Evening star., 1933-02-12
BY GASTON NERVAL.

D1 OAS ION NEhNAL.
TINE world depression and the high
tariff walls of Uncle Sam have
undone in three years the work
L of business men and pioneers in
inter-American trade during the
last two decades. Statistical figures re-
Gently released by the Commerce De-
partment show that totals involved in
export and import trade between the
United States and the Latin American
countries are back where they we're
more than 20 years ago.
While in the last year B. d. (before
depression) inter-American trade in
volved nearly two billions of dollars, in
1882 it had shrunk to a total far below
the average given for the period i'm
mediately preceding the World War.
1913 Starting Point.
The year 1913 is usually considered
the starting point in the tremendous
development of inter American trade
which became one of the characteristics
Of the postwar period. That year
United States exports to, and imports
from, Latin America amounted to a
little over S800,000,000. The totals for
1882 have dropped to nearly one-half
of the 1913 figures.
One item alone will suffice to illumi-
nate the situation. Exports from the
United States to South America, only
which in 1913 amounted to S178, ,489, 900,
and in 1929 had passed the half
billion mark, declined in 1880 to 1887 =.
508,OO0, in 1881 to $158,684, 900, and
last year were valued at less than one
hundred million dollars
Exports to Argentina alone were in
1929 almost twice the 1882 total export
trade to all of South America. Last
year Argentina bought only S31, ,669 900
from the United States. Exports to
Brazil dropped from over 100000, 900
in 1929 to $28, 100000 last year. Ex-
ports to Chile from $40,O00,0OO to less
than $4,000,000. Exports to Peru, from
about $25,0C0000 to $3,964 1000.
A similar thing may be said Of ex-
pots to other parts of Latin America.
While Mexico received more than
S1OG. 100000 of United States goods in
1924 in 1882 it bought only $32 ,575 900.
Cuba imported nearly Sl00,0000 900 less
from the United States last year than
in 1929.
Other Cases Disheartening.
And so on. The figures of the other
countries are equally disheartening
o.
imports, goods sold to a particular
country, or raw materials bought from
another, wherever you look, the record
shows the same catastrophe decline.
What has brought about this state
of affairs?
Evidently, the worldwide economic
depression had something to do with
it. AS a matter of fact, it had a lot
to do with it. Trade figures all over
the world have dropped in the last
three years, as result of the Shrinkage
in the buying power of all nations.
This shrinkage has been particularly
felt in Latin America, where the eco
nonic structure of nearly every coun-
try is dependent exclusively on one or
two specific commodities. The price of
these commodities having trmbled to
record lows, Government and private
revenues have suffered tremendous
cuts and general economic disar-
rangement has ensued.
In some of those countries these
financial difficulties have not stopped
short Of political turmoil. Undoubtedly
precipitated by economic factors, we
have recently witnessed series of in
ternal upSets in that part of the world.
Just about the same time that the
depression set in the flow of foreign
money which had been poured into
Latin America from Wall Street in the
most extravagant manner-mostly ex-
cessive and unsafe government loans
was suddenly cut off.
Forced to Cut Expenses.
Deprived of profits by the slump in
the value Of prime commodities, and
then deprived of the credit with which
they had been paying old debts and
buying from abroad, the Latin Amer
leans found themselves forced to cut
down their expenditures to a minimum.
But the world depression is not the
only factor responsible for the unpar-
alleled decline in inter-American trade.
The depression alone could not have
brought it about, because the depres-
sion has not set the clock of those
countries economic conditions 20 years
back. And that is what has happened
to inter-American trade in the last
three years.
If, besides, this fall in the trade of
the Americas is out of proportion-as
it actually is-with the general fall OBJ
served in other regions of the world.
and II the drop recorded in Latin
American trade with Europe, for in
stance, iS-aS it is-much smaller, then.
obviously, there must be another rea-
son to account for the tremendous set
back in the commercial relations of
Uncle Sam with his 20 Latin American
neighbors.
The reason is not hard to find. It
is contained in a single word, which
has become exceedingly popular of late
with financial experts studying the ills
of the world. The word is tariffs"
If you doubt it, take the fgJhes for
exports to Puerto Rico, tiny island
with not more than 100000 inhabi-
tants, and compare them with those I
have quoted for Latin American ccun-
tries much larger and much wealthier,
such as Argentina, Brazil, Mexico,
Cuba, Chile, Peru.
Exports from the United States to
Puerto Rico were last year larger than
those to any of the countries men