REPORT 
 
 OF THE 
 
 SECRETARY OF THE TREASURY 
 
 TO THE 
 
 PRESIDENT 
 
 ON THE 
 
 SECOND PAN AMERICAN 
 FINANCIAL CONFERENCE 
 AT WASHINGTON, JANU- 
 ARY 19-24, 1920. 
 
 CONVENED UNDER AUTHORITY OF PUBLIC ACT 379 OF THE 
 SIXTY-FOURTH CONGRESS. 
 
 WASHINGTON 
 
 GOVERNMENT PRINTING OFFICE 
 1921 
 
REPORT 
 
 OF THE 
 
 SECRETARY OF THE TREASURY 
 
 TO THE 
 
 PRESIDENT 
 
 ON THE 
 
 SECOND PAN AMERICAN 
 FINANCIAL CONFERENCE 
 AT WASHINGTON, JANU- 
 ARY 19-24, 1920. 
 
 CONVENED UNDER AUTHORITY OF PUBLIC ACT 379 OF THE 
 SIXTY-FOURTH CONGRESS. 
 
 WASHINGTON 
 
 GOVERNMENT PRINTING OFFICE 
 1921 
 
THE SECOND PAN AMERICAN FINANCIAL CONFERENCE. 
 
 REPORT OF THE SECRETARY OF THE TREASURY TO 
 THE PRESIDENT. 
 
 SIR : Under authority of Public Act 379 of the Sixty-fourth Con- 
 gress, 1 and by your direction, the Department of State invited the 
 Governments of Mexico, Central and South America, and the Repub- 
 lics of the West Indies to be represented at a Second Pan American 
 Financial Congress to be held at Washington from the 12th to the 
 17th of January, 1920. All the Governments to which the invitation 
 was sent accepted, and most of them, with a view to contribute to 
 the fullest extent to the success of the conference, indicated their 
 willingness to send as chairmen of their delegations their ministers 
 of finance. Whether or not circumstances permitted the ministers 
 of finance to absent themselves from home for the duration of the 
 conference and the voyage to and from the United States, these 
 eminent financial officers of government were uniformly and sin- 
 cerely interested in the purposes of the conference, as shown by their 
 success in setting on foot preliminary examinations of its program 
 by representative financiers and jurists. This program, in tentative 
 form, had been distributed among the ministers of finance in June, 
 1919. In the course of the next few months various suggestions were 
 received, some from the ministers of finance and some from persons 
 in the United States who had been consulted. These suggestions 
 were found acceptable and incorporated in the final program, which 
 was circulated in the late fall of 1919. The delegates named by the 
 Governments were in nearly all cases furnished with the revised 
 edition before their departure from their several capitals. 
 
 1 The President is authorized to extend to the Governments of Central and South 
 America an invitation to be represented by their ministers of finance and leading bankers, 
 not exceeding three in number in each case, to attend the Second Pan American Finan- 
 cial Conference in the city of Washington, at. such date as shall be determined by the 
 President, with a view to carrying on the work initiated at the First Pan American 
 Financial Conference and establishing closer and more satisfactory financial relations 
 between their countries and the United States of America, and authority is given to the 
 Secretary of the Treasury to invite, in his discretion, representative citizens* of the 
 United States to participate in the said conference, and for the purpose of meeting 
 such actual and necessary expenses as may be incidental to the meeting of said con- 
 ference and for the entertainment of the foreign delegates during the conference, to be 
 expended under the direction of the Secretary of the Treasury, to be immediately avail- 
 able and to remain available until expended, $50,000. 
 
 5 
 
6 SECOND PAN AMERICAN FINANCIAL CONFERENCE. 
 
 Owing to the irregular and altogether inadequate transportation 
 facilities between a number of the American Republics and the 
 United States, several delegations found it impossible to reach Wash- 
 ington in time for the opening of the conference, and it became 
 necessary to postpone the date of its opening one week. The pre- 
 liminary session of the foreign delegates with the Secretary of the 
 Treasury took place on Saturday afternoon, January 17, 1920, in 
 the Hall of the Americas in the Pan American Union Building, and 
 the formal inaugural session occurred in the same place on Monday, 
 January 19. The conference closed its plenary sessions on Friday, 
 January 23, and the official part of its program concluded with a 
 banquet tendered to the delegations by the Secretary of the Treasury 
 on Saturday, January 24, and with another banquet tendered to them 
 at New York by the Pan American Society of the United States on 
 Tuesday, January 27. 
 
 The work of the conference was done, generally speaking, in much 
 the same way as the work of the First Pan American Financial Con- 
 ference, which took place in Washington in May, 1915. There were 
 two general committees composed of the presiding officers of the 
 official delegations and an appropriate number of citizens of the 
 United States. The first of these general committees was that desig- 
 nated to collect and examine all resolutions offered by other com- 
 mittees of the conference directly, or by delegates to the conference 
 in its general sessions. This committee submitted a report embody- 
 ing 18 resolutions, which now constitute the formal and collective 
 recommendations of the official delegations to the conference, made 
 with the approval of the 296 United States citizens who served as 
 committeemen and to whose help in great measure must be attributed 
 the success of the conference. Although the time of year was hardly 
 propitious for such a gathering, either because of the inclemency of 
 weather or because of the pressure of business in the month of Janu- 
 ary, these gentlemen put aside other considerations and accepted the 
 invitation to serve in this advisory capacity. 
 
 The second general committee was designated to consider all the 
 problems of communication between the American Republics, in- 
 cluding those relating to maritime transportation facilities, postal 
 communications, and cable and wireless facilities. The Hon. Joshua 
 W. Alexander, Secretary of Commerce, acted as general chairman of 
 this committee and took a personal and constructive part in its work. 
 A report embodying the conclusions of several subcommittees desig- 
 nated to examine the main headings enumerated above was submitted 
 to the conference by this committee and given its formal approval. 
 
 In addition to the two general committees, there were 19 national 
 or " group conference " committees, comprising, in each case, the re- 
 spective official delegation and about 15 financiers, economists, engi- 
 
LETTER OF THE SECRETARY OF THE TREASURY. 7 
 
 neers, and industrial leaders of the United States who had been 
 selected with an eye to the particular problems before the respective 
 committees, so far as these problems were known to the Treasury 
 Department. The presiding officers of the official delegations be- 
 came automatically chairmen of the group conference committees; 
 they had associated with them, as vice chairmen in some cases, the 
 gentlemen designated by the Treasury as interim chairmen of 
 those representing the United States upon the several commit- 
 tees. They likewise enjoyed the enthusiastic and sustained coopera- 
 tion of a number of the high officials of the Government, mostly 
 within the field of public finance, but, in several notable instances, in 
 other executive departments. 
 
 It will be seen from the program of meetings of the conference 
 that its great accomplishment was due to the conference commit- 
 tees, which met almost continuously during the first three days of 
 the conference. The Secretary of the Navy had been good enough 
 to place at the disposal of the conference a number of convenient 
 rooms suited for the accommodation of such committees in the new 
 Navy Building. Here, in intimate association and in an atmosphere 
 conducive to the utmost degree of frankness, the program of the 
 conference was discussed systematically, with special reference to 
 the financial problems of the respective countries. 
 
 The general sessions of the conference were held at night, for the 
 most part, with a view to leave the day as free as possible for the 
 meetings of the committees. There were delivered at the general ses- 
 sions a number of able addresses by distinguished delegates and citi- 
 zens of the United States. To these general sessions were invited 
 persons interested in Latin America, or in a general way in the prob- 
 lems confronting the conference. 
 
 The conference was a gathering primarily for intensive labor with 
 less time or taste for formality on the one hand, or diversion on the 
 other, than is sometimes the case in international gatherings. Never- 
 theless, private hospitality found numerous opportunities for ex- 
 pression during the week of the conference, while the deference of the 
 Government to its guests was significantly demonstrated in the recep- 
 tion tendered by the Secretary of State and Mrs. Lansing on Wednes- 
 day, January 21 ; by the luncheon to the delegates on Saturday, Janu- 
 ary 17 ; and to the delegations and conference committeemen on Mon- 
 day, January 19, by the Secretary of the Treasury in the first in- 
 stance and by the Federal Reserve Board and United States section 
 of the International High Commission in the second instance; and 
 finally, by the banquet with which the conference closed its meetings 
 in Washington. The Secretary of the Navy again added greatly to 
 the enjoyment by the official delegations of their sojourn in this 
 country by his generous invitation to them to be the guests of the 
 
8 SECOND PAN AMERICAN FINANCIAL CONFERENCE. 
 
 Navy at Annapolis on Saturday, January 24. A number of the dele- 
 gates and members of their families took occasion of early arrival in 
 Washington to avail themselves of an invitation to visit Mount Vernon 
 and seek inspiration at the tomb of the foremost figure of our War 
 for Independence, whose name acquires an ever greater influence 
 throughout the nations of this hemisphere. 
 
 The secretary-general of the conference, in accordance with the 
 plan approved by my predecessor, Mr. Secretary Glass, has gathered 
 in convenient form its records, including the proceedings of the 
 sessions, the addresses, the reports of committees, and the lists of 
 persons in attendance. I wish, in submitting for your examination 
 a summary of this material, to call attention to three considerations 
 which I regard of paramount importance. 
 
 The purpose of this conference was, in substance, the same as the 
 purpose of the First Financial Conference in 1915. The Government 
 of the United States felt that the responsible financial officers of the 
 several American Republics had much in common in facing the 
 serious problems arising from the adjustment of war conditions, that 
 they would best serve the interests of all the Governments by entering 
 into a full and free discussion of methods of solving these problems. 
 The first conference was called amid the impressions, still vivid and 
 even painful, of the initial paralysis of international communications, 
 commerce, and finance in the winter of 1914-15. It was necessary to 
 take stock of the resources of the American hemisphere and of the 
 equipment for their development and enjoyment. 
 
 Four years of war passed. A number of the American Republics 
 were drawn into the struggle, and, stopping at no sacrifice, brought 
 it to a decisive end. The American Republics felt its effect with 
 varying degrees of directness and distress, but no one of them escaped 
 a serious measure of economic loss. They had naturally relied upon 
 the financial assistance of the Old World in the development of their 
 natural resources, while they had welcomed the immigrant who chose 
 to leave the Old World and seek his fortune in the New. The war 
 put an end nearly everywhere to the flow of capital and labor required 
 not merely to promote the development, but often to assure the sound- 
 ness of Latin- American commerce and industry. The effect of four 
 years of abnormal economic life, of industrial undernourishment, of 
 apprehension, of insecurity made the situation confronting the 
 peoples of Central and South America at the close of the conflict even 
 more grave than it had been in 1915. The development of sufficient 
 resources in Europe to renew the arrested development in South and 
 Central America could not safely be counted upon for the present. 
 It was, therefore, not merely expedient, but urgent, that the effort be 
 made by the American Governments to survey the situation and to 
 
LETTER OF THE SECRETARY OF THE TREASURY. 9 
 
 take such joint or several measures as would best promote their indi- 
 vidual and common interests. 
 
 The conference of 1915 came when it did because of the war ; but 
 there is good reason to believe that abundant cause for holding such 
 a meeting would have been apparent before long, even if the great 
 conflict had been happily averted. The developments between 1915 
 and 1920 strengthened the conviction that these conferences have ful- 
 filled a natural and quite definite purpose. It is, of course, to be 
 clearly understood that in inviting eminent business men of the 
 United States to join the Secretary of the Treasury in conferring 
 with the ministers of finance and other official delegates from Mex- 
 ico, Central and South America and the West Indies, our Govern- 
 ment had no intention of taking^ a formal and responsible part in 
 any program of investment and financial development of the other 
 countries. 
 
 The purpose was to reinforce the conclusions of the personal con- 
 ferences between the official representatives of the American Repub- 
 lics with the mature opinions of citizens of this country whose tech- 
 nical knowledge, training in public finance, or experience, warranted 
 close attention to their views. Out of such first-hand examination of 
 the financial problems of the several countries, it was not unreasonably 
 expected that there would develop among the members of the group 
 committees an abiding and constructive interest in the respective 
 countries with which they were concerned. 
 
 From the foregoing statement the fundamental reasons for calling 
 the First and then the Second Pan American Financial Conference 
 should be clear. The stimulus of good relations which such gather- 
 ings can not but afford would alone have justified their convocation, 
 were it for nothing more than the economic advantages in due course 
 flowing from them. But something larger and more significant was 
 involved, and will be involved in other conferences, if the Congress 
 shall from time to time authorize their taking place. Our bankers 
 and those seeking to build markets for export trade are certain to 
 join more and more actively in defining and supporting this policy; 
 and as a consequence, the collection and diffusion of accurate in- 
 formation among our people will be taken up with redoubled energy 
 by the various agencies devoted to the development of closer rela- 
 tions cultural, economic, or official between the free nations of 
 this hemisphere. The outlay on the part of the Government of 
 energy, time, and funds, would be trifling, regardless of the number 
 of conferences which might be held, if the fact became clearly recog- 
 nized by the people of the United States, (1) that the other Ameri- 
 can Republics are likely to become more and more important markets 
 in which to sell the things we produce and to buy the things we 
 
10 SECOND PAN AMERICAN FINANCIAL CONFERENCE. 
 
 need, and (2) that in order that we may be certain to enjoy our 
 opportunities as buyers or sellers in those countries, we shall have to 
 encourage their financial and industrial expansion as best we may 
 by investment and other appropriate means. 
 
 The paramount consideration of the importance of Latin Amer- 
 ica as an investment field and as a commercial market for the United 
 States has two corollary aspects to which, in closing, I wish briefly 
 to advert. The transportation facilities between the other coun- 
 tries and the United States have never been what they should have 
 been, largely because the economic demand for them was never 
 pressing. Europe enjoyed, and even yet enjoys, better facilities 
 than the United States in all branches of communication with the 
 greater part of Latin America. Whether as to postal facilities 
 or those of telegraph and radio communication, it is imperative 
 that, for commercial reasons if for no other, measures be taken to 
 provide for the independence of our facilities of all other interests. 
 As to the lack of maritime transportation facilities, so much evi- 
 dence some of it of a costly character has been accumulated dur- 
 ing the last few years that it is only necessary here to call atten- 
 tion to the repeated emphasis laid by the conference upon an im- 
 provement in this regard as the first essential in promoting our re- 
 lations with Central and South America throughout the entire con- 
 ference. Hardly a committee report fails to urge that steps be 
 taken with the least possible delay to correct the uncertainties and 
 insufficiencies of the present service. The rehabilitation and ex- 
 tension of land transportation facilities, whether by rail or other- 
 wise, is hardly less strongly stressed as a prerequisite of the open- 
 ing up of new resources and a better development of those to which 
 access is already possible. 
 
 The second corollary to the importance of closer financial rela- 
 tions between the Republics is to be found in the approval with which 
 the conference regarded the work of the Inter- American High Com- 
 mission. The first conference saw the need of a continuing body of 
 persons eminent in their respective callings and acquainted with the 
 national problems of the various Republics, which would undertake 
 seriously to carry out its own recommendations. Hitherto no special 
 agency had been set up to give effect in a practical way to the recom- 
 mendations of intermittent international conferences. It was 
 thought that a group of financiers and jurists in each country, 
 closely in contact with the minister of finance and engaged in con- 
 stant correspondence with the other sections and with some central 
 directive body, could gradually bring to an advanced stage and, in 
 due course, to realization the chief points enumerated by that first 
 conference as demanding international cooperation. The organiza- 
 
LETTEE OF THE SECRETARY OF THE TREASURY. 11 
 
 tion was set up, and at an important meeting in Buenos Aires, it 
 worked out a procedure by which it proposed to accomplish the 
 things for which it was established. The vice chairman of the com- 
 mission laid before the conference on January 20 a record of its 
 achievement since the meeting at Buenos Aires, and, in accordance 
 with his recommendation, in order better to indicate the constituency 
 and significance of the commission, its name was changed from 
 " International High Commission " to " Inter-American High Com- 
 mission." New matters were intrusted to its study and it was given 
 encouragement to pursue its activity with reference to those things it 
 had taken up under the instruction of the first conference. It was 
 unmistakably apparent that at least one successful method had been 
 found for international cooperation in an effective way in technical 
 matters within the province of fiscal administration, commercial 
 law, and public finance. The setting upon a new and broader basis 
 of this agency in all the Republics seems sure and can not but serve 
 to remove obstacles in the way of ever closer and stronger financial 
 and commercial relations. 
 
 Respectfully, 
 
 D. F. HOUSTON, 
 
 Secretary. 
 THE PRESIDENT, 
 
 The White House. 
 
REPORT OF THE SECRETARY-GENERAL. 
 
 JANUARY 23, 1920. 
 The honorable the SECRETARY OF THE TREASURY. 
 
 SIR : I have the honor to report to you that the Second Pan Amer- 
 ican Financial Conference has this day completed its survey of the 
 topics submitted for its consideration. There have been in attend- 
 ance 53 delegates from 19 of the American Republics, whose diplo- 
 matic representatives at Washington have likewise been the guests 
 of the Secretary of the Treasury, together with 283 gentlemen repre- 
 sentative of the financial and industrial communities of the United 
 States whom the Secretary of the Treasury invited to join him in 
 conferring with the official delegates. The deliberations of the con- 
 ference have been carried out in five general sessions, in each of 
 which formal papers were submitted, followed by informal discus- 
 sion. Twenty-one committees have reviewed the agenda of the 
 conference over a period of three days. Of these, nineteen were 
 conference committees, each taking up the topics agreed upon with 
 particular reference to one of the republics represented in the con- 
 ference. Two of these committees were general in character. One 
 dealt with problems of communication, including ocean and land 
 transportation, and postal, cable, and radio telegraphic communica- 
 tions. This was necessarily the case in view of the international 
 character of these topics. Finally, the committee on resolutions has 
 brought together all the conclusions of a concrete character submitted 
 to the conference and formulated those upon which it has seemed 
 appropriate that the conference should consider a formal expression 
 of opinion. 
 
 The conclusions of the conference will be communicated to the 
 several participating governments, to the sections of the Inter- 
 American High Commission, arid to others directly or indirectly 
 interested therein. 
 
 I have the honor to state that no further business requires the 
 attention of the conference. 
 Respectfully^ 
 
 L. S. ROWE, 
 Secretary -General. 
 12 
 
RESOLUTIONS ADOPTED BY THE CONFERENCE, JANU- 
 ARY 23, 1920. 
 
 I. Resolved, That, with a view more definitely to indicate the con- 
 stituency and sphere of work of the International High Commission, 
 the title of that body shall hereafter be " the Inter- American High 
 Commission." 
 
 II. Resolved, That the conference adopts that part of the report of 
 the Committee on Transportation and Communication relating to 
 maritime transportation and directs its transmission to the United 
 States Shipping Board for consideration and action, and that, so 
 far as concerns the subjects of railroad transportation, postal facili- 
 ties, uniformity of bills of lading, and wireless, cable, and telegraph 
 communication the report be transmitted to the Inter- American 
 High Commission for suitable action. 
 
 III. Whereas banks, both National and State, in the United States 
 have established branches in various Latin American countries; and 
 
 Whereas restrictions exist under the laws of various States of the 
 United States which in effect prevent the operation of branches of 
 foreign banks within their jurisdiction : 
 
 Therefore we recommend that the legislation in such States be so 
 modified as to permit the establishment of branches of banks of 
 Latin American countries, under proper regulations, so as to secure 
 equality of treatment. 
 
 IV. Resolved, That the Inter- American High Commission be re- 
 quested to study the question of the possibility of achieving uni- 
 formity and relative equality in the laws and regulations governing 
 the organization of corporations and the treatment of foreign cor- 
 porations in the various American Republics. 
 
 V. Resolved, That the conference recommends the increased use 
 of acceptances for the purpose of financial transactions involving 
 the importation and exportation of goods and hopes that, with the 
 passing of the period of readjustment in which nations are now en- 
 gaged, the United States will offer a constantly widening market 
 for the long-term securities of American countries. 
 
 VI. Resolved, That the Inter- American High Commission be re- 
 quested to continue its efforts to bring about the adoption of the 
 plan recommended at Buenos Aires in 1916 for the establishment of 
 an International Gold Fund, such plan having already been em- 
 bodied in a convention which has been adopted by several of the 
 American Republics. 
 
 13 
 
14 SECOND PAN AMERICAN FINANCIAL CONFERENCE. 
 
 VII. Resolved, That steps having heretofore been taken to bring 
 about the adoption by the American countries of a uniform law in 
 regard to bills of exchange, the conference requests the Inter- Amer- 
 ican High Commission to bring to the notice of the American Gov- 
 ernments the desirability of adopting a uniform law on the subject 
 of checks. 
 
 VIII. Resolved, That, in view of the increase and diversification 
 of taxes in the various American countries, the Inter- American High 
 Commission be asked to study the question of the best method of 
 avoiding the simultaneous double taxation of individuals and cor- 
 porations as between such countries. 
 
 IX. Whereas the International Bureau, at Habana, for the regis- 
 tration of trade-marks, as provided in the convention adopted by the 
 Fourth International American Conference at Buenos Aires in 1910, 
 has been opened and is in successful operation ; 
 
 Resolved, That the conference recommends the early ratification 
 of that convention by all the American countries that have not so far 
 ratified it, to the end that its provisions may be effective throughout 
 the Americas. 
 
 Meanwhile, it is suggested that, pending the establishment of 
 the International Bureau at Rio de Janeiro, consideration be 
 given to the use of the Habana bureau by countries of the south- 
 ern group that have ratified the convention. 
 
 X. Resolved, That the conference recommends the early ratifica- 
 tion by the American Republics, so far as they have not already rati- 
 fied it, of the convention adopted by the International American 
 Conference at Buenos Aires, in 1910, concerning patents and copy- 
 rights. 
 
 XI. Resolved, That the conference recommends that the Webb Law 
 be so amended as to permit American companies importing or dealing 
 in raw materials produced abroad to form, under proper govern- 
 mental regulations, organizations to enable such companies to com- 
 pete on terms of equality with companies of other countries associated 
 for the conduct of such business. 
 
 XII. Resolved, That the conference recognizes the value of the 
 services of commercial attaches and strongly urges a substantial 
 extension of the system. 
 
 In making this recommendation, the conference intends to ex- 
 press its sense of the importance of appropriate training, lin- 
 guistic and otherwise, for all branches of the foreign service, as 
 a means of developing and facilitating commercial and financial 
 relations. 
 
 XIII. Resolved, That a simultaneous census should be taken in all 
 the American countries at regular intervals not exceeding 10 years, 
 
RESOLUTIONS OF THE CONFERENCE. 15 
 
 in harmony with the system prevailing in the United States, and that 
 uniformity should be observed in the preparation of statistical works. 
 
 XIV. Resolved, That the conference recommends that the metric 
 system of weights and measures be universally employed, and that 
 pending the attainment of that end articles weighed and marked, and 
 shipping documents prepared, according to the system of weights and 
 measures now prevailing in the United States, should be accompanied 
 with statements giving the equivalents under the metric system. 
 
 XV. Resolved. That the plan of arbitration of commercial disputes 
 put into effect between the Bolsa de Gomercio of Buenos Aires and 
 the United States Chamber of Commerce, and since adopted by the 
 chambers of commerce of several other American countries, should be 
 extended to all the American countries, and that legislation should 
 be adopted wherever it is now lacking for the purpose of incorporat- 
 ing the arbitral settlement of commercial disputes into the judicial 
 system, to be carried out under the supervision of the courts. 
 
 XVI. Resolved, That the Inter- American High Commission be re- 
 quested to study the question of the creation of an inter- American 
 tribunal for the adjustment of questions of a commercial or financial 
 nature involving two or more American countries, and the deter- 
 mination of such questions on principles of law and equity. 
 
 XVII. Resolved, That, it being in the interest of all nations that 
 there should be the widest possible distribution of raw materials, the 
 importation of such materials into any country should not be pre- 
 vented by prohibitive duties. 
 
 XVIII. Resolved, That it is recommended that the banking inter- 
 ests of the United States study the possibility of financial relief to 
 Europe by repaying Latin- American obligations held in Europe by 
 means of new loans granted in the United States to the respective 
 Latin- American countries. 
 
 
 RESERVATIONS TO RESOLUTIONS. 
 
 II. TRANSPORTATION. 
 
 The Bolivian delegation in approving the second resolution of the 
 Conference, makes the reservation that the Inter-American High 
 Commission, when studying the subject of land transportation, shall 
 take into consideration the Bolivian propositon, which reads as 
 follows : 
 
 In order that the Pan-American Railroad may be enabled to 
 fulfill the high ideals which inspired its execution, and furnish 
 overland connection between all the countries of the Americas, 
 we propose that a transverse line, crossing South America from 
 
16 SECOND PAN AMERICAN FINANCIAL CONFERENCE. 
 
 east to west, shall be considered as an integral part of that same 
 railroad, and that for this purpose the lines already constructed 
 may be utilized so far as possible. 
 
 J. L. TEJADA. 
 
 The Brazilian delegation desires to make a reservation in similar 
 
 terms. 
 
 SAMPAIO. 
 
 VI. INTERNATIONAL GOLD CLEARANCE FUND. 
 
 The Venezuelan delegation fails to approve the recommendation 
 for an international gold clearance fund, because Venezuela needs 
 more specie than she now possesses for her increased business activi- 
 ties, which should be stimulated for the public good, and also because 
 it is desirable to maintain a financial balance. Venezuela can not 
 accept the draft or resolution for the present. 
 
 V. LECUNA. 
 VIII. DOUBLE TAXATION. 
 
 Venezuela agrees to a single system of taxation of individuals and 
 corporations, provided the country wherein the taxable properties 
 are located determines the kind and fixes the rate of taxation. 
 
 V. LECUNA. 
 XI. THE WEBB LAW. 
 
 The Venezuelan delegation fails to approve the recommendation 
 relative to the Webb law, because it considers that the United States 
 is the country to pass on that subject. 
 
 V. LECUNA. 
 
 XVII. RAW MATERIALS. 
 
 Venezuela considers that each country should retain its liberty to 
 protect its national production, where it is desirable so to do. 
 
 V. LECUNA. 
 
 The words "Minerals and foodstuffs" ought to be incorporated, 
 making the resolution cover "raw materials, minerals, and food- 
 stuffs." 
 
 SAMPAIO. 
 
LIST OF OFFICERS OF THE CONFERENCE. 
 
 PRESIDING OFFICER. 
 
 THE SECRETARY or THE TREASURY 
 OF THE UNITED STATES. 
 
 HONORARY PRESIDENTS. 
 
 MINISTER OF FINANCE OF ARGENTINA. 
 MINISTER OF FINANCE OF BOLIVIA. 
 MINISTER OF FINANCE OF BRAZIL. 
 MINISTER OF FINANCE OF CHILE. 
 MINISTER OF FINANCE OF COLOMBIA. 
 MINISTER OF FINANCE OF CUBA. 
 MINISTER OF FINANCE OF DOMINICAN REPUBLIC. 
 MINISTER OF FINANCE OF ECUADOR. 
 MINISTER OF FINANCE OF GUATEMALA. 
 MINISTER OF FINANCE OF HAITI. 
 MINISTER OF FINANCE OF HONDURAS. 
 MINISTER OF FINANCE OF MEXICO. 
 MINISTER OF FINANCE OF NICARAGUA. 
 MINISTER OF FINANCE OF PANAMA. 
 MINISTER OF FINANCE OF PARAGUAY. 
 MINISTER OF FINANCE OF PERU. 
 MINISTER OF FINANCE OF EL SALVADOR. 
 MINISTER OF FINANCE OF URUGUAY. 
 MINISTER OF FINANCE OF VENEZUELA . 
 1497021 2 17 
 
VICE PRESIDENTS. 
 
 SENOR DR. DOMINGO E. SALABERRY, Chairman, Delegation of Ar- 
 gentina. 
 
 SENOR DR. JOSE Luis TEJADA, Chairman, Delegation of Bolivia. 
 
 SENHOR DR. CARLOS CESAR DE OLIVEIRA SAMPAIO, Chairman, Delega- 
 tion of Brazil. 
 
 SENOR DR. Luis IZQUIERDO, Chairman, Delegation of Chile. 
 
 SENOR DR. POMPONIO GUZMAN, Chairman, Delegation of Colombia. 
 
 SENOR DR. CARLOS MANUEL DE CESPEDES, Chairman, Delegation of 
 Cuba. 
 
 SENOR DR. Luis GALVAN, Chairman, Delegation of the Dominican Re- 
 public. 
 
 SENOR DR. EAFAEL H. ELIZALDE, Chairman, Delegation of Ecuador. 
 
 SENOR DR. Luis TOLEDO HERRARTE, Chairman, Delegation of Guate- 
 mala. 
 
 M. FLEURY FEQUIERE, Chairman, Delegation of Haiti. 
 
 GEN. JUAN E. PAREDES, Chairman, Delegation of Honduras. 
 
 SENOR ING. YGNACIO BONILLAS, Chairman, Delegation of Mexico. 
 
 SENOR DR. OCTAVIANO CESAR, Chairman, Delegation of Nicaragua. 
 
 SENOR DR. JOSE AUGUSTIN ARANGO, Chairman, Delegation of Panama. 
 
 SENOR DR. EUSEBIO AYALA, Chairman, Delegation of Paraguay. 
 
 SENOR DR. FERNANDO C. FUCHS, Chairman, Delegation of Peru. 
 
 SENOR DR. JOSE ESPERANZA SUAY, Chairman, Delegation of El Sal- 
 vador. 
 
 SENOR DR. RICARDO VECINO, Chairman, Delegation of Uruguay. 
 
 SENOR DR. VICENTE LECUNA, Chairman, Delegation of Venezuela. 
 
 SECRETARY GENERAL. 
 
 L. S. ROWE. 
 
 ASSISTANT SECRETARIES GENERAL. 
 
 C. E. McGuiRE. G. A. SHERWELL. 
 
 SPECIAL ASSISTANTS. 
 
 BRANCH, H. N. MURRAY, J. H. 
 
 CORLISS, J. C. OVALLE, J. Q. 
 
 ENGLE, M. L. PARKER, J. BROOKS B. 
 
 KIZER, E. D. RICKARD, J. D. 
 
 LuiTWEILER, J. C. RlNGE, H. R. 
 
 MCPHERSON, C. R. THIESING, T. H. 
 
 18 
 
LIST OF OFFICIAL DELEGATIONS, SPECIAL GUESTS OF 
 THE SECRETARY OF THE TREASURY, SPECIAL REP- 
 RESENTATIVES OF THE SECRETARY OF THE TREAS- 
 URY, AND MEMBERS OF THE COMMITTEES. 1 
 
 SPECIAL GUESTS OF THE SECRETARY OF THE TREASURY. 
 
 His Excellency the AMBASSADOR OF ARGENTINA. 
 
 His Excellency the AMBASSADOR OF BRAZIL. 
 
 His Excellency the AMBASSADOR OF CHILE. 
 
 His Excellency the AMBASSADOR OF MEXICO. 
 
 His Excellency the AMBASSADOR OF PERU. 
 
 The MINISTER OF BOLIVIA. 
 
 The MINISTER OF COLOMBIA. 
 
 The MINISTER OF CUBA. 
 
 The MINISTER OF THE DOMINICAN REPUBLIC. 
 
 The MINISTER OF ECUADOR. 
 
 The MINISTER OF GUATEMALA. 
 
 The MINISTER OF HAITI. 
 
 The MINISTER OF HONDURAS. 
 
 The MINISTER OF NICARAGUA. 
 
 The MINISTER OF PANAMA. 
 
 The MINISTER OF PARAGUAY. 
 
 The MINISTER OF EL SALVADOR. 
 
 The MINISTER OF URUGUAY. 
 
 The MINISTER OF VENEZUELA. 
 
 1 The Hon. John Barrett, Director General of the Pan American Union, was invited 
 by the Secretary of the Treasury to serve as a member of all the group committees, 
 
 19 
 
COMMITTEE ON RESOLUTIONS. 
 
 JOHN BASSETT MOORE, of New York, Chairman. 
 
 Domingo E. Salaberry, Argentina. 
 
 Jose" Luis Tejada, Bolivia. 
 
 Carlos C6sar de Oliveira Sampaio, 
 
 Brazil. 
 
 Luis Izquierdo, Chile. 
 Pomponio Guzman, Colombia. 
 Carlos Manuel de Ce*spedes, Cuba. 
 Luis Galvan, Dominican Republic. 
 Rafael H. Elizalde, Ecuador. 
 Luis Toledo Herrarte, Guatemala. 
 Fleury Fequiere, Haiti. 
 Juan E. Paredes, Honduras. 
 Ygnacio Bonillas, Mexico. 
 Octaviano C6sar, Nicaragua. 
 Jose" Agustfn Arango, Panama. 
 Eusebio Ayala, Paraguay. 
 Fernando C. Fuchs, Peru. 
 
 Jose 1 Esperanza Suay, Salvador. 
 
 Ricardo Vecino, Uruguay. 
 
 Vicente Lecuna, Venezuela. 
 
 John Barrett, of the District of Colum- 
 bia. 
 
 Franklin Q. Brown, of New York. 
 
 Frederick A. Delano, of the District of 
 Columbia. 
 
 John H. Fahey, of Massachusetts. 
 
 Charles S. Hamlin, of the District of 
 Columbia. 
 
 Archibald Kains, of New York. 
 
 Eugene Meyer, Jr., of New York. 
 
 Andrew J. Peters, of Massachusetts. 
 
 W. S. Rowe, of Ohio. 
 
 Frank A. Vanderlip, of New York. 
 
 Paul M. Warburg, of New York. 
 
 THEODORE H. THIESING, of New York, Secretary. 
 COMMITTEE ON TRANSPORTATION AND COMMUNICATIONS. 
 
 JOSHUA W. ALEXANDER, of Missouri, Chairman. 
 
 Ricardo C. Aldao, Argentina. 
 
 Ricardo Martinez Vargas, Bolivia. 
 
 Carlos Csar de Oliveira Sampaio, 
 Brazil. 
 
 Alberto Edwards, Chile. 
 
 Tomas Surf Salcedo, Colombia. 
 
 Luis Gonzalez de Mendoza y Freyre de 
 Andrade, Cuba. 
 
 Arthur B. Mayo, Dominican Republic. 
 
 Luis Felipe Borja, Ecuador. 
 
 Manual Echeverrfa y Vidaurre, Guate- 
 mala. 
 
 Horace Etheart, Haiti. 
 
 Ignacio Agurcia, Honduras. 
 
 Bartolome 1 Carbajal y Rosas. Mexico. 
 
 Adolfo Cardenas, Nicaragua. 
 
 Luis E. Alfaro, Panama. 
 
 Rodney Croskey, Paraguay. 
 
 Pedro DAvalos y Lisson, Peru. 
 
 Reyes Arrieta Rossi, Salvador. 
 
 Florencio AragOn y Etchart, Uruguay. 
 
 Enrique Perez Dupuy, Venezuela. 
 
 Admiral W. H. G. Bullard, U. S. N. 
 
 Ira A. Campbell, of New York. 
 
 E. T. Chamberlain, of the District of 
 Columbia. 
 
 Hendon Chubb, of New York. 
 
 A. H. Dick, of New York. 
 
 James A. Farrell, of New York. 
 
 Herbert Fleishhacker, of California. 
 
 J. P. Grace, of New York. 
 
 Walker D. Hines, of New York. 
 
 E. N. Hurley, of Illinois. 
 
 Julius G. Lay, of the District of Co- 
 lumbia. 
 
 W. G. McAdoo, of New York. 
 
 Alfred E. Marling, of New York. 
 
 Frank C. Munson, of New York. 
 
 Walter Parker, of Louisiana. 
 
 C. M. Pepper, of New York. 
 
 T. C. Powell, of the District of Colum- 
 bia. 
 
 Admiral H. H. Rousseau, U. S. N. 
 
 J. J. Shirley, of New York. 
 
 Raymond B. Stevens, of New Hamp- 
 shire. 
 
 Edwin F. Sweet, of Michigan. 
 
 20 
 
 JAMES C. CORLISS, of Massachusetts, Secretary. 
 
ARGENTINA. 
 
 CONFERENCE COMMITTEE. 
 
 Official Delegation. 
 
 His EXCELLENCY, DR. DOMINGO E. SALABERRY, MINISTER or FINANCE 
 
 or THE ARGENTINE REPUBLIC. 
 
 DR. RICARDO C. ALDAO. 
 
 MR. LUIS E. ZUBERBUHLER. 
 
 Secretariat. 
 
 MR. ALEJANDRO E. BTJNGE, Technical Adviser. 
 
 DR. PEDRO PALACIOS, Secretary. 
 
 MR. EDUARDO OCANTOS, MR. JACOBO WAISHMAN, MR. FERNANDO SAGTUIER, JR., 
 
 LIEUT. A. PARKER. 
 
 Special Guest of the Secretary of the Treasury. 
 
 His EXCELLENCY THE AMBASSADOR or THE ARGENTINE REPUBLIC 
 
 AT WASHINGTON. 
 
 Special Representative of the Secretary of the Treasury. 
 HON. W. P. G. HARDING, GOVERNOR OF THE FEDERAL RESERVE BOARD. 
 
 % United States Members of the Group Committee. 
 
 Frank A. Vanderlip, of New York, Chairman. 
 Charles H. Bentley, of California. 
 H. E. Byram, of Illinois. 
 Hendon Chubb, of New York. 
 F. Abbott Goodhue, of Massachusetts. 
 E. N. Hurley, of Illinois. 
 Ira N. Hollis, of Massachusetts. 
 Archibald Kains, of New York. 
 Edward Dudley Kenna, of New York. 
 Marc M. Michael, of New York. 
 Frank C. Munson, of New York. 
 Walter Parker, of Louisiana. 
 Andrew J. Peters, of Massachusetts. 
 E. R. A. Seligman, of New York. 
 Henry L. Janes, of New York, Secretary. 
 
BOLIVIA. 
 
 CONFERENCE COMMITTEE. 
 Official Delegation. 
 
 DR. JOSE Luis TEJADA S. 
 DR. HERIBERTO GUTIERREZ. 
 DR. RICARDO MARTINEZ VARGAS. 
 
 Secretariat. 
 
 MB. ALBEBTO CORTADELLAS, First Secretary. 
 
 MB. JOBGE GUTIERREZ, Secretary. 
 
 MB. EDUABDO RIVAS, Secretary. 
 
 MR. JORGE DELGADO, Commercial Attached 
 
 Special Guest of the Secretary of the Treasury. 
 THE .MINISTER OF BOLIVIA AT WASHINGTON. 
 
 Special Representative of the Secretary of the Treasury. 
 HON. WALTER W. WARWICK, COMPTROLLER or THE TREASURY. 
 
 United States Members of the Group Committee.. 
 
 Joseph P. Grace, of New York, Chairman. 
 Arthur L. Church, of Pennsylvania. 
 J. Rogers Flannery, of Pennsylvania. 
 Harry F. Guggenheim, of New York. 
 Arthur M. Harris, of New York. 
 John Hughes, of New York. 
 Harrison C. Lewis, of New York. 
 Charles M. Pepper, of New York. 
 G. C. Poole, of New York. 
 Calvin W. Rice, of New York. 
 George H. Richards, of New York. 
 Henry C. Ulen, of New York. 
 Charles Lyon Chandler, of Pennsylvania, Secretary. 
 
BRAZIL. 
 
 CONFERENCE COMMITTEE. 
 
 Official Delegation. 
 
 DR. CARLOS CESAR DE OLIVEIRA SAMPAIO. 
 DB. MANGEL COELHO RODBIGUES, Legal Adviser and Secretary. 
 
 Special Guest of the Secretary of the Treasury. 
 His EXCELLENCY THE AMBASSADOR OF BRAZIL AT WASHINGTON. 
 
 Special Representative of the Secretary of the Treasury. 
 
 HON. ALBERT STRAUSS, VICE GOVERNOR OF THE FEDERAL RESERVE 
 
 BOARD. 
 
 United States Members of the Group Committee. 
 
 Oscar T. Crosby, of Virginia, Chairman. 
 Chandler P. Anderson, of the District of Columbia. 
 Joseph H. Bagley, of New York. 
 William S. Culbertson, of Kansas. 
 Henry S. Dennison, of Massachusetts. 
 A. H. Dick, of New York. 
 W. Cameron Forbes, of Massachusetts. 
 Edward S. Huxley, of New York. 
 W. S. Kies, of New York. 
 Frederico Lage, of New York. 
 F. A. Molitor, of New York. 
 A. S. Peabody, of Illinois. 
 William E. Peck, of New York. 
 V. H. Pinckney, of California. 
 Gerard Swope, of New York. 
 Theodore F. Whitmarsh, of New York. 
 Percy A. Martin, of California, Secretary. 
 
 23 
 
CHIL*. 
 
 CONFERENCE COMMITTEE. 
 
 Official Delegation. 
 
 DR. LUIS IzQUIERDO. 
 
 DR. SAMUEL CLARO. 
 DR. ALBERTO EDWARDS. 
 DR. VICTOR V. EOBLES. 
 
 DE. AETUBO LAMAECA BELLO, Secretary. 
 
 Special Guest of the Secretary of the Treasury. 
 His EXCELLENCY THE AMBASSADOR or CHILE AT WASHINGTON. 
 
 Special Representative of the Secretary of the Treasury. 
 HON. EDWIN F. SWEET, ASSISTANT SECRETARY or COMMERCE. 
 
 United States Members of the Group Committee. 
 Paul M. Warburg, of New York, Chairman. 
 
 Spruille Braden, of New York. 
 Laurie R. Cofer, of California. 
 Edward P. Costigan, of Colorado. 
 Daniel A. de Menocal, of Massachusetts. 
 C. H. Ewing, of Pennsylvania. 
 Andrew Fletcher, of New York. 
 John Hays Hammond, of the District of Columbia. 
 N. B. Kelly, of Pennsylvania. 
 F. I. Kent, of New York. 
 J. C. McKinley, of West Virginia. 
 M. A. Oudin of New York. 
 J. Luis Schaefer, of New York. 
 A. H. Titus, of New York. 
 Pope Yeatman, of New York. 
 Verne Leroy Havens, of New York, Secretary. 
 24 
 
COLOMBIA. 
 
 CONFERENCE COMMITTEE. 
 
 Official Delegation. 
 
 His EXCELLENCY, DK. POMPONIO GUZMAN, MINISTER OF FINANCE or 
 
 COLOMBIA. 
 
 DR. TOMAS SURI SALCEDO. 
 MR. EBNESTO CoRTfssoz, Attach^. 
 
 Special Guest of the Secretary of the Treasury. 
 THE MINISTER OF COLOMBIA AT WASHINGTON. 
 
 Special Representative of the Secretary of the Treasury. 
 HON. CHARLES S. HAMLIN, OF THE FEDERAL RESERVE BOARD. 
 
 United States Members of the Group Committee. 
 
 Wallace D. Simmons, of Missouri, Chairman. 
 Joseph G. Brown, of North Carolina. 
 Maurice Coster, of New York. 
 
 E. A. deLima, of New York. 
 
 F. C. Dillard, of Texas. 
 
 John Henry Hammond, of New York. 
 
 George H. Kretz, of New York. 
 
 F. Lavis, of New York. 
 
 J. Ruperti, of New York. 
 
 L. K. Salsbury, of Tennessee. 
 
 James Brown Scott, of Maryland. 
 
 W. R. Shepherd, of New York. 
 
 George M. Shriver, of Maryland. 
 
 R. Lancaster Williams, of Maryland. 
 
 William E. Dunn, of New York, Secretary. 
 
 26 
 
CUBA. 
 
 CONFERENCE COMMITTEE. 
 
 Official delegation. 
 
 DR. CARLOS MANUEL DE CESPEDES, MINISTER or CUBA AT WASHINGTON. 
 
 MR. Luis GONZALEZ DE MENDOZA Y FREYRE DE ANDRADE. 
 
 CORONEL MANUEL DESPAIGNE. 
 
 MB. POBFOBIO BONET, Secretary. 
 
 Special representative of the Secretary of the Treasury. 
 HON. ANGUS MOL/EAN, DIRECTOR or THE WAR FINANCE CORPORATION. 
 
 United States members of the Group Committee. 
 Milton C. Elliott, of the District of Columbia. Acting Chairman. 
 Phanor J. Eder, of New York. 
 Philip W. Henry, of New York. 
 Charles D. Makepeace, of New York. 
 E. M. Patterson, of Pennsylvania. 
 C. A. Phillips, of New Hampshire. 
 Levi L. Rue, of Pennsylvania. 
 Frederick Strauss, of New York. 
 Albert E. Tate, of North Carolina. 
 G. C. Taylor, of New York. 
 Henry B. Wilcox, of Maryland. 
 William H. Woodin, of New York. 
 Robert E. Griffith, of the District of Columbia, Secretary. 
 26 
 
DOMINICAN REPUBLIC. 
 
