New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1919-05-25
Easy Credits Are
Loadstone for
Mexican Trade
Merchants Below the Rio
Crande Partial to Bust
ness Methods Employed
by European Statesmen
Copyright 1919. New York Tribune Inc d.,

noted IN recent letter, their or
ganization is intact. They will sell
American goods if they can get them
until they are able to substitute Ger
man goods. So free are they from
racial antipathy that they will sell
British and French goods-if they car
get them-until German manufacture
can again be imported.
For the last five or six years some
Of US who know a bit about Latin.
America have been preaching te
American business men that never
again would they have such an oppor-
tunity to extend and solidify their ex-
ports, but quite in vain. They coulo
not get ships. They did not like long
credits. Patriotic motives gave Europe
the preference. There were a thou
sand reasons for inactivity, most oil
which when put TO the acid test were
based on the matter Of credits.
South of the Rio Grande are 100
100000 people, inhabiting countries o.
vastly greater natural wealth thar
Europe, who have been driven, in some
cases against their wish, TO the mar
kets of the United States. During I
period when billions have been lent
to Europe, the rule enforced has beer
cash with order or draft against bill
of lading, in dealing with the Latil
countries of the new world.
Ready to Step In
What will happen is this. If the
Germans fail to regain their dominan'
position it will be assumed by France
and Great Britain, who are alread,
actively exploiting Cuba and Mexico
and probably the twenty republic.
further south as we'll.
Writing in "Collier's" some month.
ago, FORMER President Restrepo, Of
Colombia, made this plea:
Have faith in us, North America
The European producers and commits
sions readily give US six and nine
months credit. North Americans dis
like to give us even three months credit
They prefer thirty days credit, an.
many give us not day. yet they give :
longer credit t. their own people. W.
do not understand why this is so
These credits have helped Europcal
commerce enormously"
10 contine the discussion Of credits
specifically to Mexico, and show tn,
Americans from the rest of the world
ton prepared for the Am erican Cham
Der of Commerce IN Mexico by Edwin
W. Sours, general manager in Mexico
for R. G. Dun & Co.
Prior to the war British exporter.
sold to large Mexican houses IN opel
account, charging Az per cent on un
paid balances. Sales to small con
Germs were as close as possible TO.
cash, drawing through bank on ship
ping documents. Inc rate IN unpal(
balances during the war has In
raised to 512 and, in some cases, to
per cent. In sales of textile machinery
IN which a large trade had been estab
lished between England and Mexico
the custom was one-third with order
one-thlrd against shipping documents
and one-third when the machinery Wa
in operation; but exceptions wer
made when competition required, an,
six to twelve months credit was al
lowed
The British system was largely fol
lowed by the French exporters, but tn,
French were more generally represent
ed by resident agents, and an enormou
trade in dry goods was carried on her,
by French firms, who maintained pur
chasing agencies in Paris. Credit wa:
very freely extended in the sales O.
wines and brandies, amounting to 81,
months or more.
The export trade of Germany had as
sumed large proportions through
different system from that employed b.
England and France. Not only wer,
agents and repre- sentatives establisne.
in Mexico, but travellers came frequent
ly, and 1t was their custom to sell bctf
to the larger houses in the more i'm
portant cities, and also to the small
trade in the interior towns. To these
buyers credit was extended freely foI
a term of six and eight months ant
trade was in hardware, both heavy an(
small toys, drugs, chemicals, leathe
and shoemakers' supplies, machinery
electrical goods, etc.
The British sold cotton and woollcl
goods, linens and laces. The French
sold silks and novelties.
Since the war the bulk Of Mexico
foreign trade has necessarily been Will
the United States, although Spain
which had chiefly exported wine
canned goods and woo denware to Mex
leo, has developed a fair sized trad,
in shoes, drygoods and rious article
made by hand.
Americans Want Cash
The United States had before tn,
war built up a trade in machinery
hardware, typewriters, shoes, papers
printing supplies and has been supply
ing temporarily practically all tn
other lines enumerated.
Mr.. Sours notes the American ten
dency to insist on cash or cash agains
shipping documents, and tells a stor,
to illustrate the situation.
ga very large order was placed TO
drygoods by one of the leading house
here, of unQuestioned credit, with al
American house. The Americans wer
requested to ship the order sight draf
for bill of lading, but refused. The,
were then asked to turn over the ship
ping papers to the buyers bankers II
New York. who happened to be one o
the best known financial institution
there. This was refused and strict casl
in hand eXacted as condition 70
shipping the goods. The order was can
celled."
AS result of such practices, Nj
Sours thinks. considerable dissatis
faction exists, and it need occasion
no surprise should the importers O
Mexico show an inclination to return
to their European connections and cur
tail as far as possible their purchase
in the United States.
The time has now come, of course
when this shift of international trad
is poSsible