initial commit of ebook 38793HEADmain

13 files changed, 13394 insertions, 0 deletions

diff --git a/.gitattributes b/.gitattributes
new file mode 100644
index 0000000..6833f05
--- /dev/null
+++ b/.gitattributes
@@ -0,0 +1,3 @@
+* text=auto
+*.txt text
+*.md text
diff --git a/38793-0.txt b/38793-0.txt
new file mode 100644
index 0000000..2988f37
--- /dev/null
+++ b/38793-0.txt
@@ -0,0 +1,3314 @@
+Project Gutenberg's South America and the War, by F. A. Kirkpatrick
+
+This eBook is for the use of anyone anywhere at no cost and with
+almost no restrictions whatsoever.  You may copy it, give it away or
+re-use it under the terms of the Project Gutenberg License included
+with this eBook or online at www.gutenberg.org
+
+
+Title: South America and the War
+
+Author: F. A. Kirkpatrick
+
+Release Date: February 9, 2012 [EBook #38793]
+
+Language: English
+
+Character set encoding: UTF-8
+
+*** START OF THIS PROJECT GUTENBERG EBOOK SOUTH AMERICA AND THE WAR ***
+
+
+
+
+Produced by Adrian Mastronardi, JoAnn Greenwood and the
+Online Distributed Proofreading Team at https://www.pgdp.net
+(This file was produced from images generously made
+available by The Internet Archive/American Libraries.)
+
+
+
+
+
+
+
+
+
+    SOUTH AMERICA AND
+    THE WAR
+
+    BEING THE SUBSTANCE OF
+    A COURSE OF LECTURES DELIVERED IN
+    THE UNIVERSITY OF LONDON, KING'S COLLEGE
+    UNDER THE TOOKE TRUST
+    IN THE LENT TERM
+    1918
+
+
+    BY
+
+    F. A. KIRKPATRICK, M.A.
+
+
+    CAMBRIDGE
+    AT THE UNIVERSITY PRESS
+    1918
+
+
+
+
+PREFACE
+
+
+This little book contains the substance, revised and adapted for
+publication, of lectures given in the Lent Term, 1918, at King's
+College, London, under the Tooke Trust for providing lectures on
+economic subjects. The course of lectures was in the first instance an
+endeavour to perform a war-service by drawing attention to the activity
+of the Germans in Latin America, and particularly to the ingenuity and
+tenacity of their efforts to hold their economic ground during the war,
+with a view to extending it after the conclusion of peace. A second
+object was to examine more generally the bearings of the war on those
+countries, and the influence of the present crisis on their development
+and status in the world.
+
+These two topics, though closely connected, are distinct. The first has
+an immediate and present importance, the second has a wider historic
+significance. The logical connexion between them may not seem obvious.
+Yet the first enquiry, concerning German war-efforts in Latin America,
+naturally and inevitably led to the second, concerning the larger issues
+involved. The former topic is treated in Chapters I, II and III, the
+latter in Chapters IV, V and VI. The term "South America" is used in the
+title of this book as a matter of customary convenience; but it is not
+meant to exclude the Antillean Republics or the Latin-American States
+stretching to the North-west of the Isthmus of Panamá.
+
+Clearly, an essay of this kind, if it was to be of any use, had to be
+produced quickly. It was impossible to wait in hopes of achieving some
+kind of completeness. The immediate and urgent importance of the subject
+has been signally emphasised by the despatch of a special British
+Diplomatic Mission to the Latin-American Republics, and by the King's
+message addressed to British subjects in Latin America, in order to
+inculcate the spirit of collective effort.
+
+In the course of this essay frequent mention is made of the struggle for
+emancipation, of the part which Englishmen took in that struggle and of
+the great services rendered to the cause of independence by the action
+of British statesmen, notably Canning. In a book which aims mainly at a
+review of present conditions, it is impossible to enlarge upon these
+topics, since their adequate treatment would involve some consideration
+of political action on the European Continent and in the United States.
+But since this passage of past history bears closely on the present
+topic, it may be here mentioned that a brief account of these matters is
+given in the _Cambridge Modern History_, vol. X, chap. IX.
+
+The subject of German "peaceful penetration," which is incidentally
+illustrated but not expounded in these chapters, may be studied in M.
+Hauser's book entitled (in its English version) _Germany's Economic Grip
+upon the World_; also in _The Bloodless War_, translated from the
+Italian of Signor Ezio Gray. The character of that penetration, with its
+admirable as well as its odious features, is briefly and clearly set
+forth in a recent Report (Cd 9059) presented to the Board of Trade on
+enemy interests in British trade.
+
+I desire to express my indebtedness to _Le Brésil_, a weekly review of
+Latin-American affairs published in Paris; to _The Times_ newspaper,
+particularly the monthly _Trade Supplement_ and the South American
+number (Part 183) of _The Times History of the War_; to the weekly
+_South American Journal_; and to the monthly _British and Latin-American
+Trade Gazette_. The quotation on pages 40-41 is taken from _The Times_;
+and various other passages, not always verbally reproduced, are derived
+from the same source.
+
+It is impossible to thank by name all those who have placed at my
+disposal their knowledge of Latin-American countries. But I owe an
+especial debt of gratitude to the Master of Peterhouse for his aid and
+advice in the production of this book.
+
+The original matter has been considerably rearranged for purposes of
+publication. But wherever convenience permitted, the lecture form has
+been retained in order to indicate that the book owes its inception to
+King's College, London.
+
+                                                    F. A. K.
+
+    _August 15, 1918._
+
+
+
+
+CONTENTS
+
+
+                                                 PAGE
+
+    PREFACE                                         V
+
+    INTRODUCTION--GENERAL CONDITIONS IN
+    LATIN AMERICA                                   1
+
+    CHAP.
+
+    I.   POLITICAL CURRENTS AND FORCES             14
+
+    II.  THE GERMAN OUTLOOK ON LATIN AMERICA       25
+
+    III. THE ECONOMIC WAR AND ITS PROPAGANDA       34
+
+    IV.  THE RECOGNITION OF LATIN AMERICA          45
+
+    V.   EFFECTS OF THE WAR ON THE REPUBLICS       53
+
+    VI.  PAN-AMERICANISM                           66
+
+         LATIN-AMERICAN REPUBLICS                  78
+
+     The map at the end of the book shows the former Spanish and
+     Portuguese possessions in America, and also the existing
+     Latin-American Republics.
+
+
+
+
+SOUTH AMERICA AND THE WAR
+
+
+
+
+INTRODUCTION
+
+GENERAL CONDITIONS IN LATIN AMERICA
+
+
+The New World or Western Hemisphere consists of two continents. The
+greater part of the northern continent is occupied by two great Powers,
+which may be described as mainly Anglo-Saxon in origin and character.
+One of them, the Canadian Federation, is a monarchy, covering the
+northern part of the continent. The other, a republic, the United
+States, occupies the middle part. To the south and south-east of these
+two extensive and powerful countries stretch the twenty republics,
+mainly Iberian in origin and character, which constitute Latin America.
+These lands cover an area which is about twice the size of Europe or
+three times the size of the United States. Their population approaches
+eighty millions. Latin America, extending as it does through every
+habitable latitude from the north temperate zone to the Antarctic seas,
+possesses every climate and every variety of soil, and accordingly
+yields, or can be made to yield, all the vegetable and animal products
+of the whole world. Moreover, most of the republics also severally
+contain territory of every habitable altitude, so that a man can change
+his climate from torrid to temperate and from temperate to frigid simply
+by walking up-hill. Thus, equatorial lands can produce within the range
+of a few miles all the products of every zone. Most of the republics
+also furnish an abundance and variety of mineral products. The name
+Costa Rica, or Coast of Riches, which was given by the early discoverers
+to a small strip of the mainland, was prophetic of all its shores. And
+the fable of El Dorado, concerning its interior wealth, has proved to be
+not fabulous but only allegorical.
+
+
+_Geographical Grouping_
+
+The geographical distribution of these republics should be indicated.
+Three of them are island states of the Caribbean Sea. Cuba is the
+largest of the Antilles; Santo Domingo and Haiti divide between them the
+next largest. The rich tropical fertility of these West Indian isles has
+been a proverb for centuries and need not here be emphasised. Upon the
+mainland, the vast territory of Mexico and the five Central-American
+republics may be grouped together, forming as they do a kind of
+sub-continent, a narrowed continuation of North America. Through this
+region a broad mountain-mass curves from north-west to south-east. This
+configuration provides the characteristics and the varied products of
+every zone upon the same parallel of latitude: the torrid coastal
+strips, bordering both oceans; the beautiful, wholesome and productive
+region of the central plateau and long upland valleys; and finally the
+chilly inhospitable regions of the mountain heights. The long sweep of
+the country south-eastwards through the tropics also provides a wide
+range of character, from the cattle-rearing plains of Northern Mexico to
+the coffee and banana plantations of Costa Rica. Nowhere are lands of
+richer possibilities to be found.
+
+The small newly-created Republic of Panamá completes this northern
+system of Latin-American countries. Thus, before coming to South America
+at all, we count ten Latin-American states, three in the Antilles, seven
+upon the mainland.
+
+The other ten republics lie within the continent of South America. That
+continent is shaped by nature in lines of a vast and imposing
+simplicity, so that it is possible to sketch its main features in a few
+words. It is divided broadly into mountain, forest and plain--the
+immense chain of the Andes, the vast Amazonian forests, the
+wide-stretching plains of the Pampa, and the colossal water system of
+the three rivers, Orinoco, Amazon, La Plata. The dominating element is
+the great backbone, the cordillera of the Andes. From the southern
+islands of Tierra del Fuego this cordillera stretches for 4000 miles
+along the Pacific coast to the northern peninsulas of the Spanish Main,
+and thence throws out a great eastward curve along the southern shore
+of the Caribbean Sea. This continuous mountain-wall, clinging closely to
+the Pacific coast, determines the whole character of the continent. In
+the tropical zone, the trade winds, blowing continually from the
+Atlantic, sweep across South America until they strike this towering
+mountain barrier. Then they shed their moisture on its eastern slopes,
+which give birth to the multitudinous upper waters of the Orinoco, the
+Amazon and the western affluents of the River Plate. The Amazon rather
+resembles a slowly moving inland sea, its twelve principal tributaries
+all surpassing the measure of European rivers. The River Plate pours
+into the ocean more water than all the rivers of Europe put together.
+The Orinoco, shorter but not less voluminous, drains a vast area with
+its 400 tributaries.
+
+But the Andes, whose forest-clad eastern slopes pour these immeasurable
+water-floods across the whole continent to the Atlantic, oppose to the
+Pacific, in the southern tropics, a bare dry wall of rock and yellow
+sand. In the north, _the garrua_, the winter mist of equatorial Peru,
+supplies moisture for cultivation. South of this region, the rainless
+desert stretches, a ribbon-like strip, between the mountains and the
+sea. Here, except in some transverse river-valleys, not a blade of grass
+can grow for over a thousand miles. Yet it is this very barrenness which
+has produced the materials of fertility for other lands in the form of
+guano and nitrate deposits. Far to the south, in the "roaring forties,"
+these conditions are reversed. Here, moisture-laden winds blow
+continually and stormily from the Pacific, feeding the dense and soaking
+forests of southern Chile. In the same latitudes, to the east of the
+Andes the terraced plains of Patagonia supply sheep pasture, thinly
+nourished by slight rainfall, although, over so vast an extent, these
+flocks amount to many millions. In the more temperate regions, between
+these zones of climatic extremes, more normal conditions prevail. On one
+side of the Andes are the rich valleys of Central Chile, on the other
+side the wide plains of the Argentine Pampa, formerly given over to
+pasture, now producing wheat, maize, flax, barley and oats as well as
+meat, hides and wool.
+
+South America has been called the fertile continent. Considering that
+most of the land lies within the tropics, it might be called the
+habitable continent--habitable in comfort and health by white men. In
+form, the continent may be roughly compared with Africa, but the
+comparison is in favour of South America. The traveller who has sailed
+along the east or west coast of tropical Africa meets a contrast on
+crossing the Atlantic. Along the Brazilian coast, he finds a succession
+of busy ports, crowded with the shipping of all nations--flourishing and
+growing cities, inhabited largely by Europeans living the normal life of
+Europe. The perennial trade winds, blowing from the sea, bring coolness
+and health; and, almost everywhere, the worker in the ports may make his
+home upon neighbouring hills. On the west coast, tropical conditions are
+even more striking. Here, a soft south wind blows continually from
+cooler airs, and the Antarctic current flowing northwards refreshes all
+the coast. At Lima, twelve degrees from the Line, one may wear European
+dress at midsummer and, descending a few miles to the coast, may plunge
+into a sea which is almost too cold. Moreover, in these regions the
+Andine valleys offer every climate, and a short journey from the coast
+leads one to uplands resembling southern Europe. Higher yet, beyond the
+first or western chain of the Andes stretches the vast and lofty plateau
+enclosed between the double or triple ranges of volcanic mountains. The
+western part of Bolivia, though tropical in situation, is a temperate
+land, lying as it does at a height of above 12,000 feet. This broad
+Bolivian plateau narrows northwards through Peru and finally contracts
+into the Ecuadorian "avenue of volcanoes." Here, in the very central
+torrid zone, a double line of towering peaks shoot their fires far above
+plains and slopes of perpetual snow. Thence the cordillera opens out
+northwards into the broad triple range of Colombia, which encloses wide
+river valleys of extraordinary richness and fertile savannahs, enjoying
+perpetual spring.
+
+Lastly, it should be noted that some of the best part of South America
+begins where Africa ends. Buenos Aires, Montevideo, Capetown and Sydney
+lie approximately in the same latitude, about 34° or 35° south. But some
+of the best parts of Chile and Argentina stretch far to the south of
+this latitude. Alone of the southern continents, South America thrusts
+itself far through the cool regions of the temperate zone.
+
+Hitherto, white settlement in South America has, in the main, followed
+the easiest lines, along the coast, upon the southern plains and up the
+river courses. Of the three great rivers, the Orinoco is the least
+developed, partly owing to natural difficulties--namely, an uneven
+shifting bed and great differences of water level--partly owing to
+artificial and political conditions; but in the wet season its waters
+admit navigation up the main stream and its principal western affluent,
+the Apure, almost to the foothills of the Colombian Andes; and the trade
+winds, blowing upstream, carry sailing craft half across the continent.
+Upon the Amazon system, Manaos, one of the great ports of Brazil, is 900
+miles from the sea: Iquitos, 2300 miles from salt water, is accessible
+to the smaller class of ocean steamers. Upon the Paraná, 1000 miles from
+the ocean, stands the port of Asunción, capital of Paraguay, accessible
+to ocean ships of shallow draught and to large river steamers:
+stern-wheel steamers can mount the Paraguay River 1000 miles farther to
+the remote Brazilian port of Cuyabá.
+
+The navigation of both these river systems, the Amazon and the River
+Plate, is limited or rather interrupted by the fourth great feature of
+the continent, the Brazilian plateau. The Paraná and its affluents
+plunge from this plateau to the southern plain in tremendous waterfalls.
+The southern tributaries of the Amazon pierce their way down into the
+Amazonian valley along defiles, cataracts and rapids sometimes extending
+scores of miles. The Amazonian affluents are mostly navigable from the
+main river to the foot of these cascades. Above the cascades, there
+stretch fresh reaches of navigable water, providing many paths into the
+far interior. Similar conditions are found on the two branches of the
+River Tocantins and on other Brazilian rivers, such as the São Francisco
+and the Paranahyba. With the future growth of population, the
+construction of lateral railways and, later, perhaps the partial
+canalisation of rivers, there is no limit to the possibilities of
+internal water communication. The wealth of water power which awaits
+application is obvious. As to possibilities of water storage and
+irrigation, it suffices to say that on the Lower Orinoco and also on the
+Lower Amazon the difference of water level between wet and dry seasons
+is at least fifty feet, and most of the affluents rise and fall
+proportionately.
+
+The great Brazilian plateau, which has just been mentioned, further
+justifies the description of South America as the fertile continent--the
+region of habitable tropics. The vast scale of this plateau and its
+relation to the River Plate system justify its description here as a
+continental feature rather than a purely national feature, although it
+is mainly a national possession of Brazil. From the north-east shoulder
+of the Brazilian coast, this varied plateau, seamed by many clefts,
+stretches southwards and south-westward in a vast semi-circular sweep
+dividing the two river-systems. The Paraná and its affluents plunge from
+this plateau towards the south and west. Northwards and eastwards it
+sends a multitude of streams to the Amazon and the Atlantic. These
+Brazilian uplands naturally vary in character and productiveness, but
+they are in great part suitable for white habitation and especially for
+the grazing of cattle. There is no winter; there is little of excessive
+or torrid heat; the grass grows all the year round; and in the
+neighbourhood of some rivers, the grasslands are annually renovated by
+seasonable and shallow floods.
+
+
+_Political Distribution_
+
+Among the republics, the United States of Brazil stand in a class apart,
+by virtue of the Portuguese origin and character of that country, its
+very distinct history and its immense size, occupying, as it does, more
+than half the continent. As to the republics of Spanish origin, no
+single classification suffices. The most obvious division is that which
+groups them into tropical and temperate countries. The five republics of
+Venezuela, Colombia, Ecuador, Peru and Bolivia, which lie wholly within
+the tropics, form a group of states which were closely connected in the
+early history of emancipation and which are still marked by a general
+though not very close similarity in respect of geography and
+ethnological conditions. Chile and Argentina lie mainly in the
+temperate zone; Uruguay wholly so; and these, with the southern parts of
+Brazil, are the regions most obviously suitable for white settlement.
+These three southern republics may also be described as the most
+European part of the continent, whereas the five tropical republics have
+a large admixture of indigenous, and, in parts, also of negro, blood.
+
+The small sub-tropical republic of Paraguay, secluded in the interior of
+the continent, does not quite fall into either group, but belongs to the
+system of River Plate countries. For the three Atlantic republics of the
+southern hemisphere, Argentina, Uruguay, Paraguay, form a distinct group
+or sub-continent known as the "River Plate" and thus suggest a second
+classification into the Rio-Platense and the Andine states. Lastly, a
+glance at the map shows that Colombia and Venezuela differ from all
+their southern neighbours in that they border upon the Caribbean Sea,
+that Mediterranean Sea of the New World which stretches between the two
+continents. Thus these two republics complete the circle of that
+Mediterranean system of lands--the Antilles, Mexico, Central America,
+Panamá--in which the United States are the dominant Power and in which
+Great Britain, France and Holland are also members--one may perhaps say
+subsidiary members. Thus each of these republics of the Spanish Main has
+a dual character. They are on the one hand South American continental
+states; but their coasts also face the coasts of the United States, and
+their borders, to east and west, touch lands which are not purely
+Latin-American in character. Venezuela, both historically and actually,
+faces both ways. On the one hand she is the country of the Orinoco, of a
+vast continental interior: on the other hand she belongs also to the
+Antillean system: her eastern neighbour is British Guiana, and her
+territory almost locks fingers with the British island of Trinidad,
+which is in some sort the distributing commercial centre for all the
+Spanish Main. Thus Venezuela completes that long Antillean chain which
+curves from Florida to the Spanish Main, a chain whereof several links
+are in the possession of the United States. This dual character stands
+out in the early history of the country. For, during most of the
+colonial period, Venezuela was the only part of South America not
+attached to the Viceroyalty of Lima. Eastern Venezuela depended on the
+Audiencia of Santo Domingo and was thus connected with the Antilles and
+with the Viceroyalty of Mexico, that is to say with North America. Then
+followed a period of dependence on the Viceroyalty of Santa Fé de
+Bogotá, until finally Venezuela was erected into a separate
+Captaincy-general.
+
+In the Republic of Colombia the dual position has been forced into
+prominence by recent events. On the one hand Colombia is a Pacific
+state, an Andine and continental country; yet her chief ports and
+arteries of communication lead northwards; and, until fifteen years ago,
+she bestrode the Isthmus of Panamá. In 1903 that Isthmus passed under
+the control of the United States; and Colombia, which formerly included
+the province of Panamá, now practically has the United States for her
+nearest neighbour.
+
+
+_Origin of Divisions_
+
+The connexion of these states with Europe dates from the first voyage of
+Columbus across the Atlantic and from Cabral's voyage to Brazil. The
+fabric of South America, as it stands today, was constructed in the main
+during the marvellous half-century from 1492 to 1542. During that time
+almost all the existing states took shape, and most of the present
+capitals were founded. That work is chiefly connected with five great
+names, Columbus, Balboa, Cortes, Magellan, Pizarro. Columbus and his
+companions or immediate successors founded the Spanish empire on the
+Antilles and the Spanish Main. Balboa sighted the South Sea, crossed the
+Isthmus, and claimed that ocean and all its shores for the Crown of
+Castile. Cortes established the empire of New Spain in North America.
+Pizarro, starting southwards from Panamá, discovered the empire of the
+Incas, shattered their power and set in its place a Spanish Viceroyalty.
+
+The political divisions marked out at the conquest, which still subsist
+in the main, were determined by the course of exploration and conquest.
+When a separate condottiere hit upon a convenient site for a port and
+founded a city either upon the sea-board or in some inland situation
+accessible from the port, his work usually came to be recognised by the
+creation of a separate government. These conquistadores showed judgment
+and capacity in their choice of sites and in their marches inland, which
+naturally followed the most convenient lines of communication. In this
+way it came about that the political divisions in the Spanish empire
+were mainly determined by natural economic causes, acting through the
+rather haphazard experiments of practical men rather than through any
+deliberate theory. These natural economic conditions are permanent in
+character: they still persist, and they account in great part for the
+continuance of the chief political divisions after the achievement of
+independence and for the failure of ambitious schemes and aspirations
+after union or federation. Thus the separate "kingdoms" and
+"captaincies-general" of imperial Spain grew into states and are now
+growing into nations. An illustration may be found in the Australian
+colonies. In Australia, separate existence was at first an economic
+necessity, demanded by the early colonists, owing to the distinct paths
+of settlement and the distance between ports. Union, achieved later by
+means of federation, was the work of artificial efforts of statesmanship
+acting patiently through many difficulties.
+
+The "Indies" were dependencies or possessions of Spain down to the
+nineteenth century. Viceroys, captains-general and governors were sent
+out from the Peninsula to rule in the capitals: corregidores held office
+in the smaller towns[1]: audiencias, at once tribunals and councils,
+were established in important centres. The course of trade was regulated
+and was directed solely to the Peninsula. But the strength and the basis
+of the fabric lay in the municipalities, which, although the
+councillors' seats were purchased from the Crown or inherited from the
+original purchasers, nevertheless offered some kind of public career to
+the inhabitants and afforded the means of local public vitality.
+
+
+_Emancipation_
+
+When Napoleon stretched out his hand upon the Spanish royal family and
+upon the Spanish kingdom, these municipalities everywhere became the
+channels of patriotic protest and resistance to French pretensions.
+Owing to the collapse of the monarchy, the unsympathetic and even
+hostile attitude of successive popular authorities in Spain, and the
+action of certain resolute leaders guiding the natural development of
+local activities, these movements in America soon shaped towards
+separation. In every capital the municipality formed the nucleus of a
+junta or convention, which first assumed autonomy and then was forced by
+the logic of events, and particularly by Spanish attempts at repression,
+to claim republican independence. The resultant struggle was shared in
+common by all. Buenos Aires, having worked out for herself a fairly
+tranquil and facile revolution, sent troops under San Martín to aid
+Chile and to invade the royalist strongholds of Peru. Bolívar, the
+Caraqueño, liberator of the Spanish Main and of Quito, sent his soldiers
+southwards through Peru. Finally, Venezuelans and Argentines, from
+opposite ends of the continent, stood side by side in that battle on the
+Andine heights of Ayacucho which ended the Spanish Viceroyalty of Peru
+and the Spanish dominion on the continent. The peoples of South America,
+through all subsequent divisions, have never quite forgotten that in
+those days they made common cause and united in a combined effort to lay
+the foundations of what might be a common destiny.
+
+The emancipation of Mexico was a separate movement, which followed a
+rather different course owing to the Indian origin of most of the
+population. The issue was confused and hindered by early outbreaks,
+which were in great part Indian insurrections and class conflicts not
+directed to any clear aim and tainted by brigandage. An attempt was made
+to cut the tangle of conflicting interests by the establishment of an
+independent Mexican monarchy. In 1823 this was overthrown by a military
+revolt, which started the Mexican republic on its stormy career. The
+movement of separation from Spain inevitably embraced also the
+Captaincy-general of Guatemala, which chose separation from Mexico, and
+assumed the name of Central America--an artificial political term rather
+than a geographical description. Its five provinces eventually separated
+into the five republics of Central America.
+
+Events in Brazil shaped themselves differently. Upon the French invasion
+of Portugal in 1807-8, the Portuguese royal family migrated to Brazil
+and made Rio for a time the capital of the Portuguese dominions. When
+King John VI returned to Lisbon in 1821, he left as Regent of Brazil his
+son Dom Pedro, who, a few months later, supported by Brazilian opinion,
+threw off allegiance to his father and declared himself an independent
+sovereign. Thus was established, or rather continued, that Brazilian
+monarchy which subsisted down to 1889 and which secured to that country
+tranquillity and a continuous though rather sleepy progress during the
+stormy period through which Spanish America passed after the achievement
+of independence.
+
+For the long struggle had been mainly destructive. It had not only swept
+away Spanish authority, but had blurred and in some parts had erased all
+authority, all stability and order, had confused or obliterated whatever
+had existed of political experience or tradition, and had left the
+ignorant masses a prey to theorists and adventurers. The result was
+that, for at least a generation after the achievement of independence,
+most of the Spanish-American states were agitated by a turmoil of
+multitudinous constitutional experiments, confused conflict and
+destructive civil war, alternating with periods of rigorous and often
+tyrannical personal despotism. These movements have been perhaps
+unfairly judged in Europe. The young communities of Latin America,
+wanting in political experience and torn by a long and unavoidable
+struggle, were engaged in sweeping up the débris of their great
+revolution.
+
+The Republic of Chile in great part escaped that turmoil through the
+establishment, after a brief period of conflict, of a fairly stable
+aristocratic oligarchy of landed proprietors. Her three "revolutions"
+have been landmarks rather than interruptions in her historical
+development; for they were brief, decisive and conducive to a clearer
+constitutional definition. Argentina, after the fall of the Dictator
+Rosas in 1852, began to feel her way towards union and order, and may be
+said to have achieved that end with the general acceptance of her
+completed Federal Constitution in 1880. In the tropical republics
+constitutional agreement was rendered more difficult by the mixture of
+races, by geographical and climatic obstacles and by a comparative
+remoteness from European influences. And in the Caribbean lands our own
+generation has seen Presidential seats occupied by despots of the old
+type, usually men of imperious and resolute character, dauntless courage
+and unscrupulous indifference respecting means and methods, men
+sometimes risen from the lowest station through ruthless force and
+cunning. Indeed, Mexico, after a period of remarkable economic
+development under the long autocracy of Porfirio Diaz, relapsed, upon
+his fall in 1910-11, into the condition of a century ago.
+
+Yet it may be generally said that the decade following 1870 was the
+beginning of a new era for the Latin-American republics. The extension
+of steam navigation, the building of railways, machinery applied to
+agriculture, the influx of immigrants from Southern Europe and of
+capital from Northern Europe, the growing demand in Europe for
+foodstuffs and raw materials--all these things favoured, particularly in
+the south temperate zone, a rapid and very remarkable economic
+development which accompanied and aided a consolidation and closer
+cohesion of the social and political fabric.
+
+The outstanding fact in the recent history of Latin America and in her
+present relations to the war is this economic development, this great
+creation of new wealth during the past generation. It has been described
+in many modern books upon the various republics, and can be studied in
+Consular Reports, which read like romances. The Pampa has become one of
+the chief granaries of the world; and Buenos Aires, the greatest city of
+the southern hemisphere, is the centre of a railway system almost equal
+in extent to that of the United Kingdom. Chile has been enriched by
+nitrate and copper, Brazil by coffee and rubber. The High Andes have
+become once more a treasure-house of mineral wealth: tropical hills,
+valleys and coastal plains yield the riches of their vegetable products.
+
+The date assigned above as the beginning of this great economic increase
+is the date when the modern German Empire came into complete being. The
+recent growth of Latin America coincides with the birth and growth of
+the German industrial system. The organised energy, the patient
+assiduity, the expanding productiveness of Germany found a great
+opportunity in meeting the new needs of these rapidly growing countries.
+Germans won a remarkable position in those lands and had marked out for
+themselves a yet more ambitious future.
+
+During the same period the United States, having decisively consolidated
+the Union, has taken its place among the great Powers of the world. That
+republic has also altered its economic character: for whereas previously
+the inhabitants had been principally engaged in the internal development
+of a vast territory and had been exporters mainly of foodstuffs and raw
+materials, the growth of population has turned them into a commercial
+people exporting manufactured goods. This dual development, political
+and economic, has profoundly affected the relations of the United States
+with Latin America.
+
+Meantime the long-standing and intimate connexion between these lands
+and the maritime countries of Western Europe has followed a natural and
+uninterrupted course suffering no signal change except that, quickened
+by a newly-awakened and more active interest on the part of Europe, it
+has become closer, more sympathetic and more firmly based upon mutual
+respect and understanding.
+
+It is the object of the following pages to examine these matters with
+reference to the Great War, and also to consider generally the bearings
+of the war upon the development of the Latin-American countries.
+
+FOOTNOTE:
+
+[1] The reform of 1780-84, which established a quasi-French system of
+intendentes and subdelegados, need not here be treated.
+
+
+
+
+CHAPTER I
+
+POLITICAL CURRENTS AND FORCES
+
+
+In estimating the bearings of the great war upon these countries, it is
+necessary to review certain political forces and currents of public
+thought, which the Germans have attempted to divert to diplomatic or
+bellicose ends. Since these influences date in part from the era of
+independence or even from an earlier date, clearness of vision demands
+some historical retrospect. When, upon the achievement of independence,
+schemes of Latin-American or of South American union were found
+impracticable, it was inevitable that frontier disputes and national
+rivalries should lead to tension and sometimes to wars between states.
+When it is remembered that every one of the ten South American republics
+was divided from several neighbours by frontiers partly traversing
+half-explored and imperfectly mapped regions, it is perhaps surprising
+that such questions have been on the whole so amicably settled, and that
+those which are still pending do not appear to be menacing or dangerous.
+Owing to the paucity of population on the ill-defined and remote
+interior frontiers, many of these questions did not become urgent until
+the latter part of the nineteenth century, when the increasing
+seriousness of political interests, the steadying influences of material
+growth, and the pressure of outside opinion favoured peaceful
+settlement, usually by means of arbitration. It would be possible to
+compile a formidable list of such disputes. Most of them are questions
+concerning historical and geographical delimitation, of great local
+interest, but hardly of world-wide significance, although for a time the
+world was alarmed lest the frontier dispute of Argentina and Chile
+should excite a conflict between the two peoples engaged in the
+development of the south temperate zone, the natural seat of an
+important trans-Atlantic European civilisation.
+
+A good example of the character of such frontier questions, of their
+mode of settlement and of their possible exploitation for Teutonic
+purposes is to be found in the long-protracted dispute concerning the
+boundary between Venezuela and British Guiana--a dispute which only
+became acute when gold was discovered in the region under debate. In
+deference to external influence, the whole question was submitted to
+arbitration, and was decided according to historical evidence concerning
+the early course of settlement. This example is of further interest as
+illustrating the German method of seizing opportunities. For, today,
+German propaganda seeks to revive the bitterness of this episode, and
+cultivates the favour of Venezuela by holding out the prospect of the
+enlargement and enrichment of that republic through the absorption of
+British Guiana and Northern Brazil; just as the neighbouring Republic of
+Colombia is assured that German victory and the humiliation of the
+United States will mean the return of Panamá to Colombia. It would be
+unwise to dismiss such persuasive lures as too fantastic even for the
+tropical atmosphere of the Spanish Main. Wherever opportunities occur,
+similar efforts are made to turn to account national jealousies,
+resentments and ambitions, and particularly to exacerbate the relations
+between Brazil and Argentina, between Peru and Chile, between Mexico and
+the United States.
+
+The rivalry between the Portuguese and Spanish elements in South America
+dates from early colonial times; and, as often happens in disputes
+between members of the same family, has been perhaps more warmly felt
+than the historic rivalry between Anglo-Saxon and Latin in America. The
+feeling was kept alive after emancipation by a dispute concerning the
+possession of the Banda Oriental (now the Uruguayan Republic), which
+geographically belonged rather to the Portuguese or Brazilian system,
+historically to the Spanish or Argentine system. During the eighteenth
+century Spaniards and Portuguese had disputed its dominion in a series
+of rival settlements, of wars and treaties, which finally left Spain in
+possession. The struggle for emancipation reopened the question. For
+three years (1825-28) Argentina and Brazil fought for possession. The
+quarrel was adjusted, through the mediation of British diplomacy, by the
+recognition of the Banda Oriental as a sovereign republic. Twenty years
+later, Rosas, dictator of Buenos Aires, attempted to reverse this
+decision by force of arms. His fall, partly brought about by Brazilian
+intervention, settled the question. But it has left traces upon the
+vivacious local sentiment of those young countries.
+
+Again, the war which Chile waged in 1879-83 against Bolivia and Peru
+ended in the occupation by Chile of Western Bolivia and also of the two
+southern provinces of Peru. The ultimate possession of these two
+provinces is still under discussion. Meantime, they remain in Chilian
+hands; and, although a friendlier atmosphere now prevails, diplomatic
+relations have never been resumed between Peru and Chile.
+
+In these inter-state questions Germany seeks her opportunity for fishing
+in troubled waters. German diplomacy and propaganda have striven to
+reopen these old sores and to impede Latin-American consolidation by
+setting state against state, and by fomenting or reviving latent
+ambitions of hegemony or aggrandisement. Those who favour Germany are to
+win great territorial rewards, at the expense of their misguided
+neighbours, upon the achievement of that German victory which is
+represented as certain. Particular efforts have been made to embroil
+Argentina with her neighbours; a prominent feature of this programme is
+the dismemberment of Brazil.
+
+But the most important of these political movements and the one which
+seemed to offer most promise to German schemes, is the long dispute
+between Mexico and her northern neighbour. This is a part of that
+process which since the beginning of the nineteenth century has
+radically altered the map of the Caribbean lands and has shifted the
+whole weight of political influence in that region. The chief effort of
+Germany is to exploit the historic rivalry between Anglo-Saxon America
+and Latin America, and to separate north from south by reviving the
+smart of past incidents and by stirring up apprehensions as to the
+future.
+
+Here, again, it is necessary to glance back and summarise the chief
+actual events of that history[2]. When Latin-American independence was
+achieved, between 1820 and 1824, the United States had already become
+the dominant power on the Mexican Gulf by the acquisition of Louisiana
+and Florida, and in 1826 she exercised the privileges of that position
+by prohibiting Mexican and Colombian designs for the emancipation of
+Cuba. In 1845 Texas, which nine years before had seceded from Mexico,
+was admitted to the Union, and in 1846-48 half the territory of the
+Mexican Republic was transferred to the United States by a process of
+conquest confirmed by purchase.
+
+A pause in advance followed, until events showed that Isthmian control
+was a national necessity to the United States. It suffices here to note
+the conclusion of a long diplomatic history. In 1903 the United States,
+having failed to obtain concessions of the desired kind from Colombia,
+supported the province of Panamá in her secession from Colombia, and
+speedily obtained from the newly formed republic a perpetual lease of
+the canal zone, together with a practical protectorate over the Republic
+of Panamá. The United States then proceeded to construct and fortify the
+canal. She also procured from Nicaragua exclusive rights concerning the
+construction of any canal through Nicaraguan territory, and erected in
+fact a kind of protectorate over that republic.
+
+Meanwhile, in the Antilles events were shaping towards control from the
+north. A long-standing trouble concerning Cuba culminated in the
+Spanish-American War of 1898, which brought about the annexation of
+Porto Rico and the Philippines to the United States, while Cuba became
+a republic under the tutelage of that Power. Five years later the United
+States, in order to save the Dominican Republic from European pressure,
+undertook the administration of the revenues of that state. In 1915 she
+interposed to suppress a revolution in Haiti. Finally last year (1917)
+she purchased from Denmark the islands of St Thomas and Santa Cruz.
+Recent rumours as to a proposed further purchase--that of Dutch
+Guiana--have been officially denied.
+
+These advances have not gone beyond the Caribbean area, where
+geographical conditions place the United States in a dominant position.
+Her relations with the more distant southern countries, not touching the
+Mediterranean Sea of the New World, fall into a different category and
+do not directly concern the immediate topic.
+
+But in the Caribbean area the United States has established a Sphere of
+Influence, not indeed explicitly defined as such, but recognised in
+effect by other governments and accepted by some at least of the
+republics occupying that region. The events of the last twenty years
+further indicate that the United States is undertaking the obligation,
+usual in such cases, of imposing a "Pax Americana." As in similar
+instances elsewhere, this Pax Americana has not quite clearly marked its
+geographical limit, nor is it guided by any theoretical consistency, but
+rather by the merits of the case and the test of immediate expediency in
+each instance. Thus, whereas the United States enforces peace in Haiti
+and definitely undertakes to maintain internal tranquillity in Cuba, she
+has on the other hand withdrawn from interposition in Mexico. The
+outside world has, on the whole, treated these matters as the concern of
+the United States and respected the working of the Pax Americana.
+
+Meanwhile, geographical proximity has favoured North American commerce,
+and in recent years more than half the trade of Central America was
+carried on with the United States.
+
+It has been necessary to define the situation, because it is accepted by
+the Allies, while it is at the same time jealously assailed by Germany.
+
+For Germany, too, has won a remarkable position in the same region by
+her economic efforts, which have also their political side. On the one
+hand Central America is in a kind of dependence upon the United States:
+on the other hand, it has been said, with obvious exaggeration, but with
+some epigrammatic truth, that Guatemala before the war had become a
+dependency of Germany in everything but the flag. German intelligence
+and industry had seized the opportunity offered in the recent
+development of a comparatively backward region. Peaceful penetration was
+a work of methodical effort, of organised combination. German firms,
+mostly of recent origin and sprung from small beginnings, always
+preferred to import from Germany in order to favour German trade. Indeed
+they were bound to do so by the terms of the credit granted to them by
+German banks or Hamburg export firms for starting their business. Young
+men came out from Germany--serious, plodding youths, working for small
+pay, taking few pleasures and immersed in business. German retail
+houses, either newly established or formed by the insinuation of Germans
+into native families or native firms, worked in close contact with the
+importing houses. The shipping companies worked with these latter and
+with the Hamburg firms. The chief German achievement in this region was
+the control of the coffee industry, which was acquired by the usual
+German combination of admirable industry, patience and intelligence with
+unscrupulous greed and cunning. Germans advanced money to the grateful
+owners of coffee estates on such terms that the native owner in course
+of time found himself bound hand and foot by ever-increasing debt; and
+the properties usually passed into the hands of the exacting foreign
+creditor, the former owner being often kept on as paid manager. In this
+way, besides doing a good stroke of business for himself, the German
+served Germany by increasing German interests in the country, providing
+cargo for German ships and helping to secure for Hamburg the coffee
+market of Europe. Every little advantage gained by an individual German
+was reckoned as a national gain, as the starting-point for another
+German step forwards. Nor was German advance confined to Guatemala: it
+penetrated all Central America as well as Mexico and the Antillean
+Republics, especially Haiti.
+
+But the maritime war, the British blockade and Black List and, finally,
+the participation of the United States have shaken the fabric thus
+laboriously raised. German ingenuity had overreached itself. For it was
+the insidious and cruel method of German land-grabbing in Guatemala
+which more than anything determined that republic to declare war, in
+order to escape from this ignominious economic dependence, this foreign
+control of a national industry. For it would be difficult to define a
+clear _casus belli_. But in the peculiar form of her declaration of war
+she told the world under which system she chose to live. For in April
+1918 Guatemala announced that thenceforth she occupied the same position
+as the United States towards the European belligerents.
+
+The iniquity of North American intervention in Nicaragua and the implied
+menace to other states were insistently preached by Germany throughout
+Central America; yet, a month later, Nicaragua also declared war,
+proclaiming at the same time her solidarity with the United States and
+with the other belligerent American Republics.
+
+In Costa Rica the Germans represented the non-recognition by the United
+States of President Tinoco, who owed his position to a _coup d'état_, as
+a menacing insult to that Republic. Then, the same Germans intrigued to
+overthrow Tinoco on account of a Government proposal to tax coffee
+stored for future export. The upshot was that, in May 1918, Costa Rica
+declared war. Two months later Haiti took the same decisive step, and
+also Honduras.
+
+The significance of these additions to the belligerent ranks is perhaps
+hardly realised in Europe. Every one of them is a serious reverse in the
+economic war which Germany is waging, and every one makes it more
+difficult for Germans in America to keep up communication with Hamburg.
+
+Indeed, the tale of recent events reads like a mere series of German
+reverses, snatching away advantages already gained. In 1912, the treaty
+for the American purchase of the Danish Antilles was all but complete,
+when German influence in the Upper House of the Danish Parliament
+prevented ratification and thwarted, for the time, the plans of the
+United States. During the present war, the purchase was completed,
+Germany being impotent. Again, Germany, having acquired a strong
+position in Haiti, designed that the Haitian Republic should become a
+Teutonised base of activity, repudiating the Pax Americana and
+threatening the security of American sea-paths. The United States put
+out a hand, and this highly-coloured vision faded away. Cuba, Panamá,
+Guatemala, Nicaragua, Costa Rica, Haiti, Honduras--all of these in turn
+struck at Germany through the declaration of war[3].
+
+Yet Germany, beaten from point to point, still holds her ground in
+Mexico. One of the curious side-scenes of the great war was the attempt
+of the German Foreign Office to contrive an offensive alliance of Japan
+and Mexico against the United States. Mexico was to be rewarded by the
+recovery of Texas. This underhand plot against a neutral nation at peace
+with Germany collapsed at its inception. Yet the present German menace
+in Mexico is not to be despised. The rulers in the Mexican capital
+exhibit an ostentatious cordiality towards Potsdam and sometimes an
+almost petulant impatience towards the Allies. The German is the
+favoured one among foreigners in the republic. Supported by the German
+Legation, the German banks, and the countenance of the Mexican
+authorities, Germans are strengthening their economic hold, particularly
+through the acquisition of oil and mining properties. This advance has
+its political side: for hopes seem to be entertained that a militant
+power, inspired by Germany, may press upon the long southern frontier of
+the United States, disturb her pacific influence in the Antilles,
+threaten the security of her maritime routes, and interpose a barrier
+between her and her scientific frontier on the Isthmus of Panamá. Such
+schemes may sound fanciful, and no doubt in their entirety they are
+impracticable. But it would be a mistake to regard Germany as powerless
+or to undervalue her tenacious and intelligent opportunism. And, in any
+case, the economic position demands attention.
+
+A word may here be said about the German effort to hold up before the
+eyes of all South America the spectre of the "Yankee peril." These
+German efforts have not succeeded, as will be shown later. Yet it would
+be rash optimism to assume that they have won no temporary success.
+Correspondence published by the Washington authorities shows that the
+German Minister at Buenos Aires succeeded in inducing the Argentine
+Government to approach Chile and Bolivia with a view to a combination
+against the United States--a scheme which, if carried through, might
+have produced a split in the political system of the South American
+Republics. A similar tendency appeared in President Irigoyen's attempt
+to convoke a conference of neutral American states, an attempt which has
+had no result except the dispatch of Mexican missions to Buenos Aires.
+Such incidents cannot be ignored: they illustrate a movement which is
+not quite effete.
+
+From what has been said above it is obvious that German designs in
+Central America and the Antilles are not quite recent in their
+inception. The same is true of another field which for a generation past
+has attracted German ambitions. The flourishing self-contained
+German-speaking communities in Southern Brazil offered an attractive
+goal to an empire which was feverishly building ships, pursuing a
+maritime future and hunting for colonies. Here was a German colony in
+existence and almost constituting already an _imperium in imperio_.
+German emigrants, brought out by the Brazilian Emperors between 1825 and
+1860, had by thrifty and intelligent industry done much to develop the
+south; and their descendants--now estimated to number 400,000--inhabited
+German towns, with German schools, newspapers and churches, where even
+proclamations of the Brazilian Government were published in German.
+Although not a product of the modern German Empire, this _Deutschtum im
+Ausland_ has been studiously cultivated by that empire through every
+possible agency, and especially by imperial grants to German schools,
+whose pupils were taught that they were Germans owing a prior allegiance
+to Germany. Some hope was entertained of carving a Teutonic state out of
+Brazil, perhaps to form nominally, at all events for a time, an
+independent republic. The disturbances in the south which followed the
+establishment of the Brazilian Republic appeared to favour this chance,
+which depended however on one condition, the countenance of Great
+Britain in order to cope with the opposition of the United States. But
+in any case the vigour and increase of the German element was to
+dominate Southern Brazil and help to bring that region into moral
+dependence upon Germany. That these designs were not viewed in South
+America as wholly imaginative, is proved by a recent incident. The
+Uruguayan Government, after revoking neutrality and seizing the interned
+German ships, asked and obtained an assurance of Argentine support, in
+case Uruguayan soil should be invaded by Germans from Southern Brazil.
+It may be added that recent German commercial penetration has been
+particularly active in Brazil.
+
+Owing to their remoteness and lesser numbers, the German communities in
+Southern Chile--whose first founders emigrated from Germany after the
+troubles of 1848--did not invite such large political designs, although
+there is reason to think that in the earlier part of the war, when a
+German war fleet still kept the sea, the manifold activities of Germany
+included some notion of obtaining a permanent footing in the Pacific.
+These German-speaking settlements have been carefully cultivated, by the
+same methods as those used in Brazil, to become a Germanising force in
+Chile and a German outpost on the west coast. In 1916 a Chilian-German
+League was established, to include all persons in Chile of German
+origin and language, with the intention that the members should use
+their influence as Chilian citizens, especially at election time, on
+behalf of German interests.
+
+Another influence which Germany strives to turn to account is the recent
+movement represented by the _Unión Ibero-Americana_, which seeks to draw
+together Spain and the Spanish-American republics. The German efforts to
+give a Teutonic tinge to the present Spanish movement of national
+revival look also towards Latin America, in the hope that friendship
+with Spain may tell against French and North American influence; and
+attempts are being made to exploit for that purpose the Ibero-American
+celebration which is to be held in Madrid in October, 1918.
+
+Lastly, in estimating political forces which have to be reckoned as
+factors in the conflict, some mention should be made of the very warm
+sentiment towards France which has prevailed for generations among
+educated South Americans--a sentiment which passes the bounds of mere
+private or even semi-official relations. This feeling is not universal,
+and would hardly be admitted in clerical and military circles. But it is
+sufficiently strong and general to be remotely compared to the sentiment
+which a Greek ἀποικία usually entertained towards the mother-city.
+French thought permeates the work of Latin-American historians and
+political writers. French example and theory mould the form and the
+action of governments. Paris is felt to be the capital and the centre of
+inspiration for Latin civilisation. The debt of South America to France
+has been generously, and indeed affectionately, avowed by a succession
+of Argentine writers. A recent German semi-official utterance openly
+admits and deplores the historic attachment of South America to France.
+This attitude towards France can hardly fail to have some public weight;
+and there is no doubt that the course pursued by Brazil has been partly
+inspired by love of France.
+
+FOOTNOTES:
+
+[2] For the sake of brevity and clear relation to the present topic,
+this history is not here examined with reference to any theory or
+doctrine of policy. In order to explain the present position, the
+salient facts only are given, but not the comments and explanations of
+statesmen, nor the diplomatic passages leading to these events. One may
+digress for a moment to point out that a sufficient interpretation of
+these events is to be found in the natural expansion of a vigorous
+growing people. In the process of "winning the wilderness and conquering
+the continent" the United States found that a considerable part of the
+field was in nominal possession of those who were doing little to use or
+civilise it. These claims, which obstructed progress, were successively
+disposed of. Nor has it been found possible to limit that advance to
+certain indispensable acquisitions of territory. National security has
+demanded varying degrees of control over neighbouring peoples of
+inferior development. The process finds many historical parallels: and
+it is an intensely practical, not a theoretic, matter.
+
+[3] It may be pointed out that for nearly seventy years the United
+States has acquired no territory from any Latin-American republic,
+except the perpetual lease of the canal zone, which was freely granted
+on most profitable conditions by the Republic of Panamá. Cuba and Panamá
+owe their separate existence, together with an unexampled prosperity and
+internal tranquillity, to the United States. In Nicaragua and Santo
+Domingo the great material benefits of interposition seem to outweigh
+sentimental objections. The financial obligations of Nicaragua have been
+adjusted through the help of the United States; and it may perhaps be
+felt that improved public solvency, material prosperity and internal
+security, though effected through outside aid, enhance instead of
+diminishing the national dignity.
+
+
+
+
+CHAPTER II
+
+THE GERMAN OUTLOOK ON LATIN AMERICA
+
+
+"South America is the special theatre and object of German commercial
+industry." This emphatic declaration--reiterated in various forms by
+other German authorities--is the theme treated by Professor Gast,
+Director of the German South American Institute at Aix-la-Chapelle, in a
+pamphlet entitled _Deutschland und Süd-Amerika_, which may be regarded
+as a semi-official exposition of German objects and opportunities. The
+pamphlet appeared in the latter part of 1915. The events which have
+since occurred, however damaging they may be to German hopes, do not
+affect the views expressed. Since this advice from a German authority to
+Germans is a frank revelation of German views, it seems worth giving a
+very brief abstract of the main points, which the writer elaborates at
+great length, though he does not enter upon details of business method.
+
+"The German Press," says Professor Gast, "has never published so much
+about Latin America as during this war. This proves the importance of
+German relations there and the need of clear ideas concerning them. An
+economic competition, intense beyond all example, has sprung up
+concerning Latin America. The chief feature is the 'Financial Offensive'
+of the United States. The present grouping of competitors is accidental
+and false. The natural conflict is between the United States on the one
+side, and on the other side all industrial and exporting peoples,
+including Japan. The United States, the most dangerous competitor, is
+handicapped by the higher cost of production in North America and by the
+want of that facility of adaptation to customers' needs in which Germany
+excels. Yet the war has revealed the weakness of German reputation.
+Everywhere the prevailing strain is antipathy to Germany. It is the duty
+of Germans to put aside resentment and to strengthen their economic
+position. For trade with the two Americas is the chief source of
+prosperity for modern German commerce, particularly that of Hamburg. And
+after the war this trans-Oceanic trade will be a matter of yet more
+urgent national importance."
+
+This general survey is followed by an examination of special
+opportunities open to Germans. "Germany has not the many-sided relations
+with Latin America possessed by the Latin peoples of Europe, nor the
+politico-geographical advantages of the United States, nor the strong
+capitalist position of Great Britain. She must make the most of what she
+does possess. Her main asset is the German in South America. Every
+German abroad means the investment of interest-bearing capital for
+German cultural expansion. Two things are required of him, to win esteem
+by good work and to place his personal influence at the disposal of
+German national ends. The compact German communities in Brazil and in
+Southern Chile should be supported and organised from home, but not
+obtrusively, lest local feeling be aroused. They may perhaps serve
+Germany best by a partial mingling with the native population, so as to
+spread German culture and the taste for German goods. But, everywhere,
+all individual Germans are Germanising agents. The German merchant
+particularly is the missionary of cultural and political influence. So
+also the German soldier, particularly the German officers employed as
+instructors in Chile and Argentina. Most South American officers feel a
+professional sympathy for Germany. Hence spring useful personal
+friendships: to foster and enlarge these is an urgent duty. Germans
+exercise other professions which facilitate the patriotic diffusion of
+German culture. Such are physicians, who find peculiar opportunities in
+their intimate relations with families in their homes; the clergy, both
+Protestant and Roman Catholic; teachers, whose proved idealism is an
+admirable equipment for the spread of German culture; scientific men,
+journalists, surveyors, geologists, professors in training colleges. If
+possible they should work in combination, as they do in the German
+Scientific Club of Buenos Aires. Every one of them must use every
+professional opportunity and every item of personal influence and
+private friendship for the advantage of Germany.
+
+"A knowledge of German culture must be spread by a systematic
+educational movement. But this must be done tactfully. The German's
+propensity to foreign studies will aid him. He must equip himself by
+assimilating Latin culture, must use his knowledge of French culture,
+must oppose French influence by encouraging Spanish culture. His object
+is to catch souls; and, next to financial strength, the first necessity
+is tact."
+
+Two points stand out in this very candid statement. First, every German
+abroad is an item in the national balance-sheet; he must earn interest.
+The intimacy between the pastor and his flock, the physician's
+intercourse with his patient, are set down on the credit side of the
+national profit-and-loss account. Secondly, the most profitable method
+is a liberal education. There is something whimsical in the combination
+of inhuman material calculation with humanising influences, and one may
+smile at the heavy solemnity of the suggestion that the German will find
+it pay to acquire tact and to Latinise himself for outside intercourse.
+But the suggestion should not be dismissed as absurd. Whatever can be
+done by effort, study, and will-power the German will do. He is training
+himself to be a more formidable competitor than ever in the economic
+arena.
+
+Indeed, the pamphlet is valuable, not only as a hint for the future, but
+also as an avowal of methods which are already at work. One of these is
+a deliberate system of politic and profitable marriages. German clerks
+receive promotion only on condition that they marry native girls and
+establish homes in the country. This policy has been so steadily pursued
+that everywhere German business men have entered Latin-American families
+and exercise a Teutonising influence. Through marriage also, accompanied
+by skilled and profitable management, Germans acquire control of
+property and of trading concerns. Again, owing to their reputation for
+expert efficiency and scientific competence, Germans fill many posts of
+influence and trust in universities, scientific institutions and
+government departments. Argentina is an example. In the National
+University Germans control the engineering and chemical sections, where
+their pupils are trained to use German apparatus and methods. German
+curators in the Geological Museum receive early information as to any
+discoveries of minerals or oil. Germans employed as experts in the
+public service learn details of any public works proposed by the
+government or the municipalities. Reports on such schemes pass through
+their hands and, since estimates are not carefully checked, they are
+thus able to favour German trade at the expense of the Argentine
+tax-payer.
+
+In every city the German _Verein_ unites the German community, so that
+Germans may avoid competition and may co-operate with one another and
+with Germans in the Fatherland. The bank and the merchant work in close
+combination and have at their disposal all the information gathered by
+German employees in other banks and in business firms. The German has
+been quick to anticipate others in occupying new ground: for example, in
+the remote but vast and productive region of Eastern Bolivia, watered by
+the three great navigable affluents of the Madeira, a region which is
+just beginning to awake to the promise of a great future, the German
+trader hitherto has scarcely had a competitor. Again, the German has won
+predominance in the electrical and chemical industries by applying his
+practical scientific aptitude to the supply of new wants. Lastly, the
+German is distinguished by close attention to detail and adaptation to
+local needs.
+
+Yet Germans note and deplore "a constant strain of antipathy to Germany,
+a wave of anti-German hate." The remedies suggested are: first, a more
+efficient German service of news, and secondly, "a systematic cultural
+activity, conducted with push and comprehensive inspiration."
+
+What is being done in Germany to realise these methods? First may be
+mentioned the various associations for extending German influence abroad
+and binding to the Fatherland all Germans living abroad, whether in
+South America or elsewhere. Such are the Pan-German League, the German
+Navy League, the League for Germanism abroad, the League for German Art
+abroad, the School League which gives support to German schools outside
+Germany, the German rifle club, with its headquarters in Nuremberg, to
+which rifle clubs abroad are affiliated, and, lastly, the Foreign
+Museum, recently founded under the highest official patronage, which
+arranges economic exhibitions in various German cities. Although these
+associations were not founded particularly for Latin-American objects,
+their present efforts are particularly bent in that direction, as the
+Pan-German League lately declared. But, besides these comprehensive
+agencies, Germany possesses three institutions specially devoted to
+Latin-American purposes. One of these existed before the war, namely the
+German South American Institute at Aix-la-Chapelle, to which the
+Imperial and Prussian authorities have entrusted "the cultivation of
+scientific and artistic relations with South and Central America on the
+lines of a general cultural policy." Its objects are to draw together
+German and South American students, to maintain a South American library
+and information bureau, to encourage in Germany the study of South
+American matters by prize essays, travelling scholarships and similar
+methods, and to use every means of making German intellectual work known
+to South Americans. The Institute publishes a Spanish monthly
+illustrated periodical, _El Mensajero de Ultramar_, and also a
+Portuguese version, _O Transatlántico_. These papers are well calculated
+to uphold German culture across the Atlantic: they are admirably got up
+and aim at presenting an attractive picture of German life and
+institutions, dwelling particularly on the steady continuance of German
+industry, artistic production and even sport during the war. The
+Institute also publishes a German periodical, strictly business-like and
+containing only technical illustrations, for the purpose of keeping
+Germans informed on Latin-American affairs.
+
+The Institute at Aix, although its ultimate object is mainly economic,
+leaves business methods and matters of immediate economic concern to
+other agencies. Before the war there flourished already in Germany a
+League for Argentina and one for Brazil. In 1915 these two Associations
+combined in order to form a German Economic League for South and Central
+America. A prospectus was issued and a meeting was held in Berlin under
+the presidency of Herr Dernburg, who spoke of the coming economic
+struggle and pointed out that German trade, except in the electrical
+industry, was not supported by large capital investments such as their
+rivals possessed. The dependence of South America on other industrial
+nations, owing to want of coal and iron, would facilitate German
+investment, to supply this defect. Germans had failed to make friends
+through not understanding the psychology of South Americans. German
+strength and practical energy must avoid arrogant pedagogic ways and
+must make their way through a tactful and sympathetic propaganda.
+
+At this meeting the league was inaugurated with 120 members. Very soon
+it numbered 1000. Among the associations which figure as members are the
+German Industrialist League, the German Mercantile League, the Berlin
+Chamber of Commerce, the South German Export League, the League for
+Germanism abroad, the Society for German Art abroad. The three great
+banks, known in Germany as the three D.'s, are members, so also the
+great Shipping Companies; also newspaper and publishing firms; also many
+of the great industrial syndicates. A notable feature in the work of the
+league is the maintenance of a club in Berlin where business men and
+other travellers from South America are welcomed. A great point is made
+of this work of personal cultivation. The object is to make by
+hospitable attentions a Germanophil convert of every Latin-American
+visitor to Berlin and send him back across the Atlantic a missionary for
+German culture and German business. But the principal aim of the league
+is to unite all Germans who have any business interests in any part of
+Latin America, so as to pool together their knowledge, their resources,
+and their efforts. In this economic war the Germans move, as it were, in
+mass formation. Branches of the league were speedily established in
+every one of the twenty-one American republics, and these branches
+co-operate actively with the parent society at home in the furtherance
+of German influence and economic advantage.
+
+A third institution, the Hamburg Ibero-American League, has been formed
+in the metropolis of German Latin-American trade. Already before the
+war, besides the usual trading organisations of a great port, Hamburg
+possessed a Technical High School which is practically a university of
+trade and industry; a Seminary for Romance languages and culture, which
+maintains a South American library; and a singularly complete bureau of
+information concerning all over-sea countries, which is known as the
+Hamburg Colonial Institute.
+
+But Hamburg still felt a want, which was supplied by the formation of
+the Hamburg Ibero-American League. Its objects are: (1) in Spain and
+Spanish America: to spread a knowledge of Germany's resources and to
+cultivate friendly relations in government departments, semi-official
+institutions and social, literary and scientific circles. To circulate
+the illustrated weekly _El Heraldo de Hamburgo_, also pamphlets in
+Spanish and Portuguese; to station confidential emissaries in
+appropriate posts; to encourage interchange of visits and to inculcate
+the advantages which Germany offers as a training-ground for every
+calling. (2) In Hamburg: to prepare for intercourse after the war by
+arranging lectures and by organising language courses in German, Spanish
+and Portuguese, and particularly to establish a _Centro Ibero-Americano_
+with club, reading room, and information bureau, a house fully equipped
+for the hospitable reception of travellers from the Peninsula and from
+South America. The league is to consist of twenty-two sections, one for
+Spain, one for Portugal, one for each of the twenty Latin-American
+republics, in order that all who have interests in any part of the
+Ibero-American world may support one another.
+
+A fourth association, the Germanic League for South America, has been
+formed more recently for the purpose of uniting together persons of
+German speech and origin in Latin America and preserving their Germanic
+character, particularly by means of German schools. This institution has
+a special significance just at the time when the Brazilian Government
+has determined that all its citizens shall be Brazilians and nothing
+else.
+
+The three leagues which have their headquarters in Berlin, Hamburg and
+Aix-la-Chapelle have been in active movement for some time, and there is
+evidence from South America that they do their work in a thorough and
+effective fashion and have won considerable success, particularly
+through cultivating the friendship of South American visitors to
+Germany.
+
+But in estimating German designs, we must look beyond these German
+leagues, which are merely an incidental part of German economic
+organisation. That subject far transcends the present topic, but
+embraces it so closely that the main outlines may be indicated. Most of
+the German industries are consolidated into cartels or syndicates in
+such a way as to eliminate competition, regulate prices and output,
+distribute risks or losses, facilitate the export of surplus products,
+and apportion business between the members of the cartel. The whole body
+of industrialists is united in league; merchants or exporters are
+similarly united; a small group of great banks, practically constituting
+one power, manages the financial side of the national industry and
+commerce with a singular mixture of daring and judgment, guided by a
+wonderfully complete enquiry system, a veritable international secret
+service; the great shipping companies, which coalesce more and more into
+a single huge national concern, work in close co-operation with
+organised industry and organised trade; railway transport is managed by
+the state so as to dovetail into the same machine: and the whole forms
+altogether a carefully constructed system of co-operation, cohesion and
+united action. That organisation has not fallen into abeyance during the
+present war. On the contrary, month by month it is being perfected,
+rounded off. Lastly, Germany has appointed, as it were, an economic
+headquarters staff, a small group of expert business men who for two
+years past have been devoting themselves to the working out of means for
+transferring Germany from a war basis to a peace basis with the least
+possible disturbance and delay. This higher command has its hand upon
+the levers of the whole machine, which, upon the conclusion of peace, is
+at once to resume with redoubled energy its interrupted task, industrial
+and commercial recovery, and particularly the economic conquest of Latin
+America.
+
+In order that we may know what Germany is doing, these German
+organisations have been noted here. It would be impertinent, in both
+senses of the word, to compare or to criticise British methods. The
+problem of British reorganisation is being studied by experts and worked
+out by those in authority, and it is constantly expounded in official
+publications. But, without attempting to give individual opinions, one
+may quote some of authority.
+
+"Great nations do not imitate." We may learn much in detail from the
+Germans; but Englishmen could not adopt the German system unless by
+first turning themselves into Prussians. Our people would never submit
+to Prussian methods of state control. Moreover all British experience
+shows that in this country such control would be disastrous. Yet
+competent authorities agree that immediate organisation is a necessity.
+It cannot be beyond the wit of Englishmen to devise means whereby
+British individual enterprise, common sense and self-reliance may work
+through methods of systematic organisation, combination, united action.
+From the friends of Britain everywhere comes the same warning. It is
+most appropriate to conclude with one uttered by a South American of
+unimpeachable authority, Don Pedro Cosio, former Uruguayan Finance
+Minister, who recently represented the Republic of Uruguay in this
+country. In a report to his government on the organisation of labour in
+the United Kingdom he writes, "The nation which is the first to organise
+its industry for the commercial campaign will be the one which will
+occupy the forefront in foreign markets."
+
+
+
+
+CHAPTER III
+
+THE ECONOMIC WAR AND ITS PROPAGANDA
+
+
+"Economic War":--This reiterated German phrase is not mere metaphor. The
+Germans pursued in peace the operations of war. To them commerce meant
+not merely the pursuit of trade in peaceful rivalry with others, but a
+sustained effort to defeat and oust rivals and reduce to economic
+subjugation the lands penetrated. By plunging into open war, which was
+meant to continue and to confirm that process, the Germans have risked
+their previous gains. Their own weapons are turned against them. The
+economic character of the actual war and the efficacy of the economic
+weapon in the hands of the Allies become more and more evident. In the
+early months of the war this weapon was not wielded with thorough
+decision, and Germans beyond the Atlantic were able to carry on
+considerable European trade. But today the German merchant is striving
+to defend, against an overwhelming weight of maritime pressure, the
+ground which he had won through a generation of laborious and patient
+effort.
+
+This economic struggle covers all the shores of all the Oceans. Its
+Latin-American phase has a special interest owing to the remarkable
+position attained in those lands by the Germans, the high value which
+they attach to that position, and their special efforts to maintain it
+under present difficulties. The most varied ingenuity is called into
+play to circumvent the barrier which now cuts off those countries from
+Germany. Present risks and losses are viewed as part of the inevitable
+waste of war, as an outlay deliberately incurred in the all-important
+task of holding open the gate through which, upon the conclusion of
+peace, the fruits of German industry are at once to pour in an
+irresistible stream, in exchange for those raw materials which are
+urgently needed to feed the industrial life of Germany after the war.
+This is the constant preoccupation of German business circles--the need
+of raw materials. And this is the reason why Latin America, the great
+source of raw materials, is courted with eager hope and anxious
+apprehension.
+
+It is noticeable that a very large part of the cargoes condemned by the
+British Prize Court, as actually intended for the enemy though consigned
+to other pretended destinations, consists of goods from Latin America.
+For example, in August 1917 the Court condemned quantities of coffee,
+seized on a score of neutral steamers and ostensibly consigned to
+Scandinavian and Dutch merchants, but in fact shipped by a German firm
+at Santos for the parent house in Hamburg. Two months later, it was
+stated in court that nearly £400,000 worth of wool, shipped from Buenos
+Aires to the Swedish Army Administration at Gothenburg, had been seized
+by the British as being in fact destined for Leipzig. At the same time
+the Court condemned a number of manufactured rubber articles which had
+been found concealed in a passenger's clothing. On a later occasion,
+coffee and cocoa valued at nearly £200,000 were condemned, being part
+cargo of a Swedish ship bound from California to Gothenburg. They were
+consigned by a new and insignificant firm in San Francisco to various
+persons in Scandinavia, but were in fact on their way from Guatemala to
+Hamburg through Sweden.
+
+The elaborate webs spun by German traders and revealed by intercepted
+correspondence were exposed in the Prize Court. Their methods were to
+find persons in neutral countries as nominal consignees, to act as
+intermediaries for getting the goods to Germany; to set up bogus
+companies for the same purpose; to use false names, or names of persons
+having no genuine interest in the consignment, and to manufacture false
+documents in order to give the appearance of neutral business. This was
+done to evade capture by deceiving the belligerent searchers. In some
+instances these methods succeeded. Quantities of coffee, consigned to
+Scandinavia, managed to elude the allied warships and reach Hamburg.
+
+These are cases of import into Germany. The reverse process, export from
+Germany through neutrals, follows similar lines. German goods, falsely
+labelled and described as Swiss or Dutch or Scandinavian manufactures,
+have found their way across the Atlantic in neutral ships.
+
+The Post Office has also served as a channel of secret trade. Pictures
+in the Press have exhibited the odd ingenuity of these devices: how
+coffee from Brazil to Germany was found concealed in rolls of
+newspapers, and how thin slabs of rubber were sent by post as
+photographs, also how quantities of jewellery have been despatched from
+Germany for South America in letters and in bundles of samples or
+journals. Goods so sent from Germany through the Post Office are mostly
+such as combine small bulk with high value--especially drugs and
+jewellery.
+
+These partial examples, although each instance may seem small enough,
+indicate collectively a good deal of enemy trade which has found devious
+routes under stress of war. These manœuvres may seem at first sight
+merely trivial curiosities or at all events to have no more than
+ephemeral importance, since they were improvised to overcome temporary
+obstacles. But, apart from their intrinsic interest as episodes in one
+phase of the war and as evidence of the efficacy of Sea Power, these
+devices merit practical attention in view of proposals to fasten
+economic fetters upon Germany by the terms of peace, and in view of the
+odium which may tell against German commerce for years to come. German
+business men are preparing to meet these difficulties by continuing the
+method of exporting through neutral agents, and are proposing in some
+cases to transport to a neutral country the work of completing
+manufacture, in order that goods so produced may appear to be
+indisputably of non-German origin; and the Foreign Trade Department at
+Berlin has advised German merchants to employ, for some years after the
+war, travellers and agents who can pass as French or English. It would
+be unwise to underrate any instance of German inventive persistency.
+
+Before the United States came into the war, that country was the channel
+of much German trade with Latin America. That road is now closed. The
+United States Government has gone further. It refuses coal in North
+American ports to ships proceeding from South America to neutral
+countries in Europe, unless the innocence of the cargo can be
+conclusively proved. This regulation shows that the United States
+authorities have knowledge that the ultimate destination of much South
+American cargo, particularly from the Argentine Republic, has been
+Germany. The blockade becomes more stringent through the co-operation of
+the United States and of Brazil, and through the action of the statutory
+list of "persons and firms with whom persons and firms in the United
+Kingdom are prohibited from trading." British commerce is a big and
+living thing, and the prohibition hits very hard any firm placed on this
+Black List. One finds here not only Teutonic names, but also
+innocent-sounding Latin names: for if a Latin-American is found to be
+acting as agent or cloak for a German trader, he finds himself pilloried
+on the Black List beside the German. There are obvious ways of evasion.
+The name of a clerk or door-keeper or a lady type-writer may appear as
+consignee. A varied ingenuity has to be met by constant watchfulness,
+and the list is regularly altered and kept up to date. The Black List
+has been much criticised for omissions, which are sometimes due to
+motives of expediency. But the bitter complaints about its injustice are
+unsolicited testimony to its efficacy. A striking example of its working
+was manifested in September 1917. After the outbreak of war, such of the
+Chilian nitrate works as were owned by Germans were unable to sell their
+nitrate or even to obtain jute bags, the supply of which is in British
+control. The unsold stocks went on accumulating, until one by one the
+German nitrate works were compelled to close down. Long negotiations
+between Santiago and Berlin found at last a remedy for this waste. It
+was agreed that the large deposits of Chilian gold in Germany should be
+set against the German-owned nitrate in Chile. The Chilian Government
+bought the nitrate, and paid the German owners by drafts on Berlin,
+which were met out of the Chilian money deposits in Germany. Thus
+Germany received Chilian gold in exchange for the inaccessible nitrate,
+while the Chilian Government received nitrate in exchange for its
+inaccessible gold. Chile then sold the nitrate for American gold to the
+largest manufacturer of explosives in the United States. Thus, one
+result of the blockade and the statutory list is that this German
+nitrate goes to make munitions, to be hurled at the Germans on the
+French front from American guns. The German Government, by sanctioning
+this sale of explosive material to its enemies, gave evidence of its
+earnest desire to stand well with Chile. On the other hand, Germany was
+impelled to this agreement in order to obviate grave financial loss to
+Germans and especially to save a big Hamburg firm from disaster.
