Evening star., 1932-09-18
Exports Have Been Reduced
by so Per Cent Since 1918,
Says Economist.
STAKE IN TEN REPUBLICS
PLACED AT $4,000, 900, 900
Injudicious Use of Funds by Bor-
rowers Is Cause of Credit Col
lapse, He Says.
BY DIR. MAX WINKLER.

Special Dispatch to The Star.
NEW YORK, September 17-Three
billion, two hundred million dollars is
Americas stake in the 10 South Amer
lean republics, compared with sl73,-
100000 prior to the war, a gain Of
more than 1,76O per cent During the
same period Great Britain's invest
ments in South America recorded an
increase OF less than II per cent.
the slogan trace follows the
the United States rade may have
followed the dollar, but it was not
American trade. 1t may have been
British, or French or German trade
America was contented with watching
her investments increase at rate
unparalleled in the history of lending
nations
While her trade with the South
American republics amounted to close
to $1,000, 100000 in 1913, it declined to
substantially less than $500, 0,000, 900 last
year. In other words, for every thou
sand dollar gain in Americas invest
ments in South America during the
period 1913-l931, her trade fell off
SITS.
Decline Is Analyzed.
The collapse Of Latin Americas credit,
resulting from the catastrophe drop
in the price of commodities, was re-
hected adequately in the commercial
relations between the United States and
South America. The figures follow:
United States M exports to South America.
&465 7o4O0o
United States imports from South Amer
ica: ica:. issl, 1901 277,O0o 1880, s433.5l6.0oo
Total United states-South American trade
1891 1891 sIs5 selooo 1880, s77l124.ooO; 1918,
United States investments in South Amer
ica: 1881: s3.2lS 100, 900; 1890. s30l3,s 600, ,o0o
1913. sl73.000 900.
American sales last year to the South
American republics showed shrinkage
compared with the previous year of
almost So per cent and of somewhat
less than Sc per cent compared with
1913. Purchases from the republics de-
clined less markedly the shrinkage in
1881 amounting to slightly less than
29l4 per cent, compared with 1880,
and TO Ais per cent compared with
American imports from South America
in the last pre-war year.
These figures are appreciably in ex-
cess Of the decline in the total foreign
trade of the United States for the same
period. Last year, American imports
from the rest of the world aggregated
s2,089.800, 900, compared with S3.060.-
100000 in 1880, and s1,792, 100000 in
1914 shrinkage from 1880 of about
3l& per cent, and gain of more than
1612 per cent compared with 1918. Ex-
ports declined to s2,423, 100000 in 1881
from S3,843 100000 in the preceding
year, and s2,484,000, 900 in 1913
shrinkages of 36.93 and 242 per cent,
respectively.
1t is of interest to note that the
decline in the total trade of South
America was far less marked than the
shrinkage in the commerce of her more
powerful northern neighbor. Details
are given hereunder:
South American exports:
1885 100000 sI.ss2.5OSo.oo .12Os go, 900
South American imports:
sssssooooo sssa sssS 900 l5s lsas 80 900
South American total trade: ,o,,
s2s53Soo, 900 500 900 sass. ooo. 900
Exports of merchandise by the South
American republics declined last year
about 1912 per cent, compared with
1880 fgures-a shrinkage Of only about
a third that registered by the United
States during the same period. Com
pared with pre-war figures, 1881 ex-
ports showed a gain of slightly more
than Is per cent, against loss of
about 21a per cent for the United
States.
Imports Also Decrease.
Imports, which are perhaps a more
dependable barometer of the economic
status OF nations, fell off more sharply,
the loss last year amounting to 24.85
per cent compared with 1880, and to
more than 13 per cent compared with
1913. In other words, the situation in
South American countries in 1881 may
be said to have been materially worse
than it was before the war, despite the
billions of dollars which have be =,
poured into them, thanks to the liberal
ity displayed by American underwriters
and investors, both individuals and
institutions.
The difficulties which face South
America are not the result Of the flow
of funds into the Southern republics,
but rather the injudicious employment
of such funds. If the billions of dol
lars which South America borrowed
abroad in the last decade and a half
had been employed for revenue-pro-
ducing purposes, the chances are that
she would not have borrowed quite SO
much and, what is even more signifi-
cant, the capital obtained would not
have led to the creation of debt far
beyond the budgetary capacity Of tbs
nations to meet.
If America is in earnest about restor-
ing for her people an important market,
with 110,000,000 consumers domiciled
within easy reach, an effort should be
made forthwith to readjust South
Americas obligations in accordance
with capacity to pay rather than wait
for the return of the price of commod-
tiles to the levels which obtained dur
ing the halcyon days of 1920-1930. 1t
should also be pointed out that coun-
tries are more anxious to adjust de-
faults which are still fresh, than after
q number of years when they have
grown accustomed to them and take
them for granted.
Copyright, 1882. by North American News
paper Alliance, Inc)
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