Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-08-10
WOLL RAPS USING
U. S. CASH ABROAD
Foreign investment Policy
MenaceS American Masses,
Labor Head Says.
BY the Associated Press.


WILLIAMSBURG, Mass, August 10.
Matthew Vol, vice president of the
American Federation of Labor, ad-
dressing the Trade Relations Confer
ence of the Institute of Politics today,
said that the United States had reached
period where 1t must view "our de-
veloping foreign investment policy as
involving q menace to the wellbeing
Of our masses and the security OF our
national future"
Pointing out that between $500 ,000,-
600 and $400, OO0. 900 of American
money is at present invested in stocks
and bonds Of manufacturing companies
in Europe and that approximately
$500 ,000, 900 is invested in American
branch plants on that continent, Mr..
VOL declared. We have come to
sharp turn in the road. We face a new
problem"
Investments, Not Loans.
"This new movement of money is not
a loan" he said. 1T Is an investment
of American money in manufacturing
plants owned by Americans in foreign
countries. In those plants are made
commodities that might be called
American commodities, since nearly all
of them originally we're made in this
country: most of them are patented
here and they find their best market
here.
But in every case the wage pay roll
stays in the foreign country. The power
used is developed and paid for in a
foreign country. The property tax is
paid to another country and raw ma
terials. at least in part. are bought and
paid for in another country
Finally the commodities are largely
shipped back to the United States to be
sold here In q market that has been
bereft Of the wages paid in manufacture
and bereft Of hundred other BENEFITS
Of manufacture. in a market that ex-
tends its governmental protection to the
commodities in the form of patents and
trade mark protection.
1T will be said that the profits from
these ventures come back to Americans
but these profits. If and when there are
profits, return to the stock and bond
holders and not to the masses of the
people.
Prosperity" Problems.
"In spite of all our Wanted prosperity,
we have the problem of increasing un-
employment and underemploymenr
Until this problem is solved, the GUS
todianS of the national savings, whether
they be bankers or industrialiSts. have
no moral right to employ the invested
funds in their hands outside of this
country on mere promises of higher
financial returns. BY such a process
individuals may get back their invested
capital. but the country never will re-
cover its lost opportunities.
Nor Is that ALL Our official diplo-
macy has built up the theory that
American interests are to be protected
by the American Government wherever
they may be.
American factories are operating in
a dozen countries where they may be
menaced by violent attack. am trying
to see the possibilities, not as an
alarmist, but as something of a realist.
Just this sort of thing has involved us
In more than one military operation
and we have no reason to believe we
have seen the end of such operations.
Within the next flve years We may
easily enough see our troops going to
the ends Of the earth to protect fac
tories that have gone to the ends Of the
earth seeking easier fields for the
| exploitation of workers"
Cites Ford's Irish Factory.
Citing the manufacture Of Ford
tractors in Ireland as an outstanding
example Of investment abroad Mr.. VOL
said that electrical appliances, break
fast foods. machine parts, women's
| clothing, shoes and rubber goods were
also manufactured in large quantities
| by American plants in foreign fields.
II am among those who believe the
world has not yet reached the millen-
| num-" he concluded. But as see it,
we are about to enter upon q period Of
international competition that will
overshadow anything Of the kind the
world ever has known"