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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. 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