CHAPTER XVII

TRADE CONDITIONS IN SOUTH AMERICA

Walking along the extensive docks at Buenos Aires, and going through the

immense warehouses which extended one after another along those docks,

I was impressed with the small proportion of the immense traffic coming

into this port that belonged to the United States. It was an object

lesson far more impressive than the perusal of statistics. Section after

section would be visited without a single package bearing the name of one

of our manufacturers, while great boxes and bales with “Hamburg” stamped

upon them, French boxes of both wet and dry goods, labelled “fragile,”

and English shipments were piled clear up to the ceiling. The question

“why is this condition?” arose in my mind, and set me upon inquiry.

Are North American manufactures not adapted to the needs of our fellow

Americans? Can it be that our goods are not fully known or appreciated

beneath the Southern Cross?

It was just at this time that the naval commission of Argentina awarded

the contract for the two battleships to United States builders, after

a fierce competition from the ship-building firms of five nations, and

one in which even the diplomatic representatives of more than one nation

became involved. This act brought out a great deal of favourable comment

upon the United States from the leading journals of Buenos Aires. A

reporter of _La Prensa_, perhaps the most influential daily in that

republic, came to interview me, and I took the occasion to say that

the United States had entered upon an era of commercial conquest, and

hereafter must be reckoned with. A number of Argentinians whom I met

afterwards commented on the subject, and everywhere the encouraging words

were heard: “We will welcome you; indeed we have wondered why it was not

done long ago.” This convinces me that no prejudice exists among the

Latin-Americans against their fellow Americans of North America.

It may be that the manufacturers of the United States have been a

little ignorant of conditions in South America. A little ignorance is

excusable. As the United States has not been a colonizing nation, having

undeveloped lands and resources at home for its surplus population,

there has not been the intercourse between North and South America

that there has been between South America and Europe. But there is one

characteristic which I noticed everywhere and greatly admired, and

that is that South Americans of every country are satisfied only with

the “best.” The “just as good” argument does not satisfy. When once

convinced that the manufacturer of the United States is putting out a

better article, it will be bought. The manufacturer of that country has

oftentimes been at a disadvantage because the importing houses are mostly

of European nationality, and for that reason prejudicially inclined

towards their fellow-countrymen. North American-made goods have forged

ahead simply and solely upon their own intrinsic merit.

“All of our printing machinery is of North American make, as is almost

everything in the establishment, except the type,” said the manager

of _La Prensa_, as he courteously and with justifiable pride showed

me through their fine office building with its humanitarian and

sociological features. “We have found those goods to be the best.

Furthermore, our presses, as you will see, are the North American

make; and not from the branch factory in England.” And so I found as

we went through these offices, being taken from one floor to another

on an American elevator, that the “copy” was being written up on

typewriters, set up on linotype machines, and printed upon presses, all

of United States manufacture; the checks to the reporters were signed by

fountain-pens and the cash received over the counters was rung up on cash

registers from the same land.

“Where do you purchase your paper?”

He answered: “We buy some of it in the United States but most of it in

Germany. We prefer that made in North America, but it is so carelessly

packed that we always figure on a ten per cent. loss. The German

manufacturers carefully surround the rolls with boards to prevent the

paper from damage, while the North American paper is simply wrapped with

a little heavier paper, which tears or becomes water soaked, and damage

results. A short time ago we returned nearly nine hundred bales to the

manufacturers because of the damaged condition in which it was received.”

[Illustration: ROLLS OF PAPER FROM GERMANY]

“How does American machinery sell?” I asked of an importing merchant in

Buenos Aires, who represented a few American manufacturers.

“Very well indeed, for the people generally like them. But there is one

thing your North American manufacturers must learn, and that is to be

very careful in putting every necessary part in the shipment. Several

times we have received engines, or other complicated machinery, and when

it was put together some part would be missing. As it was impossible to

get that part in less than three or four months, the customer lost a

season’s business, and his friends bought English machinery because there

was no danger of that same trouble.”

It would be possible to relate numerous other instances of personal

experiences, all of which would be of similar tenor to those herewith

given. It is humiliating to an American to travel throughout the length

and breadth of South America and see the trade which legitimately

belongs to us slipping away to Europe, when some of our own factories in

that line are idle because of lack of orders. It leads one to ask the

questions: “What is the matter with the American business man? What is

the matter with the American manufacturer?”

The South American field is an extensive one, and it is a discriminating

one. The idea that anything is good enough for that continent has been

exploded. Buenos Aires, for instance, is a live, hustling up-to-date

metropolis. The people have money and they spend it freely. What they buy

they want of the very best, and nothing is too good for them. It might

also be added that nothing is too expensive for them, as they are used to

paying high prices, and money seems to be of little moment when once the

desire for the article exists. So it is not a cheap or a low-price market

that awaits the American merchant.

