In proportion to our wealth and our domestic activities our export trade before the Great War was indeed small in comparison to that of other nationalities. Slight interest was taken in outside matters of any kind, even our publicists giving little heed to foreign affairs. However, prior to 1914 there had been a slowly growing interest and a gradual increase in our export trade, which from 1915 to 1920 showed a more rapid extension. In 1915 our exports amounted to $3,500,000,000, in 1920 to $8,228,000,000; to South America in round numbers, in 1915, $144,000,000, in 1920, $624,000,000, in 1921, $273,000,000.
As to the past and future of this matter, with especial reference to South America, two widely divergent opinions prevail; one, that we have accomplished wonders, and that our trade with that continent will be permanent and, with improvement in exchange and other conditions, increasing; the other, that we have not done so well as we might and ought; and that owing to our indifference, inefficiency, ignorance, and bumptiousness, we shall be unable to retain anything like the proportion of trade which we have enjoyed or so much of it as might seem our reasonable share. With some ground for each opinion, the truth as usual lying between, there is a possibility of either result depending upon a variety of circumstances. The first is whether some of us acquire a willingness to learn, or persist in certain mistaken notions and practices. Well merited criticism of the methods of some exporters and salesmen is far from applying to all. The “S” of a well known concern is as familiar in South America as in North. Other great corporations are famous the world over. Their success in foreign sales has meant the employment of many men abroad and of a large number at home, with the home business supplemented and steadied by the foreign. In addition to the extensive pre-war export of some large companies, many small ones, whose names are less familiar, have long sent their wares to foreign lands.
A matter of prime importance is that the entire nation and people become convinced of the value, the necessity even, of our maintaining a large export and import trade, for we cannot have one without the other. The provincialism of our thought and education, which have a reciprocal influence, must be laid aside. Congressmen should be able to feel that their reëlection will depend upon their ability to grasp the problems confronting the whole nation, problems of labor, transportation, commerce, finance, and world interests, rather than upon their catering to a special class or securing a sectional advantage. It would be well if they were high-minded enough to act for the country’s best interests regardless of their future fate. To demand ability and statesmanship of their representatives in these crucial times is the privilege and duty of the people.
As a nation we have prospered because of the richness of our natural resources and the enormous extent of our agricultural lands. The latter being now for the most part occupied, with increasing population our welfare will depend more largely upon the development of our manufacturing industries and of our export trade. That the prosperity of our manufacturing towns and seaports will be reflected in our agricultural districts and will benefit the entire nation should be self-evident. Supported by the people the Government will act in accordance with its best judgment. In any case, every one should feel that it shows a shameful lack of a sense of duty and of patriotism to place one’s personal fortune above the nation’s welfare in peace no less than in war.
For success in foreign trade as well as for safety at home our Government must and no doubt will see that production is not stifled for any reason, that our transportation on land and sea, and communication by wire is unhampered by strikes or otherwise. If need arises, previous restrictive measures should be removed and suitable aid granted. With abundance of shipping which we formerly lacked, equality with European freight rates must be maintained or competition will be impossible. The establishing by our banks of needed branches, fortunately made practicable, has been accomplished. The important question of trademarks and patents may require further Governmental consideration and diplomatic action, though some international agreements have already been made. In certain countries the laws have been unfair, prejudicial to the interests of honest manufacturers and favoring the unscrupulous; some of whom have taken advantage of the situation to the embarrassment of legitimate American business. Trademarks have been practically stolen, through previous registration by foreigners without title to use them. We must remember that the same thing has been done by Americans in the United States, who have registered here trademarks owned in Europe.
Of immense service would be a few free ports where raw material could enter, and without paying duty be exported either as entered or after being manufactured. Foreign countries have fostered commerce in this way and by allowing favorable freight rates through subsidies and otherwise. Competition under Government ownership has produced an enormous deficit. While better results may be expected under private ownership, our shipping will be at a disadvantage from difficulties imposed by the Seamen’s Bill. It is said that American shippers may be able to pay higher wages than European if relieved of the necessity of employing larger crews and superfluous engineers. The Bureaus of the Department of Commerce now perform very valuable service: the Bureau of Foreign and Domestic Commerce, the Bureau of Standards; also the Bureau of Markets of the Department of Agriculture. A consistent foreign policy, undoubtedly to be formulated and pursued by our able Secretaries of State and Commerce, will be of great service in relation to foreign trade and for our general prosperity.
To the intelligent sympathy of the country at large and the coöperation of the Government must be added the eager purpose of the manufacturer, and the interest of young men who will make of export trade their chosen field of labor. The manufacturer who contemplates entering this broader field or who, through peculiar war conditions, has been brought into it without preliminary investigation, should recognize the fact that careful intensive study is a prerequisite for successful permanent trade, a method which has been followed by many Europeans and by some Americans with excellent results.
The book here presented it is hoped will furnish a useful groundwork of information on South America, to be supplemented by further study of details appropriate to the character of the prospective exports and to any special conditions. In these countries generally, we have observed a great diversity in the population and disparity in their condition. One may hope that the latter will be diminished by advance in wages and by the education of the Indians, by means of which their producing and their purchasing power may be increased; but for a long time two broad classes must be distinguished and catered to: the cultured and literate, and the poor and illiterate laborers, especially the Indians of the North and West Coasts. It is evident that the requirements of a cultivated society where the customs and dress are European in character, or of a homogeneous middle-class population, would be quite different from those of Indians who sleep on the floor, a whole family in one room. A personal acquaintance with the character of the people, their manner of life, and their methods of business is extremely desirable. If the head of a manufacturing industry is able himself to make “The South American Tour” even in a hasty manner, it will be to his advantage; if not, his export manager, if he has one, should personally study the ground. Those who look merely for a slight supplementary trade may best accomplish this by arranging with a reliable commission house and following directions. If the manufacturer decides to undertake the matter himself, he must plan a careful campaign.
To make haste slowly is a good rule. Unhappily in the past some who have attempted foreign trade have ignored the advice and experience of others, and deemed information quite unnecessary. With the know-it-all attitude, the idea that business is business everywhere, and that goods and methods successful at home must be equally good for abroad, before the War they proceeded in such a manner as either to make an utter failure and abandon the project, or after large and needless losses to secure profitable business. Criticism of two different kinds made by South Americans should lead to the correction of faults; otherwise there will be a complete loss of trade on the part of those who are guilty, and much injury to our commerce generally from the resulting bad reputation given to all Americans. One form of criticism is directed to the character, methods, and manners of the traveling salesman or agent, the other to the shortcomings of the home office.