Evening star. [volume] (Washington, D.C.) 1854-1972, 1940-08-26
South America Gains
Refugee Capital
From Europe
Brazil Already Feels
Benefit of important
New Business
BY J. G. DONLEY.
Consolidated News Features. J

NEW YORK, Aug. 26.-South
American countries, although large
proportions of their production of
hides and grains and meat may go
begging for markets with European
customers cut off, stand to gain as
an indirect result of the war GER
tain national assets which may later
prove to be of inestimabie value.
For it is reported in local foreign
trade circles that, as happened in
Canada for several months before
the war broke out, tide of refugees
and refugee capital is setting toward
the New World. With Canada a bit
cagey along immigration lines now
that the war is on in grim earnest
and with our quotas setting up GER
tain barriers, this tide is striking
the shores of South America.
The amount of capital coming in
is quite important at a time when
South American countries are raw
material poor" because they have
plenty, but cannot sell it. In the
long run, however, it seems likely
that they will gain more lasting ben
eft by reason of the industrious,
business building, creative personal
characteristics of the new citizenry
being acquired because war-torn
Europe has clipped their horizons
and driven them to lands of new
opportunities and new hope.
Orders Placed in L. S.
In recent weeks orders for a great
variety of our manufactured prod
ucts have been reaching this center
from Brazil. And the money has
been ready to pay for them. In
quiries on the part of local exporters
have turned up the information from
their representatives down there that
wealthy refugees from France, the
Netherlands, Belgium and other ma
tons now under the iron heel of the
dictator have been flocking to Brazil.
Some reports have it that this tide
of refugees has this year brought
into Brazil as much as SIS 900 900,
and perhaps more.
It is said that the money portion
of the capital inflow-with a por-
ton OF course in the form of jeWelry
and other valuableS-has been with
drawn from Swiss banks where it
was stored in anticipation of later
emergencies. Refugee money in
London and also in the United States
is more or less frozen" but Switzer-
land so far has set up no bars
against Withdrawals or funds by
foreign depositors.
American representatives in Brazil,
giving some indication of the amount
of foreign currency and foreign ex-
change being brought into the coun-
try, say that the equivalent of at
least $4,000 worth of such funds is
offered for sale in the open market
there every day.
Outsiders Send Funds.
1t is also said that the flow Of
capital for investment in Brazil
where new opportunities are con-
stantly springing up is not limited
to funds brought in personally by
former Europeans bent on sending
down roots and establishing them
selves permanently. The flow Of
private investment funds sent in by
outsiders recently is said to have
been at the rate of $4,000, 900 or so
annually.
The permanent gain to South
American countries will come, of
course, from those refugee business
men who, uprooted with considerable
personal financial losses from their
established enterprises in the Old
World, set up in business anew and
by force of circumstances redouble
their efforts to re-establish their
fortunes. An influx of immigrants
Of that type was welcomed by
Canada last year.
Among other industries, the war;
blown flight of hot money" or
refugee capital, brought Canada a
shoe factory, a plant for making
specialized products from wood pulp,
a beet sugar refinery, glove-making
factory, an art pottery, a wooden
goods factory, and a plant for the
manufacture of aluminium cooking
utensils.
These new enterprises established
in the Dominion by moneyed i'm
migrants were among many reported
before the outbreak. of war last
autumn. And it was estimated that
the eXiles from a Europe which was
then only beginning to be rolled out
according to new pattern by the
axis juggernaut had brought in up
ward of $4,000, 900 for investment in
their own enterprises in scattered
developments all the way across the
Dominion to Vancouver.