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The fact must be taken into consideration that the stocks of all im- 

 ported articles are still very heavy and it is probable, therefore, that the 

 actual revival of the export-trade to the Argentine will remain in abeyance 

 for some little time. The difficulty with Italy appears to have been removed, 

 for since the Argentine Congress has decided to abrogate the special 

 sanitary measures against Italian vessels, the abolition of the Italian 

 decree against emigration to Argentina, if not already actually carried out, 

 may be expected in the near future. According to a communication by 

 the German Consulate-General at Buenos Ayres, dated 13 th January 1912, 

 the total value of Argentine industrial products in the year 1911 exceeded 

 4000 million Marks. This increasing national production is a factor which 

 can no longer be left out of account in considering the general economic 

 balance of the country, and which will probably result in the commercial 

 balance of Argentina showing for the year 1911 an excess of exports over 

 imports. "Taking everything into consideration", the report concludes, 

 "the country looks forward with confidence to the year 1912". 



The conditions of export-business to Chili have been quite favourable 

 in 1911, for the activity in the nitrate of soda trade has infused new 

 vigour into the country. The official returns of foreign trade show an 

 increase both in imports and exports, but here, too, there are indications 

 pointing to the beginning of an accumulation of imported merchandise. 

 In the year 1911 the imports have for the first time exceeded the exports, 

 the balance representing a value of nearly $ 10 000 000. The crop-pros- 

 pects are said to be favourable, whereas it is known that last year's 

 harvest, owing to drought, was not a good one. Still, after a series of 

 favourable harvests such as has occurred in Chili, this single failure of 

 crops does not signify very much. The condition of the national finances, 

 however, remains unfavourable. Internal and external debt, paper money 

 and railway-guarantees have, it is said, piled up a National Debt of 

 1000 million Pesos paper, representing over 300 Pesos paper per head of 

 the population, a figure equalled in no other country. It is to be desired 

 that ways and means will be found to take up with some energy the 

 paying-off of foreign loans, for this is the only way of putting an end to 

 the instability of the rate of exchange, which is such a serious obstacle 

 to the economic progress of Chili. 



It is to be regretted that in Peru no change for the better can be 

 discerned. It is true that agriculture continues to develop favourably and 

 %hat cotton, sugar and rice have realized profitable prices, but the greater 

 part of the natural wealth of the country is still awaiting rational exploi- 

 tation. We understand that much is expected for Peru from the opening 

 of the Panama Canal, and that it is believed that, when this has been 

 accomplished, North American enterprise will turn towards the country. 

 It is to be hoped that these dreams may be realized, but we doubt whether, 

 for some years to come, much can be expected from the purchasing 



