CHAPTER V

EFFECTS OF THE WAR ON THE REPUBLICS

_El país de mañana_, "the Country of Tomorrow." One may hear the proverb

any day on the lips of Spaniard or Spanish-American in whimsical

self-criticism concerning his own ways and those of his people and

country. But the word applies in another sense to the Spanish-American

republics. They are the countries of tomorrow, the lands of the future,

the lands of promise, this score of Latin-American republics; for they

are twenty in number. Owing to want of space and the comprehensive

character of our subject, I have been obliged to speak of Latin America

as a whole. This is not inappropriate, for Latin America does form a

world in itself, as all Latin-Americans feel, and indicate in their

intercourse with one another. Thus, one may quite rightly speak of Latin

America as a whole, just as one used to speak of Europe as a whole. But

this western world, which sprang from the Iberian Peninsula, is a group

of twenty republics differing from one another in situation and

character and, to some degree also, in ethnology and manner of language.

These countries extend through every habitable latitude, and most of the

republics contain within their own borders every habitable altitude.

Their products are boundless, both in abundance and in variety, and

these products might be multiplied indefinitely. Name any one of the

republics, and you are naming a symbol of wealth, of existing wealth,

and still more, of manifold future wealth.

Gast's pamphlet, summarised in the second chapter, speaks of eighty

million people "reaching upward and now setting their feet on the first

steps of their life-journey." The expression may seem a little

inappropriate and, at first sight, even a little derogatory. But it is

true: and, on reflection, no South American need feel hurt at this

description, which is in fact a justification of the past history and

present position of his country. These countries are young. They have

known the turbulence of youth. Now they are pushing their way,

vigorously enough, towards maturity and clearly developed form. The fact

was distinctly stated by a Brazilian, lecturing lately in King's

College, London, who said: "The Nineteenth Century was the age of

experiment; the Twentieth Century will be the age of fulfilment." These

countries still require interpretation to Europe. Hampered at their

first start, at the epoch of emancipation, by the exhausting and

confusing character of that long struggle, by want of political

experience, by the ignorance of the masses and, in some parts, by

ethnological difficulties, they were obliged to spend a generation or

two in clearing up the aftermath of that revolution; and in most cases

their political constitutions (although in form they are models of

constitutional law) are in their actual working only now emerging from

the stage of experiment, sometimes confused and shifting experiments,

sometimes rough-and-ready expedients. For example, in the Argentine

Confederation and also in the United States of Brazil, the relations

between the Federal Government and the Governments of the States have

not attained that regular equilibrium which prevails in the United

States, an equilibrium which was there only procured at the cost of a

tremendous civil war. In most of the republics the relations between the

Executive and the Legislature have scarcely reached a stable adjustment.

We should remember that Brazil only shook off the monarchical form of

government in 1889, and that it was some years before that revolution

was really completed. Again, in the republic best known to England, the

Argentine Confederation, the multifarious and cosmopolitan mixture of

immigration from all the Mediterranean lands has hardly yet coalesced to

form a definite national type. The origin of these states, though

superficially resembling that of the United States, was in fact

fundamentally different. For every one of the thirteen British colonies

of North America was, in a sense, grown up and a developed entity at the

moment of emancipation, since they had all possessed local parliamentary

constitutions of the British type from the beginning of their colonial

days. The initial condition of the Latin-American states was much more

formless and their early difficulties were much more complex.

Some of these lands show the character of youth in the tendency to

imitation, the adoption of French and especially of Parisian ways, not

realising how much better is a genuine native development than the

imitation of even the best models. Another symptom of youth is the

lavish and sometimes ostentatious spending of money. If the

Spanish-American has money, he spends it like a schoolboy, and he likes

a splash for his money. Another sign of youth is the rather exaggerated

national or civic _amour-propre_, a lively touchiness concerning outside

criticism--a sentiment which inclines one to be rather diffident and

apologetic even about making such remarks as these. This is a local, not

a racial characteristic in the South American, for the Spaniard is even

more proudly indifferent than the Englishman concerning what the

foreigner thinks.