+
+The active entry of Brazil into the war has in great part superseded the
+action of the statutory list in that country: for Brazil has taken
+decisive measures towards Germans within her borders. All enemy
+enterprises are in the hands of government receivers. All contracts for
+purchase of coffee or other Brazilian products by Germans are null and
+void; and in cases where payments had been made by the German
+purchasers, all such payments must be handed over to the official
+receivers. The United States also publishes a Black List of firms with
+whom her citizens are forbidden to deal. Evasion of allied watchfulness
+becomes more and more difficult: yet ingenious, and sometimes successful
+efforts are made to find loopholes in the wall of the blockade.
+
+There are now in Buenos Aires nearly 150 Turkish firms--Levantines of
+every denomination, Mohammedan, Christian, Jewish. Some of these are
+long-established and well-reputed houses. But most of them have sprung
+up during the war. Some of them, starting with exiguous capital, have
+made large fortunes in a year or two of trade. This has been done by
+supplying to German black-listed firms goods imported direct from
+Manchester and Bradford. Through the close co-operation of the German
+bank with German trade, these Syrians and Armenians are enabled, by the
+Germans standing behind them, to pay cash against documents in place of
+the usual sixty to ninety days' credit, and thus have a great advantage
+over the British or allied trader. The British authorities now permit
+export only to certain registered Turkish firms. The restriction does
+something to limit the abuse of this kind of trading.
+
+Besides these ingenious efforts to keep open communication with Europe,
+there is another side of the commercial war. In the neutral states of
+Latin America the German business man is as ubiquitous and energetic as
+ever, nay more so as he has greater difficulties to contend with. So far
+as he can, he sells from accumulated stocks of German goods, for the
+German importing houses before the war had gathered great stocks,
+especially in Chile. Where this resource fails, he repairs his stock by
+buying anywhere. Up to April 1917 he bought largely in New York. Now he
+buys where he can and what he can--American goods, French goods, British
+goods--anything to hold the market until the ocean shall be free once
+more to German keels carrying German goods.
+
+From the Argentine Republic 6000 young Englishmen came home to serve
+Britain on the fields of France. The young German would have found
+difficulty in getting home, even had he wished to do so; so for the most
+part he stayed in the River Plate. Other Germans have been released from
+military service and sent out as commercial travellers; for the German
+Government regards this too as National War Service. Thus today there
+are three German commercial men in the River Plate to one Englishman.
+The resources and confidence of the German traders are surprising. They
+have bought great quantities of wool in the River Plate--not so much
+indeed as is generally supposed; for German emissaries, in order to
+force up the price of wool to the Allies, have methodically made
+specious but fictitious offers of high prices to sheep-farmers all over
+the Argentine Republic. Yet, even so, German traders hold large
+quantities both of wool and of grain. These have been purchased partly
+for selling at enhanced prices on the spot, but principally with a view
+to after-war trade and the supply of raw materials to Germany. These
+purchases are proof of firm belief in the future. Moreover, both in
+Chile and in Argentina the interned German ships await their after-war
+cargoes for Europe. And when the Chilian or Argentine asks whether the
+German will be free to use these ships when peace comes, the Englishman
+cannot reply. The ships are there, proof of Germany's future power to
+trade.
+
+And the Germans are active not only in trade. They have learnt from
+British example that the road to business in Latin America is the
+investment of capital. And, strange as it may seem, the German has
+peculiar opportunities of investment at the present time. Such limited
+trade as can be carried on yields great profits. There is difficulty
+about remitting funds to Germany; and in any case "victory war loans"
+and other investments in the Fatherland may seem less attractive than
+investments in those Latin-American lands which look forward to rapidly
+expanding prosperity after the war. Accordingly, the German merchant is
+not only buying raw materials; he is also taking a share in the movement
+of home manufactures which now offers peculiar opportunities to foreign
+enterprise. Moreover, German firms in Buenos Aires have invested largely
+in short loans to the Argentine Government. Besides these private
+investments, which, like all German activities, have their official
+side, loans have been repeatedly pressed on the Argentine Government,
+ostensibly by neutral financiers (first in the United States and
+afterwards in Spain) but in fact by Germany, evidently for immediate
+political as well as for ulterior economic objects. These offers have
+been declined. A German loan openly offered to Uruguay has also been
+refused.
+
+Obviously, the whole story of German war-efforts in Latin America cannot
+yet be told. Enough has been said to indicate the character and the
+intensity of those efforts. For this far western front Germany has
+mobilised a business army, specially trained for the nature of the
+country and for the kind of operations wherein it is to be engaged.
+These efforts and aspirations are best illustrated by a recent utterance
+from the Hamburg branch of the League for Germanism abroad:--"We should
+like to insist that South America, the main field of our activity for
+many years past, constitutes a great sphere. Wide areas, with great
+possibilities of development, but little cultivated hitherto, are
+waiting to be opened up. It must be our business to employ here all our
+strength in order to retain and to make useful to ourselves these
+countries with their markets and raw materials. What we have to do is to
+_arm for the Peace_ and to collect money, in order to be able
+immediately to act with energy--with our whole strength and with
+adequate resources."
+
+       *       *       *       *       *
+
+In this "arming for the Peace" there is one weapon which demands special
+mention, namely the influencing of opinion by printed propaganda.
+
+The German mobilisation of the Press is a vast business controlled by
+the State. Upon the outbreak of war this organisation undertook the
+special work of war propaganda through two newly formed departments: (1)
+Press Office for influencing neutrals, (2) News Service for Spanish- and
+Portuguese-speaking countries. This institution of a special
+Ibero-American service proves the prominence given to the work in the
+Spanish- and Portuguese-speaking lands. The last words obviously include
+the Peninsula as well as Latin America. Nor can the propaganda carried
+on in Spain be dissociated from that in Spanish America. "Spain is the
+way to South America," writes a Spaniard discussing this very point. The
+popular illustrated Spanish prints _A.B.C._ and _Blanco y Negro_, which
+carry on a vehement Germanophil propaganda, are carefully perused, as
+coming from "home," by Spanish emigrants throughout Latin America, who
+thus become, half unwittingly, disseminators of German views and of
+belief in German victory.
+
+For the first object of this propaganda is to represent Germany as
+invincible in war. This military propaganda is an essential part of
+economic efforts. The Germans hold up a picture of German sagacity,
+system, thoroughness, efficiency. They desire to impress as well as to
+persuade. They know the effect produced by their victory in 1870. Credit
+and confidence are the greatest of commercial assets; and in this case
+economic credit is to rest upon belief in military strength.
+
+In South America, as in Spain, the method is to capture the press, and
+so disseminate German war-news, pro-German articles, photographs and
+cartoons. But it was not enough to control or inspire existing
+newspapers. In many capitals the Germans started new journals, printed
+in the vernacular. Naturally, the chief effort was made in Buenos Aires.
+Early in the war, a German organ, _La Unión_, was founded, in order
+that the Porteño, as he walked the street or travelled by train or
+tramway, might have the German case daily and forcibly presented to him.
+Throughout Latin America, a dozen or more of newspapers have been thus
+founded for propaganda purposes, some of them illustrated by effective
+cartoons. The strangest examples of this journalistic campaign are two
+Turkish newspapers, _La Bandera Otomana_ of Buenos Aires and _O Otomano_
+of São Pãolo, which urge the cause of the Central Powers among Orientals
+in those countries. Besides these purely German efforts, a host of
+newspapers, many of them the local journals of country towns, serve the
+German cause throughout Latin America, the newspaper offices sometimes
+acting as distributing agencies for periodicals printed in Germany in
+the Spanish tongue.
+
+For, besides German and Germanophil periodicals published in America,
+others are produced in Germany for circulation in those countries. The
+number and the excellent quality of these Spanish productions of the
+German printing-press are remarkable. _La Revista de la Exportación
+Alemana_ is a most effective organ for German business, exhibiting side
+by side, in pictures and letter-press, triumphs in the field and
+triumphs of industry. The monthly _Mensajero de Ultramar_ and the weekly
+_Heraldo de Hamburgo_ have been already mentioned. Hamburg also produces
+the well-known weekly picture-paper, _Welt in Bild_, with letter-press
+in twelve languages. These well-written and well-printed newspapers are
+widely circulated in Latin America in order to uphold the German cause.
+
+In addition to these permanent publications, special war periodicals are
+issued, every one of them a German trumpet. Not least of these is the
+comic paper _La Guasa Internacional_, which holds up the Allies to
+ridicule and abhorrence in cartoons, squibs and sketches. A diary of the
+war with a review of political and military movements is given in the
+illustrated monthly _Crónica de la Guerra_. Another chronicle is _La
+Guerra Europea Mirada por un Sud-Americano_, a piece of war propaganda
+written by a Latin-American soldier, Señor Guerrero, who was, until
+recently, Peruvian military attaché at Berlin. But perhaps the most
+effective of these war periodicals is _La Gran Guerra en cuadros_, which
+presents, in a series of pictures, the war as meant to be seen by
+neutral eyes. All these periodicals attribute economic blunders and
+financial errors or weakness to the Allies, sometimes making adroit use
+of British or French self-criticisms: on the other hand, they magnify
+German economic strength and organisation. This main object appears in
+an article on "After-war commercial relations between Spanish America
+and Europe" published in _El Mensajero de Ultramar_, which argues that
+Germany will suffer least of all the belligerents from the effects of
+the war; and that afterwards she will be the best purchaser and also the
+most capable provider for Latin America. Such is the reiterated refrain
+of a host of periodical publications.
+
+In addition to periodicals, Germany pours over the Spanish-and
+Portuguese-speaking world a constant inundation of fly-leaves,
+photographs, pamphlets, books and miscellaneous war literature,
+preaching German strength, efficiency, humanity, and even the democratic
+character of German institutions.
+
+What is the result? Has German propaganda succeeded in moulding
+Latin-American opinion concerning the war? Opinion in those countries
+has been moved by an argument more potent than all the German
+propaganda, and that is the German submarine. The German offers to South
+America with one hand persuasive self-eulogies, while with the other
+hand he sinks her unarmed trading ships and drowns her sailors.
+Unrestricted submarine warfare and the barring of zones to navigation
+have drawn Brazil, by successive steps, into active belligerency, and
+have done much to bring about rupture of relations and declarations of
+war by other Latin-American republics. Yet it would be a mistake to
+conclude that German propaganda has entirely failed. The Germans
+certainly think it worth while to continue it. The pavements of Buenos
+Aires are sometimes ankle-deep with pro-neutrality and anti-ally
+leaflets. But it is principally through the persistent and reiterated
+voice of the newspaper press, aided by the unremitting personal efforts
+of every German and every friend of Germany, that she wages this
+secondary warfare, this strategy of moral influence, which mobilises
+public opinion, diffuses impressions, colours events, creates an
+atmosphere.
+
+A circular was lately issued to the German League in Chile urging that,
+if propaganda could delay the severance of diplomatic relations between
+Chile and Germany, even for a few weeks, it would help Germany and her
+allies to an extent of several millions, and cause damage to her enemies
+to the same amount. As the situation becomes more critical for Germany,
+her propaganda redoubles in intensity. "Public opinion," says Napoleon,
+"is a force invisible, mysterious, irresistible." The Germans recognise
+that force, and have done all that was in their power to sway it to
+their side. German persuasiveness has not wholly failed. But in this war
+of words one decisive word has yet to be spoken, and that word is
+Victory.
+
+Yet military victory is not the final word in the economic struggle nor
+in the propaganda used in its support. The German South American
+Institute urgently emphasises the need of a more thorough and more
+stable system of German news supply: and official steps are now being
+taken in Germany to consolidate and extend such a system, in order to
+provide a permanent support of German influence in the future. The
+present aim of her propaganda is not only to exhibit victories, but to
+prepare for possible defeat, while representing Germany as morally
+invincible and as able, in any event, not only to hold her own, but to
+extend and strengthen her position.
+
+
+
+
+CHAPTER IV
+
+THE RECOGNITION OF LATIN AMERICA
+
+
+It has been necessary to speak at some length of the direction taken by
+German activities with regard to Latin America. In order to preserve due
+perspective, something should be said about activities on the part of
+others. For the German has no monopoly of intelligence and energy in
+these matters. Indeed, the methods of the various German Leagues for
+Latin America mentioned in the second chapter were prompted, in part at
+least, by observation of what was being done elsewhere, particularly in
+France and the United States: for all these matters are carefully
+watched in Germany, and are described in minute detail in the
+publications of those leagues.
+
+An American historian remarks that Europe and the United States have
+lately re-discovered Latin America; and a German observer describes
+South America as the Fair Helen of the business world--her charms
+admired and her favours sought by all industrial nations. These epigrams
+point to a comparatively recent movement, which might be described as
+the Recognition of Latin America. This is not a sudden new departure,
+for relations between those countries and Europe have been continuous.
+But, in the past, there has been much indifference and ignorance
+regarding these matters, except among those directly concerned in them.
+In recent years a fresh spirit has arisen, an enlivened interest and a
+desire for better knowledge and more cordial intercourse. The movement
+is natural and spontaneous rather than official. It owes little--at all
+events in Europe--to governments and chanceries, although these
+recognise its value and give it their countenance.
+
+It was pointed out above that French thought and French example have
+always exercised a profound influence on the Latin-American republics.
+Until recently, this influence made itself felt without much conscious
+observation or deliberate activity on the part of Frenchmen. Indeed,
+there was sometimes a disposition, which was not unknown in England
+also, to view the Latin-American in a satirical light. A changed
+attitude in France--a desire for cordial and equal intercourse--took
+definite shape in the formation of the Comité France-Amérique in 1906
+under the presidency of M. Gabriel Hanotaux. The objects of this society
+are to develop economic, intellectual and artistic relations between
+France and the nations of the New World, to attract students and
+travellers to France from the two Americas and welcome them cordially,
+to encourage every means of making France and America known to one
+another. The society soon numbered over 1000 members, and proceeded to
+found branches in Latin-American capitals, as well as in the United
+States and Canada. It publishes a monthly review entitled
+_France-Amérique_, dealing with every branch of life in the two
+Americas, and has formed a sub-section known as Ligue française de
+propagande, to spread in America a knowledge of French education and
+art, as well as French industrial products. The society has published a
+number of books concerning the history and present conditions of
+American countries.
+
+The same year, 1906, saw the foundation of the Groupement des
+Universités et grandes Écoles de France pour les relations avec
+l'Amérique Latine. This academic association, though it does not ignore
+the business side of foreign relations, is naturally more concerned with
+educational and intellectual matters. Its activities appear in the
+visits of French professors and lecturers to Latin-American capitals,
+the reception of Latin-American students in France, the study of
+Spanish-American history, literature and archaeology in French
+Universities, and in one apparently trivial but very practical
+detail--the reduction by one half of French Steamship Companies' fares
+to Latin-American students visiting France.
+
+The economic side of this French movement appears in the institution of
+a "Latin-American week," a kind of festival for propaganda and
+intercourse, to be celebrated annually in some great business centre of
+France. The inaugural seven days' meeting was held at Lyons in December
+1916. Sixty Latin-American delegates were present, and were met by 200
+French delegates from Paris, among them leading men representing every
+side of French life. The conference discussed every aspect of the
+relations between France and Latin America, and the means of extending
+and improving those relations.
+
+The cordiality of intercourse finds its most pleasant manifestation in
+the frequent visits to South America of distinguished Frenchmen--among
+them have been Anatole France and Clemenceau--who carry messages of
+sympathy across the Atlantic to crowded and enthusiastic gatherings in
+Latin-American cities.
+
+In the United States this double movement, intellectual and economic, is
+still more marked. Latin-American history and economics are regularly
+taught in the universities, and prizes are provided for essays on
+historical works on those lands. Harvard University has a special
+endowment for Latin-American studies, an Instructor in Latin-American
+history and a South American Library of 10,000 volumes; and the
+University, in order to encourage the entry of Latin-American students,
+dispenses with the use of the English language in the Entrance
+Examination in certain cases. The Jesuit traveller, Father Zahm, better
+known by his pen-name of Mozans, has presented his South American
+library to Notre Dame University, Indiana. The Rector of the Leland
+Stanford Junior University places at the disposal of the University his
+library of 7000 volumes on Brazil. Scholarships are granted in the
+Universities to Latin-American women students. In the year 1913,
+Latin-American students in American universities numbered 813. American
+scientific missions are at work in Latin America, as well as missions of
+teachers to study educational methods in those lands and to invite
+return visits to the United States. One hears, moreover, of a
+Spanish-American Athenæum at Washington, 2000 institutions teaching the
+Spanish language, 1700 clubs formed for the study of Latin America, new
+magazines dealing exclusively with those regions, Argentine men of
+letters received with an honoured public welcome, an Inter-American
+Round Table, founded by representative ladies of New York, who propose
+to hold annual meetings of women, to take place successively in the
+capitals of the American Republics.
+
+This educational and social movement accompanies and supports a great
+business effort directed towards Latin America. The latter has an
+obvious bearing on the subject of Pan-Americanism, which is treated in a
+later chapter: but it is convenient to indicate the facts here, as
+forming part of a general movement of approach by other peoples towards
+Latin America. The American business effort assumed concrete form at the
+beginning of the war, when the United States Government invited the
+Finance Ministers and leading bankers of all the American Republics to a
+Financial conference at Washington. All but Mexico and Haiti accepted.
+The conference met in March 1915. A committee was appointed for each
+republic, and their reports were submitted to a joint committee. The
+decisions so reached were unanimously accepted by the whole conference.
+They recommended a standard gold coin for the whole of America, also
+unification of regulations concerning classification of merchandise,
+customs, consular certificates and invoices, trade marks and kindred
+matters. Questions of banking facilities, transport and credit were also
+discussed.
+
+Furthermore, it was decided to institute an International High
+Commission, which should continue permanently the work of the
+conference, sitting in rotation in the capitals of the several
+republics. This commission met first in Buenos Aires in April 1916, and
+decided to create a Central Executive Council to consist of three
+members, namely the chairman, vice-chairman and secretary of the section
+representing whatever country should be at the time the headquarters of
+the High Commission. On the motion of Argentina it was unanimously
+agreed that the headquarters for the first year should be Washington.
+Thus the first Central Executive Council consisted of three North
+Americans, the three heads of the United States section of the
+International High Commission.
+
+During the last three years, North American capital has been poured into
+Latin America, notably into Brazil, although perhaps the most striking
+instance is the acquisition of three huge and profitable mining
+properties in Chile, producing copper and iron. American commissioners
+are studying the field; direct steamship communication between the two
+continents has been extended; and American banks have been opened in
+many South American cities. It is remarkable how large a space is given
+day by day to Latin America in the Daily Commerce Report and List of
+Trade Opportunities published by the United States Bureau of Foreign and
+Domestic Commerce. Meanwhile the Pan-American Union, housed in a
+magnificent palace at Washington, labours unceasingly to draw closer the
+political, economic, social, and intellectual relations.
+
+But in other directions, indeed in all directions, Latin-American
+economic and international relations are opening out and finding new
+roads. Canada has earned a high reputation by her industrial
+enterprises, and Canadian banks are being established in South American
+capitals. The Dutch too are opening banks and preparing to extend their
+trade. Japan, also, is drawing closer to this new Europe of the western
+hemisphere. Japanese immigration is increasing, not only to the
+republics of the Pacific coast, but also to Southern Brazil. The
+Japanese steamship service to the west coast has been extended, and
+lines of Japanese ships are now running, also, to Buenos Aires and Rio.
+Industrial Japan aims at substituting for German trade the production of
+goods formerly imported from Germany, and Japanese pioneers are
+travelling in South America to study and prepare the ground. Japanese
+relations with Chile are particularly close and friendly. Chile can
+supply iron and copper, which Japan wants; and in return Chile is
+prepared to take Japanese cotton and silk. Kaolin or china clay was
+lately discovered in Chile: a specimen was sent to Japan for trial; and,
+as a result, a china factory has been started in Chile, the skilled
+labour being provided by Japanese artisans. Truly, the whole world is
+drawing nearer to South America.
+
+What of the British position? The British "re-discovered" Latin America
+more than a century ago. England, as well as France, was the school of
+Miranda and Bolívar. England provided the sinews of war for the
+emancipation of these lands, and the British legion which served under
+Bolívar was saluted by him, on the battle-field, as _Salvadores de mi
+patria_. South America honours the name of Cochrane among the heroic
+figures which stand upon the threshold of independence: nor has she
+forgotten how Canning's generous statesmanship helped her to secure the
+fruits of victory. One may read, in great part, the history of the
+struggle for independence in Memoirs written by Englishmen who took part
+in it. And in succeeding years the British held in those countries a
+peculiar position of gratitude and respect. The first Argentine foreign
+treaty was with Great Britain. Uruguay owes her independence, in part at
+least, to the intervention of British diplomacy, which was held in equal
+honour at Buenos Aires and in Rio. The founder of the Pacific Steam
+Navigation Company was an American, who, failing to find support in his
+own country, went to England, and there launched his great scheme of
+maritime trade on the Pacific coast. The same American, William
+Wheelwright, was the founder of the Argentine railway system, through
+English capital and enterprise. Over 1000 millions sterling of British
+capital are invested in Latin America in the form of government loans
+and corporate enterprises whose capital can be counted, without
+reckoning private investments, such as ownership of land. Total British
+investments in the Argentine alone exceed 500 millions sterling. The
+British created the Chilian nitrate industry, in which Chilian and
+British ownership are now about equal. Our fathers and grandfathers
+dared much, risked much, lost much and gained much in Latin America, and
+have left us an unrivalled reputation for good work and steady
+integrity. _Palabra de Inglés_, "the word of an Englishman," is still a
+proverb throughout those countries.
+
+Yet there is truth in the remark of a German author that the British
+have made no "cultural efforts" in Latin America. They are viewed with
+respect rather than with an intimate cordiality which they have not
+sought. It has been said that an Argentine takes off his hat to an
+Englishman, but tucks his arm in that of a Frenchman. This absence of
+deliberate effort does not mean the absence of moral influence. An
+official of the Pan-American Union remarked to the present writer that
+the English had done a "wonderful work" in Argentina by introducing and
+spreading the game of football, which had taught lessons of fair play,
+voluntary disciplined combination and good humour in defeat. The Boy
+Scout movement has taken root throughout Latin America, holding up
+everywhere in the spirit of its work and in local Scout papers a high
+standard of honour, truthfulness and conduct. These are some examples of
+a widespread influence exerted by certain sides of English life and
+character. Yet a certain atmosphere of aloofness still envelopes the
+British in Latin America, and this attitude is reflected in England. The
+languages and the history of those lands have not received their due in
+our schools and colleges. It has been comparatively rare to find in this
+country a keen and well-informed interest in matters wherein our own
+people have had a far greater share than our neighbours on the European
+continent or in the United States. What is wanting is a breath of
+enthusiasm for a most picturesque past, a present situation of absorbing
+interest, and the prospect of a future which promises boundless
+possibilities.
+
+Yet the movement of recognition is making way among us. The number of
+descriptive books published in recent years concerning those countries
+points to a reviving interest. Our schools are providing Spanish
+classes: our universities are founding professorships or lectureships in
+the Spanish and Portuguese languages, and the study of Latin-American
+history is finding admission to its due academic place. We are beginning
+to perceive that the life of those countries touches us closely, and
+that some knowledge and thoughtful interest concerning them should be
+part of the mental equipment of an educated Englishman. Moreover, the
+recent establishment of an Anglo-Spanish Society and also of an
+Anglo-Portuguese and Brazilian Society indicates a growing disposition
+for sympathetic and reasonable intercourse with the peoples of the
+Ibero-American lands.
+
+It would be out of place here to talk of this or that defect in British
+business methods or to suggest possible amendments. Such matters may be
+left to business men. Mr Herbert Gibson, in the fascinating address
+which he lately gave in King's College, London, sets the matter on a
+higher plane. "I do not think," he says, "it is so much a question of
+this or that system of weights and measures, or of the insularity of our
+classes of goods, as a question of a more intimate and sympathetic
+understanding between the peoples themselves. Trade can no doubt go on
+without such an understanding; but, where it exists, commercial as well
+as political, social and intellectual relations are strengthened. It
+seems to me that where our relations with South America have weakened or
+at least where they have not progressively increased, is in that
+man-to-man understanding and sympathy that opened the doors of all South
+America to our grandfathers."
+
+
+
+
+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?
+
+
+
+
+CHAPTER VI
+
+PAN-AMERICANISM
+
+
+The relations of Latin America with the United States are chiefly
+connected with those tendencies of United States policy which are
+associated with the name of Monroe. A survey of the Monroe Doctrine
+would here be out of place: but the main points bearing on the present
+situation may be indicated. The injunction imposed in 1823 by President
+Monroe upon European interference in America was intended to meet
+certain European designs which at that time seemed to endanger the
+"peace and safety" of the United States. But Monroe's declaration,
+although its immediate purpose was self-defence, involved a permanent
+protest against any European aggression in Latin America, and thus set
+up the United States as self-constituted champion of those countries.
+Such a position involves a certain superiority of attitude and cannot be
+very clearly distinguished from protection; and protection is apt to
+merge by gradual steps, often only half perceived and not deliberately
+intended, into Protectorate. Thus, the development of the Monroe
+Doctrine has followed two parallel lines of policy, protection against
+Europe and national self-assertion. This latter more positive aspect has
+impressed itself upon the public mind. The advances in the Caribbean
+region, which have been mentioned in the first chapter, were undertaken
+not in order to satisfy any doctrine or theory, but to satisfy the
+irresistible needs of a vigorous growing Power. But since, for a
+generation past, it has been expected of American statesmen that they
+should justify their orthodoxy as adherents of this doctrine, these
+steps towards protectorate or dominion have been explained in a series
+of public pronouncements as developments or examples of the doctrine.
+Naturally, therefore, the term "Monroe Doctrine" is popularly understood
+as connoting an imperial policy, a movement towards supremacy or
+hegemony.
+
+In any case, the obvious comment on the Monroe Doctrine is that it has
+indeed protected the American republics from European aggression, but
+has not protected them from American aggression. It has not protected
+Peru from Chile nor Mexico and Colombia from the United States. Again,
+it is a uni-lateral arrangement announced by one Power alone, on the
+assumption that this action would be taken for granted by the other
+American republics. This attitude does not entirely commend itself to
+those states, especially as they grow stronger and more conscious of
+their strength. American business men plainly assert that the Monroe
+Doctrine is bad for business[4], and warn their countrymen against
+straining after a fictitious inter-American sentiment--an attitude which
+"is often a cause for resentment, the more felt because seldom expressed
+by the courteous Latin[5]." An article in the Pan-American Bulletin for
+December 1917 deserves particular attention. It cleaves through the
+difficulty by declaring, on the authority of Mr Root, that the Monroe
+Doctrine today means no more than what President Monroe meant a century
+ago: "The Monroe Doctrine is an assertion of the right of self-defence,
+that and nothing more. France and Britain are in the field to protect
+their Monroe Doctrine, the sovereignty and independence of Belgium ...
+there is nothing here ... in any way derogatory to the full sovereignty
+and independence of even the smallest of the Latin-American countries.
+It is true that the first proclamation of the Monroe Doctrine carried
+with it an implied offer of aid to the newly liberated Spanish-American
+colonies against proposed aggressions by the Holy Alliance.
+Self-protection was the motive ... it counts for nothing against a set
+purpose to defend one's own house that in so doing one performs an act
+by which one's neighbour is likewise defended." The article concludes by
+declaring that the Monroe Doctrine still prevails, strictly limited to
+its original sense, and that Pan-Americanism is an entirely distinct
+policy, which must not be confused with it.
+
+This re-statement of the Monroe Doctrine in its original terms, this
+declaration that United States policy is just like that of other
+nations, was probably prompted by the sense that the later developments
+of the Monroe Doctrine hindered the economic propaganda which is the
+main business of the Pan-American Union. But it has been further argued
+that the great war has exposed the weakness of Monroism, since, in the
+event of a German victory, nothing but superior force could prevent
+German invasion and occupation in Canada or in any trans-Atlantic
+country which might be at war with Germany. The arming of the United
+States has in some degree answered this objection, which is perhaps as
+contingent and theoretical as the doctrine itself. But the war has
+certainly emphasised the fact that emergencies must be met and settled
+as they arise, and that, since they cannot be foreseen, they cannot be
+covered by pre-conceived theories. At any rate a sentiment has for some
+time been gaining force that the inter-American policy of the United
+States calls for some kind of revision or re-statement; and the solution
+is sought in "Pan-Americanism."
+
+In seeking a definition of that phrase, European analogies will scarcely
+help us. The word "Pan-Germanism" usually implies some common action or
+interest among all those who speak the German language, and suggests
+some kind of racial bond or sense of kindred. The word "Pan-Slavism"
+appears to mean common action or interest among all who speak the Slav
+tongues, and similarly suggests some ethnological bond of kinship.
+Obviously Pan-Americanism must mean something quite different, for the
+American differs from his nearest southern neighbour, the Mexican, more
+widely than the Norwegian differs from the Greek. Moreover,
+"Pan-American" is a term of recent origin and still somewhat fluid in
+its application. It has sometimes been used merely as the equivalent of
+"European" or "Asiatic"; for the word "American" commonly bears a
+national sense and there is no convenient and accepted term covering the
+two Americas. For example, Mr Taft in his Presidential message of 1909
+spoke of "our Pan-American policy" much as a British Prime Minister
+might speak of "our European policy."
+
+Thus, the obvious application of the term is geographical. Yet Americans
+of authority are fully aware of the need of reservation in this
+geographical application. In 1909, the Director of the Pan-American
+Union pointed out, with some mortification, that on the occasion of the
+Pan-American Congress at Buenos Aires, most of the delegates from the
+north found that the easiest route from the chief city of North America
+to the chief city of South America lay through Europe. And an eminent
+American economist[6] has lately uttered a warning against geographical
+misapprehensions, explaining that, whereas the Panamá Canal makes the
+west coast of South America an extension of the east coast of the United
+States, nevertheless the bulk of the South American population lives
+upon the Atlantic coast and prefers its traditional, customary and
+natural intercourse with Europe.
+
+But in considering the meaning of an incipient and growing force, it
+would be a mistake to dwell on possible limitations and difficulties;
+and it would be pedantic and unpractical to demand precise consistency
+or exact definition. We are rather concerned with aspirations,
+tendencies and formative ideas. Indeed, it might fairly be argued that
+these limitations, which are fully realised and avowed in North America,
+are no argument against the Pan-American movement, but rather an
+argument in support of it, as being a prudent and wholesome effort to
+overcome existing obstacles and promote a better understanding between
+neighbours.
+
+Pan-Americanism may be described as the movement which aims at uniting
+all the American republics:--one cannot say all the American countries;
+for in the map printed on the cover of the Pan-American Bulletin, Canada
+is left blank, as not forming part of "Pan-America." This omission alone
+is enough to prove, if proof were needed, that there is something
+artificial about Pan-Americanism: for obviously a New Yorker is more at
+home in Toronto or Halifax than in Rio or Buenos Aires; and there is a
+closer political similarity as well as a closer political bond between
+Washington and Ottawa than between Washington and Caracas. But, after
+all, most political combinations are largely artificial: they are
+products of statesmanship rather than of nature, or at all events they
+are products of nature assisted by statesmanship. And Pan-Americanism
+need not be less real or less valuable for being a construction
+deliberately planned instead of a spontaneous organism. But since the
+Pan-American movement is artificial, and a matter of policy and
+management, still rather formless, Americans of both continents differ
+considerably both as to its meaning and its usefulness, some declaring
+that it means nothing and is useless or even mischievous, while others
+regard it as a kind of perfect circle embracing all the future.
+
+Dr Usher, the American historian, dismisses the whole notion, on the
+ground that the United States and Latin America are utterly unlike,
+unsympathetic and even antipathetic to one another. Against this
+conclusion may be quoted two opinions from Chile and from Colombia, the
+two South American countries which have in the past shown most
+resentment at North American pretensions. "We want no papa" exclaimed a
+Chilian public man some years ago: yet in 1910 Señor Echeverria, Chilian
+consul in London, in a public lecture declared himself a decided
+believer in the benefits of Pan-Americanism, and as disposed to accept
+the sincerity of North American pacific and non-aggressive professions:
+and in the same year Señor Pérez Triana, the Colombian diplomatist,
+expressed a restrained but decided optimism concerning the benefits to
+be derived from the Pan-American Congresses, and pointed out that they
+had already brought about the general acceptance of the principle of
+arbitration among American Governments. These favourable views have
+regard to the practical benefits to be found in a certain course of
+action. The destiny of Pan-Americanism depends on the question whether
+these practical benefits are strong enough to overcome the barriers of
+race, language, religion, law, customs and tradition.
+
+The objections based upon these obstacles to union is not quite
+convincing. Incompatibility of temper is a bar to marriage: it is no bar
+to a practical and thoroughly friendly business understanding supported
+by mutual respect and methods of give and take. The tendencies of the
+age favour large combinations, overstepping the bounds of nationality
+and sometimes cutting across the lines of kindred and tradition. The
+challenge of Central Europe has raised up such a combination in Western
+Europe, and may help to give birth to a fresh and large grouping of the
+Powers of the western hemisphere.
+
+The question occurs whether, apart from reasons of practical
+convenience, any fundamental basis can be found for the union of
+communities so dissimilar in character and in action. These republics
+have this at least in common: they have all started life in "new lands";
+they are all trans-Atlantic offshoots from European monarchies; they
+have all thrown off political dependence upon Europe; they have all
+adopted republican forms of government; and, to whatever extent some of
+them may avoid democratic or even republican methods, they have all
+rejected the hereditary principle in government. Moreover, before the
+present crisis they all cultivated, so far as possible, a certain
+political aloofness from Europe: and they all aim at pursuing a destiny
+distinct from and, in their belief, transcending that of Europe through
+the inexhaustible possibilities offered by a New World.
+
+What success has attended the United States in her recent policy of
+approaching Latin America? Here we are on delicate ground, and whatever
+view be expressed is sure to meet with disagreement on the part of
+qualified judges. It is not easy to keep one's finger on the pulse of
+South American sentiment, nor can we expect to find unanimity. We can
+only watch indications and symptoms. In the past, on the whole, the
+attitude of the United States has been accepted in so far as it implied
+protection; but it has been warmly resented in so far as it seemed to
+imply any kind of protectorate. A certain arrogance in the public
+pretensions of the United States has been felt to be an offence and a
+menace; and this feeling has been intensified by the bearing of
+individual Americans. Yet a representative Chilian, Señor Vildósola,
+writing since the outbreak of the war, says, "The United States was not
+popular in Chile; her political attitude was rude and overbearing (_une
+politique brutale_); but in the past ten years this is changed. The Big
+Stick is relegated to the cellars of the White House. A certain
+refinement of forms has appeared in the Secretaryship of State, and a
+deeper knowledge of the peoples of the continent has induced the
+Government, press and people of the United States to treat Chile and her
+neighbours with a new respect and consideration." It may here be noted
+that Chile has lately entered into close economic relations with the
+United States, through the American acquisition of great mining
+properties in Chile and through the export of nitrate and copper to
+North America, largely carried in Chilian government transports.
+
+A representative Brazilian lately remarked to the present writer, "I
+believe there is no danger at all from the United States" and, referring
+to the preferential tariff granted by Brazil to certain imports from the
+United States, he added, "The Americans admit our coffee free, and we
+grant this abatement in return. They tax imports of things that they
+produce, and admit free the things they cannot produce. You English are
+different. You tax our coffee: you tax things you cannot produce and let
+in free the things you can produce." There can be no doubt that these
+close commercial relations and recent large American investments in
+Brazilian industries conduce to this tentative entente with the United
+States.
+
+The relations of the A.B.C. countries seem to indicate similar
+tendencies. It is probable that the main object, which led these three
+republics to entertain proposals of alliance, was security against
+possible danger from the United States. As these apprehensions
+diminished, the proposals were shelved, and the A.B.C. resolved itself
+into its component alphabet. There was another not less interesting
+reason for this dissolution: the proposed combination of the stronger
+South American states was not welcomed by the other republics, which
+felt that an arrangement of this kind did not favour the union and
+harmony of the whole continent, even though the professed intention was
+that it should serve as a nucleus which might gradually win the
+voluntary adhesion of other republics.
+
+Again, those republics which have been drawn closely under the influence
+of the United States, threw in their lot with her by declaring war
+against Germany--a decision which seems to be an act of gratitude, and a
+recognition that their position of dependence is not felt to be irksome
+or degrading.
+
+A recent act of the small but sturdy Republic of Uruguay seems to be
+very significant. After first severing relations with Germany and then
+rescinding her declaration of neutrality, Uruguay decreed that "No
+American State, if engaged in a war against a European State in defence
+of its rights, shall be treated as a belligerent by Uruguay." There is
+something a little whimsical in this previous sweeping aside of all
+contingencies, and one may imagine circumstances where the
+interpretation of this decree might puzzle the legal advisers of the
+Uruguayan Foreign Office. But the whole-hearted comprehensive intention
+of the decree is obvious. Uruguay is prepared to go the whole way in the
+direction of Pan-Americanism, and opens her arms equally to all the
+republics of both American continents.
+
+The proposal to establish a Pan-American University at Panamá may be
+worth mentioning here. The suggestion sounds like a product of the
+tropical spirit of those regions; but it may yet take significant shape.
+
+The United States, before entering the war, had largely increased her
+trade with Latin America. She succeeded in supplying, in great degree,
+the gaps left by Germany and Great Britain. Her entry into the war has
+deprived her of part of that advantage. But, on the other hand, the
+final decision, the manner in which it was made, and the resolute way in
+which it is being pursued, have vastly strengthened the moral standing
+of the United States in the New World. Those Latin-American states which
+are dependent on her joined her as belligerents. The action of Brazil,
+though taken independently and inspired more by French than by North
+American sympathies, followed North American action and cannot be wholly
+dissociated from it. Most of the Latin-American states, by their
+attitude towards the war, have as it were mounted guard behind the
+Allies. But the United States stands embattled in front of her southern
+neighbours, to fight the monster which threatens them all. The United
+States now, at last, appears, not merely as the theoretic propounder of
+a protection which was really ensured by the assent of Great Britain and
+the strength of the British fleet, but as the active champion in a
+common cause. This position has been strengthened by President Wilson's
+solemn disavowals of any aggressive intention. These promises have
+produced a marked impression in South America.
+
+The war has brought into view another practical reason for a closer
+inter-American understanding. As long as the United States remained
+neutral, no other American state, such as Brazil, could have incurred
+the risk of entering the war. In the past, while South American
+countries were able to keep apart from European politics, this
+complication or hindrance was latent and remote. But the period of
+aloofness is closed, and the American republics are taking their place
+among the nations of the world. Some kind of permanent entente, some
+standing arrangement for exchanging views and adjusting policy, would
+seem to be the best means of obviating any friction or awkwardness
+between north and south in respect of external relations. Thus a closer
+understanding with the United States may be regarded as a necessary
+condition of closer relations with the rest of the world.
+
+Many who know South America well will dissent from the suggestion that
+the war is helping to mould into some kind of shape the rather shadowy
+scheme called Pan-Americanism. They will point to the fact that most
+South Americans would rather have dealings with a European than with a
+North American and will recall what has been said elsewhere, namely,
+that the two Americas, both historically and actually, face severally
+towards Europe and not towards one another. All this is true; yet there
+are signs that the tendency called Pan-Americanism, hitherto a rather
+unsubstantial vision, may become a reality, differing indeed from the
+picture traced by some North American prophets, but resting upon more
+solid bases. We have touched upon business relations and the machinery
+for carrying them on. As to political relations, the growing strength of
+the greater South American republics counts for much. They feel
+themselves to be in a position to say, "We do not want your protection;
+but we value your equal friendship; for we are Americans as well as you.
+And we are willing to group ourselves together for the preservation and
+protection of that America which is ours." An equal understanding
+between equals--provided it is not too formal at first, and is allowed
+to be moulded by the course of events--would probably meet with a fairly
+general assent, which might gradually win over those holding aloof at
+first. Something of the kind seems to be taking form at the present
+time. The ultimate result may be the formation of a Concert of America,
+in which the more tranquil and educated elements may guide the whole.
+President Wilson has suggested some such arrangement, and proposes a
+combination of American republics as the best security against
+aggression by one American Power upon another.
+
+From what has been said above, it is obvious that some of the Caribbean
+lands would enter such a combination as satellites or subject-allies of
+the United States. Such an arrangement is not unparalleled and does not
+seem impracticable, since these small states have already entered the
+war in that capacity. Obviously, Pan-Americanism cannot aim at precise
+symmetry or theoretical consistency. It must be an elastic system, and
+must be prepared to meet and overcome difficulties. That is the purpose
+of its existence. But in general the first condition of a Pan-American
+combination would seem to be the abandonment of any pretensions to
+hegemony by any one state. Such pretensions have shattered the Concert
+of Europe. But America is a younger Europe which may take example--and
+warning too--from that old Europe which has given her such institutions
+and such order as she possesses. Thus a New World may indeed arise to
+redress the balance of the Old.
+
+       *       *       *       *       *
+
+To the emancipation of Latin America Great Britain and the British
+contributed more than any other outside nation. In the subsequent
+development of those countries, Britain has had a large share. In the
+moral protection afforded to them by the attitude of the United States,
+the unostentatious and almost tacit support of Great Britain has counted
+for much. And those countries are now being drawn nearer to Great
+Britain and nearer to Europe than ever before. The question now
+arises:--In the closer grouping of American states now in process of
+formation, is Great Britain to stand aloof, a sympathetic but silent and
+inactive spectator? That this question has actually been raised in the
+United States, is shown by the following quotation from _The Times
+History of the War_ (chapter 222, page 9): "As the _Philadelphia Ledger_
+put it 'it seemed an absurdity to talk of Pan-Americanism and in the
+same breath to ignore the fact that one of the greatest of the American
+Powers is not included in it.' The _New Republic_ went further ...
+'Pan-Americanism,' it declared, 'is a tripod that cannot stand on two
+legs for ever. Only a combination of the Latin countries, the United
+States and Great Britain, that is to say a combination of all the
+American Powers, can make it a safe and useful organization in the world
+to-day.'"
+
+There is nothing new in this idea; for Bolívar, with singular
+magnanimity, invited Great Britain and the Kingdom of the Netherlands to
+send delegates to the Pan-American Congress which he attempted to
+assemble at Panamá in 1826: the circumstances of the time precluded an
+invitation to France. And now that Brazil and Cuba sit at the
+council-board of the Allies in Paris, a conception, which seemed
+feasible a century ago to a great imaginative mind, may perhaps not seem
+so very remote to a practical mind today. For the present epoch has
+brought home to all Americans of both continents a fact which has long
+been known to Canadians and Englishmen, namely that the ocean is no
+estranging gulf between nations. Today it is known that the geographical
+boundary which divides the peoples into two categories and separates the
+Old World of force from the New World of reason is not the Atlantic but
+the Rhine. Thus now, more than ever, does it seem a little incongruous
+that Washington should deny to Ottawa a community of American interests
+which is conceded to Caracas, Asunción and La Paz.
+
+Yet the scheme thus adumbrated is not at the present time clearly in
+sight. The inclusion of Canada would reverse the system which now
+confines Pan-Americanism to those states which have thrown off all
+political connexion with Europe together with all monarchical forms.
+Moreover, new and large combinations must keep within manageable limits.
+Yet it is significant that a Uruguayan public man, Señor Lopez Lomba, is
+now vigorously agitating, in Paris and in South America, for the
+formation of a Pan-Atlantic Union, wherein the three great Atlantic
+Powers, Britain, France and the United States, are to combine with the
+Latin-American states, in order to wield with full effect that economic
+weapon which is to decide the world conflict. A combination formed for
+an immediate purpose may well have further and larger results. It is an
+interesting speculation whether, in some not very remote future, the
+daughter nations of the Iberian Peninsula may not be drawn into a wide
+circle of understanding with Britain and her daughter nations. Thus,
+that grouping of the Latin and the Anglo-Saxon peoples, which has been
+formed under stress of war, might continue its beneficent working
+through generations of peace. Portugal and Brazil, Great Britain and the
+United States stand side by side. Most of the daughter nations of Spain
+have ranged themselves in the same ranks, beside France, their
+intellectual foster-mother. Spain may yet re-discover herself and her
+true place in the comity of nations. At all events it is a great thing
+to have proved that the line dividing freedom from autocracy does not
+divide the peoples of the New World from their mother Europe, or
+preclude the whole of the former from joining any great international
+league such as the future may have in store for succeeding generations.
+
+FOOTNOTES:
+
+[4] Notably an article by Mr Pratt, Chief of the United States Bureau of
+Commerce, in the _Annals of the American Academy of Social and Political
+Science_.
+
+[5] Bulletin of the Pan-American Union, March 1918.
+
+[6] Mr Pepper, former Foreign Trade Adviser to the United States
+Government, writing in the _Annals of the American Academy of Social and
+Political Science_.
+
+
+
+
+LATIN-AMERICAN REPUBLICS
+
+
+DATES OF INDEPENDENCE
+
+The struggle of the Latin-American States for independence, viewed as a
+whole, extended from 1810 to 1824 and was marked by many vicissitudes.
+Buenos Aires, with most of the Argentine Provinces, practically achieved
+independence in 1810, but did not formally proclaim it till 1816.
+Paraguay detached herself both from Spain and from the Argentine
+Provinces in 1811. Spanish authority was overthrown in Montevideo in
+1814; but it was not until 1828 that that city was recognised as capital
+of an independent Republic, now known as the Republic of Uruguay. Chile
+practically achieved independence in 1818. New Granada, Venezuela and
+Quito were successively liberated from the Spaniards in 1819-22; and
+these three countries were united for a few years under the name of
+Colombia: but in 1829-30 this union broke up into the three Republics of
+Venezuela, Ecuador and New Granada (now known as Colombia). In 1824 the
+battle of Ayacucho gave independence to Peru; and the province of Upper
+Peru was formed into the Republic of Bolivia. The Brazilian monarchy
+became independent in 1821, and was converted into a Republic in 1889.
+Mexico became independent in 1821, and adopted Republican forms in 1823.
+The five provinces to the south-east of Mexico united in 1824 to form a
+Federal Republic under the name of Central America; but in 1839 this
+unstable union broke up into the five Republics of Guatemala, Honduras,
+Salvador, Nicaragua and Costa Rica. In consequence of events in France,
+the island of Haiti became independent in 1803; but Spain occupied the
+eastern part, Santo Domingo, in 1806 and held it for 16 years. The
+island formed one state from 1822 to 1844, in which year it was divided
+into the two existing Republics of Santo Domingo and Haiti. Cuba was
+separated from the Spanish monarchy and formed into a Republic in 1899.
+The province of Panamá seceded from Colombia in 1903 and became a
+separate Republic.
+
+       *       *       *       *       *
+
+Since external recognition is an essential condition of complete
+independence, it may here be added that in 1822 the United States
+recognised the independence of Colombia, Chile, Buenos Aires and Mexico;
+and in January 1825 Great Britain recognised the independence of Buenos
+Aires, Colombia and Mexico. This formal recognition was preceded by
+amicable intercourse, by the dispatch of consuls, by relations of a
+commercial and semi-official kind, and by diplomatic action which gave
+countenance and support to the insurgent governments.
+
+
+PRESENT STATUS (AUGUST 1918) AS TOWARDS THE WAR
+
+The following states have declared war with Germany: Brazil, Cuba,
+Panamá, Guatemala, Nicaragua, Costa Rica, Haiti, Honduras.
+
+Uruguay has broken off diplomatic relations with Germany, rescinded her
+edict of neutrality, offered the use of her ports to the warships of the
+Allies, and seized the German ships in her harbours.
+
+Peru has broken off relations with Germany, offered the use of her ports
+to the Allies and seized the German ships at Callao.
+
+Bolivia, Ecuador and Santo Domingo have broken off relations with
+Germany. The exact position of Santo Domingo is not easy to define.
+Since May 1916, the administration of that Republic has been practically
+controlled by the United States; and this intimate connexion with a
+belligerent power may perhaps be regarded as constituting a state of
+belligerency for the Dominican Republic.
+
+Mexico, Salvador, Venezuela, Colombia, Chile, Argentina and Paraguay
+maintain their neutrality and their diplomatic relations with Germany.
+
+
+
+
+    CAMBRIDGE: PRINTED BY
+    J. B. PEACE, M.A.,
+    AT THE UNIVERSITY PRESS
+
+
+
+
+[Illustration: SPANISH & PORTUGUESE SETTLEMENTS IN AMERICA]
+
+[Illustration: THE LATIN-AMERICAN REPUBLICS]
+
+
+       *       *       *       *       *
+
+Transcriber's Notes:
+
+Unusual punctuation and spellings retained when used consistently (for
+example, dispatch and despatch); otherwise changed to majority use, with
+the following exceptions:
+
+P. 24: Greek word transliterated ~apoikia~ appears as Greek script in
+original. See utf8 or html for original script.
+
+P. 76: hyphenated "to-day" retained, as quoted from other print source.
+
+P. 76: "organization" retained, as quoted from other print source.
+
+
+
+
+
+End of Project Gutenberg's South America and the War, by F. A. Kirkpatrick
+
+*** END OF THIS PROJECT GUTENBERG EBOOK SOUTH AMERICA AND THE WAR ***
+
+***** This file should be named 38793-0.txt or 38793-0.zip *****
+This and all associated files of various formats will be found in:
+        https://www.gutenberg.org/3/8/7/9/38793/
+
+Produced by Adrian Mastronardi, JoAnn Greenwood and the
+Online Distributed Proofreading Team at https://www.pgdp.net
+(This file was produced from images generously made
+available by The Internet Archive/American Libraries.)
+
+
+Updated editions will replace the previous one--the old editions
+will be renamed.
+
+Creating the works from public domain print editions means that no
+one owns a United States copyright in these works, so the Foundation
+(and you!) can copy and distribute it in the United States without
+permission and without paying copyright royalties.  Special rules,
+set forth in the General Terms of Use part of this license, apply to
+copying and distributing Project Gutenberg-tm electronic works to
+protect the PROJECT GUTENBERG-tm concept and trademark.  Project
+Gutenberg is a registered trademark, and may not be used if you
+charge for the eBooks, unless you receive specific permission.  If you
+do not charge anything for copies of this eBook, complying with the
+rules is very easy.  You may use this eBook for nearly any purpose
+such as creation of derivative works, reports, performances and
+research.  They may be modified and printed and given away--you may do
+practically ANYTHING with public domain eBooks.  Redistribution is
+subject to the trademark license, especially commercial
+redistribution.
+
+
+
+*** START: FULL LICENSE ***
+
+THE FULL PROJECT GUTENBERG LICENSE
+PLEASE READ THIS BEFORE YOU DISTRIBUTE OR USE THIS WORK
+
+To protect the Project Gutenberg-tm mission of promoting the free
+distribution of electronic works, by using or distributing this work
+(or any other work associated in any way with the phrase "Project
+Gutenberg"), you agree to comply with all the terms of the Full Project
+Gutenberg-tm License (available with this file or online at
+https://gutenberg.org/license).
+
+
+Section 1.  General Terms of Use and Redistributing Project Gutenberg-tm
+electronic works
+
+1.A.  By reading or using any part of this Project Gutenberg-tm
+electronic work, you indicate that you have read, understand, agree to
+and accept all the terms of this license and intellectual property
+(trademark/copyright) agreement.  If you do not agree to abide by all
+the terms of this agreement, you must cease using and return or destroy
+all copies of Project Gutenberg-tm electronic works in your possession.
+If you paid a fee for obtaining a copy of or access to a Project
+Gutenberg-tm electronic work and you do not agree to be bound by the
+terms of this agreement, you may obtain a refund from the person or
+entity to whom you paid the fee as set forth in paragraph 1.E.8.
+
+1.B.  "Project Gutenberg" is a registered trademark.  It may only be
+used on or associated in any way with an electronic work by people who
+agree to be bound by the terms of this agreement.  There are a few
+things that you can do with most Project Gutenberg-tm electronic works
+even without complying with the full terms of this agreement.  See
+paragraph 1.C below.  There are a lot of things you can do with Project
+Gutenberg-tm electronic works if you follow the terms of this agreement
+and help preserve free future access to Project Gutenberg-tm electronic
+works.  See paragraph 1.E below.
+
+1.C.  The Project Gutenberg Literary Archive Foundation ("the Foundation"
+or PGLAF), owns a compilation copyright in the collection of Project
+Gutenberg-tm electronic works.  Nearly all the individual works in the
+collection are in the public domain in the United States.  If an
+individual work is in the public domain in the United States and you are
+located in the United States, we do not claim a right to prevent you from
+copying, distributing, performing, displaying or creating derivative
+works based on the work as long as all references to Project Gutenberg
+are removed.  Of course, we hope that you will support the Project
+Gutenberg-tm mission of promoting free access to electronic works by
+freely sharing Project Gutenberg-tm works in compliance with the terms of
+this agreement for keeping the Project Gutenberg-tm name associated with
+the work.  You can easily comply with the terms of this agreement by
+keeping this work in the same format with its attached full Project
+Gutenberg-tm License when you share it without charge with others.
+
+1.D.  The copyright laws of the place where you are located also govern
+what you can do with this work.  Copyright laws in most countries are in
+a constant state of change.  If you are outside the United States, check
+the laws of your country in addition to the terms of this agreement
+before downloading, copying, displaying, performing, distributing or
+creating derivative works based on this work or any other Project
+Gutenberg-tm work.  The Foundation makes no representations concerning
+the copyright status of any work in any country outside the United
+States.
+
+1.E.  Unless you have removed all references to Project Gutenberg:
+
+1.E.1.  The following sentence, with active links to, or other immediate
+access to, the full Project Gutenberg-tm License must appear prominently
+whenever any copy of a Project Gutenberg-tm work (any work on which the
+phrase "Project Gutenberg" appears, or with which the phrase "Project
+Gutenberg" is associated) is accessed, displayed, performed, viewed,
+copied or distributed:
+
+This eBook is for the use of anyone anywhere at no cost and with
+almost no restrictions whatsoever.  You may copy it, give it away or
+re-use it under the terms of the Project Gutenberg License included
+with this eBook or online at www.gutenberg.org
+
+1.E.2.  If an individual Project Gutenberg-tm electronic work is derived
+from the public domain (does not contain a notice indicating that it is
+posted with permission of the copyright holder), the work can be copied
+and distributed to anyone in the United States without paying any fees
+or charges.  If you are redistributing or providing access to a work
+with the phrase "Project Gutenberg" associated with or appearing on the
+work, you must comply either with the requirements of paragraphs 1.E.1
+through 1.E.7 or obtain permission for the use of the work and the
+Project Gutenberg-tm trademark as set forth in paragraphs 1.E.8 or
+1.E.9.
+
+1.E.3.  If an individual Project Gutenberg-tm electronic work is posted
+with the permission of the copyright holder, your use and distribution
+must comply with both paragraphs 1.E.1 through 1.E.7 and any additional
+terms imposed by the copyright holder.  Additional terms will be linked
+to the Project Gutenberg-tm License for all works posted with the
+permission of the copyright holder found at the beginning of this work.
+
+1.E.4.  Do not unlink or detach or remove the full Project Gutenberg-tm
+License terms from this work, or any files containing a part of this
+work or any other work associated with Project Gutenberg-tm.
+
+1.E.5.  Do not copy, display, perform, distribute or redistribute this
+electronic work, or any part of this electronic work, without
+prominently displaying the sentence set forth in paragraph 1.E.1 with
+active links or immediate access to the full terms of the Project
+Gutenberg-tm License.
+
+1.E.6.  You may convert to and distribute this work in any binary,
+compressed, marked up, nonproprietary or proprietary form, including any
+word processing or hypertext form.  However, if you provide access to or
+distribute copies of a Project Gutenberg-tm work in a format other than
+"Plain Vanilla ASCII" or other format used in the official version
+posted on the official Project Gutenberg-tm web site (www.gutenberg.org),
+you must, at no additional cost, fee or expense to the user, provide a
+copy, a means of exporting a copy, or a means of obtaining a copy upon
+request, of the work in its original "Plain Vanilla ASCII" or other
+form.  Any alternate format must include the full Project Gutenberg-tm
+License as specified in paragraph 1.E.1.
+
+1.E.7.  Do not charge a fee for access to, viewing, displaying,
+performing, copying or distributing any Project Gutenberg-tm works
+unless you comply with paragraph 1.E.8 or 1.E.9.
+
+1.E.8.  You may charge a reasonable fee for copies of or providing
+access to or distributing Project Gutenberg-tm electronic works provided
+that
+
+- You pay a royalty fee of 20% of the gross profits you derive from
+     the use of Project Gutenberg-tm works calculated using the method
+     you already use to calculate your applicable taxes.  The fee is
+     owed to the owner of the Project Gutenberg-tm trademark, but he
+     has agreed to donate royalties under this paragraph to the
+     Project Gutenberg Literary Archive Foundation.  Royalty payments
+     must be paid within 60 days following each date on which you
+     prepare (or are legally required to prepare) your periodic tax
+     returns.  Royalty payments should be clearly marked as such and
+     sent to the Project Gutenberg Literary Archive Foundation at the
+     address specified in Section 4, "Information about donations to
+     the Project Gutenberg Literary Archive Foundation."
+
+- You provide a full refund of any money paid by a user who notifies
+     you in writing (or by e-mail) within 30 days of receipt that s/he
+     does not agree to the terms of the full Project Gutenberg-tm
+     License.  You must require such a user to return or
+     destroy all copies of the works possessed in a physical medium
+     and discontinue all use of and all access to other copies of
+     Project Gutenberg-tm works.
+
+- You provide, in accordance with paragraph 1.F.3, a full refund of any
+     money paid for a work or a replacement copy, if a defect in the
+     electronic work is discovered and reported to you within 90 days
+     of receipt of the work.
+
+- You comply with all other terms of this agreement for free
+     distribution of Project Gutenberg-tm works.
+
+1.E.9.  If you wish to charge a fee or distribute a Project Gutenberg-tm
+electronic work or group of works on different terms than are set
+forth in this agreement, you must obtain permission in writing from
+both the Project Gutenberg Literary Archive Foundation and Michael
+Hart, the owner of the Project Gutenberg-tm trademark.  Contact the
+Foundation as set forth in Section 3 below.
+
+1.F.
+
+1.F.1.  Project Gutenberg volunteers and employees expend considerable
+effort to identify, do copyright research on, transcribe and proofread
+public domain works in creating the Project Gutenberg-tm
+collection.  Despite these efforts, Project Gutenberg-tm electronic
+works, and the medium on which they may be stored, may contain
+"Defects," such as, but not limited to, incomplete, inaccurate or
+corrupt data, transcription errors, a copyright or other intellectual
+property infringement, a defective or damaged disk or other medium, a
+computer virus, or computer codes that damage or cannot be read by
+your equipment.
+
+1.F.2.  LIMITED WARRANTY, DISCLAIMER OF DAMAGES - Except for the "Right
+of Replacement or Refund" described in paragraph 1.F.3, the Project
+Gutenberg Literary Archive Foundation, the owner of the Project
+Gutenberg-tm trademark, and any other party distributing a Project
+Gutenberg-tm electronic work under this agreement, disclaim all
+liability to you for damages, costs and expenses, including legal
+fees.  YOU AGREE THAT YOU HAVE NO REMEDIES FOR NEGLIGENCE, STRICT
+LIABILITY, BREACH OF WARRANTY OR BREACH OF CONTRACT EXCEPT THOSE
+PROVIDED IN PARAGRAPH 1.F.3.  YOU AGREE THAT THE FOUNDATION, THE
+TRADEMARK OWNER, AND ANY DISTRIBUTOR UNDER THIS AGREEMENT WILL NOT BE
+LIABLE TO YOU FOR ACTUAL, DIRECT, INDIRECT, CONSEQUENTIAL, PUNITIVE OR
+INCIDENTAL DAMAGES EVEN IF YOU GIVE NOTICE OF THE POSSIBILITY OF SUCH
+DAMAGE.
+
+1.F.3.  LIMITED RIGHT OF REPLACEMENT OR REFUND - If you discover a
+defect in this electronic work within 90 days of receiving it, you can
+receive a refund of the money (if any) you paid for it by sending a
+written explanation to the person you received the work from.  If you
+received the work on a physical medium, you must return the medium with
+your written explanation.  The person or entity that provided you with
+the defective work may elect to provide a replacement copy in lieu of a
+refund.  If you received the work electronically, the person or entity
+providing it to you may choose to give you a second opportunity to
+receive the work electronically in lieu of a refund.  If the second copy
+is also defective, you may demand a refund in writing without further
+opportunities to fix the problem.
+
+1.F.4.  Except for the limited right of replacement or refund set forth
+in paragraph 1.F.3, this work is provided to you 'AS-IS' WITH NO OTHER
+WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO
+WARRANTIES OF MERCHANTIBILITY OR FITNESS FOR ANY PURPOSE.
+
+1.F.5.  Some states do not allow disclaimers of certain implied
+warranties or the exclusion or limitation of certain types of damages.
+If any disclaimer or limitation set forth in this agreement violates the
+law of the state applicable to this agreement, the agreement shall be
+interpreted to make the maximum disclaimer or limitation permitted by
+the applicable state law.  The invalidity or unenforceability of any
+provision of this agreement shall not void the remaining provisions.
+
+1.F.6.  INDEMNITY - You agree to indemnify and hold the Foundation, the
+trademark owner, any agent or employee of the Foundation, anyone
+providing copies of Project Gutenberg-tm electronic works in accordance
+with this agreement, and any volunteers associated with the production,
+promotion and distribution of Project Gutenberg-tm electronic works,
+harmless from all liability, costs and expenses, including legal fees,
+that arise directly or indirectly from any of the following which you do
+or cause to occur: (a) distribution of this or any Project Gutenberg-tm
+work, (b) alteration, modification, or additions or deletions to any
+Project Gutenberg-tm work, and (c) any Defect you cause.
+
+
+Section  2.  Information about the Mission of Project Gutenberg-tm
+
+Project Gutenberg-tm is synonymous with the free distribution of
+electronic works in formats readable by the widest variety of computers
+including obsolete, old, middle-aged and new computers.  It exists
+because of the efforts of hundreds of volunteers and donations from
+people in all walks of life.
+
+Volunteers and financial support to provide volunteers with the
+assistance they need are critical to reaching Project Gutenberg-tm's
+goals and ensuring that the Project Gutenberg-tm collection will
+remain freely available for generations to come.  In 2001, the Project
+Gutenberg Literary Archive Foundation was created to provide a secure
+and permanent future for Project Gutenberg-tm and future generations.
+To learn more about the Project Gutenberg Literary Archive Foundation
+and how your efforts and donations can help, see Sections 3 and 4
+and the Foundation web page at https://www.pglaf.org.
+
+
+Section 3.  Information about the Project Gutenberg Literary Archive
+Foundation
+
+The Project Gutenberg Literary Archive Foundation is a non profit
+501(c)(3) educational corporation organized under the laws of the
+state of Mississippi and granted tax exempt status by the Internal
+Revenue Service.  The Foundation's EIN or federal tax identification
+number is 64-6221541.  Its 501(c)(3) letter is posted at
+https://pglaf.org/fundraising.  Contributions to the Project Gutenberg
+Literary Archive Foundation are tax deductible to the full extent
+permitted by U.S. federal laws and your state's laws.
+
+The Foundation's principal office is located at 4557 Melan Dr. S.
+Fairbanks, AK, 99712., but its volunteers and employees are scattered
+throughout numerous locations.  Its business office is located at
+809 North 1500 West, Salt Lake City, UT 84116, (801) 596-1887, email
+business@pglaf.org.  Email contact links and up to date contact
+information can be found at the Foundation's web site and official
+page at https://pglaf.org
+
+For additional contact information:
+     Dr. Gregory B. Newby
+     Chief Executive and Director
+     gbnewby@pglaf.org
+
+
+Section 4.  Information about Donations to the Project Gutenberg
+Literary Archive Foundation
+
+Project Gutenberg-tm depends upon and cannot survive without wide
+spread public support and donations to carry out its mission of
+increasing the number of public domain and licensed works that can be
+freely distributed in machine readable form accessible by the widest
+array of equipment including outdated equipment.  Many small donations
+($1 to $5,000) are particularly important to maintaining tax exempt
+status with the IRS.
+
+The Foundation is committed to complying with the laws regulating
+charities and charitable donations in all 50 states of the United
+States.  Compliance requirements are not uniform and it takes a
+considerable effort, much paperwork and many fees to meet and keep up
+with these requirements.  We do not solicit donations in locations
+where we have not received written confirmation of compliance.  To
+SEND DONATIONS or determine the status of compliance for any
+particular state visit https://pglaf.org
+
+While we cannot and do not solicit contributions from states where we
+have not met the solicitation requirements, we know of no prohibition
+against accepting unsolicited donations from donors in such states who
+approach us with offers to donate.
+
+International donations are gratefully accepted, but we cannot make
+any statements concerning tax treatment of donations received from
+outside the United States.  U.S. laws alone swamp our small staff.
+
+Please check the Project Gutenberg Web pages for current donation
+methods and addresses.  Donations are accepted in a number of other
+ways including including checks, online payments and credit card
+donations.  To donate, please visit: https://pglaf.org/donate
+
+
+Section 5.  General Information About Project Gutenberg-tm electronic
+works.
+
+Professor Michael S. Hart was the originator of the Project Gutenberg-tm
+concept of a library of electronic works that could be freely shared
+with anyone.  For thirty years, he produced and distributed Project
+Gutenberg-tm eBooks with only a loose network of volunteer support.
+
+
+Project Gutenberg-tm eBooks are often created from several printed
+editions, all of which are confirmed as Public Domain in the U.S.
+unless a copyright notice is included.  Thus, we do not necessarily
+keep eBooks in compliance with any particular paper edition.
+
+
+Most people start at our Web site which has the main PG search facility:
+
+     https://www.gutenberg.org
+
+This Web site includes information about Project Gutenberg-tm,
+including how to make donations to the Project Gutenberg Literary
+Archive Foundation, how to help produce our new eBooks, and how to
+subscribe to our email newsletter to hear about new eBooks.
diff --git a/38793-0.zip b/38793-0.zip
new file mode 100644
index 0000000..6461279
--- /dev/null
+++ b/38793-0.zip
diff --git a/38793-8.txt b/38793-8.txt
new file mode 100644
index 0000000..32d46f1
--- /dev/null
+++ b/38793-8.txt
@@ -0,0 +1,3315 @@
+Project Gutenberg's South America and the War, by F. A. Kirkpatrick
+
+This eBook is for the use of anyone anywhere at no cost and with
+almost no restrictions whatsoever.  You may copy it, give it away or
+re-use it under the terms of the Project Gutenberg License included
+with this eBook or online at www.gutenberg.org
+
+
+Title: South America and the War
+
+Author: F. A. Kirkpatrick
+
+Release Date: February 9, 2012 [EBook #38793]
+
+Language: English
+
+Character set encoding: ISO-8859-1
+
+*** START OF THIS PROJECT GUTENBERG EBOOK SOUTH AMERICA AND THE WAR ***
+
+
+
+
+Produced by Adrian Mastronardi, JoAnn Greenwood and the
+Online Distributed Proofreading Team at https://www.pgdp.net
+(This file was produced from images generously made
+available by The Internet Archive/American Libraries.)
+
+
+
+
+
+
+
+
+
+
+    SOUTH AMERICA AND
+    THE WAR
+
+    BEING THE SUBSTANCE OF
+    A COURSE OF LECTURES DELIVERED IN
+    THE UNIVERSITY OF LONDON, KING'S COLLEGE
+    UNDER THE TOOKE TRUST
+    IN THE LENT TERM
+    1918
+
+
+    BY
+
+    F. A. KIRKPATRICK, M.A.
+
+
+    CAMBRIDGE
+    AT THE UNIVERSITY PRESS
+    1918
+
+
+
+
+PREFACE
+
+
+This little book contains the substance, revised and adapted for
+publication, of lectures given in the Lent Term, 1918, at King's
+College, London, under the Tooke Trust for providing lectures on
+economic subjects. The course of lectures was in the first instance an
+endeavour to perform a war-service by drawing attention to the activity
+of the Germans in Latin America, and particularly to the ingenuity and
+tenacity of their efforts to hold their economic ground during the war,
+with a view to extending it after the conclusion of peace. A second
+object was to examine more generally the bearings of the war on those
+countries, and the influence of the present crisis on their development
+and status in the world.
+
+These two topics, though closely connected, are distinct. The first has
+an immediate and present importance, the second has a wider historic
+significance. The logical connexion between them may not seem obvious.
+Yet the first enquiry, concerning German war-efforts in Latin America,
+naturally and inevitably led to the second, concerning the larger issues
+involved. The former topic is treated in Chapters I, II and III, the
+latter in Chapters IV, V and VI. The term "South America" is used in the
+title of this book as a matter of customary convenience; but it is not
+meant to exclude the Antillean Republics or the Latin-American States
+stretching to the North-west of the Isthmus of Panamá.
+
+Clearly, an essay of this kind, if it was to be of any use, had to be
+produced quickly. It was impossible to wait in hopes of achieving some
+kind of completeness. The immediate and urgent importance of the subject
+has been signally emphasised by the despatch of a special British
+Diplomatic Mission to the Latin-American Republics, and by the King's
+message addressed to British subjects in Latin America, in order to
+inculcate the spirit of collective effort.
+
+In the course of this essay frequent mention is made of the struggle for
+emancipation, of the part which Englishmen took in that struggle and of
+the great services rendered to the cause of independence by the action
+of British statesmen, notably Canning. In a book which aims mainly at a
+review of present conditions, it is impossible to enlarge upon these
+topics, since their adequate treatment would involve some consideration
+of political action on the European Continent and in the United States.
+But since this passage of past history bears closely on the present
+topic, it may be here mentioned that a brief account of these matters is
+given in the _Cambridge Modern History_, vol. X, chap. IX.
+
+The subject of German "peaceful penetration," which is incidentally
+illustrated but not expounded in these chapters, may be studied in M.
