The herald. [microfilm reel] (Los Angeles [Calif.]) 1893-1900, 1898-08-05
BRITISH INVESTORS
CHANGE THEIR VIEWS OF AMER
1CAN SECURITIES
GOOD DEMAND sPRINGING UP
A Muddled Contemporary-1ndustrial
Notes-Original Insurance Ideas.
New interpretations, Etc.
OFFICE OF THE HERALD.

OFFICE OF THE HERALD,
Los Angeles, Aug. A. 1893.
The change that has recently taken place
in British views In regard to investments
in American securities is subject Oh con"
siderable interest, seeing that the market
is always strongly Influenced by the extent
of British dealings in our stocks and secur-
tiles. not to mention the prodigious amount
OF foreign capital that is brought into the
country to invest in manufacturing enter
prises.
Bradstreets has we'll considered article
ON this subject in the course OF which 1t
says:
While political opinion in Great Britain
has veered around to quarter entirely IA
vorable to the United States, 1t Is also no
ticeable that the leading London opponents
of financial sentiment have altered their
way of looking at the American market ana
the value of American securities. 1t Is
crtainly gratifying to hear that writers
whose expressions for several years past
have been severely critical wherever Amer
lean finance and American bonds and
stocks were concerned, are now assuming
very different tone. Some of them, 1t
may be said, were unable to see anything
favorable in the situation here from the
point of view of the foreign investor. even
in connection with the large crops and high
prices Of last year. while the advances
which our stock and bond markets expert
enced during the summer and autumn OF
1887 and the winter months of the present
year met with nothing but caustic critic
ism and suspicion as to their permanency
from the sources In question.
All this, however. has changed. The
theme upon which they now dwell is the
possibility that British investors and specu-
lators will soon begin to take renewed in
terest in American undertakings, while 1t
Is admitted that present conditions involve
strong probability that the coming au-
! tumn will see a renewal Of the gold move
ment from London to the United States
in fact belief is expressed by leading
London financial journals that high
ly probable drain of gold from
the old to the new world is
among the principal reasons for expecting
q flrmer money market at London through
out the remainder of the present year
Finally, 1t may be observed that instead of
viewing a renewal of interest In American
securities with distrust the economic au-
thorities, to which reference Is made. find
abundant reasons for the growth and
investment and speculative markets.
The line of reasoning followed by the
ablest representatives of British financial
thought and the best observers of specula-
tive sentiment in the London market is ac-
cordingly matter Of some interest. Among
the causes which during the past few years
Influenced British investors to steadily sell
their holdings of Americans. fears in re-
gard to the position of our currency are
given the first place. coupled with the eff
fects of the Venezuela episode and the
bankruptcy and receivershlp of so many
American railroad corporations in which
foreign investors were interested. The
passage of the war revenue bill, involving
an increase of nearly $500, 900, 900 in the an
nual United States treasury receipts
through new taxation, and the success of
the popular per cent loan. would appear
to British eyes to have permanently rem
edied the impoverished condition of the
treasury and to have removed the doubts
which the foreign markets retained as to
the ability Of this country to maintain its
currency upon gold basis. The practical
completion of the reorganization of the
railroads, whose securities were held in
any quantities by foreigners, has also had
an excellent effect, while the political
friendship between England and the Unit
ed States, which finds such decided express
sion in connection with all the phases of
our conflict with Sptain, has an effect upon
the relation to the Londan market toward
American securities which Is not the less
effective because 1t Is largely sentimental
in origin and character. Furthermore 1t
Is at last appreciated abroad that the large
profits made by the United Safes from the
last two crops together with theprospects
Of further advantageous results from the
present one, will very likely lead to contin-
ued activity throughout the Union and fur
nish a support for further appreciation in
the value of American stocks and bonds.
On such grounds 1t is pleasing to observe
that former critics of American finance
and speculation now find reason to believe
that British capital is likely to again flow
in this direction, and this Is viewed with
equanimity, IL not with approval, even
though the accompanying belief Is that the
effect upon the London money market will
be to create higher interest rates and that
diversion Of attention to Americans will
be unfavorable to the exaggerated prices
for British railroads and other home In
vcstments.
A morning contemporary in the course
of an admirably muddled. article on the
war revenue law says in its issue Of today:
an the matter of notarial certificates
things have been getting fearfully mixed.
A clause in the new law bearing upon the
matter reads as follows: Certificates of
acknowledgment of deeds and mortgages
are required to be stamped. They are no
part of the execution of the deed or mort
gage and are not covered in the stamps
required upon such deed or mortgage
This alleged quotation from the new law
would be very appropriate If 1t were only
correct. Unfortunately the law says moth
ang Of the sort. The quotation is from one
Of the numerous reversible, double back
action rulings of the commissioner of
internal revenue.
The facts about stamping notarial GER
tificates were given in this column yester-
day.