The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1889-08-14
ENGLISH CAPITALISTS IN THE UNITED
STATES.

The investment Of capital IS an
expression of confidence, not only in
some particular business, but in the
stability of the country. The Lon
don Illustrated News estimates that
Englishmen have invested not less
than five hundred million dollars in
American railway bonds. But this
is only one item Of investment. |
British capital is now seeking in
vestments in breweries, -four mills,
mines, and in other great enter
prises which promise to pay mod
crate dividends. The volume of
this money drift has largely in
creased during the last few years. Is
there any visible reason for this in
flow Of capital from Great Britain
other than the desire for profitable
investment? Now and then one may
read in English publications sharp
criticisms on the instability Of re-
publican institutions in this coun-
try. If these were to be accepted as
just the inference would be that
everything was unstable, that the
great geographical divisions Of the
country were hostile to each other,
and at no distant day there would
be political chaos.
Now, if this view were a just one,
or had in it any element Of truth,
British capitalists would not be
sending over their money by mil
lions for investment in this country.
They have at present, according to
| q
thousand millions invested in vari-
Gus enterprises in the United States.
Probably about one half of this is in
railway bonds and shares, for the
reason that, while these are not in
all cases the safest securities, the
interest and dividends are, in most
instances, large. John Bull likes a
solid security, but will accept one
less solid in consideration of larger
returns. There is at this date more
British capital seeking investment in
the United States, probably, than at
any former period in the history of
} the country. If great enterprise
. is set on foot there is no trouble in
securing foreign capital. There is
not a good mine in the whole
country, nor one that promises to be
good, the owners of which could not
J secure foreign capital.
In times of great political dis
turbance, or when revolutionary
tendencies are visible, capital expe
riences the first tremor. Capitalists
are proverbially cautious and timid.
The political disturbances in Ireland
may have something to do with the
outward drift Of British capital.
Possibly the impression that great
European war is pending may have
had much more to do with this
money drift. The situation in
Europe is less assuring than it was
six months ago. Russia few days
ago DISTINGUISHED the Lutheran
Church in that country because it
was essentially German in origin
and sympathy. No less than 3,OOO,-
600 communists were, by decree of
the Gar, unchurched. Perhaps the
political significance of this act has
been overrated. If great Euro
pean war were to occur at no dis
tant day, while there would be some
great opportunities for the employ
ment of capital in quick turns,
stocks would tumble.
The one thousand millions which
British capitalists have invested in
the United States, and the other
millions that are coming, is fact
running counter to all the adverse
criticism on the institutions of this
country. 1t is John Bulls testimony
that Republican institutions are to
be trusted If he thought otherwise,
his money would not be sent here for
permanent investment. He is send
ing more money to this country at
this time than to any other in the
world, and this, too, when all Europe
is menaced by the danger of war, the
beginning and the end Of which not
the wisest can forecast. While few
foreign critics are busy in trying to
prove that things are in bad way
here, the increasing volume Of Eng
lish capital seeking investment is an
intelligent foreign judgment in favor
of stability.-LS. F. Bulletin.