64 International Organization TABLE 1.Indicators of the importance of U.S.foreign investment, 1900-1939 (in millions of dollars and percent) 1900 1912 1922 1929 1933 1939 1.U.S.foreign 751 2,476 5,050 7,850 7,000 6,750 direct investment 2.Domestic corporate and 37,275 75,100 131,904 150,326 109,375 119,324 agricultural wealtha 3.Row 1 as a percent 2.0% 3.3% 3.8% 5.2% 6.4% 5.7% of Row 2 4.U.S.foreign 159 623 4,000 7,375 5,048 2,6005 bondholdingsb 5.U.S.holdings of 5,151 14,524 23,687 38,099 37,748 32,502 non-government bondse 6.4/5,percent 3.1% 4.3% 16.9% 19.4% 13.4% 8.0% a.Net reproducible tangible wealth of U.S.corporations and agriculture. b.Due to the different sources used,figures here conflict with those in Table 4:those of Table 4 are probably more reliable,but to ensure comparability Goldsmith's figures are used throughout the table. c.Excludes only holdings of securities issued by U.S.federal,state,or local governments. d.Includes stocks(for 1900 only). e.Author's estimates. f.Figures are for 1934,from Foreign Bondholders Protective Council,Annual Report for 1934 (Washington,D.C.:FBPC,1935),p.224.This includes only bonds being serviced;a more reasonable measure would include the market value of bonds in default.If this av- eraged 30%of par value,figures for 1933-34 would be $5,954 million and 15.8%for rows 4 and 6,respectively. g.Figures for 1939 holdings of foreign bonds are from Goldsmith and are probably under- stated. Sources.Foreign investment:Raymond Goldsmith,A Study of Saving in the United States, vol.1 (Princeton,N.J.:Princeton University Press,1955),p.1093. Domestic data:Raymond Goldsmith,Robert Lipsey,and Morris Mendelson,Studies in the National Balance Sheet of the United States,vol.2 (Princeton,N.J.:Princeton University Press,.1963),pp.72-83. economy.Tables 2 and 3 illustrate that,while overseas investment was extremely important for the financial community and some industrial sec- tors,most other sectors'foreign assets were insignificant.American foreign investments in mining and petroleum were considerable,both absolutely and relative to capital invested in corresponding activities within the United States.Foreign investment was also of great relative importance to corpora- tions in machinery and equipment (especially electrical appliances),motor vehicles,rubber products,and chemicals.Yet these sectors,which ac- counted for well over half of all overseas investment in manufacturing,repre- sented barely one-fifth of the country's manufacturing plant;far more American industries were quite uninvolved in overseas productionl Although only a few industries had major foreign operations,foreign lend- ing was a favorite activity on Wall Street.As Table 3 shows,between 1919 and 1929 new foreign capital issues in New York averaged over a billion64 International Organization TABLE 1. Indicators of the importance of U.S.foreign investment, 1900-1939 (in millions of dollars and percent) 1. U.S. foreign direct investment 751 2,476 5,050 7,850 7,000' 6,750 2. Domestic corporate and agricultural wealtha 37,275 75,100 131,904 150,326 109,375 119,324 3. Row 1 as a percent of Row 2 2.0% 3.3% 3.8% 5.2% 6.4% 5.7% 4. U.S. foreign bondholdingsb 159d 623 4,000 7,375 5,048' 2,600g 5. U.S. holdings of non-government bondsc 5,151 14,524 23,687 38,099 37,748 32,502 6. 415, percent 3.1% 4.3% 16.9% 19.4% 13.4% 8.0% a. Net reproducible tangible wealth of U.S. corporations and agriculture. b. Due to the different sources used, figures here conflict with those in Table 4; those of Table 4 are probably more reliable, but to ensure comparability Goldsmith's figures are used throughout the table. c. Excludes only holdings of securities issued by U.S. federal, state, or local governments. d. Includes stocks (for 1900 only). e. Author's estimates. f. Figures are for 1934, from Foreign Bondholders Protective Council, Annual Report for 1934 (Washington, D.C.: FBPC, 1935), p. 224. This includes only bonds being serviced; a more reasonable measure would include the market value of bonds in default. If this av- eraged 30% of par value, figures for 1933-34 would be $5,954 million and 15.8% for rows 4 and 6, respectively. g. Figures for 1939 holdings of foreign bonds are from Goldsmith and are probably under- stated. Sources. Foreign investment: Raymond Goldsmith, A Study of Saving in the United States, vol. 1 (Princeton, N.J.: Princeton University Press, 1955), p. 1093. Domestic data: Raymond Goldsmith, Robert Lipsey, and Morris Mendelson, Studies in the National Balance Sheet of the United States, vol. 2 (Princeton, N.J.: Princeton University Press, 1963), pp. 72-83. economy. Tables 2 and 3 illustrate that, while overseas investment was extremely important for the financial community and some industrial sec￾tors, most other sectors' foreign assets were insignificant. American foreign investments in mining and petroleum were considerable, both absolutely and relative to capital invested in corresponding activities within the United States. Foreign investment was also of great relative importance to corpora￾tions in machinery and equipment (especially electrical appliances), motor vehicles, rubber products, and chemicals. Yet these sectors, which ac￾counted for well over half of all overseas investment in manufacturing, repre￾sented barely one-fifth of the country's manufacturing plant; far more American industries were quite uninvolved in overseas production\ Although only a few industries had major foreign operations, foreign lend￾ing was a favorite activity on Wall Street. As Table 3 shows, between 1919 and 1929 new foreign capital issues in New York averaged over a billion