Evening star., 1939-10-13
Bugaboo Of Foreign
Selling Fades as
War Continues
Offerings From Europe
Only Minor TriekIe
On Stock Market
BY the Associated Press.

BY the Associated Press.
NEW YORK, Oct. 13.-Six weeks
of war have almost expelled from
the Wall Street limbo of fears the
big bugaboo of recent years in the
market place-foreign selling.
What many thought would be q
deluge of European offerings of
American securities on the outbreak
of war so far has been only a minor
trickle of liquidation.
Most stocks on the Wall Street
boards today are quoted substantial
ly higher than at the end of August.
Only one thing keeps the average
trader from dismissing entirely the
possibility CT a sudden influx of
foreign security selling orders, bro
kers explained. That is the chance
revision of the United States neu-
trality legislation to permit sale of
war supplies may move the allies
to speed selling of negotiable Amer
ican securities to obtain dollar ex-
change.
British holdings of American Sc
curities readily salable here are esti-
mated to total more than 81, ,00O, ,000,-
600. The French holdings are fig
ured to be near 100000 900.
Offered by individuals.
eign business say there has been q
small run of London selling of Amer
ican securities ever since the war
began. These orders, it was said,
have been offerings Of individuals
sanctioned by the Bank of England
under the official British control Of
exchange transactions.
1t has been a one-Way street, as
broker called it. because British
purchases of American securities
have been banned to conserve dollar
exchange for war purposes. AS a
result. it appears, the United States
again Is repatriating investments
from Europe, as it did OH a huge
scale in the World War.
British investments in American
negotiable securities at the start of
the World War were calculated to
have been more than three times
the present total Most of them
were sold to provide exchange in the
war years. Fully 40 per cent of the
allied war purchases in the United
States from July, 1914, through July,
1917, were paid for by resale of
American securities, the Institute
for International Finance estimates.
If the Neutrality Act is changed to
permit cash and carry" purchases
and the war becomes a prolonged
affair, some brokers suggest, the
United States may re-acquire the
bulk of the remaining holdings of
the allies. London long has been
the chief foreign stronghold of
American securities.
Danger Minimized.
Even so, it was argued in certain
quarters which have studied the
situation, prospects of wholesale
dumping Of securities here by the
allies have been minimized by war
time provision for selling under
Government supervision. The Brit
ish control. 1t was explained. at any
time may stop sales through simple
refusal of permission to execute the
orders.
The interests of the British to OBJ
tain the best market possible, it was
noted, would make for gradual liqui-
dation as the market is able to digest
offerings rather than throwing hold
ings overheard regardless of prices.
England, according to banking
circles, is believed to have something
like $1,000000,0O0 in gold under
"earmark" in New York and in Can
ada to meet emergency exchange
needs. Brokers figure this would
take care of lot of war purchases
without the necessity of pressing
the sale of American securities for
months to come. Meanwhile, one
commission man said, gradual alb
sorption of sales from abroad might
be expected.