Evening star., 1927-10-18

Increased interest in foreign stocks
on the part of American investors is
predicted as result Of the New York
Stock Exchanges decision to permit
trading on the exchange in such
shares when they represent high
grade companies. The plan is to have
flnanciers In this country deal in the
foreign stocks through deposit certifl.
Gates representing shares held in
trust.
1.-THE fact Of paramount interest" !"
according to the New York Times, ais
the Stock Exchanges recognition of
the extent to which American invest
ment capital is already overf1owing
our own markets, not only in sub
scriptions to foreign dollar securities
offered in America, but through pur-
chasing shares Of foreign enterprises
on the foreign markets themselves.
To promote free and sure interna-
tional market for sound investment
shares of this description would un-
questionably facilitate the task of the
American market as the worlds
credit center and the international
reservoir Of capital"
Looking forward to the time when
there may be ultimately a decision
to list foreign stocks in their original
FORM" the Indianapolis News says:
THAT would be logical outcome-a
continued rise in American invest
ments abroad and general recognition
Of the permanent status of the United
States as a great creditor nation"
The Binghamton Press feels that "the
only surprising thing about the de-
cision Of the Stock Exchange is that
the decision has been so long delayed.
America is financing the world" con-
tinues that paper. ito greater eX.
tent every year. Whether it is the
wish of the United States to do so
or not, we will find it necessary to do
so as a matter of compulsion morally
and for our Industrial preservation"
The need Of proper protection for
American investors Is emphasized by
the Philadelphia Public Ledger, which
remarks that 'it goes without saying
that rigid tests will be applied to such
foreign securities as are offered for
listing, and all reasonable measures
taken for safeguarding the American
investor" The Ledger calls the step
one Of importance "for American cap
ital and for foreign industry"
The existence of billions of sur
plus and exportable capital" impresses
the Louisville Courier-Journal, which
finds that "the need of such a mar
ket is obvious. In fact" continues
that paper, "for several years trading
has been going on in foreign bonds.
The move is exemplifica-
not London Is the financial center,
needle street is world market. In
finance America has lost it's provincial
viewpoint. It cannot remain in isola-
ton. 1t Is the financial hub" The
Worcester Telegram also states that
New York has been encroaching
more and more, since the World War,
on London as the worlds money mar
ket. In January, 1896" the Tele-
gram records, "the bond list Of the
New York Stock Exchange contained
112 foreign issues with market value
Of more than two billion dollars. In
July, 1927, there were 255 issues with
a market value Of about $4,650, ,000,-
O00."
London, Paris and Berlin have
been the international money markets
in the past" declares the st. Joseph
News-Press; ''but today the great tide
Of wealth has risen to the flood in
America. American capital is seeking
investment. and has found it the
world over. American dollars have
turned mill wheels. laid railroads and
reared buildings in foreign lands"
The News.Press also reminds its
readers that in addition to the fact
that for some time foreign bonds have
been dealt in on the New York Stock
Exchange, during the war. permis.
sion was granted for the listing of
shares Of four great foreign corpor-
ations, but with the provision (now
made generaD that these shares
should be dealt in through the medium
Of American certificates Of deposit"
X Il y
"It was inevitable that this step
should have been taken," in the opin.
lon OF the artford Times. "for the