Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-01-14
DECLARES TREATY
DELAY HURTSU.S
Secretary Alexander Says For
eign Investments Are Being
Held UP by Politics
OPENINGS IN LATIN-AMERICA
BY the Associated Press

New York, Jan. 14.--Investment of
American capital in foreign countries is
being delayed by the failure of the
United States to ratify the peace treaty,
Secretary of Commerce Alexander de =
clared today in an address to the Amer :
lean Manufacturers Export Associa-
tion.
'If the peace treaty were ratified and
the league of nations in operation" be
eaid, American investors would have
greater confidence in putting their
money into foreign securities.
Regretting that the peace treaty
should be made the subject of political
debate at time when Europe'S 5 need
for political and economic stahilization
is acute, the secretary said: The United
States has assumed moral obligation
in foreign affairs which cannot be ig-
nored. The future of American in
dustry and commerce depends more than
ever before upon active participation in
foreign countries.
No immediate solution OF the prob
lem of European credits is in sight, Mr..
Alexander asserted, but financial aid for
the reconstruction of European coun-
tries must be extended by private Amer
lean investors and not by the govern
ment. "The government connot add
large assistance to other countries, he
said. "Such assistance as the United
States gives must be on a business
basis
Because of the limited amount of
capital available in Euronc, the United
States must be prepared to finance
large part of the development of the
resources and industries of the Latin
American republics, Mr.. Alexander
pointed out. But Investments in Latin
America should be confined to enter
prises that will in the shortest time pro
duce commodities most in demand IN
the world at the present, he stated.
As examples of enterprises best suit
able for the investment of American
capital, Mr.. Alexander suggested the
extension of railroads in the Republic
of Honduras which would open up large
areas of cattle producing country. y
railroad from Lake Nicaragua to the
Atlantic coast would develop rich dis
tricts in both Nicaragua and Salvador
he said, and extension of railroads in
southern Brazil into the state of Matto
Crosse would open up an area twice
as large as Texas, capable of support
ing immense herds of cattle.
Predicting an casing of the foreign
exchange situation because of the
marked tendency in recent months
toward increasing the imports into the
United States, the secretary asserted
that although viewed with alarm in
some quarters, larger imports may,
especially in so far as they tend to re-
lieve the foreign exchange situation,
have beneficial effect upon our foreign
trade as a whole.
1.-THE average monthly imports
amounted in round numbers to $3.50
600 900 in 1918 against $500 ,000, 900
in 1919 and in the last five months the
average has been $3.50 900, 900 per
month. The imports increased in the
last year at the rate of twenty five
per cent. while the gain in exports was
60 per cent.
'sImports from Europe increased by
1851 .000. 900 at the rate of 123 per
cent in 1919 over 1918. South Amer
lean imports increased only by S64.
600, 900. Brazil gained S124,000 900,
but Chile decreased $1,000, 900 and
Argentina S36. 1000 900. Sales to South
American countries increased by S136,-
oOO, 900 at the rate of 90 per cent in
the last year. Argentina and Brazil
showed q gain of over S5O,O0O,O00
each ~