The sun., 1919-06-30
A, A. Preeiado Points Out Way
for United States to In
crease Trade.
GOOD INVESTMENTS OPEN
European Countries Enjoy
Many Advantages Through
Making Loans Freely.
BY A. A. PRECIADo.


fornia the mountaineer woodsman
would drop down into the valley at the
approach of each winter with q load OF
wood for sale to the dealers. Instead
OF returning to his mountain home with
Ian empty wagon the mountaineer teamed
hack a wagon load Of provisions that
would serve as his winters supply.
These provisions were bought out OF the
money he received from his wood. This
transaction continues from year to year
with clocklike regularity. The people
in the valley must have their wood the
mountaineer must have his -four and
coffee and esugar. 1t is an exchange
that benefits all parties to the trans
action.
Now suppose the woodsman, after SELL
1 ing his wood at one place. drove his
team to another point further UP the
svalley to purchase his supplies. This
/ would involve travel with an empty
& 1 wagon and the loss of considerable time
and In time the loss of the patronage OF
the dealers Of the first city.
Ordinarily the same principle Is In
xoived in export trade to South
America. Each year we ship millions
of dollars worth of manufactured
articles to the various countries or the
Southern continent and theoretically our
ships should return with q full cargo In
order to maintain a trade balance that
would Justify future growth OF COM
merce. We cannot AFFORD to have an ex-
cessive favorable trade balance IL We
| wish to encourage purchases in our
home market. An excessive favorable
trado balance ordinarily raises the cost
OF dollar exchange.
Must Buy to Hold Market.
The quality OF American manufac-
lures, the punctual shipment of orders
| 4 A. % xA.il
surely produce a favorable impression in
south America and justify the absorp-
ton OF a tremendous amount of busi-
ness, but in view of the success OF other
nations along different lines in the same
territory II seems that the American
business men must do more than sell
goods and collect money from their
foreign customers This statement re-
fsrs to the necessity Of foreign invest
ments. We must not only sell, but we
must buy as WELL whether 1t be mer-
lchandise or securities.
III The most successful exporting nation
lin the world before the war-Great
Britain-built up her gigantic traffic in
merchandise over the foundation OF
foreign investments. The United King
dom before the war always kept bill
lion dollars in reserve ready to rush to
the assistance of some country needing
cash for internal improvements or other
enterprises. There isn't country In
South America where British capital has
failed to obtain representation in some
form or other. Why has Great Britain
maintained its great trade with the
Argentine Republic? When II Is known
that the United Kingdom has invested
i lover $4,000, 000, 900 in Argentine alone
the answer should be simple. England's
railroad investments alone amounted to
1 $500. 000. 900. The advantages in foreign
investments may be seen from the fol-
lowing figures showing Argentine's pur-
chases from England and the United
States for four years:
United KIin,gdom-,u, ,.,, ,.,s
500 ss7 s11 800. 1924 .is4s72o21 1l5s755 COZ
~ 2s,sst's"9 .a,sssess ss,a2.sss 1ls4ss. IS,
This is due largely to England's for
eign investments. The railroads. port
works and the great number OF enter
prises In which British capital was in.
vested-all required supplies from time
to time. These supplies were purchased
In the country from whence the capital
was obtained.
German Capital Also Active.
Not alone in Argentine has Great
Britain made large investments. In th'
Republic OF Chile one will find indus
trial development in many lines encour
aged by the British pound sterling. Tel
II ttpHOHc ~ eltliiS III many t1LkfS dIc CUT
trolled by British capital. Where d.
the supplies for these industrial enter
\ prise generally come from? From Eng
a land
Germany's establishment OF brancl
A hanks in South America was merel,
the forerunner to the investment of cap
lital In enterprises, German capital be
fore the war financed hundreds of en-
lterprises. This served as the seed on
A of which grew that tremendous Soutl
n American trade for the once powerful
German empire.
Before the war the French held Ar
igentine securities to the amount OF near
\ ly $300.000.000. 1t was French capita
n that operated the tramways and cleo
trio service OF Buenos Aires. Three O
A the great railways were PRACTICAL,
owned by French capital. French en-
A sgineers under the guidance of Frencl
capital constructed some OF the princi
y pal ports OF that country. Her invest
Nments extended to agriculture and stool
raising and TO the grape industry IL
Mendoza at the foot of the Andes
With the financial condition of Europ
producing a delicate throb at the pres
. ent time, It Is doubtful II capital fror
that continent will be able to pour int
South America with the freedom tina
\ r. characterized it's pre-war activities
Germany Is helpless for the present
France must conserve her resources an
England must follow a similar course
II The United States to-day Is in a positio
II 10 extend financial assistance whereye
#NShe nature Of the enterprise justfles
SHE investment. Not only South Amer
ica, hut the entire world is looking to u
\ to-day with the deepest interest In GU
programme of financial extensions
~ In South America alone there are un
limited opportunities for development O
lakewood sections with American can
,ital. The potential riches OF Ecuado
for instance, lie Dormant for the lack O
money to bring out the most valuabl
that Is In them. Ecuador needs raj
roads, improved harbor facilities, I'm
provements such as the development c
water power and the construction Q
highways.
In Peru American capital can fin
considerable work to do. Peru's wealt
IN. mineral resources are practically vi
n known. Her mining industry needs de
rslopment. Irrigation systems must b
constructed in order to place her agricu
ture on a solid basis. Peru, like othe
A countries on the west coast needs raj
road extensions to tap rich sections q
4 the present time inaccessible for oil
binary commercial purposes. Peru
rich In water falls. whose water pows
II needed to aid the country's infaI
A manufacturing Industries Not only
The country rich in minerals and agr
"A culture. but her timber resources ar
4 practically untouched. In the north an