COMPETITIVE CONDITIONS IN SOUTH AMERICAN TRADE. 173
Almost all of the foreign capital invested in the South American
countries before the war came from Europe, principally from Great
Britain, France, Germany, Belgium, and Spain. For example, in
Argentina at the end of 1914 there were in operation 33,272 kilometers
 (20,674 miles) of railroad. Of this about 14 per cent, all
narrow-gauge road, was owned by the State and 72 per cent was
British investment.
While British capital probably predominates in such public utilities
 as street railroads, light and power plants, gas plants, the German,
French, and Italian interests are very extensive. The investment in
the great meat packing and freezing plants, which make possible the
utilization of one of Argentina’s greatest natural resources—its grazing
 lands—was originally chiefly British, although in the last few years
large amounts of American capital have also been invested. Of the
total foreign capital in investments in Argentina in 1913, it is estimated
that about 53 per cent was British, 27 per cent French, 10 per cent
German, 6 per cent Belgian, 3 per cent Spanish, and about 1 per cent
American, the American being chiefly confined to the meat industry.
In general, the demand for foreign goods in all these enterprises
follows the nationality of the investment. It is the almost invariable
rule that where such public utilities as railroads, light and power
plants, street railways, etc., are financed by foreign capital, the
equipment 'and supplies must come from the country financing the
investment. And, in enterprises not of the public-utility type,
this rule largely holds true. The demand for foreign goods is not
limited to the equipment and supplies of the enterprises financed by
foreign capital. It is increased by the requirements of the employees,
many of whom come from the investing country, and by the demand
from a large portion of the native population, not connected with
such enterprises, who become acquainted with the foreign goods.
The handicap which the development of trade in American goods
has to overcome is therefore a serious one. While the value of imports
 from the United States to Argentina in 1913 formed about 15
per cent of the value of that country’s total imports, over 40 per cent
of the American goods imported consisted of petroleum products and
lumber, commodities in which no European nation can compets,
because they do not possess in sufficient abundance the natural
resources which produce them. Obviously, the demand for such
goods in Argentina does not follow the nationality of investment.
Agricultural machinery formed 10 per cent of the imports. In this
line, also, there has been little effective foreign competition, and
American goods are the only ones available. One-half the American
imports consisted of goods which are urgently needed by consumers in
Argentina, and which it is impossible to supply from Europe. The
other half of the American imports (or 74 per cent of the total imports