Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1915-03-13

OF an American financial system Tor
South America. Several Of the great
republics in South America are in
clined to escape from the European
system and Join the United States.
The Pan-American conference In May
is expected to develop something along
this line. A prominent government
Official who has recently returned fsom
a visit to several South American cap
itals, hsings this message: When you
get back to Washington tell your gov
ernment that the European war has
made US all realize that we do not be-
long to the European economic sys-
TEN. We want an American system.
We believe the United States is big
enough and powerful enough to lead
such a system, and We are willing to
see them do it, but we must have an
uhderstar ding as to the details Of the
system, and particularly as to it's po-
litical aspects"
If such a system can be built up,
and rendered effective and efficient, it
will be one more justification Of the
Monroe doctrine, and a realization Of
the dreams and aims OF many of AM
erice's greatest statesmen. After all,
the European war may yet serve to
bind more closely together the Repub-
lies Of the American continent.
In one Of the larger South Ameri-
can countries a government official
presented to a leading bank a draft
for $3.50. His expenses to his next
point of destination were carefully
figured out and he was rendered So
and .o,d that was all the gold he could
get. The trouble with South America
at the present time, according to this
official lies primarily in the fact that
il is essentially producer Of raw ma
terials. In Chile the war forced a sus-
pension in the operation cfsthe phos-
phate and nitrate beds and threw GO, 900
persons out Of employment. In Peru
both the sugar and cotton crops fell
in value in proportion TO the fall in the
price Of cotton even in the United
States. In Brazil the rubber market,
especially, has felt the heavy hand Of
a suspension Of commerce and in all
the South American countries the cry
is universal for ships. Argentine and
Uruguay alone, which make special
ty Of foodstuTs. have maintained a
comparative normal business condition
while some Of their neighbors are
rapidly making progress in the same
direction. 1t has been no secret
around Washington that one of the
reasons for the recent agitation for
the ratification of the treaty with Co.
lombia was the need Of that country
fer additional resources at this time.
The political aspect of the situation
in South America, referred to in the
message brought BY the government
Official, naturally hinged on the Mon
roe doctrine. II is to the interest of
the nations CT South America as we'll
as Of the United States, to take steps
now to anticipate what the future
may hold forth for both financially.
For the first time in its history the
United States is rapidly acquiring a
new role in finance. namely, the role
Of a creditor, rather than a debtor ma
ton. The heavy balance Of trade with
Europe which has been enjoyed in the
last several months has enabled this
country to pay off in part the heavy
debt Of the United States to Europe,
frequently estimated as high as So
000, 00o, 900. At the same time, the ma
lions Of South America which are
equally in debt to Europe, II not more
so, find little or no opportunity to dis
charge that obligation, or even to pre-
pare to take care Of it when the war
is over. It is estimated that Brazil
alone owes to Great Britain and
France about 81 on. 100000. It is re-
garded as moral certainty that after
the European war is over. and time
comes for a settlement, some steps in
that direction must be taken by Bra
I'll, and in this particular Brazil is in
little worse circumstances than are
several Of it's neighbors.
Those who are on the inside Of the
situation at Washington, are confident
that South America is looking ahead
to the May conference as the stepping
stone to solution, not only Of their
own financial problems, but Of the all
American problem. It seems to be an
opportunity for the United States to
make the Monroe doctrine mean more
to the young and growing nations Of
South and Central America than it
has ever meant before, but also to
cement our financial and commercial
relations with those countries in a
manner that shall be Of benefit not on
ly to the trade Of the United States,
but Of equal return to our neighbors