British Business in Latin America: A Shifting Tide

Ever wondered how British investments fared in Argentina and Uruguay from the late 1800s to the mid-1900s? The River Plate Trust Group, also known as Morris or Morrison, was a big player in this story. They controlled lots of public utilities and financial firms. Many people thought British investments in this region were risky due to nationalism, expropriations, and high taxes. But our story shows something different. After World War I, British investment in mortgage and financial activities didn't just disappear. Instead, it changed direction. Money started flowing out of Argentina and Uruguay to Great Britain, mostly in the form of dividends. This continued even during the Great Depression, with just a short pause between 1931 and 1934. It was like a new business cycle began, where investments stayed the same but the returns to Britain grew. Even public utility firms kept investing in the River Plate until the 1940s. Why? Because these firms were making good profits, which allowed them to pay high dividends to their shareholders. So, the story of British investment in Latin America isn't just about risk and loss. It's also about adaptation and profit.