Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-11
LATIN AMERICAN FINANCIAL
DIFFICULTIES REVEALED
Commercial Conference Shows Eco
nomic Conditions as Basis for Violent
Changes in Governments.

necessary to help the nation out OF the
present economic crisis"
The extraordinary powers accorded
the Colombian executive will last until
December. Under this authority, Pres
ident Olaya may alter the customs tar
IFS to the extent that he might deem
convenient to provide relief to the local
industries, or he may prohibit entirely
the importation of certain foreign raw
materials or manufactured goods.
Using the emergency prerogatives
given him by Congress, the chief Ex-
ecutive Of Colombia has already taken
measures to prevent the flow Of gold
abroad and to maintain the interna-
tional exchange.
Although it might finally result
harmfully to the prestige of parliament
tary government in Colombia, the Con-
gress Of Bogota did not hesitate to
enact the Flaw Of emergency" feeling
that it should facilitate considerably
the difficult task of the executive in
these trying times.
New Economies Urged.
In other South American countries,
where political agitation is intense In
view Of the forthcoming elections, eco
nomic conditions are being used by
elements of the extreme left for partisan
purposes. Peruvian and Chilean radicals
are advocating extreme economic meas
ures by means of which they promise
to substitute new and more solid
financial system in the government.
A recent dispatch from Santiago,
the Chilean capital, announced thus
the outstanding points OF the Com
munist platform for the presidential
elections: Foreign debts will not be
recognized: dissolution Of the recently
established and government-controlled
company for the exploitation of the
country's nitrate; recognition OF the
Soviet government and increased COM
mercial relations with Russia; govern
ment appropriation Of large private
estates and Specialization of the land;
naturalization Of credit and foreign
exchange, etc.
OF course, these are only the views
Of a group of radical leaders who must
offer something new and revolutionary
to attract the sympathies of the masses.
The Possibilities Of their realization are
very remote, but, at any rate. II moth
ness of economic conditions In those
countries.
To Distribute Land.
ITO alleviate the critical conditions
brought about by the present economic
depression and the lack of employ
ment," announces the government of
Guatemala, new law has been en-
acted, by which large extensions of
land owned by the government, will be
distributed gratuitously to individuals
who desire to engage in agricultural
pursuits.
An official communique from Guate-
mala City states that this law marks
the beginning of a whole system OF
orderly social renovation, made neces-
sary by the present situation. and In
| tended to avoid the class conflicts or
| the violent methods which accompanied
similar reforms in other countries. The
! Guatenalan government asserts: ''Te
govern Is TO foresee and to provide"
Thousands OF unemployed working men
and poor people will take advantage OF
this law and it will, at the same time,
give a new impetus to agricultural pro-
duction in Guatemala, thus tending 70
diminish foreign imports OF foodstuns
and grains.
In the rest of the Latin American
nations the most frequent measures re-
Cured to- in order to face the critical
economic situation prevailing there,
have been in the way Of large budget
economies, salary cuts, suppression Of
unnecessary Offices, increase Of taxes
and customs duties, etc.
Cuba Reduces Salaries.
The latest reports along these lines
come from Cuba, Mexico, Bolivia, and
Uruguay, although these are by no
means the only Southern republics re-
stricting government expenditures. In
Cuba, successive reductions in the sal
aries of all government employees have
resulted ina total cut of As per cent.
Mexican congressman are reported to
have been called upon to do their share
in reducing the expenditures Of the
government by voting on q proposal TO
cut their own salaries Is per cent.
The Bolivian government announces
that the officers and employees Of the
administration will be paid accordingly
to the nations revenues, proportionAte
reductions being subject to the ups and
downs of the national income. A 20
per cent cut had already been sane
toned by Congress last year.
In Uruguay, according to a Sipa dis
patch, the workers themselves have
suggested that their hours be reduced
to five a day, with a corresponding cut
in wages, so that more men might be
employed. At the same time they Of
fered to contribute percentage of their
wages to the state for the purpose of
assisting the authorities in meeting ex-
change losses caused by payment of in
tereSt and amortization on the foreign
debt.
All these are only some of the latest
steps taken by certain of the Latin
American governments in order to cope
with hard times. They command par
ticular attention at the present mo-
ment because they come at time when
their representatives are discussing in
Washington the best ways to promote
inter-American trade and aid in the
economic recovery of the Western
Hemisphere. And they picture better
than the most eloquent speeches the
Latin American crisis which has been
In the minds of the 500 delegates to tie
Fourth Pan American Commercial Cor
ference In Washington.
Copyright, 1917