24: Ourdiner G. ILubbard — South Amei'ica. 



many of the mines, cattle ranches, coffee plantations and other 

 estates are owned by non-resident foreigners ; and that the largest 

 consumer of South American products is the United States, 

 although this country sells few of its manufactures and products 

 to South America. 



The English steamers, in the usual course of trade, load with 

 English dry-goods consigned to English houses in South America, 

 where they are sold and the proceeds invested in coffee and other 

 products, which are sent in the same vessels to the United States ; 

 there sold, and the money invested in our produce for carriage to 

 England. The English therefore obtain the profits on manufac- 

 ture, on the freight to South America, on the sale of the goods in 

 South America, on the freight from South America to the United 

 States, on the sale of those goods, and finally on the freight of 

 the American breadstuffs carried to Europe. For the successful 

 prosecution of any trade between two countries, it is essential 

 that each shall produce what the other wants : Thus, we raise 

 breadstuffs which are not grown on the Caribbean sea nor in the 

 valley of the Amazon, nor in Peru or upper Chili, and we also 

 manufacture goods required in all parts of South America, where 

 they have few factories ; there, coffee, wool, India rubber, cacao 

 and other articles are produced, which we require. Here, there- 

 fore, are the factors necessary for a prosperous trade. Such a 

 trade we formerly enjoyed with South America : In 1852, six 

 hundred United States vessels entered the harbor of Buenos 

 Ayres, or more than twice as many as those of all other nations 

 combined ; now only two per cent, of the shipping entering that 

 harbor belongs to us. Our war came, iron steamers took the 

 place of wooden sailing ships, we levied a duty on coffee and 

 rubber, South America levied a duty on our manufactures, other 

 countries subsidized lines of steamers, while we refused all sub- 

 sidies ; and our trade with South America rapidly fell off, as 

 freights were carried cheaper in foreign than in American ships, 

 and the trade of South America passed from the United States 

 to England, Germany and France. 



It is said that we cannot regain this trade, because we cannot, 

 without protection maintain our own manufactures, much less 

 compete with the Europeans in an open mai'ket ; and therefore 

 that it will be a waste of monej^ to subsidize our vessels. But the 

 larger the market the cheaper we can manufacture, and we can 



