The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1925-08-03
US IS FINANCE
CENTER OF
WORLD
Banking Power Increases ia
Twelve Years From Is
to so Millions
By RICHARD HATTON

BY RICHARD HATTUN
Further evidence that the United
States still holds the dominant place
In the financial universe is found
in the fact that New York seems
TO have definitely replaced London
as the world money market.
"The United States has developed
iamazing precocity in its somewhat
recent and swiftly acquired dual
roles as worlds banker and chief
creditor nation, declares trust COM
panfes in the leading article in its
July issue which appears unde. the
heading: New Attitudes in Banking
and Finance. That there Is ample
money in this country available Tor
foreign Investment is found in the
statement that: Seemingly mex
haustfbIe supplies of capital and
LIQUID funds are forthcoming Tor the
ABSORPTION OF foreign loans and m
yestments. Velocity Of credit, bank
ing and investment expansion mas
reached & stage that Is WllnouI
parallel in the history OF this or
any other country. ,-4.s
THE magazine finds that drastic
organic and economic changes nave
taken Mace in the American. bank
ing position and finds. ma mag
y1f,de and far-reachingl aspects OF
auch operations" It declares, IN
yolving both foreign and donesllc
commitments. find sufficient ILL.
NATION. In recent half-yeariy SUIT
veNs and statistical results 20 at
rest attention and stimulate serious
fi1oIigl1t as to significance of rising
Drices and possibilities of initiation.
Banking Power Grows
Associated with this tremendous
development there is constantly in
creasing banking power. reflected
by notwithstanding clearings and
debts, growth of deposit liabilities.
and what is perhaps most note
worthy, the translation Of banking
credits into non-commercial loans
and investments. .
Tfaf the American public has
not been slow to put its money
into foreign investment Is found IN
the fact that american investment
holdings in publicly offered foreign
securities now aggregate $g,6OOs-
O50. 900 yielding annual interest re-
turn of approximately $3.50, 100000. |
This total embraces $626s000, 900 alb |
sorbed thus far In 1925, and includ- |
ing the recent Australian Issue. /
which represents the first extended /
loan negotiated by that common
wealth outside Of the London mar
ket." Other financial publications |
have commented upon the Aus |
traiian loan as indicative OF the
= Zen N. 70 w. - financial AFFAIRS. |
.aTo visualize this nations cred
flor position. continues trust com com,
p par les aoa nea var'ti h. debts Of
foreign nations to the United
states Government, plus banking |
and acceptance credits winch cS
tapllsn an NE ne aoo =
siice % ~ 81
s0a ooo 1oo before the war in the |
shape of foreign holdings of Amer.
lean securities.
such revolutionary change In |
international status" says trust |
companies, together with organic |
as well as economic changes in our |
banking and currency systems, |
have released new forces and ere
.zted a situation that may well |
challenge the best banking and IL |
nancfaI minds
Stressine the necessity for care |
4nJ anaIvsis and FORESIGHT ON the |
,1a,-t ~ A,,,arica,, finoncieys tho 1
- -, eo,,+i,~,,as. 4VVifbin fla
. -lla - 1.a 81 -harl,sre |
-. em re aas.. .e ~ nan
$3.50! p1m u .s s t,,.-aasS ,res,s,