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About Omaha daily bee. (Omaha [Neb.]) 187?-1922 | View Entire Issue (Sept. 18, 1904)
Uncle Sam as an International Merchant (Copyright, 1D0J, by Frank O. Carpenter.) AHHINOTON, Sept. 15. (Special AI Correspondence of Tho lien.) I T f I have spent some time tills week at the Stale department talking with the flr.st assistant secretary state, Mr. Francis I!. Ixjnmls, about Sam as an International merchant. although In this little more than the continent of of tTncle We have together pone over the great coun tries of tho world, noting what our export ers nnd Importers nro doing In eaeh, devot ing our special nttentlon to Europe. Mr. Loomis Is well 'M nil upon our foreign com merce. He begun his diplomatic career ns consul at St. Ktienne, France, nnd later was Kent by President McKlnley as min ister to Venezuela, where he was active In building up our South American trade. After that he was made minister to Portu gal, nnd he has since been called to Wash ington to bo tho light-hand man of Secre tary Hay In connection with our diplo matic and commercial relations the world ever. Our conversation about trado mat ters covered the globe, letter I can give you that which relates to Europe. "tTncle Sam now lends tho world, as an International merchant," said the flrrt as sistant secretary of Htate. "Our trade has been growing during tho last two adminis trations tiy leaps and bounds, nnd It will be larger this yenr than ever before. Prior to 1!0 the totnl exports nnd Imports had never reached $-COO,onO,eOO. Iast year they were almo.st $2,5i fl.OPO.nro, an Increase of $ir,0.OTO,icQ over our foreign commerce of ivn and greatly In excess of that of 1D01. We have been gaining In exports during tho last year and wo are now first among the nations ns an exporter of domestic products. Pefore this tho United Kingdom had been at the head of the HhI; but dur ing the nine months ending with March, 1IKM, mir domestic exportation was ns much ns $7r,,OoO,ooo larger than that of Great liiltaln." "Which are our best customers among tho nations?" I nked. "Great liiitaln anil Its dependencies nre far In the lend," replied Secretary I.oomls. "We sell tho United Kingdom more than JTiOO.noO.eiin worth of domestic goods every year. Germany comes next with less than $?oo,000,nrt. nnd after that the Netherlands, Frnnce, Helglum, Italy, Mexico, Austria Hungary, Cuba, Japan, Spain, Tenmark, China and Ttussla In the order named. Wo have a largo trade with tho Itrltlsh de pendencies. "Cnnnda Is an excellent customer. Tt takes from us nbout as much ns South America, Asia nnd Africa combined. In other words, nccordlng to the figures of the Popnrtmcnt of Commerce and Labor, Issued last April, our sales to Canada amounted In round numbers to $l?fl,O(:0,rort, while th" total for South America, Asia and Africa Is less than $119,000,000. Aus tralia Is another good customer. "Its Imports nre In value nbout as great as those of Japan, while Oreat Hrltaln nnd Ireland buy annually from us more than half of our total sales to Europe, and be tween two or three times the nmount we annually well to the Germans." "Rut nre not the Kuropean nations fight ing ngnlnst the spread of American manu factures?'' "I would not say that they nre fighting lis," replied the assistant secretary of state, "but they nre doing nil they can to manu facture for themselves nnd to compete with us along the lines of American manufac ture. Frederic Kmory of this department called nttentlon to thnt danger in his 'He view of tho World's Commerce for 1fH2,' showing that American factory methods were belns Introduced Into tho machine shops of Kurope, nnd that the manufac turers were Imitating our ln!or-savlng ma chinery nnd everything else that we have to tiring nbout economies in the cost of out put. Large American concerns have estab lished brunch, plants In different parts of Europe, nnd they nre now making on the Spot goods of many varieties which were previously exported from the United States. Tho result Is that there has been a curtail ment nlong certain lines, but the exports of manufactures have so grown that tho total Is larger than ever. Our banner year In tho export trado wns 1WX1, but the exports of this yenr have exceeded those of that tlmo by nlmost two million dollars per month." "What kinds of American goods nre being displaced by these foreign manufactures, Mr. Loomis?" I asked. "Shoes, bicycles, machine tools, hard ware nnd furniture," was tho reply. "In deed, there Is a great variety of articles which we formerly exported which are now being manufactured In Kurope. We still ell many American shoes In England, but the Kngllsh shoe factories have adopted the more popular Americnn styles and nre Bslng Americnn machinery and Americnn lasts. In somo of tho factories they hnve American foremen. In a recent report Con sul General Mason of Herlln said that Ger many Is now practically equipped with our most Improved machinery, nnd that her mechanics have learned how to operate the Imported machines to their fullest capacity. They nre copying the best of the American machines, and In some cases Improving upon them. They are nlso making other machines along the same lines at a much lower cost! "Indeed, the Imitation and use of Amert- 1 v. r V - " " -V - V-., ' m ' ' r. i. - : .. . . .- I'M. - - . 'V ft ' . - V - 'VA... ... '.