Evening star. [volume] (Washington, D.C.) 1854-1972, 1921-01-02
BY BEN MeKELwAY.

can division Of the bureau Of
" foreign and domestic COM
merce see Q grave menace to
our trade relations with South
America in the proposed emergency
tariff, legislation. already passed by
the House and pending in the Senate.
Denying the wool and wheat growers
OF South America a market for their
goods in the United States will be
serious enough in its immediate re-
Election in the economic situation OF
some Of the South American repub-
lies. they declare, but the general
moral effect Of such a measure at this
time will be even more far-reaching.
During the year ended June 30, 1920.
our trade with South America, i'm
ports and exports included, totaled
$1.351.S88.47s. The balance against US
in South America was $370,000.121
and the adverse balance in Cuba was
$24S.s76,77s. We had q small favora-
Bile trade balance in Central America.
This shows clearly that a special ef-
fort at this time is required to
strengthen our export position. But
orders for American merchandise in
South America are being cancelled
due to q number of contributing
causes, not least among which Is the
renewed effort on the part Of Euro
pean exporters to strengthen their
market in South America. It must be
remembered that by racial origin,
customs and historical development
these countries Of South America are
much more closely bound to European
nations than to the United States. al
though mutually sympathetic I'M
Outstanding 10 growing between the
people of the northern and southern
continents of this hemisphere.
South American republics are
familiar through study with American
methods. They have become experts
on tariff. besides other things. and
according to the tone Of letters which
daily are being received at the De-
partment OF Commerce, South Ameri-
can countries are prepared to exact
in the way OF prohibitive
legislation for every tariff this coun-
try places on their export material
While Congress is striving to protect
the American farmer, the American
manufacturer. it is pointed out, bids
toner. loss he can i'll afford at this
time. The s. nth American is not
going to buy whore he is forbidden
to sell.
AS regards the immediate effect of
a prohibitive tariff on wool from such
and Uruguay. there has been a de-
creased demand since the war. both
in Europe and in the United States.
due largely to an overlooked market.
This has tended to aggravate the ex-
change depreciation and general eco
nomic situation in those countries,
and closing the door in America to
the wool exporters of South America
will cause further disruption, it is
stated.
Argentina's wool report for >the
year which closed in September
shows that 1910 tons Of wool were
sold this year. against $685. tons
be indicative of the present condition
in other wool-pr0ducing countries Of
South America.
Trade restrictions between Guate-
mala and the four other republics
Of Central America, which have been
in effect since 1885. have been aboi-
ished by a decree issued by President
Herrera, by and with the consent OF
the natIohdl ASScuhpAy "a oooee'ioAs.
The decree removes duties on all
merchandise. with the exception Of
LIQUOR and tobacco. which pass be-
tween Guatemala and her sister re-
publics. While Costa Rica has re-
moved import duties on manufac-
tured articles from other Central
American states, Guatemala is the
first of the republics to make such
sweeping changes in old established
laws. It is anticipated that other
Central American states will follow
tualiy all trade restrictions between
the Central American states will be
abolished.
Cuba, with the help Of the United
States. will emerge from her present
political and economic difficulties
on a sounder basis and with a clearer
conception of her best interests Tor
the future, according to her repre-
sentatives in Washington. and those
who would make 1t appear that SUE
pervision by the United States at this
time is necessary, are enemies TO
Cuban independence. In statement
ON the situation in Cuba. DR.. Carlos
de .Cespedes, Cuban minister to the
United States, asserts that reports Of
American Intervention are absurd
and nonsensical"
The Cuban congress will convene
within a short time. DR.. Cespedes DE.
clares. and legislation will be drafted
to meet the financial difficulties. The
economic situation, he says. is by no
means desperate. and with necessary
legislation Cuba will emerge from her
present difhculties with a knowledge
of how to. avoid a repetition by the