New-York tribune., 1922-06-04
American Loans

American Loans
Some Of the evil effects OF M
economical tariff legislation viii be
overcome alec By the loans which are
being made 70 Latin.American govern
ments. In the last few months Amer
ican bankers and security houses have
made thirteen offerings totshng more
than si7a. 900 900. These consist OF
Federal and municipal short and long
term loans. bearing rates from 70
z per cent. They have all been rapidly
absorbed. ard now We are told tnat
these countries are In the market Tor
between $500. 100000 and s4oo,0oo'Oo0
rnorr. At the present time nearly
dozen countries are understood 20 be
negotiating with local investment
houses for Accommodations here. The
largest single item is that Of SiOO'.
900 900 for Argentina. II IS the oeliei
that the issue when made will be split
equally between London and New YORK.
However. ve may get all Of II. Many
South American municipalities have
loan, scheduled ranging from $4,000
600 20 $4,000. 900 each A movement
is on foot 70 secure the adoption oy
American underwriters Of foreign loans
OF 4 definite policy under when there
will BE- included in The loan agreement.
wherever practical, = stipulation that
al or part Of the loan proceeds shall
be expended for the purchase Of Amer
lean products. This had been the
practice Of European lenders for gen
erstions. Now that the great war has
curtsilsd their lending powers 70 ~
only fair that we should adopt the
same rules. This. in itself. will give
s great stimulus 20 our trade with
Latin America.
There is another speculative phase
70 the probable economic development
IN Latin America which has highly
imaginative appeal. Up 70 date the N
dustrisl development Of this region nas
been comparatively Unimportont. The
countries Of Latin America have been
great producers Of raw materials and
BUYERS OF fabricated articles. Hydro
electric developments may change all
Of this. u is pretty generally believed
now that the age OF steam Is near 20 an
end. Hydro-electrie power will revo-
lutioniIe industrial relations through
out the world and IN no section will
this be more marked than throughout
LhEln hmcIlcds
South Ameries is rieh in potential
sources Of power OF this kind. ls i
any more Of strain on the probabiii-
ties 20 think Of that region as indus
trialized in the generations - come
than 10 was for the people OF Europe in
1881 70 hguratively leap 20 a vision Of
the time when North America would be
a gigantic manufacturing center,
The population Of Latin America hss
been variously estimsted from $1,000
Oo0 20 s0,00o.6oo. For present purposes
IL IS not important which o. these fg-
ures ia the more nearly exact We do
know that in Brazil. one Of the Latin
American countries alone, there is
enough room 70 hold all the population
% the world
" every man. woman and child In
the world should migrate 70 Brazil Il
would be no more densely populated
than is Belgium TO-DAY. The wavs OF
Providence are inserutable and perhaps
a wise God has left these great rich
region 20 be developed during this
century. Whatever the answer NAV be.
there Is IN Il only grounds fer optin
ism. II is on the books that the West
is % lead the East. and in this all Of
the Americans vii have & great part.
economically, politically and sociolog-
ieally.