These young states have hitherto acquiesced in their economic dependence

upon Europe. European immigration (at least on the east coast),

Government loans raised in Europe, provision of public utilities by

European capital, importation of almost all manufactured articles from

abroad--these have been to most South Americans the accepted conditions

of life. Thus, all these republics felt a sharp and instant shock at the

outbreak of the European war. The economic equilibrium was upset, and

the machine ceased to work. The stream of European capital suddenly

dried up: so also the stream of immigration. Indeed, the supply of

labour in the Atlantic States, especially in the River Plate, dropped

below the normal after Italy joined the Allies. Scarcity of shipping,

together with the diversion to war purposes of all European energies,

diminished the exportation from South America of all commodities not

absolutely needed by the Allies for the prosecution of the war. Imports

from Europe were restricted. Germany, which had ranked third among

outside nations trading with the continent, dropped out altogether, with

the exception of the devious and struggling efforts already noted. To

the nations of South America what had seemed the natural and regular

order of things was suddenly suspended. They were thrown upon their own

resources; they were compelled to take stock of their position and to

face an unprecedented situation. They must manage their finances without

European help; they must provide their own labour. As to things hitherto

imported from Europe, they must either provide these things themselves

or go without. The shock was severe, but it must be allowed to have been

a wholesome shock. It has stopped public over-borrowing and has put some

check on extravagance of public spending. It has favoured private thrift

and has compelled those who were perhaps over light-hearted and

materialistic to take life more seriously. The Argentine family, which

formerly provided separate motor-cars for father, mother and each son

and daughter, has now to be content with one or none. The luxurious trip

to Paris or London, with its corollary of mountainous shopping, is

abandoned, and a more modest holiday is spent at the seaside or in the

mountains at home. The daily story, flashed along the cables from

Europe, of strife, of heroism, of self-sacrifice, conduces to reflection

and grave judgment. Finally, the meaning of the struggle has been now

brought home to every South American people. Every one of them is

closely touched by the recent developments of maritime warfare. Every

one is forced to come to a decision. Whatever that decision may be,

whether it be for open war, or limited participation, or rupture of

relations, or complete neutrality, that decision is expectantly watched

by the whole world and adds its weight in the balance of the great

trial. The effect must be a graver sense of national responsibility, a

more sober consciousness of national dignity.

The economic recovery, which followed the first shock, favoured this

national consolidation and development. Imports diminished, whereas the

urgent demand of the Allies for foodstuffs and raw materials soon

produced, in most of the states, a great expansion in the value, if not

in the volume of exports. Hence a favourable trade balance and an

increase in wealth. These conditions encouraged that movement of

industrial enterprise which everywhere sought to supply, by the

exploitation of home products and by the development of home

manufactures, the needs which had been hitherto supplied by importation

from abroad. Examples, taken mostly from the A.B.C. countries, will best

illustrate this industrial movement, which has been one of the most

notable effects of the war.

Argentina felt deeply the shock of August 1914. The outbreak of war fell

like a bomb in the midst of a serious financial depression, due to

speculation, extravagance and over-borrowing. The trouble was

intensified by drought and by two bad harvests, and more recently by

widespread strikes accompanied by destructive violence. But the crisis

has compelled the Argentines to rely upon themselves, to restrict

extravagances and to push forward the industrial development of their

own resources. Thus, the diminution in the supply of English coal has

led to the search for native coal, to the use of native petroleum and

native fire-wood. Lessened timber imports mean the exploitation of

native forests. A considerable quantity of native wool is now spun and

woven in the country, and home manufacture generally is increasing. Thus

the country is richer and more industrious than ever before. It is true

that this wholesome recovery is not yet reflected in the national

finances, which are still disordered by extravagance, over-borrowing,

improvident budgets, and now by the diminished receipts from customs.

However, one very interesting event deserves special mention--the credit

or loan granted by the Argentine Government to the Allies for the

purchase of the present harvest. Since Argentine Government loans are

mostly held in Western Europe, the debt can be discharged with equal

benefit to both sides, by simply taking over the obligations of the

Argentine Government on this side of the Atlantic. Even more remarkable

is the spontaneous offer made to Great Britain by the Uruguayan

Government of a large credit for the purchase of the Uruguayan harvest.

Thus, these two debtor nations have actually become creditors to Europe,

and are proceeding to gather into national ownership a large part of the

national debt. Uruguay is taking another and most striking step towards

economic consolidation. She is preparing to avail herself of the growing

national wealth and the increased value of the Uruguayan dollar in order

to buy up enterprises owned by foreigners within her territory,

particularly the railways, which are mostly in British hands. It may

here be noted that this economic movement in Uruguay coincides with a

radical and democratic reform of the constitution, a nearer intimacy

with her Latin neighbours, an approach to the United States, and also

closer relations with Europe through the abandonment of neutrality and

the signature of unconditional treaties of arbitration with France and

Great Britain.

