The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-10-11
SOUTH AMERICAN CREDIT.
Senator Lewis Taken 10 Task for Sug.
costing n Billion Dollar Loan.

To THE EDITOR or THE SrN-Sir: Sem
ator James Hamilton Lcwis's propUsi-
ton to lend \ billion 'oliars to the
South American republics instead or tha
same amour 10 ENGLAND and France Is
absurd. Sterling %oxchunrc rates iHdi-
ate that the loan to england and
France is essential to the commercial
activity of American interests. What
ever Is SO required IN i~nterUat'cr'i eN-
change Is equally beneficial to South
America. II the value of the rouad s'er-
ling is low In New York II is almost
certain that a like or worse condition
obtains In banking circles In South
America, as nearly all the business Of
the countries with foreign countries is
stated in sterling.
Senator Lewis might have suggested
A reasonable o a or credit extension to
the South American States without vio-
lating the rules of reason. but a loan
Of a billion dollars to South America
IA absurd n not needed. 1t Is doubt
full whether the republics OF the south
would take advantage OF the offer OF
SO much money. u II were made. To
what uses 1t could be put to bring in a
fair return IL as obscure AS the Sem
ator's sudden generosity to the south
ern continent.
Loose talk OF South American OPEN
ings and opportunities has caused con-
siderable loss to Americans. and brought
to those countries many who would not
have otherwise left the United States
unless they were sure OF a large salary
and no work. There are openings down
there, but not for men with neither
money nor a knowledge of the countries
and the conditions they must meet. The
opportunities for investment are many,
md Sn,t,n Nu,ariran land ig NOT 10 he
despised. but land Is sold in large lots
and the holdings are not suitable for the
small investor. Men with money who
will take the trouble to buy Argentine
land and place IL under cultivation will
find one OF the best paying propositions
In the entire continent.
South America has passed through
very hard times during the last two
years and In just emerging to a sense
OF financial responsibility that does not
include European assistance or loans.
Those countries are trying to secure a
stable currency and a safe policy In the
lOadling OF their affairs financial and
commercial.
South America needs ships 10 carry
the grain and other products out or the
countries. and needs elevators to handle
next years crops. There are other
things needed which seem to be disre-
garded by some politicians. The South
Americans have stood A considerable
amount OF commercialized talk. but now
they have reached the place where they
want to be treated with the same con-
sideration as the United states employs
I'm negotiating with other couItt'e,.
But a billion dallar loan. never II
would be the ruin OF those states mat
accepted IL. Cor they could never pay the
interest on the greater part OF that
amount. "a they are already pressed 10
pay the interest OF present outstanding
obligations.
To oncr a billion dollars to South
America might ave Just the opposite
effect from that desired. for Ne must
not forget that there are many down
there VINO still believe that IL Is the OBJ
ject OF the United States or OF the Amer
lean trusts eventually TO control those
countries through loans or in some way
equally sure.
The National Ci'y Bank Of New York
is quite familiar with conditions in the
leading Latin American republics. and
4! seems certain that when the time ar
rives for big loans 10 those states they
will he handled in such a way as TO pre-
serve the credit OF the countries TO which
the loans are made and the interest and
principal to the investor. The CITY Bank
has already made wonderful progress
down there in CONNIE rc!al service as well
as In "A banking way.
FRANK y. WEST.
NISEYARp HAVEN, Mass, October ?.