ROOM FOR AMERICAN MANUFACTURES IN GERMANY. (From United States Consul-General Hughes, Coburg, Germany.) Autos. Small automobiles or runabouts of American make, of from 6 to 10 horsepower, would, I think, have a good sale in this district. So far, only one American company has even asked for information as to the real class of goods wanted-though some fifty have sent English catalogues, which are worse than useless, as the people will not even look at them. What is wanted is a light machine, easily worked-not a complicated piece of machinery—with good brake power, as it is very hilly here, and above all a machine that is not too expensive. I should advise the opening of a small depot either here or in some neighboring city, where the goods can be shown and explained and where duplicate parts can be quickly and easily had. This latter is a very important matter, as German makers do not care to repair foreign (especially American) machines if they can possibly help it. Rubber boots and shoes. - For rubber boots and shoes I know no better market than this, yet it seems to be totally neglected by our manufacturers. We now have to send to Berlin for everything of that kind, which causes extra expense and no chance to pick out the kind of rubber wanted. Gas cooking stoves.—I think there is no place in the world where so primitive a gas stove sells for so much money as in Coburg. It would pay any of our well-known makers to send a few samples to the Coburg City Gas Works on commission and thus introduce something to the local market worth having. Fruits.- While some kinds of California and other American dried and evaporated fruits are for sale here, the real good article is not to be had, and consequently we are often told that our fruits are not as high class as the Metz and other German brands. Our large exporting houses can rest assured that much better markets are to be had in the middle and southern parts of the Empire than in Hamburg and Berlin, especially for this class of goods, as the people are great preserved-fruit eaters and the local fruits are neither extra good nor cheap. The best way to send them is in half-pound glasses or tins, with labels in German explaining just how the fruits. are to be treated or served. Hardware and agricultural implements.-This is a branch that has been somewhat pushed in a business-like manner, with the result that it has paid well. While on every hand one can see evidences of the work accomplished, I think that very much more could be done if proper catalogues, diagrams, and explanations in the German language were sent around into the towns and villages. Coal. Since my last year's report (1902) nothing seems to have been done to promote the sale of this article. The samples that have been tried here have given most satisfactory results, but the business has been allowed to drop without a single effort to keep even the ground won by the favorable trials at different porcelain factories. The British seem to see the business that is to be done in coal in Germany, as the following statement shows: Imports into Germany of British coal during the first six months of 1901, 1902, and 1903 were 2,356,980, 2,289,259, and 2,444,688 tons, respectively. Horses. -There has been quite a good demand for useful carriage, heavy draft, and a few selected saddle horses in this market, but only a few American horses have been for sale. Owing to the stony and hilly nature of the country, eastern horses do very well here, but western animals' hoofs go to pieces too quickly. There is quite an opening for very small ponies to take the place of dogs as used at present in pulling butcher, milk, and other carts. Small chemical fire engines. —A good agent for an inexpensive but reliable class of these goods, if sent through the smaller towns, etc., giving practical exhibitions of his apparatus, would, I am sure, do a good business. COBURG, GERMANY, August 13, 1903. OLIVER J. D. HUGHES, Consul-General. AMERICAN AND OTHER INTERESTS IN MEXICO. In its issue of August 8, 1903, the South American Journal, a British publication, has an editorial on "British trade in Mexico." After a word commendatory of a report by British Consul Leay, it goes on to say: The report is well worth the attention of our manufacturers and merchants, since it emphasizes the fact which has been generally known for many years that British trade with Mexico has seriously declined and will probably continue to diminish. So much is this the case that there is not a single British firm or merchant in the city of Veracruz nor, we believe, in any of the other ports or cities of Mexico. On the other hand, trade between the Republic and the United States continues to flourish and increase and, besides, the Americans are actively engaged in investing large sums in mining and other enterprises in the country. These investments, according to a recent report, now exceed $500,000,000, whereas the British investments in railways, etc., have not recently made any advance, but were mostly made many years ago. The causes of our retrogression are well worth being made the subject of careful inquiry. It can not be alleged that it is on account of stagnation in the country, since no other Latin American Republic can show such a record of progress and progression in recent years as Mexico, although it is true that business is now disarranged, but only temporarily we believe, through