Evening star., 1941-01-05
BY OLIVER MCKEE.

BY OLIVER MCKEE.
During the first year of the Euro
pean war the value Of foreign owned
assets in the United States increased
approximately $500, 900 900, the Com
merce Department announced yes
terday.
Foreogn investments at the end
of August, 1910, totaled SO, ,563 900 900
as compared with $9,O64 100000 in
August, 1889. Foreign investments
totaled only s5,622 900, 900 in 1884,
according 10 estimates prepared by
Paul D. Dickens and Milton Abel
son of the departments finance di-
vision.
Two facts standout In the years
movements. One was the flight of
capital to the United States from
European neutralS. The other was
the shipment of gold to this country
by Great Britain and France, to pro-
tect as far as possible their holdings
OF American securities.
The flight of alien capital to this
country was a principal factor in
the rise of foreign-owned dollar bal
ances and other short-term hold
ings from S2953 100000 to $685.
000,000 despite a net withdrawal
during this period of almost 5000
100000 in British-owned cash hold
lngs. British liquidation of Amer
lean common stocks contributed to
tho InPlina nf ln,oO
he'd by foreigners from s6,1l1 900 900
to S5927 100000.
Quarter Held by Britain.
At the end of August. 1910. for
elgn holdings were distributed as
follows: Stocks and bonds, s3l89,-
900 00U; foreign-oWned dollar bal
ances, 1886 100000, and direct in
vestments and miscellaneous hold
ings, S2,738, 100000.
With an estimated total of 81
SCI 100000, the United Kingdom ac-
counted for more than a quarter of
foreign holdings in this country at
the end of the first year of the
European war Of the British as
sets. 1915 100000 were represented
by short term. and S2.186,O 900 900 by
long term investments. Canadian
investments had an estimated value
of 81 1893 100000
Holdings of European countries.
other than the United Kingdom,
were as follows: Belgium. s2S9.-
100000; France. s846 900 900: Ger
many. s1l300O,00O; Italy. ss2,OOO.-
600; the Netherlands. s105O.OOO.- =
600. and Switzerland. S1.204 900 900
American investments held by other
European countries aggregated s66l.-
100000 Latin American holdings
amounted to s548, 900 900, and those
of the rest Of the world s706 100000.
Small Volume of Liquidation.
Canadian and United Kingdom
investments, comprising about 95 per
cent of total British Empire holdings
in the United States. stood at ST.
1893 100000 and $2561 ,000, 900 respec-
lively, at the end of August. 1940
as compared with ST .399 100000 and
50 972 100000 year earlier" the re-
port pointed OUT.
In relation to reported large scale
Empire purchases of domestic COM
modities during the first year of the
war this reflected a relatively small
volume of net liquidation Although
net merchandise exports to Canada
and the United Kingdom amounted
to S875 900 900, these countries drew
on their combined dollar investments
only to the extent of sl86 100000 of
dollar balances, and sl93 100000 of
United States securities respectively.
The balance, plus the advance pay
mentS for merchandise and the
capital outlays connected Herewith,
was paid principally out of the pro-
ceeds of gold shipments to the United
States
Long-term investments of Great
Britain and Canada declined only
slS4 ,OOOO 900 and s47,OOO,OOO, respec-
lively, during the first year of the
war. These declines resulted pri-
marily from sales of domestic Sc
curitieS.
OcTHdH lHNcStTncntS SHdI.
German investments in the United
States are comparatively small, and
showed little change during the first
year of the war. Imports of gold
from Germany during this period
amounted to only 10000 Gold i'm
ports from Italy, which totaled $780,
100000, were made before her en-
trance into the war. Imports of gold
from countries invaded by Germany
virtually ceased after their occupa-
ton by the Nazis.
At the end of August. 1910, French
investments in this country aggre-
gated s846, 100000. These were made
up of $525, ZOO, 900 in dollar balances,
$3.50, 100000 in stocks and bonds, and