The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1912-07-10
GOES TO EUROPE
Holland Says Money Is Afraid
of American Legislation.
Agitation Against Corporations
Makes Capital Timid.
MONEY IS COMING WEST
This Is the Season When
Stream Flows This Way.
End to Financial Unrest May
Come This Year.
MONEY is COMING WEST

New York, July 1O.-However diligent
and persistent the attempt to learn
how much American money has zone
out of the country in the past two
years, nevertheless accurate informal
ton cannot be secured, since there
are only private records to these trans
actions The Pujo committee, if 1T were
to carry on it's Investigations on this
line. would find it impossible, probably,
to obtain information which would re-
veal to the country the aggregate
amount of American money sent to
other parts of the world not in the
course of trade or in the settlement OF
trade balances, but for investment or
for financing.
Yet it has recently been frequently
said by men of finance that If the
American people could get accurate
information as to the amount of money
which is now going out of the country
and has been so doing for two years
the information might cause the people
to sit up and do some thinking.
There have been exaggerated reports
which told of the amount of money
held at any one time by the bankers
of New York on deposit for the credit
of banks in other parts of the country.
One estimate frequently made has been
that New York banks in the early
spring have sometimes held as much as
a hundred millions, or even hundred
and fifty millions on deposit to the
credit of what are called the country
banks. But the best informed of our
bankers shake their heads emphat1cal-
~ when these figures are mentioned to
them. They are inclined to the opinion
that not at any one time have the
banks of New York carried in their de-
post lists as much as fifty million dol
lars representing funds deposited by
country banks here. We are approach
ing the season of the year when these
deposits, especially those made by
western banks, are being drawn upon,
since the home demand for money with
which to finance the crops is soon to
begin. But the movement of money
from other parts of the country to New
York in certain season of the year,
particularly the late winter and early
spring, is similar in some respects to
the movement of money out of New
York across the seas. Western and
southern money comes here at certain
seasons of the year because it can earn
more than is possible in parts of the
west and of the south. American money
has been sent to Europe because the
security offered is perfect, and the pro-
fits are fairly acceptable.
More Than a Hundred Millions.
One of the estimates. confessedly a
rough one obtained today puts the
amount of American money which has
been sent to other countries within the
past two years at not far from two
hundred million dollars. It was the
general opinion last winter that the
United States had sent to Germany
possibly as much as a hundred million
dollars. More has been sent since the
winter An unrecognized and yet
steady movement of American money
into Canada, and especially into the
great wheat and mineral belts of north
western Canada. has been in progress
for the past two years.
James J. Hill said, two or three years
ago, that the railroads of the United
States needed a good many hundred
millions if they were to improve and
expand their systems, perfect their
terminals and equip them SO as to be
able to meet the demands for transport
tation which are likely to be made upon
the railroads within the next five years.
But while the United States has been
sending capital in large amounts to
Europe-to Germany and recently to
France-and to Canada, nevertheless
the railroads are unable to secure capt.
tai in any large amount and for long
periods of time needed for these i'm
provements. A year ago there was a
curiously paradoxica1 financial Situa-
tor in the United States. Some of our
railroads were borrowing money in
it upon reasonable terms in the United
States, while at the same time the
United States was lending money to
Germany and making investments in
other parts of the world.
The Timidity of Capital.
The timidity of capital, especially
when political agitations prevail, is a
condition which may be criticised, and
vet it is historical fact. In 1878. when
congress was perfecting the silver leg
fsiation identified 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. Tilden
who. a year earlier, had been the Dem
ocratic candidate for president and
| had received a popular plurality, was
50 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 ez-
| change and with this exchange pur-
| chased English consols. He was fearful
i lest the objection of silver into oul
currency would greatly depreciate his
! wealth. AS politician he was a mar
| of superb courage; as a capitalist he
| was exceedingly timid.
| On the other hand, Governor Tilden's
lifelong friend, Wilson Hunt, a stanct