MOVEMENT OF ENGLISH CAPITAL

Waikato Times, Volume XXXIII, Issue 2670, 22 August 1889, Page 3

MOVEMENT OF ENGLISH CAPITAL

The nows from San Francisco of 2~th ultn., deserves more than a passing attention. It has been long obvious that investors in England are very dissatisfied with the low rate of interest which for a year or two lias prevailed in that country, owing to the want of any adequate menus of employing it there. Investments on the old lines seemed nearly played out, except upon railway construction in South America. Wo now learn without much surprise that "English capital is seeking investment in the United States just now in enormous "quantities." A few cases are given: — £000,000 in the Otis Iron and Steel Company, £1,000,000 in the Canadian Anthracite Cmil Company, £1,000,000 in a salt trust, £2,000,000 in a dry goods project, and the money was " ready." This indicates that a new outlet has 'been found for English money ; not the starting of fresh companies to compete with old ones, so much as to purchiiHu well established concerns in the United States, "to buy breweries, restaurants, watch factories, and control the dry goods trade." How far such investments be safe, may be left to the investors to settle, at all events they do. and will, invest in them enormously. It is to be much regretted thnt none of this capital comes this way. On the contrary, many who havo invested cipital directly inland in this country, presumably intending to do something with it, sooner or later, not only flinch from further expenditure, but withdraw what they havo made, on terms not encouraging to investors. Those also who indirectly supply money through loan companies of various kinds do so only at a tato of intercut, to cover numerous losses, so high as to have attracted the notice of onr Government. Our rulers seom hardly to have realised that capital cannot be controlled nor confined to any territory, and that the more capital is induced at a favourable time to come into si country, whether by private or public operations, the more necessary it is to assist it to obtain a favourable return. l<'or, slnuld the supply bo stiipped, owing to unremunerative returns, private investors must suffer loss, trade be crippled, and the utmost farthing wrunf? from the only class who cannot withdraw—the cultivators. The ill-success of the St.Uo expenditure has to be paid for by someone, and State cxpenditute should be under the control of those who, by their labour and capital expended on the country, have voluntary pledged themselves to remain in it and abide by its fortunes.