The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1909-07-12
WHY EUROPE LIKES
AMERICAN STOCKS
Returning Confidence Gives Our
Securities First Place in
Foreign Circles.

The interest of Europe in American Sc
curities Is today more widespread than
II has been a. any time since the United
states has become a power to be reckoned
with in the economic progress OF the
world. For this there are two main rca =
sons, the primary one being the trcmcn-
dous existing and potential resources of
the United States, Offering opportunities
for investment on a stable basis with n
higher return on the Investment than OBJ
| talnahle IN Europe on securities having
the same amount OF stability: and i'm ad-
oltlon. our securities possess the possibil-
lu.es OF increment IN value. owing to the
greater possibilities for expansion OF earn
| lhss. The second reason is that owing to
financial legislation in England as well
as on inc continent. capital In the three
| most important financial ccnters of Eu-
| rope is scared about its home investments
and turning its attention 10 foreign mar
kets, saws Hayden Stone e. company
for instance. In England a proposal TO
taN the unearned increment OF real es-
tatc mas caused n storm or indignation
among capitalists who formerly made In
Nestments only in their home securities
ana VINO nave now turned their attcn-
ton TO the highest class or American
pchoS ana Stocks. In Germany. the H.
henclai necessities Of the government
nave caused a very great Increase In
tnNauon and a great deal OF this new
taxation is specifically directed against
transactions on the exchanges whether
such are of an investment or n specula tive
nature, and the governmental supervision
or or the stock exchange transactions is
becoming so inquisltorlal that many OF
the German bankers prefer to direct their
clients towards our market
In France, the increase OF interest In
our securities has assumed larger pro
portions even than In England or Ger
many. Until a few years ago French
bankers employed a large sum of money
purposes: that is to say, they wouId take
an interest in a new enterprise liauidate
at profit or at loss as the case might
be and then turn 10 some new opportun-
lily. but our securities seldom found a
permanent lodging place among French
Investments. AS a result Of the virtually
heipIess position of the French market
curing the Russo-Jap war, the French
bankers at last recognized the folly OF
placing their financial eggs In one bas-
Ket; and when the panic OF 1907 in the
United states took place they turned to
our securities for the first time as invest
ors, and feeling more than satisfied with
thelr investments are now eager and will
ing 10 Increase their commitments Tn
III very recently the French government
which maintains paternal supervision
over securities dealt in by the French
pubic mas assumed practically prohib-
tory standpoint toward American invest
ments, but IL looks now that, in rccogni-
tion OF the great interest of the French
public in our markets entered into In
spite of the opposition of the government,
1t is willing TO recede from Its uncompro-
missing attitude, and before long the Sc
properties should find recognition on the
French exchanges
There is naturally some disappointment
TTeg;arding the delay in the listing of the
United states Steel stocks. The DELAY is
uTdoubtedly due to political interference.
chiefly fear of the Socialist party. which
terrorizes the government as we'll as the
unwilling public. Holland has liquidated
a great many Of its stocks acquired in
1907 and the carly part OF 1908, and is
patiently waiting for an opportunity 10
chasing other securities which promise
an equally good chance, and I'm the mean
time has invested the proceeds n good
Regarding the level of prices for the
American railroad stocks the general
opinion seems TO be for the time being
that II is high enough, but IL the crops
should be satisfactory a further advance
OF considerable Importance can be expect
ed toward the end of the year. The more
speculative element in the banking com
munity has invested largely i'm American
industrials on the theory that the we'll |
companies have shown great |
strength during the depression and re-
markable recuperative possibilities. There |
is also decided tendency to make In
Vestments In companies developing our
natural resources. whether they be mines. !
important factor for our market, as Ii |
will increase the marketabiity Of securi- |
ties based on same.
To sum up. sentiment as well as actual |
conditions abroad favor our markets Con-
fidence has been restored and II man |
ayers of our corporations, whether rail- |
road or industrial companies. will stick |
TO the conduct of the business entrusted |
70 their caro- and will give as much pub |
licity TO their affairs a is consistent with |
good business judgment. and If our finan- |
cia1 leaders and the multitudes OF bankers |
and brokers affiliated with our cxcha |
will insist in enforcing clean and broad |
minded business policies. they will find a |
full and generous cooperation from Eu- |
ropcan bankers, and consequently the |
enormous number of their individual cli- |
ents. large and small, whose funds con-
stitute the great reservoir OF the worlds |
surplus capital.