CORNELL UNIVERSITY LIBRARY Cornell University Library HF3212.P1831919 Pan American commerce, past-present-futur 3 1924 021 077 858 Cornell University Library The original of tiiis book is in tine Cornell University Library. There are no known copyright restrictions in the United States on the use of the text. http://www.archive.org/details/cu31924021077858 PAN AMERICAN COMMERCE Past — Present — Future from the Pan American viewpoint. REPORT of the SECOND PAN AMERICAN COMMERCIAL CONFERENCE Held in the Building of the Pan American Union, Washington, D. C. June 2-6, 1919 A summarized report based on the steno- graphic record of the proceedings, addresses, papers, and discussions, together with addi- tional data, lists pf those in attendance or represented, charts, illustrations, etc., prepared by JOHN BARRETT, Director General of the Pan American Union, assisted by PROFESSOR JULIAN MORENO-LACALLE, Recording Secretary of the Conference PAN AMERICAN UNION Washington, D. C, 1919 The Pan American Union in its capacity as the official international organization of the American Repub- lics and its officers are not to be held in any way responsible for the opin- ions expressed or statements made in the discussions, addresses and papers included in this report. A few omissions of names, or in- correct records of them, have been un- avoidable, through the inability of the presiding officer to identify persons speaking or their failure to give in their names. In printing, moreover, such a mass of material certain errors in the text will be discovered. Cor- rections, therefore, for an errata page in a second edition will be welcome. SPECIAL MEMORANDUM 1. In order to have a comprehensive viewpoint of the practical nature of the Second Pan American Commercial Conference, and the value of this book, it is hoped that every one consulting it will read the Foreword. 2. It is respectfully requested of all those who read or use this book that they will kindly notify the Director General of the Pan American Union of any errors they may discover in it, in order that there may be published a revised errata sheet. Errors have been reduced as far as possible to a minimum, but, in reporting and telling the story of a great Conference like this one, some mistakes are unavoidable. 3. By accidental misunderstanding as to the placing of the diagrams or charts covering the commerce and trade of the countries, they were distributed through the book for the purpose of balancing the illustra- tions, and not located in the material descriptive of the countries, as they should have been for convenience. To facilitate, therefore, .the finding of these diagrams the index in the back of the book should be consalted either under the head of the country or under the title "Diagrams of Foreign Trade," page 458. 4. Other corrections already noted should be the following: Dr. Mario Diaz Irizar not Yrizar, pp. 51, 59, 281 and index. Capt. Max L. McCollough not McCuUough, pp. 35, 48, 237 and index. Henry Hirtler not Hurtler, p. 39 and index. ; Walter B. Graham, strike out "Temporary" p. 431. James Whitehill should be listed with "Guides" Building and Grounds, p. XVII. District of Columbia not Colombia, index p. 458. Trade Marks and Copyrights 281-286 Trade Regulations < 287-297 Vll TABLE OF CONTENTS Page Foreword . . ix The Pan American Union xii Resolution of the Governing Board Authorizing the Calling of the Conference xiii Call for the Conference xiv The Governing Board of the Pan American Union xvi The Executive Officers of the Pan American Union and Assistants for the Conference xvi The Pan American Union Staff xvii Summarized Extracts from the Program of the Conference xviii The Rules of the Conference xviii The Program of the Conference xx The Minutes of the Proceedings of the Conference 1-89 Papers and Addresses on the Latin American Republics and on Pan American Commerce : Argentina 91-96 Bolivia 97-113 Brazil \ 116-128 Chile 129-137 Colombia 138-143 Costa Rica 144-145 Cuba . . 146-lSl Dominican Republic 1S2-1SS Ecuador 156-157 Guatemala 158-165 Haiti 166-169 Honduras '. 171-174 Mexico 175-177 Nicaragua 178-181 Panama 182-183 Paraguay 184-194 Peru 195-203 Salvador 204-205 Uruguay 206-208 Venezuela 209-222 Shipping and Other Transportation 223-234 Aviation 235-238 Trading Methods 239-265 Weights and Measures 266-274 Parcel Post 275-280 Trade Marks and Copyrights 281-286 Trade Regulations 287-297 TABLE OF CONTENTS— (Continued) Page Financing Trade , 298-310 Engineering Aids to Commerce 311-338 Sanitation .' 339-344 Commercial Intelligence and Publicity. 345-367 Educational Auxiliaries to Commerce 'l". .'. . 368-386 Appendix : Practical Pan Americanism. 389-394 Report of the Director General of the Pan American Union 394-397 Latin American Trade— '1913-1917 — A Comparative Survey.: 398-401 Important Travel and Trade Routes in South America 402-404 List of Firms Represented and Delegates 405-451 Alphabetical Index 453- FOREWORD By John Barrett, Director General. This volume is unique. It contains more up-to-date information on Pan American commerce than any other single book yet published. It tells the story of one of the most practical commercial conferences ever held. It should be not only read but studied carefully by all those interested in Pan American relations. It is literally at once a primary and advanced text book on Pan American trade and everyday Pan Americanism. It is a symposium of both average and expert opinion. It covers in some measure nearly every phase of Pan American commercial, financial and economic conditions which must be considered and faced after the world war. It also reviews the past and discusses the present. Every Government bureau and official having to do with foreign commerce, every representative public and private library, every progressive commercial organi- zation, every corporation, firm, house, and individual conducting or planning to conduct Pan American or Inter American business, every educational institution interested in foreign relations, every student of foreign commerce, every traveler going south or north in Pan America, every society, club or school studying Pan American questions will find it most helpful. If this statement seems an exaggeration, please note carefully, first, the inspiration, purpose, character, and conclusions of the Conference; second, the table of contents and the index; third, the list of those in attendance and repre- sented; foil-rth, the names of those making addresses, reading papers and engaging in discussions ; fifth, the topics considered ; sixth, the actual information, practical ideas, useful facts, and new suggestions contained in the addresses, papers and discussions. When at the April meeting of the Governing Board of the Pan American Union — composed of the Secretary of State of the United States and the Latin American diplomatic representatives in Washington — the Director General's recom- mendations for holding this Conference were approved and he was authorized to issue the call that it should convene only two months later, in the first week of June, the majority of those consulted expressed doubt that in so short a time arrangements could be completed for its successful meeting. Thanks, however, to the hearty cooperation of the Governing Board and the staff of the Pan Ameri- can Union, the special assistants for the Conference, the active help of the Bureau of Foreign and Domestic Commerce of the Department of Commerce, the office of the Foreign Trade Adviser of the State Department, representative officials, experts, business men, financiers, and commercial and financial organizations of Latin America and the United States, it was possible by intensive effort for the Director General to call the Conference to order Monday afternoon, June 2, and to declare its adjournment Friday afternoon, June 6, after four and one-half days of three sessions each, largely attended and characterized by exceptional interest and edification in both addresses and discussions. There were over 1,100 separate acceptances of invitations and nearly 800 individuals took the trouble to register. Over 150 representative Latin Americans attended and participated. There was a spokesman for every country of Pan America and there was the greatest frankness and freedom of discussion. The Second Pan American Commercial Conference was Pan American — All American — in every respect. As convincing evidence of the practical value of the Conference, there are given below extracts from the final summary of its work read by the Director General just before adjournment sine die: If the work and results of the Conference can be unofficially summarized in the form of expressing the sentiments of the majority of those, in attendance, as judged by their addresses and comments, the following conclusions should be cited : 1. The early establishment of ample freight, mail, and passenger steamship facilities between the principal ports of the Atlantic, Gulf, and Pacific ports of the United States and the corresponding ports of Latin America. 2. Thorough reciprocity and mutual cooperation in trading methods and regulations, in business ethics, and in general treatment of commercial relations, including export and import combinations, and other governmental aids to commerce. 3. The meeting by the financial and business interests of the United States of the financial needs of Latin American Governments and private undertakings. 4. Safeguarding of patents, trademarks, and copyrights of each country in all the other twenty countries through the present Inter- national Bureau at Havana and the early opening of one in Rio de Janeiro. 5. Making the parcel post beneficial alike to the exporters" of the "United States and the consumers of Latin America through the removal of unnecesary restrictions and regulations. 6. Improvement in the administration of consular offices; developing similarity of consular invoices' and fees; annulling o'f petty laws and regulations annoying to trade and travel ; the revising and per- manancy of tariffs; better conditions of insurance and packing. 7. Extensive railway and highway construction all over Latin America ; the renewing of railways already in existence but suflering from lack of supplies due to war conditions ; the establishment, as soon as feasible, of fast aviation mail, express and passenger service; and the building immediately of a chain of good hotels in the principal Latin American ports and capitals. 8. Better credit facilities for Latin American buyers by United States exporters ; the extension of United States hanking connections ; and more intimate study of actual Latin American trade and social conditions by the export, import, and financial interests of the United States. 9. Study of the Spanish and Portuguese languages, Latin American institutions, history and geography by the people of the United States and a corresponding study of the United States by the people of Latin America ; general vocational training for Pan Ameri- can trade. 10. The further improvement and extension of news and cable service: the employment of the best methods in newspaper and maga- zine advertls'ng, catalogues, business films, and other agencies of com- mercial publicity and intelligence. 11. Holding ef the Second Pan American Financial Conference at Wa-shington, in January, 1920, called by invitation of the Secretary of the Treasury of the United States and attended by the Latin Ameri- can Ministers of Finance and their associates. 12. Important far-reaching announcements, affecting Pan Ameri- can relations, including (a) that of Secretary of Commerce W. C. Redfield, pointing out new methods and opDortunities for increasing the exchange of products between the United States and Latin America; (b) that of Chairman E. N. Hurley of the United States FORWORD XI Shipping Board, outlining new passenger, mail and freight steamship service; (c) that of Assistant Secretary L. S. Rowe of the Treasury- regarding the Second Pan American Financial Conference in January, 1920; (d) that of President Charles M. Schwab of the Bethlehem Steel Company, stating his absolute confidence in the business possibilities and integrity of the Latin American Republics ; (e) that of President Frank A. Vanderlip~of the National City Bank of New York, that the American republics could and should avert impending industrial catas- trophe in Europe by supplying raw materials necessary for European industries; (f) those of Latin American ambassadors, ministers, and delegates, including Sefior Beltran Mathieu, Ambassador of Chile, Senor Francisco Tudela y Varela, Ambassador of Peru; Seiior Ignacio Calderon, Minister of Bolivia, and others, sincerely welcoming closer commercial and financial relations with the United States. If after reading or consulting this report of the Second Pan American Commercial Conference, anyone desires further information whidh can be provided by the Pan American Union, as the official international organization and bureau of information of the American Republics, he is cordially requested to consult by interview or correspondence its ever ready staff and otherwise to make use of its numerous facilities for promoting practical Pan Americanism. In this connection, the Director General invites attention to two papers in the Appendix. One of these carries the title of "Practical Pan Americanism" and -he other is the "Annual Report of the Director General of the Pan American Union." As a final word he thanks Professor Julian Moreno-Lacalle, the Recording Secretary of the Conference, for his able assistance in editing this report of the Proceedings. PAN AMERICAN UNION. The Pan American Union is the official international organization of the 21 independent governments of the Western Hemisphere. It was originally organized under the name. of "The Bureau of the American Republics" at the first Pan Ameri- can Conference, held at Washington in 1889-90. It was continued by the Second Conference, held at Mexico City in 1901-2 ; reorganized at the Third Conference, ' held at Rio de Janeiro in 1906, and again continued, with its name changed to "Pan American Union," by the Fourth Conference, held at Buenos Aires in 1910. It is supported by the joint quotas of the American governments, based upon their popu- lation. It is controlled by a governing board, composed of the Secretary of State of the United. States, who is its chairman ex officio, and the diplomatic representa- tives in Washington of the other American Governments. Its affairs are adminis- tered under this board by a director general and an assistant director elected by them and responsible to them. They, in turn, are assisted by a staff of experts in Pan American relations, including statisticians, trade advisers, editors, librarians, translators, compilers, and others. The principal purpose of the organization is to promote friendship, good understanding, intercourse, commerce and trade, and, through these agencies, permanent peace among them all. Tl^at it has beeh .success- ful in these respects, is proved by the fact that since the Pan American Union was first organized there has been no serious conflict between any two American republics. The Pan American Union has a practical up-to-date library, known as the "Columbus Memorial Library," of 40,000 volumes, in which are kept the official reports and descriptive publications relating to all the Latin American countries, indexed, in turn, with 160,000 information cards. It has a collection, of 25,000 photographs, 1,500 maps, 110 atlases, and receives regularly 1,200 Latin American newspapers and other publications. It publishes an illustrated Monthly Bulletin, with editions in English, Spanish, Portuguese, and French, of which nearly 200,000 copies were distributed last year. It prepares and distributes descriptive regular and special reports and pamphlets containing general and particular data about each of the American Republics, and its mail room handled in the last fiscal year 500,000 pieces of mail received and sent out. The Pan American Building and Grounds, dedicated in 1910, and repres&t- ing an investment of $1,100,000, were made possible through the generosity of Mr. Andrew Carnegie and the pro rata contributions of all the Americfin Republics. It is open to visitors every week day from 9.30 A. M. until 4 P. M., when its library, information files, exhibits, and experts are always accessible to those seeking information on Pan American topics. Since the Pan American Union was reorganized in 1906, Pan American com- merce has grown from less than $500,000,000 to approximately $1,750,000,000. RESOLUTION OF THE GOVERNING BOARD OF THE PAN AMERICAN UNION AUTHORIZING THE CALL FOR THE SECOND PAN AMERICAN COMMERCIAL CONGRESS. At the regular meeting of the Governing Board of the Pan American Union held on the 9th of April, 1919, a committee, consisting of His Excellency Ignacio Bonillas, Ambassador of Mexico, His Excellency Dr. Santos A. Dominici, Minister of Venezuela, and His Excellency Dr. Rafael H. Elizalde, Minister of Ecuador, appointed to report on the calling of a Pan American Commercial Conference of an unofficial and purely informative character, proposed by the Director General at the meeting of the Governing Board held on March S, 1919, submitted the fol- lowing recommendations for the approval of the Board: 1. The advisability of holding in the Pan American Union during the latter part of May or the beginning of June of this year a Pan American Commercial Conference having the same unofficial character as the one held in the same build- ing in February, 1911. 2. The authorization of the Director General to issue, on behalf of the Governing Board, the proper invitations, wherein it shall be stated that the Con- ference has not official character, and to prepare the proper program, following the precedent established for the first conference. 3. Requesting the active cooperation of all the members of the Governing Board in order to give more prestige and interest to the Conference, a report of which shall be made for publication in due course. In making these recommendations the committee not only gives its support to the Commercial Conference suggested at the meeting of the Sth instant by the Director General, but also believes that it would be of great advantage to call another conference on a larger scale and of a more formal character after peace has bieen completely re-established in the world, in order to secure the attendance of the greatest number of representatives of the commerce of all the countries of the Pan American Union. These recommendations were unanimously approved. THE ORIGINAL CALL FOR THE SECOND PAN AMERICAN COMMERCIAL CONGRESS. The Governing Board of the Pan American Union has authorized the Direc- tor General to call an informal or unofficial Pan American Commercial Conference^ to be held at the Pan American Building in Washington, D. C, from June 3 to 6^ 1919. He, therefore, submits the following: 1. The Governing Board, recalling the success of the first Pan American Commercial Conference held under the auspices of the Pan American Union in. February, 1911, and having in 'mind the great present interest in Pan American trade, believes that much good should result to all concerned — governments, or- ganizations, firms and individuals — from another informal but comprehensive ex- change of views and information between the official and unofficial commercial representatives, trade experts, business men and other interested parties of both. North and South America. 2. Among those to be invited to attend and participate will be the follow- ing: (a) the diplomatic, consular and special commercial and financial representa- tives and experts in the United States of the Latin American governments; (b) representatives of Latin American firms and houses, unofficial Latin American, experts, and other Latin Americans interested who are now in the United States ; (c) such other representatives of Latin American governments, commercial organi- zations and firms as may be able to attend ; (d) the officials and experts of the different departments and bureaus of the United States Government having to do' with Pan American economic, financial and commercial relations; (e) commercial and trade organizations, or representatives thereof, institutions, business firms and bouses, and individuals, in the United States, directly interested in Pan Americm trade. 3. In order to do justice to all countries concerned and to the numerous- important phases of Pan American commerce, general and special sectional sessions will be held, beginning with the Inaugural Session at 10 A. M., Tuesday, June 3,. and continuing morning, afternoon and evening of the following three days, June 4, S and 6. Except for this inaugural session and certain special occasions, all papers and addresses will be limited in the reading or delivery to ten minutes (with opportunity, under limitations, of extension in the printed proceedings) to be fol- lowed by a general discussion, questions and answers, open to all. By this method of procedure, it is intended to make the Conference always practical, interesting and instructive, and give everybody an opportunity to obtain the information desired. 4. It is hoped that the President and Secretary of State of the United States will return to America in time to speak at the inaugural session. Other addresses at general sessions will be made by Members of the Cabinet, Latin American Am- bassadors, Ministers, and Consuls, leaders .of activities in the commercial, financial, and economic development of Pan America, and recognized international trade experts. 5. While there will be no formal or required charges or fees for registra- tion, attendance and participation, each person (excepting government officials) who desires to be placed on the list to receive one cloth-bound copy of the printed proceedings (which obviously should be the most complete and comprehensive up-to-date review and text book on Pan American Commerce illustrated with maps, charts and diagrams, yet pubHshed) can do so by subscribing three dollars, in advance, to cover cost of preparation, with the privilege, limited to such subscribers. of securing additional paper-bound copies at one dollar. Checks should be made payable to "Chief Accountant, Pan American Union." 6. All persons wishing to attend this conference will please notify the under- signed as soon as possible, as per enclosed card, giving accurate information as to name, address, business or occupation, and whether desiring copies of the printed proceedings or not. Any suggestions, moreover, as to subjects to be discussed, available experts, and those to be invited will be welcomed. The Conference is intended to be a period of intensive study of Pan American commerce, and it is hoped that all persons who plan to be present will do so with the thouglif of con- stant attendance and participation at the sessions through the week until final ad- journment. JOHN BARRETT, Director General, Pan American Union, May 10, 1919. Washington, D. C. SPECIAL SUPPLEMENTARY NOTICE. Since the accompanying circular was printed, the inaugural session of the Second Pan American Commercial Conference, held under the auspices of the Governing Board of the Pan American Union, which was to have taken place Tuesday morning, June 3, has been advanced to Monday afternoon, June 2, in order to suit the convenience of the Vice President, who will extend a welcome to the delegates on behalf of the United States, but who will be absent from Washington on Tuesday. This session will be called to order by Director General Barrett and presided over by Hon. Frank L. Polk, Acting . Secretary of State and Acting Chairman of the Governing Board of the Pan American Union. The other speakers will be Senor Don Beltran Mathieu, the Ambassador of Chile, Senor Don Ignacio Calderon, the Minister of Bolivia; Hon. F. H. Gillett, Speaker of the House of Representatives ; and Hon. H. L. Ferguson, President of the Chamber of Com- merce of the United States. May 24, 1919. GOVERNING BOARD OF THE PAN AMERICAN UNION. Frank L. Polk, Acting Secretary of State of the United States, Chairman ex officio (in absence of Robert Lansing, Secretary of State). Ygnacio Bonillas, Ambassador of Mexico (absent). Beltran Mathieu, Ambassador of Chile. Francisco Tudela y Varela, Ambassador of Peru. Ignacio Calderon, Minister of Bolivia. Carlos Manuel de Cespedes, Minister of Cuba. Santos A. Dominici, Minister of Venezuela. Rafael H. Elizalde, Minister of Ecuador. Carlos Adolfo Urueta, Minister of Colombia. Luis Galvan, Minister of the Dominican Republic. Diego Manuel Chamorro, Minister of Nicaragua. Manuel Gondra, Minister of Paraguay. Charles Moravia, Minister of Haiti. Salvador Sol M., Minister of Salvador. Federico M. Quintana, Minister and Charge d'Aflfaires of Argentina. J. E. Lefevre, Charge d'Affaires of Panama. Alberto de Ipanema Moreira, Charge d'Affaires of Brazih Hugo V. de Pena, Charge d'Affaires of Uruguay. Francisco Sanchez Latour, Charge d'Affaires of Guatemala. R. Camilo Diaz, Charge d'Affaires of Honduras. Sub-Committee of Governing Board of the Conference Ygnacio Bonillas, Ambassador of Mexico (in absence, represented by Juan B. Rojo, Counselor of Embassy). Santos A. Dominici, Minister of Venezuela.' Rafael H. Elizalde, Minister of Ecuador. EXECUTIVE OFFICERS OF THE PAN AMERICAN UNION. John Barrett, Director General. Francisco J. Yanes, Assistant Director. Franklin Adams, Chief Clerk (absent). William A. Reid, Acting Chief Clerk. Special Assistants to the Director General for the Conference John Vavasour Noel, First Assistant and Secretary. Henry L. Sweinhart, in Charge of Publicity. Prof. Julian Morena-Lacalle, Recording Secretary. Dr. H. E. Bard, Assistant. Dr. Jose Romero, Assistant. Gladys Russell, Official Reporter. STAFF OF THE PAN AMERICAN UNION Members of the Staff assisting for the Conference who were ready to give information and otherwise serve those in attendance. John Barrett, Director General. Francisco J. Yanes, Assistant Director. W. A. Reid, Acting Chief Clerk and Trade Adviser. William C. Wells, Chief Statistician. . Matilda Phillips, Assistant Statistician. C. E. Albes, Acting Editor, English Bulletin. Angel C. Rivas, Acting Editor, Spanish Bulletin. Virginia H. Wood, Disbursing Officer. D. Arbelia Reed, Assistant to Disbursing Officer. R. G. Koenig, Assistant to Disbursing Officer. Charles E. Babcock, Acting Librarian. Maria D. Calvo, Assistant in Library. William Mahoney, Assistant in Library. W. P. Montgomery, Translator and Compiler. W. V. Griffin, Secretary to the Director General. Helen L. Brainerd, Secretary to Assistant Director. Hortense Haas, Assistant to Secretaries. Jose M. Coronado, Spanish Translator. Joaquim De S. Coutinho, Portuguese Translator. Langworthy Marchant, Portuguese Translator. Alexandre Michelet, French Translator. William J. Kolb, Chief of Mail Room. George F. Hirschman, Assistant in Mail Room. Charles Columbus, Assistant in Mail Room. Madeline S. Kavanagh, Chief of File Room. William Manger, Assistant in File Room. Manuel B. Montes, Assistant to Chief Clerk. H. C. Snodgrass, Assistant to Chief Clerk. H. R. Mills, Assistant to Chief Clerk. Blanche Dunnington, Assistant to Chief Clerk. Marjorie Miller, Assistant to Chief Clerk. Helen V. Smith, Assistant to Chief Clerk. Stanley M. Provost, Assistant to Chief Clerk. Buildings and Grounds J. Walton Barrett, Superintendent of Buildings and Grounds. H. Burkholder, Engineer. Harry F. Davison, Charles E. Leland, Guides. James Whitehill; C. W. Bedford; Wm. Betters; B. Brent; F. Butler; G. Chappelle; E. Deviny; T. Gill; E. M. Knight; W. F. Kuhnert; Geo. A. Mathieson; Corlies B. Taylor; W. H. Taylor; Wm. Wiener. Messenger Force John M. Butler ; Marcel Cordove ; James Davis ; S. H. Edmondson ; Frank E. Hearns ; Henson Hicks ; F. D. Keesee ; H. T. King ; Francis Pree ; H. Randolph ; John Sims ; F. D. Wilkinson ; Clarence P. Williams. Temporary Staff — Aides for the Conference R. M. Bartleman ; Margaret N. Bobb ; A. R. Burch ; Mildred Dean ; Alice M. Heaven ; Anne L. O'Connell ; Joseph Sarbin ; Carmen Stuart ; Agnes Quigley. SUMMARIZED EXTRACTS FROM THE PROGRAM OF THE CONFERENCE. Reason and Purpose of the Conference In February, 1911, there was held the First Pan American Commercial Con- ference, called under the auspices of the Pan American Union. The announcement of it said : "The purpose of this Pan American Commercial Conference is to con- sider the actual and practical business conditions surrounding the exchange of commerce and the development of trade between the United States and the other American countries." It was attended not only by official and unofficial representa- tives of all the American countries but of the principal commercial organizations and the leading exporting, importing and shipping firms of the United States and numerous individual business men and others of both North and South America. In view, first, of the great practical good and actual impetus to Pan American commerce which resulted from this First Conference ; second, of the new after- the-war conditions surrounding present and future Pan American commerce ; third, the rapidly growing widespread interest in it throughout both North and South America; fourth, the obvious necessity and advantage of having a full, free, and comprehensive exchange of information and opinions on the subject; and, fifth, the suggestions 'favorable to such a Conference coming from representative men of both North and South America, the Governing Board authorized the holding of this informal Second Pan American Commercial Conference and instructed the Director General to send out invitations accordingly. It is hoped that the same good will result from it as did from the First Conference of eight years ago. That the action of the Governing Board struck a responsive chord among both official and unofficial commercial, financial and general business interests of both North and South America is proved by the response that has come to their invitations. When this program went to press Saturday night. May 31, over one thousand actual recorded acceptances had been received. Rules for the Conference 1. In view of the fact that the Conference is informal but called by the representatives of all the American Governments, discussions affecting or criticiz- ing their political or governmental policies will be strictly out of order and so ruled by the presiding officers. 2. As the Conference is one purely of invitation, where the Governing Board and executive officers of the Pan American Union are acting as hosts, there will be no regular formal organization of the Conference beyond that arranged under the general direction and charge of the sub-committee of the Governing Board and the Director General. 3. Because of the impossibility of committing the Governing Board or the Governments represented by them to. any particular line of action, no resolutions will be presented or discussed beyond those of a complimentary and courteous character. 4. In the discussions of the subjects or topics of the Conference all addresses and papers will be strictly limited to ten minutes, except in the case of a few gen- eral addresses, and participants inill please accept the ruling of the presiding officer without protest or feeling of discrimination. The purpose of this rule is to provide opportunity for a general discussion by those in attendance and to give fair treatment to all participants and all subjects. It is, however, to be noted, that those reading papers or making addresses and engaging in the discussions are requested to extend their remarks in the printed proceedings, subject to reasonable limitations. Trade Advisers Several members of the regular staff of the Department of State and the Bureau of Foreign and Domestic Commerce, Department of Commerce, including trade experts and commissioners, commercial attaches, diplomatic and consular officers, have kindly consented to give advice in trade matters wherever possible. Their headquarters are in the regular office of the Director General at the south end of the main corridor, second floor. In this room is a box in which inquiries to be answered can be placed. Aa officer will be in attendance to make engage- ments for consultation. Department of State The following officers of the State Department will attend the Conference and have kindly consented to participate in tlje discussions and give expert advice: Julius G. Lay, Foreign Trade Adviser. Charles Albrecht, Assistant to Foreign Trade Adviser. Drew Linard, Assistant to Foreign Trade Adviser. Dr. W. F. Willoughby, Regional Economist for Latin America. Dana Munro, Economist for Mexico and Central America. W. R. Manning, Economist for Latin America. Department of Commerce — Bureau of Foreign and Domestic Commerce The following officers of this bureau will attend the Conference and have Icindly consented to participate in the discussions and give expert advice : Dr. Burwell S. Cutler, Chief of Bureau. Grosvenor M. Jones, First Assistant Chief. C. A. McQueen, Chief of Latin American Division. Dr. R. S. MacElwee, Second Assistant Chief. Dr. W. E. Dunn, Assistant Chief of Latin American Division. Dr. F. R. Rutter, Statistical Adviser. L. Domeratzky, Tariff Expert. Robert S. Barrett, former Commercial Attache at Buenos Aires. W. W. Ewing, Trade Commissioner and Expert on Construction Materials. H. C. Everly, Trade Commissioner and Expert on Furniture, etc. Special Advisers The following experts also will attend the Conference, participate in the ■discussions, and have kindly consented to give advice in answer to inquiries : William E. Aughinbaugh, Editor, the "New York Commercial," New York •City. Dudley Bartlett, Chief, Foreign Trade Bureau, Commercial Museum, Phila- delphia, Pa. David Beecroft, Directing Editor, "The Class Journal Company," New York City. John Clausen, Vice President, in charge Foreign Department, Chemical National Bank, New York City. Chas. L. Chandler, Manager, Foreign Trade Department, Corn Exchange National Bank, Philadelphia, Pa. Frederic M. Halsey, Foreign Department, National City Co., New York City. Rea Hanna, Gaston, William & Wigmore, 63 Broadway, New York City. C. E. McGuire, Assistant Secretary, International High Commission, Treas- ury Department. J. J. Nordman, Pittsburgh, Pa. Charles M. Pepper, Journalist, Chile and Northern News Association, Wash- ington, D. C. ' Frutos Plaza, Manager, Foreign Department, Montgomery, Ward and Co., ■Chicago, 111. A. R. Rea, Fairbanks, Morse & Co., New York City. Guillermo A. Sherwell, Juristic Expert, International High Commission, Treasury Department. J. J. Slechta, Holt & Co., New York City. G. Cornell Tarler, First Secretary, American Embassy, Rio de Janeiro. • Edward W. Ames, American Steel Export Co., New York City. Dr. H. E. Bard, Secretary Argentine-American Chamber of Commerce, New York. John S. Prince, Secretary Pan American Society of the United States. Charles F. McHale, National City Bank, New York. Paul Butler, J. W. Butler Paper Co., Chicago, 111. Missing Page Hon. Martin Behrm^n, Mayor of New Orleans. Dn Grosvenor M. Jones, Assistant Director, Bureau of Foreign and Domestic Commerce. George L. Duval, of Wessel, Duval & Co. Hon. John McDuffie, Representative in Congress from Alabama. Augustus Post, Secretary, Aero Club of America. Captain Charles J. Glidden, Air Service, U. S. A. Captain Max L. McCuUough, Air Service, U. S. A. Afternoon Session Called to order at 2.45 P. M. by Director General Barrett, presiding. Trading Methods for Both Exporting and Importing, Business Ethics, Mer- chandising, Commission Service and Direct Trade, Export and Import Com- binations, and Weights and Measures, Etc. — Papers and Addresses by — Dr. Burwell S. Cutler, Chief, Bureau of Foreign and Domestice Commerce, Department of Commerce. Seiior Carlos Arellano, of Mexico. E. T. Simondetti, John W. Thorne & Co., New York. C. A. McQueen, Chief, Latin American Division, Bureau of Foreign and Domestic Commerce, Department of Commerce, Washington, D. C. Dr. William Notz, Export Trade Division, Federal Trade Commission. Benjamin Catchings, Counselor at law. New York and Washington. Dr. George F. Kunz, President, American Metric Association, New York ; paper read by H. Richards, Jr., Secretary of the Association. F. A. Halsey, Commissioner, American Institute of Weights and Measures, New York. Open Session — Remarks by — Wing B. Allen, Publisher, "The South American," and "El Norteameri- cano," New York. Mrs. Joan Calley, All America Film Service, Washington, D. C. Ernest Alpers, General Drafting Company, New York. Henry E. Coronado, Goodyear Rubber Company, Akron, Ohio. Carlos F. McHale, National City Bank, New York. Arthur B. Farquhar, A. B. Farquhar Company, York, Pa. Evening Session ~\ Called to order at 8.30 P. M. by Director General Barrett, presiding. Open Session — Remarks by — R. M. Whitney, Associated Press, Washington, D. C. Senor Enrique Gil, Counselor at law, Buenos Aires and New York. Senhor J. C. Alves de Lima, Consul General of Brazil at large, New York. Richard C. De Wolf, Counselor at law, Washington, D. C. Parcel Post, Patents, Trade Marks,_ and Copyrights, Consular and- Other Trade Regulations, Packing, Etc. Hon. Otto Praeger, Second Assistant Postmaster General. Senor Frutos Plaza, Foreign Department, Montgomery Ward & Co., Chi- cago, 111. Dr. Mario Diaz Yrizar, Director, International Trade Mark Bureau, Habana, Cuba. , Hon. James R. Newton, U. S. Commissioner of Patents. Seiior V. Gonzales, Trade Adviser, The Mercantile Bank of the Americas, New York. F. B. Purdie, R. G. Dun & Company, New York. Dr. Frank Rutter, Statistical Adviser, Bureau of Foreign and Domestic Commerce. Motion pictures of Latin America. THURSDAY, THE Sth MoKNiNG Session Called to order at 10 A. M. by Director General Barrett; Dr. Leo S. Rowe, Assist- ant Secretary of the Treasury of the. United States, presiding. Financing Trade, Investments, Loans, Including Banking, Credits, Govern- ment Aid to Commerce, Etc. — Papers and Addresses by — Dr. Leo S. Rowe,. Assistant Secretary of the Treasury. Frank L. Vanderlip, President, National City Bank, New York City. Senor Augusto Villanueva, President, Banco de Chile. Charles M. Schwab, President, Bethlehem Steel Company. Senor Julio Zamora, Financial Agent of the Bolivan Government. Julius G. Lay, Foreign Trade Adviser, State Department. H. H. Merrick, President, Chicago Association of Commerce. Afternoon Session Called to order at 3 o'clock by Director General Barrett; Mr. H. C. Parmelee, presiding. Engineering Aids to Commerce, Including Railways, Highways, Waterways, Harbors, Irrigation, Sanitation, Etc. — Papers and addresses by — Howard C. Parmelee, Editor, "Chemical and Metallurgical Engineering," New York. Major George A. Soper, Surgeon General's Office, U. S. Army. Percival Farquhar, New York City. Sefior F. P. de Hoyos, General Agent, National Railways of Mexico. Discussion. Charles Whiting Baker, Consulting Engineer, New York City. J[3harles F. Lang, President, Lakewood Engineering Corporation, paper read by Mr. Lloyd Brown, Vice President. Dr. Walter C. Kretz, John Roebling Company, New York. Discussion. Verne L. Havens, Editor, "Ingenerfa Internacional," New York. Discussion. Evening Session Called to order at 8.30 P. M. by Director General Barrett, presiding. General Session for Subjects Postponed or not Classified — Herbert S. Houston, Editor, "La Revista del Mundo,'' New York. Senor Pedro Rafael Rincones, Consul General of Venezuela in New York. Captain H. R. Moody, Packing Service, U. S. Army. Discussion. Frederick L. Hoffman, Third Vice President, Prudential Insurance Com- pany, Newark, N. J. Leon Bensabat, American Chamber of Commerce, Rio de Janeiro. Dr. Peter H. Goldsmith, American Association for International Con- ciliation. Motion pictures of Latin America. FRIDAY, THE 6th Morning Session Called to order at 10 A. M. by Director General Barrett; Mr. John Vavasour Noel, presiding. Commercial Intelligence, Including Advertising and Pubucity, and News- papers AND Periodicals, Etc. — F. B. Noyes, President, Associated Press. W. W. Davies, Representative of "La Nacion" of Buenos Aires. A. C. Pearson, President, Associated Business Papers. John L. Merrill, President, All Americas Cable Company. Senor Alfredo vdH. Collao, Publisher of "La Prensa," New York. John Vavasour Noel, President, Noel News Service. Afternoon — Closing Session Called to order at 2.30 P. M. by Director General Barrett, presiding. Educational and Social Auxiliaries to Commerce, Including Vocational Train- ing, Language Study, Exchange of Students and Professors, and General Influences, Etc. — Seiior Francisco J. Yanes, Assistant Director, Pan American Union. Discussion. Dr. Roy S. MacElwee, Second Assistant Director, Bureau of Foreign and Domestic Commerce. Dr. Samuel McClintock, Federal Agent for Educational Foreign Trade and Shipping. Dr. W. E. Dunn, Assistant Chief, Latin American Division, Bureau of Foreign and Domestic Commerce. Dr. Luis F. Corea, Vice President and Treasurer, K-P Corporation, New York. Miss C: E. Mason, President, Pan American Round Table, Tarrytown, New York. i Mrs. Glen L. Swiggett, Secretary, Woman's Auxiliary Committee, Pan American Scientific Congress. Professor J. Moreno-Lacalle, Assistant Professor of Spanish, Uj S. Naval Academy. Dr. S. M. Johnson, State Highway Commissioner of New Mexico. Hon. Breckenridge Long, Third Assistant Secretary; of State. Dr. H. E. Bard, Secretary, Argentine-American Chamber of Commerce, New York City. Review of the Work of the Conference By — Director General Barrett. Evening— 9.30 P. M. Reception and Garden party, given by the Governing Board in honor of those in attendance at the Conference, including ladies and guests, in the Hall of the Americas arid the Aztec Garden of the Pan American Building and Grounds. O ■< z ^ c- <, M OJ p:: •^' w in 5 ^ o Z QJ f^6 X H r; f/J kJ o - < £ g oC' "" s 0\ 2 % o ^ 1-. ,* 03 Z o :dU OJ z z 5 -< "^ ^ rt E '-^^ -o s s << O ^ a ■£ o o H SECOND PAN AMERICAN COMMERCIAL CONFERENCE MONDAY, JUNE 2, 1919, AFTERNOON— INAUGURAL SESSION. The Inaugural Session of the Second Pan American Commercial Conference was called to order at 4:20 P. M. June 2, 1919, by John Barrett, Director General of the Pan American Union, in the Hall of the America-s, Pan American Union, Washington, D. C. In the absence of the Acting Secretary of State, Honorable Frank L. Polk, The Assistant Secretary of State, Honorable William Phillips, pre- sided over the session. DIRECTOR GENERAL BARRETT: Ladies and Gentlemen: The Governing Board of the Pan American Union, composed of the Secretary of State of the United States and the diplomatic representatives of the other American Republics, has seen fit to call this Second Pan American Commercial Conference for the pur- pose of providing an opportunity for a full and free exchange of information and opinions regarding the development of Pan American Commerce. A Sub^Committee of the Board, composed of the Ambassador of Mexico (represented in his absence by the Counselor thereof), the Minister of Venezuela, and the Minister of Ecuador, have instructed me, as the executive officer of the organization, to call this meeting to order and to present to you as the presiding officer, who will now take charge of the meeting, The Assistant Secretary of State of the United States, Honorable William Phillips. THE ASSISTANT SECRETARY OF STATE OF THE UNITED STATES: Mr. Vice President, Your Excellencies, Ladies and Gentlemen: In the absence of the Acting Secretary of State, and therefore as temporary Acting Chairman of the Governing Board of the Pan American Union, it becomies my privilege and agreeable duty to preside at this Inaugural Session of the Second Pan American Commercial Conference. It is a gratification and an inspiration to see that so many practical men of affairs have responded to the invitation of the Governing Board to discuss ways and means to carry into effect the new spirit of Pan Americanisfn. On behalf of the Board I bid you all a cordial and hearty welcome. The First Pan American Commercial Conference was held in the year 1911, since which time events of stupendous importance have changed the map of the world and greatly affected the relations of nations. The old world of 1911 has disappeared and out of the anguish of the war there has been born a new spirit of justice, which is even now struggling to take form and expression. Although the western hemisphere has suffered it is almost untouched as compared with the war- worn peoples of Europe and the Near East. Is it not therefore the duty of the Americas to demonstrate that the new era of justice and square dealing has come and that the Republics in this hemisphere are carrying out their ideal of a better world in a helpful and practical manner? In the days of 1911 we still strove to reach our mutual understandings to a great extent through the medium of international politics. Today we realize that there are agencies far more appropriate through which international relations may be developed and strengthened. The most powerful agency of all for drawing nations together is that of foreign commerce when it is conducted in a spirit of helpfulness and fairness; in -this spirit commerce carries with it mutual esteem and binding • friendship among nations and incidentally an ardent desire for firmer friendship and closer commercial ties. We have called you together, therefore, in order that we may frankly discuss face to face business that will be to our mutual advantage. We in the United States must realize, as pointed out by a distinguished South American statesman, that the purchaser is entitled to what he wants, not what he should want in the opinion of the seller, and that the terms of sale should be acceptable to the pur- chaser as well as to the vendor. 1 2 SECOND PAN AMERICAN COMMERCIAL CONFERENCE Another agency which we must use in order to carry out the ideal of Pan Americanism is the exchange of thought among men of learning in different coun- tries. No nation must adopt a self satisfied attitude of "know it all," but rather each should strive to cultivate the friendship of men of affairs and ideas in other countries, and through the miedium of knowledge reach a higher plane of Iwng. I believe, gentlemen, that this Conference is imbued with a spirit of the times and that whatever project it considers the idea of fair play and benefit to all the people of this hemisphere will prevail. I cannot, therefore, _ overemphasize the interest of the Department of State in its proceedings; for it is you — rather than the Government— who have the responsibility of vitalizing the new opportunities -offered to you and of giving practical expression to the new spirit of international justice. In your important labors you can count upon the enthusiastic cooperatioin of every member, of the Department of State and of all. the Departments of this Government. It gives me very, great pleasure to present to you one who will bid you welcome on behalf of the Government, who by reason of his exalted office, his charm and has great, rare gift of speech, is peculiarly qualified to do so. I have the honor to present the Vice President of the United States. THE VICE PRESIDENT OF THE UNITED STATES: Mr. Secretary, Your Excellencies, Ladies and Gentlemen: There was a time in the far distant history of the past of the republic of the United States when it was said that in wine there is truth. That, I gtiess, will never again be uttered in America !' If that be so, I think I am justified in saying that in the lack of preparation, however simple the words I may utter, they may claim to be sincere. The war through which we have just passed has brought into prominence one so-called great doctrine of the American Republics, — the Monroe Doctrine, — and whether we shall or whether we shall not have a League of Nations (for that is on the knees of the gods — if the Republican Party be the gods of this country), still there has been enough of discussion about the Monroe Doctrine to clarify_ it, I hope, in the mind of every representative of Latin America here today. I think it was and I think it will fontinue to be a good doctrine so long as it only means this: That we object to any change in the form of government by any foreign nation, because we look upon it as dangerous to the continual glory and honor of the United States of America, as dangerous to our own 'form of government. But I hope that the discussion has removed forever from' your minds the idea that the Monroe Doctrine ever was intended to mean that the United States of America was guardian of the western hemisphere and that you were simply the wards of the United States of America. I hope that has disappeared forever and that, as you progress in the discussions of this most valuable Commercial Conference, you will realize that the attitude of the United States of America is that of a brother, not that of a big brother who' is going to tell you what you can and what you cannot do, but simply a brother who wishes you well in the administration of your own internal affafrs. I speak that with the utmost sincerity, because I imagaine that you. men are very much like myself. I am willing to be helped any time on earth but I am wholly unwilling to be "bossed" any time on earth ! It is idle to disguise from your minds the fact that back of all the other alleged causes of war, the commercial relations of people have as much to do with it as anything else. Whether there is to be a League of Nations or not — I say I cannot tell you, it is not for me to settle (I am a disfranchised membeKof the United States Senate and if ever I wage a warfare to enfranchise anybody I am going to wage a warfare to enfranchise myself before I begin on enfranchising anybody else) — this I think can be done which) will measurably help forward that long desired peace of the world. I think that in this Conference you can, if you will, get together and adjust the trade relations between the United States and the other Republics of the western hemisphere in such a way that there will be no friction between us and you, and, if you will do that, you will very measurably have helped forward that glad time when swords shall be beaten into plowshares and spears into pruning ho.oks. I understand, of course, that this Conference is very largely business in its character, but business no longer in the world can be disassociated from the right MONDAY — INAUGURAL SESSION 3 and the wrong of human life, and, in all these business arrangements which you are seeking here to make among the Republics of this Continent, let it be under- stood that while you want to promote business, you want above all to foster peace, amity and concord between the Republics of the western world. Ulterior influences are at work already to prevent the present friendly rela- tions of these nations from continuing. I was stocked the other day — to mention one single instance — to observe that it had been freely given out to the citizens of Brazil that it was the purpose of the United States Government to take Brazilian bonds in payment of the indebtedness of France and England to the United States of America, with the express purpose of making Brazil a ward of the Government of the United States ! Now, whether anybody else in America will deny that or not, I am going to deny.it. I say it is not so! I say this Government has no power to do it and it has no purpose of doing it, and, if it tried to do it, it would have to get the consent of the Speaker of the House of Representatives before it ever was done ! So let that go down as being a falsehood with reference to the purposes and intentions of this Government of ours. When those of you who have not lived in the United States of America arrive here, you will find out that the Government of the United States is a little bit different from any other government on earth. The men in authority do not have any power ! That is the remarkable thing about this Government. Govern- ments do not run anything here. Here is the place where the f)eople kick up their heels and do as they please, and here is the place where public opinion is the final arbiter of the destiny of the people of the United States of America. I am saying that because I want to put these other fellows in the class of the Vice President of the Utiited States. Let no Latin American Republic ever dream that any administration, whether Democratic, Republican, Socialist, or Prohibitionist in the United States can ever put a single one, of them under the guardianship of the United States of America until the public opinion of America has concluded that they are unfit to govern themselves, and nobody thinks that yet in this land of ours ! Gentlemen, beware of anybody who comes into your country just now and says to you that the United States is not your friend. We want you more than we ever wanted you before in our lives. We want to do business with you and I hope we have gotten this idea out of our heads that all w-e have to do is to fill up a shipload with American-made products, send them down to Central or South America and come back with a shipload of gold in its stead. I hope we have begun to reaHze that the only way we can do business with Central and South America is to barter our products for their products and their raw ntaterial, and I hope we will begin to use a great many of the products of Central and South America in the factories of the United States of America. ^ Not to be invidious about the products of South America nor to give one country an advantage over the other, I think I know of one thing that is going very speedily to appeal to a large number of American citizens. I observed the other day that in Paraguay they have a plant called mate and that it is a substitute for spiritus fortis, malt and intoxicating liquor, and that you can drink it and have a jolly good time and wake up the next morning without a headache ! ' vVell, gentlemen, if the rumblings I hear around the Capitol are correct, whether we buy anything else of South America or not, we are going to buy mate down there pretty soon ! Just one more .word. It was touched upon by the Secretary of State- I wish this Government of ours would make some arrangement to send to your great universities the sons of this republic for education, and I wish you would return your sons to America for education. Thus we could more surely cement the ties that bind us by a better understanding of your problems and have our problems understood by you — by education and learning, than in any other way. However, I am not here to give business men advice. I am only here just to greet you, in the name of my country that I love ; to salute you ; to express my faith and belief that my country has no ulterior motives in her dealings with you ; to voice the hope that we may know each other better that we have known ea'ch other in the past; to express the opinion that our trade and our friendship must go hand in hand in the years that are to come, and to give to you the sublime idea that, perhaps, after all, the peace of all humankind does not rest upon the remains of the war-stricken fields of Europe but in the judgment and conscience and heart of the free repubhcs and the free republicans of this western world. 4 SECOND PAN AMEEICAN COMMERCIAL CONFERENCE THE ASSISTANT SECRETARY OF STATE (Chairman) : The members of the Conference will be interested to know that five minutes ago, while the Vice Presi- dent was making his speech, I received a telegraphic dispatch from the Secretary ot State in Paris, dated today at noon, conveying a message from the President of the United States to the Conference. I will read that message. "The President desires me to convey to yoii the following message : 'Please greet the members of the Second Pan American Con- ference in my name and convey to them the following message : It is with genuine regret that I find myself unable to attend the Conference and to greet you in person. I am sure that the,memibers of the Gov- ernment who are in Washington will make you feel abundantly welcome, but I should have wished to express that welcome in person. We attach the highest importance to this Conference. Our hearts are set upon a perfect understanding between the Americans and the develop-' ment of relations which will be mutually beneficial not only, but will contribute to the sort of relations which promote peace and good will as well as prosperity. Pray accept my most cordial good wishes for the success of the Conference.' "Lansing." The Government of Chile has expressed its warm friendship for this country by sending as its Ambassador to the United States a man of high distinction and rare ability. Seiior Mathieu has occupied a very prominent position in his own country; not only has he served as a member of the National Congress but also in various cabinet positions. He has likewise been Minister Plenipotentiary to Bolivia, Ecuador, Peru and Central America and he has also been his Government's Delegate to the Pan American Conference held in Buenos Aires. Senor, Mathieu is the ranking diplomatic representative today in Washington of the . nations of the western hemisphere and in this high capacity will honor the Conference by addressing us at this time. '' THE AMBASSADOR OF CHILE: Mr. Vice President, Mr. Chairman, Ladies and Gentlemen: The fact is^-to speak frankly at the very outset — I have availed myself of the opportunity given me by the distinguished Director General of the Pan American Union, and have come here today, to bespeak your aid and support in the discharge of my diplomatic mission. y^ I think it was Louis XVIII's Minister of the Treasury who, in an address to pOTliament, said, "Give me a sound policy and I will give you sound finances." In the present times, by force of the new elements that are now entering into the rela- tions among peoples, that recommendation could be transposed, to read, "Give us^ sound and firm commercial ties and we will give you sound diplomacy." In the intercourse of nations, policies orientate in accordance with interests, moral as well as material, which to be fruitful must be inseparable. The security of justice, of good order, of good faith in the observance of agreements, are as indispensable as cheap production, or transportation or credit. Moral factors give I'ife to economic factors; indeed, if it were possible to condense those different moral elements into a single word, that word would be "Confidence." We must inspire and above all we must merit, confidence. But confidence is gained only through mutual acquaintance and frequent trade intercourse — two desirable ends sought to be achieved, as I understand, by these periodical reunions initiated and stimulated by the Pan American Union. Thus the Latin American here meets the Anglo-Saxon American for ex- change of idea and viewpoint; here the former is disabused of his distorted illusions concerning the greed, and what has come to be called the imperialism, of the Yankee, and here also the latter learns that -unreliableness, incurable indolence, and chronic disorder are not characteristic ailments of the Latin American Republics as so often represented. Neither imperiahsm nor anarchy is the 'reality ; these false conceptions are among the many fatal words that fix themselves in the mind and form general convictions that are exceedingly difficult to uproot. On our part — and I believe I speak for all Chileans— we wish to be known for our good points as well as for our defects, in order that we may profit by the former and correct the latter. No concrete business may issue out of the present MONDAY — INAUGURAL SESSION 5 reunion, but the delegates will at least go back to their business with fuller ideas and with a determination to know us better and accord to us more equitable judg- ments. The rest will be accomplished by their commercial activities pursued freely, according to their various ideas and methods, and for the mutual profit that con- stitutes the essence of every mercantile transaction. ^ Commerce needs no tutelage; the more it is left untrammelled the more favorable will be its growth and development through its own creative pow^ spurred on by the incitement to gain, by competition and even by the gratification of achievement. A general who conquers on the field of battle, through destructive forces, acquires no such glory as that which is achie^^ by ail inventor, or by a great captain of industry, through constructive work thaSMrings alleviation and betterment into the living conditions of the people. And ^" we see erected in our cities more statues to the former than to the latter, which, in my judgment, is an expression of popular thought erroneous and fatal to human happiness. Fulton and Edison, much more than Napoleon, have altered the course of humanity. Gentlemen: You belong to the army that constructs and consolidates, to the great army of well-meaning men who spread peace throughout the world. Your battle is fought in the field of labor wherein many virtues are constantly called into service. On that field your patriotism^ will shine; on that field the greatness of your nations will be maintained. These congresses of merchants may be likened to the general staffs of armies by which campaigns are planned. It is my earnest and concluding wish that your campaign may be crowned with success. THE ASSISTANT SECRETARY OF STATE (Chairman) : The Chairman of the Governing Board of the Pan American Union has received various messages from presidents and distinguished statesmen in our sister republics. I should like to read to the Conference some of these messages. (Reading) : From His Excellency Juan Luis Sanfuentes, President of Chile. Chairman of the Board of the Pan American Union. Please convey to the Commercial Conference, which is about to meet, my best wishes that the results of its deliberations may be beneficial for the strengthening of commercial relations between the countries of America. From His Excellency Marco Fidel Suarez, President of Colombia. Minister of Colombia, Washington. Please congratulate the Second Pan American Conference on my behalf and express to the delegates my best wishes for the success of their Jabors. From His Excellency Alfredo Baquerizo Moreno, President of Ecuador. Minister of Ecuador, Washington. Please say to the Chairman of the Governing Board of the Pan American Union : "I send my cordial greetings to the Second Pan American Conference now assembled at Washington under auspices of the Pan American Union. The people and Government of Ecuador look with great interest and cordiality upon all efforts towards the re- establishment of world commerce to normal conditions, and specially for the increase of our commerce with that of the United States. I congratulate the delegates who have come from all parts of our American Continent and trust that their labors may be crowned with the highest measure of success." From His Excellency Manuel Estrada Cabrera, President of Guatemala. Chairman of the Governing Board of the Pan American Union. On the inauguration of the Comrnercial Conference under the auspices of the Pan American Union I have the honor to tender that important gathering, through Your Excellency, my sincere congratula- tions and my fervent wishes for the brilliant success of its interesting labors, and for the improvement and expansion of the commercial rela- tions among the peoples of America. 6 SECOND PAN .AMERICAN COMMERCIAL CONFERENCE t From His Excellency J. A. Utrecho, Minister of Foreign Relations of Nicaragua. Chain-nan, Second Pan American Commercial Conference. On behalf of the Nicaraguan Government I am pleased to send to the Second Pan American Commercial Conference cordial greetings and expressions of my best desires for its success. From His Excellency Belisario Porras, ^President of Panama. Pan American Commercial Conference, Washington. With the return of peace, commercial activities will seek new fields and none more promising^than Latin America witW its rising population and unlimited quajjpj^s of raw materials. N6 doubt the present Pan American ComnrtFcial Conference will promote the new situation made brighter by the splendid achievement of the Panama Canal from whose shores I send you a word of greeting. From His Excellency Jose Pardo, President of Peru. Chairman of the Governing Board of the Pan American Union. On the inauguration of the Second Pan American Commercial Conference, I fervently hope that the resolutions adopted by it will insure the progressive development of commercial relations among the American countries, thus consolidating continental solidarity and bind- ing closer the ties uniting the nations of America. From His Excellency the Secretary for Foreign Affairs of Salvador. Minister of Salvador, Washington. Congratulate the Chairman of the Governing Board of the Pan American Union on behalf of my Government. From His Excellency Baltasar Brum, President of Uruguay. Chairman of the Governing Board of the Pan American Union. On the inauguration of the Commercial Congress which has been called under the patronage of your important organization, I beg to express rmy most earnest hope that the highest success may crown your important work. The further development of Pan American commercial relations will strengthen our efforts and is one of the factors which will contribute most effectively to the realization of the lofty Pan American ideals. From His Excellency V. Marquez Blistillos, Provisional President of Venezuela. Chairman of the Governing Board of the Pan American Union. Accept my congratulations on the meeting of the Commercial Conference which will consider the problems of Pan American com- merce and will contribute to the strengthening of the bonds of fra- ternity and economic solidarity among the peoples of America. We in this country are fortunate in having as the representative of Bolivia a man of great ability and a firm exponent and friend of Pan America. Sefior Calderon has been the representative of his Government in Washington for over fifteen years, during which time he has won the hearts of the men and women of this country. We know him to be a man of great intellect and broad sympathies, who represents his Government in the highest sense of that word. In view of his long residence here he is the dean of the Latin American Ministers in Washington and in this capacity will address the Conference. THE MINISTER OF BOLIVIA: Mr. Chairman, before commencing my few words of welcome to you, I beg to read a cablegram I received from my President : "I request you to convey to the Pan American Coirmiercial Con- ference at its inaugural session the greetings and adherence of the Bolivian Government to the noble spirit of American solidarity which it represents. t„ ' r- ' r- >, TosE Gutierrez Guerra. MONDAY — INAUGURAL SESSION 7 The Governing Board of the Pan American Union bids you a hearty welcome to this beautiful home of ours, where we meet now in a friendly spirit to discuss our common interests. I consider that the present Conference is somewhat different from the ordinary reunions of business men. The occasion on which we meet, the new era opened as a result of the momentous struggle to save and' preserve right, the .necessity of studying the changed political, economic and social situation of the world, give to our meeting a deeper and more significant meaning. The criminal and premeditated attempt to revive the mediaeval regime of military autocracy, awakened a universal protest particularly amongst the Republics of America. The United States true to its traditions entered into the contest calling to action all its enormous resources, and decisively contributed to the victory. Its citizen soldiers proved themselves true knights without fear of reproach. With unconquerable determination and courage they made the stars and the stripes onee more the emblem of victory and freedom. The share of the women of America in this crisis was no less commendable. Their heroic self sacrifices at home, in tTle hospitals and at the front; their constant devotion to the care of the wounded, biought them cheer and comfort. The United States came at once to the front as a leading nation, the representative of the gospel of popular rights. The unholy alliance of despotic monarchs crumbled down and a league of free nations, born at the inspiration of American ideals, came as the harbinger of peace. The last sur- vivors of autocracy entrenched in Germany, Austria and Turkey were swept away and new nationalities sprung up to life' and liberty. The world is alive with the spirit of freedom and right. We would fail to read the signs of the times if we thought that this 'great upheaval is merely political. Society is shaking from its foundations, and new hopes are being cherished every- where. Many years ago the so-called captains of industry used to express their conception of the relations of capital to the pijblic and to the wage earners in a way that showed the greatest contempt for the public and the worlonen. Today any man or corporation that would ignore the right of the public to a proper and just treatment, or expect that workingmen must be satisfied with whatever pay they are given, would be considered as an enemy of the community. The autocracy of capital is passing away. The rights of labor to receive a proper compensation freely and voluntarily agreed upon is now recognized without question. The people's right to demand the necessary attention to its comfort cannot be ignored. One of the most important results of the war is the changed situation of the United States from a debtor to a creditor nation. The significance of that fact in the economic relations of the Pan American Union is very important. The exports and imporffi from thfe Latin American republics to the United States have increased during the war at an astonishing rate Take for instance Bolivia; we see that from 1913 to 1917 the exports to this country jumped fri^ra two hundred and eighty thousand dollars to nearly twelve million dollars, while the exports from the United States to Bolivia incresaed from two and A half million dollars to sixteen and a' half millions. The problem is now whether this increase can be maintained and improved. My opinion is thiat the solution rests with the capitalists and business men of this country. Think of the variety of rich and useful products that Latin America pos- sesses and how little has so far been utilized. The world owes to America the most popular articles of food, such as potatoes, corn, cacao, medicinal plants like quinine, and coca, and yet the wealth of its secular forests and great valleys has hardly been touched. The wonderful river system of South America remains un- developed, notwithstanding that its utilization could bring exceedingly important and rich results. Gentlemen, let us imagine a steamer starting from the Lake region of the United States going down the mighty Mississippi, reaching the Gulf of Mexico, entering from there the mouth of the Orinoco river in Venezuela, and crossing through to the Amazon, that great inland sea of South America, coming out to the Atlantic at Para, Brazil, or by a short canal (that could be easily built) going into the river La Plata to anchor in BuenoS Aires or Montevideo after a journey of thousands of miles through the heart of the South American Continent and having visited every one of the southern Republics but Chile ! Nothing more wonderful could be imagined as scenery; neither could we find richer lands to exploit and develop. 8 SECOND PAN AMERICAN COMMERCIAL CONFERENCE The high plateau of the Andes is a treasure store of all kinds of minerals that for centuries, during the Spanish domination and after, furnished most of the silver and gold for the currency of the world and its adornment. ■Speaking specially of Bolivia, my country, I wish to call your attention to the great efforts we are making, partly with borrowed money and partly with our own small resources, to extend the railroads from the high plateau to our eastern forests and valleys, where all kinds of tropical products and extensive .gracing fields are awaiting the facilities of cheap and easy transportation to provide com- merce and industry with valuable products. Good roads and cheap means of transportation are, as you well know, the primary conditions for an increase of traffic and commerce. The demand and con- sumption of foreign goods require on the other hand the development of the pur- chasing power, which depends on the increase of products for sale and on the use of the natural resources of the country. In most cases scarcity of capital is a hindrance that impedes many undertakings which can only be carried through by the help of banking facilities. The United States is now in a position to provide the necessary capital for the construction of railroads and the development of the industries and resources of the southern nations, and, besides, to help them in their progress and to acquire economically the same preponderating position that its policy of right and justice has given it throughout the world. The investment of American capital would foster our common interests and contribute more than any other thing to the increase of commerce and of our friendly relations. I must remark in this connection that nothing has helped more to create a feeling of confidence and good will towards the United States in the other American Republics than the oft repeated declarations of President Wilson that this country has no other or ulterior aim concerning them than to help them in their develop- ment and respect their sovereignty and independence. The spirit of fair play and mutual consideration, free from all desire of superiority and nustrust, is, in all ordinary relations, a strong element of good will and confidence. The strength of the Pan American Union must be based on the same spirit of justice and mutual respect, excluding all selfish sentiments. It cannot be doubted that the war has brought us nearer to- each other. We feel the unity of our political principles, the absence of any cause of antagonism, and we also feel that the spirit of peace and brotherhood is growing stronger. While in the Old World, centuries of oppression have left amongst the new nations the seeds of hatred and all .manner of opposite tendencies — which even after the horrors of the war threaten to involve them in new struggles — we, in the New World, inspired by broader motives and by the desire of closer union, breathe an atmosphere of friendliness toward each other and all mankind. What the spirit of democracy means has been admirably and touchingly shown in this country when, full of sympathy for the suffering millions of many nations on the other side of the Atlantic, every one felt the call of the heart and out of the fullness of their love contributed millions in money, food and clothing to . alleviate the mdsery and distress of their starving fellow-beings. These noble deeds of charity, so creditable to the American people, enhanced many times the laurels won on -the field of battle. It is my earnest desire that the same spirit of friendly interest in our progress will preside over your discussions as to the means of fostering our commercial, relations and welfare, which we must appreciate as something more durable than material gains. We all feel that there are higher and nobler aims; we dream of happiness, of peace, love and good will amongst all men, and finally hope for that eternal bliss where God is Supreme. THE ASSISTANT SECRETARY OF STATE (Chairman): We in this country look to Congress for all good things — for sympathy, for encouragement, for guidance and for actual support in those things that pertain to the welfare of this country. Congress is the heart of our national organism and responds to our needs as the occasion demands. The Speaker has very generously responded to our needs today by leaving his important duties at the Capitol to tell us, I hope, of the interest of Congress in your important deliberations. It is with the very greatest pleasure that I have MONDAY — INAUGURAL SESSION V the honor to present to you the Honorable Frederick H. Gillett, the Speaker of the House of Representatives. THE SPEAKER OF THE HOUSE OF REPRESENTATIVES: Mr. Chairman, Your Excellencies, and Members of the Conference: It was a great pleasure for me to- steal away from my duties on the hill for a few moment J to be the medium of presenting to this body the good wishes of the House of Representatives. -I only regret that as the House is still in session I must hurry back without enjoying the further proceedings of this body. _ I have a long time been interested in what was first the Bureau of the American Republics and what, under the wise and popular leadership of its Director, Mr. Barrett, has grown to be the Pan American Union, whose Governing Board is really in a broad sense the legislative body of the United States of America. I have been interested in it simply by watching its growth, and because the region from which I come. New England, has large industrial connections and has in trade relations been closely connected with our South American, friends. We have ex- ported ; we have also imported — indeed, I believe at present our imports exceed our exports, and I certainly desire that those trade relations as well as the relations of friendship and amity shall constaritly be strengthened and shall grow. There has been established lately in our American colleges professorships and courses of study which deal directly with Latin America, showing the increased interest there is in the United States and which I hope will be reciprocal, leading not 'on;y to increased trade, but also to increased intimacy and friendliness which will not cease until there shall all and everywhere be acknowledged that a fellow feeling exists amongst us all. There is peculiar hope, it seems to me, just now that the relations of North America and South America can be closer and better than ever before because this war has fortunately — or unfortunately some may think^eft the United States with an enormous merchant marine which perhaps would not have ever been de- veloped for years except for that. It seems to me the natural and necessary result ■ of that is to bring us all closer together. I trust that all the cities on both coasts of this hemisphere will soon have regular, immediate connections with each other so that, instead of that being a stopping place for steamers from Europe to South and to North America, we will have these direct lines which are bound to have a great result in tightening the influence and the cordial relations between the two Americas. I, and all of us in the United States, appreciate very much the sympathy which we experienced from some of the Latin American republics during the recent war, which led them to unite and to risk their fortunes with ours. That certainly has induced on our part a warmth of feeling and of sympathy which we had not felt before. It was natural and, it seem^s to me, necessary, for, after all, all the countries on this whole hemisphere have now the same principle of popular govern- ment. We are all alike in trusting to the people. We believe that it is the people that shall rule, and at the same time I think all our experience will bring home to us that, in popular government as in every other kind of government, our hopes of prosperity and progress lie in the constant supremacy of the law. The people make the law and the people must obey the law until the people, in a legal manner, change the law. We want the supremacy of the law and we all fear the despotism of the mob just as much as the despotism of the tyrant. The undercurrent of popular feeling in all the American countries ought to be now the same, and there should be nothing that would separate us. I want to endorse specifically what was so well said by the Vice President. I thoroughly agree with him that America has not the slightest feeling of envy or hostility towards any of our brethren on this Continent. For one, there is not a foot of land on this hemisphere that I covet or would take for the United States. There is not any influence -which I would try to exert over the other countries of the Pan American Union except the warm influence of friendship or what, under circumBtances, we would agree was best for that country itself. And in that, it seems to me, we all ought to be united. We all ought to feel that the people of this hemisphere have a state by themselves and they have a common interest and purpose and obligation, and we ought to feel that, if there is any country here which does not comply with its obligations, which does not uphold the rights of international law, which does not make property and life secure, that is an offense, not to any one of the other nations, but to this whole hemisphere, because all of us suffer the stigma from it. We suffer not simply the lawless violence 10 SECOND PAN AMERICAN COMMERCIAL CONFERENCE that comes therefrom but we are all united in one family fellowship and, therefore, we all incur some reproach in our reputation for what any country loses. In this^ day, when all nations are being brought into closer contact than ever before, when. every thoughtful man is pondering on the future relationships of na- tions to each other, it is but natural that we here in this hemisphere, who for a century have lived under the Aegis of a doctrine which has protected us from Europe, bound together as I believe we never were before with friendship ,and good feeling— with friendship and good feeling which I trust the United States will be the last ever to do anything to affect — it is proper that we should gather here, and 1 trust this Commercial Conference will not only be efficient in adding to the com- mercial relations and opportunities of the New World but it will also help to bind closer together that friendship which we all desire. I wish for you, gentlemen, in your deliberations, the utmost harmony and I trust that it may produce the most beneficent results. THE ASSISTANT SECRETARY OF STATE (Chairman): The Chambers of Commerce of the United States are the bone and sinew of our commercial life. Their cooperation, therefore, is essential if we are to carry out the ideal of Pan Americanism. The Chambers of Commerce are grouped together under a confed- eration whose President is with us today. It gives me particular pleasure, there- fore, to present to you Mr. Homer L. Ferguson, the President of the Chamber of Commerce of the United States, to whom we look for guidance and inspiration. THE PRESIDENT OF THE CHAMBER OF COMMERCE OF THE UNITED STATES: Mr. Secretary, Your Excellencies, Ladies and Gentlemen: On behalf of the Chamber of Cotimierce of the United States I desire to express the honor and pleasure which it feels in participating in this Second Pan American Commercial Conference. You have been assured by the Speaker of the House of Representatives and the Vice President of the United States that this nation has no political designs on any of our neighbor Republics. But I wish to say as representing the business men of the United States, that we are not in the same category ! We have designs on Central and South America, and I shall attempt in a few words to tell you how we propose to carry out those designs ! The war has wrought tremendous changes in commerce the world over and we found that between our country and our sister Republics to the south there was a lack of shipping and of communication which has well nigh destroyed our com- merce in certain directions,, and we found, too, that the war had brought us closer together in a business way, made us more dependent on each other and made us realize that our commerce was an affair quite vital to many sections of our re- spective countries, and that this commerce should be, insofar as it is possible, inde- pendent of disturbances in other portions of the world. The Chamber of Commerce of the United States has been quite active in promulgating the work in connection with the Central and South American Re- publics, which has already borne fruit. I refer to the commercial arbitration treaties, the principal one of which so far has been arranged between Argentina as represented by their Chamber of Commerce, and the Chamber of Commerce of the United States. Under this arbitration treaty all commercial questions in dispute, such as the quality of goods, difference in interpreting specifications, shortages, con- dition in which perishable goods arrive, and a thousand other things which formerly had been settled after tremendous delays and frequently after long litigation by reference to a London Arbitration Board, may now be settled by reference to a Board of Arbitration which exists both in Argentina and in the United States. A similar convention is being concluded with Uruguay and four other" con- ventions are m course of preparation with other countries of Latin America These conventions stand for peace and good will and fair dealing. As an American busi- ness man I desire to assume the gentlemen representing the great countries to the South of us that I appreciate the fact that, in order to do business with you and to do It successfully and to keep on doing business with you, it is absolutely neces- sary that fair play shall obtain from the start to finish, that you shall get the kind and character of goods that you desire, that they shall be put up in such manner as your trade shall require, and that the business shall be just as satisfactory to you as it is to us. On no other basis can a prosperous trade be built. MONDAY — ^INAUGJ»AL SESSION 11 When I say that we have designs on business in Central and South America, I say it with that idea in mind — that this business shall be so fair and so honorable that it will appeal to your people and that it will be a pleasure to your people and to our people to continue in that business. There is one feature of our trade which perhaps appeals to me very largely, as I am a ship builder. Years ago in Glasgow, about twenty-five years ago, I had tile pleasure of going to school with- several distinguished engineers ^from re- spectively Argentina, Uruguay and Brazil. In the course of two- or three years over there we came to know each other very well. I assure you that those of us who had the pleasure of associating with these young men came to have for them a very high regard, came to find out that they were inspired by fine motives, and that they made most excellent engineers. Having been born and bred an engineer, as it were, I presume I am some- what partial to that profession, and I do feel that along the line of engineering and commercial engineering lies the great future of Central and South America. Enormous countries are waiting the magic wand of the engineer to make life more comfortable for the people there, to make difficult things more easy! But before we can get to South America or you can get here in peace and comfort, before we can deal with Central America, it is necessary that the means of communication between us be made more comfortable, more regular, so that you can come here just as easily as you can go to Europe. It seems to me that the shipping and all the correlated questions pertaining to a merchant marine are vital and necessary to the upbuilding of great trade between the states of this yvestern continent, and that the reason why that trade has not been built to much greater proportions before now has been due to the fact that you and we have lacked that shipping. It is true that we have provided a large number of ships during the war emergency and at the present time two hundred and twenty-six vessels are operating in the South American trade, having a gross total tonnage of eight hundred and sixty-four thousand tons, a larger number of vessels of the United States than have ever operated to South America before. It is also very probable that many of the vessels now bringing our troops home from Europe will be allocated to the Central and South American trade so that convenience and promptness of access both for freight and passengers will soon be provided. This is but the beginning. It is not only necessary that we have ships to trade with you, but it is also very necessary and desirable that you have ships to trade with us. Eighty-five millions of people live in the Republics south of the United States and these eighty-five millions of people themselves, no more than we, should be dependent for the carriage of their products and for themselves on ships of other countries than their own, or than the countries with which they do business. It is very necessary that we at least have a due proportion of this com- merce between Central and South America and the United States in our own hands. Otherwise that commerce will never amount to very much and certainly not to half as much as it would were the means of carriage, including banking, finance, insur- ance, credits and the like, in the hands of the countries to whom it belongs. Many distinguished Americans have gone to Latin America looking for busi- ness, looking for opportunity, looking over the country. It would be a splendid thing if our great manufacturing concerns sent, not their second or third or fifth or tenth men, but the heads themselves of those concerns to see the conditions for themselves and to realize what has been realized most clearly by all America, by all citizens of the United States who have gone to Central and South America — that the lack of communication, that the lack of direct communication, in ships owned by the respective countries is the greatest drawback to our trade. When Mr. McAdoo returned with the International High Commission in 1916 he and many of the gentlemen who were associated with him were struck with that point ; that, for instance in Argentina, that great city, as large as' Chicago, as rich as Chicago, and said by experts to be a handsomer and finer city than Chicago, should be without proper means of communication with the great Republic of the North. We must have these things if trade between us is to prosper and I believe trade, which is a mutual benefit to both countries, carried on in all fairness, carried on with that courtesy, with that fine spirit which so belongs to the people of the Republics south of us and which is second nature with them, will do more to cement the friendship and do more to tie us with our brothers on this great con- 12 SECOND PAN AMERICAN COMMERCIAL CONFERENCE tinent than all of the treaties that may be written. I mean not only trade in goods but intercommunication, visiting with each other — and I hope to live to see the time when our boys and our young men will go to Latin America to complete their education just as we hope that their young men will come up here to complete theirs. In closing, gentlemen, on the part of the business men, I desire to express my appreciation at being here today and to assure our distinguished friends and representatives from "the great Republics south of us that the business men of the United States are more than anxious to prove to them that we desire that all of our business with them and our communications with them shall be of such a character that they will choose to come and see us again. THE ASSISTANT SECRETARY OF STATE (Chairman) : Gentlemen, the Hon- orable Leo S. Rowe, Assistant Secretary of the Treasury, desires to present a mo- tion to the Conference. THE ASSISTANT SECRETARY OF THE TREASURY: Gentlemen, I beg to move that this Conference express a deep sense of appreciation of the cordial mes- sages that have been received from the chief executives of the various American republics, and that the Conference furthermore respectfully request the Committee of the Governing Board in charge of this Conference to transmit its appreciation as soon as they may deem it possible.^ MR. ALFREDO vdH. COLLAO, New York City : As a Latin American, I Tvish to second the motion. (The motion was unanimously carried). THE ASSISTANT SECRETARY OF STATE (Chairman) : I will now ask Di- rector General Barrett to say a few words. DIRECTOR GENERAL BARRETT: Mr. Chairman, Members of the Board: We have com^e to that point of the program where the necessary announcements must be made. (Announcements.) Adjournment. MONDAY EVENING SESSION The Conference was called to order at 8 :30 by Director General Barrett, who presided over the session. (Announcements.) DIRECTOR GENERAL BARRETT (After reading the rules of the Con- ference) : Ladies and gentlemen, I have great pleasure in presenting to you for a brief word of welcome, on behalf of this capital city, the man who corresponds in other cities to the mayor, a very able, efficient and popular officer, a man whom I have known personally for a great many years, who is filling that high position today with credit to himself and to the capital of the Uriited States. It is a real satisfaction to introduce Honorable Louis Brownlow, President of the Board of Commissioners of the District of Columbia. THE PRESIDENT OF THE BOARD OF COMMISSIONERS OF THE DIS- TRICT OF COLUMBIA: My fellow Americans: I wonder if the presiding officer read those rules for my especial benefit. I don't think that it would have been possible for- him to have erred so far as to think that I needed a reminder not to indulge in politics, because I happen to be, for the time being, the chief executive of a city where there is no politics. Washington, you know, is utterly non-political. Perhaps it. may have some political aspects in its character as the capital of the iJn line with this motion, telegrams were transmitted by the Chairman of the Governing Board of Pan American Union acknowledging the messages referred to. MONDAY EVENING SESSION 13 United States, but as a city, as a municipality, its people have no vote and there is no politics here and we never have an election. I was not chosen to be mayor of this city by the free vote of its citizens, but appointed to that position, and you can readily understand that it would be quite impossible for me to have any political views- or, if I had them, to express them. And in so far as the ten minute limit is concerned, that may have been necessary, for were I to indulge myself to the extent of speaking to you of the significance of such meetings as yours in this capital of this Republic, I could not content myself with ten minutes nor could I in that brief time hope to compact the thoughts that arise within me. But I am not here to participate in your discussions, or to attempt to instruct, but to fuUfil a most pleasurable duty: That of bidding you welcome, most heartily, to the District of Columbia, to the city of Washington, to the capital of the United States. Only a little while ago this^capital was a village among cities and a by-way among the capitals of the world, but in the last two decades it has seemed to me annually to gather a greater and greater importance and from month to month to assume among the cities of the world a more significant place. One of the very great days in the history of this city was when a great many men representing all of the nations of the western world came to this place at the ceremony of the laying of the cornerstone of this building and from that time, from the time of the dedication of this building, this has ieen a center where the people of all the Americas have come to counsel together for the good of all the nations of the west. In the past two or three years a great many more people have come to this city than ever lived here before; a great deal more has been done here than ever had been done before, but I want to assure every visitor within our gates that the spirit of Washington continues to be the spirit of the mSn for whom the city is named. Our people here welcome you for your discussions in the hope and the belief that great good will result from your common counsel, not only for the people of our country, the United States, but also for the people of every country in America. For such meetings we believe Washington is an ideal city and for such conferences this building, with its history and its traditions, an ideal place. I want to assure each and every one of you that while you are here you are the guests of the hospitable people who desire to do everything that they can do for your comfort and who have at all times in their hearts the liveliest and most cordial sympathy for you and your aspirations. DIRECTOR GENERAL BARRETT: A great and powerful commercial or- ganization exists in this city that has at its head one of the most forceful and un- selfish, hardworking citizens of the District of Columbia, who is here just to say a word of welcome on behalf of his organization. I have pleasure in introducing to you Mr. R. N. Harper, President of the Washington Chamber of Commerce. THE PRESIDENT OF THE WASHINGTON CHAMBER OF COMMERCE: Mr. Chairman, Ladies and Gentlemen and Visiting Delegates: It is useless for me to say that it is a pleasure on my own behalf as an individual inhabitant of the District of Columbia and as President of the Washington Chamber of Commerce — that it is with great pleasure that we welcome you upon this occasion and par- ticularly on account of the mission in which you are here to take part. I used the word "Inhabitant" of the District of Columbia on account of what Commissioner Brownlow had said, that we are here as only inhabitants of the District of Columbia, not being able to exercise the right of citizenship and we are beginning to feel it. We hope that we can make others feel it, and they will come around our way, as we are governed entirely by others and not by ourselves. The city of Washington, the capital of what we think and believe we have a right to think one of the greatest Republics on the globe, is of importance now in the eyes of the entire world. We do hold a unique position, or have held, all the time in the past, in having our time mostly occupied in things political and social. But there is a new generation being born at the nation's capital with new ideas, advanced thought, and we are coming to believe and assert that commerce and -manufacturing at the nation's capital should be of the same importance as is noted in the capitals of the great countries abroad. The location of this capital city is in every way inviting that commerce should be started from this very center of political operations. We are located 14 SESOND PAN AMERICAN COMMERCIAL CONFERENCE in one of the most fertile agricultural sections of the country; we have all of the raw material for manufacturing purposes that could supply the world, and this city particularly has deep water transportation to the sea; it has terminal facilities for all of the trunk lines that traverse the entire country and, above all, we have the disposition to stretch out over the country and bring in the dollars from the other people. But in doing it we want to give value for whatever we receive! There is little that I can Say or add to that which has already been so well said by our Commissioner, excepting, I notice, that he did not say to you visitors that the Police Department will be blind to anything that you do, the traffic regu- lations will not be entirely alert— that is, only to the outsider. We ask you, how- ever, to be cautious for yourself and we will try and take care of you under those conditions. Now that you are here with these great problems thatare before you, I feel sure that the relations of this country and of ;your own countries will be more deeply cemented and that all sections of Pan America will be benefited from the delibera- tions of this Conference. I wrote an article here some years ago in regard to the climate of Wash- ington and stated that the climate was always pleasant and that you could work out of doors all the year round. The next winter we had snow from November until about the first of March. Now we are having some heat, but Mr. Brownlow has assured Mr. Barrett that that will be attended to in the morning. Ladies and Gentlemen and Visiting Delegates, may I repeat that the Wash- ington Chamber of Commerce, as far as it is within the power of all of us, extends to you a most hearty welcome to the nation's capital and we hope that you will find it as pleasant to you as I can assure you your being here will be to us. I thank^ou. DIRECTOR GENERAL BARRETT: Ladies and gentlemen, it is an interest- ing thing that at this moment will begin the actual practical work of this Con- ference, and it is a very good omen that beginning alphabetically .with the great country of Argentina, we have here three representative Argentinians. First, I refer to Mr. Pablo Roth. If any man is typical of the great business life of that mighty land of the South, it is he. He is just as much of the heart of Argentina in busi- ness as any representative biisiness man of this country is of the United States. That shows the kind of a Conference we are holding, ladies and gentlemen ! This is no ordinary play-time gathering. Dr. Enrique Gil is one of the leading lawyers of New York and Buenos Aires, Argentina, and well informed upon the com- merce and trade of his country. Then Mr. Ligeniero Jacinto Anchorena is one of ■the great engineers of that country. I now introduce to you for a brief, practical statement in regard to this great country a man who is the managing director of the Union Trading Company of Buenos Aires, Mr. Pablo Roth. MR. PABLO ROTH, of Buenos Aires: (The paper read appears on page 91^. DIRECTOR GENERAL BARRETT: In order that we may get the full benefit of this paper the discussion of Argentina is now open to the house not for any speech at this moment, but for practical suggestions or inquiries of a proper char- acter from some member of the Conference. MR. FRANCIS B. PURDIE, of New York : It has been stated numerous times that prior to the war the Argentine Republic purchased from the United States only the things they could not get anywhere else, such as oil, agricultural machinegr, lumber, etc.; that during the war they purchased what they could not get anywhere else and what by necessity they were forced to get from the United States. They have built up a very large trade now. The question is, Is there a citizen of Argentina here that will give us some promise as to the future perhaps depending upon ourselves, perhaps depending upon the change of sentiment in Argentina towards the United States as to what the outlook in the future will be? Are we to lose what we have gained? If we are to keep what we have now, what must we do to keep it? MR. JACINTO ANCHORENA, of Buenos Aires : If I am not mistaken the question is this: How can the increase of commerce between Argentina and MONDAY EVENING SESSION 15 the United States during the war be maintained? I will try to answer. First of all, why did not Argentina buy more from the United States before the war? Simply because she got better conditions of payment, more facilities from the European markets than from your manufacturers. Now, if you put yourselves on an equal footing with them, certainly our sympathy is with you. There is no doubt about it, and we will buy your goods ; but you know that business is business, and if you cannot put yourselves on an equal footing with European manufacturers, we shall have to go back to them or to anybody else who can give us good terms of payment, goods well boxed and in good condition, and, above all, one who, when we place an order with him, gives us the right thing. That is the hardest of all. because, as a rule, you have special names for the things that you export to Argen- tina and to other South American countries, and I must tell you the truth, very likely that is done to mislead the buyer in such a way that he cannot get prices from other sources, because the article is not known by that name in the European markets. DIRECTOR GENERAL BARRETT: I am sure that is the kind of discussion we like. It has aroused the interest of everybody. Mr. Purdie, you lived a long time in Buenos Aires. Will you please give us some practical suggestions from your own viewpoint? MR. PURDIE: First I want to say that in Argentina there is for those who have not been there absolute freedom to do anjfthing you please so long as you obey the laws of the country. You can worship whatever god you please and whatever way you may please, and you can do, business in any way you want to do it, so long as you are within the law. Another thing I discovered down there is this : That if you keep your word, keep your faith with the people, you will do business and do it all the time. I also found out that Argentina has been largely benefited by money in- vested in it from the outside world in building railroads, in establishing banks and industries and in giving impetus to the life of the country and enabling the natural resources of the Argentine to be profitably exploited for the benefit of the people of the country. We should never forget that when we go into a country for profit we should always consider its people and never seek to going to exploit them and take away from them without giving them anything in return. The reason why I wanted to ask that question was to bring out this point, that we have been, evidently, ex- pecting to go down there and do a great big business and a great many of our people do not think of giving any return for it. The reason why there was not a large trade with the United States before the war is due to the fact that the sense of loyalty of the Argentines was to the people who put their capital there with them and intrusted that capital with them. Practically speaking, there was no American capital. Is it not reasonable to suppose that they would give their trade to the country that put its' money with them and helped them build up a rich country? There- fore, I say the United States cannot hope to succeed in the Argentine Republic or any other country of Latin America unless it gives something as well, unless it invests money down there and unless it absolutely keeps its faith. That is the thing that I want to impress upon everybody — the Golden Rule. Do not let it be merely words, but deeds, that when we say we will do a thing we will keep our word, we shall be honorable men, we shall be American gentlemen and be known as honorable men in all our business dealings. In that way we shall win the trade and make friends with them. MR. V. L. HAVENS, of New York: I have been in Argentina and I have also attended a great many conferences where the question came up as to the attitude which we have assumed toward Latin America. It is just as well from time to time to find out if some of the fundamental arguments are sound. The question has been asked as to why the United States did not enjoy a large share of the trade of the people of Argentina before the war. Statistics would indicate that they did not, provided one simply read the statistics as they arp, but we do know that the Argentine bought more from the United States than we have bought from them. We also know that the things they bought in the United States were the things which people use. The sales of American product? were distributed more widely throughout Argentina before the war than the sales 16 SECOND PAN AMERICAN COMMERCIAL CONFERENCE of any other country, but the total value of the sales to Argentina were greater froin European countries than from the United States because cf Jhe great invest- ments of the European nations ia Argentina. To cite one particular product — coal for the railways. In the last normal year before the war Argentina bought $27,999,000 worth of coal from abroad. Britain sold $26,800,000 worth of that coal, but it was not used by the people of Argentina, it was used by the British railways, financed with British capital under the control of the British officers, and just as much of a British railway as regards the operating system and control as it would have been had it been in Great Britain. Now, we can never hope to get that business because the people who put up the money for the railways and who are interested in industry in Great Britain will make their purchases there, but we must not deceive ourselves and permit people to tell us that we are not pleasing the Argentine people when, after dis- counting the sales to the great public utilities controlled by foreign capital, we sell the majority of the goods used by the people. Where does the agricultural ma- chinery used i:i the Argentine come fromi? It comes from the United States. Agriculture is the great business of the country and we have not only sold the agricultural equipment there a few years, but we have done it for many years and the people are satisfied with the equipment. I was at one time, for a short while. Commercial Attache of the American Embassy in Buenos Aires. I was asked to go there by our Government to learn why there was this eternal, continuous criticism against the Argentine people on the part of American manufacturers. The papers of Buenos Aires and of Europe were full of it; it was heralded far and wide that American business men were shipping goods to Argentina that "Were not what they promised to ship, that the terms which they were offering were not what the people required and that every- thing was against us here in the United States. I wanted to be absolutely fair and I was really looking for something to justify my trip to Argentina. I went there especially to find out what we were doing that was so vitally wrong and would lead us to be criticized by everybody in Buenos Aires and New York. So I selected all the complaints I could find in the American Consulate and went to the head of the Chamber of Commerce in Buenos Aires and asked him if he had any complaints. He said he had. We sifted them out and we found nine, three of which were on printing paper and four on leather. I took the matter up with the head of the Chamber of Commerce in Buenos Aires. The facts were placed freely before him. The commercial representative of the National City Bank did everything he could to place the full facts before him, as did the Secretary of the American Chamber of Commerce in Buenos Aires, and the head of the Chamber of Commerce in Buenos Aires gave~'out an interview by himself to the press to the effect that he had investigated these complaints and that they were unfounded. I do not say that complaints are not entirely unfounded in the broad, general way. I mean there has been room for much criticism on the part of American ^shippers to Argentina, but that room for complaint has been found between business men of two different countries the world over. They are little things. Occasionally there is something big, but generally they are some little things that happen because of the lack of knowledge between the people, the long distance from the rriarket, the fact that the people of Argentina did not know our products. Another thing that made a lot of trouble during the war time was that we could not turn out the products that Argentina required; but likewise we could not produce the articles we required for ourselves in this country and it was only through special concession that the manufacturers got the consent of the War Trade Board or authorities here to get anything out of the country, and lots of them were wrong, but we knew they were wrong and we also had to use them here in this country. W'e could not give credit for six months during t"he war, and there was not a house in Europe that gave credit during the war. When the war was over, we gave credit just the same as they did. MR. PABLO ROTH: This gentleman just now has made two mistakes. One of them is that we buy more than we export. Two years ago we bought in the States sixty million dollars' worth of goods and we exported a hundred and fifty millions. That is twice as much as we imported. i lit should be borne in mind, however, that these figures are for 1917, and that under normal times the imports from the United States into Argentina are greater than the exports to the. United States. — Editor. MONDAY EVENING SESSION 17 Another thing about which he is mistaken is the complaints, that he found only nine. Now my firm in Buenos Aires doesn't go to the Chamber of Com- merce to make its complaints, it goes directly to New York, and so, of course, the Chamber of Commerce didn't know anything about my complaints. It's the same in the case of anybody else. I don't go to the American Embassy to make a claim for goods that have come in bad condition to me. That's why you haven't seen more claims. If you had gone around to business houses you'd have found more of them. MR. PEMBERTON SMITH, of New York : I lived ten years in Argentina, representing a medical firm there, and you ask for a practical suggestion. May I make it? Most American firms start a man to make the tour of South America and lay out an itinerary which he is supposed to follow as to date, steamers, etc. They .give about two weeks to Buenos Aires. Two months is none too much, two years is none too much. If you are going to send a man around to South America, do not tie him down to an itinerary. He will arrive there, it will take him a cer- tain length of time to make his calls on people, then they will want to look him up. By that time he is off on a steamer and has accomplished nothing. Let him go there with the expectation of staying in Buenos Aires, where there are a million and a half people and quite enough business to warrant his stay- ing three months, and at the end of three months he will have done something worth while. At the end of three weeks they will hardly know his name. That is a practical suggestion. -^ MR. C. F. DEICHMAN (American Consul, Santos, Brazil) ; I can state, Mr. Chairman, that what Mr. Smith has just said will apply to practically all the South American countries. The trouble is that the average American manufac- turer does not care to spend the money necessary for a trade campaign. In most cases he expects a two-cent stamp and a letter to bring him a large order. If the correspondence at the average American Consulate could be read it would sur- prise many of you. The way to get foreign business and to get it not only in Argentina but in all the other countries is by active trade campaigns very much in the same manner that you would do so in this country. It is necessary to send men to sell your goods who understand them thoroughly. The idea is to find out the business conditions, and such a man should be thoroughly familiar with what he has to sell and be given sufficient time to look up the business firms in the cities he is visiting and in which he expects to sell his goods. In other words, he must familiarize himself with the conditions in that country, be there a certain number of weeks or possibly months to get the view- point and to have an opportunity of studying the firm, to find out which firms are reliable, which firms are in a position to handle the goods and also able to import on their own account and perhaps sell to retailers or to smaller concerns in that country. It requires an active and intelligent trade campaign, the same as would be necessary to introduce or to sell goods in this country. In Brazil, where I have been stationed the past three years, the same con- ditions to a certain extent hold good. There are a number of large American export houses which have branches in the principal cities of Brazil. I believe also in Montevideo and Buenos Aires. Those are firms of large capital and they are spending it freely in acquiring trade information. They will sell anything on commission. They have their branch or distributing houses in the principal sea- ports of those countries and are able to study the markets at first hand, also to know the firm to whom they are selling their goods. If there is a complaint they are on the ground and ready to adjust it. That is the best way of selling goods in those countries. Large firms or corporations, and especially _ large manufacturers of staple goods should have a selling branch, not a commission agency, but a branch house and an expert in charge who can at each place organize a staff from capable young business men of that country. They will assist him to sell the goods. He is there to give information about the goods and to handle the financial end of it. If there is a complaint he is there to settle it, he has authority to make good any complaint and if necessary refund the money or replace the goods. DIRECTOR GENERAL BARRETT: I will now ask those in charge of the lantern slides for Argentina to give them as quickly as they can in order that we 18 SECOND PAN AMERICAN COMMERCIAL CONFERENCE may have those of Bolivia following, and you will find these of very considerable interest, I am sure. (Lantern slides showing scenes from Argentina shown.) DIRECTOR GENERAL BARRETT: Before we have ihe moving pictures of Bolivia, which are very interesting and have been carefully prepared, we want to devote a little time to that wonderful country in its commercial aspects. Dr. Julio Zaraora, the eminent Financial Agent of that country, was expected to speak here, but he has been prevented by illness. His paper will be read at another session. Statistical reports on Bolivia have been filed for the printed proceedings of the Conference. (Bolivian pictures are shown and explained by Mr. W. A. Reid, Acting Chief Clerk of the Pan American Union.) DIRECTOR GENERAL BARRETT: I am sure we are all very grateful to iWr. Reid, and that -I express your appreciation of the way in which he has, not only clearly but also eloquently, presented these very interesting and instructive pictures in regard to a country of which we should know more. (Announcements.) Adjournment. c a X H ■ < S o 1- O 4" J S «■§ ft g < ■" a o 5-0 ^ Mi m c K * H t J > >-) S •:; IS ^^ tt) M CO 19 TUESDAY, JUNE 3, 1919 MORNING SESSION The Conference was called to order at 10 o'clock by Director General Barrett, who presided over the session. H« annoui^ped that he had prepared a paper on "Practical Pan Americanism'' in its relation to Pan American commerce, but that he would give his time to the distinguished speakers of the day, with "leave to print" his paper in the proceedings of the Conference. (See Appendix.) (Announcements.) DIRECTOR GENERAL BARRETT: Ladies and Gentlemen: I am going to introduce to you the distinguished Ambassador of Peru, one of the great statesmen of that country; a man whose name is well known all over Latin America; who has changed his plans for departure from 'Washington for a number of days in order that he may be here and speak to us this morning. I think we should con- sider it a great honor, especially when we are to have the pleasure of hearing from him in English. If we could only speak Spanish as well as he does English we would indeed be fortunate. I have great pleasure in presenting to you Dr. FranciSco Tudela y Varela, Ambassador of Peru. THE AMBASSADOR OF PERU: Ladies and Gentlemen: The Pan Amer- ican Commercial Conference takes place under extraordinarily favorable circum- stances, owing to the initiation of the period of reconstruction and balance of the economic factors of the world, so deeply shaken by the overwhelming catastrophe of the great war. The laws of economics are fulfilled, just as other natural laws, by virtue of their power, commerce, especially, being developed -through the impulse of reciprocal necessities, which spontaneously seek the means by which a satisfactory solution may be attained. The former notwithstanding, no one can minimize the importance of these meetings, in which the directive energies of business come together for the specific purpose of obtaining the most perfect knowledge of conditions affecting the different human centers to which these energies belong. This Conference is confronted by a fact: the extraordinary development of Latin American commerce with the United States — not as the result of artificial factors, but as the direct consequence of the natural equilibrium of commercial re- lations, altered by the war. A fact of this importance neither can nor should be overlooked, and, indeed, deserves to be carefully studied so as to obtain the greatest possible advantages, from the standpoint of the welfare of the different nations of America. This result must be achieved through the ccofieration of merchants and men of business of the whole Continent, assisted by the administrative element as well as by the representatives abroad of all the countries of this hemisphere. Second only to national ^solidarity, which urges each country to supply its own needs, this last crisis has affirmed the existence of a continental solidarity, still more potent than universal solidarity. My country takes part in this Conference, convinced of the good purposes v/hich its fulfilment implies ; eager, also, that the importance of Peru, as a unit in the commercial relations of America, be duly recognized and appreciated. Before the outbreak of the world war the greater part of my country's com- merce was effected in Europe, because Peru obtained in the Old 'World at the same time as better prices for its products, lower prices and greater facilities for the manufactured articles which it required. The war has radically changed this condition of affairs and in support of this statement I would point out that, while in 1913, the foreign trade of Peru with the United States was- 31 per cent, the 1917 statistics give this proportion as having been raised to 65 per cent. In order that this position may be maintained within the normal boundaries set by the recently inaugurated economic life of the word, it is important that both the buyer and seller in the United States grant the Peruvian exporter and importer greater or, at least, equal advantages which the buyers and sellers in Europe are 20 SECOND PAN AMERICAN COMMERCIAL CONFERENCE willing to grant. This must necessarily be the touchstone by which to judge the future importance of trade between Peru and the United States. Neither should the matter of credits be forgotten when deaUng with the i^nportation of manufac- tured articles into Peru. And this holds good with regard to other Latin American countries, for the European manufacturer has always granted facilities which have been denied by the American manufacturer, perhaps for the reason that his own credit is evolvSd under conditions different from those which affect the European manufacturer. This is a matter which deserves the most earnest attention. With regard to conditions in Peru, these are such as to warrant the state- ment that my country is well prepared to receive and do justice to all enterprises tending to increase commercial and economic activities. The principal items among its exports being represented by such commodities as copper, sugar, cotton, wool, petroleum, rubber, etc., the product of industries securely established, it can be readily seen that the wealth of the country is constantly progressing and its people therefore constitute a market for the absorption of foreign manufactures necessary for its requirements. As a proof of its solid financial condition it must be borne in mind that its' gold monetary standard is established on a firm basis, the stabilization of the value of the Peruvian pound in relation to the dollar, having been obtained through an agreement with the United States Government by virtue of which part of the balances accruing from commercial transactions with this country are deposited in the Federal Reserve Bank of New York, the equivalent thereof being put into circulation in Peru. Before this agreement had been carried out the Peruvian pound was quoted at a premium of more than 20 per cent over the American dollar. The class of products which Peru exports, the fact that the national debt is of insignificant proportion, and the circumstance that the revenue of the country is constantly increasing, all these factors constitute the surest guarantee that can be furnished as to the stability of the rnonetary system, the most powerful stimulus for the investment of foreign capital, which in Peru is not exposed to the risks consequent to fluctuaSon of the currency. If the developthent of its commerce is of the greatest importance to Peru, the investment of capital in productive undertakings is of still greater moment. Few countries offer a better field for remunerative investments than Peru. Irrigation, the building of railways and good roads, as well as mining, are especially to be recommended. Mr. Charles W. Sutton, a distinguished engineer of New York, who has lived in Peru for some years, estimates the easily irrigable area of the coast at one million acres, of which 126,500 acres the same authority considers are immediately available for irrigation with practically no trouble. The lowest estimate is $19 and the highest $105 per acre for irrigating this land. It should be rememibered that arable land on the Peruvian coast increases in value every day, so that it is easy to calculate the very productive investment which irrigation constitutes in Peru. Cotton and sugar cane, whose prices have been so much increased owing to the war, are products that have been so extensively grown that they have taken the place of others, the want of which has made itself felt by consumers in my country, with the corresponding rise in the price of these commodities, nearly all of which are articles of primary necessity. With regard to railways, it is enough to state that the whole future of Peru is bound up in the construction of railroads, and that all those which have been projected offer returns of absolute security for the capital which may be invested in them. Several mining zones of great richness would be at once available by the construction of a few hundred miles of railway lines. To mention coal alone, although Peru possesses immense layers in different regions in the country, this article is still imported from abroad to make up the deficiency of home pro- duction. A railway of only fifteen miles, branching from the one which starts from the splendid port of Chimbote, would solve the problem of coal supply sufficient for the needs of all the Republic and would initiate an era of domestic' prosperity of almost incalculable value. The petroleum industry in Peru is another extremely profitable opening for foreign capital. The very rich district of Talara, at the extreme north of the Republic is not the only one which could furnish abundance of mineral oil. Talara TUESDAY MORNING SESSION 21 itself is capable of further development through the establishment of other com- panies in that region. It is unnecessary to state that Peru considers the investment of American capital with the warmest interest. A proof of this is furnished by the Cerro de Pasco Copper Corporation, which has obtained brilliant returns on its investments and which is at present considerably increasing its capital so as to enlarge its smelting plants. The wonderful results obtained by this company are outlined in a report, recently published, which gives the gross income from the sale of metals in 1918 as being $22,867,000, and dividends paid totaling $4,393,000. It has been proved, besides, that the Cerro de Pasco Copper Corporation can be considered one of the lowest cost producers of copper in the industry, the company being able to deliver metal in New York as low as any producer and even lower than many of them. It is unnecessary, at this time, to deal at length with the importance of sea transportation for the development of commerce and industry. This problem, for- tunately, is one which holds the happiest augury for Peru, which, in addition to its own fleet of steamers, those of the Peruvian Steamship Company, notes with much satisfaction the additions made to existing lines and the bringing into service of new ones, such as that which W. R. Grace & Company contemplate establishing with New Orleans as the home port in the United States. I have only to add, gentlemen, while thanking you for your attention to these brief remarks, that the Peruvian representatives to this Conference will give every attention to such questions as may be addressed to them on all matters which may lead to the better understanding of the conditions of the country from the standpoint of the development of its commerce and specially as regards the investment of capital in Peru. DIRECTOR GENERAL BARRETT: I am sure that you all enjoyed the Am- bassador's address, because it was thoroughly practical. That is the kind of a talk we like to have from the representatives of Latin America and the kind they like to have from those of the United States. I am glad to say that an address like that does not come under the classification, as one editorial writer said, of "Latin-American oratory," but under the head of "Latin-American facts." I cannot tell you what pleasure I have, speaking from my own knowledge of American commercial matters, in introducing the next speaker. Long years before he became Secretary of Commerce I knew of his work in Congress. He was one of the few men who were sympathetic with those of us, a small band, who were trying in those days to awaken an interest in the relations of the United States with the sister American Republics. From the day he became Secretary of Commerce he has demonstrated the practical side of his powers of vision, and under his administration the Department of Commerce and its Bureau of Foreign and Domestic Commerce have done a wonderful work for the building up of the trade between the United States and the other American republics. I have great pleasure in introducing to you the Honorable William C. Red- field, Secretary of Comjnerce of the United States. THE SECRETARY OF COMMERCE: Mr. Ambassador, Mr. Barrett, Gen- tlemen of the Conference: As we look back five years to the conditions that existed before the war, it is as if we were looking toward an ancient period, one remotely separated from us rather than one divided from us by so brief a time. At that time the United States was itself a debtor nation. We had built up our transportation systems, our public utilities, some of our industries by borrowing from others the free capital which we did not ourselves have in sufficient quantity. So that when the war broke out in 1914 we were debtors to the world to the extent of something like live billions of dollars. We were slowly going "over the top" of financial freedom — ^we had begun, but had only begun to invest our own capital in countries that needed fresh resources of credit, but we were still at that time drawing upon others for a large part of our own needs. We lacked at that time the tools of foreign trade which our competitors had. You are, yourselves, witnesses that in many of the great South and Central Amer- ican cities there were banks representing Great Britain, Germany, France, Italy and 22 SECOND PAN AMERICAN COMMERCIAL CON|'ERENCE Other European countries which afforded to' those nations the means of knowledge, the means" of supplying credit, the means of conducting business which we at that time were almost wholly without. We lacked at that time, also, means of trans- portation within our own control. While emerging from the position of a debtor nation, though not yet out of that condition, we were at. the same time endeavoring to conduct our foreign trade largely through the facilities provided by our com- petitors for their own purposes — an extraordinary position for as great a nation as our own, but one which every man familiar -with the foreign field knows to have been a real one. We did' our business with Central and South America through the aid, in major part, of foreign owned and controlled banking institutions and we utilized the fleets of others for conveying our commerce. It has always been, to my mind, one of the most vital pro9fs of the competing power of America in the world that under these conditions she did a steadily increas- ing trade in manufactured products so that the great expanding item in our foreign trade was that of fully finished products which had grown to a point before the war where they exceeded the sales of our agricultural products. I cannot too strongly emphasize the picture of those times and the conditions under which we then labored because they afford a dark background against which to project the picture of the present hour. We were a debtor nation, we were using the banks of our competitors, we were using their ships, the detailed operations of our commerce passed through the hands of those with whom we competed and were open to their scrutiny. Never- theless, under those conditions, such was the competing power of the United States that our competitive trade grew steadily ! With the passage of five years those conditions have gone, never, we hope,, to return. It is no longer necessary in a great South or Central American city for us to use the banting institutions of our competitors to do business. Information can be brought to our exporters from practically every portion of the great conti- nent to the southward" without its being divulged to any other than the person for whom it is obtained, and' we are able ourselves now to extend, not as we ought but as a beginning, the credits in the field of commerce and industry which we were not able to grant at all before the war, and which our competitors did extend when we could not. That power has come to us in some measure with the. promise of growth. Furthermore, we are no longer dependent upon the fleets of our com- petitors for doing business with tbe world at large, nor need we be confined as respects our shipments of goods to routes which may be laid down by lines whose interests are not our own. I have suggested within the past ten days at the request of the Chairman .of the Shipping Board two new routes, one along the Eastern and Northeastern coast of South America and one along the Northern shore of South America, primarily from the point of view of the needs of American com- merce and incidentally for the purpose of providing not merely facilities for the outside world to do commerce with South" America but also means of intercom- munication between the states of South America themselves. For the spirit of the Department of Commerce fully expressed is this : That these things are mutual interests, that there are not and in the long roll of time there cannot be diverse interests between the peoples of the same continent, for we are essentially one in any large and deep view of commerce and industry; that the prosperity of South and Central America is inextricably interwoven with ours, and the things which seem at times to divide us are superficial, while' the basic things all tend to union. We are, therefore, equipped as never before with the tools of trade. We did a growing trade without them, with them we expect to do a larger and more fruitful trade. I \yant to speak to you of two phases of foreign trade and then to pass on to certain details of that commerce which I wish to bring to your thought. There are two ways in which foreign commerce may be carried on. • Back of both lies our need of an export trade. That need can be very simply shown. Before the war, even, the industries of America were so productive that the domestic market of the United States, vast as it is, was not permanently able to absorb all the products of all our industries running continuously full time. There came times when there was surplus production for which a market had to be found abroad. , Furthermore, there were growing up in America industries which depended nearly or quite exclusively upon the foreign market and which adapted themselves TUESDAY MORNING SESSION 23 peculiarly to it. There was also, as I have suggested, the beginning of an outreach of capital into the foreign fields. Today, as another result of the war, the output of American industries has been grealty increased. For several years every effort possible was made to ex- tend the productive capacity of our industries. This was indeed done for purposes of war but it \vas very wisely guided in many industries with a definite expectation of using it for peace when the war should have ended. So that today the pro- ductive power of the United States is very much larger than it was before the war. If it was true, therefore, that our productive power before the war, when running continuously for long periods of time, touched and at times exceeded the capacity of our own country to absorb it all, it is even more true today that we need as a matter of our own economic security, foreign markets for our products else we shall, not be able continuously to run our industries full time. There is, therefore, in our outreach after foreign trade, a normal seeking to supply a home necessity. As I have said; this foreign trade can be roughly divided into two kinds. It i.3 not easy to define them exactly, because the necessity for definition has but just arisen and our thought has hardly become clear upon the subject. But I may say that one is the competitive and the other the constructive foreign trade. Or to state it differently one I might call commercial trading and the other national develop- ment. The one is of the hour and the day and the month ; the other is for long periods of time. The one is temporary, the other permanent. The one is -strictly competitive, the other is strictly constructive. 'Let us look for a moment on these two possible phases of foreign trade. The second, which is the greater, the better, the more helpful, has but just become possible to the United States. The other is the one upon which hitherto we have based nearly or quite all our foreign transactions. It is a comparatively simple thing to send out into the foreign field traveling salesmen, to order them to go through- out the length and breadth of South and Central America, to offer standard goods now required in those markets at slightly lower prices than they are offered by our competitors. That, I say, is a comparatively simple thing to do. It needs no special brains or acumen to see that if goods are offered of equal quality at a lower price on similar terms and with equal transportation facilhies, the better economic advantage will win. But that process is not one which, carried to an extreme as it tends always to go, is in the long run generally helpful. For the hour, for the time, for the im- jiiediate transaction, it may amply serve. It builds nothing, it is not of a permanent character, the countries in which and from which that business is done do not gain from it any large and permanent increase of wealth and power. It is of im- mediate and temporary benefit only. It closes one transaction and passes on to the next. Competition of that character, at its extreme, tends always to destroy the weaker element, to aggran4ize the stronger elerhent. In any such class of business as that the drift is always toward the survival of the fittest, the organization which is economically most fit. The progress of that competitive trading, carried to its ultimate and logical conclusion, is always toward monopoly. In competition, unregulated save by the power of the competitor, the end is the survival of the strong and the passing of the weak. It is not that class of tiade which, in my judgment, is best either for South and Central America or for North America. Trade of that kind is passing into secondary importance. The kind of trade for which we seek is that which is permanent and whteh sheds its benefactions alike upon buyer and seller and upon all who serve on either side. For commerce, if it is to stay, must be a servant of the public. Com- merce is not a servant of the public unless it is based upon permanence of mutual interest, unless we deal together as those who buy because it is desirable they should buy and those who sell because it is desirable that they sell, and those who in this way cooperate for the mutual good. Unless we do that our commerce is essentially faulty. Furthermpre, there must not enter into the background of the purpose of trade any pursuit of national power or any extension of political authority howfevef indirect. The world has had one very sad example of great national selfishness. It has seen the downfall of a great power, wonderfully equipped for industry, guided by the hand of science to a degree equalled by no other nation — in every material factor powerful and strong but upon its spiritual side selfish and weak. This generation has seen the great tragedy of the collapse of that selfishness and 24 SECOND PAN AMERICAN COMMERCIAL CONFERENCE its exposure to the world." The spirit of Germany entering into America was not a spirit intended in its essence to be helpful to America, it was not a spirit, whether manifested in Buenos Aires or New York, that was for the ultimate advancement of Buenos Aires or New York, it did not go to Valparaiso or Lima that either of the countries in which those great cities are located should be the chief beneficiary by their coming there. German enterprise went outwardly indeed for the same purposes that others went, but in its inward spirit for the growth of the power which sought to reach and to control the world for its own purposes. Those facts the world now knows. . And strong, mighty and effective as the great commercial and industrial giant Germany was, it was like the image in Holy Writ standing upon feet of clay which were finally broken away and the purposes revealed in their essential weak- nesses. No nation is powerful enough to take the place that was thus occupied and to assume the spirit that was thus used. There does not lie in econornic power ability to overthrow the human spirit and the human spirit revolts and will always revolt against attempt at enthrallment by economic force. There must come into our mutual trade the spirit of service and if it is in my power to say any one word tn you or to my fellow countrymen which I would write deep into their hearts and vours as the basis of all our mutual transactions in the future days, it is this thought of mutual service. Unless we serve you, we shall fail- Unless you serve us, you will fail. Unless together we serve the world by our trade, we shall all fail and those who will serve will come and take our places. " The law of service through trade may not as yet be written as clearly before the minds of the world as is the danger arising from selfishness in trade, vet it is the antithesis of that selfishness and the reaction of the commercial, the intellectual and the spiritual forces of the world must lead them to recognize in principle and carry out in practice the ideal of service in trade. The United States is suffering now from an overdose of prosperity. We have paid the five billions we owed and there is something like twelve billions due us from those to whom we ourselves were debtors not many years ago. We have, as I have said, an enormous productive capacity which we seek the means to use. We have a huge reserve'^f gold behind our currency and in every element of eco- nomic power stand at the very height of prosperity. But if we glory in that position, if we regard it as power to be used only for greater gain, we shall default the moral obligations we owe the world. This very condition, however, brings with it serious problems. For example, how shall we be paid the billions due us from the world at large? From whence and by what method shall the payment come? There are but three ways known in which debts can be paid. They can be paid in cash or in credit, which is a deferred form of cash, they can be paid in services, or they can be paid in goods. Are there any other ways of paying debts than these three? Now, if that proposition be true, it is basic as regards all our thought of commerce in the coming days, for how shall the twelve billions with its interest oe paid ? In goods ? Those who owe have not the goods with which to pay the twelve billions and if they had, it is not at all certain we should want them at the time and in the quantity and the kind in which they might be offered for payment. Before the war we accepted services from other nations. We used their ships, we used their insurance companies, we used other facilities. Now we do away with those services and use our own ships and are forming our own marine and other insurance companies. The nations cannot pay us in services as once in part they did. The nations have not the cash with which to pay or the credits to give us in payment. There is not in the world sufficient, free liquid cash to pay these great obligations due us. How, then, shall the problem of our prosperity be met? We are in the position of a creditor, a kindly and I trust a generous creditor, who has due him huge sums from friends, thank God! — friends who are abundantly able so far as assets are concerned to liquidate their debt but who have not those assets ready to be speedily turned into goods, services, cash or credits to pay the debt at once. There is certainly no occasion for impatience, for neither you nor I as business men would treat a debtor who was our friend hardly when he was in such a case. There would be but one way for the business man to act toward such a debtor; tEat is first to say, "Take such time as you require and as we can afford to give," and second to extend to him, because he is a friend and because he is dependable. TUESDAY MORNING SESSION 25 the hand of helpfulness to aid him to pay. Tliat is the proposition which faces the United States. Simply because we are creditors on an enormous scale, we must help those who owe to pay us what they owe. For it would be interesting to see what would be said by an advocate of some other method, if there be one, whereby these vast sums can be repaid to us with interest in reasonable time. If there be some other way than these three that I have mentioned, 1 should be glad to have it suggested. There does dawn, however, out of this problem the very constructive or development type of foreign trade to which a few moments ago I referred and so far as my thinking goes, it offers the only solution to these great problems. It also applies with peculiar force and opportunity to the nations that have great undeveloped natural resources We have accurnulated a great wealth of free capital in the United States What shall we do with it? It is my belief that our constructive service to the world calls on us to let this capital of ours now flow out into the world that needs it for the world's enrichment. You observe I do not say for our enrichment. There will come inevitably to the United States rewards from such use of its wealth abroad. Tliere will come, I hope, to the lands in which that wealth is used far greater rewards than we can receive thereby. The principle and practice I am now advocating are not strange to you. Your countries have gone to Great Britain, to Belgium, to France and in part to Germany and Italy for funds with which to develop your own lands just exactly as we ourselves did in the last century. The money that was thus invested in your lands and in our land from abroad brought, of course, a reward to those that loaned it as it should have done, but it brought a far richer reward to your lands and to ours. Our great industries and railways and utilities were in no small de- cree due to it. By that building we have been gainers. In greater or less degree the same is true of every land here represented. Now, but with a new spirit of service, we must take up this duty ourselves. We were not able to do it before the war. Others are not able to do it now. Your peoples can no longer call upon Vienna and Berlin and Paris and London as they did because things have changed. There are other problems yonder, problems of great difficulty which they must needs face first, and while in some measure as we all know some of those nations may still be able and willing to continue this fruit- ful investment of their funds abroad, the ability to do so has been very greatly reduced. That ability has come to us with great increase and now we must adjust our commercial vision to the opportunity which Providence has placed in our hands. But with that adjustment of vision and on that ability must be superimposed always the spirit of service. I hope to see the constructive and the development commerce of the United States take the form whereby, the securities of all the lands here represented shall be readily sold in the markets of th% Unitd States, not merely national securities but municipal and industrial and railway and corporate securities. 