WILL AMERICA SWALLOW EUROPE

Waihi Daily Telegraph, Volume XXVI, Issue 7910, 3 October 1929, Page 3

WILL AMERICA SWALLOW EUROPE

FLOW OF CAPITAL TO UNITED STATES MENACE TO ENGLAND LONDON, August 2. A striking article by Viscount Rothermere, entitled “Will Wall Street Swallow Europe?” appears in the Sunday Pictorial. The article is of the utmost importance to every investor in Great Britain, and deals with the steady and increasing flow of European capital into the United States. Lord Rothermere points out that four-fifths of the world’s wealth is now concentrated in North America, where the presidents of its great corporations and trusts are of more importance than many European Prime Ministers. It is now towards Wall Street that bankers,' financiers, and stockholders are looking for leadership. During the last few years American stocks in the soundest concerns have risen at 1 an almost incredible ■ rate. Many well-known shares have appreciated in value by several hundreds per cent. This is all part of the great tide -of prosperity upon -which the United States is rising. •JVIDESPREAD CONSEQUENCES European investors have not been slow to realise the benefit of investing in a sound American business concern rather than in European industries which are liable to be carried down in the general depression on this side of the Atlantic. As the result, the United States has become the goal of the refugee capital of Europe. _ . „ European capital is now flowing westwards in an ever-increasing volume. Wall Street is draining the world of capital, and throughout Europe the sources of credit are drying up and the bank rates are increasing. ' The widespread consequence ot this financial phenomenon is described by Lord Rothermere. He urges that friendship with the United - States is now a greater need than ever. Britain’s shortest way to industrial recovery is to attract capital back from the United States, when her present glut produces a surplus lor investment abroad.