The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-02-07
BY HARRY w. FRANTZ
United Press staff Correspondent

United Press staff Correspondent
WASHINGTON, Feb. Like the
tabled Atlantis" South America
soon may become a "sunken CONT
nent' so far as United States ex-
port trade is concerned. unless
radical steps are taken to regain
that once rich commerce.
The present slump and the po-
tential opportunity Of United States
trade in Latin America strikingly
are indicated by the fact that ex-
ports to the tiny island of Puerto
Rico, with 100000 people, now are
greater than shipments to such
wealthy and populous countries as
Argentina, Brazil, Peru, Chile,
Mexico and Cuba.
If figures do not lie, the export
statistics strongly suggest that there
has somewhere been a misdirection
of United States commercial policy
toward the twenty American re-
publics.
Vast Slump in Exports
A long series of Pan-American
conferences, President HOover's
goodwill trip to South America
and immense capital investments IN
the southlands did not stay,
slump in United States export trade
to South America from $3.50 100000
in 1929 to S307 100000 in 1881 and
again to $97, 900 in 1882.
In the year 1882, United States
exports to Puerto Rico alone were
valued at $48, 100000, a substantial
slump from previous years. But
this figure compared with exports
of $32,575,000 to Mexico, $28600,00O
to Cuba, $31,669, 900 to Argentina,
S28,6O0,OOO to Brazil, $3,568,000 to
Chile, and $3,964,OOO to Peru.
The drastic slump in United
States exports to South America
was due to the low purchasing
power of those countries, resulting
from the fact that their exports
products encountered falling prices
and fewer purchasers in world
markets for industrial raw ma
terials and foodstuffs
halSe 1rdue ODStdCleS
The depression in markets for
South American commodities partly
was due to commercial causes and
partially to the multiplication of
artificial trade obstacles in the
United Sttaes, Great Britain and
many countries of Europe.
Important Latin Anne Ican COM
modities, formerly FREE listed in the
United States, but since 1880 sub
ject to tariffs or excise taxes OH i'm
ports, are petroleum, copper, long
stable cotton and cattle hides.
Duties were raised in 1880 on such
important articles as grains, live
cattle, canned meats, flaxseed and
caSein.
United States exports to South
America, experts believe, will revive
when international commodity mar
ketS offer higher levels to basic
commodities. The world economic
conference offers The earliest sub
stantial hope.
In long range, reciprocal trade
pactS may help the United States,
but the history of such attempts has
not been encouraging. Reciprocity
has been studied and agitated at
intervals since the Pan-American
conference in 1881, without meas
ureable concrete results, except the
United StateS-Cuban reciprocity
treaty of 1904, product of special
circumstances.
The underlying difficulty has been
the United States desire to protect
domestic agricultural and live stock
production against external Compe-
tition.
Recently, the growth of sentiment
here for metals and minerals pro-
lection, particularly copper and Pc
troleum, has introduced a new po-
| lltical obstacle.