1 hope to see developed here, and soon— the sooner the better — an appre- ciation of, interest in and a reaching out for the securities which the countries of South America shall offer in our markets. From that process I hope for a two- fold result which can only be helpful if we can keep out the spirit of grasp and greed. I look first, as an American, as an officer of the United States, for a three- fold benefit to the United States from investment in the securities of all the lands ■ you represent. I look to the direct return from the investments, to the normal flow of trade to us from operations thus carried on by the use of American capital in your countries, and to the development of wealth by the use of this capital in your lands which shall add to your buying power and so to your ability to become larger customers of ours — three real and definite contributions to our prosperity - from this process. But, on the other hand, in any broad view of the matter the larger gain should^ be yours as the larger gain in the past has been ours. By the development of the untouched lands, by the bringing into use of the unused resources, by the disfcovery of riches that as yet I think you do not know and we certainly are not aware of, by the expenditure of large sums in the employment of labor in your countries, by the organization of the countries for a larger and more rapid eco- nomic growth — in all these ways the use of our capital abroad on fair and generous terms should be mutually constructive and generally helpful. We should want you to know and to understand and to desire that the United States profited as I have 26 SECOND PAN AMERICAN COMMERCIAL CONFERENCE suggested. We should want to know on our part, and to desire that the larger and the more permanent gain would be yours. This, it seems to me, is the only safe ground of international commerce. When it is done upon a constructive basis, when it passes far beyond the mere competitive trading of the hour and builds up both parties to the contract— then and then only I am willing to work for its extension at present and in the coming days. The war brought conditions in South America into an unusual state and there is now going on a very rapid process of change. It may interest you to have stated here, though I assume that you are all more or less familiar with it, the fact that the nations of South and Central America in their trade with the United States during the calendar year 1918 had a credit balance against the United States -of approximately four hundred million dollars. The largest sharers in this creait balance were Argentina, where the credit balance was nearly a himdred and twenty- two milHon dollars; Chile, where the credit balance was almost a hundred million dollars; Mexico, where the credit balance was sixty-one million dollars, and Cuba, where it was over fifty-one million dollars. On the opposite side of the account the nations which showed a balance due us were Panama, twelve million dollars; the Dominican Republic, nearly eight millions; the British West Indies, six millions; British Guiana, fivg millions, and others under five millions. The result was a favorable balance for South and Central America against the United States of a little less than four hundred million dollars. It is certain, of course, that in very large part that was brought about by war conditions which will be familiar to you all and into which I need not now go. We may, however, bring to your attention certain facts of the first four months of 1919 which will indicate the state of change which is going on. For example, during the calendar year 1918 we bought from Argentina twenty-two million dollars' worth of hides. For the first four months Of 1919 the amount is less than four million. We took hides from Brazil in 1918 to the extent of nearly three millions of dollars; for the first four months of 1919 the amount is six hundred and sixty-nine thousand dollars. We took linseed from Argentina in the year 1918 to the amount of twenty-three millions of dollars. For the first four months of the present year the amount is a little in excess of two and a quartei millions of dollars. We took from Argentina wool in 1918 to the amount of almost a hundred and nineteen millions in value and in the present year in the first four months a little less than eight millions in value. A somewhat similar comparison runs through other products. I mention it only that there may be made clear to you a state of change, a condition in which we may not, unless things alter, assume the continuance of this four hundr£d million dollars of balance in your favor, and I wish to point out that there are certain products of South and Central America that we greatly need and which we should Hke io have offered, for we do not and cannot produce them ourselves. In this way our neighbors may have the larger balances against which to buy the goods that we hope we may be able to sell them to mutual advantage. We should like to see a development in the business already reaching con- siderable proportions of skins and pelts as those of nutria, rabbit, etc., the business in vegetable oils, waxes and gums, the business in timber and cabinet woods, some of which are being (we are informed) exported from Brazil to Norway but are practically unknown to most if not to all of our manufacturers. There are ex- tensive supplies of lignum vitae and boxwood available in tropical South America. There are veigetable fibers that we need, some of which are not even known in the regions where they grow. There are special tropical products such as mandioca flower from Brazil used in the manufacture of starch and glue. There are medicinal plants and vegetable dyes of many kinds and minor minerals not yet exploited, such as thorium and zirconium and others. I mention these things not in any sense as desiring to give you a perfect picture but a suggestive one, showing the avenues to a peace trade of a constructive character which should enable the countries to the south of us to grow as their own resources and to buy from us as they will against the sales of those materials to us, so that both of us may get what we need. I am, of course, aware that the prices at which we are at present able to offer many goods to South and Central America are lower than the prices that are now being offered by such of our competitors in Europe as are able to offer them at all. We are advised that our European competitors in their need for raw materials are offering prices for them in South and Central America higher than we are paying. That is natural under the circumstances. Their need is vital. TUESDAY MORNING SESSION 27 As against that we have, of course, only the weapon of trade (if I may use that phrase coming from an archaic time when one spoke of the "weapons" of trade as having edges and points), we have as an offset our present ability to quote lower prices than our European competitors are, at least for the time, able to offer. We rejoice heartily in such transactions as that which but recently took place in this country when the bonds of the city of Rio de Janeiro were taken so eagerly that double the amount could have been readily placed. That I regard as an admirable beginning. We rejoice to know that other South American countries are seeking loans here for the development of railroads. We hope and believe, we certainly desire, that the terms on which those loans are to be made shall be constructive terms, constructive for the countries getting the loans, and that in them there shall not be hidden away any jokers which shall give to any one an undue power over the industry, the commerce or the transportation of the country to which the loans are made. We must deal as brethren, side by side, for only so is there any permanence to our mutual prosperity. I want to suggest to you a few practical considerations on the subject of foods, and to lay before you a few facts respecting certain foods which we have and desire to sell and which our friends in South and Central America would, if they understood them, probably desire to buy. We do not now supply them to you in large quantities as we do to others. It has been my own belief that the peculiar attitude of the South and Central American countries toward these particular foods has arisen from a basic mis- understanding of their nature. There have been placed before me by the United States Tariff Commission, because it is not a matter which is within their care, the facts respecting certain grades of manufactured foods as we may call them, including canned foods, dried fruits and vegetables. These I venture to suggest for your consideration, not as a matter of complaint but because we think there is an opportunity for service. We furnish to Great Britain great quantities of certain grades of food run- ning up into the millions, but these are not imported by South and Central America because ol duties sometimes amounting to 200% which are prohibitive in their effect, so that there is no revenue received from these goods by the nations of the South nor is the food used. These are cheap foods, and, as I believe food is high pretty much all over the world, this would seem to be an opportune time to call attention to any possible relief from high prices. Into Great Britain in 1913 we shipped canned fruits and vegetables to the extent of $4,275,000 in value. We sent them to Argentina to the amount of $35,000. We sent them to Brazil to the amount of $26,000. We respectfully suggest that they would be found as palatable and healthful in one country as in another. The reason lies in what is apparently a belief that these are articles of luxury. As a matter of fact they are articles of the commonest consumption in the homes of the poor, they are cheap foods, not dear ones. We sent into Great Britain these same goods in 1915 to the amount of $5,500,000, into Argentina to the amount of $16,000, to Brazil to the amount of $10,000. Why should the one have these cheap and palatable foods and the other not have therrt? We do not wish in any way even to sug'gest intrusion into matters of domestic concern. That is not our purpose. We merely wish that the subject be considered, for the United States is the largest producer in the world of these food products which are bought by many foreign nations. We make them abundantly and of good quality and we sometimes wonder why one nation accepts and another rejects that which is apparently for the benefit of the average man and woman of any country. I might pass to the larger field of canned products in general and point out to you that the duties imposed in Latin America are frequently 200%, so that it is impossible, except in the very small way mentioned, to furnish these goods at all. As to the product which we make in greater quantity than any other country in the world, canned and evaporated milk and cream, we find the same condition prevailing. While we may send to Cuba 600,000 cases of canned milk in a single year, we are prevented by the duties from sending like quantities to other countries to the south- ward, which are thereby deprived of a food at once nourishing and healthful, which keeps in any climate and which is used in other parts of the world for the daily needs of the ordinary family. The sole point I feel justified in urging in this matter is that these are not articles of luxury, but are articles of cheap and every day consumption. •1M.« 84-5, 331,000. i.EX.*l,I51,376,000. C A N A D '<--~I£i*l. 996,707,000, ■ ^ s, <^^ ^ GOMMEEGE WITH THE VKJRlA sl^ .N>v,-vs.~^\ IMPORTS ♦ 3, 031,304; 721 ~ sf, ^^■^^ SW" EXPORTS te, 149, 392,647 J>'s'^^'^ \Nx TOTAU » 9, 180,697, 368 s^V .N^^O N ' "^ -^ "^ ^ ^^ lO N^ > > N \ eOMMERCE -WITH liATlN AMERICA ARE/L A 3,603,910.3 "^"^ ij^gX s!^ EXPORTS * 665,93S,S39. ^N>>-i \\ - sxTOTAU- 4 1,791,175,136. -^ ^-' C >-• \POPGLATI0N 106,062,297 , ^ <. AREA. 18,045 3Q.MI. VaP. 795,432 . IM.# 17,400, 000. EX.* 22.445,000. TOTAI. ♦ 39,845.000. rZestaro L 767, 168 Sai \POP. IS,160,369 )iM.»HZ,ooo,bboi, 'I tElO.OOO.OOO. IB.»3S2,0OQ00l AEEA44,ZIT $9.^1 POE 2,406,117 IM.* 372,573,000- EX.4366,646;000. TOUT/ *63S,419, 000. ^■O ,4REA 10,203 aOJvU. POP. 1,955,800 IM. * 10,000,000. KX. * 13,000,000. T0TAL»23,000,00,0, AEEA4S,55a SQ.MI. POK E.003,S79 IM.»a,39Z,000. EX.* 7,310,000. . TOTAL*16,802,000. AE2EA13,176^Q.MI. POP. 1,267,722 IM. 4 6,869, 000. EX.4i6,050,000. TOTAL* 22,919,000. AEEA.4T997 SQMI. PGP. 689,691. IM.* 6.393,000. EX. 4 5,975,000. TQTA1j4 12, 366,000 ^' r DomoiffO AREA46,332.3Q.Mt POP. 592,675 IM.* 6,-293,000. EX..-* 8,030,000. TOTAL *!•*-, 323. 000. BOUNDAf?/£S OF caUf/TK/ES ONLY APPROJf/MA TE. AREA 20,849 5Q.MI. P0P.430 701 IM.* 5.595,000. EX. *11 382,000. \. TOTAL#i6.9770O0. |-SEA29,2l9 8q.MI POP. B86,891 IM.* 9, 223.000. EX.» 5,624; 000. .T0TAIJ14, 647000 PAN AMERICAN UNIOU and Mapir^/'i Commerce fibres forCsno,771 ,... . WENEZUELAV &™V';'4/S^^^M'za,9z9,ooaf IBRITISH 33OO0.\ W G iCOLOM IT JrlM.* 23,334,000...;.j DUTCH 1 I AMA7 h.ybO' 533,91631 >.4-,500. aMPORT&-': '*6^6E4,00l Linwi^ EXPORTS »90,60T,000. TO, \\^>^^>\v ,^\^>\V ' ySREA 1I6,6&0 6Q.MI POP. l.BOO.OOO M. ftlO,lT?,o5o. EX.» 16,309,000. TO.* 26,466, 000. 514,S97SQ;il,\ OP 2,520,536\\\' BOLIVIA' 1M.»13,OS8,000.' iK..46i,5aa,ooo. ,T0.* 74:680,000, \^ '' ^ IMPORTS ♦ei4,'*61,000. \ ( \\ N EXPORTS #290,932,000. O TOTAb^ 4505,393,000. mhioi >\ 'N aN\ AREA £91,03E .SO.M POP. 5,000,000. IM.ft 129,603,000. EX* 258,985,000. To.* 369,588,000. ^ SioJanecro 'Scxritos VcUparctzsOt Santiago MfiREA 1,153,118 POP. 8,412,030 ^^$§:;^:^$<^ fARGENTINA" BuenxJsMres . \^ AREA 171,814 POP. 1.000.000 1M.» 4.946,000 EX $67305.000 TO.«Il.ZS1.0oo tt&'iM. 178, 933,000. '-^EX. 53 3, 665,00 .\TOTAL ■ „_ 'M7lZ,598fieo)£ahiaSiznca, Montevideo' AREA 73,17S. POP. 1,378,808 IM.* 38,701,000. EX.* 96,217,000. T0.-tl34,918,000. P.Morvtt>\ iSoTitcuCnxx PAN AMERICAN UN/ON BOUNDARIES Or COU^/TK/ES ONL Y APPKO^-ZM^ T£ 30 SECOND PAN AMERICAN COMMERCIAL CONFERENCE If, now, I may speak of an article which is rapidly developing in this country and has been found of great value in humble homes, dried or dehydrated foods, I find that our dried fruits were supplied to Great Britain in the year before the war to the value of over $2,225,000; to Argentina, $47,000; to Brazil, $55,000. The reason for the difference is the same, these useful and inexpensive food products are shut out by duties which seem to us to be based upon the misconception that they are articles of luxury. I should not have ventured to intrude into the field that I have thus briefly touched if it were not for the fact that the world at large presents this curious picture: Europe, hungry and in places starving, is calling upon us and upon some of you for all the products we can send, so that we have had to postpone some of our commercial trade for the sake of great shipments of food, while side by side with that exists this curious situation in which large quantities of cheap, nutritious and palatable foods are in effect barred from entry into countries which we feel reasonably sure would benefit by their use as others have done. Finally, gentlemen, I must end as I began. The spirit of conquest by trade has received a mortal blow. It can.no longer prevail in the world. I do not argue that all the merchants and manufacturers of the United States are unselfish men, for that statement would be too sweeping. I do not suppose that you would argue that all your importers are men whose sole conception is that of the national pros- perity and good. Probably you have your share of selfish men as we have. None the less, the world's conscience has taken a great step forward in these last five years and the gospel of gouge and greed is discredited in the business world here as with you. And when we come into your markets we come with the spirit of friends. I hope we shall bring the means to serve you in such a way that while we gain thereby you shall be the larger gainer^ DIRECTOR GENERAL BARRETT: We are now going to take up Brazil, and I will ask the Brazilian delegation to come on the platform. I have pleasure in introducing to you, to lead the discussion on Brazi,!, Senhor Langgaard de Menezes, the Commercial Attache of the Brazilian Embassy. SENHOR LANGGAARD DE MENEZES read the paper vvhich • appears on page 116. DIRECTOR GENERAL BARRETT: I now have the pleasure of calling upon Senhor Sebastiao Sampaio, the enterprising — I might say Yankee — Brazilian Consul at St. Louis. SENHOR SEBASTIAO SAMPAIO read the paper which appears on page 121. DIRECTOR GENERAL BARRETT: Now I call for some practical questions regarding exchange of trade between Brazil and the other American countries. MR. LANGWORTHY MARCH ANT, of the Pan American Union: Mr. Sampaio mentioned two or three points that I thought very important. One was with regard to the beef exportation ; the other with reference to manganese. We think we know a good deal about the manganese situation in Brazil in our statistics and I had brought a good deal of knowledge about it when I came, but he spoke of it as though he possessed a certain amount of fresh knowledge on the subject and I think the house would be pleased to hear him say something about the manganese situation after the war. DIRECTOR GENERAL BARRETT: The question is: Because manganese enters so importantly into the manufacture of iron and steel, will Mr. Sampaio tell us what the prospects are for that business after the war. SENHOR SAMPAIO: I do not know much about manganese, but I will tell you what I can. Before the war our exportation of manganese was very small; it was not counted as an export item. But during 1916 and 1917, as I have just told you, all our manganese was exported to the United States, where it was used in manufacturing steel for the war. In 1916 we exported to the United States one million and a half sterling pounds, while in 1917 we exported three million pounds sterling. Before the war the United States imported manganese from many lands, but during the war the quj^ity of manganese was considered and then all manganese imported by the United States was from Brazil. MR. HENRY E. CORONADO (Akron, O.) : The point has been brought out here that one of the principal industries in Brazil is the coffee industry. The TUESDAY MORNING SESSION 31 United States has today developed another industry, the rubber industry, to such great proportions that we Save what is called the center of the world today in the city of Akron, Ohio. Mr. Sampaio only gave us a few statistics about that and I would like, for hira to be so kind as to give us some more information about the won- derful industry of crude rubber in Brazil because there are not only myself, as a dele^ gate from one of the largest rubber companies in the United States, but many other gentlemen here present at this Conference who would like to hear something about that. It is true thafcoffee took a great part in helping win the war and the armies in Europe, but I may say that rubber took the same part also because all the auto- mobiles of the army, all the trucks carrying the ammunition and everything like that were equipped with rubber for the tires and different things. The motorcycles of the army, which carried messages all over the front, had to have rubber for tires, etc. For that reason, may I ask one of flie Brazilians to give us a little talk in regard to rubber. SENHOR SAMPAIO: The world is being supplied with two kinds of rub- ber — plantation rubber and the natural rubber of Brazil. England was the first country to realize that rubber could be cultivated on plantations and today the English colonies have the greatest quantity of rubber — plantation rubber — to furnish for consumption. However, Brazil does not fear the competition of the English colonies with the artificially grown rubber, because the quality of the Brazilian rubber is so superior to that of the plantation product. DIRECTOR GENERAL BARRETT: Mr. Marchant, will you give us just a minute and a half on»that — the future of rubber in Brazil, at least with reference to the trade of the United States? Mr. Marchant is the expert on Brazil for the Pan American Union. MR. MARCHANT: In my opinion the future of rubber in Brazil, in com- petition with the production of the plantation rubber produced in the Malay states, depends a great deal on the ability of the Amazon Valley to feed the people em- ployed in the industry there in its extraction. The reason why the cost of pro- duction in rubber at present in the Amazon Valley is very high is that the valley itself is not put in such a condition as to furnish or supply the food necessary to support the people engaged in its industry. They get their supplies from the south- ern part of Brazil, and that is why, for instance, in the city of Manaos (which is the capital of the State of Amazonia) the cost of living is so high as to appear very fabulous — five or six times what it would be in any other part of Brazil. This condition naturally will be changed as time goes on. There was a great plan organized some time ago to bring about a better arrangement of this sitiiation. The plan contemplated the development in the Amazon valley of farms which would furnish enough produce to support the rubber industry and also the ameliora- tion of sanitary conditions, but unfortunately these various measures could not be carried into effect on account of the financial crisis which supervened in 1913 and became worse in 1914. It is to be hoped that when these conditions are corrected, as they will be gradually, it will be possible for all kinds of good rubber, not only the avia, which gives the best quality — the hard, fine quality which competes in advantageous conditions with the eastern rubber — but also other rubbers which can be produced to advantage. MR. CHARLES A. LAMSON (U. S. Shipping Board) : I rather welcome this discussion here today, Mr. Chairman, because I have been in Brazil for ten years in the Amazon valley. I was one of the earliest buyers of crude rubber in the Amazon and lived there continuously except for two months. Rubber has been my business for a great many years and I began it with spending ten years in the Amazon valley. I was going to ask Senhor Menezes about the rubber situation in the Amazon valley. Roughly speaking, there are 45,000 tons exported from the Amazon valley. I know, and some of you know, that the quantity of rubber from the Malay States, Ceylon, etc., has made it a dangerous problem for Brazil in its exports of crude rubber. They are even growing avia, as well. I think Senhor Sampaio is a little wrong where he states that the quality of fine Para is better. SENHOR SAMPAIO: If I am wrong it is my English and not my meaning. I referred to the quality of Brazilian rubber, and not to the quantity. 32 SECOND PAN AMERICAN COMMERCIAL CONFERENCE MR. LAMSON: I have been a great deal worried through this war that we had to depend on the British settlements for our rubbW. WharTis to become of this great output of Brazilian rubber from the Amazon ? , I believe that today the price of the fine Para rubber was quoted at fifty-six and a half cents. I am frankly worried about the condition of the rubber industry of the Amazon as affected by the planted rubber of the Malay States and I wish to know what measures has the Brazilian Government taken to prevent the annihilation of the natural product. The first year of, the war I suggested that the duties be lowered. I know, of course, that the revenues of the Stales of Manaos, Amazonia, and Para were mainly derived from the revenues from crude rubber shipments; also the import duties which the Secretary of Commerce has referred to are is many cases very, high. Those duties must be reduced, in rriy opinion, to cheapen the food, supplies for the rubber gatherers of the Amazon Valley. With the cheapening of food supplies and with lower export duties, the Amazon rubber which right in our doors and in many v/ays is better compared with East Indian rubber, should be protected. The problem of a greater production of natural rubber is not so much a question of food supply as of larger population in the Amazon Valley. If there had been a double popula- tion in the Amazon for years we would have had double the amount of rubber from the Amazon. The whole population of the Amazon Valley worked in rubber, and the reason why they did not produce more was because there were no more people. I will welcome anybody who will tell me what is the future of the supply of crude rubber from the Amazon Valley. SENHOR SAMPAIO: I will reply first to the point on the economic future of rubber. The economic future of Brazilian rubber is absolutely guaranteed. The rubber production of the English colonies may be larger in quantity than Brazilian rubber and maybe in competition of price the facilities about the plantations of the English rubber give little advantages of slight differences in price in favor of the English rubber. But Brazilian rubber is of a much better quality because it is not planted, it is natural ; there are great forests of it, while English rubber is planted and cultivated artificially. That is the difference. Experts all over the world are of the opinion now that Brazilian rubber, because it is natural, is the best, giving as it does more and better industrial results. It is also more durable. DIRECTOR GENERAL BARRETT: Mr. Coutinho, you have just returned a , short time ago from the Amazon district. Can you give us a word? SENHOR JOACHIM De S. COUTINHO, of the Pan American Union : The rubber situation in Brazil is very poor. The cost of production is very much higher than in the Malay States. IXiring the war there was a real crisis for rubber. Great amounts of Brazilian products were just st&red away because there was no chance to export them. During the war it was very hard for Brazilian exporters to secure licenses to send rubber over to the United States. The only thing that I see which will help the rubber situation is for either Brazilians or Americans to establish rubber factories in the rubber region. The Para rubber is too good for tires. I know of several people who use Para rubber in tires and they say the Brazilian Para rubber will last three times longer than the ordinary tires. Of course, the price is a little higher. And what the tire manu- facturers want is poor rubber so they can sell more tires. I don't see any other solution for the problem unless factories are started in Brazil. Brazilians have been thinking seriously of this, and if the idea can be carried through, rubber will be the second industry in Northern Brazil. MR. CHARLES RAY DEAN (Washington) : This is a practical su,ggestion. We are hearing from these different gentlemen of the undeveloped resources of their country. We are hearing from our Secretary of Commerce of the free avail- able capital which will be used in helping to develop those resources. Now, it v/ould seem very helpful if these gentlemen representing these various countries would make specific suggestions with regard to the resources that are to be de- veloped and it might be well for this Conference to have a committee appointed to gather together the definite data that these gentlemen bring so that it may be used afterwards in aiding financiers to bring about the developmerit of those re- sources. DIRECTOR GENERAL BARRETT: A full report of the proceedings of this Conference will be published, in which will appear all that has been said or pre- sented to this Conference. TUESDAY AFTERNOON SESSION 33 We are obliged now to pass on from further consideration of Brazil. As I said last night, we have twenty countries to consider, and the time is limited. I want to say in closing the discussion on Brazil that these gentlemen are ready to answer any questions that may be submitted to them in private conferences. Passing now to Chile, we have already had the privilege of hearing the notable remarks of its distinguished Ambassador at the inaugural session. This morning, I take pleasure in calling upon Seiior Ernesto Montenegro to lead the dis- cussion on Chile. I am very glad to introduce him to you as the able representa- tive of one of the greatest newspapers in Latin America, "El Mercurio," of San- tiago and Valparaiso. SESOR ERNESTO MONTENEGRO: Mr. Chairman, ladies and gentlemen: I come to speak before you without any preparation, because I thought it was agreed to postpone the Chilean discussion for a while. What I have to say now as the representative of a Chilean paper is that we feel, as newspapermen, that we have a very great part in moulding North and South American sentiments and interests. I think the newspapers in both the English and the Spanish language can do very much to further the unanimity of sentiment between the two countries. As a representative of "El Mercurio," I can only say that this newspaper seems to be predestined to do this work, because it was founded more than ninety years ago and is' today one of the strongest papers in Chile and one of the oldest newspapers in our American Continent. You all know very well what the Amer- ican press has been doing to mix together and make one entity of this immense territory that we call the United States. You know very well that without the press, without the daily papers, the periodicals and the magazines, this enormous land, populated by so many races, by so many different people of different lan- guages, never would be one nation as it stands now. Without the help of the press, without this marvelous moulder of sentiment and ideas which the press has been diffusing through this territory of all that is great and good to make this great melting pot one solid nation in the United States, that would never have been accomplished. The American press can do very much to cordinate the sentiments and in- terweave the interest of the two Americas, and as the representative of "El Mer- curio" I think you will excuse me for saying that we feel glad of what "El Mer- curio" has been doing, has done for the furtherance of this interest and for the coordinating of sentiment and ideas of the two great races of America — the Eng- lish and the Spanish. In following discussions I expect my colleagues- of the Chilean delegation to be ready to answer any questions that you like to put up to us. Now I simply congratulate you for this splendid meeting in which so many interesting, practical things are being discussed and which I am sure will bear very fruitful results. (See page 129 for Sr. Montenegro's pa:per.) DIRECTOR GENERAL BARRETT: The discussion on Chile shall be con- tinued in the afternoon session. (Announcements.) Adjournment. AFTERNOON SESSION. The Conference was called to order at 2.45 o'clock by Director General Barrett who presided over the session. (Announcements.) DIRECTOR GENERAL BARRETT: Continuing this morning's session, we shall now resume the discussion on Chile. The Chilean delegates are here to answer any questions which you might have in regard to- the commercial relations with Chile. MR. R. W. ORCUTT (New York) : I should like to ask Mr. Montenegro what steps are being taken in Chile today \o develop its manufacturing. SR. MONTENEGRO: I think that is a very broad question to put up and so it could be answered only in very general terms. Since the war started in 1914, Chile received an impetus toward the development of its industrial resources 34 SECOND PAN AMERICAN COMMERCIAL CONFERENCE in proportionately the same way as the United States received in the general trade business, so, as soon as the imports began to fall, Chile by way of necessity, by the spirit of its inhabitants, began to show a determination to develop its own resources and to manufacture with its own means the things which it most needed. Take, for instance, the manufacture of paper. They have been for about ten years manufacturing gummed wrapping paper in Chile at the Puente Alto_ Com- pany, supplying the needs of the merchants in that product but -not venturing to go any further. Since the war started, however, this factory has enlarged its plant and now I think has succeeded in making a better kind of paper, not quite so good as writing paper, but we expect that we will have something of the kind in the near future. In the furniture and in the foundry business, we have developed very materially, as was shown at the Exposition we held at Santiago, in 1915 where almost every home article was manufactured in the Chilean factories and, what is more important yet, by Chilean workingmen. Many of these concerns are foreign named^French, English, American — but all the personnel is national and this, I think, shows very plainly the disposition of the Chilean race to assimilate and work together with foreign industrial men. SR. H. E. CORONADO: I would like to ask a question regarding the con- dition of the highways and roads of Chile. SR. MONTENEGRO: I think I can say that the Chilean roads are no worse than other South American roads. On the other hand, Chile has been trying through two agencies to improve the roads. We should begin by mentioning the unusual condition of the country- — a very rough, mountainous land that makes it very difficult and expensive to improve the highways. Under this conditions Chile has been working for many years to improve its> public ways, and we have two agents working — ^the Government, which improves the general road, what we call "el camino real," and the municipal roads that are improved or should be im- proved by the municipality. In and around Santiago you will find many good roads. I may cite an example of what has been done. We have been making trips from Santiago to Concepcion, about 3D0 miles, in record time without accident and you should con- sider that the country, as I said, is full of hills and rivers and very difficult natural surfaces. Very much depends upon the material that you put in your roads to improve them, and so the principal aim in Chile now is the conservation rather than the building of the roads. While we have spent a great deal of money in fixing up the roads, I must confess we have not developed yet the means' of keeping them in good repair. In this regard, I think the American engineers can teach very useful things to our road builders. DIRECTOR GENERAL BARRETT: There being no further questions on Chile, we will now pass on to Colombia. I take great pleasure in introducing to you Seiior Francisco Escobar, the Consul General of Colombia in New York, who will lead the discussion on his country. SR. FRANCISCO ESCOBAR read the paper which appears on page 138. DIRECTOR GENERAL BARRETT: We have here Mr. Jose M. Coronado, of the Pan American Union staff, who has just returned from Colombia, and I am sure he will be glad to, answer any question he can. I would like to ask him about the development of ports on the west coast of Colombia; also the develop- ment of railroads into the interior. SR. JOSE M. CORONADO: On the Pacific Coast nothing has been done. The Government has just signed a contract with a firm in New York for the build- ing of a port at Buenaventura, and a pier, because the water is very shallow there, and they are going to start this work right! away. (See page 139.) MR. C. VOGEL (Philadelphia) : Then the only way to get into the interior there would be via Barranquilla? SR. CORONADO: By Barranquilla and Cartagena, both. CAPTAIN A. V. DALRYMPLE (Washington):! would like to know if any- thing is being done to standarize the railroads or the different lengths of railroads running up to Bogota. I understand there has to be a trans-shipment of freight going up to Bogota. That is, you have a short section of railroad and then you have some water transportation. Is the Government of Colombia doing anything to standardize this method of transportation so as to avoid trans-shipment two or three times? TUESDAY AFTERNOON SESSION 35 SR. CORONADO: The Colombian Government has a forty-mile railroad that will be lengthened, and already five million dollars have been appropriated for that work. The commission is now at work, though it will take several years to complete the project, of course. They have a special service now called the mail service. There is a special boat leaving every Monday afternoon and making connections with all railroads on the way and reaching Bogota the following week by Tuesday or Wednesday. The other way takes about fourteen or fifteen days to go. CAPTAIN M. L. McCULLOUGH (Washington) : I would like to ask whether the Government of Colombia is interesting itself in any way- in aviation as an aid to the commerce of the country. SR. CORONADO: It would be a great help for the country and the Gov- ernment has had several offers already. The Handley-Paige Company and another English concern have made offers to Colombia, but the Government does not want to accept them or give the privilege exclusively to anyone in particular. Anybody can carry the mails and they are going to make application for that service in the different countries The Consuls General of Colombia in New York, London, and Paris will take care of the applications in the different coun- tries and the Government will consider the best proposals on the matter. DIRECTOR GENERAL BARRETT: Now we come to Costa Rica; we are very fortunate in having with us one of the most distinguished citizens of San _^Jose, whose name is well known there and in this country — John Meiggs Keith, who' although ill and indisposed, has consented to come here and say a few words of a practical nature in regard to the commerce of Costa Rica. MR. JOHN MEIGGS KEITH (San Jose, Costa Rica), read the paper which appears on page 144. MR. BOAZ LONG, American Minister in El Salvador: Would you mind giving us just a little idea of the. extent of the development of mines near Punta Arenas on the western coast? MR. KEjITH: Costa Rica has only three large and prosperous mines, one the Abengares, which produces about fifty-five thousand tons a month ; the Aguacate mine which produces about fifteen thousand tons a month, and the Union mine, more or less the same. DIRECTOR GENERAL BARRETT: Ladies and gentlemen, we are going to pass on to Cuba. It is necessary for me now to absent myself ; so I am going to turn over the meeting for the time to the First Assistant and Secretary of the Conference, Mr. John Vavasour Noel. MR. NOEL, presiding: Ladies and gentlemen, the next speaker on the program is a brilliant diplomat from Cuba who will tell us about that country. I am sure that Seiior Porfirio A. Bonet, Commercial Attache of the Cuban Legation, will be able to give us some interesting information. SR. PORFIRIO A. BONET read the paper which appears on page 146. SR. BONET: I want to state before I go that the Cuban Legation has a commercial department where we would be very glad to give all kind of in- formation regarding commerce. MR. NOEL, presiding: We are fortunate in having with us today an able and intelligent official from one of the countries in South America that has a great future. I refer to Senor Gustavo R. de Ycaza, Consul General of Ecuador, who has left his occupations in New York to come especially to say something to us about his native land. THE CONSUL GENERAL OF ECUADOR IN NEW YORK read the paper given on page 156. MR. NOEL, presiding : We have on the program now - a very interesting country which we know a great deal of. It is Guatemala. I have the honor to present Senor Francisco Latour, Charge d'Affaires of Guatemala, who will give us some illuminating facts about his picturesque land. 36 SECOND PAN AMERICAN COMMERCIAL CONFERENCE THE CHARGE D'AFFAIRES OF GUATEMALA read, the paper which ap- pears on page 158. ME. NOEL, presiding: If any questions relating to Guatemala may come into your mind, Mr. Prem, Adviser to the Special Guatemalan Mission, and Mr. Arenales are also here. SR. H. E. CORONADO: I should like to ask a question reigarding the ex\ ploitation of the mines, whether or not the mechanical tools that have "been used so successfully in the United States have been used in the mines there. . This applies especially to rubber goods used, for instance, on transmissions. Leather is very scarce today on account of the European war, and rubber has been of won- derful value in the mines of the United States. SR. LATOUR: There are many mines there; unfortunately they are not very well developed as yet, but in those that are developed we use as much modern machinery as we can. I should be very glad to discuss this matter with you pri- vately, for it is something in which I am interested. MR. NOEL, presiding: We are honored today by the presence of a member of our Governing Board, M. Charles Moravia, Minister of Haiti, who was for a considerable time Consul General in New York and who has a deep and funda- mental knowledge, not only of the commercial situation, but of the intellectual development of his country, of which he is one of the brilliant literary men. I take pleasure in introducing Mr, Charles Moravia, the Minister of Haiti. THE MINISTER OF HAITI read the paper given on page 166. MR. NOEL, presiding: The next country that is going to be discussed h Honduras. We have with us today Senor R. Camilo Diaz, Charge d^Aflfaires^ whom I take pleasure in introducing. THE CHARGE D'AFFAIRES OF HONDURAS read the paper given on page 171. MR. NOEL, presiding: We will now proceed to the next country on the program. Gentlemen, we have the honor of having here today the distinguished Charge d' Affaires, Senor Juan B. Rojo, one of the brilliant young diplomats of Mexico, who will now address the Conference. THE CHARGE D'AFFAIRES OF MEXICO read the paper given on page 175. MR. NOEL, presiding: On account of the unavoidable absence of His Excellency, Senor Diego Manuel Chamorro, the Minister of Nicaragua, I will ask an able young business man of the modern type from Nicaragua, a member of a well known house of that country, to say a few words -about Nicaragua in its commercial aspects. I take pleasure in introducing Senor Pedro Gomez, of Nicaragua. SR. PEDRO GOMEZ read the paper given on page 178. MR. NOEL, presiding: I have now the honor to introduce to you Senor J. E. Lefevre, Charge d'Affaires of Panama. THE CHARGE D'AFFAIRES OF PANAMA: Gentlemen: I will not take much of my time. My address is rather brief and will be limited to the time allotted to every one of us. I will give you just a little information about my country in a few brief points. (He then read the paper on page 182.) MR. NOEL, presiding: Are there any questions on Panama which anyone desires to ask? MR. R. H. HEPBURN (Philadelphia) : Wliat are the agricultural develop- ments in the neighborhood of Chiriqui. SR. LEFEVRE: It is one of our largest and most progressive provinces, the main industry there being cattle raising, and agriculture follows second. Then comes sugar cane, at present a large American corporation, the Panama . Sugar Company, has a large sugar mill. The Government has built in Chiriqui our first national railroad which starts in the lower sections and will be extended to the new sugar region of La Chorrera ; so^ sugar cane is really the next important agricultural item that has TUESDAY EVENING SESSION S? been developed there. Of course, it is a good rice country, not only producing rice for local consumption, but exporting considerably. However, lately the demand for labor in other lines, I would not advise anybody to go into rice unless he went on ai very large scale. The largest trouble would be with the threshing of the grain, which requires certain delicate machinery. The coflfee which they raise makes it self-supporting and also contributes to the necessities of business. (Director General Barrett resumed the Chair.) (Announcements. ) Adjournment. EVENING SESSION The conference was called to order at 8.30 o'clock by the Director General, who presided over the session. (Announcements.) DIRECTOR GENERAL BARRETT: We now pass to the consideration of Paraguay. It is with real pleasure that I shall present to you one of the great constructive statesmen of that country, which occupies such an interesting place in the heart of South America, bounded as it is by, and connecting up, Brazil and Argentina and Bolivia, a country of great potentiality with a wonderful history. The man who will speak to you has done more than almost any other man to make Paraguay what she is at present. I have great satisfaction in introducing to you the Minister of Paraguay to the United States— Seiior Gondra. THE MINISTER OF PARAGUAY: Mr. Chairman— Gentlemen : The pres- ent being a- commercial conference, the Chairman has, with happy thought, applied to oratory the principle of allocation. I shall have then to avail myself of the regulation ten minutes by telling you in substance what might be of interest with respect to the commerce of tny country. I shall begin by saying for you that the figures extracted from our commercial statis- tics are made up in accordance with the old Tariff of Valuation of 1909 for the collection of customs dues — valuations that are now much too low. Accordingly, as may be seen from the recent report of the American Consul at Asuncion, the total, actual value, of the commerce of Paraguay for 1917 amounts to more than 100,000,- 000 francs, or nearly $21,000,000. The figures for 1918— incomplete— are possibly slightly below this amount, due to the rigid embargo beginning 1912. It will be interesting to note that during the first nine months of 1918, in imports and exports the United States stood third and second respectively, as against fourth and eleventh in 1914. In addition let me say that the statistics that we are accustomed to quote, are not exact, because all the foreign trade of Paraguay, an inland country, is effected through the ports of neighboring countries, and oftentimes they are credited to the countries of these ports — this being particularly the case with one important product, quebracho extract. Furthermore, many are the American articles that we purchase in the markets of neighboring countries, through lack of direct ship- ping communication with the United States. Of recent years direct relations have been more earnestly sought, and today the number of consignments made by means of the parcel post is considerable. The war, producing an almost complete stoppage of commerce, imposed — so as to speak — a dietary regime, which is always an advantage when commercial credit is in the question. Favored by this forced restriction and by the enormous advance in the prices of merchandize previously introduced, our commerce has paid almost all the balances of its foreign accounts, and according to the last message of the Presi- dent of the Republic, is well on the road to recovery. Simultaneously with the commercial improvement, a financial reaction has taken place. Strict and administrative' retrenchment has resulted, during the last fiscal year, in producing a surplus of 4,500,000 pesos paper, a circumstance which united with the lowering of the exchange rate, indicated the time as opportune to attempt the problem of stabilizing the value of our currency. Important to the same end are the favorable balances of our trade, through the development of certain industries whose growth may be taken as assured, such as the meat industry — three important American plants having been installed within the past two years — the tanning business, sugar refining and other agricultural enter- 38 SECOND PAN AMERICAN COMMERCIAL CONFERENCE In this regard, the economic policy of my country is that of limiting to its capacity for consumption those domestic products that are not of export demand, or that are of^a disadvantage in competition with like foreign articles. Instead it vigorously encourages the production of those that are adapted to meet competition in the world trade. In this sense the Banco Agricola encourages the cultivation of tobacco, regarding which staple I may say that in the opinion of foreign experts who have made a close study of the Paraguayan leaf it promises to be among the best to be found in the market. The growth of cotton — once cultivated on a large scale, and of a superior quality, is being stimulated. As indicating the importance of this product I may state that Mr. Atkinson, an American expert, has declared that the cotton of Para- guay is one of the very few that might with success compete with that of the United States. Likewise, yerba mate, cultivated, a product formerly found only in its wild state ; generally known as Paraguay Tea, it is commencing to make steady inroads into the markets of the United States and Europe. With these few remarks I have consumed the time that has been assigned by the Chairman. A paper to be included in the proceedings of the -conference, will contain in detail data with respect to our general commerce, and in particular with regard to Paraguay's relation with the United States. In the meantime, Mr. Walter B. Graham, who is connected with the Legation under my charge, and a participant in this conference, will give whatever informa- tion may be desired, regarding matters related to our economic, industrial and commercial conditions. In conclusion permit me to congratulate the illustrious colleagues of the Governing Board and the Director General of the Pan American Union who have so successfully organized this conference. (The paper on Paraguay is on page 184.i DIRECTOR GENERAL BARRETT: Is there anyone here, aside from the Minister, who is prepared to answer questions in regard to Paraguay? Mr. Chandler, formerly of the State Department, now of the Corn Exchange National Bank, Philadelphia, has the floor. MR. CHARLES LYON CHANDLER: Paraguay has a population of six hundred thousand people. It is a great cattle raising country. Tex Riccard, you know, the man who got up the prize fights, went up there and is organizing his big cattle ranches in Paraguay and raising the finest kind of cattle, meat and beef and has had experts come there to look things 'over, and Paraguay is going to be the land of the cheap meats very soon. Asuncion is a beautiful city of eighty thousand people, where Remington Typewriters have been sold since 1896. MR. W. B. GRAHAM (Washington) : There are one or two things I would like to mention.' The Honorable Vice-President yesterday was good enough to mention the Yerba Mate as one of the special products of the country. Now, a great many of you don't know what it is. If you will take care before you leave the Conference here and step into the oflice of the Secretary, you can get a sample of this product of the country. It is drunk by perhaps twenty-five or thirty million people, generally throughout the southern part of South America and a great part of Europe and it is being introduced now into the United States. There are several dealers in Baltimore, Washington, Philadelphia, San Antonio and San Francisco who handle it. It is, in the first place, plfeasant to the taste; in the second place, it is very reasonable and sells in the ground for five to ten cents a pound and one pound of it will last as long as four pounds of the ordinary kind of tea. It contains no tannin, which is the one agent of China tea which is deleterious to the stomach. When you drink a cup of China tea and go to bed you cannot sleep. You can drink a dozen cups of^ Yerba Mate and fall into the pleasantest slumber and sweetest dreams you ever had, and, as the Vice-President stated, you wake up the n_ext morning with a clear head. There is one point about Paraguay and that is it is going to be the great meat producer of South America. Our experience in the United States has shown that their land is good for agriculture only and where the grazing land of the west, where years ago we found agriculture driving the cattle away, where there is less than one-sixth per cent, of one animal per capita in the country, we find in Paraguay the per capita animal population is about 6%. During the last two years there have been three great branches of the United States packers established there — the International Products Company, of New York; Swift & Co., of TUESDAY EVENING SESSION 39 Chicago, and Morris & Co., of Chicago, and at present there are other people on the ground planning further extensions. The only thing that Paraguay needs immediately is better transportation facilities. At the present time all goods sent from Paraguay must be shipped at Montevideo or Buenos Aires. This entails additional expense and a loss of time. If some enterprising shipping concern could arrange bi-monthly or monthly ship- ments direct, they would be assured of a full cargo for return and also be assured of customers down there to take the capacity of the ship. DIRECTOR GENERAL BARRETT: Tell us something about the banking and financing and shipping connections there. MR. GRAHAM: The shipping connections with Paraguay are by way of Buenos Aires and Montevideo. When you make a shipment there it is necessary to have your papers stamped also by the Consul of Argentina or Uruguay. This is an expense in the case of Uruguay but Argentina has arranged so that there is no additional expense. But after the shipping has reached the port, it is necessary to then move it by lighter to a smaller boat for shipment up the river. It takes about twenty-five or thirty days for a shipment to go from New York to Asuncion as a rule, and about the same time for a shipment back. The rate before the war was about $20 a ton, sometimes more, depending upon the quality and the classes of goods. ' It is necessary down there to cater to the domestic wants, to their tastes. For instance, in men's clothing and shoes, they used English leather and followed English styles; for women's clothing they used French styles. They use the metric system, and if I must use a homely expression that George Ade once used, I can give you the principle of their buying in a few words — they give the people what they think they want, not what they want. If the American dealers will do that, they will find the Paraguayans are ready buyers and good payers. DIRECTOR GENERAL BARRETT: The Ambassador of Peru spoke this morning, and there will be nothing further on Peru, but Mr. Alvarez of Peru is here to answer any question, as also Mr. Hurtler and Mr. John Vavasour Noel. We are now ready for any question in regard to Peru. Then, as there are no questions I will give Mr. Alvarez three minutes in which he can say something practical about Peru. SR. CARLOS ALVAREZ CALDERON, of Peru: The general conditions are extremely good because the war, of course, has formed a market for our products. Our currency, our rate of exchange has gone up very much indeed until the Peruvian pound is now worth over five dollars. There is much new railway construction contemplated in Peru. We have several projects under study and some of them have been begun. There is the very important one of the Pan American Railway in which several people have been very much interested which will go from the Pacific Coast right into the interior and tap the tropical zone where all the different ports on the Amazon River are touched, and bring the products of that zone to the Pacific side. That, of course, has been studied and there have been several projects. DIRECTOR GENERAL BARRETT: Mr. Noel, we will allot you two and a half minutes. MR. NOEL: The question is that the time allotted to me does not permit me to do justice to the subject. I spent five years of my life in Peru, I know the country and I am ready to answer questions and help anybody who wants to go there. I have done that for years. Some months ago a young man came to me who wanted to know what the opportunities were in Peru and I encouraged him to go there. I am going to refer to him and he can tell you briefly what his experience was as a young American in Peru and what his impressions were. I refer to Mr. Hurtler. DIRECTOR GENERAL BARRETT: Mr. Hurtler, we will be glad to have you occupy the rest of that time. MR. HENRY HURTLER (New York): About a year and a half ago I left for Peru where I was seven months. I traveled from the northern most port of Payta down the coast to Mollendo. I visited all the interior towns and also Lima. I found the people very friendly and opened a business especially with Americans, ARGENTINA FOEEIGK* GOMMERGE 1917 TOlAli *71E,598.000. MEXICO URUGUAY NOR.VM.Y"- URUQUA-«r rREVeH COLONIES f^i/r /iMemcA^ (/a//om TUESDAY EVENING SESSION 41 and I can only say that my experience in Peru has been very pleasant in every respect. I believe that it is a field which the American manufacturer can enter with success and benefit, and I hope that in the very near future the American manufacturer will show more interest in the Peruvian market. The financial conditions are very good, the houses are of the highest order and would like very much to trade with the American manufacturers, who should send their representatives into that market. They will find that the business results will be very encouraging. I hope some day to go back to Peru and know more about the country, which I believe has very great possibilities. DIRECTOR GENERAL BARRETT: We will now proceed to Salvador. We have here the distiniguished Secretary of the Legation, Sefior Atilio Peccorini. THE SECRETARY OF THE LEGATION OF EL SALVADOR read the paper on page 204. ^*' DIRECTOR GENERAL BARRETT: Has anyone here a question about El Salvador before we pass from the consideration of that country. MR. y. L. HAVENS (New York) : I would like to know what the condi- tions regarding railway connections between Salvador and Guatemala are. SR. PECCORINI: There is only one railroad line in project and that has been for some time, but they have not been able to carry it through to execution. MR. HAVENS: What is that on account of? SR. PECCORINI: It was on account of the war that the execution of the project has been delayed so long. Communication at present by railroad reaches very nearly to the frontier of Guatemala, and there is only a short piece of railroad to be built so as to reach as far as Zacapa and from there to the Atlantic. DIRECTOR GENERAL BARRETT: If there are no other questions about El Salvador we shall take up the discussion on Uruguay. I have the pleasure of introducing to you Sefior Jose Richling, Consul General of Uruguay at large. I have known him a great many years. He is one of the most efficient representa- tives of any Latin American country in New York and he represents a country today which, though small in area, plays a mighty part in the commercial and political development of Latin America. There is no President of all Latin America that I think we can respect more than President Brum. You remember the remarkable visit he made to this country recently and the great sentiments of Pan Americanism that he expressed. Uruguay is in every way endeavoring to build up Pan American commerce, oflfering opportunities to the capital and to the business of this country, and I am sure that a few words from Mr. Richling will be most appropriate, instruc- tive and interesting. THE CONSUL GENERAL OF URUGUAY AT LARGE read the paper given on page 206. MRS. JOAN CALLEY (Washington) : Would you tell us something about the moving picture theatres of Montevideo and Uruguay? SR. RICHLING: Practically everything important from the United States is sold by contract to the concerns there, but I think there is something which could be done still. DIRECTOR GENERAL BARRETT: Can you tfell us just a word about the present terminal and dock facilities of Montevideo? We have a great many ques- tions about that. SR. RICHLING: The port of Montevideo is our pride. We have spent there about twenty million dollars and we think it is second to none in the world. Ships go to the docks and unload there very quickly. The charges of the port are supposed to be the lowest in the world, they are practically nominal as we are encouraging tonnage and merchandise to come to Montevideo even if it is not intended for the country. It goes from there to Paraguay, Bolivia, and even to Argentina. 42 SECOND PAN AMERICAN COMMERCIAL CONFERENCE DIRECTOR GENERAL BARRETT: Is there much demand or opportunity there now for United States capital? SR. RICHLING: The country, if you will allow me to express it this way, has lots of money now and we are taking care of ourselves, but you know that money is merchandise the same as anything else and whoever offers it more cheaply will have a very good investment, so it is up to the American investors to see that they make the most attractive offer. SENHOR SAMPAIO: You ask, about the navigation and transportation of Paraguay. There are two lines of navigation now. One line comes from Buenos Aires to New York which was started last month. Another line is an old line, started many years ago, from Rio de Janiero into Paraguay serving Montevideo, Asuncion and Buenos Aires. LIEUT. J. P. MOFFITT (Washington) : What is it that we produce in the United States that the people of Uruguay need mostly; on the other hand, what has Uruguay for us? I would like to get your ideas as to just those two points. SR. RICHLING: That is a rather difficult or comprehensive question. For instance, last year what you exported most to Uruguay was sugar — what you bought from Cuba. In former years what we bought from you was machinery; during the war it was iron, steel and coal; and we have tried to trade our wool to you here, hides and everything that we do not sell elsewhere. DIRECTOR GENERAL BARRETT: We will bring this session to a close by considering a country which, though last in thf alphabet, is not least by any means. I am glad to say that we have on the platform here the eminent Minister of Venezuela, Dr. Santos A. Dominici, one of the most popular and best loved of the American diplomats in this city, and Venezuela has named as its special representative at this Conference its special agent in the United States, Dr. Jose Santiago Rodriguez, who stands in the foremost ranks of those men who are informed on all South America and especially his country, Venezuela, the nearest point of which is less in distance from Key West, our southernmost point, than Washington from Kansas City. I have great pleasure in introducing Dr. Jose Santiago Rodriguez. DR. JOSE SANTIAGO RODRIGUEZ read the paper on page 209. DIRECTOR GENERAL BARRETT: Is there any question in regard to Venezuela ? Before we proceed, I want to call to the attention of this audience a most remarkable fact. Here more than twenty papers have been presented by distin- guished Latin Americans, and with only one or two exceptions they have been read in the English language. I wonder how many Americans, under similar .circumstances, could do one tenth as well in Spanish. There has never been in Washington or in this country or in the western hemisphere a more Pan American Conference than this. Up to the present time three-fourths of the discussion has been carried on by Latin Americans ; the United States representatives generally have the habit of holding all those things to themselves, but I am glad to say that this Conference has been characterized by exceptional participation and attendance by distinguished Latin Americans. We will have in our printed proceedings one of the most remarkable records that has ever been printed in any book. (Motion pictures are shown.) Adjournment. s H t> o « o H U H « o S St !iS E ta H o U- K A < nl H w n U' a a s < pq (1*. % T)' < c- 8: V <: a <■ Mh Pi r, X o p w s <: Tl r. (« w < d < ^t K "o Ft! V s H(4 43 WEDNESbAY, JUNE 4, l9l9 MORNING SESSION The Conference was called to order at 9.30 o'clock by Director General Barrett, who presided. DIRECTOR GENERAL BARRETT: In welcomipg you here this morning, there are two or three general observations that I desire to make for the benefit of those who are here for the first time this morning. (Announcements.) I cannot tell you what pleasure I have in introducing the first speaker of this morning. I go back to the time when he was the distinguished President of the Illinois Manufacturers' Association, and I said, "There's a man whom I want to get interested in Pan American affairs." Through his own natural tendency to take an interest in things that were coming on and through my own little efforts, we finally aroused his interest to a splendid point where he led a great delegation of the Illinois Mjanufacturers' Association for a trip around Latin America. On that occasion his eyes were opened as never before to the future of the United States in Pan American commerce and trade. He came back and made a report that attracted the attention of the entire land. From that moment the sun of illumination of this distinguished man began to rise rapidly in the heavens until now we might say, in the opinion of the American people, it is very near the zenith. I have great pleasure in intrpducing to you, as the first speaker of the morn- ing, Hon. Edward N. Hurley, the Chairman of the United States Shipping Board. THE CHAIRMAN OF THE U. S. SHIPPING BOARD delivered the address given on page 223. DIRECTOR GENERAL BARRETT: I am sure you all agree with me that it was worth holding the Conference just to hear from Mr. Hurley those words as coming from one who has been intimately associated with this Pan American movement for nearly eighteen years, as meaning more for the practical develop- ment of Pan American commerce and, therefore. Pan American friendship, than anything that has been said from this platform. Are there any questions you desire to ask Mr. Hurley? DR. ROJO: I was very much pleased to hear the speech of Chairman Hurley, and I wish only to call attention to the fact that the commerce between Mexico and the United States will be tremendously increased with better njeans of ship communication. During the last year Mexico sold to the United States three hundred and fifty million dollars. Think of that, three hundred and fifty millions ! That is 95 per cent, of our exports. We have depended only on railway communication, but I am sure that when we have larger shipping transportation we will sell and buy from the United States at least double that amount. It will be a great assistance for our mutual commerce, if sometime the Shipping Board would consider plans for a larger traffic with Mexico. I would desire to know if Mexico is considered in the projects of the Board. MR. HURLEY: I will be very glad to answer your question by saying that in balancing our fleet and planning for the ships we now have to the respective ports throughout the world, we have Mexico in mind and our plans are very complete. We will be glad to show them to you if you come down to the Shipping Board. MR. W. N. DICKINSON (New York) : I would like to ask Mr. Hurley whether or not they confine the points of call of the fast steamers to Rio, Monte- video and Buenos Aires, or whether they will call at one or two of the ports on the coast further north. MR. HURLEY: We are planning to have a real fast ship and then a slower ship following, and divide the ports of call between the two, giving -service to both, not interfering with the fast service between New York and the main ports. 44 SECOND PAN AMERICAN COMMERCIAL CONFERENCE MR. DICKINSON: The fast ships would call at the three capitals, the others pick up the individual points? MR. HURLEY: The other ports will be divided between a real fast ship and a slower ship. MR. H. RICHARDS, Jr. (New York) : As the weights and measures of South America are metric, I would like to ask if it would be possible to have the shipping on these lines arranged to be in metric weights and measures. MR. HURLEY: ' I have not taken that up yet. I am troubled enough with trying to get the ships themselves. MR. S. L. WEAVER (Los Angeles) : I am interested in this trip on the Mount Vernon to South America. May I ask if only delegates are entitled to go on that trip and ,how soon we will have to make reservations ? MR. HURLEY: Between August 1st and November 1st. And first come, first served. We cannot draw the line and say who 'is going to go, but it has to be representative business men and bankers and men who are seriously thinking regarding the future of Pan American trade. No tourist will go. MISS C. E. MASON (Pan American Round Table) : I would like to ask if this is to be confined entirely to gentlemen interested in commercial, financial lines or whether it would be in order for a special delegation of women to go preparatory to their later larger meetings in South America — to be sent there to make preliminary arrangements for their lafge meeting in 1921. MR. HURLEY: We will be very glad to include a delegation of ladies. MR. WING B. ALLEN (New York) : I would like to inquire if it will not be possible to take several ships. It seems to me I know about seven thousand people who want to go. Can you only give us one ship? MR. HURLEY: We are lucky to get that. MR. ALLEN: A prominent merchant on Fifth Avenue approached me the other day and wanted to know if some such ship could not be arranged. He said there would be a thousand merchants on Fifth Avenue in New York who would like to take that trip, to investigate the markets down there, to become acquainted with those countries and to extend a friendly hand. Can we only have one ship? MR. HURLEY: You are going, to have weekly sailings in about two or three weeks after that. We can not take them all on one ship. MR. C. S. WELLS (Boston) : I would like to ask Mr. Hurley if the direct sailings are being planned from other ports than New York. Will there be any sailings from Boston? MR. HURLEY: No, sir. From New York and New Orleans. MR. MONTENEGRO: I do not wish to bother Mr. Hurley, but there are some South American countries that have their own merchant marine, I know my country does, and I wish to know what welcome will be extended to ships of foreign countries coming to the States. MR. HURLEY: Every ship will be welcome to our ports the same as we expect our ships, with our flags, will be welcome to every other port in the world. That is reciprocity. We particularly welcome the Chilean ships. MR. MONTENEGRO: Th^re vpre some restrictions, I think, for foreign ships in the United States. I mean that the American flag was favored in man} ways. Will there be any difference between the treatment of ships? MR. HURLEY: No, we intend to carry fifty per cent, of our commerce only, our exports, which amounts to forty million tons a year. Our imports are twenty million tons. We expect you to bring your imports in here in your ships, and in balancing our fleet we are not figuring on moving 1(X) per cent of our exports, we are only figuring on moving SO per cent., giving you an opportunity to take a cargo back to Chile. I will say for the benefit of the gentlemen here that are not familiar with the figures, that England has never exported or moved in her bottoms over 57 per cent, of her entire commerce. There will be no discrimination against Chile or any other country. MR. MONTENEGRO: My idea was the difference between the regulations of one countrjr and another, and I wish to know if you will make our crew, or engineers, for instance, to conform to the American regulations when they come to the States? WEDNESDAY MORNING SESSION 45 MR. HURLEY: No, but you must conform to the laws and regulations of every port and carry out our instructions, but with your own people. If your crew deserted here and you wanted to employ our men, you would have to comply with our replations but if a ship comes in here with a full crew, and no one in- terteres with you and you go back home with your own crew, that is all there is to It. MR. C. yOGEL (PhUadelphia) : I would like to ask Mr. Hurley the reason why no vessels are allocated to Philadelphia for the eastern coast of South America. ,u T>^j?u?^^' I *'nk there is a special cargo line going to sail from the Philadelphia port and also from Baltimore. MR. VOGEL: I understood you to say New York and New Orleans. MR. HURLEY: Every principal port in South America will have special service, and that applies to the Pacific, the Atlantic and the Gulf. We are going to try and divide this seventeen or eighteen million tons of shipping that we have equitably throughout the country so that the congestion will be relieved. Mobile, Galveston, etc., have facilities that they can use to much better advantage than they are now using them. I am now working with Philadelphia on that plan. MR. MORRIS B. BOGART (Buenos Aires): Do you believe that in nor- mal times we will be able to maintain freight rates on returning cargoes on the River Plate, particularly on heavy products, from the United States on the same basis as rates from Continental ports. MR. HURLEY: What have you in mind, the wage scale or operation of the fleet? MR. BOGART: Whether we will have equal freight rates on goods from the United States as from European ports to the River Plate. Are we going to be able to buy them from the United States and ship them on an equal basis as far as freight rates are concerned? MR. H,URLEY: First I will say yes, and second if we do not we are out of business and that is what competition is going to develop. We are not fearful of the other fellow and we are not frightened as to what he is going to do to us. If we cannot compete first in freight rates and second in our products, we all know what is going to happen. Tte South American is going to buy not only where he can get the best and cheapest goods, but also at the most favorafele freight rates. The question of the cost of operating the fleet, compared to other nations — we are not fearful of that at all. We can compete with them under the present conditions that exist throughout the world. The wage scale on the different ships outside of Greece and Japan are about the same and in many cases they are higher. When you take into consideration the fact that out of thirty-five million tons of world shipping Greece has four hundred thousand tons and Japan has a million and a half. They pay lower wages to their seamen and their crew, but Norway and Sweden pay more than we do. England pays $72 for a seaman, we pay $75. We have more men on our ships, but taking into consideration the additional crew, the additional men in the crews, it amounts to less than 2 per cent, of the cost of operation and the total cost of operating a ship (that is, as far as wages are concerned) is about 6 per cent, of the total cost of operating a ship. That margin is so small that it is not going to interfere with the freight rates. Other things will have to enter into it and we are going into this thing with the feeling that we are going to compete in the markets of the world fairly and squarely, first with our products and second with our ships, and if we do not go into battle saying we are going to win, you gentlemen know what will happen to us. MAJOR HARRY DAVIS (General Staff, Washington) : I am especially in- terested in the commerce of Colombia and I should like to know whether it is the intention of the Shipping Board to send shipping facilities to the coast of Colombia. MR. HURLEY: We are going to make a stop on the coast of Colombia and on down to Valparaiso the same as we are planning on the East coast. We are going to have sufficient service first to ^ve fast service to the principal ports like Valparaiso and New Orleans and Mobile and New York, Philadelphia and the other ports. In between we are going to run ships that will take turns in making the stops and give first class service to Colombia. We are planning not to neglect 46 SECOND PAN AMERICAN COMMERCIAL CONFERENCE a single country in Latin America. We are just as anxious as you are to have our ships stop and give you real service. ^ MAJOR DAVIS: I am principally interested in the shipping to Barran- quilla. MR. HURLEY: We have it all worked out on the chart showing what the regular service is to be. MR. CRAWFORD (Philadelphia): I would like to ask if any provisions are being made toward the improvement of what might be considered the lesser ports of 'South America. " MR. HURLEY: Yes, it is all included. MR. H. W. HEEGSTRA (Chicago): Is the purpose of this trip to be one purely for information for those who go or will business exploitation be permitted also? MR. HURLEY: You can talk anything you want. We are not going to have any restrictions. DIRECTOR GENERAL BARRETT: We have heard from the Chairman of the United States Shipping Board, expressing the governmental relationship to this problem. Now we are going to have a few brief words from the head of one of the greatest and most interesting ports of the United States, the most interested port of the United States because of its peculiar location in the field of Pan American trade. You have all been impressed with the new life that has come to New Orleans, you have been reading these wonderful advertisements, appearing in the papers. Back of this, as a main spring of this interest and the one who has been eminently constructive in the era of New Orleans is the next speaker. I have great pleasure in introducing to you Honorable Martin Behrman, Mayor of New Orleans. THE MAYOR OF NEW ORLEANS delivered the speech which appears on page 225. DR. ROJO: Mr. Mayor, I want to ask you: New Orleans is one of the ports that has more traffic with Mexican ports, especially with Progreso, of the State of Yucatan. This traffic is principally of hemp (sisal). There have been lately in your port some restrictions against Mexican shipments, of the quarantine; it delays freight and passengers three or four days and this restriction is badly resented both by American and Mexican merchants. I feel it would be wise to request your help in order to remove that quarantine for the mutual benefit of your port and the Mexican ports, as there is no foundation now at all to have this quarantine in existence. \ MAYOR BEHRMAN: It would be well to take up that matter with the United States Public Health Service. DIRECTOR GENERAL BARRETT: Any other questions to ask Mayor Behrman? If not we shall proceed with the program. I am very glad, ladies and' gentlemen, that we could have Dr. Grosvenor M. Jones, Assistant Director of the Bureau of Foreign and Domestic Commerce, here because he is certainly, without any exaggeration or flattery, one of the best qualified, all-around men in that splendidly equipped and manned Bureau of the Department of Commerce. I have great pleasure in introducing him. DR. GROSVENOR M. JONES: After that flattering introduction, I hardly know where to begin, but the Chairman of the Shipping Board, in his address and his answers to the questions from the floor, has so fully covered the subject that 1 was to speak about that I shall confine myself to a very few remarks. The Department of Commerce has a vital interest in shipping. Without ships there can be little or no international trade. Fortunately, due to the splendid efforts of the Shipping Board, we have not had to concern ourselves very much with the development of shipping. That has been a great relief to us and we have been able, therefore, to concentrate our efforts on trade promotion, knowing that as our trade develops ships will be found. (Dr. Jones then read the paper given on page 227.) ~ WEDNESDAY MORNING SESSION 47 MR. W. C. KRETZ (New York City) : I have listened to Mr. Jones' address with a great deal of interest, especially from the point of view of the traveler, and particularly what he said about the inter-island connections because I have traveled around there a great deal and I know it is very hard to get round. But the point that came into my mind was whether Mr. Jones or the Department of Commerce had in mind that the Government would assist the shipping lines in any way to carry out that program. After all, it costs a good deal of money for a steamer or any kind of vessel to make a port. It is perhaps one of the most expensive operations that they can do — to stop and start again. No private shipping line would therefore make a port like St. Thomas from and to which freight could be moved, presumably quite small, without some sort of inducement. If they had enough»passengers or freight it would be worth while, but merely as a matter of convenience it would not. Does the Shipping Board or the Department of Commerce have any idea of assisting the traveling public by helping the shipping lines to make these ports? MR. JONES: That brings up a question of policy. A few years ago I was called upon to prepare some data on this subject for the Government, and the reviewers of my book (when completed) suggested that I was antagonistic to the policy of government aid. I have changed my notions somewhat in the last four years and personally I should favor government aid in the form of mail sub- ventions (not a general subsidy grant) and I think that the Government would get back of such a line with such aid, were it absolutely necessary to the mainte- nance of such a line. DIRECTOR GENERAL BARRETT: We are very fortunate in having the op- portunity of listening to a most practical man on the shipping question, a man who has studied it from A to Z, and is familiar with every phase of it. I have, there- fore, great pleasure in introducing to you that export on Pan American shipping, Mr. George L. Duval, of Wessel, Duval & Co., New York. MR. GEORGE L. DUVAL delivered the address given on page 229. DIRECTOR GENERAL BARRETT: If there are no questions on the very illuminating address delivered by Mr. Duval, I am going to allow Congressman McDuffie of Mobile to express the idea of a resolution he desires to read to the Conference. CONGRESSMAN JOHN McDUFFIE, of Mobile, Alabama: Mr. Chairman: I am very grateful for this opportunity and I will not detain the Conference more than two minutes. In my judgment, the distinguished Mayor of New Orleans has sounded the keynote of commercial relations between this big family. North and South America. The question of an open port, a free port, and I deem it not a mistake, in fact highly important that this great body of representatives should think along that particular line not for the benefit of Mobile, not for the benefit of New Orleans or any other single locality but to stimulate, if you please, the commercial and friendly relations between these nations. This is not a resolution for you to pass on, as the Chairman has explained, but simply contains the thought that I am trying to express — that the establish- ment of the zones where products from all countries can be assembled, classified, manufactured and re-shipped will be of great assistance in developing full cargoes both ways and assure the permanency of our American merchant marine. The American has never yet set his heart on anything that"" he hasn't accomplished it. Whenever he set his heart on the field of battle, he has won ; in the air, he has won. And the American merchajit marine will meet the competition Chairman Hurley spoke of this morning. "Whereas, Congressman J. Y. Sanders has introduced to Congress bill No. H. R. 10892 for the establishment, operation and maintenance of free zones in or adjacent to ports of entry in the Continental United States: "Whereas, The establishment of such zones where products from all coun- tries can be assembled, classified, manufactured and reshipped will be of great assistance in developing full cargoes both ways and assure the permanency of our American Merchant Marine, and Whereas, "Latin American countries are becoming more and more a source of raw material, and as none of these countries have yet developed manufacturing indus- 48 SECOND PAN AMERICAN COMMERCIAL CONFERENCE tries- to handle home consumption, for the lack of capital and other economic reasons, and, whereas : "The establishment of those free zones in the Continental United States will promote the development of the resources of these marvelous countries by turning them into finished products and selling them to the world. "Resolved: That the Second Pan American Commercial Conference recog- nizes the wisdom and the necessity of establishing free zones within the Continental United States and urges that Congress favor the passage of the said bill. "Be It Further Resolved: That a copy of this Resolution be sent to every Senator, Congressman and Representative of the United States." Those things I pray you may think of, my friends, and urge your representa- tive in Congress to advocate that bill which has been introduced by Governor SanderSj now representative from Louisiana, asking Congress to give every port an opportunity to declare itself a free port in the event it sees fit. DIRECTOR GENERAL BARRETT: Now, ladies and gentlemen, when we had the last Pan American Conference eight years ago, if anyone had suggested that one of the prominent features on the program should be aviation as an aid to commerce, they would have said "You are crazy!" But now it is before us in a most practical way. I wish we had more time, a whole session, to devote to the consideration of this subject. I am 'going to call upon the well-known Secretary of. the Aero Qub of America, Mr. Augustus Post, to bring a message from the President of that organization. MR. AUGUSTUS POST read the paper which appears on page 235. DIRECTOR GENERAL BARRETT: We will hold the questions until we have finished the leading speakers. Captain Glidden, I have great pleasure in in- troducing you because you are an old personal friend of mine. I once made a balloon ascent with him several years ago in Massachusetts and I know his real quality. We will be very glad to have a few words from you. CAPTAIN CHARLES J. GLIDDEN read the paper given on page 236. DIRECTOR GENERAL BARRETT: We had asked General Menoher to be here and speak to us. I am sorry he could not have been here himself.. I have now great pleasure in introducing to you one who has made a special study of the relationship of aeronautics to Pan American commerce and I am sure you will be glad to hear from him in a brief statement of what he has in mind. Captain Max L. McCuUough, of the United States Army Air Service. CAPTAIN MAX L. McCULLOUGH delivered the adf THURSDAY AFTERNOON SESSION 71 figures, but from very wide sources it appears that in general, when you take all the expenses of handling the traffic that the cost with water traction very seldom runs below 15 cents a ton mile and that doesn't include the cost of the road, or of the motor truck. It does, however, include the depreciation, cost of maintenance, etc., on the motor trucks. MR. DICKINSON: And the interest on the original investment also? MR. BAKER: Yes, interest also, but not the road expenses. In order to get that you have to take first what it costs to build your road, then the interest on that per annum, then what it costs to maintain it, and then the annual de- preciation, figuring that it will have a certain life and at the end of that time you have to practically rebuild the road. Then when you get that you find what it costs you per annum, total cost per annum per mile for that road and divide that by the tons over that road and you get the charge per ton on it. Adding that to your cost of moving the material itself, the ton mile cost, you get your total ton mile cost in the road. It is in detail on my paper. May I say one more thing? I was very much interested in the paper on the tramway and one point that Mr. Lang brought out is that the tramway does some- thing that in certain conditions we cannot do with anything else. In a very rough, mountainous, broken country the tramway will give access to mountain top or very rough regions which we cannot obtain in any other practical way and in some very mountainous regions like the Andes, for instance, it does contribute a very good prospect for a satisfactory future. MR. PARMELEE (Presiding): In closing this program we are going to con- sider just for a moment the need of standardizing technical terms in the Spanish language. It is a matter which will become more and more important as these countries exchange opinions and ideas, and on that subject Mr. Havens, editor of "Ingenieria Internacional," will speak briefly. MR. HAVENS: Mr. Chairman, Delegates: The Spanish language is one of the comparatively few modern tongues that is controlled almost absolutely in its growth by some one central authority. MR. V. L. HAVENS read the paper given on page 331. MR. PARMELEE (Presiding) : I now take great pleasure in calling upon Dir. Cesar Zumeta, of Venezuela, who will speak on the need of commercial and tech- i:ical nomenclature for Pan America. DR. CfiSAR ZUMETA read the paper given on page 330. CHAIRMAN PARMELEE: Does anyone wish to comment on Mr. Havens' suggestions ? MR. CORONADO (Akron, O.) : I think the idea of the speaker is worthy of consideration because in our experience in making the translations in the rubber business we have found, for instance, that some of the countries in South America call the^ word "tire," "yanta" ; some others call it "goma" and others still call it "pneumatico." In some of the countries where they refer to it by some other name, when we call it "yanta" they don't know what we are talking about. In other countries they call it "goma," a kind of glue or paste. In some of the South American countries the crude rubber is known under the name "caucho" ;• in some others they call that "goma" and in Mexico it is known under the name of "hule." We have three names for each of those two words. We have tried to get some authority from the different translation bureaus located in the United States and practically all of them differed in their opinion about the same word. The only way to solve that problem would be to suggest a word, just as Mr. Havens proposes and use that word universally. I think that some of the manu- facturers will be able to give very good suggestions in this matter. MR. SAMPAIO: I shall take this opportunity of speaking about the use of language between South America and other countries. We know that Brazil is just half of South America. South America today has just sixty-two millions of people ; Brazil has today twenty-seven millions eight hundred people.^- iThese are figures quoted by Senhor Sampaio. According to the latest avail- able official statistics (1917) Brazil's population is 22,992,037. See statistical maps on pp. 28 and 29.— Editor. 72 SECOND PAN AMERICAN COMMERCIAL CONFERENCE I think it is wrong for you to send letters to Brazil in Portuguese ; it is better that you send them in English. Why? For two reasons. Plrst because Brazil has more business with England and with the United States than with all the people who speak Spanish — ^95 per cent with England and with the United States. Busi- ness men in Brazil use more English than Spanish because the South American republics have not business between one another as much as with Europe and the United States. I arrived in St. Louis just seven months ago, and I opened two classes of Portuguese for business men. With the helj) of the St. Louis Chamber of Com- merce (and I represent here also the St. Louis Chamber of Commerce) each busi- ness man, each company, exporter and importer in St. Louis sends to these classes one man from the company. I have forty-three students, all business men. I ask of you to remember that it is better to send letters in good English to Brazil than to send them' in poor Spanish. MR. McHALE: Mr. Havens' suggestion seems to me to be a very good one. I think that Mr. Barrett, with his influence, could do a great deal for the solution of this problem. To try to get the technical terms from Spanish dictionaries is the same as breaking your head against the Chinese wall, particularly from the dic- tionary of the Spanish Academy. Y'ou must not expect to get anything from a dictionary containing about sixty-five thousand words. You can imagine the pos- sibility of finding technical terms in a dictionary of that sort when you compare it with the Standard English Dictionary that has about two hundred thousand words. It is a well known fact that the English language is a far-reaching language. How could the problem be solved? The publication of a dictionary is the only way, and how could the dictionary be compiled? By getting technical men, but not only engineers. In the dictionary ,of the Academy you do not find technical terms. We must not be surprised then that the names of the different articles in the different countries have different names. The same thing happens_ in the English language to a certain extent. Of course, if we go to South America we find that in the different sections the same article has a different name, and it is next to impossible for any man to know all these terms. I- think the Pan American Union could do a very good thing compiling a technical dictionary and I think it would be a financial success because there is a great demand for such a work. There are several dictionaries but they are not complete. Some of them contain commercial terms, others contain engineering terms, others mechanical terms, and it would not be difficult to compile a dictionary containing all the technical terms not found in the. dictionary. I think there is an opportunity for an institution such as the Pan American Union. DIRECTOR GENERAL BARRETT: Gentlemen, I have known Professor Lacalle a great many years. He was for a long time associated with the Pan American Union. I don't think any man in America understands better the ques- tion under discussion than he does. PROFESSOR J. MORENO LACALLE: I want first of all to say that I am in hearty accord with the suggestion offered by Mr. Havens. It is undoubtedly a very practical solution to, the problem. However, I think it is not so much a question of a common technical vocabulary as it is a question of proper and accurate trans- lating. This paper brings indeed a very vital question for American manufac- turers and exporters in their relations with Latin America, inasmuch as they have to depend largely upon direct advertising for creating and maintaining foreign mar- kets for their articles. Heretofore American firms doing business with Spanish countries have been sadly imposed upon by so-called translators who' were not only utterly ignorant of technical terms but, what is worse, did not even know idiomatic Spanish. As a rule these "translators" offered their services at a minimum price, and the exporting firm would accept them for the purpose of saving money, which is poor economy, as I shall presently show, and as bitter experience has demon- strated to not a few business men in this country. Aside from the fact that a poorly translated letter, catalog, or advertising literature produces the contrary result — its fate being usually the wastebasket — there is always the danger of financial loss, which, as in some cases that have come under my observation; may run into the thousands of, dollars. To cite one single instance, I will tell you about the case of ,a house manu- facturing varnishes and paints. They had their labels translated into Spanish by THURSDAY AFTERNOON SESSION 73 some "translator'' who rendered the word "enamel" by the Spanish "esmalte." "Esmalte" means "enamel," it is true, but it means only the enamel used on jewelry and other expensive articles, and as such, "esmalte" pays in most countries a very high rate of duty. Well, through the stupidity of the "translator" and the firm's desire to save some money on the translation, they had already lost some thousands of dollars, when they discovered that their paints were being taxed at the port of import as if they were the real enamel of jewelry. This is only one case of the many that I could point out to you, but it is sufficient, I believe, to emphasize the importance of translations properly, idiomat- ically and accurately done. As for the common technical vocabulary, there met recently in Spain a com- mission of experts in the different branches of engineering for the purpose of uniformizing and enlarging the technical vocabulary of the language. The recom- mendations of this commission have been embodied in a "Technical Dictionary" in seven languages, of which the firm of Bailly-Bailliere are the agents for Madrid and Paris. This work has the great additional advantage of carrying one or more illustrations for each and every word, and is divided into several volumes, one for each branch of engineering. It is the standard work of its kind. MR. McHALE: In corroboration of what Prof. Lacalle says, I myself have had a good deal of experience with translation work. There are so many of these so-called translators here. Perhaps some of you know of the little pamphlet that circulated some time ago in this country, gotten out by a manufacturer of leather goods. They had a small space devoted to harness for a single horse buggy — a buggy is a small sort of coach. That was the title of the pamphlet in English. The manufacturer wanted to have the circular sent to Spanish America so he sent it to a translator who knew as much of Spanish perhaps as I know Chinese, and the result was that the Spanish translation, translated back into English, meant, instead of harness for single horse buggy, "harness for a bachelor horse full of bugs." You can imagine the kind of an opinion that would be formed of American goods after reading such a circular. The translator got his money and the manu- facturer got his lesson. In that point I agree with Professor Lacalle thoroughly. I think that even competent translators do not always find in dictionaries, in the best dictionaries that we have in Spanish the technical terms that they need. Without doubt there is a lack of a good technical dictionary in Spanish. Not long ago a member of the Spanish Academy, Seiior Alemany, published a very good dictionary containing 40,000 words more than the dictionary of the Spanish Academy and 20,000 Spanish Americati terms. It has about 220,000 terms, but even in that dictionary which is far superior to the dictionary of the Academy, there are a great many technical terms that we do not find. In Spain I had about twenty translators working under me. Some of them were Spanish Americans, others were Spaniards, and still others Americans and English, and they could not agree as to the use of technical terms. Papers that have been translated in this country for- us in South America they could not use in Spain, and others that are used in Spain cannot be used in South America. MR. PARMELEE (Prasiding): Mr. Vicente Gonzales, will you contribute to this discussion? MR. GONZALES: I only can confirm what the gentlemen have said. It is a pitiful way in which our^catalogs are translated for the sake of saving a few dollars. I have read, during the time I have been in the Association of Manufac- turers, most inconceivable stupidities that could ever have been written. I knew the case the gentleman spoke of about the bugs as well as many other examples, and manufacturers should be advised very strongly along this line; to apply only to. people who know the language thoroughly. I did no translating in the Association, I did something easier than that — I criticized — and I always found a very vast field for criticism. The trouble lies between the countries — ^that articles have the same names in different terms. I think that manufacturers should be strongly recommended to be very careful in selecting the translator. MR. HAVENS: I might say one word, Mr. Chairman. It was not my idea to criticize the various translations that various people make. My point was based on the very small number of words (perhaps not over five hundred) that are in doubt I mean words that are thoroughly understood, each in its own particular locality and not understood in the other South American or Spanish' speaking 74 SECOND PAN AMERICAN COMMERCIAL CONFERENCE countries, and the probabilities are that some engineers from tjie custom house authorities from each country would be able to get together and make a choice of these four or five hundred words and solve an enormous number of the problems that are put before translators now which compel them to invent a word which will express the meaning when there is no word that he can use. MR. FRANK RHEA (New York) : As to the permissibility of using English to cover technical words, I have had some twelve years of having translated for me other languages—even some English. In Australia they use "eyre" which they put on their locomotive wheels. I have found oijt about the only way I could get around that difference (and I would like to ask the objection to this) is to either , put in brackets the English technical term or put in parallel columns the technical terms. I have had some very good translators and I have never had any better method. Is there objection to that method? MR. SAMPAIO: I would make one suggestion in regard to the question of technical terms in English translation for South America. The Secretary of the Treasury of, my country has written a book containing 5,000 pages which embraces all terms for all problems of importation, with three translations — the name of each technical term in English, in French and in Portuguese. MR. PARMELEE (Presidiftg) : Befor« closing this engineering session I just want to express thanks to those who participated in it aftd I am sure that as for those pf you who have remained, you have been amp|y repaid. .{Announcements by Director General Barrett.) Adjournment. - •' jivening: SESSION,; ■. ,. The Conference was called to order at 8.30 by Diriector General Barrett,-, who -presided. ^ : . , (A*inouncements.) T' ~ DIRECTOR GENERAL BARRETT: In the origirial program we were to have-bad; und«r the head of Commercial Intelligence, on Friday morning, an ad- dress by pfie.of the best authorities on "that topic in America. He could not be he.re tOjiiof rpw because he has a battle tp fight elsewhere and so we arranged the program in order that he might speak to us: tonight, I am going to introduce to you. a man who has been in the forefront of the activities of publication in this country to make the United States loved- and respected and known throughout, the, western hemisphere and the world, a man who has been chief in his great firm largely, I might say chief and directing its policies, a man who is responsible for the organization .and development of "-La Revista del Mundo," which today is becoming as popular in Latin America as World's Work in the United States. I have great pleasure in introducing to you as the first speaker of the evening Herbert S. Houston of Doubleday, Page & Company, New York. MR. HERBERT S. HOUSTON: Mr. ChairmaH, Ladies and Gentlemen: A few minutes ago as I was standing downstairs looking over that beautiful gar- den, a friend of mine said, "What a pity that these wonderful addresses should reach only the comparatively few people who are foregathered here." Well, more peOpk are going to ha-se the privilege of hearing them because the press of Pan America^ as a- torch of progress, will bear these messages, these - creative ideas that have been presented here during this memorable congress throughoilt both North and Soiith Attrerica. (Mr. Houston then read the address given on page 346.) MR. McHALE: Should that be limited only to exporting houses? MR. HOUSTON: I do not think our friend probably realizes that for ten. years we have beeii carrying on a tremendous wort in rega,rd to people who' publish dishonest advertisiiig at home. For example, we put honest advertising on the statute books of thirty-five states. We have get-rich-quick crooks, who have THURSDAY EVENING SESSION 75 operated throughout the country, a number of them, under indictment. We have been doing this work for ten or twelve years at home and now we are extending it to other parts of the world. MR. McHALE: I have seen some advertisements in South American papers not of American exporters but of sellers of small drugs or things of that kind. For instance, in several papers in South America some time ago there was one about red noses, "Send a dollar and we shall change the color of your nose," and many silly people were duped by the advertisement, sent in their dollar and got back a letter saying, "Keep on drinking and the nose will turn purple." The question is that these measures I think should not be limited to exporting houses but to all dishonest advertisements. MR. HOUSTON: That is all right but we will take one continent at a time and we will start with our own exporters in the United States because we have the machinery in the Associated Advertising Clubs to effectively commission it. We believe a demonstation made here will be the means of organizing a similar movement to take care of advertising in South America where men may be doing things that our North American advertisers have been known to do. DIRECTOR GENERAL BARRETT: The other day when we were discus- sing Venezuela we had a wonderful paper read by the special representative of that country, but tonight we are going to have a brief word from the man who in New York is largely in charge of the commercial relations of Venezuela and the United States — a man who is recognized alike in Venezuela and in this country as eminently qualified for his position and his work. I have great pleasure in introducing to you Senor Pedro Rafael Rincones, Consul General of Venezuela at New York. SE5fOR PEDRO RAFAEL RINCONES read the paper given on page 213. DIRECTOR GENERAL BARRETT: The other day when we were considering trade methods, one of the most important features under that head was packing. We are fortunate in having here tonight the greatest living authority in this country on packing, a man who distinguished himself in the period of the war in revolutionizing the methods of packing the shipments of products across the seas. This gentleman was unable to speak when we had that subject under con- sideration but it is so important that I am going to give him a few minutes to speak to us now. I refer to Captain H. R. Moody, packing expert of the United States Army. CAPTAIN H. R. MOODY: 'Mr. Chairinan, Ladies and Gentlemen: The story that I have to bring to you has relation to the packing, the methods of making, the methods of trying the package after it is complete so that it may go to the customer in good shape. (Captain Moody then read the paper which appears on page 252.) DIRECTOR GENERAL BARRETT: Has anyone a question following that instructive paper by Captain Moody? DR. W. C. KRETZ (New York) : I should like to ask a question relating to costs of packing. Being more or less in that line myself I know that almost anything can be packed so that it will go to the North Pole or anywhere else provided you put enough money into the packing. It is a matter of design of the package and cost of the package. Now, if you have a $10 article, is it worth putting $5 into the packing? A great many customers will not stand the expense of the package. In other words, I have seen a number of times things shipped in expensive packages and the customer charged so much for the goods and so much for the package that customer has refused to pay for package. What will the manufacturer do? He must use his judgment as to what he can afford to put into that package as practically an insurance on it that it will get there with a reasonable assurance of safety. Sometimes it does, sometimes it does not. That is the specific question, and in doing government work, hasn't there been a greater amount of expense allowed for making these packages than the ordinary customer would be willing to pay? 76 SECOND PAN AMERICAN COMMERCIAL CONFERENCE 1 CAPTAIN MOODY: We do not recommend economical packing, we recom- mend safe packing. We figure that if the package is worth $10 it is better to put fifty cents or a dollar on the packing and deliver $10 worth than save fifty ^ents and spoil what is in the package: . MRS. LYDIA ADAMS-WILLIAMS (Washington) : I would like to ask Captain Moody if in his packing experiments he has investigated the work done by the wood packing industry of the Madison Laboratory of the Forest Service. As I understand it, tfiey went very extensively into the subject of packing and designed .boxes which would hold the maximum amount with the minimum amount of wastage, and I would like to know if Captain Moody has made any investiga- tion of the work of the Madison Laboratory at Madison, Wisconsin. CAPTAIN MOODY: We worked in close co-operation with all of them through our experiments here in Washington. We sent samples to the Madison Laboratories and they made the experiment for us whenever we were in doubt as to any wood or package or other detail. DIRECTOR GENERAL BARRETT: I have great pleasure in introducing to you Mr. Frederick L. Hoffman, Vice-President and Statistician of the Prudential Insurance Company. MR. FREDERICK L. HOFFMAN read the paper given on page 342. DIRECTOR GENERAL BARRETT: I am going to have real pleasure in introducing a man who has the real Pan American viewpoint. I have already em- phasized the fact that the great characteristic of this Conference is its Pan American viewpoint, the viewpoint of Latin America and the United States alike. We have now to speak to us a man who knows the United States, who knows Latin America. I refer to Mr. Leon Bensabat of American Chamber of Commerce at Rio de Janeiro, Brazil. MR. LEON BENSABAT read the paper given on page 122. DIRECTOR GENERAL BARRETT: We are fortunate in having with us tonight a great Pan Americanist whose well-known name was on the Program for tomorrow. As he can not stay over until then, we shall have the pleasure of hearing him now — Dr. Peter H. Goldsmith of the American Association for Inter- national Conciliation. DR. PETER H. GOLDSMITH: Mr. Chairman, Ladies and Gentlemen: As I came from New Yxjrk on Tuesday, the lines of an old and a very familiar poetic phrase were running through my mind — "hope springs eternal in the human breast." I think the most of us when we make our plans to attend an international con- ference, whether it be American or otherwise, approach the occasion with hope. We expect that the golden word may be spoken, that there may be uttered some phrase, that there may be set forth some plan, that there may be proposed some system that will solve the difficulties and will unite the peoples. After we have attended one of these Conferences, I think we are disposed to have largely in our minds another phrase — "hope deferred maketh the heart sick." Because the golden word is never uttered, the absolutely applicable system is never proposed. I say this not in a spirit of criticism. This Conference, like all others, has given what conferences are capable of giving. But a conference cannot solve the difficulties, cannot bridge over the chasms, or work out all the problems. The great task is the task that exists between conferences, the work that must go on, the work that is going on, the work that must continue to be done between the times when we meet to talk. As a sort of inter-American interpreter, a wandering interpreter who goes up and down throughout the American hemisphere, trying to make people known to each other and seeking to help them tear down the barriers that separate them, I wish to make two suggestions. The first is that every American here, using that word in its fine, large significance so as to make it include all that belongs to the western world — that every American here shall constitute himself into a committee of one for the sup- pression and elimination of fools, cismatics and superficial writers who endanger relations between nations by their foolish utterances. I went into a store in New THURSDAY EVENING SESSION 77 York the other day and the book dealer handed me two volumes and said, "Have you seen these?" One of them was "To Hell and Back, My Trip to South America." The other was a book by the same author, "The Rotten Republics of Central America." I hope that my friends from the other countries will not be offended. I can balance those by works by Vargas Vila and Manuel Ugarte. , I am making the collection. I never fail to collect anything that speaks ill of the United States, There is much ill to be said of the United States, but let the ill not be spoken without discrimination; let the time come when we shall by our expression of criticism, our censure by our disapproval, make it impossible for any publisher to put out such folly. If the creatures who live in countries were not human beings, if they were not influenced by what people say about them, it would not be so serious, but it seems to me that the time has come when the truth, the truth with understanding, the truth tempered by good will, the penetrating truth that not only states the fact but also points to the road by which the fact has come into being, The time has come, I repeat, when only that shall be uttered in our hemisphere because the world needs a united America. My other suggestion is this: The future safety and happiness of the world, I believe, is largely dependent upon what we do in America during the next score of years. Let us unite our countries more closely materially. Now surely is the time to push the thought of the Pan American Railway. iJet the countries be so united that there will always be intercourse between them in spite of the war vessel, in spite of the submarine, that there can be no way of cutting the com- munication; and that along that great iron artery will be developed a civilization from the North to the South, a civilization that will be more marvelous in actual cold fact than the most heated imagination can conceive of at this moment. DIRECTOR GENERAL BARRETT: I have a telegram to read from the Governor of New Mexico. It has been sent to the Conference through Dr. John- son, the Representative of that state in this Conference: "I send greetings to the delegates of the Pan American Commercial Con- ference now in session at Washington. May the spirit of a common brotherhood inspire your acts and bring together all the nations of America in united and harmonious cooperation for their common and individual happiness and pros- perity and for the guidance of the world in securing the blessings of popular free government throughout the earth." ( Announcements. ) (Motion pictures.) Adjournment. 78 SECOND PAN AMERICAN COMMERCIAL CONFERENCE FRIDAY, JUNE 6, 1919 MORNING SESSION The Conference was called to order at 10 o'clock by Director General Barrett., (Announcements.) DIRECTOR GENERAL BARRETT: 1 am going to ask Mr. Noel, the Secre- tary for the Conference, to preside this morning for the remainder of the session after I have introduced the opening speaker. If there are any persons whose names are upon the program, who for one reason or another have not yet had an opportunity, I would like to have them report. It has been unavoidable to leave off some, and tjien others who were not here then are present now. It is a real pleasure and an honor to introduce the first speaker of this morning. He is a man not only of national — and I might say world "reputa'tion, because of his individual work and of the position he occupies — but also one of those men whom we all love and admire as a friend and one of the representative public-spirited citizens of the District of Columbia. This' morning we are consider- ing the relationship of the newspapers and the magazines, and other methods of publication, to the upbuilding of Pan American commerce. I can think of no more fitting way of starting this discussion than that we should have, as the opening address, one by Mr. F. B. Noyes, the President of the Associated Press. MR. F. B. NOYES read the paper given on page 34S. MR. NOEL (Presiding): On account of the urgency of his return to New York, I am going to call on the representative in New York of La Nacion of Buenos Aires, to speak to us about some of the technical features of the develop- ment of the service here. Mr. Davies has been a very splendid worker in organiz- ing the service of his paper, which is a splendid, conservative and yet pi-ogressive organ of opinion in the Argentine Republic. I take pleasure in introducing Mr. W. W. Davies. MR. W. W. DAVIES delivered the remarks given on page 350. MR. NOEL (Presiding): While we are familiar through the reading of the daily papers with news associations and organizations of that character which have become household words, many of us do not know or realize, perhaps, the in- fluence in the business world of what are known as business papers, trade papers so-called— there is a distinction and. understanding in words — which quietly and effectively through their many publications mould opinion, guide the business men and help them in the organization of their work. We are fortunate in having with us today Mr. A. C. Pearson, the Presi- dent of the Associated Business Papers, a well known and powerful organization for good. I take pleasure in introducing Mr. Pearson. MR. A. C. PEARSON read the paper given on page 3S1. MR. NOEL (Presiding): Returning to the subject of news, reference has already been made by one of the speakers to the man upon whom I am now going to call. Some fifty years ago a tall, powerful, aquiline-nosed man came from thd Civil War, went to rest in the Adirondacks and through some association of ideas, it occurred to him that we must have better communication with Pan American countries. He jumped on a steamer and went to Cuba. He went to Spain later and developed a cable service, from that main idea, all through Latin-America. I refer to a man who is known by many of you here perhaps, the founder, the FRIDAY MORNING SESSION 79 organizer, the moving spirit of the great Central and South American Cable Com- pany, now known as the All Americas Cable — ^James A. Skrimser. Mr. Skrimser was a genius. We owe him a great deal. Today his footsteps are being worthily followed indeed by Mr. Merrill and we have an example in this very building of the close connection with Latin America through this wonderful service. They have been very tenacious and persistent in getting into Latin America and have given a good service, and it is only within recent years that they have been able to get into Brazil, culminating therefore, their ambitions. I take great pleasure in introducing to you Mr, John L. Merrill, the President of the All Americas Cable Company. MR. JOHN L. MERRILL read the paper given on page 353. MR. NOEL (Presiding) : The graveyard of newspapers that have died a natural, forced death, particularly those established for the purpose of creating a demand among the Latin Americans in this country, is full of wrecks. It took indeed a great deal of courage on the part of the man whom I am going to in- troduce to you now to establish a Spanish weekly in the city of New York. Aftdr heroic struggles, he has finally won out and a year ago his paper became a daily. It was during the sessions of this Conference, two days ago, that he celebrated the first anniversary of his Spanish daily. I want you to meet and hear a few words from Mr. Alfredo dvH. CoUao, Publisher of La Prensa of New York. SESOR ALFREDO dvH. COLLAO read the paper which appears on page 35S. MR. NOEL (Presiding): I am very sorry that Mr. Wing B. Allen, the editor of The South American and of El Norte Americano, could not remain as he would have told us some very interesting experiences about developing the two splendid papers which he started a few years ago with practically no support and which have become a great newspaper institution in relation to Latin America. If there are any questions on the subject at hand, Mr. A. C. Rivas, Acting. Editor of the Spanish Bulletin, and Mr. C. E, Albes, Acting Editor of the English Bulletin, of the Fan American Union,, will be here to answer them. Before that, I am going to call upon Mr. Robert S. Barrett of the Bureau of Foreign and Domestic Commerce, who has made an intensive study of Latin American news and advertising, whose writings on the subject are well known and who has gained some very practical experience. He will give us facts and in- stances that will be illuminating on this subject. Mr. Barrett. MR. ROBERT S. BARRETT delivered the' remarks given on page 95. MR. NOEL (Presiding) : Are there any questions ? Mr. Ktetz, you want to ask a question in relation to the subject at hand. DR. KRETZ: It is not exactly a question. The subject that I Jvish to speak about is germane to the matter in hand in this way, tbat the press which is so strongly represented . here is an educational medium and what I want to speak about is something that should be brought to the attention of the Lastin Americans specifically through a medium of that sort, because it is a question of chang;ing persistent opinion into one which I think will redound to the benefit of both parties. (Dr. Kretz then read the paper given on page 2S9.) MR. NOEL (Presiding): Before closing, the Chairman might take ad- vantage of his position since his name is on the program, to speak. I wish to be put on record as emphasizing the importance to the business men of this country of securing the services of technically equipped men, and there are such, for their advertising and publicity campaigns in Latin America, so closely related to the merchandising problems and which must be earnestly solved, studied and planned, just as they are in this country, before success can be obtained. COLOMBIA F0REIGX COMMERCE 1917 TOTALf * 63,865, 000. ■PA/r AM£^/C^// C^MWM FRIDAY AFTERNOON SESSION 81 It has been my personal experience as a publisher in this country and in Latin America that there is great negligence in that direction and that they are inclined either to take the advice of men in the United States claiming to have a knowledge which they have not, or of Latin Americans who come to this coun- try with only a superficial knowledge of the science and technique of advertising. Fortunately for us nowadays, organizations are being created daily where it has been harmonized and whereby the combination of brains and the blending of the two experiences enable them to give technical advice and assistance to the business men and business organizations to plan their campaigns fitting each zone of Latin America. It must be remembered — and it is almost bromidic to state it — that what is good for the East coast is not good for the West coast or the tropical zone and that Latin America, as an advertising problem, must not be treated as a unit but subdivided, not according to its geography, but according to established and well known channels of trade and zones of channels of distribution. That is a point that I wish to emphasize. We are now about to close the subject of this morning's session and before calling upon the next speaker, I would like to know if there are any questions to be asked. I will now relinquish the gavel to Director General Barrett. (Announcements by Director General Barrett.) Adjournment. AFTERNOON— CLOSING SESSION The Conference was called to order at 2.30 o'clock by Director General Barrett. ( Announcements. ) DIRECTOR GENERAL BARRETT: I have real pleasure in introducing the first speaker. I know of no man in all my acquaintance, whether he be blood relative or not, for whom I have more profound esteem personally, for whom I have a deeper friendship amounting almost to love, than for him. He and I have been more intimately associated for thirteen years than almost any other two men in the world, I might say, and there has never been one unpleasant word between us — not one, in thirteen years! Largely due to his temperament and character, and not to mine. M'ore than that, he is a great scholar, with a very broad and intimate knowledge of both the North American and Latin American viewpoint. If the Pari American Union has achieved great results under the administration that now conducts it, the credit is as much due to him as to me. So I have great pleasure in introducing as the first speaker under the general topic of Educational and Social Auxiliaries to Commerce, Seiior Francisco J. Yanes, Assistant Director of the Pan American Union. SESOR FRANCISCO J. YANES read the paper given on page 368. DIRECTOR GENERAL BARRETT: Would anyone like to ask a question of Mr. Yanes before we proceed to the next speaker? SESOR M. BADILLO (Mexico City) : Mr. Yanes, how many Latin Ameri- can students are there in the United States? SEflOR YANES: About five thousand, as far as we have been able to find out. CAPT. DALRYMPLE: I am not going to ask a question. I should like to convey a message from Father Walsh, Regent of the Foreign Service School, Georgetown University. He is unable to come, and in his name I extend an invita- tion to all the delegates and representatives of Latin American countries to have 82 SECOND PAN AMERICAN COMMERCIAL CONFERENCE them correspond with the University about the work that it is doing along this line, and especially with a view to interchange of students and professors. MR. C. E. WILSON: It may be of interest to know that a new kind of Spanish teaching is being developed with us, the Spanish having taken the place of German. We had a very large German Department, but the war reduced it to five, all the students taking Spanish instead, and we are adopting a new kind of Spanish. Instead of reading all classical literature, we are requiring aH the students to subscribe for a good Spanish magazine and Spanish newspaper and read the newspaper and magazine. Of course the news is selected by librarians. DIRECTOR GENERAL BARRETT: Now we come to a very important part of the program, a continuance 'of this important program, I might, say, and I am going to change the order of the speakers a little. Instead of calling first on Dr. McClintock, I am going to call on Dr. MacElwee because of the sequence of their papers. Dr. MacElwee, Second Assistant Director of the Bureau of Foreign and Domestic Commerce. DR. ROY S. MacELWEE read the paper given on page 370. DIRECTOR GENERAL BARRETT: Now we will hear from the Federal Agent for Education for jForeign Trade and Shipping, of the Federal Board for Vocational Education, who succeeded Dr. MacElwee, the first incumbent. of that office. He brings to his work a large fund of knowledge and experience, both as a business man, American consul and a former member of the faculty at Chicago. University — Dr. McClintock._ DR. SAMUEL McCLINTOCK read the paper given on page 374. DIRECTOR GENERAL BARRETT: I now have great pleasure in introduc- ing Dr. Wi E. Dun, Assistant Chief of the Latin American Division of the Bureau of Foreign and Domestic Commerce. DR. W. E. DUN delivered the remarks which appear on page 376. ' DIRECTOR GENERAL BARRETT: We have just had word from Mr. Polk, Secretary of State, that the State Department is so gratified with the suc- cess of this Conference that they are going to send one of their men down to God speed ^us at the close— a very cheering message. We shall now have the pleasure of hearing one of the best known, thorough-, going Pan Americanists in this country. He was for a long time the Minister oft Nicaragua in Washington, was a member of my governing board and I learned' there his fine quality and his ability. He is now in business in New York City and is a delegate to this Conference it is a great pleasure to have him speak to us. Dr. Luis F. Corea. DR. LUIS F. COREA: Mr. Chairman, Ladies and Gentlemen: I appreciate extremely; and wish to express my thanks to Director Barrett for the eulogistic, and kind words that he has expressed about me in his introduction. Being not -only conversant, but also in thorough accord v^ith his work since the second Pan American Conference in Mexico, I would desire to say many things in regard to his untiring energy, his zeal and other pertinent matters in relation to his endeavors, • but as my dear friend Doctor Yanes has previously remarked, "I should hate to think we have established a mutual admiration society.'* It is true, I had the honor of being a member of the Governing Board of The Pan American Union for twelve years. During that time I learnt to appre- ciate their constant work and the great labor which they have so successfully carried out. At the same time I learnt to realize the enormous quantity and minuteness of details which the Executive. Heads and the Staff of the Pan American Union have had to act upon and give their closest attention, ^ and it is owing to their untiring and ceaseless efforts that we have today this great powerful organization, that reaches and influences the political, as well as the cominercial policies of the dentral and South Americas and further largely governs the attitude and relations of other Nations. FRIDAY AFTERNOON SESSION 83 This Conference in itself has been an undertaking involving a serious amount of labor and detail; but they and we are satisfied with the results obtained. Although as the eminent Doctor Goldsmith has said, "We have not heard yet the golden word expected, nor have the serious problems been solved," yet we have accumulated a great mass of sound and reliable information that our intellects will adjust and properly classify in the near future. We have received most interesting suggestions, opinions of far reaching importance, which we all, as Pan Americanists, can work upon as a basis, and in the near future sever the Gordian Knot and find the key of our unsolved problems. It is for this reason that I move that a vote of thanks be extended by the members of this Conference, first, to the Governing Board of the Pan American Union; second, to the Sub-Committee in charge of arrangements, and third to the Director General, the Assistant Director, and to all those who have so efficiently cooperated in this brilliant undertaking, for their splendid public initiative in successfully organizing \his notable Conference, which marks another milestone of progress on the road to practical Pan Americanism. (The motion was seconded by Mr. George H. Kretz, Vice-President, The National Park, New York, and Mr. Gonzalo O'Neill, Manager, Johnson and Johnson, New Brunswick, N. J., and unanimously carried.) DIRECTOR GENERAL BARRETT: On behalf of the Governing Board, of the Assistant Director and of the others, as well as my own, I sincerely thank all for this expression of their interest and good will. CAPTAIN McLEOD (California) : With reference to the study of languages, I should like to know what would be the best way to acquire a commercial vocabulary in the foreign language in the case of mature men who, like myself, have had wide political, commercial and other experience and who are already familiar with the written and spoken language. DR. MacELWEE: I am very glad that question is asked because it is one that comes up quite often. In outlining that twenty years stretch, I was con- sidering men getting in anywhere along the line and catching up and passing those who have gotten in earlier and had to grow. This comes up quite often, and what we do is that we have reading courses outlined, with references, and a mimeographed list of readings which anyone can secure and read to inform him- self upon those topics with which he is not familiar. I am sure there is a large class of men such as the Captain ■ mentions and we have had inquiries both at the Federal Board for Vocational Education and at the Bureau of Foreign and Domestic Commerce. DIRECTOR GENERAL BARRETT: I am going to call now on Miss C. E. Mason who is one of a group of women who today in this new feminine era is taking a profound interest in Pan American affairs. She is a leader in the move- ment of the organization and development of the Pan American Round Table, originally started by Mrs. Florence Griswold of San Antonio, Texas. I will ask Miss Mason to tell us something of the Pan American Round Table. MISS C. E. MASON (Tarrytown, N. Y.) : It is only fair to take part of the three minutes to express to Mr. Barrett and his associates the congratulations of the Pan American Round Table Directorate on this superb meeting which their efforts have called forth. The organization which I have the honor to represent has three objects (1) to promote acquaintance among women of the American countries; (2) to develop and conserve mutual knowledge, understanding and true friendship among the women of the American countries, and (3) to promote all good movements which shall lead to a higher civilization, especially those which affect the welfare of the women and children of the American countries. Since the war, there has been burning in the minds and hearts of American women, I feel sure all over this hemisphere, a desire that we should work together to preserve that great spiritual and intellectual inheritance we have received from the past. Therefore we have organized and we work along these lines : Study of the languages, history and literature and social ideals of the American Repub- lics; opening of club homes for women; offering of prizes to students for essays on Pan American subjects; encouraging the exchange of professors; formation of 84 SECOND PAN AMERICAN COMMERCIAL CONFERENCE travel committees in each republic, to interest parties of citizens and students to travel in the other republics. Then again here is an instance of what v\re wish to do: A few years ago a great genius came from one of the South American countries to New York with an opera. He was a stranger, he was not wealthy, he stayed as long as he could, trying to get someone to listen to his opera. He got one great man to hear it, who pronounced it a wonderful creation and gave him every personal encourage- ment, but did not have the influence to bring it to the attention of the proper musicians. Now, if a man came today and appeared before our committee, we would hear his opera, and we would have the ability to get him a real hearing with a view to producing his opera in the United States. Then we wish to have eventually an organ of communication among the women of the different republics. Our meetings have been held in New York and they have been characterized by a most wonderful cooperative spirit modeled upon that of the Pan American Union. DIRECTOR GENERAL BARRETT: I am going to call upon a woman of great ability and achievement, a woman who has been doing, and is doing con- structive work, Mrs. Glen L. Swiggett, the Secretary of the Women's Auxiliary Committee of the Pan American Scientific Conference, the committee of which Mrs. Lansing is Chairman. I will be very grateful to her if she will tell us about her committee and their work. MRS. GLEN L. SWIGGETT: At the time the Second Scientific Congress met, with the consent and under the auspices of the Organizing Committee of that Conference, there was established a Women's Auxiliary Committee. Its meetings were of an informal nature only, consequently no official action was taken. It did pass two resolutions, that we think were important. One was that we should publish a report, to save whatever germ of worth it may have; the other was that there should be appointed an international committee for Pan America so that there would be a small group in each country that would know about the purpose and the aim and the success of the first Conference and would be ready, as a means, any time when a larger organization was proposed, to take hold as an organizing committee. The report was published very soon after the Conference in the summer of 1916. Since that time the Committee, with Mrs. Robert Lansing as Chairman, was continued as a committee to organize the international committee. That organiza- tion is still in existence, it is a slow process, but I am glad to say that at the present time we have fifty-four members on the international committee for Pan- America. All countries are represented but two, and now the Women's Auxiliary Committee, which is the organizing committee, is working on the completion of the International Committee for Pan America. When that committee is completed it will take up the future work. DIRECTOR GENERAL BARRETT: I am going to ask Mr. Noel to again take the chair for a moment, while I absent myself briefly. He will then read a message from a former President of Peru and one of the most distinguished men of his country. Before leaving the platform for a moment, I want to say that he will be followed for a very brief statement of three or four minutes by a man that I feel belongs to the Pan American Union, who for many years was one of the most efficient and valued members of our staff, now Assistant Professor of Spanish in the U. S. Naval Academy and helping us here as Recording Secretary of this Conference — Prof. J. Moreno-Lacalle. MR. NOEL (Presiding) : Senor Leguia is one of the great constructive- statesmen of South America. He was for a period President of Peru and during the war he has been a great friend of the Allies and he has always been strongly interested in the United States, has sent many young men to this country to study, and during his administration he gave ample opportunity for American experts in that country to help in its development in education, irrigation, railways, agri- FRIDAY AFTERNOON SESSION 85 culture, and in many other ways. It is practically certain that he has been elected again President of Peru. He was in this country some months ago and was very cordially received. In a personal message to me, when I notified him of the success of this Congress over the direct cable wire which we have in this building, he replied and stated : "I rejoice over the splendid success of the Pan American Commer- cial Conference. It will be more than useful to bring American enter- prising spirit and capital into closer touch with Peru, where we are long- ing for both." Professor Moreno-Lacalle, already introduced to you by our Director Gen- eral, will now honor us with a few words. PROFESSOR J. MORENO-LACALLE delivered the remarks which appear on page 377. DIRECTOR GENERAL BARRETT: The Acting Secretary of State has tele- phoned me that Mr. Breckenridge Long, Third Assistant Secretary of State, will be here shortly to represent him. I am now going to give the floor to Dr. Johnson of New Mexico, who has a word to say to the Conference. DR. S. M. JOHNSON read the paper given on page 335. DIRECTOR GENERAL BARRETT: We feel very much honored that the Acting Secretary of State, Honorable Frank L. Polk, who is prevented from being here, has sent a most worthy representative, a man who not only occupies a high position as an Assistant Secretary of State, but who is also one of the most eminent and progressive younger statesmen of the great State of Missouri, one who ever since he has held his position in the State Department has been thoroughly in sympathy with the Pan American movement. I have great pleasure in introducing to you the Honorable Breckenridge Long, Third Assistant Seretary of State. THIRD ASSISTANT SECRETARY OF STATE: Mr. Chairman, Ladies and Gentlemen: It is a great pleasure to be here as the representative of the Acting Secretary of State, to express very briefly something of the gratification whicli the Government of the United States feels at not only the meeting which has been held here but also at the success of the Conference. The Government is very anxious to aid in every way efforts at cooperation and coordination between the Governments and the peoples of these two hemispheres. I came at this late hour in your meeting, not to take additional time but to congratulate those who have organized and carried out the work, and those who have participated in the Con- ference, upon what we understand to have been one of the most successful, if not the most successful meeting of its kind which has been held in the Americas, and to say that in the future, the _ Government of the United States stands and will always stand ready as it has in the past to do whatever it can to felicitate and expedite meetings of this nature. I express, in the absence of the Acting Secretary, and because of his inability to be here, his gratification and his congratulations to you and to the officers of your Conference. DIRECTOR GENERAL BARRETT: Before presenting the very brief sum- mary which I shall make, which will only take a few minutes, I want to ask a man who was formerly the Secretary of the Pan American Society and is now the Secretary of the Argentine American Chamber of Commerce, who has been assisting us in this Conference, to say just a word — Mr. Bard. DR. H. E. BARD read the paper given on page 378. DIRECTOR GENERAL BARRETT: Mr. Secretary, Ladies and Gentlemen: The Second Pan American Commercial Conference adjourns today after the most 86 SECOND PAN AMERICAN COMMERCIAL CONFERENCE successful series of meetings of their kind ever held under the auspices of the Pan American Union. Delegates to the number of 1181, representing the official, unofficial, commercial and business life of all the American republics, have been in actual attendance. The Conference has tmdoubtedly inaugurated a new epoch in Pan American commercial relations. Its one great outstanding characteristic has been 'the expres- sion of the Pan American, or All American, idea and viewpoint. The interests of each country of Latin America, just as much as those of the United States, have been frankly presented and discussed by the most eminent and skilled authori- ties of both North and South America. Never before has any international com- mercial conference in the United States been so comprehensive in topics discussed and so fair to all the countries pai^ticipating. Review of the Work of the Conference If the work and results of the Conference can be unofficially summarized in the form of expressing the sentiments of the majority of those in attendance, as judged by 'their addresses and comments, the following conclusions should be cited : ' 1. The early establishment of ample freight, mail, and passenger steamship facilities between the principal ports of the Atlantic, Gulf, and Pacific ports of the United States and the corresponding ports of Tlatin America. 