Evening journal., 1922-01-25
MONEY LOOKS FOR WORK TO DO.

interesting analysis OF the foreign trade situation
"A OF the United states is presented in the Annast by
Mr. E. Clemens Horst, Of San Francisco. Although Mr.
Horsts arguments careful scrutiny they do
contain some information that will furnish basis for
arguments on the part OF debt cancelstopss, among
whom Mr.. Horst apparently is not numbered.
According to the article mentioned, the United States
now has a merchandise trade balance OF some s200OO-
100000 accumulated since the outbreak OF the war.
In other words all the rest Of the world has bought
from the United States s2OOOOOOOOo0 than it has
sold to The United States, leaving apparent CONNER
|cia debt Of that amount to this country.
large part OF these exports everybody knows for
the account OF nations engaged in the portion OF
this S20OO0OO0OOO difference trade represented by
the Sii OOOOO0Oo0 those countries US government
obligations The remainder OF it, II an actual outstand
ing debt as Mr. Horst leaves us to infer would be the
form OF commercial obligations by individuals and cor
porations.
These figures are the basis Of assertion that II is
impossible for other nations to pay such stupendous
merchandise ndehtedness especially the trade bal
ance is still in our favor the extent Of s20oOOo0OOo
and more per year.
Mr. Horst undertakes to show that II We discontinue
our exports import goods TO the amount Of s2s62,
100000 per year. would nifty for the rest OF
the world to pay its obligations 10 the United
States with accumulated and accumulatng interest
II this were complete statement Of the situation the
outlook would be poor for the ultimate collection OF the
amounts due to the United States and its people
But there are several factors not considered in this
statement.
In The nrst place at the outbreak OF the this coun
try was commercial debtor largely through capital in
vesmens in this country by individuals and corporations
in B6rope British. German, French and other foreign
capitalists contributed large Of money toward The
financing OF American industries.
European money invested in railroad stocks and
bonds in banks in farm loan companies In Insurance
companies etc No one knows the extent OF these for
egn investments but II certain that they ran into the
billions.
large part OF our s2oOOoOOoOoO trade balance already
has been offset by the return to those securities 10 the
United States and their sale to residents Of this country
Just as foreign capital was invented in the Unitsl
states in years gone by we shall seen fact
now seeng-the Investment OF American capital abroad
In recent weeks we the announcement OF large
investments OF American capital in Germany, our indus
trial leaders seeing there opportunity for employment
OF capital at pront to themselves,
American investments foreign industries will trans
form our foreign commercial obligations into tangible
sets Of substantial value That portion Of the debt owing
TO the United Staes which is represented by national
obligations soon will be evidenced by bonds issued by
European governments in accordance with plan to be
devised by commission created under act Of Con-
gress.
After deductng s O0OOoOOO that will be evidenced by
foreign national securities and several more billions that
were represented by securities returned 10 the United
States since the outbreak Of the war and few bill
lions that will be represented by investments in sound
ndustr il enterprises in Europe and elsewhere any re-
naming trade balance will be SMALL that there need
be no concern whatever the question OF collection
II the situation were as bad Mr. Horst represents
sterling exchange would not be selling IN the neigh
horhood Of si22 TO the pound.