Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-09-10
25 BILLION i. S.
CAPITAL ABROAD
Largest Amount Invested in
Europe-War Debt Figured
at s7,74o,o0o, 900.

approximately $24,865, $4,000 in fer
eign investment on January /, last, &C
cording to a report made public today
by the Commerce Department.
Embodied in the report is study
completed by Paul D. Dickens OF the
depa. .ment's Bureau of Foreign and
Domestic Commerce. In the study, 1t
was pointed cut, are presented for the
first time estimates of total invest
ments for individual foreign countries.
The department estimated American
private long-term investments were be-
ezssr S14.900, 100000 and $15,400,000,-
600; war loans amounting to $7,740,000,-
600, and S1,725,759,000 in short-term
credits.
The principal of the war debt out
standing on November 10, 1880, the de-
partment said, was ll,640, 100000, but
the actual worth Of this debt was fixed
by Mr. Dickens study at $7,740, 600, 600
on a 4 per cent compound discount
basis. This also was emphasized by
Grosvenor NJ Jones, chief Of the divi-
sion of finance and investment, who
said that the seven billion dollar figure
should be taken as the actual value Of
the debt.
Big Gain in IL Years.
In citing the total figures in private
long-term investments, the study said,
their rapid growth is brought out
clearly when the present total, $l4,900,-
600, 900 to SIS 400 900, 900, is compared
with the estimates of investments in
1900 of $500, 100000 and in 1912 OF
sl,e02, 10000 In the last ID years this
country has increased its holdings
tu
S737, 100000 year, excluding, OF
course, the war debts to the United
States Treasury and short-term invest
ments."
The largest amount of American
capital is invested in Europe, about
s4,50o, 900, 900, the study said, and
Canada is second and South America
third with approximately $3.50 09,-
600 and s304o, 000,o 600, respectively
Mexico and Central America, s96s, $40
goo; South America, S3,o4l, 926, 600;
west Indies, Sl,233,484,00o; Africa,
s1l7.829, 900: Asia, s1,o22, $4,000, and
Oceania, S4l9,294,0o0. o
This gave a total of S15,675, 028,o00,
from which was deducted $3.50. OO0,0 Oo
for repatriation of securities by for
eign buyers in 1880 and Sl25,0OO,O0O
added for insurance company and BANK
capital invested in foreign countries,
leaving a total of $15.170, 028,00O.
Private investments were about
equally divided between bonds and
direct investments in industries. d.
rect investments were estimated to total
S7,e40,810000 and investments IN
bonds were set at S7,204 2l9,0OO.
American investments IN CANADA
were the largest in any single country
and exceeded those in every continent
except Europe, according TO the study.
The ownership Of branch plants, mines,
nlblic utilities and other similar prop
critics, the study said, exceeds port
folio investments, as is TO be expected
in a relatively new country WIN great
natural resources that are near enough
to exert a constant and strong attrac-
tion to business men in the United
States. 1t is remarkable, nevertheless,
that the total private corporate m
yestments, direct and portfolio, are over
twice as large as the holdings OF gov
ernment-guaranteed corporate 6ecurl-
ties"
largest individual source of American
investments. longtime holdings OF
Americans there we're estimated at ST.
100000 at the end of 1880. OF this
sum, s1.176 $4,000 is in German
bonds of various kinds, largely govern
ment-guaranteed securities.
Germany" the study said, has been
American long-term capital than any
other European country. APPROX,
metely 100 separate stock and bond
issues, of which the American share
outstanding totals Sl17700o 600, con-
stitute the largest part of the Ameri-
can investment in Germany.
practically all of this tremendous
sum may be considered as dating from
october, 1924, when the $4,000 600
American share Of the Dawes plan loan
for the government Of the German
Republic was offered in this country.
During the four years beginning with
1925, over $l000,000,000 of German
bonds we're foated here. There prob
ably has never before been so large a
movement of long-term capital between
two countries in such short time"
S1,O66, 900 in Cuba.
Cuba came third In rank as a
source of American investments, with
S1,066 ,55l 900. Most of this was in
the shipping industry Total direct
cuban bonds held total $3.50. 900.
American private investments IN
Great Britain total $64O,892, 900;
France, SAT-, 344, 900; Italy, $4O1, 140,-
O00 Belgium, 1884 900; Sweden,
s272 1885, 900; Mexico. 1894, 900;
Argentina, S8O7,77 900; Chile, $780,
$4,000; Brazil, 1851, ool 900; Colombia,
1901 $4,000: Venezuela. $247 ,238 900;
Peru, s2Oo,o85,ooo: Bolivia: s116,o4S,--
900; Japan, $444, $4,000; Dutch East
Indies, S201 1913 900; Philippine Islands,
$166,245,o00, and China, 1929, 100000.
The department. along with the
study, submitted a brief general obser-
walton on the trend of 1880 direct in
Vestments, as follows:
First, there was noticeable falling
of in Latin American investments.
During several of the Immediately pre-
ceding years American public utility
companies had rapidly extended their
holdings of electric and telephone util-
ity properties in that area. During
1880 there was less activity in that line,
and it is possible that for several years
any expansion in our public utility in
vestments in Latin America will take
the form chiefly of consolidating and
improving properties previously &C
quired.
Electric Utilities Acquired.
"Second, in 1880 American capitalists,
associated with Europeans, acquired
electric utilities and established sub
salaries in several European countries,
among which were Germany, Greece,
Luxembourg, Portugal, Turkey and Yu-
goslavia Earlier American investments
in European public utilities were large
ly confined to the purchase of bonds.
A few exceptions to this were the
acquisition of electrical properties in
England, of interests in various hydro
electric enterprises in Italy, and OF
telephone systems. principally in Spain.
Third, the chief activity in manu-
featuring expansion in 1880 was in
Europe, especially in Germany. Much
of this expansion took the form of par
ticipation in established companies. al
though outright purchases, the estab-
lishment Of new plants, and extensions
10 old Investments took Mace also New