2. Thorough reciprocity and mutual cooperation in trading methods and regulations, in business ethics, and in general treatment of commercial relations, including export and import combinations, and other governmental aids to com- merce. 3. The meeting by the financial annd business interests of the United States of the financial needs of Latin American Governments and private undertakings. 4. Safeguarding of patents, trademarks, and copyrights of each country in all the other twenty countries through the present International Bureau at Havana and the early opejiing of one in Rio de Janeiro. 5. Making the parcel post_ beneficial alike to the exporters of the United States and the consumers of Latin America through the removal of unnecessary restrictions and regulations. 6. Improvement in the administration of consular offices; developing similarity of consular invoices and fees; annulling of petty laws and regulations annoying to trade and travel; the revising and permanancy of tariffs; better con- ditions of insurance and packing. 7. Extensive railway and highzvay construction all over Latin America; the renewing of railways already in existence but suffering from lack of supplies due to war conditions ; the establishment, as soon as feasible, of fast aviation mail, express and passenger service; and the building immediately of a chain of good hotels in the principal Latin American ports and capitals. 8. Better credit facilities for Latin American buyers by United States ex- porters ; the extension of United States hanking connections ; and more intimate study of actual Latin American trade and social conditions by the export, import, and financial interests of the United States. 9. Study of the Spanish and Portuguese languages, Latin American insti- tutions, history and geography by the people of the United States and a corres- ponding study of the United States by the people of Latin America; general vocational training for Pan American trade. 10. The further improvement and extension of news and cable service; the employment of the best methods in newspaper and magazine advertising, catalogues, business films, and other agencies of commercial publicity and intelli- gence. 11. Holding of the Second Pan American Financial Conference at Wash- ington, in January, 1920, caljed by invitation of the Secretary of the Treasury of the United States and attended by the Latin American Ministers of Finance and their associates. FRIDAY AFTERNOON SESSION 87 12. Important far-reaching announcements, affecting Pan American rela- tions, including (a) that of Secretary of Commerce W. C. Redfield, pointing out new methods and opportunities for increasing the exchange of products between the United States and Latin America; (b) that of Chairman E. N. Hurley of the United States Shipping Board, outlining new passenger, mail and freight steam- ship service; (c) that of Assistant Secretary L. S. Rowe of the Treasury regard- ing the Second Pan American Financial Conference in January, 1920; (d) that of President Charles M. Schwab of the Bethlehem Steel Company, stating his abso- lute confidence in the business possibilities and integrity pf the Latin American Republics ; (e) that of President Frank A. Vanderlip of the National City Bank of New York, that the American republics could and should avert impending industrial catastrophe in Europe by supplying raw materials necessary for European .ndustries; (f) those of Latin American ambassadors, ministers, and delegates, including Seiior Beltran Mathieu, Ambassador of Chile, Senor Francisco Tudela y Varela, Ambassador of Peru ; Senor Ignacio Calderon, Minister of Bolivia, and others, sincerely welcoming closer commercial and financial relations with the United States. It is now with the greatest pleasure, with sincerity, that I express my thanks to all those who have helped to make this Conference a success. I want to thank the Governing Board* for the confidence they have placed in me for carrying out their plans and mine for this Conference, by "backing it arid making it their Con- ference. I want to thank them for their participation, which was so notable on the days that were assigtied to them, the first and second days.-and for their sug- gestions. I am not going to try to mention individually the members of the staff of the Pan American Union, but, Mr. Secretary Long, there is nothing that has pleased me more than the loyalty that has been shown by my staff during the trying period of preparation for this Conference and during the holding of it. Every one, from the able Assistant Director of the Pan American Union, down to the man working to clean the building or the grounds, has had a desire to put this Conference over. They have been working faithfully at all hours, day and night. I cannot mention names in detail, but I would say, of course, that the wise counsel of my Assistant Director has been with me every moment, and also that of the Acting Chief Clerk, Mr. W.. A. Reid. Then in our temporary staff of the Conference, Mr. John Vavasour Noel, who has acted as General Secretary, Mr. Henry L. Sweinhart, who has had charge of publicity. Professor Julian Moreno- Lacalle, who has acted as Recording Secretary, Dr. H. E. Bard, and Seiior Jose Romero who have also acted as assistants, and the other members of their staff, not forgetting the lady here who has so faithfully done her part. Miss Gladys Russell. I want to spesjk with the utmost sincerity — and this is not a conventionality at all — of the practical cooperation that the newspapermen and the newspapers themselves have given us. I think we too often forget their part in these great gatherings. I thank you, gentlemen, with all my heart. I appreciate your con- stant attendance here when you might be doing somethting else more interesting, and it has been a great help to us that you have been here and aided us as you have, and we ask you to convey our thanks to your editors. I thank the All Americas Cable for installing the special direct cable service to Latin America, which has been a great help, and over which the messages from the Presidents of Latin. America have come and the acknowledgements have been sent. I thank the officials of the State Department, especially the Foreign Trade Section, and those of the Bureau of Foreign and Domestic Commerce of the 88 SECOND PAN AMERICAN COMMERCIAL CONFERENCE Department of Commerce, for their very active and helpful participation all the time. I thank the Commissioners of the District of Columbia, and the President of the Washington Chamber of Commerce for their, interest, and I thank the Police Force for their co-operation in looking after the people in attendance. Again with all my heart, I thank every member of my staff and all those who have participated in this Conference. If I have omitted any name here or any reference that should have been made, it is because one cannot, on an occasion like this, mention every name, and I trust no one will be offended if there has been any oversight. Ladies and gentlemen, it is just eight years since the first Pan American Commercial Conference was held. A great world disaster interfered with the holding of a second one earlier. May we all go away from here with a prayer that there has begun an era of endless peace, that peace is now about to be so perfectly achieved that we can hold another one of these Conferences in the very near future. I may say that I have been gratified by the large number of Latin Ameri- cans and others who have come to me and told me how much they have enjoyed this Conference and how much benefit it has meant to them. Ladies and gentlemen, I now declare the Second Pan American Commercial Conference adjourned sine die. PAPERS AND ADDRESSES ON THE LATIN AMERICAN REPUBLICS AND ON PAN AMERICAN COMMERCE 91 SECOND PAN AMERICAN COMMERCIAL CONFERENCE PAPERS AND ADDRESSES ARGENTINA ARGENTINE TRADE TODAY By Senor Pablo Roth, Manager, Export Department, The Union Trading Company, Buenos Aires. (Read at the Evening Session of Monday, June 2) I wish to express my appreciation, in the name of the Argentine gentlemen present, and in my own, of the cordial invitation that has been extended .to us by the Director General^ of the Pan American Union, to take part in this Conference, with the object of giving and receiving the most ample information possible tend- ing to facilitate and expand Pan American commercial intercourse or exchange. Although the Pan American Union has gathered and put at the disposal of all of us statistical data and general information of the greatest utility, I con- sider it convenient on my part to present some data which, from their nature and my own observation made of them, may contribute to tiie amplification of the knowledge of certain special characteristics of the commercial movement of the Argentine Republic, and its importance in general, as well as in particular, with reference to this country. According to the General Office of Statistics of the Nation, the true value of the foreign commerce of the Republic in the year 1918 reached the amount of $1,307,392,000 gold, $480,896,000 corresponding to importation, and $826,496*000 to exportation. The balance in favor of the country amounted to 345,600,000 pesos. The general figures of the Argentine foreign commerce in 1918, present differences in considerable amounts from those of previous years, among which it is convenient to note the following: The greatest exportation up to today, as much for its quantity as for its value, surpassed in the amount of $244,000,000, gold, the highest value obtained, which was that of the exportation of 191S in the sum of $582,179,000 gold. If the prices of the articles of exportation could have been coordinated with the freedom of commerce, with the iicquiring capacity of the purchasing countries, the value of the exportation in 1918, would have reached approximately $1,130,000,000 gold. The fact of not having been able to establish that coordination represented a loss to the country of more than $300,000,000 gold. During the year 1918, the "quantity" of articles imported is the least recorded in the last fifteen years, representing, per capita, a sum of little more than half of that recorded from fifteen to twenty years back and something less than the third part of that corresponding to the years of greater importation. The favorable remainder of the commercial balance is the highest recorded up to today. It surpasses in the amount of 68,900,000 the highest obtained which was that of 1915 ($276,700,000 gold). The Argentine gold peso now equals the American gold dollar. TRADE METHODS SPEEDY LEGALIZING OF SHIPPING DOCUMENTS By Senor Ernesto C. P^rez, Consul Genes^ of Argentina in New York. The commerce of this country with the Argentine Republic has increased during the war to such an extent, and it is hoped that it will be proportionately maintained in the future. It has modified the old s}rstem of the clearance of ships 92 SECOND PAN AMERICAN COMMERCIAL CONFERENCE in such a way that today, in protection of that commerce a practical organiza- tion is necessary and urgently needed, which at the present moment is lacking. At present the steamship companies after the cargo h»s been accepted by the captain of the ship and after the freight has been paid, deliver the ship- ping documents to the shipper; these are presented to the Consulate for legal- ization. Usually because of a very short period of time between the delivery of these documents to the party concerned and the sailing of the vessel, the Con- sulate finds itself besieged by four or fivfe hundred packages with six, seven or eight hundred sets of shipping documents which have to be legalized for each boat within a certain number of hours, it frequently happening that two or three vessels with the same sailing date will be despatched in one Consulate. The shipper in many cases has to negotiate these documents with some bank, and this can only be done, as is well known, after the documents have been legalized. Further, these should follow in the same mail in order that they may be presented within the time the Customs House allows for the retiring of goods. Considering that this practice causes complaints through delays and fines to which this commerce is exposed, just as much from the shipper as from the receiver of the goods, the undersigned thinks it convenient to suggest to the ship- ping companies interested in maritime traffic with the Argentine Republic, the modification of the present system governing the clearance of ships, as it does not conform with the needs of this commerce, and, with this purpose in view, to submit to the consideration of the Conference, the following practical proce- dure : » That hereafter all the documents which comprise the loading of a ship be presented at the same time at the Consulate by the shipping companies, to be delivered later by the respective companies after being legalized to the parties concerned and that, after this has been done, the sailing date of the vessel be fixed taking into account that they should accord the shippers a reasonable time in order to enable them to make their banking operations and reach the mail which should take these documents to their destination, so that the repeiver of the goods may take immediate possession of the same. OPPORTUNITY FOR AMERICAN INVESTMENT AND TRADE IN ARGENTINA By Senor Horacio Bossi Caceres, Argentine Consul General in San Francisco. As a Consular Representative of the Argentine Republic, it gives me great satisfaction to express my opinion and that of my country in regard to those pro- pellant factors which should be put in motion, so that existing commercial inter- course between our respective countries may be consolidated and established upon a solid, permanent basis. It is now evident that owing to the disastrous war which so ruthlessly scourged old Europe and almost destroyed the industries in those countries, the great Northern Republic had the opportunity of being better acquainted with and therefore more able to estimate her Southern sister Republics, then discovering that there are, within their boundaries, immense and accredited markets which will enable her to rapidly increase her wealth and extension. Until five years ago your knowledge of the markets beyond the marvelous Panama Canal were extremely insignificant because your endeavors to enlarge them were iHsignificant,_ too, this fact being due perhaps to pressure of your pro- tectionist commercial policies, which traditionally have kept your capitalists in the background of the stage of the commercial life on this Contitnent, when as a matter of fact your wonderful progress and inmeasurable wealth are reasons more than sufficient to entitle your nation to go far ahead of all of the European countries, which, however, having been more foresighted and better connoisseurs of the Southern Republics, po'ured out their money into them and brought the eiforts of their workers' strong arms to make us and to make themselves rich. This remark- able fact has been synthetized by a ;iotable statesman of my country, when he said : * * * "-^g Q^g ^}jg wealth and prosperity of the Argentine Republic. to the sterling pounds of England and to the strong arm of the Spaniards and Italins. * * *" Yes ; that is true. The solid and ur;shaking foundation of British prepond- erance and control of South America lies upon the above mentioned fact. ■ And it ARGENTINA 93 certainly will be very difficult, not to say impossible, to lessen that preponderance, unless weapons and procedures similar to those England has used, should be used, also. Time after time it has been openly advised by your most proficient business men to employ several means not only to prevent actual intercourse between the Argentine and the United States from going down, but instead to surpass the high figures already reached which made a record in the history of our commercial life. Yet, only a few amongst them have demonstrated an exact understanding of Ar- gentina's commercial history and have pointed out the true items and causes which interfered with the growing up of North America's interests, the figures of which should be remembered now in order to make a comparative st'udy of the situation. From 1883 till 1913, that is, a period of over 30 years, the bulk of commerce between Argentina and the United States in comparison with the bulk of com- merce between Argentina and Germany and England during the same period reached the following figures: 1883. 1913. England $36,652,000 $251,254,000 Germany 11,851,000 129,227,000 United States 8,443,000 84,727,000 L'ater on these figures changed on account of the European war and at the end of 1917 the United States had risen to the top, according to the following data: United States $299,854,000 England 243,831,000 Germany 294,000 If we were to study the extraordinary triumph won by your country at this exceptional moment in the world's commercial life we certainly should find out two most transcendental facts which cannot escape the judgment of a sttidious and calm observer, to wit: the complete elimination of Germany from the markets of this Continent and the ever growing strength of the commercial links which bind England and the Argentine, allowing the former to retain unshaken the high place in the financial and business world of my country in spite of her enormous losses on the sea and her most critical economical political situation. Yet, the explanation of the British preponderance in Argentina's market could be easily found if only bearing in mind that she made such great investments in behalf of the economical and industrial development of Argentina, investments which are represented by the enormous sum of two billions of dollars, with which we have been able to move our locomotives and street cars, feed our ports, exploit our forests, cattle and agriculturing enterprises and inject vigorous life, activity and progress into all our industries, maintaining at the same time the credit of our Public Treasury with the almost whole British subscription of our foreign public debt. A- statement formulated the 31st of December, 1908, shows the British capital in Argentina, as represented by the following figures: Capital. Interest. Loans, Government, Provincial, Municipal... $319,273,215 $15,232,990 Railways , 831,803,415 40,247,155 Banks 39,312,000 3,525,480 Agricultural loans and mortgages 34,236,080 1,298,660 . Tramways .101,423,525 4,378,115 Electricity 25,762,950 1,438,425 Agriculture 20,094,985 1,241,020 • Various 73,648,540 3,929,930 Total .$1,445,554,710 $71,291,675 The value of maritime interests represented by quite a large number ot shipfs; as well as the capital invested in other numerous transactions, totals more than $100,000,000, which should be added. 94 SECOND PAN AMERICAN COMMERCIAL CONFERENCE Second to England, France is the nation among the European powers which had faith in the credit and capacity of Argentina and has made investments of nearly $400,000,000, distributed as follows : States funds $261,661,530 Banks 51,678,400 Transports • 64,011,450 Mines 2,744,890 Various 14,900,000 Total $394,966,270 Germany was the third till the beginning of Ihe war, her investments being estimated at nearly $300,000,000, distributed in banks, industrial concerns, electric companies, electric railways, etc. The above figures correspond to the same date, December 31, 1908- Summarizing, the foreign capital which met a most profitable and safe invest- ment in the Argentine Republic is far above the amount of three billions of dollars, of which two-thirds are owned by England, while such a small percentage cor- responds to the United States that it has to be considered' under the column of "others." Having in view the practical application which characterizes the American spirit in all orders of human activity, and, according to the facts just set forth above, I have no doubt that it should be very easy for you to foresee the measures of a defensive nature that England, France, Italy, etc., shall present in opposition to you in order to keep for their own benefit the position they had reached after long years of fruitful perseverance and uninterrupted accumulation of new and valuable investments and the fruits of their energies. Nevertheless, that does not mean that your cooperation in the business life of Argentina should have to face obstruction. On the contrary, the forceful exclusion of Germany which necessarily has been disastrous to that country and the weaken- ing of France and Belgium which will bring their sources of production to a very low level for years to come, will leave open and free the door of an immense field for yo'ur industries, if you only know how to appreciate the opportunity and meet the demand of Argentina, affording the same kind consideration, credit, loyalty and benevolence that the industrial people of Europe have always granted to her. So it is my opinion that you should not hesitate in pouring out your capital and labor into the young, flourishing land of Argentina, where institutions, codes and laws are so very similar to yours; try to help her by laboring her soil, cooper- ating in the development of railroads, the irrigation of lands, the building up of roads, harbors, etc., thereby securing the sale of your merchandise which are to be transported on your new ^cient merchant fleet and the return freight to make the traffic profitable. One of your most conspicuous business men, Mr. John C. Claussen, the Vice President of the Crocker National Bank of San Francisco, when addressing the Ninth Convention of the Southern Commercial Congress held at New York City, pointed out that American business men, who have hitherto been reluctant to make outside investments, probably due to the fact that with the swift and extensive de- velopment of his country the natural tendency has been to invest his money in local enterprises and lands. But while it is true that s\ich investments have largely con- tributed to the agrandizement of his country, it is also true that in proportion of the growing of its resources there exists the danger that this preference to make investments on lands may some day cause the prices of these lands to go to the highest point, and therefore, it is advisable and desirable, Mr. Claussen says, that the accumulated capital at home should find new open channels for best benefit and advantage of Americans. Now then, those channels are open to North American labor and capital in the beautiful land of Argentina. Its exceptional geographical situation, its vast and undeveloped meadows and luxuriant woods, healthy climate, wise legislation and social, commercial and political culttire at the same level with the most pros- perous nations in the world cordially invite your labor and capital to undertake all kind of activities. ARGENTINA 95 AMERICAN NEWS AND TRADE IN ARGENTINA By Robert S. Barrett, Trade Adviser, Bureau of Foreign and Domestic Com- merce, Formerly Commercial Attache to the American Embassy AT Buenos Aires. (Delivered at the Morning Session of Friday, June 6) Mr. Chairman, Ladies and Gentlemen : There, are two striking things in reference to this subject, one of which has been discussed to some extent today, but the other has not been touched upon. I remember so strongly it made such a tremendous impression upon me, the development of American news service in South America and particularly in the Argentine. You have all heard on many occasions how American news was slighted by the South American press and you have been told the reasons for that, ~why the South American was more in- terested in European news than he was in news from North America because of the fact that the newspapers of South America were subscribers to European press service instead of to American press agencies. That was changed two or three years ago when La Nacion, one of the great newspapers of Buenos Aires, commenced to receive a direct service from the United States. On January 1 of this year, the Associated Press went into South America and now I believe it has some twenty subscribers among the great daily newspapers of South America, and the United Press has almost an equal number of subscribers. The Associated Press, for instance, is sending some three thousand words a day of press service to the Argentine and most of this is American news of great interest to our country and to the people in Argentina. Then, at the be- ginning of the war, our Government established in Buenos Aires a most use- ful service, a branch of the Committee on Public Information and I want to say to say to you, ladies and gentlemen, that no department of the United States Government ever rendered more valuable and important service to this country during the war than the Committee on Public Information. There were times when they published in the great daily newspapers of Buenos Aires from three to four columns every day of live information regarding our developments in the war, our preparations for the war and our reasons for going into the war. It was a matter of great regret to me that when the armistice was signed the work of the Committee on Public Information was discontinued. I hope the time is coming when some organization will be established by American bus- iness men who will take up that work of publishing in the great newspapers of South America supplementary news and information which cannot be carried by cable. The Director General has asked me to speak to you for a few moments this morning on a subject which is somewhat foreign to that under discussion but which he wished me to bring to your attention, and that is the very great question which is in the minds of every man, of the export trade in the United States today. Will the United States hold any considerable portion of this great export trade which it has gained during the war and will it hold it in Argentina, which is one of the gfreatest countries buying American products and American goods ? After studying this situation, and considering it for the past year, in order that I could bring back to you the most reliable information on this subject, I am glad to be able to state that I believe that the United States will hold a great part of the trade which it has gained during the war. Our condition has been greatly improve"d. We are now prepared to give the credits which are desired. We have our own two splendid American branch banks located in Buenos Aires. Those two banks at the present time, although one of them is only three years old and the other a year and a half, have ap- proximately sixty million dollars in deposits. One of those institutions started a year ago a savings campaign and in less than seven months gained one hundred and seven thousand individual depositors in its savings account, with a total of about five millions of dollars. _We have in Buenos Aires at the present time eighty-eight representative American firms who are carr3ring stock, either in their own branch houses or by direct representation. Those concerns are prepared to meet any European com- petition and are selling direct to the consumer, the thing which is absolutely 96 SECOND PAN AMERICAN COMMERCIAL CONFERENCE necessary in foreign trade to do a very large business. I particularly refer to the paper trade. Before the war, the paper trade in the Argentine was entirely in the hands of the Germans. Two American wholesale houses, carrying tre- rnendous stocks, are now located in Buenos Aires. One of these houses alone did very close on to three million dollars worth of business last year. That house includes customers from the smallest printers from one end of the coun- try to the other. They have their traveling representatives, their branch stores ; they give credits that are necessary and consequently they have the business so the Germans can never come back and get the paper trade. That is true of many other of our branch houses of American manufacturers and our branch lines. I want to add just one word before I leave and that is rather pessimistic. Do not look for too much trade from Argentina during the balance of this year. Argentina is like all the rest of the -world, it is sufi^ing from the war, it is suf- fering from the readjustment, it is suffering somewhat from labor troubles, strikes, etc., not any worse than anywhere else but enough to make people restrict purchasing. Then there is the firm belief in the minds of the Argentine business prices are going to be lower. They believe that manufacturing costs all over the man — and I tell you that they are the cleverest business men in the world— that world must fall; that freight rates are going to drop and consequently they are buying from day to day and are not placing any larger orders until this Fall prices drop, which they anticipate. Consequently, buying in Argentina is very limited. Then there is an over-surplus in many lines of manufactured articles in Argentina. When the armistice came in November, every manufacturer in the world who had orders pending in Argentina for goods — some of which had been pending for a year and a half — shipped everything that they had all at one time to Argentina. Fortunately for them, when the armistice came there was ship- ping which could be diverted to their use which we had anticipated using for moving troops to Europe and we sent those ships in November and December and January to the Argentine and they came down there loaded to their capacity with manufactured goods. The result was that there was an over-surplus, there was a panic in some lines, textiles fell in prices 40 per cent, below prices in New York and that con- dition is going to last throughout practically all this year. So do not look for too much business in Argentina this year, but remember that Argentina is today the most prosperous nation on the face of the world. Any country that two years ago could lend the Allied nations $250,000,000 to buy wheat and corn and meats and can come back again this year and lend those countries $200,000,000 more; which could put up $140,000,000 to keep the American dollar from declining in the Argentina market ; which could pay to Ger- many and to France and to England practically $350,000,000 of obligations during the war, who has had a balance of trade in its favor of $600,000,000 during the last four yea.rs, and which today has a larger per capita gold reserve than any other nation in the world, is a country that is going to be in business when these temporary conditions are done away with and which is going to be the largest consumer of American products. And the Argentinians like us, they want us down there, they are willing to buy our goods and all that they want is a fair show. I am sure that we will be able to give it to them. 97 BOLIVIA PAN AMERICAN FINANCES AND TRADE WITH SPECIAL REFERENCE TO BOLIVIA By Senor Julio Zamora, Financial Agent of the Bolivian Government. (Read at the Morning Session of Thursday, June S) Gentlemen : — All of us, North, Central and South Americans congratulate ourselves upon this opportunity afforded by the Pan American Union for the purpose of discussing commercial and economical subjects. At this momentous time marking the conclusion of the greatest war in history, this conference per- mits us to reorganize our business and to lay the corner stone of normal life for all nations. The most striking lesson for the South American Republics, learned since the beginning of the great War, has undoubtedly been a knowledge of the un- certain situation of the countries, constituting one Continent, and which bound by ties of neighborhood, race, language and history have neglected to live eco- nomically independent, due to the fact that they had overlooked commercial in- terchange among themselves. Profiting by this experience, the leading men of the South American Re- publics, should direct their steps to effect a complete reorganization in the in- dustrial field. They should promote preferably through a policy of reasonable protectionism the wide distribution of national raw material for manufactures, and should inaugurate a spirit of enterprise, so often lacking amongst some of our wealthy people. This would be the starting point for the commercial inter- change between neighboring countries, and, therefore, would compel Pan Amer- icanism in the future to be based upon very close economic relations, thus bind- ing with even stronger ties, all the Nations that constitute the Americas, as these will be more firm than those created by Diplomatic channels. South America possesses, herself, all sorts of products to amaze the-world, with an overabundant production of whatever its needs may be. Each of the Republics has within its territory particular zones which render special products, and no doubt a day will come when South America will supply all the n^eds of the other Continents, a day when she will go "over the top." But to m%ke this fact a reality. South America needs capital and immigration. As regards Bo- livia in particular, I can assure you, without any fear of contradiction, that noth- ing would please us, the Bolivians, more than to promote our industries and to settle our fertile, although now deserted agricultural regions, and to this end we prefer to interest American capital and American immigration rather than any other. For we have every reason to admire most heartily and to envy the gigantic activity and vigor of this country, that possesses along with a lofty democratic spirit, the gift of carrjring out and organizing great and astonishing enterprises. It is my own opinion that the duty now of the United States is to look forward to the commercial and industrial development of the countries of Latin America. I advocate the following reasons : First : American solidarity demands the use of American capital in pref- erence to any other; Second, the weakened and crushed condition of Germany makes it imperative for the United States to replace in the economical, com- mercial and industrial field all that Germany gave, loaned and purchased in South America; Third, because the War and the opening of the Panama Canal have operated to entirely change the commercial situation in that part of America, making of the United States the pivot of this movement. Bearing these facts in mind, the United States will not accomplish the redeeming work so successfully started in the name of right and justice, if they do not give the necessary attention and care concerning the economical and indus- trial necessities of each of the South American countries, and in so doing this work will be of mutual benefit. It is essential to state that wherd we seek Amer- ican capital or lay down commercial transactions before merchants and bankers in the United States we do not ask gratuitous favors, rather we offer extraor- dinary profits. yo SECO^fD PAN AMERICAN COMMERCIAL CONFERENCE The United States of North America cannot excuse themselves for lack of capital, as they are to-day the wealthiest country in the world. If there is anything over and above— it is money. They should, therefore, lend their financial help to practical and profitable enterprises, provided, of course, they are duly guaranteed. To accomplish this, they must accommodate their banking transactions to South American peculiarities, and it is essential that the leading banks of the United States, or an association of these banks, open branches in every one of- the South American Republics. The first and mutual advantage rendered by fllese offices will be the most trustworthy source of information for American investors on contemplated trans- actions, as whatever we may now say regarding the undeveloped resources of immense wealth of our territory; of our credit, and of the advantage of certain transactions, this information might be received with prejudice by those who think it is a question of mere propaganda. It is, therefore, necessary that this information be transmitted by the American agents as quickly as possible, thus enabling speedy and trustworthy transactions. I myself believe that the opening of branch banking houses in all the South American Countries, must be one of the endeavors of this Second Pan American Conference, as this involves the solution of economic and commercial problems. Now, dealing with the Bolivian financial situation and necessities, I must state that the Bolivian people have realized that the most sensible thing to do in order to be in readiness for the natural development of its unexploited riches IS to construct railroads; therefore, the collective effort of the Republic has been directed to their construction. Bolivia not only produces silver, gold, tin, tungsten, antimony, bismuth, copper, etc., as is generally known at the present time, but she also possesses fertile regions suitable for agriculture, wonderful plains for cattle raising on the North and Northeastern territory, and vast for- est which produce all fruits and woods known to the world. Unfortunately ex- ploitation on a larger scale cannot now be effected, due to the enormous distances separating these regions from the consuming towns or seaports. With the desire to reach by rail the most distant and wealthiest places of the Republic, a plan was inaugurated in 1916 and a contract entered into with the National City Bank and Speyer & Company to construct a system of railroads by means of a Construction Company, capitalized with five and a half million pounds and secured as follows : — ^The American firms contributed three million pounds in debenture notes of first mortgage on the railroad to be constructed, and two and a half million pounds were subscribed by the Bolivian Government on income bonds issued on Second Mortgage, which are to be cancelled in the year 1932. This contract was duly and legally carried out by both parties. The roads were constructed and the capital entirely expended. These roads are now in full operation and their profits are increasing daily, thus confirming the ex- pectations which originally induced the capitalists to undertake the work. The Railroad System now completed and in operation comprises the fol- lowing lines: Oruro-La Paz, Oruro-Cochabamba, Potosi-Rio Mulato to join the main trunk line of the Antofagasta-Oruro, and the line from Uyuni another station of the main system, towards the Argentine Republic, joining the Central Norte Argentino, which has the same standard 3 ft. gage as the Bolivian Rail- roads which is also the gage of the Arica-La Paz Railway. The completed system will link the Atlantic and Pacific Oceans by a railway starting in Buenos Aires, and terminating in Pacific Port of Arica. The above shows the great international importance of this work in which completion the Bolivian Government is so keenly interested and for which it is seeking a million and a half pounds loan which will be explained further on. The capital obtained through the Speyer contract was only enough to carry out the work of those lines as above stated, and it is the aim of the Bolivian Governmerrt to continue the extension of its Railroad System securing fresh capital and new contractors. Those lines to be constructed, or in the course of construction, are: BOLIVIA 99 (a) Atocha-Tupiza Railroad, with an estimated cost of one million pounds sterling to join to the Argentine System. I have stated before the international significance of this road and I shall only add that it goes through a region of unexhausted wealth where the "Quechisla" and "Oploca" Mines are located. (b) Potosi-Sucre Railroad, now under construction by the Government. An estimate of one million pounds will be necessary for its completion. This line has industrial significance as it is the first to be extended into the produc- tive eastern agricultural and petroleum districts. (c) Cochabamba-Santa Cruz Railroad. Surveys on this line are actually being made, and it is also very important, as it will branch the Speyer System to the wealthiest district of Bolivia, a zone which produces rice, sugar, woods and similar tropical products, and also cattle. The actual production of which is now very limited, due to lack of cheap transportation facilities. (d) Railway from La Paz to a Navigable Point on the Beni River. This itself means a very important route, running through vast and wealthy agricul- tural regions to heart of rubber plantations. It is now under construction by the Government with American capital. To start this work Bolivia secured a loan of five hundred thousand pounds, through the banking house of Chandler & Company, and this sum will only suffice to reach the Yungas Zone. Its prin- cipal production consists of coca, coffee, tobacco, fruits and woods. We now require the necessary capital to extend this line to the Beni. Here, to interest capital on the loan required by the Bolivian Government, I want to point out the following: The Speyer System, which runs through the heart of Bolivia, has been constructed with American capital, and will be the exclusive property of Amer- icans the moment they return to the Bolivian Republic the two and a half mil- lion pounds which represents the share of the Bolivian Government on second mortgage bonds. All the benefits of these railroads, and the increased value that they will attain through the development of the country, will also benefit the owners. There is no doubt that these four lines will ultimately be joined to the South American System of Railroads, and that they will bring into closer contact re- gions now far distant. These facts will be of such interest to American capitalists that the necessary funds that Bolivia needs for the extension of these lines will assuredly be forthcoming. At any rate, this reflection is only a mere explanation and should not be considered as of general interest. Further on I will offer a thorough explana- tion of this question. Bolivia, a young nation, wishes to place her name in a prominent position as regards international personality through sincere fulfillment of her obliga- tions, and I here wish to call to your attention the fact that my country has never used the proceeds of any loan in unprofitable enterprises, such as war preparations, payments of debt, luxurious buildings or normal administration expenses, but has devoted these funds entirely to the construction of railroads and to constitute the Banco de la Nacion Boliviana, which is the medium for the distribution of credit and which provides the means for commercial and in- dustrial transactions of the country. The following statement shows the outstanding balance of our loans: Morgan Loan — 1918: Outstanding — ^£362,000. This small sum has been bought in to the last cent by the Banco de la Nacion Boliviana; therefore, the Government is relieved of any obligations to the above mentioned Bankers. French Loan — 1910: Outstanding — ^£354,000, which was allotted to the foundation of the Banco de la Nacion Boliviana. The Bolivian Government re- tains all shares, and is authorized to offer these shares as a guarantee for any future loans now required. It must be added, here, that the management of this bank is carried on by the shareholders through an Advisory Board of five members, of which only two are appointed by the Government. The financial situation of this Bank is particularly remarkable, and successful, as may be seen by its semi-annual statements. French Loan — 1913 : Outstanding £946,000. The purpose of this loan is for the construction of the Tupiza-La Quiaza (Argentina) Railway, and was is- sued on bonds at the net rate of 90 per cent., S per cent, interest and 1 per cent, sinking fund. This loan was obtained under the best conditions, so far obtained CUBA FOREIOK eOMMERCE 1917 TGTAli * 639,4-19, 000 OTHER. ♦2,22 iJOi OTHER AMERIGAW COUNTRIES W^ PaU AM£/r/CAU i/A//0// BOLIVIA 101 by the nation, and only one-third of the whole amount has been spent up 'to the present time. The proceeds are in the hands of the Trustees, the "Credit Mo- biliere." Chandler Loan— 1917: Outstanding $2,361,000 American Gold, for the construction of the La Paz-Yungas Railroad already referred to as being the first part of the Beni Railroad. Outside of these loans, which added together, make a total of £3,134,000, the Bolivian Republic has no other obligations. Deducting from this amount £2,500,000, which the Concessionary Company owes the Bolivian Government on second mortgage of these Railways, and which are to be paid in the year 1932, the external public debt in reality only amounts to £634,000. In order to show how sound is the Bolivian economical situation, I must also refer to her internal debt, which only reaches the figure of £2,400,000, in- cluding in this amount internal credits, military indemnities, loans for public works and similar obligations since the origin of the Republic. Now then, adding this internal debt of £2,400,000 to the total amount of £3,134,000 external loans, without deducting the amount of railway concessions, we arrive at the conclusion that the Republic, with two and a half million inhab- itants,' only owes £5,534,000, which in American currency is $10. per capita. The latest statistics which are available to show the financial conditions of some of the cities of the world points to the favorable situation of Rio de Janeiro, Brazil. This City lately obtained a loan of ten million dollars American currency. The latest statistics state through the firm of Imbrie & Company that her debt is $65. per capita : These statistics further show London with an in- debtedness per capita of $120, Paris with $105; New York with $207; Baltimore with $114, etc., etc. It is not only my intention to compare the resources of these great cities with those of my country just awakening to industrial life, but I believe the trifling amount of its debt is remarkable in relation to its population. It is due to all these facts that Bolivia has never defaulted I'n the payment of the principal and interests of any of its funded indebtedness, which may be confirmed by the bankers who have loaned the money. Bolivia is now seeking new loans and feels absolutely positive that she will again punctually meet her obligations. Among the securities offered as guarantees are presented, firstly: several internal taxes, which are now being deposited in the special accounts and which could be directly handed to the bankers, applicable to payments of interests and sinking fund. Secondly, the Government shares of the Banco de la Nacion Bo- liviana, together with their income. Thirdly, the two and half millions of sterling pounds in second mortgage bonds on the Speyer Railroads. Fourthly, the special mortgage of each of the railroads to be constructed, allowing the bankers the control they may deem necessary on the exact and complete investment of the principal; and fifth: internal revenue of the Republic. My country requires also loans for public improvements, such as sewers, etc., in the principal cities, to be guaranteed by sound national revenues, which will permit a prompt payment and the securities for which could be deposited with the bankers who will make the loan. Besides the Legation in Washington and the Financial Agent on a Special Mission, who has the honor of addressing you, Bolivia has a Consul General in New York who will furnish the necessary data, which may be required by those who are interested in our enterprises. On my part, I want to add: Bolivian laws and public authorities guaran- tee personal^ freedom, property and the rights of foreigners, as well as those of their own citizens. Our political Constitution has been taken on its basis from the American Constitution, and is faithfully adhered to and observed by all. The Military caste, which in the first years of the Republic, created agitations, has now totally disappeared and the Army is meritorious and the best guarantee for the national welfare. Political parties fight without hatred, and there is not a man who does not deeply realize that internal peace is the solid base of future progress of the country. In conclusion, I wish to call your attention to the following commercial abnormalities-;- to European ports. For instance, a ton of mineral to English 102 SECOND PAN AMERICAN COMMERCIAL CONFERENCE ports only costs £7, from the Chilean port of Arica, while the cost of same to New York is £9. Second : The latest restrictions concerning the importation of tin, have greatly affected the Bolivian market, as that metal is Bolivia's principal product. Under conditions of free trade it is particularly serious and extremely prejudicial to Bolivian commerce to prohibit the importation of certain metal into the United States. For mutual benefit, I would suggest that these precarious measures be sus- pended. If our tin is not sold in the United States and converted into gold we cannot very well buy here our necessities. I apologize for this lengthy address. I thank you for your most generous welcome, and wish success and prosperity to all the sister Republics herein rep- resented. May closer bonds of sincerity and friendship unite them for common welfare and prosperity. COMMERCIAL CONDITIONS OF BOLIVIA By Senor Jose Manuel Gutierrez, Consul General of Bolivia of New Yor^k. The European war terminated, in its principal phases, last November, and in changing the international policy of the Nations of the world, it has changed and will even further change the commercial progression of peoples, and especially so those of the Latin-American countries. If the commerce among peoples constitutes the foundation of their wealth, of their vinculum and amity, to the point of creating common sympathy and affec- tion, we should devote our utmost attention to it in order to establish in this way a commercial intercourse and develop a fufure abounding with benefits to individuals and nations. It is an undisputed and unquestionable axiom that friendship among peoples is precedent to the jnaintenance of commercial relations with equity and honesty. Commerce brings about goodwill among individuals, forms families, thus improving races, interests Governments, associating the interests and strengthening the promises of the future. Governments themselves can do nothing before interests are created by commercial intercourse. They must follow the courses prescribed by the said interests, support them or regulate them, but curtail them — never. Countries that have no commercial vinculum either do not know each other or mutually distrust one another. Up to 1914 South American commercial progression pursued a fixed course toward European markets. The Europeans had learned to know our customs and our idiosyncracies, excusing perhaps our deficiencies and also taking advantage of our sincerity as young peoples. The United States did not solicit our commerce. They had too many important matters at home to direct their attention toward South America. Nor did we South Americans endeavor to do business with this country. We did not know each other nor was there any marked inclination toward a new commercial contact. That remoteness, without animosity, of course, would perhaps have lasted a long time, notwithstanding the extensive work of the Pan American Union and of other associations of prestige in the United States, had not the difficulties of the war for both created, in prominent characters, a happy relation of commercial interests between both Americas. Four years have elapsed since the intercourse began, years of anguish, dan- gers and uncertainties. In this length of time, do we know one another sufficiently well, i. e., our customs, needs, aptitudes, habits and interests? We can frankly say that we are still very remote. We have not intermingled. The same circum- stances imposed by the war, with its innumerable restrictions, have hindered the establishment of a conscious relation. And it is regrettable but imperious to say that in that abnormality of circumstances and relations, we South Americans have endured the worst part. Yet, through all we find the contact already begun and there is a desire and indication to perpetuate a normal union. This Conference, of vast importance at this time when everything seems to change and follow a new direction, is an eloquent manifestation of that tendency to contract the commercial union between the Latin American countries and the United States. It is a mutual ambition, for the realization of which there is needed an abundance of determina- tion and an analytic investigation of the best means of establishing a commercial BOLIVIA 103 intercourse between both parts of the American continent. Among the points to be investigated we should not lost sight of the special character of the South Ameri- can, his sensitiveness, even in the commercial field, his timidity at times and his ingenuous impulse toward grandeur. These investigations must bring about a desire to assimilate fixed customs on both sides. The development of facilities for producer and consumer, sagacity in filling orders and execution of the details desired by the Bolivian merchants, consideration of the means of transportatioin in South America when packing goods and other minor details constitute the basis of good commerce. We feel that it is not in vain to comment here upon the system that the German merchants of South America had followed. German commerce paid par- ticular attention to orders and exercised the greatest care in the execution thereof, adhering to the desires of customers and even to their personal preferences; they established houses in all cities, even in the less populated sections where there scarcely exists any agricultural or livestock industry. In 1917, I had the oppor- tunity of travelling over the northwestern and eastern rivers of Bolivia, on the banks of which there are small populations of about 100 or 200 inhabitants, and I noticed that in each centre there was a German agency and a warehouse of mer- chandise of a quality appropriate to the cHmate and customs of the natives. Those agencies exchanged their merchandise for products of exportation, such as hides, sugar, rubber, etc. They tried to absorb the large as well as the small markets of Bolivia, and their action followed a perfectly systematic course. We cite this example only with the view of proving the necessity of developing an active and analytic commercial policy. Having disclosed these general considerations it is now expedient that we cite figures with regard to the commercial activity of- Bolivia these last years. Our purpose is to Jrove that Bolivia is a large productive country and that it possesses valuable natural elements of intercourse in its industrial applications. In citing these figures we are going to make evident that the United States had not directed her attention nor influences toward Bolivia, until the European conflict broke out. We also desire to manifest that Bolivia possesses natural products sufficiently extensive to interest the commerce and capital of this country. Bolivia pursued, with the other South American countries, a commercial course toward European markets up to 1914. Commerce was almost entirely directed to England, France, Germany, Belgium and other countries, sending their mineral products in exchange for manufactured goods and articles. The United States did not wish to play a commercial role in that movement of barter or inter- course. German commerce encouraged its activity to the extent of establishing an office in the German Transatlantic Bank which took charge of propping up its commerce, with more than capital, with a scries of credit combinations, taking advantage of the good will and good faith which characterize the type of person found in Bolivia. The European firms in Bolivia came to study the country, its necessities, giving certain facilities to commerce, not under a gratuitous pretext. With or without pleasure, Bolivia accepted these facilities, considering that it needed and still needs them for the strength of its situation. In 1913 the exterior commerce of Bolivia gave the following figures^. Exportation 59,327,343 Kilograms with a value of Bs. 65,801,146, corresponding to tlTe United States nothing more than : 3,149,556 Kilograms with a value of Bs. 2,452,500, an insignificant proportion, considering the importance _ and extent of the American factories which needed natural materials such as tin, bismuth, copper, antimony, etc., etc. It frequently happened that these materials which the United States received from Europe had originally come from Bolivia and gone first to France, England, Germany or Belgium. This signifies that up to 1913 the United States scarcely represented a proportion of 11 per cent as receivers. From 1914 (end of the year) the commercial course begins to change, with marked tendency toward the United States until it reaches the following figures in 1917 : Exportation (From Bolivia) Kilograms To the United States 54,175,079 To other countries 97,621,952 151,797,031 104 SECOND PAN AMERICAN COMMERCIAL CONFERENCE the United States having a proportion of 35 per cent of the total production of Bolivia. In 1918 the commercial activity of Bolivia was as follows: Exportation Kilograms For the United States 35,796,012 For other countries 35,877,617 Total 71,673,629 Value in Bolivians For the United States $Bs. 56,601,002 For other countries $Bs. 78,203,518 Total $Bs. 134,804,520 In 1917 the imports of Bolivia reached 147,267,236,706 kilograms with a value of $Bs. 33,480,831.10, of which 36,649,461,585 kilograms with a value of $Bs. 11,167,398.44 corresponded to the United States. In 1918, the figures corresponding wholly to the United States reached 217,415,299 kilograms. Since the termination of the war, the commercial situation of Bolivia has been unstable. The producers annd importers surely await inter- national adjustments to guide their course of action. The sudden decline of wolfran and the prohibition of the importation of tin into this country are causes that have deeply perturbed the commercial activity of BoUvia. Should this situation continue, surely BoUvian commerce will turn toward Etxropean markets no matter how long the latter may delay in executing orders. To overcome this, official action should be taken by the United States. It must be considered that Bolivia lives upon and is sustained by the value and the good and ready market for its mineral products, the only source of its national wealth. It would be futile for North American commerce to think of supplying Bolivia if it does not oflFer a favorable market for its own products. Will it be possible to face this question in a manner salvable to international intercourse? The decline in the price of minerals in this country has brought about a violent decHne in exchange. In 1918 Bolivian exchange had risen to 2.38 Bolivians, having gradually declined recently to 2.82 Bolivians, a frightful reduction for the Bolivian importers of articles from the United States. Tin being the principal export product and the prime industry of Bolivia, which regulates the importations and the exportations of the country and which constitutes to a great extent the pubhc, as well as the private wealth, it is deemed advisable to enumerate data on this point In 1917 Bolivia exported 46,056,460 kilograms in bars and concentrated form, with an official value of 84,366,952.51 Bolivians, to: Weight Value Per cent Bs. Per cent Great Britain 66.95 67.83 United States .Tt 32.33 31.58 France 0.57 0.44 ' Chile 0.15 0.15 In 1918, Bolivia exported 48,801,027,000 kilograms with an official value of 129,611,139.64 $Bolivians, about 54 per cent of which corresponded to the United States. The importations of tin to the United States in the year 1917, taking the diflferent zones of production, including Bolivian bar tin, in tons of 2,400 lbs., were as follows: Tons. Straits 32,675 Australia 1,483 "Banca & Billiton" 9,274 England 6,155 China 5,177 Others 104 54,868 which, when reduced to metric tons would be 55,747. BOLIVIA 105 Bolivian statistics of 1917 show the following total of tin exportations, partly in bars, to the United States : Ks. 14,889,360 Bars ^ Ks. 46,687 Total Ks. 14,936,047 During the years of 1917 and 1918, tin reached extremely high levels, but the restrictions, prohibition and consequences of the "black lists" limited the industrial action of Bolivia, the high price of the product making it, in fact, illusory. The black lists, especially, brought about the stagnation of warehoused products in Bolivia and largely caused the panic among the exporters, even though they had no connection with German houses. It is regrettable to have to admit that the said black lists enormously injured Bolivian industry, to the point of mak- ing a number of victims, thus proving detrimental to both private industries as well as to the State. The curtailment of mineral products in Bolivia alone was disastrous, both because the producer had been accustomed to consider his material as finding a ready market, and because of that being apparently the only source of his wealth, he saw no other means of importing material from abroad. Very diflferent is the situation of other agricultural countries that enjoy the use of credit or advances against harvests. Those countries generally enjoy credit for one year periods. Bolivia places raw material on the market and requires immediate remuneration, and therefore rarely resorts to credit. The Argentine Republic, for example, an agricultural and live-stock country, effects enormous exportations to Europe and the United States, but must, to a great extent, apply for credit, in view of the time it must wait to realize upon its products or harvests. The United States, for national economic reasons, has prohibited the importa- tion of tin to its markets. _ Respecting those measures, which must be of great importance for their own interests, we only cite this circumstance as conclnsive- of the flight of Bolivian merchants toward other countries. How can the Bolivian merchant trade with a country which closes to him its markets for his principal product? How would he pay the value of the goods that he acquired from that country? Commerce indispensably requires the execution of the principle of reciprocity, as the motive and basis of its transactions. To close its markets means cancellation of orders. The Pan American Union, in homage of its high mission, should aim to overcome these difiSculties in order to create a normal and increasing intercourse. In this report our commercial situation is manifested, its antecedents, its oscilla- tions, its courses and its actual situation, a situation which we cannot qualify but with uncertainty. Transportation in Bolivia, as in all countries, is intimately connected with its commercial and financial activity. Bolivia, a mountainous and broken country, incrusted in the summits of the Andes, with lofty hills that project giant-like over the immense plains, with violent cuts that form streams and rivers that irrigate valleys of exceptional vegetation, some running into the Amazon, others into the River Plate and some branches into the Pacific, has geographical conditions which require over the development of everything, a railroad project, if that rich country is to be made a producing power. There are probably few countries in the world, perhaps none like Bolivia, abounding in natural *-ealth. Yet, it seems thst nature desires fo cbntrbl that wealth by adverse geographical conditions. The work of the Bolivian Government, for many years back, has been in- sistent in endeavoring to lay railways across the territory, which, by bringing together the populated centers and uniting the mining districts with them, may actually result in the development of the industry. The Government has determined to exert every possible effort to effect that work and has invested the capital and credit of the Nation. Unfortunately, despite all the effort and labor, the work projected has not been completed. Several lines of vast importance and immediate need are still lacking, either to unite territorial sections, or to form a strong link with neighbor- ing countries. The construction of the Atocha-Tupiza stretch which will unite the ipdrts of the Pacific w'tli that of feuenos Aires on the Atlantic, js a work which preocenpies the BofiTTsti GttrWtfmwf. When wa! warli?, wWcli does ifet i^rtsenl 106 SECOND PAN AMERICAN COMMERCIAL CONFERENCE more than 105 kilometers, is terminated, the interocean communication crossing over the high peaks of the Andes into the richest mineralogic region, will be an important factor not only for Bolivia, but for all America. The impulsive pursuit of the Sucre-Potosi Railroad, uniting the rich valley of Chuquisaca with the mines of Potosi, will conclude a positive national progress. The Cochabamba-Santa Cruz line, uniting the agrictdtural, live-stock and petroleum centres of both cities, will serve as an opulent dispensation to the entire Republic. The line projected to the head-waters of the river, to connect the Bolivian plateau with the navigable waters of the Amazon, means' a prospect of capital importance to Bolivia and to Brazilian commerce. Other lines projected by the Supreme Government of Bolivia, will complete the railroad system, placing the country in a position to develop its industries to the extent that its necessities and natural ambition to promote the movement of intercourse whiclT the foreigner may require. Its existing railroads, even if they fulfill the indispensable needs, do not facilitate an extensive development. There are three routes, which, starting from three points on the Pacific coast, permit the country to effect its imports and exports originating from the mining centers of the Republic. Those routes are not sufficient to assure easy communication. The Government aims to complete the railroad system, projected and to accomplish it,^ the National Congress has instituted laws that authorize the Execu- tive to negotiate for sufficient loans. To effect those national credit operations, the Supreme Government has established in the United States a Special Financial Mission, presided over by Mr. Julio Zamora. We believe that this is an opportune time for North American capitalists to facilitate the resources needed by Bolivia for the work referred to. We have as a basis, in proposing these transactions, in the first place, national honor and the good faith of the Bolivian Government, verified in several previous transactions, financed with the utmost exactness and answering obligatory provisions vnith strict punctuality. In the second place, we have as title and basis of operation our natural wealth, made profitable upon the extension of our means of railway com- munication ; we have certain fixed revenues to serve as security and we have untried industries, such as petroleum, which by themselves would be sufficient for the consummation of credit transactions. Possessing, as we do, such elements, what is lacking for enterprising and influential capitalists to furnish us the resources, which would complete our progress in transportation and would be the foundation of flattering mutual pros- pects for the negotiators and for the country? That comprehension of our wealth and of the liberality of our laws is lacking ; knowledge of our internal conditions and of the facilities required is lacking; there is lacking promotion of the con- viction in the United States that Bolivia is not a turbulent country inclined toward revolutionary movements or political changes ; there is lacking the fixing in the minds of the capitalists of the United States the evidence that every new country requires Tational assistance or perhaps simply the elimination of pressing condi- tions. In the United States, capitalists and merchants manifest their desire and resolution to negotiate with the South American countries. To carry out those projects they must take upon themselves the means expeditious to consummating transactions ; they must understand that profits are obtained after labor has been undertaken, not before work has been executed. To solicit anticipated pfofits is to annul the progress offered or surmised. The different companies that have con- structed railroads in Bolivia or that have exploited them, have been able to prove this truth. None of them can say that they have suffered losses. All of them can say, with afSrmfition of evident truth, that their financial transactions have sur- passed their hopes. It is useless to think of uniting the United States with Bolivia commercially if facilities are not anticipated, and among which that relative to transportation within the Republic requires immediate action. We realize that this point is fundamental. As supplementary data to these references we attach to this report among other tables, one on "Kilometric Extension and Distances of the National* Rail- roads." The foreign obligations of the Republic of Bolivia are taken care of, as we have already manifested, with great scrupulosity, without a single case of delay or excuse in fulfillment having taken place to date. The National Government BOLIVIA 107 and the entire country know very well that there is no better means of fomenting favorable opinion of one country in another than the fulfillment of obligations, which become testimonies of good-faith and earnestness. At the end of 1918, the external debt of Bolivia stood as follows: MORGAN LOAN. — Contracted in New York in virtue of Law under date of November 28th, 1908, with the bankers, J. P. Morgan & Co., for iSOO.OOO at the rate of 90 per cent issue, 6 per cent annual interest and 2 per cent sinking- fund. This obligation having been served in the meantime, existed until July 1st, 1918, a total of £378,730.15.0, minus that withdrawn in casting lots in January of the present year, or nothing more than about £362,000.00.0. FRENCH LOAN.— Was contracted in Paris with the Creditor Mobilier Francais for £1,500,000, conforming to the Legislative authorization of February 5, 1910. Up to the 1st of July, 1918, there was a circulation of nothing more than £1,354,840. FRENCH LOAN OF 1913.— Was authorized for the construction of the Quiaca-Tupiza Railroad by Law of December Sth, 1912. The amount issued is £1,000,000. Up to July 1st, 1918, there remained a balance of £946,280. LOAN FOR THE YUNGAS RAILROAD.— Authorized by law under date of November 17, 1914, and September 25, 1915, it was contracted in New York, January 22, 1917, with Chandler & Co., for $2,400,000, there being in circulation of $2,351,280 up to June 30, 1918. "The total amount of bonds originating from the loans mentioned has been £3,560,007. The balance to that date was reduced to £3,184,700.15.4." (The Secretary of the Treasury so reports in his message to the Assembly in 1918.) The internal debt up to June 30, 1918, was estimated at 5,070,849.98 Bolivians, which is likewise taken care of by the Government with zealous exactitude. Here are the exterior and interior national obligations, which are not large considering the wealth of the country and the value of its products. With the revision of these figures and a reference to the "Presupuesto Nacional," which distributes the ingress and egress, it would be easy to discern the natural question of what are the causes of the official wealth or revenue of the State being so small, with such insignificant obligations on the part of the Nation and an exportation of material on such a large scale. The interrogation is probably logical, and we must therefore explain the causes that result in that abnormality. And as an explanation there is nothing better than to transcribe what Mr. Dario Gutierrez, ex-Secretary of the State, says in his Ministerial Message to the last Assembly. In its foreign commerce, Bolivia really has exceptional conditions. Judging from statistics, the value of the inaterial which it exports is equivalent to four and a half times that of the aggregate of its imports. There is doubtless an error with regard to the figures that indicate the value of the material imported, arising from the fact that the Custom House tariff of 1905 was taken as a basis, which ascribes greatly reduced valuations to the greater part of the merchandise. In order to have a result more consistent with truth in this respect, the total amount of imports should be increased by SO per cent, as per official indication made by the Director General of Custom Houses. Statistics of international commerce for 1917 show the following: Importation Bs. 33,480,831.10 Exportation Bs. 157,748,054.09 adopted as a basis of calculation, for the aforesaid reason. The official referred to advises that an importation of Bs. 50,221,245.65 be In any case, the value of the exports would represent triple that of the imports. This tremendous difference could be supposed a constant accumulation of capital in the country, a lively industrial development and an economic prosperity in harmony with the results of intercourse. But not all of the volume of exports represents national wealth. The geological conditions of our soil offer an abund- ance of mineral products which the demand of the industry appraises ; ; but, the net i^ofit of the greater part Is distributed outside of the country, a severe un- stable equilibrium in the Bolivian economic situation having been observed during the long period of that commerce, the principal sign of which was the undervalua- tion of the money in circulation, or, as is said in commercial language, the decline in foreign exchange. 108 SECOND PAN AMERICAN COMMERCIAL CONFERENCE The most careful administrative disposition was not sufBcient to maintain uie monetary circulation in a normal condition, nor did^the eflforts of public in- fluence avoid the issue of specie, which, in the capacity of merchandise, liquidated export obligations. If after perusing the press of thirty or even twenly years ago, we consult the lessons of our economists, the initiative of our politicians, the reflections of business men, facing a constant exportation of coined silver, whose value in foreign markets exceeded that which the laws of the interior ascribed to it, we shall be able to reahze the numerous errors that were made in those times, the basis of our scientific knowledge concerning this unsettled problem. Terrible crises came to pass one after another, and on some occasions they coincided with the rise in price of our natural products and the increase of indus- trial exploitation. In view of that ironic paradox, statesmen resorted to artificial measures, either taxing the exportation of money in order to maintain internal circulation, or prohibiting it entirely if the exterior demand for specie increased the difference of its intrinsic value over the tax rate itself. Taking the consequence for the cause or the indication for evil, means were then sought to maintain foreign exchange at a high level ; without considering that that phenomen depends upon the conditions of commerce and production, which must be studied from their beginning in order to find a way of insuring a firm and genuine wealth which is reflected in that rise of exchange. This must not be the object of our preoccupations, but the true economic welfare, the sterling richness, the effectual accumulation of capital in the interior and its profitable circulation through national economy. Legislators and financiers, in seeking an adequate remedy against an evil they did not succeed in determining with precision, focused their attention upon the conditions of circulation and believing that there were defects in the monetary system, they altered it, the inefficacy of which soon became evident, because money always had to overcome the frontiers, when the economic strengfth was not sufli- cient to maintain it in the internal circulation. Silver money, a metal depreciated in the quotations of large markets and subject to considerable fluctuation, came to be substituted by pounds sterling. But it resulted that only these were to be maintained in circulation, as the blank money under the silver system, if economic conditions permitted it, and were issued, as that, when the unstable equilibrium existed. Not many years ago, in the Government and the Legislative Houses, the true cause of the evil was pointed out, showing how fallacious the statistical figures are when they are examined singly, without connection with their antecedents and concomitances. In many parliamentary documents there can now be observed that, when the mines or export industries in general, are exploited for the benefit of foreign companies, the country obtains very little profit from their success and fruitfulness. Have not these ideas spread sufficiently to make it high time to find a means of cutting short the evil, now known, and perfectly analyzed? The question is resumed in this program, simple in its enunciation, though very far-reaching: to nationalize mining exploitations. Considering the importance of this work, the means of realizing this must be sought and to that end the efforts of all men charged with safe-guardii^ Bolivian interests must be directed. To contribute to that purpose some contingent of initiative, I beg to submit for contemplation, an idea which I do not beUeve necessary to hand over as a definite project for official procedure, but which I disclose so that it may be utilized when the study of a new legislation is undertaken, which I regard as unavoidable, directed to maintain the product of mineral wealth within the country in a more important proportion than that represented today by salaries and taxes of exportation. The mining law of Bolivia is based on this principle: The undersoil is the property of the State. The latter, under pretext of owner of the undersoil adjudges ownership to individuals under the conditions stipulated by a large and complicated legislation. The State considers itself unfit to exploit mines on its own account and limits its action to encouraging and protecting the industry which individuals or associations actuate, importuning a profit to remunerate its initiatives, capital, risks and efforts. All the mining legislation is directed to that end and is g^ged to establish and guarantee the rights that come under its protection. liens on mining, which may either be privileges or rights to export products, are established not as remuneration to the State for the adjudgments tiiat it author- izes, but in virtue of the authority with which it sanctions all the other duties that BOLIVIA 109 must further its development. The adjudgments of mines are essentially gratui- tous. The State, although it demands resources to promote its action, does not seek its own wealth in 5ie mines, but that of the inhabitants, at the same time endeavoring to have their welfare redound to national profit. The practice of such liberal principles results unfavorably among us in a certain aspect. It is true that there are dangerous risks in the mining industry, the capital that is consumed without profit not being slight, after having been invested in unprofitable explorations, incomplete study annd fruitless experiments, it is certain that no other (industry) produces such prodigious results, the original capital contributed to the enterprise having been multiplied many times by tenths or hundredths. Meanwhile, it may be that the country does not offer safe and reassured inducements for investing within it the products obtained by mining success, or perhaps other motives induce the tradesmen to put the fruit of their labor in the exterior, the fact is that the capital issuing from that industry emi- grates in considerable quantity, causing the pernicious unstable equilibrium, in national economy, to which this chapter refers. To maintain within the country a greater quantity than remains under actual circumstances, originating from exportation of minerals, is a work incompatible with the present system of gratuitous adjudgments which encourage production, without the slightest precautionary measure to insure the return to the country, of the price obtained outside of it for the products of the industry. If the State, having declared itself a participant in the industrial issues, should make suitable rules, very different from those . that govern the mining adjudgments, it could retain within the country a considerable part of that wealth, which is ever ready to leave it; this would be assimilated in the interior and would serve to create new industries, the development of agriculture and cattle-raising; and the constant circulation of capital within national economy, would result in fecundating the fields of prosperity and opulence. Without undertaking to enumerate the rules to be established within that new system, which would effect a true transformation in Bolivian economy, I must only say that they would all have as a basis the participation of the State in the exploitation of the mines which may be adjudged in the future. Those that are owned and exploited at the present time, whose ownership is founded on rights existing previous to the new law, would continue being sub- ject to the system of free exploitation for the benefit of their owners, without other obligation with regard to the participation of the State, than that of paying the corresponding taxes. The entire new adjudgment would contain the condition that the State be participant in its profits, in a proportion varying according to the outcome of the enterprise. At first sight it seems as if that measure would present the danger of dis- couraging the mining enterprise, once a gratuitous and annoying partner must divide his profits equally. Nevertheless, there is nothing more inaccurate than this idea, above all if the law establishes the non-participation of the State in mines whose production may not reach the limit fixed by it. It must be taken into account that none of those miners, whom fortune pre- sented huge profits, disproportionate to the magnitude of their efforts and the amount of their capital, counted upon such favorable results in the beginning of their industrial labor. None of them would have failed to enforce the work which afterwards created immense wealth, if they had known beforehand that they were obligated by law to share one-fourth of their profits, for example, with the national treasury. , I intentionally avoid discussing this matter further, recommending its study to the men called upon because of their knowledge of political, social and legal matters, to undertake it with determination and patriotism. The thought of the administrative difficulties in winning must not discourage us, owing to fiscal participation in a number of private enterprises. The economic and financial result of the reform would compensate all sacrifices. Such is the sketch of the commercial arid economical condition of Bolivia, substantiating a notable progress obtained several years back beneath the shade of an inalterable public peace, encouraged by the national criterion toward prac- tical labor and the desire of honorable national governments, which, inspired by common welfare,^ have elevated the country by secure routes to a place making it worthy of credit and giving it a reputation of an honorable and respected nation. DOMINICAN REPUBIrie FOREIGiy' COMMERCE 1917 TOTAli * 39, 845,000. OTHER. COUNTRIES « 1T9,000 4 95,000. «T»AIK"- OTHER couwnaES NETJIERLAI 4162,000. , U.K.*206,000 SPAIK tZOB,006T^^' /34 A' ^A^£/f/CA/f div/O/^ BOLIVIA 111 both as to its own laws and the interests of its friendly countries. If with these properties and the wealth of its natural soil, Bolivia does not obtain the coopera- tion and initiative necessary for her growth in the commercial concert of South American nations, it would mean that destiny is inexorable in its injustice toward Bolivia, which merits the practical sympathies of its neighbors and other nations of the American and European continents. The moment has arrived, and this is the best opportunity to make known what we have in Bolivia, what we can produce, what we must do in favor of our progress and happiness and what we await of the strong nations, particularly on the part of the United States. We would ask that eyes be set upon Bolivia and that its conditions be studied carefully. Once we are known, we are sure that we shall be highly considered and that we will receive efficacious cooperation. A DIGEST OF COMMERCIAL CONDITIONS IN BOLIVIA. By Senor Alberto Palacios, Consul General of Bolivia at San Francisco. The rapid succession of events during the past few years — War, Peace, Reconstruction — has affected to a certain extent practically every country of the globe in accordance with the participation taken by each, viz : industrial strength and public wealth. The war developed resources heretofore unknown and re- vealed latent economic forces that existed, awakened individual initiative and stimulated genuises to produce, with the result that while in the battlefields of Europe the wealth of the Old Continent was destroyed at random, other coun- tries labored day and night to replace the losses and provide the Allied Nations with the necessary supplies in order to bring about success for their cause — meats from Australia, wheat from Argentina, Platinum from Colombia, furs from Alaska, gold from South Africa, and the rarest metals and delicious fruits of nature were requisitioned to be placed at the disposal of the Allied soldiers. The United States threw on the same side its inexhaustible supply of wealth and industrial organizations, thus with her greatness and military power virtually assuring the triumph of the Allied arms. Bolivia, a small nation situated in the heart of a continent, away from the general paths of communication, due to the fact that she was deprived of her own coast line, — situated in the highest regions of the Andean mountains, also did her modest share. Morally, breaking relations with the Imperial Teutonic Regime, under the aspect of economy, she placed at the disposition of the Allies the rich metals stored in her mountains, indispensable for the various uses of the war. She sent hundreds of thousands of tons of tin to can foodstuffs, the antimony used in all of the projectiles from the Berthas and Black Marias up to the sharp and diminutive shrapnels which rained from the machine guns; silver for monetary purposes, and the manufacture of fine surgical instruments; the tungsten used in the manufacturing of cannons; copper, bismuth, lead, mo- lybdenum, India rubber, alpaca wool, have been shipped to the English and American markets in appreciable quantities,' as it may be observed from the fol- lowing data taken from statistics of the year 1917: Tin valued at $34,103,392 Copper valued at 4,768,457 Antimony valued at 6,807,162 Tungsten valued at 4,324,116 Bismuth valued at 1,646,670 Silver valued at 2,108,764 Lead valued at 605,965 2inc valued at 212,312 Rubber valued at 6,169,680 Coca and Quinine valued at 354,253 Live Stock and Wool valued at 1,698,464 IK SECOND PAN AMERICAN COMMERCIAL CONFERENCE During the year 1918 the exportation of tin had risen to 50,000 tons val- ued at $51,844,400.00. A large portion of these products came to the United States, with which country trade has increased in a noticeable proportion; so much so, that while in 1914 it amounted only to $2,835,700, in 1918 it had reached ahnost $40,000,000; that is to say, fifteen times as much. The following data refers only to the trade carried through the ports of the Pacific, excluding commerce conducted through the ports of Argentina and Brazil : Importations from the United States via the Pacific during 1918: 52,735,326 kilos $9,161,144 Exportations to the United States, 36,796,012 kilos.... 22,600,400 If the contribution made by Bolivia is duly examined in connection with war requirements from 1914 to 1918 it will be found that she supplied 465,529 tons of minerals and other raw materials amounting to $200,000,000.00. The transition from wai* to peace has caused a delicate situation in Bolivia, in consequence of the demoralized business in buying centers. Suddenly the demand has become paralized, and shipments have been suspended, due to the accumulation of stocks by England and the United States, to such drastic extent as to prohibit the importation of tin. We have hopes that these steps will be maintained for only a short period, because if such action is intended to defend the fiscal interest of those countries, it must not be forgotten that discouraging the interests of countries like Bolivia, they disorganize her economical life, by which precedent, on reducing its productive capacity, they also weaken its pur- chasing power, which in the end mean that the harm would not only be suf- fered by the Bolivian miners, but equally by the American merchants who do business with them. From the moment that the exportation of our minerals became reduced, shipments from the United States automatically began to decrease. This refers particularly to the Pacific Coast, as it may be seen from the following data: During the past year there was shipped from San Francisco destined to Bolivia 29,551,728 kilos valued at $1,542,189.30 and from Seattle 10,583,965 kilos valued at $497,684.95, outside of other quantities from Los Angeles. Commencing with January of the present year, shipments have been reduced to an alarming extent, as is shown by the following insignificant figure : _ _ Exportation from San Francisco January to April inclusive, 453,159 Idlos, $84,993.38. . My above assertion to the eflfect that any restriction placed on the pur- chase of our products will carry as a consequence almost a total cancellation of the intercourse with the foreign markets, which act would not leave American commerce untouched, at the present moment when a plan of commercial ex- pansion is trying to be brought about, which procedure has been met with the good will and approval of the Southern Republics. This radical change can very well introduce doubts, that European com- petition will surely try to take advantage of, as they will be able to affirm that the increase of business with the United States was a temporary phenomenon due to the war, and that only the European markets, as in pre-war times, are capable of supplying the necessities of our economical and industrial life. The following articles are the principal ones exported by San Frjtacisco and Seattle: — Lumber, explosives for mining machinery, mineral oils, gasoline, steel cable, cement, rice, evaporated milk, canned fruits, fish and other merchandise; details of which may be found in the enclosed lists. Regarding lumber, I take this opportunity to point out the necessity of endeavoring to bring about an extensive business through a larger number of exporters, as actually those engaged in the exportation of this article are very few, for which reason the business consummated is of a limited amount. In the high plateaux, the most thickly populated parts of Bolivia, the lum- ber used for the frame work of the mines and work of construction is imported from California, and undoubtedly if they do not consume any more it is only due to the restriction above mentioned. However, if by initiating an extensive com- petitive campaign, placftig same Within, the l^ach of, miners, builders ild oth^ indteft-les, I'fs dmWUWption would Bfe nMeStrnfy incV^ed; tn^rfy WhW cettftW&c- BOLIVIA 113 tion materials manufactured in the Western part of the United States will find a ready market in Bolivia, if an attempt is made to introduce them on a larger scale. In many cities construction is active and I might state at a cost which did iiot prevail 10 years ago, whereas at the present time it is not rare to see a build- ing erected at a cost of one million Bolivian pesos. Fifteen years ago, a few lots situated on Avenida 16 De Julio La Paz, which all combined could have been purchased for one hundred . thousand Bolivian pesos, today would cost five mil- lion, to pay for the cost of buildings erected in the four blocks of this . avenue, in the neighborhood of which they have built pretty commodious homes. The material used is, in part, obtained in the country, the remainder being of foreign importation, such as lumber from California, paints and wall-paper, hardware and decorations from Germany. A much larger market could be found for ce- ment if it was possible to obtain cheaper freight rates, a problem which must be solved by the manufacturers, as this not only affects the Bolivian markets but affects as well all of the Western coast. San Francisco previously exported more or less eighteen million of flour kilos yearly, but no shipments have been made during the past two years, but it is hoped that as soon as all restrictions have been removed, the American flour will again find its way into the Bolivian mar- ket, even if in a smaller proportion, as this country is commencing to produce some for its own consumption, thanks to the completion of mills in the depart- ment Cochabaraba. , This new situation offers to the California millers an opportunity to in- vest their capital, establish mills and culitvate wheat, which capital would be welcome by the farmers of these valleys, who could very well associate themselves with the American capitalists looking forward to a greater success in the business. Should it prove of interest, we submit the following data, pertaining to this business : In 1916 the railroad to Cochabamba, the capital of ' the Department of the same name, was completed . at a cost of 14,000 pounds sterling per kilometer. It was constructed by English capitalists, under the name of the "Bolivian Railway Company," who were induced to construct it upon realizing the ready access it afforded to an almost unlimited stretch of land which was suitable for the cul- tivation of wheat, fruit and many other products. Cochabamba has an electric railroad of 80 kilometers extending through the valleys of Quillacollo and Arani. The climate is temperate and there is an abundance of water which could be used for irrigation purposes. Its altitude is 2S7S meters above the sea level. The area of the Department of Cochabaraba is 60,417 square kilometers. Until IS years ago the greater part of the flour consumed in Bolivia came ■from Goichabamba, but due to the old fashioned methods pursued^ it became cheaper, after the completion of the railroad to the_ Pacific Coast, to import for- eign flour and in consequence the national production decreased. It is a known fact that . flour produced in Bolivia is equal in quality to that imported from abroad and surely, it would be much cheaper, that is if modern mills could be erected, as the paying. of ocean freight, custom duties and all other expenses incurred in the importation of flour from abroad would be eliminated. Another factor which would bring doWn its cost is the cheapness of labor. It is probably unknown by a good many, but it is neVer the less a fact that the price of flour is so high in Bolivia that it is a luxuiy to most .' people. The potirer class —the Indians— can only afford it once or twice a week at the most. During the year 1916, outside of the flour produced in the country Bolivia imported flour to the amount of $1,500,000 weighing 25,000,000 kilos of which 18,000,000 valued at $1,140,000 were imported from the United States. Customs duties collected amounted to $135,530.00. Notwithstanding the prosperity brought about by the development of min- ing, the country has awakened to the realization that this industry is merely one of the factors of the public wealth ; therefore, without disregarding its import- ance efforts must now be encouraged toward the exploitation of our fertile lands, which are capable of yielding all the known agricultural products of the The manufacturers of agrjttiltural imtJ^ments will most, ass^redly fraid a tlittlrV market Ih BotlvTs, rftifl K I mentfdn thfe' future, it is becaiise it will be 114 SECOND PAN AMERICAN COMMERCIAL CONFERXNCE necessary first of all to carry on an extensive advertising campaign, and secondly to educate the people in the use of these implements, which procedure is well known to the American manufacturers. After having observed with very much interest the splendid results which were obtained through the annual exposition at Davis, California, I believe that the sending of a similar exposition to Bolivia, which would be in a position to tour the greater part of the country, would un- doubtedly bring about satisfactory results. Having spoken with several exhib- itors of tractors, they informed me that, notwithstanding the fact that the Amer- ican farmer has now become accustomed to the use of these modern implements, it was only brought about by the unrelenting efforts put forth by the manufac- turers in their attempts to point out the advantages that were to be found in the adoption of the tractor. When one takes into consideration the high cost and the fact that the farmer was so accustomed to working with horses, the difficulty under which the manufacturers were compelled to labor, in order to assure their universal adoption, cannot be too greatly magnified. Only by the active propaganda put forth by the Government in their de- sire to increase the crops and the publicity campaign made by the manufacturers followed by practical demonstrations, has it been possible to overcome these dif- ficulties. If this is the case in this country, it is logical to suppose that the. South American farmers will be more incredulous as to the advantages to be found in the use of such modern equipment. Catalogs, advertisements and circular letters will be of little importance if they are not backed up by practical demonstrations. From the above facts it has occurred to me that the organization of such an exposition would prove successful. The idea could be supported by some of the foreign trade associations in cooperation with the manufacturers who are directly interested, with the assurity that this method of advertising would bring forth the desired results, not only from a business standpoint but also from that of progress and education. It is not my intention to point out that this exposition should go only to Bolivia, but rather that it should tour all the Western republics, returning by way of the Atlantic. Neither would it be necessary to send a formal exposition, as it would be sufficient to send an adequate number of tractors which could be easily transported, together with their corresponding tools and implements. This system of demonstrating to the prospective purchaser the article that is being offered, even if it should be a heavy piece of machinery, is not a new procedure. The linotype monufacturers introduced it into South America in this manner, which method was followed due to the fact that the Germans were controlling this market with their tipographs. Give us the money to exploit our mines with modern machinery, money for the construction of th^ many railroad lines which we intend putting through, money for farming, barbed wire for fencing our grazing lands, even superior to those of Argentina, and then the American investor, manufacturer and merchant will have opened a new "market." In the South American republics "commerce" means to finance to the necessary extent their requirements, take from here the surplus coin to exploit the natural resources extensively found there. Both fac- tors united would produce millions, the same as were produced in the Western part of the United States, as it has been proven that the phenomenal develop- ment of the West was not due to the discovery of gold in California, but rather to the millions invested by Wall Street. Speaking about Bolivia, I have heard that notwithstanding her 700,000 square miles, scarcely populated by 3,000,000 people, of which SO per cent, are Indians, there are numerous difficulties presented which would hinder the develop- tnent of the country. Protesting against this, as an example, I only wish to men- tion the South African Union, where due to the similarity of various circum- stances, one finds a good example of what could be done in Bolivia. The coun- tries which form this Union possess an extensive territory of over 500,000 square miles, with a population of only 5,500,000, of which only 1,200,000 are whites, controlling about 4,000,000 colrired people. Even under such conditions, they have attained a high degree of prosperity which is revealed by the following data: Their commerce before the war amounted to ^00,000,000, their estimated expenditures $50,OD'0,000, and their debt $550,000,060. The railroad lines had BOLIVIA 115 an extension of 7000 miles. However, it is impossible to forget that the enter- prising spirit of the Boer, to a great extent, is responsible for this attractive success, but also it should be accepted that the natives of South Africa cannot he compared with the Bolivian Indian, whose thriftiness, physical strength and agreeable disposition makes of him a desirable element; they supply all labor re- quiredvby the mines, farms and railroads of the country. Mr. John Jackson, builder of the railroad line from Arica to La Paz, at the time when he made delivery of this line, officially stated that after having constructed several colonial lines, he was of the opinon that never before during his long experience, had he met with better laborers. Mr. Victor M. Coster, American traveller, wrote from Bolivia to a New York magazine, making the following statement : "The Indians form an ideal working class ; they are sober, hard-working and adapt themselves easily to all kinds of work and manufacture." In these modern times, when the most delicate products are transported from one continent to another, such as fruits and meats from Australia to Eng- land over a distance of 12,000 miles ; apples from Canada to Europe ; peaches and plums overland from California to New York, — there is no reason why it should not be possible to import from Bolivia a variety of foodstuffs, whose superior quality can only be obtained there. Allow me to mention our potatoes. The quality produced in the United States is indeed very good and the variety is extensive, but never will it be possible to compare them with the Bolivian product, whose nourishing power is greater, flavor is better, and the varieties more numerous. 184 different va- rieties have been classified, which are being at present, cultivated in different regions, from an altitude of 13,000 feet over the sea level, down to 6000 feet. Potato raising, if conducted under modern methods and in a conservative manner, would place us in a position to immediately export the product to the countries bounding us, viz : Argentina and Brazil, where, notwithstanding that the product is raised, it is not of the same quality. Another commodity which may be exported in the future is "quinua," this being a cereal raised in the Andean heights and regarding which the learned Calif ornian, Mr. Burbank, said the following: "This plant has been under cul- tivation and close observation in my farms for ten years or more, and has been greatly improved by a selection; a more delicious breakfast food was never of- fered to America." I had the pleasure of personally meeting this gentleman, who upon confirming his opinion, stated that this grain is subject to be attacked by aphides when raised in the lower altitudes, but this would not be the case in the high regions of the Bolivian Andes, where besides a better and more con- sistent product is obtainable. I also wish to take up the matter of maritime shipping from the American Pacific Coast to South American ports. Exporters, the Chamber of Commerce, and newspapers in general are constantly complaining about the lack of tonnage and poor passenger service when compared with Eastern facilities available to Eastern markets, and which places this Western Coast in a most disad- vantageous position when competition has to be met, consequently limiting their possibilities for development of trade throughout Ecuador, Bolivia and Chile. In support of my statement, I would point out that the only direct line of steamers plying between ports in the said territories, is a Japanese line, and therefore the American traveller is compelled to use the steamer of a com- petitive country when it becomes necessary for him to take direct passages. There is a strong desire to better such an unsatisfactory state of affairs on this Coast, and I am glad to say that prospects are encouraging for the near future. At a meeting held on the 22nd of this month in the Foreign Trade Club, to which the Consuls of Argentina, Mexico, Chile and Bolivia were kindly invited, it was announced that the Rolph Navigation Company had decided to start immediately the operation of a direct steamship line which would not only go as far as Chile, but even as far as to the Argentine Republic, making the voy- age around the Cape. Summing up, the increase of intercourse with the U. S. A. will depend upon the interest taken in the development of the vast natural resources of Bo- livia, which can only be done by the investment of the capital necessary to ex- ploit our unlimited natural wealth, and I must state once more that in order to secure a satisfactory increase of our commerce, it is imperative that due finan- cing should be taken into ■ consideration in this country. 116 SEC»ND PAN AMERICAN COMMERCIAL CONFERENCE BRAZIL WHAT BRAZIL BUYS AND SELLS By Senhor Th. Langgaard de Menezes, Attache of the Brazilian Embassy, Commercial Agent in the United States of the Ministry of AcRf- cuLTURE, Industry and Commerce of Brazil. (Read at the Morning Session of Tuesday, June 3) Before coming to this Conference I refreshed my -memory of Brazilian commercial statistics by reference to a publication issued by the Ministry of Ag- riculture, Industry and Commerce, which I have the honor to represent in the United States as Commercial Agent. The title of this publication is "What Bra- zil Buys and Sells;" and I mention it here because, in my opinion, it expresses the fundamental idea on which we Brazilians seek to base our international trade relations. We realize in Brazil that foreign commerce is a matter of international cooperation, of give and take. We are anxious to sell our goods to other coun- tries, but we are equally desirous to buy those things which others can produce at less cost than we. Therefore, our Ministry of Commerce has taken great pains to collect and publish information that will assist the business men of other coun- tries, whether they buy or sell. We Brazilians believe that we are on the threshold of great commercial ex- pansion. Our business men are wide awake to the new opportunities created by the war and the peace settlement now being arranged. Whereas, before the war, we looked for capital and for trade chiefly, across the Atlantic, now our chief opportunities lie nearer home, in the New World. Territorially Brazil is going through a stage of progress familiar to the people of the United States. Behind the well settled area and the great cities along our coast lie millions of acres of undeveloped forest and plain. Our young men, like yours of two or three generations ago, as Horace Greeley told your young men 60 years ago, are beginning to go west. To utilize the extraordinary resources of our interior we need capital. Europe will be in no position to help for many years to come. We must look for the cooperation of the United States. But we know that the investment of American capital must go hand in hand with the development of our North American commerce. Brazil has one product in particular which the United States desires and must have — coffee. If I were asked to enumerate Brazil's contributions to the Victory of the Allies I should place coffee neat the head of the list. I wonder if you realize the important part our national bt.erage played in the war. The men who wore the khaki of Uncle Sam consumed nearly a hundred million pounds of it. I have seen it stated that one day's coffee ration for a single division of the American Army of Occupation in Germany amounts to 2,500 pounds. Those boys get four or five cups of it a day. Of course, even a Brazilian would not attribute their valor wholly to these coffee rations, but the fact speaks for itself — the American Army drank more coffee, more real coffee, than all the other Allied Armies combined — and how they could fight! In coffee growing Brazil leads the world and it seems to me that we dis- play sound business judgment in making this product the basis of our first or- ganized effort since the signing of the armistice, to stimulate foreign trade. Since I came a month ago from S. Paulo, the State which grows and ex- ports two-thirds of the world's coffee crop, perhaps I can make no better use of part of my time than to tell you something of what the coffee planters of Sao Paulo have done, and are doing, to increase the interest of their best customer, the -United States. In this country, I have heard advertising referred to as "the soul of business." Well, the coffee growers of Sao Paulo are trying to put more of this kind of "soul" into their business. They have provided for a fund of one mil- lion dollars to be spent during the next four years in advertising in the United States — not any particular kind or brand of coffee — just coffee. The money comes from a tax on all coffee grown in Sao Paulo; and it will give you some concep- BKAZIL 117 tion of the immensity of our coffee crop when I tell you that this miUion-dollar fund represents only about one sixty-sixth of a cent in each pound exported from that State. I have called the attention of this Commercial Conference to the Brazilian coffee campaign because it singularly demonstrates the increasing good will be- tween the business men of the two countries. The administration of this million-dollar advertising fund has been en- trusted to a committee of coffee roasters and distributors residing in and citizens of the United States. I know of no more conspicuous and satifactory example of international teamwork. But I would not have you think that Brazil is by any means a one-prod- uct country. Her vast arable territory with its diversity of altitude, climate and soil furnishes unbounded possibilities for a variety of crops and industries. We have taken advantages of the many economic opportunities presented by the war, to develop not only our plantations but our mines and our factories. The exportation of minerals has increased since 1913 more than six fold. In March of last year the Government encouraged the manufacture of steel and iron and stimulated mining by some noteworthy special favor decrees. For example, we grant loans up to the sum of the capital of installation on iron and steel fac- tories, showing a minimum daily output of twenty tons. We will arrange with railways and steamship lines for minimum freight rates on pig iron and steel produced in national factories, as well as for apparatus, machinery and material for the upkeep of such factories. We stand ready to construct small branch railways necessary for the transportation of their raw material and products. Speaking of products essential to both war and peace, I must not forget our great staple, rubber. During the fiscal year ending June, 1918, the exportation of Brazilian rubber to the United States amounted to 41,277,914 pounds. In November, 1914, we began the exportation of chilled and frozen meats. This industry has been developed with amazing success. The total value of these exports rose from $301 in 1914, to more than $15,000,000 in 1917, the last year for which figures are available, while the total export value of all animal products in that year, rose to $56,320,000, as compared with $18,835,000 in 1913. Had I time I might speak of our tobacco industry, of sugar, beans, rice, manganese, cotton and woods. The mere cataloguing of these products should serve to demonstrate the variety of our resources and the opportunities awaiting investors. The unprecedented growth of our trade with the United States is shown by the fact that exports from Brazil to that country have increased since 1913 more than thirty-three per cent., while imports from the United States have increased one hundred per cent. In short, the United States is the chief gainer in the readjustment of trade caused by the severance of relations with Germany, from which country we purchased in 1913 goods valued at more than $58,000,000. In closing, I wish to say that, next to capital for the development of our immense potential wealth, Brazil needs improved means of transportation for her foreign trade. So far as Sao Paulo is concerned we are well equipped with rail- roads. Facilities for getting our products to the coast are excellent. If nec- essary, the railroads into Santos, the world's greatest coffee port, could run a coffee train every ten minutes day and night for weeks at a time. What Brazil wants is ships. Increase in business with the other American Republics is largely a problem of transportation. We are the only country in the world with a waterway by which vessels of ocean draft — ^22 or 23 feet — can steam 2,200 miles into the interior. We have 5,000 miles of rivers awaiting vessels of such draft. The Amazon valley offers 20^000 miles of rivers navigable for trade. , The period of German exploitation in Brazil is over, never to return. We are looking to the United States for men and money, and we stand ready to give value for value received. PROSPECTS OF THE VEGETABLE OIL INDUSTRY By SEajHOR Jose Custodio Alves de Lima, Brazilian Constsl General at Large AND Inspector of the Consulates of Brazil in North America and Asia. A bond of union between the United States of America and the United States of Brazil, which has been my earnest wish for almost four years, prompts ECUADOR rOREIGK G0MMERGE 19ir TOTAIi ♦ 26.486,000. fkl\/ AMElflCAAf C/MOAf BKAzn, 121 the Minister of the Treasury, so as to avoid the importation of material intended for other purposes. 6. The authority vested with the Brazilian Government to adopt a pref- erential tariff is still in force for one or two more classes of foreign products, with the power to reduce same to the extent of 20 per cent, a limit which,_ in case of wheat flour, may be reduced as low as 30 per cent in case such concessions are met by concessions made to Brazilian products, especially in tobacco and rubber. 7. The Brazilian Government is still authorized to cooperate with the Brazilian States in solving the problems of the home industry, having the power, among others, to modify the export tax on rubber collected by the Federal Gov- ernment. 8. Exempt from all duty: The necessary raw material for the building of ships, aeroplanes and automobiles. 9. Free entry into the territory of Brazil, independent of any fiscal meas- ures, cattle of any species intended for breeding and fattening purposes, there remaining in force solely the duty on cattle for slaughtering purposes. 10. Coal and petroleum, when imported as fuel, shall pay a 2 per cent tax, according to the circular of the Minister of the Treasury, No. 73, October 11, 1916. 11. Exempted from import duties and clearing charges : Machinery and accessories intended for exploration, exploitation, moulding, pulverization and preparation of mineral coal; as well as machinery, accessories and materials in- tended- for the preparation and use of the by-products and transformation of coal mine products by river, land and sea. 12. Exempt from duty, including clearing charges: Raw petroleum in- tended for agricultural machines. 13. The Government is authorized to grant exemption of duties and clear- ing charges for ten years to shipyards built under the terms of the present law. 14. Exempt from any import duty and clearing charges : Barbed and smooth wire intended for fences and inclosures in the agricultural districts and railroad properties. 15. The Brazilian Government is empowered to make agreements, pacts or treaties with friendly nations with the view of better regulating and protecting the rights and interests of industry, commerce and finance, stipulating and agree- ing to reciprocal obligations and advantages, all dependent on the approval of the national Congress, inasmuch as that comes within its jurisdiction. It is a great satisfaction that these important measures should have been adopted in my own country, Brazil, in the last two years for the expansion of the trade abroad and particularly with the United States of America. BRAZIL'S TRADE WITH THE UNITED STATES DURING THE WAR By Senhor Sebastiao Sampaio, Consul of Brazil in St. Louis. (Read at the Morning Session of Tuesday, June 3) Ladies and Gentlemen: I have been just seven months in the United States. I do not speak English, not yet. But I must obey, I must speak today here and I have confidence in your good will. I will use my five minutes to show you with numbers from American Offi- cial Statistics that the trade between the United States and Brazil during the last five years was and is the most progressive trade not only of America but of all the world. Business, exports and imports included, between the United States and Latin America increased 60 per cent. But business between Brazil and the United States alone increased, not 60 per cent., but 160 per cent. I do not know of another example of such an increase in trade. Brazilian exports to the United States increased more than SO per cent, and Brazilian im- ports more than 100 per cent. This increase is more interesting for our consideration because Brazilian coffee (70 per cent, of Brazilian exports before the war) decreased to 40 per tent, during the war. We did not help the allies only with our navy in the North Sea, or with our military surgeons and aviators in France, or with our one-half 122 SECOND PAN AMERICAN COMMERCIAL CONFERENCE a million tons of merchant marine given to the allies, -or with our friendship. We also improvised tremendous new industries in Brazil, like beef to help the allies with food, like manganese — all the manganese which you asked for the needs of your steel manufacturing during the war. ; Now, I remember that our biggest increase in the trade with the United States was the imports from your country. Our figures increased each year. In 1916 Brazil alone imported more from the United States than all the River Plate Republics. Argentina, Uruguay, Paraguay and Venezuela, imported to- gether from the United States $92,500,000. Brazil alone imported from the United States $101,000,000. In 1918, the year of the biggest restrictions of tonnage during the war, almost no ships from the United States to Brazil. Of course, your ex- ports to my country decreased SO per cent. But in 1919, with more ships every day, you got again the same situation of 1917. I finish with the last official numbers of Washington statistics, about April, 1919, one month ago. In April, 1918, Brazil imported from the United States $5,000,000. Last April, one month ago, Brazil imported $13,000,000 of your prod- ucts. All of South America imported $29,000,000, of which Brazil imported $13,- 000,000, almost one half of that amount. TRADING IN BRAZIL By Leon N. Bensabat, Manufacturers Agent and Importer^ Rio de Janeiro (Read at the Evening Session of Thursday, June 5) Ladies and Gentleman: It affords me great pleasure to say a few words to you in regard to Brazil, that wonderful country, that stretches majestically and ' almost interminably in the South American Continent. I have been established, in the beautiful Capital of Rio de Janeiro for over twelve consecutive years as manufacturers' agent and importer and I am now on one of my periodical visits to my folks and business friends here. You have already heard the unusually interesting address of Mr. Sebastiao Sampaio, the bright and active Brazilian Consul in St. Louis, and that of Mr. Theodore Langard de Menezes, the sound expert and live commercial wire attached to the Brazilian Embassy. Both gen-, tlemen impressed me as being too sober in their statements and altogether too modest and moderate in dealing with the unlimited resources and unequalled opportunities of their vast Country. The war wrought some radical changes in most countries but Brazil is undeniably the one country that has derived the greatest and fullest benefit from the World's War. What the Brazilians have accomplished during the darkest four years in human history is simply amazing. Coffee and rubber, rubber and coffee were, prior to the war, the, so-to-speak, main products of Brazil; they constituted its almost exclusive resources and stood as the back-bone of its whole economical life. The constant efforts and energies oi the whole Brazilian Nation were actually directed and centered solely into those two divine mannas when the war broke out. The larger part of the European markets was suddenly shut off, and whatever shipping tonnage there was to carry these two commodities into such markets as were still open and able to buy, shrunk almost daily to an alarming extent. Brazil was then face to face with the most terrific crisis ever recorded in its history; industrial, commercial and financial crisis. Desolated Europe could not help and the United States had their hands full helping the champions of liberty and the heroic defenders of modern civilization ruthlessly outraged and trampled upon by the fiercest enemy of mankind. A miracle — yes, a miracle only could have saved Brazil and the miracle took place. It emerged from the very roots of Brazilianism, from the vital fibre of the young Brazilian Nation. • Brazilian officials, having the welfare of their country at heart, sounded the alarm. A wide aggressive campaign was soon mapped out and rapidly set on foot. New depart- ments were created, technical men in farming, agriculture and cattle breeding were summoned and entrusted with what seemed to be a superhuman job. Failure in carrying out the wise policy of the Government would have spelled disaster to the Brazilian Nation — success would have meant material help to the Allies and unbound prosperity for Brazil. There was no other alternative for the Brazilians but to succeed. In less than one year the "two-product" country, the coffee and rubber land "'par excellence" developed like magic into a magnificently BRAZIL 123 rich country of cereals such as rice, mandioca, black beans, etc. The production of sugar cane, cotton, herve-matte, cocoa, tobacco, hides and wool also received a vigorous impulse and the results proved most gratifying, exports of all these products having increased manifold during the last two years, as you can readily see by recent statistics. The exploitation of timber, another big resource of Brazil, was likewise promoted and a beautiful income derived from the timber trade. Brazil possesses unquestionably the wealthiest forests of precious timber in the world. Not any- where can be found a harder and finer wood for general construction and ship- building, for highgrade furniture, etc. Gold, iron, coal, manganese, all sorts of precious stones, are also to be found in Brazil and the exploitation of these valuable minerals is being actively pushed, good returns being already apparent. Medicinal plants in great variety also constitute another source of wealth still lying idle in the exhuberant Brazilian forests bathed by the Amazon and the Parana Rivers and their tributaries. Yet, of all the recent achievements of Brazil as a result of the Great War, the meat industry is one of which they feel most justly proud. The possibilities in this new field have not been overlooked in this country. Armour and Com- pany, Swift and Company and other Chicago Packing Houses are already estab- lished in Rio de Janeiro, S. Paulo and Rio Grande. Their hams prepared and packed according to American improved methods are favorably looked upon by the Brazilian public and they are gradually replacing the famous English York hams which sell at a higher price owing to import duty. _ The Honorable William C. Redfield, Secretary of Commerce, expressed some surprise the other day, when addressing this conference, at the fact that the South American markets do not seem to consume enough of some of our goods which are "cheap and palatable." I presume he referred to canned meats or canned fruits. The duties for both in Brazil are comparatively high and the reason will be easily explained by the fact that canned meats are now manufactured on a fairly large scale in Southern Brazil and a large variety of fruit preserves all over the Country. We should not, however, forget that we enjoy a preferential rate of duty on many articles. American flour is allowed a reduction of 30 per cent and the following goods enjoy a reduction of 20 per cent. : Typewriters, scales, ice boxes, cement, corsets, dried fruits, condensed milk, rubber sundries, school furniture, windmills, piaiios, watches, office desks, paints and varnishes. More items could be added from time to time to the above list by making mutual concessions. The matter requires close study and consideration on both sides. The rough sketch I have just laid before you regarding such Brazilian resources now being exploited with wonderful success and many other resources still undeveloped, the wonderful result attained during the last two years by our sturdy Brazilian friends with no other means but their own, are sufficiently elo- quent facts which speak for themselves. If I may express my opinion, as an American, based on twelve years' experience of Brazil and the BraziHans, I would say that I know of no better country than Brazil for the investment of American capital. That the Brazilians are true friends of ours nobody will question, their friendly relations with the United States can be traced as far back as the Empire. Brazil's Chancellor, the late Barao do Rio Branco is credited with saying that the reason for the perfect understanding that existed at all times between the United States and Brazil lies in the fact that they are the only two countries in the American Continent that speak a different language. If this statement were true, it would be but a humorous way of his asserting once more Brazil's tra- ditional friendship towards the United States. The adoption of our Thanksgiving Day and our Fourth of July as legal Brazilian Holidays and the high significance attached to such an act would suffice to dispel any doubts in the most obdurate mind as to the extent and the sincerity of the feelings of the Brazilian Nation toward America. Under such auspices, dealing with Brazilians ought to be a pleasure. It is so with me and with hundreds of Americans doing a thriving business in Brazil. Mutual esteem and confidence preside over our deals. We know exactly what the Brazilian requirements are and have no trouble in meeting them. We give ample credit to our customers and extend to them terms consistent with prices. The Brazilian merchant of today, I mean the good and reliable merchant worthy of our attention does no longer expect the old German terms of six, nine and twelve months and he in turn has discontinued similar facilities to his out-of-town 124 SECOND PAN AMERICAN COMMERCIAL CONFEIENCE customers. Thus the question of terms was automatically adjusted. The Brazilian merchant is prepared to deal on the basis of a hundred and twenty days and in fact has been doing business on that basis for a number of years. This statement of mine can be easily vouched for by all commission and export houses in this country and in England and France as well. What may have irritated most the Brazilians and even some of us Americans established abroad, is the unwarranted aittitude of a few American manufacturers — doubtless war mushrooms — who exacted cash with order and often withheld for several months the cash received in advance alleging inability to fill order promptly owing to war restrictions. Such are, however, anomalies, bitter fruit of the great war, likely to never occur again. The Brazilians who were the first to side with us in the deadly struggle and who threw in their lot with us prior to a formal declaration of war to Germany, are broadminded enough to understand the situa- tion and I may assure you that it will be through no fault of theirs that we will lose the valuable trade that we have brought home in the last four years. It will be up to the American manufacturer to deliver the goods exactly as they are wanted, rather than indulge in idle advice as to what he deems our Brazilian friends should want. If he means to cover the Brazilian market he should do so with the firm and honest intention of sticking to it permanently and cease to regard it as a nice "fill in" for the dull season. I would strongly recommend catalogues, price lists and correspondence in Portugese, the oiBcial language of Brazil, and not in English or Spanish as is often the case. Brazilians are justly entitled to such a deference and their trade with us is already valuable enough to warrant the printing of catalogues in Portugese. I would also suggest to some manufacturers to discontinue that obsolete system of discounts consisting of something like this : SO-15-10 and 5 per cent. — 20-30-S-lO and 3 per cent. Get the trade used to net prices for time and cash payment. These little details, trifling as they may seem, deserve serious attention on the part of manufacturers. Nothing is any too big or any too small if the business structure that we are about to erect is to be solid and of long duration. Manufacturers of specialties requiring detail, publicity and propaganda work must be prepared to make liberal allowances for such important a factor in their business. While they spend freely in this country in advertising their wares they generally expect their agents in foreign lands to perform wonders with insignifi- cant amounts. The practice of working up the 'ads' at this end in the language of the country for which they are intended should also be discontinued. The man on the spot is in a far better position to decide in such matters. Last, but not least, manufacturers must not attempt to enter the Brazilian market without first causing their trade marks to be regTstered. The laws govern- ing trade marks in Brazil are somewhat different from ours and many a sad and costly experience will be avoided by complying with such laws. In this connec- tion I will strongly recommend Mr. Richard P. Momsen, the only American Attor- ney in Brazil, Ex-American Consul in Rio and fully conversant with registration laws in that country. Before closing, I am afraid I have gone much further than anticipated, let me say two words to you in behalf of the American Chamber of Commerce for Brazil, of which I am a member, and delegate to this Conference. Born in the middle of 1916, under the auspices of the American Ambassador to Brazil, the Honorable Edwin V. Morgan and the late American Consul in Rio de Janeiro, Mr. A. L. Moreau Gottschalk, the American Chamber of Commerce for Brazil has proven quite an important factor in the promotion of trade relations between the United States and Bazil. However, owing to its limited number of members, its resources have fallen way below the requirements of the big job it has undertaken. The Brazilian American Trade Review, which is the Official organ of the Cham- ber, will surely be read with keen interest by all those who already have, or con- template having trade connections with Brazil. The subscription price per year is $5.00. It would be most advisable that manufacturers in this country in some way or other connected with Brazil should become members of the American Chamber of Commerce for Brazil, located at the beautiful Capital of Rio de Janeiro. The benefits to be derived from membership of that institution are obvious and hardly need any comments on my part. It will give me much pleasure to furnish further information to interested parties in regard to our Chamber. I am likewise at the disposal of the members of this conference for whatever information they may require in regard to great, fascinating Brazil; agricultural, industrial and commercial. BRAZIL THE LAND OF OPPORTUNITY 125 By J, DE SlQUEIRA COUTINHO, C. E., ScD., OF PAN AMERICAN UNION STAFF. To properly discuss the opportunities of the Republic of Brazil, with its great natural wealth and excellent and varied climates, free today from so-called tropical diseases, and containing vast areas of exceedingly fertile lands, easily reached by vessels from both the Old and the New World, it would be necessary to write a book of no mean proportions, instead of a brief paper, as this must neces- sarily be, for presentation to the consideration of a commercial conference. At the present time the United States enjoys a large part of Brazilian trade, inasmuch as nearly 40 per cent of the foreign commerce of that country is carried on with the United States. Tlhere are two ways of augmenting this trade : First, by cooperating with Brazilians in the exploitation of the national resources of the Republic, increasing thereby the wealth of the nation and enabling the ability of her people to consume merchandise to grow in direct proportion to the amount of her national exports. With an increase of United States enterprise in Brazil and the employment of North American capital and methods, as well as Brazilian labor and natural resources, all new trade arising therefrom will be diverted to the United States, and because of the new and improved facilities which will be offered, a considerable part of the old trade with other countries will probably be directed to the United States without the exertion of any special effort to obtain it. Second, by competing with other nations engaged in trade with Brazil, and by offering importers and others better advantages and greater facilities in order to secure their patronage. Bearing this in mind, it will be necessary, therefore, for United States exporters to prepare themselves for special competition in this new and promising field. In order to obtain a clear and concise idea of the possibilities of Brazil and the vast field offered for United States enterprise, let us analyze the imports of that country, as compared with other Latin American countries, during the years 1900, 1910, 1913, 1916 and 1917. BRAZIL. Year. Imports. 1900. $161,250,000 1910 180,000,000 1913 ,.. 326,500,000 1916 196,195,000 1917 !•• 216,317,000 URUGUAY. 1900 $23,978,206 1910 40,814,161 1913 i.. 50,352,901 1916 , 35,280,801 1917 37,212,231 ARGENTINA. 1900 $101,348,068 1910 - 335,178,656 1913 408,711,966 1916 210,887,042 1917 178,933,037 CUBA. 1900 $70,079,214 1910 A 103,466,000 1913 1 135,810.000 1916 , 201,024,000 1917 261,377,000 In Cuba, where the greater part of the foreign commerce is with the United States, North American investments and enterprise made possible the rise in imports per capita from $44.30 in 1900 to $104.00 in 1917. If United States investments and enterprise were carried to Brazil on a large scale, in addition to handsome profits Exports. Import per capita. $212,620,000 $9.50 235,000,000 9.00 318,000,000 13.00 274,400,000 7.50 305,260,000 9.00 $29,442,205 40,935,638 44,926,873 73,290,671 92,516,274 $22.00 38,00 40,00 24.00 26.00 $139,460,000 358,268,000 468,999,410 527,045,463 533,664,948 $22.40 55.00 55.00 26.50 21.00 $51,342,336 114,039,000 165,208.000 336,801,000 357,040,000 $44.30 50.00 56.00 78.00 104.00 126 SECOND PAN AMERICAN COMMERCIAL CONFERENCE to American capital, it would not be at all surprising to see in a couple of years the imports of that country per capita rise from $9.00 to $30.00, or more than three times what they now are. This means that Brazil could import froih the United States merchandise aggregating a value of over half a billion dollars, or as much as all the other republics of Latin America combined and more than double that of the other_ South American countries. It is my object to call your attention to this particular fact, and I shall be very glad to assist anyone in his studies, through the Pan American Union, in realizing the tremendous opportunities Brazil offers to the efforts and capital of responsible people. Brazil, as is true of many other countries of South America, is in urgent need of better transportation facilities, and I call your attention to the extraordinary river system of that Republic, where over 100,000 miles of fluvial waterways can be utilized for transportation purposes. As soon as a regular service of river boats is established on Brazilian streams new activities will spring up along their banks, where now but little or no cultivation exists for the reason that settlers have no facilities for exporting their products. As a complement to river navigation it is most important that' a system of railroads be constructed. The Brazilian Government has been most liberal in granting concessions for railroads, and railroads are excellent investments in Brazil. If Brazil were properly served by rail and river transportation facilities it could today, with its thirty million inhabitants, undoubtedly feed half the world. The problem of transportation is a fundamental and difBdult one. Neverthe- less, Brazil will have the railroads she may need for its development, together with increased facilities for fluvial traffic. The burning question of the moment is to know who will undertake the task, whether it will be United States capitalists or capitalists of some other country. If United States interests are going to take the leading part in this work, undoubtedly the bulk of the new trade arising therefrom will go to the United States. Otherwise the share of our country in this prospective commerce will be more limited. A detailed investigation of several Brazilian problems, which I had the oppor- tunity to study as a professional man prior to the great war, gave me a much more vivid insight into the potentialities and possibilities of Brazil than that which the figures referred to in the foregoing conveyed to my mind. I am sorry that lack of space prevents me from stating in detail a mass of available information which would better illustrate this subject. Referring especially to the trade possibilities of the Republic of Brazil there are several points which North American business interests should always keep in mind. The principal ones of these may be mentioned as follows: 1. That. Brazil is doing its best to increase its commerce with the United States, and that a great number of articles of North American manufacture enjoy special reduction concessions in the import tariff and that these advantages have been excliisively conferred upon American products, thereby giving them a special point of advantage in comparison with similar merchandise offered by their com- petitors. 2. American manufactured products are generally of good quality, and when they are in accord with instructions given by customers they are well accepted in Brazil. 3. United States exporters should not fail to bear in mind that in order to handle an extensive trade with Btazil they must use as a medium of communica- tion the Portuguese language and give weights and measures in the metric system. Furthermore, they should be careful in preparing consular documents covering ex- ports to Brazil and should dispense with the unpopjular custom of forwarding shipping documents attached to draft, sending same instead direct to the consignee. 4. United States exporters should endeavor to get better acquainted with their Brazilian customers, as well as their customs, commercial traditions, ways and business ethics resulting from^ the ethnic evolution of the people who have been living in that country for centuries, and who are not disposed to change their ways to conform to the interests of any other nation. The exporter should always try to meet the point of view of the customer and follow instructions concerning the minutest details of export orders. 5. United States exporters and marfufacturers should occasionally visit Brazil personally and should always send to that country gentlemanly and proper equipped salesmen. A thorough acquaintance with the producing and consuming BRAZIL 127 markets will be of the greatest assistance in building up permanent and growing trade relations between the two countries. After a firm is equipped with a competent personnel for trading with Brazil, ill addition to catalogues and circulars in the Portuguese language, it should be willing to offer good terms and to do its best to capture Brazilian business. Even after all this is accomplished there are still a number of questions to be considered. One of these is the quality of the goods preferred by Brazilian markets. Generally speaking, Brazilian customers prefer merchandise of a high grade, inasmuch as the Brazilian Government collects high tariff duties. The difference in price between high and low grade merchandise which at the factory amounts to, say 25 per cent, would be reduced on high grade goods, after coming into the possession of the retail dealer, to approximately 10 per cent or less on what he woluld have to pay on low grade merchandise, because both qualities of goods are subject to the payment of the same customs duties, freight charges, etc. Another point to which the attention of United States exporters should be called is the way in which consular invoices are to be filled out to prevent the im- porter in Brazil fronj being liable to the payment of heavy fines. If the exporter makes false declarations as to the cost of the merchandise, freight and other ex- penses to Brazil, the importer will be fined in an amount equal to that of the invoice and the value fixed on the goods by the customs authorities. If the false declaration refers to the class, kind or weight, the importer is subject to fine. If the consignee in Brazil fails to produce the consular invoice he wiU be required to pay double dtuties. Anyone contemplating going as a salesman to Brazil, or in doing business there, should have, in addition to a knowledge of the Portuguese language, a sincere desire to identify himself with the country and to fraternize and associate with those with whom he has to do business. The customs and ways of the people of the United States are different from those of any other country, while Brazilian customs are entirely Latin and similar to those of European countries. In my travels in Brazil I found that the European salesmen easily identified themselves with Brazilians, and that those from the United States did not so readily adapt themselves to the new conditions, inasmuch as they seemed to conform with difficulty to the ciistoms of the country. As soon as one tries to identify himself with Lktin ideals of life, he will find that it is a delight to travel in BrsKil. Brazilians are exceedingly courteous and they find their methods are more efficient at home than the same method of procedure would be if practiced in the United States. The same thing happens to North Americans when they go to Brazil, where, in their judgment, things seem to move slowly. I, myself, found things as easily managed in Brazil as in the United States. In bpth countries the efficiency is very great, although the methods are different. The principal ports of Brazil are served by excellent steamers of the Lloyd Brasileiro and Companhia Costeira. There are weekly sailings from most of the ports, and between the several ports one may find even a daily service. In the south of Brazil railroads, which are generally good, may be used. Traveling on Brazilian ship,s is very comfortable. The service is generally excellent. The officers are kind, the' stewards attentive, and the meals, served Brazilian style, are elab- erate and good. The bar is good and is generally too liberally patronized by Amer- ican and British travelers. Any intelligent salesman can get a great deal of useful information from the captain and officers of Brazilian vessels who are glad to avoid frivolous talk and to discuss usefbl problems. In the cities American travelers will always find great assistance in the Chambers of Commerce, American consulates and in the proper bureaus of Govern- ment departments. In all the large towns, such as Manaos, Belem (Para), Per- nambuco, Bahia, Rio de Janeiro, Bello Horizonte, Santos, Sao Paulo, and Porto Alegre, the traveler will find excellent hotels at moderate rates. Everywhere the American plan is in vogue, and the prices vary from $3 to $5 per day. The con- veniences in these hotels are the same as those obtaining in Europe, and the meals are good but somewhat elaborate. Automobiles give excellent service and the charges are very reasonable. AH important towns, and many of the smaller ones, have a good electric car service. Telephones are available everywhere and no charge is made for their use. The average expense for traveling in Brazil, including the best hotels and first class accommodations on the best boats and railroads should not exceed $10 a day for a person of moderate habits. 