The Birmingham age-herald., 1919-03-06
AFTER THE WAR

Now it is announced that within nearly four months after the armis- tice was signed, the French bankers have seen their way clear towards f; nancing the reorganization of the great Brazilian national railroad system. This alone indicates that French finan- cial leaders feel sure of the future, not withstanding the enormous obligations which France must liquidate or fund
 into some permanent investment form. It was announced a day or two ago that the French bankers through a syndi- cate operation have advanced $4,000.- 0c0. the purpose of which Is to enable the Brazilian national railroad system to be perfectly reorganized and to be put in position to meet the expected great international trade which Brazil will establish not only with France, but also with the United States
 As France and England acted jointly. nledging the resources and credit of both nations to protect a loan of $500,- 000000 which was made by American
 bankers in 1915. the first of the great loans. so now France and England are acting jointly for the purpose of put
 ting the national Brazilian railroad
 system into excellent condition.
 Among the interallied lines which are a part of the Brazilian railroad system
 Is the Madiera- -Mamore railroad, 226
 miles in length. This is in the heart of South America and is the identical
 railroad proposition which American
 engineers and men of science set out
 some 30 years ago to construct. It was
 proposed to build a railroad from the
 upper waters of the Amazon around
 the falls and rapids to point upon
 one of the navigable rivers of Bolivia
 This would facilitate the development of enormous traffic from the interior
 of South America to tidewater upon the Atlantic coast. This expedition
 was a failure because science had not
 shown how to master tropical dis eases. Many of the members of the expedition died and others were almost
 wrecked in health. Afterwards Brazil
 and Bolivia entered into agreement, backed by English capital which re. suited in the completion of this rail- road
 This new financing for the benefit of the Brazilian railroad systems will doubtless prove to be of great benefit to the United States. The war pre- vented Brazil from securing equipment and new rolling stock. and especially a large amount of steel rails which were needed if the railroads were to operate at all or at least under the most unfavorable conditions. The rail- road situation there. and other causes prevented the development of inter- tional trade and also prevented a con templated advance by American in- dustrial leaders in Brazil
 Now that the railroads are to be put into excellent condition and to be thoroughly reorganized, Brazil will doubtless approach the markets of the United States for the purpose of buying steel rails. many thousand freight cars and other equipment. Neither France or England can at this time or for 3 year or two furnish the needed equip ment in any considerable amount. but the United States can. Ultimately no doubt English and French influence in Brazil will tend greatly to increase Brazils commerce with thase nations and will make it all the more neces sary for the United States to be pre- pared for the inevitable competition for fha tra da of Rrazil