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UNIVERSITY OF CALIFORNIA
AT LOS ANGELES




THE

NEW LATIN AMERICA



BY

J. WARSHAW, Ph.D.

Professor in the University of Nebraska; Corresponding
Member of the Hispanic Society of America

With an Introduction by
JAMES E. LeROSSIGNOL, LL.D.

Dean of the College of Business Administration,
University of Nebraska



NEW YORK

THOMAS Y. CROWELL COMPANY

PUBLISHERS



O Hi



Copyright, 1922,
By THOMAS Y. CROWELL COMPANY



SECOND PRINTING



Printed in the United States of America



\



TO MY WIFE

Hazel Jtart* Warslfato

WHOSE ASSISTANCE AND ADVICE
HAVE BEEN INVALUABLE TO ME



INTRODUCTION

The average American of these United States who re-
members his geography may know that America was
discovered by an Italian from Spain, that tobacco is grown
.in Cuba and coffee in Brazil, that the Amazon is the
p largest river in the world, that the forests of those regions
/J are full of tapirs, jaguars and boa constrictors, that the
(f condor of the Andes is one of the largest birds, that
* cattle abound on the pampas of Argentina, and that
revolutions are endemic in Mexico and Central America;
but he would have trouble in carrying on a conversation
Iq of ten minutes about Latin America, and the writing of
/- a thousand-word essay on the subject would drive him
-to despair. To such a person Dr. Warshaw's admirable
r book should come as a revelation, expanding his intel-
lectual horizon, mitigating his provincialism and his
•Anglo-Saxon prejudice, and teaching him to recognize
land appreciate the truly remarkable achievements of
wLatin-American civilization.
«p It is, indeed, surprising to find urban conditions in
tfLatin America so similar to those of the United States,
C/l although in every part of the civilized world they seem
to be conforming to certain types. Buenos Aires, for
example, is a great seaport comparable to any of our own,
with the usual ships, wharfs, railway terminals, derricks,
flying cranes, grain elevators, packing plants, stores, office
buildings, magnificent streets, electric lights, trolleys, motor
cars, hotels, banks, churches, schools, hospitals, art gal-
leries, newspapers, theaters, movies, and all the other con-
ventional equipment of a modern metropolis. Even in the
country districts one finds the most approved agricultural
and mining machinery, roads, railways, bridges, telegraph
lines, irrigation works, and fences, even, so like our own
that one wonders whether Latin America is being "Ameri-
canized" or whether the material progress so characteristic



viii Introduction

of the United States is but a phase of a far wider movement
going on in every part of the world.

The same question arises as one reads of the more strictly
cultural side of Latin- American life : the magnificent build-
ings and the noted scholars of many universities, the fine
Law School at Pernambuco, Brazil, the Agricultural School
at Sayago, Uruguay, the Military School at Rio de Janeiro,
the Palace of Fine Arts at Santiago, Chile, the Coyoacan
Art School of Mexico City. And then, of course, the cities '
have their leading merchants, manufacturers, physicians,
lawyers, educators, clergymen, architects, painters, musi-
cians ; nor are the women 's club and the feminist movement
lacking to complete the picture of up-to-date, progressive
civilization which is rapidly spreading everywhere and
doing so much to unify the world.

While thus pointing out the resemblances between Latin-
American civilization and our own, Dr. Warshaw by no
means ignores the many points of difference due to race,
history, geographical conditions, economic resources, and
the savage background, which in some of the countries
makes their civilization shine with a brilliant and almost
lurid light. The ways of the Latins are in many respects
different from ours, but all things considered, they have
achieved notable results in encroaching upon the primitive
savagery and in discovering and exploiting the vast re-
sources which lay at their disposal, though frequently in
difficult, if not inaccessible places. In this process of
development the Latins have been greatly aided by foreign
capital and adventurous spirits from the British Isles, Ger-
many, Italy and, more recently, from the United States,
many of whom have been consoled for their self-imposed
exile by rich material rewards. Not a few of these have
settled down among their Latin friends and neighbors, and
it is interesting to find in Chile and elsewhere their
descendants bearing such names as Tomas Le Breton and
Vicuna Mackenna, reminding one of the old time soldiers
of fortune of the British Isles who used to take part in
foreign wars and whose descendants are now found in many
parts of continental Europe.



