pA REPORT ON COOPERATION IN AMERICAN EXPORT TRADE.
shares. Similarly, large investments in other concerns were held
abroad.
In the long run the interest and dividends on foreign-owned bonds
and stocks must be paid by exporting goods.
The foreign investor, moreover, may desire to dispose .of his
holdings to this country. Payments therefor must eventually be
made by means of exports. Competent authorities estimate that in
1915, on account of the war, foreign-held American securities were
sold to the par value of $1,500,000,000, but at the same time Europe
increased its purchases of goods from this country by more than
$1,000,000,000, so that these securities were absorbed without financial
disaster.
It is thus evident that to obtain foreign capital when needed, and
to assume the obligations which this entails without inviting serious
business complications, it is necessary to have an adequate export
trade. It may be pointed out, however, that as this country passes
to the position of a creditor nation, which it bids fair to do, there
will be less and less need of foreign capital for its enterprises.
Foreign services.—In addition to foreign capital for investment
in American enterprises this country also makes extensive use of
foreign services of many kinds. Thus it has relied on foreign shipping
 to convey 90 per cent of its imports and exports, it has depended
 on foreign cables and telegraphs, has utilized foreign banks
in the conduct of its international commerce. As long as the country
depends on foreigners for these services, they must be paid for by
exports, as must the large sums paid by Americans to foreign musiclans,
 artists, scientists, physicians, etc., and the many expenditures
of American tourists abroad. The aggregate cost of these commercial
 and personal serviees is large and in the end must be offset by
the exportation of American goods.
Foreign manufactures.—The United States has been accustomed
to purchase many foreign manufactures, which are used in all parts
of the country. Thus it imports silks from France and Japan,
woolens from Great Britain, fine fabrics and dress goods from
England and France, laces and embroideries from Great Britain,
France, and Switzerland, porcelain and china from England,
carpets and rugs from the Levant, toys from Germany, matches
from Sweden, surgical instruments, drugs, and chemicals from
Germany, and art works from many places. These manufactures
are purchased abroad because it has been found advantageous to
do so. Because of more accessible or better raw materials, superior
climatic conditions, lower costs of production or other reasons there
will always doubtless be many manufactured articles of this nature
which will be imported. In turn it will be desirable for the United