Evening star., 1932-01-17
BY GASTON NERyAL.

IF the past two years have been
prodigal in political and economic
upsetS in Latin America, nothing
/ much different may be expected
from what 1882 has in store for the
countries on the other side OF the Rio
Grande.
AS the new year begins, the major
troubles appear, of course, to be OF an
economic nature. But politics during
the next IL months will play an i'm
portant role on the Latin American
stage Paramount political events are
scheduled to take place in the various
southern republics before the last leaf
falls off the 1892 calendar.
Before undertaking description OF
the chief political issues at stake, 1t
seems proper to mention the economic
difficulties which confront the Latin
American countries, for these are more
or less common to the majority OF them
and can, therefore, be stated In gen.
eral way. Besides, economic considera-
tionS obviously will have an important
bearing on the course and outcome OF
those political developments.
For nearly every one of the Latin
American countries the problem i'm
mediately ahead at the beginning Of
the year is the fultillment of their for
eign financial obligations. Because OF
the prevailing influence of international
credit ON their whole economic struc-
ture, the payment of principal and in
terest on their national debts Is OF pri-
mary Importance to the governments
of the Southern Hemisphere.
Value Of Exports Falls Sharply.
The rapid material development of
Latin America, which started immedi-
ately following the conclusion of the
World War, was financed by capital
borrowed from the United States and
Europe While normal conditions pre-
vailed repayments were religiously
made, and the legend Of Latin Ameri-
can defaults seemed to be thing OF
the past.
However, when the worldwide eco
nomic depression cut the prices of raw
materials in two, or in three, it appeared
evident that some of the Latin Amerl-
can countries would be unable to meet
their heavy external obligations. De-
pendent entirely as those countries are
upon their exports Of raw materials,
most of them upon one or TWO single
products, the extraordinary fall IN
prices, which has been the main char
acteristic of the present crisis, has re-
duced their income to an alarming
degree.
BY the end of last year the value OF
some of the principal commodities pro-
duced by Latin American countries had
declined not solely to pre-War levels,
but in certain cases to as much as 40
or SO per cent below. Under these cir
cumstances at least four South Ameri-
can nations-BoliVia, Peru, Chile and
Brazil-were obliged to suspend pay
ment of interest on certain of their
foreign debts during 1881.
Exchange Operations Curbed.
Other Southern republics have al
ready announced their intention of fol-
lowing that example, and practically
all of them are experiencing great diff
Guilty in meeting those obligations when
their income has been cut almost in
half. In an attempt to re-establish
favorable trade balance the Latin
American governments have instituted
control of exchange operations and i'm
posed drastic restrictions on imports.
Other financial problems which the
economic depression has brought about,
and with which most of the Latin
American governments will have TO
struggle during the year. may be thus