The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-03-23
AN ELOQUENT EXAMPLE.

The important announcement is made
that the Canadian Mortgage and Trust
Company Qimited), and the United Trust
(limited), both wealthy Liverpool corpora
tons, have arranged to lend $1,000000
within ninety days on California country
lands, and that other rich English corpora
lions have an agent here inspecting the
State with a view to the selection OF prop
erty on which to lend additional millions.
The United Trust of Liverpool has decided
to buy the Fresno Land and Irrigation
bonds, the proceeds of the sale of which
will bring under cultivation large area in
one of the richest sections of the State.
1t is most significant that these money
lenders are combining their investments to
those agencies which will develop natural
resources, and thereby increase the popu-
lation, wealth and prosperity of the State.
This is very different proposition from
that of lending money on 'gilt edge city
property, and tbs in this difference that our
own capitalists may find reason for some
hard thinking. That English capitalists,
after an intelligent study of the POSSIBLE
ties which exist all around US, should back
their Judgment with their millions is the
most eloquent example that has ever been
set before our people. Their exhibition of
greater faith and enterprise than some of
our capitalists have dreamed of, is the Sc
verest rebuke that the silurians among us
could possibly receive.
The subject presents many interesting
phases. Although, since the recent adop-
ton of an amendment to our constitution.
aliens residing abroad cannot acquire land
IN OK nt,,- cI,,
still have the power to lend money to us,
and they are wise enough to embrace the
opportunity. As we have pointed out
heretofore, this country is already paying
to foreign holders of American securities
considerably more than $500, 0OO, 600 every
year in the form of interest and dividends.
1t is clear that if this money were kept
and reapplied in the additional develop
ment of the country the march of progress
would proceed with tremendous strides.
By reason of the fact that California's pro-
portion of outflow is very large, the drain
upon our productive capacity is proper
tionally severe.
Now comes the assurance that this tax
is to be largely increased by further loans
OF English capital. 1t would be both I'M
gracious and unwise to discourage such
movement, for however large the
amount that we must pay to these CAPT
talists, we shall receive much more for the
use OF their money; the balance will be
largely in our favor. not only directly from
the use of this money for its specific pur-
poses but indirectly in various obvious
ways, such as the enhancement in value
of unimproved property contiguous to that
which is thus to be improved, the encour-
agement to others to follow the example,
the interest which the leaders are bound
to take in assuring the success of the en-
terprises which they aid, and so on. One
of the most important results will be the
increased volume of traffic which it will
bring to the San Joaquin Valley Railroad
and the larger profits which will accrue to
that enterprise.
But however valuable the influx of this
foreign capital it will take away money
that is so badly needed here. This could
SO easily be saved to the State and rein
vested If only those unenterprising citizens
who have abundant means had the wisdom
and enterprise of capitalists who live six
thousand miles away.