+Hauser's book entitled (in its English version) _Germany's Economic Grip
+upon the World_; also in _The Bloodless War_, translated from the
+Italian of Signor Ezio Gray. The character of that penetration, with its
+admirable as well as its odious features, is briefly and clearly set
+forth in a recent Report (Cd 9059) presented to the Board of Trade on
+enemy interests in British trade.
+
+I desire to express my indebtedness to _Le Brésil_, a weekly review of
+Latin-American affairs published in Paris; to _The Times_ newspaper,
+particularly the monthly _Trade Supplement_ and the South American
+number (Part 183) of _The Times History of the War_; to the weekly
+_South American Journal_; and to the monthly _British and Latin-American
+Trade Gazette_. The quotation on pages 40-41 is taken from _The Times_;
+and various other passages, not always verbally reproduced, are derived
+from the same source.
+
+It is impossible to thank by name all those who have placed at my
+disposal their knowledge of Latin-American countries. But I owe an
+especial debt of gratitude to the Master of Peterhouse for his aid and
+advice in the production of this book.
+
+The original matter has been considerably rearranged for purposes of
+publication. But wherever convenience permitted, the lecture form has
+been retained in order to indicate that the book owes its inception to
+King's College, London.
+
+                                                    F. A. K.
+
+    _August 15, 1918._
+
+
+
+
+CONTENTS
+
+
+                                                 PAGE
+
+    PREFACE                                         V
+
+    INTRODUCTION--GENERAL CONDITIONS IN
+    LATIN AMERICA                                   1
+
+    CHAP.
+
+    I.   POLITICAL CURRENTS AND FORCES             14
+
+    II.  THE GERMAN OUTLOOK ON LATIN AMERICA       25
+
+    III. THE ECONOMIC WAR AND ITS PROPAGANDA       34
+
+    IV.  THE RECOGNITION OF LATIN AMERICA          45
+
+    V.   EFFECTS OF THE WAR ON THE REPUBLICS       53
+
+    VI.  PAN-AMERICANISM                           66
+
+         LATIN-AMERICAN REPUBLICS                  78
+
+     The map at the end of the book shows the former Spanish and
+     Portuguese possessions in America, and also the existing
+     Latin-American Republics.
+
+
+
+
+SOUTH AMERICA AND THE WAR
+
+
+
+
+INTRODUCTION
+
+GENERAL CONDITIONS IN LATIN AMERICA
+
+
+The New World or Western Hemisphere consists of two continents. The
+greater part of the northern continent is occupied by two great Powers,
+which may be described as mainly Anglo-Saxon in origin and character.
+One of them, the Canadian Federation, is a monarchy, covering the
+northern part of the continent. The other, a republic, the United
+States, occupies the middle part. To the south and south-east of these
+two extensive and powerful countries stretch the twenty republics,
+mainly Iberian in origin and character, which constitute Latin America.
+These lands cover an area which is about twice the size of Europe or
+three times the size of the United States. Their population approaches
+eighty millions. Latin America, extending as it does through every
+habitable latitude from the north temperate zone to the Antarctic seas,
+possesses every climate and every variety of soil, and accordingly
+yields, or can be made to yield, all the vegetable and animal products
+of the whole world. Moreover, most of the republics also severally
+contain territory of every habitable altitude, so that a man can change
+his climate from torrid to temperate and from temperate to frigid simply
+by walking up-hill. Thus, equatorial lands can produce within the range
+of a few miles all the products of every zone. Most of the republics
+also furnish an abundance and variety of mineral products. The name
+Costa Rica, or Coast of Riches, which was given by the early discoverers
+to a small strip of the mainland, was prophetic of all its shores. And
+the fable of El Dorado, concerning its interior wealth, has proved to be
+not fabulous but only allegorical.
+
+
+_Geographical Grouping_
+
+The geographical distribution of these republics should be indicated.
+Three of them are island states of the Caribbean Sea. Cuba is the
+largest of the Antilles; Santo Domingo and Haiti divide between them the
+next largest. The rich tropical fertility of these West Indian isles has
+been a proverb for centuries and need not here be emphasised. Upon the
+mainland, the vast territory of Mexico and the five Central-American
+republics may be grouped together, forming as they do a kind of
+sub-continent, a narrowed continuation of North America. Through this
+region a broad mountain-mass curves from north-west to south-east. This
+configuration provides the characteristics and the varied products of
+every zone upon the same parallel of latitude: the torrid coastal
+strips, bordering both oceans; the beautiful, wholesome and productive
+region of the central plateau and long upland valleys; and finally the
+chilly inhospitable regions of the mountain heights. The long sweep of
+the country south-eastwards through the tropics also provides a wide
+range of character, from the cattle-rearing plains of Northern Mexico to
+the coffee and banana plantations of Costa Rica. Nowhere are lands of
+richer possibilities to be found.
+
+The small newly-created Republic of Panamá completes this northern
+system of Latin-American countries. Thus, before coming to South America
+at all, we count ten Latin-American states, three in the Antilles, seven
+upon the mainland.
+
+The other ten republics lie within the continent of South America. That
+continent is shaped by nature in lines of a vast and imposing
+simplicity, so that it is possible to sketch its main features in a few
+words. It is divided broadly into mountain, forest and plain--the
+immense chain of the Andes, the vast Amazonian forests, the
+wide-stretching plains of the Pampa, and the colossal water system of
+the three rivers, Orinoco, Amazon, La Plata. The dominating element is
+the great backbone, the cordillera of the Andes. From the southern
+islands of Tierra del Fuego this cordillera stretches for 4000 miles
+along the Pacific coast to the northern peninsulas of the Spanish Main,
+and thence throws out a great eastward curve along the southern shore
+of the Caribbean Sea. This continuous mountain-wall, clinging closely to
+the Pacific coast, determines the whole character of the continent. In
+the tropical zone, the trade winds, blowing continually from the
+Atlantic, sweep across South America until they strike this towering
+mountain barrier. Then they shed their moisture on its eastern slopes,
+which give birth to the multitudinous upper waters of the Orinoco, the
+Amazon and the western affluents of the River Plate. The Amazon rather
+resembles a slowly moving inland sea, its twelve principal tributaries
+all surpassing the measure of European rivers. The River Plate pours
+into the ocean more water than all the rivers of Europe put together.
+The Orinoco, shorter but not less voluminous, drains a vast area with
+its 400 tributaries.
+
+But the Andes, whose forest-clad eastern slopes pour these immeasurable
+water-floods across the whole continent to the Atlantic, oppose to the
+Pacific, in the southern tropics, a bare dry wall of rock and yellow
+sand. In the north, _the garrua_, the winter mist of equatorial Peru,
+supplies moisture for cultivation. South of this region, the rainless
+desert stretches, a ribbon-like strip, between the mountains and the
+sea. Here, except in some transverse river-valleys, not a blade of grass
+can grow for over a thousand miles. Yet it is this very barrenness which
+has produced the materials of fertility for other lands in the form of
+guano and nitrate deposits. Far to the south, in the "roaring forties,"
+these conditions are reversed. Here, moisture-laden winds blow
+continually and stormily from the Pacific, feeding the dense and soaking
+forests of southern Chile. In the same latitudes, to the east of the
+Andes the terraced plains of Patagonia supply sheep pasture, thinly
+nourished by slight rainfall, although, over so vast an extent, these
+flocks amount to many millions. In the more temperate regions, between
+these zones of climatic extremes, more normal conditions prevail. On one
+side of the Andes are the rich valleys of Central Chile, on the other
+side the wide plains of the Argentine Pampa, formerly given over to
+pasture, now producing wheat, maize, flax, barley and oats as well as
+meat, hides and wool.
+
+South America has been called the fertile continent. Considering that
+most of the land lies within the tropics, it might be called the
+habitable continent--habitable in comfort and health by white men. In
+form, the continent may be roughly compared with Africa, but the
+comparison is in favour of South America. The traveller who has sailed
+along the east or west coast of tropical Africa meets a contrast on
+crossing the Atlantic. Along the Brazilian coast, he finds a succession
+of busy ports, crowded with the shipping of all nations--flourishing and
+growing cities, inhabited largely by Europeans living the normal life of
+Europe. The perennial trade winds, blowing from the sea, bring coolness
+and health; and, almost everywhere, the worker in the ports may make his
+home upon neighbouring hills. On the west coast, tropical conditions are
+even more striking. Here, a soft south wind blows continually from
+cooler airs, and the Antarctic current flowing northwards refreshes all
+the coast. At Lima, twelve degrees from the Line, one may wear European
+dress at midsummer and, descending a few miles to the coast, may plunge
+into a sea which is almost too cold. Moreover, in these regions the
+Andine valleys offer every climate, and a short journey from the coast
+leads one to uplands resembling southern Europe. Higher yet, beyond the
+first or western chain of the Andes stretches the vast and lofty plateau
+enclosed between the double or triple ranges of volcanic mountains. The
+western part of Bolivia, though tropical in situation, is a temperate
+land, lying as it does at a height of above 12,000 feet. This broad
+Bolivian plateau narrows northwards through Peru and finally contracts
+into the Ecuadorian "avenue of volcanoes." Here, in the very central
+torrid zone, a double line of towering peaks shoot their fires far above
+plains and slopes of perpetual snow. Thence the cordillera opens out
+northwards into the broad triple range of Colombia, which encloses wide
+river valleys of extraordinary richness and fertile savannahs, enjoying
+perpetual spring.
+
+Lastly, it should be noted that some of the best part of South America
+begins where Africa ends. Buenos Aires, Montevideo, Capetown and Sydney
+lie approximately in the same latitude, about 34° or 35° south. But some
+of the best parts of Chile and Argentina stretch far to the south of
+this latitude. Alone of the southern continents, South America thrusts
+itself far through the cool regions of the temperate zone.
+
+Hitherto, white settlement in South America has, in the main, followed
+the easiest lines, along the coast, upon the southern plains and up the
+river courses. Of the three great rivers, the Orinoco is the least
+developed, partly owing to natural difficulties--namely, an uneven
+shifting bed and great differences of water level--partly owing to
+artificial and political conditions; but in the wet season its waters
+admit navigation up the main stream and its principal western affluent,
+the Apure, almost to the foothills of the Colombian Andes; and the trade
+winds, blowing upstream, carry sailing craft half across the continent.
+Upon the Amazon system, Manaos, one of the great ports of Brazil, is 900
+miles from the sea: Iquitos, 2300 miles from salt water, is accessible
+to the smaller class of ocean steamers. Upon the Paraná, 1000 miles from
+the ocean, stands the port of Asunción, capital of Paraguay, accessible
+to ocean ships of shallow draught and to large river steamers:
+stern-wheel steamers can mount the Paraguay River 1000 miles farther to
+the remote Brazilian port of Cuyabá.
+
+The navigation of both these river systems, the Amazon and the River
+Plate, is limited or rather interrupted by the fourth great feature of
+the continent, the Brazilian plateau. The Paraná and its affluents
+plunge from this plateau to the southern plain in tremendous waterfalls.
+The southern tributaries of the Amazon pierce their way down into the
+Amazonian valley along defiles, cataracts and rapids sometimes extending
+scores of miles. The Amazonian affluents are mostly navigable from the
+main river to the foot of these cascades. Above the cascades, there
+stretch fresh reaches of navigable water, providing many paths into the
+far interior. Similar conditions are found on the two branches of the
+River Tocantins and on other Brazilian rivers, such as the São Francisco
+and the Paranahyba. With the future growth of population, the
+construction of lateral railways and, later, perhaps the partial
+canalisation of rivers, there is no limit to the possibilities of
+internal water communication. The wealth of water power which awaits
+application is obvious. As to possibilities of water storage and
+irrigation, it suffices to say that on the Lower Orinoco and also on the
+Lower Amazon the difference of water level between wet and dry seasons
+is at least fifty feet, and most of the affluents rise and fall
+proportionately.
+
+The great Brazilian plateau, which has just been mentioned, further
+justifies the description of South America as the fertile continent--the
+region of habitable tropics. The vast scale of this plateau and its
+relation to the River Plate system justify its description here as a
+continental feature rather than a purely national feature, although it
+is mainly a national possession of Brazil. From the north-east shoulder
+of the Brazilian coast, this varied plateau, seamed by many clefts,
+stretches southwards and south-westward in a vast semi-circular sweep
+dividing the two river-systems. The Paraná and its affluents plunge from
+this plateau towards the south and west. Northwards and eastwards it
+sends a multitude of streams to the Amazon and the Atlantic. These
+Brazilian uplands naturally vary in character and productiveness, but
+they are in great part suitable for white habitation and especially for
+the grazing of cattle. There is no winter; there is little of excessive
+or torrid heat; the grass grows all the year round; and in the
+neighbourhood of some rivers, the grasslands are annually renovated by
+seasonable and shallow floods.
+
+
+_Political Distribution_
+
+Among the republics, the United States of Brazil stand in a class apart,
+by virtue of the Portuguese origin and character of that country, its
+very distinct history and its immense size, occupying, as it does, more
+than half the continent. As to the republics of Spanish origin, no
+single classification suffices. The most obvious division is that which
+groups them into tropical and temperate countries. The five republics of
+Venezuela, Colombia, Ecuador, Peru and Bolivia, which lie wholly within
+the tropics, form a group of states which were closely connected in the
+early history of emancipation and which are still marked by a general
+though not very close similarity in respect of geography and
+ethnological conditions. Chile and Argentina lie mainly in the
+temperate zone; Uruguay wholly so; and these, with the southern parts of
+Brazil, are the regions most obviously suitable for white settlement.
+These three southern republics may also be described as the most
+European part of the continent, whereas the five tropical republics have
+a large admixture of indigenous, and, in parts, also of negro, blood.
+
+The small sub-tropical republic of Paraguay, secluded in the interior of
+the continent, does not quite fall into either group, but belongs to the
+system of River Plate countries. For the three Atlantic republics of the
+southern hemisphere, Argentina, Uruguay, Paraguay, form a distinct group
+or sub-continent known as the "River Plate" and thus suggest a second
+classification into the Rio-Platense and the Andine states. Lastly, a
+glance at the map shows that Colombia and Venezuela differ from all
+their southern neighbours in that they border upon the Caribbean Sea,
+that Mediterranean Sea of the New World which stretches between the two
+continents. Thus these two republics complete the circle of that
+Mediterranean system of lands--the Antilles, Mexico, Central America,
+Panamá--in which the United States are the dominant Power and in which
+Great Britain, France and Holland are also members--one may perhaps say
+subsidiary members. Thus each of these republics of the Spanish Main has
+a dual character. They are on the one hand South American continental
+states; but their coasts also face the coasts of the United States, and
+their borders, to east and west, touch lands which are not purely
+Latin-American in character. Venezuela, both historically and actually,
+faces both ways. On the one hand she is the country of the Orinoco, of a
+vast continental interior: on the other hand she belongs also to the
+Antillean system: her eastern neighbour is British Guiana, and her
+territory almost locks fingers with the British island of Trinidad,
+which is in some sort the distributing commercial centre for all the
+Spanish Main. Thus Venezuela completes that long Antillean chain which
+curves from Florida to the Spanish Main, a chain whereof several links
+are in the possession of the United States. This dual character stands
+out in the early history of the country. For, during most of the
+colonial period, Venezuela was the only part of South America not
+attached to the Viceroyalty of Lima. Eastern Venezuela depended on the
+Audiencia of Santo Domingo and was thus connected with the Antilles and
+with the Viceroyalty of Mexico, that is to say with North America. Then
+followed a period of dependence on the Viceroyalty of Santa Fé de
+Bogotá, until finally Venezuela was erected into a separate
+Captaincy-general.
+
+In the Republic of Colombia the dual position has been forced into
+prominence by recent events. On the one hand Colombia is a Pacific
+state, an Andine and continental country; yet her chief ports and
+arteries of communication lead northwards; and, until fifteen years ago,
+she bestrode the Isthmus of Panamá. In 1903 that Isthmus passed under
+the control of the United States; and Colombia, which formerly included
+the province of Panamá, now practically has the United States for her
+nearest neighbour.
+
+
+_Origin of Divisions_
+
+The connexion of these states with Europe dates from the first voyage of
+Columbus across the Atlantic and from Cabral's voyage to Brazil. The
+fabric of South America, as it stands today, was constructed in the main
+during the marvellous half-century from 1492 to 1542. During that time
+almost all the existing states took shape, and most of the present
+capitals were founded. That work is chiefly connected with five great
+names, Columbus, Balboa, Cortes, Magellan, Pizarro. Columbus and his
+companions or immediate successors founded the Spanish empire on the
+Antilles and the Spanish Main. Balboa sighted the South Sea, crossed the
+Isthmus, and claimed that ocean and all its shores for the Crown of
+Castile. Cortes established the empire of New Spain in North America.
+Pizarro, starting southwards from Panamá, discovered the empire of the
+Incas, shattered their power and set in its place a Spanish Viceroyalty.
+
+The political divisions marked out at the conquest, which still subsist
+in the main, were determined by the course of exploration and conquest.
+When a separate condottiere hit upon a convenient site for a port and
+founded a city either upon the sea-board or in some inland situation
+accessible from the port, his work usually came to be recognised by the
+creation of a separate government. These conquistadores showed judgment
+and capacity in their choice of sites and in their marches inland, which
+naturally followed the most convenient lines of communication. In this
+way it came about that the political divisions in the Spanish empire
+were mainly determined by natural economic causes, acting through the
+rather haphazard experiments of practical men rather than through any
+deliberate theory. These natural economic conditions are permanent in
+character: they still persist, and they account in great part for the
+continuance of the chief political divisions after the achievement of
+independence and for the failure of ambitious schemes and aspirations
+after union or federation. Thus the separate "kingdoms" and
+"captaincies-general" of imperial Spain grew into states and are now
+growing into nations. An illustration may be found in the Australian
+colonies. In Australia, separate existence was at first an economic
+necessity, demanded by the early colonists, owing to the distinct paths
+of settlement and the distance between ports. Union, achieved later by
+means of federation, was the work of artificial efforts of statesmanship
+acting patiently through many difficulties.
+
+The "Indies" were dependencies or possessions of Spain down to the
+nineteenth century. Viceroys, captains-general and governors were sent
+out from the Peninsula to rule in the capitals: corregidores held office
+in the smaller towns[1]: audiencias, at once tribunals and councils,
+were established in important centres. The course of trade was regulated
+and was directed solely to the Peninsula. But the strength and the basis
+of the fabric lay in the municipalities, which, although the
+councillors' seats were purchased from the Crown or inherited from the
+original purchasers, nevertheless offered some kind of public career to
+the inhabitants and afforded the means of local public vitality.
+
+
+_Emancipation_
+
+When Napoleon stretched out his hand upon the Spanish royal family and
+upon the Spanish kingdom, these municipalities everywhere became the
+channels of patriotic protest and resistance to French pretensions.
+Owing to the collapse of the monarchy, the unsympathetic and even
+hostile attitude of successive popular authorities in Spain, and the
+action of certain resolute leaders guiding the natural development of
+local activities, these movements in America soon shaped towards
+separation. In every capital the municipality formed the nucleus of a
+junta or convention, which first assumed autonomy and then was forced by
+the logic of events, and particularly by Spanish attempts at repression,
+to claim republican independence. The resultant struggle was shared in
+common by all. Buenos Aires, having worked out for herself a fairly
+tranquil and facile revolution, sent troops under San Martín to aid
+Chile and to invade the royalist strongholds of Peru. Bolívar, the
+Caraqueño, liberator of the Spanish Main and of Quito, sent his soldiers
+southwards through Peru. Finally, Venezuelans and Argentines, from
+opposite ends of the continent, stood side by side in that battle on the
+Andine heights of Ayacucho which ended the Spanish Viceroyalty of Peru
+and the Spanish dominion on the continent. The peoples of South America,
+through all subsequent divisions, have never quite forgotten that in
+those days they made common cause and united in a combined effort to lay
+the foundations of what might be a common destiny.
+
+The emancipation of Mexico was a separate movement, which followed a
+rather different course owing to the Indian origin of most of the
+population. The issue was confused and hindered by early outbreaks,
+which were in great part Indian insurrections and class conflicts not
+directed to any clear aim and tainted by brigandage. An attempt was made
+to cut the tangle of conflicting interests by the establishment of an
+independent Mexican monarchy. In 1823 this was overthrown by a military
+revolt, which started the Mexican republic on its stormy career. The
+movement of separation from Spain inevitably embraced also the
+Captaincy-general of Guatemala, which chose separation from Mexico, and
+assumed the name of Central America--an artificial political term rather
+than a geographical description. Its five provinces eventually separated
+into the five republics of Central America.
+
+Events in Brazil shaped themselves differently. Upon the French invasion
+of Portugal in 1807-8, the Portuguese royal family migrated to Brazil
+and made Rio for a time the capital of the Portuguese dominions. When
+King John VI returned to Lisbon in 1821, he left as Regent of Brazil his
+son Dom Pedro, who, a few months later, supported by Brazilian opinion,
+threw off allegiance to his father and declared himself an independent
+sovereign. Thus was established, or rather continued, that Brazilian
+monarchy which subsisted down to 1889 and which secured to that country
+tranquillity and a continuous though rather sleepy progress during the
+stormy period through which Spanish America passed after the achievement
+of independence.
+
+For the long struggle had been mainly destructive. It had not only swept
+away Spanish authority, but had blurred and in some parts had erased all
+authority, all stability and order, had confused or obliterated whatever
+had existed of political experience or tradition, and had left the
+ignorant masses a prey to theorists and adventurers. The result was
+that, for at least a generation after the achievement of independence,
+most of the Spanish-American states were agitated by a turmoil of
+multitudinous constitutional experiments, confused conflict and
+destructive civil war, alternating with periods of rigorous and often
+tyrannical personal despotism. These movements have been perhaps
+unfairly judged in Europe. The young communities of Latin America,
+wanting in political experience and torn by a long and unavoidable
+struggle, were engaged in sweeping up the débris of their great
+revolution.
+
+The Republic of Chile in great part escaped that turmoil through the
+establishment, after a brief period of conflict, of a fairly stable
+aristocratic oligarchy of landed proprietors. Her three "revolutions"
+have been landmarks rather than interruptions in her historical
+development; for they were brief, decisive and conducive to a clearer
+constitutional definition. Argentina, after the fall of the Dictator
+Rosas in 1852, began to feel her way towards union and order, and may be
+said to have achieved that end with the general acceptance of her
+completed Federal Constitution in 1880. In the tropical republics
+constitutional agreement was rendered more difficult by the mixture of
+races, by geographical and climatic obstacles and by a comparative
+remoteness from European influences. And in the Caribbean lands our own
+generation has seen Presidential seats occupied by despots of the old
+type, usually men of imperious and resolute character, dauntless courage
+and unscrupulous indifference respecting means and methods, men
+sometimes risen from the lowest station through ruthless force and
+cunning. Indeed, Mexico, after a period of remarkable economic
+development under the long autocracy of Porfirio Diaz, relapsed, upon
+his fall in 1910-11, into the condition of a century ago.
+
+Yet it may be generally said that the decade following 1870 was the
+beginning of a new era for the Latin-American republics. The extension
+of steam navigation, the building of railways, machinery applied to
+agriculture, the influx of immigrants from Southern Europe and of
+capital from Northern Europe, the growing demand in Europe for
+foodstuffs and raw materials--all these things favoured, particularly in
+the south temperate zone, a rapid and very remarkable economic
+development which accompanied and aided a consolidation and closer
+cohesion of the social and political fabric.
+
+The outstanding fact in the recent history of Latin America and in her
+present relations to the war is this economic development, this great
+creation of new wealth during the past generation. It has been described
+in many modern books upon the various republics, and can be studied in
+Consular Reports, which read like romances. The Pampa has become one of
+the chief granaries of the world; and Buenos Aires, the greatest city of
+the southern hemisphere, is the centre of a railway system almost equal
+in extent to that of the United Kingdom. Chile has been enriched by
+nitrate and copper, Brazil by coffee and rubber. The High Andes have
+become once more a treasure-house of mineral wealth: tropical hills,
+valleys and coastal plains yield the riches of their vegetable products.
+
+The date assigned above as the beginning of this great economic increase
+is the date when the modern German Empire came into complete being. The
+recent growth of Latin America coincides with the birth and growth of
+the German industrial system. The organised energy, the patient
+assiduity, the expanding productiveness of Germany found a great
+opportunity in meeting the new needs of these rapidly growing countries.
+Germans won a remarkable position in those lands and had marked out for
+themselves a yet more ambitious future.
+
+During the same period the United States, having decisively consolidated
+the Union, has taken its place among the great Powers of the world. That
+republic has also altered its economic character: for whereas previously
+the inhabitants had been principally engaged in the internal development
+of a vast territory and had been exporters mainly of foodstuffs and raw
+materials, the growth of population has turned them into a commercial
+people exporting manufactured goods. This dual development, political
+and economic, has profoundly affected the relations of the United States
+with Latin America.
+
+Meantime the long-standing and intimate connexion between these lands
+and the maritime countries of Western Europe has followed a natural and
+uninterrupted course suffering no signal change except that, quickened
+by a newly-awakened and more active interest on the part of Europe, it
+has become closer, more sympathetic and more firmly based upon mutual
+respect and understanding.
+
+It is the object of the following pages to examine these matters with
+reference to the Great War, and also to consider generally the bearings
+of the war upon the development of the Latin-American countries.
+
+FOOTNOTE:
+
+[1] The reform of 1780-84, which established a quasi-French system of
+intendentes and subdelegados, need not here be treated.
+
+
+
+
+CHAPTER I
+
+POLITICAL CURRENTS AND FORCES
+
+
+In estimating the bearings of the great war upon these countries, it is
+necessary to review certain political forces and currents of public
+thought, which the Germans have attempted to divert to diplomatic or
+bellicose ends. Since these influences date in part from the era of
+independence or even from an earlier date, clearness of vision demands
+some historical retrospect. When, upon the achievement of independence,
+schemes of Latin-American or of South American union were found
+impracticable, it was inevitable that frontier disputes and national
+rivalries should lead to tension and sometimes to wars between states.
+When it is remembered that every one of the ten South American republics
+was divided from several neighbours by frontiers partly traversing
+half-explored and imperfectly mapped regions, it is perhaps surprising
+that such questions have been on the whole so amicably settled, and that
+those which are still pending do not appear to be menacing or dangerous.
+Owing to the paucity of population on the ill-defined and remote
+interior frontiers, many of these questions did not become urgent until
+the latter part of the nineteenth century, when the increasing
+seriousness of political interests, the steadying influences of material
+growth, and the pressure of outside opinion favoured peaceful
+settlement, usually by means of arbitration. It would be possible to
+compile a formidable list of such disputes. Most of them are questions
+concerning historical and geographical delimitation, of great local
+interest, but hardly of world-wide significance, although for a time the
+world was alarmed lest the frontier dispute of Argentina and Chile
+should excite a conflict between the two peoples engaged in the
+development of the south temperate zone, the natural seat of an
+important trans-Atlantic European civilisation.
+
+A good example of the character of such frontier questions, of their
+mode of settlement and of their possible exploitation for Teutonic
+purposes is to be found in the long-protracted dispute concerning the
+boundary between Venezuela and British Guiana--a dispute which only
+became acute when gold was discovered in the region under debate. In
+deference to external influence, the whole question was submitted to
+arbitration, and was decided according to historical evidence concerning
+the early course of settlement. This example is of further interest as
+illustrating the German method of seizing opportunities. For, today,
+German propaganda seeks to revive the bitterness of this episode, and
+cultivates the favour of Venezuela by holding out the prospect of the
+enlargement and enrichment of that republic through the absorption of
+British Guiana and Northern Brazil; just as the neighbouring Republic of
+Colombia is assured that German victory and the humiliation of the
+United States will mean the return of Panamá to Colombia. It would be
+unwise to dismiss such persuasive lures as too fantastic even for the
+tropical atmosphere of the Spanish Main. Wherever opportunities occur,
+similar efforts are made to turn to account national jealousies,
+resentments and ambitions, and particularly to exacerbate the relations
+between Brazil and Argentina, between Peru and Chile, between Mexico and
+the United States.
+
+The rivalry between the Portuguese and Spanish elements in South America
+dates from early colonial times; and, as often happens in disputes
+between members of the same family, has been perhaps more warmly felt
+than the historic rivalry between Anglo-Saxon and Latin in America. The
+feeling was kept alive after emancipation by a dispute concerning the
+possession of the Banda Oriental (now the Uruguayan Republic), which
+geographically belonged rather to the Portuguese or Brazilian system,
+historically to the Spanish or Argentine system. During the eighteenth
+century Spaniards and Portuguese had disputed its dominion in a series
+of rival settlements, of wars and treaties, which finally left Spain in
+possession. The struggle for emancipation reopened the question. For
+three years (1825-28) Argentina and Brazil fought for possession. The
+quarrel was adjusted, through the mediation of British diplomacy, by the
+recognition of the Banda Oriental as a sovereign republic. Twenty years
+later, Rosas, dictator of Buenos Aires, attempted to reverse this
+decision by force of arms. His fall, partly brought about by Brazilian
+intervention, settled the question. But it has left traces upon the
+vivacious local sentiment of those young countries.
+
+Again, the war which Chile waged in 1879-83 against Bolivia and Peru
+ended in the occupation by Chile of Western Bolivia and also of the two
+southern provinces of Peru. The ultimate possession of these two
+provinces is still under discussion. Meantime, they remain in Chilian
+hands; and, although a friendlier atmosphere now prevails, diplomatic
+relations have never been resumed between Peru and Chile.
+
+In these inter-state questions Germany seeks her opportunity for fishing
+in troubled waters. German diplomacy and propaganda have striven to
+reopen these old sores and to impede Latin-American consolidation by
+setting state against state, and by fomenting or reviving latent
+ambitions of hegemony or aggrandisement. Those who favour Germany are to
+win great territorial rewards, at the expense of their misguided
+neighbours, upon the achievement of that German victory which is
+represented as certain. Particular efforts have been made to embroil
+Argentina with her neighbours; a prominent feature of this programme is
+the dismemberment of Brazil.
+
+But the most important of these political movements and the one which
+seemed to offer most promise to German schemes, is the long dispute
+between Mexico and her northern neighbour. This is a part of that
+process which since the beginning of the nineteenth century has
+radically altered the map of the Caribbean lands and has shifted the
+whole weight of political influence in that region. The chief effort of
+Germany is to exploit the historic rivalry between Anglo-Saxon America
+and Latin America, and to separate north from south by reviving the
+smart of past incidents and by stirring up apprehensions as to the
+future.
+
+Here, again, it is necessary to glance back and summarise the chief
+actual events of that history[2]. When Latin-American independence was
+achieved, between 1820 and 1824, the United States had already become
+the dominant power on the Mexican Gulf by the acquisition of Louisiana
+and Florida, and in 1826 she exercised the privileges of that position
+by prohibiting Mexican and Colombian designs for the emancipation of
+Cuba. In 1845 Texas, which nine years before had seceded from Mexico,
+was admitted to the Union, and in 1846-48 half the territory of the
+Mexican Republic was transferred to the United States by a process of
+conquest confirmed by purchase.
+
+A pause in advance followed, until events showed that Isthmian control
+was a national necessity to the United States. It suffices here to note
+the conclusion of a long diplomatic history. In 1903 the United States,
+having failed to obtain concessions of the desired kind from Colombia,
+supported the province of Panamá in her secession from Colombia, and
+speedily obtained from the newly formed republic a perpetual lease of
+the canal zone, together with a practical protectorate over the Republic
+of Panamá. The United States then proceeded to construct and fortify the
+canal. She also procured from Nicaragua exclusive rights concerning the
+construction of any canal through Nicaraguan territory, and erected in
+fact a kind of protectorate over that republic.
+
+Meanwhile, in the Antilles events were shaping towards control from the
+north. A long-standing trouble concerning Cuba culminated in the
+Spanish-American War of 1898, which brought about the annexation of
+Porto Rico and the Philippines to the United States, while Cuba became
+a republic under the tutelage of that Power. Five years later the United
+States, in order to save the Dominican Republic from European pressure,
+undertook the administration of the revenues of that state. In 1915 she
+interposed to suppress a revolution in Haiti. Finally last year (1917)
+she purchased from Denmark the islands of St Thomas and Santa Cruz.
+Recent rumours as to a proposed further purchase--that of Dutch
+Guiana--have been officially denied.
+
+These advances have not gone beyond the Caribbean area, where
+geographical conditions place the United States in a dominant position.
+Her relations with the more distant southern countries, not touching the
+Mediterranean Sea of the New World, fall into a different category and
+do not directly concern the immediate topic.
+
+But in the Caribbean area the United States has established a Sphere of
+Influence, not indeed explicitly defined as such, but recognised in
+effect by other governments and accepted by some at least of the
+republics occupying that region. The events of the last twenty years
+further indicate that the United States is undertaking the obligation,
+usual in such cases, of imposing a "Pax Americana." As in similar
+instances elsewhere, this Pax Americana has not quite clearly marked its
+geographical limit, nor is it guided by any theoretical consistency, but
+rather by the merits of the case and the test of immediate expediency in
+each instance. Thus, whereas the United States enforces peace in Haiti
+and definitely undertakes to maintain internal tranquillity in Cuba, she
+has on the other hand withdrawn from interposition in Mexico. The
+outside world has, on the whole, treated these matters as the concern of
+the United States and respected the working of the Pax Americana.
+
+Meanwhile, geographical proximity has favoured North American commerce,
+and in recent years more than half the trade of Central America was
+carried on with the United States.
+
+It has been necessary to define the situation, because it is accepted by
+the Allies, while it is at the same time jealously assailed by Germany.
+
+For Germany, too, has won a remarkable position in the same region by
+her economic efforts, which have also their political side. On the one
+hand Central America is in a kind of dependence upon the United States:
+on the other hand, it has been said, with obvious exaggeration, but with
+some epigrammatic truth, that Guatemala before the war had become a
+dependency of Germany in everything but the flag. German intelligence
+and industry had seized the opportunity offered in the recent
+development of a comparatively backward region. Peaceful penetration was
+a work of methodical effort, of organised combination. German firms,
+mostly of recent origin and sprung from small beginnings, always
+preferred to import from Germany in order to favour German trade. Indeed
+they were bound to do so by the terms of the credit granted to them by
+German banks or Hamburg export firms for starting their business. Young
+men came out from Germany--serious, plodding youths, working for small
+pay, taking few pleasures and immersed in business. German retail
+houses, either newly established or formed by the insinuation of Germans
+into native families or native firms, worked in close contact with the
+importing houses. The shipping companies worked with these latter and
+with the Hamburg firms. The chief German achievement in this region was
+the control of the coffee industry, which was acquired by the usual
+German combination of admirable industry, patience and intelligence with
+unscrupulous greed and cunning. Germans advanced money to the grateful
+owners of coffee estates on such terms that the native owner in course
+of time found himself bound hand and foot by ever-increasing debt; and
+the properties usually passed into the hands of the exacting foreign
+creditor, the former owner being often kept on as paid manager. In this
+way, besides doing a good stroke of business for himself, the German
+served Germany by increasing German interests in the country, providing
+cargo for German ships and helping to secure for Hamburg the coffee
+market of Europe. Every little advantage gained by an individual German
+was reckoned as a national gain, as the starting-point for another
+German step forwards. Nor was German advance confined to Guatemala: it
+penetrated all Central America as well as Mexico and the Antillean
+Republics, especially Haiti.
+
+But the maritime war, the British blockade and Black List and, finally,
+the participation of the United States have shaken the fabric thus
+laboriously raised. German ingenuity had overreached itself. For it was
+the insidious and cruel method of German land-grabbing in Guatemala
+which more than anything determined that republic to declare war, in
+order to escape from this ignominious economic dependence, this foreign
+control of a national industry. For it would be difficult to define a
+clear _casus belli_. But in the peculiar form of her declaration of war
+she told the world under which system she chose to live. For in April
+1918 Guatemala announced that thenceforth she occupied the same position
+as the United States towards the European belligerents.
+
+The iniquity of North American intervention in Nicaragua and the implied
+menace to other states were insistently preached by Germany throughout
+Central America; yet, a month later, Nicaragua also declared war,
+proclaiming at the same time her solidarity with the United States and
+with the other belligerent American Republics.
+
+In Costa Rica the Germans represented the non-recognition by the United
+States of President Tinoco, who owed his position to a _coup d'état_, as
+a menacing insult to that Republic. Then, the same Germans intrigued to
+overthrow Tinoco on account of a Government proposal to tax coffee
+stored for future export. The upshot was that, in May 1918, Costa Rica
+declared war. Two months later Haiti took the same decisive step, and
+also Honduras.
+
+The significance of these additions to the belligerent ranks is perhaps
+hardly realised in Europe. Every one of them is a serious reverse in the
+economic war which Germany is waging, and every one makes it more
+difficult for Germans in America to keep up communication with Hamburg.
+
+Indeed, the tale of recent events reads like a mere series of German
+reverses, snatching away advantages already gained. In 1912, the treaty
+for the American purchase of the Danish Antilles was all but complete,
+when German influence in the Upper House of the Danish Parliament
+prevented ratification and thwarted, for the time, the plans of the
+United States. During the present war, the purchase was completed,
+Germany being impotent. Again, Germany, having acquired a strong
+position in Haiti, designed that the Haitian Republic should become a
+Teutonised base of activity, repudiating the Pax Americana and
+threatening the security of American sea-paths. The United States put
+out a hand, and this highly-coloured vision faded away. Cuba, Panamá,
+Guatemala, Nicaragua, Costa Rica, Haiti, Honduras--all of these in turn
+struck at Germany through the declaration of war[3].
+
+Yet Germany, beaten from point to point, still holds her ground in
+Mexico. One of the curious side-scenes of the great war was the attempt
+of the German Foreign Office to contrive an offensive alliance of Japan
+and Mexico against the United States. Mexico was to be rewarded by the
+recovery of Texas. This underhand plot against a neutral nation at peace
+with Germany collapsed at its inception. Yet the present German menace
+in Mexico is not to be despised. The rulers in the Mexican capital
+exhibit an ostentatious cordiality towards Potsdam and sometimes an
+almost petulant impatience towards the Allies. The German is the
+favoured one among foreigners in the republic. Supported by the German
+Legation, the German banks, and the countenance of the Mexican
+authorities, Germans are strengthening their economic hold, particularly
+through the acquisition of oil and mining properties. This advance has
+its political side: for hopes seem to be entertained that a militant
+power, inspired by Germany, may press upon the long southern frontier of
+the United States, disturb her pacific influence in the Antilles,
+threaten the security of her maritime routes, and interpose a barrier
+between her and her scientific frontier on the Isthmus of Panamá. Such
+schemes may sound fanciful, and no doubt in their entirety they are
+impracticable. But it would be a mistake to regard Germany as powerless
+or to undervalue her tenacious and intelligent opportunism. And, in any
+case, the economic position demands attention.
+
+A word may here be said about the German effort to hold up before the
+eyes of all South America the spectre of the "Yankee peril." These
+German efforts have not succeeded, as will be shown later. Yet it would
+be rash optimism to assume that they have won no temporary success.
+Correspondence published by the Washington authorities shows that the
+German Minister at Buenos Aires succeeded in inducing the Argentine
+Government to approach Chile and Bolivia with a view to a combination
+against the United States--a scheme which, if carried through, might
+have produced a split in the political system of the South American
+Republics. A similar tendency appeared in President Irigoyen's attempt
+to convoke a conference of neutral American states, an attempt which has
+had no result except the dispatch of Mexican missions to Buenos Aires.
+Such incidents cannot be ignored: they illustrate a movement which is
+not quite effete.
+
+From what has been said above it is obvious that German designs in
+Central America and the Antilles are not quite recent in their
+inception. The same is true of another field which for a generation past
+has attracted German ambitions. The flourishing self-contained
+German-speaking communities in Southern Brazil offered an attractive
+goal to an empire which was feverishly building ships, pursuing a
+maritime future and hunting for colonies. Here was a German colony in
+existence and almost constituting already an _imperium in imperio_.
+German emigrants, brought out by the Brazilian Emperors between 1825 and
+1860, had by thrifty and intelligent industry done much to develop the
+south; and their descendants--now estimated to number 400,000--inhabited
+German towns, with German schools, newspapers and churches, where even
+proclamations of the Brazilian Government were published in German.
+Although not a product of the modern German Empire, this _Deutschtum im
+Ausland_ has been studiously cultivated by that empire through every
+possible agency, and especially by imperial grants to German schools,
+whose pupils were taught that they were Germans owing a prior allegiance
+to Germany. Some hope was entertained of carving a Teutonic state out of
+Brazil, perhaps to form nominally, at all events for a time, an
+independent republic. The disturbances in the south which followed the
+establishment of the Brazilian Republic appeared to favour this chance,
+which depended however on one condition, the countenance of Great
+Britain in order to cope with the opposition of the United States. But
+in any case the vigour and increase of the German element was to
+dominate Southern Brazil and help to bring that region into moral
+dependence upon Germany. That these designs were not viewed in South
+America as wholly imaginative, is proved by a recent incident. The
+Uruguayan Government, after revoking neutrality and seizing the interned
+German ships, asked and obtained an assurance of Argentine support, in
+case Uruguayan soil should be invaded by Germans from Southern Brazil.
+It may be added that recent German commercial penetration has been
+particularly active in Brazil.
+
+Owing to their remoteness and lesser numbers, the German communities in
+Southern Chile--whose first founders emigrated from Germany after the
+troubles of 1848--did not invite such large political designs, although
+there is reason to think that in the earlier part of the war, when a
+German war fleet still kept the sea, the manifold activities of Germany
+included some notion of obtaining a permanent footing in the Pacific.
+These German-speaking settlements have been carefully cultivated, by the
+same methods as those used in Brazil, to become a Germanising force in
+Chile and a German outpost on the west coast. In 1916 a Chilian-German
+League was established, to include all persons in Chile of German
+origin and language, with the intention that the members should use
+their influence as Chilian citizens, especially at election time, on
+behalf of German interests.
+
+Another influence which Germany strives to turn to account is the recent
+movement represented by the _Unión Ibero-Americana_, which seeks to draw
+together Spain and the Spanish-American republics. The German efforts to
+give a Teutonic tinge to the present Spanish movement of national
+revival look also towards Latin America, in the hope that friendship
+with Spain may tell against French and North American influence; and
+attempts are being made to exploit for that purpose the Ibero-American
+celebration which is to be held in Madrid in October, 1918.
+
+Lastly, in estimating political forces which have to be reckoned as
+factors in the conflict, some mention should be made of the very warm
+sentiment towards France which has prevailed for generations among
+educated South Americans--a sentiment which passes the bounds of mere
+private or even semi-official relations. This feeling is not universal,
+and would hardly be admitted in clerical and military circles. But it is
+sufficiently strong and general to be remotely compared to the sentiment
+which a Greek ~apoikia~ usually entertained towards the mother-city.
+French thought permeates the work of Latin-American historians and
+political writers. French example and theory mould the form and the
+action of governments. Paris is felt to be the capital and the centre of
+inspiration for Latin civilisation. The debt of South America to France
+has been generously, and indeed affectionately, avowed by a succession
+of Argentine writers. A recent German semi-official utterance openly
+admits and deplores the historic attachment of South America to France.
+This attitude towards France can hardly fail to have some public weight;
+and there is no doubt that the course pursued by Brazil has been partly
+inspired by love of France.
+
+FOOTNOTES:
+
+[2] For the sake of brevity and clear relation to the present topic,
+this history is not here examined with reference to any theory or
+doctrine of policy. In order to explain the present position, the
+salient facts only are given, but not the comments and explanations of
+statesmen, nor the diplomatic passages leading to these events. One may
+digress for a moment to point out that a sufficient interpretation of
+these events is to be found in the natural expansion of a vigorous
+growing people. In the process of "winning the wilderness and conquering
+the continent" the United States found that a considerable part of the
+field was in nominal possession of those who were doing little to use or
+civilise it. These claims, which obstructed progress, were successively
+disposed of. Nor has it been found possible to limit that advance to
+certain indispensable acquisitions of territory. National security has
+demanded varying degrees of control over neighbouring peoples of
+inferior development. The process finds many historical parallels: and
+it is an intensely practical, not a theoretic, matter.
+
+[3] It may be pointed out that for nearly seventy years the United
+States has acquired no territory from any Latin-American republic,
+except the perpetual lease of the canal zone, which was freely granted
+on most profitable conditions by the Republic of Panamá. Cuba and Panamá
+owe their separate existence, together with an unexampled prosperity and
+internal tranquillity, to the United States. In Nicaragua and Santo
+Domingo the great material benefits of interposition seem to outweigh
+sentimental objections. The financial obligations of Nicaragua have been
+adjusted through the help of the United States; and it may perhaps be
+felt that improved public solvency, material prosperity and internal
+security, though effected through outside aid, enhance instead of
+diminishing the national dignity.
+
+
+
+
+CHAPTER II
+
+THE GERMAN OUTLOOK ON LATIN AMERICA
+
+
+"South America is the special theatre and object of German commercial
+industry." This emphatic declaration--reiterated in various forms by
+other German authorities--is the theme treated by Professor Gast,
+Director of the German South American Institute at Aix-la-Chapelle, in a
+pamphlet entitled _Deutschland und Süd-Amerika_, which may be regarded
+as a semi-official exposition of German objects and opportunities. The
+pamphlet appeared in the latter part of 1915. The events which have
+since occurred, however damaging they may be to German hopes, do not
+affect the views expressed. Since this advice from a German authority to
+Germans is a frank revelation of German views, it seems worth giving a
+very brief abstract of the main points, which the writer elaborates at
+great length, though he does not enter upon details of business method.
+
+"The German Press," says Professor Gast, "has never published so much
+about Latin America as during this war. This proves the importance of
+German relations there and the need of clear ideas concerning them. An
+economic competition, intense beyond all example, has sprung up
+concerning Latin America. The chief feature is the 'Financial Offensive'
+of the United States. The present grouping of competitors is accidental
+and false. The natural conflict is between the United States on the one
+side, and on the other side all industrial and exporting peoples,
+including Japan. The United States, the most dangerous competitor, is
+handicapped by the higher cost of production in North America and by the
+want of that facility of adaptation to customers' needs in which Germany
+excels. Yet the war has revealed the weakness of German reputation.
+Everywhere the prevailing strain is antipathy to Germany. It is the duty
+of Germans to put aside resentment and to strengthen their economic
+position. For trade with the two Americas is the chief source of
+prosperity for modern German commerce, particularly that of Hamburg. And
+after the war this trans-Oceanic trade will be a matter of yet more
+urgent national importance."
+
+This general survey is followed by an examination of special
+opportunities open to Germans. "Germany has not the many-sided relations
+with Latin America possessed by the Latin peoples of Europe, nor the
+politico-geographical advantages of the United States, nor the strong
+capitalist position of Great Britain. She must make the most of what she
+does possess. Her main asset is the German in South America. Every
+German abroad means the investment of interest-bearing capital for
+German cultural expansion. Two things are required of him, to win esteem
+by good work and to place his personal influence at the disposal of
+German national ends. The compact German communities in Brazil and in
+Southern Chile should be supported and organised from home, but not
+obtrusively, lest local feeling be aroused. They may perhaps serve
+Germany best by a partial mingling with the native population, so as to
+spread German culture and the taste for German goods. But, everywhere,
+all individual Germans are Germanising agents. The German merchant
+particularly is the missionary of cultural and political influence. So
+also the German soldier, particularly the German officers employed as
+instructors in Chile and Argentina. Most South American officers feel a
+professional sympathy for Germany. Hence spring useful personal
+friendships: to foster and enlarge these is an urgent duty. Germans
+exercise other professions which facilitate the patriotic diffusion of
+German culture. Such are physicians, who find peculiar opportunities in
+their intimate relations with families in their homes; the clergy, both
+Protestant and Roman Catholic; teachers, whose proved idealism is an
+admirable equipment for the spread of German culture; scientific men,
+journalists, surveyors, geologists, professors in training colleges. If
+possible they should work in combination, as they do in the German
+Scientific Club of Buenos Aires. Every one of them must use every
+professional opportunity and every item of personal influence and
+private friendship for the advantage of Germany.
+
+"A knowledge of German culture must be spread by a systematic
+educational movement. But this must be done tactfully. The German's
+propensity to foreign studies will aid him. He must equip himself by
+assimilating Latin culture, must use his knowledge of French culture,
+must oppose French influence by encouraging Spanish culture. His object
+is to catch souls; and, next to financial strength, the first necessity
+is tact."
+
+Two points stand out in this very candid statement. First, every German
+abroad is an item in the national balance-sheet; he must earn interest.
+The intimacy between the pastor and his flock, the physician's
+intercourse with his patient, are set down on the credit side of the
+national profit-and-loss account. Secondly, the most profitable method
+is a liberal education. There is something whimsical in the combination
+of inhuman material calculation with humanising influences, and one may
+smile at the heavy solemnity of the suggestion that the German will find
+it pay to acquire tact and to Latinise himself for outside intercourse.
+But the suggestion should not be dismissed as absurd. Whatever can be
+done by effort, study, and will-power the German will do. He is training
+himself to be a more formidable competitor than ever in the economic
+arena.
+
+Indeed, the pamphlet is valuable, not only as a hint for the future, but
+also as an avowal of methods which are already at work. One of these is
+a deliberate system of politic and profitable marriages. German clerks
+receive promotion only on condition that they marry native girls and
+establish homes in the country. This policy has been so steadily pursued
+that everywhere German business men have entered Latin-American families
+and exercise a Teutonising influence. Through marriage also, accompanied
+by skilled and profitable management, Germans acquire control of
+property and of trading concerns. Again, owing to their reputation for
+expert efficiency and scientific competence, Germans fill many posts of
+influence and trust in universities, scientific institutions and
+government departments. Argentina is an example. In the National
+University Germans control the engineering and chemical sections, where
+their pupils are trained to use German apparatus and methods. German
+curators in the Geological Museum receive early information as to any
+discoveries of minerals or oil. Germans employed as experts in the
+public service learn details of any public works proposed by the
+government or the municipalities. Reports on such schemes pass through
+their hands and, since estimates are not carefully checked, they are
+thus able to favour German trade at the expense of the Argentine
+tax-payer.
+
+In every city the German _Verein_ unites the German community, so that
+Germans may avoid competition and may co-operate with one another and
+with Germans in the Fatherland. The bank and the merchant work in close
+combination and have at their disposal all the information gathered by
+German employees in other banks and in business firms. The German has
+been quick to anticipate others in occupying new ground: for example, in
+the remote but vast and productive region of Eastern Bolivia, watered by
+the three great navigable affluents of the Madeira, a region which is
+just beginning to awake to the promise of a great future, the German
+trader hitherto has scarcely had a competitor. Again, the German has won
+predominance in the electrical and chemical industries by applying his
+practical scientific aptitude to the supply of new wants. Lastly, the
+German is distinguished by close attention to detail and adaptation to
+local needs.
+
+Yet Germans note and deplore "a constant strain of antipathy to Germany,
+a wave of anti-German hate." The remedies suggested are: first, a more
+efficient German service of news, and secondly, "a systematic cultural
+activity, conducted with push and comprehensive inspiration."
+
+What is being done in Germany to realise these methods? First may be
+mentioned the various associations for extending German influence abroad
+and binding to the Fatherland all Germans living abroad, whether in
+South America or elsewhere. Such are the Pan-German League, the German
+Navy League, the League for Germanism abroad, the League for German Art
+abroad, the School League which gives support to German schools outside
+Germany, the German rifle club, with its headquarters in Nuremberg, to
+which rifle clubs abroad are affiliated, and, lastly, the Foreign
+Museum, recently founded under the highest official patronage, which
+arranges economic exhibitions in various German cities. Although these
+associations were not founded particularly for Latin-American objects,
+their present efforts are particularly bent in that direction, as the
+Pan-German League lately declared. But, besides these comprehensive
+agencies, Germany possesses three institutions specially devoted to
+Latin-American purposes. One of these existed before the war, namely the
+German South American Institute at Aix-la-Chapelle, to which the
+Imperial and Prussian authorities have entrusted "the cultivation of
+scientific and artistic relations with South and Central America on the
+lines of a general cultural policy." Its objects are to draw together
+German and South American students, to maintain a South American library
+and information bureau, to encourage in Germany the study of South
+American matters by prize essays, travelling scholarships and similar
+methods, and to use every means of making German intellectual work known
+to South Americans. The Institute publishes a Spanish monthly
+illustrated periodical, _El Mensajero de Ultramar_, and also a
+Portuguese version, _O Transatlántico_. These papers are well calculated
+to uphold German culture across the Atlantic: they are admirably got up
+and aim at presenting an attractive picture of German life and
+institutions, dwelling particularly on the steady continuance of German
+industry, artistic production and even sport during the war. The
+Institute also publishes a German periodical, strictly business-like and
+containing only technical illustrations, for the purpose of keeping
+Germans informed on Latin-American affairs.
+
+The Institute at Aix, although its ultimate object is mainly economic,
+leaves business methods and matters of immediate economic concern to
+other agencies. Before the war there flourished already in Germany a
+League for Argentina and one for Brazil. In 1915 these two Associations
+combined in order to form a German Economic League for South and Central
+America. A prospectus was issued and a meeting was held in Berlin under
+the presidency of Herr Dernburg, who spoke of the coming economic
+struggle and pointed out that German trade, except in the electrical
+industry, was not supported by large capital investments such as their
+rivals possessed. The dependence of South America on other industrial
+nations, owing to want of coal and iron, would facilitate German
+investment, to supply this defect. Germans had failed to make friends
+through not understanding the psychology of South Americans. German
+strength and practical energy must avoid arrogant pedagogic ways and
+must make their way through a tactful and sympathetic propaganda.
+
+At this meeting the league was inaugurated with 120 members. Very soon
+it numbered 1000. Among the associations which figure as members are the
+German Industrialist League, the German Mercantile League, the Berlin
+Chamber of Commerce, the South German Export League, the League for
+Germanism abroad, the Society for German Art abroad. The three great
+banks, known in Germany as the three D.'s, are members, so also the
+great Shipping Companies; also newspaper and publishing firms; also many
+of the great industrial syndicates. A notable feature in the work of the
+league is the maintenance of a club in Berlin where business men and
+other travellers from South America are welcomed. A great point is made
+of this work of personal cultivation. The object is to make by
+hospitable attentions a Germanophil convert of every Latin-American
+visitor to Berlin and send him back across the Atlantic a missionary for
+German culture and German business. But the principal aim of the league
+is to unite all Germans who have any business interests in any part of
+Latin America, so as to pool together their knowledge, their resources,
+and their efforts. In this economic war the Germans move, as it were, in
+mass formation. Branches of the league were speedily established in
+every one of the twenty-one American republics, and these branches
+co-operate actively with the parent society at home in the furtherance
+of German influence and economic advantage.
+
+A third institution, the Hamburg Ibero-American League, has been formed
+in the metropolis of German Latin-American trade. Already before the
+war, besides the usual trading organisations of a great port, Hamburg
+possessed a Technical High School which is practically a university of
+trade and industry; a Seminary for Romance languages and culture, which
+maintains a South American library; and a singularly complete bureau of
+information concerning all over-sea countries, which is known as the
+Hamburg Colonial Institute.
+
+But Hamburg still felt a want, which was supplied by the formation of
+the Hamburg Ibero-American League. Its objects are: (1) in Spain and
+Spanish America: to spread a knowledge of Germany's resources and to
+cultivate friendly relations in government departments, semi-official
+institutions and social, literary and scientific circles. To circulate
+the illustrated weekly _El Heraldo de Hamburgo_, also pamphlets in
+Spanish and Portuguese; to station confidential emissaries in
+appropriate posts; to encourage interchange of visits and to inculcate
+the advantages which Germany offers as a training-ground for every
+calling. (2) In Hamburg: to prepare for intercourse after the war by
+arranging lectures and by organising language courses in German, Spanish
+and Portuguese, and particularly to establish a _Centro Ibero-Americano_
+with club, reading room, and information bureau, a house fully equipped
+for the hospitable reception of travellers from the Peninsula and from
+South America. The league is to consist of twenty-two sections, one for
+Spain, one for Portugal, one for each of the twenty Latin-American
+republics, in order that all who have interests in any part of the
+Ibero-American world may support one another.
+
+A fourth association, the Germanic League for South America, has been
+formed more recently for the purpose of uniting together persons of
+German speech and origin in Latin America and preserving their Germanic
+character, particularly by means of German schools. This institution has
+a special significance just at the time when the Brazilian Government
+has determined that all its citizens shall be Brazilians and nothing
+else.
+
+The three leagues which have their headquarters in Berlin, Hamburg and
+Aix-la-Chapelle have been in active movement for some time, and there is
+evidence from South America that they do their work in a thorough and
+effective fashion and have won considerable success, particularly
+through cultivating the friendship of South American visitors to
+Germany.
+
+But in estimating German designs, we must look beyond these German
+leagues, which are merely an incidental part of German economic
+organisation. That subject far transcends the present topic, but
+embraces it so closely that the main outlines may be indicated. Most of
+the German industries are consolidated into cartels or syndicates in
+such a way as to eliminate competition, regulate prices and output,
+distribute risks or losses, facilitate the export of surplus products,
+and apportion business between the members of the cartel. The whole body
+of industrialists is united in league; merchants or exporters are
+similarly united; a small group of great banks, practically constituting
+one power, manages the financial side of the national industry and
+commerce with a singular mixture of daring and judgment, guided by a
+wonderfully complete enquiry system, a veritable international secret
+service; the great shipping companies, which coalesce more and more into
+a single huge national concern, work in close co-operation with
+organised industry and organised trade; railway transport is managed by
+the state so as to dovetail into the same machine: and the whole forms
+altogether a carefully constructed system of co-operation, cohesion and
+united action. That organisation has not fallen into abeyance during the
+present war. On the contrary, month by month it is being perfected,
+rounded off. Lastly, Germany has appointed, as it were, an economic
+headquarters staff, a small group of expert business men who for two
+years past have been devoting themselves to the working out of means for
+transferring Germany from a war basis to a peace basis with the least
+possible disturbance and delay. This higher command has its hand upon
+the levers of the whole machine, which, upon the conclusion of peace, is
+at once to resume with redoubled energy its interrupted task, industrial
+and commercial recovery, and particularly the economic conquest of Latin
+America.
+
+In order that we may know what Germany is doing, these German
+organisations have been noted here. It would be impertinent, in both
+senses of the word, to compare or to criticise British methods. The
+problem of British reorganisation is being studied by experts and worked
+out by those in authority, and it is constantly expounded in official
+publications. But, without attempting to give individual opinions, one
+may quote some of authority.
+
+"Great nations do not imitate." We may learn much in detail from the
+Germans; but Englishmen could not adopt the German system unless by
+first turning themselves into Prussians. Our people would never submit
+to Prussian methods of state control. Moreover all British experience
+shows that in this country such control would be disastrous. Yet
+competent authorities agree that immediate organisation is a necessity.
+It cannot be beyond the wit of Englishmen to devise means whereby
+British individual enterprise, common sense and self-reliance may work
+through methods of systematic organisation, combination, united action.
+From the friends of Britain everywhere comes the same warning. It is
+most appropriate to conclude with one uttered by a South American of
+unimpeachable authority, Don Pedro Cosio, former Uruguayan Finance
+Minister, who recently represented the Republic of Uruguay in this
+country. In a report to his government on the organisation of labour in
+the United Kingdom he writes, "The nation which is the first to organise
+its industry for the commercial campaign will be the one which will
+occupy the forefront in foreign markets."
+
+
+
+
+CHAPTER III
+
+THE ECONOMIC WAR AND ITS PROPAGANDA
+
+
+"Economic War":--This reiterated German phrase is not mere metaphor. The
+Germans pursued in peace the operations of war. To them commerce meant
+not merely the pursuit of trade in peaceful rivalry with others, but a
+sustained effort to defeat and oust rivals and reduce to economic
+subjugation the lands penetrated. By plunging into open war, which was
+meant to continue and to confirm that process, the Germans have risked
+their previous gains. Their own weapons are turned against them. The
+economic character of the actual war and the efficacy of the economic
+weapon in the hands of the Allies become more and more evident. In the
+early months of the war this weapon was not wielded with thorough
+decision, and Germans beyond the Atlantic were able to carry on
+considerable European trade. But today the German merchant is striving
+to defend, against an overwhelming weight of maritime pressure, the
+ground which he had won through a generation of laborious and patient
+effort.
+
+This economic struggle covers all the shores of all the Oceans. Its
+Latin-American phase has a special interest owing to the remarkable
+position attained in those lands by the Germans, the high value which
+they attach to that position, and their special efforts to maintain it
+under present difficulties. The most varied ingenuity is called into
+play to circumvent the barrier which now cuts off those countries from
+Germany. Present risks and losses are viewed as part of the inevitable
+waste of war, as an outlay deliberately incurred in the all-important
+task of holding open the gate through which, upon the conclusion of
+peace, the fruits of German industry are at once to pour in an
+irresistible stream, in exchange for those raw materials which are
+urgently needed to feed the industrial life of Germany after the war.
+This is the constant preoccupation of German business circles--the need
+of raw materials. And this is the reason why Latin America, the great
+source of raw materials, is courted with eager hope and anxious
+apprehension.
+
+It is noticeable that a very large part of the cargoes condemned by the
+British Prize Court, as actually intended for the enemy though consigned
+to other pretended destinations, consists of goods from Latin America.
+For example, in August 1917 the Court condemned quantities of coffee,
+seized on a score of neutral steamers and ostensibly consigned to
+Scandinavian and Dutch merchants, but in fact shipped by a German firm
+at Santos for the parent house in Hamburg. Two months later, it was
+stated in court that nearly £400,000 worth of wool, shipped from Buenos
+Aires to the Swedish Army Administration at Gothenburg, had been seized
+by the British as being in fact destined for Leipzig. At the same time
+the Court condemned a number of manufactured rubber articles which had
+been found concealed in a passenger's clothing. On a later occasion,
+coffee and cocoa valued at nearly £200,000 were condemned, being part
+cargo of a Swedish ship bound from California to Gothenburg. They were
+consigned by a new and insignificant firm in San Francisco to various
+persons in Scandinavia, but were in fact on their way from Guatemala to
+Hamburg through Sweden.
+
+The elaborate webs spun by German traders and revealed by intercepted
+correspondence were exposed in the Prize Court. Their methods were to
+find persons in neutral countries as nominal consignees, to act as
+intermediaries for getting the goods to Germany; to set up bogus
+companies for the same purpose; to use false names, or names of persons
+having no genuine interest in the consignment, and to manufacture false
+documents in order to give the appearance of neutral business. This was
+done to evade capture by deceiving the belligerent searchers. In some
+instances these methods succeeded. Quantities of coffee, consigned to
+Scandinavia, managed to elude the allied warships and reach Hamburg.
+
+These are cases of import into Germany. The reverse process, export from
+Germany through neutrals, follows similar lines. German goods, falsely
+labelled and described as Swiss or Dutch or Scandinavian manufactures,
+have found their way across the Atlantic in neutral ships.
+
+The Post Office has also served as a channel of secret trade. Pictures
+in the Press have exhibited the odd ingenuity of these devices: how
+coffee from Brazil to Germany was found concealed in rolls of
+newspapers, and how thin slabs of rubber were sent by post as
+photographs, also how quantities of jewellery have been despatched from
+Germany for South America in letters and in bundles of samples or
+journals. Goods so sent from Germany through the Post Office are mostly
+such as combine small bulk with high value--especially drugs and
+jewellery.
+
+These partial examples, although each instance may seem small enough,
+indicate collectively a good deal of enemy trade which has found devious
+routes under stress of war. These manoeuvres may seem at first sight
+merely trivial curiosities or at all events to have no more than
+ephemeral importance, since they were improvised to overcome temporary
+obstacles. But, apart from their intrinsic interest as episodes in one
+phase of the war and as evidence of the efficacy of Sea Power, these
+devices merit practical attention in view of proposals to fasten
+economic fetters upon Germany by the terms of peace, and in view of the
+odium which may tell against German commerce for years to come. German
+business men are preparing to meet these difficulties by continuing the
+method of exporting through neutral agents, and are proposing in some
+cases to transport to a neutral country the work of completing
+manufacture, in order that goods so produced may appear to be
+indisputably of non-German origin; and the Foreign Trade Department at
+Berlin has advised German merchants to employ, for some years after the
+war, travellers and agents who can pass as French or English. It would
+be unwise to underrate any instance of German inventive persistency.
+
+Before the United States came into the war, that country was the channel
+of much German trade with Latin America. That road is now closed. The
+United States Government has gone further. It refuses coal in North
+American ports to ships proceeding from South America to neutral
+countries in Europe, unless the innocence of the cargo can be
+conclusively proved. This regulation shows that the United States
+authorities have knowledge that the ultimate destination of much South
+American cargo, particularly from the Argentine Republic, has been
+Germany. The blockade becomes more stringent through the co-operation of
+the United States and of Brazil, and through the action of the statutory
+list of "persons and firms with whom persons and firms in the United
+Kingdom are prohibited from trading." British commerce is a big and
+living thing, and the prohibition hits very hard any firm placed on this
+Black List. One finds here not only Teutonic names, but also
+innocent-sounding Latin names: for if a Latin-American is found to be
+acting as agent or cloak for a German trader, he finds himself pilloried
+on the Black List beside the German. There are obvious ways of evasion.
+The name of a clerk or door-keeper or a lady type-writer may appear as
+consignee. A varied ingenuity has to be met by constant watchfulness,
+and the list is regularly altered and kept up to date. The Black List
+has been much criticised for omissions, which are sometimes due to
+motives of expediency. But the bitter complaints about its injustice are
+unsolicited testimony to its efficacy. A striking example of its working
+was manifested in September 1917. After the outbreak of war, such of the
+Chilian nitrate works as were owned by Germans were unable to sell their
+nitrate or even to obtain jute bags, the supply of which is in British
+control. The unsold stocks went on accumulating, until one by one the
+German nitrate works were compelled to close down. Long negotiations
+between Santiago and Berlin found at last a remedy for this waste. It
+was agreed that the large deposits of Chilian gold in Germany should be
+set against the German-owned nitrate in Chile. The Chilian Government
+bought the nitrate, and paid the German owners by drafts on Berlin,
+which were met out of the Chilian money deposits in Germany. Thus
+Germany received Chilian gold in exchange for the inaccessible nitrate,
+while the Chilian Government received nitrate in exchange for its
+inaccessible gold. Chile then sold the nitrate for American gold to the
+largest manufacturer of explosives in the United States. Thus, one
+result of the blockade and the statutory list is that this German
+nitrate goes to make munitions, to be hurled at the Germans on the
+French front from American guns. The German Government, by sanctioning
+this sale of explosive material to its enemies, gave evidence of its
+earnest desire to stand well with Chile. On the other hand, Germany was
+impelled to this agreement in order to obviate grave financial loss to
+Germans and especially to save a big Hamburg firm from disaster.
+
+The active entry of Brazil into the war has in great part superseded the
+action of the statutory list in that country: for Brazil has taken
+decisive measures towards Germans within her borders. All enemy
+enterprises are in the hands of government receivers. All contracts for
+purchase of coffee or other Brazilian products by Germans are null and
+void; and in cases where payments had been made by the German
+purchasers, all such payments must be handed over to the official
+receivers. The United States also publishes a Black List of firms with
+whom her citizens are forbidden to deal. Evasion of allied watchfulness
+becomes more and more difficult: yet ingenious, and sometimes successful
+efforts are made to find loopholes in the wall of the blockade.
+
+There are now in Buenos Aires nearly 150 Turkish firms--Levantines of
+every denomination, Mohammedan, Christian, Jewish. Some of these are
+long-established and well-reputed houses. But most of them have sprung
+up during the war. Some of them, starting with exiguous capital, have
+made large fortunes in a year or two of trade. This has been done by
+supplying to German black-listed firms goods imported direct from
+Manchester and Bradford. Through the close co-operation of the German
+bank with German trade, these Syrians and Armenians are enabled, by the
+Germans standing behind them, to pay cash against documents in place of
+the usual sixty to ninety days' credit, and thus have a great advantage
+over the British or allied trader. The British authorities now permit
+export only to certain registered Turkish firms. The restriction does
+something to limit the abuse of this kind of trading.
+
+Besides these ingenious efforts to keep open communication with Europe,
+there is another side of the commercial war. In the neutral states of
+Latin America the German business man is as ubiquitous and energetic as
+ever, nay more so as he has greater difficulties to contend with. So far
+as he can, he sells from accumulated stocks of German goods, for the
+German importing houses before the war had gathered great stocks,
+especially in Chile. Where this resource fails, he repairs his stock by
+buying anywhere. Up to April 1917 he bought largely in New York. Now he
+buys where he can and what he can--American goods, French goods, British
+goods--anything to hold the market until the ocean shall be free once
+more to German keels carrying German goods.
+
+From the Argentine Republic 6000 young Englishmen came home to serve
+Britain on the fields of France. The young German would have found
+difficulty in getting home, even had he wished to do so; so for the most
+part he stayed in the River Plate. Other Germans have been released from
+military service and sent out as commercial travellers; for the German
+Government regards this too as National War Service. Thus today there
+are three German commercial men in the River Plate to one Englishman.
+The resources and confidence of the German traders are surprising. They
+have bought great quantities of wool in the River Plate--not so much
+indeed as is generally supposed; for German emissaries, in order to
+force up the price of wool to the Allies, have methodically made
+specious but fictitious offers of high prices to sheep-farmers all over
+the Argentine Republic. Yet, even so, German traders hold large
+quantities both of wool and of grain. These have been purchased partly
+for selling at enhanced prices on the spot, but principally with a view
+to after-war trade and the supply of raw materials to Germany. These
+purchases are proof of firm belief in the future. Moreover, both in
+Chile and in Argentina the interned German ships await their after-war
+cargoes for Europe. And when the Chilian or Argentine asks whether the
+German will be free to use these ships when peace comes, the Englishman
+cannot reply. The ships are there, proof of Germany's future power to
+trade.
+
+And the Germans are active not only in trade. They have learnt from
+British example that the road to business in Latin America is the
+investment of capital. And, strange as it may seem, the German has
+peculiar opportunities of investment at the present time. Such limited
+trade as can be carried on yields great profits. There is difficulty
+about remitting funds to Germany; and in any case "victory war loans"
+and other investments in the Fatherland may seem less attractive than
+investments in those Latin-American lands which look forward to rapidly
+expanding prosperity after the war. Accordingly, the German merchant is
+not only buying raw materials; he is also taking a share in the movement
+of home manufactures which now offers peculiar opportunities to foreign
+enterprise. Moreover, German firms in Buenos Aires have invested largely
+in short loans to the Argentine Government. Besides these private
+investments, which, like all German activities, have their official
+side, loans have been repeatedly pressed on the Argentine Government,
+ostensibly by neutral financiers (first in the United States and
+afterwards in Spain) but in fact by Germany, evidently for immediate
+political as well as for ulterior economic objects. These offers have
+been declined. A German loan openly offered to Uruguay has also been
+refused.