In Brazil, the economic recovery, the industrial development and the

general movement of national consolidation are very notable. For the

entry of Brazil into the war has added a tone of effort, of serious

determination, of grave responsibility to this combined movement. At the

outbreak of war the great diminution in the export of coffee, which had

constituted nearly half of the total exports from Brazil, hit the

country very hard. But the energetic exploitation of other resources,

together with a partial resumption of coffee exports, has made good the

national loss. The Allies wanted rubber and manganese, which Brazil can

supply. The Allies wanted foodstuffs; and Brazil has become, with almost

incredible rapidity, an exporter of meat and of vegetable foods. Coal

ceased to come from Europe. The result has been that Brazil is striving

to supply her own needs by working her southern coal seams, although at

the present time want of transport is a serious obstacle to these

efforts. Manufactures of all kinds are increasing. Brazilian cotton

particularly is now largely woven at home, and this textile industry

alone now employs about 100,000 persons. Brazil is also taking more and

more into her own hands her coastal and river navigation, and is

extending her shipping lines to foreign ports. The result of this

industrial and commercial revival has been that, notwithstanding the

decrease in the matter of coffee, Brazilian exports now outstrip their

pre-war value, and they represent a far more wholesome and more

promising distribution of the national resources, since there is no

longer an overwhelming preponderance of one commodity raised in one

state. Moreover, notwithstanding the burdens of participation in the

war, Brazil has achieved by means of careful economy and retrenchment,

a wholesome reorganisation of the Federal finances. The war has not

prevented the punctual resumption, on the promised date, of cash payment

of interest on the foreign debt. The country presents a wholesome aspect

of national efficiency and national dignity.

It may be added here that the industrial movement in Brazil has been

greatly aided by the investment of North American capital, particularly

in meat-freezing establishments. It is perhaps premature to think of

Brazil, with her vast and undeveloped pastoral, agricultural and

forestal possibilities, as an industrial country. But the possession of

large deposits of iron indicates great industrial possibilities in the

future. One difficulty, the soft character of Brazilian coal, may

possibly be overcome, whether by import of fuel or by the adaptation of

mechanical appliances.

Chile, like her neighbours, felt the first shock. Germany, the principal

purchaser of nitrates, was cut off; and the republic found by sudden

experience, how dangerous and unsound was the system whereby the

national finances depended largely on export duties levied upon one

commodity. The administration rose to the necessities of the case:

taxation was distributed upon a more scientific and normal basis, and

very soon the war situation began to pour wealth into the lap of the

republic. Nitrate, needed by the Allies for munitions, reached its

highest price and its maximum production. Copper--now perhaps the most

precious of metals--followed the same course. After-war conditions,

particularly in regard to nitrate, are impossible to foresee. But Chile

has had her lesson, not to depend on the continuance of what may be

accidental conditions and not to build on the foundation of the market

in one commodity. "The war," says a representative Chilian, "has brought

us a certain prosperity and also something that is worth more than

prosperity--common sense."

The industrial movement, which has been noted elsewhere, is being

actively pushed forward in Chile, where indeed it dates from a time long

before the war; for in Chile local manufactures are favoured by local

conditions, namely, remoteness from Europe, a sturdy population, the

possession of coal and metals, and, also, a very distinct and compact

national character and national ambition, which owe little to recent

European immigration. In 1914--just before the war--Chile possessed

nearly 8000 factories employing about 90,000 persons. It has often been

questioned whether Chile, with a population of less than four millions

and a fertile territory largely undeveloped, did wisely to encourage

this industrial movement. The war has answered that question. Chilian

coal now mainly supplies Chilian needs; and, owing to careful treatment

and selection, the results have surpassed expectation. The number of

factories is growing; and in view of freight difficulties, there is a

movement towards exporting mineral products in a semi-manufactured

state.

As to the other republics, the immediate economic effects of the war

vary with the character of exports, whether needed by the Allies for war

purposes or not. The high prices of copper, sugar, and cotton have

brought to Peru a stream of wealth, and have enabled the government to

make a very interesting experiment in the scientific taxation of excess

war-profits made by exportation. Exports are untaxed until they reach a

certain height above normal price. Any addition to that limit is taxed

in a progressive ratio.

