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The development of Canadian trade with Latin America Allen, George Ashwell 1927

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THE DEVELOPMENT OF CANADIAN TRADE WITH LATIN AMERICA by George Ashwell Allen.  THE DEVELOPMENT OF CANADIAN TRADE WITHLATINAMERICA  gEORGE aSHWELL aLLEN  A Tfattiifl tufenittod far th« Dcgrta o* Mftttmr of Artt l a th«  Department  Soonoralo*  Th« University of British Columbia  April - Utf  m wmwm p* W^PIM mm ira itxv* AMEMW PACT A  nagoa I  Introduetion.  1-18  8  Market Aaaftralg and Investigation.  19-83  0  Adrartlaing far Foreign Q-adf.  84-64  4  DUtriltatiau (Thai—11 la Foreign Trade,  65-91  1  Peeking for Bxpert.  92-108  6  Shipping end 3fclp*ing f » i n .  100-120  7  financing the Foreign 'Brad* of Canada.  126-137  '  PAH? B Chapter 0 "  •  Canada's Seonmlo Outlook,  138-152  Sptolf io Trade of Oamda with tho Latin Aaerlean RepttbUee.  153-225  Bibliography.  I - IIX  •»  CHAPTER I  Washington it quoted at saying, on the occasion of hi» farewell address to tho toerieaa pooplot •She rulo of conduct tor us U regard to foreign nations is, in extending our commercial relations, to hews with thorn as litUo political oonnootion as possible. So far as wo here already formod engagements, lot thorn bo fulfilled villi perfect good faith*  B o m lot u* stop.*  This vaa tho attitudo of  tho beotlssii nation towards foroign trado for aJtaeat a century. tlrao of Washington, hewewer, it not mar time*  Tho  Progross has marked  all industry sad tho domestic past smst giro way to tho international fwt|BPt« There is fundamentally no dif foronoo botwoon international, or what is often tensed foreign tsade , and domestic trade*  Under  normal conditions both represent a private merchandising activity which is carried on for profit and consists of the purchase and sale of commodities.  In international trado the objects of exchange are sent  from one country to another, they usually cower greater distances than commodities mewed in domestic trade, and on their way to and from markets they must eress political boundaries of states. These facts make tho oarrying on of foreign trade a more complicated pursuit than domestic transactions.  They necessitate the consideration of the habits and  the tastss of different peoples; their language and business customs; differences in currency, weights and measuresj import duties and customs regulations, fluctuating foroign exchanges and the many other details peculiar to export financing.  • 2 •  With all modern states absolute national economics, self-sufficiency and independence are utter impossibilities, and it it neeostary that we take cognisance el these facts*  The economic  interdepenltttee of a U nations Is a living reality and this makes the pursuit of foreign connections and foreign trad* the dominant aspect In the lives of many citiaens of every nation. Ho longer should the Canadian manufaetnrer ho satisfied to produce for Canadians alone, and to restrict hit sales to the confines of Hit Bominioa.  Canada needs  certain foreign row materials and msoraf aeture* which the It unable herself tt predate , hut these etmmodltlst tan only be obtained by exchanging ttjeojep OJwawMayttjtjeV&te W^tjp^ jpF^nneMy'O/w  JljMe • ^PeT  4ftt*^tje t t t ^ M  Atetrding ttftwall known expert manufacturer, It national insurance*"  X  "export trade  Foreign trade offort to the Canadian  and manufacturer and opportunity for greater independeneo  producer  from cyclical  business eendltiene, profits* and* in a state* for greater service. Hit foreign trade will toad tt make him independent of doneetie conditions, ft speak colloquially "his eggs will act all he in one basket*" At similar conditions do mot prevail all the world over at the tamo time ha will ho ablt If hit trade it properly diversified, tt withttand a period ^t financial depression without reducing hit ttaff or curtailing hit output*  Hit increased production to meet hit foreign orders will  keep hit business running smoothly even la times of domestic panic. But foreign trade should never he entered into tpatmodioally and once acquired oust he carefully nursed.  1  Although a polity to do business  O.S. Cooper "Foreign Trade; Markets and Methods."  page 12.  m  '  •  '  •  '  •  •  '  !  wherever business can be $*m, and in any market of the world, furnishes an effective trade insurance, this business trill not look after itself. The value of foreign trade has not, until recently, become apparent to toe average Canadian or American exporter* Too many firms have been content to take a dip into foreign trade only when business was alack In this country or wives some particular opportunity appeared abroad. Saws* fIras have made no intensive effort to maintain their trade eenmeetien thus wen, hut have dropped them as easily as they acquired thee** to devote their attention possibly to mere lucrative or less aempstitive market** Sale i s a very serious indictment against Canadian •rating methods and ceases foreigners to lock with apprehension upon apgadlan testations and Canadian attempts to enter the market* me failure to cultivate markets ease entered has caused Canada to be termed •uninterested" in foreign trad*.  The damage done to Canada's national  name by such policies i s inestimable, and i t i s no wonder that with sush a background the Canadian exporter of to«day finds i t extremely  But with ail this, trade with foreign countries beckons to us and every method should now be made by Canadian exporters to extend their relations and secure a larger percentage of toe world's huge total of thirty billions of dollars of International trade* "Ho other business i s so broadening, no other aspect of affairs so draws a manufacturer or merchant from toe uninspiring humdrum rut Into which he Is a l l to apt to fall*  In conducting business with China, with South Africa, or with  OkU.. h. 1. M r t t « „ . » l „ . with » « . e d i t i o n , and « . * . . * ! « . . " 1*  1*0* Rough. "Practical Exporting" Chapter 1 Page Z.  * 4 *  Si learns a good deal about the nations of the earth, their peoples, their commerce, their ways of doing business, so different from our ways. Hi learns new aspects of business which oould never be acquired through domestic trading. He beoomes aoquaintod with ocean shipping, marine Insurance, international banking and exchange. "The suocesful exporter will become, must become, a broad-guage business man in the highest •ens* ef the teruu  The man of small or petty ideas cannot be successful  long or continuously in doing business with the biggest and best merchants #1 ether countries, la competition With the Ablest manufacturers  H'eiuyers of the nerli.«  and  l  tginfitm to SImyten 8* deeper the first principle of suceeseful business abroad fa what Oenfueius used to sail "mental hospitality* the "faculty of projecting your Imagination lute the viewpoint (sic) el tie* people with whom yen are to deal*" fhe exporter will be facing e variety ef condition* differing from these to which he has been accustomed and must, therefore, keep in mind the men to whom he it selling in order to be successful, these conditions will largely be the outgrowth of dissimilar historical developments ot countries. Preindices, traditions and peculiarities must be understood and catered to, so that the eld m a U m • whet is good enough for us is good enough for them* must never be followed in expert trading. The price of success in the foreign field is meet careful and constructive preparation. *8ffleienoy will demand the establishment ef •xpert policies to insure that under the same circumstances identical steps %  8.0 Hough "Practical Exporting1' Chapter 1 page 2.  *  • 4 will be taken, the tame quotations will be made and favors granted, net attar extended and time-wasting investigation, but as a matter ef course, Bxpert policies will make aartain a wall-balaneed development. Uarkets bill aw sought and seoured in orderly sequence, and the future) will nwwtr be) handicapped. Lagiaal markets will not be neglected, and 1he tempting but umriae galas opportunity will be examined by rule and raJested by ruls, net accepted and regretted. •  Footholds gained by  sunk poliaiss will be quiekly strengthened lata strongholds far future development and expansion. It can be stated with emphasis that suooess in torslgn trad* will depend upon the earreet formation of aueh export peiiai** and net upon governmental subsidy or paternalistia legislation. "Oat-rich-quick methods are not the ones t» pursue in foreign trada, mm latter has a technique ef its earn which must be mastered. Th* exporter must study bis market and build for the future. He must net treat bis foreign department as a damping ground far what he eannot easily dispose of at borne).  Ha must took business intelligently, for no  longer d a w foreign trade) some uueelieiasjd. Ha must be ready to make a substantial investment -H time, money and energy. The results will amply justify the expenditure." * One of hie eklef requisites of success Is knowledge * speeiallzed, expert knowludge* xn international trader should take as his fundamental maxim, that the mast valuable information is that vnioh is acquired en the ground and personally by one who will pertlolpete in the planning of a telling fsmyMfii- ** 1  ia 9 n l  y in this way that local oanditions aifasting  waiter F» iyoan "Export Merchandising" chapter 5  2 Herbaet Savay  page IS  "Principles of Foreign Trade • page 4.  *  • s• tales can adequately he studied. travelling  To aoquire this knowledge either a  representative or some high personage in the export  department should, if possible, be dis patched to the market before the first sale is made*  He will best be able to learn the character of the  people, their ways, their business conditions, tastes and habits, the psychology and struoture of the market, as well as the soujsoe and extent of demand and supply, of existing competition and the possibilities of trade expansion. Personal knowledge of credit standing of foreign clients will always be found to be more Valuable and reliable than second hand knowledge. This personal knowledge, supplementing the second hand knowledge acquired at hone, should enable a manufacturer to draw final plans for an active commercial campaign.  All suoh data should  be filed away, easy of access, and should be revised at frequent intervales for only in this icy can they be kept up to date so as to be of value in meeting the changing needs of the Changing times. Although success in foreign exporting is largely dependent upon the Judgment of the manufacturer in selecting the proper market and method of distributing his commodities, much else besides is necessary, and this v i U form the subject matter of subsequent chapters. Here let me state that many mistaken impressions pervade the minds of the Canadian exporters.  In the first place might be mentioned the matter of price.  It is felt by a great number of Canadian manufacturers that they are net in a position to export bemuse they cannot meet foreign competition, foreign prices*  This Is only in part true.  Although to-day there are  M a y markets known as "price* markets, where cost of the article alone m  determines possibilities of sales, there are far more numerous markets la which a second factor enters Into consideration.  This second factor  «• .6 •  is quality and it is with this weapon that Canadians should make most headway in capturing foreign markets. Reputation and reliability of the article count for more in most markets than the price differential. In every city in the world high priced goods and cheap goods are bought and sold. Buenos Aires, Valparaiso, Bio de Janeiro or Lima are no different in this respect from London, Paris, New York or Montreal. Always there are seme merchant who want the very best, irrespective ef price, while others sell only the very cheapest.  As we cannot hope  te compete with certain foreign countries in the sale of low grade, cheap, tawdry goods we should specialise en the sale of the quality product.  Canadian quality goods can compete successfully In any market  ef the world, as witness the sales of Canadian rubber manufacturers in every country of the glebe, of Canadian footwear in Prance, of Canadian machinery and agricultural implements in Argentina, and of a Venezuelan flour importer who beasts that the well known brand of Canadian flour he handles is the most costly in the market.  All that is necessary is to  demonstrate that the quality of the product Justifies the price asked for it*  The reluctance manifested by some Canadian manufacturers to  seek foreign sales for their goods* because their goods are not "cheap" or because they fear European competition is lamentable.  It is quality,  set price, that builds up business and it is in these goods that Canadian firms excel and have made their footing firm in foreign markets. He buyers of experience outside of Canada should ever be made to look to Canada for cheap and trashy goods.  It should remain the ambition of  every manufacturer who enters foreign fields to maintain the standing and prestige of the Canadian nation in this respect. The slogan that "Canada sells quality gecd** er "flood goods only" might well be adopted by all Canadian extorters*  *  a* f m.  In connection with this, a very interesting editorial from the pen of M . C J . North appeared in "Commerce Reports" of February 18th, 1924. Quoting from this editorial he says "Some time ago a certain manufacturer of Europe deoided to go into the foreign field.  The article that he  produced was a certain type of patented knife. The chief selling points in Marketing this article should have been the quality of the steel, which virtually gi»ave it a guarantee of hard and long service, and its attractive appearance*  at the tame tins the selling price of the knife,  due to advantageous conditions for manufacturing, was lower than that Cl ceapctitors ef ether Burepaan nations. The manufacturer, therefore, instead of mentioning the price surely as an added reason for purchasing, and stressing the quality features, chose te base his entire selling campaign en the lew price cf the article* large foreign business*  By this method he obtained a  However, due to unforseen circumstances he was  later forced to raise' the price to a point slightly higher than the knives (sic) cf similar designs offered by bis competitors. happened.  The inevitable  His customers abroad* because they had been 'sold* on a price  basis and had not been taught to recognise anything favorable about the knife except its price, immediately turned to his competitors." "This analogy applies to nations as well as men.  Certain  nations have let themselves become known in the eyes of the world as countries which produce many articles of indifferent quality and low price.  In their attempts to capture foreign trade and foreign marlsts  they have always put a premium en the price factor. Another nation in particular has become known for the excellence and quality ef its handiwork and its geeds tell irrespective of price. The goods of the former  "*  nations ere new losing ground to those of quality and this factor may be  - 8 -  expected to become truer and truer as the years pass. not price that builds business.  It is quality and  The aheap goods are also the first to be  affected by tariff restrictions and irhen the nations can no longer sell these goods and are forced to turn to the manufacture of the better made quality goods In order to surmount the tariff barrier, the name earned by them as being suppliers of enoap goods sticks and does inestimable harm."  Canadian manufacturers, then, will be best repaid by confining  themselves -to a policy of emphasising quality and service rather than price, and they stand a good ehanoe of making permanent customers of importers who formerly bought elsewhere.  "Oood value lor the money" is  lust at sore a claim to favor abroad as at homo. Another frequently recurring misapprehension sf foreign trading Is that foreign exporters give long time credits while Canadian firms art not willing to do so. This is an entirely erroneous belief, but more will be said of it is Chapter seven. Here let me just state that European houses do business sn very much the same basis as do Canadian firms, on a sane polity of credits of sixty or ninety days. Only in a few instances such as with the pieee goods trade and machinery trade are excessive credits granted. Where excessive credits have been •ranted in the past by one parV.eular European country the effects have in nearly every instance been disastrous.  Trade might be won at the  outset but it was soon lost through the firm passing into the receiver's hands*  But, with all this, there is no universal rule that can be laid  down in regard to credits. Canadian "short term" credit transactions give a moderate amount of elasticity to sales, yet embody a comparatively high degree of safety. Such terms are the universal ones in international trade and are more often than not demanded by our European competitiors.  - 9 -  No conservative or successful business house in any country will grant extended credit to a new or unknown customer in any land.  At times,  however, because of some temporary embarassment extensions may be necessary to well known firms. Such extensions are entirely reasonable and safe and must not be confused with the erroneous claims that our competitors extend credit facilities over long periods.  Such is not the  usual practice anywhere, to that Canadian firms adopting the principle of Short term credits need not have any fears that by so doing they will b* losing sales in foreign markets. Rather are they merely adopting the universal means of carrying on foreign exchanges. Although the absence of an extensive network of Canadian branch banks abroad and Of Canadian sailings to every port of the globe militates against the extension of our trade, it is not nearly so serious as many would like to make out*  Canadian exporters are fortunate in  having branches of our' chartered banks in most of the important countries of the world and these, together with their correspondents and agents, will give Canadian exporters adequate facilities in all parts of the world. We are in a much better position than were the American exporters prior to the passage of the Federal Reserve Act in 1913, yet American trade by that time was fully established everywhere.  Branch banks abroad certainly  aid in the development of a, nation's foreign commerce, but the lack of them does not necessarily prevent it. Foreign banks will always be found to be willing to handle Canadian transactions.  Thus this matter is only  of minor importance when considering the handicaps of the Canadian exporters.  •»  -jo-  in the matter of shipping facilities we are confronted with a much more formidable obstacle.  It is certainly true that Canada, at the  present time, lacks the shipping and sailings to some parts of the world that certain  enthusiasts consider necessary, but it is also true that it  Is not profitable business for a ship to carry tonnage only one way, tJndor the ordinary laws of supply and demand such facilities can only be secured when Increased business will warrant it.  It will be necessary  then for Canada to import eaaaodities from, as well as export them to, all parts of the world.  It is only through sueh a reciprocal development  of trade that the proper number of failings from Canadian ports can be expected.  At present we shall have to rely upon Sailings from New Tors  or Sail Francisco to those ports whore direct Canadian sailings have yet been instituted.  not  An added expense to the Canadian exporter will  naturally bo entailed by this prooedure but not such a great expense as to bar him from foreign markets.  This method will have to bo embraced until  sufficient cargo tonnage will make direct Canadian sailings profitable and justifiable.  That this proeass is rapidly taking place can easily  be shown txnm the increased, and more diversified, sailings from the ports of Montreal, St. John, and Vancouver each year.  Many ports that in 1924  and 1925 were inacea'sible to Canadian exporters via Canadian ports are now connected by direct sailings a*d the number of those inaccessible ports may be expected to decrease year by year.  We are less dependent  On American and foreign shipping now than we ever were before, so that the old assertion that the lack of Canadian sailings to carry Canadian goods abroad is throttling our foreign commerce is not the bugaboo now that it formerly-was.  • 11 -  Finally I shall consider the criticise that the "small" Canadian manufacturer is unable to compete against the huge foreign combines*  This argument is the reason given by a great many Canadian  manufacturers for not attempting foreign business. A prominent eastern Canadian business man has stated fro i his experience that there are hundreds of articles made in Canada which can be exported to advantage, and at very little more expense titan it takes to sell the same goods in Canada* He has stated that the majority at least of the goods produced in Canada can be exported to advantage*  The small manufacturer  has certain advantages over "the huge concern especially in producing speelal goads exactly to the requirements or customs of the foreign purchaser.  It may pay the small manufacturer to turn out these special  foods whereas the large concern may mot consider that it could spare the time or machinery to deviate from its standard output* Another factor that must be considered is that only a few industries lend themselves to huge standardised production*  In the  majority the "small" concerns predominate* sometimes organizing for export into "pools"or "combines." This is a possibility open to Canadian manufacturers and if they do not wish to consider it they have only themselves to blame*  Combines have not proven entirely successful in  export trading hut their possibilities should be considered by Canadian manufacturers.  The fact that the "small" manufacturer is not debarred  from competing for foreign trade can easily be seen if the proper statistics •an be procured.  Through a research recently instituted by a committee of  the United States Government this fact was admirably set forth*  They took  examples from almost every industry and showed that whereas one large concern  • 12 •  might ship $5,000,000 of agricultural machinery, a dozen smaller concerns together might ship upwards of $10,000,000 of the same, much of it in direct competition with the machinery of the large concern, and in the same markets.  It was effectively shown that the small manufacturer was  act being displaced from foreign trade and that he need not fear the competition of his larger brother*  Both appeared to be thriving and the  fact that the large concern is already in the field need not prevent the smaller exporter from entering the tame field and securing business. If tails it true of the small American concern in competition with the larger Aaerisan none era it should alas bo true of the Canadian firms. If the small American firms can secure trade la forsign fields surely Canadian manufacturers of like capital and approximate producing costs can also secure markets for themselves. Foreign trading is not limited to a few large concerns, but is at the book and call of all Intelligent, keen, far-sighted manufaoturers.,  It is time more Canadians recognized this  and took their proper position amongst the manufacturing and exporting nations of the world. The promotion of the expert of Canadian manufactured goods depends entirely upon the efforts and the activity of Canadian exporters. They will have to got out and secure trade by their own efforts, give servise and "nurse" the trade when once It is secured. To entrust sales to the Initiative of foreign agents and connections is no longer sufficient. There must be an aotive interest shown from headquarters, else the foreign agents will grow disinterested and their energies will lag.  "Impatience  for quick returns, ignorance of conditions in the foreign field and the lack of sustained effort have hindered the successful building up of foreign  - 13 trade in many instances.  Obtaining a first order is often the easiest  step in building up trade. Upon the satisfactory execution of the order may depend every future possibility.  Upon the selection of customers  and the arrangements made for the thorough cultivation of a territory and the supply of its requirements may hinge the profits, as veil as the volume of business, to be obtained."  1  Export trade to be profitable  must be permanent and growing every year; initiated orders must be repeated for years to come* Successful trade relations depend largely on full and complete confidence between buyer and seller.  This is particularly true in foreign  trade where contacts are largely confined to the medium of correspondence. Confidence and reputation,are so closely related that the one depends upon the other; reputation gained and maintained begets confidence.  Canadian  foreign traders who have attained success in overseas trade have earned it largely as a result of their applying the Golden Rule to business, by treating the foreign buyer as they would like to be treated if the positions of seller and buyer were reversed. Meticulous attention to details; willingness to arbitrate any differences that may arise; an eagerness to assist, these are qualities that establish the prestige of the seller and give to him the confidence of his customers abroad.  If he is to be successful this confidence and  reputation so attained must uivays be lived up to. Let me now briefly turn my attention to Canada. Here we have a young country, very sparsely populate!, but with an extremely bright future. Canada is at the moment on the threshold of a great industrial expansion and development.  Closely allied to that great country to the  south of us, ve are feeling the spirit, the urge, that made that country one of the greatest nations the world has ever known, and it will not be 1  B.C. Heugh "Practical Exporting" - Chapter 1 - page 14  V .1  • J* *  surprising then if in the next few decades Canada finishes her transitstage and emerges definitely as an industrial nation, emerges into that higher plane of economic development, as the great German, Friedrioh List, would have us believe* As he claims that "Manufactures are the basis el domestic and foreign trade, navigation, and of improved agriculture * and henee of civilisation and power." It may be of extreme Interest to s«me to learn of recent Canadian statistics taken from the CanatfUttJfat&rBoo*.. The fast that Canada i s rapidly emerging as an industrial nation ean be gleaned from these fasts.  In 1910, out ef her total exports of  $101,396,129, 51.22 were raw materials} 18.12 semi-manufactured goods, and 3Z.1t wholly manufactured goods. By 1914 Canada's position was respectively, out ef a total export Of $478,997,928, - 63.32i 10.12; 28.72.  In 192S, the last year for which I have been able to get complete  figures, Canada exported $949,298,837 worth of goods, and out of these 44.72 wore raw materials, 16.22 were semi-manufactured goods and 39.12 wore fully manufactured goods.  That i s , by 1923 Canada was exporting  approximately $600,000,000 of goods either partially or fully manufactured. In that year exports of this nature totalled 53.32 of total exports compared g with 83.72 of exports of the same nature from the United States.  Surely,  then, Canada ean no longer be classified as an agricultural nation, but must bo given Its place amidst the industrial nations of the world. In aggregate value of foreign trade Canada normally holds fifth place, being exceeded regularly only by Croat Britain, the United States, France, Germany and occasional3y by India and Japan. Exports  for the pail *  1928 figures. Exports $1,328,537,137 - of these 15.12 were partially manufactured and 40.22 fully manufactured.  - 15 deoade have fluctuated around the billion dollar mark, but have lately been over the billion and a quarter mark, -the figure for the claendar year 1925 being $1,283,098,795.  Imports for the same period have been  well over $800,000,000 annually, with a tendency of late to approximate to the billion dollar mark.  Thus Canada's total trade may be placed at  ever two billions of dollars yearly.  This i s oertainly a huge Jump from  the 1900 figure of $372,699,039 and over double the pre-war figure of 1913 of $1,085,264,449.  But with a l l t h i s , Canada i s not what I should term  a diversified trading nation.  Although she trades with a l l the nations  of the earth, her trade i s by no means balanced.  The great balk, toe  great a bulk, i s with two nations, Great Britain and the United States. For the fiscal year ending March 31, 1924 - 75.7? of Canada's total exports went to these two countries leaving only 24.3? to be distributed among the ether nations of the world, and of this percentage a large proportion was absorbed by the British Dominions and Colonies.  Thus  Canada may almost be said to be trading with only two peoples, the inhabitants of the United States and those of the British &npire.  Her  position, though, i s materially better than i t was ten years ago and much better than at the opening of the century, when the figures were 87.8? and 91.3? respectively. But Canada's trade la gradually becoming more diversified, and our trade connections are stretching out and being strengthened in a l l quarters of the globe*  This thesis has been written to point out  possibilities for Canadian trade expansion In that great, undeveloped *  For the fiscal year 1926 they had risen to $1,328,531,737 $926 percentage going to these two nations was 74.6? a drop •» of 1.1? from the previous low figure of 1924.  il  - 16 -  continent to the south Of us, South America-  Others may harp upon  Canadian trade with the Orient, with Australia, or with the Empire, but I shall confine ray attentions strictly to Latin Amerioa. This one field in which Canadian trade is almost negligible but should be larger. I have selected this field becauso few Canadians seem to know very muoh about it, or have evinced much desire to trade there. The feeling has been that there are easier markets at hand so why bother ourselves in trying to trade there. The result has been th t for the fiscal year 1924 Canada exported to South America Only $16,655,120 or 1.5? of her total exports.  Of this amount nearly half went to one country, Argentina*  Compare this figure with the huge total of $315,000,000 exported to South Amerioa by -the United States in 1924, «nd which was increased to $409,000,000 In 1925* These figures comprise 6.9? and 9.2? of the total experts of the United States for those respeetive years. For the year 1924 7.30? of all Great Britain's exports went to that field. It oan easily he »een# then, that Canadian participation in the foreign trade of South Amerioa is extremely low and stands in need of encouragement and extension. It is for this reason that I have selected this field for my work and by pointing out many tangible possibilities for theoexpansion of specific commodity sales in South Amerioa I hope I may evoke in the Canadian manufacturer a desire for a greater knowledge of the trading opportunities, and for an increased activity in the commerce, of these Latin American republics. *  Our exports to this market are growing steadily. In 1925 they reached the figure of $20,606,000 • or 1.9? of our total export trade. In 1926 tills figure was further increased to $27,400,000 - or 2.1? **  - 17 -  In general, ray analysis of the subjeot v i l l be:  £ASL4 Chapter 1  Introduotion.  *  1  Market Analysis and Investigation.  •  %  Advertising for Foreign Trad*. "  sales letter  "  eiroular letters  "  samples  *  tradt marks nswwpapers  "  4  •  export papers and Journals  "  eatalogues.  Distribution channels in Foreign Trade. direot to eonsumer through eorrespondenes and mall order houses. Direst to retailers and wholesalers. "  Through travelling salesmen.  "  Branoh offloss.  "  Agents.  "  Ixport commission hotaes.  *  Ixport merchants.  *  Through oooperativs efforts.  "  Through oonneotions In London and Hew Tork^  • 18 -  Chapter  5  Packing for Export.  *  6  Shipping and shipping papers.  7  -  b i l l Of lading.  -  marine insurance polioy.  -  ecnraarslal invoice.  •  consular invoice*  Financing the Foreign Trade of Canada.  PAH? B Specific trade Opportunities In the Separate Republics of latin America.  i  CHAPTER  H  MARKET ANALYSIS AND INVESTIGATION  "Suae*3» in foreign trade, like suoooss in domestie trad*, if dependent upon a careful analysis of the possibilities of the different I markets which the manufacturer wiahea to cultivate" It is absolutely essential for the eaperting manufacturer to select the proper market and the proper marketing method 111 order to prooure the greatest benefits from hit foreign trading. For this» speeifie, statistical data of all markoto will It asessaary ao that a comparison i m bo mado between then and deductions aj to market possibilities drawn.  One of the best motheds of  acquiring the needed information regarding a foreign market it to have it investigated by a eompetent observer*  This method will entail considerable  expense, however, so that it is usually deemed advisable to subject the market to a preliminary survey from home, before sending the personal invsstlgator abroad. Through such an analysis many of the outstanding fasts which directly, or indirectly, affect the demand and supply conditions in the market will bo brought out and such localities as can not be of any interest to the exporting manufacturer, and in which there is no reason for oonduitlng peritonei investigations, can be eliminated.  Through such methods  many valuable fasts may be learned and costly mistakes prevented.  From such  data a manufacturer could learn that, because of domestic production and tariff barriers, Chile and Venesula are extremely poor countries in which to try sad market shoes, Brasil a comparatively poor market for Canadian *9  1.  Litean - "Essentials of International Trade." chapter 14 - p.227.  • 80 *  flour, while Argentina imports many foreign shoos and Colombia procures most of nor lumber from abroad* For this proUminary investigation at home many sources of information are available.  For the Oanadian exporter twb very good  government publications are easily procurable, the Oanadian MCommercial Intelligence Journal" and the American Commeroe Reports." Both are weekly publisatlons containing a wealth of invaluable information and no eawrprislng exporter should he without the services of these publications. me "foreign trade opportunities" listed in the back of each have beta sum fesm twit teratd "oath preai»is" by large exporters* Similar public-  fir snteifio raarkets. Besides these, much data can always be procured  •aft bosks* All data possible should be procured, sorutinissd for possible inaccuracies, exaggerations and inconsistencies* and then carefully filed away for future referenow* It should be renewed at frequent intervals and supplemented by say personal knowledge or dealings that the exporter may subsequently have* She Information secured in tills way, and at a comparatively slight cost, will supply the manufacturer with mush material on which to onset his eanaiuoiens.  Amongst the many fasts which such an investigation  will bring #ut will be those of supply end demand, puroh*4$ng power of inhabitants* tariff harriers» sise of field, methods of doing business, terms to he extended, scrapstlticn to he met* The personal Investigation that might well fellow would include the polities! conditions in a country, the nature and stability of i t s government, the degree of protection i t offsrs to foreign enterprises, the commercial law of the land and how  -21 it is administered, condition of transportation faoilitiea, state ol banks and other financial institutions, and the credit ratings of prospsotlve clients in the country. All these are matters that should he thoroughly looked into before even a dollar's worth of goods is said in the market* This will entail considerable time and initial east without, seemingly, being of such use, but as it prevents future losses it has time and time again been proven to be a highly profitable  Many firms consistently refuse to spend a sent en Investigating possibilities in for sign teuntries.  They consider it money thrown away.  Tet la order to develop a business in the toe* market they spend many thousands of dollars before the business beeemss profitable. Why, then, is the same principle refused to foreign countries, and salesmen sent •at wholly unprepared and with no knowledge whatever of conditions! Sash hapheeard and slipshod attempts to do business with foreign countries are from the outset doomed to disastrous failure* In the future the most successful firms will be those whose departments of trade investigation are the best organised and who, before any salesmen are sent, will thoroughly study the situation. The starting plaoo in analysing the problem of marketing Oanadlan products abroad is the study Of foreign demands. These demands oaa he shown by the quantity sales ever a number of years it can bo shewn whether it is permanent, insistent, increasing, or fiokle. Mush will depend en the fasts discovered here for if the demand for the product is oaprisious then this market will be a poor one in which to try and create sales. There is also the potential or latent demand, the  possibilities of creating a much larger demand than exists through extensive propaganda or through a slightly lover price. Along with tills might veil be considered the eventuality of a slight increase in price and the effects of it* Would the demand fall off sharply or would a substitute be readily acceptable! The vise exporter will investigate all these facts and will be prepared for any possibility. Closely allied with the demand side of the problem is that of the else and nature of the population and iti purchasing power. It is ranch more important to know the buying power ^t a population than almost any ether one faot. Mere population figures alone mean little. For instance, if is of small Value to the exporter to know that the population of P O S H is about 4,000,000. He is interested in knowing, however, that of this population 80% art Indians, $2% half breeds; 2% negroes and 1% Chinese, the nature of the population tells him much. It should tell hla that the bulk of the population of Peru has a lev buying power mud therefore a very small demand for manufactured products, the total purchasing power of this market would not be any in excess of a fair sited Canadian or American city. In making an analysis of the foreign market, it is not enough for the Canadian exporter to know the general purchasing power of the foreign country* Be must know especially the buying power and the peculiar class he is desirous of reaching. He should be able to estimate approximately the price which he can command for his specific product. From this he fan form some estimate of whether the development of the market Is vorth while or not*  In the special report "Chile as a Market  for Hardware," Issued by the Bureau of Foreign and Domestic Commerce of •» the United States Government, the folloving significant statement is modi regarding the buying power of the population of Chile.  ,yf"  -  9$.M  "Being a new country and having many people with little money, Chile uses much that is cheap and of poor quality, in which the European manufacturer almost control the market*  • not only oan compete easily but can As the higher quality is demanded the  opportunity for American competition increases rapidly, and the future for the articles made In the United States seems bright, always provided that steps are taken to give the buyer the thing he asks for and business facilities comparable to those afforded by the European exporter."  This  statementi Intended for the American exporter, is of equal Interest to Canadian* end should give them as optlmistio conception of the future possibilities el "this 3euth American Republie. Another factor demanding attention is that of special conditions and prejudices is the market* These special conditions may necessitate seme adjustment in the product exporter, but of this I will say more later. The problem then becomes not so much, can X export, as, will it pay me to change my machinery in order to cuter to the desires of this market?  Prejudices affect sales to a large extent and if an export  firm cannot get around or ovsreome these prejudices it need not expect sales in those countries* An example of the type of prejudice that oannot be over some is that of Green wrappers in certain parts of China* This color is helleved to he a sign of impending misfortune and as no amount of propaganda seems to be able to remove this superstition, articles wrapped in green are deemed to the retailer's shelf* On the ether hand, until recently there has been a distinct prejudice against tractors in Peru* This has now largely been overcome through consistent demonstrations of their utility and by expensive propaganda. Prejudices  play such an Important role In Influencing demand, particularly in backward countries, that they should never be overlooked in analyzing the market for sales. In certain markets there is a distinct dislike lor the products of certain nationalities but as I have benn unable to find that any South American country is prejudiced against Canadian goods I need mention it no further here. The fact they* purchases usually go to the country controlling the investment situation is one of major Importance in undeveloped covin tries, and this is essentially true of Latin America. The old maxim "trad* follows the flag" is set nearly so true to-day as "trade follows the dollar." taw country controlling another nation's investments is certainly in & favorable position but this last applies only to purchases of such materials as railroad equipment, rolling stock, construction machinery, Oil well and mining machinery, e t c  Any company  dominated by foreign capital is going to procure its supplies as far as possible from the foreign shore from whence the money came. Thus if the market is already monopolised and controlled by a competing creditor nation, it might bo questionable in the mind of the exporter whether ho can successfully develop sales of such products in that territory* The other big factor to bo met with is the source of supply. This will toil the Canadian exporter the foreign competition he will have to face. The amount and possibilities of local production should be studied. Ordinarily it will bo easier to meet foreign than domestic competition. The prices, at which the imported and the local product toll | will have to bo considered. The exporter will also have to have, complete knowledge as to the best methods of supplying the market, what is the host means of Importing into the country. He will have to  - 26 * consider what units of supply are most easily handled* An examination of the methods employed by his taore successful foreign competitors Kill be of great value to any exporter just entering a market.  