'A How We Affect Latin America's Daily Life LATIN AMERICA, No. 2 William J. Dangaix Formerly Foreign Agent of the War Trade Board at Berne and Paris Author of How Latin America Affects Our Daily Life INSTITUTE FOR PUBLIC SERVICE 51 CHAMBERS STREET NEW YORK CITY r f t I V c+ ^ C^ O 1 8-0 S> rt- 2T M 5 3^8 3 The organization is so complete, under the supervision of our men, as to seek the sale of sewing machines on small weekly or monthly payments, within the ability of the poorest woman to meet. These liberal terms are not at prices too often met with at home, among installment furniture and other dealers, which entitle the method to be dubbed the "extortion plan," but at figures above the cash price barely sufficient to cover a small interest on the unpaid balances and the reasonable expense of collecting them. I was rather surprised to learn from American district agents and supervisors whom I met that their losses through sales and absconding collectors were infinitesimal. Although the sale of sewing machines represents a relatively small part of our commerce with Latin America, it is not difficult to foresee . the wide influence of these machines on our growing commerce, better . "*"* understanding and closer relations with her. It frequently happens P|CI that the sewing machine conveys to the native his first knowledge of the value of our manufactures, and is the real pioneer in the develop- ment of a large trade. Its satisfying service in the family, and the joy it brings to wife and daughters, naturally leads to anxious demands for a great variety of our products and a better appreciation of our manifold services. 19 It seems clear to me that if our manufacturers and mer- Leaders in chants in general were to apply the same enterprise, energy enterprise an d organization in promoting and extending their sales and business in Latin America, as we find displayed by our sewing machine companies, there would be little occasion to give much thought to the commercial rivalry of Europe in those markets. Although our sewing machine companies enjoy a virtual monopoly in their line, they are not sitting down idly at home waiting on some happy chance to reveal the value of the ma- chine in the Latin American home, or on the mails to bring in a cash order, but through wonderfully organized methods they are looking up customers in the remotest corners of the world, and making it inviting for them to buy sewing machines. Stores Scales Safes Metal furniture Cutlery and band tools Printing presses Mosquito* and flies This is an excellent topic for school assembly or for Cham- ber of Commerce meeting. The fact that Latin America bought of us during the fiscal year of 1918, stoves and ranges worth $790,000 (about 30,000 customers) indicates their growing appreciation of our better means of cooking and heating than by the old-style brick and tile stoves of Spain and Portugal and the open charcoal braz- iers over which I have often shivered in high altitudes and cold climates. They are also coming to know more of the value of our modern scales and balances, (sales $729,000) over old European models which the merchant holds suspended by one hand while he goes through many gymnastics with the other. We are safeguarding Latin American books, money and other valuables against destruction by fire and loss by rob- bery, as indicated by our sales to them in one year of 4,430 iron safes valued at $283,000. They are also coming to be better acquainted with the merits of our metal furniture, (sales $1,200,000) which articles aie of special value in the tropics where insects are very de- structive of wood. They appreciate the value of our razors and cutlery, (sales $2,000,000) and have long appreciated the superiority of our axes, hatchets, hammers, saws, shovels, spades and other hand tools. One year's sales were $4,700,000. Nor have they overlooked our printing presses of which they bought to the value of $475,000, and typesetting ma- chines, valued at $414,000. So far as Latin Americans have learned that the pestilen- tial fly and deadly mosquito are neither blessings in disguise nor necessary evils they look to us for the screens on verandas, doors and windows which will keep out the female stegomyia mosquito, who serves as the most active agency in the trans- mission of yellow fever, while her consort chants the funeral 20 dirge or sings some discordant ditty so little appreciated by a foreign traveler during a sleepless night. Our "kill the fly" devices, such as fly paper and fly traps, were bought to the value of $47,400. Fancy the tons of flies destroyed and the many cases of serious illness prevented by this large quantity of fly-killing devices. The Irreconcilable Conflict of Screens and Mosquitoes would test the class's knowledge of modern sanitary ad- vances. In 1918, Latin America spent over $6,000,000 for our wire, which is significant of its extensive use in her telephone Wire and telegraph systems. She also spent $3,700,000 for our barbed wire and $330,000 for our woven-wire fencing which is in popular use to enclose farms, ranches and great pas- tures. Besides, she bought wire rope and cables, valued at over $1,100,000, and our other wire manufactures, valued at $1,435,000. These large totals are but beginnings which prom- ise prodigious development as Latin America learns their value. I found none but American automobiles along the govern- ment-built macadamized road of 82 miles, from San Lorenzo Auto to Tegucigalpa, the capital of Honduras, the only good road- way in that country. There are many more American automobiles in the West Indies, Mexico and the countries of Central America than all others combined; but we have allowed European makes to outsell us in South America, a large field in which we shall soon overcome our neglected opportunities, for we have made notable progress in recent years in our sales of automobiles to Latin America. During 1918 we sold her 19,560 passenger and 1,528 commercial cars, which with automobile parts, not in- cluding engines and tires, were valued at $24,600,000, besides 990 motor-cycles valued at $213,000, and bicycles to the value of over $440,000. Have classes ride on bicycles and in automobiles through parts of Latin America. Manufacturers will gladly furnish descriptive material. American automobiles are in general use not only in cities and towns, but are found in remote sections of Latin America, A p ,_ often to the exclusion of other cars. They even precede road- building, as I discovered when in Southern Patagonia. ranch In my dilemma at Gallegos, a bleak and dreary town of 2,000 inhabitants, near the Straits of Magellan, to find means of visiting a sheep ranch of 62,000 acres on which 15,000 head of sheep produced 125,000 pounds of wool the previous year, I discovered a Frenchman, the proud possessor of a "Ford," 21 whom I engaged, at a fancy price, to bump me over 24 miles of wild pampas, almost unmarked with any semblance of a Great tidal range The Atacama Desert Where rain i* a curiouty I had heard of the ability of a "Ford" to climb a tree and swim a river, but I was wholly unprepared for such feats as it accomplished on this memorable ride. We drove to the ranch in the face of the fiercest and cold- est wind I have ever felt blow out of a perfectly clear sky, a not uncommon occurrence in Southern Patagonia, and which seemed to be the only hindrance to our progress. But I was too cold to care much what happened. It was September 3rd, at the end of the bleak and severe winter season in that remote and desolate part of the world, and I shall always remember that ride as the roughest and coldest I have ever taken. One of the interesting discoveries I made at Gallegos, located on the right bank of the Rio Gallegos, ten miles from its mouth, is that the extreme range of the tide there is about 50 feet, which is only ex- ceeded, to my knowledge, by that of the Bay of Fundy; yet at Punta Arenas, in the Straits of Magellan, within 150 miles from Gallegos, the mean tidal range is less than 4 feet. The mean range of tide at Montevideo, where the River Plate is nearly 100 miles wide, is only 1.4 feet. Our pipes and fittings, to the value of $11,400,000 were taken chiefly for the construction of water, sewerage and drain- age systems, and in the plumbing of buildings, so necessary to many industries, to health and often to life itself. Not only many cities are wholly dependent upon their water supply from distant sources, piped through iron water mains; but sometimes large regions of country as, for instance, the great Atacama Desert, stretching along 500 miles, in Chile, can only be sustained with sufficient water piped from long distances. Rain does not fall anywhere in this region more frequently than once a year, and then only a light sprinkle. No region on earth is more waterless and parched. Practically every drop of water con- sumed in the section traversed by the railroad from Antofagasta to San Pedro, Chile, a distance of 193 miles, and including the city of Antofagasta, with 60,000 people, is piped from reservoirs at San Pedro, at an altitude of 10,700 feet. The railroad constructed these water-works at a cost of about $5,000,000 as efficient means of developing that section, which in- cludes some of the richest parts of the nitrate fields. Previously water had to be hauled there from long distances, in tanks and barrels. The water mains, which follow the line of the railroad, make life and industry possible, and enable Chile to mine and produce nitrates in sufficient quantity to supply the demands of the world for this curious substance, the formation of which has given rise to many theories and speculations by learned geologists and meteorologists. 