The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-06-16

mercial transactions with this country
are deposited In the Federal Reserve
Bank Of New York, tine equivalent there
OF being put into circulation in PERU.
Before this agreement had been carried
out the Peruvian pound was quoted at n
premium over the American dollar.
The class of products which Peru exc
ports. the fact that the national debt IL
Of insignificant proportion and the cir
cumstanee that the revenue OF the coin-
try is constantly increasing, all these
factors constitute the surest guarantee
that can be furnished ms to the stability
of the monetary system, the most pow
erful stimulus for the investment OF for
eign capital. which IN Peru Is not ex-
posed to the risks consequent on fiuctua-
ton OF the currency. .
III the development Of its commerce IL
of the greatest Importance to Peru the
Investment of capital IN productive i'm
dertakihss is of still greater moment.
Few countries offer a better field for
remunefative investments than Peru. IT.
risstion. the building OF railways and
good roads as well as mining are espe-
cially to be recommended.
MiIIisn Acres Irrisabie.
Charles V. Sutton, a distinguished
engineer Of New York. who has lived In
Peru for some years. estimates the
easily irrigable area OF the coast at
100000 acres. Of which 12s,50o acres.
the same authority considers. are imme-
diately available for irrigation with prac-
ticably no trouble. The lowest estimate
10 $40 and the highest sos per acre for
irrigating this land.
1t should be remembered that arabic
land on the Peruvian coast increases In
value every day, 80 that II IL easy to
calculate the very productive investment
which irrigation constitutes in Peru.
Cotton and sugar cane, whose prices
have been SO much Increased owing to
the war. are products that have been 80
extensively grown that they nave taken
the place OF others the want of which
has made itself felt by consumers In my
country. with the corresponding rise In
price OF these commodities. nearly all
articles OF primary necessity.
With regard to railways IL Is enough
to state that the whole future OF Peru
10 bound up In construction Of railroads,
and that all those which have been
projected offer returns OF absolute Sc
cufity for the capital which may be in
vested in them. Several mining zones Of
great richness would be at once availa-
BILE by the construction OF a few hum
dred miles OF railway lines. To mention
coal alone. although Peru possesses i'm
mense layers In different regions in the
country. this article Is still imported
from abroad to complete the deficiency
Of home production.
A railway OF only fifteen miles,
branching from the one which starts
from the splendid port Of Chimbote.
would solve the problem OF coal supply
sufficient for the needs OF all the re-
public and would initiate an era of do.
ma 10
value.
The petroleum industry In Peru Is
another extremely profitable opening
for foreign capital. The very rich dis
trict of Talara, at the extreme north OF
the republic, is not the only one which
could furnish abundance of mineral oil.
Talara itself is capable of further de-
velopmeht through the establishment OF
other companies In that region.
American Capital Welcome.
II Is unnecessary to state that Peru
considers the investment OF American
capital with the warmest interest. A
proof Of this Is furnished by the Cerro
de Pasco Copper Corporation, which has
obtained brilliant returns on Its invest
ments and which IL at present consider
ably increasing It's capital so as to
enlarge its smelling plants.
The wonderful results obtained by this
company are outlined in a report, re-
Gently published, which gives the gross
income from the site OF metals in 1918
as being t12,Bs7. 900, and dividends paid
totalling s4.Ss3, 900. 1t has been proved
besides that the Cerro de Pasco Copper
Corporation can be considered one of the
lowest cost producers OF copper in the
industry, the company being able to
any producer and lower than many OF
them.
II Is unnecessary at this time to
deal at length with the Importance OF
sea transportation for the development
Of commerce and industry. This problem
fortunately Is one which holds the hap
biest .augury for Peru, which, in addi-
tlon TO It's own feet OF steamships, those
Of the Peruvian Steamship Company,
notes with much satisfaction the addi-
tons made to existing lines and the
bringing into service OF new ones. such
a. that which w. n. Grace q Co. con-
template establishing. with New Orleans
as the home port In the United States
have only to add, gentlemen, while
thanking you for your attention to these
brief remarks, that the Peruvian repre-
sentatives to this conference Will give
every attention to such questions as
may be addressed to them on all mat
tiers which may lead to the better I'M
derstanding of the conditions of the
country. from the standpoint OF the de-
velopment OF Its commerce and specially
as regards the investment OF capit.E
In Peru.
The Peruvian representatives will be
very happy to furnish all possible data
on such matters.