Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1910-02-18

| :nOCo'A 10 Tic CoASeuSuS u OMG1si
opinion in Washington. X
The supporters Of the project in
Guide every South American diploma
Of note. All declare there is no >iimi
to the gilt edged opportunities whicl
the southern continent offers to Amer
lean capital, and only diplomatic lin
its prevent them from stating in 81
many words that their. respective coun
tries would rather borrow from tn.
United States than abroad. rt'.I i
The Honduran loan Of approximate
~ s., 100000. through John P. Morgan
last August. is the first of the SO called
F'an-American loans to receive Official
approval from the state department.
While behind this approval there is
the spirit Of the new diplomacy which
forces finances to the fore, Secretary
Knox is following his fixed policy of
! eliminating Europe from Central and
South American affairs-a policy that
is not distasteful to the American re-
publics If admissions made by well
posted officials are a criterion. (; .. -
Will Borrow $780, 600,
A canvass recently made shows that
the extent Of these financial operations
is Of large proportions. The amount
involved is estimated at $3.50, 900.
The sums that make it up will be Dor
royed progressively during a period Of
twenty years. l.,
Semiofiicial figures obtained show
that the loans will be divided as fol-
lows: |t%..
Argentina. 500. 100000: Bolivia. $3s.0oo.0oo:
Chile. ,A75,008, 900; Ecuador. $50.000.000; Hon.
duras. >o90o0.00o: Panama, $3o,0oo0oo; Peru,
$6000o,000; Venezuela, $20.0o0.0o0. with the
remaining $50.0oo,00o taken up by the
smaller republics in this category: Colon
bia, }S,0o100o: Costa Rica. $l0.ooo 900; Do
mtnican Republic. $s,ooo.0oo: Guatemala.
$10.ooo.oo0; Salvador, $l2.0oo,ooo. and Uru-
quay. &5,oooooo.
Panama will probably require more
than $4,000, 600, especially when the
canal is in full operation, owing to in
creases in. land values and the neces.
sity Of improving the adjacent terri
tory on both sides under the republics
jurisdiction.
officials, including the diplomatic
representatives of the above namS>
countries, do not deny that these 10 . ~
cannot very well be carried out -
out the aid of a Pan-An2erics Ia..,,
whose rate of exchange can .,n., no,
of London and Paris. 1t 49,, s,sa
that it will not be one ~. ~" oh''a. '
tions Of the lender-lt' The lender be an
American bank-to Nv in ro1d 90 tho
new bank would b ave arrancemonts tn
honor any 'othe' currency at full mar.
ket value.
Nssdee FOR Panama Canals Success.
That The United States cannot very
well hope to make a commercial sue
cess of the Panama canal without such
q central international banking institu-
}tton is another admission made by Of
dcials. 1t is cited that Great Britain
has the advantage Of branch banks at
|! Cairo and Alexandria, in Egypt, in
| order to have every banking facility
with which to carry out its enormous
traffic through the Suez canal. Con-
pcrative statistics based upon the ton
mage that goes through the Sues and
which will find it more convenient to
use the Panama canal and other data
furnished by the department, Of oom-
merce, labor and navigation oe the Bu-
ropean governments show tat the
Panama canal will not have to wait as
long as the suez canal did to reach its
highest development. 1t win mean
| only two years at most to rearrange
travel schedules, shifting the routes
from the Mediterranean to the Panama
canal. o..
Tolls and other charges, besides
drafts and general exchange OF COM
mercial paper, made necessary at two
ports Of the Importance that Colon
| and Panama will reach as soon as tho
canal is In operation, make It neces-
sary. diplomats say. for bank OF IN
limited possibilities to be In: operation
at either Of these cities. And such a.
bank could very well be the 'Pan-Amer-
lean bank. operated by the wealthiest
banking interests of the United States
a., for instance, the Morgan, syndicate,
whose branches In the European
money centers give them every advan.
tage in Europe without .disi6dSinE
their gold reserves at headquarters \
Owing to the delicate relations be-
tween the southern republics and the
likelihood that trouble may always
arise to sway. to "a certain extent, the
credit or financial standing Of any
of them. It Is said that the bank would
have to be an Institution bonded by
the American, : government, which
would thus be responsible for its OBJ
ligathhs: lit, would also guarantee the
bankittg syndleats the protection Of
the United States:: Which Is the nucleus
of the so called partnership between
the state department and nnanciers in
terested in the Pan-American bank
project.