The Washington herald., 1917-06-21
HOLLAND LETTER
The Biggest Daily
Financial News Feature Of
the country's Best Newspaper.

Of the great forces in the Copper @ e. Ine ins
dustry In the United States, with a
party OF business friends, some Of
them men OF large capital, visited
South America, venturing inland as
far as the capital Of Bolivia. The ex-
rest, but also for investigation into
certain mining properties and particu-
larly copper, OF which reports had
come to the American copper pro-
They found the copper there and
the day 10 not distant, probably, when
American capital will be invested in
| these copper properties. For the COP
per demand has reached such stupen-
dous proportions, and is 30 surely TO
the war, that the whole world is now
being scanned by the experienced eyes
Of copper producers in the hope that
| old properties may be highly devel-
oped, and new properties worked. Al
ready, In South America, American
capital, part of 1t in Peru and part of
It in Chile. Is invested to the amount
Of many millions of dollars in the
production Of copper. and so satis-
factorily invested that one Of the
corporations has recently decided
greatly to increase its plant. In one
by the American visitors that in
the year 1915, nearly 1000 tons of cop
per was mined. Not at any previous
time in the life OF the republic had an
amount equal TO or even approaching
crease was due chiefly to the enor-
nous increase in world demand for
copper. Much more than 1900 tons
would probably have been produced
had 1t not been for lack OF transporta
ton facilities.
The single railroad which reaches
these copper properties was SO poor in
equipment, possibly so inefficiently
managed, that 1t was not able to
handle the traffic satisfactorily. The
Andes Copper Company. which is a
subsidiary Of the Anaconda Copper
Company, has recently Investigated
certain copper properties in Bolivia.
The investigation resulted In a ten
tative offer of the mines for a certain
sum. But It seems not to have been
acceptable to the American copper
authorities. although the ofter was was
not absolutely turned down. The
Americans were anxious to invesu-
gate other fields, especially certain
properties located in Peru. Neverthe-
less the chances are good that Amer
lean capital may secure the Coro
Coro copper properties Of Bolivia be-
cause the copper in those mines was
recognized by the experts as resemb-
ling the copper secured from the Cal
umet and Hecla, the Copper Range
and other copper mines OF Northern
Michigan.
Bolivia did export to the United
States in 1916 copper to the value of
nearly S4,O0O, 900. whereas in the first
year of the present century her ag-
gregate export of this commodity was
only Of the money value of $4,000.
Amerlea,s OpportunIty.
Notwithstanding the stupendous
financing now in progress, and the
even greater financing which must be
achieved before the war with Ger
many is ended. American capital is
turning its attention to South Ameri-
ca, with the view OF commanding by
the time the war is ended, COM
merce and industries which hereto
fore have been controlled by France,
Germany and England. One OF the
reasons why capital is thus interested
Is to be found In the fact. which has
government at Washington. that the
European war has very greatly
diminished the commercial relations
Of Great Britain and Europe with the
South American countries.
II we take, for instance. Bolivia,
and the European countries with
which Bolivia before the war had her
chief commercial relations, a few
figures will show how directly the
effect of the war has been felt in the
America, and what the opportunity
for the United States Is in making
good this falling OF.
Before the war began. much the
greater part of the imports into
Bolivia were the products of the in
dustries of Great Britain, Germany,
France and Belgium, and TO some ex-
tent Italy. Belgium In proportion to
her size and population did as much
business with Bolivia as did any of
the other nations.
Germany was the master of the i'm
port trade with Bolivia up to the
beginning of the war. Her leaders
must have known that unless the war
could be speedily ended she would
lose for a long time. and very likely
with Bolivia. In 1915 Germany sent TO
Bolivia commodities of the money
value of not quite one half OF the
entire imports. Great Britain stood
next, Belgium third. France fourth
and Italy fifth. In 1915. year later,
Germany lost nine-tenths Of her trade.
while Great Britain lost more than
one half OF her trade. and the other
countries lost proportionately. In
1914, the five countries sent to Bolivia
commodities of the value of %, ,50O, 900
bolivars. whereas year later, they
sent only about 6.6T4,O6O Bs.. Bs. being
the abbreviation for the Bolivian
standard coin. OF course, there was
an enormous falling of in customs
duties. thereby entailing severe fiscal
disturbances.
Railroad Building Important.
Had It not been for the swiftness and
wisdom with which business men of
| the United States acted in that crisis,
Bolivia's financial distress would have
been greater. The United States in
1913 sent goods to the value of 100000
goods of the value of 5,0O0,0 900 boli-
vars. The United States and Peru to-
gether exported to Bolivia much the
| greater part of the commodities upon