The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1920-11-02
WHAT THE WAR DID.


From q debtoN nation the United
States has been transformed into the
greatest creditor nation in the world
since the outbreak of the Great War.
Shortly after our entrance into the
war. congress authorized $4,000, 000,-
900 for loans abroad, and of this
amount we actually advanced nearly
SO, SOC, 900, 900. Careful compilations
place privately made loans to Europe
at present outstanding at about two
and a quarter billions. making the to-
tai ascertainable loans at present out
standing just little short of 2,0O0,-
900, 900. But from March, 1919, when
government loans ceased. to the end of
July last, \the balance of trade in our
favor was $4.67S,0o0.0 900. To this
amount must be added 1904. 600, 900
representing our net exports of gold
and silver for the same period, which
brings the trade balance to $685.
600. 900. 1t is not generally realized,
says the Mechanics and Metals Ma
tional bank of New York, that the
United States, with net loans of from
s13 200, 900. 900 to SIS, 900. 900. 900, has
ALREADY surpassed Great Britain as the
foremost of creditor nations.
The significance of this can only be
fully appreciated by recalling the COM
parative position of Great Britain and
the United States before the war.
Great Britain then held undisputed
leadership as a world investor and
creditor. Calculations of the amount
of her holdings of foreign securities
ranged from $4,000. 900. 900 to $780,
0OO, 900, 900. The second nation in
point of foreign investment was Ger
many, with about $4,000, 900. 900; then
came France with 5000, 000,0 900. The
United States was not lending nation
at all. 1t was heavily a debtor, to a
net amount estimated at $4,000, 00O,-
900.
1t had taken the nations of Europe
generations to build up the volume of
States to change from a debtor nation
to such an extent into creditor ma
ton within two or three years, was an
achievement never paralleled by any
nation in the history of the world.
For the United States to surpass the
worlds foremost lending nation with
in two or three years more is a result
that, up to 1915, not single financier
or economist would have dared to pre-
dict.
When the United States began
bringing back its own securities pre-
viously held by foreigners, L. f.
Loree made a thoro investigation, of
the volume of railroad securities re-
purchased. When this compilation
was first made up the railway securi-
ties held abroad totaIled s2,704,OO0,-
900 par value. Two years later, or
just prior to our own entrance into
the war, there had been returned to
this market securities with par value
of $1.51s, 100000. or Sc per cent of the
original total During the period in
which the United States was taking
back these securities, our bankers and
investors were also making direct
loans to England, France and other
European nations, to a total of ap-
pfoximately $2,475. 200, 900, while some
investigators believed that there was
in addition probably $500, 900, 900 in
the hands of bankers and investors
which represented internal foreign
government and private obligations
not publicly recorded. Thus, prior to
our entrance into the war, we had at
least cancelled the $4,000. O0O,O 900 net
amount of our Indebtedness existing
up to. 1914 and possibly had done a
little better than that.