Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-09-06

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European fmbroglio, is in a splendid stra-
tegic position as regards these $4,000, co.,
600 OF interchangeable commodities. 1t
cannot only hold fast what 1t has, but 1t
should also make permanent gains.
X
The exact figures of the South American
commerce are not of consequence except
to statisticians, but the total for last
year most likely would show more than
$500, 100000. Between $4,000 900 and
S100, 10000 Of this amount may be cred
tied to the trade of the countries with
one another and the oriental and Aus
tralian traffic of the west coast. The
balance-somewhere in the neighborhood
of $4,000, 900, o00-is for Europe and the
United States to divide.
Taking the whole field, in most years it
will be found that the balance Of trade
is in favor of South America It is safe
to say that Europe and the United States
sell to the South American countries I'M
der normal conditions $40 DOC, 600 or $780,
100000 less $1,000, 600 900, and take from
then $1,000, oOoO 900 plus 100000 to $780,
100000. Americans are in the habit OF
thinking in big figures. and by keeping
these approximate totals in mind they
will have before them a mental picture
of what the trade of South America
means to Europe and the United States.
The European war therefore upsets the
equilibrium of South Americas 50 COO, OOO-
900 foreign trade. This equilibrium when
normal times come again. Of course, will
be restored. but the proportions of the
respective nations will not be the same.
Some of the commerce will have shifted
for good.
Coal is an eramnla NJ commodity
that was affected overnight by the war.
South America Is an enormous consumer
Of coal. On the west coast the demand
has been largely supplied by Australia,
with a little help from Japan On the
east coast England Is the source of sup
ply. Rio de Janeiro, Montevideo and
Buenos Aires all have great coaling sta
lions. These are not only to meet the
demands for domestic consumption, but
to serve the needs Of a vast steamship
traffic.
American exporters. probably much to
their surprise. were in a state Of some-
thing like preparedness to meet this
South American demand for coal. The
various departments of the government
had investigated for them and made full
reports Several Of the coal companies
had sent their own special representatives
TO study the situation.
Brazil. which needs 100000 tons a
year, was already taking considerable
quantities of American coal. At Monte
video the Uruguayan government had
made a test of Virginia coal based on
the American navy test, and the trial
shipment had proved satisfactory, SO
that Uruguay was convinced as to the
suitability of American coal for it's needs.
Argentina, which has no coal Of its own,
was also ready for American shipments
to BuenoS Aires. Argentina burns 4,OOO,-
0O tons a year.
In these circumstances It is not aurpris-
Ing that some of the larger companies in
the United States were ready to meet the
immediate wants of the east coast by
taking emergency orders and that other
dealers are preparing to follow them.
England may succeed in keeping the
lanes of ocean travel between Buenos
Aires, Monteyideo and Rio as open as be-
tween New York and Liverpool. but this
lis not certain, and the uncertainty Is
bound 70 influence South American con-
sur1ers who must have coal, and who can
take no chances.
Moreover, no one can calculate how
much the British navy will need, if the
war continues long. Cardiff coal will be
supplied in diminishing quantities to the
eastern ports of South America and the
United States Is the only country which
can make up the deficiency.
+ +
In peace times. the Panama canal might
have aided the English coal trade, since
the Cardiff cargoes which now go around
the Horn. and as far up as Callao. would
be able to stand the canal tolls; but there
would be the same danger Of hostile
ships TO cargoes of British coal through
the canal as to cargoes on the Atlantic
route to Rio de Janeiro and Montev1deo.
Since the bulk of the coal imported on
the west coast comes from Australia. 1t
might be assumed that there will be little
interruption to this traffic, but with the
war spreading to the orient, and with the
possibility of a German cruiser turning
up somewhere in the Pacific, coal I'M
porters On the west coast are not likely
to depend on Australia, especially as most
Of the Australian coal is shipped In sail
ing vessels
The opening of the canal will enable
them to turn to a certain source of sup
ply through Newport News and Norfolk,
and through some of the gulf ports Chile
requires 100000 tons annually. of which
the native mines can supply only half.
Everything that South America sells
Is affected by the war. Some of those
who think that as consequence Of Eu-
ropes armed struggle the whole trade of
South America Is going to fall at once
into the lap Of the United States, overlook
that temporarily, some of the South
America countries will suffer almost as
much as the continental countries This
will not be through the impairment of
their productive resources, but through
the curtailment of their markets The
fundamental question as relates to the
United States Is how much of South
American products this country can alb
sorb both for its own consumption and
tor distribution to other markets
The Ecuador cacao crop furnishes an
illustration. Ecuador produces about one
fifth of the worlds cacao. or chocolate
bean. Heretofore Hamburg has been the
chief source of distribution to the Eu-
ropean market. although some of the
crop has been handled at Havre and at
London.
Shipments to Havre and Hamburg are
not likely to be attempted while the
ninety-day draft on London. which has
been the favorite method of financing the
movement Of the cacao crop, Is not now
practicable. The Guayaauil merchants
will prefer drafts on New York. More
over the Panama canal is open. and the