The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1897-01-15
why PAY INTEREST ABRoADp


One great bugaboo to b number OF peo-
pie ID the heavy interest charge annually
paid 20 foreign holders OF American gov
ernsnent and private securities The total
amount OF foreign capital loaned on such
securities in the United States 10 upwards
of 400. 600 900, land the amount Of interest
which goes abroad represents heavy an
nual drain upon the country.
There Is this TO be said. which II quite
frequently overlooked. that . very heavy
amount of tho foreign capital which has
been loaned in the United States has been
utilized in Developments work Of the
country. which directly and indirectly
has resulted In tho increase OF wealth Of
producing much more money than the
original borrowed capital. The foreign
capital, which bTy1it large share OF the
railroads OF the country. may have re-
suited in placing a heavy burden upon
those roads. but the building OF the rail-
roads has been the means Of creating new
values in the regions traversed by them.
amounting 10 far more shan the cost OF
the roads themselves. In ordinary sea-
sons. the capital invested in a manufactur-
ing enterprise earns considerably more
than the ordinary rate. OF interest for Dor
rowed money; while the factory itself adds
annually to the wealth Of the community
in which II islocated. Nearly, If not quite
all OF tho wonderful development OF the
resources OF the United States during the
past thirty years. SURPRISING anything
ever seen In any country during a like
period. has been rendered possible by
means OF foreign capital freely loaned for
use in such development
II may be questioned whether the coun-
20 has not reached a stage when II can
speedily become independent OF foreign
capital. There are at the present time enor-
nous amounts Of idle capitalAin the coun-
try. looking for investment. The trouble
Is that the industries which need that CAP
Ital for their development. do not al pres
ems appeal 20 the owners OF capital as be-
Ing either safe or prospeotively profitable
II Is quite certain, judging from careful
reading or the market reports for the past
two Or three years. that heavy amounts
OF European capital have during that
period been Withdrawn from this coun-
try. and that the American securities sold
10, permit OF such Withdrawals have been
purchased and are now held at home.
This may prove 60 be the forerunner OF
the tlms when this country can achieve
not only Industrial. but financial lnde-
rentencs; when is capital viii all come
from home sources. and the interest could
"a kept al home. as is the ease with the
rich European creditor nations. The rich
European nations have only become rich
ard thrifty within a comparatively brief
period. as time IS measured in the history
of states. Germany. az the end Of the
Napolecnic wars. had less OF population or
az wealth than Il had a. tho end OF the
sixteenth century. Tneesssnt wars and
devastation. beginning with the thirty
years var ard lasting through unn weg
into this century. had reduced the popu-
latson and lei the country into a state OF
poverty. from which Il commenced 70
emerge on}y sixty years ago. Even in
the early To's Germany was deeply IN debt
ca other nations. q. large portion OF IS
governments debts and O. It's railroads.
water ara gas works. and other Ike re-
uunsrative Investments. we're Owned BY
foreign CAPITA. mostly Enslsh and Dutch.
A quarter of \ century ~ peace ard in
sgstrv has perrnsrte6 mat country. e.
though taxed % support an enormous war
establishment. - accumulate horne cap
ttsl ample rot only 20 pay al -
- foreign indebtedness. eat 70 carry
81 vas: schemes az internal improve
rneat 20 hscous a SERIOUS competitor
~ Great Britain as msnufac-
tursr sad - make large investments rot
oaiy 81 TIE United States. ba, n Austria
ia, Africa ard South America
Ta5s cooa--v g Tar richer IN Internal re-
sources taan Germany q neither has IRE
devastating Effects 81 century % var
- avercorne. -or ire heavy aarsea q tha
support O. a. fsnreraf government and
army - bear. 4 s. ksers aIorf from al
erarfTtc2, s-benasx for TIE creation %
wealth hy slAfate. e lt encourages re
lavsssnasat % Is awn cstizsns Ia Sa.A en-
sssSsssss a. wia s1ss9.ly ss.zs -. sssa.