The sun., 1919-05-19
EXPERT OFFERS ADVICE ON
EXPORT CREDIT PROBLEMS
Banks and Associations Provide Ways and Means for
Answering American Manufacturers Natural Cues
ton, "How Do Get My Money!"
ny A. A. PRECIADo.

BY A. A. PRECIADo.
on Public Information N Chtle.
Specially ,crtttcn for the Latin American
Section Of THE SUN.
The first thing n manufacturer who
produces an article that will sell In
South America wants to know after he
In convinced that It 10 good business TO
broaden out a bit. ana after his timidity
OF wading out into the deep unknown
has been gradually removed. IL -How do
I get my moneyr'
This Is not an unusual question. Ono
cannot blame a man for wanting to
know IL an agreement for a sale in
Buenos Ayres or Lima IL just as sacred
and binding an II In in Omaha or in CAL
weston. This same question has been
asked over and over in conference halls,
in special gatherings and other places
America has been at the head OF the
programme.
You can't blame q man for asking that
question. He makes the same interroga-
ton when selling q man q bill Of goods
out West. But in this case. however, he
knows all about the machinery that will
be used to collect his money. He knows
what TO do IL the customer defaults. Al
though he may not know him person
ally he has obtained sufficient informa-
ton to Justify any sensible course he
may desire TO follow in dealing with his
customer. II the customer fails to meet
his obligation at the proper time the
manufacturer can know the reason why
within comparatively short time.
suppose new customer applies for
goods. II is q matter of small moment
TO get all the necessary credit Informal
ton regarding the new buyer. The ex.
perienced credit man knows where to
lay his hands on the required data He
goes about his work with ease. No fuss
made; no one need be stirred up, not
even the customer. So long as orders
are coming to this manufacturer from
within the borders of the country the
machinery Is working smoothly.
An Order Comes From Ecuador.
Next morning the storm breaks, how
ever. An order has come from some far
| away country in South America, let US
say Ecuador. The importer in Ecuador
has read In a reliable trade journal that
he could buy some excellent monographs
In the United States. SO he puts in an
order for a email number. and carefully
gives instructions as to packing. He
would like TO have ninety days credit
and documents against acceptance draft
The credit man 10 up in the air. He
doesn't know what documents on ac-
ceptance OF draft means. He has prob
ably never heard OF Ecuador. 1t may be
the name OF a new hair tonic. for all he
knows. The sales manager. not over
anxious to see a beautiful piece Of busi-
ness disappear before his eyes because
OF the lack OF technique In the handling
Of the order. takes up the matter with
the executive
Here's a chance to get into export
trade" he thunders.
Nothing doing" nres back the ex-
ecutive. Leave 1t alone. We don't
even know the man. We don't know his
language. We don't know where Ecua.
dor Is or what 1t Is. Is II a city or q
country 1t may be good business to All
an order for a man in Missouri or in
Idaho, but nix on shipping a valua BILE
consignment OF goods to some strange
country whose people do not speak the
same language we do. Wen just draw
the line on orders of this sort, so I'll
Just draw 1t around the U. S. A.. and
let's not jump IT.
But you can't subdue a good sales
manager. He sees possibilities OF ex.
porting to South America. and finally
after long siege. he wins over the ex-
ecutive. and the game OF doing business
with our southern neighbors is on.
The same scene has been enacted In
hundreds OF Offices of small manufactur-
ers who are anxious to develop the
South American market, but who do no,
know what to do with an order when
they get II. Many seem to think tina;
the moment one steps beyond the Dor
ders of the United States one begins to
encounter different business principles
Many seem to think that the South
American people have not as yet discov-
cred the word credit" Many seem to
think that all the crooks in the world
are concentrated in South America, and
all the honest folks in North America.
Language No Test of Honesty.
A little preliminary investigation will
scatter these rattle Drained, wild eyed
notions to the four winds It will re-
veal to the manufacturer. be he a small
business man or a large one, that the
principles of doing business in South
America are just the same as they are
the world over. A merchants principles
of making transactions do not change
with his language. He buys and sells
to make a profit. He buys on credit
and sells on credit. He keeps his work
ing capital in the bank. and not in the
cellar. He understands negotiable in
struments. A mans honesty Is not de-
termlned by the language he speaks nor
by the country in which he resides.
This is the principle upon which a
great number OF our well known export
commission houses in the United States
have built up their business with people
in South America and other continents
Their success confirms the soundness OF
this principle. II would seem. there