Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1922-12-31
LATIN-AMERCA TRADE
TAKING DEEPER ROOT
This Country Steadily Gaining European Rivals
Large Scale Reproductive Investments of American
Capital Bringing Permanent Benefits.

J -
becoming more and more Interested.
especially In the exploitation of pc
trolcum and other valuable mineral
deposits. ono interesting reaction OF
another 1922 lo-a is that connected
with the sI5.000.00o advanced to the
City OF Montevidco, which Viii give
to that municipality the first COM
pic'eiy equipped American telephone
system In South America This should
insure growing demand for fur
Their equipment OF the same nature
in other parts OF tho continent
The various Chilean ilotatlons maxi
ing up the tle.0oo.o00 or moro which
were raised In this country during
lH22. though apparently intended pri-
niarily TO strengthen the financial POI
sit'on OF the government, viii also
react favorably Upon the industrial
and general economic position Of that
important country. The electrlaca-
ton OF its leading railway, which is
tied UP with one Of the loans. Is
bound to stimulate a demand for cleo
trlcai equipment. and should con-
s!derahiy advance the Development OF
one OF the most valuable areas OF
hydro-clec;r!c force on the CONT
ncnt.
Need OF Caution.
There is. however. distinct need
for word OF friendly caution In this
regard. The surprising case with
which these enormous sums have
been raised In this country have
greatly encouraged the hopes and
aspirations OF many officials. muni-
cipai. provincial. and nationa!
throughout Latin America. and
every friendly effor, should be made
10 keep their aspirations within the
proper limits. This is obviously TO
the best interests OF these countries
az well as of American investors In
general.
The needs for capital In Latin
America arc almost unlimited. Latent
wealth Ia aliurinGly accessible In
many places. but n certain restraint
and moderation is Indispensable In
any plans involving the exploita-
ton OF these regions II tho develop
ments are TO be kept within the
bounds OF economic sobricty. Thus
far none OF the m.sjor flotations
which have been made In this coun-
try on behalf OF Latin American In
tcrests have developed any unsatis-
factory phases. and II is To be hoped
that tho continued caution and CO.
operation of both borrowers and
lenders will prevent any episodes
which might we'll damage very Sc
a''hS'N tit h'sh NoptS anu
aspirations OF those Americans OF
both continents VIII" have the stable
financial and commercial bonds be-
tween their respective lands at
heart.
TIL. petroleum situation IN the
Southern republics ls worthy OF a
word OF comment. The general trend
during 1922 has been toward IA more
Intense activity on tho part OF the
American petroleum industry in GER
tain South American centers rather
than in Mexico. Tn. oil output in
tho latter republic during the hrst
malt OF 1929 reached a record figure.
out in recent months thcre has been
considerable contraction In the out
put or the more developed areas.
There has been n distinct drift to-
ward the southern felds and the
isthmus OF Tchuantcpec has offered
opportunities for considerable specu-
laiion. large part OF tho shipment
now leaving the country are from
tank storage stocks owing TO tho de-
cine In production In recent months.
Payment To Colombia.
Tho most notable activities on the
South American Continent during
the year have been those In Colombia
and Argentina. American capital has
try y new refining plant installed
under American control is now sup
plying good portion OF the loca.
needs Tor refined products The first
*5.OOO.Vo0 payment TO tho Colombian
government on the so-calied ''indem-
nifty was made by the United states
few weeks ago and has further i'm
proved the status OF American enter
! rise In that country. especially with
A. a l.
lombian government
Germany ELIMINATED.
There has been some alarm in GER
tain America export circles regard.
Ing the increasing intensity OF Euro
pcan competition in tho leading trade
centers OF Latin American countries
during tho last year. Thus far. how
ever, no seriously disturbing factors
have developed in this regard \ re-
HcWal OF European efforts to regain,
IA, leasi part OF the old ground was
inevitable. hut any thought that Eu-
rope cnn retain at an early date TO
It's domination OF tho largar markets
At tho pre-war ratio is out of tho
question In 1913. out of the total
imports OK Latin America, approXi-
mating Si.4c0.G00. 900 of The United
states and tho United Kingdom were
on almos; exactly the same footing
with quotas OK approximately Ssi0,-
100000 ana s3+5. 000 900. respectively.
Germany was third. with about SEQ
100000. Any thought Of n return to
this situation Is. of course. absurd. IA
IL likewise any assumption that We
can hold the very large prcdominanco
gained temporarily in loi9-20
Germany has been completely clint
mated from tn, picture and thore arc
m signs whatever OF any material
recovery on her part. Her much dis
cusscd advantage OF low quotations
IN greatly deprecated marks has
been completely ob!itcratcd by her
Inability 10 effect prompt delivery
and TO approach anywhere near her
prc-war qualities OF merchandise.
Her most serious loss has. of course.
been in her distributing organizations
throughout Latin America, which
comprised her great asset in the
trade q! that area before the war.
Unless she can induce British and
American manufacturers to supply
her Immediately with large auanti-
Ties o! merchandise for distribution
through her banda In the Southern
which Is extremely unlike
ly--it Is difficult to see how her sales
OF machinery can be built up in the
near future.
American exporters have dcveloped
their own idea for distribution dur.
ing the past eight years ,rhcre nrc