The Washington times., 1915-05-17
Money Problem Faces
Il. S. in Case of War
Millions, Perhaps Billions In Property Involved II Hosttes Are
Opened With Germany; Huge Sums Invested in Both
Nations by the Allies
By JUDsON c. WELLIVER.

The precise legal status Of many
hundreds Of millions. perhaps of billions.
OF property In this country and others
would be brought into question II the
United States were to become involved
In the war in Europe.
Vast properties IN the United States.
or European ownership, would be liable
to conflscation.
aggregate value, owned by Americans
In Europe. would be in the same pos
ture.
American corporations would not be
permitted. It is assumed, to pay dIvi-
dends on securities held by citizens Of
the countries with which the United
States IL at war.
The German ships now interned in this
country would be under the necessity
OF leaving American waters at tho risk
Of being captured on the high seas. or
else being oonfiscated In the ports where
they are now held.
Never So Complicated.
In all the history of warfare there has
probably never been so complicated a
financial situation in international re-
iationships. as that which would ensue
between the United States and Ger
many. II the two countries by any
chance should engage in hostilities.
Germans have long been large in
vestors In the United States, particu-
larly In securities of railroad and indus
trial corporations. 1t is now pretty
we'll known that these Investments
we're, TO a considerable degree liqui-
dated In the last year before the war
began. During that period Germany
was systematically turning its invest
ments into forms most available for
quick use. and the conversion was
made so skillfully and quietly that the
what was afoot until the war had
actually broken out.
Consequently It is impossible at all
accurately to appraise German holdings
however, that they are largest in rail-
road securities, then in industrials, and
finally in real estate and miscellaneous
forms Of property.
On the other hand. American property
interests in Germany are larger than
Is generally understood, because in re-
cent years a number Of American in
dustrials have been forced to establish
plants in Germany.
Must Be Made There.
The German patent laws require that
an article patented there shall be made
there within a brief period, else the
patent protection Is withdrawn. I'm
der this. such great corporations as the
American Linotype Company. the
United Shoe Machinery Company. and
number of others have built plants
in Germany.
American holdings of German securi-
ties. governmental and other. have
been larger. 1t Is believed. than was
commonly understood before the war.
Since the war began part Of a German
loan has been offered and subscribed
here.
German investors are considerable
holders Of bonds of American munich
palities.
lions Of dollars worth OF these various
alien-owned investments, in both coun-
| tries. would be involved II the two
countries should 60 to war. What
would be their standing7
to people on both sides who have such
holdings. But It Is more easily answered
than the next one.
"Alien Enemies"
With the two countries at war. un.
naturalized Germans In this country
would become, before the law. ''alier
enemies" No matter how loyal to thi.
country, or how determined that their
country should be exemplary. tina,
| would be their legal position. This
class Of people own great aggregates
OF property in this country; and to in.
! volve them In any general conhscatior
measures would be 80 far-reaching ir
effects that It is recognized as quite i'm
possible that any such would be un'
| dertaken.
The declaration Of war between tw<
countries has the effect under long
| NJ hltshed International nracffrA n,
suspending, but not wiping out, debt