New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-11-02

Few people may be able 10 reap large gains ouI
the multitudes lose. and they make the quota
tons. It has occurred several times during the
last decade that countries have had to curb
their warlike propensties. not being able to
procure the funds needed for their realization.
It due to the position of the European ex-
changes that Argentina and Chill decided 70
submit their boundary disputed to arbitration
that quiet was preserved in Macedonia, etc
Not only in positive. but in negative. way
we'll. the exchange may become useful AID
to the Governments policy The first Russian
railroads were constructed with French money
at the time Of Louis Napoleon. When the
French policy grew inimical to Russia. Russian
promoters applied to Berlin, where series of
Russian railway loans were taken over AS a
natural sequence great number OF Russian or
ders for railroad material were turned over 10
Germany. The Russian policy was friendly 10
Germany The cooling of political relations
conceded with the shifting OF Russian securities
from Berlin and their absorption in France IL
required active agitation for almost two years
before France absorbed Russian securities on
large scale. AS Frances power Of absorbing
Russian loans increased, the political intimacy
between the countries grew. Italy at one time
had recourse to France satisfy her financial
requirements. When these two countries began
to quarrel, Germany FASTENED to place her ex-
change at the disposal of the Italian Govern
ment. Thus started. in connection with
the Franco Prussian understanding and the
triple Alliance. the removal of Italian securities
from France and their placing in Germany, to-
gether with the financing Of the new Italian
railroad loans. The exchanges in this move
,nent were an indispensable factor for carrying
through the political programme.
EXPERIENCES IN THE ORIENT.
In the Orient Turkey had been aided since the
cd and England.
When the intimacy between these two countries
grew weaker the English withdrew from Tur-
KEY leaving 1t to the French to satisfy the
needs of her Government. while crowdng out
the French politically and financially in Egypt
To-day Paris is the Stock Exchange centre Tor
Turkish loans. The Austrian influence in SerVia
and Bulgaria could not have been maintained
If the Austrian Government had not been able.
with the aid Of the Vienna Exchange. to pro-
cure the means for those countries to complete
their railway systems and reorganize their
administration. In Norway and Sweden. which
formerly looked to Germany for their financial
needs the French are successfully engaged In
crowding out Germany. The battle for the pos
session of Persia is being fought between Eng
land and Russia on the financial plane: Russia
has advanced the money to the Persians to
pay the debt incurred with the fnanciers repre-
scented by the Imperial Bank Of Persia, to
redeem the pawned ports of entry on the Persian
Gulf. thus weakening English influence.
1t cannot be gainsaid that Germany has been
almost everywhere the loser in these move
ments of the last decade. by means the
smallest responsibility for which rests with the
authors of the legislation enacted. 1t is easily
understood how the growing power OF the eX-
change in recent times has excited envy, but 1t
must be regretted that this envy was able to in
fuence legislation.
THE RECENT GERMAN LOAN.
This is illustrated in the recent and widely
discussed sale of 100000 marks of treas
ury notes In Itself no fault can be found
IL a country places considerable amounts Of
its Government loans abroad. Germany in
former years owned great amounts Of Ameri
can Government bonds she still holds great
amounts of American railway securities No
body doubts the power Of Russia. though Ger
tainly six billions of its Indebtedness
are held by foreigners. But in financial trans
actions forms just important in social
intercourse. 1t makes q difference whether we
allow ourselves to be sought. are seeking our
selves. The way in which our negotiations were
concluded unfortunately created the impression
abroad that Germany financially weak.
That it would have been a trife for Germany to
absorb such loan is not doubted in the slight
est degree by those competent to judge. More
over. the reason for the preference given TO
American purchasers based, according to
all experience, only upon the theoretical argu-
nlent of certain nervous people who believed
that foreign gold would thus be brought into the
country. This opinion Will presumably turn out
to be mistaken, and the greatest part of the
loan. the contrary, will return TO Germany
within a short time.
Be that as it may it cannot be denied that the
incidents following the closing Of the loan, main
ly due to Legislation regulating the Stock Elk
change, have created a generally unfaVorable
impression everywhere. Even before the closing
of this astonishing deal the American press
raised great noise to the effect that Germany
was going 10 obtain in America the probable
cost Of fitting out the German expedition to
China" Immediately after the conclusion or
the negotiations The New-York Herald pub
lished The details under the large heading,
American Money for German Needs" with a
good likeness of Herr MIGUEL. The funda-
mental of the press the jeering thought
that the United States could easily afford to let
Germany have a few millions, If she desired
them" While these articles do not prove any
thing but a certain aWkwardness on the part or
the negotiator, they gained semblance of JUS
LITIGATION from the fact that by September Is
the American subscription going on, while
in Germany 1t could not begin till week later,
September 20 owing 70 the legal regulations.
This naturally spread the impression all over
the world that 1t had been necessary to apply to
America and that only that part Of the loan
refused by America to be placed in Ger
many. That the German quotation Is even now
higher than the American, and that the loan
started TO return the very first day. unfortunate
~ cannot change that impression. The method
Of procedure required by the Stock Exchange
law created the impression that Germany con-
SluSTeu HeT means exhausted II stamped the
affair not only a financial but at the same
time as political defeat. Had the Exchange
been freer this could not have happened.
The opponents OF the Exchange owe their
| success 10 the clever utilization Of the moral
| condemnation, justified in itself OF the gam
bling spirit In the interest OF the maintenance OF
their political and social influence II seems to
| them undesirable that classes heretofore under
! their predominance should be placed in a posi-
| ton by the developments OF modern times to
| render services to the community for which
| their own economic resources would never have
| sufficed ever will suffice.
The question of principle at issue In this
| contest is whether the increase of convertible
J al cnrnnrno rod Hrnd