The sun., 1919-03-09
SEES A DANGER In
FOREIGN INVESTING
Writer Gives Warning Against
Ill Chosen Placing Of
American Capital.
URGES CLOSE SCRUTINY
May Avoid Misuse Of Money
by Studying Countries of
Securities Offered.

With the development which peace
Wi bring In Europe--and the resultant
opportunities for American capital to
b opened in foreign fields. there is
crave danger that such investments
may be III chosen. that American wealth
may 20 ito these In other countries
who would use Il not for the worlds
benefit, but to the unprincipled spec
uiator and the dishonest. whose misuse
Of money goes largely to make up tho
worlds waste" This Ia the opinion of
tho writer of an article on "Foreign In
vsstments in Their Relation to the
Future Of This Country published in
. pamphlet issued by the Bankers Trust
Company. Suggestive remedial. or
rather preventive steps by which this
may Do avoided, include a close study OF
important points. as laws and customs
al the country, methods OF taxation.
financial history, foreign trade. banking
and currency systems. &c
AFTER peace has been declared" the
article reads In part, tho United States
will have entered into the lives OF the
other nations as IL has never done
befora. Development OF their industries
win DO more vital to our prosperity. II
10 fair to presume that we may have
net annual balance. due US from the rest
Of the world, of around 000.000.000.
,rriS pblauCe can % inaue uSeIui 10 uS
only through increasing our imports of
commodities or service. or through our
investment In foreign securities.
I'm view Of the wonderful development
of the United States which was made
possible through use OF foreign capital.
We have before US a positive example
Of the benefit derived through irnporta-
ton and proper use Of such capital.
wise Investment 60 Ala Nations. !,
If this nation with an annual $1,000
eeo. 1000 credit from the rest OF the world
oRn invest large part of the amount
20 bring about proportionate and similar
development IN other countries, It will
BE- building up other nations. a. we'll
a. helping ITSELF
Through increased prosperity. coun-
ties owing the United States will be
batter able to pay their debts, and
aftsr such debts are paid the United
States win hold other Investments In
foreign lands which viii help maintain
our ability to Import those things which
cur people need.
'Ths war has shown the great value
Of foreign investments to . country in
emergency. The total foreign obliga-
tions held by the United States out
sanding January /. 1918. OF which
thsre 10 satisfactory record amounted
10 es.<ss.s27.83o, OF which S7,31s.s0t,-
80 represented advances made BY the
United States Governmsnt to lie Allies.
This left s2.1S3.s32,Ssu outstanding IN
he hands Of bankers and the public,
tries OF the world.
Moro Foreign Leans Important.
EN- view of the probable annual ball
anee which will be due the United States
from other countries It seems important
4 .~SH I<.ax, 10 al hxyA
b foreign nations when they can be
properly secured for several hundreds
os millions OF dollars year.
eff our Investments in foreign couii.
tries are not we'll chosen. the wealth
az our people does not so to those IN
other countries who would use 1t for
the worlds benefit. but to the unprin-
cipled Spectator and the dishonest.
whose misuse of money goes largely to
make UP the waste OF the world
"Sonne of the most important points
That we must study are a. Follows:
Laws and customs OF the country
tn which we would invest
Methods OF taxation
'-rhs national income OF many OF the
osuntries OF the world practically ceased
e opening OF war. because foreign trade
was stopped for period and public
revenue was received almost entirely
fsorn import duties
~E1nancial history OF the country.
THE historical statement OF its trans
sections IN words and nsirea Forsigu
trade. Banking and currency systems
Political and financial integrity, and In
6ustrtL and social education OF Its peo-
pie.
"Afl Of these elements should be con-
ffoered as they have force in connection
with every municipal. public service.
Industrial transportation. agricultural or
mining project. In addition to such con-
alterations. where the security 10 not
national the standing OF the parties
directly concerned. and all other neces-
sary points of inquiry which exist In
cases Of similar domestic enterprises
should DO studied