The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1916-02-18
Business and Finances
By W. s. Cousins, Editor The American Banker

to which this transfer of wealth seems
likely to be carried is far beyond the
estimate of many people who have
been in close touch with international
conditions. European capitalists have
not incorrectly decided that funds and
securities placed in America are in ex-
cellent safekeeping compared with
those in the storm-ridden European
cities where the greatest degree of I'M
certainty exists as to the safety OF
property of any kind. Then again,
there is the terrible burden of taxation
which is already making itself felt in
the depletion of private fortunes in the
belligerent countries, and to escape
which European investors must turn
to the only avenue of escape, namely,
the investment of their funds in a
land of peace and security
American capitalists, we are told,
are constantly seeking tax exempt Sc
curities for the double reason that
they are as free from publicity and
public scrutiny as they are from taxa
ton by either state or municipal au-
thorities. These two factors now APP
peal quite strongly to the European
investor, who would conceal the
exact amount of his personal wealth
| from the prying eyes of government
officials, and who would preserve as
much Of it as he can for the purpose
of rehabilitation after the great storm
has blown over Thus far the influx
of foreign capital has not affected the
security markets to any particular ex-
tent, and indeed it is not likely that
the course of the market will be great,
ly influenced by it.
Investments.
| There has been a noticeable decline
in speculation and general recession
in the price of many of the speculative
stock issues which were such an i'm
portant factor when the tremendous
profits in war issues" were so con
spicuously paraded before the gaze o
investors. When the companies al
fected failed to measure UP to thu
promises of their sponsors they los
their popularity with investors, ant
thus they have been unable to regain
what they lost.
The public interest in the bond mar
ket has not declined, but the inquir,
| for good securities is sufficient to sus
| tain prices and materially reduce TIL
floating supply of bonds. An interest
ing development has been the substi
tuition of long-term bonds for short
term notes as a medium for financin
new requirements. The short-terr
note is still popular, but for the frs
, time in several years it is falling int
, comparative disuse, owing to the bel
. ter conditions which now prevail. Thi
, marks a striking change in the invest
, ment situation and is all the more re
: markable when it is recalled that dul
] ing the past year American investor
: and investment institutions hay
I bought back billion dollars worth {
foreign-owned American securite
and in addition have invested anoth,
billion dollars in securities put out b
the bel,igerent and neutral govern
ments. The absorption of all thes
securities without detriment to ii
American market must be regarded {
one of the striking movements of ii
entire war period.
New Foreign Loan?
The recent departure of a numb,
Of our prominent fnanc,ers for Loi
don has revived the rur'ors that ne