The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-03-17
LATIN AMERICAN
TRADE ANALYZED
Main Basis of Southern CONT
:. nent's Buying Power Lies
in Raw Products.
u. 9. MUST ABSORB THEM
Growth of Commerce Will De-
pend on Stimulation of
Production.
%. g. MUST ABSORB THEN

The main basis Of tho purcha sing
power OF the South American nations In
the United States Ia contained In a
relatively small number, a half dozen
perhaps, OF raw materials exported from
the lower continent to the upper. For
that reason the development OF trade
between these two great units which
compose the western hemisphere de-
ponds largely upon the ability of the
tity OF these raw products than she has
heretofore done.
Dollar credits. advertising. shipping
facilities and other measures designed to
give aid in the trade situation will play
a large part in this increase Of trade that
most exporters are anticipating with
confidence. but the basic factor, in II o
opinion of A. H Baldwin, assistant
manager OF the foreign trade bureau OF
the Guaranty Trust Company, will re-
main Just what 1t has been in the past !:
that is. the buying power OF the people
, TO whom the United States wants to sell
The chief products received from
South America are coffee, hides and
ea<ins, copper, wool. rubber and nitrate of
ooda- Other commodities which we buy
in large quantities are sugar. cocoa, furs.
tin, manganese. tungsten. beans, vege-
table ivory, quebracho and platinum.
south Americas Main Asset.
This list, numbering fewer than
twenty articles" Mr.. Baldwin said.
/, CONSTITUTES South Americas main asset
in trade with u.s. and forms the basis Of
. her permanent purchasing power in the
Omitted States We can look for little
change In this situation, as there Is no
likelihood that there will come any great
; development OF manufactures in Latin
, America for long period. because Of
the lack of fuel resources and industrial
. skill
/, Therefore, any growth OF trade and
wealth will depend upon a stimulation
: of production and use Of these few staple
Z commodities As production develops we
may look for better markets for our ex-
. ports to our southern neighbors
That our demand for coffee, hides,
wool, rubber, SC, will continue to grow
. il certain, and we should have in mind
bending our efforts toward the establish
I. ment of such interchange OF trade as
. will tend TO balance our mutual pur-
chsses more than Is now the case. We
DO not always get all the benefit We
should as good customers.
Coffee as An Example.
For instance, we are the greatest
: largest single export to US from any
: South American country. Brazil sent
. us ss6,0oo.o00 worth On 1917, but 1t Is
: certain that much OF the money she re-
: ceived for this coffee was spent in
countries other than the United States
for payment for the coffee We
had bought were largely drawn on
London by the exporters. and the credits
thus established there were no doubt
expended there as we'll
"As eood,custorners we can reasonably
ask that the Brazilian exporter of coffee
use more dollar exchange, which will
tend at least toward the expenditure of
more OF these credits with our own ex-
porters. No doubt when prohibition
goes into effect we will drink more coffee
than we do now. and we ought to proit
by this growth OF our market through
Increased exports to Brazil and Ven
exuela both.
I'VE are among the greatest consum-
ers Of leather products also. and the
demands OF a nation of 100000 per-
sons, always increasing in population.
will force us to look southwark for raw
material which the herds OF cattle, sheep
and goats of all the Latin American
countries must help furnish. Our great
automobile industry alone will require
rubber to tax the worlds supply"