Evening star., 1928-09-07
BRITISH INDUSTRY
DECLARED ON MEND
Capital, Used for Home In.
vestment, Not Attracted
by U. S. Rates.
BY !. C. ROYLE.

BY J. c. ROYLE.
Special Gable to The Star. Copyrisht. 1923
LONDON, September 7.-Conditions
industri4lly and commercially are on
the M Id in Great Britain and British
financiers are determined to keep them
50. A leading executive of the Midland
Bank, Ltd one of the greatest of the
English banking chains. told the writer
today that this financial attitude ac-
counted for the failure of British capi-
taliStS to pour their money into the
American call money market, when the
interest rate rises above per cent.
Such rates, the banker admitted, arc
highly attractive. The present tele-
phonic and telegraphic communications
would make the transactions compare
lively simple and safe from unexpected
developments in Wall Street. The rate
compares with bank rate of AZ per
cent and call money rate of some
times less than 3 per cent here. But
the British bankers feel that every
penny of British capital Is acutely need
ed in promoting trade and industry in
the empire.
Investment Capital Shrinks.
The London market, in consequence,
has not been widely disturbed. Neither
have the prices of shares on the Lon
don market been seriously disturbed.
London had it's period of heavy specu-
lation and frenzied trading and got
over 1t before the American Federal
Reserve Bank started measures to curb
the extent OF trading in the United
States. In consequence, the English
financiers feel far more comfortable as
to the general outlook than some OF
their American associates.
England no longer has the volume OF
capital for investment, which she had
before the war, and which in previous
times enabled her to finance many OF
the big construction developments OF
America What she has she Is putting
into her own concerns. Here, as else
where, amalgamations are the order OF
the day, while the financing of new and
up-to-date equipment and the promo
ton of new industries call for huge
sums. England still is heavy holder
of American securities and will continue
to be, but some holdings have been ad-
vantageously disposed Of in Wall street
during the recent bull market. and much
of this cash will go into holdings on this
side of the Atlantic.
heaOJuSLment Oh IndnCeS.
The readjustment of national finances
In Europe continues to have vital
effect on the worlds commodity mar
kets. For example, London vaults are
filled at the moment with silver bullion
from France. When the franc was
stabilized, the old silver coins ceased to
be legal tender and were bought in by
the French government. Hoards OF
coins from the stockings OF the families
of France we're brought to light and
dumped into the vaults Of the Bank of
France. Since then the reflners have
been busy and the bullion has been sent
to the London market. It Is remark
able that this unexpected volume Of sill
yer should have been absorbed with such
slight effect on the price Of metal, but
further stock threatens any price ad-
vance.
In the case of some coins, notably the
5-franc pieces, the silver content of the
coins is per cent higher than their
face value. The Orient has taken its
full share of the excess on the market.
English financiers look with approval
on the market which Is developing for
funds for new and improved machinery
and equipment, since they realize more
fully than the manufacturers the need
fer modern methods. AS is usually the
case, however. the money Is going into
the more prosperous industries instead
of into those doing badly.
Theater Mergers.
Establishment and amalgamation Of
theater chains and amusement enter
prises is progressing rapidly, with
ample capital available. New indus
tries. or at least industries new to Eng
land, are receiving financial support.
Among these are the beet sugar indus
try and the development of canning
plants.
The relative steadiness and stability
of the British industrial stocks ind1-
Gates thoroughly how strong their po-
sition is. They have recovered promptly
from the liquidation following the mys-
teerious death of Capt: Lowenstein' the
Belgian promoter and financler.