LATIN AMERICA: Death for Sale

In four continents of the world there was bitter sorrow last week over War. But in the fifth, the carrot-shaped continent, there was frank rejoicing.

South America’s reaction to the conflict was almost entirely economic, almost entirely bullish. Businessmen, confident that no South American nation would be actively involved, remembering the mints made in the last War, having experienced no real fighting except the Chaco War and revolts in Brazil, saw that their continent would be the world’s tuck shop. South America would sell at hot prices all the raw materials which had lain fallow and unproductive in the past decade. War would wipe out with one black stroke all the hobbling economic nostrums of dictators—depreciated currencies, frozen gold stocks, exchange controls, restricted imports, excessive taxation. Effects on various Latin-American countries:

Argentina showed the biggest immediate gains. Since War became imminent the country’s grain board has sold Europe over 1,000,000 tons of wheat; last week Britain and France ordered 16,635 tons of chilled and frozen meats, to be delivered, besides standing orders, by October 31.

Bolivia, not quite over the shock of losing its dictator, half-German Germán Busch, by suicide (Time, Sept. 4), was the only Latin-American country to get the jitters. It restricted imports, curtailed gold shipments, prohibited speculation. But its tin and copper were expected to boom.

Brazil was the first Government to proclaim neutrality. Manganese, coffee and rubber in demand.

Chile, in the midst of Navy war games, declared it would be strictly neutral in the sale of its murderous nitrates and essential copper. Chile was far and away the biggest South American exporter during World War I.

Colombia expropriated all commercial aviation, most of which was German-owned, -staffed, -piloted. Minerals began moving.

Cuba’s tobacco was due for a fall, sugar for a rise. Havana was proposed as a free port, where both sides could pick up the raw materials of death from neutral sellers.

Peru’s President Oscar Benavides cleared the way for Peru’s copper, cotton, petroleum.