■■^f. THE EXTENSION \V FOREIGN TRADE RELATIONS UNITED STATES A Summary of the Opinions of United States Consuls and Leading Business IVlen throughout the World Prepared for use at the Fourth General Meeting of the Advisory Board of th'e Commercial JWuseum Philadelphia, October, 1902 Cornell University Library HF3029 .P54 The extension of the foreign trade relat olin 3 1924 030 152 726 Cornell University Library The original of this book is in the Cornell University Library. There are no known copyright restrictions in the United States on the use of the text. http://www.archive.org/details/cu31924030152726 THE EXTENSION FOREIGN TRADE RELATIONS UNITED STATES A Summary of the Opinions of United States Consuls and Leading Business Men throughout the World Prepared for use at the Fourth General Meeting of the ^^^jjuirnif,, Advisory Board of the Commercial Museum .\"^\ Y ''''V^ \'i Philadelphia, October, 1902 '1 '- . > ^^ PREFACE The Advisory Board of the Commercial Museum was con- stituted in June, 1896, to cooperate in the extension of American trade abroad. The membership of the Board includes many of the most prominent commercial organizations in the United States. The Board maintains relations with the Foreign Advisory Board, comprising similar organizations in the leading trade centers of other countries. Three general meetings of the Advisory Board have been held in the Commercial Museum at Philadelphia: In June, 1896, of the members of the Advisory Board in the United States. In June, 1897, "^^ the members of the Advisory Board throughout North, Central, and South America. In October, 1899, of the members of the Advisory Board throughout the world. The fourth meeting, called for October, 1902, comprises delegates from the United States only. The purpose of the meeting is to consider the subject of our foreign trade, and all useful means and methods of extending it, and to strengthen the cooperation to that end of all the com- mercial organizations of the country. It was thought that the meeting of the Board afforded a suitable opportunity for a general expression of opinion by the members of our Consular Service, who are doing such noble work in the extension of trade, and friendly business men in other countries who might point out notable advantages or dis- advantages. A letter was accordingly issued by the Director of the Commercial Museum inviting communications on the general trade outlook, and the replies so far as received in time for the meeting are herewith presented in the order of their receipt. Particular attention is called to the practical nature of these replies. Every one contains suggestions directly meriting con- sideration at the Advisory Board meetings. For general convenience an index to all the communications received will be found appended. INDEX COUNTRIES Argentine Republic, 8. Australia, i. Austria, 36, 37, 38. Azores, 62. Bahamas, 9. Barbados, 32, 33, 34, 35, 36. Brazil, 56, 57. Belgium, 50, 51. British Guiana, 43, 44, 45, 46. Canary Islands, 46, 47. Colombia, 20, 21, 22, 23. Chile, 52, 53, 54, 57. Egypt, 57. 58. France, 2, 3, 4, 5, 6, 25, 26, 38, 39, 40, 41. Germany, 7, 8, 10, 11, 26, 27, 28, 29, 41, 42, 43, 47, 54, 55. Guatemala, i, 2. Holland, 49, 50. Honduras, 13. Jamaica, 11, 12. Japan, 51, 52, 62, 63. Madeira, 45. Mexico, 10, 12, 13, 15, 16, 17, 18, 54, 61. New Brunswick, 14. Nicaragua, 36. Norway, 36. Portugal, 15, 16, 63, 64. Russia, 9. Scotland, 11, 18, 19. South Africa, 8, 58, 59, 60, 63. Spain, 6. Switzerland, 6, 55, 56. Syria, 44, 45. Venezuela, 23, 24, 25, 29, 30, 31, 32. ARTICLES Page Agents, Japan ... • • 52 Agencies, . France 39 Agricultural machinery, Chile. ... 53 Germany 48 American chambers of commerce, Germany . . . . . . 28 American export methods, France . 38 Asphalt, Venezuela 31 Automobiles wanted. South Africa .... 63 Avoid needless commissons, France . . 26 Bad packing, Japan . . .52 Bad canvassing, France . . 4 Beer, Canary Islands . .47 Boilers, Page South Africa 59 Britain leads, America follows. South Africa . ■ • 59 Brick machinery, Mexico ... 13 Careless delivery, France . . . 4 Cattle, Honduras 13 Canned goods, Scotland ... 11 Competent representation, Germany .... . " . 7 Competent travelers, Germany . . lo Commercial treaties, Germany 15 Commercial travelers, Portugal . . .64 Consistant effort, Germany 10 Conservative methods, Germany . . 42 Cultivated tastes, Page Page Grazing Colombia . , . Custom house fines. . 22 Venezuela ... Hardware, • 31 Mexico Circulars not effective, 13 Canary Islands Mexico .... 47 12 Austria Credits, ■ 37 High freights. South Africa . 58 Austria . Barbados .,38 • 35 Honest shipment, Germany 7 Canary Islands . ,46 How to secure foreign trade, Colombia . . 21 Venezuela . . , . • 25 Germany , .48 Insufficient postage. Guatemala . 2 Japan 62 Spain 6 Implements, Dearth of local industries. South Africa . . . • 59 Colombia . . . . 22 Importation not specialized, Depreciated currency. Colombia . 22 Colombia . . 21 Knowledge of customers' lan- Direct line of steamers, guage, South Africa 61 Germany 8 Direct sales, Lack of travelers. Syria . 44 Canary Islands .46 Direct communication. Labor saving machinery. France ... • 5 Scotland .... 19 Display of samples. Local agents vs. travelers, Holland ■ 49 Scotland . . 18 France ■ ■ 5 Local advertising. Drills, Holland • 50 Execution of orders, Local stocks, France . . • 40 France ... 39 Expert investigation. Matters of complaint, Germany . ■ 41 Saxony 54 Exports to France, Making up and packing, France . . 38 Austriai . 37 Foreign houses, Marking, Colombia . 21 Colombia . ... . 21 Foreign trade studies home mar- Mining machinery. kets. South Africa .58 Venezuela . . . 23 Metric system. Foreign trade studies home mar- Chile • 53 ket. Colombia . . 20 France . • 41 Portugal . . . 16 Food supplies. Need of direct shipping facilities , South Africa • 59 Canary Islands . ... .46 Footwear, Object to payments in advance Scotland 11 Mexico . ' 61 Foothold secured. Parcel post. South Africa 61 Australia . . I Freight rates, South Africa 8 Argentine Republic . . . 8 Packing for export, Fertilizer, Guatemala . . t Canary Islands ■ 47 Peace, Furniture, Venezuela . . . •31 Canary Islands ... ■ 47 Piece goods, ' Germany ■ 42 Japan ■ 51 South Africa ... . . . 60 Plows, Germany trade declining, Mexico . 12 South Africa . , . • 59 Primitive customs to be over- Get nearer the consumer. come, Belgium 51 France . . • 3 Page Page Primitive means of transport, Statistics, Colombia . . 20 Venezuela 32 Pro forma invoices, Study of routes. France . 26 France .... 4 Purchasing power. Sugar and molasses. Colombia . . . 22 Barbados • 33 Quotations (f.o.b. and obstacle) Systematic attention, Germany '48 Venezuela 24 Quotations, Systematic effort. Holland . 49 France 40 Quotations (c.i.f. ), Austria , 37 Austria 37 France 40 Belgium 51 Mexico ... 16 Scotland . . 19 Tariff regulations, Raw cotton. Austria 37 Japan . 62 France . . . 40 Reckless adventures. Tariff exclusion. Venezuela 30 Russia 9 Reciprocal treaties, ■ Terms of payment, Switzerland . 6 Venezuela 23 Reciprocity, Travelers, Mexico . . 16 Barbados . 35 Return cargoes, British Guiana 45 France . . 5 Germany 47 Resident agents. Scotland . 18 Guatemala 2 Scotland 19 Revolutions, Trial shipments. Venezuela . ... 29 Austria ... 38 Colombia . 20 Trade depression. Rich resources. Germany . . 15 Colombia 21 Trade stifled, Salesmen, Venezuela 30 Norway . 36 Trade samples, Shoes, Nicaraugua . . . 36 Germany . . 48 Trade essentials. Mexico 12 France .... 40 Japan ... 52 Transportation facilities Shipments, France . . . . 3 Germany 48 Unremitting effort, Ship direct. France 26 France . . 25 United States and West Africa Ship according to sample, Canary Islands . . . 46 Spain . 6 Vehicles, Small stocks, Scotland . . II Germany . . . 47 AUSTRALIA. From J. P. Bichardson & Co.,manufacturers'agents, indent and general merchants. MEIvBOURNE, July I, 1902. We frequently wish to post samples of goods from this country to our principals, to show the different requirements of the trade, but cannot do so owing to absence of a cheap method. The only existing means is the sample post, but this is limited to twelve ounces — hence our difficulty. It has occurred to us that the present time is opportune for you to ap- proach the Members of Congress from your district, seeing that Australian "Federation" is accomplished, and, the Postal Department having passed under Federal control, there is only one government to approach, instead of six, as was the case under pre-existing arrangements. We may point out that the parcels post will save even more money to manufacturers and merchants in America than to us, as they could send up to eleven pounds weight to Australia by this means, at a fraction of what it now costs to send the same weight through an express company or any existing means of transportation. For your information permit us to give you a case in point. We re- ceived a parcel from Rochester, New York, to-day, on which the transporta- tion charges were $2.52. Had the shippers been able to send this by parcels post, the cost would not have exceeded seventy-five cents. In addition to this, we had to pay our customs agent sixty cents for clearing it through the customs, and thirty-six cents for delivery, whereas had it come by parcels post this additional expense would have been saved, as the postal authorities would have notified us of arrival, we would have called at the post office, presented our invoice, and got delivery without any additional expense. You may not be aware that a parcels post already exists between America and New Zealand. Such is the fact, however, and to save expense we get our friends in America to send parcels for us to friends of ours in New Zealand, and have them re-posted to us from there. Only last mail we had - occasion to send some samples to a firm in America, and were compelled to post the parcel to friends in Auckland, who in turn posted it to destination for seventy-five cents, whereas it would have cost us $2.50 to send the same parcel from here, owing to lack of facilities for doing so. Americans want Australian trade, and, in our opinion, one of the best helps will be the parcels post, as it will permit travelers, direct representa- tives of American firms, and merchants handling American goods to foward to their principals and correspondents, at reasonable rates, samples of goods that have a ready sale, as well as those that are adapted to the country's requirements, and not produced by the American manufacturers, which they cannot do under existing conditions. Parcel Post GUATEMALA. From James C. McNally, U. S. Consul-General at Guatemala City. Gdatemai,a, Sept. 5, 1902. Of all the objections advanced by importers against American shippers, none is so universal as that of inefficient and negligent packing. While foreign business men will admit the advancement of American products and industries they are puzzled at our backwardness in this all-important element of trade, and look upon it, not as a disregard for the arrival of the goods intact but as an accomplishment that we have not as yet mastered. While our products are acknowledged to be superior in style and quality, which p„<,iii„s. elements appeal strongly to the importer about to place an order, neverthe- ^.^^ Export less the fear that the goods will arrive damaged will inevitably intervene to influence the order to houses other than American. I have at various times interviewed the large importers of all l,ines of goods as to the reason why American houses having the better articles are not favored more Invariably the reply is the stereotyped one: " Your people cannot pack for this market. KoNidoiit C'rertits Many of our merchants desiring to remedy this fault have asked to be in formed as to the reasons for the arrival of American goods in such condition, as well as the necessity of special packing different from that ot gooas shipped to Europe. The lack of knowledge of shipping conditions is un- doubtedly primarily the cause of our weak packing. The inadequacy ot facilities for landing in these countries, where the ship does not reach a whart but is anchored a distance from the pier and unloaded by the lighterage sys- tem, is undoubtedly the cause for many complaints in the premises; and yet one would think that exporters from the United States would at least regard the Consular reports on such matters, and if thought too radical it would pay them to send a representative to countries where they hope to open a market for their products, to investigate conditions for themselves. The lighterage system invites much rough usage of breakable goods, that only a specially strong and systematic packing will withstand the careless and oftentimes inexcusable handling of goods by the peon laborers employed. In this the foreign business houses are in advance of American exporters. Each house, if not having a resident agent in these countries, usually sends a member of the firm to look over the ground and fully acquaint himself with the condi- tions that will influence trade in their direction. Oftentimes these export houses send young men to serve an apprenticeship behind the counter of a business house of a similar line. This apprentice is usually a son or relative of a member of the firm in Europe, and he is here not only to study the wants of the people, but to fully acquaint himself with the details of landing goods whole and entire in the city of Guatemala, This resident system is a practical handicap to American ambitions. The agent usually covers the five republics of Central America, having his headquarters in Guatemala City, which is the largest in Central America. They have goods on hand to immediately supply, at least in part, the requirements ot their customers, as well as to guard the accounts of their principals. Credit is another drawback to our success in these countries. European houses will readily grant a year charging interest on the account, while American houses will hardly extend the time beyond sixty days. When one considers that the time required to land goods in this market is about thirty days, the time allowed to pay up is not sufficient to win the merchant here, who can hold off for a year, and longer if necessary. Packing and credits are the only drawbacks to our acquisition of the trade of Guatemala. European houses are pleased to make good if their goods arrive in a damaged condition, but American houses will not only refuse to recompense the importer, but become incensed that he should ask for a rebate. American shippers frequently ship goods inferior to what is ordered, and will then insist that the article is of a superior quality. This assump- tion of independence and indifference to the rights of customers has turned away many whose affiliations were with American business houses by virtue of the superior quality of the goods produced there. Superior quality cuts but little figure now in these countries. The gloss and veneering so perfected by the foreign shippers catches the eye of the contemplating purchaser, who prefers three new articles to one, even if the one will outlast the others. Of course cheapness contributes to influence the purchase. FRANCE. From Hilary S. Brunot, U. S, Consul at St. Etienne. ST. Etienne, Sept. 6, 1902. With few exceptions the farmers in this region plow with iron-shod wooden plows of primitive design. After this superficial scraping, the ground is harrowed by a couple of small logs with iron or wooden pins and a drag; the seeding is done by hand, after the mode in vogue forty years ago in America. Because weeds are plentiful and the crop is hampered with cockle, daisies, and other weeds, the growing crop must be weeded about twice during the progressing season. When reaping-time comes, the work is done with sickles in the case of grain crops. After the sheaves are suffi- ciently dry, they are threshed out by flails (smaller flails than I ever saw before), and then the grain is winnowed with large sieves made of osiers, a kind of water willow that grows profusely along the rivers. The larger part of the cleaned wheat is then sold and shipped away to the mills, and later on the bakers buy back the flour and sell bread to the town consumers; but a sufficient quantity of flour is turned over to the local bakers, under contracts to return it in the form of bread during the year, as it is needed. I have been speaking of the methods to-day in vogue in the interior of France, where the great agricultural population exists, and of my particular district (six departments). From this description it should be easily discerned what the needs of these farmers are. Even good scythes would be an improvement on sickles; grain cradles, mowers, horse rakes, tedders, self-binders, etc., would follow naturally. Plows and harrows are needed at once, for the French farmers are apt to know a good thing when they see it. But here I must add that it is absolutely necessary that the best s mples of such implements should be brought here by men capable of working them, and capable also of establish- ing a depot for implements, supplies, and repairs. Such agents must not be "fancy" men, but men willing to throw off their coats and enlist young farmers as aids-de-camp to carry out their instructions in every small com- munity dependent upon the central depot. So much for this subject; it is for our enterprising manufacturers to do the rest. Actual results can only be achieved by personal effort, following the same methods that prevailed and which induced American farmers to adopt improved machinery and to be finally convinced of its economy. In this connection it should be noticed that oxen are in general use on farms instead of horses, and all machinery should be adapted to their slower gait. But let it be well borne in mind that money spent for a " general European agent," or for circulars, even if the latter are printed in the foreign language, is for the most pait money thrown away. Vehicles. — Supplies, spokes (hickory), hubs (locust), long shafts, and light hard-wood material capable of being bent into top frames, rough-fin- ished wood for carriage and automobile bodies; handles for axes, hatchets, miners' picks, and other tools, the users of which would quickly appreciate the utility of our strong hard woods. All vehicle supplies intended for sale in Europe should be of the larger sizes, simply because the trade prefers them; it is better to endeavor to meet existing conditions. To the foregoing may be added rough-cut furniture woods. The cheap- ness of hand labor makes the sale of wood-working machinery difficult. Looms. — The fact that there are at least 30,000 looms in use in this dis- trict on silk ribbons and cotton goods may suggest that there is room for more, or of looms of improved pattern. The list of American-manufactured goods already on this market has grown too long to mention, and I am happy to say that it is being visibly lengthened year by year, though a very smill percentage is imported directly, but comes through Paris jobbing houses. From Thornwell Haynes, U. S. Consul at Rouen. Rouen, August 25, 1902. What are the Principal Causes which now Operate to Prevent Further Development of Trade between this District and the United States f These are four: First, the limited knowledge that Americans have of the commercial value of this port; second, the feeble efforts made in this direction by American exporters; third, the lack of direct steamship com- munication between Rouen and the United States; and fourth, the slowness of the Normans to leave old channels of trade. As to the first, it can be truthfully said that the value of Rouen as a port study of Routes Bad Canvassing Careless Delivery and distributing center is virtually unknown to the commercial world of America. Its advantages remain vear after year unregarded, and thousands of dollars are wasted annually in shipping goods into northern France and adjacent territory by the way of Liverpool and other ports, avoiding Rouen as a port of entrv. . Taking all things into consideration, there is hardly a port in France, beginning with Nice on the south all the way around toDunkerque on the north, that possesses shipping facilities superior to those of Rouen. I do not mean that this port is superior to all others of France as regards the anchor- age of vessels. The depth of water in a port is not always an indication of that port's facilities. But even as regards this point, Rouen possesses advan- tages of which many people are ignorant. During the last twelve months twelve ships have entered here carrying more than 5000 tons, eleven of which drew twenty-three feet of water. Rouen bases its claims of superiority upon the one foundation that under- lies all material advancement — viz., transportation facilities. A moment's reflection will show that those cities and nations are rich, enlightened, and most prosperous whose transportation facilities are best and most extended. There is probably no Eluropean city with inland navigable waterways superior to those of this place. Here a seaport and fluvial port mingle their waters, and through the latter, with its network of canals, practically all of northern and central France is touched, reaching into Belgium, to Rheims, Burgundy, Dijon, Champagne, and even Germany, the principal connection whh which is afforded by the depression in the Vosges Mountains drained by the Zorn, called the Troupe de Saverne, and by the broad plateau of Lorraine, both of which are traversed by the canal joining the Marne, afHuent of the Seine with the Rhine. Ocean-going vessels, at least those of England, France, Russia, Austria — in fact, of nearly all countries except the United States — profit b}' these numerous and excellent waterways. They come as far as this port and place their cargoes directly into lighters, to be carried by water to their journey's end. Such a mode of transit should be of especial interest to American shippers, from the fact that in the delivery of all exportations from the United States, time is of secondary consideration. Our country is too far away from France to attempt the shipment of perishable goods. We ship a class of products that compels us to be more concerned about the cheapness of delivery than about the quickness of it, and in this respect the fluvial or inland traffic of Rouen should engage our attention. Producers and shippers in America may overlook this difference between inland and foreign commerce. The shippers of melons from Georgia to the North must reckon upon quickness of transit, but the shippers of cotton from New Orleans to Liverpool, or of oil from Philadelphia to Rouen, need figure only upon the expense. Hence, those foreign ports possessing distributing facilities by means of water are of the grearest value to United States commerce. The efforts made by Americans to enter this market, if efforts they may be called, are very feeble. This is attested by the persistency of American shippers to quote prices exclusive of all costs, such as freight and insurance; to refuse long credits, to which all France is accustomed; to disregard the metric system of weights, measures, and money values; to persist in selling what he thinks the buyer ought to have, instead of what the buyer wants; to fail in the careful attention which all goods require to reach the customer in the best condition ; and to overlook local requirements. It may be added that improper introduction often causes prejudice against American goods. In this city American machinery was recently installed in a manufacturing concern. All the details were carefully looked after, and the circumstances of climate, care, use, etc., taken into considera- tion, under the personal supervision of Americans. The success of this instal- lation promises a further market to that class of articles. In a neighboring city an American brick-drying macjiine was improperly constructed. The result was a failure, a loss of reputation, and a closing of that market, and perhaps others, to the sale of the product mentioned. The same is true of American locomotives when ignorantly handled, of coal when improperly used, of agricultural implements when not correctly employed, and so on. Not only must deference be paid to the customs of a country when making a sale, but the goods must be delivered in proper shape. No American exporter can build up a permanent and successful business in France unless he works for the success of his customers on this side. The third cause mentioned above seems no further toward fulfillment than in 1896, when the British Consul at Rouen, in his annual report, said