Germany and England are engaged in a war for commercial supremacy in South America, and the competition is very keen. In a financial sense England practically owns Argentina, and has investments there of about $2,000,000,000. In Brazil she has perhaps $650,000,000 invested in bonds and business enterprises. It is all invested in things that have helped to develop the resources, and much of it under government guarantee. Germany has not more than half as much money invested, but her representatives have been making serious inroads on the commerce of Great Britain. At the wharves and in the warehouses the boxes and bales with German marks on them seem to predominate. In the stores German goods are driving out British manufacturers, and it is this aggressiveness that has developed the hatred of Germany one finds among Englishmen everywhere. The German caters to what he believes the Brazilian or the Argentinian wants. Some of the methods pursued by German houses, however, are reprehensible. If an American or English article proves popular it will not be long until there will be a German imitation on the market, similar in style and make, at a little cheaper price. It will probably bear an English name too, in order to carry the deception still further. Brazil is impartial in her purchases, and opens her hospitable doors to the commerce of the world. If there is any leaning or favouritism, it is, I believe, in favour of the United States. The goods sold by European merchants we can sell if the effort is made. Trade here, as in other parts of the world, is secured by the firm who can sell the best goods at the least price, in the long run, and the German will lose out in some lines, because their quality is cheap the same as their price. The visit of Secretary Root and the battleship fleet did much to interest Brazilians in the United States; the former by the tact and the charm of his personality, the latter by the interest shown in South America. The people are still talking about both events. Money was spent lavishly. The state of São Paulo spent $250,000 on the occasion of the Root visit. Our diplomatic representatives have also been improved, and it would be difficult to find a better man for the place than our Ambassador to Brazil, Hon. Irving B. Dudley.