William Edmund Aughinbaugh

“ It is impossible in even briefly writing of this really wonderful country to refrain from some reference to the one man, Lopez, whose desire for power resulted in the almost total annihilation of a people. His arbitrary rule embroiled his nation in disputes with much of Europe and the United States, and resulted in a war with Uruguay, Brazil and Argentine. ”

“ Commerce is a great civilizing agency. The higher in the scale of civilization a people are, the more secure will trade relations with them be. The larger and more important countries of Latin America have at last begun to realize that internal peace means prosperity, that prosperity attracts, yes invites capital, even from the timid and those whose government does not stand behind them in a dignified manner. ”

“ One of the chief reasons for the scarcity of invested American capital in Latin America is the indefinite and indifferent attitude of our State Department in failing to protect its citizens abroad or in seeking redress for injuries done individuals or business conducted in these countries.
No race of men are as enterprising or venturesome or more truly pioneers in every sense of the word than we Americans. This trait is a natural inheritance from our forefathers, who left comparatively civilized and comfortable Europe to gain a livelihood in the wilds of unknown and unexplored America. ”

“ PACKING AND SHIPPING The method of packing goods intended for the export markets of Latin America is worthy of the greatest study and the most serious consideration. Poor and improper packing, so characteristic of American made goods, has caused us the loss of much business, and wherever I have been in these countries it has formed the subject of much unfavorable comment and highly warranted criticism. Of late there has been a slight tendency toward improvement in this really important branch of the foreign trade, but there is still much opportunity for bettering conditions in this regard. ”

“ The custom-house officials deem it their duty to harass, embarrass, annoy and add to the troubles, worries and expenses of the merchant in these lands. They are veritable boulders in the path of business progress. The charges, fees, tariffs, taxes, and the hundred and one incidental and unwarranted expenses which exist in no other custom-houses in the world save in those of Latin America, change from day to day and are susceptible to as many interpretations as there are government employees having any work to do with the goods under consideration. ”

“ THE SALESMAN AND THE CUSTOMER The success or failure of a business venture in Latin America depends materially on the character of the representative sent to these marts of trade. Never having seen or heard of you or your goods, it is most natural for the foreign merchant to make his deductions from your emissary.
The typical ambassador of commerce for South American fields should combine elegance of dress and courtliness of manners; be a linguist; a scholar; a diplomat; a philosopher; always a student and a business man as well. ”

“ The virtual closing of all the doors of the export and import trade of the Old World and the almost total dependence heretofore of the Far East and Latin America, especially, on Europe for finance and trade connections made the war truly the psychological moment for us, as a nation, not only to overcome the lead of the European commercial world, but also to cement by other than ties of business the bonds of friendship due us not only on account of our ideal geographical position, but also because of our similar republican form of government. ”

“ For six years he followed medicine in Latin America, finally giving it up to accept an offer from a large company vwho compensated him accordingly. His experience in that line alone took him all over the world and the ramifications of the business brought him into close contact with the marketing of nearly every other commodity. But even had this not been so, he is the sort of man who would have sensed a business opportunity because he is naturally a keen observer and everything interests him. He is the type of man who absorbs information; he does not have to be shown—he sees. ”

“ The basis of exchange between countries depends primarily on the relation existing between the gold value of their respective moneys, the price paid being materially influenced by the condition of the balance of trade and the social or political state of the country. For example, with the balance of trade in favor of England, the price of exchange on that country would go up a fraction of a point or so, while if a country is in a state of political or economic unrest, or at war, the price of exchange on it goes much higher than if conditions were normal. ”

“ To-day in Latin America our banking institutions may be found in the Argentine, Brazil, Panama, Cuba, Santo Domingo, Porto Rico, Mexico and to a small extent in Haiti. As it becomes apparent that our merchants and those of other countries require financial organizations to further and facilitate trade with the United States, additional establishments will be opened in these lands until ultimately the dollar will be so enthroned in the estimation of the business world that it need pay no homage to the Pound Sterling, which up to the present has been Emperor Supreme in the Realm of Finance. ”

“ Very naturally the great demand among these people, as it is among persons of this class elsewhere, is for the necessities of life—cotton goods, textiles, patent medicines, shoes, farming implements, hardware, machinery, tools and the like. These are the things required by the farmer and the laborer who make up the greater proportion of the world’s population, and perhaps the very best way to reach them is through the influence of the middle man, the jobber and the local storekeeper. Of these three, the village merchant is by far the most important with the masses. ”

“ It is decidedly unfair for a country to collect revenues both ways, namely, on its exports to us and on our exports to it.
The importer is the one who bears the brunt of these burdens. He is continually paying bribes or fines which are of course added to the cost of the goods. Failure on his part to “come across” means delays, loss of goods, higher port charges and incalculable annoyances. One of the great objections to this system of robbery aside from its basic principle of error is that one shipment does not serve as a means for calculating a price on the next one. ”

