The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1912-07-12
Timidity of Capital.

L
political agitation prevails, is q condl-
ton which may be criticised, and yet it
Is historic fact. In 1878. when congress
was perfecting the silver legislation iden-
tilted as the Bland silver law, some of
the great capitalists of the country. men
who were prominent both as Democrats
and as Republicans. became very timid.
Samuel j. Tildcn, who n year earlier had
been the Democratic candidate for presi-
dent and had received q popular plurality.
was so greatly disturbed by the Bland sill
Yer law that he began to make Invest
ment OF his wealth in foreign securities.
He bought a great deal OF foreign eX
change and with this exchange purchased
English consols. He was fearful lest
would greatly depreciate his wealth. AS
politician he was a man OF superb
courage. as capitalist he was excessive
Is timld.
On the other hand, Governor Tilden's
lifelong friend, Wilson Hunt, stanch
Republican, very prominent In railway ac-
uvlties. also madc investment Of a con-
siderable portion Of his wealth in a Sc
Mr., Hunt bought nearly a million dol
lars In gold. He caused that gold to be
placed In the vaults OF one Of the largest
banks of New York contemplating the
possession of that much wealth, secure
and undisturbed whatever the effect upon
tho rest OF his possessions due TO the IN
lection of silver into the currency might
be-
The presumption has been very strong
that no small part OF the American money
capital which has gone to other parts
OF the world represents the tinDdity Of
that capital. And It is also said that this
tlmidity Is due to the fenr that agita-
tion will affect railway and some Indus
trial properties. To many of our bust
ness men this timidity appears sensecss.
But criticism OF that kind does not affect
capital.
In addition to the investment OF large
amounts OF American money capital In
rp n hn ua ha a
been building UP large credit balances
due to the favorable condition of our for
elsn trade, Apparently the credit bal
ancc on the entire foreign commerce OF
the United States during the twelve
months of the fiscal year just ended is
considerably In excess Of six hundred
millions. From that sum must be de-
Quoted, OF course, the invisible charges
We heve paid for ocean freight, insur
apce, dividends and interest upon for
eisn investments in American securities
and travellers letters OF credit. But
whatever may be the amount OF these
invisible charges IL is unquestionablc that
there Is still TO be left a very large credit
balance for the United States.
May Be Change
1t is not improbable that this umldity
may pass away by the close OF this year.
The best judges are convinced that the
United States was never in a eounder
condition OF financial and economic
ncdltn CndD II is at the present Time,
Therefore, X any apprehension due TO
presidential politics should pass away by
the time of the presidential election, and
II the present promise OF the crops
should be realized in the fall. 1t is In
evitable that industry and commerce will
be wonderfully quickened There will
also be a disposition to buy good stocks.
and We may discover that the recent
tendency OF the investing public to make
purchases of Industrial securities may
develop into a movement Of very large
proportions. In that case the United
States will have need Of practically all
OF our available money capital. 1t may
be necessary therefore. To utilize our
credit balances in Europe and. as rapidly
as possible, withdraw the money which
we have lent the German bankers and to
France. II in the year 1919 the effect OF
the completion OF the Panama canal and
OF our own interior waterways. the i'm
proved Erie canal and even the Cape
Cod canal, justifies present expectations
and II political demasogy ceases to
frighten capital, there will be abundant
opportunity In the United States and full
acceptance Of the opportunity for all Of
the American money capital available.