Laos, A Handbook of Peru for Investors and Immigrants (Baltimore, 1903); C. R.
Once a nation shows its willingness to seize foreign-owned property at will, foreign investors are reluctant to do business there again.
It is, however, noteworthy that Spanish capitalists are, as a class, though exclusive of the Catalans, unduly conservative Hence the capital for the establishment of electrical industries was almost exclusively subscribed in Germany, France, Belgium, Switzerland and the United States, just as, in the 19th century, the railways and mining industries had been mainly financed by British investors, and the Valencian silk industry by French.
Where a railway is built for general commercial reasons, however, it must furnish its own credit; that is to say, it must convince investors that it can be worked profitably and give them an assured return on the funds they advance.
The valuable resources of the republic, and its comparative immunity from revolution, formerly attracted the attention of European and American investors, who supplied the capital for internal development.
Much satisfaction was shown in Europe at the fall of President Celman, for investors had suffered heavily by the way in which the resources of Argentina had been dissipated by that the uprising of public opinion against his financial methods signified a more honest conduct of the national affairs in the future.