Introduction ix

Of all the foreign pioneers of Latin America the most
highly esteemed have been the British, because of their
large investments and their reputation for solidarity, sin-
cerity, and other sterling qualities. As Dr. Warshaw well
says, "The word of an Englishman (palabra de ingles)
is the gold standard of commercial honor throughout Latin
America." During the past generation the Germans have
pushed the British hard, and they are now recovering a
considerable part of the trade lost during the war. Of
late years the trade of the United States with Latin
America has much increased and is likely to grow to large
proportions as larger investments are made and our com-
mercial representatives establish themselves more per-
manently in the countries where they do business. There
are now about 100 branches of American banks in Latin
America, of which about 42 are controlled by the National
City Bank of New York. United States capital, too, has
been invested in shipping companies, the fruit business,
meat packing, nitrate fields, mining and other lines of
development — all of which contribute to the expansion of
trade and to friendly relations with our fellow Americans.

Naturally, Dr. Warshaw has something to say of the
Monroe Doctrine, the Panama Canal, Pan-Americanism,
and other international questions, and his comments on the
Latin point of view should help us to see ourselves as others
see us. It will surprise many people to learn that Latin
Americans are more or less touchy on the Monroe Doctrine,
that they consider our protective tariff a serious handicap to
their foreign trade, that they resent our patronage, suspect
us of imperialism, speak of the "Yankee Peril," and, in
general, dispute our claim to primacy in Pan-American
affairs. All this gives food for thought, and suggests that
our merchants, manufacturers, investors, bankers, ship-
owners, railway magnates, statesmen, and the general public
must become more "internationally minded" if they would
establish friendly and profitable relations with our Latin
neighbors upon a firm and lasting basis.

James E. LeEossignol.



PREFACE

My chief aim has been to present a faithful picture of
progressive Latin America, the Latin America of to-day,
the Latin America which is still too generally unknown.

Scores of books have dealt with the history of Latin
America or of the various Latin American countries, scores
of others have summarized the impressions of travelers,
many have been compiled from commercial data, and a
few have furnished their readers with chapters or apergus
on specific signs of social, political, and economic im-
provement: but practically none has attempted to offer a
comprehensive and reasoned account of the onward moving
Latin America of the present moment. It is, nevertheless,
the last-mentioned Latin America which should appeal most
to the general reader : it is that Latin America about which
the general reader needs most to be informed : and it is with
that Latin America that the public of the United States,
above all, should become more intimately acquainted.

The point of view to which I have tried to hold con-
sistently has been that Latin American discussion ought
now to be couched in the tone in which the discussion of
European or American affairs is habitually carried on.
The attitude of the cultured tourist observing strange
phenomena in primitive lands is highly to be deprecated:
and the sooner it is set aside in reports on Latin America,
the better.

Frequently, and perhaps tediously, throughout the book
comparisons have been made with progress in the United
States and with the gradual change of opinion in Europe,
and particularly in England, concerning the resources and
potentialities of the United States and the cultural and
social evolution of the people of the United States. The
essential unity of Latin American customs, manners, and
morals with southern European customs, manners, and



xii Preface

morals has also been stressed. No doubt some of the argu-
ments contain elements of weakness: and it would be too
much to hope that the legitimate comparisons should now
be accepted in toto or at their full value. Yet I can see
no escape from employing approved historical methods of
measurement in setting forth evidences of advancement in
Latin America. What has been applied successfully to
other countries should, it seems, be applicable to Latin
America also.

I have, in so far as I am aware, no special propaganda
to further with regard to Latin America, though my belief
in the desirability and necessity of inter-American friend-
ship has not, I trust, failed to show itself unmistakably.
I am not anxious, nevertheless, to condone the genuine
faults, inconsistencies, or prejudices of the Latin American
nations. I am persuaded that Latin Americans have the
same number of merits and defects as other peoples: but
I am positive, likewise, that they have no more. On the
other hand, I am convinced that the general public of the
United States has never sufficiently recognized the worthy
qualities and accomplishments of its Latin American
neighbors: and I am sure that what is well known and
thoroughly familiar to thoughtful students of Latin Amer-
ica will often appear surprising and almost incredible to
the casual reader.

During the preparation of the following pages, valuable
assistance, which is here gratefully acknowledged, was re-
ceived from the Pan American Union, the National City
Bank of New York (Our South American Trade and Its
Financing, by Frank O'Malley), the Guaranty Trust Com-
pany of New York (Bank and Public Holidays Throughout
the World), the Bankers Trust Company, New York (List
of Foreign Correspondents) , and Mr. Harry Weston Van
Dyke, Washington, D. C, for lists of banking institutions
in South America. The author acknowledges also his in-
debtedness for material concerning Latin American news-
papers to Dr. W. E. Aughinbaugh 's Advertising for Trade
in Latin-America, and to the Gotham Advertising Company.

