The sun., 1918-11-25

siderable margin available for reinvest-
ment next month after, the semi-annual
dividend and interest payments have
been made.
New Foreign Loans.
The probability is that American
bankers will make large loans to Mexico
and to other foreign Governments. This
would be natural in view Of the efforts
under way TO increase our foreign trade
with countries which have not at their
command sufficient gold TO effect the set
Element Though series of foreign loans
I would be possible for American interests
to secure a vast amount OF "reconstruc-
ton business" and thus insure continued
activity for many industries that were
formerly given over to war work. These
plans may involve the ultimate placing
with American investors of large foreign
bond issues. which our bankers would
take with the distinct understanding
that the proceeds OF the loans were to be
used to purchase raw material and mer-
chandise in this country.
1t was Just eighteen years ago that
Germany placed her first loan in the
United States. The deal was concluded
on September II. 1900. when $50. 900, 900
OF 4 per cenS treasury bonds maturing
in 1904 and 1905 were placed In this
market. one-quartcr Of the loan went
to an Insurance company and the rest
OF tho bonds were quickly placed with
the banks and large financial institu-
tons. The proceeds Of this loan went
70 defray the costs OF the German expe-
dition to China. and after the details had
become known the Imperial Government
was criticised by German financial In
terests for placing the loan In a foreign
market. This operation really marked
the beginning OF our heavy loans to for
eign Governments. and It was followed
by a series OF loans TO various foreign
Governments and municipalities.
The present situation is more pro-
pitious for such advances to foreign Gov
ernments by American banking interests,
which are protected by the largest gold
reserve in the world and which for four
years have been acting as banker for
most OF Europe. The probability is that
these operations will be favored by the
Administration with the idea of securing
for this country an immense volume OF
orders In connection with the restoration
OF Europe's crippled industries This
situation Is highly encouraging and will
develop interesting possibilities In con-
nection with the struggle for foreign
trade after peace has been officially de-
clared. Under the recent amendments
to the Federal reserve act It will be
easier for our bankers to handle sucl,
loans. the movement being helped also
BY the facilities provided by the forma-
ton OF various heavily capitalized dis
| count corporations in this country. II
! may be taken for granted therefore that
/ tho negotiations under way to make
large advances to Mexico represent only
4 the beginning OF n movement which is
bound to have important bearing upon
the future development OF American
| trade IN foreign fields. An immense
| body OF these loans which were for
merly handled in London have been con-
sidered by the international bankers O.
| this country. who are well equipped 70
put through the transaction on terms
which will make It profitable for them to
| handle the business This is only one OF
| the developments OF the reconstruction
era, which really began several weeks
before the armistice was signed a fort.
, night ago.
End OF the Year.
There are many reason for believing
that the next Ave weeks will witness i'm.
portant changes in the financial situa-
! ton. with The resumption of activity In
! various branches of business which nave
! been more or less stagnant for several
weeks. The raising OF the $4,000 .OOC