Still another American took an order for some kid skins, intended for

the manufacture of fine shoe uppers. By the terms of the agreement they

were to be three feet in width. The money for them amounting to $30,000

was deposited in a New York bank before shipment.

When the skins reached Paris they were found to be heavy, coarse leather

and measuring five feet in width. They were absolutely useless for the

desired purpose. The average French buyer, however, is not a welcher. He

accepted the undesirable stuff, but with a comment in French that,

translated into the frankest American, means, "Never again!"

All this oversight is aided and abetted by a twin evil, a lack of

knowledge of the French language. Here you touch one of the chief

obstacles in the way of our foreign business expansion everywhere. It

has put the American salesman at the mercy of the interpreter, and since

most interpreters are crooks, you can readily see the handicap under

which the helpless commercial scout labours. A concrete episode will

show what it costs:

A certain American firm, desirous of establishing a more or less

permanent connection in France, sent over one of its principal officers.

This man could not speak a word of French, so he secured the services of

a so-called "interpreter guide." It was proposed to select a

representative for the company from among a number of firms in a certain

large French seaport. The firm chosen was to receive and pay for

consignments through a local bank and act generally for the American

company.

Friend "interpreter guide" said he knew all the big business houses in

the city, so he selected a firm which the American accepted without

making the slightest investigation. A bank agreed to take care of the

shipments and the whole transaction was quickly concluded. The American

grabbed the papers in the case (and I might add without the formality of

having them examined by a third party) and left France immensely

impressed with the ease and swiftness with which business could be

transacted with that country.

But there was an unexpected and unfortunate sequel to this performance.

A few months later another officer of this American company came

post-haste to France to straighten out an ugly tangle. It developed that

the French firm chosen by the "interpreter guide" was not of the highest

standing: that the interpreter, for reasons and profits best known to

himself, had entirely misrepresented the conversation, that instead of

paying four per cent for services, the American firm was really paying

about ten. The whole transaction had to be called off and a new one

instituted at considerable expense of time and money.

Another American came to Paris without knowing the language, used an

interpreter every day for nine weeks, and was unable to place a single

order. Yet in this time he spent enough money on his language

intermediary to pay the rent of a suitable office in Paris for a whole

year.

The dependence of Americans with important interests or commissions upon

interpreters is well nigh incredible. On the steamer that took me to

France last summer was the new Continental Manager of a large American

manufacturing company. I assumed, of course, that he could speak French.

A few days after I arrived in Paris I met him in the Boulevard des

Italiens in the grip of a five franc a day interpreter. He told me with

great enthusiasm that an interpreter was "the greatest institution in

the world." In six months he will probably reverse his opinion.

The lesson of this lack of knowledge of French as applied to

salesmanship is this: That while the average Frenchman is greatly

flattered when you tell him that his English is good, he prefers to talk

business in his own vernacular. He thinks and calculates better in

French. Frequently when you engage him in conversation in English and

the question of business comes up, you find that he instinctively lapses

into his mother tongue.

I was talking one day with Monsieur Ribot, the French Minister of

Finance, whose English is almost above reproach, and who maintained the

integrity of his English through a long conversation. But the moment I

asked him a question about the proposed bond issue, he shifted into

French and kept that key until every financial rock had been passed.

In short, you find that if you want to do business in France, you must

know the French language. It is one of the keys to an understanding of

the French temperament.

Even when Americans do become energetic in France, they sometimes fail

to fortify themselves with important facts before entering into hard and

fast transactions. As usual, they pay dearly for such omissions. This

brings us to what might be called The Great American Deluge which

overwhelmed not a few Yankee pocketbooks and left their owners sadder

and saner.

Fully to understand this series of events, you must know that since the

beginning of the war the question of an adequate French coal supply has

been acute. Indeed, for a while the country faced a real crisis. Many of

her mines are in the hands of the Germans and she was forced to turn to

England for help. Not only has the English price risen, but to it must

be added the high cost of transportation, the heavy war risk, and all

those other details that enter into such negotiations.

France had to have coal and various enterprising Americans got on the

job. At least, they thought they were enterprising. Before they got

through, they wished that they had not been so headlong as the following

tale, now to be unfolded, will indicate.

A group of New York men made a contract to deliver three shiploads of

coal at Bordeaux at a certain price. _After_ they had signed the

contract, freight rates from Baltimore to the French port almost

doubled. This was the first of their troubles. When their vessel finally

reached Bordeaux, the dock was so crowded with ships unloading war

munitions that they could not get pier space. In France demurrage begins

the moment a ship stops outside of port. The net result was that these

vessels were held up for nearly two weeks and the high price of

transportation coupled with the very large demurrage practically wiped

out all the profits.