that a British firm of shipowners intended to try to establish a regular line of steamers between New Orleans and Rouen. Last year the American Chamber of Commerce at Paris made inquiries at this Consulate as to the amount of goods going from this port to New Orleans. This district is renowned for its manufacture of cloth, and it would appear strange if steamers could not profitably bring the raw material of the staple industry of this district, cotton, direct from the field of production to the place of consumption. If such an attempt should be made by Americans, it would undoubtedly be well supported by the Rouen brokers, spinners, and manu- facturers, who would no longer be compelled to buy their cotton from Havre, as, with the exception of a little Indian cotton that comes here by way of London, they do at present. Several British vessels ply regularly between this port and Philadelphia, but they are tank steamers, and, of course, invariably bring oil. Only one American vessel has entered this port for years, the five-masted "Rebecca Palmer" coming last year with a cargo of naptha. Everyone says that the greatest difficulty in establishing a Rouen- American steamship service would be the necessity of returning in ballast. Apropos of this, I was told only yesterday by a well-known French live- stock dealer that shipments of the famous Percheron horses to Illinois, Iowa, and Nebraska, and States further west were on the increase. Formerly these were shipped from Havre, where no English vessel would stop to pay pilotage, harbor dues, etc., for a less number than one hundred horses. Now. however, the Atlantic Transport Line and others send a small boat over for a lot as small as thirty, which is taken to Southampton or London and put on board. In addition to this, it might be added that during the four quarters of the year ending June 30, 1902, there were shipped from this district to America over $217,000 worth of goods, the greater portion of which went by way of Hull. Of this amount over $144,000 worth consisted of waste bagging, rags, etc., for papermaking. It seems that something better than sand or water could be found for ballast. What Measures wotdd tend to Remove such Causes and Increase Trade ? The first cause alluded to above could be best removed by such work as the Philadelphia Commercial Mu.seum is doing in publishing this report- Rouen's port facilities need to be known to American shippers. It is to be supposed that the feeble efforts made by Americans m this direction will continue as long as less diflScult markets present themselves elsewhere With the exception of grain, oil, and timber, no American products enter direct here by water. Many imported articles, however, come by way of Liverpool or some other port, and then by way of Pans, and this will likely continue until the third cause mentioned above is removed. Expositions of American goods in the principal cities of France would do much to extend our trade here. A Frenchman must have ocular and tangible demonstration of the validity of every claim made for an article. All the United States Consuls in France reiterate in their reports the useless- ness of sending circulars, letters, etc., in English The director of a firm making heating apparatus told me recently that he had learned that English circulars were worth nothing, that French circulars were a little better, that commercial travelers understanding French were still better, and that an exposition of goods fulfilled all requirements. He represented an American company which regarded this country— where only stoves and grates were Direct Coininuiii- cation Return Carj^oes nisplay of Samples known-as a splendid field for trade; and, not content with exposit ons of its products, had established a large factory of up-to-date ^^f ting appliances near the center of France. The raw product comes from America and the finished goods are gradually being sold all over the country So tar tms enterprising firm has a monopoly of the business, and is f^^^eeding wonder- fully Only earnest, persistent endeavors will win m face of Old World conservatism, and this kind of endeavor means brains and money; but in tne end it brings its due reward. Credits Ship ac- cording- to Sample SPAIN. From Henderson Eider, U. S. Vice-Consul-General at Barcelona. Barcelona, August 26, 1902. Negotiations are well advanced for the establishment here of a general importing agency for American goods, about which full particulars will be furnished in due course. The principal difficulty we have to overcome is the disinclination of American firms to sell except on strictly cash terms, whereas European sellers grant from one to three, and even four months' terras. Scrupulous care in the execution of orders, where payment is exacted before shipment of the goods, and a fair adjustment of any dispute which may arise afterwards in the event of a possible mistake, will go far toward reconciling Spanish buyers to this form of reimbursement and to dissipating the want of confidence they now feel. From Dean E. Wood, U. S. Vice-Consul at Madrid. Madrid, August 31, 1902. Taking into consideration the heavy handicap American goods meet with in Spain, they are holding their own in a most excellent manner. I have been here two years, and have seen far more American goods during the last year than the first. SWITZERLAND. From George Gifford, D. S. Consul at Basle. Basle, August 25, 1902. The whole question of our future trade with Switzerland is dominated by the renewal of the treaty of commerce between the two countries. The abrogation of that treaty has not, so far, produced any very serious results, because the rates of duty under the general tariff, as distinguished from the Feciprocal conventional duties hitherto applicable to our merchandise, have not affected Treaties many of the articles exported in large quantities trom the United States to this country. There is no prejudice against American goods here — there is, rather, a prejudice in favor of them — and it frequently happens that we sell nearly as many wares to Switzerland as we buj' there. The people buy all the goods they want and can pay for where they can obtain the best terms. When their crops of cereals and fruit are short, they must, under any cir- cumstances, buy of us. But our manufactured articles can nearly all be ob- tained elsewhere in case of need, and they will be so obtained if the new Swiss general tariff now under discussion by the legislative bodies at Berne goes into effect without being tempered by a new commercial treaty. For the new duties will be decidedly protective and often prohibitory even; and, unlike those prescribed by the law now in force, they will shut out exactly those American manufactures that are most in demand, and also the cereals and raw material that can by any possibility be procured elsewhere or dis- pensed with altogether. At least half our important sales to Switzerland depend on the treaty that is yet to be made and ratified. Seven million dollars a year are worth saving even by so rich a country as ours. And our sales of fourteen mil- lions are susceptible of considerable increase so soon as our treaty relations are again on a rational commercial basis and the means and rates of trans- portation have been improved, as thev no doubt will be, so as to permit the introduction of American coal and other bulky articles into this iuland country. From J. J. McCallum, U. S. Consul-General at St. Gall. St. Gai,l, Sept. I, 1892. I can see no possibility of extending our trade in this consular district. GERMANY. From a United States Consul stationed in Saxony. (Name withheld by request.) September 8, 1902. _ Unfortunately, from a statistical point, most of the trade with the United States — I refer to imports — is done through the general agents at Hamburg. Bremen, Berlin, and some other of the large mercantile centers; it is thus impossible for me to give you an accurate report on what is purchased from our country by this district; nor is it, for your purpose, important. The question, so often and ably treated in the Consular Reports by General Mason and others in the consular service, is, how to increase the sales of American articles. Many have been the suggestions, by Consuls and others. Some Consuls have suggested an exhibit in connection with the Consulate, where the pro- spective purchaser could see the article he required, and, from the Consul, obtain the information he might require. Certainly there are many advantages in the idea, but in order to carry it out as it should be the clerical force at the Consulate would have to be increased; and this would be a question which would have to have the approval of the Secretary of State. I hold the plan is one that is well worthy of the consideration of your Advisory Board when it meets next October. There is one recommendation, in which all Consuls agree: To make, increase, and hold trade, the American manufacturer must have live agents — agents who understand the language; who understand the wants of the people and their manner of purchase, and who are Americans dealing only in American goods. This material we have in our mercantile traveler; there is none better, if he understands the language of the country in which he is to operate. I can quite understand that it might be an expensive venture for one manufacturer to undertake; but if a number were to enter into an agree- ment to pay the expenses and pool the receipts, I believe the actual cost to each would be small compared with the advantages derived. It might be given a trial for a couple of years; if then unsatisfactory, it could be abandoned. General agents, purchasing American goods on their own account and risk, are certainly — in .small articles, such as preserved fruits and vegetables and all manner of canned goods — rather a disadvantage to our trade, as in most instances they ask far too high a profit, making what to our people is a necessary and every-day food a thing of luxury, and confining the sale to the favored and rich class; while the aim is to make as large sales as possible on small profit for the individual sale, but reaping a large one on the amount. There is one word more on this subject: The articles must be up to the standard of sample: they must not fall below in quality: it was in that way that our trade in cheeses was ruined in England through the dishonest ship- ment of inferior articles. Your Commercial Museum, through its Advisory Board, should, in a way, form a court of appeal, where the foreign purchaser receiving goods not up to sample and contract could in some way have redress. c:oni|>eloiit Represen- tation Honest Shipments From Max Bouchsein, U. S. Consul at Barmen. Barmen, August 25, 1902, Kiion'led of From time to time our Consuls have, in their reports to the Department of State, which were published in the 'Daily Consular Reports" and '■Com- mercial Relations," or in direct correspondence with our manufacturers, made suggestions which, when accepted, have no doubt helped to increase our exports. As far as Germany is concerned, it is of the utmost importance I'listonier-s that American agents sent abroad should speak the German language fluently, •^""Kiias-e that the catalogues and price lists be printed in German, and. if possible, prices quoted in Reichsmarks and Pfennige (German standard value), that the terms of sale, mode of packing, etc., are about the same as the ones in vogue in Germany. The official statistics of Germany show that there has been a steady in- crease in the imports from the United States from year to year, excepting a small falling off during last year, which no doubt was due to general de- pression in business, which made itself felt about the middle of 1900 and the end of which cannot yet be foreseen. The proposed new tariff, if enacted, will almost double the import duties on meats, grains, and food products in general, and although Germany is largely depending upon the importation of these products, it will still tend to lessen our exports to Germany. It is generally understood that the present German Minister of Com- merce is in favor of new commercial treaties, and it is to be hoped that our next Congress will pass laws by which extreme protection will yield to a broad and enlightened policy of reciprocity. I do not mean free trade, nor a tariff for revenue only, but a system so ably advocated by our illustrious Mr. Blaine and by our great and beloved martyred President McKinley in his last speech at Buffalo. Rates ARGENTINE REPUBLIC. From A. Bernat, manufacturer. Buenos Aires, August 21, 1902. I hope that you will use your influence to have freight rates from America compete with those of England, for these amount to i6 per cent, of the cost, as compared with 6^ per cent, from England. Parcel Post SOUTH AFRICA. From "W". Stanley Hollls, U. S. Consul at Delagoa Bay. IvODRBNfo Marquez, June 18, 1902. The express companies in the United States are probably not aware that there is a parcels post system between Lourenjo Marquez and Em^land Articles sent from England to this port by parcels post are upon arrival here, exempt trom formal entry and declaration in the Custom House This means a great saving, as the formal entries, declarations, etc and the stamps on the documents, together with the customs brokers' charges, amount to anywhere from $1 50 to f2.5o, to say nothing of the loss of time This is a matter of the greatest importance to American manufacturers who wish to extend their trade m this part of the world, as evervthini? depends upon the way in which the small trial orders, which are sent as feelers, are filled. fn fill *''^'u l'"^^,°'^'^'^>^^ ""'l filled satisfactorily, good business will be sure s^nd^nro^ 'future orYerT ''^' --'-f-'°"'y. ^^ tends to discourage the RUSSIA. From a United States Consul stationed in Central Russia. (Name withheld by request.) September i, 1902. The American trade in my consular district has greatly diminished in cpnsequence of the high tariff duties which have been enforced by the Minister of Finance on all kinds of machinery, bicycles, rosin, etc. The Russian dealers buy only such machinery that cannot be replaced by manu- facturers of other countries. American-manufactured goods have always had the preference, but now the German manufacturers have taken advantage of the high duties placed on American goods and commenced to copy all American machinery, and are now supplying the Russian markets at cheaper prices and giving longer credits A new order has been issued by the Ministry of Ways and Means of Communication, prohibiting all Government and private railways to pur- chase any supplies that have not been manufactured in Russia. A special committee has been appointed lately under the supervision of a high Government official, to decide and place all orders for the require- ments of Government and private railways, as cars, rails, bridges, machinery, etc., amongst the Russian manufacturers. A meeting was held, at which it was decided to place the orders, amounting to $20,000,000, amongst Russian manufacturers only. The Army and Navy orders also will come in under the same instructions. A good business could be started in Russia by opening up a boot and shoe factory, laundries, furniture, etc. Turin' exclusion BAHAMAS. From Thos. J. McLain. U. S. Consul at Nassau. Nassau, August 21, 1902. The entire volume of trade of this colony, which is a. minor British possession, is very small, not exceeding, say, JS2, 500,000, exports and imports included, per annum, of which, however, it is gratifying to add that the United States controls at least three-fourths. Trade has been steadily tending towards the United States for the last twenty-five years, until now less than one-fourth is left with Great Britain, the mother country, and this is gradually being reduced. Of course, the habit of buying in Great Britain, the fact that this is a British colony, the cheapness of sundry articles over American prices, and a longer term of credit, are the causes which keep even the small portion of trade that is left to Great Britain. ■, j . u^ • ■ u t All that our merchants and manufacturers need do to obtain in a short time practically this remnant of trade is to continue in the future the course they have pursued in the past. , . , . ■ » • ti, A number of New York merchants (with which American port is the bulk of our steam communication) have and are devoting their time and attention to carefully noting and supplying the various wants of this colony; and their efforts, with those of their Consul, are steadily capturing tor American firms the whole trade of the colony. . , ,, j j The exports of the Bahamas are sponges, sisal hemp, fruit, salt, dyewoods, cabinet woods and shells. The imports are provisions, groceries, dry goods, clothing, boots and shoes, hardware, lumber, machinery, beer, spirits, coal, ice glassware, earthenware, kerosene, etc. „ . . ' There are no new enterprises in prospect at present offering investment to American capital. If any such present themselves those likely to be interested in the United States will receive prompt and detailed information from this Consulate. MEXICO. From James I. Long, U. S. Consular Agent at Parral, State of Chihuahua. PaRRAL, August 20, 1902. The principal imports from the United States into this district consist of general hardware, agricultural implements, shoes, groceries, general mer- chandise, mining supplies, and mining machinery. There are quite a good many dry goods imported from Europe. The European merchants give longer credit than the American merchants and pay more attention to putting up their goods to suit the Mexican trade. I believe it would be a very good plan for the Museum to send a repre- sentative to this country, to make a careful study of the general conditions of the trade here, and especially the manner of packing required by the Mexican trade. GERMANY. From Edward H. Ozmun, U. S. Consul at Stuttgart, STUTTGART, Sept. 8, igo2. For the advancement of American trade in this consular district, in my t'oiniietent opinion the chief necessity is the employment of traveling men, who not Travelers only know the business but the "trade," z.,?. the customers and the general conditions here surrounding that particular department, and once a good business is worked up, to stick to it and never let it run down. Much of the American goods sold here comes from Hamburg and Berlin, the dealers here being obliged to run after the goods. In many instances they don't know how to get American goods, and I am frequently asked for the addresses of American manufacturers. It was only the other day a large dealer in china said that he had, about two years before, succeeded by chance in getting some American cut-glass ware, which he at once sold off at a good profit, and had been trying ever since to get the address of some such manufacturer in America. So far as I know, there seems to have been no serious attempt on the part of an American manufacturer to work up a business in this district. The American goods that are sold here to a very large extent fall into the lap of the American manufacturer. They are mostly ordered from commission houses, in London, Hamburg, and Berlin, dealing in such commodities. The "efforts" of American manufacturers to enter into this market have been for the most part tentative, and often contrary to the advice given almost daily by the Consuls for years — sending circulars or periodicals printed in the English language, with prices in United States currency, demanding cash, not upon the arrival of the goods, but f.o.b New York, Chicago, or elsewhere. Happy, joyous people, confirmed in the belief that the world reads English and that there is no such thing as competition, with a preju- dice against American goods. The only way to get trade anywhere is to go after it, and meet the competition which here, in almost all cases, gives three months' time. There are plenty of traveling men to be had who can' read, write, and speak Eng- lish and German, who, if employed, would increase the sale of American goods many fold. Conditions here in that respect do not differ from those at home, and merchandise needs to be " talked up " on the spot and save in very exceptional cases, trade does not run after goods anywhere A demand for American-made furniture of medium price and cheap furniture, can easily be created here, for there is practically no furniture for the poor and people in moderate circumstances worthy of the name and what there is, is clumsy and dear. * T'lTv.'^ ^l^° ^ ^°°^ 'f^rV.^'^ awaiting the man with sufficient enterprise to establish an American shoe store here. These shoes are sold here but not pushed, as they are sold m a shop where other shoes of German manufacture are on sale. <'oii!!>i!!«leut Ktl'ort American hardware, sash doors and blinds, wagons, carts, thread, cut glass, silverware, silver-plated ware, and American novelties; American cot- ton fabrics — the beautiful colored ones — and "Madras" goods, would also be readily sold here. SCOTLAND. From Jolin C. Higgins, U, S. Consul at Dundee. Dundee, Sept. lo, 1902. Dundee exports to the United States annually S% million dollars' worth of manufactured goods — chiefly jute and linens. Its population is 170,000. It has almost no transient visitors. It is set in a nook off from the lines that tourists take. Its hotels are mostly small. It has but little wholesale trade, except in groceries or provisions. Glasgow within sixty miles, London five hundred miles off, are great markets, and seem to carry the stocks from which Dundee is supplied. I find, however, that many "American" goods are sold here. Boots Tootwear and shoes especially are directly imported and displayed under their true colors, and are meeting with large demand. Nor is there any lack of Amer- Canneil ican provisions — tinned goods, etc.; the shops are all well supplied with CJoods them, and the proprietors speak highly of them. At least one of the daily papers is printed on American presses. The principal shoe manufactory is using American machines and much American leather. Shipbuilding, quite a leading industry, does not need much aid from us. But whatever may be needed, London or other commercial travelers are always on hand to supply. It is a matter of surprise to an American that our light buggies and other vehicles are not seen upon the roads or streets— only the heavier -^^^,,1^,^^ vehicles peculiar to this country; the lighter work is done by heavy two- wheeled carts without tops. Nor do I see any evidence of a wish to change. I determined to have American bicycles introduced into Dundee, and encouraged an American to become agent for a New England machine. It was sold at a lower price than British machines, and soon had a large sale. Unfortunately, the agent left the country suddenly, and the business ceased. The effect upon the public was, however, inevitably adverse to another such experiment. We are informed that American machines are no longer meeting with the large demand of a few years ago, and that American com- panies have generally transferred their London agency to the Continent. The market for American agricultural implements seems to be well looked after by the agents in this country and their local sub-agents. We are constantly in receipt of letters from American merchants and manufacturers asking the names of firms engaged in their lines of trade, and always with great pleasure supply them. To sum up the whole matter, we regret to have to say that we do not know of a single line of American goods on which we can advise a strenuous advance upon this market. We are, however, more than wilhng to have suggestions at all times, upon receipt of which we will, by mquiry, feel the market and report upon it. JAMAICA. From Nicholas E. Snyder, U. S. Consular Agent at Port Antonio. Port Antonio, August 21, 1902. Fully 80 per cent, of the imports arriving in this section of the island are from the United States. The only line of trade that, in my opmion could or might be extended is that of hardware and galvanized corrugated iron roofing known to the trade as "spelter." This, I am ^formed, is im- ported from England at much cheaper rates than can be obtained jn the United States It is shipped in bundles of twenty sheets, each of which is six feet iu length by two in width and weighs ten pounds seven ounces, gauge twenty-eight, and has five corrugations to the sheet I am also in- forrned that it is imported at a cost of /13 (about I65), less 2^4 percent, discount, per ton of twenty hundredweight. The duty is 167^ per cent, ad