tunately has been one of the most serious obstructions to the expansion of American trade, but if manufacturers realize the opportunities open to them, use a little foresight and discretion, and be content with smaller profits at the beginning of their export trade with the knowledge that, if handled properly, it will develop into a valuable commercial asset, the American export trade will rapidly extend and in a short time outlive the reputation which has been given it in some places through the follies of a few.

"It is a deplorable fact that in a great many instances American goods of superior quality are supplanted by inferior foreign goods, mainly because the foreign manufacturers make a careful study of the export trade, understand the importance of packing properly, and thoroughly appreciate the importance of long time credits, which is such an essential factor, especially with the more remote countries. They send personal representatives with a thorough knowledge of the most efficient methods for the introduction of their goods, and their agencies are placed as a rule, in charge of fellow countrymen, who put forth their best efforts, not only with a view to making the trade a success from a commercial standpoint, but because they are influenced by the spirit of patriotism to forward the interests of their native land. On the other hand, American manufacturers have, in a great many instances, placed agencies in charge of foreigners, and it has been a well known fact that these latter work for the advance of American trade only in so far as it affects their personal commercial standing, but some of them are not at all loath to indulge in certain reprehensible practices, which not only result in the ultimate decline of American trade, but enable foreign manufacturers to enter the market with cheaper imitations of American goods. Trade marks have been imitated and valuable commercial secrets have been disclosed to the detriment of our foreign commercial relations.

"One other important point which should be considered is the reluctance which American manufacturers display in changing certain trade practices Ito conform to those employed by foreign manufacturers. In many places where the superiority of American goods is readily recognized, our market is very limited, for the reason that our manufacturers refuse to follow the commercial traditions which have been in vogue many years. American methods are as a rule up to date in every respect as related to home trade, but the hesitancy of American manufacturers to abandon these methods where they manifestly will not succeed, has been, and still is, a serious fault.

"It should be remembered that in many of the countries where the greatest opportunities for the expansion of our export trade exist, national traditions and prejudices have been dealt with and overcome by tact and diplomacy. When American manufacturers are willing to give this phase of export trade due attention, send qualified personal representatives to introduce their goods, establish agencies in charge of their own countrymen, and conform to existing commercial customs, little fear need be entertained for the rapid expansion of our export trade."

The Consul at Calcutta, India, under date of June 12, 1910, writes an interesting letter on the general trade condition in his consular jurisdiction, to which is appended a long list of corporations and firms handling American made goods in Calcutta and other centers of population in Southern India. The Consul, who writes hopefully of trade prospects if certain indispensable requirements are observed, concludes his letter with some words of advice to manufacturers contemplating entering the Indian field:

"I may say to you as I have said to others, that the only way to secure a foothold in the Indian commercial field is by personal representation.

Those who have entered the field and made a success of their efforts have done so by personal representation, in some instances by sending an agent who was maintained in the field until he became thoroughly acquainted with the commercial wants of the country, the methods of doing business and learned something of the vernaculars; in other cases, where it was practicable, American firms have appointed exclusive agents engaged in business, and have worked out good results in that way. Advertising by catalogues and otherwise as a rule does no good in India until after the goods have been introduced and exhibited to some extent. Advertising in India is good only as a means of calling attention to goods already introduced.

“I shall be very glad to aid you in any other way that may be in my power."

The Consul at Cologne, Germany, writes that in his judgment it is of very little use to try to establish direct trade there by means of catalogues, circulars, or any other form of advertising literature unless the same are printed in German, with sizes in metric measure; prices in marks; weights in kilos, and also rates of duty and other charges required for the delivery of the goods at their destination. The Consul says in part:

"Germany is a country of short distances and small business. The entire empire is but little if any larger than the State of Texas, and therefore freight rates are very light; practically all packages are sent by mail, and the average charge for a package of eleven pounds is about twelve cents. Any part of the Empire can be reached in twenty-four hours, so that there need be very little delay in getting return shipments for an order. These being the facts, as a rule only small orders are given, for the retailer reasons that as he can quickly replenish his supplies it would be a waste of capital to purchase a large stock at once. You can therefore see how much advantage an American firm would have if it had in some central place a stock of goods to sell from. When ordering goods from America is suggested to merchants here, the answer is generally-'O, it takes too long. I have not seen the goods and do not know what I will get, neither do I know how much the freight, duty and other charges will be, so I prefer buying where I know the goods, so that if they are not all right I can refuse to receive them.' Nearly all successful sellers of American goods have stocks here and I would recommend others who desire to get into the trade successfully, to go and do likewise."

