Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-08-30

Last year the United States exported
to Ecuador goods valued at $4,865, 900.
Imports from Ecuador aggregated
SIS, $50, 600, resulting in an adverse bal
ance Of trade for the United States of
$3.50 900, equivalent to slightly more
than per cent on Americas total in
vestments in the republic.
In addition to the bonds Of the rail-
road referred to above, Americans own
the Ecuador Electric Co.. supplying
GuayaQuil and Ricbamba with electric
power and light and serving an area
with an aggregate population of about
10000.
State Bonds Held IN U. S.
Other interests include the South
American Development Co, which owns
and operates gold mines in the province
of e Orc; the American Ecuadorian
Trading Co.. the Cachavi Syndicate,
which owns SOC, 900 acres. in fee simple.
with mining rights on the tributary of
the Santiago River; the Andian Cor
poration, which owns valuable oil con-
cessions; Standard Oil, through one of
its Latin American subsidiaries, the
International Petroleum Co.. and the
American Fuel OH e. Transportation
Co., which has a lease on 1,772. 900
acres
American capital is also interested in
Ecuadorian government bonds. through
the activities in the republic of the
International Match Corporation of
Delaware, an autonomous subsidiary Of
the powerful Swedish match trust
In 1927. the International granted
Ecuador loan Of 10000, 600 sucres,
equivalent to 100000 in return for
the match monopoly for q period of Is
years. The company took per cent
bonds at 80 and agreed to pay the gov
eminent an annual concession rental
Of 100000 sucres, or 100000 for the
flrst i've years, payments increasing by
100000 sucres for each additional fye-
year period.
national Match are widely held BY
American investors, the Ecuadorian sit
uation cannot be viewed altogether with
indifference. even though the extent to
which the company is committed N
Ecuador Is very small, the total,
amounting to hardly more than a frac-
ton Of the corporations total invest
nnents.
British Stake Equal to u. S.
Possibilities for the profitable invest
ment Of capital in Ecuador being re-
stricted, the amount Of foreign funds
IN the country is relatively small. Great
Britain's stake in 1929 was estimated
at s22, $50 900. almost exactly equiva-
lent to American investments in the
republic. and comparing with about
$i4.505, 900 in 1918.
British Ecuadorian commerce amount
ed, prior TO the war, to 81 256 600, of
which s2,624, 900 represented purchases
from Great Britain and 81 ,662. 900 sales
to Great Britain, resulting in a favor
able trade balance for the latter of
close to 81 200 900.
At the present time British commerce
with Ecuador is appreciably below the
pre-war levels. and there is little like
hhood Of any marked change in this
direction.
The same applies also to some extent
to the commercial relations between the
United States and Ecuador. The coun-
trys debt. comprising the Guayaquii s.
Quito Railway bonds and various other
railway securities, including those of the
Central Railway Of Ecuador, as well as
direct obligations sold chiefly in Lon
don and Paris, is In total default.
Ecuador LegaIizes Default.
The latest payment to holders Of GER
tain Of the country's external loans was
made in part IN 1880, but was discon-
ttnued. The government explained that
dScontInuance was prompted by the
hope that q Anal debt settlement would
be effected more readily.
Following the protest by the Council
E0retgn BondholderS, British organ
t2atioH 14lmDan1wo generations ago to
protect British holders Of foreign bonds
the government replied that a decree
passed by the Assembly In January. 1880,
prevented the remittance Of the debt
service funds.
In other words. not only did Ecuador
default. but she went so TarAS to legal
lie It. The prospects that payments may
be resumed in the near future do not
seem especially promising, nor have they
been helped by the present political dis
turbances.
tcopyrisht; 1891, By. the North American