Evening star., 1921-08-21
BY BEN M'KELWAY.

American or Euro
pean, seems to be the most
practical medicine suggested
for South American economic
ills these days. Certain it is that,
capital used in the right way as
a restorative rather than a paIlia-
tive tonic. would do a great deal to-
ward putting some of the southern
republics on their feet and starting
them toward recovery. But the ques-
tion. not a new problem, is how to
get it.
| There's lot of interest in South
tional Bank. capitalized at $780,
100000. provided for in a bill now
pending in the Senate. Such an
agency would provide loans, it is
pointed out. which would have the
needed effect of stimulating COM
merce for Americans with South
America and at the same time create
| business for South Americans
| Bolivia right now is suffering a de-
preston which is characteristic of
drastic remedy is needed to pull her
! through DR.. Adolfo Ballivian, Bo-
| livian minister to the United States,
has worked out plan for restoring
normal conditions in his country, but
| he has been unable to proceed with
its development pending official ap-
proval from his government. Briefly
! stated. 1t amounts to this:
! The minister hopes to obtain from
a group of bankers (under one direct
| ing headD loan of approximately
$22,000,0G0. Part of this sum-a COM
parativeIy small part-would be put
to immediate use in meeting the
Bolivian governments domestic obli-
gations-payment of employees sala-
| ries, army maintenance, etc. The rest
of the money would be expended in
development of the country-railroad
construction. mine development and
| research. The revenue resulting from
these steps would be given as Sc
| curity. the government reserving in
| all cases the rights of ownership in
| whatever project is undertaken.
In other words. this group of
| American bankers would take over
Bolivia's financial o3ligations until
she becomes self-supporting. There
! is wealth in Bolivia. it is explained.
but it takes money to bring it to the
surface Bolivia lacks the money.
| The Brazilian government is about
! to undertake reclamation project
comparable only to work of similar
| sort begun by the United States gov
ernment in 1903. The New York firm
1 :"
retained by Brazil to supervise a
large amount of the work. The
| project will include the construction
of five large dams-involving nearly
a million cubic yards of concrete-to
| create storage reservoirs, some of
! which are to be the largest ever
built The work will be undertaken
| in the states of Ceara and Parahyba.
In these semi-arid states in Brazil
there is an average yearly rainfall of
| about thirty inches, which, If properly
distributed, would make. even under
| the tropical sun. a sufficient supply of
moisture to produce moderate crops.
The climate consists of a dry and
rainy season, however, and practi-
caliy all of the rain occurs during
this rainy season. During the sum-
mer months the soil is not moistened
sufficiently and severe droughts re-
suit, which reduce the inhabitants OF
the section to a point approaching
famine and starvation.
1 The region to be benefited will
have the climatic possibilities of Ari-
zona and California or the irrigated
section of the west coast of Mexico
The products of the country are cot
ton, sugar, palms and palm oils. cit
lrous fruit and other subtropical
plants.
DR.. Miguel Arronjado Bisboa, as in.
spector general, will have supervision
| of the work. President Pessoa OF
Brazil has given the project the same