1st. The purchase by citizens or corporations in the
United States of securities or properties of any
kind (outside of commodities actually shipped,
otherwise accounted for) in other countries;
2nd. The payment of interest or dividends on American
securities and properties owned by foreigners;
3rd. The payment of loans due foreigners;
4th. The payment of passenger and freight rates to
foreigners owning foreign vessels;
5th. Money expended by Americans touring abroad;
6th. Remittances by foreigners in the United States to
their friends or dependants abroad;
7th. Loans by the United States to foreign countries,
which during this war are reaching gigantic
proportions, or loans by U. S. banks or citizens
to foreigners;
8th. Remittances from the United States to pay for
foreign securities marketed in the United States,
which have reached very large proportions during
this war.
In like manner all of these unrecorded factors or any of them may apply
to any of the foreign countries and transfer money or credits to the
United States. For instance:
1st. The purchase by foreign banking corporations or
individuals of American securities or properties;
2nd. The payment of interest or dividends on foreign
securities or properties held by American
capitalists;
3rd. The liquidation of loans negotiated by Europe or
foreign bankers in America;
4th. The payment to Americans of passenger and freight
service on American ships by foreigners;
5th. The money expended in America by foreign persons
traveling in America;
6th. Remittances to persons within the United States
from foreign friends or relatives;
7th. The lending of money to the United States, or
to citizens, bankers, or corporations of the
United States by foreign Governments, bankers, or
citizens who might make loans on American bonds or
American evidences of debt;
8th. The payment for insurance due to American
Insurance companies.
The “balance of trade” relates only to commodity shipments. When a
country ships less commodities than it receives it must make up the
difference by shipping gold, shipping securities, transferring bank
credits, or rendering service, such as insurances, passenger and
freight, wharfage and dockage, or entertaining travelers.