+
+Obviously, the whole story of German war-efforts in Latin America cannot
+yet be told. Enough has been said to indicate the character and the
+intensity of those efforts. For this far western front Germany has
+mobilised a business army, specially trained for the nature of the
+country and for the kind of operations wherein it is to be engaged.
+These efforts and aspirations are best illustrated by a recent utterance
+from the Hamburg branch of the League for Germanism abroad:--"We should
+like to insist that South America, the main field of our activity for
+many years past, constitutes a great sphere. Wide areas, with great
+possibilities of development, but little cultivated hitherto, are
+waiting to be opened up. It must be our business to employ here all our
+strength in order to retain and to make useful to ourselves these
+countries with their markets and raw materials. What we have to do is to
+_arm for the Peace_ and to collect money, in order to be able
+immediately to act with energy--with our whole strength and with
+adequate resources."
+
+       *       *       *       *       *
+
+In this "arming for the Peace" there is one weapon which demands special
+mention, namely the influencing of opinion by printed propaganda.
+
+The German mobilisation of the Press is a vast business controlled by
+the State. Upon the outbreak of war this organisation undertook the
+special work of war propaganda through two newly formed departments: (1)
+Press Office for influencing neutrals, (2) News Service for Spanish- and
+Portuguese-speaking countries. This institution of a special
+Ibero-American service proves the prominence given to the work in the
+Spanish- and Portuguese-speaking lands. The last words obviously include
+the Peninsula as well as Latin America. Nor can the propaganda carried
+on in Spain be dissociated from that in Spanish America. "Spain is the
+way to South America," writes a Spaniard discussing this very point. The
+popular illustrated Spanish prints _A.B.C._ and _Blanco y Negro_, which
+carry on a vehement Germanophil propaganda, are carefully perused, as
+coming from "home," by Spanish emigrants throughout Latin America, who
+thus become, half unwittingly, disseminators of German views and of
+belief in German victory.
+
+For the first object of this propaganda is to represent Germany as
+invincible in war. This military propaganda is an essential part of
+economic efforts. The Germans hold up a picture of German sagacity,
+system, thoroughness, efficiency. They desire to impress as well as to
+persuade. They know the effect produced by their victory in 1870. Credit
+and confidence are the greatest of commercial assets; and in this case
+economic credit is to rest upon belief in military strength.
+
+In South America, as in Spain, the method is to capture the press, and
+so disseminate German war-news, pro-German articles, photographs and
+cartoons. But it was not enough to control or inspire existing
+newspapers. In many capitals the Germans started new journals, printed
+in the vernacular. Naturally, the chief effort was made in Buenos Aires.
+Early in the war, a German organ, _La Unión_, was founded, in order
+that the Porteño, as he walked the street or travelled by train or
+tramway, might have the German case daily and forcibly presented to him.
+Throughout Latin America, a dozen or more of newspapers have been thus
+founded for propaganda purposes, some of them illustrated by effective
+cartoons. The strangest examples of this journalistic campaign are two
+Turkish newspapers, _La Bandera Otomana_ of Buenos Aires and _O Otomano_
+of São Pãolo, which urge the cause of the Central Powers among Orientals
+in those countries. Besides these purely German efforts, a host of
+newspapers, many of them the local journals of country towns, serve the
+German cause throughout Latin America, the newspaper offices sometimes
+acting as distributing agencies for periodicals printed in Germany in
+the Spanish tongue.
+
+For, besides German and Germanophil periodicals published in America,
+others are produced in Germany for circulation in those countries. The
+number and the excellent quality of these Spanish productions of the
+German printing-press are remarkable. _La Revista de la Exportación
+Alemana_ is a most effective organ for German business, exhibiting side
+by side, in pictures and letter-press, triumphs in the field and
+triumphs of industry. The monthly _Mensajero de Ultramar_ and the weekly
+_Heraldo de Hamburgo_ have been already mentioned. Hamburg also produces
+the well-known weekly picture-paper, _Welt in Bild_, with letter-press
+in twelve languages. These well-written and well-printed newspapers are
+widely circulated in Latin America in order to uphold the German cause.
+
+In addition to these permanent publications, special war periodicals are
+issued, every one of them a German trumpet. Not least of these is the
+comic paper _La Guasa Internacional_, which holds up the Allies to
+ridicule and abhorrence in cartoons, squibs and sketches. A diary of the
+war with a review of political and military movements is given in the
+illustrated monthly _Crónica de la Guerra_. Another chronicle is _La
+Guerra Europea Mirada por un Sud-Americano_, a piece of war propaganda
+written by a Latin-American soldier, Señor Guerrero, who was, until
+recently, Peruvian military attaché at Berlin. But perhaps the most
+effective of these war periodicals is _La Gran Guerra en cuadros_, which
+presents, in a series of pictures, the war as meant to be seen by
+neutral eyes. All these periodicals attribute economic blunders and
+financial errors or weakness to the Allies, sometimes making adroit use
+of British or French self-criticisms: on the other hand, they magnify
+German economic strength and organisation. This main object appears in
+an article on "After-war commercial relations between Spanish America
+and Europe" published in _El Mensajero de Ultramar_, which argues that
+Germany will suffer least of all the belligerents from the effects of
+the war; and that afterwards she will be the best purchaser and also the
+most capable provider for Latin America. Such is the reiterated refrain
+of a host of periodical publications.
+
+In addition to periodicals, Germany pours over the Spanish-and
+Portuguese-speaking world a constant inundation of fly-leaves,
+photographs, pamphlets, books and miscellaneous war literature,
+preaching German strength, efficiency, humanity, and even the democratic
+character of German institutions.
+
+What is the result? Has German propaganda succeeded in moulding
+Latin-American opinion concerning the war? Opinion in those countries
+has been moved by an argument more potent than all the German
+propaganda, and that is the German submarine. The German offers to South
+America with one hand persuasive self-eulogies, while with the other
+hand he sinks her unarmed trading ships and drowns her sailors.
+Unrestricted submarine warfare and the barring of zones to navigation
+have drawn Brazil, by successive steps, into active belligerency, and
+have done much to bring about rupture of relations and declarations of
+war by other Latin-American republics. Yet it would be a mistake to
+conclude that German propaganda has entirely failed. The Germans
+certainly think it worth while to continue it. The pavements of Buenos
+Aires are sometimes ankle-deep with pro-neutrality and anti-ally
+leaflets. But it is principally through the persistent and reiterated
+voice of the newspaper press, aided by the unremitting personal efforts
+of every German and every friend of Germany, that she wages this
+secondary warfare, this strategy of moral influence, which mobilises
+public opinion, diffuses impressions, colours events, creates an
+atmosphere.
+
+A circular was lately issued to the German League in Chile urging that,
+if propaganda could delay the severance of diplomatic relations between
+Chile and Germany, even for a few weeks, it would help Germany and her
+allies to an extent of several millions, and cause damage to her enemies
+to the same amount. As the situation becomes more critical for Germany,
+her propaganda redoubles in intensity. "Public opinion," says Napoleon,
+"is a force invisible, mysterious, irresistible." The Germans recognise
+that force, and have done all that was in their power to sway it to
+their side. German persuasiveness has not wholly failed. But in this war
+of words one decisive word has yet to be spoken, and that word is
+Victory.
+
+Yet military victory is not the final word in the economic struggle nor
+in the propaganda used in its support. The German South American
+Institute urgently emphasises the need of a more thorough and more
+stable system of German news supply: and official steps are now being
+taken in Germany to consolidate and extend such a system, in order to
+provide a permanent support of German influence in the future. The
+present aim of her propaganda is not only to exhibit victories, but to
+prepare for possible defeat, while representing Germany as morally
+invincible and as able, in any event, not only to hold her own, but to
+extend and strengthen her position.
+
+
+
+
+CHAPTER IV
+
+THE RECOGNITION OF LATIN AMERICA
+
+
+It has been necessary to speak at some length of the direction taken by
+German activities with regard to Latin America. In order to preserve due
+perspective, something should be said about activities on the part of
+others. For the German has no monopoly of intelligence and energy in
+these matters. Indeed, the methods of the various German Leagues for
+Latin America mentioned in the second chapter were prompted, in part at
+least, by observation of what was being done elsewhere, particularly in
+France and the United States: for all these matters are carefully
+watched in Germany, and are described in minute detail in the
+publications of those leagues.
+
+An American historian remarks that Europe and the United States have
+lately re-discovered Latin America; and a German observer describes
+South America as the Fair Helen of the business world--her charms
+admired and her favours sought by all industrial nations. These epigrams
+point to a comparatively recent movement, which might be described as
+the Recognition of Latin America. This is not a sudden new departure,
+for relations between those countries and Europe have been continuous.
+But, in the past, there has been much indifference and ignorance
+regarding these matters, except among those directly concerned in them.
+In recent years a fresh spirit has arisen, an enlivened interest and a
+desire for better knowledge and more cordial intercourse. The movement
+is natural and spontaneous rather than official. It owes little--at all
+events in Europe--to governments and chanceries, although these
+recognise its value and give it their countenance.
+
+It was pointed out above that French thought and French example have
+always exercised a profound influence on the Latin-American republics.
+Until recently, this influence made itself felt without much conscious
+observation or deliberate activity on the part of Frenchmen. Indeed,
+there was sometimes a disposition, which was not unknown in England
+also, to view the Latin-American in a satirical light. A changed
+attitude in France--a desire for cordial and equal intercourse--took
+definite shape in the formation of the Comité France-Amérique in 1906
+under the presidency of M. Gabriel Hanotaux. The objects of this society
+are to develop economic, intellectual and artistic relations between
+France and the nations of the New World, to attract students and
+travellers to France from the two Americas and welcome them cordially,
+to encourage every means of making France and America known to one
+another. The society soon numbered over 1000 members, and proceeded to
+found branches in Latin-American capitals, as well as in the United
+States and Canada. It publishes a monthly review entitled
+_France-Amérique_, dealing with every branch of life in the two
+Americas, and has formed a sub-section known as Ligue française de
+propagande, to spread in America a knowledge of French education and
+art, as well as French industrial products. The society has published a
+number of books concerning the history and present conditions of
+American countries.
+
+The same year, 1906, saw the foundation of the Groupement des
+Universités et grandes Écoles de France pour les relations avec
+l'Amérique Latine. This academic association, though it does not ignore
+the business side of foreign relations, is naturally more concerned with
+educational and intellectual matters. Its activities appear in the
+visits of French professors and lecturers to Latin-American capitals,
+the reception of Latin-American students in France, the study of
+Spanish-American history, literature and archaeology in French
+Universities, and in one apparently trivial but very practical
+detail--the reduction by one half of French Steamship Companies' fares
+to Latin-American students visiting France.
+
+The economic side of this French movement appears in the institution of
+a "Latin-American week," a kind of festival for propaganda and
+intercourse, to be celebrated annually in some great business centre of
+France. The inaugural seven days' meeting was held at Lyons in December
+1916. Sixty Latin-American delegates were present, and were met by 200
+French delegates from Paris, among them leading men representing every
+side of French life. The conference discussed every aspect of the
+relations between France and Latin America, and the means of extending
+and improving those relations.
+
+The cordiality of intercourse finds its most pleasant manifestation in
+the frequent visits to South America of distinguished Frenchmen--among
+them have been Anatole France and Clemenceau--who carry messages of
+sympathy across the Atlantic to crowded and enthusiastic gatherings in
+Latin-American cities.
+
+In the United States this double movement, intellectual and economic, is
+still more marked. Latin-American history and economics are regularly
+taught in the universities, and prizes are provided for essays on
+historical works on those lands. Harvard University has a special
+endowment for Latin-American studies, an Instructor in Latin-American
+history and a South American Library of 10,000 volumes; and the
+University, in order to encourage the entry of Latin-American students,
+dispenses with the use of the English language in the Entrance
+Examination in certain cases. The Jesuit traveller, Father Zahm, better
+known by his pen-name of Mozans, has presented his South American
+library to Notre Dame University, Indiana. The Rector of the Leland
+Stanford Junior University places at the disposal of the University his
+library of 7000 volumes on Brazil. Scholarships are granted in the
+Universities to Latin-American women students. In the year 1913,
+Latin-American students in American universities numbered 813. American
+scientific missions are at work in Latin America, as well as missions of
+teachers to study educational methods in those lands and to invite
+return visits to the United States. One hears, moreover, of a
+Spanish-American Athenæum at Washington, 2000 institutions teaching the
+Spanish language, 1700 clubs formed for the study of Latin America, new
+magazines dealing exclusively with those regions, Argentine men of
+letters received with an honoured public welcome, an Inter-American
+Round Table, founded by representative ladies of New York, who propose
+to hold annual meetings of women, to take place successively in the
+capitals of the American Republics.
+
+This educational and social movement accompanies and supports a great
+business effort directed towards Latin America. The latter has an
+obvious bearing on the subject of Pan-Americanism, which is treated in a
+later chapter: but it is convenient to indicate the facts here, as
+forming part of a general movement of approach by other peoples towards
+Latin America. The American business effort assumed concrete form at the
+beginning of the war, when the United States Government invited the
+Finance Ministers and leading bankers of all the American Republics to a
+Financial conference at Washington. All but Mexico and Haiti accepted.
+The conference met in March 1915. A committee was appointed for each
+republic, and their reports were submitted to a joint committee. The
+decisions so reached were unanimously accepted by the whole conference.
+They recommended a standard gold coin for the whole of America, also
+unification of regulations concerning classification of merchandise,
+customs, consular certificates and invoices, trade marks and kindred
+matters. Questions of banking facilities, transport and credit were also
+discussed.
+
+Furthermore, it was decided to institute an International High
+Commission, which should continue permanently the work of the
+conference, sitting in rotation in the capitals of the several
+republics. This commission met first in Buenos Aires in April 1916, and
+decided to create a Central Executive Council to consist of three
+members, namely the chairman, vice-chairman and secretary of the section
+representing whatever country should be at the time the headquarters of
+the High Commission. On the motion of Argentina it was unanimously
+agreed that the headquarters for the first year should be Washington.
+Thus the first Central Executive Council consisted of three North
+Americans, the three heads of the United States section of the
+International High Commission.
+
+During the last three years, North American capital has been poured into
+Latin America, notably into Brazil, although perhaps the most striking
+instance is the acquisition of three huge and profitable mining
+properties in Chile, producing copper and iron. American commissioners
+are studying the field; direct steamship communication between the two
+continents has been extended; and American banks have been opened in
+many South American cities. It is remarkable how large a space is given
+day by day to Latin America in the Daily Commerce Report and List of
+Trade Opportunities published by the United States Bureau of Foreign and
+Domestic Commerce. Meanwhile the Pan-American Union, housed in a
+magnificent palace at Washington, labours unceasingly to draw closer the
+political, economic, social, and intellectual relations.
+
+But in other directions, indeed in all directions, Latin-American
+economic and international relations are opening out and finding new
+roads. Canada has earned a high reputation by her industrial
+enterprises, and Canadian banks are being established in South American
+capitals. The Dutch too are opening banks and preparing to extend their
+trade. Japan, also, is drawing closer to this new Europe of the western
+hemisphere. Japanese immigration is increasing, not only to the
+republics of the Pacific coast, but also to Southern Brazil. The
+Japanese steamship service to the west coast has been extended, and
+lines of Japanese ships are now running, also, to Buenos Aires and Rio.
+Industrial Japan aims at substituting for German trade the production of
+goods formerly imported from Germany, and Japanese pioneers are
+travelling in South America to study and prepare the ground. Japanese
+relations with Chile are particularly close and friendly. Chile can
+supply iron and copper, which Japan wants; and in return Chile is
+prepared to take Japanese cotton and silk. Kaolin or china clay was
+lately discovered in Chile: a specimen was sent to Japan for trial; and,
+as a result, a china factory has been started in Chile, the skilled
+labour being provided by Japanese artisans. Truly, the whole world is
+drawing nearer to South America.
+
+What of the British position? The British "re-discovered" Latin America
+more than a century ago. England, as well as France, was the school of
+Miranda and Bolívar. England provided the sinews of war for the
+emancipation of these lands, and the British legion which served under
+Bolívar was saluted by him, on the battle-field, as _Salvadores de mi
+patria_. South America honours the name of Cochrane among the heroic
+figures which stand upon the threshold of independence: nor has she
+forgotten how Canning's generous statesmanship helped her to secure the
+fruits of victory. One may read, in great part, the history of the
+struggle for independence in Memoirs written by Englishmen who took part
+in it. And in succeeding years the British held in those countries a
+peculiar position of gratitude and respect. The first Argentine foreign
+treaty was with Great Britain. Uruguay owes her independence, in part at
+least, to the intervention of British diplomacy, which was held in equal
+honour at Buenos Aires and in Rio. The founder of the Pacific Steam
+Navigation Company was an American, who, failing to find support in his
+own country, went to England, and there launched his great scheme of
+maritime trade on the Pacific coast. The same American, William
+Wheelwright, was the founder of the Argentine railway system, through
+English capital and enterprise. Over 1000 millions sterling of British
+capital are invested in Latin America in the form of government loans
+and corporate enterprises whose capital can be counted, without
+reckoning private investments, such as ownership of land. Total British
+investments in the Argentine alone exceed 500 millions sterling. The
+British created the Chilian nitrate industry, in which Chilian and
+British ownership are now about equal. Our fathers and grandfathers
+dared much, risked much, lost much and gained much in Latin America, and
+have left us an unrivalled reputation for good work and steady
+integrity. _Palabra de Inglés_, "the word of an Englishman," is still a
+proverb throughout those countries.
+
+Yet there is truth in the remark of a German author that the British
+have made no "cultural efforts" in Latin America. They are viewed with
+respect rather than with an intimate cordiality which they have not
+sought. It has been said that an Argentine takes off his hat to an
+Englishman, but tucks his arm in that of a Frenchman. This absence of
+deliberate effort does not mean the absence of moral influence. An
+official of the Pan-American Union remarked to the present writer that
+the English had done a "wonderful work" in Argentina by introducing and
+spreading the game of football, which had taught lessons of fair play,
+voluntary disciplined combination and good humour in defeat. The Boy
+Scout movement has taken root throughout Latin America, holding up
+everywhere in the spirit of its work and in local Scout papers a high
+standard of honour, truthfulness and conduct. These are some examples of
+a widespread influence exerted by certain sides of English life and
+character. Yet a certain atmosphere of aloofness still envelopes the
+British in Latin America, and this attitude is reflected in England. The
+languages and the history of those lands have not received their due in
+our schools and colleges. It has been comparatively rare to find in this
+country a keen and well-informed interest in matters wherein our own
+people have had a far greater share than our neighbours on the European
+continent or in the United States. What is wanting is a breath of
+enthusiasm for a most picturesque past, a present situation of absorbing
+interest, and the prospect of a future which promises boundless
+possibilities.
+
+Yet the movement of recognition is making way among us. The number of
+descriptive books published in recent years concerning those countries
+points to a reviving interest. Our schools are providing Spanish
+classes: our universities are founding professorships or lectureships in
+the Spanish and Portuguese languages, and the study of Latin-American
+history is finding admission to its due academic place. We are beginning
+to perceive that the life of those countries touches us closely, and
+that some knowledge and thoughtful interest concerning them should be
+part of the mental equipment of an educated Englishman. Moreover, the
+recent establishment of an Anglo-Spanish Society and also of an
+Anglo-Portuguese and Brazilian Society indicates a growing disposition
+for sympathetic and reasonable intercourse with the peoples of the
+Ibero-American lands.
+
+It would be out of place here to talk of this or that defect in British
+business methods or to suggest possible amendments. Such matters may be
+left to business men. Mr Herbert Gibson, in the fascinating address
+which he lately gave in King's College, London, sets the matter on a
+higher plane. "I do not think," he says, "it is so much a question of
+this or that system of weights and measures, or of the insularity of our
+classes of goods, as a question of a more intimate and sympathetic
+understanding between the peoples themselves. Trade can no doubt go on
+without such an understanding; but, where it exists, commercial as well
+as political, social and intellectual relations are strengthened. It
+seems to me that where our relations with South America have weakened or
+at least where they have not progressively increased, is in that
+man-to-man understanding and sympathy that opened the doors of all South
+America to our grandfathers."
+
+
+
+
+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?
+
+
+
+
+CHAPTER VI
+
+PAN-AMERICANISM
+
+
+The relations of Latin America with the United States are chiefly
+connected with those tendencies of United States policy which are
+associated with the name of Monroe. A survey of the Monroe Doctrine
+would here be out of place: but the main points bearing on the present
+situation may be indicated. The injunction imposed in 1823 by President
+Monroe upon European interference in America was intended to meet
+certain European designs which at that time seemed to endanger the
+"peace and safety" of the United States. But Monroe's declaration,
+although its immediate purpose was self-defence, involved a permanent
+protest against any European aggression in Latin America, and thus set
+up the United States as self-constituted champion of those countries.
+Such a position involves a certain superiority of attitude and cannot be
+very clearly distinguished from protection; and protection is apt to
+merge by gradual steps, often only half perceived and not deliberately
+intended, into Protectorate. Thus, the development of the Monroe
+Doctrine has followed two parallel lines of policy, protection against
+Europe and national self-assertion. This latter more positive aspect has
+impressed itself upon the public mind. The advances in the Caribbean
+region, which have been mentioned in the first chapter, were undertaken
+not in order to satisfy any doctrine or theory, but to satisfy the
+irresistible needs of a vigorous growing Power. But since, for a
+generation past, it has been expected of American statesmen that they
+should justify their orthodoxy as adherents of this doctrine, these
+steps towards protectorate or dominion have been explained in a series
+of public pronouncements as developments or examples of the doctrine.
+Naturally, therefore, the term "Monroe Doctrine" is popularly understood
+as connoting an imperial policy, a movement towards supremacy or
+hegemony.
+
+In any case, the obvious comment on the Monroe Doctrine is that it has
+indeed protected the American republics from European aggression, but
+has not protected them from American aggression. It has not protected
+Peru from Chile nor Mexico and Colombia from the United States. Again,
+it is a uni-lateral arrangement announced by one Power alone, on the
+assumption that this action would be taken for granted by the other
+American republics. This attitude does not entirely commend itself to
+those states, especially as they grow stronger and more conscious of
+their strength. American business men plainly assert that the Monroe
+Doctrine is bad for business[4], and warn their countrymen against
+straining after a fictitious inter-American sentiment--an attitude which
+"is often a cause for resentment, the more felt because seldom expressed
+by the courteous Latin[5]." An article in the Pan-American Bulletin for
+December 1917 deserves particular attention. It cleaves through the
+difficulty by declaring, on the authority of Mr Root, that the Monroe
+Doctrine today means no more than what President Monroe meant a century
+ago: "The Monroe Doctrine is an assertion of the right of self-defence,
+that and nothing more. France and Britain are in the field to protect
+their Monroe Doctrine, the sovereignty and independence of Belgium ...
+there is nothing here ... in any way derogatory to the full sovereignty
+and independence of even the smallest of the Latin-American countries.
+It is true that the first proclamation of the Monroe Doctrine carried
+with it an implied offer of aid to the newly liberated Spanish-American
+colonies against proposed aggressions by the Holy Alliance.
+Self-protection was the motive ... it counts for nothing against a set
+purpose to defend one's own house that in so doing one performs an act
+by which one's neighbour is likewise defended." The article concludes by
+declaring that the Monroe Doctrine still prevails, strictly limited to
+its original sense, and that Pan-Americanism is an entirely distinct
+policy, which must not be confused with it.
+
+This re-statement of the Monroe Doctrine in its original terms, this
+declaration that United States policy is just like that of other
+nations, was probably prompted by the sense that the later developments
+of the Monroe Doctrine hindered the economic propaganda which is the
+main business of the Pan-American Union. But it has been further argued
+that the great war has exposed the weakness of Monroism, since, in the
+event of a German victory, nothing but superior force could prevent
+German invasion and occupation in Canada or in any trans-Atlantic
+country which might be at war with Germany. The arming of the United
+States has in some degree answered this objection, which is perhaps as
+contingent and theoretical as the doctrine itself. But the war has
+certainly emphasised the fact that emergencies must be met and settled
+as they arise, and that, since they cannot be foreseen, they cannot be
+covered by pre-conceived theories. At any rate a sentiment has for some
+time been gaining force that the inter-American policy of the United
+States calls for some kind of revision or re-statement; and the solution
+is sought in "Pan-Americanism."
+
+In seeking a definition of that phrase, European analogies will scarcely
+help us. The word "Pan-Germanism" usually implies some common action or
+interest among all those who speak the German language, and suggests
+some kind of racial bond or sense of kindred. The word "Pan-Slavism"
+appears to mean common action or interest among all who speak the Slav
+tongues, and similarly suggests some ethnological bond of kinship.
+Obviously Pan-Americanism must mean something quite different, for the
+American differs from his nearest southern neighbour, the Mexican, more
+widely than the Norwegian differs from the Greek. Moreover,
+"Pan-American" is a term of recent origin and still somewhat fluid in
+its application. It has sometimes been used merely as the equivalent of
+"European" or "Asiatic"; for the word "American" commonly bears a
+national sense and there is no convenient and accepted term covering the
+two Americas. For example, Mr Taft in his Presidential message of 1909
+spoke of "our Pan-American policy" much as a British Prime Minister
+might speak of "our European policy."
+
+Thus, the obvious application of the term is geographical. Yet Americans
+of authority are fully aware of the need of reservation in this
+geographical application. In 1909, the Director of the Pan-American
+Union pointed out, with some mortification, that on the occasion of the
+Pan-American Congress at Buenos Aires, most of the delegates from the
+north found that the easiest route from the chief city of North America
+to the chief city of South America lay through Europe. And an eminent
+American economist[6] has lately uttered a warning against geographical
+misapprehensions, explaining that, whereas the Panamá Canal makes the
+west coast of South America an extension of the east coast of the United
+States, nevertheless the bulk of the South American population lives
+upon the Atlantic coast and prefers its traditional, customary and
+natural intercourse with Europe.
+
+But in considering the meaning of an incipient and growing force, it
+would be a mistake to dwell on possible limitations and difficulties;
+and it would be pedantic and unpractical to demand precise consistency
+or exact definition. We are rather concerned with aspirations,
+tendencies and formative ideas. Indeed, it might fairly be argued that
+these limitations, which are fully realised and avowed in North America,
+are no argument against the Pan-American movement, but rather an
+argument in support of it, as being a prudent and wholesome effort to
+overcome existing obstacles and promote a better understanding between
+neighbours.
+
+Pan-Americanism may be described as the movement which aims at uniting
+all the American republics:--one cannot say all the American countries;
+for in the map printed on the cover of the Pan-American Bulletin, Canada
+is left blank, as not forming part of "Pan-America." This omission alone
+is enough to prove, if proof were needed, that there is something
+artificial about Pan-Americanism: for obviously a New Yorker is more at
+home in Toronto or Halifax than in Rio or Buenos Aires; and there is a
+closer political similarity as well as a closer political bond between
+Washington and Ottawa than between Washington and Caracas. But, after
+all, most political combinations are largely artificial: they are
+products of statesmanship rather than of nature, or at all events they
+are products of nature assisted by statesmanship. And Pan-Americanism
+need not be less real or less valuable for being a construction
+deliberately planned instead of a spontaneous organism. But since the
+Pan-American movement is artificial, and a matter of policy and
+management, still rather formless, Americans of both continents differ
+considerably both as to its meaning and its usefulness, some declaring
+that it means nothing and is useless or even mischievous, while others
+regard it as a kind of perfect circle embracing all the future.
+
+Dr Usher, the American historian, dismisses the whole notion, on the
+ground that the United States and Latin America are utterly unlike,
+unsympathetic and even antipathetic to one another. Against this
+conclusion may be quoted two opinions from Chile and from Colombia, the
+two South American countries which have in the past shown most
+resentment at North American pretensions. "We want no papa" exclaimed a
+Chilian public man some years ago: yet in 1910 Señor Echeverria, Chilian
+consul in London, in a public lecture declared himself a decided
+believer in the benefits of Pan-Americanism, and as disposed to accept
+the sincerity of North American pacific and non-aggressive professions:
+and in the same year Señor Pérez Triana, the Colombian diplomatist,
+expressed a restrained but decided optimism concerning the benefits to
+be derived from the Pan-American Congresses, and pointed out that they
+had already brought about the general acceptance of the principle of
+arbitration among American Governments. These favourable views have
+regard to the practical benefits to be found in a certain course of
+action. The destiny of Pan-Americanism depends on the question whether
+these practical benefits are strong enough to overcome the barriers of
+race, language, religion, law, customs and tradition.
+
+The objections based upon these obstacles to union is not quite
+convincing. Incompatibility of temper is a bar to marriage: it is no bar
+to a practical and thoroughly friendly business understanding supported
+by mutual respect and methods of give and take. The tendencies of the
+age favour large combinations, overstepping the bounds of nationality
+and sometimes cutting across the lines of kindred and tradition. The
+challenge of Central Europe has raised up such a combination in Western
+Europe, and may help to give birth to a fresh and large grouping of the
+Powers of the western hemisphere.
+
+The question occurs whether, apart from reasons of practical
+convenience, any fundamental basis can be found for the union of
+communities so dissimilar in character and in action. These republics
+have this at least in common: they have all started life in "new lands";
+they are all trans-Atlantic offshoots from European monarchies; they
+have all thrown off political dependence upon Europe; they have all
+adopted republican forms of government; and, to whatever extent some of
+them may avoid democratic or even republican methods, they have all
+rejected the hereditary principle in government. Moreover, before the
+present crisis they all cultivated, so far as possible, a certain
+political aloofness from Europe: and they all aim at pursuing a destiny
+distinct from and, in their belief, transcending that of Europe through
+the inexhaustible possibilities offered by a New World.
+
+What success has attended the United States in her recent policy of
+approaching Latin America? Here we are on delicate ground, and whatever
+view be expressed is sure to meet with disagreement on the part of
+qualified judges. It is not easy to keep one's finger on the pulse of
+South American sentiment, nor can we expect to find unanimity. We can
+only watch indications and symptoms. In the past, on the whole, the
+attitude of the United States has been accepted in so far as it implied
+protection; but it has been warmly resented in so far as it seemed to
+imply any kind of protectorate. A certain arrogance in the public
+pretensions of the United States has been felt to be an offence and a
+menace; and this feeling has been intensified by the bearing of
+individual Americans. Yet a representative Chilian, Señor Vildósola,
+writing since the outbreak of the war, says, "The United States was not
+popular in Chile; her political attitude was rude and overbearing (_une
+politique brutale_); but in the past ten years this is changed. The Big
+Stick is relegated to the cellars of the White House. A certain
+refinement of forms has appeared in the Secretaryship of State, and a
+deeper knowledge of the peoples of the continent has induced the
+Government, press and people of the United States to treat Chile and her
+neighbours with a new respect and consideration." It may here be noted
+that Chile has lately entered into close economic relations with the
+United States, through the American acquisition of great mining
+properties in Chile and through the export of nitrate and copper to
+North America, largely carried in Chilian government transports.
+
+A representative Brazilian lately remarked to the present writer, "I
+believe there is no danger at all from the United States" and, referring
+to the preferential tariff granted by Brazil to certain imports from the
+United States, he added, "The Americans admit our coffee free, and we
+grant this abatement in return. They tax imports of things that they
+produce, and admit free the things they cannot produce. You English are
+different. You tax our coffee: you tax things you cannot produce and let
+in free the things you can produce." There can be no doubt that these
+close commercial relations and recent large American investments in
+Brazilian industries conduce to this tentative entente with the United
+States.
+
+The relations of the A.B.C. countries seem to indicate similar
+tendencies. It is probable that the main object, which led these three
+republics to entertain proposals of alliance, was security against
+possible danger from the United States. As these apprehensions
+diminished, the proposals were shelved, and the A.B.C. resolved itself
+into its component alphabet. There was another not less interesting
+reason for this dissolution: the proposed combination of the stronger
+South American states was not welcomed by the other republics, which
+felt that an arrangement of this kind did not favour the union and
+harmony of the whole continent, even though the professed intention was
+that it should serve as a nucleus which might gradually win the
+voluntary adhesion of other republics.
+
+Again, those republics which have been drawn closely under the influence
+of the United States, threw in their lot with her by declaring war
+against Germany--a decision which seems to be an act of gratitude, and a
+recognition that their position of dependence is not felt to be irksome
+or degrading.
+
+A recent act of the small but sturdy Republic of Uruguay seems to be
+very significant. After first severing relations with Germany and then
+rescinding her declaration of neutrality, Uruguay decreed that "No
+American State, if engaged in a war against a European State in defence
+of its rights, shall be treated as a belligerent by Uruguay." There is
+something a little whimsical in this previous sweeping aside of all
+contingencies, and one may imagine circumstances where the
+interpretation of this decree might puzzle the legal advisers of the
+Uruguayan Foreign Office. But the whole-hearted comprehensive intention
+of the decree is obvious. Uruguay is prepared to go the whole way in the
+direction of Pan-Americanism, and opens her arms equally to all the
+republics of both American continents.
+
+The proposal to establish a Pan-American University at Panamá may be
+worth mentioning here. The suggestion sounds like a product of the
+tropical spirit of those regions; but it may yet take significant shape.
+
+The United States, before entering the war, had largely increased her
+trade with Latin America. She succeeded in supplying, in great degree,
+the gaps left by Germany and Great Britain. Her entry into the war has
+deprived her of part of that advantage. But, on the other hand, the
+final decision, the manner in which it was made, and the resolute way in
+which it is being pursued, have vastly strengthened the moral standing
+of the United States in the New World. Those Latin-American states which
+are dependent on her joined her as belligerents. The action of Brazil,
+though taken independently and inspired more by French than by North
+American sympathies, followed North American action and cannot be wholly
+dissociated from it. Most of the Latin-American states, by their
+attitude towards the war, have as it were mounted guard behind the
+Allies. But the United States stands embattled in front of her southern
+neighbours, to fight the monster which threatens them all. The United
+States now, at last, appears, not merely as the theoretic propounder of
+a protection which was really ensured by the assent of Great Britain and
+the strength of the British fleet, but as the active champion in a
+common cause. This position has been strengthened by President Wilson's
+solemn disavowals of any aggressive intention. These promises have
+produced a marked impression in South America.
+
+The war has brought into view another practical reason for a closer
+inter-American understanding. As long as the United States remained
+neutral, no other American state, such as Brazil, could have incurred
+the risk of entering the war. In the past, while South American
+countries were able to keep apart from European politics, this
+complication or hindrance was latent and remote. But the period of
+aloofness is closed, and the American republics are taking their place
+among the nations of the world. Some kind of permanent entente, some
+standing arrangement for exchanging views and adjusting policy, would
+seem to be the best means of obviating any friction or awkwardness
+between north and south in respect of external relations. Thus a closer
+understanding with the United States may be regarded as a necessary
+condition of closer relations with the rest of the world.
+
+Many who know South America well will dissent from the suggestion that
+the war is helping to mould into some kind of shape the rather shadowy
+scheme called Pan-Americanism. They will point to the fact that most
+South Americans would rather have dealings with a European than with a
+North American and will recall what has been said elsewhere, namely,
+that the two Americas, both historically and actually, face severally
+towards Europe and not towards one another. All this is true; yet there
+are signs that the tendency called Pan-Americanism, hitherto a rather
+unsubstantial vision, may become a reality, differing indeed from the
+picture traced by some North American prophets, but resting upon more
+solid bases. We have touched upon business relations and the machinery
+for carrying them on. As to political relations, the growing strength of
+the greater South American republics counts for much. They feel
+themselves to be in a position to say, "We do not want your protection;
+but we value your equal friendship; for we are Americans as well as you.
+And we are willing to group ourselves together for the preservation and
+protection of that America which is ours." An equal understanding
+between equals--provided it is not too formal at first, and is allowed
+to be moulded by the course of events--would probably meet with a fairly
+general assent, which might gradually win over those holding aloof at
+first. Something of the kind seems to be taking form at the present
+time. The ultimate result may be the formation of a Concert of America,
+in which the more tranquil and educated elements may guide the whole.
+President Wilson has suggested some such arrangement, and proposes a
+combination of American republics as the best security against
+aggression by one American Power upon another.
+
+From what has been said above, it is obvious that some of the Caribbean
+lands would enter such a combination as satellites or subject-allies of
+the United States. Such an arrangement is not unparalleled and does not
+seem impracticable, since these small states have already entered the
+war in that capacity. Obviously, Pan-Americanism cannot aim at precise
+symmetry or theoretical consistency. It must be an elastic system, and
+must be prepared to meet and overcome difficulties. That is the purpose
+of its existence. But in general the first condition of a Pan-American
+combination would seem to be the abandonment of any pretensions to
+hegemony by any one state. Such pretensions have shattered the Concert
+of Europe. But America is a younger Europe which may take example--and
+warning too--from that old Europe which has given her such institutions
+and such order as she possesses. Thus a New World may indeed arise to
+redress the balance of the Old.
+
+       *       *       *       *       *
+
+To the emancipation of Latin America Great Britain and the British
+contributed more than any other outside nation. In the subsequent
+development of those countries, Britain has had a large share. In the
+moral protection afforded to them by the attitude of the United States,
+the unostentatious and almost tacit support of Great Britain has counted
+for much. And those countries are now being drawn nearer to Great
+Britain and nearer to Europe than ever before. The question now
+arises:--In the closer grouping of American states now in process of
+formation, is Great Britain to stand aloof, a sympathetic but silent and
+inactive spectator? That this question has actually been raised in the
+United States, is shown by the following quotation from _The Times
+History of the War_ (chapter 222, page 9): "As the _Philadelphia Ledger_
+put it 'it seemed an absurdity to talk of Pan-Americanism and in the
+same breath to ignore the fact that one of the greatest of the American
+Powers is not included in it.' The _New Republic_ went further ...
+'Pan-Americanism,' it declared, 'is a tripod that cannot stand on two
+legs for ever. Only a combination of the Latin countries, the United
+States and Great Britain, that is to say a combination of all the
+American Powers, can make it a safe and useful organization in the world
+to-day.'"
+
+There is nothing new in this idea; for Bolívar, with singular
+magnanimity, invited Great Britain and the Kingdom of the Netherlands to
+send delegates to the Pan-American Congress which he attempted to
+assemble at Panamá in 1826: the circumstances of the time precluded an
+invitation to France. And now that Brazil and Cuba sit at the
+council-board of the Allies in Paris, a conception, which seemed
+feasible a century ago to a great imaginative mind, may perhaps not seem
+so very remote to a practical mind today. For the present epoch has
+brought home to all Americans of both continents a fact which has long
+been known to Canadians and Englishmen, namely that the ocean is no
+estranging gulf between nations. Today it is known that the geographical
+boundary which divides the peoples into two categories and separates the
+Old World of force from the New World of reason is not the Atlantic but
+the Rhine. Thus now, more than ever, does it seem a little incongruous
+that Washington should deny to Ottawa a community of American interests
+which is conceded to Caracas, Asunción and La Paz.
+
+Yet the scheme thus adumbrated is not at the present time clearly in
+sight. The inclusion of Canada would reverse the system which now
+confines Pan-Americanism to those states which have thrown off all
+political connexion with Europe together with all monarchical forms.
+Moreover, new and large combinations must keep within manageable limits.
+Yet it is significant that a Uruguayan public man, Señor Lopez Lomba, is
+now vigorously agitating, in Paris and in South America, for the
+formation of a Pan-Atlantic Union, wherein the three great Atlantic
+Powers, Britain, France and the United States, are to combine with the
+Latin-American states, in order to wield with full effect that economic
+weapon which is to decide the world conflict. A combination formed for
+an immediate purpose may well have further and larger results. It is an
+interesting speculation whether, in some not very remote future, the
+daughter nations of the Iberian Peninsula may not be drawn into a wide
+circle of understanding with Britain and her daughter nations. Thus,
+that grouping of the Latin and the Anglo-Saxon peoples, which has been
+formed under stress of war, might continue its beneficent working
+through generations of peace. Portugal and Brazil, Great Britain and the
+United States stand side by side. Most of the daughter nations of Spain
+have ranged themselves in the same ranks, beside France, their
+intellectual foster-mother. Spain may yet re-discover herself and her
+true place in the comity of nations. At all events it is a great thing
+to have proved that the line dividing freedom from autocracy does not
+divide the peoples of the New World from their mother Europe, or
+preclude the whole of the former from joining any great international
+league such as the future may have in store for succeeding generations.
+
+FOOTNOTES:
+
+[4] Notably an article by Mr Pratt, Chief of the United States Bureau of
+Commerce, in the _Annals of the American Academy of Social and Political
+Science_.
+
+[5] Bulletin of the Pan-American Union, March 1918.
+
+[6] Mr Pepper, former Foreign Trade Adviser to the United States
+Government, writing in the _Annals of the American Academy of Social and
+Political Science_.
+
+
+
+
+LATIN-AMERICAN REPUBLICS
+
+
+DATES OF INDEPENDENCE
+
+The struggle of the Latin-American States for independence, viewed as a
+whole, extended from 1810 to 1824 and was marked by many vicissitudes.
+Buenos Aires, with most of the Argentine Provinces, practically achieved
+independence in 1810, but did not formally proclaim it till 1816.
+Paraguay detached herself both from Spain and from the Argentine
+Provinces in 1811. Spanish authority was overthrown in Montevideo in
+1814; but it was not until 1828 that that city was recognised as capital
+of an independent Republic, now known as the Republic of Uruguay. Chile
+practically achieved independence in 1818. New Granada, Venezuela and
+Quito were successively liberated from the Spaniards in 1819-22; and
+these three countries were united for a few years under the name of
+Colombia: but in 1829-30 this union broke up into the three Republics of
+Venezuela, Ecuador and New Granada (now known as Colombia). In 1824 the
+battle of Ayacucho gave independence to Peru; and the province of Upper
+Peru was formed into the Republic of Bolivia. The Brazilian monarchy
+became independent in 1821, and was converted into a Republic in 1889.
+Mexico became independent in 1821, and adopted Republican forms in 1823.
+The five provinces to the south-east of Mexico united in 1824 to form a
+Federal Republic under the name of Central America; but in 1839 this
+unstable union broke up into the five Republics of Guatemala, Honduras,
+Salvador, Nicaragua and Costa Rica. In consequence of events in France,
+the island of Haiti became independent in 1803; but Spain occupied the
+eastern part, Santo Domingo, in 1806 and held it for 16 years. The
+island formed one state from 1822 to 1844, in which year it was divided
+into the two existing Republics of Santo Domingo and Haiti. Cuba was
+separated from the Spanish monarchy and formed into a Republic in 1899.
+The province of Panamá seceded from Colombia in 1903 and became a
+separate Republic.
+
+       *       *       *       *       *
+
+Since external recognition is an essential condition of complete
+independence, it may here be added that in 1822 the United States
+recognised the independence of Colombia, Chile, Buenos Aires and Mexico;
+and in January 1825 Great Britain recognised the independence of Buenos
+Aires, Colombia and Mexico. This formal recognition was preceded by
+amicable intercourse, by the dispatch of consuls, by relations of a
+commercial and semi-official kind, and by diplomatic action which gave
+countenance and support to the insurgent governments.
+
+
+PRESENT STATUS (AUGUST 1918) AS TOWARDS THE WAR
+
+The following states have declared war with Germany: Brazil, Cuba,
+Panamá, Guatemala, Nicaragua, Costa Rica, Haiti, Honduras.
+
+Uruguay has broken off diplomatic relations with Germany, rescinded her
+edict of neutrality, offered the use of her ports to the warships of the
+Allies, and seized the German ships in her harbours.
+
+Peru has broken off relations with Germany, offered the use of her ports
+to the Allies and seized the German ships at Callao.
+
+Bolivia, Ecuador and Santo Domingo have broken off relations with
+Germany. The exact position of Santo Domingo is not easy to define.
+Since May 1916, the administration of that Republic has been practically
+controlled by the United States; and this intimate connexion with a
+belligerent power may perhaps be regarded as constituting a state of
+belligerency for the Dominican Republic.
+
+Mexico, Salvador, Venezuela, Colombia, Chile, Argentina and Paraguay
+maintain their neutrality and their diplomatic relations with Germany.
+
+
+
+
+    CAMBRIDGE: PRINTED BY
+    J. B. PEACE, M.A.,
+    AT THE UNIVERSITY PRESS
+
+
+
+
+[Illustration: SPANISH & PORTUGUESE SETTLEMENTS IN AMERICA]
+
+[Illustration: THE LATIN-AMERICAN REPUBLICS]
+
+
+       *       *       *       *       *
+
+Transcriber's Notes:
+
+Unusual punctuation and spellings retained when used consistently (for
+example, dispatch and despatch); otherwise changed to majority use, with
+the following exceptions:
+
+P. 24: Greek word transliterated ~apoikia~ appears as Greek script in
+original. See utf8 or html for original script.
+
+P. 76: hyphenated "to-day" retained, as quoted from other print source.
+
+P. 76: "organization" retained, as quoted from other print source.
+
+
+
+
+
+End of Project Gutenberg's South America and the War, by F. A. Kirkpatrick
+
+*** END OF THIS PROJECT GUTENBERG EBOOK SOUTH AMERICA AND THE WAR ***
+
+***** This file should be named 38793-8.txt or 38793-8.zip *****
+This and all associated files of various formats will be found in:
+        https://www.gutenberg.org/3/8/7/9/38793/
+
+Produced by Adrian Mastronardi, JoAnn Greenwood and the
+Online Distributed Proofreading Team at https://www.pgdp.net
+(This file was produced from images generously made
+available by The Internet Archive/American Libraries.)
+
+
+Updated editions will replace the previous one--the old editions
+will be renamed.
+
+Creating the works from public domain print editions means that no
+one owns a United States copyright in these works, so the Foundation
+(and you!) can copy and distribute it in the United States without
+permission and without paying copyright royalties.  Special rules,
+set forth in the General Terms of Use part of this license, apply to
+copying and distributing Project Gutenberg-tm electronic works to
+protect the PROJECT GUTENBERG-tm concept and trademark.  Project
+Gutenberg is a registered trademark, and may not be used if you
+charge for the eBooks, unless you receive specific permission.  If you
+do not charge anything for copies of this eBook, complying with the
+rules is very easy.  You may use this eBook for nearly any purpose
+such as creation of derivative works, reports, performances and
+research.  They may be modified and printed and given away--you may do
+practically ANYTHING with public domain eBooks.  Redistribution is
+subject to the trademark license, especially commercial
+redistribution.
+
+
+
+*** START: FULL LICENSE ***
+
+THE FULL PROJECT GUTENBERG LICENSE
+PLEASE READ THIS BEFORE YOU DISTRIBUTE OR USE THIS WORK
+
+To protect the Project Gutenberg-tm mission of promoting the free
+distribution of electronic works, by using or distributing this work
+(or any other work associated in any way with the phrase "Project
+Gutenberg"), you agree to comply with all the terms of the Full Project
+Gutenberg-tm License (available with this file or online at
+https://gutenberg.org/license).
+
+
+Section 1.  General Terms of Use and Redistributing Project Gutenberg-tm
+electronic works
+
+1.A.  By reading or using any part of this Project Gutenberg-tm
+electronic work, you indicate that you have read, understand, agree to
+and accept all the terms of this license and intellectual property
+(trademark/copyright) agreement.  If you do not agree to abide by all
+the terms of this agreement, you must cease using and return or destroy
+all copies of Project Gutenberg-tm electronic works in your possession.
+If you paid a fee for obtaining a copy of or access to a Project
+Gutenberg-tm electronic work and you do not agree to be bound by the
+terms of this agreement, you may obtain a refund from the person or
+entity to whom you paid the fee as set forth in paragraph 1.E.8.
+
+1.B.  "Project Gutenberg" is a registered trademark.  It may only be
+used on or associated in any way with an electronic work by people who
+agree to be bound by the terms of this agreement.  There are a few
+things that you can do with most Project Gutenberg-tm electronic works
+even without complying with the full terms of this agreement.  See
+paragraph 1.C below.  There are a lot of things you can do with Project
+Gutenberg-tm electronic works if you follow the terms of this agreement
+and help preserve free future access to Project Gutenberg-tm electronic
+works.  See paragraph 1.E below.
+
+1.C.  The Project Gutenberg Literary Archive Foundation ("the Foundation"
+or PGLAF), owns a compilation copyright in the collection of Project
+Gutenberg-tm electronic works.  Nearly all the individual works in the
+collection are in the public domain in the United States.  If an
+individual work is in the public domain in the United States and you are
+located in the United States, we do not claim a right to prevent you from
+copying, distributing, performing, displaying or creating derivative
+works based on the work as long as all references to Project Gutenberg
+are removed.  Of course, we hope that you will support the Project
+Gutenberg-tm mission of promoting free access to electronic works by
+freely sharing Project Gutenberg-tm works in compliance with the terms of
+this agreement for keeping the Project Gutenberg-tm name associated with
+the work.  You can easily comply with the terms of this agreement by
+keeping this work in the same format with its attached full Project
+Gutenberg-tm License when you share it without charge with others.
+
+1.D.  The copyright laws of the place where you are located also govern
+what you can do with this work.  Copyright laws in most countries are in
+a constant state of change.  If you are outside the United States, check
+the laws of your country in addition to the terms of this agreement
+before downloading, copying, displaying, performing, distributing or
+creating derivative works based on this work or any other Project
+Gutenberg-tm work.  The Foundation makes no representations concerning
+the copyright status of any work in any country outside the United
+States.
+
+1.E.  Unless you have removed all references to Project Gutenberg:
+
+1.E.1.  The following sentence, with active links to, or other immediate
+access to, the full Project Gutenberg-tm License must appear prominently
+whenever any copy of a Project Gutenberg-tm work (any work on which the
+phrase "Project Gutenberg" appears, or with which the phrase "Project
+Gutenberg" is associated) is accessed, displayed, performed, viewed,
+copied or distributed:
+
+This eBook is for the use of anyone anywhere at no cost and with
+almost no restrictions whatsoever.  You may copy it, give it away or
+re-use it under the terms of the Project Gutenberg License included
+with this eBook or online at www.gutenberg.org
+
+1.E.2.  If an individual Project Gutenberg-tm electronic work is derived
+from the public domain (does not contain a notice indicating that it is
+posted with permission of the copyright holder), the work can be copied
+and distributed to anyone in the United States without paying any fees
+or charges.  If you are redistributing or providing access to a work
+with the phrase "Project Gutenberg" associated with or appearing on the
+work, you must comply either with the requirements of paragraphs 1.E.1
+through 1.E.7 or obtain permission for the use of the work and the
+Project Gutenberg-tm trademark as set forth in paragraphs 1.E.8 or
+1.E.9.
+
+1.E.3.  If an individual Project Gutenberg-tm electronic work is posted
+with the permission of the copyright holder, your use and distribution
+must comply with both paragraphs 1.E.1 through 1.E.7 and any additional
+terms imposed by the copyright holder.  Additional terms will be linked
+to the Project Gutenberg-tm License for all works posted with the
+permission of the copyright holder found at the beginning of this work.
+
+1.E.4.  Do not unlink or detach or remove the full Project Gutenberg-tm
+License terms from this work, or any files containing a part of this
+work or any other work associated with Project Gutenberg-tm.
+
+1.E.5.  Do not copy, display, perform, distribute or redistribute this
+electronic work, or any part of this electronic work, without
+prominently displaying the sentence set forth in paragraph 1.E.1 with
+active links or immediate access to the full terms of the Project
+Gutenberg-tm License.
+
+1.E.6.  You may convert to and distribute this work in any binary,
+compressed, marked up, nonproprietary or proprietary form, including any
+word processing or hypertext form.  However, if you provide access to or
+distribute copies of a Project Gutenberg-tm work in a format other than
+"Plain Vanilla ASCII" or other format used in the official version
+posted on the official Project Gutenberg-tm web site (www.gutenberg.org),
+you must, at no additional cost, fee or expense to the user, provide a
+copy, a means of exporting a copy, or a means of obtaining a copy upon
+request, of the work in its original "Plain Vanilla ASCII" or other
+form.  Any alternate format must include the full Project Gutenberg-tm
+License as specified in paragraph 1.E.1.
+
+1.E.7.  Do not charge a fee for access to, viewing, displaying,
+performing, copying or distributing any Project Gutenberg-tm works
+unless you comply with paragraph 1.E.8 or 1.E.9.
+
+1.E.8.  You may charge a reasonable fee for copies of or providing
+access to or distributing Project Gutenberg-tm electronic works provided
+that
+
+- You pay a royalty fee of 20% of the gross profits you derive from
+     the use of Project Gutenberg-tm works calculated using the method
+     you already use to calculate your applicable taxes.  The fee is
+     owed to the owner of the Project Gutenberg-tm trademark, but he
+     has agreed to donate royalties under this paragraph to the
+     Project Gutenberg Literary Archive Foundation.  Royalty payments
+     must be paid within 60 days following each date on which you
+     prepare (or are legally required to prepare) your periodic tax
+     returns.  Royalty payments should be clearly marked as such and
+     sent to the Project Gutenberg Literary Archive Foundation at the
+     address specified in Section 4, "Information about donations to
+     the Project Gutenberg Literary Archive Foundation."
+
+- You provide a full refund of any money paid by a user who notifies
+     you in writing (or by e-mail) within 30 days of receipt that s/he
+     does not agree to the terms of the full Project Gutenberg-tm
+     License.  You must require such a user to return or
+     destroy all copies of the works possessed in a physical medium
+     and discontinue all use of and all access to other copies of
+     Project Gutenberg-tm works.
+
+- You provide, in accordance with paragraph 1.F.3, a full refund of any
+     money paid for a work or a replacement copy, if a defect in the
+     electronic work is discovered and reported to you within 90 days
+     of receipt of the work.
+
+- You comply with all other terms of this agreement for free
+     distribution of Project Gutenberg-tm works.
+
+1.E.9.  If you wish to charge a fee or distribute a Project Gutenberg-tm
+electronic work or group of works on different terms than are set
+forth in this agreement, you must obtain permission in writing from
+both the Project Gutenberg Literary Archive Foundation and Michael
+Hart, the owner of the Project Gutenberg-tm trademark.  Contact the
+Foundation as set forth in Section 3 below.
+
+1.F.
+
+1.F.1.  Project Gutenberg volunteers and employees expend considerable
+effort to identify, do copyright research on, transcribe and proofread
+public domain works in creating the Project Gutenberg-tm
+collection.  Despite these efforts, Project Gutenberg-tm electronic
+works, and the medium on which they may be stored, may contain
+"Defects," such as, but not limited to, incomplete, inaccurate or
+corrupt data, transcription errors, a copyright or other intellectual
+property infringement, a defective or damaged disk or other medium, a
+computer virus, or computer codes that damage or cannot be read by
+your equipment.
+
+1.F.2.  LIMITED WARRANTY, DISCLAIMER OF DAMAGES - Except for the "Right
+of Replacement or Refund" described in paragraph 1.F.3, the Project
+Gutenberg Literary Archive Foundation, the owner of the Project
+Gutenberg-tm trademark, and any other party distributing a Project
+Gutenberg-tm electronic work under this agreement, disclaim all
+liability to you for damages, costs and expenses, including legal
+fees.  YOU AGREE THAT YOU HAVE NO REMEDIES FOR NEGLIGENCE, STRICT
+LIABILITY, BREACH OF WARRANTY OR BREACH OF CONTRACT EXCEPT THOSE
+PROVIDED IN PARAGRAPH 1.F.3.  YOU AGREE THAT THE FOUNDATION, THE
+TRADEMARK OWNER, AND ANY DISTRIBUTOR UNDER THIS AGREEMENT WILL NOT BE
+LIABLE TO YOU FOR ACTUAL, DIRECT, INDIRECT, CONSEQUENTIAL, PUNITIVE OR
+INCIDENTAL DAMAGES EVEN IF YOU GIVE NOTICE OF THE POSSIBILITY OF SUCH
+DAMAGE.
+
+1.F.3.  LIMITED RIGHT OF REPLACEMENT OR REFUND - If you discover a
+defect in this electronic work within 90 days of receiving it, you can
+receive a refund of the money (if any) you paid for it by sending a
+written explanation to the person you received the work from.  If you
+received the work on a physical medium, you must return the medium with
+your written explanation.  The person or entity that provided you with
+the defective work may elect to provide a replacement copy in lieu of a
+refund.  If you received the work electronically, the person or entity
+providing it to you may choose to give you a second opportunity to
+receive the work electronically in lieu of a refund.  If the second copy
+is also defective, you may demand a refund in writing without further
+opportunities to fix the problem.
+
+1.F.4.  Except for the limited right of replacement or refund set forth
+in paragraph 1.F.3, this work is provided to you 'AS-IS' WITH NO OTHER
+WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO
+WARRANTIES OF MERCHANTIBILITY OR FITNESS FOR ANY PURPOSE.
+
+1.F.5.  Some states do not allow disclaimers of certain implied
+warranties or the exclusion or limitation of certain types of damages.
+If any disclaimer or limitation set forth in this agreement violates the
+law of the state applicable to this agreement, the agreement shall be
+interpreted to make the maximum disclaimer or limitation permitted by
+the applicable state law.  The invalidity or unenforceability of any
+provision of this agreement shall not void the remaining provisions.
+
+1.F.6.  INDEMNITY - You agree to indemnify and hold the Foundation, the
+trademark owner, any agent or employee of the Foundation, anyone
+providing copies of Project Gutenberg-tm electronic works in accordance
+with this agreement, and any volunteers associated with the production,
+promotion and distribution of Project Gutenberg-tm electronic works,
+harmless from all liability, costs and expenses, including legal fees,
+that arise directly or indirectly from any of the following which you do
+or cause to occur: (a) distribution of this or any Project Gutenberg-tm
+work, (b) alteration, modification, or additions or deletions to any
+Project Gutenberg-tm work, and (c) any Defect you cause.
+
+
+Section  2.  Information about the Mission of Project Gutenberg-tm
+
+Project Gutenberg-tm is synonymous with the free distribution of
+electronic works in formats readable by the widest variety of computers
+including obsolete, old, middle-aged and new computers.  It exists
+because of the efforts of hundreds of volunteers and donations from
+people in all walks of life.
+
+Volunteers and financial support to provide volunteers with the
+assistance they need are critical to reaching Project Gutenberg-tm's
+goals and ensuring that the Project Gutenberg-tm collection will
+remain freely available for generations to come.  In 2001, the Project
+Gutenberg Literary Archive Foundation was created to provide a secure
+and permanent future for Project Gutenberg-tm and future generations.
+To learn more about the Project Gutenberg Literary Archive Foundation
+and how your efforts and donations can help, see Sections 3 and 4
+and the Foundation web page at https://www.pglaf.org.
+
+
+Section 3.  Information about the Project Gutenberg Literary Archive
+Foundation
+
+The Project Gutenberg Literary Archive Foundation is a non profit
+501(c)(3) educational corporation organized under the laws of the
+state of Mississippi and granted tax exempt status by the Internal
+Revenue Service.  The Foundation's EIN or federal tax identification
+number is 64-6221541.  Its 501(c)(3) letter is posted at
+https://pglaf.org/fundraising.  Contributions to the Project Gutenberg
+Literary Archive Foundation are tax deductible to the full extent
+permitted by U.S. federal laws and your state's laws.
+
+The Foundation's principal office is located at 4557 Melan Dr. S.
+Fairbanks, AK, 99712., but its volunteers and employees are scattered
+throughout numerous locations.  Its business office is located at
+809 North 1500 West, Salt Lake City, UT 84116, (801) 596-1887, email
+business@pglaf.org.  Email contact links and up to date contact
+information can be found at the Foundation's web site and official
+page at https://pglaf.org
+
+For additional contact information:
+     Dr. Gregory B. Newby
+     Chief Executive and Director
+     gbnewby@pglaf.org
+
+
+Section 4.  Information about Donations to the Project Gutenberg
+Literary Archive Foundation
+
+Project Gutenberg-tm depends upon and cannot survive without wide
+spread public support and donations to carry out its mission of
+increasing the number of public domain and licensed works that can be
+freely distributed in machine readable form accessible by the widest
+array of equipment including outdated equipment.  Many small donations
+($1 to $5,000) are particularly important to maintaining tax exempt
+status with the IRS.
+
+The Foundation is committed to complying with the laws regulating
+charities and charitable donations in all 50 states of the United
+States.  Compliance requirements are not uniform and it takes a
+considerable effort, much paperwork and many fees to meet and keep up
+with these requirements.  We do not solicit donations in locations
+where we have not received written confirmation of compliance.  To
+SEND DONATIONS or determine the status of compliance for any
+particular state visit https://pglaf.org
+
+While we cannot and do not solicit contributions from states where we
+have not met the solicitation requirements, we know of no prohibition
+against accepting unsolicited donations from donors in such states who
+approach us with offers to donate.
+
+International donations are gratefully accepted, but we cannot make
+any statements concerning tax treatment of donations received from
+outside the United States.  U.S. laws alone swamp our small staff.
+
+Please check the Project Gutenberg Web pages for current donation
+methods and addresses.  Donations are accepted in a number of other
+ways including including checks, online payments and credit card
+donations.  To donate, please visit: https://pglaf.org/donate
+
+
+Section 5.  General Information About Project Gutenberg-tm electronic
+works.
+
+Professor Michael S. Hart was the originator of the Project Gutenberg-tm
+concept of a library of electronic works that could be freely shared
+with anyone.  For thirty years, he produced and distributed Project
+Gutenberg-tm eBooks with only a loose network of volunteer support.
+
+
+Project Gutenberg-tm eBooks are often created from several printed
+editions, all of which are confirmed as Public Domain in the U.S.
+unless a copyright notice is included.  Thus, we do not necessarily
+keep eBooks in compliance with any particular paper edition.
+
+
+Most people start at our Web site which has the main PG search facility:
+
+     https://www.gutenberg.org
+
+This Web site includes information about Project Gutenberg-tm,
+including how to make donations to the Project Gutenberg Literary
+Archive Foundation, how to help produce our new eBooks, and how to
+subscribe to our email newsletter to hear about new eBooks.
diff --git a/38793-8.zip b/38793-8.zip
new file mode 100644
index 0000000..fee904e
--- /dev/null
+++ b/38793-8.zip
diff --git a/38793-h.zip b/38793-h.zip
new file mode 100644
index 0000000..90d92f3
--- /dev/null
+++ b/38793-h.zip
diff --git a/38793-h/38793-h.htm b/38793-h/38793-h.htm
new file mode 100644
index 0000000..3174016
--- /dev/null
+++ b/38793-h/38793-h.htm
@@ -0,0 +1,3434 @@
+<!DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Strict//EN"
+    "http://www.w3.org/TR/xhtml1/DTD/xhtml1-strict.dtd">
+<!-- $Id: header.txt 236 2009-12-07 18:57:00Z vlsimpson $ -->
+
+<html xmlns="http://www.w3.org/1999/xhtml" xml:lang="en" lang="en">
+  <head>
+    <meta http-equiv="Content-Type" content="text/html;charset=iso-8859-1" />
+    <meta http-equiv="Content-Style-Type" content="text/css" />
+    <title>
+      The Project Gutenberg eBook of South America and the War, by F. A. Kirkpatrick, M.A.
+    </title>
+    <style type="text/css">
+
+body {
+    margin-left: 10%;
+    margin-right: 10%;
+}
+
+    h1,h2,h3,h4,h5,h6 {
+    text-align: center; /* all headings centered */
+    clear: both;
+}
+
+small { font-size:60%; }
+big { font-size:140%; }
+
+p {
+    margin-top: .75em;
+    text-align: justify;
+    margin-bottom: .75em;
+}
+
+hr {
+    width: 33%;
+    margin-top: 2em;
+    margin-bottom: 2em;
+    margin-left: auto;
+    margin-right: auto;
+    clear: both;
+}
+
+table {
+    margin-left: auto;
+    margin-right: auto;
+}
+
+/* Vertical Spacing */
+
+.bigskip {
+padding-top: 1.25em;
+}
+
+.hugeskip {
+padding-top: 3em;
+}
+
+.blockquot {
+    margin-left: 5%;
+    margin-right: 10%;
+}
+
+.transnote {background-color:#EEE; color: inherit; margin: 2em 10% 1em 10%;
+font-size: 80%; padding: 0.5em 1em 0.5em 1em; text-align: left;}
+
+.signature {
+  margin-right: 30%;
+   text-align: right;}
+
+.center   {text-align: center;}
+
+.smcap    {font-variant: small-caps;}
+
+
+ins {text-decoration:none; border-bottom: thin dotted gray;}
+.tnote {border:dashed 1px; margin-left: 10%; margin-right: 10%;
+padding-bottom: .5em; padding-top: .5em; padding-left: .5em;
+padding-right: .5em;}
+
+/* Images */
+.figcenter   {
+    margin: auto;
+    text-align: center;
+}
+
+/* Footnotes */
+.footnotes        {border: dashed 1px;}
+
+.footnote         {margin-left: 10%; margin-right: 10%; font-size: 0.9em;}
+
+.footnote .label  {position: absolute; right: 84%; text-align: right;}
+
+.fnanchor {
+    vertical-align: super;
+    font-size: .8em;
+    text-decoration:
+    none;
+}
+
+    </style>
+  </head>
+<body>
+
+
+<pre>
+
+Project Gutenberg's South America and the War, by F. A. Kirkpatrick
+
+This eBook is for the use of anyone anywhere at no cost and with
+almost no restrictions whatsoever.  You may copy it, give it away or
+re-use it under the terms of the Project Gutenberg License included
+with this eBook or online at www.gutenberg.org
+
+
+Title: South America and the War
+
+Author: F. A. Kirkpatrick
+
+Release Date: February 9, 2012 [EBook #38793]
+
+Language: English
+
+Character set encoding: ISO-8859-1
+
+*** START OF THIS PROJECT GUTENBERG EBOOK SOUTH AMERICA AND THE WAR ***
+
+
+
+
+Produced by Adrian Mastronardi, JoAnn Greenwood and the
+Online Distributed Proofreading Team at https://www.pgdp.net
+(This file was produced from images generously made
+available by The Internet Archive/American Libraries.)
+
+
+
+
+
+
+</pre>
+
+
+<div class="bigskip"></div>
+
+<h1>
+SOUTH AMERICA AND
+THE WAR<br /><br />
+
+<small>BEING THE SUBSTANCE OF<br />
+A COURSE OF LECTURES DELIVERED IN<br />
+THE UNIVERSITY OF LONDON, KING'S COLLEGE<br />
+UNDER THE TOOKE TRUST<br />
+IN THE LENT TERM<br />
+1918</small></h1>
+
+<div class="bigskip"></div>
+<h3>BY</h3>
+
+<h2>F. A. KIRKPATRICK, M.A.</h2>
+
+<div class="hugeskip"></div>
+<div class="center">CAMBRIDGE<br />
+
+AT THE UNIVERSITY PRESS<br />
+
+1918</div>
+
+
+
+<hr style="width: 65%;" />
+<h2><a name="PREFACE" id="PREFACE"></a>PREFACE</h2>
+
+
+<p>This little book contains the substance, revised and adapted for
+publication, of lectures given in the Lent Term, 1918, at King's
+College, London, under the Tooke Trust for providing lectures on
+economic subjects. The course of lectures was in the first instance an
+endeavour to perform a war-service by drawing attention to the activity
+of the Germans in Latin America, and particularly to the ingenuity and
+tenacity of their efforts to hold their economic ground during the war,
+with a view to extending it after the conclusion of peace. A second
+object was to examine more generally the bearings of the war on those
+countries, and the influence of the present crisis on their development
+and status in the world.</p>
+
+<p>These two topics, though closely connected, are distinct. The first has
+an immediate and present importance, the second has a wider historic
+significance. The logical connexion between them may not seem obvious.
+Yet the first enquiry, concerning German war-efforts in Latin America,
+naturally and inevitably led to the second, concerning the larger issues
+involved. The former topic is treated in Chapters <span class="smcap">I</span>, <span class="smcap">II</span> and <span class="smcap">III</span>, the
+latter in Chapters <span class="smcap">IV</span>, <span class="smcap">V</span> and <span class="smcap">VI</span>. The term "South America" is used in the
+title of this book as a matter of customary convenience; but it is not
+meant to exclude the Antillean Republics or the Latin-American States
+stretching to the North-west of the Isthmus of Panamá.</p>
+
+<p>Clearly, an essay of this kind, if it was to be of any use, had to be
+produced quickly. It was impossible to wait in hopes of achieving some
+kind of completeness. The immediate and urgent importance of the subject
+has been signally emphasised by the despatch of a special British
+Diplomatic Mission to the Latin-American Republics, and by the King's
+message addressed to British subjects in Latin America, in order to
+inculcate the spirit of collective effort.</p>
+
+<p>In the course of this essay frequent mention is made of the struggle for
+emancipation, of the part which Englishmen took in that struggle and of
+the great services rendered to the cause of independence by the action
+of British statesmen, notably Canning. In a book which aims mainly at a
+review of present conditions, it is impossible to enlarge upon these
+topics, since their adequate treatment would involve some consideration
+of political action on the European Continent and in the United States.
+But since this passage of past history bears closely on the present
+topic, it may be here mentioned that a brief account of these matters is
+given in the <i>Cambridge Modern History</i>, vol. <span class="smcap">X</span>, chap. <span class="smcap">IX</span>.</p>
+
+<p>The subject of German "peaceful penetration," which is incidentally
+illustrated but not expounded in these chapters, may be studied in M.
