Evening star., 1930-06-27
FLOW OF CAPITAL
ABROAD ANALYzED
Increase in U. S. Investments
Shown Over Seven
Year Period.
BY CHARLES +. SPEARE.
speclal pispatch to The star.


NEW YORK, June 27-With Ameri-
can bankers lately concerned over so
many problems of an immediate char
acter, less than ordinary attention has
been given TO the analysis of the in
ternational payments by the United
States made by the Department of
Commerce and recognized as one of the
most important annual contributions to
financial records made in this country.
This study has been going on for
about 10 years. Each year it gains in
throughout the world. The attempt
made in it is to explain the movements
of foreign capital and of foreign eX-
change and to establish a net balance
between the visible and invisible items
that figure on the credit side of the
American balance sheet and those rep
resenting debts. Obviously. exact con-
clusions cannot be arrived at, since
many of the statistics only approximate
actual movements.
Movement Of Funds.
Through the cooperation of interna-
tional bankers a very clear picture,
however, can be given of what takes
place from year to year in the pur-
chase and sale of securities, the pay
ments of interest, the size Of foreign
bank balances in the United States,
the amounts spent by American tour
lists in Europe and in Canada and by
tourists from other parts of the world
in this country, the remittances of
aliens to their home land and the items
OF ocean freightS, gold exports and i'm
ports and war debt receipts
The most popular features of the re-
port are those dealing with the yearly
net increases in American long-term in
vestments abroad, tourist expenditures
and immigrant remittances.
Between 1928 and 1923, the net IN
crease in American long-term invest
mentS abroad was from $258, 600, 900 in
the earlier year to 81 1,318, 900, 900 in
1928. In 1929 the amount dropped to
$808 100000. For the Seven-year period
covered, the total net increase in these
investments was $4,000, 100000. In q
similar term Of years the interest on
American private funds abroad rose
from slightly under 5000, 100000 to
foreign funds in the United States IN
the same period Increased from $780,
600 900 in 1923 to $414,000,0 900 in 1929
In both 1928 and last year this item was
rapidly expanded under the influence of
the high call money rates In this coun-
try, which attracted short-term funds
from all over the world and raised the
aggregate of such funds to the largest
figure ever known.
Seven years ago the so-called tourist
expenditures by Americans overseas
were $4,000 900. In 1929 they were
$517 100000. For the Seven-year period,
they aggregated more than $3,000,0 ,000,-
600 and have played prominent part
in re-eStabliShing credit conditions In
France, Germany and Italy It is
doubtful If they will be as high this
year as in 1929, inasmuch as the num-
Der of flrst-claSS passengers on outgoing
steamers has decreased owing to the
Wall Street conditions and general bus
mess affairs.
Tourist Expenditures.
Between 1923 and the end of 1929,
American tourist expenditures in Cam
ada and Mexico, mainly the former
country, increased from $3l 900 900 to
they aggregated 81 500 600, 900, bring
penditures for the 1923-29 term of
years about $4,500,000, 900
In that same period, immigrant re-
mittances held almost constant from
year to year, aggregating for the seven
years $l;S00, 100000 a sum which, like
that for tourist expenditures, helped Eu-
ropean countries to get back on their
feet. Against the item of tourist ex-
penditures was the offset of expendi-
lures by foreign tourists in the United
States, which increased from $104000,-
900 in 1928 to $3.50, 600 900 in 1929 and
totaled about $1,000, 100000 for the
seven years
tcopyrisht. 1ssO)