New-York tribune., 1921-12-25
Colombia Seeks
u. S. Capital for
Railroad Scheme

Especial Foreion Financial Correspondence J
bOGOTA, Colombia, Dec 24.-The
stagnancy which is for the present
characteristic of political affairs in Co.
!omola, where the government was re-
Gently for more than two weeks with
out ministry, is reflected in the un
eventful state of business now obtain
ing here, the degree of which can be
gauged by a statement recently made
at an informal meeting of Bogota bank
oiilclals to the effect that the average
monthly turnover of many mercantile
establishments amounts at present to
only about onefourth of what it is in
normal times.
AS a harbinger of improved condi-
tions, men prominent in Colombian
ilnanclal circles point hopefully to the
tendency toward normalization of dol
lar exchange, the rate of which con-
tlnues to fall slowly but steadily. 1t
is the opinion OF others, however, tl/
this phenomenon is largely the result
OF export shipments of gold, the coun-
try's stock of which was estimated at
only lI,0O0,O0O pesos prior to the pas
sage of the recent law, by which ex-
portatlon of gold was made possible.
and that the inconvenience incident to
draining the country of gold out
weighs any advantages which might
come from the maintenance Of the ex-
change rate at par.
Premium to Continue
Despite the downward movement of
exchange, experts say that since the
amount of gold in Colombia is not suf-
hclent to pay off its foreign debts the
rate will not for some time go below
the gold shipping point, which is only
another way of saying that dollars will
continue to command premium at
least equal to the expense incidental
to exporting their equivalent in coin
or bullion.
Notwithstanding the existing back
poverished condition of the national
treasury, considerable interest is be-
ing manifested in Colombia by large
American railway and steel interests,
presumably in anticipation of the $25,-
100000 of the Colombian treaty.
Proposals by three different groups
Of promoters have been submitted to
the government for the construction
of railway from Bogota, the capital,
to the sea. No such line exists at
presei.t, its place being taken by the
-NdsUalcud INlNtI, udNISdpIe or more
than five hundred miles, supplemented I'd
by three short lines Of railway.
Cross-Country Line
The best known of these proposals,
and the only one based upon an actual
investigation of the country, contem- :
plates the construction of railway
from Bogota 70 Bahia Honda, on the
Atlantic coast. This line, according to
the estimate in the hands of the gov
eminent, would comprise 1880 miles Of
track, in which is included 400 miles of
branch lines. The estimated cost of
the main line is s51 100000, and that of
the branches $20,0O0,O00. The longest
distance over which it is now possible
TO transport merchandise by rail with
out reloading is less than 100 miles.
1t is proposed to finance the prof ect
by the emission and sale of government
bonds at per cent, the bonds to be
issued at intervals. as needed
OF the two remaining groups of pro-
moters, one includes ex-senator Lori
mer, and the other is said to be
financed by Blair & Co. and to repre-
sent Frazer, Brace e. Co.. both Of New
York