Diario las Américas., 1958-06-17
Know thy
NeighborI
By ANTONIO RUIZ

COLOMBIAN sound and modern
banking system was established In
Colombia with the enactment OF
the law creating the Bank OF the
Republic This is the central bank
of issue, with capital and reserves
in excess of fifty million pesos.
In addition to u~Gifying and Stabi-
Iizing the country's monetary sys-
tenn the Bank Of the Republic has
been abb to maintain elasticity in
the supply of currency and credit
and to regulate foreign4echange ba-
lances.
In addition to the Bank of the
Republic there are fourteen COM
merclal banks, four OF which are
foreign, three mortgage banks, and
five sem :-officia. institutions crea-
ted specifically for the financing
of mining operations, agriculture,
irrigation and identification pro-
jects, public housing and industrial
development All commercial, and
some non commercial banks are
member banks Of the Bank of the
Republic All are subject to the re-
gulatlons established by the Supe-
rintendent Of Banks.
Colombia's budgetary system was
established IN 1928. The expenditu-
res of the National Government tri-
pied from 1910 to 1859, as did the
level of national income. With e
ference to the investment Of TO-
reign capital, the Government is
sued an important decree in Au-
gust 1851 substantially modifying,
its previous policies, and granting
virtual freedom 10 all foreign in
veStors TO invest and withdraw ca
pital without restriction, and to ia
Ike out earnings freely.
The purpose of these regulations
was to speed up the expansion and
Investigation of the national eco
nomy by encouraging foreign capt.
tai investments. The purpose of
these regulations was to speed up
the expansion ard Investigation
of the national economy by encou-
raging foreign capital investments.
The revenues Of the country are
derived principally from customs
duties and direct taxes on perso-
nal and corporation income, excess
profits, inheritance and properti
taxes.
Before 1910, Colombian exports,
consisted almost entirely of agri-
cultural products, such as coffee
and minerals, gold and petroleum.
In 1889 these groups accounted
for about 95 percent of the total
value of Colombian exports. In the
years Immediately preceding 1910
Colombia usually had a favorable
export trade with the world, in
GLIDING the exports of gold. About
three fourths of Colombian exports
went TO Western Hemisphere ma
tons, and about one fifth to Euro
pc. World War II had a marked eff
feet ON the volume, @ue, compo-
sition and distribution Of Colon
bias foreign trade.
By 1912, the Western Hemis-
phere had become virtually the
only outlet for Colombian exports,
taking more than SO percent of the
total exports. In that year, the Uni
ted States alone took 81 percent,
compared to so percent of the to-
tai N 1888. Although exports de-
clined greatly in volume after 1910,
their value increased, principally
because world coffee prices were
then nigh. The new decline in CO.
flee prices is causing a serious cri-
sis for the olombian economy.
Colombia is one of the coffee
producing countries holding talks
aimed at the sterilization of world
coffee prices, which are of vital i'm
portance for the general economy
OF that South American Republic.
Meanwhile, grea. efforts are being
made to promote industry and d.
versity agricultural production,
to give the country a better varie-
ty OF sources of income taking it
from the one-crop economy catego-
ny.