After  examining Hie source of supply of goods offered for sale in any market the Oon&dian manufacturer must determine whether there i s anything in ths tariff lairs or commercial treaties or transportation facilities union would effectively debar nits from competing there-  As for as  l a t i n America I s concerned Senadians compete with other nations en Hut same footing in regard to import duties that must ho paid. Wo have not «is tarn transportation faoUities to this market that other mtiiaals havo but the natire and the ext«nt of the handicap can only 10 dctarmiaad by each flsnadian exporter for himself. Thia handier, howivar, i s decreasing each year as newer and mors frequent direst tailings are being inaugurated from Canadian ports. Ho above analysis will be incomplete unless i t i s supplemented by data which presents the broad economic background en which the fundamentals of trade rest*  She economic and social conditions change  and supplementary data must be continually gathered in order to keep up-to-date a market analysis once mads. It will be necessary to know each market separately, i t s fashions and manner of doing business.  In  selecting a f i r s t market to enter the safest rule to Observe is to enter only Ifeese markets where the demand for a particular product i s already established sad clearly defined.  I t s extent, quality and quantity «an  thsa be dotsrraittOd in advance and the inexperienced exporter will not have the added burden of propagandising a Virgin market in order to make the inhabitants familiar with the kind of articles he i s selling.  • 26 * Out other matter should hero receive the attention ol the Canadian exporter and that is the feasibility of adapting goods to market requirements. The policy of trying to force on foreign buyers what we think they ought to have instead of meeting their wishes and making the goods they want is an extremely harmful one in foreign trade. There is no speedier method in killing trade than that one*  Toe "take  it or leave it" policy Of British and American exporters has been severely criticised the world ever, but Canadian exporters ere no mere famous from it tana are our trade rivals. While adaptation ef the product is desirable and is usual ly conductive to an increase in salts, it is sometimes impossible and often ait profitable for a manufaeturer to entry His adaptability to meet all requirement* and ill criticism. Canada has followed closely in the wake Of oar groat industrial neighbor to the south so that large scale production of standardised goods is one of the distinguishing characteristics of our factories, there is heavy expense and less of time if any change is made from the routine schedule, As a rule, our manufacturers are willing to make changes in order to meet requirements if they are Satisfied that the volume of business will repay them.  Otherwise  they cannot well depart from their routine and must lose trade to those concerns and these countries that use proportionately more hand labor than wO do and Who can thus adapt with greater ease and with comparatively little additional expense, their output to the demands of the buyers in different parts of the world.  1  ;  1. Llfcnan "Essentials of International trade" chapter 14 - p.233»„  * 2?,«• If the demand is sufficient it is usually advisable for the manufacturer to adapt his product to the demand of the market. Where only a alight deviation ia necessary from Canadian standards this should be complied with. Where definite speeifioations are submitted by the foreign buyer differing slightly from the Canadian standard never Ship the -Iff* common te ourselves as then the whole consignment may e» useless te the foreign purchaser. The same may be said of ^^•^•1|*jje*SBjes|^pi  parts*  *w^eflawsi**se7vSi Jf  ^sussf ^(pwea;  I^SA^PS>S>  ee*ff  tr^"  »*•*•"•stipwS'  •s^^^*  mF"^^e*#  ****ww  * SP*  ^JF^^^  II the customer neglects to order duplicate parts the manufacturer save  be swe is ask* a favorable impression en the mind ef the importer. A refusal en the pert of Ww*m^^pip^  a<e^m^w  e^^ai^pme  ep^w^p  jjj^^ew WJ^US  *RIF  me*^p  * me^F w  ewe^m w  eseW".F**PW  e» ^F ^fcwem » ^ f c J  w ™e> ^y  *  ™ e  ef tttsn considtred foreign markets in any other light than as places where they could occasionally dispose Of goods unsalable for ens reason er another at heme* However, the value of foreign trade as a permanent source ef demand is beginning to be recognised by an ever increasing number of our manufacturers, whe are willing te meet reasonable requests ef our overseas customers. The rational mode of procedure is to study the requirements of a given market and if possible standardise the product te suit these requirements. Find cut Just what the consumer wants, learn how near the product comes to It, and decide whether in view Of the extent of the demand it is practicable to meet the want. Unless changes which would be found necessary can be made it is beat net to attempt to enter the market.  ••  * ZB '•• Business men have now come to realise that a successful export business i s not to be created overnight and that in order to develop it* carefully evolved plans must be put into action. Such plans cannot be made without much serious study, not only of the conditions prevailing in latin America, but of the merchant's own business in relation to them. In order to develop the market i t will be necessary to expend large sums before any noticeable returns are received.  Specific Information in regard to the market i s indispensable. Hatarelly the first requisite to the understanding of the  possibilities of 3outh America i s an acquaintance wllto the geographical features of the field.  Be attempt to develop & trade with Latin  fcetrUe. should He made without a, thorough Study of the physical conditions prevailing there, i t s people, trade, distances, topographical features end meens ef transportation, the strategic business points, etc.  These  facts nan easily be learned by a thorough study of the countries in whioh i t i s proposed to develop trade. In oonsldsrlng the adaptability of one's product to special market requirements, tar* E. 8* Filslnger la his valuable book, "Exporting to Latin Asarioa" sets forth a doten questions the answering of which art of extreme importance to every exporter* these are:* 1  Whloh ltema among Our products can be exported to Latin America!  i  Osn they be marketed in all the Latin Amerloan countries or Only i s certain ones!  S  Are they adapted to the needs end requirements of a l l sections of a country, or only to a certain limited Held therein!  4 flan they be sold Just as fBff 8S§ now made, or are certain  * Z9 * ohangea neeeaeary In shape, six©, appearance!  If ohangea  are eeaential oan we make them! 9  Are the labels, finish, color and elkher details the moat appropriate tor the market!  6  To what classes el the population oan they be sold!  7  If no demand already exists oan one he created!  In that  •ate what la the heat method to pursue! •  Will ear preduet compete successfully with foreign products of a similar character!  i  Key do the tariffs in Latin American republioe affeet the sale of our product! Haa the European manufacturer any advantage In this respect!  If so, how can it he overcome,  and what means must he taken to meet any peculiar tariff  reetriotiena! 10  Does the matter of freight or transportation charges atfeet the poasibilities of aalea!  11  Are there any local conditions which would make It impoesible to plaoe our product in certain countries or distriota! In that eaae, what are these!  13  What la the moat desirable field in which to make a start!  So considering the foregoing questions, the manufacturer will have a foundation en which to base his study of the export situation, and ef the adaptability of hie goods to foreign marketa. But the ability of a merchant to create an export busineaa is dependent upon important factors ether than a careful study of the problems already mentioned. These factors are ef equal importance and*  * 30* and should have careful thought.  The earnest business man who believes  himself in a position to export to Latin America must determine where to make a start*  Latin America is so Vast a field and the difficulties  of properly effecting sales to all parts of it are so great, that it is highly desirable, in making a beginning, to enter a market that offers the least amount of difficulty. Only careful study and a consideration of all details will enable the beginner, with no expert knowledge, to decide where his efforts will be productive of results in the shortest possible time. Uhe tens conditions will affect this market just as they da la domestic trade and may be roughly outlined as fellows:  1  Si** of the field  2  Methods of doing business  I  terms to be extended  4  Competition to be mot  8  Immediate prospects and future possibilities  6  Organisation of the exporter  7  Sales methods  The business man must determine the most advantageous methods of making sales in Latin America. He will naturally consider direct sales or agency arrangements in relation to payments. Under certain conditions it may prove more desirable to deal with a general importer who undertakes distribution and is responsible to the manufacturer for all payments, than to sell on credit to individual small buyers. Export commission houses where maximum sales and efficient representation can i  be assured slay likewise prove the best means for certain fields.  • II *  Exportation direct to individual merchants ma/, in other countries, offar tho greatest opportunities. An important factor in export business is the subject of terras. To the beginner it would be preferable to sell his merchandise direot to responsible merchants on terns averaging  sixty days, suoh  as prevail in markets like Cubs and Mexico, in preference to marketing then through an qgeney In Colombia or Bolivia at four to six months.  their payments, chiefly because of the agricultural situation of the ,countries and to the foneral methods of doing business. Competition la anether important faster,  in torn* fields it  will be found to bt less keen than in others. In a oountry developing as rapidly as Latin America a virgin territory may be the one to approach. But competition should not nooocoarily prove a deterrent.  It will  frequently be found that because of the educational work done in other fields sales can be made much more easily there*  In suoh Instances  competition is rather a boon than a handicap to sales* lbs farseeing business man, aooustomed to look upon expenditures In the development of his business not as a dead expense but as an investment, will take into serious account not only the immediate prospcots in a given territory, but more particularly its future possibiSdMeo.  It is a recognised fact in foreign markets that much  introductory missionary work must bo done*  As this is a condition  faced daily In the domestic field it should not frighten the manufacturer who seeks foreign business,  A country which does not offer brilliant  Immediate prospects may, nevertheless, because of the character of the «, work to bo done first, afford the finest possibilities for the future.  - 32 -  If a conscientious and earnest effort is made, and if it is decided to establish a business on a firm foindation by intellligent work, then the prospects of large immediate sales may well be put aside in the knowledge that the future is full of promise. Here it might be well to mention the essentially intimate and personal contact necessary for sales to Latin American customers. This should be a matter of careful study in seeking Latin American business and due regard to the little niceties of commercial intercourse will greatly help sales la that field*  Too often in the past this  market has been considered as a unit by foreign exporters who fail to realist that tastes and customs differ in these countries and that national individuality is quite as dear to the Argentinean and Chilean as It is to ourselves. By far the greater amount of all this data necessary for the Canadian manufacturer to carry on business in Latin America can be secured at home. When, however, all such information ha3 been collected a good plan is to send an intelligent representative into the field for a certain period to get acquainted with the clientele and familiarize himself with local practices before real operations are begun.  At  the moment such a procedure may seem to entail an unjustifiable expenditure of time and money, but «hen one considers the advantages to be derived from a proper beginning, it no longer appears in such a light.  It must be realised that there are no "get-rich-qulck" countries  in South America and that only by steady and intelligent effort can reasonable returns be expected.  If an experienced traveller, equipped  with catalogues describing the products and giving adequate price information, is sent out to oover the more Important markets, direct contacts with reliable South American importers may be arranged which  #»  * 33 -  in the end will bring in substantial returns.  Such a method should  be thoroughly studied by all firms actively interested in the market. It is only after a oareful analysis of all the factors outlined in the preceding paragraphs that the Canadian merchant will bo able to determine which field offers the best opportunities.  Where  one country seems to hold forth great advantages because of low tariff and little domestic eompeJ"ilon, it may be adversely affected by peculiar local conditions or by inaccessibility*  In the same way tho  reverse may be exactly true of markets that on a cursory examination would sots to be poor ones to enter.  The most minute study and  analysis must determine the course which the manufacturer should pursue.  Too much stress cannot be laid upon the advisability of  such study.  *  <  - 34 -  CHAPTER  in  ADVERTISING FOR FOREIGN TRADE  after subJeoting the different world markets to a careful analyais and selecting thoae bo thinks Boat suitable, the exporter must study the boat moans of developing them, of acquainting the Inhabitants with hit produota. Naturally what is neoessary is some fera of advertising.  "This la praotioally the only method for reaching  the foreign buyer diroet at relatively small oost and it has been the means by which nearly every Amerloan manufacturer now exporting on a largo scale mado his first beginning.•  this quotation is from the pan  of a foremost Amerloan exporter and appeared in "Office Applianots" of not many years bank* Wo muat, then, analyse the different forma of advertising and discover the proper methods to be employed in exploiting the different markets.  In the larger and more advanced republics with a  high degree of literacy amongst the population most, if not all, the methods adopted in Canada may be used.  In other markets only one typo  of advertising may be at all feasible. As the object of advertising is to introduce products, and the fins that soils them, to the buying public, it requires groat art In ita composition because of the number and variety of people to whom it is addressed.  Certain media will  only roach certain olasses of people so that a different method la neooasary for Other classes.  It is to ascertain what these different  - 35 -  media are *n& to what general class of people they eater that this chapter has been written* Result* from advertising, foreign as veil as domestic, must primarily depend on the copy, to far as enquiries go* Actual business will almost Invariably depend en subsequent correspondence with prospects thus discovered.  la order to stimulate enquiries  from abroad it is evident that the advertising copy must contain a catch lift* of some sort to attract the attention of the kind of buyer wanted,  Xt is the article advertised that is important, not  the name and address of the maker. The illustration of the article Will iften attract if strikingly tut out. Too much copy is had and nothing it to ho gained by boring the reader with minute details of the goods advertised. At it is impossible to relate everything In an advertisement it is usually desirable to tell only enough to stimulate the curiosity of the prospect and oompel him to write for further details. Hence the advertiser's shrewdness and Ingenuity io called into play to seleot those few phrases or sentences which will be most offeotive and which the space at his disposal enables him to use in striking form*  Highly technical copy should  never be used at it is not understood by foreigners. The same applies to literal translations. They are usually meaningless for it is the "idiom" that counts in every language.  It is never  vise to quote any price in an export advertisement as this only loads to confusion. It .being very easy to settle the matter of price in later correspondence. Advertising for general publicity it extremely good*  As *f§orm of introducing goods, or a salesman,  •*» ss * it may be very effective*  It "makes your goods less apt to bo  refused when offered" and this is, after all, the great thing in selling* In general, advertising nay be divided into two channels, oonsumer advertising and dealer advertising, the purpose of the former being self-explanatory and that of the latter to seeure agents, inquiries and orders from largo foreign importers. Consumer advertising usually oomprisos oorrespondenoo, oiroulars, the press and outdoor billboards* Dealer advertising it restricted " more to the export Journal, the export editions of trad* papers, and the export catalogues, although consumer advertising may bo dealer advertising at the same time. 1 shall B O W briefly speak of those different methods. The medium accorded the highest rank la export advertising it the sales setter. Shis is the greatest single moans of developing foreign markets and the adage that "every letter should he a sales letter" might vol! bo adoptod by more Canadian exporters than heretofore has been the case. Every letter, no matter on what subject or hew trifling, should convey to the reader the Impression that here is a very good, ambitious, Canadian firm, proud of its position and product and one whoso manufactures he might well take pleasure In locally distributing*  Such a lotter will always procure  the maximum results from any prospect, She drafting of a lotter to a foreign correspondent requires the utmost attention and care. As its purpose is to break down the barrier which distance hat created between buyer and seller, it will  *  be necessary to present such facta as will secure a favorable reply and at the same time draw out from the recipient of the letter useful information. The letter must be clear and forceful in argument, precise in detail, yet courteous in manner. The spirit of the litter must at all times be friendly, for a letter which is impersonal or stereotypted Is cold, and coldness is an atmosphere in which it is hard to transact business. The cold impereonallty of i3ie circular letter often repels mere than it attract* foreign buyers. It is always best to have an intimate 1 " note aaeeBpmy any circular it may be necessary to send*  printed advertisement, it should be more carefully studied. One ^^wP'^e^Bpew w^m^&^t *^pi  ™Seiw ^Pa^BOtaa ejpw?^_*i ^eiep• sjnPp0>^e***anes^p  iree*wssiwsaA^S  *(F w ™a ^ V W ^ ^ » B  ^OF oy^^BseWiSe>ep^ne)n  firms is the use of terms In the address and at the end of the litter which are familiarly used by the people of that particular foreign country* Many if these terms and expressions may appear extremely foolish and sentimental to the Anglo-Saxon but as the omission of such expressions may spell doom for the particular firo no pains should be Spared to learn the peculiarities of your clients. "The consideration of the point of view of the people ti whom one is writing is extremely important, for the latin American, as Will as the Oriental, is not inclined to be Impressed with the shirt* crisp, and often abrupt notes of the Amor loan, Canadian or English business man* A certain amount of polish and coreainy is as necessary in a business litter to these nationals 1  Kidd - "On Foreign Trade, Chapter 10 - pp.288.  m 90 m  as would be a personal address. To ignore this through any obstinate prejudice regarding our own ways of doing things is to be shortsighted and is usually a confession of ignorance not easily overlooked by a person of another nation who is inclined to itady those small pilnts with eare,"  l  2h#re are many,  many examples to be found on every hand of the tremendous damage a single poorly handled export letter can create. In dealing with latin Americana it will always be found necessary to address them in their own tongue*  Although  - many of the largo businoas Hon lift speak Snglish fluently they consider that to reoeiVO a letter in Our language is a slight upon tholr native Spanish and they deeply resent it* If English is to bo the medium of oorrospondenae permission should bo asked Of the firm to address them In that manner. Then there is no •"  possibility for 111 fowling between the firms. As the Latin American is almost the exact opposite of the Canadian in temperament and ideals he attaches much more importance to letters than we do. TO him letter writing is an art and ho is very careful about the stationery he uses.  The  use of proper paper is often overlooked by the business men of Canada as well as by those of the United States. The paper should bo neat, impressive and dignified reflecting credit to the exporting firm. The ftea*s letter-head should appear but it will not bo found necessary to translate this into Spanish. The export manager* s name may Very profitably appear in the letter-head and  certainly the firm's cable address and names of codes which may be employed in telegraphic correspondence should not be omitted. Where the letter has first been written in English, translations should always be very carefully done in idiomatic Spanish, (or Portuguese for Braiil) not in literal Spanish. An example Of the ludicrous position a firm may be placed in through a literal translation came tc my notice seme weeks age* A firm was desirous of selling automobiles la a Latin American Republic but the extensive advertising they did in Spanish told the people , that they (tin automobiles) "were worth no more than motoroyoles." Tnis if euly one example of the glaring inaccuracies that may accompany any literal translation. The use of highly technical words and descriptions is to be avoided except in export catalogues and certain expert trade Journals. Personalities* and above all offensive impertlnances, must be studiously avoided in carrying on our foreign correspondence. Imperative phrases show extremely bad taste* At beet Canadian letters are not fluent enough, showing a look of respect to the mind of the Latin Amerioan, so that we must be even more careful in our language and correspondence than is necessary for most Europeans, who come closer to the southern temperament then do we. A signed letter is regarded in other countries as having all the formality and sanctity of a contract.  It is for this  reason that the stamped signature leaves a bad Impression and it w i U invariably prove advantageous to nave a responsible head of the fins sign* Form letters are instantly recognised and should  * 40 * never be used.  Svery promise made to the Latin American must  be fulfilled no matter at what cost. We are expected to abide by our written word so one can easily see the necessity of leaving no misunderstanding in the minds of either party. Another point that should be borne in mind is that mail time to South America Is still slow which, will obviously necessitate longer letters than at heme* We must tell the whole story In one letter, even if it rune to four or five pages, for our correspondents are net mind readers*  It is not the bulk or  * quantity el the letter that counts, it if its quality.  Everything  depends upon what *• say *hd how we say it, net on the number of lines to vhleh a letter runa.  Short sentences are good but care  must bt taken to develop our arguments consecutively and forcefully. A postscript may lend some special emphasis to some desired point. The eld newspaper rule that the first sentence should be such as to attract immediate attention is a good one to adopt in any correspondence.  Then develop your arguments adroitly and clearly*  It we say "steel, let us mean steel - net sheet iron*" We will now pass to a brief discussion of circular letters and follow-up systems*  All of the remarks just offered apply as  well to the circular letter*  I am here going to deal not so much  with indiscriminate circularisation as with special cireulariaation of selected names*  The Value of the former is extremely doubtful  in Canada and it may almost be said to be negligible in Latin American countries, where a comparatively small number of people are literate - and Interested*  Add to this the conservatism of the Latin American **  - 41 merchant, with his great dislike of the oold and impersonal, and the futility of mass solicitation is readily  at^n.  Any profitable ciroularlsation in Latin American Republics must be done on the basis of selected lists*  Desired  names of snail dealers, etc., may be secured from many quarters and to those dealers interesting circulars may be sent*  Xt  might bo well for the Canadian manufaoturer Just entering the field to restrict his efforts in circularising, to the larger firms with whom he especially wishes to establish direct connections. Dssjiit follows that each market to bo circularised should have as ewreful a Study at possible*  Clrcul&rlzatlon is Impossible, of  eourse, under certain exclusive agency agreements*  All circulars  should be rigidly tested as to efficiency for-It is only in this way that any approxlmato estimate of the Value of the circular Can be made. All foreign circulars, especially to Latin America^ should, as far as possible» be individually typed for X have already suggested that foreigners are apt to insist on being personally addressed*  To obtain the best efforts, therefore, at least the  appearanoe of "fora" should be avoided.  This will leave ample  room for the ingenuity of the exporter and the successful firm will find that time spent in devising means o f overcoming this;;handioap  will be well spent* The follow-up system, so extensively employed nowadays, finds a fitting placoiln Latin America* A list of selected prospects should bo made up and the letters addressed to them should be  - 42 * individual as far ad possible*  Sufficient time should be allowed  -to elapse between litters so that they mar ef festively do their work. Otherwise they hint of baste and impatience and will become a nuisance. The arrangement and composition of follow-up letters vary* but a v«ry  good principle is to emphasise separate selling  advantages of the goods in each letter. The following series has been suggested by Mr. Wy»aa, who si a reeognixed expert in this  "Jitter I  Description of product, terms, prices, references  *  A  Profit on resale.  *  t  Sales assistants offered  *  4  Quality and exclusive advantages.  "  8  Summary with special offer.  "In planning such «series the enclosures, and literature aooompanying under special cover, should be designed to carry out the idea of the letter itself, not bo a cause ef distraction from the letter. Thus, with the initial letter a condensed, catalogue and list of references as enclosures would bo exeellent. With the second litter emphasise profit on resale, and a circular proving this would be a tangible addition. Material for your circulars in the dealer's interest, specimens ef shelf, counter and window displays or a detailed plan for introductory work would go far to prove the argument of sales assistance on which the third letter is based.  * 43 *  Photographs, diagrams and a circular of consumer testimonials will back tip your olairas for quality and exclusive advantages made in the fourth letter, while for the final letter a complete catalogue, order forms and if possible a special introductory offer at » nt* prise will usually add to the written appeal*" The follow-up system, like everything else, has its proper place in foreign advertising hut it cannot here be evaluated.  It is cnly after a careful check has beta made of  all that its value can be estimated and this the exporter must determine for bJaself« Mention might well be made here of the value of samples in export advertising and trading.  They are tangible evidence of  the excellence of many products and are very successful salesmen. Many products, especially bulky and heavy ones, do not lend themselves to samples so that other methods must be adopted by the exporter of these products*  But where good samples can be had  of the product, they have proven extremely efficient in aiding sales.  Distribution should be made to salesmen, agents, whole-  salers, retailers, and consumers, but extreme care must be taken with the last*  Indiscriminate mailing of samples to uninterested  parties costs money and is productive of little result*  It is  for this reason that distribution amongst the ultimate consumer should be mere cautiously undertaken than amongst selected middlemen.  1  B#0» Hough "Practical Exporting" - chapter 6 - pp.147  • 44 *  The value of "sample seta" Is considerable. They should be mailed to likely dealers and placed by them in conspicuous places. Permission should usually he asked before samples are despatched, because such a high rate of duty is assessed en them in many countries that many dialer* do not want them. Unsolicited samples to these dealers will cost them money ami will prejudice them against the Canadian exporter*  The samples, when sent, should be carefully wrapped  and attractively dene up, accompanied by plenty of descriptive material for the dialer te distribute. the sample is net e*eluoively a consumer mk dealer weapon but nay be used te convince both of the value of the product.  Its  rial Value though is to convince the dialer of the certainty of profit which the goods will bring upon resale. Samples offer the argument of demonitration and no volume of description can compete against It. "It can he laid down as a safe rule that if a product possesses any quality which a sample will demonstrate, and if the cost of placing the Sample in the hands of the distributing trade and the ultimate user is not prohibitive, that this method of selling should be employed. The Cample is a tangible sales argument and though speechless its presence answers questions. There is no one way In which to build world trad* more rapidly than by judicious use of samples. They lend themselves admirably to combination with the efforts of salesmen, correspondence and advertising and are the finishing touches to any paper preposition." For a manufacturer who wishes to create a permanent business in a latin asccrlian country a suitable trade mark is of the highest value. m  1  W.y, Wyaan  "Export Merchandising! ohap.M p#286.  m 4 0 •* Those should b o usod o n all literature, circulars, invoices, envelopes, catalogues, e t c , for their value lies wholly in constant repitltion, A good trade mark has a selling power of its own for it "assists advertising and builds Sales with the spontaneous fere* of its suggestion and appeal."  As a trade mark is of  extreme value in a sales campaign it will be necessary to protest it from plraoy in foreign lands. Whereas great attention is given by most Canadian firms to the protection of their mark here, little thought is given to similar proteetion abroad. Trade marks will not look after themselves. Canadians are lax in the protection of their trade mark, chiefly because under our lav % right in a trade mark is obtained simply through continued use without any further steps on the part of its originator. Thus, when entering upon the sale of their products in foreign countries, they see no need for taking speoial actions to protest their trade mark there. It Oannot be emphasised too strongly, howeveri that while in a limited number of countries the right to a tirade mark is recognised as belonging to the first user, in the majority e  of foreign markets this right is recognised as being vested in the person who first makes public claim to the mark through local registration* Shis is true of all Latin American countries and any unscrupulous person there sen register any trade mark and procure sole rights in Its use, holding the legitimate owners up for blackmail. It is in this way that many Canadian and American firms, with increasing sales in Latih America, have Suddenly found themselves confronted with the fa«^ that they can no longer sell their goods In certain countries under the old "Commerce Reports" May 4, 1925 - page 262 1 Bernard Koslokl - "Advertising Value of Trade Marks h • • *  . • w ^ ( i WiShwS) • S B S ^ P J S ) •awPWSrS/  i  \  • 4S *  familiar mark, or that in order to do so they must pay a aum to some scheming trader.  Thus,la order to avoid piracy and secure title •  to the mark, registration should he applied for in the name of tha real owner aa aeon at oommeroe in that country la contemplated. As a trade mark must help salea It must he ane that strikes tha purchaser*a mind and imagination*  He is the one to he reckoned  with, his tastes, hia temperament, hit underatandlng must he considered. Many, If net mast, of ear Canadian trade marks will be found inappropriate far nee la Latin America because they are either meaningless or • tea hard ta pronounce.  In such a ansa the purchaser there may avoid  baying the goads, if others af the Same kind please him equally aa wall, or also ha may resort ta describing tha appearance of the product by soma distinguishing feature, such as a colored band or illustration, This procedure, of course, makes for easy substitution. tha greatest need ef trade marks in Latin America la simplicity.  Particularly desirable is this when appeal is to be made  to the masses of the people*  A pictorial design which has strong  Individual features should be selected.  The natives became familiar  with that trade mark and invariably call for the article with that distinguishing feature, refusing to accept any other if that one can be procured.  It is in this way that the conservatism of the Latin  American can be eapitalited. It la safe to amy that in the great majority of eases a new trade mark should be adapted for use la Latin America.  A pure  translation af any Oeasadiaa mark is almost always predestined to failure.  • 47 -  Tht most of our trtjdt marks art oatohwords, fanciful word combination*, or slogans, and those do not load themselves to translation,  It it  advisable to have tat trade marks embody tht same significance ia Spanish at ia English, aad this tan only bt dent idiomatically.  Ont  spetial pitfall might bt indicated here. Words in which tht letters "W" or *K" apptar should nevtr bt ustd as these letters do act appear la tht Spanish alphabet.  Vivid Or "load color combinations are tht tats  most apprttiattd by Latin Americans.  Combinations tf carmine and gretn,  black tad yellow, or blue and white, havt often proven effective. Ihta once a trade mark hat been adapted and plattd ia use It shtuld ajutgr bt chaagtd, since a change arouses iramtdiatt suspicion aad rtstntment and Salts will bt adversely affected. A good, Itgally protttttd trade mark possesses genuine sales and advertising valut ia South A,erita, where advertising is a comparatively new devtlopmeat. The trade mark, te a large extent, must gather its twa momentum aad establish its own popularity.  Renet a wise  selection or adaptation of the trad* mark, where that appears to bt necessary, it the first step in the direction of profitable Salts. For tht purpose of propagandizing your goods in South America titt medium most universally adopted and the one giving the best results is the press*  In many of tht Latin American countries it is the only  method that will bt productive at all. It is said that the South American reads only his newspaper and that they (the newspapers) art rtspoaslble for tat molding of stntiment to a far greater extent thaa that known la other parts of the world*  Especially is thtir power great  among tat gentry. Sat ptttnt power of an advertisement ia the leading  daily paper of the country can easily 1)0 seen. The market should be carefully studied as to Sales possibilities before any advertising campaign is commenoed, but onoe this has been embarked upon it will be well to remember that,  1  The advertising campaign must be reasonably continuous.  S  The original advertisement should be written in the native tongue and not translated from English.  S  Hash country should be handled by itself.  *  the choice of media should be given great ears.  f  The manner of presenting the advertisement should bo the subject of much thought and care. Along with all this it will bo noootsary to novo local knowledge concerning such subjects as the conditions of the market, the population, its buying power, and thO kinds of publications which are most naturally adaptable to the traits and tastes of the people one wishes to impress*  Very close to the priss in procuring results in South America, especially as a means of dealer advertising, are the export papers and Journals of the more advanced industrial nations.  In planning  an advertising campaign for foreign business the Canadian manufacturer may well give careful study to the opportunities presented by these Journals*  %n the early stages of American export activities those  publications wore amongst the pioneers in foreign publicity.  The  foundation of many flourishing export departments has been laid by  «,  * *t •  advertising in auoh Journals la ike opinion of suoh a wall known authority as Mr. A. J. Wolfs* Theee experts have not boon duo solely to mere publication of advertisemente in these perlodioals but also to the efforts mads by the publishers to interest I* tin American businsis men in the products of thslr adrertlsers. Sinse there are far, if any, Canadian Journals of lids slroulation in foreign fields it will be nccoscary for Canadian finis to use the better American journals.  There are still "any menu!eeturere who are Just beginning  pes*  S™  wmmsj*plp> 9 #  ejejjjmjfls™  m mem *sssm  vemmy  JpsemmamemCjle* SJJ  Vjuries*  viaeSjA * * w  w*»  * < w H  J W  smee>A»ss §  both tensral and specialised, offer en excellent media not only for • w ^ VMwCsp  ^lr  iww  ™«eaj|^GBj ms^twrneesiCje) ^ey  we) e^We>r**WPIsjjP  ^me^^  • wsr  s)W*>^sTeVc>om  w emtUMm^^ ^F m  ccev  maw^Ae*  ^ap^p'^Okiese/ w a  ti^c w  SIAVV  A WC»  Maniac* »*mk«c^i  liwe^p,l*Sc^ee»en,m/  ^p.^^^p/ew^ w  XpmeeF'W'^SHBp^ep •^a^p^^tse^  •jawm  w am^a^m  ^••v***  ^a^^'Wr M I  ^F ^b^a^a  building is fully recognised by the exporters of British and German goods. A single German expert paper is reported as carrying approximately nine hundred advertisements of different German manufacturers in each issus. This is a large number and shove the relative importanoe of this medium, at least in the eyes of the German people. These periodicals should be intended almost solely for foreign circulation and need contain little ec" interest to our dome.tie popuiulatlon. Their purpose is to appeal to the foreign purohaser of cur coeds eat cc we should address him In his own language and in hie gen manner. Data should be eeeured of the circulation of the respeotiwe Icumalc in the field, and ef the analysis of their distribution, to enable the exporter tc determine the meet valuable publication to himself.  - so -  Sheflta.fiof the modern export paper can aid its advertisers in many other ways than this. It will have on hand for its clients a special list of buyers in foreign markets* It will likely have a separate bureau for the purpose of translating foreign letters into English and for converting the letters of the exporter into the idiomatic language of the country of destination. The staff as well will be experts in the preparation of advertising for foreign fields, knowing what aj.?eols to the domestic inhabitants and the best method Of setting Ont this appeal. They will also be able to supply credit ratings and shipping* packing and marking information. The use of export Journals and paperc should bo with the collaboration of other means of obtaining trade. The value of osrrospondonoo and circular loiters is frequently enhanced if the manufaeturer also advertises in a reliable export Journal of wide Circulation. In the preparation of the copy few* those Journals frequent changes of illustrations are very necessary and all space should bo used in tho most intelligent and solentif ic manner possible. A rational use of "reason why 4 arguments, in addition to good illustrations and effeetlvo translation* will be productive of tho desired results* Facts relating to the soiling points of tho different articles should _..,..., « • * * • • ' •  bo strongly emphasised. Tho prime essential is to win the. buyer's confidence and this cannot bo done when sensational or extravagant statements arc made. Scattered or infrequent adverticmonts in those Journals should never he used, as tho occasional insertion of an odvertisraent is almost certain to result in less* This fact has been  m  • SS *»  •o thoroughly established that many journals refuse to accept contracts unlets for a definite length of time, usually a minimum of six months.  1  The advantages to a manufacturer of an advertise-  ment in such Journals while trade in that country is being developed i  is indisputable. The constant appearance of the manufacturer*a name in Journals alroulating in Latin Araerioan proves of both direct and indirect value* All enquiries from this source, no matter how trivial or insignificant, should be carefully cultivated and attended to for few tan accurately gttage the source of the Inquiry.  One can safely  say that one oan never tell when "Bit Oaks from little aeorns may  One faitor of majasine advertising that if frequently overlooked If the Canadian and American exporter is that of local advertising in foreign fields* Shis method can he particularly good as a means of consumer advertising*  Some of the better papers for  such a method in Latin America are "La Prensaj" "La Haei.cn)nMLa Bason" andTlus Ultra" circulating very widely amongst the better class of readers*  It is absurd of course to even think you can advertise your  goods locally until they are on the market and available to the consumer. Unless your goods are on hand local advertising will be sheer Waste and the Latin American will not be caught a second time in the same trap* So connection with this means of advertising a very good statement appeared some years ago by Mr.  