Not only have war conditions favoured a more clearly defined national

development, both economic and political, in each of the states. These

conditions also conduce to closer and more real intercourse between the

Latin-American states. There has been on the one hand a national

consolidation in each republic: but there has also been a movement

towards international consolidation in the Latin-American world. The war

has drawn these republics closer together and has taught them to feel

their need of one another, to supply one another's needs and to

recognise a nearer community of social and political interests. The

sentiment of _Americanismo_ is more than a sentiment: it is growing into

a solid fact. Apart from the war, there are many indications of a

kindlier and more intimate intercourse. The Universities of Argentina,

Chile and Uruguay exchange professors. Brazil and Uruguay agree

concerning navigation of the Lago de Merim and the river Jaguarão; and

also arrange a seasonal migration of labourers, who work from April to

September on the São Pãolo coffee estates and pass the other half-year

working on Uruguayan estancias. The same two republics adjust a

financial matter through the foundation of a joint Brazilian-Uruguayan

agricultural college. Uruguay has declared that an injury to any South

American country is an injury to them all. Envoys from the

neighbour-republics visit Bolivia to salute the newly-elected Bolivian

President, among them an envoy from the United States. Junior embassies,

hardly less interesting in character, are the visits of boy scouts from

capital to capital. The five tropical republics which hail Bolívar as

Liberator lately clasped hands in a joint celebration of his memory, and

at the same time concluded a commercial agreement concerning trade marks

and similar matters. The study of history, now actively pursued by

competent scholars in all the republics, is a unifying as well as a

humanising power: for the student who explores or writes the early

history of his own republic necessarily treats the history of all Latin

America. The history of the struggle for South American emancipation is

a single epic. And a pleasing symbol of this historical unity is to be

seen in the portrait of the Argentine commander San Martín and of the

Venezuelan Bolívar imprinted on the postage stamps of Peru. The railroad

helps this movement. The trans-Andine railway is a link of peaceful

intercourse between Chile and Argentina. A direct mail train service has

been established between Rio and Montevideo and also between Rio and

Buenos Aires. There is a prospect that the last difficult link to

connect the railway systems of Bolivia and Argentina will soon be

supplied. This is an imperfect and rather haphazard list of symptoms of

a natural and tranquil movement towards international unity, which

accompanies and supplements a more vigorous economic and political

development within the several states. The war situation has favoured

this movement. The interruption or diminution of trade with Europe has

led these states to trade more with one another. At first, this trade

consisted largely in the interchange of accumulated European goods: but

it soon grew into something more regular and more permanent, the

interchange of home products. Argentina recently got a consignment of

coal from Chile--in itself a small matter, but a significant one.

Brazilian coal has also found its way to Buenos Aires, and trade between

these two republics is increasing.

Both Brazil and Chile are aiming at the national and internal

development of their mercantile marine and coasting trade. But the first

use which Brazil made of the sequestrated German ships was the opening

of a Brazilian steamship line to Chile. The action of Chile is still

more noticeable. A law has just passed the Chilian Congress that after

the lapse of ten years the Chilian coastwise trade shall be confined to

Chilian ships. But the Chilian President may at his discretion extend

this privilege, by way of reciprocity, to the merchant-ships of other

Latin-American countries--a clear recognition of the fact that these

republics form a community of nations in themselves. Thus the two

movements are complementary: internal development is more and more a

national affair: the development of inter-state relations is felt to be

a necessary part of the national development, and more and more to

concern all the states: it is also felt to concern these people not only

as Brazilians or Argentines or Colombians, but as Americanos. In

dwelling on this point, there is probably no danger of giving rise to

geographical confusion. A Colombian visitor, lecturing lately in King's

College, remarked that, if a British merchant is invited to do business

with Colombia, he usually replies, "We have our agent for South America

in Buenos Aires," ignoring the fact that, if a Colombian merchant by any

rare chance should have occasion to visit Buenos Aires, he would

probably pass through London on the way. The trade of all these states

with one another is naturally immensely less than with Europe or with

the United States, for the simple reason that they are all producers of

raw materials and importers of manufactured goods, whereas the European

lands, and now the United States also, are importers of raw materials

and exporters of manufactured goods. But that very circumstance

illustrates the fact that these countries are a cluster of similar

organisms. They sit back to back and face outwards: yet as each one

grows and expands, they all become conscious that they are sitting

close, shoulder to shoulder. They are beginning to touch hands and to

pass their good things, both abstract and material, from one to another.

