Then he produced the record of the machines he had sold to the

government. Each one saved the labour of eight persons and considerable

office space. This made a distinct impression and the company got

permission to import two hundred tons of their product. But not even an

application for more can be filed until the first of next year. Only the

dire necessity for this article, coupled with the fact that it is

without British competition, got it over.

I cite this incident to show what many Americans in England believe to

be one of the real reasons behind the prohibition, which, summed up, is

simply this: England is trying to keep out everything that competes with

anything that is made in England or that can be made in England!

For some time after the war began our motor cars went in free. Then

followed an ad-valorem duty of thirty-three and a third per cent.

Despite this handicap, agents were able to sell American machines, which

were both popular and serviceable. The tariff was imposed ostensibly to

cut down imports, but mainly to please the British motor manufacturers,

who claimed that the surrender of their factories to the government for

making munitions left the automobile market at the mercy of the American

product, which meant loss of goodwill.

Subsequently a complete embargo was placed on the entry of American

pleasure cars and the business practically came to a standstill. What is

the result? Let the agent of a well-known popular-priced American car

tell his story.

"Before the war and up to the time of the embargo," he said, "I was

selling a good many American automobiles. With the embargo on cars also

came a prohibition of spare parts. It was absolutely impossible to get

any into the country. Many of my customers wanted replacements, and,

when I could not furnish them, they abandoned the cars I sold them and

bought English-made machines whose parts could be replaced."

All through the motor business in England I found a strong disposition

on the part of the British manufacturer and dealer to create a market

for his own car as soon as the war is over. Some even talked of a large

output of low-priced machines to meet the competition of the familiar

car that put the automobile joke on the map. The only American comeback

to this growing prejudice is to build factories or assembling plants

within the British Isles. This will save excessive freight rates, keep

down the costly-tariff "overhead," and get the benefit of all the

goodwill accruing from the employment of British labour.

A by-product of British exclusion is the inauguration of a

Made-in-England campaign. Buy a hat in Regent Street or Oxford Street

and you see stamped on the inside band the words, "British Manufacture."

This English crusade is more likely to succeed than our Made-in-U.S.A.

attempt, for the simple reason that the government is squarely behind

it.

This same spirit dominates newspaper publicity. You find a British

fountain pen glowingly proclaimed in a big display advertisement,

illustrated with the picture of men trundling boxes of gold down to a

waiting steamer. Alongside are these words:

"The man who buys a foreign-made fountain pen is paying away gold, even

if the money he hands across the counter is a Treasury note. The British

shop may get the paper; the foreign manufacturer gets gold for all the

pens he sends over here. What is the sense of carrying an empty

sovereign-purse in one pocket if you put a foreign-made fountain pen in

another?"

Behind all this British exclusion is an old prejudice against our wares.

There has never been any secret about it. I found a large body of

opinion headed by brilliant men who have bidden farewell to the

Hands-Across-the-Sea sentiment; who have little faith in the theory that

blood is thicker than water when it comes to a keen commercial clash.

What of the human element behind the whole British awakening? Will

organised labour, an ancient sore on the British body, rise up and

complicate these well-laid schemes for economic expansion? As with the

question of practicability of the Paris Pact, there is a wide difference

of opinion.

On one hand, you find the air full of the menace of post-war

unemployment and the problem of replacing the woman worker by the man

who went away to fight. To offset this, however, there will be the

undoubted scarcity of male help due to battle or disease, and the

inevitable emigration of the soldier, desirous of a free and open life,

to the Colonies.

On the other hand, there is the conviction that unrestricted output,

having registered its golden returns, will be the rule, not the

exception, among the English artisans. England's frenzied desire for

economic authority proclaims a job for everybody.

I asked a member of the British Cabinet, a man perhaps better qualified

than any other in England to speak on this subject, to sum up the whole

after-war labour situation, as he saw it, and his epigrammatic reply

was:

"After the war capital will be ungrudging in its remuneration to labour;

and labour, in turn, must be ungrudging in its output."

No one doubts that after the war the British worker will have his full

share of profits. As one large manufacturer told me: "We have so gotten

into the habit of turning our profits over to the government that it

will be easy to divide with our employees." Here may be the panacea for

the whole English labour ill.

But, whatever may be the readjustment of this labour problem, one thing

is certain: Peace will find a disciplined England. The five million men,

trained to military service, will dominate the new English life; and

this means that it will be orderly and productive.

With this discipline will come a democracy--social and industrial--such

as England has never known. The comradeship between peer and valet,

master and man, born of common danger under fire, will find renewal, in

part at least, when they go back to their respective tasks. This wiping

out of caste in shop, mill and counting room will likewise remove one of

the old barriers to the larger prosperity.

