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[362] 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[363] 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[364] 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[365] the manufacturers because of the damaged condition in which it was received.”
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[366] 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[367] 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[368] 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[369] 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.
[370]
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[371] 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[372] 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[373] 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[374] 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[375] 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[376] 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.”