the fall in the value of the silver standard. Mr. Leay has evidently taken great pains to make his report of service to exporters, since he has gone into numerous details in describing the classes of goods which are in demand and has specified the manner in which they should be packed and invoiced for the customs authorities. This makes his report one of the most valuable which we have received through the foreign office for a long time and, in fact, ought to be a model for other consuls. There is also a series of tables of statistics relating to the imports and exports and to the shipping entering Mexican ports during the last five years. The decline of British trade is clear from the figures we quote from the report. In the years 1893-1895 imports from the United Kingdom formed 17 per cent of the total; in the period 1898-1900, 18 per cent; and last year it was only 13 per cent. In 1901-2 the imports from the United Kingdom and its colonies were valued at $8,142,038, against $9,659,515 in 1900-1901, a loss of $1,517,477. It is fair, however, to mention that the import trade between Mexico and other European countries has also declined in that period, Germany showing a decrease from $6,890,964 to $6,277,785, a difference of $613,179; France comes next with a decrease of $272,524—that is, from $6,389,715 to $6,117,190. On the other hand, the imports from the United States increased from $34,260,160 to $36,401,420, a gain of $2,141,260, almost exactly the value of the trade lost by Europe. It should be borne in mind that these figures represent, as nearly as possible, actual values, since in Mexico the excellent system has been adopted of valuing exports and imports at the actual rates of exchange of the day, another instance of the careful and practical methods of Señor Limantour. The high rate of exchange has tended to stimulate domestic manufactures in many important lines, while the Government has made some efforts to encourage exports with a view to reducing the unfavorable balance payable in gold. This has been especially the case with cotton manufactures, and the steps recently taken are likely to result in diverting to Mexican mills a considerable portion of the trade in several Latin American countries at present principally in British hands. Great progress has been made in the last few years in diversifying the industries of Mexico, and the decline in silver has not, therefore, found the country entirely dependent upon its mineral exports. Railway building in various parts of the Republic has continued vigorously, and the investment of capital, particularly American, in mines, plantations, and industrial enterprises has been as great as ever, til at present the American capital alone is estimated to amount to over £100,000,000 ($486,600,000). The consul makes the following important suggestions for improving trade: "We can not afford to ignore the Mexican market, nor a country whose revenues have increased in twenty years from £2,000,000 to £6,000,000; imports from £3,000,000 to £13,000,000; and exports from £3,000,000 to £13,000,000. I would advise those who really wish to do business in Mexico to guarantee fixed salaries to agents for a year or two with the promise of a certain commission in addition when the sales exceed a certain amount. The Americans have succeeded throughout the country by paying large salaries and being well represented. We must make what the foreigner wants, and it would be well if on receipt of an order from this country the directions as to the goods required and the mode of shipment were followed absolutely. "We could do with more commercial travelers. The few we have are now almost all British, apparently excellent business men. They have a knowledge of the language and tact, which is perhaps even more necessary. Those with choice samples will always do well. No 278-03-3 "Price lists should be in Spanish, and firms should quote, as our travelers now do, f. o. b., c. i. f., inclusive. All prices should be quoted in sterling, or gold dollars perhaps better, reckoning $5 to the pound sterling. The Mexican seldom understands our pounds, shillings, and pence. To many old firms credit may safely be given, but the rule in other cases should be cash with order or against bill of lading. "Our merchants should do their best in filling orders for Mexico to dispatch the goods at once on receipt of order if in stock, or to put the order in hand immediately if the goods are to be manufactured. It is, as I have already pointed out, the proximity that gives the United States the advantage, and while that must always remain so we should do our best to reduce that advantage to a minimum. Merchandise can be ordered from the United States and delivered in Mexico in from three weeks to a month; from England, in from eleven weeks to three months, and there is no reason, unless in exceptional cases, why there should be further delay. Besides, we have the other European countries to compete with and must show at least that we can do as well as they." The following is a résumé and condensation of articles in the Mexican Journal of Commerce of August 1, 1903: Mexico has 11,185 miles of railroads, valued at more than $1,000,000,000 Mexican. So recent a thing is railroad building in the Republic to the south that one sees engines in operation that hauled the first trains that Mexico ever ran. The earning capacity of capital in