Imperial Valley press., 1942-03-02
CAPITAL TALKS
by
Peter
Edison


WASHINGTON. Mar , - It's
pleasure TO report that some
Of the trade battles Of tins war are
being won b. our SIDE.
According 10 one political theory
you know. all wars 2re supposed
20 be fought over nothing more thar
International trade rlNalFleS The
countries concerned merely take up
aims when commercial competition
reaches such 4 point o; Globe -lrot-
ting travelling statesmen can't dispose
If thcic nations surplus production
o. can't buy enough of the other
countries merchandise by peaceful
means and have to fall back on the
shotgun method. A good case can
be made for that theory in the
present brawl if YOU say Hitler
went to war simply to give Germany
control of western world trade, ard
japan ditto to get control OF Or
iental trade.
Whether YOU agree with that
over -simplified analysis or not,
if ever there was a war that was
fought with commercial battles
as we'll as military and naval
battles, this is il. The text
book name for these conflicts
is economic warfare and in this
field of strategy il is now be-
ing revealed that the NaZiS
don't know all the tricks.
Consider for INSTANCE, some OF
The recent developments on the
South American front alone II Is
mere that United States gumShoe
forces have contacted the enemy IN
a bic way. Most spectacular OF the
battles fought in this sector have
beer with the so-called black
list" as the principal weapon This
LIST OF certain blocked nationals
mas DESIGNATED 10 those firms with
axis control and sympathles ana has
prohibited trade with them. FIRST
REPORTS Of casualties Inflicted by
this weapon are beginning 10 trlcklt
back and they read well.
WORKS WELL IN MEXICO
In Mexico. some blacklisted firms
with assets of more than l6 million
pesos have been forced into bank
ruutcv. That leaves the way open
FOR Mexican business houses TO DICK
ND the business and so strengthen
Mexico's internal position AXIS
firms which have surviHed the
blacklist have been those with eX-
ceptionallv strong reserves, but the
word is now that even these COM
panies will be forced to the wall
within six months OF so.
Similar reports come back from
Cuba. There. cut Of some 90 pfncl-
nal axis firms blackllSted, 10 nave
been forced out of business ana the
t.ade of 26 has been completely
raralyZed. Other business houses al
fected have survived only by
Grange OF ownership or reorgaEl-
zation in which Cuban capital mas
taken over. .
In Guatemala. one of the princl-
nal German businesses affected mas
heen in the insurance field Govern
ment decree here simply put all
German insurance companies, "illcA
had the bulk of the business, under
q government trusteeship BOOKS
files. funds and all assets were tax
en- over. n
Trade balances of nearly all
the South American countries
have scared in the past year
increased war production pur
chases of raw materials by the
United States being entirely re-
sponsible.
Rrazirs favorable trade bal
ance. for instance, jumped from
$40 billion in 1910 to more than
S65 million in 194l. No wonder
Brazil leans this way.
BOLIVIA BUILDS SURPLC
Boliyia's financial position has SO
innroved that the country has been
reported TO have Sl5 bllLolF sur
plus on deposit in New York. some
of this surplus has been used to
buy up quietly Bolivian bones az
the current. greatly reduced mar
vet value Bolivia, in other words,
IS retiring her national deDt al
considerable saving 10 the public
treasury. Another indication of Bo-
livian affluence was the receEt
agreement. subject to later ratIll-
cation by Bolivian government. uI!-
der which a payment Of SD mil
lioin will be made to Standard Oh
Of New Jersey for claims datlnE
back 10 1887 when Bolivia na'!oni-