Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1913-07-20
TAKE
IMMENSE SUMS
ACROSS OCEAN
Nations Trade Balance Is Affected
Considerably by Spenders
at European Resorts.

NEW 1ORh, july l9.-AlthOugn
estimates of sums spent by tourists
abroad vary the total is stupendous.
They largely affect our balance of
trade. These expenditures account
for much of our excess of exports,
the remainder being accounted for by
remittances to other lands, by pay
ments for ocean freight and by in
terest upon capital borrowed from
other countries, etc.
Charles F. Speare calculated in 1908
that remittances from America of for
eign born were S25O,OOO,OOO a year,
and that the rate of increase is 10 per
cent. This would give for 1913 over
$500, 900, 600
Sir George Parish. editor of The
Statist, in 1910 arrived at conclusion
that the United States have on bal
of $3.50, 100000 for interest upon for
eign capital invested with them; that
expenditures of American citizens in
! other lands exceed by $17O,O0O,OOO out
/
States; that remittances of foreign
born citizens to friends in Europe
and elsewhere amount to $4,000, 900,
and that net sum paid for ocean
freight to other countries is $685.,
000, 900.
Heavy Exports Necessary.
Thus America has to make an an
nual payment of about $685., 100000
| for purposes other than for purchase
of goods from other countries. In
other words, exports of merchandise,
gold and silver from the United
| States must exceed aggregate value
of merchandise. gold and silver i'm
ported by nearly $500 100000 in order
| that payment may be made for in
terest, tourist expenditure, etc. That
| is to say, America requires an excess
over imports of nearly $500, 100000 per
annum in order to settle her trade
balance"
Figures presented here recently
gave a different estimate of some of
these factors. 1t was shown the
American traveller spent abroad be-
! tween S400, 100000 and $500,000,OO0;
| that the American exodus into Canada
removed $3.50, 100000 a year from this
| country; and that sums sent or taken
out of the country by foreigners were
/ S595.000,00O per annum.
Another Estimate.
Even these estimates do not sufh-
/ GENTLY Indicate actual conditions, in
! opinion Of important financial inter
ests. Average estimates by promi-
nent bankers put outgo of funds from
| United States assfollows:
| Travellers ...............S SOO,OOO,OOO
| Interest on investments
held by foreigners. 250,00O,000
Freights ............ 100000, 900
| Spent by American resi-
dents abroad ..... 100000 900
! Remittances by foreign
ers ACKNOWLEDGEMENTS. 100000, 900
| Taken into Canada. ..... 100000
] IOtal Sl.4UU,UUU,UVU
In addition, our imports are at the
rate of S1,S45.OOO0OO, giving a total
expenditure of $3,245. 100000. Against
| this can be set exports of 01,000.
| 600. leaving an annual balance of
! trade against the United States Of
| $744,000, 600. This balance can be met
only by sale of American securities
/ to Europe and by other foreign in
vestments here.
Times May Change.
For many years this invisible trade
/ balance against this country mas mus
/ been easily absorbed. In the future,
according to this financial view, mat
/ tiers may be different. Europe is COM
ing to the point where American Sc
curities, in competition with attract
! i've European investments, high in
/ terest return of new emissions prOX-
unity of investment and success of
opportunity will no longer appeal to
/ the European investor. American
/ finance is looking with a certain anx-
iety to what It considers the inevita-
/ bly, near approach Of that time.
Contraction of the European mar
ket and interest in American securi-
/ ties will force a serious problem upon
/ expansion of the United States, in
which about $500, 0OO,O of foreign
/ capital has been invested. This capt.
/ tai is largely in railroad securities. It
/ has had the effect of releasing capt.
/ tai for domestic and manufacturing
purposes. in turn causing enormous
growth in population, production and
wealth. Any change Of these con-
ditions which may check flow of cap
1 ital from foreign sources will revolu-
! tionize the bases of our international
and national position. This gives food
/ for serious thought at a moment when
our national industrial position also
| is being changed from a historic tar
/ If policy of 125 years Of growth and
/ success.