The international trade in securities žave rise to a net inflow of capital in 1998, in contrast to a small outflow in 1937. Increased demand for Can-adion stocks from the United States and from overseas countries other ihan Great Britain was the principal source of the net inflow of capital from the trade in securities. This de-tand was evident during most months of the year, including those when international unsettlement was greatest.
Less complete information is avail-aile at this time concerning the group of transactions classified as "other capital movements," but the net outflow of capital under this head has been tentatively placed by the Bureau at a higher level than in 1937.
Statements of the Canadian balance of payments in each of the past five years, the letter observes. display inzny common characteristics. A balance of credits in the current account, pointing to outward movements of capital is shown for each year. The principal sources of these credit balances have invariably been commodity trade, gold shipments and the tourist trade, credit balances ruling for each of the three items in every year.
Capital movements likewise display meny parallel tendencies throughout the five-year period. In each year the outward movements of capital from the redemption of Canadian securities owned abroad have exceeded inward movements of capital from the flotation of new issues of Canadian securities in external capital markets. Caradian liabilities have accordingly been reduced. Other security tran-sacians (international sales and purchases of outstanding securities), except in 1937, have given rise on balance to inward movements of capital, fi setting in part the reduction in Canadian securities owned abroad resulting from retirements. Other capital movements have been outwords on balance and in increasing volume. These, too, have the general effect of either reducing Canadian indebtedness. abroad or increasing Can-adion-owned assets outside of the Dominion.
Text read from the printed page and cleaned; old type leaves the occasional error.