New-York tribune., 1922-09-24

embarrassed foreign trade. In sober
fact, we have given Europe, on govern
ment account $40 0,000,060,0 ,0iio worth Of
goods. and we have something more
than s1I GOO 900. 600 in more or less
doubtful paper to show for il. Great
Britain has put an item Of s25.00O,o00
in next years budget 70 cover interest
payments on her part of the loan, and
we are told that such payments are to
begin in October, but the item even OF
interes. on the Treasury holdings OF
foreign obligations would best be held
in abeyance, in estimating our inter-
national commercial, situation, until
the whole problem shall have been
further clarified.
Interest Account
That aside, our private interest ac-
count has been radically altered. VII
Iiams puts foreign investments in tae
United States at the beginning of 1924
not below $500 900. 900 and American
Investments abroad not below $1,000
000. 900, yielding US an annual net in
terest Of sl00.00o,000, against a pre-
war net interest payment on our part
amounting 70 $I60,000000, according
to Williams, or $3.50 100000 if Paish's
figures be accepted, The Federal Re-
o.
interest receivable during 1920 at
s125.000 ,0O0, and during the first nine
months only of 1921 at $150,000,000
Unless It's large figures for the un-
funded balance already referred to be
accepted, however, it is difficult to
reach such a result. The sum of S15o.
100000 is therefore taken as covering
interest receivable during the entire
year 1921. Even so, the change in our
pre-war balance of payments is SUI
fciently striking. and it is practically
the only marked change in our favor.
Let us glance at the other elements.
Our much touted merchant marine
be 1t said with all frankness, has prac-
tically collapsed with the first touch Of
adversely. The enormous growth of
our tonnage during the war is we'll
known story, and during 1920 almost
exactly half the entrances and clear
ances from our harbors were of Amer
lean vessels. Even in that banner year.
however, they brought but 40 per cent
OF our imports and carried away less
than Al per cent Of our exports by
value. During the last year, under
conditions of severe depression in
ocean business, entrances and clear
anees of American vessels were still
practically half the entire tonnage go
ing in and out, but they carried only
36 and 36 per cent, respectively, of our
imports end exports. and during De-
cember the figures shrank to 285 and
30 per cent, rising again to 1876 amt
369 per cent as the average of January
and February
Tourist expenditures during the
nine months of 1921 are estimated by
the Federal Reserve Board at $125, 600
600 practically the same as Paish's
and Williams's pre-war rate of $17O.-
600 900 year, while jmmgrants' re-
mittances during the first three-quar-
tera are placed at $300,00O,0 900 or
1900 100000 for the year AS the stat
tsticians of the board evince no incli2.
alton to exaggerate the invisible items
against US it is probably safe to ac-
cept these figures as not being over
statements.
A provisional statement Of the 1921
account for interest and services then.
erring, If at all, probably on the sido
OF understanding the net amount due
IRON IRON. US, stands somewhat as follows
(millions of dollars):
Interest ..,.,,............ -. 1kn
Shipping payments. ...... - 90
tourist expenditures. 1TO =
Immigrant remittances . 400
'GSst Net d,eli........:." ;de;lii.'''.'." s7S s7S zoo
On current account for interest and
services during 1921 we were thus in
dehted to the world by at least a third
OF billion, as against half a billion
or more before the war Aside from
the export of capital, the tendency
VIII manifestly be for this balance to
decline if interest payments are begun
on any part Of the governments for
elgn debt holdings, unless there should
De a corresponding change in the ac-
count for services not readily fore