The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-10-09
SEES BETTER TIMES
IN SOUTH AMERICA
Engineer Says There Is a Large
Potential Market for Rail-.
way Supplies.
BUT L. s. MUST WORK HARD

~Frederick LAWS. consulting engineer.
until recently engaged in railway en-
cheering In Argentina, has written an
article appearing In the RdtIiCdp Age
Ga .ette. issued to-day, on Trade OPP
portunities in South America" In which
he shows that there Is a large potential
market for railway supplies in South
America, which, however. cannot be cap
tured Immediately. but only by a steady
and persistent campaign.
Railway supplies have been very
largely furnished heretofore by England.
Germany, Belgium and France, probably
about in the order named. and l should
think with England very largely In the
lead" he says. There seems to BE- no ress
on TO expect that England II not and will
not continue to be able 10 supply all or
nearly all the demands made on her for
practically all lines OF manufactured
products.
THE purchasing power or South
America has been decreased first, by
reas son of the fact that II Is largely
indebted TO Europe and there Is, there
fore an actual dearth Of real money
second by the fact that Its credit has
been strained by overspeculation and too
rapid development third. entire suspen-
sion OF European ability 10 make loans,
and fourth. decreased demand for South
Americas products.
I'm estimating the possibility that
American manufacturers may take ad-
vantage OF the present way situation to
Introduce their goods into South America.
and especially SO far as regards railway
supplies. the factors which see,n 10 the
writer most important are that Great
Britain will not have to materially cup
tail her production that while the ship
ping facili+es Of the world are con
sider4lply decreased by the practical with
drawal Of all the German boats and the
use OF some commercial vessels for the
purposes OF war yet. with the largely
decreased volume o: business Of all kinds
throughout the world. the available ship
ping VII probably be able To take care
OF IL
South Americans have been quite gen
orally educated 20 and have developed
the habit of trading with Europe. and
80 far ~ regards England and France
they have little reason to change now.
Most important OF all. due to the quite
universal fr>,ncial depression which has
existed In southern South America for the
last eighteen months. and which has
been Greatly acCentuatod by the present
war. the purchasing power OF these coun-
tries Is very largely decreased. or almost
entirely destroyed for the moment unless
~ extremely long credits.
The time has come when the manu-
factuters OF the United States must find
the means OF extending their business
! with foreign countries In spite OF. rather
| than because OF the war. The campaign
! to secure this business. or a greater pro-
/ portion OF the business OF South America
/ Will be "A long and expensive one and large
| results will probably only come slowly
/ There Is very little prospect OF the i'm
/ medinte extension Of American trade with
, South America, owing to the generally
! prevailing financial depression and the
/ great cu'tailmeut OF the purchasing power
| OF all these countries. II Is, however. Il
! time when n properly organized campaign
/ may well be started AZ II Will be much
! easier now 20 obtain a hearing In many
/ places heretofore more or less inaccessible
than IL was when the South Americans
would only listen To those who were lend
! Ing them money.
ANY serious campaign for the eNten-
sion OF our trade must eventually CON
/ template considerable investment ol
T American capital I'm South American en-
| terprisee. under the direction Of AmerI-
! can managers. The financial depression
/ now existing in South America is bound
/ to be- only more or less temporary, IN
/ spite of the war Sooner or later the
purchasing power will be restored. and II
! we are to be in "A position TO take ad'
vantage OF II We must begin now 10 make
our parat!ons and lay our lines