New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-02-12
AGAINST FOREIGN STOOL
Count Won Kanitz Would Bar 4,
Paul from Berlin Boerse. y
SPEECH IN THE REICHSTk
Demand Made That Germs,
Capital Should First Subserv.
German Economic Interest

Berlin, Feb. 11.-Count Won Kant.
Conservative. IN the Reichstag tod.
interpellated the government regardi,,
what measures 1t proposed TO take |.
prevent the flooding OF the German ma,
ket with foreign securities. When q,
count recently gave notice that he won,
make this inquiry he was supposed N
have in mind the current report IN,
the Berlin Handelgesellschaft oontes
plated making an attempt TO list o.
stock OF the Chicago, Milwaukee & 8
Paul Railway on the Berlin Boerse.
has been semi Officially announced II,
the Prusslan government was conslds
ing the advisabiity OF rejecting the a,
plication for this listing II made. in Va,
Of the condition OF the German gd'
market.
Speaking on the question to-day Cou,.
Won Kanitz quoted figures showing D.
great increase In the listing CT forelr
securities locally I'm the last few yean
and demanded that German capital N
the first instance subserve German co.
nomic interest. He continued:
The movement OF capital out OF "a.
country necessarily raises the ntere.
rate in Germany. The big banks prefs
bringing out foreign issues TO exploitir,
German loans, owing TO the bigger profit
thus secured. 1t Is astonishing wiz
what carelessness second rate forein
paper is admitted 10 the German mar
ket. The securities OF the Chicago, MI
waukee e. st. Paul Railway belong o.
tensibly to the best class Of investments
and pay per cent but 1t is assertet
without contradiction that this RAILWAY
recently showed reduced earnings, All
that It's dividends are kept up TO pc,
cent only in order not 10 discredit H.
large sums placed in Germany. This an9
other American securities show fiuctus.
tons unknown in Germany.
Why do not Americans keep ,hes
securities for themselves They hsy.
more money than we have. They d
not find any railway material In Ger.
many. Their high tariff renders Ii.
impossible and the Payne tariff law per.
mits the raising of the rate against Us .
a maximum of 100 per cent The inves,.
ment OF German capital in Amehz,
railway securities only places this capln
at the disposal Of the American ire
industry, which completes with oun 4
many overseas markets, especially
South America. Thus the German stocs
market Is rendered more dependent tia,
ever on the New York Stock Exchanss
and this dependence has already becons
very marked. We have no reason d
show O conciliatory spirit toward AmG.
leans who have not treated US with espe.
cial amiability.
After increasing their schedules thtY
have issued all kinds Of vexing TART
regulations. Accordingly, we have no
occasion TO dispense with a careful In.
vestigation OF American railway securi.
ties or to admit them openhandedly og'
of pure friendship. Foreign securities
must be admitted only when, first, II,
home demand for capital has been full
met: second, national advantages are 4
be gained, and third, these securiie'
have been selected with the creates
care.
Replying, Herr Delbrueck. Prussia,
Minister OF Commerce and Industry, sab
that the general prohibition Of foreisr
investments offered 10 German capita
would be useless. But we are in posi-
tion," he continued, ito place restric'
tions upon them, though foreign invest
ments are often necessary for political
reasons. The German people produce
annually at least S1,000,OOOOOO Of sur
plus capital which must be invested
abroad when not absorbed at home. The
possession Of foreign securities has q
great Importance from the standpoint o.
preparedness for war. but Limitations
must be placed in order to prevent In.
jury to home interests. The recent In
crease in foreign investments renders
greater caution necessary now"
Herr Delbrueck has repeatedly inter.
fered to prevent foreign listings, and 4
Is stated that the Chancellor and the
state governments are determined to ex.
ercise a regulating oversight OF the &C.
tons OF the listing committees.
The minister did not allude directly Il
American securities, but stress was laid
on these in the general debate. Most Of
the speakers manifested a hostility Y
American securities, and a restrictive
policy was generally approved.
ROMAN VILLA FOUND AT P0LA