Things are changed since the names of Brazilian and Argentine were

almost mutual bugbears and since Chile and Argentina seemed to be

chronically "spoiling for a fight." The figure of Christ, which stands

on the boundary between these two nations, symbolises a truth--a reality

all the more valuable inasmuch as it is in part intangible, a product of

the realm of ideas, not merely of the material world. The fault of these

countries and an unfortunate result of their business connexion with

Europe has been that, however prolific in rhetoric, they have been at

bottom too materialistic and have been apt to suppose that the

convenient appurtenances of civilisation--railways, telephones,

tramways, motor-cars, all provided by the foreigner--in themselves

constitute civilisation, not quite realising that the word means the

faculty of living in organised communities. It is an admirable thing if

they can find an ideal, transcending their own borders, in the sentiment

or principle or fact of Americanismo: for that word does represent a

fact. An Englishman or a Frenchman, if asked about his origin, would

never think of saying, "I am a European"; but from the lips of an

Argentine or a Colombian the words _Soy Americano_ fall quite naturally,

with the addition _Colombiano_ or _Argentino_. I have heard a South

American speak in conversation of _La América Nuestra_, "Our America,"

when he had occasion to distinguish Latin America from the United

States. The word was casually dropped for purposes of definition: yet it

is an inspiring and significant phrase, _América Nuestra_. Which of us

could now so speak of "Our Europe"?

The war has favoured this spirit of Americanism in a tangible way

through the growth of economic intercourse. On a higher and broader

plane, the same thing is happening. We saw this when Brazil severed

relations with Germany. Her announcement, communicated to her

neighbour-republics, was received with a kind of demonstration of

Latin-American solidarity. Almost every Latin-American state responded

in terms of warm appreciation and sympathy. The Argentine Government

wrote that it "appreciated thoroughly the attitude of Brazil, which was

justified by principles of universal public right, and expressed to

Brazil the most sincere sentiments of confraternity."

As the Americano looks across the Atlantic, he may congratulate himself,

not without a feeling of civic pride, that he belongs to another world,

a system of republics living at peace with one another. A century ago

Canning boasted, "I have called a New World into existence to redress

the balance of the Old." It was a prophecy rather than a boast. Now is

the time for that New World to fulfil that prophecy by realising itself,

by creating itself.

It is no inconsistency to add once more that Latin America is at the

same time drawing nearer to all the nations of the world, that its

long-standing historic connexion with Europe becomes emphasised and

extended. Who could have foretold, even a year ago, that the Republics

of Peru and of Uruguay would offer the use of their ports to the

warships of belligerent European monarchies, that Brazil, Cuba and

Panamá would be represented, as recently happened, at the Allied

Conference in Paris, or that a Brazilian squadron would be acting with

the British fleet in European waters? It can no longer be said of these

states, as was said some years ago, that they stand upon the margin of

international life. This closer participation in world affairs does not

contradict, but rather confirms and explains, what has been said

concerning the growth of _Americanismo_, the consolidation of a younger

and distinct Europe across the ocean. As these states become drawn into

the general movement of world affairs, they are compelled to define more

clearly their own position in a world of their own. One may find some

analogy in the British Empire, whose members, as they grow into nations

and become severally involved in relations with all other peoples, find

it more necessary to reaffirm and to define their relations with one

another.

But in speaking of Latin America, one has to draw a line, or rather a

note of interrogation, round Mexico. The history of that unfortunate

country has been profoundly affected by her geographical position

within the North American continent. The path which she has followed in

recent years--a path not entirely of her own choosing--seems rather to

lead outside the ring-fence of Latin America. It is an interesting

speculation whether that path may not eventually lead her into another

fold, the fold whose shepherd resides in the White House at Washington,

whether that shepherd desires to undertake the responsibility or not.

The present position is an anomalous one. The political frontier of the

United States is the Rio Grande, but the geographical frontier of North

America is the Isthmus of Panamá, and that geographical frontier has

been occupied--merely as an outpost so far---by the United States. The

Republics of Nicaragua and of Panamá have been drawn under American

tutelage. The question arises whether after the great war the United

States may not be led on by the logic of events so to extend the

struggle on behalf of democracy against autocracy that the frontier,

dividing Latin America from the region under Anglo-Saxon control, shall

be the geographical boundary between the two continents. President

Wilson indeed has assured the Mexicans, with obvious conviction and

sincerity, that no aggression is intended against their territory, and

that he desires a common guarantee of all the American republics to

protect the "political independence and territorial integrity" of all.

But no statesman can shape the future or absolutely bind his successors.

It may be pointed out that there are various degrees and methods of

control, some of which may be found not quite incompatible with the

spirit of President Wilson's assurances. The precedents of Cuba, Panamá

and Nicaragua are suggestive.

This leads us to our last topic. We have discussed _Americanismo_, the

sentiment or system which aims at uniting the Latin-American republics.

What about Pan-Americanism, the sentiment or system which aims at

uniting all the American republics?

South America and the War · 第 5 / 6 章