Evening star., 1940-04-14

| harbor here for commercial purposes il
mountable difhculties, =" he observed.
The same traveller, passing through
Brazil, noted and described the India
| rubber tree" The United States, he
added, takes of Brazilian rubber in the
crude state over 25,000 tons annually.
AS to coffee, Brazil supplies one-half Of
all which is consumed in the civilized
world, but we should frankly tell the
reader, If he does not already realize the
fact, that it is most frequently marked
and sold for old Government java"
Today Brazilian rubber is the chief ex-
port of the Straits Settlements, and
Santos coffee sells on its own merits.
Growth of Trade.
During these SO years, our trade with
Latin America has grown, not only in
value but in proportion to our trade
with other areas. In 1890 Latin America
took tenth of our exports. Last year
it took II per cent. In 1890 the Latin
American countries obtained from us q
little over tenth of their imports. In
1898 they got from us one-third Of all
their imports.
The increase in Latin American pur-
chases from us has been most conspic-
uous in iron and steel manufactures and
vehicles, to which must be added petro-
leum and its products.
This Is revealing clue to the chang
ing nature of the economic life of the
southern republics.
In 1890 our leading imports from
Latin America included coffee, sugar.
hides and skins. tobacco, rubber, silver
ore, fibers, fruits and nuts, nitrate and
wool. Today coffee and sugar still hold
the leading places, but other commodi-
ties have displaced many of the items
just named. Now copper and other
metals, petroleum, bananas and cacao
are among the more important commodi-
ties we buy in Latin America.
Latin America has always been for us
more important source of imports than
market for exports.
While the statistics show that this
country and Latin America have i'm
portant trade relations, especially in the
Caribbean area, they also reveal the fact
that Europe and other sections of the
world comprise the most vital element
in the export trade of southern South
America, where meats and grains domi-
nate the export trade This fact serves
to restrict further material growth in
our sales to Argentina and Uruguay.
incidentally, it is worth noting that in
general this country buys much more of
Latin Americas goods than those 20
countries as group buy of ours.
Investments Increase.
In respect to American investments,
the Importance of Latin America has
grown greatly since 1890. At that time
there were few Americans sufficiently
venturesome to put money into the
Southern republics. This country was
still borrowing from Europe and the
dollar was being diluted with silver pur-
chases, which the silver bloc of that day
was preparing to enlarge.
| Today Americans have about $4,OOO,-
100000 invested south of the border"
and beyond. OF that sum, about one
fourth is in securities and the rest in
properties, mainly public utilities and
transportation enterprises, mining and
smelling, petroleum and manufacturing.
These investments are distributed prin-
cipally among Cuba, Chile, Argentina,
Brazil and Mexico.
The present European war temporarily
gives American manufacturers an ad-.
vantage in Latin American trade ass
compared with belligerent Europeans.
Although European competition after
the war probably will be stronger than
ever some of the gains we make in Latin
America may be retained. But this will
not mean that the character of our
exports will not change
Possibilities Of Future.
1t is safe to assume that such tropical
or subtropical products as coffee, sugar
and bananas, as also newer products like
carnauba wax, will continue to be sup
piled by Latin America. In the future
we may increase our purchases Of
deciduous fruits and vegetables and
forest and mineral products. The general
nature of our imports from Latin Amer
lea is not likely to change materially.
Latin American countries will continue
to be essentially producers of foodstuffs
| and raw materials and to consume some
| of the manufactures in which we excel.
But primarily, in the years ahead, we
| may expect the southern countries to
buy rather our heavy machinery, locono-
tives, automobiles and the like, with
further diminishing emphasis on the So
| called consumers goods. The reason lies
| in the quest for elf-sufaciency with
which the nations seem to be obsessed.
The first World War, and later the
exchange stringency which developed
with the great business depression Of
the 1930s stimulated in Latin America
the erection of factories, often with
American capital. In 1923 about 40 per
cent of our exports to Latin America
were consumers goods. Today these
goods comprise barely fifth Of our
exports to the South. This trend is one
| which goes only forward, and never
backward. Already, countries which
| after the war were buying such American
articles as leather goods, glassware, rub
ber footwear, textiles, automobile sup
plies, paper products and the like are
manufacturing q large fraction of their
requirements. As this tendency con-
tinues, the United States will have to
content itself with supplying the ma