valorem. , ^. , There is a steady growth of demand for this article, as the natives, who iu the past have used thatch for roofing, are now using almost exclusively corrugated iron for this purpose, it being cheaper than shingles. It is also used to a considerable extent for fencing. Hardware MEXICO. From Samuel E. Magill, U. S. Consul at Tampico. Tampico, Sept. II, 1902. The population of this consular district has, in the past, made few demands on the outside world for its supplies. l/ocated in a fertile region just within the tropics, and having no manufacturing interests aside from the refining of imported crude oil, its people do not need coal for warmth nor much lumber for their houses, and only the clothing necessary for decency. With little effort the soil produces the few staples necessary to sustain life, and, were they not forced on them, the railroad and the steamboat would have been dispensed with gladly. But when, fifteen years ago, the railroad did come, and through the impulse of its energetic American founders this port was made possible for deep-water ships instead of mere lighters and launches, there began a demand for some of the good things of the outside world, which demand has never been great, but is increasing At any rate, the local Mexican sees pa.ssing through this port a stream of merchandise for his brother in the interior, and he is gradually creating within himself and his neighbor a desire for similar luxuries and novelties. This demand can hardly be forced: it must come slowly and by the effect of example. The first American plow used here was intentionally broken by the peon using it, the next lot was tolerated, until now the writer has seen, within twenty, miles of Tampico, ten American plows drawn by American mules working together in the same field, driven by Mexicans; and the owner of that hacienda told me at the time that he had his men so well trained that he expected to have a traction engine pulling a gang plow inside of two years. The lesson to be learned from the above is obvious and should be con- •sidered by the manufacturer seeking business in Mexico. American shoes are worn by everybody who can afford to purchase them. No other shoes are imported; our shoe interests have this field to themselves; yet I have seen a cutting of prices and a forcing of the market here which will take much hard work and fluent talk to explain when the shoe salesmen come again to this field with the prices regular. Of course, it is understood by the trade in the States that the object was to dispose of a lot of tan shoes that could not be sold in the North; but the customer here will be slow to pay 50 per cent, more for his next pair of American shoes than for the last when no better quality is evident, only a change in style, thereby giving an impetus to the local shoemaker, who is improving slowly in his methods of tanning and the quality of his output. American-made hardware is making headway against the German which has had the market. Consumers here are learning that cheapness is not as essential as quality and durability; same may also be said of tools The German hardware manufacturers secured this trade by placing their own men m charge of stores, which they opened in all the important cities of Mexico; but the persistent pushing of a large St. I^ouis house, together with the ,good quality of their output, has brought American hardware into prominence. During the past five years, only American coal and coke were imported into Mexico via Tampico, but the anthracite strike has enabled the German coke to- get into this market, 80.000 tons thereof having been ordered for two large Mexican concerns, which is now coming forward. The discovery of oil in this vicinity has opened up a market for oil- drilling machinery and piping. So far all such has been imported from the United States; but it will need watching. Three years ago there was but one naptha launch in this harbor; now there are nine,' and there is a market for more. There is a fair quality of clay in this vicinity and a number of brick yards are running, not one of which has modern machinery. An agent who BricU can speak Spanish ought to be able to sell some machinery for that work Macliiiicry here. It cannot be done by catalogues; I have tried it. One should come here who can judge of necessities by seeing the existing conditions. I believe there will be a market here for felt roofing, but it must be worked up. The present roofing is galvanized iron or tiling. Situated so close to the United States, Mexico should be visited frequently by the heads of such of our manufacturing establishments as desire business relations with the merchants here, with a view to studying the needs and possibilities of this Republic. Here are 14,000,0000 people who will, in time, require as much at least as the 5,000,000 of Canada, and whose needs should be thoroughly studied and supplied. Catalogues, even in Spanish, will not suffice, especially where the catalogue price is only the basis for discounts. Every house with an export trade should have in its employ an expert on the Custom House regulations of the several foreign countries. If our shippers have to stand, in their shipments to other countries, the fines assessed against them here for careless billing and document!, ig of the shipments, it is a surprise that they do any foreign business at all While the people here will change their customs sometimes, they will not do so suddenly, but only after being led slowly from the old to the new. CiiNtom- It is necessary to start by giving them just what they want in the way they house- Fines want it, and their consent may he obtained to a change when its fitness is proven and the suggestion is made by one who has their confidence, and for a time has supplied their wants in a satisfactory way. HONDURAS. From William E. Alger, U. S. Consul at Puerto Cortes. Puerto Cortes, August 27, 1902. The United States is getting her share of trade with Honduras; 70 per cent of all importations through the Puerto Cortfe customs came from the United States in 1900; and this was increased, for the year 1901, to 83 per cent, of the total imports. Honduras at present is importing all she is able to pay for. While one of the richest countries in the world in natural resources (principally unde- veloped), she is one of the poorest in monetary wealth. Once develop her resources, and you increase her purchasing power, and at the same time her importations. If a market could be secured for her cattle, her importations would in- crease 50% in one year and loo'/o in two years; this was proved in 1899, when she exported from this port alone to Cuba some 24,000 head of steers Honduras can at present supply some 60,000 head of male cattle from four years old up, and can find no market for same. Previous to 1900 she had depended on Guatemala, selling to that Re- public annually some 40,000 head; but now, owing to the financial condition of Guatemala, she is unable to purchase. Her laws forbid silver leaving the country, and her paper currency is worth only some 13 cents United States currency on the dollar; consequently she purchases no cattle from Honduras. Once provide Honduras a market for her cattle, and you will double her purchases from the United States. It is useless to repeat the old song of longer credits, better packing, and sending of drummers able to speak the language; though they still remain a necessary means of securing trade. 13 NEW BRUNSWICK. From John B. Myers, U. S. Consul at St. John. ^_^^ ^^^^^ ^^^^^^ ^^^ ^^^_ The value of imports into 1900, was $6,580,895; for the imported and the proportion countries were as follows: Articles. the Province of New Brunswick for the year year 1901, $6,704,258. The principal articles fmported from the United States to all other Per cent. Per cent. Baking powders ... 99 Baskets . • 34 Belting . . ■ 9^ Billiard tables . . - 99 Blacking, shoe . , 9^ Blueing for laundry 98 Books .... 90 Boots and shoes . . 5° Brass mfrs. . • 9° Biscuits, plain 9° Corn, Indian . 100 Oats ... . . . 98 Wheat flour , -99 Brushes .... 4° Buttons, metal 55 Carriages .... 95 Cars, passenger . 90 Bicycles and parts . 99 Cement, water lime 100 Cement, Portland . . 80 Clocks . . 90 Coal, hard 99 Coffee . . . 95 Combs .50 Copper mfrs. . 9° Cordage, cotton . . 99 Cotton mfrs. . 95 Drugs — phosphate . 99 " acids . 99 ' ' dyes .... 90 Electric light carbon . . 95 ' ' apparatus 95 " motors. 100 Glass mfrs.^electric bulbs . 99 " bottles . . 45 " lamp chimneys . 99 Gunpowder 95 Hats, caps, and bonnets . 95 Iron and steel mfrs. . . 96 ' ' railroad rails . 40 " " fishplates 95 Iron stoves ... - 99 " switch frogs . . 100 " and steel tubing . 88 The trade of the United States is increasing with this country from year to year, and only requires to be pushed to capture the markets in the lines heretofore mentioned. The nearness of the United States, with the most ample facilities for quick transportation, and the immense quantities in our market, insure the greater bulk of the trade in the lines heretofore stated. I hear of no complaints in regard to packing or credits. Articles. Iron and steel cloth , Wire of all kinds Iron, scrap Table cutlery Guns ... Bars and steel hoops . . Axes Saws . - Files and rasps Steel tools Jewelry . Lead and mfrs. Leather, dressed . . " for gloves " upper " harness Gas and coal oil fixtures Lamps Oil, coal . . . Oil, cottonseed Paints Lead, white and red . . Paper mfrs. " cards . Papier-mach^ . Pencils, lead .... Pens and holders, etc. , Meats, bacon, ham and sh " canned . . " pork, barreled " fresh . . Salt, coarse Seeds Ship boilers and engines Soups . Sponges Starch . , Sugar candies Telegraph and telephone Tobacco, cut, and snuff Twines Watches . . Watch cases Webbing 'Iders insts. 99 80 60 55 60 80 95 95 95 96 87 96 90 95 93 99 96 91 100 99 99 50 95 gs 92 55 90 99 98 100 100 95 95 98 97 95 80 70 99 50 96 35 90 95 14 GERMANY. From 'Walter Schumann, U. S. Consul at Maiuz. Mainz, August 26, 1902. Trade Conditions in Germany.— For five years, beginning with 1895. Germany experienced a period of unequaled prosperity. Every in- dustry flourished, and capital was invested in unprecedented amounts in all kinds of industrial undertakings; old plants were enlarged and new ones erected, and everything was feverish activity. But, as is usual when good times are at hand, the production of almost every industry was unreasonably increased, and at last overproduction resulted. It was not, however, until about the middle of 1900 that the serious condition of the markets was fully realized, and it was then almost too late to retrench. The result was a gen- eral decline in industrial paper and a liquidatiou of many concerns. Never- theless, sharp and severe as the setback was, it was of comparatively siiort duration, and now, after two years, although the country has not yet recov- ered from the general business depression, it is evident that the lowest level has been reached and passed, and that the prospects for the future are brighter again. A question that causes uneasiness throughout the Empire at present is, what the Reichstag, the legislative body of the Empire, will do, on its re- assembling in December, with the proposed new import tariff bill. It is almost certain that a revision of the present import tariff will take place, and a bill to that effect has already been introduced in the last session: but whether the demands of the agrarians, as well as many industries, for a pro- tective tariff will be fully complied with is another question, which, how- ever, the next Reichstag will probably be compelled to settle. Until this measure is definitely disposed of, trade, especially foreign trade, will be unsettled. • As to the advisability of passing a protective tariff bill, opinion is greatly divided. The German Chauvinists, who recruit chiefly from among the agrarians of the country, clamor for a protective tariff, while students of the social problems see in a protective tariff, especially on the necessaries of life, an iucalculable calamity for the working class; for, only to mention a single item, Germany is absolutely unable to produce sufficient rye and wheat for her inhabitants, and no matter how high an import duty may be placed on these grains, Germany must import large quantities to cover the demand. Within the last decade or so an important, influential society, with branches in almost every little town of the Empire, has constituted itself and is known as the "AU-Deutscher Verband " (or, in Engli.sh, "Pan-German Society"). While the aim of the society — to cultivate the feeling of true patriotism — is certainly very praiseworthy, nevertheless Chauvinistic tenden- cies have latelv become predominating in said society, ard some of the "All-Deutsche" even go so far as to refuse to wear clothes made from goods not "made in Germany." It may do for a country to build a Chinese wall around itself when it can produce everything it needs, but for a country like Germany, which is de- pendent on trade with foreign countries for some of its necessities of life, a high tariff seems rather a questionable benefit and may act as a boomerang. From the foregoing it may seem that trade with Germany becomes more difficult from year to year, and only through rational, systematic, and ener- getic methods and advantageous commercial treaties may Americans hope to hold and increase their business with Germany. Trade Oepressiou Commer- cial Treaties PORTUGAL. From "W. Stuve, U. S. Consular Agent at Oporto. Oporto, August 28, 1902. The trade interests centering about this Consulate are but few, although some bulky articles are here imported on a large scale from the United States; for instance, cotton, staves, pitch pine, petroleum,' --•-—'- ■-" '^'-- wheat, maize. The 15 two latter articles were formerly imported in l^>'g^^rocity MEXICO. From Ed. B. Light, U. S. Consular Agent at Guadalajara. GUADALAJ.4RA, August 23, 1902. The Metric System of Weights and Measures, — Congress should at the earliest practical opportunity enact a law which would enforce the using of the metric sy.stem of weights and measures. Your members should take up the question of having this system of weights and measures taught in all public schools in their States, and should see that all school books printed in the future should contain this system. To put this system into effect in any country is a work of some magnitude, and it is very important that we should employ it in all commercial affairs if we wish the trade of Mexico, Central and South America In those countries they do not under- stand our system of weights and measures, nor can they readily comprehend our prices and quotations when made upon our system of weights and meas- ures. Nor will prices receive the attention those will which are made in terms with which they are familiar. We are now about the only large ex- porting country not using this system, which is far superior to the one we employ. Our T.^riff Laws. — Foreigners cannot understand why we enact laws that shut them out of our market, and then make a great effort to get into theirs. I must confess this is a difficult question for me to explain in a sat- isfactory manner. I have advocated a high protective tariff until the past few years, since when we have been making strenuous efforts to extend our export trade. I still am a protectionist. But I interpret protection to mean the building up of our industries, and we can hardly hope to build up our foreign trade under our tariff system, which is all right if we enact a system of reciprocity. We cannot hope to become the leading export nation, which we easily may, by putting up the bars of commerce' against our neighbors and at the same time expect them to open their gates to us. I believe, with that great states- man Blaine, "that we should keep our tariff to trade on, and make good use of it." Occasionally some industry may be injured a little, by letting foreign goods into our markets, but where we lose one dollar we shall gain ten, if not a hundred fold. One illustration from this district: Last year a gentleman came to my office from the orange groves of California and asked for information as to the amount of oranges shipped annually to the United States, saying he understood that this was the prin- cipal shipping point of oranges from Mexico, and wished to look up the matter, I told him the orange shipments from this district were very few, and not sufficient to be appreciable on the markets of the United States. He said: " Yes, but they amount to several hundred carloads, do they not ?" Oh no not a hundred. I then examined my books, and found that only seventy-two carloads had been shipped during the year. " Why," he s.aid, " I am aston- 16 ished for we ship more than that every day during the shipping season from Los Angeles. After discussing this matter fully, I said to him- '• Now if yon wish to promote the fruit business of your State, I will in a few words explain how it can be accomplished. From what you say, you ship in three days from California more oranges than are shipped from Mexico for the year Our oranges go into that market much earlier than the oranges from California or Florida ripen, so our shipments in no way compete with yours- therefore no injury whatever is done ourgiowers by the Mexican shipper.' Now, if you would take up the matter of reciprocity and secure the entrance of the green and dried fruits of this tropical country into our country practically free, upon Ihe condition that our green and dried fruits be ad- mitted upon a like basis into Mexico, you would secure a hundred times more benefit than injury." In this country they grow practically nothing in the truit line equal to ours, they can and dry practically nothing, and our canned and dried fruits would be in very great demand here in a short time, because of their superior quality. There is in this one industry a great trade awaiting us, and it can be had for the effort. But this is only a suggestion. In nearly every line of business there is an opportunity of an exchange of trade, which will prove greatly to our advantage. If we are to secure this advantage, we must enact the treaties now, before the industries are established, for when concessions are issued and capital invested they must be protected. If we would greatly enlarge our trade, so as to practically control the trade of this market, which will prove a very valuable one if sought and worked for, we must be active. We must throw politics to the dogs, and establish a broad commercial policy. As the immortal McKinley said, in his last great words of advice to us: "We must not expect to receive unless we give." The Better Way to Introduce American Goods. — Always to be done with samples, by salesmen that thoroughly understand their business. It will be necessary to accommodate conditions to the demands of foreign markets somewhat. Because of this, all houses having a business sufficiently large to justify the expense should send one of their best and most trusted salesmen into these markets with a full line of samples, and give him instruc- tions to secure what trade he can advantageously, but not give him defi- nite instructions how to do it. It seems impractical for us to at once cap- ture a market, and in our own exact way. A salesman must have a little liberty to conform to the wishes of the foreign buyer. They may want their goods made a little different, and are quite sure to wish them packed dif- ferently from what -yve are accustomed to packing for the trade of our home markets, where everything is transported by rail or wagon Here frequently freight nuist be transported over miles of mountain trails on a mule. But little by little this trade may be educated to our way of doing, and a valuable trade may be obtained if the salesman is a man of good judgment, and has the confidence of his employers to the extent of being able to meet at times the peculiar demands of the trade. I do not believe it is necesiiary to extend long credits, as many assume. It will be asked, but overcome, with judicious management. As a rule, the Mexican merchant is quite as good pay as his brother American. The most frequent losses are made in selling to Americans. It is too often the case that Americans establish here in business with a limited capital, without'knowing the customs, language, and demands of the trade; and these conditions force him to do a profitless business, when he has the best intentions My experience is that the standing of new American houses should be examined quite as cautiously as that of Mexican houses. I have been told by some that the only losses made in Mexico were among the Americans. This is an exaggerated statement. I regard the established houses of this country quite as reliable and safe as tho.se of our own, for expenses are small and profits more liberal than with us. The consular service may be employed more advantageously than at present. Salesmen should, upon visiting a city the first time, confer with their Consuls as to the reliable and unreliable houses. 17 In another letter I may take up the reorganization of this very useful service to our country. This letter is too long to take up the matter here. I feel sure that, in seeking information for the better reorganization ot this service, interested parties should not confine themselves to the higher officials. There are perhaps twenty-five or fifty Consular Agents to each Consul- General. Naturally they see things through different eyes. The Consular Agents come in contact daily with a larger number of Mexican merchants and miners than their immediate superior officers. The compensation ot Consular Agents is so arranged that it is to his interest to encourage ship- ping to the United States rather than to work for the importing of goods from the United States, for which he neither receives compensation nor credit. liOcal Aleuts vs. Travelers SCOTLAND. From Kufus Fleming, U. S. Consul at Edinburgh. Edinburgh, Sept. 8, 1902. This part of Scotland is a good market, not only for general merchandise, but also for machinery, machine tools, hand tools, novelties, etc. Many kinds of American manufactures are largely sold here. The extent and character of our trade have been set forth in some detail in my reports to the Bureau of Foreign Commerce, Department of State. There is no prejudice against American goods, either among the dealers or the people, and the staple wares cannot be put on the market in a better way than through the local wholesale or commission houses. The question of chief importance to our manufacturers, I take it, is the old one as to how to introduce or extend the sale of a special article or special line of articles; whether to place it wholly in the hands of local agents or to serid men here to work up trade. The difference between American and Scottish business methods is a matter of common knowledge to all our manu- facturers and exporters. It is a difference of temperament and of customs. We are in the habit of ' ' pushing trade" and are not satisfied with slow returns. If I were asked whether, in my opinion, an American is a better seller of American goods in Scotland than a Scotsman, I should answer in the affirm- ative, but with the qualification that the American salesman must have the tact to adapt himself rigidly to the business ways and social customs of the country. Enterprise counts, if wisely directed and if there is back of it a good-humored patience and a thorough respect for the ideas and methods of the commercial community in Scotland. The foreign salesman who becomes critic is a failure — he can sell nothing. I had a talk on this subject recently with an American agent of an American manufacturing concern, who has had more than a year's experience in England and Scotland, and who, I may add, has been very successful during the past six months. He said: " My company entered this field about two years ago, establishing a gen- eral agency in London, with an American in charge, and sending across a dozen salesmen, some of whom had done excellent work in our country as commercial travelers. Only three of these men were here at the end of a year. Nine had not earned their salt, and were recalled. The trouble was "liiiow .