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MILLIONS LOANED TO
FOREIGN COUNTRIES
American Bankers Loan More
Than Billion Dollars.
NEW YORK.—The flow of Amer
ican capital into foreign and domes
tic investments comprising loans for
governments, municipalities and cor
porate enterprises, reached unprece
dented proportions in 1925. While
accurate compilations are not yet
available, preliminary estimates in
dicate that the total of capital flo
tations eclipse last year’s record
f slightly more than $6,000,000,000.
For the second time in history,
American investors poured more than
billion dollars into foreign lodns
during the year, equaling if not sur
passing the 1924 record of approx
imately $1,200,000,000. Productive
enterprises claimed about $350,000,-
000 of the total, the gain in this
Type of business offsetting a moder
ate decline in government borrow
ings.
America’s commanding position
as lender to the world was also strik
ingly revealed by the establishment
of huge private credits to help in
the stabilization of foreign curren
cies. Fortified by the possession of
enormous gold stocks, American
bankers set aside $300,000,000 for
the protection of Great Britain’s re
turn to the gold standard and ad
vanced many millions additional to
insure the stability of the Belgian
and Italian currencies preparatory
to their re-establishment on a gold
basis.
Activities in the field of new fi
nancing overshadowed in interest the
dealings in the bond market, which
failed to equal those of 1924 in
breadth and volume. Prices, how
ever, were maintained on a higher
level throughout the year. The up
ward movement which was in full
swing as last year drew to a close
was carried over in 1925, reaching
its peak in the spring. Thereafter
a'gradual tightening of money rates
caused the pace of trading to slack
and prices eased off several points
from the top, although still holding
several points above quotations of a
year a*go.
Several factors contributed to the
market’s loss of animation. For one
thing, bond trading lacked the im
petus which it derived in 1924 from
three reductions in the New York
federal reserve rediscount rate. The
only change made this year was an
advance from 3 to 3 1-2 per cent
in February, and its effect was seen
shortly afterward in the downward
trend of bond prices. Toward the
close of the year the market labored
under growing fears that the New
York bank would follow the other
federal reserve institutions in estab
lishing a 4 per cent rate.
No less potent than the bank
rate situation was the tendency of
surplus funds to seek an outlet in
the more speculative field of stock
trading. The call loan reservoir was
filled with idle money, most of
which was sent here for placement
by interior banks. The higher dis
count rates put into effect by banks
outside New York in the fall a-t
rracted some of it home, but not un
til it had been utilized as one of
the factors to carry speculation in
stocks to unparalleled heights. These
spectacular operations, coupled with
the steady flow of new offerings,
inviting investment, acted as a coun
ter-attraction to the bond market.
Although many substantial gains
were recorded during the year, the
market lacked the wide price move
ments which featured the recovery
of many speculaitve bonds in the
preceding year. Obligations of one
southern railroad, which carried
unique warrants to purchase stock
in a Florida land company, soared
almost 100 points before they were
retired, and a few convertible rail
and oil bonds moved up 20 to 30
points in the wake of advancing
prices for these companies’ shares.
The only sharp break in prices
took place in the bonds of the
Chicago, Milwaukee & St. Paul Rail
way, when financial disaster over
took this northwestern system. Bur
dened with a funded dbet of some
3400,000,000 and facing maturities
of 350,000,000, the road was forced
into receivership in March and its
securities plunged to record low
levels. Recoveries followed the
drafting and subsequent modification
of a reorganization plan, providing
for a drastic scaling down of fixed
interest charges and foreshadowing
an early restoration of the road to
a sound financial footing.
The S.t Paul receivership threw
more than $230,000,000 of bonds
into default, but the amount of in
dustrial issues unable to pay interest
was reduced from 3124,000,000 to
kibout 8100.006,000 during the
More than $70,000,000 were
lifted from default while $35,000,-
000 were added to the list.
The broader demand for foreign
securities in 1925, embracing both
listed bonds and new issues, re
flected the great progress made in
the economic recovery of the world,
particularly of European nations.
Two of the Scandinavian countries
—Norway and Denmark—so im
proved their financial structures that
they were able to refund large
loans at substantially lower inter
est rates.
Unofficial embargoes on foreign
loans both in this country and Great
Britain exerted a considerable in
fluence on the size and character of
.1925 borrowings. Early in the year
the United States government closed
the door to European nations which
had not yet funded their war debt.
This excluded France as a borrower
in this market, but Italy, Belgium
and Czecho-Slovakia were readily
accommodated with loans and credits
after having made arrangements to
settle their obligations to the gov
ernment.
A new policy regarding the regu-'
latiofi of foreign loans also took
shape through the cooperation of
the Washington administration and
international bankers in denying
financial assistance to foreign mo
nopolies, which might otherwise
have obtained American funds to
maintain high prices against Amer
ican consumers. Proposed loans of
$25,000,000 to the German potash
syndicate and $35,000,000 to the Sao
Paulo coffee industry' were rejected
on this account.
While the American investment
market lost considerable business
through these restrictions, it was
enabled to attract new borrowers
when Great Britten placed a ban
on foreign financing upon her re
turn to the gold standard.
This brought to New York a $75-
000,000 Australian loan, which
ranked as one of the major foreign
flotations of the year along with the
$100,000,000 Italian loan, a $70,000,-
000 note issue for Canada and a $50,-
000,000 offering for Belgium. The
Italian financing, which followed
that country’s debt settlement in the
fall, absorbed a $50,000,000 exchange
stabilization credit, while this loan
to Belgium was supplemented by
similar credits from private bank
ers and the Federal Reserve bank.
