The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1915-01-08

crops of Argentina had not been received
by one of the members of the syndicate
which is in close touch with commercial
Interests in Argentina
The faith and credit of that republic
stand behind these notes, and in recent
years Argentina has abundantly protected
her credit, so that it is now excellent. The
indications were, Immediately after it was
announced that syndicate had purchased
these notes, that they would speedily be
absorbed for they appeared to be very
tempting to investing capital. The credit
behind them is excellent. The issue is not
large and the income from them Will be
in one case per cent and in the case OF
two of the longer series ga per cent. In
the financial district it is commonly I'M
derstood that the commission which the
sy indicate has agreed to charge is some
what below the customary charge for
handling transactions Of this kind. There
fore it is presumed that the transaction
has another aspect than that of simple
matter of financing or lending money to
foreign government. The probabilities
are that the syndicate was in some meas
ure influenced by the desire to seize one
of the great opportunities which the for
eign war has opened to the United States
While a great deal of American capital
has been brought into Argentina and also
into other South American countries, none
was invested in a national loan until this
syndicate was organized
For many years, Argentina was accus-
toned to look to London for capital. At
one time the republic so overstrained itself
as to bring on the disastrous panic di-
rectly occasioned by the failure of Barring
Bros. This panic shivered credit all over
the world, and was one of the causes OF
our own distress in the spring and sum-
mer of 1898.
money in Argentina has been is shown by
reliable estimate of the aggregate invest
ment of British capital there. which was
nearly s1.500O00.000. This was consider
ably more than the total of the invest
ments France made in Argentina, al
Though. the aggregate of French invest
ment was estimated few months ago at
$4o0, 100000 and of German investment at
$500, 100000. These investments furnished
the means which have enabled Argentina
to develop her industries and her natural
resources more rapidly, and to a greater
extent than any other South American ma
ton has done. How rapid this growth has
been, for instance. in the field of agri-
culture, is shown by the increase of cuti-
L
some u, 100000 acres of Argentina soil were
made productive. A year ago this was
increased nearly 100000 acres.
Argentina's Foreign Trade
AS Argentina has population not much
In excess of 100000, it was evident to
her business men and statesmen thct she
must rely in great measure for prosper
ity upon her foreign trade, since the do
nestle trade would be. relatively speak
ing, small. Fifteen years ago Argentina
exported commodities of the money value
OF $50, 100000 and she paid, STA, 100000.
round numbers for her imports. Today
the republic is able to report one of
any nation has gained since 1900. A year
ago official statement was made showing
that the money value of her exports was
little under $500. 100000, while the money
value of her imports was approximately
S425, COZ, 600 and apparent trade balance in
her favor of about S5,O00.0O0.
These are figures which must have been
brought to the attention of the syndicate
because they show the magnitude of the
market in Argentina for products that are
manufactured in the United States. The
republic does not need to import much
OF any food products, but 1t does need va
rious manufactured commodities almost
all of which are or can be made in the
United States.
Trade Follows the Loan
Much the greater part of the commerce
of Argentina has heretofore been with
Gil eat Britain, Germany and France,
thereby furnishing once more testimony
which sets forth the truth in the modern
saying that trade follows the loan.'