The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-12-24
H. seeT-5. 80.
The Worlds Financial Center.
A reader asks

center has been shifted from Europe to
this country, what, specifically. were the
facts that, brought this change aboutf
What effect will it. have upon us? Will
the change be a permanent thing?
The statement that the worlds financial
center has shifted from Europe to the
United States was based upon the fact
that our banking resources are now prac-
tioally equal to those Of combined Europe
and are almost twice as large as those Of
the United Kingdom alone. We have not
at hand the exact figures for the bank de-
posts Of Europe, but the report OF Con-
troller Of the Currency Ridgely, published
Dec. 1, gives the total bank deposits OF the
United States as $9,307, 2S1.904. At that
time the New York Times gave the figures
for Europe. which compared with the
figures for the American deposits as stated
above. =...
It Is fair inference to conclude that
the nation which so leads all the nations
of Europe in bank deposits as the United
States does, is now the financial center Of
the world Supporting this Inference is,
the fact that Of recent years foreign loans
have been placed in New York and that
that city is now the center of many great
financial projects, such as the ocean
steamship lines merger. which If under
taken few years ago would have been
engineered in London. Owing to. the lack
Of good system Of branch banks abroad,
world center for ordinary commercial op-
eratiOns. But the United States unques-
tionably has the capital as we'll as the
wealth to claim now to be in a broad sense
the financial center Of the world.
It might require a book to tell what the
effects will be upon US Of becoming the
worlds financial CENTER but one of the
first will be the radiation Of money from
the United States to all parts of the world
! for investment. At present American in
vestments abroad are much less than those
| of either England, Germany or France,
and that fact continues to make the
worlds financial center for most practical
purposes to remain on the other side Of
the water. But at the rate which Ameri-
can money is now going into England and
France and various other parts Of Europe,
Canada, Mexico, South America and the
orient, large part Of our capital will be
invested abroad. AS this process adj
vances and American banks, such as the
new International Banking corporation,
begin to get a foothold the world around,
New York will become the worlds bank
Ing center even in the sense Of the daily
operations Of trade. The more our capital
goes abroad, the less will become the So
called favorable balance Of trade that we
now talk so much about because divi-
dends and interest on investments will
press for payment in the shape Of goods
rather than money, and American debts
abroad being wiped off, not so much Of our
wealth will be sent there ito pay foreign
creditors. We will then anass wealth
not only from our own great natural re-
sources and our own vigorous and .ener-
getic population, but the surplus wealth OF
the world will how to us as it now does
to Germany, France and England, though
not necessarily to the supersession of the
Investments Of those nations.
IN view of the fact that no other civil
lied nation has so large number Of in
telligent, and energetic people as we have
living in land that abounds with natura
} wealth, and that we should have at least
as good an opportunity as any other tt
draw on the wealth Of the world outside
our boundaries, it IS reasonable to con.
clude that the great lead the United
States now has in wealth and capital viii
be increased from year to year for al
indefinite period.