Another group of Americans made a contract to deliver coal to a French

railway "subject to call." Without taking the trouble to inquire just

what "subject to call" meant in France, they signed and sealed the

bargain. Then they discovered that the railroad wanted the coal

delivered in irregular instalments. Meanwhile the consignors had to

store the coal in French yards where space to-day is almost as valuable

as a corner lot on Broadway. They were glad to pay a cash bonus and

escape with their skin.

Still another group made a contract with the Paris Gas Company for a

large quantity of coal. They discovered later that the company expected

the coal to be delivered to their bins in Paris.

"But the American plan is to sell coal f.o.b. Norfolk," said the

spokesman.

"We are sorry," replied the Frenchmen, "but the coal must be delivered

to us in Paris. The English have been doing it for forty years, and if

you expect to do business with us you must do likewise."

When the Americans demurred the company held them to their contract.

This last episode shows one of the great defects in the American system

of doing business abroad. We insist upon the f.o.b. arrangement, that

is, the price at the American point of shipment. The foreigner, and

especially the Frenchman, wants a c.i.f. price which includes cost,

insurance and freight and which puts the article down at his door. The

German and English shippers, and particularly the former, have made this

kind of shipment part of their export creed, and it is one reason why

they have succeeded so wonderfully in the foreign field.

The Great American Coal Deluge also precipitated a flood of miserable

titled ladies all selling coal for "well known American companies." Most

of them were clever American women, married, or thinking they were

married, to Italian or French noblemen. Their chief effort was to get a

cash advance payment to bind the contract. Such details as price,

transportation, credit, and other essentials were unimportant.

Here is a little story which shows how these women did business and

undid American good will.

One day last August, the telephone rang in the office of the General

Manager of a long established American concern in Paris. A woman was at

the other end.

"Is this Mr. Blank?"

"Yes."

"I am Countess A. and I have a letter of introduction for you."

"Yes."

"I represent several large American coal companies and have secured a

large order for Italy."

"Yes."

"Can you tell me how I can get the coal to Italy?"

"Yes."

"Splendid! But how?"

"By boats."

"Oh, yes, I know, but have you got the boats and can I get them? I have

the order, you see, and that is the main thing."

"But, madam," asked the man, "have you cabled your company in America

about the contract?"

"No," answered the woman. "What's the use of doing that. I have no money

to spend on cables. Besides, I have full power to act. The price is all

right and the buyers are ready to sign but they want to put into the

agreement some silly business about delivery and I am asking you to help

me get the boats."

"Come and see me," said the Manager.

The woman promised to call the next morning, but she never came. Just

what she had in mind the Manager could never quite tell. But one thing

was proved in this and similar activities: The "Countess" and most of

her sisters who have been trying to put over coal and other contracts in

Paris, have little or no real authorisation for their performances, and

the principal result has been to prejudice French and Italian buyers

against us.

In seeking to make French contracts, some of these adventurers (and they

include both sexes) make the most extravagant claims. One group

circulated a really startling prospectus. At the top was the imposing

name of the corporation with a long list of branches in every part of

the world. Then followed a list of names of individuals and firms with

their assets supposed to be part and parcel of the corporation. One man

whose name I had never heard before and who was set down as a

Pittsburgher, was accredited with assets of $250,000,000. Under other

individual and firm resources ranged from one to twenty-five million.

The list included the name of a great American retail merchant, without

his consent I might add, but the promoters had cunningly misspelled his

name, which kept them within the pale of the law. The total assets of

these "concerns personally responsible for all orders entrusted" was

precisely $340,000,000. In spite of this dazzling array of

misinformation, let it be said to the credit of the French buyer that he

failed to fall for the glittering bait.

The more you go into the reasons why so many of our business men have

failed in France, the more you find out that plain everyday business

organisation seems to be conspicuously absent. Take, for example, the

question of credit. The average American doing business in France

proceeds in the assumption that every Frenchman is dishonest. This being

his theory, he either exacts cash in advance or sells "cash against

documents." Such a procedure galls the Frenchman who is accustomed to

long credit from English, German, Swiss and Spanish manufacturers and

merchants.

Of course, behind all these American errors in judgment and tact is a

lack of organised credit information. To illustrate:

When I was in London, the English Managing Director of one of the

greatest of Wall Street Banks received an inquiry from his home office

for information about the Compagnie Generale Transatlantique (the French

Line). The amazing thing was that this bank, that prides itself on its

world-wide information, had no data regarding the leading steamship line

between England and France. You may be sure that the Credit Lyonnais or

any other French banking institution has a complete record of the

American Line.

