The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-07-03
Our Indebtedness Abroad.

On the score Of the figures reported
by President LoREE OF the Delaware
and Hudson Company after a search
ing investigation into the amount Of
our railroad securities held abroad.
u disposition has been manifested to
draw premature conclusions that the
extent OF the country's international
Indebtedness on capital account has
been greatly exaggerated In recent
years. The L.Oree figures supply us
with certain interesting and most
valuable data. They furnish n basis
Of closely Appropriated fact for our
finance to reckon upon. but It is
doubtful II they change very much
the national balance sheet items hith-
erto accepted as a fairly correct
statement Of our liabilities abroad.
1t IL only about twenty years since
n competent study Of the country's
status nj a debtor nation vas under
taken. In that period various inves-
tigatOrs, working or less in the
dark in some respects but having
some reasonably trustworthy statis-
ties as a guide. have checked up one
anOther's deductions with the re.
sult that in recent years II has come
10 he believed that there was a total
Of 5000. 100000 or more OF foreign
investment in the United States. In
Guiding all manner Of commitments,
from railroad bonds to shares in min
ing prospects. Reckonings Of the
sort have been assisted by some data
about the Judgment Of securities. hui
the IOree inquiry represents practi-
cnlly the first serious effort to ascer-
tain directly. through n anvas Of
corporations, where our securities
are held.
According 10 the Loree figures
some $3.50, 100000 Of our railroad
securities are owned by foreigners.
Less than a third Of this il stock Of
assorted descriptions. the bulk being
fixed charge securities, almost one
half Of the grand total being mort
gage bonds. Certain allowances
will have 10 he made for underesti.
mates, but probably the total foreign
holdings Of II railroad securities
are less than has been supposed.
At the same time foreign invest.
ment in our railroads forms only n
portion OF the way in which capital
from abroad has obtained employ
ment here. How large a proportion
Of our capital Indebtedness abroad Is
denoted by nOn-rallroad investments
Is a matter Of the sheerest conjecture,
but 1t must be very large.
Europeans have a proclivity TO the
engagement OF funds In real estate
ventures and "A liking for some spe
cifc forms OF industrial enterprise
A good deal Of European money has
gone into mining. timber lands and
ranches. Some OF II has gone into
brewerles and very much Of II into
farm mortgages and realty bonds OF
all sorts. while in the last few years
our public utility securities have
found large favor in European eyes
In the upshot 1t is likely to he found
when facts, such as the IOrep inGuiry
has developed in the cas- Of the rail
roads. become available with respect
to other forms Of economic endeavol
In the United States, that estimate,
which have placed our foreign capita
Indebtedness at fully $1,000, 600, OO(
have not been exaggerated.
Very much Of this Indebtedness
however, IL quite permanently fixed
Europe could not llquldate n lnrg'
part IT It's assets here II II wlshe,
to. Rather oddly that which give
the I0ree figures their greatest prac
teal value Mt the moment ls the evl
dcnce afforded OF the existence ~
II foreign liability in salable SO
curitirS. Occasion for the Inrer In
qniry was provided by the apprchen
slons Of last autumn that Europ,