, are lawful in the countries where the
trade is to be carried on, and are necessary if Americans are to meet
competitors there on equal terms?"--New York _Evening Sun_, June 21,
1916.

[10] In the last forty years the balance has been against us in only
three years, 1888, 1889 and 1893. The real balance is not nearly so
great as the apparent balance, but there can be little doubt that it
represents a considerable repayment of the principal of our great debt
to Europe.

[11] According to W. Z. Ripley the American debt to Europe amounted in
1899 to $3,100,000,000 of which $2,500,000,000 was owed to England,
$240,000,000 to Holland, $200,000,000 to Germany, $75,000,000 to
Switzerland, $50,000,000 to France, and $35,000,000 to the rest of
Europe. After 1899 there was a reduction in the amount of European
holdings of American securities (mostly railroad bonds and stocks), but
since 1907 there was again an increased purchase, so that by 1914 the
American debt to Europe was considerably greater than it had been in
1899. See New York _Journal of Commerce_, Dec. 6, 1911. Also, Hobson,
C. K., "The Export of Capital." New York, 1914, p. 153-5. According
to a compilation made by President L. F. Loree of the Delaware and
Hudson Railroad, the American railroad securities formerly held in
foreign hands but which were absorbed by the American market during the
eighteen months ending July 31, 1916, amounted to $1,288,773,801 par
value and to $898,390,910 market value. The railroad securities
remaining abroad (July 31, 1916), amounted to $1,415,628,563 par value
with a market value of $1,110,099,090. In other words according to
these statistics of returned securities (which Mr. Loree believes are
largely underestimated) about 45 per cent. (market value) of the
railroad securities held abroad on January 31, 1915, had been returned
eighteen months later. (New York _Times_, Sept. 25, 1916.) The New
York _Times_ states that "it is high banking opinion that at the
outbreak of the war, the total of industrial securities held abroad
amounted to about 25 per cent. of the railroad securities, and that
the liquidation of industrials since has been in about the same
proportion to the total as the liquidation of rails." On this basis
the foreign holdings of American railroad and industrial securities on
July 31, 1916, would have amounted to only $1,375,000,000 (market
value).

[12] For data used as the basis of this estimate, see Ho