Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-06
TRADE CONFERENCE.
OPPORTUNITY GREAT
Pan-American Farley Has
Greater Possibilities Than
Predecessors.
BY DAVID LAWRENCE.

While the eyes of the American peo-
pie have been focused on Europe for
the last several months, there has been
a feeling here that the United States
ought to be studying closely the
economic situation of Latin America.
Today the 81 republics, through ac-
credited delegates, are participating in
the fourth Pan-American Commercial
Conference here. Each conference in
the past has added to the opportunities
for closer economic understanding, but
this occasion transcends all others, for
the 500 delegates are meeting at time
when the whole world situation Is dis
turbed and when the debts of South
| America to investors in the United
States have to some extent required a
default.
Revenue Changes Impossible.
There has been an undercurrent of
criticism of some of these loans on the
ground that American investment
bankers have induced various govern
ments to borrow money that was really
not needed and have participated in an
era Of extravaganza which Is now
bringing crushing tax burden. Some
of these loans are secured by customs
and tax receipts In such a way that
changes in internal revenue system
are not possible without the consent Of
foreign bondholders committees, a
phase of inter-American affairs that
does not make the United States par
ticularly popular in Latin America.
Here and there have been hints of a
moratorium on South American loans,
but the situation is not parallel to that
of Germany or France because repara-
tions have been government obligations
to other governments. In South Amer
lea the governments borrowed from
private investors In the United States,
so default or moratorium is a serious
blow to the permanent credit of the
borrowing country.
Arrangements to refund South Amer
lean loans at better terms of interest
are likely to be made in the next few
years, but at present with the resources
of the banks of this country concen-
trated on transactions within the United
States and in short-term paper in
Europe, the chances of South America
getting favorable attention are by no
means favorable.
A year of revolutions in almost every
South American country has also served
to weaken the investors confidence in
pan American republics, so the confer
ence here this week, the date for which
was set long time ago, comes by CO.
incidence at a moment when much may
be done to show the American investor
the nature and character of South
American economic leadership.
Export Gains Are Lost.
There's another viewpoint from
which the conference has an important
bearing on economic developments in
the United States For the last seven
years the United States has been max
ing steady increases in export trade,
but in one year three-quarters of the
gain has been wiped out by the de-
preston Likewise the United States
has bought much less goods from South
America.
The market to the south is consid-
cred a natural outlet for the goods of
the United States, but the tendency in
the financial centers of the United
States has been to look to Europe for
large financial operations and the fur
nishing of credit. The hope is that
American capital now will see that in
South America lies a real opportunity
lor financial and trade cooperation,
and that will be the emphasis of all
official utterances this week.
SNoN