New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1919-02-09
Italy a Field for
u. =. Investments.
Bankers Assert
Formation of Corporation to
Market American Securi-
ties Here Advocated; Edu-
cational Work Necessary

M Och closer commercial and fnan-
AV1 cial relations between Italy and
the United States are looked for as one
of the results of the great war. Italy
needs millions of dollars worth of new
capital. The prospects are that she
must come to the United States for
much of it. Whether Italy will be able
to educate the American investment
public to purchase the securities of
her corporations remains to be seen.
Leading Italian financiers assert that
if American capital is seriously wanted
in Italy, either by the government, by
municipalities or by industrial con-
Germs, the Italian banking interests
should begin campaign of education
here setting forth before American in
vestors Italy's achievements in the
financial and commercial fields in the
past decade.
Luigi Criscuolo, ex-secretary of the
advisory finance committee of the
United States railroad administration
writing in "The Italian Review" de-
clares in favor Of the formation of an
Italian investment corporation whose
sole purpose would be to market Italian
securities of all kinds in the United
States by American sales methods.
" have no doubt" he says, that if
such movement were seriously organ
lied some of the foremost men of the
American financial world would lend
their names and offer their capital TO
the corporation. But the initiative
should come from Italian banking and
commercial interests and not from
American interests"
Leading American bankers have re-
Gently gone on record as stating that
the United States, if it is to retain the
position of supremacy in. international
trade acquired during the war, must in
the future be prepared to buy foreign
securities Moreover, it has been JIM
sisted that only through investment in
such securities will this country be
able to obtain settlement of the huge
amounts owing it as result of the
war.
Charles E. Mitchell, president of the
National City Company, in discussing
the world investment situation, par
ticularly as it affects Italy, with Mr..
CriscYelo, said:
The continued discussion of the
new international position of the
United States proves to American in
vestors that they must invest their
dollars in sound foreign enterprises if
America is to remain real big power
in world trade and finance. These in
vestments will not be limited to anv
one country, but will cover the whole
world wherever business is conducted
IN sane way and property rights are
thoroughly protected. 1t is perfectly
natural that the new and greater italy.
with her wealth Of natural resources
should be included in the field. Italian
business will no doubt feel sense of
relief to be free from German pene-
tratlon. American investments abroad
Will not be fostered by unfair methods.
A'SS via NC DdStQ upon tne usual
commercial and investment considera-
tons.
The same safeguards that are placed
around our own best railroad public
utility, industrial and municipal bonds
when offered by responsible bond
houses must be placed around invest
ments abroad if the confidence of
American bond buyers in foreign. Sc
curities is to be won and maintained
10 make Italian securities readily sal
able in the United States and more
easily understood by investors in this
country they should be issued in dollar
form, with, perhaps, the privilege of
accepting payment in Italy in lire, at
the option of the holder.
Before the war Germany held first
place in Italy's foreign trade. The
United Kingdom was second and the
United States third In 1917 the
United States was first on account Of
heavy shipments of raw materials and
foodstuffs. When commerce returns to
normal large portion Of Italian trade
will tend to flow back to England and
France. The United States can help
hold haly's trade by encouraging in
vestmcnt between the two countries"