Evening star., 1921-05-29
By I. 4. FLEMING.

:, American investors were urged 8
Few months ago to get back of the
securities of foreign countries with
a view of aiding them in their eco
iIcmic recovery and as a better
method than through making govern
mcnt loans
= 1t was pointed out that there were
many safe investments available, that
many municipalities in foreign coun-
ties were in Il position to market. il
the money was available in America
large sums of bonds with certainty OF
payment.
We were to emulate the example of
Great Britain i'll other days and be
come d great creditor nation. and
these loans We're to help in the up
building of our foreign trade.
Today investors and spectators are
trading in thirty four diffe rent issues
Of. German and Austrian bonds, in
Guiding the securities of the German
government. with which We are tech
nically at war. of Bremen. Berlin. Co
l"Ene. Frankfort. Hamburg, Vienna
and even bonds of krupp Go.
We have millions of bonds of Bel
Eium. hundreds of millions of French
and French municipalities securities,
Japanese, Denmark. Sweden. Chile.
Norway Brazil and Dominican Sc
curities daily traded in on tie New
York Stock EXchange-and the pro-
c"edS do not buy American manufac-
turerS and raw products as did the
loans to the allies. in the good old
DAYS when we fooled ourselves into
considering the country wonderfully
prosperous. ia we purchased OUR own
production. paid high prices therefor
and high wageS-at least We fur
nished the money and paid the piper
all the distance.
We a-e today creditor nation. a
great creditor nation and the thought
continually asserts itself that in the
event of diplomatic rupture between
the United States and any other ma
.ion on earth millions of investments
would he hazarded.
: In nation leading the way for
disarmament. there should he small
ohance for flotation of the secu--
it;es of Krupp and others who have
grown rich in the trade. not art of
w2r.
conference held the other day be-
tween a group of prominent banke-s
tho President and Secretaries Mellon
and Hoover.
:, The cabinet will probably receive
reports on this meet 'n- during the
present week II is understood the
representatives of the admir;s'ra-
ton advanced that idea. that foreign
loans should only he fioated in the
tinted States for the purpose Of
hayinG for American made goods.
that the exhausted export trade
might be revived and business i'm
proved or fo- the liquidation of eS-
iStent debts he-e.
1T is understood that the bankers
DID not give this proposition their
approval
Commenting on this statement. the
Wall Street Journal had this TO saw:
Whether this statement is true
has not been learned positively. and
the chief reason for the impression
appears TO he the general belief that
loans of foreign clients without be
ing hampered by strings of any
kind"
1t will be an interesting develop
truth of the belief that the bankers
favored the no-tape Theory.
The printing and engraving presses
nave been mighty busy during The last
YEAR or more. That the products o. tnH
presses have been finally dissested is
not believed. as shown by the cnor-
nous trs nsact:ons daily
Fridays sales were Slc 34a. eco: fo- the
year 70 date they totaled $l.S2n .c0nfo.
In giving consideration 20 the lar"
niimNer OF foreign DONUs W III "Ni' ~ NV
American market is being flooded. on"
finds less reason fo- wonder in tn fac:
that government Trea sury certificates
issued by the Treasury Of the United
States find such high favor with con-
Serya;iye investors at 81 Der cent when
compared with the IS and Ss and even
higher rates of other securities
The American public has been a Ecod
bond buyer. From the $3.50 .0oo.0oo OF
the Great Northern-No-thern Pac'Ec is
ha
sue after bond issue. and but few svnd!-
Gates have dissolved without a satisfac-
tory percentage of profit.
An Object Lesson.
Wall street is furnishing a striking
lesson Of the "relativity" between po'-
eTty and prosperity. the prosperity OF
year ago and the striking poverty OF
today.
One can bu. marvel az corporation
after corporation. interested a year ago
in stock dividends, fat extra dis,ribu-
,ions and enormous earnings. coEfesses
that il IL Impossible to pay IFS share
holders the usual quarterly dividend In
GONE few instances 1--WE
policy may be responsible for the action.
directors occasionally daring to MAKE
the announcement from a desire t" ac-
rnmulate a big cash surplus to stave
oyer the lean years or the lean year. as
1921 promises to be. a yea. OF recon-
s:ruction Of bringing down the cost-.
Another object lesson that is beir :
gwen to the Arneric public al ;iiG
time is found in TIC manner IN wa CO
their President sE gong aoois .ae
solution Of the probIcua ;hat H. ha5
been called upon - iGcc-
He may make r,ist1ker. ru: ne ha1
not given the pracSiral business rnr:i
Of the country the cold nhouide1 am
turned listening ear to theorists.
and therein lien the hope OK the pso-
II be.peaks we'll for aid to aGr.cli-
ture the sore @p": In our own do
rrestic ecOnomy-tle Creates puT-
chasing pow r,i-: b. a,f.:h ma MOI
iscourag~d. bu! 4 a.se T-1Ist adjus.
iIseIf 10 CHANGE. co5di:io2S
Confidence Will bc sf-en2.,cfe"
every dav -:nHe- the iITy. Taiion OF - Il"
Harding ut.eranc"s: and ac:.ors. ard
confidence Eo@s far in reH.or.1S TIE
normal.
Are Yo- (yrSitc-!
1h. t'rsreI ..i4:e. ,-f,-r ~, ~ =: o---4=
folders Of lb~rtr h1nds $4,000. ii
interest Th!s * f.: in'"..si on tgr7 .
I,Drary it,~rtJ ;,pnds. ihat 80 no
I,.en exchanged 1os TN" TSTrn:'as y *
fer%st covers 1,iT1,ITi boahs OF 81,
renorina,ion~. ~iis 8 par raiu" e.:
II IS probablr ':sa' a"fa. of 'h<s3
i'.nds are los. "n. 7;r@ 'a.n L..
ma, they wfii. - t:tn ihh-. 'in, rnt,
10 light. 10 taa afvaaiafa Of the.
second or third owners
The oafiook.
J.. g Bache & &c. have this {" sas
under the aDora caption,
We are gradually approaching no"
what in normal ,.r,.. would ~ called
,hs summer daiines-- Evidences "I
GlsappointmeF. generally are appsa:
;.ox. bcCaus. new business does ho
si.ow itself az riAay e2rec;sd ii would