Rock Island daily Argus. (Rock Island, Ill.) 1886-1893, 1890-01-06
BRITISH WEALTH.
About 100000, 900 Invested
in this Country.
TALK WITH AN INVESTORS AGENT

/
States of the Great Increase of Cash
| A Mortgage Buying Company.
New York, Jan 6.-Nobody need have
any fear that England Is buying up all
America or is putting big mortgage on the
country. Genuine INVESTMENTS of foreign
capital which are intrinsically enormous
have been made in this country during the
past eighteen months, but in comparison
with the business of the nation the total
amount represented is almost insignificant.
| The sum of English capital placed in the
United States within that period may reach
$500 600. which represents a maximum
earning power of $50, 000, 600 annually-a big
/ sum, but small compared with the income of
even single big town in this country The
| first big venture of English capital among
| American industries was in the summer of
1888, when the New York Brewery company
was formed for the purchase of several
breweries in New York and New Jersey.
| Gobbled and More Wanted.
The project was spread before the London
public and there was an astonishing rush for
securities The public subscriptions
amounted To S;i5, 900 900, nearly eight times
the amount offered, and the shares were dis
/ tributed pro rata among the subscribers.
| From this point the business grew with
amazing rapidity The Messrs Untermeyer
| have acted as American agents for the plac-
ing of more than So, 600, 900 of English capt.
tai in this country, and they now have deals
on hand approaching contamination
amounting 10 many millions more. The in
vestments of English capital in the imme-
date vicinity of New York within the past
eighteen months amounts TO SIS, 00O, 900, and
| are all i'm breweries.
The Money of Small Investors.
Samuel Untermeyer, in explaining the
| workings of the great system which has
sprung up in London for the purpose of Sc
curing American investments said that the
money had come from small investors and
not from capitalists.
Mr.. Untermeyer thinks that public opinion
in this country is nearly ripe for the floating
of industrial enterprises upon the same plan
which has proved popular in England The
chief difficulty is the absence of all safe
guards in the line OF financial institutions
especially designed for such purposes. The
| strict rules of the London stock exchange are
| an especial advantage in this direction. All
Of the American enterprises sold to English
| investors, which Mr.. Untermeyer represents,
are listed upon the London stock exchange,
the rules OF which require not only a com
plete statement OF resources, but a full dis
closure of every contract and asset of a cor
poration seeking admittance No such or
ganization as the trusts now dealt in ON tho
New York stock exchange would be admitted
| TO the London board.
Prospects for the Present Year.
Regarding the prospects of a further influx
| Of English capital, Mr.. Untermeyer says:
"Within the past four weeks there has been
renewed activity in the investment in Amer
| lean industrial enterprises, and there is every
reason 10 believe that the new year will see
far greater amount of capital introduced into
this country from abroad than was brought
here in 1889 There has been invested in in
| dustrial enterprises in the United States
since August, 1888, when l made the first
| issue of American securities, more than $780,
| 100000; but during the same period more
| than $500 900 900 has been subscribed in Lon
don for other countries, including the Argen-
| tine republic, Chill, Peru, South Africa, the
Transvaal and New South Wales, so that the
Investment OF capital in this country repre-
sents scarcely more than 10 per cent. of Eng
lands output last year. do not include in
my estimate millions that have gone into
mining and land speculation.
Thinks 1t Good for Uncle Sam.
u believe this great influx of foreign CAPT.
| tai will greatly assist the development Of
| our industries. The United States is not
rich country 1t is too young TO have be-
come rich, and il is so vast that it can
| properly employ all the capital that can be
| diverted TO it. The small amount of profit
| that goes to England from industrial enter
prises in the shape of dividends upon the
business Is tritiing compared with the
| amount of money that the Englishmen must
spend here, especially in the employment of
labor TO earn that dividend The man who
| has business here and sells to an English
company employs his capital in n new direc-
ton and creates new demand for labor,
while the English companies which succeed
TO the business must continue to employ the
laber before engaged.
| One Hundred Millions Coming.
"Within the past four months companies
have been formed in London for the pur-
pose Of investing in industrial enterprises in
America with an aggregate capital Of not
less than SlOO, 100000 The last company of
that kind recently formed is a corporation
known as the Law Debenture Corporation
| for the purpose OF acquiring mortgages on
| industrial enterprises. 1t has a capital of
Sl5, 900 900 The trustees for the debenture
holders are such men as the present attorney
general Of England, Sir Richard f. Web
ster, Sir Charles Russell and the Law Guar
antee and Trust society. while the board OF
directors embraces members from all of the
| leading law firms in London. The people
| who formed the company are such men as
the duke Of Wellington, the earls Of Win
chelsea and Nottingham, the marquis OF
Abergavenny and host Of others known to
everybody in England"