The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1900-08-15
WORLDS MONETARY CENTER.

In the most recent issue of the Weekly
Financial News, commenting on the re-
cent purchase of British bonds by Amer
lean capitalists, Henry CIews says:
My prophecy made several years ago
that New York viii become the none
tary center of the world does not now
seem so visionary as it once did. Great
Britain issues a war loan of $50, 900, 000
and allotS $2S 100000 to the United
States; not because of inability to place
il at home ION the contrary, British
pride, like our own, seems to have re
scented borrowing abroad, but very
largely to strengthen the Bank of Eng
lands reserves. and somewhat as a
matter of good policy New York has
thus been selected in preference to
Paris or Berlin.
This is altogether a very remark
able departure in international finance,
emphasizing in a most striking manner
the present financial strength of the
United States, and our development
from a debtor to a creditor nation until
we are giving financial aid to the most
powerful empire the globe. This
transaction affords US a financial pres
tige never before enjoyed and is an
other decisive step in the direction of
New HorkS advance to the first place
in the worlds money center. 1t is the
forerunner of the worlds government
securities that will ultimately find their
broadcast market here We have dem
Onstrated our immense financial strength
before all nations and now make a be-
q
leading exchanges of the world are the
Royal Exchange in London, the Paris
BOurse, the Berlin, Frankfort and Vienna
Bourses, and the New York Stock Elk
change. but the latter is now on its way
towards the leadership of all these
"A very sensible provision in regard
to the allotments of the British bonds
is that negotiable certificates are TO be
issued against subscriptions This will
permit an active trading in them, which
we snail no doubt see upon our ex-
change Markets are thus opened to
this issue that are denied to English
consOls. deliveries of which are only
accomplished by change of registration
upon the government books in the Bank
of England The latter are confined in
consequence TO a home market The
English government might with great
advantage consider the extension of
worldwide market facilities to them
which would be Obtainable by the issue
of similar transferable certificates when
demanded by any holder Of consoIs. 1t
is most noteworthy that American sub
EcTiptiOnS to the English loan have not
produced the slightest disturbance of
money rates.
1T is not improbable that the British
Exchequer experiment viii be repeated
by other nations and New York soon
become a good market for the securities
of numerous foreign governments. The
accumulation of capital in the United
states Is proceeding at an enormous
rate. and the absorption of a portion of
this abroad viii avert congestion on this
side The course Of our foreign trade
during the last three or four years Gre
ated an immense balance in our favor.
These funds are not wanted here; and
their retention on the other side, where
they are most wanted for relief in Lon
don and Berlin, is beneficial to New
York. Thus the international exchanges
adjust themselves automatically afford
Ing support where support is most
needed.
THE new British loan may be con-
eldered q good investment for those who
require that grade of security, being re-
eeemable at par in three years and pay