The Birmingham age-herald., 1918-09-27
FOREIGN LOANS
 IN UNITED STATES
Bv HOLLAND

New York. September 26.-In the spring of 1915 Henry P. Davison return ed from his second visit to London and Paris after the war began. when In London he had opportunity to learn some things associated 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 magnitude. He had as associate Tn the house of J. r. Morgan and company some familiarity with large figures, but he confessed that in spite of this ex- perienee he was unprepared for the colossal figures which were brought to his attention.
 Mr. Davison did not go into further details. He had learned enough to jus- tify him in uniting with MT. Morgan and others in recommending that an Amerl- can banking syndicate should under write g. joint loan made by Great Brit ain and France amounting to $500 1000, behind which stood no other security than the resources, good faith and credit of these two nations While MT. DaVl- sons knowledge of foreign investments held in France may not have been so detailed as was the information which he received in London, nevertheless ne
  eign industries had borrowed vast amounts of money in France and that the annual income from these invest ments was very large sum or money.
 Recently it has been stated by high authority who was speaking to bankers who were holding convention at Dem yer that the United States, if wise man. agement and skilled direction or our finances are maintained, is sure to hold a position as the first money power of the world. This authority went so far as to name figures, saying that If the war is continued only year or more longer the United States will be the creditor of other nations by as much as 5000 .0o0,0O0.
 TT HAD ALREADY BEEN SAID High authority had already intmated that if the war were continued another year and loans by the United States to our allies were also {continued. then the aggregate of foreign indebtedness to this country will not be far from $9,000,- 100000 The Secretary of the Treasury. Mr McAdoo, is quoted as having said that we are already the creditor of other nations by as much as $7.O00 0000, 900. Since that statement was made we have lent several hundreds of millions to other nations.
 Estimating the aggregate indebtedness to the United States by the end of the year 1919 as 5000, 000,000. the high banking authority who spoke to the bank CTS at Denver said that this country would be in receipt yearly of approxi- mately $500 00o, 900 which would be paid to us 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 interest demands. NOT EQUAL TO GREAT BRITAIN'S
 Enormous as is s500,0O0,00O, and greatly as will the receipt of that sum each year increase the annual income. so to call IT, of the United States, nevertheless the sum is not equal to the return which Great Britain received from her invest ment in foreign securities until year or two ago at least. Mr. Davison would not dispute the statement that Great Britain was receiving on account of her foreign investments an income of ss0O.0OO,0O0 year, for in the conversation which was had with him upon his return from Eu- rope he intimated that Great Britain s income from foreign investments was not much below billion dollars year.
 It will be necessary, therefore, for the United States considerably to increase the credits and loans which it has made and will make to foreign nations if there is to be received in this country after the war is ended an aggregate payment of $500. ,000. representing interest upon these loans.
 France, 1t is reported, was. at the be- ginRing of the war, in receipt each year of about $400. .000.000 which represented payment of interest upon loans. That amount must have been cut somewhat by reason of the Russian collapse, and yet the best authorities have reason to know that France is stilling receiving a large amount of money each year in payment for interest upon the loans she has made to other nations. A statement was also made that at the beginning of the war Germany was receiving approximately $200, 100000 each year which represented the payment of interest upon loans or se- curities held by Germany on account of other nations It is believed that Great Britain has not seriously cut into her great holding of foreign securities. She