Milford chronicle., 1939-11-03
Creating Permanent
Foreign Trade Markets

All United States exporting eyes
are pointed southwark where our
trade founders. as Europe. busy with
war. neglects her Latin-American
markets.
How to sell more goods to our La
tin neighbors. as well as how to buy
more of their goods, to the benefit of
all. is common question which has
inspired. multitude of varied ans
wers.
Some Washington statesmen be-
lieve that the sure, quick way to La
tin-American trade is through their
loan accounts Loan the money in
gobs." we are told. land they'll soon
be buying everything they need from
u.s."
Business leaders in foreign trade
fields who have watched foreign in
vestment3 and trade over the years,
and who have neither political the
ories nor programs to support, be-
lieve that the loan method is a pan
acea-not a real cure.
These leaders believe that the one
and only way to cure our stagnate
trade condition in Latin-AmeriCa
will be for our Government to give
legitimate United States foreign in
vestments full and proper protection.
L; this is done. it is their sure belief.
that United States investments will
continuously create new needs, new
standards and new wealth. which, in
turn, will create new and big mar
kets for United States goods; where
as loans are single shots in the arm.
have no permanent value, which may
be defaulted and in too many in
stances create easy morals.
One other way 10 increase Latin
American purchasing power would
be for the United States to buy more
of their goods. This is sound. but
it's slow and has many limitations,
such as our consuming power, COM
petitive trade demands of other ma
tions. etc.
The United States trade and in
veStments in Canada where invest
ments are protected and treaties are
kept. as compared with those of all
Latin-America. in many parts of
which investments are cOnfiscated
and treaties broken. all favor the be-
lief of foreign trade business leaders
This record shows that Canada,
where foreign investments are pro-
tected. loans repaid and treaties
kept, per capita annually bought in
the 1933-37 period $155.55 worth of
U. S. goods. Whereas Latin-America.
in many parts of which foreign in
vestments are cOnfscated, loans are
in default and treaties ignored. per
capita annually bought only $685.
during the same period. Our per
capita purchases from Canada for
the 1933-37 period annually averaged
$132S9 whereas those from Latin
America annually averaged S2O49.
The direct United States per capi-
ia investment in stable. reliable Can
ade is S17412-in Latin America it |
is S23. The purchasing power of |
Latin-America accordingly is far
lower than that of Canada. The field |
to tae south is wide open for United |
States investment which will create I
wealth and buying power and in turn |
will create greater permanent mar
kets for U. S goods But it never will |
be developed until u S investments |
get better treatment than now is ac-
corded them in many countries.
No statement more clearly and con-
reveals the fallacy of the
government loan way of creating
foreign trade tina nthis fact which !
official statistics show: Washington
would have to loan Latin-America
of the taxpayers mon
ey to create there a per capita pur-
chasing power equivalent to that
which private investment has slowly
created in Canada without a cent of
axpayer money. Moreover. if the
oan plan is followed a major part
If the SIS billion plus undoubtedly
eventually would join the $50 of
present defaulted Latin-American