128 SECOND PAN AMERICAN COMMERCIAL CONFERENCE Entertainments in Brazil are of a different kind from those in the United States. Receptions and dances are not so fretjuent, nor are big dinner parties so often indulged in. There is much more home life than in the United States. Theatres, movies and concerts are found everywhere, and entrance charges are very reasonable. A couple of hours spent in the late afternoon or evening in coffee houses are of frequent occurrence. This observation also applies to rooms of literary clubs. Life in Brazil is very democratic and great respect is shown to the intellectual classes who are exceptionally well informed on modern world problems. Anyone who has had experience in visiting foreign countries will find, I am sure, that traveling in Brazil is not only comfortable and enjoyable, but is also profitable and educative not only to the business man but likewise to the tourist. chi£e 129 CHILE TRADE AND INDUSTRIAL DEVELOPMENT By Senor Ernesto Montenegro, Representative of "El Mercuric,*' ot j Santiago and Valparaiso. . i (Read at the Morning Session of Tuesday, June 3) It seems to me that there are in the movements for a, closer relationship between the Americas, two forces coming to meet half-way. This two interests are different in origin, but they should be blended in a common purpose, if _ we want a permanent result. The United States wants a share of the Latin American trade, which should have proportional relation to its present productive capacity; and the Latin American countries wish to find an helpful hand to develop their resources. Both aspirations are, no doubt, perfectly right, but they will come to a conflict unless- the part of selfishness embodied iti them is taken away, to leave only what can further the ideal of continental solidarity, without making the other party, feel as if she has not received her share of the common wealth. It is generally known that the South American countries rank among the richest in the world' — ^they are in fact the reserve of the future. Shall they keep their fortune intact for other generations to exploit it for tbeir awn exclusive benefit, or shall those riches of nature be open to the world until they make up for the present famine ? The answer is obvious; and the Latin American countries are now willing as before to contribute with their wealth to the restoration of a general state of prosperity. Take Chile, for instance. My countrymen of two generations back, dis- covered and began the exploitation of the world's best fertilizer, the nitrate, and the same race of hardy people keeps flowing out today that same stream of nitrate that goes to give new life to the European soil and to the soil of these States. We are glad of being in a position to contribute to the welfare of the world; and what do we ask in exchange? We want our natural resources developed to the utmost, so as to benefit the largest portion of the human race; but, at the same time, we are perfectly conscious of our duty to our own people, who cannot be denied the right to benefit from their own inheritance. We welcome the tradesmen of foreign countries, but naturally we earnestly deserve to pursue the purpose: that every manufacturer that can be established in cur soil shall find there its home, so as to increase the comfort and happiness of our people. Can anyone blame us for that? No intelligent man, I think. For, in ultimate result, it is a well acknowledged economic fact that trade between nations must be founded upon the prosperity of the buyer .as well as that of the seller, and since you cannot draw constantly from a pocket without replenishing it every once in a while, neither can you exploit a country without creating, on the spot some sort of normal, steady wealth. If you want me to speak frankly to the last, I think that is the reason why I am not afraid of the Japanese succeeding in large business in our country. Their ways are too restricted, they live too much for themselves wherever they go, and their fortune, their_ family and all will go back some day to their native land, without leaving a single general benefit there where they, made their money; We believe in other kind of, commercial intercourse, and we have welcomed every foreigner who has been willing to live with us in equal' footing, learning our lan- guage, respecting our laws and contributing to our common duties. We believe that this is the only fair commercial intercourse, and the prosperity and satisfac- tion of thousands of foreign merchants throughout prove that they found their reward for their righteousness. Now, here comes the United States, with boundless resources and sharp- looking armies of tradesmen. They shall win their trade conquest, I am confi- dent, if the rearguard is one of capital and industry ready to promote riches in our country for their business men to harvest their portion of the general pros- perity. As I look into the future, I see the swarm of your merchant fleet steaming heavily toward the southern ports, and up on the deks, the mechanic, the engi- neer, the chemist, the professor, and the captain of industry, everyone carried toward South America by a purpose as beneficial to his mother country as to the GUATEMALA FORBIGK GOMMERGE 1917 TOTAIi # 16,80S,000. 9 90,000, UKITED KIN-C^DOM PAMAMe/i/CAf/ l/MOf/- CHILE 131 I new republic of the south. As far as Chile goes, I can assure you they will be heartily welcomed, and they will find there the metals, the woods, the leather and the_ wool, the coal and the waterfalls, to build up centers of permanent prosperity, which, in their turn will ■ increase the demand for American products. Our city services, our roads and railoads, our foundries and factories, are already benefiting by the help of American implements and methods. Let the progressive men of both races exchange freely; let the ideas, good will and appreciation interchange among them; let our public men have the opportunity for studying at close view the neighbor countries ; let your press extend the courtesy of its comment to every important subject or person dear to Latin American nations, and the prejudices and misunderstandings of the past will find no ground for the future harvest of conflict. CHILEAN FINANCES By Senor Don Augusto Yhxanueva, President of the Banco Nacional de Chile, Member op the Chilean Special. Mission in the United States. (Read at the Morning Session of Thursday, June S) Gentlemen: — ^A Committee of the Pan American Union has honored me by requesting that I read a paper on financial matters before the Second Pan American Commercial Conference that is held here today, and although I feel that a difficult task is imposed upon me as I cannot pretend to produce anything that may be new to this distinguished auidence, I beg, nevertheless, to explain briefly, as a slight contribution to the study- of the serious problems involved in the monetary circulation, what the experience of Chile has been in regard to our purpose of diminishing or atenuating, partially at least, the very serious incon- veniences pertaining to inconvertible paper currency, which in Chile have been of such a nature as to substantially disturb the normal development of business for many years. Before 1878 the monetary circulation in my country was based on the bi- metalic system, but, since 1873, the depreciation of silver together with internal commercial difficulties determined the flight of gold, considerably impairing the metalic banking reserves. According to the principles of bi-metalism, silver, under the circumstances, might have substituted gold for the legal payment of obliga- tions, but the imperfect conditions of silver for the daily transactions induced people to use in preference bank notes, which under the legislation of that time were issued with almost absolute liberty, and which were much more easily handled than the cumbersome and heavy silver coins. In this manner the prac-' tical elimination of all metalic currency was produced followed by a banking crisis which determined, in favor of the banks a temporary concession of the inconvertibility of their notes. The law in accordance with which the inconvertibility was authorized con- tained the necessary provisions for the repajfment of the notes in specie within a reasonable term, but only a few months had passed when the country was unexpectedly drawn into a war with two neighboring republics, a conflict which she had not provoked and for which she was not prepared. Under the urgent necessity of obtaining immediate resources for the pros- ecution of this war, the Government felt the necessity not only to decree the postponement of the resumption of the specie payments of the outstanding bank notes but even to make a new issue of fiscal notes, which, at first were emitted only in small amounts, but which, as it is the regular course in these matters, went gradually increasing while their market value decreased. The only Civil War in the history of Chile since her independence, broke out in 1891 depriving the Government in Santiago, from the very first moment of the struggle, of its principal sources of income which had passed into the hands of the opposing party while at the same time it was compelled to increase enormously its military expenditures. New issues of notes were un- avoidable, and although the credit of Chile in Europe remained unimpaired, thanks to the patriotic effort of both contending parties who without previous arrangements between themselves did all that was necessary to maintain the prompt service of our foreign debt during the war, and notwithstanding that 132 SECOND PAN AMERICAN COMMERCIAL CONFERENCE a metalic reserve had already been accumulated for the payment of the notes, uiese suffered violent fluctuations in their value and subsequently our currency depreciated as never before. As soon as our internal conflict came to an end the new Government pro- ceeded promptly to effect the metalic conversion which was considered a national ideal in spite of the enormous resistance of inflationists who opposed it in Chile as previously they had opposed it in the United States and who will resist it wherever great interests have been created in favor of the depreciation of money and consequently of the debts that have been contracted with it. As a compromise between the different prevailing tendencies in Congress, the conversion and payment of the notes was finally brought about in 1895 at the rate of 18 d. per peso, which was at that time the approximate gold value of the original silver peso in which the State was obliged to redeem its issue. The metalic system thus reestablished on the gold basis, only lasted- three years, and during that time was assailed constantly by inflationists, who, in 1898, finally succeeded in overthrowing, taking advantage of and even insti- gating the panic in the mark which arose from an impending rupture of the friendly relations between Chile and the Argentine Republic. This conflict was soon favorably solved but the evil caused by the country reverting again to the Pvstem of inconvertible paper currency, had already been accomplished, greatly emphasizing its characteristic defects, amongst which the main ones are it per- petually oscillating value and its lack of elasticity. The amount of inconvertible paper currency issued in a country is ordi- narily decided upon, in accordance with the more or less arbitrary or capricious judgement prevailing in the Government or Congress that authorize such issues, to appreciate the amounts actually required, but such judgment is rarely formed on the basis of reliable information as to the exact requirements of the moment, and even if such were not the case, it is impossible to ascertain the actual needs of circulation, because there is no standard measure for such requirements which vary day by day so that today's surplus may be tomorrow's deficit; When there is an excess of the circulating medium it naturally ' tends to inflate credit and stimulate the consumption of foreign products, which is par- ticularly the case in countries like Chile which depend largely on imports from' abroad which increase the payments due to European or American markets with the subsequent depression in exchange. On the contrary, if on account of the reduced bujring power of money or through other accidental circumstances of industrial, agricultural or simply commercial character this currency is more ex- tensively distributed throughout the country at the expense of the banking re- serves or even if by some unjustified fear the bank's deposits be withdrawn in abnormal quantities, the result of such contractions of the circulating medium is subject to cause serious disturbances in the business of the country which all Governments must try to prevent. Now the easiest remedy has always been to resort to the launching of new issues which come forth with the same dangerous results as the previous ones. Thus the lack of elasticity of paper currenpy and its inability to adapt itself automatically to the real necessities of the market becomes the principal element or factor of the increasing depreciation of "the currency. This factor is such an important one that even in countries where the circulation is on a sound metallic basis as was the case in 1907 in the U. S. A., disturbances have taken place, which were only radically suppressed after long and conscientious study and by the establishment of the Federal Reserve Bank. In Chile, where the unlimited circulation of inconvertible paper currency has prevailed for many years, where the establishment of a bank on the order of that of the Federal Reserve, has been impaired by the fear that if a State Bank should cede to certain conditions of the country, it might degenerate intd an influ- ential institution governed by political tendencies or by politicians who are not always above reproach, and in view of the fact that the fiscal issues of 1898, which amounted to only 50,000,000 pesos, without any apparent scarcity had risen in 1912 to 150,000,000, it became necessary to find some other solution and the Government' and Congress finally authorized the establishment of an organization intended to regulate the circulating medium, such as several years before had been proposed by the Banco de Chile. The characteristic conditions of that institution, known by the name of "Caja de Emision" (Bureau of Issue), are: CHILE ' 133 1st. The ability to increase or diminish the amount of circulation accord- ing to the countries' actual requirements, as estimated by the only ones who are in a position to know them — the banks, which are the intermediary of all business. 2nd. The amounts emitted by the Caja are to be fully guaranteed by their equivalent value in metallic gold but subject to being withdrawn by the banks which have issued them. 3rd. That these issues should be costly in order that banks may not abuse by converting into sources of profit, since they are intended only for the purpose of giving elasticity and must be withdrawn as soon as the particular circum- stances which caused their issue, have disappeared. At the same time they must not be so expensive as to be prohibitive With these ideas in view, the Caja de Emision issues fiscal notes and de- livers them to such banks of the country as require them, provided their re- quirements are not in excess of their paid-up capital and that a deposit is made with the Caja itself in Chile or with London' or New York Banks designated by the Government, of gold coins at a rate not exceeding 18 d. per peso nor less than 12 d., but always at a higher rate than the actual market value of the currency, and a security or guaranty is given to cover the surplus value of the currency in case of a higher exchange. As these transactions should leave no margin of profit and as the banks ' know that their stability depends on the regular operations of the Caja de Emision, the development of this institution has been eminently successful, and it is only during the last few months of the Great War, when banks were not allowed to dispose of the gold they held in London and New York, that it became necessary for this institution to temporarily relax somewhat the rigidity of its regulations. The advantages obtained by the country through this Bureau have been remarkable and several crises have been successfully avoided from their very birth which, before 1912 would only have been saved by an additional issue of incon- vertible paper currency. Thus, for example, in August, 1914, the panic caused by the war compelled the bankers to launch an extraordinary issue of 65,000,000 pesos, and in October, 1915, this amount was already reduced to 10,000,000 with- out causing any abnormal result. This system allows the development of busi- jness with a reduced amount of currency; and the banks work to the general advantage with a maximum of their resources. It does not seem excessive that a country like Chile, with a population of over 4,000,000 and whose foreign trade has reached in imports and exports 400,000,000 American dollars, with an even larger domestic trade, its circulating medium should be less than $10 per capita. The Chilean banks, with 500 million pesos of deposits, work safely with only 75 millions cash, because they rely on their gold reserve, which allows them to increase their working reserves when necessary. Unfortunately it is not sufficient that the circulating medium has the necessary elasticity to make it sound, as it is essential that it should also have a practically fixed value such as that of metalic gold, and in order to attain this end, there is no other way than to make it convertible in gold. The Caja de Emision (the Bureau of Issue) at present does not fulfill this condition, but it prepares the country to reassume with more confidence the converti- bility under the plan which so warmly and scientifically was supported by the late well-known economist, Mr. Connant; that is, on the basis of the gold ex- change standard, which is chiefly applicable to such countries as Chile, which far-distant from the great markets of the world and where, consequently, the mechanism of the rate of discount does not work as promptly or efficiently as is essential in order to regulate the monetary inflow and outflow to a country whose metallic reserves have lost their normal level. The gold exchange standard, while maintaining directly the international value of the currency, also maintains indirectly its internal value. It saves the use of currency and discourages the sterile hoarding of gold by individuals ; it concentrates that existing in banking institutions, where it obtains its real regulating value and saves unnecessary expenses of remittance for the payment of international balances, which is one of the main, objects keenly studied by the High Pan American International Committee. The Chilean Caja de Emision is only a partial application, it is true, but nevertheless it is a convenient one, of these principles, and it is for these reasons that I have ventured to explain its mechanism to this distinguished gathering. 134 SECOND PAN AMERICAN COMMERCIAL CONFERENCE NOTES ON CHILEAN HARBORS AND TRANSPORTATION FACILITIES By Senor Enrique L. Bunster, Delegate from Chile. The organization and development of her port and harbor facilities stands out preeminently as one of the most important among the many problems that Chile has to face in her desire to take that place in the work of reconstruction whicli is now going on all over the world to which her enormous natural resources, her magnificent climate, and the character and spirit of her people give her .in undoubted right. Owing to circumstances which prevailed while the greater part of that Con- tinent was still in the hands of Spain and in the early days of the several coun- tries into which it was divided at the beginning of the XIX Century, the proximity to populated districts was often considered of more importance when a port was to be established on any part of the South American Coast than the numerous other factors which today are considered indispensable in a Modern port. Lately, created interests also have had a great influence in the selection of harbour sites. As a direct consequence of these circumstances we find that many South American ports are situated on what is nothing more nor less than the open roadstead, instead of occupying the naturally protected bays and harbours which are found on the coast. Speaking particularly about Chile, we find there another circumstance which makes the complexity of this problem greater still; we refer to the physical for- mation of the South Pacific Coast. All along the Chilean Seaboard the ocean is very deep at a relatively short distance from the shore and the sea bottom is often of a treacherous nature, all of which tends to make any kind of construction work both a difficult and an expensive task. In the southern part of the country the largest vessels can steam through the canals of the Shiloe Archipelago at less than a stones throw from the beach, and in many places the luxuriant vegetation which covers the steep banks of the Chilean Fjords often gets entangled with the rigging of the ships as they pass by. Notwithstanding these difficulties the Chilean Government has recognized the importance which the solution of this problem has for the welfare of the country, and is spending at the present moment several millions of dollars in the improve- ment of the three principal ports of that country, and has completed the surveys and estimates for the harbour works of twelve or thirteen others. Work was begun some time ago in the bays of Valparaiso and San Antonio, and the contract for the improvements in Antofagasta, the principal nitrate ship- ping port on the coast, has recently been signed and work is to begin there shortly. Among the other ports where harbour improvements will be undertaken in the near future we may mention Arica, Quinteros, Constitucion, and Lebu as the most important, the first named being especially interesting as it is the starting point of the Arica (Chile)-La Paz (Bolivia) international railroad, and; the last one because it will open up one of the most extensive coal fields in Chile, and will one day be the Pacific terminus of a very important transcontinental and international railroad: Lebu (Chile)-Bahia Blanca (Argentine Republic). Apart from the improvements in the harbours themselves the Chilean Gov- ernment is at present studying also the practicability and prospective location of one or two completely equipped floating dry docks capable of handling vessels up to 10,000 tons. A law sanctioning this project has recently been passed by the Qiilean Senate. Although the improvements of the Chilean ports has occupied the most prominent position in the program of prospective public works which that Govern- ment has lately devfeloped, it may be well to mention also that surveys and esti- mates are being prepared^ with reference to the navigability of some of the Chilean rivers. The results obtained so far allow us to believe that this^is very feasible and that it will be an easy matter to establish fluvial navigation in that country. This would constitute a big step towards cheapening the transportation costs on produce and raw materials from the interior to the coast. The completion of the Chilean Central Railway System, with the moderniza- tion of the present equipment, the electrification of the first or Santiago- Valparaiso R. R. Section, and the increase of the double track mileage, has also been studied, and the transformation scheme, which is to cover a period of nine years, is to be started almost immediately. CHILE 135 COMMERCIAL AND INDUSTRIAL EDUCATION IN CHILE By Senor Feux Nieto del Rio, Chilean Information Service, New York In Chile, as in all Latin American countries, commerce, until recently, did not constitute a profession. It was rather an occupation learned in the traditional prac- tice of small businesses. During the seventeenth and eighteenth century business was in the hands of individuals who did not belong to the aristocracy, and who had come to Chile seeking their fortune, when the work of conquest allowed sufficient peace and tranquillity for the pursuit of commercial activities. In those times direct exchange of commodities was the rule, on account of the scarcity of money. As the aristocracy devoted itself preferably tq arriculture, which led to dominion and wealth, those who in the centuries referred to and in the beginning of the nineteenth century, made fortunes in business, founded families which hold today a most influential social standing. Many of those fortunes were built up from the trade in drygoods, household utensils, and all articles of consumption. These in time allied themselves with agriculture, dispossessing little by little the nobility from their lands, or mixing with it through intermarriage. It may be said that the dominant element in Chile today is composed of the descendents of those who were originally tradesmen — and sometimes even smugglers — and not from the genuine descendants of the conquistadores or land owners. But even as recently as twenty years ago, it was still considered improper for the young men of well-to-do families to devote themselves to trade, which had been relegated to foreign hands. Then began the sub-division of her agricultural estates, Ihe mania for holding Government positions, the abuse of the liberal pro- fessions, the exploitation of mines, and above all, the affluence of English, French and German merchants. The Chilean native, claiming any sort of pedigree, looked upon the commer- cial professional with disdain and characterized it with names of contempt, such as, "despachero" or "tendero." The clerks of the large commercial houses, and the storekeepers were generally foreigners and they are yet. English, French, Spanish, Italians and a few North Americans, are in the wholesale houses, and Spanish or Italians in the retail business. Only what is called commercial brokerage, that is to say, the commission business, the role of middle-man in certain transactions, was taken up by Chileans on account of the facilities afforded by speculation for making money quickly, a tendency which is very common in our Latin American race, which in itself is Uttle persevering by nature and fond of quick success. The general development of the country has been remarkable within the last few years, and the tenacious campaign undertaken by some intelligent men finally succeeded in awakening in Chile an interest for the commercial profession, and eliminating the nonsensical prejudice that there was against it among the well-to-do classes. The Government realizing the vital importance of preparing men specially for trade, organized educational commercial institutions which are doing a great deal of good for the country, ' even though they have not as yet reached the highest degree of perfection. These institutions, both private and official, together with the industrial institutions, have swept away from Chile the antiquated ideas as to the manner of enriching the country, and thanks to them the rapid denationalization of industries, which was becoming aggravated, ceased to be a serious problem. The young men of today, who deviated from the ancestral routine, are in Chije a live force whose influence is beginning to be felt in every walk of life, especially in the activities which we call practical. The Press has carried on formidable campaigns, not against the literary or purely cultural education, but against its inconsiderate abuse which gives as an immediate result a plague of "intellectual proletariat," that mass of bachelor of arts, of science, engineers, lawyers, physicians, etc., which in Chile, as in France, has sapped the energy of youth. The aim has been to inject the new element into the new life of modern activities and to prevent those new elements from being wasted in unproductive professions, and in Government positions without future. What might be called the re-education of the youth is the work of the com- mercial and industrial institute in Chile. In 1917, the Government provided for this kind of education, about 1,000,000 pesos on a large-scale, possessing as they do a healthful and equible climate, with -abundant water juire an idea of the things that Cuba sells and those that she buys. We have gfiven above the total foreign commerce of Cuba for the year ending December 31st, 1918. We now compare that result with the preceding ten years of foreign trade as published by the Pan American Upion. In these statistics are found the articles imported and exported by Cuba. TEN- YEAR TABLE OF FOREIGN TRADE. Fiscal Year. Imports. Exports. TotaL 1907-1908 $98,829,000 $112,122,000 $210,951,000 1908-1909 86,791,000 117,564,000 204,355,000 1909-1910 103,446,000 114,039,000 277,486,000 191ft-1911 108,098,000 129,199,000 237,297,000 1911-1912 120,229,000 146,788,000 267,017.000 1912-1913 135,810.000 166,208.000 301,018,000 1913-1914 134,008,000 170,797,000 304,806,000 1914-1915 128,132,000 219,447,000 347,679.000 1916-1916 201.024,000 336,801,000 637.826.000 1916-1917 261.377,000 367.040,000 618,417,000 The imports by countries for the last five fiscal years were : 1912-1913. 1913-1914. 1914-1915. 1916-1916. 1916-1917. United States $71,753,872 $71,420,042 $78,971,636 $149,590,768 $194,822,851 United Kingdom 17.411,522 15,618,673 16.003.714 16.714,838 19,362.766 Spain 10.602,302 10,884,058 10.459,426 12,399.319 16.151,692 France 8,237.276 8,267,297 4.240,171 5.358,342 6,227.217 British India 2,360,438 2,896.929 3.023,206 3,410,185 4,678.116 Uruguay 2,224,436 1,714,298 1,588,847 2,661,578 4,239,010 Porto Rico 3,403,716 2,987,510 2.427.760 2,427.344 3,168.664 Canada 1,498,964 1,664.902 1.309,467 1,316,667 3,630,870 Mexico 938,180 1.363,899 1,710,763 1,297,097 2,573,712 China 130,943 118,423 151,616 426,662 1,232,787 Italy 624,660 770,019 717,161 736,783 738,061 Argentina 1,657,796 1,457,633 888,244 766,610 694,563 Japan 170,864 141,789 97,238 269,426 647,067 Netherlands 768,316 992,363 1,779,861 862,866 626,191 Switzerland 385,386 480i082 143,844 222,991 461,063 Chile 1.938 123,018 16,412 394,600 Denmark 234,478 204,802 253,516 256.791 380.525 Norway 859.400 1,419,925 2,186,724' 1,296,031 356.631 Germany 9,516,104 8,275,766 2,218,556 64,367 3,170 Other countries 3,033,047 3,347,800 837.342 929,693 197.689 Total $135,810,590 $134,008,138 $128,132,090 $201,023,670 $261,377,234 CXIBA 149 The imports by classes for the last five fiscal years were : 1912-1913. 1913-1914. 1914-1915. 1915-1916. 1916-1917. Earth, stones and manu- factures of: Stones and earths $1,616,725 $1,801,636 $1,384,209 $2,008,162 $2,034,169 Mineral oils, bitumens, etc 1,346,830 1,521,616 1,447,779 2,380,562 3,109,421 Glass and crystal ware 1,796,902 1,577,972 1,021,971 1,644,871 2,064,183 Earthenware and por- celain 939,163 1,099,627 765,079 902,967 1,258,902 Metals and manufactures Gold, silver and plati- num 237.890 351,867 209,681 377,763 676,999 Iron and steel 6,814,244 7,460,425 5,346,326 8,488,562 15,233,641 Copper and alloys 1,102,349 1,108,818 734,498 952,404 1,742,476 All other metals 376,618 394,460 244,629 349,651 424,960 Chemicals, druers, paints and perfumeries : Primary products 632,113 496,440 582,481 676.817 730,180 Paints, etc., varnishes and inks 874,359 868,261 764,173 1,056,377 1,340,802 Chemical products 4,246,634 4.159,069 6,119,590 6.834,837 8,667,812 Oils, soaps, etc 2,334,144 2r,302,883 2,506,789 3,264,819 4,347,095 Fibers and manufactures of: Cotton 12.647,832 10,478.932 9.715.869 12.819,237 17,821,931 Vegetables, fibers .... 4,739,402 5,882.098 6,263,707 6,877,227 9,126,791 Wool, hair, etc 1,220,267 1,216,628 822.476 1,399,093 2,270,238 Silk 624,291 596,314 544,923 876,548 936,173 Papers and manu^c- tures of: Papers and cardboard. 764,799 1,949,875 1,601,458 2,673,381 3,929,005 Books and prints. ..... 449,945 486,192 316,589 276,308 329,386 Wood and other vege- table substances : Wood and manufac- tures of 3,674,558 3,344.998 3,026,161 6,037,296 6,107,768 All other 289,224 227,766 217,996 377,365 668,687 Animal and animal prod- ucts: Animals 416,261 379,268 282,166 404,446 693,888 Hides. skins and feathers 703.961 816.904 756.818 1,113,848 1,267,968 Manufactures of leather 6.806.433 5.109,620 5,632,295 7,072,899 8,266,171 Instruments, machinery and apparatus: Musical instruments, watches and clocks.. 321.926 371(663 227,383 338,236 430,004 Machinery 11.436,434 11,061,667 8,638,012 19,543.676 29,974,076 Apparatus 3,687,936 3,986,826 3,296,803 6,779,467 11,960,479 Foods and drinks: Meats 12.629.886 12.636,236 11,110,964 13,976,932 20,823,774 Fish 1.833.800 2.289.553 2.510,331 3,119,831 3,283,466 Breadstuffs 16,440,564 16,175,070 17,954,196 21.999.946 25,845,427 Fruita 768.201 800.265 776,586 1,206,362 1,461,324 Vegetables 6.512.761 6.176.203 6.060,(»4 8,773,608 11,460,918 Beverages and oils 3.469,419 3.997.262 4,246,695 5.096,082 6,410,684 Dairy products 2,908.422 3.313.834 3.241,295 3,710,983 4,060,992 All other 6,765,486 5.231,976 4,424,076 4,899,726 6,293,348 Miscellaneous 3:581,979 4,886,361 3,767,855 5,215,982 7,419,671 Articles free of duty... 13.009.332 10.951,949 12,823,419 39,199,633 40,124,657 Total $135,801,590 $134,008,138 $128,132,090 $201,023,670 $261,377,234 Cuba produces or can produce in large quantities many farm products that the United States consumes. At the same time Cuba consumes all kinds of American manufactured goods except those exclusively used in cold climates. Demographic reports show that the death rate in Cuba is lower than in any other country in the world. A. Hyatt Verrill, in his book on Cuba says that: "Although Cuba is best known and is most to be recommended as a winter resort yet in midsummer it has its attractions,, and many visitors find Cuba far more admirable in summer than in winter. At this season it is hot in the large coast towns, it is true, but in the interior it is pleasant, and nowhere in the island does the temperature score into the nineties as it does in New York and our northern towns. Moreover in the summer, tropical fruits are at their best, flowers deck the country with a riot of color and the miles of Poinciana trees form masses of living flame, a gorgeous scene never dreamed of by those who have seen the tropics only in the winter season." HONDURAS P0REIGK COMMERCE 1917 TOTMf *14r,3Z3,000. FRAKCE OTHER. &JUKTR1ES f 60,000 /^Ai' ^M£J?'/CAA/ C/A//Ofi/ CUBA 151 Very efiicient railroad service obtains throughout the island. The extent of the railroads is about 2600 miles. The first Cuban railroad was put in opera- tion in 1837, twelve years in advance of Spain, the mothei" country. Many fine roads have been built throughout the island and a plan for a general highway system is now being studied by Cuba's best engfineers. As a country for immigration, Cuba has already been appreciated by many Americans who have established themselves there and are doing good business. But the majority of immigrants still continues to come from Europe. The island's population is now about 50 persons to the square mile. But the country can easily support sixteen million people without ceasing to be an agricultural country. The latest statistics on immigration are the following: * 1917. 1918. Spain 34,795 14,292 Hayti 10,135 10,640 Jamaica 7,889 9,184 North Americans 1,013 771 Porto Ricans 895 395 England and Smaller Antilles 567 255 Mexico 526 244 South Americans 233 313 Central America 197 249 China 3 237 France and French Antilles 173 118 Hollanders (Curacao) ?6 100 Sundry from the Antilles , 195 37 The financial condition of the Government of Cuba is excellent and the bonds of the Republic are always very highly quoted in New York and in London. One of the great advantages for American bankers and merchants and people doing business with Cuba consists in the fact that they can easily control their own interests, Havana being but 52 hours from New York, via Key West, and less than three days by sea. These circumstances have favored business to a large extent and encouraged tourists to visit the country. Telegraphic service and a perfect telephone system allow of reaching almost any point of Cuba from Havana, and cables for the United States, Europe and South America can be sent even from the interior. There is a feature that should not be left unmentioned. Cuba is an es- sentially progressive country and takes and buys none but the best and up-to-date articles of all kinds. From the giant machinery of the stupendous sugar factories to the electric cars, self-communicating telephones, and the lighting system and port facilities, Cuba has the best that money can buy, and in doing business with her these circumstances should be kept in mind. 152 SECOND PAN AMERICAN COMMERCIAL CONFERENCE DOMINICAN REPUBLIC TRADE OF THE DOMINICAN REPUBLIC By Senor Manuel de J. Camacho, Consul General of the Dominican Republic in New York On account of the limited time at my disposal I must confine myself to giving you a brief sketch of the commerce of the Dominican Republic which I have the honor to represent. My greatest desire has been to^ee realized the lofty and useful labor of the Pan American Union for strengthenilfg the commercial relations among the coun- tries of the American Continent, and it is a source of pleasure, to me that this great ideal should be approaching its attainment more and more every day. In so far as my country is concerned, I state with pride that today, more than ever, it perceives the changes which for some time past the commercial relations between the United States and the Dominican Republic have undergone. The volume of business now being done between the two countries indicates that commercial cordiality has united in a close embrace the merchants and manufacturers of this country and the Dominican importers, and this feeling of commercial sincerity exists today without doubt, because the American exporter and manufacturer has come to realize exactly the great volume of business which the different Spanish American countries offer, and on the other' hand, because they have felt the need of correcting the estimation in which American products were held in many Latin American countries. i Now the American exporter and manufacturer offers liberal terms to the importers of Latin America; and it is also true that in the Dominican- Republic, as well as the majority of the countries which make up the American Continent, they have come to recognize the worth of American merchandise. This, coupled with the sincere desire for mutual cooperation, certainly furnishes an excellent basis for the betterment of commercial relations of Pan America. Many European countries used to offer very liberal and long terms to Dominican importers, while in this country they required cash payment, or, at the most they granted a very short term which offered no advantages. This state of affairs, however, has almost disappeared, and today exporters and manufacturers offer terms of sixty, ninety and one hundred and twenty days, and even five months for some mer- chandise. . The former condition obtained several years ago, because there was no knowledge in this country as to the responsibility or honesty of Latin American merchants, and on account of the lack of that cordiality which prevails now. To show the volume of business at present carried on by the United States and the Dominican Republic, it is sufficient to point out that four or five years ago the Dominican ports were visited only by three or four steamers monthly, of not more than 3,000 tons, from New York with cargo and a few passengers. \ At present this number is three or four times larger, and instead of the former three or four monthly steamers, there come to the Dominican Republic eleven, twelve, thirteen, and even fifteen steamers every month, not counting those which come by way of Porto- Rico. These steamers return to the United States loaded with sugar, cocoa, coffee and other Dominican products. This detail only reinforces what I have already stated with regard to the commercial cordiality existing between the United States and the Dominican Republic, but in spite of this cordiality there are yet some problems which the Dominioan merchant would like to see solved, and one of them is the need in the Republic for finding admit- tance for its tobacco into the United States, that is to say, that the Dominican product should not pay the high duties that are imposed upon it for importation into this country. In certain regions of the Dominican Republic they cultivate and produce tobacco as good as the best from Vuelta, Abajo, Cuba. This is shown by the ftct that several tobacco dealers in Cuba import Dominican tobacco, because they know its superior quality. It should not be doubted, however, that in the same way that the commercial relations between the Dominican Republic and the United States have, been made closer in such a cordial manner, the day will come also when the Dominican tobacco grower will be able to export his product to the United States without having to pay any higher duties than those who buy the tobacco from Cuba or other countries, ^ominican tobacco has been sold for a DOMINICAN REPJUBUC 153 long time in Europe, but, as is natural, on account of the proximity and conveni- ence, the Dominican tobacco grower would rather have the United States as tlie main market for his product. The investment of American capital in the Dominican Republic has . also contributed to the trade relations between the two countries. According to the opinion of experts the best sugar mill in Latin America is operated under La Romana, which is the property of a powerful American company. There are very many enterprises like diis in the country, under operation or in project. It is not to be denied that the work of the Pan American Union has been more than efficient, and therefore worthy of praise, because that institution has carried to the remotest corners of the American Continent the ego of the senti- ment of the trade of the United States and.^as made the North American public familiar with the Latin American standpoint. It is my opinion, like that of many others, that if American commerce con- tinues to be carried on in the manner tiiat it is has been conducted lately, there will be no other market in the whole world for Latin American products than the United States. COMMERCE AND INDUSTRY By Colonel G. C. Thorpe, United States Marine Corps. During my two years' military service in the Dominican Republic, beginning February, 1917, I had occasion to visit most parts of the southern half of the coun- try and became quite familiar with conditions in most of that section, comprising Seibo, .Macoris, Santo Domingo, Azua and Barahona Provinces. Of these provinces, Macoris is the most cultivated. Sugar cane is the specialty there. Sone of the sugar cane plantations of Macoris spread out into Seibo Province. In addition, a cane plantation entirely in Seibo Province, with headquarters at La Romana, is in the course of development with the objective of being one of the largest in the world. In Barahona Province (in western Santo Dbfningo), a company has been experimenting to ascertain if a very large section can be irrigated for cane. At present, the Dominican Republic . produces about 125,000 tons of sugar per annum, and this output can be increased many fold so far as fertile acreage is concerned. The sugar companies realized immense profits during the European war. Seibo Province also produces a quantity of first class cacao. This product is the small farmers' crop and really is thedirst industry of the country as to quan- tity or value of the crop. Nearly all the provinces produce cacao. There are considerable stretches of grazing land in Seibo and Azua Provinces where cattle raising tealizes large profits. Azua and Barahona Provinces produce a remarkably fine quality of fibre suitable for hat-making, fabrics, baskets, rope, etc. In Bani, about 60 miles west of the capital, one can buy a very good fibre hat for a dollar. An American Com- pany recently began building a factory at Azua town for preparing the fibre. It would seem that economy in transportation would have dictated placing the factory in the interior, nearer the center of the fibre fields, so that the long haul would have been for the finished product instead of for the plant Probably transporta- tion considerations, were sacrificed to the fear of lack of protection. Barahona produces a fine grade of coffee. I understand that His Holiness the Pope obtains coffee for his own use from those fields. In many parts of the country there are quantities of hard woods, especially mahogany and lignum<-vitae. An excellent tobacco grows in some of the northern provinces and many people prefer a 5 cent Dominican cigar to any 10-cent Havana. The fruits of Santo Domingo are varied and excellent. The allegator-pear is unsurpassed; the La Vega pineapple is heavy with sweet juice; oranges are delicious ; there are many varieties "of banana and plantin ; the cocoanut tree bears bountifully; one finds guava trees everywhere bearing loads of fruit; besides the guanabana, Spanish apple, grape fruit, and limes there are many other small fruits that are unknown delicacies elsewhere. Cotton is a successful crop around Monte Cristy. An American experiment- ing there told me that he was raising the long fibre cotton worth about $1.20 per pound. Cotton would grow in many parts. .■-.<•,!;. 154 SECOND PAN AMEROPAN COMMERCIAL CONFERENCE Indian corn also grows well. We used the local corn as forage for our animals during campaigning in the provinces. All kinds of garden vegetables, with the possible exception of the Irish , potato, grow splendidly and the fruit thereof is large and luscious. A tomato vine will bear several bushels of tomatoes that one can eat with relish like an apple. But foreign seeds should be planted each crop. It does not produce good results to plant seeds that are grown there, as the second crop, then, is small fruit. Almost .anything can be grown to advantage in Dominican soil. In Seibo Province I have seen loam IS feet deep. Land is cheap. The climate is the best tropical climate in the world. The other side of the picture is: ' (a) Good land titles are haild to get. The land laws are involved and boundaries are uncertain. Until the Government has a survey of the country and establishes a court to clear and fix titles, buying land is full of hazard, especially for the purchaser who. fails to sit on his purchase. (b) ■ The transportation problem is a difficulty which threatens the profits of almost any enterprise. In the south there are no railways except those owned by sugar estates and these are used exclusively by the owners; they are not public carriers. Although the lightest automobiles travel over some of the trails in dry seasons, there are few roads that would accommodate trucks or any form of heavy hauling except packing. (c) The labor problem is also full of difficulties. The native laborer is not a real worker. He finds little necessity to work where a few hours' labor will suffice to construct a comfortable shack to shelter him and his family and from which home he has only to stroll out^a few yards topick plantins for necessary nutriment For 25 cents he can bu}} a hen and a neighbor will give him a pig. Nature does the rest. Pigs, fowl of the chicken, duck) guinea, and turkey families raise themselves without care or artificial feeding. In many parts fruits are so common that one cannot buy them in the shops of the villages because everyone (at least every native) has them for the picking. The native customarily cares for a small patch of ground (called cunuco) where he plants a few plantin plants, maybe a little corn for his animals, and then a few cacao or tobacco plants, depend- ing upon the locality. From the produce of the latter he realizes enough cash to buy the few manufactured articles he may fancy. Or, if he objects to agriculture on his own responsibility, he may take employment on a sugar plantation, in which case he may work two or three days and then lay off many days. This unreliability of native labor forces the large estates to import laborers from the British islands or St. Thomas. These importations of5Fend tiie natives who claim that the reason they will not work for the estates is that the latter will not pay a living wage and do not house or treat them properly. (The Dominican cane cutter receives about one-third the wage that is paid in Cuba.) The importation of labor is one great source of complaint that the native countryman raises against the present regime; it is the excuse of the irresponsible for insurrection and banditry. He holds the Government accountable for all his ills. Although there is probably little Americain capital invested in the large estates, the native ordinarily classes all foreign holdings as American. And so there is consciousness (or sub-consciousness) of grievance against the American. To meet these difficulties: (i) There should be, as above stated, a Government survey and a land court to determine titles. And in connection with that reform should go another, viz., a land tax. There is now no national land tax, which accounts for the uncer- tainty of land titles. Revenue is raised from import taxes and licenses. This form of taxation hits the poor pebj)le very hard indeed, while the land owner does not have to use his land as he would if it were taxed. The native pays a large import tax on every manufactured article he uses. Even on refined sugar. Sugar is exported, refined, and comes back for use with an import tax. Although the country abounds in fine woods for furniture, there are no furniture factories, and the poor native pays a high tariff on what poor furnishings he has. (2) Of course the Government should push road-building. Roads would stimulate commerce and eliminate lawlessness. The transportation cost is so heavy upon whatever the native countryman can produce that he is discouraged from producing more than is absolutely necessary to get a few dollars. But if he coiild get the products of his industry to the market by a reasonable transportation charge his ambition would grow apace in industry instead' of in lawlessness — for thg DOMINICAN REPUBLIC 155 human_ being will have some activity. Eafly in 1917 I visited Bani upon invitation of the inhabitants who wanted a Government road from the capital. They exhibited their coffee industry and I wondered how they could have the heart to do the little that they did in that line when I realized that every sack of coffee had to be carried 6G miles on a pack animal before it came to a shipping port. They also showed me the splendid hats they could make for a dollar, which would be a real industry there if they had transportation. About 90 per cent of the inhabitants in that sec- tion were white, and so their adverse circumstances did not make of them in- surgents, but I could see men apathetic who might have been hustlers. (3) The labor problem would be cured by a combination of good roads and a wise colonization, ff little colonies of good Americans were scattered over the country to develop the latent productivity and possible industries with the motto, "Fair play and a good share of proHls to native co-operators," the native would learn to work well for good employers, and both the native and colonist, would have large returns. Present conditions in the Dominican Republic offer good openings to: (1) The American trader who would establish a trading post in. any of many localities to sell to the natives within a great radius every manufactured article they use. and, in turn, buy from them their whole produce. (2) In some localities such a trading post, with siifficient capital, could also cut and Ship timber (hard woods). (3) Cane growing and grinding. (4) Coffee raising. (5) - Cotton raising. (6) Cacao buying and chocolate factory. (7) Qgar making. t (8) Fishing. The natives are no fishermen and the surrounding waters are full of all kinds of good fish. There is a local market for much more fish than is provided by the few fishermen. Samana Bay would be one good fishing base, ffom which the railroad to the northern towns would dispose of a large catch. (9) Poultry. AH classes of poultry could be raised at almost no cost. Samana Bay towns would make good bases for such an enterprise, as from there the New York market could be reached in five days. (10) The cocoa-nut industry, yielding cocoa-nut oil, fibre, and cocoa-nut meat (copra). (11) Dominican limes, oranges and grape fruit, to say nothing of the alle- gator-pear, should make a good export trade. (12) Dominican pottery has possibilities. (13) There should.be at least one furniture factory, which could locally sell a large output _ (14) Nearly every Dominican town and city needs an ice plant and an flectric plant. The most important cities, such as the capital and San Pedro de Macoris, now have these plants but they are so inefficient that most people either use lamps burning coal oil or have their private Delco lighting system. Few people have been educated to using ice. In short, nearly every kind of commerce and industry is awaiting develop- ment in Santo Domingo. The excellent climate and beautiful scenery offer a good home to the reasonable investor and developer — not to the hoggish exploiter. Db- minicans may be found good neighbors under proper treatment 156 SECOND PAN AMERIC,\N COMMERCIAL CONFERENCE ECUADOR TRADE FACTS ABOUT ECUADOR By Senor Gustavo R. de Ycaza, Consul General of Ecuador in New York. (Read in the Afternoon Session of Tuesday, June 3) Gentlemen: I am most pleased and honored, as the delegate from Ecuador, to address my hearty congratulations to this assembly gathered in the Capital of the United States under the auspices of the Pan American Union. The western hemisphere, during the war which has ravaged Europe most terribly, has suffered the least, and is, doubtless, the one that has increased in wealth most. Some one's welfare is always the cause of the harm to others ; this seems "to be an injustice of Nature but it is a fact; more than three centuries ago Montaigne commented upon it as an unquestionable truth. The growth of richness in America offers the best historic opportunity to maintain it and even to further enlarge it through the development of commerce. To approach by means of a vigorous Pan American merchant marine the sources of production and the markets is the primary condition if we wish to de- velop business. I am not the first to state this, and many others will express the same idea, but I do not wish to overlook what we might call the desideratum in the matter: the means of transportation. The war forced this powerful country to build her merchant navy. It can be said that the United States has at present one of the largest merchant marines, together with the possibilities most promising for the expansion of the Pan American commerce. Referring to Ecuador, I believe that my endeavor must be to outline in a few words, not all that can be done to increase, or, at least, improve the conditions of our present trade with the United States, be- cause that task would be too complicated and, after all, beyond the limits of this address, not all that can be done, I say, but at least a little of what must not be done. On this line, Ecuador might well doubt in some cases the reality of things which are known to exist, for instance — and you will be surprised at the example — Ecuador may have the right to doubt the very existence of the Panama Canal. I think this is an excellent opportunity to give notice of a fact which is a very strange and almost unexplainjible occurrence. The transportation of merchan- dise from the United States to Ecuador is carried -on today under the same con- ditions as it was before the canal was built, when the railroad was the only means of carrying the cargoes across the Isthnyis of Panama. Ninety-five per cent of the American goods shipped to Ecuador arrive at Cristobal where they are landed and there they wait for weeks and whole months for the boat that will re-load them and take them to Ecuador. This means a heavy surcharge in freights, and, of course, is very detrimental to international commerce. 1 believe that to denounce this situation is self-explanatory and sufficient. Guayaquil, the principal port in Ecuador, is closing the hospital for yellow fever, for the simple reason that in more than three months not a single patient has entered it. The pretext, rather than the reason, for which the ships would not enter Guayaquil has disappeared. I avail myself of the occasion to make a public acknowledgment of the humanitarian work carried out by the Rockefeller Founda- tion, which has cooperated efficiently with the sanitary authorities in Ecuador for the extinction of that disease. When all the American merchandise exported to Ecuador shall be shipped directly, loading in New York, for instance, and unloading in Guayaquil, then Ecuador will learn, practically, that the Canal of Panama exists in this wprld as the wonderful victory of American enterprise and genius. The Republic of Ecuador begins about three hundred miles south of the Panama Canal and offers to the initiative and forwardness of American capital in- exhaustible sources of wealth, the best climates on earth, with most varied products ; the tropical and temperate zones within a comparatively small territorial extension. Ecuador produces cocoa and wheat, sugar and barley, bananas and grapes, that is', the products of all the zones of the planet. There have been found oil fields which render to a single prospector four thousand gallons a day. Then there are many other enterprises. Gold, silver, manganese and coal mines are worked in very small proportion, or not at all, because means of communication are lacking. Of 157 There are great opportunities for American capital that would be willing to go, not in search of concessions, but to take its place under the rulings of our liberal laws, which give to the foreigner the same civil rights as the nationals. It is not my wish to bring in this few -lines the statistics relating to our commerce, nor anything that may be drafted in figures, but I shall be glad to answer any questions' and give any information about Ecuadorian matters, provided they be within the realm of my knowledge or possibilities. In conclusion, I beg to express my warm desire for the greatest success of this Conference. 15& SECOND PAN AMERICAN COMMERCIAL CONFERENCE v GUATEMALA GUATEMALAN TRADE FACTS By Senor Francisco Sanchez LatoOr, Charge d' Affaires of Guatemala. (Read at the Afternoon Session of Tuesday, June 3) The diplomatic and commercial relations of Guatemala with the United States could not be better. We people from Guatemala cherish our traditions and our great andi loyal friendship for our Northern sister, the United States of America is really a tradition with us. ^y country has always endeavored to show what its sentiments are in that respect and has availed itself of every opporunity to second the United States in its efforts for the welfare of all and each one of the 21 Republics of the three Americas and its lofty ideals of Pan Americanism. The commercial situation created by the Great War is unique and specially favorable to the United States. In the three years before the war 1911-1912 and 1913, Latin American trade with this country, including both exports and im- ports, reached the sum of $2,361,088,613; with Great Britain $1,839,356,227 and with Germany $1,6SS,2SS,SSS. During the three years of 191S, 1916 and 1917, that trade with the United States reached the sum of $4,203,192,961, an increase tif 78 per cent.; with Great Britain $1,701,816,871, showing a decrease of 7 per cent., and with Germany it disappeared completely. These numbers give an idea of the position of the United States in the trade of the three Americas. We hope this position will be maintained. As to iGuatemala I will give a few details as to her commerce with this country: in 191 r the imports from the United States were $3,356,455 and in 1917 they amounted to $5,386,277; exports to the United States in 1911 were $3,297,156 and in 1917 they reached $10,057,330, nearly three times as much. In the details that I am putting down I do not give those of 1918 because on account of the earthquake that destroyed a large part of our Capital City and the entrance of Guatemala into the war with the object of seconding and upholding the ideals and principles of the United States, our trade naturally diminished, but now a large part of what was destroyed by the earthquake has been rebuilt, and so that all the reconstruction may be carried out we would welcome the help of American capital and American commerce, the latter being able to furnish us with a majority of the elements we need such as lumber for house building, all kinds of roofing material, cement, pipin^^ etc., in fact all the necessary articles for construction purposes. But coming back to the question of the commerce of Guatemala and so that the balance in favor of the United States may be seen in the last few years I com- pare four years of the war with three before the conflict: EXPORTS. Countries. 1911 1912 1913 1914 1915 1916 1917 United States $3,297,156 $3,863,829 $3,923,354 $4,874,379 $6,881,411 $8,688,573 $10,057,330 Great Britain 1,324,761 1,438,498 1.600.039 1,245,906 1,049,937 86,087 Germany 5.851.817 6,975,006 7,653,557 5,413,580 60,237 91,658 These figures speak for themselves as. also do thosQ referring to imports: IMPORTS. Countries. 1911 1912 1913 1914 1915 1916 1917 United States $3,356,465 $4,532,361 $5,053,060 $4,879,200 $3,761,761 $6,228,325 $6,386,277 Great Britain 1,662,503 1,739,689 1,650,387 1,389,645 677,200 1,066,786 Germany 1,990.822 2,250,862 2,043,329 1,842,739 146,053 6,169 So that you gentlemen may be able to form a more or less exact idea of the articles we have been exporting and importing, I have the pleasure to pre- sent the following statistical data taken from the Annual Report of the Depart- ment of Finances of Guatemala of 1917: GUATEM^A ARTICLES EXPORTED. 159 Articles. Cattle Founds. 41.900 998.100 168.900 .221,870,200 2,600 6,200 . 1,410,200 . 89,269.600 165,000 189,300 67,600 1,700 19,400 104,400 Value. $2,340 449,946 47,698 990,790 393 ' 1.315 74.735 6,355,577 66 69,694 3,310 36 487 9,400 Articles. Rubber Images and Sculpture ... Wool ■ Founds. 128.300 1,100 209,300 13,272,300 106,300 9,800 117,200 1.600 621.900 64,700 10,000 8,100 12,900 2,600 Value. 64,184 Sugar Leather (soft) Bananas Shoes 696 16,698 Lumber Honey Panela (dark sugar) Hides 138,254 14,693 294 35,477 In shell Clean Coconuts Chicle Live Plants and Orchids. Mineral Products Broom Eoot ^Woolen Cloth 390 46,071 3,834 10,016 Hats 7,373 Fruit Horns Beans Fibrous Plants Tobacco : Prepared Crude 3,748 699 ARTICLES IMPORTED. Articles. Kilos. Cotton Goods , 2.239,719 Linen Goods and Jute. . . 676,714 Woolen Goods and Cloth. 283,391 Silk Manufactures 9,672 Iron and Steel Manufao tures 1,633,907 Copper, Lead and Tin Manufactures 287,124 Wood and Iron Manufac- tures 343,263 Glass, Chinaware and Crockery 509,983 Leather and Skins 34,901 Value. Articles. Kilos. $2,294,425 Paper and Stationery 687,977 232,737 Machinery : 136,940 Agricultural 524,303 112,118 Railway 1,324,499 Petroleum, Crilde and Re- 399,609 A fined 28.887,462 Foodstuffs 3,926,833 107,958 Coal 509,895 Drugs and Medicines. ... 236.610 177,482 Wheat Flour 10,299,899 Wines, Liquors and Beer 408,282 74,800 Lumber 494,821 206,952 1 K:== 2.2046 pounds. Value. $239,263 157.289 128,170 252,826 437,687 6,322 278.263 1,008,061 77,627 10,632 As can be seen the principal article exported from Guatemala was coffee, whose value was $S,3SS,S77. After it came bananas valued at $990,790, next came sugar for $449,445. Guatemala coffee has a splendid reputation in Europe and is already well known in the United States. Incidentally I may mention that it was awarded the first prize at the Pan American Exposition in San Francisco, California, in 1915. Giiateraala also received grand prizes for her cocoa, rubber and bananas. Besides its agricultural products Guatemala has gold, silver, copper, iron, lead and zinc and antimony mines, which are known, but in the majority they are as yet undeveloped. Guatemala in its large forests has hundreds of different kinds of precious woods for cabinet making and dyeing ; the extraction of chicle and other gums is being developed and the rubber industry is also being adequately stimulated. As_ to imports in Guatemala, cotton goods came in the first place, as far as value is concerned, next came flour and afterwards iron and steel. Before the war Great Britain sent to Guatemala large quantities of cotton goods and Great Britain and Germany large quantities of machinery and tools for agriculture and if the United States intend to hold the position they now occupy in that branch of the commerce of Guatemala they, wijl have to take in consideration the efforts that those countries will make to regain the trade they lost. Guatemala signed last year a treaty with the United States which refers to traveling salesmen, in accordance with what was stipulated at the Pan Amer- ican Financial Conference which took place in Washington in May of 1915, which matter was taken up and developed by the High Commission on Uniform Legis- lation at Buenos Aires in 1916. Guatemala was the second country to sign such a treaty with the United States, which treaty has been lately approved by the National Legislative Assembly. The conditions marked out in that treaty are very favorable to the agents of American corporations and industries that may- desire to establish commercial relations with us or who may have already estab- lished them and the Legation here will be only too glad to give all possible inr formation referring to permits and rqles and regulations. MEXICO FOREIGN* eOMMBRGE 1917 TOTAIr 352,000.000. SPAIN- CUBA- Pan Am£r/can UAiior/ GUATEMALA 16] I thinlc it important to deal with two points referring to traveling sales- men and merchandise sent to Guatemala. The first one is to try and please as far as possible the taste or necessity of the buyer, not insisting on selling to him this or that simply because his firm has it on hand and even if it does not suit or is not pleasing to the buyer. So as to be able to take that in consideration the American business man must consider the climate, customs, tastes and other general conditions which must be different in countries of another race and other geographical position. Another matter of importance is the question of packing the merchandise. Guatemala has already constructed railroad lines which cross the important pro- ducing zones, but on account of the mountainous country, said merchandise has to be carried from the railway stations to a good many towns and nearly all the plantations on mule-back or in carts and for that reason it is very urgent that merchandise be packed in cases of a size and weight adequate to that sys- tem of traffic. The packing must also be done carefully and in a solid manner so that it can stand the trip. These are matters to which the European mer- chants always paid great attention to. A third question is the matter of extension of credits, but as Mr. Alfonzo Arenales, of Guatemala, refers to that matter in an article he has written for this Conference I think it sufficient to say that I agree with his ideas. Before ending this part and referring to the matter mentioned I wish to quote one of the Consular representatives of the United States in Guatemala, whose phrases are published in a Supplement to Commercial Reports, issued by the Bureau of Foreign Commerce, Department of Commerce, Washington, D. C, September 2, 1919, under the heading of "Advice to Exporters." That Consular representative gave this advice after obtaining practical experience and remaining in the country for some time, becoming acquainted with the people, their customs and tastes and taking in consideration the systems adopted by some of the American ex- porters, traveling salesmen, etc. He said in referring to the fact that American merchants could hold the position which they occupy today in the commerce of Guatemala : 'This can be done if merchants in the United States will remember that the seller of merchandise is in receipt of a favor and does not place the buyer under obligations in selling. If he will do this he will remember a variety of different points, which may be tabulated thus: (1) Make it easy for the buyer, by means of sample^ information and lang^uage; (2) fill orders as ordered; (3) learn the geography of the country; (4) remember that a satisfied buyer means more orders. "Men are often sent out to obtain business in Central America who seem to have the vaguest conception of the goods they handle, cost of shipment, etc., and they place the blame on the foreigners for their failures instead of putting it where it belongs. Very often an American house will have an expert at a large salary to take care of the business in different parts of the United States, but will place a $15 clerk in charge of its new export department. It may seem a small mistake to send goods ordered by San Jose de Costa Rica to San Jose de Guatemala, but the result is worse than if an order intended for John Smith, Albany, Oregon, was sent to John Smith, Albany, N. Y. "Knowledge is power" and especially is this true in handling foreign trade." So as to he able to inform those who may desire to visit Guatemala I can state that the climate of the Capital is ideal. In 1914 during the "warm" months, from May to July the maximum temperature was 98, ^, 92 and 92 degrees F. respectively, and in October, November and December it was 82, 78 and 82 F. The minimum in December was 41 degrees F., and m January and Feb- ruary 47 and 49 degrees F. It can be easily deducted that the temperature has a very limited margin for changes. The minima were not as low as either in Florida or California or the maxima nearly as high as in California. I can assure any one who takes a trip to Guatemala that he will never re- pent it. Communications by steamship between the ports of New Orleans and New York and Puerto Barrios and Livingston, on the Atlantic Coast, are very regular and there is always at least one ship a week. On the Pacific side steam- ship service is made between San Francisco, California, and the Guatemalan ports of Ococ, Champerico and San Jose. From both coasts one can reach the Capital 162 SECOND PAN AMERICAN COMMERCIAL CONFERENCE comfortably and in a few hours, by the interoceanic railroad line and one can enjoy a very interesting and picturesque trip. Guatemala has Consuls Gener^ in New York City, San Francisco, Cali- fornia, New Orleans, Chicago, San Juan in Porto Rico, etc,; Consuls in Mobile, Boston, Providence, R. I., Seattle, Baltimore, St. Louis, Galveston, Kansas City, Louisville, Philadelphia, etc.; Vice Consuls in Chicago, Boston, Pensacola, San Diego, California, etc., and they are all ready, having received special instructions to that effect, to give all possible information and data to American business men and to give them also all the facilities for the shipping of their goods, etc., etc The President of Guatemala is a very progressive statesman, he is a great believer in commerce for maintaining good relations with other countries and he has a special predilection for Americans. His wise and just administration is paying great attention to the commercial relations with this country and he is making every effort to develop them by all possible means; this Government gives all facilities within its reach to merchants who desire to do business with us. The hospitality of the Government and the people of Guatemala is proverbial, we await you gentlemen, you will be received with the greatest cordiality and good will. You can send us your industrial and agricultural products, we can reciproca,te by sending you ours. NEW ENTERPRISES IN GUATEMALA By Senor Marcial Prem, Adviser to Special Guatemalan Mission. I am not going to write a literary article. I am merely going to give you a general idea of certain important enterprises that might be carried on in Guate- mala, which would be of great benefit to that country, and a magnificent invest- ment for American capital, on account of the splendid and satisfactory profits which will be derived from them. I shall, therefore, say nothing about the commerce proper as relating to imports and exports of merchandise, etc. I shall confine myself to suggesting in a few words some of the transactions that can be carried on with regard to transportation, communication, electric light and power and other lines without entering into minute descriptions of that beautiful country, its geographic situation, its diversity of climates and the wonderful fertility of its soil. There are in Guatemala great facilities for developing as much water power as may be needed, and for transforming it into electric or mechanical power for innumerable as well as profitable industries and enterprises. It would take too long to enumerate them in detail, and for this reason I confine myself to calling jrour attention to the facilities and advisability of building electric railroads or street-car lines for the transportation of merchandise and passengers, and whose plants could also be utilized for producing electric light and power to satisfy the needs of the different towns, and agricultural centres. One of the electric trolleys or railroad lines that might be established to grreat advantage would undoubtedly be the one joining the town of San Felipe with the city of Quezaltenango for which the Government has already granted a very advantageous and ample concession which the concessionaire would be ready to sell under favorable terms. This line would serve the richest and most populous departments in the Republic which are known under the general name of "Los Altos." These departments are: Retalhuleu, Mazatenango, Quezaltenango, Totoni- capan, Solola, San Marcos, Huehueyenango y Quiche. The distance between San Felipe and Quezaltenango is approximately thirty- two miles. San Felipe is at height of 2,500 feet, and Quezaltenango, at 7,500 feet above the level of the sea, so there is an ascent of 5,000 feet in a distance of thirty-two miles. Not far from the coast line is the Samala River which would furnish the necessary water power. In order to realize the importance that this line would have, it is necessary to have an idea of the trade traffic in the "Los Altos" departments. This traffic consists in the exports which are made directly through the ports of Champerico and Ocos and the Mexican frontier via Ayutla; one-third of the exports that enter into Guatemala through Puerto Barrios destined to the departments referred to, and of the merchandise which is brought and carried directly from the capital. All of this comes over the San Felipe road, it being one of the easiest and one GUATEMALA 163 of the most rapid routes. The total movement of this traffic might be estimated as follows: Tons Imports from Champerico and Ocos 5,000 Exports from Ayutla 1,000 Exports from Puerto Barrios 6,000 Regular freight from the coast and from other points of the Republic to Quezaltenango ! 10,000 Cattle for consumption in the "Los Altos" departments. 10,000 Freight from Quezaltenango to the coast and other points.... 5,000 Total 37,000 Estimating the freight rates at only one dollar per one hundred tons, the total income would be $740,000 to which should be added the revenue from the passenger traffic which might be estimated at $180,000. Based on these estimates, the gross earnings of the line would not be less than $922,500 per year, and it is reasonable to assume that with the greater facilities for transportation to be secured with the line, the traffic would increase considerably. Since the cost of building the line would not exceed in any case $1,000,000, nor would the maintenance expenses be over $200,000, there would be a net profit per year of nearly $700,000. This on a invested capital of $1,000,000 would repre- sent a net profit of from 60 to 70 per cent per annum, which would certainly be most satisfactory especially if we bear in mind also the increase in value which the bonds of the company would have from day to day. With respect to electric light service in Quezaltenango, I can give the fol- lowing information: For street lighting, from 800 to 1,000 large lights might be provided which would be paid for by the municipality, and more than 1,000 small lights for private houses. This would be a sure additional source of income in the business that would be established at the same time in connection with the proposed electric line of which I am speaking. The broadness of the concession referred to_ allows for the enlargement of the electric road, light and power to the many neighbor- ing towns. In addition to this important line many other minor, though almost equally profitable lines, might be established all over the country. As the beautiful city of Guatemala was almost destroyed by the earthquakes of December ^917, and January, 1918, it is absolutely necessary to rebuild it. The new constructions should be made according to the modern style of architecture, and should be not only comfortable, but also earthquake proof. The planning of the city should be an improvement over the old one. This, naturally, gives origin to many good and safe business enterprises in which American activity and capital will find a most ample and profitable field. For the Government and Municipality buildings to be constructed, contracts would have to be entered into with the supreme Government and Municipality. Both would provide all interest guarantees. The buildings would have to be con- structed on partial-payment plan along the lines followed in this country for the sale of houses on the instalment plan. The best and most solid basis for erecting a modern city is undoubtedly to equip it with a good water supply system and with water in quantities sufficient to meet the needs of the whole population, together with a good sewer system. For the water supply there is a marvelous fall nearby with magnificent, crystaline pure water which can be taken from its own sources to supply the city. In the driest season of the year this fall carries 44,000 cubic meters in twenty-, four hours. _ It would be necessary to raise this water to 80O feet so that it may reach the city easily. For this there must be established a plant for developing 2,000 h. p. with the necessary pumps for raising the water. All this would be comparatively easy, and would cost more or less $1,000,000. Every two cubic metres per twenty-four hours could be sold at 200 pesos gold, because that is the price they now charge in spite of the fact that the present water is poor and the system is defective. The earnings from this service might be estimated at $2,000,000 which vrould leave a good profit. In addition to the water supply purposes this plant could be used to generate electric light and power at a price lower than the present. In a word, the business would be perfectly guaranteed and the invested capital would not run any risk. 164 SECOND PAN AMERICAN COMMERCIAL CONFERENCE Other enterprises of great importance might also be undertaken. There are in the Republic large tracts of excellent lands for the cultivation of sugar, cotton, bananas, com and other cereals, but they lack water. An irrigation system either by artesian wells, or by canals, would be a safe and very profitable business for which purpose an adequate concession can be obtained from the Government. Another enterprise of vital importance to the country, because it would pro- vide it with a waterway from the sea to very nearly the capital city, would be the canalization of a beautiful river which would be a comparatively easy undertaking because-the bed of the river is soft and there are no rapids, falls or other obstacles along its course. In the above lines I have only tried to sketch a few of the many undertakings that could be carried out in Guatemala, but I hope that they will suffice to give you an idea of the wide and magnificent field that American capital and enter- prise can find there. Guatemala is a new country still undeveloped and possessing the conditions for large investments of capital with the best and safest probabilities of success. The Republic has the additional advantage of being near the United States. The trip is short, easy and economical. One can reach Guatemala from Washington in seven days, thus: Two days from Washington to New Orleans; three or four days from New Orleans to Puerto Barrios, and one day from Puerto Barrios to Guatemala City. I believe it would be very advisable for American capitalists and business men to study and know our country. They would find the trip interesting and picturesque, and the climate healthy, the people affable and accommodating, and the Government, presided over by the eminent Dr. Manuel Estrada Cabrera, progressive and ready to encourage and protect every- thing that means improvement and welfare for Guatemala. If any person or corporation may think that it is possible to carry out in Guatemala any of the enterprises above pointed out, and wishes any further information, I shall be glad to fiu^sh it upon application addressed to me at 1533 Eye Street, Washington, D. C. TRADING WITH GUATEMALA By Sexor Alfonso Arenales, of Guatemala The success attained and which can be appreciated more ev^ry day in the tendencies of this Institution must be the motive of legitimate pride on the part of the supporters of the Pan American Union. The close relationship of the twenty-one Republics which form the great American family, is due largely not only to the nobleness of purpose but to the efforts of its Governing Board. The meeting of the Second Commercial Conference is a propitious occasion to praise its merits, but how could this be done better than by reviewing its triumphs? At no other time has the meeting of this Conference been so much desired as it is today. The nations of the whole world feel the commanding necessity of repairing the breaches opened by the war in their commercial interests. The nations of Ajnerica in particular, see in the hour of peace, a new path open to their very ample development, and it is only natural that, without loss of time and with praiseworthy eagerness io recover from the past four years of forced inaction, they should accept with unanimous sympathy and true enthusiasm, the opportune initiative of the Pan American Union. Guatemala, perhaps one of the smallest of the nations represented at the Conference, but undoubtedly one of those with the greatest enthusiasm for all that which means development and progress, sees in it a new opportunity to present to the capitalists and industrial men of the United States, the large field of its natural resources and productive investments. The very disaster that de- stroyed its Capital in the last days of 1917, amplifies the radius of action of those resources, enlarging the opportunities with a sure reciprocity of profit There is a high significance in the signing of the Treaty referring to Traveling Salesmen and Agents, between the Governments of the United States and Guatemala. This Treaty involves the most ample guarantees at the same time as the greatest advantages to all those who desire to put their merchandise on the Guatemala market. But necessarily we have to insist in recommending to the exporters and manufacturers of the United States, that if it is desired that the treaty may have the good results expected when signed, the selection of their GUATEMALA 165 traveling salesmen must be one of the matters to which particular attention be paid. And again, as the economical conditions tend to their definite settlement, we believe opportune also to suggest to the same exporters and manufacturers the idea of a more minute study in reference to extension and expiration of time for payments. The system which up to now has been followed by American merchants has been, with very few exceptions, "payipent on presentation of bills of lading, drafts, invoices, etc." Such conditions on many occasions have a burdensome result for our business men and without any advantage to the exporters, have a tendency to limit sales and orders, reducing them to the strictly indispensable. And it is easy to understand then that the slightest importance of an order or sale is re- duced in a positive manner to the profit in the transaction. One must consider, so as to better understand the necessity in which the exporters find themselves to seek a new system of credits for the consumers, and the justice of the merchants of Guatemala in asking for a modification of the system of today, that if it is true that our ways of communication and means of transport are of the most efficient, many a time the nature of the country itself does not permit the immediate receipt of the merchandise, cases occurring to some merchants in which they have to cover amount of their obligations before having any knowledge of the merchandise that represents them. All the banks estab- lished in Guatemala, and specially the Bank of Guatemala, have a perfect system of information and of collecting, which is naturally a great advantage for the establishment of a new system of the extension of credits and collection of pay- ments. The Guatemalan merchants have been waiting until the European markets may be in a condition to supply them with their commodities; but it is a well known fact that those markets for the present will only be able to meet their own necessities. To satisfy those of Guatemala, the variety of American products is large enough and their quality leaves nothing to be desired. We, therefore, believe that the moment can be taken advantage of without great efforts to supply with positive utilities the lack of European commodities, with the assurance that when American manufactured goods are well known, they will undoubtedly obtain the first place. It can be understood that European imports should have held the position of preference in the trade of Guatemala, in spite of the distances and the lack of steamship communications, because the consigners, who were better acquainted with the conditions and necessities of the country to which the merchandise was bound, offered to the consumer all kinds of considerations and facilities in the carrying out of their business. The usual terms for payment required by the European exporters were in no case less than 90 days, which terms in most cases are extended to twice that time. They do not collect interest on bills accepted and paid when due, and only in case of an extension of time. The usual interest in such cases is never over 4 per cent, a year. There is also another kind of credit which can be presented to the con- sideration of American business men. A credit which might be called "agricul- tural credit." Up to now it has been the German capital which has increased most in this kind of business in _ Guatemala, but the circumstances of today oblige the Guatemala agricultural business man to seek new bearings and get away from such a guardianship. The conditions of the credits obtained can be easily under- stood by the fact that with an astonishing rapidity many of the most valuable plan- tations in Guatemala have become German property, thanks to the cunning dexterity with which the Germans worked out their liquidations. It would not be possible to give details as to the conditions under which such credits might be extended; it would be tedious to enumerate the conditions and necessities of each one of our agricultural business men. But, it would be convenient that those who are interested should guide their steps towards easier paths so as to unite with the bonds of interest two nations which so expontaneously have united with the bonds of friendship. 166 SECOND VAN AMERICAN COMMERCIAL CONFERENCE HAITI HAITI— PAST AND PRESENT By Mons M. Charles Moravia, Minister of Haiti. (Read at the Afternoon Session of Tuesday, June 3) Ladies and Gentlemen-; Being a new comer amongst my colleagues of the Governing Board of the Pan American Union, and consequently being the least known, and speaking in French in this Conference where English and Spanish are the prevailing languages, I appear before you as a living symbol of the country I have the honor to represent. Haiti offers indeed this peculiarrity that it is the only French speaking Republic in the Americas. This fact, surprising to those who do not know its historical reason, is one of the causes of the isolation in which the Black Republic has been maintained. It is one of the reasons why Haiti is so ill-known, one that makes her American sister Republics look down upon her as if she were a stranger. Haiti is not only little known, but she has always been systematically dis- regarded, and the legends which have been forged on her account by travelers with a superficial mind are still circulating, while truth, the simple truth is vainly struggling against them. And if it is true that Haitian history contains unfortunate pages, how many glorious ones have been written in the Annals of Humanity by this little people! — ^pages so wonderful that it seems as if it had been in the plans of Providence to make the smallest country accomplish the greatest things. And, indeed, was it but a small achievement for this black people to conquer their independence by force of arms, after a glorious fight, as early as 1804, when practically the whole of America — ^with the exception of the United States — was made up of Spanish or English possessions? Haiti was the second country in this hemisphere to proclaim its independence, and this fact is the more remarkable when we consider that it was not only inde- pendence but also liberty that the Haitians conquered when they shook off the yoke of the mother country at the time France was at the zenith of her power. One year after the battle of Austerlitz, one year after Napoleon had dictated the peace of Amiens to a vassal Europe, the Haitians, thanks to their cour- age alone, defeated a French array composed of 25,000 of those troops which had entered the gates of the European capitals as victors; and in doing so they not only created a new fatherland, but proclaimed the abolition of sla- very, nearly three quarters of a century before the great Lincoln, thus crowning by the accomplished fact the great work of the French Revolution: the proc- lamation of the Rights of Man. You will forgive my pride, but I must tell you that there is not a more glorious page in the history of the world. But this is not all that the Haitians did for the sacred cause of Humanity ; the breath of God was on them. When the immortal Bolivar, vanquished and a fugitive, after the failure of his first effort, was seeking a place of refuge as well as help, it was in Haiti that he found both. _ The leader of the second American Republic, the chief of the Black people, in supplying Simon Bolivar with men and money, allowed him to resume the struggle, and to become later on the glorious liberator of the United States of Venezuela. This fact is but little known, although it has not been forgotten by the Venezuelans who have erected in a public place of Caracas, among their national heroes, a statue of Alexandre Petion, President of Haiti. Thanks doubtless to the physical smallness of Haiti, the example set by this country in freeing herself contributed even to a larger extent than that of the United States to the liberation of the Americas. It seems to me that this fact gives to my country not only an imperishable title of glory but also an incontestable right to the fraternal sympathies of every countries in this hem- isphere. I know that I shall surprise not a few in unveiling history in this manner, but I will perhaps surprise you even more in telling you that the Haitians were so evidently designed by Providence to participate in all the struggles for lib- erty and to cooperate in all the emancipations, that they also shed their generous HAITI 167 blood on the North American soil for the independence of the United States. It is written in indelible characters in history that Admiral d'Estaing, sent by France to the help of George Washington, completed his army by raising in Haiti a corps of 800 volunteers, negroes and mulattoes, who, mixed with the French soldiers, took part in 1779 in the siege of Savannah. Let me cite to you another trait of Haitian heroism. In 1903, only 16 years ago, a Haitian despatch-boat having dared to exercise the right of visit on board of a German merchant vessel, the arrogant William II. sent at once the cruiser "Panther" with orders to seize the little boat, which was then anchored in the port of Gonaives. Ordered to lower his flag, the Haitian admiral — ^his name was Killick — ^being unable to resist as his ship was not under steam, in- structed his crew to disembark; and when left alone on board, the officer blew up his vessel and went down to his death, preferring to bury himself in the flag rather than to lower it before the enemy. Compare, Ladies and Gentlemen, this magnificent deed with the ignominious surrender of the German fleet in No- vember last, and judge for yourselves. I have said already that the Haitians seem to have been marked by Destiny to participate in every battle fought for the sacred cause of liberty, it is not then surprising to see now the Republic of Haiti represented at the Peace Con- ference after having taken her place amongst the nations which fought German tyranny. To be sure, Haiti being only a small country has not materially con- tributed to victory, but you must know that even before their government had declared war on the German Empire, a great many Haitians had spontaneously left for France in order to enlist in the French army; and such was the conduct of these volunteers on the firing line, such was the bravery and their heroic enthusiasm, that the little bicolored flag will for ever have a place in the Mem- orial which is being erected in honor of the defenders of Verdun. Doubtless, you are wondering why I am dwelling at such length on points of history, and you may very well think that I am straying from the subject which I have been invited to speak upon. However, far from straying from the question, I am getting at the bottom of it. If we want indeed to see closer com- mercial relations established between Haiti and the other Pan American coun- tries, the first thing we must do is to promote a better understanding and a friendly feeling between the interested nations, and to destroy legends and re- move prejudices; in other words, we must create this harmonious spirit which is the very basis of business relations. This is the reason why I have not come to you with statistics which can be found in publications. I have not come here to tell you that the Haitian soil has been recognized even by our worst detracters as one of the most fertile in the world, and that, with the internal peace which is being made secure thanks to the friendly assistance of the United States, my country is assured of a rapid agricultural and commercial development; all things that you know or can easily learn. I wanted to tell you — a fact not generally known, and perhaps maliciously kept in the background — ^that while Haiti may have her defects, and although the militarism, which helped to establish our nationality and was maintained through circumstances which would require too much of your time to be explained and justified, kept my country outside the path of material progress, the Haitian people are far from being what the unjust and injurious legend has represented them to the outside world. Whatever the Haitian people have been in the past and whatever they are now, the fact that they have accomplished great things and have set an example to all the people of this continent, the fact that they have shed their blood on many sacred battlefields, and have, in spite of adverse circumstances, produced many remarkable men in the realm of arts and letters, all these facts entitle them to the fraternal consideration of the other Pan Amer- ican people. Sympathy creates interest, interest is an incentive to study and study en- ables men to discover business opportunities. This is the reason why I am pleading before you the right of Haiti to the sympathy of her twenty American sister Republics. Our material progress rests largely with the United States. What we need is American capital and American enterprise. We need rural banks; we want you to learn to appreciate the products of our soil which, before the war, went 168 SECOND PAN AMERICAN COMMERCIAL CONFERENCE principally to Europe. In conclusion I will say that my country, before which a new era is coming, asks nothing else than a fair chance to develop her re- sources, her unexploited riches, for her own benefit and for the advantage of the great market to the North: the United States. May this Conference result in promoting an active interest in Haitian affairs, and may this interest lead to the sympathetic study of the possibilities of the Black Republic, so that one day it can be said that Pan Americanism, which stands for union and solidarity of the people of this hemisphere, has contributed to their complete development. The Republic of Haiti occupies the western part of the island of the same name, the eastern part being the territory of the Dominican Republic. Its area is 10,200 square miles and its population is more than two millions. The language is French. The development of Haiti has been paralysed by a succession of ruinous revolutions of political character, due to the ambitions of individuals or groups to acquire financial benefits accruing to or controlled by the office of the President rather than to any uprising of the people as a whole. For in spite of all contrary appearances, the people are very peaceful and have always been rather passive in the hands of the professional politicians who exploited their ignorance. As the general conditions were growing worse and worse, the Government of the United States intervened, and in September 191S a treaty was signed between the two countries establishing a United States financial and police protectorate for a period of ten years with "provision for an additional ten years. This treaty, being a guaranty of internal peace, good order and sound administration of the public funds, marks the opening of a new era for Haiti. Besides the numerous revolutions which created a sense of instability, there was another barrier to the material development of the country: it was the article 6 of the Constitution preventing a foreigner from owning Haitian land. This obstacle was removed last year when a new Constitution was voted wherein that article has been amended in such a way that the foreigner may acquire Haitian land provided he lives or maintains an establishment in Haiti. The climate of the country is essentially tropical; epidemics are very rare. The health of the United States Marines, some of whom have been in Haiti for more than three years is reported as unusually good in spite of their living under hard military conditions. As to the soil, it is one of the most fertile in the world. The principal products exported are coffee, cocoa, cotton, logwood, lignum vitae, fustic, mahogany, castor beans, cottonseed oil, corn, honey, beeswax, hides, goatskins, sisal, sponges, turtle shell, fertilizer. The principal articles imported are building materials, bricks and tiles, cement, steel, lumber, light carriages, chemicals and drugs, dry goods, furniture, hardware, jewelry, machinery, notions, oils, paints, provisions, preserved food, salt fish, pork, beef, rice, flour, soap, wearing apparel, stationery. Before the war, most of the exports went to France, England, Germany, Holland and Italy, as most of the imports came from those countries also, because those markets were far more advantageous than the American market. The war raused a change and Haiti had to buy from and to sell to the United States. It is presumable that after the restoration of normal conditions the Haitian products, due to better prices obtained in Europe, will preferably go there ; but the United States may retain a part of the trade. In order to prove a profitable field for American interests, Haiti must be developed, and to that end, needs American money and American enterprise. The Haitian soil which is wonderfully fertile can produce abundantly, besides its present products, bananas, oranges, lemons and pineapples of the best kinds if modern methods of culture are employed. Agricultural enterprises would provide employment for thousands and thousands of Haitians and at the same time serve as an example to the natives who would become money makers themselves, and consequently spending more for comfort and pleasure, would increase by a great deal the volume of commerce. The United States, being the nearest great country, cannot but take advantage of that development. The example of Cuba is conclusive. So far the benefit of the American-Haitian treaty is felt only in the fact that the country is enjoying internal peace, that good roads have been built and HAITI 169 sanitary conditions improved; but the conditions brought about by the world war were very prejudicial to the Haitian commerce and the country suffered heavily. It is to be hoped that now that normal conditions are going to be restored, better results will be observed in the near future. Two American enterprises of importance have been established in Haiti during the three past years. The Haitian American Corporation, 25 Broad Street, New York, has built at an expense of more than three million dollars a Sugar Centrale which is one of the largest in the West Indies; the plant is working now and sugar is being exported to the United States. The United West Indies Corporation, SO Broad Street, New York, planted castor beans and gathered crops from five thousand acres, the article being in great demand during the war, and so successful was the enterprise that the Company is contemplating a great extension of its activities in Haiti. They ob- tained by purchase or lease the total of approximately 400,000 acres of land and are planning to plant tobacco and cotton, to establish modern cotton gins and cotton seed oil mills, and are considering also raising cattle and establishing dairy farms. The following synoptic table shows the export of the principal product for a period of ten years : Coffee. Cocoa. Cotton. Logrwood. Pownds. Pounds. Pounds^ Pownds. 1907-08 60,649,613 6.918.968 3,062.440 109,237,870 1908-09 39,136,535 4,433,282 3,627,359 88,408,031 1909-10 77,417,662 4,162,660 3,778.118 96.861,639 1910-11 61,796,619 3,228,350 4,198,227 76,197,092 1911-12 79,276.655 6,906,338 4.338.837 94.870,193 1912-13 67,693,830 3,919.120 4,287,722 97.198,160 1913-14 81,484,626 6.629,844 3,492,458 72,080,450 1914-15 36,260,085 4,200,406 2,492,982 49.832.611 1916-16 46,062,354 3.396,554 2.896.870 231,258,891 1916-17 47,235.926 3,860.671 4,604,671 94,379,661 The revenues of the Haitian Government from custom duties and other taxations amount annually to more than four millions. of dollars. The total debt, interior and foreign, is about thirty three millions. Various claims have been made as to the mineral resources of Haiti. Lignite has been found in three different points of the Republic, in the north and in the south. There are copper mines near Gonaives, and oil also has been found. NICARAGUA FGREiaW COMMERCE 1917 TOTAL* 12,368,000. OTHER GOu»rrRiES ♦ 81,000. ♦32,00O ITAliY » 41, 000. OTHKR. eOONTRIES GUATEMJCLA ♦ 38,00O. SFVMN i^e.ooo. CAWADA- 449,000. /^A/ ^A/f^/?/CA/{r 6/a^/oa^ HONDURAS 171 HONDURAS DATA ON THE FINANCES, INDUSTRIES AND COMMERCE OF HONDURAS By Senor R. Camiu) Diaz, Charge d' Affaires of Honduras. (Read at the Afternoon Session of Tuesday, June 3) Mr. Chairman, Messrs. Delegates: I am honored and pleased to submit to you the following data. They contain first hand and detailed information con- cerning the geography, finances, industry and commerce of Honduras. Geography. — ^The Republic of Honduras has an area of 44,275 square miles with a population of 800,000. Its boundaries are : to the north, the Caribbean Sea ; to the east, Nicaragua; to the south, Nicaragua and the Pacific Ocean, and to the west, Salvador and Guatemala. Its coast on the Caribbean has a length of 60O kilometers with many bays and inlets. The length of the coast on the Pacific is 85 kilometers and is formed on the Gulf of Fonseca, one of the laest bays on the west coast of America. The general topography of the country is mountainous, with extensive plains arid tablelands. The climate is splendid. In the plateaus the temperature varies between 5° and 15° centigrade and in the valleys and coasts it does not rise over 30.° The fertility of the soil is due partly to abundant water as the territory of the country is crossed by many rivers some of which are navigable. The Republic of Honduras offers a wide field for the investment of foreign capital, in the development of banking, commercial, industrial, agricultural and mining enterprises. Banks. — ^There are in the Republic two banks, the Bank of Honduras, and the Bank of the Atlantida. With this latter, the Bank of Commerce was recently merged. These two banks do not fill either the domestic Qr foreign needs of the country, because they charge an enormous rate of interest on loans and mortgages — 12 per cent per annum — and besides they have no branches in the principal com- mercial centers of the world. For this reason the Mercantile Bank of the Americas, and the American Foreign Banking Corporation of New York, have sent com- missioners to Honduras for the purpose of establishing branches in the country. Currency- and Exchange. — By virtue of Government decree, the standard of value of the Hondurean silver peso has been' fixed at fifty cents American cur- rency, and in view of the fact that the Hondurean peso was recently quoted iii this country at seventy-five_ (75) cents. United States currency, the Government has prohibited the exportation of silver coins. By reason of the fluctuation to which silver has been subjected for the last thirty years, the Hondurean Government has now under consideration the establishment of the gold standard. Willi a sub- sidiary silver coin of the same alloy used for the United States silver coins it is believed that this measure will prevent the exportation of silver coins such as has taken place with the silver coins of Honduras, Guatemala and Salvador which left the Republic attracted by the high prices offered by the New York market. Commerce and Industry. — If the statistics for the fiscal year 1911-1912 be compared with those of 1916-1917, it will be noticed that the trade of the Republic has almost doubled in value; in 1911-1912 it amounted to $7,397,492 gold; and in 1916-1917 to $14,323,339 gold, or an increase of $6,925,847. During the last few years the balance of trade in favor of the Republic has been, as a rule, 50 per cent. Any enterprising individual will find in Honduras a magnificent place for profitable investment by undertaking industries of various kinds. Almost all of important commercial firms in the country are European and American, many of them having branches in the principal trade centres of the Republic. During the last eight years the different administrations of Honduras have devoted a great deal of attention to the promotion of foreign trade. After the Panama-Pacific Exposition closed, I was commissioned by my Government to dis- tribute the exhibits of Hondurean products, which were presented at that exposi- tion, among the Hondurean Consulates in' the United States and also among several institutions, such as the Philadelphia_ Commercial Museum, which, after the Pan American Union, is one of the institutions that carries on the most extensive propaganda on behalf of the commerce of the Americas, likewise the Government has established Bureaus of Information m the consulates in New York, New Orleans, San Francisco, Chicago and Mobile. 172 SECOND PAN AMERICAN COMMERCIAL CONFERENCE Recently the Government of Honduras sent a consular mission to Buenos Aires, and the Argentine Government in turn opened a consular office at Teguci- galpa. Recently there have been entered into commercial reciprocity treaties with the neighboring Republics of Salvador and Nicaragfua. Negotiations are now under way for the establishment of branch agencies in Honduras of the Mercan- tile Overseas Corporation, in connection with the Mercantile Bank of the Americas. Experience has shown that one of the most efficient means for promot- ing trade is that of maintaining permanent exhibits of foreign merchandise. This system has given magnificent results in Honduras, as has also the sending to that country of expert travelling agents who know the Spanish language and who are familiar with the customs and needs of the inhabitants. The Hondurean law gives commercial travelers all facilities for the importation of their samples free of duty. The Chamber of Commerce of Honduras has under consideration the estab- lishment in its building_ of a permanent exhibit of the agricultural and mineral products of the Republic; it also has in mind the compilation of statistical data for the purpose of facilitating research by those interested in the commercial affairs of the country. Another means which has given satisfactory results^for inter- American trade in this country has been the exposition of moving pictures describing Latin America. The trade of the United States with Latin America could be increased if Latin American importers were granted reasonable credit terms for the payment of their orders. At present the longest period granted is sixty days which frequently elapses before the merchandise reaches its destination. In many cases American exporters require payment in advance and this is done even with highly-responsi- ble firms. The European exporters conquered the Latin American markets due to the long credits which they used to grant. On account of the abnormal situation created by the War, almost all the import and export trade of Honduras has been carried on with the United States. The trade with the neighboring and European countries has been secondaiy. Under normal conditions the trade of Honduras with the other countries of Latin America has" not been developed on account of the lack of maritime connection. For instance, our tobacco merchants export considerable quantities to Peru, but in order to send their merchandise to that country they have to ship it first to the ports of the Atlantic via New Orleans, Colon and Panama. When the shipment reaches Callao it has undergone four transhipments, after having spent several months in transit. In order to overcome partially this obstacle the firm of Bueso Brothers, of Santa Rosa de Capan. _ The principal tobacco firm in Honduras pur- chased recently a steamer to send its product from Peurto Cortes to Callao via Panama. With the scientific methods lately employed in Honduras in the cultivation and manufacturing of tobacco, this industry has improved remarkably. The United States market is favorable for the consumption of Hondurean tobacco, but on account of the heavy customs duties the product cannot be imported into this country. In my opinion, there would be no difficulty for this Government to lower these duties under the tceaty entered into between Honduras and the United States July 4, 1864, which contains the most-favored-nation clause. The same duties on Cuban tobacco might be made applicable to Hondurean tobacco. Durii^ the International Exposition of Guatemala in 1897, our importers became acquainted with Chilean products, particularly^ canned , food, cereals and wines, but we have been unable to cultivate commercial relations with Chile be- cause the exporting hoiises from that country have not sent agents to Hoiiduras, and also on account of thie lack of regular steamship communication. Honduras has always gotten its supply of flour from the United States, but in the last months of the War the American. Government was compelled to prohibit the exports of flour in order to meet the needs of the country, and to supply the allied armies in Europe. For this reason the importers in Honduras sent orders of flour to Chile, but the impoi-ters in the north and west of the Republic were not able to secure any amount on account of the lack of means of transportation between the Atlantic ports and Havana and Colon to which the Chilean exporters sent large shipments to supply the West Indies and Central Aiherica. After the United States entered the War, Honduras_ exported to the: American markets raw materials for the manufacture of war munitions and foodstuffs for the maintenance of the Arniy,' such as, mahogany and castor oil for aeroplanes and motors, shells for gas masks and sugar and cereals. HONDURAS 173 The proposal submitted to the Conference by Mr. Nicolas Hernandez of Havana, Cuba, suggesting the advisability of codifying the financial and customs laws and regulations of uie Pan American countries, is very wise, because such a codification will tend to develop and promote inter-American trade. Shipping and Steamship Lines. — Even before the War the maritime com- munications with Honduras were not commensurate with the needs of the country, and the situation at present is worse. This applies particularly to our largest port, Amapala in the Gulf of Fonseca on the Pacific Ocean. Of the five steamship lines which plied to the southern ports of the Republic, there is only left the Pacific Mail Steamship Company and recently this line suspended its services to that port, its steamers plying at present between Panama and San Francisco and stop- ping at Amapala very irregularly, this being due, perhaps, to the fact that the steamers were requisitioned by the United States Government during th^ War. For the same reason, the Ward Line was compelled to stop service to the above mentioned ports. Amapala is a port of entry for merchandise destined to the departments of the south, centre and west of the Republic, and through the same port are exported the products from the same departments. The business men of the country suflfer serious losses from the indefinite ^ring of their merchandise in Panama where the cargoes consigned to them must remaiii until there is an opportunity for transhipment to Honduras. On the Atlantic coast the steamers of the Cuyamel Fruit Company ply between New Orleans and Omoa and Puerto Cortes; those of the Tela Railroad Company and of the United Fruit Company ply between New York, Puerto Cortes and Tela; and those of the Vaccaro Brothers and Company between New Orleans, La Ceiba, Trujillo and Roatan. It is imperative that the Tela Railroad Company or tiie United Fruit Company should send from New York at least two monthly steamers, touching at Puerto Cortes and Tela. The coastwise and interior communication in the country is being improved constantly by the Government and the diflferent private companies. Lkke Yojoa is now served by several steamers, launches and tugs of the Hondurean Naviga- tion and Transportation Company. The Republic has several navigable rivers, the principal one emptying into die Atlantic Ocean. In Roatan Island there are two very good shipyards which build and repair the greater part of the sailing vessels that ply between the Atlantic coast ports of Central America and the United States. Recently there were bmlt in one of these yards five sailing vessels of considerable tonnage for Cuba, and several others for Florida. Agriculture and Forestry. — ^Agriculture is the principal resource of the coun- try, and the Government as well as individual enterprises have contributed always to its development. For the purpose of improving the cultivation and manufactur- ing of tobacco, the Government has established a school of tobacco culture whose results have been most satisfactory. It has also established two experimental farms and has already undertaken the organization of rural agricultural schools. Mr. S. Zemurray, an American, on the other hand, has already taken steps for the founda- tion of an agricultural college, in the Department of Cortes. Recently there have been organized different agricultural and industrial corporations which are strongly financed and are sure to be successful. The principal agricultural products of the country are bananas, cocoanuts, pineapples, oranges, sugar-cane, rice, sarsaparilla, as shown by the fact that they have always been awarded the highest prizes in foreign expositions and been quoted at high prices in the foreign markets. The cultivation of whea:t, henequen and sugar is now being undertaken on a very large scale. Honduras occupies the first place among the Central American Republic in the production of bananas. Its exports to the United States for the fiscal year ending July 31, 1917, amounted to 9,970,773 bunches valued at $5,742,- 273.90. The forest wealth of Hunduras is considerable, there being large woods of mahogany, cedar, pine, eta The transportation of these forests is facilitated by navigable rivers and several railroad lines on the Atlantic coast In the Phila- delphia Commercial Museum, may be seen a complete collection of samples of the various precious woods of the country. Live Stock. — ^This is one of the most important resources of the country. In the last few years, the exportation of cattle_ to some of the Latin American coun- tries has been done on a very large scale, it being preferred in those markets on account of the excellence of its meat. Exports have also been made to the Southern States, and recently the Department of Agriculture of the United States 174 SECOND PAN AMERICAN COMMERCIAL CONFERENCE sent a commission of experts to investigate the cattle industry of Honduras. The report of this commission shows that the breeds are of excellent quality, that the animals were in good healthy condition and that there was a good basis in the country for the breeding of first class live stock. Mining. — The mining industry occupies the first place in the country, the products being gold, silver, copper, bismuth and antimony, quick silver, platinum, mercury, iron and coal, etc. The New York and Honduras Rosario Mining Company has since 1882, when it started its operations, until 1918, obtained a total net profit of $36,204,027. In 1918 alone, its total net earnings were $1,803,751 and the dividends paid by the company in the last few years have been twenty per cent per annum. ' Other mining companies, likewise doing an excellent business, are — ^the Paetan Heim Company, The Honduras Exploration Mining Company, etc. Railroads and Highways. — In the last few years considerable attention has been devoted by the Government to this important means of national development. There are now in operation six lines with a total mileage of 750 kilometers, as follows : Vaccaro Brothers Railroad, Trujillo Railroad Company, Tela Railroad Company, Cuyamel Fruit Company Railroad, and Pan American Railroad. The principal highways of the country have been macadamized and are constantly beiHg improved under the direction of the National Government itself. The immediate effect of the general improvement of the country's highways has been a constant increase in the importation of automobiles, to such an extent that the Government has found it advisable to establish a school for chauffeurs, with good results. Ports. — The principal port of the Republic on the Pacific coast, is that of Amapala, on Tigre Island, which is constantly being improved by the Government Other important ports are those of Trujillo, La Ceiba, Puerto Cortes, Omao y Cuyamel, on the Atlantic coast MEXICO 175 MEXICO ^ MEXICO'S FOREIGN TRADE By Dr. Juan B. Rojo, Counsellor of the Mexican Embassy, Washington, D. C (Delivered at the Afternoon Session of Tuesday, June 3) The noted Baron von Humboldt aptly termed Mexico as the treasure house of the world. The list of articles produced in and exported from Mexico is a long and interesting one. First come the metals gold, silver, copper, lead, antimony, tin, zinc, mercury, sulphur, plumbago, mica, asbestos, salt, etc. Petroleum and its by-products are among the leading articles of export, having become so within the past twenty years and constantly increasing until they promise to take the foremost rank in this direction. Of vegetable products there is a large export trade in cotton, coffee, rubber, chicle, chick-peas, sisal and fibers of various kinds, tobacco, dyewoods, sugar and molasses, fresh fruits, vegetable oils, cocoa, ma- hogany and other hard woods, etc. Hides and skins are also exported in large quantities. Fully eighty per cent, of the foreign trade of Mexico is with the United States and undoubtedly will always remain so, for an indefinite period. There are two chief reasons for this: geographical situation and the mutual needs of each country for the natural as well as the manufactured products of the other. Mexico produces raw materials in- the shape of minerals of various kinds, hard woods, fibers, rubber, hides, oil and a great variety of other products for which there is a heavy and constant demand not only in the United States but in other countries as well. On the other hand, many of the natural products of Mexico find their way, after having entered into various forms of manufactures, back to the country where they originated and where they are consumed at a greatly enhanced cost to the producer. At the present time, as stated, by far the greater portion of the foreign trade of Mexico is carried on with the United States. Indeed, it is a fact that there are no direct or exclusive lines of oceah transportation connecting the ports of either the eastern or the western coast with any other country except the United States. Vera Cruz and Tampico are ports of call for a single line mak- ing regular trips across the Atlantic, but which also include Havana and certain American ports in their itinerary. Such a thing as an entire cargo of Mexican products on one of these steamers is almost unheard of and the total amount of traffic handled by them is inconsiderable by comparison with that which is carried on directly with the United States. So, too, on the west coast. Connection is made at_ several points by for- eign owned vessels with the Orient and also with the Pacific coast of the United States and of South America, but the transportation of a full cargo of Mexican products on any regular steamer is as rare, if indeed it ever happens, as on the east coast. In this connection the shipment of petroleum products is not re- ferred to, since from their very nature entire cargoes are not infrequently dis- patched to other than American ports. The greater portion of the immense and constantly increasing exportation of petroleum comes directly to the United States, much of it being refined there and subsequently shipped to all quarters of the globe. The greater portion of the traffic between Mexico and the United States is carried on by rail, the various trunk lines which traverse the Republic from north to south having their terminals at the border, where they connect with the vast railway system of the United States. The Mexican railways extend to the far south and with their branch lines may be said to drain all portions of the country. The lines which touch the United States at Brownsville, Laredo, Eagle Pass and El Paso have connections with the seaports of the Gulf of Mexico, and of the Pacific Ocean to the south, while the Southern Pacific in Mexico, which is the only through line tap- ping the West coast, traverses one of the most productive portions of Mexico and with its vast system on the American side of the border is able to deliver products of every Idnd in any portion of the United States or Canada without breaking bulk or transshipping cargo. A veigr extensive foreign trade has been built up 176 SECOND PAN AMERICAN COMMERCIAL CONFERENCE by this line in the few years during which it has made the State of Sonora, Sinaola and Nayarit accessible for direct rail communication. The latest reports indicate a constant and rapid increase in the trade be- tween the two neighboring countries at the various border points ncilably in the shipment of copper, lead and other metals. Means of Communication. — The communications between Mexico and the ports of Central and South America were, for a long time, rather difficult; but at the present time the traffic on the Tehuantepec Railroad has become normal. This railroad traverses the isthmus of the same name, and the services of passen- gers and freight can be effected directly from the City of Mexico to the border with Guatemala. Connections can be made at Salina Cruz with southbound steamers for Panama. The interoceanic traffic through the isthmus, between the port of Salina Cruz, on the Pacific, and Puerto Mexico, on the Atlantic, and vice versa, can be accomplished in ten hours. The two terminal ports have all modern facilities for loading and unloading vessels. The Tehuantepec route compared with that of Panama affords a great saving in mileage and transportation expenses. It is the earnest desire of the Mexican Government to enter into closer and open commercial relations with all the Latin American countries. Its desider- atum is that vessels leaving Mexican ports may do so loaded with petroleum, sisal, metals, etc., and may return carrjdng wheat, wool, nitrates, etc., and many of the numberless products which nature has bestowed upon the Southern Hemisphere. My sincere wish is that the results of this Conference, may not be left only on interesting papers to be sent to the libraries for the enjoyment of experts and scholars, but that each one of us, imbued with the faith of a true union of the Americas, may cooperate in the task of increasing friendship and commerce among the countries constituting the Pan American Union. ; HOW TO TRADE WITH MEXICO By Senor Carlos Arellano^ F*nancier and Merchant, Mexico City. ' (Read at the Afternoon Session of Wednesday, June 4) Mr. Chairman; Ladies and Gentlemen: Whilst in the city of New York purchasing American goods, I received the courteous invitation extended to me by the Hon. John Barrett to attend the Second Commercial Pan American Conference, which I most gladly accepted/ not- withstanding the briefness of time in which I had to prepare a comprehensive ^ paper, but imbued with the earnest desire to contribute to the increase of com- mercial intercourse between all the countries of-this Continent. Every one knows that the United States represents in this hemisphere the principal factor in the production of manufactures, inasmuch as all the other countries in same are mainly producers of raw materials ; nor does any one ignore also that in this marvelous country everything, absolutely everything, is manu- factured. For this reason it is undoubtedly the desire of the American manu- facturers to continue and to develop their commercial relations with the Latin American Republics. These, on their part, seeking their properly well understood convenience, and yielding to natural spirit of solidarity, should endeavor to elimi- nate the deficiencies which they have met in these markets where--they have been purchasing all their wants. Moved by this trend of thought, may I not be permitted to make out some suggestions to American manufacturers and exporters? Many of the American manufacturers, accustomed to dispose of their goods in their own vast home market, have paid but little attention to the suggestions made to them by the Latin American purchasers. For instance, when the latter ask for a small change in cerain kind of goods, in order to adjust them with the price thereof or to comply with local habits or tastes, the former reply ordinarily, briefly in this manner : "This is what we produce and this is what we sell." And if it is asked of them to make some practical change in packing, according to the exigen- cies of the consuming market,_ they also refuse to take the same into consideration. Naturally as the Latin American merchants are accustomed to buy in Europe, in MEXICO 177 whose industrial .centers these gladly comply with the modifications sought, it is to be inferred that when the European manufacturers are in a position to renew their exports, the manufacturies of similar goods in this country will find them- selves anew with a serious competition. Besides, some American exporters do not sell precisely the effects selected by the Latin American merchants, but when they lack the necessary stock of certain articles, they send others which in their judgment are equivalent, but without consulting first the buyer, causing thereby an injury to the honest exporters of this country, and giving ground to some merchants not acting in good faith in the consuming market not to accept orders, many times well filled, on account of the sending party refusing to meet the latter's bill, and caus- ing thus an injury to the credit of the honorable merchants of Latin America. Besides, the latter merchants have always obtained from the European com- mission houses an open account, or a period of 6 months for the payment of their orders ; this is a great inducement for them and in some cases it is the foundation of the success in placing certain articles in the market. On the other hand Ameri- can exporters limit themselves to sell by cash payments and often times they request that partial pajrment be made beforehand, and only as an exception it is granted that the payment be made within 60 days. The Americans are not to blame entirely for this procedure, for in order that they could grant the same facili- ties, the extension is indispensable of the American banking system by the establishment of their branches in the most important cities of Latin America; this would permit to the exporters a systematic discount of their drafts and would afford them an opportunity to have exact credit reports in regard to the firms of the markets where they desire to extend their business. In Mexico, ladies and gentlemen, we need greatly the establishment of a branch of one of the larger banks of this country. I am sure that the first great American bank which decides to establish in the city of Mexico such a branch will obtain huge profits and would aid at the same time most efficaciously to the commercial intercourse between the two peoples. As an eminently practical suggestion, I would suggest the sending of sales- men of representatives of American export houses, who should be persons who know the language and the commercial customs of the country where they are going to extend the market of their goods. These salesmen or representatives, on their arrival to a foreign city, will soon become acquainted with the especial needs of that market, they would acquire credit reports of the houses there established, facilitating thereby, to a great measure, the mutual knowledge of the contracting parties. It would be also of importance that all the Latin American Republics should unite themselves and establish in the city of New York a permanent ex- position of their products ; it is incredible the number of importers in this country who have no knowledge of what they can obtain in those markets; and it is the fault of the producers not to put the means in order to facilitate this knowledge. It may not be amiss to remind you of the great services which the Cham- bers of Commerce can lend in this matter, for having established relations amongst themselves and being in a direct contact with the producers of their own locality, they can lurnish any report which is asked of them as well as to place in touch buyers and sellers. To conclude, I have the pleasure to inform you the result of this my trip of investigations and of the experiences which I have made recently in this country. The manufacturing production of the United States in regard to quantity and quality goes at the head of its world's competitors ; the other peoples of this continent should know it, and we should all rejoice of this fact. When you will have an exact account here of what the Latin American countries signify as consumers of your manufactures and as producers of other indispensable elements of wealth, we can surely say that we have succeeded in placing the foundation for the solidarity of the economy of the American Continent. 178 SECOND PAN AMERICAN COMMERCIAL CONFERENCE NICARAGUA NICARAGUAN TRADE By Pedro Gomez Rouhaud of Nicaragua. Ladies and Gentlemen: I feel sure that this Second Pan American Com- mercial Conference, under the auspices of the Governing Board, and the presidency of the Director General, will be fruitful in beneficial results for all the countries here represented, for certainly there is bound to come from its discussions a marked improvement in the commercial relations of the countries of Pan America through which those relations of a social, intellectural and political nature will be strengthened. Commerce is a great factor in the task of regeneration and reconstruction- made necessary by the changes wrought by the World War, for commerce is indeed at the foundation of civilization, so long as it means not only the exchange of products for money or other products, but also and mainly for the mutual and reciprocal feood, development, progress, material and moral advancement of the countries parties thereto. That is the commerce I invoke for my country, Nicaragua^ a fraction of that Central American land upon which God bestowed with a lavish hand varied and plentiful resources. Nicaragua possesses gold mines, coflfee plantations, cattle ranches, immense forests of precious woods, such as, mahogany and g^uayacan, and others, and its territory oflFers the greatest advantages and facilities for the building of means of transportation, inasmuch as it is crossed in every direction by navigable lakes and rivers, and because the general topography of the country does not present many obstacles. At the present time Nicaraguan trade is deficient as many of its natural resources lie imdeveloped, others are not sufficiently exploited and all over the country they lack modern improvements and machinery to simplify the task of the farmer and the laborer. It is indeed a fact that Nicaragua is far from producing what its natural potential powers are capable of rendering. Gold mines are abundant in Nicaragua, but only a few in the departments of the Atlantic coast, Chontales and Leon, are at present under operation. The laws on mining are stable and just, and offer every possible guarantee to the owner whoever he may be. Nicaragua is equally rich in oil deposits for the acquistion of which it is only necessary to enter into a contract with tiie supreme Government Agriculture in general, and cultivation of coffee in particular, represent one of the principal sources of wealth in the country in spite of the fact that coffee growing does not reach, at present, even one-third of what it might produce if all the lands which are adapted for coffee were cultivated. The principal coffee pro- ducing zones in the Republic are Matagalpa, Granava, Carazo and Managua, but even in these departments not all of the land adapted to coffee is cultivated. Not even the land under cultivation is taken care of in accordance with the systems in- dicated by the -new agricultural processes, with the/ exception of the plantation belonging to Messrs. Vaughan and Gonzalez, whom I mention with pleasure as a recognition of their progressiveness and of the constant effort which they have exerted for the improvement of their property. The quality of Nicaraguan Coffee, its aroma, color and exquisite flavor, have created a very large demand for the product, to such an extent, that even lacking the great propaganda that is made for the coffee of other countries, the Nicaraguan product is preferred and sold at high prices in the European markets, especially since practically the greater part of the output was sent to Europe formerly, it being exported to Germany, England and France. During the war, the exports of coffee to Europe diminished, while in turn the shipments to the United States increased. Now that the war is over, it is natural to expect that Nicaraguan coffee will again seek its former European markets; for this reason American business men should endeavor to increase their purchases, should study 'our' market, and above all, should advertise our product, which, on account of its quality, would create greater demand, and bring larger profits. The best refineries in the country turn out at present over 250,000 quintales refined sugar. This product is now being exported to the United States with ad- vantage to the American importer on account of its pure quality. Cattle raising in Nicaragua is also an. important industry, yielding lately from 25,000 to 30,000 steers, which can be fattened in the Republic to the mean weight of 500 kiloes per NICARAGUA 179 head. The cattle may be easily exported to the seaports, either by railroads or by the Great Lakes and the San Juan River. Other products of Nicaragua are, beans, cocoa, cocoanuts, fruits, hides, skins and etc., etc All of these products duly and systematically exploited would constitute a magnificent source of national wealth and tend to bring more closely together the countries now united by common ideals of freedom. The Republic of Nicaragua is divided into 13 departments, 3 districts, and 2 comarcas, which are again -subdivided into municipalities. The capital city Managua lies on the shores of Lake Managua, only slightly elevated above sea level, but has good natural surroundings. The population is about 40,000. Some few substantial buildings attract notice, but it must be stated that the national and the municipal governments have plans for permanent improvements that will greatly benefit the city. Granada (population 7,100) to the south of Managua,^ and Leon (population 62,000) to the north, are two famous cities in Nicaraguan history, and have many elements of natural and architectural beauty. The chief port on the Pacific is Corinto (population 2,500), through which flows practically all of the foreign commerce of this part of the Republic, although San Juan del Sur (popula- tion 1,100) not far from the border of Costa Rica, is a regular port of call and was the western exit of the Nicaraguan canal as at one time projected. On the east coast the most important port is Bluefields (population 5,000). This is becoming a center for a very largdTjanana industry. Of interior cities, Rivas (population 14,000), between San Juan del Sur and Lake Nicaragua, is an interesting place, while M^tagalpa (population 15,750), north to Managua and in the beautiful moun- tain district of the Republic, where the famous- coffee is grown, has a fine climate and quite a foreign population. Other well populated towns include Jinotega (population 13,900) , Masaya, 13,000; Chinandega,',.10,600; Boaco, 10,600; Jinotepe, 9,400; Esteli, 8,300; Matapa, 8,300; Somotb 8,200. Sugar growing is profitably conducted, the production of this article, includ- ing the by-products — ^molasses, rum, and alcohol — having a valuation of considerably over $1,()00,000 annually. The largest sugar estate in Nigaragua is situated a few miles from Corinto on the west coast. Bananas are grown in large quantities in the Bluefields region and shipped to New Orleans. Cacao ranks in importance after coffee, sugar, and bananas among the culti- vated resources of western Nicaragua, and it is recognized as a remunerative product. At present the entire output is consumed in the country, the selling price being from 20 to 25 cents gold per pound. Two varieties of cacao trees are grown, and the Government is encouraging the industry by granting premiums for every planted tree coming into bearing. The average yield from each tree is about 2 pounds when in full bearing, or about 600 pounds to the acre. Tobacco is grown in several districts, the best being produced on the island of Omotepe, in Lake Nicaragua. The principal crops are corn, rice, beans, bananas, cacao, sugar cane, tobacco and fruits. Cattle, horses, and swine are reared, the number of cattle being estimated at about 750,000. The forests contain mahogany and cedar, which figure largely in the coun- try's exports, many valuable timbers, dyewoods, such as logwood, and medicinal plants. Gums and resins abound, and the native camphor tree is said to yield a variety equal to that produced in the Far East. Vanilla of an excellent quality grows freely, and senna is a native product Manufacturing industries are confined mainly to articles of domestic con- sumption, and include the manufacture of furniture, boots and shoes, sugar, rum, beer, candles, cigars, cigarettes, and soap. But it is the gold deposits that have perhapS contributed most in the matter of actual wealth to Nicaragua. From the date of first discovery through the years to present times, the adventurous have journeyed up the rivers and toiled across the table-lands there, seeking elusive evidence of the highest-prized metal. With the appointment of a special Minister of Public Instruction the C5ov- ernment is giving increasing' attention to this phase of national development. One hundred thousand dollars have been appi-opriated for school buildings in one city alone. In Nicaragua the school age is fixed by law at from S to 14 years. In a recent year there were 127,269 children of school age in the Republic, 64,733 of PAlvTAMA FGREIOK" GOMMERGE 191f TOTAIi * 14,84-7,000. OTHER COUNTRIES Pan Amek/caa/ Owon NICARAGUA 181 whom were boys and 62,536 girls. The average daily attendance was 15,644, con- sisting of 8,017 males and 7,627 females. According to a recent report there are 414 primary schools for both sexes maintained by the State:! 4 institutes and 46 private and municipal schools, of which 19 .were municipal and 27 private. There are also schools of law and medicine. Plans are under way to establish agricultural schools at several places. There are four institutes, with 876 matriculates and an average attendance of 783 pupils. The Central Institute for males and its annexes has 123 matriculates and an average attendance of 111; the Western Institute for males has 215 matricu- lates andan average attendance of 200, and the Eastern Institute (for males) has 282 matriculates and an average attendance of 245 pupils. The Normal School for girls and its annexes has an enrollment of 166 pupils. There is regular steamer communication carried along the west coast of Nicaragua by those lines connecting Panama and San Francisco. The ports oT San Juan del Sur an'd Corinto are the ports of call, the latter on a beautiful and ample bay having almost all the foreign commerce. On the east coast the chief port is Bluefields, between which and New Orleans direct and regular steamer connections are maintained. For other ports, like San Juan del Norte, on this coast, local steamers can be found in Bluefields. The Government has granted concessions to extend railways and to build highways, but comparatively little actual construction has been undertaken. Pro- gress is difficult in the country until the interior is rendered accessible by means of railways and highways, and when this is done it will mark a new era for Nicaragua. 