^^ith the men, not with the machine which they were introducing. None of =•"" us had been in Great Britain before and we knew little about business cus- toms on this side, and less in regard to the characteristics of the people. During the first three months, I frankly confess, I pursued a foolish course. I had adopted the wrong attitude at the start, in assuming that I knew better than the merchants and shopkeepers what were their requirements and how to conduct their businesses. Finally it dawned upon me that I was not here to change the commercial methods but to sell machines and that the only way to do business was to accept conditions as thev were and to get into har- mony with them. From that day I have been successful. All my early ideas about business men and methods in Scotland have undergone a radical change Not only the wholesale merchants, but also the shopkeepers are as a rule' Travelers who it all remarkably clear-headed men, with a perfect knowledge of their own affairs Travelers and interests, always ready to spend money in order to make money, and who each relying absolutely upon his own judgment as to the merits of any article Make .Sales brought to his attention." Within the limitations which I have indicated, the enterprise of Amer- ican commercial travelers or agents and of those of the Continent, notably Germans and Russians, is effective. I need not go into details as to what methods are specially useful. They are the methods common in our country. For example, the American agent of a computing-scale company began busi- ness in a Scotch city by going to all the principal grocers and butchers, making a purchase at each shop, taking a memorandum in each instance of the weight and cost. Afterward, when he invited them to come to his place of business and see the computing-scale, the agent was able show each exactly what he had lost in that small transaction. All legitimate plans of selling machines or goods can be as effectively applied here as in America or elsewhere by one who fully understands the national or racial temperament. American manufacturers are aware of the sullen hostility of British work- l.,abor- men to labor-saving machinery. Some of our makers of machinery have had ssivlii"- experience of this antagonism in British shops to any new devices for increas- juacliinery ing the output without increasing the labor cost, and they have learned to expect that their machines sold in England or Scotland must at first undergo a severe test at the hands of unfriendly operators. I have in mind the case of a Scotch sawmiller who purchased in America an improved device for one branch of his business, and which was guaranteed to do a third more work than the apparatus he had been long using, without any additional labor cost. For some weeks after the machine was installed there was no greater output. He questioned his workmen and watched them, but could discover no delin- quenc}' on their part. Confident, however, that they were not giving the machine a fair trial — he had seen it operate in America and knew what it would do under favorable conditions — he resolved to get at the difficulty, and, giving the men a holiday one Saturday, he went to the mill with his superintendent, and they operated the machine with far better results than had been obtained by the workmen; in a word, it did exactly what the makers had said it would do. On Monday morning the sawmiller told his men that if they wished to continue in his employ, they must turn out a certaim amount of work per hour with the new machine. He had no reason thereafter to find fault with either the machine or the men. This incident is one of many that might be related, showing that our manufacturers of labor-saving appa- ratus must always have in view, when selling to new customers on this side, the probability that their machines will not receive friendly or fair treatment from workmen at the start. On the general subject of the development of our trade here, I venture to present a few observations, which are intended as suggestions: 1. Scotsmen have a decided preference for British-made goods if equal in quality and not markedly higher in prices than foreign competing articles. To sell foreign competing goods in Scotland it is necessary, as a rule, to offer a superior grade at the prevailing prices or standard goods at prices below the quotations for the home articles. American goods are preferred to any other foreign products. ^ 2. In the case of a novelty or a non-competing article, or of a competing article greatly superior, price is a secondary consideration with the average Scotsman. If he wants it he will buy it, provided the price is within reason. « 3. In offering machinery of any kind here it is a mistake to make extrav- agant claims as to what it vvill do. A moderate statement of its advantages is far more likely to lead to a sale. 4. Merchants and manufacturers wish to deal with a duly commissioned and responsible representative of the fiim or company seeking to do business with them — an agent authorized to make a definite and binding contract. 5. In almost all lines of trade c.i.f. quotations are required. C.I.F. 6. In every pound of promise a Scotsman expects to find .sixteen ounces ^notations of performance. 19 From F. E. Kneeland, a ] Primitive 9IeaiiN of Traiisi»oi*t Hii;h Freight Cost Revolu- tions Smother Trade COLOMBIA. . Boston gentleman temporarily residing at Bogota. Bogota, Feb. lo, 1902. There are many causes which tend to hamper and restrict Colombian trade at present, and as the facilities for handlinR merchandise and transpor- tation of freight and passengers are, to an American, of the slowest and most tedious description, even under the most favorable circumstances, business in the ordinary sense of the word may now be said to be well-nigh impos- sible. Take exports, for instance: among the principal exports of Colombia are coffee, rubber, hides, cattle, and some cacao, not to mention gold and other precious metals and stones. Ordinarily, with the exception of the practically insignificant territory served by the country's ten railroads, which average less than twenty-five miles each in length, these products are con- veyed to the banks of the Magdalena River and thence transported by river steamer or native champans to the port of exportation— sometimes Santa Marta or Cartagena, but more often Barranquilla The method of convey- ance to the river is by "packing" on the backs of horses, bullocks, burros, and mules— preferablv the last. In some sections the load carried by one animal is but eight arrobas (200 lbs.), while in others a cargo comprises ten arrobas, or two hundred and fifty pounds avoirdupois. As five or six leagues is considered a good day's journey for a cargo beast, the process, from an American standpoint, is tiresome in the extreme, even when there are animals in abundance; but at present the military necessities occasioned by the war have been such that animals for the purposes of ordinary business can be procured only with the utmost difficulty and at prices which in many instances are prohibitive, to say nothing of the constant danger of expropri- ation either by guerrillas or the Government itself. Of late, from eight to twelve hundred pesos have frequently been paid for one cargo beast for the three days' trip from Honda to Bogota (Facatativa), and although this amounts to only |i6 to $24 gold, when it is remembered that a cargo is only two and a half hundredweight, and that freight charges must have already been paid, not only from the country of origin, but also over the eighteen miles of railroad from Savanilla to Barranquilla, thence by steamer to Ta Dorada and over the twenty-six miles of railroad from there to Honda, it will be seen that few classes of goods will permit of such expenditure in transportation unless sold to the consumer at a price which precludes their use except by a very limited portion of the population to whom price is not a matter of consideration, while as applied to exports it makes them prac- tically impossible — there are too manj' other lands producing the same classes of goods where the above-mentioned difficulties do not exist. Out- side of this are the present uncertainties of navigation on the Magdalena, even below Honda, while traffic on the upper river and by mule trains to the south of Tolima has been practically suspended. Importations into South- ern Tolima have almost entirely ceased, and the status of exports may be best given by the statement that T know a man in that section, whose facili- ties for shipping are far superior to the average, who has two years' coffee erops stored on his plantation, constantly deteriorating in value which he not only cannot ship at present, but as to the time when he will be able to do so he has not the remotest idea. No mails have gone intO' that section for two years, but remain piled up in Honda. Very much the same state of affairs exists in the Llanos district east and south of Bogota, and in various sections of the Department of Cauca; though while the effects of the war are felt everywhere, in the other departments they are probably less pronounced. The restriction of exports resulting from the above-described conditions, taken in connection with the enormous freight charges, have naturally caused a great diminution in the credits of Colombian merchants abroad', against which they have been accustomed to draw bills in payment for their imports. When, in addition, the tremendous rate of exchange and almost utter worthlessness of the pres^ent Colombian currency are taken into consideration, It will be perceived that the country's purchasing power is at an exceedingly low ebb. For instance, the exchange rate is now fluctuating around the 5000 per cent, mark— 50 Colombian paper dollars for one gold dollar; and as contracts specifying any other standard as a consideration are illegal if made in Colombia, and as prices of labor and other commodities disposed of within the country's limits have not risen in anything like the same propor- tion as the rate of exchange, not only has the ability of the great mass of the inhabitants to purchase imported articles almost entirely disappeared, but as the decrease in exports makes it necessary for hi:n to settle much of his foreign indebtedness by going into the maket and buying gold drafts at the approximate ratio of 50 to i, the financial ability of the merchant him- self to purchase foreign goods has greatly decreased, even were there the usual demand for them, which there is not'i and cannot possibly be for some time to come. Nevertheless, Colombia is wonderfully rich in natural resources, and if the future is to be judged by the past, when the present turmoil of internal strife is ended, the recovery to ordinary, or at least to greatly improved, con- ditions will be rapid. Stocks of merchandise must have been greatly depleted during the past two years, and with the return of settled conditions the requirements .should be large in consequence. As an American who is a thorough believer in the present policy of expansion, I should like to see this trade, when resumed, diverted from past channels to American markets, and would like to do my share to that end. There is no doubt but that at present, as in the past, the great majority of Colombian trade, with the possible exception of rubber, is in the hands of Europeans. German, French, and English houses maintain permanent representatives in this city, and in addition there are many local firms owned by men of those nationallies who, very naturally, secure and ship their goods from and to their home markets, except where they may be procured or sold at considerably better advantage elsewhere. Under the impetus wliich has lately been given to our foreign trade, and with the closer connection with South American countries proposed to be attained by the establishment of new steamship lines, not to mention the efforts of your own and other institutions, as well as those of individual firms and corporations, to the same end, it would seem that American trade prestige in these countries is in a better way to be accomplished than ever before In their endeavors to attain this object, however, there are two conditions which must be met outside of the usual efforts in the way of soliciting and retaining customers, viz, : credits of from three to six and sometimes nine months must be given, and greater rare must be given to packing and markini; goods than is necessary to be observed for all domestic markets. Fur instance, a Bogota firm orders goods from New York: in time of peace, if the order is filled promptly, the firm may expect to receive the shipment in three months; but if, on opening the cases, he finds that some or all of their contents are damaged owing to lack of proper care in packing, and that three months more must elapse before they can make good the discrepancy — well, he is likely to say things not permitted in the mails, and it is ten to one that the second order does not go to New York, Same way about marks. If, owing to error or lack of clearness and completeness in marking, a shipment goes astray on the river or elsewhere, it is not a subject for a tracer, wire or otherwise, as at home, but the shipment is either lost completely or, if found, it may be several months or a year afterward, when its recovery in the way of surplus stock and increased obligations often causes embarrassment second only to that caused by its previously going astray. As for long credits, they must be given in order to secure this trade in competition with European houses, who, unfortunately, have given the South American a very bad education in this direction. However, the condition exists and must be met, prices being fixed at such a figure as is consistent therewith. Needless to say that they must needs be figured pretty close, time and additional risk being con- rtepreci- Curreiic.v Rich KesonreeN Foreiffii Houses Credits and Packing' JVlarkiiig' Iiiipor- tation not Spec i all zocl Dearth of Local Industries Culflivatecl Tastes Pnrchasinf;- Power sidered even then. With respect to credits, there is one point which it seen.s to me should be given particular attention before tnaking shipments to Colombia for the present or in the near future, until the finances of the country are again on a settled basis, and that is careful investlga ion of a firm's financial ability before extending any considerable credit (unless secured bv a proper guarantee), as owing to the severe tax upon them during the past two years the resources of many houses must have been strained well-nigh to the breaking-point. ,.,,-,„ , There is one comment which I wish to make in relation to all, or nearly all Colombian importers, and that is, that they seldom confine themselves to any one line of goods. For instance, although Alexander Koppel & Co. make a specialty of dry goods, one may any day find displayed in their store placards calling attention to a certain brand of tea and various other articl as of a nature wholly foreign to their principal line. In the same way, on my arrival, it struck me as somewhat curious to see a big placard advertising "Superior Rum" resting easily among women's costumes and similar articles in the window of Jouve & Co.; Mes.srs. Manassevitz & Frankel call their place of business the "American Jewelry Store," yet they are partners of a distiller on the lower Magdalena. and though they carry an excellent assort- ment and are doubtless the leading jewelers of Bogota, they at the same time take ord..'rs over their counters for a more or less excellent quality of rum. In fact, Bogota firms are often miniature editions of the department store at home — anything is fish to their net; and although in specialties there are certainly preferences, still in general terms it may be said that no mistake will be made in writing to any importer with a view to introducing any line of goods, always providing that there is a demand for them and that they afford an opportunity to make money. In this connection, a few remarks regarding the demands of this market may not be deemed amiss. Bogota itself may be said to require everything for which there is a sale in any cosmopolitan city, with the exception of furs, skates, and other articles incidental to a cold climate. At present there is, unfortunately, very little demand for plumbers' goods and other sanitary articles, but it is to be hoped that such demand is on the increase. Among articles of impor- tatirn are all articles of clothing for both men and women, although the mantilla of the ladies is responsible for a minimum use of millinery, jewels, dry goods, and fancy articles of all sorts — in fact, manufactured goods of every description, with the exception of chocolate, cigars, and a few other natural products of the country, for which manufactories have been estab- lished to turn out the finished article. Colombia is not yet a manufacturing country, nor will it be for many, many years to come, unless a different rate of progress is instituted from that which has prevailed for the last four hundred years. Nevertheless, her wealthier class have traveled widely and demand for their daily routine in Bogota all the requisites which they have acquired the habit of using in Paris or New York. They are particularly fond oi personal adornment and jewels, and "creations" in the way of gowns for the ladies, and silken tiles, patent leathers, etc. — for the men find a much greater market than one would expect from a city which is reputed to liave I20.000 inhabitants, but in which it would probably be extremely difficult to enumerate two-thirds of that number. Bogota has' a considerable territory which may be said to be tributary to it, but unfortunately, for its future growth, it must be admitted that its possibilities in that direction are greatly restricted. As for the requirements for the great mass of the people for imported goods, they may be described as nil at this writing. The requirements are there well enough, but for one who earns from 50 cents to f ^ a day in Colombian currency, to even dream of purchasing goods imported from abroad would partake of the nature of a "pipe dream." Nevertheless, times nnist improve, and, although a majority of the population are now iA rags, the day must come when they will be again able to purchase clothing and other necessities. " This letter is already too long, but, with reference to the fact that most goods are imported from Europe, rather than the States, I wish to remark that since my arrival I have been the means of a friend ordering some shoes from a well-known American firm by post They arrived a short time since, and although the price was much less than what he had been paying for those brought from Europe (England and France), not only he, but many of his European friends resident here, were greatly pleased with them. Same with hats; I have heard Americans particularly remark that they would like to buy American-made goods, but they are not to be had; and yet I am certain that, in many lines at least, we can surely furnish better goods at the same or even at a lower price. VENEZUELA.. From Louis Goldsohmidt, U. S. Consul at I,a Guaira. La Guaira, Sept. 3, 1902. In order to be frank, it is absolutely necessary to accuse our merchants and manufacturers of shortsightedness and even criminal negligence in abstaining from developing a trade which undoubtedly, in the long end, is the more profitable and the more satisfactory. Foreign trade is more satisfactory, because every yard of textiles, every pound of iron, every single tool — in fact, every single item of general mer- chandise sold abroad " makes a hole " in the stock on hand, and in no way interferes with our market at home. Instead of helping to glut our stocks and lessening the demand, or lowering the price of that article, it causes labor to be employed in the manufacture of such products, and creates a demand which at first may be only slight, but which, in the end, will repay well for the efforts made, and even for losses caused by the primary intro- duction of such merchandise abroad. I will repeat that we are shortsighted in neglecting foreign trade, because our people are over-satisfied with our home market; and although commerce in our country is incomparably more prosperous than elsewhere, the day must come when diminution sets in, and when our manufacturers are unpro- vided with a market in which they may unload their surplus products and thus avoid, in a measure, (l) shortening of production, and (2) discharging of employes and pecuniary losses by a general commercial crisis. We are " hugging ourselves " with the idea that we are supreme, com- mercially, but anyone who visits the markets abroad can see at a glance that there is an error somewhere. Visit the stores, and you will notice that although certain American merchandises are to be found you will imme- diately perceive that they are greatly outnumbered by those of England, Germany, or France. Excepting possibly in the line of provisions, or certain classes of hard- ware, or ordinary cotton textiles, the United States cuts absolutely no figure in the trade of South America. Why is this so? I will now rethrash old straw. In the four and a half years' resi- dence in Venezuela, I have been a close observer of traffic. I have noticed that the American traveling .salesman is as rare here as the proverbial " white blackbird." Not over twenty-five — yes, I might say less — have come to Venezuela in tHat time, in order to introduce American goods or to get acquainted with the trade or its methods. Letters pile in on Consuls from all sorts of people and in all branches of trade, demanding of him information which, from the variety of subjects touched, it would only be possible for specialists in those branches to reply intelligently. Catalogues are sent to your Consulates, generally in English, rarely in Spanish, and hardlv ever quoting the prices of the wares advertised, and with the usual stereotyped formula — "f.o.b. New York, payable in advance, etc." That is no method of obtaining foreign trade. Foreign Trade Steadies Home Markets Terms of Payment 23 You can never obtain the good graces of an individual by showing him right at the start that you mistrust him. There are just as honorable, just as reliable, and just as rich concerns with whom trade can be established abroad as there are at home, and they are just as sensitive of their good name and jealous of their credit as our merchants at home. . . Repeating we are shortsighted, I will state that our manufacturers neglect the foreign market in that they pay no attention to the demands of that market. This subject (with the manufacturer) is generally left to some broker or commission merchant, who, as long as he disposes of the product somewhere and obtains his commission, cares verv little whether he establishes a market for you or not. All he cares for (and you cannot blame him) is to "turn over," or sell the goods as quickly and as well as possible. Therefore, why not adopt a personal resolution to pay a little more attention on their own part to such a trade ? Why not put aside, at the beginning of the year, a certain artiount of money, to be expended exclusively in working up foreign trade in some direction ? By establishing a small branch in your business, entirely devoted to for- ign trade, by giving this branch into the charge of some intelligent, active, A<» "'-" ^"'^ pushing man who is interested personally in the matter, you will obtain the desired result. By not trying to do too much at once, but by directing your energy to one point of the foreign market — yes, first to one country, or to a subdivision of that country — and by working with that end in view, and only in that way, will a trade be built up by Americans abroad, in competition, and suc- cessful competition, to the hard-working Europeans. The Europeans are awake to the fact that this trade is worth catering for; in fact, necessity early obliged them to seek a market for the surplus products of their shops, their mills, and their mines. Their commercial existence depends on the foreign market, and they will spare no efforts to hold that which, after years of bard work, they have obtained. All sorts of methods are employed by them in keeping this trade and in enlarging it yearly There is not a secluded corner of South or Central America where you do not meet the European business man. These business men generally reach here as young clerks, and begin their employment in some commercial house, who has European connections or who even may be but a branch of some European concern. All their interests are in assisting in developing this European trade, whether from commercial, pecuniary, or patriotic motives. The Europeans are wide awake to the fact that this trade is valuable, and assistance is given by the Governments of those respective countries in developing the same. They realize that foreign commerce is a source of wealth to them and everything is done by the Governments in the assistance given to help devel- oping the same. ^ Countries which formerly employed themselves exclusively with the development of their fighting-strength are now looking after their merchant marine, and after their individual traders located in eVery corner of the earth. Mars has given place to Mercury, and I fear (?) that he will never again reach first place. There is no standstill in commerce: you must either advance or re- treat. Attention must be paid to it, and it is not only a question of manu- facturing successfully but of selhng what vou have manufactured You may make cheaper or better than your competitor of Europe, but if you lack the enterprise or the knowledge to introduce the manufactured article to the foreigner, or to show him its superiority, you can never comnete with the Europeans in selling abroad. Therefore, "my advice is the foHowingT 24 1. Pay detailed attention to foreign trade. 2. Send representatives abroad to introduce your goods; send men who know the language of the country they are going to, or at least some other language besides English. Let these men be pecuniarily interested in work- ing up this trade, in getting personally acquainted with the customers; let them be good salesmen, but, above all, gentlemen, who will command the respect and confidence of those with whom they intend to do business. Let them visit their Consuls when they arrive in a country; confer with him, and he will probably be able to guide them to some business, or to some one who may assist them in the same. Let them take samples with them (if con- venient to carry same), also catalogues with prices attached — clear, stating the net price is better than obliging customers to deduct discounts, etc. Try it persistently for a few years, and then observe the result. Don't be afraid to spend a. little money, even if you have to curtail in some other direction. 3. If you succeed in obtaining returns for your work and expenses, pay particular attention in scrupulously executing to the letter all foreign orders, bearing alwaj'S in mind that what may only be a slight matter in not coming up to the required thing, may be of vast importance to him to whom you are shipping. Pay attention to careful packing, as thereon largely depends the question of cost in some countries. If you are told to pack lightly, it is prob- ably because duties on imports into the country you are shipping are probably on the gross weight, and you may by your carelessness add con- siderably to the first cost of the goods. Pack your goods firmly and with intelligence, but, above all, pack it as requested by the buyer, as he un- doubtedly has his reasons for specifying. He may tell you to pack certain parts of an article separate, and this again may be to avoid trouble with the custom house, in classifying and assessing the goods as required, or owing to the question of transportation to the interior. 4. Let your representative, when abroad, look carefully into the finan- cial standing of the parties with whom he intends to do business, and, having satisfied himself that those parties are reliable, let him bend every effort in trying to sell your goods to those parties, and in making it an object for those parties to open commercial relations with you. Do not strain the point (if requested) to lengthen your credit a little, if the concern which demands it is known to be honorable. All these things are done by your competitors, to whom it is often a greater hardship than it would be to you. 5. Look after the representatives selected from your respective Congres- sional districts and your Senators, and impress upon them the necessity for favorable legislation for foreign trade. See that these representatives under- stand the importance which you give to the possibilities of this trade. Impress upon them that it is a niggardly policy to refuse certain financial legislation enabling our Government to develop the proper kind of service in its consular branch. All of these things are, in my humble opinion, of vast importance, and, I believe, if carried out, will in a great measure tend to increase our trade with the world. How, to Secure Foreign Trade PRANCE. From Ottilio Piatti, U. S. Consul at Nice. Nice, Sept. 2, 1902. After a careful investigation of the prices and conditions touching the very few articles of American manufacture existing on this market for five or six years this Consulate came to the conclusion that the first element indispen- sable to 'the creation and development of our export trade was that, where- ever practicable, and especially in the cases of ports having more or less direct communication by sea, such trade should be done direct. We were enabled to ascertain that certain articles sold here came from a general depot or agency in London, were forwarded to a sub-agency in Pans, then 25 Ship I>irect Pro forma Invoices sold by traveling salesmen, sent down by rail, with the result that they were offered at retail here at from two and a half to four times the price in the United States. It became evident at once that, as in very many cases not only must competition exist against the products of the country and of neighboring ones, but that a trade must be created, goods coming to this market under such conditions might very fairly said to be completely handicapped. The result obtained, after some years of persevering work by us here, goes to prove how absolutely correct were our impressions. A perusal of the Special and Annual Reports will show that we have succeeded, for the first time in the history of this port, in creating a direct export from the United States, and goods have arrived direct from the manufacturer to the docks at Nice. If, in the future, this movement is to increase (and we have every reason for asserting that it has come to stay), it will only be because the very considerable saving afforded by this direct exportation will have enabled Avoid the firms here to find a margin for profit and competition. This margin Xeedless would not exist were such goods to come through second and third hands. Coinmis- In other words, such goods would not be sold here at all, under any other sioiis conditions. I think that I have sufficiently demonstrated the absolute necessity of direct trade. I would now beg to add a few words in reply to the suggestions made in your letter. Not only should catalogues intended for the foreign trade be printed in a foreign language, but full details touching the goods should be given. Our merchants and manufacturers are in a position for ascertaining freights at any time to any given point. It has been already suggested by this Consulate that a few pages of catalogues could be very advantageously devoted to " pro forma " invoices representing an imaginary shipment to the several ports of the country to which catalogues are sent. Importing firms could then see at a glance the cost of the goods c.i.f. laid down at the dock. Much time and trouble would be saved thereby, and in many cases loss of time means the triumphal entry of a competitor in the field. Where catalogues in English are sent, care should be taken that they be as clear and distinct as possible, and the excessive use of strictly local or technical terms should be avoided. In very many parts of the world, many of our goods represent not only novelties, but veritable evolutionary produc- tions in the world of manufacture, and the special merits of such articles should be conveyed in striking and concise terms within the comprehension of people who are only superficially conversant with the enormous strides our manufactures have made. Ilnremlt- To conclude, and in further reply to your letter, I will say that aside ting f^°™ ^^^ suggestions above sketched, it is my opinion that our manufacturers Effort ^"Q merchants, recognizing the immense importance of the establishment of an export outlet, should wherever possible cultivate foreign markets with the same assiduity that they display at home, where, very often they meet with competition much more active than they would find in many foreign markets. GERMANY. From Ernest L. Harris, D. S. Consular Agent at Eibenstock. ElBBN.STOCK, Sept. lo, 1902. • '^^ my knowledge there are no firms in this consular district which import goods direct from the United States. This district is made up of him "tZ t^?^^ }°^T ^"'^/^^'i'^ ^"^e "o wholesale houses in any of them. The retail dealers draw all their supplies from large wholesale houses m Leipzig, Dresden, Chemnitz, Berlin, and Hamburg wnoiesaie nouses Many American articles and products find their way into this district American -shoes cigars, tobacco, bicycles, typewriters, fruits meats etc are greatly in demand. In add tion to these therp 1= W, ^ meats, etc., market for American barber and dental" chair's! lawn t n'n" out'kt? kXks' sanitary equipments, and confectionery of all kinds. o"™^s, KoaaKS, 26 Chambers of Commerce in Foreign Countries.— I should like to call the attention of the Advisory Board to a subject which has thus far received but little attention from our Chambers of Commerce and other commercial organizations. Many foreign countries have established well-organized Chambers of Commerce in various parts of the world, which are exerting a powerful influence upon the search for export markets. In 1872, Great Britain estab- lished a Chamber of Commerce in Paris. This is one of the best organized Chambers in existence, and has served as a model for many others. The most important English firms located in Paris and throughout France are included in its membership. It has rendered important service in establishig satisfactory commercial treaties between France and England, and is in touch with the English importer in Paris and the French custom house. The mer- chant in London receives from it all kinds of information in regard to the French market and the French consumer. It enjoys a very high standing in both countries, and the Governments look upon it with respect and favor, which can be attributed only to its excellent arrangements. The organiza- tion has no official or political character whatever. In addition to the Chamber of Commerce in Paris, England has more than thirty Chambers of Commerce or Boards of Trade in her own colonies in every part of the world, all of which belong to, or are members of, the United Chambers of Commerce of the Empire. France has more than thirty Chambers of Commerce in foreign countries, all of which may be said to have been founded by home Chambers. The yearly subvention budget of the French Government to-day includes fig, 300 for the purpose of helping these useful organizations in every part of the world. The French Chambers of Commerce are placed on an equality with the home Chambers, with which they maintain regular interpourse. Thev give information concerning the credit standing of business houses, appoint, when requested, reliable agents, search out new markets, and collect samples of every description for manufacturers at home. The French Consuls-Geueral or Consuls act as honorary presidents where the same is practicable. The Italian Government has always looked favorably upon the founding of Chambers of Commerce in foreign countries. In 1894 the annual subsidy for this purpose amounted to 131,845. Of this sum $3,128 went to the support of the Chamber in Paris, and $2,702 to the one in Ivondon. The German Chamber of Commerce in Brussels has accomplished much for the commercial interests of the Empire. In 1895, one year after its foundation, this Chamber made its influence felt during the introduction and passage of the Belgian tariff law of that year. In addition to the general duties of such an organization, it takes an active interest in the complaints of German merchents located in Belgium, and advocates their interests before the proper authorities. The first Chamber of Commerce founded by one country within the limits of another was in 1870, when Austria established such an institution at Constantinople. At first this Chamber of Commerce served the interests of Austria-Hungary politically as well as commercially; to-day, however, it has no claims to a political organization. The home Government has always taken an interest in its welfare, and a yearly subsidy is voted by the Reichsrath. The success of the Chamber at Constantinople soon led to the establishment of others. In order to hold their own against the competition of England, France, and Germany in the Orient, the merchants of Triest started a movement which led to the establishment of an Austrian Chamber of Commerce at Alexandria. This institution gave the merchants of Triest not only a vantage-point in Egypt, but an observation station as well on the main highway to the Far East. A Government subsidy was soon obtained, and other Chambers of Commerce were established in Paris and London. The American Chamber of Commerce in Paris was founded in 1896, by American merchants resident in that city. In 1900 it had 201 paid-up mem- berships, of which 14s were American, 56 foreign. Its finances are well 27 American CtiHmbers of Commerce organized, and a fund has been established which, in time, will be devoted to the construction of a permanent home for the institution. The Chamber has for its object the examination of questions concerning the commercial and industrial relations between the United States and France; to protect the mercantile interests subsisting between individuals and firms in the two aforesaid countries; and to take all measures which may facilitate and protect the transactions of business between them. The Anglo-American Chamber of Commerce in Brussels was established in 1898, by English and American business men located in that city and in Antwerp, for the purpose of promoting measures calculated to benefit, protect, and forward the mercantile and trading interests of its members in Belgium; to represent and express their sentiments on commercial affairs; to collect statistics bearing upon the trade and manufactures of Great Britain and the United States of America; to establish a commercial library and a museum of samples in Brussels; to attain such other objects of general commercial advantage as the exertions of individuals may be less able to accomplish; to do all such other things as are incidental or conducive to the attainment of the above objects, or any of them. It is a flourishing institution with over 200 members. The chief difficulty which stands in the way of forming such bodies in many foreign cities, as far as the United States is concerned, is the limited number of American residents. There is, however, always a sufficient num- ber of American business men located in the larger trade centers to form a nucleus from which such an institution could be well officered and managed. In such cases, the funds for maintenance must come from American mer- chants, manufacturers, and commercial organizations in the United States. A small fee each year from those of our Chambers of Commerce and Boards of Trade which are located in industrial centers which are directly interested in fostering our export trade, would go a long distance towards laying the foundations of six or eight American Chambers of Commerce abroad. There are many thousands of manufacturers in the United States who would be glad to work up a foreign trade, if they only knew how to take the initiatory steps. Such manufacturers have no experience in foreign trade, and a majority of them cannot afford the outlay necessarj' for a single firm in order to open personal connections with business houses abroad. Any- thing short of personal efforts properly organized are of no avail. Sending out circulars, corresponding with foreign agents who are unknown and mis- trusted, and writing to Consuls, is time and money thrown away, which has frequently been stated, not only by Consuls, but by others who are familiar with the conditions of foreign trade. The benefits of these Chambers of Commerce will in the first instance fall to our home industries, exporters, etc. For this reason it is necessary that American manufacturers should interest themselves directly in their support. Whoever calls an American Chamber of Commerce into life in any foreign country and takes an active part in the management of the same, is laboring directly for the best commercial and industrial in- terests of our home producers. Such an institution can give the best hints about working up an export trade. It will point out what competitors are doing in every branch of industry and show the cheapest and best methods of shipping goods abroad. It will give information on a thousand and one subjects which are so important in international commerce It can further give information regarding the credit standing of firms look up proper agents, and assist, when necessary, in collecting outstanding debts Considering the work which such an institution may do for American com- merce, it IS not reasonable to expect that Americans abroad should bear the whole burden of expense necessary in keeping up such a Chamber of Com- merce. Our exporters. Chambers of Commerce, Boards of Trade, and large corporations should be willing to contribute a small fee annually for support. The best argumerit in favor of founding American Chambers of Commerce in foreign countries is the success which is attending the efforts of those already in existence. The importance of this subject in general is such that 28 I would recommend it to the careful consideration of our Chambers of Com- merce, manufacturers, and merchants who are interested in the export of American products to every part of the world. These useful institutions, established in emporiums of trade such as London, Berlin, Moscow Yoko- hania, Shanghai, Sydney, Cape Town, and Buenos Aires, would be strategic points of immense advantage in furthering the expansion of American com- merce. VENEZUELA. From E. H. Plumaoher, U. S. Consul at Maracaibo. Maracaibo, Sept. lo, 1892. It is not a pleasant task which you give me, but I will try to lay before you my honest opinion, free from all personal feelings, after a continuous observation during my long service, since 1878, in Venezuela; and what I state does not only imply the Occident of Venezuela, but the entire Republic. You ask: What are the principal causes which now operate to prevent further development of trade between your district and the United States? My answer will serve to the Boards of Trade of the United States as well as to those of Great Britain, France, Italy, and Germany. It is the unsettled political condition of Venezuela. When I came here in 1878, my first experience was the revolution of General Rafael Parra, and, with the exception of the reign of President Guz- man Blanco, we have had, as is well known, a good many, and the worst and most pernicious is now in full bloom — " Matos against Castro." This is the worst revolution which Venezuela ever had, and its conse- quence is the most ruinous upon foreign trade. We Americans suffer, but we should keep in mind that our trade is yet in its infancy; as yet only a few million dollars are involved in enterprises. But look upon other nations — for instance, Germany; there it has become a terrible calamity. We have here in this consular district, which embraces the States of Lulia, Coro, Tachira, Trujillo, and M^rida, German houses who have invested mil- lions of dollars since the last thirty to forty years, who have branch houses controlling millions of dollars in the interior of the Republic; and to-day, they as well as we, with our small interests yet, have not only come to a stand- still, but are involved in terrible losses. It is astonishing to see with what patience and tenacity they hold out; they stand on solid, strong foundation, and I hope they will weather the storm: but it will take them twenty years of peace and prosperity to recuper- ate the terrible losses sustained. As it is with them, so it is with our entire foreign commerce and so it is with us. As long as these political upheavals exist and appear every few years, there is no hope for improvement. Look upon the history of Venezuela. A young Republic only a little over seventy yerrs old, and already one hundred and four revolutions! Such terrible experiences as the country is undergoing now must lead to the abso- lute ruin of foreign and native commerce, especially in times as we have since a few years, with the low prices for our main product, coffee. Everything has come to a sudden stop; our commerce is at the verge of ruin; our steamers, formerly plying in the lake to the rivers of the interior, are laid up; most of our navigation has stopped for lack of traffic and fear to be taken away forcibly. The coffee in the interior cannot be gathered, as there are no laborers available, thousands of men being under arms; the mules and donkeys which should bring the crops to the shipping places in the inte- rior have been commandeered or are hidden for fear to be forcibly taken. Revolutions cost not only the lives and happiness of families, but also force a Government to level higher taxes upon the people and upon the importation of foreign articles. We have had all these experiences before, but never to such an extent as now. We in Maracaibo suffer more than a .y other part of the Republic, as we are the key to the Orient of the adjoining Republic of Colombia. ReTolii- tions 104 in 73 Tears 29 Trade Stifled Reckless Adven- turers Most everything which went to the rich State of Santander (Colombia) and Cucuta had to go by way of Maracaibo to the interior; most foreign houses, as well as natives, had their branch houses in Colombia— to-day all has come to a step. Unfriendly feelings exist between Colombia and Venezuela; traffic 13 stopped by Government orders; the foreign mail bags for those parts have been lying here since last year and are not permitted to be delivered. If the traffic with Cucuta were permitted, we could bring about one million bags of coffee to the market. There is a foreign house which has, in one place in the interior, about 80,000 cargas of coffee lying, but cannot bring them to market. With such conditions all commercial calculations are overturned, and the most honest and scrupulous merchant cannot live up to his promises when such large sums are lying fast for indifferent times, not speaking of the great risk that such large amounts of coffee may be appropriated by some leader of a faction. I have laid before you the true condition of our situation. Our commerce lies paralj'zed; our real estate has no value; money is scarce — at 2 or 3 per cent, a month it may be available upon property under the retroventa system; industry has come to naught; no work for the people; discontent and suffering wherever we may look. I am the dean of the Consular Corps, and I am sure that every one of our foreign representatives in this consular district would affirm the truth of my statement. You ask me: What measures would tend, in your opinion, to remove such disabilities and encourage trade? To answer this question to the point is rather a ticklish affair for a Gov- ernment official, as it involves politics. I will answer as diplomatically as possible without going into details. In my opinion, I think that the United States Government should pay much attention to the political condition of certain South American Repub- lics, and use its moral influence in favor of the government de jure and discourage all revolutionary movements. Our moral influence would strengthen such an administration, and according to the Monroe doctrine we certainly have a right to see to the management of our smaller sister Republics, if thev hope to have the benefit and privileges of civilized nations. This would only be in the interest of our commercial relations and of humanity. These continual revolutions and political upheavals must be stopped for ever; certain revolutionary spirits who start these disturbances only to satisfy their lust of power and gain should be curbed, and the legal Govern- ment, if worthy of the respect and friendship of the United States, strongly sustained. I think it is our moral duty to see to the right in certain of these South American Republics. The evil does not lie with the mass of the people of Venezuela They are a good, moral, and law-abiding race; there is surely less vice and crime here than in any other countries which boast to march at the head of civiliza- tion. The people are religious, industrious, peaceful and honest if they only could be left alone by a certain class of