The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-10-04
PACIFIC ISLANDS
LOOM IN TRADE
Products of the Tropical Seas
Grow in Importance to
the NOrthlands.

SYDNEY, Sept 1.-The islands of the
South Pacific are steadily increasing in
importance to Australian commercial IN
terests Recent publication of the
Stands trading statistics indicate that
It would be worth while FOR American
concerns to post themselves on condt-
tons governing general trading sltua-
lions in the islands.
One OF Sydney's leading business mer
who has made an extensive survey o.
the situation declares that In consider
ing trading conditions in the South Pa
cific islands il should always be re
nembered that conditions and customs
vary in different localities and at diff
ferent times, and again as regards al
ferent classes of produce. Generally
speaking, however, and from the very
nature of island trading. trade is carried
on, on individual islands by rcsidett
traders, who either deal with visiting
trading schoouers as they choose or who
are supplied solely by the firms by
which they are financed or by which
they are employed. Isolated or thiniy
populated islands are usually supplied
by trading schooners which visit them at
uncertain periods or through resideri
native traders. Considerable caution.
however, is necessary in the latter
method, which may be regarded as the
~
The wholesalers" are firms that eithe"
import or export on their own account.
Business View of the Islands.
A recent authoritative review of the
situation on the islands says:
Except in the case of one or two
big firms, which have not by any means
captured the whole of the Pacific. and
whose territory is easily opened to in
vason, organized business among the
wholesalers is an exception rather than
rule, and unless conditions have al
tered almost beyond possibility In the
last few years, with systemative pene-
tration, transport supply and control
most satisfactory results commercially
are assured.
1.-THE essential departments in such a
business will be a. buying. (2) disposal
. of produce, transport. &C.. and CD trad
ing. The first two departments should
be located away from the islands and
call for expert administration. Espe-
cially is this so with regard to buying.
Almost every description of merchan-
disc is dealt with In island trading, but
whereas the requirements u hardware,
for instance, are very much those or
other peoples, other lines, especially
clothing, must be just to the native idea
or they are useless. The native Will
spend freely for what he wants, put
will not take what does not suit his
fancy: hence the Importance of this de-
partment.
transport calls also for careful ham
ding. If firm entering into the island
business proposes to own the vessel s
necessary for that business transport
difficulties are considerably reduced,
Otherwise the question OF adequate
transport is vital. and this not because
of the conditions existing as the out
come Of the late war, but because II is
the point, IL any, at which rival firms
will most likely hit, and aggressive r.
yalry may certainly be expected.
1.-THE third department, the organlza-
ton. control and maintenance OF the
actual trading, however. is that upon
which the ultimate success or otherwise
depends, and IL the venture Is TO De
brought to the most successful possible
issue, the chief of this department must
be regarded as general manager. IEe
questions of buying and transport call
for experience and ability beyond the
ordinary, but their functions are neces-
sarily subordinate to those OF the th,ru
department, and their leaders must be
men big enough TO recognize this ai''
act accordingly.
.oThe ideal location for the general
Headquarters of an island trading bust
ness is either Sydney. n. s. W.. or Auck-
land, N. a.. The latter is geographically
the better, but the former. on account
of superior shipping facilities, is PROB
ably better from the general standpoint
Subheadquarters would be situated al
| convenient spots in the islands ano
would each control the trading opera
tons of the area assigned to them ano
attend to the details OF management IN
their section. 1t may appear that tht
trading as a whole could be conducted
from general headquarters but such vii
! not prove to be the case, as the area Is
too great and the conditions too varying
Further responsible subheadquarter'
managers are necessary for the receipt
and despatch OF produce collected by the
smaller vessels referred to later under
transport and for the prompt ade
quate check Of trading operations. Sub
headquarters would be visited at fire.
quent intervals by headquarters repre-
sentatives for the purpose of maintain
ing touch, and occasionally by buyius
and transport officials. to enable then
to keep In touch with and informed ~
regard to actual conditions and require
ments.