New-York tribune., 1920-01-04

uI1OCSCAVpOA SAG2S ~ WIG WVAAV eits1l
would normally have come, and
1920 may be noteworthy in that
movement.
Foreign Capital
Developed u. 8.
The rapid Development: Of the
vast new areas Of the United States
was made possible by the invest
ment Of capital from other coun-
tries. The continued investment Of
capital in combination with our ma
tionalistic policy encouraged the de-
velopment Of diversified industry
which, during the period Of our ex-
pansion, found the market for it's
products within the country. Our
industries grew to such an extent
that many became interested in for
Neign trade as an outlet for their
products. The recent war led to
further expansion Of our indus
trial capacity and the establishment
Of comparatively new industries.
The maintenance Of an outlet for
our products in other countries is
essential to the maintenance and
development Of American indus
tries. The investment Of capital
in other countries is one of the ef-
fective ways to keep world markets
open for American products. This
involves the purchase Of foreign Sc
curities and the development Of an
international finance market in this
country.
Ever since its discovery America
has attracted the investment Of Eu-
ropean capital, and in report made
to the United States Monetary Com
mission in 1910 Sir George Paish
estimated that the total amount of
foreign capital, including bank loans,
invested in the United States was
approximately $6,500,o00,O00 Do
mestic capital, meanwhile, has been
accommodating, and while we con-
tinue to borrow, our capitalists were
able, on the other hand, to make ad-
vances for the development Of neigh
boring countries, especially Canada,
Cuba, Mexico and some Of the South
American countries. At that time
Paish estimated that the total in
vestment Of American capital in for
eign countries amounted to about
81, 500, 100000, leaving America q
debtor nation to the extent Of about
$4,000, ,000,0 900.
The capital which America OBJ
tanned from abroad was used chiefly
in extending and improving the rail-
roads Of the country. No one can
survey tho remarkable growth in
the population, wealth and produc-
tiveness Of the United States with
out being impressed by the great
part which the railroads have
played. They made possible the
cultivation Of vast tracts Of agricul-
tural land, the produce Of which be-
fore tho war was valued at more
than $4,000, 900, 900, and. now is esti-
mated to be worth approximately
81, ,oo0, 100000. They made pos
sible the opening up Of our immense
stores Of minerals.
In other directions the investment
Of foreign capital here was invalu-
able. It enabled us to devote our
own savings to the building and fur
nishing Of homes, to the equipment
OF our manufactures, to fitting our
retail establishments, and in this
way accelerated the growth Of our
population and wealth. Il is esti-
mated that the increase in the an
nual production Of wealth in the
United States made possible by tho
investment Of foreign capital here
has been at least twenty times
greater than tho sum paid for in
terest.
The interest paid to foreign capt.
talists by tho United States has been
Of less Importance to those CAPT.
talists than tho increase In the
wealth Of this country which their
Investments made possible. Such In
crease In our wealth has meant in
creased buying power and demand |
Tor the products Of ths lending coun- |
try, 10 that tho returns from foreign
Investments have been indefinitely |
larger than the more interest pay
ments.
In thA aaunn Swn~v ~sv>.-. As>-..A.~x |