New-York tribune., 1918-11-02
u. S. Must Remain
World Banker After
War, Lamont Says
Permanent Plans Made to
Protect Foreign In
vestments

America mus. continue her activity
IN the handling OF foreign securities
in the reconstruction period that will
10 oloT the war Thomas ". Lamont. OF
+. 2. Morgan {, Co.. declared last
night at a dinner at the Metropoli-
tan Club given by him to the men,
hels Of the committee on foreign SC
curties OF the Investment Bankers AS
9oc:atlon, OF which he is chairman.
Nr Lamont induced his associates 70
take steps to transform the committee
INTO permanent organization to COM
pile data on conditions in ell foreign
countries that bear upon the interests
of American investors, much in the
same way as the Council of Foreign
Hondholders in London has done Tor
more than fifty yeats.
III Is not inDrobab ble," Mr.. Lamonu
aid, That the committee may COM
Pile an annual report which will in
clude details rs to the fiscal opera
tions OF foreign governments. shs:y
revenues and expenditures. their bor-
low'ngs and systems of taxation, COM
meTclal conditions, including domestic
and foreign trade, their currency and
tanking conditions as we'll. In other
words, it will, in general. be the inl-
porsant function Of this committee to
act as body representative of the
great mass OF American investors in
foreign securities. 1t is evident that
there VIII be wide field for the work
OF such committee, for it is obvious
that as time goes on and during The
reconstruction period inlmediat telv
RI Do. 1No
tinue to be active in the handline. Of
foreign securities.
America a Creditor Nation
Prior to the war America was a
debtor nation to the extent OF
something like S+,000,o00, 0,OoC. Nov
" changed. The The NOS most 'si"gisje a~ailable
figures indicate that Of Americas
former Indebtedness abroad at least
$1,000, 100000 have been directly lioui-
dated. and that in addition since the
war began private investors have
loaned to foreign governments between
$1,000. 100000 and $2.0o0.0Vo.0O and
chat the United States government has
loaned to its Allies upward Of $500
100000. The annual interess alone
upon this indebtedness will be upward
Of 100000, 200. and the question OF
foreign securities will be d ital one"
Mr. Lamont explained NAT when the
committee on Foreign Securities was
appointed last August by Warren S.
Hayden, president Of the Investment
Bankers Ass ociation, it was not forned
Tor the purpose of dealing with any
particular situation nor was There any
leading foreign government. he added,
Whlch was nov IN default or it. accuri-
Ues held by American investors.
"Wna- We have to do" he said. SIS
tries to which we have made loans.
with view to seeing tnat the debtor
country takes no action impairing the
security or rights Of holders Of It's
bonds in this country"
In view Of the wide geographical
distribution Of the members OF the
committee, Ny. Lamont vas authorized
10 appoint small executive committee
to act quickly should the necessity
arse. Arrangements We're also dis
cussed as 20 the election Of var;oua
would be TO study conditions in the
various foreign countries whose gov
ernment obligations are now held by
American investors.
Outside Cities Represented
The members Of the committee in
addition to Mr.. Lamont are:
A. r. FORBES, Of Harris. Forbes &
Co.; a. Y. krech. president of the
Equitable Trust Company: Charles T..
Mitchell. president OF the National
City Company; G. II. SabiN, president
OF the Guaranty Trust Company; c. S.
Sargent. jr.. OF kidder Peabody e. Co;
N. l.: Schiff. OF Kuhn. Loeb E. Co.: a.
II. Wiggin. cl.airma, Of the Chase
Nationnl Banh; II. L. Stuart, Of Halsey.
Stuart & Co.. Chicago: L. RI. Parsons.
Of Graham, Parsons & Co.. Philadel-
Dnia: Clarence Dillon. of William A.
cead 4 Co.; Z. l.. FTigginson. IT,. os
Lee, Higginson & Co., Boston; II. c.
McEldovney, OF the Union Trust Com
many. Pittsburgh; Herbert Fleisch-
hacker of the Anglo & London Paris
National Bank. San Francisco: John
Evans. OF the Internal tional Trust Com
pany, Denver: Seward Prosser, pres
ident Of the Bankers Trust Company,
and ". ?. Bonbright, of William F..
Ronbrisht {, Go. New York.