Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-07-10
DECLARE AMERICA
WORLDS BANKER"
Financiers in Farley Learn
of s14,0o0,O 900, 900 Loans,
Exclusive of War Debts.
BY FREDERIC WILLIAM VILE.

America is the worlds banker
From a debtor nation owing $1,000
100000 abroad in 1914, the United
States in 1927 has become a creditor
country on a prodigious scale. BY
the end Of this year Uncle Sam will
have outstanding, as loans to for
eign governments and foreign COR
porations, The fabulous total of about
$4,000, 000.00 This sum is exclusive
of the European war debts of SILL
900 900, 900, which the United States
Treasury is carrying on its books
as bills receivable.
The flow Of American gold across
the oceans is ceaSeless. 1t has just
heen officially announced in Wash
inSton that S7SS6S4,075 was sent
abroad during the first six months of
49, As American credits overseas
aggregated $4,000, 100000 at the end
Of 1928. they will he leaning toward
tho $4,000. 100000 mark within
Another wear. No nation in history
has ever held so colossal a mortgage
en the treasures and enterprises of
foreign countries. Roughly. these are
= paying to United States investors a
total of $700.000,000 in annual in
tereSt.
Facts and Figures Cited.
Facts and figures attesting this
amazing state Of affairs have just
been issued by the Foreign Policy AS
ISOLATION of New York, apparently
apropos the arrival in this country of
the governors of the banks of En-
gland, France and Germany. MessrS
Norman, Rist and Schacht are con-
cealing the real purpose of their dis
. cussions with the Federal Reserve
Bank at New York, but one well au-
thenticated report says they aim,
among other things. to lift the en-
+ barge the United States has placed
upon loans to countries which have
not yet funded their war debts here.
This means in particular France,
which has been denied access to the
. American money market in the mean
time.
This country imposes still another
kind of embargo on foreign loans.
: They are not to be had by countries
which would artificially raise the
price of certain commodities to the
American consumer. Brazil, for in
stance, has been refused loans in the
United States because of her govern
mental policy of controlling the price
of coffee. The German potash syndi-
cate received the cold shoulder here
because of its discriminatory tactics
against American fertilizer consum-
ers. 1t happened that Ii rdon
branches of New York banks, not be- |
ing under Washington's influence, |
fioated both Brazilian coffee and Ger
man potash loans on good terms. !
France, too, has been getting money |
in Holland and Switzerland. while her |
loans are under the ban in America.
Authority on Loans Quoted.
The Foreign Policy Associations |
authority for foreign loan conditions |
Is DR.. Max Winkler, well known in !
the financial world. DR.. Winkler sets |
forth that even the impressive totals |
of Commerce do not begin to tell the
of Commerce do not begin to tell the
whole story of American credits
abroad For example, Winkler esti
mates that our 1926 loans to foreign
countries were 1881. 963, S61; This is
more than $500, 900 higher than
what he calls 1.-The orthodox esti-
mates issued officially at Washing
ton. He asserts that the 1925 official
estimates were almost billion dollars
short of the real figures of our inter-
national loans in that year, which he
totaled at $2,206 ,01S650. DIR. Winkler
explains his larger figures by the fact
that he has been able to include not
only new foreign issues OHefeQ Tor
public subscriptions, but also securi-
ties underwritten here and placed
privately with American investors.
Another item, which official estimates
do not take into consideration, Wink
Ter points out. is direct purchases of
foreign property not involving the
sale of securities. acquisition by Amer
leans of foreign securities already out
standing. and the purchase of internal
issues, both stocks and bonds.
American Dollars Kept Rolling.
Our dollars are literally rolling all
around the globe. There's hardly a
civilized region in either hemisphere
where they're not at work as capital
loaned to domestic governments or
business enterprises. In 1926 Amer
lean funds were placed at the disposal
of either state treasures or corpora
tions in the following different coun.
tries: Baden, Bavaria, Prussia,
Saxony, Wurtemberg, Belgium. Hun
gary, Czechoslovakia, Denmark, Fin
land, Greece, Italy, Jugoslavia, Aus
tria. Norway, Poland. Great Britain,
Spain, Latvia. Ireland, France, Rus
STA. Gutenberg, Canada. Argentina,
Chile, Colombia, Peru, Cuba, Brazil,
Venezuela. British Guiana, Costa RIGA,
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