The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-08-30
II, tU,ULEs VI. PEPPER.
Former Foreign Trade ADVISER to
the Department of state.

~NE ,.c United States spare South
Nu,r.ca $joO,OOO,OO0 during the
" .>j five years? Can 1t supply
..oo ooo,OOO during the next
uv.., n.liu~'
Su.. America wants these amounts
within 81, p,rlud stated. The needs of
>..l| P 'av countries are pressing
Tus '.-l get money somewhere.
Ntr 100 war cloud broke at least
ait.. ....u countries were negotiating
uN.t... for loans. Most of them were
% ,.. '...-. uf commercial and financial
.r.,- ... Go economic causes which
N,r. OIL. work. the world over. Part of
IN, .uH- wanted were merely to take
mood . -a'.uHs 10y new issues. but in
r,.ry ,.-. there was also a demand for
lG...i.. capital. which would have in
erased 10, total indebtedness.
TIL. War has dealt a death blow 20
.h... ,>p..'ations In the famous
l,..g D.4, at Buenos Ayres, where in
.raau.uG finance is discussed 1t is
g.W perfectly understood that with the
European countries staggering for the
.N ..g years under the debts which
b. V.r VIII create there will be no
mo-. lu- for South America. The
SAN. .a standing exists on the coffee
N...a-. ID RIO de Janciro and on the
u,lrs,. .u santiago.
Toni. ,,r.ly some of the South Am, r.
lean committees will suffer as much from
the Wag .~ the nations which actually
lrr ,u.l-,d in II. They will rot only
ay au..., 600 obtain money abroad bu,
also ,...l whole foreign commerce Will
be G.,u.lt,d through the loss OF mar
kt'.
S.M, n: the countries have met tn.
,m.r-,u.y hy following the example of
\, El'.p,tn nations and dcCreeing
n,rt,.I.Ims. llarassed South Amer
ala financial institutions and big COM
n,r,a' firms which were in diiiiculties
may therefore bless The war as avoiding
he necessity of forced payments. but
he's W.l welcome 1t only as means
4 immediate relief 10 debtors who
ul.rN,-. would he forced into bank
rup;,s
Era1 has met the situation, brought
t.l' trough ,hr inability 10 float new
oau> .y providing for a new issue of
paper .rrru,y in addition to the ahut
ian, volume which already Is IN cirCu-
a,.l Time may demonstrate the wis
Ion ug iu. uuwisdom of this action as
IN ,m,r-,ncy measure but it shows the
l,m.ra. .lt,.on that he European war
mas ti.l~,d.
South American public men and the
Lpumtts. representatives of the dif-
ier,.t Governments in Washington who
know how great the dependence has
been nu Europe and who understand
fully %. fiscal status Of their res pective
ola'r,-. inevitably urn their eyes to
be- Du'.d States. and /: is through
nom mat the query comes as 70
whether the United states can supply
few hundred millions capital.
TH- answer which may be given to
h,vU.-'.nu VIII determine whether The
"u.tI states - to obtain commercial
lrrm..y and 70 dominate South
Am.i..4 financially. 1t Will also deter
MIN" ., what extent New York Is u
omp.'r with London as the worlds
money market.
European unanCiers who until the
New l.rt Stock Exchange was closed
ycrr setting gold by unloading Amer
can securities in their look ahead are
now j.Ih',,s- revolving the same qucs-
ION t- 30 what the United States may
10 .u .., WY If financing South Amer
"a. T3 t.,m TN" question takes the
form ~ query: Whether any Of the
American Governments can be shifted
10 The United States, and If SO how soon
and under what terms?
Two billion dollars represents in
round numbers what the South Amer
can ,oIutr.,rs owe in the form Of public
lchts. VIVA, may be called the national
lch's du NOE foot up this sum, but the
nunrpa, and state or provincial debts,
some II which are not guaranteed by
b" national Government, bring up the
.otll.
Al 'ho South American countries have
Iad m" hlrrpw.ng habit. Some of the
weaker and more reckless ones have
tiVcn tar whole continent a bad name
let HE truth is that in view of re-
our'o~ and natural wealth and the
lpd development that has been going
s. GOO "po 600 ~ not an eNtravagan.
'uhc debit total
i S.. 1c found, moreover, that the
erF ar-a proportion IF the debts has
"' 'r.f,i bY the countries which
fe solvent and which scrupulously
h'l i'.r Obligations. BESIDES, while
more .t., been perhaps some unncc-
'Ssary beams for naval expenditures,
%" ua. part IF the loans have been
incurred 'nr public improvements of
'a''H1. ..Iilri"r. Some Of the South
M'rOn Governments has war debts,
-T..F -u.,niug. In spite of terri
ora. Disputes and national rlvalries
A'F Rep the peace among them
selves.
IT." different countries in their ca
a''N tr International debtors form
naturally u'u @roups. On the Carib-
zeal a'r Colombia and Venezuela.
SnN" '.v International imhroglio in
Nh oh FL. 'ulod States took a hand
''h'I., 1s been paying off its debt
'h'.i D.. ID" total amount outstanding
IS 'N. . S35,uO0.OO
'""'u . has what is known as a
Unsolicited debt, which does not eN-
.''' s. ""n 600. The country has man
-'i o. meet the interest in manner
~ sl'. II. ven the critical British for
p" h.' elders committee. Colombia,
Nh'N'r . gets the $4,000 600 Panama
''''1'} om the United States or not
! '"h,' General loan Of something Liz"
), '' 900 "" tp build railways and re-
A "'','H' 'a" country generally. Had
~" S''' HN Bryan accepted the prln-