-'"'4 Vtfi It- i 2 FHANC13 H. LOOM1S, FIRST ASSISTANT SECKKTAKY OF STATE3. can machinery In Germany makes It more nnd more dillU ult for American exporters to develop a profitable maiket there for our tools, hardware, furniture, vehicles and other products than it was a few years ago. Consul General Mason says the- murkut Is steadily narrowing and growing moro difficult of access, and that this is so In almost every branch of American manufac ture, with the exception of such tilings aa typewriters, sewing machines, grapho phones, phonographs, cash registers, me chanical musical instruments, dental sup plies, office furniture and other American specialties more ore less covered by patents or trado marks. The fic!d of standard hardware and cutlery is closed, for tho reason that such things are now made in Germany as cheaply as in any place In tho world." "How about American inventions and novelties?" I nuked. "That market will always be on open one," said Mr. Loomls. "The Germans ure especially anxloua for novelties, and the fact that a thing Is American is usually an evidence that It is new. Every new machine, lamp, motor or fixture of any kind that will do Its work cheaper or bet ter than the article of the same kind now in use can demand a sale In Kurope. The Germans appreciate the ingenuity und me chanical skill of tho Americans. They nre glad to get our improved machinery, nnd really good things will always find a ready market among them. It need hardly be said that all novelties should be pro tected by patents or trade-marks nnd that they should be offered by skill ful mer chants or by agents who can explain their merits and who understand how to ssll." "It is this ability to invent and contrive new things that keep our trade steadily advancing," continued Mr. I.oomls. "We may lose ground in somo directions, but we gain in others, and American wares are on the whole more popular than ever. There is no doubt, however, that we do not foster our foreign trado as wo should. 'Manufacturing for export' is little more than a side Issue for many of our great concerns, and our consular reports bristle with statements of the Indifference of our exporters to what would seem to be pri mary conditions of success in pushing our goods abroad, "We should have our manufactures spe cialized for the foreign market and export agencies specialized, for handling our trade. Tho work should go on during good times nnd bad and should not bo dropped In order to supply tho home market. As it is now, we have no such arrangements, and nevertheless we have within ten months Increased our manufactured exports by $1!), 000,000. Germany nnd Great NriMIn have brought matters of this kind to a high point of efficiency. When y- du the same it Is fair to assume thnt our advance Jn the world's market will be steady, con tinuous and practically Illimitable." "What nre we doing in Russia, Mr. Loomis?" I nsked. "Our latest figures through the Pepart ment of Commerce and Kabor show that our exports to Russia Increased up to tha breaking out of the war with Japan. In the eight months ending with last Febru. ary such exports exceeded, those for th samo period of lPOl by more than $1,000,000." "What effect will tho war have upon the trade, Mr. Loomis?" I asked. "We cannot tell as yet," said the firsr assistant secretary of state, "but it would seem that so vast a country as Russia, still in the earliest stages of its develop ment, will continue for ninny years to im port, in Increasing quantities, our machin ery and labor-saving implements. Our ex porters, it is true, have now to contend with the discrimination against American goods imposed by the Russian customs tariff of 'X. That was brought about as a retaliation for the differential sugar du ties Imposed by the United States. Now, nlthough the Kngllsh and Germans have gained in some lines of exports, our con suls write that American farming ma chinery and tools are sold in larger quan tities than ever. The people prefer our machinery, and say that our goods nre better made and more practicable than those of other countries. Consul Chambers of Iiatum, for instance, reports that our manufactures nre successfully competing with those of Europe because of their low cost nnd their superiority, nnd this, not withstanding the 30 per cent of extra duty charged upon them. Consul General Hollo way of St. Petersburg writes the same ns to the superiority of our goods and their popularity, so you see they still hold their own in the markets of Russia. "I understand that several of our largo American institutions have established branch factories In Russia and other parts of Europo. Will not this lessen our ex ports?" "Certainly it will," replied the nsslstanC secretary of state. "It will not only cut off the exports of those goods, but it will give tho foreigners an object lesson as to how to compete with us on our own lines. Such factories save transportation charges; they may have cheaper labor and they avoid the customs duties, which In some countries nre very heavy as regards exports from the United States. Ono of the largest com panies of llttsburg has d branch establish ment or a sister company in St. Petersburg, which works 500 men and has a capitaliza tion of nbout $1,500,000. The Westinghouso Electric company has great works in south ern Russia und the Itrltlsh branch of that company has been incorporated with a cap ital of more than $10,ooo,. Its great plant at Manchester employs C5D0 hands and has what are perhaps the finest machine shops In Europo. There Is a French company which has a capitalization of $4,000,000, em ploying 1,100 men. The General Electric company lias a great manufacturing estab lishment in England nnd Is closely asso. elated with some of the German electric companies. These companies make nil sorts of electrical