Show AN the united states spare south america during the next five years can it supply during the next 12 months south america wants these amounts within the period stated the needs of several of the countries are press ing they must get money somewhere when the war cloud broke at least halt a dozen countries were ing in europe for loans most of them were in the midst of commercial and financial crises due to economic causes which were at work the world over part of the loans wanted were merely to take up old obligations by new issues but in every case there was also a demand for additional capital which would have increased the total indebtedness the war has dealt a death blow to these expects alons in the famous jockey club at buenos aires where international finance Is discussed it Is now perfectly understood that with the european coun tries staggering for the next 50 years under the debts which the war will create there will be no more loans for south america the same under standing exists on the coffee exchange in rio de janeiro and on the bourse in santiago temporarily some of the south american countries win suffer as much from the war as the nations which actually are engaged in it they frill not only be unable to obtain money abroad but also their whole foreign commerce will be dislocated through the loss 0 markets some of the countries have met the emergency by following the example of the european nations and decreeing moratoriums harassed south american financial institutions and big commercial firms which were in difficulties may therefore bless the war as avoiding the necessity of forced payments but they will welcome it only as a means of immediate relief to debtors who otherwise wahl be forced into bank ss brazil has met the situation brought about brough the inability to float new loans by proved ing tor a new issue ot paper currency in addition to the abundant volume which already la in circulation cu time may demonstrate the wisdom or the of this action as an emergency measure but it shows the demoralization that the european war has caused south american public men and the diplomatic representatives of the different governments in washington who know how great the dependence haa been on europe and who understand fully the fiscal status of their respective countries in turn their eyes to the united states and it Is through them that the query comes as to whether the united states can supply a few hun dred millions capital the answer which may be given to the question will determine whether the united states Is to commercial supremacy and to dominate south america financially european financiers who until the new york stock exchange was closed were getting gold by unloading american securities in their look ahead are now doubtless revolving the same question as to what the united states may do in the way ot financing south america to them the question takes the form of a query whether any of the 2 indebtedness of the south american governments can be shifted to the united states and it so how soon and under what terms T two billion dollars represents in round numbers what the south american countries owe in the form of public debts what may be called the national debts do not foot up this sum but the municipal and state or provincial debts soma of which are not guaranteed by the national govern ment bring up the total all the south american countries have had the borrowing habit some of the weaker and more reckless ones have given the whole continent a bad name yet the truth is that in view of resources and natural wealth and the rapid development that has been going on 2 Is not an extravagant public debt total it will be found moreover that the very large proportion of the debts has been created by the countries which are solvent and which scrupulous ly meet their obligations since the international imbroglio in which the united states took a band venezuela has been paying off its debt until now the total amount outstanding Is less than colombia has what is known as a consolidated debt which does not exceed the country has managed to meet the interest in a manner to satisfy even the critical british foreign bondholders bond holders committee colombia it gets the 25 panama gratuity from the united states or not wants a general loan of like to build railways and rehabilitate the country generally rif r i f r has a public debt not exceeding 20 most of which grows out of the bonda issued tor the guayaquil Gu ayaquil and quito railway these are held in england france and the united states the provision made for the sanitation 0 aguaya guaya aull carried with it a prospective lean 0 10 A proposition which was brought to new york bankers a year ago was for a blanket loan ot 45 to 50 to take up outstanding obligations provide for the sanitation of aguaya guaya aull and to leave a balance far national purposes A new york banking bouse a few years ago tided ecuador over a stringency by mean of a temporary loan and realized a very handsome profit peru after the war with chile in 1881 was left with a debt so monumental that it never could have recovered it the burden had remained the country worked out of the situation by turning over the state railways under a long lease to the peruvian corporation which was also given the remaining guano deposits and various land con sessions cessions ces the peruvian corporation and the government have bad booro or less friction under the arrangement ant BO tar as its status as a borrowing na alon was concerned peru was able to face the world without a big debt during the last quarter or a century the total indebtedness incurred has not been large it now amounts approximately to 25 peru was in the market tor a loan when the european war broke out bolivia the country of south america left by the war with chile without a seaport also was able to start the peace era without a big national debt the amount of the alt terent forms of what may be called the bolivian debt la now between and paraguay on account of its numerous revola alons and po seibly for other reasons never has had much success in securing money from eu rope its present public debt Is between and 13 the opening of railway communications with buenos alres and other chapters of peaceful development have inclined european financiers to look more favorably on paraguay and a loan for the country was in prospect until a month ago now it paraguay borrows it will have to be in new york instead ot in london taking the group of countries which are not large borrowers out of ken it will be found that the bulk of the public debts of south american countries are those of the argentine republic brazil chile and uruguay athla group of countries owes europe that Is the governments owe europe more than they are able to meet their obligations though some of the loans may require refunding on new basis the borrowing nations are really the A B C or mediating south american countries which helped president allson settle the mexican am brogulo brog llo and uruguay the total ot the argentine obligations Is varla ble according to the amount of ce dulas or national mortgage bonds which are in circulation two years ago the argentine debt was approximately A year later it bad risen nominally to something more than a year ago argentina sought to float a new loan in france but the conditions were unfavorable A new loan oc the same basis would doubt leaa sull be desirable but the argen tine government would look to new york rather than to paris or london tor funds brazils various debt issues now approximate there have been loans or public am prove menta and other objects brazil as a vast country greater in size than the united states with undeveloped resources the extent of which Is not yet known has been a free borrower within the last year there have been various propositions tor new loans to the old ones it Is not likely that any brazilian loan can now be floated in europe and none Is therefore likely to be sought by the government later when the inevitable readjustment takes place brazil most likely will seek to place her loans in the united states chile now has outstanding obligations in the nature ot public debts to the amount ot the country has borrowed largely on the underlying security of the nitrate beds and the revenue to be obtained from them the european war interferes with the demand tor these ferell aizers and a temporary result may be that the workmen in many of the nitrate fields will be out of employment however the permanent source of wealth which chile possesses in the nitrate beds remains uruguay for an agricultural country may be assumed to have a pretty large debt since the total now amounts to yet the republic which Is on the gold standard and which has a dollar worth more than the dollar of the united states holds high rank in european elnan caal circles because of the certainty with which its financial obligations have been met A few months ago when an emergency loan ot was wanted uruguay made vain efforts to place it in the united states ultimately it had to be placed in london paris and antwerp at 86 by tar the larger part of the public debts of the south american countries Is held in england while some of the loans which have been placed through london have been apportioned to other monetary centers in europe and have been absorbed on the continent probably between seventy and seventy five per cent of the obligations remain in england these general facts about the debts of the south american countries and their distribution in europe are essential to know in judging of the probability of american capital at some period in the near future relieving europe of a part of its south american financial burden heretofore there has been no market in the united states the main question recurs and on it depend in large degree the future trade relations of the united states with south america can the united states spare south america during the next five years can it supply during the next 12 months |