The Democratic banner. (Mt. Vernon, Ohio) 1898-192?, 1917-09-07
German Austrian Trade Gap
Being Filled By
America
MUST EXTEND CREDIT
TO KEEP BUSINESS
Sunny Country Is Virgin Soil
Commercially; Natives
Kind-Hcarted'

lliy ASSoClatcd Press TO The Banncrl
ROME, Sept. 5-"The gap left by
the withdrawal of German and Aus.
trian merchants from Italy is gradu-
ally being filled by American pro.
ducts" said II. p. Benton, an Ameri-
can who has for many years been
manager of one of Italy's largest de.
partmcnt stores, "but if Americans
wish to hold this trade they must
get around to extending credits and
catering to the trade by making small.
lot sales.
81 do not mean that Americans
should do business like the Germans,
because they can't. German business
was often losing proposition. The
loss was made up in many cases by
direct subsidies of twenty-five percent.
to firms pushing German goods. |
know personally of big firm in Milan
that handled German hosiery. BY
having this line of goods manufactur-
cd in Germany in its own shops in
stead of in Italy, it received this sub.
sidy and therefore undersold not on
ly Italian but English competitors.
80 you see, the vaunted German
business methods were not really
business at all | think this subsidy
arrangement must explain why the
Germans turned out such a lot of poor
grade goods. His big object was to
make sales under all circumstances.
The more sales the more subsidy
Now, at present America is the
only country which can supply many
of the articles needed here. There
fore, if her wholesalers demand cash
at New York, the Italians must pay
or go without the goods. But this sys-
TEN does not tend to build up steady
trade. So soon as these merchants
get the opportunity, they will buy in
France or England, or else make up
the goods themselves, as they are al
ready beginning to do. Also, it must
be remembered that there are no large
combinations of merchants here, that
it is a country of small stores, and
therefore wholesalers must be willing
to sell in small lots. In reply to in.
quiriCS, an American firm will send
over handsome set of literature and
ask for an order of thousands of the
article in question, when the buyer
has only dozens in mind.
II think the Americans who have
looked over the field realize that Italy
is really virgin soil commercially, and
offers big opportunities for the es-
tablishmcnt of manufacturing plants
backed by foreign capital and work.
ed by Italian labor. From this point
OF view, a thorough understanding
of the Italian mentality is necessary
and possibly Il long campaign of edu-
cation to prove to the workman that
the employers interests are his in
forests. At bottom, the Italians are
good hearted, kindly people and il you
get their good will your way is much
easier. One must be cautious in max
ing contracts, and not take their lit
tie tricks too seriously
From a retail point of view, bust
ness is now very good The majority
of my sales are made to the richer
Italians, They are willing to pay very
high prices for what they want, and
they particularly want foreign made
goods. For this reason American
made goods so well, American shoes
have already secured a fine market
here. ! think also that the American
fye-and.ten cent specially stores
would do well. Other American spec
ialties, socks, underclothes, ready
made suits and overcoats may In
time Secure a wide market, though at
present the custom is to wear tailor
made clothes