The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1927-05-05


ing commentary on the stupendous
worldwide financial grasp Of Wall
Street is afforded in an unheralded
monthly statement gotten out by the
Finance and Investment Division of
the Department of Commerce.
According to this report during the
last month, April, 2O7,0OO,0O0 in for
eign loans was placed by Wall Street
in the United States; a sum that ex-
ceeds that Of any other month in the
whole history of foreign financing in
the United States. In April, 1926,
foreign loans amounted to SAL ,000,-
600.
Loaned to Everybody.
The loans not only went to govern
ments, national and municipal, but to
industry and business. Europe was
the heaviest borrower, with Latin
America second.
European borrowing in this market
during April took the lead over Latin
America, which held the lead during
the past two quarters. Canadian
loans during April also exceeded the
Latin-American total. The European
total of about $92,000,000 was COM
posed mostly Of the large government
tai loans of $30,000,00O each to the
city of Milan and to the Kingdom of
Yugoslavia, the S12,OOO,OOO of the
State Mortgage Bank of Yugoslavia
and the $2,75O,OOO of the city of
Trondjem, Norway. The balance of
the European loans went to various
corporate enterprises.
Less to Canada.
For some time past the amount of
Canadian borrowing in the American
market has been falling off. A sur
vey of the April total, however, in
dicates that Canadian offerings are
still being made in the money mar
ket Of this country. The total par
value of Canadian securities floated
here during the month was S58,000,-
900; of this total but $23, 100000 went
to governments, and municipalities
and about $35,000,000 to corporations.
In all there were Is Canadian issues,
while the total of all other issues for
the month was only 10.
Mostly to Governments.
The predominance of government
loans over corporate, which character
lied foreign financing in the United
States in the fourth quarter of 1926
and the first quarter of 1927 contin-
ued in April when the value of gov
eminent issues amounted to about
21s times that of corporate issues.
1t was pointed out in the depart
ment's survey of foreign financing in
this country during the first quarter
of the current year that January,
1927, witnessed the greatest monthly
amount Of such financing during the
period and probably the largest
amount ever recorded in this country.
The April total, however, surpassed
the January takings by about $751;
100000.
Hoover VS.. Kellogg.
Of interest and significance equal
to that Of these statistics is the at
titude Of Secretary of State Kellogg
and Secretary of Commerce Herbert
Hoover on these loans. Hoover, talk
ing before the third Pan-American
commercial conference now being held
in Washington, the delegates are bust
ness men and financiers from Latin
American countries, declared that
private American loans to foreign
countries should be permitted only for
reproductive purposes"
Hoover is highly skilled engineer.
Every now and then, when he lays
aside for a moment his political mask,
he delivers himself of some intelli-
gible reasoning. The engineer in him
predominates and he talks efficiency
and reason. In his address before the
conference in discussing foreign loans
he INDUCED himself in one of these
lapses.
Loans to foreign countries, Hoover
said, for such purposes as balancing
the budget or buying arms operate to
lower the standards of living Of the