Evening star., 1921-10-16
A NEW REPUBLIC IN
FAMILY OF NATIONS
Union of Three Central American States
Becomes Effective. With Two
More to Join.

should join the union. and they are
both invited to become members Of
the new republic.
!: y x x
Comment here on the loan of New
York bankers to Argentina of $50.
100000 and the reported negotiations
for another loan of equal amount, all
comes down to the point that until
American financial interests think of
South American republics as poten-
tialities rather than realities the
benefit of loans is going to be lost.
This does not mean that Americans
who invest in these loans will not
benefit. South American republics
have always made it a point to meet
their International obligations. But
IL does mean that South American
republics who borrow money in this
country will be given only temporary
relief from a situation that will re
main. permanent for many years to
come.
Investment. and not loans, is what
those interested in South America
have been preaching. 1t has been
the practice Of American bankers to
loan only on sound security and at
rate of interest that pays them well
for their venture. which is good
business. but lacking in vision.
American interests might profit
from the example of British and Ger
man DduhlUS houses tTe wat.
Their policy has been to finance de-
velopment by their own people i'll
South America; to furnish 4 per
manent stimulus TO industry which
will give it's returns for many years
afterward and at the same time
create new business and new markets
for their exporters.
South American representatives in
Washington are making efforts To
interest American financial interests
in this form of investment There
are several negotiations now under
way. the nature of which. if published.
might ruin the prospects for their
realization. But roughly described il
means that several South American
republics now invite American CAPT
talists TO come in and virtually tax.
over the country's industries and
reap therefrom the greater percentage
of return. Their object is TO Great"
now industry and new business which
will put them on L basis of self sup
port. Borrowing means only tenn
porary relief. while securing Ameri-
can investment means tie road I"
| permanent recovery and prosperity.
:: !: = ::
| In recent bids for the construction
! of a highway bridge over a certain
| river in Argentina there were min"
! German firms and two Belgian com
! panies entered While no American
concern bid. a representative of an
| American construction company said
the lowest price he could quote was
more than three times the lowest
! German figure.
! Another instance of how Germans
are undertaking the representatives
Of American firms comes from Monte
video. uruguay, in a report to tn"
Department Of Commerce. 1t is said
the post Office department of Uruguay
was prepared to give the contract for
certain construction work to an
American firm. The contract in
volved loan of s7.500,000. The Uru-
guayan government, however. has
| been prevailed upon by German
! firm TO hold up the contract until il
can submit bids, which, il asserts, will
be much lower than those offered by
the American company.
* X x
Secretary of State Hughes has been
| made an honorary member of the ad.
! visory board of the Gorgas Memorial
! Institute, to be located in Panama.
Former Surgeon General of the
Navy Braisted. in requesting the Sec
! retary's membership on this board
characterized the creation of the
manitarian step yet taken toward the
development of Latin America and
gave as his opinion that the work OF
the memorial wonld be the most fit
, ting trlbule 10 man whose Lie was
identified with the work of fighting
diseases of the tropics.
The first formal meeting OF ths
/ board of trustees of the memorial
will he held in Philadelphia the 2Sth
of this month. Bylaws of the insti-
=. tuition will be adopted, the permanent
| personnel of the governing board sc
F! lected and plans discussed for rais-
| ing funds for the institutions main
t6nanCe.
:: = :: ::
Announcement of the personnel of
the Bolivian legation staff probably
will be made within the near future
1t is understood the staff has been
appointed and will reach Washing
ton soon. At present Bolivia is rep
resented here only by the minister.
DR.. Adolfo Ballivian.