The Fall of Silver in Mexico, 1870–1910, and Its Effect on American Investments

Since the end of World War II Americans interested in international economic affairs have faced a painful dilemma. Almost every set of international policies advanced during this period has called for the widespread use of American capital to assist in the development of underdeveloped areas in Latin America, Asia, and Africa. The United States government has furnished much of this capital during the last decade, but private capital has borne a share of the effort in the past and may well be called upon for a larger share in the future. Unfortunately, in a period of frequent small wars, revolutions, and expropriations, American investors naturally hesitate to send their capital abroad if they can invest it profitably at home. One of the most vexing problems in modern international economic relations is that of predicting or assuring regular returns from American investments abroad.