Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-08-05

Rubber products ......... 6S.0o00oC
Some of the commodities we bought
abroad were:
Silk Observation-Disclosures, S430.000 0O(
Rubber Observation-Disclosures. 100000 00C
Coffee Observation-Disclosures. 322 900 00C
sugar OBSERVATION-DISCLOSURES. 1oo,uuu,uue
Paper OBSERVATION-DISCLOSURES, l4S,uuU,uUl
FurS Observation-Disclosures Ioo.uV0Uut
Oil Observation-Disclosures. 10000 00C
Hides and skins ,........, 1l2,000ooC
Tin 100 900 DOC
Conner .......,...... $4,000. 00C
Art works ........... $4,000, 00C
Dollar diplomacy used to be a term
of ridicule directed at the United States
on the assumption that Americans were
more concerned about the almighty
dollar" than they were about anything
else. whereas the foreign critics sup
posed that their diplomacy had loftiel
aims.
It is difficult to find diplomacy prac-
ticed by any nation which does not al
some point or other vitality concern
trade, and therefore the medium of ex-
change known as money, so that the
was just, while today all other nations
frankly reveal the vital interest they
have in the commercial side of diplo-
macy
The Department of Commerce has
Just reported that the United States
sent the staggering sum of $3.50 000,-
900 in gold TO foreign nations during
the fiscal year ending June 80. Back
of this redistribution of gold which
the United States had accumulated dur
ing the years following the war when
European nations especially. but many
others IN South America and Asia
were financially disorganized and eco
nomically struggling to recover bal
ance, is new phase of dollar diplo-
macy of striking importance.
The phrase referred to is the prac-
stice of asking American financial ex.
perts to visit foreign countries to aic
in sterilization plans or to be wit
nesses to the fact that funds borrow
ed in the United States are expended
wisely and so to reaSsure American in
vestors, who. after all, furnish the
money foreign nations borrow The
borrowing by foreign nations and in
tereSts last year was $l,593. 100000, as
mentioned.
First among these financial amhassa-
doris must be mentioned s. Parker Gill
bert, agent general for reparations pay
ments. who holds virtually the ke3
position in European finance by vir-
tue OF his supervision Of reparations
paid by Germany under the Dawes
plan.
Selection of Mr.. Gilbert for this no
sitiou was followed by or coinciden.al
with other such selections, notably that
Of jeremiah Smith, who put Hungary
back upon a sound financial basis.
! Then there was the outstanding seiec-
ton Of Dwight W. Morrow as Ambas-
Sador to Mexico, whose services have
ranged much wider than those of the
ordinary diplomat, for he left thI
banking firm Of j. P. Morgan &C. Co IL
take up his post at Mexico City and his
counsel there on financial matters is
we'll understood to have been of inest.
nable value.
Perhaps not so much noted by ths
public but closely watched by financierS
was a visit to Japan last year by
Thomas w. Lamont, also a partner II
the Morgan firm. Japan had been
through severe money crisis in April
last year when a moratorium was de-
ciared by banks for three weeks. Mr.
Lamont on his return expressed conf
dence in the financial strength OF
Japan and this treasured American in
/ vestors In the bonds Of that country
as well as investors all over the world
Charles Dewey, formerly an Assistant
| Secretary In the Treasury Department
| is in Poland helping that nation TO re-
/ store its finances and industry Ar
/ American banking group is arraging a
| large loan to Rumania and il is posi-
] bic that an American may be selected
| TO help IN the readiustment there. The
I outflow Of American funds as loans
/ often Is accompanied by American ex-
/ perts whose presence abroad is an In
/ fluential factor in international credit
ratings.
| TO indicate more definitely the sig
nifcance Of this use of American finan-
/ cial experts ii is only necessary TO point
/ 10 the bond market. A trip by Mr.
/ Lamont to Japan and a favorable
/ opinion expressed by him Of Japan'a
| financial resources probably prevented
a disastrous slump IN prices Of Japa-
| nese bonds in the United States. In
| vegtors sometimes lack fun information
| about foreign situations so that j
| events Of a disturbing nature are re-
| ported IN nations whose bonds Amer
/ cans own they sometimes sell pre-
cipitately with unnecessary losses. Blu
| If an eminent American financier Il
! on the spot or visits the country anc
gives reasauring reports on the situa
| ton the American investors are saved
from unWise selling Of securities.
| There is no doubt In financial circle
! that Mr. MorroW's presence at this tim
IN Mexico has prevented a much large
| decline IN Mexican securities held II
the United States than actually &C
CURED coincidental with the assasgioa
i ton OF Obregon. Mr.. Lamont ais
figured In this situation because he va
on the international committee that ar
ranged a settlement of Mexico's foreigl
loans, and he expressed confidence tina
Mexico would weather the storm.
A strong influence for world peace
ezerted by huge foreign loans. Fac
nation nov heavily indebted 10 Ameri
can investors knows that it's credit her
depends upon confidence among Amefi
cans that peaceful conditions viii pro
vail abroad These borrowing nation
do not want 70 suffer the credit losse
that would follow Warlike moves an
actual warfare Az serious AZ report
Of friction may be, II Is believed tina
without the steadying influence of ioan
|. and prospective loans a far more crit
/. ical situation would exist IN many parl
! Of the world
Chinese leaders are giving though.
J the same consideration. To get eapiti
necessary for the development OF Chin
. II will be essential 10 convince ii
! nations which have capital 10 len
! / principally the United States, that LOAF
i 10 China would be safe both as
:. payment Of interest and repayment
; principal The loans referred 10 al
!. by private American banking interest
because the United States Governnlel
III rot nov making loans In the WI
! they were made during the war
!. An impressive amount Of gold n
j been sent to South America Ia Il
: last fiscal year, Argentina taking sl3i
i 100000 aud Brazil $5S 600. 900. no
a Continued on Third Page