Britain Sold Short

Shocked British bankers and investors last week read a bulletin written by Oswald T. Falk, member of the London house of Buckmaster & Moore. Broker Falk advised all his clients to sell all their British stocks and buy stock of U. S. or colonial enterprises. No sentimentalist, he did not even palliate his statement in the manner of the Stock Exchange Gazette (London) which declared: "Hard times get the best out of individuals and out of nations. . . . The pent-up energies of this nation will not be restrained forever."

Outstanding bits of Mr. Falk's "Note on Investment Policy": P: I believe that the industrial prosperity of England is much more than temporarily depressed, and that we are some way down the road of a long decline, at the end of which we shall find our relative industrial position entirely different from what it was in the 19th Century. ... I would sell the shares of almost all British industrial companies operating at home, particularly the shares of the older industries.

P: I believe that the economic, political and climatic advantages of the U. S. and Canada during the next few decades will be so overwhelmingly great that these countries offer the most attractive field for investment. There is room for immense expansion and the desire for it. Wealth is the main objective, the pace will be hot, and the profit high. P: I think it is quite wrong to believe that the currency chaos of the last ten years will now be replaced by a long period of calm stability similar to that of the 19th Century. ... On the basis of this view I would invest a large part of any fund in the strongest currency in the world, the American dollar.

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