The New York herald., 1921-10-01
TRADE RECOVERING
In SOUTH AMERICA
Federal Reports Assert Gains
Of September Appear to
Be Permanent.

WASHINGTON, Sept. 3o.-Busines~
conditions in South America were
marked during September by steps to-
ward a recovery which were regarded
as having the earmarks Of permanency,
according to advices to the Department
of Commerce made public tonight. AS
an important feature I'm the improve
ment, agents Of the department cited
practically complete withdrawal of the
large amount Of general merchandise
which had accumulated in customs
houses. Slight Improvement in ex-
change conditions also had bearing
on the situation.
Although labor unrest was reported
as a disturbing factor in some locali-
ties. the departments summary viewed
the situation so hopefully as to sug-
gest that North American export
houses could make valuable use OF
their time by strengthening their ex-
port organization" The statement
added that exporters here should be
ready to handle efficiently the busi-
ness which they may properly expect"
from South America.
German competition was said to be
at work in Argentina. forcing lower
prices. Fewer statesmen from North
America were said to be in evidence
and little foreign investment capital en-
tering the country Greater stocks OF
exportable commodities were reported
on hand than there were a year ago
and exports OF hides and wool to Ger
many were increasing. Lower prices
for all raw products. however, were pre-
dicted.
The Brazilian market for chemicals,
iron and steel and electrical goods was
reported as showing continued improve
ment. The country's economic situation
has been materially steadicd by the in
creased demand for exportable COM
modities. il was added. Present crop
indications were said to be less than
earlier estimates. dry weather and cold
winds having caused growers much
concern. Construction work was de-
scribed as active in all lines.
More optimism was felt In the Chilean
situation than for considerable time. ac-
cording to Valparaiso advices, which
said the hope of consummation Of
deal between the United States and
Chile which would send greater ship
ments Of nitrate from Chilean ports pre-
vailed. Chile's financial crisis appeared
to be definitely passed, it was stated.
although her foreign trade was still at d
minimum. A general increase In the
prices of raw products was noted,> but
capital was confident, the adviceS auded.
A more favorable exchange situation
for Peru has been produced by the in
creased activity of the cotton market,
the reports said. adding that further
improvement in that direction was ex-
pected. The official estimate of the cot
ton crop was given as from 10 to Is per
cent. below that OF last year. with
notable increase in exportation. Pc
ruvian labor was said to be restless. al
though the situation was well in hand.
Wage reductions in several lines were
reported.
Mexican prices for cotton, sugar, sill
yer and the cheaper textiles ruled
higher in September than they did In
August, according to the review. which
noted slight but definite Improvement
in the general economic situation. bank
credits being easier and railway condi-
tions better. Demand for American
made goods was reported as light. al
though statesmen from north Of the Rio
Grande were said to be appearing in
increasing numbers.