Not long ago, one of the largest banks in Chicago refused to extend

credit to a French concern, although the French Government backed up the

purchase. This concern had occasionally done business with a New York

Trust Company in the Rue de la Paix, whose French Manager was a live,

virile, far-seeing young American. The President of the French Company

laid his case before him. Quick as a flash he said:

"All right! If they won't guarantee it, I will, and on my own

responsibility."

Whereupon he put the deal through. It was the kind of swift, dramatic

performance that appeals to the Frenchman. The net result was that the

service has come back a hundredfold to the Trust Company.

The idea prevailing in America that French firms are not worthy of

credit is a matter of great surprise all over Europe. Here is the way an

Englishman whose firm has done business in France for fifty years, sized

up the situation:

"There are no better contracts in the world than those entered into in

France. Americans who have had little experience in such matters may

find the negotiations leading up to the signing of a French contract

somewhat tedious, but we do not mind this and one is so completely

protected by the laws of the country, that losses are almost unknown.

"Not long ago we had a case in point. A purchaser of lathes who had

already made an advance payment, received his machines and then by

various excuses put off the final payments for the remainder from week

to week. We waited four weeks and then made our complaint to the judge

at the tribunal. Two days later the judge ordered the delinquent firm

to pay up in full and we received our money the very same day. How long

do you think a New York court would have taken to decide a simple

question of business of this kind? The fact is that in spite of the war,

French credit remains to-day as good as any you can find."

On top of their resentment over our lack of confidence in their credit

is the added feeling which has cropped up since the beginning of the war

over the way American manufacturers have ignored many of their French

contracts. A French manufacturer summed it up in this way:

"There is no doubt that some American manufacturers who had signed

contracts for the delivery of machinery in France, deliberately sold

these machines at home at higher prices. It has created a very bad

impression and I am afraid that henceforth your salesmen will find it

much harder to operate in my country.

"The trouble is that Americans have been spoiled by too many orders.

Before the war they were all crying out for business. Now that they have

everything their own way, they have become independent and arrogant.

With the ending of the war, all this will change, for the French are not

likely to forget some of the bitter lessons they have learned.

Henceforth they will profit by them."

One reason for our laxity all up and down the French business line is

that the American has never taken the French export business any too

seriously. On the other hand, stern necessity has been the driving force

behind the English and German manufacturer. The American, too, has made

the great mistake of assuming that the foreigner, and especially the

Frenchman, is not always serious-minded and to be depended upon. If he

wants his mind disabused in this matter, let me suggest that he see him

at war. He will realise that the superb spirit of aggression and

organisation that mark him now is bound to last when peace comes.

You must not get the impression from this long list of American business

calamity that all our endeavour has failed in France. Those few great

American corporations who have planted the flag of our commercial

enterprise wherever the trade winds blow, have long and successfully

held up their end throughout the Republic. So, too, with some

individuals. The story of what one New Yorker did is an inspiring and

perhaps helpful lesson in the right way to do business in France.

This man is resolute and resourceful: he speaks French fluently and he

was familiar with the foreign trade field. With the outbreak of war he

did not lose his head and try to get business indiscriminately. Instead,

he made a careful survey of the field; he did not listen to the optimist

who said it would be a short war: his instinct told him, on the

contrary, that it would be a long one. "What will France need more than

anything else?" he asked himself.

He realised that most of all France would need machine tools. He got the

cables busy assembling goods, and by every known route he brought them

to France. When he had a warehouse full of material, he began to sell.

He not only had what the French were hungering for, but he had them to

deliver overnight. While his colleagues were frantically trying to get

their stuff in, he was getting all the business. The French like the

man who makes good.

This man met their expectations and to-day he stands at the top of the

selling heap.

More than this, he is building a factory on the outskirts of Paris where

he will make and assemble his product. Ask him the reason why he is

doing this, and he will tell you:

"First, it means good will; second, we will get the benefit of native

and cheap labour; third, we will be able to replace parts at once; and,

fourth, we will get inside the wall of the Economic Alliance."

IV--_The New France_

No matter how we heed the example of the few progressive Americans who

have successfully planted their business interests in France, we will

face a new handicap when the war ends. As in England, we will be bang up

against an industrial awakening that will mark an epoch. Coupled with

this revival will be an efficiency born of the war needs that will act

as a tremendous speeder-up.

In France this galvanised industrial life will be stimulated by a

brilliant imagination wholly lacking in the English temperament. It will

go a long way toward opening up fresh fields of labour and distribution.

Self-sufficiency will be the keynote. The automobile is a striking

instance. We had established a very promising motor market (and

especially with moderate-and low-priced cars) among the French. When the

Government assumed control of the French automobile factories and

changed their output to war munitions, the two great automobile

syndicates protested that the cutting off of the French motor supply

would mean an immense loss of good will. First came a 70 per cent duty

on practically all American cars and this was followed up by an almost

complete restriction of all American cars.

