Evening star., 1934-09-18
PEEK URGESU. s.
INVENTORY DEBTS
May Propose Control Over
Movement of Capital to
Other Nations.
BY the Associated Press.

BY the Associated Press.
To avoid throwing good money after
bad, George N. Peek suggested to
President Roosevelt today a strict
inventory" of the billions the world
owes Americans.
Peek, who is special foreign trade
adviser to the President, also indi-
Gated to newspaper men he may
recommend ways to restrict or en-
barge the movement of American
capital to foreign countries consid-
cred poor risks" He declined. how
ever, to commit himself on this, de-
claring the collection of data is the
first task.
Peek advocated a national book
keeping system to audit transactions
with foreign nations and a govern
mental credit-rating agency to check
the financial responsibility Of nations
seeking American money.
Net Debt to U. S., $20,645, 900, 900.
In a letter to the President, Peek
estimated the worlds net debt to the
United States at s20,645, ,000, 900. The
report, packed with statistics, bears
on international credits for foreign
trade and other purposes" It supple
ments a report of May % in which
he found that "our international
trade has been cumulatively disad-
vantageous to us during the past SO
years by reason of the fact that q
large increase in debts owing to us
from abroad had occurred during this
period"
I'VE have no adequate national
bookkeeping system for our foreign
financial relations" Peek informed
the President. I'VE have no adequate
knowledge Of our investments in for
eign countries or of foreigners in
vestments in the United States. An
inventory is necessary for a COM
plete understanding Of our interna-
tional investments.
I'VE are undertaking to develop
balance sheets between this country
and each of the countries with which
we are dealing or with which we pro-
pose to deal Certain information
necessary in preparing these balance
sheets is not now available to the
Government.
"Must Watch Capital Flow"
I'm years past we have gone to great
trouble and expense in recording and
regulating the flow of emigration and
immigration The time has arrived
wnen, as a Nation, we must pay close
attention to the migration Of capital
/ and its relation to foreign trade in
order to avoid such movements as oc-
CURED during the 1923-1933 period"
Peek explained to newspapermen
that during the 1923l933 period this
country made enormous bad invest
ments" abroad and there also was q
flight of capital from the United
States which, he inferred, aggravated
panic conditions.
Nations with favorable balances of
trade with us might be considered as
good risks" for loans, Peek indicated,
while other nations were obviously
questionable risks.
transactions with reciprocal trade
agreements to emphasize trade"
rather than money"
Money Medium of Exchange"
Cali trade is based on mutually ad-
vantageous exchange of goods and
services" he declared. Money is a
medium of exchange, a measure of
value, but not of constant value. 1t
should not be the master of trade. OF
late years we have consciously or un-
consciously discouraged trade itself,
while we have increased the emphasis
on the medium Of exchange"
In series of tables, Peek provided
figures covering the dominant finan-
cial situation during different periods.
American investments in foreign
countries (including war debts) are
estimated to have increased $23, ,702,-
900 900 since 1914 to a total of $25,-
202 ZOO, 900 in 1888, while foreigners
investments here appear to have in
creased $57,000,000 to $4,557, ,000, 900,
leaving the world still owing the
United States a net for SIC, ,645, ,000, ,000