The star and Newark advertiser., 1908-03-13
COMMERCE IN IoUIoUE.
General Conditions for Selling Goods in
Northern Chile.

Consul Rea Hanna writes from lduique.
regarding the outlook for the increase OF
American trade In Northern Chile, as fol-
lows:
THE present seems TO be an opportune
time for the successful Introduction of
American goods Agents of American ex-
porting houses report that with very little
effort they can place satisfactory orders,
providing that terms similar TO those
offered by British and German firms are
given.
.'The American manufacturers have been
able to dispose of their wares In the states,
and consequently have made very little
effort to obtain orders from this region.
In fact, ] was told by local American
merchant that one of the large houses in
New York told him that they would nor
take the trouble To fill his orders, as they
could dispose OF their products at home.
This attitude may lie all right for the pres
ent, but with the opening OF the Panama
Canal the west 5 coast @ OF SOUTH Ameflea nefi,,
prise, and II an early start Is not made TO
actively enter this market 1t may soon bs
too late. The merchants here VIII have es-
tabished European connections of long
standing; and habit has strong influence
on the placing of orders, particularly when
relations have been satisfactory.
The British, German and French firms
pay a great deal of attention to export
packing and their goods seldom arrive In
poor condition. The subject of packing Is
at present receiving much more attention
than formerly from American shippers II
is very important, as there is hardly a
harbor on this coast where freight does not
have to be handled in lighters and quite
often In rough water.
THE local Importers are accustomed to
obtaining credit from 80 days to . months
after the receipt of Goods This would
seem to be condition OF affairs which
could be regulate. by personal confer
cnce.
"a representative not thoroughly famiI-
lar with the Spanish language can do
little here, aud he must be a capable man
TO be able to adapt himself to local con-
ditions.
Zone of the most serious drawbacks to
American trade in this country is the ab-
sence of banks clearing irectly with New
York. As an example, when the. buying
value of Il Chilean paper peso, on Lopdon,
was II pence or % cents American gold,
an additional 11a pence was added for buy
ing exchange on New York, making the
value 20 cents, or nearly IA per cent. ad-
ditionaI. When asked the reason for such
a difference. the explanation was that they
had to clear through London. This IS one
OF the worst instances | have heard but
merchants are continually required to pay
eXorbtant rates on New York over the
London quotations.
THE chief product of this district Is
nitrate of soda. As many millions nf dol
lars worth of this is shipped to toe United
states. it certainly would appear that
there is good chance for American i'm
ports into Chile TO balance the enormous
debit which is thus created.
"Of course local conditions cannot be
changed SO ms to be more advantageous
TO American trade without intelligent and
concerted effort on the part of American
exporters, but it is certain that just as
soon MS proper measures are taken the
market will be found I'm a receptive condi-
tion for American merchandise