New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-08-06

capital expenditure is very clear. When
British finsnciers supplied the money
for q railway, they, of course, stipulat-
ed that the rails, rolling stock and
other necessary equipment should be
purchased in Great Britain. Money was
advanced for the development of the
cattle business, for the packing indus
try, for building public utilities and
for enterprises of every description,
and in the same way the money pro-
vided was used to pay for the output
of British industries. All this was es-
sential to the great development of the
Argentine.
As with England, so also with Ger
many. Going into the field later, she
likewise furnished vast sums OF money,
and stands second as an investor In
most of the countries. In fact, German
gold built up new and additional
commerce to that already developed by
England.
France, Italy, Belgium, Holland, and
TO some extent Spain and Portugal, par
ticipated in like manner, but on a
smaller scale.
Because of the conditions brought
about by the war. il is clear that the
European countries cannot 60 on with
this programme of investment and up
building. While the extent of con-
structive progress is already surpris-
ing, it has only begun in practically all
of the countries. The field as yet I'M
developed is much larger than that
which has thus far received attention.
The resources still to be utilized are
enormous and great opportunities re-
main.
Moreover, the stoppage of the flow OF
capital as a result of the war, and be-
cause of a period of readjustment pre-
ceding it, has brought about situation
where investments now made with rea-
sonable caution are firmly buttressed
by previous expenditures, and are even
safer than they would have been ten
years ago. The biggest single oppor-
tunity for business in South America,
therefore, will be in the careful use of
North American capital. This group oil
countries were pioneer in character
when the investments Of European cap
ital began, and it may be said with
fairness that, because of this fact and
the risk involved. very high returns for
money were justified. There is little
doubt. however, that in many direc-
tions European financiers took all that
the traffic would bear, and were none
too liberal in their attitude. The Unit
ed States has a great opportunity TO
benefit by this experience II policy OF
liberality is pursued.
While Europe is the great creditor Of
South America, the United States has
invested appreciable sums already and
in every instance the effect in develop
ing American business has been very
marked. On the West Coast our Amer
lean mining companies have expended
millions and are planning further ex-
pansion. The total amount invested
with the expenditures for which com
mitments have been made, on the west
Coast alone are estimated TO exceed
Sl00, 900, 900. In Brazil American Dank-
ers have recently taken share In the
iron mining development, which VIII
run into very large figures, and IN
the packing houses of Uruguay and At
gentina we have large investments. we
have also contributed something to the
raising of cattle and sheep, the estab-
lishment of public utilities and the
| handling of forest products, but, our
| total investment is obviously very
small rs compared with Europe.
There are many packing houses to
be developed, for not only in Uruguay
and Argentina does cattle raising prom
Use very large returns, but IN Para,
ouav. Chilli, Southwestern Brazil and
some of the Central American coun--
tries. There are oil fields in some OF
the countries which are sure to receive
attention, railways and public utilltles
to be improved or extended, power en-,
terprises, calling for American skiIl
and machinery, while the business In
hard woods, sugar, cocoa and mining
opens up very large fields. The great
mineral wealth of the Andes is still to
he uncovered, and American engineers
are almost sure to be the leaders IN
their further exploration. In some OF
these countries there are also splendld
onenings for grain elevators. These
are almost certain to be established
under American auspices.
Since the war began we have IN,
vested more money and negotiated
more loans to the governments Oh
these countries than ever before. IL is
estimated that since July, 1914, tnese
new investments have amounted 70
about 100000 900, and there are IN
process of negotiation additional loans
which will undoubtedly be presented 10
American investors during the next
year. II is obvious that the average IN
weston will 60 rather slowly at the OUT
set in putting his money into wnat ne
reoards as new lands, but most OF them
have reached stage Of settlement ana
stability which we little appreciate IN
the United States.
We still have much to do in the
United States, of course, but those VINO
are most familiar with Central ana
South America and who understand
present day conditions appreciate that
American dollars put into these coun-
tries to-day are certain to bring large
returns, with almost as large margin
of safety as at home, where the IN
vestments are properly made.
And the effect of such investments on
our general commerce Wall De e1acViy
the same as it has been IN the case "a