Evening star., 1922-10-01
LATIN AMERICA BORROWS
HEAVILY FROM THE l.. S.
Many Millions Loaned by American
Bankers to Southern Republics for Re-
funding Debts and improvements.

tens. She is also applying the funds
/ toward reducing her obligations.
Argentina obtained a loan of S2.,-
| 100000 from New York bankers last
winter, which she is using to stabil
ize her currency. and reports have
been received here that she is now
negotiating another loan which Will
amount to about Sl50.0O0,00O.
Brazil obtained $25.V00,000 last win
| ter secured in railroad revenues.
part of which will be used in the
electrification Of some of her sys-
TENS. The state of Sac Paulo, Brazil.
negotiated loan for S4,006,000 moi
long ago. to be used in public works.
and Rio de Janeiro. which borrowed
$13.00O,000 here recently. is reported
to be contemplating borrowing s30.-
100000 more. which will be used in
refunding internal loans. This mu-
nicipal loan is interesting in that Rio
de Janeiro. according to those fami-
lar with her plans, intends TO specu-
late on the future of Brazilian ex-
change, by taking advantage Of the
present depression of the milreis.
measured in terms Sf the dollar WITH
the expectation that when the pro
posed loan natures, the BRAZILIAN
unit will be nearer parity.
The Dominican Republic borrowed
$6,700,O00 this year and is using 1t
in refunding her more pressing obli-
ago, Chile. is another South American
munici pality which obtained loan
here. the amount being S6.000,ooo,
which she is using in public improve
ment and settling internal debts.
Chile borrowed $4,000 900 here last
fall. and reports are current that she
is row negotiating for a loan Of $40
100000. Chile is using the s25.000,o00
in extensive operations involving the
use of Il large amount Of American
material
Filipe Solaris, minister Of finance
Of Guatemala. is now negotiating for
a loan of SS.000,0Oo. which will be
used by his country in stabilizing the
currency. Colombia, through her min
lister here, is understood to be on the
verge of closing deal by which she
will obtain about S16.000,000. to be
used in refunding her debts and in
public works. including the compile
tion Of her Pacific railway, a line
which runs along her coast and which
will form link Of the projected Pan
American railway.
Mexican Debts Refunded.
These loans mentioned. which do
not complete the entire list of trans
actions between the South and Cen
tral American republics and United
States bankers. are Independent of the
agreement recently terminated be-
tween Mexico and the international
committee OF bankers on Mexico, by
which the latter has taken over obli-
cations of the Mexican government
and the national railways of Mexico.
amounting in all to something like
s500000.000. This last negotiation.
which has just been completed
, through the action Of President Obre-
gon in ratifying it. proba bly, will do
as much as any one thing toward
fastening the recognition of Mexico
by the United States. 1t certainly
signifies McXico's determination to
wipe her slate clean at one sweep and
start over again.
There is no sentiment in business.
and it would be 4 far cry to say that
better and closer relations between
the Latin American republics and the
United States will result from loans
at per cent. Latin America has,
turned from Europe TO the CnitcG
States for her loans because the Eu-
ropean cupboard is empty. But Amer
lean money, no matter how obtained.
spent in Latin America will mean, in
many cases, American men and Amer
J lean materials used in the develop
ment of resources which must bring
! renewed trade and intercourse be-
| tween the two American continents.
And this all means. in the long run.
better and closer relations.