F.B.A. M O S ,  then foreign  advertising manager of the Studebaker Motors Corporation. He Said in *>  1  E.B. Pilainger "Exporting to Latin America"  chap* 17 p.272-3  -safari "American manufacturers are slowly but surely realising that when they have sold goods to merchants abroad they have only taken the first step In building up a permanent business. The merchandise mast he moved rapidly off the counters and I leers of our foreign distributors, just as It must in this country, and as local newspaper and magaxlne tdvertislag in the Baited States assists in the rapid movement of merchandise, *# the seme kind of advertising abroad, properly conducted, predates satisfactory results*  She use of local  fsreign media, therefore» is essential to the proper development and securing of increase, in profits from American expert business.B There is tat last method of advertising for foreign trade that 1 wish to magt mention of tad this it the export catalogue. "St think ef the expert catalogue merely as a condensed card index of products and prists is a great mistake.  It is of primary importance  to consider tat expert catalogue as a salesman and act as a necessary evil tf the non-productive class, A handsome expert catalogue may bt of only pasting assistance to the salesman's personal attack, but it it frequently the attention-arrester, the desire-oreator, and the aetlen-cempeller la expert sales based on mall campaigns*"  l  The preparation of catalogues by Canadian manufacturers and dealers for the use of foreign buyers Is a matter of much importance and one that should be studied from *vwf  angle. If the subject  matter of a catalogue is not clear and unmistakable it will be of little value to the foreign buyer. He is act in a position to afford tilt time to trite to the manufacturer for an explanation of a confusing detail. I  W«F» Wymaa  "Export Merchandising" chapter %* * p.204  * it *  The effective catalogue for export trade la on* that will span the distance between produoer and consumer.  It must give to  the consumer the exact picture of what he wants and every minute detail as to hew to get it.  Its chief function is to make buying  easy and so it oust convince the purchaser that he can obtain the goods he vents only from the publisher of this catalogue.  The  catalogue Bust create desire, must be a question answered, and should increase the salsemen's efficiency by substantiating his words in blaek and white, For these reasons the catalogue must be e sales maker and net an Illustrated price list.  It must be dominated  by that one purpose - te sell. As Mr. Thomas A.Wilson says "A mining engineer in Bolivia or a sugar planter In Cuba cannot always go te an agency shewrocsu  The catalogue giving him the moat complete and  detailed information will receive the order. The type of people appealed te must be remembered in revising a catalogue, as an engineer is Interested in portability and ease of working, while a merchant pays attention te packing, price, credit, and time of delivery.  Bach  is interested only in the results to be obtained in using the article 1 and the conditions under which It can be used." Since the first thing that the catalogue should do is to invite perusal, the sever design, paper, and cuts will be found to be of primary importance and much time and care should be given to them. The Catalogue ghould furnish the prospective purchaser with an accurate Impression of the exporter's personality and of the desirability of dealing with him.  It should be a tangible proof of the ability of m  I  T.A.Wiloon • editorial in "Commence Reports" of Sept.l, 1124  . •:«• 84> * the Bttunifaoturer to export well.  The importer will admiringly  contemplate the well-bound and. well-arranged, export catalogue. From it he will unconsciously gather an Idea oi the personality of the exporter» and as first Impressions are frequently lasting ones it is extremely desirable to sift a favorable first impression. The export catalogue serves several Very important purposes ss^sO'  "SffS>TP  e*ewt ^H^piisjipec  e»^p*tee*™s»  ^s»*s  SSJS*SP<-WPOJO»  <ej>s»  tfswe* e a t s t /  s*w  «fc»t  V A V I  sp*w^w^fc~y  ••teia  u *  in creating pro speeds ia virgin territory, and if it precedes the ^•Sp^Bst.if ^ w  e^spss/V'  Sp  W ^ ' ^ S T /  •f^sj^j^^KewiP^SPsJf  ^'^T ^  •^^^•ejes*^ff#ewp*  wsws^^asiBt  V I  ^*,e> M^SWCBIVSB' tws»w  *^V ^s*S a*^e^ ^ ^ r '  wweiejsn ew^ewP** wie%w^»# e  "SJMei 4a*s)e«^s» w  •  ^s» esii*^  A v  • w as> W A v^asw •  St » U l serve either to open up direst coercm lection with the asuwftstwrwr or else i t will serve to obtain business indlreatly throwgh orders fro* export sc«saisjdon houses. Possibly i t s greatest servlee of «JU i s to aid dealers in placing duplicate orders after initial •nmrstiatts have bean made. The catalogue should contain neat illustrations and accurate descriptions of qualities. All. descriptions muat be extremeJy ascurate and honest for further orders to follow trial ones* Ths grtat principle, as in letter writing, i s the differentiation of the goods* the emphasis plated on thtir individual quailtiec, «nd of now they art different frost, or superior to, other goods of the teat nature* The stressing of qualiV sad merit in the goods i t always very good at Rett persons ere willing to pay for "good* goods* This i s essential in the Latin American market because In abs»st every Instance the articles Reported are used by the classes that tern afford to pay for them, and foreign business tan much more  easily be established en the basis of quality than on mere established on the basis of quality than on mere cheapness. She catalogue should also set out the exact weights and measurements of the different articles as these are extremely important factors when uoasidering freight charges and duty collectable. For the Latin American markat all such calculations should be given in the metric system, showing the legal, not, and gross weight*. The catalogue should explain as well how the goods are peaked and he* many to the ease* finally seen article should bate a separate code word to facilitate cabling for the goods. The catalogue should bate a complete index end it should be requested that with ill initial orders the purchasers tend explicit instructions ft* to shipping, marking, packing and declaring the goods. ft tar I have male no mention of price quotations appearing in the catalogue* Shis is because there appears to he no general agreement as to 1me best policy to adopt* Personally X am of the opinion that no prices should he inserted in the catalogue Itself but should be contained in special "price Hots" or "price forms." In regard to these "forms" X will have mere to Say in subsequent pages but in ease they are net retorted to and actual price quotations do appear In the catalogue, the prices Should be the highest, the ones pertaining to the individual consumer. The discounts allowable from these figures te importers will have to be Set out in the individual tales letters going to them. This matter of price quotation is one of extreme importance in the development of foreign trade and particularly so in referenoo  * Sfi » to Latin American trade.  This is a fact of which the average  Canadian manufacturer seems to be unaware, and so mush trade is lost to Canada through this ignorance.  In making quotations to  Latin Americans little should be left to the imagination.  It must  be remembered that buyers often are lotated at great distances, and they oust be able to determine very definitely from the manufactu n r ' s quotation Just what the proposition is* To that end strict attention to details Is essential, and everything should be done to supply these fully. Attractive prlfes are Just an essential in winning trad* to the south of us as they are in developing business in any other part •I the world.  la fast, In no other phaso of the expert field is  studious attention to details more important.  All future orders may  depend upon the pamper quotation of the good lin orstor to secure the first trial shipment.  Thus prise quotations are of extreme importance  in the capturing end development of all foreign fields. For idie manufacturer who is really interested in developing his export trade a form, known as a quotation form, will bo found to bo extremely valuable*  This will be a "rather detailed and comprehensive  form on which all quotations, with accompanying discounts, if any, •hall be submitted.  This quotation form should also accurately describe  tee goods and should clearly indicate the following - whore delivery of the goods will bo made; what packing will bo supplied with the goods at the price named; approximate time after receipt of order whin shipment can bo expected} what liabilities, only, the manufaoturer will assume; what, in a goniral way at loast, must be assumed by the importo»|  * 8Y •  what form of raarlnt inauranoe will be supplied in abmno« of speeial instructions from buyere; and finally, the definite terms •f payment oloarly explained.  In addition, eaeh item in a quotation  •hoot should bo given a oodo word* Quotations should bo made to hold toed for a •ertain length of time, or otherwieo, •until withdrawn.*  Withdrawal ahould only bo oaloulatod from date of  reeoipt by customers of no* quotations. Prisos 'subject to change without notioo' will not bo found a iatlofaotory meant of developing •ay Ian* oxport relation*.* * Along with Mill quotation forms of tho above emphatic reminders to ou«tomor« ahould bo enclosed stating that whanover opMlal passing or snipping route* are dooirod opooifio indtruotloni •not bo giren.  Ooeariptiouo, markings and classifisatisns of goods  for eonoular requirements should bo requested} otherwise tho monufaoturor oan only follow bis boot Judgment. MiSt Canadian manufacturers are unaware of tho proper manner of quoting prioos and thoy suffer heavy saloo lossoo beoumso of this igaorane*. Tho majority of thorn quote a prioo F.O.B sooo point in Canada. Suoh quotations ore useless in foreign trade and will rooelve extremely soant eonaidoration from any foreign importer. Thoss importers ore ignorant of tho distance of tho Canadian oity freal tidewater and the railway ratoo proTailing in Canada. They eannet then eompute tho laid down coat of tho article to thorn, so tho Canadian quotation is entirely useless. 1  B.O. Hough  Just so long as Canadian  •Practical Exporting" ohapter 10 • page 326.  - 58 •  manufacturers insist upon quoting In tola manner they may expeot their foreign aalea to remain at a fairly lev figure. The F.O.B. quotation, whenever used, should never be F.O.B. Canadian faetory but should be F.O.B* vessel in some named pert. The latter quotation la a diatinct improvement over the former as it allowa the foreign Importer to guage his costs aueh more oaf Hit, but atill this method la not the boat means of quoting for foreign ahipment.  Xt ia t however, the prevailing quotation from exportera  on this continent.  It would be mush better were we to follow too  lead sot by our European competitors and quote either in terma of G.I.F, Both G.I.F. and F.A.S. quotations are very attractive, and both have their reapeotive advantagea, but aa competition In Latin American beoomee keener there aeems to be a decided preference for G.I.F. prleea.  If there la thia leaning toward any price quotation,  Canadian raanufaoturers, in order to make the moat of their opportunities, muet capitaliie it and quote accordingly. The exporter who plana a serious bid for the Latin American trade must maintain or develop an organisation capable of quoting on either baais. The F.A.S. price (free alongside ahip) means that the seller assumes all charges and responsibilities for the goods until they are actually ready to be moved over the rail into the hold of the ahip* the buyer to assume all chargea and reaponaibilitiea thereafter. The F.A.S. price la eimpler for the exporter because  * 59 -  onus of computing ocean ratio and insurance charges falls on the importer. In all but abnormal times, however, the exporter can easily secure such data and arrive at C.I.F. prists with little difficulty and no additional risk. That ho should do so would stem tt bt the mors profitable for him. "For the novice the F.A.S. prist is often advisable because of its siaplloity, and in times of radical and sudden changes tht I.A.3. pries bttomts desirable from the point of view Of all lapretors, as 0*1 *?• prists are then necessarily Increased t# include an arbitrary protective margin la the nature of insurance against fluctuation." *  Apsrt f**» these facts, however, although  Hie additional work involved In quoting C.I.F. will unquestionably increase the etperter's overhead, it will hardly bo in proportion to the advantages gained thereby. The O.I.F. price (oost, insuranet and freight lnoludsd) Is the one nearly always preferred by the Latin American. This price will include all expenses of production of the article until it is npen shipboard, will include freight charges to the port of destinatisn, and also the usual form of insurance to be placed upon sueh goods* The teller thus pays all charges to the foreign country, while the buyer's responsibilities begin after the ship desks at its destination. It is this quotation that is supplied by nearly all of our European oompoUterjfeand it allows the foreign buyer to 1  H.P. Uaogowan. Editorial in trcommeree Reports1' Sept.l, 1924.  • 60 •  estimate Bert accurately bis laid down coate, and, there fort, what hit possibilities ot fro fit will he. When competition for bueineee ie keen, end ell other faetora are equal, Hie Latin American le very apt to oonalder only the pro duet sold en the "servioe" or Q.I.P* basic. The 0*I.F« priee ie "nothing mere than a refinement in distribution acrvice and a leiieel etep in the evolution ol foreign marketing" te nee the wards el Mr* H.P. Maogowan.  l  Foreign  cenpetlters ere living this service end it ie boteming increasingly iicosaiai r forfl*«*s*«*manufacturere te do the sane in order te WP^P^P/^^w^p/  gy^^^a  <pj^p^w M^PP*W^PPC  ^P^P* ^PP^W^PWAVJ  *•••  ewe ™w^w  *wvw^m " • • • ™  •*w •  • A V W W ^ T  waewa™a  \Aa*>^p*M  *e*^  • »w* ^p ^^ce^*^^**  VBAV  sacj^p^pi^e  ^^^**4*^*J**»W^^*"  •»^PJ^PWF"W  *v^v** •/ ™#^*> w  *»*WIP* 1 ^  «#^»*»**gg  the taee Qanadlan firms m e t give thie "sesvleV or loee ordere. ftetuvmlng te the natter ol eataloguee again, ae much eare ehould he taken In the translation ol then ae wae used with personal correspondence. A veil arranged and eaeily empreheneible eatalegne in {English l e aueh better than a poorly translated eonpUaUon i n a foreign tongue, though in general I t ie highly desirable te address a prospective easterner in hie native language. Side will be Spanish for a l l the republics exeept Breail, in vhleh eountry Portuguese i s necessary. 2b address a merchant el Brasil in Spanish i t te east a slight upon the Portuguese language vhleh he will he very <yd.sk t e resent* XI a eatalegne i s to he translated the vest should he dene by an expert whe ie thoroughly acquainted 1  1 bid.  - 61 -  with tha ldlanatlc languata of tha country of daftlnation to lnaura that Ita aoouraoy and olarity will ba unqueationaade. It w l H frequently ba found neaeaaary to send aa aeeoapanylng lattar with y a w eatalogue. Thla letter, aa wall aa any othar eorrespendenea, ahauld ba carefully phraaad aa in many ^w*^p  P^^PPB™^P^B'I^P'  w*^ : ^a  PP^^^•^•^p ^P  ^^e* ^pippap^e ^^^e^^a  ^p*vap.  •p^^p^w'^af e^^ff#* v^pe**^pai' ™  lafrfKftUfffrHaiti ta *<latlaaajpy tranalatleni«"  • w a •^ap^^e^'^^^ea ^ W ^ P  In many aaaaa  thaat tranalatlene ratult la. ludioFeue or meanlngleaa phraaea, aa ^^^^^^a^^  opaa  ^•^^p*^pw w w a ^ ^ a  ^p^aaaaa v  ^e*p  a^p^aiaw^  aa  ajaewe <• i# a  ^p^^w*a^aiP> ^aPA^aeBi^oow^^a  aa) ^Wpa^a*aa*aaap a/aeja) v *  ^p^r  ea^an ^p^p  va>  a u  w w a w a a a a  W ^ P * wea^a^a W ^ « ^ * P W  • • • •  " * * o * * * * *  atpy ditaa ta tat "tranalatar" painted tat that tha aara la queetlon W^^PPP^'PJ' e^^p • ^ ^ ^ F ^ ^p*  wip^paw^p^ PPJ ^^^P^ - ^P^MO aP5j^F^^^Praa^^  ^^a^a^e e^p^a. P/^^^^P^P^  ^pje^paapw^p^p^pe  w^p aje*^^P~a*,aa W * P * * ^ # * y  la&ptftd in bald typa, taXd proapeetlwe buyere that tha oar "la att warth aara than a aotarayala." There ara aartala athar expreaalene oaramaa to both Canadian and Amarlaan expartera that aannat ba traaelated into Spaniah. Thaaa exportera da aat ataa ta ba awara of tha faat and aa aany of thair lattari aonway nothing ta tha Spanish raadar. Saab, a aamaoa expreesion would ba "we aak you ta aaoapt it (aatalogaa) with our eoapllaanta."  Thla wall known a took Amarlaan phraaa haa ne litaral  eounterpert In Spaniah and auah expreaalena, if tranalatad at all, auat ba la aa antiraly oilfarant way* aomatiaaa uelnc many aara wordi.  4a aaaaala af thii ia taaUy Slwta and aay ba of amah  layer U»ae ta praapaatiwa exportera*  Xa Spaniah ana daaa nat  "aakaawladfa raaaipt af yaar lattar of tha trd inat." but rathar 1  H. X**a - lrtiole in "Oaaaarea Aeports" - Jane 23, l f M  - 62 -  "tftkt* pleaaure in announcing that we have In our hand* your  1 welcome oonnxunleatlon of the third of tho currant month." Tho Latin Amarioan i t aocuatomed to ho addrasaad as a valued Ottitomer even though hla aooount ba email, and ho likea to reoelve oourtoalea in oiroulara and lottera.  Ha is axtramaly  quiak and ready to reient anything that nay appoar to hia ai  liany of our Suropoan oempotitora have long boon moot eaTOpwlfue in tho language of tftolr Spanifh advertiaing, and tho "•"O^Pff W ^ ^ ( P P * P W ™  »••*.*•>  •  ^ ^ ff, ^ r ™ ^OJ^pijeff'OW  ^ ^  "0»O|OM^m  ***^P O W M  A W  '••a •  **V  Bw*a^O Ow0>  dagreo rwponoihio for tSiflr enowoog, Uletakoo that eould and gbwuld oo avoldtd rtaot unf*voraJbly upon oxportero making thorn  Judgot a l l exportor* by tho impreaaion oroatod by ono. Zt would SfO» highly advisable then, and oertainly woll worth tho inveatraent, in proparing all catalogue* and printod matter in Spanlih, to obtain tho oorvlooi of oualifiod peraona. Thoao peraono, fully convergent with the Idiom* and intrioaoioo of tho language, will avoid all tho dangora tho uae of moaningloaa and even ridiouleua oxpreaalon* Ocoaeion tho exporter. I eataloguo, to be of createat value, ahould bo kept up to date.  Zt hag boon auggegtod that this might bo aooompllehed  by forwarding oiroulara from time to time of tho oame alio and typo ao tho pagoa of tho catalogue. I  In thia way i t would bo pooaibla  H. Lano - "OOBjatrwo Hoporto" • Jane 21, 1924  m  - 63 * for a foreign buyer, upon rooelving a circular which supplanted •onto part of tho catalogue, to insert it immediately la its propor plao*. As a matter of iaot It might bo advisable in many instances for th* Canadian manufacturer to ha?o hit printed matter standardised in tho reipoeta indicated, oo that ail advertisine material «ould bo conveniently fllod with tho catalogue. One lout noto of warning I wish to sound in connection with thi distribution of those catalogues. Sever include catalogue* Sn any merohandis* shipment unless thoy ore expressly asked for bf th* laporttr. Always oond them under separate cower and at y u r «wn expense. Sfcia fox* two raaaone. In the ffrit plaoo a higher duty is frequently charged on eatalogues than on the merahandii*. Many eountrisa assess the total duty on the parcel at tho highest duty payable by any article in tine parcel. Thuo if a higher duty to payable on the oataloguo all the merchandise will haft to pay this higher charge. It ia only natural that any Importer would bo highly vened by auoh a gross error on pur part. In tho second place many importers deliver the goods inteet to the purchaser and if eatalogues, and accompanying discount sheets, are inoluded in the shipment, both the importer and tho consumer will bo displeased by such a procedure. When shipping eatalogues, send Idiom under separate cover and be euro to pay any duty collected on them yourself. Ho importer likes to have things sent to him unsolicited and on which ho will have to pay a duty, this fait explains why many Oanadian eatalogues tmtvr  get into tho  * $4 *  hands of the importers hut are hold by tho customs authorltiea and finally destroyed for non-payment of the duty.  lit general,  because of the relatively high freight costs and duty eharges, i t if not worth trhilt attempting to forward any large supply of catalogue* or advertising material unless at the suggestion and by ths instruction of one's sustomers.  •»  CHAPTER XV  DISTRIBUTION CHANNELS IN FORBXON  TRADB  In considering the possibilities of Canadian tradt expansion with Latin America w* must reckon with many- factors and th« same methods are not equal*? effective in all market*. 7h« Latin American republics offer many startling contrasts and the method of shipping to Argentina would ho disastrous if employed In Bolivia. Aeeording to Mr. w.c. Downs, writing In the "Quarterly Journal of Economies" of a few years back, the foreign exporter •an deal directly With tilt oonswmer with comparative safety only in Argentina, Chile, Brazil, Paraguay, Uruguay, Cuba, Mexico and Panama. With tho oilier twelve republioe it will he found to he muoh hotter to rely entirely upon tho indirect methods of tolling. Sho Canadian merchant or manufacturer who interests himself in Latin American trade does so beeause of possibilities of gain. One of tho fundamentals in considering such trade extensions is tho posslbile future of tho southern countries.  "Latin Amorloan  resources haWe scarcely been touched as yet and the development of thooo iamenso resources will make that field a most promising market for tho manufaoturing nations of the world, particularly for tho United States (Canada).  . if . For MI indefinite period the people of the southern republics will continue to Import manufactured pro duo to, ao theoe republics •re eesentieUy ojrltaXtttrel and, with the exception of Argentina, ^wor eel^mowMi  ^aaane  "Wwm^e^pi^o 0  owe ^ B  ai^^e^  eaa#^we* •  few sfleowoakv  • e a ^ w eww  O> io>^e * • \aow  oe> A A *i*o»" * *  WOtllilrt market fir Annrican (Canadian} enterprise. ^^^^^me^^^w^p W ^ ^ ^ ^ew  O W "  WP^^POJ ^pwe^^p^mm ^PS'^'  build* for the future.  ^w ^*^e> v ™ o e  ^••wwa o w v ^  ewea  The wise  ee oa^s^aew^posB^o  ^eec a^^o  Wam w  Bo decs not eolely oonoider in hio  Calculations f i t question of profit lor one or two yeara, but has in mind tho Mtabllshment of a buslnees which oholl maintain a tort*?* g*swth 1B proportion to tho increasing baying power of UMI: l a t a * l l f l o W H j " * • saswsjf^sj  ease W  Moaeaew#^s7%a>aw  Waa^y OF  " I  W U W I v  wAUS  ••> B U V  V e i n  vsaaar  aorohantf of Utin America and thoir roopoetivo desirability if dependent upon nnaw footers. TIM different method! should bo carefully atudled but whom a policy hao boon dooided upon i t ohould bo strictly adhered to and tho manufacturer should not allow himsslf to bo swayed from a eouras whloh eareful aaalysla and study hao shewn to bo tho proper owe to pursue. An lndiaponsablo faotor i s a sympathetic attitude toward latin American!, and an understanding of thoir customs, methods, ideals, etc. Without such an attitude, oowpled with systomatio effort, suooosc will bo difficult of attainment* There i s no one colling method which will cower all sircumstanoea, tho aondltiona la tho recpectiwe republioo ao well as 1  c%», Fileiager - ••aportlng to U t i n Aaeriea" chap. 1 p.T ^  * it • the problem* facing the manufacturer, largely determining what method will be employed*  Every business sen who contemplates  the development of 1hat market must discover the best means for himself through oareful study and analysis* Mush In this line oan hi Itemed from our Buropean competitors. Adoption of the means which hate made Buropean firms so successful there will often prove very beneficial. The keynote of Buropean success in the Imtin American field, especially that of the Germans, has been study and analysii of expert conditions by individual manufacturers. Germany's Wr^igWe^WWW fleml wWePm Mf  esesrvAMK e e *  wBswBmWBtw^W  em»Bwf  PwWI  iMm^P  e|V  Js^mu»m»essi •s*sm»i»e»^  effort in otedy, in investigation, and in planning. The Qermen ling •inee learned the importance of throoughly qualifying himself t§ supply the product required, even under adverse conditions. •»^F  ^^T^B^*^^P*^H™^H**. «^^*ww w * i  w *w *M^a *m  ^ a * w w ^c *^ ^P ^P  relation to the if fort made.  OI ••••sp*  •*>^aap  • ^^ ^»^*»^^ w  #™^w < • * • ^^ ^P W  l  Amongst the many iales methods that ere possible i s developing foreign territories the following may be mentioned as the most productive! I  filreet  through correspondence and mail order houses.  S  Direct sales to wholesalers and retailers.  8  Seles from efforts of traveling salesmen.  4  Salii from branch offices in the country.  I  Ibid • chapter 4 , page 44  - 68 -  S  Sales through the activities of agents,  ft  Orders from expert commission houses.  7  Orders from expert merchants  fi  3ales through cooperative effort,  t  Sales arising frest the maintenance ef eonneetions both la Tiendta •*>* Heir York*  f t will consider first the development ef th* market tlirnush eetrCMaaaaaaae «»"» the us* ef e mail order department. Xt l i taly **** the mere advanced countries of latin Ameriea that sash a method ten he earried en vita mar decree ef success, eat eft^aWfw  aaaWJ^ eaaajp e w a a  * *Pa*s#**  VV  a^eT J^VaJeafcafeVw w»  ^*a ears vAO oV U X V t  •(**•"  exists no field fa whiob the small manufacturer or merehant has so great an epportttaity far developing hie easiness* Ihls i s due to the feat that the t a l l e r dealer, if in a position to offer quality aad prist equal to the larger fii»» t i l l be on an equality with the larger exporter tat etnttmplatea a parcel pott business. Of court* this dirtet to consumer method presupposes test the produoiag concern has aaple capital.  The investment  required to adequately develop the retail market in sash a way i s considerable and i t will never be economical to use this method except an those markets where a very substantial business may bs dtvtUptd* la the markets of lesser importance i t will always prove  - 69 * more economical to have your articles sold in retail establishment! carrying ether good* as well, since in this way the overhead horn* by each article i s reduced. The mail order business has spring up very rapidly in Canada and the United States because of the favorable postage ratis en paresis to the southern republics, amounting to only 12^ a pound up to * flUrrtjw of eleven pounds. Such parcels require f*w customs formalities or papers and occasion no protracted freight clearances. Paresis tent by the post are not burdened with overhead freight or Handling charges. Th* post af fords tho cheapest and quiskSst means 0 shipping small articles, no charge being mad* for clearance and only the duty being collected.  The mall order  business i t particularly productive el results la Latin America because of the extreme eonaerrativlsra and loyalty of the purchasers. On** they have bought from one concern they are extremely loath to change and i t booome* very difficult for a eoapetitor to entice thorn away. Thus with them the mail order business may reach groat proportions to long as the Canadian exporter takes care In shipping promptly and packing the articles as ordered. In order to establish a mall order business with Latin America the Canadian concern will have to prepare catalogues that will Wiethe confidence of the recipient.  Bos this may bo accomplished  was outlined in the last chapter* After the preparation of toes* catalogues tho next move Is to secure an adequate mailing l i s t . I  P* Haas "Foreign Trad* Organisation" - chapter 18  Such  ':*: f 0 ••  l i s t s may bo secured la several ways; - from -the Canadian government, from responsible listing agencies, and from the head postmaster of several of the republics who will often be willing to submit possible names of Interested buyers. Frequently these pest offlee and pareel pest officials will cooperate with the Canadian firm wishing to establish a mail-order business by the distribution of i t s catalogues. HataraUy in the develoi»ent of such a business the filling of mtot* S*a*tly $m accordance with, the illustrations and dsssriptiss** appearing in the catalogue is absolutely essential, Kfvsr insert a substitute lor any article toisporarily eut ef stock unless f m first sable for pernission to do so*, Su«a substitutions art fertlli breeding grounds ef suspicion and bad feeling, an inposslblo atoesphere In which to carry on successful business. The careful wrapping and addressing of these parcels i s also essential*  She importance of accurately measuring and weighing  the parcel must also be stressed as parcels must always conform in dimension, weight and value, to the laws of the country to which they £11*0 s\QuX°60 AQGLe  The second method to consider is possible direct sales to wholesalers and retailers. Selling direst to retailors is simpler than selling through a mail, order house as it requires less capital investment and a Slighter knowledge of local conditions abroad. But thS exporting firm is Still under tho necessity of making a comparatively large investment. Zt will usually be necessary for  ,  -nthe Canadian firm to undertake the advertising 4f the product since no retailer can benefit sufficiently from a general advertising campaign to Justify his undertaking it. It will also, ai a rule, be necessary to open a permanent offloe in each country* This office sill oonduet the advertising campaign and in part > control the salts forts*  It maintain this offist will necessitate rerj  fairly High administrative costs, and the work done will be  Similar to, though not quite as comprehensive as, that done *>y a  fhtrt tht Canadian exporter sell* direet to wholesalers slightly different problems art etnfrtnttdU gsods bessmss greatly simplified.  Tht marketing of his  He will place tht development  of ths local market wholly or priatipally in tht hands of the \ •  •  \  U i;  \  ,  ' -  J  V '  •  »  wholesale firms who undertake to market ths goods through ths&r;  .  '. '.v- y K ; regular trada channels. Naturally, with this method, even sWghter! \ •. knowledge of foreign oonditions i s required by tht Canadian firm that sells tiie goods, while the wholesalers whs market them w*ll 1  • (  { { |\  ••,.  ; . ; ; ,  obviously know something of loeal conditions* The local selling  ...,  k  tt,-._.4.;k  may be suppltmsnted by ths iff oris of the traveling salesmen of the Canadian firm, the atVsrtising expenses being apportioned  1  between the two, tiros curtailing seme of the expenses of tht; \ \ Canadian firm. As these local firms often set as the "agents* of tht Canadian house, I shall treat of them under this title a little later in the chapter.  ;  "4  \  \  h  \  :\  - 72 Tho principal advantages of this method of selling goods may be enumerated as, the relatively small investment required on the part of the producer; -the redaction of credit risk by dealing only with a small number of veil known firms of considerable tapital strength} and the benefits derived from the utilisation of the already established channels of distribution ef the wholesale firm. The most effective means of obtaining business in Latin Aaertis is through traveling salesmen in the opinion of mr* fc*B. filsinger.  Shis preeedure is likewise reeonmended by  all consuls, chambers ef commerce, beard* of trade, firms, etc. Hr« •**. Wyman himself State* that "He (the traveling salesman) may he correctly termed the most powerful single force in export selling."  *  Beth men relegate the part played by correspondence  to second petition, but admit that tho Salesman is at his best when he forms the "keystone of a well-balanced Sales campaign, supported by tht test of expert correspondence, the best of export advertising, and the best of samples and testimonials."  The fact  that Latin American business men are extremely conservative makes it even mere essential that an effort to establish permanent business there should be based upon direct representation. A traveling" salesman should have a thorough knowledge of the products he means to sell, a willingness to conform to the customs I t  B.B. Filsinger W.P. Wyman  "Exporting to Latin America * chapter 6 "Expert Merchandising" • 10 * p.98  . n• of the people In tii* countries ha will v i s i t , and ha should hart, if possible, a knowledge of thair language. In th* words of Mr. V«0» Shaw "Th* thine which moat salesmen do not realist is that the amount of goods a man soils depends to a very groat •Stout upon his ftflioresfr in them, his slWTlfifft about them, and *&* limftffii'tlffili  eonoomini his goods and his ouatamer."  The first oetontial of a foreign salesman then would appear to be a broad and alter knowledge of the field and the fasts in the realm of hif prescribed activity.  "Suoeess in the foreign field  coats to the «—» who known* Knowledge i s newer*" The expert salesman should eo preoeded by a most oareful preparation of the field ho is to oarer. Those markets should fimt bo «aneassed by terretpondenec. advertising, or agenoiea before a salesman is sent out. The last i s too expensive, at an Initial effort*  But although i t i s very diffieult to got experienced  and eompetent men, and the traveling expenses are very high, there i s no other moans that oan establish so quiokly the business of a manufaoturer. It will bo neeessery for the salesman to have more than •ore knowledge of the goads to be sure of suooeaa. Coupled with thie knowledge must bo en ability to toll goods. Tou must empty your customers' shelves at well as f i l l than- In seleetlng an expert salesman i t i s always wise to use the tome tare that yon would ute in shooting a business partner. The prospective salesman should 1 1  Ibid - page IS 0*3. Cooper "foreign Tradoj Markets and Methods" chapter I, page If.  *«  be required to pais a field test at home before setting out for if he cannot sell goods at home he cannot sell them abroad. Another necessary qualification for & salesman's success is that absolute reliance be placed in him by his employer. His word should always be respected as for as possible and he should receive frequent Utters of encouragement from the home offlit.  A traveler la a foreign field and amongst unfamiliar  persons and surroundings is far more easily discouraged than he would be at heme. His morale sad eourage can best kept up by these frleudly greetings from home* Re does act thou feel that the fine he is working for is a "soulless corporation." Maimers, eturtesy and culture will always be found to be invaluable advantages. There is hardly a quality of the foreign salesman nor* valuable than the reputation of telling the strict truth regarding his goads and his house, for he thereby gains la the long run a eonfidenee that is one of the most valuable assets in for sign oommeree* I have already spoken of the fact that a Salesman's visit should be preceded by a notification to the business men in the field*  It is a sheer waste of money and of effort to send a salesman  to an unprepared field. The merchants should have been made acquainted with the products ha has to offer*  They should know the reliability  of the maker of the products. They should know the reliability of the maker of the products. They should be convinced ef the fairness *»  *n• Of tho policies of the exporting manufacturer. Products should be advertised in trade journals, press etc., before the salesman arrives in the market* This procedure will serve to bring the products to the notice of the business men and vill make it much easier for tho salesman to secure an audience. Immediately preceding his arrival should come mall correspondence serving to introduce him. Those letters should bo sent to a selected list of own personal eara1 to these final announcing t h a t ho w i l l c a l l a t a certain hour t  on the following day. '  Swan a proooduro is usually recognised to  It tho oorrtet one to follow in all dealings with Latin Amerioan ewuJKOdkslih^ amOm A  Tho talesman's first visit to a territory may not bo a financially paying one, but tho securing of oven small orders is very desirable. If only small orders are received tho Canadian first should not fool discouraged because such orders are usually tost orders alone, to be followed by larger ones if tho product proves a success in the market. Repeated foreign trips are essential both for gwewth of trade and in order to keep abreast of competition. If it is worth while sending a salesman to a market at all, it in even bettor to follow up this first visit by later ones, though it may bo iraposaible to send a man every year. Trail once established, no matter how, will not «ntinao forever to take care of Itself. It must bo nursed and cultivated if it is to be developed adequately. 1  I.P. Wyman "Exporting Uerohandisingw  chapter IX  • 75 *  One final word nee4B to be said in connection with the v i s i t s of traveling salesmen to Latin America.  Shis concerns  regulations and taxes exacted by the different republics from these travelers*  Nearly every country has certain regulations,  and there »equirementa have in the past proven a source of great worry and Inconvenience te hoth the Canadian and American traveler, Ignorant of their existence and of the "red tape" required to get around them*  I t i s eottremely important that the Canadian exporter  should familiarise himself with, the respective requirements ei each republic  Only fey doing so can he accurately figure out the expense  ef conducting ft selling campaign In any given territory of of I*e#iding his representative with the necessary documents and f a e U i t i e * for carrying out that eampalgn auoeessfully. Each republic usually levies a lieenoe fee and a tax (federal or aunieipal or both) On every traveler.  Many countries  require ef them, l a addition te these taxes, documents of identity and power of attorney from their principal.  Those documents will  outline their powers and the grounds upon which they may conduct buiineSfl.  They w i l l also Show that the salesmen do actually  represent some reliable Canadian firm.  Letters of introduction  from banks and hoards of trade will he found to be invaluable in ©nsuring a salesman a cordial reception i n Latin America.  Samples  without any commercial value are usually admitted free, but a bond or deposit i s nearly always required against samples of any value whatsoever.  This deposit may usually he regained upon reexportation.  • 76 •  of these samples*  Generally speaking, B O tax is levied against  printed matter carried by the salesman. Suoh a tax is on the statute books bat is seldom enforced. Any Information that the Canadian firm may require en the subject of these regulations may be M e w e d from the Canadian Government at Ottawa, from Canadian Trade Ceumilsa loners la the field, or upon application to British Consuls stationed there* The last method of directly developing trade with the I*tin American republics is through the establishment if branch hoass* If the Ccnodtsa fins*  Such establishments are very good  when Ime time cents for thorn or when the exporting firm can maintain the expenses of their upkeep.  Otherwise the other methods of  reprosentatics In the market will be found to be productive ef hotter results* Very too Canadian firms exporting to Latin America ii  would appear to ho la a position to support ittoh an undertaking as this but with increased trade between the teo continents the time may seoa come whoa mere and more Canadian firms will be looking to this method of direct representation la the field* KaturelJy the establishment of a foreign branch house means a heavy addition to overhead costs* This may necessitate a slight increase la the prices of goods with consequent »irtaUaent of sales* The question to he decided is whether the additional profits will counterbalance the added costs* Another item to bo taken into consideration is the local antagonism which the branch house is bound to develop*  The Canadian manufacturer  • Vf -  will become en active competitor la the field of the local wheleaal* importer* and distributors* Son* trad* will bo lo*t in this way *ad i t lo only whoro thi* antagonism oan bo overcome or counter-balanced by saino that a branoh offioo should bo established. On ths other hand, the establishment of branoh houses oorrioo eereral distinct advantages.  It become* much eaoler and  ewitfafr to supply repair* and iporo parte. Theee can bo stocked and wtU ttOt hat* to bo *hipp*d from Canada at fee oo***ioa ari***. ^^^s ^^^awau™  u^weauw  oaajp^aw^paFSa* a^asae?  ^s^p^Pjp*ea>  we^p*?  **^ar  a* o a r * *>  asav*ap^  ^P-*»  **>  a^p  * • » •* SPO* « *  sjp^poampe assa  ^p*e»*toiawp»»  ^ a ^ a p e w s spasa •  ^ P ^ P B W a»ap^p  a*v  Aapaaw agency s  ^iFaa» ip%^^w^pa a>  spa eae^eptae  ea^» *a^^^w^p  «  **t*bli*B*d abroad May bo considered a* having a oortain publicity fats* fo*» Hit daaadiaa firm. Hot only will *ooh an offieo aft at a tort of adt*rti*«B»nt bat it amy bo of great aid to aaleaoen la fwraiohinc die play window* or oamenstration room** X ahall now speak of the various Indirect method* for procuring tales la foreign countries. Xhate method* are employed whoa the entering of a foreign market it a now venture) where sales in any Market are only spasmodict when Hie volume of buainoss of aooasolty must bo small j or whoa the capital aooesaary for oatablisalng direct *ale* method* U lacking.  X eat oonaidering sales through  ageat* as an indirect selling method although X an fully aware of the feat that many anthers would consider those sales as direct.  »#  * t$ '* Whore the producer does not find it desirable to tie up a large amount of capital la the development of any particular market, and therefore does sot wish to maintain his own offices abroad nor to incur the expenses of sending periodically salesmen into the field, he may appoint tome individual or firm as his agent la that market*  This agent will assume the responsibilities of  telling the article la the field by soliciting ardors and aiding the manufacturer to aorta his customers satisfactorily, la praotittlly all oases the agent will receive his romunoration in the fern of commissi a. The edVantaooa of having a reliable representative in a foreign market aro obvious. An agont permanently on the ground 4aa lock after the interests of the firm much more effectively than a salesman visiting at infrequent intervals* He can keep •I  his principal posted regarding the requirements of the market duo to changed local conditions. Re will be able to make suggestions to meet those now conditions and can thus generally safeguard maittifaoturers* interests.  