The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-07-14
GERMANY AIMS TO REGAIN
HOLD IN SOUTH AMERICA
Commercial Interests of United States Enjoy Only
Temporary Advantage Old and Eff
fcient Organization Practically Intact.
BY F. EUGENE ACKERMAN.
Formerly Director Bureau Of Latin
American Affairs Committee on
Public Information

BY r. EUGENE ACKERMAN.
Formerly Director Bureau Of Latin
American Affairs Committee on
Public Information.
The economic readjustment that Is to
determine permanently the future trade
relations between the republics Of South
America and the great commercial ma
tons OF the world Is now under way.
The peace terms have been signed and
Great Britain. France, Germany and the
United States are we'll advanced in their
effort to establish themselves perma-
'nently and with mutual profit in this
much desired market.
There is every indication that Ger
many Is determined to regain and ex-
tend her commercial strength in South
America. Despite Eve years of restric-
tions imposed by enemy nations which
controlled all sources of supply, and,
above all, held the mastery of the seas,
her ramifled organizations on the con-
unent to the south of US are In a thriv-
Ing condition.
Continued disorder in Germany. with
the consequent paralysis Of her Indus
trial life, will OF course check her pro-
gramme, but 1t 10 doubtful II II will en-
tirely destroy the carefully woven COM
mercial fabric. 1t is significant to note
that the representatives OF German in
terests In South America are working in
accord with the 'Socialistic' Govern
ment at home. Tho banking houses and
their interviewer ENTERPRISES are bestr-
ring themselves to new activity, and
statesmen are taking up their old routes,
accepting orders and guaranteeing deliv-
cries within specified periods.
or course this procedure may be char
acterized as a gigantic blum, but IL is
merely step in carefully wrought out
plan that began more than year ago.
Almost from the day war was declared
Germany began TO cast about for new
sources OF supply for raw material. and
1t Is evident that she determined on
South America as this base-in the
event OF possible defeat Shut of from
their ordinary enterprises the German
organizations Immediately began to ex-
tend their domestic connections.
They have bought and sold vast guam
titles Of raw materials and In many
cases have sold them either directly or
Indirectly to the Allies. Owing to the
tremendous demand for these products
they made handsome profits But more
important than this is the fact that they
did not always sell after buying. They
stored enormous amounts of raw mate
rails in warehouses, either at the sea-
board or adjacent to IT Those materials
and they include many of the products
that are needed TO supply her factories.
Vast Holdings by Germans.
Scattered about South America, in the
hands Of German exporters, are quaint.
ties of cotton, wool, manganese. vegeta-
BILE fbres, hides, sugar. fertilizer. wheat,
maize, barley. linseed and miscellaneous
food products. And in the State OF MI
mas Geraee. In Brazil. German interests
have holdings in immense iron deposits,
which as yet are undeveloped. but which
experts claim represent some of The
richest iron mines in the world.
In the Amazon Valley. in the ports OF
Para, Ceara, Parahyba. Maranhao and
Pernambuco, the German exporting firms
have been storing cotton. sugar. copra
rubber. vegetable oils. fibres and other
tropical products in tremendous quanti-
ties during the last two years. The firm
of Herm, Stolz & Co, with warehouses
all over Brazil, holds thousands of tons
OF material ready for shipment In the
Argentine the big German export houses
aided by the banks, have stored quanti-
ties of wool, wheat and hides. as we'll as
quebracho root, necessary for tanning.
They control the sugar industry in GER
tain parts OF the country, and are devel-
-
district, in the northern part Of the coun-
try.
In Chile the Gildemeister group. which
extends its interests into Peru, have ore
holdings. including copper. silver and
gold. They own nitrate fields with fully
equipped ofcinas. or factories. for re-
ducing the salltre. In Peru this same
group controls the biggest sugar hacien-
das In the country. Besides this they
own copper mines and many nerchan-
dising stores. In Peru. Bolivia, Ecuador
and Venezuela this same condition Is re-
peated. In Paraguay the Germans have
estancias thick with cattle.
In Brazil, Argentina and Chile. par
ticularly. there are large and powerful
German colonies that have their own
cities-and their own type Of German
'Kultur." The German merchant and
the neutral merchant, who Is a German
mpathi1er. are scattered throughout
the continent, even to the utmost re-
cessea
German interests control many South
American public utilities. In the Ar
gentine they own the chief electric light
and power plant and the street railway
system In Buenos Ayres. They own
also tho traction and power systems in
Rosario and other big Argentine cities.
In Chile they control tho traction syr-
TENS in many of the thriving centres
including Santiago, and the same is true
in Peru. Bolivia. Brazil and other re-
publlcs.
Power of German Banks.
The German banks are power in
Argentina: not 80 long ago one German