22 No animal or plant life is possible in the nitrate fields with- out water brought there from without ; also the necessary soil for plants, as these fields are as barren of earth as of water. As absolutely nothing grows there indigenously, every article of food for man and beast must also be imported from without. The occasional potted plant grows in imported soil. Yet from all this parched desolation comes abundant nourishment to impoverished soils all over the world, and through the enriched soils increases the world's supply of food for man and beast. Imagine what would happen to the life of Buenos Ay res, Rio de Janeiro, Montevideo, Santiago, Lima, Mexico City, Havana or any other important city of Latin America, if its water supply, made possible by iron water mains, were sud- denly cut off ! The same disastrous consequences would come to us if the same thing happened to one of our cities. There would be great distress and suffering, even within the first few hours. No one is so well equipped as we are to furnish the means for future water departments. Chilian nitrate fields Dependence upon water mains Develop illustrations from local experience, including won- derful changes in our deserts thanks to iron or tile piping. houses Tin tinware Practically all the houses in Southern Patagonia are small iron-clad buildings made from galvanized sheet iron fur- ?t*ioi nished largely by us, (one year $5,000,000). I had often thought from outward appearances that these little iron build- ings were probably occupied by laborers with small incomes, only to find later that many of them were the homes of ranch- men enjoying annual incomes of from $10,000 to $50,000 a year from their large herds of sheep. Even where the houses are made of wood, as in some parts of Latin America, tin roofing is extensively employed. Sales of sheet tin which is iron coated with tin totalled $16,- 250,000 while sales of tinware and other tin manufactures ran to over $1,136,000 and will, of course, grow by leaps and bounds. It will be an interesting exercise for classes to list the human activities and benefits involved in the following sales by us to Latin America in 1918 of other metal commodities: Bar iron, wire and other steel rods $6,247,000 Iron and steel plates and sheets (not galvanized) . . 5,970,000 Structural iron and steel 4,706,000 Copper and copper manufactures 3,874,000 Nails, tacks and wood screws 3,322,000 Brass and brass manufactures 2,908,000 Pumps and pumping machinery 2,884,000 Builders' and other hardware 2,839,000 Enamel ware (including 7,020 bathtubs) 2,656,000 23 Lead and lead manufactures 2,083,000 Bolts, nuts, rivets and washers 1,968,000 Plated ware (except cutlery and jewelry) 1,691,000 Hoops, bands and scroll 1,545,000 Zinc and zinc manufactures 1,371,000 Lamps and other illuminating devices (not electric) 1,117,000 Metal compositions and their manufactures 948,000 Pig and scrap iron 917,000 Castings and f orgings 822,000 Clocks and watches 738,000 Firearms (even to Mexico) 737,000 Elevators and elevator machinery 679,000 Car wheels and axles 662,000 Chains 535,000 Gold and silver manufactures (including jewelry) . 477,000 Steel ingots, billets and blooms 328,000 Aluminum and aluminum manufactures 272,000 Gas and water meters 192,000 Needles 157,000 Cotton gins (624) 127,000 Nickel and nickel manufactures 111,000 Sharpening and grinding machines 109,000 Type, plates, cuts and electrotypes 106,000 Metallic pens (135,029 gross) 71,000 Horseshoes 61,000 In the light of this survey of our sales to Latin America , , in metals and metal manufactures, can there be any question iafsales " ^ our tremendous importance to her in supplying these essen- tial needs which we produce in such abundance, and are better qualified to furnish than all Europe combined? This service is made more impressive when it is recalled that it was ren- dered during a year when our national energies were centered in the participation of the greatest war in the annals of his- tory, when our large army in Europe and our associates there in the war had the first call on our surplus products; and in the midst of great financial difficulties, disrupted exchanges, interrupted business, abnormal labor conditions and wide- spread unrest. Important as this is, it is only one of many ways in which we are and can be of far greater service to Latin America, and upon terms more advantageous to her than any other coun- try can offer. For the indispensable foodstuffs which Europe cannot spare, and which Argentina, Brazil, Paraguay, Uruguay and Foodstuff* other countries to the south have not yet sought to produce in sufficient quantities, Latin America naturally looks to the United States as the only country in the world which pro- duces a large surplus of breadstuffs, corn, oats, hog and other meat products, fats, edible oils, canned fruits and vegetables and many other necessary foodstuffs. 24 In spite of her vast uncountable herds of sheep and cattle and the uncountable acres of land under cultivation and mil- lions upon millions of still untilled lands that rival the world's best in richness, Latin America already buys over one hundred and thirty-five million dollars worth of foodstuffs from us annually. No fewer than 1,300,000,000 loaves of bread, or rather the flour for this many loaves of bread, (5,000,000 bbls.) was pur- Flour chased in 1916, which total shrank in 1918, nearly two-thirds, Wh*i because of the Government requisitions for our large army, our associates in the war, and needy neutrals. Similarly, shipments of wheat fell off from 4,224,345 bushels in 1916 to only 129,745 bushels in 1918. But our shipments of other foodstuffs show large gains over 1916. In 1918, the five largest Latin American customers for our flour were, in the order named: Cuba, Mexico, Gaute- mala, Brazil and Jamaica; while our smallest customers were naturally Argentina and Uruguay, the only countries of Latin America which produce a surplus of wheat. Develop reciprocal service of Chile in furnishing nitrates and our country in returning foodstuffs to all of Latin America. In 1918, our principal sales of foodstuffs and feedstuffs to Latin America and the approximate value of each were: Hams, bacon, lard and other hog products $34,000,000 Wheat flour (1,886,593 bbls.) 21,000,000 Refined sugar (137,846,213 Ibs.) 10,000,000 Corn (4,476,364 bushels) 9,100,000 Condensed and evaporated milk (54,251,283 Ibs.) . . 7,800,000 Meats and meat products (except hog products) . . . 6,000,000 Dried, cured and canned fish 5,800,000 Beans and peas (807,935 bushels) 4,700,000 Green, dried and canned fruits and nuts 4,300,000 Irish potatoes (2,568,960 bushels) 4,000,000 Cottonseed oil (20,590,579 Ibs.) 4,000,000 Green and roasted coffee (27,203,705 Ibs.) 3,800,000 Oats, hay, bran, mill feed and oil cake 3,700,000 Eggs and egg yolks (10,009,301 dozen) 3,600,000 Rice (47,621,265 Ibs.) 3,300,000 Other vegetables (including canned) 2,000,000 Cheese (4,795,013 Ibs.) 1,500,000 Butter (2,873,017 Ibs.) 1,200,000 Chocolate and confectionery 1,200,000 Cornmeal (117,817 bbls.) 1,200,000 Oatmeal and other cereal preparations 1,000,000 Bread and biscuits (7,606,233 Ibs.) 1,000,000 Emphasize the fact that this enormous trade is only in its infancy. Try to forecast total amounts that will be needed by Latin America in 1930, 1950, etc. Altogether, we sold foodstuffs and feedstuffs to Latin America, including rye flour, wheat, barley, malt, cornstarch, glucose, sirups, baking powders and yeast, pickles and sauces, spices and vinegar, flavoring extracts and fruit juices, to the value of $135,440,000! This large sum represents over 18% of the total value of our exports of domestic merchandise to Latin America in 1918. It is estimated that fully 95% of these food products originated Origin with us, the remaining 5% being represented in the imported value * OU * tf * the Latin American raw products which entered into their manu- foodstuffs facture or preparation, such as raw sugar, cocoa, green coffee, and tin used in the manufacture of containers. The coffee, however, the bulk of which went to the West Indies, was probably the product of Porto Rico which is, of course, domestic territory. It will be seen that the United States contributes, very largely, to the Latin American table: in the bread, cake and biscuits they eat, and the baking powder, yeast, lard, butter and manufactured sugar which enters into it; in cottonseed oil, used largely in cooking and in salads ; to their extensive use of condensed milk, frequently found even on cattle ranches. I have found cattle ranches in Latin American countries JesT^atSe 7 wnere a glass of fresh milk