Ho will also he able to supply Invaluable  assistance by informing the Canadian exporter of the activities of all competing firms la the market*  One of the main arguments for  the existence of such agents is that they are presumed to have an intimate knowledge of the credit and mercantile conditions prevailing la the market*  Such information will serve to cat down to a  minimum the bad debts likely to bo contracted by the exporter, agents will usually supervise local advertising for tho Canadian firm and  "N£! #70,**  keep the manufacturer's wares before the ayes of the buying public*  In this way they serve as a complement to the services  Of the export commission house in the overseas market. Writing la the United States "Commerce Reports" in |*egari to agents in South America, Mr. F.A. Christaph has this to say, "The fact that a firm hat agents in any market but continues to receive a major proportion of orders through export commission houses should not discourage then,  agents sometimes find It  srfcromoly difficult to overcome customs and send direct orders. the nest important function if a tales agent is to 90th the salt of his principal's products*  He creates 0 demand for these by  •oiling OH tho merthanta *nd importers.  He does the actual Selling  and it tht aotivt means of getting the business.  The use of the  agent does not conflict with, but, in most instances, increases tho business of tht export commission house. Shis is accounted for by tho fact  that after the agent hat "sold" 0 merchant, tho Utter  will place ais order through a New York commission house, because of the shipping end financial facilities which they offer. Merchants Sa South America in particular, prof or to transact their business through such houses and this makes it almost impossible for the i agent to get direct orders himself." fho manufacturer who contemplates the appointment of local agents should make clear in all advertisements or letters relative to the subject tht following, his facilities for export, •«  1  f«S*  "Commerce Reports"  *  January 7, 1924.  • 80 *  his ability, and all advantages of his product. la return he should exact references and make clear to the applicant his position regarding commissions, terms, territory, prices and discounts. He should sake enn* of the agent's purpose la wanting the agency and also ace that the agent is act drying to ifcprccent too big a territory or toe many lines. Ho should nake sure cf the standing ot the applicant, both socially and ooowsrclally*  She duties, liabilities, authority and obligations  of agonts should be expressly stated.  I  Uanafaoturcro chould  always maintain close cooperation with their agents because the greatest results la the development of foreign trade with Latin America, no natter what method Is adopted, Will be attained by cooperation.  Cooperation will stimulate the efforts cf the agent  and is extremely desirable inasmuch as competition is becoming -J"  keener there and i t i s essential to obtain a maximum of results Wl1fe a nfceto— of time and energy. The beet way to secure reliable agents abroad is through other exporters who have already tried agencies In foreign fields and found them able to withstand a l l tests. Agencies recommended by inch firms will usually ho the most reliable and most progressive ta the field.  another method, frequently spoken of as the "Holyoke*  system la to "sock out a long*establisned, closely allied, though non-competitive firm - one that has bwn In exporting long enough te have made Its agency mistakes and to have rectified them 1  R.B. Fllsinger "Exporting to Latin America" chapter 6  *  *> $ 1 m  and to "adept* their entire agenoy group from Iceland to Ceylon." I h i s system has the two merits of extreme simplicity and safety. The G&nadlan manufacturer in establishing his agencies abroad w i l l frequently be s e t by the demand that he grant to the firm the "exclusive" agenoy contract for the field*  Far too many  such contracts have been granted l a the past and menufaetuvers should be extremely careful in c o m i t ting themselves to such an agreement* Whenever such an agreement i s arrived at the ^^BWiwe^W.^p^nop ^v^W^ ^B^  iw^^^S ^ e # w  i^B^BMPy^w  eeawB* ^&  *aew w  that eush an arrangement merits*  aa*w^^  ^a^a^aja^^  ^J^* wap  v** *e  ^a* ™ ^*^p** *• •*-— ^WA  The territory given over to these  exclusive ageneies should ho definitely presoribod and limited so that too much power does not fall into their hands,  "Wisely  so leeted, with an eye to future decades, and in oixaumstanoos which dictate the appointacnt, the day-in and day-our presenoo In a market of a personal representative needs no defender.  Selected  in haste, without thorough consideration of the representative, the prodttet and the market, the exclusive agency Is the most decided sales depressant.  Haphazard methods do net pay.  Manufacturers•  specialties and limited markets lend themselves to agencies.  General  staples and lines carried by a l l wholesalers aad retailers, depending on small sales per person and requiring only small investment, do net lend themselves to exclusive agency contracts.  Thus usually the  nature of the product or of the market w i l l indicate d e a r l y the  1  W.F. Wysmn "Export Merchandising" chapter 29 page 384  • 82 * t  i  wisdom of the form of the agency agreement." * It IB claimed by business men almost unanimously that the most important single factor in the development of trade with Latin America, next the salesman, has been the export commission house*  If such houses have been of such  great Importance to manufacturers of the United States, England and Germany, then they should be of equal importance to Canadian firm*.. Unfortunately we have very few of these houses as yet ill Canada so it will be necessary for us, for the time being* to '••'••  -;V\  depend upon the facilities supplied by American houses in order/ te secure some portion of such -brads with Latin America. Mr. '; B.B, Filsinger claims that the two chief reasons why the eiport :•:'• n  \ \ \  \  house hat been such an Important factor In the trade development ' <. !  ;'  •  •, v- :'"i  v  •..;•'•  V  .\ "M  •  Of the Halted States with Latia America are, "Firstly* beoaius* #T i t s highly trained organisation, many American manufacturers;,  ; '  through I t , have been enabled to place their products in Latiji "'i ; ! " '.  •  •  ;  .  - \  • .•',  • :•>  *;<  .A  American countries at the minimiss egpense, trouble and risk,* $i '. \\ \, ' \ ....  ..  V'S.'-V) ,  '.*.v '\-  this has been so whether the export house sold on commission or \\\ x for it« own aceetbrt. V\ "H \  K1  \  "Secondly* the merchants of Latin America have found it of particular assistance to trade with the export commission  \V . %  because of the credit facilities thus afforded them. In the \ rapidly developing Latin American republics there is a general shortage of capital and by making consignments of raw products  ; 1\ to the expert house a basis for larger credit is established." 1 %  &  I  • J.  Ibid Chapter &t' * page 929 . Vj\ 1.3* Fiasinger "Bxporting to Latin America" chap. 8, p.Cf \  ''  • 83 «•  The export commission house in the United Statei serves as ihe agent there for merchants in foreign countries. They are then primarily representatives of foreign importers on whoso behalf they act in the exporting country.  In that capacity  they aot as consignees for the foreign exporter who ships to thorn mm produots to he disposed of in the United States on their account. The mala function of those houses today, however, io the purchase of good* in accordance wl1» instructions forwarded to them from tilt foreign borers. For this service the importers pay thorn a ©emission.  These export commission houses ere familiar with the  btft sources iron which they may obtain the goods. The instructions itnt thorn stay ho either to buy from some specific firm or from tht firm supplying tht best quotation.  Since the latter it true of a  large proportion of orders it will repay any Canadian firm to keep in close touch with seme of the larger of these export commission  houses. Besides purchasing the goods these houses attend to all the details connected with their shipment*  They instruct the  manufacturer in the proper method of packing and marking the goods* They will then finance the shipment, paying the manufacturer and later collecting from the foreign merchant*  These houses will  engage cargo spate for the goods, prepay all freight charges, insure the merchandise, and even go so far as to attend to the clearanoe through the customs house*  The forties* of these houses  ere especially valuable when the foreign concern wishes to make e  ««  • 84 -  number of small purchases from a largo number of firms. The saving la freight charges and other small items effected through the utilisation of these houses amounts to no inconsiderable sum* When a Canadian manufacturer is represented by an export commission house he is relieved of all potty details of shipping and proper routing. This service is no small Item in itself and is the reason why many small concerns ship almost entirely through these houses. It then becomes unaoeossary lor the Canadian firm to make an investigation if the Latin American scalers or to study packing and customs house requirements, such detail* being furnished by the export house with the order. The manufacturer will receive cash practically upon fulfillment  of the order and the entire transaction will require less oare and thought than the handling of a domestic order*  By reason of the volume  Of business done by the house the manufacturer may fool assured that his goods reach bis customer mors economically than if he shipped them direct himself on individual bills of lading. Although the above is the original and acknowledged field of the export commission houses, to-day they are branching out into other spheres of activity. As well as acting as purchasing agent for foreign importers they are now attempting to act as foreign sales agents for manufacturers Of their own country. Most of the leading export commission houses maintain Branch off loss or employ local agents In foreign markets. Also they send out their own traveling salesmen in order to hoop in more intimate touch with markets and customers* to watch conditions, credits, etc., and to extend their circle of customers  - 86 -  wherever possible.  These men and agents solicit erdnra from Importers  la latin America and thaa act aa purchasing agents for theae firma. It seemed a very simple procedure te expand their work into aeting aa travellug ealeamea far Aieat liaii manufacturers and. te latroduoc new lines late the latin American field.  Bat their position aa purchasing  agent far the ferelgn merchant at tame meat favorable te him ie incompatible with thU aaaaad fansticm. Many henaea hate reeogaised thia feat by operating ia feraiga fields under different firm er iwajBaay ajytea * caeca Hag orders aa eeaaieaion aa aae eonaara and prcieaHm apcetsl amaflaa aad arciag particular coeds under another dirleioa ef the concern. Departmental specialisation has put in i t s appearanoe la many expert haaaea te-dey aad theae tea apparently eaatfttdttag fane I taiH art beaaaiag aa comma as te be the rule with arltiaa M wall aa American expert eauadealen houses. However, the eapirt aeaalaaiea house aa the oxelueive agent far a maaufaeturer la a given territory la act likely te develop trade te ita greateat possibilities. Aa a rale i t can sell the auauf caterer's geeda ealy te ita own euatemers. It cannot wry wall cell te these eenearna fciat prefer te entruat their orders te other expert eeaaleaiea heusea. far thaa reaaon i t ia well far OanaiHaa firaa te become acquainted with more than one cemaisalon house. They will flad that thalr total sales resulting frcm cuch a procedure will aa much greater thaa theae reeultlag frcm the efforts ef eaa house alone. Aaather method of eavalepiag foreign trade ia through the caplejcjeut ad the sarvieea ef an export merchant. Theae man perform msefal funetleas far maaaisatarers whe wiah te cell abroad witheat  * 86 *  assuming the risk of such sales, especially in effecting sales in backward countries in which financial facilities are not well developed*  % e export merchant and the export commission house  perform very similar functions and their services are often confused in the mind of the public*  The export merchant differs from  the expert commission hcuse only in that he buys goods on his e m account end does not act upon a commission basis. He sells these goods abroad and hit profit comes through the differences he can secure in the price ef $te articles*  Be assumes the risk of price  fluctuations and exchange fluctuations and so he must have keen and efrewd lodgment as veil as extensive credit facilities. The expert merchant will usually handle any and all lines that are likely to be profitable, but usually pushes the sale of that article which brings him the most profit. Inns scat merchants* "lines" ere sure act to gut the fullest attention passible*  Since the merchant must receive  a profit the price of the manufacturer's goods will be raised in the foreign country "tons curtailing sales to some extent*  Taking all  factors lute consideration it would seem to be much mere profitable for the Canadian firm to deal with an expert commission house, or by seme ether method, rather than try to develop its trade through the services of the expert merchant* I*rge Canadian manufacturers engaged in the expert trade can maintain their own crganixatlea abroad independently. There are» however, a great number of medium sised and small concerns interested la expert trade* cut ere restrained from participating therein by the expense and rickc involved*  This difficulty is being overcome in an  -8?«  increasing number of oases through the voluntary agreement among a amber of firms In allied lines te cooperate in their sales abroad, either in the maintenance of a combination offioe abroad,a Joint representative for foreign sales, or a combination salesman to represent e l l and solicit sales for each manufacturer.  In resent months  several combination* of this nature hate taken plass amongst hardware manufacturers sad machine-tool manuiasturers in Canada. this scheme has mush to commend •specially te the smaller exporter. Where the group maintains er sands i t s ova representative abroad the overhead expanses telthe individual members ef tits group at!} Sbvisusly be rsdnsed, and, at lbs same time, they will be abls to pay a higher salary sad tans secure a mors efficient end oapabls representative,  there are, of course, attendant disadvantages with  ibis scheme as with ttery scheme, bat experience thus far has lndloated that this method pet tosses many possibilities to eonarand i t to the serious ssnsideration si all medium sited and small Canadian manufacturing conseras interested in the development of sa export trade. One last means of developing foreign trad* remains to be considered, this m*thod i s vary similar to the advantages to be gained through the asa of the expert e*n*lssi*n houses.  X have reference her*  to th* importance of l*t Turk and London as world trad* centres. Both have many large export houses through which Canadian firms might well d*w*l»p their trad*. Interviews conducted by th* Canadian Government in m i , 1921 v i t t sea* tv* hundred London firms of this class showed that Canadian exporters war* aot suffisiently aware tf the opportunities for devalepUg busiasss with *ther market* through th* medium of these-  Louden houses*  Foreign customers of these houses send in their  orders and these firms frequently are called upon to buy in all quarters of the globe la order to fill then*  It would seem very  desirable then that Canadian raanufaoturers and exporters should make greater elf oris to eempete in this trade. the majority of the firms interviewed by the Canadian Government shoved a real desire to deal to a greater extent in Canadian products. Many lacked information as to tho lines which Canada vas In a position to export at competitive prioes and it vat often pointed out fhat Canadian exporters did not show the same enterprise in canvassing export business through London as did rival American firms. The principle governing all purchases for overseas customers by those London houses, which number upwards of three thousand, is to "buy in tho cheapest market.''  All these firms make a point of keeping  la touch with ruling quotations in all possible sources of supply and thus to place orders to the best advantage*  Canadian firms ean bring  their source of supply bolero Indent houses by keeping those firms regularly supplied with the latest quotations* Time is Important in filling those orders, or "indents" as they are more commonly termed In Europe. The order will go to the manufacturer giving tho boot quotation, coupled with tho immediate acceptance and filling of tho indent. To secure the order it is imperative for Canadian firms to have representatives In London with samples and with authority to glvt immediate quotations. Unless Canadian firms do so, it is difficult to soo how Canadian manufacturers ean over secure their !•  • 81  irspor share of tht export trade that ie annually handled through Undo*. •hen the Canadian exporter la property represented in Leaden and the name and address of tee representative Is filed with the indent hens* as a possible stores of supply for oertain lines, teat hemss will net fsl 1 to request quotations from tee Canadian representative whenever the ossasion arises* A t importance of having regular representation In London cannot ho over emphasised. There are many London •spirt firms she are open to aet as agents for Canadian exporters for Si small eemmisslsu, and wite due eare and diligenoe Canadian manuf astursrs sad exporters should he able to find suitable agents to represent their interests sad saavass tee indent and export houses on their 1 behalf. that Vat true of London firms i s equally true of the similar houses Situated la New Tors* The latter market i s even more important for Canadian firms beoattse of slots proximity aad because Rev York Is the dominant eentre lor trade wite State and Central Amerioa. In the year It** lev Turk had Sid houses doing business in South Amerioa} i l l wite Central Amerioa, aad 1ft with the tost ladies. The following Canadian goods weald seem to be eapable of a more intensive development in the varisus aarksts through the employmeat of tat or more of these large Hew York houses. RssT IhssTltll  •  Attestes, seal, enbalt, laaber tin, ores.  Faadatiiifa  •  Apples, beans, batter, obsess aad dairy products *•  1  Arliele by L.O. Vilgress appearing in tat "Canadian IaitUifsaee Journal" of February Mil, 11*1.  *.fd *  fish, flour, grain and grain product!, packing house products, peas, potatoes, eto. Manufactured Products  Agricultural implements, autos and accessories, burlap, chemicals, cutlery, coke, drugs, fertilisers, galvanized pips, hardware, iron and steel products, leather goods, machinery, pulp, paper, printing ink, shoes, tinware, tools, paints and Tarnishes, wood manufactures, etc.  Many Of the Hew fork firms are extremely interested in Canadian goods and are desireus of mere up-to-date information as ts Canada's export possibilities. The greatest difficulty seems to be to secure quotations from Canadian firms at shirt notice. Whore time cannot be spared to seour* Canadian quotations orders will necessarily go to u*i*Sd States manufacturers. Son Yerk houses are continually receiving orders ©! this nature and Canadian manufaoturors are often neglected because information cannot be mado immediately available. As Soon as this oversight is remedied there should bo newer and wider opportunities •  i  i  -  for Canadian goods in foreign markets. The complaint has often been voiced that Canadian firms are slow in answering correspondence, in giving quotations and aervies*  So lout as this charge remains true, Canadian  firraa cannot expect to toko any large place in the foreign trade of the world*  Service and the prompt and courteous answering of all correspon-  dence are absolutely essential to success in any field, domestic or foreign* As l,n London, it has been found to bo extremely advisable and benofieial to have a personal representative in How York at all times. EBO joint maintenance el snob a representative there by a group of •*  * 01 -  Canadian manufacturers has boon proven to be very satisfactory. H#, or bit staff, could supply full Information about products available for export, and the latest quotations en goods represented would always 1 M available*  In this way the loss of many valuable  trade opportunities would be obviated.  •II •  i l l  !•  •1  - 92 -  CHAPTSR  V  PACKING FOR EXPORT TRADE  !  Actual experience in handling expert business begins with the receipt of an order for foreign shipment.  In the past muoh  negligence and many wilful substitutions have marked the filling of foreign orders by Canadian manufacturers. This complaint is heard on all sides and as the first order is usually only a "feeler" for many more and larger orders that ought to follow* great Importance should be attached to the filling of small orders originating in •I  Latin America*  The methods of the manufacturer, his ability and  desire for ejpert trade* will be measured by the care and promptitude with which he dispatches his first order. The Latin American is an extremely suspicious person and is intolerant of any mistakes in exporting* excuses and apologies being of no avail* so that scrupulous care should bo taken with every order. Export goods should always receive special attention. The manufacturer must also enter the market with the goods the people want and not with the goods he thinks they ought to want.  The  exporter must always try and conform to foreign customs in order to i«  93 -  succeed in his export endeavours.  The theory of "good enough"  Is sufficient nowhere in foreign trading, and particularly dlsasterous is it when dealing with latin Americans.  The rule  should be to supply goods better, if anything, for export trade than those usually Shipped en domestic orders, since it is much easier to reetify any mistakes that may happen in the home market than thread*  Mere attention should be given to finish and fitting*  af these are what make the first impressions on the foreign purchasers. Goods nay have to be exceptionally tried, or varnish and enamel stay beve to be especially hardened in order to withstand the rigors of tropical heat. In order to meet the demand for his product it may be necessary for the manufacturer to slightly change his plant or machinery, the demand factor must be studied very closely and if it appears to be sufficient it will usually be practicable for the Canadian manufacturer to adapt his product to the demands of the market, rather than try and educate the market up to the point of demanding his goods in their unchanged form*  It should be needless  to say that on no account should a manufacturer change his manner of production unless the extent of the demand for his article warrants it. When it comes to the packing of the goods diligent care must again be taken*  Packing Instructions should have been requested  from the customer with his initial order*  These Instructions should «*  - 94 -  be followed implicitly because the importer is in a much better position to Judge of the rigors of travel., The importance of proper packing has been understimated in the past by most Canadian exporters, largely because shipping companies or marine insurance companies indemnify exporters for the direct losses resulting from pilferage or other damage.  This payment has made many shippers  indifferent to their share in the problem of getting goods safely and promptly to their destination. The fact that packing for foreign markets usually sells for methods radically different from those used in preparing goods for domestic delivery can not be too strongly impressed on manufacturers about to enter the foreign field*  The experienced exporter makes  it a rait to follow the instructions submitted to him, knowing that his customers understand conditions in their own country much better than he does*  Methods of marketing in those countries may require  units different from Canadian standards* Many Latin American countries have laws calling for special markings on all shipments. Customs duties may sail for special containers, weights or classifications*  The only safe and sane rule is to give customers the goods they  order and to ship them carefully as directed*  The recollection of  this quality and service will remain with the importer long after the price has been forgotten. In packing goods for export the Canadian manufacturer must provide for general conditions common to all ocean transportation and -*  - 95 -  for special contingencies peculiar to different parts of the world. Particularly in dealing with Latin American merchants mutt the Canadian manufacturer know the special requirements of each market.  In seme ports primitive machinery is used for  leading and unloading vesselsj in others modern facilities are provided*  Sat exporter must thoroughly study climatic condition*}  for the goods must be packed to withstand both the heat and moisture of the tropics, which may cause either mildew or rust* She goods mutt be packed to withstand frequent handling, jolting and bumping*  Many of the harbors of South America require ships to  hi anchored la the roadstead with consequent transference onto "lighters Such additional handling will require greater protection than would otherwise be noeestary*  Finally, in transportation to the interior,  travelling conditions frequently become very bad. Not only may the climate be tropital but heavy and frequent rains may fall, while the facilities for warehousing may be entirely inadequate*  The roads, or  rather trails, through the mountains are v ry rough and extremely narrow, so there is constant in jury from scraping against rooks*  In  order to traverse these trails transportation on pack mules is required more often than not*  Since the maximum load that a male can carry  is around 225 pounds packages should be carefully prepared not to exceed this weight.  Further precaution is also necessary to prevent  pilferage and thieving.  • * «  96  The above are but a few of the problems the Canadian manufacturer must face and solve when he enters upon trade relationships with Latin Americans, These facts can only be learned through personal knowledge of the market or through information supplied by the importer with his order*  These data being  ascertained the e porter has still to decide upon the practicability el the different materials from which he most choose his shipping package• He may use barrels, crates or cases, depending upon the nature of "tee goods and the amount of handling it Is anticipated they w i U receive. Whichever he employ* the exporter must be sure that the wood is the best, free from knots, and capable of withstanding all the exigencies of the Journey* these oases must be considered*  The weights and dimensions of  On the whole eases that are not  too largo or heavy are preferred, but they should be large enough to prevent easy orushing. An average dimension much In demand is three feet by two feet*  Frequently a number of small oases may be  very conveniently orated together into one package* Whore cases or orates are not used, bags or burlap cowering will usually be the moot suitable*  These bags can be made out of  either cotto* or Jute oloth, of different weights and sizes. The proper weight and slse can only bo determined by the nature of the goodt and the nature of the Journey.  Frequently over all will bo  placed an oilcloth or waterproof tarpaulin*  Such a procedure is  becoming more and mere common each year and often results in the saving  - 97 -  of losses arising from inadequate protection from moisture.  These  waterproof wrappings are more expensive than other forms, but the importer will always pa? for them sinoe they are in great demand in Latin Amerioa and can very easily be sold there*  Importers in all  the republics have always been willing to pay extra for appropriate and neeessary pasting rather than suffer loss from inadequate proteotion. The progressive Oanadiaa exporter will devote a great deal of attention to investigating market conditions abroad with a view to improving his packages. Experiments and experience will frequently show the superiority of one type of container ever another, but the exporter should newer change the shipping package without the consent el his customer. The kaperter will undoubtedly appreciate suggestlens ante by the manufacturer, but the final decision about the choice of the package should rest with the importer and not with the exporter* Many complaints are heard about merchandise having been stolen during transit. The goods are removed and the ease is then filled up with waste material 80 that the gross weight will be the Same as before* Thieves are now so skilful that great care must be taken to prevent their tampering with the packages* The ordinary packing eases can easily be entered so that better packing has become essential. If, however, heavier or more solid materials are used freight charges are assuredly going to be higher. The prime requisite for improvement in this line then is for a light package with some forts of b»» strapping. Thin steel hands or wire are strapped around  - 98 -  the package both lengthwise and around the ends*  Halls or Staples  should be driven around the Strapping at frequent intervals in order to prevent pulling or stretching. Box Strapping greatly Increases the Strength Of the package and makes the task of the pilferer next to impossible.  With the  use of strapping the thickness of the sides, top and bottom of well balanced and properly constructed wooden boxes can he reduced anywhere frost ft* to *& without reducing la any way the strength or serviceability Of the Hex itself.  Otis device results in lighter containers and  therefore la lower freight charges. Xt aetually lowers shipping oosts Oil Will for lows if expended on materials and labor. This fens of pafjtiftf alii helps to insure the safe arrival of goods at their destinationi thus eliminating, between exporter and Importer, any dlfficulties concerning the respoitive responsibilities of the parties. The use of box strapping is, then, in every respeot a real economy. A move of tali nature which is designed to lower the cost of distribution and increase its offioienay should receive the oareful attention of ail Canadian manufacturers and exporters who are anxious to eliminate needless losses or damage to shipments while in transit* In addition to knowing hew goods are handled en route to their destination, it is equally important that the Canadian exporter should have exact information on the operation of foreign tariffs*  Information  applying to the speolflo commodities la which the exporter Is Interested oan easily be obtained upon appiiaatloa to the Canadian Government at Ottawa or to such large trade promoting groups as the Canadian ManufaOturers1 Association.  -  99  In regard to Latin America as a field for export the Canadian manufacturer is oil an equal footing with exporters of all other nationalities*  Rone Of the republics give more favorable  treatment to the products of other countries than they do to Canadian commodities. Tariffs in general are high but as they fall with the Same severity upon all foreign nations Canadian exporters should not be intimidated by tills wall and consider that they are being disorlainated against. The all important fact to consider is whether, ia spite of tills high tariff barrier, the ultimate consumer •an Still afford to buy the ertiei*. If he can, the possibilities tttr sales should exist; if ht Sannot the Canadian manufacturer cannot •Xpert his product to that particular market* The fast that the same article is being manufactured and sold domestically at a lower pries than the Canadian firm oould afford to soil should be no deterrent. The Latin American Is keenly appreciative of <tuality goods and as Canadian goods usually excel domestic manufactures they San command a higher price and still sell In competition with the local product. This statement is particularly true of the more advanced of the republics, being less true for the more backward, but even in these backward regions sales of Canadian quality goods are increasing every year. Duties, as I hate said before, are usually high but the rates vary greatly  between the different republics. Thus the  possibility of sales may be nullified in one republic because of the tariff while is another a very large business may be possible*  It if  101 -  only by careful analysis that the Canadian exporter can determine whether he can export to one or more republics. In dialing with Latin American republics three methods of assessing the duty will he noticed.  The duty may be assessed on  the gross weight of the package, the net weight, or the legal weight. With the first the duty is assessed on the complete package, contents and packing bath. Withe second enJy the contents of the paokages era taken lata consideration, while with the third the contents pint the m i g h t of the immediate wrapping ef the merchandise (hut net the outside crate) are assessable. As most of the tariff schedules in Latin Ameriea ere based en grass weights, the lightest package, with the maTrtmtn degree ef safety, will be found the most effective. It 14 extremely bad policy, however, to try and save down to the point where the goods art likely to become damaged in transit*  Thus in  shipping to this field, with the consequent rough handling of the merchandise, the exporter must always consider the total weight of his packages and be en the constant lookout for new methods of packing which will ensure the required strength and safety yet at a less total weight* Even mora important than the above is the manner in which you describe your goods* Thousands of dollars are lest annually to importers through ignorance or carelessness on the part of our exporters This earelessness all roasts Upon the Canadian exporter as a direct less beoouse ho will not receive a second order and what might have proven a profitable field will become barren.  /  102 -  The very best procedure to follow is to request the Importer to supply an exaet memorandum of the declaration he desires in order te secure the lowest possible duty.  If you fellow his  instructions implicity there oan be no possibility of a mistake arising en your side in the filing of the invoices. Aeouracy in description and the proper declaration of materials is indispensable, •e every effort should be made te ascertain by what name an article should be designated in order te place It in the most favorable elsssifieetien. be specified.  The use to which the goods are te be put should also As a definite example may be Sited machinery,  In most  el the Letin American republics machinery Is duty free, but in some few mining machinery is exempt.  If the goods, destined te these  aeuntries, are described merely as machinery they vill be subject te a d-fcuy, but the mere mention that they ere fer mining purposes will allow them to escape this tax.  It is in such small matters as these  that the necessity of accurately understanding foreign requirement8 and laws is so forcibly brought heme to the Canadian exporter. In Seme Cases a high rate of duty is charged en a finished product while the component parts would have been admitted at a lower rate*  Canadian shippers confronting such circumstances should forward  the parts separately and instruct their customers about assembling the pieces after arrival*  In many ether instances the use of  ornamentation or special trimming upon an article will compel the eastern house authorities to apply a Schedule calling for a higher rate. •n  103 -  Here again It will be found to be a great saving to despatch the trimming under separate cover and to pay the duty upon it separately. One essential fact to remember is never to enclose in the same package articles dutiable at different rates.  In most of the  republics the duty lor the whole package is assessed by the rate applicable to the article calling for the highest duty.  Thus if  two articles are enclosed, the one calling for a duty ol 15% and the other lor only 1$,  thw authorities will in all likehood assess  botfc articles at the rati el IS£»  One can quickly see the enormous  less that may be sustained by the Importer through the eareless grouping el packages en the part ol the exporter* in chapter III  As I mentioned  newer Include catalogues or advertising matter In  any export shipment unless the importer specifically asks you to do so or unless you have previously scoured his permission.  One ol  the reasons why this grouping is so undesirable is that advertising matter frequently calls lor a much higher rate of duty than does ordinary merchandise, so where any catalogue or descriptive matter appears with the package the whole contents may be assessed at this higher rate.  Care must always be taken In shipping gooods to foreign  countries and is extremely essential to understand the workings ol the foreign tariff laws. The following are some of the main principles ol tariff regulations in the Latin American republics.  I  X  Filslnger "Exporting to Latin America" Chapter 14 - pages* 2SS * SS6.  t«  - 104 -  ftTRfffltfrlft  Most articles dutiable upon their legal weight. Shipment of articles of different classes in one ease to be avoided as a l l may be assessed the tax on the highest article.  Bolivia  No general rule for application of tariffs. Net, gross, or legal weights a l l prevail depending upon the different articles. No penalty for mixing shipments. Sams M far Bolivia*  2tti*  Tory oemplioated duties to bo studied separately. Bat? assessed upon gross weight of article. Goods subject to different rates of duty m y bo packed la tame eontainer provided the grott and not weights • I each kind if merchandise lo given. Otherwise highest duty applicable to all* Soot ruling as for Colombia. a  Duties levied t» all thro* weights. Dutiable either on cross or not weight according to classification. Dutiable either gross or not with no penalties for mixing* Complicated duties with heavy fines for mixing* QsJJJL ffflndw.a MaXiift  Dutiable upon not weight with mixing allowed, gross  •  Sams at for Beuader. '• Same at for Honduras* Ad valorem duties, packing being of l i t t l e Importance. Same ruling applicable as for Argentina* All three rates of duties used with heavy fiats for mixing* Dutiable upon gross weight, mixing being allowed*.  -  %flifflsOT Venerea 1^  105 -  All three rates of duty are in operation bat mixing i s allowed. (foods dutiable upon gross weight with the highest duty being levied upon all articles in the one container.  In the above list, wherever mixing is permitted, the articles have te be properly declared, with their respective weights. There ere flats for non-compliance with this ruling* Before actually shipping the goods the Canadian exporter must fee sure that the goods are properly stamped to conform to cut tens regulations, end also that all packages are properly marked so as to bo easily Identified*  Han/ oountires, and amongst them the  majority of the Imtitt American republics, have statutes requiring that all imported commodities boar an indication of the country of origin* Failure to comply with those regulations will subject the importer to fines of varying severity and the goods te detention in the custom house until the proper marking is placed upon them*  Since an "importer  is net favorably inclined toward exporters who, through ignorance ore more carelessness, cause him annoyance, extra expense and loss of time • and consequently jeopardise the good will of his customers • non-compliance with the marking requirements reacts as a boomerang 1 upon the exporter's business*" These requirements are to protect home industry from the introduction of low quality imported goods to be sold as domestic 1  Norman 0* Stew. Foreign Tariffs Division of United States Department of Commerce. Article in "Commerce Reports" of ; * January 14th, 1924.  - 106 -  products. The oonsumer Is also protected in that he can judge from the country of origin stamped upon the goods the excellence and the quality of the products he If purchasing. Moreover such markings protect the honest manufacturer from cheap imitations made to harm his reputation. Canadian goods are known in the markets of the world as quality goods and so such measures as these should be welcomed by all Canadian manufacturers rather than deprecated. These measures should protect e*r goods and make It harder for other countries to compete with our quality goods by subterfuge.  The word "Canada," however, is seldom  sufficient and should be preoedod by the words "made in" or their foreign equivalent. FinalJy we must consider the proper marks to be placed ttpen the packages for export shipment. Proper marking will avoid complaints, nen-dflivcries, losses because of delays, and numerous other inconveniences. Cases and packages for foreign customers are novor addressed to then personally*  All shipments are marked and  numbered with symbols chosen by the importer and exporter. There are many advantages to this procedure for it allows quicker identification of packages* Symbols are frequently distlnetife or dissimilar whereas names are not, which makes discovery of the former much more easy than the latter. The greatest advantage with the employment of symbols, however, if that it ensures secrecy*  It conceals the actual  names of the consignees from observers at the Shipping end and from competitors of the importer a at the other end. Also it makes it  - 107 -  much mere difficult for thieves to single out packages containing Valuable, merchandise from those containing cheaper goods. Below I are examples of a few symbols:  S K 0 MLP  U)  Genoa  Barcelona  801/100  1/100  ( »  U)  1ft marking and numbering packages it is essential that the marks and numbers conform in every respect to those written in the commercial Invoice, the consular invoice, the bills of lading and the ether shipping documents used*  in many of the Latin American  countries the importer is subject to a heavy fine if the marks and numbers in his shipping documents disagree in the slightest with those en the packages*  The conseoutlve numbering of the different packages  is essential to check shortages. Hone but the absolutely necessary marks should appear on expert eases*  Anything save the essential particulars serves  only to confuse* The essential marks are the symbol, or devise of the consignee, with the name of the pert of destination beneath. Below 1  M. S. Rosenthal "Technical Procedure in Exporting and Importing" chapter 15 - page 172*  :*  - 108 -  the number of the package will usually be found the gross weight, the legal weight, the net weight and the cubic measurement of the package in the system of measurements used in the country of destination, for Latin American countries, the metric system. Ail marks should be clear and legible, in a prominent position, and ineffaceable under all conditions. Tor this reason packages should never be marked with crayons, tags or cards. Many exporters paint the marks en with brush and indelible ink*  Better  •Wen than the tartan is the nee of a itencil and black paint, for the marks are then clearer and aire legible. In fact, some few cewatries, amongst them Chile and Bolivia, make stencil markings Obligatory with penalties for any ither form of marking.  