The Washington herald., 1919-09-02
SOUTH AMERICAN
BUSINESS BOOMS
u. S. Trade Grew Billion
Dollars During War,
Says Holland.

In little over a year there will be
assembled at Washington men Of in
huence who represent South Ameri-
can nations, and who will meet men
Of Ike standing IN the United States.
It is to be another Pan American Con-
ference, and presumably from its de-
Hberations and recommendations there
will be established increased interna-
tional commerce between the United
States and the continent to the south
OF Us.
What that increase may : can only
be inferred from the unexpected and
wonderful increase IN our commercial
relations with South America, and in
fact all the Latin-American nations,
including Cuba. which has taken place
within the past three or four years.
So sensational dramatic and tragic
were the events which characterized
the European war that this unex
pected increase in our commerce with
South America was scarcely noticed
There was statistical reference to II
in the reports from Washington, and
occasionally attention was called to
u when South American nations ap-
preached the money markets Of the
United States for the purpose Of Sc
curing loans.
Yet in its way II Is relatively un-
paralleled- and is absolutely very
great. In the fiscal year which ended
on Monday Of last week, the expan-
sion OF trade between the United
States and The Lstin-AmeriCan coun-
tries was in excess, in money-value,
OF our international trade with these
countries before the European war be-
gan by approximately $1,000 .OOO, 300. In
the fiscal year which ended on June
80, 1914. our international trade with
Latin America was in the aggregate
OF the money-value of seven hundred
and fifty millions.
In the fiscal year just ended on
June " the money value OF that trade
was somewhat in excess of s1.75O. OO0,-
90. These figures are in part esti-
mated, but they are to be believed
substantially correct.
In the previous fiscal year which
began on July l. 1917. the value OF
our exports to South America was
considerably greater than the money
valUe OF our imports.
American nations were compelled af-
ter Europe was at war to come TO the
United States to purchase commodities
in large amounts. some of which they
were in desperate need. Before the
European war began the greater part
of commodities OF this kind was pur-
chased i'm England and the continent
Of Europe.
l. is. however. essential that the
United States do not increase its
exports in South America without
at the same time increasing our
imports. We are already sending
gold to South America and pre-
sumably within the next year will
export a good many millions more.
This will serve to facilitate trade
relations. especially in view of the
fact II Is now clearly established
that trade is strongly disposed to
follow the loans.
American capital must and IN
doubtedly will flow into South
America until at last many hum
dred millions are invested there No
small part of this capital will be
employed in railroad construction
Adequate transportation is one of
the chief needs Of South America If
her resources are TO be we'll dLvc-
loped
This is especially true Of the in
terror and Of such nations as Bolivia
and Brazil. There was a strong
tendency towards enlarged raIlrUal
construction in South America I'm
til about a year before Gerna ny
began her march towards France
and Belgium. Then that constrUc-
ton was checked The French
bankers who were able to see far
ahead and some OF the English
bankers were unwilling to extend
further credits giving as a plausible
excuse, now realized to have been
d sound ore, that the apprehension
OF general European war was 50
great as to make it unwisc TO grant
loans or advances, secured by rail-
road bonds or stocks in South Amer
ica.
In addition to the investment OF
American capital in railway con-
struction and the exploiting Of some
Of the very rich natural resources of
South America. almost all of which
have been untouched. it will be nee
essary for the United States to fur
nish ample credit facilities. We are
already learning that it is upon the
utilizst ton Of credit that the great
endeavors which are now under way
are made possible. and the future
endeavors. Of which there are to be
so many. will be financed. South
America stands in need of large
credit facilities. That is true OF
both the nations Of that continent.
and also of private enterprises, cor