Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-03-22
j. s. LOANS ABROAD
EXCEED Is BILLION.
All Records Are Broken-In.
creasing. at Rate of Bill
lion a Year.


reached the fabulous total of SIS, $780,
100000. They are increasing at the rate
of from sl,000,000,0oa to $l,500.000 900
year. The amount of American capt.
tai loaned to foreign governments and
private enterprises in 1928 broke all
records, with a grand total of $2,096,-
O4l,810. The extraordinary figures of
these overseas operations have Just been
made public by the Foreign Policy
Association in an analysis by Dr. Max
Winkler, New York banker and interna-
tional flnancier. He shows that Uncle
Sam has become the worlds banker and
creditor on a scale unsurpassed in all
history.
Yankee dollars are rolling all over
both hemisphereS. Europe last year
absorbed the lions share of them. In
Europe by far the largest borrower of
American capital was Germany, which
was loaned 22,442, $50 out of total
for all Europe of $l,147 ,304.350. In
South America in 1928, S577,618.060
was invested; in Canada, 1859, $50 900;
in Central America, $57,487, 300; in
Japan. China and Australia, $751;
$4,000, and in various other parts Of
the world, s72,470,000.
Most Invested in Securities.
About three quarters of the funds
sent abroad from the United States are
being invested In the securities of in
dustrial corporations, banks or public
Is loaned to national governments, pro-
vincial states and municipalities. A
considerable sum t$69, $40 ,000) was put
at the disposal Of investment trusts,
which are becoming features of the
foreign capitalistic world to the same
extent as in the United States,s
DR.. Winkler points out that our for
eign lending is not so alarmingly large
as some people are inclined to, believe.
Our annual lendings abroad he
says, "aggregating less than SIT per
capita, compare with an estimated per
capita wealth Of the United States of
$4,000; with an estimated annual in
come OF $3.50 per capita; with annual
per capita savings of $167; with our
yearly commerce of 500 per capita. and
with annual revenue of the United
States Government of about $33 per
capita"
The confidence of American investors
In the economic recovery of Germany
Is exemplified by the fact that SO per
cent Of the 81 per cent, which total \
European borrowings in 1928 represent
in the aggregate export of our capital
last year, went into the Fatherland
OF the $422, 442,,T50 German investment,
1851 ,192,750 is accounted for by the
loans to corporations, as distinguished
from governmental borrowers. The big
gest individual German American trans
action was the Investment by General
Motors Of S2l ,420, 900 in the shares of
the Opel Automobile Co., the largest
German motor works. The North Ger
man Lloyd Steamship Co. borrowed
$l2,075.000 here on its shares.
Power Firms Borrow i'm U. S.
Another famous German industrial
concern, the GelSenkirchen Mining Co.,
was accommodated in the United States
to the extent OF q $15,o00,000 bond is
sue. The corporation, which conducts
the celebrated annual Leipzig Trade
Fair, hoated $4,000 900 of bonds In the
American market. Numerous German
power companies Borrowed money here
in sums up to as high as $40 900 900
in one case. Even the German Roman
Catholic Welfare" organization sold In
the United States z per cent bond
issue of s., 000, 600. The state of Bavaria
and the cities of Berlin, Cologne and
Frankfort-on-Ma were helped out to
the extent of SCI, ESQ, 900.
DIR. Winkler's analysis, which Is en-
I1bleQ 4Ile 1OlkhL ApIOdQ, SHOWS t1ldL
American investments are regionally
distributed as follows:
Europe ...................... S<.7es,ooo, 900
Canada Observation-Disclosures. 4,l20,0O0, 900
South America ............... 2,51S, 000, 900
Central America Including
dies ........... 2,s54,ooo,ooo
hsesian:o SsDan ana chin
Total ........ss4.......... $l5,60l 600 900
American dollars, DR.. winkler is con-
vinced, are at work not only for the
benefit Of the lenders and the borrow
ers, but In the higher cause Of world
peace. "So-called political alliances"
he says, have rarely. IL ever. been Of
much avail unless they were accom-
panied or followed by commercial al
liances. Upon careful analysis 1t will
be discovered that financial and COM
mercial interdependence has done far
more for the maintenance Of peace
among nations than agreement or al
lance, treaty or truce" F. w. w.
(Copyright 1890