Evening star. [volume] (Washington, D.C.) 1854-1972, 1915-10-17

49, - - O~
phere-that is. to pan-America tpan.
America is not supposed to include
Canada)-that the United Kingdom
turns while ali her energies are direct
ed to making war. The United States
in all circumstances Is sure source
of income. The amount is now dimin-
ished because Of the huge volume OF
securities which have been sent back
to this country for sale because the
original holders need money. but all
more than s.. 900. ooo. 900 Of American
securities held in England, and the
British investors think so well of them
that they are not willing to part with
them even temporarily as a collateral
security to be intrusted to their gov
eminent for Anglo-French loans. 1t is
likely that the United Kingdom will
continue to draw very good income
On the South American continent the
British investors were suffering some
loss of dividends even before tho war
broke out, because OF the Industrial
and commercial depression. This was
accentuated in the months Immediately
following. but there has been a steady
Improvement in most of the countries.
This is in particular true OF the Ar
gentine Republic, where British in
vestments in railways and banks are a
most profitable source of income.
Brazil has not been able to pay much
on tho British capital invested in new
railways and other enterprises. and
may not for a year or two more: yet
the commercial prospects are improv-
ing there. too. The most expensive
railway IN he he G..
Paulo coffee line. pays handsomely.
The English Investments in the Chill
can nitrates suffered at the beginning
of the war. and some Of them may have
to go a year longer without the GUS
tomary dividends; but the underlying
security Is sound, and there is little
real loss.
Bolivian tin mines and railways.
which are largely owned In England.
are also beginning to show profits after
a temporary depression.
The income in the form of interest on
loans to the different South American
countries has not been materially less
ened. This Is a very important source
Of revenue to English investors. All
the South American countries have
met their interest payments. Brazil
had to have an extension of her loan
through the Rothschilds. but there has
been no failure Of interest payments.
Mexico, in which there are heavy
British investments. of course, has been
a losing proposition during the last
year to most of the investors. Yet. in
spite of the disturbed conditions, the
oil interests are understood to have
made money: SO that there may be no
net loss in the interest returns on the
conffa1 n Resides
there is the prospect of getting tho
claims for the loss of property during
the last four years adjusted whenever
the United States is willing to take the
chance of recognizing a government Of
Mexico.
The British investments in the Gen.
trail American countries have felt the
economic depression, yet there has been
no default in interest payment on loans,
and some of the private enterprises
have been able to show a profit.
Much English capital is invested in
Cuban railways and sugar plantations,
which pay exceedingly we'll.
The income from the British invest
ments abroad goes to the people of the
United Kingdom, whose capital it 10
that is invested. 1t therefore becomes
a source of revenue to the nation as
much as II the securities were owned
by the British government itself.
There is also a direct contribution to
the government. This is the income
tax.
The principle Of the British income
tax is to collect at the source. No
Britisher living in any corner OF the
world can escape this tax. No British
money. wherever invested, can avoid II.
It is as certain as death.
In the latest fiscal legislation pro-
posed by the British chancellor of the
exchequer 40 per cent is added to the
existing income tax rate, and the ex-
emption limit is reduced to $3.50. There
are many British subjects residing
abroad whose income will be brought
within the tax rate by this provision.
but much larger returns will be re-
ceived from the collections on the in
comes of the people of the United King
dom derived from their investments In
securities in the United States and
South America and other foreign coun-
tries. British investments abroad
therefore become an additional source
Of war revenue.