+Hauser's book entitled (in its English version) <i>Germany's Economic Grip
+upon the World</i>; also in <i>The Bloodless War</i>, translated from the
+Italian of Signor Ezio Gray. The character of that penetration, with its
+admirable as well as its odious features, is briefly and clearly set
+forth in a recent Report (Cd 9059) presented to the Board of Trade on
+enemy interests in British trade.</p>
+
+<p>I desire to express my indebtedness to <i lang="fr" xml:lang="fr">Le Brésil</i>, a weekly review of
+Latin-American affairs published in Paris; to <i>The Times</i> newspaper,
+particularly the monthly <i>Trade Supplement</i> and the South American
+number (Part 183) of <i>The Times History of the War</i>; to the weekly
+<i>South American Journal</i>; and to the monthly <i>British and Latin-American
+Trade Gazette</i>. The quotation on pages 40-41 is taken from <i>The Times</i>;
+and various other passages, not always verbally reproduced, are derived
+from the same source.</p>
+
+<p>It is impossible to thank by name all those who have placed at my
+disposal their knowledge of Latin-American countries. But I owe an
+especial debt of gratitude to the Master of Peterhouse for his aid and
+advice in the production of this book.</p>
+
+<p>The original matter has been considerably rearranged for purposes of
+publication. But wherever convenience permitted, the lecture form has
+been retained in order to indicate that the book owes its inception to
+King's College, London.</p>
+
+<div class="signature">F. A. K.</div>
+<p>
+<i>August 15, 1918.</i><br />
+</p>
+
+
+
+<hr style="width: 65%;" />
+<h2>CONTENTS</h2>
+
+
+<div class="center">
+<table border="0" cellpadding="2" cellspacing="0" summary="Contents">
+<tr><td align="right">&nbsp;</td><td align="right">&nbsp;</td><td align="right">PAGE</td></tr>
+<tr><td align="right">&nbsp;</td><td align="left"><a href="#PREFACE">PREFACE</a></td><td align="right">V</td></tr>
+<tr><td align="right">&nbsp;</td><td align="left"><a href="#INTRODUCTION">INTRODUCTION&mdash;GENERAL CONDITIONS IN LATIN AMERICA</a></td><td align="right">1</td></tr>
+<tr><td align="right">CHAP.</td></tr>
+<tr><td align="right">I.</td><td align="left"><a href="#CHAPTER_I">POLITICAL CURRENTS AND FORCES</a></td><td align="right">14</td></tr>
+<tr><td align="right">II.</td><td align="left"><a href="#CHAPTER_II">THE GERMAN OUTLOOK ON LATIN AMERICA</a></td><td align="right">25</td></tr>
+<tr><td align="right">III.</td><td align="left"><a href="#CHAPTER_III">THE ECONOMIC WAR AND ITS PROPAGANDA</a></td><td align="right">34</td></tr>
+<tr><td align="right">IV.</td><td align="left"><a href="#CHAPTER_IV">THE RECOGNITION OF LATIN AMERICA</a></td><td align="right">45</td></tr>
+<tr><td align="right">V.</td><td align="left"><a href="#CHAPTER_V">EFFECTS OF THE WAR ON THE REPUBLICS</a></td><td align="right">53</td></tr>
+<tr><td align="right">VI.</td><td align="left"><a href="#CHAPTER_VI">PAN-AMERICANISM</a></td><td align="right">66</td></tr>
+<tr><td align="right">&nbsp;</td><td align="left"><a href="#LATIN-AMERICAN_REPUBLICS">LATIN-AMERICAN REPUBLICS</a></td><td align="right">78</td></tr>
+</table></div>
+
+<blockquote><p>The <a href="#MAP">map</a> at the end of the book shows the former Spanish and
+Portuguese possessions in America, and also the existing
+Latin-American Republics.</p></blockquote>
+
+
+
+<hr style="width: 65%;" />
+<h2>SOUTH AMERICA AND THE WAR</h2>
+
+
+
+<hr style="width: 65%;" />
+<h2><a name="INTRODUCTION" id="INTRODUCTION"></a>INTRODUCTION</h2>
+
+<h3>GENERAL CONDITIONS IN LATIN AMERICA</h3>
+
+
+<p>The New World or Western Hemisphere consists of two continents. The
+greater part of the northern continent is occupied by two great Powers,
+which may be described as mainly Anglo-Saxon in origin and character.
+One of them, the Canadian Federation, is a monarchy, covering the
+northern part of the continent. The other, a republic, the United
+States, occupies the middle part. To the south and south-east of these
+two extensive and powerful countries stretch the twenty republics,
+mainly Iberian in origin and character, which constitute Latin America.
+These lands cover an area which is about twice the size of Europe or
+three times the size of the United States. Their population approaches
+eighty millions. Latin America, extending as it does through every
+habitable latitude from the north temperate zone to the Antarctic seas,
+possesses every climate and every variety of soil, and accordingly
+yields, or can be made to yield, all the vegetable and animal products
+of the whole world. Moreover, most of the republics also severally
+contain territory of every habitable altitude, so that a man can change
+his climate from torrid to temperate and from temperate to frigid simply
+by walking up-hill. Thus, equatorial lands can produce within the range
+of a few miles all the products of every zone. Most of the republics
+also furnish an abundance and variety of mineral products. The name
+Costa Rica, or Coast of Riches, which was given by the early discoverers
+to a small strip of the mainland, was prophetic of all its shores. And
+the fable of El Dorado, concerning its interior wealth, has proved to be
+not fabulous but only allegorical.</p>
+
+
+<div class="center"><i>Geographical Grouping</i></div>
+
+<p>The geographical distribution of these republics should be indicated.
+Three of them are island states of the Caribbean Sea. Cuba is the
+largest of the Antilles; Santo Domingo and Haiti divide between them the
+next largest. The rich tropical fertility of these West Indian isles has
+been a proverb for centuries and need not here be emphasised. Upon the
+mainland, the vast territory of Mexico and the five Central-American
+republics may be grouped together, forming as they do a kind of
+sub-continent, a narrowed continuation of North America. Through this
+region a broad mountain-mass curves from north-west to south-east. This
+configuration provides the characteristics and the varied products of
+every zone upon the same parallel of latitude: the torrid coastal
+strips, bordering both oceans; the beautiful, wholesome and productive
+region of the central plateau and long upland valleys; and finally the
+chilly inhospitable regions of the mountain heights. The long sweep of
+the country south-eastwards through the tropics also provides a wide
+range of character, from the cattle-rearing plains of Northern Mexico to
+the coffee and banana plantations of Costa Rica. Nowhere are lands of
+richer possibilities to be found.</p>
+
+<p>The small newly-created Republic of Panamá completes this northern
+system of Latin-American countries. Thus, before coming to South America
+at all, we count ten Latin-American states, three in the Antilles, seven
+upon the mainland.</p>
+
+<p>The other ten republics lie within the continent of South America. That
+continent is shaped by nature in lines of a vast and imposing
+simplicity, so that it is possible to sketch its main features in a few
+words. It is divided broadly into mountain, forest and plain&mdash;the
+immense chain of the Andes, the vast Amazonian forests, the
+wide-stretching plains of the Pampa, and the colossal water system of
+the three rivers, Orinoco, Amazon, La Plata. The dominating element is
+the great backbone, the cordillera of the Andes. From the southern
+islands of Tierra del Fuego this <span lang="es" xml:lang="es">cordillera</span> stretches for 4000 miles
+along the Pacific coast to the northern peninsulas of the Spanish Main,
+and thence throws out a great eastward curve along the southern shore
+of the Caribbean Sea. This continuous mountain-wall, clinging closely to
+the Pacific coast, determines the whole character of the continent. In
+the tropical zone, the trade winds, blowing continually from the
+Atlantic, sweep across South America until they strike this towering
+mountain barrier. Then they shed their moisture on its eastern slopes,
+which give birth to the multitudinous upper waters of the Orinoco, the
+Amazon and the western affluents of the River Plate. The Amazon rather
+resembles a slowly moving inland sea, its twelve principal tributaries
+all surpassing the measure of European rivers. The River Plate pours
+into the ocean more water than all the rivers of Europe put together.
+The Orinoco, shorter but not less voluminous, drains a vast area with
+its 400 tributaries.</p>
+
+<p>But the Andes, whose forest-clad eastern slopes pour these immeasurable
+water-floods across the whole continent to the Atlantic, oppose to the
+Pacific, in the southern tropics, a bare dry wall of rock and yellow
+sand. In the north, <i lang="es" xml:lang="es">the garrua</i>, the winter mist of equatorial Peru,
+supplies moisture for cultivation. South of this region, the rainless
+desert stretches, a ribbon-like strip, between the mountains and the
+sea. Here, except in some transverse river-valleys, not a blade of grass
+can grow for over a thousand miles. Yet it is this very barrenness which
+has produced the materials of fertility for other lands in the form of
+guano and nitrate deposits. Far to the south, in the "roaring forties,"
+these conditions are reversed. Here, moisture-laden winds blow
+continually and stormily from the Pacific, feeding the dense and soaking
+forests of southern Chile. In the same latitudes, to the east of the
+Andes the terraced plains of Patagonia supply sheep pasture, thinly
+nourished by slight rainfall, although, over so vast an extent, these
+flocks amount to many millions. In the more temperate regions, between
+these zones of climatic extremes, more normal conditions prevail. On one
+side of the Andes are the rich valleys of Central Chile, on the other
+side the wide plains of the Argentine Pampa, formerly given over to
+pasture, now producing wheat, maize, flax, barley and oats as well as
+meat, hides and wool.</p>
+
+<p>South America has been called the fertile continent. Considering that
+most of the land lies within the tropics, it might be called the
+habitable continent&mdash;habitable in comfort and health by white men. In
+form, the continent may be roughly compared with Africa, but the
+comparison is in favour of South America. The traveller who has sailed
+along the east or west coast of tropical Africa meets a contrast on
+crossing the Atlantic. Along the Brazilian coast, he finds a succession
+of busy ports, crowded with the shipping of all nations&mdash;flourishing and
+growing cities, inhabited largely by Europeans living the normal life of
+Europe. The perennial trade winds, blowing from the sea, bring coolness
+and health; and, almost everywhere, the worker in the ports may make his
+home upon neighbouring hills. On the west coast, tropical conditions are
+even more striking. Here, a soft south wind blows continually from
+cooler airs, and the Antarctic current flowing northwards refreshes all
+the coast. At Lima, twelve degrees from the Line, one may wear European
+dress at midsummer and, descending a few miles to the coast, may plunge
+into a sea which is almost too cold. Moreover, in these regions the
+Andine valleys offer every climate, and a short journey from the coast
+leads one to uplands resembling southern Europe. Higher yet, beyond the
+first or western chain of the Andes stretches the vast and lofty plateau
+enclosed between the double or triple ranges of volcanic mountains. The
+western part of Bolivia, though tropical in situation, is a temperate
+land, lying as it does at a height of above 12,000 feet. This broad
+Bolivian plateau narrows northwards through Peru and finally contracts
+into the Ecuadorian "avenue of volcanoes." Here, in the very central
+torrid zone, a double line of towering peaks shoot their fires far above
+plains and slopes of perpetual snow. Thence the cordillera opens out
+northwards into the broad triple range of Colombia, which encloses wide
+river valleys of extraordinary richness and fertile savannahs, enjoying
+perpetual spring.</p>
+
+<p>Lastly, it should be noted that some of the best part of South America
+begins where Africa ends. Buenos Aires, Montevideo, Capetown and Sydney
+lie approximately in the same latitude, about 34° or 35° south. But some
+of the best parts of Chile and Argentina stretch far to the south of
+this latitude. Alone of the southern continents, South America thrusts
+itself far through the cool regions of the temperate zone.</p>
+
+<p>Hitherto, white settlement in South America has, in the main, followed
+the easiest lines, along the coast, upon the southern plains and up the
+river courses. Of the three great rivers, the Orinoco is the least
+developed, partly owing to natural difficulties&mdash;namely, an uneven
+shifting bed and great differences of water level&mdash;partly owing to
+artificial and political conditions; but in the wet season its waters
+admit navigation up the main stream and its principal western affluent,
+the Apure, almost to the foothills of the Colombian Andes; and the trade
+winds, blowing upstream, carry sailing craft half across the continent.
+Upon the Amazon system, Manaos, one of the great ports of Brazil, is 900
+miles from the sea: Iquitos, 2300 miles from salt water, is accessible
+to the smaller class of ocean steamers. Upon the Paraná, 1000 miles from
+the ocean, stands the port of Asunción, capital of Paraguay, accessible
+to ocean ships of shallow draught and to large river steamers:
+stern-wheel steamers can mount the Paraguay River 1000 miles farther to
+the remote Brazilian port of Cuyabá.</p>
+
+<p>The navigation of both these river systems, the Amazon and the River
+Plate, is limited or rather interrupted by the fourth great feature of
+the continent, the Brazilian plateau. The Paraná and its affluents
+plunge from this plateau to the southern plain in tremendous waterfalls.
+The southern tributaries of the Amazon pierce their way down into the
+Amazonian valley along defiles, cataracts and rapids sometimes extending
+scores of miles. The Amazonian affluents are mostly navigable from the
+main river to the foot of these cascades. Above the cascades, there
+stretch fresh reaches of navigable water, providing many paths into the
+far interior. Similar conditions are found on the two branches of the
+River Tocantins and on other Brazilian rivers, such as the São Francisco
+and the Paranahyba. With the future growth of population, the
+construction of lateral railways and, later, perhaps the partial
+canalisation of rivers, there is no limit to the possibilities of
+internal water communication. The wealth of water power which awaits
+application is obvious. As to possibilities of water storage and
+irrigation, it suffices to say that on the Lower Orinoco and also on the
+Lower Amazon the difference of water level between wet and dry seasons
+is at least fifty feet, and most of the affluents rise and fall
+proportionately.</p>
+
+<p>The great Brazilian plateau, which has just been mentioned, further
+justifies the description of South America as the fertile continent&mdash;the
+region of habitable tropics. The vast scale of this plateau and its
+relation to the River Plate system justify its description here as a
+continental feature rather than a purely national feature, although it
+is mainly a national possession of Brazil. From the north-east shoulder
+of the Brazilian coast, this varied plateau, seamed by many clefts,
+stretches southwards and south-westward in a vast semi-circular sweep
+dividing the two river-systems. The Paraná and its affluents plunge from
+this plateau towards the south and west. Northwards and eastwards it
+sends a multitude of streams to the Amazon and the Atlantic. These
+Brazilian uplands naturally vary in character and productiveness, but
+they are in great part suitable for white habitation and especially for
+the grazing of cattle. There is no winter; there is little of excessive
+or torrid heat; the grass grows all the year round; and in the
+neighbourhood of some rivers, the grasslands are annually renovated by
+seasonable and shallow floods.</p>
+
+
+<div class="center"><i>Political Distribution</i></div>
+
+<p>Among the republics, the United States of Brazil stand in a class apart,
+by virtue of the Portuguese origin and character of that country, its
+very distinct history and its immense size, occupying, as it does, more
+than half the continent. As to the republics of Spanish origin, no
+single classification suffices. The most obvious division is that which
+groups them into tropical and temperate countries. The five republics of
+Venezuela, Colombia, Ecuador, Peru and Bolivia, which lie wholly within
+the tropics, form a group of states which were closely connected in the
+early history of emancipation and which are still marked by a general
+though not very close similarity in respect of geography and
+ethnological conditions. Chile and Argentina lie mainly in the
+temperate zone; Uruguay wholly so; and these, with the southern parts of
+Brazil, are the regions most obviously suitable for white settlement.
+These three southern republics may also be described as the most
+European part of the continent, whereas the five tropical republics have
+a large admixture of indigenous, and, in parts, also of negro, blood.</p>
+
+<p>The small sub-tropical republic of Paraguay, secluded in the interior of
+the continent, does not quite fall into either group, but belongs to the
+system of River Plate countries. For the three Atlantic republics of the
+southern hemisphere, Argentina, Uruguay, Paraguay, form a distinct group
+or sub-continent known as the "River Plate" and thus suggest a second
+classification into the Rio-Platense and the Andine states. Lastly, a
+glance at the map shows that Colombia and Venezuela differ from all
+their southern neighbours in that they border upon the Caribbean Sea,
+that Mediterranean Sea of the New World which stretches between the two
+continents. Thus these two republics complete the circle of that
+Mediterranean system of lands&mdash;the Antilles, Mexico, Central America,
+Panamá&mdash;in which the United States are the dominant Power and in which
+Great Britain, France and Holland are also members&mdash;one may perhaps say
+subsidiary members. Thus each of these republics of the Spanish Main has
+a dual character. They are on the one hand South American continental
+states; but their coasts also face the coasts of the United States, and
+their borders, to east and west, touch lands which are not purely
+Latin-American in character. Venezuela, both historically and actually,
+faces both ways. On the one hand she is the country of the Orinoco, of a
+vast continental interior: on the other hand she belongs also to the
+Antillean system: her eastern neighbour is British Guiana, and her
+territory almost locks fingers with the British island of Trinidad,
+which is in some sort the distributing commercial centre for all the
+Spanish Main. Thus Venezuela completes that long Antillean chain which
+curves from Florida to the Spanish Main, a chain whereof several links
+are in the possession of the United States. This dual character stands
+out in the early history of the country. For, during most of the
+colonial period, Venezuela was the only part of South America not
+attached to the Viceroyalty of Lima. Eastern Venezuela depended on the
+Audiencia of Santo Domingo and was thus connected with the Antilles and
+with the Viceroyalty of Mexico, that is to say with North America. Then
+followed a period of dependence on the Viceroyalty of Santa Fé de
+Bogotá, until finally Venezuela was erected into a separate
+Captaincy-general.</p>
+
+<p>In the Republic of Colombia the dual position has been forced into
+prominence by recent events. On the one hand Colombia is a Pacific
+state, an Andine and continental country; yet her chief ports and
+arteries of communication lead northwards; and, until fifteen years ago,
+she bestrode the Isthmus of Panamá. In 1903 that Isthmus passed under
+the control of the United States; and Colombia, which formerly included
+the province of Panamá, now practically has the United States for her
+nearest neighbour.</p>
+
+
+<div class="center"><i>Origin of Divisions</i></div>
+
+<p>The connexion of these states with Europe dates from the first voyage of
+Columbus across the Atlantic and from Cabral's voyage to Brazil. The
+fabric of South America, as it stands today, was constructed in the main
+during the marvellous half-century from 1492 to 1542. During that time
+almost all the existing states took shape, and most of the present
+capitals were founded. That work is chiefly connected with five great
+names, Columbus, Balboa, Cortes, Magellan, Pizarro. Columbus and his
+companions or immediate successors founded the Spanish empire on the
+Antilles and the Spanish Main. Balboa sighted the South Sea, crossed the
+Isthmus, and claimed that ocean and all its shores for the Crown of
+Castile. Cortes established the empire of New Spain in North America.
+Pizarro, starting southwards from Panamá, discovered the empire of the
+Incas, shattered their power and set in its place a Spanish Viceroyalty.</p>
+
+<p>The political divisions marked out at the conquest, which still subsist
+in the main, were determined by the course of exploration and conquest.
+When a separate condottiere hit upon a convenient site for a port and
+founded a city either upon the sea-board or in some inland situation
+accessible from the port, his work usually came to be recognised by the
+creation of a separate government. These conquistadores showed judgment
+and capacity in their choice of sites and in their marches inland, which
+naturally followed the most convenient lines of communication. In this
+way it came about that the political divisions in the Spanish empire
+were mainly determined by natural economic causes, acting through the
+rather haphazard experiments of practical men rather than through any
+deliberate theory. These natural economic conditions are permanent in
+character: they still persist, and they account in great part for the
+continuance of the chief political divisions after the achievement of
+independence and for the failure of ambitious schemes and aspirations
+after union or federation. Thus the separate "kingdoms" and
+"captaincies-general" of imperial Spain grew into states and are now
+growing into nations. An illustration may be found in the Australian
+colonies. In Australia, separate existence was at first an economic
+necessity, demanded by the early colonists, owing to the distinct paths
+of settlement and the distance between ports. Union, achieved later by
+means of federation, was the work of artificial efforts of statesmanship
+acting patiently through many difficulties.</p>
+
+<p>The "Indies" were dependencies or possessions of Spain down to the
+nineteenth century. Viceroys, captains-general and governors were sent
+out from the Peninsula to rule in the capitals: <span lang="es" xml:lang="es">corregidores</span> held office
+in the smaller towns<a name="FNanchor_1_1" id="FNanchor_1_1"></a><a href="#Footnote_1_1" class="fnanchor">[1]</a>: <span lang="es" xml:lang="es">audiencias</span>, at once tribunals and councils,
+were established in important centres. The course of trade was regulated
+and was directed solely to the Peninsula. But the strength and the basis
+of the fabric lay in the municipalities, which, although the
+councillors' seats were purchased from the Crown or inherited from the
+original purchasers, nevertheless offered some kind of public career to
+the inhabitants and afforded the means of local public vitality.</p>
+
+
+<div class="center"><i>Emancipation</i></div>
+
+<p>When Napoleon stretched out his hand upon the Spanish royal family and
+upon the Spanish kingdom, these municipalities everywhere became the
+channels of patriotic protest and resistance to French pretensions.
+Owing to the collapse of the monarchy, the unsympathetic and even
+hostile attitude of successive popular authorities in Spain, and the
+action of certain resolute leaders guiding the natural development of
+local activities, these movements in America soon shaped towards
+separation. In every capital the municipality formed the nucleus of a
+<span lang="es" xml:lang="es">junta</span> or convention, which first assumed autonomy and then was forced by
+the logic of events, and particularly by Spanish attempts at repression,
+to claim republican independence. The resultant struggle was shared in
+common by all. Buenos Aires, having worked out for herself a fairly
+tranquil and facile revolution, sent troops under San Martín to aid
+Chile and to invade the royalist strongholds of Peru. Bolívar, the
+Caraqueño, liberator of the Spanish Main and of Quito, sent his soldiers
+southwards through Peru. Finally, Venezuelans and Argentines, from
+opposite ends of the continent, stood side by side in that battle on the
+Andine heights of Ayacucho which ended the Spanish Viceroyalty of Peru
+and the Spanish dominion on the continent. The peoples of South America,
+through all subsequent divisions, have never quite forgotten that in
+those days they made common cause and united in a combined effort to lay
+the foundations of what might be a common destiny.</p>
+
+<p>The emancipation of Mexico was a separate movement, which followed a
+rather different course owing to the Indian origin of most of the
+population. The issue was confused and hindered by early outbreaks,
+which were in great part Indian insurrections and class conflicts not
+directed to any clear aim and tainted by brigandage. An attempt was made
+to cut the tangle of conflicting interests by the establishment of an
+independent Mexican monarchy. In 1823 this was overthrown by a military
+revolt, which started the Mexican republic on its stormy career. The
+movement of separation from Spain inevitably embraced also the
+Captaincy-general of Guatemala, which chose separation from Mexico, and
+assumed the name of Central America&mdash;an artificial political term rather
+than a geographical description. Its five provinces eventually separated
+into the five republics of Central America.</p>
+
+<p>Events in Brazil shaped themselves differently. Upon the French invasion
+of Portugal in 1807-8, the Portuguese royal family migrated to Brazil
+and made Rio for a time the capital of the Portuguese dominions. When
+King John VI returned to Lisbon in 1821, he left as Regent of Brazil his
+son Dom Pedro, who, a few months later, supported by Brazilian opinion,
+threw off allegiance to his father and declared himself an independent
+sovereign. Thus was established, or rather continued, that Brazilian
+monarchy which subsisted down to 1889 and which secured to that country
+tranquillity and a continuous though rather sleepy progress during the
+stormy period through which Spanish America passed after the achievement
+of independence.</p>
+
+<p>For the long struggle had been mainly destructive. It had not only swept
+away Spanish authority, but had blurred and in some parts had erased all
+authority, all stability and order, had confused or obliterated whatever
+had existed of political experience or tradition, and had left the
+ignorant masses a prey to theorists and adventurers. The result was
+that, for at least a generation after the achievement of independence,
+most of the Spanish-American states were agitated by a turmoil of
+multitudinous constitutional experiments, confused conflict and
+destructive civil war, alternating with periods of rigorous and often
+tyrannical personal despotism. These movements have been perhaps
+unfairly judged in Europe. The young communities of Latin America,
+wanting in political experience and torn by a long and unavoidable
+struggle, were engaged in sweeping up the débris of their great
+revolution.</p>
+
+<p>The Republic of Chile in great part escaped that turmoil through the
+establishment, after a brief period of conflict, of a fairly stable
+aristocratic oligarchy of landed proprietors. Her three "revolutions"
+have been landmarks rather than interruptions in her historical
+development; for they were brief, decisive and conducive to a clearer
+constitutional definition. Argentina, after the fall of the Dictator
+Rosas in 1852, began to feel her way towards union and order, and may be
+said to have achieved that end with the general acceptance of her
+completed Federal Constitution in 1880. In the tropical republics
+constitutional agreement was rendered more difficult by the mixture of
+races, by geographical and climatic obstacles and by a comparative
+remoteness from European influences. And in the Caribbean lands our own
+generation has seen Presidential seats occupied by despots of the old
+type, usually men of imperious and resolute character, dauntless courage
+and unscrupulous indifference respecting means and methods, men
+sometimes risen from the lowest station through ruthless force and
+cunning. Indeed, Mexico, after a period of remarkable economic
+development under the long autocracy of Porfirio Diaz, relapsed, upon
+his fall in 1910-11, into the condition of a century ago.</p>
+
+<p>Yet it may be generally said that the decade following 1870 was the
+beginning of a new era for the Latin-American republics. The extension
+of steam navigation, the building of railways, machinery applied to
+agriculture, the influx of immigrants from Southern Europe and of
+capital from Northern Europe, the growing demand in Europe for
+foodstuffs and raw materials&mdash;all these things favoured, particularly in
+the south temperate zone, a rapid and very remarkable economic
+development which accompanied and aided a consolidation and closer
+cohesion of the social and political fabric.</p>
+
+<p>The outstanding fact in the recent history of Latin America and in her
+present relations to the war is this economic development, this great
+creation of new wealth during the past generation. It has been described
+in many modern books upon the various republics, and can be studied in
+Consular Reports, which read like romances. The Pampa has become one of
+the chief granaries of the world; and Buenos Aires, the greatest city of
+the southern hemisphere, is the centre of a railway system almost equal
+in extent to that of the United Kingdom. Chile has been enriched by
+nitrate and copper, Brazil by coffee and rubber. The High Andes have
+become once more a treasure-house of mineral wealth: tropical hills,
+valleys and coastal plains yield the riches of their vegetable products.</p>
+
+<p>The date assigned above as the beginning of this great economic increase
+is the date when the modern German Empire came into complete being. The
+recent growth of Latin America coincides with the birth and growth of
+the German industrial system. The organised energy, the patient
+assiduity, the expanding productiveness of Germany found a great
+opportunity in meeting the new needs of these rapidly growing countries.
+Germans won a remarkable position in those lands and had marked out for
+themselves a yet more ambitious future.</p>
+
+<p>During the same period the United States, having decisively consolidated
+the Union, has taken its place among the great Powers of the world. That
+republic has also altered its economic character: for whereas previously
+the inhabitants had been principally engaged in the internal development
+of a vast territory and had been exporters mainly of foodstuffs and raw
+materials, the growth of population has turned them into a commercial
+people exporting manufactured goods. This dual development, political
+and economic, has profoundly affected the relations of the United States
+with Latin America.</p>
+
+<p>Meantime the long-standing and intimate connexion between these lands
+and the maritime countries of Western Europe has followed a natural and
+uninterrupted course suffering no signal change except that, quickened
+by a newly-awakened and more active interest on the part of Europe, it
+has become closer, more sympathetic and more firmly based upon mutual
+respect and understanding.</p>
+
+<p>It is the object of the following pages to examine these matters with
+reference to the Great War, and also to consider generally the bearings
+of the war upon the development of the Latin-American countries.</p>
+
+
+
+<hr style="width: 65%;" />
+<h2><a name="CHAPTER_I" id="CHAPTER_I"></a>CHAPTER I</h2>
+
+<h3>POLITICAL CURRENTS AND FORCES</h3>
+
+
+<p>In estimating the bearings of the great war upon these countries, it is
+necessary to review certain political forces and currents of public
+thought, which the Germans have attempted to divert to diplomatic or
+bellicose ends. Since these influences date in part from the era of
+independence or even from an earlier date, clearness of vision demands
+some historical retrospect. When, upon the achievement of independence,
+schemes of Latin-American or of South American union were found
+impracticable, it was inevitable that frontier disputes and national
+rivalries should lead to tension and sometimes to wars between states.
+When it is remembered that every one of the ten South American republics
+was divided from several neighbours by frontiers partly traversing
+half-explored and imperfectly mapped regions, it is perhaps surprising
+that such questions have been on the whole so amicably settled, and that
+those which are still pending do not appear to be menacing or dangerous.
+Owing to the paucity of population on the ill-defined and remote
+interior frontiers, many of these questions did not become urgent until
+the latter part of the nineteenth century, when the increasing
+seriousness of political interests, the steadying influences of material
+growth, and the pressure of outside opinion favoured peaceful
+settlement, usually by means of arbitration. It would be possible to
+compile a formidable list of such disputes. Most of them are questions
+concerning historical and geographical delimitation, of great local
+interest, but hardly of world-wide significance, although for a time the
+world was alarmed lest the frontier dispute of Argentina and Chile
+should excite a conflict between the two peoples engaged in the
+development of the south temperate zone, the natural seat of an
+important trans-Atlantic European civilisation.</p>
+
+<p>A good example of the character of such frontier questions, of their
+mode of settlement and of their possible exploitation for Teutonic
+purposes is to be found in the long-protracted dispute concerning the
+boundary between Venezuela and British Guiana&mdash;a dispute which only
+became acute when gold was discovered in the region under debate. In
+deference to external influence, the whole question was submitted to
+arbitration, and was decided according to historical evidence concerning
+the early course of settlement. This example is of further interest as
+illustrating the German method of seizing opportunities. For, today,
+German propaganda seeks to revive the bitterness of this episode, and
+cultivates the favour of Venezuela by holding out the prospect of the
+enlargement and enrichment of that republic through the absorption of
+British Guiana and Northern Brazil; just as the neighbouring Republic of
+Colombia is assured that German victory and the humiliation of the
+United States will mean the return of Panamá to Colombia. It would be
+unwise to dismiss such persuasive lures as too fantastic even for the
+tropical atmosphere of the Spanish Main. Wherever opportunities occur,
+similar efforts are made to turn to account national jealousies,
+resentments and ambitions, and particularly to exacerbate the relations
+between Brazil and Argentina, between Peru and Chile, between Mexico and
+the United States.</p>
+
+<p>The rivalry between the Portuguese and Spanish elements in South America
+dates from early colonial times; and, as often happens in disputes
+between members of the same family, has been perhaps more warmly felt
+than the historic rivalry between Anglo-Saxon and Latin in America. The
+feeling was kept alive after emancipation by a dispute concerning the
+possession of the Banda Oriental (now the Uruguayan Republic), which
+geographically belonged rather to the Portuguese or Brazilian system,
+historically to the Spanish or Argentine system. During the eighteenth
+century Spaniards and Portuguese had disputed its dominion in a series
+of rival settlements, of wars and treaties, which finally left Spain in
+possession. The struggle for emancipation reopened the question. For
+three years (1825-28) Argentina and Brazil fought for possession. The
+quarrel was adjusted, through the mediation of British diplomacy, by the
+recognition of the Banda Oriental as a sovereign republic. Twenty years
+later, Rosas, dictator of Buenos Aires, attempted to reverse this
+decision by force of arms. His fall, partly brought about by Brazilian
+intervention, settled the question. But it has left traces upon the
+vivacious local sentiment of those young countries.</p>
+
+<p>Again, the war which Chile waged in 1879-83 against Bolivia and Peru
+ended in the occupation by Chile of Western Bolivia and also of the two
+southern provinces of Peru. The ultimate possession of these two
+provinces is still under discussion. Meantime, they remain in Chilian
+hands; and, although a friendlier atmosphere now prevails, diplomatic
+relations have never been resumed between Peru and Chile.</p>
+
+<p>In these inter-state questions Germany seeks her opportunity for fishing
+in troubled waters. German diplomacy and propaganda have striven to
+reopen these old sores and to impede Latin-American consolidation by
+setting state against state, and by fomenting or reviving latent
+ambitions of hegemony or aggrandisement. Those who favour Germany are to
+win great territorial rewards, at the expense of their misguided
+neighbours, upon the achievement of that German victory which is
+represented as certain. Particular efforts have been made to embroil
+Argentina with her neighbours; a prominent feature of this programme is
+the dismemberment of Brazil.</p>
+
+<p>But the most important of these political movements and the one which
+seemed to offer most promise to German schemes, is the long dispute
+between Mexico and her northern neighbour. This is a part of that
+process which since the beginning of the nineteenth century has
+radically altered the map of the Caribbean lands and has shifted the
+whole weight of political influence in that region. The chief effort of
+Germany is to exploit the historic rivalry between Anglo-Saxon America
+and Latin America, and to separate north from south by reviving the
+smart of past incidents and by stirring up apprehensions as to the
+future.</p>
+
+<p>Here, again, it is necessary to glance back and summarise the chief
+actual events of that history<a name="FNanchor_2_2" id="FNanchor_2_2"></a><a href="#Footnote_2_2" class="fnanchor">[2]</a>. When Latin-American independence was
+achieved, between 1820 and 1824, the United States had already become
+the dominant power on the Mexican Gulf by the acquisition of Louisiana
+and Florida, and in 1826 she exercised the privileges of that position
+by prohibiting Mexican and Colombian designs for the emancipation of
+Cuba. In 1845 Texas, which nine years before had seceded from Mexico,
+was admitted to the Union, and in 1846-48 half the territory of the
+Mexican Republic was transferred to the United States by a process of
+conquest confirmed by purchase.</p>
+
+<p>A pause in advance followed, until events showed that Isthmian control
+was a national necessity to the United States. It suffices here to note
+the conclusion of a long diplomatic history. In 1903 the United States,
+having failed to obtain concessions of the desired kind from Colombia,
+supported the province of Panamá in her secession from Colombia, and
+speedily obtained from the newly formed republic a perpetual lease of
+the canal zone, together with a practical protectorate over the Republic
+of Panamá. The United States then proceeded to construct and fortify the
+canal. She also procured from Nicaragua exclusive rights concerning the
+construction of any canal through Nicaraguan territory, and erected in
+fact a kind of protectorate over that republic.</p>
+
+<p>Meanwhile, in the Antilles events were shaping towards control from the
+north. A long-standing trouble concerning Cuba culminated in the
+Spanish-American War of 1898, which brought about the annexation of
+Porto Rico and the Philippines to the United States, while Cuba became
+a republic under the tutelage of that Power. Five years later the United
+States, in order to save the Dominican Republic from European pressure,
+undertook the administration of the revenues of that state. In 1915 she
+interposed to suppress a revolution in Haiti. Finally last year (1917)
+she purchased from Denmark the islands of St Thomas and Santa Cruz.
+Recent rumours as to a proposed further purchase&mdash;that of Dutch
+Guiana&mdash;have been officially denied.</p>
+
+<p>These advances have not gone beyond the Caribbean area, where
+geographical conditions place the United States in a dominant position.
+Her relations with the more distant southern countries, not touching the
+Mediterranean Sea of the New World, fall into a different category and
+do not directly concern the immediate topic.</p>
+
+<p>But in the Caribbean area the United States has established a Sphere of
+Influence, not indeed explicitly defined as such, but recognised in
+effect by other governments and accepted by some at least of the
+republics occupying that region. The events of the last twenty years
+further indicate that the United States is undertaking the obligation,
+usual in such cases, of imposing a "Pax Americana." As in similar
+instances elsewhere, this Pax Americana has not quite clearly marked its
+geographical limit, nor is it guided by any theoretical consistency, but
+rather by the merits of the case and the test of immediate expediency in
+each instance. Thus, whereas the United States enforces peace in Haiti
+and definitely undertakes to maintain internal tranquillity in Cuba, she
+has on the other hand withdrawn from interposition in Mexico. The
+outside world has, on the whole, treated these matters as the concern of
+the United States and respected the working of the Pax Americana.</p>
+
+<p>Meanwhile, geographical proximity has favoured North American commerce,
+and in recent years more than half the trade of Central America was
+carried on with the United States.</p>
+
+<p>It has been necessary to define the situation, because it is accepted by
+the Allies, while it is at the same time jealously assailed by Germany.</p>
+
+<p>For Germany, too, has won a remarkable position in the same region by
+her economic efforts, which have also their political side. On the one
+hand Central America is in a kind of dependence upon the United States:
+on the other hand, it has been said, with obvious exaggeration, but with
+some epigrammatic truth, that Guatemala before the war had become a
+dependency of Germany in everything but the flag. German intelligence
+and industry had seized the opportunity offered in the recent
+development of a comparatively backward region. Peaceful penetration was
+a work of methodical effort, of organised combination. German firms,
+mostly of recent origin and sprung from small beginnings, always
+preferred to import from Germany in order to favour German trade. Indeed
+they were bound to do so by the terms of the credit granted to them by
+German banks or Hamburg export firms for starting their business. Young
+men came out from Germany&mdash;serious, plodding youths, working for small
+pay, taking few pleasures and immersed in business. German retail
+houses, either newly established or formed by the insinuation of Germans
+into native families or native firms, worked in close contact with the
+importing houses. The shipping companies worked with these latter and
+with the Hamburg firms. The chief German achievement in this region was
+the control of the coffee industry, which was acquired by the usual
+German combination of admirable industry, patience and intelligence with
+unscrupulous greed and cunning. Germans advanced money to the grateful
+owners of coffee estates on such terms that the native owner in course
+of time found himself bound hand and foot by ever-increasing debt; and
+the properties usually passed into the hands of the exacting foreign
+creditor, the former owner being often kept on as paid manager. In this
+way, besides doing a good stroke of business for himself, the German
+served Germany by increasing German interests in the country, providing
+cargo for German ships and helping to secure for Hamburg the coffee
+market of Europe. Every little advantage gained by an individual German
+was reckoned as a national gain, as the starting-point for another
+German step forwards. Nor was German advance confined to Guatemala: it
+penetrated all Central America as well as Mexico and the Antillean
+Republics, especially Haiti.</p>
+
+<p>But the maritime war, the British blockade and Black List and, finally,
+the participation of the United States have shaken the fabric thus
+laboriously raised. German ingenuity had overreached itself. For it was
+the insidious and cruel method of German land-grabbing in Guatemala
+which more than anything determined that republic to declare war, in
+order to escape from this ignominious economic dependence, this foreign
+control of a national industry. For it would be difficult to define a
+clear <i lang="la" xml:lang="la">casus belli</i>. But in the peculiar form of her declaration of war
+she told the world under which system she chose to live. For in April
+1918 Guatemala announced that thenceforth she occupied the same position
+as the United States towards the European belligerents.</p>
+
+<p>The iniquity of North American intervention in Nicaragua and the implied
+menace to other states were insistently preached by Germany throughout
+Central America; yet, a month later, Nicaragua also declared war,
+proclaiming at the same time her solidarity with the United States and
+with the other belligerent American Republics.</p>
+
+<p>In Costa Rica the Germans represented the non-recognition by the United
+States of President Tinoco, who owed his position to a <i lang="fr" xml:lang="fr">coup d'état</i>, as
+a menacing insult to that Republic. Then, the same Germans intrigued to
+overthrow Tinoco on account of a Government proposal to tax coffee
+stored for future export. The upshot was that, in May 1918, Costa Rica
+declared war. Two months later Haiti took the same decisive step, and
+also Honduras.</p>
+
+<p>The significance of these additions to the belligerent ranks is perhaps
+hardly realised in Europe. Every one of them is a serious reverse in the
+economic war which Germany is waging, and every one makes it more
+difficult for Germans in America to keep up communication with Hamburg.</p>
+
+<p>Indeed, the tale of recent events reads like a mere series of German
+reverses, snatching away advantages already gained. In 1912, the treaty
+for the American purchase of the Danish Antilles was all but complete,
+when German influence in the Upper House of the Danish Parliament
+prevented ratification and thwarted, for the time, the plans of the
+United States. During the present war, the purchase was completed,
+Germany being impotent. Again, Germany, having acquired a strong
+position in Haiti, designed that the Haitian Republic should become a
+Teutonised base of activity, repudiating the Pax Americana and
+threatening the security of American sea-paths. The United States put
+out a hand, and this highly-coloured vision faded away. Cuba, Panamá,
+Guatemala, Nicaragua, Costa Rica, Haiti, Honduras&mdash;all of these in turn
+struck at Germany through the declaration of war<a name="FNanchor_3_3" id="FNanchor_3_3"></a><a href="#Footnote_3_3" class="fnanchor">[3]</a>.</p>
+
+<p>Yet Germany, beaten from point to point, still holds her ground in
+Mexico. One of the curious side-scenes of the great war was the attempt
+of the German Foreign Office to contrive an offensive alliance of Japan
+and Mexico against the United States. Mexico was to be rewarded by the
+recovery of Texas. This underhand plot against a neutral nation at peace
+with Germany collapsed at its inception. Yet the present German menace
+in Mexico is not to be despised. The rulers in the Mexican capital
+exhibit an ostentatious cordiality towards Potsdam and sometimes an
+almost petulant impatience towards the Allies. The German is the
+favoured one among foreigners in the republic. Supported by the German
+Legation, the German banks, and the countenance of the Mexican
+authorities, Germans are strengthening their economic hold, particularly
+through the acquisition of oil and mining properties. This advance has
+its political side: for hopes seem to be entertained that a militant
+power, inspired by Germany, may press upon the long southern frontier of
+the United States, disturb her pacific influence in the Antilles,
+threaten the security of her maritime routes, and interpose a barrier
+between her and her scientific frontier on the Isthmus of Panamá. Such
+schemes may sound fanciful, and no doubt in their entirety they are
+impracticable. But it would be a mistake to regard Germany as powerless
+or to undervalue her tenacious and intelligent opportunism. And, in any
+case, the economic position demands attention.</p>
+
+<p>A word may here be said about the German effort to hold up before the
+eyes of all South America the spectre of the "Yankee peril." These
+German efforts have not succeeded, as will be shown later. Yet it would
+be rash optimism to assume that they have won no temporary success.
+Correspondence published by the Washington authorities shows that the
+German Minister at Buenos Aires succeeded in inducing the Argentine
+Government to approach Chile and Bolivia with a view to a combination
+against the United States&mdash;a scheme which, if carried through, might
+have produced a split in the political system of the South American
+Republics. A similar tendency appeared in President Irigoyen's attempt
+to convoke a conference of neutral American states, an attempt which has
+had no result except the dispatch of Mexican missions to Buenos Aires.
+Such incidents cannot be ignored: they illustrate a movement which is
+not quite effete.</p>
+
+<p>From what has been said above it is obvious that German designs in
+Central America and the Antilles are not quite recent in their
+inception. The same is true of another field which for a generation past
+has attracted German ambitions. The flourishing self-contained
+German-speaking communities in Southern Brazil offered an attractive
+goal to an empire which was feverishly building ships, pursuing a
+maritime future and hunting for colonies. Here was a German colony in
+existence and almost constituting already an <i lang="la" xml:lang="la">imperium in imperio</i>.
+German emigrants, brought out by the Brazilian Emperors between 1825 and
+1860, had by thrifty and intelligent industry done much to develop the
+south; and their descendants&mdash;now estimated to number 400,000&mdash;inhabited
+German towns, with German schools, newspapers and churches, where even
+proclamations of the Brazilian Government were published in German.
+Although not a product of the modern German Empire, this <i lang="de" xml:lang="de">Deutschtum im
+Ausland</i> has been studiously cultivated by that empire through every
+possible agency, and especially by imperial grants to German schools,
+whose pupils were taught that they were Germans owing a prior allegiance
+to Germany. Some hope was entertained of carving a Teutonic state out of
+Brazil, perhaps to form nominally, at all events for a time, an
+independent republic. The disturbances in the south which followed the
+establishment of the Brazilian Republic appeared to favour this chance,
+which depended however on one condition, the countenance of Great
+Britain in order to cope with the opposition of the United States. But
+in any case the vigour and increase of the German element was to
+dominate Southern Brazil and help to bring that region into moral
+dependence upon Germany. That these designs were not viewed in South
+America as wholly imaginative, is proved by a recent incident. The
+Uruguayan Government, after revoking neutrality and seizing the interned
+German ships, asked and obtained an assurance of Argentine support, in
+case Uruguayan soil should be invaded by Germans from Southern Brazil.
+It may be added that recent German commercial penetration has been
+particularly active in Brazil.</p>
+
+<p>Owing to their remoteness and lesser numbers, the German communities in
+Southern Chile&mdash;whose first founders emigrated from Germany after the
+troubles of 1848&mdash;did not invite such large political designs, although
+there is reason to think that in the earlier part of the war, when a
+German war fleet still kept the sea, the manifold activities of Germany
+included some notion of obtaining a permanent footing in the Pacific.
+These German-speaking settlements have been carefully cultivated, by the
+same methods as those used in Brazil, to become a Germanising force in
+Chile and a German outpost on the west coast. In 1916 a Chilian-German
+League was established, to include all persons in Chile of German
+origin and language, with the intention that the members should use
+their influence as Chilian citizens, especially at election time, on
+behalf of German interests.</p>
+
+<p>Another influence which Germany strives to turn to account is the recent
+movement represented by the <i lang="es" xml:lang="es">Unión Ibero-Americana</i>, which seeks to draw
+together Spain and the Spanish-American republics. The German efforts to
+give a Teutonic tinge to the present Spanish movement of national
+revival look also towards Latin America, in the hope that friendship
+with Spain may tell against French and North American influence; and
+attempts are being made to exploit for that purpose the Ibero-American
+celebration which is to be held in Madrid in October, 1918.</p>
+
+<p>Lastly, in estimating political forces which have to be reckoned as
+factors in the conflict, some mention should be made of the very warm
+sentiment towards France which has prevailed for generations among
+educated South Americans&mdash;a sentiment which passes the bounds of mere
+private or even semi-official relations. This feeling is not universal,
+and would hardly be admitted in clerical and military circles. But it is
+sufficiently strong and general to be remotely compared to the sentiment
+which a Greek <ins title="Transcriber's Note: transliteration 'apoikia'"><span lang="el" xml:lang="el">&#7936;&#960;&#959;&#953;&#954;&#8055;&#945;</span></ins> usually entertained towards the
+mother-city. French thought permeates the work of Latin-American
+historians and political writers. French example and theory mould the
+form and the action of governments. Paris is felt to be the capital and
+the centre of inspiration for Latin civilisation. The debt of South
+America to France has been generously, and indeed affectionately, avowed
+by a succession of Argentine writers. A recent German semi-official
+utterance openly admits and deplores the historic attachment of South
+America to France. This attitude towards France can hardly fail to have
+some public weight; and there is no doubt that the course pursued by
+Brazil has been partly inspired by love of France.</p>
+
+
+
+<hr style="width: 65%;" />
+<h2><a name="CHAPTER_II" id="CHAPTER_II"></a>CHAPTER II</h2>
+
+<h3>THE GERMAN OUTLOOK ON LATIN AMERICA</h3>
+
+
+<p>"South America is the special theatre and object of German commercial
+industry." This emphatic declaration&mdash;reiterated in various forms by
+other German authorities&mdash;is the theme treated by Professor Gast,
+Director of the German South American Institute at <span lang="fr" xml:lang="fr">Aix-la-Chapelle</span>, in a
+pamphlet entitled <i lang="de" xml:lang="de">Deutschland und Süd-Amerika</i>, which may be regarded
+as a semi-official exposition of German objects and opportunities. The
+pamphlet appeared in the latter part of 1915. The events which have
+since occurred, however damaging they may be to German hopes, do not
+affect the views expressed. Since this advice from a German authority to
+Germans is a frank revelation of German views, it seems worth giving a
+very brief abstract of the main points, which the writer elaborates at
+great length, though he does not enter upon details of business method.</p>
+
+<p>"The German Press," says Professor Gast, "has never published so much
+about Latin America as during this war. This proves the importance of
+German relations there and the need of clear ideas concerning them. An
+economic competition, intense beyond all example, has sprung up
+concerning Latin America. The chief feature is the 'Financial Offensive'
+of the United States. The present grouping of competitors is accidental
+and false. The natural conflict is between the United States on the one
+side, and on the other side all industrial and exporting peoples,
+including Japan. The United States, the most dangerous competitor, is
+handicapped by the higher cost of production in North America and by the
+want of that facility of adaptation to customers' needs in which Germany
+excels. Yet the war has revealed the weakness of German reputation.
+Everywhere the prevailing strain is antipathy to Germany. It is the duty
+of Germans to put aside resentment and to strengthen their economic
+position. For trade with the two Americas is the chief source of
+prosperity for modern German commerce, particularly that of Hamburg. And
+after the war this trans-Oceanic trade will be a matter of yet more
+urgent national importance."</p>
+
+<p>This general survey is followed by an examination of special
+opportunities open to Germans. "Germany has not the many-sided relations
+with Latin America possessed by the Latin peoples of Europe, nor the
+politico-geographical advantages of the United States, nor the strong
+capitalist position of Great Britain. She must make the most of what she
+does possess. Her main asset is the German in South America. Every
+German abroad means the investment of interest-bearing capital for
+German cultural expansion. Two things are required of him, to win esteem
+by good work and to place his personal influence at the disposal of
+German national ends. The compact German communities in Brazil and in
+Southern Chile should be supported and organised from home, but not
+obtrusively, lest local feeling be aroused. They may perhaps serve
+Germany best by a partial mingling with the native population, so as to
+spread German culture and the taste for German goods. But, everywhere,
+all individual Germans are Germanising agents. The German merchant
+particularly is the missionary of cultural and political influence. So
+also the German soldier, particularly the German officers employed as
+instructors in Chile and Argentina. Most South American officers feel a
+professional sympathy for Germany. Hence spring useful personal
+friendships: to foster and enlarge these is an urgent duty. Germans
+exercise other professions which facilitate the patriotic diffusion of
+German culture. Such are physicians, who find peculiar opportunities in
+their intimate relations with families in their homes; the clergy, both
+Protestant and Roman Catholic; teachers, whose proved idealism is an
+admirable equipment for the spread of German culture; scientific men,
+journalists, surveyors, geologists, professors in training colleges. If
+possible they should work in combination, as they do in the German
+Scientific Club of Buenos Aires. Every one of them must use every
+professional opportunity and every item of personal influence and
+private friendship for the advantage of Germany.</p>
+
+<p>"A knowledge of German culture must be spread by a systematic
+educational movement. But this must be done tactfully. The German's
+propensity to foreign studies will aid him. He must equip himself by
+assimilating Latin culture, must use his knowledge of French culture,
+must oppose French influence by encouraging Spanish culture. His object
+is to catch souls; and, next to financial strength, the first necessity
+is tact."</p>
+
+<p>Two points stand out in this very candid statement. First, every German
+abroad is an item in the national balance-sheet; he must earn interest.
+The intimacy between the pastor and his flock, the physician's
+intercourse with his patient, are set down on the credit side of the
+national profit-and-loss account. Secondly, the most profitable method
+is a liberal education. There is something whimsical in the combination
+of inhuman material calculation with humanising influences, and one may
+smile at the heavy solemnity of the suggestion that the German will find
+it pay to acquire tact and to Latinise himself for outside intercourse.
+But the suggestion should not be dismissed as absurd. Whatever can be
+done by effort, study, and will-power the German will do. He is training
+himself to be a more formidable competitor than ever in the economic
+arena.</p>
+
+<p>Indeed, the pamphlet is valuable, not only as a hint for the future, but
+also as an avowal of methods which are already at work. One of these is
+a deliberate system of politic and profitable marriages. German clerks
+receive promotion only on condition that they marry native girls and
+establish homes in the country. This policy has been so steadily pursued
+that everywhere German business men have entered Latin-American families
+and exercise a Teutonising influence. Through marriage also, accompanied
+by skilled and profitable management, Germans acquire control of
+property and of trading concerns. Again, owing to their reputation for
+expert efficiency and scientific competence, Germans fill many posts of
+influence and trust in universities, scientific institutions and
+government departments. Argentina is an example. In the National
+University Germans control the engineering and chemical sections, where
+their pupils are trained to use German apparatus and methods. German
+curators in the Geological Museum receive early information as to any
+discoveries of minerals or oil. Germans employed as experts in the
+public service learn details of any public works proposed by the
+government or the municipalities. Reports on such schemes pass through
+their hands and, since estimates are not carefully checked, they are
+thus able to favour German trade at the expense of the Argentine
+tax-payer.</p>
+
+<p>In every city the German <i lang="de" xml:lang="de">Verein</i> unites the German community, so that
+Germans may avoid competition and may co-operate with one another and
+with Germans in the Fatherland. The bank and the merchant work in close
+combination and have at their disposal all the information gathered by
+German employees in other banks and in business firms. The German has
+been quick to anticipate others in occupying new ground: for example, in
+the remote but vast and productive region of Eastern Bolivia, watered by
+the three great navigable affluents of the Madeira, a region which is
+just beginning to awake to the promise of a great future, the German
+trader hitherto has scarcely had a competitor. Again, the German has won
+predominance in the electrical and chemical industries by applying his
+practical scientific aptitude to the supply of new wants. Lastly, the
+German is distinguished by close attention to detail and adaptation to
+local needs.</p>
+
+<p>Yet Germans note and deplore "a constant strain of antipathy to Germany,
+a wave of anti-German hate." The remedies suggested are: first, a more
+efficient German service of news, and secondly, "a systematic cultural
+activity, conducted with push and comprehensive inspiration."</p>
+
+<p>What is being done in Germany to realise these methods? First may be
+mentioned the various associations for extending German influence abroad
+and binding to the Fatherland all Germans living abroad, whether in
+South America or elsewhere. Such are the Pan-German League, the German
+Navy League, the League for Germanism abroad, the League for German Art
+abroad, the School League which gives support to German schools outside
+Germany, the German rifle club, with its headquarters in Nuremberg, to
+which rifle clubs abroad are affiliated, and, lastly, the Foreign
+Museum, recently founded under the highest official patronage, which
+arranges economic exhibitions in various German cities. Although these
+associations were not founded particularly for Latin-American objects,
+their present efforts are particularly bent in that direction, as the
+Pan-German League lately declared. But, besides these comprehensive
+agencies, Germany possesses three institutions specially devoted to
+Latin-American purposes. One of these existed before the war, namely the
+German South American Institute at <span lang="fr" xml:lang="fr">Aix-la-Chapelle</span>, to which the
+Imperial and Prussian authorities have entrusted "the cultivation of
+scientific and artistic relations with South and Central America on the
+lines of a general cultural policy." Its objects are to draw together
+German and South American students, to maintain a South American library
+and information bureau, to encourage in Germany the study of South
+American matters by prize essays, travelling scholarships and similar
+methods, and to use every means of making German intellectual work known
+to South Americans. The Institute publishes a Spanish monthly
+illustrated periodical, <i lang="es" xml:lang="es">El Mensajero de Ultramar</i>, and also a
+Portuguese version, <i lang="pt" xml:lang="pt">O Transatlántico</i>. These papers are well calculated
+to uphold German culture across the Atlantic: they are admirably got up
+and aim at presenting an attractive picture of German life and
+institutions, dwelling particularly on the steady continuance of German
+industry, artistic production and even sport during the war. The
+Institute also publishes a German periodical, strictly business-like and
+containing only technical illustrations, for the purpose of keeping
+Germans informed on Latin-American affairs.</p>
+
+<p>The Institute at Aix, although its ultimate object is mainly economic,
+leaves business methods and matters of immediate economic concern to
+other agencies. Before the war there flourished already in Germany a
+League for Argentina and one for Brazil. In 1915 these two Associations
+combined in order to form a German Economic League for South and Central
+America. A prospectus was issued and a meeting was held in Berlin under
+the presidency of Herr Dernburg, who spoke of the coming economic
+struggle and pointed out that German trade, except in the electrical
+industry, was not supported by large capital investments such as their
+rivals possessed. The dependence of South America on other industrial
+nations, owing to want of coal and iron, would facilitate German
+investment, to supply this defect. Germans had failed to make friends
+through not understanding the psychology of South Americans. German
+strength and practical energy must avoid arrogant pedagogic ways and
+must make their way through a tactful and sympathetic propaganda.</p>
+
+<p>At this meeting the league was inaugurated with 120 members. Very soon
+it numbered 1000. Among the associations which figure as members are the
+German Industrialist League, the German Mercantile League, the Berlin
+Chamber of Commerce, the South German Export League, the League for
+Germanism abroad, the Society for German Art abroad. The three great
+banks, known in Germany as the three D.'s, are members, so also the
+great Shipping Companies; also newspaper and publishing firms; also many
+of the great industrial syndicates. A notable feature in the work of the
+league is the maintenance of a club in Berlin where business men and
+other travellers from South America are welcomed. A great point is made
+of this work of personal cultivation. The object is to make by
+hospitable attentions a Germanophil convert of every Latin-American
+visitor to Berlin and send him back across the Atlantic a missionary for
+German culture and German business. But the principal aim of the league
+is to unite all Germans who have any business interests in any part of
+Latin America, so as to pool together their knowledge, their resources,
+and their efforts. In this economic war the Germans move, as it were, in
+mass formation. Branches of the league were speedily established in
+every one of the twenty-one American republics, and these branches
+co-operate actively with the parent society at home in the furtherance
+of German influence and economic advantage.</p>
+
+<p>A third institution, the Hamburg Ibero-American League, has been formed
+in the metropolis of German Latin-American trade. Already before the
+war, besides the usual trading organisations of a great port, Hamburg
+possessed a Technical High School which is practically a university of
+trade and industry; a Seminary for Romance languages and culture, which
+maintains a South American library; and a singularly complete bureau of
+information concerning all over-sea countries, which is known as the
+Hamburg Colonial Institute.</p>
+
+<p>But Hamburg still felt a want, which was supplied by the formation of
+the Hamburg Ibero-American League. Its objects are: (1) in Spain and
+Spanish America: to spread a knowledge of Germany's resources and to
+cultivate friendly relations in government departments, semi-official
+institutions and social, literary and scientific circles. To circulate
+the illustrated weekly <i lang="es" xml:lang="es">El Heraldo de Hamburgo</i>, also pamphlets in
+Spanish and Portuguese; to station confidential emissaries in
+appropriate posts; to encourage interchange of visits and to inculcate
+the advantages which Germany offers as a training-ground for every
+calling. (2) In Hamburg: to prepare for intercourse after the war by
+arranging lectures and by organising language courses in German, Spanish
+and Portuguese, and particularly to establish a <i lang="es" xml:lang="es">Centro Ibero-Americano</i>
+with club, reading room, and information bureau, a house fully equipped
+for the hospitable reception of travellers from the Peninsula and from
+South America. The league is to consist of twenty-two sections, one for
+Spain, one for Portugal, one for each of the twenty Latin-American
+republics, in order that all who have interests in any part of the
+Ibero-American world may support one another.</p>
+
+<p>A fourth association, the Germanic League for South America, has been
+formed more recently for the purpose of uniting together persons of
+German speech and origin in Latin America and preserving their Germanic
+character, particularly by means of German schools. This institution has
+a special significance just at the time when the Brazilian Government
+has determined that all its citizens shall be Brazilians and nothing
+else.</p>
+
+<p>The three leagues which have their headquarters in Berlin, Hamburg and
+<span lang="fr" xml:lang="fr">Aix-la-Chapelle</span> have been in active movement for some time, and there is
+evidence from South America that they do their work in a thorough and
+effective fashion and have won considerable success, particularly
+through cultivating the friendship of South American visitors to
+Germany.</p>
+
+<p>But in estimating German designs, we must look beyond these German
+leagues, which are merely an incidental part of German economic
+organisation. That subject far transcends the present topic, but
+embraces it so closely that the main outlines may be indicated. Most of
+the German industries are consolidated into cartels or syndicates in
+such a way as to eliminate competition, regulate prices and output,
+distribute risks or losses, facilitate the export of surplus products,
+and apportion business between the members of the cartel. The whole body
+of industrialists is united in league; merchants or exporters are
+similarly united; a small group of great banks, practically constituting
+one power, manages the financial side of the national industry and
+commerce with a singular mixture of daring and judgment, guided by a
+wonderfully complete enquiry system, a veritable international secret
+service; the great shipping companies, which coalesce more and more into
+a single huge national concern, work in close co-operation with
+organised industry and organised trade; railway transport is managed by
+the state so as to dovetail into the same machine: and the whole forms
+altogether a carefully constructed system of co-operation, cohesion and
+united action. That organisation has not fallen into abeyance during the
+present war. On the contrary, month by month it is being perfected,
+rounded off. Lastly, Germany has appointed, as it were, an economic
+headquarters staff, a small group of expert business men who for two
+years past have been devoting themselves to the working out of means for
+transferring Germany from a war basis to a peace basis with the least
+possible disturbance and delay. This higher command has its hand upon
+the levers of the whole machine, which, upon the conclusion of peace, is
+at once to resume with redoubled energy its interrupted task, industrial
+and commercial recovery, and particularly the economic conquest of Latin
+America.</p>
+
+<p>In order that we may know what Germany is doing, these German
+organisations have been noted here. It would be impertinent, in both
+senses of the word, to compare or to criticise British methods. The
+problem of British reorganisation is being studied by experts and worked
+out by those in authority, and it is constantly expounded in official
+publications. But, without attempting to give individual opinions, one
+may quote some of authority.</p>
+
+<p>"Great nations do not imitate." We may learn much in detail from the
+Germans; but Englishmen could not adopt the German system unless by
+first turning themselves into Prussians. Our people would never submit
+to Prussian methods of state control. Moreover all British experience
+shows that in this country such control would be disastrous. Yet
+competent authorities agree that immediate organisation is a necessity.
+It cannot be beyond the wit of Englishmen to devise means whereby
+British individual enterprise, common sense and self-reliance may work
+through methods of systematic organisation, combination, united action.
+From the friends of Britain everywhere comes the same warning. It is
+most appropriate to conclude with one uttered by a South American of
+unimpeachable authority, Don Pedro Cosio, former Uruguayan Finance
+Minister, who recently represented the Republic of Uruguay in this
+country. In a report to his government on the organisation of labour in
+the United Kingdom he writes, "The nation which is the first to organise
+its industry for the commercial campaign will be the one which will
+occupy the forefront in foreign markets."</p>
+
+
+
+<hr style="width: 65%;" />
+<h2><a name="CHAPTER_III" id="CHAPTER_III"></a>CHAPTER III</h2>
+
+<h3>THE ECONOMIC WAR AND ITS PROPAGANDA</h3>
+
+
+<p>"Economic War":&mdash;This reiterated German phrase is not mere metaphor. The
+Germans pursued in peace the operations of war. To them commerce meant
+not merely the pursuit of trade in peaceful rivalry with others, but a
+sustained effort to defeat and oust rivals and reduce to economic
+subjugation the lands penetrated. By plunging into open war, which was
+meant to continue and to confirm that process, the Germans have risked
+their previous gains. Their own weapons are turned against them. The
+economic character of the actual war and the efficacy of the economic
+weapon in the hands of the Allies become more and more evident. In the
+early months of the war this weapon was not wielded with thorough
+decision, and Germans beyond the Atlantic were able to carry on
+considerable European trade. But today the German merchant is striving
+to defend, against an overwhelming weight of maritime pressure, the
+ground which he had won through a generation of laborious and patient
+effort.</p>
+
+<p>This economic struggle covers all the shores of all the Oceans. Its
+Latin-American phase has a special interest owing to the remarkable
+position attained in those lands by the Germans, the high value which
+they attach to that position, and their special efforts to maintain it
+under present difficulties. The most varied ingenuity is called into
+play to circumvent the barrier which now cuts off those countries from
+Germany. Present risks and losses are viewed as part of the inevitable
+waste of war, as an outlay deliberately incurred in the all-important
+task of holding open the gate through which, upon the conclusion of
+peace, the fruits of German industry are at once to pour in an
+irresistible stream, in exchange for those raw materials which are
+urgently needed to feed the industrial life of Germany after the war.
+This is the constant preoccupation of German business circles&mdash;the need
+of raw materials. And this is the reason why Latin America, the great
+source of raw materials, is courted with eager hope and anxious
+apprehension.</p>
+
+<p>It is noticeable that a very large part of the cargoes condemned by the
+British Prize Court, as actually intended for the enemy though consigned
+to other pretended destinations, consists of goods from Latin America.
+For example, in August 1917 the Court condemned quantities of coffee,
+seized on a score of neutral steamers and ostensibly consigned to
+Scandinavian and Dutch merchants, but in fact shipped by a German firm
+at Santos for the parent house in Hamburg. Two months later, it was
+stated in court that nearly £400,000 worth of wool, shipped from Buenos
+Aires to the Swedish Army Administration at Gothenburg, had been seized
+by the British as being in fact destined for Leipzig. At the same time
+the Court condemned a number of manufactured rubber articles which had
+been found concealed in a passenger's clothing. On a later occasion,
+coffee and cocoa valued at nearly £200,000 were condemned, being part
+cargo of a Swedish ship bound from California to Gothenburg. They were
+consigned by a new and insignificant firm in San Francisco to various
+persons in Scandinavia, but were in fact on their way from Guatemala to
+Hamburg through Sweden.</p>
+
+<p>The elaborate webs spun by German traders and revealed by intercepted
+correspondence were exposed in the Prize Court. Their methods were to
+find persons in neutral countries as nominal consignees, to act as
+intermediaries for getting the goods to Germany; to set up bogus
+companies for the same purpose; to use false names, or names of persons
+having no genuine interest in the consignment, and to manufacture false
+documents in order to give the appearance of neutral business. This was
+done to evade capture by deceiving the belligerent searchers. In some
+instances these methods succeeded. Quantities of coffee, consigned to
+Scandinavia, managed to elude the allied warships and reach Hamburg.</p>
+
+<p>These are cases of import into Germany. The reverse process, export from
+Germany through neutrals, follows similar lines. German goods, falsely
+labelled and described as Swiss or Dutch or Scandinavian manufactures,
+have found their way across the Atlantic in neutral ships.</p>
+
+<p>The Post Office has also served as a channel of secret trade. Pictures
+in the Press have exhibited the odd ingenuity of these devices: how
+coffee from Brazil to Germany was found concealed in rolls of
+newspapers, and how thin slabs of rubber were sent by post as
+photographs, also how quantities of jewellery have been despatched from
+Germany for South America in letters and in bundles of samples or
+journals. Goods so sent from Germany through the Post Office are mostly
+such as combine small bulk with high value&mdash;especially drugs and
+jewellery.</p>
+
+<p>These partial examples, although each instance may seem small enough,
+indicate collectively a good deal of enemy trade which has found devious
+routes under stress of war. These man&oelig;uvres may seem at first sight
+merely trivial curiosities or at all events to have no more than
+ephemeral importance, since they were improvised to overcome temporary
+obstacles. But, apart from their intrinsic interest as episodes in one
+phase of the war and as evidence of the efficacy of Sea Power, these
+devices merit practical attention in view of proposals to fasten
+economic fetters upon Germany by the terms of peace, and in view of the
+odium which may tell against German commerce for years to come. German
+business men are preparing to meet these difficulties by continuing the
+method of exporting through neutral agents, and are proposing in some
+cases to transport to a neutral country the work of completing
+manufacture, in order that goods so produced may appear to be
+indisputably of non-German origin; and the Foreign Trade Department at
+Berlin has advised German merchants to employ, for some years after the
+war, travellers and agents who can pass as French or English. It would
+be unwise to underrate any instance of German inventive persistency.</p>
+
+<p>Before the United States came into the war, that country was the channel
+of much German trade with Latin America. That road is now closed. The
+United States Government has gone further. It refuses coal in North
+American ports to ships proceeding from South America to neutral
+countries in Europe, unless the innocence of the cargo can be
+conclusively proved. This regulation shows that the United States
+authorities have knowledge that the ultimate destination of much South
+American cargo, particularly from the Argentine Republic, has been
+Germany. The blockade becomes more stringent through the co-operation of
+the United States and of Brazil, and through the action of the statutory
+list of "persons and firms with whom persons and firms in the United
+Kingdom are prohibited from trading." British commerce is a big and
+living thing, and the prohibition hits very hard any firm placed on this
+Black List. One finds here not only Teutonic names, but also
+innocent-sounding Latin names: for if a Latin-American is found to be
+acting as agent or cloak for a German trader, he finds himself pilloried
+on the Black List beside the German. There are obvious ways of evasion.
+The name of a clerk or door-keeper or a lady type-writer may appear as
+consignee. A varied ingenuity has to be met by constant watchfulness,
+and the list is regularly altered and kept up to date. The Black List
+has been much criticised for omissions, which are sometimes due to
+motives of expediency. But the bitter complaints about its injustice are
+unsolicited testimony to its efficacy. A striking example of its working
+was manifested in September 1917. After the outbreak of war, such of the
+Chilian nitrate works as were owned by Germans were unable to sell their
+nitrate or even to obtain jute bags, the supply of which is in British
+control. The unsold stocks went on accumulating, until one by one the
+German nitrate works were compelled to close down. Long negotiations
+between Santiago and Berlin found at last a remedy for this waste. It
+was agreed that the large deposits of Chilian gold in Germany should be
+set against the German-owned nitrate in Chile. The Chilian Government
+bought the nitrate, and paid the German owners by drafts on Berlin,
+which were met out of the Chilian money deposits in Germany. Thus
+Germany received Chilian gold in exchange for the inaccessible nitrate,
+while the Chilian Government received nitrate in exchange for its
+inaccessible gold. Chile then sold the nitrate for American gold to the
+largest manufacturer of explosives in the United States. Thus, one
+result of the blockade and the statutory list is that this German
+nitrate goes to make munitions, to be hurled at the Germans on the
+French front from American guns. The German Government, by sanctioning
+this sale of explosive material to its enemies, gave evidence of its
+earnest desire to stand well with Chile. On the other hand, Germany was
+impelled to this agreement in order to obviate grave financial loss to
+Germans and especially to save a big Hamburg firm from disaster.</p>
+
+<p>The active entry of Brazil into the war has in great part superseded the
+action of the statutory list in that country: for Brazil has taken
+decisive measures towards Germans within her borders. All enemy
+enterprises are in the hands of government receivers. All contracts for
+purchase of coffee or other Brazilian products by Germans are null and
+void; and in cases where payments had been made by the German
+purchasers, all such payments must be handed over to the official
+receivers. The United States also publishes a Black List of firms with
+whom her citizens are forbidden to deal. Evasion of allied watchfulness
+becomes more and more difficult: yet ingenious, and sometimes successful
+efforts are made to find loopholes in the wall of the blockade.</p>
+
+<p>There are now in Buenos Aires nearly 150 Turkish firms&mdash;Levantines of
+every denomination, Mohammedan, Christian, Jewish. Some of these are
+long-established and well-reputed houses. But most of them have sprung
+up during the war. Some of them, starting with exiguous capital, have
+made large fortunes in a year or two of trade. This has been done by
+supplying to German black-listed firms goods imported direct from
+Manchester and Bradford. Through the close co-operation of the German
+bank with German trade, these Syrians and Armenians are enabled, by the
+Germans standing behind them, to pay cash against documents in place of
+the usual sixty to ninety days' credit, and thus have a great advantage
+over the British or allied trader. The British authorities now permit
+export only to certain registered Turkish firms. The restriction does
+something to limit the abuse of this kind of trading.</p>
+
+<p>Besides these ingenious efforts to keep open communication with Europe,
+there is another side of the commercial war. In the neutral states of
+Latin America the German business man is as ubiquitous and energetic as
+ever, nay more so as he has greater difficulties to contend with. So far
+as he can, he sells from accumulated stocks of German goods, for the
+German importing houses before the war had gathered great stocks,
+especially in Chile. Where this resource fails, he repairs his stock by
+buying anywhere. Up to April 1917 he bought largely in New York. Now he
+buys where he can and what he can&mdash;American goods, French goods, British
+goods&mdash;anything to hold the market until the ocean shall be free once
+more to German keels carrying German goods.</p>
+
+<p>From the Argentine Republic 6000 young Englishmen came home to serve
+Britain on the fields of France. The young German would have found
+difficulty in getting home, even had he wished to do so; so for the most
+part he stayed in the River Plate. Other Germans have been released from
+military service and sent out as commercial travellers; for the German
+Government regards this too as National War Service. Thus today there
+are three German commercial men in the River Plate to one Englishman.
