The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1936-11-27
TWO BILLIONS
FOREIGN GOLD
SPED T0U. 5.
BY ERIC FRIEDHEIM

EuTOpGdu PO41IlSdA I'LL N0O "AAA
the desire of foreigners to profit
from the American recovery
movement caused more than two
and a quarter billion dollars to
flow to the United States from
abroad between January. 1885,
and September, 1895, Treasury
studies disclosed today.
Coincident with reports that
several nations were preparing to
renew war debt negotiations, the
Treasury revealed that the net
capital movement Of funds to this
country during the period totalled
$2,281 $4,000, representing ST.
353,072, 900 in short term banking
funds, $905 100000 in security
transactions and $23, $4,000 in
brokerage balances.
The volume of foreign invest
ment in the United States, which
amounted to $6,235, 100000 at the
end of last year, is expected to
soar to a record peak Of $780,
100000 by the close of 1885 if the
present trend continues.
During the 81 months surveyed
by the Treasury, Europe poured
$1,774,568,000 into the United
States. Of this amount, $780,
100000 came from the United
Kingdom; $2O1, 100000 from
France; $73,000,000 from Ger
many; $28,OO0,O00 from Italy;
$194, 100000 from The Neither
lands; 1927 100000 from Switzer-
land, and $197 100000 from other
European powers.
The net capital movement from
Canada during this period aggre-
gated $4,000, 900; Latin-America,
$3.50, 100000; the Far East, $685.
100000 and all others $13,OOO,OOO.
Officials characterized the
Treasury's findings as a potent
argument against further con-
cessions to any of the debt-default-
ing nations. Foreign holdings now
equal more than half the $4,000
100000 debt owed the United
States.
Foreigners were particularly &C
tive in the purchase and sale OF
securities in the American market.
The report showed that foreign
buying of stocks and bonds in
this country amounted to $4,354,-
100000. Against this, foreigners
sold $3,449, 100000 of their hold
ings.
President Claimed
President Roosevelt recently eX
pressed alarm over foreign stock
transactions, viewing these opera
lions as a possible threat to
American financial stability.
The united kingdom registered
the greatest activity of any for
eign nation in the American Secur-
tiles market. During the 81
months she bought $1,396, 600, 900
in stocks and sold $1,054, 200, 900;
France purchased $355,000,000
and sold $295, 100000; purchases
and sales reported for other coun-
tries included: Germany, $34, =
900 and $20,000,000; Italy, $751;
100000 and $14,000,000; Holland,
1886, 100000 and 1855, 600, 900;
Switzerland, $429,OO0,00O an d
$275, 1000, 900; other Europe, $276,-
5000 and $191 900 900; Canada.
$1,148, 900, 900 and $1,122, 600, 900;
Latin-America, $124,0OO,O00 and
$86, 900; Far East, $751; 600, 900
and $113,000,000; all others, $685.
100000 and $18,000,000.
While the Treasury released its
report without comment, the Com
merce Department in recent sur
vey stated that heavy purchases Of
American securities by foreign in
vestorS is accounted for partly by
the improvement of business con-
ditions here and partly by periodic
unsettlement abroad. The Depart
ment said:
"AlthOugh the improvement
in both domestic and foreign
trade has provided a stimulant
to the growth of foreign work
ing balances in the United
States, the continued inflow of
Short-term funds was also in
fluenced at various times by the
fears growing out of the finan.
cial-pOlitical situation in other
countries"
Some causes cited by the de-
partment for heavy capital move
ments to this country in 1885 were
the Italian Ethiopian war, devalu-
alton of the Belgian belga, and
political upheavals in France and