England wants the closest trade relations with her Dominions. But will

the Colonies accept the idea of a fiscal union of empire, which

practically means intercolonial free trade? Or will they want to

protect their own industries, even against the Mother Country? Like the

French, they are willing to risk life and limb for a cause, but they

likewise want to guard jealously their purse and products. They have not

forgotten the click when Churchill locked the home door against them.

This leads to the question that is agitating all England: Will peace

bring tariff reform? Both English and American economic destiny will be

affected by the decision, whatever it may be.

Canvass England and you encounter a widespread movement that means, as

the advocates see it, a broadening of the home market; security for the

infant "key" industries; a safeguard for British labour--in short, the

end of the old inequality of a Free England against a Protected Germany.

Protection in England, hitched to a world-wide freeze-out business

campaign against Germany, would doubtless divert a whole new

international discount business to New York. German exporters under

these circumstances might refuse payments from their other customers on

London, demanding bills on New York instead. To hold this business,

however, we should need direct banking and cable connections with all

the grand divisions of trade, adequate sea-carrying power, dollar

credits, and a government friendly to business.

Then, there is the middle English ground which demands a "tariff for

revenue only," and subsidy--not protection--for the new industries.

Combating all this is the dyed-in-the-bone free trader, who points to

the fact that free trade made England the richest of the Allies and gave

her control of the sea. "How can a nation that is one huge seaport, and

which lives by foreign trade, ever be a protectionist?" he asks.

If he has his way we shall have to struggle harder for our share of

universal business. More than this, it will block what is likely to be

one of Germany's schemes for rehabilitation. Here is the possible

procedure:

Germany's financial position after the war will be badly strained. She

can be saved only by an effective export policy. To do this she must

seek all possible neutral markets; and to get them quickly she will

offer broad--even extravagant--reciprocity programmes. They may conflict

with the proposed Franco-British programmes of protection and embargo

against neutral trade interests.

But if the Franco-British programme leaves the allied markets for goods

and money open, as before the war, the German reciprocity scheme will

fail of its effect by the sheer force of natural competition. Hence

England can throttle the re-establishment of German credit by a free and

liberal trade policy, open to all the world. Though poor, after the war

she can actually be stronger, in view of her great army and navy, her

new individual efficiency, and renewed commercial vitality.

Will all this keep Germany out? There are many people, even in England,

who think not. Already Germans by the thousands are becoming naturalised

citizens of Holland, Spain, Switzerland and Denmark; building factories

there and shipping the product into the enemy strongholds, stamped with

neutral names. Much of the "Swiss" chocolate you buy in Paris was made

by Teutonic hands.

A French manufacturer who bought a grinding machine in Zurich the other

day thought it looked familiar; and when he compared it with a picture

in a German catalogue he found it was the identical article, made in

Germany, which had been offered to him by a Frankfort firm six months

before the war began. Only certificates of origin will bar out the

German product.

Amid the hatred that the war has engendered, England wonders at the

price she will pay for German exclusion. Men like Sir John Simon

solemnly assert in Parliament: "In proportion as we divert German trade

after the war we throw the trade of the Central European Powers more and

more into the hands of America, with the result that, unhappily, if we

became involved in another European war we should not be able to count

on the friendly neutrality which America has shown in this war." Others

inquire: "What of the future trade of India, the great part of whose

cotton crop before the war went to Central Europe?"

Sober-minded and farseeing men, in England and elsewhere, believe that,

despite the ravage of her men and trade, Germany will come back

commercially.

"You must not forget," said one of them, "that, no matter how badly she

is beaten, Germany will still be a going business concern. She will have

an immense plant; her genius of efficiency and organisation cannot be

killed. Through her magnificent industrial education system she has

trained millions of boys to take the vacant stools and stands in shop

and mill. England and France have no such reserves. Besides, if we

pauperise Germany, no one--not even Belgium--will get a pound of

indemnity."

You have now seen the moving picture of half a world in process of

significant change, wrought by clash of arms, and facing a complete

economic readjustment with peace. Whether the Paris Pact is practical or

visionary, no matter if England is free trade or protectionist,

regardless of Germany's ability to find herself industrially at once,

one thing we do know--the end of the war will find the Empire of World

Trade molten and in the remaking.

Fresh paths must be shaped; the race will be to the best-prepared.

Whatever our position, be it neutral or belligerent--and no man can

tell which now--we shall face a supreme test of our resource and our

readiness. What can we do to meet this crisis, which will mean continued

prosperity or costly reaction?

Many things; but they must be done now, when immunity from actual

conflict gives us a merciful leeway. More than ever before, we shall

face united business fronts. Therefore, co-operation among competitors

is necessary to a successful foreign trade.