This prohibition will have the same effect as the English exclusion in

that it will stimulate the demand for the native French cars. Here we

get to one of the striking phases of the new industrial development of

immense concern to us. France has her eye on quantity output. Many signs

point to it.

When the war broke out, a certain young French engineer saw great

opportunity in shell making. He was immuned from military service, he

had a little capital of his own, and with Government aid he set to work.

Within four months he had built an enormous plant on the banks of the

Seine almost within the shadow of the Eiffel Tower. In six months he had

enlarged his capacity so that he was producing 15,000 shells a day. Last

summer he sent for the agent of a large American machinery company: "I

am going to make automobiles in series after the war." "In series" is

the French way of expressing quantity output.

"All right," said the American. "What can I do for you?"

"Simply this," said the Frenchman. "I wish to order sufficient

automatics to meet the demand when peace comes."

This is the spirit of the awakened French industry. I know of half a

dozen automobile and other producing establishments who are making plans

to manufacture popular-priced cars when the war is over. This output

will not only affect the sale of American cars in France, but will also

interfere with the market for our cheap machines in South America.

Already France is making every effort to increase her Latin-American

trade. She has immense sums of money invested in Brazil and she will

follow up this advantage keenly.

It is important for us to remember that France like England will have a

well oiled productive machine after the war. It will not only be better

but bigger than ever before. The German ill wind that devastated the

northern section will blow good in the end. Hundreds of factories

operated by hand labour before the war will now be equipped with

American labour-saving machinery. The products of these machines

operated by cheap labour will be in competition with our own commodities

manufactured by more expensive labour in many of the markets of the

world.

Formerly the French artisan could produce an article almost from raw

material to finished product: now he has learned to stand at an

automatic and labour at a single part. In short, he is becoming a

specialist which makes him a cog in the machine of quantity output.

What is true of machines and men is also true of money. The old wariness

of the French banker in underwriting industry is passing away. He is

thinking in terms of large figures and vast projects.

I could cite many examples of the new Gospel of French Self-Supply.

Before the war France manufactured lathes that were beautiful examples

of art and precision. The firms that made them were old and solid and

took infinite pride in their product. Now they realise that output must

dominate. A simple type of machine has been chosen as model and will

henceforth be made in large quantities.

Then there is the sewing machine. Before the war two

groups--Anglo-American and German--controlled the French market. By the

ingenious use of export premiums, the Germans had the best of it.

"Why always pay tribute to strangers?" now asks the French housewife. So

far as Germany is concerned, this question is already settled. But the

American sewing machine will have to struggle for its existence

hereafter in France, for plans have been made for at least three huge

factories for its production.

Striking evidence of the growing French industrial independence of

Germany is her advance in crucible making. For years Sèvres vied with

Limoges for ceramic honours. To-day the vast plant which once produced

the most exquisite and delicate ware in the world is now producing the

less lovely but more serviceable crucibles, condensers and retorts

necessary for the distillation of the powerful acid used in modern high

explosives. Previous to the war, the Central Empire had a monopoly on

this market. Indeed, much of the pottery and glassware used in

laboratories and chemical factories was made in Bohemia and marketed by

Germany. Now the Sèvres plant is shipping these goods to England and

Russia.

So, too, with dye stuffs. A whole new French colouring industry is being

created. A Société d'Etude has been formed to make a scientific survey

and this will be replaced by a National Company to undertake the

manufacture of all coal tar products.

The use of a certain number of new war factories has been guaranteed to

the company by the Minister of War. Typical of the purpose which will

animate the enterprise is one of the articles of the National Company

which provides that the Director of the Dye Stuff Industry must be of

French birth. An agreement has also been made with England and Italy to

protect the colour output of the three countries with a high tariff

after the war. Here you find one tangible evidence of the working out of

the Paris Economic Pact.

Even while the invader's hand still lies heavy upon the land, France

looks ahead to reconstruction. Last summer Paris flocked to a graphic

exhibition of how to rebuild a destroyed city. It was called La Cité

Réconstitué, and was held in the Tuileries Garden. Here you could see

the modern way of making a Phoenix rise quickly out of the ashes. There

were model schoolhouses, churches, factories, and cottages, all with

standardised parts which could be thrown together in an almost

incredibly short time.

With Self-Sufficiency has come a desire for new business knowledge. Not

long ago an American business man who has lived in Paris for many years,

received a letter from a young French friend in the trenches at Verdun.

The soldier wrote:

The War After the War · 第 3 / 11 段