Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-09-25
BRAZIL An IM|TAT0R
Is Copying the United
States.
A PROTECTIVE TARIFF
is TRYING TO BUILD UP HER IN
DUSTRIES.
Advice to Exporters to Go There and
-. Produce the Goods on
the Spot.

| Some time ago Special Agent Hutchinson,
who Is writing to the Department Of Com
merce and Labor on industrial conditions
| in Brazil, took the advocates of ship SUBJ
sides by the ears by bluntly declaring that
such suggestions as means Of building up
American shipping merely caused ridicule in
| the foreign commercial centers he was
visiting. He Joined with these critics of
the ship subsidy idea and advised Ameri-
can manufacturers to study the foreign
| market and conform to it's demands, and
| then all the shipping facilities their trade
warrants would be provided as matter
| of course. and on a purely investment basis
without being bolstered up by government
subsidies.
| Now Mr. Hutchinson is out in another in
| teresting letter, in which he tells American
protectionists and manufacturers that Bra
zil is citing the success attending the build
| ing up of the industries of America through
| the influence of a protective tariff, and that
the Brazilian trade is slipping away from
all foreign countries, including America In
this dilemma he does not suggest any way
In which American manufacturers may hope
to hold on to that trade, but he coldly adj
vises them to turn their attention to the
building up of BraZils manufactures by
shipping the best American machinery for
the factories of that country and to look
toward going there themselves not only
10 manufacture machinery Lfe BRAZIL
ians. but to open factories in Brazil and
so escape the heavy protective duties that
Brazil places upon imports.
Make the Goods on the Spot.
In short. Mr.. Hutchinson tells the AmerI-
can manufacturer he may just as well be
prompt in seeing the way the wind is
blowing in Brazil and conform to condi-
tions that exist there. He tells him that
that is what others are doing.
The leaders of thought and politics in
the country are frankly and consistently
protectionists, Mr. Hutchinson says;
There are many things now imported
from abroad which could easily and cheap
ly be made at home, and the people quote
freely the example of the United States
in favor Of their determination to develop
their production.
There can be no question that the very
high tariff duties which American and
European producers complain of as an OBJ
stacle to their export trade to Brazil will
continue in force or be increased, SO far
as they apply to goods which there Is any
reasonable possibility Of producing In Bra
zil itself. These high protective duties
may, however, be turned to the advantage
of our people, instead of remaining him
drance to development, If our capitalists
will take shelter behind this very tariff
wall. Introduce American methods and ma
chinery, and make the goods for Brazilian
consumption here in Brazil itself"
Mr.. Hutchinson says the obvious thing
for foreigners to do is to stop sending
Goals to Newcastle and to go into Brazil
with improved machinery and processes
and produce the goods on the spot,
If Americans Don't, Others Will.
1.-THE building up of these local industries
will, 1t must be admitted, be detrimental to
the interests of American exporters of the
goods in question, but at worst it will only
be the Fastening of process which has al
ready begun and is certain to continue. A
country with the natural resources of Bra
zil, animated by determination to build
up through protection and other means all
industries which the nature of the countrys
raw materials make possible is certain in
time to cease to import many articles for
which it now furnishes market.
1T is well to recognize this fact frankly
and to take steps to reap whatever benefit
may be derived from the changing condi-
tions. If Americans do not step in and take
a hand in the development, others will, and
the indirect advantage flowing from the
control of activities here will be lost to us.
The new industries will reduce the demand
for certain American products, but If they
are either directly or indirectly controlled
by Americans or fostered by them they will
create a more valuable demand for other
American products, such as machinery and
other outfit while the indirect effects of
famiiiarizing the people with American
methods and enterprise will be incalculable.
1T must be remembered, too, that the
building UP of local industries does not nee
6SSdTity mean the ctSSdtlOH VI QGINdnu IoE
imported goods even of the same lines as
those produced by the native mills. A new
country like this must build up its manu-
features from the bottom, SO to speak. The
first steps will be with the coarser and
cheaper grades. while better grades will
continue to come from abroad
This Is result of inferior technical skill
on the part of the workmen, poorer quality
of the raw material, or the necessity which
a new industry feels for broad market
such as can only be reached by selling 20
the great mass of the poorer portions OF
the population. In any case, the growth of
the local industries cannot be very rapid
process. and the supplanting of foreign
goods must advance slowly. Meantime a
large market remains available and may be
well worth striving for. There are also
many lines of goods which Brazil can never
produce herself, and the market for these
remains untouched by the development of
manufactures which has begun here