182 SECOND PAN AMERICAN COMMERCIAL CONFERENCE PANAMA OPPORTUNITIES IN PANAMA, THE PAN AMERICAN CLEARING HOUSE By Senor J. E. Lefevre, Charge d' Affaires of Panama in Washington. (Delivered at the Afternoon Session of Tuesday, June 3) The Republic of Panama has an area of 8,500 square kilometers and a pop- ulation of slightly over half a million inhabitants. One of its principal industries is cattle raising. The Isthmus of Panama is not only self-supporting as far as meat is concerned, but offers remarkable prospects for enlargement of this in- dustry. A good-sized packing house could be established in Panama and enough pasture can be raised in the Republic to handle the cattle production of the neigh- boring countries : Nicaragua, Honduras, Ecuador and Colombia, on the Pacific Ocean. Another similar establishment could be built at Colon for the handling of cattle from Venezuela and Colombia on the Atlantic, having in mind its expor- tation to the United States; the isthmus being so much nearer to North America than are Argentina, Uruguay and Brazil. Our leading export is bananas which, with the opening of the Canal, offers new fields for profitable cultivation on the Pacific coast. At present this industry . is almost confined to the Atlantic side, chiefly to the province of Bocas del Toro, vyhere the United Fruit Company has some of its plantations, which are a prac- tical lesson of the conquest of the tropics by the white man. Cocoanuts are our second export staple. The "San Bias" nut is considered the best in the world. The planting of cocoanuts, the exportation of copra and the manufacture of oils and other by-products would be a good and safe invest- ment to American capital and enterprise. Sugar cane, next to the raising of artificial pastures, is the leading agri- cultural activity of our Pacific slope. The sugar industry is yet in its incipieney although its development is rather rapid at present. The potentialities of the Republic of Panama as a sugar producing country are extraordinary and should not be overlooked by American business men. When I safely advise the invest- ment in cocoanuts and sugar planting I have also in mind the opportunities offered to the manufacturing concerns which deal in the machinery and implements nec- essary for the development of the industries mentioned. Panama produces first grade ivory nuts and the best hard and cabinet woods. The manufacturing of buttons and other articles made of vegetable ivory as well as the making of beautiful furniture from native woods is already in its beginning. Besides the excellent local raw material at hand, the ivory nuts from Colombia and Ecuador could be utilized by a large button factory established on the Isthmus. The hard woods of Central America and the neighboring Republics of South America could be used with great profit, by the saving of transportation, in the manufacturing of furniture which could be distributed, with equal advant- age, from the Isthmus. The time at my disposal for this address being so short I have taken into consideration only those industries which already exist, and which do not pre- sent any doubts as to their ultimate success, under reasonable conditions, and which involve less risks than the average business venture in any other country. The Government of Panama is willing to give hearty cooperation to all enterprises, without granting any special privileges or monopolistic concessions. Our legation is ready to furnish any information desired by anyone who may wish any data on any particular branch of industry or agriculture, so far is its possi- bilities or potentialities in the Republic of Panama are concerned. I will, therefore, endeavor to bring out, as the main subject of this ad- dress, the uppermost importance which the Isthmus of Panama and the Panama Canal have in Pan American trade. To this end I shall call your attention to the unlimited possibilities, as distributing centers for American merchandise, of- fered by the cities of Panama and Colon, which are so close to the Pacific and Atlantic terminals of the Canal. These ports should form, in the near future, the advance guard of the much needed and welcomed American trade expansion, which is so closely connected with the great cause of Pan Americanism: a cause whose practical and idealistic phases mean so much, not only to the welfare of PANAMA 183 this hemisphere, but also to the advancement of humanity, whose fate seems to be linked with the Americas. Already some progressive industrial corporations of the United States have awakened to the realization of these facts and of the vastness of the possibilities which I have already briefly mentioned. The Government of Panama has entered into a very equitable and fair contract with the Goodyear Rubber Company for the establishment of a bonded warehouse for their products, which step augurs an auspicious beginning. This Legation is taking up this important subject of warehouses with the United States Government, working hand in hand in the •iosest cooperation, so as to fully benefit the people and commerce of North and South America. The great world war, happily brought to an end at last, affected the Panama Canal very severely. It even prevented its formal opening to world trade when the great undertaking was completed and it limited considerably its wonderful opportunities, reducing them to such conditions as to reach a very low minimum. Conditions are different now. Favorable changes have taken place. The war has made the United States the unquestionable market for its sister Re- publics of the South. These countries will be hereafter its main source of raw materials and a leading market for the export of its maufactures. The approach- ing expansion of the American merchant marine will give the expected impetus to the Panama Canal. Thus the time has come when American business men of far-sightedness and vision, should not overlook the unique strategical commercial advantages of establishing branches in the cities of Panama and Colon, with their own bonded warehouses for their products; and central agencies for the quick and efficient distribution of their merchandise. I would even go so far as to point out the opportunities thereby available to create educational centers for the preparation of specially trained "ambassa- dors of commerce," as your traveling agents and representatives of Latin Amer- ica should be. Panama has exceptional conditions ta obtain this end, as both iSpanifih and English are widely spoken there. I could keep on addressing you on this subject, which has enough material for many a lecture and conference, but my time being restricted, I will not go into details. Nevertheless, I shall not finish without previously assuring you, in my official and personal capacity, that in the carrying out of these far reaching plans you will find in me the heartiest cooperation. I can assure you, likewise, that my Government will meet you more than half way to make the Isthmus again what it was, in a smaller degree, during the Spanish dominion and to transform it into what God and nature have intended it to be: the geographic and commer- cial link of the Americas; the meeting point of two civilizations — the clearing bouse for the trade of all America I 184 SECOND PAN AMERICAN COMMERCIAL CONFERENCE PARAGUAY COMMERCE, INDUSTRY AND FINANCE Paper presented by the Paraguayan Legation. Population and Area Paraguay, with an area of 196,000 square miles (507,640 square kilometers) — being larger than those of the original thirteen American States lying north of the Potomac River — has an estimated population of 1,100,000, the greater part being east of the Paraguay River. Climate With the exception of a small portion of the northern part of the country, Paraguay lies within the South Temperate Zone, the climate ranging between that of Habana and the southern tier of the United States, having many similarities with the latter. Observations covering a number of years indicate that the annual temperature at Asuncion, the Capital, varies between 35° and 106° F. (2° and 35.5° C), the mean for the year being 74° F. (23.3° C), that for the summer, 82° F. (27.7° C.) and for the winter, 64° F. (17.7° C.)— this last making the coun- try a favorite winter resort for persons living farther south. Taking a normal year (1915), the number of days having a teinperature of 68° F. (20° C), or less, was 90; between 68° and 86° F. (20° and 30° C), 206; and above 86° F, 22. The atmospheric pressure ranges from 30.1 to 30.4. Quoting from the South American Year Book (1915), "it is therefore evident that Paraguay is a healthy country, indeed one of the healthiest in the world, having no bad effect whatsoever on the European." Rainfall The annual rainfall — an average taken for twelve years — is 60.5 inches, being distributed over the twelve months — the greater portion falling during the sum- mer season, November to March, with the minimum during the midwinter months of June and July. During 1915, the number of days having precipitation numbered 81 ; those of a nebulosity of 100 per cent, 33 ; from 60 per cent to 90 per cent, 76 ; from 30 per cent to 60 per cent, 101 ; and from 1 per cent to 30 per cent, 99. — or a mean nebulosity for the year of 44 per cent. Physical Characteristics , With the exception of that portion of the Republic adjoining Brazil, the country is of a gently rolling contour, there being an almost imperceptible differ- ence between the altitude of the northern and southern parts. The result is an exceedingly rich soil, the greater part of the underlying portion being a ferruginous sand, this being covered with the decayed humus accumulated from centuries of prairie or forest vegetation. In the eastern part rivers and other streams are abundant, the same being true to a lesser extent in the western part, known as The Chaco. Artesian wells may be sunk in any part. Transportation Paraguay's "main transportation "facilities are afforded by navigable water- ways, in the possession of which it is more highjy favored than any other country of equal size in the world" {Foreign Commercial Guide: South America, Phila- delphia Commercial Museum, 1906). It is for this reason that greater efforts have not been made in the past to construct rail transportation, although the first rail- road in the River Plate region was constructed in Paraguay. Through the center of the country flows the Paraguay River, one of the world's great water ways — being about one mile wide at Asuncion, and allowing for vessels of ten-foot draught (and nine-foot draught to Villa Concepcion) and being navigable for smaller vessels twelve Hundred miles to the north. On the southeast and southwest flow the Rivers Alto Parana and Pilcomayo, the former navigable for large vessels; PARAGUAY 185 while within the country are innumerable streams utilized for transportation. Rail communication is maintained with Buenos Aires by a single line — the Paraguay Central — from Asuncion, running southeasterly to Villa Encarnacion, at which point connection is made with the Argentine Northeastern Railway. Prior to the outbreak of the war construction had been begun on a branch' line extending southward through the rich agricultural lands below Paraguari; and likewise from south of the town of Borja, near Villarrica, eastward to connect the Paraguay Central with the Sao Paulo Rio Grande Railway (of Brazil), bringing Rio_ de Janeiro within sixty hours of Asuncion, and Paraguay a week nearer the United States. There are, in addition, several private lines of railway belonging to cer- tain industrial enterprises. The total number of miles of railway in the Republic — ^December 31, IP18 — amounts to 464, of which 264 are in the eastern part, and 200 in the western part, or The Chaco. Their physical valuation, including rolling stock, amounts to 10,110,000 pesos gold (peso gold equals $0.9648 U. S. gold) ; that of tramways and electric lighting plants, 2,000,000 pesos; and telegraph lines (1,915 miles), 680,000 pesos. Agriculture The agricultural productions of Paraguay are varied, including nearly everything that is grown in the United States, besides other products adapted to its semi-tropical climate. Tobacco: Among its most important productions — and the crop of greatest cultivation — is tobacco, this earning for itself a well deserved renown for more than a century in the markets of continental Europe and in the nearby countries — notably Argentina. With climatic, humidity, and soil conditions resembling closely those of Cuba, some varieties of the Paraguayan staple possesses an excellence of quality differentiating them but slightly from the well known "Habana" leaf. With the same care in their selection, handling, curing and elaboration — now the sub- ject of the supervision of the Banco Agrfcola (the Government institution having charge of the development ^nd culture of this_ staple) — it is hoped that soon the tobacco of this country will enter into competition with the celebrated grades of every clime. So far, rigorous rules for the grading of tobacco have been adopted, a penalizing surtax being placed on the ungraded product. Figures for the year 1863 — prior to the war of the Triple Alliance — indicate the production as 68,740,000 pounds. No figures are available as regards recent production, but, in addition to the domestic consumption (important in itself), the exports in 1916 amounted to 14,927,066 pounds; in 1917, to 15,275,047 pounds, and in 1918, to 15,513,252 pounds. None of this comes to the United States. Prior to the war just ended, the greater share of the exports was made to Argentina and to Bremen from which latter port it was transhipped^ to Spain, where it is received with the greatest favor, the principal buyer being the Tabacalera Espafiola. During 1918 difficulty was ex- perienced in marketing the crop abro'ad, due to the scarcity of jute bags — a scarcity that is to be met by the recent installation of a plant for the utilization of native fibres, and otherwise to be relieved by the raising of the embargoes of the warring nations on the sale and shipment of these necessary containers. Recently, also, the labor difficulties at Buenos Aires have interfered greatly with the export trade in tobacco, as well as in other commodities. Cotton: Cotton promises to be an important crop of the future, as it has been in other days. While the Paraguayan staple is not today commercially im- portant in the world's markets, experience has shown that the country is poten- tially adapted to the cultivation of this staple as are few other localities. In tests made with native cotton, it has been found to have the longest fiber and the greatest tensile strength, being peculiarly adapted for certain purposes, such as the manufacture of automobile tires and fire-hose. Its culture is also under the supervision of the Banco Agrfcola, which institution is employing experts and testing the availability of well known classes of cotton, notable success being attained with the Sea Island, Eg3T)tian, and "Caravonica" grades. The s^eld of fiber, according to Dr. Moises Bertoni, the Swiss botanical authority, is, in average number of pounds per acre — in round numbers — ^as follows for the following cot- ton producing regions: Italy and Spain, 135; Africa, in general, 180; the United States, 200; Argentina, 310; and Paraguay, 530 — the minimum per acre for the latter being 265, and the maximum being S)05, These figures bear out the state- ment of Mr. Leon Mousnier in his Notes Concerning the Cultivation of Cotton in South America, who, quoting an American writer — Mr. Atkinson — says, with refer- 186 SECOND PAN AMERICAN COMMERCIAL CONFERENCE ence to world production: "The fiber of the Indies is short and harsh and cannot be utilized for other than common textiles ; that of China is no longer than an inch in length; that of Africa cannot in every respect take the place of the Ameri- can fiber; in addition, neither the Peruvian nor the Brazilian can compete with that of the United States. There exists, however, one region of the world that may offer competition and produce cotton of a quality equal to that which we (the United States) produce, and that region consists of the upland regions of the Parana and of the Paraguay * * *." The greatest drawbacks to the development of Paraguayan_ cotton growing have been: (1) the lack of sufficient capital among the small individual farmers; (2) the holding of large tracts of land by foreign corporations devoted largely to the cattle and timber industries — these also utilizing a great pert of the native labor; (3) the lack of knowledge of cotton raising by incoming settlers, . most of whom come from regions where the cultivation of this staple is all but unknown; and (4) the uncertainty of sale at a price warranting the use of the land for a perennial crop when other products — of known sale and value — might be raised. To overcome these obstacles the Banco Agricola is making rapid strides, encourag- ing the planting of fields averaging twelve and one-half acres per family, making it a home industry. American farm machinery is needed for cultivating the grow- ing plant; American methods and machinery are required for picking, handling, and ginning the cotton; and American mills are necessary for the utilization of the cotton seed — the demand for oil of the cotton seed and other native products being large locally and in the neighboring countries. Sugar: Not dissimilar to the sugar-cane bearing regions of the United States, Paraguay is adequately adapted to the raising of this product. Figures for 1918 indicate an area of 15,000 acres devoted to cane, this being comparatively small when it is realized that the country consumes all of its domestic production in addition to large quantities imported. In addition to sugar a part of the cane is utilized in the manufacture of caiia, a native rum, and alcohol, used in indus- try. Due to an extremely high tax, however, the manufacture of cana is dis- couraged, as efforts are already on foot to prohibit the use of spirits. More sugar would be manufactured if there were more mills — this requiring additional capital and better transportation facilities, a matter of interest for American manufacturers of sugar-ftiaking machinery, investors, and settlers. With the establishment of the "centrals" system, in vogue elsewhere, Paraguay promises to be able to supply not alone her own needs, but also to export a goodly quantity. When it is realized that thousands of tons of oranges and other fruit rot every year for the want of a market, it may be seen that the opportunity for the installation of fruit canneries, utilizing native sugar, is most promising — particularly so when it is known that preserved fruits are almost considered luxuries in nearby countries, bringing fancy prices. The total consumption of sugar during the year 1914 amounted to 9,757,656 pounds, of which 5,642,595 were imported and 4,115,061 of domestic production. During the same year, denatured alcohol to the amount of 108,613 gallons was manufactured, and cana to the amount of 14,084 gallons. Other Crops: As indication of the diversity of crops of the country, it may be mentioned that in the southern part of the Republic wheat is grown — not, however, in quantities sufficient to supply the domestic demand. Indian corn, oats, alfalfa, sorghum, Kaffir corn, rice, beans, peas and like cereals and vegetables, are raised throughout the country — an important one being mandioca, a necessary element in the diet of the native population. Fresh vegetables are in the market the year around, and it is from Paraguay that the River Plate cities are supplied with early garden produce several weeks in advance of their local truck gardens. Fruits Fruits: No country exceeds Paraguay in the abundance and quality of its subtropical fruits, native in many cases with the trees of the forest. Oranges, man- darines, lemons, pine-apples, grape-fruit, bananas, and other like fruits are found in profusion — with many others unknown to the American market. Of oranges alone, the exports during the nine years, 1910-1918, amounted to 1,314,729,333, or an annual average of 146,081,037, these being valued at point of shipment at from one to two dollars per thousand, or at from five to ten for a cent. The surplus, above home consumption, is lost, as above said, or allowed to rot. With better methods of handling and shipping them, they might be shipped to any point and become a source of immense wealth to the Republic. PARAGUAY 187 From the leaves of one species of the fruit of the country — the "bitter orange"^ — is derived a special product, the Essence of Petit-grain, or Oil of Neroli, for which the United_ States has_ been a steady customer. This essence, made by distillation, is the basis of a delicate perfume, much desired by perfumery manu- facturers and makers of toilet soaps. At present it is largely a home industry. While the amount exported is not large, an increased demand would easily increase the production. During the year 1917, the exports amounted to 135,605 pounds, valued at $215,243. Coifee and Rice: Coffee of splendid quality is now grown in Paraguay — there being cafetals within sight of Asuncion, while many other plantations lie to the north and east. The annual production at the present time reaches about 500,000 pounds. Rice also is grown, in part supplying the domestic demand, there being many localities having natural irrigation and being admirably adapted for this crop. Verba Mate — Paraguay Tea Chief among the special alimentary products of the country, and one for which Paraguay has long been famed is Paraguay Tea (Yerba mate), the exports of which are on a par with hides, timber, and tobacco. This, the pulverization of the torrefied leaves of the Ilex Paraguayensis, in infusion, is the favorite beverage of around 20,000,000 persons in South America — ^particularly in Argentina, Uruguay, Chile and Brazil, besides Paraguay, and of many thousands in Europe. Pleasant to the taste, cheap in price, and possessing remarkable fortifying properties with regard to the digestive, muscular, and nervous systems, its use promises to be extended elsewhere. Numerous at the present time are the inquiries received from parts of the United States regarding this commodity, to the end of using it as a substitute for the alcoholic beverages soon to be displaced in the United States. While growing wild throughout the country — ^particularly in the eastern and northern part — large tracts have been planted, and many enterprises are concerned with its exploitation promising large returns. In recognition of its value and im- portance, the Pan American Union has issued a special booklet describing Paraguay Tea. The exports of this staple amounted during the nine years, 1910-1918, to 70,275,826 pounds, or an annual average of 7,808,425 pounds. Its successful recep- tion in other countries is an earnest of what might be done with this commodity in the United States. It is to be noted that the yerba mate of Paraguay is recog- nized as being superior to all others for the proportions of its active principle, and for its delicacy of taste. Forest Resources The forest resources of Paraguay are extensive, numerous being the varie- ties of construction and cabinet woods, dye, medicinal, and tannic acid woods. The Official Statistics of 31 December, 1917, gave the number of square miles of timber land under private ownership arid exploitation as 200,000— this representing but a portion of the forest extension of the country. From the quality and avail- ability of the timber of this region, it is not to be wondered at that this is the region noted for the past two centuries for its shipyards, providing in great part the tonnage required for the inland and costal River Plate region ; and it has been here that timbermen have cut the beams and lumber that have gone into the construction of the docks and many of the buildings of the cities of the immediate seaboard. Many of the varieties, after the test of water, air, and time, are found almost untouched after centuries. All are available for shipment abroad, and many are comparatively cheap — iso cheap, in fact, that it would seem possible to export certain kinds to the United States for use in the construction of public and private works — such as docks, shipbuilding, railroad ties, telegraph poles, etc., where extreme durability is of advantage. In so doing — thus Creating a constant market — it might be possible to open lines of direct shipping communication be- tween the two countries, lowering freights, and creating a market for other com- modities. One, only — the most important commercially of Paraguayan woods — will be here mentioned: Quebracho. This timber is an exceedingly hard wood, enduring for generations, and in great demand for ship and dock building, railway sleepers, and posts, but best known for its tannic acid content, for which it is in great demand in the United States. Numerous corporations are concerned with its exploitation — including American capital. The amount exported in 1914 was 188 SECOND PAN AMERICAN COMMERCIAL CONFERENCE 13,981 tons (metric 2,204.6 pounds) ; 1915, 20,138; 1916, 21,136; 1917, 29,899, and 1918, 19,096. A recent report of the United States Consul at Asuncion states that the one American company, the International Products Company, plans to ship 20,000 tons direct to the United States during 1919. Cattle It is from the live stock business that Paraguay has heretofore derived her greatest wealth. Today, with its world scarcity of meat, promises much to the country, for nowhere are conditions more favorable than here, with climate, soil, meadow, and cereals suited to the exigencies of cattle raising. Azara — the Hum- boldt of southern South America — after traveling throughout the entire southern portion of the continent, pronounced the Paraguayan plains as, in his opinion, the best he had seen for cattle grazing. Recent statistics (31 December, 1918) specify 46,381 square miles as at present devoted to cattle ranching, and the number of cattle as between 5,500,000 and 8,000,000— a conservative estimate being 6,500,000, or approximately 6.5 head per capita, as against .64 per capita for the United States. Carrying the comparison further, the Paraguayan Division of Agriculture and Live Stock states that 1.65 acres will feed for twelve months and put in marketable condition one animal, or 390 per square mile, making the preceding 46,381 square miles potentially capable of supporting, in round numbers, 18,000,000 head. The importance of this will be better understood when it realized that in the nine so-called gazing. States of the United States, the Department of Agricul- ture estirnates an average of 25.6 acres per animal for 8.66 months, or 25 head per square mile. This last also presupposes grain feeding during the winter months as preparation for butchering. In addition, there is also to be considered the difference in the price of the grazing land — that of Paraguay being purchasable in fee at from one to four dollars per acre. As an earnest of the' importance of the cattle business in Paraguay, since 1915 three large American packing enterprises have installed and are now operat- ing packing plants ("frigorificos") in the country — these being the International Products Company, of New York, and Swift & Company, and Morris & Company, of Chicago — with prospects of others of like character. With their own boats, built in the country, and barges, some of them are now shipping their products to the River Plate ports, there to be trans-shipped to Europe and the United States. In addition there are various concerns engaged in the preparation of salted and dried meat ("tasajo"), and meat extract — -for domestic consumption and for export. The recent increase in exports of cattle and meat products is striking. For the exports during 1917 and 1918 — the reader is referred to the official statistics appearing elsewhere in this report. To further develop the industry, outside help is necessary. More blooded stock is required to improve the herds, animals resembling the well known "Texas steer" of a generation ago. Many of the larger ranches are bringing in pedigreed stock, a recent despatch mentioning one shipment of forty-two bulls imported by a single company. The small ranchman, however, is unable to avail himself of this advantage, and it is to assist him that the Banco Agricola is making a campaign of education for the community purchase and ownership of breeding sires. Likewise, the exacting requirements of the "frigorificos," assisted by a recent cattle and meat inspection law will raise the standards and eventually make unprofitable the raising of other than the mixed or full breeds — the experience of Argentina, Paraguay's neighbor to the south. Better transportation facilities are needed, in- cluding railroad extensions, harbor facilities, and the dredging of certain rivers to afford better barge and steamer accommodation ; the installation of the silo system, and the planting of certain grasses and forage plants for the purpose of intensive feeding and fattening; provision for water throughout the year, such as artificial ponds, puinps, windmills, and well-drilling apparatus; and barb-wire, the use of which is general for fencing. In addition, it would be of extreme advantage — and mutually lucrative — to have American stockmen to join with Paraguayan ranchmen and ranching life the lessons that they have learned through experi- ence on the western plains of the United States. PARAGUAY 189 The foreign trade of Paraguay, 1910 to 1918, inclusive, has been as follows: (valuation in gold pesos — ^$0.9648 U. S. gold.) IMPORTS. EXPORTS. *Giistoms Actual 'Customs Actual Valuation. * Valuation. Valuation. Valuation. 1910 6,409,413 4,916,918 1911 6,694,996 4,735,673 1912 6,350,600 4,235,723 1913 8,119,997 6,630,929 1914 6,149,465 6,149,465 4,684,368 6,668,807 1916 2,405,888 3,127,654 5,616,172 8,890,999 1916 4.679,033 7,020,036 4,861,678 8,851,919 1917 6.098,881, 9,177,446 6,494,802 11,706,012 1918 4,783,183 8,370,570 5,632,093 ' 9,712,932 ♦ The customs valuationa are iixed, and are based upon the values specified in the Tariff Law of 1909. Since 1914, the Bureau of Statistics, realizing that these are too low, has, for the sake of making: the figures conform with market values, given also the actual valuations. The actual balances in favor of Paraguay, 1914-1918, are as follows : 1914 409,342 1915 5,763,346 1916 , 1,831,883 1917 ■ 2.527,566 1918 1,342,362 Total 11,874,498 The principal articles of national production exported during the calendar years 1917-1918 were the following: ANIMAL PRODUCTS. 1917. 1918. Homa Kilos Hair Kilos Hides (cattle) salted Number Hides (cattle) dry Number Beef (preserved) Kilos Beef Extract Kilos Wool Kiloa Tallow Kilos Beef (Jerked), "Tasajo" Kilos Cattle on Hoof Number AGRICULTUKAL PRODUCTS. Starch Kilos Pineapples Number Bananas Bunches Cigars Kilos Peanuts Kilos Peanut Meal Kilos Oranges Number Mandarines Number Tobacco Leaf (mild) Kilos Tobacco Leaf (medium) Kilos '. . Tobacco Leaf (strongj Kilos Paraguayan Tea (Verba Mate) Kilos FOREST PRODUCTS. Copra Kilos Coconut oil Kilos Essence of Petit Grain Kilos Quebracho Extract Kilos Timber (squared logs) Number Timber (sawed) M. Feet Timber (quebracho logs) Kilos Timber (other logs) Kilos Timber (posts) Number Timber (sleepers) Timber (palm logs) Number PRODucrrs of the chase. Furs Kilos Heron Plumes Grams , Ostrich Plumes Kilos , 48,600 62,990 94,751 36,901 181,379 105,625 69,966 87,105 1,987,612 6,000 96,764 £6,924 237,418 224,501 1,033,910 791,514 60,804 43.149 20,014 28.031 1,990 S,456 2,964 7,219 13,139 141,583 23,841 75,380 !69,430,800 80,328,700 15,320,570 18,331,150 6,406,862 6.869.261 1,426.523 1,187,642 110,818 44,575 3,864,860 3.628,436 7,896 133,793 20,767 61,498 36,163 29,899,119 19,096,008 39,492 47,228 1,177 4,533 1,646,081 522,206 38,955,374 47,710,195 47,586 24,980 1,026,066 1,234,717 19,434 11,370 33,369 22.904 860 84 690 PARAGUAY FOREIGT^ COMMERCE 1917 TOTAli 4 ll,E5i,000. OTHER. COU^fTR.IES ■UNITED .SXATE$ Paa/ AMen/o^/r Uv/oa^ Note. — The fieures in this diagram represent the customs valuations, which are much lower than the invoice or actual values. PARAGUAY 191 The order of importance in the foreign trade of Paraguay for 1918 is indi- cated by the following table showing the six principal countries : (valuation in gold pesos— ^.9648). Exports. Imports. Areentina 4,101,865 Areentina 2,479,014 United States 742,608 United States 816,632 Spain 561,059 United Kingdom 611,880 Uruguay 386.580 Spain 288,420 France 298,150 Brazil 253,567 Italy 134,530 Italy 84,865 The official figuresof the United States for the years (calendar) 1917 and 1918, items unspecified, indicate that exports to Paraguay in 1917 amounted to $504,388; and in 1918, to $7(X),S95; imports from Paraguay amounted, respectively, to $97,029 and $140,275. The striking disparity between the Paraguayan and United States figures results in part from the fact that much of the merchandise shipped to and from Paraguay is trans-shipped, or first placed in stock, at one of the River Plate ports, credit being naturally given to the country where transshipment is made. "The United States is now the most important market for Paraguayan hides, though none of them are shipped direct to American markets from Paraguay, but are sent to Buenos Aires for transshipment" (Report of Consul Hamilton Wiley, Asuncion, 12 March, 1916). "A large percentage of the imports credited to Argentina in the statistics are not goods of Argentine origin at all, but are manufactures of foregn origin that are re-exported from that country. It is believed that a rather high percentage of these imports comes from the United States, particularly since orders for American goods are placed largely through Buenos Aires and Montevideo middlemen, on account of the limited direct trade representation between Paraguay and the United States" (Report of Consul Henry H. Balch, Asuncion, published 31 December, 1917). As indication of the classes of articles imported from Paraguay, and credited to that country, the following table shows those purchased during the fiscal years (ending June 30), 1917 and 1918, quantities and values: UNITED STATES IMPORTS FROM PARAGUAY, FISCAL YEARS 1917, 1918. Quantities. Values. ARTICLES. 1917. 1918. 1917. 1918. Chemicals, drugs, dyes, and medicines: Tanning extracts, all other $418 Earthen, stone and ohinaware: Earthen and crockeryware — decorated or ornamented $22 Fibers, vegetable, and textile grasses, manufactures of, n, e. s 15 Hair, unmanufactured — Horse Pounds 8,127 1,996 Hides and skins (except fur skins) : Cattle, dry, 12 pounds and over Founds 28,385 8,876 Sheepskins, dry Pounds 4,714 1,320 India rubber, gutta percha and substitutes for, crude: India rubber Pounds 7,938 3,106 Oils : Yegetable— distilled and essential 63,668 E6,07S Silk, manufactures of: Laces and embroideries 294 Wood, manufactures of S Total $66,003 $69,797 UNITED STATES EXPORTS TO PARAGUAY, FISCAL YEARS 1917, 1918. Quantities. Values. ARTICLES. 1917. 1918. 1917. 1918. Agricultural implements $1,759 $5,274 Blacking, shoe paste, etc 2,702 158 Brass : Pipes and fittings 7,935 All other manufactures of 703 622 Breadstuffs 93 193 Cars, automobiles, and other vehicles: Automobiles — Passenger Number 40 13 20,192 5,025 All other 4,172 3,714 Cement, hydraulic Barrels 4,714 11.959 Chemicals, drugs, dyes, etc 15,050 12,308 Clocks and watches, and parts of ^ 2,754 343 192 SECOND PAN AMERICAN COMMERCIAL CONFERENCE / ARTICLES. Cotton, manufactures of: Cloths: Unbleached Yards Bleached Yards Colored: Printed Yards Dyed in piece Yards All other Yards Wearing apparel — Knit goods All other Electrical machinery, appliances, and instruments: Dynamos and generators Motors i All otlier Explosives: Cartridges, loaded All other >explosives Fibers, vegetable, manufactures of Glass and glassware India rubber, manufactures of Iron and steel: Bars or rods of steel Pounds Cutlery Machinery, machines, and parts of Pipes and Sittings Pounds Sheets and plates Pounds Stoves and ranges Structural iron and steel Tons Tin plates, temeplates and taggers' tin Pounds Tools, n. e. s Wire, and manufactures of All other Lead, manufactures of Leather Manufactures of — Boots and Shoes — ^Men's ... Pairs All other Fairs Malt Bushels Oils : Mineral, lubricating Gallons Perfumeries Silk, artificial, manufactures of Wood: Shooks Number All other articles Total domestic exports -. . Total foreign exports Total exports A study of the preceding figures, indicating the ascendency of the United States in the trade of Paraguay, is interesting as showing the possibilities of the future, with its promised increase of tonnage, securing quicker and more regular transportation. It is to be hoped that the time is not far distant when a direct line may be inaugurated between Asuncion and the United States, with calls at inter- mediate ports. American merchandise is received with much favor. To continue its sale it will be. necessary to maintain sound banking connections between the two countries, have American business men visit the country, for — quoting from the letter recently received by the Paraguayan Legation from an American farmer now established in Paraguay — l"it is not American goods that competitors fear, but American salesmen. ' Most of all, however, the United States must purchase Paraguay's productions. They are required by United States industries, and may be purchased on the ground to greater advantage than in the European market. This particularly will tend to establish and cement the understanding and friend- ship of the two nations, and, more than anything else, will make "dollar exchange" a reality in Paraguay. Finance and Banking The' financial condition of the country is sound. The general depression produced by the breaking out of the European War was of immediate effect in Paraguay, where business was for the moment all but paralyzed. Inactivity reigned in the customs service, the main reliance for fiscal expenses; gold immediately disappeared. But for the prompt measures of retrenchment taken by the Govern- ment, matters might have been serious. The paper currency, exchangeable for gold, peso for peso, at rate of 17.00 (to 1.00), rose in 1914 to 37.00 (averaging 26.00) ; in 1915 to 40.00 (averaging 53.33), falling during 1916 to as low as 25.00 (averag- Quantities. Values. 1917. 1918. 1917. 1918. 6,958 8,931 1,497 2,619 30.295 3,113 3,511 700 11,886 28,458 1,099 4,017 45,946 66,164 7,531 14,513 226,834 133,994 23,887 ^ 23,529 2.296 2,054 10,284 6,677 53,181 83 6,918 1,658 17,011 7,181 6,969 797 11,277 986 17,011 284 1,796 143 6,248 431,212 16,190 2,671 684 659 281,286 19,527 863,581 892 44.452 23,370 2,863 39 4,940 68 9,004 106.909 160,267 6,126 12,646 13,911 15,044 3,480 13,793 6,448 35,838 9,149 • . • . 2,444 618 1,083 2.191 2,116 B.185 1,616 3,570 2,897 7,756 3,242 • •*-•• 6,349 12.100 4,566 1,613 2,613 2,167 1,600 8,000 14,590 41,718 227,065 670,766 60 227,065 670,826 PARAGUAY 193 ing 27.60), and, following the entry of the United States into the war, fluctuating between 38.40 and 31.27 (averaging 33.98), and during 1918 falling from 34.51 to 18.18 (averaging 26.35), closing the year at 19.00. On 1 May of the current year it fell to 17.29 — practically its pre-war rate. . The amount of paper in circulation on 31 December, 1914-1918 (including nickel subsidiary coins), is as follows: PAPER AND NICKEL COINS PLACED IN CIKCULATION FROM 1914 TO DECEMBER 31, 1918. Held By Banks. In Circulation. Total Paper Pesos Paper Pesos Authorization. Year. andNlckeL % and Nickel. % 1914 30,442,019 33.82 59,667,981 66.18 . 90,000,000 1915 49,869,165 43.36 66,140,846 56.64 115,000,000 1916 66.146.466 62.11 69,863,534 47.89 126,000,000 1917 ;.. 65,437,280 52.35 59,662,720 47.66 125,000,000 1918 69.936,946 47.95 66,064,055 62.05 125,000,000 COINED MONEY IN PARAGUAY, 1914-1918, AS OF DECEMBER 81. Year and Value in Gold Pesos. *In possession of: fExchange Office Banks , 1918. . . . 1,463,199 . . . 3.260 283 1917. 1,010,046 1,620,655 1916. 470,348 1,172,632 1915. 757,827 893,951 1914. 757,827 661,270 Total ... 4,723,482 2,530,601 1,642,980 1,651,778 1,309,097 • No account is made of a considerable amount of gold in private hands. tThe Oficina de Cambios, the institution cbarged with the regulation of foreign exchange. OPERATIONS IN FOREIGN MONEY. (1) DRAFTS ISSUED ON FOREIGN COUNTRIES, 1916, 1917, 1918. (Valuation in Gold Pesos.) Countries. 1916. 1917. 1918. Argentina 9,414,264 Bolivia Brazil France ' Germany Holland Italy i Portugal Spain United Kingdom United States Uruguay All others Totals 10,451,204 (2) BUYING AND SELLING OF FOREIGN MONEY. 1916, 1917, 1918. EXCHANGE OFFICE. BOURSE. Purchases. Sales. Purchases. In Argentine In Gold Pesos. In Gold Pesos. Currency. In Gold Pesos. 1916 1,107,111 1,326,615 9,494.877 98,137 1917 1,363,017 1,154,471 10,991,863 31,517 1918 1,874,125 1,384,579 13,849,369 27,931 9,414.264 12,083,069 18,985,785 3,000 2",7U 444 196,963 176,712 145,633 12,196 4 89 24.591 31.913 63.310 1.876 113.635 '66.716 90,374 iw.osi 210,599 188,325 841,484 132.982 207,465 121,648 393.721 791,178 839,714 984 10,451,204 13,601,756 20.195,526 194 SECOND PAN AMERICAN COMMERCIAL CONFERENCE CONDITION OF PARAGUAYAN BANKS DECEMBER 31, 191». Paid Up Capital. Reserves. Deposits. Bancos. Gold. Paper. Gold. Paper. Gold. Paper. de la Bepublica 4,000,000 1,600,363 300,000 1,781,518 44,696,403 Mcreantil del Paraguay 25,000,000 14,100,000 1,464,563 54,710,557 *Aericola del Paraguay 34,590,097 1,734.137 4,600 2,494,328 Espana y Paraguay 8,984,000 880,422 754,636 22,917,717 Constructor 1,977,000 80,000 62,956 tCaja de Crfidito Cs of Great Britain for some years will be employed very largely on lines operating out of British ports and can serve in only a limited degree the trade between North and South America. Fortunately at this critical period the United States has a large and increasing merchant marine. The establishment, of a shipbuilding industry and a large mer- chant marine are two of the few real iDenefits we have derived from the war. With- out ships of the United States the trade between the Americas would now be at a low ebb arid in such a situation the republics of Central and South America would suffer quite as much as the United States, since the latter country is the* largest purchaser of many of the principal products of South .and Central America. Since 1914 the volume of traffic moving between the United States and the Latin American republics has increased greatly. The total tonnage employed in this trade in 1914 could have moved only 60 per cent of the traffic actually moved in 1918. Not only has this trade expanded greatly but doubtless it will continue to expand with the development of the extensive and varied resources of the Latin American republics and with the increasing dependence of the United States upon these countries for many important foodstuffs as its population grows, and for many iniportant raw products, as its industries expand. Direct routes are a prime requisite for a well-balanced and developing trade between the countries of the two continents. There should be less triangular rout- ing than was the case before the war. The many bottoms that bring Brazilian coffee, rubber and manganese, Argentine wool, hides, linseed and quebracho extract, Chilean nitrate and copper and Peruvian copper, vanadium and tungsten ought to be available for return cargoes of products from the United States. Direct ship- ping would not only provide for return cargoes but should reduce freight rates, costs of insurance and time in transit on outbound cargoes. The shipping routes of the world are being laid out on new lines, largely as a result of the shortage of shipping caused by the war but partly also as a result ■ of the Panama Canal. The Canal was opened only a short time before the war broke out and the full effects of the changes that will result from its use have not yet been felt. Chairman Hurley of the Shipping Board has recently requested the Secretary of Commerce to suggest a number of shipping services urgently required for the maintenance of American trade. The first suggestions, it is interesting to note, were for several new services to and from Latin America. It seemis to me that in addition to the services now maintained by private companies it would be well if the Shipping Board would establish at least one fort- nightly freight and passenger service between New York and Venezuelan and Co- lombian ports, one fortnightly freight and passenger service between New Orleans and Venezuelan and Colombian ports via Jamaica or other islands of the West Indies, a fast monthly freight and passenger service between New York, Rio de Janeiro, Montevideo and Buenos Aires, and a slightly slower monthly service between New York and Buenos Aires with calls at Pernambuco, Bahia, and Santos, as well as Rio de Janeiro and Montevideo. The steamers employed in the services to Colombian and Venezuelan ports might well be of the "Turrialba" class of the United Fruit line, that is of about 4,500 tons gross register and of 14 knots speed and built especially for the tropical trade. The fast steamers employed on the New York-Buenos Aires service should be at least as good and as fast as the "Vauban" type of the Lamport & Holt line, with which they wouldhave to com- pete. The two monthly services between New York and Buenos Aires should be so arranged as to provide fortnightly sailings out of New York and Buenos Aires. In the matter of a through passenger service to the West Coast, the service instituted by W. R. Grace & Co. during the war should be extended as rapidly as SHIPPING AND OTHER TRANSPORTATION 229 possible so as to provide fortnightly sailings in both directions. This service would not interfere with that offered by the ships of the Peruvian and Chilean companies. There would be sufficient traffic for all these lines and the trade of the West Coast countries would at the same time be better served. There is need for an inter-island service in the West Indies, which would make it more convenient for travelers to go from Cuba and Santo Domingo to Porto Rico or from Porto Rico to other islands in the West Indies. Travel in the West Indies would be greatly facilitated if a circular inter-island service of small steamers were instituted. It would be very desirable also if the principal routes between United States ports and those of South America were made to cross at some convenient port in the Caribbean. For instance, the port of St. Thomas would make a splendid focal point for lines between New York and East Coast ports and for those operating between New York and Venezuelan and Colombian ports. Under such an arrange- ment passegers bound for Venezuela or Colombia on a north bound steamer from Buenos Aires could transfer at St. Thomas to a south bound steamer proceeding to the north coast countries without going all the way to New York, as is neces- sary at present. This opens up a big field for discussion and it is impossible in a brief address to do more than to call attention to some of the more striking phases of the shipping situation. Much good will be accomplished if the exporters and importers of the Pan American countries will give the Shipping Board and the Department of Commerce their views as to desirable services and routes. I am confident that the discussions of this session of the Pan American Commercial Conference will yieltj many valuable suggestions along this line. PAN AMERICAN SHIPPING AND COMMERCE By George L. Duval, of Wessel, DtrvAL & Co., New York (Delivered at the Morning Session of Wednesday, June 4) Pan American shipping, meaning transportation facilities for Pan American commerce, is a segment of a larger subject now engaging public attention, a segment which in the briefest treatment cannot be fairly considered apart from the text, as the conditions that concern shipping in general bear upon its integral parts and have undergone a radical chatige in the course of the war. The Pan American service, like others, has hitherto measurably depended on foreign tonnage for transportation, whereas hereafter American tonnage will depend upon Pan American and other commerce for employment. The problem is to hold or to find the commerce. Ships to commerce are as food to life, yet they do not lead but follow; they are servants, not masters. During the dark days through which we have passed, while the extent of commerce has been measured by the ships available for its transportation, an undue prominence has a^ached to the element of tonnage, sub- ordinating and often ignoring the factors upon which commerce primarily depends. Even before the war claims were made in favor of a National Merchant Marine on behalf of commerce that would not bear analysis. It has been asserted time and again that our foreign commerce languished for the need of ships of our own to serve it, and that the freight paid to foreign tonnage was an economic loss. As a matter of fact there was no dearth of shipping for the world's commerce before the war, nor any undue discrimination against ours. It is true that our outward business was subjected to higher freight rates in general than European commerce incurred, but this would have been the same had we had an adequate fleet of our own as free as other fleets in its operation, since there is no sentiment in ships or ship owners and they seek the most profitable employment procurable. Where tonnage congregates in greatest volume competition fixes the lowest rates, and as Europe has offered a broader and more constant market for the product of foreign countries, homeward tonnage has headed that way and been more available there for outward voyages. TJie economic loss in freight disbursement, moreover, is not the payment made for the service but only that which remains after the cost of operation is URUGUAY rORElGK eOMMERGE 1917 TOTAL » 134,916,000. Pan ^Mf/^/cAA/ C/A//o/r !- 1 ' - Ul " U i J SHIPPING AND OTHER TRANSPORTATION 231 deducted, for it is clear that labor, supplies and port charges pay no heed to the carrying flag and in normal times absorb all but a small percentage of the freight money, the margin for long and recurring periods being expressed in red ink; in other words, a minus quantity. Under prevailing conditions and under the pro- visions of our Navigation Laws, the cost of operating American ships has been higher than the cost of operating foreign^ tonnage, so that, as in the case of any commodity that we need, we have bought freight room where we could procure it cheaper than we could provide it ourselves, and our capital otherwise invested has undoubtedly brought to us greater tribute than we have paid. In order to present a true perspective of the condition that confronts us, it is important to quiet these fallacious theories. It is not to depreciate the value of a Merchant Marine of our own, which is inestimable as an adjunct to the Navy and in times of stress to the national defense. We have, moreover, within us the elements to make it commercially valuable, but the possession of the ships or the possession of the ships and the money does not of itself provide commerce for their employment. Commerce is not a ready-made quantity but the fruit of long, diligent and consistent effort on the part of different factors working together, not each for itself, but mutually helpful in organized and coordinated form. "Trade follows the flag" is the slogan of laziness, for it is not true without the "push" behind the flag, of which our people are capable when determined. It is, of course, soothing to national pride for merchants engaged in foreign com- merce to see its subject matter carried to its destination under our flag, but it is a delusion to believe that its value is enhanced an iota thereby or that buyers are thus made more eager for it. Presently, and as a result of the war activities of Government, we shall be endowed with a vast fleet of vessels, constituting a formidable Merchant Marine of our own, with a still vaster potential fleet behind it. The distinguished Chair- man of the Shipping Board, at present controlling the ships, has said that the Government looks to those engaged in foreign commerce — presumably the mer- chants who have established their branches abroad — to develop employinent for them, but bricks are not made without straw. It is very much to be hoped th'at the class upon which Mr. Hurley calls will multiply their number and give fitting represen- tation to our commerce in Pan American markets and elsewhere to correspond to the standard of representation established by competing countries. We may rely upon the enterprise of our people, so dominant a feature in the national character, to fulfill this requirement if it is given the encouragement and aid to which it is en- titled on behalf of the prosperity of the entire country, but let such expansion reach the ultimate limit and even then the combined resources of the merchants themselves will not be adequate to care for such a movement in commerce as our facilities and our needs oblige us to look for. Merchants must have the cooperation and very active assistance of manufacturers and bankers, the same as merchants of other countries enjoy, and present a solidarity of effort by the three distinct ele- ments, each operating within its own function and displaying an esprit de corps. The cooperation of the manufacturer is essential in adapting his product and the details of shipment to the requirements of the markets sought and to bring his costs or his price within the reach of foreign competition. He should realize that outward American commerce does not consist of any one item or restricted group of items, but of all that our industries produce in excess of our own needs, in order to maintain in activity the great industrial system of the country. The sepa- ration of any important product from the rest in the plan of distribution is to injure the others, particularly so when in such procedure alien merchants are put upon a preferential or even upon an equal footing with national merchants, which is not an unique procedure of our manufacturers in their haste for results. The alien merchant so favored in a staple non-competitive American product uses it to assist the disposal of competitive articles of national origin to which he owes allegiance, and when the article itself comes into like competition the discrimination shown against the American product is natural and to be expected. The invasion of bur hearthstone by many of the European firms which have beguiled our manufacturers in foreign markets bodes no good to bur position. With interest centered in their national commerce it is no premium on prophecy to predict their attitude towards ours at the time when it will most need loyal service. It is safe to say, however, that it will not tend to develop burdensome volume or a tax upon the carrying capacity of our ships. To the banker commerce at large looks for the facilities which are due to it from the funds of which he is the custodian, not only in assisting the extension 232 SECOND PAN AMERICAN COMMERCIAL CONFERENCE of credit on the shipments of our merchandise but also in helping healthy enter' prists abroad, both public and private, for it is not the only function of the mer- chant to cater to the needs of his foreign clients, but also, by developing reciprocal markets for their p.roducts and by encouraging their local enterprises, to augment their needs and purchasing power ,and hold their good will. It is in this way that our principal competitors gained their ascendancy and hold upon foreign commerce, and it is only in this way that we can shake it and secure for ourselves the pro- portion that we are entitled to. In professing their desire to help foreign comimerce, those banks and financial institutions that either establish commercial departments of their own or make affiliations with distinctive commercial channels for exclusive or at least preferential access to their _funds are not only ultra vires in procedure but inimical to the cause. They likewise impair their own fiduciary standing by identification with outside or collateral organizations, and thus, reaching for extraneous benefit, disregard the ethics of their calling and reflect upon its dignity. The tendency in American practice to ignore precedent, however successful, and to hew out a short cut or an easier way of its own, serves only to hamper and delay progress in developing foreign commerce, and unless the light of example shines upon its procedure and it takes the illuminated road, it is to be feared that Pan American commerce and all of its sisters and brothers instead of seizing the ships as they are available and clamoring for more will continue to languish, and the facilities that we enjoy will be doing for others what they should do for us. The normal balance of trade largely favors the South American Republics, but instead of acquiring credits here it is remitted to London because there or in other parts of Europe they get the accommodations they need in their process of development. The significance of these balances is lost upon our magnates of finance while shrewdly appreciated abroad. The depositary enjoys much the same advantage that our banks enjoy from balances carried by their clients upon which no interest is paid, but, loaned to other clients and often to the depositors them- selves, gain, the market rate of interest. These balances, coming from all directions, have made Sterling the world- wide stable measure of value, and so it will remain while these conditions con- tinue, and impose a tax upon all of our foreign commerce through the medium of exchange. The supremacy of Sterling, menaced during the war by the enormous credits established in England and the drawing power they furnished, was saved by an expedient adopted Here resulting in the depreciation of our own currency and a surcharge upon all of our imports. To indefinitely subject all our foreign dealings to a Sterling control or to pay a perennial tribute to it is intolerable, yet for any- thing that the wisdom of our financiers has yet adopted or projected, dollar ex- change in a broad or practical sense is but a pretty and alluring figure of speech. There is, of course, more exchange in dollars than there was, but, save In rare instances, it involves a Sterling conversion and the wise merchant prefers to do this for himself rather than leave it to the bank. In the conduct of commerce, and therefore in providing employment for our ships, no item is insignificant. In ante-bellum times the Pan American commercial situation was sound and progressive. The phenomenal impetus given to it by the war developed propor- tions that exceed any standard of expectation for the future, as it was chiefly due to the absenco of competition. It has, however, given our friends in the southern Republic information on what we can do to serve them, arid it has acquainted our manufacturers with the' needs of our Southern friends and how to meet them. We may accordingly hope that with enterprise and effort to match that with which we will come in conflict a good proportion of the increase may- be held. We may certainly feel assured of the good will of our Southern neighbors and their • earnest desire to promote closer and more ample coinmercial relations with us. Polite and scrupiilously observant in the amenities of intercourse, they are none the less practical. While appreciative of fine words and entertainment, they look to us to express our disposition in deeds, and unless we meet their expecta- tion in this respect we shall continue to be spectators of the march of events, and the holds of our ships will gape for cargo that foreigners alone can supply because of supineness and complacency on the part of delinquent members of our body commercial. SHIPPING AND OTHER TRANSPORTATION 233 OCEAN TRANSPORTATION By Senor Jose Richling, Consul General of Uruguay at Large, New York. (Delivered at the Evening Session of Tuesday, June 3) In the process of development of the foreign trade of any country three main or basic factors must be taken into consideration. By order of precedence they are: (1) Adequate postal and telegraphic communications; (2) ocean trans- portation; (3) proper banking facilities and credits. It is of importance that ready means of communication be established not only by means of cable but by a reasonable fast and reliable mail and passenger service. No less significant are adequate banking ^arrangements which should allow the exporter and importer to negotiate his commercial paper on the same foot- ing and equal terms with his foreign competitors and at the same time should tend to stabilize exchange as much as possible. But in the actual and underlying circumstances of Fan American trade expansion, such as they have been created or influenced by the war, I consider ocean transportation to be the pivot-factor and if you will permit me I shall make a few remarks on the subject. By reason of the emergencies of so varied and complicated a nature which have arisen from the war I have been compelled to take a greater interest in all the factors which constitute international trade than I usually do in normal times. The experience thus acquired has allowed me to arrive at the following conclusions. The main requirements in the transportation of the merchandise contracted for delivery in order that the exporter and importer may develop their trade must be, I believe, assured of the following: (a) Regularity and frequency of shipping opportunities (sailings) ; (b) stable rates to permit him to figure his business ahead; (c) some assurance that his cost of transportation (freight rates) will bear as close a parity as possible to the cost of transportation of like goods from competing European countries. Regularity and frequency of service is assured the European manufacturer and exporter by reason of his older established business and the freight lines which have been built up through this long established export trade. With the merchant marine built in the emergency caused by the European War, which will have to be turned into commercial service, the American merchant and ex- porter has a better opportunity than ever before for a regular frequent service and if advantage is taken of his opportunity to establish export relations with Uruguay it is fair to say that his transportation facilities will come nearer equal- ing those of his European competitor's than ever before. Excepting in abnormal periods in the shipping business of the world the exporter of the United States has had the advantage of fairly equal rates to those enjoyed by his European competitor, but, during abnormal periods, when the world's demand for ships was in excess of the supply, the American merchant having no established American lines such as those in effect from European coun- tries was to a greater degree dependent on what is known as tramp tonnage in his trading and in consequence, in these abnormal periods, had to pay freight rates, which in effect, made him bid for tonnage in the open market. This, in many cases, at such times destroyed the equality of rates from America and Europe. With the avowed intention of the United States Shipping Board to use the tonnage built in the recent emergency for the development of regular trade routes the American exporter will be placed more nearly to an equal position to the exporter from European countries in that his transportation lines will be bet- ter established and more likely to be maintained even in abnormal times. Under normal conditions freight rates from European countries were more stable than from the United States for the reason that the shipping lines worked in concert to maintain a tariff of rates quoted by practically all of the competing lines. I believe it is to the advantage of the exporter that there be stability in the rates quoted by competing lines from the United States and this can only be done, I think, by the American lines working in concert on the question of freight rates and some form of working agreement between lines in any given 234 SECOND PAN AMERICAN COMMERCIAL CONFERENCE trade should be recognized and approved by governmental authorities. • This does not mean that freight rates should be necessarily set or controlled by govern- ment, as any attempt to fix or control freight rates by government might tend to destroy the flexibility in rates which tends to assure to the exporter the ben- efit of equal freights with his European competitor. > With regard to northbound traffic, conditions are somewhat diflferent. The s;hipments of Uruguayan raw products, wool, hides, etc., more and more re- quired by the industries of the United States are dependent on world market conditions for three commodities which are less stable and subject to greater fluctuations than those relating to manufactured goods. However, with the in- creased service southbound requirements of the northbound trade will be well provided for as the volume of merchandise from Uruguay to the United States is much less than that from the States to Uruguay. I believe, gentlemen, that our motto should be — ships, ships and more ships. If we succeed in securing enough tonnage to take care of our trade everything else will be settled without great difficulties. If the bottoms are there at our dis- posal as a powerful and suggestive invitation for the expansion of inter-American trade, I know that you, with your usual push and energy, will see to it that they are properly and efficiently, used for the benefit of all of us. FREIGHT CARGO Suggestions Made By Sr. Alberto Acuna, Shipowner, of Valparaiso, Chile. I. Steamships for South America. — (a) Those from the American ports on the Atlantic Ocean; (b) those from same on the Pacific Ocean. These ships should be iron and not wooden, with modern facilities for loading and unloading, but with a daily capacity not exceeding SOO tons per ship, inasmuch as the docking facilities in most of the South American seaports are not in a position to handle more than this amount at present. II. Sailing- Vessels. — Inasmuch as those vessels have generally favorable winds, as far as the Panama Canal, it would be advisable that the United States Government should see that a fleet be stationed at Panama, or to foment the organization of American private owned concerns of such a nature, so that those sailing boats could, under their care, aid them when necessary during any part of their trip to the different South American ports on the Pacific Ocean. But if this arrangement could not be feasible at present for any reason, it should then be recommended that said sailing vessels should carry special gasoline propellers to be used for any emergency caused by lack of favorable winds. These sailing vessels to be either of iron or wood, but well built, so that the insuraxice premium should be the same for both of them. III. Panama Canal Tolls. — The present duties charged by the United States for the passage of ships through the Panama Canal should be reduced SO per cent in the case of steamers and 60 per cent in the case of sailing vessels engaged in the foreign commerce between the United States and the South American coun- tries, or between apy of the ports of these, and whatever be the nationality of said steamers or sailing vessels. IV. Reduction in freight tariffs. — ^At present the U, S. Shipping Board charges a fixed price per ton carried on ships going from the United States to South American ports on the Pacific side; and per ton for those coming from the South American ports on the Pacific Ocean to the United States. It should be earnestly recommended that a reduction of 30 per cent be made in said freight tariffs. AVIATION 235 AVIATION AVIATION AS AN AID TO PAN AMERICAN COMMERCE By Augustus Post, Secretary of Aero Club of America. (Read at the Morning Session of Wednesday, June 4) Commercial aviation has started by leaps and bounds to exceed the tre- mendous development made during the time of war, which put aeronautics twenty years ahead of where it would have been without this extraordinary necessity and stimulus to inventive genius- The strides of the last few months have seen the flying boat cross the Atlantic ocean, flying 3,925 miles in fifty-five hours and thirty- three minutes, with a non-stop flight of 1,200 miles from Newfoundland to Horta. The daring Harry Hawker might have flown directly from Newfoundland to Ireland if he had not made a slight change in the construction of his motor. Three British teams are ready on the shores of Newfoundland to make this flight and there is no reason why they all should not be successful. But all honor to Com- mander Read and his splendid crew who were first to fly across the Atlantic and bring the glory to the American Navy. The United States Army not to be outdone are planning a trans-continental flight from the Atlantic to the Pacific, flying 1,500 miles without a stop before crossing the Rocky Mountains to complete the 2,750 fniles from coast to coast. Flights have been made by British Army machines from London to India, a distance of 5,800 miles, and flights are projected from London to Cape Town via Cairo, and exploration parties are already laying out landing fields to insure the success of this flight. Other machines have started from London to fly to New Zealand over the islands of the East Indies and a great system of world routes have been laid out, uniting Europe with the Orient, and plans are being perfected in England by the builders of the large rigid dirigible airships by which every important section of the globe will be within ten days by air from London. These large dirigibles today have a capacity of over 60 tons and can cruise at a speed of nearly 70 miles an hour for a distance of nearly 8,000 miles, and one of them remained in the air for 4 days, 8 hours and 55 minutes. This is the type known as the R-33 and R-34, built for the British Navy, and one of these airships is now preparing to make the trans-Atlantic voyage from England to the United States. Plans have already been projected for the building of huge dirigibles that will contain ten million cubic feet of gas, be a thousand feet in length and Piave a cruising radius of over twenty thousand miles, or sufficient to carry them around • the world. The Vickers Company of England are prepared to furnish aerial liners to carry 140 passengers across the Atlantic at a cost of two million dollars each, and they have worked out the entire problem of operation from a financial stand- point. Besides these large dirigibles trans-atlantic type of flying boats and large aeroplanes like those built by Handley-Page in England, carrying forty passengers, Henri Farman in France and Caproni in Italy, who is building machines to carry 75 jpassengers, there are splendid types of flying boats and landplanes suited for maintaining regular schedule service on the rivers which abound in the Latin re- publics of Central and South America, and for flying over the pampas and plains as well as in the mountainous district along the Pacific coast, where the aeroplane will perform the functions of an incline railway or elevator, being able to rise from the seacoast to the cities located at high elevations on the mountain side. The Curtiss Aeroplane Company are sending Mr. Orton Hoover with flying boats, who will make a trip from New York City to Buenos Aires, flying down via Florida, Cuba and the islands of the West Indies along the coast of Venezuela, Brazil to Rio Janeiro and then on to Buenos Aires. The actual demonstration of the value of aeroplanes is the most convincing argument that it is possible to make, and in countries where transportation and inter-communication by steamship and railroad are difficult, the advent of aircraft will produce changes undreamed of in commercial development, and we must realize that besides being of inestimable value for mail and express transportation as well as the carrying of passengers, they will be of still greater value for commercial and scientific exploration, surveying, mapping and all geodetic work, besides being an unequalled factor for sport and pleasure. 236 , J SECOND PAN AMERICAN COMMERCIAI, CONFERENCE In the Second Pan American Aeronautic Convention and Exhibition at Atlantic City which has just closed the representatives of the Latin American re- publics who were present expressed their deep appreciation of the opportunity afforded to see all of the latest developments in aeronautic science, including; radio direction finding apparatus, radio telephone and audio-frequency communicating systems as well as the latest instruments for navigating the air, including the Sparry automatic pilot, gyro-turn indicator, "aero taximeter" and instruments devised by Prof. Charles Lane Poor for computing latitude and longitude by means of a cir- cular slide rule instrument. One of the jnost important developments for the pro- motion of safety in aeronautics was a series of parachute contests conducted in order to 3emonstrate the practicability of the use of parachutes in connection with aeroplanes, and it was clearly shown that there are several splendid types of para- chutes than can be relied upon under all conditions. We can easily foresee that within ten years aircraft will be the most powerful single factor in developing the Latin American Republics economically, socially and commercially. The tremendous strides forward made in aeronautics open the most wonderful possibilities for the employment of ingenuity, genius and skill and busi- ness opportunities as great as have ever been created by progress in important lines of human endeavor. There are problems of engineering as huge as have been solved by Goethals and other master builders, judicial and legal questions to be decided upon as stupendous as a statesman was ever called upon to solve, possi- bihties for the development of international relations greater than were ever con- ceived; problems of transpprtation to be solved by the application of aircraft as complex as have ever confronted economists, and opportunities to gain distinction dazzling enough to satisfy the most ambitious. THE VALUE OF AIRCRAFT IN COMMERCE By Captain Chas. J. Glidden, Am Service (Read at the Morning Session of Wednesday, June 4) It has been my privilege in life to have been actively connected with the de- velopment of the telegraph, telephone, automobile, and aeronautics, and with your permission, for the purpose of showing briefly that the development has exceeded man's greatest predictions, before taking up the subject of aviation I will cite a few incidents in which I was particularly interested. The Telegraph. — When the British cable between Vancouver and Australia was completed an electric circuit of communication extended around the world, His Majesty, King Edward, exchanged congratulations with officials in Australia via the Atlantic Cable, the land wires across Canada, and the New Pacific to Australia, but did not send the message around the world. Thinking it a rather unique idea to send a message to myself around the world, I did so from my home in Boston addressing the telegram "Glidden, Boston, via Vancouver and Australia." When the message arrived at Vancouver, the cable being in the hands of the con- tractors, it was delayed twenty-four hours but finally sent on to Australia; thence sent on to London via Suez and arrived in Boston thirty-six hours after it had Started. This was the first message sent around the world as acknowledged by the Directors of Telegraph of Great Britain. Later the presidents of the two telegraph companies in the United" States, sitting at either end of a platform not much wider than this, sent a message from one to the other around the world which was trans- mitted in two and one-half minutes' time. When the clock struck twelve in the Fiji Islands, December 31, 1906, I sent a telegram of Happy New Year's Greetings to the Boston Globe, Boston, Massachusetts — 8,000 miles away — which arrived in two and one-half minutes, or sixteen hours fifty-seven and one-half minutes befofe it started, on account of the difference in time. The Telephone. — Forty-two years ago, fifty-five miles from Boston, I con- ducted a successful long distance talk with Prof. Alexander Graham Bell, inventor of the telephone; later obtained the first subscriber to an exchange system in tlie world, built the first long distance line, and twenty-nine years afterwards with 1200 other gentlemen in Boston conversed with parties in San Francisco, the articu- lations being perfect. Motor Transportation. — From 1901 to 1908, eight years, I devoted nearly all the time driving the automobile twice around the world — in thirty-nine countries, AVIATION 237 over 46,000 miles. South American countries were on my program, but a visit prevented on account of the war, and these countries I hope to visit by airplane. Transportation in nineteen years reached a perfect stage and did much toward winning the war. Aeronautics. — In 1908 ballooning was the greatest of sport and later flying came forward. If you ever knew, you may have forgotten that you have here in my friend. Honorable John Barrett, your Director General, a real, live aeronaut, for it was my privilege to pilot him on a balloon ascension from Springfield, Mass., in the early days of the sport. He was certainly a live and interested passenger, and when he visits South America again it will be by Airplane. The Air Service of Today- — The Atlantic has been crossed by Airplane; the .'American Continent by the southern route — 2,321 miles — four times, once in 19 hoursand IS minutes-flying time; and will be again soon from New York to S'an Francisco in less than 35 hours with probably one stop. Do you realize that while the fastest trains are running from Chicago to New York you can fly from Peru, Ecuador, Bolivia and all points north of the Amazon to points in the United States? And that while the fastest express train is running from' the Rocky Mountains to New York you can fly from nearly every important city in the South American Republics to the United States? This alone enables you to partially estimate the value of Aircraft in connection with commerce. DEVELOPMENT OF AVIATION IN THE UNITED STATES By Captain Max'L. McCullough, Air Service, U. S. A. (Delivered at the Morning Session of Wednesday, June 4) Mr. Director General, Ladies and Gentlemen: I will endeavor to be very brief indeed on account of the lateness of the hour and will simply limit myself to outlining to you a few of the things which I had hoped might have been brought out by Major General Menoher, Chief of the Air Service'. Some of you may know, as I know, that in South America there is being carried on today a great deal in the line of commercial aviation. Already in some of the countries mail routes have been established and in some of the larger and more important countries of South America well developed schools for the training of aviators are now in progress. I want to bring out today and give you for your consideration, those of you especially who come from South America, the thought that in the future develop- ment of aviation in your country you may very well look to the United. State's as a field from which you can get material and if necessary instructors and personnel for carrying out this great work. In just a very few words I want to outline the de- velopment of aviation in this country up to now. As you all know, some fifteen years ago the first flight in heavier than air machine was made, an American invention, and some three years later the first public flights were celebrated near this city. They were successful. The plane con- formed to the government specifications and was bought and paid for by the United States. Then occurred a very surprising thing, as we look at it now, and that is that in the next eight years the appropriations of this government for avia- tion purposes amounted to less than one million dollars. During this time the Governments of Europe, seeing the military possibilities in the airplane, did a great deal to advance the design and manufacture of the heavier than air craft. The United States was in the war about a year and a half. One month after the United States entered the war ten million dollars was appro- priated for aviation. During the next month thirty million dollars was appro- priated and during the next month, 'v\ July, 1917, one hundred sixty-four million dollars was appropriated for aviation. 1 have not time to go into any detail about the accomplishments of the Army Air Service by the expenditure of this money. I will say, however, that the Air Service of the Army, when the armistice was signed, was cornposed of one hundred ninety-thousand men — ten thousand flyers have been trained in this country. They had flown almost one million hours in the air and had_ covered approximately sixty- five million miles. The accidents resultmg in fatalities were lower in percentage than those in any other country in the war. 238 SECOND PAN AMERICAN COMMERCIAL CONFERENCE Sixteen thousand wonderful high powered Liberty airplane motors were manufactured in 1918. The United States did not attempt to manufacture on a large scale the small single-seater fighting plane, the "scout" plane as it is some- times called, used over the western front, but it did go in and specialize on the manufacture of the larger weight carrying machines, machines used for bombing, reconnoissance, etc., in time of war and which now are the type of machines that are useful for commerce. _ At the time the armistice was signed twelve hundred of the deHaviland Four machines were being manufactured per month. This will give you an idea of some of the achievements of America in aviation in war times. A large industry has been built up, many hundreds of men have been trained in design, in manufacture and in advanced flying itself. I wish to bring this before your attention, that in the future when you need aviation material, such as needed to establish aerial mail routes, passenger routes, you will look to this country and to its manufacturers with a full understanding that they have already developed several types of the larger machines which are most useful in this work. I think that I can say on behalf of the Air Service that the Air Service of the Army is in favor of and is heartily in accord with the development in every way of commercial aviation, and looks forward to the time when softie of the ijrophecies spoken of by Secretary Post may be true. I feel sure that in the coming years you may see in South America very much more activity on {he part of the Aircraft Association of this country than you have in the past. So far, as a country, we have allowed England and France and Italy to take their airplanes down to you first and to dennonstrate what could be done and naturally you will turn to them for a certain amount of material, but I feel sure that soon our own manufacturers will be there with their representatives and with their planes and will be able to offer you something at least as good and possibl]- better than any of the countries from^ the other side. TRADING METHODS 239 TRADING METHODS COMMERCIAL ETHICS By Dr. Burwell S. Cutler, Chief, Bureau of Foreign and Domestic Commerce, Department of Commerce. (Read at the Afternoon Session of Wednesday, June 4) It has ever been true that no community of action can be brought about be- tween two or more men without a community of interest. In the absence of an incentive truly mutual, even if not mutually equal, cooperation lags and active re- lationship between the two parties dies out. Commerce, defined as an exchange of values, does not eventuate between two traders when one of them can find no value for himself in the transaction. Or, having chanced a trade in the hope of finding profit and then being disappointed, he will not continue to trade in that particular direction. Repeat indentures, whether between individuals or between nations, depend wholly and exclusively upon an equity of satisfaction continuously felt and frankly acknowledged. Although this is so obvious as to be almost trite, yet we must be ever and always reminded of it when we discuss commercial relations with other nations of the great Pan American Union, because traders North and South are likely to be thinking of orders only, the passage of merchandise in volume, and not the spirit which createsthe trade. There is a belief amongst the cynical ones of commerce that the hungry buyer will favor with his orders any business house or nation which quotes low prices regardless of the seller's lack of. known reliability- I have heard it said that in the Far East particularly only commercial speculators, adventurers or pirates can do business because they expect to capture from each buyer dne order only and are willing to quote any low price on any set of specifications desired, knowing perfectly that their goods are inferior and will be a disappointment on arrival; in other words, it is the policy of commercial trickery. The cynic who thinks such methods are necessary in any part of the world, simply because its people want inexpensive goods, is not only an ignorant of economy but totally deficient in sales- manship. As for his morality, he might just as well propose to commit perjury in a court of law ; one deception is as bad as the other. But, of course, we are to think primarily of the well-established business man or his concern whose object is to build up and maintain a continuously agreeable and profitable tra'de. HJe knows instinctively that he must have a satisfied customer all of the time. The initial expense of finding the reliable customer, whether he be buyer or seller, frequently adds so much to the overhead cost of the first transaction that little profit remains, and yet he has foreseen this and is prepared to accept it in favor of repeat business free from contingency. Sometimes adverse conditiohs govern for a long preliminary period; for instance, the financial state of a foreign country may make the opening of trade depend on financial aid to the buyer, either in the form of loans or of merchandise consignments; for a year or more, this concession takes at least six per cent bodily out of the profits. But our far-sighted merchant consents, when able, because he is building up successful trade relations and is not scheming for one or two profitable orders ; he is not making a raid on. the market; he is disposing of his output in the years to come. In the organization of their sales forces the largest and best concerns of the United States — and this is equally true of like concerns in South America — do not demand of new commercial travellers a great ^eaf of orders on their first trips regardless of consequences; what they do require is a showing on subsequent trips, a constantly growing clientele on the firm ground of satisfaction and confidence. Indeed, I have known salesmen to be summarily dismissed by such concerns for persistently overstocking customers, on big orders regular in every way but too forcefully stimulated. The mere writing of an order, even if great ingenuity and energy is required to overcome competition and the buyer's reluctance, is not in itself a com- plete commercial victory. The wisest traders make sure in their own minds that the buyer, if he be a dealer, can successfully sell the goods to the consuming public, or they calculate in advance the consmner's satisfaction when selling direct. Further, it is the custom of some expert merchants to confer with the customer's bank or VENEZUELA FOREIGN* OOMMERCE 1917 TGTAlr * 46,094,000. OJHER. COUNTRIES ♦ G8,0O0 NElHERLiANDSl OTJIEK. eOUNTRJESi *ZT6,000. ITAIiTJT- Pan Am£/?^ca// i/AZ/o/v TRADING METHODS 241 Other financial supporters for the frank purpose of providing against any possible chance of failure to meet the account on date of maturity. This is, of course, with the consent of the buyer whose own peace of mind and future security is thereby safeguarded. I do not advocate such a measure as indispensable, for often it would have the air of being too patronizing ; it is called for only when both sides to the bargain agree to thus co-ensure their joint risk. Not long ago a great and generous South American merchant selling to one of his best customers in this country provided in this way for the possible extension of his account against the North American and thereby saved both himself and customer from imminent bankruptcy when the war-time restraints on production of non-essentials put the Nprth American tem- porarily out of business. It serves merely as another proof of the fact that the great operators of Latin America have no superiors anywhere in the world when it comes to the real statesmanship of commerce. Indeed, we North Americans have some- thing to learn from the worldly-wise veterans of the southern hemisphere. And so, as Secretary Redfield said yesterday, order-taking is not the final word by any means. One of the best salesmen that 1 ever knew almost never wrote an order, but he was almighty good at finding out what his friend, the buyer, actually needed in the way of machine belting and then inducing the buyer to write out his own order and send- it in by mail. Many times he procured for the buyei belting of a make quite different from the one turned out by the factory which he represented. He called himself "trade developer" and his concern "the service station." When the conversation opened up with the distracting inquiry "how cheap?" he usually replied: "Do you want it by the kilogram or the meter or the texture — or by my talk? Any way suits me, but not my texture against the other fellow's kilogram." There is a world of good advice in that to any Latin American who prefers a low price to anything else, and gets it — ^but gets little else. In brief, the responsible concerns of North and South America on whom we depend for Pan American solidarity practise a far-sighted system of foreign trading designed for a term of years and predicated on the smiling satisfaction of their cus- tomers ; speculative order-taking has no place in their program. If. must also be said that our South American brothers should prefer their trade relations with North American houses of established high repute, if they want the certainty of fair treatment. For those concerns only are the ones which know they must protect their investment and their good-will by judicious settlement of such errors of practice and misunderstanding as may inadvertently occur. It is the experience of the Bureau of Foreign and Domestic Commerce in its role as volunteer mediator of Pan American trade disputes that representative North American houses are zealously eager to make the amend honorable every time. On the other hand, irresponsible commercial pirates regard any deal as closed after they have secured their money, and they avoid adjudication as a burglar does a police court. There is no such thing as a superabundance of information about any man nr his concern when we are dealing with hip for the first time. Nor will he him- self refuse to report his whole background and history, unless he has something to conceal. 1 wish that the habit of commercial confession on which North American domestic credils are based might be emulated in Latin American countries instead of it being so often thought a species of impertinent familiarity. Of course, there is no morality involved in a transaction when two traders meet each other fortuitously for the secret purpose of tricking each other. When the victim of "horse-trading" cries out that the animal he received for his spavined ' hoi;se was even more spavined and also foundered, the Bureau of Foreign and Domestic Commerce as mediator retires from the paddock with a smile of serene detachment. The Pan American deserves just what he gets and nothing else. Please do not for even a moment infer from this discussion that we find Pan American trade relations greatly beset with complaints or difficulties of under- standing. As a matter of fact, the course of this trade for several years back, even during troublous war conditions, has been singularly free of conflict. Instead of disputes there has been a constantly augmented flow of warm commercial sjrm- pathy and admiration. The official correspondence of the_ United States Depart- ment of Commerce with South America frequently reads like the billet doux of a successful courtship. But, now, that we have learned one another's ways and viewpoints, what common tenet of commercial faith may be found, what creed of ethical value to which all our business interests may adhere? It seems to me that we ought to 242 SECOND PAN AMERICAN COMMERCIAL CONFERENCE have a standard, a touch-stone by which our mutual trade conduct is measured and guided. The Home, the Church and the State acknowledge, each for itself, a platform of moral declaration by which it appeals for support to the peoples of the world. In different lands the articles of faith vary, but they never deviate from the supreme purpose of inculcating a common morality in accordance with tlie best thought of the land. The great institution which we call "business" deserves such a creed, so that men North and South may acknowledge it, just as most of us acknowledge allegiance to the ten commandments of Moses; it needs a creed to which the guardians of economic integrity — and every honest business man is such a guardian — to which he may point and say "You may count upon me to follow that ideal so far as it .is humanly feasible." It would then be possible for us to hold up any phase of business conduct to the creed and to determine how far it followed that ideai or departed from it. It would mean that in the very beginning of a transaction the several parties thereto could accept the guiding principles in which they concur without debate and thereby clear the ground of any basic misunderstanding before actual trade ensued. It would mean the same tmity of spirit and purpose that actuates all the members of a church or of a political party. It would satisfy the intense longing of the honest and capable business men within the realm of the Pan American Union to know each other better so that coordinated business conduct is made easy and habitual. Needless to say, the adoption of such a creed would automatically exclude from our confidence those individuals who could not or would not subscribe to its articles. Without doubt there exists in the minds of most good business men a list of non-ethical practices which are known to commerce and abominated. These frequently take the form of prohibitions, expressed in negative terms, such as a resolution that we will not attempt to ruin another man's market by the process of selling goods below cost next door to his best customer for the sole purpose of injuring him and his customer at any cost. Likewise, no good manage- ment will throw a hard-pressed dealer into bankruptcy for the purpose of stealing his business. Neither will a good management secretly bribe a customer's purchasing agent to take goods of inferior quality at high prices. No good man- agement should deliberately hire away the valuable employees of another con- cern for the purpose of crippling it ; this is an evil which is too prevalent now and would be abolished if there could be an agreement on its unmoral character. No good management thinks it permissible to adulterate the goods of a copipetitor and then sell as of representative value in order to damn the competitor in ^h?-.eyes of his trade. Even the practice of selling second grades or so-called, jobrlotg.st. Prop- erly reduced prices may be considered justifiable only when the goods, arp indelibly marked for recognition as to second quality by the consumer. There is no need to recite the entire list of tricky practices which the high minded commercial men of North and South America condemn as individuals. These, however, might be carefully rehearsed and written down and by a process of studious analysis reduced to several fundamental prohibitions in principles on which Pan American agreement could be expected. I would, however, be in favor of an explicit and detailed exhibit of those practices as the first step in formu- lation of the creed so that the underlying principles would be thoroughly appre- hended by those people who need daily explicit direction in the same way that the great moralist Moses gave it to them. Practically all instances of suspicion directed against a customer or com- petitor as to his motives would disappear if we knew that he had pledged himself to a code that we ourselves support. Further, let me say that business should explain to the world the irresistible economic laws on which it is founded; it should encourage and advertise the fifle morality of its directing heads ; it should formulate and profess a code of honor appropriate to the commercial idealism of the day; and it might, with great profit, define a code of business honor which good business everywhere would gladly em- brace for its own protection. At this particular juncture of world affai«s, when we may count the loss by war of two hundred and fifty billions of dollars' worth of accumulated credit, rep- resenting the earnings of millions of people during the last century, we must look forward to commercial operations based on future earning capacity. The credits and the negotiable values which were available to us in July of 1914 for the last time have been diverted to other uses or have completely disappeared. This is TRADING METHODS -■ 243 primarily true of Europe, but its effects are even now being directly felt in the New World. From now on commercial credits and confidence will be based, to a large degree, on the future earning power of the people in all parts of the world. Those countries which have been wholly occupied in warfare will be called upon to re- deem the inflated currency issued by their governments ; they will be called upon to produce raw materials and finished commodities in such volume that a surplus over their own normal needs will accumulate and be translated into financial credits. In other words, only a part of a nation's fiscal strength will be found in values now existing. Since our dependence for the resumption and expansion of commerce will rest very largely on the future ability of peoples to earn an excess livelihood, and since we must accept promises to pay at a future date instfead of demanding imme- diate delivery of gold, we are in the position of relying on the moral courage and integrity of business interests everywhere to make good their promises. Could any time, therefore, be more propitious for the formulation of moral values in business and for a complete comprehension and acceptance of a code of honor binding us closer together and making of the peoples within the realm of the Pan American Union an economic unit working for their common salvation? DISTRIBUTION OF BRANDED ARTICLES IN LATIN AMERICAN MARKETS By E. T. SiMOiiDEiTi, OF John W. Thorne & Co., New- York (Read at the Afternoon Session of Wednesday, June 4) To gain the good will of everybody present I am going to be brief, taking up only one specific phase of merchandising in Latin America: the distribution of articles of general use sold in packages and under a special brand. ,The small package, making possible the general home and personal use of articles that before were sold in bulk, represents a distinctively American develop- ment of modern merchandising. Being founded on convenience and sanitation the small package will be received and accepted all over the world with the same in- creasing favor which is finding in the United States. That is, if American manu- facturers, who are pioneers in this method of selling, will apply to their export business the same good common sense that has made them successful at home, and will realize that people are governed by the same fundamental impulses everywhere. To develop successfully a Latin American market for branded articles, the manufacturer, in my opinion, must be willing to follow his goods not only from the factory to the shipping port but also through the foreign channels of distribution until they reach the ultimate consumer and are really and finally sold. At present, too often the filling and shipping of an order from a foreign buyer or agent marks the end of the manufacturer's activity. Too often the manufacturer is even ignorant of the manner in which his goods are being distributed and the price at which they are Being sold, thus being unable to correct those errors which render impossible the full development of the market. Rather than to point out specifically all the errors that have come under my observation, I prefer to outline the various successive steps which, in my opinion based on actual experience, the manufacturer_ of branded articles should take, in order to secure a real worth-while export business. First: The manufacturer should employ the services of an export depart- ment either -organized for his own exclusive use, or organized for the use of various manufacturers of allied and similar lines. This department must be directed by men possessing knowledge of modern merchandising as practiced in the United States and knowledge of foreign markets. Through this organization selling agents must be appointed for the various markets as determined by facilities of communications, which may mean one or more agents for each country. Second : The selling agent must be a selling representative in the real sense of the word, one that may and generally should carry stock, but not a dealer with a store, whether a jobber or a retailer. The manufacturer who appoints a jobber as selling representative limits his sales from the outset to the restricted number of retailers which that jobber controls through established trade and mainly through the carrying of accounts for long terms. Other jobbers will not buy from that competitor, neither are retailers, controlled by them allowed to buy from that com- petitor. Thus the giving of an agency to a jobber serves only as a stimulus to 244 SECOND PAN AMERICAN COMMERCIAL CONFERENCE Other jobbers to seek agencies of competitive lines, to the detriment of all of them. A selling representative openly recognized as such, even though carrying Stock in his warehouse, is free from jealousies and can sell freely to all jobbers and retailers. This is particularly important during the initial period of missionary work when the agent must first distribute directly to the retailers in small quantities to establish easily available sources of supply and develop a demand which later will induce the jobbers to place orders for large amounts. Third : The manufacturer must not assume that the representative abroad is able to plan and execute a regular selling campaign, but through his export de- partment, although taking in consideration the recomniendations of the agent, must plan and direct the campaign, employing with proper adaptation to each market those methods through which he has been successful at home. The first thing that his plan must contemplate is the price at which the package is to be sold to the ultimate consumer, this price to allow a profit for the jobber as well as for the retailer besides the agents' commission. To establish this price there must be taken in consideration the cost of freight insurance and duty to each market, thus arriving first at the cost of -goods delivered to the agent's warehouse. With rare exceptions the respective profits for jobbers and retailers can be figured at 30 per cent for the former and 33% per cent for the latter. An important point is to see that the agent will not allow any retailer the jobber's dis- count and thus shut himself out of their trade later on. This of course does not apply to_ those exceptional cases in which it is found advisable for the selling agent to distribute at all times directly to the retailers eliminating entirely the jobbers. While there will always be a certain amount of price changing on the part of retailers everywhere, the price to the ultimate conyimer can be maintained fairly regularly by consistent and judicious consumer's advertising. This advertising as well as tiie dealer's promotion work must be directed by the manufacturer's export department availing itself of the cooperation of the selling agent to the extent only to which the agent can usefully cooperate and in proportion of his knowledge of modern merchandising methods. This knowledge of course can be constantly increased by the intelligent and sympathetic assistance that an efficient export department must give the foreign selling agents who should be considered as an integral part of the manufacturers organization. The whole question, after all, resolves itself into this: A manufacturer of branded articles of .general use must not abandon his goods the moment they are 'lelivered on board a steamer at a United States port, but must follow them through the various channels into the hands of the foreign consumer with the same solicitude and intelligence with which he follows them into the hands of the domestic consumer. SELLING METHODS By C. a. McQueen, Chief, Latin American Division, Bureau of Foreign and Domestic Commerce, Department of Commerce, Washington. (Read at the Afternoon Session of Wednesday, June 4) Mr. Chairman, Ladies and &pitlemen: Mr. Barrett this morning in the session on transportation, made the remark that communication is the first essential of trade. That is obviously true, and it occurred to me when he made that remark that in the session this afternotfri someone should point out the fact that knowledge is the great essential to proper methods of trade — if not knowledge, at least the possession of a source whence knowledge may be obtained. I have chosen this topic because it is brought home to me every day in conducting the work of the I^tin American Division of the Bureau of Foreign and Domestic Commerce. Our duty is the promotion of the commerce of the United States with Latin America. Incidentally, we promote the commerce of Latin American coun- tries with our own country. The Pan American Union of course is a cooperative organization of the American republics. I shall have to speak, however, as an officer of the United States Government, entrusted with the promotion of American trade. To go back to the topic of knowledge, I wish that all of you who are in- terested actually in trade could come and see the beginnings made in the Bureau TRADING METHODS ^5 of Foreign and Domestic Conunerce for the collection of all sorts of economic information on Latin America. In talking this noon with a well known gentleman here present who has recently returned from Argentina, he made the remark that conditions as they exist at present in South America have not been covered in any publication that has come to his attention nor in any of the speeches, as excellent as they have been, which he has so far hsard at the Conference. He made the remark that no one in this country realizes the tremendous changes that have taken place. The people who are going to do business with Latin America must post ithemselves on those things. They will find our Bureau at their disposal. By means of the Irade information supplied us through the consular service and through our own offices in Latin America, we get reports on economic conditions. Through all the important newspapers published in Latin America, we are posted on what is happening, not in the way of news but in matters of trade, statistics, production of native materials and special opportunities that arise for tiie invest- ment of capital or the more active promotion of export sales. In various other ways we are supplied with a fund of knowledge which we really wish we could disseminate with greater facility. Since the signing of the armistice, we have supplied some five thousand five hundred business firms with more or less important trade information regarding Latin America either by letter or by personal interviews. I suppose that allowing for repetition we may safely say that we have supplied information to three thou- sand five hundred separate concerns in this country— manufacturers, banks and exporting and importing houses.' A great many of those firms were entirely new to Latin American trade, for, just as soon as most of the manufacturers could get their bearings after. the signing of the armistice, they began to look around for foreign markets and Latin America was one of the fields in which they were chiefly interested. I would like to review the ways we have, the different channels we have of directing the efforts of those people toward Latin American business, but the purpose of this session is, I understand, to discuss trade methods. Including selling through commission houses and direct sales and all other forms of promotive effort, I find that there are six different ways of getting Latin American business — six different systems of handling the business, and the knowledge that you must obtain of Latin America before you attempt to do busi- ness there will guide you to one of those six systems which you must adopt. Through Commission Houses. Secretary Redfield in his opening speech of Tuesday morning said, that before the war our products were largely sold in Latin America by foreign merchants and were shipped there in foreign vessels. Now, that is true, as every one who has traveled in) Latin America knows. I myself have seen in Buenos Aires the warehouses of German firms filled with American specialties such as gasoline engines, barbed wire, wind mill supplies, machinery and a number of other things which are known as American specialties— kitchen ware, office supplies, filing cabinets, petroleum products, lubri- cating oil, leather shoe findings and other things — ^tiiose were sold prjCctically entirely through the commission houses of this country and they carried the burden of the country's Latin American commerce. I presume it may be safely estimated that they did 70 per cent to 75 per cent of this country's Latin Ameri- can business. American firms can do their business through commission houses in two ways. One is without effort on their part, simply selling the commission house as they would a domestic customer. 'That has been done to a great extent._ I know a great many important manufacturing concerns who make things like build- ing hardware, anvils, and similar metal specialties who every month receive very nice orders from the New York commission houses, and they have iio further in- terest in Latin American trade because they are satisfied with what they are getting. That was especially the case before the war. That is the first way of doing export business with Latin America, but I don't think you should consider those people in the export business strictly speaking, because they make no effort to get it and the mere fact that their products go to Latin America is not im- portant to them; they simply accept the business. The second way of exporting to Latin America involves more exertion on the part of the manufa"cturer. That is through inducing sales by means of adver- 246 Second pan American commercial conference tising or by sending salesmen to a foreign country and soliciting orders to be placed through a New York commission house. It is a good plan to adopt in the case of special industrial equipment. Industrial equipment, of course, is not sold in any great volume in Latin America. As a rule there are a few very large factories in certain lines and a manufacturer has to study how those factories buy their equipment. They are usually tied up with some local importing and export- ing concern which supplied the capital for the beginnings, of the business. You could not give those factories any machinery, it has to be bought through that commission house, which insists on remaining the channel for the supplies of the industrial organization so that where the number of possible customers is limited, it is best to ascertain just how each factory buys its equipment and then work through those channels. You may have to go to a firm in Paris. I have known of cases where a large factory in Buenos Aires would place its orders through a local house who would forward the order to Paris; that house would then send it to New York for execution, but the business was originally sold by the salesman of the American manufacturer. Those are the two forms of doing business through commission houses. With the changes brought about by the war, the relative volume of Latin Ameri- can exporting done in that way is less than it has been in the past. There are four ways of doing business in a direct manner and they are receiving the close attention of American manufacturers. (1) I would take as an example a manufacturing concern which has an export department in this coun- try, employing a man who knows how to get Latin American business and sending salesmen to call on customers through Latin America, just as they would on busi- ness houses in this country. That is done very successfully by a number of highly reputable firms in this country who have thereby created a very steady demand and a good sale in Latin America for their goods. The second way of selling direct is that of an export organization on a broader plan with perhaps branch houses in some important .parts of Latin America and resident agents in other sections. That is going into business on the scale of large petroleum and ' steel companies. The third way of doing business directly is thA of mail order, selling to the individual or to small dealers as in the case of the large general merchandise mail order houses. There has lately been a development of that kind of selling and a few large dealers and merchandisers are getting out catalogs in . very fine shape which show all the thousands of articles they have for sale. Much of this business is done for cash and the American houses do business on such a scale that the prices induce a large volume of. sales. The fourth way of doing business direct is that of combining with other manufacturers. That is a subject which ought to be discussed, of course, by a„ man who has studied the Webb-Pomerene Bill. It has been our experience, how* ever, that so far as Latin America is concerned only a few Webb-Pomerene con- solidations have been effected. Of the consolidations or cooperative sales organi- zations"with which I am acquainted, the majority are composed' of firms which are non-competitive. They will have a complete line of textiles combined with hardware and almost any branch of merchandise, but they really don't coine under the Webb-Pomerene Bill. Nevertheless, it is an excellent plan to follow for selling merchandise, whose volume of sale is not quite large enough to warrant going to great individual expense. Now, speaking mostly to those absent because all you men here are familiar with the export business, I would say that you must get the knowledge of Latin America which is so necessary, get it through organizations which supply it such as the Pan American Union, the Bureau of Foreign and Domestic Commerce, the American Manufacturers Export Association and other bodies. You must- determine what plan you are to follow, get a conviction about how you want to do business and then get busy. The Bureau of Foreign and Domestic Commerce, the Latin American Divi- sion, is always at your disposal for any assistance you may want on any specific matters of trade. TRADING METHODS 247 THE WEBB LAW, ITS SCOPE AND OPERATION By Dr. William Notz, Export Division, Federal Trade Commission. (Read at the Afternoon Session of Wednesday, June 4) In connection with the lively interest displayed by Am'^rican business men in new situations which have developed in international trade as 9, result of the world war, the so-called Webb law is receiving a noticeable share of a(te(>tion. Excluding all merely temporary, war-time legislation, \\ is the most im- portant piece of legislation enacted by Congress during the war for the promotion of American export trade. Together with the Federal Reserve Act, and the act iiuthorizing the War Finance Corporation to furnish credits to finance foreign trade, the Webb lawr represents a noteworthy forward step in tjie consummation of an American foreign trade policy. Already a literature of considerable volume has grown up on the Webb Act, and one of our large law pphools h^s included a study of this law in one of the courses of its curriculum. Moreover, interest in the Webb law is not confined exclusively to this country. The provisions of the Act, and its operation, have been the subject of numerous articles in foreign publications. With one or two exceptions, the comments on the law which have appeared in the foreign press have not voiced any unfavorable criticism. On the contrary, the Act has been pointed to as a model statute. Attention has been called particularly to the fact that the Webb Act repre- sents the first effort involving compulsory registration of f^de combinations and a certain degree of control of the activities of such combinations by a Government agency under a special law. A similar plan for government controj of cartels and syndicates was advocated at different times in Germany "and also in Austria, in connection With official cartel enquetes in the years 1902 to 1908. In Great Britain this method has apparently strong support in the British Board of Trade. The Com- mittee on Commercial and Industrial Policy After the War, in its final report (London, 1918, pp. 62 and 63), recommended that "it should be a legislative re- quirement that all international combinations or agreements to which British com- panies or firms are parties, made for the regulation of tlie prjces of goods or services, or for the delimitation of markets, should be registered at the Board of Trade by the British persons, firms or companies concerned, -vylth a statement of the names of all the parties thereto, and of the general nature and object of the com- bination or agreements and all adhesions and withdrawals should also be notified." As to combinations or agreements between British firms, the Committee recom- mended that it should be optional for the parties to register at the Board of Trade, but that any price or other marketing arrangements or agreements registered should be enforceable at law as between the parties thereto. JLastly, the Com- mittee recommended that the Board of Trade should have power to call upon in- dividual consolidations or combines to furnish such information as it may require. The newly created Canadian Trade Commission apparently favors new legis- lation along similar lines regarding the future treatment of combines in Canada, "which shall proceed upon the broad ■ principle that there is an aspecit of such movements which requires encouragement, while other aspects require repressive measures." Both in this country and abroad the Webb law has attracted attention by reason of still another fact. The laws of a number of countries approach the prob- lem of trade combinations with the evident purpose of repressing the excrescences of syndication. Tliey plainly indicate a tendency to restrict the free formation as well as the free operation of syndicates or combines. The Webb law in a way represents a departure from this policy. It is looked upon by many, and this was brought out clearly in the debates and hearings on the Webb bill in Congress, as an indication of a change in our traditional policy concerning trade combinations and their economic utility in so far as export trade is concerned. A similar shift- ing in governmental attitude towards combinations took place several years ago in connection with the German potash law, followed somewhat later by similar laws elsewhere. The whole movement has received a strong impetus during the war, particularly in the countries economically most highly developed. Most of the discussions of the Webb law at meetings of trade associations and of various commercial organizations, ar well as in the press, confined them- selves either to certain legal problems or to the numerous advantages expected to result from use of the powers provided by that act. It is now over a year since the 248 SECOND PAN AMERICAN COMMERaAL. CONFERENCfi Webb Act was placed on the statute books of the United States, having been ap- proved April 10, 1918. This is, of course, too short a time to permit ot any final conclusions as to the operation of the Act. Nevertheless, a survey of the general working of the Act during the past IS months, from a legal as well as an economic point of view, may show in how far the expectations of those who advocated the enactment of the present law have been realized up to the present time. In ad- dition to this, certain trends of development can be readily observed which open up a number of interesting new phases in the history of trade combinations, and in a wider sense of international trade. Then, too, an analysis of the form of organization, and of the agreements of export associations purporting to operate under the Webb Act,' will prove. of interest in several ways. Under Sec. 5 of the Webb Act every association which at the time when the law was enacted was engaged solely in export trade, as well as every association formed after the passage ol the act shall, under penalty of fine for failure to do so within a prescribed time, file certain statements with the Federal Trade Com- mission. These verified written statements shall set forth the places of business, officers, stockholders or members, and shall include in the case of a corporation a popy of its articles of incorporation and by-laws, and if the association is unincor- porated, a copy of its contract of association. Special forms for making this first report are provided by the Federal Trade Commission. Up to the present time 95 concerns, with well over 800_ stockholders or members, have filed statements with the Federal Trade Commission. It appears,^ however, that amon^ these associations there are a number whose articles of asso- ciation contemplate the transaction of business other than that of solely exporting to foreign nations, whereas section 2 of the Act exempts from the Sherman law such associations only which are entered into for the sole purpose of engaging in export trade. Twenty-eight of the associations which purport to be engaged solely in ex- port trade under the Webb law comprise well over 300 stockholders or members. Among the latter, however, are several trade associations, each with a large mem- bership of their own, so that the actual underlying number of individual concerns which appear to be entitled to the benefits of the Act easily aggregates'-a thousand. The plants operated by the member concerns of these 28 associations number 318, and are distrjbuted over 39 States of-the Union. The diversity of industries in which these export associations have been formed is illustrated by the following list of products which the associations pur- pose to export to foreign nations : Bunker coal, canned fruit, carbonate of magnesia, chemicals, clothes-pins, condensed milk, copper, doors, elastic and non-elastic web- bing, fertilizers, ilax, hardware, hides, iron and steel productSj_ laths, locomotives and spare parts thereof, lumber, meats, metal accessories, moldings, office equipment, pharmaceutical blocks of carbonate of magnesia, phosphate rock, pickets, plaster, shingles, skins, silk, soap, staves, tallow, vegetable oils, wool. In how far have developments subsequent to the passage of the Webb law justified the argument that cooperative selling ageiicies or associations among American exporters are needed in order that the latter may meet foreign rivals on foreign soil on equal terms? The Federal Trade Commission called attention to foreign combinations competing with American exporters in a special report. Therein it recommended properly safeguarded declaratory legislation, permitting concerted action by American business men in export trade. President Wilson on several occasions erriphasized the need of making it possible and legal for our ex- porters to combine, allowing them "to manage their export business at an ad- vantage instead of a disadvantage as compared with foreign rivals." Likewise, the Commit'tee on Interstate Commerce of the U. S. Senate (64th Congress, 2d Session, Feb. 14, 1917), in its report recommending an amended form of the Webb law for passage, stated as its belief that "it is necessary to permit our business men to form organizations or associations so as to enable them to meet foreign competitors on a more equal footing." While it is a well-known fact that export combinations existed to a limited extent prior to the war in various foreign countries, nevertheless, it must be said that their number and strength has been frequently exaggerated by over-enthusi- astic writers and speakers. As a result of this the importance of foreign export cartels and combinations as competitive factors in international trade before the war came to be som ewhat over-estimated *n the minds of many, both here and abroad. ^Federal Trade Commission, Foreign Trade Series No. 1, 1919, page 6. TRADING METHODS 249 However, in the world-wide drive for export markets which set in during the war. cooperation in export trade has been advocated and put into actual operation with an ardor and on a scale which easily outdistanced all previous efforts of this kind. The universal tendency towards consolidation, so characteristic of commerce and industry during the war, crystallized itself to a marked extent in the form of com- binations for the control of prices and production in domestic market and also in export trade. Where before the war there was a limited number of export combina- tions, chiefly in Germany, we now find them in large numbers in all the leading countries of the world.K In Great Britain their formation is being actively encour- aged by the British Board of Trade. The Canadian Trade Commission has strongly recommended cooperation among Canadian manufacturers for export trade. The Japanese Government is fostering the exports of that country by aiding export combinations through subsidies and in other ways. Looking at competitive conditions, then, as they exist in international trade today, the fact cannot be dis- regarded that organized groups have replaced very largely the individual enterpriser, and that future development seems to tend in the same direction. There is this marked difference, however, that whereas in the absence of any government control more or less secrecy enclouds the organization and operation of foreign export combines, American export associations operating under the Webb Act must comply with specific legal regulations and are subject to a certain supervision by the gov- ernment so as to safeguard fair competition and high business standards. Shortly after the Webb law was passed by Congress one or two instances of unfavorable comments appeared in the foreign press, to the effect that under the Webb Act our foreign customers might be made the victims of trust evils, such as wilful restraint of trade and the cornering of markets. Efforts were made at once by representative American manufacturers to set at rest any misapprehension which might have arisen and apparently no further unfavorable comments on the Webb law have appeared in the press abroad. As stated above, the foreign press and leading spokesmen 'of foreign governments have on several occasions given evidence of a very favorable attitude towards the Webb law. Hiowever, in view of the above-mentioned criticism it may not be amiss to point out certain provisions of the Webb law, as well as other considera- tions which have a bearing on the subject. In the first place it is to be noted that section 4 of the Webb Act makes the prohibition against unfair methods of competition and the remedies provided for enforcing that prohibition contained in section 5 of the Federal Trade Commis- sion Act of Sept. 26, 1914, applicable to unfair methods of competition used in export trade aigainst competitors engaged in export trade. Furthermore, section 4 of the Webb law expressly gives extra territorial jurisdiction to the above-men- tioned provision of the Federal Trade Commission .Act against unfair methods of competition. The law supplementary to the Federal Trade Commission Act, gen- erally known as the "Clayton Law," specifies certain "unfair practices," including certain forms of price discrimination and so-called "tying contracts." The fact should not be lost sight of that export trade combinations have been formed in all important commercial countries of the world, but that the laws of the United States alone require American associations to register with a gov- ernment agency which has wide-reaching powers under the Webb Act to check unfair practices of competition. If certain practices on the part of export combina- tions should grow up which would prove objectionable and would be detrimental to "fair play" in international trade, it would become a matter for international action."^ Looking at the Webb law from the foreign purchaser's point of view, a num- ber of benefits accruing to them as a result of the operation of that law merit attfention. The greater diversity of goods, as well as the increased volume of American manufactures which are likely to flow to over-sea markets in consequence of more American manufacturers engaged solely in export trade participating in export business would seem to involve considerable benefits to customers in foreign lands. Export associations are in a position to pay much better attention to the needs of a foreign market than the average individual exporter, jobber, etc. The saving in over-bead expenses, etc., possible under a joint selling arrangement, makes possible a reduction in price. And finally, to mention but one more ad- ^See article by W. B. Colver, on "Recent Phases of Competition in Inter- national Trade," in the Annals of the Am. Academy of Pol. & Social Science, May, 1919, pp. 233 fol. 2S0 SECOND PAN AMERICAN COMMERCIAL CONFERENCE vantage of the Webb law to foreign customers, the facilities for merchandising of well organized and financially sound export associations will stimulate competition in foreign markets. It may be interesting for you to know that within the week the Federal Trade Commission has ordered issued its first formal complaint under the Webb law. This matter had to do with exportation of American made goods to Mexico, such goods being labeled as though manufactured in a European country. The law of. Mexico against such misbranding will be collaterally upheld by the enforcement of the Webb law and the Federal Trade Commission law against unfair competition. To sum up, it seems clear that the miotive which actuated Congress in pass- ing this law was to promote American export trade along fair and legitimate lines, not to seek an organized advantage. Our leading statesmen, economists, lawyers and business men appear to be in accord that if the letter as well as the spirit of the law is lived up to by associations which operate under it, the Act will be found helpful not only to the business interests of the United States but in a wider sense also to international trade. Its ultimate success or failure will rest very largely on our own business men. If it is to serve selfish interests, as a ve- hicle for unscrupulous exploitation of either the domestic or the foreign market, or both, the expectations of the high-minded and broad-visioned men who were its sponsors would be shamefully thwarted and foiled. And besides, let us not forget that the Webb Act has teeth in it. Under the terms of that law the United States government declares itself in unmistakable terms as insisting on fair and honorable business methods in export trade, and it now becomes the duty of those who wish to qualify under this law to keep the escutcheon of American honor and integrity stainless and to uphold in the future the enviable reputation which our industrial and commercial pioneers in export trade have established in the past. It is particularly fortunate for the smooth administration of the law that the Federal bodies exercising supervisory powers over it are sympathetic and earnest in their desire that it be of real value. As reports of associations are to be made to the Federal Trade Comwiission, we quote the following abstract from a speech by Mr. John Walsh, chief counsel for the commission, at New Orleans, Janu- ary 13 of this year f ' "On account of the interest of the Federal Trade Commission in the develop- ment and enactment of the law, it can be assumed that the Federal Trade Commis- sion will administer the powers and authority given it by the law, in sympathetic interest and with liberal interpretation of its provisions, but with a constant aim to' justly protect competitive conditions, both at home and abroad." The above suggests, at least, assurance of a liberal policy in the application of the law. THE WEBB LAW IN ACTION By Benjamin Catchings, Counsel to the Export Trade Division, Federal Trade Commission. (Read at the Afternoon Session of Wednesday, June 4) Fellow Conferees; June weather such as ours today no doubt hastened the signers of our Declaration of Independence into a speedier accomplishment of their immortal act on July 4, 1776. That thought of Independence, liberty and idea of self gov- ernment has been spreading and bids fair to spread over all creation. If the heat of the weather, the warmth of our fellowship and welcome, and the very important facts laid before us are to lead us into acts which may emancipate our commerce and give its freedom of growth and action, we must carry on without too tedious detail. Therefore I leave with you a printed memorandum on the "Webb Law in Action" prepared for the Chicago convention in May. One prefers to think of those who may desire to read it as comfortably seated before an electric fan, smoking a good cigar, in the comforts of a private office and nothing niuch else to do. While I prefer this, yet the paper, if rolled carefully, makes a good cigar lighter, and so I leave it with you to he consumed or absorbed at your option. TRADING METHODS 251 What I tried to say in that paper was chiefly this, that every phrase and every paragraph in the Webb Export Trade Act could be improved upon and made more definite, more certain, but if we try to get it amended as to details we may not recognize the law at all when it comes out of the Legislative mill. It is a good law, and broadly speaking, its self-corrective powers should be used to the point of exhaustion before seeking amendments. In other words, if there is doubt as to whether Bunker coal is export coal, the Philippines a territory, or importing a necessary incident of exporting, the provisions of paragraph 2 of section 5 should be set in motion and a definite answer from the Federal Trade Commission obtained. The provision in this Act, which requires the Commission to summon an export association before it whenever it appears to be violating the law to receive suggestions from the Commission as to how its business should be conducted in order to conform to the law, is unique in anti trust legislation. The Sherman law had no such provision and business has been stumbling around for nearly 30 years in a maze of confusion as to just what acts were legal and what were illegal. Here we have a guiding hand to make the channels and highways of foreign trade definite and certain. The method of using it is extremely simple. The Export Association habitually draws up a declaration of its business methods and policy. This declara- tion may state that the methods and acts described have been, are and will con- tinue to be effective, unless, and until the Commission suggests a modification thereof to conform to the law. A copy of this should be sent to the Attorney General with notice of filing with the Commission. This declaration will precipi- tate action. If no action results then the association could expect the courts and any jury of laymen to turn down any collateral attack. During the war the Allied governments pooled their buying orders and invited bids on wood screws. The specifications were so large that only the American Screw Co. could bid on the whole. To provide competition one inde- pendent mill bid planning to spread the order over the other mills. The order was refused him because his capacity was insufficient. Then the independent screw manufacturers rushed from pillar to post to find some department of the Govern- ment who could tell them that they could legally combine for the very purpose, not of destroying competition, but of providing competition on these tremendous buying orders. They found in fact why pillars, posts, stone walls and silence. This shows the difference between an hide bound penal statue and a supervisory, "go as far as you like," but will go with your arrangement if it works out as was planned by the Congress. Now I wish to get away from the technical down to the practical things that can be done in the export trade. Heavy advertising must be done. To protect this advertising, export manufacturers can pursue a resale price maintenance policy on foreign sales. If they want ships they can build them or cooperate with other export associations in providing them. There is some doubt as to whether an Export association can both send a ship across and bring it back. This can be met by erecting a shipping corporation to operate on a service at cost basis founded for shipping as a university is for education. We are in an age of big things. America is in the foreign trade and she is there to stay. If ocean freights hinder and retard her shipments, then the combined export associations can endow a shipping corporation with funds to write off and operate without charge adequate ships. We can bridge the ocean on the same basis ■ we build a public road. Export associations may agree under the law to figure 2 per cent or more on their export sales as a steady flow of funds to provide transportation facilities. This applies also to terminal warehouses here and abroad and to modern facilities for handling our products. The old football slogan used to be : "Boys, we're going over, around or through, lets go." Today we can say to our friends abroad "America has gone over, she's there, she's with you today, tomorrow and forever, what's the next job. Lets get at it." Some of our high brow economists have said that the Webb law was unethical, that America was permitting to be done abroad what she would not permit at home. This cry was expedited on its way by every "hun" in South America and by our other commercial rivals. Certain newspapers in Argentina and Brazil took it up. Let us climb up on the grand stand and look down on the cock pit, the arena of foreign trade, and see how silly and nonsensical this is. First, I will say that the very papers who published these criticisms buy this paper from a Webb Law Association and prefer to do this because they can get 252 SECOND PAN AMERICAN COMMERCIAL CONFERENCE "what they want -when they want it" in better shape and a steady supply than they can from unorganized independents who regard the foreign field the place for only intermittent cultivation Regulation. _ '_ A bear, gentlemen, in his wild state is dangerous, but with a ring in his nose and led about by a keeper, he is quite harmless. The elephant in the field runs amuck, but mounted by a keeper armed with a goad is a useful beast of burden. A stallion with his fire and go is unsafe when left at large, but under pro- cesses of regulation he becomes a mere horse, a beast of burden, and bridled, lives a life of service. A bull in the arena is met only by skilled matadores, but under regulation becomes a steer under yoke and reins. So the Government of the United States, by the Webb Law, has not made a difference as to foreign trade, but has said to those Americans who wish to do that they may submit themselves to public regulations, and so long as they follow the guidance of the Federal Trade Commission they may cooperate in foreign trade. Now by this regulation the American Public is protected, competitors are safeguarded, and it is understood, of course, that if American Combinations abuse their privileges in foreign markets that they will be regulated by the countries in which they do business or else willfind their customers then buying from other countries. In the arena of foreign trade we see large transactions, large buyers, large competitors from other countries and we deal with big business. The foreign buyer will prefer to deal with and would find it to his advantage and the great mass of American Manufacturers through these, associations may actually bid for their business. The combination which goes forth to exploit and hold up the foreign buyer has but a short life ahead of it. And we believe that by cooperation the American manufacturer will be able to present in foreign markets that same spirit of doing things which the American boys displayed when they were enabled to lead the iorces of Liberty and Humanity "over the top" to the everlasting destruction of autocracy on the battlefields of France and Flanders. SCIENTIFIC PACKING By Captain H. R. Moody, Chief, Packing Service, United States of America. (Read at the Evening Session of Thursday, June S) In the past there has been a decided tendency on the part of the Amer- ican manufacturer to treat the containers used to convey his merchandise as a necessary evil. However, at the present time there are sjrmptoms of a great awakening to the realization that the containers are a very important, if not one of the most important, factors in the proper shipment of goods. This is particularly true of shipments for export, because of the many hazards to which the packages are subjected in overseas shipping. The day when the con- tainer was considered a small matter upon which the greatest economy should be practiced, is past and it is rapidly assuming its proper position wherever the question of shipments comes up. When the United States entered the war, it entered at the same time what was to become the greatest export business that the world has ever seen and it was soon discovered that the great majority of manufacturers had no con- ception whatever of how goods should be packed for overseas shipment and many weird containers were offered for delivery. If it had not been so near the tragic, it would have been extremely comical. The War Department found it necessary to establish a packing service whose business it was to supervise all packages and containers for army use. The Navy and Marine Corps also established similar services. The duties of these departments covered the sci- entific treatment of boxes, crates, bales, etc., with all the ramifications pertain- ing thereto. It was found that the great tendency was to use wood much too thin to stand the strain of hard handling and many failures occurred from this defect. A great deal of difficulty was experienced from improper nailing — the TRADING METHODS 253 great tendency being to put too few nails to properly hold the sides, top and bottom of a box to the ends, and also to use too small and light a nail. It was also found that from certain sections of the country, too small pieces bf wood were used for the sides, top and bottom, and a very serious fault was the location of the joints of the ends. When this construction occurred and the box was subjected to a violent fall, it was found that the entire box was split in half or at the point where the joints occurred, whidi caused the fail- ure of the entire comainer. Another serious defect was the improper appli- cation of strapping cases owing to the tendency of the case to shrink away from the iron strapping. When the importance of proper packing is fully understood by the man- ufacturers they will undoubtedly establish a section in their shipping depart- ments for the purpose of carefully inspecting and prescribing all packages leav- ing their plants. Let us for instance, follow an improperly packed shipment from the factory. This shipment is loaded on the cars and a clean bill of lading is received. This to a large extent, relieves the manufacturer of the responsi- bility of damage to the goods and should the damage occur while in the cus- tody of the railroad company, a claim must be made and the railroad company must settle the damage. The fact is lost sight of that these claims amount to enormous figures at the end of the year, and that ultimately the freight must be assessed to cover these losses. Let us go further and assume that the ship- ment arrives at the steamship dock in good condition. The steamship company gives a clean bill of lading for the merchandise. Again we are confronted with the possibility of damage on shipboard where any claim must be made against the steamship company and where again we are faced with the fact that these losses must be made good by increased freight rates. This is inevitable and the manufacturers and shippers of goods have to stand the burden of the losses caused by improper packing. When the shipment arrives at the foreign port of entry in good condition, it has still ahead of it the hardest part of the handling -—namely the unloading from the ship to the wharf or lighter and from the lighter to the wharf, thence to the custom house stores, from there to a truck, and finally to its destination. If the container is of such quality as to stand all of these hazards^ well and goodj but unfortunately, excep't for goods shipped from certain corporations which maintain a large and comprehensive packing service, there is invariably more or less serious damage to the merchandise. Let us consider the /situation in which the foreign merchant is placed. Usually after an expensive campaign of advertising, possibly followed by a still more expensive campaign of personal solicitation/ the manufacturer has been suc- cessful in securing an order from the foreign merchant. It may be that this is a sample order and the future deialings of the merchant with the American manufac- turer depend upon the quality and condition in which this sample order 'is deliv- ered. Furthermore, the merchant is anxious to have these goods delivered so that he may place them on sale within a reasonable length of time. The packages are delivered and upon examination it is found that owing to faulty packing, more or less damage (unfortunately it is generally more) has occurred to the mer- chandise. This sets up an immediate prejudice in the mind of the merchant because he is prevented from placing these goods on sale and because of the necessity of making a claim for the damage. It also instills in his mind the conviction that when he needs similar goods in a hurry for some particular order or sale, he cannot depend upon the American manufacturer to deliver the goods to him in salable condition. Take for instance the case of a local merchant — if he purchases goods from a wholesale house and they are delivered to him in a damaged condition, he is put to a great deal of annoyance and incidentally loss, even if the claim is settled in full, and his attitude is more or less hostile to the house that per- mits carelessness in its methods of delivery. This applies to the foreign mer- chant, only to a larger degree, because he has been in the habit of purchasing a great deal of his merchandise from European manufacturers who pay close attention to the details of packing and delivery. The old saying that a chain is no stronger than its weakest link is par- ticularly applicable to this situation, for it makes no difference how much quality is put into goods or how attractive the merchandise may be, if it is delivered in a damaged condition, it is unsalable, and it is easily seen that the weak link 254 SECOND PAN AMERICAN COMMERCIAL CONFERENCE in the chain of our overseas shipments at the present time is carelessness in packing. This has been confirmed by practically the unanimous opinion of our foreign trade commissioners and commercial agents all over the world. The American manufacturers have been scolded for years for this defect but no constructive criticism has been offered, and it is the object of this talk to place before the manufacturers of this country practical suggestions for the better- ment of their packing methods and to insure to a larger degree the security of their goods for both local and foreign delivery. There is one very important factor connected with the proper packing of goods for export and that is the saving of tonnage space. This is particularly applicable to goods that are bulky rather than heavy and where the steamship cornpany, exercising what is known as "ships option," assesses the freight by cubic measurement or cubic ton — namely, 40 cubic feet. A very startling in- stance of this occurred during the Summer of 1918, when in the course of the shipment of army supplies an order was placed for 26,000 rolling kitchens. These were of vital importance to the fighting units of the army as they were used for the supply of food to the front line forces. The design of a crate was submitted by the manufacturers of these kitchens for the approval of the packing service of the War Department. After careful consideration this design was re-drawn and it was found that by scientific treatment of the crate, whereby the contents were condensed and the ultimate amount of waste space on the interior of the crate was eliminated, a saving of 22,500 cubic tons was effected, on this ship- ment of kitchens alone. It is fully appreciated that this is an enormous ship- ment and that the figures of .saving are very large, at the same time it shows nearly a cubic ton per crate, or 40 cubic feet. This is certainly worth while from the standpoint of economy in the shipment of goods to our foreign cus- tomers. The statement has been made to the writer on several occasions that the foreign merchant has to pay the freight so the question of the saving of ton- nage space and the effecting of economical methods is not of interest to the American merchant. This would appear to be a very foolish statement — short- sighted viewpoint when it is realized that the merchandise must stand all of the costs and charges. If there is no consideration given to economy on freight rates, when the goods arrive and the costs and charges are loaded on to the merchandise, the selling price of our merchandise when placed in competition with goods that are economically packed, must necessarily be higher than the , competitive goods. So even if the first cost of our merchandise is smaller, if we do not pack and ship economically, we have destroyed our advantage. This has been proved to be a very important factor and has led to the loss of a great deal of trade. The attention of the American manufacturer is earnestly invited to the serious consideration of all methods that will tend to economical packing with the idea of condensing the package to the smallest possible size. There are several important points to be considered in the matter of the proper packing of goods for overseas shipments. These are divided into several sub-divisions. For instance, in the use of boxes as containers, great care should be taken to see that the proper wood is used so that the container will trans- port the goods safely. The Department of Agriculture has issued a bulletin showing the comparative values of various woods that may be easily procured by shippers for manufacture into cases. The second point is the proper nailing of the box. A great deal of diffi- culty has been experienced by the War Department in cases tendered for de- livery, where the nailing was entirely insuificient, both as to the size of nails and the number used to fasten the case. In a large number of cases, no side nailing was attempted, that is, the top and bottom were not nailed to the sides. This should always be done where the thickness of the sides is suf- iicient to receive the nail, as it tends to make a firm, rigid package and prevents the top and bottom from springing and loosening the nails which hold them to the ends. Another point that the War Department has insisted upon has been the use of nothing but cement coated nails, as it has been found from experiment that cement coated nails have a very much greater holding power than the ordinary box nail (approximately 60 per cent.). Another point is the question of proper strapping. The War Department has insisted that all cases going overseas shall be strapped, but to devise a thor- TRADlNC METHODS 2SS oughly efficient means of strapping has been one of the greatest problems of the Packing Service, because it was found in using flat strapping, and nailing it around the ends and over the sides, . top and bottom, that the natural shrinkage of the wood caused these straps to festoon and destroy the purpose of the straps: The difficulty in using the nailless strap or wire strap has been the inability to set up enough tension on the metal to bite the strap into the wood so as to oflF- set the shrinkage; for when shrinkage occurs with the nailless strap or wire that is not properly sunk into the wood, the straps loosen and eventually fall off the box. Another fault with this last mentioned system was the tendency to place all straps at different angles on the box. A means has been devised particularly in the case of the wire strap, to place the wire at right angles to the ends of the box and to apply a proper tension. A new device has also been perfected for tying a knot with this wire. This is tied in a form similar to the linesmen knot used on telegraph wires and when properly applied makes as per- fect a binding as can be procured. Experiments have been carried on with the idea of recommending that a third strap or wire be used on all overseas shipments and this method has been found to be very satisfactory. It is now recommended that two straps be bound around the sides, top and bottom, close to the ends and a third strap lengthwise of the case binding the ends to the top and bottom. This tends to make a very much more rigid and compact package than the old -system of depending upon only two straps, and the extra cost is very small. The Packing Service has paid close attention to the interior packing of , all containers, and has insisted that the goods packed in cases or boxes should have the minimum amount of play on the interior of the case. About one-eighth inch is all that is necessary to allow for the shrinkage of the cases, and cases that are not packed in this manner are subject to serious ^ damage to the con- tents. The use of thin veneered boxes, bound together with wire or in some similar manner, has been found very unsatisfactory, except in the case of small boxes carrying light weights. It is the opinion of the writer that these cases should not be used except in packages not to exceed 35 pounds. In ordinary packing boxes, the wire system of strapping greatly reduces the liability of pilferage as knots can only be made with a patented machine and the wire cannot be removed, without cutting, nor be replaced without the use of this machine. As these machines are all numbered and registered, it is a very difficult matter to open the case and reseal it. The question of pilferage is a very serious one, and I have made a number of experiments toward perfecting as far as possible, a preventive against this evil and believe that in the very near future, we shall be able to ship packages with a greatly reduced chance of the loss of any of the contents. In the matter of crates, a great deal of care should be taken to see that the bracing is properly applied. A great many manufacturers build the frame of the crate in a strong substantial manner, but overlook the very important item of cross bracing, which is the binder that holds the fabric together. In, applying diagonal cross braces, they should always be fastened not only to the top member of the crate, but cut so as to fit and be fastened to the upright member. This will help distribute the strain should the crate be subjected to a fall or violent blow. Another point in crate building is the application of what is known as the three-way corner, that is the fastening of the horizontal and upright mem- bers so that they will be nailed three ways instead of two. In crating heavy machinery, skids should always be used under the sides of the crates. The Army specifications provide that the centre of gravity of the crate and its contents shall be marked with a white line and the skids notched equally distant from this line, so that when the sling lines are put under the crate they will fit in the notches and when the crate is lifted, it will always ride on an even keel, obviating .the possibility of slipping out of the slings and greatly decreasing the chance of striking a corner on the hatch-combing or edge of the dock. One of the most important features taken up by the Packing Service was the item of space saving, and methods of economy were devised and applied to nsarly all goods passing through this branch of the war work. Sometimes only an inch to a box was saved, but more often, particularly in large cases, the sav- ing ran from a cubic foot to the base, up to forty and forty-five cubic feet. . 