Johnstown weekly Democrat. (Johnstown, Cambria County, Pa.) 1889-1916, 1890-02-07
ENGLISH CAPITAL IN AMERICA.

ENGLISH CAPITAL IN AMERICA.
The extraordinary flow of English capi-
tai into this country within the past year
and half has been watched by many
with increasing alarm. The daily press
has done its best to give credence to the
popular anxiety, lest the industries OF
America should slip out of the hands of
their rightful proprietors into the hands of
foreigners. Under such contingency, it
has been urged our industrial welfare
would be embarrassed almost past re-
demption. That this view of the case is
extreme and unfounded, we need hardly
say. A moments sober thought will
show that the foreign capital, instead of
being a menace to our national life, has a
marked influence upon the progressive
development of our resources. The large
enterprises that have recently passed into
English hands have been bought at gen.
erous figure. The old owners hav,
reaped an ample reward for their years Of
labor, and the industry itself is destined
for time at least to justify its right to
existence by profitable production. 1t
will thus add not only to the material
wealth of the United States as nation,
but will keep large numbers of her labor
ers employed and, again, the founder of
the industry having realized handsome
profit on his first venture, will be spurred
on by success to undertake others.
All this may be granted, and yet fear
be entertained lest the foreign proprietor
should abuse his power by lending aid
to political measures, the true nature of
which he does not understand or appre.
ciate. This objection is only seemingly
sound, and is destroyed at once when we
remember that a foreign as well as a
domestic proprietor will protect his own
interests to the best of his enlightenment,
In certain sense we may say that for
eigner would be less likely to support any
political measure that involved specula-
tive results in even in a small degree
For his investment in itself, partaking
more of the nature of a speculation than
were he an American, would deter him
from increasing that risk.
Another objection to the foreign acqui-
sition of American industries is based on
the supposllion that large amounts of
money are thereby annually drawn out
of the country. True they are, but what
goes out is in the form of legitimate pro-
fits, and is but the rightful recompeuse
for the vastly larger amount of capital |
whose field of activity is our own land.
If we press this objection we might also
with equal force, maintain that the expen- |
ditures of our own citizens during vaca- |
ton tours IN Europe ale depicting the ma
tional eXohequer. The value of nmoev !
depending on It's activity, it is folly o try
to curtail its bounds.
The nature of these investments is again
in their favor being placed as they are in
industrial enterprises-br breweries for the
most part-the proprietoIship is directly
dependent upon the prosperity of these
industries. The case is no wise similar
10 foreign proprietorship in lands, which
we do not believe to be desirable
AS further justification, the manner
n which the investments are made is of
weight. OF the $205, 500, 900 of English
,apltal that has come to this country dur
ng the past eighteen months, almost the
entire amount has been placed through
io-called investment companies. These
capitalize American industries,
md dispose of them in shares to the
mall middle-class English purchaser.
They act there merely as middle-men,
md their individual responsibility is
hereby increased by their double relation
t once toward the industry and towards
he security holder,
The causes leading to this surprising
lesire of the Englishman to hold our stock
ire not easily determined, but they can be
afely classed under three general heads
FIRST, growing confidence in our Govern
nent as contrasted with those of Europe:
econd, an increasing desire for invest
nont, more especially of a speculative
ature on the part of the British middle
lass third, existence of the investment
which reduce the risk of IN
estment to the minimum.
%s-)sp