Cuban Investments 



WAR TIME INVESTMENTS 



The investors of the United States, have, 

 within the past two years, loaned to European 

 Governments approximately $2,500,000,000. 

 These loans have been made on the basis of 

 higher rates of interest than governments have 

 ever paid for accommodation in this country. 

 We will assume, for the sake of argument, that 

 when the peace treaty will have been signed, 

 there will be no repudiation of these loans and 

 that the investors holding such securities will 

 continue to receive their interest without question 

 and their principal as it falls due. The great 

 trouble, however, under such conditions, as set 

 forth in the papers by one of the best informed 

 financiers of this country, is that "the conditions 

 apparent at times necessary for borrowing money 

 are not the conditions at the time necessary for 

 repaying the debt." In other words, there is 

 just the possibihty that when the vast amount of 

 Foreign Government obligations come due, these 

 governments will find themselves in a position 

 where they will have to refund these loans in 

 order to protect interest, without hope of re- 

 paying the principal. 



As a result of apparent conditions, the investors 

 of this country have arrived at that stage in 

 investment in European collaterals, where they 

 find themselves unwilling to absorb much more 

 of such securities and must look to other fields 

 for the making profitable of their money holdings. 



