The Washington herald., 1914-10-12
II. Opportunity and Il. Cultivation.

/ Consideration of the North American manufac-
turers opportunity in South America brings up sew
eral logical questions
! 1. Have we an opportunity?
?. If so, how great is this opportunity?
3. How is tie opportunity to be cultivated?
| G) Very likely the first question is superhuous.
Very fikely the general proposition that we have an
opportunity in the Southern continent is obvious
such least be the prevailing idea at the
present time. The Germans, the Dutch, and the
British discovered an opportunity there years ago,
which they have consistently and persistenty been
improving ever since, while we Americans have been
so busy developing our home market that we have
kept aloof; but the opportunity is still there and it
is respecter OF nations. The tremendous area of
the Continent in a single one of whose thirteen
eountries-and that not the largest-might be con-
tanned Germany, France, Great Britain Italy, and
Switzerland, with room for Germany and Great Br-
tain again; continent populated less than half
as densey as North America, makes it evident that
an enormous consumption of manufactured articles
must take place before South Americas development
will have progressed to any extent.
We have always known these things more or less
vaguely, but the European war has forced them on
our attention very definitely and has made it possible
to make profit, instead of loss, while building a
trade. Demand must be supplied. certain amount
manufacturers, in the shape of orders, even If we
were indifferent to export trade The longer the war
lasts the longer the fruit will continue to fall even
if we do not see fit to get busy and climb the tree
the Latn-American is loath to change his business
relations once they established. But the broad
gage manufacturer should not be satisfied with such
la happy -go-lucky influx of business. Otherwise he
would do well to avoid any permanent plant extern
Sions or other investments of capital TO for
trade which, after few years at most, will again
be keenly striven for by European interests
(2) How great is the opportunity? | would an
swer, "As great as the American nation is willing to
conceive it in plans and preparations" The mi-
tation will be at the sending the receiving end
Failure to recognize this has | think caused many
to overestimate their ability go down and do great
things in South America Why this is may be
realized by contrasting lack of preparation
with the sagacity that has been displayed in foreign
trade-buildng by other nations. The Yankee con-
sders himself born trader, but foreign traders
made, not born Germany has been making them
during the past two generations, until she has de-
veloped whole race of them. Encouraged in every
way by the imperial government these specialized
traders have methodlcay been campaigning for South
American business for nearly half a century. They
have evolved educational system, shipping syS-
TEN, and banking system, and that is Just what
must do if we are to invade South America COM
mercially.
The young German just invading business has
been taught 10 speak three languages; the young
American often cannot speak his own, and his brus-
queness CRATES against the Punctllous pohteness OF
the South. This is problem for our schools.
The Germans have worked out their shipping
methods to nicely, because they have studied them
certain destination they know whether coolies burros
or auto trucks are to transport them the last
lap of the journey and the goods packed accord
ingy. Are willing to devote this panstaking, but
proht-insuring, attention TO detail?
The attitude of the government must have an ex-
tremely important influence our success in dis
tributing through foreign ports. The Kaiser is
business man. His consular and diplomatic service
has been made to subserve and advance German in
dustries, and the subsidized merchant has been an
important factor. Even governmental pressure has
sometimes been brought to bear small manufac-
turers who on account of their smalness,
able to serve the trade efficiently and at the
time yield fair to their stockholders, causing
them combine and thus operate more economically.
| know of 40 American banks in South America.
Inasmuch as custom has fastened a system of ex-
tremely long credits the country our banks must
go with us to carry these credits
CD How is the opportunity to be cultivated? In
word, by planning by preparation. Certainly not
by going TO the South American countries IN the
spirit of adventurous traders debating busi-
ness methods, yet by using them, as in the past,
as dumping ground for overproduction. Create
and perpetuate" should be our slogan Only in this
way can we build South American business on such
solid foundation that, when the floods come and
the winds of competition blow, it will not be moved
F. S. Terry, manager National Lamp Works of the
General Electric Company, New York, in the Scientific
American.