+The resources and confidence of the German traders are surprising. They
+have bought great quantities of wool in the River Plate&mdash;not so much
+indeed as is generally supposed; for German emissaries, in order to
+force up the price of wool to the Allies, have methodically made
+specious but fictitious offers of high prices to sheep-farmers all over
+the Argentine Republic. Yet, even so, German traders hold large
+quantities both of wool and of grain. These have been purchased partly
+for selling at enhanced prices on the spot, but principally with a view
+to after-war trade and the supply of raw materials to Germany. These
+purchases are proof of firm belief in the future. Moreover, both in
+Chile and in Argentina the interned German ships await their after-war
+cargoes for Europe. And when the Chilian or Argentine asks whether the
+German will be free to use these ships when peace comes, the Englishman
+cannot reply. The ships are there, proof of Germany's future power to
+trade.</p>
+
+<p>And the Germans are active not only in trade. They have learnt from
+British example that the road to business in Latin America is the
+investment of capital. And, strange as it may seem, the German has
+peculiar opportunities of investment at the present time. Such limited
+trade as can be carried on yields great profits. There is difficulty
+about remitting funds to Germany; and in any case "victory war loans"
+and other investments in the Fatherland may seem less attractive than
+investments in those Latin-American lands which look forward to rapidly
+expanding prosperity after the war. Accordingly, the German merchant is
+not only buying raw materials; he is also taking a share in the movement
+of home manufactures which now offers peculiar opportunities to foreign
+enterprise. Moreover, German firms in Buenos Aires have invested largely
+in short loans to the Argentine Government. Besides these private
+investments, which, like all German activities, have their official
+side, loans have been repeatedly pressed on the Argentine Government,
+ostensibly by neutral financiers (first in the United States and
+afterwards in Spain) but in fact by Germany, evidently for immediate
+political as well as for ulterior economic objects. These offers have
+been declined. A German loan openly offered to Uruguay has also been
+refused.</p>
+
+<p>Obviously, the whole story of German war-efforts in Latin America cannot
+yet be told. Enough has been said to indicate the character and the
+intensity of those efforts. For this far western front Germany has
+mobilised a business army, specially trained for the nature of the
+country and for the kind of operations wherein it is to be engaged.
+These efforts and aspirations are best illustrated by a recent utterance
+from the Hamburg branch of the League for Germanism abroad:&mdash;"We should
+like to insist that South America, the main field of our activity for
+many years past, constitutes a great sphere. Wide areas, with great
+possibilities of development, but little cultivated hitherto, are
+waiting to be opened up. It must be our business to employ here all our
+strength in order to retain and to make useful to ourselves these
+countries with their markets and raw materials. What we have to do is to
+<i>arm for the Peace</i> and to collect money, in order to be able
+immediately to act with energy&mdash;with our whole strength and with
+adequate resources."</p>
+
+<hr style="width: 45%;" />
+
+<p>In this "arming for the Peace" there is one weapon which demands special
+mention, namely the influencing of opinion by printed propaganda.</p>
+
+<p>The German mobilisation of the Press is a vast business controlled by
+the State. Upon the outbreak of war this organisation undertook the
+special work of war propaganda through two newly formed departments: (1)
+Press Office for influencing neutrals, (2) News Service for Spanish- and
+Portuguese-speaking countries. This institution of a special
+Ibero-American service proves the prominence given to the work in the
+Spanish- and Portuguese-speaking lands. The last words obviously include
+the Peninsula as well as Latin America. Nor can the propaganda carried
+on in Spain be dissociated from that in Spanish America. "Spain is the
+way to South America," writes a Spaniard discussing this very point. The
+popular illustrated Spanish prints <i>A.B.C.</i> and <i lang="es" xml:lang="es">Blanco y Negro</i>, which
+carry on a vehement Germanophil propaganda, are carefully perused, as
+coming from "home," by Spanish emigrants throughout Latin America, who
+thus become, half unwittingly, disseminators of German views and of
+belief in German victory.</p>
+
+<p>For the first object of this propaganda is to represent Germany as
+invincible in war. This military propaganda is an essential part of
+economic efforts. The Germans hold up a picture of German sagacity,
+system, thoroughness, efficiency. They desire to impress as well as to
+persuade. They know the effect produced by their victory in 1870. Credit
+and confidence are the greatest of commercial assets; and in this case
+economic credit is to rest upon belief in military strength.</p>
+
+<p>In South America, as in Spain, the method is to capture the press, and
+so disseminate German war-news, pro-German articles, photographs and
+cartoons. But it was not enough to control or inspire existing
+newspapers. In many capitals the Germans started new journals, printed
+in the vernacular. Naturally, the chief effort was made in Buenos Aires.
+Early in the war, a German organ, <i lang="es" xml:lang="es">La Unión</i>, was founded, in order
+that the Porteño, as he walked the street or travelled by train or
+tramway, might have the German case daily and forcibly presented to him.
+Throughout Latin America, a dozen or more of newspapers have been thus
+founded for propaganda purposes, some of them illustrated by effective
+cartoons. The strangest examples of this journalistic campaign are two
+Turkish newspapers, <i lang="es" xml:lang="es">La Bandera Otomana</i> of Buenos Aires and <i lang="pt" xml:lang="pt">O Otomano</i>
+of São Pãolo, which urge the cause of the Central Powers among Orientals
+in those countries. Besides these purely German efforts, a host of
+newspapers, many of them the local journals of country towns, serve the
+German cause throughout Latin America, the newspaper offices sometimes
+acting as distributing agencies for periodicals printed in Germany in
+the Spanish tongue.</p>
+
+<p>For, besides German and Germanophil periodicals published in America,
+others are produced in Germany for circulation in those countries. The
+number and the excellent quality of these Spanish productions of the
+German printing-press are remarkable. <i lang="es" xml:lang="es">La Revista de la Exportación
+Alemana</i> is a most effective organ for German business, exhibiting side
+by side, in pictures and letter-press, triumphs in the field and
+triumphs of industry. The monthly <i lang="es" xml:lang="es">Mensajero de Ultramar</i> and the weekly
+<i lang="es" xml:lang="es">Heraldo de Hamburgo</i> have been already mentioned. Hamburg also produces
+the well-known weekly picture-paper, <i lang="de" xml:lang="de">Welt in Bild</i>, with letter-press
+in twelve languages. These well-written and well-printed newspapers are
+widely circulated in Latin America in order to uphold the German cause.</p>
+
+<p>In addition to these permanent publications, special war periodicals are
+issued, every one of them a German trumpet. Not least of these is the
+comic paper <i lang="es" xml:lang="es">La Guasa Internacional</i>, which holds up the Allies to
+ridicule and abhorrence in cartoons, squibs and sketches. A diary of the
+war with a review of political and military movements is given in the
+illustrated monthly <i lang="es" xml:lang="es">Crónica de la Guerra</i>. Another chronicle is <i lang="es" xml:lang="es">La
+Guerra Europea Mirada por un Sud-Americano</i>, a piece of war propaganda
+written by a Latin-American soldier, Señor Guerrero, who was, until
+recently, Peruvian military attaché at Berlin. But perhaps the most
+effective of these war periodicals is <i lang="es" xml:lang="es">La Gran Guerra en cuadros</i>, which
+presents, in a series of pictures, the war as meant to be seen by
+neutral eyes. All these periodicals attribute economic blunders and
+financial errors or weakness to the Allies, sometimes making adroit use
+of British or French self-criticisms: on the other hand, they magnify
+German economic strength and organisation. This main object appears in
+an article on "After-war commercial relations between Spanish America
+and Europe" published in <i lang="es" xml:lang="es">El Mensajero de Ultramar</i>, which argues that
+Germany will suffer least of all the belligerents from the effects of
+the war; and that afterwards she will be the best purchaser and also the
+most capable provider for Latin America. Such is the reiterated refrain
+of a host of periodical publications.</p>
+
+<p>In addition to periodicals, Germany pours over the Spanish-and
+Portuguese-speaking world a constant inundation of fly-leaves,
+photographs, pamphlets, books and miscellaneous war literature,
+preaching German strength, efficiency, humanity, and even the democratic
+character of German institutions.</p>
+
+<p>What is the result? Has German propaganda succeeded in moulding
+Latin-American opinion concerning the war? Opinion in those countries
+has been moved by an argument more potent than all the German
+propaganda, and that is the German submarine. The German offers to South
+America with one hand persuasive self-eulogies, while with the other
+hand he sinks her unarmed trading ships and drowns her sailors.
+Unrestricted submarine warfare and the barring of zones to navigation
+have drawn Brazil, by successive steps, into active belligerency, and
+have done much to bring about rupture of relations and declarations of
+war by other Latin-American republics. Yet it would be a mistake to
+conclude that German propaganda has entirely failed. The Germans
+certainly think it worth while to continue it. The pavements of Buenos
+Aires are sometimes ankle-deep with pro-neutrality and anti-ally
+leaflets. But it is principally through the persistent and reiterated
+voice of the newspaper press, aided by the unremitting personal efforts
+of every German and every friend of Germany, that she wages this
+secondary warfare, this strategy of moral influence, which mobilises
+public opinion, diffuses impressions, colours events, creates an
+atmosphere.</p>
+
+<p>A circular was lately issued to the German League in Chile urging that,
+if propaganda could delay the severance of diplomatic relations between
+Chile and Germany, even for a few weeks, it would help Germany and her
+allies to an extent of several millions, and cause damage to her enemies
+to the same amount. As the situation becomes more critical for Germany,
+her propaganda redoubles in intensity. "Public opinion," says Napoleon,
+"is a force invisible, mysterious, irresistible." The Germans recognise
+that force, and have done all that was in their power to sway it to
+their side. German persuasiveness has not wholly failed. But in this war
+of words one decisive word has yet to be spoken, and that word is
+Victory.</p>
+
+<p>Yet military victory is not the final word in the economic struggle nor
+in the propaganda used in its support. The German South American
+Institute urgently emphasises the need of a more thorough and more
+stable system of German news supply: and official steps are now being
+taken in Germany to consolidate and extend such a system, in order to
+provide a permanent support of German influence in the future. The
+present aim of her propaganda is not only to exhibit victories, but to
+prepare for possible defeat, while representing Germany as morally
+invincible and as able, in any event, not only to hold her own, but to
+extend and strengthen her position.</p>
+
+
+
+<hr style="width: 65%;" />
+<h2><a name="CHAPTER_IV" id="CHAPTER_IV"></a>CHAPTER IV</h2>
+
+<h3>THE RECOGNITION OF LATIN AMERICA</h3>
+
+
+<p>It has been necessary to speak at some length of the direction taken by
+German activities with regard to Latin America. In order to preserve due
+perspective, something should be said about activities on the part of
+others. For the German has no monopoly of intelligence and energy in
+these matters. Indeed, the methods of the various German Leagues for
+Latin America mentioned in the second chapter were prompted, in part at
+least, by observation of what was being done elsewhere, particularly in
+France and the United States: for all these matters are carefully
+watched in Germany, and are described in minute detail in the
+publications of those leagues.</p>
+
+<p>An American historian remarks that Europe and the United States have
+lately re-discovered Latin America; and a German observer describes
+South America as the Fair Helen of the business world&mdash;her charms
+admired and her favours sought by all industrial nations. These epigrams
+point to a comparatively recent movement, which might be described as
+the Recognition of Latin America. This is not a sudden new departure,
+for relations between those countries and Europe have been continuous.
+But, in the past, there has been much indifference and ignorance
+regarding these matters, except among those directly concerned in them.
+In recent years a fresh spirit has arisen, an enlivened interest and a
+desire for better knowledge and more cordial intercourse. The movement
+is natural and spontaneous rather than official. It owes little&mdash;at all
+events in Europe&mdash;to governments and chanceries, although these
+recognise its value and give it their countenance.</p>
+
+<p>It was pointed out above that French thought and French example have
+always exercised a profound influence on the Latin-American republics.
+Until recently, this influence made itself felt without much conscious
+observation or deliberate activity on the part of Frenchmen. Indeed,
+there was sometimes a disposition, which was not unknown in England
+also, to view the Latin-American in a satirical light. A changed
+attitude in France&mdash;a desire for cordial and equal intercourse&mdash;took
+definite shape in the formation of the <span lang="fr" xml:lang="fr">Comité France-Amérique</span> in 1906
+under the presidency of M. Gabriel Hanotaux. The objects of this society
+are to develop economic, intellectual and artistic relations between
+France and the nations of the New World, to attract students and
+travellers to France from the two Americas and welcome them cordially,
+to encourage every means of making France and America known to one
+another. The society soon numbered over 1000 members, and proceeded to
+found branches in Latin-American capitals, as well as in the United
+States and Canada. It publishes a monthly review entitled
+<i lang="fr" xml:lang="fr">France-Amérique</i>, dealing with every branch of life in the two
+Americas, and has formed a sub-section known as <span lang="fr" xml:lang="fr">Ligue française de
+propagande</span>, to spread in America a knowledge of French education and
+art, as well as French industrial products. The society has published a
+number of books concerning the history and present conditions of
+American countries.</p>
+
+<p>The same year, 1906, saw the foundation of the <span lang="fr" xml:lang="fr">Groupement des
+Universités et grandes Écoles de France pour les relations avec
+l'Amérique Latine</span>. This academic association, though it does not ignore
+the business side of foreign relations, is naturally more concerned with
+educational and intellectual matters. Its activities appear in the
+visits of French professors and lecturers to Latin-American capitals,
+the reception of Latin-American students in France, the study of
+Spanish-American history, literature and archaeology in French
+Universities, and in one apparently trivial but very practical
+detail&mdash;the reduction by one half of French Steamship Companies' fares
+to Latin-American students visiting France.</p>
+
+<p>The economic side of this French movement appears in the institution of
+a "Latin-American week," a kind of festival for propaganda and
+intercourse, to be celebrated annually in some great business centre of
+France. The inaugural seven days' meeting was held at Lyons in December
+1916. Sixty Latin-American delegates were present, and were met by 200
+French delegates from Paris, among them leading men representing every
+side of French life. The conference discussed every aspect of the
+relations between France and Latin America, and the means of extending
+and improving those relations.</p>
+
+<p>The cordiality of intercourse finds its most pleasant manifestation in
+the frequent visits to South America of distinguished Frenchmen&mdash;among
+them have been Anatole France and Clemenceau&mdash;who carry messages of
+sympathy across the Atlantic to crowded and enthusiastic gatherings in
+Latin-American cities.</p>
+
+<p>In the United States this double movement, intellectual and economic, is
+still more marked. Latin-American history and economics are regularly
+taught in the universities, and prizes are provided for essays on
+historical works on those lands. Harvard University has a special
+endowment for Latin-American studies, an Instructor in Latin-American
+history and a South American Library of 10,000 volumes; and the
+University, in order to encourage the entry of Latin-American students,
+dispenses with the use of the English language in the Entrance
+Examination in certain cases. The Jesuit traveller, Father Zahm, better
+known by his pen-name of Mozans, has presented his South American
+library to Notre Dame University, Indiana. The Rector of the Leland
+Stanford Junior University places at the disposal of the University his
+library of 7000 volumes on Brazil. Scholarships are granted in the
+Universities to Latin-American women students. In the year 1913,
+Latin-American students in American universities numbered 813. American
+scientific missions are at work in Latin America, as well as missions of
+teachers to study educational methods in those lands and to invite
+return visits to the United States. One hears, moreover, of a
+Spanish-American Athenæum at Washington, 2000 institutions teaching the
+Spanish language, 1700 clubs formed for the study of Latin America, new
+magazines dealing exclusively with those regions, Argentine men of
+letters received with an honoured public welcome, an Inter-American
+Round Table, founded by representative ladies of New York, who propose
+to hold annual meetings of women, to take place successively in the
+capitals of the American Republics.</p>
+
+<p>This educational and social movement accompanies and supports a great
+business effort directed towards Latin America. The latter has an
+obvious bearing on the subject of Pan-Americanism, which is treated in a
+later chapter: but it is convenient to indicate the facts here, as
+forming part of a general movement of approach by other peoples towards
+Latin America. The American business effort assumed concrete form at the
+beginning of the war, when the United States Government invited the
+Finance Ministers and leading bankers of all the American Republics to a
+Financial conference at Washington. All but Mexico and Haiti accepted.
+The conference met in March 1915. A committee was appointed for each
+republic, and their reports were submitted to a joint committee. The
+decisions so reached were unanimously accepted by the whole conference.
+They recommended a standard gold coin for the whole of America, also
+unification of regulations concerning classification of merchandise,
+customs, consular certificates and invoices, trade marks and kindred
+matters. Questions of banking facilities, transport and credit were also
+discussed.</p>
+
+<p>Furthermore, it was decided to institute an International High
+Commission, which should continue permanently the work of the
+conference, sitting in rotation in the capitals of the several
+republics. This commission met first in Buenos Aires in April 1916, and
+decided to create a Central Executive Council to consist of three
+members, namely the chairman, vice-chairman and secretary of the section
+representing whatever country should be at the time the headquarters of
+the High Commission. On the motion of Argentina it was unanimously
+agreed that the headquarters for the first year should be Washington.
+Thus the first Central Executive Council consisted of three North
+Americans, the three heads of the United States section of the
+International High Commission.</p>
+
+<p>During the last three years, North American capital has been poured into
+Latin America, notably into Brazil, although perhaps the most striking
+instance is the acquisition of three huge and profitable mining
+properties in Chile, producing copper and iron. American commissioners
+are studying the field; direct steamship communication between the two
+continents has been extended; and American banks have been opened in
+many South American cities. It is remarkable how large a space is given
+day by day to Latin America in the Daily Commerce Report and List of
+Trade Opportunities published by the United States Bureau of Foreign and
+Domestic Commerce. Meanwhile the Pan-American Union, housed in a
+magnificent palace at Washington, labours unceasingly to draw closer the
+political, economic, social, and intellectual relations.</p>
+
+<p>But in other directions, indeed in all directions, Latin-American
+economic and international relations are opening out and finding new
+roads. Canada has earned a high reputation by her industrial
+enterprises, and Canadian banks are being established in South American
+capitals. The Dutch too are opening banks and preparing to extend their
+trade. Japan, also, is drawing closer to this new Europe of the western
+hemisphere. Japanese immigration is increasing, not only to the
+republics of the Pacific coast, but also to Southern Brazil. The
+Japanese steamship service to the west coast has been extended, and
+lines of Japanese ships are now running, also, to Buenos Aires and Rio.
+Industrial Japan aims at substituting for German trade the production of
+goods formerly imported from Germany, and Japanese pioneers are
+travelling in South America to study and prepare the ground. Japanese
+relations with Chile are particularly close and friendly. Chile can
+supply iron and copper, which Japan wants; and in return Chile is
+prepared to take Japanese cotton and silk. Kaolin or china clay was
+lately discovered in Chile: a specimen was sent to Japan for trial; and,
+as a result, a china factory has been started in Chile, the skilled
+labour being provided by Japanese artisans. Truly, the whole world is
+drawing nearer to South America.</p>
+
+<p>What of the British position? The British "re-discovered" Latin America
+more than a century ago. England, as well as France, was the school of
+Miranda and Bolívar. England provided the sinews of war for the
+emancipation of these lands, and the British legion which served under
+Bolívar was saluted by him, on the battle-field, as <i lang="es" xml:lang="es">Salvadores de mi
+patria</i>. South America honours the name of Cochrane among the heroic
+figures which stand upon the threshold of independence: nor has she
+forgotten how Canning's generous statesmanship helped her to secure the
+fruits of victory. One may read, in great part, the history of the
+struggle for independence in Memoirs written by Englishmen who took part
+in it. And in succeeding years the British held in those countries a
+peculiar position of gratitude and respect. The first Argentine foreign
+treaty was with Great Britain. Uruguay owes her independence, in part at
+least, to the intervention of British diplomacy, which was held in equal
+honour at Buenos Aires and in Rio. The founder of the Pacific Steam
+Navigation Company was an American, who, failing to find support in his
+own country, went to England, and there launched his great scheme of
+maritime trade on the Pacific coast. The same American, William
+Wheelwright, was the founder of the Argentine railway system, through
+English capital and enterprise. Over 1000 millions sterling of British
+capital are invested in Latin America in the form of government loans
+and corporate enterprises whose capital can be counted, without
+reckoning private investments, such as ownership of land. Total British
+investments in the Argentine alone exceed 500 millions sterling. The
+British created the Chilian nitrate industry, in which Chilian and
+British ownership are now about equal. Our fathers and grandfathers
+dared much, risked much, lost much and gained much in Latin America, and
+have left us an unrivalled reputation for good work and steady
+integrity. <i lang="es" xml:lang="es">Palabra de Inglés</i>, "the word of an Englishman," is still a
+proverb throughout those countries.</p>
+
+<p>Yet there is truth in the remark of a German author that the British
+have made no "cultural efforts" in Latin America. They are viewed with
+respect rather than with an intimate cordiality which they have not
+sought. It has been said that an Argentine takes off his hat to an
+Englishman, but tucks his arm in that of a Frenchman. This absence of
+deliberate effort does not mean the absence of moral influence. An
+official of the Pan-American Union remarked to the present writer that
+the English had done a "wonderful work" in Argentina by introducing and
+spreading the game of football, which had taught lessons of fair play,
+voluntary disciplined combination and good humour in defeat. The Boy
+Scout movement has taken root throughout Latin America, holding up
+everywhere in the spirit of its work and in local Scout papers a high
+standard of honour, truthfulness and conduct. These are some examples of
+a widespread influence exerted by certain sides of English life and
+character. Yet a certain atmosphere of aloofness still envelopes the
+British in Latin America, and this attitude is reflected in England. The
+languages and the history of those lands have not received their due in
+our schools and colleges. It has been comparatively rare to find in this
+country a keen and well-informed interest in matters wherein our own
+people have had a far greater share than our neighbours on the European
+continent or in the United States. What is wanting is a breath of
+enthusiasm for a most picturesque past, a present situation of absorbing
+interest, and the prospect of a future which promises boundless
+possibilities.</p>
+
+<p>Yet the movement of recognition is making way among us. The number of
+descriptive books published in recent years concerning those countries
+points to a reviving interest. Our schools are providing Spanish
+classes: our universities are founding professorships or lectureships in
+the Spanish and Portuguese languages, and the study of Latin-American
+history is finding admission to its due academic place. We are beginning
+to perceive that the life of those countries touches us closely, and
+that some knowledge and thoughtful interest concerning them should be
+part of the mental equipment of an educated Englishman. Moreover, the
+recent establishment of an Anglo-Spanish Society and also of an
+Anglo-Portuguese and Brazilian Society indicates a growing disposition
+for sympathetic and reasonable intercourse with the peoples of the
+Ibero-American lands.</p>
+
+<p>It would be out of place here to talk of this or that defect in British
+business methods or to suggest possible amendments. Such matters may be
+left to business men. Mr Herbert Gibson, in the fascinating address
+which he lately gave in King's College, London, sets the matter on a
+higher plane. "I do not think," he says, "it is so much a question of
+this or that system of weights and measures, or of the insularity of our
+classes of goods, as a question of a more intimate and sympathetic
+understanding between the peoples themselves. Trade can no doubt go on
+without such an understanding; but, where it exists, commercial as well
+as political, social and intellectual relations are strengthened. It
+seems to me that where our relations with South America have weakened or
+at least where they have not progressively increased, is in that
+man-to-man understanding and sympathy that opened the doors of all South
+America to our grandfathers."</p>
+
+
+
+<hr style="width: 65%;" />
+<h2><a name="CHAPTER_V" id="CHAPTER_V"></a>CHAPTER V</h2>
+
+<h3>EFFECTS OF THE WAR ON THE REPUBLICS</h3>
+
+
+<p><i lang="es" xml:lang="es">El país de mañana</i>, "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.</p>
+
+<p>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.</p>
+
+<p>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 <i lang="fr" xml:lang="fr">amour-propre</i>, a lively touchiness concerning outside
+criticism&mdash;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.</p>
+
+<p>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&mdash;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.</p>
+
+<p>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.</p>
+
+<p>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&mdash;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.</p>
+
+<p>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.</p>
+
+<p>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.</p>
+
+<p>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&mdash;now perhaps the most
+precious of metals&mdash;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&mdash;common sense."</p>
+
+<p>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&mdash;just before the war&mdash;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.</p>
+
+<p>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.</p>
+
+<p>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 <i lang="es" xml:lang="es">Americanismo</i> 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&mdash;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.</p>
+
+<p>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&mdash;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&mdash;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&mdash;railways, telephones,
+tramways, motor-cars, all provided by the foreigner&mdash;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 <i lang="es" xml:lang="es">Soy Americano</i> fall quite naturally,
+with the addition <i lang="es" xml:lang="es">Colombiano</i> or <i lang="es" xml:lang="es">Argentino</i>. I have heard a South
+American speak in conversation of <i lang="es" xml:lang="es">La América Nuestra</i>, "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, <i lang="es" xml:lang="es">América Nuestra</i>. Which of us
+could now so speak of "Our Europe"?</p>
+
+<p>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."</p>
+
+<p>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.</p>
+
+<p>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 <i>Americanismo</i>, 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.</p>
+
+<p>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&mdash;a path not entirely of her own choosing&mdash;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.</p>
+
+<p>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&mdash;merely as an outpost so far&mdash;-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.</p>
+
+<p>This leads us to our last topic. We have discussed <i lang="es" xml:lang="es">Americanismo</i>, 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?</p>
+
+
+
+<hr style="width: 65%;" />
+<h2><a name="CHAPTER_VI" id="CHAPTER_VI"></a>CHAPTER VI</h2>
+
+<h3>PAN-AMERICANISM</h3>
+
+
+<p>The relations of Latin America with the United States are chiefly
+connected with those tendencies of United States policy which are
+associated with the name of Monroe. A survey of the Monroe Doctrine
+would here be out of place: but the main points bearing on the present
+situation may be indicated. The injunction imposed in 1823 by President
+Monroe upon European interference in America was intended to meet
+certain European designs which at that time seemed to endanger the
+"peace and safety" of the United States. But Monroe's declaration,
+although its immediate purpose was self-defence, involved a permanent
+protest against any European aggression in Latin America, and thus set
+up the United States as self-constituted champion of those countries.
+Such a position involves a certain superiority of attitude and cannot be
+very clearly distinguished from protection; and protection is apt to
+merge by gradual steps, often only half perceived and not deliberately
+intended, into Protectorate. Thus, the development of the Monroe
+Doctrine has followed two parallel lines of policy, protection against
+Europe and national self-assertion. This latter more positive aspect has
+impressed itself upon the public mind. The advances in the Caribbean
+region, which have been mentioned in the first chapter, were undertaken
+not in order to satisfy any doctrine or theory, but to satisfy the
+irresistible needs of a vigorous growing Power. But since, for a
+generation past, it has been expected of American statesmen that they
+should justify their orthodoxy as adherents of this doctrine, these
+steps towards protectorate or dominion have been explained in a series
+of public pronouncements as developments or examples of the doctrine.
+Naturally, therefore, the term "Monroe Doctrine" is popularly understood
+as connoting an imperial policy, a movement towards supremacy or
+hegemony.</p>
+
+<p>In any case, the obvious comment on the Monroe Doctrine is that it has
+indeed protected the American republics from European aggression, but
+has not protected them from American aggression. It has not protected
+Peru from Chile nor Mexico and Colombia from the United States. Again,
+it is a uni-lateral arrangement announced by one Power alone, on the
+assumption that this action would be taken for granted by the other
+American republics. This attitude does not entirely commend itself to
+those states, especially as they grow stronger and more conscious of
+their strength. American business men plainly assert that the Monroe
+Doctrine is bad for business<a name="FNanchor_4_4" id="FNanchor_4_4"></a><a href="#Footnote_4_4" class="fnanchor">[4]</a>, and warn their countrymen against
+straining after a fictitious inter-American sentiment&mdash;an attitude which
+"is often a cause for resentment, the more felt because seldom expressed
+by the courteous Latin<a name="FNanchor_5_5" id="FNanchor_5_5"></a><a href="#Footnote_5_5" class="fnanchor">[5]</a>." An article in the Pan-American Bulletin for
+December 1917 deserves particular attention. It cleaves through the
+difficulty by declaring, on the authority of Mr Root, that the Monroe
+Doctrine today means no more than what President Monroe meant a century
+ago: "The Monroe Doctrine is an assertion of the right of self-defence,
+that and nothing more. France and Britain are in the field to protect
+their Monroe Doctrine, the sovereignty and independence of Belgium ...
+there is nothing here ... in any way derogatory to the full sovereignty
+and independence of even the smallest of the Latin-American countries.
+It is true that the first proclamation of the Monroe Doctrine carried
+with it an implied offer of aid to the newly liberated Spanish-American
+colonies against proposed aggressions by the Holy Alliance.
+Self-protection was the motive ... it counts for nothing against a set
+purpose to defend one's own house that in so doing one performs an act
+by which one's neighbour is likewise defended." The article concludes by
+declaring that the Monroe Doctrine still prevails, strictly limited to
+its original sense, and that Pan-Americanism is an entirely distinct
+policy, which must not be confused with it.</p>
+
+<p>This re-statement of the Monroe Doctrine in its original terms, this
+declaration that United States policy is just like that of other
+nations, was probably prompted by the sense that the later developments
+of the Monroe Doctrine hindered the economic propaganda which is the
+main business of the Pan-American Union. But it has been further argued
+that the great war has exposed the weakness of Monroism, since, in the
+event of a German victory, nothing but superior force could prevent
+German invasion and occupation in Canada or in any trans-Atlantic
+country which might be at war with Germany. The arming of the United
+States has in some degree answered this objection, which is perhaps as
+contingent and theoretical as the doctrine itself. But the war has
+certainly emphasised the fact that emergencies must be met and settled
+as they arise, and that, since they cannot be foreseen, they cannot be
+covered by pre-conceived theories. At any rate a sentiment has for some
+time been gaining force that the inter-American policy of the United
+States calls for some kind of revision or re-statement; and the solution
+is sought in "Pan-Americanism."</p>
+
+<p>In seeking a definition of that phrase, European analogies will scarcely
+help us. The word "Pan-Germanism" usually implies some common action or
+interest among all those who speak the German language, and suggests
+some kind of racial bond or sense of kindred. The word "Pan-Slavism"
+appears to mean common action or interest among all who speak the Slav
+tongues, and similarly suggests some ethnological bond of kinship.
+Obviously Pan-Americanism must mean something quite different, for the
+American differs from his nearest southern neighbour, the Mexican, more
+widely than the Norwegian differs from the Greek. Moreover,
+"Pan-American" is a term of recent origin and still somewhat fluid in
+its application. It has sometimes been used merely as the equivalent of
+"European" or "Asiatic"; for the word "American" commonly bears a
+national sense and there is no convenient and accepted term covering the
+two Americas. For example, Mr Taft in his Presidential message of 1909
+spoke of "our Pan-American policy" much as a British Prime Minister
+might speak of "our European policy."</p>
+
+<p>Thus, the obvious application of the term is geographical. Yet Americans
+of authority are fully aware of the need of reservation in this
+geographical application. In 1909, the Director of the Pan-American
+Union pointed out, with some mortification, that on the occasion of the
+Pan-American Congress at Buenos Aires, most of the delegates from the
+north found that the easiest route from the chief city of North America
+to the chief city of South America lay through Europe. And an eminent
+American economist<a name="FNanchor_6_6" id="FNanchor_6_6"></a><a href="#Footnote_6_6" class="fnanchor">[6]</a> has lately uttered a warning against geographical
+misapprehensions, explaining that, whereas the Panamá Canal makes the
+west coast of South America an extension of the east coast of the United
+States, nevertheless the bulk of the South American population lives
+upon the Atlantic coast and prefers its traditional, customary and
+natural intercourse with Europe.</p>
+
+<p>But in considering the meaning of an incipient and growing force, it
+would be a mistake to dwell on possible limitations and difficulties;
+and it would be pedantic and unpractical to demand precise consistency
+or exact definition. We are rather concerned with aspirations,
+tendencies and formative ideas. Indeed, it might fairly be argued that
+these limitations, which are fully realised and avowed in North America,
+are no argument against the Pan-American movement, but rather an
+argument in support of it, as being a prudent and wholesome effort to
+overcome existing obstacles and promote a better understanding between
+neighbours.</p>
+
+<p>Pan-Americanism may be described as the movement which aims at uniting
+all the American republics:&mdash;one cannot say all the American countries;
+for in the map printed on the cover of the Pan-American Bulletin, Canada
+is left blank, as not forming part of "Pan-America." This omission alone
+is enough to prove, if proof were needed, that there is something
+artificial about Pan-Americanism: for obviously a New Yorker is more at
+home in Toronto or Halifax than in Rio or Buenos Aires; and there is a
+closer political similarity as well as a closer political bond between
+Washington and Ottawa than between Washington and Caracas. But, after
+all, most political combinations are largely artificial: they are
+products of statesmanship rather than of nature, or at all events they
+are products of nature assisted by statesmanship. And Pan-Americanism
+need not be less real or less valuable for being a construction
+deliberately planned instead of a spontaneous organism. But since the
+Pan-American movement is artificial, and a matter of policy and
+management, still rather formless, Americans of both continents differ
+considerably both as to its meaning and its usefulness, some declaring
+that it means nothing and is useless or even mischievous, while others
+regard it as a kind of perfect circle embracing all the future.</p>
+
+<p>Dr Usher, the American historian, dismisses the whole notion, on the
+ground that the United States and Latin America are utterly unlike,
+unsympathetic and even antipathetic to one another. Against this
+conclusion may be quoted two opinions from Chile and from Colombia, the
+two South American countries which have in the past shown most
+resentment at North American pretensions. "We want no papa" exclaimed a
+Chilian public man some years ago: yet in 1910 Señor Echeverria, Chilian
+consul in London, in a public lecture declared himself a decided
+believer in the benefits of Pan-Americanism, and as disposed to accept
+the sincerity of North American pacific and non-aggressive professions:
+and in the same year Señor Pérez Triana, the Colombian diplomatist,
+expressed a restrained but decided optimism concerning the benefits to
+be derived from the Pan-American Congresses, and pointed out that they
+had already brought about the general acceptance of the principle of
+arbitration among American Governments. These favourable views have
+regard to the practical benefits to be found in a certain course of
+action. The destiny of Pan-Americanism depends on the question whether
+these practical benefits are strong enough to overcome the barriers of
+race, language, religion, law, customs and tradition.</p>
+
+<p>The objections based upon these obstacles to union is not quite
+convincing. Incompatibility of temper is a bar to marriage: it is no bar
+to a practical and thoroughly friendly business understanding supported
+by mutual respect and methods of give and take. The tendencies of the
+age favour large combinations, overstepping the bounds of nationality
+and sometimes cutting across the lines of kindred and tradition. The
+challenge of Central Europe has raised up such a combination in Western
+Europe, and may help to give birth to a fresh and large grouping of the
+Powers of the western hemisphere.</p>
+
+<p>The question occurs whether, apart from reasons of practical
+convenience, any fundamental basis can be found for the union of
+communities so dissimilar in character and in action. These republics
+have this at least in common: they have all started life in "new lands";
+they are all trans-Atlantic offshoots from European monarchies; they
+have all thrown off political dependence upon Europe; they have all
+adopted republican forms of government; and, to whatever extent some of
+them may avoid democratic or even republican methods, they have all
+rejected the hereditary principle in government. Moreover, before the
+present crisis they all cultivated, so far as possible, a certain
+political aloofness from Europe: and they all aim at pursuing a destiny
+distinct from and, in their belief, transcending that of Europe through
+the inexhaustible possibilities offered by a New World.</p>
+
+<p>What success has attended the United States in her recent policy of
+approaching Latin America? Here we are on delicate ground, and whatever
+view be expressed is sure to meet with disagreement on the part of
+qualified judges. It is not easy to keep one's finger on the pulse of
+South American sentiment, nor can we expect to find unanimity. We can
+only watch indications and symptoms. In the past, on the whole, the
+attitude of the United States has been accepted in so far as it implied
+protection; but it has been warmly resented in so far as it seemed to
+imply any kind of protectorate. A certain arrogance in the public
+pretensions of the United States has been felt to be an offence and a
+menace; and this feeling has been intensified by the bearing of
+individual Americans. Yet a representative Chilian, Señor Vildósola,
+writing since the outbreak of the war, says, "The United States was not
+popular in Chile; her political attitude was rude and overbearing (<i lang="fr" xml:lang="fr">une
+politique brutale</i>); but in the past ten years this is changed. The Big
+Stick is relegated to the cellars of the White House. A certain
+refinement of forms has appeared in the Secretaryship of State, and a
+deeper knowledge of the peoples of the continent has induced the
+Government, press and people of the United States to treat Chile and her
+neighbours with a new respect and consideration." It may here be noted
+that Chile has lately entered into close economic relations with the
+United States, through the American acquisition of great mining
+properties in Chile and through the export of nitrate and copper to
+North America, largely carried in Chilian government transports.</p>
+
+<p>A representative Brazilian lately remarked to the present writer, "I
+believe there is no danger at all from the United States" and, referring
+to the preferential tariff granted by Brazil to certain imports from the
+United States, he added, "The Americans admit our coffee free, and we
+grant this abatement in return. They tax imports of things that they
+produce, and admit free the things they cannot produce. You English are
+different. You tax our coffee: you tax things you cannot produce and let
+in free the things you can produce." There can be no doubt that these
+close commercial relations and recent large American investments in
+Brazilian industries conduce to this tentative entente with the United
+States.</p>
+
+<p>The relations of the A.B.C. countries seem to indicate similar
+tendencies. It is probable that the main object, which led these three
+republics to entertain proposals of alliance, was security against
+possible danger from the United States. As these apprehensions
+diminished, the proposals were shelved, and the A.B.C. resolved itself
+into its component alphabet. There was another not less interesting
+reason for this dissolution: the proposed combination of the stronger
+South American states was not welcomed by the other republics, which
+felt that an arrangement of this kind did not favour the union and
+harmony of the whole continent, even though the professed intention was
+that it should serve as a nucleus which might gradually win the
+voluntary adhesion of other republics.</p>
+
+<p>Again, those republics which have been drawn closely under the influence
+of the United States, threw in their lot with her by declaring war
+against Germany&mdash;a decision which seems to be an act of gratitude, and a
+recognition that their position of dependence is not felt to be irksome
+or degrading.</p>
+
+<p>A recent act of the small but sturdy Republic of Uruguay seems to be
+very significant. After first severing relations with Germany and then
+rescinding her declaration of neutrality, Uruguay decreed that "No
+American State, if engaged in a war against a European State in defence
+of its rights, shall be treated as a belligerent by Uruguay." There is
+something a little whimsical in this previous sweeping aside of all
+contingencies, and one may imagine circumstances where the
+interpretation of this decree might puzzle the legal advisers of the
+Uruguayan Foreign Office. But the whole-hearted comprehensive intention
+of the decree is obvious. Uruguay is prepared to go the whole way in the
+direction of Pan-Americanism, and opens her arms equally to all the
+republics of both American continents.</p>
+
+<p>The proposal to establish a Pan-American University at Panamá may be
+worth mentioning here. The suggestion sounds like a product of the
+tropical spirit of those regions; but it may yet take significant shape.</p>
+
+<p>The United States, before entering the war, had largely increased her
+trade with Latin America. She succeeded in supplying, in great degree,
+the gaps left by Germany and Great Britain. Her entry into the war has
+deprived her of part of that advantage. But, on the other hand, the
+final decision, the manner in which it was made, and the resolute way in
+which it is being pursued, have vastly strengthened the moral standing
+of the United States in the New World. Those Latin-American states which
+are dependent on her joined her as belligerents. The action of Brazil,
+though taken independently and inspired more by French than by North
+American sympathies, followed North American action and cannot be wholly
+dissociated from it. Most of the Latin-American states, by their
+attitude towards the war, have as it were mounted guard behind the
+Allies. But the United States stands embattled in front of her southern
+neighbours, to fight the monster which threatens them all. The United
+States now, at last, appears, not merely as the theoretic propounder of
+a protection which was really ensured by the assent of Great Britain and
+the strength of the British fleet, but as the active champion in a
+common cause. This position has been strengthened by President Wilson's
+solemn disavowals of any aggressive intention. These promises have
+produced a marked impression in South America.</p>
+
+<p>The war has brought into view another practical reason for a closer
+inter-American understanding. As long as the United States remained
+neutral, no other American state, such as Brazil, could have incurred
+the risk of entering the war. In the past, while South American
+countries were able to keep apart from European politics, this
+complication or hindrance was latent and remote. But the period of
+aloofness is closed, and the American republics are taking their place
+among the nations of the world. Some kind of permanent entente, some
+standing arrangement for exchanging views and adjusting policy, would
+seem to be the best means of obviating any friction or awkwardness
+between north and south in respect of external relations. Thus a closer
+understanding with the United States may be regarded as a necessary
+condition of closer relations with the rest of the world.</p>
+
+<p>Many who know South America well will dissent from the suggestion that
+the war is helping to mould into some kind of shape the rather shadowy
+scheme called Pan-Americanism. They will point to the fact that most
+South Americans would rather have dealings with a European than with a
+North American and will recall what has been said elsewhere, namely,
+that the two Americas, both historically and actually, face severally
+towards Europe and not towards one another. All this is true; yet there
+are signs that the tendency called Pan-Americanism, hitherto a rather
+unsubstantial vision, may become a reality, differing indeed from the
+picture traced by some North American prophets, but resting upon more
+solid bases. We have touched upon business relations and the machinery
+for carrying them on. As to political relations, the growing strength of
+the greater South American republics counts for much. They feel
+themselves to be in a position to say, "We do not want your protection;
+but we value your equal friendship; for we are Americans as well as you.
+And we are willing to group ourselves together for the preservation and
+protection of that America which is ours." An equal understanding
+between equals&mdash;provided it is not too formal at first, and is allowed
+to be moulded by the course of events&mdash;would probably meet with a fairly
+general assent, which might gradually win over those holding aloof at
+first. Something of the kind seems to be taking form at the present
+time. The ultimate result may be the formation of a Concert of America,
+in which the more tranquil and educated elements may guide the whole.
+President Wilson has suggested some such arrangement, and proposes a
+combination of American republics as the best security against
+aggression by one American Power upon another.</p>
+
+<p>From what has been said above, it is obvious that some of the Caribbean
+lands would enter such a combination as satellites or subject-allies of
+the United States. Such an arrangement is not unparalleled and does not
+seem impracticable, since these small states have already entered the
+war in that capacity. Obviously, Pan-Americanism cannot aim at precise
+symmetry or theoretical consistency. It must be an elastic system, and
+must be prepared to meet and overcome difficulties. That is the purpose
+of its existence. But in general the first condition of a Pan-American
+combination would seem to be the abandonment of any pretensions to
+hegemony by any one state. Such pretensions have shattered the Concert
+of Europe. But America is a younger Europe which may take example&mdash;and
+warning too&mdash;from that old Europe which has given her such institutions
+and such order as she possesses. Thus a New World may indeed arise to
+redress the balance of the Old.</p>
+
+<hr style="width: 45%;" />
+
+<p>To the emancipation of Latin America Great Britain and the British
+contributed more than any other outside nation. In the subsequent
+development of those countries, Britain has had a large share. In the
+moral protection afforded to them by the attitude of the United States,
+the unostentatious and almost tacit support of Great Britain has counted
+for much. And those countries are now being drawn nearer to Great
+Britain and nearer to Europe than ever before. The question now
+arises:&mdash;In the closer grouping of American states now in process of
+formation, is Great Britain to stand aloof, a sympathetic but silent and
+inactive spectator? That this question has actually been raised in the
+United States, is shown by the following quotation from <i>The Times
+History of the War</i> (chapter 222, page 9): "As the <i>Philadelphia Ledger</i>
+put it 'it seemed an absurdity to talk of Pan-Americanism and in the
+same breath to ignore the fact that one of the greatest of the American
+Powers is not included in it.' The <i>New Republic</i> went further ...
+'Pan-Americanism,' it declared, 'is a tripod that cannot stand on two
+legs for ever. Only a combination of the Latin countries, the United
+States and Great Britain, that is to say a combination of all the
+American Powers, can make it a safe and useful organization in the world
+to-day.'"</p>
+
+<p>There is nothing new in this idea; for Bolívar, with singular
+magnanimity, invited Great Britain and the Kingdom of the Netherlands to
+send delegates to the Pan-American Congress which he attempted to
+assemble at Panamá in 1826: the circumstances of the time precluded an
+invitation to France. And now that Brazil and Cuba sit at the
+council-board of the Allies in Paris, a conception, which seemed
+feasible a century ago to a great imaginative mind, may perhaps not seem
+so very remote to a practical mind today. For the present epoch has
+brought home to all Americans of both continents a fact which has long
+been known to Canadians and Englishmen, namely that the ocean is no
+estranging gulf between nations. Today it is known that the geographical
+boundary which divides the peoples into two categories and separates the
+Old World of force from the New World of reason is not the Atlantic but
+the Rhine. Thus now, more than ever, does it seem a little incongruous
+that Washington should deny to Ottawa a community of American interests
+which is conceded to Caracas, Asunción and La Paz.</p>
+
+<p>Yet the scheme thus adumbrated is not at the present time clearly in
+sight. The inclusion of Canada would reverse the system which now
+confines Pan-Americanism to those states which have thrown off all
+political connexion with Europe together with all monarchical forms.
+Moreover, new and large combinations must keep within manageable limits.
+Yet it is significant that a Uruguayan public man, Señor Lopez Lomba, is
+now vigorously agitating, in Paris and in South America, for the
+formation of a Pan-Atlantic Union, wherein the three great Atlantic
+Powers, Britain, France and the United States, are to combine with the
+Latin-American states, in order to wield with full effect that economic
+weapon which is to decide the world conflict. A combination formed for
+an immediate purpose may well have further and larger results. It is an
+interesting speculation whether, in some not very remote future, the
+daughter nations of the Iberian Peninsula may not be drawn into a wide
+circle of understanding with Britain and her daughter nations. Thus,
+that grouping of the Latin and the Anglo-Saxon peoples, which has been
+formed under stress of war, might continue its beneficent working
+through generations of peace. Portugal and Brazil, Great Britain and the
+United States stand side by side. Most of the daughter nations of Spain
+have ranged themselves in the same ranks, beside France, their
+intellectual foster-mother. Spain may yet re-discover herself and her
+true place in the comity of nations. At all events it is a great thing
+to have proved that the line dividing freedom from autocracy does not
+divide the peoples of the New World from their mother Europe, or
+preclude the whole of the former from joining any great international
+league such as the future may have in store for succeeding generations.</p>
+
+
+
+<hr style="width: 65%;" />
+<h2><a name="LATIN-AMERICAN_REPUBLICS" id="LATIN-AMERICAN_REPUBLICS"></a>LATIN-AMERICAN REPUBLICS</h2>
+
+
+<h3>DATES OF INDEPENDENCE</h3>
+
+<p>The struggle of the Latin-American States for independence, viewed as a
+whole, extended from 1810 to 1824 and was marked by many vicissitudes.
+Buenos Aires, with most of the Argentine Provinces, practically achieved
+independence in 1810, but did not formally proclaim it till 1816.
+Paraguay detached herself both from Spain and from the Argentine
+Provinces in 1811. Spanish authority was overthrown in Montevideo in
+1814; but it was not until 1828 that that city was recognised as capital
+of an independent Republic, now known as the Republic of Uruguay. Chile
+practically achieved independence in 1818. New Granada, Venezuela and
+Quito were successively liberated from the Spaniards in 1819-22; and
+these three countries were united for a few years under the name of
+Colombia: but in 1829-30 this union broke up into the three Republics of
+Venezuela, Ecuador and New Granada (now known as Colombia). In 1824 the
+battle of Ayacucho gave independence to Peru; and the province of Upper
+Peru was formed into the Republic of Bolivia. The Brazilian monarchy
+became independent in 1821, and was converted into a Republic in 1889.
+Mexico became independent in 1821, and adopted Republican forms in 1823.
+The five provinces to the south-east of Mexico united in 1824 to form a
+Federal Republic under the name of Central America; but in 1839 this
+unstable union broke up into the five Republics of Guatemala, Honduras,
+Salvador, Nicaragua and Costa Rica. In consequence of events in France,
+the island of Haiti became independent in 1803; but Spain occupied the
+eastern part, Santo Domingo, in 1806 and held it for 16 years. The
+island formed one state from 1822 to 1844, in which year it was divided
+into the two existing Republics of Santo Domingo and Haiti. Cuba was
+separated from the Spanish monarchy and formed into a Republic in 1899.
+The province of Panamá seceded from Colombia in 1903 and became a
+separate Republic.</p>
+
+<hr style="width: 45%;" />
+
+<p>Since external recognition is an essential condition of complete
+independence, it may here be added that in 1822 the United States
+recognised the independence of Colombia, Chile, Buenos Aires and Mexico;
+and in January 1825 Great Britain recognised the independence of Buenos
+Aires, Colombia and Mexico. This formal recognition was preceded by
+amicable intercourse, by the dispatch of consuls, by relations of a
+commercial and semi-official kind, and by diplomatic action which gave
+countenance and support to the insurgent governments.</p>
+
+
+<h3>PRESENT STATUS (<span class="smcap">August 1918</span>) AS TOWARDS THE WAR</h3>
+
+<p>The following states have declared war with Germany: Brazil, Cuba,
+Panamá, Guatemala, Nicaragua, Costa Rica, Haiti, Honduras.</p>
+
+<p>Uruguay has broken off diplomatic relations with Germany, rescinded her
+edict of neutrality, offered the use of her ports to the warships of the
+Allies, and seized the German ships in her harbours.</p>
+
+<p>Peru has broken off relations with Germany, offered the use of her ports
+to the Allies and seized the German ships at Callao.</p>
+
+<p>Bolivia, Ecuador and Santo Domingo have broken off relations with
+Germany. The exact position of Santo Domingo is not easy to define.
+Since May 1916, the administration of that Republic has been practically
+controlled by the United States; and this intimate connexion with a
+belligerent power may perhaps be regarded as constituting a state of
+belligerency for the Dominican Republic.</p>
+
+<p>Mexico, Salvador, Venezuela, Colombia, Chile, Argentina and Paraguay
+maintain their neutrality and their diplomatic relations with Germany.</p>
+
+<hr style="width: 65%;" />
+<div class="center">
+CAMBRIDGE: PRINTED BY<br />
+J. B. PEACE, M.A.,<br />
+AT THE UNIVERSITY PRESS<br />
+</div>
+<hr style="width: 65%;" />
+
+<p><a name="MAP" id="MAP"></a></p>
+<div class="figcenter" style="width: 799px;">
+<img src="images/illus-088c.jpg" width="799" height="480" alt="SPANISH &amp; PORTUGUESE SETTLEMENTS IN AMERICA." title="" />
+</div>
+
+<div class="figcenter" style="width: 800px;">
+<img src="images/illus-089c.jpg" width="800" height="491" alt="" title="" />
+</div>
+<div class="bigskip"></div>
+
+
+<div class="footnotes"><h3>FOOTNOTES:</h3>
+
+<div class="footnote"><p><a name="Footnote_1_1" id="Footnote_1_1"></a><a href="#FNanchor_1_1"><span class="label">[1]</span></a> The reform of 1780-84, which established a quasi-French
+system of intendentes and subdelegados, need not here be treated.</p></div>
+
+<div class="footnote"><p><a name="Footnote_2_2" id="Footnote_2_2"></a><a href="#FNanchor_2_2"><span class="label">[2]</span></a> For the sake of brevity and clear relation to the present
+topic, this history is not here examined with reference to any theory or
+doctrine of policy. In order to explain the present position, the
+salient facts only are given, but not the comments and explanations of
+statesmen, nor the diplomatic passages leading to these events. One may
+digress for a moment to point out that a sufficient interpretation of
+these events is to be found in the natural expansion of a vigorous
+growing people. In the process of "winning the wilderness and conquering
+the continent" the United States found that a considerable part of the
+field was in nominal possession of those who were doing little to use or
+civilise it. These claims, which obstructed progress, were successively
+disposed of. Nor has it been found possible to limit that advance to
+certain indispensable acquisitions of territory. National security has
+demanded varying degrees of control over neighbouring peoples of
+inferior development. The process finds many historical parallels: and
+it is an intensely practical, not a theoretic, matter.</p></div>
+
+<div class="footnote"><p><a name="Footnote_3_3" id="Footnote_3_3"></a><a href="#FNanchor_3_3"><span class="label">[3]</span></a> It may be pointed out that for nearly seventy years the
+United States has acquired no territory from any Latin-American
+republic, except the perpetual lease of the canal zone, which was freely
+granted on most profitable conditions by the Republic of Panamá. Cuba
+and Panamá owe their separate existence, together with an unexampled
+prosperity and internal tranquillity, to the United States. In Nicaragua
+and Santo Domingo the great material benefits of interposition seem to
+outweigh sentimental objections. The financial obligations of Nicaragua
+have been adjusted through the help of the United States; and it may
+perhaps be felt that improved public solvency, material prosperity and
+internal security, though effected through outside aid, enhance instead
+of diminishing the national dignity.</p></div>
+
+<div class="footnote"><p><a name="Footnote_4_4" id="Footnote_4_4"></a><a href="#FNanchor_4_4"><span class="label">[4]</span></a> Notably an article by Mr Pratt, Chief of the United States
+Bureau of Commerce, in the <i>Annals of the American Academy of Social and
+Political Science</i>.</p></div>
+
+<div class="footnote"><p><a name="Footnote_5_5" id="Footnote_5_5"></a><a href="#FNanchor_5_5"><span class="label">[5]</span></a> Bulletin of the Pan-American Union, March 1918.</p></div>
+
+<div class="footnote"><p><a name="Footnote_6_6" id="Footnote_6_6"></a><a href="#FNanchor_6_6"><span class="label">[6]</span></a> Mr Pepper, former Foreign Trade Adviser to the United
+States Government, writing in the <i>Annals of the American Academy of
+Social and Political Science</i>.</p></div>
+</div>
+
+<div class="transnote">
+<h3>Transcriber's Notes:</h3>
+
+<p>Unusual punctuation and spellings retained when used consistently
+(for example, dispatch and despatch); otherwise changed to majority
+use, with the following exceptions:</p>
+
+<p>P. 24: Greek word transliterated ~apoikia~ appears as Greek script in
+original. See utf8 or html for original script.</p>
+
+<p>P. 76: hyphenated "to-day" retained, as quoted from other print
+source.</p>
+
+<p>P. 76: "organization" retained, as quoted from other print source.</p>
+</div>
+
+
+
+
+
+
+
+
+<pre>
+
+
+
+
+
+End of Project Gutenberg's South America and the War, by F. A. Kirkpatrick
+
+*** END OF THIS PROJECT GUTENBERG EBOOK SOUTH AMERICA AND THE WAR ***
+
+***** This file should be named 38793-h.htm or 38793-h.zip *****
+This and all associated files of various formats will be found in:
+        https://www.gutenberg.org/3/8/7/9/38793/
+
+Produced by Adrian Mastronardi, JoAnn Greenwood and the
+Online Distributed Proofreading Team at https://www.pgdp.net
+(This file was produced from images generously made
+available by The Internet Archive/American Libraries.)
+
+
+Updated editions will replace the previous one--the old editions
+will be renamed.
+
+Creating the works from public domain print editions means that no
+one owns a United States copyright in these works, so the Foundation
+(and you!) can copy and distribute it in the United States without
+permission and without paying copyright royalties.  Special rules,
+set forth in the General Terms of Use part of this license, apply to
+copying and distributing Project Gutenberg-tm electronic works to
+protect the PROJECT GUTENBERG-tm concept and trademark.  Project
+Gutenberg is a registered trademark, and may not be used if you
+charge for the eBooks, unless you receive specific permission.  If you
+do not charge anything for copies of this eBook, complying with the
+rules is very easy.  You may use this eBook for nearly any purpose
+such as creation of derivative works, reports, performances and
+research.  They may be modified and printed and given away--you may do
+practically ANYTHING with public domain eBooks.  Redistribution is
+subject to the trademark license, especially commercial
+redistribution.
+
+
+
+*** START: FULL LICENSE ***
+
+THE FULL PROJECT GUTENBERG LICENSE
+PLEASE READ THIS BEFORE YOU DISTRIBUTE OR USE THIS WORK
+
+To protect the Project Gutenberg-tm mission of promoting the free
+distribution of electronic works, by using or distributing this work
+(or any other work associated in any way with the phrase "Project
+Gutenberg"), you agree to comply with all the terms of the Full Project
+Gutenberg-tm License (available with this file or online at
+https://gutenberg.org/license).
+
+
+Section 1.  General Terms of Use and Redistributing Project Gutenberg-tm
+electronic works
+
+1.A.  By reading or using any part of this Project Gutenberg-tm
+electronic work, you indicate that you have read, understand, agree to
+and accept all the terms of this license and intellectual property
+(trademark/copyright) agreement.  If you do not agree to abide by all
+the terms of this agreement, you must cease using and return or destroy
+all copies of Project Gutenberg-tm electronic works in your possession.
+If you paid a fee for obtaining a copy of or access to a Project
+Gutenberg-tm electronic work and you do not agree to be bound by the
+terms of this agreement, you may obtain a refund from the person or
+entity to whom you paid the fee as set forth in paragraph 1.E.8.
+
+1.B.  "Project Gutenberg" is a registered trademark.  It may only be
+used on or associated in any way with an electronic work by people who
+agree to be bound by the terms of this agreement.  There are a few
+things that you can do with most Project Gutenberg-tm electronic works
+even without complying with the full terms of this agreement.  See
+paragraph 1.C below.  There are a lot of things you can do with Project
+Gutenberg-tm electronic works if you follow the terms of this agreement
+and help preserve free future access to Project Gutenberg-tm electronic
+works.  See paragraph 1.E below.
+
+1.C.  The Project Gutenberg Literary Archive Foundation ("the Foundation"
+or PGLAF), owns a compilation copyright in the collection of Project
+Gutenberg-tm electronic works.  Nearly all the individual works in the
+collection are in the public domain in the United States.  If an
+individual work is in the public domain in the United States and you are
+located in the United States, we do not claim a right to prevent you from
+copying, distributing, performing, displaying or creating derivative
+works based on the work as long as all references to Project Gutenberg
+are removed.  Of course, we hope that you will support the Project
+Gutenberg-tm mission of promoting free access to electronic works by
+freely sharing Project Gutenberg-tm works in compliance with the terms of
+this agreement for keeping the Project Gutenberg-tm name associated with
+the work.  You can easily comply with the terms of this agreement by
+keeping this work in the same format with its attached full Project
+Gutenberg-tm License when you share it without charge with others.
+
+1.D.  The copyright laws of the place where you are located also govern
+what you can do with this work.  Copyright laws in most countries are in
+a constant state of change.  If you are outside the United States, check
+the laws of your country in addition to the terms of this agreement
+before downloading, copying, displaying, performing, distributing or
+creating derivative works based on this work or any other Project
+Gutenberg-tm work.  The Foundation makes no representations concerning
+the copyright status of any work in any country outside the United
+States.
+
+1.E.  Unless you have removed all references to Project Gutenberg:
+
+1.E.1.  The following sentence, with active links to, or other immediate
+access to, the full Project Gutenberg-tm License must appear prominently
+whenever any copy of a Project Gutenberg-tm work (any work on which the
+phrase "Project Gutenberg" appears, or with which the phrase "Project
+Gutenberg" is associated) is accessed, displayed, performed, viewed,
+copied or distributed:
+
+This eBook is for the use of anyone anywhere at no cost and with
+almost no restrictions whatsoever.  You may copy it, give it away or
+re-use it under the terms of the Project Gutenberg License included
+with this eBook or online at www.gutenberg.org
+
+1.E.2.  If an individual Project Gutenberg-tm electronic work is derived
+from the public domain (does not contain a notice indicating that it is
+posted with permission of the copyright holder), the work can be copied
+and distributed to anyone in the United States without paying any fees
+or charges.  If you are redistributing or providing access to a work
+with the phrase "Project Gutenberg" associated with or appearing on the
+work, you must comply either with the requirements of paragraphs 1.E.1
+through 1.E.7 or obtain permission for the use of the work and the
+Project Gutenberg-tm trademark as set forth in paragraphs 1.E.8 or
+1.E.9.
+
+1.E.3.  If an individual Project Gutenberg-tm electronic work is posted
+with the permission of the copyright holder, your use and distribution
+must comply with both paragraphs 1.E.1 through 1.E.7 and any additional
+terms imposed by the copyright holder.  Additional terms will be linked
+to the Project Gutenberg-tm License for all works posted with the
+permission of the copyright holder found at the beginning of this work.
+
+1.E.4.  Do not unlink or detach or remove the full Project Gutenberg-tm
+License terms from this work, or any files containing a part of this
+work or any other work associated with Project Gutenberg-tm.
+
+1.E.5.  Do not copy, display, perform, distribute or redistribute this
+electronic work, or any part of this electronic work, without
+prominently displaying the sentence set forth in paragraph 1.E.1 with
+active links or immediate access to the full terms of the Project
+Gutenberg-tm License.
+
+1.E.6.  You may convert to and distribute this work in any binary,
+compressed, marked up, nonproprietary or proprietary form, including any
+word processing or hypertext form.  However, if you provide access to or
+distribute copies of a Project Gutenberg-tm work in a format other than
+"Plain Vanilla ASCII" or other format used in the official version
+posted on the official Project Gutenberg-tm web site (www.gutenberg.org),
+you must, at no additional cost, fee or expense to the user, provide a
+copy, a means of exporting a copy, or a means of obtaining a copy upon
+request, of the work in its original "Plain Vanilla ASCII" or other
+form.  Any alternate format must include the full Project Gutenberg-tm
+License as specified in paragraph 1.E.1.
+
+1.E.7.  Do not charge a fee for access to, viewing, displaying,
+performing, copying or distributing any Project Gutenberg-tm works
+unless you comply with paragraph 1.E.8 or 1.E.9.
+
+1.E.8.  You may charge a reasonable fee for copies of or providing
+access to or distributing Project Gutenberg-tm electronic works provided
+that
+
+- You pay a royalty fee of 20% of the gross profits you derive from
+     the use of Project Gutenberg-tm works calculated using the method
+     you already use to calculate your applicable taxes.  The fee is
+     owed to the owner of the Project Gutenberg-tm trademark, but he
+     has agreed to donate royalties under this paragraph to the
+     Project Gutenberg Literary Archive Foundation.  Royalty payments
+     must be paid within 60 days following each date on which you
+     prepare (or are legally required to prepare) your periodic tax
+     returns.  Royalty payments should be clearly marked as such and
+     sent to the Project Gutenberg Literary Archive Foundation at the
+     address specified in Section 4, "Information about donations to
+     the Project Gutenberg Literary Archive Foundation."
+
+- You provide a full refund of any money paid by a user who notifies
+     you in writing (or by e-mail) within 30 days of receipt that s/he
+     does not agree to the terms of the full Project Gutenberg-tm
+     License.  You must require such a user to return or
+     destroy all copies of the works possessed in a physical medium
+     and discontinue all use of and all access to other copies of
+     Project Gutenberg-tm works.
+
+- You provide, in accordance with paragraph 1.F.3, a full refund of any
+     money paid for a work or a replacement copy, if a defect in the
+     electronic work is discovered and reported to you within 90 days
+     of receipt of the work.
+
+- You comply with all other terms of this agreement for free
+     distribution of Project Gutenberg-tm works.
+
+1.E.9.  If you wish to charge a fee or distribute a Project Gutenberg-tm
+electronic work or group of works on different terms than are set
+forth in this agreement, you must obtain permission in writing from
+both the Project Gutenberg Literary Archive Foundation and Michael
+Hart, the owner of the Project Gutenberg-tm trademark.  Contact the
+Foundation as set forth in Section 3 below.
+
+1.F.
+
+1.F.1.  Project Gutenberg volunteers and employees expend considerable
+effort to identify, do copyright research on, transcribe and proofread
+public domain works in creating the Project Gutenberg-tm
+collection.  Despite these efforts, Project Gutenberg-tm electronic
+works, and the medium on which they may be stored, may contain
+"Defects," such as, but not limited to, incomplete, inaccurate or
+corrupt data, transcription errors, a copyright or other intellectual
+property infringement, a defective or damaged disk or other medium, a
+computer virus, or computer codes that damage or cannot be read by
+your equipment.
+
+1.F.2.  LIMITED WARRANTY, DISCLAIMER OF DAMAGES - Except for the "Right
+of Replacement or Refund" described in paragraph 1.F.3, the Project
+Gutenberg Literary Archive Foundation, the owner of the Project
+Gutenberg-tm trademark, and any other party distributing a Project
+Gutenberg-tm electronic work under this agreement, disclaim all
+liability to you for damages, costs and expenses, including legal
+fees.  YOU AGREE THAT YOU HAVE NO REMEDIES FOR NEGLIGENCE, STRICT
+LIABILITY, BREACH OF WARRANTY OR BREACH OF CONTRACT EXCEPT THOSE
+PROVIDED IN PARAGRAPH 1.F.3.  YOU AGREE THAT THE FOUNDATION, THE
+TRADEMARK OWNER, AND ANY DISTRIBUTOR UNDER THIS AGREEMENT WILL NOT BE
+LIABLE TO YOU FOR ACTUAL, DIRECT, INDIRECT, CONSEQUENTIAL, PUNITIVE OR
+INCIDENTAL DAMAGES EVEN IF YOU GIVE NOTICE OF THE POSSIBILITY OF SUCH
+DAMAGE.
+
+1.F.3.  LIMITED RIGHT OF REPLACEMENT OR REFUND - If you discover a
+defect in this electronic work within 90 days of receiving it, you can
+receive a refund of the money (if any) you paid for it by sending a
+written explanation to the person you received the work from.  If you
+received the work on a physical medium, you must return the medium with
+your written explanation.  The person or entity that provided you with
+the defective work may elect to provide a replacement copy in lieu of a
+refund.  If you received the work electronically, the person or entity
+providing it to you may choose to give you a second opportunity to
+receive the work electronically in lieu of a refund.  If the second copy
+is also defective, you may demand a refund in writing without further
+opportunities to fix the problem.
+
+1.F.4.  Except for the limited right of replacement or refund set forth
+in paragraph 1.F.3, this work is provided to you 'AS-IS' WITH NO OTHER
+WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO
+WARRANTIES OF MERCHANTIBILITY OR FITNESS FOR ANY PURPOSE.
+
+1.F.5.  Some states do not allow disclaimers of certain implied
+warranties or the exclusion or limitation of certain types of damages.
+If any disclaimer or limitation set forth in this agreement violates the
+law of the state applicable to this agreement, the agreement shall be
+interpreted to make the maximum disclaimer or limitation permitted by
+the applicable state law.  The invalidity or unenforceability of any
+provision of this agreement shall not void the remaining provisions.
+
+1.F.6.  INDEMNITY - You agree to indemnify and hold the Foundation, the
+trademark owner, any agent or employee of the Foundation, anyone
+providing copies of Project Gutenberg-tm electronic works in accordance
+with this agreement, and any volunteers associated with the production,
+promotion and distribution of Project Gutenberg-tm electronic works,
+harmless from all liability, costs and expenses, including legal fees,
+that arise directly or indirectly from any of the following which you do
+or cause to occur: (a) distribution of this or any Project Gutenberg-tm
+work, (b) alteration, modification, or additions or deletions to any
+Project Gutenberg-tm work, and (c) any Defect you cause.
+
+
+Section  2.  Information about the Mission of Project Gutenberg-tm
+
+Project Gutenberg-tm is synonymous with the free distribution of
+electronic works in formats readable by the widest variety of computers
+including obsolete, old, middle-aged and new computers.  It exists
+because of the efforts of hundreds of volunteers and donations from
+people in all walks of life.
+
+Volunteers and financial support to provide volunteers with the
+assistance they need are critical to reaching Project Gutenberg-tm's
+goals and ensuring that the Project Gutenberg-tm collection will
+remain freely available for generations to come.  In 2001, the Project
+Gutenberg Literary Archive Foundation was created to provide a secure
+and permanent future for Project Gutenberg-tm and future generations.
+To learn more about the Project Gutenberg Literary Archive Foundation
+and how your efforts and donations can help, see Sections 3 and 4
+and the Foundation web page at https://www.pglaf.org.
+
+
+Section 3.  Information about the Project Gutenberg Literary Archive
+Foundation
+
+The Project Gutenberg Literary Archive Foundation is a non profit
+501(c)(3) educational corporation organized under the laws of the
+state of Mississippi and granted tax exempt status by the Internal
+Revenue Service.  The Foundation's EIN or federal tax identification
+number is 64-6221541.  Its 501(c)(3) letter is posted at
+https://pglaf.org/fundraising.  Contributions to the Project Gutenberg
+Literary Archive Foundation are tax deductible to the full extent
+permitted by U.S. federal laws and your state's laws.
+
+The Foundation's principal office is located at 4557 Melan Dr. S.