 CONFERENCE COMMITTEE. 
 
 Official delegation. 
 
 DR. Luis GALVAN, MINISTER OF THE DOMINICAN REPUBLIC AT 
 
 WASHINGTON. 
 
 Lieut. Commander Arthur B. Mayo, United States Navy, technical 
 
 delegate. 
 
 Special representative of the Secretary of the Treasury. 
 HON. NORMAN H. DAVIS, ASSISTANT SECRETARY OF THE TREASURY. 
 
 United States members of the Group Committee. 
 
 Charles J. Rhoads, of Pennsylvania. Chairman. 
 W. D. Anderson, of Pennsylvania. 
 A. F. Dawson, of Iowa. 
 F. R. Fairchild, of Connecticut. 
 Paul Fuller, Jr., of New York. 
 George D. Graves, of New York. 
 Chauncey H. Hand, Jr., of New York. 
 J. T. Holdsworth, of Pennsylvania. 
 Frank J. R, Mitchell, of New York. 
 Joseph H. O'Neil, of Massachusetts. 
 Morris K. Parker, of New York. 
 Charles T. Plunkett, of Massachusetts. 
 A. Gonzalez Lamas, of New York, Secretary. 
 
 27 
 
ECUADOR. 
 
 CONFERENCE COMMITTEE. 
 
 Official Delegation. 
 
 DR. RAFAEL H. ELJZALDE, MINISTER OF ECUADOR AT WASHINGTON. 
 
 DR. Luis FELIPE BORJA. 
 MR. GUSTAVO R. DE YCAZA. 
 
 /Special Representative of the Secretary of the Treasury. 
 
 HON. HENRY A. MOEHLENPAH, MEMBER OF THE FEDERAL RESERVE 
 
 BOARD. 
 
 United States Members of the Group Committee. 
 
 E. M. Herr, of Pennsylvania, Chairman. 
 E. M. Borchard, of Connecticut. 
 Harry L. Brown, of Massachusetts. 
 O. K. Davis, of New York. 
 Fred W. Ellsworth, of Louisiana. 
 Herbert Fleishhacker, of California. 
 Clifford D. Ham, of New York. 
 Robert O. Hayward, of New York. 
 George de B. Keim, of Pennsylvania. 
 Walter H. Lipe, of New York. 
 Benoni Lockwood, of New York. 
 Howard A. Loeb, of Pennsylvania. 
 John McHugh, of New York. 
 George H. Prince, of Minnesota. 
 J. W. Stoll, of Kentucky. 
 Walter M. Van Deusen, of New York. 
 Thomas F. Woodlock, of New York. 
 George T. Weitzel, of the District of Columbia, Secretary. 
 28 
 
GUATEMALA. 
 
 CONFERENCE COMMITTEE. 
 
 Official Delegation. 
 
 His EXCELLENCY, DR. Luis TOLEDO HERRARTE, MINISTER or FOREIGN 
 
 AFFAIRS OF GUATEMALA. 
 
 DR. MANUEL ECHEVERRIA Y VIDAURRE. 
 
 DR. VIRGILIO RODRIGUEZ BETETA. 
 
 Special Guest of the Secretary of the Treasury. 
 THE MINISTER OF GUATEMALA AT WASHINGTON. 
 
 Special Representative of the Secretary of the Treasury. 
 
 HON. THOMAS WALKER PAGE, VICE CHAIRMAN OF THE UNITED STATES 
 
 TARIFF COMMISSION. 
 
 United States Members of the Group Committee. 
 
 John Clausen, of Washington, Chairman. 
 A. G. Bates, of New York. 
 A. C. Burrage, of Massachusetts. 
 L. A. Coolidge, of Massachusetts. 
 F. A. Delano, of Illinois. 
 John L. Dickey, of West Virginia. 
 A. B. Farquhar, of Pennsylvania. 
 William Fisher, of California. 
 Samuel Gompers, of the District of Columbia. 
 Roy H. Griffin, of New York. 
 Frank K. Houston, of Missouri. 
 E. W. Kemmerer, of New Jersey. 
 A. C. Robinson, of Pennsylvania. 
 George S. Wright, of Massachusetts. 
 D. G. Munro, of New Jersey, Secretary. 
 
 29 
 
HAITI. 
 
 CONFERENCE COMMITTEE. 
 Official Delegation. 
 
 His EXCELLENCY, M. FLEURY FEQTJIERE, MINISTER OF FINANCE 
 
 OF HAITI. 
 
 M. HORACE ETHEART. 
 M. FERNAND DENNIS. 
 
 Special Guest of the Secretary of the Treasury. 
 THE MINISTER OF HAITI AT WASHINGTON. 
 
 Special Representative of the Secretary of the Treasury. 
 
 HON. D. C. BIGGS, GOVERNOR OF THE FEDERAL RESERVE BANK or 
 
 ST. Louis. 
 
 United States Members of the Group Committee. 
 
 Edward Hidden, of Missouri, Chairman. 
 Charles J. Andre, of Minnesota. 
 L. R. Browne, of New York. 
 Paul W. Chapman, of New York. 
 J. W. Esmond, of Illinois. 
 M. B. Lane, of Georgia. 
 E. S. Lee, of Kentucky. 
 Will E. Morris, of California. 
 G. A. O'Reilly, of New York. 
 Joseph E. Otis, of Illinois. 
 Gustave Scholle, of the District of Columbia. 
 T. Stebbins, of New York. 
 Arthur H. Wood, of New Jersey. 
 Julius Goebel, Jr., of Illinois, Secretary. 
 30 
 
HONDURAS. 
 
 CONFERENCE COMMITTEE. 
 
 Official Delegation. 
 
 GENERAL JUAN E. PAREDES. 
 DR. ANTONIO LOPEZ VILLA. 
 DR. IGNACIO AGURCIA! 
 
 Special Guest of the Secretary of the Treasury. 
 THE MINISTER OF HONDURAS AT WASHINGTON. 
 
 Special Representative of the Secretary of the Treasury. 
 
 HON. J. U. CALKINS, GOVERNOR OF THE FEDERAL RESERVE BANK OF 
 
 SAN FRANCISCO. 
 
 United States Members of the Group Committee. 
 
 John W. Thomas, of Illinois, Chairman. 
 M. F. Backus, of Washington. 
 James M. Barker, of Massachusetts. 
 Charles J. Brand, of Pennsylvania. 
 H. K. Brooks, of New York. 
 Victor M. Cutter, of Massachusetts. 
 E. H. Darville, of New York. 
 Charles de la Vasselais, of Louisiana. 
 C. T. Owens, of Alabama. 
 John S. Rossell, of Delaware. 
 Samuel Sachs, of New York. 
 C. E. W. Smith, of New York. 
 Thomas D. Mott, of Indiana, Secretary. 
 
 31 
 
MEXICO. 
 
 CONFERENCE COMMITTEE. 
 
 Official Delegation. 
 
 His EXCELLENCY, YGNACIO BONILLAS, AMBASSADOR OF MEXICO AI 
 
 WASHINGTON. 
 
 DR. ENRIQUE MARTINEZ SOBRAL. 
 DR. BARTOLOME CARBAJAL y ROSAS. 
 
 Secretariat. 
 
 DR. SALVADOR URBINA. 
 MB. ALBERTO CENTENO. 
 
 MR. JULIO POULAT. 
 MR. FRANCISCO VALDES. 
 
 /Special Representative of the /Secretary of the Treasury. 
 HON JOHN SKELTON WILLIAMS, COMPTROLLER OF THE CURRENCY. 
 
 United States Members of the Group Committee. 
 
 Robert S. Brookings, of Missouri, Chairman. 
 E. N. Brown, of New York. 
 Henry Bruere, of New York. 
 Edward W. Decker, of Minnesota. 
 John S. Drum, of California. 
 S. T. Henry, of New York. 
 Alba B. Johnson, of Pennsylvania. 
 William H. Knox, of New York. 
 George L. LeBlanc, of New York. 
 Theodore C. Lyster, of Mew York. 
 Robert F. Maddox, of Georgia. 
 William M. Ritter, of Ohio. 
 W. L. Sibert, of the District of Columbia. 
 G. R. Tuska, of New York. 
 Charles H. Cunningham, of Texas, Secretary 
 32 
 
NICARAGUA. 
 
 CONFERENCE COMMITTEE. 
 
 Official Delegation. 
 
 His EXCELLENCY DR. OCTAVIANO CESAR, MINISTER OF FINANCE or 
 
 NICARAGUA. 
 
 DR. ADOLFO CARDENAS. 
 MR. A. F. LINDBERG. 
 
 Special Guest of the Secretary of the Treasury. 
 THE MINISTER OF NICARAGUA AT WASHINGTON. 
 
 Special Representative of the Secretary of the Treasury. 
 HON. A. C. MILLER, OF THE FEDERAL RESERVE BOARD. 
 
 United States Members of the Group Committee. 
 
 W. L. Saunders, of New York, Chairman. 
 J. Gilmore Fletcher, of New York. 
 Leslie E. Freeman, of New York. 
 Charles J. Gerstenberg, of New York. 
 Robert N. Harper, of the District of Columbia. 
 Walter W. Head, of Nebraska. 
 Jeremiah W. Jenks, of New York. 
 S. C. Mead, of New York. 
 William P. Philips, of New York. 
 William A. Prendergrast, of New York. 
 Paul S. Reinsch, of Wisconsin. 
 Charles P. Vaughan, of Pennsylvania. 
 Sol Wexler, of New York. 
 Elmer H. Youngman, of New York. 
 E. D. Kizer, of New York, Secretary. 
 
 1497021 3 
 
PANAMA. 
 
 CONFERENCE COMMITTEE. 
 
 Official Delegation. 
 
 MR. JOSE AGUSTIN ARANGO. 
 
 DR. Luis E. ALFARO. 
 DR. JUAN NAVARRO DAZ. 
 
 Special Guest of the Secretary of the Treasury. 
 THE MINISTER OF PANAMA AT WASHINGTON. 
 
 Special Representative of the Secretary of the Treasury. 
 
 HON. M. B. WELLBORN, GOVERNOR OF THE FEDERAL RESERVE 
 BANK OF ATLANTA. 
 
 United States Members of the Group Committee. 
 
 James Brown, of New York, Chairman. 
 Lindell T. Bates, of New York. 
 Henry G. Brengle, of Pennsylvania. 
 Charles Henry Butler, of the District of Columbia. 
 Thomas F. Crean, of New York. 
 B. S. Cutler, of New York. 
 Nelson A. Gladding, of Indiana. 
 J. A. House, of Ohio. 
 George L. Hoxie, of New Jersey. 
 George F. Kunz, of New York. 
 George Mixter, of New York. 
 Eugene W. Ong, of Massachusetts. 
 Clarence J. Owens, of the District of Columbia. 
 Walter S. Penfield, of the District of Columbia. . 
 G. F. Swain, of Massachusetts. 
 A. W. Tedcastle, of Massachusetts. 
 J. G. Eppinger, of Illinois, Secretary. 
 A. I. Hasskarl, of Nebraska, Acting Secretary. 
 34 
 

 PARAGUAY. 
 
 CONFERENCE COMMITTEE. 
 
 Official Delegation. 
 
 His EXCELLENCY DR. EUSEBIO AYALA, MINISTER OF FINANCE OF 
 
 PARAGUAY. 
 
 MR. RODNEY CROSKEY. 
 MR. PEDRO JORBA, Jr. 
 
 DR. ENRIQUE BORDENAVE, Secretary. 
 
 Special Guest of the Secretary of the Treasury. 
 THE MINISTER OF PARAGUAY AT WASHINGTON. 
 
 Special Representative of the Secretary of the Treasury. 
 
 HON. JULIUS G. LAY, FOREIGN TRADE ADVISER, THE DEPARTMENT OF 
 
 STATE. 
 
 United States Members of Group Committee. 
 
 Lewis E. Pierson, of New York, Chairman. 
 C. K. Anderson, of Illinois. 
 W. E. Aughinbaugh, of New York. 
 William M. Baldwin, of New York. 
 Dudley Bartlett, of Pennsylvania. 
 Constant Cordier, of New York. 
 E. M. Haig, of New York. 
 Herbert H. Houston, of New York. 
 Nicholas P. Lloyd, of Pennsylvania. 
 Richard I. Manning, of South Carolina. 
 J. N. G. Nesbit, of New York. 
 John S. Pendleton, of New York. 
 Thomas W. Streeter, of New York. 
 Otto Wilson, of the District of Columbia, Secretary. 
 
 3* 
 
PERU. 
 
 CONFERENCE COMMITTEE. 
 
 Official Delegation. 
 
 His EXCELLENCY, DR. FERNANDO C. FUCHS, MINISTER OF FINANCE or 
 
 PERU. 
 DR. PEDRO DAVALOS Y LISSON. 
 
 DR. RlCARDO BuLLEN. 
 
 Special Guest of the Secretary of the Treasury. 
 His EXCELLENCY THE AMBASSADOR OF PERU AT WASHINGTON. 
 
 Special Representative of the Secretary of the Treasury. 
 HON. GEORGE W. NORRIS, FARM LOAN COMMISSIONER. 
 
 United States Members of the Group Committee. 
 
 John H. Fahey, of Massachusetts, Chairman. 
 Fred Cardway, of New York. 
 John Joy Edson, of the District of Columbia. 
 Hollis Godfrey, of Pennsylvania. 
 William C. Gorgas, of New York. 
 Richard S. Hawes, of Missouri. 
 Emory R. Johnson, of Pennsylvania. 
 Alfred Meyer, of New York. 
 C. D. Mitchell, of Tennessee. 
 James M. Motley, of New York. 
 T. C. Powell, of the District of Columbia. 
 H. Parker Willis, of New York. 
 C. M. Woolley, of New York. 
 Harry Erwin Bard, of New York, Secretary. 
 86 
 
SALVADOR. 
 
 CONFERENCE COMMITTEE. 
 
 Official Delegation. 
 His EXCELLENCY, DR. JOSE ESPERANZA SUAY, MINISTER OF FINANCE 
 
 OF SALVADOR. 
 DR. REYES ARRIETA Rossi. 
 
 Special Guest of the Secretary of the Treasury. 
 THE MINISTER OF SALVADOR AT WASHINGTON. 
 
 Special Representative of the Secretary of the Treasury. 
 HON. JAMES H. MOYLE, ASSISTANT SECRETARY OF THE TREASURY. 
 
 United States Members of the Group Committee. 
 
 W. S. Rowe, of Ohio, Chairman. 
 J. Howard Ardrey, of New York. 
 John P. Frenzel, Jr., of Indiana. 
 O. C. Fuller, of Wisconsin. 
 George H. Harries, of New York. 
 J. B. Havre, of California. 
 James T. Keena, of Michigan. 
 George C. Luebbers, of New York. 
 George E. Macomber, of Maine. 
 G. A. Northcott, of West Virginia. 
 Harry Harwood Rousseau, of the District of Columbia. 
 Dayton Shelly, of Pennsylvania. 
 Sidney Story, of Michigan. 
 Jerome Thralls, of New York. 
 Charles W. Warden, of the District of Columbia. 
 Oscar Wells, of Alabama. 
 Walter F. McCaleb, of New York, Secretary. 
 
 37 
 
URUGUAY. 
 
 CONFERENCE COMMITTEE. 
 
 Official Delegation. 
 
 His EXCELLENCY, DR. RICARDO VECINO, MINISTER or FINANCE OF 
 
 URUGUAY. 
 DR. JACOBO VARELA ACEVEDO, MINISTER OF URUGUAY AT WASHINGTON. 
 
 DR. FLORENCIO ARAGON Y ETCHART, CHAIRMAN OF THE FINANCE COM- 
 MITTEE OF THE URUGUAYAN SENATE. 
 
 Special Representative of the Secretary of the Treasury. 
 
 HON. EUGENE MEYER, MANAGING DIRECTOR OF THE WAR FINANCE 
 
 CORPORATION. 
 
 United /States Members of the Group Committee. 
 
 Harry A. Wheeler, of Illinois, Chairman. 
 Edward Winslow Ames, of New York. 
 William C. Buethe, of Illinois. 
 Ira A. Campbell, of New York. 
 Paul A. Draper, of Massachusetts. 
 Albert W. Harris, of Illinois. 
 Samuel M. Lindsay, of New York. 
 R.JL. McKellar, of Kentucky. 
 Clarence D. Randall, of New York. 
 Welding Ring, of New York. 
 James J. Shirley, of New York. 
 Glen L. Swiggett. of Tennessee. 
 F. H. Taylor, of New York. 
 Eugene P. Thomas, of New York. 
 R. E. Tomlinson, of New York. 
 
 Alfredo L. Demorest, of the District of Columbia, Secretary. 
 38 
 
VENEZUELA. 
 
 CONFERENCE COMMITTEE. 
 
 Official Delegation. 
 
 DR. VICENTE LECUNA, PRESIDENT OF THE INTERNATIONAL HIGH COM- 
 MISSION, NATIONAL SECTION OF VENEZUELA. 
 MR. ENRIQUE PEREZ DUPUY. 
 DR. NICOLAS VELOZ GOITICOA. 
 
 Special Guest of the Secretary of the Treasury. 
 THE MINISTER OF VENEZUELA AT WASHINGTON. 
 
 Special Representative of the Secretary of the Treasury. 
 
 HON. J. B. McDouGAL, GOVERNOR OF THE FEDERAL RESERVE BANK OF 
 
 CHICAGO. 
 
 United States Members of the Group Committee. 
 
 Robert H. Patchin, of New York, Chairman. 
 A. C. Bedford, of New York. 
 James B. Bonner, of the District of Columbia. 
 E. G. Buckland, of Connecticut. 
 M. J. Caples, of Maryland. 
 John T. Dismukes, of Florida. 
 Charles E. Falconer, of Maryland. 
 George W. Hyde, of Massachusetts. 
 John H. Latane, of Maryland. 
 Severo Mallet-Prevost, of New York. 
 John V. Noel, of New York. 
 Robert A. Shaw, of New York. 
 S. Davies Warfield, of Maryland. 
 William P. Wilson, of Pennsylvania. 
 Clarence H. Haring, of Connecticut, Secretary. 
 
PROGRAM AND SUMMARY OF THE GENERAL SESSIONS 
 OF THE CONFERENCE. 
 
 TOPICS AGREED UPON BY THE GOVERNMENTS OF THE AMERICAN REPUBLICS 
 FOR SUBMISSION TO THE SECOND PAN AMERICAN FINANCIAL CONFER- 
 ENCE. 
 
 /. The effect of the war on the commerce and industry, manufactur- 
 ing and mining, agriculture and public utilities of the Republics of 
 the American Continent. 
 
 1. To what extent has the war stimulated the development of 
 domestic resources, so as to create greater economic independence? 
 To what extent has it delayed this development ? 
 
 2. Urgent present public financial needs 
 
 (a) For the liquidation or funding of existing financial obli- 
 
 gations. 
 
 (b) For the further development of public enterprises. 
 
 3. Urgent present financial needs in commerce and industry. 
 
 //. How can required capital and credit facilities best be provided f 
 
 1. To what extent can these requirements be met by domestic 
 capital? 
 
 2. To what extent is foreign capital required ? 
 
 (a) The extension of improved banking facilities, through the 
 establishment of branches and by other means. 
 
 (>) The wider use of acceptances and other means of extend- 
 ing credit. 
 
 (c) The creation of a market for the distribution of foreign 
 
 government and corporate securities. The establish- 
 ment of investment companies. 
 
 (d) The direct investment of capital in foreign enterprises y 
 
 industrial and commercial, and in the construction of 
 public works. 
 
 ///. National credit and the factors affecting it. 
 
 1. Extent and nature of the public debt. 
 
 2. The national fiscal system, with special reference to sources and 
 adequacy of revenues. 
 
 40 
 
GENERAL SESSIONS. 41 
 
 3. The relation of the fiscal system to currency reform. 
 
 4. What guaranties and remedies are provided by law in the case 
 of provincial and municipal loans? 
 
 IV. The effect of the war on transportation facilities Requirements 
 
 of the present and immediate future. 
 
 1. To what extent has the war affected transportation facilities on 
 land and sea ? 
 
 2. Laws and regulations to provide for the encouragement of ship- 
 ping facilities between the American Republics. 
 
 3. The removal of obstacles in the way of transportation facilities, 
 through adequate provision for lighthouses and other aids to naviga- 
 tion and through agreements as to harbor and quarantine regulations, 
 entrance and clearance, docking, lading, and unlading facilities. 
 
 4. Freight rates. 
 
 5. Maritime insurance facilities. 
 
 V. Measures to facilitate commercial intercourse among the American 
 
 Republics. 
 
 1. The convention concerning commercial travelers. 
 
 2. The convention to establish an international gold clearance fund. 
 
 3. Parcel-post facilities and lower postal rates. 
 
 4. Cable facilities ; wireless telegraphy. 
 
 5. The establishment of free ports. 
 
 6. Improved warehouse facilities. 
 
 VI. The development of uniformity of legislation in relation to 
 
 1. Uniform customs regulations ; the prevention of the undervalua- 
 tion of merchandise in export and import declarations. 
 
 2. Bills of exchange and checks; bills of lading and warehouse 
 receipts. 
 
 3. Contracts regarding the consignment of merchandise in foreign 
 trade and the conditions of acceptance or rejection of merchandise. 
 
 4. Commercial arbitration; agreements between the chambers of 
 commerce of the American Republics, with special reference to the 
 agreements between the chambers of commerce of Buenos Aires, 
 Montevideo, and Guayaquil and the Chamber of Commerce of the 
 United States. 
 
 5. Patent and copyright law ; the protection of trade-marks, espe- 
 cially through the establishment of the International Trade-Mark 
 Bureaus at Habana and Rio de Janeiro. 
 
 6. Uniform admiralty law. 
 
JOURNAL OF THE SESSIONS. 
 
 PRELIMINARY MEETING OF THE OFFICIAL DELEGATES. 
 
 An informal meeting of the official delegates was called to order 
 at 3 p. m. Saturday, January 17, by the Secretary of the Treasury of 
 the United States in the Hall of the Americas of the Pan American 
 Building. 
 
 On motion of Dr. Japobo Yarela Acevedo (Uruguay), the 
 Secretary of the Treasury of the United States, L. S. Howe, C. E. 
 McGuire, and G. A. Sherwell were elected presiding officer, secre- 
 tary general and assistant secretaries general, respectively, of the 
 conference. 
 
 The presiding officer announced the appointment of the Hon. 
 W. G. McAdoo to preside at the second general session, to take 
 place on January 20, 1920, at 8.30 p. m. 
 
 Dr. L. Toledo Herrarte (Guatemala) moved that, for the selection 
 of vice chairmen to preside at the first, third, fourth, and fifth 
 general sessions of the conference, the American countries be divided 
 into four groups, the first to include the Caribbean Republics; the 
 second, the South American countries of the east coast, and Colombia, 
 Venezuela, and Paraguaj 7 ; the third, the South American countries 
 of the Pacific coast, including Bolivia ; and the fourth, Mexico and 
 the Central American countries. The vice presidents were chosen 
 by ballot as follows: For the Caribbean countries, Cuba; for 
 the South American countries of the Atlantic coast, Uruguay; for 
 the South American countries of the Pacific coast, Ecuador ; and for 
 Mexico and the Central American countries, Honduras. A further 
 ballot determined the order in which the chairmen of these four 
 delegations were to preside at the general sessions: Cuba, first; 
 Uruguay, third ; Ecuador, fourth ; and Honduras, fifth. 
 
 It was unanimously agreed that at the opening session the chairmen 
 of all delegations would briefly reply to the address of welcome. In 
 the general sessions papers were to be read and free discussion there- 
 after invited, previous notice of an intention to discuss a paper being 
 required and a time limit of 10 minutes imposed. Those taking the 
 floor without previous notice were to be limited to 5 minutes. 
 
 The secretary general announced that the Federal Reserve Bank 
 of New York had extended an invitation to the official delegates to 
 visit the bank on the morning of January 27. 
 
 The meeting was adjourned at 4.30 p. m. 
 42 
 
GENERAL SESSIONS. 43 
 
 OPENING SESSION, MONDAY, JANUARY 19, 1920. 
 
 The conference was called to order at 10.30 a. m. by the Hon. 
 Carter Glass, Secretary of the Treasury of the United States and 
 president of the conference. He delivered a message of welcome 
 from the President of the United States, in which it was declared 
 that the Republics of the American Continent should, in the troubled 
 times of world reconstruction, seek no selfish purpose, but continue 
 to be guided by the desire to serve one another and the world. To 
 this message he added his personal greetings, and stated briefly the 
 purpose of the conference, asserting that the great cause of conti- 
 nental cooperation made necessary the personal meeting of those 
 high in the financial and economic affairs of their country so as to 
 know r each others' views. 
 
 The Hon. Robert Lansing, Secretary of State of the United States, 
 expressed his personal gratification and the satisfaction of the De- 
 partment of State because of the meeting, and, said that as free 
 peoples, jealous of their rights as nations and individuals, the 
 American Republics could render humanity no greater service than 
 to preserve their lofty ideals untouched by selfish motives. 
 
 The Hon. John Barrett, Director of the Pan American Union, 
 welcomed the delegates on behalf of the Union. 
 
 Responses to the addresses of welcome were then made by each of 
 the foreign delegates in alphapetical order, as follows : 
 
 Argentina Dr. Domingo E. Salaberry. 
 
 Bolivia Dr. Jose Luis Tejada. 
 
 Brazil Dr. Carlos Cesar cle Oliveira Sampaio. 
 
 Chile Dr. Luis Izquierdo. 
 
 Colombia Dr. Tomas Suri Salcedo. 
 
 Cuba Dr. Carlos Manuel de Cespedes. 
 
 Dominican Republic Dr. Luis Galvan. 
 " Ecuador Dr. Rafael H. Elizalde. 
 
 Guatemala Dr. Luis Toledo Herrarte.. 
 
 Haiti M. Fleury Fequiere. 
 
 Honduras Gen. Juan E. Paredes. 
 
 Mexico Dr. Enrique Martinez Sobral. 
 
 Nicaragua Dr. Octaviano Cesar. 
 
 Panama Mr. Jose Agustin Arango. 
 
 Paraguay Dr. Eusebio Ayala. 
 
 Peru Dr. Fernando C. Fuchs. 
 
 El Salvador Dr. Jose Esperanza Suay. 
 
 Uruguay Dr. Ricardo Vecino. 
 
 Venezuela Dr. Vicente Lecuna. 
 
 All the responses expressed hope for the speedy recovery of the 
 President of the United States, and many delegates in their speeches 
 
44 SECOND PAN AMERICAN FINANCIAL CONFERENCE. 
 
 placed stress on the results of the work of the First Pan American 
 Financial Conference. 
 
 The chairman then announced the membership of the committee 
 on resolutions and the committee on transportation, whereupon, at 
 1.30 p. m. the conference took a recess. 
 
 FIRST GENERAL SESSION, MONDAY, JANUARY 19, 1920. 
 
 The conference was; called to order at 9 o'clock p. m. by the lion. 
 Carter Glass, who turned the gavel over to Dr. Carlos Manuel de 
 Cespedes, minister of Cuba at Washington and chairman of the 
 Cuban delegation. The speeches of this session were devoted to the 
 discussion of "The improvement of ocean and land transportation 
 facilities." The Hon. John Barton Payne, chairman of the United 
 States Shipping Board, outlined the activities of the Shipping Board 
 and its shipping program and promised adequate passenger and 
 freight service between the United States and the Latin-American 
 Republics. This formal address was followed by brief discussions 
 of the transportation problem by Dr. Ricardo C. Aldao, Argentina ; 
 Dr. Ricardo Martinez Vargas, Bolivia ; Dr. Pomponio Guzman, Co- 
 lombia; Dr. Alberto Edwards, Chile; Dr. Luis Felipe Borja, Ecua- 
 dor; and Mr. Enrique Perez Dupuy, Venezuela. The conference 
 recessed at 10.50 p. m. 
 
 SECOND GENERAL SESSION, TUESDAY, JANUARY 20, 1920. 
 
 The session was called to order at 9.10 p. m. by the Hon. William 
 G. McAdoo, former Secretary of the Treasury of the United States, 
 who, after extending his greetings to the assembly, dwelt upon the 
 great duties and responsibilities now imposed on the countries of 
 this hemisphere as a result of the war, which had more closely united 
 them. He pointed out that this closer union, political as well as 
 economic, was in some measure due to the practical results of the 
 First Pan American Financial Conference, effected through the sym- 
 pathetic and energetic work of the International High Commission, 
 which was created by that conference. After referring to the strides 
 which had been made by the several American Republics in the ex- 
 pansion of their foreign commerce and shipping, he introduced the 
 Hon. John Bassett Moore, the vice president of the central executive 
 council of the International High Commission, who outlined the 
 work accomplished by the commission since its creation in 1915. 
 Briefly referring to the organization and constituency of the com- 
 mission, Mr. Moore enumerated the subjects taken up and the results 
 accomplished by the commission. He regarded its establishment as 
 a matter of great practical significance. It had supplied the need 
 felt by numerous scientific, educational, and economic Pan American 
 conferences of a permanent body to carry out their resolutions. 
 

 GENERAL SESSIONS. 4$ 
 
 THIRD GENERAL SESSION, THURSDAY, JANUARY 22, 1920. 
 
 The conference was called to order at 10 a. m. by the presiding 
 officer, Dr. Kaf ael H. Elizalde, chairman of the delegation of Ecuador 
 and minister of Ecuador at Washington. The secretary general an- 
 nounced the dispatch by the President of the United States of mes- 
 sages to the Presidents of the other American Republics felicitating 
 them upon the inauguration" of the conference. 
 
 The secretary general then announced that most of the group 
 committee reports had been received by him. These reports had 
 been drafted after having been given serious attention for sev- 
 eral days on the part of the members of the official delegations and 
 the groups representing the United States, and were respectively 
 signed by the chairmen and vice chairmen of the conference com- 
 mittees, the chairmen being the heads of delegations and the vice 
 chairmen being the persons selected by the Secretary of the Treasury 
 to act as chairmen of the group committees. 
 
 The secretary general also recorded the fact that the report of the 
 committee on communications had been signed by the Hon. J. W. 
 Alexander, Secretary of Commerce and chairman of the committee, 
 and submitted to the chair. 
 
 All the reports of the group committees and committee on com- 
 munications were, by direction of the chair, referred to the committee 
 on resolutions for the preparation of the general recommendations 
 of the conference. 
 
 The Hon. Huston Thompson, a member of the Federal Trade Com- 
 mission of the United States, then delivered an address on the means 
 of preventing unfair competition in foreign 'trade. Commissioner 
 Thompson, taking as his text the provisions in Public Act 126 of the 
 Sixty-fifth Congress (the " Webb-Pomerene " Act) , conferring juris- 
 diction on the Federal Trade Commission in cases of unfair com- 
 petition outside the jurisdiction of the United States, devoted his 
 attention to the more important types of unfair competition and sug- 
 gested an international commission to deal with this matter. 
 
 Mr. Thompson was followed by Mr. Luis Zuberbuhler. Mr. Zuber- 
 buhler declared that the expansion of foreign trade should be on a 
 permanent and stable basis, inasmuch as sound and enduring com- 
 mercial ties can exist only when the buyer and the seller fully under- 
 stand the needs of each other. The grasp of conditions in other coun- 
 tries can come only through long-continued commercial intercourse. 
 He pointed out that there is no greater stimulus to foreign trade than 
 the constant reinforcement of capital from the country which de- 
 sires that trade, and he showed how the investments of Great 
 Britain had proved a bulwark to her trade in Latin America. 
 "The only kind of trade that is capable of effective and sufficient 
 
46 SECOND PAX AMKRK'AX FiXAXVIAL CON FKRKXCE. 
 
 development," he said, " is that which rests on the investment of 
 capital in the enterprises which are fundamental to the progress of 
 the Nation. It is necessary, in consequence, to banish any attitude 
 of mind which looks upon the consuming market as something merely 
 incidental and occasional in character and suitable for the inexpensive 
 disposition of any surplus produced originally to meet the require- 
 ments and tastes of the domestic market." Dr. Zuberbuhler con- 
 tinued with reference to the Webb law, to the fundamental theory 
 of which he took exception, in that it favored combinations of capital 
 for foreign trade in a guise regarded as illegal in domestic trade. 
 
 An address was next delivered by Dr. Victor Eobles, a member of 
 the delegation of Chile, a member of the House of Deputies of that 
 Republic, and a former member of its cabinet. Dr. Eobles outlined 
 the situation in his country in respect of nitrate, coal, and agricul- 
 tural production, indicating in a convincing manner how safe a field 
 for investment was presented in Chile, a country with a public debt 
 of but 32,000,000 sterling. He pointed out how rapidly the prices 
 of the products of Chile had increased from 1914 to 1919, and the 
 multiform effects produced in the economic life of his country. He 
 concluded his detailed survey of the Chilean economic situation with 
 the expression, however, that the American Republics should strive 
 to make concessions mutually advantageous for the strengthening of 
 the friendship and the more prosperous development of the commer- 
 cial relations between the several countries. " Thus, happily joining 
 reciprocal guarantees and concessions, interests, and even affections, 
 the spirit of Pan Americanism will become a lasting and attractive 
 reality." 
 
 The session adjourned at 12.25 p. m. 
 
 FOURTH GENERAL SESSION, THURSDAY, JANUARY 22, 1920. 
 
 The conference convened at 3.35 p. m., Secretary Glass in the 
 chair. In accordance with the arrangement reached in the prelimi- 
 nary meeting held on January 17, the presidency of the conference 
 for this session devolved upon His Excellency the Minister of Fi- 
 nance of Uruguay, Dr. Ricardo Vecino, who, at the invitation of the 
 Secretary of the Treasury, took the chair. 
 
 Upon the conclusion of routine business submitted by the secre- 
 tary general, the Hon. Andrew J. Peters, a member of the United 
 States section of the commission, and mayor of Boston, addressed 
 the conference briefly, extending the welcome of that city to such 
 delegates of the conference as might find it possible to visit it. 
 
 The Hon. Paul M. Warburg, former vice governor of the Federal 
 Reserve Board, a member of the United States section of the Inter- 
 national High Commission, and vice chairman of the conference com- 
 
GENERAL SESSIONS. 47 
 
 mittee for Chile, then delivered an address on " Fiscal and Currency 
 Standards as the Future Measure of the Credit of Nations." 
 
 Particular emphasis was laid by Mr. Warburg in this important 
 address on several topics of interest to the conference. 
 
 While the theory of banking is the same to-day as it was in the past, in 
 practice its most fundamental feature has been almost universally aban- 
 doned at this time. 
 
 The essential characteristic of ante-bellum banking in leading countries- 
 was that their paper circulation and their deposit liabilities were protected 
 by, and therefore kept in a certain relation to, large gold reserves assembled 
 in their central banks. These central institutions, in turn, could strengthen 
 themselves by drawing on the floating gold supply carried in the pockets of 
 the people and in the vaults of the banks, or by collecting their holdings of 
 other nations' gold obligations. 
 
 A gold country repudiating its obligation to pay in gold would have been 
 deemed a bankrupt, and a country permitting the existence of a substantial 
 gold premium, be it domestic or in the form of an excessive discount on its 
 foreign exchanges, would have been considered as being headed for insolv- 
 ency, a condition which would have caused widespread alarm. 
 
 The fear not to be able to fulfill their gold obligations, the wish and will, 
 at all hazards, to ward off any such catastrophe, was the strongest direct- 
 ing force arid regulator, not only of the financial, but even of the economic 
 policies of such countries. Rather than to expose themselves to the danger 
 of a suspension of gold payments, they would resort to such weapons as 
 high discount rates, high import duties or taxes, the export premium, bor- 
 rowing in foreign markets on even onerous terms, or to any other means of 
 counteracting demands caused by an overwhelmingly adverse trade balance. 
 
 The war brought about a complete reversal of these doctrines and tra- 
 ditions. 
 
 The danger of internal and external gold demands thus eliminated, the 
 protection of high interest rates became unnecessary and almost all belliger- 
 ent countries embarked upon an era of Government finance based upon low 
 interest rates born of inflation. 
 
 This enabled the countries to procure the domestic goods and services 
 needed at a cheap price for money, but at high prices for the things re- 
 quired people imagining that they were escaping taxation when they were 
 paying it in its most drastic and most inexorable forYn, by the depreciation 
 of money. 
 
 The belief is entertained by some that as a solution of our difficulties 
 we are likely to abandon gold as the future means of ultimate settlement 
 of international balances. I do not believe that the world will enjoy fairly 
 stable standards of currency and credit until it returns to the observance 
 of approximately the same principles of banking and finance as prevailed 
 before the war. 
 
 That does not mean that I foresee that antebellum exchange parities 
 will generally be reestablished. Indeed, I hold the view that quite a number 
 of countries will never regain their previous exchange levels. Their power 
 to reclaim all or in part the shrinkage of their standards will depend upon 
 their ability to produce and to save, and upon the measure of permanent 
 depreciation sustained during the war, not only through a decrease of the 
 value of their property, but also through the increase of their national 
 indebtedness. But whatever the level they may be able to recover, ulti- 
 
48 SECOND PAN AMERICAN FINANCIAL CONFERENCE. 
 
 mutely it will be to their vital interest once more to fasten it to a definite 
 gold relation and to reestablish a stable exchange, fluctuating between the 
 maxima and minima of gold parities, without which a country's trade and 
 growth will remain subjected to a fatal handicap. (We may expect some 
 countries to aim for a direct return to a free gold standard, while others 
 may have to choose the indirect route of a gold exchange standard.) 
 
 Let us bear in mind, however, that the more perfect the machinery of 
 credit, the more insignificant becomes the necessity of settling in actual 
 gold. 
 
 If Governments adopt a rigid policy of preventing the further issue of 
 Government securities and money for the purpose of covering current defi- 
 ciencies, they will take the first and most effective step in combating the 
 decrease of production, the rise of prices, and the fall of exchanges. If 
 they will not or can not adopt such a course, they are headed for insolvency 
 and social and economic disruption. 
 
 When central bank rates are thus once more effective and the foreign 
 credit of a country has been restored, the moment will be at hand when the 
 resumption of gold payments may be considered, and with that the stabili- 
 zation of foreign exchanges. Whenever that point is reached, a country 
 may be deemed to have completed its economic convalescence. The first 
 step in this direction must be the establishment of honestly balanced 
 budgets. 
 
 Side by side, however, with the determination of the Government to stop 
 the further increase of Government debt must go an equally firm policy on 
 the part of the note-issuing banks to arrest a further expansion of cir- 
 culation. 
 
 Through the depreciation of the purchasing power of money the value 
 of the return from investments (that is, from savings of the past) has 
 been cut in two in countries with the soundest economic conditions, and 
 in those most adversely affected it has been decimated, if not practically 
 wiped out. The distribution of income in all countries has therefore been 
 drastically modified. In the aggregate, the share of the farmer and the 
 wage-earner has , been phenomenally increased at the expense of those 
 who lived on fixed income from savings of the past. Extravagance must 
 not only be curbed on top. but just as much on the part of the masses 
 receiving the bulk of the national income, and, in the aggregate, doing 
 the largest share of the country's spending. 
 
 For the vast number of American consumers, a recession of prices is 
 of infinitely greater importance than boosted exports sold at high prices 
 to purchasers whose natural limit of credit has been fairly exhausted. 
 
 For foreign countries buying our goods, a decline in our prices would 
 mean either a corresponding drop in their own prices or a recovery in their 
 exchanges, or a combination of both. In any case, we would serve them 
 better if we sold them at a lower price the minimum that they must have 
 than if we furnished tlieiu on credit, and at high prices, the maximum 
 they might take. 
 
 After five years of suffering and sacrifices, the masses at present are 
 unruly, self-willed, and unreasonable. They are unwilling to submit to 
 irksome Government interference or drastic burdens of taxation. The 
 lending countries, by insisting on the adoption of a balanced budget policy 
 on the pan of borrowing countries asking for new loans., and by reducing 
 such credits to ilie very minimum necessary, would a<^ist their debtors to 
 choose a safe course, v/hich. without such outside iutluence. their Govern- 
 ments miirlit not ahvays be able to follow. 
 
GENERAL SESSIONS. 49 
 
 Except where plainly altruistic motives must thus exercise a determining 
 influence, I believe that the time is near at hand when international bank- 
 ers, considering new loans, will apply the strictest principles not only with 
 respect to budgeting, but also with regard to the urgency of applications 
 and the purposes involved. As it will be every citizen's patriotic duty to 
 accumulate savings, so the aggregate gathered for investment will have 
 to be looked upon as a sacred fund belonging to the Nation, to be employed 
 only where it will do the greatest possible good. World demands, in the 
 near future, will far out-distance world savings and if it were possibl& 
 nothing would be more timely than a " world priority list," regulating the 
 use of new capital. These views, I fear, do not sound very encouraging 
 to countries of our hemisphere whose future largely depends upon new 
 development. Happily, however, several of them are in the class of lend- 
 ing rather than borrowing countries, and quite a number, through the 
 emergencies of the war, have been taught to develop their resources and 
 new industries and have made admirable progress in the direction of 
 greater economic and financial independence. 
 
 My own belief is that capital in the old world will find so vast a field 
 in work of reconstruction and colonization in " darkest Europe " that it 
 will not be able to devote itself as liberally to the development of the 
 countries of tlrs hemisphere as it did in the past. The three Americas will, 
 therefore, be drawn together in a commercial and financial union of grow- 
 ing strength and intimacy. 
 
 The next formal address was delivered by the Hon. Medill Mc- 
 Cormick, a Member of the United States Senate, who prefaced his 
 address, as Mr. Warburg had concluded his, with words of welcome 
 in Spanish to the delegates from the other countries. Senator Mc- 
 Cormick was concerned primarily with the budget system, into the 
 need of which he went in great detail. 
 
 He traced the system of the movement for budgetary legislation 
 in the United States down to the time when it has assumed national 
 proportions, transcending partisan lines. He outlined briefly the 
 plans for budgetary reform in tlie United States, then under consid- 
 eration in Congress, indicating in an illuminating manner the grave 
 defects from which the fiscal system of the United States suffers be- 
 cause of its failure to devise a budgetary procedure. He discussed 
 as well the subject of audit control and cited the practice in some of 
 the other American countries. 
 
 Senator McCormick was followed by Dr. Virgilio Rodriguez 
 Beteta, of the delegation of Guatemala, who eloquently set forth how 
 profound was the feeling of friendship on the part of the other 
 countries toward the United States because of the sympathy of the 
 people and Government of the latter country toward the other na- 
 tions in their struggle for independence and national development. 
 Dr. Rodriguez Beteta indicated that Guatemala was planning the 
 establishment of a bank of issue upon a sound basis, such as might 
 be calculated to stabilize conditions of exchange and to pave the way 
 for the foundation of a national agricultural mortgage bank. Thus 
 1497021 4 
 
50 SECOND PAN AMERICAN FINANCIAL CONFERENCE. 
 
 Guatemala would be in a position to take care of her indebtedness, 
 to establish her currency on a sound basis, and to promote vigorously 
 the development of her natural resources. . 
 
 A detailed survey of the problem of national credit was made 
 by Dr. Florencio Aragon y Etchart, a senator of Uruguay. Dr. 
 Arjigon y Etchart took as his text a statement of Mr. Warburg's, to 
 the effect that the budgetary law of a country is one of the most pre- 
 cise indications of the financial policy which it follows. He quoted 
 the eminent Argentine economist, Terry, to the effect that in ord4r 
 to know well the financial life of a nation, one has only to study the 
 pages of its budget. " The taxation system existing in some of the 
 countries of South America is certainly not one based on scientific 
 principles of economics, nor one justly conceived with respect to its 
 incidence on the taxpayer. It is a procedure formed in the inade- 
 quate mold of the old-time systems of taxation, resting chiefly upon 
 customs duties and analogous taxation, constituting the principal 
 part of the national revenue. This type of taxation offers no resist- 
 ance to the slightest domestic commotion or to the effects of an inter- 
 national crisis or conflicts of other countries. When such an event 
 occurs the nations of South America which enjoy the best of credit 
 find it difficult to resist this convulsion and settle the difficulties 
 ensuing upon financial disturbance in the world. Customs revenues 
 shrink the moment difficulties arise in any part of the world, con- 
 sumption is reduced, and a period of retrenchment in expenditures 
 sets in." Senator Aragon then entered upon a careful analysis of the 
 means of reforming the taxation systems of the Republics of America. 
 In speaking of the difficulties of securing funds to meet the frequently 
 recurring deficits, he pointed out that customs duties had already 
 reached a maximum in most of the American Republics, while re- 
 course to money lenders, whether domestic or foreign, was bound to 
 lead to a discouraging situation. 
 