France, Germany and Belgium
are among the important prospec
tive borrowers here next year. Ad
vances to the French government
are contihgent upon a satisfactory
debt settlement, in which event a
$100,000,000 loan is a possibility.
Germany is expected to obtain a like
amount through the sale of rail
way bonds issued to the reparation
commission, while Belgium is in line
for a $150,000,000 international
loan, a large portion of which will
be underwritten in this country.
German industries and munici
palities alone absorbed approximate
ly $200,000,000 of American capital
during the year, the loans ranging
from the great shipping and steel
compaines of the Reich to a central
bank of agriculture. Os the financ
ing for productive purposes. An ad
ditional $100,000,000 in loans of this
type may be expected before the new
year is far advenced, with competi
tion offered by a like amount of
Italian municipal and industrial bond
issues.
Other Countries.
Other foreign countries and indus
tries which floated important loans
here included the government of
Argentina, approximately $100,000,-
000; Poland, $35,0000,000; Norway
and Denmark, $30,000,000 each, and
the Tokyo Electric company of Japan
$24,000,000.
Mexico’s credit standing was ap
preciable stengthened when the
$500,000,000 debt agreement, nego
tiated in 1922 and abrogated in
1924 was restored in modified form.
The most important provision involv
ed a return of the Mexican railways
to private ownership on Jan. 1, 1926.
The largest individual offering of
the year took the form of a $125,000-
000 bond issue for the American Tel
ephone and Telegraph company, one
of the few billion dollar corporations
of the United States. Second place
in corporate financing was taken
by the $75,000,000 offering of Dodge
Bros., debentures, which marked the
passing of the huge motor company
from private control to the hands
of the public. The Baltipiore &
Ohio, Central National, “Panhandle”
division of the Pennsylvania and
the Canadian National Railways were
represented in the market with large
bond offerings.
Total sales of listed bonds on the
New York stock exchange were es
timated roughly at $3,500,000,000,
compared with almost $4,000,000,-
000 in 1924. Lighter trading in
Liberty bonds, which were dealt in
on a purely investment status, ac
counted partly for the contraction.
COTTON CENSUS FIGURES.
The amount of cotton ginned in
Early county of the 1925 crop up to
December 13th is announced as 12,-
170 bales, as against ■ 7,641 to the
same date in 1924, an increase qf
4,529 bales. Miller county ginnings
to same date for 1925 were 4.423
bales, as against 2,100 in 1924. The
total for Georgia was 1,182,241 bales
for 1925 as against 1,011,530 in
1924, a gain of 70,717 bales.
John Deer Plow points at
TARVER’S.
EARLY COUNTY NEWS
GOVERNOR WALKER
TO TOUR STATE
In the Interest of His Legisla
tive Program.
Governor Walker plans to can
vass the state from end to end in
the interest of the issues set up in
his call for an extra session of the |
legislature on February 24th, he!
announced Wednesday. The chiefs
executive declared that he expected ’
to open his campaign in or near
Waycross during the early part of
January, following an official in-:
spection of a proposed water power I
development project affecting the j’
Okefenokee swamp.
“I plan to speak in every county j
possible, devoting at least three days =
of each week during the months of !
January and February to advocating j
the causes of pensions, highways and ;
education,” Governor Walker an-1
nounced. “I believe that there is |
a strong sentiment over the state j
for the advancement of Georgia j
along all these lines, and it will be !
my endeavor to crystalize this sen- j
timent in advance of the meeting of 1
the legislature.
Our Thanks
X
We wish to thank our many ccustomers for their liberal pat
ronage of the past year and ask a continuance of same, for we
will do all we can to make your dealings with us both pleasant
1
and profitable to you, as we have always striven to do.
We wish to say that we will continue to do a credit business, but
will be compelled to ask for gilt-edge security. If you can not give
such security please do not ask for credit, and save embarrass
ment to both of us.
Call and get a pretty calendar for the New Year.
Wishing you one and all a Happy and Prosperous New Year,
SAM STEIN
- " J'
«
WE THANK YOU
.v■ ’ *
*
For the liberal business we have enjoyed during the past year,
we are profoundly grateful and wish to take this method of ex
pressing our thanks to those who helped to make our business a
satisfactory one. We wish to solicit a continuation of your pat
ronage and good will during the year to come, and with our best
wishes for a most Happy and Prosperous New Year to each of
you, we are,
Yours very truly,
Ball-Ainsworth Hardware Co.
U. D. C.
The U. D. C. will meet Friday
afternoon at 3 o’clock with Mrs.
J. G. Satndifer and Mrs. W. C. Cox
at the home of the latter. This is
the meeting announced to be held
at the home of Mrs. Fuqua, and
members will please note change.
WE THANK YOU.
. We would indeed feel ungrateful if
we did not extend to our friends our
sincere thanks for the liberal patronage
we have enjoyed during the past year and
to wish for each and every one of them
all the joys of the Yuletide season and the
best of the things which the New Year may
have in store.
BARHAM JEWELRY CO.
BLAKELY, GA.
CHILDREN’S FATAL DISEASES
Wonns and parasites in the intestines
of children undermine health and so
weaken their vitality that they are unable
to resist the diseases so fatal to child life.
The safe course is to give- a few doses of
White’s Cream Vermifuge. It destroys
and expels the worms without the slight
est injury to the health or activity of the
child. Price 35c. Sold by
Balkcom’s Drug Store, Blakelyf Ga