Evening star., 1920-02-08

abroad. They learned to depend on
homemade products. and they have
piled up vast sums of ready money.
Most of the larger countries of Latin
America have developed manufactur-
ing industries and have attained a
higher degree of economic self-suf :
fciency. American exporters plan
ming for trade development must take
this into consideration.
The demand for foreign capital in
the refundins of government loans
and the extension of industries in
most of the Latin American republics
is quite heavy, the Latin American di-
vision OF the bureau of foreign and
domestic commerce says. This is due
10 the fact that most of them are still
IN the early stages of their economic
development along modern lines The
fnanciers of most of these countries
realize that the present time is not
most opportune for the borrowing of
large sums. since interest rates in the
leading financial centerS are abnor-
mally high. and the demands of capi-
tai In Europe are much more urgent.
The Latin American Industrial pro-
5ectors. therefore, would restrict their
borrowings to funds urgently needed
for the refunding of their foreign
loans and those most necessary for
maintenance and extension of rail-
roads. ports and highways.
In development of their resources
the Latin American countries are in
particularly receptive
American mood for American capi-
Money. .al Considering Co sid the short
able capital, and the urgent demands
on it for the rehabilitation of Europe,
government officials whose advice has
been sought regarding the amount
that might properly be invested in
Latin America at this time suggest
this principles:
Investment should be restricted as
far as possible to those enterprises
which will produce the goods most in
demand in the world at the present
time and will produce those goods in
the shortest time possible. From this
point of view investment in railroads
and highways that will open up large
productive areas of land suitable for
cattle or sheep raising, cotton and
other textile fbers, sugar, cocoa, etc,
would be most desirable. Encourage
ment is also given particularly to
investments in railroads and high
lively short time mining regions rich
in gold, silver and other important
and useful metals, as well as regions
producing timber.
Those who have studied the situation
most closely say that especially meri-
torious is the investment
HOuduran of funds in the extension
of railroads in the re-
AA"oys' public of Honduras. be-
cause they would make accessible
large areas now comparatively unde-
veloped, capable of producing immense
numbers of cattle. The building of a
railroad in Nicaragua is also advocated.
from Lake Nicaragua to the Atlantic
coast. This would open up an unde-
veloped and exceedingly rich district.
In southern Brazil, it is urged that the
extension of railroads into the great
state of Matto Crosse would open up
an area at least twice the size of
Texas which can support immense
herds of cattle.
On account of the limited amount of
capital in Europe available for loans
to and Investments in Latin America,
the United States must be prepared to
finance a large part of the financial
requirements of these countries. This
was emphasized in the meetings of the
second pan-American financial congress
recently held here.
Secretary Alexander lays particular
stress on the fact that the f1nanciers
and bankers of the United States in
meeting these new demands for capital
foreign trade of this country. He in
sists that all should appreciate that the
profit to the bankers will be small in
comparison to the advantage that will
accrue to American industries, for the
capital investment in Latin America.
he insists, will go out very largely in
the form of goods, in locomotives, rails
and in machinery and commodities of
all sorts.
Such investment. he believes. would
buttress the United States trade in
Latin America and
Latin American would help to main
o.. tain our position in
0ecuI1tIeS. that m p o + a n
commerce. In this connection he re-
minds the people of the United States
that the time is soon coming when
they must be prepared to buy Latin
American securities much more free
ly than they have been accustomed
to do.
With the American merchant ma
rine becoming a powerful instrument
in extending the foreign trade OF the
United States, if the American peo-
pie are to retain their present hlgn
position in world finance and trade II
is important that there should be no
serious showdown in our industries.
whether agriculture. mining or manu-
featuring. The annual surplus OF
these industries must find ready out
let to and ready sale in foreign mar
kets. This is the reason that the
Department Of Commerce and the
shipping board, cooperating with
other government establishments,
have redrawn the trade map OF the
world SO as to determine the most eff
ficient trade routes to be maintained
to every part of the world.
The Department of Commerce Is ad-
vising with the shipping board as to
the needs Of American trade for i'm
proving service on different trade
routes and particularly to the east
and west coasts Of South America and
the far east WILL r, KENNEDY.