 " The pessimism with which the bankers examine the resources of 
 the country usually leads them to be more exacting in their condi- 
 tions. If they grant loans it is upon conditions almost usurious in 
 character and incompatible with the given credit of the country 
 often an interest of 8 or 9 per cent on securities sold to syndicates at 
 79 or 80. The reform of the system of taxation on a more equitable 
 basis is precisely the end toward which the countries of America 
 should strive, if they wish, and, of course, there is no possibility of 
 doubting that they wish, to reinforce their economic capactiy and 
 strengthen their financial activity." To the income tax, Senator 
 Aragon devoted much attention, stating that it is an equitable means 
 of relieving those of modest resources from the burden of many 
 onerous indirect taxes, while it furnishes the Government with a 
 ready measure of the economic progress of the country. He showed 
 
GENERAL SESSIONS. 51 
 
 his intimate acquaintance with the history of taxation in the United 
 States, and, in closing, dwelt briefly upon the importance of mone- 
 tary reform as an element in strengthening national credit. The 
 ideal to be maintained at all costs for the strengthening of public 
 credit is the establishment of the gold standard, not merely in name 
 but in fact, having by its side the bank note, convertible on demand, 
 and resting squarely on public confidence. The bank of the Republic 
 of Uruguay has a circulation of 55,000,000 pesos, resting on a gold 
 reserve of 75 per cent, which has at times even approximated 83 per 
 cent. The notes of this bank circulate in Uruguay like gold itself. 
 The session adjourned at 5.30 p. m. 
 
 FIFTH GENERAL SESSION, FRIDAY, JANUARY 23, 1920. 
 
 The conference assembled at 11 o'clock, with Gen. Juan E. Paredes, 
 chairman of the delegation of Honduras, in the chair. Upon the 
 conclusion of the routine business of the morning session, necessarily 
 extensive because of the fact that this was the last session of the 
 conference, the formal address on the " Problems of the UnitedStates 
 as a Creditor Nation," was delivered by the Hon. W. G. P. Harding, 
 governor of the Federal Reserve Board. 
 
 We in the United States, while accustomed to maintain a favorable trade 
 balance through a moderate excess of exports over imports, had come to 
 look upon European capital as a natural and necessary factor in our de- 
 velopment and to accept with complacency the fact that we \vere a debtor 
 and not a creditor nation. Being absorbed primarily in our own affairs, 
 we were satisfied with a minor position in financing the commerce of the 
 world. While we had, of course, extensive trade relations with all civil- 
 ized countries, we undertook to finance only a comparatively small part 
 of our exporting and importing transactions, leaving the greater part of 
 it to European bankers and acceptance houses. Consequently, most of 
 our trade with our sister republics to the south was financed by means 
 of credits opened in London and other Old World centers. Our participa- 
 tion in foreign financing was confined principally to dealings in short 
 bills, and our fixed investments, represented by holdings in securities of 
 foreign Governments and municipalities and by stocks and bonds of for- 
 eign industries, were comparatively small ; in fact, we had become so de- 
 pendent upon foreign capital that up to a few years ago it was the cus- 
 tom to finance our growing crops by means of finance bills drawn in antici- 
 pation of seasonal exports of agricultural stapled in the fall of the year. 
 
 The financial dependence upon Europe which existed in the United States 
 obtained, perhaps, in a greater proportionate degree in South American 
 countries, and for this reason the outbreak of the World War in August, 
 1914, caused a jar which shook the American Continents from Alaska to 
 Tierra del Fuego. 
 
 Five years ago the United States stood as a debtor on the world's balance 
 sheet to the extent of, perhaps, five billions of dollars, part of which was 
 represented by loans of short maturities and the greater part by American 
 securities held abroad. * * * 
 
52 SECOND PAX AMERICAN FINANCIAL, CONFERENCE. 
 
 Early in the year 1917 it became evident that the United States was no 
 longer a debtor nation but was a creditor nation to the extent of, perhaps, 
 two billions of dollars. * * * 
 
 Because of the great demand upon capital in this country, we must not 
 lose sight of the necessity for restricting our foreign credits to essential 
 purposes. It is not to be expected, for the present at least that loans 
 and investments abroad will be made because of attractive rates of in- 
 terest or favorable prospects for profit; they will be made, primarily, in 
 the hope of restoring more normal conditions in the war-stricken coun- 
 tries by enabling their populations to get back to productive work, and 
 with the incentive also of opening foreign markets for those commodities 
 of which we produce an exportable surplus. 
 
 It is expected that corporations organized under the Edge Act will make 
 loans to business men in Europe, and take their obligations in the usual 
 form. It may be that they will require the guarantee of European Govern- 
 ments and of municipalities and that the beneficiaries on the other side 
 will be required to provide a fair cash margin. 
 
 The loans abroad should be made on terms sufficiently long as to enable 
 repayment to be made out of credits growing out of European exports. 
 Because of adverse exchange rates finance bills maturing before the pro- 
 ductive capacity of European countries has been restored can not be effec- 
 tive. A 12 months' credit to a French merchant calling for repayment at 
 maturity in dollars would involve heavy loss to the borrower unless he 
 were able to provide himself with funds in this country by means of the 
 export to America or elsewhere of some commodity produced in France. It 
 is evident, therefore, that credits must be sufficiently long to enable bor- 
 rowers to repay them out of the proceeds of goods produced in and exported 
 from the borrowing country. * * * European nationals can produce 
 many things which we either do not produce at all or can not produce as 
 cheaply as they can, or it may be that they can produce things needed in 
 South American countries or in the Far East, and as American importers 
 have constant dealings with South American and oriental countries it 
 follows that European credits available in China and Japan, Argentina, 
 Chile, Brazil, and other Latin American nations will be just as effective 
 in liquidating European obligations in the United States as direct European 
 credits in New York would be. 
 
 Governor Harding was followed by a member of the delegation 
 of Mexico, Dr. Enrique Martinez Sobral, who briefly reviewed the 
 rapidity with which his. country was recovering from the unfortu- 
 nate consequences of civil war, and demonstrating its ability to avail 
 itself successfully of its very great natural resources and prosperity. 
 
 Dr. Luis Tejada, head of the delegation of Bolivia, member of the 
 congress and former minister of finance, of that country, next ad- 
 dressed the conference, speaking in English as had Dr. Martinez 
 Sobral. He outlined to the congress a plan for the extension of 
 financial aid to Europe by the United States through the purchase 
 by the latter country of Government securities of the Republics of 
 Central and South America now held in Europe. Both halves of 
 the hemisphere were in accord as to the need of aiding Europe, in- 
 asmuch as the problems of the world called for the reconstruction of 
 
GENERAL SESSIONS. 53 
 
 Europe as a prerequisite to their own solution. Direct loans from 
 the countries of this hemisphere to the countries of the older world 
 w T ere difficult, and the problem was constantly becoming more com- 
 plicated by the decline in exchange. "If the United States decides to 
 grant assistance to Europe, let it do so by allowing Latin America 
 to pay its obligations to the countries of Europe. This would allow 
 Latin America to take advantage of exchange conditions, while it 
 would do no harm to Europe, inasmuch as the exchange situation 
 must be adjusted before her reconstruction can begin. No advantage 
 would accrue to Europe from her retention of Latin American obli- 
 gations, * * * while on the other hand a market would be created 
 for European securities, inasmuch as the countries of Central and 
 South America when discharging their own obligations would pur- 
 chase those of Europe." 
 
 The fourth address of the morning was delivered by Dr. Carlos 
 Cesar de Oliveira Sampaio, chairman of the Brazilian delegation. 
 Dr. Sampaio discussed the problems of Brazil as a debtor nation. 
 After outlining the effect of the war on Brazil, he emphasized his 
 belief that the other portions of this hemisphere must necessarily 
 remain the chief field for the display of enterprise from the United 
 States. " The program of the Brazilian Government is to reduce 
 public expense, improve the fiscal system, bring about a balance of 
 its budget, contract loans only for productive purposes, reorganize 
 the banking system of the country* so as to make its currency more 
 elastic, and abandon forever the process of issuing inconvertible cur- 
 rency. We expect gradually to establish a safe basis for our mone- 
 tary system and for the improvement of our national finances. We 
 hope to increase production and reduce imports, to stabilize exchange, 
 to pay the interest on our loans, and to fill the gaps left by recurring 
 deficits. The prosperity of a nation is related to its capacity for 
 production, which depends upon land, labor, and capital. Land we 
 have in abundance. Two-thirds of our territory we have not yet 
 explored, having yet to follow the example of the great American 
 who discovered the Roosevelt River in northern Brazil. Of capital 
 we have not enough and we are obliged to look to other countries. 
 We have not sufficient man power, but men will come to us, if for 
 no other purpose than to escape from the troubled situation in 
 Europe. What we wish to see now is a greater number of citizens 
 of the United States at work in Brazil with their own money, just 
 as the Chicago packers are developing our meat industries and the 
 smelting interests are trying to bring about the same result with 
 iron ore and manganese." Dr. Sampaio referred to the blow to the 
 rubber industry of Brazil through the creation of new sources of 
 that commodity in other parts of the world, and expressed the hope 
 that the rubber industry would again be prosperous in his country. 
 
54 SECOND PAN AMERICAN FINANCIAL CONFERENCE. 
 
 At the conclusion of the remarks of Dr. Sampaio, the Hon. John 
 Bassett Moore, chairman of the committee on resolutions, submitted 
 the report of his committee. 1 The chairman of the committee read 
 the report in full, briefly commenting on those of the resolutions 
 which called for any explanation. The voting on the resolutions of 
 the conference then took place, there being unanimous approval of 
 the resolutions as submitted by the committee, but three countries 
 making reservation to certain resolutions. 2 
 
 The secretary general then submitted his own formal report. 3 
 
 His Excellency, the minister of finance of Argentina, Dr. Domingo 
 E. Salaberry, on behalf of the official delegations and venturing to 
 interpret their feeling, expressed the deep gratitude for the hospi- 
 tality and consideration shown to them, and called upon the assembly 
 to rise as an expression of its consideration for the President of the 
 United States, for whose speedy restoration to good health, he stated, 
 he was confident all the delegates sincerely hoped. 
 
 Unanimous votes of thanks to the Secretary of the Treasury and to 
 the secretary of the conference were adopted. 
 
 The Secretary of the Treasury then took the chair, and, expressing 
 his deep regret that because of illness and the pressure of official 
 duties, he had been deprived of the pleasure of constant contact with 
 the delegates and members of the committees, he stated that he felt 
 entire confidence that the conference could not but cement the bonds 
 of cooperation between the American Republics, and stimulate the 
 desire of all their citizens to unite in the great purpose of being of 
 service to each other, to humanity, and to the world. He then de- 
 clared the sessions of the conference adjourned sine die at 1 p. m. 
 
 On the evening of Saturday, January 24, a banquet was tendered 
 by the Secretary of the Treasury to the delegates in the Hall of the 
 Americas of the Pan American Building, and was attended by the 
 official delegates and the members of the committees. 
 
 In the course of this banquet, the replies of the Presidents of the 
 American Republics to the telegram of the President of the United 
 States were read by the secretary general. 
 
 A rising vote of thanks was extended to the governing board of 
 the Pan American Union for its courtesy and kindness in putting at 
 the disposal of the conference the halls of the building. Toasts were 
 proposed and drunk to the Presidents of the American Republics, 
 and felicitous remarks were made on behalf of the official delegations 
 by His Excellency, the minister of finance of Argentina, and His 
 Excellency, the Mexican ambassador, and on behalf of the United 
 
 1 This will be found in. full on p. 56. 
 
 2 These reservations will be found following the resolutions on p. 15. 
 
 3 This report will be found on p. 12. 
 
GENERAL SESSIONS. 55 
 
 -States by the Hon. Thomas R. Marshall, Vice President of the United 
 States. 
 
 TRIP TO PHILADELPHIA AND NEW YORK OF THE OFFICIAL DELEGATES TO 
 THE SECOND PAN AMERICAN FINANCIAL CONFERENCE. 
 
 On Sunday, January 25, 1920, a number of the offcial delegates to 
 the conference, accompanied by their families and attended by some 
 members of the staff of the conference, proceeded to Philadelphia, 
 where they were received at the station by a committee representing 
 the mayor of the city and the chamber of commerce. A dinner was 
 tendered to them by the Baldwin Locomotive Co. at the hotel in 
 which they were lodged as guests of the Treasury Department, and the 
 following day a portion of the party went to inspect the Baldwin 
 Locomotive Works, while another group visited the New York Ship 
 Building Corporation's plant, where a ship was launched during the 
 visit. Luncheons were tendered at both establishments, and in the 
 evening the parties returned to Philadelphia and preceded to New 
 York. 
 
 On Tuesday, January 27, the delegates visited the Federal Reserve 
 Bank of New York and were shown in detail the system employed in 
 its operation. At the termination of the visit thfe delegates were the 
 guests at luncheon of the directors and officers of the bank at the 
 Bankers Club. Addresses were delivered by Acting Governor Case, 
 Dr. Tejada, Messrs. W. L. Saunders, and A. B. Hepburn. 
 
 On the same evening a banquet wa's given in honor of the delegates 
 by the Pan American Society of the United States at the Waldorf 
 Astoria Hotel. Addresses were delivered by the Hon. John Bassett 
 Moore, president of the society; the former Secretary of the Treas- 
 ury, W. G. McAdoo ; Dr. Ricardo Aldao, Dr. J. G. Schurman, and 
 Dr. L. S. Rowe. 
 
REPORT OF THE COMMITTEE ON RESOLUTIONS. 
 
 The honorable the SECRETARY OF THE TREASURY OF THE UNITED 
 
 STATES. 
 
 SIR : The committee on resolutions designated a special subcommit- 
 tee, composed of John Bassett Moore, Eusebio Ayala, Luis Izquierdo, 
 Luis Toledo Herrarte, John H. Fahey, Frank A. Vanderlip, and Paul 
 M. Warburg, to confer and consider every proposal laid before the 
 committee, either formally or informally, and to draft resolutions 
 and report them to the committee. This subcommittee examined 
 carefully all the conference reports, including the report of the com- 
 mittee on transportation, and also various proposals directly laid be- 
 fore it, and then formulated resolutions which were duly laid before 
 the committee. The latter acted upon the recommendations of the 
 subcommittee and submitted to the conference for adoption the fol- 
 lowing resolutions, in which the members of the committee unani- 
 mously concurred : 
 
 I. Resolved, That, with a view more definitely to indicate 
 the constituency and sphere of work of the International High 
 Commission, the title of that body shall hereafter be "The 
 Inter- American High Commission." 
 
 II. Resolved, That the conference adopts that part of the 
 report of the committee on transportation and communication 
 relating to maritime transportation, and directs its transmis- 
 sion to the United States Shipping Board for consideration and 
 action; and that so far as concerns the subjects of railroad 
 transportation, postal facilities, uniformity of bills of lading,, 
 and wireless, cable, and telegraph communication the report be 
 transmitted to the Inter- American High Commission for suitable 
 action. 
 
 III. Whereas banks, both National and State, in the United 
 States have established branches in various Latin-American 
 countries; and 
 
 Whereas restrictions exist under the laws of various States 
 of the United States which, in effect, prevent the operation of 
 branches of foreign banks within their jurisdiction : 
 
 Therefore we recommend that the legislation in such States 
 be so modified as to permit the establishment of branches of 
 banks of Latin- American countries, under proper regulations,, 
 so as to secure equality of treatment. 
 
 56 
 
REPORT OF COMMITTEE ON RESOLUTIONS. 57 
 
 IV. Resolved, That the Inter-American High Commission be 
 requested to study the question of the possibility of achieving 
 uniformity and relative equality in the laws and regulations 
 governing the organization of corporations and the treatment 
 of foreign corporations in the various American Republics. 
 
 V. Resolved, That the conference recommends the increased 
 use of acceptances for the purpose of financial transactions in- 
 volving the importation and exportation of goods, and hopes 
 that, with the passing of the period of readjustment in which 
 nations are now engaged, the United States will offer con- 
 stantly widening market for the long-term securities of Amer- 
 ican countries. 
 
 VI. Resolved, That the Inter- American High Commission be 
 requested to continue its efforts to bring about the adoption of 
 the plan, recommended at Buenos Aires in 1916, for the estab- 
 lishment of an international gold fund, such plan having already 
 been embodied in a convention which has been adopted by 
 several of the American Republics. 
 
 VII. Resolved, That, steps having heretofore been taken to 
 bring about the adoption by the American countries of a uni- 
 form law in regard to bills of exchange, the conference requests 
 the Inter- American High Commission to bring to the notice 
 of the American Governments the desirability of adopting a 
 uniform law on the subject of checks. 
 
 VIII. Resolved, That, in view of the increase and diversifica- 
 tion of taxes in the various American countries, the Inter- 
 American High Commission be asked to study the question of 
 the best method of avoiding the simultaneous double taxation 
 of individuals and corporations as between such countries. 
 
 IX. Whereas the international bureau, at Habana, for the 
 registration of trade-marks, as provided in the convention 
 adopted by the Fourth International American Conference at 
 Buenos Aires in 1910, has been opened and is in successful oper- 
 ation : 
 
 Resolved, That the conference recommends the early ratifica- 
 tion of that convention by all the American countries that have 
 not so far ratified it, to the end that its provisions may be effec- 
 tive throughout the Americas. 
 
 Meanwhile, it is suggested that, pending the establishment of 
 the international bureau at Rio de Janeiro, consideration be 
 given to the use of the Habana bureau by countries of the south- 
 ern group that have ratified the convention. 
 
 X. Resolved, That the conference recommends the early rati- 
 fication by the American Republics, so far as they have not 
 already ratified it, of the convention adopted by the Interna- 
 
58 SECOND PAX AMERICAN FINANCIAL CONFERENCE. 
 
 tional American Conference, at Buenos Aires, in 1910, concerning 
 patents and copyrights. 
 
 XI. Resolved, That the conference recommends that the Webb 
 law be so amended as to permit American companies, importing 
 or dealing in raw materials produced abroad, to form, under 
 proper governmental regulations, organizations to enable such 
 companies to compete on terms of equality with companies of 
 other countries associated for the conduct of such business. 
 
 XII. Resolved, That the conference recognizes the value of the 
 services of commercial attaches, and strongly urges a substantial 
 extension of the system. 
 
 In making this recommendation the conference intends to ex- 
 press its sense of the importance of appropriate training, lin- 
 guistic and otherwise, for all branches of the foreign service, as 
 a means of developing and facilitating commercial and financial 
 relations. 
 
 XIII. Resolved, That a simultaneous census should be taken 
 in all the American countries at regular intervals, not exceeding 
 10 years, in harmony with the system prevailing in the United 
 States, and that uniformity should be observed in the prepara- 
 tion of statistical works. 
 
 XIV. Resolved, That the conference recommends that the 
 metric system of weights and measures be universally employed, 
 and that, pending the attainment of that end, articles weighed 
 and marked, and shipping documents, prepared according to the 
 system of weights and measures now prevailing in the United 
 States, should be accompanied with statements giving the equiva- 
 lents under the metric system. 
 
 XV. Resolved, That the plan of arbitration of commercial 
 disputes put into effect between the Bolsa de Comercio of Buenos 
 Aires and the United States Chamber of Commerce, and since 
 adopted by the chambers of commerce of several other American 
 countries, should be extended to all the American countries, and 
 that legislation should be adopted wherever it is now lacking for 
 the purpose of incorporating the arbitral settlement of commer- 
 cial disputes into the judicial system, to be carried out under 
 the supervision of the courts. 
 
 XVI. Resolved, That the Inter- American High Commission 
 be requested to study the question of the creation of an inter- 
 American tribunal for the adjustment of questions of a com- 
 mercial or financial nature involving two or more American 
 countries and the determination of such questions on principles 
 of law and equity. 
 
 XVII. Resolved, That it being in the interest of all nations 
 that there should be the widest possible distribution of raw 
 
REPORT OF COMMITTEE ON RESOLUTIONS. 59 
 
 materials, the importation of such materials into any country 
 should not be prevented by prohibitive duties. 
 
 XVIII. Resolved, That it is recommended that the banking 
 interests of the United States study the possibility of financial 
 relief to Europe by repaying Latin- American obligations held 
 in Europe by means of new loans granted in the United States 
 to the respective Latin- American countries. 
 
 With respect to some of the foregoing 18 resolutions a few explana- 
 tory remarks may be made. 
 
 Resolution No. I is intended to change the title of " The Interna- 
 tional High Commission " to " The Inter- American High Commis- 
 sion." Your committee found that in the work of the International 
 High Commission much difficulty and confusion had at times arisen 
 from the fact that the title "International High Commission" did 
 not convey a definite indication either of the constituency of the com- 
 mission or of the sphere within which it carried on its activities. 
 There are so many international high commissions, chiefly with 
 European countries, that a clarification seemed to be desirable. This 
 resolution, it is hoped, will accomplish that end. 
 ' Resolution No. II relates to the report of the committee on trans- 
 portation. The only part of that report which the resolution for- 
 mally adopts is that relating to maritime transportation. The other 
 subjects were so varied and involved so much detail that it was 
 thought better to refer them to the Inter- American High Commission 
 for consideration than to ask the conference, within the time at its 
 disposal, to undertake to follow them through all their ramifications 
 so as to formulate and express definite conclusions. 
 
 Resolution No. IV relates mainly to the treatment of foreign cor- 
 porations and their branches. This is obviously a question of prac- 
 tical concern to all the American countries. 
 
 Resolution No. IX relates to the trade-mark convention adopted 
 at Buenos Aires in 1910. That convention provided for the division 
 of the American countries into two groups a northern and a south- 
 ern with an international bureau of registration for each group, 
 the northern bureau to be at Habana and the southern at Rio de 
 Janeiro ; and in order that each or either of these bureaus should be 
 established it was necessary that two-thirds of the group which it 
 was to serve should ratify the convention. More than two-thirds of 
 the northern group have ratified the convention, and in August, 
 1919, the international bureau at Habana was opened and is now in 
 successful operation. The resolution, adverting to this fact, pur- 
 poses that the conference recommend the early ratification of the 
 convention by all the American Republics that have not as yet rati- 
 fied it, so that its provisions may be effective throughout the Amer- 
 icas. Meanwhile, the resolution suggests that the countries of the 
 
60 SECOND PAX AMERICAN FINANCIAL CONFERENCE. 
 
 southern group that have ratified the convention may, if they so 
 desire, gain the benefits of the convention by using the Habana 
 bureau, to which it is understood that there is no legal or other 
 obstacle. Indeed, the able and efficient director of the Habana 
 bureau, Dr. Mario Diaz Irizar, as appears by his report of December 
 31, 1919, now in the hands of the conference, has from the first been 
 sending notifications of registration to countries in the southern 
 group that have ratified the convention, as well as to countries in 
 the northern group, and has held himself ready to accept any appli- 
 cations for registration that might be sent to him from ratifying 
 countries of the southern group. 
 
 Washington, D. C., January 23, 1920. 
 
 COMMITTEE ON RESOLUTIONS. 
 JOHN BASSETT MOORE, 
 
 Chairman, 
 
 THEODORE H. THIESING, Secretary. 
 
REPORT OF THE COMMITTEE ON TRANSPORTATION AND 
 COMMUNICATIONS. 
 
 The honorable the SECRETARY OF THE TREASURY OF THE UNITED 
 STATES. 
 
 SIR: Your committee on transportation and communications has 
 judged it wise, for the fuller investigation of the subject, to treat 
 the matter of transportation and communications under four heads : 
 Maritime transportation; railroad transportation; wireless, cable, 
 and telegraph communication; postal facilities, documentation, and 
 maritime insurance. 
 
 .Recommendations of subcommittees which had studied these four 
 aspects of the problem were adopted unanimously by the committee 
 on transportation and communications, and are herewith presented as 
 the final recommendations of your committee. 
 
 MARITIME TRANSPORTATION. 
 
 1. A substantial reduction of freight rates: these have so increased 
 since the outbreak of the war that they are hampering commercial 
 intercourse between the United States and the Latin American 
 Republics. 
 
 2. The establishment of regular freight lines, the vessels of such 
 lines to be as large as is economically practicable, considering the port 
 depths, the loading and unloading facilities, and the kind of prod- 
 ucts generally shipped. 
 
 3. The use of cargo boats designed for special trades, particularly 
 for the movement of coal and bulk cargoes. 
 
 4. The conclusion of arrangements between the oceanic and coast- 
 wise shipping interests of various countries, whereby through rates, 
 including transfer service, may be secured, and through shipments 
 may be made from the larger ports to smaller ones at which oceanic 
 steamers do not touch. 
 
 5. The establishment of more frequent sailings and the use of 
 faster boats in the passenger service between the JJnited States and 
 Latin American countries. It is desirable that this type of service 
 should be at least equal in speed and accomodations to that existing 
 between the countries of Latin America and any other countries of 
 the world. 
 
 61 
 
62 SECOND PAN AMERICAN FINANCIAL CONFERENCE. 
 
 6. The establishment of a fast weekly passenger service between 
 New York and Buenos Aires by way of Rio cle Janeiro and Monte- 
 video. If vessels having the necessary draft, speed, and other requi- 
 sites for operation in such a service are not now available, their con- 
 struction should be started as soon as possible. 
 
 7. The establishment and operation of a provisional fortnightly 
 passenger service between New York and Buenos Aires by way of 
 Rio de Janeiro and Montevideo. In this service there should be used 
 steamers now available which are capable of maintaining an average- 
 of not less than 18 knots per hour. 
 
 8. The establishment of a line connecting the west and east coasts 
 of South America. If private enterprise is not able to take care of 
 this project properly, the amount of aid which could be given ix> 
 such a line by the various American Governments should be ascer- 
 tained in the manner suggested by the Chilean delegation. 
 
 9. The adoption of a policy whereby mail contracts should con- 
 cede more suitable remuneration for fast service, thereby aiding in 
 the improvement of passenger service to the various countries con- 
 cerned. 
 
 10. The reduction of port dues and handling charges in Latin 
 American countries, and the simplification and standardization of 
 port regulations. 
 
 11. In view of the importance of improving transportation facili- 
 ties and of securing continuous and concerted action in that direc- 
 tion, the International High Commission should appoint a perma- 
 nent committee to aid in the execution of the recommendations 
 herein made, and in general to investigate and study the problem of 
 ocean transportation for the purpose of making recommendations 
 to the various Governments for improvement of the service and for 
 the better development of commercial relations. 
 
 RAILROAD TRANSPORTATION. 
 
 1. That a conference be called of the Government officials 
 heads of companies operating in the Latin American Republics in 
 the near future for the purposes of preparing 
 
 (a) A comprehensive plan for the linking of small lines 
 into through trunk systems, whereby duplication of service 
 may be avoided. 
 
 (b) Plans for the operation, financing, and general stand- 
 ardization of rates, equipment, and practices of trunk-line 
 railways. 
 
 2. That consideration be given to the establishment of branch 
 roads for the development of the territory served by the trunk lines. 
 
BEPOET COMMITTEE ON TRANSPORTATION AND COMMUNICATIONS. Q& 
 
 3. That the nations of the South and Central American Republics 
 do their utmost to develop and utilize their resources, such as water 
 and petroleum, in order to have power to move their trains ; and that 
 new transcontinental lines be established traversing the continent 
 from east to west. 
 
 4. That as part of the internal transportation facilities of each of 
 the countries there be developed a system of highways suitable for 
 motor truck use and other vehicular traffic, giving access to the terri- 
 tory that can not be economically reached by steam railroads. Such 
 roads and highways will enable the railroads to obtain the products 
 of the interior and to distribute articles of commerce. 
 
 POSTAL FACILITIES. 
 
 1. That the delegates from all Latin- American Republics, not now 
 parties to postal conventions whereby mail is exchanged between 
 those countries and the United States under the rates, conditions, 
 and classifications applicable to the domestic service of each country, 
 urge upon their respective Governments the importance of entering 
 into such conventions ; and 
 
 2. That the delegates to the Second Pan American Financial Con- 
 ference be requested to urge upon their respective Governments the 
 importance of parcel post conventions providing and limiting in- 
 demnity for nondelivery of parcel post shipments, and the use of 
 the utmost diligence in reducing thefts of such shipments. 
 
 UNIFORMITY OF BILLS OF LADING. 
 
 1. That the Second Pan American Financial Conference request 
 the International High Commission to draft or to cause to be draf ted r 
 with due regard to the rights and liabilities of those interested in the 
 shipment and transportation of merchandise in the overseas trade be- 
 tween the countries represented in the conference, a uniform bill of 
 lading, with weight units expressed in both the avoirdupois and metric 
 systems, as simple in form and as limited in stipulations and condi- 
 tions as the practical necessities of the overseas service will admit; 
 and 
 
 2. That the International High Commission be further requested 
 to submit the draft of such bill of lading to the ministers of finance 
 of the countries represented in the conference, and to the United 
 States Shipping Board, the principal ocean carriers, and the leading 
 commercial organizations and foreign trade bankers of the United 
 States interested in overseas trade, with a request for their consid- 
 eration of, and conclusions with respect to, the proposed form ; and 
 
 3. That the International High Commission be further requested 
 to prepare or to cause to be prepared a final draft of such bill of lad- 
 ing with due regard to the criticisms and suggestions which shall have 
 
64 SECOND PAX AMERICAN FINANCIAL CONFERENCE. 
 
 been made by those to whom the first draft shall have been sub- 
 mitted, and to furnish copies of such final draft to the ministers 
 of finance of the countries represented in the conference, and to the 
 United States Shipping Board, the principal ocean carriers, and the 
 leading commercial organizations and foreign trade bankers of the 
 United States, with the request that all reasonable efforts be exerted 
 to have such proposed form of bill of lading adopted into common 
 use in the overseas trade between the respective countries ; and 
 
 4. That such form of bill of lading be known as the " Pan Amer- 
 ican Conference bill of lading." 
 
 WIRELESS, CABLE, AND TELEGRAPHIC COMMUNICATION. 
 
 1. That copies of the statement entitled "Postal, cable, and tele- 
 graph communication with Latin America " be furnished to the dele- 
 gates of the several nations represented at the conference ; and 
 
 2. That a permanent subcommittee on cables, wireless, and tele- 
 graphs be appointed by the conference, in view of the importance of 
 the subject and the inadequacy of existing facilities, with a view to 
 cooperation of such permanent subcommittee with such officials of 
 the Latin- American countries as may be designated by their re- 
 spective Governments, this subcommittee to function under the gen- 
 eral guidance of the International High Commission. 
 
 For the committee on transportation and communications, 
 
 J. W. ALEXANDER, 
 
 Chairman. 
 J. C. CORLISS, 
 
 Secretary. 
 
ARGENTINA. 
 
 REPORT OF THE CONFERENCE COMMITTEE. 
 
 The honorable the SECRETARY OF THE TREASURY OF THE UNITED 
 
 STATES. 
 SIR : Your committee has the honor to render the following report : 
 
 I. TRANSPORTATION. 
 
 It was reported that five steamers have been selected to run be- 
 tween New York, Brazil, Uruguay, and Argentina, having a speed 
 of about 15 knots and a displacement of from 14,000 to 18,000 tons. 
 These steamers will make the trip to Buenos Aires via Rio de Janeiro 
 and Montevideo in about 18 days. 
 
 The representatives of Argentina pointed out that during the past 
 30 years, except for the period of the war, faster service was in effect 
 from their country to Italy, France, Germany, and Spain, steamers 
 making the trip in 15 days. They desired, in order properly to 
 develop trade between the United States and Argentina, that a 
 similar service from this country be established, requesting that 
 steamers of about 18 knots be used. The representatives of Argen- 
 tina also pointed out the need of increased passenger and mail serv- 
 ice, their greatest difficulty being at present the inadequate number 
 of sailings to take care of the commercial mails, parcel post, and 
 business passengers between the two countries. 
 
 It was the consensus of opinion that a recommendation should be 
 made to the Shipping Board to have placed in this service as soon as 
 possible two or more steamers of greater speed, with a request at the 
 same time that payment be made for the carriage of mail and parcel 
 post by Argentina, Uruguay, Brazil, and the United States, this pay- 
 ment not to be considered in any way in the form of subsidy, but 
 simply a fair compensation for service rendered. 
 
 Need for improved docking and terminal facilities was pointed out 
 by the American group, and the Argentine delegation gave assurance 
 that improvements were now already under way and would be pushed 
 forward as rapidly as possible so as practically to double the present 
 facilities in the very near future. 
 
 1497021 5 65 
 
66 SECOND PAN AMERICAN FINANCIAL CONFERENCE. 
 
 The following resolution was adopted : 
 
 Whereas the Americas alone are at once capable of rapidly 
 increasing surplus yields of those products of mine, forest, and 
 field Avhich the world must have in" order to insure safety to 
 civilization ; and 
 
 Whereas only through the perfection of a transportation sys- 
 tem that will link the Americas each to the other and all w r ith 
 the markets of Europe, Asia, and Africa will rapid development 
 be promoted : Therefore be it 
 
 Resolved, That we suggest to the Transportation Committee 
 that it recommend that the Governments of the several American 
 Republics consider the advisability of entering into a joint agree- 
 ment looking to the fostering and developing of a perfected sys- 
 tem of passenger and freight steamship transportation which 
 will link the several countries of the Americas for purposes of 
 interchange, and the Americas as a whole with the markets of 
 the world. 
 
 II. BANKING. 
 
 The Argentine delegates drew attention to the existing laws in the 
 United States which prohibit the establishment of branches of for- 
 eign banks. They urged the committee to use its influence in order 
 that the States should pass legislation which would enable branches 
 of foreign State banks to do a general banking business in this coun- 
 try. A resolution was passed that the advisability and fairness of 
 such legislation be 'brought at once to the attention of the proper 
 authorities in each of the various States, this legislation to be applied 
 only to such countries as grant like privileges to branches of Ameri- 
 can institutions. Argentina expressed the belief that such legislation 
 would lead to the establishment in the United States of branches of 
 the Banco de la Nacion Argentina, which will lead to the further 
 development of commerce between the two countries. 
 
 III. NAME OF MONETARY UNIT. 
 
 The committee adopted the resolution that the proposed Pan 
 American monetary unit should be called " Colon." This coin, as 
 agreed upon at an earlier Pan American conference, was to have the 
 weight of 0.33437 grams of gold 0.900 fine, and to be subdivided 
 according to the decimal system. It is recommended that this name 
 and unit be adopted as the money for the payment of all accounts in 
 international commerce of the countries of the hemisphere. It is fur- 
 ther recommended that it be adopted in each of the various Republics 
 as opportunity may offer, whenever the laws governing their mone- 
 tary systems are discussed or reconsidered. 
 
REPORT OF THE CONFERENCE COMMITTEE ARGENTINA. 67 
 
 IV. CENSUS. 
 
 The Argentine delegates brought to the attention of the other 
 members of the group committee the fact that several of the South 
 American Republics have never taken a census, and that in many 
 other of the Republics only very incomplete and meager statistical 
 information had ever been compiled. They suggested that every 
 effort be made to influence all South American Republics to pursue a 
 definite plan in the collection of statistical information and that, 
 so far as possible, the same information be collected in all of the Re- 
 publics. The Argentine delegation felt that the system at present in 
 vogue in the United States was the most satisfactory and complete, 
 and they strongly recommended that this system be used as a basis 
 throughout Latin America, and that this uniformity should apply 
 to the systematized statistical works as well as to the census and also 
 to the definition of basic subjects and the adoption of classification 
 and methods. The Argentine delegation also pointed out that these 
 periods should be agreed upon by all of the Latin- American Republics 
 so that they should coincide with those of the United States; that is, 
 at ten-year intervals, beginning 1920. This suggestion met with the 
 unanimous approval of all of the members of this group. 
 
 V. COMMERCIAL ARBITRATION. 
 
 The following resolution was adopted : 
 
 Resolved, That the Second Pan-American Financial Conference 
 recommend to the Secretary of Commerce of the United States 
 that his department cooperate with business in the United States 
 and Argentina in developing closer relations, by instructing 
 the consular and trade agents to call attention to the existence 
 of arbitration boards maintained by chambers of commerce in 
 the United States and Argentina for the prompt adjustment 
 of business disputes. It is also recommended that all the Re- 
 publics of America, which have not already done so, adopt by 
 appropriate laws and regulations the contract of arbitration 
 originally celebrated between the Bolsa de Comercio de Buenos 
 Aires and the Chamber of Commerce of the United States, sub- 
 ject to such changes as may from time to time be agreed upon. 
 
 VI. TAXATION. 
 
 Resolved, That in view of the extension of income and inherit- 
 ance taxes in the various American States, the International 
 High Commission be asked to study the question of the best 
 method of avoiding the simultaneous double taxation of indi- 
 viduals and corporations. 
 
68 SECOND PAN AMERICAN FINANCIAL CONFERENCE. 
 
 VII. UNIFORM LEGISLATION FOR CORPORATIONS. 
 
 Resolved, That the International High Commission be asked 
 to study the possibility of achieving uniformity and relative 
 equality in the provisions governing the organization and fiscal 
 treatment of foreign corporations by the various American 
 Republics. 
 
 VIII. COMMERCIAL ATTACHES. 
 
 Resolved, That the conference recognizes the value of the sys- 
 tem of commercial attaches and urges upon Congress a substan- 
 tial extension of the system. 
 
 IX. TRADE-MARKS. 
 
 Resolved, To recommend an early approval by the Congresses 
 of the Republics of America of the convention concerning 
 copyrights and trade-marks which was approved in the Pan 
 American Conference held at Buenos Aires in May, 1910. 
 
 X. ARGENTINE-AMERICAN CHAMBER OF COMMERCE. 
 
 Resolved, That it should be recommended by the Second Pan 
 American Financial Conference that business men having con- 
 nections with Argentina should lend their moral and personal 
 support to the newly established organization of the Argentine- 
 American Chamber of Commerce in New York, which has been 
 created to promote commercial relations between the two coun- 
 tries. 
 
 Respectfully submitted. 
 
 The CONFERENCE COMMITTEE FOR ARGENTINA, 
 
 D. E. SALABERRY, Chairman. 
 
 F. A. VANDERLIP, Vice Chairman. 
 
 
BOLIVIA. 
 
 REPORT OF THE CONFERENCE COMMITTEE. 
 
 The honorable the SECRETARY OF THE TREASURY OF THE UNITED 
 STATES. 
 
 SIR: This report follows as closely as possible the program of 
 topics agreed upon by the Governments of the American Republics 
 for submission to the Second Pan American Financial Conference. 
 This report does not aim to include any matter which has been al- 
 ready covered either by the International High Commission or by 
 any o-f the official publications of the Bolivian Government. It is 
 felt that statistical data regarding Bolivia and its relations with 
 other countries have been so fully covered in the publications of the 
 International High Commission and of the Bolivian Government 
 that it will be superfluous to restate them. 
 
 The war of 19141918 stimulated the development of the domestic 
 resources of Bolivia in two distinct ways: First, by increasing the 
 prices obtained abroad for staple mineral products, such as tin and 
 copper, in some cases 200 per cent, and in some even more ; and sec- 
 ond, by enlarging the production and exportation of tungsten and 
 antimony, two metals which had never previously entered to any con- 
 siderable extent into international trade from Bolivia. The produc- 
 tion of rubber was also continued and a careful survey was made of 
 Bolivia's agricultural and pastoral resources. The exports of hides 
 doubled, while the value of wool exported increased nearly fiftyfold. 
 
 The group conference report of the First Pan American Financial 
 Congress stated the live-stock resources of Bolivia in considerable de- 
 tail, and the only new thing to be added is that the Bolivians hope 
 that packing houses will be erected in their country, and that with 
 the large amount of grazing land available, the progress of the pack- 
 ing industry in Paraguay, another interior country, in the last three 
 years, and in Argentina in the last 20 years will also take place in 
 Bolivia. It should be noted that Bolivians, like many other South 
 Americans, prefer to invest their money in farms and ranches rather 
 than in public loans and utilities. 
 
 Bolivia's international commerce increased by 206 per cent between 
 1914 and 1918. During this period the trade with the United States 
 not merely increased by one hundred and thirty-sixfold, but whereas 
 the United States was Bolivia's seventh largest customer in 1913, 
 
 69 
 
70 SECOND PAX AMERICAX FINANCIAL CONFERENCE. 
 
 England, Germany, and France being her first, second, and third 
 largest customers, respectively; in 1918 the situation was wholly re- 
 versed, England being Bolivia's largest customer, the United States 
 second, Chile third, France fourth, while Germany took nothing. 
 Fully as striking a change occurred in Bolivia's imports during this 
 same period. The relative rank of the four most important countries 
 which supplied Bolivia with her imports, with the percentage sup- 
 plied by each, is indicated by the following table : 
 
 1913 : Per cent 
 Germany 36. 50 
 
 England 20.27 
 
 Chile 10. 15 
 
 United States 7.38 
 
 1918 : Per cent. 
 
 United States 32.51 
 
 Chile 23.11 
 
 Peru 12. 48 
 
 England _ 11.85 
 
 Bolivia's imports from the United States in 1918, the last figures 
 available, amounted to 11,311,209 bolivianos arid her exports to the 
 United States 75,991,792 bolivianos, a total trade of 87,313,001 bolivi- 
 anos, or about $33,000,000 United States money. 
 
 Bolivia's most urgent financial needs are for railway and water- 
 power development and for the sanitation of her principal cities, 
 and also for the refinement of ores in Bolivia instead of sending them 
 out of the country for such processes. In general, it may be stated 
 that the advance of Bolivia can best be accomplished by foreign in- 
 vestment at the present time. lit is noted that the neighboring Re- 
 public of Chile has invested a considerable amount of money in 
 Bolivia. England, France, Germany, and the United States have 
 also invested money in that country, and the increase in investments 
 of the United States in Bolivia has been marked during the past 
 four years. 
 
 Probably no South American country more urgently needs railway 
 development than Bolivia, and during the war Bolivia spent her own 
 resources on railway construction, borrowing but little for this pur- 
 pose. It should be borne in mind that railway construction and de- 
 velopment are extremely expensive in all parts of Bolivia. Her most 
 important railway needs are as follows : 
 
 1. The railway from Atocha to La Quiaca, on the Argentine 
 frontier, concerning which the following resolution was adopted by 
 the Bolivian group committee on January 20, 1920 : 
 
 Whereas it has been shown that the line from Tupiza to La 
 Quiaca, of 100 kilometers, is now under construction, and it is 
 confidently expected can be completed in 30 months from Janu- 
 ary 1, 1920; and 
 
 Whereas the stretch from Atocha to Tupiza, of 105 kilometers, 
 would then be the only uncompleted piece of the entire line from 
 the Pacific to the Atlantic, insuring through communication 
 
REPORT OF THE CONFERENCE COMMITTEE BOLIVIA. 71 
 
 from La Paz via La Quiaca to Buenos Aires, therefore benefit- 
 ing that great section of South America : It is hereby 
 
 Resolved, That it is the sense of the Bolivian committee that 
 the banking interests of the United States should be encouraged 
 to grant a loan sufficient to complete this line (estimated time of 
 construction, 30 months, and estimated cost, $5,000,000) ; and 
 be it further 
 
 Resolved, That the Bolivian committee support the steps 
 which the Bolivian Government has already initiated in this 
 matter. 
 
 2. The railway from La Paz to the Beni River, through Yungas, 
 and the railway from Potosi to Sucre. 
 
 The following resolution was also adopted : 
 
 Whereas Bolivia requires additional transportation facilities 
 to link the mining and industrial districts in the western part of 
 the country with the agricultural districts in the eastern part; 
 and 
 
 Whereas modern sanitation is very necessary in the large 
 cities; and 
 
 Whereas Bolivia has enormous undeveloped rich natural re- 
 sources and a debt of only $8.50 per capita : Now. therefore, be it 
 Resolved, That, in the judgement of the Bolivian committee, 
 Bolivia should have credit, in addition to the amount necessary 
 to complete the railroad from Atocha to Tupiza, as approved 
 in a previous resolution adopted by this committee, and that 
 such additional credit should be granted in such amounts for 
 the additional transportation facilities and sanitation require- 
 ments heretofore mentioned as may be mutually agreed upon by 
 the Bolivian Government and bankers of the United States. 
 In reply to the question as to how the required capital and credit 
 facilities can best be extended to Bolivia, it should be stated that Bo- 
 livia's requirements for her public development can not now be met 
 by domestic capital. A large portion of Bolivia's needs must be 
 filled by foreign capital for many years to come, and this foreign 
 capital will not merely be obtained by credit granted to the Bolivian 
 Government, but also through United States branch banks and com- 
 mercial credit granted to Bolivian merchants. The Bolivian common 
 laborer is very effective in mining work, and if the new enterprises 
 entering Bolivia bring the necessary skilled labor to act as instruc- 
 tors it is believed that Bolivian labor can also be trained technically. 
 The present Bolivian public debt, according to the reports of the 
 central executive council of the International High Commission, 
 is $25,933,299.94, of which $15,000,000 is in external loans. 
 
