Horacio Bossi Cáceres, Julio Zamora, and José Corbacho, Pan-American Commerce, 1919
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Horacio Bossi Cáceres, Julio Zamora, and José Corbacho, Pan-American Commerce, 1919 At the Second Pan-American Commercial Conference, held in Washington, D.C. in 1919, representatives from throughout the Americas discussed ways to increase hemispheric trade. The First World War had recently ended, and business leaders and diplomats, such as those included in this selection, tried to figure out what global trade patterns might look like in the 1920s. Horacio Bossi Cáceres, Argentine Consul General in San Francisco As a Consular Representative of the Argentine Republic, it gives me great satisfaction to express my opinion and that of my country in regard to those propellant factors which should be put in motion, so that existing commercial intercourse between our respective countries may be consolidated and established upon a solid, permanent basis. It is now evident that owing to the disastrous war which so ruthlessly scourged old Europe and almost destroyed the industries in those countries, the great Northern Republic had the opportunity of being better acquainted with and therefore more able to estimate her Southern sister Republics, then discovering that there are, within their boundaries, immense and accredited markets which will enable her to rapidly increase her wealth and extension. Until five years ago your knowledge of the markets beyond the marvelous Panama Canal were extremely insignificant because your endeavors to enlarge them were insignificant, too, this fact being due perhaps to pressure of your protectionist commercial policies, which traditionally have kept your capitalists in the background of the stage of the commercial life on this Continent, when as a matter of fact your wonderful progress and immeasurable wealth are reasons more than sufficient to entitle your nation to go far ahead of all of the European countries, which, however, having been more foresighted and better connoisseurs of the Southern Republics, poured out their money into them and brought the efforts of their workers’ strong arms to make us and to make themselves rich. This remarkable fact has been synthetized by a notable statesman of my country, when he said: “We owe the wealth and prosperity of the Argentine Republic to the sterling pounds of England and to the strong arm of the Spaniards and Italians.” Yes; that is true. The solid and unshaking foundation of British preponderance and control of South America lies upon the above mentioned fact. And it certainly will be very difficult not to say impossible, to lessen that preponderance, unless weapons and procedures similar to those England has used, should be used, also. Time after time it has been openly advised by your most proficient business men to employ several means not only to prevent actual intercourse between the Argentine and the United States from going down, but instead to surpass the high figures already reached which made a record in the history of our commercial life. Yet, only a few amongst them have demonstrated an exact understanding of Argentina’s commercial history and have pointed out the true items and causes which interfered with the growing up of North America’s interests, the figures of which should be remembered now in order to make a comparative study of the situation. From 1883 till 1913, that is, a period of over 30 years, the bulk of commerce between Argentina and the United States in comparison with the bulk of commerce between Argentina and Germany and England during the same period reached the following figures: 1883. 1913. England $36,652,000 $251,254,000 Germany 11,851,000 129,227,000 United States 8,443,000 84,727,000 Later on these figures changed on account of the European war and at the end of 1917 the United States had risen to the top, according to the following data: United States $299,854,000 England 243,831,000 Germany 294,000 If we were to study the extraordinary triumph won by your country at this exceptional moment in the world’s commercial life we certainly should find out two most transcendental facts which cannot escape the judgment of a studious and calm observer, to wit: the complete elimination of Germany from the markets of this Continent and the ever growing strength of the commercial links which bind England and the Argentine, allowing the former to retain unshaken the high place in the financial and business world of my country in spite of her enormous losses on the sea and her most critical economical political situation. Yet, the explanation of the British preponderance in Argentina’s market could be easily found if only bearing in mind that she made such great investments in behalf of the economical and industrial development of Argentina, investments which are represented by the enormous sum of two billions of dollars, with which we have been able to move our locomotives and street cars, feed our ports, exploit our forests, cattle and agriculturing enterprises and inject vigorous life, activity and progress into all our industries, maintaining at the same time the credit of our Public Treasury with the almost whole British subscription of our foreign public debt. A statement formulated the 31st of December, 1908, shows the British capital in Argentina, as represented by the following figures: Capital. Interest. Loans, Government, Provincial, Municipal $319,273,215 $15,232,990 Railways 831,803,415 40,247,155 Banks 39,312,000 3,525,480 Agricultural loans and mortgages 34,236,080 1,298,660 Tramways 101,423,525 4,378,115 Electricity 25,762,950 1,438,425 Agriculture 20,094,985 1,241,020 Various 73,648,540 3,929,930 Total $1,445,554,710 $71,291,675 The value of maritime interests represented by quite a large number of ships, as well as the capital invested in other numerous transactions, totals more than $100,000,000, which should be added. Second to England, France is the nation among the European powers which had faith in the credit and capacity of Argentina and has made investments of nearly $400,000,000, distributed as follows: States funds $261,661,530 Banks 51,678,400 Transports 64,011,450 Mines 2,744,890 Various 14,900,000 Total $394,966,270 Germany was the third till the beginning of the war, her investments being estimated at nearly $300,000,000, distributed in banks, industrial concerns, electric companies, electric railways, etc. The above figures correspond to the same date, December 31, 1908. Summarizing, the foreign capital which met a most profitable and safe investment in the Argentine Republic is far above the amount of three billions of dollars, of which two-thirds are owned by England, while such a small percentage corresponds to the United States that it has to be considered under the column of “others.” Having in view the practical application which characterizes the American spirit in all orders of human activity, and, according to the facts just set forth above, I have no doubt that it should be very easy for you to foresee the measures of a defensive nature that England, France, Italy, etc., shall present in opposition to you in order to keep for their own benefit the position they had reached after long years of fruitful perseverance and uninterrupted accumulation of new and valuable investments and the fruits of their energies. Nevertheless, that does not mean that your cooperation in the business life of Argentina should have to face obstruction. On the contrary, the forceful exclusion of Germany which necessarily has been disastrous to that country and the weakening of France and Belgium which will bring their sources of production to a very low level for years to come, will leave open and free the door of an immense field for your industries, if you only know how to appreciate the opportunity and meet the demand of Argentina, affording the same kind consideration, credit, loyalty and benevolence that the industrial people of Europe have always granted to her. So it is my opinion that you should not hesitate in pouring out your capital and labor into the young, flourishing land of Argentina, where institutions, codes and laws are so very similar to yours; try to help her by laboring her soil, cooperating in the development of railroads, the irrigation of lands, the building up of roads, harbors, etc., thereby securing the sale of your merchandise which are to be transported on your new efficient merchant fleet and the return freight to make the traffic profitable. One of your most conspicuous business men, Mr. John C. Claussen, the Vice President of the Crocker National Bank of San Francisco, when addressing the Ninth Convention of the Southern Commercial Congress held at New York City, pointed out that American business men, who have hitherto been reluctant to make outside investments, probably due to the fact that with the swift and extensive development of his country the natural tendency has been to invest his money in local enterprises and lands. But while it is true that such investments have largely contributed to the aggrandizement of his country, it is also true that in proportion of the growing of its resources there exists the danger that this preference to make investments on lands may some day cause the prices of these lands to go to the highest point, and therefore, it is advisable and desirable, Mr. Claussen says, that the accumulated capital at home should find new open channels for best benefit and advantage of Americans. Now then, those channels are open to North American labor and capital in the beautiful land of Argentina. Its exceptional geographical situation, its vast and undeveloped meadows and luxuriant woods, healthy climate, wise legislation and social, commercial and political culture at the same level with the most prosperous nations in the world cordially invite your labor and capital to undertake all kind of activities.