ed to meet the financial strain. For the
protection of credit, bank holidays were declared, stock exchanges were
closed, moratoria were set up in nearly all the countries, taxes
and duties were increased, radical reductions in expenditure were
undertaken, and in a few cases large quantities of paper money were
issued.

With the European market thus wholly or partially cut off, the
Hispanic republics were forced to supply the consequent shortage with
manufactured articles and other goods from the United States and to send
thither their raw materials in exchange. To their northern neighbor they
had to turn also for pecuniary aid. A Pan-American financial conference
was held at Washington in 1915, and an international high commission was
appointed to carry its recommendations into effect. Gradually most of
the Hispanic countries came to show a favorable trade balance. Then, as
the war drew into its fourth year, several of them even began to enjoy
great prosperity. That Pan-Americanism had not meant much more than
cooperation for economic ends seemed evident when, on April 6, 1917,
the United States declared war on Germany. Instead of following
spontaneously in the wake of their great northern neighbor, the Hispanic
republics were divided by conflicting currents of opinion and hesitated
as to their proper course of procedure. While a majority of them
expressed approval of what the United States had done, and while Uruguay
for its part asserted that "no American country, which in defense of its
own rights should find itself in a state of war with nations of other
continents, would be treated as a belligerent," Mexico veered almost to
the other extreme by proposing that the republics of America agree to
lay an embargo on the shipment of munitions to the warring powers.

As a matter of fact, only seven out of the nineteen Hispanic nations saw
fit to imitate the example set by their northern neighbor and to declare
war on Germany. These were Cuba--in view of its "duty toward the United
States," Panama, Guatemala, Brazil, Honduras, Nicaragua, and Costa Rica.
Since the Dominican Republic at the time was under American military
control, it was not in a position to choose its course. Four countries
Ecuador, Peru, Bolivia, and Uruguay--broke off diplomatic relations
with Germany. The other seven republics--Mexico, Salvador, Colombia,
Venezuela, Chile, Argentina, and Paraguay--continued their formal
neutrality. In spite of a disclos