Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1900-09-03
AMERICA IS A
DEBTOR NATION.
AND 1T is THE GREATEST DEBTOR
IN THE WHOLE WORLD, AC-
CoRDIAG TO STATISTICS.
WHY THIS STATE EXISTS.
IMPORTANT FACTS AND FIGURES
WORTHY OF STUDY.
If the the Excess of EXPORTS Shouid
Continue as Heavy ms the Average
of the Last Three Years, America
VIII Become Creditor Nation in
Twenty-Five Years.

WASHINGTON, D. c., September q
Since the p |, cling of a large part of the
recert English loan in New York there
has been much talk in financial circles
of Americas becoming a creditor ma
ton. So far as this talk would create
the impression that America mas al
ready become a creditor nation it is
misleading. AS prediction for the fu-
ture. however, 1t is safely within the
bounds of probability.
At present ours is the greatest debtor
nation in the world; but what OF it:
The fact that it is only shows that our
country offers greater inducements for
the investment of capital than any oth-
err. 1t is no badge of poverty. 1t only
means that in spite of the fact that
America Is the richest nation in the
world, she offers opportunities for the
profitable investment of more wealth
than she possesses If America should
become creditor nation, it would show
that money was being Withdrawn from
the United States to be invested else
where; and the presumption would be
that other countries were able TO
Offer Superior Inducements
to investors.
Still the position of debtor, whether
held by nation or an individual, is not
an entirely safe one. The threat of de-
mand for payment casts shadow over
all endeayor, and the demand is more
apt to be made when payment would be
most difficult than AT any other time.
Of Inbt ic
only at the sufferance of its creditors,
and, in time of panic, conditions, bad
the world over, are made worse in the
country that owes most, because or the
claims that its creditors are forced by
their needs to make on 1t.
AS already stated, America is the
greatest debtor notion on the globe.
This statement is safe in spite of the
fact that the balance against her Is not
known. Some financiers estimate 1T as
low as S2500000, 900, while Others think
it is four times that amount. When the
dispute over the boundary between Ven
ezuela and British Guiana threatened
to involve the United States in war
with England Moreton Frewin, the
great British financier, said that Eng
land could not afford to fight the Unit
ed States because she would have to
bear
Too Great a Proportion
of the loss she might infiict, as we'll as
all she might sustain. He said that
British holdings in the United States
amounted at that time to not less than
five billion dollars. AS Germans, Dutch,
French and Belgians have also extern
Sive interests in this country, it is safe
to say that if Mr. Frewin was correct,
Americas Indebtedness to foreigners
amounted to not hess than eight billion
dollars.
The Monthly Summary Of Commerce
and Finance for June and for twelve
months ending with June, which has
been published within the last two
weeks, contains a statement OF the eX-
ports from and imports into the United
States, of merchandise, gold and silver
for each year, beginning with 1890 and
ending with 1900 This table furnishes
the best data that can be obtained for
a calculation of the balance of debt
against America When total imports
money as we'll as merchandise--eX-
coed total exports the difference shows
Americas debt for the year. She has
lNNCiN Gu u!OIC C4ldli ciC iIo paul OSt,
and as a matter Of course
Owes For the Difference.
America must receive credit for the ex-
ess of exports fer any year which shows
such excess. Interest must be cGmpGr-
ed annually on these balances. but al
lowaIEe must be made for bad invest
ments, which end in loss OF principal
as well as interest While the interest
charged was undoubtedly much higher
than three and third per cent per an
mum this amount may be assumed as
the net interest left after all losses had
been met. Assuming this as the COR
rect rate, the following Indebtedness
against the United States at the eX
piration of quinquennial periods:
1190-Balance of imports. 2,79iSit
Add interest 5ls per cent. 95, l6l
$2,SSS005
Balance 1871 so, $50
li9l-lndebtedness ..,........ 49,. Sl5,075,96i
np