Southwest High School - Roundup Yearbook (St Louis, MO)

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SOUTH AMERICAN TRADE By MARY PILANT S THE foreign situation grows steadily more serious, the eyes ' A . Q'-- of all alert Americans turn toward South America. The bulk gi V-a: 'ff' of our country's trade with South' America-is with the so- called 'AA-B-C countries -Argentina, Brazil, Chile. A late record shows that we had a trade of over 8100,- , 000,000 with Argentina, even though Argentina is the one Q South American country which depends chiefly on non- V American trade connections. From Argentina we receive flax- ' I seed, some wine from the vineyards in the western section, tobacco, hemp, bananas and olives. The various minerals we receive from Argentina include oil, copper, and iron. In return we ship to Argentina steel, timber, textiles, and other manufactured articles. Argentina, however, sends most of her meat to England. From Brazil the United States acquires most of her coffee. As a matter of fact we are Brazil's best customer for coffee. Brazil has some rubber, but not as much as the cultivated rubber plantations in the Far East, even though she has the soil and climate most suitable to this product. Although her rubber trade is minor now, it is gradually increasing. Brazil also exports cotton at an average of 268,719 tons annually. In return for her exports, she receives from the United States machinery and autos, and from many countries iron, steel, and manufactured articles. Our trade with Brazil amounts to over S250,000,000 annually. Chile's greatest export is nitrate of soda. This is required by many countries to stimulate better plant growth. It is not, however, the only enriching element countries need. Until just a few years ago, Germany furnished potash: the United States, phosphates: and Chile, the nitrates. Thus one product reveals the close trade connections among South America, the United States, and Germany. Unless the danger of possible European invasion on South American trade is removed to some extent and our Good Neighbor Policy is furthered, our chances of placing the Western Hemisphere on a self-sufficiency basis will be seriously threatened. Chile's nitrates are playing an important part in this struggle. Meanwhile Chile receives in return manufactured goods. Our trade with Chile is a little over SlO0,000,000 a year. In 1931 Mr. Henry Ford stated that he planned to establish a rubber empire of 5,000,000 acres in the Amazon valley. This idea has materialized. There is a possibility that this region might become a world-wide market for rubber. Such enterprises tend to draw Americans to South America. In order to further our friendly relationship with the Latin Americans, these Americans who travel or go to live in South America must treat the Latins with due respect and not give them the impression that we Americans are undesirable friends. Many opportunities are to be found in South America, but Americans who exploit them must adhere strictly to our principles of fair play. Europe receives from South America practically the same variety of mate- rials as does the United States. England has a shipping route leading through the Panama Canal. Germany has an air lane running up the eastern coast to the tip of South America, then traveling across the ocean to Lisbon, to Marseilles, to Frankfort, and finally to Berlin. The United States has both a shipping lane and an air lane. Some of our ships travel up the west coast, through the Panama Canal to New York, while others continue up the western coast to San Francisco. Twenty-five

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In comparing foreign investments in South America, we find that the United States has the largest amounts. In 1936 a graph showed that the United States controlled thirty-five per cent of Latin American imports. The United Kingdom had about ten per cent, while Germany had fifteen per cent. The rest was divided among smaller countries. According to a discussion of the Chicago Round Table, however, the trade between the United States and Latin America is more important to South America than to us because it makes up forty per cent of her trade as compared to only eighteen per cent of ours. It is, however, very important to us. Latin America produces but few outstanding products which are in demand. The fact that each Latin American country produces a small amount of raw materials, changes and regulates its type of trade. Latin Americans are always looking for countries who need raw materials, and this tends to discourage the idea of Pan-American self-sufficiency. It has been said that we can produce a greater supply of manufactured goods than Latin America can pay for by reciprocity, as we do not need raw materials in such quantities. In l937 Latin American trade with European countries amounted to about fourteen per cent of their total trade. Along with this foreign trade have come many evils. Barter agreements are made with foreign countries. A bartering country buys or orders a large amount of materials, and when South American countries try to reciprocate, they either can't get what they want or the price is extremely high. In other words the bartering country is not able to pay for what is ordered. Our country does not make barter agreements. There is little trade with Asia, although it is believed that some day Japan might give the U. S. some competition in textiles because of Japan's cheap labor. It is believed that a Pan-American trading agency will be established to regulate the trade between the Americas. The new Vice-President of the United States, when he was Secretary of Agriculture, stated that as far as Hitler was concerned those countries who supported him would get the business: those who refused probably would find their export markets closed. Thus in this way Hitler might easily dominate both North and South America. ,He also stated, If the Americas, for example, could consolidate their sales of raw materials through one great inter-American corporation and sell for export only through that agency, they would be in as strong a bargaining position as Germany. The U. S. has a trade with South America amounting to a billion dollars annually. As a result of this second World War, South American surpluses are piling up, and there is a possibility of England's losing her trade with South America. Mr. Wallace stated that we must educate our people engaged in Agriculture to the fact that for a time our buying agricultural products from South America will lower their market, but we must establish a firm and constant trade with South America. Our greatest problem in obtaining this trade is to keep Germany out, at least to the extent of political upsets and disorders, by using trade agreement weapons. Mr. Spenser, also a member of the Chicago Round Table, says, Of course if worst comes to worst, and as a way of saving the Americas, it would be cheaper for America to buy the surpluses and dump them in the ocean. This idea may appear rather radical, but it seems advisable that we should make many serious sacrifices to save our democracy from the totalitarian tyrants. Twenty-six