 The national fiscal system has been fully covered by the reports 
 of the International High Commission. While Section IV of the 
 
72 SECOND PAX AMERICAN FINANCIAL CONFERENCE. 
 
 effect of the war on transportation facilities only indirectly affects 
 Bolivia, Bolivia is intensely interested in this matter of ocean trans- 
 portation, and desires to participate in any further conferences that 
 may be held in regard thereto. 
 
 Legislation is now pending before the Bolivian Congress on the 
 subject of commercial travelers, which is hoped will remove all 
 pending difficulties, since it will be national in character. The 
 Bolivian commercial code is being revised, which will be a great help 
 in international commerce. 
 
 Bolivia accepts the conclusions of the Pan American Conference 
 at Buenos Aires of 1916 regarding patents and copyrights and com- 
 mercial travelers, and she has adhered to the Pan American Con- 
 vention of 1910 regarding these matters. 
 
 As regards lower postal rates, it seems that the United States pro- 
 posed recently to all the South American countries, Bolivia included, 
 that they reduce their postal rates so that the foreign rate on first- 
 class mail matter equal the domestic. While Bolivia feels that this 
 is desirable, she deems it best to postpone definite action on this im- 
 portant matter for the present. Efforts are now being made to im- 
 prove the parcel post agreement of November 24, 1900, and its sup- 
 plementary agreement of November 30, 1901, between the United 
 States and Bolivia. La Paz and Oruro are the interchange offices 
 in Bolivia and New York and New Orleans in the United States. 
 This convention covers registered packages only and should be ex- 
 tended to other classes of packages. The desire was expressed that 
 more steamers stop at Arica and Mollendo with mail of all kinds for 
 Bolivia. 
 
 An interesting phase of this matter is the development of an inter- 
 national parcel post between the east and west coast of South America 
 through Bolivia. Bolivia is anxious to have a Pan American postal 
 congress meet at Buenos Aires. Such a conference will be held 
 shortly and the United States has been asked to participate in it. The 
 Bolivian delegates recommend that the United States adhere to the 
 Montevideo postal convention. 
 
 Bolivia has now a complete wireless system with central stations 
 of 100 kilowatts at Riberalta and Viacha, which cover the whole 
 country. 
 
 The United States had no consuls in Bolivia before 1919, and it 
 is felt that two or more consulates should be established, one at Oruro 
 and one in the eastern part of the country. 
 
 Steps have already been taken to reorganize the Bolivian National 
 Chamber of Commerce in order to complete and give effect to an 
 agreement with the United States Chamber of Commerce along the 
 lines of the agreement between the latter organization and the Bolsa 
 
REPORT OF THE CONFERENCE COMMITTEE BOLIVIA. 73 
 
 de Comercio of Buenos Aires. The Bolivian chambers of commerce 
 are being reorganized. 
 
 It was resolved by the Bolivian group committee that the secretary 
 of the United States group thereof, Mr. C. L. Chandler, be empow- 
 ered to discuss with the officers of the Bureau of Foreign and Do- 
 mestic Commerce of the United States Department of Commerce the 
 question of specifying the commodities composing Bolivian trade 
 with the United States in such a manner as to show their country of 
 origin, instead of crediting them to Peru. Chile, and other countries 
 through whose ports they may have been exported or imported. 
 
 The Bolivian committee, a majority of whose members have visited 
 Bolivia, in view of the industrial and economic requirements of 
 Bolivia, desires to express the hope that some additional arrangements 
 may be effected in the near future which will permit it to enjoy a 
 fuller measure of transportation, port, and customs independence. 
 
 Respectfully submitted. 
 
 THE CONFERENCE COMMITTEE FOR BOLIVIA, 
 
 J. L. TEJADA, Chairman. 
 
 JOSEPH P. GRACE, Vice Chairman. 
 
BRAZIL. 
 
 REPORT OF THE CONFERENCE COMMITTEE. 
 
 The honorable, 
 
 THE SECRETARY OF THE TREASURY OF THE UNITED STATES. 
 
 SIR: The conference committee for Brazil was composed of the 
 following-named gentlemen : Dr. Carlos Cesar De Oliveira Sampaio, 
 chairman; Mr. Oscar T. Crosby, vice chairman; Dr. Manoel Coelho 
 Rodrigues and Mr. P. A. Martin, cosecretaries ; and the following 
 members : Messrs. Chandler P. Anderson, Joseph H. Bagley, William 
 S. Culbertson, Henry S. Dennison, A. H. Dick, W. Cameron Forbes, 
 Edward S. Huxley, W. S. Kies, Frederico Lage, F. A. Molitor, 
 William E. Peck, V. H. Pinckney, Theodore F. Whitmarsh. Messrs. 
 Gerard Swope and A. S. Peabody were unable to be present. 
 
 Subcommittees were appointed to deal with each topic agreed upon 
 by the Governments of the American Eepublics for submission to the 
 conference. After full discussion of the reports of these subcom- 
 mittees the following statements, recommendations, and resolutions 
 were adopted : 
 
 I. THE EFFECT OF THE WAR ON THE COMMERCE AND INDUSTRY, MANU- 
 FACTURING AND MINING, AGRICULTURE, AND PUBLIC UTILITIES OF 
 THE EEPUBLICS OF THE AMERICAN CONTINENT. 
 
 With the sudden outbreak of the war Brazil, like other South 
 American countries, found herself cut off from her banking facilities. 
 While Brazil always has had a large trade with the United States, 
 before the war this trade was financed mainly through the instrumen- 
 talities of the European banking agencies. Just before the declara- 
 tion of war Brazil had under way negotiations looking toward the 
 rehabilitation of her finances. The war terminated these negotia- 
 tions. The Government of Brazil has not been able to borrow any 
 new money during the period of war. Two of her cities, Rio de 
 Janeiro and Sao Paulo, have made loans in the United States. 
 
 The inability to make loans, coupled with the increase in the ex- 
 penses of the Government, has resulted in an accumulation of 
 deficits, an increase in the national debt, and a financial situation 
 which presents many difficult problems. 
 74 
 
REPORT OF THE CONFERENCE COMMITTEE BRAZIL. 75 
 
 During the war the amount of paper money has been increased 
 rseveral times. The gold reserve has dwindled, and to-day Brazil may 
 be said to be upon a paper basis. The currency, while theoretically 
 convertible, is, in fact, inconvertible. In spite of the increase in the 
 circulating medium and the decrease in the gold reserve, the resources 
 of the country and the demands of business are so great that the 
 new issues of paper money have been absorbed and, as a matter of 
 fact, the milreis in the markets of the world to-day has a higher 
 exchange value than several years ago. To summarize the effect of 
 the war upon the finances of the Brazilian Government, it may be 
 :said that the war has brought additional complications to an already 
 difficult governmental financial situation. 
 
 Brazil's banking and financial situation merits thoughtful and 
 intensive study with the purpose of developing a comprehensive 
 financial plan to meet the situation. Brazil's resources and her pos- 
 sibilities for wealth are so great that her debt is not burdensome. 
 The immense physical resources of the country and the high moral 
 character of the nation itself furnish a background of security which 
 should facilitate the carrying out of a comprehensive financial 
 program. 
 
 While the war has complicated the problems of the Government of 
 Brazil, it has brought to the Brazilian people certain advantages in 
 the development of a greater dependence upon their own resources. 
 The war interrupted shipping facilities, commercial relationships, 
 interfered with established lines of business, cut off some of the 
 chief markets for Brazilian products, and in other ways affected 
 the business progress of the country. After the first shock 
 Brazil started to work to do for itself what it could in the 
 development of its resources. It has accomplished much during 
 the war. Vast stretches of land have been put under production. 
 Great impetus has been given to the cattle industry. Brazil has 
 increased its production in cotton, corn, and in other food prod- 
 ucts. Its cotton-manufacturing industry has shown remarkable 
 strides, and to-day at the close of the war Brazil is commercially 
 and economically sound. While prices have risen in many lines, 
 there has been no general inflation. A good many public improve- 
 ments have been carried out with Brazilian money, but Brazil's 
 development has not yet reached the point where it is able to 
 accumulate sufficient capital to build railroads, extend its public 
 utilities, develop its natural resources, and carry out a program of 
 public improvements ; its capital is all put to use in the development 
 of new lands, in the upbuilding of industries based upon its natural 
 resources. It must, therefore, be dependent upon outside capital 
 for years to come for the construction of railroads and the carrying 
 on of large public improvements. The obtaining of money for these 
 
76 SECOND PAN AMERICAN FINANCIAL CONFERENCE. 
 
 
 purposes through loans from the United States or any other country 
 depends upon the general credit of Brazil, and this in turn depends; 
 upon the working out of Brazil's financial problem as herein set 
 forth. 
 
 Brazil has probably attained a greater degree of economic inde- 
 pendence during the war than almost any of the Pan American 
 countries; this on account of diversity of its resources. With the 
 exception of coal Brazil is abundantly supplied with practically all 
 of the important natural resources. Certain low-grade deposits of 
 coal have been developed during the Avar, but Brazil will probably 
 always be a purchaser of coal. In this connection an interesting 
 fact may be noted in that a substantial market for coal from the 
 United States has been developed, but the permanence of this market 
 will depend to a very large extent upon improved shipping facilities- 
 between Brazil and the United States. 
 
 The development of Brazil's economic independence has been de- 
 layed by the war in so far as it has been unable to raise capital to de- 
 velop those resources which would materially aid it in achieving its 
 economic independence. In this connection may be mentioned the 
 enormous iron-ore deposits in Brazil and the country's ambition to* 
 develop a steel industry sufficient to take care of its needs. 
 
 URGENT PRESENT PUBLIC FINANCIAL NEEDS. 
 
 This subject has been covered above in the discussion of Brazil's 
 financial situation. Governmental financing will be difficult without 
 the working out of a comprehensive financial program which will 
 necessitate fundamental changes in the banking and currency sys- 
 tems. 
 
 The development of public utilities in Brazil has been substantial ; 
 practically every city of any size is well lighted, and all the larger 
 cities have street railways and modern conveniences. The water- 
 power developments in the cities of Rio de Janeiro and Sao Paula 
 have resulted in making Rio de Janeiro one of the best-lighted cities 
 in the world. Power in both of these cities is cheap, and Brazilians 
 have every right to be proud of these enterprises. Railroad develop- 
 ment has been backward and vast areas of extremely fertile land 
 will become accessible by the extension of railroads- New equip- 
 ment and increase of facilities in the case of many existing lines is 
 urgently needed. 
 
 URGENT PRESENT FINANCIAL NEEDS IN COMMERCE AND INDUSTRY. 
 
 The banking facilities of Brazil are well developed and the ordi- 
 nary commercial needs of the country are well served. In certain in- 
 dustries capital is needed to install machinery which will result im- 
 
REPORT OF THE CONFERENCE COMMITTEE BRAZIL. 77 
 
 mediately in increasing production; particularly is this true in the 
 sugar industry. The installation of modern sugar mills would result 
 in a far greater percentage of extraction and a subsequent very sub- 
 stantial gain in actual production of sugar. 
 
 The .sugar industry in Brazil is in immediate need of capital to do 
 away with the severe economic loss occasioned by the use of primitive 
 methods and antiquated mills. 
 
 Brazil's rubber industry has prospered during the war. Consider- 
 ing the fact that the cultivated rubber which is used so largely in the 
 rubber industry had its origin in Brazil, we feel that Brazil has op- 
 portunities for great expansion along these lines. Capital in the 
 rubber industry is needed and should produce favorable results. 
 
 The coffee situation is good. 
 
 The production and exportation of manganese was largely in- 
 creased during the war and it is believed that the figures then reached 
 will be maintained. 
 
 Brazil, in common with other American countries, is a great pro- 
 ducer of raw materials, and, considering the world's present need of 
 raw materials of all kinds, it would seem that Brazil and other pro- 
 ducing countries should receive consideration in their needs for capi- 
 tal for the development of the natural resources which will materially 
 contribute toward feeding and clothing the world. 
 
 II. How CAN REQUIRED CAPITAL AND CREDIT FACILITIES BEST BE 
 
 PROVIDED ? 
 
 The subcommittee recognizes that the resources of Brazil are so 
 large that properly to develop them not only can all the available 
 domestic capital be used but also as much foreign capital as might 
 be secured. At the present stage of development, it is our opinion 
 that the best interests of the country require the use of as much 
 domestic capital as possible in commercial and agricultural pursuits 
 and that railroad, public utility, and industrial development can 
 best be financed by foreign capital. 
 
 The necessary banking and credit facilities for trade between the 
 United States and Brazil have in years past been supplied almost 
 entirely by the agencies in the United States or European banks. Ow- 
 ing to the lack of American banking facilities, the American export- 
 ers were placed in an embarrassing situation at the beginning of the 
 World War owing to the withdrawal of the facilities which had been 
 previously extended to them by the European banks. These facilities 
 have been supplemented in recent years by the establishment of 
 American branch banks which relieved the situation to a considerable 
 extent. In view of past occurrences, however, it is our opinion, that 
 to safeguard properly the commercial interests of both Brazil and the 
 
78 SECOND PAN AMERICAN FINANCIAL CONFERENCE. 
 
 United States it is of the utmost importance that American banking 
 facilities should be extended to a point commensurate with the trade 
 between the two countries. 
 
 It also would seem desirable to encourage the establishment of 
 agencies or branches of Brazilian banks in the United States, and 
 the committee therefore recommends that the law r s of the various 
 States, and in so far as necessary the laws of the United States, be 
 so changed as to permit the establishment of branches of foreign 
 banks in the United States under such general conditions as branches 
 of American banks are permitted in such foreign countries, subject, 
 however, to the same general regulations governing deposits and 
 banking practice as are applied to American banks. 
 
 The committee notes with satisfaction the growth of the use of 
 the acceptance in commercial business between the United States 
 and Brazil. The narrowness of the New York acceptance market 
 due to high money rates has increased the cost of financing foreign 
 business, but as the conditions approach normal and a wider accept- 
 ance market is developed in the United States we believe the accept- 
 ance will be found to be the most efficient instrument in the financing- 
 of foreign trade. 
 
 There has been developed in recent years, particularly since the 
 beginning of the European war, a limited market in the United 
 States for foreign securities. While the loans floated have been 
 almost entirely of a governmental nature, the American investing 
 public should be encouraged in every possible way to invest part of 
 their capital in foreign securities, as such loans are productive of 
 good feeling and closer relationship between the countries involved. 
 Moreover, the investment of American capital in railroad, public- 
 utility, and industrial enterprises controlling, as it would, the pur- 
 chasing of the necessary materials would insure not only the con- 
 tinuance but the growth of commercial relations between the coun- 
 tries. (See resolutions below.) 
 
 The important fact must not be overlooked that there is always 
 present the necessity for a close observation on the part of borrow- 
 ing nations of the laws and customs of the countries in which loans 
 are sought, and the committee wishes to emphasize the importance 
 to countries needing outside capital for the development of their 
 resources and industries of a policy of cordial treatment of such 
 capital. Moderate taxation and freedom from annoying or burden- 
 some restrictions will undoubtedly result in encouraging capital to 
 flow more freely into the needed channels. 
 
 Bearing on the general subject treated by this section of the 
 report, the following resolutions were adopted : 
 
 Whereas investors in the United States are accustomed to 
 certain corporate forms of organization and to certain legal 
 
REPOKT OF- THE CONFERENCE COMMITTEE BRAZIL. 79 
 
 safeguards in connection with property pledged as security for 
 bonds, notes, and other evidences of indebtedness: Be it 
 
 Resolved, That the committee respectfully calls to the atten- 
 tion of ithe South American countries the desirability of so 
 modifying their banking laws as to permit the establishment 
 of banking institutions fulfilling the same general functions as 
 those of the trust companies of the United States. 
 
 Whereas both in the United States and England the use of 
 preferred stock has been found very convenient in the financing 
 of railroad, public utility, and industrial enterprise; and 
 
 Whereas the laws of Brazil do not recognize such a form of 
 stock : Now be it 
 
 Resolved, That this committee recommends that the Brazilian 
 Government take under consideration an amendment of the law 
 regulating the organization of corporations in Brazil so as to 
 permit the issuance of both preferred and common stock, which 
 would facilitate the securing of foreign capital for the develop- 
 ment of the resources of Brazil. 
 
 Whereas the proper development of railroad facilities, so im- 
 portant to the welfare of Brazil, requires the use of considerable 
 equipment; and 
 
 Whereas equipment trust certificates have been found ex- 
 tremely useful in the railroad development of the United States ; 
 and 
 
 Whereas the issuance of such equipment trust certificates is 
 not permitted under the Civil Code of Brazil : Now be it 
 
 Resolved, . That the committee recommends that the Govern- 
 ment of Brazil take under consideration amending its civil code 
 so as to permit the pledging of railroad equipment as security 
 for equipment trust certificates. 
 
 III. NATIONAL CREDIT AND THE FACTORS AFFECTING IT. 
 
 EXTENT AND NATURE OF THE PUBLIC DEBT. 
 
 In May, 1919, the public debt of Brazil was calculated to be 
 :,104 : 539$272, the equivalent in United States currency equaling 
 >1,133,864,440. The nature of the debt was as follows: 
 
 (Milreis.) 
 
 Foreign debt 2, 048 : 965$032 
 
 Domestic debt 798:202$760 
 
 2, 847 : 167$792 
 
 Paper money. 1, 257 : 421$480 
 
 4, 104 : 589$272 
 
80 SECOND PAN AMERICAN FINANCIAL CONFERENCE. 
 
 (United States currency.) 
 
 Foreign debt $566, 122, 440 
 
 Domestic debt 220, 498, 000 
 
 * $786, 620, 440 
 
 Paper money 347,345,000 
 
 $1, 133, 965, 440 
 Exchange rate used, 3.62 paper milreis equal $1. 
 
 This figure does not include any State or municipal debts. Taking 
 25,000,000 as the population of Brazil, the debt per capita, equals 
 $45.35. The debts of the following foreign countries afford means of 
 comparison : 
 
 Peru $6. 50 
 
 Chile 11.50 
 
 Argentina r 96.88 
 
 Bolivia^ 7. 00 
 
 Nicaragua 63. 95 
 
 In 1914 the Brazilian Government suspended cash payments of 
 interest and sinking fund, funding interest until 1917. In 1917 the 
 Government resumed cash payments of interest. Resumption 
 of operation of the sinking fund has been postponed until 1927. 
 (Report of International High Commission.) 
 
 NATIONAL FISCAL SYSTEM WITH SPECIAL REFERENCE TO SOURCES AND 
 ADEQUACY OF REVENUES. 
 
 As Dr. Sampaio, the distinguished delegate from Brazil, has 
 very ably stated, a country may be said to have a sound fiscal policy 
 if its revenues are sufficiently large to pay all the expenses of the 
 Government and interest and provide for the ultimate extinction of 
 the public debt. Brazil does not show sufficient revenues to meet these 
 requirements. Brazil, until recently, derived its main sources of 
 revenue from import duties, approximately two-thirds of its entire 
 revenue being raised from these sources. While specific duties are 
 paid upon a large number of articles, the duties collected on an ad 
 valorem basis comprise the greater part of the revenue. According 
 to Brazilian law, duties on imports go to the national treasury, while 
 all revenues collected from exports go to the State treasuries, ex- 
 cepting for the Territory of Acre. The failure to secure tonnage 
 and other conditions, arising from the exigencies of war, resulted in 
 a marked falling off in the import tonnage which reflected upon the 
 revenue of the country. 
 
 The following figures (from reports of the Interantional High 
 Commission) show the decline of imports: . 
 
REPORT OF THE CONFERENCE COMMITTEE BRAZIL. 81 
 
 Value of imports. 
 
 1900 $161. 250, 000 
 
 1913 180, 000, 000 
 
 1914 251, 873, 850 
 
 1916 , 155, 440, 597 
 
 1918 259, 224, 110 
 
 1919 (first 6 months) 187,932,216 
 
 The large increase in the value of imports in 1918 is not due to the 
 corresponding increase of tonnage, but due to the rapid increase of 
 prices. 
 
 The following table shows the annual deficits for the years 1914 
 to 1916 : 
 
 Annual deficits. 
 
 
 Gold. 
 
 Paper. 
 
 1914 
 
 275-2178876 
 
 328, 616:5688204 
 
 1915 
 
 30, 707:9208601 
 
 217,484:1938898 
 
 1916 
 
 22. 860:2328746 
 
 156, 905:4888924 
 
 1917 
 
 39 004-4778817 
 
 205 173-8738959 
 
 1918 
 
 34, 448:6418582 
 
 67,417:1928289 
 
 
 
 
 
 127, 296:4908622 
 
 975, 597:3178274 
 
 According to the budget of 1919, there will be an estimated deficit 
 of $6,713,714 United States currency. 
 
 The war caused a correspondingly large decline in the imports of 
 all of the South American countries, imports from Argentina, lor 
 example, falling from $408,711,000 in 1913 to $210,887,000 in 1916. 
 
 Cuba shows a constant gain in its import trade, this being due, 
 however, to the preponderance of commerce with the United States. 
 
 The authorities of Brazil have come to the realization that it is not 
 wise to depend too much upon any one source of revenue. It is with 
 great satisfaction that the committee reports that the Brazilian Gov- 
 ernment has already commenced to increase its collections from in- 
 ternal revenues and will not in the future be so far dependent upon 
 the revenue derived only from customs. If the present plans of the 
 Brazilian Government are realized the country will have an excess 
 of revenue over expenditure at a very early date which should reflect 
 itself on the value stability of its currency. 
 
 Besides taxes levied to produce Federal revenues, there are taxes 
 levied by the States. Just care should be exercised by the Federal 
 and State authorities to prevent such taxes becoming prohibitive. 
 
 RELATION OF THE FISCAL SYSTEM AND CURRENCY REFORM. 
 
 The committee is pleased to concur with the economic principles 
 set forth by the distinguished representative from Brazil, Dr. Sam- 
 1497021 6 
 
82 SECOND PAX AMERICAN FINANCIAL CONFERENCE. 
 
 paio, that the first step in currency reform is to place the financial 
 operation of the country on a paying basis, and when the steps now 
 adopted by the Brazilian Government shall become effective and the 
 budget shows sufficient revenue to meet all of the obligations of the 
 Government, including interest a"nd amortization of the public debt,, 
 together with an adequate gold reserve and effective methods of con- 
 version, there is no reason why there should be any difference in the 
 market price between official gold milreis and the current paper. 
 Such stability of currency is greatly to be desired and would have a 
 beneficial effect not only upon the internal industries of the country 
 itself but upon the external trade. 
 
 WHAT GUARANTEES AND REMEDIES ARE PROVIDED BY LAW IN THE CASE OF 
 PROVINCIAL AND MUNICIPAL LAW. 
 
 The Brazilian Government assumes no responsibility for the pay- 
 ment of principal or interest of State or municipal debts. Foreign 
 creditors have recourse in the Federal courts under the judicial code, 
 which is of Federal enactment, and therefore uniform for all the 
 States, in pleasing contrast to the variety of procedures that prevail 
 in the United States. 
 
 There is a provision for foreign Governments to bring suits on 
 behalf of the Government or individual citizen in the Federal Su- 
 preme Court. This procedure has not as yet been used. 
 
 The loans usually carry a clause containing a mortgage provision. 
 
 IV. THE EFFECT OF THE WAR ON TRANSPORTATION FACILITIES; RE- 
 QUIREMENTS OF THE PRESENT AND IMMEDIATE FUTURE. 
 
 The subcommittee appointed to study this topic submitted the 
 following resolutions, which were adopted by the conference com- 
 mittee as a whole : 
 
 Whereas the chairman of the Shipping Board has announced 
 a proposed service to the east coast of South America by pas- 
 senger ships which apparently are limited to 15 knots an hour 
 and of comparatively small tonnage ; and 
 
 Whereas the committee believes the needs of South America 
 are such that the service as announced is inadequate, and 
 that the interests of North and South America demand quicker 
 and more frequent communications and ships of a larger size 
 to meet the competition of other maritime nations: Therefore, 
 be it 
 
 Resolved, That this Brazil conference committee place itself 
 on record to the effect that the relations between North and South 
 
REPORT OF THE CONFERENCE COMMITTEE BRAZIL. 83 
 
 America are so important and the possibilities of the develop- 
 ment of business between North America and the eastern 
 coast of South America are so great as to make it desir- 
 able that ships be provided for the carriage of passengers, 18 
 knots per hour and from eighteen to twenty thousand tons in 
 size, and that the service to ports not capable of receiving such 
 steamers be handled by transshipment. 
 
 The following resolution dealing with both ocean and land trans- 
 portation was adopted : 
 
 Resolved, That it be suggested to the various Governments 
 here represented that they authorize suitable commissions to 
 consult with other such commissions, with a view to considering 
 in detail : 
 
 I. OCEAN TRANSPORTATION. 
 
 1. The establishment of fast passenger and mail service be- 
 tween North America and the east coast of South America in 
 order to adequately provide this urgently needed service. 
 
 2. The establishment of freight steamers which will be as 
 large as economically possible, having in view port depths and 
 facilities in the various harbors. 
 
 3. The establishment of suitable combinations between the 
 transoceanic and the coastwise shipping of the various coun- 
 tries, in order that through rates, including transfer services, 
 can be secured and continuous shipments made from larger to 
 the smaller ports at which the transoceanic steamers do not 
 touch. 
 
 II. LAND TRANSPORTATION. 
 
 1. The question of standardization of railroad equipment, in 
 so far as that may be possible. 
 
 2. The establishment of through railroad rates and uniform 
 traffic regulations in order to facilitate through shipments be- 
 tween the various States and countries. 
 
 The committee desires to put itself on record as concurring in the 
 new policy which it is understood has been adopted by the Govern- 
 ment of Brazil when assisting the construction of railroads. This 
 policy is to guarantee interest upon the amount expended in the 
 construction of railroads, the route, distance, specification, and esti- 
 mated cost having been previously determined by surveys approved 
 by the Government. 
 
 The old system of guaranty upon a kilometer basis was uneco- 
 nomical both for construction and operation. 
 
84 SECOND PAN AMERICAN FINANCIAL CONFERENCE. 
 
 V. MEASURES TO FACILITATE COMMERCIAL INTERCOURSE AMONG THE 
 AMERICAN REPUBLICS. 
 
 THE CONVENTION CONCERNING COMMERCIAL TRAVELERS. 
 
 The convention concerning commercial travelers advocated by the 
 International High Commission has been approved by Brazil, but 
 no authority to sign has been granted. One of the obstacles in the 
 case of Brazil is the autonomy of the Brazilian States. It has been 
 the practice of these States to charge fees to commercial travelers 
 within their borders, and this has become an important source of 
 income for many of these States. In addition to these State taxes, 
 there is also a tax on commercial travelers assessed by the Federal 
 Government of Brazil. 
 
 This convention, would do away with this practice and also pro- 
 vide for the free entry of samples without commercial value. 
 
 The United States has signed and ratified this convention with 
 several American Republics. 
 
 Recommended, That this convention have further consideration 
 by the countries concerned with a view to the removal of the diffi- 
 culties above stated. 
 
 THE CONVENTION TO ESTABLISH AN INTERNATIONAL GOLD CLEARANCE 
 
 FUND. 
 
 This convention, advocated by the International High Commission, 
 has been approved by Brazil in principle but has not been signed. 
 
 The United States has signed this convention with several Ameri- 
 can Republics, but has not ratified it. 
 
 Recommended, That the gold clearance fund convention be modi- 
 fied in the light of our war experience and it thereupon be ratified. 
 
 PARCEL POST FACILITIES AND LOWER POSTAL RATES. 
 
 A. A parcel post convention has been entered into between the 
 United States end Brazil. The effective operation of this conven- 
 tion would be stimulated by the extention of parcel post facilities in 
 Brazil, which at the present time are confined to comparatively few 
 localities. At present each country retains the receipts which it 
 takes in. The business in parcel post from the United States to 
 Brazil far exceeds the parcel post business from Brazil to the United 
 States. It is possible that a different division of receipts would be 
 advantageous to both countries. 
 
 Recommended (1) That the postal authorities of both Governments 
 give consideration to the question of making such changes in the 
 convention as may be advantageous for stimulating the parcel post 
 service. 
 
REPORT OF THE CONFERENCE COMMITTEE BRAZIL, 85 
 
 (2) That the system of parcel post distribution in Brazil be ex- 
 tended. 
 
 B. Lower postal rates: Lower postal rates are unquestionably de- 
 sirable, but it is questioned whether with the existing facilities and 
 present general conditions this is an opportune time for a recom- 
 mendation. But it does seem possible that with other means of trans- 
 porting mail, in line with the present aerial development, lower postal 
 rates may be brought about, and that this end may be more readily 
 attained ii* there be established an international training ground for 
 the development of an international aviation service, with the idea 
 of establishing at the earliest possible moment an international aerial 
 postal service, including parcel post. 
 
 CABLE FACILITIES WIRELESS TELEGRAPHY. 
 
 At present there is no wireless between Brazil and the United States,, 
 and the only means of cable communication is either on the English 
 line via England or on the All- American lines via Argentina and 
 Chile. Inasmuch as communication is necessarily precedent to com- 
 mercial development, it is obvious that before there can be any ma- 
 terial advancement in our commercial relations improved communi- 
 cations are imperative. Improved communications may take either 
 the form of a direct cable connection between the United States and 
 Brazil along the east coast or an extension of the line already exist- 
 ing from here to Colon. In addition there should be established 
 wireless stations for communication between the United States and 
 Brazil, the stations in each country to be owned and controlled by the 
 country in which they are located. 
 
 One of the obstacles to be overcome in the establishment of direct 
 cable communication between the United States and Brazil along 
 the east coast is a concession presumably granting to a French com- 
 pany the exclusive right to establish cable communications between 
 the United States and Brazil. 
 
 Resolved, That it be suggested to the various Governments 
 here represented that they authorize suitable commissions to con- 
 sult with other such commissions, with a view to consider tech- 
 nical details of through rates and construction of new cable lines 
 and radio facilities. 
 
 THE ESTABLISHMENT OF FREE PORTS. 
 
 The establishment of free ports as a facility of commerce is ap- 
 proved. If established in the United States and at the Canal Zone 
 they would facilitate transshipment trade with the other Americas 
 and a wider distribution of materials and manufactured products 
 throughout the world. If established in Brazil at such points as> 
 
86 SECOND PAN AMERICAN FINANCIAL CONFERENCE. 
 
 Para they would facilitate transshipment trade up the Amazon with 
 Bolivia and Peru. Where private companies have port concessions 
 their rights must be considered. 
 
 Recommended, to the Republics of the Americas, That permissive 
 legislation be enacted authorizing the establishment of free ports or 
 zones in any port fulfilling specified requirements having regard to 
 the local conditions, laws, contracts, and the possibility of contra- 
 band activities. 
 
 VI. THE DEVELOPMENT OF UNIFORMITY OF LEGISLATION. 
 
 Your subcommittee on Section VI believes that while uniformity 
 of legislation would be highly desirable, yet its consummation is im- 
 practicable. A simplification of procedure and of forms will, we 
 believe, bring about better and more immediate results and will in 
 Itself be an approach to uniformity. 
 
 In the matter of customs regulations we believe the problems in- 
 volved are local and not susceptible of uniform treatment. 
 
 Undervaluation of merchandise with intent to defraud is so repre- 
 hensible as to merit drastic treatment. We make no recommenda- 
 tions as to penalties, but offer the suggestion that plans be studied 
 having for their purpose the elimination or reduction of the ad 
 valorem duties where the enforcement of true valuation is difficult. 
 
 Consular invoices and procedure should receive the maximum of 
 simplification, since it is essential that the minimum of time should 
 be consumed in the preparation of the documents. We suggest that 
 consular invoices be so designed as to permit their being filled out on 
 the typewriter. Columns for the total number of packages and the 
 total weight of shipment seem to be all that is necessary, since the 
 total thus written will preclude change of figures in any separate 
 Items. Errors in the preparation of consular invoices should be per- 
 mitted to be remedied by an explanatory letter. The various con- 
 sulates of any one nation, regardless of their location, should use 
 uniform documents. We regard the matter of simplification of con- 
 sular forms and procedure of sufficient importance to suggest that a 
 consular conference be called at an early date, the membership to be 
 composed of Pan American consular officials. 
 
 The limited time at our disposal has precluded any intensive study 
 of port dues, sanitary requirements, wharfage, customs classification, 
 and nomenclature, etc. 
 
 We believe that the matter of negotiable instruments and com- 
 mercial contracts should be approached on the basis of the moral 
 obligations rather than the legislative enactments behind them. 
 Even when laws differ, practice can approach uniformity by the 
 development of mutual agreements based upon the moral obliga- 
 
REPORT OF THE CONFERENCE COMMITTEE BRAZIL. 87 
 
 tions of good business. Sound practice thus established will be even- 
 tually crystallized into law. We hope that agreements embodying 
 the same principles as those existing bet\veen the Chambers of Com- 
 merce of Buenos Aires, Montevideo, and Guayaquil and the Cham- 
 ber of Commerce of the United States will be speedily concluded with 
 the appropriate business organizations of Brazil. 
 
 We indorse the purposes of the American International Union 
 for the Protection of Trade-Marks and recommend that it receive 
 the support of all the nations of the Americas. 
 
 We refrain from recommendations in the matter of uniform 
 admiralty law, believing the subject to require more time for its 
 study than has been placed at the disposal of the subcommittee. 
 
 ADDITIONAL RECOMMENDATIONS. 
 
 At the instance of the Hon. John Barrett, Director of the Pan 
 American Union, the conference committee adopted the following 
 recommendations : 
 
 First. That each government of the Pan American Union 
 shall arrange that regularly and permanently its various depart- 
 ments and bureaus shall deposit in the library of the Pan 
 American Union two copies of all informative official publica- 
 tions, maps, and other data, including the report of the Treasury 
 and other financial agencies ; 
 
 Second. That each Government consider the advisability of 
 preparing under its direction a comprehensive standard hand- 
 book in English describing its financial, commercial, material, 
 and other conditions, to be distributed through the Pan Ameri- 
 can Union ; 
 
 Third. That each Government deposit in the Pan American 
 Union, for exhibit whenever necessary, films descriptive of its 
 life and resources; and 
 
 Fourth. That every effort be made by each Government to 
 make the Pan American Union a practical, up to date central 
 bureau of information. 
 Respectfully submitted. 
 
 THE CONFERENCE COMMITTEE FOR BRAZIL, 
 CARLOS CESAR DE OEIVEIRA SAMPAIO, 
 
 Chairman. 
 OSCAR T. CROSBY, Vice Chairman. 
 
CHILE. 
 
 REPORT OF THE CONFERENCE COMMITTEE. 
 
 The honorable the SECRETARY or THE TREASURY OF THE UNITED 
 
 STATES. 
 
 SIR: On behalf of the Chilean group committee, we beg to an- 
 nounce that after several well-attended conferences and after full 
 discussion of the topics involved, it was agreed to submit the follow- 
 ing report to the Second Pan American Financial Conference : 
 
 DOCUMENTS PRESENTED BY CHILEAN DELEGATION. 
 
 The conference group had the advantage of receiving from the 
 Chilean delegation a number of carefully prepared reports covering 
 fully almost all the topics included in the preliminary program placed 
 before the group. These documents are as follows : 
 
 I. Monetary system. 
 
 II. Taxation: Custom duties, national taxes, local taxes, annual 
 report of the treasury, external debt, internal debt, currency. 
 
 III. Banking system. Banking facilities. 
 
 IV. Bills of exchange and checks. Comparison of Chile's commer- 
 cial code and The Hague conventions. 
 
 V. Patents and trade-marks. 
 
 VI. Customs and commercial statistics. 
 
 VII. Land transaction. 
 
 VIII. Maritime transportation. 
 
 There was furthermore delivered before the conference an address 
 by Dr. Victor V. Robles, a member of the Chilean delegation, who 
 gave a short description of the effect of the war on the general in- 
 dustrial and agricultural conditions of Civile. 
 
 NITRATE SITUATION. 
 
 The committee wishes to call particular attention to the fact that 
 in some of the documents submitted to the committee, the statement 
 has been made that the nitrate industry had collapsed as a result of 
 the armistice. While it is true that temporarily this industry was 
 
 88 
 
REPORT OF THE CONFERENCE COMMITTEE CHILE. 89 
 
 affected, it ought to be stated with great emphasis that conditions 
 have since assumed a more normal status and that the nitrate situa- 
 tion has now recovered its usual activity. 
 
 Dealing more specifically with some of the topics treated in the De- 
 ports submitted by the Chilean delegation, the conference group begs 
 leave to offer the following observations. 
 
 BANKING AND CURRENCY. 
 
 The Avar has brought about very drastic changes in the financial 
 conditions of both Chile and the United States. It has greatly 
 strengthened relations that exist between the two countries in finance 
 and commerce, and it is safe to predict that each will rely upon the 
 other in the future to a much vaster extent than in the past. At 
 present Chile is in a position where she can safely consider the adop- 
 tion of a gold standard and the Chilean Government has already 
 evolved a plan to this effect, including the establishment of a central 
 banking system, fashioned along the same lines as the Federal Re- 
 serve System of the United States. The committee heartily indorses 
 these plans and hopes sincerely that it may be possible to bring them 
 to an early realization. It is with particular gratification that the 
 committee takes notice of the plan of the Chilean people to adopt a 
 gold standard which, in accordance with the recommendations of the 
 International High Commission of 1916, will be a multiple of a coin 
 containing 0.33437 gram of gold, and being 0.900 fine, the latter being 
 approximately 20 cents of the United States dollar. The stability 
 of the Chilean exchange which will follow the adoption of the con- 
 templated central banking system, with a definite gold standard, will 
 greatly facilitate the further development of commercial and financial 
 relations, the growth of which is so earnestly desired by both 
 countries. 
 
 The committee believes that coming years will show a growing 
 intimacy between the banking systems of the two countries. The ac- 
 ceptances available through North American banks for the purpose 
 of financing the increasing trade ought to play a highly important 
 part in this respect. Moreover, it is hoped that when the period of 
 readjustment, in which all nations now find themselves, has passed, the 
 United States will offer a constantly widening market for the secur- 
 ities of American countries. There is all the more reason to expect 
 such a course on account of the fact that not only has the United 
 States become a creditor nation as a consequence of the war but also 
 that European countries, formerly taking a leading part in the de- 
 velopment of this hemisphere, will find an important field of activity 
 in the Old World, where their work of construction and reconstruc- 
 tion will have a first claim on their energies and attention. 
 
90 SECOND PAN AMERICAN FINANCIAL, CONFERENCE. 
 
 LATIN-AMERICAN BANKS IN THE UNITED STATES. 
 
 It is important, however, for the purpose of further strengthening 
 the bonds uniting the Americas that not only North American banks 
 go into South American and Central American countries, but also 
 that steps be taken enabling Latin- American banks to open branches 
 in the United States. Efforts should be made along these lines, and 
 the committee recommends that laws be enacted in the leading States 
 of the North American Union allowing the important Latin- Ameri- 
 can banks to open branches in the United States in a similar manner 
 as North American banks open in Latin- American countries. 
 
 RECOMMENDATIONS TO FOREIGN BANKS OPERATING IN CHILE. 
 
 The Chilean delegation submits the following recommendations 
 affecting the methods of operation of foreign banks in Chile, which 
 this committee approves : 
 
 (a) That foreign banks in Chile when making loans endeavor to 
 do so through the medium of direct obligations with fixed maturities 
 rather than through overdraft in current account running for an 
 indefinite period. 
 
 (b) With respect to credit information the Chilean delegates have 
 suggested that a frank exchange of information be had between the 
 banks of both countries. 
 
 EQUAL TREATMENT FOR DOLLAR AND POUND STERLING. 
 
 The American members of the Chilean group pointed to the fact 
 that the laws of Chile give to the pound sterling the privilege of 
 being accepted as legal tender, and the committee therefore sug- 
 gests that, in view of present conditions and in order to facilitate 
 the development of commercial and financial relations, the dollar be 
 endowed with the same privilege as is now accorded to the pound 
 sterling. 
 
 The committee further recommends that dollar exchange be quoted 
 officially on the stock exchange of Santiago and Valparaiso in the 
 same manner as the pound sterling. The delegates from Chile, 
 agreeing to this recommendation, promised to transmit it to the 
 boards of said institutions with a view to securing favorable action 
 upon the request. 
 
 TRANSPORTATION. 
 
 The effect of the war on transportation facilities and the require- 
 ments of the present and immediate future were fully discussed by 
 the general committee on this topic. Its views were conveyed to the 
 
REPORT OF THE CONFERENCE COMMITTEE CHILE. 91 
 
 Transportation Committee by two delegates duly appointed. The 
 report on transportation will be made to you by the Transportation 
 Committee. 
 
 PUBLIC UTILITIES. 
 
 Your committee has considered what may be done in order to en- 
 courage the flow of capital into Chile for the purpose of developing 
 public utilities and similar projects. 
 
 It has been stated that existing laws, especially in relation to the 
 installation and distribution of electric power, because of the short 
 life allowed for such franchises, do not encourage the fullest possible 
 development of those industries which necessitate large investments 
 of money. The Chilean delegation agreed to this statement, and to 
 the desirability of the modification of the existing laws. 
 
 It was resolved, therefore, that the modification of the Chilean leg- 
 islation on public utilities, especially hydroelectric and electric de- 
 velopments, should be secured, so that franchises would provide for a 
 life of approximately 80 years before installations constructed by pri- 
 vate enterprise would revert to the Government. 
 
 IMPORT ASSOCIATIONS. 
 
 Present American laws have provided measures permitting Ameri- 
 can exporters to organize for the general protection of the interests 
 of the United States. 
 
 Present laws do not provide, however, a like protection for im- 
 porters, inasmuch as they are not permitted to combine for similar 
 purposes. 
 
 It is therefore recommended that American industrial enterprises 
 producing abroad raw materials essential for the industries of the 
 United States be allowed under proper governmental regulations to 
 join organizations formed to promote the production of such raw 
 materials, and it is further recommended that the Webb law be so 
 amended as to permit the entrance of American companies into such 
 associations. 
 
 It is likewise recommended that the Xitrate Producers' Association 
 of Chile establish a committee in New York similar to those now ex- 
 isting in London and Berlin. 
 
 ARBITRATION OF COMMERCIAL DISPUTES. 
 
 As a result of recommendations made by Pan American and Inter- 
 national High Commission conferences, arrangements have been per- 
 fected between chambers of commerce of three Latin- American coun- 
 tries and the United States, providing a machinery for the arbitra- 
 tion and settlement of commercial disputes. 
 
92 SECOND PAN AMERICAN FINANCIAL CONFERENCE. 
 
 Since their organization these arbitration committees have ren- 
 dered excellent services, and the committee strongly urges that prompt 
 steps be taken to perfect similar arrangements between the United 
 States and Chile. 
 
 It is considered advisable that in contracts for the purchase or sale 
 of goods between the countries involved there be embodied a clause 
 providing for such arbitration of any disputes arising with respect to 
 the quality of the goods or the general fulfillment of the terms of the 
 contract. Costly controversies involving loss of time and money may 
 thus be avoided. 
 
 PAN AMERICAN HIGH COURT OF EQUITY. 
 
 A member of this committee, Mr. John Hays Hammond, has sug- 
 gested the idea of creating a Pan American high court of equity to 
 settle commercial disputes. The plan contemplates that this court 
 should hear and determine cases involving solely commercial and 
 financial international relations between Pan American nations. The 
 court is to be composed of judges selected by and representing the 
 various Pan American countries. 
 
 The committee voted to indorse the suggestion, to present it to the 
 Committee on Resolutions, believing that such court, if established, 
 would prove a contributing factor in removing some of the obstacles 
 that may stand in the way of a free flow of capital into Latin Ameri- 
 can countries. 
 
