American Investments in European Industry

April 1, 1929

Report Outline
The “Dollar Invasion” of Europe
European Safeguards Against Foreign-Control
Foreign Investments in the United States
Special Focus

During the fifteen years that have elapsed since 1913, American investors have supplied nearly five and three quarter billion dollars of capital to Europe through the purchase of foreign securities offered for public subscription in the United States. This sum approximates the highest estimate of the total of European capital invested in the United States at the outbreak of the World War. During the war period American purchases of new European securities were confined exclusively to governmental issues, for it was not until 1919 that the first public offering of European corporate securities was made in the American market. In the last ten years, however, American private investors have subscribed to more than a billion and a quarter dollars of the securities of European corporations.

After the adoption of the Dawes plan, European offerings of corporate securities in the Amercan market showed a large increase. From 1919 to 1924 they averaged only $32,234,750 annually; since 1924 they have averaged $265,607,775 a year. During the period from 1919 to 1924, eighty-five per cent of the capital made available to Europe by American private investors went into government and government-guaranteed obligations, and only about fifteen percent into industrial offerings. Since 1924, government and government-guaranteed issues have represented about fifty-five per cent, and corporate issues about forty-five per cent, of the total European financing in the American market.1

The distribution by industries of the European corporate securities floated in the United States during the last ten years is shown in the following table:

ISSUE TRACKER for Related Reports
American Investment Abroad
Jan. 26, 1968  American Investments in European Industry
Jul. 11, 1962  Protection of Investments in Backward Countries
Feb. 21, 1962  Foreign Competition for American Producers
Jun. 24, 1959  American Manufacturing in Foreign Countries
Feb. 25, 1953  American Private Investment Abroad
May 11, 1949  Government Guaranties for Foreign Investments
Apr. 26, 1932  American Manufacturing in Foreign Countries
Feb. 03, 1932  Defaulted Foreign Bonds
May 14, 1931  Protection of American Lives and Property Abroad
Apr. 01, 1929  American Investments in European Industry
May 17, 1926  American Investments in the Western Hemisphere
May 14, 1925  American Investments in Foreign Countries 1919–1924
Investment and the Stock Market
Regional Political Affairs: Europe