The Consul at Birmingham, England, writes under date May 10, 1910, in part, as follows:

"I shall be glad to do all in my power to assist the manufacturers of New Jersey, or any other part of the United States to introduce their goods abroad, and your request for a list of importers and merchants in this consular district will be complied with to the best of my ability; but in the first place I desire to say that it is practically impossible to name all who sell American products, because it is not a habit for merchants and importers to emphasize the fact that goods they have for sale are made in the United States or elsewhere outside the United Kingdom. In only exceptional cases is the sale of an article promoted by having it known that it is of American or other foreign manufacture. In typewriters, sewing machines, and a few other articles, the fact that it is of American invention and make is an advertisement of value; but in general, knowing that a thing is made outside of the United Kingdom is an obstacle to its sale. One constantly notices in connection with advertisements here, the advice to "patronize British labor and industry by buying British goods." The whole tendency

is to appeal to the patriotism of the purchaser, and as a consequence, the sentiment for British goods grows stronger each year.

"Naturally, of course, this sentiment is not effective where foreign goods of equal quality are sold at a price lower than the home made article, but it is a striking fact that Englishmen generally regard goods of foreign make as not so good as their own. When you contrast this sentiment with that which exists in the United States, that goods are necessarily better because they are imported, you will have a better understanding of the situation."

It is further urged that comparatively little can be done in England toward the introduction of foreign goods by correspondence. The British merchant does not buy an article he has not seen, and is shy of a manufacturer whose reputation he does not know. As a rule he stands by those with whom he is acquainted, and who have served him well, but if once convinced that goods are up to the standard in every respect and answer his requirements, his trade, which is very desirable, may be easily secured.

"The best way to secure trade is for manufacturers to have their own representatives in England, or, in case that should not be expedient, to have their goods handled by agents in the great commercial centers. If catalogues are sent over it is important that prices should be in English money and quoted delivered at the nearest English port, and not, as is often the case, f. o. b. at American port of shipment. The purchaser will then know what his goods are going to cost him delivered. Another indispensable requirement is that goods furnished shall be up to the standard of the samples; neglect of this fundamental rule of fair dealing has blighted many fair business opportunities. A serious detriment to our trade is the frequently occuring delay in delivery. The English merchant very naturally objects to being served promptly only when the demand in the United States is light, and being obliged to wait months beyond the time appointed, when the demand is heavy.

"It is also highly important that when a sole agency is given to a merchant or agent in the United Kingdom, there should be the utmost care that no orders from other sources should be filled, and it is also important that when articles are sold to merchants or agents to be marketed at a fixed price, that price under no circumstances shall be cut. Many instances are known wherein the market for American articles of standard character and excellent quality has been seriously interfered with through certain dealers in the United Kingdom having cut prices so that they were sold as an advertisement with practically no profit."

The concluding paragraph of the letter is quoted entire:

"I have endeavored to comply with your request as fully as possible, but would like to say that if you give me a particular line of manufactures-not too many at a time, and ask specific questions as to the customs of the market, opportunities for sale, and best method of introducing them, I can be of far greater use than by writing in a general way. I trust you will understand that it will be a pleasure rather than a trouble to answer any questions you forward to me, and to furnish you information that benefit the manufacturers, not only of New Jersey, but of our whole country."

