The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-06-16

Specially Writter for the Ldttn American,
Section Of The SUN by y. Saver,
American ConsuI at Mdrdcdito, Pc
VsnespeId.
The business outlook in western yene-
.uela for the immediate future IL good,
due mainly TO the high price Of coffee,
the principal staple product Of that
district, The price Of coffee more than
doubled since last November and
brought plenty Of money and credit 10
the district On account OF the short
age of tonnage for exporting large
quantities not less than 10000 bass
remain stored at Maracaibo ana an
squal amount in the producing centres
OF the interior OF western Venezuela ana
at Cucuta, Colombia. -.'-.
However, what will permanently In
crease the trade activity of western
venesuela is the exploitation of the
petroleum resources already being oar
rtd out. Eight or nine sushers have al
ready been opened In different localities
afound Lake Maracaibe. only one Of
which IL being worked to supply q small
refinery at san Lorenzo and for small
shipments to Curacao.
Before the war broke out in Europe
Ii. United States had approximately l5
per cent, Of the import trade of Mara
caibo and So to 60 per cent. Of export
trade Of the Maracaibo district. BY
the time the United States entered the
war We have over so per cent. Of both
the import and export trade Of that
Ia
10 10 be expected that competition from
Europe. especially from England. viii
become more active again. British CON-
petition at Maracaibo extends mainly to
cotton goods and certain lines of hard
ware.
where the British Excel.
Trade methods, credit, &C., of our COM
petitors must necessarily engage our spe-
cisl interest. In their special lines British
cotton goods exporters have practically
no competition at Maracaibo. but in
hardware lines. where there IL real COM
petition. Maracaibo importers have told
me that they preferred to deal with
British exporters whenever possible.
mainly because they gave more attention
to packing and to details or orders ana
more prompt attention to claims. Re-
gardins packing the rule to be observed
Is that the Venezuela tariff 10 specific
and based on gross weight. Packing
should therefore be as light as possible,
consistent with safety In transportation.
Regarding credit allowed to Msracaibo
importers by exporters In different for
eish countries. comparison 10 interesting.
American exporters never ALLOW more
than four months. charging per cent
interest per annum. and generally al
lowing liberal discounts for cash. Buro-
pean countries-EDSland. France. Ger
many. Spain ara 1taiy--have allowed
six months. ana Germany used to allow
tSo months additional Iii case Of need
BEFORE the war British exporters charged
per cent interest per ahnum. and after
the war started per cent. while ex-
potters OF aat fhS continental European
countries cha,esS PER cent before the
war and ~ paf cent. after the war
started.
The NIaracalbo wholesale houses,
which are distributors for western Ven
ezuela, must allow In turn their clients
SIX months credit with an additional two
months in case of need on all imported
goods sold. except food products, which
are sold on two months credit. They
charge l per cent. interest q month
watch is simply added TO the price The
difference Ia the interest rate explains
the advantage the Maracaibo whole
salers have In liberal credit term al
loved by the foreign exporters from
whom they buy. I was repeatedly told
that American exporters should allow
sir months credit, the same as allowed
By European exporters.
The Question OF Credit.
Credit, Of course. should be extended
oMy TO hrst class firms and from the
number OF cases which have come TO my
notice, I Judge that there is need on
the part OF American exporters to make
more extensive Use OF credit information
II should be borne In mind that where
credit cannot be given to one particular
hrm' cash or draft accepted by a re-
sponsible firm should be required be-
fore shipping the goods. because once
: the goods are shipped 10 a Venezuela
port, the exporter has lost control over
them To send shipping documents with
Watt a bank in Venezuela. with In
sNuotions not TO deliver documents until
oraft Is paid. gives absolutely no Sc
cuTlty under the peculiar laws of vene--
zlela. which make 1t possible for the
consignee to clear the goods from the
custom house without the usual ship
ping documents. and which make the
shippers responsible for delivery OF all
goods on their manlfssts.
In making out consular invoices for
goods exported to Venezuela. INFINITE
care must be exercised in declaring the
goods exactly in accordance with the
Venezuela tariff schedule. 10 avoid all
errors OF whatever nature. In making
me declaration It will not serve the pur-
pose II articles are declared by the name
tAey bear In the trade. II that name Is
not used in the tariff schedule.
II will not do to call a machine by
rs exact namo when the tariff schedule,
Tor example, classihes It as a machine
not specified, Weighing less than 100
Nlos All errors are subject to severe
penalties But II II even more impor liant
mat goods shipped conform exactly TO
me specification given In the invoice.
Failure TO conform to the specification
subjects the goods to eonflscation be-