Table 34. Estimated United States Holdings of Foreign Dollar Bonds, December 31, 1939-Continued

Table 35.-Interest-Default Status of Foreign Dollar Bonds, by Countries, Decem

1 By interest default is meant the failure of the borrower to pay interest in conformity with the provisions of the bond indenture-the gold clause excepted. Negotiations often result in the lowering of the contract rate of interest, the cancelation of past-due coupons, the issuance of income bonds in exchange for the orig inal bonds, or some other solution thought of as permanent. When such revisions are accepted by the bondholders and adhered to by the debtors, the contracts are considered as having been amended and the issues are treated as no longer in default. For the purposes of the above table, interest default was based on the status of the last coupon payable in 1939. Certain Mexican, Russian, and Chinese issues long in complete default as to both principal and interest are excluded from these estimates. Issues were considered to be in partial default if current coupons were being serviced with scrip, with funding bonds, or with cash payments at less than the contract rate of interest. (See footnote to table II.) Issues considered in complete default include those on which no interest payments were made in those upon which interest was paid for other than by current coupons, and those which were serviced only to the extent of the deposit of restricted foreign currencies in the debtor countries.

any

form.

Table 35.-Interest-Default Status of Foreign Dollar Bonds, by Countries, December 31, 1939-Continued

Table 36.-Market Value of Foreign Dollar Bonds, December 31, 1939

II. SHORT-TERM FOREIGN LIABILITIES AND ASSETS

Table 37.-Outstanding Short-Term Foreign Liabilities and Assets of the United States, January 1, 1936, to December 27, 1939 1

1 Based on Statistics of Capital Movements Between the United States and Foreign Countries, Report No. 1, pp. 19-53, Report No. 2. pp. 27-44, and Report No. 6, pp. 19-30, and partment, March 1939, pp. 37, 38, and 40, and March 1940, pp. 38, 39, and 41. to include certain deposit accounts of the Philippine Government with the 2 Negligible.

Bulletin of the Treasury De These data have been revised United States Treasury.

3 The difference between the 1938 and 1939 year-end totals does not conform with the capital movement data in table VI because a change in the reporting practice of a banking institution increased both assets and liabilities but did not represent a capital movement.

III. GERMAN STANDSTILL CREDITS

Table 38.-German Standstill. Credits,1 December 31, 1938, and March 30, 1940

Date of effective agreement.
Date of expiration of agreement..
Total credit lines outstanding.

United States share.

Item

Total credits outstanding (availments).
United States share..

1 Conversions made at 40 cents per mark.

2 The agreement in force at the opening of the war was concluded in May 1939, effective from June 1, 1939, to May 31, 1940. After the war opened, that agreement was canceled. New agreements were signed be tween Germany and nonbelligerents of the German Government on December 9, 1939. covering another year was signed late in May 1940.

An agreement

IV. FOREIGN DIRECT INVESTMENTS IN THE UNITED STATES

At the end of 1937, foreign companies and individuals domiciled abroad controlled a total of 1,172 companies and branches located in the United States. The total investment interest of the foreign owners of these companies and branches amounted to $1,882,603,000, as shown in tables 39 to 41. A more detailed discussion of these investments, including pertinent data relating to their position in production in the United States, was given in a report presented to the Temporary National Economic Committee.

Table 39.-Foreign Direct Investments in the United States, by Industries, 1937 [In thousands of dollars]

Table 40.-Foreign Direct Investments in the United States, by Countries, 1937

Table 40.-Foreign Direct Investments in the United States, by Countries, 1937— Continued

Table 41.-Foreign Direct Investments in the United States, by Principal Countries

' Including $102,000 for Newfoundland ($2,000 in "Mining" and $100,000 in "Miscellaneous”).

V. FOREIGN HOLDINGS OF COMMON AND PREFERRED SHARES 1?

The estimates of foreign holdings of United States corporate shares presented annually in this bulletin have been based on reports received from domestic corporations.

Those reports, sufficiently numerous to warrant their publications as indexes of the annual trend of these holdings, have been received since 1934. Through 1936 they were published as part of a comprehensive survey of foreign investments in the United States.13 Since that time the number of companies reporting the

12 Prepared by Milton Abelson of the Finance Division.

13 United States Department of Commerce, Bureau of Foreign and Domestic Commerce, Foreign Investments in the United States. U. S. Government Printing Office, 1937, 109 pp. Price, 15 cents.