Evening star., 1939-01-01
World Will Compete
For South American
Trade in 1889
U. S. Loses Ground as
Jopon and Germany
Show Coins
BY Cambridge Associates,

Inc hight for South American
trade will be intensified next year.
European nations, frenziedly SEEK
ing for raw materials and the credits
with which to buy them, look avid
ly upon the natural wealth of the
continent below us. The United
States will have no less at stake in
the contest. Always we have re-
garded South America as our own
backyard
This in spite of the fact that,
while we buy much more from nine
out of ten South American coun-
tries than We sell to them, our trade
with all of them has decreased more
than Great Britain's or Germany's
within the last 10 years, and the
same period has brought a tre-
mendouS increase for Japan.
Realization of this fact is fairly
dominant now. Our delegates who
are attending the eighth Pan
American Conference at Lima as
this is written are very conscious
of it. They are trying to paint a
picture OF pan-American solidarity,
peace and plenty against a dark
background of European poverty and
politicl turmoil. How we'll they
can succeed remains a question.
So far the effect of the good
neighbor' policy and the reciprocal
trade pacts has been largely nulI-
fled by several factors.
Before discussing these factors,
hnu-ltynr
| are in order. Between 1927 and
1886, the latest year for which COM
plete figures are available. South
American purchases of American
| goods fell off SO per cent. During
the same period. Great Britain's ex-
ports fell off 53i2 per cent and Ger
many'S only 10 per cent. Japans
exports actually increased to the
startling extent of 255 per cent.
Imports Above Exports.
| 1t is true, of course, that the
United States still holds the lions
share of South American trade. But
we buy approximately a third more
from South American countries than
we export to them, and the steady
| trend toward the loss Of our trade
advantage does ont speak we'll for
our sales methods.
The reasons for this trend are
various. 1t has been said that we
have become inept as foreign trad
ers, that our export market only
| becomes of concern when our
home market is in depression. The
blunders of our foreign sales at
tempts, crude as they may have
been in individual cases, seem to be
overemphasized, however. 1t must
also be recognized that European
investments in South America, and
particularly Great Britain's, equal
or exceed our own. In the nations
most important trade-Wise. there
are large permanent colonies of for
eign nationals, while American resi-
dents are few in number and for
the most part temporary. In Brazil,
where this is most evident, there
are less than 1000 Americans, but
over half a million Italian-born
residents, nearly 10000 German
born residents, and a steadily in
creasing colony Of Japanese, who
number over 10000. according to
latest estimates.
German Aggressiveness.
The heightened spirit Of national
ism has meant an increase in the
effectiveness of these residents as
promoters of goods not only of
homeland products, but the products
Of their homeland's axis partners.
German aggressiveness in the
struggle for South American trade
has won some triumphs and will
probably win more. The way, how
ever, is not all paved with roses.
Last year, this aggressiveness re-
suited in an interruption of all trade
relations with Brazil when the
South American country, eXchang-
ing goods for blocked marks. OBJ
jected to the Reich's dumping of
Brazilian goods on world markets
to get foreign exchange credits else
where. Similar incidents can very
likely spoil Germany's smooth prog
ress in the future. but European
ties, the ease of communication with
Europe, and the ability of other
countries, either because of lower
| poctc ~. r,oro fouoroh1o