118 THE WORK OF THE STOCK EXCHANGE
nevertheless were unable to supply sufficient investment funds
to finance our own trade and industry.** We had constantly to
import for this purpose capital furnished by British, Dutch,
German, and other foreign investors in our stocks and bonds.
During and since the Great War, however, this traditional
condition was reversed and probably forever. Not only has
large-scale American industry been financed by American
security speculators and investors alone more adequately than
ever before, but in addition our security buying class has for
the first time become accustomed extensively to finance foreign
governments and foreign business enterprises. Vast as have
been the new security flotations in the United States since the
war, there is little doubt but what the aggregate savings of our
people have been at almost all times even more enormous.
The New American Investing Public.—During the war,
thrift and the consequent creation of fresh capital was an im-
perative necessity. Brilliantly inculcated by the Federal Gov-
ernment and cooperating private financial institutions and
firms, thrift was earnestly and patriotically practised by the
rank and file of the American people with remarkable unanimity
and success. The capital thus created flowed primarily, of
course, into U. S. Government bonds.
After 1920, however, our National Debt ceased to expand
and began rapidly to contract—a trend steadily maintained
during succeeding years. But meanwhile, the unabated tend-
ency of the public to save and invest poured forth each year a
vast flood of fresh capital, which rising business prosperity
only augmented. Billions of dollars consequently flowed into
the important task of restoring Europe to economic health and
financial equilibrium, and even larger sums were steadily made
available for our own states, municipalities, and business enter-
prises. Even yet, the unparalleled extent of American savings,
and the indispensable part they have played in saving Europe
"#1 See Chapter XVIII, p. 517.
