American Investments in Foreign Countries 1919–1924

Report Outline
Pre-War and Post-War Investments
Tendencies in Foreign Investments 1919–1924
Purposes of American Foreign Loans
Corporate Securities Offered in U.S. in 1924
Special Focus

The officially expressed attitude of the United States Government on the flotation of foreign loans in America is set forth in a statement issued by the State Department on March 3, 1922. In that statement it was announced that a conference had been held in the summer of 1921 between the President, certain members of the Cabinet and a number of American investment bankers, at which the Government expressed a desire to be adequately informed of all transactions in foreign loans before their consummation in order that it might express itself regarding them if that should be requested or seem desirable.

Extent of State Department Supervision

Although investment bankers generally expressed their agreement with the principle laid down in the Harding conference, the State Department announcement of May 3, 1922 stated that the desirability of such cooperation as had been agreed upon did not seem sufficiently well understood in banking and investment circles, and the bankers were again urged to consult the Department on foreign investments.

The statement of March 3, 1922 concluded with the following paragraph: