Ashtabula telegraph. (Ashtabula, Ohio) 1874-1880, 1879-09-26
American Manufactures IN Bra.
ziI


Brazil by Scribner's Magazine, to write u
the series of articles now appearing in tina
magazine, made special investigation int
the prospects of American trade with tha
country. In the October number, in pa
per on Rio, Mr.. Smith gives the results o
his study Of the subject, from which VI
quote the following:
If American manufacturers wish K
push their wares in Brazil, they vii
do well to take a lesson from the
English houses. English manufac
turers employ resident commission
merchants at Rio, or very often they
have branch houses. Young boys
are sent out from London to be ed
ucated to the foreign business; they
enter these established houses as
clerks, readily learn Portuguese, and
become accustomed to the details of
Brazilian trade before they they take
more responsible positions. Eventu-
ally these boys become partners in
the house; they either take charge
of the Rio branch, or they return TO
England with a thorough knowl-
edge of the necessities of Brazilian
trade, so that they can adapt their
business of manufacture to it.
At present it is not probable that
our manufacturers will venture to es-
tablish branch houses in Brazil,
though it would be precisely the
wisest course; only the profits would
be little or nothing for the first year
or two, until the firm was well es-
tablished. Such branch houses have
the advantages that they save the
commission on goods, and, being di-
rectly responsible, can be trusted
even for large orders; besides they
can make their own prices suited to
the market, and they can have stock
on hand for immediate delivery
when required. / believe that such
house established, let US say, by
one of our cotton manufacturers,
would be almost certain to make its
way. But if this cannot be done, at
least the services of established COM
mission merchants may be obtained,
allowing them liberal terms, and
even certain latitude as to prices;
or if young men are sent to Brazil, it
should be with the intention of keep
ing them there on salary; they
should have time study the language,
and to study the Brazilian trade as
well Manufacturers should adapt
their goods to the Brazilian market,
and in order to do that, they should
take the judgment of men old in the
trade. For instance, the Brazilian
merchant demands a certain width
and length in cloths. American
manufactures can make them as well
as the English and French, and will
have to do it if they wish to compete
with them.
There is another very grave matter
to which it is well to call the espec-
ial attention of our manufactures.
Large quantities of cheap and spuri-
GUS goods are thrown upon the Bra
lillian market as American. The
evil Is a double one: first-class goods
are driven out of the market, and
honest manufacturers get an evil
reputation. The Brazilian retail
merchant buys these imitation goods
with a perfect knowledge of their
worthlessneSs, because he knows that
he can sell them to his own advan-
tage. | see no way but for our
manufacturers to place in Brazilian
market an inferior grade of goods,
marked as such, but which will yet
be better than the worthless foreign
things that are sold at the same price.
That would drive the limitations out,
and preserve our reputation as well.
I have heard the complaint over and
over again, "American articles are
TOO good for the Brazilian market"
An Amazonian trader, for instance,
buys English prints because he can
get them for seven cents per yard.
1t matters little to him that the
goods are half starch; they are CLOS
sy and pretty to look at, and he can
sell them to advantage to his Indian
and mulatto customers. Why should
he pay nine cents for American
prints, though he knows they are far
stronger and better? But there are
grades of American prints that can
be delivered in Para for seven cents
per yard, or even six cents, all duties
paid. Filled with starch, and
smoothed out, they would sell as
well as the English ones, if the pat
terms were we'll chosen. They would
pass for what they are-inferior
grades; and if Brazil demands these
inferior grades, there is no reason
why we should insist on selling her
higher ones; only let US have no false
pretenses.
There are a few manufactures in
Brazil, and these do not fill one-tenth
of the demand for goods; conse-
quently there is an immense import
trade, and to the original cost must
be added heavy duties as well as
freight. The question arises wheth-
er Americans could not establish
manufactures in Brazil and thus save
themselves duties. In some few in
stances they might do so with profit;
but, in general, the goods made could
not compete with foreign ones. The
cost of building and carrying on
factory of any kind would be very
great in Brazil; both from the i'm
port duties on material and the lack
of skilled labor. Foreign manufac-
lures are content with small profits,
because their, sales are large and rap
id, and they can almost always un-
dersell a Brazilian manufacturer,
whose operations must necessarily
be small and slow. There are a few
cotton factories in the country, all of
them depending for their support on
government aid. Iron foundries
have been established in most of the
coast cities, but only for irregular
work, repairing and the like. Paper
making might pay we'll, especially
if some of the native fbers could be
utilized in this way. Cotton rags
could be obtained, think, as they
are in the United States, by means
of small traders; as it is they all go to