Salvador of the Twentieth Century

by Percy F. Martin

Entrance to Avenida La Ceiba at San Salvador.

The famous Avenida under construction.

As an instance of the German's enterprise may be cited the supply of cloths and hats for the natives which are found exclusively in Bolivia, the same individual trading in Peru, however, bringing out quite a different class of stuffs and styles for that country. The ordinary British or American manufacturer would probably contend that it would be useless or unprofitable to make special materials or designs of this kind so entirely unlike anything before attempted, and he would leave the matter just there. Not so with the observant travelling German. He first studies the question of demand, then he sends a complete range of patterns and samples from the looms of the native manufacturers to his house in Germany. In a few months' time there arrive in the country the German imitation, and, first in small, then in ever-increasing quantities, is built up a connection; and where the Salvadorean, Guatemalan, Bolivian, or Peruvian importer finds his materials and his hats, he buys most of his other miscellaneous European goods, so as to have but one account and one customer.

Then, in regard to credits, the German is most accommodating, granting payments over twelve, eighteen, and even twenty-four months, and never asking any interest upon his outstanding accounts. How he does it is a mystery, more especially as his prices in no way exceed, and in the majority of instances are below, the prices of other European and American houses, while the number of his bad debts is considerable. Probably there is a seamy side to all this promiscuous trading by the German houses; but if there is, there must likewise be some decided advantages accruing, since no one would credit Teutonic manufacturers and dealers with motives of philanthropy. But whether their commercial dealings with the Latin-American races be profitable or profitless, it is beyond question that they are extending, and extending rapidly—all of which means that there is so much smaller a field for other countries. These specimens of Bolivian hats, Peruvian dress-cloths, Mexican rebosos, and Guatemalan mantillas, made in Germany, resemble in every way the native manufactures—so closely, indeed, that they cannot be told from the original except by an expert. The Germans are actually making all these articles, exporting them to these countries, and selling them there more cheaply than the native article. The question is, "How can they do it?"

It is decidedly useful to come abroad to such countries as the Latin-American States, if only to glean a few opinions as to the position which Great Britain occupies in the minds of the people of these regions. There are many individuals whose judgments are well worth recording, since while they may have gathered their ideas from trading only—and, indeed, few of them have been outside the borders of their own State—are sufficiently shrewd in their criticisms to make these latter worth observing.

The good people of Salvador, like a great many other experienced individuals, both in Latin-America and elsewhere, know the advantages to be derived from a system of Protection, and they are at a complete loss to understand how it is that Great Britain alone among the trading nations of the world can "afford"—that is the expression used—to admit a policy of Free Trade, and especially in view of the Empire's Colonies' well-known feelings on the subject. Here, as elsewhere, the advantages of Free Trade are admitted; but without some form of retaliation it is absurd to suppose that any other nations will ever accept it. The opinion in general in these countries, where local manufactures are gradually commencing to make themselves a potent object of attention, is that Free Trade is desirable for all raw materials, but that a duty should be imposed upon all manufactured articles, whether they compete with local productions or no.

These Latin-American critics can but observe how the export trade of other foreign countries, such as Germany, the United States, and France, is continually increasing, while that of Great Britain, where it does not exhibit positive signs of decay, remains in a stagnant condition. This state of things is attributed to Great Britain's adherence to Free Trade, and the system of Protection adopted by its competitors. I have not encountered a single individual with whom I have discussed such matters as these who does not hold the opinion that, without reciprocity, real Free Trade is an impossibility. These intelligent people are just as convinced that, were Great Britain to tax those countries which protect their industries against it, they could before long be forced to adopt Free Trade also; and if they did not do so, Great Britain could and should continue to tax them until they did. They can see quite clearly that the interests of the producer and consumer are so closely interwoven and connected that any injury to the trade of the former at once reacts on to the latter; in slack times, as these Latin-American races have good reason to know, it is really the consumer who is most seriously affected, since his very existence depends upon the producer and manufacturer. Thus any action, they very sensibly argue, which serves to revive or to promote trade must, of a necessity, increase the prosperity of all. It is strange, indeed, that such a view should be so clear to individuals living out here, and remain absolutely obscure to those thousands of individuals at home.

Our great strength in these Latin-American countries has always been our textile manufactures, and it is here that we are being attacked by both the United States and Germany. The former have successfully imitated most of the English designs, and these, combined with the better class of printing, the larger proportion of cotton, and the superior quality of the water employed in the dyeing of the material, have combined to make the American textiles more to the liking of the native buyers. So much is this the case, that the importers who formerly took British goods almost exclusively now send home American patterns and designs to be produced in England, even the United States trade-marks and lettering upon the piece-goods being followed as closely as it is possible to do without risking an action for infringement. The labels, instead of being printed, as heretofore, are now lithographed, and are likewise colourable imitations of the American ones; and it is sad to have to relate that, in order to keep together some semblance of British trade, it is apparently necessary to pass off the products of our looms as "American."