The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1925-01-09
EDUCATION THROUGH FOREIGN
LOANS
minneapolis J0urnaD

One Of the most valid objections
to American interference In Old
World affairs is rapidly, II quietly
disappearing. 1t was rightly said
that the people OF this Country
often knew too little OF other ma
tons to be able to translate their
own good intentions into truly
helpful action. For the last two or
three years, however, the United
States has been subjected to re-
markable campaign OF education
This has not been fostered by the
League of Nations or by any of the
regular international agencies, but
has been the inevitable result of
the general opening of the Amer
lean money market TO foreign Dor
rOWerS.
In 1924 alone our banking inter-
ests have assisted foreign govern
ments and corporations to borrow
more than a billion dollars in the
United States. These transactions
have varied from the great "recon-
struction" loan OF $50 millions to
Japan to such modest credits as
the Z millions granted to Hungary.
Private enterprises have also come
in for their share. When it is
realized that prior to 1924 Amer
lean corporations were regular
borrowers in London, Paris, Ber-
lin and Amsterdam, and that be-
tween 1914 and 1916 Britain paid
for her great war purchases in
America largely by shipping back
to rs our own securities, the re-
versal of the situation becomes
startling.
We have perforce become credi-
tors, both because the rest of the
world needed our capital to re-
cover from its general crisis, and
because our home territories did
not present sufficient fields for our
surplus investments. Having be-
come creditors, Americans are now
compelled to become intelligent
creditors. The great banking
houses that handled these loans
have first of all, for their own
sakes, to satisfy themselves as to
the soundness of foreign conGi"
tions. Next they have to convince
their clients that their money will
be safe, if they purchase the bonds.
One of the most significant things
about these loans is said to he the
way in which they have been alb
sOrbed not by Il few huge inter-
ests. but 10y a multitude of private
investors buying in small units.
Today there are Belgian, or
French, or Argentina or Norweg-
ian bonds in thousands of snug
little safe-deposit boxes all up and
down the land
Most of these Investments are
safe and conservative, but it may
be taken for granted that every
holder, for example, of an Aus
trian seven" is going to scan every
bit of news about the former do
main Of the Hapsburgs, and learn
matters about Vienna and SalZ
burg in which a few years ago h.
took not the slightest interest. He
is going to follow every ripple in
general European politics that may
affect his bonds. There is usually
s.
curiosity about business than to
make an investment in it. Today
every American holder of foreign
bonds is studying Old World poll
teal and economic conditions, and
he is learning much more than
simply about the market value of
his securities.
London has long been, a great
clearing house for international
information largely because of the
enormous investment of English
men in every country on the
planet. The like is rapidly becom-
ing true of certain centers in
America. and knowledge must al
ways be the father of true help
fulness. Thanks to the great for
eign loans, We shall hear less and
less about national isolation"