Evening star., 1938-07-24
BY CONSTANTINE BROWN.

ME- next tnTee years VIII decide
whether We can secure the South
American markets and thus elm
mate the danger of conflict with
the totalitarian states, or else -.
This is the opinion of many Washing
ton experts and important businessmen
who believe private initiative alone can
Dot fight successfully for the markets OF
the Southern Hemisphere. Government,
through the Export-Import Bank or a
similar organization, must assist the
American exporter.
At present our economic relations with
the principal South American republics
are Indifferent. In Central America and
in some OF the minor South American
republics Germany and Italy have dis
tinct advantage over us. In the larger
Mates like Brazil the situation is still
undecided.
In 1896 Germany drew larger share
Of Brazil's foreign trade: in 1887 this
country caught up and outdistsnced the
Reich by about 2 per cent in the total
foreign trade of Brazil In 1888 the bal
snce has once more turned against us.
1t is extraordinary that the United States
can do as much business as it is now
Nioing when We consider that the Ameri-
can exporter must take every chance by
himself while the German exporter has
been fully covered by his government Not
only are his investments guaranteed bv
the Reich. but the salesmen have the full
cooperation of the totalitarian diplomatic
representatives.
Pressure by Totalitarians.
There is hardly city in the Southern
Hemisphere where there is not at least
one Nazi or Fascist organization. The
Commission man in whose hands the ex-
ports and the imports of that locality are
placed is in many cases either German
or an Italian. If he is not, he generally
has contacts with the local Germans and
Italians. Naturally he endeavors to buy
the best at prices yielding most profit BY
necessity he carries line of German
goods. Should he add to his list goods pro-
duced in the United States, he is under
constant pressure of the otalitarians. who
tell him You must drop the American
goods. or. If you cannot do this. YOU must
correspondingly increase purchases from
Germany Tor Italy)."
The penalty for non compliance is that
the commission man either sees his credit
curtailed in Germany and suffers the loss
OF the agency for some of the important
staple goods produced in that country, Or
his contracts are Cancelled by the totali-
karian exporters. or orders are given to the
'Ntizens of Italian or German descent d
nationality to boycott the offender.
The principal handicap the American
exporter meets in the competitive field OF
South America. however. is the difiiculty
Of extending credits to his would-be Gus
toners.
The totalitarian statesmen approach the
Importers with offers of goods similar to
hose produced in the United States and
endeavor to quote the same price. But
oehen the purchaser says he prefers to buy
an American product, at the same price, he
is asked what credit facilities the Ameri-
can Arm is willing to extend. The answer
generally is 30, so or 30 days. The German
or the italian agent smiles broadly and
says "Of course. If you prefer to buy from
people who have no confidence in your
business integrity it's all right with me
NV Arm trusts you and as proof Of that we
re prepared to give you three, four or even
ke years to pay" There are very few
Inns capable Of resisting this tempting
offer. which also appeals to the govern
ments.
Competition in Credit.
This is the reason the United States Is
losing important orders for railways and
E>rolIing stock. While the Baldwin Locomo.
tive must insist on a comparatively short
credit for railway development. German or
italian companies are willing to wait years
before the amount due is paid. Further
more, they are all prepared to accept pay
nent in kind.
It is true that our ONCE equipment Is
supreme in most Of the South American
republics. But outside cities like Buenos
Aires, Rio de Janeiro or Valparaiso few
business Offices i'll the Latin American re-
publics use such equipment The old thin
paper copy book which Is placed under the
seat OF the bookkeeper for several hours
is still preferred to the complicated and
sfhcient American filing system.
took more diplomacy than was neces-
esry to settle the Chaco War to introduce
the cash register in South America. This
product was considered reflection on the
honor and honesty of the cashier. Every.
body knew, of course. that few peso,
stuck to his fingers every day But to admit
that. by introducing the cash register, wa.
. national offense.
While exports in which we exceed the
totalitarian states are considered mostly
'gadgets." the construction of a new rail
way line or the equipment of the state rail-
road with rolling stock built in Munich OF
the erection Of a new railroad station are
national monuments. They are permanently
under the eyes Of the inhabitants and form
one cf the main topics of conversation fol
months after they have been delivered.
These Acts may appear irrelevant X