Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1921-09-13
SEES US. PROFIT !
IN PURCHASE OF
AUSTRIAN LAND
Deal for Estate of Hapsburgs
Leads to German
Plan.
By G. B. EVANS.
sciaI to Indiana Daily Times
I DbHadaInl7ia Pnthlic 7 edUar

Special to Indiana Daily Times
and Philadelphia Public Ledger
CHICAGO, Sept. 13.-As performaneers
in the international drama Chicago pack
ers and grain men for the time being
must take a secondary place, to judge
from the reported $2OO,OOO,000 transac-
tions In Austria. Our investments in
Europe heretofore have been trivial
wealthy young women acquiring titled
men, ccnnoisseurs buying pictures, ia
dividuals here and there grabbing bar
gains in Italian villas or mountain views,
Chicago business men purchasing shrink
ing credits in London banks with ex-
banding dollars and winning good losses.
This purchase of the estates Of Archdukes
Frederick and AIbrecht appears to be
fixed investment covering productive
properties as well as European luxuries
in Austria and ghboring countries.
This is in accordance with the pro-
cesses of economic affairs in the past few
years and one cannot tell how soon a
famous property in Germany will become
an appanage Of misgoverned Chicago, for
there have been some quiet purchases Of
European holdings by persons in t.
city. The old practice as between con-
queror and conquered was to take over
territory. even when a money indemnity
was paid, and the impoverishment of
Germany as indicated by the world value
of the mark below l cent suggests that
that country will be absorbed by others
piecemeal, even though the titles to land
do not change nominal ownership.
The disadvantage OF investments in
Europe is in the tremendous burden of
taxation, but this appears to have been
taken fully into account by the parties
to the purchase just noted. Partly these
transactions grow out of the slowness
with which reparations moneys are paid,
for they must come gradually out OF
the increment from the soil. from labor
and from the foreign trade balance. The
fact that this country, asking no indem-
nifty, acquires the property does not alter
the case The unfortunate defeated coun-
tries must have money from some source
and this country happens to have the
loose change of the world 1t does not
matter where the money comes from, the
essential fact to the defeated nations is
that they must part with something.
These operations win have a material
effect on international trade. which may
be illustrated by the reported option
of a subsidiary of the American Wooden
Company on the output Of thirty three
worsted and yarn mills in Germany, Aus
tria and Czecho- Slovskia. The product
Of these mills will go to South America
and thus yield profits on American capt.
tai instead Of profits on German capital.
In addition the decline in European
money is shown to be a benefit, for the
time being at least, to this country.
whereas in the past any misfortune there
has been reflected at once by a down
turn in American affairs.
Seemingly it is only a question when
in the opinion of our investors values
shall have reached their lowest points.
One would say that the price Of marks
means bankruptcy to Germany and that
the time is near when much of the prop
erty there will be taken over by the
richer countries. Great Britain is rich
but would seem to have enough on her
hands now to absorb all her energies
Moreover, Great Britain seems not to
want anything more on the continent of
Europe except possibly vantage points
such as good cOaling stations for her
navy. This country, therefore, has no
important competitor in any contest there
may be in acquiring bankrupt estates.
There is a blemish on the picture Of
American wealth compared with that of
Europe, though it Is a small one. Our
exporters have incurred losses in ex-
change. Moreover there has been specu-
lations in marks among people of small
means in the United States. This has
been discouraged by experts In that line
but among the big foreign-born popula-
ton there are many who have taken the
ground all along that some time Germany
would be herself again and they have
bought rather freely of marks. But
merely their fingers have been jammed
while the great aggregate of our trans
action has left US in the commanding
position.-Copyright 1921, by Public
Ledger Company.