The Owyhee nugget. ([Silver City], Idaho) 1905-1984, 1909-06-18
American Securities Abroad.

That France takes bankers toll from
the world has become appreciated by
our people during the recent financial
stress; that France has stood finauci-
ally sound while tremors passed through !
every other great industrial nation in
the world has been an impressive spec
tace of the last two years. One is re-
minded by it of the unlimited resource.
fullness of the French which SO as
founded Bismark. Having by superior
military power forced his way to the
Tuileries, he sought to crush the coun-
try under the load of preposterous
war indemnity, aggregating nearly four
billion dollars, but within few short
years the sum was paid, and France
has continued financially impregnable.
She effects exchange for the whole of
Europe; like great lake the financial
streams of the Continent flow into and
out OF France; the floods are equalized,
and the great fluctuations, so charac-
teristic of American securities, are not
seen abroad. Stocks and bonds, once
listed on the Paris Bourse, are known
to have been severely scrutinized. Be
hind them exist substantial assets and
demonstrable earning power. Depend
ableness is the quality demanded by
the managers of the Bourse. In Amer
lea the speculative feature has domin-
ated the financial aud industrial sys-
TEN; hence The wild fight of prices, the
upward sweep from sudden enthusiasm,
and the collapse after the manipula-
tors unload upon the credulous public.
Capitalization here is usually based
upon highly speculative estimates of
value aud profit. Hence not single
American security had ever been ac-
copied on tile Paris exchange until Mr..
j. p Morgan the other day, through
Morgan, Harjes & Company, listed one
million shares of the United States
Steel common stock on the Bourse.
This is one OF the most notable events
in our financial development, and will
have far.reachiug influence. A new
standard OF stability wi be set for our
industrials. The further this listing
proceeds, the narrower will become the
range OF general quotations. Steel com
mon has been rising rapidly. A month
ago it was 81; at the end of May ii
stood at SO, the highest on record Mp to
that time; since then it has mounted to
50, sLeadying little within the week.
This has been due partly to the pro-
spective increase of income from the
forty-miue million dollars expended out
of surplus in constructing the Gary
plant, aud partly to the new Continent
tai market opened through the general
ship of Mr.. Morgan. 1t is believed that
one purpose OF Mr.. e. H. Harriman's
visit to France is the listing of the
stock of the Southern Pacific on the
Bourse. With the retirement of the
preferred shares, and the large increase
in earnings, it would seem to be accept
able. This new phase in American
stock transactions will benefit our in
dustrial enterprises in general, and
will open new investments in Eur pc.
Perhaps nothing could have happened
that would SO surely cause a business
revival 10 view OF the influx OF foreign
capital resulting from the purchase of
American securitses abroad, great ac-
tivlty may be confidently predicted to
follow Immediately. Possibly the re-
cent energy displayed 10y those control
ling the copper industry was promoted
by anticipation of such European aid.
} Mining Scientific Press.
.AAhAAAAA so YEARS
y EXPERIENCE