Show The Problem of Ra Raw Materials il By ay EDWARD MEADE EARLE Historian and Educator Why is there a comparatively small forI foreign for for- I eign investment in American controlled SUPplies supplies supplies sup SUP- plies of raw material An authority auth surveys the field and sounds a warning Only a comparatively smail small proportion of American American Ameri Amen can foreign investments at the present time is to tobe tobe tobe be found in American conti controlled oiled iEs iE's of raw materials That is largely because of the heavy hevy demands upon American capital capital which come come from I other sources and antI which are much more attractive to the investor In as for ample example the huge r reconstruction reconstruction recon recon- on- on loans in Europe However the proportion of or certain vital raw materials which are now in inthe inthe th the hands of American Investors has been growing larger r For Tor example the nitrate supply In Chile is now about 15 per cent In the hands of American capital o- o as liS compared with only about 2 per ent cent fore be-fore the war w and American capital capita Is still till bu buying its way into Chilean n nitrate fields fJeld The same thing thins is true of ot tin in iii Bolivia in n Peru Teru and sugar in Cuba It If It be be- betrue true in the tho future that increasing amounts of American capital will find their way into sources of ot supply of f raw caw materials controlled largely 1 o or cx- cx clush elusively ly by Americans it will certainly be true that such Investments will vIll meet st with I resistance re- re from a variety of cf sources In the first place you jou will have politically weal weak countries like Mexico which fearing the International complIcations complications complications of foreign Investments within their borders willi proceed t 16 to adopt legislation hostile to such foreign foreign for for- foreign eign Investments Indeed as far as Mexico rs ts concerned con con- cerneil such suc-h legislation Is no longer a probability It Is It a fact And Mexican will be heightened In proportion ns liS American capital c with governmental go support finds its way into Mexico Politically developed countries like Canada fearing fearIng fearIng fear- fear Ing the depletion of their natural resources by the American investors Investor will wili proceed to adopt le legislation ln j I In the form of export taxes or embargoes upon the of ort such suh raw materials outside tho r own borders Indeed as far a as Canada Is concerned I that is not a IL suppo supposition It is already a 0 fact If such a a. policy be pursued by Canada and other nations nations nations na na- na- na it will involve e e not the Importation of raw materials Into the United States State from u-nm abroad but the tho migration of American industry y from the United States to the foreign countries concerned I In the third place there will be r resistance re from hl highly industrialized nations like Great Britain with colonial empires from which they wish to draw their supplies of raw ma materials Such resistance will not be without justification The British may argue that If it is legitimate leg for us to keep British h goods out of our market marlet by a protective prote tariff It itIs Is proper propel to keep keel American capital l out of their territories by any legislation which they ma may see fit lit to adopt Even in thO-o thO areas which arc are under American political control powerful resistance wilt will be felt feIt It was discovered for example by American rubber manufacturers that the proposal to turn the Philippines Philippines Philip Philip- pines into a source of supply of rubber was one which the Filipinos were not prepared to accept American m Investments In rubber plantation obviously would con constitute a reMOn son reason why the should not be released from American economic and political control This will VIII leave lea to the United S States as a free freefIeld freefield field only those areas like Liberia which can forcibly forcibly ford ford- bly be brought under r American control If It necessary It It is trite to to say that the problem of raw materials Is an rather i-ather than a political problem But flut It Is Is- true nevertheless In In- proportion pro as this Is made political rather than an nn economic problem lam lem it becomes impossible ble of solution The policy which the Great Gnat Powers Poi have ha been pursuing up to the present time is not merely a problem of imperialism imperi Imperi- narrowly defined it Is A of mer- mer It Is a I needles complication atlon of International international international inter Inter- national tics poll which distributes around und the wo world wo-ld ld a n considerable of ot political dynamite lIl likely elY to go oft off at unexpected times and with disastrous results I COP T Copyright 1826 1126 Cosmos Newspaper Xe Syndicate 8 A |