Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-02-11
Member of German Reichstag
Discusses Foreign Securities.
OPPOSED TO LISTING THEM
Says Movement Of Money Out Of
Country Raises Interest Rate.
PLEADS FOR HOME CAPITAL
Americans Reprimanded for Not
Keeping Their Securities on
Their Own Market.

BERLIN February l1.-Count Won Kan
itz. conservative. in the rcichstag TODAY
irterpellatetl the government regarding
what measures IL proposed to take to pre-
vent the flooding of the German market
with foreign securities. When the count
recently gave notice that he would male
this inquiry he was supposed to have IN
mind the current report that the Berlin
Handelgesellschaft contemplated making
an attempt to list the stock OF the Chr
cago. Milwaukee and st. Paul railway
on the Berlin boerse. 1t has been semi
officially announced that the Prussiau
government was considering the advisa-
bility Of rejecting the application for this
listing il made in view of the condition
of the German gold market
Count Gives Figures.
Speaking on the question today Count
Won kanitz quoted figures showing the
great increase In the listing Of foreign Sc
curities locally in the past few years and
demanded that German capital In the first
instance shall subserve German economic
interest. He continued:
THE movement OF capital out of the
country necessarily raises the interest
rate In Germany. The big banks prefer
bringing out foreign issues to exploiting
German loans. owing TO the bigger profits
thus secured. Ii is astonishing with what
carelessness second-rate foreign paper j.
admitted 10 the German market. The Sc
curities of the Chicago. Milwaukee aud
st. Paul railway belong ostensibly to the
best class OF investments and pay per
cent. but it is asserted without contra
diction that this railway recently shows
reduced earnings and that its dividends
are kept up 10 per cent only I'm order
not TO discredit the large sums placed in
Germany. This and other American Sc
ctlrities show fluctuations unknown In
Germany.
Chides the Americans.
"Why do not Americans keep these
curties for themselves? They have more
money than we have. They do not find
any railway material in Germany. The
high tariff renders this impossible and
the Payne tariff law permits the raising
OF the rate against us to a maximum Of
100 per cent.
THE investment Of German capital in
American railway securities only places
this capital at the disposal OF tho ASnsrA
lean iron industry. which compstes With
y in south America. Thus the German
stock market Is rendered moro dependent
than ever upon the New York Stock
Exchange and this dependence has a..
ready become very marked. We have
no reason to show a conciliatory opirie
toward Americans. who have not treated
US with especial amiabilty.
Alleged vexing Regulations.
After. Increasing their schedules they
have issued all kinds of vexing tarie
regulations. Accordingly. we have nd
occasion to dispense with a careful in.
vestigation of American railway secure
ties or to admit them open-handedly out
of pure friendship Foreign securities
must be admitted only when first the
home demand for capital has been fully
met: second. national advantages are
to be gained and third, these securities
have been selected with the greatest
care.
General Prohibition Useless.
Replying, Herr Delbrueck. Prussian
minister of commerce and industry. said
that the general prohibition OF foreign
investment offered to German capital
would be useless. but we are i'm posi-
tion,' he continued. Ito place restrictions
upon them. though foreign investments
are often necessary for political reasons.
The German people produce annually at
least 81 .tsD.0G0,MW of surplus capital.
which must be invested abroad when nor
absorbed at home The possession of
foreign securities has great importance
from the standpoint of preparedness for
war, hut limitations must be placed in
order to prevent injury to home interests.
THE recent increase in foreign invest
ments renders greater caution necessary