The N.Z. Times. FRIDAY, JANUARY 14, 1910. BRITISH INVESTMENTS

New Zealand Times, Volume XXXII, Issue 7026, 14 January 1910, Page 4

The N.Z. Times.

FRIDAY, JANUARY 14, 1910. BRITISH INVESTMENTS

WJXB WBICB It MeOBPOIuraD TBI! "WKMIIOWW IKMPINDIINI." ISXiEUSKEB lUS.

It could have been wished that the cable message wo published from London during the week with reference to " new capital" raised in England during 1909 had been more explicit. The message dealt with the " Economist's " annual summary of the purposes for which capital had been subscribed during the preceding twelve months. If a very elastic definition be given to the word "borrowing" it would appear that the year's capital subscribed ior.investment in the Home .market upon mew issues, for colonial investment and for investment in foreign countries, was as follows: Sn l ::: ::: ::: ... :._«ww Total £182,348,600 which reveals a shortage on the subscriptions of the previous year amounting to four millions. Though there is this decline, the figures show a very great increase (approximately fifty millions) over those on record for the boom years of 1906 and 1907. The remarkable feature about the figures is, however, not in their aggregate but in the decided growth shown in the colonial and foreign share of the appropriation and the marked falling away in the money subscribed for home market use. If we take the recorded movement of capital for the past seven years its destination is seem to be:

Home. Colonial. Foreign. £ £ ■: ■ £ 1903 42,691.000 51.332,000 14,783,000 19C4 . ... 49,697,000 ' 35,257.0!)0 38.304.0C0 1905 51,183,030 49,046,000 65,0Z5,C00 1905... ... 36,298,000 26,380,000 57,641,000 1907 30,755.000 28,925,000 . 64,058,0:0 1908 ; 48,293,000 59,347.000 78,458,000 1909 18,681,400 74,750,400 88,917,200 Though the past year was one of unusual depression it is clear that the supply of capital had been in no way restricted, and that in the absence of attractice Home investments money turned readily into other avenues of investment. Standing without. explanation the figures under the ; Home market heading would give colour to the suggestion of . the scaremonger's suggestion that money is being driven out of the Kingdom. The fact is, however, that so acute was the depression last year and so high the rate o£ interest that the public issues in London for concerns at Home amounted, for the whole year, to twenty millions, far the lowest of which there: is recent record. Practically the whole of the money asked for was subscribed, but the plethora of uninvested funds could only be relieved by extensive investment abroad. That British money goes abroad in great quantities there is no doubt, and the sum so utilised must necessarily increase from year to year in a country so highly developed as Britain, and drawing such an immense annual income from "oversea. It is estimated that the British investor, has placed the colossalsum of £2,700,000,000 abroad: . France, Germamy, and America have also such investments, in each ' case exceeding £1,000,000,000. The circumstance, is deplored by no economist. By suoh investments the true work of Empire is performed, for the great bulk of the money has been , expended ; ..on the building ajnd equipment of .'railways, the development of mining and ports and the extension of municipal enterprises. The fact of the matter seems to be that capital is accumulating so rapidly that there is difficulty in finding employment for it, and were it not that there are backward parts of the earth to develop the investor'would bo hard pressed to find employment for his gold as an interest-producing asset.