Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1921-08-31
Germans Bidding
Against U. S. for
Argentina Trade

Buenos Aires. Aug. 1.-American
business in Argentina is at present
being battered by drum fire of Ger
man competition, according to Ed
ward F. Feely, American Commercial
Attache in Buenos Aires.
In many lines" he saws, 1--WE are
losing business and fpom the present
outlook it appears that this condition
will probably continue for some time
as the Germans are able to offer low
er prices in a number of cases, when
the high rate of the American dollar
is taken into consideration.
However it may be accepted as a
certainty that in the long run Ameri-
cans need have no fear Of German or
other competition. Once a normal
balance has been established in in
ternational trade, so that the Amer
lean trader will not be handicapped
by the high quotation of the dollar. I
am confident that American manu-
facturers will be able to hold their
own with any country"
In such items as machinery, tools,
small hardware of all kinds, paper.
wire, eth. competition is particularly
keen, and the American manufactur-
er has small chance of getting orde rs
when price alone is the principal con-
sideration.
sion of Navigation and Ports of the
! Ministry of Public Works illustrate
the comparison between British, Am
erican and German prices Out oil
ten items bid on, the Germans were
able to undersell their competitors in
nine cases and got the business.
| In several instances the low Ger
man bid was far below the level OF
, the competing bids, indicating that
the firms offering the goods were
! willing to sacrifice profits in order to
get business. One such case. says
Mr. Feely, showed clear evidence OF
dumping. the firm making the bid
! quoting a price equivalent to about
81 900 below the factory price in Ger
many and not taking into account in
surance, freight and other costs OF
| delivery.
Many firms that before the war prof
tied from strong German connections
have been making efforts to win
| back their places in the market
/ Some of these have gone so far as to
help re-finance the German factories
! so as to be able to get quick deliver
! les. In one such case a sewing ma
chine agency helped the factory tc
compete with American sewing
machines.
! While Germany, however, is able to
undersell American merchants in the
Argentine market on many items, in
at least two ways American manu-
facturers have a considerable advan-
/ tage. These are in the matters OF
quick delivery and credits. At the
! present time. German manufacturers
in most cases are demanding either
confirmed credit before acceptance of
order or payment in advance.
! Among other countries that are
making an effort to increase their
! business in Argentina is Belgium
which is offering steel products in
particular at attractive rates. but
which. like Germany. seemingly is
not able to offer adequate credit
| facilities.
l. Among the recommendations thai
are made for strengthening American
trade relations in Argentina are the
maintenance of local offices under
permanent American management
md the investment of American cap
ital in the country. 1t is pointed out
that while the high price of the dol
lar is disadvantage in selling good.
here, it is a decided advantage ir
making investments.