“ The linseed of the world is produced by Argentine and India. The small farmer trades it for supplies to the village merchant, who in turn exchanges it for goods with the jobber in the capital or seaport. To these men come the buyers for the Greek firm which practically controls this industry and purchase the seed, and we, the most extensive users of linseed oil in the world, pay our toll and tribute to the able and shrewd men who have their headquarters in Athens. ”

“ The fact is that the burro, the llama, the camel, the elephant, the coolie and the Indian are yet the greatest common carriers, and it will be many, many years before the shrill whistle of the locomotive will supplant the jingling bells of the pack train, or the slow moving caravan, in the outer edges of terra firma. In Latin America to-day, in proportion to its size, there are comparatively few railways, and fully another century will elapse before it possesses half the amount of mileage that we have at present in the United States. ”

“ They keep their fingers on the pulse of trade, know mine outputs, crop prospects, cattle productions, stability of governments, possibilities of revolutions or political unrest, the condition of business—in a word everything that has any bearing on banking or that could by any possibility reflect on the money market. ”

“ Some have been worked for thousands of years and are still productive. Their broad fields are destined to make them the granaries of the world. Their miles of pasture lands and their extensive acreage mean that Europe and the United States will depend upon them for meat. Their vast virgin forests are capable of supplying humanity with cabinet and other woods for several centuries. Their trade and imports must therefore increase. It is apparent that they cannot diminish. We cannot as a nation afford to remain indifferent any longer to their possibilities and opportunities. ”

“ I have attended these markets and have yet to meet an American buyer representing any of our woolen cloth manufacturers. We buy much of our wool from European markets, thereby giving Belgians, French, English and Germans who have initiative and enterprise a profit on their business acumen. Is this sensible? It only adds to what each one of us pays for our clothes.
Ecuador’s chief product is cocoa. It is the largest grower of this commodity in the world. The bean is perhaps the richest and most highly flavored and is in great demand in the trade. Europe buys 80 per cent. ”

“ Nothing paves the way for so much ridicule as poorly expressed and badly produced business documents, for the keen eye of the Latin notes errors with great precision. Efficiently produced and artistically printed materials of this nature impress one in these lands and help materially in giving you and your firm a high standing in the minds of the native merchants, while poorly got up pamphlets and the like open his flood gates of criticism and prejudice both against you and your goods. ”

“ To expect to ship a nation your raw or manufactured materials, receiving only in exchange therefor a monetary consideration, is neither equitable, sensible nor practical. It is decidedly lacking in business judgment and reflects on the sincerity of the country endeavoring to do its trade along such lines.
Perhaps the chief reason that European Powers have obtained such a foothold in foreign markets is due to the fact that they take in exchange much of the crude exports of these lands and convert them into finished factory products. ”

“ Think of what must be the opportunities in Brazil—a country larger in area than the United States, and supporting only 20,000,000 people—or of Argentine, spreading over almost as much territory as Europe, excepting Russia and Austria-Hungary, with a population slightly more than 7,000,000. It is to these 11countries that overcrowded Europe must come for elbow room—for a glimpse of the sun.
Once a business or a plant is established in Latin America one need not have the intense fear of bitter local competition. ”

“ In fact the prosperity of all these nations is directly due to the presence of this great organization, which finds a market for its products in Europe 365and the United States, and which through its various local branches and stores, as well as its numerous employes, is a potent factor in introducing American goods and American ideas to all with whom it comes in contact. Its large fleet of ships come to all the leading seaports of this country, and the vast trade which it now controls, and which is still in its infancy, is capable of enormous growth. ”

“ In many of the countries of Latin America, owing to their enormous extent and lack of travel facility, as well as the exorbitant local freight rates and great distances to be traversed it is often wise to establish more than one agency. In Brazil for example, it might be well to place agencies in Rio de Janeiro, Santos, Bahia, Pernambuco, and Para, for the simple but sufficient reason that the freight on goods from New York to any of these ports direct, is less than the local freights between many of these cities. ”

“ Before entering a foreign country for the first time, it is well to obtain letters of introduction to leading merchants and especially to government officials. They prove wonderfully beneficial and are highly successful in smoothing out the rough places which are sure to be met with in the paths of business. It generally pays to act implicitly on the advice given by responsible people living in the land wherein you are a pilgrim, for they are well acquainted with local idiosyncrasies, and can suggest the exact spot where a small tip will facilitate matters materially. ”

“ Banking arrangements must be made. Municipal and state taxes must be provided for and the thousand and one details attended to that are unknown and unheard of in this country, each one of which requires patience and tact in solving and means the expenditure of money and the apparent wasting of much time. In other words the initial expense involved is far greater than a similar undertaking would be in the United States or Europe and only a business yielding large profits can be expected to withstand the immense financial drains to be incurred. ”

“ Travel along the coast and to the cities located on the railway lines is comparatively convenient and comfortable although very expensive. In the interior and from the beaten paths it is difficult and filled with hardships.
Living is high—much more so than in the larger cities of the States or Europe. Hotels are far from the standard one is accustomed to in towns of corresponding size, throughout the world—a statement equally true of all Latin America.
At first the monetary system of Brazil may confuse one, its currency being on the gold exchange basis. ”