The trade statistics given in the Appendix are taken



Preface xiii

from figures published by the Pan American Union, Wash-
ington, D. C, January, 1922. The figures for Latin Ameri-
can trade given on pages 107, 108, and 109 are from an
article in the South American, May, 1921, based on a Latin
American trade circular issued by the United States De-
partment of Commerce, April, 1921. On page 308 the
figures for 1919 and 1920 are taken from the Commerce
Keport of the United States Department of Commerce,
April 6, 1921.

I acknowledge with pleasure my indebtedness to Dean
James E. LeRossignol of the College of Business Adminis-
tration, and to Dean Philo M. Buck, Jr., of the College of
Arts and Sciences, of the University of Nebraska, for their
constant encouragement during the preparation of this
book.

J. W.

May 20, 1922.



TABLE OF CONTENTS

Part One
CHAPTER I

PAGE

Fallacies, Fancies, and Facts 1

A Comparison with the United States — Five Common
Misconceptions — Sympathetic Appreciation of Latin
American Customs Important — Immense Size of Latin
America a Permanent Reality — Transportation — Im-
mense Coastlines — Superiority of Latin America in
Waterways — Water Falls and Water-Power — Grandeur
of Latin American Mountain Scenery — Climate — The
Negro Question — The Indian Question — Latin America
not Effete — Examples of Latin American Energy —
Latin American Magnitudes — Possibilities in Growth.

CHAPTER II

The End of Isolation 27

Penetrating Forces — Shortening of Distances to Latin
America — Emergence from Isolation — Increase in Ship-
ping — Immigration — Transportation.

CHAPTER III

Changing Industries 53

Agriculture and Mining — Agricultural Productivity — In-
tensive Agriculture — Salient Industries — Cattle-raising
in Argentina and Uruguay — New Fields for Cattle-
raising — Brazil a Coming Cattle Center — American
Packers in Brazil — Latin America's Part in the Odyssey
of Oil — Coal in Latin America— Lumber.

CHAPTER IV

Manufacturing and Labor 81

Cotton-growing and Cotton-manufacturing in Brazil —
Cotton-manufacturing in Argentina — Advent of the
Manufacture of Rubber in Brazil — Future Manufac-

xv



xvi Contents



PAGE

turing Centers — Varied Manufactures of Brazil — New
Manufacturing Projects in Brazil — Varied Manufac-
tures of Mexico — Future of Manufacturing in Latin
America — Changing Conditions of Labor — Labor Legis-
lation — Protection of Children and Women in the In-
dustries — Housing for Workingmen — Comparison with
the United States in the Development of Industries.

CHAPTER V

Paramount Foreign Interests 107

National Mobilization for Latin American Trade — Cap-
turing Latin American Trade in the Past — British Con-
fidence in Latin America — Latin American Trust in
British Management — The German "Drive" in Latin
America not Sinister — German Doctrine of "Service" —
Germany "Coming Back" in Latin America — Weakness
of Former American Methods — American Business-
men Making a Gallant Fight — Disadvantages of Ship-
ping in the Vessels of Competitors — Rapid Progress of
American Shipping — American Banks in Latin America.

CHAPTER VI

The Monroe Doctrine 136

The North American Peril — Latin American Notion of
the Transformation of the Monroe Doctrine — Contra-
dictory Applications of the Monroe Doctrine — Jus-
tifiable Policy of the United States Toward the
Caribbean Countries — President Roosevelt's Interpreta-
tion of the Monroe Doctrine — The Monroe Doctrine
and the Trans-Caribbean Countries — The Monroe Doc-
trine in Reality a Pan-American Doctrine — The Trans-
Caribbean Countries Able to Solve Their Own Political
Problems — Broadening of the Monroe Doctrine.

CHAPTER VII

International Rapprochement 158

Foreign Antagonism to Pan American Leadership of the
United States — Rapprochement Between Latin America
and European Latin Countries — Rapprochement Among
the Latin American Countries Themselves — Free Trade
and Rapprochement — Political Confederation — Recent
Establishment of the Republic of Central America —
Antecedents.



