Evening star., 1919-02-23
BY SAMUEL CROWTHER.
Correspondence of The Sunday Star.l

Correspondence of The Sunday Star.l
LONDON. February Is, 1919.
T HAD a talk with Robert Flem-
ing, the English authority on
American investments. today, in
the course of which he brought
out these extremely important facts
or opinions on the financial relations
between Great Britain and the United
States and most of which run quite
contrary TO what we in America. have
been taking as the truth:
1. That instead of England being
heavily indebted to the United States
, and having in addition sold all of her
American Investments. the war debt
of England to America will hardly
exceed $4,000. 100000 when the ac-
counts are settled, and that the Eng
Nsh investors still have probably more
than that amount of money out in
p American securities, especially in
farm mortgages.
2. That England has ample money
for all her needs in the way of recon
version of factories and the finance
of foreign trade. and will also have
fuves trnent money for export and de-
yelopment abroad.
Cannot Displacs London.
g. That New York cannot, because
of its geographical situation and un-
familiarity with world commerce. dis
place London as a world money mar
ket, but will rather be new market
to meet the expanding needs of the
western world.
4. That the logical and inevitable
field for American activity Is the
Americas and that it will be there
she viii find her greatest opportuni
ties.
S. That once labor is settled, Eng
land has no cause to fear her finan-
cial and s.ammercial future and with
out tho sscessity for anything ap-
proachraS a trade war, which would
be suicitfzi
Robert Fleming is not a well known
figure to the American public, but
there is not a banker or railroad
man who does not know him. for he
has directed the bulk of English in
yestment in America for more than
forty years. He is said to know more
about American railroads than any
man in America Each year since 1878
and all through the panic years he has
slipped quietly into the country. con-
ferred, with a few bankers, and then
started on inspection trips which have
in their entirety covered every foot
Of the United States.
Investments of Billions.
Mr.. Fleming is the English authority
: on American investments and has di-
rected billions and billions of capital
into American stocks and bonds. 1t
would be hard to find a railway re-
organization in America that was put
through without his counsel and as
GiStance. There are international
bankers who have their names more
talked about (Robert Fleming never
s gets into the newspapers, and / think
this is the first time that he has ever
none who carries more weight. Be-
cause of his experience and position
he is a member of the committee ap-
pointed by parliament to report on the
financial condition and facilities of
! the British empire---on the financial
preparedness for peace-and therefore
what he says, although unofficial
opinion in England.
Il have always expected" he said
sto me. that some day America would
be creditor nation I did not see
how 1t was possible long to postpone
that condition. ] have been going to
America since 1s73-going every year
and travelling about to look at rail-
roads and farms. and each year I have
been more and more impressed with
the country's possibilities. You have
whole world there of your own-a
world in which you could live without
aid from the outside and without ever
exhausting your horne market / can
not imagine anything which America
cannot do now that you have the
money. / have been going over all
these years to invest money. Now" he
added. with quiet laugh, II suppose
that 1 shall have to go over and sell
securities"
Balance About Even.
There is a strong opinion in Amer
ia-" said. that the state of the ac-
counts between England and America
will make it necessary for us to leave
our interest money abroad or we shall
be swanped by too much money. With
English investments Withdrawn, the
balance is very heavily against you.
is it not?''
Why do you not ler us worry about
that? Or worry about the money
which other countries owe yoG2 am
not at all sure that we owe you any =
thing. OF course. we have sold great
amounts OF railway and other securi-
ties, but then again other very large
amounts were loaned to the govern
in your country to regulate the foreign
exchanges. The government took these
securities at scheduled prices, which
are mostly above the present market
rates, and they may buy them or re-
turn them to the owners; in eithe r
event the Indebtedness is owed by you
and the interest payments check
against the payment of interest by us
on war loans But there is another
: large Investment which has not been
: pledged and of which very little has
here been sold, and that is our invest
! ments in farm mortgage companies !
think there are some special arrange
nent that these should not be included