Guatemala, because of its nearness, is an unusually good market for the products of the United States. With the increase in the transportation facilities which will result from railway building and other transportation enterprises that will add to the ocean shipping facilities the business should increase greatly if merchants and manufacturers in the United States choose to take advantage of it.
Official support is given this view by the reports of the American Consuls in Guatemala. Consul General Winslow has frequently called attention to the advantages which may be obtained. In one report he stated that large quantities of groceries, flour, potatoes, shoes, drygoods, and clothing come from the United States, but Germany and England seem to have the lead in machinery and hardware. There is surely a fine opening in these latter lines for exporters of the United States, but they must be in position to push their goods personally, to give longer credits, and to take more pains with packing. In all, it is safe to say, there are $8,000,000 of American capital invested in Guatemala and there is an opening for much more, if it is backed by the right kind of management.
In a report, to the British Foreign Office in 1905 Mr. Hervey, the English Consul, stated that as far as actual volume of business was concerned, as shown in the imports and exports, there appeared to have been a distinct improvement in the general trade of the country compared with immediately preceding years. The imports were the largest for the past seven years. The revenue of the country showed a great improvement all around, being, in fact, nearly double that of 1903, the most important increases being shown in import and export duties, the former benefiting by the 50 per cent. of their total payable in gold, and the latter by the tax of $1 gold per quintal which has been collected throughout the year.
The outlook for the future was, the report said, more favorable than it had been for many years. The completion of the Guatemala Northern Railway would shorten the distance from Europe and the United States and promote trade. Already German and British steamers were calling at Puerto Barrios in addition to those of the United Fruit Company. The greater steadiness of exchange and the fall in the gold premium were further factors of importance in restoring confidence. With continued peace, and with it the prospect of increased labor facilities, so that the agricultural and mineral wealth to be won from the soil may attain to its fullest development, brighter days were dawning for Guatemala.
Articles Brought from Other Countries.
A general statement regarding the articles which Guatemala buys abroad and which therefore are of interest to exporters is as follows:
The principal imports consist of drygoods, almost exclusively cotton manufactures, brought from Great Britain, the United States, and Germany. In this branch British manufacture commands the market, the imports from the United States and Germany being relatively small. The more important articles are gray cloths; bleached shirtings, 7-8 and 9-8 prints; fancy cloths; gray, white, and blue drills; colored drills; handkerchiefs; gray and dyed yarns; Turkey red yarns; sewing cottons; trimmings; cotton blankets, etc. Of these goods about 75 per cent. are of British origin, 15 per cent. American, and 10 per cent. German. American manufacturers compete chiefly in drills, denims, blankets, prints, gray cloths, and bleached shirtings, while German goods imported consist chiefly of drills, prints, Turkey red yarns, blankets, and trimmings.
Woolen goods are not in very great demand; the principal lines are blankets, shawls, braids, hats, Berlin wool, and but few piece goods.
Hats are imported mostly from the United States, Germany, and only a few from the United Kingdom; shawls from Germany, principally; piece goods from Germany, France, and the United Kingdom.