Keowee courier. [volume] (Pickens Court House, S.C.) 1849-current, 1890-02-13
The Influx Of Foreign Capital.

About eighteen months ago,
investments of foreign capital, par
ticplarly that of British capital,
began to be made in American com
mercial enterprises.
This. investment was suggested
and stimulated by the organization
OF corporation which "syndicatcd"
vhc sal" of the Sir Edwin Guinness
ale and stout brewcrics, of Scotland.
The surplus capita! of the worlds
metropolis having turned such a
quick penny in this speculation,
Immediately sought for a new field,
and naturally attention was directed
to this country. A thorough system
of exploitation began. London and
other large English municipalities
have body Of highly trained and
skillful men called "chartcred ac-
countants," whose reports are ac-
ceptcd with implicit faith by all
financial institutions in England.
The task which these men had to
prcform was to verify the book
accounts of the various institutions,
take an inventory of tho plants cx-
amincd, and substantiatc statements
made in regard to business. The
work of investing in American
enterprises in short time became a
regular organized business. A large
number of properties have been
examined by these chartered account
ants, and negotiated through the
brokers of various syndicatcs. 1t is
not one but many different organized
financial associations which have
taken up these properties and "lloated"
or "placcd'' them.
The result, the editor Of the
-lrchHectWe and BuiIeling believes,
will be highly beneficial to the indus
trial interests of the country, pro-
vidcd the vcndcrs keep good faith
with the vcndccs. This provision is
necessary, because the system pur.
sued generally is to buy any given
property outright, and retain some
one who has been prominently con
ncctcd with the business to supcrin-
tend its continuance under salary.
Thus the business is conducted bv
experienced hands. The idea in
volvcd in the purchase on the part
of the vcndcc is that for himself
and his associates he can command a
business which will pay as an invest
mcnt much more than the paltrv
two or three per cent which the
same money will command at home.
The investments taken are generally
sound, substantial, thoroughly cstab-
llshcd business ventures, and the
direct consequence of this influx of
foreign capital, SO far, has been
highly beneficial. The ultimate
tendency, we believe, will be to
secure further investment in enter
rriscs that need additional capital to
promote further progress. We do
not believe in the alleged statements
OF the opponents of these invest
merits, that the ultimate outcome
will he a drain on our resources to
enrich foreign bDndhodcr, for
whenever that point is reached that
his interests are greater in this coun-
try than in the land of his nativity,
it has generally resulted in the NOV
ing to that country Of the foreign
bondholdcr. 1t is a monstrous and
pcrnicious doctrine to uphold that
the foreign bonlholaer has been q
drain upon this country's resources.
On the contrary, we owe to him the
means by which our resources have
hccn brought to their present great
development, and his coming should
be encouraged rather than impcdcd.
Sure Curc for thc Grin.