[3] It may be pointed out that for nearly seventy years the United States has acquired no territory from any Latin-American republic, except the perpetual lease of the canal zone, which was freely granted on most profitable conditions by the Republic of Panamá. Cuba and Panamá owe their separate existence, together with an unexampled prosperity and internal tranquillity, to the United States. In Nicaragua and Santo Domingo the great material benefits of interposition seem to outweigh sentimental objections. The financial obligations of Nicaragua have been adjusted through the help of the United States; and it may perhaps be felt that improved public solvency, material prosperity and internal security, though effected through outside aid, enhance instead of diminishing the national dignity.
"South America is the special theatre and object of German commercial industry." This emphatic declaration--reiterated in various forms by other German authorities--is the theme treated by Professor Gast, Director of the German South American Institute at Aix-la-Chapelle, in a pamphlet entitled _Deutschland und Süd-Amerika_, which may be regarded as a semi-official exposition of German objects and opportunities. The pamphlet appeared in the latter part of 1915. The events which have since occurred, however damaging they may be to German hopes, do not affect the views expressed. Since this advice from a German authority to Germans is a frank revelation of German views, it seems worth giving a very brief abstract of the main points, which the writer elaborates at great length, though he does not enter upon details of business method.
"The German Press," says Professor Gast, "has never published so much about Latin America as during this war. This proves the importance of German relations there and the need of clear ideas concerning them. An economic competition, intense beyond all example, has sprung up concerning Latin America. The chief feature is the 'Financial Offensive' of the United States. The present grouping of competitors is accidental and false. The natural conflict is between the United States on the one side, and on the other side all industrial and exporting peoples, including Japan. The United States, the most dangerous competitor, is handicapped by the higher cost of production in North America and by the want of that facility of adaptation to customers' needs in which Germany excels. Yet the war has revealed the weakness of German reputation. Everywhere the prevailing strain is antipathy to Germany. It is the duty of Germans to put aside resentment and to strengthen their economic position. For trade with the two Americas is the chief source of prosperity for modern German commerce, particularly that of Hamburg. And after the war this trans-Oceanic trade will be a matter of yet more urgent national importance."