The Washington herald., 1908-06-21
BANKS UPONAMERICA
What an EngliShman Saw
On This Side of Ocean.
TELLS FACTS TO COUNTRYMEN
Reviews oJr Financial and Indus
trial Situation nt n British Cor
pOratiOn Meeting - Chances at
Panic and Is Hopeful for the Eu-
ture-SOme of His Views.

What others think OF us is always inter-
esting if the person under discussion is
convinced that the other one is sincere in
offering his criticism or bestowing his
praise Robert Fleming is a rich English
man, who is well known to hnanciers in
this country. and who returned TO Lon
don recently after an extensive trip in the
United States.
A few days ago he made a report to the
stockholders Of the Investment Trust Cor
poration OF London. which has been a
consistent investor in American securities
To the corporation he had some good
things 10 say about America. some Of
which are quoted below:
AS you know from our reports. the
United States has always been the princi-
pal field in which the investment OF your
capital has been made. When we met a
year ago that country had Just expert
enced a very disastrous fall in all It's pub
licly quoted securities. and since then still
lower deeps have been reached. Last Oc-
tober witnessed a panic probably the
greatest IN the financial annals Of Ameri-
lea.
Panic Wns N Short One.
The causes leading up 10 the crisis
have been so often publicly referred to IN
this city that l am not justified in occu-
pying your time by further reference 10
them. To-day. seven months from the
worst. II would seem as II the storm had
]
iy cleared away
I have just returned from a two
months visit to America during which
saw. after several years absence. many
Of the leading cities Of the West as far as
Salt Lake City. The growth everywhere.
in town and country. is nothing short OF
marvellous In these times, when there S.
or has been. 50 much talk. as an ultimate
political end, of the abolition OF private
property, II is not out OF place that We
should inquire into the poliucal-economi-
cal conditions Of the country In which a
great part of our capital fund IS invested
Such an examination will / think. show
America TO be as safe field as any
Wrong Notions I'm England.
There is in England a notion. prevalent
TO some extent. that the United States is a
who get high wages. but have no capital
and hate the capitalist. The figures Of
savings bank deposits tell another tale. In
the Eastern States alone. including New
England. the amount so deposited at
January l. 1907, was as nearly as possible
$500, ,OOO, 900, by 6.S35. .524 depositors. averag-
ing about eSS.
The amount In our own post-ofice saw
ings banks Of the whole United Kingdom
on January !. 1907. was E156.OO0 900. among
1882, 7Si depositors, the average amount
being about El5.
III We rise In the financial scale from
the depOsitor In savings banks, where the
maximum IN America IN any account is
limited 20 $780, 10 the investor In railroad
and industrial shares, we find. almost ST.
muitaneously with the cataclysm in Wall
street remarkable evidence Of the coun-
try's Increase Of wealth and it's wider dis
tTibution
Good American Investments.
Before leaving New York was obIig-
ingly furnished by the companies concern
ed with these facts as 10 the total number
OF their shareholders.
THE Pennsylvania Railroad had, in 1906
40 49S shareholders. in 1907. 44.6l6. and in
1903 59,i0e. The Atchison. Topeka and
Santa Fe had In 1906, 17.O43: now. 24.g04
The United States Steel Corporation had
in March, 1907 So 484 and IN 1905. 92.157. and
the increase, I was told, was almost en-
tirely in American holders. Or. If one
leaves the East. where agriculture has a
subordinate place. and goes West know
Of no sight more impressive than that
witnessed in traversing the great broad
valleys Of the Mississippi and Missouri.
Backbone of the Country.
For over 1000 miles IN one direction
across the continent, as we'll as an extent
Far greater from north TO south, is seen a
succession Of comfortable homesteads.
averaging probably not more than $50
acres, farmed by the proprietor. and in
very few Of which the money lender has
any stake. These depostors. investors
and that army of farmers and planter
prOprietOrs are a mighty force for con-
servatism- Thirty years ago the granger
movement was an agitation against rail-
road rates among the farmers, and when
they got so little for their corn that II
hardly paid 70 transport II. the agitation
was not 70 be wondered at Since then
rates have been greatly reduced. Now
further dissatisfaction has arisen from
various causes-rebates. watered capital
&c.--intensfed unquestionably by politi-
cal influences, but am convinced that In
the end a sense Of fairness will prevail.
The American railway system has DDS
900 miles. 1t has been by far the greatest
agent in the extraordinary development Of
the country. Its reasonable regulation in
the public interests is just but any course
of action that Will permanently stop the
flow OF capital in the direction OF its ex-
pansion will. think, not be taken"