The Birmingham age-herald., 1916-09-03
CUSTOMS UNION IS
 NOW INDICATED IN
 SOUTH AMERICA
Commercial Treaty Between Argentina and Paraguay Beginning of Better
 Relations

Buenos Aires, August 25.-(Correspond- ence of the Associated Press s)-During the recent centenary celebration a new commercial treaty between Argentina and Paraguay was ratified. Though the trans action may be considered of little im- portance from the economic point of view, since the present interchange of commodi- ties 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 in natural produce for a period of 10 years. For manufactured articles these facilities are withheld until five years after the ratification. This clause was inserted in the interests of small manufacturers.
 The treaty had it's rise in sentiment. Ever since the war between Paraguay and the allies Argentina, Brazil and Uruguay), the vanquished have had to struggle against adverse circumstances. The manhood of Paraguay was literally wiped out of existence 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 com- motions and military revolts have been maintained ever since. Though at peace for six years and well governed, the situation in Paraguay is still precarious to degree, the paper currency having depreciated to an almost incredible ex- tent. it's purchasing power is practically nil Fluctuations are so frequent that speculation on the rate of exchange has
 become veritable gamble, as it was in Argentina before the monetary problem was solved 15 years ago, when the paper unit was given definite gold basis. It is hoped that the treaty will give the Paraguayan dollar certain degree of stability and consequently an enhanced value This is one of the material ad- vantages which local f1nanciers foresee. Another important one is that smuggling will be discouraged and finally stopped. This traffic has hitherto constituted al serious problem, for the frontiers are sol vast, and so accessible, that no proper vigilance could ever be established along their sparsely populated subtropical and unhealthy extensions.
 The manufactured articles exported to Paraguay from Argentina are: Saddlery, candles, matches, sugar, furniture, shoes, etc Paraguayan exports to Argentina are: Fruit, vegetables, yerba mate Paraguay an tea), timber, lace and conserves, the value of which in 1915, aggregated s2, SS7 gold, against imports from Argentina valued at s1,550,316 gold
 The belief that the results of the treaty will be series of identical arrangements is not, however, general. At least no other republic has yet asked for an ad- justment in accordance with the spirit of the most favored nations clause. Nor does the Commercial Union of the future receive much credence. It is well known that the elected speaker. In 1908 he returned as representative of Lauderdale county and
 was for the fourth time elected speaker Of the house for a four-year term. He is said to have been the greatest parlia- mentarian who ever held that trying posi- ton.