 A careful study of the economic problems of Chile and the United 
 States has not failed to impress anew the minds of the members of 
 this committee that as a matter of geography, of logic, and sentiment 
 the two countries are destined to be drawn into a union of constantly 
 growing importance and intimacy. The Panama Canal has opened 
 the door between them, and even without any special efforts the natu- 
 ral evolution will be in this direction. If, however, the present con- 
 ference and its recommendations should succeed in promoting and 
 accelerating this propitious course, it will be a particular gratifica- 
 tion to the signers of this report. 
 
 Respectfully submitted. 
 
 THE CONFERENCE COMMITTEE FOR CHILE, 
 
 Luis IZQUIERDO, Chairman. 
 
 PAUL M. WARBURG, Vice Chairman. 
 
COLOMB A. 
 
 REPORT OF THE CONFERENCE COMMITTEE. 
 
 The honorable the SECRETARY or THE TREASURY OF THE UNITED 
 STATES. 
 
 SIR: The group conference committee for Colombia, consisting of 
 the delegates from that Republic and the members from the United 
 States, has made a careful study of the topics that were submitted 
 for its guidance and consideration and begs to present the following 
 report of its deliberations on those points that were deemed of 
 especial interest to Colombia and the United States : 
 
 As a result of the European war Colombia has become more self- 
 sustaining. It now produces various foodstuffs that formerly had to 
 be imported in order to supply the domestic needs of the country and 
 is exporting some of these products to neighboring countries. Stimu- 
 lus also has been given to the growth of manufacturing, especially in 
 the line of coarse textiles. 
 
 While there was a noticeable shrinkage in the revenues of the 
 Colombian Government during the period of the war, on account of 
 the decline of imports, upon which duties that constitute the princi- 
 pal source of revenue were levied, the financial position of the Re- 
 public has been in no way impaired. On the contrary, Colombia 
 stands forth as one of the American countries whose financial sound- 
 ness and integrity are beyond question. All obligations have been 
 promptly met, and there is only praise to be accorded to those who 
 have been in charge of the nation's finances. 
 
 On account of the low rate of foreign exchange in Colombia prac- 
 tically all of the gold produced by its mines has remained in the 
 country and is being minted there, increasing thus the amount of 
 gold in circulation. There has been a steadily growing production in 
 practically all lines in Colombia, and the country is more prosperous 
 on account of the higher prices received for its commodities. 
 
 Capital is needed, however, for the enlargement and completion of 
 certain important public projects, in order that the Republic may 
 develop to the best advantage its rich natural resources and foreign 
 trade. The Government of Colombia is particularly interested at 
 present in three classes of public construction enterprises: (1) The 
 improvement of port facilities; (2) the building of railways; and 
 
 93 
 
9 I SECOND PAN AMERICAN FINANCIAL CONFERENCE. 
 
 (3) the extension of sewerage, paving, and waterworks in some of 
 the larger cities. 
 
 In regard to railways, the Government of Colombia wishes to con- 
 fine its efforts at present to extending a line northward from Bogota, 
 the capital, to the head of deep-water navigation on the Magdalena 
 River, and completing the Pacific Railway, which is to .connect 
 Bogota with the port of Buenaventura. Of the latter road, 400 kilo- 
 meters have already been constructed, leaving approximately only 
 300 kilometers to be built. The Government is ready to offer the most 
 ample security to investors who may undertake the financing of these 
 projects, pledging, in addition to the mileage constructed, a proper 
 guarantee from some portion of the national revenues. It is the idea 
 of the Government to carry out this work of railway building gradu- 
 ally, as circumstances may permit, and in accordance with the 
 policy that has made the financial standing of Colombia so secure. 
 
 There is sufficient local capital for the promotion of relatively 
 small enterprises, but not for larger undertakings, such as railway 
 construction, public works, and the development of petroleum lands 
 and mines. Until recently only people of large means were able to 
 share in the ownership of Colombian enterprises. Xow, through the 
 issuance of capital shares in small denominations, opportunities are 
 opened to small investors and advantage is being taken of them. 
 
 Since the Pan American Financial Conference of 1915, banking 
 facilities in Colombia have largely increased. The country's own 
 banks have added very materially to their resources. Three large 
 Xorth American banks also have entered the field with branches in 
 the principal commercial centers. All these have prospered. There 
 is undoubtedly room for still further activities in this line of business. 
 
 The attention of the committee has been directed to certain desir- 
 able changes in banking methods for the facilitation of trade and 
 commerce between Colombia and the United States. Chief among 
 these is the wider use of bank acceptances as embodied in the recom- 
 mendations at the close of this report. Work should be done to 
 arouse general interest in this respect, so as further to encourage the 
 development of commerce. 
 
 Private investment will find a wide field in Colombia. The Re- 
 public is a country of great agricultural possibilities. It possesses 
 immense areas suitable for grazing, conveniently situated with ref- 
 erence to the sea and navigable rivers. Up to the present time it has 
 been possible to export only a small number of cattle on the hoof, 
 principally to the Canal Zone. But with the completion of packing 
 houses, one under construction and one in prospect, Colombia will be 
 in a position to supply the market for canned and refrigerated meats, 
 both in Europe and America. A number of foreign interests are 
 
REPORT OF THE CONFERENCE COMMITTEE COLOMBIA. 95 
 
 now acquiring lands for cattle raising and for sheep raising in the 
 mountain districts. There are many regions in Colombia suitable 
 for the cultivation of sugar cane. One large cane-sugar mill (cen- 
 tral) and several smaller ones are in operation, producing sufficient 
 sugar for domestic consumption. In addition, excellent opportunities 
 exist for those who will engage in this industry for export purposes. 
 Foreign capital will find favorable employment in the development 
 of Colombia's petroleum resources. Much activity is visible in this 
 connection, options having been taken on approximately 900,000 hec- 
 tares (1 hectare 2-J acres of land). The Colombian Government 
 also grants concessions on public lands. These three industries are 
 perhaps the most important as far as new opportunities are con- 
 cerned, but there are many other fields in which foreign capital may 
 profitably engage. Colombia is the largest producer of mild grades 
 of coffee. It is second only to Russia in the production of platinum. 
 It is the sole producer of the finer sort of emeralds. Its coal deposits 
 are quite rich. Colombia is an important exporter of hides, vege- 
 table ivory, tobacco, rubber, bananas, and other tropical fruits. On 
 the basis of present production great possibilities also are offered for 
 the cultivation of long-staple cotton. 
 
 The national debt of Colombia is almost negligible, amounting to 
 only about $3.50 per capita. The fiscal system is now in process of 
 reorganization. Custom duties hitherto have constituted the chief 
 source of revenue, but direct taxes are now beginning to be levied. 
 The first income-tax act of the Eepublic has gone into effect in the 
 present year. The Government expects that the old system of taxa- 
 tion will soon be revised throughout in accordance with modern 
 ideas. 
 
 Colombia is now on a gold basis. Exchange on the United States 
 stands at par, or in favor of Colombia. Taxes are levied by the 
 national, departmental, and municipal governments. They are un- 
 usually low. that imposed on real estate, for instance, being $2 per 
 thousand. The total per capita tax rate of the Eepublic amounts 
 to about $6 per annum. 
 
 One of the results of the war was to reduce the number of steam- 
 ship lines operating to and from European ports, as well as those of 
 the United States. The service of the ships upon which Colombia 
 has to depend is such as to make travel far less attractive than it 
 should be in the mutual interest of both Colombia and the United 
 States. It must be borne in rnind that European steamship lines for- 
 merly plying to and from Colombia are planning to reestablish their 
 service in the immediate future. What is needed, therefore, is faster, 
 more frequent, and better service between Colombia and the United 
 States. Unless this is forthcoming, there is danger that this country 
 
96 SECOND PAN AMERICAN FINANCIAL CONFERENCE. 
 
 will lose much of the trade that it gained during the war, which it can 
 and should hold. 
 
 The Government of Colombia is taking an active interest in the 
 removal of obstacles to navigation and deserves commendation for the 
 excellent progress that it is making in this direction. 
 
 In view of the approaching resumption of service to Colombia by 
 European steamship lines, the committee would also call attention to 
 the fact that such lines will carry freight (as they have in the past) to 
 European ports, approximately twice the distance from Colombia to 
 American ports, at substantially the same freight rates as those 
 charged by American vessels to and from the United States. It sug- 
 'gests, therefore, the advisability of promptly establishing as low 
 rates as possible in order that this European competition may be met 
 before the trade shall have been lost. 
 
 It is gratifying to note that the regulations governing commercial 
 intercourse between the United States and Colombia show a marked 
 spirit of fairness. Taxes on commercial travelers and their samples 
 are nominal, and no difficulties are placed in the way of salesmen's 
 activities. 
 
 Plans for the improvement of cable and telegraph service, as well 
 as for the introduction of the Marconi wireless system, are being 
 worked out, and the committee is informed that satisfactory progress 
 is being made. When this work shall have been completed Colombia 
 expects to have prompt and reliable domestic and foreign communi- 
 cation. 
 
 Colombia is improving its warehouse facilities in the principal 
 ports, and the Government is taking great interest in the further bet- 
 terment of these important aids to commerce. 
 
 Since payment by check was until recently unknown in Colombia, 
 the law had not taken cognizance of the practice; but an act has 
 now been passed, as a result of which it is hoped that the check sys- 
 tem will become widely adopted. 
 
 Colombia, finally, is one of the countries of America which has 
 laws affording adequate protection to the rightful owners of patents, 
 trade-marks, and copyrights. 
 
 In conclusion, the committee desires to submit the following recom- 
 mendations : 
 
 1. That the attention of the various ministries of Colombia be 
 called to^ the desirability of publishing descriptive pamphlets in 
 English for distribution in the United States. Such pamphlets 
 should contain detailed and trustworthy information in regard to 
 petroleum and ore deposits and such industries as cattle raising, 
 sugar, cotton, etc. They should include a brief statement of the 
 laws covering the development of mines and petroleum in prder that 
 
REPORT OF THE CONFERENCE COMMITTEE COLOMBIA. 97 
 
 capitalists in the United States having money to invest in such enter- 
 prises may know under what conditions investments may be made 
 and safeguarded. 
 
 2. That the International High Commission continue its study 
 of the possibility of establishing an international gold clearance 
 fund. 
 
 3. That a Pan-American postal congress be called to frame a con- 
 vention supplementing the postal convention of Montevideo so as 
 to facilitate postal interchange between the Latin American Repub- 
 lics and the United States and to consider changes brought about by 
 modern means of communication. 
 
 4. That those Latin- American countries which have not yet adopted 
 the recommendations of The Hague Conference of 1912 in regard to 
 bills of exchange, checks, etc., be urged to do so. 
 
 5. That the delegates from Colombia bring to the attention of 
 their Government the advisability of modifying the laws governing 
 the shipment of merchandise to that country so as to permit con- 
 signment of goods to order and legalize warehouse receipts. 
 
 6. That measures be taken, through the medium of the Chamber of 
 Commerce of the United States and the Colombian chambers of com- 
 merce, for the arbitration of any commercial disputes between citi- 
 zens of Coldmbia and those of the United States. 
 
 7. It is deemed desirable to add to these recommendations those 
 already submitted to the Transportation Committee, viz : 
 
 (a) For th*e betterment of steamship service between the United 
 States and Colombia, it would be desirable, first, to have American 
 steamship lines now plying to Cuba and Porto Kico extend their 
 service to the Atlantic ports of Colombia ; second, to have American 
 vessels now serving such ports proceed to them directly, instead of 
 indirectly by way of other ports on the Caribbean; and, third, to 
 have American ships now passing through the Panama Canal, to 
 and from the west coast of South America, call at Buenaventura, the 
 chief port of Colombia on the Pacific. 
 
 (b) For the further promotion of oceanic traffic, measures should 
 be taken to remove the sand bar, known as Bocas de Ceniza, at the 
 mouth of the Magdalena River, and carry on such additional dredg- 
 ing as may be required to render it possible for ocean-going vessels 
 to proceed directly up the river to Barranquilla, thus obviating the 
 present necessity of transshipment from steamer to railway at Puerto 
 Colombia. 
 
 (c) In view, also, of the rapidly growing resumption of service by 
 European steamship lines which carry freight to European ports, ap- 
 proximately twice the distance from Colombia to American ports, at 
 substantially the same freight rates as those now charged by Ameri- 
 
 1497021 7 
 
98 SECOND PAN AMERICAN FINANCIAL CONFERENCE. 
 
 can vessels for the conveyance of merchandise to and from the United 
 States, it is desirable, in the interests of the trade between Colombia 
 and the United States, that the freight rates be placed on as lew a 
 basis as possible. 
 
 (d) In the interest of transportation within the interior of Colom- 
 bia, it would be desirable to unite the capital city by rail with the 
 Atlantic and Pacific coasts through the extension of a railway north- 
 ward from Bogota to the most suitable point on the lower Magdalena 
 River and through completion of the Pacific Railway. This work of 
 extension, it is gratifying to note, will be carried on by the Colombian 
 Government gradually, as circumstances may permit, and in a man- 
 ner that will insure the maintenance of the policy which has made 
 the financial standing of Colombia secure. 
 Respectfully submitted. 
 
 THE CONFERENCE COMMITTEE FOR COLOMBIA, 
 POMPONIO GUZMAN, Chairman. 
 WALLACE D. SIMMONS, Vice Chairman. 
 
 
CUBA. 
 
 REPORT OF THE CONFERENCE COMMITTEE. 
 
 The honorable the SECRETARY or THE TREASURY OF THE UNITED 
 STATES. 
 
 SIR: An able and comprehensive memorandum of the secretary of 
 finance of Cuba, especially prepared for this conference, furnished 
 the principal basis for the discussions at the meetings of the Cuban 
 committee. 
 
 The prosperous condition of the island, vividly shown by the 
 memorandum, and the growth of her trade with the United States 
 of America furnish a happy example of the mutual benefits which 
 accrue from the close economic cooperation between the United 
 States of America and the Latin- American countries. 
 
 The problems confronting Cuba are strikingly different from 
 those of the majority of the South American and Central American 
 countries. This is so for several reasons, among which may be 
 mentioned : 
 
 First. The geographical situation of Cuba is such that her rail- 
 ways may be considered, from a physical point of view, as a part of 
 the railway system of the United States of America, being separated 
 by only 90 miles of water, traversed by ferryboats in six hours. In 
 addition there are long-established steamship lines connecting the 
 principal ports of Cuba. The transportation problem, of such vital 
 importance to so many of the countries represented at this confer- 
 ence, is limited, in so far as Cuba is concerned, to the relatively 
 insignificant question of providing better accommodations and facili- 
 ties by the adjustment and speeding up of railroad and boat sched- 
 ules and otherwise for furthering the convenience of the ever- 
 increasing hosts of tourists and travelers. Problems in regard to 
 cables, postal service, wireless and air communication have almost 
 completely disappeared. 
 
 Second. In addition to the intimate physical connection, Cuban 
 political and financial relations with the United States of America 
 are closer than those existing between the United States and the 
 other countries of America. The fact that her coinage is based on 
 the gold standard of the United States of America, whose currency 
 
 99 
 
100 SECOND PAN AMERICAN FINANCIAL CONFERENCE. 
 
 circulates and is legal tender in Cuba, reduces the economic problems 
 to a minimum a far different situation from that which exists be- 
 tween the United States and the adjacent countries of Mexico and 
 Canada or between adjacent countries on the South American Conti- 
 
 The relations between the banking system of Cuba and that of the 
 United States are unusually intimate. Cuban banks, with their innu- 
 merable branches throughout the island, are closely linked with banks 
 in the United States and Canada, either by ownership, affiliation, or 
 long-established daily business contact. In addition, important bank- 
 ing and brokerage firms in Habana keep in constant touch with the 
 New York Stock Exchange in exactly the same manner as do similar 
 houses in the leading cities of the United States. The very rapid 
 growth of banking in Cuba has scarcely given time to work up such 
 close coordination between the different banks as might perhaps be 
 desirable, but it is only a question of time when clearing houses will 
 be established and the banks all found working together for the 
 
 general good. 
 
 Third. The complementary relations between the products of 
 Cuba and those of the United States combine with the geographical 
 situation to make the latter country the greatest market for Cuban 
 products and Cuba a most favorable export market for the United 
 States. Iji 1918 about TO per cent of Cuba's exports went to the 
 United States, from which she bought 72 per cent of her imports. 
 These percentages were undoubtedly increased in 1919, the statistics 
 for which are not yet available. These figures indicate that Cuban 
 agricultural and mineral output is needed in the United States, and, 
 conversely, the agricultural and manufactured articles of the United 
 States are needed by Cuba. This fortunate situation, being natural 
 and not artificial, is bound to endure and augurs well for the con- 
 tinued commercial relations between the two countries. 
 
 Financially, Cuba has prospered during the Great War. For the 
 years 1916, 1917, and 1918 her favorable balances of trade were 
 $106,000,000, $100,000,000, and $113,000,000, respectively, while that 
 of 1919 (the statistics of which have not yet been compiled) is esti- 
 mated at $200,000,000, and for 1920 might even reach $300,000,000. 
 In the invisible balance, expenditures by American tourists help to 
 offset the interests Cuba has to make. Although many of the sugar 
 mills in Cuba are owned by American and English interests, the cane 
 plantations, or " colonias " themselves, are chiefly owned or leased 
 by Cubans ; and the indication in the figures just given of great pros- 
 perity for Cuba is borne out by fact. This is shown not only by the 
 large increase in banking deposits but also in the greatly enhanced 
 value of land in both cities and country, as well as by the construe- 
 
REPORT OF THE CONFERENCE COMMITTEE CUBA. 101 
 
 tion of buildings, highways, railways, and other public and private 
 works. More perhaps than other countries of South and Central 
 America will Cuba have the means to continue the development of 
 her agricultural and mineral resources, although it may take time 
 and effort to divert her capital more fully in this direction. Perhaps 
 the ideal method of development will be the association of Cuban 
 capital and knowledge of local conditions with American investment, 
 experience and knowledge of construction, engineering, and tech- 
 nical problems in general. Further, it is not unreasonable to suppose, 
 in view of her trade balance, large surplus profits, and the fact that 
 she is buying back her own securities that Cuba may even figure as a 
 creditor nation and be in a position, after providing fully for her 
 own requirement, to furnish credit to the outside world. Her bank- 
 ers now have a certain clientele, for whom they deal in non-Cuban 
 investments, including on a large scale United States Liberty bonds, 
 and it would not seem difficult for them to build up, in connection 
 with those in the United States who have had long experience in 
 such lines, the necessary machinery for the sale and distribution of 
 securities. The necessity for inculcating habits of thrift among her 
 people, and, as shown by the memorandum of the secretary of finance, 
 for curbing undue speculation on the one hand and teaching the prin- 
 ciples of sound investment on the other has been appreciated by the 
 Cubans themselves. 
 
 Another fortunate phase of Cuba's recent life is that her Govern- 
 ment has provided in her budget to pay ordinary expenses through 
 taxation instead of by issuing bonds or paper money. In 1917 there 
 was authorized an issue of $30,000,000 of bonds for special war pur- 
 poses, guaranteed by special war taxes, of which $10,000,000 were 
 taken by the United States as a guarantee for a loan. The budget 
 for 1918-19 provided revenues of $64,460,000 to cover expenditures of 
 $62,730,000. Of these revenues $37,000,000 came from custom duties, 
 $15,000,000 from land revenues, and $4,000,000 from the national lot- 
 tery. In fact, the actual revenues exceeded by about $6,000,000 the 
 budget figures. The services of the public debt require only $6,000,- 
 000 for an external debt of $51,500,000 and an internal debt (includ- 
 ing the war debt above mentioned of $30,000,000) of $47,000,000. 
 
 Additional statistics might be presented without end, all demon- 
 strating the able manner in which Cuban officials and private in- 
 dividuals have met the problems of the recent trying years of war. 
 It is safe to assume that they will meet with equal intelligence the 
 perplexing questions which they, together with the countries of the 
 world, are now facing. Her chief economic problems, as suggested 
 above, are due not to poverty but to a plethora of wealth. Wise con- 
 servation of resources to act as a reserve in future times when condi- 
 
 
102 SECOND PAN AMERICAN FINANCIAL CONFERENCE. 
 
 tions may not be as highly prosperous as to-day may confidently be 
 looked forward to. 
 
 In this connection it is worthy to note that as Cuba's prosperity 
 depends so largely on sugar, and that as the United States will pro- 
 vide a market for only two-thirds of the present enlarged production 
 (double that of prewar days), other markets must remain open. 
 The services that Cuba rendered to the Allies during the late struggle 
 should not be forgotten. Among other services, at their behest, she 
 doubled her sugar output in a short space of time, with scarcely any 
 increase in population. The enormous sugar output in proportion to 
 population is w r orthy of attention, indicating a high degree of effici- 
 ency among the mill owners and of industry among the cane planters. 
 -Cuba promptly accepted price regulations for 1917-18 and 1918-19 
 crops, strained her credit to the limit to plant a vast area of land in 
 sugar cane and her present prosperity is thus largely due to her 
 initiative and industry. Under ordinary conditions Cuba can meet 
 her competitors in the markets of the world, but should some of the 
 European countries, in order to help pay their war indemnities, 
 revive their former policy of paying bounties to sugar producers, or 
 unduly aiding them in any way, it would place Cuba and the other 
 sugar-producing countries of America in a most unfortunate posi- 
 tion, which would react seriously on the United States. 
 
 The committee, therefore, desires to call the attention of the com- 
 mittee on form and resolutions to this matter as a subject for con- 
 sideration and makes the following : 
 
 RECOMMENDATIONS. 
 
 I. That it be declared to be the sense of the conference that the 
 Governments of the Pan American countries, individually and col- 
 lectively, should take proper measures to forestall attempts to in- 
 troduce any system of sugar bounties, subsidies, or other artificial 
 devices which would in substance be tantamount to unfair competi- 
 tion. 
 
 II. That the conference urge the advisability of improving tourist 
 accommodations, removing as speedily as possible restrictions upon 
 travelers and taking measures generally for the safety, comfort, and 
 convenience of tourists and travelers. 
 
 III. That Governments and corporations contemplating the estab- 
 lishment of South American steamship lines be urged to take into 
 consideration the advisability of making Cuban cities ports of call 
 in view of the port facilities and extensive commerce of the Cuban 
 Republic. 
 
REPORT OF THE CONFERENCE COMMITTEE CUBA. 103 
 
 IV. That the recommendations of the Pan American Union in re- 
 gard to the deposit and dissemination of official information be ap- 
 proved and acted upon. 
 
 V. The committee feels confident that the Chamber of Commerce, 
 Industry, and Navigation of Cuba, especially in view of the fact that 
 arbitration has already taken place under its rules, will be glad to 
 cooperate in any general movement for the furtherance of commer- 
 cial arbitration, and recommends that it be approached for this pur- 
 pose. 
 
 VI. That the attention of American exporters and manufacturers 
 and of Cuban importers be called to the advisability of routing mer- 
 chandise to Cuba by the most economical lines. 
 
 Respectfully submitted. 
 
 THE CONFERENCE COMMITTEE FOR CUBA, 
 CARLOS MANUEL DE CESPEDES, Chairman. 
 MILTON C. ELLIOTT, Acting Vice President. 
 
THE DOMINICAN REPUBLIC. 
 
 REPORT OF THE CONFERENCE COMMITTEE. 
 
 The honorable the SECRETARY OF THE TREASURY or THE UNITED 
 
 STATES. 
 
 SIR : Whereas from a study of reports and material concerning the 
 Dominican Republic furnished the Conference Committee for ex- 
 amination, and from information supplied by the official delegation, 
 it has been established : 
 
 (a) That the financial condition of the Dominican Republic, as a 
 result of the currency reforms and fiscal system described in the an- 
 nexed report, is excellent, and that the finances are established on a 
 sound basis which will permit the further growth and development of 
 the Republic. 
 
 (b) That the development of the country requires that the Domini- 
 can Government's program of roads, port improvements, and other 
 public works be carried through to a conclusion, and that the negoti- 
 ation of a loan in the amount of $5,000,000, to be secured by a first 
 lien on all the revenues other than the receipts from duties upon im- 
 ports and exports, is justified. 
 
 (c) That the adoption of the proposal of the Dominican Govern- 
 ment that a trade agreement of a reciprocal nature be executed be- 
 tween the Dominican Government and the United States along the 
 lines proposed by it would be of material assistance to both countries 
 in the development of their trade. 
 
 It appears that certain measures should be taken as hereafter enu- 
 merated. 
 
 MEASURES WHICH THE DOMINICAN REPUBLIC SHOULD TAKE. 
 
 1. The abolition of tonnage dues. 
 
 2. The reduction in customs tariff and liberal treatment for 
 
 foodstuffs, chemical products, pharmaceutical products, 
 manufactures of iron, steel, building material, etc. 
 
 3. The abolition of export duties on Dominican products. 
 
 MEASURES WHICH THE UNITED STATES GOVERNMENT SHOULD TAKE. 
 
 1. The admission of Dominican sugar, tobacco, cigars, cigar- 
 ettes, cacao, honey, and castor beans, and other Dominican 
 exports on terms equal to those accorded the Republic of 
 Cuba. 
 
 104 
 
CONFERENCE COMMITTEE THE DOMINICAN REPUBLIC. 105 
 
 It appears that the position of the Dominican .Republic, geographi- 
 cally near to the United States, and to a large extent economically de- 
 pendent upon the United States, and the grave moijal and political 
 responsibilities of the United States toward the Republic, entitle this 
 latter to the concessions requested : 
 
 (d) That the shipping facilities to and from the Dominican Re- 
 public are quite inadequate, for the following reasons : 
 
 1. The passenger steamers employed in the service between 
 the United States and the Dominican Republic are slow, old, 
 and do not afford suitable accommodations for the traveling 
 public. The passenger service between San Pedro de Macoris 
 and New York, with one stop, takes an average of 10 or 11 
 days, as compared with 4J days between New York and San 
 Juan, P. R., approximately the same distance. 
 
 2. Direct communication between New York and Santo Do- 
 mingo depends entirely on one steamship line, and freight rates 
 are extremely high and seemingly based on the maximum that 
 the traffic will bear, rather than upon the basis of a reasonable 
 profit over the cost of operation. This operates as a heavy 
 handicap upon the outgoing and incoming freight of the Domini- 
 can Republic as compared with her nearest neighbors, Cuba and 
 Porto Rico. 
 
 3. An express service from Santo Domingo City and San 
 Pedro de Macoris, on the south of the island, direct to the 
 port of New York would facilitate commerce and reduce the 
 time required for the voyage between the said ports by five 
 days, cutting the present time required for the voyage practi- 
 cally in half. 
 
 4. A freight and passenger service from the port of New 
 Orleans to Santo Domingo would aid the introduction and dis- 
 tribution of American products and manufactures of the South- 
 ern and Middle Western sections of the United States into the 
 Dominican Republic, with profitable return freights of Do- 
 minican products, to the mutual advantage of both countries. 
 
 5. The Dominican Republic is revising its laws relating to 
 shipping and ports to conform to the best modern practice; is 
 engaged upon the improvement of its ports and port facilities, 
 including the deepening of its southern ports ; and tonnage dues 
 will soon be removed : Now, therefore, be it hereby 
 
 Resolved, (1) That this committee indorses the policy heretofore 
 and at present pursued in establishing currency reform and a fiscal 
 system, which has resulted in the present satisfactory financial con- 
 dition of the Republic and which will permit of the further growth 
 and development of the Republic's resources ; 
 
106 SECOND PAN AMERICAN .FINANCIAL, CONFERENCE. 
 
 (2) That this committee heartily indorses the public works pro- 
 gram of the Dominican Government, and believes that the loan pro- 
 posed by the sa^d program is amply justified by the projects and by 
 the condition of the revenues ; 
 
 (3) That this committee is of the 'opinion that the trade agreement 
 proposed by the Dominican Kepublic would be of mutual benefit to 
 the United States and the Dominican Republic, and does hereby 
 recommend it to the favorable consideration of the United States 
 Government ; 
 
 (4) That the committee finds that the Dominican Republic is tak- 
 ing active steps to provide for liberal treatment of shipping and to 
 aid and encourage it in every way; that it is the belief of the com- 
 mittee that the Republic is justified in asking for better steamship 
 service to the United States. The committee therefore recommends 
 that the Shipping Board include in its program the provision for a 
 proper and adequate passenger and freight service from New York 
 and New Orleans with reasonable rates as compared with the neigh- 
 boring islands ; and 
 
 (5) That in view of disagreements arising out of acceptance or 
 rejection of merchandise entering Dominican ports, this committee 
 recommends the establishment at the various ports of boards, named 
 by the respective chambers of commerce or otherwise, to hear such 
 complaints and recommend terms of adjustment. 
 
 Respectfully submitted. 
 
 THE CONFERENCE COMMITTEE FOR THE DOMINICAN REPUBLIC. 
 
 Luis GALVAN, Chairman. 
 
 CHARLES J. RHOADS, Vice 'Chairman. 
 
ECUADOR. 
 
 REPORT OF THE CONFERENCE COMMITTEE. 
 
 The honorable the SECRETARY OF THE TREASURY OF THE UNITED 
 
 STATES. 
 
 SIR: The Ecuador conference committee composed of the official 
 delegation of the Ecuador Government, the special representatives 
 of the Secretary of the Treasury, and the United States members of 
 the group committee, as a result of the committee conferences, begs 
 to submit the following report : 
 
 I. THE EFFECT OF THE WAR ON COMMERCE AND OTHER ACTIVITIES OF THE 
 
 REPUBLIC. 
 
 1. Upon the information submitted to this committee it is of the 
 opinion that the recent European war during its continuance pro- 
 duced the following results in the economic and business interests of 
 Ecuador : 
 
 First, a very considerable stimulation and increase in the country's 
 production of foodstuffs, such as grains, sugar, potatoes, etc., to a 
 point where the country was enabled to raise a surplus sufficient for 
 export; second, a very considerable stagnation in the matter of 
 the import business on account of the scarcity of ocean transporta- 
 tion, and this condition also raised the price of all commodities to 
 the detriment of the purchasing power of the people; third, as a 
 result of both of the foregoing, the Government of Ecuador was 
 prejudiced during the war to some extent in its revenues. 
 
 2. Regarding the urgent present public financial needs, the report 
 of Dr. Luis Felipe Borja, member of the Ecuadorian section of the 
 International High Commission, under date of November 10, 1919, 
 states that a foreign loan of $50,000,000 to $60,000,000 is indispensable 
 to place the country on a sound financial footing, the proceeds to be 
 used to refund the public debt, establish a national bank, to complete 
 the present railroad program, and develop the natural resources of the 
 country. 
 
 Thereupon, after discussion, the following resolution was adopted : 
 
 I Resolved, That the conference committee approves in principle 
 
 the recommendation contained in the report of Dr. Borja, under 
 107 
 
108 SECOND PAN AMERICAN FINANCIAL, CONFERENCE. 
 
 date of November 10, 1919, providing, as it does, for the refund- 
 ing of the present internal and external debt of the Republic of 
 Ecuador as a means to the improvement of the Republic's credit, 
 thereby enabling it to secure the capital required "for the develop- 
 ment of its resources 
 
 II. HOW CAN REQUIRED CAPITAL AND CREDIT FACILITIES BEST BE PROVIDED. 
 
 1. In answer to the question, to what extent these requirements can 
 be met by domestic capital, it was explained by the delegation from 
 Ecuador that a surplus accruing from internal industries in 1919 of 
 approximately $4,000,000 was available for domestic loans. 
 
 2. In answer to the question with regard to what extent foreign 
 capital is required : 
 
 (a) Reference is made to the above-mentioned report of Dr. Borja, 
 Discussion of this question in detail brought out the statement 
 from the delegation from Ecuador that the establishment of an 
 American branch bank or banks in Ecuador would be of great value 
 to that Republic, as its banking facilities are very limited and very 
 expensive. Ecuador has banks for internal business, but needs 
 American banks to assist in credit and commerce. 
 Thereupon the following resolution was adopted : 
 
 Resolved, That this committee recommends to the American 
 banks the desirability of establishing branches in Ecuador to 
 improve credit facilities, exchange, and investment information. 
 (b,c,d) The following resolution was adopted: 
 
 Resolved, That this committee is of the opinion that the exten- 
 sion of our open discount for market acceptances would greatly 
 aid the financing of ^Ecuadorian foreign trade. The education 
 of American investors in the field 'of foreign loans would also 
 aid in a large measure the development of business between Ecua- 
 dor and the United States and likewise result in the encourage- 
 ment of the entrance into Ecuador of United States industrial 
 and commercial companies. 
 
 III. NATIONAL CREDIT AND THE FACTORS AFFECTING IT. 
 
 1. The total foreign debt of Ecuador is 35,206,723.20 sucres (ap- 
 proximately $17,603,362) and the total internal debt 21,000,499.21 
 sucres (approximately $10,500,249). 
 
 The foreign debt is composed of condor bonds issued to liquidate a 
 small balance of the old foreign debt incurred by Greater Colombia 
 at the beginning of the past century ; common bonds issued by the 
 North American Quayaquil & Quito Railroad Co., under contract for 
 the construction of a road, signed June 14, 1897, guaranteed by the 
 Government of Ecuador at 6 per cent annually, later reduced to 5 
 
REPORT OF THE CONFERENCE COMMITTEE ECUADOR. 109 
 
 per cent ; salt certificates issued by the Ecuador Government in pay- 
 ment of three coupons of the common bonds issued by the said rail- 
 road company and guaranteed by the nation. 
 
 At the opening of the group sessions it was announced that the 
 matter of the Guayaquil & Quito Railroad would be excluded from 
 discussion by the group. It was therefore not considered. 
 The following resolution was also adopted : 
 
 Resolved, That the committee approves the recommendation 
 contained in a report of the Chambers of Commerce of Guaya- 
 quil and Quito to the President of Ecuador, dated July, 1917, 
 urging the desirability of increasing the collection of revenues. 
 
 2. The national fiscal system is based on direct and indirect taxes. 
 The principal revenues are those of the customhouse, which are im- 
 port duties, revenue taxes on tobacco and spirituous liquors, and real 
 estate taxes. 
 
 3. Ecuador adopted the gold standard in 1898 and the standard 
 coin minted is called the condor, representing the value of 10 sucres, 
 equal to about $4.86, parity. 
 
 4. Municipal loans are made only by authority of the Central Gov- 
 ernment and are guaranteed by liens on municipal revenues and 
 municipal properties. 
 
 IV. EFFECT OF THE WAR ON TRANSPORTATION FACILITIES. 
 
 Before the war the steamships of the following lines touched regu- 
 larly at Guayaquil, according to the information given us: Pacific 
 Steam Navigation Co., Peruvian Line, Chilean Line, Cosmos Line; 
 and steamships of the following lines touched irregularly, besides 
 tramp steamers occasionally : W. R. Grace & Co.'s Line and Lamport 
 & Holt Line. 
 
 Since 1914 the only steamers calling regularly have been those of 
 the Pacific Steam Navigation Co. It is announced that a steamer of 
 a new line, the Ecuador Line, will shortly begin sailings from New 
 Orleans to Guayaquil. 
 
 In general the service is stated to be the worst in a period of 25 
 years. 
 
 The imports in 1917 and for 10 years previous were $10,000,000 an- 
 nually. 
 
 The exports in 1917 amounted to $16,000,000, an increase from a 
 former average of $12,000,000. 
 
 Due to the changes caused by the war, it is stated that now about 80 
 per cent of the foreign commerce of Ecuador is with the United States, 
 mostly New York. 
 
 In the address of Chairman John Barton Payne, of the United 
 Shipping Board, it was stated that it is designed to run vessels from 
 
110 SECOND PAN AMERICAN FINANCIAL CONFERENCE. 
 
 New York to the west coast of South America, stopping at Callao 
 and other ports to the south, which seems to omit Guayaquil. 
 
 The sentiment of the delegation and group committee as to the 
 shipping needs of Ecuador is expressed by the following resolution 
 duly adopted : 
 
 Whereas the Ecuadorian delegation reports that the port of 
 Guayaquil has for 10 months been free of yellow fever ; and 
 
 Whereas since the beginning of the war the trade between the 
 United States and Ecuadorian ports has increased about four 
 times : Therefore be it 
 
 Resolved, That Ecuador would be greatly benefited by more 
 prompt and regular steamship service between the United States 
 ports and Ecuadorian ports, especially between the ports of New 
 York and Guayaquil; 
 
 Therefore effort should be made to induce the United States 
 Shipping Board and other appropriate agencies to establish 
 regular service as above stated. 
 The following resolution was also adopted : 
 
 Whereas the opinion of the committee, from the information 
 laid before it, is that the future commercial growth of Ecuador 
 is dependent on adequate transportation facilities and the im- 
 provement of the port of Guayaquil : 
 
 Resolved, That the deepening of the Guayas River at certain 
 points to enable the admission of vessels of a larger tonnage and 
 the construction of a dock at Guayaquil of such a nature as 
 to permit bringing vessels of maximum tonnage alongside, thus 
 obviating delays and doing away with the expensive lighterage 
 charges, are two measures of imperative importance. 
 What has been perhaps the chief obstacle to regular shipping, it 
 is stated, has been the presence in the past of yellow fever at Guaya- 
 quil. But this has now been removed. The Government of Ecua- 
 dor, with the assistance of the Rockefeller Foundation, under the 
 personal direction of Gen. Gorgas, has eradicated yellow fever from 
 Guayaquil since March, 1919. 
 
 In view of this important fact it is urgently set forth that the 
 commercial union of Ecuador and the United States be closer bound 
 by an allotment of necessary transportation to carry the commerce 
 of the two countries. 
 
 V. MEASURES TO FACILITATE COMMERCIAL INTERCOURSE. 
 
 1. A convention between the United States and Ecuador concern- 
 ing commercial travelers was signed December 31, 1919, and was 
 approved by the United States Senate and is awaiting action by the 
 Congress of Ecuador. 
 
REPORT OF THE CONFERENCE COMMITTEE ECUADOR. HI 
 
 2. This committee recommends the adherence by Ecuador to the 
 convention to establish an international gold clearance fund. 
 
 3. Inasmuch as there is already in force between the United States 
 and Ecuador a parcel post convention, no action other than a recom- 
 mendation for the improvement of the existing service and a recom- 
 mendation for better packing on the part of shippers from the 
 United States is considered necessary. 
 
 VI. THE DEVELOPMENT OF UNIFORMITY OF LEGISLATION. 
 
 1. The following resolution was adopted by the committee : 
 
 It is urgently suggested to the Government of Ecuador that 
 the recommendations of the meeting of the International High 
 Commission held at Buenos Aires in 1916 in regard to uniform 
 consular invoices be adopted. Also, that a strict enforcement be 
 given to the terms of bills of lading. In connection with this 
 subject it is also suggested that the Republic of Ecuador take 
 under consideration the adoption of a law on bills of lading simi- 
 lar to the act of Congress of the United States (Federal bills of 
 lading act). 
 
 The following resolution was also adopted : 
 
 Resolved, That the committee recommends the adoption by 
 Ecuador of a special law dealing with conditional sales, leases, 
 and chattel mortgages by which the consignor may be more fully 
 protected against sale of the goods by the consignee. 
 
 The chairman laid the following communication before the com- 
 mittee : 
 
 The Director of the Pan American Union most respectfully 
 suggests that each group recommend: 
 
 First. Each Government of the Pan American Union shall 
 arrange that regularly and permanently its various departments 
 and bureaus shall deposit in the library of the Pan American 
 Union two copies of all informative official publications, maps, 
 and other data. 
 
 Second. That each Government consider the advisability of 
 preparing under its direction a comprehensive standard hand- 
 book, in English, describing its financial, commercial, material, 
 and other conditions, to be distributed through the Pan American 
 Union. 
 
 Third. That each Government deposit in the Pan American 
 Union, for exhibit whenever necessary, films descriptive of its 
 life and resources. 
 
 Fourth. That every effort be made by each Government to 
 make the Pan American Union a practical, up-to-date central 
 bureau of information. 
 
112 SECOND PAN AMERICAN FINANCIAL CONFERENCE. 
 
 The foregoing recommendation was upon motion unanimously 
 approved by the committee. 
 
 The committee members representing the United States desire to 
 express in a formal manner its appreciation of the opportunity given 
 by this conference to confer with the delegation from Ecuador in re- 
 gard to the commercial, financial, and other topics of interest and con- 
 cern mutual to our two countries. Not only will practical good fol- 
 low in a material way, but the acquaintance formed will tend to bind 
 our two peoples in those closer bonds of friendship which it is evident 
 that both desire to encourage and which will be of common benefit. 
 The committee appreciates the visit and presence of the distinguished 
 delegates' from Ecuador and considers it an honor to have had the 
 privilege of association with them for the furtherance of good rela- 
 tions. Our best wishes go with them on their return to their native 
 land and we desire, in our capacity as representatives of the people of 
 the United States for the purposes of this conference, that they be ex- 
 tended to His Excellency the President of Ecuador, and the people of 
 that Republic. 
 
 Resolved, That the thanks of the members of the committee be ex- 
 tended to the chairman and vitee chairman of the group committee for 
 the splendid manner, in which the transactions of the group have been 
 conducted and the courtesy extended to all of its members ; and 
 
 That the committee of the Second Pan American Financial Con- 
 ference wishes to record its thanks to Col. George T. Weitzel, of 
 Washington, for the efficient and helpful manner in which he has dis- 
 charged the duties of his office as secretary of the committee. 
 
 Respectfully submitted. 
 
 THE CONFERENCE COMMITTEE FOR ECUADOR, 
 R. H. ELIZALDE, Chairman. 
 E. M. HERR, Vice Chairman. 
 
GUATEMALA. 
 
 REPORT OF THE CONFERENCE COMMITTEE, 
 
 The honorable the SECRETARY OF THE TREASURY or THE UNITED 
 STATES. 
 
 SIR: The group committee for Guatemala has devoted itself to 
 the consideration of the subjects in the program of the Second Pan 
 American Financial Conference, and has the honor to submit the 
 following report, which was unanimously adopted by its members: 
 
 I. THE EFFECT OF THE WAR ON THE COMMERCE AND INDUSTRY, MANU- 
 FACTURING AND MINING, AGRICULTURAL AND PUBLIC UTILITIES OF 
 THE REPUBLICS OF THE AMERICAN CONTINENT. 
 
 The war was the source of many difficulties for Guatemala in that 
 it diminished its imports and reduced the price of its coffee, while, 
 on the other hand, it caused the price of commodities coming from 
 abroad greatly to increase. In 1918 there was a distinct decrease in 
 the capital available for investment in real estate mortgages, whether 
 in national paper currency or in gold currency. Nevertheless, the 
 high prices which coffee has brought since the war are tending to 
 stimulate the development of the coffee industry and the improved 
 plantations already in existence. During the war the Government 
 enacted several laws with a view to encourage further the develop- 
 ment of the natural agricultural resources of the country and to 
 increase the cultivation of those products for which its soil is so 
 excellently suited. The resulting increase in the production of 
 many different articles of consumption offset in a large measure the 
 effects of the war, which were therefore felt less keenly in Guate- 
 mala than in many other countries. 
 
 The most urgent need not only in commerce and industry, but in 
 all branches of the national development, is for foreign capital. 
 Local funds are not readily available for large undertakings, inas- 
 much as available local capital is being absorbed in the process of 
 reconstructing Guatemala City, lately razed; by an earthquakje. 
 Another vital necessity for the development of the commerce and 
 industry of Guatemala is the adoption of the gold standard, and the 
 establishment of an equitable exchange rate for the conversion of the 
 paper currency and its ultimate redemption. 
 
 1497021 8 113 
 
114 SECOND PAN AMERICAN FINANCIAL CONFERENCE. 
 
 II. How CAN REQUIRED CAPITAL AND CREDIT FACILITIES BE PROVIDED ? 
 
 Your committee considered particularly the question of monetary 
 and banking reform, a matter now under serious consideration on the 
 part of the Government of Guatemala. Two projects of reform were 
 considered, of which the first has been drawn up by a commission 
 designated some time ago by the Guatemalan Government for the 
 purpose of establishing a national bank of Guatemala, and the second 
 of which was to be found in the report of Prof. E. W. Kemmerer, 
 prepared at the request of the President of the Republic and deliv- 
 ered to him September 6, 1919. These proposals were found to be 
 similar in character and to differ only in details. 
 
