Evening star., 1928-02-12
u. s. OUTBIDS GERMANY
FOR TRADE In AMERICAS
Teutonic Merchants Score Gains, but
Fail to Make lnroads OH Well
Established Business.
ny JULIUS KLEIN.


Conmcrce.i
~ YER since the .Armistice there
l. has been evident in business
circles more or less Spasmodic
IL anxiety as to our Latin Amer
lean trade position with regard
TO European competition, and particu-
larly that Of Germany.
These fears have been especially evi-
dent with each recurring outburst of
more or less impulsive anti-American
propaganda in the Southern republics.
Every such explosion has renewed the
uncertainties as to our ability to with
stand the consequent capitalization of
the situation by our European trade
rivals, whose eagerness to re-establish
their pre-war pre-eminence. particular =
ly in the richer markets along the
southeastern seaboard of South Amer
lea, has been all too evident.
Aspects of Situation.
II is well to take stock OF this situ-
alton and to evaluate the more or less
emotional aspects Of it, which have
apparently distorted unduly our calm
consideration of the actual facts in
volved. The fear of German trade in
cursions in Latin America has been
persistent bugaboo for some 20 years
or more. and with Latin American
affairs now so conspicuously in the
foreground Of our international rela-
tons. it is by all means desirable that
we regard the position OF this one OF
our two leading rivals dispassionately
and without fervid viewing with
alarm" on the one hand or fiamboyant
patrinfeering on the other.
Precisely what is Germany'S present
status in the Latin American markets?
How important are they in her present
world trade program as whole, par
ticularly as compared with pre-war
conditions? What is she doing to ad-
vance her campaign in the Southern
markets? Are these moves likely to em-
barrass the present status and the ex-
pansion Of our own trade? II so. what
can be done about it? What are the
elements of strength and weakness on
our side in the event of such con-
f1lct?
In the first place. there is no doubt
about Germany's strenuous foreign
trade efforts in general. According to
preliminary estimates. her total exports
in 1927 have increased 20 per cent
since 1925 and nearly 81 per cent since
the worldwide depression OF 1921.
And when We remember that this is IN
the face of a thoroughly stabilized
mark exchange on a firm gold value.
the increase is all the more impressive.
The 1927 total is very slightly above
that Of 1913 in value, which means
that. with proper allowance for price
changes, the total volume OF her ex-
ports today is short Of the quantity
shipped In the last pre-war year ny
about % per cent. She Is stili long
way from her total pre-war volume,
rnA nj
should not take her long TO regain that
position
Distribution Of TRADE.
There Is no doubt. furthermore. that
the old pre-war Latin American haunts
Of German traders hold speciai ap-
peal for them and that they VIII un-
doubtedly be increasingly In evloence
In these centers as time goes on. But
Latin America and Latin American
tories generally have such a strong
MID ,pon the public imagination that
the current belief seems TO be that
these Southern trade areas absorb o
very large part Of Germanys totai
overseas effort. As matter OF TACT.
this is far from being the case ny
fsr the greater part Of her EXPORT trace
is with her European neighoors. VINO
took nearly three -fourths OF her total
sales abroad last year-73.5 per cent. as
compared with rs per cent in 1913.
Tnere is no likelihood Of any SUD-
x.antiai change in this situation. Latin
America will probably continue LOT
wears 70 take q relatively very smaii
mar. of Germany's export trade IN
Tact. all OF the regions TO the soutn %
the United States bought. IN lszf, Mss
than 10 Der cent OF Germanys UIaa
shtpu1ents abroad. which Is almost ~.
sctiy the same as their snare IN isi"
(72 per cent?. , .a,,,
.s gc eyer half again as much OF Ger
nasnyg export trade as the Snoe oi
latin America. although much OF tniS
pyuf, trade involves goods N transit
7. rnay be noted also that CZecnoSlo-
yskia and Hungary together take o per
cent Of the exports Of their noftnern
neignnor. which is only signify oelo"
the snare q! all Of the 20 Latin Re
publscs o. the New World.
In other words. 1t ig quite absurd 70
deoict the entire German business woflc
a. sitting up nights In grave concern
oyer a trade which, after all, represent
only about one-ssxteenth OF their total
overseas markets. This trade was val
aed In 1927, according 70 preliminary
figures al about $3.50. 900 900. whereas
the sales OF the United States IN the
same markets. If estimated on flgures
for II months. showed 10 1927 total
value u 1886 900 900.
review IT the relative importance
of Cerrnany's sales In the leading Latin
American markets brings olt some IN
terestitg facts III the first place, Ar
yentina il nov conspscuols!y her major
trace objective, At. indeed. IL was IN
1913 Gernlany's sales in that market
IN 1927 wefe approximately $7O,oDo.VD
~ compared with our total of about
fIg4 0G9 900. Brazil came second. wlth
spy4t t2s 000 900 tour sales there las,
year were approximately $50, ,00o,oDDJ
snd Colombia third with about u.s.
900 900 lin comparison with our co"
Jonlbian bsjes Of 1000 900 In 1921
Incideutaliy, this position of Colombia
is Interesting t,ecaaIse she has risen slntt
1913 tfDin seventh placs ~ thlrc IN
having s3ahSeG Chile. nezico Cuba and
Uruguay.
Colombian Market.
H. fart the C33DfgDlafl tHafket seems
w. o. abo1TDing Il Rapidly Increasing
share 81 German effort IN recent ysaIs
LlkeHise. TIC nelgHiDfing msrket ~
VeIrz1sla has Tlseii very substantially
IL the esteem ~ German merchants
wiAp4e saieg there were valued at but
ljstis more than t2,0o0 900 IN 1919 bui
approached 5000 900 .n 1927 Chile
which Was the third Latin American
Market for German products before ihs
wsF, has now fallen 10 fourth place, fol-
lgwsd by Ms1ico stla EiilA,
The German drive in Colombia is fs
thsr interesting. iseealse, indirectly, y
!ls& benefited substantially by tiie pfts'
tige Df the German Austrian aviation
company, the Gaoasosts CojoiIlba Ale.
mans de Jf@TaD9fiss Aefne T'sstsdts" }
tstfai4aQ.iis, Athi4 bsRan Di,efatp,Ils II
1921. its seTYies& hTe FnoWu EA th,
Only commercially Drotltai,ie pi,es IN til'
world Eseapjaiash DfoFlde three seFE