Show ki m V 0 v IC lilt na M JN 0 V 1 0 av 2 R i JIM 1 ag CAP 42 A PA 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 0 several of 0 the countries are pressing they must get money somewhere when the war cloud broke at least halt half a dozen countries were negotiate 4 ing in europe tor for loans most mosi of them were in the midst of commercial and financial crises due to economic causes which were at work the world over part of 0 the loans wanted were merely V to take up old obligations by new issues but in ev every ery case ther ewas also a demand for additional CaPI capital LUI which would have increased the total indebtedness the war has dealt a death blow to these expectations 4 in the famous jockey club at buenos alres aires 1 where international finance Is discussed it Is now 4 perfectly understood that with the european countries staggering for the next 60 50 years under the 12 OW debts which the war will create there will be no A N more loans tor for south america the az kak same un understanding der 1 1 exists on the coffee exchange in rio de iv vw i iv yv janeiro and on the bourse in santiago temporarily some of the south american count countries ries will vill suffer as much from the war as the nations which actually axe are eng encased aed la in it they will not oriff ony bo be unable to obtain money abroad but also their whole foreign commerce will be dislocated through the loss of markets some 0 of the countries have met the emergency by following tho the example ot of the he european nations and decreeing d e c r e e I 1 n g moratoriums harassed south american financial institutions and big commercial firms which were in difficulties may therefore bless the war as avoiding the necessity of 5 forced payments but th they ay gg y will welcome it only as a means of immediate r relief e lief W 1 to debtors who otherwise would be forced into bankruptcy c va brazil has met the situation atlon brought about through the inability to float new loans by provid ing for a new issue of paper currency in addition to the abundant volume which already la is 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 has been on europe europa arid and who understand fully the fiscal status of 0 their respective countries inevitably evit ably 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 ew huu hundred millions capital the answer which may be given to the question will determine whether the united states Is to obtain 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 of 0 financing south america to them the question takes the form of 0 a query whether any of the indebtedness of the south american governments can be shifted to the united states and it if so how soon and under what terms two billion dollars represents in round numbers what the south american countries owe in the form orm of public debts what may be called the national debts do not toot foot up this sum but the municipal and state or provincial debts some of 0 which are not guaranteed by the national govern merit ment bring up the all the south american countries have had the borrowing habit some ot of tile tha weaker and more reckless ones have given the whole continent a bad name yet the truth Is that in view ot of resources and natural wealth and the rapid development that has been going on la Is not an extravagant public debt total it will be found moreover that the very large proportion of 0 the debts has been created by the countries which are solvent and which scrupulously meet their obligations since the international imbro imbroglio glio in which the united states took a hand venezuela has been paying off its debt until now the total amount outstanding Is less than colombia has what la 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 colombia it bondholders bond holders committee the panama gratuity from the gets united states or not wants a general loan ot of something like to build railways and rehabilitate the country generally debt not exceeding 20 ecuador has a public most of 0 which grows out of the bonds issued for the Gu ayaquil and quito railway these are held in england france and the united states state the provision made tor for the sanitation of guaya aguaya quil carried with it a prospective lean ican of A proposition which was brought to new york bankers a year ago was for or a blanket loan of to to take up outstanding obligations provide tor for the sanitation ot of guaya aguaya quill quil and to leave a balance or ir national purposes A new york banking house a few years ago tided ecuador over a stringency by means 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 if the burden had remained the country worked out of 0 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 concessions ces the peruvian corporation and the government have had more inore or lose less friction under the arrangement but bat so tar far as its status as a borrowing nation was concerned peru was able to face the world without a big debt during the last quarter ot a century the total indebtedness incurred has rint been large it now amounts approximately to peru was in the market tor for a loan when the european war broke out bolivia the mid continent country of south america left by the war with chile without a seaport also was wag able to start the peace era without a big national debt tile the amount of the different forms of what may be called the bolivian debt Is now between and paraguay on account of 0 its numerous revolutions and possibly tor for other roa reasons sons never has had much s success in securing money from europe its present public debt Is between and the opening of railway communications with buenos alres aires 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 if paraguay borrows it will have to bo be in new york instead of 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 ai merican american countries are those of the argentine republic brazil chile and uruguay this group of countries owes europe that Is the governments owe europe more than they are able to meet their obligations though somo some of the loans may require refunding on now new basla basis the borrowing n nations are really the A BC B C or mediating south american countries which helped president wilson settle the mexican imbroglio and uruguay the total ot of the argentine obligations Is variable 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 had risen bomin nominally ally to cometh something ing more than 9 a year ago argentina sought to float a new loan in france but the conditions were unfavorable avo rable A new loan on the same basis would doubtless still be desirable but the argentine government would look to new york rather than to paris or london tor for funds brazils various debt issues now approximate there have been loans tor for public improvements prove ments 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 tree free borrower within the last year there them ha have been various propositions tor for new loa loans ns to take up the old ones it I 1 ra A Is not likely that any brazilian loan can now w be floated in europe and none Is therefore likely to be DO 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 of 0 public debts to the amount of 0 OVO the country has borrowed largely on the underlying security of the n nitrate beds beda and the revenue to be obtained from rom them the european war wap interferes with the demand tor for th these aas fertilizers 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 la in the nitrate beds remains uruguay tor for an agricultural country may be assumed to have a pretty large debt since the total now amounts to yet the republic w which aich Is on the gold standard and which has a dollar worth more than the dollar of the U united tilted states holds high rankin european financial circles because of the cert certainty slaty with ith which its financial obligations have been met A few months ago when an emergency loan of 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 far the larger part of the public debts of the south american countries 1 Is held in england while some of 0 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 0 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 0 the probability of american capital at some period in the near future rol relieving leving 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 carl can the united states spare south america during the next five years can it supply during the next 12 months |