materials for sale not only in England, but in nil parts of Kurope. Their orders run high Into the millions of dollars a year, nnd Inasmuch as a largo part of their stock is owned by Europeans, not only Is thnt business shut off from the same companies in the United States, but the profits received from It are largely spent in Europe. There are other branches of In. du8try which arc being carried on In the same way giving to their European fac tories oil Ui advantages of improved American machinery and operative ekfllj for the managers and foremen axe picked men from the factories of the Unltea Btates. The workmen are mainly native but the system la such that each factory becomes a special Industrial school, wher Kuropeaji men and boys are trained bj American experts how to compete wIUi American trade." "Can you give me a list of the great American factories abroad!" "No, although I can say that such fac tories are being established In Canada, Mexico, Great lirltain, Germany and Rus sia, Consul General Mason writes that Germany has a large number of thctn, and that they have a definite advantage over their own or rival firms and companies located in the United States. "The efJiclency of our consuls, as business agents, Is best found In the testimony ot our largest manufacturing and exporting houses, and in the u-most unanimous trib ute of foreign trade bodies. Journals and publicists. There is no government which publishes so much commercial information, from its consuls, und there is none which Lssues it so frequently as does the United Stales. The Consular Daily, containing re ports on an infinite variety of subjects, is unique among the official publications of the world. It was establish) d at the sug gestion of F. C. Kmory by tho State De partment In lStlS, in order to give the busi ness public up-to-date information from all parts of tho world. When the Depart ment of Commerce and Dabor was estab lished the publication was transferred to It, but the reports are still obtained through tho State Department, acting In co-operation with the new department. Re sides these daily reports the consuls fur nish others upon special passes of sub jects. They furnish Information upon in quiry for Individual firms and endeavor In every way, within the bounds of official propriety, to facilitate the sale of American goods in their respective districts. "Foreigners generally concede that American consuls are much more efficient aa business agents than their own. In fact, somo of the Kuropean consular serv ices, which certain theorists of tills court try have held up for us as models, are fre quently criticized at home because they fail to furnish the timely practical informa tion given from day to day by the consuls of the United States." "Tho reports of our consuls," continued Secretary Loomis, "have become noted for their practical character. They are not es says, but notes Jotted down by this or that consular reporter, because he thinks they may Interest tho American manufacturer, or merchant, or perhaps our engineers, miners, factory operatives, bankers, school teach ers and others. This department seeks to encourage and devolp this faculty in the consuls and the result has been an Increas ing appreciation by the public of the value of the consular service. Our consuls are also doing great good as advertisers of our products, and their Industry In picking up new Ideas for tho benefit of the business people at homo Is a constant source of sur prise among forelRuers and sometimes of Irritation on the part of mich manufactur ers abroad who have seereto which they wish to hide from possible rivals in tb United States." "I would say, however," continued the assistant secretary of state, "thnt there Is n well defined limit to all official agencies In the promotion of trade, and that what ever of failure is charged upon our con sular service in pushing the sale of Amer ican goods is mainly due to a mistaken Idea of its capacities. Tho consul can point out the way, can suggest, nnd often personally assist the efforts of business enterprise, but he cannot supply Its place. There must bo active, Intelligent work on the part of tho exporter in connection with the manufacturer if we would have a healthful nnd permanent foreign trade In any part of the world. "As It Is now, no such effort Is general among our business men, nnd the most of tbem nre not sufficiently Interested In for eign trade to master the conditions of Its success. They have a large home market, nnd they find It pays them to devote the bulk of their efforts to it, giving only Inci dental nttentlon to the foreign demand as a convenient outlet now nnd then for their surplus stock. The result Is that our con sular reports arc full of complaints nnd advice about the Inefficiency of tho Amer ican exporters and manufacturers. Ther will not make special sorls of goods for the foreign market; they are charged with careless packing, with unwillingness tt conform with foreign trade usages and with sending out salesmen who do not un derstand tho languages nnd customs of the countries they are to work. We have a few notable Instances of American estab lishments which npply the samo energy, care nnd intelligence to their foreign trade as to their business nt home, and these companies are, as a rule, phenomenally successful. They show what we can do abroad when wo bring our best efforts to the study and pushing of our trade. I be lieve that In time our peoplo will awaken to the great value of the foreign markets, and that we will then have a still more, enormous part In them." PRANK Q. CARPENTEB.