I can only offer an opinion on this subject, based on much observation, and some experience. That opinion is that if there were American banks in Brazil the great bulk of their business would be just what the existing British banks are doing. The bulk of Brazil's exports goes to New York, but the exporters do not want their money either in Brazil or in New York; they want it in London where they can buy merchandise with it. If there were American banks in Brazil the situation would not be changed. If an American bank were called on to handle the finances of a coffee crop that bank would have to pay for the crop in London and nowhere else. Lack of American ships and steamers. Very similar are the opinions in regard to the lack of American ships and American lines of steamers. Some people seem to think that we might gather in a lot of trade with Brazil if only there were American ships to carry things back and forth. But I have noticed that, in pratice, the merchants both in Rio de Janiero and in New York, other things being equal, ship by vessels that can carry their merchandise most cheaply. They are not influenced to any appreciable extent by matters of sentiment. If we had so many ships that their competition for trade reduced the freight rates below those asked by British or other ships, then, and then only, would our ships get the carrying trade. AMERICAN INTERVENTION IN CENTRAL AMERICA By Philip Marshall Brown, Assistant-Professor of International Law and Diplomacy, Princeton University; formerly American Minister to Honduras Since 1906 Central America has had two wars, three successful revolutions and five abortive uprisings, not including several conspiracies to assassinate the President of Guatemala or recent plots in Nicaragua for the overthrow of the revolutionary government which supplanted the Zelaya régime. During this turbulent period the policy of the United States has developed by progressive steps from simple mediation, to direct intervention in the internal affairs of these republics. Our government has been almost incessantly occupied with the difficult task of trying to reconcile their differences, head off revolutions, avert war and facilitate the return of peace. We have come to realize that in order to prevent intervention on plausible grounds by European powers, the obligation of securing more stable conditions in Central America for the protection of all interests, logically devolves on the United States. This has become a most embarrassing problem and we are constantly reminded that: When constabulary duty 's to be done, In June 1906, President Roosevelt with the coöperation of President Diaz acted as mediator between Guatemala on the one side, and Salvador and Honduras on the other, to terminate the brief war then in progress. The treaty of peace signed on board the American gunboat Marblehead submitted all differences to the arbitration of the two mediators and, moreover, invoked their moral guarantee for the fulfillment of the provisions of the treaty. This direct recognition of the obligation of the United States to mediate and intervene in their affairs was assented to by to all of the five republics with the exception of the government of President Zelaya, who desired a free hand for the carrying out of his ambitious schemes to dominate Central America. The friendly mediation of the United States was insufficient to deter Zelaya from making war in February, 1907, against the government of President Bonilla in Honduras though it was able to prevent the conflict's spreading to Salvador and Guatemala. American warships actively intervened on both the Atlantic and Pacific coasts of Honduras to protect foreign interests and prevent the needless destruction of life and property. In August of the same year, the American government was able by strenuous diplomatic representations to avert war between Nicaragua and Salvador. But it was evident that more definite and effective measures would have to be adopted to preserve peace in Central America. On the initiative of President Roosevelt, a peace conference of the five republics was held in Washington from November 13 to December 20, 1907. The work of this conference, consisting of several conventions on various subjects, was received with considerable optimism. It was believed by many that the basis had been laid for permanent peace. The key to the whole structure was the Central American Court of Justice to which all controversies of whatever nature were to be brought for final adjudication. It was heralded as a triumph for the cause of compulsory arbitration between nations; and Mr. Carnegie was induced to provide the court with a beautiful building at Cartago, Costa Rica. Those familiar with conditions in Central America, however, were not misled by the palliative measures adopted by the Washington conference. They realized that remedies on paper, without provisions for practical application and enforcement, were nothing but mockeries. The first decision of the Court of Justice, in a controversy between Honduras and Guatemala, was greeted with general derision. It was evident that the composition of the court was largely political; and that no means existed for enforcing respect for its decisions. Conditions in these countries continued as disturbed as ever and Zelaya showed his cynical contempt for the Washington conventions by launching a filibustering expedition against Salvador in February, 1909. By this time the American government was thoroughly convinced that the Washington conventions were of no value unless literally enforced and it reluctantly came to the conclusion that it must be prepared to forcibly prevent any further depredations by the Zelaya government. This decision was a momentous departure from the policy of nonintervention hitherto scrupulously observed, though it was the logical step in the fulfillment of the obligations of the United States, not only in behalf of all foreign interests, but also towards the people of Central America. The revolution on the Atlantic coast of Nicaragua in October, 1909, and the unjustifiable execution of the two Americans, Cannon and Groce, by order of Zelaya, compelled the United States to again intervene directly in Central American affairs. Zelaya was obliged to flee and the revolutionists were able ultimately to triumph. Another development in American policy was the agreement of our government to assist the new government in Nicaragua in the rehabilitation of the finances of that country. A treaty was negotiated with the Nicaraguan government by Secretary Knox, giving the United States the right, as in Santo Domingo, to act virtually as the receiver and guardian of the customs revenues. Although this treaty was not ratified by the Senate, the arrangement itself was carried through and American officials designated by the United States now control in large part the finances of Nicaragua. Furthermore during a formidable revolution in August and September of 1912, the United States landed troops in Nicaragua at the request of the Nicaraguan Government for the announced purpose of protecting American lives and property, maintaining a legation guard, and preserving free communication with the legation. The national railroad which had been hypothecated as guarantee of an American loan to the government, was operated under the protection of American soldiers. A considerable force was dispatched to Managua, the capital, and actually aided the government to repell and frustrate the revolution, which otherwise would have in all probability succeeded. Several American soldiers were killed during these operations. The government at Managua, which owed its continued existence to American support, subsequently signed another treaty with Secretary Knox, whereby Nicaragua agreed to allow the United States the sole rights to the construction of any canal across Nicaragua, as well as a coaling station in the Gulf of Fonseca in return for assistance for the rehabilitation of its finances. This treaty has been approved by President Wilson's administration, and is still awaiting action by the Senate. The formidable revolution headed by Ex-President Bonilla, which threatened to sweep the whole of Honduras in February of the present year, was again the occasion for the direct intervention of the United States. British and American marines were landed at Puerto Cortes which was declared neutral ground where hostilities would not be permitted. The inland town of San Pedro Sula, at the end of the railroad leading from Puerto Cortes, was also occupied and administered by the joint forces. The two rival factions, that of the government and that of General Bonilla, were notified that further disturbance and bloodshed would not be allowed and that some peaceful solution of their differences should be found. The apparently happy result of this intervention was the choice of a provisional president agreeable to both factions and a peaceful change of government with the prospect of an orderly, free election in the near future. The department of state at the same time announced the readiness of the United States to lend its good offices in support of certain measures for the refunding of the national debt of Honduras. A treaty similar to the earlier treaty originally negotiated with Nicarauga, was also negotiated by Secretary Knox with Honduras, but likewise failed of ratification. The government of Honduras has since been endeavoring to find a way to meet its foreign indebtedness without being compelled to resort to an American receivership. |