Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-09-12
POLITICAL UNREST
AFFECTING TRADE
u. S. investments in South
America Jeopardized' by
Recent Developments.
From Yesterdays $50 Edition.
BY ]. c. ROYLE.

Political unrest in South and Central
America is likely to affect American
foreign trade unfavorably, but so far
imports and exports to the Southern
Hemisphere have not been checked.
Also, there Is a general feeling among
government securities and in business
vestments, both in South American
government securities and in business
ventures in the Latin American coun-
tries, are in no way endangered.
There is no chance that South
American bonds will be repudiated,
officials here say, and developments
have shown a general care on the
part of the successful revolutionists to
protect American lives and property.
The same Is also true of English, Ger
man and Italian investments.
Government Costs.
It is obvious that financial consid-
erations are more powerful as a con-
trolling factor than the Monroe Doc
trine or any other political policy. 1t
costs money to run governments ana
those who have taken over the reins
of power realize that overt acts al
fecting American investments, or, in
deed, the investments of England, Ger
many or Italy, would shut of neces-
sary credit and threaten the success
of the movement they are sponsoring.
American and British bankers have
already joined in offering a loan 10
the Uriburu government in Argentina.
T.. C. Plummer, vice chairman OF the
United States Shipping Board, declared
today that he viSualized no serious ell
feet on American shipping growing out
of the uprisings in Latin America.
Naval vessels are always in a position
to rush to either coast of South Amer
lea should American lives or property
be endangered, hut the extent OF the
political changes was not considered
threatening and no additional naval
activities are expected TO be neeoeo.
American shipping lines are continuing
full schedule operations.
In Brazil the moves winch nave taksn
place were anticipated as result OF the
big drop in coffee prices. Each side In
the political situation there, however
is expected to use extreme care, espe-
cially the fact that Brazil owes England
large sums based on coffee and is oe-
pendent to no small degree for It's pur-
chasing power on its trade relations
with the United States.
1t was by the use of money borrowed
from English and American investors
that Brazil was enabled to withhold
coffee from an overburdened world
market and for a long time to peg the
price. The coffee situation is also
crucial one in eight or nine other Latin
American countries. American invest
mentS in Brazil, according to Govern
ment figures, range between $58O,0OO,-
600 and $640. 100000, of which the,
larger portion is in government bonds.
Investments Large.
German, English and American in
vestments are large in Bolivia. Peru and
Argentina, and in the last country the
trade with Italy also is prime factor.
England is the main market for Argen~.
tine beef. The crops there also are fac
tors in the wheat, corn and hnseed
markets In Bolivia the British Ger
man and American tin and non-ferrous
metal mines in general are very extern
sive. Peru is dependent on the coun-
tries named for the disposal of copper
nitrate and other products. The speed
with which steps were taken by the new
Peruvian government to check any dan
ger to the Cerro de Pasco mines, owned
BY American investors, showed the
policy which is likely to be followed by
all these nations in dealing with for
eign -owned properties.
In no case has the nation affected
by unrest ceased to be a going con-
Germ" Revenues are coming in to the
new governments as they did to the old.
Disbursements are being made in q
similar manner.
(Copyrisht, lss0)