I

N order to consider the consequences which the rupture of the countries of Latin Amer

ica with the Empire of Germany will present, eventually, it is suitable to point out what German commerce in these countries was and is to-day.

I.

THE GENERAL CHARACTER OF GERMAN COM

MERCE IN LATIN AMERICA

Although supplying scarcely 18% of Latin American consumption, and taking but 13.43% of South American exportations, Germany was and is enjoying over there an increasing commercial prestige which is at times equalled by that of England only. This prestige comes from the fact that German commerce has constituted itself the international agent or broker and the principal intermediary for the sales and purchases by the wholesale, the banking commercial operations and the transportation, and in this manner it appears as the most active of all. This character of German commerce explains why three years of war and of blockade, while stopping German exportations, nevertheless have not broken the commercial organization of Germany in South America.

The first German employees and traders succeeded particularly in the beginning in jobbing and wholesale commerce (drugs, textures, merceries, etc.).

They approached the higher commerce while introducing machinery and chemical products. As soon as they were supported by the banks, they were seen to become more and more interested in buying and exportation, and finally creating manufactures and exploiting the local wealth, mineral and agricultural.

The cycle of German commerce in Latin America is in this manner complete, but-we cannot insist on it too much-to this advantage the Germans added that of having substituted themselves to the other peoples in the administration of a part of their commerce. That is so true that the English have not yet been able

everywhere to apply the "black lists" with absolute rigor; by suppressing the medium of the German distributor they would have exhausted the very demand for their products, the greater part of the cotton cloths of Manchester and of the woolen goods of Yorkshire were distributed in Latin America by German wholesale houses, to native houses, Spanish or Italian.

II.

THE GERMAN HOUSES IN THE DIFFERENT COUNTRIES OF LATIN AMERICA

In order to get a just idea of German commerce in Latin America, it is necessary not to be satisfied with customs statistics, but also to study, in each country, the relative importance, in relation to the others, of the German houses which are there established. We can sum up the conclusions of this study by saying:

1st. That there is no South American country where the Germans do not dominate in the commerce called wholesale or importation, and have not assumed in the period which preceded the war a greater and greater part in the commerce of exportation.

2nd. That there exist German houses for the most part branches in the most remote cities.

3rd. That, everywhere, there are establishments of commerce which, centralizing the most flourishing German business, are truly representatives of the national effort.

In Brazil, no European house can compare with Theodore Wille & Co., Hermann Stoltz & Co., Hasencleber, etc. The first were the strongest exporters of coffee, the agents of Krupp, Borsig, Alsen, and the principal purveyors of the Government. Stoltz & Co. have the monopoly of sugar and of tobacco. Hasencleber carries on a considerable import business, as manufacturer's agent and on his own account, and has set up several industrial establishments.

Bahia and Pernambuco are in the hands of the Germans, from the commercial point of

view. Likewise, in Para they are gaining every year. And we know how prosperous their industry and their commerce are in Santa Catharina, in Parana and in Rio Grande do Sul.

In Paraguay, the situation of the Germans is preponderating.

In Argentina, the greatest wholesale texture houses (Staudt Hirschberg, Hardt) are German; they do an important business in manufacturing and vine-growing machinery; their wholesale commerce in wheat and in corn was increasing (although as for wools they were not as well placed, in comparison with France, at least before the war).

In Chile, the same remarks apply for wholesale commerce and machinery. They had commenced the exploitation and the exportation of saltpetre. Firms like Vorwerck, Hardt, Saavedra Benard, imposed themselves, without, however, reaching the great reputation of certain English houses.

In Bolivia, they were the first in wholesale commerce, retail and exportation of metals and leather.

In Peru, in Lima, at least, they were gaining from year to year, and were disputing with the English the exportations of cotton, rice, wool and copper.

In Ecuador, in Guayaquil, high commerce was German or Germanized in great part. The Germans controlled corozo, and were always taking a more conspicuous part in the purchases of cocoanut, coffee and tobacco.

