The Washington herald., 1917-05-14
HOLLAND LETTER

Gently from q Visit 10 all OF the South
American countries, spoke this morning
with some enthusiasm of the relation
Of Bolivia to the European war and to
] the United States as an ally. When
! Philander G. Knox was Secretary Of
State he sent Mr.. wands upon two or
three. confidential missions for the State
Department to South. American coun-
tries, and upon one occasion to Central
America. These visits procured for Mr..
wands many friendships among the lead
ers in South America, who were able to
give to him important information, much
of which is now contained in the archives
! Of the State Department
Mr.. Wands Is of the opinion that II
viii be well for the people of the United
States to bear in mind that Bolivia was
the first Of the South American nations
to come into alliance with the United
States after we had severed diplomatic
relations with Germany. At the begin
ming Of the war Bolivia was greatly en-
barrassed by reason Of the inability to
export a vast amount of copper ore.
Much OF the income Bolivia received was
from an export duty upon copper ore.
U. S. to SmeIt Bolivian Copper.
Nevertheless this embarrassment may
turn TO the advantage of the United
States for already copper smelling plants
have been established in the vicinity of
New York, for the present experiment
tally in the hope that the test will show
that we can prepare for the market
much OF Bolivia's copper. II we can
make permanent that industry, we shall
be able after the war to free ourselves,
to some extent at least, from the DOM
ination which England has heretofore
maintained over the copper markets of
the world.
Mr.. Wands reports that there was
much qualification in Bolivia that the ma
ton was successful in placing a long
time loan with the United States since
the outbreak of the European war. 1t
was the only country in South America
that was thus successful for the Argen-
tine loans, though very large, were of
short duration. This Bolivian loan was
financed by New York. Philadelphia,
Pittsburgh and Boston capital The un-
derwriting of 1t was accomplished by
Chandler & Co., who have now asso-
ciated with themselves the Equitable
Trust Company Of New York, as we'll as
a Chicago banking house. Although the
loan was for only s3,50O,oOo. yet the ease
with which 1t was financed and the util-
ization Of the funds are OF especial in
terest to the United States. Substantial
ly all OF the money is to be used in pay
ment for the construction Of a railroad
from La Paz into the Yuncas Valley.
When this road is complete It win serve
greatly TO increase commerce between
Bolivia and the United States. One of
the richest regions in Bolivia, in fact
probably one of the richest in natural
resources in all South America, will be
opened up to commercial advantage
when transportation is made possible by
means of this railroad. II represents
really an investment of American money
in a very important constructive work in
South America The building of the rail-
road will serve still further to put an end
to the isolation of Bolivia, which Is an
interior country in South America, lying
east of Peru and Chile.
A Nation of Railroad Builders.
Some years ago Bolivia rejoiced in the
probability that great railroad construc-
ton would soon be under way, one line
extending from the capital to very rich
oil fields in Southeastern Bolivia That
project, however, fell through, chiefly be-
cause the promoters one of whom was a
prominent American citizen, suddenly dis
covered that the bankers of Europe were
already apprehensive lest war break out
in Europe, and for that reason did not
want further to expand their loans. In
spite of this disappointment, Bolivia has
undertaken railroad construction upon a
great scale. Much of It will represent the
investment of American money and sub
stantially all of the equipment will be
imported by Bolivia from the United
States.
A Very Wise Investment
When Bolivia and Brazil, in 1906 agreed
upon the terms OF settlement of the Acre
boundary dispute, Brazil agreed to pay
Bolivia 100000. This payment was
made through New York, and the entire
amount was deposited in New York banks
| to be drawn upon as Bolivia needed II in
payment of railroad construction. At that
time Gen. Pando, who was President of
Bolivia, persuaded the Brazilian govern
ment that there could be no wiser use
of the money than in payment for rail-
road construction and expansion. He
knew that all that Bolivia needed for the
develNment of her stupendous resources
was adequate transportation. The money
was so expended.
In speaking of this use of the money TO
Mr.. Wands recently, Gen. Ishmael
Monies, who is now President of Bolivia,
said that he had carefully studied the
| career of the late E. H. Hartman and
realized to some extent, at least, how vast
Mr. Harriman's achievements were, not
only in building up the Union Pacific
| railroads, but also in developing the far
Western section Of the United States. He
determined to make Mr.. Harriman's ex-
to his people, as Mr.. Hartman once said
that what a new or undeveloped country
needs is railroads, railroads and then
more railroads. Already it has been dis
covered in Bolivia that this view of Mr.
Hartman was correct.
President-EIect Part English,
In a few weeks the term of Gen.
Monies will end, but he is to be succeed
| ed by a man of remarkable ability as
well as soundness of judgment, who
until recently has been occupied solely
with his vocation as banker. He Is Don
Jose Gutierrez Guerra. He is as accom-
plished a man as is to be found in South
America. Upon his maternal side he
is Of English descent. He was educated
in economics and banking in London and
in Manchester, and he also qualified as
| a mining engineers. When he returned
| to Bolivia .he secured instant employ
ment with the Bolivia Mining Company.
i Later he became chief accountant of the
| national treasury, where he introduced
modern methods in fiscal accounting. The
municipal treasury of La Paz is now
| carried on in accordance with his ac-
counting system.
He has also been a writer on financial
subjects and had no idea of entering
actual politics until 1915 when he was
urged by all of the leaders of Bolivia
| 70 % in, 01E