Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1925-05-12
U. S. INVESTMENTS
ABROAD INCREASE TO
over $9,000,0OO,0OO

UVtk S,UUU,UUu,UUU
Washington. May 11.-(AP)-As a
result OF the foreign trade and finan-
cial exchanges of 1924. the sum of
American investments abroad has
been increased by about $1,000, 0OO,-
IVY 10 q total In excess Of $9,000,00
Announcing the figures today in
the third annual report of the COM
merce department on the visible
ana invisible" eoreign trade of the
United States. Secretary Hoover de-
clared that ''the United States is now
the worlds greatest investor"
Calculations made embraced not
alone the exports and imports of
commodities, the movements of gold,
and the expenditure of American
tourists, but took into the balance
the sum of $4,000. 600, representing
the estimated cost of bootlegged for
eigH liquors; the increase in deposits
OF Foreigners in American banks, es-
ttmated for the year at $216, 600, 900
the remittances to immigrants to
families in the old country, which
reached the surprising total of $780,
100000; and the missionary and
charitable expenditures abroad by
American religious and philanthropic
individuals, which accounted for
SIS, 100000.
When the balance was struck, the
nation was shown to have set I'D
a credit total in 1924 of $500, 900, 900
for goods and services rendered
abroad, while the countering total
or credits earned in this country by
foreigners which included the credits
arising from the lending of Ameri-
leans to foreign borrowers, was So
182, 900, 000.The difference was largely
accounted for by the reports of banks
that foreign borrowers and trades
had left $21e.000.000 on deposit
against future drafts.
The years developments gave the
United States a stronger position
than ever in International finance"
Mr.. Hoover said. 1.-THE Increasing
importance Of the invisible items in
explaining our international trade is
shown by the fact that in 1924 they
were equivalent roughly to 22 per-
cent OF our total exports, whereas in
the period between 1895 and 1914
they were reckoned as only eight
per cent. But their nature has
changed more than their magnitude,
and still changes from year to year.
Consequently such studies as this,
In spite of the impossibility of at
tanning absolute accuracy, are well
worth the preparation"
To work out the balance of inter-
national payments of the United
States. four groups were set up, the
first dealing alone with imports and
exports Of goods. The United States
was shown to have a favorable COM
modify trade balance of 1870, 900, 900
for the year, after allowance lad been
made, for the smuggling of liquor.
The $40,000.000 so assigned was said
to be lin the opinion of officials con-
nected with the customs service a
low estimate." considering the oper-
atoms Of the ships in Rum Row. The
'Invisible" items were then taken up,
and the earnings of the country from
previous foreign investment, figured
at $614,000.000 for the year; from
ocean freights, estimated at $780,
o0e, 900. and from services to foreign
tourists. estimated at 100000, 600;
were shown to total at $790.000,00
Foreign countries were estimated to
have earned $500. 100000 from Amer
lean tourists; $4,000, 900 from in
vestments in the United States, and
$68.000,000 from freight services.
These. with the Immigrant remit
tances they received, totalled $1,178,-
100000 and were sufficient to give
them a credit balance against the
United States on all invisible" items
Of 1888, 100000 for the year.
The study then considered the
movement Of capital and credits. BY
the direct process of borrowing, for
eigners obtained credit in the United
States in 1924 to the total Of $685.
100000 while they sent back $780,
100000 Of American, currency which
had been used by them for money
during the periods of acute currency
depreciation at home, and they sold
to Americans $4,000, 10000 worth of
various stocks and bonds in their
own enterprises. On the other side
Of the account, citizens Of the United
States sold 100000 worth of Sc
curities to foreigners. while foreign
ers paid of $45.000.000 Of existing
Indebtedness, and the English gov
eminent applied $2S.000,000 to the
principal of It's war debt. On this
series of exchanges the United States
was shown to have left $685., 000, 600
worth Of capital abroad.
Closing out the account. the United
States was shown to have imported
$258, 000, 900 more in gold than 1t ex-
ported for the year. and to have ex-
ported 5000, 900 more in silver than
it imported. The balance was struck
by the consideration of the foreign
bank deposits left in the United
States, with an error of 100000 in
dicated. Mr.. Hoover commented,
however. that some Of the items may
be as much as $100,000,0 600 away from
the truth"
OF the whole record, Mr.. Hoover
said It illustrated change from the
conditions Of ten years ago, when the
nation was heavily indebted to Eu-
rope," to q condition in which "the
dollar IL widely used in international
transactions even where the United
States is not directly concerned"
In calculating that the foreign In
vestrnSnts Of the United States had
been increased by more. than $1,000
100000, Mr.. Hoover was taking into
some additions that
must be made to the capital move
ment totals al found, arising from
banking credits, real estate pur-
chases, and assignments of interest
in business that are not covered by
formal stocks and bonds listed on
public marts. The report said that
"only surmise'' could be made as
to what the exact totals would be as
to capital Investment If these more
items of business balance
sheets could be estimated.
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