Contents xvii

Part Two
CHAPTER VIII

PAGE

The Growth of Nationalism 178

Separatistic Tendencies — Brazil as a Distinct Nation —
Historical Reasons for Lack of Solidarity Among the
Spanish Countries of Latin America — Latin Americans
not to be Confused with European Spaniards — Chief
Factors in the Development of Individual National
Spirit — Latin American Dictators as Contributors to
Patriotism — Modern Methods of Inspiring Patriotism —
Regionalistie Literature and Patriotism — The "Entente"
Idea Supplanting the Idea of Confederation.

CHAPTER IX

Social Development 204

Foreign Influences on Latin American Social Usage —
Physical Culture and Athletics — New Conception of
Sanitation — Social "Movements" — Prohibition in Latin
America — Housing and Prison Reform — Salvation
Army, the Y. M. C. A., and the Y. W. C. A. in Latin
America — The Transition from Individualism to Social
Regulation.

CHAPTER X

Public Enlightenment and Education .... 227
Public Education of Recent Date — Educational Zones —
Educational Progressiveness of Argentina — Changing
Ideals in Chilean Education — An Important Experi-
ment in Mexico — Secondary Education in Latin Amer-
ica — A Suggestion Concerning the Admission of Latin
American Students to Our Universities — European
Characteristics of Latin American Universities — Devel-
opment of Normal Schools — Technical and Vocational
Education — The People's University of Buenos Aires —
Libraries, Newspapers, and Motion-Pictures as Educa-
tional Agencies.

CHAPTER XI

Cultural Development 255

Comparison with the Progress of American Literature —
"Schools" in Latin American Literature — Andres Bello,
Scholar and Poet — Sarmiento, the "Schoolmaster Presi-
dent" — Ruben Dario, the Most Significant of Modern
Spanish Poets — Latin American Painters — Modern Art
in Mexico — Music and Drama — Science and Scholar-
ship.



xviii Contents

CHAPTER XII

PACT

The Position of Woman 279

Southern European Antecedents of the Latin American
Women — Effect of Example Set by American Women
— Legal Status of the Latin American Woman — Or-
ganized Feminism — Women Voters in Latin America —
Different Means Employed by the American and the
Latin American Woman — Social Factors in the
Woman's Movement in Latin America — The Education
of Woman — Vocational Education for Girls — The Pei*u-
vian Society of Feminine Industry — The Profession of
Teaching and the Dignity of Work — Women and the
Eradication of Social Evils— The Child- Welfare Work
of Latin American Women — Greater Freedom now Per-
mitted Women in the Larger Cities.



Part Three

CHAPTER XIII

The Field op Opportunity in Latin America . . . 306
Can We Hold This Trade? — Remarkable Expansion of
American Investments in Latin America — Financial In-
vestments Accompanied by Investment in Personnel —
Americans Who Owe Their Fortunes to Latin America
— Recent Successes of Large American Industrial Con-
cerns in Latin America — Outstanding Opportunities for
Men with Some Capital — European Department Stores
in Latin America — Immigrants who Built up Fortunes
in Latin America — Splendid Agricultural Opportunities
for the "Average Man" — Colonization Conditions —
Beneficial International Results of Colonization.



CHAPTER XIV

As Latin Americans See Us 333

Why We Are "The Americans" — The European Legacy
of Depreciation — A New Political View of the United
States — American "Kultur" — Latin American Judgment
of our Newspapers — Our Metropolitan Cities not a
Fair Standard for American Life as a Whole — Dif-
ference Between American and Latin American Intel-
lectual Perspective — Mistaken Latin American Criticism



Contents xix

PAQE

Due to Insufficient Knowledge — Difference in the
Genius of American and Latin American Journalism —
Susceptibility of Latin Americans to Acts of Courtesy
— Customs and Manners Distasteful to Latin Ameri-
cans and Europeans — Seriousness of Our Ignorance of
Latin America — A Defect in Our Educational System.

Appendix 359

Useful Information — Postal Information — Distances to
Principal Ports — Credit Conditions — Branches of Amer-
ican Banks — Principal Banks.

