Western Reserve chronicle. [volume] (Warren, Ohio) 1855-1921, 1870-08-17
0. 5. SECURITIES IN EUROPE.

I = A.W l-l HuE - 70 GutGL THIS cuum
, Wy. II at az, financially and CONNER
clally. With the eintention Of obtain
ing the views Of the German banker!
on this subject, a reporter Of the New
YORK press, few days since, made !
tour through Wall street, and dropped
in upon several Of the German finan
eiers TO ascertain just what they
thought about the thing. The follow.
ing conversation, which took place
between him and one Of the mos
prominent Germans on the street
/ will give a pretty good idea Of whai
they think about the results OF the
war.
RepOrter-Haye you any idea thai
the Germans, who hold so many oi
our bends, will return them in anv
great quantities 10 this country bv
reason Of the War2
Banker-Well, now, you ask me a
question which could be answered In
many ways. To tell you the truth. ]
cannot see, Tor my part, why they
should.
R.-But it is matter Of common
comment on the street that the Frank
fort bankers are sending the bonds
over BY every steamer in immense
quantities.
B.-That may be the common ru-
NOR, but 1t Is only rumOr, I assure
you There can be no doubt that
there have been q good many orders
received here from Germany to sell
out governments; but you know there
are always people at all times when
ever there is an extraordinary eouvuI-
sion in the political world, who don't
know exactly which way to turn,
and who do many things, even against
their own interests, which they after
wards have reason TO be sOrry for.
R.-Do understand YOU 70 believe
that It would be an unwise thing for
the Germans, or the French, even, to
sell out their United States bonds
now?
B.-That is just exactly what I
want you to understand. It Is my
opinion that it would be q very fool
ish thing on their part-very foolish,
Knight I ask why you hold such
an opinion?
B.-Why the reason is very plain.
R.-That is why I should like to
know what il is.
B.-Well, now, see you want to
get at the bottom Of the thing. Now
l will tell you frankly that there are
many men on the street who will diff
fer with me materially. They NAV
be right and may be wrong. 80 Won
can split the difference. The reason
why L believe that the United States
bonds will not be returned here to be
sold in such quantities as might give
rise to any apprehension Of a glutii
here Is just this You know very
well that the Germans took the
United States bonds when the United
States was IN the thrOes Of a mighty
struggle for its existence as q nation.
Need / tell you that there were thou
sands abroad as well as here who had
serious doubts OF the final triumph Of
the government, and who had pre-
dieted the utter defeat Of the North
as against the South. Well, the re-
suit we ali know now. During that
terrible struggle the government is
sued its bonds, which its own people
eagerly took up, and the Germans
bought largely Of them after they had
passed through first hands. Indeed
many German bankers in this city had
heavy orders to buy largely directly
nom the government for Frankfort
and other German accounts Now,
the reason why 1 do not apprehend
that the United States bonds viii
come back to any alarming extent, is
that It seems absurd that q people
who are in state OF war themselves
should willingly sell out the bonds Of
a government which is at peace with
the world, and which bonds they pur-
chased when that government was in
a rather shEky condition. Certainly
If they had confidence enough in this
country during the war to invest their
money in its bonds, the fact Of being
in war themselves would not make
them lose that confidence when the
is at peace. The theory
is absurd.
R.-But suppOsing that the bonds
should be sent over here in immense |
quantities 70 be sold, what then?
Bon what ground do you base
your hypothesis?
R.-Well, the Germans are patriotic
IN this war and may want to take up
the loans OF their own country.
bah! see you mean that they
may sell out the United States bonds |
they hold, simply to get money where
with to have it in their own bonds. |
Well, If that happened to any extent |
the consequence would be a rise in
gold here for, you see, gold is the
current money over there, and they'd |
have to get gold for the bonds theyid /
sell That would take much OF the /
gold here, you see. But I assure YOU /
there is nothing Of the kind to be fear
ed. The United States bonds are held
In large part by the middle classes in
Germany, who would not willingly
sell out their United States bonds to
exchange them for their own govern
ments at much less rate Of interest.
They know the value Of q dollar as
well as most people. The men who
have plenty Of funds at their COM
nand will undoubtedly invest in the
Prussian loan but they will cling to
heir United States bonds TO the last.
R.-NOw, suppOsing France should
be victorious in the struggle, how do
you think the result would affect this
,ountTy financially or commercially,
Z at all? --
B.-But she can't be victorious? i
R.-Well, suppOsing Prussia should
be the victor?
B.-AhI that's another thing
Why, the commerce between this
country and Germany will bedoubled,
md the harmony between the two
countries viii be made stronger than
sver. There is quite a commerce be-
.Ween the German ports and this
,C'lntry now, and sure as Prussia laws
'1ench impudence in the dust it Will /
sxpand. l.
R.-If Prussia should not be vieto-
-iOus?
B.-YOu are suppOsing an fmpossi-
)iltty again. II such q thing should
happen I think it would be bad for
he country, for France would place
ueh restrictions on commerce that
he intercourse between this country
md Europe would be narrowed down
R.-You give that opinion as a Ger
nan2
B.-Well, both as a business man !
nd German but I viii say that
congress has been very foolish. Iun-
erstand that there are many steam ,
hips and other vessels living idle in
his port which, had Congress author
Zed them to register under the Amer
ian nag, would have continued their d,
rips all the same. This country can
make money out OF this war II Il wants {
D and get back its old shipping inter- !
st, particularly II England is drawn :
1to the contest but we must look to !
'Ongress for the opportunity. ;
Here the conversation ended. and
ne ranOrtpr left Wall sfraak ocy,,-iv,,,,l