New Britain herald. [microfilm reel] (New Britain, Conn.) 1890-1976, 1917-01-27
Henry Glen S
Weekly Letter
Especial to the Herald.)

Especial to the Herald.)
New York. Jan. 27.-The most i'm
portant financial event of the week
was the Offering of the $250,00o, 900
British collateral IL per cent loan
upon a 6 per cent. basis. AS ex-
pected 1t is being well received, not
withstanding fear in some quarters
that this market was becoming sur
feited with foreign issues. The excep-
tional character of this loan and the
collateral behind 1t insure success.
These foreign offerings are a signifi-
cant departure for the United States
and are convincing illustration OF ma
tional progress and maturity. While
they are the direct consequence of
war, they mark a distinctly new era
on our financial relations with the
rest of the world. 1t has long been
apparent to business leaders that this
country must have at all hazards q
foreign outlet for its surplus manu-
features, or else dangerous indus
trial depression. It has also been
borne In upon us that we must have
our own banking facilities, that trade
follows the loan; and that, II we wish
to secure foreign markets and a share
in foreign enterprises, we must be
prepared to finance such operations,
not merely to lending but actually to
investing our funds abroad. So far
American investors have not taken
readily to foreign securities, but a
change Of attitude In this respect is
necessary, and a campaign Of educa-
ton will have to be undertaken be-
fore such investments find a, general
outlet in this country. Home securi-
ties will naturally receive preference
for years to come, but other countries
have made handsome profits out of
their foreign ventures, and there is no
reason why we should not do likewise.
Moreover, the disposition of ous,
various legislatures to embarrass and
penalize the home investor at every
opportunity will tend to drive Ameri-
can capital into foreign enterprises,
where 1t will receive more friendly
treatment and where the returns are
often attractive and security ample.
It is in this way only that we can per-
make the United States as
sumo the place as a worlds financial
power to which it is really entitled.
Two developments this week con-
tributed to diminish Stock Exchange
activity; first the leak investigation.
Nv
cerned the wisest course Is to well
come fair and competent investiga-
ton.
The second event. which at first
nearing chilled the stock market, was
PRESIDENT Wilson's remarkable ad-
dress to the senate on the terms of
making and keeping International
peace. This appeal will go down into
STOW
political documents ever proclaimed.
from a disinterested and the
most influential neutral power, 1t
must ultimately carry great weight
With all parties. The very storm of
discussion which it aroused is testi-
nony as to it's great force 1t is
chiefly as being too idealis-
ic and impracticable. But that is
aid Of all great. movements which
originate in lofty purpose and are
lif1cult Of attainment. Some Of Mr..
Wilson's terms such as peace with
,ut victory" freedom of the seas"
ETC., are really too vague and should
,e more clearly defined. Perhaps this
vas Intentional on the part of our
president. and his ideas may have
been presented thus for the purpose
If stimulating discussion. Whatever
nay be said about the message, it has
served the highly humane purpose Of
the worlds hunger for
oeace and coming from a great out
side authority carries infinitely more
weight with all belligerents than it
could possibly have done had 1T en-
mated from any group of belliger-
,nts. From now on the peace debate
will develop with growing intensity,
ind when all sides have finally made
Known their wants, a working basis of
adjustment will probably have been
reached, the United States having
done its part as peace
maker. We cannot expect to have
any share or vote in deciding those
terms; yet we may in fact be a party
10 whatever plans are adopted when
The present horrible carnage has
ceased. The relations between the
world nd ourselves have become so
permanently intimate that it is i'm
possible to continue the obsolete pol
icy of mo entangling alliances for
we cannot forever enjoy the advant-
ages of international intercourse and
at the same time shirk it's response
bilities.
The great demand here for capital
is plainly shown by the pressure of
new flotations on the security mar
llets. In 1916 the total new issues ag-
gregated $2,185, 100000, much the
largest total ever recorded except in
1912, when the amount was $685.
100000. The total applications for
January will undoubtedly be unus-
ually heavy quite apart from the BHit
ish loan. OF late there have been
many new industrial issues in the
United States, accompanied by a sig
nificant absence of railroad issues.