 After sustained and careful review of the two plans, the com- 
 mittee reached the conclusion that, at the present time, a reform of 
 the banking and currency situation of Guatemala could be effected 
 with less difficulty than at any other time in the economic history of 
 the Republic. Nothing less should be undertaken than a complete 
 and thoroughgoing reform, calculated to give the country perma- 
 nently a modern and scientific currency and banking system as good 
 as any in existence. The committee believes that the monetary unit 
 of the Republic should be one-half gram of pure gold, based on the 
 metric system and divided into 10 pesos or 100 centimos, the peso to 
 be worth 10 centimos. This unit would then be worth one-third of a 
 gold dollar of the United States, after adding a slight coinage charge 
 of approximately 0.003. Guatemala should coin on Government ac- 
 count new fiduciary silver coins having a gold value larger than the 
 value of their respective silver content. With a view to preserve the 
 parity of gold new silver coins and the minor coins of bronze, nickel r 
 and copper, the excessive issue of the various classes of coins and de- 
 nominations of money should be prevented by legislation. 
 
 A gold reserve to be known as the gold standard fund should be 
 created by the Government and all coins in circulation should be ac- 
 cepted by the Government in payment of taxes and other Government 
 dues. 
 
 The gold reserve should be a trust fund, separate from other Gov- 
 ernment moneys, and used exclusively for the purpose of maintain- 
 ing the parity of the fiduciary coins with gold. Part of this fund 
 should be kept on deposit under proper security with bankirig 
 houses of high standing abroad. 
 
 The Government should obligate itself to redeem its fiduciary 
 currency fwhen offered in amounts not less than a fixed sum, either 
 in gold or in demand of the gold drafts issued on foreign financial 
 centers in which the gold-standard fund would be deposited. In 
 other words, the fundamental principles of the gold-exchange stand- 
 ard should be followed. 
 

 REPORT OF THE CONFERENCE COMMITTEE GUATEMALA. 115 
 
 For the purpose of placing the currency and banking system of 
 Guatemala upon the most modern and scientific basis, there should 
 be established a national bank, with the powers and duties usually 
 possessed by national banks in other countries. It should have an 
 authorized capital of sixty million gold units ($20,000,000 United 
 States gold), and a paid-up capital of not less than fifteen million 
 gold units ($5,000,000 United States gold). This capital should rep- 
 resent as widespread a financial interest as possible. The bank 
 should be subject to a reasonable kind of Government supervision, 
 and the Government ought to participate in any profits accruing 
 above a fixed percentage of capital. 
 
 The national bank should be given liberal rights of note issue, 
 rights which ultimately ought to be exclusive. The note-issue privi- 
 lege, however, ought to be restricted in such a way as to prevent 
 circulation in excess of three times the amount of the cash paid-in 
 capital. 
 
 The national bank ought to be in a position to make loans to the 
 Government, in the form of advances of its own notes and at a 
 reasonable rate of interest, for the payment of the debts of the 
 Government to the several banks. 
 
 Subject to certain qualifications, the banks now in existence should 
 be required to retire at once the outstanding notes to an amount equal 
 to four-fifths of the sums paid them, respectively, by the Govern- 
 ment in the settlement of its debt to them, provided that notes to an 
 equal amount are outstanding, and provided further, that a limited 
 note circulation be allowed to banks of issue, the charters of which 
 have not expired, for the remaining years of the respective conces- 
 sions. After the expiration of existing charters the national bank 
 should receive the exclusive right of note issue in the Eepublic. 
 Notes of the national bank should be unlimited tender as long as 
 they are redeemable on demand in gold or in its equivalent. 
 
 The national bank should be authorized to make loans, discounts, 
 and rediscounts of short maturities on self-liquidating paper, but it 
 should not be permitted to make capital loans on real estate or on 
 other not readily negotiable securities. 
 
 The national bank, however, should be permitted to advance money 
 on mortgages where guaranty is given by an existing bank, but the 
 funds so employed should be limited to one-third the amount by 
 which the paid-up capital and surplus exceeds 150 per cent of the 
 debt due it from the Government. 
 
 IV. THE EFFECTS OF THE WAR ON TRANSPORTATION FACILITIES, 
 EEQUIREMENTS OF THE PRESENT AND IMMEDIATE FUTURE. 
 
 There should be established one or more lines of vessels between the 
 ports of Guatemala and the ports of other American Republics. The 
 recommendation is offered that, in so far as may be possible, the ship- 
 
116 SECOND PAN AMERICAN FINANCIAL CONFERENCE. 
 
 
 ping companies of the United States reestablish well-fixed routes in 
 existence before the war. 
 
 Your committee is inclined to recommend that the freight rates be 
 restored as soon as possible to what they were before the war, taking 
 into account the increased cost of operation; that steamship com- 
 panies give the greatest care to the good treatment of passengers and 
 that, where necessary, changes be effected to make the trips as com- 
 fortable as possible. In the traffic on the Pacific between the ports 
 of North America and those of South America, it is essential that 
 shipping schedules include ports of Central America. 
 
 It is imperative that those companies of the United States to which 
 commercial and transportation concessions have been accorded should 
 not adopt policies involving discrimination in rates or methods of 
 procedure in respect to the several patrons and localities with which 
 they deal. 
 
 V. MEASURES TO FACILITATE COMMERCIAL INTERCOURSE AMONG THE 
 AMERICAN REPUBLICS. 
 
 The committee believes that, in so far as may be possible, consular 
 and other trade representatives appointed to serve the interests of 
 the United States in Latin America, and vice versa, should be able 
 to speak and write without the aid of an interpreter the language 
 of the country to which they are sent ; and in this way many unnec- 
 essary and vexatious delays and costly misunderstandings will be 
 avoided. 
 
 The committee furthermore believes that it would prove mutually 
 advantageous if there were established on as broad a basis as possible 
 scholarships at the leading universities of the United States for 
 earnest students from the universities of the other American Re- 
 publics, and that, as well, there should be established an annual ex- 
 change of professors between the leading universities of the United 
 States and those of the other American nations. 
 
 The committee also believes that the United States should be urged 
 to consider the advisability of adopting the metric system of weights 
 and measures, which is now in use on the part of the other American 
 Republics and, as well, in almost all the European countries. 
 
 The committee is also of the opinion that the United States should, 
 through the Department of Agriculture, send to the other American 
 Republics from time to time skilled agriculturists and experts in 
 the cultivation of medicinal plants, so as to gather information re- 
 garding the horticultural and agricultural products capable of being 
 produced in the American Republics for food and medicinal or other 
 purposes. 
 
REPORT OF THE CONFERENCE COMMITTEE GUATEMALA. 117 
 
 Your committee likewise feels that the students in our schools 
 and educational institutions ought to be given better and more fre- 
 quent opportunities for agricultural information concerning Latin 
 America, through the display of maps, charts, and diagrams of those 
 countries, so that the future citizens of the United States may become 
 better acquainted with those countries and aware of the advantages 
 of entering into relations with them. 
 
 It is likewise believed by your committee that in order to encour- 
 age, stimulate, and facilitate commerce and intercourse between the 
 American nations, the United States Government ought to be pressed 
 to consider the advisability of establishing free ports or free zones 
 in its great commercial terminal centers; while, on the other hand,, 
 establishment of similar free ports or free zones ought to be recom- 
 mended to the other Republics as well. 
 
 Exporters of the United States should regularly grant to their 
 Latin- American customers terms of credit of not less than 90 days 
 for the payment of merchandise purchased. 
 
 It is also agreed by your committee that agents ought to be sent 
 to Latin America who are not only well acquainted with the manner 
 of presenting their goods, but who also are of such a sort as to pay 
 particular attention to the characteristics of their Latin- American 
 clientele, in order that its requirements may be learned, so as better 
 to promote business intercourse with merchants of the United States. 
 
 The convention to establish an international gold clearance fund 
 has already been signed by Guatemala and the United States. 
 
 VI. THE DEVELOPMENT OF UNIFORMITY OF LEGISLATION. 
 
 The uniformity of customs regulations is a difficult matter to 
 achieve in a practical way because of the different conditions and 
 peculiarities of countries and even of ports. However, by careful 
 study those of the rules and regulations which do not affect in any 
 special way any one of the countries can be reduced to uniformity. 
 In accordance with this belief the Government of Guatemala has 
 sent to the office of the commission at Washington the customs law 
 of 1894, which is now in force. 
 
 Not infrequently it happens that prices given in consular invoices 
 are below those that the merchandise is known to bring in the mar- 
 kets of the country of origin. This should not be so. It is a situation 
 capable of being avoided, if consuls will require that the original 
 commercial invoice be produced and investigate prices in the markets 
 and exchanges. 
 
 For the sake of greater emphasis your committee ventures to repeat 
 the recommendation with regard to uniformity of customs regula- 
 tions and classification of merchandise, which is to be found in the 
 
118 SECOND PAN AMERICAN FINANCIAL, CONFERENCE. 
 
 
 report made by the section of the United States of the International 
 High Commission to the commission at Buenos Aires (Reports of 
 Committees, Washington, 1916, Topic III, pp. 16 and following). 
 
 The laws of Guatemala on bills of exchange, checks, and notes are 
 those of The Hague convention and uniform rules. These laws were 
 approved by the national assembly in decree No. 874, May 12, 1913, 
 and were ratified by the executive power May 30, 1913. Conse- 
 quently that international agreement constitutes the law of Guate- 
 mala in this respect. 
 
 This committee indorses the recommendations of the Internatioi 
 High Commission with respect to Topic 2, section 6. 
 
 A contract covering a consignment of merchandise is generally 
 based on stipulations approved by the parties to the instrument, and 
 also on the usages accepted in the trade. The exportation of the 
 coffee crop and the loans effected on an obligation to consign the prod- 
 ucts which can readily be exported have no appropriate legislation 
 among the commercial laws of the several nations. Those cases for 
 which provision is not made in the contracts usually entered into are 
 decided under general dispositions contained in the codes under the 
 heading " Commission merchants " and " Purchase and sale of condi- 
 tional loans." 
 
 Guatemala has no chamber of commerce. Until this important 
 agency shall have been established, it can not be expected that agree- 
 ments can be entered into between the chambers of commerce of the 
 different countries and Guatemala, nor can the latter Republic co- 
 operate with the others in the development of uniform legislation 
 on the subject of commercial arbitration. 
 
 This committee recommends the establishment of a chamber of 
 commerce in Guatemala with a view to carry out arbitration of the 
 commercial disputes which may arise between persons resident in 
 Guatemala and those living in other American nations, and with a 
 view also to give effect to the important aims generally had by cham- 
 bers of commerce. 
 
 Guatemala has incorporated into her legislation the Buenos Aires 
 trade-mark convention. It has approved and ratified the conven- 
 tion and the result of such action now depends on the functioning of 
 the international office set up at Habana. 
 
 The measures taken for the regulation and protection of art and 
 of literary property rights in accordance with constitutional princi- 
 ples are those embodied in the convention of *Buenos Aires on this 
 subject, and this has already been approved and ratified. The same 
 is to be said concerning patents and industrial models and designs. 
 The Buenos Aires convention on this matter was ratified by Guate- 
 mala May 10, 1912. 
 
REPORT OF THE CONFERENCE COMMITTEE GUATEMALA. 119 
 
 Book III of our Commercial Code is taken up exclusively with sea- 
 borne trade, the persons who take part therein, maritime contracts, 
 the perils of transportation, the subject of insurance and analogous 
 matters. Our Government has concluded conventions and treaties 
 for the protection of its commerce and the regulation of cases of 
 shipwreck and danger. 
 
 The ports of Guatemala are open to the commerce of the world 
 and ships touching them are subject to the following charges: 
 
 United States gold. 
 
 Lighthouse dues $10. 00 
 
 Health certificate 4. 50 
 
 Wharf dues . 50 
 
 Unloading charges (per 1,000 pounds) 1.50 
 
 Loading charges (per 1,000 pounds) 1.00 
 
 At the ports of San Jose, Champerico, and Ocos there have been 
 established private agencies to which dues for services rendered are 
 paid. 
 
 .Respectfully submitted. 
 
 THE CONFERENCE COMMITTEE FOR GUATEMALA, 
 Luis TOLEDO HERRARTE, Chairman. 
 JOHN CLAUSEN, Vice Chairman. 
 
HAITI. 
 
 REPORT OF THE CONFERENCE COMMITTEE. 
 
 
 The honorable the SECRETARY OF THE TREASURY OF THE UNITED 
 
 STATES. 
 
 SIR : The conference committee on the Republic of Haiti, composed 
 of the official delegates of the Republic of Haiti and the American 
 members of the group committee, having met and duly considered 
 the program of topics agreed upon for discussion, has the honor to 
 submit the following unanimous report. 
 
 I. THE EFFECT OF THE WAR ON THE COMMERCE AND INDUSTRY, MANUFAC- 
 TURING AND MINING, AGRICULTURE AJXD PUBLIC UTILITIES OF THE 
 REPUBLIC OF HAITI. 
 
 1. Due to the withdrawal of shipping needed by the nations at war r 
 transportation of practically all products of agriculture which con- 
 stitute the bulk of Haiti's exports, was entirely shut off at the begin- 
 ning of hostilities, with the exception of the limited amount of goods 
 shipped to the United States. The crops of coffee, cotton, and log- 
 wood had to be stored or sold at sacrifice. During the first months 
 of the war there was no incentive to produce more in crops than 
 actually needed for local use. 
 
 To meet the urgent requirements of the United States for castor 
 oil, attention was directed to raising castor beans, and its export was 
 reaching considerable proportions when the armistice closed that 
 channel. 
 
 Logwood production and export reached high figures during the 
 war, meeting a demand due to scarcity of dyestuffs and synthetic 
 dyes. 
 
 Latterly the production of sugar, corn, coffee, cacao, and cotton has 
 increased, interest in agriculture has been stimulated, and a large 
 corporation from the United States has finished the construction of 
 sugar warehouses at Port au Prince. Much land of great fertility 
 and good depth of soil is found in the valley sections. Native labor 
 is pronounced capable, strong, and willing, and can be procured at 
 the^very favorable rate of 2 gourdes per day. 
 
 2. Other than the public debts, external and internal, existing 
 financial obligations are of a private nature and are liquidated in a 
 
 120 
 
REPORT OF THE CONFERENCE COMMITTEE HAITI. 121 
 
 satisfactory manner. Capital is urgently needed for the develop- 
 ment of public utilities, good roads, agriculture, and the varied indus- 
 tries which the country with its wonderful natural resources can sup- 
 port. More American money has been invested in Haiti since the 
 treaty, and particularly since 1916, than ever before. 
 
 The suggestion of the official Haitian delegation that some means 
 of disseminating information in the United States regarding the 
 resources and commercial opportunities in Haiti, by organized 
 propaganda, be established was approved by the conference commit- 
 tee as being one of the best means of attracting capital to Haiti. 
 
 II. HOW CAN REQUIRED CAPITAL AND CREDIT FACILITIES BEST BE 
 
 PROVIDED ? 
 
 1. Domestic capital suffices for the present for the small develop- 
 ment of the agriculture and internal trade relations of the country. 
 
 2. Foreign capital is required for the development of the full 
 natural resources of the island. 
 
 The American Foreign Banking Corporation, the Royal Bank of 
 Canada, and the National Bank of Haiti are established and meeting 
 the present needs of the island, the latter institution maintaining 
 branches in the principal towns on the coast and in the interior. 
 Assurance is given that these banks are abundantly able and willing 
 to extend the fullest facilities to assist in the development of trade 
 and commerce in the Republic as their growth requires. 
 
 III. NATIONAL CREDIT AND THE FACTORS AFFECTING IT. 
 
 The national public debt consists of the external loans of 1875, 
 1896, and 1910, amounting in the aggregate to approximately 
 95,000,000 francs. The loan of 1875 bears 5 per cent interest and 
 is secured by a tax of 33J cents on each 100 pounds of coffee ex- 
 ported from the Republic. 
 
 The loan of 1896 bears interest at the rate of 6 per cent and is 
 secured by the proceeds of a tax of $1.20 gold on each 100 pounds of 
 coffee exported from the Republic.. 
 
 The loan of 1910 bears interest at the rate of 5 per cent per annum 
 and is secured by a tax of $1 gold on each 100 pounds of coffee ex- 
 ported and by a special 15 per cent additional tax, in gold, on the 
 import duties. 
 
 Haiti has established a high record for probity in its service of 
 the public debt. 
 
 Under the terms of the protocol a new currency system has been 
 established, providing a currency secured by a gold reserve of 33J 
 per cent and the balance in two-name commercial paper. 
 
122 SECOND PAN AMERICAN FINANCIAL, CONFERENCE. 
 
 A new loan is now being undertaken to provide adequately for the 
 refunding of the old external and internal loans, the development of 
 internal improvements, particularly highways, irrigation projects, 
 the building of schools and other educational facilities. 
 
 The Haitian Government is undertaking, coincident with its mone- 
 tary reform, a reform of its commercial code and those laws affecting 
 foreign investment in such a way as to make their legal system 
 attractive to foreign capital; the same holds good of the judicial 
 system. 
 
 IV. THE EFFECT OF THE WAR ON TRANSPORTATION FACILITIES REQUIRE 
 
 MENTS OF THE PRESENT AND IMMEDIATE FUTURE. 
 
 During the war ships were very largely taken out of the Haitian 
 trade, and for weeks at a time no ships made any Haitian port. At 
 present the Panama Railroad Steamship Co. and the Royal Dutch 
 Line furnish a reasonable dependable freight and passenger service, 
 but, of course, all cargo space available for Haiti is more or less sub- 
 ject to the demand of more southern countries. Several steamship 
 companies are known to have expressed their willingness to estab- 
 lish routes to Haiti upon the appearance of dependable cargo. Many 
 now make occasional trips, but all at rates that seem high. These 
 rates are probably not excessive by comparison with those to other 
 ports. We would recommend the encouragement of additional and 
 better steamship facilities, and the Haitian Government offers to 
 cooperate with the United States Shipping Board toward that end. 
 
 Interior transportation would best be served by the construction 
 of more complete systems of wagon roads, as the material to be 
 moved, pending further development of the country, is compara- 
 tively light and movable over great distances by the present method 
 of bull carts, burros, individual carriers, and coastwise vessels. 
 
 The laws and regulations regarding transportation both by 
 steamer and by rail are being impnwed, but apparently still remain 
 as a hindrance to the best service. Numerous dues are put upon 
 ocean traffic, such as lighthouse, wharfage, and other port dues, but 
 these are not considered excessive, excepting the lighthouse dues, 
 which will cease to be charged after the 1st of next March, when the 
 original lighthouse concession expires. 
 
 It would appear that a quarantine station should be established 
 at Port-au-Prince as no facilities are now available for disinfecting 
 inbound vessels, which is admitted to be highly important. 
 
 In conclusion, we again mention the necessity of more extended 
 wagon roads over the country as a development that should exceed 
 any additional railroad construction at the expense of the Govern- 
 
 - 
 
EEPORT OF THE CONFERENCE COMMITTEE HAITI. 123 
 
 ment. The building of such wagon roads should be the principal item 
 of Government expense and as the revenues for such purposes are 
 somewhat limited, additional funds should be made immediately 
 .available through the projected loan. 
 
 V. MEASURES TO FACILITATE COMMERCIAL INTERCOURSE AMONG THE 
 
 AMERICAN REPUBLICS. 
 
 The Republic of Haiti desires to adhere to all the measures which 
 are drawn up for the promotion of Pan American relations and will 
 give such measures its most earnest consideration. 
 
 1. The convention concerning commercial travelers. The Haitian 
 Executive has signed this convention, and it will be submitted for 
 ratification at the next meeting of the legislature. 
 
 2. The convention to establish an international gold clearance 
 fund. This convention has been very recently signed by the Haitian 
 Government, and will be submitted for ratification. 
 
 3. Parcel post facilities and lower postal rates. Haiti is a signa- 
 tory to the International Convention of 1907, but would support at 
 this time the recommendations of the International High Commission 
 for an inter- American convention on parcel post, particularly fixing 
 weights, adjusting charges, regulating the size of packages, and the 
 abolition of surtaxes. 
 
 4. Cable facilities; wireless telegraphy. At the present time in 
 Haiti there is a single cable company operating under an exclusive 
 concession. There is also a United States Government wireless sta- 
 tion which accepts commercial messages. The rates on both cables 
 and wireless^ messages are excessive and every effort should be made 
 to bring them to a reasonable basis as an encouragement to larger 
 commercial intercourse. A strictly commercial service is much 
 needed. The Haitian delegation strongly recommends the adoption 
 of a convention based upon the principles adopted at Buenos Aires 
 in 1916 with relation to the establishment of uniform telegraph tar- 
 iffs for American States and cooperation among the States to facili- 
 tate freer cable and wireless communication. 
 
 (5) The establishment of free ports. No proposition has hereto- 
 fore been made or submitted for free ports, but Haiti would be will- 
 ing to consider any proposal which would come to her looking to 
 the establishment of a free port and improved warehouse facilities. 
 
 VI. THE DEVELOPMENT OF UNIFORMITY OF LEGISLATION IN RELATION TO I 
 
 1. Uniform customs regulations; the prevention of the under- 
 valuation of merchandise in export and import declarations. The 
 conference committee agrees with the wish, expressed by the Haitian 
 
124 SECOND PAN AMERICAN FINANCIAL. CONFERENCE. 
 
 delegation, that there should be a uniform regulation of this matter 
 and that the customs regulations be so improved as to render trans- 
 actions as simple as possible, and it believes it is necessary, among 
 other things, that the consular vise on the bill of lading be dis- 
 pensed with as well as on the certificates of origin, and that the only 
 consular vises required should be on the manifest and invoice. 
 
 2. The Haitian delegation believes that the metric system should 
 be adopted in customs transactions. 
 
 3. Contracts regarding the consignment of merchandise in foreign 
 trade and the conditions of acceptance or rejection of merchandise. 
 The Hague rules in regard to such contracts have not heretofore been 
 carried out on account of internal difficulties, but it is the present 
 intention to include the rules suggested by the International High 
 Commission in the revision by Haiti of its commercial code. 
 
 4. Commercial arbitration; agreements between the chambers of 
 commerce of the American Republics, with special reference to the 
 agreements between the Chambers of Commerce of Buenos Aires, 
 Montevideo, and Guayaquil, and the Chamber of Commerce of the 
 United States. The conference committee approves the resolution of 
 the Haitian delegation in favor of adopting a Pan-American con- 
 vention looking toward compulsory arbitration for the settlement of 
 commercial disputes based upon the agreement now existing between 
 the Bourse de Commerce of Buenos Aires and the Chamber of Com- 
 merce of the United States. 
 
 5. Patent and copyright law; the protection of trade-marks, espe- 
 cially through the establishment of the International Trade-mark 
 Bureau at Hob ana and Rio de Janeiro. Copyrights are regulated 
 by a law, adopted in Haiti subsequent to the ratification of the Berne 
 convention of 1884, the same law governing registration of patents. 
 Haiti also has adhered to the Pan-American copyright convention 
 providing reciprocal privileges among the Latin- American Nations. 
 
 The Government of Haiti has adhered to and ratified the con- 
 vention of Buenos Aires on the registration of trade-marks and the 
 law of June 9, 1919, carried this ratification into effect. 
 Respectfully submitted. 
 
 THE CONFERENCE COMMITTEE FOR HAITI, 
 FLEURY FEQUIERE, Chairman. 
 EDWARD HIDDEN, Vice Chairman. 
 
HONDURAS. 
 
 REPORT OF THE CONFERENCE COMMITTEE. 
 
 The honorable the SECRETARY OF THE TREASURY OF THE UNITED 
 
 STATES. 
 
 SIR : The conference committee on matters pertaining to Honduras 
 has the honor to report the following outline of conditions at pres- 
 ent existing in Honduras, an4 which it was the province of your com- 
 mittee to consider with reference to the development of the natural 
 resources of that country, which might prove to the mutual advan- 
 tage of Honduras and the United States, if this could be brought 
 about by cooperation. 
 
 FACTURING AND MINING, AGRICULTURE, AND PUBLIC UTILITIES OF THE 
 REPUBLIC OF HONDURAS. 
 
 The general economic conditions of Honduras have not been im- 
 proved or stimulated to any appreciable extent by the World War. 
 While it is true that the exports of Honduras have steadily increased 
 during the years 1913-14, 1914-15, 1915-16, and 1916-17, amounting 
 in each of such years, respectively, to the. sums of $3,421,331, $3,458,- 
 000, $4,190,565, and $5,353,452, and while it is also true that this in- 
 crease has continued to the present day, yet it is also" true that such 
 increase is rather in the value of the expoits than in the quantity and 
 volume of the goods and products exported. Both the units of pro- 
 duction and the units of export have failed to increase during the 
 above periods, due to many factors, some of which will be adverted 
 to later ; but at this time we will note that the lack of proper ship- 
 ping facilities contributed largely, not only to the arresting of the 
 development of many of the natural resources of the country, but 
 was instrumental, in some instances, in completely paralyzing certain 
 industries. 
 
 Prior to the advent of the World War the steamers of three steam- 
 ship lines touched at the port of Amapala, on the southern or Pacific 
 coast of Honduras, to wit, the Ward Line, the Cosmos Line, and the 
 Pacific Mail Steamship Co. The ships of the first two companies 
 touched at Amapala two or three times a month, while those of the 
 last-named company maintained a fortnightly service. During the 
 war the Ward Co. and the Cosmos Co. withdrew their ships from serv- 
 
 125 
 
126 SECOND PAN AMERICAN FINANCIAL CONFERENCE. 
 
 ice at the port of Amapala, a condition which still exists, while the 
 Pacific Mail Line has continued a very irregular and unsatisfactory 
 service and schedule, its steamships touching at said port sometimes 
 once a week and sometimes once a month. 
 
 Your committee is not aware of the reason for the above-noted 
 irregularity in the schedule of this last-named company. 
 
 The withdrawal of shipping facilities, such as they had been, 
 from the port of Amapala resulted in the inability of the people 
 who inhabited and cultivated the large southern zone, which natu- 
 rally looks to that port for purposes of exportation, to export any 
 perishable or semiperishable products, and resulted also in the com- 
 plete stoppage of the exportation of timber through this port. This 
 naturally resulted in the loss of much revenue to the Government 
 and also to the people engaged in such industries in that particular 
 section of the country. On the other hand, the World War did not 
 affect and has not affected sea-transportation facilities between the 
 ports of Honduras, situated on the northern or Atlantic coast, and the 
 United States to as great an extent as on the Pacific coast. The ex- 
 ports through the Atlantic ports have continued much the same in 
 quantity and character as they were prior to the war, and their value 
 steadily increased in keeping with the general advance in the price 
 of commodities throughout the world. In a general way it may be 
 said, however, that what Honduras has gained in the value of its ex- 
 ports through its Atlantic ports it has lost through the reduction in 
 quantity of its exports through the port of Amapala. This condi- 
 tion is susceptible of easy remedy the establishment of the proper 
 shipping facilities at Amapala, either by allocating new ships to that 
 port or by increasing the number of ships of the Pacific Mail Co. 
 which call thereat, and by Jiaving a regular and permanent schedule 
 of. sailings therefrom. 
 
 Your committee, therefore, begs to report in reply to inquiry No. 
 
 I, Title I, that the World War has not resulted in any appreciable 
 increase in the development of the domestic resources of Honduras 
 so as to create a greater economic independence. 
 
 As to inquiry No. 2, Title I, in the special case of Honduras, your 
 committee is of the opinion that the answer thereto involves the 
 consideration of matters not within its province. 
 
 As to inquiry No. 3, Title I, we beg to refer to that part of this 
 report comprehended under Title IV. 
 
 II. HOW CAN REQUIRED CAPITAL AND CREDIT FACILITIES BEST BE PRO- 
 
 VIDED ? 
 
 Your committee begs to report, in reply to inquiries 1 and 2 undei 
 this title, that it is very apparent that in Honduras sufficient domestic 
 capital is not available for the development of the natural resources- 
 
REPORT OP THE CONFERENCE COMMITTEE HONDURAS. 127 
 
 of the country, but that the Government of Honduras is endeavor- 
 ing by every fair and equitable means to encourage the investment 
 of foreign capital in such development. The many natural resources 
 of Honduras, rich as it is in minerals, such as gold, silver, copper, 
 iron, coal, marble quarries, opals, platinum, aluminum, and petro- 
 leum; and in timber and valuable woods, such as cedar, mahogany, 
 balsam, rosewood, and many other hardwoods, offer a particularly 
 attractive field for the investment of capital. The fertile soil of the 
 country makes it susceptible of easy cultivation and abundant pro- 
 duction, and Honduras is particularly rich in its grazing lands, 
 making it capable of supporting millions of live stock more than at 
 present exist. 
 
 As to subdivisions A, B, and C, under inquiry No. 2 of Title II, 
 the committee reports that at present Honduras enjoys fair banking 
 facilities, which, however, would have to be improved and enlarged 
 upon the investment of any great amount of capital in the develop- 
 ment of the resources of the country. In this regard the use of ac- 
 ceptances should be inaugurated and encouraged, and the Govern- 
 ment stands ready to render encouragement to any improvement 
 upon present banking facilities. 
 
 At present no market exists in Honduras for the distribution of 
 foreign government and corporate securities. 
 
 There is no room for the investment of capital in foreign enter- 
 prises, as it is required for the home country itself. 
 
 I III. NATIONAL CREDIT AND THE FACTORS AFFECTING IT. 
 
 Referring to inquiry No. 1 under this title, your committee is 
 pleased to report that the condition of the internal debt of Honduras 
 is satisfactory and is improving, having undergone a reduction since 
 1914. In regard to the external debt of Honduras, the committee is 
 again of the opinion that this involves consideration of matters not 
 within its province. 
 
 Inquiry No. 2 : Honduras is working under a good budget system. 
 Its sources of revenue are duties on imports and exports, with a 5 
 per cent (gold) surtax on imports and there also exists a system of 
 excise and personal taxes. The net revenue of the country has de- 
 creased practically $1,000,000 between 1914-15 and 1917-18, owing 
 largely to insufficient shipping facilities. 
 
 As to inquiry No. 3 of this title, it is the constant effort of the 
 Government of Honduras to place the country upon as solid a finan- 
 cial basis as possible, to have it harmonize, as far as practicable, with 
 the fiscal systems which obtain in the other countries of America. 
 Toward this end Honduras has declared United States currency legal 
 
128 SECOND PAN AMERICAN FINANCIAL, CONFERENCE. 
 
 tender, at the rate of exchange of 2 to 1, and Honduras to-day is 
 practically upon a gold basis. 
 
 As to inquiry No. 4, the committee finds that the Provinces of 
 Honduras are not empowered to create debts, but that the munici- 
 palities may contract loans with the approval of the General Govern- 
 ment. The principal and interest of such loans is provided for under 
 the general taxing powers of the municipal government. 
 
 IV. THE EFFECT OF THE WAR ON TRANSPORTATION FACILITIES; REQUIRE- 
 MENTS OF THE PRESENT AND IMMEDIATE FUTURE. 
 
 As to No. 1, the committee believes it has fully set forth the facts 
 pertinent thereto in its statement under Title I, in so far as sea trans- 
 portation is concerned. As to No. 2, it is the opinion of the delegates 
 from Honduras, and your committee concurs in the same, that for the 
 present there is nothing to suggest in this regard. As to No. 3, your 
 committee can speak generally as to the great importance of this 
 topic, but has no specific recommendation to submit in regard to 
 Honduras, other than the presentation of actual conditions in that 
 country respecting land transportation and the crying need for its 
 immediate development. 
 
 If an opportunity is to be given to the inhabitants of Honduras 
 to develop the many rich and natural resources of the country, it 
 is essentially necessary that there exist a trunk line or road con- 
 necting the coast on the Atlantic side with the coast on the Pacific 
 side. At present there exists an excellent macadam road between 
 the capital city of Tegucigalpa and San Lorenzo, on the Bay of Fon- 
 seca, thus giving the capital access to the port of Amapalpa, on the 
 Pacific. From the city of Tegucigalpa northward in the general di- 
 rection of Puerto Cortes, there is an excellent macadam road as far 
 as the town of Comayagua, a distance of about 100 miles. From 
 Puerto Cortes there exists a railway, the Ferrocarril Nacional, run- 
 ning as far as La Pimienta, a distance of about 56 miles. By con- 
 necting La Pimienta with the terminus of the macadam road at 
 Comayagua by means of the construction of a macadam road be- 
 tween these two places, the much-desired, long-prayed-for, and im- 
 peratively required trunk line from coast to coast would become a 
 reality, and Honduras would be placed in a position which would 
 make it possible for its people to develop the natural resources of 
 the country an opportunity never before enjoyed. This road be- 
 tween La Pimienta and Comayagua, the building of which is urgently 
 recommended by your committee, would be about 135 miles in length. 
 Its construction is just as important, in the opinion of your com- 
 mittee, to the development and progress of the commerce and life 
 of Honduras as the improvement of shipping facilities. It is abso- 
 
REPORT OF THE CONFERENCE COMMITTEE HONDURAS. 129 
 
 lutely necessary, in connection with the establishment of steamship 
 facilities, to provide good roads in the interior and all facilities at 
 the ports for loading and unloading. We summarize this by saying : 
 
 Necessity No. 1. Excellent interior macadam roads for the trans- 
 portation of products to the ports ; 
 
 Necessity No. 2. Improved shipping facilities at Atlantic and Pa- 
 cific ports ; 
 
 Necessity No. 8. All necessary facilities for loading and unloading. 
 
 In this connection the committee incorporates the following reso- 
 lution which was adopted at its conference : 
 
 Resolved, That it is the sense of this committee sitting on the 
 - affairs of Honduras to state their position in the following 
 manner : 
 
 We consider it an imperative duty on the part of the United 
 States and its citizens to give every possible encouragement to 
 the establishment of a steamship line between the United States 
 and Central and South American countries. We consider these 
 steamship lines shall be organized, in the first place, for the pro- 
 motion of personal travel, so as to allow the citizens of all coun- 
 tries to become personally acquainted with the features of the 
 respective countries; and in the second .place, we consider it 
 of the utmost importance that the commercial intercourse be 
 promoted in every possible way between the countries of Central 
 and South America and the United States. 
 
 We regard this step as not only important for the interests 
 of the Central and South American countries, but as import- 
 ant for the manufacturing and commercial interests of the 
 United States. 
 
 Important facilities for the interchange of commodities between 
 the respective countries are very essential for friendly and profitable 
 relationship between all our countries. 
 
 However, we can not but recognize that the promotion of steamship 
 facilities is a vain act if conditions in a country are such as to make 
 it impossible for that nation to transport its products to the ports 
 for exportation. Hence, having in mind the special conditions which 
 now obtain in Honduras, we heartily concur in and adopt the follow- 
 ing recommendation presented by the delegates from Honduras to 
 the Committee of Transportation. 
 
 1. With the purpose of making effective such water transpor- 
 tation facilities as may now or in the future exist in connection 
 with the commercial intercourse between our country and the 
 United States of America and other nations, we believe that 
 facilities for land communication should be developed simulta- 
 1497021 9 
 
130 SECOND PAN AMERICAN FINANCIAL CONFERENCE. 
 
 neously, for without the latter facilities for maritime transporta- 
 tion such as this conference had in mind would avail us little. 
 
 Therefore, having in mind the peculiar circumstances or con- 
 ditions of our country, its small population, and consequently its 
 small production, it would not be possible for it to construct and 
 maintain railway lines which require an investment of large 
 amounts of capital for their construction, and a large quantity 
 of traffic for their maintenance or support; therefore the dele- 
 gation from Honduras is of the opinion that for the present it 
 should limit its aspirations in this regard to the construction of 
 good roads, which would permit the development of the natural 
 resources of the different sections of the country, and which 
 would give exit to the products of the country to foreign markets. 
 In order to realize this object, our Government would study a 
 comprehensive plan of the various routes which would be opened 
 in order to place in communication with each other the different 
 sections of the interior with ports and would accept any equitable 
 . arrangement for acquiring funds necessary for this purpose. 
 
 2. With reference to the maritime service or transportation, 
 this delegation suggests the necessity for improvement on the 
 Pacific literal or coast of our country by increasing the number 
 of steamships of the present line or by establishing a new line, 
 so that there may be a fixed and permanent schedule of at least 
 weekly sailings between Panama, Amapala, and San -Francisco, 
 and further there should be established a line of steamships with 
 direct sailings between New York and the various ports of the 
 northern or Atlantic coast of Honduras. 
 
 The committee is strongly of the opinion that proper measures 
 should be taken as soon as possible looking to the linking up of the 
 present gap between the terminus of the National Railroad and the 
 macadam road (carretera) running from Tegucigalpa toward the 
 Atlantic coast, thus connecting the port of Puerto Cortes, on the 
 Atlantic coast, with the port of Amapala, on the Pacific coast, by a 
 central highway or trunk line. 
 
 The great possibilities which seem apparent in the country of 
 Honduras after development of its railroads and its country-road 
 facilities will find their proper outlets when sufficient shipping facili- 
 ties have been allocated to the ports on the Pacific, as well as the 
 Atlantic Ocean sides. In making this recommendation we desire 
 to say that it is useless to duplicate facilities on the Atlantic Ocean 
 side, but to give every possible attention to the increase of facilities 
 on the Pacific Ocean side, particularly at the port of Amapala, and 
 we recommend that regular sailing and permanent schedules be estab- 
 lished, so as to foster the enlargement of the trade between Honduras 
 and the United States. 
 
REPORT OF THE CONFERENCE COMMITTEE HONDURAS. 131 
 
 The committee tenders its hearty support to the plan which is 
 being considered for establishing a Pan American railroad through 
 Central and South America and the building of a link for this rail- 
 road across Honduras, crossing through the towns of Nacaome and 
 Choluteca. 
 
 V. MEASURES TO FACILITATE COMMERCIAL INTERCOURSE AMONG THE 
 
 AMERICAN REPUBLICS. 
 
 As to No. 1 under this title, the committee finds that laws and 
 regulations referring to commercial travelers at present existing are 
 entirely satisfactory. As to No. 2, the committee wishes to express 
 its approval of the establishment of an international gold clearance 
 fund. As to No. 3, the committee suggests that every possible 
 facility be given by the postal department to the establishment of 
 low postal rates for parcel post facilities, as well as regular postal 
 rates for mail dispatch, in order to increase in every possible way 
 the business relations between Honduras and the United States, and 
 this committee further recommends the adoption of an international 
 return postage stamp system instead of the existing coupon system. 
 As to No. 4, the committee strongly recommends that the establish- 
 ment of wireless, cable, and telegraphic facilities for the public trans- 
 mission of messages on lines that would best promote the commer- 
 cial and social intercourse between nations and their citizens should 
 be encouraged by all Governments. As to No. 6, the committee takes 
 pleasure in reporting that the warehouse facilities are considered 
 sufficiently good. 
 
 VI. THE DEVELOPMENT OF UNIFORMITY OF LEGISLATION IN RELATION TO 
 
 UNIFORM CUSTOMS REGULATIONS, ETC. 
 
 As to No. 1, your committee is informed, and so begs to report, that 
 the Government of Honduras stands ready to cooperate by every 
 means in its power in the adoption of laws and regulations calcu- 
 lated to bring about uniformity of customs regulations. So far as 
 the State of Honduras is concerned, its tariff laws are uniform 
 throughout the country and its tariff duties are not based upon the 
 ad valorem system, but rather on the weights and measures system,, 
 leaving but little opportunity for the undervaluation of merchan- 
 dise, either in export or import declarations. 
 
 As to No. 2, your committee suggests that it is highly desirable 
 that Honduras adopt the United States negotiable instruments act 
 and suitable rules and regulations similar to those of the United 
 States and some Central and South American Republics in regard 
 to bills of lading and warehouse receipts. 
 
132 SECOND PAX AMEEICAX FINANCIAL, CONFERENCE. 
 
 As regards No. 3, the committee reports that it is of the opinion 
 that the existing laws of Honduras with reference to contracts 
 regarding consignments of merchandise and foreign trade and the 
 conditions of acceptance or rejection of the same are fair and just, 
 and that the Government has always shown a willingness to coop- 
 erate in the adoption of any law tending to promote trade and 
 justice in commerce. 
 
 As to No. 4, the committee recommends that Honduras place 
 itself as speedily as possible in line with the system adopted by 
 the Chambers of Commerce of Buenos Aires, Montevideo, and 
 Guayaquil and the Chamber of Commerce of the United States 
 concerning commercial arbitration. 
 
 As to No. 5, your committee finds that in regard to patent and 
 copyright law and the protection of trade-marks, Honduras has 
 joined the International Trade-Mark Bureau of Habana, and it 
 recognizes the importance of protection for inventors and owners 
 of copyrights and trade-marks in the States of Honduras and the 
 United States. 
 
 As to No. 6, the committee reports that its information is that 
 the existing admiralty laws, in so far as Honduras is concerned, 
 are entirely satisfactory, and that it has been unable to learn of any 
 instance in which they have proven unsatisfactory. 
 
 Your committee further begs to report that it has adopted the fol- 
 lowing resolution : 
 
 At the suggestion of the Director General of the Pan American 
 Union, the committee recommends that- 
 First. Each Government of the Pan American Union shall 
 arrange that regularly and permanently its various departments 
 and bureaus shall deposit in the library of the Pan American 
 Union two copies of all informative official publications, maps, 
 and other data. 
 
 Second. That each Government consider the advisability of 
 preparing under its direction a comprehensive standard hand- 
 book in English describing its financial, commercial, material, 
 and other conditions, to be distributed through the Pan Ameri- 
 can Union. 
 
 Third. That each Government deposit in the Pan American 
 Union, for exhibit whenever necessary, films descriptive of its 
 life and resources. 
 
 Fourth. That every effort be made by each Government to 
 make the Pan American Union a practical, up-to-date central 
 bureau of information. 
 
 Your committee is of the opinion that the problems of Honduras 
 do not appear difficult of solution. In many respects they are similar 
 
REPORT OF THE CONFERENCE COMMITTEE HONDURAS. 133 
 
 to those of other Central American countries. All can be settled 
 expeditiously and effectively under the impetus of a comprehensive 
 plan of development energetically carried forward and sustained by 
 the rich resources of these countries and by the splendid devotion 
 of their peoples to the advancement and welfare of their respective 
 nations. 
 
 It has been suggested, however, that there is something more im- 
 portant at this time to assure the establishment of enduring busi- 
 ness relations between North and South and Central America, in- 
 cluding the West Indian countries, than purely material aid. This 
 something more is unquestionably a closer fraternal relationship, a 
 better understanding and higher appreciation of the manners and 
 customs of Latin Americans and an unreserved acceptance thereof 
 as essential to unrestrained social and commercial intercourse. 
 
 We recognize the peoples of these countries as worthy of the high- 
 est respect and profoundest admiration. Their dignity, intellec- 
 tuality, industry, and patriotism have won for them the warmest 
 regard and fullest confidence of the peoples with whom they have 
 been brought into more intimate relations. We submit that it is 
 necessary to the strengthening of the present association of the north 
 and the south that this subject be given careful consideration, and 
 that a more respectful attitude be substituted for the indifference 
 too often manifested toward the southern peoples. 
 
 As a means to this end we recommend that the characteristics 
 of Latin American life be made a topic of special study in the 
 schools and colleges of the United States, and that the Govern- 
 ment of the United States cooperate with the Latin American 
 Republics in establishing at some suitable place a Pan American 
 University, where students from the United States and students 
 from Latin American countries can be brought into intimate 
 association and receive the fullest instruction in all matters per- 
 taining to their respective nations. 
 
 Your committee has refrained from entering into statistical matter 
 and data, as it is available in numerous pamphlets and books on 
 Honduras on file at the Pan American Union Building, which any- 
 one interested in the subject may secure. 
 
 The undersigned committee unanimously submits this report to 
 the Pan American Financial Conference and recommends that it be 
 referred for further consideration and action to whatever body is 
 created or may already exist for the purpose of giving effect to the 
 proceedings of this conference. 
 Respectfully submitted. 
 
 THE CONFERENCE COMMITTEE FOR HONDURAS, 
 JUAN E. PAREDES, Chairman, 
 JOHN W. THOMAS, Vice Chairman. 
 
MEXICO. 
 
 REPORT OF THE CONFERENCE COMMITTEE. 
 
 The honorable the SECRETARY OF THE TREASURY or THE UNITED 
 
 STATES. 
 SIR : Your committee has the honor to submit the following report : 
 
 ORGANIZATION. 
 
