The Washington times., 1911-01-08
FOREIGNERS BUYING
AMERICAN STOCKS
Restrictive Measures Are Ac-
cepted as an Assurance
Against Frauds.
By HENRY cLEwS.

NEW YORK. Jan. S.-F'unds are plen-
tiful and there Is every prospect that
EuroDe Will he Il good buyer of securi-
ties during l9i1. This is particularly
true of London, for the reason that
Great Britain is enjoying extraordinary
prosperity and will have correspond
inGly large amounts for investment.
The disposition of foreign buyers to-
ward American investments Is becoming
distinctly more friendly. While the hos
tile attitude manifested toward capital
by our various branches OF government
national, State, and city-is disliked
over there, this feeling is largely IL
not more than counberacted by recogni-
ton of the Increased safeguards which
are at the same time being brown
around American investments
The fact that many of the expIoita-
tions which disGraced our financial oper-
atlons in previous wears could not be
now repeated, together with the many
restrictions now imposed upon new Is
sues. have done much to regain the con-
fidence of foreign investors in Ameri-
can securities.
1t is no eXaggeration to saw that the
foreign outlook for American invest
mentS IS exceptionally favorable, ard
enough so 10 prove an important ele-
ment of support.
In the local situation there is also
considerable betterment. This must be
credited to the growing case in money
and better Investment conditions. There
has been a much enlarged demand for
bonds, especially those exempt from
taxation, and the low prices at which
many good issues can be had make
them seem exceedingly attractive In
comparison with current rates of in
tereSt. The same remark applies to the
better class stocks whose dividend
paying abilities are beyond question.
Trust Cases Will Not Down.
The stock market, however, is inevi-
tably influenced by the somewhat un-
satisfactory conditions OF home rfade.
by the delay of tobacco and oil de-
cisions, and by uncertainty as to what
action will be taken by the Interstate
Commerce Commission in regard to an
advance in railroad rates. AS soon as
these questions are out of the way the
stock market should exhibit increased
activity. While an early decision from
the Supreme Court is highly desirable
there would seem to be no occasion for
special uneaSfnesS regarding the out
come of these cases. Should the de-
Cisions on tobacco and oil be unfayor-
able no great harm would result. The
production and consumption Of oil. to-
bacco and all other products would go
on as before; only the forms of or
ganization would be changed.
Railroad Cases Serious.
AS to the railroad cases, they are
really more serious matter. Since the
roads have been forced to make conces-
sions 10 labor, estimated at between
S1O0, 100000 and Sl50OO0, eco year, it
seems perfectly reasonable that they
should be permitted to recoup at least
portion of this loss through the means
of better rates. Certainly there is no
justice in expecting stockholders to
stand the entire burden, which is be-
coming more and more evident; as the
show heavy and significant losses in
net earnings. Under. the circumstances
it seems probable that the roads will
obtain some concessions, for this would
be good policy on the part of the Gov
ernment, and the readiness with which
the Western roads last week granted
an advance to their employees suggests
that railroad managers entertain eN-
pectations of this character. A favor
able decision will unquestionably have a
widespread effect upon business. Rail-
roads which are now economi3ing in
many directions will have to retrench
still more severely should no advance
be permitted. This would mean the
throwing out of employment of a iarg"
number of hands. 1t would also mean
a contraction in improvements and
further reduction in the employment OF
labor.
There is no prospect of any prolonge1
rise in values or any unusual activity IN
the market until the conditions of gen
eraT business improve: but the financial
situation is generally sound, and
more cheerful sentiment prevails every
where, and these are factors which can
not fail to have at least a moderately
stimulating effect upon values.