A SOCIALIST STATE?

Evening Star, Issue 21129, 15 June 1932, Page 6

A SOCIALIST STATE?

Probably the developments in Chile are not so alarming as they sound. With the announcement that a revolution had broken out, that the Montero Government had been overthrown, and that a Socialist State had been established, it was declared that the army and the air corps were the instigators of the movement. This Jast statement carries the suggestion that Socialism will not gain very much under the new regime. While it is conceivable that the fighting forces in unrujy countries may willingly join in revolutionary movements they are slow to imbibe Socialistic ideas. They understand autocracy better. The Chilean outbreak is merely a demonstration of a habit in Latin America. In the Central and South American republics Governments fall like autumn leaves in Vallombrosa, and the result is merely a change of dictators, for that is the position that the President and his associates really hold. The words “ Socialist Republic ” are the acceptance and adoption of a phrase that is in the air at the moment, for it cannot really be supposed that the people of Chile will bo given greater freedom or enlarged opportunities under the new Government than under its predecessor. This latest Administration, according to the preliminary messages, took to itself monopolistic powers over the major industries. It proposed to socialise the banking system, and hinted at confiscatory measures which would profoundly affect foreign capital. Seeing that immense sums of British and American money are invested in Chile, it could hardly be expected that this programme would be allowed to proceed very far without a check. The matter has been referred to in the House of Commons, and the Foreign Under-Secretary intimated that the British Government took the most serious view of the proposed, confiscatory measures. This is a warning to the Chilean insurgents, which in Lord Salisbury’s day would have been accompanied by a naval demonstration, it may be taken lor granted that, while no announcement has been made, the American State Department is also energetically intervening. Already apparently the representations that have been made have had a chastening effect. for the Chilean Minister of Finance has announced that nothing detrimental to any foreign interest was in immediate prospect, and that the banking proposals had been abandoned. The financial condition of Chile, like that of most of the other Latin Amei’ican States, has been critical for some time, largely as a consequence of over-borrow-ing. As a result of the general dissatisfaction there was a revolution last year. The Ibanez dictatorship fell, and Juan Montero, rather against his will, accepted the office of President from patriotic motives. He is not of the type of the average Latin American President. Hardly had he assumed office than plots were laid for his overthrow. It became necessary to establish martial Jaw, the President asserting that many of those who were responsible for the unfavourable moral and economic situation were conspiring to overthrow the Administration by means of false promises impossible to fulfil. The President declared that the movements were prompted by personal ambitions, which in tho light of the history of South America seems ex tremely probable. President Montero had to take drastic steps to try to restore financial equilibrium and to regain tbo country's credit. His measures helped the ambitious malcontents in tiicir revolutionary schemes. More than one sporadic rising occurred and was repressed. Now a major one has succeeded, and Jnan Esteban Montero joins the long list of deposed Latin American Presidents,