The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-07-15
OUR FOREIGN INVESTORS


was speedily to become the financial
center of the world.
There followedga period Of great In
ternal development. Our banks en-
larged, manufacturing plants added to
capacity, jobbers reached out for new
business, building and real estate activ-
ity increased, and the railroads an
nounced important plans for new extern
sions, besides which vast sums were
turned into improvements and better
ments. Today there is not enough idle
capital in our country to meet the de-
mands arising from this great activity
and we are borrowing money abroad. =
! There has developed therefore, in
every financial center, an increased in
terest in the European. market for
American securities The New York
Evening Mail sent it's financial editor,
Mr.. Charles F. .Speare, to Europe to
look into the situation, and to him we
are indebted for some new estimates
covering holdings Of American securi-
ties by European investors.
In Minneapolis foreign investment at
once suggests England, for the stocks
of one Of our great local milling COM
panies are largely held in London, and
other stocks with which we are famil-
lar, as Great, Northern and Northern
Pacific. Not long ago the conservative
English investor was looking askanca
at American securities and tying up
closer to his beloved consols; but since
the Boer war and its attendant troubles
sent these down thirty points, and it
was shown that governmental guaran-
tee Of fundamental security was no
guarantee against market depression
American securities have returned to
favor. SINS %r,~
Little Holland has long been an in
weston in America The Dutchmen
bought our government 6 per cent
bonds at 60 during the dark days of the
civil wharf.-the greatest bargain ever
picked up. Holland investors now have
about $700,000,000 in Americans, prin-
cipally in railroad bonds. Thousands Of
people own them. The average holding
is three or four bonds, and a man with
100000 to place is considered q, wealthy
investor in Holland. These little Dutch
buyers, So desirable "a clientele and SO
important collectively must not be- CON
fused with the great fortunes Of that
country or with the spectators Of the
Amsterdam bourse, whose operations
rival those Of the plungers of the New
York stock exchange Holland buyers
OF the small class are partial to United
States Steel, Kansas City Southern, M,
K. & F., Illinois Central, Erie and
Southern Railway. ~ ..,.r
If Holland shows collective force
in the small investor France presents
III him world power. Any Frenchnlan
who has the equivalent of 800 is an
investor: When he has $1,000 he buys
government rentes usually and becomes
Of the more important class Of trent
.iers. - : The Credit Lyonaise has 420,-
600 accounts on it's books, and the az
erage deposits do not exceed $3.50.
Paternalism is a?feature. Governmental
influence favors the small depositor and
investor and the bankers cater to him.
The 100000 people of France, thanks
largely to the "woolenstockings' of
the bourgeoise and peasant classes, have
financed many a foreign and domestic
lean, and have been able in addition
to find sum equal to $2,500,0OO,OO0 to
put into Russian bonds. Into this pile
of little gold sacks our borrowers have
never penetrated to any extent, and the
recent placing Of the Pennsylvania loan
of 5O,000,000 in Paris was an epoch
marking event in International finance.
With Germany we can do little at
present, if ever. Germany's Industrial
development is much like that of our
own country. In the Deutsche, the
Dresdner and other banks, and the Men
dclssohns as private bankers, Berlin has
institutions rivaling the Bank of Eng
land, the, Barings or the English Roths-
childs or the National City and Com
MERGE banks, the Morgans, Belmonts
and Speyers of New York. But the
German banks are largely concerned
with home development or the expan-
sion Of Germany's foreign commerce,
and only a very attractive outside prop
osition will draw money from them.
In a way 1t may hurt our pride a
little to think that we need 90 abroad
for money, and it would be flattering
to think Of our country as always able
| to carry on it's great work and still
finance other countries, but this is a
rather short-sighted view Of it. Our
prestige, SO far from suffering, increases
as our fnanciers solicit loans abroad.
for Europeans recognize that demand
for money from country SO large, rich
and resourceful as ours is evidence Of
the working of the American spirit Of
progress even beyond the power Of
home finance to care for it.
Until present conditions change we
are likely to borrow more money in
Europe. The day will come, no doubt,
when, with lessening Of our speed.
idle money will again accumulate, but
at present we have work to do and
money is needed to do it; and while
our first recourse is to our own financial
centers we are disposed to 90 abroad
| if we find that, owing to extensive use
Of money in commerce and manufacture
at home and the preparation for the
crop demand that is to. come, our finan-
ciers are less able to furnish It adyan-
tageously than the bankers Of foreign
countries where progress. is slower and
the surplus of the people, unemployed
at home, accumulates and seeks profit
able outside investment. 81 5sa HI.
Watson from New York 4 81 Bank
statement very favorable especially in