Since the coming trade war will rage round tariffs, it will be well to

heed the resolution recently adopted by the National Foreign-Trade

Council: "That the American tariff system, whatever be its underlying

principle, shall possess adequate resources for the encouragement of the

foreign trade of the United States by commercial treaties or agreements,

or executive concessions within defined limits, and for its protection

from undue discrimination in the markets of the world." In short, we

must have a flexible and bargaining tariff.

We must train our men for foreign-trade fields; they must know alien

languages as well as needs; we must perfect processes of packing that

will deliver goods intact. With these goods, we must sell goodwill

through service and contact. Secondhand-business getting will have no

place in the new rivalry.

Our money, too, must go adventuring, and courage must combine with

capital. Our dawning international banking system, which first saw the

light in South America, needs world-wide expansion. Dollar credit will

be a world necessity if we capitalise the opportunity that peace may

bring us. No financial aid should be so welcome as ours, because it is

nonpolitical.

This trade machinery will be inadequate if we have no merchant marine.

Chronic failure to heed the warning for a national shipping will make

our dependence upon foreign holds both acute and costly.

Our trade needs more than a government professedly friendly to business.

It requires a definite co-operation with business. An advisory board of

practical men of commercial affairs would be of more constructive

benefit to the country than all the lawmakers combined.

Here, then, is the protection against organised European economic

aggression, the armour for the inevitable trade conflict. Unless we gird

it on, we shall be onlookers instead of participants.

III--_American Business in France_

Two Americans met by chance one day last summer at a little table in

front of the Café de la Paix in Paris. One had arrived only a month

before; the other was an old resident in France. After the fashion of

their kind they became acquainted and began to talk. Before them passed

a picturesque parade, brilliant with the uniforms of half a dozen

nations, and streaked with the symbols of mourning that attested to the

ravage of war.

"There is something wrong with these Frenchmen," said the first

American.

"How is that?" asked his companion.

"It's like this," was the reply. "I have sold goods from the Atlantic to

the Pacific, and yet I can get nowhere over here. I give these fellows

the swiftest line of selling talk in the world and it makes no

impression."

"How well do you speak French?" queried his new-found acquaintance.

"Not at all."

"Have you studied the ways and needs of the Frenchman?"

"Of course not. I've got something they want and they ought to take it."

The man who had long lived in France was silent for a moment. Then he

said:

"The fault is not with the Frenchman, my friend. Think it over." He did,

and with reflection he changed his method. He put a curb on strenuosity;

started to study the French temperament; he began to see why he had not

succeeded.

This incident illumines one of the strangest and most inconsistent

situations in our foreign trade. By a curious irony we have failed to

realise our commercial destiny in the one Allied Nation where real

respect and affection for us remain. France--a sister Republic--is bound

to us by sentimental ties and the kinship of a common struggle for

liberty. Her people are warm-hearted and generous and _want_ to do

business with us.

Yet, as long and costly experience shows, we have almost gone out of our

way to clash with their customs and misunderstand their motives. In

short, we have neglected a great opportunity to develop a permanent and

worth-while export business with them. It was bad enough before the war.

Events since the outbreak of the monster conflict have emphasised it

more keenly.

* * * * *

Why have Americans failed so signally in France? There are many reasons.

First of all, their whole system of selling has been wrong.

For years many of our manufacturers were represented in Paris and

elsewhere in France by German agents, who also represented producers in

their own country. The energetic Teuton did not hesitate to install an

American machine or a line of American goods. But what happened? When

the machine part wore out or the stock of goods was exhausted, there was

seldom any American product on hand to meet the swift and sometime

impatient demand for replacement or renewal. By a strange "coincidence"

there was always an abundant supply of German material available. The

German salesman always saw to that. Necessity knows no nationality. The

result invariably was that German output supplanted the American. The

Frenchman did not want to be caught the second time.

This prompt renewal created an immense goodwill for German goods. Right

here is one of the first big lessons for the American exporter to learn,

no matter what country he expects to sell in. It lies in keeping goods

"on the shelf," and being able to meet emergency demand.

The Frenchman in trade is a sort of Missourian. He must be "shown." He

shies at samples; distrusts drawings. He likes to go into a warehouse

and look over stocks; it gives him satisfaction to pick and choose. He

is the most fastidious buyer in the world and he likes to do things his

own way. Any attempt to ram foreign methods--either in buying or

selling--down his sensitive throat is bound to react.

Here is a case in point: The General Representative in France of a large

American manufacturing concern decided to engage some French salesmen.

He was a shark on business system; he fairly oozed with "scientific

salesmanship"; he decided to gird his Gallic emissaries with the most

improved American selling methods. So he prepared an elaborate "What I

did" schedule for them. Into it was to be written every evening the

complete record of the business day.

When he handed one of these blanks to his leading French salesman, that

gentleman shrugged his shoulders and said:

"It eez imposseeble."

