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Hokitika Guardian, 30 January 1928, Page 2

Tun Americans arc proverbially good business men, and their Government has justs given them a very useful lead m the direction of more ‘big business." For the past three years there lias been in force “a prohibition against the flotation of French securities in America." This is, in effect, a punishment inflicted upon France for failing to fund its war debt to the 1 nited States. There need he no comment, upon the ethical side of the question just now. hut it is interesting 1,, observe that this prohibition lias now been removed. The official statement is that ‘‘this action was taken independently by the i'liitoll Slides, as an earliest indication of America's friendship for France.’’ Oiie wonders why these demonstrations of friendship” iii relation to France's war debt have been so long delayed. However, remarks an exchange, the Amer-

icans are acting promptly on ibis decision, ilie Treasury having iniimaled Hint France will lie given credit at the 'Federal Reserve Rani;, and may even float a Government loan if sit - likes. It may help lo explain Hu* new-found generosity if we reflect upon a statement just issued by the American Department of Commerce to the effect that, exclusive of all war debts'.

American investments abroad by the end ul 11)27 reached .the sum of £2,600,000,000. This great total maygive some idea of the huge sources o! revenue now open to the Americans. Following Britain's lead, they are rapidly becoming the creditors of the rest of the world, and they are cleaving an immense income from their investments yearly in the iorm of imports to balance these “invisible ex ports.'' Of course, as Britain inis •earned, this is aii extremely operative wav to do business. And just because the French arc* among the soundest and the most reliable borrowers In the world, therefore the Americans have realised, though a little late in the day, that. tlieii *‘friendship" fof Friihce may he turned to a very profitable purpose.