256 SECX)ND PAN AMERICAN COMMERCIAL CONFERENCE Many machines are packed today completely set up. These could be partly dis-assembled and a saving of from forty to fifty cubic feet, according to the size of the crate or box, could be effected, without in any way impairing, the salability at the point of destination. This point is strongly commended to your attention as the Packing Service has spent a great deal of time, and is of the firm opinion that thousands of tons of ship space can be saved if the manufac- turer will pay attention to this point. In the matter of the proper packing of goods for export, I think that the case can be summed up in a very few words. If the manufacturer receiving the order from the foreign customer will invariably follow to the letter, the cus- tomer's instructions which always accompany the order, a great deal of diffi- culty experienced in the past, will be obviated. In other words, pack the goods the way the customer wants them packed, for you may rest assured that when he specifies the system of packing which may be unknown to you, he has some good reason for so doing, and he certainly has the right to expect that you will follow his instructions in packing as closely as you will his instructions in pre- paring the goods contained in the package. A very great improvement in packing over that which existed two years ago is noticeable and we feel that the manufacturer is anxious to take advantage of every means possible to procure the right package. To prove that it pays, I would like to add that up to the time that I was relieved as Chief of the Pack- ing Service Branch it has been estimated that this Packing Service which is a very small unit of the army organization, had saved for the Government between 400 and 500 million dollars by proper packing and space saving. As to details, I shall be very glad to cooperate with manufacturers in this important matter at any time. No more startljng economy was effected than in the matter of the baling of all equipage supplies — the system which was worked out in the Baling Plant at Brooklyn. This baling method showed a saving of approximately 100 million dollars over the old method of boxing. Does it not seem as though we were cheating a customer just as much by neglecting his packing as by not putting into the package what he has ordered and paid for? Let us build our commercial fabric on the same firm foundation that our Government is built upon and keep the faith with our foreign cus- tomers by giving them a square deal in packing. COMMERCflAL INTEGRITY IN LATIN AMERICA By Francis B. Purdie, R. G. Dun and Company, New York. / (Read at the Evening Session of Wednesday, June 4) • Delegates, must have noted that the thought uppermost In the minds of the principal speakers before this convention has been that the relations between the peoples of South America and the United States of North America must be established on a basis conceding equally of rights before there can be that inter- change of commodities which, carried along to the extent which we all appear to be hoping for, will eventuate in such a community of interests as will be of great and lasting profit to all the Republics in this hemisphere. I refer you" par- ticularly to the addresses made by Messrs. Redfield, Hurley, Gondra, Rojo, Van- derlip, Schwab, Villanueva and others. ' It is useless to deny that there was a time, not very far distant, when Latin America was considered by us as a field for exploitation. Such ideas as equality o'f rights, community of interests, and equal opportunities were hot apjferently meant to apply to the peoples of the countries south of us. There may be a few United States concerns today who will try to do business in the old way, but they are passing from the field ; their day is practically over. We need Latin American trade and the products of Latin America quite as much as they need our trade and our products, and we have learned here from the lips of some of our greatest industrial leaders and financiers that full recognition of' this has at last come, and we can now go to work together. Latins and -Anglo-Saxons, if I may for simplification so term our people, and build up TRADING METHODS 257 trade until we create that condition where both North an^ South America become an economic unit which is, as I beheve, the condition which should exist. It is a curious fact that the manufacturers of the United States have adopted a different method of procedure when pushing sales in Latin American countries, than has been their custom, and is their custom, at home. There are exceptions, of course, but I am speaking generally. In the United States is it not true that although the manufacturer sells to the jobber or to the retail merchant, he has almost invariably, and all the time, the ultimate consumer in his mind. You have only to read the advertising matter in the newspapers and magazines, to be convinced of the truth of what I say. If it is any article that is to be used or consumed by the individual citizen, man, woman or child, the individual is appealed to. His or her needs are studied, and in this way is created the demand which produces the sales, to the dealers. Are we doing this in Latin America? To a very, very large extent we are not. The people themselves are not being studied. Qur manufacturers approach the importers, and when assured of their financial ability to meet obligations, the appeal is made to them, and all the arguments are addressed to them, instead of, as we do at home, to those for whose use or consumption the article is intended. Why is this? It is, I think, largely because we have not taken the trouble to study the peoples of Latin America and have not bothered our heads very much to ascertain what their individual needs may be. We think, apparently, that we can leave that question to the merchants down there who have been ca- tering to their wants for generations, forgetting, meanwhile, that, as a whole, the people are in ignorance of what we can supply them that may better suit their needs and add more to their comfort and happiness than they have deemed possi- ble. I think I may have said sufficient to indicate to United States manufacturers that it is "up to them" to think of the trade of Latin America as they think of the trade at home, and to create demand where it does not now exist, by practically the same methods as they employ at home. May I say a few words on a subject which has not been fully understood, and, which, from my own experience, has been too frequently slighted even when attempts have been made to explain it. I refer to commercial integrity, or honor, as the. Latins more frequently term it. You will readily understand that in my business, the moral risk of the subject we investigate, is of more consequence than the financial. That is true here at home, where we have had expressions from the greatest financial authority of our generation, I refer to the late Mr. J. Pierpont Morgan, that, in his estimation, the moral side of a rjsk was of the first importance. He is even credited with having said that he would risk more on moral character than he would on financial strength. This is infinitely more true in Latin America than it is with us, for there is a code of honor down there, and when I say a code of honor, you must understand me as saying that it is a code and not an incidental thing. A few of us who have taken the trouble to study the Latin Americans un- derstand this, but, as a rule, according to my observation, it Is not understood, and as I consider it of the first importance, I would beg of you to try to under- stand it. It will more often that not, give you ease of mind and it will greatly facilitate your commercial intercourse, even if you do not follow up the inter- course on the social side, where it is absolutely necessary that you comprehend the code. Without entering into the subject at length, I will say that the majority of the Latin American peoples are descended from races which inhabited their con- tinent before the European knew that it existed. I mean civilized races, and you know that the distinctions in civilization are questions largely of environment. Even the terms barbarious and civilized are not absolute terms, they are relative, and again are questions of environment. Those of us who have studied the early American civilization know that they had reached a marvelous development, par- ticularly when you consider their isolation from the rest of the World, and one of the most striking features of the civilized state was the regard in which the spoken word or promise was held. A pledge made was sacredly carried out. and we have every evidence that this faith in verbal contracts has been transmitted down through the generations to the living descendantsof the old civilized peoples. Spanish honor is proverbial; under most conditions of life, it is taken for granted. No matter how we commercially minded moderns may differ in our 258 SECOND PAN AMERICAN COMMERCIAL CONFERENCE opinions of the Spaniard, we are at one, either consciously or sub-consciously, in granting that the World has been justified in holding to the belief that Spanish Honor does exist as a living thing and has its highest exemplification in the Spaniard's regard for his spoken pledge. Well then, if with the bk-od of the ancient people has been infused the blood of the Spaniard, have we not the right to expect a greater degree of safety in our dealings with this combination than we have any historic justification for expecting among any other people. I think we have. And these are the two points I wish to make clear in order to help you to a surer way of cementing relations of business and frendship. Study the wants of the people themselves, study their history and know with whom you are dealing. DIRECT SALES By Charles B. Williams, Underwood Typewriter Company, New York, N. Y. My remarks on this subject can only be general inasmuch as the manufac- turer will have to determine his own method of propaganda and sales. As a general proposition we should select high-grade representatives with a knowledge of both Spanish and Portuguese; this representative must have a thorough technical knowl- edge of the article he is presenting and should, if possible, be a man who has actually lived in and gained his experience from those countries, and on the theory that both the manufacturer and his product are unknown in that market, the per- sonality of this representative must be such as to inspire confidence. I believe that the initial work of getting a product started in the Latin Americas should be done by a man on whose judgment we can rely in every way, necessarily one of tact and real willingness and desire to give to the trade there just what they require; he should be a high-salaried man, because when sending out representatives working on a purely commission basis there is always the tendency for them to overstock the purchaser or, possibly, not making a connection with a firm which would ulti- mately prove highly satisfactory, because of the fact that some other firm for the moment might be induced to place a larger order. We must not overlook the fact that the Latin American merchant has been purchasing goods for a great many years, largely European, and when we go after those markets we have to show him that our proposition is clean-cut and of positive value. The representatives of competitive European firms will naturally take part in thoroughly digesting our propositions. Now, suppose that we do not have available a man who has the qualifica- tions I have just enumerated, or that he does not have a knowledge of Spanish or Portuguese! Send him down there anyway so that he can get first-hand informa- tion on the requirements of the market; let him make sure of the ultimate de- sirability of the firms with whom he does his first business and then when he re- turns here foster that account and give it the assistance of a representative who knows local conditions of the country down there and speaks the language, but not necessarily English. I cannot impress upon you too strongly the importance of sending to do the initial work men on whose judgment you can absolutely rely and do not expect to get into that market without risking the expense of sending a good high-grade man. Only recently I was approached by a group of bankers on the Pacific Coast who told me they were contemplating sending a man to Central and South America for the purpose of extending the business of their clients ; I asked them what salaried man they contemplated sending; the reply was "a $3,000 man." The position I took with them' was that a $3,000 man would in turn get in touch with $3,000 men down there, but if they wanted to make a success they would find a $10,000 man would be much the cheaper. The Latin American merchant is shrewd and he is reliable, as is evidenced by the failures in comparison with those of our own country ; you cannot expect to break him away from products which have made his business a success unless you give him a tangible benefit ; I neither believe in his prejudice against American goods nor his luiselfish desire to purchase American goods ; price, quality and reliability are what will appeal to him but these must be presented in the same businesslike way that we would go about it to sell a first-class concern here in the United States ; it is not an office boy's job, and if you send office boys down there in an attempt to get business you will find that his Latin brother has just as many aunts, cousins and grandmothers dying TRADING METHODS 259 with the attendant necessity of going to the funeral as ours here; he will also find his brother Latin American equally skilled in all his games and with pockets as capable and bulging as ours here, and just as frequently going home with the bacon as our boys here; in time they graduate from office boys and go on up the ladder until we find them successful and shrewd businessmen just like we have here but it would be naturally very unsatisfactory for the manufacturer to await this period of evolution in order to get his goods before the market. SHOULD WE MAKE GOODS "TO SUIT" THE LATIN AMERICAN MARKET? By Walter C. Kretz, of John A. Roebling's Sons Company, New York. (Read at the Morning Session, Friday, June 6) Several of our Latin American friends have raised the point in their speeches that American manufacturers, to gain a hold on South and Central American trade, must supply merchandise exactly as the buyer demands it, and they have let it be inferred that substitutes are offered for no very good reason, and merely due to lack of a desire to be accommodating. Now I should like to state the manufacturers side of the case, and these words are addressed specifically to the representatives of the Southern Republics who may be here. Let me ask in the first place just exactly what is meant by the request that we must make goods to suit "the market." Perhaps the best way to drive home the point of this question is by means of a specific example. I shall select a simple article, namely, insulated wire, which, as you all know, is used to carry electric current, and the market which I shall chose is Chile. What are the con- ditions there ? These : In Iquique, American sizes and types are standard; in Santiago and Val- paraiso, German sizes and types are standard; and in Talcahnano, British sizes and types are standard. These are all different. Will somebody kindly tell me what the "Chilean" market demands? The answer to this might be, that we should make all three kinds, and ship to each locality what they are accustomed to. The question then arises, can we do this? Yes, we can, but the party who would lose by it is the buyer. If you will glance at the map in this room, you will see that the total imports into all Latin America are only slightly more than one-third of the total imports into the United States, which means that they are quite small in comparison with the total value of merchandise actually manufactured and consumed in the United States. Even if then our manufacturers should succeed in garnering the entire South American import trade, this would take a small portion of their production. The greater part of their product is made to suit the American market, and all tools, patterns, dies, jigs, etc. are designed to turn out this product cheaply and efficiently. In a great many cases these tools cannot be used to make anything but our standard material. To return to our example : It would require new wire-drawing dies and various other changes in machinery, to make sizes and types different from our own, and if we did it, and sent imitation British wire to-Talcahnano, and imitation German wire to Santiago, what would the buyer gain? Absolutely nothing, for these other types are not one bit safer or better than American wire, and the German is, in fact, not as good. Besides which, these imitations are bound to cost more than our standard material, for the new tools, and the extra trouble must be paid for. And what is true of insulated wire is equally true of wearing apparel and machinery, and drugs and any number of other articles. The fact of the matter is that the Latin American markets have as standards those articles which happen to have been first imported; if they came from Eng- land, then British standards are accepted, and if they came from Germany, then that type is right, and if they came from the United States, then our goods suit. Now I ask, is this blind adherence to "what father used" progressive? Must shoes always have a long narrow toe because that is the Spanish or the French last? Can we not walk just as well in a different shape, and do we not 260 SECOND PAN AMEMCAN COMMERCIAL CONFERENCE gain something if we can buy that other shape made out of equally good leather, at a cheaper price? And that is why we North American manufacturers try to induce the Latin Americans to accept goods as we make them for our own people in large quanti- ties — because we know that our goods, when once tried, give satisfaction, and because we can sell them cheaper than imitations of what are often inferior articles. We realize full well that in the beginning the merchant finds little difficulty in introducing new types to his customers, but we believe that this difficulty is more apparent than real and that the effort devoted to such educa- tional work will find its reward in the ultimately greater satisfaction of the con- sumer. PRICE FIXING AS A FACTOR IN EXPORT TRADE TO LATIN AMERICA By Langworthy Marchant, Expert on Brazil and Portuguese Translator of THE Pan American Union. The question of price is too important a one to be overlooked by manu- facturers engaged in trading with Latin America. By the term price in this con- nection I mean, not the net price at which goods leave the plant, but the net price with all additions accumulated during the journey to the foreign buyer. It seems to be established at the present time that European manufacturers will not be able for a long time to come to supply the Latin American countries with goods at the comparatively low prices at which they did so before the war. They will be prevented by the increased cost of living and wages, as well as by a deficiency of raw material and the generally disorganized conditions of their indus- tries. There is therefore an outlook for a period of parity between the cost of manufacturing in the United States and Europe, and consequently" a greater facility on the part of American manufacturers to compete on equal terms in the markets of Latin America. It is observed, however, that this equilibration applies to the trades of the two sources considered in the whole. It is clear that on either side individual manufacturers may be able, through special efficiency, to land their output in Latin America at a lower figure than others who may be less efficient — may not command the same sources of raw material or whose management may be less economical. Consequently there is always room for competition in the mar- ket, both among manufacturers on one side or between those on different sides of the Atlantic. I do not wish to minimize the importance of other factors in the trade with Latin America, such as advertising methods, credit system and the manner of dealing which the manufacturer pursues with regard to his Latin American cus- tomer. All these things are immensely important, much more so than they are in relations of a manufacturer with his domestic buyers. But the fundamental questions which have so long obstructed the free expansion of American export trade are now in a fair way to a satisfactory adjustment. For instance, in the manner of financing shipments, manufacturers are now able, through the aid of the National Banks, the War Finance Corporation, and other general agencies, to avail themselves of great facilities in the working out of a credit system which frees them from the embarrassment which hindered their movements in the past. A great deal of progress is also being made by manufacturers in the acquisition of experience regarding appropriate methods of advertising and approaching Latin American customers. With the clearing away of these and other difficulties, the question of prices stands out more prominently in the problem. It has not become more important in the absolute, but it has increased in relative importance, and is destined to exert a great deal of influence in determining the success of manufac- turers in the Latin American field. Up to the outbreak of the war in Europe such American goods as found a market in Latin America did so on the strength of their intrinsic merits. They were articles of a superior order, which had not been produced elsewhere in exactly the same kind or quality. Consequently they stood in the market as privileged goods, and their manufacturers enjoyed a corresponding degree of freedom in fixing their price, being governed only by considerations of margin TRADING METHODS 261 between cost and net price, and of the paying capacity of the Latin American market. In other lines of goods, however, such as could be produced in Europe of as good a quality as in the United States, American industries were represented but sparingly and in many cases not at all. The prime reason of this is clearly that American manufacturers could not compete with the lower cost of produc- tion in Europe except by. appealing to the argument of superior quality for their own products. It is true that American manufacturers had not made any particu- lar efforts to engage the Latin American, or any other foreign market, being con- tent with the trade aflforded by the home consumption; but this circumstance is in reality included in the statement, since, if the foreign markets had afforded scope for profit, American manufacturers would, in obedience to a natural law, have adapted themselves of such conditions, developing the necessary efficiency m order to secure the corresponding advantages. In these general lines the only competition upon which Europeans had to count, except as among themselves, was that of the rising industries of the Latin American countries. These native industries have now attained some degree of developjnent, chiefly in Mexico, Brazil and Chile. But whatever progress they have shown is due in a great measure to the tariff regime instituted to protect them. Prior to the outbreak of the war these high duties acted chiefly as a curb on imports from Europe. They affected American imports in a lesser degree, for the same reason which enabled them to resist the conditions of the lower cost price of the European article — that is, owing to their superior quality and the corres- ponding prestige which they held in the mind of the Latin American public. At the present time, with the exception of a few American articles which are favored in the tariff law of Brazil, European and American producers stand on about the same footing with regard to the native competition of Latin Ameri- can countries. It is well to notice in this matter of native industries that not all of them utilize native raw materials. Under the protection of the law some industries flourish which do not utilize raw material at all, but partly finished products imported from other parts of the world including the United States. This con- dition of course affords an opportunity to American manufacturers of partly finished materials and machines utilized by these native industries. On the other hand it may be remarked that these native plants are not as a rule prepared to turn out the highest grade of products. They are calculated to satisfy the wants of the poorer classes and some of those of the better classes, who cannot always, but sometimes can and do, afford the luxury of the imported article. In some lines it may be convenient for American manufacturers to produce high class articles and price them accordingly, just as was the case before the war. This, however, can no longer constitute a general policy, for it would curtail Amerian trade without affording any compensating advantages. The higher price obtained in the limited trade would not balance the returns obtained from a large volume of trade in cheaper lines. What I mean is that manufacturers should get rid of the idea they must send to Latin America only the highest grade of their output. On the contrary it is best for all parties concerned for them to supply the Latin American importers with several grades, just as they do -^ith regard to the home market. It is well to remember that in the Latin American markets, as in any other market, for that matter, the consumer often finds it con- venient to buy an article which he knows to be of middling grade, because he cannot afford to pay the higher price demanded for the better one. In doing this it is his object to save money at the expense of durability while looking after the appearance, and he pays the lower price well aware that his purchase will not last so long as the article left on the shelf, but that while it does last it will serve his pur- pose equally well. Please note that I am not advocating anything like the wholesale dumping into the Latin American markets of a mass of half worthless stuff such as made up a considerable portion of the trade of the Germans before the war. I do not recommend anything tending to bring discredit on the American industry by the flooding of the Latin American markets with, inferior American goods. In fact everything you ship should be of a quality which you need not be ashamed to recommend. What I suggest is only that you send out a series of grades just as you do for the home market in order to consult the limitations of the con- sumer's purse, and thus avoid forcing him to supply himself elsewhere with goods which may possibly please him less than yours. With such an arrangement of grades the manufacturers can construct a corresponding scale of prices which will 262 SECX)ND PAN AMERICAN COMMERCIAL CONFERENCE enable him to secure a large amount of trade lying between the limits of qualities and grades supplied by competitors of all sorts. From what has been said it can be seen that American industries as a whole have now before them in Latin America an infinite variety of opportunities, of which they will avail themselves or not according to their willingness to ada^t themselves to conditions as indexed by the prices of competing concerns. Here is room for each manufacturer to study the prices as he finds them in the market which he proposes to enter, and scale his own prices so as to consult, better than his competitors, the multiple requirements of his customers^ bearing in mind that American goods will bring higher prices than the native articles of the same class, but that the difference must lie within the bounds of the customer's budget. As was said a moment ago, in all the present considerations, reference is had to the price of the goods as they reach the importer, that is including c. i. f. rates and duties. The adjustment of quotations to the consumers is a matter per- taining to the local market. It stands, however, on the basis of the average prices which the general body of wholesalers pay for their stock. The question now presents itself: Is it possible for a manufacturer, say at Dayton, Ohio, to control the price at which a shipment of his goods will reach an importer in Rio de Janeiro? Not in the absolute, since the problem rests in part on conditions over which he has no dominion ; on general economic conditions in . this country and in the world at large governing the cost of labor, raw material, transportation, insurance, customs, duties, etc. In a relative sense he can, owing to the choice it is in his power to make of the agencies employed in carrying on his trade. It is clear that if a manufacturer does his advertising and carries on his dealings with his Latin American customers through representatives who are bound by stipulations as to price; employs express and forwarding agencies whose functions are confined to this capacity, or does his own forwarding, he will be in a position to control his outlay for c. i. f. rates and at the same time protect the importer as regard proper classification of the goods in the Rio custom house by attending directly to the packing and invoicing. If, however, he should deal through export commission houses — excellent institutions in their way, and often convenient and necessary — ^^he cannot exert any control on any one of the con- ditions which govern the price at which the goods will reach the importer except- ing of course the net price at which they leave the plant, or at most the f. o. b. Neither can he do so if he does his selling through local dealers to whom he has granted an agency with exclusive territory unless, of course, he has made some very stringent stipulations with the latter in the matter of price limits. This is true in general terms in dealing through local buying agents. In this regard the conditions are in a manner the same as those obtaining when the trade is carried on through export commission houses. The manufacturer is necessarily placed in the background, not being able to govern his trade in the matter of prices any more than he is able to come in direct touch with his customers, popularize his name and brands and stabiHze his position in the market. Besides these elements of price-fixing, which depend more or less on the manufacturer and the way in which he goes about laying his plans of merchan- dising, there are others of a more general nature which depend for their solution rather on organized action than individual effort. These include matters of ship- ping, importation of raw material and foodstuffs and a number of complex sub- jects of special discussion in other parts of the program of this Conference, and need not be dwelt upon within the limits of this paper. From the premises outlined above, we are able to draw the following con- clusions : The question of price assumes more importance at the present time owing to the approaching adjustment of other questions which have embarrassed manu- facturers in the past. American manufacturers enjoy opportunities to supply an infinite variety of lines and grades, provided they conform with the price conditions obtaining in the Latin American markets. The best method by which a manufacturer can control his price to importers is doing his own exporting, and dealing with his customers through representa- tives bound by stipulations or through branch houses of his own. TRADING METHODS 263 LATIN AMERICAN HETEROGENEITY IN ITS RELATION TO TRADE By C. Grand Pierre. Manager Trade Development Work, F. C. Luthi & Co., Inc., New York City. "Se connaitre, c'est s'aimer" — (To know one another is to love one another.) This is an unusual beginning for a speech on business, yet the Honorable Minister of Haiti, Mr. Charles Morovia, quite rightly expressed the thought that knowledge creates sympathy — sympathy breeds interest — interest stimulates study — and study is one of the essential elements of successful commerce. The wonderful papers we have heard and the discussions we have enjoyed have manifested an intense desire on the side of all members of the Conference to learn. Yet they have disclosed the fact that the majority of the North American delegates are as yet ignorant of many things, the knowledge of which is essential if we want not only to bring about, but maintain, the intimacy of Pan American commercial relations of which we are dreaming and which we all desire so much and the realization of which the Pan American Union has been working for so many years One of the most common mistakes of North America exporters is to con- sider "Latin America" as a unit — as one single field or market; in fact, there is probably no large part of the world or no continent composed of as many hetero- genous elements, whether we look upon that continent from a geographic, ethnic or a commercial point of view. From a distance this "Latin America" may seem to us sufficiently alike in all of its parts to appear as a unit; however, as soon as we near one of its sides we soon discover that there is between Latin Americans as great differences as between Europeans from the North and from the South. Let us first look at the racial composition of Latin America. Beginning at the southernmost end of the continent we first find the pure blood Indians of Tierra del Fuego, then white oasis in the Province of Magellan of Chili, and then again vast territories sparsely populated with pure blood Patagonian Indians, and a smattering of pure whites. The rest of Argentina and UAiguay is practically pure white, and the white population of both of these countries, although of Spanish civilization and speaking the Spanish language, is at least three-fourths of non-Spanish blood, of recent immigration. Crossing the Andes into Chile we find a large proportion of Indian and mixed blood, and a very much smaller proportion of recent white immigration, but a larger percentage of old non-Spanish immigration, mainly Irish, English and German, which has already been thoroughly assimilated for three or more genen- ations. These differences of racial origin, much more than the differences of climatic conditions, account for the vastly different character of the population of these three countries, and for the difference in their business methods. Paraguay is an entity by itself. Besides a small number of pure whites and Indians, the majority is of mixed blood, which has already been so thorckighly amalgamated that the Paraguayans can hardly be called "meztizos," but indeed have become a race by itself. Bolivia occupies a unique ethnic position in the Southern hemisphere; the majority of the population of the Highlands and of the Northwest slope of the Andes is of almost pure Indian blood ; on the other hand, that of the Southeast ter- ritories is almost pure white. Unlike in Peru and Brazil, for instance, the upper class of Bolivians counts among its most influential members a considerable number of pure blood Indians, who in culture do not in any way stand second to their white co-citizens. The majority of the population of Peru is of mixed and Indian blood, but there we find what our patrician American Southerner would call "poor white trash," and a somewhat numerous, yet highly cultured, pure white patrician class, almost aristo- cratic, which has not forgotten the royal grandeur of Peruvian vice-regal types. It is impossible to speak of Brazil as of an ethnic entity. Its three Southern States are pure white, or nearly so, with a strong recent immigration, mainly German. Sao Paulo is also white, but about half of its population is pi recent Italian origin. ^CW SECOND PAN AMERICAN COMMERCIAL CONFERENCE The farther North we travel in Brazil, the darker becomes the skin of the population, until we reach almost pure Indian or negro blood, with only a sprink- ling of highly cultured white in the cities. The populations of Colombia and Venezuela have a strong admixture of negro blood in the Atlantic Coast regions, but in inland provinces there is ■ very much less of an admixture of Indian and white blood than in other Latin American countries. Costa Rica and Salvador are populated mostly by whites ; the other coun- tries of Central America have considerable Indian and mixed populations and an increasing inffeix of African blood in the Gulf Coast regions. As we all know, Haiti is almost pure black and of French civilization, while Santo Domingo is mainly mulatto, with a strong remaining strain of Carib blood, and of Spanish language and civilization. An interesting fact about South American Indians is that those in t!ie Southern part of the continent have fairly pate skins, while those in some parts of Colombia are black-skinned, even darker than most negroes. They are, however, Indians, not Africans. Another interesting fact is that the San Bias Indian, of Panama, is, accord- ing to ethnologists, probably the purest race of men on earth. With such important ethnic differences in the various parts of South America one can easily understand that there are no similar tastes and needs, but that also business ethics and methods are different. The failure of many American ex- porters, who circularize indiscriminately everybody everywhere alike in countries Sofuth of the Rio Grande, is very often due to ignorance of these facts. But the historical differences are even greater than are the ethnical differences. For instance, the Spaniards found in Peru and Bolivia are peaceful races of natives who did not even know how to defend themselves against a handful of invaders. Part of the present Peru became a vice-regal seat of Spanish power in South America, and soon vied with Spain itself in splendor and luxurious living, indolence and aristocratic right. Further South the Spaniards met the war-like Mapuches and Aracanian Indians and had to fight practically every foot of their way South. In the pampas of Argentina the Spaniards found very few Indians and were able from the be- ginning to indulge in a peaceful pastoral living. Gentlemen, if you will bear in mind these great historical differences, you will understand the widely Hifferent character traits \>i these three named divisions of Spanish-American civilization. Minor historical facts explain also more or less known characteristics of the white population in certain parts of South America. For instance, at the time of the buccaneers, the more cultured Spaniards in Gulf Coast territories endeavored to escape the constant strifes. After the Spanish Main large groups of them emigrated inland and endeavored to avoid these in the vastnesses of Colombia and Venezuela. This is why one finds most Spanish culture in out-of-the-way places, such as Corpayah, Bogota, Caracas, etc., and parallel with them business methods and business ethics vary very much from those of Buenos Aires and Valparaiso. Political differences are also very great. Uruguay, for instance, has had two administrations and congresses, in majority socialistic. The present administration of Argentina, while not socialistic, is known to have unusually progressive tend- encies. After a series of autocratic governments, first of the Society of Jesus, then Blanco "EI Supremo," and the Lopez, Paraguayans gave themselves a wonderfully democratic constitution, but at the same time a period of revolutionary troubles until they finally settled to what is practically the first attempt at a national com- mission form of government. The Chilean political instability was ended by fair play in politics by an unwritten law of a fair representation of all minorities. In Bolivia the majority of the pure blood Indians are absolutely ignorant of politics, and do not care who rules thern nor how they are governed, provided they are not troubled in their personal activities and not overtaxed. The Indian "Meztizes" of the Peruvian Island, on the other hand, is a born politician ; nothing pleases him better than "brass band" politics and elections. Frequently elections are annulled by the authorities, but that does not trouble the voter of the Peruvian altiplano, "as there will be another election by and by." These few instances of political differences in Latin America will suffice to explain the wide differences in commercial laws and regulations in the various coun- tries of the Southern Continent. TRADING METHODS 265 Commercial methods also differ vastly. Books may be written about them. Allow me to merely outline a few facts. The larger trade centers of Argentina, Uruguay, Brazil and Chile are in- tensively developed commercially, and their business methods are generally adapting themselves to North American requirements. However, too much emphasis can- not be placed on the fact that Chile is not one, but several markets. The Province of Magellan, for instance, is economically absolutely independent from Valparaiso. The intensively developed-industrially active District of Concepcion, and Valdivia, is not at all economically dependent upon Valparaiso, of Santiago. Both Southern and Northern Peru submit to the political supremacy of Lima, but rebel at the mere idea of being made economically dependent upon the capital. In business methods also the differences are great. Business may easily be developed in Argentina, Uruguay, Brazil and Chile, by judicious circularizing, ad- vertising or by traveling salesmen. Some business may be obtained by the same methods in Peru. However, probably half of the foreign trade of Peru is con- trolled by less than half a dozen large British and American firms, and by no more than twenty old conservative Peruvian firms, whose trade would hardly be in- fluenced by circulars or by the volubility of a drummer. Even nearer to us we have, for instance, characteristic differences in the same island. The trade of San Domingo is very much divided and constantly changing. There salesmen of the drummer type who speak Spanish and have the right kind of goods at the right prices will bring back orders. In Haiti, on the other hand, there is very much less subdivision, as the trade is in the hands of a snjall rlurober of large and exceedingly conservative firms, who seldom care to change old established foreign relations. Not only the various parts of South America differ with one another very largely, but the methods of various European countries have differed very much in their endeavor to obtain Latin American trade. In Argentina and other countries the British have obtained a large share of trade in investing in railroads and large enterprises. In West Coast countries the British have large commercial houses, not branch offices of London firms. The Germans have endeavored to monopolize trade by filling huge warehouses with cheap goods and sending groups of salesmen with carloads of trunks even into remote villages. The French have, on the other hand, until the war, obtained and retained a large share of the Latin American trade, without any of the means mentioned above, biut very largely by sending every few years a member of the firm — a son, a nephew or a near relative of its owner — on a friendly visit to maintain the personal contact between the old and the new world. Now, gentlemen, I trust that the few facts which I have taken the liberty to lay before you will stimulate you to serious study of Latin American countries and their people, so that the United States may not merely obtain, but legitimately re- tain, the proponderant commercial influence in the Western hemisphere. 266 SECOND PAN AMERICAN COMMERCIAL CONFERENCE WEIGHTS AND MEASURES THE METRIC SYSTEM AS A FACTOR IN PAN AMERICAN UNITY By George Frederick Kunz, President of the American Metric Association. (Read at the Afternoon Session of Wednesday, June 4.) Three principal factors for the realization of Pan American unity, and for the preservation of amicable relations among all the American countries. South and North, are a mutual understanding of the psychology of the several nations, a decimal currency, with, if possible, a single unit of exchange, and finally, a single system of weights and measures. Most international disputes are due to misunderstandings and these are happily dispelled by such friendly conferences as those of the Pan American Union. The second of these factors has been realized in part in the greater number of Latin American countries, but unfortunately there is, as yet, no common currency unit. Cuba, while preserving the name "peso," has adjusted its value to that of our dollar, and the dollar is the vmit in British Honduras, as it is in Colombia also. In this last-named country, however, the value falls a few cents below that of the United States dollar. Peru forms an exception, having chosen for its money unit the libra, an exact equivalent of the British pound sterling, this being divided into IC soles of 100 centavos each. It would assuredly constitute a great simplification of the exchange conditions between Latin America and the United States if the dollar, with its value as ours, could be made the single unit for all the American countries. Of course where internal financial conditions prevent the consistent application of a geld standard, variations, more or less violent in the rates of exchange on paper money cannot be avoided, whatever may be the nominal unit. As a step in the right direction of the metric system, the decimalization of the coinage has found some favor in England recently, the present florin (a two- shilling piece) being proposed as a new monetary unit, since it is exactly one-tenth of a pound sterling. As the British farthing is 1 /96 of a florin, an exceedingly trifling reductioa of its value would miake of it a "cent" representing the one-hun: dredth part of the florin and worth only a very small fraction less than one-half of the United States or Canadian cent. Another idea has been to add ten-pence to the value of the pound, which would then contain 250 pence or 1000 farthings of unchanged value. A new florin, as the tenth of this new pound, would then be worth 100 farthings. Here follows the Coinage units and standards of the South American, and Central American nations, and of Mexico. Value G. Argentina — Peso $0.9648 Currency: depreciated paper, convertible at 44 per cent of face value. Exchange rate about 42% cents. G. Bolivia— Boliviano 0j3893 12%- bolivianos-^1 G. Brazil— Milreis 0.5462 Currency: Government paper. Exchange rate about 25 cents to the milreis. G. British Honduras— Dollar 1.000 G. Costa Rica — Colon 0.4653 S. Guatemala— Peso , 0.4969 Currency inconvertible paper. Exchange rate 40 pesos=^l. S. Honduras— Peso 0.3537 Currency: bank notes. Exchange rat;e about 35 cents. G. Nicaragua — Cordoba 1 .000 S. Salvador— Peso 0.3537 Currency convertible into silver on demand. Exchange rate about 42 cents. G. Chile— Peso 0.3650 Currency: inconvertible paper. Exchange rate approximately 14 cents. WEIGHTS AND MEASURES 267 G. Colombia — Dollar „ „.. 1.000 Currency : inconvertible paper. Exchange rate approximately $105 paper to $1. G. Cuba— Peso _ 1.000 G. Ecuador— Sucre 0.4867 G. Hayti— Gourde 0.9647 Currency: inconvertible paper. -Ex<;hange rate, approximately 16 cents. G. Mexico— Peso „ 0.4I98S Exchange rates fluctuate violently. G. Panama — Balboa 1.000 S. Paraguay— Peso 0.4969 Currency : depreciated paper. Exchange rate 1.550 per cent. G. Peru— Libra 4.8665 G. Uruguay— Peso 1.0342 G. Venezuela— Bolivar 0.193 G., gold standard; S., silver standard. The war, our dealings with other nations, and the need for greater efficiency here in America have combined to bring meters, liters and grams to the atten- tion of all who read. ^ The metric movement is uniting the National organizations, firms and in- dividuals who are interested in securing for America the advantages of the general use of metric weights and measures. Among the National associations that are members of the American Metric Association are: American Association for the Advancement of Science. American Chemical So.ciety. American Drug Manufacturers' Association. American Institute of Chemical Engineers. American Pharmaceutical Association. Institute of Makers of Explosives. National Association of Retail Druggists. National Canners' Association. National Scale Men's Association. National Wholesale Druggists' Association. National Wholesale Grocers' Association. The World Trade Club of San Francisco purposes to continue its part in the metric campaign until success is attained. Their extensive distribution of metric literature and a blank form of petition addressed to the Executive Officers of the United States and Great Britain is a splendid example to Clubs and As- sociations wherever meters, liters and grams have not yet come into general use. Our work of compiling and editing "Metric Weights and Measures" in co- operation with other National organizations, and securing and sending out infor- mation, is showing encouraging results. This is seen in the modern and more practical instruction in the metric system as applied to practical work; the more general use of metric equivalents on labels for groceries, medicines and other com- modities; and in the ever increasing use of metric weights and measures. The substance of the third edition of our booklet has been approved by National organizations on both sides of the Atlantic including The Decimal Association of England. . , . , j- • ji There is wide interest during these reconstruction days in the friendly metric race between the United States and England. The Decimal Association, and the Manchester and District Decimal Association of England are determin- ed to secure, as soon as possible, the advantages of decimal currency and the decimal metric weights and measures. t, • • ^ t. i- Last year some publicity was given to a portion of a British Parliamentary report adverse to decimal currency and the metric weights and measures. Letters arriving from England later, however, indicate that this report has been roundly criticised and has only brought the need for decimal currency and the metric weights and measures more forcibly than ever to the attention ^)f the British public. Commenting on the report in question, Mr. E. Merry of London writes on June IS, 1918, as follows: 268 SECOND PAN AMERICAN COMMERCIAL CONFERENCE "Since then the Decimal Coinage Bill has been read a second time in the House of Lords and while the result was not exactly what we had hoped for, yet it was, on the whole, quite satisfactory. ■'There was practically no opposition to decimal coinage as such. The Government expressed the opinion that this was not a favorable time to make the change (though it was never proposed that the coinage should be altered now but only preparations should be made for the new coinage to come into effect after the war) but suggested putting the whole subject before a Committee com- posed of Members of both the Upper and Lower Houses and on this understand- ing Lord Southwark consented to the bill being adjourned. The Committee I understand will be formed almost immediately and the subject will be thoroughly threshed out." Mr. Harry Allcock of W. T. Glover & Co., writes : "I am enclosing a copy of the Decimal Coinage Bill which is now before the House of Lords. On the motion for its second reading it was adjourned by consent on the understand- ing that the subject would be referred to a joint Committee of the two Houses of Parliament. It is expected that this Committee will be shortly appointed, and in the meantime it is interesting to note that Lord Balfour of Burleigh said in the above Debate that he was satisfied that the subject deserved further and more exhaustive consideration than his Committee had been able to devote to it." While legislators have been (iiscussing the metric system, our practical Eng- lish cousins have been quietly extending its general use. Rainfall, for instance, is officially measured in millimeters, instead of fractions of an inch. Word has come from the Manchester and District Decimal Association that ' the design and manufacture of British magnetoes is conducted solely in the metric system. One of the most important actions taken at the Inter-Allied Conference held in November, 1917, was the establishment of .the Inter-Allied Scientific Food Commission. This, as have other Commissions, adopted the metric system for estimating the weights of the various foods produced in each allied country. The amount of food required for individuals and nations is also given in grams. The minimum portion of fat, for instance, for one man per day is given as 75 grams. The following brief explanation of the use of metric weights and measures reveals the reason for the 50% that is saved in teaching the subject of measure- ment and in calculations of nearly every kind by the use of the meter, liter a/id gram. As the dollar, the unit for American currency, is divided into 100 cents, so the meter, the metric unit of length, is divided into 100 centimeters. The centi- meter and meter are the metric measures of length in common use. For example, if a man's regular step is 75 centimeters, in 100 steps he will cover 75 meters (75 centimeters x 100=7500 centiraeters=7S meters). Fast walking will cover about 100 meters per minute, 1000 meters in ten minutes, and 6000 meters or 6 kilometers per hour. The liter is the metric unit of capacity, and is divided into 1000 equal parts called milliters or cubic centimeters. The canteen used in the United States Army holds about one liter. One milliter or cubic centimeter of water weighs 1 gram, which is the metric unit of weight. The United States five-cent piece or nickel, when new, weighs exactly 5 grams, one gram for each cent. Also the ten, twenty-five, and iifty-cent pieces are made according to the ratio of 1 gram for each four cents. Five grams is also the weight of the French silver franc. Coins of nearly all countries may be used as metric weights. The meter for measuring length, the liter for measuring capacity, and the gram for weight is the sum and substance of the metric system. These three units (meter, liter, gram) together with the following divisions and their ab- breviations are winning their way into general use because they are easy to learn and to work with, and best suited for practical purposes. C 10 millimeters :^1 centimeter 10 mm^l cm LENGTH < 1000 kilograms =1 meter 100 cm =1 m i 1000 grams =1 kilometer 1000 m =1 km CAPACITY 1000 milligrams =1 liter 1000 ml =1 1 ( 1000 milliters =1 gram 1000 mg =1 g WEIGHT < 1000 meters =1 kilogram 1000 g =1 kg ( 100 centimeters =1 metric ton 1000 kg :^1 t WEIGHTS AND MEASURES 269 Their use is illustrated in the following averages of measurements taken of rnen about 18 years of age; height, 171 cm; weight, 58 kg; chest girth after ex- piration, 81 cm; chest girth after inspiration, 90 cm; lung capacity, 4150 cm^ or cc. The so-called old weights and measures in South America are the Spanish and the Portuguese. The Portuguese vera is, however, 120 centimeters and is usually spoken of as 120 cm instead of a vera. The Spanish vera has different values in several different provinces, but in all cases its value is given in metric terms. The gallon, when spoken of in Latin America, usually refers to 4 liters. Where the Portuguese, Spanish or other names survive they in nearly every case refer to definite and well understood metric weights and measures. Mr. E. C. Perez, Consul-Gerieral of the Argentine Republic at New York City, is thoroughly familiar with conditions in South America. He writes to the American Metric Association as follows : "Replying to your letter of the 21st inst. I have the pleasure to state that in all the South American continent the metric system is in current use, although in some countries other measures are also used, especially the ancient Spanish system of weights and measures. The Argentine Republic adopted by law the metric decimal system in the year 1863 and it is not permitted in any public or private document to establish a measure or equivalent of other system of weights and measures, without stating at the same time, the equivalent in accordance with the decimal metric system." The Irving National Bank has had wide experience in dealing with the Latin American countries. Their excellent book published in 1917, entitled "Trad- ing with Latin America," considers the matter of weights and measures. On Page 81 is found the following statement, which is corroborated by well-informed business men. "From the first, measurements, quantities, weights, etc., should be converted into the metric system. It is highly important to realize that th^ metric system prevails in all of the Latin American countries and business is facilitated by employing it." It should be clearly borne in mind that the British system is based upon the British yard, whereas all United States weights and measures have been based upon the metric standards since April Sth, 1893. There is a discrepancy, for instance, in regard to weights and measures, of 20% between the British and American liquid measures. The metric system, however, is legal in both countries as they are legal or compulsory in every other country on earth. The striking diversity in the value of the various chief metals, precious and otherwise, can be seen at a glance in a list, where the exact weight of a cubic centimeter of each is given with the value of this quantity at ruling prices. It will be noted, as a proof of the simplicity of the metric system, that when once the specific gravity of a substance is ascertained the exact weight in grams of a cubic centimeter is known without further calculation, for the cubic centimeter of water weighs one gram. The common adoption of the metric system by the states of Latin America is already a bond of union among them, and its general adoption in the United States and Canada would bring both the Americas into agreement in this particular. The commercial advantages afforded thereby is a most important argument in favor of this, entirely apart from the superlative merits of the logical metric system, when compared with the many and chaotically related units of other systems. The adoption of the metric system renders it easier for the children and adults to secure an education and to think and work logically and well. It binds the nations together by the common use of the international metric standards. It is best for the people and the people will secure it for thfeir permanent good. There have been many other weights and measures used but unfortunately they have not been conveniently related to each other nor as well suited to the needs of man- kind as are those of the metric system. To escape from this "confusion worse confounded," into the simple, logical atmosphere of the me1;er for length, the liter for capacity and the gram for weight would be like leaving purgatory (or a worse place) for the Elysian Fields. ' It has been my privilege to have directly induced the substitution of a metric unit for an unending confusion of jewel weights. In 1893, at the Columbian Expo- sition in Chicago, I advocated the introduction of a new carat, making .5 carats to the gram. Another important advantage is that in packing containers of any product, they can be expeditiously and systematically arranged in cases holding tens, hun- 270 SECOND PAN AMEMCAN COMMERCIAL CONFERENCE dreds, or thousands, the layers of containers being so laid that a definite metric quantity can always be removed without delay. We have intentionally reserved our first factor to the end, for we are fully persuaded that nothing can better pave the way for a good understanding among the American nations than uniformity of currency and of weights and measures, for this will obviate many causes of misunderstanding and dispute, and will aid powerfully in developing trade among these nations. Still, true reciprocity can never be attained without a sympathetfc study of the differences in manners and customs in the various countries. Instead of seeking to extinguish these differences, or criticizing them in a narrow and unfriendly spirit, we should rather see their good side as expressions of different types of civilization and humanity, and we should welcome the ex- istence of a pleasing diversity rather than long for what might well prove to be a monotonous uniformity. From nation to nation the feeling should be such as it is often between two individuals of the same nation, where persons of different temperamental and mental qualities frequently make the best of friends, their re- spective qualities and defects proving mutually complimentary, as Tennyson put it of his great friend, Arthur Hallam, "his unlikeness fitted mine." PAN AMERICANISM IN WEIGHTS AND MEASURES By Frederick A. Halsey, Commissioner, American Institute of Weights and Measijres, New York. (Read at the Afternoon Session of Wednesday, June 4) At the foundation of the case for the metric system is the claim that that system is better than others. It is quite true that some who have tried it report that they find it better, but, on the other hand, others report that they find it no better and even not so good. It is, however, impossible to take a census of in- dividuals in this matter, and it is also unnecessary because the judgment of the world has condemned the system, and the clearest verdict of all comes from France. The metric system was originally promulgated in France by compulsory law in 1793. Those laws remained in force for 19 years, or until 1812, when, under Napoleon, who had no faith in the system, they were repealed and the people were permitted to resume their ancient measures. This they promptly did, reverting to that truly universal system in which 12 inches make a foot, 3 feet make a yard and 16 ounces make a pound. In order to distinguish this system from the metric system by name, it re- ceived the official title the Systeme Usuelle — a name which, in two words, tells the whole story. This Systeme Usuelle continued as the common system in France for 25 years, or until 1837 when the metric force laws were reimposed. If the metric system is better than the ancient system, were not 19 years of its enforced use sufficient to demonstrate the fact? What other . explanation of this reversion to old units is possible except that the French people found them better adapted to their purposes than the new ? There is no other possible ex- planation, and it should be noted that we have here not the opinion of a few individuals but the verdict of a nation. To the people of no other country has been given this opportunity to ex- press their preference between the two systems after a trial of the new, but the verdict of Latin America is unmistakable. The system was adopted in most of the Latin American countries more than half a century ago — ^in the decade between 1850 and 1860— and today the people use it only to the extent that they are com- pelled by law. In but one country — Uruguay — ^is it really adopted for domestic purchases and sales and this because of laws, which, to us easy-going Anglo-Saxons, seem fairly grotesque, and, moreover, even those laws are but partially effective as, in spite of them, we find many exceptions. Argentina and Venezuela also have drastic laws but they are not, apparently, so rigidly enforced, as in those countries we find a much larger use of the old measures. In all Latin American countries the use of the system is in exact .accordance with the severity of the laws, and in most of them, among the people. WEIGHTS AND MEASURES 271 it is used but little. In ten of them it can scarcely be found in popular usage while in five, the English units are used far more than the metric, although these five, like the others, are, in metric literature, claimed to be purely metric. Is not half a century of tutelage enough to demonstrate the advantages of the system, if they exist? Is it not clear that the people of Latin America continue to use the old units because they find them better adapted to their purposes than the new ones? The facts given are the results of an extended investigation conducted by the American Institute of Weights and Measures by means of a questionnaire which was circulated broadcast throughout Latin America with the assistance ofl the National City Bank, the United Fruit Company, W. R. Grace & Company and the Hill Publishing Company, all of whom forwarded the questionnaires — duly trans- lated into Spanish and Portuguese — to their branch offices and correspondents. The results of this inquiry have been summarized in a. Report on The Weights and Measures of Latin America, published by the American Society of Mechanical Engineers and it should be noted that since its publication some re- markable confirmations of its findings have appeared. The preference of the people of Latin America for the ancient system is not confined to usage in domestic purchases and sales. We have an accurate census of the machine tools in Latin American shops and factories which is a striking- example of this preference. For the benefit of the non-technical reader it should be explained that machine tools are the machines with which machine shops are equipped. They are the foundation ' of modern mechanical industry, being the parents of all other machines of whatever kind and purpose since all parts of such machines are made thereon and on them every dimension of every part is determined. This is true even of the implements of war as the world has recently learned, war being, in fact, the child of the machine shop. The census of machine tools in Latin America under pre-war conditions shows that 39.3 per cent thereof were made in the United States and 43.2 per cent in Great Britain — a total of 82.5 per cent having been made to the EngHsh system, while the remaining 17.5 per cent were made in France, Belgium and Germany and to the metric system. In other words, Latin American factories have shown their preference for machines made to English over those made to metric measures in the ratio of nearly 5 to 1. Knowing these facts as they do, do you think that our manufac- turers of machinery will follow the advice of these well-meaning gentlemen who have no knowledge of the industry but who tell us that Latin America will not buy our machinery unless made to metric measure? Contrasting the facts with this claim, how much respect can you have for the knowledge of those who make it? Next, I wish to point out that while the system has been repeatedly adopted under high hopes by industries in the United States and Great Britain, it has not made good its promises. Twenty years ago, the Library Bureau was the star example of the progress of the system in this country. At the foundation of that industry the system was adopted for the manufacture of its products and I have in my office a statement made by a representative of that organization before the House of Representatives Committee on Coinage, Weights and Measures in 1906 in which the system was extolled to the skies and its supposed advantages set forth. Nevertheless, after thirty years use, the system was abandoned by the Library Bureau, which now manufactures its products to the English system. A similar example is found in Great Britain where in the decade of the 90's the Willans & Robinson Company of Rugby was organized for the production of the Willans high speed engine for which the metric system was adopted. While continuing the system for the production of this engine, because of the difficulty of a change and the necessity of continuity of production, the system was, after 20 years, abandoned for all new work, and Willans and Robinson sum- marizing their experience in these words : "We are satisfied that the adoption of the metric system has cost us a great deal in gages and special tools without adequate return." Similarly, the Ericsson Manufacturing Company of Buflfalo, New York (manufacturers of the Berling magneto), report that while ten years ago they used the system exclusively, but they have now abandoned it. The pioneer American watch factory — ^the Waltham factory — adopted the system early in its history. The Waterbury, (now the IngiersoU) Works was 272 SECOND PAN AMERICAN COMMERCIAL CONFERENCE established by men from the Waltham Company, who carried the system with them, but beyond that the influence of the Waltham example has not gone, all other American watch factories following the English system. Similarly, the pioneer makers of steam boiler injectors (Williams Sellers & Co.) adopted the system for that product, but none of their competitors has followed their example, all other makes of injectors being to the English system. In the cases of watches and injectors, would not the advantage of the system, if it had any, have led to its use by others than the pioneers and is not the fact that others have not used it satisfactory proof that it has no such ad- vantage? Moreover, WilUam Sellers & Company, who adopted the system for this purpose about 1860 and thus have a longer experience with it than any other American manufacturer, now say: "Our experience with the metric system, extending over SO years, does not encourage us to extend its use beyond the borders of the shop and the class of work for which it was originally started." Another example is found in the optical industry. When, a quarter of a century ago, the making of optical instruments received its great impetus in this country, it was found necessary to import skilled workmen from Europe for the grinding of the lenses. Those workmen had learned their calling in the metric system in which all their formulas and working data were embodied and they naturally continued the use of the system here. It is, however, a striking fact that, except the lenses, which, numerically, are a small part of optical instruments, such instruments are made to the English system. We thus have two systems in use side by side in the same factories, and is it not clear that if the metric system pos- sessed the advantages claimed for it, those advantages would have led to its adoption for the remaining parts of optical instruments? It is to be noted, moreover, that we are now discussing scientific apparatus which, although made chiefly to the English system, is accepted by scientific men as entirely satisfactory for their purposes. This being the case, by what right do these men claim that others will not accept machinery unless made to the metric system? The investigation of the American Institute of Weights and Measures which has been published under the title The Metric System in Export Trade has dis- closed the fact that the greatest use made of the metric system by any American industry is found in the production of machine tools and it is a striking fact that not- only was this Institute organized within the machine tool industry, but that in that industry is found the greatest number of its members. Is it not remarkable that the very industry which has made the most use of the system is the one which has combined to resist its further extension? Moreover, not only have individuals connected with this industry organized this Institute, but the National Association of Machine Tool Builders, along with other manufacturing organizations, have repeatedly passed resolutions condemning the system. The metric party has endeavored to convey the impression that the intel- lectual people of the United States and Great Britain favor the adoption of the metric system. Against that contention is a pamphlet published by the American Institute of Weights and Measures under the title The Metric System Condemned by Those Who Know, wherein are collected together a large number of condemna- tions of the system by men of whom the following are representative examples : John Quincy Adams, Past President of the United States; Sir George B. Airey, Astronomer Royal of Great Britain; Association of Railway Master Mechanics; C A. Bates, Head of Assessment Division, U. S. Treasury Dept. ; Rear Admiral Bowles, Chief Constructor, U. S. Navy ; Sir Frederick Bramwell, F. R. S. ; four British Parliamentary Committees; Prof. N. F. Dupuis, Dean of Practical Science, Queen's University, Canada; Rear Admiral Earle, Chief of Bureau of Ordnance, U. S. Navy ; Engine Builders' Association of the United States ; James W. Evans, Metropohtan Inspector of Weights and Measures, Sydney, Australia; Furniture Association of America; Willet N. Hayes, Asst. Sec'y. U. S. Department of Agriculture; H. A. Hazen, Chief, U. S. Weather Bureau; Sir John Herschel, the great astronomer; J. E. Hilgard, Asst. U. S. Coast Survey; Dean William Kent, Professor Mechanical Engineering, Syracuse University; B. G. Lamme, Chief Engineer, Westinghouse Electric & Mfg. Co.; J. H. Linnard, Naval Con- structor, U. S. Navy; Hon. David Lloyd-George, President British Board of Trade; Quartermaster General M. C. Meigs, U. S. Navy; Rear Admiral Melville, Chief Engineer, U. S. Navy; National Association of Manufacturers; National WEIGHTS AND MEAStlRES 273 Association of Machine Tool Builders; National Metal Trades Association; Napoleon; C. P. Patterson, Supt. of U. S. Coast Survey; Charles T. Porter, Past President, the American Society of Mechanical Engineers; Providence Associa- tion of Mechanical Engineers; Dr. J. W. Redway, F. R. G. S., Geographer, Meteorological Observer; William Sellers, President William Sellers & Co.; Brown & Sharpe Mfg. Co.; Ellis Spear, Commissioner of Patents; Herbert Spencer; Dr. John E. Sweet, Founder and Past President American Society of Mechanical Engineers; Standards Committee Society of Automotive Engineers; F. W. Taylor, Past President American Society of Mechanical Ejigineers, Founder of Scientific Management; Hon. R. W. Thompson, Secretary of the Navy; H. R. Towne, Past President American Society of Mechanical Engineers; University Convoca- tion State of New York; U. S. War Department, office of Chief of Ordnance; J. A. Williamson, Commissioner U. S. Land OflSce. In addition to these names, I desire to point out the character of those who comprise the Council of the American Institute of Weights and Measures which was organized to oppose the adoption of the metric system. This Council con- tains three Past Presidents of the American Society of Mechanical Ei^neers, a Past President of the American Manufacturers Export Association, a Past Presi- dent of the Mining and Metallurgical Society of America, the President of the National Association of IManufacturers and a Past President of the same organi- zation, a Past President of the Society of Automobile Engineers, a Past Presi- dent of the National Metal Trades Association, a Past President of the Society of Naval Architects and Marine Engineers, the President of the Westinghouse Electric and Manufacturing Co.; President of the Stevens Institute of Technology and the professor of Mechanical Engineering at Yale University. No other American organization can present such a list of names as this. Against it, I wish to contrast the character of the Council of the American Metric Association which has been organized to promote the metric system. That Council contains a wholesale druggist, two wholesale grocers, a professor of phar- macy, a director of a museum, a secretary of a bourse, and an expert in precious stones. Which of these two bodies would you select to direct the industrial policy of this country? I believe I have shown that the judgment of the world condemns the metric system. My Report on The Weights and Measures of Latin America has made cleqr to many what was formerly known to but few — the great similarity of the Spanish and the Ejiglish systems. Read a few of the ratios of the Spanish system: 12 pulgadas make a pie. 3 pies make a vara. 16 onzas make a libra. 2000 libras make a tonelada. These ratios are equally familiar to us all and the onza, the libra and the tonelada differ from the ounce, the pound and the ton by one-half of 1 per cent — a difference so small as toH>e inappreciable for most purposes, a difference so small that in five of the Latin American countries, it is now ignored as it might easily be in all. Do you recognize what I am coming to — Pan Americanism in weights and measures — ^the unification of our weights and measures on the basis of that sys- tem which is no more English than it is Spanish and no more Spanish than it is English because it is neither. It is Roman. I am here to urge Pan Americanism in weights and measures without change of system and with nothing but an adjustment of values to agreement. Pan Americanism did I say? Aye, but much more than that. Great Britain and her far-flung Empire; the United States, which has taught the world how to do without kings; Latin America, the land of the great and glorious future. What more is needed to stir your blood? What more to send it coursing through your veins in the presence of a great opportunity? I am not here to deal in fine words or phrases. I am here to present a simple, sensible, practicable plan for the promotion of the commercial relations of the two Americas and of the British Empire. Let us give up the chase of this will-'o-the- wisp which the nations of the world are always chasing but never catching. Let us consult the experience of the past. Let us recognize that the attempt to adopt the metric system is a failure. Let us work for what is feasible, possible and practicable. 274 SECOND PAN AMERICAN COMMERCIAL CONFERENCE Let MS unify the weights and measures of the two Americas and of the British Empire on the basis of the system which came to us all from the mother of us all — the Roman Empire. What more sane, simple, sensible, obvious, practical, common sense method of promoting the commerce of the two Americas is there than this? What more fruitful thing can the Pan American Union do than promote this object? For what are we here? Is it to promote that threadbare, discredited thing, the metric system, or is it to promote international trade and commerce? PARCEL POST 275 PARCEL POST MAIL AND PARCEL POST SERVICE BETWEEN THE UNITED STATES AND LATIN AMERICA By Otto Praeger, Second Assistant Postmaster General. (Read at the Evening Session of Wednesday, June 4) The Post Office Department has been anxiously awaiting the stabilizing of affairs after the war for many reasons, among others to enable it to carry to completion the program laid down by the Postmaster General a few years ago for thorough reconstruction of the foreign mails system. This program, in the main, called for the bettering of sea transportation of mails to and from foreign countries and world wide extension of our international parcel post. The impetus which the war gave to ship building in this country bids fair to bring that maritime development that will enable this country to keep in touch with the rest of the world by numerous and more direct shipping lines. In a measure upon the shipping program depends the program for the wide extension of the international parcel post. The benefit of frequent direct steamship service is not better illustrated than by the growth of the parcel post between the United States and such of our Latin American neighbors as enjoy rapid and frequent communication between their ports and the United States. Take the case of Mexico, with its direct land communication and the excellent service to its eastern and western ports. Accord- ing to the latest figures, the United States is sending to that country yearly 127,473 parcels weighing in the aggregate 841,482 pounds. This far surpasses the parcel post exports to any other country on this hemisphere. In Central America, Honduras has the best steamship service with us and it leads in parcel post imports from the United States, with 22,899 parcels weighing 152,507 pounds. In South America, for the same reason, Colombia leads in parcels imported from the United States with 107,222 parcels weighing 756,633 pounds. The same ratio holds good with parcels post imported into the United States from Mexico, Honduras and Colombia, thus indicating that the greatest movement of parcel post in both directions bears a distinct relation to the frequency and quick- ness of transportation. One of the noticeable characteristics of the international parcel post with Latin-America is the great disproportion between the number of parcels exported from the United States to Latin-America and those exported from the countries of Central and South America to the United States. While in a measure this holds true in the parcel post export trade between the United States and Europe, the disparity is not as great as between this country and Latin-America. An obvious reason is that the United States is a manufacturing country whose products are easily adaptable to the small shipment units necessary to enter the parcel post. The products of the other American countries run more largely to raw materials which naturally are less suitable for transportation by mail. I realize that there are a great many people who feel that a country need not con- cern itself over the development of imports, but rather over the development of exports; yet in the development of exchange of commodities between two coun- tries better and more harmonious relations will result if the volume of the ex- change is more nearly on an equal basis. In the trade between a country produc- ing largely finished articles, with a country producing largely raw material, there will always be a disparity of volume of parcel post in favor of the country pro- ducing the finished articles, but certainly with intelligent effort this disparity can be reduced, and the increase in the weight limit of articles entering into the international parcel post from 11 to 22 pounds, or from 5 to 10 kilograms, lends itself admirably to this work. I would like to see study and effort directed to this situation and I can assure our friends of the South of the heartiest coopera- tion of the Post Office Department of the United States in this work. Let us take stock for a minute of the international parcel post arrange- ments between the United States and Latin America, and with that information before us let us endeavor to work out a program that will enlarge the dealings on both sides and bring about a still better understanding in the administration of international parcel post. 276 SECOND PAN AMERICAN COMMERCIAL CONFERENCE The United States today has parcel post service with all the countries of Central and South America, including Mexico. To three of these, Chile, Mexico and Salvador, there is provision for the registration of parcels and payment of mdemnity m case of loss. Ta all the other countries except Argentina, Dutch Guiana and Uruguay, there is provision for registration without indemnity, the countries last named not yet having accepted a provision for registration. To ten countries in Central and South America, British Honduras, Guate- mala, Nicaragua, Republic of Honduras, Salvador, Brazil, Colombia, Ecuador, Peru and Panama, the maximum weight limit of parcel post packages is 22 pounds, or 10 kilograms, while to the remaining countries the weight limit is 11 pounds, or 6 kilograms. Negotiations are pending with the latter countries on the proposal of this Department for a like increase in the Weight limit of parcels, and it is hoped that eventually the 22 pound limit will apply to all countries in Central and South America. In our domestic parcel post service the articles prohibited transmission therein are, as a rule, limited to those that will injure the person of the postal employee or destroy, deface, or injure the contents of the mail bags, or are such as to reflect upon the character of citizens, or are regarded as obscene. In the foreign mail service, however, there also are many articles pro- hibited, the restriction imposed being based upon some law or regulation in sup- port of some trade monopoly in the country of destination, thereby obstructing a full development of trade relations. For example, there are countries whose governments have the monopoly of the tobacco trade, or who have given a monopoly of the trade to some corporation. It will be found with respect to the services to those countries that tobacco is prohibited transmission in the parcel post in regular mails. Then again, there are the restrictions with respect to articles made of gold and silver, which are prohibited because the articles may- not contain enough precious metal to conform with the "sterling" or "hallmark," requirements of each particular country, although recently there has been a tendency to permit the bringing in of these articles, with the requirement that they be submitted for appropriate marking in some government bureau. Again, many articles are excluded because the governments have sold concessions to firms engaged in the manufacture of the goods prohibited, and the prohibitions are of course based upon the desire to protect the individuals or corporation having the concession or monoply. An examination of the list of prohibitions in the parcel post for foreign countries shows, so great a variety of articles prohibited that it is not clear upon what hypothesis they are excluded. This Department is conducting an inquiry into the causes of these prohibitions and means for overcoming them. In this connection, the negotiations for a parcel post convention with Cuba are inter- esting, and the one conspicuous example where it may be stated that the United States today is chiefly to blame for the lack of parcel post facilities. The re- fusal of our Congress to so modify our statutes so as to enable Cuba to utilize the service in connection with its principal available industry has prevented the conclusion of a parcel post convention with the Island. The Post Office Depart- ment, jointly with the Treasury Department, has appealed to Congress for an amendment of the law, but without avail. The statute in question prohibits the importation into the United States of cigars and cigarettes in less quantities than 3,000 in a single package, and it is this prohibition that naturally renders Cuba unwilling to enter into such an agreement, as the limitation mentioned would render the service unavailable to Cuban tobacco dealers, even though the weight limit were 22 pounds, the present maximum to certain countries. The modifica- tion of this statute has been opposed by certain cigar makers' unions in the United States, and unless business men and manufacturers, who should be vitally interested, render the necessary assistance in securing the modification of this law, no assurance can be given of the extension in the near future of increased parcel post facilities to Cuba. Hand in hand with the parcel post should go the international money order service, without which parcel post must fail of its fullest benefits and most suc- cessful operations. We have such service at present with only nine countries in Central and South America, but it is hoped that pending negotiations will result in a number of additional conventions in the near future. As an important link in the promotion of the commercial interests of the Pan American countries, I should not fail to draw attention to the proposal of PARCEL POST 277 this Department first submitted in October, 1914, for the application of the do- mestic rate 'of the United States to letters for the various other countries of the Western Hemisphere (where said rate was not already applicable) and the appli- cation of the domestic rates of those countries on letters for the United States. As a result of the proposal, the domestic letter rate has already been extended to British Honduras and British Guiana in Central and South America, and to the Bahamas, Barbados, Dominican Respublic, Trinidad, and the Windward Islands. There is another matter closely identified, it is believed, with the exten- sion and improvement of the postal relations between the countries of North and South America, concerning which I am prepared to speak, however, only in the sense of expectation, and that is the next Pan American Postal Congress to be convened on a date and at a place yet to be selected. The first Pan American Postal Congress was held at Montevideo in 1911, at which Congress, however, the United States was not represented. I am pleased to state that the Postmaster General is anticipating with much interest the delib- erations and results of the forthcoming or second Pan American Postal Congress, and has notified the Director of the Pan American Postal Bureau at Montevideo, Uruguay, of the intention of this Government to send delegates thereto. PAN AMERICAN PARCEL POST By Senor Frutos T. Plaza, Foreign Department, Montgomery Ward & Company (Read at the Evening Session of Wednesday, June 4) I have been requested to address you on the subject of Pan American Parcel Post. This is a question of wide-spread interest and it perhaps concerns more of our common people and commercial classes than any other matter affecting our mutual relations. As a justification for making some observations on this subject, I may say that for the last fifteen years our Company has been shipping merchan- dise through the mails to most of the nations of the western hemisphere ; so that we have gained hy experience a very good understanding of the facilities, obstacles and requirements in the everyday routine of the parcel post. The parcel post is today more than ever the quickest and the most economi- cal medium of obtaining lightweight merchandise from the sources of supply, not only in the United States but in most of the nations of north, central and South America. This method of shipment is employed not only by houses dealing directly with the consumer, but also by those dealing with merchants and importers. The parcel post is especially convenient for the shipment of small sample orders and repair parts. It thus has become an item of intense interest to most concerns indulging in International trade, regardless of what their particular line of busi- ness and methods of selling may be. Thanks to the steady efforts of our Post Office Department, facing at times discouraging obstacles but with a- spirit that is worthy of our commendation, we have today parcel post with every one of the Republics of the Pan American Union. This important factor has placed, I am glad to say, our exporters in the same favorable position as those of the European nations and has brought about what may be called the complete establishment of a Pan American parcel post, ■ opening a new way— heretofore but little known — ^for the interchange of commodi- ties between the Republics of the American continent. Let us consider then some phases of the arrangements whereby packages may be exchanged by mail between the United States and other countries of Pan America and discuss the changes that are necessary for their improvement: (1) Limit of weight; (2) Postage rates; (3) Packing; (4) Necessary documents; (S) Suggestions for its improvement. • (1) At present we have four different limits of weight for a parcel, each depending on the country of destination. To Brazil, Colombia, Peru, Guatemala, Honduras and Nicaragua the limit of weight for a parcel is 22 pounds. To Ecua- dor, Mexico, Panama and El Salvador 20 pounds. To the Dominican Republic, Haiti, Venezuela, Bolivia, Chile, Argentine, Uruguay and Paraguay 11 pounds. To Cuba 4 pounds 6 ounces. Exporters by parcel post should bear in mind that the limits of weight are not the same for all countries so that they may take full advantage of the maximum weight whenever possible. Many people apparently are under the impression that 278 SECOND PAN AMERICAN COMMERCIAL CONFEKENCE the limit of weight is uniformly 11 pounds, and I know of some instances where shipments have been unnecessarily divided or goods needlessly omitted. (2) Postage rates on Pan American parcel post are the same to all the Republics, 12c per pound or fraction thereof, United States currency, registration charges 10c per package. Registration, however, can not be obtained to the Argen- tine Republic, Ecuador and Uruguay. The Gksvernment at this time provides no insurance against damage or pilferage and our Company, to protect itself and the interests of its customers, takes out insurance policies on parcel post shipments in the same manner that freight is insured. (3) The item of packing is of vital importance in the successful operation of parcel post. This is especially true with respect to certain countries of Pan America. To pack the goods properly and economically the shipper must be acquainted not only with the local conditions of transportation but also with the climate. As a general instance, when our Company ships such merchandise as under- wear, shoes or glassware to the seacoast towns of any of the Latin-American Republics, we use only ordinary heavy wrapping paper or light wooden boxes but to the interior towns, especially on the northern and northwestern coast of South America, we use waterproof cloth, wooden boxes lined with wax paper or tin, depending on the nature of the merchandise shipped. By paying particular attention to this important matter of packing, oiir losses have been reduced to the very minimum. In fact, we have made some pretty good records. I remember one case especially well, where we sent an order to one of our customers living in a small town in the eastern part of Bolivia near the Brazilian border, made up of 300 packages of 11 pounds each, and after a trip of thousands of miles over water routes and mountain trails the goods arrived in perfect condition — not a single item missing, not a single item damaged. The packages opened up in perfect condi- tion, just as if they had been shipped from Washington to Philadelphia. (4) Now let us consider what documents are necessary for shipment by parcel post to the Republics of Pan America. With the exception of Cuba, Nicaragua and Chile, there is no need of any consular documents as the duty is collected , according to the weight and valuation shown on a tag that is attached to the parcel post, known as the Custom's declaration, or according to the ordinary commercial invoice. To Chile the consular invoice is necessary when the shipment amounts to $25.00 or more ; to Nicaragua when the amount is $50.00 or more. These documents are obtainable in the same form and manner as apply to ordinary freight shipments. The Republic of Cuba, to enable her importers to receive the benefit of 25 per cent reduction on duty accorded to goods of American manu- facture, requires that shipments of $5KX) or more be covered by a consular invoice, duly certified by a Cuban consul. If this item is overlooked by the shipper, a fine is imposed by the Cuban Custom House authorities on the goods received. When shipments are for less than $5.00, it is optional with the shipper whether a consular invoice is supplied and certification when made is free. (5) It seems that during this distinguished gathering in which there are so many representatives of the Pan American nations, it will be the opportune time to make some suggestions that in our opinion, derived from every day experience, are necessary to make Pan American parcel post more serviceable and competent. We have had abundant evidence recently that such suggestions will receive the fullest consideration of the United States Post Office Department, and there is every reason to believe that the Postal Administrations of the Republics of Cen- tral and South America will lend the maximum cooperation. ' As I have mentioned before, the limit of weight for parcels varies from 4 pounds 6 ounces up to 22 pounds, according to the country of destination. The Pan American parcel post should have, in our opinion, one standard limit of weight — let us say 22 pounds, with the limit of measurements increased in proportion. The increased weight of parcels will bring benefits to both the exporter and the importer. One registration fee will suffice where two is now required. It will very materially decrease the chances of loss that are always incurred when goods have to go in many parcels instead of one or two. There is no doubt that by increasing the weight, parcel post will become more popular and more useful. This has been proven by experience in our own business, in those countries where the limit was raised from 11 pounds to 20 pounds some time ago. Postage is another item that no doubt can be improved. The parcel post treaty between this country and the other Pan American Republics calls for one standard rate of postage of 12c per pound or fraction thereof. England employs a much better system of charges. In her parcel post she uses the group system PARCEL POST 279 of postage— from 1 to 3 pounds, from 3 to 7 pounds and from 7 to 11 pounds— the heavier the package the less the rate of postage. This in itself, you can very easily see, is a great incentive to shippers and buyers to increase the size of their parcels and orders. Consular invoices are demanded by so few of the countries of Pan America that I shall not dwell upon this subject except in a passing way. In our opinion, an improvement to the usefulness of the parcel post can be had by doing away entirely with this requirement. It does not meafl much of a gain to anyone in particular and on the contrary is a source of annoyance to both shippers and buyers. In one or two cases that we know of, the local consuls in the interior cities of this country, like Chicago, have not had the authority to certify consular invoices for parcel post shipments. The invoices must be sent to New York which means a delay of several days and sometimes weeks. At present there is no provision for the sending of parcels C. O. D. This is especially needed to places in Central and South America where the facilities for sending small remittances are inadequate, or in some cases do not exist at all. Besides, Latin-American buyers would much prefer to pay the price of the goods and transportation charges at the time of delivery of the goods rather than to send the money in advance. Many houses like ours would like very much to ac- commodate them but find they can not do so as conditions now exist. To a cer- tain extent we ourselves have been able to overcome this handicap by using the services of local banks. Parcels are shipped to these institutions and we draw on the purchaser for the full amount against delivery of the merchandise. This arrangement of course can not be made general. I doubt if many institutions are using it. It would be a great thing, therefore, for the parcel post if the United States Postal authorities and those of the rest of the Pan American Republics could get together and formulate C. O. D. arrangements. This would add greatly to the full development of this important medium of trade. Now Ladies and Gentlemen, I am going to touch on a subject of extreme importance — a subject which I believe has been at some time or other a nightmare to more than one exporter. This subject is the matter of Custom's duties and Custom House regulations. This conference has been called the Pan American Commercial Conference. I consider myself then as in a regular family reunion, in which we are to discuss our problems with the utmost frankness. Do not con- sider then what I am about to say as mere criticism, but as constructive criticism ; it is the only sort of criticism that will make such conferences, as this of real benefit. Unless the Custom House regulations are made easier in each one of the Pan American Republics, the parcel post to many people will be only an empty name. It will be used by the few and not by the many to whom it is really sup- posed to bring the ■ largest benefit. Complicated Custom House regulations may easily defeat the purpose for which the parcel post was established. Nothing, in my judgment, is gained by making Custom House regulations complicated instead of simple. I am a Latin-American myself and have had discussions on this sub- ject with Government officials, private individuals and importers of many of the Pan American nations and without a single exception they all have agreed with me. There is no question in my mind but that the revenue to each Government could be increased very materially by simplifying the Custom House requirements, as this would encourage many people to sell and many people to buy that at present are rather reluctant because of the obstacles of the present day regulations. Such a ruling as that now prevalent in Colombia — that if articles dutiable under different tariff classifications are mailed in the same parcel they are all dutiable at the rate applicable to the article paying the highest rate — can not be, if I may be allowed to say, but detrimental to the proper development of Pan American trade. This rulliig is an obstacle to the advantage gained by the recent increase of weight for parcels from 11 to 22 pounds, for if a merchant has to ship to Colombia half a dozen items of merchandise of different classifications, rather than run the chance of making his customer pay an excessive amount of duty, he packs the goods in six different packages instead of only one. And this is not the only case. In some countries, duty is collected on the gross weight of the package and an exporter, especially to the interior towns, finds himself very often in the predicament of not knowing just what to do. On the one hand the customer demands that the merchandise must be securely packed so as to insure its safe arrival. On the other hand he also asks that the packing should be as light as possible so the duty will not be out of proportion to the value of the goods ordered. Trying to serve the customer in both cases, the exporter 280 SECOND PAN AMERICAN COMMERCIAL CONFERENCE generally finds that he has failed to do either. This often results in a dissatisfied customer and a skeptical exporter, neither of whom is an asset in international trade. In Venezuela also, according to a decree of September 26, 1918, wrapping such as cloth, straw and paper used for outer covering will be dutiable at the rate of a little more than 3c per pound. The decree also calls for a special Custom House charge of 29c for each parcel imported from the United States when par- cels coming from other countries are only charged Sc. Failure to specify the goods according to Custom tariff will subject the importer to a fine of IS per cent of the Custom duty. In others, such as Costa Rica and the Argentine Republic, we have found that the delivery charge surtax placed on the importation of merchandise by parcel post is so out of proportion, especially on small shipments, to the total value that in most cases it makes the transaction anything but economical to the purchaser. Besides this question of duty there is another important drawback against the extension of the parcel post in Pan America. In such countries as Brazil and the Argentine Republic parcel post packages can only be sent to a limited num- ber of post offices, and if the purchaser happens to live outside of the favored cities, which are few in number, he has to make use of the services of an agent for the forwarding of his goods. Certainly this is not an encouraging feature in popularizing the use of the parcel post. To show that I am perfectly fair in the matter of mentioning names, I will now call your attention to the injustice that has been done to the Republic of Cuba in the matter of increased weights for the interchange of parcels. The situation is a very peculiar one. The Cubans want a regular parcel post to the United States and I know we Americans want it also. Our Post Office Depart- ment has done all that it has been possible to do to put the matter through. But there is a regulation in the United States Treasury Department to the effect that the smallest quantity of cigars that may be imported into this country is 3,000. Now 3,000 cigars weigh over 30 pounds and the Cubans, with every reason, claim that since this regulation stops them from shipping to this country by parcel post one of the leading products of the island, they will refuse to enter into any ar- rangements for a parcel post treaty. It seems that it is up to the United States Congress to repeal this law. It has been presented to the Ways and Means Com- mittee where, I believe, it now rests although repeated efforts have been made to have it favorably acted upon. There is not the slightest question that something should be done and done quickly in this matter; it is inconceivable that there is no parcel post between the United States and Cuba except a make-shift arrange- ment for carrying parcels weighing up to 4 pounds 6 ounces, while European countries have arrangements whereby 11 pounds may be sent in one parcel — ^putting us therefore at a great disadvantage in the matter of trade by mail. This is one of the cases in which a favorable decision by this Government will be of benefit both to United States and Cuban citizens. Now, Gentlemen, if we are to have a real, serviceable, economical medium of shipping merchandise by mail, we should all get together to rid ourselves of these annoying, petty obstacles that lend themselves to no special purpose what- soever. If we are to have a Pan American parcel post, let us have a real one and not a poor imitation. In conclusion, kindly permit me to say that in presenting these views our house does it only in a spirit of real co-operation towards a better understanding of Pan American commercial relations. We are, in the export field, wholesalers as well as retailers. Only a small proportion of our trade goes by parcel post. ' The bulk of it is forwarded by freight. Therefore is not more vital to us than it is to other shippers. Before the parcel post came into existence in Pan America, the only persons who had a chance to come in contact with each other in different countries, outside of pleasure seekers, and diplomatic and consular agents, were the big importers and exporters. The parcel post, however, has changed this condition and today it is not only the big importers that get acquainted through commercial transactions, but the little people, the masses you might say. Now the wife of a shoemaker in Peru is able to send her order to New York or Chicago or to, say, other cities in Pan America for goods that she is not able to obtain in her locality. Even boys and girls can buy their toys and sporting goods in the far-distant! commercial centers. These commercial transactions and exchanges of products between people of the different countries are bringing about mutual friendship and understanding. TRADE MARKS AND COPYRIGHTS 281 TRADE MARKS AND COPYRIGHTS PAN AMERICAN TRADE MARK PROTECTION By Dr. Mamo Diaz Yrizats, Director of the International Trade-Mark Registration Bureau at Havana, Cuba. (Read at the Evening Session of Wednesday, June 4) The International Trade Mark Registration Bureau of the American Repub- lics established at Havana in pursuance of the Convention adopted at the Fourth Pan American Conference held in Buenos Aires in 1910, will unquestionably serve as one of the chief measures to bring the American Republics into closer relation- ship with each other. That Bureau will have as its main object the greatest kind of protection possible for all products to which a trade mark is given. It must be a matter of general interest to all merchants and manufacturers to ^ee the progress made in securing protection of their products and their manufactured goods throughout the American nations. Up to this time, thanks to the efforts of the Cuban Government and the personal interest of President Menocal on the one hand, and to the intelligent and helpful cooperation of the Senate and- House of Representatives of this Republic, it has been possible to establish the office entrusted to the supervision of the Cuban Republic with a view to carry out the provisions of the Convention adopted at Buenos Aires. The steps to be taken in • getting the mechanism of registration under way have advancfed considerably so far as concerns the United States, the Government of which has already approved the regulations of the Bureau and made an appropriation of the quota due from the United States towards the support of the Bureau. The Republic of Honduras is likewise officially known at Havana to have approved the regulations and appro- priated its quota. Similar action is expected in other countries, of which un- official word has been given indirectly to the Bureau, as in Nicaragua and Panama. The practical aim is to enable merchants and manufacturers to deposit their trade marks in the countries which constitute the Pan-American Union, and in a simple and economical way, to secure extension through the International Bureau at Havana of the protection given at home. With the application for such exten- sion of trade mark protection, will go a money order of $50.00 and an electrotype of the design of the mark. The Patent Office at Washington for example, will transmit the application to the International Bureau at Havana together with a description of the mark. The International Bureau at Havana will enter the application immediately upon receiving it from Washington in the official regis- tration book kept for the purpose. Official copy with all relevant details will be sent to each of the nations of the Northern Group for the purpose of study by their trade mark officials. If these officials, after examining the data referring to the mark, find no legal reason based on their national legislation which will prevent the extension of trade mark protection to the mark in question, they will confer upon it full protection within their respective jurisdictions. The American nations according to the Convention are divided into two groups, one comprising the eleven republics of North and Central America and the West Indies, the other the ten Republics of the continent of South America. The Office of the Northern group is now established at Havana, that of the Southern group will be at Rio de Janeiro. In order that a given mark may be protected in the Southern Group from the moment that the Bureau at Rio de Janeiro shall have been organized, the Bureau at Havana will begin automatically to furnish the authorities at Rio de Janeiro with all details relating to each of the marks submitted to Havana. Thus from the very outset of its operation, the Rio de Janeiro Bureau will have a complete record of all the trade marks sub- mitted by the countries of the Northern Group to the Havana Bureau for inter- national trade mark protection. The economy of this process will readily impress those who stop to think that the entire operation will take place at an expense to the applicant of $50.00 plus the cost of his money order, his electrotypes and some other trifling incidental expenses. At the present time, the deposit of a foreign trade mark merely for the purpose of registration in one American coun- try alone, costs the applicant much more than it will now cost him for protection in all of them derived through this office. Another one of the several advan- 282 " SECOND PAN AMEEICAN COMMERCIAL CONFERENCE tages of this arrangement is to be found in the six months' priority given to the applicant over any applicant for a similar mark submitted in any one of the Ameri- can Republics which have ratified the Convention. For example : Let us suppose that a merchant has in the United States a registered mark X for a certain brand of shoes and wishes to secure that mark in Cuba, and that a Cuban merchant may have applied on M'ay 1st for that mark X as a trade mark for shoes. If. the United States exporter uses the usual process by means of certification of the mark through an agent in Cuba for the purpose of depositing it, it may well happen that the agent will for one reason or another allow time to pass by and his submission of the mark for registration may take place a day or two after the mark X has already been applied for by the Cuban merchant. In such a case the United States manufacturer would be denied protection. On the contrary, if his claim is presented through the International Bureau it will be a matter of no im- portance whether or not a-^uban merchant may have made application for that mark one or three months prior, inasmuch as under the Convention this mark registered in the United States will enjoy six months' piority over any other identical mark applied for. In broad outline, these are some of the advantages to be derived from the establishment of the International Trade Mark Registration Bureau. It is a matter of great urgency that not only this Bureau should soon begin to function in a normal way, distributing its bulletin and being in direct and normal contact with the trade mark authorities of the various countries, but that also the other Bureau at Rio de Janeiro should begin operation. Seven ratifications were required in the Southern Group before the Convention would become effective. At this time five of the countries in that Group have ratified the Convention and five others have still to take that action. It is the earnest hope of all interested in this practical and important subject, that at least two of the Governments concerned will see their way clear to take this action without delay; and that the others will not long delay in making the same favorable decision. If two more ratifications in South America can be secured within a short time, it will be possible for the Brazilian Government to set up in actual operation the Bureau at Rio which will be the counterpart and complement of the one over which I have the honor to preside. The two Bureaus will work as one through a weekly exchange of all records entered officially, and protection will be evenly secured through both of them as if there existed but one office. Nothing will so greatly promote the closer relations, commercial and financial, of our various peoples in this hemisphere as the assurance of the tranquil possession of all valuable rights acquired through the improvement of industrial and commercial values. The degree of protection which an organized community sees fit to give to trade marks will, in a way, determine the standard of respect for the acquired rights of commerce and in- dustry throughout the world; and the willingness of Governments to cooperate frankly and cordially in giving effect to an instrument for international protec- tion of such industrial and commercial property as the trade mark, will be the index of their broad international vision and sound commercial policy. And now, before concluding, may I be permitted to refer to the kind remarks of the Vice-President, the Hon. Thomas R. Marshall, in his inaugural address at the opening of this Conference last Monday, when he said that we of the Latin race should see in the people of the United States real brothers. The ideal of brother- hood herein depicted was also developed in other language in the notable address of the Speaker of the House of Representatives, the Honorable F. H. Gillett, the same day. The sentiments, gentlemen, expressed by Mr. Marshall and Mr. Gillett were not mere words of courtesy, but they are expressive of a fundamental reality, namely, the genuine feeling of this great nation for us of the Latin family. I would not consider myself as complying sufficiently with my duty did I not here pay due tribute to this spirit of cordial friendship to which in fact, I owe such measure of success as I have had in the administration of the International Registration Bureau at Havana. The full and disinterested assistance given to my by the Honorable L. S. Rowe and by Dr. C. E. McGuire, Secretary and Assistant Secretary of the International High Commission, has been a factori of importance in my work. These officials of that organization, which is well-known to the Latin peoples for its effective realization of the plans for technical uniformity of the American Republics, and which is due to the powerful initiative of one of the men of great- TRADE MARKS AND COPYRIGHTS 283 est vision in the hemisphere, Secretary McAdoo, have done their utmost to make good the sentiments contained in the words of Vice-President Marshall and the Speaker of the House of Representatives. They both, Dr. Rowe and Dr. McGuire, have, in fact, dealt with me more than as a friend, even as a brother. Likewise, the sage advice which I have received from the chief authority of the United States on trade marks, the Honorable J. T. Newton, Commissioner of Patents, has been of great service in the process of organizing the office at Havana, and I ought frankly to say that Mr. Newton has even gone beyond what we may venture to call the "Marshall-Gillett" doctrine, since he has advised me rather as a father than as a brother. What I have intimated, gentlemen, is obvious and clear. No one of you, on entering this building thinks he is entering merely the "Pan-American Building" as it is called, but he feels as I feel, that he enters his own house. And when we clasp the hand of the Director-General, the Honorable John Barrett, no one of you, any more than I myself, will think he is merely greeting the great organizer of this significant gathering, but due to the kind welcome which Mr. Barrett has for us, we all believe that we are dealing with an old family friend. In the name of the Government and people of Cuba I beg to extend to those entrusted with the organization of this Conference, the expression of our most sincere and enthusiastic congratulations upon its complete success. Protecting good will abroad By SeiJor Enrique Gil, of Aldao, Campos & Gil, Counselors at Law, New York City and Buenos Aires. What is the value of the "good will" of a business in the United States ? Many of our leading corporations have answered this question in round figures, which are listed below. Vitagraph Co., $5,990,372; United Drug Co., $9,974,213; U. S. Worsted Co., $4,348,881; American Piano Co., $3,790,723; American Cotton Oil Co., $11,635,886; American Graphophone Co., $1,500,000; American Pneumatic Service Co., $7,943,- 597 ; Imperial Tobacco Co., $26,816,801 ; Liggett & Myers Tobacco Co., $39,073,021 ; American Tobacco Co;, $54,099,430; Butterick Co., $9,186,065; Cluett, Peabody & Co., $18,000,000; Dennison Mfg. Co., $1,000,000; Studebaker Co., $19,807,277; Un- derwood Typewriter Co., $7,995,720; Willys-Overland Co., $14,059,932; F. W. Woolworth Co., $50,000,000; Regal Shoe Co., $2,500,000; Chandler Motor Car Co., $5,000,000; Westinghouse Air Brake Co., 42,790,515; Electric Storage Battery Co., $11,000,000; Hart, Schaffner & Marx, $15,000,000 Fisk Rubber Co., $8,000,000; Maxwell Motor Co., $26,500,000; U. S. Radiator Corp., $4,000,000. The above figures, taken from Moody's Analysis of Public Utilities and In- dustrials, for 1916, at the beginning of our export trade expansion, show clearly how valuable some of our leading corporations then regarded their good- will, trademarks and similar assets. To what extent is good-will increased by foreign trade expansion, and how can its owner insure that'this good-will abroad shill be retained? iVhat Is Good-will Abroad? — It is an easy matter for a manufacturing firm putting out a high-grade article under a well-advertised trademark in the United States, to build up and retain a valuable good-will in this country, but this is not the case in selling in foreign markets to people speaking different languages and particularly when all dealings with the foreign public take place through export agencies trying to create a good-will for themselves, rather than for the manu- facturers of the goods they are selling. Building Good'will in the Export Trade. — It is clear that it is considerably more difficult to build up good-will in the export trade than in the domestic trade. This is not merely because export advertising is done at a long range, and in many cases the American concern does not know just the kind of advertising matter which will best appeal to the foreign public. More often than not, the foreign public never gets to know the goods of a particular American manufacturer by his trademark, because the American trademark is not distinctive to the foreigner. One of the first principles in building up good-will abroad is to choose a trademark 284 SECOND PAN AMERICAN COMMERCIAL CONFERENCE which will be distinctive in the various foreign countries. Naturally, where the trademark is extremely well-known, and considerable money has been spent upon advertising it, it would be foolish to abandon it merely because it might be possible to choose a more distinctive trademark. But where the American concern is going into the export trade for the first time, it is well to consider the proposition of choosing a special mark for export. Coined words, which have a special signifi- cance in the United States, such as "Uneeda," "Auto-Strop" and "Hole- Proof," while having similar value in English-speaking countries, lose this "catchy" quality in the Spanish-American and other foreign language countries. Marks of this character are not so universally adapted to build up good-will in foreign trade as picture marks. Just as one word in the Chinese language looks to us very much like another, so word marks in the English language have very little distinctive value in the Far East, or in any foreign country where dealings are had with an illiterate public. Many American concerns dealing with such a public use a so-called "chop" mark, that is, a picture of an animal or an object of uni- versal interest, either alone or associated with their regular mark, and thus insure the growth of good-will in such foreign markets. Concerns about to enter the export trade should consult someone familiar with the best type of trademark for the foreign market before arriving at a hasty conclusion, because once a trademark has been chosen, it is an extremely difficult matter to change that trademark at a later date. Retaining Good-will Abroad. — ^Just as it is more difficult to build up good- will in the export trade, so it is more difficult to retain that good-will. The pit- falls are entirely different from those met in the domestic trade. Whereas, in the United States, the piracy or stealing oTn trademark is prac- tically unheard of, this practice exists nearly all over the world outside the United States, and the American exporter who wishes to retain his good-will in the foreign countries must take full cognizance of this situation, and act accordingly. To those exporters who are not fully familiar with the reason why piracy is so prevalent abroad, it may be stated that the laws of many of these foreign countries are based upon a conception of trademarks as property which is entirely different to our own. In the United States the exclusive right of the owner to the trademark is acquired by the use of the trademark by the owner. In the South American countries and most of the European countries, ownership in the trademark is acquired by going to the Government Trademarks Office, filing an application, paying a Government fee, and receiving a certificate of registration. This certificate of registration is granted irrespective of whether the mark has been used by the person claiming to be the owner, and irrespective of whether it has been used by any other person, or whether the person attempting to register it has stolen it from, another. An appreciation of this situation shows very clearly that under the laws of these coun- tries, the American who does not register his trademark is not the legal owner thereof, no matter how much he has used' it, and the person who does register Ifie trademark thereby becomes the legal owner of the trademark. The unauthorized appropriation of trademarks is not by any means limited to the Latin American countries. The laws of practically every country in the world, outside the United States, permit the registration of marks which have not actually been used by the owner. In Great Britain and her Colonies, for instance, a regis- terable trademark is not only a mark which has been used in the business of the owner, but also a mark which is intended to be used in the business of the owner, and it is quite possible under the British and Colonial laws, to register trademarks which are merely intended to be used, but in actual practice have not been used. U. S. Government Warns Exporters. — Only recently the United States De- partment of Commerce issued a report to the effect that the registration of trade- marks in the various foreign countries may be regarded as one of the fundamental steps of preparation for after-war trade; that foreign trademark registration is perhaps of even greater importance now than under normal conditions, in view of the reported activity of enemy agents and others in appropriating American trade- marks; and that any article worth advertising abroad is worth protecting by means of trademark registration. In particular, the Department of Commerce has drawn the attention of exporters to the fact that the countries of Latin America have furnished a particularly profitable field for the registration of trademarks for speculative purposes, and that nearly every issue of the official bulletins of some Latin American countries contain applications for trademark registration that are evidently fraudulent, or at least unauthorized. Our Government has stated that TRADE MARKS AND COPYRIGHTS 285 names of automobiles, motor trucks, pharmaceutical preparations, and other articles, the sale of which depends largely upon advertising and good-will, have been par- ticularly subject to misappropriation, and that recently, a single firm applied for the unauthorized registration of the trademarks of six amongst the best-known Amer- ican cars. Ethical Reasons for Stealing Trademarks. — So prevalent has appropriation of trademarks become in the Argentine Republic, that attorneys who make a practice of representing domestic concerns in the Argentine, such as firms of importers, have actually evolved an ethical reason for appropriating the trademarks of Amer- ican manufacturers. This ethical reason is that if the Argentine concern represent- ing the American company does not steal the trademark, it will be stolen by some one else. These ethics are preposterous from the standpoint of the American manu- facturer, and yet from the standpoint of the Argentine importer, it is better for the American to have his mark stolen by a friend, than by some less disinterested party. Experience has shown that when these "friends" have been requested to assign the Argentine marks to the American concern, excuses are made which lead us to believe that, after all, our Argentine friends wished to have a hold on us which would forever preclude us from dealing with any other concern in the Ar- gentine in goods bearing the trademark in question. Because of these circumstances it is necessary to lay down the rule that no dealings should be had with parties in the Latin American countries until the trademark application has actually been filed in the Trademarks OflSce. Any exporter who fails to take this precaution cannot complain that he has not been adequately warned. Some of the more conserva- tive of our manufacturers, who have thought where ignorance is bliss 'tis folly to be wise, have awakened to the realization that their ignorance and blissfulness have cost them their trademark rights in countries in which they might otherwise be doing a successful business today. Trademarks Represent Export Trade Insurance. — Many manufacturers are alive to the simple fact that foreign trademarks represent the insurance, policy on the_ good-will of their export business. The fees which are paid for trademark registrations represent the premiums which are paid on the insurance policy. By registering trademarks in the various foreign countries, the exporter thereby in- sures the good-will of his export business, and the money and effort which he has spent in advertising his goods and developing his_ trade in those countries. An estimate of the costs in annual payments of insuring the good-will in an export business, no matter whether it be great or small, shows that the average cost per annum of insurance by trademark registrations in the leading foreign countries amounts to less than $6.00 per country per annum. This cost is extremely low as compared with the cost of insurance of other forms of property which are not nearly so liable to be stolen or appropriated as foreign trademark property. I have never yet seen a case where a lawsuit conducted in one of these countries, in order to recover a mark that has been stolen, has cost less than the cost of registration in most of the countries taken together ; and in many instances I have seen cases where money ill-advisedly spent on litigation has been merely thrown away, since it was entirely impossible under the laws of the countries in question to recover the trademark which had been appropriated. Conclusion. — If this country is to hold its place in the export field, it must be by understanding the conditions as we find them abroad, and succeeding in spite of them. The exporter, who, knowing of the conditions as to trademarks abroad, decides that a big fuss is being made about nothing, and that he will take his chances, is building his foreign business on a foundation of quicksand. There is only one rule as to trademarks in the foreign markets, and that is no protection without registration. COPYRIGHT RELATIONS BETWEEN THE UNITED STATES AND THE LATIN AMERICAN COUNTRIES By Richard C. De Wolf^ of the Washington, D. C. Bar. (Read at the Evening Session of Wednesday, June 4.) The privileges of the copyright law of the United States are now open to citizens of fourteen of the Latin American States: Bolivia, Brazil, Chile, Costa Rica, Cuba, the Dominican Republic, Ecuador, Guatemala, Honduras, Mexico, Nicaragua, Panama, Paraguay, and Salvador. Authors, artists, composers of 286 SECOND PAN AMERICAN COMMERCIAL CONFERENCE music, or makers of photographs who are citizens of any of the countries named can, therefore, secure the sole and exclusive right of reproduction of their works in the United States for a period of fifty-six years (a first term of twenty-eight years, with right of renewal for a second twenty-eight years). Of the remaining Latin-American States, all, or nearly all, have signed the Pan American Copy- right Convention of Buenos Aires and as soon as they shall have ratified this Convention their citizens will likewise be entitled to copyright in the United States. Up to the present time, few citizens of the countries named have taken advantage of their privileges. This is to be regretted. The formalities required in order to secure copyright in the United States are quite simple and the expense is slight. The first and most important thing is the printing of a notice on the book, or picture, or musical composition, or photograph, stating that it is copy- right property and giving the name of the owner and the year of publication. A copy of the book, or other work, should then be sent to the Copyright Office, Library of Congress, Washington, D. C, in order to secure registration of the right and a certificate which can be presented in court, if necessary, as evidence. It is very important to remember that these things must be done at the time when the work is published, otherwise it will be too late to secure the pro- tection. The law requires the notice claiming copyright to be printed on the work at the time it is published, and If this is not done, the lost protection cannot be revived afterwards. Likewise, the copy of the work sent to the Library of Congress for registration must be sent promptly after publication. In some years of experience in the Copyright Office, the writer has very often seen cases where the author, or publisher, to use the expressive Spanish proverb, has come running with water after the house was burned down. Perhaps when his work was published he did not think there would be any sale for it in the United States. Then, two, or three, or five years later, there comes a sudden demand for the work. Some critic praises the book, some virtuoso plays the musical composition in the concert hall, and the author, or composer, sees to his chagrin, that large sums of money are being made from his work of which he receives not one penny. He could just as well have got protection for his work and reaped a profit from sale in the United States, had he used a little foresight and taken a little trouble at the time of publication. At the Second Pan American Conference many speakers have expressed a wish for a better more sympathetic understanding, between the United States and Latin American countries. The best way to understand a country is to study its art and literature and music. We cannot all meet in person and speak to one another, but we can exchange our books and pictures and music and through this means millions of people can come to understand each other. Therefore I would say to Latin Americans : Send us your literary works, your music, your magazines, your pictures, and secure your just property rights for them under the copyright law. You may not think there is any large market for your works now, but before many years — ^perhaps in a short time — ^the rapidly increasing interest in everthing pertaining to Latin America which we in the United States are coming to feel will make your copyright very valuable. TRADE REGULATIONS 287 TRADE REGULATIONS CONSULAR REGULATIONS AND OTHER TRADE ANNOYANCES By ViNca:NTE Gonzales, Trade Adviser, Mercantile Bank of the Americas, New York (Read at the Evening Session of Wednesday, June 4) Without any desire to criticize, but only for the purpose of exposing facts in order to secure relief, the following remarks are offered regarding what can be called a nuisance in our trade with Latin America. Consular and other Latin American Customs regulations, because of their interminable variety and continuous changes as well as because of their diversity, have become a source of permanent annoyance. Consular invoices were primarily intended to assist Governments in compiling statistics and checking imports for revenue reasons. But, gradually they have been diverted from their original purpose and have become an integral part of export documientation to an extent that evidence of shipment, and therefore theoretical possession of goods, is not complete without them. Commerce can afford to add one or more papers to complete, or perfect, records of any and all transactions if only the same procedure were to be followed for shipments to all countries. This is not the case. Every other country has different regulations, which are changed, amplified or extended almost continually, imposing eventually further restrictions and formalities until the whole matter is unbearable. No two of the twenty countries have the same regulations regarding bills of lading, consular invoices, marks, values, penalties, and others. No two of them have the same charges, office hours, and other requirements. They are all different in essence or in form. As early as 1890, that is, 29 years ago, when the First Pan American Con- gress met in Washington, it was resolved to recommend to all the Latin American countries, forming the now Pan American Union, the study of a plan to make all these regulations uniform. Since then, and during these 29 years, there has not been a meeting of busi- ness men gathered for the purpose of discussing Latin American trade that has not again and again recommended the same: the uniformity of Customs and Consular trade regulations. It seems that this is the most unfortunate question. No one can explain why nothing is done to relieve the situation after so much has been said, written, recom- mended and resolved. After 30 years we find conditions worse than ever. An exporter today has to carry an encyclopedia in his head in order to know what he can and what he can not do. He has to know the different names given to the same article in the different. countries; the tariff peculiarities of each with their more or less complicated provisions regarding the several forms of estimating the gross, net, legal and actual weights. He has to know how each article is classi-. fied in every tariff, and when and why he has to declare measure, weight, size, form of packages, containers, etc., how he has to mark the inside and outside packages, how he has to number them, what besides marks and numbers has to be mentioned on the package, and when can he use a brush and /or stencil and when the latter only. Otherwise he may make himself liable for damages due to un- willing mistaken declarations. Description of goods in consular invoices is not the worst of the troubles. Often the task of fulfilling instructions and yet expressing the truth is just as bad. The "saving" of duties and other charges is looked upon very lightly by some people while we may consider it flatly as an attempt to defraud the Government of its legitimate taxes. Along these lines the conscience of some people is won- derfully elastic, and they do not think they are doing wrong until found out and they have to suffer for it. A customer instructing the shipper to declare "silk shirts" as "shirts" only may have the intent of "passing" them as "cotton." The shipper may suspect this intention and refuse to assist and will declare the goods as they are. He may have to face a loss for not having followed instructions. Furthermore, he may lose a customer, who still thinks and feels he is honest. But he does not care to com- promise with his own conscience. 