change nor wish to change. Once satisfied with a certain manufactured product and thoroughly accustomed to it, they will not change except from inability to obtain it or for marked improvement in some new article, which must be clearly demonstrated. Everybody wants the best, but the improved article or new product must be brought to the attention of the prospective purchaser in a very definite fashion.

Formerly Americans came to France to purchase brandy, and even paid the manufacturer a commission for selling them the product of his still. This condition still obtains in certain quarters, but the general conditions are changed. French distillers have found it necessary to send out traveling agents to secure business for them. One of the results is that Americans will often purchase an inferior grade of brandy of a "marque" already tasted rather than a superior quality of goods which they have never seen.

Our manufacturers often expend their energies and their money in a way far from practical. For instance, I receive at this office. hundreds of circulars during the year, printed in English, describing certain articles of export. I send them to the proper dealers, but they can not read them. There are instances where I have spent days in translating descriptive pamphlets at the request of the persons here in whose hands I had placed them. It is impossible to translate all, as no provision is made for work of this kind at this Even were descriptive circulars published in French and sent out to dealers, it would at best but prepare the mind of the French merchant for a commercial traveler. The traveler, unfortunately, does not follow the circular, and the energy is, to a great extent, lost. In view of existing modern trade bureaus and associations, it would seem possible that one traveler could represent several firms dealing in very diverse merchandise. By this means the dealer here could have what is necessary to successful business— a practical demonstration of the utility of any particular product.

American exporters desirous of doing business in France must adapt themselves to the needs of the country. Their circulars should be printed and their correspondence carried on in French. The commercial traveler should speak that language. The fact that neither buyer nor seller understands the other well causes at least hesitation and delay in reaching business. The French think, and perhaps with more or less reason, that we are not always careful enough in our business methods, and, although sincere in recommending our goods, are very often not sufficiently acquainted with the qualities they possess. there are none better. of view, but the natural

We send our wares to France, declaring that This may be perfectly true from our point richness of our country has rendered us

more or less prodigal and we have not made the careful study of the economic value of certain products that has been made in France. Let us take two commodities, coal and lubricating oils, for instance. Several million tons of coal are imported annually, while the entire quantity of petroleum used is imported. The necessity of buying from another country, of paying transport and high duty, has forced a careful study in economic values, by means of theoretic computation, most delicate laboratory tests, and practical experiment. Most of the French railway companies have laboratory apparatus. for tests, not used at all by, and perhaps in some instances not known to, the shippers of the commodities.

Concerning coal there has been a woeful confusion in the definition of the terms "tout venant" (run-of-mine), “menu" (fine), etc. There is an evident and appreciable distinction between the French and American conceptions of what each considers equivalent terms. The result was that on receiving United States coal it was considered inferior to English coal sold under the same categorical name, the reason being that American exporters did not endeavor to maintain the relative proportions of large and small, not taking the French definition of "tout venant" into consideration.

While this misunderstanding is partly due to difference in language, it is principally due to disregard of the commercial customs of France. We may be able to impose our conditions when we wish to buy, but this is more difficult to do when we are the sellers. The purchaser should be put to the least possible inconvenience if we want to keep his trade. Our exporters should, as far as necessary, adapt themselves to the business habits of the people to whom they wish to sell.

There has been a large correspondence passing through this office relative to American phosphates and superphosphates. dealers insist:

Our

1. In some instances, in quoting prices f. o. b., when they should know that, as a rule, transport or freight rates on regular lines are only quoted at the ports where the goods are to be put on board, and that agents at the port of destination are generally ignorant of freight rates to this port. It is only exceptionally that agents can quote other than rates from their ports.

2. That payment be made on basis of weighing and analysis at port of sailing. This is very favorable to the seller, but it indicates a certain lack of business confidence in the purchaser, who has just as much right to protect himself by weighing and analyzing the cargo. on arrival in France. The seller may impose conditions on the sale of a necessity when he has no competitor; otherwise he should strive to please his customer. To show how far American business

caution may be due to lack of knowledge of the French language. and of business customs, take this illustration: In a comparatively recent transaction American shippers demanded payment on the basis of weight and analysis taken when phosphate was put on board in Florida. The French buyer offered payment on the basis of weight and analysis taken at La Rochelle. The result was that there was no agreement and the deal was declared off. An English broker presents himself, offers to the French buyer on the latter's conditions at slightly higher figure, and is accepted. The English broker knows of the American offer, which he accepts and orders goods shipped to La Rochelle. He has business confidence in the American shipper. The Frenchman pays more for his goods, but buys less American and more Algerian; the United States exporter gets his terms, but does less business. The evident need here is a better understanding, resulting in direct transaction to the mutual interest of both countries, but especially to the one that sells.

Our exporters, in order to further their own interests, should also, as far as their relations with France are concerned, adapt their business to the metric system of weights and measures. There is nothing more annoying to a French purchaser than to be forced to make a reduction of our weights to the very reasonable and logical metric system. He may ask for a price per 100 kilograms (220.46 pounds), and his ton, to him, consists of 1,000 kilograms (2,204.6 pounds). Other nationalities who have maintained trade for any length of time with France quote prices by this system. We should do so if we wish to please. The French merchant will quote to us his fine brass-wire twills by the square yard, knowing that thereby we grasp the matter at once. He will quote us prices of brandy per gallon for the same reason, although he buys by the hectoliter (26.417 gallons).