Pretorians, who, to satisfy their ambitions, are reckles- enough to ruin their own beautiful country We sh )uld have peace here at all means— same as if it were by interven- tion of stronger nations; but peace we must have, and the mass of the people desires it, and, once that we have peace, prosperity will follow and commerce will be able to spread m all parts of this wonderfully rich country which lies so close to our own commercial sphere ' Your next question is: What are the principal sources of strength or weakness in the present trade relations ? <; igm ui Under the existing circumstances there are no sources of strenath We have hardly begun to develop our trade with Venezuela ''^^^"o'"- we If we had peace, there would be no limit to the expanse of our trade provided we follow m the footsteps of the German houses, who hold today 30 the lion's share of trade by their wonderful system of spreading a network of colaborers all over the country— colaborers who at home have received a mercantile education and training before they are sent to this country as young men, and work themselves up during a long term of years to the Peace most responsible positions — young men, well versed in foreign languages, especially Spanish, who acquire the customs and habits of the country and learn the wants and confidence of the people to foster their commercial interest. If we follow these examples, there is no reason why we should not become prominent, especially with the great advantages we have above other nations. The commercial weakness here lies in the utter non-existence of good roads to bring our products to market; in the scarcity of capital, and in the enormous taxation of the imported goods from abroad; but this last point has mostly its reasons in the extraordinary demands upon the administration to crush revolutions. If there were a stability of government in Venezuela, all these drawbacks could easily be removed. You further ask: What new enterprises are in prospect in which Amer- ican proposals or cooperation might be admitted ? This I shall only answer as far as it concerns my consular district. Under the most liberal laws of Venezuela it would be easy to acquire large Graziug tracts of the finest grazing lands, well watered, in the State of Lulia. With the great trouble now in our own country in regard to the high prices of meat, I think large fortunes could be made if capitalists or cor- porations would take up lands in this State and start in the cattle business. Large profits would be the outcome, and our people would be provided with cheap, wholesome meat — a benefit to the enterprise and a blessing to our poorer classes. But not alone the cattle-raising is very profitable, but also the raising of other kind of stock. Goat-raising on a large scale is a business which, attended to with rational care, would give a sure return of from 25 to 30 per cent, a year without any risk. The culture of rubber trees on a large scale would be very profitable. Along our coast line the cultivation of coco trees on a large scale is a sure and large profit, but will need some years before the trees produce. We have districts in Perija where, with irrigation, four large crops of corn can be raised. The mouths of our rivers will give all the land desirable to raise the ISnest crops of bananas and pineapples, as well as fine rice fields and splendid cotton. With our tropical and yet healthy climate, men as well as animals can work outdoors without much inconvenience. The forests of these parts of Venezuela are rich in many sorts of the finest and hardest woods. Our mountains are rich in precious metals, as well as iron and coal. We have abundance of coal oil and asphaltum in good localities ready to be taken up by foreign corporations. A gentleman in Maracaibo holds the concession to build a railroad into ^ the district of Perija, south of the city of Maracaibo, and where every industry, which I before mentioned, can be established with great profit. This sarne part of the country is rich in the finest timber and mineral wealth, as well as asphaltum. It only needs foreign capital to open these Asphalt rich fields, and I would be glad to see American capital enter into this region as "a sesame." . I have spoken about the unsettled political condition and its manitold drawbacks upon our commercial relations, but that would not be a hindrance to the many enterprises I have mentioned; they would not suffer directly under our conditions. . <,tt u a i. 1^ The best proof of my assertion is the enterprise of the Uvalde Asphalt Paving Company," No. i Broadway, New York, who bought the asphalt mines known as '' Inciarte Mines," and now known and Venezuelan Asphalt Company." the ' ' United States 31 These gentlemen have bought the Inciarte Mines and completed their work during our revolutionary times, and can now ship 2000 tons of fine asphaltum a month. . . ..■ , American capital need not fear to embark in enterprises in this consular district. The people are eager to have us; we are treated with consideration ; and I see no reason why American capital should be shy to take up these many fair opportunities which are offered here. I have followed your wish and have given you my opinion upon tlie commercial situation of Venezuela, and especially of this consular district. According to your letter, the representatives of over 200 of our leading Chambers of Commerce and Boards of Trade will meet together to consider the best means to enhance the commercial relations with foreign countries. If tho.se worthy gentlemen mean to enhance and develop our trade with Vene- zuela, then they must consider the way how to give peace and stability to this country; they should consult with our administration, to find speedy means to give lasting peace to this Republic; and if this is accomplished, there is no reason why our commercial jjrospects should not be bright, and a great future of mutual relation in business would spring up at once. Venezuela is one of the richest countries of the world, and the climate is acceptable; but all this immense wealth close to our doors lies dormant until the United States demands and orders that there shall be " Peace." I do not give you any statistics, as the Consular Reports give full infor- mation upon those points; but I add a short article, published in the Vene- zuelan Herald of Caracas, under date of September 5, which reads as follows: ' ' United States Trade with Venezuela. — For the first eleven months of the fiscal year ending June 30, the exports to Venezuela from the United States aggregated 12,648,307, as compared with $3, 107,000 for the cor- Statistlcs responding period of 1901. Imports from Venezuela held their own (even better), the total for the eleven months being $5,913,225, as against 156,034,556 for the corresponding period of the last year. " It therefore appears from these figures that Venezuela imports nearly double what she receives from the United States. " It is also worthy of remark that all imports into the United States from Venezuela are admitted free of duty, and all exports to Venezuela from the United States pay exorbitant rates." BARBADOS. From General Samuel A. Macallister, U. S. Consul at Bridgetown. Bridgetown, Sept. 10, 1902. Barbados is an agricultural and commercial country. There are very few manufacturing interests here, confined as follows: The Gas Works supply light for Bridgetown and vicinity. The Ice Company has a capacity of twenty-five tons daily. There is a plant here for the manufacture of a sulphur match, which is very good of its kind. Its annual product is 3000 gross, its annual capacity is 15,600 gross. This match cannot fairly compete with the safety match in general use here, which is labeled " Made in Sweden " and is imported from Great Britain. Very many matches are used here, and there ought to be a good market here for American matches. There is a plant here for the manufacture of oleomargine, or butterine which began work last year, but the industry is still in its infancy, and its prospects for success are not now known. The machinery in use was imported from the United States, as well as the materials used in its product There is some petroleum here, but the supply so far has been small. Maniak a species of asphalt, a specimen of which I sent you some years ago is mined and exported principally to the United States. The total shipments in 1901 were 1043 tons, valued at 145,092.16. Sugar and molasses, its by-products, are the staples. The United States takes nearly all of the sugar, and Canada gets the most of the molasses. The 32 food supplies come from the United States, Great Britain, and Canada, the greater part from the United States. Several lines of steamers run between Barbados and New York, and one line between Barbados and Halifax and St. Johns. Nearly ajl the exports go by steamer, and the imports come both by steamer and sailing vessel. Vessels drawing not over 14 feet of water can go to the wharves. Vessels of larger size receive and discharge cargoes by lighters. The system of lighterage here is excellent. Several hundreds of vessels can anchor conveniently in Carlisle Bay. The harbor dues are reasonable. There are cable facilities from Barbados throughout the world. From 1400 to 2500 vessels enter and clear here annually, the number depending on trade conditions. Bills payable in New York in American gold are issued by the Colonial Bank and merchants at not more than iX P^r cent, discount or premium, varying according to the conditions of the money market. Commercial travelers are not required to pay license fees, and they may exhibit their goods in or out of bond, under limitations, which are not oner- ous. There are ample hotel accommodations at reasonable rates. The climate of Barbados is the best and most healthful of any place in the tropics, the island being low; the trade winds sweep over it and greatly moderate the heat of the tropical sun. The health of the island has always been good. Until this year, when smallpox broke out from a person who came from Halifax, the island has had no epidemic disease for many years. The island lying in the " teeth of the trades," and being principally of coral formation and free from marshes and low grounds, contagious or infectious diseases never originate here. As a winter resort for people living in cold latitudes, Barbados has no superior. The United States, Great Britain, and Canada are the principal countries from which importations are made. The following comparative table of the principal articles imported from these countries, with their values, for the year igot, will be instructive: Sugar an-.«l increase in the demands.^ Accord- ing to the official French customs statistics, the total imports into France in 1901 were valued at $910,000,000, of which the United States contributed $93^.000 a fraction over ,0 per cent. We sent to France 15 per cent of her wood imports, 20 per cent, of the machines and machinery imported; 38 5-5 per cent, of the tools and hardware, ii.S per cent, of the lumber and woodwork, 7 per cent, of the dressed skins, i.'25 per cent, of the chemical products, 18.75 per cent, of the oil cake, and 7 per cent, of the rubber goods received. The imports of paper pulp, jewelry, watches, clocks, pottery, and glassware from the United States were so comparatively small that they were included under the general term of other articles. Now, the question is whether the above percentage can be increased. I think they can. I doubt very much if there are over fifty of our manufacturing concerns which are properly represented in France. I mean that there are not over the above number of American houses which have head agencies in Paris, with agents in the provincial cities, who canvass their various districts, to advertise their goods and to solicit orders. Havre is a city of 130,000 inhabitants; but if one wi-^hed to buy American dairy machinery, he would not be able to do so without either going or writing to Paris. In that city he would find the machines made by one or two American concerns only, and sold by French houses. On the other hand, in all the agricultural centers, French, Danish, and Swedish churns, centrifugal separators, butter-workers, etc. , are extensively advertised and kept in stock. There are few hotels, cafds, or restaurants in the farming districts of France in which posters are not displayed advertising American harvesting machinery, and giving the name of the nearest resident agent. But I have never seen, and I have traveled over a large portion of France, an advertisement of a potato digger and sorter, or any of this class of labor- Sbving machines which are so extensively used in the United States. American ice cream freezers for family use can be bought in several of the department stores in Havre; but if you wanted a household refrigerator, the use of which is constantly increasing in France, you would find one store which keeps them, but only one make, and that not of the best. If you wanted an American base-burning stove, you might perhaps find one or two French imitations on sale. But to have the genuine article: if you happened to know the agents of American stoves in Paris (for they are not advertised), you could write and would receive a catalogue in reply, from which selection could be made. If the stove chosen were in stock, you would receive it in about a week. If not on hand, you would have to wait at least six weeks. Two of the best makes of American lawn mowers can be bought in Havre. American-made shoes are being more extensively displayed in the shop windows; but by no means are good assortments as yet kept in stock. I have never seen an American fire and burglar proof safe on sale in this city, nor have I ever heard of one being used. American lathes, and other machine tools made by several of our princi- pal manufacturers, can be bought from the machinery dealers of Havre. If the tool desired should not be on hand, the dealer can easily get it from the agents in Paris, where large stocks are kept; but if a builder wished to intro- duce into a house the American system of heating by hot water or steam, or to furnish balh-rooms with American specialties, he would find much trouble in doing so. Several of my personal friends have porcelain bath-tubs and sanitarv water-closets, but thev sent to England for them. Arnerican building hardware, locks, etc., are also but little known in the French provincial towns, neither are American sporting implements. In the past five years outdoor sports have become very popular in France. Formerly football and tennis were confined to Paris, where there is always a large colony of Americans and English; but now these games are extensively played in the provinces. I have never seen American balls, racquets, nets, etc. used. In my opinion, with proper methods, our trade with France in the following products could be materially increased: steam fire engines, printing presses, printing materials, hardware including locks, builders' hardware, hot air and gas engines, chairs, desks and other oflSce furniture, parlor organs, mechan- ical piano-players, chemical products, etc. Spasmodic attempts to create foreign trade are never successful. If our manufacturers.ate serious in their desire to secure outlets abroad for their Agencies StooKs 39 Systematic Bttort Execution of Orders Metric System Tariff Reg-ula- tions Trade Essentials products, they should make systematic efforts, based on sound business methods to do so They should become conversant with the needs and mode of life of the foreigners to whom they wisii to sell their wares, and then furnish goods whicto will be acceptable. Let our exporters treat the foreigners courteously and kindly; let them feel that they can get what they want and that they can always depend upon quick and complete shipments of their orders. The principle that anything is good enough for the foreigner will not increase our export trade. He knows what goods he can get and the prices he should pay. Even more care and attention should be given to filling foreign orders than those fcr the home markets; for mistakes are harder to rectifv. Do not send too much or too little, but execute the order exactly as it is' given; or else vexatious delays are bound to occur, with possibly a refusal of the goods and a lawsuit and certainly a loss of future trade. One of the largest wood importers in France tells me that he is almost tem pted to give up entirely the handling of American wood. He says he seldom received a cargo which is according to what he ordered. Either the amount is in excess or falls short, and often the quality is inferior to that which he expected to get. The American shipper, recognizing that the order is not properly filled, writes that the question of quantity and quality can be left to arbitration. This way of doing business is always unsatisfactory to the buyer, as he never knows what he may expect, and there is always an unforeseen expense. The sooner American exporters learn the metric system of measure- ment, the more chances they will have of successfully meeting foreign com- petition in the French markets. For example, Austrian oak in France com- mands a higher price than American oak, and is used in preference, although in many ca^es the former is not as good as the American wood. The reason is that the Austrian shippers are careful in having their wood sawed to the metric dimensions called for by the French consumers, while American shippers send their wood sawed to inches. There may not be much differ- ence in the measurements, but there is enough to make the French cabinet- maker prefer the Austrian oak. The French customs law permits the free entry of certain woods, if they are sawed to more than 2 decimetres (7^87 inches) square in the logs. If the logs measure even a small fraction under the above dimensions, they have to pay a duty of Frs. 1.50 (28.9 cents) per 100 kilogrammes (220.4 pounds.) Frequently, owing to careless sawing and unfamiliarty with metric measurements, American shippers send logs to Havre which measure less than 7.87 inches, perhaps at one end only, which necessitates the consignee paying the duty on the whole log. In answer to my inquiry as to what are the essential requirements for transacting business successfully in France, the manager of one of the most important American concerns in this country writes me as follows: "i. You must speak the language well and be of good address. 2. You must be courteous. 3. You must know your subject well and how to present it. 4. You must be familiar with the customs and manners of the country. 5. You must make your proposition in the French monetary system French measurements and weights, and, if possible, present prices for goods delivered in France, free of duty and transport. 6. You must be able to accept a penalty for non-delivery on time 7. You must have a good knowledge of French business law No' verbal arrangements will hold in French business courts (Tribunaux de Commerce) Everything must be documentary. Please note that in every French firm of importance there is an expert in business law who examines every important letter to see that there are no flaws in it. ^^ 8. Do not get into any entanglements without consulting a French F3^p:o7e do^notreurv't'jo'u':" "^ '°*°^ ^" ^'°^"'=^' ^^ ---y °"- the 10. Don't criticise the French people. They have reasons, very often for doing things their own way. They are very clever, and often foJeigneri 40 •get left.' Don't try to Americanize the French; if you do, you will not transact much business with them. II. If you enter into a competition for an important contract, outside influence will be of great service." At the present time our country is enjoying wonderful prosperity. When Foreign the reaction takes place, and there is a serious depression in our home markets, Trade our manufacturers will realize that foreign trade is an important factor of our Steadies industrial life. Those who have kept up business relations with foreign con- the Burners, thus having outside outlets for the sale of their goods, will be the Home last to reduce their working-force, to run on short time, or to sacrifice their Market overproduction by selling it a loss on the home markets. GERMANY. From Eichard Guenther, U. S. Consul General at Frankfort-on-the-Main. Frankfort-on-the-Main, Sept. 15, 1902. The principal causes which at present seem to prevent further develop- ment of trade between the United States and. this consular district are: 1. The general depression of trade in Germany, which has existed for nearly two years and which will probably last for some time to come, although the worst seems to be over. 2. The faulty methods employed by most of our manufacturers to secure and maintain the German trade. I am quite sure that these reasons apply to the American commerce with reference to the whole of Germany. It may be stated as a general truth that any article of manufacture which finds a ready sale in the United States will sell in Germany, provided it is placed before the public in a proper way and at a reasonable price. American goods are usually looked upon with favor by the general public here, although rival German manufacturers often try to disparage them. While the new German tnriff soon to be enacted will raise duties all along the line, still I believe that many American manufactures will be able to compete here with German goods and those of other countries in the Ger- man market. I do not believe, however, that sporadic efforts to introduce American goods will meet with success. It will not do for an American manufacturer to expect a paying and lasting trade here unless he first carefully looks the field over. No Consul or commercial man who is not an expert in the particular line is qualified to give an opinion with reference to a particular article which would warrant the American manufacturer to embark in export trade to Germany. If an American manufacturer comes to the conclusion that he is so situ- ated that he at all times will be able to promptly supply the German market with his goods, and believes that on account of the superiority of his manu- facturing facilities he can compete with German and other products in Ger- many, he should then, before doing anything else, either come here himself or send a reliable expert in his line to .study the situation on the spot, look- ing into the rates of transportation and of duties, finding suitable houses to act as his agents, etc. The comparatively small expense of such a course will cut no figure if he succeeds, and even less so if he sees that the business promises no profit, for he will thus save money in the end. In my opinion, American firms have " fooled" much money and effort away by going " off half-cocked," relying upon glittering reports of well- meaning but poorly informed parties here in Germany who judge super- ficially and often leave out of their calculations very important factors, so that the business entered upon with much enthusiasm and promise of success has ended disastrously. My advice to every prospective American exporter to Germany, and for that matter to any other country, is to "go slow," to first acquaint himself with all the conditions of the market, to carefully look Expert InTesti- gatioii 41 Conserva- tive Methods Furniture up suitable agents, have the necessary contracts drawn up by rehable Ger- man attorneys in conformitv with the existing laws, and make preparations, if it is decided to engage in the business, to be able at the shortest notice to supply what is needed by the German customers. I have frequently heard complaints by Germans handling American goods, that their patience and that of their German customers has been sorely tried by the dilatoriness of the American firms to ship further supplies, and not infrequently the Ger- man customers became so disgusted that they gave up dealing in American goods solely for this reason, and handled afterwards only such German or other goods which, although perhaps affording a lesser profit, could be sup- plied on short notice. There are many articles of American manufacture which would command a ready and profitable sale if the precautious I have tried to indicate would be taken. The success of many American firms in Germany is well known. The statistics of our exports to Germany speak louder than individuals. One branch which, above many others, would seem to promise well is that of furniture for the poorer and middle classes. No country, on account of the abundant supply of raw material and of the large scale of manufacture and superiority