Der Deutsche correspondent. [volume] (Baltimore, Md.) 1841-1918, 1917-01-10
PROTECTION FOR OUR NATIONAL
SAVINGS.
ny Ernegt Hang NeufeId.

The dumping into this country or
foreign government securities to
the extent Of far over one billion
within the last two years has dis
closed very grave weakness in our
national organization for offense and
defense
For the nations funds, or saw
ipgs, form Just as important an ele-
ment OF national defense aud Of
fCnse, Of prestige strength and rela-
tive power as our army, our navy,
our Industrial and agricultural re-
sources. our commerce and the ef-
ficiency OF our citizens.
Uncontrolled by government au-
thority our national savings have
been, and are, at the mercy of any
foreign power, and subject to raids
by the agents of such foreign powers.
Our own savings may thus be used
10 the detriment OF our own poten-
tial strength, our own financial
stability
Savings Used TO Strengthen Foreign
Nations.
Our savings have actually been
taken from us to directly strengthen
the fighting power OF foreign na
tions-all potential enemies. There
b. we have been weakened in our
relative strength We are further
weakened by the proportionate dis
appearance OF capital from our home
market, and the incapacity arising
therefrom OF the home industries,
factories, mines and railways all
employing home labor. to secure
capital for the employment of his
home labor and for expansion at
home.
Tho total absence Of any legisla-
tive check against this country be-
ing drained Of its funds by foreign
governments will. il unchecked, re-
suit in similar position with regard
to our finances as already experienc-
ed with regard to our food and our
labor For the more convenient feed
ing OF foreign and potentially enemy
powers our 100000 population
is today thrown on either shorter
rations or on more expensive rations,
for the convenience OF these same.
foreign and potentially enemy pow
ers and for the strengthening OF
their more or less depleted eXche-
quer and dottering finances our own
home industries are penalized by
high rate Of interest and are prac-
tically deprived OF cheap money fol
expansion.
our Investors Have No Experience
in Foreign Bonds.
Unfortunately, our investors have
reither knowledge nor experience in
foreign government bonds They
are not able TO Judge for themselves
as to the veracity exhibited in the
prospectuses of the agents Of such
foreign powers flooding this country
with all Norts OF statements of the
| financial position OF their borrowing
principals.
The total absence of any legisla-
tive check upon such statements on
behalf OF our government and legls-
! lative machinery to cut the volume
of borrowing OF such foreign powers
here, now threatened again, gives
the latter boundless opportunities
( 60 cause tlis country losses and
damage.
European countries, particularly
\ lender countries like France and
Germany, have long realized the part
which government control OF nation
al savings gives to the country whose
! foreign investments are thus gov
crnment controlled.
i such countries utilize this power
! dipIomaticaily and politically against
foreign nations by granting or with
holding admission OF their loans.
Ne Banker Can OFFER American Sc
cuYitiss in France.
In France particularly no banker
| IL entitled to offer foreign, for ex-
| ample, American. securities; no stock
exchange is authorized TO quote
! them; no dealer is authorized to deal
lin them without specific permission
being first asked FOR and granted by
4 inc French Minister Of Finance.
The right---to give or TO deny
the admission Of foreign securities
lalyes the French Government q
strong lever in It's relation TO for
clpn powers Ia need Of credit 1t Is
tlis right on which. for the last
20 years, the political alliances OF
France, particularly with Russia
have been built This right alone
made this alliance possible. France
willcd IL to gain Russia aa q military
ally perpctually stronger and there
by TO make Germany proportionatelS
weaker
Check Upon Veracity OF Bankers.
Apart from this power OF admit
ing or refusing foreign securities
another check is required
This. too. Is partly in operation II
France.
The French government makes .
banker issuing foreign securities al
ready admitted for circulation il
France by the Minister Of Finance
and all dealers dealing therein civil,
and criminally responsible for state
mcnts made in this, the issuing ban
lSer's or dealers prospectus, circu
lar, or letter with regard 70 sucl
foreign securities.
This check upon the veracity o
bankers issuing foreign securities Il
but partly efficient The large profi
Idorived by such issues have beer
Frequently found 10 be but cheapl.
acquired BY q term Of Imprisonment
a a.