Evening star., 1928-11-25
Hoover Reveals Hoover

at about 81 1,00o, 100000.
These investments have been made ir
the interest of the development OF the
vast latent resources Of the Southern re-
publics. Without them. host OF IN
dustries which today form the very
foundations of those countries woulc
not be in existence. With the serious
impairment of European capital as the
result Of the war, that ancient source
of financial strength for the Latin re-
publics was nearly dried up and is only
now beginning to trickle back to life
Consequently. the great reservoir CT
capital which has developed III TINS
country has been the source of invalu-
| able strength for the needs OF these
thriving new communities.
American capital has a dominant
position in the mining industry Of
Mexico and the West Coast. the frui'
industry of Central America, meat pack
ing in the. River Plate territory
petroleum in Colombia, Peru and
Mexico, and sugar and tobacco in Cuba
to say nothing of the smaller though
significant investments IN the nitrate
fields of Chile and the new rubber eX-
ploitation of the Ford Co. in Brazil
British traders. indeed, are alarmed
over the gradual spread OF American
capital holdings in some OF the East
! Coast sections, where European invest
ors have held sway for decades: Many
European-owned public utilities are
gradually being absorbed by American
! Investment groups. and the favorable
effect of this tendency upon our export
trade is likely to be evident In the near
! future.
| Finance in Wide Range.
One striking feature of this invest
ment situation is the tendency toward
diversif1cation of our interests. In
pre-war years American capital was
largely concentrated in a few great
| mining and nieat-packing enterprises,
! but 1t is now seeking out wide range
of opportunities for the development of
! the vast hidden resources of these
thriving communities.
Indeed. American capital Is IN the
| forefront in taking advantage OF the
new industrial life that has sprung into
existence in many of these countries AS
a result of their w>c-time isolation from
overseas suppl. of fabricated wares. AL
though tne shoe factories. textile mills
and automobile body manufacturing
plants, which are being installed by
American enterprises in the larger cities,
may interfere to a certain extent with
our exports of finished goods in these
lines, nevertheless it is also becoming
evident that these developments through
their stimulation of better living by
payment of better wages are having a
most salutary effect upon our trade.
Direct Representatives.
One of the most important contribu-
tions to American commercial advance
- 1Afc
the notable increase in the number Of
direct representation agencies and
branches of American trading firms
and banks If Mr.. Hoover had made
his present trip in 1918. he would have
found only. one American branch bank
and one American chamber OF COM
merce on his route. Today we are
represented by both of these valuable
trade building agencies in virtually every
Latin American capital. and these
stimulators of more business are work.
ing for the direct distribution of Amer
ican goods through American agencies
wherever possible. In pre-war days a
very large proportion of our trade was
handled by Germans and Britishers,
whereas at present the bulk of it is dis
tributed through American or non-com-
peting native houses.
An invaluable element in the i'm
provement Of our trade prospects to
the south has been the expansion of
the news service and the facilities for
communication. The two of course,
are closely related. and they form a
most valuable basis for better UNDER
standing. European-owned cables now
total about $4,000 miles in Latin Amer
ican waters, which Is slightly less than
their pre-war figure. The American
mileage, however, has increased from
about $4,000 before the war to $4,000
at present.
Has Clear Picture of U. s.
Today there is as much space devoted
in the average representative Latin
American daily to news from the United
States as there is to material from the
whole of Europe. The healthy compe-
tition of the great American news
service and the cable and radio COM
panies has brought to the average
citizen in Latin America far clearer
and fairer picture of the political, social
and economic life Of the United States
than he was ever able to secure before
1914
Still another tie among the American
republics which has long reused Mr..
Hoover's special enthusiasm has been
the increasing numbers of students who
have migrated from one country to an
other. At present there are more than
1000 young Latin Americans in our
universities, most of them in technical
schools, where they are absorbing the
fundamentals of American industrial
and commercial life The ultimate
reaction of such infusion upon our
trade is obvious
These social and economic forces,
which are springing into being in the
New World under the vigorous stimu-
lation of the new life that is steadily
gaining strength in each of these re-
publics, are bound to make for closer
contact with the United States upon a
/ basis Of mutual helpfulness.
Should Know Each Other.
And in order that this should take
place, it is indispensable that these
neighboring peoples should know each
other with increasing intimacy. In nc
other way can the walls of suspicion
and even hostility, be obliterated.
Mr.. Hoover well expressed it a few
years ago when he said: II sometimes
think that all this relationship between
nations-especially when they are sepa.
| rated by languages comparable will,
our relation to a strange family which
comes to occupy neighboring house
| We do hear from it the disturbing
! noises, the occasional bursts of laughter
| We hear cries of distress from the
| young in the process of discipline. We
see the dog fights in their yard and
notice if the new neighbor paints his
| front porch. These are, indeed, the
news bulletins. But we see little OF
none of the finer qualities of home life
the affections, the self-denials the Joy:
and sorrows of this neighbor We dC
not see the neighbor's family album
| and it is so with nations We have but
little acquaintance with those fine
flowers of their national accomplish.
! :nents, or their national thought ane
ideals"
It is for the purpose Of laying thu