The Bennington banner. [volume] (Bennington, Vt.) 1858-1894, 1889-07-25
FOREIGN INVESTMENTS IN THE
UNITED STATES. 81

UNITED STATES.
II is among the remarkable phenom- !,
ena Of the present day that capitalists no
longer limit their investments TO enter-
prises protected by their own Govern
ment. The facilities for intercourse
which have effected time and distance \
have gone far to obliterate these jeal-
ousies and fears which formerly were
entertained by men of different nation
alities toward each other. Especially
within the past ten years has the effect
of this change been shown in increasing
Investments of foreign capital in cOrpor-
ate and individual enterprises in the
United States. Within the past. year
have these Investments grownito such
magnitude as to command wide atten-
ton. Conservative estimates place the
Investments in American industries dur
ing that time at more than 100 millions
of dollars. Erastus Wiman, who is well
informed in such matters, states the
amount at 200 millions Many of these
Investments are in stocks and bonds
bought in the market, in which case
they do not attract attention. Others
take the form of purchases of cattle and
ranches; the construction of factories;
the organization of trusts to control i'm
portant industries; loans upon securities,
and temporary investments of various
kinds. Nearly all of these are public by
their nature, and become known to the
people through the press. No doubt the
larger part of. the European capital
transferred to this country during the
past year has been invested in some of
the many trusts recently organized.
The advantages of the movement o.
capital to this country are many and OBJ
vious. IT promotes the prosperity Of the
people by developing industrial enter
prises which otherwise would lack ade-
quate capital. This is no less true of
trust investments, for there can be no
doubt that while in some cases combina-
tions for higher prices may for a time be
onerous to the people, they will in the
long run provoke greater competition
and larger production, with correspond
ing benefit to the people in prices of
commodities and in the demand for
, labor.
A further advantage of the movement
of capital to this country is that il low
ers the average rate of interest in the
United States. To this cause chiefly
, may be attributed the great decline in
, prevailing rates of interest all over the
United States in the past twenty years
Twenty years ago seven per cent. was
the legal rate in New York State and in
close market it not uncommonly rose
to 8 or 10. OF late the rate in New York
City rarely is as high as the legal rate OF
per cent. In fact six per cent would
now be regarded as the effect of tight
market, while four to five per cent. is as
| n hnrrnUnr OnnA or N N
ought now to pay on an average market
The facility with which foreign money
is brought here and the amount of il
now here ready for Investment serve
also the important purpose of preventing
, the long duration of money panics.
To these many advantages, resulting
from large foreign investments here
; may be added The weighty consideration
: that, so long as such Investments con-
tinue, they will constitute standing
barrier against the interruption Bf friend
: ly relations between the United State,
and foreign countries. The fact that i
would he within the power and tn,
: right of the United States to confi4cat'
: the property i'll this country Of any citi
! zen of a Stale at war with this natio.
W II prove an Irresistible argument f."
&, peace. A thousand millions of Englisl
money invested in the United Slate
\ would 60 far toward paying our c,et .
= war with England, The 5elIrgereh
7 temper Of the hostile power would III
: further &C fled by the r. Election tina
, the people of the United States had b, CT
- 80 well Satisfied wi,b home markets amt
:, home industries, developed by our Pro
tectIve policy, that they had not founC
j, foreign investments attractive, an
there that there was but little American
;, property abroad upon which to he allat
7 for ooufiscation of fore ga property il
the United S ates.
The Chicago Daily Nelcs Of June, "a
with that singular obi guilty If visiol
= which characterzes free traders, discuv
V ers in the flow of capital from Engl I'M
!, for more profitable inyesments in tn
v United States, proof of the superior ad
vIntages of free trade. To any uthe
= class of minds it would, on the contrar,
= be the strongest proof of the decay o
y industries in England and the create
y prosperity of the industries of the Unitet
" States. For long time the bone ant
sinew of the workingmen of Englant
4 have been abandoning their homes an,
y their workshops to fluid more prulitabl
!. occupation and higher modes of life il
- the United States. They have led tn
- procession and now their employers ar
) coming with their capital for the sam
:, reason-to reap the advantages of ma
. tional policy which protects both labo
and industry. .t
In the language Of the New York Press
II il takes "tarIff.cursed country" t
. bring in outside capital and keep labo
!, profitably employcd-Americdn Econo
:; mist