Argentina is essentially British in her sympathies. That is but natural,

for England owns her railroads, public improvements and government

bonds. Almost two billion dollars of British gold is invested in that

republic, and perhaps fifty thousand of her subjects dwell there. There

is not a boat that sails for Buenos Aires from an English port which

does not carry some young English boys to that city, who expect to enter

commercial life there. It is only natural that this should create a

preference for English-made goods, for the Englishman always carries his

atmosphere with him as well as his ideas of taste and style. And yet

German houses have aggressively entered this field in the past decade and

have made terrific inroads on English trade. The Germans have studied the

markets; they aim to cater to its demands; they grant the terms asked by

the merchants, and do anything to secure the trade—and they generally get

it.

One noticeable feature of the German commercial invasion is its

imitation, and a desire to furnish “similar” articles at a cheaper price.

As a prominent man told me: “Their goods are worth no more than you pay

for them, and they are bound to lose out in the long run.” It is this

commercial rivalry that has caused the intense feeling between Germany

and England, for the German manufacturer has been somewhat unscrupulous

in his methods. If a manufacturer in the United States or England has

succeeded in evolving some new and valuable contrivance, it will not

be long until a German imitation will be on the market, and bearing an

English name. It is well known that the North American manufacturers

have evolved the best and practically only successful typewriters, cash

registers and computing machines. Within the last year or two, however,

German imitations have appeared in all markets. The machines in some

instances have such a wholly misleading name as “Columbia,” showing

the plain intention of deception. In these lines their methods have

had little effect. One can hardly go into an office anywhere in South

America without seeing one or more typewriters with familiar labels, for

a half dozen or more manufacturers are working in that field, and nearly

every store has from one to a half dozen cash registers of one or two

North American makes. “We are bringing them in by the shipload,” said an

agent in Buenos Aires, who handled both lines, and there was not much

exaggeration in the statement.

It is in the practical and useful things that the genius of the United

States has been most manifest. A great undeveloped country rich in

natural resources stirred the inventive genius of the people, and the

result has been a continual increase in time-saving and labour-saving

appliances of all kinds. These same articles are equally adapted to

conditions all over South America. In some places these articles are

known and appreciated; in others they are still unknown. No manufacturers

have evolved farming machinery of all kinds so well adapted to conditions

in South America as those of the United States.

American manufacturers look with longing eyes towards the Orient as a

promising field for expansion. It will be many years before China, for

instance, will be a great importer of manufactured goods, because of the

extreme poverty of the people and the consequent low purchasing power

of the masses. The imports of that country, with its teeming population

of four hundred millions, for the past year were about $333,000,000,

an average of less than one dollar per capita. It will be many years

before that percentage will greatly increase, because the rise in the

standard of wages will be very slow owing to the abundance of labourers.

Furthermore, as soon as trade has once been established, the low wages

will induce manufacturers to establish factories on Chinese soil so that

the cost of production will be decreased. Japan is, and will always be,

a formidable competitor in the Orient, because of her ingenuity and

similarly low wage scale.

South America, on the other hand, is not and will not be for a long time,

if ever, a manufacturing country. Brazil has encouraged some lines of

manufactures, because of her extensive water power, but still is and will

ever remain an importing nation. Argentina, Uruguay and Paraguay have

little available water power and scarcely any coal. Chile, Peru and all

the other republics of South America remain importing nations. In none of

these countries, except Chile, has coal been found in large quantities,

and millions upon millions of tons are imported each year from Europe and

Australia. The matter of fuel alone will always deter manufacturing in

South America.

Let us glance for a moment at the purchasing power of these republics.

Argentina, although not so populous as the immense republic of Brazil,

easily stands at the head of the list. During the year 1909 the total

foreign trade of the Argentine Republic was valued at $700,106,623, of

which $302,756,095 was imports. This was an average of almost $108.00

for each man, woman and child in the nation, and an importation of more

than $46.00 per capita. Thus this one republic, with a population of

less than seven million, imports almost as much as China with more than

fifty times the population. In the last decade the imports of Argentina

have increased one hundred and fifty-four per cent., an increase exceeded

only by Canada. She now ranks thirteenth in total imports and sixth in

per capita imports. Those nations, such as England and Holland, which

exceed in per capita imports, are large importers of raw materials and

not manufactured goods, as is the case with Argentina. Furthermore, the

population of Argentina is increasing rapidly, both by natural increase

and immigration. There are no idle men in the country, as every able

bodied man seems to be able to secure employment. Wages are about as high

as in the United States, and the cost of living higher. The people spend

their money freely, and the importing houses do an immense business which

is increasing each year.

