CHAPTER XXXI

AMERICAN TRADE OPPORTUNITIES

The great development of the southern part of the New World, extending

from the Rio Grande to the Strait of Magellan, certain to take place

as a result of the opening of the Panama Canal, spells opportunity for

American commercial expansion. This vast territory, covering an area

nearly three times as great as that of the United States, has a

population of only 50,000,000. Its resources have been merely

scratched on the surface. Its potentialities, acre for acre, are as

great as those of the United States.

Porto Rico will serve for a criterion by which to measure the future

possibilities of this Empire of the South. In Porto Rico one may see

the benefits of the institution of a really good government, and the

success which attends a proper effort to develop natural resources in

tropical America. If American opportunities in all Latin America may

be measured by American successes in that island, then, indeed, the

future is rich with promise. During a single decade the external

commerce of this little gem of the West Indies was more than

quadrupled. It now amounts to some $80,000,000 a year, and only about

12 other countries in the world buy more goods from the American

manufacturer.

The expansion of internal business has kept pace with the growth of

external commerce. In seven years taxable values increased from less

than $90,000,000 to more than $160,000,000. In a single year the

amount of life insurance written in the island nearly doubled, and

fire insurance increased nearly half. The exportation of sugar

increased fivefold in 10 years, and the exportation of cigars 14

times. The population of the island has increased by half under the

beneficient policies of the United States, going up from 800,000 in

1898 to 1,200,000 in 1912. During a single year Porto Rico buys about

$35,000,000 worth of goods from the United States, and ships

practically the same amount to this country.

Should all Latin America prove as good a customer in proportion to

area as Porto Rico, our trade with Latin America alone would be many

fold greater than the entire foreign trade of the United States

to-day. Should all Latin America, even with its present population,

buy as liberally from the United States as Porto Rico does, we would

sell annually to it nearly $2,000,000,000 worth of products.

The most necessary step in developing the potentialities of Latin

America is to provide good and stable government. Commercial

statistics show how prosperity flourishes where good government

reigns, and of how poverty dwells where misgovernment exists. One may

go to Porto Rico, to Jamaica, to Curacao, or to St. Thomas, and in

each of these countries may behold the wholesome rule of northern

Europeans and their descendants. The people have at least those

substantial rights which are necessary to the peace, happiness, and

well-being of humanity; and equally without exception trade statistics

show a greater foreign trade, in proportion to area and population,

than is enjoyed in any country where misrule prevails. Porto Rico

could be buried in a single lake of Nicaragua; it is only

one-fifty-seventh as large as Central America; and yet Porto Rico has

a foreign trade greater than all the territory from the Isthmus of

Tehuantepec to the Isthmus of Panama.

How to improve governmental conditions in those countries where

misrule prevails is a most serious problem. Had it not been for the

Monroe doctrine it is safe to say that not one of the Republics of

tropical America would be in existence today. Instead, their territory

would be colonial possessions of the several powerful nations, and

their people would be living under the comparatively wholesome rule of

those nations. As it is, in a majority of the Republics south of the

Rio Grande there is a state of affairs which makes against the

development of resources and the best interests of the people. The

whole theory under which these countries are governed is that

primitive one: "Let him take who has the power, and let him keep who

can." The result is that they are Republics only in name, and that the

only way to change administrations is to have a revolution.

Revolutions mean poverty; poverty means undeveloped resources, and so

in some of these countries conditions were as bad in 1913, after

nearly a century of so-called republican rule, as they were when the

yoke of Spain was thrown off in 1821. How to bring about those

conditions of peace and amity essential to national growth and

development in these countries is the problem that has vexed more than

one administration in Washington.

Some have answered that the best way to do it is to abrogate the

Monroe doctrine and to let every Latin American tub stand on its own

bottom, a proposal that might benefit these countries vastly, but

which contains many possibilities of evil to the United States. Others

have suggested that our experiment in Porto Rico offers the solution

of the problem, at least so far as tropical North America is

concerned. They assert that the end would justify the means, and that

the planning of the same character of government in this territory

that exists in Porto Rico today, would be the greatest godsend that

the masses of the people of these countries could have. Still others

have advocated a "hands-off" policy so far as the rule of these

countries is concerned, allowing them to fight whenever, and in

whatever way, they wish, but at the same time adhering rigidly to the

Monroe doctrine against European interference.

