Evening star., 1926-04-10

IF the national wealth be express
ed on per capita basis, the showing
during recent years is still less favor
able. The population of 1912. accord
ing to the official midyear estimate Of
the Census Bureau, was 95 ,097 900
making the wealth 1880 per capita
In 1922 population had increased L"
109 ,24S.000. or 1886 per cent, so that
the 10.6 per cent increase of tota.
wealth at 1918 prices gives a per
capita of only Sl.SS5 in 1922--an ac-
tual decrease"
Mr.. Benz jamin VI. Anderson ir.. PA
D.. economist of the Chase National
Bank of New York, said, in u speech
before the St. Louis Chamber OF Com
merce:
Our foreign business has grown up
as an adjunct TO our domestic buSi-
ness, and is necessary as a means OF
holding and promoting our domestic
business
Mr.. Anderson points 10 the fact thai
the percentage of foreign securities
tsold last year on the public market
was only l45.' and domestic securi-
ties S5.j per cent.
Mr.. GrosVenor NJ. Jones. chief OF the
finance and investment division of the
Department of Commerce. in speech
before the New England Foreign
Trade Convention elaborated the
same idea of Mir. Anderson-that our
foreign investments and loans were
essential to the stabilizing of our own
home manufactures. He said
The development of many manu-
featuring industries has reached
point al which. if these Industries are
to be fully and efficiently operated. Z.
certain proportion of their production
must be exported regularly. The eN-
portation in many cases must he
facilitated by loans placed i'm this
country. The manufacturing
industry pf the United States has
moreover, become so extensive and
diversified that it must draw inCreaS-
ingly upon foreign countries for q
wide range of raw material.
There is a general misapprehensiou
says Mr. Jones, as to what happens
when foreign loan is granted here
The loan is almost never carried out
of the United States in gold. but is
expended here. and taken in commodi-
ties. 1t therefore creates a home mar
ket for the products of American
labor.
IF this had not been the case
says Mr.. Jones. I'VE should have had
a great outflow of gold. whereas there
has been a great net inflow of gold
that has been not a little embarrass-
ing 10 our farSlghted tinanciers. as
well as to those who control the
destinies of our currency and credit
system.
THE question naturally arises. VIII
it prove wise and profitable in the
long run for the United States To
export capital? There can be little
doubt. | believe. that for a number
OF years the export of capital would
be advantageous. if it were kent
within proper limits and if it were
covered by sound loans to stable gov
ernments and reliable enterprises, or
by reasonably safe investments
Mr.. Jones argues that by aiding in
developing new countries. rather than
Europe. and especially tropical coun-
tries which produce what we ourselves
cannot produce. we will create new
markets not only for American goods
but for the goods of Europe. and
thereby assist Europe in becoming
able 10 pay her debts. without depend
ing upon invading the American
market at the expense Of our own
wage-earners.
Before the World War, the United
States was debtor nation, American
capital invested abroad amounting to
$1,000 900 900; today our foreign in
vestments and loans. aside from the
$12 600, 100000 loaned TO the govern.
ments, amount to Si0,500 ,00O, 900.
Prior to the war, foreign invest
ments in American securities amount
ed to about $4,000 900 900; now only
half that.
book by Robert w. Dunn, entitled
American Foreign Investments" ius,
published. contains this paragraph
(p. y:
"The year 1924 established a. new
record in foreign financing. Accord
ing to the United States Department
of Commerce, foreign f1otations public.
ly offered here during 1924 amounted
to $1.209, ,7S6,4S4. OF this amount
$332, ,26S.00 was for refunding pur-
poses, the balance, SS77,51S,4s4. con
stituting new capital subscribed TO
publicly offered foreign loans, both
governmental and corporate. When
it is remembered that the total
nominal foreign capital fiotations dur.
ing the previous year, 1923, amounted
to only $53S,315. 500, it will be seer
that the year 1924 witnessed a more
than 100 per cent increase III rapita.
subscribed for foreign securities"
tcopyright. 1899. by Paul v. coilinsb