The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1900-12-31
Buying Securities Abroad.

The inquiry has been frequently made
why 1t is that, with the enormous trade
balances in favor OF the United States
shown by commercial statistics there has
not been a correspondingly heavy import
alton OF gold from abroad in settlement
Of those balances. The London Statist.
financial authority second to none in
the world. in the course of an article on
the vast accumulation of wealth in the
United States, gives very satisfactory
answer TO this inquiry:
Assuming that the estimate OF the bal
ance OF trade in favor of the United
States during the past four years which
is generally accepted Is approximately
correct, the United States on its exports
realized a profit Of something like 100,-
000 600 sterling year: and there has not
been the importation OF European COM
modties which might have been expected.
and which was usual In former periods
of prosperity. If upon the foreign trade
there has been a profit anything like
what il usually estimated. then the
profits upon the home trade must have
been immensely larger. And making al
lowance for immense investment in
houses. lands. Industries Of all kinds, for
the creation Of trusts. and so on. there
must stiIl remain a very large accumula-
ton. That being -, 1t was natural to
expect that America should buy back Its
own securities from Europe. And 1t has
been engaged in doing so for the past
four years. Practically. German holders
have been obliged to sell during the year
now closing by the pressure in the money
market and the stock markets their
bold t1Ar
free market for these. and not for others.
And though there was not the same
pressure here at home, yet British hold
ers likewise have been selling persistent
ly Nearly the whole of the floating
European stock, then, has been bought
back"
That is part of the solution Of the
question, which the Democratic free trade
newspapers that propounded the inquiry,
have ignored. The country has not only
been paying it's debts contracted in pre-
vious eras. but 1t is replacing foreign cap
ital IN the ownership OF American stocks.
The good result OF the large balance OF
trade does not stop with this year. The
purchase of American securities held
abroad means that enormous amounts
which have heretofore gone into foreign
hands In interest charges upon those Sc
curities. or IN dividends upon American
stocks, will be in large part retained at
home. With each succeeding year that
the balance OF trade remains In our favor.
there will be more and more OF this buy
ing back of American securities hereto-
fore held abroad, and more American
money permanently invested IN Europe.
Great Britain. through her wealth invest
ed all over the world paying constant
tribute TO the home country, has been
able TO prosper despite an adverse ball
ance OF trade. But Engand's aecumula-
lions have been going on FOR generations.
The balance of trade in favor OF the
United states has brought this country
In a very few years into M strong. II not
stronger. financial position, than Great
Britain. That position bids fair TO be
stili more strengthened I'm the future. pro-
yided the same policies are pursued as
have bullt up the industries and the COM
meree of the United states. within the
past few years.