On shipments  to thw Argentine Republic stencil markings are preferable but in addition to tow cymbal and ether narks watt also appear the name of thw steamer carrying the shipment.  1  - 109 -  CHAPTER VI  SHIPMENT AND SHIPPING PAPERS  Ikon the goods filling the export order hate been properly prepared and packed the Canadian manufaaturer still finds himself confronted with tho task of getting them to his foreign oustemer in the most expedition* and satisfactory manner possible.  Expert  shipping praotloos differ wary little from domestio shipping praetloes in the preparation of the numerous shipping papers*  These papers  aft very intricate and complex and scrupulous ears must ho taken that over/thing ho don* and noted properly, otherwise henry penalties will be exaoted from the importer* There is a great deal of detail work in the handling ef export shipments* Many Canadian eonserns, whose foreign trade comprises a large part of their business, maintain special export departments to handle th*ir foreign shipments. Those departments, of course, are familiar with export routine and th* speolal requirements of each foreign market*  Far more numerous than these eoneerns are  th* many small exporters who ship abroad only a small proportion of their production.  Tho total volume of their export business is net  - 110  sufficiently large to warrant th« establishment of a separate shipping department, so they make use of the services of freight forwarders, who are among the most helpful middlemen in all foreign tra>d«« Tht efficient forwarding concern will maintain an office or will have a correspondent in all the large industrial centres and ports In the world.  It acts as agent for both the exporter and  importer la the caring for tht shipping of merchandise. For tar purposes, though, we shall consider only tht services that the freight forwarder It able to glwt to tht exporter. Through tilt services of the freight forwarder the small expert concern will frequently be able to escape from tht minimum bill tf lading• Tfct sttamship companies all exact a minimus ehargt far the carrying of any merchandise, this charge usually depending upon tht amount of spaoc taken ap by the merchandise, or upon the weight of tilt goods* Frequently a firm will receive an order for goods, neither the weight nor balk of which, will come up to the minimum ehargt. If this fins ships these getds en a single bill of lading it will be paying a higher ocean freight rate than is necessary. By employing the servites ef a foreign freight forwarder it can escape this higher cost because the forwarding fins Is often able to combine more than one shipment on the same bill of lading*  Person "A" In Buenos Aires  may have ordered getds from tea separate firms In Canada. If each Of thtse firms despatches its products under separate bills of lading, the sttamship company will collect at least its minimum charge from a l l %  - Ill -  Tha charge for soma of the concerns may fall below this minimum rata so they will ba losing money.  If tha services of a freight  forwarder had bean employed tha goods from all tan firms would have bean combined under one bill of lading and tha rates assigned on a pro rata basis*  The minimum bill of lading clause would have been  evaded and all would have saved money.  Tha Santa is equally true if  one Canadian flans is exporting a small order to each of tan firms in Bmeues Aires. Here again tha employment of a freight forwarder will result la a reduction at charges. The forwarding eonoern will group all tha products under ona bill of lading consigned to Its correspondent in Blame* Aires. Upon arrival of tha steamship this firm will distribute the passages to tha ultimate consignees according to instructions. Besides this indispensable service of tha freight forwarders in the combination of small shipments, they afford another great service to the small exporter by attending to all shipment and consular papers.  These men know the exact legal requirements of every country  and the proper preparation of each document to meet these exactions. This attention to all shipping papers is in itself a very great help to the small exporting concern and one that is all too frequently overlooked by the Canadian manufacturer and exporter. The charges of the freight forwarder vary with the services rendered, depending upon the part of destination, the volume of other shipments to that port, and upon the volume and character of the individual shipment. Some slight profit will also accrue to these firms because of the slightly advanced prises they may be able to  - 112 -  secure for the carriage of goods entrusted to them. This profit will oome through the combination of shipments whioh would otherwise DO subject to a minimum bill of lading* Canada it a young country slowly becoming industrialized and expanding Its exports* Each year we see our foreign trade growing IS volume and with It the facilities for Its conduct. There are a great u m b e r of Canadian firms desirous of engaging la foreign trade that are deterred from doing so through the cost of the Individual •kipment or through ignorance of opportunities*  If those firms would  avail themselves to a greater extent of both freight forwarders and export commission houses, in both Canada and the United States, our trade would be even greater than It Is and the small manufacturer ^™ flp^w^fc'Sf e^np  <a^p#e^j^p*  s o m o w y&  W%P • ^F %#<e»  ws*aeje w  ip*^^**  vonr %F*m  W^F  C*WOP*^  ^^ Mr J*^^  v^a*w^fc •••••^^^^  w£eK*w  shut in hie foot* 1 now with to spend a little time studying the different shipping papers that any concern exporting for itself will have to handle*  She papers whioh must accompany any foreign shipment are; -  the snipping permit, the dock receipt, the bill of lading, marine lnsuranoe papers, commercial invoices, consular Invoices, and sometimes a few miscellaneous minor papers* Different countries require different numbers of these papers and so only general information can bo given concerning them* For the requirements of any one particular country the exporter will have to look up some authoritative source dealing with suoh information*  . «  - 113 -  The first paper necessary for a foreign shipment to go forward it only of minor importance. This paper is the shipping permit and is received from the steamship company with whoa the exporter or his agent enfagss shipping spaoo. This document is in the nature of a notification to the clerk at the shipping dock to assspt oertain named tmantities of freight when tendered between oertain dates* flswavlly goods art not accepted on steamer dooks without the production of Mail a document. When all tht goods listed la the shipping permit hate been resolved the shipper will resolve a doth receipt, a paper fifatd by tfcs receiving clerk and acknowledging tht reoeipt of strtaln sjssa for dtspatoh by a certain steamer*  This paper will usually  w i i a r t W the weights sadrntasw— o n t o of tht goods. This deck retelpt li ohUfly useful la settling liabilities la ease a boat is missed. Sals receipt has to be later exchanged for the formal ooean bill of 1 lading at tht sttatashlp company's office. Ont of tht most important documents in all foreign trade if fat ottaa bill tf lading. Possession of this bill, properly drawn to a shipper's own order or to a specifically named consignee, conveys ownership In the goods represented by it. Rentt it is an extremely valuable document and is of utmtst Importance In fortign dealings. But before the shipper can receive his bill of lading export goods must bt cleared through tht custom house. A manifest, or shipper's export dtclaiatlon mast bt prepared by the shipper, stating the ship by which tht goods ore to bt despatched, destination of the goods, marks and nwmbers of tht packages, kind of goods contained, their weights and j ,  1  B. 0. Hough  "Practical Exporting" Chapter 12  pages 410-411  - 114 -  values, etc.  All these fasts must be sworn to and it is from such  papers that the government is able to compile their export statistics and statements* After this declaration has been duly attended to the exporter can reoeive his ocean bill of lading* Bills of lading must be written by the shipper, er his agent, upon f arras supplied by the steamship company.  In the blank apaaea of  the bill of lading the exporter writes the specifications of the shipment. She Marks and numbers of the packages are stated in order to identify the goods when the steamer unloads. The porta of origin and destination are alas atated.  A fall description of the merchandise la given including  the masker §H type of packages, the gross weight of the goeda and the nana ay which the merchandise is known and olaasifled.  At the foot  ef the bill of lading a apace la left for a statement of the number of billa of lading the steamship company signs. As banks insist upon receiving all the signed copies they use this clause to check up the 1 number of billa of lading which the exporter gives then. The ocean bill of lading is thus both a receipt for the goods stipulated therein and a contrast on the part of the carrier to transport them to their destination. The number of billa of lading to a aet varies according to the requirements ef the atearaship companies and the foreign consular authorities. From three to eight copies usually are necessary, some of then being negotiable and the others non-negotiable. There are usually  1  Morris 3. Rosenthal - "Technical Procedure in Exporting and. Importing" - chapter 6, page 45.  - 115 -  two or three "negotiable" copies, these being the ones signed by the steamship company. The banks require every negotiable copy issued to be plated in their hands when they agree to finance a shipment. The reason for this demand is the possession of any ons "negotiable" copy ef the bill ef lading is euffioient, when properly endorsed, to convey ownership of the goods. As the banks have eontrel of the goods until the payment ef the draft* and consider the nerohandise as collateral for their lean, the bank's security 111 the goods vanishes if a single negotiable espy is out of its pSMSSSien. The nea-notetiuble copies of the bill of lading may be used is ssvsral ways but It is only thess negotiable espies that are ef extreme Importance in international trade* All negotiable copies ef a sat ef bills Of lading should be endorsed by the individual *ww  ee^me^ ^^s  w^w  ^sswmwps^w  ^w^ " a v s  V#S(WP^S  sme^ ^S •esswpew  ^mflwejwfc w ^sia em eff^ve* m  ^^eek^fc^w ^w ^w  t>* w s r v * ^TST  endorsed these bills ef lading are useless fa the hands of a third party, such as the bank. It is not enough to endorse only ode of the negotiable copies. All should bear the required endorsement, but in no event must the endorsement of the original be omitted. Being negotiable, any sue copy of a fill of lading provided it had been secured honestly by the person presenting it, is sufficient to give title to the goods* Ts«day the "order" bill of lading is the form predominating In foreign exporting. Few bills of lading are made out directly in the nans of the foreign consignee unless actual sash has been paid to the exporter or when the goods are being financed upon open account  - 116 -  or some other form of security or guaranty. bill of lading should be drawn"to order."  In any ether case the That la, the bill of  lading will be made out to the order of the shippers and the gooda will therefore remain in their poaaeaaion. No one elae ean secure these gooda until the offieial endoraemant of the ahippera appeara en the bask of the bill of lading. When this "order" bill of lading il employed the ateamahip company will be requested to notify the sonalgnee upon arrival Of hie gooda. The eonslgnee muat claim the goods If presenting a properly endorsed bill of lading that has been despatched through the m i l t *  Otherwise the goods remain in the dock  warehouse with charges aoerulng against the account of the impertera. The only way that anyone can assure poaaeaaion of the gooda, for whien he ia not able to preaent a title in the form of a properly drawn and endorsed bill Of lading, ia to furaieh a bond to the ateamahip company in auffloient amount to indemnify them againat all poeelble claims tn the part of others who secure suoh a duly endorsed document. another document of extreme importance in expert dealings ia the marina Insurance certificate.  Ocean steamships are epoeifioally  exempted by the lava of nearly all countries from almost ewery form of liability exsepting when loas or damage arises from negligence or fault directly attributable to themselves. Praotioally all other risks have to be assumed by either the shipper or his consignee unless •OaM form of insurance protection is eeoured. Every manufacturer or shipper of goods matt invariably oovor his shipments by appropriate insurance or awe that others do so for him.  Insurance must never be  - 117 -  overlooked or forgotten because then nobody will either handle or finance the shipment for him. Cu$tcanary procedure demands It even though the Importer may feel inclined to take the risk. Shipments are always insured for the benefit of the oonslgnee, the cost being Included in the Invoice made out by the exporter, and lneluded in the draft remitted by the importer in settlement of the transaction*  fine* It is the importer that ultimately pays the  Insurance eeet he should Instruct the exporter a* to the form of the inswaitee which he desirei and is willing to fay for*  Manufacturers  should always ask their customers for inetmetiens in this regard, and fellow theie instructions implicitly.  Whenever.quoting prises  on a. 0*1*9« basis the Canadian manufacturer should be sure to stipulate what fersi of Insurance applies*  This foresight will  Insure that no complications or bickerings inn Inter arise over n mlssDiderstandini of the Insurance protection afforded by that quotation. She contract which the shipper makes with the underwriter li known as the marine Insurance policy.  In It are set forth in  detail the rights and liabilities of both parties to the oontraet* The terms of the policy will wary aeeerding to the requirements of each individual shipper, hut the general principles of mar inn insurance as outlined herein ore suffidontly broad to apply to almost all eases. Marine insurance is intended to protect the merohan* against accidental damage to, or lets of, his merchandise and not against damage or lens due to the Inherent nature of the goods, inferior paining* negligenoe in handling the raerohandise, or the  118 -  general wear and tear to which shipments are subjeotod. Under the staple marine insurance polio> protection if only given agalnat strictly "marine" perils properly lnoluded under the teas "perils of the sea." any other losses.  It Is not intended to cover  Ike only damage* the underwriters will bo liable  tor under auoh a polioy are those direotly traooablo to perils ol the eon* Ifcoee perils are usually enumerated in the polioy and damages under those heads only tan bo recovered* The polioy dan. hosiNi t bo extended to inelnde almost a l l risks by the payment of OB onhtustd premium. b> doing so i t i s possible for a manufacturer to insure his goods from the instant they leave Ids featery until tfcoy arrive s i tfetir ultimate destination j to Insure thorn while being oarried by roil* steamship, or any other moans of transportation! to insure them against fire, theft, leakage, breakage, rain, hoat» end even against mule-back transportation dangers of the latin Ameriean oountrios. Wherever possible arrangements should be made to ootor everything and to take out insurant* of this lost mentioned variety*  The premium shargos will bo slightly higher, but at the  most the ohargos are so low in proportion to the risks covered and the security given that this form of insuraneo i s being adopted more and more every day* Hiis protection, however, i s a matter ef agreement Til wswssi the importer and the exporter as i t is the former that finally should decide upon the form of marine insuraneo to bo taken out* 1  M.S, Rosenthal "Technical Procedure in Exporting and Importing* * Chapter Id • page H O .  - 119 -  la any insurance policy there are oertain technical terms that are always used and which deserve seme m naideration. Usually the policy will preclude the payment of petty damages. Nothing will he paid unless the damage amounts to a certain prescribed percentage, about 9% in ordinary oases*  This limit  it known as tiki "franchise" and la suoh event the policy will read "warranted free from particular average unless amounting to ...... pereent*0  But commodities so insured are nevertheless protected to  « IWloijl extent against partial loss* The technical insurance term lOT m partial lost to * shipment it "particular average."  The  torn "partial loss" It praotioally aewer wood. The perils actually tmenred against art saumesated in the policy and if a shipment arrivoa at dostiaation partially damaged, to a greater extent than the "franchise," ay one of theee perils the loss Is collected from the underwriters. She Indemnity collectable from tat inauraneo company Is flu differenoo between the "sound value" of the goods and the "damaged value."  The former it the selling price of the  goodt on the market which they would have brought in a perfect condition and the latter is -the price they actually do bring in their damaged ooadition. Frequently a "general average" loss will be sustained by all who ship by a oertain steamer. This loss occurs whoa it becomes necessary to lottlsoa part of the cargo In order to save the veatel and the rest of the cargo from total doatruction. Zt It obviously quite unfair that the owner of the sacrificed merchandise  - 120  Should boar the entire cost in order that the ether shippers and tho owners of the vessel may be able to save their interests. For this reason tho shipowner and all the shippers share in the less arising from tho oaorifiee on a pro rata basis* Tho sacrifice of a portion of the oarge or of the vessel most, of course, bo voluntary, and must only bo undertaken whoa the danger, tho captain is trying to avoid, threatens all tho interests in tho ship* The loss or expense must bo fair or reasonable in proportion to tho anticipated danger and tho est must bo in pari suooossful. Ho d a t a for tho logs of merchandise already useless is valid* Sao types of losses ^pca^vwim^ ^w» ^s» w J ^ w ^ m A e *v^v** ^W^P |Q»^*W#^*^»I» ^m^a ^» w ^ w ^v^s^sr  ^••*»^sff»^» *^  ^™SP ^F *W*SS****** ^^^s^sm • • • •  latirtior and arc usually enweratcd in tho faoo of the marine insurance policy* If on entire shipment is lost or damaged, but not a general average loss, oo that the cost of salvage will exceed tho value of tho goods after their reeovary, tho aerohent collects from the uadorwritero the fall value of the shipment* Xa declaring values for marine insurance no proof IS necessary* 9 M insured value i s accepted as the indemnity value in ease of lots* If you evaluate year seeds for 98$ above their actual value and pay tho premium oa that evaluation you will receive this extra m% in ease of total loco of the goads* If tho goods ere undervalued you will receive tho price you evaluated them for and no aero. The shipper pays hie premium upon tho evaluation of ale goods given in the policy aad in oases of leas this Is the figure to bo reckoned oa in the sottlement of a l l claims*  *  - 121 I^rge exporters of goods to-day use the open policy of marine insurance. The polity nay he for a certain period of time or to cover insurance up to a certain prescribed figure* As each individual shipment is made the shipper notifies the insurance company concerned that protection under the open policy is required for certain values. The goods are adequately described, the name of the boa* given and the onto of tailing. The risk thus covered is endorsed on the open policy and a ctrtificate of insurance is returned to the shipper. This certificate takes the place of a separate marine insurance policy for every shipment, and is the document that If to-day usually handled, sent to the consignee abroad, and used by the hanks as tut tf thtir deoraent* necessary for the financing of any foreign transaction. Premium charges on such policies as these are usually settled monthly between the shipper and the underwriting company. When entering a claim for a lost the assured must file Certain documents with the insurance company which will constitute proof of the lost and interest in the shipment* The collection tf claims for loss or damage is usually assumed tt be the duty of tht consignees, but will frequently be performed for them by tht shipper, usually at a matter of courtesy and convenience. Tht documents that must be filed with the underwriters art those necessary tt prove your claim. The first of these documents is some evidence that tht goods have actually town shipped. For this purpose a bill of lading is usually deemed sufficient. Ntxt you must show your  - 122 -  title to tht lneurenee.  Ibis title will be oonweyed by a  certificate of insurance suitably reindorsed to the perJOn expeeted to make the collection.  The third document necessary  la aaa shoving tha amouat of tho damage sustained.  The moat  acceptable la tha formal event atataraaat of tha repreaeatetiwe af tha insurance company la tho port of tha importer.  PaiUag  thia deouownt, tha offlolal statement of tha ouston house authorities, certified by tha raaldaat aoaaal of Great Britaia (siaaa we have at eve* Oaaadlan af tlelals la Latin America) may be tubetltuted. A fourth doeument acquired la a aertlfleate daalcaatlag tha eausa af tha damage, aad lastly, a aapy of tha commercial invoice la usually required.  Zf all thaaa documents are submitted la daa fans,  thare U aa reasoa why a legitimate alalia should aat be promptly adjusted.  If aay of than are missing tha underwriters aa teehnloal  crauada nay delay payment a a t U the deeumeat la produced. tha only other daatsseata aeaaaaary for us to disauas la thia chapter are the Invoices, both commercial and eoaeular. Thaaa invoices, partloularly the  oasular involoes required by  practically every Latin American republic, are extremely fornldable daaumenta aad la aa other phase of exporting la exaotness aa essential. Ha Indefinite or iaexaat atatament la tolerated, and tha smelleot mistake aa tha part of thaflSjnadlawshipper la making out the as docum«nti any be punishable by exceedingly heavy f laaa.  Xa doing  any business, aa matter haw large or email, with oountriea requiring  1  Ixtraets takea from artielee aa Marine Inauranea takea from tha "American Bxparter" from time to tine.  - 123 -  these documents customers should always be asked to git* explicit instructions as to how goods art to he invoioed.  It is far wiser  to follow these instructions than to take the advise of anybody •1st, X dt not tart who your Inforaant may bt. If you follow the instructions of your customer he is the person liable for mistakes tad no blame tan ho attached to yourself. The commercial invoice is the lmporttr*s notation of goods dispatched it him*  It contains full particulars of the shipment Just  as did the hill of lading and the insurance sertifltatt. It will he netlsed that those details, such at the marks and numbers of the packages and a full description of their merchandise contents, are included in all the shipping doovkaents. Eath document must agree absolutely In all the information sot forth. Besides these details the commercial invoice also states the neat of the stwaaer, the name and addre s of the consignee, the contract number, the code number for the whole shipment, and a code word for oath separate item in the shipment if possible, the price per unit of the merchandise and the total amount of the shipment. The terms of the Sals, that is, whether P.A.3, Steamer or O.I.P. port of destination, and the terms of payment whether sight, thirty day or sixty day draft, are also stated*  Abbreviations should never he used  as foreign importers are unfamiliar with meet ef our domestic abhfoviatlons, and besides, the Same word has not the same moaning the world ever.  - 124 -  Tho aasAir ol copies of these commercial invoices vary with the laws of the different countries and with the needs of the different parties to the contract. They should usually be made out la triplicate, the original signed copy being deapatohed dlreot to the importer. For the Latin Aserioan republloa they should bo accurately prepared In Spanleh to faoilitato the oloaranee of a shiyseat and also aa a positive means of dove loping future trado. all those invelece should invariably ho signed by someone is authority aa otherwise they have no logo! tere* is eeesy eeuntriea. The consular invoice ia one of the soft important doeumonta is tho forwarding of geoda to Latin American oosntrioa aa it la required by absoat t U tl them.  "Theeo inveioes aorvo to determine tho value ol  tho eoeds imported, and axe virtsally ooploa of the oommorolal lnvoioee, being as itemised samoraadum of tho pre dusts inoluded Is a shipment, their exact value, etc.  The importance of those doeunents la ao  groat that lit tho coco of largo export firms in the United States these invoices are prepared sudor the direction of one employee thoroughly 1 acquainted with tho oonditiona in the various oosntrioa."  Thia  oare will ensure that ov ry possibility of error may be avoided. tho consular invoice ia nasally printed in tho language of the country of destination of tho goods* It must bo presented, along with tho bill of lading, to tho reaident consulate of tho importing Latin American republic In the Canadian port of shipment* The shipper, or some authorised representative of hie, meat swear to 1  E.B. Filsinger. "Exporting to Latin America" chapter U • page Iff •  *  f'\l  Zf*r ;  - 125  the authenticity of the statements mad* therein. A a with the •onraereial lnvoioee and the other shipping dootsaents that we have dealt with, toe masher of eeples required in the different countries differ* fren three in Argentina te seven for Paneae.  feiiSif.^i:affijViitii'  -'i •r  -  —  —  -  •  "  -  -  - ia$ «  CHAPTER Til  THE FINANCING OF CANADA'S FOREIGN TRADE  la financing his foreign trade the Canadian epporter w i U htm  te decidewhich of the many t o m e el payment he will  . require from hit eaateaers. He will find it iaperatlTo to adopt a eredit policy eenferming to foreign customs and conditions and suited to the financial status ef both himself and client, and aleo to the natnre of hie exported product. In modern hnainoaa eredit is a neeessity*  Admitting the need of this eredit, whereby the buyer  will he penaltted t# pay for Hie goeda at acme time after he receives them, the problem ia to develop a safe and sane polioy. There should be no doubt in the minds ef broad Canadian business men that the future of our expert trade depends very largely upon oar willingness and ability to extend to our customers liberal credits. The peculiar character of the Latin American markets male long time credits there absolutely Imperative. One ef the complaints meet frequently made by these merchants is that our exporters often refuse to grant eredit and insist upon payment before shipment*  One  has but to realise) how difficult it would be to establish a domestic business under such conditions to make it apparent why trade with latin America cannot be built la that manner.  s - ItT -  It If only In countries which are highly developed commercially that payment for merchandise ean be aeoured promptly, but even with those some form of oredlt is usually extended.  Countries  those wealth and comaeroial transaxtions depend entirely upon the exportation of products of the sell cannot teeure In return the many manufactured products necessary for the further production of these raw materiel* without very liberal credits. Besides this fact importers ere frequently financing the natives and arc compelled to wait for their money until returns can he had from the crops. They are extending credit and mast commit credit in turn. Hi* greatest need of the Latin smcrtsaft Is for Capital and credit. IcrCpCan exporters to that field grant from four to six months credit to the importers. If Canadians ere to he successful there they oust meet ccmpctltien and grant the same credit facilities. The American manufacturer who has intelligently eeaght business in Latin America has proven through experience that, by observing caution and by pursuing the Came cars as in the extension of credits at home, his losses there have been practically nil. If this ic t he experionee of the succecsful American exporter I can eee no reason why It should not also prove to be the same for the Canadian. The extension of credits is a simple,sound and cafe branch of marehandising. Primarily credit is a means to increase business and so the foreign buyer favers the manufacturer and exporter who extends a liberal "line" of credit*  But no merchandise should be  shipped en credit terms until a thorough investigation has been made of the financial worth and reputation of the consignee and until the  V  - 128 -  shipper is assured that all oredit risks have been eliminated. Saoh ease moat be teeted en its own merits, but  he important  element in the credit is not the amount of the loan, but the tine extended.  The inexperienced oredlt man will figure only en the  length of tine hj is willing to extend, while the experienced man leeks primarily at the time AgeJ&d, by the buyer. The time element la credit 1$ mot merely a matter el whim.  Credit, to be effective must  enable the buyer to pay his obligations from the proeeeds of his sale. It should mot be difficult for the Canadian manufacturer to Secure, with little of no delay, reliable credit information about houses In I«tin America that send in orders for the first time. The foreign trade depar'taents of the large Canadian banks keep a very complete file of the credit ratings of the large import houses abroad. Those lists ere kept right up to dato at all times. If the bank in question has not Immediate information to give upon any person in the field it tan quickly procure -this information from one or more of its correspondent banks in the country ef the importer.  In most instaues  the credit rating given will include a statement of the prospective customer*s financial standing is regard to assets and liabilities, but in all cases it gives at least an estimate Of his worth and some information about the experience ethers have had with him.  The securing  of this data is a very great service that the Canadian banks are in a position to render to their customers but one of which the average Canadian merchant seems to be ignorant or else very slew to avail himself.  - IZ9 •  Besides the banks the large commercial agencies, such as R.G. Don and Company and Bradstreet, have on file very estensive credit reports. If a report is not available dither will promptly communicate with their foreign agenoies and send the exporter a •tatenant as soon as It is resolved. A small let will be charged for such information of course. The files of the Canadian Manufacturers' Assoaiation or the National Association of Credit Hen are two other sources from which Very reliable information may he secured, data from these ftesroes being the meat reliable and the latest available. These statement* show the actual experience which different exporters have had in dealing with an Importer and they are of far greater value la determining the amount of credit to he extended than Is the general information which Is supplied by a hank or commercial credit agency. There are ether sources to which the Canadian manufacturer might turn In his quest tor reliable credit information, amongst them being the credit files of the trade papers and feurnals interested in developing cur exports abroad, the references supplied by the Importing house with its order, and m y data which the manufacturer might have been able to secure from his traveling salesmen or lotal agents abroad. This Information will ell he very reliable and good but should be used acre at a supplement to other ratings than aft a eele basis for the extension of credit* As a rule credit Information about foreign houses is not nearly wo detailed aft that which the Canadian manufacturer is accustomed to receive concerning his domestic customers. la particular, credit  - 130 -  reports on latin American merchants are usually extremely terse but very reliable*  Financial statements setting forth the assets  and liabilities of a conoern are rarely given and should not be asked for because the request will be considered as very offensive. The Latin American la extremely senaitive on such matters and great •are should be taken to avoid all such allusions whenever possible. Foreign banks do not give as much information about foreign importers as do the Canadian banks about our own domestic firms* The mare statement by a bank that "the merchant Is worthy of credit," because it is usually such an honest and conservative account of his position, Is enough to lustily the Canadian exporter in granting fairly liberal or edits. If he adapts this procedure in the oolleotion of reliable eredit data and the outlining of a oredi* policy the Canadian manufacturer should experience no difficulty whatsoever in financing his affairs Or in the collection of his accounts. The financing of exports is neither difficult nor complicated onae Canadian manufacturers understand the basic principles. The transasUon fan be financed eithar by the exporter or 1ae importer, I shall consider first the procedure from the side of the former and then speak very hurriedly «f the methods by which the importer can finance the business. The exporter has his choice of doing business by open account*, by sash, or through bills of exchange, the last being -fee international msdittm of soxmasrelal settlements today. The demanding of sash with the order is usually z vary peer |A foreign trade, No eredit is given and the transaction is frequently spoken of aS toeing sold end impersonal. Under such conditions and  - 131 -  surrounded by such an atmosphere it beoamea practically impossible to build up permanent trade relations. The buyer objoots to this method of payment because he is paying for the goods possibly three months before he actually receives them his funds are tied up for that length of time, and any farther delays that happen to the shipment mean am added legs to him. Whenever possible, then, the demand for "Oath with order" should be avoided* It will* however, be impossible for the Canadian manufacturer to extend credit unless he has received satisfactory information concerning the financial rating of his prospective customer. So credit should be extended unless an Investigation shoes that the enetomer is worthy of credit. Only in dealing with first orders from unknown oustemers should the demand for cash he necessary. Future orders should be undertaken en a credit basis for by that time the rating of the customer should be known. A possible substitute for the "cash with order," where the Canadian exporter is disinclined to grant credit, is to make arrangements for the importer to open a bank credit 1 la favor of the exporter. A second method open to the exporter is to grant "book" credits, or, in other words to finance his exports by open account. Ibis procedure is very common in domestic dealings, hut the peculiar eharaeterlstics of foreign trade make this method the exception rather than the rule in financing inverts and exports* Banks refuse to handle this form of account in their discounting business sc the average manufacturer cannot undertake to market his products abroad en such X  for a discussion of this phase of the question eee page Stt. I34>.  * 132 -  a basis.  The Oapital of the seller i s usually tied up for an  indefinite length of tine as the open aoeount i s virtually an extension of eredlt wita no time set.  It tends to lead to orer-extentIon of  eredit as veil as involving speoulatlon in the foreign exchanges. Few OananMan firms ere in a petition to undertake the financing of any, of their trade by this method, and recourse Is made by them to the bill of exchange. By far the greater part of the world's foreign trade is to-day financed by wmum ef drafts or bills of exchange, A definition of a draft •# given in the English Bill* of Exchange Aft ef 1882 i s "An unconditional order in writlag addressed by one person to another, signed by the person giving i t and requiring the person to when It is ftddretaed t* pay en demand or at a fixe* or detersdnable future tine ft certain sum of money, to, or to the order of a epeclfio person or bearer."  The shipper draws on his customer, endorses the draft  and then places i t with his bank either for discount or collection. la financing his foreign tirade the Canadian exporter may draw either of ten types of drafts en his customer, known respectively as •dean" and "documentary" drafts.  The former is one that i s unaooon-  panied by any documents and i s only drawn in canes where the eredit Of all concerned i s beyond the leant ouestion of doubt. A "documentary" draft Is ene to which the shipping documents are attached* The negotiable get of fee bill ef lading, drawn te the shipper'• order and endorsed by bin, ie the chief document giving the draft i t s name. Ian pesseseioa of these bills of lading confers title) te the shipment upon the holder of then, ee that the "documentary" draft protects the*  - 133 -  shipper*I interesta, as the consignee cannot secure the goods ant 11 the terms of the shipper have been complied with.  These  documentary drafts may he drawn either "documents against payment" or "doowmonts against acceptance."  (D/P or D / A ) .  The possession of  idie documents Is neqessary before the goods eon be secured by the Importer. Under the D/P draft he most pay the draft In full before the do assents will be surrendered to hist* Frequently, however, the Importer will be permitted to secure the documents merely against the acceptance cf the draft, that is, by writing "accepted," together with the date and bit own signature, across the face of the draft. The draft is thus converted from a more order to pay upon the part cf the Importer to a promise to pay, and is then much more easily rodisoounted by the bank holding It* The security of the shipper under the D/A draft Is not quite so great as under the D/P draft, but since It is still far greater then under a "clean" draft, this form of financing is becoming the accepted one in international dealings today* Foreign drafts are always drawn in duplicate or triplicate with the term "First of Exchange"  or "Second of Exchange," whichever  the case may be, stamped upon them. Any cf the drafts become void after one has been paid in full. Mere than onoecepy is made out in accordance with the usual custom of making shipping papers in duplicate or triplicate because of the possibility that one set of documents will be lost in transmission.  Drafts arc, as a rule, drawn to the order of "Ourselves"  and rarely to the order of a spoolfio payee. They are then properly endorsed and become negotiable instruments of exchange very easily discounted by the banks*  „  - 134 -  In order for these drafts to he negotiable the maturity date mast he definite, either sight or some determinable future date, and the draft must he drawn for a specifie amount.  Sight  or demand drafts necessitate payment icmediately upon presentation. However, in dealing with markets like South America, mails move by fast steamers and the goods by slower tramps*  The documents always  arrive In the market Before the goods so the custom has grown up of withholding the documents until arrival of the goods* The other form of draft is the time draft which calls for payment a certain length of time after sight or after the date on which the draft is drawn. Time drafts are thus drawn either after date or after sight*  Foreign hills of exchange are usually drawn  at thirty, sixty, or ninety days sight* hut because of the slow movements of the ships and the infrequeney of the mails, much of the business with Latin America is done on the basis of 150 or 190 days si ;ht. In deciding how long a draft should run the Canadian exporter must take into consideration competitive conditions in the country Of his customer, mods of travel Inland if necessary, the mail time out and back, and his own ability to have the drafts discounted with his hank or to stand the burden of having his funds tied up until the maturity of the draft* Before leaving tile question of foreign trade finance I wish to mention the procedure that is usually adopted if the importer agrees to handle the financing of the shipment*  The importer will arrange  with his bank to open a credit in favor of the exporter at some bonk in Canada*  Those credits are usually opened by moans of a litter of credit*  * iss  Funds will be placed at the disposal of the Canadian exporter subject to the apeoial terms of iite contract entered into between the importer and his bank*  The usual arrangement is for payment to  the exporter to be effected when bills of lading shoving actual shipment to importer are presented.  The foreign importer knows that  bis monejr will be held for him by a responsible banking bouse until the goods are shipped*  She exporter knows that his money is available  to him just as soon as the merchandise is despatched.  Both the importer  and exporter will be duly satisfied by the agreement and the suggestion of a bank oredit by the exporter will invariably be found to be more desirable in every respeot than an abrupt demand for "cash with order," There are a great number of forms of foreign credits which may be opened by the Importer in favor of Hit exporter.  Essentially,  however, all ansa credits simply require that an Importer la a foreign country go to his local bank and arrange with It to instruct its correspondent in Canada to pay a certain amount of money to the exporter in Canada upon the fulfilment of certain specifications*  The instructions  necessary to be filled before the exporter Can get sis draft discounted arc contained in the letter of credit.  