could not be had and where fresh ranches butter was unknown. If any butter was used at all it was apt to be the product of the United States or possibly imported in tins from Denmark. They look to us, almost exclusively for their hams, bacon, lard and other hog products, although most of those countries could raise hogs as successfully as we do; and some of them even better, where climatic conditions favor larger and more frequent litters. Most of these countries also look to us for other meat products. They are largely dependent upon us for their canned fruits and vegetables; even in Argentina, Uruguay and Chile, countries which with proper enterprise and industry could eas- ily produce a large surplus of such products. I saw more than enough wild blackberries going to waste U* ia irbe * n Southern Chile to supply the needs of all Latin America for 1 blackberry jam and pies. It was explained to me that the high cost of sugar, tins and jars in conserving this delicious wild fruit did not yet warrant gathering it; that it was more eco- nomical to import such preserves from the United States or even from Europe ! As the bulk of the inhabitants of Latin America are of the Catholic faith, they consume quantities of fish on Fridays and other days of abstinence, and they look to us principally for their supply of dried, cured and canned fish. We are shipping them large quantities of corn, oats and hay with which to help feed the stock in some of these coun- tries. 26 In 1918 we sold them chocolate and confectionery to the value of $1,235,000, the raw materials in the manufacture of which originated principally in those countries. Some of these countries already look to us chiefly for but- ter and cheese, peas and beans, Irish potatoes, onions, corn- meal, oatmeal, peanuts, pecans, pickles, sauces, biscuits, crack- ers, condensed milk and other important foods. Most of these products can and will in time doubtless be produced in most of the countries of Latin America, in suffi- cient quantities to at least meet domestic requirements; but until this time arrives, possibly in the distant future, they will look principally to us to supply their needs in these lines. What applications can you make of thrift lessons learned during the World War, to this opportunity to increase our trade? The combined forests of Latin America are four times larger than our own wooded lands, and would more than Latin Amer- cover the entire area of continental United States. Despite ica ' s their enormous extent, they contain but small stands of soft- woods, (except in southern Brazil and Chile), and even these are of inferior quality, widely scattered and generally inacces- sible, owing to the lack of transportation facilities. Therefore, Latin America is largely dependent upon other countries, principally the United States, to supply her need for softwoods which are best adapted to the building trades, to many lines of manufacture, for boxes, crates and slack barrels in marketing her products. We even sell Latin America large quantities of hardwoods, such as ash, gum, hickory, oak and walnut, in which her own forests are deficient and do not yield a suitable substitute. Our lumber not only dominates the building trades on both the Atlantic and Pacific coasts of Latin America, but our box and crate shocks, staves and heading, cooperage, doors, sash, blinds, mouldings and other house trim, house- hold and other furniture, refrigerators, woodenware, wagons, trucks, wheelbarrows, tool handles, boat oars and other wood manufactures are widely used throughout Latin America. Moreover, the by-products of our forests, such as rosin, tur- pentine, pitch, wood alcohol and wood pulp are of large im- portance to her. Our southern yellow pine is in special favor because of s oul j, ern its combination of qualities that make it more suitable for a ye ii ow p ; Be greater variety of uses, ranging from rough construction to in great the highest class of furniture and fixtures. Besides, it enjoys demand the reputation of resisting more successfully than other woods the destructive attacks by termites or white ants, so common in the tropics. The Latin American usually feels as great 27 Wood manufac- tures Oil* and greases pride in possessing furniture and fixtures made of pitch pine, especially curly pine, as we do when made of the finest grade of mahogany. One of the novel and interesting sights to me at Buenos Ayres, Montevideo, Rio de Janeiro, Valparaiso, Callao and some of the less important ports of South America, was numerous American sailing vessels, including small schooners, ordinarily engaged in our coastwise trade, discharging cargoes of lumber from our Pacific, Gulf and South Atlantic ports; attracted to such long sailing distances by the abnormally high ocean freights, owing to the dearth of steamers in the carrying trade. Wood and wood manufactures represent our eighth larg- est item of export to Latin America, as shown by our sales, in 1918, of over $28,200,000. These sales include logs, sawed timber and lumber, including railroad ties and shingles, to the value of $17,000,000; empty hogsheads and barrels, staves, heading, cooperage, box and other shooks valued at $5,000,- 000; and the balance being represented in various manufac- tures. These manufactures, however, do not include agri- cultural machinery and implements; cars, wagons and other vehicles; or any wood by-products, such as naval stores and wood alcohol. It will be seen that in the different character of forests and other natural products of Latin America and the United States, nature itself provided the need of interchange and mutual helpfulness between the peoples of the New World. Learn from the Forest Service of the Department of Agriculture, National Conservation Association and the American Forestry Association, all in Washington, D. C., what is being done, and what else needs be done to best conserve our forests. For mineral oils and their distillations ($34,500,000) and for lubricating and other greases ($2,500,000), Latin America looks to us almost exclusively. Even Mexico which is now producing petroleum in large quantities, and the other coun- tries, notably Peru and Argentina, whose production is con- siderable, look to us principally to supply their needs for refined oils, since they have no adequate means of refining their local raw product. Our illuminating oils light the way along streets and in buildings everywhere in Latin America, where gas or elec- tricity has not yet been installed, or where these more modern lights are still exorbitantly high. Our lubricating oils keep Latin America's machinery run- ning smoothly and our greases help her trains and vehicles to maintain their service. I took one long trip on a train in South America which it was necessary to stop every few miles to subdue the blazing fire and allow the axles on almost every 28 car to cool, because the supply of grease had become ex- hausted. Our gasoline makes possible the service of automobiles, and the power furnished by many stationary, traction and marine engines in Latin America. It also answers many other requirements there as in dry cleaning establishments and scientific works. Less imposing than our sales of mineral oils, but no less significant of the importance of our services to Latin America, Candles is the item of over $5,000,000 spent by her, in 1918, for our Acetylene paraffin, wax, and 4,168,198 Ibs. of candles; $1,133,000 for ** calcium carbide; and $2,035,000 for 9,906,000 incandescent lamps. This last item helps us appreciate the point often made in this book, that we must judge our gains with new custom- Electric ers by the number of purchases they make, that is the number lam P of objects they purchase, rather than by dollar and cent totals. Do not you see that 9,906,000 incandescent lamps mean 9,906,- 000 radiating centers and advertisers of co-operation between Latin America and the United States? Wherever artificial light is employed in Latin America, whether it be the flame of the resinous pine, a match, candle, We light the miner's torch, oil lantern or lamp, coal or acetylene gas, thc the beacon in the lighthouse, incandescent or arc lamp or the blinding glare of the searchlight, it is usually from products of the United States. In 1918, we sold Latin America $231,000 worth of matches If every match had been marked "Made in U. S. A.", how many mediums of advertising would they create? Coal is the only fuel used for generating steam, not only in locomotives but practically everywhere in Latin America where steam is required, despite the fact that Chile is the only country where coal is commercially mined. Chilian coal mines are principally on the coast, in the neighborhood of Concepcion, where they even extend out c oa j mine! under the Pacific. But Chilian coal is of inferior quality, not under the suitable for coking, and the output does not supply more than Pacific half of the total consumption of coal in Chile alone. It is generally mixed with American, Australian or English coal of better grade, and is principally used by the Government- owned railroads. Other large coal deposits are known to exist in several countries of Latin America, but until these are made acces- sible, she must continue to depend upon the outside world, especially the United States, for her coal supply. 