Evening star., 1934-08-19

suficient confidence in them 10 buy.
In 1919 foreign lending to Americans
amounted to 3l.2o1, ,Tl2, 900. That
preston. The following year. when
the American stock market was
crumbling to pieces and stock quo
tations were cascading downhill,
foreign lending amounted TO 1885,
22S.00o. As every one dismally re-
members, things got worse instead Of
better, but foreigners did not lose
confidence. In 1891 foreign lendinEs
amounted to 32,o0l, ,SsI. 900. In 1881
this figure rose to t2,31e, 500, 900 and
last year the amount climbed up to
sass, 81, 900.
This is what happened: Foreigners
had more confidence in American Sc
curtties than many Americans and
while, In their panic, Americans had
beaten prices down on the stock ex-
changes to bargain levels, the foreign
ers bought up the securities. It
meant lending to America, Of course,
but lending on what obviously the
foreigners regarded as good security.
II has been reported by bankers and
/ - S@~A1 eAA@t ONCI CQQHlQCIAOlG
period, In the very midst Of the stock
market panic. when the bears were
unloading securities right and left,
orders to purchase for foreign account
day after day exceeded orders to sell
for foreign account.
Defaults on Both Sides
Chief foreign creditors of Americans
are the Canadians. They have lent
US $1,074, sos, 900 as Of 1888. Great
Britain ranks next, Americans owing
British citizens $386,e7s, 900. Then
comes Holland, which has lent t143,-
| $4,000. Latin American countries
are grouped together for statistical
purposes and 1t is shown that Amer
leans owe Latin Americans 4I35 5,l76,-
600. France stands next as q creditor
OF the American people with an item
OF 106,957 900. One has learned TO
think Of Germany as q chronic bor-
rover and deep debtor. But even
Germany has another side TO its
ledger and we find that German citi-
zens have lent Americans 30,440 900.
Other European countries-Spain,
Italy, the Scandinavian states, and 50
on-show debts due from Americans
aggregating $137,345, 900 and the rest
Of the world runs up total Of sS22,.
999, 900.
| Every group shows substantial In
crease in lendings to Americans right
through the depressed period since
1929. Some Of the countries have
been especially keen about the Amer
ican bargains. The canny Dutch, for
instance. have increased their lend
ings to Americans from 47,271 900 in
1929 to $l43,912, 900 in 1888. That Is,
they trebled their lendings In the
very period when Americans were
striving to get out from under.
The types Of loans made, that ID,
the sort Of enterprises to which these
foreign loans were made through pur.
chase Of bonds or shares are an indica-
tion, presumably, Of foreign financial
judgment during this period. Amer
ican utilities such as light, power and
traction companies and American in
I dustrial concerns such as manufactur-
ing corporations were much the favor
ties over the railroads.
The point Of outstanding interest Is
that while there Is q great deal Of
grousing heard about European and
other foreign debtors, undoubtedly, II
one were In the right place, he would
hear Just about as much complaint
of Americans and their debt defaults.
No one In the world Is free Of debt.
The way Of the debtor d not . one
! way street.