The Bridgeport evening farmer., 1917-01-29
HENRY CLEWS
 WEEKLY LETTER

WccklI IcIIEn
 The most important financial event of the week was the offering or the $250, 100000 British collateral l-2 per cent. loan upon per cent oa- sis. As expected it is being well re- ceived, notwithstanding fear in some quarters that this market was becom- ing surfeited with foreign issues. The exceptional character of this loan and the collateral behind it insure suc- cess. These foreign offerings are a significant departure for the United States and are convincing illustration of national progress and maturity. While they are the direct consequence Of war, they mark a distinctly new era in our financial relations with the rest of the world. It has lone been ap- parent to business leaders that this country must have at all hazards a foreign outlet for it's surplus manufac- lures, or else dangerous industrial de- pression. It has also been, borne in upon us that we must have our own banking facilities, that trade follows the loan and that, if we wish to se- cure foreign markets and a share in foreign enterprises, we must be pre- pared to finance such operations, not merely to lending but actually to ln- vesting 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 campaign of educa- ton will have to be undertaken before such investments find general out let in this country Home securities 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 our vari- ous legislatures to embarfass and pen alize the home investor at every op- portunity will tend to drive American capital into foreign enterprises where it 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- manently make the United States as sume the place as worlds financial power to which it is really entitled.
 Two developments last week con tributed to diminish Stock iExchange activity; first the leak investigation. So far as the Stock Exchange is concern ed, the wisest course is to welcome a fair and competent investigation.
 The second event, which at first hearing chilled the stock market, was dress to the Senate on the terms of lyo iy,c %i iv,fo inv, ,o1 peace. This appeal will go down into history as one of the most im- portant political documents ever pro- claimed. Coming from a disinterest- ed and the most influential neutral power, it must ultimately carry great weight with all parties. This very storm of discussion which it aroused is testimony jas to it's great force. It is criticised chiefly as being too ideal istic and impracticable. But that is said of all great movements which originate in lofty purpose and are diff ficult of attainment. Some of MT. Wilson's terms such as peace without victory, Freedom of the seas," etc.. are really too vague and should be more clearly defined. Perhaps this was intentional on the part of our President, and his ideas may have been presented thus for the purpose of stimulating discussion. Whatever may be said about the message. it has served the highly humane pur- pose of intensifying the worlds hun ger for peace and coming from great outside authority carries infinitely more weight with all belligerents than 1t could possibly have done had it emanated from any group of bellig- erents. From now on the peace de- bate will develop with growing intens- ity; and when all sides have finally made known their wants, a working basis of adjustment will probably have been reached, the United States hav- ing meanwhile done it's part as peace maker, We cannot expect to have any share or vote in deciding those terms; yet we may in fact be party to whatever plans are adopted when the present horrible carnage has ceased The relations between the world and ourselves have become so permanently intimate that it is im- possible to continue the obsolete pol icy of "No entangling alliances" for we cannot forever enjoy the advant- ages of international intercourse and at the same time shirk it's responsi- bilities.
 The great demand here for capital is plainly shown by the pressure of new fotations on the security mar kets. In 1915 the total rev issues aggregated $2,186, ,000, much the largest total ever recorded except in 1912, when the amount was $2,253,- O00,OOO. The total applications for January will undoubtedly be unusual 1y heavy, quite apart from the Brit ish loan. Of late there have been many new industrial issues in the United States accompanied by sig nificant absence of railroad issues. American railroads are much in need of fresh capital, not merely for equip ment and expansion, but especially for terminals; the growth of traff1c and the high cost of land in our great cities making the problem an exceed ingly difficult one for<so1ution. For the present obstruction to much needed railroad development Con- -gress and the Interstate Commerce Commission are chiefly responsible and the American people should place