29 Omnipo- tence of coal Fuel-les* forests Yareta Taquia Sales of rubber good* Rubber import* Wild rubber Being far in the lead of any other nation in the produc- tion of coal, we wield a mighty power in its discriminating s^le to nations whose industrial life almost depends upon our willingness to sell them. We have had recent examples in Europe of how embargoes and other war necessities have driven nations to accept harsh terms in obtaining even a meagre supply of coal. Without the 4,011,260 tons of coal and the 378,196 tons of coke, valued at $24,335,000, which we furnished to Latin America, in 1918, many of her cities would have been without gas or electric lights and power; her trains and electric cars would have ceased to run, and many of her important indus- tries would have been brought to a standstill. Wood fuel for steaming purposes in Latin America cannot be considered, as practically all of her extensive forests are composed of hardwoods, too expensive to cut, too heavy to handle or to float, extremely inaccessible and otherwise disqualified as fuel. On the treeless Andean plateau, and at mines in the higher reaches of the Andes, where fuel is one of the greatest local problems, yareta moss and taquia are commonly used for steaming and cooking purposes. Yareta moss is a tough fibrous plant that grows in a hard com- pact mass of mushroom shape, usually about two feet in diameter. It burns as fiercely as the peat of Ireland and is more quickly con- sumed, and is about the only vegetation found in those high altitudes. Taquia, the droppings of the alpaca and llama, has an important local value as fuel, like the droppings of the yak in the highlands of Tibet. Gathering yareta moss and taquia, and transporting this material on the backs of llamas and burros, often for long distances, is an important industry among the Indians of the Andean plateau. It is a common sight in such cities as La Paz and Oruro, Bolivia; and Cuzco, Peru, to see Indians peddling taquia for cooking purposes from baskets or sacks carried by llamas and burros from door to door. Show how and why Latin America is dependent prin- cipally upon us for industrial power and lights. In 1918, we exported to Latin America $10,428,000 worth of rubber manufactures of which 63% was in automobile and other tires; 19% in belting, hose and packing; 3% in drug- gists' sundries; 2% in 227,456 pairs of boots and shoes; and the remaining 13% in miscellaneous articles. In the same year, the United States imported from Latin America, crude rubber to the value of $20,588,486 of which Brazil alone furnished 70%. This large quantity, however, was less than 10% of our total imports of crude and scrap rubber, amounting to 428,963,913 Ibs. and valued at $207,562,458. Wild rubber which is gathered in practically every coun- try in Latin America, formerly constituted the world's chief source of supply, but rapidly growing needs for rubber out- 30 grew the natural supply of accessible forests. Unfortunately, Latin America failed to keep pace with these demands through more extensive cultivation of the rubber tree, and leadership in the production of one of her great natural products was transferred from the New World to a distant part of the Old World. The bulk of the world's rubber is produced by two species of trees, the Hevea Braziliensis and the Castilloa, the original source of which is the Amazon river region. It was the seed of the Hevea, the rubber tree par excellence of commerce, smuggled out of Brazil in 1876, which laid the foundation of the vast plantation rubber industry in far-off Ceylon, the Malay Peninsula, Sumatra and other countries of the East Indies where about 2,000,000 acres are now under cultivation. To-day, this plantation product dominates the world's rubber trade; but it is not too late for Latin America to recover her lost prestige, as Brazil alone possesses abundant ideal rubber lands that could easily produce more rubber than the whole world requires. About 300 different tropical trees, vines and shrubs yield <; uayu | e a liquid which contains rubber, but only a few of these are rubber commercially important. One of the most interesting of them, at least to us, is the guayule shrub which has turned large tracts of formerly waste lands in Mexico into highly profitable fields. This stunted bush, from one to three feet high, grows wild on the elevated plateaus in the northern part of Mexico. It is also found to some extent in our states bodering on Mexico. This plant is distinct from the rubber tree in that its bark contains no latex, rubber itself being in the cellular tissues of the outer layers of its woody trunk and roots, and found to some extent in its branches and leaves. The epider- mis also contains resins and essential oils. The plant is crushed by machinery, and the rubber extracted by flotation. It yields an average of 12% of rubber. In 1918, our imports of guayule gum amounted to $1,341,000 all of which came from Mexico except $4,000 worth from Colombia. The growing scarcity of the guayule shrub in Mexico has led to extensive experiments in its cultivation in our states on the Mexican border. The result of these recent experiments promise to develop a new industry with us of large magnitude. It is found that the wild plant takes at least 25 years to mature, whereas it can be matured through scientific cultiva- tion in 4 years, and its average yield in rubber increased to 20 per cent, or more. The cultivation can be done wholly by machinery, from planting the seed and plowing up the plant at maturity, to extracting and preparing the crude rubber for the market. Extensive rubber plantations in Texas, New Mexico, Rubber Arizona and California are probabilities of the near future, plantation. The economic importance of developing, on a large scale, the * n tne ** 31 cultivation of rubber in the United States, is far-reaching, not only in this new source of productive wealth, but in solving our present problem of depending wholly on the outside world for our enormous requirements of crude rubber. Para rubber, which commands the highest price of all ^ r rubbers, is so called because the city of Para, at the mouth of the Amazon, was long the chief market for South American rubber, but Manaos, on the Rio Negro, 1,000 miles up the Amazon, has succeeded to this honor, although Para is still the principal point of exportation. Caucho or the aboriginal, cahuchu, from which evidently Origin comes the corruption, caoutchouc, is the earliest word applied of "rubber" to rubber. It was the English scientist, Priestley, who dis- covered in 1772, that it would rub pencil marks from paper to which is attributed its name known to us "rubber". The manufacture of rubber goods originated in the United States; the first great impetus being Charles Goodyear's in- valuable discovery at Woburn, Mass., in 1839, of means to vulcanize rubber a simple process of mixing sulphur with rubber and subjecting it to heat. Our leadership in rubber manufactures has been continu- ous until we now manufacture more rubber goods than the balance of the world combined. Of all articles imported into the United States free of duty, crude rubber is the most valu- able ($208,000,000), and is exceeded only by sugar ($222,000,- 000) among our dutiable articles of import. While we are preeminently the largest consumers of rub- ber, and have hundreds of millions invested in its manufacture, our capital invested in the production of crude rubber is neg- ligible. This vast industry, the annual output of which has reached a valuation of approximately ONE BILLION DOL- LARS, is at the mercy of foreign producers, controlled by foreign countries. Upon the outbreak of the European war, the British Government placed an embargo on rubber, much to the em- barrassment of our rubber manufacturers who were finally permitted to obtain urgently needed supplies of crude rubber, originating in the East Indies, under an agreement with the British Government which embraced a warranty that none of such rubber or its products would be disposed of to any coun- try at war with Great Britain. The Allies and their associates took every precaution to prevent rubber in any form from reaching the Central Powers, because of the great importance of rubber in warfare. The need for rubber became so acute in Germany that the bulk of the return cargo of the "Deutschland", the first merchant submarine to visit our shores, was made up of rub- ber. Germany was hard pressed for rubber, necessary for battery boxes in submarines, for tires, hospital service and 32 many urgent army and navy needs. She was forced to resort to many substitutes, and finally made synthetic (or artificial) rubber although at almost prohibitive cost. It is well known that artificial rubber which conforms to most of the tests of the natural product, can be produced chemically, but its cost is many times that of natural rubber. Have classes report upon the different methods of tap- ping rubber trees, gathering and coagulating the latex, and preparing