Evening star., 1914-11-08

with German capital. The disordered
currency system has been a source of
gain to the German merchants with
their banking connections and to the
coffee planters. Paying for labor with
cheap money and selling the coffee crop
for gold was certain means of profit.
Though Germany controlled Guate-
mala financially and commercially the
country did not prove a large market
for German products. Half the coffee
crop in ordinary years is taken by
Germany, but one-half the Guatemalan
imports are not of German origin.
In 1913 the exports to Germany ap-
proximated $7.75O,o00, while the i'm
tion over s2.000.000. England struck
almost an even balance. taking Guate-
malan exports to the amount of ST.
$4,000 as against imports into Guate-
mala of $1,S5o.000.
Leading imports from Germany are
cotton goods. woolen goods, linens,
drugs and medicines, pottery and va
rious forms of iron and steel manu-
facture. England leads in cotton goods
by two to one, but outside of these
fabrics has not very large trade with
Guatemala.
The United States, which took nearly
s4.000,000 of Guatemalan products,
sold more than s5,eO0.OOO. Guatemala
is one of the few countries in which
the United States makes good show
ing in the matter of cotton goods. The
imports of these articles in 1913 were
in excess of 100000. as against $780,
900 from the United Kingdom.
In iron and steel manufactures, agri-
cultural and other machinery. and in
railway material, the United States
almost monopolizes the Guatemalan
market. 1t also controls the trade in
leather goods. and it is the chief
source of supply for wheat flour and
other foodstuffs. 1t has the lead in
the sale of drugs. and there is no COM
petition in the sale of lumber. In mis-
cellaneous merchandise it's only serious
competitor is Germany. which supplies
about one-third i'll value of what the
United States supplies.
If the United States can add to the
purchasing power of Guatemala by abb
sorbing more of the coffee crop, the
market for American products is GER
tain to be increased.
Ultimate financial! rehabilitation of
Guatemala must rest with the United
States. Whenever the war of the ma
tions may end, it is certain that Ger
many no longer will be able to finance
the country. The railroad system is
now largely in the hands of American
capitalists, although the bonds had to
be f1oated in Europe.
GuatemaIan finances are more or less
closely connected with the railway
development, as is the general COM
merce of the country. An American
bank is admitted to be a prime neces-
sity. Various attempts have been
made along this line, and few years
ago they were progressing so favor
ably that a former American minister
to Guatemala had been selected to head
the institution. So many obstacles
were encountered, however. that the
plan was abandoned.
Enthusiastic financial promoters have
made numerous efforts to secure capi-
tai for the country, but their enthusi-
asm has become chilled as they, too,
came up against the actual situation.
Nevertheless some day there will be
an American bank in Guatemala estab-
lished on a sound basis. which will help
to develop the resources of the coun-
the mutual trade of Guatemala and the
United States.
Salvador month after the war
opened made an urgent appeal for ar
rangements on behalf of its merchants
with financial and commercial institu-
tions in the United States. Foreign ex-
change was practically unpurchasable
and there was a general Generalization
of international trade.
i
British capital has had much to do
with financing of Salvador in the past,
and is more strongly intrenched than