, 1925-01-08
AMERICA IN WORLD FINANCE

1t Is highly interesting to read the
announcenet made by financial lead
ers. that in the past year American
investors have received In interest on
foreign Investments a total of $780,
900 900, exclusive of interest paid
u tho United States Government on
It's war loans. This interest was paid
on stocks and bonds and other forms
Of securities given by foreign coun-
tries. municipalities. corporations or
business concerns, and held by citi-
hi Of the United States.
The figures are not entirely accu-
rate, as estimates seldom are. but even
II approximately correct, they dndi-
cate the extent to which the people
OF the United States have become
factors In International finance. The
people thus Interested are not limited
70 the large capitalists but include
tho small investors who may have
bought only a small bond issued by
some European government, city or
Industrial concern. Banks which
have floated these foreign loans do
not hold the securities themselves
they sell them to the American public
It would be a mistake to assume
that this $%750.OOO.0 900 is clear gain
10 the financial United States. The
fact Ia that many Europeans hold
United States bonds, the bonds of
American cities. and the securities Of
American corporations. On those Sc
cnritfes they collect annual interest.
which counterbalances to some extent
II not entirely. the interest paid to
Americans.
When conditions become unsettled
n various European countries, and
especially when. capital taxes were
proposed, investors in these countries
shifted many of their holdings to
American securities as a matter of
caution. AS a continuance of that
caution, the interest on their Ameri-
cAn investments may not be going to
them In Europe. but may be placed to
their credit here. awaiting a time
when It can be transferred without
danger OF conflscation by taxation or
Of the war there has been an I'M
known hut large quantity of wealth
senuested In the United States but
subject to the command OF citizens
OF foreign countries. Considerable
quantities of gold in the United
States have been described as ''ear-
marked, OF subject to expectation
When Its owners call for it.
Nevertheless, 1t Is highly pleasing
to know that Americans have become
heavy investors in foreign securities
and are continuing the policy OF max
ing foreign investments when the
proposed loan looks attractive. Time
vas when America had practically
foreign Investments but good
money was constantly go
anE out In large amounts to pay to
eUeelgn investors the interest on their
American Investments.
,Coincident with tho estimate OF
&750 900. 900 paid to Americans in
kntoreaf In the past year. there ia
nm the estimate that in 1924 Ameri-
cans invested approximately a billion
u additional foreign securities. bring
Ing the total of foreign securities now
AaAd by Americans. exclusive of Sc
held by the Government to
more than $4,000. 100000 Many
public loans in foreign countries have
Aeen fioated In the United States in
tha past year, and in almost every
the loan was quickly sold.
All OF this shows that the people
u the United States. like their gov
arnment. have no spirit Of isolation.
khey arc prosperous and willing to
Invest In foreign securities II there
D0ems to be a reasonable degree OF
Tho United States has con-
In the future of the world
and of the nations which compose II.
By their foreign investments the
American people are betting on their
Judgment In the ultimate restoration
u the world to the prosperity of
peace-time activities.