Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-07-19

QepISSSlOH.
The factor last mentioned has prob
ing forth the idea of economic unions
among the countries of the Western
Hemisphere For the last two years
Latin America has been suffering from
the effects of the worlds economic ILL
ness. In fact it would not be venture
some to say that some of the Latin
American nations have been the hard
est hit. One-crop countries most Of
them, the decline in prices of the
particular commodity in which their
whole national economy was centered
has cut in half the public and the
private incomes, wrecked entirely the
governments budget and resulted in
a general business depression of I'M
usual characteristics.
The sugar crisis in Cuba. the tin
crisis in Bolivia, the coffee crisis in
Brazil. poor agricultural conditions in
Argentina, financial complications in
Peru, slow business in Colombia, and
so OH. are reported daily by the press.
Depending largely on the exports OF
their chief natural products to cover
their expenditures and meet their
foreign obligations the Latin republics
liable decline in values. to cut down
their budgets to minimum, to create
new taxes, to compromise their credit
and to face the gravest financial con-
ditins they have experienced in years.
Poor Use of Funds.
Furthermore, to the natural evils Of
the business crisis which has swept the
world at large, another factor has
added to the seriousness of the situa-
ton in Latin America. And that IS
the poor administration Of the national
funds by inexpert or dishonest regimes,
which were only recently overthroVn.
The failure of the old regimes in ham
ding the economic problems, aggra-
waited by government corruption, was
precisely the underlying cause OF sew
eral of the popular revolts which have
successfully taken place In Latin
America during the last IL months.
Under such circumstances, in the
midst of the worst crisis that Latin
America has ever witnessed, 1t Is not
strange to see the idea of economic CO.
operation among American states re-
vived by the suggestion "of the Chilean
foreign Office.
In advocating economic unions in the
New World Minister Planet is only fol-
lowing the example of the wise M.
BRAND with his Pan-Europe scheme
and the English supporters Of British
empire customs union. l have already
mentioned these discussions of regional
economic alliances as one of the factors
probably motivating the Chilean atti-
tude.
Finally, as for the other factor sug-
gested it is only logical to believe that
The reaction provoked in Latin American
public opinion by the highly protective
tariff recently adopted by the United
States and the harmful results SO far
observed may have had some influence
in determining the Chilean minister Of
foreign affairs to step out to the fore
front with his proposal OF customs
unions.
The reception which the Chilean
suggestion has met with in the capitals
Of the Latin american republics and
in this country deserves a separate
article. In the meantime, the impor-
lance already attributed to it may be
clearly noticed by the announcement
made by the Pan-American Union that
Senior Planets project shall be in
cluded in the discussion of the Fourth
Commercial Pan-American Conference
to meet in Washington next october.
Certain Considerations.
This announcement, however. sug-
gestS certain considerations which it
seems only timely to express. The
Pan-American Commercial Conference
will be materially unable to discuss
thoroughly the problem of an inter-
national economic union in the seven
days Of its tenure. There is. On the
other hand, another institution in
Washington, the Inter American High
Commission, which has been working
with the Pan-American Union in the
fostering of economic links between
the Americas, and which seems most
appropriately organized to take up the
study of such problems.
The American High Commits
sion is made up of national committees
presided over by the minister of
finances of each American republic
and completed by group of the most
prominent economists, financial and
country. The United States section of
the Inter American High Commission
headed by the Secretary of the
Treasury. has had q particularly active
role in the preparation of programs,
comparative data. statistics and legis-
lation submitted to the various Pan
American conferences gathered during
the last Is years. Even now, to pro-
mote the success of the next Pan
American Commercial Conference, 1t
has sent out to the corresponding ma
OlOIldl COII1I1lSSlOI1S memoranda on
various topics in the agenda of the
conference. so that the appointed dele
gates may get acquainted with them
in advance.
The Inter-American High Commits
sion appears. therefore, to be in a
privileged position to study at large
problems of economic cooperation in
the Western Hemisphere which require
time, method. and the aid of expert
knowledge Why should not it be in
trusted, then, by the next Pan-Ameri-
can Commercial Conference. with the
task of studying the possibilities of
economic unions in the continent, and
report its findings to the Eighth In
ternational Conference of American
States to be held in Montevideo,
Uruguay, in 1888?
Copyright, 1917