Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-08-16

IEh4EHo Tit ELOtlDIfttI UAi6IlCE Di Lit
Old World with the vivid power and
reality OF the new.
Concerning investments, there is one
profound truth that must be stated:
In the past most Of the investments
in Latin America have been in govern
ment securities, and thus limited by
fixed government incomes, which in
time OF crisis fall and make the bur-
dens OF debt excessive In the future
the trend OF investments must inevita-
bly, reach into new directions-into in
dustries, into productive public works
and into supervised expenditures under
engineers and industrialisjs.
Loans Not Excessive.
The loans to governments in Latin
America we're not excessive. even If
some of them were wasted. by the
standard OF the incomes Of the boom
years. Those loans we're for purposes
which properly can be extended FOR
payment over fifty or even a hundred
years. They are. ON the whole. sound
and revlving market will pronounce
them so. But beyond the type Of gov
eminent loan which the worlds in
sularity. and particularly that Of the
United States, has made the rule In
the last decade, rise the opportunities
Of controlled, supervised Investments in
national and private plant" for the
creation Of that higher standard of
living and buying power that is the
economic demand Of the world today.
The need Of new markets. however
is not the only reason why 4 new
power should be erected in the coun-
tries of Latin America Those nations
present, even more definitely than
Australia. New Zealand and South
Africa, outposts Of the type Of civiliza-
ton on which the world we know has
been built, They have suffered, in
variably, by the reflections OF distress
periods in Europe, and in the United
States itsclf--a proof that they are
definitely part of the world in which
we live.
They hold, these few hundred mil
lions OF men and women Of our cultural
end racial strains mixed though they
be with sutochthonous races which they
are definitely absorbing into their ma
tional lifel. a vast area Cf the earth's
surface. That area they cannot hold
alone, either against the reversions to
lower political types that now and then
seem to be the characteristics of their
history or against a future spread CT
the Oriental races into this rich region
Europe, and in a few years North
America, will definitely need those areas
for expansion and for the transplanting
Of their own peoples-pecples who are
like Latin Americans and part of the
civilization TO which they belone. The
Latin Americans must nave help TO re-
tain their place. and II they have the
type of help that will develop their
commercial and financial strength they
will repay us a thoussndfold.
Future Holds Possibilities.
quarter Of century ahead looms
As relatively small space of time but
in the history of the United States or
Canada, or Latin America. It Is crowded
with possibilities. The last half cen
fury OF the history of the American ma
items in the north OF the hemisphere is
crowded and colorful Into 1t entered
myriad forces, part OF which we can
analyze and part Of which still remains
vague but none the less powerful The
next 25 years will see vast changes both
here and there. but probably more in
Latin America than here
II is inevitable that populations will
increase, and in great waves here and
there not in any steady stream either
10 this country or to that geographical
area. 1t Is inevitable that in its tenn
perate areas. and. surely and not slowly
as man makes greater and greater gains
by his machinery, also in the subtropicS
and tropics shall develop the granaries
q the world. This must come despite
todays oYeTpfoduction OF food for
growing populations and new trends
in the economic structure If the older
nations viii take care of that These
regions must learn to add more and
more, even to their foodstufTs, before
their products 60 abroad their wheat
will become -four, their coffee perhaps
coffee extract. their nitrate Finished
fertilizers or gunpowder.
Moment Of Vital Importance.
Latin America has reached the end
Of the period of easy acceptance OF
exploitation. This is moment of vital
Importance to those countries and to
the world The glut OF raw Cofnmodi-
ties in 1880 and 1881 was In large part
due to uneconomic. uncontrolled pro-
duction on an exploitation basis, either
by foreign companies or local political
leaders IN Latin America. That day is
gone, and probably forever
Economic Sclf-sufficiency Is their de-
mand today II is a gallant demand.
and to its achievement will move all
the forces Of their national organiza-
tions--of that we can be certain The
world will however. have something TO
say as TO that. and through the invest
ment OF new moneys and the extension
OF new lonsterm credits under proper
supervision, the wisdom Of long expert
ence at last will help to determine the
directions of Latin American advance.
That IL viii be toward closer cooper
alton with the United States and with
Canada is inevitable. Judging by tend
encies OF the past. That II win bring
Latin America more definitely into the
p.orId NJ affairs is dpEfinV