AMERICA FINANCING EUROPE

Hawke's Bay Tribune, Volume XVII, 25 November 1927, Page 4

AMERICA FINANCING EUROPE

JN connection with the foregoing American remarks on Europe’s industrial recovery, it is interesting to note the vast flow of American capital that is almost continually going on in the direction of the Continent, and particularly towards Germany. A Washington message appemlrig in a Boston paper received by this week’s mail says that, while various Senators are raising the question of State Department supervision of foreign loans, Europe is increasing its borrowings from the United States at a maximum rate. American prosperity is financing European rehabilitation, according to Commerce Department statistics just issued. In the first 20 days of October foreign borrowings had already surpassed those of any previous month since the war, with the prosfXct that the total will break all past records, with the probable exception of the wartime outgoing of October, 1916. The largest loans continue to go to Germany which has borrowed a larger total in the first eight months

of 1927 than all the rest i'l Europe put together. Europe’s activity in seeking American money—even with Erance excluded because of its nonagreement to the debt-funding terms —has ended the traditional primacy of Latin-America in the United States financial market. The largest loan for the inoqth will go to the German Central Bank of Agriculture negotiating for the flotation of 50,000,000 dollars (10 million sterling). The Oommerz und Privat Bank of Germany expects a loan of 20,000,000 dollars. At the same time the 30.000,000 dollar loan for the Free State of Prussia has received State Department approval. Similar approval has been extended to the Polish stabilisation loan, of which 47 000.000 dollars out of 72.000.000 dollars has been floated in the United States, and the remainder in Great Britain and Europe.