Evening star., 1915-08-15

understand why this should be so. He
knows the United States is not at war
and it's goods do not have to pass
through any war zone to reach South
America. Therefore, he draws the con-
clusion that the American manufac-
turer. occupying temporarily a position
of monopoly. is trying to charge all the
market will bear. The South American
customer is thus building, up a resent
ment that will probably be felt by the
Yankee producer when the war is over
OF course, this resentment is usually
not justified by the facts. yet it is an
element which will have to be consid-
cred in the future.
If Americans gain a predominant po-
sition in the trade of South America it
will only be after a costly struggle.
In Bernavides' words, the American dol
lars must be first invested in the trade
campaign before the pounds profit can
be won. The war has had a profound
effect on the trade situation. but not
such an effect as to make the trade
much easier to get. It's chief service
toward the southern continent, and the
result may eventually be the conquest
of the market 1t will depend upon
Americans themselves. for no one
doubts that the American business gen.
ius will succeed in whatever it under
takes.
1t may be that the present interest
in Latin American markets is but tenn
porary, business men being for the mo-
ment fascinated by the suggestion that
a great deal of their business. Later
1t may develop that Americans do not
want. to extend their South American
trade because of the sufficiency of
business opportunities at home and an
unwillingness to adapt themselves to
the business customs of other lands.
The future only can show US the
truth in this regard.
A number of far-sighted economists,
however, believe that the United States
has reached turning point in the evo-
luton of its business, when it will be
necessary for the continuation of pros
perity to seek. new markets. South
America for obvious reasons offers the
exploitation, and there are indications
that Americans. are now ready to make
scientific study of the need of that
market and go after business in the
only way In which 1t can possibly be
wrested from Europeans who now con-
troll it.
The American manufacturer who
plans the extension of his trade to
South America should rely upon no
second hand information about the
project on which he is embarking, or
else he is liable to come to grief, lose
much money and then quit in disgust
He should go to study the market him
self, or send the next best man he can
spare from his establishment.
1t may be after looking over the con-
ditions he will find that it is impos-
sible for him to do business at all with
his line in South Americaa. Certainly
he will find. If he deals in a competi-
tive article, that the conditions are
hard. The cards will appear to be
stacked against him. He will contin-
ualIy feel the blocking efforts of his
British, German, French and other Eu-
ropean competitors.
He will lack, their credit and other
business information He will be un-
able to offer the easy terms afforded
by the established European houses.
Ocean freight rates are usually against
him, and he may be the victim Of the
rebating evil. Moreover. when he can
meet European prices and succeed in
equalizing other conditions, he will
often find the buyer preferring the Eu-
ropean house because of more favor