of machinery, can compete successfully with the United States. If a furniture syndicate would send an intelligent expert over here to study the styles " in vogue," establish depots say at Bremen, Hamburg, or some other suitable place; ship the furniture so as to get the benefit of the lowest rates (as ocean freights are based upon space, not on weight) — ship the furniture, therefore, in what I believe is termed " knockdown" shape, to be put together on this side and varnished here — I would feel certain of an excellent paying business, provided the same is conducted by men well posted in it and who possess that commercial tact and intelligence which marks successful American business men at home. A company with sufficient means to establish large salesrooms in the various large cities of the United States would do a business which would in all probability exceed their most sanguine expectations. I have no statis- tics on hand, but I think not be in error b3' stating that of all furniture im- ported into Germany the United States does not supply more than about 15 per cent. It should be 80 per cent, at least; and, besides, American furniture, for the reasons stated, should also supplant a great part of the home manufacture, as any expert coming over here would see at a glance. The same reasons apply to a number of other articles of American manu- facture — as, for instance, to boots and shoes, tools of all kinds, stoves, clocks, watches, sashes, doors and blinds, locks, hinges, door-knobs, etc. — in fact, to very many articles which are the product of manufacture on a scale the magnitude of which is hardly known in Germany nor in other European countries, and also of the most improved modern machmery. But before Americans embark in trying to do an export trade, the only safe way, in every instance, is to first investigate the field most -carefully: only the expert is competent to judge intelligently, and he only after he has looked the new field over personally. Such a person may get many valuable hints from our Consuls, who have more or less knowledge of existing condi- tions in consequence of years of residence here; they often can tell them which people would make reliable agents, and which not, etc. An interview of such experts in a certain branch of goods with wide-awake United States Consuls and other persons here will often clear the atmosphere and lead either to abandoning the effort or to establishing trade relations and in either case money will be saved in the end. In my opinion a shrewd Ameri- can business man should not rely implicitly upon the opinions of outsiders no matter how honest they may be. If he feels that he has an article capable of competing with similar ones in Germany, and a sufficient capital to buildup trade here, and this is very essential, then let him come in person or bv a competent proxy and examine into every phase of the business and from different points of view, find out exactly the prevailing prices of similar arti- cles in Germany and at what price he can supply them after paying the transportation charges, the duties, commissions, etc. f ^ " 42 My advice to everyone from the United States intending' to do business here has always been to "go slow," not to take my say-so as sufficient nor that of anybody else, but first investigate personally and thoroughly. If this is done, fewer failures and more successes will be recorded. I shall be pleased at any time to answer any inquiry from parties in the United States to the best of my knowledge and try to give them the unvarn- ished truth according to the light I have. This may not always meet the expectations of the inquirers, especially when so often glowing accounts of great probabilities and possibilities for American goods are published by people with more imagination than actual knowledge. I only need in this connection call attention to the voluminous reports within the last two years of the great business that could be done in Germany with American coal. In all my numerous reports to the State Department concerning coal, I deprecated the idea of Americans being able to make any money out of such a venture in the long run, giving my reasons for this opinion, and by doing so I feel that I have done right. I consider it my duty to advise my country- men fully as much, if not more so, what not to do, as what to do, with reference to trade with Germany. In closing this hasty letter, I again wish to say to all Americans who wish to extend their trade to Germany: " Go slow, and investigate before sending your goods to this country." ' ' Look before you leap. ' ' BRITISH GUIANA. From George H. Moulton, U. S. Consul at Demerara. DEMERARA, Sept. 9, 1902. Trade Relations of the United States with British, Dutch, and French Guiana. The principal causes operating against the development of closer trade relations with this colony are as follows: 1. Nearly all the sugar estates and the principal mercantile concerns are owned by absentee proprietors residing in Great Britain. They are managed and conducted by their agents or attorneys residing temporarily in the colony, who export the product of the estates and import also the things required in their own business and by the citizens of the country. 2. These absentee proprietors are themselves engaged or interested in the manufacture of nearly everything needed in this market, and the local mercantile houses are usually branches of the principal concerns established in the mother country. 3. The local system of open accounts and long credits to retail shop- keepers. The measures which it is advisable to use in combatting the superior advantages enjoyed by the English market are: 1. To become thoroughly familiar with local requirements through the personal efforts of capable trade representatives and conform strictly to them. , . . . . J 2. Adopt an elastic but safe and accommodating business system and undersell competitors. , , , 3 Encourage the establishment of a steamship line under the American flag, with an active and enterprising American citizen as local agent for the same. . ,^1^1 Our strength at present lies in offering the best market for the raw sugar produced in the colony, and our ability to supply all the breadstuffs and provisions required in this country, which is dependent on foreign im- ^° We are much nearer this market than any European country, which is greatly to our advantage. Freight rates from New York are 33 to 50 per cent, less than from Liverpool or London. 43 Our weakness consists in failure to push our advantages with sufficient spirit and, to adapt our manufactured products to local conditions which require cheap goods mostly. The statements herein made apply in the main to Dutch Guiana, where its commercial policy is largely dictated by non-residents in the mother country. The fact that our trade there is improving indicates that pecuniary considerations in trade will always outweigh sentimental ones. Our relations with French Guiana consist solely in supplying the col- ony with breadstuffs and provisions and a few miscellaneous manufactured articles. It need not be seriously considered except as a very limited mar- ket for foodstuffs. There are at present no enterprises contemplated in this consular dis- trict inviting the attention of citizens of the United States. STRIA. From G. Bie Havndal, U. S. Consul at Beirut. Beirut, Sept. 3, 1902. American Trade in the Near East. — Until three or four years ago, with the exception of small shipments to American missionaries, consisting of groceries, books, scientific instruments, school furniture, etc., and amount- ing to some eighty tons a year, no American goods came direct to the markets here. Singer sewing machines were bought in Hamburg, and meats canned in Chicago brought from London, but dealing direct with American manufac- turers or exporters was considered out of the question. Many prejudices have been battered down since then, and now, in Syria and Palestine, American agricultural implements, beer, canned provisions and groceries, BirectSales leather, pumps, phonographs, rubber shoes, sewing machines, windmills, and wire nails have a pretty firm foothold, while promising experiments are being pursued in coal, cotton fabrics, farm machinery, flour, furniture, irri- gation contrivances, iron and steel, lamps, lumber, paints, paper, patent medicines, shoes, and watches. American mechanics' tools and small hard- ware may be said to have passed the experimenal stage and our trade with Syria in these articles is fairly well established. Special difiiculties have been encountered in the American demand for cash in advance, but the question of terms of payment is becoming less formidable with the advent of American commercial travelers and direct and regular steamers which tend to build up closer relations and mutual con- fidence. Our trade with Syria is still of small importance, if one simply looks at the present amount of business transacted; the future, however, holds out promises for this country, which is as yet undeveloped' and unex- ploited, and for our commerce with it. Details of Our Trade with Syria.— Looking at things from an American commercial point of view, it seems that by buying the Syrian raw silk, of which about fo.ooo.ooo worth is exported each year to France and which in all essential particulars resembles the Italian silk, of which product the United States buys more than ;Jio,ooo,ooo annually, we should get into very intimate relations with this country, which in return would heartilv welcome our manufactures. We buy now nearly all the wool, licorice root, and bitumen which Syria produces, besides rugs and other Oriental goods but silk is to Syria what wheat is to our Northwest, what cotton is to the South Perhaps none of our manufacturers will find a mo.e inviting field in Syria than agricultural and irrigation machinery. In this line a little start has been accomphshed, but mostly by way of ^periment However the demand m Western Asia for such machinery is likely soon to become geAeial and leap into importance, as the antiquated tools and methods of 2000 vears ago, still in vogue here, seem about to be replaced by a new order of things The completion of the Bagdad Railway will close the chapter of desoSn 44 and exclusiveness in Turkey-in-Asia. With it will dawn a new era for the Empires of the Old Testament. Orders have been sent to the United States since New Year's for a steam threshing outfit and twenty harvesting machines; also for a hydraulic ram and a petroleum engine. Some sixty oil engines of German and English manufacture have been sold in Palestine during the last year or two, and some American self-binders bought in Hamburg have entered this country via Haifa. But, generally speaking, the orders mentioned are pioneers and advsnce agents of Western civilization, proclaiming the approaching indus- trial redemption of these ancient lands, which are but shadows of their former selves. The plains of Jezreel, Hauran, and Bekaa especially present suitable opportunities for the employment of both farm and irrigation machinery. Enterprising agents for American manufactures of this kind, when in Europe, should be ordered here to canvass the field and form con- nections, help to make experiments with the machines a success, and teach the natives how to run and repair them. MADEIRA. From Thomas C. Jones, IT. S. Consul at Funchal. FuNCHAi<, Sept. 15, 1902. I do not think the trade of Madeira is worth struggling for. A number of articles are not allowed importation. Matches are a monopoly and must come from Portugal. You cannot import fiour. Wheat comes from America, but a commission appointed by the Government must say How much an importer can bring in. All wheat in Portugal must be exhausted before any can be imported. Besides all this, the duties are almost prohibitive. BRITISH GUIANA. From Gustav H. Eichter, Member of the Advisory Board and Merchant at Demerara. Georgetown, Sept. 11, 1902. The sketched reciprocity treaty between the United States and our colony seems hung up for the time anyhow, and whether this is an advantage or otherwise for either side will only be known to us some time after the Brus- sels Conference has taken effect. Personally, I believe that American manufacturers have taken very little heed from the many good pieces of advice tendered them at the capital meet- ings of 1897 in the United States. They have not pushed their trade and the opening of new fields of export sufficiently by themselves. They seem to be too much of opinion that letter- writing or the sending of printed circulars, elaborate indeed, is all that is Travelers wanted to bring trade home to them; and. latterly, they seem to have taken Seeded up the opinion that the American Consul at the place is a sort of "agent" of all kinds of branches of business, ancient and modern, and that he is a kind of commis voyageur at the beck and call of any American manu- This is quite a mistake, which should be brought home to them. The Germans send out their trained and practical travelers to invite and initiate new hxx%me.s.i—Fachleute, who can teach their new customers and convince them of the value of their new wares. Of English travelers there are now- adays more to be seen about than a decade ago. Of American traveling agents there are new ones to be seen almost every month in this colony, but they are generally representing the flour and food- stuff people who do not by any means increase American exports, but simply compete against each other, while only very seldom one comes across an American traveling agent who pursues the special manufacturing interest. 45 While, therefore, there is little need for personal i-epresent^"^" "^ j*^^ foodstuff business, which has always, and wUl always ^^f '""S *" t'j^^Y""f States without any effort, there is every reason why American manufacturers ^th thdr imtn^nL output and with their innumerable >"ven ions should send their trained representatives, Fachleute,^ to the "^^.^^^8 of enter- prise to meet the competitors of European nations. To write a letter to the American Consul is certainly an easy and cheap way to get general intorma- tion on trade, but it is certainly " not business" nor calculated to advance ^^^""ram writing, of course, only in reference to this and neighboring Eng- lish colonies, aSd do not express an opinion on the efforts of American manufacturers in the Spanish and Portuguese Republics. CANARY ISLANDS. From Solomon Berliner, U. S. Cousul at TenerifTe. TBNERIFFB, Sept. II, 1902. Jfced of Direct Shipping; Facilities TJ. S. and The district of the Canary Islands is but sparsely inhabited, and the com- mercial field is consequently of minor importance; at the same time the trade is certainly worth cultivating, especially so on the part of American mer- chants, who, in my opinion, do not at present possess their fair share. I am, however convinced that there is little hope for any considerable augmentation in the trade between the Islands and the United States until direct communication is established. The principal articles of import at present are lard, lumber, petroleum, tobacco, bacon and flour. With the exception of lumber and petroleurn, which come in sailing vessels, the bulk of the other articles is imported via Europe. I recently forwarded to the State Department a report, printed July 15, 1902, in which I endeavored to set forth the reasons calling for the e.stablish- ment of a direct steamship line between the United States and the West Coast ■\Vest Africa qJ Africa; but as Consular Reports often fail to reach the parties interested, I take this opportunity of again bringing the. matter forward. In this report I quoted figures proving the importance of the trade, and I can only repeat the conviction that such a line would result in a tremendous increase in the volume of American trade with the countries named. Another feature I have observed, in connection with our trade, is the entire absence of commercial travelers. A visit to one or more of the prin- cipal hotels here — it does not matter at what time of the year — will always reveal the presence of representatives of English. German, and French firms; but since my arrival here I have not come across a single American who has come solely for business purposes. I need hardly point out the great disadvantage this is to our commerce, especially in a district where, owing to the distance, at least five or six weeks are absorbed in writing and receiving an answer to a letter; a competent rep- resentative can furnish as much information in a personal interview of thirty minutes as can be gleaned in six months' letter-writing. In these days of keen competition, orders are often given to the man on the spot, merely because time and trouble are therefore saved. It would be well for our mer- chants to bear in mind the old saying: " If the mountain will not come to Mahomet, Mahomet must go to the mountain." I must also mention the obnoxious system of long credit that obtains here, especially among the smaller merchants, and I fear that Americans can only expect to fight the European competition by adopting similar methods There is but little business conducted on a cash basis, and, whereas formeriv credits of one and two months were allowed, now bills are drawn at terms of four and even six months. The advantage to the merchant is obvious: it allows him time to sell his goods before paying for them. liack of Travelers Credits 46 Referring to articles of import in detail, I feel sure that the sale of the articles above mentioned would be largely increased by direct communica- tion and close attention to local requirements; and I think that, with pushing representatives, a good business might be done in the following articles: hard- ware, furniture, soap, candles, canned goods, beer, and chemical manure. The furniture most generally used here is of Madeira wicker-work, caned chairs, and light furniture; but I think that, at reasonable prices, there would Furniture be a large demand for lightly-made articles of the ordinary manufacture. Chemical manure is largely used in the banana plantations, and the demand for this article is bound to increase as the soil gets poorer. Over two thousand tons were imported from England during 1901. There is an excellent opening for American tools and hardware on account of their superior quality. They originally found a way here by natives' return- ing from Cuba and Porto Rico, and lately .several orders have been sent and filled in the United States. These have given the best satisfaction, and, I have no doubt, will lead to much large orders. In former times we had the whole trade in supplying beer to these Islands, which afterwards dropped to nil. Lately American beer has been re-intro- duced, and it is considered far superior to the German article sold here. The only fault found is that it is a little more expensive. This is easily accounted for on account of the high rates of freight, and if direct communication were established we would again have this entire trade. The consumption is quite large in these Islands. Fertilizer Hardware Beer GERMANY. From Charles L. Cole, U. S. Consul-General at Dresden. DrBSDEN, Sept. 16. 1902. Dresden has a population slightly exceeding 400,000, and during the winter has a resident colony of from 1200 to 1500 Americans, while it is stated that 25,000 tourists from the United 'States pass through the city annually. The English resident colony is greater in number than our own. While many articles of American manufacture are exposed for sale in our shops, very few goods are imported direct. The people live in a hand- to-mouth way; the majority purchase daily the supplies necessary for the coming twenty-four hours, and as a result merchants carry but a limited stock of goods, which they find can be purchased from the large importing houses in Bremen or Hamburg to better advantage than if directly imported. I believe American visitors are mainly the customers for goods manu- factured in the United States, and, I take it, the aim of our merchants and manufacturers is to reach out for the general trade of Saxony. This caunot be accomplished by correspondence or mailing circulars, usually printed in English, which the recipients cannot read and promptly consign to the American manufacturers should send agents here, who will study the wants of the people, then go home and prepare the goods suitable for the market. . . . The results will but slowly develop, and it will require time and patience, but this plan has been adopted with several lines of goods to a satisfactory The bicycle trade has been overdone in Saxony. All kinds of electrical machinery and appliances are made here as perfect and as cheap as in the United States, and such is the fact with many other kinds of machinery. I often receive letters and circulars from manufacturers of steam engines and boilers in the United States, asking me to place them in communication with possible buyers. These people seem to forget that good machinery is made here, and unless their engines have unusual fuel-saving qualities or inducements it is not likely they can find customers. Farms in Saxony are small, labor cheap, and the work usually done by hand- but I have noticed, lately, several shipments of agricultural machines Small stocks Travelers 47 Ag-ricul- tiirul Machinery Shoes York. These steamers ran empty and could have had treight and not Frclglits passed their time flaunting their patriotism in the dailies and congratulating themselves that the Americans were the most progressive people under the sun, and let their chances go by, to establish a good and profitable trade with this and other Pacific Coast countries. Recently the two lines of steamers from here to Panama have extended their territory to Acos, the most northern port of Guatemala, and actually have their agent in Mexico negotiating a subsidy from that country, having already secured one from Guatemala. It has been railroads that have taken the entire time ot the American capitalist— much, perhaps, to the detriment of their interest, that would be better to foster and develop. As this country and the people are producers of raw materials, and probably not for generations, if ever, a manufacturing country, it behooves the United States to conquer the markets, which would be easy indeed if you had the necessary manner of communication. The European goods that come are mostly German and of a very inferior quality. While the Germans nearly control the market, it is not that their goods are either good or cheap, but for'want of other competition. The English goods that come here in their main part are fairly good, especially their threshing machines, engines, and cotton and woolen fabrics. Their ei'.gines are of a better class than the ordinary American engines that come here, inasmuch as they contain more metal and have better lasting qualities. For .special uses like electric light plants, the American "Ball" (a quick- working and very steady-running engine) is better. The English threshing machine (Ransome. Sims & Jeffries') is a fairly good machine — rather slow, but cleans the wheat well. The "BulTalo Pitts" is a superior machine, as it is faster and lighter, and easier kept running, there being some here that have run for more than twenty years steadily. Also the J. L. Case is a good machine, and a great many are sold. What both of those manufacturers should endeavor to do is to improve their machines by simplifying them, but keep their lasting power up, and certain vital parts should be of cast steel, as the labor here is anything but skilled, and they break anything less than Agrioul- cast steel. Nearly the entire machinery for cutting of wheat is of American tiiral manufacture, but leaves a great deal to be desired. As they last but a very MacUincr.v short timf, they should have their vital parts of good cast steel, as steel is nearly as cheap as iron, and the latter is so brittle and causes great trouble, expense, and delays, which here, with our rainy climate, bring great losses to the agriculturalist. Also all wheat and hay cutting machinery should be "geared" to run the cycle (or side) bar faster, as they are calculated to the walk of the horse, which is about ^ji or 4 miles per hour; meanwhile all traction force here is bullocks, and does not exceed 2% to 3 miles per hour. The machine for that reason does not vibrate fast enough, causing the machine to "choke up" and drag the grain out, roots and all. By a very small expense in changing their spur and pinion gears, their machinery would find still more favor; also send their catalogues in Spanish, as that is the only language spoken here. While the German manufacturer adapts himself to the wants of his customers, the Yankee and Englishman want to make the customer adapt himself to their tastes; while it would be a good thing if possible, it is rather difficult, especially with Spanish blood. Some time since, in showing some Frenchmen here through a mill butlt by an Englishman, and the machinery of American production, they re- marked that the machinery was very "crude." It is the best milling machinery that comes here, but unfortunately was ratherplainly painted, the manufacturers being American, who believe in— all for utility and little for ornamentation; 53 These people, French and all, of Latin blood are guided a great deal by the exterior -appearance more than by the real merits of a thing; we must dissimulate more and use a little more fancy-colored paint, so as to please their eye as well as their mind. \ . • The Germans imitate and send here a machine (sewing) that is an out- rage on the poor, patient, suffering public, and all because there is no one to bring in our good Singer, Howe, New Home, and various other sewing machines, that would find a ready sale and good profits and soon leave the German imitations out of the race. It is the same with American fabrics of cotton, which are highly esteemed here and could have at least 90 per cent, of the entire trade if the American manufacturer could only come to the retail dealer direct in place of selling to some New York exporting house, who in turn sells to some importing house here, while the European manufacturer sells direct and gives from six to twelve months' time. While I do not approve of the question of long time to pay in, as our money (Chile) is of rather of uncertain quantity, I think it best to show the fact. MEXICO. From Julio Braoho, Member of the Advisory Board, Plantation of Ochoa, State of Durango, Mexico. DURANGO, Sept. 22, I902. I beg to give the following information to the importers of machinery into this country: It is customary now to establish exclusive agencies for agricultural machinery, without allowing to the commi.ssion merchants the commission that they would add to the cost of the goods, and the result is, on one side, that the agencies, being exclusive, do not leave room for com- petition, and not enough machinery is introduced for sale; and, on the other side, the commis.