Amarillo daily news. [volume] (Amarillo, Tex.) 19??-current, 1912-02-24
UNITED STATES
CAPITAL IDLE
Seeking Place for Invest
ment in Some Foreign
Country

the largest of national banking
houses qualities him TO speak or IL
nancial subjects, is the first banker
who has ventured to say for pubhca-
tion that he believes the Investment
of American capltal in German ana
Prussiar loans now amounts TO. MI
Kahn is careful rot TO fix a maximum
amount. but he did say shortly Gi'er
his arrival from Europe that he felt
certain that more than hundreu
millions of American money had re-
Gently found investment IN German
ltans.
In December yaiitls estimates
were made of the amounts of Ameri-
can money which went TO Germany
One or two fixed the amount as high
rs a hundred AID fifty millions. The
estimate had unusually good facili-
tics for learning what the investment
mas been his statement OF minimum
amount of a hundred milliC ms Is ac-
cented in financial districts as ac-
ctrate.
There are many surmises as to me
manner in which this money mas
been invested A part OF 1t, although
presumably not a very large portion
has gone into some long tire in-
vestments in the Prussian ard I'M
perial German loans. Three million
dollars Is spoken OF as the aggresate
amount of investment OF that kind
Some of the American banking
houses are investing large amounts OF
money In Germany upon call. There
have also been heavy discounts OF
what are called finance bills. \ ma
iority OF the loans made last sum
mer were of this character. some
of our bankers say that II Is rather
unusual to lend money &c foreign
banking institutions upon call; that
is method usually RESERVED Tor
loars which brokers aud spectators
make Other bankers are persuaded
that loans of this kind have been
made in the past.
The magnitude Of the credits
which we have established In Europe
has made Is possible 10 negotiate
loans Of this kind with Germany
without IL any serious manner In
terfering with our own money mar
kets Some have though that this
unusual. even unprecedented. bus,-
ness of American capital In great
amount In Germany is a transaction
which should be carefully studied by
an investigating committee which is
animated by a sincere purpose TO M
tain good Information respecting pre-
vailinr financial and monetary con
fitions.
The Flow of Capital.
Two reasons are given for this
movement OF American money capital
TO the continent 81 Europe. One
which naturally suggests itself Is the
magnitude of idle capital which ts
now carried I'm the United States II
Is frequently said that we have be-
come. temporarily AZ least, the cas-
lest and the greatest money market
in the world. That is due 10 our erea'
accumulation of capital So the
bankers say that this capitol is seek
ing some investment which will make
some return In the way Of income.
Another Interpretation which is bas'
ed upon fundamental financial eco
nomics Is that American capital Il
somewhat timid. Mr.. Kahn seems
TO have limited at that when he spoke
OF an investment of more than a
hundred millions OF American mon
ey in German loans at this time. He
is quoted as having said that "capi-
tai won't fight; capital can't fight;
but IL can run away faster than any
sprinting thing" This definition
sounds exactly like Mr.. Kahn, lie
frequently expresses sound financial
ideas In epigrams that have hall
humorous twist and. as he thus spoke
OF capital almost In the same breath
in which he spoke OF the movement
of hundred millions of American
money 10 Germany, II has been fair
Inference that he has thought that
this feature of our financial activ-
ity reflects something Of the tim
idity of American capital so far as
investments in large amounts In
American UNDERTAKINGS are con-
cerned.
Timid English Capital.
Many reports are received In this
city to the effect that English cap
ital, by reason OF political conditions
In Great Britain ard the prevailing
disposition very heavily 10 tax
wealth, is departing from Great Brit
ain and in currents OF unprecedented
size. This testimony comes from SO
many sources which are considered
good that in this city II Is believed
10 be justified Therefore. N Mr.
Kahn's limitations be correct .hat
American capital is departing 10 Ger
many because OF prevailing timidity
and II those who have testified that
British capital is departing from
Great Britain for like reason are
not mistaken. then the world is hav'
inr an unusual object lesson which
teaches the real tlmidity Of capital;
or. as Mr.. Kahn says. the ability "a
run away faster than any other