New-York tribune., 1922-09-24
Political Conditions

In judging the significance of these
figures, the disturbed political condi-
tions of 1919 and 1920 should be borne
in mind, however. If sum even ap-
preaching three quarters Of a billion
was placed abroad during those years
under such conditions, a growing out
flow of capital, which may well attain
very large dimensions, may easily take
place as the world gradually settles
| down to paying it's way, The Federal
Reserve Board places the net private
investment of American capital abroad
during the first nine months of 1921
at $250,000,0 900, and the return of
American securities during the same
period at $40,00000 This would be
at the rate of practically 100000, 900
for the year, and the evidence avail
able indicates that the actual placing
Of American capital was in excess of
that figure.
A compilation courteously furnished
York gives the total of foreign gov
ernment dollar loans issued in New
York during 1921 as $511 100, 900,
against maturities for the same period
approximating 1902 100000. These fig
ures show an increased investment of
more than three hundred millions. Ac-
cording to the same authority, the dol
lar loans issued by foreign corpora
tions and American corporations doing
their principal business in foreign
countries amounted to $166,542, 1866.
Adding only the forty millions Of
American securities returned reported
September 30, We thus reach round
half billion, without making allowapce
/ for investments placed directly in
/ other than bond form. 1t seems fairly
/ safe, accordingly after making all al
| lowances, to assume an outward flow
| of capital during the year coming to
at least half-billion.
/ Yet further, foreign issues publiclS
advertised in New York during the last
/ quarter of 1921 totaled $203, 900, and
/ during the first quarter of 1922, $685.
100000 The total for the six months
ending with March, 1922, was thus we'll
IN excess of the total new foreign Of
ferings Of the entire year 1919 ($43s,-
00O,000) and almost equal to the $780,
| 600, 900 Of 1920.
Speaking before the American Manu-
facturers' Export Association on June
/ IL, 1922, Mr.. Pierre Jay said: an the
twelve months up to May l about ST.
00O,000,0OO of foreign loans of many
countries, cities and industries were
readily taken here. The readiness of
the country to absorb this huge amount
OF foreign loans has ben surprising. 4"
The success of recent foreign bond Of
terlngs has bene SO great that bankers
are bringing out large issues in rapid
succession.
It may wewll be, as suggested by
Mr Noyes, in the article already men
toned, that the careers of Great Brit
am and France are no criterion for the
United States. But sober examina-
tion OF historical facts and of our
present position, especially in view of
the developments of the last eighteen
months suggests the probability that
we stand dat the beginning of period
IN which foreign investment will pro
ceed IN increasing volume; that such
investment will follow much the same
ines as those taken by the foreign
piaclngs Of other highly developed
countries; that our export industries
wwill be built up by the use of our
investment power, and that our invest
meht, shipping and trade policy will
De SNAPPED TO meet the common desires
OF the foreign investment banker and
the export manufacturer in developing
that policy we need to avoid the nit.
falls of that imperialism which nlnneed
Europe into the great war. II we are
wise we shall not yield to the subtle
temptation to increase the immediate
gains of our investors and traders by
putting the resources of our diplomatic
establishment, backed by the threat
OF strong military and naval forces
lnolscrimminately at their disposal
For the general proftableness of for
eign, as of domestic trade, depend:
upon its yielding a fair and unfcrcet
division OF advantage between the tw,
parties TO the bargain. The United
States is rich and powerful enough t.
pursue an intelligent and generou.