crude rubber for the market. Paper and paper manufactures form one of our large items of trade with Latin America, our sales to her, in 1918, being valued at $20,304,000. We also sold her wood pulp ($834,000), and such paper stock employed in the manufac- ture of her purchases of roofing felt ($706,000). Our leading item of paper sales was newsprint ($5,404,- 000). When one reads a Latin American newspaper, his eyes P ur are probably fixed on invisible bits of our northern forests without even suspecting it. When one reads any other Latin American publication, whether books, magazines, pamphlets, catalogs or rnusic; uses blank books, writing paper and envelopes, blotting and carbon paper, wrapping paper and paper bags, cardboard and paper boxes, paper towels and napkins; signs a check or note, deed or mortgage; handles banknotes, stocks and bonds; decorates the walls with paper hangings; plays a social game of cards or employs paper in any form, anywhere in Latin America, one is apt to be in contact with the product of our paper mills. When visiting "La Prensa" in Buenos Ayres, it was gratifying to note that this famous newspaper was using American-made news- print, and that its mechanical departments were equipped prin- cipally with our machines and machinery. For magnificence in design and decoration of the building, and perfection in its equipment and appointments, this newspaper plant ^ great is probably the finest and best in the world. "La Prensa" (The new8pa per Press) claims to have a daily circulation of over 300,000 which is far in the lead of any other Latin American newspaper. Chemicals, dyes, drugs and medicines form another large item of our exports to Latin America which, in 1918, was Chemicals, nearly $28,100,000. Of this important trade, medicinal and dyc * pharmaceutical preparations alone represent $5,850,000. In no line of our large industries has greater efficiency been shown and quicker response given to the diversified and greatly increased demands brought upon us by the war than in chemicals, dyes, drugs and medicines. Our total exports of such products leaped from a valuation of $26,500,000 in 680% 1913 to the formidable sum of $180,300,000 in 1918; an in- crease, in five years, of 680 per cent! Our sales in 1918 to Latin America alone, exceeded by $1,600,000 the value of our entire exports of such goods in 1913. 33 War creations Explosives Fertilizers Importance of Cement Panama Canal Cement ships Before the war, we were content to allow Germany to maintain her grip on the chemical, dye and drug trade of the world, especially the Latin American field, but the war has created in us a new awakening and stimulated us to suddenly develop, on a large scale, a number of important industries that we had heretofore neglected, even to meet domestic needs. Our new vision and increased enterprise will enable us to prove to Latin Americans that we can be of as great service to them in lines relatively new to us as in old and tried ones. Locate in your home the articles of American manufac- ture which before the World War were usually made abroad. Dynamite, gunpowder, fuses and other explosives, exten- sively used in Latin American mining and blasting operations are chiefly the products of the United States, as may be judged by our sales of these products, in 1918, valued at $5,842,000. These sales do not include $1,000,000 worth of loaded cart- ridges, shells and projectiles. It is an interesting fatality that the deposits of Chilian nitrates are blasted out of their repose of centuries by the destructive force created by these same nitrate fields. Chilian nitrates probably formed an important part in the manufacture of our fertilizers which we sold to Latin America, in 1918, to the value of $3,865,000. In 1918, we shipped to Latin America 2,482,336 barrels of hydraulic cement, valued at $5,675,000. There is no material more widely used in modern con- struction, whether in building construction or public works; none for which Latin America will find more increasing needs, and which can be best supplied by the United States, since we lead the world in cement production. While we do not yet equal the ancient Romans in the quality and durability of our mortar, we have found that cement, reinforced with steel, is not only cheaper than stone, but stronger and more durable. Without the extensive use of cement in building the dams and locks of the Panama Canal, that surpassingly great engineering accomplishment would have been almost im- possible. Years ago, Edison predicted that the time was near at hand when we would be pouring cement into standardized molds in the construction of buildings, rather than engage the time of architects and builders in the many details of old methods, a prophecy already realized in many forms of construction, even in ship-building. 34 A novel process of applying a cement, called "gunnite", to steel or wood framing, covered with wire netting, is by "Shooting" means of a "cement gun" which squirts this sticky substance cement in a stream, forming walls and roofs of buildings with great rapidity. Discuss the special reasons calling for greater use of cement construction in Latin America, especially in the tropics. One of our largest items of export to Latin America is leather and leather manufactures which, in 1918, amounted American to $28,313,000 of which $17,911,000 or over 63% of this trade shoes was in manufactures. Of these manufactures, $16,516,000 is represented in the sale of 8,387,861 pairs of boots, shoes and slippers. Of this footwear, 3,199,458 pairs of boots and shoes were for children, 2,685,457 pairs for men, and 2,429,615 pairs for women, while the 73,331 pairs of slippers sold are not specified. These formidable sales not only indicate a growing ap- preciation of our footwear which enjoys a world-wide repu- tation, but they point to the more gratifying importance of the growing use of shoes throughout Latin America. In a recent visit to Cuba, I was surprised to find prac- tically everybody, even to the little picaninny in rural dis- Pic jf m ? m f 8 tricts, well shod. This pleasing transformation from the wc time of my previous visit to the island, twelve years ago, when the bulk of the native population, of all ages, were still in bare feet, is particularly encouraging. Shoeless people, of whom there are still millions in ^ fect tropical America, not only indicate a low standard of living, menace but they are subject, in tropical and sub-tropical countries, to hookworm and other diseases. The admirable work of the International Health Bureau (Rockefeller Foundation) in Latin America to eradicate these diseases through organized effort in educating the people and government officials in preventable causes, is of far greater consequence in promoting American commerce than merely creating an increased demand for shoes. The more we can help Latin Americans to improve their ds f welfare, increase their purchasing power and enable them to c * adopt a higher standard of living, the less we shall need to a concern ourselves about improving our relations and increas- ing our commerce with them. "American Shoes" is a familiar sign in every language and in every civilized country in the world. How can we best maintain the fine reputation of our footwear? 35 Latin American culture Attrac- tive cities Throughout this study, we have sought more to picture the great masses of the peoples of Latin America and the effect of our industry and commerce upon them; but it must not be imagined that Latin America is one vast wilderness, inhabited wholly by the semi-civilized man of the jungle and others still living in the most primitive fashion. Such at- tractive capitals as Buenos Ayres, Rio de Janeiro, Montevideo, Santiago, Lima, Mexico City and Havana testify abundantly to a high degree of culture and refinement among a large class of Latin Americans and to their enjoyment of almost every comfort, convenience and luxury of modern life. Buenos Ayres, the second largest Latin city in the world, even has an up-to-date subway system. The larger cities of Latin America are generally of a fine type of European architecture and adornment, containing splendid public and commercial buildings, libraries, art gal- leries, museums, hospitals, schools, churches, theatres, clubs and many magnificent homes. Aesthetic tastes and love of the beautiful are also shown in spacious avenues, attractive plazas and beautiful parks and gardens; all tastefully adorned and splendidly maintained. We have no opera house or theater comparable to the Colon Theater in Buenos Ayres; none so pretentious in gor- geous decorations and exquisite furnishings as the National Theater in San Jose, built by the Costa Rican government at a cost of $1,000,000. None of our luxurious city clubs can compare in magnificence to the Jockey Club in Buenos Ayres. Latin Americans have a passionate love for music and song, an inheritance from their romantic Latin ancestry, in- tensified by nature's charm in the warmth of climate and luxuriant vegetation of Tropical America. An orchestra or band plays regularly for the enjoyment of the public, after- noons or evenings, usually in the principal