The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1915-07-09

New York City, July 3, 1915.
The last two weeks have been sew
ere testing days" for the interna-
tional money markets. The British
House of Commons, after a years
participation in the European con-
flict, approved a new war loan of five
billion dollars. The French Chamber
of Deputies followed almost immedi-
ately with a further appropriation Of
ST, l2OOO0,0OO to cover war expenses
for three months beginning July |.
This amount brings the total volume
of credits voted in France since the
war began up to $4,225, 600 900.
Though we in America have, of course
no responsibility for the successful
ttotation of these hugh loans, our
markets are nevertheless greatly af-
tected by these titanic evolutions in
the international financial situation.
Gable reports from London last week,
tor example, conveyed the informa-
ton that British investors were LIQUID
aatlng every possible security holding,
IN order to participate in the new
war loan. Though somewhat loath to
part with their American securities,
which are now considered as the most
stable investments in the world, they
are nevertheless impelled by motives
OF duty and patriotism to forego their
personal preferences and to divert the
savings into the channels which, in the
last analysis, mean the defense of the
Empire and the safety of home and
possessions.
The result has been that these prob
lens in the London money market,
due to the necessity of making quick
preparations for the new war loan,
has led to rather active liquidation
OF American securities by their Lon
don owners, precipitating a selling
movement in which some leading
American bear spectators are only
too glad to participate. The total
amount has been matter Of little con-
sequence, and ample provision has
been made for the absorption of all
the American securities that thus find
their way back home"
In this connection, the result Of an
investigation recently made by Mr. L.
f. Loree, the President of the Dele
ware x Hudson Railroad, who pre-
scntS reliable summary Of the mat
ter in question, is of great interest to
American investors. Mr.. Loree finds
that the total amount of American
railroad securities now held in Eu-
rope is about $2,500,00O,0OO, of which
$0OO,OOO,0O0 represents stock hold
ings and $l,700,000000 bond holdings
AS the total amount of industrial and
municipal securities held abroad are
comparatively small, the result of this
investigation would prove that less
than $3,0O0,000O00 of our obligations
are now in foreign possession. 1t
was figured out some time ago by Sir
George Paish, the eminent British sta
tistician and economist, that Europ-
can investors held our obligations to
the extent of $6,000,O00OO0. If this
estimate be true, the natural inference
would be that in the past five years
America has either bought or liqui-
dated $2,UUU,000,000 worth of her
debts. The probabilities are, how
ever, that Sir Georges estimate was
somewhat exaggerated. The fact that
such small quantity of these securi-
ties are held abroad is doubtless one
reason why our markets have not
been swamped with the expected
foreign liquidation. 1t will readily be
seen that if our favorable trade bal
ance keeps on at the present rate of
Sl,OOO,OO0,0OO year, we could in 3
years settle this indebtedness, allow
ing for no other method of payment.