Evening journal., 1922-07-10
S2,0O0,O00,OOO
LOANED
Enormous Amounts Ad-
vanced to Others Since
Close of War
GOVERNMENT
KEEPS INFORMED

MAShlNGIONs July lV.-<AiIlei
lean capital in the sum OF s1,345.'
los, 500 has been loaned to the ma
tions of the world within the las
s months, and II the government
record were complete It would prob
ably show that nearer $4,000, ,00O,-
{ 900 had been borrowed in the money
market Of the United States since the
close OF the war.
This IS the answer which this Gov
ernment makes 10 the complaint,
sometimes heard abroad. that Amer
ica is falling in its duty to the aid in
the rehabilitation OF Europe or in
the promotion OF prosperity in the
nations of this hemisphere.
No such volume OF international
borrowing. It Is declared. ever has
y been known in a period OF peace as
has been made possible by the in
vesting public OF the United states
since the signing OF the armistice.
Nor is It over with. The Govern
ment Is advised that still further
foreign bond issues are 10 be offered
by the American banks.
Before the war England. Germany
and France were the leading lending
nations OF the world and each used
its foreign loans systematically to pro-
mote its foreign trade. Since the
war the international borrowers have
turned almost with one accord 10
America for ready money and few
of them with any credit at all have
been turned down.
Early last year the Government
became concerned over the extent to
which foreign nations were floating
securities in the American money
market and. transactions OF inter
national bankers. the President in
vited a groupe OF those bankers 10
the White House. Also he requested
his guests 10 submit for examination
and approval all proposed foreign
loans before such loans should he
underwritten.
This was done that the Govern
ment. would be called upon for as
sistance II a foreign debtor should
default. might be fully informed re-
garding credit extended and might
further inform itself as TO the pur-
poses for which the money loaned
would be used. It IS stated in off,
cial quarters that while the Govern I
ment has not imposed any restric-
tions upon the borrowers OF American I
money. It has encouraged the practice /
of expending II for constructive pur-
poses.
Nor have the Government or Amer
ican bankers so far insisted that ANY
part OF loans negotiated by foreign
ers in this country be expended for
American goods, although there have
been repeated limitations in official
circles that soon or late some such
condition would be required.
State Department records show
that during the calendar year 1871 n
grand total OF $3.50. 800. 900 was bor
rowed through American bankers by
foreign governments and corpora
tions. OF this amount s161.917, 900
went 10 foreign corporations and
Sass. 1856. 900 went 20 foreign govern
ments. municipal. State and national.
There are no accurate records
available, IL seems Of the loans ex-
tended between the date OF the ar
mistice and the beginning OF 1921
Some money was borrowed during ,
that period-several millions OF dol ]
lars bur heavy lending 10 foreigners ]
did not really begin until about 1s I
months ago. '
During the current year even great
er amounts OF American money have ]
been borrowed than during any ear {
lier period The total for the six J
months ended July 80. It appears, was
s7O3. OO5. 500. the greater part going !
10 foreign governments. but with an t
increasing amount being loaned to G
foreign corporations. Up 10 March q
81, for example. foreign corporations
had received 1921. 100000. as COM
pared with s263,OOOOOO for foreign
Since March 81 the loans have
been unusually large. In April for q
example, a total OF s2O7. 100. 900 was 7
loaned, more than in any previous a
month. In May the total amounted u
to s34.32O.O 900 and in.June It amount
ed TO s11s.775.SOO.
Canada has been the heaviest bor- Q
rover in the American market. with n
France second and Brazil third in the 8
list. The more important loans dur o
Ing the past IS months. according 20
me records in Washington, by coun- r
.ries. are as follos: 1