In Colombia, the same progress is to be noted, with dominating firms.

In Venezuela, the firm Blohm & Co. was all-powerful, etc., etc.

III.

THE CAPITAL, THE BANKS AND THE NAVIGATION COMPANIES

If we totalized the German capital brought to Latin America, we would not reach perhaps one-tenth of what has been there invested by France. What it gains is, nevertheless, without proportion with what ours brings us. The Germans have contributed little to the public works, and have lent nothing to the States or the provinces. The credit which they extend is a credit essentially commercial, as much in

the delivery of merchandise as in the banking operations.

It would not be necessary to believe, moreover, that the German banks have a very important capital; these banks, affiliated with those of Berlin, take their strength from the credit accorded them in Europe (in Germany and in France), from the deposits which they received on the spot and from the mass of payments which they had charge of. An essential factor of their success is the quality of the personnel.

Amongst them, the following are the principal:

Banco Aleman Transatlantico (affiliated with the Deutsche Bank, of Berlin).—Capital, 30,000,000 Mk., with branches in Peru, Bolivia, Uruguay, Argentina, Paraguay, and Brazil.

Banco de Chile y Alemania (affiliated with the Disconto of Berlin, and recently with the Creditbank of Budapest; that is to say, with the house Rothschild of Vienna).—Capital, 5,000,000 Mk. (for Chile).

Deutsche Sudamerikanische Bank (affiliated with the Dresdner Bank).-Capital, 20,000,000 Mk. (for Argentina and Brazil).

Brazilianische Bank fur Deutschland (affiliated with the Disconto of Berlin, and recently with the Creditanstalt of Vienna; that is to say, with the Rothschild house of Vienna). -Capital, 15,000,000 Mk. (Brazil).

Mexikanische Bank fur Handel & Industrie.

It is equally suitable to cite the names of the German Navigation Companies which at the same time that they were serving Germany, served Holland, Belgium, France, Portugal, Spain and Italy:

1. Hamburg, Sudamerikanische Dampfschiffahrts-gesellschaft: Brazil, Uruguay and Argentina.

2. Norddeutscher Lloyd: Brazil, Uruguay, Argentina and Antilles.

3. Company Kosmos: Uruguay, South Argentina, Pacific Coast.

4. Company Roland: Uruguay, South Argentina, Pacific Coast.

5. Hamburg-Amerika: Panama, Mexico, Caribbee.

6. Several companies of sailing vessels. (Continued on page XI)

Results Versus Criticism

Those who follow the description of the remarkable Hog Island Shipping Enterprise, published in this Magazine in February, as well as all those persons who desire truly to assist the government at this time of actual need will be inclined to praise rather than to criticise the men in charge of our new shipping construction. In the words of Mr. Hurley in a recent statement, "We have 130 yards, 700 ways and 500,000 men." In this statement he did not include evidently the 250,000 shipyard volunteers. The month of March will see 26 vessels placed in commission, the major part of them being ships reconstructed and repaired: 34 vessels were launched.

It is estimated upon good authority that with the loyal cooperation of the workmen there will be 1,600 ships turned out the present year, having a total tonnage of four millions.

Despite failures and mistakes which are bound to happen in the development of new, untried and enormous tasks, the work now being accomplished and the promise for the future are far too great for captious critics.

The Western workers furthermore are showing the East an example both of patriotism and efficiency. In one of our Western States an 8,800 ton ship was finished recently in 64 days. Here, as in the East, the influence of leaders like Samuel Gompers and his kind is being felt deeply. The United States Board is getting under way with splendid resourcefulness. Those who have gone to criticise the work of this Board have usually returned to praise it. This is a period when every man should watch carefully his own spirit and words, making sure that what he says and does will contribute to the constructive building of our ships and the upbuilding of our National patriotic spirit, banishing trivial criticisms. As Carlyle once said, "What I do is my kingdom." Our Government is really doing things. It has a right to call upon every true American citizen to help constructively and not to hinder the great work by undue fault finding and negative suggestions.