288 SECOND PAN AMERICAN COMMERCIAL CONFERENCE Some countries confiscate goods when undervalued in the consular invoice; others establish their right to "take them for declared value"; others will impose heavy fines, while others, more lenient, may only disregard the declared value. Some countries demand original manufacturer's invoice to verify the value, an unnecessary requirement, as duties are almost everywhere specific on the weight, measurement or contents. Some countries demand that separate invoices be made for each different mark, while others permit the consolidation >of several marks into one invoice. Others go as far as fixing the minimum size of marks on packages. In other countries the absence of Consular invoice makes goods liaBle to double duty. However, all these troubles would be greatly minimized if all were to be cut on the same pattern. But to have to follow twenty different "sets" of regulations changeable with Or without notice and to keep track of all these changes at the expense of a good name or good money is beyond endurance. The peculiar requirements of each country exacted from their Consular offi- cers force them to issue regulations of their own concerning the time when shipping papers including consular invoices m'ust be in their hands and when and how they are to be delivered. In some cases regular gymnastics have to be resorted to in order to mail all papers by the same vessel carrying the goods, avoiding imposition of fines to importers should they not arrive in time. Then comes the matter of actual papers to be presented for certification. Some countries demand bill of lading and Consular invoice, some the first only, some the second. Some, in addition, require certificates of origin, of health and others. Some require oath before a public notary, some before the Consul, some are satisfied' with signature only. Some countries demand as little as two copies of the invoice, some as much as seven. Blank forms are sold at different prices, one country charging as little as six cents for a set of six copies and another as much as seventy-five cents for four copies.. Consular charges proper are also different. Only one country (Costa Rica) makes no charge for certification of other consular invoices or bills of lading. Two (Argentina and Uruguay) require no consular invoice and charge a small fee for certifying bills of lading. One (Paraguay) charges a small fee for certifying bills of lading, and an- other fee, also small, for certifying the Comimercial Invoice. Two (Nicaragua and the Dominican Republic) collect consular charges at port of entry, the first collecting a small fee for certifying bills of lading. Two (Brazil and Haiti) charge a small fee for certifying Consular invoices and another small fee for certifying bills of lading. Five (Venezuela, Cuba, Honduras, Panama and Salvador) charge less than 1 per cent for Certification of Consular Invoices. The first named not charging for certifying bills of lading, the other four charge fee of $1. One (Chile) charges 75 cents for certifying each copy of the bill of lading ' and a sliding fee of less than 1 per cent for certification of Consular Invoices. Three countries charge 2 per cent, for certifying Consular Invoices (Guate- mala, Peru and Bolivia). Guatemala only charging a fee of $1 for certification of bills of lading. Three (Colombia, Mexico and Ecuador) charge 3 per cent for Certification of Consular Invoices and nothing for bills of lading. The charge of a small fee for certification of Consular Invoices is perfectly reasonable. The United States also makes that charge. But when a regular per- centage is charged, as high as 3 per cent— it is nothing less than an import duty col- lectible at the port of shipment, and which, as a rule, adds to the amount that has to be advanced by shippers usually on credit. Buyers pay all these charges in the end, whether as a specific expense charged on the invoice or as an increase in the price, but that does not destroy the fact that the American exporter is advancing other than tlie cost of goods and natural expenses. However, this would not matter, if only such charges were all alike. But, as mentioned above, there are nine different forms of collecting them. A few other countries require declaration of shippers regarding the value of goods, as do Canada, Australia and New Zealand. But such declaration calls for no formalities and no fees and does not call for an advanced knowledge of Customs TRADE REGULATIONS 289 tariffs or regulations on the part of the shipper. It is intended not only as an evi- dence of dutiable value, but also as a warning against the dumping of goods at lower than market prices which those countries wish to avoid. We cannot very well ask for the abolition of all these formalities, as we also have them. All goods shipped to the United States must bring a consular invoice signed before the American Consular officer at place of shipment, and we, also, have some inconceivable red tape in the matter of regulations on imports. We can, however, ask for certain uniformity in such regulations, as they all tend to the same purpose. Consular officials are supposed to know thoroughly these Customs regulations, and should advise shippers, warning them of all possible liabilities falling on them because of unwilling violation of such regulati'ons, wrong declarations, etc- But, as a rule, consular documents are made after the goods are practically on board, and certification is requested by all shippers at the same time, giving the Consul and his staif barely time for affixing seals and signatures. It is enough to see a Consulate on mail days to verify this statement. To fill the need of Gove'rnments for some basis of checking imports and assisting in the compilation of statistics, it should be sufficient for the shipper to sign a Consular Invoice, sending a copy certified by the Consul to the consignee together with the bill of lading, the carriers furnishing the Consul with a copy of the bill of lading. Whatever these documents say, the Consul cannot verify the truth nor what is written on them serves as basis for the collection of import duties at destination in Latin America. All goods are examined at the time of their clearing and dis- crepancies can be penalized at the expense of whoever commits the fault, except- ing, of course, honest mistakes which can be proved. Description of goods should be made as simple as possible. The only object in this description on the Consul.-.r Invoice is to assist in compiling statistics, as duty is not collected on what the invoice says, but on what the goods are. There are goods sold by the yard — according to width, but not according to weight as a whole or per square yard. Some countries charge import duty according to the weight per square yard or meter, a detail the shipper has no interest in, and yet he has to declare it in the invoice, becoming liable for any mistakes. Statistics do not show the quantity of each specific quality imported. As a rule, they are classified as "Woolen Goods" or "Mixed Goods," etc. In some other countries duty is collected according to the proportion of mixture (in textiles), some as to the surface, some as to the value, some as to the weight, some as to the volume. Sometimes it is physically impossible for shippers to ascertain exactly the pro- portion as required and a mistaken declaration might make them liable to a loss. It should be enough to describe the goods as, i. e. all wool, mixed wool and cotton, mixed wool and silk, etc. Some countries demand that the shipper mention the class under which the goods are classified at place of destination, sometimes even giving the paragraph number. Any mistakes, of course, make the shipper liable for excess of duty, if any. This imposes on the shipper the necessity of becoming an expert customs appraiser in that country for the sake of just a few shipments every year; this he cannot afford to be. There is one other matter that may be mentioned at this time- It is the question of inviolability of the right of holders of bills of lading. It is an open secret that in some countries prospective owners can obtain de- livery or release at Custom Offices without presenting original bills of lading — only document that conveys right of possession. It is said that the mere mention of a man's name as notifyee on an order .bill of lading or the fact that the consular invoice mentions his name as "for whose account the goods have been shipped" will permit him to secure copy of consular invoice and bill of lading, issued by a Cus- toms official and that with these copies he is allowed to make entry and take actual delivery on payment of duties, if any. While this may not be a- regular practice in all the twenty countries and honest merchants would never resort to a crooked way of obtaining possession of goods, it has happened unfortunately often enough to justify a demand for pro- tection in the future. Custom offices are mere trustees for both the shipper and the consignee, whoever he may be — a direct one as mentioned in the bill of lading or the legitimate holder of an "order" bill of lading. Although all bills of lading state the obligation of the carriers to deliver goods shipped to a consignee (specific or to be laiown 290 Second fan American commercial coNfERENcE later) at destination, he does not make nor can he make such delivery. The goods are all delivered in bulk under rough inventory on arrival to the Government who keeps them in trust until legitimate right of possession be shown and duties, if any, paid. Such goods are held in trust only, although the State holds a natural lien on them for duties and charges. • The State should then, in fulfilling its trust, deliver only to whoever shows irrefutable right of possession — whoever gives evidence not only according to the laws of the country but also according to the laws of the country where the goods were shipped. * All countries recognize the holder of an order bill of lading, or the consignee of a direct one, as the legitimate possessor of the goods represented, and the State on actually seizing the goods on arrfval makes itself Trustee of the possession only. It never acquires nor can it transfer the ownership of such goods. It cannot make delivery to other than the rightful possessor or his legal transferee. The Consular invoice does not and cannot transfer the right of ownership nor the right of pos- session. It is only a document issued for the convenience and protection of the rights of the State. But the protection of its rights can never go as far as making delivery of such goods to other than the legitimate possessor, be he the owner or not. The State has no right to interfere in the transfer of ownership, which is a right exercised only by legitimate owners. It may confiscate goods for violation of its laws, it may destroy them for the same reason, but it has no right to deliver to anyone goods of which he has no right of possession. The only evidence of right of possession of goods transported from one place to the other is the holding of the bill of lading duly endorsed or duly directed. Furthermore, the State, as trustee, should protect the rightful possessor and prevent anyone else from taking possession. If sufficient protective provisions are not mentioned in the Customs Laws and .Regulations, they should be decreed so as to satisfy the confidence of all shippers. They should be so precise that everyone should "know that goods will not be delivered except in compliance with the . instructions of the rightful pos- sessor — the holder of an endorsed order bill of lading or the consignee in the direct one. In this regard it might be convenient to pass legislation (or Executive regu- lation as the case may be according to the laws of each country) making it un- mistakably clear that consular invoices do not in any way bestow upon any person rights of ownership or possession and that they are merely auxiliary documents intended to assist the Government in compiling statistics and verifying details of goods imported for the purpose of revenue only. There are only four countries in the whole world who do not recognize they "order" bill of lading, the four in Latin America : Colombia, Venezuela, ' Panama and the Dominican Republic. The advantages of the order bill of lading are too well known to need any further comments, and it is hard to understand why those four countries, usually progressive, are still adhering to the antiquated system of demanding only direct bills of lading. Credit is more easily and cheerfully granted when goods are shipped and drafts drawn against bills of lading than when on open account. No drafts can be drawn against direct bills of lading and therefore credit in those four countries has to be restricted to just as much as can be sold on open account or against un- protected clean drafts. - — In some cases, and to obviate the difficulty, goods are consigned to a bank requesting that they be transferred in bond upon acceptance of draft attached. Very few banks will accept the consignment because of responsibility incurred on becoming importers. Besides, it is a very roundabout way and drafts drawn on a merchant with bill of lading to the order of a bank cannot be negotiated except after acceptance of such drafts. There is no doubt that if the Governments of the four countries were re- quested to lift the unnecessary and cumbersome r^triction, they would not hesitate in doing so. Their countries would be the first to enjoy the benefit as they would command better and larger credit everywhere. It is true that when the buyer is inland, the bills of lading would have to travel to his place of business and back again to the coast, causing a loss of time perhaps longer than the Customs grant ior making entries. It is also true that the clearing of the goods would be delayed until arrival of shipping papers duly endorsed. The difficulty would present itself in only one country — Colombia — TRADE REGULATIONS 291 where merchants in Bogota and other interior cities might be handicapped by un- usual delay. But this can be easily arranged by granting extension of time and holding copies of bills of lading at the agency of collecting banks in the port of entry. The banks collecting drafts against merchants in Bogota, Medellin,' Mani- zales and other cities have, all, branches or agencies in Barranquilla or Cartagena. Copies of bills of lading could be mailed to th€m by shippers, the banks making entry or endorsing to customer's agents upon telegraphic instructions from the bank or branch at buyer's place of business. Anyhow, the matter is of little im- portance to prevent the adoption of a principle so advantageous to trade as a whole. Another matter worth mentioning is the diversity of taxes and regulations regarding traveling agents or salesmen. In no two countries are these taxes and regulations alike. Some countries hafe established a tax for the entire country, others for each province, and others for each (or some only) of the municipal districts. The tax, in some cases is so high that it makes it prohibitive for all except the few privileged large concerns who enjoy this advantage against the smaller ones. The principle of taxation seems to be that the travelers "do business'' and that were they not taxed they would have an advantage over the domestic con- cerns who pay income tax and other dues. Should this reason be accepted the same should apply to all concerns "doing business" by mail, they are not taxed and still they "do business." It is confusing the traveling salesman with the peddler. The distinction, however, is evident. The traveling agent takes orders, stimulates the trade, theoretically, and is no more than what can be called a "living letter." They do not sell merchandise except to importers (or would-be importers) but never to the public directly. So long as they do not carry merchandise they are not merchants, they are only agents for a foreign merchant who might avoid the tax could he be convincing enough to sell by mail only. The occasional visit of traveling agents, as stimulating the trade as a whole, is nothing injurious to the country, it deprives nobody of anything and rather they assist in the advancement at large of the country by introducing new articles of consumption, arousing healthy competition, teaching new methods of production and distribution, expanding the commercial knowledge of the people and what is more important, serving in the end as living propaganda for the countries they visit. No better actual information is obtained of the world itself than is furnished by traveling agents who in fulfilling their mission, study the different countries and circulate more or less profusely the information gathered. There is no reason on earth to penalize them. Every country has a right to impose its taxes, and the right of so doing, in this case, is not questioned. But again we have the annoying diversity of them and their unreasonable- ness in some cases. Also the diversity of regulations to which they are suhj'ect. It would, be reasonable to establish a tax, if it has to be, commensurate with the importance of the business done. If a man can sell one million dollars in a country in one trip, he should pay more than the one who can sell ten thousand. A lot would be gained if such tax was graded covering not the actual traveler but the firm he represents so that within the economic year another traveler of the same firm would not be taxed again. The more men that visit a country the better. Finally the question of duties and regulations on samples and other means of publicity is another annoyance that stands in the way of a smooth and rapid expansion of trade. . Regulations of samples and advertising matter, with or without value; are not alike in scarcely two countries out of the twenty. Some countries allow the importation of travelers' samples in bond ; others collect duty and refund a part of it if re-exported within certain time ; others treat them in a different way. There is no question as to the right of each and every country of establish- ing all kinds of regulations to suit themselves, with or without reason. But they are all naturally interested in advancing their trade at large and inducing the settling of more people and their interest in the country. Trade is the best in- ducement, and all that helps trade is, or may be, a factor in the inducement. It may be far fetched to link the better facilities granted to samples with any kind of improvement to the country. However, small factors combined with each other, and with other large ones, achieve, in the end,' sometimes what never could have been expected. 292 SECOND PAN AMERICAN COMMERCIAL CONFERENCE Facilities granted to the importation and display of samples may serve to stimulate competition from other countries and improve trade in general. New articles which must be demonstrated do not succeed if described on paper alone. New designs may not be well shown except in fact. It is true that too many facilities may breed abuse and that the trade and the Government may suffer because of free importation of samples of articles which are not intended as such. But this can be duly regulated everywhere on a similar pattern. Social and ethical conditions are almost the same in the twenty countries and the experience of all combined may produce a very reasonable and intelligent manner of treating them in all. •Advertising is more or less handicapped in some if not all the twenty coun- tries. The circularizing of catalogues, pamphlets, posters, etc., should be encour- aged rather than restricted everywhere. No modern business can today live if it is not properly supported by advertising wliich is perhaps the finest and most subj;le form of valuable and agreeable instruction. These comments are not new. As said before, some are as old as 30 years. They are repeated with the idea that perhaps at this gathering of practical men something more efficient than has been done might be done now. All the recommendations and resolutions of the different Pan American Conferences, while tending to the same end — the betterment of commercial relations between the United States and its twenty sister republics — have too long a course to follow to achieve results. It might be better to proceed at fhis time in a different way. Instead of appealing to the Governments through official channels, via the State Department and the Ministry of Foreign Affairs and Finance, etc., why not appeal to them through the commercial channels? Send a few men to visit those countries on be- half of the commercial organizations of this country. Let them appeal to the busi- ness men in Latin Am«rica and, with their support, appeal to each Government re- questing the adoption of what is aslced for. They are all reasonable, they are all interested in the welfare of their countries. They can see that no underhand profit is sought for, no business involved, and that it is just as much to their in- terest as to ours to improve conditions. And let them stay there until it is done. Otherwise we will continue to talk, write, recommend and resolve without any other result than the poor consolation of having tried again in vain. SOUTH AMERICAN TARIFFS By Dr. F. R. Rutter, Statisticai, Adviser, Bureau of Foreign and Domestic Commerce. (Read at the Evening Session of Wednesday, June 4) There are three features of South American tariffs to which the American exporter takes exception. He objects to the form of the tariff and to the numer- ous surtaxes because they complicate the system unnecessarily and make it diffi- cult to ascertain the exact contribution that his shipment must bear. He objects to the rates of duty in force as unnecessarily high and as bearing no obvious relation to the character and value of the goods. He objects to the methods of administering the tariff and especially to the numerous fines imposed, often for acts or omissions of which he was unconscious. Without question the tariffs of Latin-America are far more complicated than those of any other region. During the eight years that have elapsed since the meeting of the first Pan-American Conference there has been distinct improve- ment; Colombia and Chile' have adopted straight specific rates of duty in place of the systems formerly employed. Salvador has eliminated the complicated system of assessing duties and has consolidated the surtaxes into a single rate for each article. Three years ago Ecuador imposed surtaxes of 125% per cent in addition to the rates of duty prescribed in the tariff. These have now been consolidated into a single rate, but just recently a new surtax has been imposed. Paraguay has also united its surtax with the regular import duty. There has thus been distinct progress in the simplification of the tariffs, although much is still left to be accomplished in this direction and the Pan Ameri- TRADE REGULATIONS 293 can Union, representing as it does the Governments of all American countries is in a peculiarly favorable position to urge further reforms. The rates of duty, however, have not been reduced — on the contrary there has been some upward movement. This perhaps is unavoidable, for in South America the Government depends mainly on import duties for its national reve- nues and to a large degree for its local revenues. Imported goods are consumed largely by the well-to-do and wealthy classes, whose demand in the majority of cases is not materially diminished by the duties imposed. The American exporter to Latin-America is, of course, interested in the rates of tariff duty. He must know the charges that will be levied on his goods in order to determine the probable extent of their sales. In order to determine this it is greatly to his advantage that the duties be stated in the tariff clearly and simply. But his much more immediate interest lies in the question of fines. Many instances have come to the attention of the Bureau of Foreign and Domestic Com- merce where a reputable American exporter received from his South American correspondent claim for a refund of fines imposed on the importer, but where the exporter was not informed precisely why the fine was imposed or in what respect he had been culpable. In order to escape fines the importer must declare his shipments with great precision. The article must, as a rule, be described in the terms of the local tariff. The weight or other unit of quantity must be precisely shown. Any inaccuracy in description causes the importation to be regarded as an attempt at smuggling and the goods are liable to be confiscated — or rather a fine equal to the value of the goods may be imposed. It is natural that the importer who understates the quantity may be penalized, but in at least "one country an overstatement of quantity also subjects the importer to a fine. But this all has to do with the declaration submitted by the importer. How is the American exporter concerned? Goods are declared solely on the basis of the documents that the importer receives. In some countries the law requires that the declaration on the entry shall agree with the invoice. Any inaccuracy in the documents received by the South American importer consequently leads to a faulty declaration for which he is penalized and he naturally looks to the exporter, who was responsible for the initial error to make good his loss. To avoid error on the part of the importer it is, therefore, imperative that the exporter in this country shall describe the article accurately according to the tariff of the country to which it is shipped; that he state precisely the quantity of the article — neither more nor less; and that he transmit promptly the number of copiel of the various documents prescribed by the regulations of the importing country. LATIN AMERICAN TARIFFS By William C. Wells, Chief Statistician, Pan American Union. There has been much criticism, especially since the beginning of the war of Latin American Tariff laws and the methods of applying the laws. Very little of the criticism is justified or even intelligent. It follows one of two lines of thought: First, that the laws themselves are unfair to exporters (i. e. the foreign manufacturer) or are constructed so as to give preferences to certain kinds of goods as against other kinds, or contain schedules and classifications at variance with the industrial and trade usages of all the world, and that these schedules are often absurd. Second, that the administration of the laws is capricious, unfair, not unform, even corrupt, and that fines and forfeitures are imposed for insignificant lapses. It is safe to say that not one criticism or complaint in twenty has come from anyone with a prior understanding of the operation of any tariff law outside the ones criticised, the United States tariff law for example, or who appreciates how any tariff law does and must affect the foreign shipper. To many exporters all tariff laws, except those of their own country, are restrictive, bothersome, apparently capriciously administered, illogical and even absurd. They know nothing about how the laws of their own country are administered and nothing about how these laws in the economic sense touch the foreigner, although they may have a very 294 SECOND PAN AMERICAN COMMERCIAL CONFERENCE true appreciation of liow their own laws affect the industry of their own country.. Their only real knowledge of the operation of tariff laws is when they first meet them as exporters. If such a one happens, first, to send his goods to Argentina or Cuba he finds much to criticise; he would find just as much if his first! venture was to Spain or Italy, and if he were a Spaniard or an Italian would find more if his first venture was to the United States. One must understand that all tariff laws are in restraint of trade, necessarily so even when not so intended, but often intended to be so. Every entirely free country exercises to the fullest extent its right to construct its tariff system for the benefit of its own industry, itfe own commerce or its own Nrevenue. It matters not if the systerii does hit the foreigner, in fact, hitting the foreigner may be one of the purposes of the system. No country has gone farther in this last direction than the United States and it may be added that no countries are freer from this purpose than the Latin American. Latin American tariffs are primarily for raising revenue. Most Latin Amer- ican governments are apt to look at the particular tariff provision from the point of how nvuch revenue it will produce, and consequently rates are often raised or lowered in experimental attempts to arrive at the high revenue producing mark. A secondary purpose underlying Latin American tariffs is that which generally speaking has been the chief purpose of the United States tariff laws and revisions thereof to protect .domestic industry. But the bases for the protection of domestic- industry through tariff laws do not exist in any of the Latin American countries as in the United States. These countries are not manufacturing countries in the sense that the United States and Western Europe is. A law intended to foster an industry can never become a protective law until the industry exists, and then it is protective only to the degree, in kind and quantity, to which this domestic in- dustry is able to supply the domestic wants. Certain Latin American countries, notably Brazil, Mexico, and Chile, have enacted tariff laws intended to be pro- tective but the industries have in only a few instances responded in quantity, and less often in kind, to the domestic demand, so that the foreign exporter may ordinarily disregard the protective feature of Latin American, even of Brazilian, Mexican and Chilean tariff laws and regard all such as being high tariff rates and in a certain degree restrictive of trade. In other words, Latin American protective laws are very apt to be not protective, although far above the revenue producing mark. There is no justice whatever in the criticism that Latin American systems are unjust to the foreign exporter. On the average rates are less than the United States rates under the present law. and very much less under older laws. There are some exceptions to this statement ; Brazilian and Venezuelan rates are on the average higher than United States rates and this is pefliaps true of the Colombian also. It is difficult to draw an exact comparison on account of the different class of imports as well as the different bases of the laws, but of classes of goods that may be comparable the duties in Latin American countries generally are on the average less than United States duties, but they are not, even in Brazil with the highest rates, restrictive to the degree that United States laws are restrictive. Brazilian high rates do not exclude products to the extent that lower United States rates do. If the foreigner has any right to complain on the score of injustice it is that his product is excluded or unduly restricted. As a matter of fact, no" foreigner, least of all an American, has any right to complain on this score. If it be a sin to devise tariff systems in aid of domestic commerce and industry, then the United Slates. Germany and France have been the chief sinners and nearly all the criticism of Latin American tariff has come from these countries. There is more justice in the criticism that Latin American tariff schedules do not reflect modern industry and so are unscientific. But so are all tariff schedules, although not all are as faulty as the Latin American. There is alro justice in the criticism that Latin American customs appraisals, i. e., so much of the appraisal as concerns the classi- . fication of goods, are not uniform, and especially that officials in different ports appraise differently. But these defects arise from the same cause and it is a cause very difficult to remove anywhere but especially difficult in the Latin American countries. The faulty schedules can be corrected only by tariff experts who are familiar with world industries both from the manufacturing and the commercial side and have at the same time technical ability to construct tariff schedules in Spanish (Brazil in Portuguese). No country is able to assemble any such group of technicians unless it be a large industrial and commercial ccmntry like England, Germany, France and the United States are able to secure the next best s'ei"vices TRADE RECULATIONS 295 and consequently we find the tariff systems of Germany, France, the United States and the limited English lists best constructed and most nearly responsive to industrial and commercial conditions. Most other tariffs are badly constructed and the degree of badness in general is in proportion to remoteness from the world's great industrial centers. The industrial expert is not the product of schools and universities but of industry itself. He comes from the factories, not from the libraries. Latin America nowhere produces such experts, and so if it needs the services of such m'ust engage foreigners. The foreign industrial expert, unless his disinterestedness be above suspicion, is a rather dangerous adviser in the prepara- tion of schedules. Most Latin American schedules are antiquated and most of them were con- structed from the retail dealer's standpoint with the very limited view such dealers have of industrial production. Many of the schedides are so out of date that no attempt has been made to appraise articles within the classifications. Such schedules are abandoned. Latin American tariffs might be revised so as to respond in some degree to world industry and commerce with the assistance of industrial, commercial and tariff experts from Eiiirope or the United States, but it would not be advisable to go very far in elaborating schedules. Outside of the fact that the industrial ex- pert might be prejudiced in favor of the industrial methods of his own country or of one industry as against a competing industry and the danger that schedules pre- pared under such advice would be lop-sided is the fact that highly elaborated schedules require the same measure of expert attainments in interpretation as in confection. Although a Latin American country might secure the services of ex- perts in manufacture to assist in framing schedules no Latin American country could secure a corps of industrial experts to act as appraisers. The expense would be prohibitive. The cost of administering the United States tariff law is greater than the customs duties of any Latin American country. The cost of administering a tariff law composed of schedules requiring industrial expert appraisements would be greater proportionally in Latin America than in the United States, since the appraiser would of necessity h;ne to be a foreigner or a native trained in foreign industrial plants. Such men require more money than the home-trained industrial available in United States customs' houses. But disregarding costs arising from higher salaries and larger bodies of appraisers is the fact that no corps of ap- praisers in sufficient number could be secured by any non-manufacturing country. Even if desired, no Latin American country can administer an ad valorem tariff law unless the rates are made so low as to make negligible the danger of 'under- valuation, or, disregarding the questions of revenue and unfair competition, it chooses to incur this danger. Turkey and China with low rates have been ex- amples of undervaluation running riot, although the inducement to fraud was not great. Neither can any Latin American country properly and fairly administer a specific tariff with schedules requiring expert professional appraisement except to a very limited degree- The ideal Latin American tariff law is one with specific rates, and schedules and classifications understandable alike by the non-expert importer and the non-export appraiser. Such a law does not satisfy the theorist, but it is the only kind that can be fairly administered and produce the required revenue. As a matter of fact, such in general is the type of all Latin American tariff laws. If the schedules and classifications were modernized and drawn a little farther away from the retail dealer's point of view they would ordinarily need no other change or improvement. UNIFORMITY OF CUSTOMS LAWS AND REGULATIONS By Nicolas ■ Hernandez, of Havana, Cuba. As the Conference will without doubt discuss matters that will principally have in view the development of commerce between the countries of the American continent, we respectfully wish to submit to you the proposition that the customs regulations and tariff laws be placed on a scientific basis ; that is to say, that all countries composing the Pan American Union adopt identical custom regulations governing general questions and that in regard to tariff laws they should introduce identical general classifications, leaving to each country the rate of duty to be assessed in accordance with its own general interests, and the sub-classification of its own products in so far as the necessities of the case may demand. In regard to the question of tariffs for instance, a commission should be appointed that after having studied the question should draft a law to be submitted to another Conference to which all countries should send representatives, each one with full power to enter into an agreement that the proposal as agreed upon by that Conference be enacted 296 Second Pan American commercial conference into law, so that only the rate of duty may vary in each country, which rate of duty as has been said, should be left to be fixed by the Congress of ecah country for itself. The different points that would present themselves for consideration on account of their' importance are the following : In connection with the weight of merchandise enormous absurdities are com- mit''"l ; for instance, the weight of packing is treated as part of the weight of dutiaoie merchandise, the result being that such extremely fine and delicate articles, as silk and others, are packed in insufficient containers in order to avoid the pajr- ment of the same rate of duty on packing that may be assessed against articles of luxury. The latter should be assessed a certain percentage of their value, severe penalties being imposed for undervaluation both against the importer who under- values the goods in his declaration and against the employees of the custom house who by collusion make themselves accomplices in such attempts at fraud- The United States, through its consuls, is informed of the prices on merchandise, and when invoices are presented on the valuing of merchandise the consul notifies the custom house where the goods are entered, and then the shipment is appraised at its true value or the valuation is submitted to experts. Another very unjust pro- ceeding is followed where in the same package, for instance, are enclosed 95 per cent of canvas, paying a low duty, and 1 per cent of silk, paying a very high duty; in this case the custom house will enforce the payment of duty on the whole shipment at the highest rate imposed on any of the goods contained in the package. This is a great injustice to the importer, who is thu^ made responsible for the mis- take of packers in a foreign country, who in general are common laborers, for to employ tariff experts as packers would make the price of merchandise prohibitive. We know the case of an importer who ordered ordinary pictures {cromos') and with them two or three dozen pictures of higher grade ; the custom in Germany was to place the better pictures (_cromos) in envelopes and the country for which the pictures were destined assessed a very high rate of duty on envelopes in-order to protect a local industry; the result was that the entire shipment weighing many kilos was appraised as envelopes, thus causing considerable losses to the importer. Another ridiculous instance of the assessment of duty by weight is that of watches imported for the use of the humble laborer, resulting in the cheapest watches pay- ing the same duty as jeweled watches with gold cases imported for the wealthy, jjj cases like these duties should he assessed on the value and not on the weight. We could cite many other absurdities in the tariff laws from the Behring Straits to the Straits of Magellan, and the hour has come when all these countries should appoint for the drafting of tariff laws a commission composed of scientists, economists and commercial experts. Other laws that require uniformity are the Customs Regulations in force in all these countries. The matter of fines is indeed one of the points most vexing to importers. In some countries the rule exists that a certain percentage of the fines is distributed among the employees of the custom house. This has resulted in some countries in a very terrible persecution of importers. The entire amount of legitimate fine imposed should flow into the public treasury. Referring to fines we are familiar with a case the flagrancy of which will serve as an illustration to show the extent . to which such abuses may be carried. In a certain South American country it is required to enter on consular invoice the entire paragraph of the tariff law under which the goods to be imported are to be entered. This is ridiculous. Goods should be listed in the consular invoice under their name, and when the customs declaration is made by the importer they should be placed in the classification to which they belong. A firm in Baltimore shipped 30 cases of canned peas and for the reason that in the consular invoice the goods were specified as "canned peas" instead of "preserved food" as the tariff law of the importer's country required, an error due entirely to the exporter, the importer was fined three times the price specified in the invoice; and the most cruel and tyrannical feature of the case was that he was not even permitted to abandon the goods, as is done in the United States, but was forced to accept them and suffer the consequent loss. This custom of punishing the innocent is very prevalent. We can cite another instance. A merchant in Porto Rico applied to the consul of a South American country for information regarding details relative to the declaration of merchandise. The consul gave him the desired information, which, however, proved to be incorrect, with the consequence that the importer was fined three times the value of the merchandise declared in the invoice, the importer thus having to bear the entire consequences of the ignorance of the consul of the country by which the fine was imposed. TRADE ItEGULATIONS 297 In the custom iiouse of the United States if consular invoices are incorrect the importer is permitted to withdraw the merchandise under bond so to produce a correct consular invoice. This is an honorable, democratic and human proceeding. Commerce between the American countries should be stimulated to the highest degree, but the result of these tariff interferences is that exporting countries like Argentina, Uruguay and United States and others depend entirely on commission houses that are not always honest and honorable; and a great number of manu- facturers and merchants who would send their goods at much more reasonable prices than the commission houses and thus benefit all the countries of the Amer- ican continent, are debarred from the export trade. There is also a law in various countries that prevents the consignment of goods "to order," that is, the shipment of goods unless they are shipped directly to the importer. The practise in recent years of civilized countries that have ad- vanced beyond the colonial ideas of administration, has been to make the shipment with draft attached to bill of lading. These drafts are discounted by the bank and the merchandise is held as collateral security for the draft. The merchandise, therefore, belong to the holder of the draft, and for that reason is shipped "to order" and does not become the property of the importer until he has covered the sight draft or accepted the 60 or 90 days draft attached to the bill of lading. The result of this prohibition of consignment "to order" is that many transactions are prevented that could otherwise be easily effected, and the poor importer is left at the mercy of the commission houses. Consular invoices is another matter that requires consideration and study, for Consulates should be considered as centers for the development of commerce and not as sources of tariff income. We recommend the practice carried out in the Dominican Republic,, where the importer pays the consular fees at the time of paying the tariff duty; and in reference to the consular fees we suggest that the percentage of the value of the goods covered by the invoice be charged ; such a charge, equitable and in proportion to the goods imported, would, unlike the present consular fee, be prohibitive for the small importer. This would also reduce the clerical force and responsibility of consulates and would avoid irregularities com- mitted by consuls and their employees such as we all know, and the exploitation of the sale of blank forms as well as the interposition of obstacles in order to compel the employment of a special agent who tips the subordinate consular employees. A means should be found enabling the merchants of ont country to ship to other countries directly without being forced to have recourse to the service of forwarding agencies that make excessive charges which result in grave injury to all importipg countries, for as we have said before, all such charges must be added to the price of the merchandise and this in turn has to be paid by the people who are the final consumers. When exports are made from interior points or from parts where there is no accredited consul, commercial invoices sworn to by some member of the exporting firm before a notary public designated by the consul of the importer's country, should be accepted as consular invoices and should serve as a basis for the im- porter to make the necessary declaration and customs entries. It should also be agreed by the countries composing the Pan American Union that official charges of falsifying prices made a,gainst exporters should be duly investigated by the au- thority of the country where the fraud is committed and if substantiated should be presented to the courts for the punishment of the persons committing. perjury. It would be well if in all custom houses there were interpreters for the official languages of all American countries, that is to say, Spanish, English, French and Portuguese, and if it were permitted to exporters to make their invoices in any one of those languages, instead of being forced to make them out in the language of the importing country. This latter has resulted in the refusal by many important manufacturers to export their products directly to other countries, as this requisite necessitates the employment of extra clerical help, for whom they have no real need aside from the few exports that they might make. The trade thus falls into the hands of commission houses of which many indeed are honest, but among them there are others who live exclusively on the pilferings made from Latin American commerce. In the same manner it should be agreed that invoices can be made out in the weight, measures and money of the exporting countries, the task of making the corresponding reductions to the standard of the importing country falling to the importer in making his custom house entry. The uniformity of tariff laws and custom house regulations wpuld be a long step forward, and the only variable quantity would then be the tariff rates which would under the proposed plan be fixed by the importing country. 298 SECOND PAN AMERICAN COMMERCIAL CONFERENCE FINANCING TRADE PAN AMERICA'S PLACE IN THE RECONSTRUCTION OF EUROPE By Frank A. Vanderlip, Late President of the National City Bank, New York. (Delivered at the Morning Session of Thursday, June S) I was struck, Mr. Chariman, particularly with something, you said — that it had been so often repeated that we are in a new slate of the world, a new order of society, that our minds had rather grown calloused to that and we did ,tiot after all think it was quite true. I want to tell you it is true! We are living in such a world as we have never lived in before and not very many of us have awakened to that. You have been talking here for two or three days about trade between the American countries, but related to that, a part of it, the very atmosphere in which that must develop are the conditions that have developed in Europe, are the conditions that are making the new world in which we are all going to live. And so, instead of talking directly to the subject that you have in hand, I am going to speak perhaps a little indirectly to the subject but fundamentally to the development which I believe is before all of us in this hemisphere. The situation in Europe is a more serious one than has been grasped in this Continent, more serious indeed than has been grasped by a good many Eu- ropeans as yet. Externally, superficially, you would see something like a normal Europe if you had been over the ground that I have — London living its great, lux- urious life as usual; Paris much the same. Externally, superficially you might think no great thing had happened to Europe. You might well be excused after seeing Europe if you still held the belief which I think most people do hold in the United States that the war is over, that of course it has been a great blow, that there has been sad devastation, but that it is oyer and with the signfng of peace Europe will pretty rapidly tend back toward the normal ; that there is a great industrial skillful people; that there are great territories quite un- harmed by the war; that the damage of the war after all is comparatively small, and that all that is needed is a little time to bring Europe back to pretty nearly its pre-war condition. You in South America may be expecting to trade with Europe, to carry on financial and banking operations with Europe much as before. But that picture is not quite true. Europe has received such a shock from the war as has not been measured by those who have seen it at close range. But it is not that direct shock that concerns me nearly so much as a greater hurt than the direct shock of the war which has come to Europe. It is the hurt of disor- dered industries all over that continent, — so disorganized that industry is in large measure paralyzed. Men in great numbers are idle. The difficulties of restarting the industrial cycle are almost unmeasured and the consequences that will flow from continued idleness and want and hunger, from revolution which will follow that combination if it lasts long enough, — those are consequences that will involve two hemispheres, they 'cannot be confined to one should they occur. Now, do not understand me as predicting a conflagration in Europe. I do not believe there is to be such a conflagration, but. I do. believe Europe is balanced on a knife edge as to whether or not there shall be. I think it can be saved;" I think aid can be given to those European states that will help them re- start industry, that will help them put their peoples at work. Nobody can save Europe but Europe's own people. They cannot be saved in idleness, they must be saved by the sweat of their brow and labor. But the difficulty is in starting them. There is tremendous idleness now, — idleness made necessary by this transition from the great war effort to peace times. Men are being supported by millions, by unemployment dole, weekly un- employment wages. In England alone there is well over a million receiving about six million dollars a week in unemployment wages. In little Belgium with only seven and a half million population, there are eight hundred thousand men having a v-^eekly unemployment .dole by which they live. FINANCING TRADE 299 There is so much to say that it is really hard to know where to take hold of it. Perhaps instead of going on here painting a gloomy picture I had better tell you a little of the brighter picture that I see. Mind you, this gloomy picture is a true picture; a catastrophe may come out of this situation which would' affect all of us. I believe that can be prevented. The real danger of it lies the/e and we should wake up to it, should understand it, should accept the re- sponsibilities that that situation puts upon us. But suppose the catastrophe is averted, as I believe it will be. The po- sition of the countries in this hemisphere, vastly rich in natural resources, un- harmed while you to the south of us have benefited rather than been harmed, I suppose — the future of these countries seems to me to be the great, bright spot of the world and the peoples of other countries will turn toward us as a haven, as a hope, as the home of opportunity to get away from the overburdened, tax- ladened, crippled situation in which they find themselves. . The United States, I think, is going to occupy in this new world, if the catastrophe that might come is avoided, such a position as no nation in all time ever occupied before in the world, — a position of opportunity and of re- sponsibility. We are going to be the great reservoir of capital of the world. We are going to be along with you to the south of us the great storehouse of raw materials, of food products. One can hardly understand in what happy po- sition we on this hemisphere are without understanding a little of the unhappy position in which Europe is. Picture just for a moment what this modern industrial Europe came to be. It had grown up from a population of 175,000,000 at the end of the Napo- leonic War to 440,000,000 and that growth had in large measure been the mark of the industrial development of this industrial age. Europe and England, — England particularly,^ — became one great manufacturing community, unable to support itself so far as food is concerned, unable to produce its raw material, just a great manufacturing community, "4aaving some kitchen gardens to in part supply its food, yes, having some raw material and coal and iron and some other things but in the main that great continent had jo pass through its work- shops the raw material which was imported, to sell to other countries that it might get the world exchange to buy the things that it needed. , There has come a shock that has disorganized that industrial situation, that industrial cycle has been interfered with. Europe cannot live except on industry with its present population. She is not in the happy situation in which all of the countries here are. This industrial cycle must be resumed, else Europe can- not live with its present population. The responsible Minister in England said to me that if the industries of Europe are not speedily restarted so that the de- mand of Europe for the products of the British workshops is resumed, if the British workshops cannot speedily regain the European market in something like its old form, then the job of this government is going to be to export five or six million Englishmen to places nearer the source of food supply. That just gives you an indication of how serious that situation is. Now I will take just five minutes more, because I want to tell you a httle of the part I think you of Latin America have to play, with us, in rehabilitating industry in Europe. Industry must be rehabilitated. I do not conceive that that means the loan of great financial credits to European governments. I believe the financial situation of several of the European governments is such as to make it useless to consider making financial advances to put them in a satisfactory finan- ical position toward their own people and toward their external obligations. The thing that is needed, of all else in Europe today, are those materials that are necessary to start industry going: raw materials for manufacturing; machinery; railway equipment (for the transportation system is badly shattered), and, to a considerable extent, food. The giving of food alone will not help this situation. I do not conceive that we need to give anything, either. Europe is still a great, rich continent but with her industries paralyzed. I believe that there should be a group of nations which should include every nation represented here. It should include some of the European neutrals and probably Great Britain. That group of nations should lend to these afflicted countries where industry has so largely ceased, not money in the form of credits to go into the treasuries of those countries, but the ma- terials, the machinery, the equipment, the food necessary to start the industries. 300 SECOND PAN AMERICAN COMMERCIAL CONFERENCE There is no need of giving this in charity. Europe cannot be supported in charity. That is not the way to do it. Neither would I have governments further loans to governments. I have discovered this, that a loan by a government to an- other government is to be regarded in rather a different light than obligations are usually regarded, — at least the loans of this government to the European governments have so come to be regarded. There is a surprisingly general idea, that we ought to forego the loans that we have granted in this war. I would not add to the question that will hand around those loans in the future. I be- lieve a security can be created that will be good because it should be a first mort- gage upon the customs of the borrowing nations and that such a security can be floated in the several countries and it ought to be floated in a measure in these South American countries. Such a security can be floated in the several coun- tries that should supply the things that are needed to restart European industry, that those things should be supplied in the proportion in which the loan is placed. I think something of that sort speedily done would help and would prob- ably succeed in averting a great disaster. Europe must have help, we on this hemisphere must grant it, and it must be in the material things, the things that are needed to get Europe to work so that she can help herself. PAN AMERICAN FINANCIAL COOPERATION By Charles M. Schwab, President Bethlehem Steel Company. (Delivered at the Morning Session of Thursday, June S) Mr. Chairman, Ladies and Gentlemen: This is a warm day, but after that introduction of this eloquent Chairman^ I do not mind saying I feel a good deal warmer than I did ten minutes ago. This meeting has seemed to me to be a very serious one, and I learned many years ago under the preceptorship of my old friend Mr. Carnegie, that good and serious consideration and thought only comes about when we are in a very happy frame of mind and that often the most serious subjects are treated in the lightest possible manner. I do not know that I have anything that I could say to my friends from South America. It seems to me that there is a preponderance of American thought upon these occasions to these people, our friends from Latin America. My experience in many years' business with them, and I have had a great deal with Argentina and Chile and other countries south — my experience has been that if I want to learn a real business lesson for shrewdness, integrity in busmess methods, well, many of us so-called leaders in America could well afford to go to our neighbors in the South to learn. I am a retired country gentleman these days. I am living up on the farm. I did not feel like coming down here, and I should not have come down for anything I might say, but I felt it a duty as well as a pleasure to come and at least show by my presence my appreciation of the distinguished gruests from the Latin American countries who have come to Washington, to this convention. And I am reminded of a story. There is a farmer whose property joins mine up in this little village in Cambria county. He came to me the other morning and said, "Charlie, I would like to sell you this cow." "Well," I said, "is she a ped- igreed cow?" "No, I can't just say she has any special pedigree." "Well," I said, "how much milk does she give a day?" Well," he said, "I can't even say as to that. But I will tell you one thing. She's a good hearted and willing old cow and if she's got any milk to give you she will." Tfhat is the way I feel, I am willing, I know I am good hearted, Mr. Chair- man, I would have been richer if I had not been. I come down here to give you any thought that I may have. They are very meager thoughts, but whatever they may be they are willingly given. I was much disturbed by the lady who is taking down this speech. She asked me a short time ago if I had my address prepared. I said, "No, I never prepare an address," and she said, "Well, I've read some of them and I now understand." FINANCING TRADE 301 The one dominant thought in my mind, which I might impart to you this morning, was this : I was in Europe with Mr. Vanderlip, my old and esteemed friend. We looked around a great deal. One of the great events during my visit there was the occasion to meet, know and talk to that great leader, Marshal Foch. Like any good citizen, my first expression to him was to thank him on behalf of humanity for all he had done. He said to me, "Mr. Schwab, this great general staff directing the army was like a great orchestra in which every in- strument had to play its part harmoniously and play it in sympathy and accord and understanding with the rest of the orchestra. That the baton fell in iny hand was but a matter of chance and good fortune and I did no more than the humblest player in the orchestra for the final harmonious outcome of the great undertaking." That was a generous thought upon the part of a great and generous man. It looks to me very much as though the trade and the happiness and the pros- perity of our American nations must come about for the same reason that the distinguished Marshal said brought such great results in the great world's war, and that is cooperation of all the American nations so that this industry, so that our commerce shall not be based upon a purely national or personal selfishness, but that it will result in the best good to all of us by arriving at the best results collectively. Gentlemen, how happy we ought to be to say that we are citizens of America! Whether it be the United States of America or any of the Republics to the south of us. When, after having gone over the battlefields of Europe and through the torn and conflicting countries of Europe, I come home and see first the great Statue of Liberty on the shores of America, I hold up my head and say, "How glad I am to be a citizen of this great continent!" And why? Be- cause God has endowed us with more of the natural resources that tend to wealth and prosperity than any other country on the face of the earth and what is more important. He has endowed us with a people who are so patriotic and filled with business and other integrity as to develop that which He placed within our borders. - And so, my friends, let us first of all realize, all of us, that in this great Continent of ours we are placed with reference to natural resources that only require our enthusiastic endeavor to bring about prosperity and happiness to all tlie people of our countries. Many people, famous in life, like to see great monuments reared when suc- cessful, to the perpetuation of their memory, great arches, great buildings, great memorials. I have always said that as for me, if the future ever wishes to re- member me, there is nothing I so much desire, Mr. Chairman, as to see great rows of flaming smokestacks and furnaces that shall mark the monument of my American endeavor. I am a manufacturer of steel, primarily. On the East Coast I believe the great future development is going to come. We must depend upon our friends in the south for the raw materials to make the East the successful steel manu- facturing center of ■ the United States and so much confidence have I and my company in the honorable intentions and treatment of American capital that I am risking my all, my fortune, my reputation, my company upon the basis of se- curing the raw supplies of ore and other materials from our South American Republics. I have recently, as many of you know, opened at very great expense in Chile on the west coast the largest docks and shipping facilities in South Amer- ica. I have now under construction and under way, just started, since the war is over, twenty of the largest cargo ships that have ever been built to carry twenty thousand tons of iron ore in each cargo to ply between the west coast of South America and the eastern ports of the United States. We here are just as anxious, . perhaps, for your complete cooperation as you may be anxious for our cooperation in this country. We realize that mutual fairness must prevail for successful outcome of this business. I have never had any other than the pleasantest, the most straightforward and the happiest out- come to all the business that I have ever done in South America, our friends in the South, and I am not afraid to risk anything that may develop in that line in the future. Our distinguished Director General here is a very diplomatic sort of a man and it made me think a little when he placed me on the platform between 302 SECOND PAN AMERICAN COMMERCIAL CONFERENCE the most distinguished American banker and one of the richest and most dis- tinguished bankers in Chile. I wondered if he knew my propensity for borrow- ing money. There is no man in America to whom I will take second place in my ability to borrow money. I love to tell a story of Vanderlip about that. He is very serious these days but he is not so serious at other times. He is the charming, hospitable, de- lightful gentleman of the true American type. But I love to tell this story about him. One time I went to my friend Stotesbury in Philadelphia, a great banker, to borrow money. I borrow all I can get. I said, "Stotesbury, I must have a lot of money for my developments down in Chile." I said, "I need it in the Fall. How much can I get from you ?" "Will half a million do ?" I said, "No good ! I've got to have much more than that. Why, there's my friend Vanderlip in New York — ^he scarcely knows me and he has given me more than that." "Well," said Stotesbury, "that's the reason he has' given it to you." Now, my friends, as I stand here — and I am going to conclude at once — and I gazed at the ceiling of this room as I came in and I saw how appropriately that word was in the four corners of this room, covering the representation of this entire western hemisphere, that word "PAX," Peace — we are now past this great war and in a state of peace, at least peace is at hand, not the conditions that will follow the war that Mr. Vanderlip has so ably described that we have all got to meet seriously, but we are through this great struggle and conflict of arms, we are coming to a condition of affairs that people talk much of — the reconstruction industrially and otherwise. They are great. We must all recognize and act accordingly and act con- sistently. I am one of the people that believes in being consistent. Someone said to me the other day, "Are you a Prohibitionist?" Well, I thought a little about that and thought I would better not commit myself. I said, "Yes, under one condition: That everybody is treated alike. I don't believe in Prohibition that will enable me or Mr. Vanderlip and other rich men to store their cellars with wines and whiskies for the rest of our lives and the other ordinary people who haven't the money to do without it." I believe in fair play for all. If we are going to have something to drink, let us have it. If we are not, let us all do without it. I do not care which it is, but let us be consistent. _ So, I say we must be consistent in our treatment of everybody. There is no aristocracy any more. The old aristocracy of wealth and birth hdve long gone by. The aristocracy of the future will be the aristocracy of the man who does something for the good of his fellow man or his country. Now, let us not talk about it but let us act accordingly, and what is true of individuals is true of nations. Let us act collectively as human beings, doing the best we can for ourselves and mankind. Let us live the life that is worth living, a life of hap- piness and a life of freedom of thought, a fife of manly uprighteousness and in- tegrity and when we have finished this life of material usefulness, let us hold up our head and say with the proudest aristocrat that has ever lived, "I have done my duty and I take my rank with the best of men." INVESTMENTS IN LATIN AMERICA By Julius G. Lay, Foreign Trade Adviser, State Department. (Read at the Morning Session of Thursday, June 5) When we discuss investments in Latin America, we are discussing not only an opportunity but a responsibility. It is not merely a question of comparing the relative attractiveness and safety of South and Central American securities with the inducements held out to capital by enterprises at home. Our new po- sition as the only great nation with large reserves of capital available for invest- ment abroad, and with resources and productive power almost unscathed by the war, not only obliges us to assist our allies in Europe in rebuilding their national economic life, but imposes upon us the duty of assuming the place formerly oc- cupied by European investors in financing the development of the natural re- sources of the other nations of this continent. FINANCING TRADE 303 Before the war, American investments in Mexico were estimated at about one billion dollars. Approximately another billion had been invested in other Latin Americah countries, especially in Cuba. Our holdings in South America were relatively very small. A much larger amount of Latin American securi- ties was held in Great Britain, France, Germany, and Belgium. British holdings were estimated at over five billion dollars, of which $2,350,000,000 had been in- vested in railways, $1,500,000,000 in government, state, and municipal bonds, and the remainder in manufacturing, agriculture, mining, and other industries. The French investments were estimated at one and one-half billions of dollars. Every year large amounts of new foreign capital were placed in government loans or in private enterprises. This source of capital has now been cut off. The coun- tries which had purchased Latin American securities in the past need their funds for restoring their own industries and repairing the damages wrought by the war. Since 1914 the Latin American countries have been forced to look to the United States for the new funds which they required. Unfortunately they have not so far been notably successful in obtaining these funds, although considerable amounts of American capital have been invested during the war in railway and mining securities. The exportation of our capital has of course been restricted since our own entry into the war, and the sale of new securities in our markets has been discouraged even since the signing of the armistice by the necessity of floating loans. Now that our capital is relatively free to engage in foreign enterprises, however, we may anticipate great demands upon it from all of our Latin Amer- ican neighbors. In Europe, the countries which in the past have purchased South and Central American securities will need all of their resources for restoring their own industries and repairing the damages wrought by the war. Although the greater part of our own capital will probably find useful employment at home, we shall still have considerable amounts available for investment abroad. Our bankers are already turning their attention to the requests for funds which they are receiving from nearly every Latin American country. The opportunities for investment in Latin America will fall into three classes. In the first place, nearly all of our neighbors need loans to restore the stability of their government finances and of their currency systems, since both have been subjected to a severe strain by the war. In the second place, there will be a demand for new capital for building railways and for the development of in-, dustrial, agricultural, and mining enterprises. In the third place, we must be prepared to absorb considerable quantities of the Latin American securities for- merly held in Europe. Many of the Latin American governments are at the present time in press- ing need of funds for the rehabilitation of their finances. The war, of course, completely disorganized the commerce of the continent, and in doing so cut off the revenues from customs duties, which is the main reliance of the treasury in each of the Latin American countries. This has made it very difficult to meet the current expenses of government, and has rendered it necessary to float in- ternal loans and to adopt other temporary expedients for tiding over the gov- ernment until the restoration of normal conditions. Some of those countries which were hit the hardest by the reduction of exports and imports have been unable to meet the service of their foreign debts, and have been forced to enter into arrangements for the temporary suspension of payments. All of this finan- cing has been carried on under great difficulties, owing to the restrictions upon the exportation of capital from the belligerent nations. Most of the temporary arrangements contemplated the liquidation of the advances made or the resump- tion of payments within a short time after the conclusion of the war. Con- sequently, at the present time, we find that nearly every Latin American country is in need of financial assistance from outside to enable it to meet its obligations and to restore the normal condition of its financial affairs. There is one aspect of this question of government finance which touches our commercial interests very closely. Several of our South and Central Amer- ican neighbors are handicapped in their relations with the outside world by the defects of their currency systems. Some even of the countries whose money had been based upon a sound gold standard before the war have been unable to main- tain this standard, either because of the drain upon their gold reserves caused by the disorganization of international exchanges, or because an overwhelming 304 SECOND PAN AMERICAN COMMERCIAL CONFERENCE; need of funds has led them to issue unsecured, or inadequately secured, paper money. In the countries having a silver standard, the high price of that metal had led, despite export restrictions and prohibitions, to the exportation of so large a part of the metallic currency of the country as to cause an acute currency short- age. Some countries have been forced to suspend specie pajrments and to issue paper money. In the countries which had an unsecured paper currency before the war, an equally disastrous situation has resulted. The value of the local money naturally declined sharply with the stagnation of commerce at the beginning of the- war. When trade began to revive, the rate of exchange reacted sharply m the other direction, -with the result that exporters and producers suffered severe losses, while the laboring classes, who might otherwise have benefitted by the appreciation of the money in whitu their wages were paid, profited little be- cause the merchants did not adjust their prFces to the new conditions, fearing a reaction in the other direction. In the republics which do not possess stable cur- rency systems, the unsettled condition of trade has caused very sharp fluctua- tions in exchange rates, which have reinforced the conviction already entertained by their statesmen and financiers that the currency systems must be reformed and placed on a gold standard before their commerce and industries can develop as they ought to. Our Government is very deeply interested in the question of stabilizing ex- change rates with our Latin American neighbors, because our commercial relations with these countries can never be so mutually profitable nor so extensive as they should be until exporters and importers both here and in South and Central America are secured against the losses which result from sharp fluctuations in these rates. For this reason the United States Government stands ready to af- ford any assistance which it can in the efforts of its neighbors to reorganize their currency systems. It will be glad to aid them in securing skilled advice for devising means to place their money on a gold basis, and to exert its good offices with American bankers to procure the funds which are necessary for this purpose. The question of currency reform has a bearing upon investments in Latin America, not only because a stable monetary system is necessary to encourage investment of foreign capital and to secure the investor against losses from the depreciation of the gold value of his property; but also because loans for this purpose, and the establishment of banks which may be entrusted with the duty of administering the reform, offer one of the principal opportunities for in- vestment. . In the past, American bankers have perhaps been somewhat over-cautious in dealing with loans to Latin American governments because of the troubled financial history of some of these governments. It is not fair, however, to as- sume that loans made at the present time would be unsafe, simply because the borrowers have had difficulties with their creditors in the past. In most cases the blame for these difficulties lies by no means entirely upon the side of the debtor. Comparatively early in their history as independent states, many of the Latin American countries contracted loans in Europe from which (for various reasons) they received little return, while they assumed an obligation which imposed a heavy and sometimes an intolerable burden on their treasury. Too often little attempt was made on the part of the underwriters, or even on the part of the borrowing government, to make sure that the revenues and resources of the country contracting the loan were sufficient to meet the service of the bonds. The bankers appeared less interested in many cases in the soundness of the se- curities which they sold to the public than in the profits which they made by purchasing the securities from the debtor government at a small proportion of their face value. A debt of this kind did not receive the same scrupulous con- sideration which would have been accorded to a fairer transaction. A very different situation confronts American bankers contemplating loans to Latin American countries at the present time. The governnients have learned much from their past experience, and they have especially learned to appreciate the value of a sound national credit. With the exception of those which have made special arrangements with their creditors on account of war conditigns, nearly all- of the Latin American countries are scrupulously maintaining the ser- vice of their foreign debts. One or two have not yet been able to adjust these debts, by agreement with their creditors, to a point where they are financially FINANCING TRADE 30S able to make interest and sinking fund payments, but there is reason to hope that these countries also will soon take steps to redeem their credit. It is felt, there- fore, that loans made under present conditions offer an attractive and secure investment, for their standing would be entirely different from that of the loans contracted under entirely different circumstances half a century ago. The De- partment of State desires to offer every assistance to American bankers and to our Latin American neighbors in conducting negotiations for government loans on terms which will be beneficial to both parties. Turning from government loans to investments in private enterprises, we find a field which offers even more attractive opportunities. It is a truism to say that Latin America has tremendous natural resources, which only await the investment of foreign capital for their development. This capital, under present conditions must come from the United States. If we do not finance the con- struction of railways, the development of mines and of agricultural enterprises, the establishment of banks, and the extension of commercial credits, the progress of our Latin American neighbors will be retarded for years, with incalculable injury not only to them but to ourselves. Every dollar invested in such enter- prises at the present stage in the development of these countries means a return of many dollars in increased productive capacity, not only to the investor, but to the community at large. New railways, especially, are needed to open up dis- tricts which, despite their fertility, are at present almost undeveloped because they lack means of communication with the outside world. Great mineral re- sources are not available to the world's commerce because capital has not been found to exploit them. The agricultural resources of the tropics have hardly been touched. Only a few products, like coffee, bananas, and cacao, have been grown on a large scale. Other products, which could easily be grown in quan- ities sufficient to feed millions of people in the thickly settled industrial regions of the world, are as yet almost unknown in the world's markets. In the future, with the increase of population in the industrial regions of the world, we shall have to look more and more to the tropics for our food supply. Since tropical agriculture involves large scale production and the application of comparatively large amounts of capital, there will be attractive opportunities for investment in plantations, cattle ranches, canning factories, packing plants, and all sorts of equipment. The people of the countries in which these new enterprises are established will, of course, be the chief beneficiaries, because they will be brought into closer contact with the outside world and will be given opportunities which they never had before to obtain manufactured articles and luxuries from other parts of the world. Our own industries will benefit by possessing an assured supply of raw materials, for many of the raw materials which are most necessary for our man- ufacturing plants are products of Latin America, and are obtained by us chieflv from that part of the world at the present time. In view of the competition f -r many of these products between the great manufacturing nations, it is very im- portant that companies controlled by American capital should be in a position to supply them to our factories. Invesitments in Latin America will have a direct bearing on our export as well as our import trade. The construction of a railway or a factory or the establishment of a mine or a plantation by American capital leads inevitably to the purchase of machinery and equipment in the United States, not only at the time of the original investment, but from time to time subsequently as repairs or extensions are undertaken. Moreover, the new purchasing power of the country whose exports are increased by these investments and whose people re- ceive wages from the foreign corporations, leads naturally to an increase in im- ports, and a large part of these imports will come from the United States. A direct demand for American goods will follow the establishment of American mining, railway, and agricultural enterprises because the needs of the workmen employed by these enterprises will in large part be supplied from commissaries , maintained by the companies, which will, of course, purchase their stock chiefly in our markets. The United States Government has a very direct interest in the question of establishing American enterprises in Latin America, aside from its desire to increase our commerce and to aid our neighbors in developing their natural re- sources. Large foreign enterprises are almost invariably established in Latin 306 SECOND PAN a:\iericax commercial conference American countries under concessions, which define the privileges granted to and the obligations assumed by them. In the past these concessions have too frequently been a source of friction between this Government and its neighbors. Latin American governments have had inadequate facilities for ascertaining the reputation and financial responsibility of companies seeking special privileges, with the result that the conduct of these companies has sometimes brought dis- credit on- all American enterprises and has led to unpleasant diplomatic incidents. The concessions themselves have often included provisions which were unfair to the people of the country concerned, or which were a bar to the establishment of other foreign enterprises. The State Department, therefore, has a direct in- terest in seeing that these concessions are granted to concerns which are capable of carrying out their provisions, and these provisions are fair both to the people of the country granting the concessions and to other foreign interests. It be- lieves that it can be helpful both to our neighbors and to American investors, through exerting its good offices to assist in the establishment of mutually prof- itable relations between them. - The purchase of Latin American securities now held in Europe is of less importance, perhaps, than the investment of money in new enterprises, but it nevertheless offers an opportunity which should not be neglected. As a conse- quence of the impending readjustment of the finances of some of the Latin American Governments, many issues of bonds now held in Frahce and England are likely to be refunded with American money. Other securities will be sold in this country as a partial payment of the ever increasing debt owed to us by the European countries. The purchase of these securities has two important aspects. In the first place, our increased participation in established enterprises will necessarily stimulate our trade with Latin America, to nearly the same ex- tent as the investment of capital in new enterprises. In the second place, the investment of money in European securities, and in the securities of other coun- tries which are now held in Europe, is absolute!}' necessary if our exports to European countries are to continue, because these countries cannot' pay for the supplies of which they are desperately in need in any other way. Many of the bankers of the United States have shown that they are fully aware of the opportunities which exist for investment in Latin America and of the desirability of making investments there. The recent establishment of the Foreign Bond and Share Corporation is a hopeful indication that these oppor- tunities are being considered in connection with the broader interests of our com- merce. The problem at present is to educate the investing public, in order that there may be a wide market for Latin American securities in this, country. As I have already said, the public must realize that it is not merely a matter of bal- ancing the immediate return to be derived from similar investments in the United States. The vast potentialities of development in Latin America, and the im- portance of this development to our own commerce, make these investments a matter not onl}' of private profit but of national interest. They offer us an op- portunitj-, furthermore, not only to benefit ourselves, but to cement our own re- lations with and to assist in the development of the nations which are closest to us, not only in actual distance to be travelled, but in historical affiliations and political ideals. FINANCIAL AND COMMERCIAL RECIPROCITY By H. H. Mersick, President of the Chicago Association of Commerce. (Delivered at Morning Session of Thursday, June S) Mr. Chainnan, Mr. Director General, Friends of this Conference: The inodn hour is here and as Mr. Schwab said, it is decidedly warm, so just a few minutes from what vye call the Central States — the Middle West. Speaking for Chicago, for the Association of Commerce, to this great conference, we bring you a message of greeting of good will from that great district of the United States. It just seems to me, speaking for the Alississippi Valley — more than one- half of the United States, that this meeting here in Washington, where you have such a remarkable attendance from all of the States to the south, from all of the FINANCING TRADE 307 United States, in itself is a measure of the success that has attended the efforts centered in the Pan American Union in these last several years. We are discussing today in Paris and again here in Washington at the Capitol, world problems primarily concerning the European and Asiatic nations, and we are attempting, as are our Allies, to settle these _questions for the long future that peace may be present in the world. It seems to me in thinking of this Conference, that in a large measure we have worked out these problems in the Americas, North and South, that in our ability to gather together under this roof, to discuss problems as neighbors, as friends, we have the solution really in our hands. But that realization is far better if it can only be brought about for the world and that, in reality, whatever system and plan shall be arrived at in Paris, the influence of this successful neighborhood and combination of nations will be all powerful for the future. , Recently, we formed at New Orleans what we called the Mississippi Vallej Associa^iion and we gave it final form in April in Chicago. Director General Bar- rett was one of our chief guests of honor. He brought to us then the message of the importance of this Pan American relation in that association, (I believe it is worth while to comment upon it now), we have fifty-six. million people of these United States. We have twenty-two states and parts of four others, and tonight as the guests of that association the Senators of those twenty-six states will sit around one table. Primarily, the ..Mississippi Valley in its derivation is Latin, French and Spanish, if I understand and read history correctly, and we of the Valley believe that we understand this Pan American Union, its purposes, its plans, its ideals, its actual practical accomplishment, better by reason of that admixture of Latin blood which, from north to south, is present in that great region, than would otherwise be the case. And so, in these few words, after you have heard from men like Mr. Vanderlip and Mr. Schwab and our friends from Latin America, we of the Valley say to you of this Conference that we believe the future of America, the future of the United States as a part of America, lies in this Pan American Union and in the development of friendship, the spirit that one neighbor should have for another, and we believe that that progress is occurring rapidly and that the trade and commerce we have together will fortify that friendship, that exploitation lies far in the past, that the progress must be mutual. We of the Valley believe that in this mutual progress whereby Latin American countries shall be enabled to make use of the resources we have accumulated in their development, that so far as it shall be along banking and trading lines it need not be by the mere training of our people of the United States to go out to conduct this business arid this banking, but that we shall use all that exists in the states to the South in that progress. And so far as we shall establish banks, we of the Valley hope to do so in the several American Republics under the conditions and under the legislation that exists there and to man those banks and those trading offices with men of those countries. For I. in my twenty-one years of business life, have found as Charles M. Schwab well said, that the men of Latin America are not only shrewd and keen and well trained in commerce and in finance but they are highly hon- orable, and in twenty-one years of actual trade for the great house of Armour and Company throughout the world I say to you today nowhere has my experi- ence been so widely satisfactory as in Latin America. SURETYSHIP AS AN ESSENTIAL AID TO PAN AMERICAN COMMERCE By Jarvis W. Mason, Vice-President American Surety Company of New York. Suretyship has been an essential of commerce and an aid , to many of the more intimate incidents' of life from the earliest ages. In fact, among the stone tablets discovered during the last quarter of a century in the ruins of ancient Sumar, which tablets form part of the libraries of kings and rulers who lived cen- turies before the days of Abraham, we learn that a merchant about to depart into a far country and willing to convey the goods of another merchant to the purchaser 308 SECOND PAN AMERICAN COMMERCIAL CONFERENCE in that far country gave surety that he would deliver the goods as agreed, collect the price and pay it over to the seller. Again we learn that a man about to depart upon the "way of the king" (upon a military expedition) took surety from his steward that he would faithfully administer his estate in his absence. Coming to a period with which we are more familiar, it would be remembered that Benjamin was held by his brother Joseph as surety that his brother would re- turn into Egypt. In the days of Solomon, King of Israel, suretyship was so common that it seemed wise to the King to caution his people not to become surety for a friend. But suretyship as a business or, as I prefer to think of it, as a profession, dates from the early part of the Eighteenth Century and originated so far as I have been advised in London, England, where the business was developed to a certain extent, being confined to what we now call fidelity suretyship and from there was transplanted to this country some thirty or forty years since, and in that time there have developed in this country eight or nine companies transacting suretyship as a business and strong enough to furnish their cUents with satisfactory service, besides a number of other smaller but very useful companies. Suretyship has been best defined as the guaranteeing the fidelity of persons holding positions of public or private trust, the guaranteeing the performance of contracts other than insurance policies, and the executing or guaranteeing bonds or obligations in actions or proceedings or by law allowed. I think a single reading of this definition will convince the reader that the field is a broad one and covers every branch of credit not covered by banks. Should the question occur to you, in what way can suretyship aid foreign commerce, the answer will be equally obvious, that it does so by making the credit of a business man who at home is entitled to that credit equally good anywhere in the world, whether he be known there or not, so that one entitled thereto can be placed upon the same credit footing in Buenos Aires or Rio de Janeiro as he finds himself in his home-town of Indianapolis or St. Louiy. Specifically, if a foreign buyer requires suretyship that goods will be delivered in accordance with contract, the surety company will furnish a bond signed by a local surety satisfactory to that foreign buyer that the American merchant will fulfill his contract. If in a foreign country where you are relatively unknown suit is brought against you in the courts, or if you desire to bring suit therein, the bonds necessary to enable you to postpone payment pending litigation, of the claim asserted or to maintain your action and obtain the necessary remedies will likewise be furnished by a surety satisfactory to the court. Should you desire to transact business in a foreign country whether it be one requiring a franchise or not a like surety will be obtained on your franchise, your license, or your permit bond. Should you de- sire to qualify as trustee of the estate of a deceased or an insolvent debtor in order to best protect your interests the surety company here who knows you will be pre- pared to furnish a satisfactory local surety. Likewise should a native of any Latin American country be in need of similar suretyship in the United States it would be possible for him, through the correspondent in that country of a surety company in the United States of America, to obtain suretyship in any State in the United States where such suretyship is needed provided his credit or the collateral offered entitled him thereto. For convenience suretyship has been divided into certain general classes, some of which are not at all likely to be required in connection with foreign com- merce. But the following are all quite likely to be needed at some time by anyone transacting business abroad : Fidelity (all classes) ; Fiduciary ; Customs and Internal Revenue; Contract Depository; Court; License, Franchise and Permit; Lost Security; Lease. Suretyship is based as I have said upon credit just as much as banking, and that credit is based upon character, capacity and financial responsibility. The pos- session of something of each one of these qualities is required in connection with almost every branch of suretyship but the proportion in which they enter into surety underwriting varies according to the nature of the bond required. But always all three must be present, for you may not safely write a bond as surety of a principal of known bad character even though you hold the best collateral to the full amount, nor may you safely become surety, for one who lacks the capacity to perform that which he has undertaken, and to a greater or lesser extent financial responsibility is always involved. In the case of fidelity suretyship, the predominating quality is character. If the applicant is of good character unless his lack of capacity is very marked it may FINANCING TRAPE 309 be presumed that the employer has inquired into and satisfied himself that the proposed employee is capable, and financial responsibility enters into the question only in so far as one must know that the employee's resources and obligations are in proper proportion to each other. On the other hand, when one executes a bond in a judicial proceeding generally speaking the only inquiry as to character and capacity is to ascertain that the principal be in good repute among his associates, the emphasis being upon his financial ability to meet the demand when, it matures and for that reason quite frequently collateral is required. In the case of a contract bond all three elements enter into the question for a principal of questionable character cannot be trusted to perform his contract if itappears to him to be contrary to his interests so to do. If he lacks capacity he will be unable to perform', and if he lacks financial responsibility he is quite likely no matter how capable he may be to find himself unable to perform his contract. It will be apparent from these comments that suretyship is based fundament- ally upon credit just as much as banking. It will be obvious that credit must be based upon acquaintance and confidence and, therefore, a person should apply for suretyship to one who knows him — preferably to one who knows him at home. Therefore, it seems best to so arrange that when an American desires suretyship abroad he should apply to a company in America and that company should pro- cure and indemnify a foreign surety, and equally when one not a resident of the United States desires suretyship for use here he should apply to a surety at his home who will procure and indemnify the surety here. May I hope that this short article may advise some not familiar with cor- porate suretyship of its value in the promotion of Pan American trade and thereby assist in developmg that intimate busmess relationship between the various countries in America which we all desire and to hasten which we have met here in this beautiful building. INVESTMENTS IN LATIN AMERICA By Mr. Alfred O. Corbin^ Manager Foreign Department, A. B. Leach & Co., New York. Mr. Chairman, Ladies and Gentlemen: As Manager of the Foreign Depart- ment of A. B. Leach & Co., Inc., New York, I am particularly pleased to be able to say a few words with regard to foreign investments, because it seems to have become customary to eliminate the investment houses from any of the discussions at conventions, although every one is telling every one else, that we have to buy foreign securities in order to promote foreign trade. This last point, no doubt, is perfectly correct and logical, but in the final analysis, the investment houses will have to do the buying and the distributing of such securities; they are thus closely interlinked with the foreign trade develop- ment and they should therefore be consulted and heard, especially so as the problems which we are facing today are well nigh unheard of in the history of finance. I am going to be short, sincere and to the point !_ What are we going to buy, and how are we going to buy? Do you all sufficiently appreciate the untold difficulties with which we are confronted today and which make things almost impossible for us? Take for instance Europe! Her exchange situation is already perplexing — Sterling is down to 4.60, Francs to 6.40, Lire to 8.10, Danish Crowns to 23.50, Norwegian and Swedish Crowns to 25, Dutch Guilders to 38%, Austrian Crowns to 4 cents, German Marks to 8 cents, etc. The dollar is yet at a discount in Spain and Switzerland, but that is only a matter of a few more weeks, and what will be the future of all the exchanges when all those countries will have to import practically everything from us, unless we make up oUr minds to come across and loan them money? We have to buy foreign bonds, but the only things we can buy over there, without being reasonably certain that we cannot buy them cheaper within a few months from now, are dollar securities, and this, I am sure, will be done before we are much older. I am not one of those who claim that Europe is bankrupt. Far from it! Europe today offers us opportunities like we have never had! Not only does she offer to buy our goods, but also to sell us her securities at attractive prices ; 310 SECOND PAN AMERICAN COMMERCIAL CONFERENCE and once she gets those goods she will begin the great task of her rehabilitation: and meanwhile our investments will enhance in value and will be repurchased by her, long before they become due. America was never more God's country than she is today: No opportunity like this was ever bestowed upon any nation. They all want money over there and they will pay for it too. Little do the allied or the neutral countries care what they pay, so long as they get it fairly reasonably. The goods which they will get from us will only cost so much more. What does that matter, so long as they get them and can begin their work? Europe is going to be helped, and she will be helped, in two ways : (a) by long term credits; (b) by the sale of securities; and the above will materialize before you and I are much older. And apart from Europe, there is Central and South America to which we have to turn our investment attention. But optimis- tic and full of good-will as we all may be, this field, large as it may seem, is yet small — very small from the investors point of view. A few of the Governments may be able to successfully float an issue: Some cities like Rio, Sao Paulo, Montevideo, Buenos Aires, Valparaiso, Lima may be taken here, but until such time as there will be a more thorough understanding of each other's good qualities and of the wealth and possibilities of all the Central and South American nations, until all these countries will have a modern currency system: and until this democratic Government will adopt a different attitude to Mexico, there can naturally not yet be as ready a market for such securities as we would so much like these to be. Our investors are very conservative : much more so than anywhere else, and big as the U. S. A. may be, they all seem to thrive on the fertile plains of Missouri. Some of our financial leaders have been advocating the formation of investment trust along the lines of those existing in England, in order to facilitate the placing of foreign securities in general, and Central and South American securities in special, but I am not a believer in this kind of a bond for our American investors. It is not the kind of an investment which would go in any large quantities, and apart from a great many other objections, it lacks "scenery" and is too much akin to the old ill-fated blanket mortgage debentures. The American public will buy Central and South American securities but it will come along the lines of the least resistance, and' it will require a long period of education. And it is therefore that I wish to urge all of you, gathered here today, representing the various countries of Central and South America, to go back to your countries and tell them, that they can probably sell securities in America but that they can only do this on any large scale if they teach the American public that these countries are the most wonderful countries on the face of the globe : That their credit is sterling; that their currency systems are reformed and up-to- date, that their business methods are second to none, and that the American in- vestor will have better protection there than anywhere else in the world. That will be your task and for that a prolonged campaign of education and propaganda will be necessary, and I am sure that if you go about it in the right way, that you will find the Americans pretty good students. And it will furthermore be of the greatest importance th^t you should establish the proper banking facilities, so that your securities would always be regularly taken as collateral by the American banks, one of the points which so often is overlooked, and better yet, your banks should come over here and establish such facilities on a large scale. And to Washington I would say: "help us," and don't leave us like the lonely caller in the desert the moment we go ahead! I am an optimist; I see a wonderful world in the near distance and at the horizon of that wonderful reborn world I see in silver letters the words "Pan- Americanism" like so many stars in Heaven. May it be so. ENGINEERING AIDS TO COMMERCE 311 ENGINEERING AIDS TO COMMERCE RAILWAYS IN THE AMERICAS By Percival Farquhar, New York. (Read at the Afternoon Session of Thursday, June S) In the Americas railways have preceded wagon roads and have been the means of transportation and development of the interior in a sense not true with the eastern hemisphere. There is a general similarity of conditions between South America and the United States as distinguished from Europe outside of Russia in that transportation averages large distances to the seaports owing to the great bulk of the countries, compelling attention to grades, train loads, etc., not necessary in Western Europe where no portion of any country is distant more fhan a few hundred miles from a seaport on the Atlantic or on the North, the Baltic, the Mediterranean, the Adriatic and the Black Seas penetrating the continent in so many places. In the United States railways have been constructed by private initiative and capital with the one exception practically of the mountain and desert link of the first transcontinental line, and their location and construction were carried out with a ■ view to operating results as the only expectation of remuneration was from the net earnings to be obtained through the transportation of freight and passengers. Trunk lines with low grades, capable of carrying heavy train loads have enabled transportation in the United States to be carried at the lowest rates" of any part of the world. The well distributed, cheaply mined coal of good quality has con- tributed to this also. As a result railways in United States paralleling river and canal navigation have largely superseded the latter in the economical handling of freight. One great problem that railways in new countries have to meet is the open- ing of sparsely settled, undeveloped territory in order to permit of its settlement and development. Here, unless railways come first, the development may be long delayed and this has led many South American countries to foment the construction of railways by a guarantee of interest on the capital necessary to construct them. Where this has taken the form of a guarantee per kilometer or mile of railway construction, it has led to the location of the railway with a view to cheap con- struction for such unit of length and a constant use in both directions of the maximum of grade allowed in the concession ; with the result usually that such railways cannot transport the produce of the country from more than a few hun- dred miles in the interior, and can never be made into an efficient apparatus of transportation no matter how much money may be spent on them. This character of construction should be limited to branches of well located trunk lines and in cases where they themselves could not become trunk lines or have a heavy traffic. In many cases the temptation of the meter gauge railway has been yielded to owing largely to the sharper curves of which it admits and some small economies of con- struction. But the penalty paid in the operation of the narrow gauge railway increases with its length and the lessened stability of the trains requires much better upkeep of the track than' is the case with the standard gauge, and for obvious reasons when once fastened on a country the narrow gauge is difficult to be gotten rid of. In a country like Argentine, where in general there are no cuts, no fills and no bridges, the narrow gauge adopted by some foreign railway interests and by the Argentine Government lines has the less defense. The bulk, however, of the railways of Argentine by an accident of some old Crimean rolling stock are 10 inches wider than the standard gauge and yet the cars and locomotives are no wider than American standard gauge cars, which deprives these railways of the great advantage of the heavier train loads which the wider gauge should give them. The largest of the European countries and one which at present would hardly be considered a guide for anything in the economical sense, Russia, has successfully used a formula for railway construction which not only is theoretically sound but has worked unusually well in practice. Under this the so-called private railways were constituted with somewhat less than one-half of the railway mileage of European Russia and gave an efficient transportation system with the next lowest rates in the world to those of the United States. The principle was that of enabling capital to be raised at the lowest rate of interest possible by loan of Government 312 SECOND PAN AMERICAN COMMERCIAL CONFERENCE credit, at the same time securing efficiency in the expenditure of this capital in the construction of the railways and in their operation afterwards through private management with a sufficient financial stake in the results. The State furnished ^%o of the capital in the form of guaranteed bonds and private capital %o in the form of stock. The net earnings went somewhat as follows : 2 per cent on the guaranteed 4% per cent bonds, then say 2 per cent, on the stock, then 1 per cent on the bonds, and then 2 per cent on the stock, then the balance 1% per cent on the bonds, completing the 4% per cent interest guaranteed, and then 2 per cent on the stock, com- pleting 6 per cent dividends, after which the surplus net earnings were divided, in some cases four-fifths to the State and one-fifth to the stock, or in some cases nine-tenths to the State and one-tenth to the stock, that is, in a proportion either four-fold or two-fold greater to the stock than the proportion of money repre- sented by it. The directors were elected by the stockhblders of the company and the rail- way was operated with a keen sense of the advantage of valorizing the property in the interest of the stockholders. As a matter of fact before the war the stocks of these private railways earned so well, even at the lowest rates of transportation of any railways in Europe, that they sold from 200 per cent to 500 per cent on their invested capital, and no one grudged their returns, as the .State fared so well on its proportion. The feature of this plan is to make it at all times the interest of the private capital and its managers to locate and construct the railway with a view to its operation and to manage its operation efficiently, and this is one of the reasons the Government gives the stock some of the results before it gets the full return on the bond capital. The formula, with some variations, might well suit the conditions of railway development in the Americas, especially South America. In fuel South America has been handicapped compared with the United States and with Europe. The further increase of miners' wages and reduction of the hours of labor in Wales, hitherto South America's chief source of supply, emjjha- size her need to develop local fuel : powdered Brazilian and Chilean coal which gives good efficiency and the great areas of oil of the Andean slopes both East and West- Oil is the widest distributed of fuels and is found in quantity where for- merly geologists considered it impossible to exist, and is not unlikely to be found in other areas of South America where it is not now known. Cheap fuel is a key to the problem of cheap transportation in South America, and cheap fuel is not likely to be obtained from another hemisphere. New railway construction in the Americas now confronts special difficulties — the high cost of rails, rolling stock, material, supplies and labor for construction and also fuel for operation, likely to continue indefinitely, and the indisposition on the part of public authorities and public sentiment in all countries to allow railways to make much profit even in the rare cases where their rates and concessions would permit them to do so, to say nothing of the present unusual demands from so many sources converging on the money markets of the world. It is not easy to foresee just how the requirements for railway development of the Americas in the near future are to be met. This is a grave enough problem in the United States, concerning the danger of not meeting which we have had repeated warning from one of our greatest railway authorities, Jas. J. Hill, but it is even more serious for our South American neighbors whose total railway mileage is 45,000, compared with 270,000 in the United States, half the area of South America. This disproportion is even greater than it seems, as half of the area of the United States Is arid, semi-arid or roughly mountainous, which is several times the proportion of South America which must be subtracted from possible area of development. Nothing, however, can be worked out which will result in serious railway development until public sentiment has been educated to the point of view that capital invested in railways is just as much entitled to a remuneration as capital in industries such as steel mills or motor companies. It is to be hoped that it is possible to have the public arrive at this realization without too much delay, as the railways are the arteries of the national development, and nothing would be more prejudicial to the public interests than to have them atrophied in any way — a state to which they are too nearly approaching in this country. I have left out of account as a possible method of handling railway con- struction and operation — that of State owned and operated railways, as recent ex- perience of Governmental operation in the United States and in England has been ENGINEERING AIDS TO COMMERCE 313 of a nature to open, the eyes of many previous partisans of this course to the in- evitable objections to it. The palsy which at once creeps through the organization upon the entry of Government management has been too apparent to the traveling and shipping public. In additic4i to new construction there is a vast amount of deferred better- ments on the existing railways in the Americas — additional rolling stock, sidings. new rails, additional terminal facilities, etc. The legislation of the Congress of the United States in connection with turning back the railways here will determine to what extent these betterments here can be financed and carried out. The railways in Latin America have been financed practically entirely with European, especially British capital, and the railway companies concerned have been organized as a rule in the countries furnishing this capital. It cannot now be de- termined to what extent Great Britain and other European countries will be able to finance the requirements of their railway companies in this hemispliere, but it would seem that the demands on them for capital at home and from their colonies might not leave available sufficient funds for their railways in Latin America so that they may wish the United States to join in this financing which will run into large figures. This at the same time would be in the interest of the stability of the investment. In such a case some formula must be worked out which would enable the United States to join. As the world's peace depends largely upon the ability of the present allies to continue to work closely together, industrial cooperation in invest- ment in foreign fields would be helpful. LIGHT RAILWAY TRANSPORTATION SYSTEMS By Chakles F. Lang, President, Lakewood Engineering Corporation, Cleveland, Ohio. (Read by Mr. Lloyd Brown, Vice-President, at the Afternoon Session of Thursday, June 5) The amazing use of the light railway by all the belligerents during the world war has very naturally given rise to the question as to whether this method of transportation has received in the past the attention which it deserves as a means for solving one of the most important phases of transportation, namely, a cheap method for the initial transport of agricultural products as well as cer- tain minerals and other raw materials from the place of their origin either to some trunk line railway or to a nearby market. During the war many thousands of miles of light railway were built and used by all the warring powers on all fronts. As is well known, the trunk line railways furnished the back bone of sup- port for the armies during the war. These trunk lines had to be protected and held at all costs because of the tremendous quantities of supplies, food and ammu- nition which were daily needed by the armies. The great defense trench systems, therefore, were developed some substantial distance in advance of the trunk line system to be supported, the trunk line railway being sufficiently in the rear of the trench lines to be entirely beyond the range of artillery fire, from the enemy. Means of transport had to be provided from the trunk line railway to the supports in the front line trenches. To accomi^ish this end, means of transportation had to be used — horses, mules, carts, wagons, automobile trucks, and last but not least, the light, narrow gauge military railway; this latter because it can be made available not only for use on or alongside the main highways which were also used by the horses and motor drawn vehicle, but also because it could be laid in any direction through the fields so as to reach, by the most direct route, any desired point. By the liberal use of switches, these narrow gauge railways could radiate and extend in all directions from the main trunk line, radiating, fan-like, all over the country to be served. On these railways much heavier loads were transported and in longer trains than had ever been considered possible before the war. This was largely due to the fact that the ties used were of a special oval channel form, nearly twice as heavy as the ties heretofore used on light railways; and, moreover, these ties were spaced only two feet from center to center of tie, and the channel dished 314 SECOND PAN AlfEEICAN COMMERCIAL CONFERENCE formation wedging itself into the soil made the track more rigid than was possible in the more common commercial uses of light railways. The story of the light military' railways will undoubtedly be written by some engineer historian, as it deserves to be, and the study of such a history should lead to a rapid development of the light railway for cominercial, agricul- tural and industrial development throughout the world. The marvelous development of the standard gauge railway within the past century has opened up for development many hundreds of thousands of square miles of territory throughout the world, but in many countries as yet this develop- ment sticks close to the line of the railway itself. % Railways being even yet a new system of transportation, many mistakes have been made in the building of standard gauge railway lines through sections which could not support and maintain such railways. This has been especially true in the western part of the United States and even in some sections of the - east, with the result that hundreds of miles of railways have been permanently unprofitable, and many have been totally abandoned; and as a result of the atten- tion called to this fact by the unusual conditions growing out of the war the abandonment of many more is even now being seriously considered. Another method of transportation which has existed from time immemorial, but which has only recently begun to have had serious consideration on the Western Hemisphere, is the highway. The economic value of a well-built high- way has been recognized in Europe since the time of the Romans, and it is as- tonishing that this system of transportatisn should have received so little con- sideration by the progressive peoples of South and North America. I regret that I am not able to speak from knowledge regarding highway construction in South America, but in North America, both Canada and the United States, we have awakened to the necessity for well constructed and well maintained highways, and both countries have entered upon an enormous program for road construction which gives promise of exceeding in volume, the great rapid growth of railroad construction which followed the Civil War in the United States. It is my belief, however, that neither the standard gauge railway nor the well constructed, paved highway will ever solve the transportation,' problem in -^ countries of the Western Hemisphere.^ The highway will aid greatly in develop- ing the sections of the country through which it passes, just as the standard railway has done, but the development will necessarily remain close to the high- way. The highway also will do much toward relieving the short-haul problem to a nearby local market, this short-haul having always heretofore been one of the sources of loss to the standard gauge railway. It must be admitted, however, that highway construction, at least the paved, hard surfaced highway, is so expensive to build of sufficient strength to stand up for years under the weight of traffic which passes over it that only fairly well settled communities can afford to make the investment. In other words, the high- way will be largely built through communities already settled and developed for the purpose of taking care of the traffic which this developed territory creates. We have then still before us the problem of some cheap method of trans- portation for sparsely settled or undeveloped stretches of territory, or for the purpose of connecting up large plantations or farms with their nearest markets or with their nearest trunk line railway. This problem has received more atten- tion in South America than in North America, and it is also being given serious consideration in such distant countries as the Philippines and South Africa where long stretches of country now have as their only means of transportation the ox-cant. These countries, confronted with the necessity for providing some bet- ter means of transportation, find it difficult to justify the building of expensive highways through long stretches of sparsely settled country, and yet must reach many points considerable distances from the few trunk line railways in the country. It is not my purpose within the very brief limits of this paper to go into the engineering problems involved, nor into the cost either of constructing or maintaining light railways, nor to compare such construction and. maintenance costs with similar costs for standard gauge railways or paved highways. It is my intention and desire simply to briefly outline the possibilities of the value and economy of this method of transportation o\er the other two systems referred to. The limitations of the standard gauge railway are so evident that it is unnecessary to refer further to them here^ The paved highway is such a new ENGINEERING AIDS TO COMMERCE 315 development in the Americas that the most experienced engineers are constantly revising their opinions and judgment regarding them, due largely of course to the advent of the automobile and the auto truck with its trailers. Highway engi- neers with wide experience will verify the fact that it is almost impossible to make in advance any road census over a particular stretch of road. The development is so new that it is difficult to judge in advance how much traffic, either passenger or freight tonnage, will be diverted to the improved highway once it is Suitt. This difficult question has been further complicated by the very rapidly increas- ing number of passenger automobiles and the ever-increasing number of automo- bile trucks with their constantly increasing tonnage capacity, and, recently, the • development of trailers for trucks, that even the most farsighted of American engineers have been compelled to throw up their hands, and mile after mile of improved highways in the United States and Canada have been completely worn out and destroyed within a very short time after their completion, due to the ^constantly increasing traffic over them. With the entry of the United States into the war, the congestion which developed upon its railways necessitated a tremendous use of the highways for military transport of all kinds, and hundreds of miles of well constructed high- ways throughout the eastern part of the United States were practically destroyed by this unexpected use to which they were subjected; and yet the value of the highway as a means of military transport was recognized as never before, and is therefore receiving very serious consideration. The highway, however, permits only of the haulage of comparatively small loads by power drawn vehicles with perhaps only a limited possible future develop- ment of the trailer and haulage in short trains behind the automobile truck itself. These trains necessarily must always be short and of limited tonnage because of the congestion, confusion and danger of accident which would occur were many long trains haule'd even if _ such a development were ever possible. There are also many other items which should be considered aside from the maintenance of the highway, namely, the large investment by individuals in motor trucks and other equipment for operation over the highway, the deprecia- tion and maintenance of such equipment, interest on the investment, cost of operat- ing, provision for housing, etc. The light railway in practically all countries in North and South America can be built and can be maintained with a smaller investment than a well paved highway. On it much longer trains can be hauled at a lower per ton mile cost. Such a railway could, as might be more advantageous, either be built alongside of and paralleling unimproved highways now existing, or, following the practice of standard gauge railways, could be built more directly from point to point without following the meanderings of the average highway. At a comparatively small expense, every plantation owner or farmer could have one or more switches with branch lines running to his barns or to his fields, and could load his products directly into the railway car either in the field or at his barn, hauling the car by means of horses, oxen or mules to the main line of the narrow gauge railway where it could be switched into the train for transportation to market. In the operation of the system, the conductor of the train could be pro- vided with the necessary bills of lading, so that proper documents could be pre- pared at each farm to cover the articles to be transported, saving to all the farmers on the route the necessity for taking their own time to transport their goods to local markets of to a standard gauge railway station for retransportation to distant markets. Trains could be run with greater or less frequency as the traffic may demand so that operating costs would be quite flexible with the traffic. It has even been suggested that in sparsely settled territories which might not warrant the ex- pense for a first-class highway, the narrow gauge railway could be used, first, for the construction of a cheaper improved highway which would be sufficient to carry light passenger traffic, and, second, the railway having been used for such construction could be used as a railway for the heavier traffic, both the railway and highway put together costing less per mile than a hard surfaced road would cost at the present time in the United States or Canada. It has been my intention merely to present this skeleton suggestion of a cheap method of transportation, realizing full well the many engineering problems in- volved in the development of such a system, among which would be better methods of laying track, various improved types of cars for different kinds of produce and freight, the question of whether the car bodies should not be of such type as they 316 SECOND PAN AMERICAN COMMERCIAL CONFERENCE could be transferred from the narrow gauge trucks onto standard gauge trucks at the standard gauge railway without the necessity for unloading from narrow gauge cars into standard gauge cars, the matter of more satisfactory locomotives or motive power for such railways, whether such railways should be privately owned and operated or owned and operated by the national government or the local community government. These questions would be beyond the limits of the time allowed, but I believe the whole question merits the very serious considera- tion of the engineers of North and South America. AERIAL WIRE ROPE CONVEYORS AS FEEDERS FOR RAILWAY AND SHIP LINES By Dr. Walter C. Kretz, M. E., John Roebling Company, New York. (Read at the Afternoon Session of Thursday, June 5) In South and Central America transportation is one of the most urgent prob- lems. There are many localities rich in mineral or timber, or, again, capable of being developed into agricultural centers which are not utilized because the product cannot be brought to market and because the workers could not be kept supplied with the necessities of life, and there are others to which access is extremely diflS- cult and costly under present conditions. The result is that the population is largely concentrated at certain points where a great proportion of it lives very poorly, while productive areas lie waste. Many of these centers are connected by trunk line railways with each other, or with seaboard, but branch lines opening up the inter- vening stretches are scarce. The reason for this is that as yet the southern conti- nent is but sparsely inhabited, and that so far, at least, the rate of increase is slow. There is not sufficient tonnage, therefore, to be moved from and to points off the main line to make standard gauge branches a paying proposition, and the prospects of developing such tonnage through speculative construction— as was done in the United States — are not sufficiently good to tempt capital. And even of those dis- tricts which have direct r^il connection to seaboard many are held back due to the great difficulty and sometimes danger of transporting freight and passengers be- tween the shore and the vessel. This is particularly true on the West Coast. That these conditions must be improved before South and Central America can be developed effectively is not open to doubt, and a discussion of one method of transportation which has proved very useful in certain cases should therefore prove of interest. This method is that of transportation by means of aerial wire rope conveyors. There are two classes of such conveyors, viz. : "Cableways" and "Tramways." Of the former there are two general types, namely, "Transporting" and "Hoisting- Transporting," and of the latter there are also two types, namely, "Single Rope" and "Double Rope." In both cableways and tramways the loads are suspended from carriers by means of appropriate devices, and these carriers are taken from one point to another free from the ground by means of wire rope. Usually the car- riers are equipped -with wheels which run on a rope stretched from tower to tower as a track, the motion being controlled by a second rope called the "traction rope," but in one type of plant the carriers are fixed directly to this traction rope which moves them along and supports them at the same time. The difference between a cableway and a tramway is that in the former the carrier — of which, with very few exceptions, only one is used — may be moved in either direction along the track cable, while in the latter the carriers — of which now there is generally quite a large number — ^travel in one direction only. Cable- ways may be so arranged that they merely transport loads between two fixed points^ — ^this being the "Transporting" type — or so that they can pick up or lower a load at any point along the run, and also carry it from point to point, this being the "Hoisting-Transporting" type. The transporting type of cableway is the cheapest form of aerial wire rope conveyor which can be built. It requires but a single track cable, a single carrier, and an endless traction rope operated by a" simple reversible engine; or, if gravity can be used as the motive power, two track cables, two carriers, and a brake- system, but no engine. A plant has been built at the Rosas Mine in Sardinia, where two carriers run on one cable, one going up while the other goes down, and the two EliGINEERING AIDS TO COMMERCE 317 being arranged to pass each other by means of a rail carried on top of each in a special manner, but this system is unusual. While the type last mentioned is, as stated, the cheapest to build and operate, it has very limited applicability, for the restriction that only one carrier can be used on one track cable necessarily results in a low capacity, except when the dis- tance is quite short — say 800 meters or less — and the contour of the ground over which the line runs is of a special nature so that the track cable can be stretched in a single span and individually large loads can be moved at high speed. As soon as the track cable must be supported at points intermediate to the two ends, the speed at which the carrier may be moved along it is cut down to a maximum of 200 meters per minute, which, of course, makes the operation quite slow. So that this type of conveyor is in general used only for specific cases, such as that of a mine on a side-hill located some hundreds of meters away from and some distance above a railway track, or for mines with a small output — of say 25 tons per day — which are located a few kilometers from the nearest loading point. On a. hoisting^transporting cableway the carriers and engine are so arranged, as previously stated, that a load may be picked up and deposited at any point along the run. This, of course, necessitates the use of at least three ropes, namely, a track-cable, an endless rope for moving the carriage back and forth, and a hoisting rope for raising and lowering the load, and an engine with two independent drums. Owing to these complications the length to which a hoisting-transporting cableway can be built is de^nitely restricted to that at which a cable of the maximum useful size, when stretched in a single span between two supports, will safely carry the loads. Of course,* the greater the sag which the track-cable has, the less the stress in it, and consequently with a large sag, or deflection, a long span could be installed, but as the sag is a percentage of the span, a heavy sag would mean ex- cessively, high end supports except under unusual conditions, and it is objectionable also, because the load has to climb a very steep grade near the towers. So that, on the whole, 400 meters is about the maximum length if loads of several tons are to be transported, and 1,000 meters could probably not be exceeded under any conditions. Hoisting-transporting cableways also are quite expensive to build, and for all these reasons they are useful only where a very large mass of material distributed over a reasonable small space is to be moved to a certain point. Stone quarries or heavily timbered areas offer good examples. In both, cableways have proved very valuable in collecting blocks of stone or logs, and moving them to railway cars on a siding running near one of the towers and under the track cable. A certain modification of the hoisting-transporting cableway is sometimes found of service. This is known as the "radial type." In plants of this nature one tower has a fixed position, but may be revolved around its vertical axis, while the other tower may be moved around the perighery of a circle having the fixed tower as a center and the span of the cable as radius. Such installations are pos- sible only where the country is fairly level. A plant of this sort has been built to handle the material of a placer gold mine, and it is quite possible that caliche could be collected more cheaply in some localities with such a cableway than with present methods. From all that has gone before, it will be seen that cableways are useful in specific cases for bringing material to a railway or to some other fixed point from contiguous territory. For long distance transportation wire rope tramiyays can often be employed to advantage. As stated before, there are- two types of tramways, the "Single Rope" and the "Double Rope." In the former an endless rope to which carriers are permanently attached at intervals, rests on sheaves located on the two sides of each of a nuniber of towers set in a straight line and as far apart as the nature of the ground and the strength of the rope will permit. At fine end the rope passes around a tension sheave, and at the other around a friction sheave, which latter is connected either to a brake if the plant is operated by gravity, or to an engine if it is operated by power. In the double rope tramway heavy fixed cables (called track cables) are stretched from tower to tower, one on each side, on which run carriages equipped with wheels, the loads being suspended from these carriages by means of appropriate carriers. The carriages are connected to a relatively light endless traction rope resting on and running over sheaves on the towers near to the two track cables. This traction rope, as in the single rope system, runs around a tension wheel at one end of the line and around a friction wheel at the other, and is controlled by a 318 SECOND PAN AMERICAN COMMERCIAL CONFERENCE brake or power as the case may be. It is' evident thkt double rope plants can be built to have a much greater capacity than single rope ones, as a large part of the dead weight is supported by the fixed track-cables, and also that, while a double rope tramway costs more to build in the first place than the other kind, the expense of upkeep is smaller, as the traction rope^-which is the one subject to the greatest wear — is lighter and the weight on the sheaves over which this rope travels is smaller. The two end-stations of wire rope tramways are known as terminals. In most cases the amount of material moved along a tramway in one direction is far greater than that going in the other, and the end station at which the majority of the loads are placed on the line is therefore known as the loading terminal, while the other is known as the discharging terminal. The side over which the majority of the loads pass and which is the one on which the carriers run from the loading to the discharging terminal is known as the loaded side, and the other as the empty or unloaded side. On very long double rope tramways it is found necessary to have intermediate anchor stations so as to keep the track-cables taut. These are usually from two to four kilometers apart. At these intermediate stations it is possible to attach additional loads to the line, but the system is somewhat compli- cated. The terminals and intermediate stations are by far' the most expensive indi- vidual items of a tramway, and hence the cost per meter becomes excessively high if these stations are too close together. Consequently, tramways of less than a kilometer in length say, or where much switching in is. to be done, are not, as a rule, paying propositions. As far as the maximum length of line, goes, v.the distance between terminals is limited by the strength of the traction rope, which rope is rarely made more thani 25 m.m. in diameter, on the double rope system, as otherwise it becomes too hicavy. It is evident from the fact that the loads are attached to the traction rope at fixed intervals, which usually run in the neighborhood of 100 meters, that the longer the line, the greater the weight which- this rope must pull. If the territory is level friction alone has to be overcome, but if there are grades the traction rope must not only pull but also lift the total mass. Consequently the length between terminals is dependent on the size of the traction rope, the weight and spacing of the loads, and the inclination of the track, and it can rarely be made to exceed 10 kilometers. It is, however, not a difficult matter to increase the total length by building several tramways end to end, each with its separate traction rope and engine equipment. The stations at which one ends and the other begins are known as intermediate terminals. The carriers can be passed from one traction rope to the other automatically at these intermediate terminals, so that attendants here are not actually necessary, although it is usual to have them. Also switching of loads in and out at these points is easily done, and a turn in the direction of the line causes no difficulty. So that the maximum length of a system of tramways of this sort is limited only t|y the question as to how far it pays to move the material which is to be handled. In double tramways the carriages are connected to the traction rope either by means of grips fixed onto the frame of the carrier and which can be attached to or detached fnom the rope at will, or by means of some device on the carrier which engages lugs permanently clamped onto the rope at fixed intervals. The -former is in general the better system, as it gives greater flexibility and also pre- serves the traction rope, for it is found that the wires of this rope ultimately break at the ends of the lugs due to the constant bending back and forth at these points. Tramways can be erected almost anywhere on land, and even out to sea in some cases ; ravines and rivers, and steep mountain slopes offer no insurmountable obstacles. Their range of capacity runs from ten to about one hundred tons per hour — ^and tramways therefore offer a mgans of mechanical transportation for ton- nages which are too small to be handled economically on a railway. They func- tion, if properly constructed, with nearly absolute safety and regularity, and the operating costs are low. The limitations of wire rope tramways are, in the first .place, that loads can be placed onto and taken off the line only at specific points, V'hich points should, for the sake of economy, be several kilometers apart, and ore further determined by the nature of the territory over which the line runs. In the second phice the speed of travel is rather low, as 185 meters per minute cannot well be exceeded. In the third place the size of individual loads which can be moved is limited. Tramways can be hvilt to carry several tons on one carrier' but in that case the plant will be much too heavy and unnecessarily expensive for ENGINEERING AIDS TO COMMERCE 3l9 lighter units. In other words, the load per carrier should be reasonably uniform, and, in most cases, will have to be one ton or less. In the fourth place, tramways must be built in a straight line, or in a line consisting of several straight sections, and each one several kilometers long. The reason for this is that while turns can be made anywhere, such angles complicate the design materially, and it is usual, therefore, to confine them to intermediate terminals, where the carriers are trans- ferred from one traction rope to another and such terminals are, as already stated, expensive, and it is not well, therefore, to multiply them. It is of the utmost importance, if satisfaction is to be obtained, that tramways be properly designed and erected. This work should be done by experts, and it is a great mistake to think that troubles are easily avoided. To mention merely a- few points, we might call attention to the following: In the first place, the height and location of towers must be carefully studied and as the material mutt usually be built on the basis of a survey it is absolutely necessary that this be accurate. A few feet of error in contours, or failure to state that certain points offer unsafe foundations, or are subject to snow-slides, etc., may cause endless difficulties. Next the class of material .to be handled must be accurately known. If the output of a mine is to be transported, for example, and an incorrect weight per cubic meter is assumed, all of the buckets will be of the wrong size. The nature of the grip is also important. A good grip must hold the load safely on every grade on the line, and if the tramway is built in sections it must automatically adjust itself to varia- tions in the diameter of the traction rope, besides having other characteristics. The width of the towers also is an item. Cases are known where during a storm empty and loaded buckets colhded and locked, and sections of the traction rope from one side were blown over and entangled with the track-cable on the other side, causing great expense and loss of time. Even such a simple thing as the shape of the saddles carrying the track cable is of moment, for on this depends to a large extent the service which the track-cable will give. These cables are destroyed partly by the rolling friction of the wheels running over them, and also by pounding on the saddles and by vibration, the effect of the latter being concentrated at a point near the supports. And so there are a number of details, all of which must be pi'operly taken into consideration if a successful plant is to be built. Probably the majority of tramways which have been put into service so far are used for the transportation of ore, as a mine located within a reasonable dis- tance of a railway offers the most ideal conditions. The material is compact and heavy, the output fairly constant, and loading at one definite point is easily accom- plished. A number of tramways have also been erected for the transportation of timber from the woods to a shipping point. These have some special features, necessitated by the fact that long logs must be handled differently from single buckets. In many instances they are very successful. So, for example, there is one in Mexico which is operated by six men and transports 75 to 100,000 board feet of lumber daily, doing the work of some hundred wagons, six hundred mules and four hundred men. Another one in what was German East Africa handles cedar logs up to 14. meters long and weighing as high as a ton each over a distance of about 9 kilometers. This line negotiates at one point a grade of 86 per cent and is built through exceedingly difficult territory. Tramways are also used to some extent for the transportation of passengers and general freight. So there is one in the Argentine Republic from the end of the railway line at Chilecito to Upulungos, a mining town 34.67 kilometers away, and 3,510 meters higher in elevation. The chief freight is ore which is sent down at the rate of 40 tons per hour, but miscellaneous supplies, machinery, water and passengers also are carried over it. This tramway, which is in nine separate sections, is at present the longest in the world. Other than as railway feeders, tramways are useful also for loading and dis- charging vessels, especially in open roadsteads where the beach is shallow, rocky or of such a nature, that it is impossible for vessels to anchor close to shore. Such installations require few and comparatively light supports, which offer no barrier to the flow of water and which are not Hkely to be injured by wind or waves. The method employed is to build a pier — which is practically a small island — out at sea beyond the breakers and in water deep enough to float., whatever vessels may .come, and then to connect this pier with the shore by means of a tramway, over which freight and passengers are carried in both directions. It seems as though the West Coast of South America should offer opportunities for the profitable application of this system. 