Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-10-09
FATE OF US. STAKE
CAUSES CONCERN
Epidemic of South American
RevoIts Endanger Americas
$4,000, 600, 900 Investment.
BY FREDERIC WILLIAM VILE.


What is to be the ultimate fate of the
United States $4,000, 900 900 investment
stake in Latin America and our 81 ,000,-
600 900 of export trade is the problem
causing the principal concern at WASH
ington in consequence Of the South
American revolutionary epidemic. Re-
sponsible administration oficials, direct
ly charged with conduct Of our Latin
American relations. deprecate pessi-
mism. But they are filled with undis-
guised anxiety and admit there is no
telling, at this time, where or when
disturbed conditions will end. They
hope for the best, but seem to be pre-
pared for the worst.
While no identicaiIy common factor
caused the revolutions in Bolivia, Peru,
Argentina, and now Brazil. or precipi-
tated unrest in Cuba, Ecuador and other
countries, Washington authorities as
sign the underlying responsibility to
business depression. All the Latin re-
publicS, without exception, are UNDER
going an economic crisis. In nea.1y all
OF them the spirit of revolution Is dor
mant.
1t has remained vigorous o. qlIiescent,
depending on how firmly this Dictator
ship or that semi-democratic govern
ment has contrived to establish itself.
Everywhere from the Rio Grande IN
Mexico to the tip of South America
there are 'outs" awaiting their chance
to overthrow the Tins" Between polit-
ical enemies, ambitious militarists and
the turmoil which bad times always
generate, Latin American Presidents
and their governments perpeutally sit
on powder barrels. They hardly ever
know when their doom viii be sealed.
American Capital Poured In.
Notwithstanding these chemically un-
stable conditions, American capital has
been poured lavishly into Latin Amer
lea during the past few years. South
American governments, in particular,
have been literally accommodated f1nans
cially in the United States. 1t Is esti-
mated that not less than 80 per cent OF
the public debts of South American re-
publics is held by North American in
veStors. In addition, there is the vast
amount, running literally into the BIZ
lions, which is tied up IN oil, cotton,
copper, rubber, utilities and other in
dustrial projects. Roughly. Uncle Sans
investment stake OF $4,000 100000 IN
81 ,00o, COO, 900 in Mexico; 81 ,000, 900 900
in Cuba and $4,000. 900, 900 in Central
and South America. In Argentina,
Brazil and Chile-the "a B ca coun-
tries-British capital is also heavily en-
gagged, with considerable French and
German money, too.
Our huge investments in Latin
America are entirely apart from the
81 600, 900, 900 and more Of annual ex-
ports to our southern neighbors. As
the two most populous countries, United
States trade naturally is largest in Ar
gentina and Brazil, both now in the
throes of revolution. Argentinians are
far and away our biggest customers in
the south, taking some 10000 900 q
year of our wares, while Brazilians buy
more than 100000 900 worth. Mexico
ordinarily shops in the United States to
the extent of $115,0oo,00O a year. and
Cuba buys roundly $125,oo0,000 worth
Of Yankee goods.
Finances ENDANGERED.
That the revolutionary outbreak In
South America and other Latin regions
menaces these financial and business
relations is, of course, plain as q pike
staff. AS to investments, 1t means that
the floating OF Latin American bond
issues, at least for tthe indefinite future,
is going to be exceedingly dificult.
Investors nervousness is now being re-
Elected by the disastrous slump in all
Latin government and industrial bond
issues in Wall Street. AS to American
trade, the purchasing power of coun-
tries emerging from revolutions Is
bound to be crippled for long time
to come. Putting down instructions
or putting out one government and
setting up another are expensive I'M
dertakings. The money thus squan-
dered leaves correspondingly less for
normal expenditure, like the buying of
foreign goods.
A distinguished South American now
attending the International Road Com
gress in Washington advances the view
that politico-militarist dictator ships
having had sway in Latin America so
long and brought about only chaos,
new kind of dictatorship is called for.
He says that civilian economic die
tatorships" will be the next phase, and
he believes they will prove Latin
Americas salvation.
(Copyright 193O)