Bibliography of Recent Books 399

Index 403



LIST OF ILLUSTRATIONS

Bay and City op Rio de Janeiro from Summit of

Corcovado Frontispiece

FACING PAGE

Botafogo Bay, Harbor of Rio de Janeiro .... 12
"The Soldier's Leap" — Gorge in the Andes, Across

which One of O'Higgins's Cavalry Leaped His

Horse to Escape the Royalists 16

Avenue of Royal Palms, Rio Botanical Gardens . . 24

Avenida Central, Rio de Janeiro 24

A Coffee Plantation, Venezuela — Drying the Bean . 53
Prize Winners from "The Camp " (Argentina) . . 58

Coffee Plantation, Brazil 90

Plaza Mayor, Lima 104

Scene on the Oroya Railway (Peru) .... 115

Statue of Bolivar, Lima 170

Iguazu Falls, where Brazil, Paraguay, and Argentina

Meet 194

Jockey Club's Grandstand at the Race Track: (Buenos

Aires) 210

Soli's Theater, Montevideo 256

Cagancha Plaza, Montevideo 256

Colon Theater, Buenos Aires 278

Federal Capitol, Buenos Aires 278

Shrine of Our Lady of Copacabana, on Bolivian Shore

of Lake Titicaca 329

Town and Mountain of Potosi, Bolivia .... 329

MAPS

South America 358

Central America 374

Communications and Commercial Languages of America 384

Mexico 398

xxi



The New Latin America



PART I

CHAPTER I

FALLACIES, FANCIES, AND FACTS

The beginning of the twentieth century is witnessing
something like a cosmopolitan attempt at a second con-
quest of Latin America. Foreign governments and indi-
viduals appear to be engaged in keen rivalry for the
favors of the vast " backward" countries of Spanish and
Portuguese America possessed of incalculable natural
wealth and characterized by a genuinely extraordinary
purchasing power. Official and unofficial overtures look-
ing toward increased commercial and cultural relations
are being made with courteous and flattering insistence.

In recent years, and particularly during the past six
or eight years, the visits of "ambassadors of good-will"
to Latin America have followed one another in rapid
succession. Secretary Root, Secretary Knox, Secretary
Colby, Senator Burton, Robert Bacon, ex-president
Roosevelt, Viscount Bryce, M. Clemenceau, General
Mangin, ex-minister Andrea Torre of Italy, Paul Fort,
the French poet, a Spanish infanta, and numerous British,
French, Italian, German, Belgian, Japanese, and American
missions have journeyed to various Latin American coun-
tries in a more than personal capacity, and the King of
Spain is expected in South America as soon as internal
affairs in the Peninsula permit his projected tour.



2 Fallacies, Fancies, and Facts

The twentieth century conquest, as contrasted with that
of the sixteenth century, is one of peace and friendship.
No kidnapping of Aztec or Inca emperors, no enslavement
of superstitious Indians, no seizure of territories is con-
templated. Nations whose good-will must be won by
complex pacific means have grown up in the former free
and easy paradise of the Conquistadores.

European governments have for some scores of years
realized that Latin America has undergone a remarkable
change in the course of four centuries. To the average
American, however, Latin America has remained terra
incognita. Even our leaders in thought and politics have
not until lately grasped the significance of Latin America,
and not then in any adequate manner until convinced by
ocular demonstration.

"I believe," declared Theodore Eoosevelt in 1914, while
on his South American expedition, "that the present
century is the century of South America."

Eight years before, Mr. Root, habitually less emphatic,
but not less foresighted, had expressed the same idea.

At a banquet that was given last winter to a great and dis-
tinguished man, Lord Grey, Governor-General of Canada, he
said: "The nineteenth century was the century of the United
States; the twentieth century will be the century of Canada." I
should feel surer as a prophet if I were to say: "The twentieth
century will be the century of South America." I believe, with
him, in the great development of Canada; but just as the nine-
teenth century was the century of phenomenal development in
North America, I believe that no student can help seeing that
the twentieth century will be the century of phenomenal develop-
ment in South America.

The man whose reading on Latin America stopped with
his schoolboy days has probably not the faintest inkling
of the role now being played by Latin America in the
world at large. The Latin American republics have,
within a brief space, "completely marched off the map,"
in the words of Mr. Root, just as the German armies had
marched off the newly revised German maps a fortnight
after the outbreak of the Franco-Prussian War. ■

The Latin America of our school geographies was a



Fallacies, Fancies, and Facts 3

vast primitive tract overrun by jaguars, boa constrictors,
tapirs, llamas, monkeys, parrots, and condors, and
sparsely inhabited by picturesque gauchos, stolid Indians,
and indolent peons. That this Latin America has, of
course, not entirely ceased to exist, goes without saying.
Scatter some 80,000,000 people over a territory of about
8,000,000 square miles, and the difficulty of taming this
enormous area to civilized uses becomes clear.

But the primeval wilds of the Latin America of to-day
are not the primeval wilds of our schoolboy geographies.



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