I believe that our commercial relations with France can be greatly augmented by a better mutual understanding of business habits and the requirements of the market. The friendliness of these relations would be still further enhanced by the total disappearance of that suspicion which owes its existence to lack of acquaintance.

No man has a keener sense of business honor than a Frenchman. Cultivation of his acquaintance by actual contact in business will dispel on both sides any doubts of the genuineness of American or French sincerity.

LA ROCHELLE, June 27, 1903.

GEORGE H. JACKSON,

Consul.

HOW TO INCREASE OUR EXPORTS TO INDIA.

I have before called attention in my reports to the necessity of having more rapid and reliable freight lines between New York and Calcutta in order to increase our trade with India.

The Bucknall Line, whose steamers sailed at irregular times and touched at so many ports-taking about fifty days in making the passage has been withdrawn, and now the only way to ship goods from New York to Calcutta is via Glasgow, Liverpool, London, or Naples, and the goods are frequently delayed a long time waiting. transshipment. Thus it often happens that they are not received. until after they are required and are consequently left on the hands of the importers.

India has been neglected by our exporters, so that out of $250,000,000 worth of goods imported annually the United States last year had only about 1.5 per cent of the trade, while the United Kingdom had about 67 per cent and Germany, France, and Belgium, in the order named, the larger part of the remainder.

About 50 per cent of the imports are cotton goods and the next largest are iron and steel manufactures. In both of these the United States should be able to compete successfully with any other country.

If a direct line of steamships were established between New York and Calcutta, sailing regularly-not less than once every month, and oftener when the trade increased to warrant it—the passage not to be more than forty days, so that importers could rely upon receiving their goods at specified times; and if our exporters would put active, capable men in the field to exploit the markets of the country, our trade would be increased many-fold within a very short time.

There are no restrictions on trade in India, and there is no reason why our exporters should not compete successfully with those of the United Kingdom, especially in cotton goods and all manufactures of iron and steel. The only obstacle is the want of more rapid transit for their goods and more determined efforts to secure the business.

Such a steamship line as suggested would be sure to receive return cargoes, as our imports from India are now large and constantly increasing, amounting to about $35,000,000 last year.

There is such an opening in India for the expansion of our trade that I can not urge too strongly that the necessary means be adopted to secure it.

CALCUTTA, June 17, 1903.

No 276-03-3

R. F. PATTERSON,

Consul-General.

DATA COMPILED BY THE BUREAU OF STATISTICS.

India's commerce is as interesting to Americans as it is to any people except, perhaps, the Indians and English. When it is remembered that India ranks sixth among exporting and tenth among importing countries, the volume of her trade may be partially measured. Last year India's exports were valued at $403,000,000 and her imports at $264,000,000. Of India's $264,000,000 worth of imports, 36 per cent were cottons. Next on the list of imports are iron and steel products, which form 12 per cent of the total. Third in importance on the list of India's imports is mineral oil-5 per cent of the total imports.

Thus, of India's imports more than 50 per cent are of a class that might be called indigenous to the United States, and the greater part-fully three-fourths-of the entire list is made up of a class of articles successfully produced by and exported from the United States; and yet our exports to India amount to less than 2 per cent of the imports of that country.

The United States imported East Indian goods in 1892 to the value of $24,773, 107 and in 1902 to the value of $48,421,218. The exports thither from the United States in the years indicated were $3,674,307 and $4,621,876, respectively. The most important imports to the United States from the East Indies are: Jute manufactures, $10,000,000; jute, unmanufactured, $4,000,000; hides and skins, $8,000,000; gums, $2,000,000; etc.

India's growing importance.-India has advanced from $28,000,000 in imports in 1840 to her present $264,000,000; her exports have increased equally fast, or from $51,000,000 in 1840 to $403,000,000. Of the total foreign trade in 1902 ($667,000,000), Great Britain naturally supplies the largest part. Her share was 64.5 per cent; the British colonies, 5.3 per cent; or a total British trade of 70 per cent. Following Great Britain, but a long way behind, come Austria-Hungary, with 4.8 per cent; Russia, 3.9 per cent; Germany, 3.7 per cent; Belgium, 3.7 per cent; China, 2.2 per cent; France, 1.7 per cent; and the United States, 1.4 per cent. In 1899 the United States supplied 2 per cent of India's imports; in 1900, 1.7 per cent; in 1901, 1.6 per cent; and in 1902, 1.4 per cent. Of India's exports, England's share was not so large as her share in the imports, while the share of the United States therein was very much larger than her share in the imports. Of the total exports of India. in 1902 ($403,000,000), Great Britain took 25.1 per cent; the Straits Settlements, Egypt, and Ceylon, 13.9 per cent; China, 14.5 per cent; Germany, 8.4 per cent; France, 7.3 per cent; and the United States, 6.9 per cent.