The New York herald., 1920-12-06
BrazIi's Amazing Expansion.

Just as reconstruction Is bringing
closer the actual measurement In
terms of money of the property de-
struction in Europe, so the progress
of defIatlon has set out in boiu relief
the dramatic period of industrial de-
velopment in other parts Of the worl,.
as an incident of the war. Not merely
the United States and the Far Eas;
show how modern war galvanizes the
whole world into feverish activity
there are others.
1t Is to Brazil, on the South Ameri-
can continent that history probably
will concede the pre-eminent place as
an exhibit of what a war thousands OF
miles away and on another continent
can force nation to do. even though
that nation previously had beea
thought to lack initiative, full blown
commercial and Industrial experience
and capital.
Brazil has territory of $500, 900
square miles, larger than the United
States excluding Alaska, but the pop
ulation is only one-quarter as great
as ours. In 1918 Brazil was de-
pendent largely on Great Britain and
the United States for manufactured
articles. In return she exported raw
materials. Unlike the United States.
and the Far East. she gained nothing
In foreign trade from the war. In
1913 her imports were S32G, 200
and her exports 1913, 100000. In 1913
her imports were $247 1851 900 and
her exports $685., ,275, 900, with prices
higher all around, which mace the
shrlnkage in the volume Of her for
eign trade much greater than the,
shrinkage In price. But Brazil gained
favorable balance Of trade.
The change which came over Brazi.
was principally internal. Uuable,s on
account Of England's pieoeautation IN
the war and to the lack OF ocean tom
mage, to obtain manufactures from
abroad, Brazil set to work to satisfy
her own needs. Cotton had been
raised and used by the natives before
the discovery Of the country by Eu-
ropeans. Yet at the outbreak Of the
war the rel,ublic obtained most Of
its cotton goods from England In
the xxincipal manufacturing state of
Sac PauIo in 1913 the imports of
cotton goods amounted TO S2,0ooooo
and the domestic manufactures TO
so, 100000. In 1918 imports stood at
SO, 75O, 900, but manufactures Of cotton
for home consumption amounted to
more than s25,000,o00.
This increase of ten to twelve times
in domestic production held true In
many manufactured commodities. In
the first three years of the war official
reports show that TOO new factories
were established, 32S in Sao Paulo
alone, to produce chemicals, furniture,
paper, leather goods, machinery, toys
mud almost every other conceivable
necessary OF civilization, goods which
Brazil had obtained previously By I'm
portation. The report setting forth
Brazll's industrial development goes
into exhaustive details which leave
no doubt that the whole economic
structure Of that country has under
gone 2 drastic change. These trans
formations were evident at the tin'e
fhey took place, but what thcy actu-
ally meant was not fully grasped while
the plants were all engaged in produc-
tioa 10 meet demand. Now that re-
action has oyertaken Brazil she, like
her contemporaries. can contemplate In
ne epgd clear light of right perspee-
sise fhat almost magic period of ex-
peassou and the responsibilities 1t has
brcught 10 her peopie and 10 the
Government.
Brazil has more factories and a
larger manufacturing capacity than
all other South American countries
combined. Rich In natural resources
and only at tie threshold Of develop
ment. Brazil has II within her power
TO become one Of the leading conf
mercial nations OF the world.
IiecbfeusteIu's Future.