Brazil will one day be one of the great powers of the world, for she

contains within her borders the greatest amount of undeveloped, fertile

land in the world. The United States, exclusive of Alaska and the island

possessions, could be set inside the territorial limits of Brazil, and

leave a state as large as Texas on the outside. The Brazilian government

estimates the population at a little more than twenty million, but

it would probably be better to place the number at eighteen million.

Brazil has fostered some lines of industry, especially the manufacture

of cotton goods, where water power is an invaluable asset, but most of

the goods are imported. The purchasing power of the people is not as

great as in Argentina, because there are several millions of negroes and

Indians included in the population. The total imports for the year 1909

were $179,690,125. This would be at the rate of ten dollars per capita,

or ten times that of China. In other words, the imports of Brazil, with

her eighteen million population, is equal to that of half the Chinese

Empire. If the coffee situation improves there will be a great increase

in Brazilian imports, for many improvements are withheld in the coffee

regions at the present time on that account.

Chile, that long, narrow strip of land, whose two hundred and ninety-one

thousand and five hundred square miles stretch over thirty-eight degrees

of latitude, is well worthy of consideration. In 1909 the imports of

this republic were $94,349,795. With a population of less than four

million, this makes a per capita importation of twenty-five dollars.

Peru, with a slightly greater population, but a larger number of Indians

who are not purchasers, imported in the same year about $25,000,000.

Uruguay ranks next to Argentina in imports in proportion to population.

Larger than New York and West Virginia combined, this republic, whose

physical characteristics and agricultural resources are very similar

to its neighbour across the La Plata, has a population of one million

one hundred thousand. It is a great stock country, and ninety-four

per cent. of its $37,000,000 exports for last year were hides, frozen

meat, jerked beef, meat-extracts and tallow. Its imports amounted to

$35,000,000 in round numbers, making the comparatively small republic

well worth consideration by the exporter. Venezuela imports will

average $10,000,000, Bolivia $16,000,000, Ecuador $7,000,000, Columbia

$12,000,000 and Paraguay about $4,000,000.

These figures are eloquent in themselves. They bespeak great

possibilities of trade among our South American neighbours. Of the total

imports of Argentina, during the year 1909, the United States sent

$43,068,829. For the last two years the percentage has shown a gradual

increase, as a few lines of American goods have been systematically

pushed. In percentage of increase over the preceding year the United

States is ahead of the other commercial nations. Specialties such as

typewriters, photographic cameras, firearms, elevators, phonographs,

toilet and medical articles, and petroleum products, have made their

market, but it is the larger competitive field that needs attention. In

this class are included motors of all kinds, electrical appliances, steel

in every form, railway and tramway equipment, and a thousand and one

things made by manufacturers of the United States, which are always equal

to and oftentimes superior to anything of their kind made elsewhere.

We purchase more than twice as much from Brazil as any other nation, more

than half the total, and sell that country less than half as much as

Great Britain and less than Germany. We sell more to Argentina than we

purchase from her, but Great Britain sells almost three times as much,

and our percentage is only fourteen per cent. of the whole, with Germany

still in the lead and France not far behind. We purchase nearly twice

as much from Chile as Germany, and more than twice as much as Great

Britain, and yet the latter country sells Chile more than twice as much

as we do and Germany almost half as much again. And so the figures might

be given for the other countries, which would show about the same ratios,

and which make the American travelling through those countries lose some

of his egotism.

Here are a few of the obstacles encountered: the leading banks are either

British, German or Italian; the importing merchants are of the same

nationality, and there is quicker transportation because of the numerous

steamship lines running to European ports, although there are good

steamers running direct from New York to the ports on the east coast. And

the following are a few of the remedies suggested: an American bank would

greatly facilitate business, as it would aid in exchange and the handling

of credits; American manufacturers should study the markets and send

salesmen who understand the languages, people and customs; great care

in packing goods for South America should be exercised; fourthly, and

lastly, establish independent houses with hustling Americans in charge,

and not trust to foreign representatives who have a natural predilection

for things made in their own land. The shipping question will solve

itself, for boats will be run whenever business demands them. A little

attention to these principles and suggestions will help in solving the

question of American trade in South America. They are Americans, also,

and pride themselves on that fact. They rather resent our assumption

of the name “Americans,” and insist that we should use the term “North

Americans.” They are the “South Americans.” Then, as they say, as we are

all “Americans,” let the cry be “America for the Americans.”

Argentina and Her People of To-day An account of the customs, characteristics, amusements, history and advancement of the Argentinians, and the development and resources of their country · 第 17 / 18 章