Commercial men should by this time be aware that in the regions to the south business opportunities are large and are rapidly increasing, that the population of the Latin American Republics is above seventy millions, and that their commerce, amounting in 1912 to two and a half billion dollars, is far greater than that of China and Japan together. In fact Argentina alone has more commerce than either of these Asiatic countries, and Brazil has more than Japan. Further, the ratio of increase on our South American continent is greater than in those regions of Asia.
Next, the manufacturer should realize that the longer he delays entering the field the smaller will be his chance of success; that the British and Germans have long been on the ground, and that, in spite of our fancied superiority in business methods, they will not easily be supplanted. He should understand that the South Americans in general are not eager to trade with us, their association with Europe, both by blood and by steamship lines, being closer and stronger. In some countries we are really unpopular; in others they do not care a rap about us either way. Many Latin Americans are distrustful and suspicious of our nation from a political point of view. They dislike the boorish and supercilious manner of some of our half-educated traveling, railroad, and mining men, although Americans of broader intelligence and better manners are well liked. Even in Peru, which country, if any, is supposed to be especially friendly, a prominent statesman, F. Garcia Calderón, in his recent book on Latin America, expressed grave fears of the Yankee Peril, more serious than that of the Germans.
Pleasant speeches at dinner should not blur the fact that Latin Americans are more enthusiastic about Latin America than Pan America. Capital, to be sure, from any quarter is welcomed in undeveloped countries and decidedly better bargains will not be despised. Ecuador, Peru, and Bolivia gladly accept our money for internal development, but Brazil, Chile, and Argentina, as a rule, get what they need from Europe, nearly a billion and a half dollars being invested in Argentina by Great Britain alone. It is time to realize that it is for our interest more than theirs to cultivate friendly and commercial relations with South Americans. They will not be neglected by others or suffer greatly if we do not favor them with our presence and regard. To undertake the establishing of commercial relations with the idea that it is a condescension on our part is a mistake certain to interfere with the rapid extension of business.
It is obvious that only those American goods which are exclusive or which require no tariff advantage can long compete successfully on even terms abroad with European wares, now sold by active enterprising business men determined to keep and increase their trade.
An important and primary consideration is the willingness and ability to conform to South American custom in regard to credit; it is rulable to defer payment from three to six months after the delivery of the goods, the price being fixed accordingly or interest being added. Such credit, readily granted by European firms, must be given by ours in order to secure extensive trade. In some quarters an idea is current that South American credit is not generally good, but shippers of many years’ experience assert that customers there are quite as reliable and honest as those in Europe or the United States. Furthermore, certain New York shippers take charge of and guarantee the collections, so that no loss is possible. Where results have been unsatisfactory it has often been due to the incompetence or dishonesty of the agent rather than to the Latin American with whom he dealt. Naturally suitable precautions should be taken and careful scrutiny exercised, as not every one is honest in any quarter of the globe.
As an aid in investigating credit, as well as for other reasons, the establishment of American banks in the various countries is an urgent necessity. Rumors as to plans for these have long been abroad, but as yet nothing has been accomplished. Few of our houses may be capable of organizing a great chain of banks like that of London and La Plata; those who might apparently do not wish to, or they are awaiting the passage of the currency bill. But in any of our large cities capital might be raised to organize a single bank in Rio, Montevideo, Buenos Aires, or other cities, which would be a valuable center of credit information as well as of exchange. Under able and cautious management such banks would be of great service to our exporters and repay the investors with 10 or 12 per cent dividends if not more.
Much has been said about American Steamship Lines as an encouragement to our commerce. While it would indeed be a pleasure to see the Star Spangled Banner now and again floating from vessels in foreign ports, this is of less consequence than the banks. If neither business judgment nor patriotism impels our multi-millionaires to build up a merchant marine, our needs will be supplied by others. Already we have excellent bi-weekly passenger service from New York to Buenos Aires and every week steamers to Rio. On the completion of the Canal we shall have weekly service from New York down the West Coast by at least two good lines of steamers. In addition a large number of freight steamers is already plying to each side.
With favorable consideration in regard to embarking on foreign trade, or even as a preliminary, some ordinary geographical knowledge and a slight acquaintance with local conditions, easily procured, is highly desirable. It is not a prepossessing introduction for a gentleman to receive a letter directed “Buenos Aires, Brazil or Chile,” as often happens, this being one degree worse than if Brazil or Chile were used alone, as the former address betrays not merely ignorance but the man’s indifference to his display of it. The common practice of mailing letters with insufficient postage is still more annoying, and is absolutely inexcusable.
Many of our largest industries and some smaller ones already have an excellent trade with South America, so that on the average the United States stands third in the value of goods imported into the various countries. Great Britain is first and Germany second. One meets their representatives everywhere.
As from six weeks to three months will pass before an answer may be received to one’s letter addressed to the United States Consul resident in the various countries, it is the more important to learn as much as possible at home of the character of the different localities, the variety of climate and productions, the condition of the people and their requirements; some of which information may be found in the valuable monthly Bulletin of the Pan American Union, in the excellent Semi-Monthly, The South American, and in the multitude of books recently written on the various countries.