 * 
 
 The organization of the Mexican conference committee was ef- 
 fected at its first meeting by the election of Mr. K. S. Brookings as 
 permanent chairman. Mr. Brookings invited his excellency Am- 
 bassador Bonillas to act as chairman of the conference, which Mr. 
 Bonillas declined to do. At the suggestion of the ambassador from 
 Mexico, the proceedings followed in accordance with the final 
 program. 
 
 EFFECT OF THE WAR ON MEXICO'S TRADE. 
 
 The war considerably restricted the imports of Mexico, making 
 her more extensively dependent upon the United States. At the 
 same time, Mexico w r as obliged to market her output almost exclu- 
 sively in the United States, owing to the shortage of transportation 
 facilities. The cutting off of her exports seriously hampered her 
 agricultural development. The restrictions of the War Trade 
 Board, and especially those inspired by the enemy trading list, had 
 the effect of reducing her commerce, and at the same increased the 
 difficulties attendant upon trade. It was shown effectively that the 
 real cause of Mexico's difficulties during the war lay in the fact that 
 she did not have an adequate merchant marine of her own. 
 
 SEA TRANSPORTATION. 
 
 
 An address was given by Dr. Carbajal on sea transportation, 
 showed that owing to lack of material resources Mexico's shipping 
 facilities had never been sufficiently developed, consequently the war 
 found a great scarcity of ships plying between Mexico and the 
 United States. The result of these conditions was that land trans- 
 134 
 
REPORT OF THE CONFERENCE COMMITTEE MEXICO. 135 
 
 portation was resorted to more extensively than ever before, and 
 what overseas shipping was carried on was done almost entirely by 
 such American ships as were allocated to the Mexican runs and by 
 foreign ships. Mr. Carbajal described the service at present existing 
 on the east and west coasts of Mexico, showing that all lines are for- 
 eign with the exception of two or three insignificant Mexican com- 
 panies with an aggregate tonnage of about 45,000. Mr. Carbajal ex- 
 pressed regret that Mr. John Barton Payne, in his address of last 
 evening, said nothing which foretold any considerable development 
 of Mexican shipping or any intention on the part of the American 
 Shipping Board to give Mexico any better service. Mr. Carbajal 
 suggested the desirability of the establishment of a service through 
 the Panama Canal connecting the Gulf of Mexico with the Pacific. 
 At present, passengers from Mexico for Pacific ports find it neces- 
 sary to go to the United States in order to obtain a boat for the 
 Pacific coast of Mexico. In view of the fact that 96 per cent of 
 Mexico's trade is with the United States, Mr. Carbajal felt justified 
 in recommending that the United States give special attention to 
 Mexico's needs. The speaker also showed that there is a higher 
 proportionate freight rate between Mexican and American ports 
 than between American ports and other ports of the world. He 
 showed that the rate between Salina Cruz and San Francisco is 
 higher than the combined railroad and steamship rate between Chi- 
 cago and Yokohama. Mr. Carbajal stated that one of the causes of 
 the high freight rate charge on goods shipped to Mexico was the fact 
 that American railroads quote local rates for shipments to Mexico 
 rather than through rates. Mr. Carbajal discused the subject of 
 the coastwise trade, showing the necessity of developing same and 
 pointing out the dependence of this trade on international commerce, 
 it being true, he said, that goods can not be exported when there are 
 no local boats available to carry goods from the smaller ports to 
 exporting ports. Mr. Carbajal pointed out that there was a good 
 field for American enterprise in the Mexican coastwise trade, but 
 that in order to go into this business it is necessary for a foreign 
 company to incorporate under the Mexican law, since foreign ships 
 are only permitted to carry goods between the international ports 
 of Mexico. 
 
 RAILROAD TRANSPORTATION. 
 
 Mr. Sobral briefly discussed the railroad situation in Mexico, point- 
 ing out that about 70 per cent of the traffic between Mexico and the 
 United States is carried by rail. Fifty-one per cent of the total capi- 
 tal invested in the Mexican railroads is controlled by the Government. 
 
136 SECOND PAN AMEKICAN FINANCIAL. CONFERENCE. 
 
 The gross earnings of Mexican railroads for the following typical 
 years is given by Mr. Sobral : 
 
 Gold pesos. 
 
 1918 : 66, 000, 000 
 
 1908 53, 000, 000 
 
 1910 61, 000, 000 
 
 1911 62, 000, 000 
 
 1912 61. 000, 000 
 
 PUBLIC DEBT. 
 
 At the afternoon session of Tuesday, January 20, Dr. Sobral dis- 
 cussed the financial situation of Mexico and the means of funding 
 the Mexican public debt. He outlined the various items of the na- 
 tional debt, these being mainly the original foreign loans to the Gov- 
 ernment with interest pledged on same, fiat paper money, indebted- 
 ness covering the reserves of banks seized by the Government, losses 
 caused to individuals by the revolution, and debts incurred by Madero 
 and Huerta. He estimated the total public debt of Mexico at 894,- 
 130,000 pesos Mexican gold. 
 
 This debt is guaranteed by 62 per cent of the total customs duties, 
 but this part of Mexico's obligations has not been met. So impor- 
 tant is it considered that Mexico should make a beginning in the 
 payment of her debt that for 1920 she has set aside the sum of 10,- 
 000,000 pesos to be paid thereon. 
 
 FEDERAL REVENUES. 
 
 The import and export duties aggregate 49,000,000 pesos a year. 
 The Mexican export duty is a new emergency source of income, origi- 
 nating with the needs of the Carranza Government. Consular fees 
 aggregate 6,000,000 pesos a year, and other sources of federal income 
 are the stamp tax on gross sales, the inheritance tax, tobacco tax, tax 
 on alcoholic beverages, tax on cotton manufactured products and sil- 
 ver. The petroleum tax in 1918 yielded 14,000,000 pesos, and 8,000,000 
 for the first six months of 1919. A mining royalty tax yielded 
 2,000,000 pesos. The total estimate for federal revenues in 1920 is 
 170,000,000 pesos. The largest single item of expenditure of the Mex- 
 ican Government is for naval and military defense, on which, in 1919, 
 120,000,000 pesos were spent. 
 
 The revenues of Mexico have not been adequate to pay the national 
 debt, nor are they even adequate to meet guaranteed expenses, as is 
 shown by the fact that the salaries of Government officials and em- 
 ployees in Mexico are not paid in full, only f 5 per cent of same being 
 so paid, the remaining 25 per cent being given employees in nontrans- 
 ferable Government bonds, the holders of which thus become creditors 
 of the nation. 
 
REPORT OF THE CONFERENCE COMMITTEE MEXICO. 137 
 
 FINANCIAL NEEDS OF MEXICO. 
 
 Mr. Sobral enumerated what he considered as the most urgent 
 financial needs of Mexico, which are 
 
 1. The establishment of a sole bank of issue, 
 
 2. The establishment of a mortgage bank, and 
 
 3. The creation of an agricultural bank to establish rural credits. 
 The aggregate of these three propositions presents a requirement of 
 
 1,000,000,000 pesos. The example of the United States, however, in 
 the creation of its successful Federal Reserve System, with an initial 
 capital of $50,000,000, which has since grown to have a paid-up capi- 
 tal of $75,000,000, was urged by Mr. Williams as a possible proof that 
 the banking needs of Mexico did not require so extensive a sum as 
 Mr. Sobral estimated. 
 
 Other needs are the construction oi railroads from Yucatan to' 
 Tehuantepec, Mexico City to Pacific ports, and harbor improvements 
 at such points as Progreso, Tuxpan, and Tampico. 
 
 So impressed was the group conference with Mr. Sobral's presen- 
 tation of the financial needs of Mexico that it was resolved that he 
 be requested to present this subject to the general conference in an 
 address of not less than 20 minutes' duration on Thursday afternoon, 
 January 23. 
 
 MEANS FOR FACILITATION OF COMMERCIAL INTERCOURSE BETWEEN UNITED 
 
 STATES AND MEXICO. 
 
 Ambassador Bonillas expressed the opinion that Mexico would be 
 willing to enter into arrangements with the United States Govern- 
 ment with a view to having the wireless service between the two 
 countries placed on a commercial basis. A resolution was adopted 
 by the group committee to the effect that the Governments of the 
 United States and Mexico be requested to give consideration to the 
 development of a wireless telegraph service between the two nations 
 for the purpose of assisting commercial intercourse. 
 
 MEXICAN MONETARY SITUATION. 
 
 The increase in the price of silver has driven the old silver coins 
 out of circulation, including the old pesos, the 50-centavo coins, the 
 20-centavo coins, and the 10-centavo pieces, respectively. On advice 
 from an American authority the Mexican Government adopted a new 
 system of coinage, with a view to reducing the amount of pure silver 
 contained in the coins, so as to make their real value inferior to their 
 commercial value and thus retain them in the country. The steadily 
 increasing value of silver forced the Mexican Government to alter the 
 
138 SECOND PAN AMERICAN FINANCIAL, CONFERENCE. 
 
 percentage of silver contained in her coinage in 1917, 1918, and 1919, 
 respectively. Mr. Sobral stated that the question of retaining silver 
 coinage in Mexico constituted a real problem because the future 
 status and value of silver is uncertain, and the employment of small 
 gold coins has not been found satisfactory. 
 
 Mr. Williams was called upon to discuss the silver situation in the 
 United States and to make any suggestion which might be of assist- 
 ance to the Mexican delegation. He stated the belief that this prob- 
 lem would probably be solved by the great increase in the produc- 
 tion of silver all over the world, as a result of the present high price 
 of the metal. 
 
 In view of the desirability of meeting the Avorld's present demand 
 for silver, Mr. Williams urged the necessity of a continuance of the 
 maximum production of silver in Mexico as a real solution of the 
 problem. He stated frankly that the United States is looking to 
 Mexico for help in this matter, adding that he knew of no country 
 that had as great possibilities in that regard. 
 
 The question of free ports in Mexico was then discussed, Mr. 
 Sobral stating that, properly speaking, Mexico does not have free 
 ports, but that there are general warehouses wherein merchandise 
 can be accepted, held, and reexported without paying duties. 
 
 The question of Mexican consular invoice fees was also referred 
 to, the complaint being repeated that they are very large and 
 practically amount to a tax upon every import into the country. 
 There is also a system of fines which exposes American exporters to 
 very serious losses if there be error in the consular invoices. Mr. 
 Sobral admitted that Mexican consular fees are very high, which he 
 stated was a measure imposed upon his country from sheer necessity, 
 but which he regarded as temporary. He promised to communicate 
 this criticism to the secretary of the treasury of Mexico and to sug- 
 gest the advisability of minimizing these difficulties. 
 
 FOREIGN INVESTMENTS IN MEXICO, THEIR PRESENT STATUS AND THEIR 
 
 FUTURE. 
 
 Mr. Sobral explained the Mexican policy of concessions, stating 
 that Mexico is especially inclined to foster those investments which 
 will develop her future possibilities. He stated that Mexico has 
 always followed the policy of seeking foreign capital; that Mexico 
 had come to realize that investment is no longer an end in itself, but 
 an instrument designed to bring about better conditions ; that Mexico 
 was inclined at all times to grant to investors not only full rights 
 under the law but also protection, and to go to considerable sacri- 
 fice to foster investments which contribute to the development of her 
 natural resources. 
 
REPORT OF THE CONFERENCE COMMITTEE MEXICO. 139 
 
 The classes of investments are: (1) Agricultural, (2) transporta- 
 tion, (3) banking, (4) commercial. 
 
 BANKING CONDITIONS. 
 
 Mr. Sobral called especial attention to the liberality of the attitude 
 of the Mexican Government toward banks. The law of Mexico is no 
 respecter of persons, no license is required to operate, and all that the 
 Government concerns itself with is that the investor complies with 
 the law that exists. 
 
 The following limitations are placed by the Government upon the 
 banks : 
 
 1. A deposit of 30 to 40 per cent reserve is required. 
 
 2. The policy of the Government is to supervise the bank, with the 
 object of protecting investors. 
 
 3. The Government guarantees publicity and inspects the bank's 
 account. 
 
 MINING INVESTMENTS. 
 
 Mr. Sobral stated that mining is a natural industry which is 
 profitable to foreign investors, but proceeded no further with the 
 discussion. 
 
 EDUCATION. 
 
 No figures were given as to the number of students in the schools, 
 nor the amount of money expended for education by them ; the great 
 drawback connected with the educational system of Mexico is that an 
 intellectual and social structure can not be built successfully when 
 the economic condition of the student or teacher is unsatisfactory. 
 Respectfully submitted. 
 
 THE CONFERENCE COMMITTEE FOR MEXICO, 
 YGNACIO BONILLAS, Honorary Chairman. 
 ROBERT S. BROOKINGS, Chairman. 
 
NICARAGUA. 
 
 REPORT OF THE CONFERENCE COMMITTEE. 
 
 The honorable the SECRETARY OF THE TREASURY OF THE UNITED 
 
 STATES. 
 SIR : Your committee has the honor to submit the following report : 
 
 I. EFFECTS OF THE WAR. 
 
 The war stimulated greatly the development of the various natural 
 resources of Nicaragua, such as the natural woods, the castor bean, 
 corn, sugar, etc. 
 
 These increased developments have naturally tended toward greater 
 economic independence. 
 
 Owing to the loss of the European markets after the United States 
 entered the war, the price of coffee was so lowered that it approxi- 
 mated the cost of production, so that at this period the war tended 
 strongly to delay the development in that field. Likewise, for a short 
 period, the embargo on hides and skins lessened the revenue and 
 caused considerable loss on the part of cattle men and shippers. Since 
 the signing of the armistice, however, the conditions have stimulated 
 production. 
 
 II. TRANSPORTATION. 
 
 The chief problem of Nicaragua at the present time is the develop- 
 ment of a general system of good roads, railroads, and inland water- 
 ways. In view of the financial situation of Nicaragua, it seems clear 
 that they can finance a bond issue of $5,000,000 for railroad construc- 
 tion. The Government proposal, which we recommend, of a rail- 
 road between Lake Nicaragua and the Atlantic coast would afford 
 means by which the Pacific and Atlantic coasts would be connected 
 through railroad and water transportation. 
 
 The financial condition and future prospects of Nicaragua are such 
 as to make the proposed project an attractive financial investment. 
 
 The committee recommends that a further detailed study of devel- 
 opment projects, especially highways, public utilities, and similar 
 enterprises, be undertaken by the Government, and that an effort to 
 the extent that the Republic's resources warrant be made to carry out 
 these projects as a unified plan. 
 140 
 
REPORT OF THE CONFERENCE COMMITTEE NICARAGUA. 141 
 
 III. AGRICULTURAL BANK. 
 
 In view of the fact that the interest rate on farm loans ranges 
 from 12 per cent to as high as 36 per cent maximum per annum, 
 the necessity of an agricultural bank to finance the needs of the 
 small farmer is apparent. In view of the further fact that the 
 Government of Nicaragua is willing to cooperate in this matter, we 
 recommend that measures be taken to establish an agricultural bank, 
 supported by American capital, to furnish farm loans at a reason- 
 able rate of interest and with a long amortization period. 
 
 IV. NATIONAL CREDIT AND THE FACTORS AFFECTING IT. 
 
 Since the United States Government and financiers have been co- 
 operating with the Nicaraguan Government in questions of finance 
 and currency there has been established a sound currency system on 
 a gold-exchange basis ; the public debt has been reorganized, consoli- 
 dated, and materially reduced; a national bank has been estab- 
 lished; a large volume of paper currency, formerly irredeemable, 
 has been converted into a currency on a par with gold; the customs 
 tariff has been thoroughly revised, the service has been completely 
 reorganized and has been so efficiently administered that the cost of 
 collection has been greatly reduced, while the revenues have been 
 considerably increased; the railroad, which had been inefficiently 
 managed and had not been able to earn dividends, has been greatly 
 improved both in condition of road and equipment and in the char- 
 acter of operation, and is now paying reasonable dividends. 
 
 The use of $1,400,000 of the canal treaty funds for the refunding of 
 the internal debt substantially increased the prosperity of the coun- 
 try, with a consequent increase of Government revenues. 
 
 All of these improved financial measures which have been carried 
 into effect have raised to a very high degree the national credit of 
 Nicaragua and its citizens, both at home and abroad. 
 
 The operation of the financial plan through a budget adapted 
 to the real needs of the country has enabled the Government not 
 only to pay a portion of its foreign debt before maturity but has 
 left a substantial surplus available for internal improvements and 
 the service of the internal debt. 
 
 The minister of finance of Nicaragua in his preliminary statement 
 affirms that this beneficial association with the United States has 
 promoted not only the economic welfare but likewise the financial 
 and political independence of his country. 
 
 V. CHAMBERS OF COMMERCE. 
 
 The group committee on Nicaragua favors the establishment, 
 wherever practicable, of chambers of commerce, whose duty it shall 
 be to further the business welfare of the countrv concerned, pri- 
 
142 SECOND PAN AMERICAN FINANCIAL CONFERENCE. 
 
 marily through increasing the cooperation between themselves and 
 the chambers of commerce of other North and South American 
 countries. 
 
 VI. ARBITRATION. 
 
 The committee believe that commerce between the different coun- 
 tries would be promoted by the establishment of proper measures to 
 secure the settlement of commercial and financial disputes through 
 a high court of equity or proper board of arbitration. 
 
 VII. REGULATIONS REGARDING CONSULAR INVOICES AND BILLS OF LADING, 
 
 Nicaragua was one of the first countries to follow the recommenda- 
 tions of the First Pan American Financial Conference in instituting 
 a standard form of consular invoice and similar regulations of bills 
 of lading on the lines ox the United States on that subject; and these 
 measures have greatly facilitated the trade relations between Nica- 
 ragua and the United States. As a consequence of these experiences 
 it is earnestly recommended that the Committee on Resolutions set in 
 motion the proper machinery to study the best methods of securing 
 promptly by other Pan American countries the simplification, unifi- 
 cation, and adoption of a standard form of consular invoices and 
 bills of lading. 
 
 VIII. MISCELLANEOUS. 
 
 Resolved, That due consideration for our mutual interests with 
 friendly nations the accurate exchange of official communica- 
 tions and the maintenance of successful financial intercourse be- 
 tween the Pan American Republics demands that as far as may 
 be practicable all ambassadors, ministers, and consuls hereafter 
 sent from one of such Republics to another, shall be able to speak 
 and write without the aid of an interpreter the language of 
 the country to which they are sent, for in this way many un- 
 necessary mistakes, vexatious delays, and costly misunderstand- 
 ings may be avoided. 
 Respectfully submitted. 
 
 THE CONFERENCE COMMITTEE FOR NICARAGUA, 
 
 OCTAVIANO CESAR, Chairman. 
 
 W. L. SAUNDERS, Vice Chairman. 
 
 APPENDIX. 
 
 The difficulty of securing foodstuffs obliged Nicaragua to grow 
 more cereals. The growing of wheat was stimulated and windmills 
 will be imported. Recently there has arisen the manufacture of tex- 
 tiles, the tanning of hides for footwear and saddlery, and a furniture 
 
REPORT OF THE CONFERENCE COMMITTEE NICARAGUA. 143 
 
 factory for ordinary and high-grade pieces which were formerly 
 imported. 
 
 The war through lack of shipment and governmental embargoes 
 almost paralyzed business. Shipping was reduced 50 per cent during 
 war time, and ocean freight and passenger rates were enormously 
 high. Nicaragua needs reduction in ocean freights and particularly 
 on parcel post packages. It is hoped and believed that marine in- 
 surance will be reduced below war-time rates. 
 
 Private finance needs lower interest rates and longer maturities. 
 National capital can contribute to the extent of only 20 per cent for 
 this purpose. The needs along new business are those of railroads, 
 coast-wise shipping, turtle and pearl fishing, and the exploitation of 
 manganese, coal, and other minerals. 
 
 The Republic plans the substitution of another form of revenue 
 for the present government income from the monopoly in the sale of 
 all alcoholic beverages. 
 
 There are excellent lighthouses at the four principal ports of 
 entry two on the Atlantic coast and two on the Pacific coast. At 
 Bluefields and Corinto ships discharge alongside of wharves. 
 
 The Republic of Nicaragua has signed the convention concerning 
 commercial travelers with the United States. 
 
 On December 1, 1919, a postal money order convention between the 
 United States and Nicaragua went into effect. 
 
 With reference to the international gold-clearance fund, the mone- 
 tary system and the financial situation of Nicaragua are such that 
 there is no immediate need for such a fund. 
 
 Radio installation for governmental purposes is also contemplated, 
 and a school for wireless operators is now in existence. 
 
 The Hague convention on bills of exchange and checks has been 
 adopted. 
 
 It has been recommended to the Government of Nicaragua that 
 there be incorporated in the commercial code provisions in reference 
 to merchandise shipped on consignment. 
 
 Nicaragua has already ratified the convention for the registration 
 of trade-marks in Habana and Rio de Janeiro. 
 
 FINANCIAL CONDITION. 
 
 The financial, economic, and internal conditions of Nicaragua are 
 in an excellent situation. 
 
 The budget of the Republic is $95,000 per month, and in case of 
 urgent need this can be increased by $26,666.66, or an annual admin- 
 istrative budget, excluding debt service, of $1,460,000. Under pres- 
 ent contracts the Republic devotes 50 per cent of its surplus revenues 
 for redemption of foreign debt (partially suspended during the war), 
 
144 SECOND PAN AMERICAN FINANCIAL CONFERENCE. 
 
 and the balance is used for public improvements and the service of 
 the internal debt. For the calendar year 1918 these surplus revenues 
 amounted to $544,000. For the six months ended June 30, 1919, they 
 aggregated $606,000, and from cable advices recently received they 
 have jumped to $645,000 for the last half of the .year 1919. 
 
 Internal and customs revenues have shown large increases for 1919 
 as compared with 1918, and this is not only the result of increased 
 business, but also more efficient financial administration. In the past 
 two years Nicaragua has paid $5,000,000 toward redemption of and 
 interest on its foreign and internal debt. 
 
 Under the law providing for the issue of internal bonds (December, 
 1917) it is provided that the high commission 1 shall act as trustee 
 and fiscal agent for this bond issue. While the internal-debt service 
 is not entirely covered by specially hypothecated revenues at present, 
 the prompt payment of interest and regular as well as special amor- 
 tization have caused the price of these bonds in a purely local market 
 to advance from 30 to 62 within the past 18 months. 
 
 Through the work of the commission on public credit (from March, 
 1917, to June, 1919) the internal debt had been successfully revised 
 and consolidated, and the percentage of creditors, both foreign and 
 national, who did not accept its awards is so small as to be almost 
 negligible. 
 
 The high commission also collaborated with the other ministries 
 of the Government, and the following projects have been completed 
 or are under way : classified budget ; accounting, reporting, and fiscal 
 system ; municipal finance. 
 
 With Nicaragua occupying a strategical position in Central Amer- 
 ica and its raw materials and wonderful natural resources, coupled 
 with the governmental aid and encouragement given to all legitimate 
 business enterprises, the American investor and business man can 
 advantageously put his money into Nicaragua. 
 
 There is not only the possibility but also the probability that in 
 the not remote future the Nicaraguan canal will be built. Under the 
 Chamorro-Bryan treaty of 1916 the United States Government has 
 an option in perpetuity for its construction. 
 
 1 The " Alta Comlsi6n," to which reference is here made, is distinct from the Nic 
 raguan section of the Inter-American High Commission. 
 
PANAMA. 
 
 REPORT OF THE CONFERENCE COMMITTEE. 
 
 The honorable the SECRETARY or THE TREASURY OF THE UNITED 
 
 STATES. 
 SIR : Your committee has the honor to submit the following report : 
 
 TRANSPORTATION. 
 
 One of Panama's greatest problems is that of transportation, 
 especially as it relates to domestic commerce. With regard to for- 
 eign commerce, Panama's greatest asset is its strategic position on the 
 canal, the connecting link for shipping between the two oceans. 
 Panama has a vital internal transportation problem to solve, but ex- 
 ternal problems are few, since the shipping of the world focuses 
 naturally on the two mouths of the canal, near which are located the 
 cities of Colon and Panama. Panama's problem in respect to trans- 
 portation is to connect the Republic by a system of highways and 
 waterways with the main transportation arteries, namely, the Panama 
 Railroad and the Panama Canal. 
 
 It would be beneficial if in the Republic of Panama there were con- 
 structed a system of branch highways which would lead by land and 
 water from the interior and distant Provinces to the main highway 
 with terminals at Colon and Panama City. While Panama greatly 
 desires the completion of the Pan American Railway, yet with mod- 
 ern highways and motor trucks, the economic distribution of her 
 products could be to a large extent effectively handled. 
 
 The coastwise commerce of the Republic would be greatly stimu- 
 lated if there existed further vessels specially adapted for use on the 
 many rivers and harbors and on the oceans in marketing the products 
 of the country, to the end that the produce of Panama may be con- 
 veyed to the shipping points, thereby facilitating her commerce with 
 the United States in particular. 
 
 The United States has already surveyed a system of highways 
 crossing the Isthmus and also at right angles to the canal and encir- 
 cling the elevations. For the economic development of that part of 
 the Republic adjacent to the Canal Zone, Panama's road-building 
 program could be carried out, in cooperation with the United States, 
 by extension of this system of highways, to the benefit of both coun- 
 tries. 
 
 1497021 10 145 
 
146 SECOND PAN AMERICAN FINANCIAL CONFERENCE. 
 
 The Republic is at present largely dependent upon the Panama 
 Railroad, owned and operated by the United States Government, for 
 trans-Isthmus freight and passenger transportation. Closer relations 
 should be established between the Republic of Panama and the United 
 States to the end that the latter not only extend every consideration 
 possible consistent with economic handling of the property but also 
 adopt as its policy a plan of cooperation with the Republic. It is 
 recommended that a cooperative agreement might appropriately be 
 reached, giving more consideration to the economic needs of Panama 
 in the development of its foreign and domestic commerce. 
 
 In view of the above report, Mr. Clarence J. Owens moved, Mr. 
 George Mixter seconded, and the committee unanimously adopted 
 the following resolutions : 
 
 i. 
 
 Resolved, That a commission should be appointed consisting 
 of representatives of the Republic of Panama and of the United 
 States to consider the operation of the Panama Railroad and its 
 steamships with a view to granting to the merchants in Panama 
 further consideration in regard to freight rates and facilities for 
 the movement of the commerce of the country. 
 
 Resolved, That the cooperation of the United States with the 
 Republic of Panama in the construction of a system of highways 
 in the Republic would be most helpful to the economic develop- 
 ment of Panama and to the successful operation, maintenance, 
 and protection of the canal. 
 
 Resolved, That regulations regarding storage for the com- 
 merce of the Republic of Panama should be established by the 
 Panama Railroad and Canal Zone similar to those prevailing in 
 the case of goods coming from foreign countries. 
 
 Resolved, That the United States and the Republic of Panama 
 should at all times cooperate with the end in view that the 
 Panama section of the contemplated Pan American Railroad be 
 constructed at the earliest date possible. 
 
 i 
 ii. 
 
 Whereas the United States is desirous of carrying on exten- 
 sive commercial intercourse with Pan America : Now, therefore, 
 be it 
 
 Resolved, That all articles should be weighed, marked, and 
 shipping documents prepared in the American system and the 
 metric system at the same time. 
 
REPORT OF THE CONFERENCE COMMITTEE PANAMA. 147 
 
 III. 
 
 Whereas the monetary system of North and South America 
 is a decimal system, but varies in standard of value in' different 
 countries : Now, therefore, be it 
 
 Resolved, That careful consideration should be given to the 
 question of harmonizing and standardizing coins in the countries 
 of the American Continents so that they may bear direct rela- 
 tionship to the dollar and conform as closely as possible to the 
 coinage of the United States and Panama in respect to standard 
 of value. 
 Respectfully submitted. 
 
 THE CONFERENCE COMMITTEE FOR PANAMA, 
 J. A. ARANGO, Chairman. 
 JAMES BROWN, Vice Chairman. 
 
PARAGUAY. 
 
 REPORT OF THE CONFERENCE COMMITTEE. 
 
 The honorable the SECRETARY or THE TREASURY OF THE UNITED 
 STATES. 
 
 SIR: Your committee has the honor to submit the following 
 report : 
 
 Paraguay has increased her trade from $14,000,000 in 1913 to 
 $25,000,000 in 1919. This is but a beginning of the progress she can 
 confidently be expected to make when her great and varied resources 
 are developed. In order to develop them Paraguay requires : 
 
 1. Permanent investment of capital. 
 
 2. Improved transportation. 
 
 3. Improved monetary system. 
 
 4. Increased immigration. 
 
 PERMANENT INVESTMENT OF CAPITAL. 
 
 The Paraguay committee at the Second Pan American Financial 
 Conference, held in Washington in January, 1920, believes that it 
 should put in the forefront of this brief report the record of perform- 
 ance which Paraguay has made in carrying out the program of the 
 First Pan American Financial Conference, which met in Washington 
 in 1915. This record is a hopeful guaranty of Paraguay's determi- 
 nation to insure fair treatment to citizens of the United States seek- 
 ing trade or investment within her borders. The International High 
 Commission has reported to the present conference that Paraguay 
 has ratified the patent and trade-mark convention. Under the terms 
 of this convention Paraquay belongs to the southern group of Latin- 
 American countries, which is to have an International Bureau for 
 the Registration of Trade Marks at Rio de Janeiro similar to the one 
 in operation at Habana. But Paraguay, awaiting the ratification of 
 the convention by certain countries belonging to the southern group, 
 has independently taken action protecting trade marks. And Para- 
 guay -favors the use of the Habana bureau until the Rio de Janeiro 
 bureau is opened. 
 
 148 
 
REPORT OF THE CONFERENCE COMMITTEE PARAGUAY. 149 
 
 Another measure which has been pressed by the International 
 High Commission is the convention concerning commercial travelers, 
 proposed by the central executive council of the commission and 
 based on recommendations of the commission made at Buenos Aires, 
 April, 1916. This convention was signed by Paraguay and the 
 United States on October 20, 1919. 
 
 Another measure of great significance for the future is the treaty 
 for the establishment of an international gold clearance fund. This 
 convention was proposed by the central executive council of the In- 
 ternational High Commission based on recommendations of the com- 
 mission at Buenos Aires, April, 1916. Paraguay was the first country 
 to sign this convention. 
 
 With respect to the uniform measures as to bills of exchange, which 
 measures are the modified Hague rules of 1912, as modified according 
 to the recommendations of the International High Commission, made 
 at Buenos Aires, 1916, Paraguay has introduced bills in its Congress 
 embodying provisions for the revision of the commercial code in 
 accordance with the recommendations. 
 
 Arbitration of commercial disputes proposed by the United States 
 Chamber of Commerce on the basis of recommendations of the First 
 Pan American Financial Conference has been accepted by Paraguay, 
 and an agreement between the Chambers of Commerce of the United 
 States and Asuncion was completed in Washington while this Pan 
 American Financial Conference was in session. 
 
 The uniform statistical classification of merchandise based upon 
 the Brussels convention of November, 1913, and the uniform classifi- 
 cation recommended by the International High Commission at 
 Buenos Aires, 1916, has been adopted by Paraguay. 
 
 As regards customs regulations, the provisions relating to sanitary 
 visits outside regular hours and advance preparation of cargos have 
 been adopted by Paraguay, while the recommendations relating to 
 simultaneous loading and unloading of cargoes are now under con- 
 sideration. 
 
 This record of prompt performance by Paraguay of practically 
 all of the program proposed at the First Pan American Financial 
 Conference, together with the facts in regard to the conditions and 
 resources of Paraguay, which have been presented in detail by the 
 delegates from Paraguay, have resulted in the opinion on the part of 
 the group committee that private capital of the United States can 
 with safety consider investment in the securities of the Paraguayan 
 Government and in Paraguayan private enterprises. 
 
 As to the proper returns to be expected from such investments, no 
 exact rate can reasonably be fixed, but will have to be determined in 
 each specific case, which primarily must be governed by the law of 
 
150 SECOND PAN AMERICAN FINANCIAL CONFERENCE. 
 
 supply and demand. It is fair to presume, however, that the net re- 
 turns on such investments should be somewhat larger than the lender 
 of capital would normally receive from similar investments within 
 his own country. Furthermore, the returns from capital invested in 
 Paraguay will necessarily have to be as large as those obtainable 
 from similar investments in neighboring countries to become at- 
 tractive. 
 
 As an important investment fact it is reported that three large 
 packing plants, affiliated with three of the largest Chicago packing 
 companies, have been established in Paraguay since the First Pan 
 American Conference met in 1915. 
 
 In regard to commercial credits, the committee learned with satis- 
 faction that Paraguayan business houses are growing accustomed to 
 the practice, common in the United States, of supplying financial 
 statements as the basis for credit. 
 
 The committee believes that it would be most advantageous for the 
 merchants of Paraguay to advise their bankers regarding the person- 
 nel of their organizations, number of years established, nature of 
 business, capital employed, turnover per year, value of stocks car- 
 ried, and their latest balance sheet. With this information the busi- 
 ness houses would become internationally known and credits desired 
 would undoubtedly be secured. 
 
 IMPROVED TRANSPORTATION. 
 
 Paraguay, being an inland country, needs better transportation. 
 The present transportation facilities between the United States and 
 the River Plate are but little better than during the war, and the 
 lack of sufficient tonnage and the infrequency of sailings constitute 
 a serious handicap not only to trade between Paraguay and the 
 United States but to all other economic relations as well. At times 
 more than two months are required to reach the River Plate from 
 New York, and travelers between the United States and Paraguay 
 often find it necessary to go by way of the west coast of South 
 America. The committee strongly recommends that steps be taken 
 at once to establish a service providing at least fortnightly sailings 
 from both New York and Buenos Aires, and that the sailing time be 
 reduced to a time no longer than that required for a voyage between 
 Europe ,and the River Plate. 
 
 The chief outlet for Paraguay's foreign trade is the river route 
 by way of the Paraguay and Parana Rivers, and except in times of 
 low water this river route is navigable for boats of 12- foot draft as 
 far north as Corrientes and for boats of 7- foot draft from Corrientes 
 to Asuncion. There are three or four bad spots in the river between 
 
REPORT OF THE CONFERENCE COMMITTEE PARAGUAY. 151 
 
 Corrientes and Asuncion which could probably be kept open easily 
 and cheaply by dredging, thus avoiding transshipment of cargo, 
 which now increases the expense of shipping by 20 per cent. The 
 river traffic is now almost entirely in the control of a single line, 
 which in recent years has absorbed three of its largest competitors. 
 The high rates charged for river traffic are said to discourage Para- 
 guay's trade, and the establishment of a new line of river steamers 
 has been suggested as a means of remedying the situation. With 
 Paraguay's steadily increasing commerce, it is thought such a line 
 would be profitable. The International Products Co. has announced 
 that it will put two new boats of 1,000 tons each into this river serv- 
 ice about August, 1920, which will be available for carrying two or 
 three hundred tons of outside freight downstream and full cargoes 
 upstream. Besides the river route, Paraguay has an outlet to the 
 River Plate over a railway line to Buenos Aires from Asuncion. 
 This line, however, is in the control of four different companies, and 
 its terminus in Buenos Aires is several miles from the docks. Except 
 for high-priced freight, therefore, the line does not afford effective 
 competition with the river route. 
 
 The existing port facilities at Asuncion, the chief city of Paraguay, 
 are inadequate, and an improvement in them would bring a distinct 
 economic benefit to Paraguay's freight trade. 
 
 The telegraph service between Buenos Aires and Asuncion is poor ; 
 the part of the line going through Argentine territory is owned and 
 operated by the Argentine Government and that part going through 
 Paraguayan territory is owned and operated by Paraguay. A joint 
 inquiry by representatives of both Governments would probably 
 result in improvements, which would be very beneficial to commerce 
 between the United States and Paraguay. 
 
 For internal transportation Paraguay needs good highways for 
 motor trucks and teams as feeders to the present railway and the 
 river systems, and, as the country develops, will need more and more 
 short branch railways for the same purpose. If such improved 
 means of transportation and communication are made available, the 
 economic developments of Paraguay will be greatly stimulated, as 
 these new roads and railways will open much productive land to 
 colonization. 
 
 A railway line which is projected to connect Paraguay with the 
 Brazilian seaport of San Francisco has been constructed part of the 
 way to the Brazilian border, but its continuation must await con- 
 struction of the Brazilian section. This extension would benefit 
 Paraguay very greatly, as it would give Paraguay a second outlet 
 to the Atlantic Ocean, and would decrease the time 6f the journey to 
 the United States by about five days. 
 
152 SECOND PAN AMERICAN FINANCIAL CONFERENCE. 
 
 IMPROVED MONETARY SYSTEM. 
 
 Paraguay is making arrangements to procure the services of a 
 financial expert, probably from the United States, to reorganize its 
 fiscal-revenue system. 
 
 At present import and export business wholly, and some other 
 business partially, are based on Argentine gold dollars. The prin- 
 cipal medium of circulation is the Paraguayan paper peso, of which 
 125,000,000 have been issued by the Government during the course 
 of many years. Against this issue the "Oficina de Cambios" 
 (Exchange Office) holds about $1,500,000 gold, which, at present 
 rate of exchange, represents about 25 per cent of the total issue. 
 Measures have been taken to increase the reserve or stock of gold to 
 50 per cent of the value of the currency issued, when the conversion 
 rate will be fixed. The continuous fluctuations in the local value 
 of the paper peso is a serious drawback to all business; this will 
 disappear when the conversion rate is fixed. 
 
 INCREASED IMMIGRATION. 
 
 Paraguay's progressive policy in encouraging immigration was 
 highly commended by the conference committee. Immigration 
 has been steadily increasing, and is expected to increase still more 
 as the country's transportation and agricultural interests are devel- 
 oped. Laborers in various parts of Europe, particularly in central 
 Europe, have shown great interest in the possibilities of obtaining 
 land in Paraguay, as evidenced by the numerous applications re- 
 ceived by the Government for information on that subject. Para- 
 guay now pays the fare of immigrants from Buenos Aires to Asun- 
 cion and gives them a month's subsistence free of charge. It also 
 affords them opportunity to obtain good land at very low rates. 
 Such policy, if continued, should result, in the committee's opinion, 
 in supplying Paraguay with the labor which it now needs to bring 
 out the riches of its fields, forests, and mineral resources. 
 
 PARAGUAY'S RESOURCES. 
 
 
 Paraguay has many promising lines of economic development. 
 The most profitable of these at present is cattle raising, which has 
 been greatly stimulated by the building of packing companies, al- 
 ready referred to, which have come into the country in recent years 
 and erected establishments which employ 3,000 to 4,000 workers 
 each. Their policy of affording good food and housing facilities 
 to their laborers 'has had an excellent effect in the country in popu- 
 larizing United States enterprise. There are now some 5,500,000 
 
REPORT OF THE CONFERENCE COMMITTEE PARAGUAY. 153 
 
 head of cattle in Paraguay, and there is room for over five times 
 that number. The natural increase of cattle is 20 to 30 per cent 
 annually, and cattle diseases are uncommon. Grazing land is plen- 
 tiful and is valued at $6,000 to $12,000 per square league, or $1.30 
 to $2.60 gold per acre. 
 
 Paraguay's world-famous quebracho industry is capable of fur- 
 ther development, and constitutes one of the country's chief sources 
 of wealth in the future as it has in the past. The tanning extract 
 is its present important product, but the hard, durable wood is also 
 most valuable in railroad and other construction work. Paraguay 
 also has many most valuable woods for general building purposes. 
 
 Paraguay cotton ranks in quality with the best in the world, and 
 the cotton-growing industry is one of the most promising in the 
 country. Through the Banco Agricola the Government is giving 
 encouragement to the industry, at present by maintaining fixed 
 prices for cotton. Cotton is now raised in small tracts, being essen- 
 tially a " home industry." It is expected that in a few years Para- 
 guay will begin to export cotton. A plant producing a fiber very 
 similar to jute has been introduced from Africa and has been found 
 to grow well in Paraguay, giving promise of a future source of 
 material for making bags for containing products of the country. 
 
 The Government of Paraguay is especially interested in giving 
 the fullest information to inquirers in the United States regarding 
 the resources of the country, and will send full collections of sam- 
 ples of Paraguay products for permanent exhibition to any respon- 
 sible association desiring them. One such collection is to be placed 
 in the Philadelphia Commercial Museum. Through such exhibits 
 the study of Paraguay's resources by United States investors and 
 those interested in the commerce of the country will be greatly 
 facilitated. 
 
 Respectfully submitted. 
 
 THE CONFERENCE COMMITTEE FOR PARAGUAY, 
 
 EUSEBIO AYALA, Chairman. 
 
 LEWIS E. PIERSON, Vice Chairman. 
 
PERU. 
 
 REPORT OF THE CONFERENCE COMMITTEE. 
 
 The honorable the SECRETARY OF THE TREASURY or THE UNITED 
 STATES. 
 
 SIR: As the result of the First Pan American Financial Confer- 
 ence in 1915, the cordial relations which have for so many years ex- 
 isted between the Republic of Peru and the United States have been 
 further strengthened. It is highly important to both countries that 
 these relations should be constantly and progressively developed. 
 
 The commerce between the two countries has increased, and with 
 a proper extension of shipping facilities, it is quite certain that 
 the trade of Peru with the United States, which is already its largest 
 customer, will steadily increase. 
 
 The recommendation of the group committee report of 1915, which 
 is hereby reaffirmed, with respect to the establishment of branches 
 of American banking institutions in Peru, has been acted upon by 
 several of the largest banks of the United States. Two American 
 branch banks have already been established, and serve as important 
 instrumentalities for developing closer commercial and financial 
 relations between the two countries. 
 
 The Republic of Peru embraces a territory of 2,000,000 square 
 kilometers and has a population of 4,500,000. The exceptional cli- 
 matic conditions of the Peruvian coast make it an ideal country 
 for tropical and semi tropical agricultural growth, while there is 
 little doubt that its resources of raw materials are very great, in- 
 cluding sugar, cotton, wool, hides and skins, rubber, copper, vana- 
 dium, tungsten, iron ore, petroleum, coal, gold, and silver. 
 
 The development of these natural resources has been very limited, 
 due to the lack of adequate railroad facilities, and it is quite ap- 
 parent that, given the necessary capital for such development, the 
 Republic of Peru could greatly increase its contribution to the world's 
 need of these raw materials, at the same time vastly increasing its 
 production of food supplies so generally required throughout the 
 world. 
 
 The Government of Peru has evolved a comprehensive financial 
 program, based upon sound economic principles, which aims at the 
 development of these extensive natural resources. 
 154 
 
REPORT OF THE CONFERENCE COMMITTEE PERU. 155 
 
 The Peruvian delegation has presented the before-mentioned com- 
 prehensive plan of financial reorganization and development, nota- 
 bly the establishment of a national bank, under proper protection 
 of the Government and supervision of its officials. This bank is 
 not to be a bank of deposit, but a consolidation of the various col- 
 lecting companies of that country and a bank of issue, such issues 
 to be secured by 60 per cent in gold and 40 per cent negotiable se- 
 curities, such subsecurities being representative of its agricultural, 
 industrial, mineral, and railroad investments, the bank thus main- 
 taining at all times the necessary fundamental gold reserve and at 
 the same time holding a volume of securities, the interest or divi- 
 dends upon which would constitute an additional source of profit. 
 
 The financial needs have been summarized by the Peruvian dele- 
 gation as follows : 
 
 Railroads $40, 000, 000 
 
 Roads 6, 000, 000 
 
 Sanitation 10, 000, 000 
 
 irrigation and colonization ^ 55, 000, 000 
 
 Docks and ports improvements 6, 000, 000 
 
 National bank, including conversion of debts 29, 000, 000 
 
 Iron mines 1, 500, 000 
 
 Coal and petroleum 2,000,000 
 
 Electrolytic copper refining 1, 000, 000 
 
 Manufacture of explosives for mining purposes 1, 500, 000 
 
 Total 152, 000, 000 
 
 It is purposed to secure the amount required by the issue of 
 national bank debentures, the security for which will be the resources 
 of the bank; the profits accruing from their various collecting con- 
 tracts (which are said to be large), and the total resources and assets 
 of the various projects to which these moneys will be applied. These 
 debentures will bear a fixed rate of interest, and will also participate 
 in the profits of the national bank and its various subsidiary com- 
 panies, which make them an attractive investment. 
 
 To insure the underwriting and sale of the securities of the 
 National Bank of Peru, the Government of the Eepublic of Peru 
 should guarantee their payment, principal and interest, providing 
 for the payment of the principal by adequate annual amortization, 
 out of the revenue of the Government, as collected by the bank. 
 