It is through the employment  of such an instrument that the importer finances the shipment. * A letter of credit is a letter Issued by a bank authorising a specified person, firm or ooaporation to draw on a banker for an amount not exceeding a stipulated sum and guaranteeing the acceptance and payment of those drafts if drawn in compliance with the terms set forth in the letter.* or "uueonfirmed*"  These letters of credit may be either "confirmed"  The former is often spoken of as an Irrevocable  - 136 -  letter of credit and i t carries vita i t the guaranty of the banker to pay the exporter when he has fulfilled the obligation* set forth in the letter of credit.  This form of the credit cannot be cancelled  by the lowing bank prior to th* expiration date of the l i t t e r if credit without the oonoent of the beneficiary.  An unconfirmed or  revocable letter of orodit sarries the same guaranty to pay the exporter tinder tin torms sot forth l a the letter of credit, bat unlike the former, It can bo cancelled or revoked by either party to the transaction. the confirmed or irrevocable letter of orodit i s the type that should always bo requested by the flanadtaa exporter for under i t ti* i s fully protected until the expiration date of tits credit,  ^nder  th* unconfirmed or revocable letter of orodit, however, i t would be possible for the exporter to prepare shipment and thou have the letter of credit cancelled before he had boon able to present IhO necessary docunwnts to the bank and secure payment* Recourse can bo had to the lav courts but such litigation i s usually very expensive and seldom satisfactory.  For those reasons a l l Canadian exporters should insist  upon the confirmed 1st tor of credit* The method of financing foreign trade by means of the letter of credit hat decided advantages for both the importer and the exporter and i s possibly the most satisfactory method of any yet devised.  T  he  principal advantage to the exporter as we mentioned before, i s that he i s Virtually certain that he will obtain cash for his goods upon shipment or else that the time drafts against his customer w i l l be met s t Sfcturity*  %* exporter, with this antecedent agreement that bis b i l l s *  * mt «i!U be honored, has hit credit risk and financial responsibilities reduced to a mininnm.  Full responsibility then rests with the  accepting bank* The advantages on -the Bids of the importer, while not quits se apparent, are newer theless real* His tends are arrays in salt hands wntil the goods are actually despatched to him and he i t relieved of tan necessity or danger of supplying "sash with order." Then exporters, as a rule, name acre favorable terms to the Importer who supplies them with a Utter of credit than Uwy would when they are ferwed to draw #***« and so assise the credit risk toemselves.  • 138 -  Parti CHAPTER T i l l  CANADA'S BOONOUXO OtfTLOCK  "Tht twoatioth otntury balonga to Oaaada," ouch m i tho tayiag l a IfOO.  A quarter of a otntury hat aow paaoad but I t hai  ill no way diamtd Hit optlaian of Canadian*.  Oaaada i t a now  OOuntry tht rtaourota of whloh art oat now ooanonolag to bt r*411sod, oaaprlaing twory phato of agrloalturo, larabtring, ninlng, f l i n i n g , trapping aad mamf aoturing.  In a l l t h t aurfaot hat martly htta  • t r a t t h t d and tho dtvolopaoata of t h t ntxt f i f t y ytart abould aurpaaa •fan t h t rtoarkablt progaoaa of t h t l a s t half oantury. Today Oaaada i s ratognittd aa ont of tht praaltr a g r l t a l t a r a l o t o n t r l t i of tat world and for taat yaari now hat h t l d f I r t t plaoo aa aa oxportar of at l t a a t oat a t a p l t pro duo t , whaat.  Of t a t t o t a l  land arta t f tht nlnd provinaoa I t la tatSamtod that approxlatatoly 400,000,000 aorta art availabla for aao l a a g r l t a l t a r a l prodaotloa, l t a s than aao half of whloh la oooapitd and l a t a than aao ouartor "laprwrad* l a t a t l a t h t orop that i n roaaat yoaro baa aadt Oaaada faaaaa tht pradaotiaa hawiag lntroaatd from 441,000,000 baahtla l a 1088 to 400,000,000 baahola U H I * .  Oaaaalaa oxporta of whaat aad whaat floar  - 139 -  art Ytry heavy, amounting to 260 000,000 busholi and 10,100,000 barrela roapeotively la 1926.  Subetantial amounta of both go to  the northern South American republics, the southern countries being supplied by Argentina. While wheat ia the lain field crop of Canada, it ia by no meant the only cereal produced in large quantities. Oatt, barley, rye, flat and buckwheat are all extensively cultivated and yield txotllent returns. Betides thtse etreal tropt truck faming is carried on for eeaoatie purpostt and almost every kind of vegetable tan be grown in Canada. Forage ertpt are alto important at many grataea and elovert do «tll» yielding heavy ertpt of ha*. Fruits grow ia abundante It] Canada, especially in the previnett tt HtWa Scotia, Ontario and Britiah Columbia.  Canadian applet are  international favorites, while other fruita grown are peaohtt, peart, plumt, prunet, apricota, cherriea, and berriet. Exportt art comparatively small, however* Atoordlng to Mr. ?*H. Oriadale, Deputy Minister #1 Agriculture la Canada, it it in the development of ier live stock and live atook producta that the real future prosperity of Canada may be taid to 1 depend. Export a of mutton, beef and other meata are slowly expanding, but It It la haaa and bacont that the greatest progress has been made. Hit quality el Canadian baton has been improving la recent years, tht quantity intreeeing, and the demand mere than keeping pate with the output. Our txpertt are expanding, reaching tht figure of $28,690,301 in the fiatal year 1966, and tht product it rapidly becoming known ia tht I  Article entitled "Canada Grows ia Importance at aa Agricultural Country" appearing ia Christian Science Uoaitor of Apr. 16, 1916.  - 139 •>  market* of the world, Meats are steadily gaining in popularity as a food with a l l the peoples of the world.  Canada now has 83 packinghouse  plants to take ears of this expanding demand for meats as an article of diet* The poultry Industry has shown rapid expansion in reoent years, but as domestic demand seems to keep, if anything, Just a l i t t l e ahead of production, exportation of poultry and poultry products Is negligible at the present time. Dairying i s the really profitable line of live-stock Industry in Canada, the value of the products amounting to 1122,027,181 in 1924 Of which $91,182,862 wore exported.  Production figures for 1928  have not yet boom published, but export figures for that fiscal year amounted to $55,207,926.  The most important product of the industry  so far as export i f concerned i s cheese*  Cheese exports annually  amount to 150,000,000 pounds with a value in 1926 of $58,718,587. Although a considerable demand for choose exists In Latin America practically none of the Canadian product finds i t s way there*  Butter  has not boon of much importance as a product of export until roeently but the quantity i s now increasing with the rapid development of the industry on the prairies.  Canadian exports of butter last year amounted  to 23,808,900 pounds with a value of $8,773,125.  Almost a l l vent to  Croat Britain, with loss than $5,000 to the whole of South America, notwithstanding the foot that they are heavy Importers of flic commodity* l«ok of interest accounts in largo measure for the paucity of Canadian sales In the market* A third item la which Canadian exports are fairly *  » 140 substantial i s dondensed milk, amounting to 15,000,000 annually* Most Of the Latin American republics are importers of the produot, and Oanadian sales to Cubs, Mexico, Panama and Peru are substantial amounting to $780,000 annually.  Even so, the possibilities of  further expansion art fery great. To svBsaarize briefly, Canada i s undoubtedly from an agricultural standpoint as far advanced as most countries, and has really Just begun nor development In this lino* The value of agricultural production l a s t year surpassed the $1,000,000,000 mark.  Canada's  agricultural products, with few exceptions, are the host on the market and nor possibilities of expansion seem almost unlimited.  Apart from  the extension of cultivated area by the settlement of now lands, intensive cultivation, or increasing the average yield per aero by improved methods, contains infinite possibilities.  Considerable  progress in obtaining increased yields per acre has already boon made in Eastern Canada, but as the average yields per acre of the f i e l d crops in Canada are s t i l l far behind the best examples of European agriculture, much w i l l be accomplished in this direction alone in the future.  There i s every reason for Canadians to anticipate a  very prosperous future for their country as a producer of cereals, live stock, and live stock products. Tat products of the Canadian forest* amounting to slightly ovor ttQO,000,000 in 1925 are exceeded in value only by those of the farms* HM land area of Canada i t 3,000,000 square miles of which one third i t covered with merchantable timber of pulpwood or sawlog s i t e . Unfortunately, however, J9% ot this area hat boon burned ovor at Itasi  - 141 -  suss, so that only 900,000 square nilss yet remain to Canada of her virgin forests. This area gives Canada the second greatest timber reserve in the world, being surpassed only by the United States. Tttal sptoies of trees number 191, according to official computation, 160 sting hardwoods and SI coniferous, the latter, however, f a n over 90% of the stands of sommtraial Value and furnish 98* of the lumber and pulpwood produced. Fir, fins, sprues, tedar, and hemlock are the nsst important of the trees. Ftr the pest ten years British Columbia has taken the leadership in production, contributing In 1984 ever 40* of all the lumber tut in the country,  Ontario wan sestnd villi 25* tf the total,  ftlltvtd by Quebec and Hew Brunswick with 15* and lit respectively. These ftur provintts ttgtthsr supplied ovtr 90* tf the total. One usually thinks of Manitoba, Saskatchewan and Alberta as being prairie provinces but the ftresttd northern parts cf vie provinces more than equal in extent the prairitt of tht south. Snis area Is a potential reserve ftr as yet transportation charges are excessive. The following table, which is compiled from statistics issued decennially since Confederation, shews tht extent to which the forest products industry has develeped.  ian 1881 18ft If01 1913. 2981 1928 1988 3884  #  4* ,4*2,tor 77,4*9,04© 85 ,$89,499 80,841,204 170,600,000 840,088,897 8tt,«48,5t8 488,«M,8» 488,811.848  - 142 The sawn lumber production in Canada In 1924 was 3,000,000,000 board fast. In addition to this about 3,000,000,000  shingles, 1,000,000,00  laths and 6,000,000 railroad tits wars produced, wielding a total value of sawmill products of $142,000,000. to this large figure must be added Hie total for pulp, pulpwood and newsprint which amounted to: ewer $250,000,000 in 1924. Miscellaneous items and miner exports bring the figure up to #439,616,948 for 1924* That the export trade has had a close relationship in respect to the development of forest production naturally fellows. During the Great War the trade attained higher figures than during previous years, but it is since the close el hostilities that the most pronounced expansion has taken place In the aggregate value of the forest products exported. Thf following table gives export figures for fiscal years: 1911 1912 1913 , 1922 1922 1924 1928 1926  6 45,439,057 40,892,674 48,256,066 179,926,867 228,766,208 271,284,778 289,618,024 278,674,968  Over 90% of this total gees to the United States, leaving only small items for other countries.  The Only forest product going to South  America at a l l i s newsprint paper with shipments of 82,000,000 to Argentina, 1400,800 to Cuba, and 1100,000 to Mexico* Although not heavy importers of forest products, the southern republics are a valuable market and one entirely neglected by the Canadian exporter,  Proper  o  - U»-  eanvaeeing of the field should reveal a ready oale for Oanadlan newsprint, lumber, and construction wood. "practically all sountriee that have been truly great 1 are feese that have had a eubstential mining industry." Mining ia Canada le already a flourishing Industry and should grow to much greater proportions than It Is at present. The value of the mineral prcdttoticn for Oanada Mr 1126 Li estimated at $141,000,000, the greatest yet recorded, and develepments have beam taking plage recently that Men almost eertaia to remit ia a my production ia the near future.  substantial increase in  The development of this industry has  only taken place in the last 29 to SO years, Co the mineral industry el Oanada must be regarded as essentially a development of the •^p^c^e^^ce^^c swe  C^-P-C* wees J w  Ia a country of such vact extent and of co varied geological conditions eae expeete to find a great variety of eceaemle minerals and with Oanada the expected happene. The l i s t 1c a long erne and includes such Important aon-mettalio minerals as coal, asbestos, salt, gypsum, natural gas, petroleum, feldspar, mica, quarts and talc| metallic minerals such ae lead, sine, copper, nickel, cobalt and arcenio; and the precious metals gold, silver, and platlnean The value of the coal produced ia Oaaada exceeds that of any ether mineral amounting to $49,261,961 in 1928 and #66,164,000 ia 1926. Neva Scotia, Alberta, and British Columbia are the chief producers. Asbectes 1c tics non-metallic mineral next ia lamertaacc, being valued at 69,000,000 ia 1921 and $9,77*,000 ia 1926. Bcarly the whole of tble semes from Quebec mat although there are strong competitors in the market, 1  Mr. O.C. Batenan in en a r t i c l e i n "The Moratory Tines" January 1927, page 250-  • 144 *  tilt greater part of the world's supply i s Canadian, There Is a great quantity of asbestos-bearing roek In a lent, the resources being sufficient te  supply the demand for decades.  The production of natural gas and petrollum Is slight in Canada at present, aiseuntiag te less than #10,000,000 annually. But Alberta, Saskatchewan, and Hm MagKenaie Basin are vast rsserveirs which will be developed when the Mexican and Oalifornian oil field* play out. Ontario, British Oelumbia, slid the Taken Territory are the leading producers #f metallic minerals and the precious metals, Ontario i s the leading geld producing province, the predustleu f er both 1929 and t m amounting te nearly $10,000,000 tut of a total Canadian product! n of • » ,000,000, Greater production i t e*petted in the next few deeades. Of the precious minerals silver ranks seeead with a tulue of $14,000,000 for both 1*25 and 1925. Ontario i s the leading producer with British Goluwbla second* Canada furnishes 90* of the world*s supply of nickel, the output for Has being plated at $14,500,000 a nUeht detUae from the 1925 value. In Hie preduttion of eepper British Columbia leads, the metal coming mainly from leu-grade deposits worked en a large scale. The Value of the product attained the figure Of $19,270,000 in 1926 oompared with $15,649,082 to S»25. * Moderate production of lead and zint ooeurs in Ontario, Quebee and the Yukon, but the greater part of Canada's output oomes from*British Columbia, particularly from the Sullivan mint, $nc 0 f the really big mines of the world. Canadian  - 14fi -  production of load and xine was $23,000,000 and $10,850,000 respectively In 1126 a slight Increase over the figures for 1925. Mention has been made of but a few of the leading minerals, there being ethers of great importance. Discoveries of mineral deposits hate recently been made which will result in the establishment of mining aad metallurgical industries in new centers, while preparations are also being made far mere estensiwe production in operating mines. The industry has taken en a vigorous growth and i t seems safe to say that developments daring the next five te ten years sheuld equal, if {fULs 4~~  Mr* exweed,,any wladlar period in the history el Canadian mining. A  The fisheries of Oanada are, perhaps, the a^itsaluable upon the glebe. Dee fishing grounds are the meat extensive in the world but mere important than the extent of the fishing grounds is the quality ef their product. Zt if am axiom among aatharities that feed fishes improve in proportion te the parity aad aeldaess of the waters in which they are taken.  Bodged by this standard the Canadian cod, halibut,  harriag, mackerel, whitefish and salmon are the pears of any in the world The value of the fisheries ef Oanada for the last five calendar years and the best pre-war year is shewn by the following table! 1912 1920 1921 1922 1922 1924  $  24,667,872 49,241,389 34,921,935 41,809,216 42,565,548 44,524,295  *  .* 148 -  Among individual flab products tho cod and the salmon long disputed tho primaoy. If tho rooord back to tho beginning 10 taken, tho cod io tho most valuable fishery*  In tho past twonty yoaro,  however* -me salmon has definitely taken tho load, and the heavy pack and high price of lobotore have more than once font ood down to third pl&oo. Halibut, which lor a number ol yoaro occupied fourth place, hao for tho p»«t two wears taken oooend place, foUowod by lobsters in 1929 and ood la 1924. British Colombia, with hor world famous salmon catches, f*%&*** eltt*# to 58* ol 14io total l i e s oatoh of Canada. Nova Scotia i f oooend with a value of $8,777,251 In 1924, or 20*. Now Brunowick i t third wit* W$ followed very closely by Ontario. The valoo of tho oatoh for 1924 was ealme*, $19,788,000; halibut, $5,879,000} ood, $1,443,000} lobsters, $4,189,000} herring, $3,147,000} whitafleh, $1,747,000, and eardlnos $1,245,000. The deaeotie consumption of fish la Canada i f relatively •null and the trade depend* largely upon foreign markets, &Q% of tho annual oapturo being an average export, tho United states taking about 45* of our exports and Great Brltei n another 20*. Exports for tho last few flocal years have been: 1920 1921 1822 1923 1«4  $ 48,288,035 98,881,888 29,821,894 27,792,481 90,888,918  0  - 14T -  With the exception of Brazil, Cuba, Hayti, Chile, ana Mexico -the Latin American countries are small fish eating countries. Even with those mentioned the consumption is low. Possibilities of Canadian Sales in South America are not very bright then, and are confined entirely to dried codfish to Brazil and Cuba, and canned salmon to Chile and Mexieo. Substantial quantities of these fish are annually exported to the above mentioned countries. The trapping industry is of particular interest -to Canada for many reasons* It was the country's first and is its oldest industry. It was the velnwinous rich peltry that the land was fabled to contain that first tared explorers and adventurers to its then unknown and forbidding shores.  Agricultural and other forms of development  followed in the woke of the fur trade which was the original foundation of Canadian activity. Canada has always produced not only the greatest volume out alio the richest quality of peltry, the first by reason of her great northern vasts, and the second because of her brisk climate *  which brings furs to a thickness and glossy perfection not possible la milder elleVUs. Canada and furs have always been synonymous and the Dominion possesses inherent qualities which give her a distinct advantage in efforts to maintain this priority of position in the fur industry, Should i t ever be assailed. the Value of the production of raw* furs in 1SE3-24 was U5,643,817 and in i m - 2 6 , *18,4tt,6€4. Muskrat pelts yield the largest returns, closely followed by beaver, mink, white fox, marten, silver fox and red fox.  • 148 -  Although manufacturing i s today possibly the greatest of Canadian a c t i v i t i e s , until the later nineties the growth was not particularly rapid, amounting to less than $500,000,000 at the beginning of the century.  The influence of the war upon the  manufaotures of Canada was profound and far-reaching, tending to promote the diver sifloation of product and the production at home of many commodities which had previously been imported*  On account  •f the praotieal suspension of -tee importation of manufactured goods of many kinds from Europe, enterprising Canadian manufacturers were given opportunities of entering upon new lines of manufacture with praotieal control of the market* The world shortage of staple eeasaodities, coupled with a strong domestio demand for manufactured goods, gave Canadian industries a pronounced stimulus toward greater production, and in a great number of eases the capacity of manufacturing plants was increased.  Incidentally factory methods became more  specialised and a high degree of administrative and mechanical efficiency was attained, and Canada assumed a new position as one of the leading manufacturing countries of -the world. The gross product of Canadian manufactures in 1915 was 11,881,500,000; #9,290,900,585 in 1919 and #8,772,250,057 in 1920. This last figure reflects the highest peak yet attained by Canadian manufactures, the figures for the following years being 12,576,097,029; 92,482,209,130} $2,781,165,514; with the figures for 1925 and 1926 estimated at $3,000,000,000.* The figure for 1920 i s very abnormal as extremely high prices prevailed at that time.  The physical volume  of output from Canadian manufacturing plants in 1926 was higher than „ *  1925,  §2,948,545,315.00  » %&& -  that for any prevleus twelve months, reflecting the stable and progressive nature ol the Canadian manufacturing ladactry. By far the greater part of Canada*" manufaaturei, of course, i s connected with the primary development of her natural rastaraed* On the bails of these preduete, with seme minor aoaassion* from abroad such as eat ten, rubber, hidoa, sugar and wool, m» manufacturing Industry of the country depends, and produces approximately 4$£ of the total productive wealth of the country. After MastlSf the Value of raw materials fte net produat of *  Canadian manuf aatures la 1823 was $1,311,026,000 compared with agricultural prodaction la the same year of H ,107,§71,000. Thus Canada's role as a manufacturer la more Important than i t s part as a farmer* and there appears to be no reasonable limit for expansion la Hiker capacity* The number ofraanafsAtarlng establlaJuoents la 1823 was 22,643* This la the latest year for which detailed statistics are available bat the position today i t known to be considerably better. These industries have boon bailt up largely by Canadian capital, only 34Jt cf the steaks and bonds boms hold by Americans and 9% by British. Much of the investment of American capital In Canadian industry i s In the form of branch factories, of which there arc soma 750 in the Demlaion.  Those factories have greatly built up Canadian industry  and plactd Canada fifth among -ttie Industrial nations of the world today. The nine provinces a l l contribute to the industrial production hat Ontario and Quebec together account for more than half of the total. British Columbia stands third, the net income from manufacturing la *  1925,  $1,360,879,907.00  - 150 -  this prowlae* beiaf l a exeess of $60,000,000, ehlefly from lagging aad flifting.  In Prineo Edward Ialand, Nora Soetla, and New Bruaswlok  aanufaetures aooount for 23?, 29/C, aad 36% respectively of not preduetion.  Comparatively l i t t l e manufaeturiag la dona In the  prairie provinces oat even s s , the groea value of raanufaoturea oa the pralriea amounted to $188,000,000 la 1923, aad the net value to $79,000,000, Statletioa for the twenty leading Industriea for the roar 1888 arranged la order of fee groat Value of produetloa are: fcaaa JaaMLAl BTiflMtttB-  fitfluk* 1 2 S  Palp * papar Plow a i l l i a g See; Mills  4 5  Meat Peeking Batter and oheeoe  6 ,7 • 9 10 U 12 13 14 15 lg 17 10 19 20  AllfllftilOP Hydro-eloetrie ooo. Ootten yera * dusk Sugar refinerieo Oaatlngo d forglaga Railway and rolling otook Rubber floods Sleotrioal apparatus Priatlag and publiahlag Broad aad other bakery products Biaeuits aad ooafeetioaery Hosiery and knit good* Leather, boots aad eases Petrolews ref laing Steal aad rolled products  $  164,414,675 154,090,991 119,894,577 139,210,909 105,405,412 05,614,176 91.U1.296 79,999,988 77,004,026 70,283,006 68,212,887 86,816,947 81,960,400 48,888,661 48,889,478 48,894,176 47,821,876 48.896.0U 48,671,606 44,718,176  Today Oaaada oeoupies a nueh better position l a laternatlonal trade th*w the did la 1913. Then we stood 10th aasaget the exportiag nations of the werldt while today we held 6th plaeo.  The steady pregreos i  - 151 -  •* Canada shows no signs el abatement aa the following tablt will •how:  XfiJaftl  1913 UUft 1919 1980  itai mi <SsoVSSJnsT  Ml 1986  970,518,199 671,207,384 588,801,134 •If,710,705 1,064,528,133 1,340,158,882 747,804,382 808*878,344 883,368,887 788,833,837 937,430,732 830,378,338  $  388,788,898 377,088,356 779,300,070 1,388,788,388 1,888,888,708 1,310,438,119 783,987,009 948,8*7,887 1,668,783,837 1,081,881,643 1,838,636,137 1,146,862,399  #  688,083,193 1,048,275,589 1,887,601,204 2,188^76,998 8,851,188,833 3,460,587,001 1,881,791,841 1,747,875,081 1,983,130,184 1,878,834,180 8,355,939,863 3,088,837,787  law* Th* imaorteno* of Oaaada** position a* a fefttar la tha WWld*f industrial trade may be gathered from the fuet that during the f i s c a l year 1936 Oaaada exported $1,081,361,848 worth of produce, Of whioh 405t were fully or chiefly raanufaetured goods and another 15* partially manufaoturod goods. To lay that Oaaada i s e t u i la the agricultural stage of development would seem to be erroneous.  Canada  ne« exports her produots and manufactures to owery market la the world aad there i t a steady expansion l a both the variety and volume of goods •eld.  Oaaada i s the largest produoer aad exporter of paper and newspriat  in tho world, stands seeond la tha manufacture and export of automobiles, seeend l a flour, fourth in rubber goods, and takes a leading plaes amongst the producera of lumber products, meat produots, dairy produots, * slsvwa months only. ending Marsh 31st.  Tabic ref ereaeo to fiscal years  4  is* -  is  irotf and otool products, olootrioal goods, loathor goodo, and toxtiloa.  Through taking an aotito part in tht various important  oihibitionj abroad, and with the aid of aggrosiivo polioioa oa tho part of Canadian maaufaotororo aad tho aaslitaneo of Canadian flotii —out trado Qoamiaslonera, romarkablo itridos aro hoiag mad* in tho dovolopmont of an ozport trado l a Canadian maaufaoturos.  I  I  - * •  ••  CHAPTER IX  SPECIFIC TRADE OF CANADA WITH THE IATIN AMERICAN REPUBLICS  gftftt  ** dialing with this topic 1 found the data obtainable f»rj M a c r o , wbllo eomparloent oould not always fen mado  *po* tat same basis.  For example all figures pertaining to Canada  •ft take* from tat "Canadian Yearbook" and art tor tho fiscal yoaro fUlltii " i n h i\ • Figurot of the imperts and exports of -tho Latin American oountrloo art for calendar yoaro. and are takon from tho " U » Commerce Toarbook," ( I W 6 figures boing inserted in erery instance from a ohart compiled by Redmond and Company, 81-33 Pint Street, New York.)  The Latin American import and export values are  converted into United States dollars at the average value of the monetary wait for the year in question. Comparisons then are only approximate and not upon an absolutely identical basis. The Canadian Toarbook only shows our trade analysis with the more important of the Latin American republics, and then only for -the past three years.  I  154  H*^«;|'  ': %  A. ARGENTINA. Argentina i s the second largest country of Latin America, covering aa area el I,153,119 square Biles and having a population very else* to the ten million mark.  This country i s the principal South  American customer of Canada and practically every Canadian good  hiil • ,'W I 'V <  ym •:: •• h ' i  ii v l'j '  that finds a market in that continent appears in our exports to Argentina. Argentina i s primarily agricultural, i t s principal resources being cereals and animal products.  ',  • *'  MI l.'iVi.  '^"lu  A  Since, however, those products  are very similar to our agricultural produce, no groat importation from  W  Argentina i s practicable at present* Trade, therefore, takes on a  II  triangular aspect the Argentinian selling his eoreals and moots in Bbrope, buying acre and mere of Canadian and American goods with the proceeds.  Being almost exclusively an agrarian nation the Imports into  , , If  •!.',-  Argentina comprise mainly manufactured and semi-manufactured goods. Argentina i s rapidly becoming industrialised, however, so each year shows a growing demand for Industrial equipment and raw materials. Many o f these requirements the Canadianraanufaetu*er i s in a position to supply*  The market i s one of the most keenly competitive in the  world, with prices out to the lowest cent.  A high quality i s demanded,  in nearly a l l imported products, second class goods fJading only meagre sales.  This fact should prove a benefit to the Canadian manufacturer  and not & deterrent.  Our quality goods are the equal of any In the  world and should find an easy sale in the Argentine,  Statistics of  Argentinian imports attest to the veracity of this statement as the  .-I  .8,.  «l-1 -  "  ,  •  • ' •  M,  I II  138 -  figures for Canada are steadily mounting in total eaoh year.  ArctRttaliB aparii (Fiscal Tears, ending March 31)  (Calendar Tears) 1913 $ 478,859,000 2981 847,189,000 1933 864,348,000 3833 883,349,000 ISM 847,471,000 1939 801,388,000 1886 801,439,000 1837 *  ( f i r s t 9 months)  1818 I 1M 1988 1888 1984 1881 1986 1937  14,166,888 8,583,831 3,385,100 , 3,078,934 4,173,563 6,863,736 3,411,748 ( f i r s t 9 months) 4,637,414  800,186,000 418,834,000 188,087,000 606,079,000 790,306,000 798,188,000 798,887,000 -  $  8,381,888 8,171,980 8,333,433 4,446,041 7,1 *0,333,373 13,639,706 10,634,621  The percentages that the t r a i l of oertaln aonntries boar to the total Ar6entiaian trade are shown la the following tabic.  This  table i s for "averages" and not for any fpooifle year. Qjggfcrjji  Great Britain United States Germany Italy 'ranee Canada  | it S8889gt8  % * * Bgporto  38 24 IS 8 7 1*5  86 10 13 6 10 1.1 •  • 156 m  From the above figures one oaa readily see that the foreign trait of Argentina is expanding steadily each year, the increase being Spread fairly evenly between exports and imports.  The l a t e s t figures  available, those for the calendar year 1928, are the highest on record for either experts or imports.  Not only i s Argentinian trade increasing  but Canadian participation in that trade i s also increasing.  Our  pereentual participation i s s t i l l very lev, but at that i t i s better than the pre-war figure ef 1918* Measured ia terms ef dollars our exports for the fiscal year 3887 w i l l be approximately seven times the value of cur experts in 1818, or $8,281,858 compared with an estimated f l i e r s Sf over $14,000,000.  These figures should afford some slight  Satisfaction to the Canadian manufacturer anxious to see Canada's trade greater l a the markets of the world. Canada's trade rivals i n the Argentine are numerous Indeed but the barrier of competition should not prove insurmountable.  The  greatest competition that the Canadian manufacturer must face i s that Of Croat Britain and the United States.  Both countries expert mainly  high quality manufactured goods that come in direct competition with similar Canadian manufactures.  Seme of -this trade might possibly be  secured by Canadian firms If they adopted efficient advertising methods and energetically attempted to cultivate the market.  German competition  in the Argentine has Increased very rapidly since the war and i s now extremely active.  German chemicals, drugs, toys, scientific apparatus,  indue t r i a l machinery, and tools comprise tho major portion of that country*s exports to Argentina.  Only certain of these products are  ,  v.1.-''.  dirootly competitive with Canadian goods so German oompttitlon with our merchandise is not as large as the figures would tend to indioato. The competition of Franco, Italy, Spain, and the other Latin American Republics has little effect upon Canadian trade inasmuch as their exports to Argentina consist mostly of "lines" which wo ourselves must import. Amongst thorn would bo included olive oil, wines, oof fee and tropical fruits, petrolotra yerba mate, etc.  In connection with the  growth of Canadian trade with Argentina the following extract is taken from "Argentine Markets for United States floods" Trade Information Bulletin & 8 4 *  ".......,. Trade between Canada and Argentina is larger  than is generally supposed. Nearly two yours ago the Canadian trade eemmissioaor to Argentina asserted that a very considerable percentage of certain American makes of automobiles then in Buenos Aires wore the product of Canadian factories, as was also much rubber belting, canvas and rubber shoes, and tiro casings. Other imports from Canada embraced hinder twine, spruce and pinewood, newsprint, paper board, galvanised pipes and tubes, wire of Various kinds, malt, many types of agricultural machinery, sowing machines, cement, drugs, dyes and chemicals, and calcium carbide, all important United States export linos. Re predicted at that time that it was not improbable that within a year or two this U t t would include other typos of machinery, textiles, electric lighting setn, codfish, salmon, coed potatoes, apples, and domestic applieanocc, and this has already come to pass, increases being especially notable In exports of cotton textiles and machinery other than agricultural."  •  158  Canadian export* to Argentina, in the light of this extract, are net limited to any email or reetrioted class of goods and Canadian manufaeturers A o are able to compete ean increase the Canadian participation in these various lints suggested.  The ehief Oanadian commodity experts to Argentina are:-  $  Kit* m  ^^K^f^^^m  ^^m 8 ™ *  Blades? Telae •NiMMf. Iron pipe 8 tubing Agris. Implements t i t i . i t MctJrtitrf flftumhltM Automobile parte Paper A llf gs. H1 seen • neous  808,303 PV«y990  118,380 878,189 188,248 2,083.780 ^F e ^F | * w w  1,413,546 T "181.383 •  673,811  84,832 1,234,0*8  222ft  mi*  mtm  52,350 1,820,263  2,056,497  lSjp'"^aii0V • ^ 4SnST  •88,175 4 140,561 |.A*^yt* 1,886,888  2,671,126 e)ua,#ew  241,000 57,004 3,801,447 748,388 1,738,008 833,480 1,185,104 883,617  12,633,704  10,634,621  401,388 118,224 2,378,711 8,057,10* 3,136,478 I  apwBs ji^PwwS'  811,888 870,857  * M « M M H M H H M B M M M M B « M «  $7,305,866 10,328,878  * nine months. From the above statistios i t i s easily aoen that Canada i s steadily strengthening her position in Argentina* The figuree for the f lr*t aloe monthe of the fisoal year 1827 assure us that when complete figures ere available the expert figure will tep the previous "peak" of $12,838,708 made la 1828* This total i s certainly a tremendous advance evor the proffer figure of $2,251,888 made in 1813*  «  * -18*  The nature of Canadian exports to Argentina should be a matter of great Interest to the Canadian manufacturer.  Attention  will be immediately fooussed upon the fast that fully 80% of all M r expert! te that market comprise fully manufactured or semimanufactured goods*  Automobiles and automobile parts valued at  •5,196,476 are the largest tingle item for the year 1936. In that year over 8,000 Canadian automobiles were skipped te Argentina* Agricultural implements (harvesters, binders, cultivators, drills, harrows, ploughs, Boeders, and threshers), sewing maohines, and rubber manufacture* each have an export figure over the two million dollar met*.  Paper and paper products complete the items #1 a value of  one Million dollars er mere*  These are all products that the Argentine  needs urgently yet does not manufacture domestically.  Canadian  sales to this market should increase rapidly in both physical volume and in value. Our manufacturers already have a substantial foothold there and this leverage should not be difficult te maintain or increase He have in part what the economist would term a "momentum of an early start*"  The prospects for Canadian trade development are very good  at the present time so it behooves all energetic and enterprising Canadian firms with a desire to share in our export trade to "take occasion by the hand" and increase our figure year by year. We should not be content with a figure of i3A,OOQ,000 when, through proper advertising and sales methods, that total might well be doubled er even tripled. i  . J60-  B  Bolivia.  Bolivia is one of the two countries of South America which peeeesaes no seacoaat, henee nearly all trade is done through the ports of Arioa and Antofagasta la Call*, and Mellendo la Peru.  Thia faet  make* it difficult to atate with any degree of accuracy juat haw rauah of our seeds go to Bolivia. One thing we do know, however, and that ia that the aaoant ia email. Although there hae heen an encouraging inereaso of im$orte from Canada ia reoent years, this inereaae it mainly aeooanted for by one article - automobiles - and the many eommoditiea wbieJl Senada manaJaeturea and which Bolivia uaes have in the main ocme from the United Sta-tes, Great Britain and Germany. The area of Bolivia ia largely uneurveyed, eatimatea Varying from 890,660 equare milea to 700,000 square milea. The population ia net more than 3,000,000 and probably Tot of this number eonaista of Indiana whoae standards of living are lew end whose purchasing power ia small. The market is thus not an extremely Important One from the atandpoint of Canadian trade. Every variety of climate and product tan bo found in Bolivia, a eeuntry with so many different elevations. With anoh a range of climate it la not eurpriaing that the crops are varied*  Thoae include wheat,  oorn, beana, bananas, potatoes, barioy, rioo, olive, almonda, eoeoa and oofloO*  The breeding of aheoo and cattle la carried on fairly extenaive3y  Compared with other South American republics, however, agriculture ia in a Vr?  backward condition.  -  . 161  Mining i s the overwhelming industry in the country, almost a l l ef i t s exports being minerals. Bolivia has a world monopoly in the production of that valuable mineral, bismuth, and i s the seoond tin-producing country in the world, following very closely after the Malay States, The tin mining industry i s the most important one in Bolivia, the annual production being between 50,000 and 60,000 tent* Bolivia is one of the world*s greatest producers of silver and oepper, the fact that with the former, experts have risen from 12,6*4 tons in 1913 ta 22,068 tens in 1924, and with the latter from M 1 3 tens l a MM to $1,915 tent in 1924, I s significant ef the probable future expansion in these industries* Other important minerals are zinc, lead, and antimony. & large number of valuable woods, such as mahogany, rosewood, Spanish cedar, ebony, and lignum vitas, suitable for cabinet making, grew in the country's forests, but dc not receive the attention commercially, that they deserve* Rubber from the Bolivian Amatonla has in years gone by been one of Bolivia's most important articles of oaaaeree, but since the decline of the Amazonian rubber industry there has been a very noticeable dropping off in trade* Bolivia i s not a manufacturing *> untry nor Is i t probable that i t ever will be. She essential primary materials coal and iron are both lacking, and since the great altitude makes the cost of importing -these prohibitive the prospects for development are not bright* There are a few factories making such articles as cigarettes, chocolates, soap, matches, shoes, beer, and nail*, but for the great majority of i t s requirements the republic has to depend upon imports  -162 -  from ethor countries, and there Is no roason why Canada should not here at loast a share of these much larger than she if at present enjoying.  (Calendar Tears)  uu ]JAA  %$n 1988 1989  nn 1928 Jfjgf 1987  1918 1820 1821 1928 1988 1984 X92S 1926 1927  $  21,320,000 20,403,000 16,880,000 18,794*090 20,031,000  (Fiscal Tears e  WRW» 'jp™^w^ 8 ^ ^ s n ^  — S)BW:|p^^Mr •  8^^^^^  ( f i r s t 9 months)  88,488,000 48,718,000 18,584,000 24,887,000 34,287,000 34,184,000  «•  77,087 126,924 8,278 12,328 62,239 72,354 178*888 53,676  9,028  •  •fe  40,887,000  1,081  Pnlilm «>oirf: iQnasjnt w , Bolivian trade has remained almost Stationery as between 1918 and 1926.  Canadian trade participation  newer has been large and today is less than $78,000. annually. Use trade Is shared almost entirely by the United states, Great Britain, Chile and Germany In the order named. Bao principal items of import are flour, sugar, eonstraetion lumber and cotton cloth. These four items annually ewerage over 96,000,000, yet Canadian importations are almost unknown. Other Items video eould be shared In by Canadian exporters are somen*,  - US-*'  •M%  glass bottles, hardware and tools, mining machinery, wire, sheet iron, and explosives.  Our export figure to Bolivia  i s made up ataost entirely of two items, automobiles and parts end explosives. Owing perhaps to the rivalry tor the markets of Bolivia's better known and wealthier neighbors 'tee republic has  Hi  r  M|  usually been overlooked by exporters seeking fresh outlets tw their merchandise at ft market for Canadian goods, then, t h i s , the third largest of the South American countries, i s practically untouched. However, the Market dees offer possibilities and should net be i  entlrwly overlooked by Hie enterprising Canadian manufaftturers. Other markets will be t©and easier of access and more lucrative but once these have been canvass* one might easily turn to the Bolivian for further soles opportunities.  Mm  ..It 111 III 1  • 164 -  The Republic of the United States of Braail i s the largest of a l l I*tln American countries, comprising 3,276,358 square miles, sad containing a population ef approximately 38,900,000.  Next  to Argentina, Brasil i s our most important market in South America* taking olese to 18,000,000 worth of our raerehandise in the fiscal year 1926 and already 16,142,454 for the f i r s t tbnnmonths of the IfIf f i s c a l year. Like most of the Latin American republics Brasil I s mainly a g r i c u l t u r a l , producing a great variety ef crops.  Coffee i s by far  the meet important, t h i s commodity alone accounting for mere than 60% of the t o t a l Braiilian experts.  Other important crops are  eacae, sugar, t e t t o n , rubber, r i c e and tobacco.  Oattle r a i s i n g i s  a rapidly graving industry receiving the enthusiastic support and financial encouragement of the Government* Hothwithstanding t h i s diversity i n i t s agricultural crops, ceffee i s -the sold Brasilian expert t o Canada, comprising 99% of a l l Brasilian exports to us in 1823, 1924, 1926, and 1966* Industrially Brasil ranks f i r s t among the South American republics.  Though of comparatively l i t t l e Importance as yet,  manufactures have made great strides in recent years.  