New-York tribune., 1909-07-26
TELLS OF PROSPERITY
GATES IN ENTHUSIASTIC
PROPHET.
Returns from Europe zcith High
Hopes for the Immediate
Future Of Country.

Hitherto unparalleled prosperity. according to
| John W Gates. who returned yesterday from
Europe on the liner George Washington. is at
hand for this country Within two years he
prophesed, there will be the greatest industrial
and commercial development this country has
ever seen For more than two years. he said
the American people have been saving money.
and the small investors have been siren sthenng
the market 81 that when the tariff finally is
settled the growth of general prosperity Will be
| as rspid as It will be great
II said more than Two years ago that Ameri-
cans would wear their old clothes FOR a couple
Of years and they have been doing it, he be
gan They have been doing It. and the savings
in the old family stocking. when they dip into
II u count up. viii be surprising. The way I'm
which the proliEaiity of expenditures OF a few
years ago has been curbed is shown by the in
crease in bank deposits. Economy when 1t IS
practised in mis- country. means IA world of
money.
This is only held waiting for the proper mo-
ment Of release. In the next two or three years
this country Is going to experience the greatest
period of industrial development and prosperity
It has ever known.
Look at what has been done in the last few
years-S15 100000 spent in Massachusetts to
develop manufacturing plants and the S200,VOO,-
600 more spent by the United States Steel
Corporation on improvements. Look too. at the
development ~ industrial securities. Steel com
mon now at II and Union Pacific selling at 2oh.
Only n dozen years ago / bought a block of the
latte, stock at n price under 10.
AN INVESTING MARKET TO-DAY.
There has not been a speculative market FOR
two years-none practically in three years. From
last August to January il a iquldatlng
~ bag inv ING
market Hundreds of persons 1 know have been
buying small lots OF securities. which is one rf
the healthest signs possible for IL is the small
/ investor and not the man buying twenty thou
sand shares or so that makes the market. Most
of this small buying has been in the West and
Middle West. Securities are more
solid basis than ever before"
Mr.. Gates has been motoring with his son.
Charles Gates, through Scotland. France and
Germany, a trip altogether some thirty-hve
hundred miles long. 1t rained so much. said
Charles Gates, that they did not have dry tires
two days during the trip Mr. Gates said that
neither he nor his father gave "A thought to bus-
ness while away. His fathers healthy appear
ance made him remark TO reporters as they
came aboard: Doesn't the governor look good?'
Mr.. Gates began his talk by speaking of Ger
many.
There is more chance of a war between
Germany and England than there is Of you and
me going for six-round bout he said n
answer question. and not much Finan-
cial conditions in Germany have been rather
bad but they have improved good deal of late.
Taxes are high there. in England but think
to-day Germany is the most prosperous country
in Europe
Il don't what difference IL makes whether
steel common any other American security is
listed in France" he said, discussing conditions
I'm that country. 1T makes difference in
their value, for they worth much ..sted as
unlisted OF course, some French bankers and
steel makers will oppose the listing of Steel
common but in my judgment they probably will
be listed in the end
FIELD FOR EUROPEAN INVESTMENT
Europe now has only place to which 40
turn TO invest safely. suppose chances for
investment are good and S safe In Australia
and Argentina as here. but The inves tors don't
know IT, The countries are too far away while.
If they want TO investigate any security here.
they. can run over and back in couple of weeks.
In France more securities purchased tor
investment than for speculation. In Luying
home securities they have to be content with
2 or 319 per cent but they get almost .wice as
much when they invest their money here
rrrenchmcn will speculate as readily as we whsn
they see a chance to make money, but specula-
Continued On third