Evening star., 1927-05-08


their grievances into the open instead
of being shut up behind closed doors
| in poisonous atmosphere.
The question of tariff which for
time threatened the harmonious re
! lations when brought up by Luis
! Duhau, president of the Argentine
| Rural Society, proved to be distinctly
! advantageous for, as result not
/ only did John II. Fahy, one of the
! founders and former president of the
/ Chamber of Commerce of the United
States, explain conditions. but secured
the passage of a resolution providing
for compila ton and study of sta
| tistics TO be distributed to all mem.
! hers of the Pan-American Union, aim
ing at a complete understanding of
the barriers. technical and otherwise.
to trade between the American coun-
tries Such a study is needed by the
leading foreign traders in this Coun-
try. Eighty per cent of the imports
from Latin America 10 the United
States today come in duty free. If
! YOU apply the same yardstick in re-
gard to goods free of tariff into Latin
America. it would he readily recog-
nized that the advantage lies all in
their favor.
Will Relieve Tension.
So, even a discussion of the tariff
problem was helpful. Some OF the
countries would like to have us allow
certain of their products to come in
duty free. as for example citrus fruits,
but imagine what it would mean 10
have such a proposal come before our
agrarian interests. But when we can
show the reasons for these tariffs, As
will be brought out in the Pan-Ameri
fnIl haf
countries will be better satisfied, they
can see what their offset protection
is. and the tension will be relieved.
On the other hand, in this very
congress, certain things were brought
out that were diSadvantageous to
Latin America which are going to
be corrected Take for example the
case of the commissary of the Panama
Railway Co., a United States Govern
ment institution. The commissary
was set up to supply workers in the
Canal Zone. but it appears that there
has been an abuse of that commissary
so that individuals have been purchas
ing supplies there to the very grave
disadvantage of merchants in Panama.
That condition is now being dealt with
and the matter is being brought to
the attention of President Coolidge to
have steps taken to correct that abuse.
One of the most important forward
steps is expected through simplif1ca-
ton of consular procedure and Gus
toms regulations, which cannot but
be of advantage to Latin American
trade interests and also to those in the
! United States.
Good Roads Need.
Another matter that was empha-
sized in connection with transporta-
ton in inter-American commerce was
the absolute need for good roads. The
discussion of this question led to con-
sideration of a very definite. program
OF road construction. Aerial communi-
cation and transportation also was
considered earnestly, especially from
the standpoint of establishing routes
ports and passenger traffic. 1t was
shown that already there are a large
number of routes in operation and
big development in aviation as an
agency of inter-American trade was
prophesied.
OF very distinct and fundamental
Importance was the discussion regard
ing American investment in Latin
America. The warning to American
investors to be cautious of lending
and borrowing in Europe, by Thomas
w. Lamont Of j. p. Morgan & CO.,
at the dinner of the American section
of the International Chamber of Com.
merce, coming on the heels of some
what similar warning earlier in the
day by Secretary Hoover before the
Pan-American Conference against un.
protected loans. made decided i'm.
preston. This stressed the care
needed in making loans and invest
ments; that they must be used for
constructive purposes only and that
bankers must refrain from cut-throat
competition among themselves in
making unWise loans.
Large Money Flow.
Mr.. Fflsinger called attention that
money is going into Latin America
| today in really huge amounts. The
rapid increase in national wealth in
all these countries, at phenomenal
rate, is obviously due to the invest
ment of huge amounts of foreign capi-
tai Our own participation in this
movement is astounding. During the
rfst three months of the current year,
American investment in Latin Ameri-
can foreign capital issues publicly Of
fered in the United States, % in mum.
| ber, represented S141, ,682 900 out of a
total of 1850, 900 new capital issues
publicly offered in the country, for the
entire world. At the end of 1925 the
estimated value of American invest
ments in Latin America totaled $4-
201 100000, of which $4,000, 600, 900
: were in industrial securities and direct
investments. Only 100000, 900 were
represented by Government guaran.
teed obligations. Needless to say that
IN addition to these huge sums a con-
siderable amount was invested in pri-
Vate enterprise for which there were
no public issues of capital.
The growth of manufacturing es-
adjustments of every sort in Latin
America Is proceeding at an anna zing
| rate. In many Of these, American
| participation is heavy The inevitable
result will be continuously growing
volume of invisible imports into this
! country in the shape of dividends paid
/ 10 American shareholders. interest on
the obligations Of Government, agri.
cultural, mining and other enterprises
in which our citizens have invested.
Account should also be taken of the
substantial volume of freight charges
/ paid by the Latin American buyers of
merchandise imported in ships owned
| by American companies. In addition,
there is the rapirly growing volume
! or commissions on transactions in
Vclving banking, insurance, etc.
! Capital is Praised.
! The point was well made by Victor
! NJ. Cutter president of the United
! Fruit Co. Boston, Mass, a speaker
at the joint Pan-American and Ma
| tional Chamber meeting that the
| Latin Americans really need our
/ money 10 develop their countries.
They are dependent upon foreign
| money. 1t was brought out in the dis
cussion that for years upon years the
/ United States-practically up to the
! World War-was a tremendous bor-
rover abroad. SO Latin America must
realize the enormous economic con-
! structiye value when loans are nego-