With the  developments now i n progress and under consideration Brasil should become practically self-sufficient in many lines now imported*  The  Government encourages industrial a c t i v i t i e s ef every nature by the retention of the highest t a r i f f barrier in the world, ac well as by *  -165 •  leans, concessions, and apeoial favors. The result is, Brazil no* produces domestically almost all the textiles, hats, shoes, eltthing, tinware, enameled ware, furniture, and many ether commodities, that it needs. The inevitable result has been that exporters of these commodities have feund their sales in Brasil steadily falling off, with little hope of recovery.  On the  ether hand there has been increased sales of all kinds ef machinery ill Brasil and of toe raw materials going into the manufacture ef Brasilian products. The Canadian manufacturer and exporter should atte these facts am attempt to secure a jroportion ef the type of foods that Brasil will in the future import. To properly understand business conditions in Brasil the Canadian manufacturer will have te make an exhaustive survey of the different marketing tensers, Rio de Janeiro, Sao Paulo, Parana. Para, Pernambuso, Battle, and Porte Alegre. These are all independent marketing and distributing centers for their respective districts. Business conditions in general depend on the success or failure experienced by the producers of agricultural orope, meat, and dairy products. Owing te the diversity of interests of the different sections ef the country, each of these districts, as previously Indicated, must be considered separately. He generalisations at all are possible for voile prosperity may touch one section, another may experience something entireJy different, since itf well-being hat a different foundation. I tsanet here eater lute a consideration  -  166-  of a l l these factors affeating business conditions In the different d i s t r i c t s .  That will be a natter for intimate investigation  on the part of every interested Canadian concern.  I t i s sufficient  here to merely point out that t h i s w i l l have to be done as one cannot consider the whole of Bra ail at a unit In the marketing of one's products. The following table will serve to show the nature of Bratilian trade and the extent of Canadian participation in i t . The Brasilian figures are taken from the 1928 Geameroe Yearbook, values being given in United States gout, conversion from raltroie to dollars having boon made for the average official rates for the respective years.  1912 1918 1916 If IT 1918 1919 1920 1921 1922 1925 1924 2989 1926 188T  6  Canadian figures are from the Canadian Yearbook.  226,818,060 142,849,102 190,887,440 209,859,287 280,672,562 549,648,409  $  974,462 541,998 1,069,TOO 1,026,101 994,946 4,088,894  2,705,488 499,299,226 2,855,191 221,627,686 2,002,449 215,992,088 1,929,067 251,896,689 2,624,510 208,186,172 4,822,591 418,482,000 411,972,000 (estimated)(first 9 mths) 6,679,101  •  167 The sawn lumber production In Canada In 1824 was 2,000,000,000 board foot.  In addition to this about 8,000,000,000 shingles,  X,000,000,000 laths and 5,000,000 railroad tlss vsrs produced, yielding a total Value of sawmill products el $142,000,000. Ts this large figure mist be added the total for palp, pulpwoed and newsprint whish amounted to ewer 1*180,000,000 in 1124. Uissellaneous items and minor experts bring the figure up te 1433,816,948 for 1124. That the expert trade has had a close relationship in respeet te the development of forest production naturally follows. SoYtft* the Qreat War the trade attained higher figures than during previous years, but i t i s since the close of hostilities that the meet pronounced expansion hag taken plate In the aggregate value of the forest products exported. The f ellewing table gives export figures for fissjal years.  UU  $  48,43t,067  Mis leas  42,188,010 XTt,828,88T  SM W2B  2T3,3M,7T8 282*810,024  S28  IW,6»,t8w  Over 90% of this total goes to the united States, leaving only tssOl i f * fw other countries. * • only forest product gtlig U ft*** Ammriem at aU 1. mow*** pa*>r w i * chipawnt. of *8.0OO.OOO te Arctium. #480.000 te Oube, and 8100,008 to MexUe. Utheugh « t ^  t^rtor*  of fore.t P " * » " . * * ooutherm republic. a « a valuable  m**% end on. emtlrly " g l - f * * * • « « - « - W r t » .  Propor •? ;  - 168 *•  13 flEfUftllaH Exports 1013 1929 1921 1922 1923 1924 1926 1926 1927  *  318.518,000 368,308,322 224,235,000 301,972,000 337,287,000 422,684,000 489,535,000 496,686,000 at  Eiporta to Panada  $  estimated) ( (first 9 mtha)  1,295,521 1,973,768 2,151,066 1,459,245 1,391,136 1,439,497 1,616,213 1,848,756 1,479,374  From tho above figure* it Is easily seen that tho total foreign trado of Brazil is rapidly increaaing. Tho post-war finanoial doproasion has been weathored and the figures for 1925, tho latest available, place tho foreign trad* of the country at the highest level yet attained. Brazil maintains a steady exeeas ol exports wtw  imports  at a ratio that remains fairly constant. Canadian participation in tho Import trade of Brazil Is increasing rapidly*  the figure of  $4,832,391 for 1926 was the highest on record but already this "peak" has boon passed by the present fiscal year*  Should exporta to Brazil  remain uninterrupted the figure for 1927 will be over #7,000,006. At that our participation in the total Imports of Brazil amounts to loss than Z%, an absurdly lOv proportion. The United States and Great Britain vie for premier honors, each controlling about 23£ of total Imports.  Germany and Argentina control 142 and 13£ respectively.  Canadian  mattufaoturera are just beginning to realise the possibilities existing la this markett  When they become fully cognizant of the potentialities  » 169 -  of Brasil as a field of business endeavor our exports to that country should swell Immensely in volume. At present Brasil ranks 19th amongst the twenty-five leading customers of Canada (Argentina is 12th) while Canada ranks 11th in supplying the import requirements of Brasil, being outranked by Portugal, Mexico, Holland, Uruguay and Switserland, countries that we should have little difficulty la outdistancing* She chief Canadian commodity exports to Brasil, as outlined la lit Canadian Yearbook sad Monthly Trade Reports, are as fellows}*  WA 8 163,678 flour Hatter Ml gs. Fit* Sewing Machinei  fisiissH'iinsi  " Parts Aluminum Mfgs* Miscellaneous  Total  287,182 288,887 288*000 488,092 98,324 219,842 832,464 847,824  AtfiL #  .  '  j&2& $  210, esa 888, 811 200, ,888 824,,H8 878, ,884 489, 084 68 288 288, 187  •  422,181 822,MB 488,888 888,088  (1,864,233 | 49,729 88,248  8 2,624,310 8 3,417,249 * 4,832,381  1937 ( t months ) $ 671,908 2,013,388 714,808 380,900 898,888 873,342 5»;»; 188,188 69,224 488,108 8 9,673,101  The above serves to show fairly well the nature of Canadian experts to Brasil.  Compared with Argentinian imports from Canada some  fairly startling revelations will bo noticed. We export te Brasil almost the Same articles as go to Argentina with the exception of wheat, wheat flturi and fish, large items in our exports te Brasil but of negligible Importance whore Argentina i t concerned, la place of these items we export to Argentina considerable amounts of lumber, iron and ,  • 170 -  steel tubings, wire, agricultural implements, newaprlng and paper Manufactures, articles that find practically no eale la BraSil*  It  it facts of thla nature that are of prime Importance far the Oanadian ssuiuf aeturer to know in order to properly carry en buaineas with the Latin American countries. Although eur exports to this market are iaereesing substantially each year it can hardly be said as yet that we art in a satisfactory position*  there should be an erer-lncreasing  isiiend for ear pretests in Brest!. Hie purchasing power per capita at the present tine is very lew due principally to the high degree of illiteracy*  lids is a condition that is bound ti iapreye as the country  srtg esses, and as the individual doTOlops, Hit buying power and wants will increase. Therein *4es the opportunity for the Sanadian manufacturer any sarawfaeturer particularly interested la Brasil will find trade Information Bulletin Bt.*W» "Selling ia Braiil" published by the waited States Bureau if Foreign and Domestic Cesawret partiealarly helpful la waderstandfag sonditiens ia the country and the proper preeedare ia condaeting sales in Utat raarket.  •  - 171 *  Cen-bral America comprises l U n t U republics of Nicaragua, Honduras, Guatemala, Panama, Costa Rioa and Salvador.  The oombinod  areas of those oounlries total barely 200,000 square miles, with a population of a little over 6,000,000.  Tho population li a mlxturo  •I Spanish and native, having fov needs and low purchasing powor. 9 B § wr—porlty of tho entire group it dopondont upon tho prioo received *J§» a Urn agrioultural products. Intornal dlsrodcrs and strifos art f in—n in Hondarao, Nicaragua and Guatemala, consequently any trado oarriod. on with those countries omst ho done most cautiously. Central America, in common with tho other countries making up tho Caribbean croup, is distinctly an agricultural region dominated by * «a*ll number of products. Tho success or failure of those crops influence! to a marked degree the prosperity of the countries, and consequently the volume of trado. Coffee is the prinoipal crop of ail exeept Honduras. Bananas are the leading export of the last mentioned oountry and hulk largo in the exports of the rest. Those two products, together with sugar, account for 90? of the total experts from tho Central American Republics. Cereals and vegetables are raised for local consumption, hut supplementary food importations are necessary. Tho livestock industry is rapidly decreasing in importance. Although tho Central American Ropubllos possess largo potential mineral resources mining is not yet greatly developed.  - 172 -  Manufacturing i f likewise backward, being confined to a few t e x t i l e and sugar mlllg, d i s t i l l e r i e s , and the few small industries for articles of local consumption.  Manufactured goods predominate In the imports  of these countries, many of the articles imported being those that Canada i s in a position to supply.  ilia ini  I  47,100,000 65,000,000 58,700,000 67,200,000 74,150,000  lWtt  tits lift*  lit  6 Xfil  laaa ma im  50,500,000 * •  68,240,000 89,300,000  IfSB If86 1927  $  108,480 478,986 fPwWr aWnAV  890,738 611,063 894,098 1,190,968 985,000 ( f i r s t 9 months)  188,497 874,801 819, US 898,818 581,580 , 1,111,691 1,053,439 1,848,000 ( f i r s t 9 months)  The total trade of these s i x Central American Republics aag roughly increased by 50* in the past twelve years, with a marked tendency for imports and exports to balance eaeh other*  Caftadlan trade  with those republics has, i a the same length of time, increased by over 750*.  Notwithstanding Ihls largo inorease, oar partieipation la s t i l l  exceedingly small, amounting in a l l to l i t t l e more than 1* of fee total trade of those eountries.  Substantial increases i n ear exports are noted  • 173 -  twory year slnoe tht abnonaal figures for M i .  PreUded the edvanoe  if maintained during tht neat deoade or ao Canadian trad* with these republiee may thon bo in position satisfactory to tht •ntorprlolm Canadian exporter. Tho Unitod Utates consistently oontrols T0% of all exports going to OontraX Anerlea, Croat Britain following with 10* and Qornany with some Z%» sugar, ooffoo and bananas eeseunt for total Canadian Imports fs*** Ooniral Aaerlea whllo aloohelit beverages who «p tho majority of OUT OSjpoiU to that market, ©thtr Oontral amorioan Importi that flans df an manufacturers nay bo lntorootod in aro wheat flour, lumber, swttens and othor textilee, iron and stool prostata, moats, payor, loathor aasuiaoturss, vegetables, lard, sondonsod milk and automobiles. Za son* *outh Amsrieen oeuntries Canadian manufaoturoro of thoso ltoms aro soooring salts in dlroot competition with similar goods Iron othor eeuntriee.  Zf thoy oan insure salos in thoss markets thort appoaro  to bo l l t t l t or no roaaon why thoy shsuld not sxtsnd their salos into tho Oontral Amorloan field.  .174. .  B.  Qhile  Chile is third in oonmeroial importance amongst South American Republics.  It provides a field for manufacturers interested  1* txport trade which appears to have been overlooked, or at least aot It kits received is Canada the attention eocsneneurats vita its importance Sail* lies along the vest eoast of South America between the Andes and th* Paeifle Ocean*  It U  a narrow Strip of land 2,700 stiles long  sad el an average depth of 100 miles. The total area of the country is Mi,796 square miles, supporting a population of a little over 4,000,000. Unlike Argentina and Brazil, Chile cannot be said to be predominantly agricultural.  Ia faft until quite recently Chile has been  regarded as almost exclusively a mining country, comparatively little attention having been paid to the development of the agricultural and raaaufasturins industries*  Mining is the chief industry in the country,  Chile supplying nearly all the world's consumption of natural nitrate of soda and Iodine, and ranking second amongst the copper-producing countries of the world*  In fast, Chile is at present almost economically  dependent upon the price recaived abroad for its nitrates. This salt is the country's chief source of wealth and fluctuations in the amounts exported are immediate3y reflected in the amounts of ether oomnodities Imported,  The purchasing power of the Argentinian is determined by the  market prion of wheat and meat productsj of the Brazilian by the market prion of coffee; so in turn, of the Chilean by the market prise of soda  nitrate.  - 175 -  )  Beiidei its nitrate fields Chile possesses immense ooal fields la the south (the only country in South America having deposits of this mineral) and iron ore deposits in the north. Many other minerals are sained in the country Chile possessing almost every known mineral in the world.  The annual mineral production  Of the country IS now plated at over $250,000,000. Chile is net preeminently an agricultural or stock raising country because cf the dryness of the climate and the large extent if mountainous territory*  Notwithstanding the comparatively small  acreage under cultivation, however, it produces practically all its own requirements in foodstuffs and in addition is able to export fairly  substantial quantities of produce of different kinds. Possessing plentiful supplies of ooal and iron, all kinds  L  of minerals and an abundance of latent waterpower, there would seem to be no valid reason why Chile should not eventually become a manufacturing country of some importance.  This ambition is gradually  being ooncumated and Chile is emerging as the second Industrial nation of the continent, dose upon the heels of Brazil.  But  because Chile aspires tc be a manufacturing country does not by any means imply that the market should cease to be of interest tc Canadian manufacturers.  Speaking in general terms, it ought to be  true that the more highly developed a community is the better market it provides for the raw, semi-raw and manufactured productc of other countries. If the United States and Oreat Britain tan be taken as any criteria this statement is certainly feme. The development of  ^/  * 176 •»  domestic manufactures will curtail Canadian tales ia certain lines at the same time increasing them in other lines*  It may therefore be  aseepted that the development of the loeal manufacturing Industry ia Chile will net impair the value of the market as an outlet for flaaadian products. Amongst those eommodities that eannot now bo profitably exported to Chile may be mentioned eaaaed goods, confectionary, liquors, certain oheap textiles, hats, shirts, collars, waterproofs, paper products, boots and shoes, traveling  products, smaller metallic Implements, glassware, ooment, matches, brushes, brooms, and cordage. Canadian manufacturers of these articles should not sxpest to find Chile a profitable market for •alts*  Apart from these above mentioned goods sales in most other  limes should prove both profitable and increasing in physical volume. Trade statistics for Chile reveal the following figures:  Calendar Tears) 1918 1929 1*81 1928 1988 1984 1928 1826 X987  $  flBwrti tim gfrttfrfo (fiscal years)  120,870,000 $ 18$,107 128,1*7,000 890,860 110,874,000 804,809 78,789,000 890,878 118,987,000 821,718 188,880,000 821,808 776,887 1*9,844,000 '• 1,489,170 % (***•»* » a**18) 1 #132,496  •  - 177 s fffaUtaa B W t i  1918 1920 1921 1922 1922 1924 1922 1926 192T  2  142,797,000 214,053,000 126,217,000 110,166,000 184,318,000 199,262,000  BxnQrf to h m a  8  97,879  20,471 230,068 97,969  •  293,894  227,377,000 •  626,021 240  ( f i r s t 9 mental)  670,146 467,688  Sat figures reveal the fast that the total Chilean foreign trade ig growing but almost entirely en the side of exports. Imports for 1924 were almost identical in sua with these of 1913, while exports had increased by 50*. Of her total imports the United States supplies annually about 27*, Or eat Britain 25*, Germany 15*, Franoe and Belgium eaoh about 6*, and Oanada about 1*.  Our participation  In the import trade of Chile is miserably lew, due largely to the negleot of this market by Canadian manufacturers• They have considered ether fields to be easier of access and closer te Canada so the Chilean field has been overlooked. We are slowly improving our position there, the figure of 81,409,170 for 1926 being over 1,000* more than our pre-war figure of 1913. The latter total was so very lew, however, that even peroentually the results are net very gratifying.  The matter  that should please the Canadian manufacturer most Is i&B faot that sinew 1922 ww have steadily increased eur exports te Oaile. Notwithstanding this increase in our experts te Chile, the figure for 1926 i t not high enough te place Chile within the first thirty leading  r.'  •  s  - in markets for Canadian goods and leaves Canada about twentieth In tht l i s t of those sountries supplying Chile's needs.  These ratings  are not relative to Canada's position in the international trade of tits world, and oertainly are sot high enough for our trade with the third country of eosnerolal importance in South America. Canadian commodity exports to Chile ©emprise:  Rubber tires Canned Salaon Structural Steel Fans implements Sewing Maohines Automobiles * Parts Alnminisa mf gs. Hlsssllaneeus  A!3§  }m.  8 39,277 168,968 188,197 88,898 113,135 68,847 88,888 188,888  8 106,677 188,898 639,214 81,811  $ 776,867  81,499,179  «M£Z 6  192,897 102,461 481,887 86,606  *  •  181,881 64,979  129,489 18,169 889,484  • P e * e r j JSWSFJB*  8 lL,182,496  The above summariies the ehief Canadian exports to Chile* Canada has not published detailed statistics of exports to Chile prior is 1928 so the material available is very soant and meagre.  Fully  manufactured goods eemprlse nearly the whole of our exports to that country.  The largest single item, that of structural stool, is one  that we expert to Chile and not to Argentina or Brasil. The fact that wt are not shipping to the last two countries, yet export a considerable quantity ts Chile, is a matter not easily explainable. Our exports of rubber tubes and tires, sunned salmon, automobiles and farm implements would seem to be expending substantially, while the market for Canadian sewing machines and elminsa menuf astttres has almost entirely disappeared,  - 179 1  .• i!  Besides the above commodities the United States supplies Ghile with substantial amounts of pipes and fittings, iron and steel bars and reds, wire of all kinds, sheet produota, paints and varnishes, lumber, newsprint, and asbestos. In many of these lines the Canadian manufacturer could secure substantial sales if only he would get out and secure proper representation in the market and advertise his goods in the  i j •'•if :,  -V  The Chilean market is not an open market, nor an indent market, but is essentially a merchant market. Most of the Import  11 - ' i  ' ' |  true* of the republic is in the hands of a small croup of large lfrglish and American merchant houses who have been trading on the coast of South America for many yours*  The British houses predominate  la Chile and the Canadian manuf aoturer wishing to sell there should  If  ill mm Mi  be ooatont to place his produots in the howls of these old-established houses.  ',:%','•'•>•'M  To do so is much hotter than to undertake the comparatively  laborious took ef working up a trade by soiling to the Chilean importer :C  and consumer through a soiling organisation of his own or through & local representative. Pamphlets of interest to the Canadian manufacturer are "The Republio of Chile, Its Eoonomlo Condition and Trading Opportunities" published by the Commercial Intelligence Service of the  ,)  I <  Departaent of Trade and Commerce, Ottawa, Canada, 1928} Trade Information • '•••] ••:  Bulletins, Hos. 8T4 and 881 "Markets of Southern Chile" and "Markets of Northern Chile" respectively.  '  - 180 -  *  Colombia  Tho Republic of Colombia la situated In tho northwestern port Of South America, covering an area of 477,000 fquaro alios, and with a population of sen* 6,600,000.  Tho purchasing power of a largo  proportion of tho people Is sot great and tho purchases of tho average selsneian will not ooror tho wide range Of articles bought by tho evermge Oanadian. Luxuries haw* no plaoe in the budget of the average native. He contents himself with the purchase of cotton cloth and • % e r textiles for making clothes in the home* with staple foodstuffs* M a l l hardware, household wart, and with a Halted amount of agricultural machinery.  Thus the possibilities for Canadian exports  to Colombia will not he very great ether than in these lines. The wealthy Colombian, of course, is in the market for a much wider range Of articles and of a higher grade or quality, his needs and demands being on a parity with those of the saaO class of people in Canada. Colombia is a country which is primarily agricultural, exporting farm products and importing manufactured articles. Coffee sight be called the "barometer of business" in Colombia. Upon this «rep the exonoaii structure of the country is almost entirely founded. Favorable priggs for ifff»e and a goed erep"-are quickly reflected by an native market and an iaereeee of Satports. In this respect Colombia is f&ry  like Brasil. The oof fed erep is marketed throughout  the year, «» there U no marked seasonal purchasing power.  Imports  - 181 -  are, however, heaviest during the last quarter of the year. Other important exports from Colombia are gold, platinum, bananas and hides, but none of these in themselves have very much effect upon general ooonomio conditions. Manufacturing is still Unimportant, though showing steady development from year to year. While "tills haa a tendency to diminish the market for certain manufactured articles, it creates a market for such products as she* leather, shoe findings, show machinery, cotton yarns and nvachinery, flour and gristmill machinery, and sugar mill machinery. Shoao growing industries, of course, tend to increase the general prosperity ol the oonmunity, with a corresponding increase In purchasing power. Packing and crating goods consigned to Colombia is a delicate problem In the combination of lightness with strength. Grating must be strong enough to protect goods through the vicissitudes of several hundred miles of transportation by rail, river, and mulebaok in the heart of the tropics and ever lofty mountainsj en the Other hand, if the crating is toe heavy, the customer pays Burdensome customs duties, which are levied on the gross weight of each package. When an order is placed abroad by a Colombian importer, explicit instructions as to packing are usually forwarded to the exporter, fgfth Igajrjsjljtti «nat be followed to the letter tar the shipper.  If he cannot do this he should tacitly decline the order,  because it is better not to do any business with Colombia, than to do It tton a little badly. If shipping instructions, no matter how peculiar they may seem to the Canadian exporter, are net faithfully  \  * 182 carried cut, goods nay arrive packed in suoh a manner as to render them useless, or as to cause at least considerable inconvenience to the consignee. The Canadian shipper must remember that his customer has probably been in the importing business for from twenty to fifty years and knows his market. He must ecnply with the instruct ions 61 the man en the spot or go out of the expert business:  (Calendar Tears} 27,774,008 98,710,661 29,178,186 28,596,000 58,668,000, 51,812,000 86,146,000 84,714,000  mz 1983  list 1926  ItSt  [Fiscal Tears] $  28,686  101,578 149,861 117,199 260,166 269,678 683,700 ( f i r s t 9 months) 816,806  fafoablaa Exaortl 1918 1920 1921 1922 1923 1924 1928 1926 1927  8  33,899 000 69 133 ,789 55 603, ,000 48 809, ,000 89 434, ,000 86 414, 000 82 708, ,000 89 267, 000 m  «• •*.  360, 609 364, ,852 480, ,008 719, ,441 693, 088 (First 9 months) 846, 812  The foreign trad* Cf Colombia is increasing steadily, the increase being apportioned almost equally between exports and Imports Both hare increased roughly ** ***** *»• P™""** level •* 18*8. Any fluctuation in the price of coffee, however, is going tc affect belli the imports and experts ef Oclembia, cc wide discrepancies are likely  • 163 «in,  \-m  •;u i!  to appear with extreme suddeness in statistical tables.  The Waited  States a p p l i e s about 50% ef Colombia's requirements and Great Britain another 25%. Germany ranks third with B%, and France fourth  'J K»\t ill,I  With 4%. Canada Supplies less than 1%. Canadian participation l i disappointingly low. Although in a position to compete in many lines the Canadian manufacturer has not done so because ef ignorance of the possibilities existing in the republic.  Our exports should  !  •:v''< •  I I I h ].  increase, however, as the country develops and progresses.  •• :i  the chief Canadian commodity exports to Colombia are:  7,880 1,496 11,201 32,403 2,634 47,38f 18,518  Rubber Tires Canned Salmon Cotton tech Iron Pipe JLwtemobilei A Parts  12,653 17,189 18,778 38,994 12,188 383,068 88,855 •  12,000  Wheat Miscellaneous  *  *0  iiTrTf  269,678  mm  $688,700  I  7,167 104,000 24,993 28,559 7,106 266,011 16,340 22,210 104,300 „, 266.020 I 816,806  Canadian commodity shipments to Colombia are low, especially When one considers that we ship doable the amount to the neighboring republic of Veasvuola, whoso population numbers only One-half that of Colombia.  Our participation in the foodstuffs requirements of  Colombia should be higher. percentage at a l l .  Only £» *»•»* *® we have any large  Canada should oxport mere and more wheat to  Colombia as American lUppUii become necessary for domestic consumption.  l?'i I :! 1  •<,U  - 194 -  fat high duty on flaw will prevent a heavy Importation of wheat in that form.  Canadian participation in the confectionery trade,  liquors and beverages, and in lard eould be substantially higher than it is. Colombia's agriculture is still In a primitive stage and Very little agricultural machinery is imported. Whoa importations do eomaenoe the Canadian manufacturer should bo in a position to seouro a share of the Initial exports to that market. A considerable market exists for agricultural hand tools though, many of which the flanmdlan manufacturer eould supply.  Importations of Industrial and  other maohinery, and of other metal manufactures are low at present. there is practically no market in Colombia for lumber, imports being very low.  Canadian participation in paper, wood pulp and  newsprint should be very much greater than it is. From forty to fifty percent of Colombia's total imports are textiles, with the trade almost equally divided between the United States and Croat Britain. Canadian participation is low, and so pupular are British goods, that it will be very difficult to overcome the preference for them.  Canadian  exporters of textiles should not look upon this market as being a very profitable one for sales. The above summarises the leading Colombian import requirements and attempts to show the position of Canada in fulfilling them.  Any  interested Canadian manufacturer who is desirous of securing sales la Colombia should avail himself of * e pamphlet -Caribbean Markets for American Goods."  II Colombia - Trade Information Bulletin No.342  published by the Burst* of Foroiga sad Domostio Commerce, Washington, D.C.  - 185 -  &•  Cuba  Cuba It a wall Island in the Carlbbaan 3a*, with an are* ef 44,164 square miles and a population of 3,850,000.  In  tpite of bar relatively small alia, Cuba, la a vary progressive teuntry and har import a reach a figure of ever 1300,000,000 annually* The Cubans an Joy a relatively high purehaaing paver, Sapertatlena la 1923 representing $86 per capita, a figure exaeadad I f lav tauntrlea Of the world and by nana in Latin America. However, Cuba's economic welfare is entirely dependent upon one commodity, augar, the sale of i t abroad at profitable prieea being refloated in large purohaaea abroad, valla lav prioes result in a leaaened olreulatlon of money and a eonaaquent curtailment of purohaaea on the part of the large pereentage of the population whioh la direetly dependent an the augar industry. Cuba Is essentially an agricultural country but owing to the concentration of effort in the sugar industry l i t t l e acreage is devoted to the production el other foods. Sugar and i t s by-prodmots oak* up approximately 85* of the total expert trade of the island. Tebeeao i s the second trap of importance comprising about 10% ef total experts* She produetion ef eatae, coffee, pineapples, citrus fruits and vegetables i t only ef minor importanee. Although Cuba It plentifully endowed la both soil and olimate for the production t i prastitally all Mtaatial fted commodities, i t s energies have  - 186 *  boon concentrated on sugar and tobacco, so the bulk of ordinary food requirements must be imported. Foodstuffs comprise the largest single item of Cuba's Imports consistently averaging 35% annually Of nor total importations. The opportunities for the Canadian exporter of such products are very good. Cuban forests are today denuded 00 all her requirements must bo imported. Mining Is unimportant, only smell quantities of iron, eepper, manganese and oeal being found. Very l i t t l e manufaotttrtng i s carried on Other man la the simplest manufactures oommm to Most Latin American oountries. Sugar and tobacco manufactures comprise almost the ehole l i s t .  (fiscal Tears)  (Calendar Tears)  m$  6  1130 1921 1931 2923 1924 1935 1926 1987  140,131,000 , 687.017,000 884,403,000 189,308,000 288,896,000 289,631,000  1,496,667 6,329,783 8,878,768 8,974*432 8,669,166 6,776,608 7,142,406 296,040,000 . 8,624,713 ( f i r s t 9 mths) 4,784,331 *  •  n«h»n Exports  IfU  BSP0Eia-fe2-S4S*da  164,070,000  i'SH'fl!  1320  794,089,000  17,588,520  1921  278,061.000  !M£*2!  1938  828,478,000  13,063,868  1823 |»24  421,075,000 434,868,008  H^I'S! ^'IK'?!I  1926 l§26  » 553,984,000  7,TIB,138 11,063,284  JJ37  $  6  (first 9 mth») 8,768,394  pl  - 187 -  I  During the decade 1913-1924 Cuban trad© more than doubled.  ill  4 ,* !i V  Imports doubled and exports increased 250 percent.  !  :  There were abnormal figures for the year 1920, a t e r r i f i c slump -i  in 1921 t o t a l s , and a steady recovery since that time to the healthy figures for the calendar year 1924.  Canadian participation  i n Cuban trade refloats a Tory gratifying growth.  '.  iM  i  From a pre-war  figure of $1,496,857, or 1% of t o t a l imports, Canada*! exports to Cuba bare increased u n t i l they stood at $8,524,713 in 1928, or  .  •  j  roughly 3.a* of t o t a l imports.  This showing should be very aatisfas-  ttTf til the average Canadian businessman, as ear exports to Cuba ha*e shown a steady increase the figure for l a s t year being the highest yet attained.  Canada purchases far more from Cuba than  wt export to that country, however, the figure being as high as •»»©09,000 i n 1921, with an "average" sins* that date of $11,000,000 annually. totals.  Importations of sugar and tobaooo account entirely for the Since we are fairly heavy purchasers If Cuban exports i t  i s not a t a l l inconceivable t h a t Canadian exports to that market Will increase s t i l l further in the next few years. the United States I s a natural supplier of the Cuban market inasmuch as i t produces just those things that Cuba needs, proximity t o the market i s a helping faster, and a reciprocity t r e a t y gives American goods a 202 to 40* reduction in the Cuban customs t a r i f f . 1% i s not surprising then that the United states furnishes roughly 70£ of a l l Cuban imports.  Croat Britain furnishes $% of a l l imports,  Spain 4 * | Oswumr **» ***»»• *»* Canada each 3*. Canada ranks sixth in the l i » t of countries supplying Cuba with her needs.  Canadian tvado  j  - 188 -  la tht republic is increasing, Canada finding an expanding market In Cuba for suoh eonaodities as totatoci, flour, ahlakey, eadfish, oondtnsad milk, lumbar, newsprint, automobiles and oaloluM carbide.  Pihfftfffiin ggtmgtHtr M8fwnl8 \? ftftt-  Petatoes Oat* Ham*  8 2,030,759 $ 2,1*9,893 $ 2,918,613 1 1,878,873 192,841 102,180 10,888 4,304 1,468,811 970,188 1,118,198 868,264 wuskey 787,288 1,282,099 888,788 194,708 70,248 89,321 74,398 48,836 !$r 827,807 SH*7r,397 986,674 682,000 n**,dried, tasked, , yWkltd. Uilk eendtnsed 880 133,408 378,188 208,288 Planks 4 Boards 1*8,218 211,675 184,168 92,000 Printed Matter 64,802 86,868 48,294 87,000 * 84,108 179,404 422,804 Ite/sprint Anta—biles 96,200 84,353 U7,U8 82,499 Jherw t <Ut>V 128,491 126,297 68,108 Otpper »Srt Sleetrlc Apparatus 24,6X8 68,473 72,818 34,881 »MHHlm Sulphate 77,812 87,001 14,986 18,670 Caleium Carblds 82,087 316,272 884,384 208,870 Miscellaneous 797,08t 388,220 607,006 117,676 — — — • — * • » » — * — —  $ 6,776,608  I 7,142,406  I I "  I  • »  9 8.824,713 $ 4,784,381 * first nint s»ntfct.  AS Cuba txports prastleallr ettrytaing that i t produces and Inverts nearlj ettrrtbiaf i t sonsaass, i t s parehmtoe are nsosssarllj fttritd and extentlte.  B * CWban narkat absorbs aeieh tha saat prodnsts  as dees tht deaestie Oaaadlan market, and i t rtfrtstatt a well-dareleped fiald of ondtacor far tht Oantdtaa exporter.  The smrket has bean •  - 189 .  expanded and tho desires of the ptoplo stimulated by advertising and oonoentratod sales effort, nevertheless there are many lines for which a trade oan be built np and existing demands stimulated by proper cultivation. Tho above table serves to illustrate fairly well tho nature of Cuban demand and the nature of Canadian sales to Cuba. Our salts of flour to Cuba are steadily increasing and wo are supplanting the United States as the principal source of supply but there is still room for considerable development in ths trade. Canadian fish lead in tho Cuban market but competition from Scandinavian souroes is very keen. There is a ^fxj  large Import  trade in oondensed milk in Cuba and Canada maintains a fair share ol this trade. Canadian producers of condensed or evaporated milk will do w«ll to givs special attention to the Cuban market as the demand is continually on tho inoreaio. The Cuban market for newsprint it enormous and Canadian sales have increased rapidly in resent years. There is still large room for Improvement though. Canadian shippers are under no handieap as newsprint enters the country free of duty* Besides these commodities Canadian manufaoturers have secured extensive sales in copper wire, elestrie apparatus and calcium sarblds. Other items that Cuba imports in large quantities but in which Canadian competition is as yet ineffective, are, textiles, sugar-mill machinery and supplies, iron and steel materials, leather manufactures, •mtsmebilos, soap, lard, vegetables, and fertilisers. Total importations of all of thess products, with the exeeption ol soap and fertilisers, amount to owsr •10,000,000 apiece annually.  - 190 -  Together they aooount for over $100,000,000 so the figure alone will serve to show the possibilities existing fer the Canadian exporter.  'mm |||!  - 191 -  H  BMOaUia Bgmfccli  1 •  i <  h  ;•  ' i  Tho Dominican Republic forms the southern part of th«  f  island of Santo Domingo, Haiti occupying tho northern area. The  H  total troa of this Caribboan island i t about 30,000 squaro miles,  ;  11  of which tho Dominican Republic comprises 19,382 squaro milos,  • •  Thi population i s roughly 1,000,000, largely Spanish in origin, 09* Spanish creel** tho Araerioan oooupation of Santo Domingo i s  ll !  e, fatter of prime eoxaerolal lntorost to all exporters to that of*tm* It has brought many advantages whleh are only boginning to bo understood, having increased the importation of many eommoditles  ' ";{•  P !i  *  M\  ana exerting a considerable lnfluenoe upon the typo of suoh imports.  J|  Canadian exporters of produots for whioh a considerable demand  'M •'•":*Si  •••>-'.i'£i  •sifts in Santo Domingo are urged to canvass this little-known  \  field at their earliest oonrenienoe with a view to being on tho  J:  ground for tho development that the next deoade should show* Although essentially an agricultural country tho Dominican Republic produces but four produots on a large soalo, i . e . , sugar, oacao, tobacco and coffee, their importance being in the order  m  named. On these tho country depends for i t s prosperity. Sugar  f  • • ir  • i-  '  Is by far the most isjperttat of those products and i t lo rapidly  ;:'••%  transforming tho southern peninsulas of thii republic Into IntensiveJy  i <;/i  developed and thoroughly Industrialised provinces.  Indloontally  Panada is the loading purohafcr of this crop, amounting to $6,T90,50S  •'•it  IS'  <• 192 -  la 1926. Uany ether agricultural products are grown on a sommeroial seal* lot* domestic consumption, and in ion* oases •nail amounts are exported, including bananas, coconuts, cotton, corn and beans*  She agricultural development of the country is  supplemented by a live stock industry of increasing importance, Capital alone preventing the Dominican Republic from gaining a place in the list of meat-exporting states* The Republic is rich in minerals, especially geld, silver, iron, salt end petroleum, but no mining en a eemmerelel seals is being carried en. The fishing industry it as yet undeveloped* Ptrtst wealth of very sensiderable vales remains waexploited except fir abler exports of mahegany and logwood. Manufacturing is a#fc tarried en to any extent in the country as yet. the only really important industry being that centered around the refining of sugar•  Cigars,  ftgarettts and tobacco are manufactured on a sufflciently large enough seals to supply the domestic market.  Shoes, hats, matches,  clothing, liquors, tiles and a few other articles are manufactured en a small scale, not supplying more than a fraction of the local demand. Manuf aotureo of ether articles must be Imparted from abroad* Pomfrilflan Kspnb.y.a Imports (Calendar Years) 191S 1920 1921 192B 1923 1128  iiti  mi  *  9 ,272, 000 46 ,828, at* 24 ,58B, U ,117.'49? 18 ,248, 082 21,,888,1Bfl 28, 200, 080 28, ,239, 098  (Fiscal Tears) 69,721 189,186 247,43 ft 64,497 168,222 298,232 262,849 888,866 348,867 (  first 9 months)  - 198 -  PffiftMgftn RfflWthJAa JftMHrVf If 13 1920 1921 1922 1928 1924 1928 192ft 1927  10,470,000 82,781,000 20,614,000 15,291,858 26,042,821 30,262,896 26,800,000 26,771,000  Exports to Canada 1 803 963 10 675 287 7 573 794 4 065 910 5 986 643 8 800,060 2 686,000 6 791,339 3 860,451 (firet 9 months)  Hie foreign trade of the Domlnloan Republic ha» increased roughly 250* over the pre-war figure of 19181 Sasport* and exports inoreaslng In roughly the same ratio.  This reflects a normal and  healthy growth for the country as a whole, the United States furnishes 652 of a l l the republic's import requirements, but Vigorous efforts art being made by Germany, Groat Britain, and Canada to wrest some of this trade away from them. Great Britain Is second in the l i s t of exporters to San Domingo with 655 of the total.  German competition  i s also very active and may be expected to increase rather than diminish. Its share likewise amounts to 5*, and is felt in practically all lines of manufactured goods, hardware and cutlery, enameled ware, electrical goods, paper and paper products, belting and hose, textiles, paints, furniture, chemicals, and musical instruments. AUfcough Canada's share in the export trade of tte island is considerable, amounting to well over 10* annually, our share in the import trade of toe oountry is wry small, amounting to l i t t l e over 1.2* on the average.  •m Considering our Big purchases of sugar front the island this share it absurdly lev, the highest total yet attained by our exports being $362,849 in 1925. Even with this low figure, however, we stand 8th In the list of those countries Shipping to the Dominican Republic, and with two trade eommissloners new In Hi* Caribbean field, Oanada is making a determined drive for a larger share el the business. Three eommoditles from Oanada account for aikaost the whole of wnr exports to the republl*.. These commodities are wheat flour 40*, oVlcd and smoked fish SOJt; and rubber goods K # . Other sommodities la which Oanadian partieipation might well make itself fslt are biscuits and senfestionery lines, butter, lard, and *»i«e amongst foodstuffs; hardware tools, agricultural machinery, barbed wire .amongst Iron and stool products} cement and lumber for construction purposes} textiles, automotive* and furniture the importation of all of those items is considerable in the Dominioan Republic, but in none is Oanadian participation as large as It might possibly bo.  »  - 195 -  I  Eouadpr.  Ecuador ii a relatively small and unimportant republio en the vest coast of South America.  It comprises some 120,006 square  miles of territory and supports a population el 3,000,000, mostly Indians*  The republic Is very backward, the inhabitants have a lev  purchasing power, and the possibility fer -the sale of Canadian quality good* there li Very poor. On the whole Hie situation in Ecuador calls fir much caution in taking on any new business* Agriculture) is the chief occupation of the inhabitants but It is tarried en in a most primitive fashion. There is little or no market tur modern Implements or machinery although the day may not be far distant when there will be* Ecuador hoi the great handicap of being essentially a one-crop country, the prosperity of the country being almost entirely dependent upon the eaoao crop, only a small percentage of which is consumed locally*  Cacao constitutes mere than  TO* of all exports. Other agricultural crepe and exports are coffee, cotton, nuts and hides* The Andes ten tain inestimable mineral deposits which have ssaroely been touched* as yet*  Sold is the only mineral mined to any extent  Petroleum is to be found in the country but because of the  difficulties of transport and the cost of developing ell fields it vill probably be many years before any producing veils are brought la* Sales of mining machinery te this market, then* must continue to be negligible*  - 196 -  Manufacturing la carried on on a vary amall soalo. I t la confined to the production of flour, augar, chocolates, textllea, •{lots, Panama hata, and beverages.  