Recent international capital movements 1924-1929

The explanation, of course, is that while it is possible to record the public issues of foreign capital on any particular money market, no more than rough estimates can be made of the direct investment (or borrowing) abroad by means of purchases (or sales) of listed securities in foreign markets, or of the private loans and transfers of capita]. [...] In many cases, of course, the estimated influx of foreign capital is derived from the difference between the two sides of the estimated balance of current international payments. [...] Accurate statistics can only be obtained in respect of the issues publicly floated in the U. S. It is believed that these give an idea of the direction, and the relative importance of the various countries as borrowers; absolute figures cannot be given without eti.t.n' the voli.e and direction of direct and private capital expo rts. [...] The remarkable chance in the volume of caoital movements in 1929, together with the recent revival of the normal flow, is discussed at the end of this memorandum. [...] The low interest rates in Prance in part exempli:fr the abundance of domestic funds, and the favourable balance of international payments indicates the possibilities of forein investment.