Evening star. [volume] (Washington, D.C.) 1854-1972, 1932-03-20

gin to ask: eff the British Dominions
ind 1t to their advantage to buy their
supplies OF these commodities from the
United States, II Great Britain itself
finds it likewise to her advantage, why
should Argentina buy them in Great
Britain?"
There is no answer handy, and while
the British are hunting for one we may
make a further analysis of the trade
figures. This will disclose that the
striking growth in American exports to
Argentina has not been at the expense
OF British trade. There has, Of course.
been some slight displacement of Brit
1Sh goods. but no more than Is normal
and happens all the time in the trade
OF all countries. The great bulk of
the new American trade is in articles
which we produce in enormous quanti-
ties for home consumption and can ship
abroad at prices which are beyond the
reach Of competition. Motor cars and
accessories, petroleum products, lumber,
farm machinery, radios automatic re-
frigeratorS and cotton yarn-theSe are
examples of the sort of products we
sell TO Argentina.
Great Britain, on the other hand, has
similar overwhelming advantages in
certain products. Coal, textiles, railway
materials and electric wire are exam
pies. In these Britain enjoys the same
advantages that We do in our special
ties. Her trade in these commodities
has grown in proportion to the growth
of the market
Why, then, has the total of British
imports remained practically the same,
while American trade has bounded
forward?
Tho opeuar 10 e. Ia Fo,ol - 49, A.,
genuine tariff. We have heard much in
this country of the Argentine criticism
Of our tariff schedules. We have not
heard so much Of the Argentine fiattery
of imitation in this matter. The Argen-
tines are sold on the idea of a protec-
tive tariff. They are determined to
build up their own industry behind
tariff wall, just as we did
Now, it happens that large por-
ton Of the British exports to Argen-
tina in former years consisted of COM
modities which, with the aid Of a pro-
tective tariff, could be manufactured
in Argentina itself. And increasingly
they have been: Argentine industry has
become Britain'S most serious COMPETE
tor for the Argentine market. The
American exports have continued to
grow, because they consist largely of
the products of mass industry, Of pro-
duction on a scale which Argentine
industry cannot reach because it has
neither the raw materials nor the enor-
nous domestic market.
There seems no escape from the
conclusion that with the development
of Argentina there will be a growing
market for the products Of American
mass industry, and an increase in the
demand for British specialtieS sufficient
IN h. If fhof avn ~ thu
Argentine market reserved by q tariff
wall for domestic producers. This loss
is limited. The gain to the British
may be enhanced by stimulating the
growth Of the country, thus increasing
more rapidly the demand for British
specialties. This Is to be done not by
stirring up antipathy against America
and American trade, but by uniting
with it to accelerate the pace Of Argen-
tine development.
Possible Source Of Danger.
When this unity Of interest is once
appreciated by the local British and
American colonies in Buenos Aires
there is reason to hope that they will
find each other as good company there
as they do in every other capital in
this hemisphere.
There remains one matter Of first
rate import to be mentioned in con-
nection with future American business
In the Argentine In view of the fact
that two of Americas leading financial
institutions have excellent branches in
Buenos Aires and number Of others
have close connections there, 1t may
seem odd to point to the financial
field as q possible source of danger to
American trade relations. Yet such is
the case
The second half of our stake in
Argentina-ancther $425. 1000, 000-is in
loans to the recommendation
provincial and municipal. This sum
is distributed in some 80 different
loans in the fiotation Of which 10 or
IL different American banking houses
were concerned.
The flood Of outside capital which
these loans represent began late in
1928 and continued until 1890. Then
1t stopped short. Under present world
economic conditions Argentina has
found 1t q heavy burden TO continue
the service charges upon them.
A debtor Is never expected to be too
fond of his creditor. but the relation
between a client and his banker are
or should be-on a different basis.
The client expects collaboration in the
regulation of his finances so that he
will not become over-extended during
periods of prosperity and will be able
to secure assistance In n time Of crisis.
But the bankers competed In loading
Argentina up with loans when the