plaza of almost every town of any consequence. In capital cities or other towns where there is a garrison, a military band usually fur- nishes the music, but in other cities and towns it is supplied by the municipality or some private organization. The musical education of children is rarely neglected; the instruction or boys being considered almost as important as that of girls. The guitar is more commonly seen there than are banjos in our Southern States. It is universally used as an accom- paniment to sentimental songs in the peculiar Spanish rhythm typified in "La Paloma", and frequently heard in serenades to some admired Sefiorita in the stillness of the night. I have frequently found our phonographs and player pianos furnishing the most enjoyable form of entertainment phonographs during long voyages on coastal and inland steamers, on the farm and ranch, and at mining and timber camps; grinding 36 out at remote places in Latin America, all classes of music, from ragtime to classical operas, and all kinds of songs and quality of voices, from amusing coon songs to the thrilling voice of Caruso; songs, too, of the concert hall and street, in Spanish and English, from "La Golondrina" to "A Little Bit of Heaven"; from "La Mattchiche" to "Hello Broadway". In 1918, we participated in gratifying Latin America's musical tastes through sales to her of musical instruments, records and perforated music rolls, to the value of $2,630,000, instrument* not including a quantity of printed music, the value of which is not accessible. Our sales of musical instruments included 4,142 pianos, 1,770 player pianos, 369 organs and 17,637 phono- graphs, graphophones, and gramophones. Another evidence of the aesthetic tastes of Latin Ameri- cans is. disclosed through our sales to them, in 1918, of black- ing and polishes to the value of $652,000! While these sales include metal and other polishes, much the larger part of them was material employed in cleaning and polishing shoes. True to Spanish custom,' Latin Americans are generally more careful than ourselves in maintaining a high polish on their shoes, although often to the neglect of other parts of their wearing apparel. In Spain, it is not uncommon to see a man shabbily dressed, yet with a glistening polish on shoes badly in need of repair. Shoeshining is a striking specialty of the Spaniard. I do not know of any country whose people of all classes give such scrupulous care to polishing their shoes as in Spain. "Limpia-botas" (shoe-black) is one of the most common street signs in the cities of Spain where, in well-appointed shoeshin- ing places, one obtains the best of shoeshines at the standard price of 10 centavos (2 cents) to which one is expected to add a tip of one cent. In Latin American cities, the price of a shoeshine usually ranges from the equivalent of two to five cents, but I was Havana fairly staggered at Havana when asked to pay 20 cents for Shoe hmet cleaning a pair of ordinary low white canvas shoes, such as are commonly worn there. With the desire to be convinced that there was nothing about my manner or attire in a Palm Beach suit, Panama hat and canvas shoes, and without flashing a "headlight" or having other exterior trace of affluence, to warrant being taken for a multimillionario or one of our reck- less spendthrifts, I inquired the price at several shoeshining stands in a stroll down the Prado, only to be assured at each of the American-made oak brass-trimmed outfits that veinte centavos (20 cents) was current, but they thought it insuffi- cient compensation. Have a class match on the articles in which cotton is used, requiring each pupil to name at least five. 37 King Cotton Future cotton fields u. s. produces 75% of world's cotton Cotton manufac- tures Thanks to mechanical inventions and our enormous pro- duction of cotton, it is the most widely used staple in the world; not only in cotton fabrics, but in such as is mixed with wool, linen and silk. Cotton enters into an endless number of manufactures, and is of great value in medicine, surgery, dentistry, many arts and sciences, and in the pro- duction of that high explosive, gun-cotton. Moreover, its seeds furnish oil and meal of great industrial value, and uses are even found for the stems and leaves of the plant. It would be difficult to overestimate the beneficence of the cotton plant as an agent of civilization. Measured in dollars, cotton is usually the most valuable agricultural product of the United States, with the single exception of corn, despite the fact that its cultivation is con- fined to our Southern States, while corn is produced in every state of the Union. Most of the countries of Latin America have large areas well suited to growing cotton, but its cultivation there has not yet assumed much importance, except in Brazil, Peru and Mexico. Latin America has made even slower progress in cotton manufactures. The bulk of her cotton mills are in Brazil and Mexico, but they make only the coarser grade of cloths, and supply but a small part of domestic requirements. Latin America is only beginning to pass through the same process of evolution in cotton manufactures through which we passed and are still passing, and it will likely be many years before she even approaches what we have accomplished in this line. In the meantime, as the United States produces about three-fourths of the world's cotton, Latin America must nec- essarily depend upon us for the greater part of the cotton necessary for her large requirements of textiles, whether such fabrics be made by herself, ourselves or other nations. Divided into great groups, and measured in dollars, textiles form Latin America's most important item of imported finished manufactures. Until recent years, we have taken relatively small part in this large trade, owing to the strain upon our productive capacity to keep pace with our enormously in- creasing domestic demands in these lines. But there is no nation so fortunately situated and so abundantly capable to dominate this tremendous trade as the United States, espe- cially in cotton goods. Our rapidly growing progress is indi- cated by our sales of cotton and cotton manufactures alone, in 1918, to the value of $91,600,000! These sales include, however, raw cotton, cotton linters, mill waste and rags, valued at $2,426,000; the remaining sum being for yarns, threads, cloths, knit goods, laces, embroideries and other cotton manufactures. 38 There is an ever increasing demand for fabrics, not only in Latin America but all over the world, owing to constantly increasing population and the rising standard of living. Just imagine the increased demand for cotton cloth that would be created by every woman and girl in Latin America Our effect requiring one more petticoat a year or by every man wanting on the a nightshirt! Fancy the strain on our productive capacity if wor W* every Chinaman and Russian were to suddenly demand an- wardrobe other cotton shirt! The war of 1812 gave us the first real stimulation in home manufactures, and the development of textile industries was particularly rapid. In 1800, our cotton mills consumed but 500 bales of cotton; in 1810 the consumption had grown to 10,000 bales; but by 1815 our mills were consuming 90,000 bales. Since 1815, our textile industries have steadily grown, and enormously during the World War, until our domestic consumption of cotton is about 6,500,000 bales annually. In 1913, we exported 9,521,881 bales or about 67% of the year's crop ; while in 1917 our exports dropped to 4,528,844 bales or 40% of the year's production. While this large sud- den decrease was due, in part, to embargoes placed on our cotton, it was the first year since the Civil War in which we exported less than half of our great production of raw cotton. Make a spot map of the United States showing from which points our industries affect the daily life of Latin America. Following the war of 1812 and until recent years, our thoughts and interests were turned from foreign trade to our great domestic expansion. We allowed our ships which domi- nated the seas of the world a century ago, to all but disappear, t h e flag and otherwise displayed lack of interest in a larger and broader development of foreign markets for our goods. But another and greater war has again changed the trend of our thoughts and revived our interest in foreign trade, stimulating our tardy purpose to reinstate "Old Glory" to its rightful importance on the high seas. Among our plans and purposes for greatly enlarged ac- tivities throughout the world, none should be pursued with greater energy, and in a broader and more liberal spirit, than the cultivation of mutual helpfulness in eur relations with Latin America; leading to a spontaneous feeling of inter- dependence and solidarity of interests among the peoples of the New World. 