=ion merchants charge too much for their goods, the price never being less than 30 per cent. I have bought direct a press ifor straw which has cost me here a little over $500 Mexican currency, having paid high freights because it was a machine made of iron only, and a friend of mine bought from a commission merchant a similar machine, but made of wood and iron, and this kind, being lighter and having more accessories, pays less freight, therefore it should be a great deal cheaper; but they charged him for it the amount of $580 Mexican currepcy. Should this matter be taken into consideration, the demand for said goods would increase. SAXONY. From Thomas Bwing Moore, U. S, Consul at Weimar. Weimar, Sept. ig, 1902. I am in receipt of your letter of the 13th ultimo relative to the forth- coming meeting of your Advisory Board and requesting an expression of my opinion on some of the leading trade interests centering about my Con- sulate. It is with great pleasure that I acceed to such a request from your valuable organization. Your work tends, in my opinion, towards exactly the result needed, i.e. to wake up the United States manufacturer. I can assure you that it is far from encouraging to see the advice we furnish intending exporters ignored and the results of special inquiries and reports in their behalf fruitless. Of the hundreds of letters asking information relative to markets, trade conditions, etc., which I have replied to in detail, I cannot find any evidence that one of the writers has made the slightest effort to act' upon the advice given. How many still draw up a circular letter, send it to each of our Consuls, get his views, and then revert to the useless and anti- quated method of sending our catalogues and trade literature in the English 54 language and with United States weights and measures. They almost invari- ably seem loath to go to the expense of sending a well-equipped traveler, or opening a trial agency at one of the important commercial ports or centers. Our Consuls have for years pointed out the right way for our manufacturers and merchants to get control of the foreign markets for certain classes of merchandise. Many have doubtless availed themselves of the instruction given, but how many have utterly failed to grasp their opportunities! The German traveler is a model; in the first place, he knows all about the articles he sells, he is a linguist, speaks the langiiage of the countrj- he visits in his capacity of commercial traveler, he finds out what the people require, and this he has made, if he hasn't it already, no matter how unlike the German article it may happen to be — and he finds a market for it. As far as Weimar and its consular district are concerned, I have re- peatedly called attention to the opening for American machine tools, fur- niture, and locks and keys. These are unquestionably superior to any offered here, 3et one does not see them. For example, all the locks used on doors are clumsy, medieval affairs, the keys are three or four inches long; every man you meet has two of these at least in his pocket — one for the outside door and one for the door of his apartment; for almost all families live in flats in Germany. One can at once see the advantage of Yale locks and keys; but they are unknown here. German household utensils and implements are cheaply made and of the most perishable quality. There is a market for these in pvery part of Germany, and as well, I presume, in most other parts of the world. German furniture is homely in design and poor in finish; the wood used is soft and the varnish poor. The elegance and finish, as well as the durable quality, of American furniture ought to secure it a market of great impor- tance I have offered to arrange an exhibition of furniture here for a Grand Rapids firm that applied to me, and to buy it myself if it were not sold. This firm never even answered my letter nor paid the slightest attention to my proposal. This is very discouraging. SWITZERLAND. From Adolph L. Frankenthal, U. S. Consul at Berne. BERNB, Sept. 20, 1902. Through the Consular Reports and the yearly Commercial Relations the American firms and manufacturers learn what goods are purchased by Switzerland, from whom, and in what quantities. It is, however, my inten- tion of bringing before the meeting of the Advisory Board several facts that tend to injure American prospects, rather than statistics and figures un- doubtedly known to all members. I refer to the old-standing faults found in circulars, advertising matter of all kinds, monetary system and measure- ments, and, by no means least, the swarms of insufficiently stamped letters and printed matter sent out by American houses. Within the last few years American firms that are not represented abroad by agents have resorted more and more to the circular scheme of extending their business, producing this advertising matter in the language of the country to which reams have been sent. In many instances this means of spreading the doctrine of their wares has been well accomplished, cleverly worded and neatly illustrated prospectuses and booklets being the result, for no nation on earth understands good advertising better than the American But, unfortunately, in the majority of instances there has always been some flaw. If the German language were used prices were most likely given in dollars and cents; if this were not the case, then the units of measurements were feet and inches instead of the metric system; ".these faults were not apparent, then American trade abbreviations were used in the foreign text, which made the greater part of the purport of the expensive advertisement scarcely definable to the foreign readers. Advertising matter, in order to be of service, should contain what there is to say regarding the 55 goods in the language of the country, the measurements m the system used in the country, the designations of sizes or technical terms or descriptions in the technical'language Si the country, and the monetary units reduced prop- erly into those of the country to which it i? sent, while such pnces should be giy'en f.o.b. a European port But one live man to push the goods is superior to thousands of dead circulars. , u-^ r j- Now to thresh out the "due postage" nuisance. The habit of sending out insufficiently stamped letters to a foreign country is quite universal in the United States. Due postage on these has to be paid at the rate of double the amount lacking. Scarcely a mail is received at this office but what sev- eral letters are delinquent in this respect. Foreign firms and business men look upon this fault as a breach of business etiquette and almost as an insult and in many cases refuse to accept such a letter, allowing it to be returned to the writer. The habit has grown in alarming proportions since the United States houses have been extending their foreign trade m late years, and it forms a species of carelessness that should be abolished. An American will say: " Oh, you see, the letters are stamped by office boys, and it is very easy to let a foreign letter slip through," or: " The stenographer made a mistake." But the letters should not be allowed to "slip through," and the stenographer should not be allowed to " make a mistake." I heard of this answer being given when the matter was mentioned: " But no foreign firm is going to lose the chance of making hundreds of dollars for the sake of a few cents to pay on a letter." Such answers are no excuses, and no reply can atone for this growing habit. It causes a lack of confidence in the minds of the receivers. It causes more harm than the contents of the letter can overcome. It is slipshod and brings with it the idea that the business of that particular house must be run at loose ends to allow such an error. In many cases a single-weight letter (less than one-half ounce) bears a two-cent stamp instead of five. The addressee has to pay six cents. If the letter is over-weight, a double letter, he has to pay sixteen cents. Another phase is the stamping of a foreign letter with a five-cent stamp and then stuffing the envelope, after i he letter has been enclosed, with printed circulars. This increases the weight, so that any amount from ten cents to forty cents has to be paid if the receiver wants the letter. I wrote recently to the Engli-.h branch establishment of an American house for their stvlebook for shoes — a pamphlet that would have cost a half penny or one cent to mail as printed matter. But no; the firm must needs write me a letter saying that it was with great pleasure that they complied with my request, and they sent the booklet in the envelope, with the letter, on which were plastered due stamps calling for thirty cents. I returned the book. If ignorance of the foreign or international postal laws is the ground- work of this nuisance, it should be remedied; if mailirg clerks are the cause, they should be instructed; if carelessness or thoughtlessness is the reason, it should be brought to the mind of the offender! The annoyance is but harmful to the perpetrator. It is un American. It is unbusinesslike. It should cease. BRAZIL. From K. K. Kenneday, U. S. Consul at Para. Para, Sept. 12, 1902. One of the most important .steps taken in recent years in the direction of expanding and promoting American commercial interests in this region IS, m rny opinion the organization (just completed) of a large American house here for the importation, introduction, and sale of nothine but American goods. ^ui-^nig T! ^T'i*'-f" machinery, tools, and hardware are making such headway in Brazil that, if proper facilities are afforded to good men, there is no doubt our manufacturers wi 1 soon monopolize this trade, just as we now monopolize the flour and oil trades here. American electrical goods are alsoTn ^great 56 favor here, and are giving perfect satisfaction vpherever tried. These goods also promise to become an important feature of our export trade. Foodstuffs ot all kinds— and especially canned goods— are in great demand here, and we should, and can, have a much larger share of this trade. As I have said and repeated so often in my reports to the Department of State, it is a waste of time and money for American manufacturers to attempt to open up and develop trade in South America by means of long-range correspondence and printed matter. Good, attractive, well-illustrated cata- logues, in Spanish and Portuguese, may be of some value as "follow-up" matter, but most of them will promptly fall into the waste-basket. It is only by having skilled salesmen on the ground — men who speak the language and know the people and their peculiarities, tastes, needs, wants and cus- toms — that American houses can compete successfully with the European manufacturers, who have their salesmen always on hand with attractive samples, pushing sales and expanding trade. It is for th's reason, among others, that I consider the establishment here of the before-mentioned All-American firm a matter of so much impor- tance to American manufacturers, who should not be slow to take advantage of the opportunity. CHILE. From Henry "Watson, Merchant, Valparaiso, Chile. Our principal export to the United States is nitrate of soda, and surely a large amount of that chemical must be used in your country, so that a vessel loading for this coast would be sure of a return cargo. There is a cer- tain demand for pig iron; coal will always sell (soft household); plows, shovels, axes, pinks, saws, sandpaper, shoe pegs, shoe nails, pitch-tar resin, ice cream freezers, hay forks, grindstones, cut tacks, manila rope, cotton canvas, blocks, ash oars, coopers' tools, chains, pitch pine, turpentine, and mineral oils, all come from the United States. We have copper, wool, copper ores of all grades, and manganese that are exported to Europe. It is hard to extend business between two places that have poor commu- nications but the moment that there is good communication, business must ensue if there are commodities to interchange. I find that we are badly served by the steamship lines from New York, although we pay them i5, 17, and 23 cents per foot, J6.40, f6.8o, and $9.20, plus 5 per cent, per ton freight paid m advance. There are frequently large shipments of rolling stock of railways. CONTRACTS IN" EGYPT. From Kichard Brown & Co., Merchants and Contractors, Alexandria and Cairo. The bulk of the contracts of the Egyptian Government are thrown open to public tender. A stipulation is made in the majority of cases that the contracting firm shall have an agent resident in Egypt; and this is made chiefly with a view to the prompt settlement of negotiations, and the con- venience of calling in a representative of the contractors at once, in the event of questions arising in connection with the delivery of goods, nonconformity with specification or sample, delays, and so on. Prices have to be quoted f.o.b. Alexandria, or c.i.f. in many cases, whilst in others a price is required for free delivery at Cairo or some other town in the interior, or at some spot on the Nile, and quotations are almost invariably called for in Egyptian money. Hence the services of a local agent are obviously required, to convert prices of tenders into European currency, add cost of clearing from ship, and transport to the interior, obtain specifica- tions and information in good time, and hand in the tenders to the proper ofi5cial and at the proper moment. 57 The same remarks apply, in the abstract, to the contracts with public and private corporations in this country; but in this direction private treaty is chiefly required. , „ , ,• , r * We may point out that there is here a good field for the display of enter- prise on the part of makers of railway material, locomotives, wagons, rails, sleepers, tarpaulins, etc. , telegraph wire, telephone wire, sailcloth and canvas, lamps and lanterns, materials for upholstering railway cars, leather accoutre- ments, and saddlery for military purposes. Mining Macbiuery Drills SOUTH AFRICA. From Consul-General H. Clay Evans. Comprising Extracts and Editorial Notes from Soitth Aftican Trade Journals. Before the war there were 6,000 stamps clanging along the reef, crushing the gold-laden ore. Ere long, we are assured from the chamber of mines— the inner circle of ownership— there will be 17,000 of these ponderous iron heels pounding away between Randfontein and Bocksburg, and the ratio of well-being is to rise in strict proportion. If, for argument's sake, a6,ooo-stamp industry signified ^3,000,000 (114,599,000) worth of imports to support the dependent population, we shall want nearly /g, 000, 000 (143,798,000) worth of goods of all sorts when the new batteries are in full swing. Who is going to annex this tremendous increase in trade? There is only one answer: Great Britain. It did not need a special mission to settle the point, for this very simple reason if for no other. Not a single " house " at home but has an agent or representative on the spot. The manufacturer in Great Britain knows better than his rival in any part of the world what are the conditions and requirements of South Africa, from Cape Point to the Zambezi, and he can do all the trade he wants — if he wishes. The only serious competition will come from America. It does not neces- sarily follow that the machinists of Lancashire and the Black Country should throw up the sponge before the first round. They can learn many lessons from the enterprising American and creep into his footsteps. One reason wh5' the costly mine machinery has, in late years, come largely from the United States is this: The kind of machine used on the Rand is to all intents the same as has been used in the silver mines of Nevada for many years, and competition there evolved the fittest, so that when these fields began to develop there was a plant ready for shipment in New York; but, in spite of low ocean freights, the American has been gradually pushed back until we find — what? That Messrs. Fraser and Chalmers, the one-time monopolists of mine outfits, have started huge works at Erith for the pro- duction of these heavy fabrics. Thus the trade has largely migrated to England, and solely because British materials cannot be equaled in the world. No mine ever starts unless the ground has been tested by a "bore hole,'' drilled, it may be, through a couple of thousand feet of rock in search of the precious reef. The drill, which is a disk studded with rough diamonds, eats its way downward with a rotary motion, and in its hollow interior lodges the "core," a slender cylinder that is now and again examined for traces of banket, or gold-bearing rock. Now, why is it that the British firms cannot make headway with their drills against the Americans ? There is not a British drill at work on the Rand; they are heavy, cum- brous, slow. The American machine is light, compact, easily worked. Of course, diamond drills have been in use so long in America that the type has been perfected, but experts tell me there is no earthly reason why the same or a better machine should not be turned out from a Lancashire or Stafford- shire workshop. As drills cost from ^1,000 to .;^5,ooo ($4,890 to $24,300), according to the length of rods, there is money waiting to be earned. 58 In the early days of the Raiid, the supply of picks, shovels, light trolleys, and rats used underground to carry the hewn rock to the shaft foot was was almost entirely in the han.ls of Americans. ShefBeld and Birmingham have captured this market and can hold it against all comers on downright merit. For the same reason, Tangyes and "Lancashire" boilers are favor- ites along the reef. Al.'-o, where once the Americans supplied three-fourths of the compressed-air drills used against the "face" below ground, the "Climax," made in Cornwall, now stands in the first place. On winding engines and air compressors almost every name plate bears the name of some British firm. The Duchy also has perseveringly set itself to work against Germany in the making of safety or time fusts, of which large quantities are used in blasting the banket rock. Germanj' not so long ago had this supply as a monopoly, but by sheer merit the fuses made at Bickord, Cornwall, have regained a very large portion of the lost business. No one needs to be surprised to learn that America walks off with the lion's share of trade in food supplies. The enormous grain stores of the West, the abattoirs of Chicago, and the colossal tinning depots of that coun- try send their .surplus here at terms of cost and freight that render British competition hopeless even if Great Britain were a producing center instead of a world's entrepot. Imple- Boilers Fuses Food [Supplies British trade is in an exceedingly strong position in South Africa, and in those lines in which she may naturally expect to share, Great Britain was never better placed. Let the British manufacturer bear these figures in mind: Of the whole Transvaal import trade the Old Country does 75 percent., America 15 per cent., and all other countries in the world divide 10 per cent, among them. America comes in with goods that nature and experience have fitted her to supply; the other countries owe what slender foothold they have in the market to ingenuity, tact, and cheapness. When Lancashire and Yorkshire, Staffordshire, and South Wales agree to work twelve hours a da}- for 60 per cent, less than current wages, Ihere will be only two competitors for custom here — John Bull and his American cousin. But is the sacrifice called for? GERMAN TRADE. Germany — cheap-labored, long-honred Germany — seizes perhaps 6 per cent, of the business, not more. It is worth explaining how she got even so much, and why she ought to be deprived even of that share in the future. There was a time before 1899 when the rulers at Pretoria strove by every means, open and imdergrourd, to foster trade with Germany. * » * it was an artificial growth, fertilized by orders given with a special object from Pretoria and Johannesburg; its roots had no grip of the soil, and they have withered at once now the cultivator has gone and left them to the influence of crowding competition and fair play. Ironware. — In enameled ironware, so vastly used in this country, where crockery cannot be trusted to stand rough handling, Germany once held the field. Then the United States came in with a better article and knocked her out. Then the Staffordshire and Warwickshire maker introduced one better and heavier, and now, as the manager of Holt & Holt told me, buyers find more value in the 3s, (73 cents) article (British) than in the half crown (60 cents) American. Crockery. — Makers in the potteries should put their heads together and create a cheap and good-looking china tea or coffee set, because that is the only line in earthenware in which the foreigner (German and Austrian) "has a show." Neatly packed in a gaudy box, these cups and saucers have a charm for the Dutch vrow in town on a buying expedition. The famihar "blue-lined" dinner ware and "white and gold" crockery are all British, and have steadily improved their position for ten years past. Clothing.— There is an illimitable market in the Transvaal and the Orange River Colony for men's cheap ready-made clothing. The Boer does Britain r,eaire«'l ment is to grant the new line an annual subsidy of $145,995. The Consul- I'>»<' »f General of the Argentine Republic at Cape Town, it is reported, has com- Stoaiin»rs pleted arrangements for a line of steamers from the River Plata to South Africa, with a view to supplying this colony with Argentine meats and other produce. The first vessel, the Pampa, was scheduled to leave Buenos Aires April 30, with 1,000 head of cattle and 3,000 tons of other cargo. Thereafter, monthly trips will be made. The steamers are owned and operated by the Argentine Government, and will undoubtedly prove at first an unremunera- tive venture, but the cattle and grain exporters will enjoy the benefits of a good market. The United States ships to this part of the world more than twice as much goods as any other country, except Great Britain. We have been sending to South Africa an immense amount of the material required to carry on the war, and this has accounted for much of our increased trade —