The San Francisco call., 1906-11-21
How Americans May Extend Trade
in Foreign Countries

naturally while they may represent
any American concern. they are more
interested in British or German than in
American products.
AS between local agencies and manu-
facturers' agents. so-called, believe
the latter plan is the more successful
and more satisfactory in the long run
None of them is as successful as direct
representation by a man acquainted
with the local language and the trade
he represents The most successful
trade abroad by Americans as almost
without exception been established by
having direct representative in each
great trade center OF the country COW
cred. like Rio de Janeiro in Brazil
Buenos Ayres in Argentine, Shang-
hal and Hongkong in China, Havana in
Cuba. and the like. with local agencies
generally held by natives OF the cOun-
tries covered in the smaller centers
working under the direction and con-
troll Of the representative in the large
center first referred to- This Is the
plan followed by the great American
corporations doing business abroad.
and 1t is the most reasonable, economi-
cal and effective plan.
Manufacturers in the United States.
in working for the home market. ind
out what is required and then manu-
facture for it 1t IS unreasonable for
American manufacturers to follow any
other plan with respect to foreign
trade, and yet ii has come to be un-
derstood in some lines that all that can
be expected from the United States is
surplus Of goods which were manu-
factured originally for American con-
sumption. To sell goods abroad the
goods must be suited to the needs OF
consumers abroad
They must be suitable IN nature.
quality. price and condition. the sls-
ment OF climate, racial traditions, So
cial environment and industrial growth
must be considered. Naturally, where
goods of certain class have been sold
in country for generations. II will be
the part Of common sense to follow the
time-honored demands Of the country.
suiting the goods manufactured to the
brands which have been on the mar
ket for years. furnishing like goods for
less money or better goods for the
same money, II IL is possible to do so.
1t may be possible to introduce novel
ties and establish a demand for an
entirely new line Of goods, but as A
rule it goes without saying that an
established line Of trade is safer and
more satisfactory. Such line OF trade
may be more difficult to reach, but
when once reached 1t will be more
easily retained
| The matter Of packing Is Just as i'm
/ been in the past, although so much may
not be said about II at the present
| time. American shippers have i'm
proved very much in this line in the
/ past two or three years. The matter
I OF seeing that goods reach the con-
/ signee in proper condition must not be
lost sight Of 1t Is one OF the secrets
not only of securing but especially OF
keeping a trade once established.
/ One Of the most important elements
/ in the entire trade situation affecting
American manufacturers abroad is the
turers have been in the habit of insist
ing upon money in New York or some
/ other American cities before goods are
shipped European competitors. on the
/ other hand, have been giving long cred
its. I do not see how American manu-.
facturers can hold to their present
credit methods and succeed abroad.
They have been handicapped in Brazil.
as elsewhere, By the lack OF American
/ banks and the proper means OF eStab-
/ 1ishing credits for foreign firms There
I are indications that one OF the great
[ American commercial agencies will es-
| tabIish branch in Rio de Janeiro
! within a short time, where much OF
/ the present difficulty IN this line will
be obviated. American houses. how
ever, must loosen up some OF their
credit rules for foreign trade. They
must expect TO meet foreign competi-
tion. Brazilian dealers are accustomed
| to long credits, and Il VIII be a long
time before cash transactions. even az
a marked discount. viii appeal 20 them.