When the American became insistent all the French salesmen resigned in a

body. This objection was purely temperamental. If there is one thing

above all others that puts a Frenchman into panic it is publicity of his

personal affairs. He believes that the greatest crime in the world is to

be found out, whether in business or in love. There was nothing perhaps

to hide in a biography of his daily work, but it was the wrong tack to

take.

In the same way militant and masterful salesmanship also fails. A man

may be a crack seller in Kansas City, Denver, and all points West, but

he finds to his sorrow that his dynamic process goes straight over the

head of a Frenchman. He refuses to be driven; he wants time for mature

reflection and an opportunity to talk the thing over with his wife.

This irritating attempt to force uncongenial methods on French buyers is

duplicated in a corresponding lack of plain everyday intelligence in

meeting the simplest French requirements.

Indeed, the omissions of Americans are wellnigh incredible. Take the

matter of postage to France. The head of a great French concern made

this statement to me in sober earnestness: "Won't you be good enough to

beg American manufacturers to put their office boys through a course of

instruction in postal rates between Europe and the United States?"

When I asked him the reason he said: "We sometimes get twenty letters

from America in one mail and each comes under a two cent stamp. This has

been going on for years despite our repeated protest about it. Some

months my firm was required to pay from ten to fifteen dollars in excess

postage."

Now the amount of money involved in this transaction is the slightest

feature: it is the chronic laxity and carelessness of the American

business man that gets on the Frenchman's nerve.

Here is another case in point: A well known French firm has been writing

weekly letters for the past eighteen months to a New England factory

trying to persuade the Manager to mark his export cases with a stencil

plate and in ink rather than with a heavy lead pencil, as the latter

marking is almost obliterated by the time the shipment arrives at Havre.

In fact, this French firm went to the extent of sending a stencil and

brush to New England to be used in marking the firm's cases. But the old

pencil habit is too strong and a weekly hunt has to be instituted on the

French docks for odd cases containing valuable consignments of machine

tools. Vexatious delays result. It is just one more nail that the

heedless American manufacturer drives into the coffin of his French

business.

These incidents and many more that I could cite, are merely the

approach, however, to a succession of mistakes that make you wonder if

so-called Yankee enterprise gets stage fright or "cold feet" as soon as

it comes in contact with French commercial possibilities. Let me now

tell the prize story of neglected trade opportunity.

Last spring the American Commercial Attache in Paris made a speech at a

dinner in Philadelphia. He painted such a glowing picture of trade

prospects in France that the head of one of the greatest hardware

concerns in America, who happened to be present, came to him afterwards

with enthusiasm and said: "We want to get some of that foreign business

you talked about and we will do everything in our power to land it. Help

us if you can."

The Attache promised that he would and returned to his post in Paris. He

studied the hardware situation and found a tremendous need for our

goods. He was about to make a report to the hardware manufacturer when

an alert upstanding young American breezed into his office and said:

"I have been looking into the hardware situation here and I find that

there is a big chance for us. In fact, I have already booked some fat

orders. Will you put me in touch with the right people in America to

handle the business?"

"Certainly," replied the Attache. "I know just the firm you are looking

for." He recalled the enthusiastic remarks of the man who came to him

after the Philadelphia speech, so he said: "Write to the Blank Hardware

Company in ----, and I am sure you will get quick action."

"No," said the enterprising young American, "I will cable." He

immediately got off a long wire telling what orders he had and giving

gilt edge banking references.

Quite naturally he expected a cable reply, but he was too optimistic.

Day after day passed amid a great silence from America. At the end of

two weeks he received a _letter_ from the Export Manager of the firm who

said, among other things: "We are not prepared to quote any prices for

the French trade now. We have decided to wait with any extension of our

foreign business until after the war. Meanwhile you might call on our

agent in Paris who may be able to do something for you."

The young American dashed up to the agent's warehouse. The agent was an

old man becalmed in a sea of empty space. All his young men were off at

the front; a few grey beards aided by some women comprised his working

staff.

"I have no American hardware in stock," he said, "but I may be able to

get you some English or Swiss goods." This did not appeal to the young

American. He is now making a study of Russian finance.

Full brother to this episode is the experience of another American in

Paris who found out that there was great need among French women for

curling irons. Despite war, sacrifice and sudden death, the French woman

is determined to look her best. Besides, she is earning more money than

ever before and buying more luxuries. Knowing these facts, the Yankee

sent the following cable to a well known concern in the Middle West:

"Rush fifty thousand dollars' worth of curling irons. Cable acceptance."

He also cabled his financial references which would have started a bank.

He, too, was doomed to disappointment. After a fortnight came the usual

letter from America containing the now familiar phrase: "See Blank

Blank, our Paris representative. He may be able to take care of you."

Manfully he went to see Monsieur Blank Blank, who not only had no

curling irons but refused to display the slightest interest in them.

The War After the War · 第 2 / 11 段