Evening star., 1932-02-21
SOUTH AMERICA MATCHES
REVIVINC i. S. OPTIMISM
Hopeful Signs From Across Rio Crande
Coincide With New Confidence
Felt in This Country.

The dispatch adds Iaconically. that
the foreign debt services, due on Janu-
ary /, were duly met" notWithstand-
ing several heavy payments made in
settling short-term Indebtedness, which
is almost "front-page" news in period
when most of the Latin republics have
been forced to defer payment on their
foreign obligations.
Another message from BuenoS Aires
reports that new source Of income for
the national government-and an i'm
portant one-has just been opened with
the enactment of income tax legisla-
ton. which is a definite break with old
traditions and fiscal practice. The
change is said to be one of great social
and financial transcendency, for. apart
from the fact that broadening the in
cldence of taxation means the priv
ileged class formerly in control is losing
power. new sources of revenue create
possibilities of quicker adjustment of
budget deficits and loan problems. at
the same time making for greater flexi-
bllity in tariff matters.
The major significance Of that change
is that it is characteristic of tendency
which is gaining weight in other parts
OF Latin America. Until recently taxes
in Latin America were largely restricted
TO export and import levies and special
excise duties. This spared personal in
comes and left untouched a field OF
great possibilities from the standpoint
of the state, while placing the national
treasury in a particularly Vulnerable
position. since income had to be drawn
from two or three sources subject to
wide fluctuation.
The new tax practice, as the message
points out. is one of the most hopeful
signs of the times, because 1T means
the recognition of political change fol-
the better and it will greatly strengthen
national finances
| In Colombia, one of the most i'm
pCrtant South American republics. sim
ilar methods to those used in the United
States to stimulate the return of public
confidence are being adopted to prevent
bank failures.
A United Press dispatch from Bogots
advises that President Olaya Herrera
formerly Minister to Washington, whC
has consistently tried to adapt Ameri
can methods to his administration, ha.
decided to establish an organization tt
be known as the Colombian Credit Cor.
poration, along the lines of the on,
formed here by President Hoover.
Organized to Aid Banks.
The Colombian corporation, with {
capital of nearly s1O0OO,0 900, will en-
deavor to stave off bank failures BY
paying cash for frozen commercial pa
per of banks in precarious condition
The measure, as the cable reports, vii
greatly help to relieve financial condi
| tions in Colombia, and thus it may per
init the President to carry out his de-
termination to avoid the declaration o
general moratorium on the country
foreign debt which seemed imminent ;
few weeks ago.
ranged with the holders of depart
mental (provinciaD and municipa
bonds to make the required payment
in script bearing per cent interes
and maturing in 10 years.
Another report from Bogota adds tina
the Colombian government is also con
templating the calling of a nationa
economic conference attended by rep
resentativeS of all provinces, CONNER
cial and mortgage banks and treaSur.
officials, to devise means to start a re
construction program.
A brief dispatch from Mexico Cit.
stresses the significance of the larg
road construction plan being carried ou
| Dy the government OF the nelghD0rlnl
republic. Aside from the relief to loca
unemployment that this represents, tn
dispatch points out the benefits to b
derived in terms of tourist trade whel
some of such roads, now under way, ar
completed.
Particular mention is made Of tn
projected highway from Mexico City t
the Texas border, which is scheduled b
be inaugurated before the year Is oVel
} Continued on Fourth Page.)