The Bozeman courier. (Bozeman, Mont.) 1919-1954, 1922-11-08
FINANCIAL And BUSINESS SURVEY

In any examination OF the factors
underlying the increasing plOmin-
ence OF foreign issues among the new
security offerings in the United
States, London's traditional position
as money-lender to the world cannot
be disregarded, states the current IS
sue Of the Guaranty News, published
by the Guaranty Trust Company of
New York. Looking at the question
from that angle, the Survey con-
tinueS, it is realized that serious con-
~slderation must be given to certain
significant developments in the cap
ltal market in England which have
accompanied the growing volume of
international financing here.
The annual output of securities in
England was relatively stable in the
SIX years preceding 1914. The early
part of 1915 saw the treasury exer-
cising strict control over the market
because of the paramount necessity
OF outstanding the financial
Iof the country" From 1914 to 1918,
therefore, the figures serve little
more than as a record of government
borrowings, and the same is true to
a considerable extent for 1919.
Capital funds raised by public sub
scrlptlon in 1920 and in 1921 declined
sharply in amount in comparison
with the six preceding years, but re-
manned at 81 1888, 10000 and 81, 945,-
OOO,OOO, respectively, well over the
average annual pre-war aggregates.
This reflected both higher commod-
ity prices and financing that had been
deferred between 1914 and 1919.
New issues of the first half of 1919
were $2,245, 900 900, which
not only the record for the first six
months of any year except 1917 and
1918, but all records for whole
IL the war period Is disregarded.
Even including refunding items, the
new investment funds meant for use
abroad comprised but a relatively
small part of each years total Amer
lean output prior to 1914. It is natu-
raj that this should have been the
case, in view of the fact that invest
ors abroad were finding profitable
employment in this country for a
considerable portion of their capital.
The export of American savings on
an important sale dates from 1915.
when certain of the European bellig-
erents came to the New York market
for war loans. The effect of the ia
mlllar1ty thus acquired by investors
with securities of this nature has been
apparent in the READINGS with which
not only government and municipal
but also corporation issues have been
purchased here since 1913 in response
to offerings of foreign buyers.
In analysing the capital exported
from this country since 1913 two gen.
eral classifications have been estab-
llshed' These consist of government,
state, and municipal bonds on the
one hand, and of corporate securities
on the other. The second group has
been sub-divided to show separate
totals for foreign companies and
American companies doing business
abroad, while the items pertaining to
Canada under each of the two main
classflcatIons have been segregated
and listed separately.
National and local governments
have received the major share of in
vestment capital sent abroad by
Americans. An interesting feature
of the financing contaminated in the
first half of the current ear how
ever, was the notable upturn in the
volume of corporation stocks and
bonds put out here by foreign COM
panies domiciled elsewhere than in
Canada; the $83 100000 recorded in
this connection exceeds reports for
previous years and for the first time
takes first place among the corporate
sub-totals.
The degree TO which the capital
needs of the world have increased Is
suggested by the aggregate new Of
ferings in the two leading investment
markets. The first half of 1922 has
seen offerings nearly double those
for the whole year Of 1913.
While the United States has come
to be a factor of recognized import
ance in international investment
financing, the inference cannot we'll
be drawn that New York has sup
planted London in this field Oh that
such an event Is impending. The in