 It is to be noted that the plan presented contemplates the retiring 
 of the entire national debt of the Republic of Peru and the refunding 
 of all such obligations into the one issue by the national bank. The 
 present debt of the Republic of Peru is about $27,000,000 with an 
 annual income of $25,000,000, and its revenues in the year of 1918 
 exceeded its expenditures approximately $3,000,000. The exports 
 of Peru were close to $100,000,000 in 1918 and its imports about 
 $50,000,000. 
 
156 SECOND PAN AMERICAN FINANCIAL CONFERENCE. 
 
 The plan presented by the delegates from Peru, in the judgment 
 of the Peruvian group, is sound in principle and should command 
 the support of American investors. The realization of the plan 
 would not only result greatly to the advantage of Peru but likewise 
 confer collateral advantages upon the United States by increasing 
 the commerce between those countries while adding substantially to 
 the world's production of essential commodities. The financial con- 
 ditions now existing, however, are not such as to make it practicable 
 to attempt such an extensive financial operation in this country. The 
 requirements for enormous capital expenditures in the United States 
 incident to the reconstruction of its own and the economic and in- 
 dustrial life of its associates in the war has advanced interest rates 
 to the point where it would make it quite difficult to exploit such an 
 enterprise in its investment markets. 
 
 A recent act of the Congress of the United States, known as the 
 Edge bill, authorizes the incorporation of companies to develop and 
 encourage international financing, and it is recommended that the 
 plan presented by the Peruvian delegates be referred for considera- 
 tion and development to such companies created under this act of 
 Congress. 
 
 The committee is gratified to be able to report that the Republic 
 of Peru has already advanced far along the line of development of 
 uniformity of legislation in relation to the six subheadings undei 
 Topic VI of the program of topics agreed upon for submission to the 
 conference. 
 
 In particular a classification of imports and exports has been 
 adopted conforming to the Brussels convention. In as far as these 
 matters are dependent upon further international agreement the Re- 
 public of Peru is not only willing but anxious to cooperate. 
 
 There is still a lack of means of wireless communication between the 
 several countries of South America and between South America and 
 the United States. It is the opinion of the Peruvian conference com- 
 mittee that better facilities in this direction should be developed, and 
 therefore it is suggested that a committee be appointed from the 
 countries interested to consider further and report upon this matter. 
 
 The Peruvian conference committee desires to record its satisfac- 
 tion in having been afforded this opportunity for conference and dis- 
 cussion, the fruits of which it is hoped will further cement the 
 friendly and cordial relations which have for so many years existed 
 between the peoples and Governments of Peru and the United States. 
 
 Respectfully submitted. 
 
 THE CONFERENCE COMMITTEE FOR PERU, 
 
 F. C. FUCHS, Chairman. 
 
 JOHN H. FAHEY, Vice Chairman. 
 
EL SALVADOR. 
 
 REPORT OF THE CONFERENCE COMMITTEE. 
 
 The honorable the SECRETARY OF THE TREASURY OF THE UNITED 
 STATES. 
 
 SIR : The conference committee to consider relations, financial and 
 commercial, between the Republic of Salvador and the United States 
 begs to submit the following report of its deliberations. 
 
 There were present : The official delegation from Salvador, His ex- 
 cellency, Dr. Jose Esperanza Suay, minister of finance of Salvador, 
 and Dr. Reyes Arrieta Rossi; as special guest of the Secretary of 
 the Treasury, the minister of Salvador, Senor Salvador Sol ; as special 
 representative of the Secretary of the Treasury, Hon. James H. 
 Moyle ; and the following United States members of the group com- 
 mittee : W. S. Rowe (chairman), O. C. Fuller, Otto N. Frenzel, jr., 
 George H. Harries, James T. Keena, George C. Luebbers, George E. 
 Macomber, G. A. Northcott, Harry Harwood Rousseau, Dayton Shel- 
 ley, Jerome Thralls, Charles W. Warden, Oscar Wells, and Walter 
 F. McCaleb (secretary). 
 
 The discussions of the various problems resolved themselves into 
 two heads : 
 
 1. Transportation and communication. 
 
 2. Banking facilities and trade relations. 
 
 After giving careful thought through the sessions of the conference 
 on Monday, Tuesday, and Wednesday of the present week, we submit 
 the following conclusions. 
 
 At the First Pan American Financial Conference, held in May. 
 1915, it was reported that better transportation by sea was greatly 
 needed by Salvador, so that mails, passengers, and products could 
 more readily and speedily pass between Salvador and the United 
 States. 
 
 This condition exists at the present day, and as a result of com- 
 plications arising out of the war to even a greater degree than ever 
 before. Prior to the war Salvador was served not only by the Pacific 
 Mail Steamship Co. with a dozen ships, but also by several European 
 steamship lines, including the German Kosmos. The Salvador Rail- 
 
 157 
 
158 SECOND PAN AMERICAN FINANCIAL CONFERENCE. 
 
 road Co., an English association, also had three small steamers in 
 coastwise service. At the present time Salvador is served only by 
 the Pacific Mail Steamship Co. with four steamers, and your com- 
 mittee feels that the need of better and more frequent steamer service 
 is urgent. 
 
 Such need would be filled by the allocation of additional cargo and 
 passenger vessels that will give more frequent and better service 
 between Salvadorean ports and Atlantic and Pacific ports of the 
 United States. Your committee recommends for specific considera- 
 tion in this connection the inauguration of a special monthly steam- 
 ship service from some Atlantic port, such as New York, Baltimore, 
 or New Orleans, running direct to Salvadorean ports, passing through 
 the Panama Canal. This line would speedily demonstrate the de- 
 gree of its usefulness and make further planning something more 
 than conjectural. 
 
 The Salvadorean Government has agreed to forward all efforts 
 looking to improved communication with the United States. It 
 freely proffers special concessions to those of pur steamers which 
 touch regularly at its ports and is prepared not only to reduce or 
 eliminate port dues but has announced that a reasonable subsidy 
 would be practicable where the arrangements were mutually 
 satisfactory. 
 
 Rail transportation in Salvador was not affected to any appre- 
 ciable extent by the war. New construction of the International 
 Railroad Co. of Salvador has been and is still being greatly delayed 
 through the difficulty in obtaining materials for the construction of 
 the branch line from La Union to the capital. Increased steamship 
 facilities will aid in removing this difficulty. 
 
 Your committee considers particularly important not only the 
 foregoing extension but also the branch that will connect the city 
 of Santa Ana with Zacapa in the Republic of Guatemala, which 
 will result in the completion of a through rail route from La Union 
 on the Pacific to Puerto Barrios on the Atlantic and will give Salva- 
 dor a direct outlet to the Atlantic through Guatemala. This will 
 reduce the tune of journey from Salvador to New Orleans and New 
 York to five and eight days, respectively. These extensions will 
 serve amply when the necessary 150 miles, more or less, have been 
 built. 
 
 We renew the recommendations made at the conference in 1915 
 favoring an increase of first-class highway mileage, for without 
 soundly constructed and maintained highways the distribution prob- 
 lem can not be economically solved. 
 
 On this point it is a satisfaction for your committee to state that 
 Salvador has constructed in the last three years a macadam highway 
 from the port of La Libertad to the capital, a length of 40 miles, 
 
REPORT OF THE CONFERENCE COMMITTEE EL SALVADOR. 159 
 
 thus affording to commerce an additional easy outlet and inlet for its 
 
 exports and imports. 
 
 Your committee on the subject of transportation begs to suggest: 
 
 That steamship lines can be greatly strengthened and devel- 
 oped through the sympathetic study of the commercial and 
 credit needs of the American States in general, and especially 
 we hold this to be true in the case of Salvador. In a word, 
 steamship lines must eventually become self-sustaining if they 
 are to continue to operate, and this will depend on the develop- 
 ment of permanent and mutually satisfactory commercial bases 
 as between our country and the other American States. The solu- 
 tion of this problem, then, involves close study of definite prob- 
 lems, and it is our opinion that such consideration is of funda- 
 mental importance in the matter of extending and furthering 
 happy relations with our neighboring Republics. This could 
 best be done, probably, through a special committee of this 
 conference. Studies should be made at first hand and the 
 results reported as widely as possible. 
 
 ii. 
 
 At the present conference, as at the one held five years ago, the 
 paramount need of increased banking capital and an increase in the 
 circulating medium was given special consideration by the financial 
 delegation representing Salvador. Since 1915, as your committee 
 believes, there has been a marked tendency toward the establishment 
 of branch banks in Latin- American countries by banking institu- 
 tions of our country, and that the process of creating new branches 
 in new localities is a continuing one, and, in a more limited way, 
 perhaps, the creation of independent banking concerns by banking 
 organizations has been inaugurated. Legislation through the enact- 
 ment of the Federal reserve act, as well as the passage of the Edge 
 bill, is favorable to the growth of invested capital in other countries, 
 so Salvador may reasonably hope for independent capital. Still, in 
 the opinion of your committee, the location of branch banks, even 
 without issuing powers, would be most beneficial because of the 
 resultant employment of such forms of currency as may be sent into 
 the territory intended to be covered by such new branches in lending 
 and investment operations. These will have the effect of increasing 
 the actual money per capita in the Republic entered. The establish- 
 ment of such branches or of independent banks supported by capital 
 from the United States would not only tend to meet the recognized 
 needs of Salvador with respect to an increase in banking facilities 
 and a greater supply of currency, but would become at once a poten- 
 tial factor in developing trade relations between our respective coun- 
 
160 SECOND PAN AMERICAN FINANCIAL CONFERENCE. 
 
 tries, involving not only the buying and selling of merchandise, but 
 the question of commercial credits as well. Believing that Salvador 
 is typical of other Latin- American countries into which banking 
 capital from our own country has not yet entered, we beg to make 
 the following recommendation to the general committee on forms 
 and resolutions : 
 
 That there be appointed a committee charged with the respon- 
 sibility of making a careful study of the banking laws of Sal- 
 vador and other Central and South American countries, first, 
 with the view to suggest such changes in the laws as will enable 
 their respective banking systems to respond most readily and 
 effectively to the seasonal and unusual demands of commerce 
 and industry; and, second, to propose such changes as will 
 attract banking capital from other countries. 
 
 We are told by the Salvadorean representatives that local capital 
 is timid and to a degree suspicious, and your committee is of the 
 opinion, furthermore, that employment of foreign banking capital 
 would render more stable the available supply of local capital and 
 credit. The actual establishment of an institution, whether bank 
 or branch, must of necessity be left to negotiation between the 
 agencies interested in the Republic of Salvador and the representa- 
 tives of private capital seeking to expand their banking facilities in 
 the Latin- American countries, and to both of these we commend the 
 subject of increased banking capital in Salvador as one of interest 
 and the source of practicable as well as mutual benefit. 
 Respectfully submitted. 
 
 THE CONFERENCE COMMITTEE FOR EL SALVADOR, 
 JOSE E. SUAY, Chairman. 
 W. S. ROWE, Vice Chairman. 
 
URUGUAY. 
 
 REPORT OF THE CONFERENCE COMMITTEE. 
 
 The honorable the SECRETARY OF THE TREASURY OF THE UNITED 
 STATES. 
 
 SIR : The conference committee for Uruguay desires to call atten- 
 tion to the satisfactory condition of the finances of Uruguay, its 
 increasing wealth, and its strong, favorable trade balance; the 
 development by its Government of port and transportation facili- 
 ties and other means of external and internal communication, and 
 in particular its excellent educational system. 
 
 The committee recommends to the favorable consideration of the 
 Government and the banking and commercial interests of the United 
 States : 
 
 1. The further development of maritime transportation 
 facilities for passengers and freight. The committee has 
 adopted two resolutions with a view to the fulfillment of this 
 purpose, copies of which are attached to this report. The United 
 States section of the committee has also adopted a resolution 
 favoring the award to the Government of Uruguay by the repa- 
 rations commission of the eight German ships seized by that 
 Government during the war. A copy of this resolution is 
 
 attached. Bancroft! 
 
 2. The further consideration of commercial conditions for 
 the purpose of effecting a larger interchange of commodities 
 between the two countries. In this connection the committee 
 heartily indorses the arrangement made between the chambers 
 of commerce of the two countries for the arbitration of commer- 
 cial disputes. 
 
 3. The study of industrial conditions in Uruguay with a view 
 to the establishment of industries there or their encouragement 
 with United States capital and industrial skill. 
 
 4. The publication of a descriptive pamphlet on Uruguay for 
 general distribution in the United States. The committee has 
 appointed a subcommittee to work in cooperation with the Uru- 
 
 1497021 11 161 
 
162 SECOND PAN AMERICAN FINANCIAL, CONFERENCE. 
 
 guayan minister in Washington and the Uruguayan consul in 
 New York to revise and bring up to date the descriptive pam- 
 phlet prepared in 1915 by the Uruguayan conference committee 
 of the First Pan American Financial Conference. 
 
 In the committee's opinion the excellent economic and financial 
 condition of Uruguay fully justifies a great extension of financial 
 relations between the United States and Uruguay when the world's 
 economic situation shall have become normal. 
 Bespectfully submitted. 
 
 THE CONFERENCE COMMITTEE FOR URUGUAY, 
 
 RICARDO VECINO, Chairman. 
 
 HARRY A. WHEELER, Vice Chairman. 
 
VENEZUELA. 
 
 REPORT OF THE CONFERENCE COMMITTEE, 
 
 The honorable the SECRETARY or THE TREASURY OF THE UNITED 
 STATES. 
 
 "SiR: The conference committee, consisting of the official delegation 
 and of the United States members, organized on January 19, 1920, 
 with the election of Dr. Vicente Lecuna (president of the Interna- 
 tional High Commission, Venezuelan section) as chairman of the 
 conference committee; of Mr. Kobert H. Patchin, of New York, as 
 vice chairman; and of Mr. Clarence H. Haring, of Connecticut, as 
 secretary. 
 
 The conference committee has surveyed the financial, commercial, 
 and economic relations of Venezuela with the United States and the 
 other Republics of America. 
 
 The official delegation of Venezuela, consisting of Dr. Vicente 
 Lecuna, Mr. Enrique Perez Dupuy, and Dr. Nicholas Veloz Goiticoa, 
 submitted a comprehensive report prepared by them for the Interna- 
 tional High Commission, dealing with all topics agreed upon by the 
 Governments of the American Republics for submission to the Second 
 Pan American Financial Conference. That report abounds in so 
 much valuable and pertinent material relative to the present finances, 
 commerce, transportation, and other economic conditions of Vene- 
 zuela that the committee has not ventured to traverse all of that 
 ground, but transmits the report herewith (with a translation in 
 English) with an urgent recommendation that it be published in both 
 Spanish and English as a part of the official proceedings of this 
 conference. 
 
 As a result of its deliberations, the conference committee begs to 
 submit the following report : 
 
 PRESENT CONDITIONS. 
 
 Venezuela has emerged from the war period with greatly enhanced 
 prosperity, and with several pressing economic problems requiring 
 early solution. One effect of the war has been to emphasize the 
 naturally reciprocal relation of Venezuela and the United States. 
 
 163 
 
164 SECOND PAX AMERICAN FINANCIAL CONFERENCE. 
 
 PUBLIC FINANCES. 
 
 The public finances of Venezuela are in a gratifying condition, 
 the total public debt having been reduced from 190,000,000 bolivares 
 ($38,000,000 United States) in 1901 to 142,000,000 bolivares ($28,- 
 500,000 United States) in 1918. Through all the trials imposed by 
 the war upon international finance Venezuela punctually met its 
 public- debt service. 
 
 COMMERCE WITH THE UNITED STATES. 
 
 Prior to the outbreak of the European war the United States, in 
 the year 1912, participated in the total foreign commerce of Vene- 
 zuela to the following extent : 
 
 Per cent. 
 
 United States ' proportion of total Venezuelan imports 33 
 
 United States' proportion of total Venezuelan exports 38 
 
 United States' proportion of total Venezuelan trade 3fr 
 
 In 1917 the United States' share of this commerce had increased 
 as follows: 
 
 Per cent. 
 
 United States' proportion of all Venezuelan imports 70 
 
 United States' proportion of all Venezuelan exports 55 
 
 United States' proportion of total Venezuelan trade 62 
 
 COMMERCE WITH EUROPE. 
 
 The greater part of Venezuelan foreign commerce other than with 
 the United States is with Europe. It is natural and just to expect 
 a certain readjustment and increase of the proportion of the trade 
 formerly held by Europe, as compared with that of the United States, 
 but the United States must nevertheless continue to be considered 
 Venezuela's chief market for raw materials. This is equally to the 
 advantage of Venezuela as an exporter of natural products and of 
 the United States as a consumer of raw materials, indispensable to 
 prosperity and stable operation of labor and industries. 
 
 During the war the manufactured products of the United States 
 have become better known to the people of Venezuela, and their con- 
 tinued exportation to that country is necessary in partial payment 
 for the greater value of imports from Venezuela, the trade balance 
 being always adverse to the United States. 
 
 TRANSPORTATION. 
 
 The fact that the natural relations between Venezuela and the 
 United States are truly reciprocal is proven by the fact that this 
 interchange of products, both before and since 1914, has been accom- 
 plished despite meager steamship communication as compared with 
 
KEPORT OF THE CONFERENCE COMMITTEE VENEZUELA. 165 
 
 the steamship facilities between Venezuela and Europe. Before the 
 war only one regular line connected the United States and Venezuela, 
 as against seven steamship lines operating between the chief Vene- 
 zuelan ports and England, Spain, France, Italy, and Holland. Two 
 American lines are now operated, but only one operates passenger 
 vessels. 
 
 The abnormal conditions which have existed during the war, and 
 the suspension of shipping facilities between Venezuela and Europe, 
 have doubtless contributed to some extent to increase the commerce 
 between Venezuela and the United States. As normal conditions are 
 rapidly being restored, it is only fair to assume that the same facili- 
 ties which formerly existed between Venezuela and Europe will be 
 reestablished, and even increased; and consequently, if the United 
 States is to hold the commerce which has been created during the war, 
 it will be absolutely necessary to provide additional transportation 
 facilities. 
 
 In this connection it should be pointed out that the interchange of 
 commerce depends not only on the character and price of goods but 
 largely upon the personal relations between merchants. So far, the 
 travel between Venezuela and the United States has been greatly 
 handicapped. At the present time the facilities for passenger travel 
 to the United States are inadequate as compared with those provided 
 by the European lines. In order to induce Venezuelan merchants more 
 freely to visit the United States, or to come to the United States on 
 their way to and from Europe, passenger facilities should be greatly 
 increased. 
 
 The Venezuela conference committee recognizes that improved 
 steamship communication is an essential factor in Pan American co- 
 operation, and recommends to the United States Shipping Board and 
 o the existing American steamship companies calling at Venezuelan 
 ports the early enlargement and improvement of their services for 
 both passengers, freight, and mails ; and also recommends to the In- 
 ternational High Commission that the needs of Venezuela for im- 
 proved steamship communication with the other countries of America 
 be given careful consideration. 
 
 The natural advantages of the ports of Venezuela for transship- 
 ment are manifest ; and, in the opinion of the committee, the interests 
 of Venezuela will be distinctly served by a reduction of port dues, 
 tonnage taxes, and other Government charges on shipping to such 
 points as will cover the actual cost of the services rendered. This 
 would be in conformity with the practice of all nations which seek 
 to attract the world's shipping to their ports. The committee also 
 recommends that the present port regulations of Venezuela be altered 
 so as to permit the simultaneous loading and unloading of vessels. 
 
166 SECOND PAN AMERICAN FINANCIAL, CONFERENCE. 
 
 UNIFORM LEGISLATION. 
 
 It is further recommended to the official delegation, and through 
 them to the Venezuelan Government, that the Government of Vene- 
 zuela cooperate, through the International High Commission, with 
 the other countries of South America in the establishment of uniform 
 customs regulations, and legislation and regulations affecting bills of 
 exchange, 1 checks, bills of lading, warehouse receipts, contracts in 
 foreign trade, patent and copyright laws, and uniform admiralty 
 laws. 
 
 COMMERCIAL AGREEMENTS. 
 
 The encouragement of commerce between Venezuela and the 
 United States through the negotiation of commercial agreements, 
 such as are authorized in the present American tariff law, is desir- 
 able in principle, as a means of securing to each country reciprocal 
 advantages in ftie markets of the other. 
 
 SILVER. 
 
 While the currency of Venezuela is on a gold basis, and the 
 finances of the country in a sound and prosperous condition, the 
 rising price of silver presents to that Government a serious problem 
 in connection with its subsidiary coinage very similar in character 
 to that which will confront the Government of the United States if 
 the price of silver should reach a much higher point. As this problem 
 is common, in a greater or less degree, to all countries with a silver 
 subsidiary coinage, the Venezuelan conference committee recom- 
 mends that it be given the early attention of the International High 
 Commission. 
 
 Venezuela has $10,000,000 in silver in circulation. 
 
 It needs more now than it did five years ago, due to the fact that 
 its commerce has grown. 
 
 During the harvest season silver has gravitated toward the har- 
 vesting centers, returning later to the 28 agencies of the Bank of 
 Venezuela. 
 
 During the last three years the return of silver has been in lessen- 
 ing quantities. In later years there has been an increased use of 
 bank notes guaranteed by gold deposits. 
 
 Due to the increase in value of silver in the subsidiary coins, it is 
 feared that this currency may disappear from circulation. 
 
 1 The Hague rules of 1912 relating to bills of exchange and checks with certain modi- 
 fications recommended by the International High Commission were incorporated into the 
 Venezuelan Commercial Code effective in December, 1919. Editor. 
 
KEPORT OF THE CONFERENCE COMMITTEE VENEZUELA. 167 
 
 Venezuela, with reference to her population, needs more silver 
 coins than other countries, because the use of checks and bank notes 
 is not so general. 
 
 The bank notes of the four national banks of issue in Venezuela 
 are exchangeable for gold or silver on presentation at any of the 28 
 agencies of the Bank of Venezuela. 
 
 The Venezuelan Government is now preparing to mint a gold 
 coin worth 10 bolivares (equal $2 United States gold). 
 
 Venezuela's monetary system is the same as that of France before 
 the war; but silver coins in Venezuela, even those 0.900 fine, are re- 
 ceived as legal tender only to a limited amount. 
 
 METRIC SYSTEM. 
 
 One obstacle to the accomplishment of a greater degree of eco- 
 nomic Pan Americanism is the difference between the metric system 
 of weights and measures everywhere legally established and univer- 
 sally used in Latin- American countries and the English standard 
 which, notwithstanding its obvious defects, continues to obtain in the 
 United States. The tariff laws and customs administration of all the 
 other Republics of America are in metric terms. American ex- 
 porters are increasingly accommodating themselves to the use of the 
 metric system in foreign commerce. It is steadily growing in do- 
 mestic industry. If it could be established in the United States, a 
 long step would be taken toward more effective commercial relations 
 with Latin America in particular, and with many other countries of 
 the world. 
 
 As a partial step to this end, the committee strongly recommends 
 increased instruction in the metric system in the public schools, 
 counsels exporters to its wider use, and advises importers to adopt it 
 wherever possible. The practice of many exporters in using metrical 
 equivalents, wherever they use the English standards in catalogues, 
 price lists, labels, etc., has been most useful, and this method should 
 be more generally followed. 
 
 INCREASED STUDY OF THE SPANISH LANGUAGE. 
 
 The increased study of the Spanish language in the high schools, 
 colleges, and universities of the United States, and through private 
 instruction, with but slight governmental or business encouragement, 
 is in itself evidence of the cultural richness of this language and of 
 Spanish literature, as well as of a growing public appreciation of its 
 value as a commercial medium. A large part of the present United 
 States was formerly Spanish, and Spanish influence in the develop- 
 ment of the United States has been far more potent than is generally 
 realized. Indeed, even at the present day it must not be forgotten 
 
168 SECOND PAN AMERICAN FINANCIAL CONFERENCE. 
 
 that the United States has extensive territory in Porto Eico and the 
 Philippine Islands, where Spanish is the language of the people. 
 Furthermore, the literature and traditions of Spain itself have come 
 down to us as a heritage from that nation. 
 
 The committee cordially urges the more general study of Spanish 
 for cultural quite as much as for commercial reasons. In Latin 
 America the study of English is increasing in a corresponding man- 
 ner, and it is hoped will meet with the encouragement of all govern- 
 ments. 
 
 The considerable number of the youth of Venezuela attending edu- 
 cational institutions in the United States is gratifying; and the at- 
 tention which colleges and universities are giving to the study of 
 Latin- American affairs and the special measures which the universi- 
 ties of America are taking to attract students from the sister republics 
 is most commendable and useful. 
 
 As the first Pan American Financial Conference paved the way for 
 the negotiation of agreements for commercial arbitration between 
 commercial organizations in Latin America and the Chamber of Com- 
 merce of the United States representing American business, the com- 
 mittee has learned with gratification that the Chamber of Commerce 
 of Caracas has instructed two of the members of the Venezuelan offi- 
 cial delegation (who are also members of that chamber) to negotiate 
 with the Chamber of Commerce of the United States an agreement 
 for the arbitration of commercial disputes. The committee feels that 
 such a mechanism will go far to improve trade relations between the 
 two countries. 
 
 The committee is moved to record its appreciation of the construc- 
 tive accomplishments of the International High Commission and its 
 central executive council as a permanent body for realizing the pur- 
 poses of the Pan American financial conferences. 
 
 The committee recommends that the official delegation recommend 
 to the Venezuelan Government that it shall deposit in the library of 
 the Pan American Union two copies of all informative official publi- 
 cations, maps, and other data; that it consider the advisability of 
 preparing a comprehensive, standard handbook in English describ- 
 ing the financial, commercial, material, and other conditions of Vene- 
 zuela to be distributed through the Pan American Union; that it 
 deposit in the Pan American Union for exhibit, whenever found de- 
 sirable and practicable, films descriptive of Venezuelan life and re- 
 sources; and that every effort be made to make the Pan American 
 Union a practical, up-to-date, central bureau of information. 
 
 Respectfully submitted. 
 
 THE CONFERENCE COMMITTEE FOR VENEZUELA, 
 
 VICENTE LECUNA, Chairman. 
 
 ROBERT H. PATCHIN, Vice Chairman. 
 
INDEX. 
 
 Page. 
 
 Acceptances, resolution on 13, 57 
 
 Aldao, Dr. Ricardo C., address 55 
 
 Alexander, Hon. J. W., chairman of the committee on transportation and 
 
 communications + 45 
 
 Arag6n y Etchart, Dr. Florencio, address 50-51 
 
 Argentina : 
 
 Conference committee 21 
 
 Report of 65-68 
 
 Argentine and American Chamber of Commerce, 68; bank- 
 ing, 66; census, 67; commercial arbitration, 67; commer- 
 cial attache's, 68; monetary unit, 66; taxation, 67; trade- 
 marks, 68; transportation, 65-66; uniform legislation, 68. 
 Banks and banking: 
 
 Argentina, 66; Chile, 89-90; Colombia, 94; Cuba, 100; Mexico, 139; 
 Nicaragua, 141 ; Peru, 155 ; Salvador, 15&-160. 
 
 Resolution on establishment of branches 57 
 
 Banquet tendered delegates 54 
 
 Barrett, Hon. John: 
 
 Ex officio member of all group committees 19 
 
 Remarks 43 
 
 Bolivia : 
 
 Conference committee 22 
 
 Report of 69-73 
 
 Capital and credit facilities and necessities, 71 ; chamber of 
 commerce, 72; commercial attache's, 72; commercial trav- 
 elers, 72 ; debt, 71 ; effects of war, 69 ; financial needs, 70 ; 
 fiscal system, 71 ; international commerce, 69, 72 ; patents 
 and copyrights, 72 ; postal relations, 72 ; railways, need of, 
 70-71 ; wireless system, 72. 
 
 Recommendation of the extension of financial aid to Europe by 
 the United States through the purchase of Government securi- 
 ties of the republics of Central and South America now held 
 
 in Europe 52 
 
 Brazil : 
 
 Conference committee 28 
 
 Report of 74-87 
 
 Capital and credit facilities, 77-78; commercial travelers, 
 84 ; debt, 79-SO ; effects of the war, 74-76 ; financial needs, 
 76-77; fiscal system, 80-82; gold clearance fund, 84; 
 recommendations, 87; transportation and communications, 
 82-83, 85; uniformity of legislation, 86-87. 
 
 169 
 
170 INDEX. 
 
 Page- 
 
 Budget system 50 
 
 Address on ' 49 
 
 Cable and telegraphic service, Colombia 7 9& 
 
 (See Transportation and communications.) 
 Capital and credit facilities : 
 
 Bolivia, 71; Brazil, 77-78; Ecuador, 108; Guatemala, 114-115; Haiti, 
 
 121; Honduras, 126-127. (See also Financial needs.) 
 Census : 
 
 Argentina 67 
 
 Resolution on 14, 58 
 
 C4spedes, Dr. Carlos Manuel de : 
 
 Member of committee on resolutions 56 
 
 Presiding officer at the first general session 44 
 
 Chambers of commerce : 
 
 Argentina, 68 ; Bolivia, 72 ; Nicaragua, 141-142. 
 
 Checks, resolution on uniformity of 14r 
 
 Chile : 
 
 Conference committee 24 
 
 Report of 88-92 
 
 Banking and currency, 89-90 ; commerce, 91-92 ; commercial 
 arbitration, 91; nitrate situation, 88-89; public utilities, 
 91; transportation, 90-91. 
 
 Debt, public ~_ 46 
 
 Field for investment 4$ 
 
 Classification of merchandise : 
 Paraguay, 149 ; Peru, 156. 
 Colombia : 
 
 Conference committee 25 
 
 Report of 93-98 
 
 Banking facilities, 94; cable and telegraphic service, 96; 
 commercial travelers, 96; currency, 95; debt, 95; distribu- 
 tion of information concerning ore deposits and industries, 
 96; effects of the war, 93-95; fiscal system, 95; freight 
 rates, 96; patents, trade-marks, and copyrights, 96; rail- 
 ways, 93-94; recommendations, 96-98; warehouse facili- 
 ties, 96. 
 Commerce : 
 
 Bolivia, 69, 72; Chile, 91-92; Cuba, 100; Peru, 154; Uruguay, 161; 
 
 Venezuela, 164. 
 Commercial arbitration : 
 
 Argentina, 67 ; Chile, 91 ; Guatemala, 118 ; Nicaragua, 142 ; Paraguay, 
 149 ; Uruguay, 161 ; Venezuela, 166-168. 
 
 Resolution on 15, 
 
 Commercial attache's: 
 
 Argentina, 68 ; Bolivia, 72. 
 
 Resolution concerning 14, 
 
 Commercial intercourse : 
 
 Ecuador, 110-111 ; Guatemala, 116-117 ; Haiti, 123 ; Honduras, 131 ; 
 
 Mexico, 137 ; Panama, 146. 
 Commercial travelers : 
 
 Bolivia, 72 ; Brazil, 84 ; Colombia, 96 ; Paraguay, 149. 
 
 ; 
 
INDEX. 171 
 
 Committees : Page. 
 
 Group conference 21-39 
 
 Resolutions 20 
 
 Transportation and communications 20 
 
 Cuba: 
 
 Conference committee 26 
 
 Report of 99-103 
 
 Banking system, 100 ; commerce with the United States, 100 ; 
 currency, 99; effects of the war, 100; relations with the 
 United States, 99-100; recommendations, 102; sugar, 100, 
 102 ; taxation means of paying ordinary expenses, 101. 
 Currency : 
 
 Address on 46-49 
 
 Chile, 89-90; Colombia, 95; Cuba, 99. 
 Debt: 
 
 Bolivia, 71 ; Brazil, 79-80 ; Colombia, 95 ; Mexico, 136 ; Peru, 155. 
 Documentation. (See Transportation and communications.) 
 Dominican Republic : 
 
 Conference committee 27 
 
 Report of 104-106 
 
 Financial conditions, 104 ; loan for improvement of roads and 
 ports, 104 ; measures which the Republic should take, 104 ; 
 measures which the United States should take, 104. 
 
 Duties, prohibitive, resolution on 59 
 
 Ecuador : 
 
 Conference committee 28 
 
 Report of 107-112 
 
 Capital and credit facilities, 108; commercial intercourse, 
 measures to facilitate, 110-111 ; effects of the war, 107-108, 
 109-110; national credit and the factors affecting it, 108- 
 109; recommendations, 112; transportation facilities, 109- 
 110 ; uniformity of legislation, 111-112. 
 Education : 
 
 For foreign service, 58 ; Mexico, 139 ; Venezuela, 167. 
 Elizalde, Dr. Rafael H. : 
 
 Member of committee on resolutions 56 
 
 Presiding officer at third general session 45 
 
 Federal reserve bank of New York, visit of delegates to 55 
 
 Financial needs: 
 
 Bolivia, 70; Brazil, 76-77; Dominican Republic, 104; Mexico, 137; 
 Nicaragua, 143-144; Peru, 155-156. (See also Capital and credit 
 facilities.) 
 Fiscal system: 
 
 Address on 47-49 
 
 Brazil, 80-82 ; Colombia, 95. 
 
 Foreign corporations, resolution on 13, 57, 60 
 
 Freight rates, Colombia 96 
 
 General sessons__'_ 40-^1, 43-60 
 
 Glass, Carter: 
 
 Addresses 43,54 
 
 Announcements 44 
 
 Presiding officer 17, 43 
 
172 INDEX. 
 
 Gold clearance fund: Page. 
 
 Brazil, 84 ; Paraguay, 149. 
 Resolution on 13, 57 
 
 Guatemala : 
 
 Conference committee 29 
 
 Report of 113-119 
 
 Capital and credit facilities, 114-115 ; commercial arbitration, 
 118; commercial intercourse, 116-117; effects of the war, 
 113; patents and copyrights, 118; port dues, 119; recom- 
 mendations, 118; trade-mark convention, 118; transporta- 
 tion facilities, 115-116; uniformity of legislation, 117-118. 
 Haiti : 
 
 Conference committee 30 
 
 Report of 120-124 
 
 Capital and credit facilities, 121; commercial intercourse, 
 123 ; effects of the war, 120-121, 122-123 ; national credit 
 and the factors affecting it, 121-122 ; transportation facili- 
 ties, 122-123; trade-mark convention, 124; uniformity of 
 legislation, 123-124. 
 
 Harding, Hon. W. G. P., address 51-52 
 
 Honduras : 
 
 Conference committee 31 
 
 Report of 125-133 
 
 Capital and credit facilities, 126-127; commercial inter- 
 course, 131 ; effects of the war, 125-126, 128-131 ; national 
 credit and the factors affecting it, 127-128; recommenda- 
 tions, 132-133; transportation facilities, 128-131; uni- 
 formity of legislation, 131-133. 
 
 International High Commission 44 
 
 Resolution adopted for change of name 13, 56, 59 
 
 International Trade-Mark Bureau at Havana, resolution on 58, 60 
 
 (See also Trade-marks.) 
 Investments : 
 
 Mexico, 138-139 ; Paraguay, 148-150 ; Uruguay, 161. 
 
 Lansing, Hon. Robert, address 43 
 
 Loans : 
 
 Dominican Republic 104 
 
 Granted to Latin American countries by repaying Latin American 
 
 obligations held in Europe 15, 59 
 
 Marshall, Hon. Thomas R 55 
 
 Martinez Sobral. Dr. Enrique, address 52 
 
 McAdoo, Hon. William G. : 
 
 Addresses 44, 55 
 
 Presiding officer at second general session 44 
 
 McCormick, Hon. Medill, address 49 
 
 Members of group committees. (See Committees.) 
 Metric system. (See Weights and measures.) 
 Mexico : 
 
 Conference committee 32 
 
 Report of 134-139 
 
 Banking conditions, 139; commercial intercourse, 137; debt, 
 136; education, 139; effects of the war on Mexican trade, 
 134; financial neeAs, 137; foreign investments, 138-139; 
 mining investments, 139; monetary situation, 137, 138; 
 railroads, 135-136; revenues, 136; transportation, 134-135. 
 
INDEX. 173 
 
 Page. 
 
 Monetary situation, Mexico 137-138 
 
 Monetary unit : 
 
 Argentina, 66 ; Paraguay, 152. 
 Moore, Hon. John Bassett : 
 
 Chairman of committee on resolutions 20 
 
 Address on the work of the International High Commission 44 
 
 Address, Pan American Society banquet 55 
 
 National credit and the factors affecting it : 
 
 Brazil, 79-80; Ecuador, 108-109; Haiti, 121-122; Honduras, 127- 
 128; Nicaragua, 141. 
 
 New York City, trip to 55 
 
 Nicaragua : 
 
 Conference committee 33 
 
 Report of 142-143 
 
 Agricultural bank, 141; chambers of commerce, 141-142; 
 commercial arbitration, 142 ; effects of the war, 140 ; finan- 
 cial condition, 143, 144; national credit and the factors 
 affecting it, 141; recommendations, 142; transportation, 
 140. 
 
 Officers of the conference 17-18 
 
 Official delegations 19, 21-39 
 
 Panama : 
 
 Conference committee 34 
 
 Report of 145-147 
 
 Commercial intercourse, 146; transportation needs, 145- 
 
 146; uniformity of legislation, 146-147. 
 Paraguay : 
 
 Cbnference committee 35 
 
 Report of 148-153 
 
 Classification of merchandise, 149; commercial arbitration, 
 149 ; commercial travelers, 149 ; customs regulations, 149 ; 
 gold clearance fund, 149; increased immigration, 152; in- 
 vestment of capital, 148, 150; monetary system, 152; 
 needs of, 148; patent and trade-mark conventions, 148; 
 resources, 152-153; transportation, 150-151; uniformity 
 of legislation, 149. 
 Paredes, Gen. Juan E. : 
 
 Member of committee on resolutions 56 
 
 Presiding officer at the fifth general session 51 
 
 Patents and copyrights: 
 
 Bolivia, 72 ; Colombia, 76 ; Guatemala, 118 ; Paraguay, 148. 
 
 Resolution on 14, 58 
 
 (See also Trade-marks.) 
 
 Payne, Hon. John Barton, address 44 
 
 Peru: 
 
 Conference committee 
 
 Report of 154-156 
 
 Bank, establishment of branches, 155 ; classification of mer- 
 chandise, 156; commerce, increase of, 154; debt, 155; 
 financial needs, 155-156; natural resources, 154; rail- 
 road facilities, need of, 154; recommendations, 154; uni- 
 formity of legislation, 156; wireless communications, 
 lack of, 156. 
 
174 INDEX. 
 
 Peters, Hon. Andrew J. : Page. 
 
 Address 46 
 
 Member of committee on resolutions 56 
 
 Philadelphia, trip to 55 
 
 Port dues, Guatemala 119 
 
 Postal facilities: 
 
 Bolivia, 72 ; Brazil, 84. (See also Transportation and communica- 
 tions. ) 
 
 Preliminary meeting of official delegations 42 
 
 Public utilities, Chile 91 
 
 Railroads : 
 
 Bolivia, 70-71; Colombia, 93-94; Mexico, 135-136; Peru, 154. (See 
 
 also Transportation and communications.) 
 Raw materials: 
 
 Resolution on 15 
 
 Reservation to resolution on 16 
 
 Recommendations : 
 
 Brazil, 87; Colombia, 97-98; Cuba, 102; Dominican Republic, 104; 
 Ecuador, 112; Guatemala, 118; Honduras, 132-133; Nicaragua, 
 142; Peru, 154. 
 Reports of: 
 
 Group conference committees . 45, 65-168 
 
 Argentina, 65-68; Bolivia, 69-73; Brazil, 74-87; Chile, 88-92; 
 Colombia, 93-98 ; Cuba, 99-103 ; Dominican Republic, 104-106 ; 
 Ecuador, 107-112; Guatemala, 113-119; Haiti, 120-124; Hon- 
 duras, 125-133; Mexico, 134-139; Nicaragua, 140-144; Pan- 
 ama, 145-147; Paraguay, 148-153; Peru, 154-156; Salvador, 
 157-160; Uruguay, 161-162; Venezuela, 163-168. 
 
 Committee on resolutions 54, 56-60 
 
 Committee on transportation and communications 45, 56, 61-64 
 
 Resolution adopting part of 13, 56, 59 
 
 Secretary general to the Secretary of the Treasury 12, 54 
 
 Secretary of the Treasury to the President 5-11 
 
 Resolutions adopted 13-15 
 
 Reservations to 15-16 
 
 Report of committee on resolutions 56-60 
 
 Resources, natural: 
 
 Chile, nitrate, 88-89; Cuba, sugar, 100, 102; Paraguay, 152-153; 
 Peru, 154. 
 
 Revenues, Mexico 136 
 
 Robles, Dr. Victor, address 46 
 
 Rodriguez Beteta, Dr. Virgilio, address 49 
 
 Rowe, Hon. Leo S. : 
 
 Secretary general of the conference 18, 42 
 
 Address 55 
 
 Announcements 42,45 
 
 Report 12, 54 
 
 Salaberry, Dr. Domingo E. : 
 
 Address 54 
 
 Member of committee on resolutions 56 
 
 Remarks- _ 54 
 
INDEX. 175 
 
 Salvador : Page. 
 
 Conference committee 37 
 
 Report of 157-160 
 
 Banking facilities and trade relations, 159-160; transporta- 
 tion and communications, 157-159. 
 Sampaio, Dr. Carlos Cesar de Oliveira: 
 
 Address 53 
 
 Member of the committee on resolutions 56 
 
 Taxation 50 
 
 Argentina, 67; Cuba, 101. 
 
 Resolution on 13, 16, 57 
 
 Telegraphic service. (See Transportation and communications.) 
 Tejada, Dr. Luis: 
 
 Addresses 52-53,55 
 
 Member of the committee on resolutions 56 
 
 Thompson, Hon. Huston, address 45 
 
 Topics discussed *at conference 40-41 
 
 Trade-mark convention : 
 
 Argentina, 68 ; Colombia, 96 ; Guatemala, 118 ; Haiti, 124 ; Paraguay, 
 148. 
 
 Recommendation for adoption of 14, 58, 60 
 
 Transportation and communications: 
 
 Argentina, 65-66 ; Brazil, 82-83, 85 ; Chile, 90-91 ; Ecuador, 109-110 ; 
 Guatemala, 115-116; Haiti, 122-123; Honduras, 128-131; Mexico, 
 134-135; Nicaragua, 140; Panama, 145-146; Paraguay, 150-151; 
 Peru (wireless), 156; Salvador, 157-159 ; Uruguay, 161 ; Venezuela, 
 164-165. 
 
 Discussion on 44 
 
 Improvement of ocean and land transportation 44, 65 
 
 Resolution concerning 13, 15, 56-57, 59 
 
 Uniformity of legislation : 
 
 Argentina, 68 ; Brazil, 86-87 ; Ecuador, 111-112 ; Guatemala, 117-118 ; 
 Haiti, 123-124; Honduras, 131-132; Panama, 146-147; Peru, 156; 
 Venezuela, 166. 
 
 Resolution concerning 14, 57 
 
 Uruguay : 
 
 Conference committee 38 
 
 Report of 161-162 
 
 Commercial arbitration, 161; distribution of descriptive 
 pamphlets, 161-162; increase in financial relations with 
 the United States desired, 101-162; increased trade with 
 the United States^ 161 ; investment of United States capital 
 and industrial skill, 161 ; transportation development, 161. 
 Vecino, Dr. Ricardo: 
 
 Member of committee on resolutions 56 
 
 Presiding officer at fourth general session - 46 
 
 Venezuela : 
 
 Conference committee 39 
 
 Report of 163-168 
 
 Commerce with the United States, 164; with Europe, 164; 
 commercial arbitration, 166, 168 ; debt, 164 ; effects of the 
 war, 163; greater study of Spanish language, 167-168; 
 metric system, 167 ; public finance, 164 ; recommendations, 
 168; silver, 166-167; transportation, 164-165; uniform 
 legislation, 166. 
 
176 INDEX. 
 
 War, effects of: Page. 
 
 Bolivia, 69; Brazil. 74-76; Colombia, 93-95; Cuba, 100; Ecuador, 
 107-108, 109-110 ; Guatemala, 113 ; Haiti, 120-121 ; Honduras, 125- 
 126, 128-131 ; Mexico, 134 ; Nicaragua, 140 ; Venezuela, 163. 
 
 Warburg, Hon. Paul M., address 47 
 
 Webb law 16,45 
 
 Weights and measures : 
 
 Resolution on 15, 58 
 
 Venezuela 167 
 
 Wireless communication : 
 
 Bolivia, 72; Colombia, 96; Peru, 156. (See also Transportation and 
 
 communications. ) 
 Zuberbuhler, Mr. Luis, address 45 
 
 o