Evening star., 1939-12-17
Is y. S. Good>Neighbor Policy
Yielding Results in Americas?
Uncle Sam Is Sentimental Fellow Who Gives
Much, and Apparently Is Getting
Little in Return
By Herbert NJ. Rraffer.

NJ. Rratter.
the entire price Of the securities! At
present low quotations considerable
amounts of Latin American bonds have
been bought up by the defaulting gov
ernments themselves.
In the sphere of commerce, American
exports are handicapped by exchange
and import controls in many Latin
American countries, some Of which grant
to European goods preferred position
over American merchandise seeking to
enter the country Efforts to procure
trade agreements with Argentina and
Uruguay have been conspicuously fruit
less.
L. S. Investments Suffer.
Elsewhere American direct invest
ments have been bodily taken over or
threatened by some Latin government.
Bolivia has nationalized American oil
lands. Mexico for years has been taking
American-oWned farm lands and in 1888
seized an estimated $3.50, 900 900 of Amer
ican oil properties. Latin America would
benefit by further American investments
in mining and manufacturing yet the
trend toward economic nationalism in
that area has badly frightened American
capital.
Despite the discouraging failure, the
United States goes ahead with its am
icable aims in Latin America, and even
the countries which have been least
promising of results continue to receive
our official good will, Mexico no less
than the others.
Mexico continues to be our pampered
"Pecks Bad Boy" One wonders how
much it might obtain for us if only it
reciprocated our pan-American impulse
OF all the Latin lands, Mexico has
been very special beneficiary Of Amer
lean benevolence. For, not only does it
benefit from our goodwill toward Latin
America in general, but 1t is the chief
foreign recipient Of our foreign silver
subsidy being the leading silver -produc-
ing country of the world. Silver is one
of Mexico's major exports, and an i'm
portant source of income for the nation
and the Mexican government.
! McAlCO anu SIVeEs
No one can claim that the Silver Pur-
chase Act of 1884 was passed for an un-
selfish motive. 1t is true that the Mex
leans worked hard to get us to adopt
the program, just as they are working
now to get us to retain it. But, how
ever unsound its economics, that silver
program admittedly appealed to Amer
lean export and agricultural interests in
1884, as we'll as to the silver block which
fathered it.
Now, however, after more than five
years of demonstrated economic folly, 1t
is matter of record that the foreign
silver program depends for its continued
existence only on the administration S
desire to do something Mexico wants
done. This is quite plainly set forth in
the congressional debates for 1899. The
Government is positively afraid Of Of
Tending Mexico. This over-cautious at
titude is hard to understand.
Mexicos dependence on bullion and
other business with the United States
is indicated by such facts as these:
OF Mexico's total merchandise exports
amounting to $4,000 900 in 1885, 81 per
cent went to the Unites States. OF its
total imports, $4,000, 900, So per cent
were supplied by the United States.
Mexico in 1888 produced $4,000 ounces
of gold valued by Washington at $32,-
100000 and 100000 ounces of silver
valued by Washington at $34,83o,ooo. Fol
both of these metals the United States
is virtually the only market at current
prices, and for both Of them 1t pays an
artilcially high price.
The American silver policy has enabled
Mexico to get at least $4,000, 900 more
for its silver production than would
otherwise have been the case. Since the
silver program started Mexico has re.
ceived approximately 1920, 900 900 for it,
output.
Tourists Help, Too.
Nor are these the only items. In 1885,
American tourists left $44,o0o,ooo in
Mexico This business with American
tourists was almost one-fourth as larg'
as Mexicos entire commodity exports
, that year. And the tourist trade il
growing every year. The interference O
the war with travel to Europe can onl!
serve to increase Mexico's business will
American pleasure travellers, whom
) Washington allows to bring home dut!
free 500 of merchandise apiece. N,
such liberal policy is followed by Mexico
Considering these facts, it is matte
for wonder that in the country's owl
l self-interest Mexico's policies towart
4 this country are not less unfriendly.
is like case of the small boy kicking hi
r big brother in apparent assurance tina
: the big fellow won't dare to retaliate.
Mexico's seizure of the oil properties
! for example, is admittedly within tn
0 country's recognized rights, but only, a
1 our State Department has phrased it,
. prompt and just compensation" is made
' Now the Mexican Supreme Court ha
t ruled that these properties were legall
4 seized, that no payment need be mad
0 for oil in the ground, and that paymen
D for above ground oil properties need no
0 be made for 10 years. In view Of Mex
4 icos past record In meeting such claim