Brownsville herald. [volume] (Brownsville, Tex.) 1910-current, 1927-10-30
Latin American Loans

Recent charges by politicians in Latin America and
also by 3 few Of the politicians Of the sensational class
in the United States that this country was assuming
q psternaistic attitude toward all Latin-American gov.
ernments, and had adopted an "imperialistic policy"
in its dealings with some of the Latin republics, has
created considerable interest throughout the United
States. americans are conscientious DIRECTORS to any.
thing paternalistic or imperialistic, but thus far they
have failed to find grounds for criticism in connection
with the governments altitude toward the Latin repub-
lies orthe part it has taken in their affairs.
More than $500 100000 of L~atin-American Sc
curities have been sold in the United States since 1919
representing 20 per cent of IL foreign loans floated in
this country during that period. These loans have es-
tablished practically all Latin republics upon a sound
financial basis; they have brought prosperity TO ma
tions which less than a decade ago ranked lowest in
the world in the scale Of national wealth production;
and they have served TO stabilize governments and act
rs q deterrent to revolutionary tendencies.
The statement has often been made by American
and foreign politicians that the American bankers are
assured by the Department Of State that loans going
into default will. if necessary. be collected by force Of
arms. Nothing is further from the truth No such
promise has ever been made by the American govern
ment to American money lenders. nor is it possible 70
cite any instance in which the American government
has used armed force for the purpose Of collecting un-
paid bonds held by American citizens.
The ~Latin-Americ governments almost invariably
come to the United States TO secure the necessary
funds to finance their respective countrise. Between
them and the American bankers has been established
a feeling of confidence which is the direct result of the
new era CT prosperity American capital has established
in L~atin-America- Governments which a few years ago
were not even recognized in European financial cir
cIes, are now issuing securities which are considered
by American investors equal 70 Il not better than
those issued by many of the European nations. The
development and prosperity upon which those securi-
ties are based have been established BY American loans.
Each year the financial and economic positions OF
the Latin republics is improving. Their securities are
becoming of more value as the governments become
stabilized, and the business interests Of these repuo-
lies are fully appreciative Of the efforts Of the Ameri-
can government to eliminate revolutions and TO take
any step necessary to prevent armed conflict between
opposing political forces.
There Is nothing imperialistic or paternalistic In
the attitude Of the United States toward the Latin re-
puhlics. A the dominant nation Of the western hem
isnhere Il Is a duty the United States owes the world
70 maintain order and to increase the prosperity OF
the countries on the western side Of the Atlantic.
I~atin-Americans Of the better class are fully appreei-
atiye Of this fact, and such criticism as may come from
those countries almost invariably emanates from the
radical class which would welcome a return TO the old
order Of frequent revolutions and political phfer1ng.