Der Deutsche correspondent. [volume] (Baltimore, Md.) 1841-1918, 1917-01-10
American Companies Have Dearly


Purchased Their Experience.
Many American mining, railway
and public utility companies, who
obtained their funds in France prior
to the opening OF the war, have dear
" purchased their experience.
a far more efficient check could be
established by the operation Of a
properly organized government de-
partment demanding the prospectus
relating TO foreign securities intend
cd to be issued together With proofs
for the statements therein contained,
to be first submitted to this depart
ment for investigation and approval,
along with application for admission
for flotation in this country.
The French government is further
utilizing this power as means of
revenue. It taxes the securities
with regard TO their nominal value,
aud likewise taxes independent
therefrom the coupon or dividend
This is but an extension of the
idea of import duties as protection
for home industries to home savings.
The United States has never been
a lender country. 1t never had a
very large class Of investors. But it
is lender country now, and it's in
Yestors need protection
The United States has created by
this war q number of enemies, and
however amicable, in q diplomatic
sense OF the world, our relations with
foreign powers may be for the mo-
mcnt, we can i'll afford to throw away
an element cf power OF such portent
as the power to give or to deny the
admission Of foreign bonds and
stocks.
The AnglO-Japanese Combination.
Cen. Scott, who no doubt is one Of
our most competent soldiers, is now
demanding an army Of 100000,
and substantiated his demand by re-
peatedly and distinctly referring to
the Anglo-Japanese combination as
combination OF potentially enemy
powers. II an authority OF such un-
disputed standing deems * an inn
rerativc necessity OF mobilizing q
Fighting force OF 3,000,000 men, II is
indeed necessity not less impera-
tive to husband our resources and to
make use OF our right to give or to
deny credit.
Allies Interfering With Our Exports.
But there is an additional reason
that makes the adaptation OF such
laws particularly eXpedient at this
very moment. The Allies are already
III the most serious manner interfer-
/ ing with our export, blacklisting our
merchants, keeping our mails, in
yading the threemile radius along
our coast, and threaten us openly to
| put us at disadvantage with regard
to trading after the expiration OF the
war. They arc doing this at time
when their military forces are en-
guged elsewhere As soon as their
military forces will be freed the
! tiado war Waged upon us may or
! may not adopt serious dimensions.
A Most Powerful Weapon in Hands
OF President.
| The power OF our government TO
I give or to deny credit" the right
OF admission OF the bonds OF these
foreign and potentially enemy pow
crs now dependent on our credit,
may form most powerful weapon
in the hands OF our Executive after
J the war and likewise as powerful
acccelerator to bring peace about
and to be used as and when expe-
dient
Naturally in case Of so-called
guaranteed loans the authority OF
I such government department must
o2tend automatically to the accept
ance or refusal Of admittance of any
collateral security Otherwise this
country would be flooded with all
the fifth-rate railway bonds Of half
bankrupt South American and other
provincial governments now held by
! Belgium, France and England.
This protection is the more needed
! Just now, the more the Allies indi-
vidually and Jointly win be conlpeil-
/ cd TO come here for further credit.
Legislation Would be Purely
Domestic.
And by such means we could use
our savings 10 help countries which
give US commercial preference, and
VIC could strengthen our economic
and military allies economically and
militarily, so that finally the Monroe
Doctrine Will become reality,
backed up by the guns Of American
dreadnoughts and not by mere notes.
This legislation would be purely
domestic
From fiscal point OF view, il
would make the foreign borrower, q
potentially foreign enemy pay to-
wards the building up Of our de-
fensive forces
Il furnishes our Executive with an
additional Ineans-apnit from an
EMBARGO on fOOd---to enforce peacc.