Whatever the ultimate conclusion, it seems useless to hope for

prosperity and expansion in countries whose industries constantly

suffer from the galling blight of ever-recurring revolution. The great

problem that lies before the American people, if the Latin America of

the future is to become like the Anglo-Saxon America of today, is that

of devising a policy which will insure conditions of peace and good

will in the several sword-ruled countries south of the Rio Grande.

As matters stand today in the majority of the countries of Latin

America, although their Governments owe their very existence to the

United States, there is a feeling of antipathy against Americans,

which places the American exporter on an unequal footing with his

European rival. There is a prejudice against Americans, partly the

result of a widespread feeling that the United States is the great

land-grabber of the Western world, but mostly the result of the

attitude of a large number of Americans who go into these regions. For

instance, for years one could not go about the streets of Mexico City

without hearing some American berating the "blankety blank greasers,"

and asserting that the United States could take 5,000 men and capture

Mexico City in a two-month campaign. It happens that the Mexican is a

proud individual and naturally he bitterly resents such asseverations.

The same is true elsewhere, and by personal contact prejudice rather

than a feeling of friendship has been aroused. The European usually

goes into these countries because there are few opportunities at home.

He is usually representative of the best citizenship of his homeland,

and quite as much the gentleman in Latin America as at home. While

there are a great many splendid types of American citizenship

scattered throughout Latin America, a greater number of people have

gone there because they could not get along in the United States, and

their hostile attitude toward the natives excites by far more

prejudice than the better class of Americans can counteract by

sympathy and good feeling. Americans who visit these countries

expressing contempt for everything they see, and everything the people

do, are the greatest hindrances to the realization of the commercial

opportunities which the United States possesses in Latin America.

If the manufacturers of the United States are to realize to the full

the benefits which may be derived from the opening of the Panama Canal

they will have to reform their methods of dealing with the Latin

Americans. It is just as effective to send to buyers at home catalogs

written in Greek or Sanscrit as to send to the majority of Latin

Americans catalogs printed in English. In traveling through these

countries, endeavoring to ascertain wherein Americans have failed in

their efforts to get a proper share of their foreign trade, one hears

on every hand the complaint that the American manufacturer seldom

meets the conditions upon which their trade may be based. No

satisfactory credits are given, and no effort is made to manufacture

machinery fitted to their peculiar needs. Agricultural machinery, for

instance, which may serve admirably in the United States, is wholly

out of place in many of these countries; and yet the Latin American

customer must either buy the surplus of these machines or go elsewhere

for machinery built to answer his requirements.

The European traveling salesman in these countries carries a line of

goods immediately answerable to local requirements. Furthermore, the

European exporter understands that the system of credits in Latin

America is not the same as prevails in Europe and the United States,

and he complies with their requirements. Of course, his prices are

placed high enough so that he is nothing out of pocket for the seeming

concessions he had made. The result is that in traveling in these

countries, one meets three or four foreign "drummers" where he meets

one American traveling man, in spite of their nearness to the United

States. It will take years, even with the Panama Canal in operation,

to overcome the disadvantage which bad business policy has placed upon

the American manufacturers.

If the opening of the Panama Canal spells new American commercial

opportunities, it also develops a new field of international politics

in which the United States must make itself the dominant factor, and

in which it will have a transcendental interest. It will

unquestionably give to the Monroe doctrine a new importance and render

its maintenance a more urgent necessity than ever. Prior to this time

the breaking down of the Monroe doctrine would have been greatly

detrimental to the interests of the United States, but from this time

forth the domination of the Caribbean by some other strong nation

would likely prove most disastrous to American welfare. It might even

lead to the loss of the canal itself, and we then would witness that

great waterway transformed from a military asset of immeasureable

benefit into a base of operations against us.

