The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1927-05-04
The Only Dollar Diplomacy That Pays

President Coolidge last night addressed the
third Pan-American Commercial Conference at Wash
ington
Naturally enough the gist of his remarks had
to do with our trade with the Latin Americas.
Said he;
"In 1880, nearly 100 years ago, the value of both
exports and imports amounted to about $25,O0000O;
fifty years later it had reached more than $200000-
900, only little less than ten times much; and
during the last ten years it has averaged not far
under $2,oOo,OOOO0O, again increasing almost ten
fold in fifty years.
Which is splendid But read
During the last five years." the President con-
tinued, 4'our purchases (from Latin America) have
amounted to total Of $5,O6SOoO,OOO and our sales
$37S1 100000, showing difference of 1887 0OO 900,
or an excess of about "a per cent"
That is to say we buy "a per cent more from
Latin America than she buys from Somebody
else is getting lot of trade down there too. We
really ought to be selling to them much we
buy from them. Trade should just about balance
But
up to the year 1913," the President tells u.s.
South America still imported from Great Brit
ain and more from Germany than from the United
States. Since that time the United States has
reached and maintained the first position in the
import trade Of South America just it has main
American
republics"
In other words, up to the World War both Ger
many and Britain outsold us in South America. Dur
ing the war they could not supply the goods and
we could. So we went into first place. Since the
war neither Britain Germany has had time to
come back, but at this writing both countries with
France Italy and other trading nations, are rapidly
catching up and the day is not far distant when we
will have to hustle like bazes to maintain our DO
sition.
This brings face to face with our Latin
American policy. In the war to capture the Latin
American markets. of the deciding factors will
be sheer good will
AS between goods of approximately the same
price and quality the nation possessing the greatest
amount of good will will get the order. If we get
in bad with the Latin-American people, Brtons Ger
mans and the rest will romp away with the trade
It's easy enough to say let our exporters worry
Loss of foreign trade would hurt us every one
True before the war we got along very we'll with
much less business of this kind, but then ours was
not the exporting country even the industrial
country that it is today We've a bigger surplus
now to dispose of if we are to prosper.
Fewer goods sold in Latin-America means fewer
goods manufactured in this country. That means
fewer workers in the factories and more idle hands
In turn there would be fewer buyers in the stores
requiring fewer clerks to wait the customers
Which further adds to the unemployment and les
sens the total of money to spend And so on down
the line.
1t is because of incontrovertble facts like these
that this newspaper has repeatedly warned against
the bullin-achina shop diplomacy of Secretary of
State Kellogg in Mexico and Nicaragua of late. 1t
has resulted in an ncalculable loss Of good will
throughout Latin-Amerca at time when we need
every bit of good will accumulate.
Aside from the moral issues involved dplo.
macy of friendship is the only sense policy
to pursue to the south of us, as elsewhere In the
long it is the only policy that will pay. 1t is the
only kind Of dollar diplomacy we can afford.