The Washington herald., 1918-09-27
LARGE INCOME
ASSURED U. S.
Holland Expects America to
Be Worlds Money
--., Power.

wilson returned from MS second NlslI
to London and Paris after the war
began. When in London he had OPP
portunity to learn some things asso-
ciated with the foreign investments
which were held in Great Britain. He
spoke OF the figures which were then
set before him as something which
amazed him by reason OF their mag
nituds. He had as an associate in
the house Of J. P. Morgan & CO.,
some familiarity with large figures,
but he was unprepared for the colos-
sal figures which were brought to his
attention.
Mr.. Davidson did not go into fur
ther details. He had learned enough
to Justify him IN uniting with Mr..
Morgan and others In recommending
that an American banking syndicate
should undervrite n joint loan made
by Great Britain and France amount
ing to 10000. COO. behind which stood
TO other security than the resources.
good faith and credit OF these two
nstions.
Large French Loans.
While Mr.. Davidson's knowledge Of
foreign investments held in France
may not have been so detailed as was
the information which he received in
London. nevertheless he did learn that
foreign nations and foreign Industries
had borrowed vast amounts OF money
in France and that the annual in
come from these investments was a
very large sum OF money.
Recently IL has been stated by
high authority who was speaking to
bankers who were holding a conven-
ton at Denver. that the United
states. II wise mana cement and skilled
direction OF our finances are main
tained, Is sure TO hold a position as
the hrSt money power of the world.
This authority went so far as to name
figures, saying that II the war Is con-
tinued only a year or more longer the
United States will be the creditor of
other nations by as much as nine bill
Hon dollars.
Vast sum Owed Z. g.
High authority had already inti-
mated that II the war were continued
another year and loans by the United
states TO our allies were also con-
tinued. then the aggregate OF foreign
indsbtedneSs TO this country will not
be far from nire billion dollars. The
Secretary Of the Treasury, Mr.. Nc
Adoo, Is quoted as having said that
We are already the creditor OF other
nations by as much as seven billions.
Since that statement was made we
have lent several hundred millions to
other nations.
Estimating the aggregate indebted
ness to the United States by the end
OF the year 1913 as nine billion dollars,
the high banking authority who spoke
70 the bankers at Denver said that
this country would be in receipt year
y Of approximately five hundred MIL
lion dollars. which would be paid to
Is on interest obligations. There is
no doubt OF the ability of our foreign
debtors, with the POSSIBLE exception
OF Russia, TO meet on time these in
Lerest demands.
Exceeded BY England.
Enormous as is $500, 10000 and great
ly as will the receipt Of that sum each
year increase the annual income. so
10 call it OF the United States, never
tneless the sum is not equal TO the
return which Great Britain received
from her investment in foreign secur-
ltes until year or two ago at least.
Mr. Davidson would not dispute the
statement that Great Britain was re-
ce1Fing on account Of her foreign in
Testment5 an income Of SsOOO00OlO a
year, for in the conversation which
was had with him upon his return
from Europe he intimated that Great
Britain's income from foreign invest
ments was not much below a billion
dollars a year.
II will be necessary, therefore, for
the United States considerably 70 in
crease the credits and loans which il
mas made and will make 10 foreign
hauons II there is to be received in
this country after the war is ended
an aggregate payment of $50. 100
representing interest upon these loans.
French Income Cut,
France. il is reported was. at the
beginning Of the war. in receipt each
year of about 80, ,n0O, ,00C. which repre-
santed Payment Of interest Ipoo
loans. That amount must have been
cut somewhat by reason Of the Rms
sian collapse, and yet the best aU-
chorities have reason to know that
France il stin receiving q. Isrra
amount OF money each year in paw
Inent Tor interest upon the loans she
las made TO other nations. A state
nent was also made that at the be-
GmninS OF the war Germany was re-
ceivins approximately saOnOj0OO0 each
"----L ASFL tSChIeC Inc payment
Oc interest upon loans ~. eacI,r;tIas
Held BY Germany on account of other
nations. It Is believed that C;reat
Britain has not seriously cut into her
great holdings OF foreign securities
she has borrowed money in enormous
amounts from the United States, but
sne has also lent to other nations.
france and Italy are understood to
De her debtors in large amounts. The
United States will not press for nav
ment OF the principal of the loans
which have been made provided onIy
the interest upon these loans is reg,I-
iary met All OF the loans which
nave been made by American bankers
10. Great Britain, France and other
nauons are what may be called time
loans n fi7Ee n,