+Fairbanks, AK, 99712., but its volunteers and employees are scattered
+throughout numerous locations.  Its business office is located at
+809 North 1500 West, Salt Lake City, UT 84116, (801) 596-1887, email
+business@pglaf.org.  Email contact links and up to date contact
+information can be found at the Foundation's web site and official
+page at https://pglaf.org
+
+For additional contact information:
+     Dr. Gregory B. Newby
+     Chief Executive and Director
+     gbnewby@pglaf.org
+
+
+Section 4.  Information about Donations to the Project Gutenberg
+Literary Archive Foundation
+
+Project Gutenberg-tm depends upon and cannot survive without wide
+spread public support and donations to carry out its mission of
+increasing the number of public domain and licensed works that can be
+freely distributed in machine readable form accessible by the widest
+array of equipment including outdated equipment.  Many small donations
+($1 to $5,000) are particularly important to maintaining tax exempt
+status with the IRS.
+
+The Foundation is committed to complying with the laws regulating
+charities and charitable donations in all 50 states of the United
+States.  Compliance requirements are not uniform and it takes a
+considerable effort, much paperwork and many fees to meet and keep up
+with these requirements.  We do not solicit donations in locations
+where we have not received written confirmation of compliance.  To
+SEND DONATIONS or determine the status of compliance for any
+particular state visit https://pglaf.org
+
+While we cannot and do not solicit contributions from states where we
+have not met the solicitation requirements, we know of no prohibition
+against accepting unsolicited donations from donors in such states who
+approach us with offers to donate.
+
+International donations are gratefully accepted, but we cannot make
+any statements concerning tax treatment of donations received from
+outside the United States.  U.S. laws alone swamp our small staff.
+
+Please check the Project Gutenberg Web pages for current donation
+methods and addresses.  Donations are accepted in a number of other
+ways including including checks, online payments and credit card
+donations.  To donate, please visit: https://pglaf.org/donate
+
+
+Section 5.  General Information About Project Gutenberg-tm electronic
+works.
+
+Professor Michael S. Hart was the originator of the Project Gutenberg-tm
+concept of a library of electronic works that could be freely shared
+with anyone.  For thirty years, he produced and distributed Project
+Gutenberg-tm eBooks with only a loose network of volunteer support.
+
+
+Project Gutenberg-tm eBooks are often created from several printed
+editions, all of which are confirmed as Public Domain in the U.S.
+unless a copyright notice is included.  Thus, we do not necessarily
+keep eBooks in compliance with any particular paper edition.
+
+
+Most people start at our Web site which has the main PG search facility:
+
+     https://www.gutenberg.org
+
+This Web site includes information about Project Gutenberg-tm,
+including how to make donations to the Project Gutenberg Literary
+Archive Foundation, how to help produce our new eBooks, and how to
+subscribe to our email newsletter to hear about new eBooks.
+
+
+</pre>
+
+</body>
+</html>
diff --git a/38793-h/images/illus-088c.jpg b/38793-h/images/illus-088c.jpg
new file mode 100644
index 0000000..78b4409
--- /dev/null
+++ b/38793-h/images/illus-088c.jpg
diff --git a/38793-h/images/illus-089c.jpg b/38793-h/images/illus-089c.jpg
new file mode 100644
index 0000000..ad6eba6
--- /dev/null
+++ b/38793-h/images/illus-089c.jpg
diff --git a/38793.txt b/38793.txt
new file mode 100644
index 0000000..ff1eb86
--- /dev/null
+++ b/38793.txt
@@ -0,0 +1,3315 @@
+Project Gutenberg's South America and the War, by F. A. Kirkpatrick
+
+This eBook is for the use of anyone anywhere at no cost and with
+almost no restrictions whatsoever.  You may copy it, give it away or
+re-use it under the terms of the Project Gutenberg License included
+with this eBook or online at www.gutenberg.org
+
+
+Title: South America and the War
+
+Author: F. A. Kirkpatrick
+
+Release Date: February 9, 2012 [EBook #38793]
+
+Language: English
+
+Character set encoding: ASCII
+
+*** START OF THIS PROJECT GUTENBERG EBOOK SOUTH AMERICA AND THE WAR ***
+
+
+
+
+Produced by Adrian Mastronardi, JoAnn Greenwood and the
+Online Distributed Proofreading Team at https://www.pgdp.net
+(This file was produced from images generously made
+available by The Internet Archive/American Libraries.)
+
+
+
+
+
+
+
+
+
+
+    SOUTH AMERICA AND
+    THE WAR
+
+    BEING THE SUBSTANCE OF
+    A COURSE OF LECTURES DELIVERED IN
+    THE UNIVERSITY OF LONDON, KING'S COLLEGE
+    UNDER THE TOOKE TRUST
+    IN THE LENT TERM
+    1918
+
+
+    BY
+
+    F. A. KIRKPATRICK, M.A.
+
+
+    CAMBRIDGE
+    AT THE UNIVERSITY PRESS
+    1918
+
+
+
+
+PREFACE
+
+
+This little book contains the substance, revised and adapted for
+publication, of lectures given in the Lent Term, 1918, at King's
+College, London, under the Tooke Trust for providing lectures on
+economic subjects. The course of lectures was in the first instance an
+endeavour to perform a war-service by drawing attention to the activity
+of the Germans in Latin America, and particularly to the ingenuity and
+tenacity of their efforts to hold their economic ground during the war,
+with a view to extending it after the conclusion of peace. A second
+object was to examine more generally the bearings of the war on those
+countries, and the influence of the present crisis on their development
+and status in the world.
+
+These two topics, though closely connected, are distinct. The first has
+an immediate and present importance, the second has a wider historic
+significance. The logical connexion between them may not seem obvious.
+Yet the first enquiry, concerning German war-efforts in Latin America,
+naturally and inevitably led to the second, concerning the larger issues
+involved. The former topic is treated in Chapters I, II and III, the
+latter in Chapters IV, V and VI. The term "South America" is used in the
+title of this book as a matter of customary convenience; but it is not
+meant to exclude the Antillean Republics or the Latin-American States
+stretching to the North-west of the Isthmus of Panama.
+
+Clearly, an essay of this kind, if it was to be of any use, had to be
+produced quickly. It was impossible to wait in hopes of achieving some
+kind of completeness. The immediate and urgent importance of the subject
+has been signally emphasised by the despatch of a special British
+Diplomatic Mission to the Latin-American Republics, and by the King's
+message addressed to British subjects in Latin America, in order to
+inculcate the spirit of collective effort.
+
+In the course of this essay frequent mention is made of the struggle for
+emancipation, of the part which Englishmen took in that struggle and of
+the great services rendered to the cause of independence by the action
+of British statesmen, notably Canning. In a book which aims mainly at a
+review of present conditions, it is impossible to enlarge upon these
+topics, since their adequate treatment would involve some consideration
+of political action on the European Continent and in the United States.
+But since this passage of past history bears closely on the present
+topic, it may be here mentioned that a brief account of these matters is
+given in the _Cambridge Modern History_, vol. X, chap. IX.
+
+The subject of German "peaceful penetration," which is incidentally
+illustrated but not expounded in these chapters, may be studied in M.
+Hauser's book entitled (in its English version) _Germany's Economic Grip
+upon the World_; also in _The Bloodless War_, translated from the
+Italian of Signor Ezio Gray. The character of that penetration, with its
+admirable as well as its odious features, is briefly and clearly set
+forth in a recent Report (Cd 9059) presented to the Board of Trade on
+enemy interests in British trade.
+
+I desire to express my indebtedness to _Le Bresil_, a weekly review of
+Latin-American affairs published in Paris; to _The Times_ newspaper,
+particularly the monthly _Trade Supplement_ and the South American
+number (Part 183) of _The Times History of the War_; to the weekly
+_South American Journal_; and to the monthly _British and Latin-American
+Trade Gazette_. The quotation on pages 40-41 is taken from _The Times_;
+and various other passages, not always verbally reproduced, are derived
+from the same source.
+
+It is impossible to thank by name all those who have placed at my
+disposal their knowledge of Latin-American countries. But I owe an
+especial debt of gratitude to the Master of Peterhouse for his aid and
+advice in the production of this book.
+
+The original matter has been considerably rearranged for purposes of
+publication. But wherever convenience permitted, the lecture form has
+been retained in order to indicate that the book owes its inception to
+King's College, London.
+
+                                                    F. A. K.
+
+    _August 15, 1918._
+
+
+
+
+CONTENTS
+
+
+                                                 PAGE
+
+    PREFACE                                         V
+
+    INTRODUCTION--GENERAL CONDITIONS IN
+    LATIN AMERICA                                   1
+
+    CHAP.
+
+    I.   POLITICAL CURRENTS AND FORCES             14
+
+    II.  THE GERMAN OUTLOOK ON LATIN AMERICA       25
+
+    III. THE ECONOMIC WAR AND ITS PROPAGANDA       34
+
+    IV.  THE RECOGNITION OF LATIN AMERICA          45
+
+    V.   EFFECTS OF THE WAR ON THE REPUBLICS       53
+
+    VI.  PAN-AMERICANISM                           66
+
+         LATIN-AMERICAN REPUBLICS                  78
+
+     The map at the end of the book shows the former Spanish and
+     Portuguese possessions in America, and also the existing
+     Latin-American Republics.
+
+
+
+
+SOUTH AMERICA AND THE WAR
+
+
+
+
+INTRODUCTION
+
+GENERAL CONDITIONS IN LATIN AMERICA
+
+
+The New World or Western Hemisphere consists of two continents. The
+greater part of the northern continent is occupied by two great Powers,
+which may be described as mainly Anglo-Saxon in origin and character.
+One of them, the Canadian Federation, is a monarchy, covering the
+northern part of the continent. The other, a republic, the United
+States, occupies the middle part. To the south and south-east of these
+two extensive and powerful countries stretch the twenty republics,
+mainly Iberian in origin and character, which constitute Latin America.
+These lands cover an area which is about twice the size of Europe or
+three times the size of the United States. Their population approaches
+eighty millions. Latin America, extending as it does through every
+habitable latitude from the north temperate zone to the Antarctic seas,
+possesses every climate and every variety of soil, and accordingly
+yields, or can be made to yield, all the vegetable and animal products
+of the whole world. Moreover, most of the republics also severally
+contain territory of every habitable altitude, so that a man can change
+his climate from torrid to temperate and from temperate to frigid simply
+by walking up-hill. Thus, equatorial lands can produce within the range
+of a few miles all the products of every zone. Most of the republics
+also furnish an abundance and variety of mineral products. The name
+Costa Rica, or Coast of Riches, which was given by the early discoverers
+to a small strip of the mainland, was prophetic of all its shores. And
+the fable of El Dorado, concerning its interior wealth, has proved to be
+not fabulous but only allegorical.
+
+
+_Geographical Grouping_
+
+The geographical distribution of these republics should be indicated.
+Three of them are island states of the Caribbean Sea. Cuba is the
+largest of the Antilles; Santo Domingo and Haiti divide between them the
+next largest. The rich tropical fertility of these West Indian isles has
+been a proverb for centuries and need not here be emphasised. Upon the
+mainland, the vast territory of Mexico and the five Central-American
+republics may be grouped together, forming as they do a kind of
+sub-continent, a narrowed continuation of North America. Through this
+region a broad mountain-mass curves from north-west to south-east. This
+configuration provides the characteristics and the varied products of
+every zone upon the same parallel of latitude: the torrid coastal
+strips, bordering both oceans; the beautiful, wholesome and productive
+region of the central plateau and long upland valleys; and finally the
+chilly inhospitable regions of the mountain heights. The long sweep of
+the country south-eastwards through the tropics also provides a wide
+range of character, from the cattle-rearing plains of Northern Mexico to
+the coffee and banana plantations of Costa Rica. Nowhere are lands of
+richer possibilities to be found.
+
+The small newly-created Republic of Panama completes this northern
+system of Latin-American countries. Thus, before coming to South America
+at all, we count ten Latin-American states, three in the Antilles, seven
+upon the mainland.
+
+The other ten republics lie within the continent of South America. That
+continent is shaped by nature in lines of a vast and imposing
+simplicity, so that it is possible to sketch its main features in a few
+words. It is divided broadly into mountain, forest and plain--the
+immense chain of the Andes, the vast Amazonian forests, the
+wide-stretching plains of the Pampa, and the colossal water system of
+the three rivers, Orinoco, Amazon, La Plata. The dominating element is
+the great backbone, the cordillera of the Andes. From the southern
+islands of Tierra del Fuego this cordillera stretches for 4000 miles
+along the Pacific coast to the northern peninsulas of the Spanish Main,
+and thence throws out a great eastward curve along the southern shore
+of the Caribbean Sea. This continuous mountain-wall, clinging closely to
+the Pacific coast, determines the whole character of the continent. In
+the tropical zone, the trade winds, blowing continually from the
+Atlantic, sweep across South America until they strike this towering
+mountain barrier. Then they shed their moisture on its eastern slopes,
+which give birth to the multitudinous upper waters of the Orinoco, the
+Amazon and the western affluents of the River Plate. The Amazon rather
+resembles a slowly moving inland sea, its twelve principal tributaries
+all surpassing the measure of European rivers. The River Plate pours
+into the ocean more water than all the rivers of Europe put together.
+The Orinoco, shorter but not less voluminous, drains a vast area with
+its 400 tributaries.
+
+But the Andes, whose forest-clad eastern slopes pour these immeasurable
+water-floods across the whole continent to the Atlantic, oppose to the
+Pacific, in the southern tropics, a bare dry wall of rock and yellow
+sand. In the north, _the garrua_, the winter mist of equatorial Peru,
+supplies moisture for cultivation. South of this region, the rainless
+desert stretches, a ribbon-like strip, between the mountains and the
+sea. Here, except in some transverse river-valleys, not a blade of grass
+can grow for over a thousand miles. Yet it is this very barrenness which
+has produced the materials of fertility for other lands in the form of
+guano and nitrate deposits. Far to the south, in the "roaring forties,"
+these conditions are reversed. Here, moisture-laden winds blow
+continually and stormily from the Pacific, feeding the dense and soaking
+forests of southern Chile. In the same latitudes, to the east of the
+Andes the terraced plains of Patagonia supply sheep pasture, thinly
+nourished by slight rainfall, although, over so vast an extent, these
+flocks amount to many millions. In the more temperate regions, between
+these zones of climatic extremes, more normal conditions prevail. On one
+side of the Andes are the rich valleys of Central Chile, on the other
+side the wide plains of the Argentine Pampa, formerly given over to
+pasture, now producing wheat, maize, flax, barley and oats as well as
+meat, hides and wool.
+
+South America has been called the fertile continent. Considering that
+most of the land lies within the tropics, it might be called the
+habitable continent--habitable in comfort and health by white men. In
+form, the continent may be roughly compared with Africa, but the
+comparison is in favour of South America. The traveller who has sailed
+along the east or west coast of tropical Africa meets a contrast on
+crossing the Atlantic. Along the Brazilian coast, he finds a succession
+of busy ports, crowded with the shipping of all nations--flourishing and
+growing cities, inhabited largely by Europeans living the normal life of
+Europe. The perennial trade winds, blowing from the sea, bring coolness
+and health; and, almost everywhere, the worker in the ports may make his
+home upon neighbouring hills. On the west coast, tropical conditions are
+even more striking. Here, a soft south wind blows continually from
+cooler airs, and the Antarctic current flowing northwards refreshes all
+the coast. At Lima, twelve degrees from the Line, one may wear European
+dress at midsummer and, descending a few miles to the coast, may plunge
+into a sea which is almost too cold. Moreover, in these regions the
+Andine valleys offer every climate, and a short journey from the coast
+leads one to uplands resembling southern Europe. Higher yet, beyond the
+first or western chain of the Andes stretches the vast and lofty plateau
+enclosed between the double or triple ranges of volcanic mountains. The
+western part of Bolivia, though tropical in situation, is a temperate
+land, lying as it does at a height of above 12,000 feet. This broad
+Bolivian plateau narrows northwards through Peru and finally contracts
+into the Ecuadorian "avenue of volcanoes." Here, in the very central
+torrid zone, a double line of towering peaks shoot their fires far above
+plains and slopes of perpetual snow. Thence the cordillera opens out
+northwards into the broad triple range of Colombia, which encloses wide
+river valleys of extraordinary richness and fertile savannahs, enjoying
+perpetual spring.
+
+Lastly, it should be noted that some of the best part of South America
+begins where Africa ends. Buenos Aires, Montevideo, Capetown and Sydney
+lie approximately in the same latitude, about 34 deg. or 35 deg. south. But some
+of the best parts of Chile and Argentina stretch far to the south of
+this latitude. Alone of the southern continents, South America thrusts
+itself far through the cool regions of the temperate zone.
+
+Hitherto, white settlement in South America has, in the main, followed
+the easiest lines, along the coast, upon the southern plains and up the
+river courses. Of the three great rivers, the Orinoco is the least
+developed, partly owing to natural difficulties--namely, an uneven
+shifting bed and great differences of water level--partly owing to
+artificial and political conditions; but in the wet season its waters
+admit navigation up the main stream and its principal western affluent,
+the Apure, almost to the foothills of the Colombian Andes; and the trade
+winds, blowing upstream, carry sailing craft half across the continent.
+Upon the Amazon system, Manaos, one of the great ports of Brazil, is 900
+miles from the sea: Iquitos, 2300 miles from salt water, is accessible
+to the smaller class of ocean steamers. Upon the Parana, 1000 miles from
+the ocean, stands the port of Asuncion, capital of Paraguay, accessible
+to ocean ships of shallow draught and to large river steamers:
+stern-wheel steamers can mount the Paraguay River 1000 miles farther to
+the remote Brazilian port of Cuyaba.
+
+The navigation of both these river systems, the Amazon and the River
+Plate, is limited or rather interrupted by the fourth great feature of
+the continent, the Brazilian plateau. The Parana and its affluents
+plunge from this plateau to the southern plain in tremendous waterfalls.
+The southern tributaries of the Amazon pierce their way down into the
+Amazonian valley along defiles, cataracts and rapids sometimes extending
+scores of miles. The Amazonian affluents are mostly navigable from the
+main river to the foot of these cascades. Above the cascades, there
+stretch fresh reaches of navigable water, providing many paths into the
+far interior. Similar conditions are found on the two branches of the
+River Tocantins and on other Brazilian rivers, such as the Sao Francisco
+and the Paranahyba. With the future growth of population, the
+construction of lateral railways and, later, perhaps the partial
+canalisation of rivers, there is no limit to the possibilities of
+internal water communication. The wealth of water power which awaits
+application is obvious. As to possibilities of water storage and
+irrigation, it suffices to say that on the Lower Orinoco and also on the
+Lower Amazon the difference of water level between wet and dry seasons
+is at least fifty feet, and most of the affluents rise and fall
+proportionately.
+
+The great Brazilian plateau, which has just been mentioned, further
+justifies the description of South America as the fertile continent--the
+region of habitable tropics. The vast scale of this plateau and its
+relation to the River Plate system justify its description here as a
+continental feature rather than a purely national feature, although it
+is mainly a national possession of Brazil. From the north-east shoulder
+of the Brazilian coast, this varied plateau, seamed by many clefts,
+stretches southwards and south-westward in a vast semi-circular sweep
+dividing the two river-systems. The Parana and its affluents plunge from
+this plateau towards the south and west. Northwards and eastwards it
+sends a multitude of streams to the Amazon and the Atlantic. These
+Brazilian uplands naturally vary in character and productiveness, but
+they are in great part suitable for white habitation and especially for
+the grazing of cattle. There is no winter; there is little of excessive
+or torrid heat; the grass grows all the year round; and in the
+neighbourhood of some rivers, the grasslands are annually renovated by
+seasonable and shallow floods.
+
+
+_Political Distribution_
+
+Among the republics, the United States of Brazil stand in a class apart,
+by virtue of the Portuguese origin and character of that country, its
+very distinct history and its immense size, occupying, as it does, more
+than half the continent. As to the republics of Spanish origin, no
+single classification suffices. The most obvious division is that which
+groups them into tropical and temperate countries. The five republics of
+Venezuela, Colombia, Ecuador, Peru and Bolivia, which lie wholly within
+the tropics, form a group of states which were closely connected in the
+early history of emancipation and which are still marked by a general
+though not very close similarity in respect of geography and
+ethnological conditions. Chile and Argentina lie mainly in the
+temperate zone; Uruguay wholly so; and these, with the southern parts of
+Brazil, are the regions most obviously suitable for white settlement.
+These three southern republics may also be described as the most
+European part of the continent, whereas the five tropical republics have
+a large admixture of indigenous, and, in parts, also of negro, blood.
+
+The small sub-tropical republic of Paraguay, secluded in the interior of
+the continent, does not quite fall into either group, but belongs to the
+system of River Plate countries. For the three Atlantic republics of the
+southern hemisphere, Argentina, Uruguay, Paraguay, form a distinct group
+or sub-continent known as the "River Plate" and thus suggest a second
+classification into the Rio-Platense and the Andine states. Lastly, a
+glance at the map shows that Colombia and Venezuela differ from all
+their southern neighbours in that they border upon the Caribbean Sea,
+that Mediterranean Sea of the New World which stretches between the two
+continents. Thus these two republics complete the circle of that
+Mediterranean system of lands--the Antilles, Mexico, Central America,
+Panama--in which the United States are the dominant Power and in which
+Great Britain, France and Holland are also members--one may perhaps say
+subsidiary members. Thus each of these republics of the Spanish Main has
+a dual character. They are on the one hand South American continental
+states; but their coasts also face the coasts of the United States, and
+their borders, to east and west, touch lands which are not purely
+Latin-American in character. Venezuela, both historically and actually,
+faces both ways. On the one hand she is the country of the Orinoco, of a
+vast continental interior: on the other hand she belongs also to the
+Antillean system: her eastern neighbour is British Guiana, and her
+territory almost locks fingers with the British island of Trinidad,
+which is in some sort the distributing commercial centre for all the
+Spanish Main. Thus Venezuela completes that long Antillean chain which
+curves from Florida to the Spanish Main, a chain whereof several links
+are in the possession of the United States. This dual character stands
+out in the early history of the country. For, during most of the
+colonial period, Venezuela was the only part of South America not
+attached to the Viceroyalty of Lima. Eastern Venezuela depended on the
+Audiencia of Santo Domingo and was thus connected with the Antilles and
+with the Viceroyalty of Mexico, that is to say with North America. Then
+followed a period of dependence on the Viceroyalty of Santa Fe de
+Bogota, until finally Venezuela was erected into a separate
+Captaincy-general.
+
+In the Republic of Colombia the dual position has been forced into
+prominence by recent events. On the one hand Colombia is a Pacific
+state, an Andine and continental country; yet her chief ports and
+arteries of communication lead northwards; and, until fifteen years ago,
+she bestrode the Isthmus of Panama. In 1903 that Isthmus passed under
+the control of the United States; and Colombia, which formerly included
+the province of Panama, now practically has the United States for her
+nearest neighbour.
+
+
+_Origin of Divisions_
+
+The connexion of these states with Europe dates from the first voyage of
+Columbus across the Atlantic and from Cabral's voyage to Brazil. The
+fabric of South America, as it stands today, was constructed in the main
+during the marvellous half-century from 1492 to 1542. During that time
+almost all the existing states took shape, and most of the present
+capitals were founded. That work is chiefly connected with five great
+names, Columbus, Balboa, Cortes, Magellan, Pizarro. Columbus and his
+companions or immediate successors founded the Spanish empire on the
+Antilles and the Spanish Main. Balboa sighted the South Sea, crossed the
+Isthmus, and claimed that ocean and all its shores for the Crown of
+Castile. Cortes established the empire of New Spain in North America.
+Pizarro, starting southwards from Panama, discovered the empire of the
+Incas, shattered their power and set in its place a Spanish Viceroyalty.
+
+The political divisions marked out at the conquest, which still subsist
+in the main, were determined by the course of exploration and conquest.
+When a separate condottiere hit upon a convenient site for a port and
+founded a city either upon the sea-board or in some inland situation
+accessible from the port, his work usually came to be recognised by the
+creation of a separate government. These conquistadores showed judgment
+and capacity in their choice of sites and in their marches inland, which
+naturally followed the most convenient lines of communication. In this
+way it came about that the political divisions in the Spanish empire
+were mainly determined by natural economic causes, acting through the
+rather haphazard experiments of practical men rather than through any
+deliberate theory. These natural economic conditions are permanent in
+character: they still persist, and they account in great part for the
+continuance of the chief political divisions after the achievement of
+independence and for the failure of ambitious schemes and aspirations
+after union or federation. Thus the separate "kingdoms" and
+"captaincies-general" of imperial Spain grew into states and are now
+growing into nations. An illustration may be found in the Australian
+colonies. In Australia, separate existence was at first an economic
+necessity, demanded by the early colonists, owing to the distinct paths
+of settlement and the distance between ports. Union, achieved later by
+means of federation, was the work of artificial efforts of statesmanship
+acting patiently through many difficulties.
+
+The "Indies" were dependencies or possessions of Spain down to the
+nineteenth century. Viceroys, captains-general and governors were sent
+out from the Peninsula to rule in the capitals: corregidores held office
+in the smaller towns[1]: audiencias, at once tribunals and councils,
+were established in important centres. The course of trade was regulated
+and was directed solely to the Peninsula. But the strength and the basis
+of the fabric lay in the municipalities, which, although the
+councillors' seats were purchased from the Crown or inherited from the
+original purchasers, nevertheless offered some kind of public career to
+the inhabitants and afforded the means of local public vitality.
+
+
+_Emancipation_
+
+When Napoleon stretched out his hand upon the Spanish royal family and
+upon the Spanish kingdom, these municipalities everywhere became the
+channels of patriotic protest and resistance to French pretensions.
+Owing to the collapse of the monarchy, the unsympathetic and even
+hostile attitude of successive popular authorities in Spain, and the
+action of certain resolute leaders guiding the natural development of
+local activities, these movements in America soon shaped towards
+separation. In every capital the municipality formed the nucleus of a
+junta or convention, which first assumed autonomy and then was forced by
+the logic of events, and particularly by Spanish attempts at repression,
+to claim republican independence. The resultant struggle was shared in
+common by all. Buenos Aires, having worked out for herself a fairly
+tranquil and facile revolution, sent troops under San Martin to aid
+Chile and to invade the royalist strongholds of Peru. Bolivar, the
+Caraqueno, liberator of the Spanish Main and of Quito, sent his soldiers
+southwards through Peru. Finally, Venezuelans and Argentines, from
+opposite ends of the continent, stood side by side in that battle on the
+Andine heights of Ayacucho which ended the Spanish Viceroyalty of Peru
+and the Spanish dominion on the continent. The peoples of South America,
+through all subsequent divisions, have never quite forgotten that in
+those days they made common cause and united in a combined effort to lay
+the foundations of what might be a common destiny.
+
+The emancipation of Mexico was a separate movement, which followed a
+rather different course owing to the Indian origin of most of the
+population. The issue was confused and hindered by early outbreaks,
+which were in great part Indian insurrections and class conflicts not
+directed to any clear aim and tainted by brigandage. An attempt was made
+to cut the tangle of conflicting interests by the establishment of an
+independent Mexican monarchy. In 1823 this was overthrown by a military
+revolt, which started the Mexican republic on its stormy career. The
+movement of separation from Spain inevitably embraced also the
+Captaincy-general of Guatemala, which chose separation from Mexico, and
+assumed the name of Central America--an artificial political term rather
+than a geographical description. Its five provinces eventually separated
+into the five republics of Central America.
+
+Events in Brazil shaped themselves differently. Upon the French invasion
+of Portugal in 1807-8, the Portuguese royal family migrated to Brazil
+and made Rio for a time the capital of the Portuguese dominions. When
+King John VI returned to Lisbon in 1821, he left as Regent of Brazil his
+son Dom Pedro, who, a few months later, supported by Brazilian opinion,
+threw off allegiance to his father and declared himself an independent
+sovereign. Thus was established, or rather continued, that Brazilian
+monarchy which subsisted down to 1889 and which secured to that country
+tranquillity and a continuous though rather sleepy progress during the
+stormy period through which Spanish America passed after the achievement
+of independence.
+
+For the long struggle had been mainly destructive. It had not only swept
+away Spanish authority, but had blurred and in some parts had erased all
+authority, all stability and order, had confused or obliterated whatever
+had existed of political experience or tradition, and had left the
+ignorant masses a prey to theorists and adventurers. The result was
+that, for at least a generation after the achievement of independence,
+most of the Spanish-American states were agitated by a turmoil of
+multitudinous constitutional experiments, confused conflict and
+destructive civil war, alternating with periods of rigorous and often
+tyrannical personal despotism. These movements have been perhaps
+unfairly judged in Europe. The young communities of Latin America,
+wanting in political experience and torn by a long and unavoidable
+struggle, were engaged in sweeping up the debris of their great
+revolution.
+
+The Republic of Chile in great part escaped that turmoil through the
+establishment, after a brief period of conflict, of a fairly stable
+aristocratic oligarchy of landed proprietors. Her three "revolutions"
+have been landmarks rather than interruptions in her historical
+development; for they were brief, decisive and conducive to a clearer
+constitutional definition. Argentina, after the fall of the Dictator
+Rosas in 1852, began to feel her way towards union and order, and may be
+said to have achieved that end with the general acceptance of her
+completed Federal Constitution in 1880. In the tropical republics
+constitutional agreement was rendered more difficult by the mixture of
+races, by geographical and climatic obstacles and by a comparative
+remoteness from European influences. And in the Caribbean lands our own
+generation has seen Presidential seats occupied by despots of the old
+type, usually men of imperious and resolute character, dauntless courage
+and unscrupulous indifference respecting means and methods, men
+sometimes risen from the lowest station through ruthless force and
+cunning. Indeed, Mexico, after a period of remarkable economic
+development under the long autocracy of Porfirio Diaz, relapsed, upon
+his fall in 1910-11, into the condition of a century ago.
+
+Yet it may be generally said that the decade following 1870 was the
+beginning of a new era for the Latin-American republics. The extension
+of steam navigation, the building of railways, machinery applied to
+agriculture, the influx of immigrants from Southern Europe and of
+capital from Northern Europe, the growing demand in Europe for
+foodstuffs and raw materials--all these things favoured, particularly in
+the south temperate zone, a rapid and very remarkable economic
+development which accompanied and aided a consolidation and closer
+cohesion of the social and political fabric.
+
+The outstanding fact in the recent history of Latin America and in her
+present relations to the war is this economic development, this great
+creation of new wealth during the past generation. It has been described
+in many modern books upon the various republics, and can be studied in
+Consular Reports, which read like romances. The Pampa has become one of
+the chief granaries of the world; and Buenos Aires, the greatest city of
+the southern hemisphere, is the centre of a railway system almost equal
+in extent to that of the United Kingdom. Chile has been enriched by
+nitrate and copper, Brazil by coffee and rubber. The High Andes have
+become once more a treasure-house of mineral wealth: tropical hills,
+valleys and coastal plains yield the riches of their vegetable products.
+
+The date assigned above as the beginning of this great economic increase
+is the date when the modern German Empire came into complete being. The
+recent growth of Latin America coincides with the birth and growth of
+the German industrial system. The organised energy, the patient
+assiduity, the expanding productiveness of Germany found a great
+opportunity in meeting the new needs of these rapidly growing countries.
+Germans won a remarkable position in those lands and had marked out for
+themselves a yet more ambitious future.
+
+During the same period the United States, having decisively consolidated
+the Union, has taken its place among the great Powers of the world. That
+republic has also altered its economic character: for whereas previously
+the inhabitants had been principally engaged in the internal development
+of a vast territory and had been exporters mainly of foodstuffs and raw
+materials, the growth of population has turned them into a commercial
+people exporting manufactured goods. This dual development, political
+and economic, has profoundly affected the relations of the United States
+with Latin America.
+
+Meantime the long-standing and intimate connexion between these lands
+and the maritime countries of Western Europe has followed a natural and
+uninterrupted course suffering no signal change except that, quickened
+by a newly-awakened and more active interest on the part of Europe, it
+has become closer, more sympathetic and more firmly based upon mutual
+respect and understanding.
+
+It is the object of the following pages to examine these matters with
+reference to the Great War, and also to consider generally the bearings
+of the war upon the development of the Latin-American countries.
+
+FOOTNOTE:
+
+[1] The reform of 1780-84, which established a quasi-French system of
+intendentes and subdelegados, need not here be treated.
+
+
+
+
+CHAPTER I
+
+POLITICAL CURRENTS AND FORCES
+
+
+In estimating the bearings of the great war upon these countries, it is
+necessary to review certain political forces and currents of public
+thought, which the Germans have attempted to divert to diplomatic or
+bellicose ends. Since these influences date in part from the era of
+independence or even from an earlier date, clearness of vision demands
+some historical retrospect. When, upon the achievement of independence,
+schemes of Latin-American or of South American union were found
+impracticable, it was inevitable that frontier disputes and national
+rivalries should lead to tension and sometimes to wars between states.
+When it is remembered that every one of the ten South American republics
+was divided from several neighbours by frontiers partly traversing
+half-explored and imperfectly mapped regions, it is perhaps surprising
+that such questions have been on the whole so amicably settled, and that
+those which are still pending do not appear to be menacing or dangerous.
+Owing to the paucity of population on the ill-defined and remote
+interior frontiers, many of these questions did not become urgent until
+the latter part of the nineteenth century, when the increasing
+seriousness of political interests, the steadying influences of material
+growth, and the pressure of outside opinion favoured peaceful
+settlement, usually by means of arbitration. It would be possible to
+compile a formidable list of such disputes. Most of them are questions
+concerning historical and geographical delimitation, of great local
+interest, but hardly of world-wide significance, although for a time the
+world was alarmed lest the frontier dispute of Argentina and Chile
+should excite a conflict between the two peoples engaged in the
+development of the south temperate zone, the natural seat of an
+important trans-Atlantic European civilisation.
+
+A good example of the character of such frontier questions, of their
+mode of settlement and of their possible exploitation for Teutonic
+purposes is to be found in the long-protracted dispute concerning the
+boundary between Venezuela and British Guiana--a dispute which only
+became acute when gold was discovered in the region under debate. In
+deference to external influence, the whole question was submitted to
+arbitration, and was decided according to historical evidence concerning
+the early course of settlement. This example is of further interest as
+illustrating the German method of seizing opportunities. For, today,
+German propaganda seeks to revive the bitterness of this episode, and
+cultivates the favour of Venezuela by holding out the prospect of the
+enlargement and enrichment of that republic through the absorption of
+British Guiana and Northern Brazil; just as the neighbouring Republic of
+Colombia is assured that German victory and the humiliation of the
+United States will mean the return of Panama to Colombia. It would be
+unwise to dismiss such persuasive lures as too fantastic even for the
+tropical atmosphere of the Spanish Main. Wherever opportunities occur,
+similar efforts are made to turn to account national jealousies,
+resentments and ambitions, and particularly to exacerbate the relations
+between Brazil and Argentina, between Peru and Chile, between Mexico and
+the United States.
+
+The rivalry between the Portuguese and Spanish elements in South America
+dates from early colonial times; and, as often happens in disputes
+between members of the same family, has been perhaps more warmly felt
+than the historic rivalry between Anglo-Saxon and Latin in America. The
+feeling was kept alive after emancipation by a dispute concerning the
+possession of the Banda Oriental (now the Uruguayan Republic), which
+geographically belonged rather to the Portuguese or Brazilian system,
+historically to the Spanish or Argentine system. During the eighteenth
+century Spaniards and Portuguese had disputed its dominion in a series
+of rival settlements, of wars and treaties, which finally left Spain in
+possession. The struggle for emancipation reopened the question. For
+three years (1825-28) Argentina and Brazil fought for possession. The
+quarrel was adjusted, through the mediation of British diplomacy, by the
+recognition of the Banda Oriental as a sovereign republic. Twenty years
+later, Rosas, dictator of Buenos Aires, attempted to reverse this
+decision by force of arms. His fall, partly brought about by Brazilian
+intervention, settled the question. But it has left traces upon the
+vivacious local sentiment of those young countries.
+
+Again, the war which Chile waged in 1879-83 against Bolivia and Peru
+ended in the occupation by Chile of Western Bolivia and also of the two
+southern provinces of Peru. The ultimate possession of these two
+provinces is still under discussion. Meantime, they remain in Chilian
+hands; and, although a friendlier atmosphere now prevails, diplomatic
+relations have never been resumed between Peru and Chile.
+
+In these inter-state questions Germany seeks her opportunity for fishing
+in troubled waters. German diplomacy and propaganda have striven to
+reopen these old sores and to impede Latin-American consolidation by
+setting state against state, and by fomenting or reviving latent
+ambitions of hegemony or aggrandisement. Those who favour Germany are to
+win great territorial rewards, at the expense of their misguided
+neighbours, upon the achievement of that German victory which is
+represented as certain. Particular efforts have been made to embroil
+Argentina with her neighbours; a prominent feature of this programme is
+the dismemberment of Brazil.
+
+But the most important of these political movements and the one which
+seemed to offer most promise to German schemes, is the long dispute
+between Mexico and her northern neighbour. This is a part of that
+process which since the beginning of the nineteenth century has
+radically altered the map of the Caribbean lands and has shifted the
+whole weight of political influence in that region. The chief effort of
+Germany is to exploit the historic rivalry between Anglo-Saxon America
+and Latin America, and to separate north from south by reviving the
+smart of past incidents and by stirring up apprehensions as to the
+future.
+
+Here, again, it is necessary to glance back and summarise the chief
+actual events of that history[2]. When Latin-American independence was
+achieved, between 1820 and 1824, the United States had already become
+the dominant power on the Mexican Gulf by the acquisition of Louisiana
+and Florida, and in 1826 she exercised the privileges of that position
+by prohibiting Mexican and Colombian designs for the emancipation of
+Cuba. In 1845 Texas, which nine years before had seceded from Mexico,
+was admitted to the Union, and in 1846-48 half the territory of the
+Mexican Republic was transferred to the United States by a process of
+conquest confirmed by purchase.
+
+A pause in advance followed, until events showed that Isthmian control
+was a national necessity to the United States. It suffices here to note
+the conclusion of a long diplomatic history. In 1903 the United States,
+having failed to obtain concessions of the desired kind from Colombia,
+supported the province of Panama in her secession from Colombia, and
+speedily obtained from the newly formed republic a perpetual lease of
+the canal zone, together with a practical protectorate over the Republic
+of Panama. The United States then proceeded to construct and fortify the
+canal. She also procured from Nicaragua exclusive rights concerning the
+construction of any canal through Nicaraguan territory, and erected in
+fact a kind of protectorate over that republic.
+
+Meanwhile, in the Antilles events were shaping towards control from the
+north. A long-standing trouble concerning Cuba culminated in the
+Spanish-American War of 1898, which brought about the annexation of
+Porto Rico and the Philippines to the United States, while Cuba became
+a republic under the tutelage of that Power. Five years later the United
+States, in order to save the Dominican Republic from European pressure,
+undertook the administration of the revenues of that state. In 1915 she
+interposed to suppress a revolution in Haiti. Finally last year (1917)
+she purchased from Denmark the islands of St Thomas and Santa Cruz.
+Recent rumours as to a proposed further purchase--that of Dutch
+Guiana--have been officially denied.
+
+These advances have not gone beyond the Caribbean area, where
+geographical conditions place the United States in a dominant position.
+Her relations with the more distant southern countries, not touching the
+Mediterranean Sea of the New World, fall into a different category and
+do not directly concern the immediate topic.
+
+But in the Caribbean area the United States has established a Sphere of
+Influence, not indeed explicitly defined as such, but recognised in
+effect by other governments and accepted by some at least of the
+republics occupying that region. The events of the last twenty years
+further indicate that the United States is undertaking the obligation,
+usual in such cases, of imposing a "Pax Americana." As in similar
+instances elsewhere, this Pax Americana has not quite clearly marked its
+geographical limit, nor is it guided by any theoretical consistency, but
+rather by the merits of the case and the test of immediate expediency in
+each instance. Thus, whereas the United States enforces peace in Haiti
+and definitely undertakes to maintain internal tranquillity in Cuba, she
+has on the other hand withdrawn from interposition in Mexico. The
+outside world has, on the whole, treated these matters as the concern of
+the United States and respected the working of the Pax Americana.
+
+Meanwhile, geographical proximity has favoured North American commerce,
+and in recent years more than half the trade of Central America was
+carried on with the United States.
+
+It has been necessary to define the situation, because it is accepted by
+the Allies, while it is at the same time jealously assailed by Germany.
+
+For Germany, too, has won a remarkable position in the same region by
+her economic efforts, which have also their political side. On the one
+hand Central America is in a kind of dependence upon the United States:
+on the other hand, it has been said, with obvious exaggeration, but with
+some epigrammatic truth, that Guatemala before the war had become a
+dependency of Germany in everything but the flag. German intelligence
+and industry had seized the opportunity offered in the recent
+development of a comparatively backward region. Peaceful penetration was
+a work of methodical effort, of organised combination. German firms,
+mostly of recent origin and sprung from small beginnings, always
+preferred to import from Germany in order to favour German trade. Indeed
+they were bound to do so by the terms of the credit granted to them by
+German banks or Hamburg export firms for starting their business. Young
+men came out from Germany--serious, plodding youths, working for small
+pay, taking few pleasures and immersed in business. German retail
+houses, either newly established or formed by the insinuation of Germans
+into native families or native firms, worked in close contact with the
+importing houses. The shipping companies worked with these latter and
+with the Hamburg firms. The chief German achievement in this region was
+the control of the coffee industry, which was acquired by the usual
+German combination of admirable industry, patience and intelligence with
+unscrupulous greed and cunning. Germans advanced money to the grateful
+owners of coffee estates on such terms that the native owner in course
+of time found himself bound hand and foot by ever-increasing debt; and
+the properties usually passed into the hands of the exacting foreign
+creditor, the former owner being often kept on as paid manager. In this
+way, besides doing a good stroke of business for himself, the German
+served Germany by increasing German interests in the country, providing
+cargo for German ships and helping to secure for Hamburg the coffee
+market of Europe. Every little advantage gained by an individual German
+was reckoned as a national gain, as the starting-point for another
+German step forwards. Nor was German advance confined to Guatemala: it
+penetrated all Central America as well as Mexico and the Antillean
+Republics, especially Haiti.
+
+But the maritime war, the British blockade and Black List and, finally,
+the participation of the United States have shaken the fabric thus
+laboriously raised. German ingenuity had overreached itself. For it was
+the insidious and cruel method of German land-grabbing in Guatemala
+which more than anything determined that republic to declare war, in
+order to escape from this ignominious economic dependence, this foreign
+control of a national industry. For it would be difficult to define a
+clear _casus belli_. But in the peculiar form of her declaration of war
+she told the world under which system she chose to live. For in April
+1918 Guatemala announced that thenceforth she occupied the same position
+as the United States towards the European belligerents.
+
+The iniquity of North American intervention in Nicaragua and the implied
+menace to other states were insistently preached by Germany throughout
+Central America; yet, a month later, Nicaragua also declared war,
+proclaiming at the same time her solidarity with the United States and
+with the other belligerent American Republics.
+
+In Costa Rica the Germans represented the non-recognition by the United
+States of President Tinoco, who owed his position to a _coup d'etat_, as
+a menacing insult to that Republic. Then, the same Germans intrigued to
+overthrow Tinoco on account of a Government proposal to tax coffee
+stored for future export. The upshot was that, in May 1918, Costa Rica
+declared war. Two months later Haiti took the same decisive step, and
+also Honduras.
+
+The significance of these additions to the belligerent ranks is perhaps
+hardly realised in Europe. Every one of them is a serious reverse in the
+economic war which Germany is waging, and every one makes it more
+difficult for Germans in America to keep up communication with Hamburg.
+
+Indeed, the tale of recent events reads like a mere series of German
+reverses, snatching away advantages already gained. In 1912, the treaty
+for the American purchase of the Danish Antilles was all but complete,
+when German influence in the Upper House of the Danish Parliament
+prevented ratification and thwarted, for the time, the plans of the
+United States. During the present war, the purchase was completed,
+Germany being impotent. Again, Germany, having acquired a strong
+position in Haiti, designed that the Haitian Republic should become a
+Teutonised base of activity, repudiating the Pax Americana and
+threatening the security of American sea-paths. The United States put
+out a hand, and this highly-coloured vision faded away. Cuba, Panama,
+Guatemala, Nicaragua, Costa Rica, Haiti, Honduras--all of these in turn
+struck at Germany through the declaration of war[3].
+
+Yet Germany, beaten from point to point, still holds her ground in
+Mexico. One of the curious side-scenes of the great war was the attempt
+of the German Foreign Office to contrive an offensive alliance of Japan
+and Mexico against the United States. Mexico was to be rewarded by the
+recovery of Texas. This underhand plot against a neutral nation at peace
+with Germany collapsed at its inception. Yet the present German menace
+in Mexico is not to be despised. The rulers in the Mexican capital
+exhibit an ostentatious cordiality towards Potsdam and sometimes an
+almost petulant impatience towards the Allies. The German is the
+favoured one among foreigners in the republic. Supported by the German
+Legation, the German banks, and the countenance of the Mexican
+authorities, Germans are strengthening their economic hold, particularly
+through the acquisition of oil and mining properties. This advance has
+its political side: for hopes seem to be entertained that a militant
+power, inspired by Germany, may press upon the long southern frontier of
+the United States, disturb her pacific influence in the Antilles,
+threaten the security of her maritime routes, and interpose a barrier
+between her and her scientific frontier on the Isthmus of Panama. Such
+schemes may sound fanciful, and no doubt in their entirety they are
+impracticable. But it would be a mistake to regard Germany as powerless
+or to undervalue her tenacious and intelligent opportunism. And, in any
+case, the economic position demands attention.
+
+A word may here be said about the German effort to hold up before the
+eyes of all South America the spectre of the "Yankee peril." These
+German efforts have not succeeded, as will be shown later. Yet it would
+be rash optimism to assume that they have won no temporary success.
+Correspondence published by the Washington authorities shows that the
+German Minister at Buenos Aires succeeded in inducing the Argentine
+Government to approach Chile and Bolivia with a view to a combination
+against the United States--a scheme which, if carried through, might
+have produced a split in the political system of the South American
+Republics. A similar tendency appeared in President Irigoyen's attempt
+to convoke a conference of neutral American states, an attempt which has
+had no result except the dispatch of Mexican missions to Buenos Aires.
+Such incidents cannot be ignored: they illustrate a movement which is
+not quite effete.
+
+From what has been said above it is obvious that German designs in
+Central America and the Antilles are not quite recent in their
+inception. The same is true of another field which for a generation past
+has attracted German ambitions. The flourishing self-contained
+German-speaking communities in Southern Brazil offered an attractive
+goal to an empire which was feverishly building ships, pursuing a
+maritime future and hunting for colonies. Here was a German colony in
+existence and almost constituting already an _imperium in imperio_.
+German emigrants, brought out by the Brazilian Emperors between 1825 and
+1860, had by thrifty and intelligent industry done much to develop the
+south; and their descendants--now estimated to number 400,000--inhabited
+German towns, with German schools, newspapers and churches, where even
+proclamations of the Brazilian Government were published in German.
+Although not a product of the modern German Empire, this _Deutschtum im
+Ausland_ has been studiously cultivated by that empire through every
+possible agency, and especially by imperial grants to German schools,
+whose pupils were taught that they were Germans owing a prior allegiance
+to Germany. Some hope was entertained of carving a Teutonic state out of
+Brazil, perhaps to form nominally, at all events for a time, an
+independent republic. The disturbances in the south which followed the
+establishment of the Brazilian Republic appeared to favour this chance,
+which depended however on one condition, the countenance of Great
+Britain in order to cope with the opposition of the United States. But
+in any case the vigour and increase of the German element was to
+dominate Southern Brazil and help to bring that region into moral
+dependence upon Germany. That these designs were not viewed in South
+America as wholly imaginative, is proved by a recent incident. The
+Uruguayan Government, after revoking neutrality and seizing the interned
+German ships, asked and obtained an assurance of Argentine support, in
+case Uruguayan soil should be invaded by Germans from Southern Brazil.
+It may be added that recent German commercial penetration has been
+particularly active in Brazil.
+
+Owing to their remoteness and lesser numbers, the German communities in
+Southern Chile--whose first founders emigrated from Germany after the
+troubles of 1848--did not invite such large political designs, although
+there is reason to think that in the earlier part of the war, when a
+German war fleet still kept the sea, the manifold activities of Germany
+included some notion of obtaining a permanent footing in the Pacific.
+These German-speaking settlements have been carefully cultivated, by the
+same methods as those used in Brazil, to become a Germanising force in
+Chile and a German outpost on the west coast. In 1916 a Chilian-German
+League was established, to include all persons in Chile of German
+origin and language, with the intention that the members should use
+their influence as Chilian citizens, especially at election time, on
+behalf of German interests.
+
+Another influence which Germany strives to turn to account is the recent
+movement represented by the _Union Ibero-Americana_, which seeks to draw
+together Spain and the Spanish-American republics. The German efforts to
+give a Teutonic tinge to the present Spanish movement of national
+revival look also towards Latin America, in the hope that friendship
+with Spain may tell against French and North American influence; and
+attempts are being made to exploit for that purpose the Ibero-American
+celebration which is to be held in Madrid in October, 1918.
+
+Lastly, in estimating political forces which have to be reckoned as
+factors in the conflict, some mention should be made of the very warm
+sentiment towards France which has prevailed for generations among
+educated South Americans--a sentiment which passes the bounds of mere
+private or even semi-official relations. This feeling is not universal,
+and would hardly be admitted in clerical and military circles. But it is
+sufficiently strong and general to be remotely compared to the sentiment
+which a Greek ~apoikia~ usually entertained towards the mother-city.
+French thought permeates the work of Latin-American historians and
+political writers. French example and theory mould the form and the
+action of governments. Paris is felt to be the capital and the centre of
+inspiration for Latin civilisation. The debt of South America to France
+has been generously, and indeed affectionately, avowed by a succession
+of Argentine writers. A recent German semi-official utterance openly
+admits and deplores the historic attachment of South America to France.
+This attitude towards France can hardly fail to have some public weight;
+and there is no doubt that the course pursued by Brazil has been partly
+inspired by love of France.
+
+FOOTNOTES:
+
+[2] For the sake of brevity and clear relation to the present topic,
+this history is not here examined with reference to any theory or
+doctrine of policy. In order to explain the present position, the
+salient facts only are given, but not the comments and explanations of
+statesmen, nor the diplomatic passages leading to these events. One may
+digress for a moment to point out that a sufficient interpretation of
+these events is to be found in the natural expansion of a vigorous
+growing people. In the process of "winning the wilderness and conquering
+the continent" the United States found that a considerable part of the
+field was in nominal possession of those who were doing little to use or
+civilise it. These claims, which obstructed progress, were successively
+disposed of. Nor has it been found possible to limit that advance to
+certain indispensable acquisitions of territory. National security has
+demanded varying degrees of control over neighbouring peoples of
+inferior development. The process finds many historical parallels: and
+it is an intensely practical, not a theoretic, matter.
+
+[3] It may be pointed out that for nearly seventy years the United
+States has acquired no territory from any Latin-American republic,
+except the perpetual lease of the canal zone, which was freely granted
+on most profitable conditions by the Republic of Panama. Cuba and Panama
+owe their separate existence, together with an unexampled prosperity and
+internal tranquillity, to the United States. In Nicaragua and Santo
+Domingo the great material benefits of interposition seem to outweigh
+sentimental objections. The financial obligations of Nicaragua have been
+adjusted through the help of the United States; and it may perhaps be
+felt that improved public solvency, material prosperity and internal
+security, though effected through outside aid, enhance instead of
+diminishing the national dignity.
+
+
+
+
+CHAPTER II
+
+THE GERMAN OUTLOOK ON LATIN AMERICA
+
+
+"South America is the special theatre and object of German commercial
+industry." This emphatic declaration--reiterated in various forms by
+other German authorities--is the theme treated by Professor Gast,
+Director of the German South American Institute at Aix-la-Chapelle, in a
+pamphlet entitled _Deutschland und Sued-Amerika_, which may be regarded
+as a semi-official exposition of German objects and opportunities. The
+pamphlet appeared in the latter part of 1915. The events which have
+since occurred, however damaging they may be to German hopes, do not
+affect the views expressed. Since this advice from a German authority to
+Germans is a frank revelation of German views, it seems worth giving a
+very brief abstract of the main points, which the writer elaborates at
+great length, though he does not enter upon details of business method.
+
+"The German Press," says Professor Gast, "has never published so much
+about Latin America as during this war. This proves the importance of
+German relations there and the need of clear ideas concerning them. An
+economic competition, intense beyond all example, has sprung up
+concerning Latin America. The chief feature is the 'Financial Offensive'
+of the United States. The present grouping of competitors is accidental
+and false. The natural conflict is between the United States on the one
+side, and on the other side all industrial and exporting peoples,
+including Japan. The United States, the most dangerous competitor, is
+handicapped by the higher cost of production in North America and by the
+want of that facility of adaptation to customers' needs in which Germany
+excels. Yet the war has revealed the weakness of German reputation.
+Everywhere the prevailing strain is antipathy to Germany. It is the duty
+of Germans to put aside resentment and to strengthen their economic
+position. For trade with the two Americas is the chief source of
+prosperity for modern German commerce, particularly that of Hamburg. And
+after the war this trans-Oceanic trade will be a matter of yet more
+urgent national importance."
+
+This general survey is followed by an examination of special
+opportunities open to Germans. "Germany has not the many-sided relations
+with Latin America possessed by the Latin peoples of Europe, nor the
+politico-geographical advantages of the United States, nor the strong
+capitalist position of Great Britain. She must make the most of what she
+does possess. Her main asset is the German in South America. Every
+German abroad means the investment of interest-bearing capital for
+German cultural expansion. Two things are required of him, to win esteem
+by good work and to place his personal influence at the disposal of
+German national ends. The compact German communities in Brazil and in
+Southern Chile should be supported and organised from home, but not
+obtrusively, lest local feeling be aroused. They may perhaps serve
+Germany best by a partial mingling with the native population, so as to
+spread German culture and the taste for German goods. But, everywhere,
+all individual Germans are Germanising agents. The German merchant
+particularly is the missionary of cultural and political influence. So
+also the German soldier, particularly the German officers employed as
+instructors in Chile and Argentina. Most South American officers feel a
+professional sympathy for Germany. Hence spring useful personal
+friendships: to foster and enlarge these is an urgent duty. Germans
+exercise other professions which facilitate the patriotic diffusion of
+German culture. Such are physicians, who find peculiar opportunities in
+their intimate relations with families in their homes; the clergy, both
+Protestant and Roman Catholic; teachers, whose proved idealism is an
+admirable equipment for the spread of German culture; scientific men,
+journalists, surveyors, geologists, professors in training colleges. If
+possible they should work in combination, as they do in the German
+Scientific Club of Buenos Aires. Every one of them must use every
+professional opportunity and every item of personal influence and
+private friendship for the advantage of Germany.
+
+"A knowledge of German culture must be spread by a systematic
+educational movement. But this must be done tactfully. The German's
+propensity to foreign studies will aid him. He must equip himself by
+assimilating Latin culture, must use his knowledge of French culture,
+must oppose French influence by encouraging Spanish culture. His object
+is to catch souls; and, next to financial strength, the first necessity
+is tact."
+
+Two points stand out in this very candid statement. First, every German
+abroad is an item in the national balance-sheet; he must earn interest.
+The intimacy between the pastor and his flock, the physician's
+intercourse with his patient, are set down on the credit side of the
+national profit-and-loss account. Secondly, the most profitable method
+is a liberal education. There is something whimsical in the combination
+of inhuman material calculation with humanising influences, and one may
+smile at the heavy solemnity of the suggestion that the German will find
+it pay to acquire tact and to Latinise himself for outside intercourse.
+But the suggestion should not be dismissed as absurd. Whatever can be
+done by effort, study, and will-power the German will do. He is training
+himself to be a more formidable competitor than ever in the economic
+arena.
+
+Indeed, the pamphlet is valuable, not only as a hint for the future, but
+also as an avowal of methods which are already at work. One of these is
+a deliberate system of politic and profitable marriages. German clerks
+receive promotion only on condition that they marry native girls and
+establish homes in the country. This policy has been so steadily pursued
+that everywhere German business men have entered Latin-American families
+and exercise a Teutonising influence. Through marriage also, accompanied
+by skilled and profitable management, Germans acquire control of
+property and of trading concerns. Again, owing to their reputation for
+expert efficiency and scientific competence, Germans fill many posts of
+influence and trust in universities, scientific institutions and
+government departments. Argentina is an example. In the National
+University Germans control the engineering and chemical sections, where
+their pupils are trained to use German apparatus and methods. German
+curators in the Geological Museum receive early information as to any
+discoveries of minerals or oil. Germans employed as experts in the
+public service learn details of any public works proposed by the
+government or the municipalities. Reports on such schemes pass through
+their hands and, since estimates are not carefully checked, they are
+thus able to favour German trade at the expense of the Argentine
+tax-payer.
+
+In every city the German _Verein_ unites the German community, so that
+Germans may avoid competition and may co-operate with one another and
+with Germans in the Fatherland. The bank and the merchant work in close
+combination and have at their disposal all the information gathered by
+German employees in other banks and in business firms. The German has
+been quick to anticipate others in occupying new ground: for example, in
+the remote but vast and productive region of Eastern Bolivia, watered by
+the three great navigable affluents of the Madeira, a region which is
+just beginning to awake to the promise of a great future, the German
+trader hitherto has scarcely had a competitor. Again, the German has won
+predominance in the electrical and chemical industries by applying his
+practical scientific aptitude to the supply of new wants. Lastly, the
+German is distinguished by close attention to detail and adaptation to
+local needs.
+
+Yet Germans note and deplore "a constant strain of antipathy to Germany,
+a wave of anti-German hate." The remedies suggested are: first, a more
+efficient German service of news, and secondly, "a systematic cultural
+activity, conducted with push and comprehensive inspiration."
+
+What is being done in Germany to realise these methods? First may be
+mentioned the various associations for extending German influence abroad
+and binding to the Fatherland all Germans living abroad, whether in
+South America or elsewhere. Such are the Pan-German League, the German
+Navy League, the League for Germanism abroad, the League for German Art
+abroad, the School League which gives support to German schools outside
+Germany, the German rifle club, with its headquarters in Nuremberg, to
+which rifle clubs abroad are affiliated, and, lastly, the Foreign
+Museum, recently founded under the highest official patronage, which
+arranges economic exhibitions in various German cities. Although these
+associations were not founded particularly for Latin-American objects,
+their present efforts are particularly bent in that direction, as the
+Pan-German League lately declared. But, besides these comprehensive
+agencies, Germany possesses three institutions specially devoted to
+Latin-American purposes. One of these existed before the war, namely the
+German South American Institute at Aix-la-Chapelle, to which the
+Imperial and Prussian authorities have entrusted "the cultivation of
+scientific and artistic relations with South and Central America on the
+lines of a general cultural policy." Its objects are to draw together
+German and South American students, to maintain a South American library
+and information bureau, to encourage in Germany the study of South
+American matters by prize essays, travelling scholarships and similar
+methods, and to use every means of making German intellectual work known
+to South Americans. The Institute publishes a Spanish monthly
+illustrated periodical, _El Mensajero de Ultramar_, and also a
+Portuguese version, _O Transatlantico_. These papers are well calculated
+to uphold German culture across the Atlantic: they are admirably got up
+and aim at presenting an attractive picture of German life and
+institutions, dwelling particularly on the steady continuance of German
+industry, artistic production and even sport during the war. The
+Institute also publishes a German periodical, strictly business-like and
+containing only technical illustrations, for the purpose of keeping
+Germans informed on Latin-American affairs.
+
+The Institute at Aix, although its ultimate object is mainly economic,
+leaves business methods and matters of immediate economic concern to
+other agencies. Before the war there flourished already in Germany a
+League for Argentina and one for Brazil. In 1915 these two Associations
+combined in order to form a German Economic League for South and Central
+America. A prospectus was issued and a meeting was held in Berlin under
+the presidency of Herr Dernburg, who spoke of the coming economic
+struggle and pointed out that German trade, except in the electrical
+industry, was not supported by large capital investments such as their
+rivals possessed. The dependence of South America on other industrial
+nations, owing to want of coal and iron, would facilitate German
+investment, to supply this defect. Germans had failed to make friends
+through not understanding the psychology of South Americans. German
+strength and practical energy must avoid arrogant pedagogic ways and
+must make their way through a tactful and sympathetic propaganda.
+
+At this meeting the league was inaugurated with 120 members. Very soon
+it numbered 1000. Among the associations which figure as members are the
+German Industrialist League, the German Mercantile League, the Berlin
+Chamber of Commerce, the South German Export League, the League for
+Germanism abroad, the Society for German Art abroad. The three great
+banks, known in Germany as the three D.'s, are members, so also the
+great Shipping Companies; also newspaper and publishing firms; also many
+of the great industrial syndicates. A notable feature in the work of the
+league is the maintenance of a club in Berlin where business men and
+other travellers from South America are welcomed. A great point is made
+of this work of personal cultivation. The object is to make by
+hospitable attentions a Germanophil convert of every Latin-American
+visitor to Berlin and send him back across the Atlantic a missionary for
+German culture and German business. But the principal aim of the league
+is to unite all Germans who have any business interests in any part of
+Latin America, so as to pool together their knowledge, their resources,
+and their efforts. In this economic war the Germans move, as it were, in
+mass formation. Branches of the league were speedily established in
+every one of the twenty-one American republics, and these branches
+co-operate actively with the parent society at home in the furtherance
+of German influence and economic advantage.
+
+A third institution, the Hamburg Ibero-American League, has been formed
+in the metropolis of German Latin-American trade. Already before the
+war, besides the usual trading organisations of a great port, Hamburg
+possessed a Technical High School which is practically a university of
+trade and industry; a Seminary for Romance languages and culture, which
+maintains a South American library; and a singularly complete bureau of
+information concerning all over-sea countries, which is known as the
+Hamburg Colonial Institute.
+
+But Hamburg still felt a want, which was supplied by the formation of
+the Hamburg Ibero-American League. Its objects are: (1) in Spain and
+Spanish America: to spread a knowledge of Germany's resources and to
+cultivate friendly relations in government departments, semi-official
+institutions and social, literary and scientific circles. To circulate
+the illustrated weekly _El Heraldo de Hamburgo_, also pamphlets in
+Spanish and Portuguese; to station confidential emissaries in
+appropriate posts; to encourage interchange of visits and to inculcate
+the advantages which Germany offers as a training-ground for every
+calling. (2) In Hamburg: to prepare for intercourse after the war by
+arranging lectures and by organising language courses in German, Spanish
+and Portuguese, and particularly to establish a _Centro Ibero-Americano_
+with club, reading room, and information bureau, a house fully equipped
+for the hospitable reception of travellers from the Peninsula and from
+South America. The league is to consist of twenty-two sections, one for
+Spain, one for Portugal, one for each of the twenty Latin-American
+republics, in order that all who have interests in any part of the
+Ibero-American world may support one another.
+
+A fourth association, the Germanic League for South America, has been
+formed more recently for the purpose of uniting together persons of
+German speech and origin in Latin America and preserving their Germanic
+character, particularly by means of German schools. This institution has
+a special significance just at the time when the Brazilian Government
+has determined that all its citizens shall be Brazilians and nothing
+else.
+
+The three leagues which have their headquarters in Berlin, Hamburg and
+Aix-la-Chapelle have been in active movement for some time, and there is
+evidence from South America that they do their work in a thorough and
+effective fashion and have won considerable success, particularly
+through cultivating the friendship of South American visitors to
+Germany.
+
+But in estimating German designs, we must look beyond these German
+leagues, which are merely an incidental part of German economic
+organisation. That subject far transcends the present topic, but
+embraces it so closely that the main outlines may be indicated. Most of
+the German industries are consolidated into cartels or syndicates in
+such a way as to eliminate competition, regulate prices and output,
+distribute risks or losses, facilitate the export of surplus products,
+and apportion business between the members of the cartel. The whole body
+of industrialists is united in league; merchants or exporters are
+similarly united; a small group of great banks, practically constituting
+one power, manages the financial side of the national industry and
+commerce with a singular mixture of daring and judgment, guided by a
+wonderfully complete enquiry system, a veritable international secret
+service; the great shipping companies, which coalesce more and more into
+a single huge national concern, work in close co-operation with
+organised industry and organised trade; railway transport is managed by
+the state so as to dovetail into the same machine: and the whole forms
+altogether a carefully constructed system of co-operation, cohesion and
+united action. That organisation has not fallen into abeyance during the
+present war. On the contrary, month by month it is being perfected,
+rounded off. Lastly, Germany has appointed, as it were, an economic
+headquarters staff, a small group of expert business men who for two
+years past have been devoting themselves to the working out of means for
+transferring Germany from a war basis to a peace basis with the least
+possible disturbance and delay. This higher command has its hand upon
+the levers of the whole machine, which, upon the conclusion of peace, is
+at once to resume with redoubled energy its interrupted task, industrial
+and commercial recovery, and particularly the economic conquest of Latin
+America.
+
+In order that we may know what Germany is doing, these German
+organisations have been noted here. It would be impertinent, in both
+senses of the word, to compare or to criticise British methods. The
+problem of British reorganisation is being studied by experts and worked
+out by those in authority, and it is constantly expounded in official
+publications. But, without attempting to give individual opinions, one
+may quote some of authority.
+
+"Great nations do not imitate." We may learn much in detail from the
+Germans; but Englishmen could not adopt the German system unless by
+first turning themselves into Prussians. Our people would never submit
+to Prussian methods of state control. Moreover all British experience
+shows that in this country such control would be disastrous. Yet
+competent authorities agree that immediate organisation is a necessity.
+It cannot be beyond the wit of Englishmen to devise means whereby
+British individual enterprise, common sense and self-reliance may work
+through methods of systematic organisation, combination, united action.
+From the friends of Britain everywhere comes the same warning. It is
+most appropriate to conclude with one uttered by a South American of
+unimpeachable authority, Don Pedro Cosio, former Uruguayan Finance
+Minister, who recently represented the Republic of Uruguay in this
+country. In a report to his government on the organisation of labour in
+the United Kingdom he writes, "The nation which is the first to organise
+its industry for the commercial campaign will be the one which will
+occupy the forefront in foreign markets."
+
+
+
+
+CHAPTER III
+
+THE ECONOMIC WAR AND ITS PROPAGANDA
+
+
+"Economic War":--This reiterated German phrase is not mere metaphor. The
+Germans pursued in peace the operations of war. To them commerce meant
+not merely the pursuit of trade in peaceful rivalry with others, but a
+sustained effort to defeat and oust rivals and reduce to economic
+subjugation the lands penetrated. By plunging into open war, which was
+meant to continue and to confirm that process, the Germans have risked
+their previous gains. Their own weapons are turned against them. The
+economic character of the actual war and the efficacy of the economic
+weapon in the hands of the Allies become more and more evident. In the
+early months of the war this weapon was not wielded with thorough
+decision, and Germans beyond the Atlantic were able to carry on
+considerable European trade. But today the German merchant is striving
+to defend, against an overwhelming weight of maritime pressure, the
+ground which he had won through a generation of laborious and patient
+effort.
+
+This economic struggle covers all the shores of all the Oceans. Its
+Latin-American phase has a special interest owing to the remarkable
+position attained in those lands by the Germans, the high value which
+they attach to that position, and their special efforts to maintain it
+under present difficulties. The most varied ingenuity is called into
+play to circumvent the barrier which now cuts off those countries from
+Germany. Present risks and losses are viewed as part of the inevitable
+waste of war, as an outlay deliberately incurred in the all-important
+task of holding open the gate through which, upon the conclusion of
+peace, the fruits of German industry are at once to pour in an
+irresistible stream, in exchange for those raw materials which are
+urgently needed to feed the industrial life of Germany after the war.
+This is the constant preoccupation of German business circles--the need
+of raw materials. And this is the reason why Latin America, the great
+source of raw materials, is courted with eager hope and anxious
+apprehension.
+
+It is noticeable that a very large part of the cargoes condemned by the
+British Prize Court, as actually intended for the enemy though consigned
+to other pretended destinations, consists of goods from Latin America.
+For example, in August 1917 the Court condemned quantities of coffee,
+seized on a score of neutral steamers and ostensibly consigned to
+Scandinavian and Dutch merchants, but in fact shipped by a German firm
+at Santos for the parent house in Hamburg. Two months later, it was
+stated in court that nearly L400,000 worth of wool, shipped from Buenos
+Aires to the Swedish Army Administration at Gothenburg, had been seized
+by the British as being in fact destined for Leipzig. At the same time
+the Court condemned a number of manufactured rubber articles which had
+been found concealed in a passenger's clothing. On a later occasion,
+coffee and cocoa valued at nearly L200,000 were condemned, being part
+cargo of a Swedish ship bound from California to Gothenburg. They were
+consigned by a new and insignificant firm in San Francisco to various
+persons in Scandinavia, but were in fact on their way from Guatemala to
+Hamburg through Sweden.
+
+The elaborate webs spun by German traders and revealed by intercepted
+correspondence were exposed in the Prize Court. Their methods were to
+find persons in neutral countries as nominal consignees, to act as
+intermediaries for getting the goods to Germany; to set up bogus
+companies for the same purpose; to use false names, or names of persons
+having no genuine interest in the consignment, and to manufacture false
+documents in order to give the appearance of neutral business. This was
+done to evade capture by deceiving the belligerent searchers. In some
+instances these methods succeeded. Quantities of coffee, consigned to
+Scandinavia, managed to elude the allied warships and reach Hamburg.
+
+These are cases of import into Germany. The reverse process, export from
+Germany through neutrals, follows similar lines. German goods, falsely
+labelled and described as Swiss or Dutch or Scandinavian manufactures,
+have found their way across the Atlantic in neutral ships.
+
+The Post Office has also served as a channel of secret trade. Pictures
+in the Press have exhibited the odd ingenuity of these devices: how
+coffee from Brazil to Germany was found concealed in rolls of
+newspapers, and how thin slabs of rubber were sent by post as
+photographs, also how quantities of jewellery have been despatched from
+Germany for South America in letters and in bundles of samples or
+journals. Goods so sent from Germany through the Post Office are mostly
+such as combine small bulk with high value--especially drugs and
+jewellery.
+
+These partial examples, although each instance may seem small enough,
+indicate collectively a good deal of enemy trade which has found devious
+routes under stress of war. These manoeuvres may seem at first sight
+merely trivial curiosities or at all events to have no more than
+ephemeral importance, since they were improvised to overcome temporary
+obstacles. But, apart from their intrinsic interest as episodes in one
+phase of the war and as evidence of the efficacy of Sea Power, these
+devices merit practical attention in view of proposals to fasten
+economic fetters upon Germany by the terms of peace, and in view of the
+odium which may tell against German commerce for years to come. German
+business men are preparing to meet these difficulties by continuing the
+method of exporting through neutral agents, and are proposing in some
+cases to transport to a neutral country the work of completing
+manufacture, in order that goods so produced may appear to be
+indisputably of non-German origin; and the Foreign Trade Department at
+Berlin has advised German merchants to employ, for some years after the
+war, travellers and agents who can pass as French or English. It would
+be unwise to underrate any instance of German inventive persistency.
