The Wilmington morning star. [volume] (Wilmington, N.C.) 1909-1990, 1944-06-02
By ROGER w. BABSON

r. a
With Lend Lease commitments
approaching in value S25,000,ooo-
600, it would seem that our flnan-
cial backing of our Allies in terms
of war materials, food and prob
ably in an undisclosed amount OF
sold is nearing maximum. Re-
verse 1etld-lease will provide
small credit against the final sum.
The export of ornaments may de-
cline from here on; but shipments
of food, clothing, building materl-
ais and other items for civilian re-
Mobilization will increase as more
territory comes under Allied gov
eminent.
Already plans are being formu-
lated for the disposition abroad.
after the war, of surplus U. S.
motor equipment. Similar p ! II $
will be devised for the gift or sale
of other war equipment adapted to
civilian use. As in the case ut
France after World War I. majors
allied with the U. S. A. in World
War II, as well as the smaller
countries first to feel Hitler's
blows, will profit greatly from our
governments generosity.
I believe we are safe in assum-
ing that U. S. Foreign Relief after
the war in terms Of adaptable or
reconverted war materials, in food,
clothing, Red Cross aid and gov
eminent grants, in cash plus loans
and credits will reach additional
astronomical billions. It may total
as much as Lend-Lease does to-
day. Furthermore. as the U. S.
will perhaps be the only Allied ra-
ton untouched by t h physical
damage and misery of the war.
we will rightly be expected to bear
the major part of the overseas
postwar repair bill.
The first stage of relief will be
the feeding and sheltering of the
homeless and starving people of
Continental Europe. Both present
friends and foes may be included
in this group. This, however, is
quite different from making cap
ital investments abroad. Perhaps
some yes%s after the war, when
the necessities of rebuilding the en-
tire worlds economic structure be-
come more clearly defined, U. S.
investors may have part to PLAY.
However, in the Immediate post
war period our help should consti-
tute outright gifts Or sa1e~ of ma
terlals at cost. The investment of
capital should for the present be
avoided
Capital Investment? II
In the course of a lifetime of
supervising investing, I have, at /
one time or another, seen my eli
ents own all kinds of foreign Sc
curities These have consisted
principally of governments, mu-
nicipals and utility bonds. I have
also seen them own foreign rail-
road and mining stocks. They have
ranged far afield to Germany, Rus
STA, Japan, Mexico. and the Latin
countries. As look
back over these experiences, RI
doubt if they ever netted dime
out OF their foreign holdings. Hence
have concluded it is far better
o have readers funds invested in
his country where at least the in
7estor can visit the physical prop
rites and get acquainted with the
and-in case of trou-
lie - have the benefit of U, S.
ourts.
Air transportation, the acquaint-
nee of millions OF service men
nd women with foreign customs
nd places. inter marriages and
ne handing out of millions of U.
!. consumer products will tend to
reak down the barriers of ract.
anguage and religion. But for
many years I am afraid that Uncle
am may be looked upon as q
anita Claus or as senile old
IAN who foolishly risks his money
broad but who will be too proud
too feeble to insist upon an ade-
uate return for his support.
Our government and our people
lould not become hipped on the
lea that we should become the
1tstanding leaders in world af-
airs. Destiny has called us to
-ay a decisive part in World War
), but we should not consider it
5 a permanent job. Washington
as had a lot of New Deal ex-
erience with out-and-out relief;
ut Washington knows n o h ny
bout the investment of capital.
UGH foreign investments should