39 Notes on the Table* The summary of our commerce with Latin America in 1913 and v 1918, by individual countries and groups of countries, is presented on page 45, in a form not found in any other publi- cation. Facts are given for three natural geographical groups Mexico and Central America, the West Indies and South America and for all of them combined, which it is felt will prove the most rational and helpful form for business men and students in their study of this rapidly growing trade. This and other tables and statements with reference to our foreign commerce are compiled from data contained in Foreign Com- merce and Navigation of the United States, published by the Bureau of Foreign and Domestic Commerce of the Department of Commerce. This annual statistical publication of our for- eign commerce is for fiscal years ending June 30, which is the period referred to throughout this pamphlet instead of calendar years. The Pan American Union distributes a large variety of instructive and interesting information concerning the twenty Latin American republics and our trade relations with them. While this valuable service covers the bulk of the vast terri- tory embraced in the geographical term, Latin America, sta- tistics of the trade of the United States with Latin America are necessarily incomplete without adding our commerce with the British, French and Dutch possessions within that terri- tory. The absence of this information from the published statistics of the Pan American Union is no reflection, how- ever, on that splendid organization, as the scope of its service is confined to such countries as compose its membership the American republics. While Porto Rico is properly a part of Latin America, its trade is not included because this island is domestic territory. It is shown separately, however, at the foot of the table. The trade of Porto Rico has greatly increased since that charming island became United States territory. In 1918, its total im- ports were $63,389,000 and its exports $74,294,000. This total trade of $137,683,000, over 90% of which was with continental United States, shows an increase of $51,679,000, or 60% over that of 1913. Our trade with the Virgin Islands of the United States is included in the tables because these islands are of such recent acquisition, and it seems desirable to compare our trade with them in 1918 with that of 1913, when they still belonged to Denmark. On January 17, 1917, the date of the treaty of sale, these islands passed under full sovereignty of the United States, but we did not take formal possession of them until March 31, 1917. While this group is composed of about fifty islands, only three of them St. Thomas, St. John and St. Croix are of sufficient size to be known by name to any but geographers and local inhabitants. These three islands have a combined area of only 132 square miles or 84,480 acres. 40 The fancy price of $25,000,000 paid for this group of islands is a larger sum than was ever paid for any of our terri- torial acquisitions, not excepting the Louisiana purchase ($15,000,000), Mexican cession ($18,250,000), Gadsden pur- chase ($10,000,000), Alaska ($7,200,000), and the Philippine Islands, Porto Rico, etc. ($20,100,000). We would have acquired the Danish West Indies in 1902 for the agreed price of $5,000,000 but for a tie vote in the Landsthing or upper house of the Danish Parliament, thus defeating by this narrow margin the treaty already agreed to by the Folkething or popular house, and ratified by the United States Senate. The table on page 45 includes our exports of foreign mer- chandise to the value of $16,308,000, but it does not include any of the transit or transshipment trade with Latin America. In 1918, the value of goods in this trade, passing through the United States to and from Latin America, was $81,370,000. Neither does it include the traffic in gold and silver, including coins, of which our imports from Latin America, in 1918, amounted to $76,646,000 and our exports to her $54,628,000. The increased values in our commerce with Latin America in 1918 over those of 1913 show the following percentages: Imports 128.3%, exports 122.5% and total trade 125.8%. These gratifying results must not be taken, however, at their face value, as there are two important ways in which dollar totals, statistically stated, are inaccurate indexes of trade growth: (1) Prices in 1918 were so much higher than in 1913 that the same quantity of goods must be described in far larger number of dollars. The Pan American Union states that an average increase of 50% in the price of goods im- ported from Latin America and 80% in the price of our goods exported to her is a conservative estimate of current prices in 1918 as compared with pre-war prices. (2) Customhouse valuations in the foreign trade statistics of all countries are generally less than real commercial values. The Pan Ameri- can Union estimates that the value of our imports from Latin America is understated from 15 to 20% ($157,000,000 to $209,000,000), and our exports to Latin America from 10 to 12% ($76,00,000 to $91,000,000). In applying these important factors, using the lowest estimates above, we find that the real comparative increases from an industrial point of view, by which we mean quantities, based upon similar prices of goods in 1913 and 1918, is but 52% in our imports, 24% in our exports and 39% in our total trade with Latin America. Going back two decades into the official statistics of our commerce with Latin America, we find the following inter- esting comparison with our trade in 1918 at each 5-year period : Imports Exports Total Trade Increase Increase over 1913. . .$586,936,000 $418,526,000 $1,005,462,000 125.81% Increase over 1908... 757,308,000 523,585,000 1,280,893,000 244.59% Increase over 1903... 803,463,000 630,887,000 1,434,350,000 387,42% Increase over 1898... 896,175,000 674,355,000 1,570,530,000 671.01% 41 The table on page 47 shows that in 1913 we already en- joyed a much larger per capita trade with Latin America ($9.63) than with any other large division of the world, with the single exception of British North America (Dominion of Canada, Newfoundland, Labrador and Bermuda). The table on page 46 shows that Latin America's per capita trade with us jumped to $20.40 ($21.50, including Porto Rico) in 1918. Had her per capita trade with us equalled that of Cuba ($199,80), the value of our total trade with her would have been over nine times as great, an in- crease of $16,000,000,000 ! Had the per capita trade of the world with us in 1918 equalled that of Latin America ($21.50), the value of our total foreign commerce would have been $35,475,000,000 in- stead of $8,865,000,000. Had it been possible for the per capita trade of the world with us to equal that of Cuba, it would have amounted to the colossal sum of $330,000,000,000 ! These statements are predicated upon the world's estimated population in 1918 (outside of the United States) of 1,650,- 000,000. But a foreign trade of such fantastic magnitude defies all present calculations, as it is about six times greater than the approximate value of the combined international trade of the world. Students will find the table on page 48, showing the dis- tribution of our foreign commerce with the principal countries of the world and by world divisions, and the value and per- centage increase or decrease with each in 1918 over 1913, of special interest at this time, as it discloses the effect of the World War on the changed course and volume of our trade with the different parts of the world. During the titanic struggle in Europe, the productive forces there, of both belligerent and neutral countries, were centered in supplying war necessities and essential domestic needs. Europe had relatively little to sell us, whereas she clamored for almost everything that we could send her, espe- cially munitions, war materials and necessities of all kinds. After the United States entered the war, we poured goods and materials into Europe in such tremendous volume as to amaze even ourselves. The raw products of Latin America contributed immensely towards making this possible. The markets of the Central Powers (Germany, Austria- Hungary, Turkey and Bulgaria) were almost closed to us through blockades and embargoes following the outbreak of the war. After we entered the war these markets were entirely cut off, except such small shipments (principally with Turkey in Asia) which for various reasons were author- ized. Thus it was that our imports from Europe fell off in 1918, as compared to 1913, nearly 54%, and our exports to her increased over 152%. In normal times more than half of the value of our entire imports come from Europe, whereas in 1918 she contributed but 14% of them. Europe took, how- ever, 63% of the value of our entire exports in 1918, and 70% of them in 1917 and 1916. 