+
+Before the United States came into the war, that country was the channel
+of much German trade with Latin America. That road is now closed. The
+United States Government has gone further. It refuses coal in North
+American ports to ships proceeding from South America to neutral
+countries in Europe, unless the innocence of the cargo can be
+conclusively proved. This regulation shows that the United States
+authorities have knowledge that the ultimate destination of much South
+American cargo, particularly from the Argentine Republic, has been
+Germany. The blockade becomes more stringent through the co-operation of
+the United States and of Brazil, and through the action of the statutory
+list of "persons and firms with whom persons and firms in the United
+Kingdom are prohibited from trading." British commerce is a big and
+living thing, and the prohibition hits very hard any firm placed on this
+Black List. One finds here not only Teutonic names, but also
+innocent-sounding Latin names: for if a Latin-American is found to be
+acting as agent or cloak for a German trader, he finds himself pilloried
+on the Black List beside the German. There are obvious ways of evasion.
+The name of a clerk or door-keeper or a lady type-writer may appear as
+consignee. A varied ingenuity has to be met by constant watchfulness,
+and the list is regularly altered and kept up to date. The Black List
+has been much criticised for omissions, which are sometimes due to
+motives of expediency. But the bitter complaints about its injustice are
+unsolicited testimony to its efficacy. A striking example of its working
+was manifested in September 1917. After the outbreak of war, such of the
+Chilian nitrate works as were owned by Germans were unable to sell their
+nitrate or even to obtain jute bags, the supply of which is in British
+control. The unsold stocks went on accumulating, until one by one the
+German nitrate works were compelled to close down. Long negotiations
+between Santiago and Berlin found at last a remedy for this waste. It
+was agreed that the large deposits of Chilian gold in Germany should be
+set against the German-owned nitrate in Chile. The Chilian Government
+bought the nitrate, and paid the German owners by drafts on Berlin,
+which were met out of the Chilian money deposits in Germany. Thus
+Germany received Chilian gold in exchange for the inaccessible nitrate,
+while the Chilian Government received nitrate in exchange for its
+inaccessible gold. Chile then sold the nitrate for American gold to the
+largest manufacturer of explosives in the United States. Thus, one
+result of the blockade and the statutory list is that this German
+nitrate goes to make munitions, to be hurled at the Germans on the
+French front from American guns. The German Government, by sanctioning
+this sale of explosive material to its enemies, gave evidence of its
+earnest desire to stand well with Chile. On the other hand, Germany was
+impelled to this agreement in order to obviate grave financial loss to
+Germans and especially to save a big Hamburg firm from disaster.
+
+The active entry of Brazil into the war has in great part superseded the
+action of the statutory list in that country: for Brazil has taken
+decisive measures towards Germans within her borders. All enemy
+enterprises are in the hands of government receivers. All contracts for
+purchase of coffee or other Brazilian products by Germans are null and
+void; and in cases where payments had been made by the German
+purchasers, all such payments must be handed over to the official
+receivers. The United States also publishes a Black List of firms with
+whom her citizens are forbidden to deal. Evasion of allied watchfulness
+becomes more and more difficult: yet ingenious, and sometimes successful
+efforts are made to find loopholes in the wall of the blockade.
+
+There are now in Buenos Aires nearly 150 Turkish firms--Levantines of
+every denomination, Mohammedan, Christian, Jewish. Some of these are
+long-established and well-reputed houses. But most of them have sprung
+up during the war. Some of them, starting with exiguous capital, have
+made large fortunes in a year or two of trade. This has been done by
+supplying to German black-listed firms goods imported direct from
+Manchester and Bradford. Through the close co-operation of the German
+bank with German trade, these Syrians and Armenians are enabled, by the
+Germans standing behind them, to pay cash against documents in place of
+the usual sixty to ninety days' credit, and thus have a great advantage
+over the British or allied trader. The British authorities now permit
+export only to certain registered Turkish firms. The restriction does
+something to limit the abuse of this kind of trading.
+
+Besides these ingenious efforts to keep open communication with Europe,
+there is another side of the commercial war. In the neutral states of
+Latin America the German business man is as ubiquitous and energetic as
+ever, nay more so as he has greater difficulties to contend with. So far
+as he can, he sells from accumulated stocks of German goods, for the
+German importing houses before the war had gathered great stocks,
+especially in Chile. Where this resource fails, he repairs his stock by
+buying anywhere. Up to April 1917 he bought largely in New York. Now he
+buys where he can and what he can--American goods, French goods, British
+goods--anything to hold the market until the ocean shall be free once
+more to German keels carrying German goods.
+
+From the Argentine Republic 6000 young Englishmen came home to serve
+Britain on the fields of France. The young German would have found
+difficulty in getting home, even had he wished to do so; so for the most
+part he stayed in the River Plate. Other Germans have been released from
+military service and sent out as commercial travellers; for the German
+Government regards this too as National War Service. Thus today there
+are three German commercial men in the River Plate to one Englishman.
+The resources and confidence of the German traders are surprising. They
+have bought great quantities of wool in the River Plate--not so much
+indeed as is generally supposed; for German emissaries, in order to
+force up the price of wool to the Allies, have methodically made
+specious but fictitious offers of high prices to sheep-farmers all over
+the Argentine Republic. Yet, even so, German traders hold large
+quantities both of wool and of grain. These have been purchased partly
+for selling at enhanced prices on the spot, but principally with a view
+to after-war trade and the supply of raw materials to Germany. These
+purchases are proof of firm belief in the future. Moreover, both in
+Chile and in Argentina the interned German ships await their after-war
+cargoes for Europe. And when the Chilian or Argentine asks whether the
+German will be free to use these ships when peace comes, the Englishman
+cannot reply. The ships are there, proof of Germany's future power to
+trade.
+
+And the Germans are active not only in trade. They have learnt from
+British example that the road to business in Latin America is the
+investment of capital. And, strange as it may seem, the German has
+peculiar opportunities of investment at the present time. Such limited
+trade as can be carried on yields great profits. There is difficulty
+about remitting funds to Germany; and in any case "victory war loans"
+and other investments in the Fatherland may seem less attractive than
+investments in those Latin-American lands which look forward to rapidly
+expanding prosperity after the war. Accordingly, the German merchant is
+not only buying raw materials; he is also taking a share in the movement
+of home manufactures which now offers peculiar opportunities to foreign
+enterprise. Moreover, German firms in Buenos Aires have invested largely
+in short loans to the Argentine Government. Besides these private
+investments, which, like all German activities, have their official
+side, loans have been repeatedly pressed on the Argentine Government,
+ostensibly by neutral financiers (first in the United States and
+afterwards in Spain) but in fact by Germany, evidently for immediate
+political as well as for ulterior economic objects. These offers have
+been declined. A German loan openly offered to Uruguay has also been
+refused.
+
+Obviously, the whole story of German war-efforts in Latin America cannot
+yet be told. Enough has been said to indicate the character and the
+intensity of those efforts. For this far western front Germany has
+mobilised a business army, specially trained for the nature of the
+country and for the kind of operations wherein it is to be engaged.
+These efforts and aspirations are best illustrated by a recent utterance
+from the Hamburg branch of the League for Germanism abroad:--"We should
+like to insist that South America, the main field of our activity for
+many years past, constitutes a great sphere. Wide areas, with great
+possibilities of development, but little cultivated hitherto, are
+waiting to be opened up. It must be our business to employ here all our
+strength in order to retain and to make useful to ourselves these
+countries with their markets and raw materials. What we have to do is to
+_arm for the Peace_ and to collect money, in order to be able
+immediately to act with energy--with our whole strength and with
+adequate resources."
+
+       *       *       *       *       *
+
+In this "arming for the Peace" there is one weapon which demands special
+mention, namely the influencing of opinion by printed propaganda.
+
+The German mobilisation of the Press is a vast business controlled by
+the State. Upon the outbreak of war this organisation undertook the
+special work of war propaganda through two newly formed departments: (1)
+Press Office for influencing neutrals, (2) News Service for Spanish- and
+Portuguese-speaking countries. This institution of a special
+Ibero-American service proves the prominence given to the work in the
+Spanish- and Portuguese-speaking lands. The last words obviously include
+the Peninsula as well as Latin America. Nor can the propaganda carried
+on in Spain be dissociated from that in Spanish America. "Spain is the
+way to South America," writes a Spaniard discussing this very point. The
+popular illustrated Spanish prints _A.B.C._ and _Blanco y Negro_, which
+carry on a vehement Germanophil propaganda, are carefully perused, as
+coming from "home," by Spanish emigrants throughout Latin America, who
+thus become, half unwittingly, disseminators of German views and of
+belief in German victory.
+
+For the first object of this propaganda is to represent Germany as
+invincible in war. This military propaganda is an essential part of
+economic efforts. The Germans hold up a picture of German sagacity,
+system, thoroughness, efficiency. They desire to impress as well as to
+persuade. They know the effect produced by their victory in 1870. Credit
+and confidence are the greatest of commercial assets; and in this case
+economic credit is to rest upon belief in military strength.
+
+In South America, as in Spain, the method is to capture the press, and
+so disseminate German war-news, pro-German articles, photographs and
+cartoons. But it was not enough to control or inspire existing
+newspapers. In many capitals the Germans started new journals, printed
+in the vernacular. Naturally, the chief effort was made in Buenos Aires.
+Early in the war, a German organ, _La Union_, was founded, in order
+that the Porteno, as he walked the street or travelled by train or
+tramway, might have the German case daily and forcibly presented to him.
+Throughout Latin America, a dozen or more of newspapers have been thus
+founded for propaganda purposes, some of them illustrated by effective
+cartoons. The strangest examples of this journalistic campaign are two
+Turkish newspapers, _La Bandera Otomana_ of Buenos Aires and _O Otomano_
+of Sao Paolo, which urge the cause of the Central Powers among Orientals
+in those countries. Besides these purely German efforts, a host of
+newspapers, many of them the local journals of country towns, serve the
+German cause throughout Latin America, the newspaper offices sometimes
+acting as distributing agencies for periodicals printed in Germany in
+the Spanish tongue.
+
+For, besides German and Germanophil periodicals published in America,
+others are produced in Germany for circulation in those countries. The
+number and the excellent quality of these Spanish productions of the
+German printing-press are remarkable. _La Revista de la Exportacion
+Alemana_ is a most effective organ for German business, exhibiting side
+by side, in pictures and letter-press, triumphs in the field and
+triumphs of industry. The monthly _Mensajero de Ultramar_ and the weekly
+_Heraldo de Hamburgo_ have been already mentioned. Hamburg also produces
+the well-known weekly picture-paper, _Welt in Bild_, with letter-press
+in twelve languages. These well-written and well-printed newspapers are
+widely circulated in Latin America in order to uphold the German cause.
+
+In addition to these permanent publications, special war periodicals are
+issued, every one of them a German trumpet. Not least of these is the
+comic paper _La Guasa Internacional_, which holds up the Allies to
+ridicule and abhorrence in cartoons, squibs and sketches. A diary of the
+war with a review of political and military movements is given in the
+illustrated monthly _Cronica de la Guerra_. Another chronicle is _La
+Guerra Europea Mirada por un Sud-Americano_, a piece of war propaganda
+written by a Latin-American soldier, Senor Guerrero, who was, until
+recently, Peruvian military attache at Berlin. But perhaps the most
+effective of these war periodicals is _La Gran Guerra en cuadros_, which
+presents, in a series of pictures, the war as meant to be seen by
+neutral eyes. All these periodicals attribute economic blunders and
+financial errors or weakness to the Allies, sometimes making adroit use
+of British or French self-criticisms: on the other hand, they magnify
+German economic strength and organisation. This main object appears in
+an article on "After-war commercial relations between Spanish America
+and Europe" published in _El Mensajero de Ultramar_, which argues that
+Germany will suffer least of all the belligerents from the effects of
+the war; and that afterwards she will be the best purchaser and also the
+most capable provider for Latin America. Such is the reiterated refrain
+of a host of periodical publications.
+
+In addition to periodicals, Germany pours over the Spanish-and
+Portuguese-speaking world a constant inundation of fly-leaves,
+photographs, pamphlets, books and miscellaneous war literature,
+preaching German strength, efficiency, humanity, and even the democratic
+character of German institutions.
+
+What is the result? Has German propaganda succeeded in moulding
+Latin-American opinion concerning the war? Opinion in those countries
+has been moved by an argument more potent than all the German
+propaganda, and that is the German submarine. The German offers to South
+America with one hand persuasive self-eulogies, while with the other
+hand he sinks her unarmed trading ships and drowns her sailors.
+Unrestricted submarine warfare and the barring of zones to navigation
+have drawn Brazil, by successive steps, into active belligerency, and
+have done much to bring about rupture of relations and declarations of
+war by other Latin-American republics. Yet it would be a mistake to
+conclude that German propaganda has entirely failed. The Germans
+certainly think it worth while to continue it. The pavements of Buenos
+Aires are sometimes ankle-deep with pro-neutrality and anti-ally
+leaflets. But it is principally through the persistent and reiterated
+voice of the newspaper press, aided by the unremitting personal efforts
+of every German and every friend of Germany, that she wages this
+secondary warfare, this strategy of moral influence, which mobilises
+public opinion, diffuses impressions, colours events, creates an
+atmosphere.
+
+A circular was lately issued to the German League in Chile urging that,
+if propaganda could delay the severance of diplomatic relations between
+Chile and Germany, even for a few weeks, it would help Germany and her
+allies to an extent of several millions, and cause damage to her enemies
+to the same amount. As the situation becomes more critical for Germany,
+her propaganda redoubles in intensity. "Public opinion," says Napoleon,
+"is a force invisible, mysterious, irresistible." The Germans recognise
+that force, and have done all that was in their power to sway it to
+their side. German persuasiveness has not wholly failed. But in this war
+of words one decisive word has yet to be spoken, and that word is
+Victory.
+
+Yet military victory is not the final word in the economic struggle nor
+in the propaganda used in its support. The German South American
+Institute urgently emphasises the need of a more thorough and more
+stable system of German news supply: and official steps are now being
+taken in Germany to consolidate and extend such a system, in order to
+provide a permanent support of German influence in the future. The
+present aim of her propaganda is not only to exhibit victories, but to
+prepare for possible defeat, while representing Germany as morally
+invincible and as able, in any event, not only to hold her own, but to
+extend and strengthen her position.
+
+
+
+
+CHAPTER IV
+
+THE RECOGNITION OF LATIN AMERICA
+
+
+It has been necessary to speak at some length of the direction taken by
+German activities with regard to Latin America. In order to preserve due
+perspective, something should be said about activities on the part of
+others. For the German has no monopoly of intelligence and energy in
+these matters. Indeed, the methods of the various German Leagues for
+Latin America mentioned in the second chapter were prompted, in part at
+least, by observation of what was being done elsewhere, particularly in
+France and the United States: for all these matters are carefully
+watched in Germany, and are described in minute detail in the
+publications of those leagues.
+
+An American historian remarks that Europe and the United States have
+lately re-discovered Latin America; and a German observer describes
+South America as the Fair Helen of the business world--her charms
+admired and her favours sought by all industrial nations. These epigrams
+point to a comparatively recent movement, which might be described as
+the Recognition of Latin America. This is not a sudden new departure,
+for relations between those countries and Europe have been continuous.
+But, in the past, there has been much indifference and ignorance
+regarding these matters, except among those directly concerned in them.
+In recent years a fresh spirit has arisen, an enlivened interest and a
+desire for better knowledge and more cordial intercourse. The movement
+is natural and spontaneous rather than official. It owes little--at all
+events in Europe--to governments and chanceries, although these
+recognise its value and give it their countenance.
+
+It was pointed out above that French thought and French example have
+always exercised a profound influence on the Latin-American republics.
+Until recently, this influence made itself felt without much conscious
+observation or deliberate activity on the part of Frenchmen. Indeed,
+there was sometimes a disposition, which was not unknown in England
+also, to view the Latin-American in a satirical light. A changed
+attitude in France--a desire for cordial and equal intercourse--took
+definite shape in the formation of the Comite France-Amerique in 1906
+under the presidency of M. Gabriel Hanotaux. The objects of this society
+are to develop economic, intellectual and artistic relations between
+France and the nations of the New World, to attract students and
+travellers to France from the two Americas and welcome them cordially,
+to encourage every means of making France and America known to one
+another. The society soon numbered over 1000 members, and proceeded to
+found branches in Latin-American capitals, as well as in the United
+States and Canada. It publishes a monthly review entitled
+_France-Amerique_, dealing with every branch of life in the two
+Americas, and has formed a sub-section known as Ligue francaise de
+propagande, to spread in America a knowledge of French education and
+art, as well as French industrial products. The society has published a
+number of books concerning the history and present conditions of
+American countries.
+
+The same year, 1906, saw the foundation of the Groupement des
+Universites et grandes Ecoles de France pour les relations avec
+l'Amerique Latine. This academic association, though it does not ignore
+the business side of foreign relations, is naturally more concerned with
+educational and intellectual matters. Its activities appear in the
+visits of French professors and lecturers to Latin-American capitals,
+the reception of Latin-American students in France, the study of
+Spanish-American history, literature and archaeology in French
+Universities, and in one apparently trivial but very practical
+detail--the reduction by one half of French Steamship Companies' fares
+to Latin-American students visiting France.
+
+The economic side of this French movement appears in the institution of
+a "Latin-American week," a kind of festival for propaganda and
+intercourse, to be celebrated annually in some great business centre of
+France. The inaugural seven days' meeting was held at Lyons in December
+1916. Sixty Latin-American delegates were present, and were met by 200
+French delegates from Paris, among them leading men representing every
+side of French life. The conference discussed every aspect of the
+relations between France and Latin America, and the means of extending
+and improving those relations.
+
+The cordiality of intercourse finds its most pleasant manifestation in
+the frequent visits to South America of distinguished Frenchmen--among
+them have been Anatole France and Clemenceau--who carry messages of
+sympathy across the Atlantic to crowded and enthusiastic gatherings in
+Latin-American cities.
+
+In the United States this double movement, intellectual and economic, is
+still more marked. Latin-American history and economics are regularly
+taught in the universities, and prizes are provided for essays on
+historical works on those lands. Harvard University has a special
+endowment for Latin-American studies, an Instructor in Latin-American
+history and a South American Library of 10,000 volumes; and the
+University, in order to encourage the entry of Latin-American students,
+dispenses with the use of the English language in the Entrance
+Examination in certain cases. The Jesuit traveller, Father Zahm, better
+known by his pen-name of Mozans, has presented his South American
+library to Notre Dame University, Indiana. The Rector of the Leland
+Stanford Junior University places at the disposal of the University his
+library of 7000 volumes on Brazil. Scholarships are granted in the
+Universities to Latin-American women students. In the year 1913,
+Latin-American students in American universities numbered 813. American
+scientific missions are at work in Latin America, as well as missions of
+teachers to study educational methods in those lands and to invite
+return visits to the United States. One hears, moreover, of a
+Spanish-American Athenaeum at Washington, 2000 institutions teaching the
+Spanish language, 1700 clubs formed for the study of Latin America, new
+magazines dealing exclusively with those regions, Argentine men of
+letters received with an honoured public welcome, an Inter-American
+Round Table, founded by representative ladies of New York, who propose
+to hold annual meetings of women, to take place successively in the
+capitals of the American Republics.
+
+This educational and social movement accompanies and supports a great
+business effort directed towards Latin America. The latter has an
+obvious bearing on the subject of Pan-Americanism, which is treated in a
+later chapter: but it is convenient to indicate the facts here, as
+forming part of a general movement of approach by other peoples towards
+Latin America. The American business effort assumed concrete form at the
+beginning of the war, when the United States Government invited the
+Finance Ministers and leading bankers of all the American Republics to a
+Financial conference at Washington. All but Mexico and Haiti accepted.
+The conference met in March 1915. A committee was appointed for each
+republic, and their reports were submitted to a joint committee. The
+decisions so reached were unanimously accepted by the whole conference.
+They recommended a standard gold coin for the whole of America, also
+unification of regulations concerning classification of merchandise,
+customs, consular certificates and invoices, trade marks and kindred
+matters. Questions of banking facilities, transport and credit were also
+discussed.
+
+Furthermore, it was decided to institute an International High
+Commission, which should continue permanently the work of the
+conference, sitting in rotation in the capitals of the several
+republics. This commission met first in Buenos Aires in April 1916, and
+decided to create a Central Executive Council to consist of three
+members, namely the chairman, vice-chairman and secretary of the section
+representing whatever country should be at the time the headquarters of
+the High Commission. On the motion of Argentina it was unanimously
+agreed that the headquarters for the first year should be Washington.
+Thus the first Central Executive Council consisted of three North
+Americans, the three heads of the United States section of the
+International High Commission.
+
+During the last three years, North American capital has been poured into
+Latin America, notably into Brazil, although perhaps the most striking
+instance is the acquisition of three huge and profitable mining
+properties in Chile, producing copper and iron. American commissioners
+are studying the field; direct steamship communication between the two
+continents has been extended; and American banks have been opened in
+many South American cities. It is remarkable how large a space is given
+day by day to Latin America in the Daily Commerce Report and List of
+Trade Opportunities published by the United States Bureau of Foreign and
+Domestic Commerce. Meanwhile the Pan-American Union, housed in a
+magnificent palace at Washington, labours unceasingly to draw closer the
+political, economic, social, and intellectual relations.
+
+But in other directions, indeed in all directions, Latin-American
+economic and international relations are opening out and finding new
+roads. Canada has earned a high reputation by her industrial
+enterprises, and Canadian banks are being established in South American
+capitals. The Dutch too are opening banks and preparing to extend their
+trade. Japan, also, is drawing closer to this new Europe of the western
+hemisphere. Japanese immigration is increasing, not only to the
+republics of the Pacific coast, but also to Southern Brazil. The
+Japanese steamship service to the west coast has been extended, and
+lines of Japanese ships are now running, also, to Buenos Aires and Rio.
+Industrial Japan aims at substituting for German trade the production of
+goods formerly imported from Germany, and Japanese pioneers are
+travelling in South America to study and prepare the ground. Japanese
+relations with Chile are particularly close and friendly. Chile can
+supply iron and copper, which Japan wants; and in return Chile is
+prepared to take Japanese cotton and silk. Kaolin or china clay was
+lately discovered in Chile: a specimen was sent to Japan for trial; and,
+as a result, a china factory has been started in Chile, the skilled
+labour being provided by Japanese artisans. Truly, the whole world is
+drawing nearer to South America.
+
+What of the British position? The British "re-discovered" Latin America
+more than a century ago. England, as well as France, was the school of
+Miranda and Bolivar. England provided the sinews of war for the
+emancipation of these lands, and the British legion which served under
+Bolivar was saluted by him, on the battle-field, as _Salvadores de mi
+patria_. South America honours the name of Cochrane among the heroic
+figures which stand upon the threshold of independence: nor has she
+forgotten how Canning's generous statesmanship helped her to secure the
+fruits of victory. One may read, in great part, the history of the
+struggle for independence in Memoirs written by Englishmen who took part
+in it. And in succeeding years the British held in those countries a
+peculiar position of gratitude and respect. The first Argentine foreign
+treaty was with Great Britain. Uruguay owes her independence, in part at
+least, to the intervention of British diplomacy, which was held in equal
+honour at Buenos Aires and in Rio. The founder of the Pacific Steam
+Navigation Company was an American, who, failing to find support in his
+own country, went to England, and there launched his great scheme of
+maritime trade on the Pacific coast. The same American, William
+Wheelwright, was the founder of the Argentine railway system, through
+English capital and enterprise. Over 1000 millions sterling of British
+capital are invested in Latin America in the form of government loans
+and corporate enterprises whose capital can be counted, without
+reckoning private investments, such as ownership of land. Total British
+investments in the Argentine alone exceed 500 millions sterling. The
+British created the Chilian nitrate industry, in which Chilian and
+British ownership are now about equal. Our fathers and grandfathers
+dared much, risked much, lost much and gained much in Latin America, and
+have left us an unrivalled reputation for good work and steady
+integrity. _Palabra de Ingles_, "the word of an Englishman," is still a
+proverb throughout those countries.
+
+Yet there is truth in the remark of a German author that the British
+have made no "cultural efforts" in Latin America. They are viewed with
+respect rather than with an intimate cordiality which they have not
+sought. It has been said that an Argentine takes off his hat to an
+Englishman, but tucks his arm in that of a Frenchman. This absence of
+deliberate effort does not mean the absence of moral influence. An
+official of the Pan-American Union remarked to the present writer that
+the English had done a "wonderful work" in Argentina by introducing and
+spreading the game of football, which had taught lessons of fair play,
+voluntary disciplined combination and good humour in defeat. The Boy
+Scout movement has taken root throughout Latin America, holding up
+everywhere in the spirit of its work and in local Scout papers a high
+standard of honour, truthfulness and conduct. These are some examples of
+a widespread influence exerted by certain sides of English life and
+character. Yet a certain atmosphere of aloofness still envelopes the
+British in Latin America, and this attitude is reflected in England. The
+languages and the history of those lands have not received their due in
+our schools and colleges. It has been comparatively rare to find in this
+country a keen and well-informed interest in matters wherein our own
+people have had a far greater share than our neighbours on the European
+continent or in the United States. What is wanting is a breath of
+enthusiasm for a most picturesque past, a present situation of absorbing
+interest, and the prospect of a future which promises boundless
+possibilities.
+
+Yet the movement of recognition is making way among us. The number of
+descriptive books published in recent years concerning those countries
+points to a reviving interest. Our schools are providing Spanish
+classes: our universities are founding professorships or lectureships in
+the Spanish and Portuguese languages, and the study of Latin-American
+history is finding admission to its due academic place. We are beginning
+to perceive that the life of those countries touches us closely, and
+that some knowledge and thoughtful interest concerning them should be
+part of the mental equipment of an educated Englishman. Moreover, the
+recent establishment of an Anglo-Spanish Society and also of an
+Anglo-Portuguese and Brazilian Society indicates a growing disposition
+for sympathetic and reasonable intercourse with the peoples of the
+Ibero-American lands.
+
+It would be out of place here to talk of this or that defect in British
+business methods or to suggest possible amendments. Such matters may be
+left to business men. Mr Herbert Gibson, in the fascinating address
+which he lately gave in King's College, London, sets the matter on a
+higher plane. "I do not think," he says, "it is so much a question of
+this or that system of weights and measures, or of the insularity of our
+classes of goods, as a question of a more intimate and sympathetic
+understanding between the peoples themselves. Trade can no doubt go on
+without such an understanding; but, where it exists, commercial as well
+as political, social and intellectual relations are strengthened. It
+seems to me that where our relations with South America have weakened or
+at least where they have not progressively increased, is in that
+man-to-man understanding and sympathy that opened the doors of all South
+America to our grandfathers."
+
+
+
+
+CHAPTER V
+
+EFFECTS OF THE WAR ON THE REPUBLICS
+
+
+_El pais de manana_, "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 Jaguarao; and
+also arrange a seasonal migration of labourers, who work from April to
+September on the Sao Paolo 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 Bolivar 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 Martin and of the
+Venezuelan Bolivar 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 America 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, _America 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
+Panama 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 Panama, and that geographical frontier has
+been occupied--merely as an outpost so far---by the United States. The
+Republics of Nicaragua and of Panama 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, Panama
+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?
+
+
+
+
+CHAPTER VI
+
+PAN-AMERICANISM
+
+
+The relations of Latin America with the United States are chiefly
+connected with those tendencies of United States policy which are
+associated with the name of Monroe. A survey of the Monroe Doctrine
+would here be out of place: but the main points bearing on the present
+situation may be indicated. The injunction imposed in 1823 by President
+Monroe upon European interference in America was intended to meet
+certain European designs which at that time seemed to endanger the
+"peace and safety" of the United States. But Monroe's declaration,
+although its immediate purpose was self-defence, involved a permanent
+protest against any European aggression in Latin America, and thus set
+up the United States as self-constituted champion of those countries.
+Such a position involves a certain superiority of attitude and cannot be
+very clearly distinguished from protection; and protection is apt to
+merge by gradual steps, often only half perceived and not deliberately
+intended, into Protectorate. Thus, the development of the Monroe
+Doctrine has followed two parallel lines of policy, protection against
+Europe and national self-assertion. This latter more positive aspect has
+impressed itself upon the public mind. The advances in the Caribbean
+region, which have been mentioned in the first chapter, were undertaken
+not in order to satisfy any doctrine or theory, but to satisfy the
+irresistible needs of a vigorous growing Power. But since, for a
+generation past, it has been expected of American statesmen that they
+should justify their orthodoxy as adherents of this doctrine, these
+steps towards protectorate or dominion have been explained in a series
+of public pronouncements as developments or examples of the doctrine.
+Naturally, therefore, the term "Monroe Doctrine" is popularly understood
+as connoting an imperial policy, a movement towards supremacy or
+hegemony.
+
+In any case, the obvious comment on the Monroe Doctrine is that it has
+indeed protected the American republics from European aggression, but
+has not protected them from American aggression. It has not protected
+Peru from Chile nor Mexico and Colombia from the United States. Again,
+it is a uni-lateral arrangement announced by one Power alone, on the
+assumption that this action would be taken for granted by the other
+American republics. This attitude does not entirely commend itself to
+those states, especially as they grow stronger and more conscious of
+their strength. American business men plainly assert that the Monroe
+Doctrine is bad for business[4], and warn their countrymen against
+straining after a fictitious inter-American sentiment--an attitude which
+"is often a cause for resentment, the more felt because seldom expressed
+by the courteous Latin[5]." An article in the Pan-American Bulletin for
+December 1917 deserves particular attention. It cleaves through the
+difficulty by declaring, on the authority of Mr Root, that the Monroe
+Doctrine today means no more than what President Monroe meant a century
+ago: "The Monroe Doctrine is an assertion of the right of self-defence,
+that and nothing more. France and Britain are in the field to protect
+their Monroe Doctrine, the sovereignty and independence of Belgium ...
+there is nothing here ... in any way derogatory to the full sovereignty
+and independence of even the smallest of the Latin-American countries.
+It is true that the first proclamation of the Monroe Doctrine carried
+with it an implied offer of aid to the newly liberated Spanish-American
+colonies against proposed aggressions by the Holy Alliance.
+Self-protection was the motive ... it counts for nothing against a set
+purpose to defend one's own house that in so doing one performs an act
+by which one's neighbour is likewise defended." The article concludes by
+declaring that the Monroe Doctrine still prevails, strictly limited to
+its original sense, and that Pan-Americanism is an entirely distinct
+policy, which must not be confused with it.
+
+This re-statement of the Monroe Doctrine in its original terms, this
+declaration that United States policy is just like that of other
+nations, was probably prompted by the sense that the later developments
+of the Monroe Doctrine hindered the economic propaganda which is the
+main business of the Pan-American Union. But it has been further argued
+that the great war has exposed the weakness of Monroism, since, in the
+event of a German victory, nothing but superior force could prevent
+German invasion and occupation in Canada or in any trans-Atlantic
+country which might be at war with Germany. The arming of the United
+States has in some degree answered this objection, which is perhaps as
+contingent and theoretical as the doctrine itself. But the war has
+certainly emphasised the fact that emergencies must be met and settled
+as they arise, and that, since they cannot be foreseen, they cannot be
+covered by pre-conceived theories. At any rate a sentiment has for some
+time been gaining force that the inter-American policy of the United
+States calls for some kind of revision or re-statement; and the solution
+is sought in "Pan-Americanism."
+
+In seeking a definition of that phrase, European analogies will scarcely
+help us. The word "Pan-Germanism" usually implies some common action or
+interest among all those who speak the German language, and suggests
+some kind of racial bond or sense of kindred. The word "Pan-Slavism"
+appears to mean common action or interest among all who speak the Slav
+tongues, and similarly suggests some ethnological bond of kinship.
+Obviously Pan-Americanism must mean something quite different, for the
+American differs from his nearest southern neighbour, the Mexican, more
+widely than the Norwegian differs from the Greek. Moreover,
+"Pan-American" is a term of recent origin and still somewhat fluid in
+its application. It has sometimes been used merely as the equivalent of
+"European" or "Asiatic"; for the word "American" commonly bears a
+national sense and there is no convenient and accepted term covering the
+two Americas. For example, Mr Taft in his Presidential message of 1909
+spoke of "our Pan-American policy" much as a British Prime Minister
+might speak of "our European policy."
+
+Thus, the obvious application of the term is geographical. Yet Americans
+of authority are fully aware of the need of reservation in this
+geographical application. In 1909, the Director of the Pan-American
+Union pointed out, with some mortification, that on the occasion of the
+Pan-American Congress at Buenos Aires, most of the delegates from the
+north found that the easiest route from the chief city of North America
+to the chief city of South America lay through Europe. And an eminent
+American economist[6] has lately uttered a warning against geographical
+misapprehensions, explaining that, whereas the Panama Canal makes the
+west coast of South America an extension of the east coast of the United
+States, nevertheless the bulk of the South American population lives
+upon the Atlantic coast and prefers its traditional, customary and
+natural intercourse with Europe.
+
+But in considering the meaning of an incipient and growing force, it
+would be a mistake to dwell on possible limitations and difficulties;
+and it would be pedantic and unpractical to demand precise consistency
+or exact definition. We are rather concerned with aspirations,
+tendencies and formative ideas. Indeed, it might fairly be argued that
+these limitations, which are fully realised and avowed in North America,
+are no argument against the Pan-American movement, but rather an
+argument in support of it, as being a prudent and wholesome effort to
+overcome existing obstacles and promote a better understanding between
+neighbours.
+
+Pan-Americanism may be described as the movement which aims at uniting
+all the American republics:--one cannot say all the American countries;
+for in the map printed on the cover of the Pan-American Bulletin, Canada
+is left blank, as not forming part of "Pan-America." This omission alone
+is enough to prove, if proof were needed, that there is something
+artificial about Pan-Americanism: for obviously a New Yorker is more at
+home in Toronto or Halifax than in Rio or Buenos Aires; and there is a
+closer political similarity as well as a closer political bond between
+Washington and Ottawa than between Washington and Caracas. But, after
+all, most political combinations are largely artificial: they are
+products of statesmanship rather than of nature, or at all events they
+are products of nature assisted by statesmanship. And Pan-Americanism
+need not be less real or less valuable for being a construction
+deliberately planned instead of a spontaneous organism. But since the
+Pan-American movement is artificial, and a matter of policy and
+management, still rather formless, Americans of both continents differ
+considerably both as to its meaning and its usefulness, some declaring
+that it means nothing and is useless or even mischievous, while others
+regard it as a kind of perfect circle embracing all the future.
+
+Dr Usher, the American historian, dismisses the whole notion, on the
+ground that the United States and Latin America are utterly unlike,
+unsympathetic and even antipathetic to one another. Against this
+conclusion may be quoted two opinions from Chile and from Colombia, the
+two South American countries which have in the past shown most
+resentment at North American pretensions. "We want no papa" exclaimed a
+Chilian public man some years ago: yet in 1910 Senor Echeverria, Chilian
+consul in London, in a public lecture declared himself a decided
+believer in the benefits of Pan-Americanism, and as disposed to accept
+the sincerity of North American pacific and non-aggressive professions:
+and in the same year Senor Perez Triana, the Colombian diplomatist,
+expressed a restrained but decided optimism concerning the benefits to
+be derived from the Pan-American Congresses, and pointed out that they
+had already brought about the general acceptance of the principle of
+arbitration among American Governments. These favourable views have
+regard to the practical benefits to be found in a certain course of
+action. The destiny of Pan-Americanism depends on the question whether
+these practical benefits are strong enough to overcome the barriers of
+race, language, religion, law, customs and tradition.
+
+The objections based upon these obstacles to union is not quite
+convincing. Incompatibility of temper is a bar to marriage: it is no bar
+to a practical and thoroughly friendly business understanding supported
+by mutual respect and methods of give and take. The tendencies of the
+age favour large combinations, overstepping the bounds of nationality
+and sometimes cutting across the lines of kindred and tradition. The
+challenge of Central Europe has raised up such a combination in Western
+Europe, and may help to give birth to a fresh and large grouping of the
+Powers of the western hemisphere.
+
+The question occurs whether, apart from reasons of practical
+convenience, any fundamental basis can be found for the union of
+communities so dissimilar in character and in action. These republics
+have this at least in common: they have all started life in "new lands";
+they are all trans-Atlantic offshoots from European monarchies; they
+have all thrown off political dependence upon Europe; they have all
+adopted republican forms of government; and, to whatever extent some of
+them may avoid democratic or even republican methods, they have all
+rejected the hereditary principle in government. Moreover, before the
+present crisis they all cultivated, so far as possible, a certain
+political aloofness from Europe: and they all aim at pursuing a destiny
+distinct from and, in their belief, transcending that of Europe through
+the inexhaustible possibilities offered by a New World.
+
+What success has attended the United States in her recent policy of
+approaching Latin America? Here we are on delicate ground, and whatever
+view be expressed is sure to meet with disagreement on the part of
+qualified judges. It is not easy to keep one's finger on the pulse of
+South American sentiment, nor can we expect to find unanimity. We can
+only watch indications and symptoms. In the past, on the whole, the
+attitude of the United States has been accepted in so far as it implied
+protection; but it has been warmly resented in so far as it seemed to
+imply any kind of protectorate. A certain arrogance in the public
+pretensions of the United States has been felt to be an offence and a
+menace; and this feeling has been intensified by the bearing of
+individual Americans. Yet a representative Chilian, Senor Vildosola,
+writing since the outbreak of the war, says, "The United States was not
+popular in Chile; her political attitude was rude and overbearing (_une
+politique brutale_); but in the past ten years this is changed. The Big
+Stick is relegated to the cellars of the White House. A certain
+refinement of forms has appeared in the Secretaryship of State, and a
+deeper knowledge of the peoples of the continent has induced the
+Government, press and people of the United States to treat Chile and her
+neighbours with a new respect and consideration." It may here be noted
+that Chile has lately entered into close economic relations with the
+United States, through the American acquisition of great mining
+properties in Chile and through the export of nitrate and copper to
+North America, largely carried in Chilian government transports.
+
+A representative Brazilian lately remarked to the present writer, "I
+believe there is no danger at all from the United States" and, referring
+to the preferential tariff granted by Brazil to certain imports from the
+United States, he added, "The Americans admit our coffee free, and we
+grant this abatement in return. They tax imports of things that they
+produce, and admit free the things they cannot produce. You English are
+different. You tax our coffee: you tax things you cannot produce and let
+in free the things you can produce." There can be no doubt that these
+close commercial relations and recent large American investments in
+Brazilian industries conduce to this tentative entente with the United
+States.
+
+The relations of the A.B.C. countries seem to indicate similar
+tendencies. It is probable that the main object, which led these three
+republics to entertain proposals of alliance, was security against
+possible danger from the United States. As these apprehensions
+diminished, the proposals were shelved, and the A.B.C. resolved itself
+into its component alphabet. There was another not less interesting
+reason for this dissolution: the proposed combination of the stronger
+South American states was not welcomed by the other republics, which
+felt that an arrangement of this kind did not favour the union and
+harmony of the whole continent, even though the professed intention was
+that it should serve as a nucleus which might gradually win the
+voluntary adhesion of other republics.
+
+Again, those republics which have been drawn closely under the influence
+of the United States, threw in their lot with her by declaring war
+against Germany--a decision which seems to be an act of gratitude, and a
+recognition that their position of dependence is not felt to be irksome
+or degrading.
+
+A recent act of the small but sturdy Republic of Uruguay seems to be
+very significant. After first severing relations with Germany and then
+rescinding her declaration of neutrality, Uruguay decreed that "No
+American State, if engaged in a war against a European State in defence
+of its rights, shall be treated as a belligerent by Uruguay." There is
+something a little whimsical in this previous sweeping aside of all
+contingencies, and one may imagine circumstances where the
+interpretation of this decree might puzzle the legal advisers of the
+Uruguayan Foreign Office. But the whole-hearted comprehensive intention
+of the decree is obvious. Uruguay is prepared to go the whole way in the
+direction of Pan-Americanism, and opens her arms equally to all the
+republics of both American continents.
+
+The proposal to establish a Pan-American University at Panama may be
+worth mentioning here. The suggestion sounds like a product of the
+tropical spirit of those regions; but it may yet take significant shape.
+
+The United States, before entering the war, had largely increased her
+trade with Latin America. She succeeded in supplying, in great degree,
+the gaps left by Germany and Great Britain. Her entry into the war has
+deprived her of part of that advantage. But, on the other hand, the
+final decision, the manner in which it was made, and the resolute way in
+which it is being pursued, have vastly strengthened the moral standing
+of the United States in the New World. Those Latin-American states which
+are dependent on her joined her as belligerents. The action of Brazil,
+though taken independently and inspired more by French than by North
+American sympathies, followed North American action and cannot be wholly
+dissociated from it. Most of the Latin-American states, by their
+attitude towards the war, have as it were mounted guard behind the
+Allies. But the United States stands embattled in front of her southern
+neighbours, to fight the monster which threatens them all. The United
+States now, at last, appears, not merely as the theoretic propounder of
+a protection which was really ensured by the assent of Great Britain and
+the strength of the British fleet, but as the active champion in a
+common cause. This position has been strengthened by President Wilson's
+solemn disavowals of any aggressive intention. These promises have
+produced a marked impression in South America.
+
+The war has brought into view another practical reason for a closer
+inter-American understanding. As long as the United States remained
+neutral, no other American state, such as Brazil, could have incurred
+the risk of entering the war. In the past, while South American
+countries were able to keep apart from European politics, this
+complication or hindrance was latent and remote. But the period of
+aloofness is closed, and the American republics are taking their place
+among the nations of the world. Some kind of permanent entente, some
+standing arrangement for exchanging views and adjusting policy, would
+seem to be the best means of obviating any friction or awkwardness
+between north and south in respect of external relations. Thus a closer
+understanding with the United States may be regarded as a necessary
+condition of closer relations with the rest of the world.
+
+Many who know South America well will dissent from the suggestion that
+the war is helping to mould into some kind of shape the rather shadowy
+scheme called Pan-Americanism. They will point to the fact that most
+South Americans would rather have dealings with a European than with a
+North American and will recall what has been said elsewhere, namely,
+that the two Americas, both historically and actually, face severally
+towards Europe and not towards one another. All this is true; yet there
+are signs that the tendency called Pan-Americanism, hitherto a rather
+unsubstantial vision, may become a reality, differing indeed from the
+picture traced by some North American prophets, but resting upon more
+solid bases. We have touched upon business relations and the machinery
+for carrying them on. As to political relations, the growing strength of
+the greater South American republics counts for much. They feel
+themselves to be in a position to say, "We do not want your protection;
+but we value your equal friendship; for we are Americans as well as you.
+And we are willing to group ourselves together for the preservation and
+protection of that America which is ours." An equal understanding
+between equals--provided it is not too formal at first, and is allowed
+to be moulded by the course of events--would probably meet with a fairly
+general assent, which might gradually win over those holding aloof at
+first. Something of the kind seems to be taking form at the present
+time. The ultimate result may be the formation of a Concert of America,
+in which the more tranquil and educated elements may guide the whole.
+President Wilson has suggested some such arrangement, and proposes a
+combination of American republics as the best security against
+aggression by one American Power upon another.
+
+From what has been said above, it is obvious that some of the Caribbean
+lands would enter such a combination as satellites or subject-allies of
+the United States. Such an arrangement is not unparalleled and does not
+seem impracticable, since these small states have already entered the
+war in that capacity. Obviously, Pan-Americanism cannot aim at precise
+symmetry or theoretical consistency. It must be an elastic system, and
+must be prepared to meet and overcome difficulties. That is the purpose
+of its existence. But in general the first condition of a Pan-American
+combination would seem to be the abandonment of any pretensions to
+hegemony by any one state. Such pretensions have shattered the Concert
+of Europe. But America is a younger Europe which may take example--and
+warning too--from that old Europe which has given her such institutions
+and such order as she possesses. Thus a New World may indeed arise to
+redress the balance of the Old.
+
+       *       *       *       *       *
+
+To the emancipation of Latin America Great Britain and the British
+contributed more than any other outside nation. In the subsequent
+development of those countries, Britain has had a large share. In the
+moral protection afforded to them by the attitude of the United States,
+the unostentatious and almost tacit support of Great Britain has counted
+for much. And those countries are now being drawn nearer to Great
+Britain and nearer to Europe than ever before. The question now
+arises:--In the closer grouping of American states now in process of
+formation, is Great Britain to stand aloof, a sympathetic but silent and
+inactive spectator? That this question has actually been raised in the
+United States, is shown by the following quotation from _The Times
+History of the War_ (chapter 222, page 9): "As the _Philadelphia Ledger_
+put it 'it seemed an absurdity to talk of Pan-Americanism and in the
+same breath to ignore the fact that one of the greatest of the American
+Powers is not included in it.' The _New Republic_ went further ...
+'Pan-Americanism,' it declared, 'is a tripod that cannot stand on two
+legs for ever. Only a combination of the Latin countries, the United
+States and Great Britain, that is to say a combination of all the
+American Powers, can make it a safe and useful organization in the world
+to-day.'"
+
+There is nothing new in this idea; for Bolivar, with singular
+magnanimity, invited Great Britain and the Kingdom of the Netherlands to
+send delegates to the Pan-American Congress which he attempted to
+assemble at Panama in 1826: the circumstances of the time precluded an
+invitation to France. And now that Brazil and Cuba sit at the
+council-board of the Allies in Paris, a conception, which seemed
+feasible a century ago to a great imaginative mind, may perhaps not seem
+so very remote to a practical mind today. For the present epoch has
+brought home to all Americans of both continents a fact which has long
+been known to Canadians and Englishmen, namely that the ocean is no
+estranging gulf between nations. Today it is known that the geographical
+boundary which divides the peoples into two categories and separates the
+Old World of force from the New World of reason is not the Atlantic but
+the Rhine. Thus now, more than ever, does it seem a little incongruous
+that Washington should deny to Ottawa a community of American interests
+which is conceded to Caracas, Asuncion and La Paz.
+
+Yet the scheme thus adumbrated is not at the present time clearly in
+sight. The inclusion of Canada would reverse the system which now
+confines Pan-Americanism to those states which have thrown off all
+political connexion with Europe together with all monarchical forms.
+Moreover, new and large combinations must keep within manageable limits.
+Yet it is significant that a Uruguayan public man, Senor Lopez Lomba, is
+now vigorously agitating, in Paris and in South America, for the
+formation of a Pan-Atlantic Union, wherein the three great Atlantic
+Powers, Britain, France and the United States, are to combine with the
+Latin-American states, in order to wield with full effect that economic
+weapon which is to decide the world conflict. A combination formed for
+an immediate purpose may well have further and larger results. It is an
+interesting speculation whether, in some not very remote future, the
+daughter nations of the Iberian Peninsula may not be drawn into a wide
+circle of understanding with Britain and her daughter nations. Thus,
+that grouping of the Latin and the Anglo-Saxon peoples, which has been
+formed under stress of war, might continue its beneficent working
+through generations of peace. Portugal and Brazil, Great Britain and the
+United States stand side by side. Most of the daughter nations of Spain
+have ranged themselves in the same ranks, beside France, their
+intellectual foster-mother. Spain may yet re-discover herself and her
+true place in the comity of nations. At all events it is a great thing
+to have proved that the line dividing freedom from autocracy does not
+divide the peoples of the New World from their mother Europe, or
+preclude the whole of the former from joining any great international
+league such as the future may have in store for succeeding generations.
+
+FOOTNOTES:
+
+[4] Notably an article by Mr Pratt, Chief of the United States Bureau of
+Commerce, in the _Annals of the American Academy of Social and Political
+Science_.
+
+[5] Bulletin of the Pan-American Union, March 1918.
+
+[6] Mr Pepper, former Foreign Trade Adviser to the United States
+Government, writing in the _Annals of the American Academy of Social and
+Political Science_.
+
+
+
+
+LATIN-AMERICAN REPUBLICS
+
+
+DATES OF INDEPENDENCE
+
+The struggle of the Latin-American States for independence, viewed as a
+whole, extended from 1810 to 1824 and was marked by many vicissitudes.
+Buenos Aires, with most of the Argentine Provinces, practically achieved
+independence in 1810, but did not formally proclaim it till 1816.
+Paraguay detached herself both from Spain and from the Argentine
+Provinces in 1811. Spanish authority was overthrown in Montevideo in
+1814; but it was not until 1828 that that city was recognised as capital
+of an independent Republic, now known as the Republic of Uruguay. Chile
+practically achieved independence in 1818. New Granada, Venezuela and
+Quito were successively liberated from the Spaniards in 1819-22; and
+these three countries were united for a few years under the name of
+Colombia: but in 1829-30 this union broke up into the three Republics of
+Venezuela, Ecuador and New Granada (now known as Colombia). In 1824 the
+battle of Ayacucho gave independence to Peru; and the province of Upper
+Peru was formed into the Republic of Bolivia. The Brazilian monarchy
+became independent in 1821, and was converted into a Republic in 1889.
+Mexico became independent in 1821, and adopted Republican forms in 1823.
+The five provinces to the south-east of Mexico united in 1824 to form a
+Federal Republic under the name of Central America; but in 1839 this
+unstable union broke up into the five Republics of Guatemala, Honduras,
+Salvador, Nicaragua and Costa Rica. In consequence of events in France,
+the island of Haiti became independent in 1803; but Spain occupied the
+eastern part, Santo Domingo, in 1806 and held it for 16 years. The
+island formed one state from 1822 to 1844, in which year it was divided
+into the two existing Republics of Santo Domingo and Haiti. Cuba was
+separated from the Spanish monarchy and formed into a Republic in 1899.
+The province of Panama seceded from Colombia in 1903 and became a
+separate Republic.
+
+       *       *       *       *       *
+
+Since external recognition is an essential condition of complete
+independence, it may here be added that in 1822 the United States
+recognised the independence of Colombia, Chile, Buenos Aires and Mexico;
+and in January 1825 Great Britain recognised the independence of Buenos
+Aires, Colombia and Mexico. This formal recognition was preceded by
+amicable intercourse, by the dispatch of consuls, by relations of a
+commercial and semi-official kind, and by diplomatic action which gave
+countenance and support to the insurgent governments.
+
+
+PRESENT STATUS (AUGUST 1918) AS TOWARDS THE WAR
+
+The following states have declared war with Germany: Brazil, Cuba,
+Panama, Guatemala, Nicaragua, Costa Rica, Haiti, Honduras.
+
+Uruguay has broken off diplomatic relations with Germany, rescinded her
+edict of neutrality, offered the use of her ports to the warships of the
+Allies, and seized the German ships in her harbours.
+
+Peru has broken off relations with Germany, offered the use of her ports
+to the Allies and seized the German ships at Callao.
+
+Bolivia, Ecuador and Santo Domingo have broken off relations with
+Germany. The exact position of Santo Domingo is not easy to define.
+Since May 1916, the administration of that Republic has been practically
+controlled by the United States; and this intimate connexion with a
+belligerent power may perhaps be regarded as constituting a state of
+belligerency for the Dominican Republic.
+
+Mexico, Salvador, Venezuela, Colombia, Chile, Argentina and Paraguay
+maintain their neutrality and their diplomatic relations with Germany.
+
+
+
+
+    CAMBRIDGE: PRINTED BY
+    J. B. PEACE, M.A.,
+    AT THE UNIVERSITY PRESS
+
+
+
+
+[Illustration: SPANISH & PORTUGUESE SETTLEMENTS IN AMERICA]
+
+[Illustration: THE LATIN-AMERICAN REPUBLICS]
+
+
+       *       *       *       *       *
+
+Transcriber's Notes:
+
+Unusual punctuation and spellings retained when used consistently (for
+example, dispatch and despatch); otherwise changed to majority use, with
+the following exceptions:
+
+P. 24: Greek word transliterated ~apoikia~ appears as Greek script in
+original. See utf8 or html for original script.
+
+P. 76: hyphenated "to-day" retained, as quoted from other print source.
+
+P. 76: "organization" retained, as quoted from other print source.
+
+
+
+
+
+End of Project Gutenberg's South America and the War, by F. A. Kirkpatrick
+
+*** END OF THIS PROJECT GUTENBERG EBOOK SOUTH AMERICA AND THE WAR ***
+
+***** This file should be named 38793.txt or 38793.zip *****
+This and all associated files of various formats will be found in:
+        https://www.gutenberg.org/3/8/7/9/38793/
+
+Produced by Adrian Mastronardi, JoAnn Greenwood and the
+Online Distributed Proofreading Team at https://www.pgdp.net
+(This file was produced from images generously made
+available by The Internet Archive/American Libraries.)
+
+
+Updated editions will replace the previous one--the old editions
+will be renamed.
+
+Creating the works from public domain print editions means that no
+one owns a United States copyright in these works, so the Foundation
+(and you!) can copy and distribute it in the United States without
+permission and without paying copyright royalties.  Special rules,
+set forth in the General Terms of Use part of this license, apply to
+copying and distributing Project Gutenberg-tm electronic works to
+protect the PROJECT GUTENBERG-tm concept and trademark.  Project
+Gutenberg is a registered trademark, and may not be used if you
+charge for the eBooks, unless you receive specific permission.  If you
+do not charge anything for copies of this eBook, complying with the
+rules is very easy.  You may use this eBook for nearly any purpose
+such as creation of derivative works, reports, performances and
+research.  They may be modified and printed and given away--you may do
+practically ANYTHING with public domain eBooks.  Redistribution is
+subject to the trademark license, especially commercial
+redistribution.
+
+
+
+*** START: FULL LICENSE ***
+
+THE FULL PROJECT GUTENBERG LICENSE
+PLEASE READ THIS BEFORE YOU DISTRIBUTE OR USE THIS WORK
+
+To protect the Project Gutenberg-tm mission of promoting the free
+distribution of electronic works, by using or distributing this work
+(or any other work associated in any way with the phrase "Project
+Gutenberg"), you agree to comply with all the terms of the Full Project
+Gutenberg-tm License (available with this file or online at
+https://gutenberg.org/license).
+
+
+Section 1.  General Terms of Use and Redistributing Project Gutenberg-tm
+electronic works
+
+1.A.  By reading or using any part of this Project Gutenberg-tm
+electronic work, you indicate that you have read, understand, agree to
+and accept all the terms of this license and intellectual property
+(trademark/copyright) agreement.  If you do not agree to abide by all
+the terms of this agreement, you must cease using and return or destroy
+all copies of Project Gutenberg-tm electronic works in your possession.
+If you paid a fee for obtaining a copy of or access to a Project
+Gutenberg-tm electronic work and you do not agree to be bound by the
+terms of this agreement, you may obtain a refund from the person or
+entity to whom you paid the fee as set forth in paragraph 1.E.8.
+
+1.B.  "Project Gutenberg" is a registered trademark.  It may only be
+used on or associated in any way with an electronic work by people who
+agree to be bound by the terms of this agreement.  There are a few
+things that you can do with most Project Gutenberg-tm electronic works
+even without complying with the full terms of this agreement.  See
+paragraph 1.C below.  There are a lot of things you can do with Project
+Gutenberg-tm electronic works if you follow the terms of this agreement
+and help preserve free future access to Project Gutenberg-tm electronic
+works.  See paragraph 1.E below.
+
+1.C.  The Project Gutenberg Literary Archive Foundation ("the Foundation"
+or PGLAF), owns a compilation copyright in the collection of Project
+Gutenberg-tm electronic works.  Nearly all the individual works in the
+collection are in the public domain in the United States.  If an
+individual work is in the public domain in the United States and you are
+located in the United States, we do not claim a right to prevent you from
+copying, distributing, performing, displaying or creating derivative
+works based on the work as long as all references to Project Gutenberg
+are removed.  Of course, we hope that you will support the Project
+Gutenberg-tm mission of promoting free access to electronic works by
+freely sharing Project Gutenberg-tm works in compliance with the terms of
+this agreement for keeping the Project Gutenberg-tm name associated with
+the work.  You can easily comply with the terms of this agreement by
+keeping this work in the same format with its attached full Project
+Gutenberg-tm License when you share it without charge with others.
+
+1.D.  The copyright laws of the place where you are located also govern
+what you can do with this work.  Copyright laws in most countries are in
+a constant state of change.  If you are outside the United States, check
+the laws of your country in addition to the terms of this agreement
+before downloading, copying, displaying, performing, distributing or
+creating derivative works based on this work or any other Project
+Gutenberg-tm work.  The Foundation makes no representations concerning
+the copyright status of any work in any country outside the United
+States.
+
+1.E.  Unless you have removed all references to Project Gutenberg:
+
+1.E.1.  The following sentence, with active links to, or other immediate
+access to, the full Project Gutenberg-tm License must appear prominently
+whenever any copy of a Project Gutenberg-tm work (any work on which the
+phrase "Project Gutenberg" appears, or with which the phrase "Project
+Gutenberg" is associated) is accessed, displayed, performed, viewed,
+copied or distributed:
+
+This eBook is for the use of anyone anywhere at no cost and with
+almost no restrictions whatsoever.  You may copy it, give it away or
+re-use it under the terms of the Project Gutenberg License included
+with this eBook or online at www.gutenberg.org
+
+1.E.2.  If an individual Project Gutenberg-tm electronic work is derived
+from the public domain (does not contain a notice indicating that it is
+posted with permission of the copyright holder), the work can be copied
+and distributed to anyone in the United States without paying any fees
+or charges.  If you are redistributing or providing access to a work
+with the phrase "Project Gutenberg" associated with or appearing on the
+work, you must comply either with the requirements of paragraphs 1.E.1
+through 1.E.7 or obtain permission for the use of the work and the
+Project Gutenberg-tm trademark as set forth in paragraphs 1.E.8 or
+1.E.9.
+
+1.E.3.  If an individual Project Gutenberg-tm electronic work is posted
+with the permission of the copyright holder, your use and distribution
+must comply with both paragraphs 1.E.1 through 1.E.7 and any additional
+terms imposed by the copyright holder.  Additional terms will be linked
+to the Project Gutenberg-tm License for all works posted with the
+permission of the copyright holder found at the beginning of this work.
+
+1.E.4.  Do not unlink or detach or remove the full Project Gutenberg-tm
+License terms from this work, or any files containing a part of this
+work or any other work associated with Project Gutenberg-tm.
+
+1.E.5.  Do not copy, display, perform, distribute or redistribute this
+electronic work, or any part of this electronic work, without
+prominently displaying the sentence set forth in paragraph 1.E.1 with
+active links or immediate access to the full terms of the Project
+Gutenberg-tm License.
+
+1.E.6.  You may convert to and distribute this work in any binary,
+compressed, marked up, nonproprietary or proprietary form, including any
+word processing or hypertext form.  However, if you provide access to or
+distribute copies of a Project Gutenberg-tm work in a format other than
+"Plain Vanilla ASCII" or other format used in the official version
+posted on the official Project Gutenberg-tm web site (www.gutenberg.org),
+you must, at no additional cost, fee or expense to the user, provide a
+copy, a means of exporting a copy, or a means of obtaining a copy upon
+request, of the work in its original "Plain Vanilla ASCII" or other
+form.  Any alternate format must include the full Project Gutenberg-tm
+License as specified in paragraph 1.E.1.
+
+1.E.7.  Do not charge a fee for access to, viewing, displaying,
+performing, copying or distributing any Project Gutenberg-tm works
+unless you comply with paragraph 1.E.8 or 1.E.9.
+
+1.E.8.  You may charge a reasonable fee for copies of or providing
+access to or distributing Project Gutenberg-tm electronic works provided
+that
+
+- You pay a royalty fee of 20% of the gross profits you derive from
+     the use of Project Gutenberg-tm works calculated using the method
+     you already use to calculate your applicable taxes.  The fee is
+     owed to the owner of the Project Gutenberg-tm trademark, but he
+     has agreed to donate royalties under this paragraph to the
+     Project Gutenberg Literary Archive Foundation.  Royalty payments
+     must be paid within 60 days following each date on which you
+     prepare (or are legally required to prepare) your periodic tax
+     returns.  Royalty payments should be clearly marked as such and
+     sent to the Project Gutenberg Literary Archive Foundation at the
+     address specified in Section 4, "Information about donations to
+     the Project Gutenberg Literary Archive Foundation."
+
+- You provide a full refund of any money paid by a user who notifies
+     you in writing (or by e-mail) within 30 days of receipt that s/he
+     does not agree to the terms of the full Project Gutenberg-tm
+     License.  You must require such a user to return or
+     destroy all copies of the works possessed in a physical medium
+     and discontinue all use of and all access to other copies of
+     Project Gutenberg-tm works.
+
+- You provide, in accordance with paragraph 1.F.3, a full refund of any
+     money paid for a work or a replacement copy, if a defect in the
+     electronic work is discovered and reported to you within 90 days
+     of receipt of the work.
+
+- You comply with all other terms of this agreement for free
+     distribution of Project Gutenberg-tm works.
+
+1.E.9.  If you wish to charge a fee or distribute a Project Gutenberg-tm
+electronic work or group of works on different terms than are set
+forth in this agreement, you must obtain permission in writing from
+both the Project Gutenberg Literary Archive Foundation and Michael
+Hart, the owner of the Project Gutenberg-tm trademark.  Contact the
+Foundation as set forth in Section 3 below.
+
+1.F.
+
+1.F.1.  Project Gutenberg volunteers and employees expend considerable
+effort to identify, do copyright research on, transcribe and proofread
+public domain works in creating the Project Gutenberg-tm
+collection.  Despite these efforts, Project Gutenberg-tm electronic
+works, and the medium on which they may be stored, may contain
+"Defects," such as, but not limited to, incomplete, inaccurate or
+corrupt data, transcription errors, a copyright or other intellectual
+property infringement, a defective or damaged disk or other medium, a
+computer virus, or computer codes that damage or cannot be read by
+your equipment.
+
+1.F.2.  LIMITED WARRANTY, DISCLAIMER OF DAMAGES - Except for the "Right
+of Replacement or Refund" described in paragraph 1.F.3, the Project
+Gutenberg Literary Archive Foundation, the owner of the Project
+Gutenberg-tm trademark, and any other party distributing a Project
+Gutenberg-tm electronic work under this agreement, disclaim all
+liability to you for damages, costs and expenses, including legal
+fees.  YOU AGREE THAT YOU HAVE NO REMEDIES FOR NEGLIGENCE, STRICT
+LIABILITY, BREACH OF WARRANTY OR BREACH OF CONTRACT EXCEPT THOSE
+PROVIDED IN PARAGRAPH 1.F.3.  YOU AGREE THAT THE FOUNDATION, THE
+TRADEMARK OWNER, AND ANY DISTRIBUTOR UNDER THIS AGREEMENT WILL NOT BE
+LIABLE TO YOU FOR ACTUAL, DIRECT, INDIRECT, CONSEQUENTIAL, PUNITIVE OR
+INCIDENTAL DAMAGES EVEN IF YOU GIVE NOTICE OF THE POSSIBILITY OF SUCH
+DAMAGE.
+
+1.F.3.  LIMITED RIGHT OF REPLACEMENT OR REFUND - If you discover a
+defect in this electronic work within 90 days of receiving it, you can
+receive a refund of the money (if any) you paid for it by sending a
+written explanation to the person you received the work from.  If you
+received the work on a physical medium, you must return the medium with
+your written explanation.  The person or entity that provided you with
+the defective work may elect to provide a replacement copy in lieu of a
+refund.  If you received the work electronically, the person or entity
+providing it to you may choose to give you a second opportunity to
+receive the work electronically in lieu of a refund.  If the second copy
+is also defective, you may demand a refund in writing without further
+opportunities to fix the problem.
+
+1.F.4.  Except for the limited right of replacement or refund set forth
+in paragraph 1.F.3, this work is provided to you 'AS-IS' WITH NO OTHER
+WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO
+WARRANTIES OF MERCHANTIBILITY OR FITNESS FOR ANY PURPOSE.
+
+1.F.5.  Some states do not allow disclaimers of certain implied
+warranties or the exclusion or limitation of certain types of damages.
+If any disclaimer or limitation set forth in this agreement violates the
+law of the state applicable to this agreement, the agreement shall be
+interpreted to make the maximum disclaimer or limitation permitted by
+the applicable state law.  The invalidity or unenforceability of any
+provision of this agreement shall not void the remaining provisions.
+
+1.F.6.  INDEMNITY - You agree to indemnify and hold the Foundation, the
+trademark owner, any agent or employee of the Foundation, anyone
+providing copies of Project Gutenberg-tm electronic works in accordance
+with this agreement, and any volunteers associated with the production,
+promotion and distribution of Project Gutenberg-tm electronic works,
+harmless from all liability, costs and expenses, including legal fees,
+that arise directly or indirectly from any of the following which you do
+or cause to occur: (a) distribution of this or any Project Gutenberg-tm
+work, (b) alteration, modification, or additions or deletions to any
+Project Gutenberg-tm work, and (c) any Defect you cause.
+
+
+Section  2.  Information about the Mission of Project Gutenberg-tm
+
+Project Gutenberg-tm is synonymous with the free distribution of
+electronic works in formats readable by the widest variety of computers
+including obsolete, old, middle-aged and new computers.  It exists
+because of the efforts of hundreds of volunteers and donations from
+people in all walks of life.
+
+Volunteers and financial support to provide volunteers with the
+assistance they need are critical to reaching Project Gutenberg-tm's
+goals and ensuring that the Project Gutenberg-tm collection will
+remain freely available for generations to come.  In 2001, the Project
+Gutenberg Literary Archive Foundation was created to provide a secure
+and permanent future for Project Gutenberg-tm and future generations.
+To learn more about the Project Gutenberg Literary Archive Foundation
+and how your efforts and donations can help, see Sections 3 and 4
+and the Foundation web page at https://www.pglaf.org.
+
+
+Section 3.  Information about the Project Gutenberg Literary Archive
+Foundation
+
+The Project Gutenberg Literary Archive Foundation is a non profit
+501(c)(3) educational corporation organized under the laws of the
+state of Mississippi and granted tax exempt status by the Internal
+Revenue Service.  The Foundation's EIN or federal tax identification
+number is 64-6221541.  Its 501(c)(3) letter is posted at
+https://pglaf.org/fundraising.  Contributions to the Project Gutenberg
+Literary Archive Foundation are tax deductible to the full extent
+permitted by U.S. federal laws and your state's laws.
+
+The Foundation's principal office is located at 4557 Melan Dr. S.
+Fairbanks, AK, 99712., but its volunteers and employees are scattered
+throughout numerous locations.  Its business office is located at
+809 North 1500 West, Salt Lake City, UT 84116, (801) 596-1887, email
+business@pglaf.org.  Email contact links and up to date contact
+information can be found at the Foundation's web site and official
+page at https://pglaf.org
+
+For additional contact information:
+     Dr. Gregory B. Newby
+     Chief Executive and Director
+     gbnewby@pglaf.org
+
+
+Section 4.  Information about Donations to the Project Gutenberg
+Literary Archive Foundation
+
+Project Gutenberg-tm depends upon and cannot survive without wide
+spread public support and donations to carry out its mission of
+increasing the number of public domain and licensed works that can be
+freely distributed in machine readable form accessible by the widest
+array of equipment including outdated equipment.  Many small donations
+($1 to $5,000) are particularly important to maintaining tax exempt
+status with the IRS.
+
+The Foundation is committed to complying with the laws regulating
+charities and charitable donations in all 50 states of the United
+States.  Compliance requirements are not uniform and it takes a
+considerable effort, much paperwork and many fees to meet and keep up
+with these requirements.  We do not solicit donations in locations
+where we have not received written confirmation of compliance.  To
+SEND DONATIONS or determine the status of compliance for any
+particular state visit https://pglaf.org
+
+While we cannot and do not solicit contributions from states where we
+have not met the solicitation requirements, we know of no prohibition
+against accepting unsolicited donations from donors in such states who
+approach us with offers to donate.
+
+International donations are gratefully accepted, but we cannot make
+any statements concerning tax treatment of donations received from
+outside the United States.  U.S. laws alone swamp our small staff.
+
+Please check the Project Gutenberg Web pages for current donation
+methods and addresses.  Donations are accepted in a number of other
+ways including including checks, online payments and credit card
+donations.  To donate, please visit: https://pglaf.org/donate
+
+
+Section 5.  General Information About Project Gutenberg-tm electronic
+works.
+
+Professor Michael S. Hart was the originator of the Project Gutenberg-tm
+concept of a library of electronic works that could be freely shared
+with anyone.  For thirty years, he produced and distributed Project
+Gutenberg-tm eBooks with only a loose network of volunteer support.
+
+
+Project Gutenberg-tm eBooks are often created from several printed
+editions, all of which are confirmed as Public Domain in the U.S.
+unless a copyright notice is included.  Thus, we do not necessarily
+keep eBooks in compliance with any particular paper edition.
+
+
+Most people start at our Web site which has the main PG search facility:
+
+     https://www.gutenberg.org
+
+This Web site includes information about Project Gutenberg-tm,
+including how to make donations to the Project Gutenberg Literary
+Archive Foundation, how to help produce our new eBooks, and how to
+subscribe to our email newsletter to hear about new eBooks.
diff --git a/38793.zip b/38793.zip
new file mode 100644
index 0000000..b2b35fe
--- /dev/null
+++ b/38793.zip
diff --git a/LICENSE.txt b/LICENSE.txt
new file mode 100644
index 0000000..6312041
--- /dev/null
+++ b/LICENSE.txt
@@ -0,0 +1,11 @@
+This eBook, including all associated images, markup, improvements,
+metadata, and any other content or labor, has been confirmed to be
+in the PUBLIC DOMAIN IN THE UNITED STATES.
+
+Procedures for determining public domain status are described in
+the "Copyright How-To" at https://www.gutenberg.org.
+
+No investigation has been made concerning possible copyrights in
+jurisdictions other than the United States. Anyone seeking to utilize
+this eBook outside of the United States should confirm copyright
+status under the laws that apply to them.
diff --git a/README.md b/README.md
new file mode 100644
index 0000000..be1e62e
--- /dev/null
+++ b/README.md
@@ -0,0 +1,2 @@
+Project Gutenberg (https://www.gutenberg.org) public repository for
+eBook #38793 (https://www.gutenberg.org/ebooks/38793)