The output ia amall and shows  l i t t l e promise of ready expansion.  Sales of industrial machinery  are negligible and moat of the manufactured goods sold In the market are Imported.  This i s a "prise market," not a "quality market," the  cheap good getting the Sale in nearly every instance*  This fact la  bound to militate against the sale of Canadian goods. (Calendar Years}  m$ w* *m  1  *w» -**VsP83  !»»§  sm ym mi  8,881,000 30,420,000 6,952,060 9,234,008 t ,788,000 30,581,088  :  |  48,898 34.890 32,868 33,638 681889 88.292 258,078 88,476  #-  •*.  i  ( f i r s t 9 months)  «*  B  1913 1888 1821 1928 1828 1824 1923 1926 1927  15,818,808 28,483,000 10,035,008 12,807,000 10,188,000 12•386,088 !  «  *  m  •  Wi > »&Jtfl^J'"i MTTi r H  487 247 78  - 191 -  The t o t a l foreign trada of Eouador has not increased ewer I t s pre-war trade, in fact, i t s trada in 19M was slightly lower than l a 1913* Ecuador can almost be oonsidered as a s t a t i o Market in a world of advancing oonmeroe.  Canadian participation  in the Imports el Ecuador has likewise remained f a i r l y stationary. Over annual experts to tfce republic will net average much above 180,000 a figure whioh can wall ha oonsidered as negligible.  The  principal imports of the country are t e x t i l e s , wheat flour, lard, hardware, tools and implements, eheniaals and vehicles.  Canadian  participation in some of these imports might well be larger than i t i s , but the p o s s i b i l i t i e s far a long time w i l l continue to be small.  *  • 198 -  f  'ii: Haiti j,.  (:••:  m  in  The Republic of Haiti occupies the lesaer and nor* rugged half of the island formerly known as Hiapaniola. The  ft  i  total area of the republic la alightly over 10,000 square miles, with a population eatimated at 2,3i0,000,mostly negroo*  The  nature of the population moana that the purchaalng power and •taaderd of Urine  of the people la very low* Poaaibly the demand  n  m  |j|  1  :|||  Of the Haitian it at primitive and reatricted aa anywhere in the world*  Imports are largely limited to fleh, flour, lard, oottons,  swap, and small agricultural implements. The demands of the educated minority are as varied and ae high-class at elsewhere in the Caribbean, but are of little interest te Canadian exporters because  3J j •  of the strong continental bias, and a 33-1J3% preferential duty on  n  French goods. Considering all factors, then, Haiti can almost  Jf  bo considered as a Closed market to Canadian goods. Aa one would expect, agriculture is the main occupation of the inhabltanta and the prosperity of the country depends upon the successful marketing of the crepe and the corresponding price received for thorn.  Coffee conatitutea 78* of all experts, followed  by cotton, auger, and oaeao. Cultivation la extremely primitive and entirely dependent upon the vagaries of the climate. Mining is undeveloped and the conaiderable quantities of hardwooda on the island  54 !  f  - 199 -  have not been exploited.  Tho Industrie! in the republic are in  a most primitive state of development. Very little manufaoturing if oarried on, and that little on a email seals, not supplying even the looal demand.  Most of the manufacturing pertains te the preparations  of the staple agrloultural products for export and the production of smell easily manufactured articles as candles, matches, soap, alsfchel, confectionery, ice, leather, cigars and cigarettes*  Thus,  even where Manufactures do exist, the output has te be supplemented If importations from abroad.  The extremely lew purchasing power  of this "price* market will, however, debar extensive Canadian sales there.  flaltlaa &n?9rtf (fiscal Tear ending Sept. 20) 1914 1120 1921 If 21 1928 1924  1920 1927  7,812,792 27,398,411 11,907,208 12,380,271 34,187,908 24,098,000 20,230,000 18,881,000  , • -flffBftytafromfonftflf... (Fiscal fear ending March 21) 174,943 98,138 71,107 214,207 401,059 489,890 008,117 $20,000  (first 9 months)  iwraif to frffMF  MteOB Baaafli 1914 1920 1921  $ U ,000,000 21,820,000 0,890,409  1922 1923  10,712,210 14,891,012  1924 1928 1920 192T  14,170,187 19,404,172 20,184,000  42,050 234,551 101,250  (first 9 months)  12,019 130,102 103,787  - 200 -  She total foreign trade of Haiti has roughly doubled since 1913, wiia import requirements growing faster than exports. The United States supplies 812 of all Haitian imports, Great Britain 8%t Germany, France b%\ Germany Z% and Canada Z%* Canadian participation has more than doubled since the war and now attains a figure of more than $400,000 a year* Nothwlthstanding this increase the Canadian share in Hie market is bound to remain low because of the lew purchasing power of Hie people and their pronounced Continental lpe*fl™» ^WJPsJPfp  A very considerable number of opportunities for Canadian Cjgwrters have occurred in recent years, however, mention of which should be made here*  Among the leading merchants sentiment is  decidedly favorable to Canada as a source of supply for commodities similar te those supplied by the United States* Flour accounts for T&2 el Canadian exports to Haiti. The possibilities for the further expansion of this trade are good and should be Investigated by interested Canadian manufacturers. Fish le another important item of import tho,t Canada can supply, codfish being the preferred of fee people*  Confectionery, cheese, butter  and lard are ether important i*P©rts of foodstuffs. Unless Canadian shippers can meet American prises, however, it will be useless for them to attempt the Haitian market at present*  All tinned goods  pay a high duty en entering the republic, SO never supply this market with tinned of fanned goods*  Use cartons wherever possible. i  -201 -  Since there is practically no cultivation of crops in Haiti there is little or no demand f*r hardware tools or agricultural implements. Haiti imports her entire lumber requireaeati from the United States. In view of the ease of delivery and the endurance ef lens leaf yellow pine in the tropics, it is deubtful if Canadian Shipwera ef spruce or ether competitive weeds would he justified in entering the Haitian market at present. Oanadlan eeriest if well known one hae been favorably reeeived In the market during the past, however, ^m w  W™^l 4 ^ ™ r i w w  ••wtw  •'^•ie^w#<ww**M  wesse^|s^p V A vAv^a  «»ee  w w  ^uww*a • **•  w  woe  JMWitlal a** American cements, ee thie trade will have to wait bet ere being capable ef deveJepaent. Textiles aceeunt fee1 the largest single item lie Haitian imports. The demand in for the cheapest possible settene, drills and denies predominating to the exclusion ef prints. Canadian manufacturers can find a good market here for their cheapest Usee providing they can n*et foreign competitive prices.  * 802 *  K  Mcxiao  Mexloo Is a oountry of 760,290 square miles and some 18,000,000 inhabitants. The people are mainly Indians or natives Of Spanish descent and consequently their purchasing power is not wc*f higai Added to this handioap i t the last that the country is politically insecure and tho constant revolutions and disturbances militate afjainst trade with the republic.  When Conditions become  •ere settled one smy> expect trade with Mexico to Increase rapidly* The mining Industry Is the mainstay of Mexico*s prosperity, the exports of minerals constituting 30* of all Mexican experts. Sac mining industry in Mexico i s expanding, hence the market i s a rcry good one for mining supplies and machinery.  The fact that the  flnitsd States controls the inveswaent situation In Mexico and the proximity of that country to the republic will prevent large exports of machinery from Canada, however. Mexico is the largest producer of diver in the world, while gold, lead, copper and tine arc other very important minerals mined in the country.  The production of coal,  Iron and mica is relatively unimportant* Petroleum and crude oil experts command an additional 45* of the total exports of Mexico, so that combined, 782 of all Mexican exports are composed of mineral and o i l deposits* Mexico i s the second largest producer of petroleum in the wcrld and probably will remain so for a long time.  * 203 -  Hmoroas minoral and o i l oxperts from Uoxleo In 1924 totals* orsr $240,000,000, exports of agricultural prodaots only tofelod 628,000,000.  Com Is tho loading product, followod by oottoa, smear,  vhoat, s i s a l , ooffoo, and bananas. Uoxioo i s mot a good nmrkat for Imported foodstuffs as tho domostlo produotion i s soffloiont to moot most moods* Manufaotaring Is relatively unimportant in Uoxloo.  tho  principal industries of this olass l a tho or dor of their lmportanoo sro t e x t i l e m i l l s , stool mills, eigarette faotorios, breweries, flour m i l l s , papsr mills, oOmoat plaaf» «hoe faotorios and soap faotorios, tho only one of any groat lmportanoo being tho toxtilo faotorios.  Tho domostlo markot i s aoraally a largo ono, and with  a return of prospority thoro mill bo am iaeroaslag domaad for modorn maohinory and equipment to roplaeo tho Old and worn-out f a s i l i t l o s .  1915 1921 1922 1922 1924 1928 1M6 lit*  1912 19a X922 1923 If U It*.  [Oaltndar Tsars) (Fisoml l o a n ] % 99,111,000 I 218,971 242,966,000 1,066,19T 146,000,000 1,19T,697 162,974,000 9,291,096 156,988,000 9,818,997 147,826,009 ( 9 moo. only) 2,866,409 199^123,000 2,987,128 * ( f i r s t 9 months) 2,086,822  $  U6,8f9,088 971,807,008 460,126,000  *  J'Jfl'Si I'Sf'U! J'IS'JS?  275,979,000 298,222,000 247,211,000 (9 moo.paly) 297887,060 % ( f i r s t 9 months)  9,860,721 f'fS'iS 2,676,816 8,684,460 1,989,562  - 204 -  Mexican Imports have doubled since 19X3 while exports have inoreased 250*.  This fact reflects an ordinary economic growth  that has coma to moat nations of -the world In the like period. Canadian exports to Mexico are 1,000* ahead of the pro-war average of lata than $250,000 annually. For the past four years wo have maintained an annual expert figure to Mexico of around 13,000,000 plaolng Canada sixth la the l i s t of countries supplying Mexico's needs.  Proximity gives the United State* a predominating advantage  and they supply roughly lit  of a l l Mexican imports.  Great Britain  and Germany each ship THE of the total imports, Trance 9%, Spain tt and Canada 1%. Petroleum, ship** stores, coffee and i l e a l account for Mexican exporta to Canada, while we ship to Mexico aoda and compounds $1,287,288; wheat $200,000} rubber manufactures $110,000} paper and manufactures $115,000} machinery $100,000} automobiles $180,000; electric apparatus $55,000; acids and ether chemioala $240,000. Together our experts total around $3,000,000, nearly a l l fully manufactured goods* An analysis of Mexican trading opportunities, conducted by the Canadian trade commissioner in Mexico City, in 1925 showed that Canadian participation could also be greater l a the following liaOs;dried eed and smoked saloon; condensed milk and cheeae.  The possibil-  i t i e s for sale of a l l these produots are very good but Canadian exporters have not yet made any serious attempt to secure a share in this trade.  Canadian wheat and flour i s known in the market bu^ Mexico  - 205 -  seems to bo treated with Indifference by the Canadian exporter, for we supply only 4% of tiie requirements of the market* Lumber Is another very large item of Import into Mexico, amounting to $19,000,000 i s 1925, yet Canada supplies only $30,000 worth.  British  Columbian exporters should bo In a position to supply a fair share «t Mexico*a requirements if the psoper methods nooessary to introduce the Imber wore followed.  Canada should also bo able to compete in  the export el capper wire; lino ingots, hardware tools; barbed wire; • o l i o , taoks, screws and bolts; piping and tubing; mining and agricultural machinery. Textile imports aceeuat for 140,000,000 fairly evenly divided between Great Britain and the United States* Canadian Sales are assured if competitive prices can bo quoted. Mexico imports paper and paper manufaotureo to the value of some $10,000,000 of which Canada supplies about l£.  Xhie figure is absurdly low for any  country «l,nlm<wff to bo the world*s largest supplier of pulp and newsprint. Much of this trade Canada can secure from the United States.  •  • 206 »  L  Paraguay.  Tht Inland republic of Paraguay comprises 97,722 square allot and supports a population estimated At 1,000,000. WL9 population It, however, mainly illiterate and of a low pwrohaslac power to the Paraguayan market will not bo found to bo u very Important one. Paraguay Is prlamrily an agricultural and stock-raising country, and its potential resources are very great. Its pasture loads are considered to be of the best in South America, while tho excellent soil and climate make it exceptionally vol! adapted for Hut cultivation of most of the products of tropical and sub-tropical lands*  Tho most important products are cotton, tobacco, rice and  yerba mate.  «Those products are all exported and the price received  for them determines tho ability of the Paraguayan to purchase foreign goods. The most important single industry in Paraguay is cattle* raising. The export of cattle and produota is one of the principal items in tiie foreign 'trade of tho country. Paraguay it rich in forests but only such areas as art within easy hauling distance of navigable streams and tho railway are worked At this tint. 90* of tho timber production is exported, and forest products account for from 40-60* of all Paraguayan exports.  * 207 -  Quebraeho logs and quebracho extracts, usad In the tanning industry eonstitute almost the whole of this figure. The total Canadian imports from Paraguay for 1924, 1925, 1926 and 1927 are made up of quehraoho extracts. manufacturing is very baokward in Paraguay only eueh induetrlea as sugar mills, flour mills, soap works and boots and •mess having been established. These are only en a very small seals and do not warrant the Importation of large or expensive machinery. manufaetured artlelea, to find a tale In this market, must be cheap. Tnle fast will greatly reetriot the sale of Canadian quality goods in the market.  iRfflorftg teas OfMfr 1913 jfM 1922 192J X924 1988  $  JJjv  T,836,000 6,108,000 4,681,000 6,738,000 9,661,000 18,489,918  -  I JT JJ *>«*  (<ir«* • ««nths)  27,827 xfcaHSf •Hffi ,I". iVStPftHft  1819 1921 1928 1988 1924  •  6,484,000 6,801,000 8,097,000 9,799,000 9,720,000  1986  18,743,000  JJJJ  I  »  JMg (first 9 months)  7,829  * EOS •  The total foreign trade of Paraguay has roughly doubled slnoe the war, but is almost entirely with Argentina, Great Britain, United States and Uruguay in the order named. Canadian partiolpation is inf initesmal and shows little premise to increase. Our only expert Is automobile! and rubber tires and tubes, ameunting All told to less than $60,000 annually.  This  market should never bo attempted by a Canadian manufacturer until ho has consolidated his Sales in the other republics* When that has been done a penetration into Paraguay In search of additional profits may prove successful.  - £09 -  POTU  Para it rapidly emerging to take ita place alongsida Of Argentina, Bratil and Ohlla aa the loading nations of South America.  It la a oountry full of agricultural and mining poosibllltloa,  both of which ara making steady progreas. The oountry has an area of •00,000 square railsB and a population of slightly ovor four millions. Hut temperature of tht ooast region la tampersto and pleasant owing to tha influence of the Humbolt currant, but as tha oountry la wary dry irritation has to bo carried en aJmoat ooasolessly in or dor to produce any crops. Peru is possibly a greater mining country than agricultural, both Rising with each other for tha premier position*  Vast petroleum  and oil deposits exist in the oountry and are rapidly being exploited. Oil well and mining machinery bulk large in Peruvian Imports and the Canadian manufacturer of these goods should attempt to procure a portion of these annual imports. Petroleum is the chief export of Peru amounting to 26* of all experts. Much of this petroleum comes to Vancouver for refining, Canadian imports in 1926 totalling 71,629,581 gallons valued at IS,119.289. Copper is another very Important expert*  Silver, Iron, and other minerala complete the liat.  together, ell mineral products aeaeunt for 51* of the total export*.  - 210 -  Agriculturally Poru It self-suffioing, although Importing considerable quantities of wheat, flour and rioe.  Cotton i e the chief  expert, amounting la 1924 to $25,834,000 or 25* of total export!. Sugar ie also a large export Item, amounting to $20,000,000 in 1924.  Gotten,  petroleum, sugar and oopper together account for almost 90* of total exports* Industrially Peru i s very backward there being almost no manufacturing plants in the country.  Manufactures of every description  then enter into Peruvian import requirements.  Many of these requirements  thf Canadian manufacturer Is in a position to supply.  As the oountry  advances the demands will increase and a foothold now should ensure profitable sales in the futures  [Fiscal Tears]  (Calendar Years 1915  $  1921 1922 1923 1924 1925 192$ 1937  25,531,000 52,592,000 40,734,000 59,812,000 79,829,000 74,158,050 79,457,000  ( f i r s t 9 months)  11,120 914,478 71,553 415,917 558,295 988,798 1,225,356 1,045,478  Kaparti *Q flafitfli 1918 1921 1922 1923 1924 1925 1928 1927  *  44,469,000 82,559,000 71,884,000 99,873,000 108,842,000 88,272,000 87,437,000  (first 9 months)  814,888 4,171,912 8,988,408 4,711,844 4,088,888 8,582,508 5,700,109 8,054,599  - 211 -  Peru's foreign trade is elowly expanding. l i t exports, except for the year 1921, have oonelitently exceeded imports by a eubitantlal margin ever ainoe 1877. Imports are now olosing tills gap for they are growing faster than experts. With Import requirements growing each year this should be a very profitable field for Canadian business expansion. The United States maintains an exceedingly strong position In fulfilling Peru's Import requirements. 50* ef all i t s Imports oome from that oountryj 25* from Great Britain} 10* from Germany and about 1.6* from Canada. Peru ranks a lose behind Chile as a purchaser el our goods, while we rank about twelfth la supplying Peru's needs. However our trade with Peru i s rapidly expanding, being mere than five times greater now than at the end of the war and ever ten times the amount of the best pre-war figure. Although s t i l l exceedingly small this Increase i s very gratifying and should be enceuraged by all possible means. Peru It the only South American country from which we Import more than we export. Our Importations from Peru average $5,000,000 miiw^ij composed entirely of petreleum and eU products. Since we are heavy purchasers of this Peruvian product our experts to that field should rapidly Increase from now on tc bring the two columns of the balance sheet more into equilibrium. The chief Canadian commodity exports to Peru ares  .  • 212 -  w& wheat  *  flour  455,509 8,802 15,096 27,172 87,728 64,550  J£M $  rubber t i r e s canned salmon condensed milk lard mm structural steel automobiles and Parts 116,524 Miscellaneous 152,411  I  928,796  $  456,908 5,375 46,121 21,782 222,758 95,848 39,425 97,393 231,345 1,228,355  JfiSI 3  388,437 90 80,656 12,874 107,034 89,829 22,649 65,840 279,064  $ 1,046,478  The above summarises Canadian commodity exports to Peru, Wheat l i our chief export? amounting to 297,692 bushels in 1926 with a value of #456,308* This Is not a very creditable shipment from Canada as i t comprises only about 102 of Peru's total wheat Importations, With Vancouver as a wheat export center and direct steamship communications with Peru this total should rapidly Jump to over 11,000,000 a year. Flour imports have fallen off almost entirely, largely on account of the high duty which makes i t much better for the Peruvian to import wheat and mill i t in the country* Lard is another item of importance in our exports to Peru. Although amounting to over $100,000 a year this i s only 5* of Peru's requirements. The United States supplies nearly1 all the remainder. Condensed milk is a third item of importance. Canada supplies about 15* of Peru's importation of tills dairy product, the remainder coming from the United States. Our exports of canned salmon seem to bo disappearing almost entirely, and for no apparent reason. At one -time wo supplied 25* of all the salmon going to Peru, now we supply only about 10*. Canadian competition should bo a good deal keener for all those products than i t i s . There Is a growing market for malft la fejru  - 213 -  and as Canada la suocesafully oompeting in Argentina and Brasil, there i» no reason why Canadian exporters should not of far of feetive competition In Para. Canadian sales of tools and hardware in Para are very lev, amounting to a little less than $10,000 in 1925. Canadian exports •aver a fair range of article*, however, each of which should serve as a nucleus for further expansion. There are many ether lines of Canadian hardware which would find a ready sale if they oould only he placed en view and given a trial. The increased development which is taking place at the present tine in agriculture, mining and huilding means a larger use of the Implements of production.  The products of several Canadian  teel or implement manufacturers are known to he second te none in Argentina, and they should he equally well known in Peru. However, the Canadian manufacturer may find it necessary to sell at cost in Peru until hoth his organisation and products become known in the republic. The industrial development of Peru is slowly taking place and there is an Increased demand for all forms of machinery - agricultural, mining ant manufacturing. Together the import requirements for Peru will reach $18,000,000 annually, the United States supplying 45*, Oreat Britain 40* and Germany 10*. There is a good demand for many lines of agricultural and mining equipment similar to that manufactured in Canada. Tail demand ia increasing and Canadian concerns should attempt to secure a portion of the sales going to that market. The machinery market of Peru is one well worth studying, hut one in ahloh a foothold is net easily obtained. Diligent cultivation of the market and a patience for returns will be necessary for success in Peru.  * 214 -  The lumber and paper markets of Peru are important* asportation* annually being around $6,000,000. Of this figure the United States supplies 903t and Canada 3/t. The Canadian 1* in as good a position to export as is the American but so neglect this market* If the Canadian exporter would interest himself theme seems to be little reason why Canadian sales should not expand rapidly. Although the above is only a very hurried and Oasual survey of market possibilities la Peru it might serve as an introduction of the market to Canadian manufacturers. A great deal of interesting mat* •rial concerning the market appeared in the Canadian "Commeroial Intelligent Journal,- Humbars 1160-1168, April 24, 112$ • June 1*. 1926. A perusal of this source may prove profitable to any interested masuxaeturer*  «•  • 215 *  Bit Republic ol taruguay la a email country located on the Atlaatio Ocean just north of the River Plate, The total area ol tfce country U onJy 7*, 17* ««.ttere miles, ehioh makes i t the smallest of tho South American Republics* The population is placed officially at l t i 3 * , K 7 , mostly Spanish, and ol a larfe per capita buying power* being next to Argentina in this respect. llrufuay i s priaarily a pastoral country and l i t t l e attention i i paid to agriculture. Little acre than \% ol «ie country's area if under cultivation and only 1% ol the ocuntryU population i s ongagod i s agriculture.  However, the agricultural industry is receiving much  attention at tho present tine, the increased activity in this direction shewing itself in the growing laportations of agricultural maehinery, and In the decline in grain and cereal imports which have heretofore boon heavy.  Wheat, com, oats, linseed, barley and rye are the  principal crops and are now produced ia sufficient quantities to meet the needs of the country* She preponderance ol the oattio-raiaing industry lc seen l a a study ol tho export statistics which show that from M to %%% ol tho exports ol Uruguay emanate from the stock-raising industry* 3%o principal exports arc meata, hides, neat extracts, W00l# animal fats, and a great variety Of other animal products and by-products* Mineral resources are unimportant in Uruguay unless one considers the marble and eteno quarries under this heading* Shore are » large number ol minerals and metals to be found in tho country but neat  - 216 -  has ye* been produced in commercial quantities  In absence of  these resources IfcTiguay mast continue to import her requirements for thia flats of goods. The manufacturing industry in Uruguay i» praetieally negligible except in the asking of shoes* matches, sugar and cement, Outside of these commodities all lines of manufactured goods are imported and resolve a ready sals. Oanadian sales In this market are »X no moans unsatisfactory end Oanadian mads goons are veil liked.  [Fiscal Tears)  Calendar "Bears)  tnui  22,072 ,000 ,000 ,000 21*200,F ooo 02,224,,000 S»,OOWi ,000 107,022 ,000  1  IffJI  WW  1928 198* 1124 1122  1  f 0»*VOF |  w9W"SjJrjSwV ;  OBPFew**  '  WIT  -  (first 9 months)  100,638 018,002 181,291 286,010 400,868 •89,206 1,910,869 2,626,690  IhmcMuT %perts 1919 1921 3922 1922 1924 1926 2921  liar  1  70*099,000 48,248,000 •1,800,000 79,084,000 87,894,000 98,921,000 102,104,000  (first 9 months}  180,648 466,106 47,047 210,160 174,876 £28,427 89,660 60,263  the total foreign trade of Uruguay has grown sinss the war being roughly half *s groat wain as the pro-war tetal Of 1919. The relative growth in imports, however, has seen greater than that la exports. Oanadlaa laport* from Srujuay have fallen oil lately ** that »  • 217 • the figure lor 1926 and 1927 i s insignificant.  W0ol and hides  account for the total figures nearly every year, Canadian export! to Uruguay, on the other hand, have Increased enormously since the war. From an average pre-war figure of $180,000 they have Jumped to $1,910,269 for the fiscal year 1926 and already $2,336,596 for the first nine months of the fiscal year 1927, Our increase since the mar has been indeed phenomenal, the figure for 1926 placing Uruguay third in the l i s t of our South Amerloan customers. Although not sufficiently high to plate Uruguay in the l i s t of the thirty leading countries oonsming Canadian products in 1926, the figure for the first nine months of fee fiscal year 1927 shows Uruguay in twenty-fourth position. At the same time wo rank ninth in the l i s t of those countries supplying Uruguay with i t s needs. For the eel endar year 1926 the participation in the Uruguayan Import trade was distributed as fellows. United States 26.3^j Great Britain 17.72J Germany \1%% Argentina 9.2*; Italy 6%; France 5.8*; Brazil 6.62; Belgiws S*f£t and Canada approximately Z% for that eelendar year. Canadian commodity experts te Uruguay arc:* 4926 J&§ Sugar $ 898,920 * »°6,98S $ Rubber boots and shoos 46,557 81,892 Rubber Tires 118.80S 226,294 Farm machinery 92,882 124,121 Automobiles and pmrts 868,767 620,924 miscellaneous. 84,996 81,288 $ 889,806  $ 1,918,269  $  mi 1,858,766 107,981 168,281 118,845 240,809 78,202 2,596,896  One of the peculiar features of the Uruguayan market has boon the he**/ Importation of sugar. Canadian participation in this item  - 218 •  began ainee the war and now aecounts lor over 80% of our total •xports to Uruguay. Canada seems to bo rapidly taking tho market away from the Americans, who have heretofore supplied about SO* of Uruguay** needs. Other foodstuff imports are olive oil, yerba mate, rioe and oof fee, none of which will interest Canadian exporters. Uruguay is becoming a good market for iron and steel product* and hardware of all kinds. A growing building industry, greater agricultural activities, and an iutsrest In read building ere factor* favoring an increase in iaports of these materials. Added to that let the possibility ef domestic manufacturing expansion which w l U eall for gremter supplies ef materiale needed in such a development.  Impertat-  iose of structural Iron and steel are heavy,but preetieelly all comes from (erect Britain, Belgium and the United States. There li a possible market for Canadian shapes if prices earn be made competitive. Other Important items in which Canadian participation should be greater are, wire of all kinds, pipe* and fittings, sheet metal and lead* Importations of machinery and Implement* ere heavy.  Imports  of agricultural machinery and implements have kept pace with the agricultural expansion of the country and the demand is bound to increase as that expansion is extended. The United States is the chief supplier of agricultural implements, more theft 50% of all imports coming from there* Qreat Britain rank* second and Canada third. The demand for industrial machinery is increasing and Canadian firms should share in this increase. British goods lead, with Germans second and Americans third, Canadian tale* of automobiles should be larger. Compared with our sales to ether South Amerlcen Republics and in comparison with the importance of the market, e«r sale* to Uruguay are very lew*  - ait -  The possibility of Canadian salts of textiles la not wery good.  Competition la extremely keen and Canadian f l r a i will have  difficulty In moating fluropean prlooa.  The Uruguayan importation of  lumber and lumber produota la inoreaalng.  Plna produsto from the United  States predominate wlih Argentinian and Brasilian produota aooond ead third*  Canada oeuld ahlp mora lumbar to this market than we do, aa  our oalea today art aogllglbla.  sruguay haa a domeatio paper prodaoUon  Of tho ehoapor gradoa to moot all tha neoda of the market.  Better  i r i t l a g and bond papers must bo imported and M soon aa Canada oan •toot Saaalinavian prlooa thla ahoold prove an excellent market for Canadian paper produota* Uruguay of faro a growing market for tho consumption of rubber boota and shoes, t i r e s , tubes, and other manufaaturea.  Canadian  aaloa are largo in thia market and should inoroaao with tho ineroaood domand for rubber goo da new being f o l t there. In oonoluaion i t might bo aald that Uruguay requlrea a grout variety of goods wfaLoh oan wall bo aupplied by Canada, and tho future development of tho oountry as a market for Canadian produota depends almost entirely on the ears that la exeroloed in supplying tho host possible goods on tho moat liberal tones oonaiotent with sound marohaadV laing.  furthermore, Canadian firms w i l l find that Canadian goods are  popular in the markets of Uruguay, but that thia popularity oan bo greatly increased i f Canadian dealers will bay more th-uguayan produota. Tho Canadian maaufaoturer lntereated l a Uruguay will ftad Trade Information Bulletin So«40* t h o bragoayaa marmot" of groat solas t o him as i t w i l l answer tho majority of gasstioao that he aoodt to kaow eoaesralmg tho market-  • IM •  rantsutla it tht nost northerly of tht South aatrlaan t ^ b U o i and thtrafora tht nsaraat to Canada. Ita aroa la 1*4,000 aquara ailta ulth a population of I,T50(000.  Tha purahaalng pauur of * t inhabitant  la law but la Yaatly auptrior to that of tht attract Otlaabian. Steady progrtit la balnc nalntaintd la tht country and trtry laaraaaa la tht purahaalng ptvar af 1ho inhahltanta mtans grtattr poaaibUitlaa for tht aalo of Canadian food* thara. Tht Vaaaaualan marktt la that of as agricultural ttuuUy la vhlaa tha laparta art mada op afetoat tntlrtly of aanufaatartd artltlaa and tha axparta aanaiat of afrlamltaral praduata and raw natarlala, IK thla lnatanaa ehltfly aaffaa, oaaao, hidaa, patralaun and cold. Gaffat la tht ohitf oxport of tht aountry, bringing about $21,000,000 annually.  It la tha only Yanaiualan teunodity txporttd tt Canada at all*  Thia aaffta la of a auptriar quality and hrlnga a vary high priaa, aapaalally la Burtpt, uhart aunt af It la oarfctttd. Yaaataaia, hovarar, la nat a tna-orop oountry Ilka at many of 1ft• South Aatrlaan rupubllaa. Ihoufh aaf foo la tha ItadUc arap aaaat tsparta art alat vary alaju Othtr Important acrloultural produata art augar, aattau, ahlalt and laaaauta. Tha prodaatloa of agricultural produata U a t l l l aarrlad aa rathtr prladtlualr aad aa mart aodtra aothoda art adtpttd tht aarfctt far agritultural fcaplaaaata aad tool* ahoald aa aaod.  - 221 -  Stttnd la importance to agriculture is tat mining industry. Rateat rasults show that Ventsuela it eat of tat rlchtst oil oouatriet la tat world, and already petroleum hat beaome a largt Item la Vtntiualan exports. Importations of oilwtll machinery and tquipment art comparatively heavy and may be expected to increase for somt tint yet.  Gold it another Important Venezuelan export.  Owing to tht  dlvtrsity of tht products and exports of Venezuela tat market it aot advtrstly affected by tat dtollne la the price of any one oormoodlty. Manufacturing Is aot highly developed in Venezuela, though tht toaatruotloa of totton mlllt, sugar mills, shot faotoritt, tt#. shoes a sttady Increase each ytar»  While tht Increase la factories and  in Industrial development may curtail to a ctrtaia extent tat Venezuelan market for manufatturtd articles, It increases our market there for machinery and raw materials. Tat lmprovemeat la tht general purohasing power of tht public at a result of increased development also mtant an inortased demand for foreign goods. Tht following statistics show Hit trtnd of VentstueIan tradt and Canadian participation in It:  faroorlff teaaJtoia (Fiscal Tears)  Calendar tears J  1918 1930 1981 if*! 1988 1994 1989 19»t JJJJ  8  18,080,000 87.880,000 18,988,000 18,818,000 89,800,000 41*498.00© • * *  I  itirat  9 mtaths)  88,898 •0J.00T 878,841 818,499 JJT.On m>™ 1,088,888 1,488,888 1,770,848  - £21 -  M13 1920 1921 1922 1922 1924 1928 1922 192T  $ 29,494,000 31,081,000 22,251,000 28,319,000 20,029,000 41,027,000  onaWap a ••JM9  899,240 481,867 294,908  (flrat 9 aontha)  170,889 178,494 188,781 144,807  Tha total Vanasuolan forolcn trado la lnoraaalac • lowly, bat nainly on tho oida of iaporta. Export* art only allghtly abowa 1ho nr*-war flguraa whUa iaptrta ara mora than doanlo. DM aarkoa iaoroaaa la laporta alnea 1912 without a oorroapondlng lnoroaaa in oxports la aooountad for by tho potroloun dowalopaonto la tho aaraaalba a l l flolda and tho aoneaquant largo iiaporta of oll-woll anahlnary. It la oxpootod that tho austoaary faworubla balaaoo of Vaaamalaa trado will ho aoon roatorod whan tho oil flolda ara broaght lata fall produotloa* Of far groator lntaraat, howowar, la tho atunga la Canadian partlolpatlon la tho Import roquiramanta of Vanaiaola. Boforo tho oar thoy varo aogUgiblo amounting to aoao 178,000 or about 0.9*.  Today oar  assort flgoro ataada owor 81,800,000 (with oxpootatlona that tho final flguro for 1927 will bo owor 22,000,000) whloh aanatltatoa roughly 8$ of total Vonoaaalan import*. Thia lo tho boat ahowing that Canada aakaa la any marxot of South Aaorloa, and plaooa as ilxth la tho Hat of aoaatrloa supplying foaaanola with ita aoodo. Tha Onltod Statoa aappUaa 82*, <a-aat Brltala Hi; Oornaay 12*t rruaaa a*j and Canada 3*. Ala flguro plaooo Vonotaol* fourth la lapartanoo la South Aaarloa aa a ouatoawr of OanaaVa, dlraotly bahlnd Dragaay aad ahaad of Oailo. * Oroat  - 223 -  Britain oontrols the a*rk«t for oettoas and textllss, quality hardware, and agrioultural laplements. Oomany supplies the Mst of the oheaper hardware linoo and toolo, teye, eleetrieal eoulpMnt and •ilUaery.  Tho United States ranks first la furnlshlnc aU other  naods except wheat and floor, both of vhlah oro oontroUod by Oanadlaa shippers. 9 M ealef Canadian ooanodity experts to Vewsuela arot-  iui  am  »Uw $ 811,064 lataea, eanned 21,864 fc»wr tires 1,224 Gotten duel 41*564 Aatwebllss and parts 7T,840 sUeMllaneoM s8,9SB —  —  $ 1,001,181  $  ^  —  mi  t i l ,411 80,048 40,121 48,111 SSI ,240 41,010 —  —  —  $ 1,401,211  $  »  —  §22,804 81.T22 841,608 1,041 411,881 111,101 —  •  •  | l,T1O,640  Ihree itoas lOBjil'Ul tho nmjor pert of OaoadUn shlpmente to fweswla.  They sro flow, eutOMbilss a«d tiro*. Canada  MOBS  to hate permanently eaptured ttte Yewooelen floor tradi, tho flforo for 1118 eomprisinx nearly BOX of all flow iaports. In tho othar WO items Canadian partlsipation i s Tory substantial, aMuntlnf at tlaos to bottor than 28* of total imports of those soaefiUtles. the eenf ecUcnery trade la TeMswla lo a large OM Mounting to orer 11000,000 a year, tO* tf those roojalroMats are enrolled by tho United Statss, howetw, Canadian seda bioonito and other ooafeeUoaory lines oonld wdoabtedly oosnote elm Moriean if their oale were oapported by persistent advertising. lw*wela offers a seed market f w butter bat Canadian ilstrjaisa haw net availed thswslws of tho •WW Iwrt tl so in this field, there lo ne nmrhet at a l l fw ohsow, OWOmssfl sdlh, lard, or oaaaod fish or Mats.  - 224 -  The doaand for modern agricultural implements ii not large at present bat should increase with th* development of the country. H o w e w , fenosuela if auoh further ahoad than the neighboring ropmblio Of Colorable. Corn io tbo only cereal erep grown to any extent and so too doaand for agricultural aaohinory !• limitod to such artieloi so ploughs, harrows, cultivators, shellers and grinders. Many of tboso iapleaentt Canada is la * position to supply*  Thar, is no doaand for  hartrostlni machinery as wheat, barloy and ryo aro not suceeesfully ^sJS , ur^*^Pua  Ths importations of hoary industrial aaohinory for mining sad roedmekine purposos has boon largo but Canada doos not sharo in this trade,  venesuela's laportatioai of lumber aro saall and unlaportant.  Ho asrkot exists for Canadian woods. The daaand for paper products i» also vory saall* What l i t t l o daaand thsro io i s for tho cheapest, SO Canadian mills aro anablo to ooapoto with German and Soandinartan sources. Thoro i s a vory largo market in Vonetaola for textiles, bat so keen is tho oompotition for this trado that i t io doubtful if Canadian manufaoturors Oan ewer faoo Buropoan competition and prioos. Thoro is no market in VenesueU for leather goods. The highest of easterns tariffs ere imposed on aanufaotured leather goods in order to eneeurege doaestie leather industries* This polioy seaae to hawo beau Tory sueeessful as excellent Venesuelan shoes, bags, belte, eto* oea be purohased at prises ao higher than Canadian. Baeopt for automobile tiros Yeaesuola is not a market for rubber goods, the climate la general beiag  *  - 225 -  tee hot for enoh goodo. Ai before mentioned Canadian participation In the tire trade la very satisfactory amounting to roughly 29% el that of the Halted States, The market lor automobiles if expanding end Canadian sales are satisfactory, numbering o*er 1,000 In 1920 and with the expectation of close to 1,200 la 1927.  *  BIBLIOGRAPHY  1  Aughinbaugh, W.F,  "Soiling Latin America" Snail, Maynard Company.  2  Collins, J.H.  "Straight Business in South America" Apple ton and Company, How York.  i  Cooper, O.J.  "Foreign Trade, Markets and Methods" Applet on and Company, Hew Tork.  4  "Understanding South America" Deran Publishing Company, Hew Tork.  I  do Haas, J.A. "Foreign Trade Organisation"  •  Edwards, G.W. "International Trade Finance" Henry Belt and Company, Hew Tork. "Foreign Coocureial Credits" McQraw Hill Book Company, Row Tork. "Foreign Sxohange Explained" McMillan ana Company, Toronto.  t  Fllsinger, E.B.  m  "Exporting to Latin America" Appleton and Company, How Tork. "trading with Latin Aaerloa" Irving Rational Bank, Row Tork.  11  Henius, F.  "A.B.C. of Foreign Trade" Bebbs-Merrill Company, Indianapolis*  12  Holdsworth, J.!.  money and Banking" - chapter IS. Appleton and Company, How Tork.  19  Rough, O.B.  "Practical Exporting" The American Exporter, Publishers.  14  Kidd, H.C.  "On,foreign Trade" /  Frentioo-Hall, Inc., Row Tork.  15  Lufcee, A.W.  "Our competitors and Markets" « chapter S-10.  jf  Lltoan, 3.  "Essentials of Internationa Trade" John Siloy and Sons, Inc., Row Tork.  ZI  Pepper, C M .  "Aaerlean Foreign Trade" Oeatary Pabllehlng Oeapany, M«v York.  Preelado, A .A.  "Baportlng to the lorld"  Roienthal, U.S.  •Teeanlenl Proeednre la Bxportlng and Importing" MeOrev Rill Book Oogamy, Mow Tork.  SaTay, N.  •Prlnolplee of Foreign Trade" Ronald Prow Company, Nov Tork.  Shepherd, W.R.  "Latin America" Hoary Holt and Company, Mow Tork.  Snyder, 0.3.  •Selling la Porolia Markete" Booklet of * e Oaltod Statoo Dep't. of Goanerco*  Tedder, Q.C.  "Aaerleaa Metaodc l a rorolfa Trade" MeOrav-Hlll Book Oompaay, Hov Tork.  Terlll, A.N.  ww • ••na^ ) • w ^ w w i v o  ^Bv ^IM ' m " • • • wwa» O B a  Bottom Pnkllenlag Oompaay. "Seutk aad Oontral Aaorloan Trade Condition*" Bold, Meade, PublUhere, Hov Tork. Belfe, A.J.  "Tneery aad Praotioe of International Intoraatlonal Book Pablloalng Company.  Bya«a, *•*•  •Direot assorting" UoOrav Hill Book Company, Bow Tork. "Bzport Uereaandlolag" MeOrev Rill Book Oompaay, Boo Tork.  t  B.V.  "Oeeaa Skipping" Proatloo-Rall, Iao. Hov Tort.  Faalleations of tho Uaitod States Government. a* k. 0.  •Oemvmree Roporto" - veekly Mlooollaaootti Sorlot Be.SS 'Bxport Trade fmggeetleas' Trade laforaatloa Ballotlao Bo.SBO "Saippiag Samples aad Advertising aattor to Latla Amariea*" Bo.BTd "Market* of Sonthera Chile."  - Ill  He. toe HI  Me Ml SB1  tea  »t  tee tee  Hi  tea  SM 403 11  "Maxiao as a Market for Unitad Statea Ooode." "Caribbean Marietta for United States Ooodo" II OolonMa. "Caribbean Market* for United Statea Oooda" i n Cuba. "Brasll, An Beonouie Rerlew by Statea." "Markets of Northern Chile." "Caribbean Markota for United State* Oeode" IT feet Indiea. "Caribbean Markete for United Statea Coeds" V TeneteeXa. •The Markete of Beliria." "Markete far Agrlaultural Laplonenta in Argentine" •Selling in Iresil." "Machinery Markets of Braail." < "Argentine Markete for United Statea Oooda." t h e Urug«ny»n Market."  Canadian Oovernment Publieationa. a. "OonaereUl Intelligence Journal" * weekly. b. "The Rcpeblie of Chile." d. "Market* of Jamaica and the KepabUeo of Colonel*, Tcnoiuola and Panenm." d. "Peeking for Overaces Markete." e. "Repreeentation in British end Foreign Markete."  IB  Publication* of the Pen-American Union.  H  Yenreecks. a- Canadian Yearbook, b. Commerce Tearbook, e. Stateeman'e Yearbook. Uiaeellaneou* eouroee for Chapter m i .  14  a. "Menetery Times." b. "Chriatia* Seienee Meniter" • All Canada Supplement April 1*. D i e .  »  


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