42 As the United States had become the greatest source and principal entrepot of war and world needs, we were ransacking the remotest corners of the globe for hides and skins, tanning and dyeing materials, crude rubber, oils and fats, certain metals, edible substances, wool, fibers and all other useful raw products for manufacture or preparation, necessary to the sudden enormous expansion of our manufacturing capacity. Our production grew to such unprecedented extent as to be in the unique position of virtually rationing the world with many of its essential requirements, in such measure as war necessities and our own domestic needs permitted, and de- pendent always on the problem of ocean transportation, a difficulty not yet overcome. In view of our commanding position as the largest market, the greatest manufacturing center and at the same time the money center of the world, a combination of power and opportunities unique in the history of any nation, it is not surprising that our foreign commerce was given such tremen- dous impetus during the war, and that our imports from such parts of the world where we could buy raw materials Latin America, British North America, Asia, Oceania, and Africa exceeded our exports. The increase in our trade with China, Hongkong, Japan, Russia in Asia, the East Indies, Philippine Islands, Australasia, and parts of Africa, is particularly striking. Seventy-three per cent, of our trade with "all other countries" was due to various countries of Asia and Oceania, principally Chinese territory leased to Japan. This trade with "all other countries" is distributed among the divisions of the world to which each country belongs, and accounted for in the summary of "distribution by world divisions." Let us conclude with further evidence that we can no longer afford to underestimate the importance of Latin Am- erica to us. Of the value of our entire imports in 1918 ($2,946,000,000), 35.45% came from Latin America, as com- pared to 25.23% in 1913; of the value of our entire exports ($5,920,000,000), 12.84% went to Latin America, as compared to 13.86% in 1913 ; and of the value of our total foreign com- merce ($8,865,000,000), 20.36% was with Latin America, as compared to 18.68% in 1913. Of the increase in value of our entire foreign commerce in 1918 over 1913 ($4,586,474,000), 51.82% of the imports, 12.12% of the exports and 21.92% of the whole was due to Latin America. These facts accentuate the opening paragraphs of this pamphlet and the evidence in How Latin America Affects Our Daily Life that we have greater need of Latin America than she has of us, a need that will grow apace with the coming years. Our ever growing requirements of Latin American products also emphasize the importance of the United States to Latin America as the most convenient, largest and best market in the world for her products. Plandome, Long Island, N. Y. W. J. DANGAIX September 16, 1919 43 OUR SALES TO LATIN AMERICA 1918 These exports are confined to domestic products and manu- factures, including commodities of foreign origin which have been changed from the form in which they were imported, or enhanced in value by further manufacture in the United States, such as sugar refined from imported raw sugar, and articles and utensils made from imported ma- terials. The figures do not include strictly foreign merchan- dise of which we exported to Latin America, in the same period, to the value of $16,308,116, or gold and silver, includ- ing coins, to the value of $54,628,518. The period is for the fiscal year ending June 30, 1918. 1. Metals and metal manufactures $195,649,274 2. Foodstuffs and feedstuffs 135,439,665 3. Cotton, wool and silk and their manufactures 102,018,032 4. Non-metallic minerals and their manufactures 41,578,470 5. Mineral, vegetable and animal oils 40,439,090 6. Automobiles, cars, wagons and other vehicles 32,399,066 7. Leather and leather manufactures 28,313,544 8. Wood, lumber and wood manufactures 28,232,389 9. Chemicals, dyes, drugs and medicines 28,094,584 10. Paper and paper manufactures 20,304,262 11. Rubber manufactures 10,427,819 12. Binder twine, cordage and other fiber manufactures 10,223,568 13. Soaps and greases 8,733,611 14. Paints, varnishes, inks, glue, paste and polishes 8,344,826 15. Cartridges, gunpowder, dynamite and other explosives 6,841,615 16. Agricultural machinery and implements 5,651,713 17. Candles, paraffin and wax 5,039,839 18. Fertilizers 3,864,668 19. Naval Stores (rosin, turpentine and pitch) 3,781,760 20. Musical instruments ' 2,629,983 21. Live animals (cattle, horses, mules, hogs, etc.) 2,290,378 22. Wines, beers, liquors and other beverages 2,143,972 23. Tobacco and tobacco manufactures 2,140,995 24. Photographic goods (including motion-picture films) 1,944,793 25. Surgical and scientific instruments and appliances 1,793,648 26. Perfumeries, cosmetics and other toilet preparations 1,494,426 27. Hats and hat materials 1,119,399 28. Miscellaneous (50 items, each less than $1,000,000).. 12,973,011 Total. . ..- .$743,908,400 Students should try to translate these already great totals into local terms such as the number of days of work in- volved, number of animals, of automobiles, harvesters, loaves of bread, etc. 44 l!iffl-il!li!lff.i|lll^i!lllff|fpi l&lsSjinFF jfKIM- i- r 5 n s;- 3 -^ S P i 3 5| Ml i-i i I s. I 5 s I s S 1 VI ** SI tc co to S :.;_ - i H- co 01 00 i- & CO ^3 CO 2 S g 8 2 S 8 S n 13 9k M 5 d5 8 * ~O * co -o i oo en ooco * to M 9 B tt tp > ii to o o o ^ oo w 800 yi 01 tn *> en oo en yi o i- en >- S w w en O w SB 5 8 8 co 8 TD 01 Vo yi co 35 10 *^j oo "^ A. 01 co b> -0,fe-' ! i's "si tooS co to co -j to $ S o CO ^^ (O ^ O ^2 tO CO to H- ^ (-> *. CO W 00 *. H* CO 05 tO *. CO W 00 *. H* _CO I So co o co o O> to cn E to M co en P s s s s g s g a H-eoH-o^Jht-ooai to "M To en en (> ^> en O Ol ->cocnco rn oo to t> 10 8 vo ^^ 2 JT 1 ^* ^ M ^ 53 a a s s s si a s t> t> Ift^ rH C* 'f e^ o T< lO O CO M 1 03 iS fa d s cc a i I I r ^l < NtOO5 N CO r-i t> rf ^ tD tH O t> t> 00 CO r}< 00 C^ i-f rH 00 O CO 5 s a * a ^ t^ O "^ ^ C*- C^ xO S O (S S 00 -I I |IS Sil 5 i s s 8 s s 3 ^ s rt cn S ^ a s : I S a a P II i : il a -S .2 PS 05 U K 48 5 I I : :. Items not commented upon in the text, for want of space Nos. 19 and 21 to 27, inclusive, of our classified sales on page 44; and the following which are included in other items of that table: Paints and varnishes $6,616,000 Toilet and other soaps 6,282,000 Glass and glassware 5,950,000 Cottonseed, corn and other vegetable oils 5,796,000 Wool manufactures 5,556,000 Earthenware, stoneware and chinaware 2,654,000 Silk manufactures 2,378,000 Asbestos manufactures 794,000 Printers' and other inks 669,000 Salt 593,000 Artificial silk manufactures 423,000 Glue, mucilage and paste 409,000 Stone, marble and grindstones 408,000 Emery wheels and other abrasives 389,000 Graphite and its manufactures 272,000 Asphaltum and its manufactures 228,000 Oakum 153,000 Typewriter ribbons 112,000 Fish, lard and other animal oils 104,000 Also the following list of miscellaneous items: 29 items of export above $100,000 in "Miscellaneous" 1. Shoe findings $943,000 2. Broomcorn, brooms and brushes 835,000 3. Toys 792,000 4. Pencils and pencil leads 782,000 5. Roofing felt 706,000 6. Oilcloth and linoleum 701,000 7. Notions 687,000 8. Buttons 626,000 9. Household and personal effects 616,000 10. Suspenders and garters 566,000 11. Straw and palm-leaf manufactures 551,000 12. Celluloid manufactures 493,000 13. Furs and skins 440,000 14. Athletic and sporting goods 434,000 15. Seeds and nursery stock 426,000 16. Dental goods 420,000 17. Cork manufactures 373,000 18. Imitation leather 343,000 19. Umbrellas and parasols 303,000 20. Trunks and traveling bags 258,000 21. Matches 231,000 22. Motor boats 208,000 23. Chewing gum 166,000 24. Refrigerators . . N 131,000 25. Animal hair manufactures 112,000 26. Plaster 104,000 27. Wall boards (substitute for plaster) 104,000 28. Art goods 104,000 29. Billiard tables and accessories 103,000 Each of these totals suggests great future possibilities of serving Latin Americans, especially if classes will estimate the number of different retail sales implied by these total export values. COPYRIGHT 1920 by INSTITUTE FOR PUBLIC SERVICE How We Affect Latin America's Daily Life (48 pp.) 3CK cents; in quantities 25 cents, gives pertinent facts about our relations with Latin America; shows dependency on our products; explains growth of trade and future possibilities. Complete table of sales to each country. How Latin America Affects Our Daily Life (32 pp.) 20 cents, in quantities 15 cents, shows Latin America's contribution to our daily life and future comforts. Many facts of vital importance. Teachable Facts About Bolshevism and Sovietism (32 pp.). 10 cents. Nutshell information about this subject. Its extent, claims, performances. Liberty the Giant Killer (104 pp.) cloth bound. 65 cents. A reader for grades three and four that affords the main truths of the World War in striking hero tales that the young folks will enjoy. Americanization Words for Spelling Drills (40 pp.) 20 cents, in quantities 15 cents, contains 1,426 words from five important American documents, arranged for spelling drills and spelling bees. Public Service Weekly, yearly subscription 50 cents, circulates facts, suggestions and construc- tive criticisms in the field of education. Unconditional Surrender Civics (64 pp.) 10 cents. Civic Lessons from War Facts (80 pp.) 10 cents. Peace Table Playlet, with commencement sugges- tions. 10 cents. Teacher Benefits from School Surveys 10 cents. High Spots in New York Schools (128 pp.) 10 cents. Rainbow Promises in Education (88 pp.) 25 cents. Record Aids in College Management (128 pp.). Cloth, $2.50. Any of the above publications sent on approval. INSTITUTE FOR PUBLIC SERVICE William H. Allen, Director 51 Chambers Street, New York City