Probably the chief danger to which the Monroe doctrine is exposed is

from those countries whose rulers profit most by its enforcement.

While the United States can control its own affairs in such a way as

not to bring into question this doctrine, it is not so certain that

the rulers of some of the Latin American nations will always do as

well. In fact, some of the countries have conducted their affairs in

such a way as might have involved the United States in a war with a

foreign power. The knowledge that a small tropical American republic

might act so as to force the United States into a critical situation

has resulted in a desire on the part of the responsible authorities at

Washington to exercise over the Republics of the Caribbean such a

guiding control as would serve to prevent them, through any

ill-considered or irresponsible act, from exposing the United States

to dangerous controversies with foreign nations.

For instance, here is a country which owes a large debt to British

bondholders. It defaults on the interest for a period of years.

Efforts to collect are futile. Finally it is decided by the President

that he needs additional funds. He reaches an agreement with the

representatives of the bondholders, by which they agree to refund the

debt and to lend him an additional half a million dollars, upon the

condition that he hypothecate the Government's export tax upon coffee

to secure the amortization of the refunded debt. He does so. Matters

move along quietly for a little while, but soon he needs additional

funds. He negotiates with New York bankers, getting from them the

funds he needs, and hypothecates with them the same coffee tax that he

had hitherto hypothecated with the British bondholders. Of course, the

British bondholders protest at this impairment of their securities.

He laughs at their protest. England sends a warship to his ports. He

appeals loudly to the United States for the maintenance of the Monroe

doctrine; but the United States does not hear him, so he decides to

treat the British bondholders fairly. If he had not done so, and

England had been seeking to break down the Monroe doctrine, an ideal

opportunity would have been afforded.

It is to prevent such situations as these that many Americans hope

that the Government may devise some plan that will at once protect the

United States from such menaces, and at the same time allow the people

of these countries to work out their own destiny in their own way.

The situation in tropical America today, with a few exceptions, seems

to be that the republics have the form of liberty without its

substance, and the shadow of civilization without its realities. Some

of them have had over fifty revolutions in as many years. Some of them

have been in the grip of tyrants who were as heartless in exploiting

their people as was Nero in ruling Rome. The masses have received

nothing from the Government except oppression, and they live in that

hopeless, heartless ignorance so well described by a Spanish writer,

picturing conditions in Porto Rico before the American occupation. We

know that this picture was a true one. It was drawn in 1897 and won

the prize awarded by the Spanish Government at the centennial

celebration of the retirement of the English from this island. After

dilating upon the splendors and magnificence of Porto Rico, this

artist of the pen said of the masses:

"Only the laborer, the son of our fields, one of the most unfortunate

beings in the world, with the pallid face, the bare foot, the

fleshless body, the ragged clothing, and the feverish glance, strolls

indifferently with the darkness of ignorance in his eyes. In the

market he finds for food only the rotten salt fish or meat, cod fish

covered with gangrenish splotches, and Indian rice; he that harvests

the best coffee in the world, who aids in gathering into the granary

the sweetest grain in nature, and drives to pasture the beautiful

young meat animals, can not carry to his lips a single slice of meat

because the municipal exactions place it beyond his means, almost

doubling the price of infected cod fish; coffee becomes to him an

article of luxury because of its high price, and he can use only sugar

laden with molasses and impurities."

That picture applies to more than 90 per cent of the people in

tropical America to-day. It explains why these countries, which might

be made to flow with the milk and honey of a wondrous plenty, are

poverty-stricken and unable to work out a satisfactory destiny for

themselves. It shows why Cuba, Porto Rico, and Jamaica to-day are rich

in internal trade, and prosperous in foreign commerce, while other

countries are eking out a bare and scanty existence.

American commercial opportunities around the Mediterranean of the

West, in particular, and in Latin America, in general, will reach

their full when government there becomes government for the welfare of

the people rather than for the aggrandizement of the ruling class.

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