Evening star., 1917-09-09

FNHE nitrate feet is the latest war
development. 1t is the govern
ment-chartered steamship line
to run between New York and
Valparaiso.
The line is established by the Emer-
gency Fleet Corporation. which has COM
nandeered from private shipyards five
vessels Of above 5000 tons each. The
company building the ships will op-
crate them under the government char
ter,7-but the shipping board will be in
control and the rates will be pre-
scribed by it. This Is in accordance
with other war measures such as fixing
the price of wheat and coal by the gov
ernment.
There is significance in the estab-
1ishment of this steamship line under
charter of the United States govern
inert. Primarily the purpose is to as
sure supply of nitrates from Chile
for war munitions. Secondarily, the
aim Is TO provide cargo space for
freight to the west coast of South
America. and thus relieve American
exporters of the lack of freight IA
cilities which has occurred on account
OF the diversion of the cargo carriers
10 Europe
The route will be through the Pan
ANA canal. since that is shorter by
several thousand miles than the route
through the Straits of Magellan and
the Atlantic II is 1000 miles from
New York to Panama and 5000 from
Panama to Valparaiso. Consequently
the round-trip voyage will be 10000
miles.
Since the United States has entered
the war with Germany the Chilean
feGnna
munitions resource for this country.
TIE Panama canal makes them readily
r.iiaDle.
Chile has monopoly of the natural
nitrate resources of the world. The
great desert which contains them
stretches for 900 miles along the coast
ii is absolutely barren of productive
ness for vegetation, but for forty years
II has been Chile's chief source of ma
tional wealth.
The nitrates have been considered
principally as food for the worlds agri-
culture, rather than food for NUM-
tions. hut this has been because until
the great war broke out the demand for
munitions was comparatively small. 1t
was estimated that about SIS per cent of
the product went into agriculture and
the remainder into munitions. Since
The beginning of the war the bulk of
the nitrates have been used for muni-
tions rather than for fertilizers
These nitrates of soda are known as
ealtpeter. Considered as saltpeter the
popular understanding Of their utility
Tor making munitions is better under
3odine. which, which. during the last
few years has been used SO extensively
sn surgery. and which has been given
ar added use during the war.
At the outbreak of the war, Chile suf-
fered severe economic depression be
cause of the interruption in the nitrate
trade. Germany had been a heavy
buyer, and that traffic was stopped en-
tirely Belgium also, which had bought
considerable quantities, ceased to be a
purchaser. and France, in the first
months. restricted her purchases in
stead of expanding them. France had
Gsed the nitrates almost entirely as fer
tDizer- England continued to buy, but
did not augment her purchases appre-
ciabiy.
In these circumstances the United
States came forward to relieve Chile's
Repression by becoming larger pur-
chaser. The quantity used for fertil-
Szers was not greatly Increased, because
Chilean nitrates were high-priced and
beyond the reach of the ordinary
American farmer. but the quantities
bought for munitions purposes were
greatly augmented. The principal
American powder-rnaking company had
acquired nitrate properties in order to
assure itself supply. 1t now took not
only its own output, but became
heavy buyer from other properties.
This situation has continued and Chile
has DeeH getting a very good price for
the ni.rates, while the government has
been enabled to collect the usual export
tax. which IS one of the main sources of
revenue.
The war has brought to the test some
questions regarding the value of these
natural nitrates as compared with arti-
ncii nitrates. Chile has had two