From many of the large cities of the Orient, come statements to the effect that business in these places is largely in the hands of European merchants-British and German principally, and that there are grounds for suspicion that the natural prediliction

in favor of goods manufactured in their own country is so strong, that American goods for which they become agents are not given a fair chance on the market. The policy urged as best in the entire correspondence is the establishment wherever business is sought, of agencies in charge of American citizens, actuated in all they do by patriotism, equally with a desire for profit. Where this is not practicable, the best course is to employ bright, energetic salesmen thoroughly well acquainted with everything relating to the goods to be marketed, provided with samples where possible, and able to speak and write the language of the country correctly and fluently. Seeking to establish trade for or even to attract serious attention to American goods, solely by means of circulars, catalogues and other similar methods of advertising, is, in the judgment of our correspondents, an utterly profitless waste of time and money; particularly when such literature, printed in English, is distributed in non-English speaking countries, where, like a large portion of South America and the countries of middle and southeastern Europe, comparatively few understand our language. The Consul at Belgrade, Servia, writes:

"Unfortunately, most of the American catalogues and price lists are printed in English only, a language that is very little understood here. To get over this difficulty I have devised a plan by which catalogues received from American firms at this Consulate are sent to the business firms here with a notice that the Consulate is at their service for translation and other information. The Consulate is frequently visited by those who have received catalogues seeking advice relative to the goods advertised."

The Consul at Liege, Belgium, says in reference to the same subject:

"Of course, our export trade is at a decided disadvantage as compared with that of other countries, owing mainly to our lack of a sufficient number of trained and well equipped commercial travelers who speak the language of the country, and unless our exporters take this matter in hand and adopt measures to meet this much needed want, there seems little hope of being able to accomplish much in the way of actively pushing our export trade."

The same note runs throughout the entire correspondence: an immense accession of trade awaits American manufacturers just as soon as they see fit to discard the antiquated methods pursued by many of them at present and adopt those of other nations, more particularly the Germans, who, everywhere throughout the world, study with the most painstaking care, not only the needs, tastes, means and convenience of the peoples whose trade they are seeking, but are careful to observe also a deferential attitude toward their prejudices. Conciliation and accommodation, in the broadest possible sense of these terms, is the keynote of their commercial activity, and this wise policy has

won for them a rich harvest of trade in all the open markets of the world. That a large number of our manufacturers are either unaware of this valuable service, placed at their disposal by the government, or for one or another reason have failed to profit by it, seems clearly evident from the tenor of the letters received from the Consuls, in which the comparatively crude methods of American exporters and salesmen in foreign countries are contrasted with the up-to-date policy and careful attention to every detail given to the foreign trade propaganda by representatives of European manufacturers, by whom, as a rule, nothing in the way of concessions to local business customs or even prejudices is overloked or refused.

The difference in the attitude of German, English and American manufacturers toward foreign trade opportunities, is well illustrated by an instance cited in the "Exporters Review," an American trade publication: "A commission house in Lima, Peru, received an inquiry for a machine in regard to which it had no information. Pro forma orders were sent to New York, London and Hamburg. In from four to six months a short answer arrived from New York quoting a price in United States gold at which the manufacturers would deliver the machine at some interior point in Michigan; no other information.

"In from three to five months the answer from London was received, quoting a price in Sterling at which they would deliver in London, sent a photograph of the machine with a politely expressed wish for the order.

"The answer from Hamburg came by return mail. It consisted of a pro forma invoice made out in Peruvian money, showing all the expenses that would be incurred and giving the cost delivered in Callio Bay, together with a blue print of the machine and instructions in Spanish for setting it up.'

99

This thoroughness of method which seeks to smooth the way for the buyer, and remove every possible obstacle to the consummation of sales, fully accounts for why the Germans are getting more and more of the business. The reasons advanced by intelligent foreigners in explanation of the small sales of American goods in their respective countries as shown in the correspondence of the Bureau, may be briefly summarized as follows:

"Little effort is made by American manufacturers to get our trade."

"When they send salesmen to our part of the world, they are usually men who do not speak the language and who make no effort to understand the people."

"They try to force on us things they wish to sell, instead of