The Washington herald., 1919-07-12
financial News----New York and Local Stocks
INVESTORS SOON
TO Get MILLIONS.
Approximately $300,000.-
900 Will Be Paid Out,
Holland Estimates.

Beginning on July I, and continuing
through the month. approximately
500. 100000 will have been paid In
New York to fortunate investors in
fthe form of dividends or interest
Some Of this represents earnings that
have been secured in the past three
months and some Of it is in the form
OF half yearly dividends and interest.
Much the greater part Of this sum
will. the bankers think. be available
for reinyestment, so that. as far as
sSOo,0oo.oo0 will go, so far will money
market conditions be benefited.
Beginning also with July l are the
preparations, o.. II might be better
to term the movement the first steps,
preparations already having been
made. in the direction Of the colossal
world financing upon which the Unit
ed States is now TO enter. Bankers
say it is to be a new experience for
us. and that the great fnanciers OF
Europe are aware that 1t is not only
Few, but is to be stupendous- In the
asst we have done very little world
nancing excepting that which was
lade necessary by the exigeneies OF
ne war since 1914. including the So
o.oOo, 200 which were loaned to for
IN governments.
n the past the United States has
m looked upon by other nations
only an incidental factor In the
ancial transactions of the world.
had done very little in the way
lending money upon the good faith
the securities of foreign nations
as far back as 1895, the imperial
.vernment Of Germany treasury
, ties were put out here by Germany
the first time. Sir Felix Shuster.
in rbfg country at abOnf that
ne. spoke to his banking friends IN
,ndon upon his return to England OF
at international financial incident
foreshadowing A larger relation
the United States to world financ-
2. Sir Felix may have had in mind
re fact that the United Statee would
on be called upon to accept good
any millions of English consols.
his unimpeacha security was
dced with American banks through
influence Of James Stillman. Mr..
Hlman. after visit to Europe. was
crsuaded that the money markets
the world would not become nor
nal until Great Britain had adequate
financed the debt created by her
war with the Beers. 1t was the con-
ditiou of the money market az that
tIme-chie1y due to the fact that
financed its war debt-which. in the
view of the ADLER men OF finance.
was the cause of the so-called rich
mans PARISH. a panic so great that
the common stock of the United
States Steel Corporation was at one
time quoted as low as 80 a share.
When Japan Comes to Us.
The brilliant men who directed
the affairs Of Japan at the time Of
her war with Russia realized tha-
Japan was in need not only OF funds
hut also OF commodities in large
amounts. They therefore caused an
approach to be made to American
bankers. And this was dom only
Two or three years after our banks
absorbed some millions of English
COnSOIS and also the treasury notes
which were issued by Germany. We
accepted the proposition made by
Japan and the result was that ut
the close of the war between J spau
and Russia in 1904 there were held
by American banks many millions
Of Japanese notes and She roneX
thus obtained by japan was almost
exclusively used in the purchase OF
commodities in the United States Of
which Japan stood IN need. This
was precedent which eleven years
later and for three years thCreaft-
~r was followed by the European
--tIon.s with which we weTs in al
lance For they secured va ~ Ioars
in the United States and the money
or credit thus obtained was avail
able to pay for purchase Cf Iii
tions and other commodities which
the United States was selling to
these nations. At last and suddenly
". had become the leading ration
Of the world in international finance.
HOLLAND