The Washington herald., 1918-09-28
PREDICT MONEY
CENTER TO U. S.
America May Lead in Fl
nance If War Ends Soon,
Says Holland.

world. There are some. however,
who believe that this prediction
may not be entirely justified. Eng
land still possesses vast amounts or
wealth and the London money
market may not ind itself second to
that Of the United States after the
war Is ended. Nevertheless the fact
that we are TO be a creditor nation
by as much as $4,000 000,0 per-
haps $4,000, 600, 900. stands in our
favor and puts US in a position
which, in the view Of veteran men
Of finance and it is understood in
the view of Secretary McAdOO, we
may retain for years OF financial
supremacy.
The presumption is that after the
war Is ended vast amounts of
foreign securities will be placed In
the American market and probably
listed upon the stock exchange.
Should this be done and should the
stock exchange be able to maintain
that valuable liquid character which
Is looked upon as one OF the most
important assets Of the nation then
there is no doubt that there will
follow enormous deposits of money
in the United States.
Great. Britain has for years been
the chief depository OF foreign
funds and it Is in part for that
reason that foreign exchange is
based upon the British pound ster-
ling.
Big Offerings Expected.
One Of the leading authorities in
the financial district, in speaking this
morning of conditions which are like
" to develop in the United States i'm
N,H-r
there appeared to him to be no doubt
that foreign securities in large
amounts would be offered to American
investors and probably will be listed
upon the stock exchanges where an
instant market would be found for
them and where price would be es-
tabIished. First of all he spoke Of
national securities. These he believed
will come I'm large amounts TO the
United States for investment. I'm
doUbtedIy they will be listed upon the
stock exchange and will bear like
relation to that market to that which
our government bond issues have so
long held. In the next place there Is
likely to be an enormous Offering OF
foreign securities representing indus
tIial and commercial activities and
th,Fe which are regarded as prime
Of the governors OF tho stock eE-
change are also likely to be listed
among the securities permissible to
he dealt in upon the floor of the
exchange.
Excepting from the nations which
themselves operate and own their
railroads. there are likely to be heavy
foreign offerings of railroad securities
fu the United States. \ vast amount
~ money will be necessary for recon-
struCtiOu Of railroad systems, espe-
Ci-liy In the countries which have
E.0u devastated by war. And there
ave good reasons for believing that
rLlrr the war is ended several Of the
South American nations will under
{. ka railroad construction upon a
very large scale. The world. in opin-
ion of this authority, is sure to seek
the American markets for the sale of
10 small part Of the securities which
the various railroads will be COM
VCIIed to Offer for sale BY reason Of
our vast credit and by reason also Of
the fact that Notwithstanding the
CnOrmity of the expenditures which
the United States is obliged to take
for war purposes. We shall have hard
" scratched our res OuTCCS, this COun-
try will be in position to finance or
to market prime foreign securities
and many OF those transactions will
take place upon the hDor Of the stock
exchange.
Money to Come Here.
Money in vast amounts is likely
to be deposited in the United States
lust as before the war the men of
commerce, OF industry and of agri-
IN ~ Of
kept balances in Great Britain for
the purpose OF facilitating their in
ternatiOnal trade. Very few bal
ances made by the citizens of other
nations were maintained by the
hanks of the United States. This
will be changed Immediately after
the war if the view now taken is
correct. The result will be that
foreign exchange will he largely IN
terms Of dollars, and although IL is
inCOnceiva hle that foreign cN-
changes in the terms of pounus
sterling will he completely sup
planted by American doIIar-ex-
change. nevertheless dolIar-ex-
change Kill be greatly enlarged and
this will facilitate those world trade
movements which our manufactur-
ers and exporters are now con-
templating.
The stock exchange Is today the
most fluid stock market in the
world. 1t is also impersonal ana
that condition had been reached
only within the past few years.
Here settlements are made every
day. In London they are made onIv
once in two weeks Here the gov
ernOrs Of the stock exchange are
men OF great experience, Of the
highest integrity, and there never
has been a case where a governor
of a stock exchange has been false
to the trust and responsibility that
have been placed in him.
II there had been opportunity at
the meeting Of the American bank
srs at Denver recently to set forth
the outlook as il is forecasted by
some OF our ablest bankers and
was clearly forecasted by Paul
WaFburg just after he completed
his service as one Of the governors
of the Federal Reserve Board at
Washington, it would have been
stated that after the war foreign
securities, national. Industrial, com
mercial. and railroad would be Of
fered for sale in the United States
chiefly through the medium of the
stock exchange and Furthermore
that very large deposits Of funds
would be kept in the American
banks by foreigners and, in addi-
ton that these influences would 20
far towards establishing dollar ex-
exchange so that II Will command
as much favor as pound sterling
exchange. HOLLAND.
BALTIMORE PRODUCE.