Mexico is considered safe. Fully $500,000,000 have gone in from the United States, and of this 70 per cent has gone into railroads. More is entering every day. Pullman cars, huge Mogul engines, and gigantic freight cars are the rule now, where hitherto they had been the exception. Most of the rolling stock was made in the United States. If Mexico is making her mark in industrial prosperity it is because the Government was wise enough to get the railroads to give them a chance to grow; these brought investors, then manufacturers, then captains of industry, then prosperity. To-day trains run to all parts of the Republic, or will very shortly. Remote regions, held hitherto to be almost inaccessible, are being bound to the central city-the capital-by bands of steel. Ports like Veracruz are put into communication with transoceanic places. The rich mining and agricultural lands of the south are tapped till they pour their treasures into the world's markets. A mighty line is to connect Salina Cruz, on the Pacific, with Coatzacoalcos on the Gulf. According to careful estimates this road is to put New York and New Orleans 1,500 miles nearer to San Francisco than they would be by a passage through the canal at Panama. There are some who say it is to have a good deal of the trade that is to go over the Pacific. While the Panama Canal is to cost at least $180,000,000 gold, the Tehuantepec Railroad has cost about $45,000,000 silver, and will cost only a little more. The Mexican Government is quietly giving it financial aid and encouragement. The revenue required to make the two enterprises—the canal and the railroad-pay is $10,800,000 gold, against $2,700,000 silver. The saving of time is estimated at a high figure-not only the 1,500 miles difference in distance, but the slowness with which ships will have to pass through the canal are considered. [This item is hardly as important as the writers would have their readers regard it, the distance is so small.] An interesting feature is presented by the pan-American road which is rapidly reaching out toward Guatemala and is expected to form an important link in that chain of roads that is to connect Alaska and Canada with Patagonia, Brazil, and Chile. An independent line—that of Yucatan-capitalized at $30,000,000, every cent of which was raised in Yucatan, is to stretch its arms out toward central Mexico. Besides these, there are numerous roads that touch the great lines feeding them freight from remote and once almost inaccessible regions. These are mainly mining, logging, and plantation lines; but even these pick up quite a lucrative line of extra freight and passengers. "It is a fact, as surprising as it is true," says one of the writers from whose article much of this résumé is taken, "that there is not a railway in Mexico, no matter how small and insignificent, but what enjoys a local passenger and freight traffic far in excess of the same pretensions in the United States." [In this connection it is perhaps worth while to be reminded that there are over 200,000 miles of railroads in the United States, many of which were built long before any great or paying amount of freight or passengers was expected. The Mexican roads were very probably not built till the builders were fairly sure of both passengers and freight enough to pay.] Gigantic growth of Mexican railroads.—In 1873 Mexico had 335 miles of railway. Over these went 723,834 passengers and 150,473 tons of freight, and the receipts were $1,848,375. In 1900 there were 8,460 miles in operation; 10,709,462 passengers and 7,522,923 tons of freight were carried and the receipts were $49,425,478. Since 1900 the mileage, freight, number of passengers, etc., have gone on increasing. Better ballast, steel rails for iron, steel bridges for wooden, first-class rolling stock, etc., all mark the methods of the Mexican railroad management. In the face of almost insurmountable natural obstacles-up hills, over mountains, and climbing precipices-the roads have gone till the tale, when told, sounds almost incredible. BUSINESS OPPORTUNITIES IN PARAGUAY. I desire to call the attention of capitalists and those engaged in commercial enterprises in the United States to the new financial law recently passed by the Paraguayan Congress and promulgated yesterday by the President of the Republic. I inclose herewith the entire Spanish text, clipped from one of the daily papers; also a summary translation of the same. The authorities having charge of the expropriation of half the hides for exportation, which will amount to about 125,000, will entertain bids from various sources on these hides. I would suggest to the dealers and importers in hides that from what I can gather the most advantageous bids would embrace the price f. o. b. Asuncion. The number of hides may be larger than this calculation because in 1891 the total number exported amounted to 238,495, and they are increasing every year. People who are interested in waterworks should also send in their bids. The Government will negotiate a loan of $1,000,000 gold, and the number of hides expropriated by the Government under this law will be offered in arranging the guaranty. Parties interested in hides should be prompt in bidding, for the reason that the President of the Republic is authorized at the expiration of three months to arrange the disposal of them. ASUNCION, PARAGUAY, July 15, 1903. JOHN N. RUFFIN, Consul. |