The Birmingham age-herald., 1915-05-24
GUGGENHE|M WORK ID FIGURE LARGELY IN BIG CONFERENCE What They Have Done to Further Dollar Ex-
 change in Chile IS REAL METHOD
 TO INCREASE TRADE Utilization of Dollar Exchange" Will be One of Chief Subjects at the
 Pan-American Conference
 This Week
By HOLLAND

By HOLLAND
 New York, May 2s-( Special. )-By a coin- cidence not planned, but none the less in- teresting and timely, the meeting of the Pan-American financial conference in Washington, May 24 will be substantially identical in point of time with the an- nouncement that the Chile Copper com pany Is ready to begin opperations and may begin them before the conference is ended This corporation-with which the Guggenheims are associated and which approximately $25,0000OO In Chile copper properties-has pr been for some years pre- pairing for what is expected to be the largest copper company In the world. 1t has received concessions from Chile and its plant lis without superior anywhere in the world. The presumption is that the company will be able to market copper at an exceptionally low price, Its smelt- ing plant in Chile will turn out the re- fined copper. This will be placed aboard vessels which will navigate the Panama canal and in this way reach the great copper markets of the world
 The Chile Copper company will supple ment the output of the Braden Copper company, which has already for some time been in operation, and which Is also owned by the Guggenheim interests.
 Aside from the fact that this invest ment of American capital in South Amer lea Is the largest made up to the present time by any United States corporation, and will probably be followed by larger investments in the development of the copper properties of Chile there Is an- other point of view which in all prob ability will specially appeal to the dele gates who will represent various coun- tries at the Pan-American financial con- ference. For it is in Chile that the first practical and actual attempt to utilize exchange issued in terms of dollars in stead of pounds sterling has been made. When the time comes that all of the South American nations recognize what Is called dollar exchange" and make use of 1t as they have in the past exchange drawn on London in terms of pounds sterling then the United States will have taken a great step in the direction of commanding that part of the South Amer ican trade which 1t ought to have. So- called dollar exchange will greatly fa- cilitate the operations of the branch banks which with American banking cap- ital are now being established in South American nations. Already bills drawn in terms of United States dollars have found considerable market in Chile. and this is due to the efforts, thoroughly scientific and economic, which Leopold Fredrick has for a long time been making. MT. F'redrck is the financial adviser of the American Smelling and Refining company and also of the two copper companies in Chile which are identified by the Guggen- helm interests. The Guggenheim corpora tions are now regarded as among the greatest industrial organizations in the world. The corporations which they con trol possess very great mining proper | ties not only in the United States but
 also in Mexico and Chile. The corpora tions export copper, silver. lead and afreo
 products each year of the money value 1 of more than $l00,0O0,0O0. With the re- turn of normal business conditions and peace throughout the world, these ex-
 ports should be greatly increased.
 Chile and Dollar Exchange"
 l Sometime ago. MT. Fredrick made a l special study of financial methods ir
 Chile and after having obtained all the 1 information that was needed he perfected a system by means of which the market l has been created in Chile for so-callet dollar exchange" Until this market was
 established drafts on London were. with out exception, the prevailing exchange | melnOQs Tn Cnlie. IT IS OOuDtle89 Dy red
 son of his familiarity with the copper in dustries of Chile. and especially the higl
 position he has attained as master of th science and art of foreign exchange. tha
 he has been especially invited by the Sec l retary of the Treasury, MT. McAdoo, t take part in the Pan-American financia conference. Already many favorable am ! highly-encouraging responses have bee received by MT. Fredrick from the man agers of the great American industrie who carry on business with South Amer ica and who hope greatly to increase tha business. That is a hope which Is to the dominating spirit of the Pan-Amer lican financial conference. Furthermore the state department at Washington Ina carefully. discreetly. but nevertheless er phatically, allied itself. so far as it possible to do so, with those who ar seeking to establish dollar exchange" i South American countries. The mora support of the state department is prat } tically pledged to this undertaking.
 Tn. order the better to understand tn difficult and very great financial opers tions especially in relation to dollar es } change" in South America. referenc may properly be made to communics ton to Paul Warburg of the federal rt serve board at Washington in mid-winte MT. warburg was known to be intensel
 Interested in this subject looking upo ! the establishment of dollar exchange as something which will by and by be (
 great value to the federal rsservs systes