Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-01-13
BACKGROUND OF EVENTS
BY PAUL Y. COLLINS.

Judging from the comments of much
of the press, the whole stake of Amer
lea In the bolshevistic tendencies of
Mexico lies In the oil investments
which Gales threatens to confiscate.
So the man on the street." who
chances to own no oil stock, Is prone
to belittle the interest our Govern
ment should take in protecting the
oil companies. Others go even far
Their and declare that we should give
notice to all American investors that
il they carry their capital into foreign
countries they must look only to
the protection of the foreign govern
| ments, and not to our own Govern
ment. Such homemade statesmen
forget that the investments are in
vited by the foreign countries and are
safeguarded in all cases by the pledg.
ed assurance of the governments
thereof, in the form of treaties for
just such protection.
According to the Department of
Commerce, American capital invested
abroad amounts to SIC, 405 200, 900,
exclusive of the $4,000, 100000 and
unpaid interest of Government World
War loans to European governments.
OF that $10.405, 900, 900 of foreign in
vestments by American citizens and
corporations, more than 67.6 per cent
Is In the Western Hemisphere; 40.6 per
cent is in Latin America, and 81 per
cent in Canada and Newfoundland.
What will happen to the credit of the
investments of $4,210, 000, 900 in Latin
America ii Mexico can show 1t to be
easy to adopt laws that will confiscate
the American investments, as she con-
fiscateS estates Of Mexican landhold.
ers and Mexican church property?
Latin America owes us more than
does France, and, with the smaller
population than that of France, Latin
Americas debt to the United States
counting our imperiled investments as
"debts"-is greater per capita than
the French debt. Latin America has
had no invasion by ruthless enemies
as has France, and under due protec-
ton the investments will increase.
Our Governement is demanding that
the investments in Mexico be not
confiscated, but protected, as all civil
lized nations are expected to protect
all private investments.
How sensitive Is credit In 1900 our
investments in Canada. amounted to
$3.50 900 900; in 1918 to $3.50, 900 900. In
Mexico, in 1900, our capital was $780,
000, 600, while 10 years later it had
grown to $1,000, 100000. 1t 4ncrea sed
in Canada. in the 10 years before the
war 500 per cent, but in Mexico '007
per cent Canada stood squarely with
civilization in the World War, stand
ing for its high ideals of honor and
justice. Mexico dallied with the enc
mics of civilization, and later with
the SovietS, who demand the over
throw of organized governments, and
particularly the United States. The
result to international credits, which
are always sensitive to security of in
vestments is shown by the contrast
of the increase of American invest
ments in Canada and Mexico since
the World War.
Canada held Of American capital
investments, in 1918, $3.50 200, 900, and
in 1925 $2.82S, 900 900. Mexico held. in
1913. American investments, $1,050,-
600, 900, and 10 years later only ST.
1876 200, 900. Canada. increased in the
decade $2.075, 900 900, while Mexico
gained only $l45 900, 900.
American Investments In Mexican
oil lands are estimated by the De-
partment of Commerce at $475, 900, 900,
in mining at $275, 200, 900, in plantar
lions, $500, 100000.
The astounding contrast between re-
cent American Investments in Canada
and Mexico cannot be attributed to
American prejudice in favor OF Eng
fish speaking peoples, for Latin Amer
lea Excluding Mexico) shows develop
ment of American confidence and in
vestments greater in proportion than
does Canada.
American investments grew in rs
years 1890 to 1929 In the following
amounts in the countries named:
"a Tnn