The evening star and Newark advertiser. [volume] (Newark, N.J.) 1907-1908, 1908-01-16
CREDITS IN MOROCCO.
Terms on Which Europeans Conduct
Trade in the Empire.


For the information of American i'm
porters and exporters DESTROYS of enlarg-
ing their commercial relations with foreign
countries. Consul-General Hoffman Philip,
of Tangier, furnishes the following report
on the credit system in Morocco:
1.-THE question of credits is one which de-
mands the thorough consideration of the
American exporter who would find a field
for the sale of his goods In Morocco, and
the settlement of the question upon a basis
satisfactory to buyer and seller means a
solution of the many difficulties which
have prevented the development of the
trade of the United States with this en-
pire.
THE foreign trade of Morocco, approx
mating $751; 100000 per annum, is now
divided largely between the United King
dom and France, although Germany.
through its more liberal credits, is rapidly
gaining a better hold. Considering that
the United States in a fairly satisfactory
manner, completes with the world at large.
1t could equally compete with Europe for
the trade of Morocco were 1t fully ac-
quainted with the conditions controlling
that trade. The United States nov sells
garden tools TO a leading European coun-
try, and should be able to sell garden tools
TO Morocco in competition with garden
tools sold therein by that country.
n OlAN alidAg bis VI the credit system III
vogue in Morocco, covering the products
most commonly In use, may, therefore, be
or value to American manufacturers who
might be inclined to secure trade therein.
Practically all the cotton goods con-
sumed in Morocco come from England.
This trade, which reaches a figure near to
S2,oO,OO each year, Is carried in the form
OF current accounts. The purchaser pays
a certain sum down, which opens his
credit. n this Is added to by occasional
further payments, while such goods as he
may need are sent HIM. Such accounts
are balanced, as a rule, once Il year.
Many European firms reinvest receipts
from exports In Moroccan products, such
az goatskins, etc? for export TO Europe,
doubling h profits. 1t is claimed, and in
quiries lead me to believe 1t to be true,
that practically all the coastwise trade OF
Morocco Is carried on upon capital secured
through the sale of Manchester cotton
goods turned into cash, even at a loss.
almost Immediately upon receipt. and tho
capital thus secured is used during the
length of the credit to buy other lines of
goods, such. as eggs and farm produce,
which are cheap In one part of the coun-
try and expensive in another. In this way
the profit Is many times as great as could
chester goods.
Most Of the silk imported Is from
Dill OF lading. while on the manufactured
article a credit of 80 to 100 days is given.
The trade in other fabrics is divided be-
w CNh GuRldllus Il TdIlCS anu germany,
with the following credits: England, either
as current accounts or credit up to ninety
days; France, ninety days, or discount for
cash against bill of lading; Germany, six
months credit, with an additional six
months at 8 per cent. on balance unpaid,
England has gained and held for years
a practical monopoly Of the large candle
trade OF Morocco on a basis of current ae-
counts or ninety days credit.
ITALY and France supply most of. tho
flour at credit Of sixty TO ninety days, and
cash against bill of lading, respectively.
Roofing tiles come from France at a
credit of ninety days; iron beams from
Belgium at a credit of ninety to 100 days:
plaster and cement from France, Belgium
and Spain at a credit of ninety days.
General hardware according to country.
Germany, Belgium and Austria, long
credits; England, Italy and Spain, medium
credits or current accounts. Builders
hardware from England, Belgium, Ger
many and France. on a credit of ninety
days.
How France, despite it's practically cash
transactions, holds so much of the import
trade of Morocco needs explanation. Sugar,
flour n silk are the great exports of
France to Morocco. For the first ii has
been found that n better quality at less
price can be secured from France than
from any other country. For the second
the discounts offered for cash against bill
of lading make French flour the cheapest
obtainable. For the third France is the
natural exporter of silk. Liberal discounts
OF the French exporter have induced many
wealthy firms to buy for cash, and whole
sale goods in Morocco on short credits"