New Britain herald., 1916-09-01
HOPE FOR PARAGUAY
 IN TRADE TREATY
Argentine's Act May Mean Pro- longation Of Neighbours Life

Correspondence of the Associated Press)
 Buenos Aires, Aug. 18.-During the
 recent centenary celebration a new
 commercial treaty between Argentine
 and Paraguay was ratified. Though
 the transaction may be considered of
 little importance from the economic
 point of view, since the present inter
 change of commodities between the
 countries is relatively unimpOrtant,
 its probable significance is great, for
 it may mark what some believe will
 be the orientation of the neo-Latin
 republics toward a future ZOllverein
 or customs union.
 The treaty provides for free trade
 1n natural produce for a period of
 ten years. For manufactured articles
 these facilities are withheld until five
 years after the ratification. This
 clause was inserted in the interests of
 small manufacture
 The treaty had it's rise in senti-
 ment. Ever since the war between
 Paraguay and the Allies Argentine, Brazil and Uruguay), the vanquished
 have had to struggle against adverse circumstances. The manhood of Par aguay was literally wiped out of eX- istence before the Allies were able to impose peace. The country was, in fact. financially and completely ruined Civil wars succeeded war; and, with very brief intervals, political cOmmO- tions and military revolts have been maintained ever since. Though at peace for six years and well governed, the situation in Paraguay is still pre- carious to a degree. It's purchasing power Is practically nil. Fluctuations are so frequent that speculation on Nf oI,oro oca hn a veritable gamble, as it was in Ar gentina before the monetary problem was solved fifteen years ago. when the paper unit was given definite gold | basis. It is hoped that the treaty l will give the Paraguayan dollar a cer- | tain degree of stability and conse- | quently an enhanced value. This is | one of the material advantages which 1 local financiers foresee. Another inn | portant one is that smuggling will be | discouraged and finally stopped. This l traffic has hitherto constituted | serious problem, for the frontiers are so vast and so accessible that no proper vigilance could ever be estab- Iished along their sparsely populated and unhealthy exten- sions.
 The manufactured articles exported  Saddlery, candles, matches, sugar, furniture, shoes, etc. Paraguayan exports to Argentina are: Fruit, yerba mate Paraguayan teal timber lace and cOnserVeS, the value of which in 1915 aggregated S2.257.8S7 gold, against imports from Argentina valued at $1,55O,S16 gold
 No General Movement. ~
 The belief that the, results of the -rea+v will be a series of identical ar ,angements is not, however, general. At least no other republic has yet sked for an adjustment in accord 7nce with the spirit of the most favored nations clause. Nor does the union of the future re- ,eive much credence. It Is well known that the stable products or every one of these republics are very similar. Uruguay, for example, sends fish and poultry to this repuphc' which in turn, sends to Uruguay h1des' fish, poultry, etc, but naturally III lesser quantities, the disparity be- tween the populations being in favor of Argentina. Chile exports wine To Argentina although the champagne country of this republic, Mendoza and San Juan, are separated from the sister republic only by the Andes, the trans-Andine railway connecting them Brazil sends yerba mate (Paraguayan teal, competing in the Argentine market with Argentine, Uruguayan and Chilian articles of the same order. Coffee ,s. of course, Brazil's speciality. She also sends fruit, sugar, tobacco and mandioca, receiving in return prac- 1ically the same goods. Free trade between these countries would prove Q great mutual saving in the matter of custom house officials salaries at all events. This consideration is deemed fatal to the realization Of the scheme. The official world looks coldly upon it.
 Also worthy of note is the treaty