320 SECOND PAN AMERICAN COMMERCIAL CONFERENCE From what has gone before it will be seen that aerial wire rope conveyors will solve many difficult transportation problems ; many, indeed, which can be solved in no other manner. And that they would be very useful feeders to railway systems, useful especially where the railways end at the foot of rugged mountains, as in the Argentine Republic, or run between high ranges as in many places in Chile and Peru, goes without saying. But, like every other valuable mechanical device, cableways and tramways cannot be built cheaply. Many people seem to labor under the idea that the cost per meter of a tramway should only be slightly more than the cost of four meters of wire rope of the proper size; they forget that every hundred meters or so there are two carriers with carriages and grips, that every few hundred meters is a tower, that there are anchor stations, terminals and an engine to be considered and that the expense of erecting also is frequently high. While no definite fi(gures can be given, as the variations are too wide," it is safe to say that few tramways can be installed at a cost of less than $10.00 per meter. IRRIGATION AND ENGINEERING ENTERPRISE IN LATIN AMERICA By C. W. Sutton, Consulting Engineer, New York. (Read at the Afternoon Session of Thursday, June 5.) Mr. Barrett's telegram inviting me to prepare a paper specified the above subject and the paper has, therefore, been worked out along lines aiming to co- ordinate irrigation and engineering in Latin America from a broader commercial as distinguished from a narrower technical point of view. We are chiefly interested to treat of irrigation in that quality and relationship which it has as an enterprise or business undertaking. Owing to the need of great brevity we can only attempt to develop the simplest underlying principles or to design an appropriate attitude for the situation, in Latin America. There as well as in the older tracks of human migration in Europea, Asia and Africa, the arid and semi-arid regions have constituted habitats where by means of irrigation the human race has been able to build its first enduring foundations of culture. The arid and semi-arid regions of Mexico and Peru presented to us at the time of the Conquistadores, the highest types of culture at that time shown by the American race. Some historians have pointed out that the Conquistadores, having found a highly perfected system of irrigation works and institutions, constituting the basis of material culture among the Mexicans and Peruvians, they, the Conquistadores, and their successors have done little or up to the last 20 years had done little to improve the conditions of the 16th century in these respects. We may admit the criticism of our progress in the use of irrigation so far as this criticism applies to fact as distinguished from inference. Although since the time of the Conquistadores we have developed a science of hydraulics and an art in the design of structures which did not exist even in the shadowiest suggestion at the time of the Conquest and although we have added to our tools and materials of construction innumerable new types, SfUd have widened our scales of production and consumption to a bewildering degree, yet up until the last 10 or 20 years the irrigated area of America was very little in excess of that which existed at the time of the Conquistadores. The inference has often been made both here and in Latin America that the governmental system or the political conditions were to blame. Before making that inference, however, it would be well to compare the economic and institu- tional media in which the old irrigation works operated with those in which the modern works must operate. It would be evident that the great distinction lies in the non-existence at that time_Ql a capitalist economy, as contrasted with a more and more highly complex phase of such an economy since the Conquest. It is also true, I be- lieve, that in that primitive medium supporting the old American irrigation works and institutions, the general cultural progress was 5,000 years behind the stage which the Conquistadores introduced in America. That old medium was grotesque, inert, static, monotonous. In substituting a democratic, so-called, or individualistic system of politics and business for the narrow and rigid despotisms ENGINEERING AIDS TO COMMERCE 321 of primitive America, the only criticism that can be made of Europe is that the change was too abrupt to provide for continuity of action from the one medium to the other. So that if it is true we have learned a great deal about the technology of irrigation and engineering since the time of Columbus, we have not either in Latin America or anjrwhere else in America developed to entire satisfaction a medium in which irrigation enterprises thrive under purely laissez faire policies. Our inclination to let these enterprises spring up as they can without conscious political effort to establish an appropriate institutional environment has probably been our chief error and one inherent in the first efforts to establish and de- velop vigorous individualism. We have sought to allow or invite irrigation enter- prise to create itself out of the merely technical knowledge of the engineer on the casual or local, interest of isolated enterprisers. During the last twenty years, however, this error has been recognized throughout America. Students of the question will be found on record to the effect that the problem of irrigation lies in the legal, administrative and insti- tutional phases rather than in the technological ones. Govei-nments have every- where had to intervene in these enterprises either to establish an equitab'le system of water rights and administration or to stimulate and finance the settlement of lands and the successful growing of crops. The experience of North America suggests that the fundamental troubles have originated in two mistakes; first, the construction of works in advance of a demand by those able to use profitably the costly benefits of irrigation; second, the failure to extend aid, or as I should prefer to put it, create a medium in which men of small capital could overcome initial obstacles. These mistakes or their palpable consequences have led some financiers and economists to say that irrigation was not a national problem, or that it was not an economic enterprise. Why should, in fact, the average man seeking a farm, if the average man ever does seek one these days, pay $100 an acre for an irri- gated tract in the desert when he can buy land in the humid districts nearer to the centers of the exchange of" products and amenities, for $S0 an acre ? But if it is true that in the United States where 25% of our continental area is in improved farm holdings, nearly all lying within districts where the rainfall in no month of the year falls below 4 inches, irrigation may not be a national problem, in Mexico where all over the Republic the rainfall is very capricious in seasonal distribution, and where over half the country is distinctly semi-arid or arid, and where probably not more than 10% of the area of the country can ever be made into improved farms, in Peru where the humid areas are sequestered behind one of the most formidable mountain barriers in the world, in Chile where conditions similar to those pertaining in Peru exist over one- third of the domain with the emphatic- distinction that there is not even the consolidation of a hinter-land, and in Argentina where the most attractive and extensive domains are arid or semi-arid, in these countries irrigation is distinctly a national problem. In these countries governments and business men continue to be concerned about this problem. A review of the question in America and throughout the world will show, I believe, that given the requisite physical condition, irrigation will thrive as an industry wherever land values are high and the political and institutional media are satisfactory for the life of other industries requiring capital and skill. What are the elements constituting such media? They may be stated as two principal ones; — first, a corporate habit; second, such a general environment _ as sustains the use of national and private income to produce national and private credit. If we were to point out the things which have held back irrigation enterprise in particular and engineering enterprise in general in Latin America, I believe we would indicate the lack of these two things, always of course to a relative degree. The lack of these things is of more importance in irrigation than in some other engineering enterprises only if we separate irrigation enterprise from those projects aimed to develop respective localities as a whole. Such a separa- tion, however, is not possible in business. When we create irrigation works in a previously unirrigated country, we aim to create a new community or to extend an old one to new limits, and this involves the construction of all the public utilities and works which form the paraphernalia of a completely equipped community. 322 SECXIND PAN AMERICAN COMMERCIAL CONFERENCE Regarded from the point of view of private enterprises of limited scope, this is always recognized by the enterpriser. He considers his irrigation works as part of an ensemble of capital goods going to make up a complete block of productive capital. He considers himself responsible for general administrative, social and industrial conditions controlling within the limits of his estate the use of that block of capital. When large communities are to be served and large amounts of capital employed in irrigation works alone, it has been found that the community itself must in some way make itself responsible for the social, political and industrial conditions, outside of the power of any one individual or small group of individuals to control. This means generally the employment of community credit in some form and implies even to that extent the existence of some form of corporate habit or habit of association for productive purpose. This medium in which the existence of the corporate habit and the capi- talization of income into credit are the vitalizing elements, cannot it would seem, be created by governmental fiat. They must arise as spontaneous growths of the regional economy and while this growth may be hastened or delayed by the course of. national or international politics, it cannot be independent of the de- mand for capital and of the established and slowly changing currents of trade and investment. Must we then wait for something like nature to take its course in order that irrigation and engineering enterprise may come into more active life in Latin America? I do not by any means wish to make such a statement, but only to call attention to certain limiting conditions. Within these limiting condi- tions, local and national governments and communities can do a great deal. The war has pointed out that there is no such thing as the older economists call a freely reproducable commodity. If this is true, then the relatively non-repro- ducable character of land and capital is emphatic, and conscious cooperative effort to make the most of them will be more and more requisite. Irrigation enterprise and engineering enterprise in general is concerned with the use of somebody's land and somebody's income to produce more income. In Latin America we have for example relatively indefinite extensions of land and water resources within communities receiving a certain income insufficient in itself by mere physical accumulation to pay for any important irrigation or other engineering enterprise as fast as these are required. A bank in coopera- tion with some sufficiently authorized governmental institution could capitalize this income and build the works at once, which for lack of cooperation between the bank and the government is not built. Again, where lands to be irrigated lie in such a way as to invite private construction and operation then with some advisory control on the part of the local community or government and the banking community, the issue of shares of stock could be facilitated among many local subscribers, where such issue today cannot be made because of the lack of this kind of action. From this condition of things it is but a step to a condition where Latin American governments, desiring to carry out extensive programs of public works and to create a medium in which private enterprise can be successfully operated toward the social ends desired — could, through the creation of a na- tional bank dove-tailing in with foreign banking institutions forming fiscal agencies abroad of the respective governments, create reservoirs of credit into which the little streams of local credit would combine with the bigger ones of national credit, to be redistributed to the security markets of the world with a multitude of guarantees not now existing. In resumption, it is my opinion that the chief problem in irrigation and engineering enterprise generally in Latin America, is related to a more vigorous corporate habit and some system of more active cooperation between local communities represented by their governments, and a banking institution or in- stitutions of a national or quasi-national character. Although governments can- not create a corporate habit in a community nor bring about by themselves the organization of incomes implied in investment securities, they can do a great deal to foster the natural development of these things. I hope that some sug- gestions as to ways and means may be brought out in the discussion. ENGINEERING AIDS TO COMMERCE 323 HIGHWAYS AS RAILWAY FEEDERS IN SOUTH AND CENTRAL AMERICAN COUNTRIES By Charles Whiting Baker, Consulting Engineer, New York. (Read at the Afternoon Session of Thursday, June 5) Economical transportation has the closest relation to national prosperity. No nation can be prosperous today without a well-planned and economical system of transportation routes covering its territory. There is, however, a very gen- eral misunderstanding, even in the engineering profession, of what constitutes economical transportation. It is often assumed that the more expensive a road is in first cost, the more economical it will be in handling traffic. tJntold millions have been wasted by engineers during the past half century in building transpor- tation lines which were too costly for the traffic they had to handle. Mistakes of this sort have been made both on roads built by Governments and on roads built by private enterprise. On the other hand vast wealth goes to waste annually for lack of transportation facilities and other great sums are spent in carrying on transportation that might be saved by investment in better roads. It may be well at this point, therefore, to define what is meant by economi- cal transportation. The most economical transportation route or system for a certain location is that which enables the traffic to be carried over it at the lowest total cost, including in this cost not only the direct cost of moving the goods or passengers, but the expense due to building and maintaining the roadway used. The first question in determining the most economical transportation route for a given location is what volume of traffic will pass over it? In a remote, -Sparsely populated district where only a few hundred tons a year will be carried over a road, the most economical road may be a narrow trail for pack animals if the road is in a mountain region, or a mere wheel track if the route lies across a level prairie. If a few thousand tons are to be carried it will pay to cut down the cost of its transportation by spending money to drain and grade the roadway, to give it better grades so that heavier loads can be hauled and to improve bad stretches where teams become stalled. If the volume of traffic is still greater, say for example, 10,000 to 25,000 tons per year, it may become worth while to spend money to secure a still better roadway, to give it a hard surface, so that it can be used in wet weather and so that the resistance to the movement of vehicles over it will be less. For a road of still heavier traffic, a still more costly road may be economical and when the traffic becomes sufficient in volume, a railway will be a cheaper means of transportation than any highway. Finally the railway which handles a heavy traffic say of several million tons a year can have a much larger amount expended on its construction to advantage than a branch-lane railway which carries only a thin traffic. These principles have long been applied by engineers engaged in the loca- tion of railways. A distinguished American engineer, Mr. E. H. McHenry, many years ago defined an engineer as a man who makes a dollar earn the most in- terest. He referred to the formulas which he has worked out by which an engi- neer after determining the volume of traffic which a projected railway would handle computed how much the company building the railway could afford to spend during construction in cutting down the grades of the railway. Exactly the same principles apply in determining the economy of any trans- portation line, be it a highway, a railway, or a waterway. The question that should always be asked is what road or route or method of transport will give the lowest cost of transportation per ton-mile? It is true that an exact detefftiination is never possible, for the amount of traffic to be handled can never be certainly known, and other quantities also have to be estimated; but a determination sufficiently close to be a valuable practical guide can be made by the engineer who is thoroughly competent, and some attempt at solution should always be made. Without it grave errors ate very apt to occur and great sums of money will be wasted. Computing the Cost of Transportation. In order that this matter may be clearly understood the method of com- puting the cost of transportation over a given road is here illustrated. The- quanti- ties to be estimated are the following: 324 SECOND PAN AMERICAN COMMERCIAL CONFERENCE 1. The probable average volume of traffic over the^ roads in tons per year. If the traffic varies on different parts of the road, then determine its average density in terms of the ton-miles transported per year per mile of road. This is done of course by dividing the ton-miles of transportation over the entire road in a year by the length of the road in miles. 2. The average cost per mile of building the road. 3. The rate of interest on the money expended in the road's construction. 4. The average annual cost of repairs on the road to keep it in good condition. 5. The probable life of the road, that is, the number of years before the road will require complete or partial reconstruction. 6. The cost of such reconstruction and how much value will be left at that time of the original construction. 7. The cost of transporting goods over the road per ton-mile. The use of these quantities in the computation may be best illustrated by an example. Suppose a road is to be built from a railway station to a town 20 miles distant, passing through another town 10 miles from the railway. Suppose the town 20 miles away has 3000 tons of freight a year to send out and requires 1000 tons brought in and the town 10 miles away ships out 2000 tons and brings in 1000. Then the total traffic over the road in ton miles per annum will be 4000 X 20=80,000 ton miles 3000 X 10=30,000 ton miles total traffic 110,000 ton m.iles and the ton miles per year per mile of road will be : 110,000-^20=5500. Assume further that a road is built at a cost of $2000 per mile for con- struction, that the average cost per year for maintenance is $200, that the rate of interest on the money to build the road is 6 per cent., that the road will require rebuilding at the end of 10 years, but at that time, there will still be left $1000 of the amount originally expended in the value of right of way, grading, culverts, etc. Then the annual expense per mile of road will be: Interest on $2000 at 6 per cent $120. Annual cost for repairs 200. Annual sinking fund charge to offset the depreciation 76. $396 Dividing this quantity by 5500, the tons passing over this mile of road in a year, we have : $396-^-5500=7.2 cents as the cost per ton mile chargeable to the use of the road for every ton passing over the road. If this road will enable freight to be hauled over it at an average cost of 30 cents per ton mile, the total cost of transportation will be 37.2 cents per ton mile. The method thus illustrated is general in application and may be used for any type of transportation, either the common road, the railway or the river, or even for special types of transportation such as the wire ropeway. By this simple method of computation it may be quickly determined whether an expensive roadway, requiring large investment for construction, but saving in annual cost of repairs and in the cost of hauling over the road will really be a gain economically. The local conditions is an unsettled country are taken into account in this method of computation. This in a prosperous and wealthy country like many parts of the United States, money can be borrowed by states or counties for road con- struction at 5 per cent. In remote regions where capital is scarce on the other hand, the rate of interest may rise to 10 per cent or more. This will greatly in- crease the annual charges for interest and depreciation on the road, and will thus make a less costly road the more economical road for a given amount of traffic than would be the case over most of the United States. This condition deserves further emphasis, for one of the very common errors where money for highway construction is spent under the control of politicians is to concentrate the expenditure on a few miles of costly roads in the vicinity of large cities and ignore the need of roads over the country at large. ENGINEERINQ AIDS TO COMMERCE 325 Furthermore, as a result of the great war and the unsettled conditions which have followed, the whole world faces a scarcity of capital for investment. In every country of the world, even the most wealthy, the amount of money which can be raised or borrowed for building and maintaining highways is far below what is needed. The limited amount of money which can be devoted to this pur- pose ought to be spent on the roads where it will yield the greatest return in reduc- ing the total cost of transportation. In many countries of Central and South America the greatest public benefit will often be attained by building a large mileage of cheap and primitive roads to open up districts now without transportation facilities rather than by concentrating expenditure on a small mileage of costly roads in the regions of dense population, solving the problem whether on a given route a highway or a railway will furnish the cheapest transportation. The method of computation which is above explained is applicable also to solving the problem whether on a given route a highway or a railway will furnish the cheapest transportation. There is of course no room for doubt that where the volume of traffic is sufficient, the railway can haul freight far below the cost of highway transport. Freight hauling on even the most improved type of highway costs usually, under conditions prevailing in the United States, from 20 cents to SO cents per ton-mile. On main line railways in the United States, where freight is moved in cars of 30 tons to 100 tons capacity, assembled in trains carrying 2000 to 5000 tons of paying freight, the railway can move traffic at a cost sometimes fallinjg as low as one-fifth of a cent per ton mile, and in general not a hundredth part of the cost of hauling over a highway. But the cost of hauling by rail rapidly increases as the volume of traffic falls off. Even under the favorable conditions in the United StateSj branch line railways of thin traffic do not pay, and the building of such lines has practically ceased. In other American countries where capital is scarce and interest rates are high, where coal for locomotive fuel has to be transported across the ocean, and where steel and machinery of all sorts for the building and maintenance of a railway must be brought from foreign lands, the building of low cost railways to handle light traffic economically is far more difficult than in the United States. Highways as Feeders to Railways. The railway needs a heavy volume of traffic in order to prosper. It can obtain such traffic if there are facilities for bringing traffic to and from the rail- way stati6ns. This is so well recognized that prominent railway officers in the United States have taken a leading part in the good roads movement there. The improvement of highways during the past twenty years in the United States has been of great value to the railways in increasing the amount of business brought to them. Further than this, a network of public highways to economically collect a country's products and economically distribute manufactured goods is as essential to a country's prosperity as is its railway system. The remarkable growth and prosperity of the United States in the last century would have been impossible except for the complete network of public roads which was extended over the entire country as fast as its settlement progressed. It is true that a large portion of these roads are inadequate- to the present traffic upon them, but at the time they were built they were all that the country could afford. Compared with the highways of any other country, except the long settled countries of Europe, whose road system is the product of centuries, the United States road system repre- sented a great advance. The roads of the past century in the United States were built, however, under such knowledge (or lack of knowledge) as the pioneer days afforded. The technical knowledge of the engineer was seldom brought into requisition. In fact it has only been within very recent years that it come to be understood how im- portant it is to economical road construction and maintenance to utilize the skill and experience of the highway engineer. This does not apply merely to the con- struction of roads having a permanent surface pavement. Even in the location and construction of very primitive highways the services of an engineer should be utilized. 326 SECOND PAN AMERICAN COMMERCIAL CONFERENCE It -is little realized of what great importance to the future welfare of a country is the proper location of its transportation routes. In the older sections of the United States east of the Appalachian Mountains, there is no doubt that millions of dollars are spent annually for transportation over highways which would be saved if these highways had been originally located with more favor- able grades. The pioneers who originally located these roads in the wilderness did so with little knowledge of the country through which they were passing and they carried roads over steep hills when they might have gone around. Once the road was located and the country built up the cost of changes was very great. The Most Useful Roads Radiate From Railway Stations. Turning now to the sort of roads suitable for railway feeders in other countries of America, it should be emphasized at the start that all highways should be considered as feeders to railways. It is not only the main roads which radiate from a railway station over which goods are brought to and from the railway, but the entire network that serves this purpose. It may well be emphasized here, too, that this is the proper economic function of the highway in a country's transportation system. Only in the most densely populated and wealthy sections of the United States and for handling special limited classes of traffic can the highway compete with the railway as an avenue for cheap transportation. If an entirely new country were to be provided with an economical transportation system, therefore, the network of highways should radiate from the railway station. Selection of Economic Highzvay is a Local Problem. Another fact which deserves special emphasis is that the highway problem necessarily must be a local problem; that is to say, the proper type of highway to build is absolutely dependent upon the local conditions — the climate, the rainfall, the character of traffic, the available funds, all influence materially the character of the highway to be built. Before briefly discussing the types of roadway adapted to speciiic conditions, it may be well to point out some of the general conditions which make highway construction in Central and South American countries quite different from the problem as presented in the United States. The enormous amount of money required to grid-iron a well settled and wealthy country with a modern road system is staggering. The United States with all its wealth and resources, has only made a small beginning in rebuilding its system of highways on modern lines adopted to the traffic which now has to be handled. The probabilities are that it will take fully half a cetnury to effect such a reconstruction of its present highway system as is now believed to be necessary. Twenty-five years ago,, when the era of good road building began in the United States, it was generally considered that a mile TJf good road could be built for about $5000. The coming of the automobile revolutionized highway con- ditions, multiplied the cost of construction two or three times, and increased in an equal proportion the annual cost of maintenance. The motor truck, Tor freight transportation on highways, has again revolutionized the highway construction engineer's problem. All this, together with the rising scale of prices due to war conditions, has made the cost of a first-class road in the eastern United States at the present time from $30,000 to $40,000 or more per mile. Only a small beginning has been made in the United States in building expensive roads of this class. Many wealthy and densely populated States of the Union still have no roads with any other surface than the natural earth. The problem in most countries of Central and South America is to make whatever sura is appropriated for road construction cover as large a territory as possible. In most of these countries such large areas are still unprovided with roads of any sort that it is better in general to extend the network with even very crude types of roads, rather than spend large amounts of money on the improve- ment of short stretches of highway close to the large cities. Even the poorest road is better than no road at all. A mistake that has oftin been made by highway engineers is the building of much rhore expensive roads than the country which the roads penetrate can afford to build and to maintaih. There was excuse for this action on the part of highway engineers up to a quarter of a century ago. Prior to that time very little attention had been paid by engineers to any other type of road than the ENGINEERING AIDS TO COMMERCE 327 standard broken-stone macadam highway. It was not supposed that the technical knowledge and skill of an engineer could be of any service in bettering the con- dition of roads built with the ordinary local materials. Since that time a great deal has been done in this field. It is now well recognized by engineers that an expensive road surface should only be laid down where the volume of traffic will justify it and where the money to build and to maintain it can be provided. The gravel road, the sand-clay road, and the road drag are some of the developments that have taken place during the past quarter century which have done much to effect vast improvements in the condition of ordinary highways. . Cost of Coal, Steel and Machiriery. In the United States there are many places where a heavy volume of traffic is flowing to a railway line over a considerable distance where the construction of a branch-line railway would effect more economical transportation than the use of even the best class of highway. This condition is materially changed in the countries south of the United States by the high cost of locomotive fuel, of steel and of machinery, and the long distance from manufacturers where repairs can be obtained. These conditions make it much more expensive to build and to operate a light-traffic railway line in these countries than in the United States. These conditions also affect the use of certain machinery in highway con- struction. Many of the power-operated machines used in the United States in roadbuilding operations would be of doubtful value in distant countries where fuel is expensive and difficult to obtain and where a breakdown of a machine in the wilderness may mean months of delay before a duplicate part can be pro- cured. Nevertheless, the use of such machines should be carefully investigated. No matter how cheap hand labor may be (and it is rapidly becoming more costly the world over) steam power, gasoline power or animal power costs only a trifle compared with the power exerted by human muscles and its work is far more rapid. Climatic Conditions. One very favorable feature for highway construction applying to nearly all work in South America is the absence of severe frost. This removes one of the chief difficulties that road builders in the northern portion of the United States have to contend with. It is a common saying that the greatest problem of the highway engineer is drainage. This is especially true in countries where frost prevails but it is hardly less important where rainfall is exceptionally heavy and the soil washes readily. The constant erosion of the roadway surface and of the side ditches by flowing water makes the drainage problem one of the first magnitude. In swampy sec- tions the pioneer roadbuilder in the United States has longi used the corduroy road, made of straight sections of small tree trunks laid side by side to bridge over the soft earth. In its use in tropical countries the attack by insects of wood used in construction must be considered. It will only be feasible to use such a foundation where the moisture is constant enough to protect the' wooden sub- structure from attack. The attack of wooden structures by insects makes very difficult in many sections also the cheap and durable wooden bridges so largely used in the United States on country roads. The use of steel structures is also objectionable where everything must be brought from distant countries and where regular painting to preserve from corrosion is likely to be neglected. Cement is also costly so that concrete will be used sparingly. The road engineer will resort to the use of stone arches wherever the material can be obtained locally and the span is not too great. For longer spans, reinforced concrete and light suspension structures promise the greatest economy. Earth Roads. About nine-tenths of the public highways of the United States have no sur- facing whatever other than the natural soil of the country through which they are built. It will be readily agreed, therefore, that in the grid-ironing of South Ameri- can countries with a network of public highways the earth road must long con- tinue to be the main reliance. The problem is, what can be done to lower the cost of construction and maintenance of these earth roads and make them more economi- cal for traffic? The answer to this question is, first, to locate the road originally so that it will not only have favorable grades for traffic but for drainage. The last is as important as the first. It will often be better to adopt a ridge location 328 SECOND PAN AMERICAN COMMERCIAL CONFERENCE rather than a valley location for a main highway in a country of very heavy rainfall in order to avoid the heavy maintenance cost inevitable if the road has to take the drainage of a large area on its upper side. In districts of heavy rainfall, also, provision for culverts and side drains is as important as the location of the road. Where money must be saved in the construction of a road, as is nearly always the case, it can usuUy best be done by decreasing its width. Reference is now made, of course, to country highways in districts of sparse traffic and not to roads in the vicinity of cities where, as is well known, the prevalence of high- speed automobile traffic makes necessary an increase in width over standards com- monly in force. For the country highway, especially in a district of heavy rainfall, it is best to make the traveled portion of the highway very narrow, give is a high crown and maintain this crown in condition and by frequent use of the road drag elimi- nate ruts as fast as they are formed. It is not too much to say that the road drag, where it has been systematically and intelligently used, has revolutionized the condition of the earth roads, over a large part of the United States. Its extreme simplicity is one of its great recommendations. It can be made anywhere at a trifling cost from local material. It may be well to go further and to say that an ordinary earth road, with proper provision for drainage, which is well maintained with a road drag is a better and more economical road for traffic than a costly waterbound macadam road which has been allowed to go to pieces from wear and weather and which is found too expensive to maintain. Mistakes in Promoting Macadam Roads. In the early days of the good roads movement in the United States, very few of those who were active in the campaign for good roads construction realized what a burden was to be imposed upon the public by the maintenance of the roads that were built. Few understand that the waterbound macadam road, which was the standard of good road construction for many years and in many places is still being built, not only cost from $5,000 to $10,000 a mile to build, but would require a perpetual expense of from $500 to $1,000 per mile per annum to maintain. This is now so well established by wide experience that there should be no further mistakes on this score. A highway should be given a hard surface, of course, wherever the traffic justifies it and wherever the hard surface once built can be perpetually maintained. If this cannot be done, however, then the best thing to do is to build and maintain a good earth road. Roads for Arid Districts. In the arid and semi-arid regions of South America as in large areas of the United States where similar conditions prevail, the road builders problem is com- paratively simple. There are vast areas of level plains where the natural soil will supporl the wheels of the ordinary freighting wagon, and where almost no preparation is required to make a road good enough for the small amount of traffic that will use it. There are other regions of course where drifting sands or alkali flats, which become impassable when infrequent drains occur, give special problems for the roadmaker to solve. What has been said above with reference to the use of very narrow roadways does not apply of course to conditions such as these. Surfacing for Earth Roads. Where the volume of traffic and the other conditions are such as to make it worth while to consider the use of some firmer material than the natural earth for the surface of a road, the first resort will of course be to gravel, provided of course that gravel is obtainable within practical hauling distance of the road to be surfaced. There are all grades of gravel. The ideal gravel for road building has a mixture of coarse and fine particles with enough loam or sand to fill the interstices and make an impervious surface when the road is compacted by traffic. The poorer gravels have a large percentage of voids and the soil which fills these may act as lubricant of the gravel particles allowing them to move on each other so that the road crust may be broken through by heavy loads. Whether or not it is worth while to incur the cost of surfacing a road with gravel may be determined by such a computation as has already been described. A good earth road, well maintained in a favorable climate, may serve a very con- siderable traffic for a long time before it will pay to apply gravel. On the other ENGINEERING AIDS TO COMMERCE 329 hand an earth road in a sticky clay which becomes a quagmire at certain seasons of the year, and where a good road gravel is within easy reach should be sur- faced when its traffic is much smaller than in the preceding case. It is safe to adopt a gravel road very much sooner than it would be safes to go to a broken stone macadam road, for the gravel road will stand neglect much better than a broken stone road and it can be maintained under moderate traffic at much less expense. The Sand Clay Road, There are occasional localities where gravel is not obtainable at reasonable expense and where a road may be surfaced with a mixture of sand and clay with very satisfactory results. This road too, like the gravel road, may be maintained by use of the road drag, which greatly reduces the cost of keeping the road in order, and also makes it much more favorable for use by traffic. Ample informa- tion upon this type of road is furnished in the standard text-books on highway building and maintenance. It is merely desired to point out here the especial applicability of this type of roadway to the conditions in South and Central America where economy in first cost is essential for the reasons already set forth. Economic Haulage Over Feeder Highways. The problem of economic road construction and maintenance cannot be suc- cessfully solved without a thorough knowledge of the various methods of haulage over the completed highways. The road engineer must know in advance whether he is building a highway for pack animals, for use by wagons, for passenger automobiles or for freight transporting motor trucks.* Only the best and most expensive type of hard surfaced roadway is suitable for motor truck use. A type of roadway somewhat less expensive is required for satisfactory use by ordinary passenger automobiles the year round. The earth road, however, at all times of the year in an arid climate and in dry weather in a humid climate can be traveled readily by passenger automobiles. The gravel and sand-clay roads, when properly maintained are among the most satis- factory types of roads for pleasure use. ^ There are probably few places at the present time in South and Central America where the volume of traffic moved over a country highway i^ sufficient to justify the use of heavy motor trucks, with the building of the roads which they require. Even under the favorable conditions in the United States where the prices of gasoline and supplies are comparatively low and where the question of repairs is easily taken care of, the expense of carrying freight by motor under commercial conditions on the best class of roads averages 15 to 30 cents or even more per ton per mile. This cost is greatly exceeded where the tonnage to be moved is seasonal in its character, so that the trucks have to lie idle a con- siderable part of the year. Under pioneer conditions in regions where good roads are non-existent haulage with draft animals is still in most cases cheaper than the use of motor trucks. The older method, too, has the advantage of simplicity and adaptability to the use of the local labor obtainable. There may, of course, be local conditions where the intensive traffic of a mill or a warehouse or the general conditions of traffic around a large town or city may justify the use of motor trucks. On the country feeder lines to railways, which are chiefly here considered however, there are few cases where trucks will be as economical as the use of animal power. Hauling Large Loads. It is well to point out in this connection that for economic haulage the attempt should always be made to handle as large loads as the traffic conditions and the roadway will justify. An investigation by the United States Department of Agriculture some years ago showed that farm products were being hauled to market at much lower cost per ton per mile in the pioneer unsettled regions of the Rocky Mountain and Pacific States where very few good roads exist, than they were in the long-settled regions of the East where there are plenty of good, well-maintained roads. The reason for this was that in the E^st hauling is almost always done with a team of only two animals, whereas in the pioneer districts of the West, where hauling was done over long distances and carried on as a business, large wagons carrying several tons load and hauled by six to ten draft animals were in common use. 332 SECOND PAN AMERICAN COMMERCTAL CONFERENCE languages has, no doubt; had an effect exactly contrary to that original thought that brought about the organization of the Academy. If a certain industry requires a certain tool for the specific use and this tool is invented to meet that need, that tool is going to have a name which will at least be accepted where it is made and by the purchasers who become familiar with it. In course of time, the idea of the tool or the need for it will reach distant centers and a similar tool will be de- veloped, and perhaps a totally different name will be applied. If, when this tool is invented, the Royal Academy should, after consultation with competent men, decide on the acceptance of the corresponding word, not only the tool itself but the idea and its use would be immediately distributed throughout the world in such a way as to be of value to those who read. If the Academy refuses to accept the word the result is that a different one will be used in each industrial center and in course of time as words multiply the use of dialects become common and that is exactly the condition which is encountered as regards modern tools throughout the Spanish speaking world. The tendency then is that the Royal Academy should become the repository of the old dead forms of speech which would in many instances sink into oblivion were they not clung to so persistently and tenaciously by the academicians, who have been accused more than once of being a retarding influence in the growth of the scientific and industrial education of their people. Another contributory factor in the use of varied technical terms is that throughout Latin American there has been an enormous investment of foreign capital in those countries, this capital being used for the beneficial purpose of building up the industry and developing the economic status of the regions where they have located. However, the industries being new, it Tvas difficult to secure skilled men in the vicinity of the work to take charge of the equipment and ma- chines and operate them. A French engineer has, for example, been placed in charge ' of a certain smelter in a particular mining camp. Very few of the local persons might be familiar with the various machinery that goes into a smelter and they ask the French superintendent, who, possibly, being ignorant of Spanish pei^ haps explains the word in French and this word is immediately Spanishized by his listeners, the result being a strange rare word not found in any dictionary nor acceptable anywhere on earth except where that particular French superintendent is employed. A hundred kilometers away there may be another smelter in charge of an English speaking person, and thfey immediately proceed to manufacture their own vocabulary based on English forms because the modern equipment may not be mentioned in the Spanish dictionary. Regardless of what the attitude of the Royal Academy has been in times past, it is a fact that they are largely responsible for the comparative poverty of their language in technical terms, and they are largely responsible for the condition that a given machine may have one name in Coruna, an entirely different one in Mexico or Buenos Aires, and yet another in Chile or Peru. There have been technical dictionaries prepared in Spanish, but unfortunately those with which the speaker has come in contact have been prepared by foreigners utterly out of touch with the specific nomenclature in Spain, or the various countries of Spanish speech, and the result of these efforts has been a disillusion. The speaker has had considerable experience with translators from English to Spanish and from Spanish to English, and he has yet to see the translation of an article of any length, or book, by any person that had not been subjected to criticism by others of Spanish speech to the effect that the translator had committed many grievious errors in the use of colloquialisms, provincialism, anglicisms, gallicisms, and almost every other kind of ism of which one might be accused while really feeling that he was innocent. During the last yearone of the most important corporations in the American industrial field attempted 'the translation of their catalogue from English to Spanish. Their representatives live in almost every important commercial center of the world, and practically every representative of the company in foreign cities is well educated, not only generally, but specifically as regards his own field, and certainly should understand the vocabulary which is used jor the product which he sells. The translation of the technical words representing the products of this great corporation was placed in the hands of several agents in Spanish speaking countries, and there was a conference of these men for the final comparison of terras. Words which were in common use and acceptance on the west coast of South America were in many cases utterly unknown in Spain and of very doubtful meaning on the east coast of South America._ The reverse was likewise true, and in one particular instance, a material which is exported from four or five of the ENGINEERING AIDS TO COMMERCE 333 great industrial countries, and is commercially known to jfactically every citizen, has at least a half a dozen names in South America, and each representative of this corporation was quite unwilling to admit the use of any word in the catalogue except those which they had found to be of common use among the people where they resided. The above statement consists almost conclusively of adverse criticism which would in no sense be justified should it be unaccompanied with some suggestions that might lead us to a clear understanding and closer intellectual relations. It is indeed impossible that intensive commercial or industrial relations be carried on between persons or peoples who cannot understand each other's minds. It is to a great measure due to these conditions that so many complaints occur in international trading. It is, therefore, suggested that through the -good offices of the Pan American Union that each of the Governments whose people are represented in this conference be asked to select with reasonable care an engineer allied with their own National University, and thoroughly versed in the technical literature and the pustom house terminology of their own country, preferably one which is likewise fa- miliar with one or two other tongues, for the purpose of clarifying many doubtful points. The engineers would no doubt be glad to consult industrials in their own vicin- ity regarding the technical use of words or the local names of things. There could be one central office or secretaryship agreed upon and communication by corre- spondence established. It is not expected that there would be any expense in con- nection with such an unofficial organization, and there is no doubt that much good could be accomplished thereby. It is suggested further that in view of the fact that Spain is not represented in this Conference, but is nevertheless the country of greatest population among those of Spanish speech, that a recognized Spanish engineer be also asked to lend his aid. After the choice of words it would seem desirable that each of the National Universities represented by their engineer agree to make use of that word as expressing the particular thought or idea or thing concerned. In order that the results of such correspondence be made known among engineers it would be desirable that they be published in a leading technical paper in order that all other engineers might learn the result of the correspondence of the unofficial committee and make other things known should they be adverse to the decisions of J:he committee. There is no doubt in the speaker's mind that the result of a choice of words in this manner would have a considerable influence with the Royal Academy, and should the dictionary of the Spanish language be lacking in the corresponding word, and should the word apparently have the sup- port of those who are most apt to use it, it might reasonably be inferred that it would be incorporated in the current dictionaries very promptly. There would be perhaps an insurmountable difficulty in finding an engineer in each country competent to express the proper information regarding all technical words, but it would be expected that he would consult the persons most authorized in each particular branch, and that he would also consult and make use of lexicons. It is hoped that this Conference will not adjourn without hearing an ex- pression from the General Director of the Pan American Union to use his good offices for the establishment of some means of inter-communication with engineers and custom house officers for the purpose of arriving at some common under- standing regarding the use of technical words. An agreement regarding the use of a certain word by such authorities would, of course, have little value unless at the time of the agreement the custom house authorities and other Government officials be inclined to accept the word which might be selected or to admit by suitable proclamation the word chosen as indicative of the things or articles referred to, even though those things or articles be legally defined in some other terminology in the Arancel Aduanera or tariff lists. THE PAN AMERICAN ENGINEER By Wm. Louis Dunne, Export Service Engineer, The Deselektro Company, Washington, D. C. Commerce, it has been said, follows the flag; but it is the pioneering spirit of the engineering profession that points the way and first raises the flag. Pan- Americanism in the engineer's life is simply_ a matter of habit, and the North American engineer has been as much at home in the mountain mines and railroads 334 SECOND PAN AMERICAN COMMERCIAL CONFERENCE of Colombia, Chile, P«ru and other of the South American countries as he has been in the Rockies of the United States. No less acquainted with the works of the technical men from the north are the peoples of the cities of Buenos Aires, Rio Janeiro, Sao Paulo, Lima, Santiago, Havana, Mexico and other populated centers. The older civilization of the great" peoples antedating the advent of the conquistadores was predominantly that of the engineer, as was found by those who came to the lands of the Incas and the Aztecs. Ancient works in irrigation, in mines and in architecture are found in all of the Latin-American countries and where found are marvels in execution. Canal systems centuries old arouse the admiration of the modern engineer from whatever nation he may come. Whatever of difficulty there may be on the part of the visiting banker, manufacturer or merchant to readily reach a plane of common thought with his South American friend, between the engineers of North and South America there is no long preliminary to acquaintance and friendship, for they meet on the basis of fellow technicians and mutual appreciation. The South American sees in the industrial development in the United States the fruition of his day dreams for his own country and the North American finds in the southlands every opportunity to spend his lifetime in accomplishment. The outstanding feature of the relationship 'between North and South Americans in the engineering professions is found in the fact that many hundreds of the technically trained men of the South American republics are products of American colleges. Our institutions like the Universities of California, Texas, Wisconsin, Pennsylvania, Utah, Michigan and Columbia are alma mater to hun- dreds of civil engineers from the southern nations of Pan-America, and in the mining districts of the southern continent there will be hardly an operation that will not number among its technical officers graduates of Colorado, Cornell, Massa- chusetts, Lehigh, Georgia Tech. Mackey School of Mines or equally known techni- cal institutions in the United States. The Latin American excells in technical design. Particularly in the field of hydraulics the opportunity for practice has been wide and there are many works from Mexico to Chile that have brought deserved commendation from world authorities. In the field of industrial engineering the South American engineer in recent years has been working toward high ideals, and it is the rule rather than the exception that in all of the countries the most modern ideas and equipment find place in new industries, when entirely in the hands of the native engineers of those countries. The engineer, whether of North America or South America, is a potent force in Pan-American relations. In South America, more than in the United States, the engineering profession furnishes to the nations not only the leaders in thought, but leaders in action, and it is by no means unusual for the Argentine, Brazilian, Chilean, Peruvian, Cuban and Central American engineer to enter the field of diplomacy and politics, and the better understanding between all of the countries of Pan America is due in large part to the broad views cultivated by the engineer-statesmen in many of the Latin American countries, for the engineer's training embraces enough of the principles of international equity — ^in viewing all things from the practical standpoint — with practical political economy, to make him remain apart from the narrowness of parochial thought. To those who, like our bankers, and manufacturers, are interested largely in trade development I could make no better suggestion than that they consider that future relations between Pan-American countries rests largely upon the en- gineering profession. There are something like nine hunded young South and Central Americans now in technical schools in the United States and Qinada. They are in the colleges being trained as civil, mechanical, electrical, chemical and agricultural engineers. In a few years they will be tTie deciding factors in indus- trial and commercial development in their countries. No more patriotic American thing could be done than to make opportunity for these young men to secure their first practical training in the United States. The cumulative results are obvious. I am sure that you will find that Director General Barrett and the Pan American Union will readily assist any effort to bring to you the opportunity to acquaint your product to the young engineer. ENGINEERING AIDS TO COMMERCE 335 UNKING TOGETHER THE TWO CONTINENTS WITH A HIGHWAY By Dr. S. M. Johnson^ Director of the Bankhead National Highway, Washington, D. C. (Read at the Afternoon Session of Friday, June 6) Last October a company of gentlemen of the Managing Board of the "Banlc- head National Highway" were guests of the Republic of Mexico andHhe Chamber of Commerce of Juarez, Chihuahua, at a banquet at Juarez, just across the Inter- national boundary at El Paso, Texas. The business which took us to El Paso was the establishment of a National Highway beginning at Washington, traversing the south, passing through El Paso and reaching the Pacific Ocean at San Diego, California. At the banquet the representative of the Government of Mexico stated that his government together with the Governors of the several interested States were cooperating to continue the highway which we were establishing, from Juarez to Mexico City and that considerable portions of the road were already in con- dition for use by rapid-transit vehicles. As one of the Directors of the Bankhead National Highway, I desire to say that I am sure that the utmost encouragement would be given in this country to an organized effort to extend this highway from Mexico City to South America, thus linking together the two Continents, the twenty-one republics and the people of the western hemisphere. The Bankhead Highway is now definitely located from Washington to El Paso, a distance of about 2400 miles. Automobiles are now using every mile of this road every day, and by far the greater part of it can be used with ease every day in the year, the remaining parts being dirt roads which are hard to travel after a rain. The dirt-road sections are now being improved by the concentration upon them of Federal, State and county road-construction and within two years it is probable that one may leave Washington in an automobile and travel thus to El Paso over this national highway reaching El Paso in advance of the passenger who leaves Washington at the same time and makes the journey by railway. Within a short time, permanent sign-posts will be placed along this road throughout its entire length. These will be of concrete. The marking will be done by the National Highway Marking Association, of Washington, D. C, which is establishing a uniform system of permanent highway marking throughout the United States. In addition to this line of travel, there are several other lines reaching from Portland, Maine ; Montreal and Toronto, Canada ; Chicago ; Winnipeg and Van- couver, Canada, to El Paso, all of which are now in usable condition for rapid- transit vehicles. These main-lines may be reached by automobiles from every one of the more than 3000 counties in the United States. On these highways the people of the United States are now using for business and pleasure over 6,000,000 automobiles and a half-million motor-trucks. This number is being increased so rapidly that the manufacturers cannot keep up with the demand. The United States has now entered on a program of road construction exceeding in magnitude anything of the kind known to history. At this moment 22,000 motor trucks are being shipped by the federal government to the 48 states for exclusive use on the highways ; while shipment will soon be made of many thousand of trailers to go with the trucks. The machinery bought with the proceeds of our Liberty Bonds is to be brought back from Europe to be used in building roads at home; roads to serve the ends of peace. With rapid-transit highways covering in one vast network the entire national domain, it takes no stretch of the imagination to see the day when the entire population of the United States can step into its automobiles at a given signal and without crowding enjoy a national joy-ride. At this present moment this could be done in the State of Iowa, which has millions of inhabitants ; and one-third of the population of the United States could now be transported at one time from one place to another in privately owned autornobiles. A similar development of the rapid-transit highway and the use thereon of the rapid-transit vehicle throughout the other republics of America is inevitable. The linking together of the highway systems of North and South America would therefore seem to be most desirable ; an undertaking of vast importance ; in the 336 SECOND PAN AMEEaCAN COMMEROAL CONFERENCE same category with the opening up of lines of transit on the sea and in the air. The enterprise is worthy of immediate consideration. As the wonderful panorama of South American scenery, including the world's greatest water-fall, and the many objects of deepest interest shown at this Conference, where thrown on the screen, I could not help asking myself "Why were all these things fashioned by a benevolent Creator, if they were not to be seen?" And I came to the conclusion that one of the greatest assets of the American Republics was the attractions they offered to those who desire to travel and see the wonderful and beautiful things of the earth traveling freely in the open. The idea of touring-trips from the United States to South American coun- tries by parties traveling by automobile may seem wildly visionary. Such trips will become reality just as soon as the highways are put in usable condition. Such long-radius trips are now commonplace in the United States. On July 1st, if present plans do not miscarry, the War Department of the United States will send two companies, consisting of 209 men, traveling_ with equipment overland by motor-truck and other motor vehicles over the "Lincoln Highway" from Washington to San Francisco. The itinerary calls for the com- pletion of the trip in 47 days. Motion-pictures will be taken from air-planes of the start, probably from the "White House," Washington, and _ along the route, and careful records will be made of road-conditions, costs, etc. This army-maneuver on land corresponds to the practice of the Atlantic fleet last spring in Cuban waters and to the mapping of air-plane routes across the continent and across the Atlantic ocean. It emphasizes the concern of this Government in the development of con- tinuous highways and the use of motor-driven vehicles in long-distance travel. It is the direct outgrowth of the breakdown of railway transportation from Chicago, Detroit and Buffalo to the Atlantic seaports under war-demands. This led to the use of the motor-truck on the highways. In the convoy movement by motor- truck from the points named and in the period from January to November 11, 1918, the Motor Transport Corps of the War Department used 32,403 vehicles and transported a cargo-weight of 6,350,730 pounds of war material to the coast. The truck-train transcontinental maneuver films will be shown throughout the world. The Associated Press will tell the story. The fact will be made known to America that such trips are feasible. This undertaking should stimulate interest and effort in the proposal to link the two Americas together in a new bond of international amity by a highway. Since the State of New Mexico, which I have the honor to represent at this Conference, has a citizenship about equally divided between Spanish-speaking and English-speaking people, I desire to call your attention to the fact that we in my State have succeeded in doing in our small way, what the Pan American Union is trying to do in a large way, that is, to bring about good understanding, kindly relations and cooperation in the work of advancing civilization among the repre- sentatives of the latin and the anglo-saxon types. For seventy three years these two types have lived together in amity in New Mexico. Hand in hand they have erected the structure of a noble statehood. They share in equal terms the re- sponsibilities and honors of leadership. Our two United States Senators are of the anglo-saxon stock; our Representative in the Congress and our Governor are Spanish-Americans. All New Mexico is proud to have at the head of our State our present Governor, O. A. Larrazolo, who was born in Chihuahua of Castilian stock, a man of great ability and strength of character, leading the State to a foremost position in the improvement of the schools and highways, in providing for returning soldiers and in everything that uplifts. New Mexico, therefore, looking back over Ti years of life, work and pro- gress sends greetings to all the other commonwealths, expressing the hope that the same kindly spirit which binds the latin and the anglo-saxon types together may bind together the representatives of these two types throughout the length and breadth of America. We are sure that the beneficent results which have fol- lowed from our cooperation here will follow that larger cooperation which the Pan American Union is bringing to pass. ENGINEERING AIDS TO COMMERCE 337 THE MISSISSIPPI VALLEY WATERWAYS AND THE LATIN AMERICAN TRADE By James E. Smith of St. Louis, Psesident of the Mississippi Valley Waterways Association. I am pleased to respond to Mr. Barrett's request, as the people whom I represent are anxious to increase their trade relations with our neighbors in the countries south of us. That portion of the United States known as the Mississippi Valley is the most fertile, the most productive, and the most prosperous portion of our country. It contains more than one-half of our country's entire population. It produces more than two-thirds of our exportable products, and in turn, it consumes a large proportion of the products which are imported from the countries with which we trade. In the past both our exports and imports have been largely handled through our Atlantic ports, greatly to the disadvantage of our people. Having been brought to a realization of the handicap with which we have been burdened, we are now preparing to handle our Central and South American shipments through the port of New Orleans, which is our natural outlet to the sea as we have water com- munication with that port, which is more than 700 miles nearer the Panama Canal than is New York. The Mississippi Valley contains the greatest system of natural waterways in the, known world. The Mississippi River and its tributaries embrace 16,000 miles of navigable rivers. Through the neglect of our national Government, water trans- portation has been allowed to be driven from these natural channels of commerce, but during the past few years there has been a general demand for its restoration, and it is now being re-established. Water transportation has already been revived between St. Louis and New Orleans, affording us low water rates between these points, and we can now deliver the products of the Mississippi Valley to the countries south of us more quickly and at much lower freight rates than we have been able to secure in the past, and in turn, our people can now obtaiii the products of those countries at lower cosl by shipping them direct to our Mississippi Valley markets by the all- water route by way of the port of New Orleans. Arrangements are also being made for regular steamship service between the port of New Orleans and the ports of Central and South America to the end that we may deliver the products of the Mississippi Valley at reasonable freight rates to all of the countries lying south of the United States. The merchants and manufacturers of the numerous important cities located in the Mississippi Valley are looking forward to the establishment of closer and more friendly relations with the business interests of Central and South America, and let us hope that these expectations may be fully realized in the near future. A GLANCE AT PROGRESS ON THE PAN AMERICAN RAILWAY By W. a. Reid, Trade Adviser, Pan American Union. From 1910 to 1914 about 156 additional miles of track were added to the Pan American Railway. Very few miles of road that will form links in the inter- continental system have been constructed since the latter date, at which time hos- tilities in Europe checked the usual flow of capital from that part of the world to Latin American enterprises. The progress to date is approximately as follows: The distance of 26 miles separating the Mexican road at Mariscal from tapping the Guatemalan road at Ay'utla has been reduced to about two miles, or a gain of 24 miles. The road building from La Union, Salvador, toward the Guatemalan rail- ways has progressed approximately 100 miles. The road being constructed from Cuzco, Peru, northward toward Santa Ana makes only about three miles a year, and work was suspended for a number of months after the curtailment of Peruvian activity in 1914. Completed, about IS miles. The gap of 177 miles between the southern end of the Bolivian road and railhead at La Quiaca, Argentina, has been decreased by 60 miles. 338 SECOND PAN AMERICAN COMMERCIAL CONFERENCE Branch of Chiriqui R. R., Panama, from David to La Concepcion, 18 miles. Constructed from 1910 to 1918 217 miles, which, deducted from 3,672, leaves to be constructed 3,455 miles. The distances follow : New York to Buenos Aires 10,116 miles New York to Buenos Aires constructed i 6,661 New York to Buenos Aires to be constructed 3,455 {New York to Panama Sections) New York to Mexico City (standard gauge) 3,026 miles built Mexico City to Guatemala 843 Total standard gauge track 3,869 From the border of Guatemala, near Ayutia, to Panama the distance given is 1,184 miles; of this distance the reports in the Pan American Union show that there are in operation approximately 632 miles of railways. All of these roads are of narrow gauge, those in Guatemala, Salvador and Honduras having 3-foot gauge. Nicaragua and Costa Rica have the 3-foot 6-inch gauge. The approximate numfcer of miles of railway needed as connecting links in Central America to afford continuous rail from New York to Panama is 552. In order to run a standard gauge train from New York to Panama it would be necessary to b^uild 1,184 miles of standard gauge track. The addition of a third rail to the 632 miles of narrow gauge road now in operation would not make a track suitable for standard gauge traffic, as on most of the narrow gauge roads a very light rail is used, which answers for the light freight and passenger cars in operation. Summary. — Standard gauge track New York to Guatemalan border, 3,869 miles in use; narrow gauge track between Guatemalan border and Panama, 632 miles in use; approximate distance of new roads needed to fill links, 552 miles. In addition to the railroad mileage actually constructed the following ex- tensions have been planned or started: The extension in Ecuador southward from Huigra, a station on the Guaya- quil and Quito Railway, to Cuenca, 93 miles, has been started. Between Tupiza, Bolivia, and La Quiaca, Argentina, a distance of 60 miles, a French firm is engaged in construction work in preparing roadbed. The English company which held a concession for building between Atocha and Tupiza, Bolivia, about 60 miles, was compelled to abandon work on account of shortage of cap- ital, etc. Considerable progress has been made in other railway construction in So'uth America during the last decade, all of which has a bearing on the progress of the Pan American Railway. One may now travel by rail from Lake Titicaca to Puerto Montt in the far south of Chile ; the traveler may also go over railways from Lake Titicaca to Rio de Janeiro via the Chilean Longitudinal, the Trans-Andine, and the several lines connecting Montevideo and Buenos Aires with the railroads of Brazil. SANITATION 339 SANITATION TflE EFFECT OF SANITATION IN DECREASING MUNICIPAL DEATH RATES By Georce a. Soper, Ph.D. (New York), Major, Sanitary CorpSj U. S. A. (Read at the Afternoon Session of Thursday, June 5, 1919.) If we take up a consideration of the ways in which communicable diseases of different types have been combatted, we will note that there have been three general fields of effort. It is necessary to consider them all in order that the field occupied by sanitation may be viewed in its proper relations. Sanitation Compared With Other Health Measures. — The first may be called the field of personal precautions. Whether the effort is made in the city or coun- try, in the tropics or temperate zones, in highly civilized countries or in the remote parts of the world, the essential elements of these precautions are the same. The reason for this is that they are based on purely personal instinct — purely personal experience — and little else. •• Every one exercises certain precautions, consciously or unconsciously. They are a part of the education which we get in the school of experience. We learn to avoid the presence of the infectious sick and such common causes of illness as undue exposure, excessive fatigue and improper food. The second field of effort in the control of disease is board of health work. The intention here is for the government, national, state and municipal, to exercise a wholesome supervision over the public health. This is done by the enforcement of laws and ordinances which relate to the collection of statistical and other data to indicate the birth and death rates and the prevalence of infectious and other causes of death. To attain their greatest value vital statistics should record the cases as well as the deaths, but we have not yet reached that point of development where the importance of this matter is generally appreciated. Board of health work includes, beside the collection, tabulation, interpreta- tion and publication of statistical facts relating to population, sickness and death, the supervision of food and drugs, the regulation of quarantine, the performance of vaccination and inoculation for the prevention gf disease, the distribution of curative sera, and the sanitary education of the public through bulletins, lectures, reports and other methods of publicity. Education as a means of reducing the death rates is one of the most promising of all public health measures, but so far it is in its infancy. The third great field of effort is that of sanitation. Sanitation is mentioned last here although it is, in point of fact, the most important. It is pre-eminent for a number of reasons. By sanitation is meant that branch of systematic health work which requires plant and a force to maintain it. Examples are works for the procurement and distribution of wholesome drinking water, the collection and disposal of liquid sewage and the gathering and final disposition of kitchen waste, ashes and other discarded material. These are obviously sanitary undertakings but the list of improvements which go to make a city sanitary does not end here. Broad, well paved market places ; suitable play grounds ; bright, well ventilated school houses ; in short, whatever the city has in the way of plant which goes to prevent the in- juries to health which result from too densely segregated masses of people might properly be comprised under the head of sanitation; but in every-day parlance they are not so included. Yielding to works of sanitation are not only typhoid,~dysentery and other diarrheal diseases, but many other forms of sickness. To introduce a public supply of pure water in place of a polluted one, or to build a sewerage system in a town which has had no good way of disposing of excrement, is to reduce the prevalence of nearly every disease from which men suffer and die. Nothing that can be done is so certain to lessen the death rate. It would be interesting to know exactly the extent to which sanitation decreases municipal death rates, but the effect cannot be stated in numerical figures. Municipalities which are so backward as not to possess good sanitary works are usually too backward to know how much preventable sickness and death they have. And unless we know the sickness and death rates before and after the introduction of a sanitary improvement it is impossible to say precisely how great the benefit is. 340 SECOND PAN AMERICAN COMMERCIAL CONFERENCE Sanitary works possess a number of advantages as compared with other measures for the prevention of disease. For one thing, they no not require as high a degree of skill in their administration as do boards of health. For another, they have an advantage over personal precautions in not being individual in applica- tion and uncoordinated in action. Sanitary works have a wholesale application. A water supply which is pure is wholesome for every person who has occasion to use it. The street that is well paved and kept clean is of advantage to every one who travels over it by vehicle or foot. And sanitary works do not hide their merits under a bushel. Their good effects are in glain sight — a constant recommendation of the good sense of those who are responsible for the welfare of the community. How the Sanitary Development of the Modern City Has Been Accomplished. —To trace the progress of sanitation in Europe and North America is an instruc- tive undertaking, for this history contains many useful lessons. In both continents a deliberate intention exists to regulate the growth of cities along lines which make for order, convenience, comfort, safety, health and beauty. From the first sanitation has been a feature of many American cities. Sanitation, although long delayed, when it came, came like a revolution to the continental cities of Europe. The beginnings of municipal sanitation everywhere are due to European initiative. Public water supplies, as we know them today, and sewers to ^arry away the most offensive and dangerous part of a city's filth, are a recent European contrivance. Street lighting, good pavements, adequate' transportation, tenement house reforms, the construction of parks and playgrounds, the regulation of vehicular travel and street paving and cleaning having been developed more recently. The American city which ignores foreign practice in these directions fails to take account of experience which can save it a great deal of money. The sanitary regeneration which European cities have experienced hais had no counterpart in the United States. There has been no necessity for such revolutionary changes. American cities were small when the world began to learn that sanitation was an indispensable feature of every municipality. There was never such overcrowding, such slums to clean, such foci of filth to clear up and eliminate, as existed abroad hali a century ago. In 1860 there were only sixteen cities in the United States with a population of 50,000 or more, as against one hundred and forty-eight in Europe. The significant feature of municipal growth in America as compared with that in Europe has been less" the reconstruction of cities already large than the construction of a great number of small cities. Hundreds of these have passed and are now passing through their periods of infancy, youth and adolescence toward a maturity which foreigh cities attained long ago. Their sanitation takes place as they grow. The first important sanitary improvement to be made in the growing village is the public water supply. This leads to the use of water closets and, to accommo- date the drainage from these, cess-pools are built. The privies, the original pro- vision for the disposal of excrement, are then eliminated. Street pavements are presently considered and the cleaning of the pavement and the collection of house refuse by municipal effort followed. At first garbage is collected by scavengers at the private expense of the householders ; later it is done at public expense. The young city may now be said to have passed through its period of infancy and entered that of youth. A sewerage system is built later in the city's growth. During this period the houses are gradually built closer to one another and in a more permanent form of construction until they stand in a compact mass. More attention is given now to pavements and to the cleaning of them. Parks are laid out, lighting is improved, ordinances are passed regulating many sanitary matters. The city has now reached its period of adolescence. The period of maturity, that is, the period in which civic responsibility begins fully to express itself, come last. The regulation of building construction, the con- trol of traffic and the adoption of farsighted plans to insure public health and safety are often taken up at this time. They should have been considered at a much earlier period. It is always easier to carry out a plan which has been made before-hand than one which has had to be prepared after permanent constructions and settled procedures have for some time been in existence. How to Get Better Sanitation. — It is instructive to observe how often it is that a community owes its sanitary improvements to its business men. It might be supposed that the principles of sanitation were more within the grasp of profes- SANITATION 341 sional men than of those whose attention was chiefly occupied with manufacture and trade and that doctors and lawyers and ministers would be foremost to see that the health and welfare of the public were properly looked after. This is not, however, always the fact. There is no disposition to belittle the help which pro- fessional men can give, but an experience in public work which covers many years and extends over many cities and states shows that when it comes to municipal improvements it is the commercial element which usually exercises both the initiating and sustaining influence. The explanation of this is simple enough. The general subject of sanitation is not so complicated as to be the exclusive province of any class or profession. Certainly the need of sanitation and the benefits of it can be understood by every intelligent person. Business men are accustomed to weigh returns against ex- penditures and readily appreciate that sanitation is a sound investment. Moreover they are accustomed to action and when they get together to obtain action for the public welfare they are apt to get it. Often the important thing to know is what to do in order to improve the sanitation of a city. Why is the death rate high? What should be done to reduce it under the particular circumstances which exist? In answering these questions many technical and financial details may have to be considered. This is properly the work of experts. An unprejudiced expert should be called on to make a report based on a study of the local situation and on a knowledge of what other cities have done and are doing under similar circumstances. This report should serve as a program behind which the solid common sense of the municipality can array itself. When a city needs a health program, as every city does, the best way to get it is for the business men to demand it of the municipal administration through their commercial organizations. If the municipality does not possess the talent for the work an expert should be called in from outside. In many cases commercial organizations have themselves employed experts to make investigations and reports to serve as a guide to the citizens in demanding what is proper. The question is often asked, what can a city afford to spend for sanitation? The answer is that it can afford to spend whatever is necessary in order to make it healthy. If it is already healthy it need spend but little ; if it is unhealthy it must of course spend more. A city, like a man, must have health if it is fully to realize its possibilities. Epidemics paralyze business and a high death rate is a reflection upon the good business sense of a community. In many cases investments for sanitation sTiould be looked upon as insurance policies. Every city and every village ought to have a program of development; a plan to build to, a settled scheme of construction to refer details to. This program should be prepared early in order to keep the growth properly' proportioned and prevent the excessive development of some relatively unimportant features at the sacrifice of the essential. Paramount in such a scheme should be suitable pro- visions for health. Although a considerable investment of capital has to be put into sanitary works, the maintenance charges are not excessive as compared with the adminis- trative costs of hand labor which is often used as a substitute to accomplish the same result. It must not be expected, however, that good sanitary works can be built or that they can be effectively operated without care. Skill and attention in design and construction and operation are indispensable to the best results. Although no attempt will be made here to show what large investments are made by every up-to-date city for the purposes of sanitation, it may interest some to know what share of the total yearly outlay is devoted to this purpose by the cities of the United States. Among the 219 cities of 30,000 or more population in the United States for every ten dollars put out each year for all purposes of administrative effort one dollar and ten cents on the average is expended for health and sanitation. The amount varies among the different cities according to the natural advantages of the site with reference to water supply, drainage, kind of population and commercial and industrial conditions, and according to the foresight and business ability with which the work is planned and carried out. The percentage of the total yearly expenditure which is devoted to health and sanitation sometimes runs as high as twice the figure stated and occasionally falls to about one-half of it. The size of the city does not affect the per cent. 342 S-ECOND PAN AMERICAN COMMERaAL CONFERENCE THE POPULATION AND SANITAKY PROGRESS OF SOUTH AND CEN- TRAL AMERICA AND THE WEST INDIES By Frederick L. Hoffman, Third Vice President and Statistician, the Prudential Insurance Company of America, Newark, N. J. (Read at the Afternoon Session of Thursday, June S) The present address is in part an amplification of a previous discussion on the "Significance of a Declining Death Rate," originally read before the National Conference on Race Betterment, Battle Creek, Mich., January, 1914. Few seem to realize the truly tremendous significance of mortality changes or the effect of a declining death rate on population growth and development. Combining all the statistics available for South and Central America and the West Indies, it would appear that the population has increased from approximately 52,000,000 in 1886 to 89,000,000 in 1915, an actual increase of 37,000,000, equivalent to 70.2 per cent. The annual rate of increase, however, for this period is not quite 2% per cent, or equivalent to an actual annual population growth of about 1,227,000. If this rate of increase should continue for the next 50 years, there would be by 1965, on the assumption of a geometrical ratio, a maximum' population of 223,500,000, or, on a much more conservative arithmetical ration, a minimum population of 150,500,000. In neither of these estimates is proper allowance made for the affect of a further and material decline in the general death rate, which, if taken into account, would seem to justify the assumption that by 1965 the probable population of South and Central America and the West Indies will not be less than 200,000,000. Such a population growth must necessarily imply truly tremendous oppor- tunities for trade and commercial intercourse. With the improvement in transpor- tation facilities the enormous natural resources of this vast area will become avail- able and will naturally offer a further inducement to population growth by immi- gration. It is a reasonable assumption that in less than 25 years our foreign trade with th^ countries to the south of us will be far in excess of the present amount, v,ihich is out of all proportion to the opportunities for a highly developed com- mercial intercourse. The recent growth in population is in a large measure the result of favorable mortality changes. Combining the available mortality statistics for 22 cities of South and Central America and the West Indies, with a population of not quite 6,000,000 in 1913, it appears that the general death rate of this registration area has progressively declined from 24.5 per thousand of population in 1904 to 23.2 in 1909, and to 20.1 in 1914. DIuring 1915 the rate was only 19.1 per thousand. During the last two or three years the rate has been somewhat higher, but returns for all the communities concerned are not as yet available. The mortality rates, though relatively high, must nevertheless be considered most favorable in view of the fact that the cities under consideration include a large proportion of Indian, negro and mixed-blood population, subject to a higher death rate than the native white element. In the southern States of the United States, for illustration, the death rate of the white element is 13.0 per thousand, and of the colored 19.0. The sanitary progress of practically all the principal cities of South and Central America and the West Indies is therefore most gratifying evidence of an aroused interest in sanitary reforms. The possibilities of a further reduction are, however, extremely encouraging. The earlier excess was largely in consequence of a high death rate from small pox, yellow fever and malaria and its complications. Modern sanitary reform^ concerns itself not only with acute infectious diseases, particularly water-born or insect-born, but also with the larger question of physical examination and the medical supervision of children and young persons as best illustrated by the remarkable work of Dr. Louis Shapiro in Costa Rica. Before enlarging upon the details for particular localities, attention may be directed to the available mortality records of some 20 states of Central and South America and the West Indies, though more or less incomplete for the earlier years. The average death rate of this group, which in 1915 had an aggregate population of 30,000,000, decreased from 30.7 per 1,000 of population in 1897 to 27.2 in 1902, and 26.0 in 1907. The most remarkable decline, however, occurred during the last ten years, when the rate was reduced to 20.0 in 1912 and to 18.8 in 1915. Granting that the returns are merely an approximation, they are for too large an area and too vast an a,ggregate of population not to be, in the main, sufficient for the present SANITATION 343 purpose. The fact must not be overlooked that even for the United States we have trustworthy mortality data for only two-thirds of the total population, and the returns are chiefly for very recent years. The progress in the registration of vital statistics, their accuracy and scientific classification, is commendable evidence of the high degree of attained civilization in the countries and cities to the south of us. The area of South and Central America and the West Indies is approxi- mately 8,268,000 square miles, against not quite 3,000,000 square miles for the United States and not quite 4,000,000 square miles for Canada and Newfoundland. The approximate density of population in 1915 was about 11 persons per square mile for South and Central America and the West Indies, against 2.1 for Canada and 33.8 for the United States. It, however, is a safe assumption that a much larger area in South and Central America and the West Indies is fit or useful for human habitation than is the case with the waste spaces of northern Canada, reaching prac- tically to the Pole. It is furthermore a self-evident conclusion that the area under consideration in the countries to the south of us has vastly greater potential pos- sibilities for future growth and development, all inter-dependent with a healthy population growth. Further sanitary progress in South and Central America and the West Indies must enormously enhance the productive capacity of these countries, which as yet have only commenced to contribute to the world's increasing need for adequate food supplies. If, for illustration, the population of such an island as Jamaica were entirely rid of malaria and related diseases, of ankylostomiasis, syphilis and yaws, the productive capacity of that most beautiful island in the West Indies would be enormously increased. In Costa Rica, under the direction of Dr. Shapiro and the International Health Board, there has been a veritable physical regeneration of the people due to the gradual elimination of ankylostomiasis, malaria and kindred diseases. What is imperatively needed is more information and such investigations as those of the Hfirvard School of Tropical Medicine, whose report of a First Expedition to South America was issued in 1913, js a favorable indication of substantial progress. First and last, however, the health problem of South and Central America and the West Indies concerns malaria, and it is to be hoped that the resolution adopted by the Second Pan American Scientific Con- gress, reading that : The Second Pan American Scientific Congress, recognizing that the education of the public in the elementary facts of malaria is of the utmost importance, requests that The. American Republics inaugurate a well-considered plan of malaria eradication based upon the recognition of the principle that the disease is preventable to a much larger degree than has thus far been achieved, will not be lost sight of, but made the corner-stone of a new and active health propaganda throughout the countries concerned. During the year 1916 the average death rate for the United States registration area was 14.0 per thousand of popu- lation. For the city of New York for the same year the death rate was 13.9 per thousand; for Buenos Aires the death rate was 14.6 per thousand during the year 1916, against a rate of 22.1 in 1895. The city of La Plata decreased its mortality from 18.0 in 1911 to 15.6 in 1916. The city of Rosario Santa Fe reduced its death rate from 28.9 in 1900 to 18.9 in 1915. In Brazil exceptional progress has been made, but the outlook for the future is particularly encouraging, due to the coop- eration of the Brazilian government with the International Health Board of the Rockefeller Foundation. Such reports as those on "The Sanitary Conditions and Diseases Prevailing in Manaos, North Brazil," by H. Wolferstan Thomas, of the Liverpool School of Tropical Medicine, are evidence of sound scientific methods which must needs lead to promising results. Superficial surveys and observations like those, for illustration, contained in the Rice Expedition to Brazil, are more of a hindrance than a help. A splendid report has been published on the Sanitary Campaign in Brazil, by Dr. Theophilo Torres, Vice President of the National Academy of Medicine, but unfortunately no translation in English thereof is at present available. The same conclusion applies to the Memoirs of the Institute of Oswaldo Cruz, which are available to the student of tropical medicine, but which at the same time reflect the enormous sanitary and health progress of Brazil as the result of strictly scientific investigations not surpassed by the re- search work of any corresponding institute in the world. Amng the many illus- trations of the useful work of the Institute of Oswaldo Cruz, proper mention may be made of a scientific investigation by two physicians, based upon personal inquiry 344 SECOND PAN AMERICAN COMMERCIAL CONFERENCE in the states of Bahia, Pernambuco, Piauhi and Goiaz. The authors, for illustra- tion, in discussing leprosy make the statement that this disease is particularly prevalent in the southern part of Goiaz. Valuable observations and statistics on leprosy are included in the reports of Dr. Mario da Silva Nazareth, made to the sanitary authorities of Rio de Janeiro. What is true of Brazil is more or less true of every other state of South and Central America, although, unfortunately, the official evidence is rarely accessible to American investigators. The government of Argentina has, for illustration, made public some extremely valuable researches on Malaria Prophylaxis, and on the results of local efforts to eradicate malaria in the most affected areas. If these reports -were available in English they w^ould be most useful to the American Malaria Committee and other students of a health problem of the first importance. The sanitary progress of Brazil is reflected in the material improvement in the health of the principal cities. In the city of Bahia there has been a decrease in the death rate from 34.5 per thousand in 1897 to 13.6 in 191S. For the city of Bello Horizonte, the death rate declined from 22.3 per thousand in 1908 to 16.8 in 1916. The city of Manaos reports a decline from 3S.4 in 1903 to only 15.3 in 1907, and for the city of Pelotas the reduction is reported from 22.5 in 1899 to 18.3 in 1917. The most extraordinary decrease in the death rate, however, occurred in the city of Rio de Janeiro, which in the period 1859-63 had an average mortality of 58.2 per thousand of population. The rate declined to 30.5 during 1884-88; to only 20.8 during 1914-17, and to as low as 18.8 during the year 1916. Such evidences of progress are not the result of chance, or of natural causes, but they are the consequence of a deliberate policy of sanitary reform and sanitary control. Other illustrations could be given for practically all the states and cities of South and Central America, including the West Indies; but additional details would unduly enlarge the present discussion. There are, of course, exceptions, for there remain. a number of localities with decidedly unsatisfactory health condi- tions. It is, however, a foregone conclusion that in a few more years these also will be under reasonable control. Reference need only be made to the fact that the city of Havana in 1898 experienced a death rate of 89.1 per thousand of popu- lation, against a rate of 18.8 per thousand during 1916, and that the city of Guayaquil experienced a decline in the death rate from 57.7 in 1897 to 42.1 in 1911 and 34.7 in 1917. It is sincerely to be hoped that the investigations which are now being made by a special commission of the International Health Board of the Rockefeller Foundation, of which Major General Gorgas is the chairman, will result in far-reaching benefits to the localities in the southern portion of the Western Hemisphere which are still afHicted with yellow fever, plague and malaria fever in a pernicious form. In view of the actual achievements in sanitary progress it is safe to forecast a further material reduction in the general death rate. Such a reduction if the birth rate should not suffer a corresponding decline would result in a further increase in population, with the practical certainty that the previous forecast of population growth would be exceeded during the next fifty years. The people of the northern portion of the Western Hemisphere have therefore good reason for a much more active interest in all that concerns the social and economic process of South and Central America and the West Indies. The Pan American Union, the Pan American Scientific Congress, as well as other gatherings must needs prove helpful in the direction of a broadening understanding of the problems of mutual concern to all the countries of the Western Hemisphere. But the most promising field is the vast domain of commerce which ministers to the needs not v,only of tlie people of the Western Hemisphere but of the world. It is therefore particularly encouraging to meet with such a whole-hearted spirit of cooperation and intelligent coordination on the part of the Pan American Commercial Con- gress, which properly brings this gathering within the romance of commerce as one of the unthought-of solutions of world problems of an earlier day. The romantic history of Venice, of Florence, of the Hanseatic League, does not reveal a more forcible illustration of progress in the arts of peace than does this gathering of representatives of commerce and industry, held together by the tie of the Pan American Union, the very thought and conception of which reflects the greater wisdom and higher altruism of the statesmen and leaders of today than the men of a great historic past. COMMERCIAL INTELLIGENCE AND PUBLICITY 345 COMMERCIAL INTELLIGENCE AND PUBLICITY LATIN AMERICA AND THE ASSOCIATED PRESS By F. B. Noyes, PSesident Associated Press. (Read at the Morning Session of Friday, June 6) In order that you may understand the new relation that has recently been .created between the press of North, South and Central America I should begin, I think, by explaining to you what the Associated Press really is and what it conceives its functions to be. The Associated Press is a mutual cooperative association of something more than 1100 newspapers formed to supply its members, and its members only, with a truthful, clean, comprehensive, non-partisan — and this in its broadest sense — report of the news of the world as expeditiously as is compatible with accuracy and as economically as possible. The Association has no capital stock and is forbidden by its Charter to make or distribute profits. In the extent and importance &f . its operations it is probably the most notable cooperative effort now functioning. The organization maintains its own bureaus or correspondents throughout the world in addition to its exchange arrangements with Renter and Havas with their allied agencies and the Canadian Press. It is probably the largest private customer of the cable and telegraphic lines and expends millions of dollars annually in collecting and distributing its news service. Unlike many news gathering concerns of other countries It is in no sense a governmental agency. Since its organization it has refused to handle "propaganda" matter, being firm in the belief that its function was properly limited to supplying a news service to its members that should be without bias so far as that is humanly possible. This sort of an organization appealed to some of the most important South American newspapers and they informed us frankly of their desire to receive our service. This led to a very careful study on our part of the news situation in South and Central America which eventuated in an invitation from the Asso- ciated Press to a number of leading newspapers in South and Central America — not to buy, our service, not to become customers or clients but to join us as full members of our cooperative organization. It is a matter of pride to the Associated Press that this invitation to our fellowship was instantly accepted and that we now list among our members the most important journals in the countries to the South of the United States, for we have had- members in Mexico and Cuba for years. The news service began on January 1st of this year and I am firm in the belief that this exchange of true, ungarbled and unbiased news is more effectual in cultivating and maintaining the relations of friendship and affection that should exist between the two continents of this hemisphere than all the prop- aganda that could be fed out by all the publicity agents that could be put to work. The bases of our relationship with our new members are those of equality, of mutual respect, of full confidence. Our South American members know that the news reports sent them will be straight news with no ulterior purpose and we have the same belief as to the news coming North. From what I have told, you, I am sure that it must be clear that the in- terest of the Associated Press in the specific commercial projects that this con- ference is discussing must be purely platonic. Any aid to general buying and selling that this fellowship of the news- papers of North and South America brings will be only a by-product of a re- lation that had no such object in mind as an incentive to its creation. I may with propriety say, however, that the growth in commerce that you are planning for must be built on the same bases as those I have stated as the 346 SECOND PAN AMERICAN COMMERCTAL CONFERENCE foundation stones of the relations of our new and old members — equality, mutual respect, full confidence. While our organization will therefore be only a systematic onlooker in the progress you seek to accomplish the work we are doing is of immense im- portance to you. We are making peoples know each other, know each other's habits, know each other's likes and dislikes, virtues and foibles. Why, it is only within the last few weeks that the people of this country have learned through the Associated Press that foot ball is an international sport in South America. This may seem supremely unimportant but it is not. It is very important, for it goes to the vitals of a mutual understanding and sympathy. On Wednesday a cable came from Brazil saying that ai foot ball team from Bethlehem, Pa., had accepted an invitation to visit Brazilian cities and that it was reported that the United States Football Association had under considera- tion an invitation to send a team to the next South American Championship tournament. Believe me, when we play foot ball together we are making progress. The beginning of the flow of our news from North to South and from South to North carried with it, of course, a great strengthening of our Bureaus in South America and is now, having a collateral effect in causing a more ener- getic collection of news from Spain and Portugal, in the news of which coun- tries our new members are especially interested. I am afraid that I have not been able to add much to the sum of human knowledge in what I have said to you. I would have you know that the North American members of the Asso- ciated Press enthusiastically welcome to the ranks of the organization the new members from the South. We greatly prize the friendships that are growing up from this association, we are proud that these high types of journalists of South America are fellow members and we hope and believe that they too re- gard us as friends and comrades. I feel sure that I am speaking for our South American as well as the North American members in saying that we wish you Godspeed' in your work. We hope with you for an unceasing stream of ships carrying cargo and passengers both North and South. For us, we will see to it that a neverending stream of news of the world's happenings, its accomplishments and its failings shall flow between the two continents so that our peoples shall know each other better, feeling sure that as they know each other they will like each other more and more. PAN AMERICAN JOURNAUSM AS THE TORCH OF PROGRESS By Herbert S. Houston, Editor, Spanish Edition of The World's Work. (Read at the Evening Session of Thursday, June 5) When General Bartoleme Mitre reestablished the independence of Argentina he found a newspaper to aid in safeguarding and perpetuating that independence, and he gave to it a title that clearly heralded its mission — "La Nacion." That was no casual matter, something that just happened to happen, but a logical, almost an essential result in a war for liberty. Out of the fire and smoke of battle came the torch that was to light the way to democratic progress. So it has been through- out the world, ever since the Greek scholars bore the new learning into Western Europe, where it came with the Spanish and English and French to these western continents. This learning was the light and leaven of democracy and its spread has been by the printed page. When the time came that these western democracies were ready for coopera- tion it was a newspaper editor who had the vision to grasp that fact and aid in establishing the Pan American Union. Nor was it a mere accident that this torch-bearer was a newspaper man for that was and is the place of the newspaper man in the march of progress. James G. Blaine of The Kennebec Journal, true to the high obligation of his profession, simply translated his vision into a definite COMMERCIAL INTELLIGENCE AND PUBLICITY 347 agency of service and forth-with the Pan American principle of inter-relationship among these republics of the West was embodied in fact. And that principle, as the present Director General of the Pan American Union has often pointed out, is the creative idea that animates the organization we now see taking form as the crowning triumph of democracy— the League of Nations. In Paris, a few days ago, the President of the United States at a dinner in honor of the President- elect of Brazil referred to these relations, that have been steadily growing in this hemisphere, as the impulse which has led to a sort of mutual pledge on the part of all the self-governing nations of the world that they will be friends to each other, not only, but that they will take pains to secure each other's safety and independence and territorial integrity. To this sentiment the President of Brazil gave generous and hearty response, expressing complete agreement with the view outlined by President Wilson. And as if to confirm the soundness of the view and to throw into dramatic relief the "solidarity of interest" between the republics of the two continents, to which President Pessoa so eloquently referred, the newspapers of this country, in their capacity as torches of business carried advertisements offering to North American investors $10,000,000 in bonds of Rio de Janeiro in the same issues that carried the news of the addresses of the two Presidents in Paris. The news was a beacon of understanding while the advertising was a beacon of financial light and accom- modation, the bond issue being quickly oversubscribed; and both beacons were so luminous vvith genuine Pan Americanism that they may even have enlightened that Brazilian journalist who had recently returned to Rio de Janeiro from this country, bearing strange tales of the militaristic spirit of the United States and of the hostile purposes that were to be carried out against the republics south of Panama. Seldorn has exuberant fancy been so speedily overtaken, as it was in this case, by the blazing torch of fact. And by a fine stroke of journalistic justice the press which had spread the dark rumors, likewise spread the illuminating truth and before it the rumors scattered as mist before the sun. Its great mission as torch bearer of progress, the Press fulfills by rendering three wholly distinct but related services. It is the torch of news, of opinion and of advertising. But its basic service to the world is as the torch of news. Through and by this torch the light of understanding is transmitted by which men may be guided in their relations with each other, with government, with business — in fact, with the whole range of human activities. In the words of Scripture, "if this light be darkness then how great is that darkness." Here is the fundamental duty of the journalist. He must see to it that the torch of news is lighted with truth. Otherwise the torch spreads the darkness of error and falsehood, leading to misunderstanding and even to serious disagreements and wars. We have seen in the past five years to what length German propaganda could go in swinging throughout the two Americas the smoking and murky torch of falsehood. That object lesson has been so overwhelming, even endangering our liberties, that it should require nothing more to convince us that darkness is always spread by falsehood and to persuade us that our deliverance from German darkness should cause us to cleave forever to the light of truth. But alas, the human memory is short and human resolution is often weak — for even as we meet here in Wash- ington there are not wanting signs that German propaganda, in even a more furtive and subtle way than ever before, is beginning to reappear. Surely this presents to honest Pan American journalism a clear mandate and obligation. In our hands is the torch of democratic liberty in this hemisphere. We must hold it aloft and send from it such searching rays that no lurking propaganda that would divide these republics by falsehood and misunderstanding can go undetected. And I should like to urge upon this Pan American Commercial Congress that it adopt the following plan and give it immediate effect. "Believing that Pan American journalism is the torch of democratic liberty and the conserver and protector of the democratic spirit in the republics of North and South America, "Therefore be it decided upon by this Pan American Commercial Congress, in session in Washington, June 2-4, 1919, that a committee of journalists to be made up of two from each country represented^ in the Pan American Union be appointed by this Congress to be known as the Vi^lance Committee on Democratic Information and to serve, under the general direction of the Pan AmericarTUnion, as an agency to detect and to reveal any propaganda that is a menace to demo- cratic institutions and to the peace and prosperity of the republics of North and South America." 348 SECOND PAN AMERICAN COMMERCTAL CONFERENCE While I incorporate this proposal as part of the subject matter of this address, I shdl, at the proper time, move its adoption. The Pan American press as the great torch of news has recently had its light vastly increased by the enterprise of the Associated Press and the United Press, in enlarging their news service between the continents. The importance of this enlarged service is incalculable. It means better understanding and greater friendship. The light bearers who have brought this to pass, Mr. Frank Noyes and Mr. Melville Stone, of the Associated Press, and Mr. Roy Howard, of the United Press, deserve not merely unstinted thanks, but substantial and generous financial • support, for they are building for Pan American good will the only foundation on which it can survive and grow — ithat of a common understanding. It is now possible, for the first time, to weave between these Republics those bonds of knowledge that are sure to become the bonds of peace and enduring friendship. In this country ^reat journals like the New York Sun, the New York Herald, the Philadelphia Public Ledger, have opened special sections for the presentation of news and feature articles on the Latin American Republics. These more elaborate articles, supplementing the news that is coming daily by cable, are giving to this country a greater breadth of knowledge of tha interest, the hopes, the progress of Latin America than we have ever had before. And the journals of South America and of Cuba are even more enterprising, for they are matching our journals by giving even more attention to North American news than we give to South American and they also carry on in this country and in Europe edu- cational -campaigns in regard to their respective countries. It is often invidious to mention names, where so many are deserving of praise, but the work being done by the Journal de Commercio of Rio de Janeiro, by La Nacion and La Prensa of Buenos Aires, by El Mercurio of Santiago, and by El Mundo of Havana is deserving of particular notice. This recent and great growth in the amount of news circulating between the continents has given fresh importance to the second distinctive service of the press, that of being a torch of opinion. In times past this torch has not always shed a strong, clear light. And the reason has been that opinion has not been based on full and accurate knowledge. Happily this is fast being corrected through the cable and special news services to which reference has been made. And it will be still further corrected if insidious propaganda can be checked through a strong committee of journalists operating under the general guidance of the Pan American Union. That is a means right at hand that can turn on such propaganda a '"piti- less publicity," both through the torch of news and the torch of opinion. In interpreting these two continents to each other it is essential that news and opinion be sufficienfly comprehensive to present a well-balanced and accurate pic- ture of the spirit, the activities and the whole broad life of the people dwelling in them. Otherwise the picture is incomplete and, however accurate it may be in some respects, the total impression will lack proportion and focus. There has been a signal illustration of this that has become so familiar that we may have lost its significance. It has been the good fortune of the United States to be repre- sented abroad by a group of export journals of unusual force and ability. The most convincing evidence of their force and ability is the fact that they have had much to do with gaining for this country the reputation of being ultra commercial, even to the point of losing sight of the moral and spiritual values of life. In short, they have presented but one side of this country's place and power in the, world, the commercial. Happily, that one-sided picture is being cor- rected through the publication, in the past few years, of several periodicals that interpret the whole broad life of the 'United States in terms of human, as well as of commercial values. This in no degree lessens the importance of the great export and trade journals, but rather supplements it, by suppyling what they in the very nature of their field and purpose, have not even undertaken to provide. In the three-fold power to give light, through news, opinion and adver- tising, that is the thesis of this address there remains to be considered the luminous quality of the torch of advertising. In both North and South America the power of advertising has come to be one of the most potent forces in business. It is being ^tudied and analyzed as never before, to the end that it may perform with the greatest economy and efficiency the work it has to do in the world. And a number of deductions from experience have been crystallized into sound practice. For example, it is generally agreed that advertising, like all business, must rest on confidence, and that, therefore, it must be guided arid governed by truth. A COMMERCIAL INTELLIGENCE AND PUBLiaTY 349 great international advertising organization has taken form in recent years, called the Associated Advertising Clubs of the World, and tlie one word Truth is its motto and symbol. In this country it has been responsible for placing honest advertising laws on the statute books of 35 States and it has done much to standardize advertising practice. This powerful association is to hold its inter- national convention in New Orleans in September and it will further Pan Ameri- can journalism if the advertising interests of both North and South America are represented in its councils. For one thing, the journalists of Latin America will learn how seriously the publishers and business men in this country look upon advertising and how jealously they guard its good name. In this connection it would increase both friendship and trade between the continents if the few export manufacturers in the United States who are careless both of their country's reputation and their own, should be made known to publishers so that they might be denied advertising space in which they could offer their goods for sale. As a publisher I believe I can speak for North American publishers in saying that we would not knowingly accept an announce- ment from an advertiser, who failed to deal fairly with his customers or whose goods were not as advertised. And I have been commissioned by President D'Arcy of the Associated Advertising Qubs of the World to say, here and now, that the Vigilance Committee of the Clubs will immediately investigate, without charge, any responsible complaint, either of unreliable advertising or of unfair trade dealing, brought against a North American exporter. The great body of ex- porters in the United States is made up of men and companies of the highest character and the Associated Advertising Clubs are organized to protect both them and the buyers of American goods against the sharp practice of the dishonest few. The Associated Clubs have a strong legal department, equipped for investigation of cases, and, where the facts warrant, for prosecution, and in their name I publicly make the announcement that they will give immediate attention to all responsible complaints received at their headquarters, 110 West 40th Street, New York City. The torch of advertising should be lighted with truth and the publishers of Pan America owe it to themselves, to their readers and to their countries to see to it that this is done. During the sessions of this congress, you have been discussing how the great and growing trade between the two continents can be properly financed. As the leading bankers in this country see it, that is going to resolve itself at last in a campaign of education. The investor in this country must be informed with respect to the desirability and safety of South American investments and in regard to the necessity of this country making these investments in order to establish proper credits for export trade. This campaign will require educational advertising. So it is most essential that everything be done to see to it that advertising is placed on a sound and dependable basis. Already the American Bankers Association, the Investment Bankers Association and the Council on Foreign Relations have appointed three strong committees that are working in close co-operation in develop- ing a plan toward establishing these credits. This campaign of education will have to depend almost wholly on the press as it will require publicity, based on the intrinsic interest and value of the news in regard to foreign investments; publication work made primarily to reach the commercial and investment bankers of the United States, and advertising work directed to the education of the general public. Through this campaign, the mind of the country could be quickened with the truth that labor and capital have a common stake in making a market for for- eign securities, for on that market, their own prosperity must largely depend. Investment in these securities, it could be fairly urged, would yield three direct returns : Interest to the investor, wages to labor and dividends toi capita! ; and beyond these direct returns, the common benefit of a widely diffused prosperity in the republics of North and South America. Pan American journalism faces this pressing and fundamental problem and it can do as much toward solving it as any of the other forces. In speaking of the necessity of having the torch of advertising lighted with truth, may I tell my brother publishers throughout Latin America, a word or two from the experience of -North American publishers. We have found that it has been not only good morals but good business to maintain a rigorous censorship over our advertising columns and to bar from them any announcements that offend good taste or that are not suitable to be home across the thresholds of the 350 SECOND PAN AMERICAN COMMERCIAL CONFERENCE home. Following this censorship, we have barred from our columns, all objec- tionable medical advertising; all doubtful financial advertising and all advertising, of whatever sort or kind, about which there can be any reasonable doubt. And while there may have been some temporary loss of revenue there is not a pub- lisher in this country who will not say that he has gotten from the best advertisers an amount of business that far over-balanced anything that he may have lost through refusing to sell space to doubtful advertisers. Yesterday in New York, I was having luncheon with the advertising agent who places the largest amount of export advertising of any man in the United States. I told him of this address that I was to make here in Washington today and he asked me to say, in the spirit of the best friendship to Latin American publishers, that they would greatly enhance the value of advertising space in their columns if they would decline to carry objectionable medical advertising and doubtful advertising of whatever kind. He went on to say that some of his largest customers had positively refused to take advertising in publications that carried sensational and objectionable medical advertising, which was offensive both to good taste and to good morals. This message I am passing along with the definite conviction that every wood of it is sound and true. The time is going to come, and I have the faith to believe that it is not far distant, when the statement often made by my late partner, Walter Hines Page, will come true : "That a publication is no better than its worst advertisement." In a word, there can be no double standard for any honest publication. There is only one standard — ^that of absolute honesty, and advertising will fully come into its own when the time comes that this standard is set up and maintained by all publications. In the great war that has been won for human freedom, the press in the democratic nations has borne a valiant part. It served through its enlightened news, through its courageous editorial opinions and through its powerful agency as a medium of advertising. Today, in the new world that follows the war, it stands as a mighty beacon of hope for mankind. A great international era is dawn- ing in which the common interests of the world, without loss of racial integrity or of essential national sovereignty, will be considered and cared for by the League of Nations. The supreme common interest of the world, that peace be established and maintained on the basis of justice rather than of military power, will become the controlling purpose, the dominating objective of the League; and the League must not fail. It is the crowning achievement of civilization, and is essential to its protection from destruction. The League will not fail because the press in the democratic nations is overwhelmingly in favor of establishing it and will so inform and educate public opinion in support of the League that it is sure to become an enduring fact of history. This great dream has possessed the hearts of the peoples of the world. It is both the duty and the high privilege of the press to help that dream come true. CABLE NEWS TO AND FROM LATIN AMERICA By W. W. Davies, Representative of La Nacion of Buenos Aires in New York. (Delivered at the Morning Session of Friday, June 6) Mr. Chairman, Ladies and Gentlemen: It was somewhat of a surprise to me this morning to find that I was going to be called upon to address this meet- ing, but nevertheless, I welcome this opportunity. Mr. Noyes, in his address, told you something of what the Associated Press is doing for South America. I would like to add something to that and give you one or two suggestions. You might get some suggestion, some conception of the service which is being sent to South America by the Associated Press when you know that the number of words each day going from New York to Sbuth America is thirty- five hundred. That is a tremendous cable service. You must understand those messages are sent in, rigidly condensed form, so that when they get to South America they probably represent something like ten thousand words. My task, a somewhat difficult one, is to find something to send after the Associated Press has already cabled three thousand words to South America. Still, we have to do COMMERCIAL INTELLIGENCE AND PUBLICITY 351 the best we can and as Mr. Merrill will probably be able to tell you, we do send something beyond that three thousand words. The position of a foreign correspondent is a somewhat peculiar one. His task is not so much to send what we call fiat news, but to send information to South America which will be interpreted. The Associated Press we can always depend upon to carry fully and accurately any information as to what is hap- pening and then it becomes our duty to explain what it means. When I came to America about three years ago I was then the representa- tive of a group of Australian papers, and I found that it was an extremely diffi- cult undertaking to interpret the news for a place like Australia. When I first came to New York from Australia, I was visited by some Australians who said, "Is this where the American news comes from?" I said "Yes," with conscious pride. They said, "Well, we always read the news from New York but of course nobody ever believes it." We have tried our best to change that and I am sure that in the case of service going to South America we have succeeded. The thing that we aim to do is not only to inform people as to what movements are on foot here but also to create and foster the Pan American spirit. I have recently tried to aid in that by establishing a little service of news which contains a number of items of Pan American interest which is being published now in La Prensa of New York. We gather those items of news from correspondents of La Nacion through- out South America and I have heard quite a number of comments from Latin Americans on how much they appreciate this additional news of the splendid service which the Associated Press is carrying. I think that before I close a tribute ought to be paid to the All Americas Cable Company for the splendid way it has assisted in supplying this service to South America. You can have no possible conception of the amount of matter which that Cable Company has had to carry, but I will just assert that the figure which has been reached by that company on some days has been as much as eighty thousand cable words a day. If you can imagine what that means, spread over only twenty- four hours, you can get some understanding of how the company works to foster this spirit of Pan Americanism. In addition to that, we find that we get particularly good service on the news which comes from South America. In addition to carrying news from here to South American countries this Cable Company has offered Ito carry news coming from Europe as well, because when there are any interruptions between Europe and Buenos Aires, that means an enormous amount of extra matter placed upon the cable from here to South America. I welcome this opportunity, on behalf of La Nacion, to present a few facts that we are sending to South America, and I can assure you in my capacity as correspondent of that paper that I am going to do my very best to make known any movement that is started here for the betterment of Pan American relations. HOW THE BUSINESS PRESS SERVES INDUSTRY By a. C. Pearson, President Associated Business Papers, Inc. (Read at the Morning Session of Friday, June 6) The publications of the Business Press may be divided into two general groups, namely. Trade Papers and Technical Papers. The Trade Papers are those which have to do with merchandising and which reach either the manu- facturer or the distributor of merchandise, and the Technical Papers, such as engineering publications, are those which devote themselves to one particular science or profession. The outstanding feature of a business paper is that it confines itself to business subjects and handles only those subjects which apply to its own trade or industry. The subscribers to business papers are interested in both the edi- torials and advertisements since they take these publications for the serious pur- pose of getting information and assistance in their particular occupation. The business publication is made possible by the co-operation and support of its industry, but it likewise in turn makes possible the more rapid growth 352 SECOND PAN AMERICAN COMMERCIAL CONFERENCE of that industry. Experts on world commerce have stated that they could tell the progress of a nation in any line by inspecting its business paper in that par- ticular line, and any country wishing to progress in a particular industry might well invest a large sum in the improvement of its publications in that particular industry. The fact that the United States has made great industrial progress in the face of high wages as compared with other countries is due first, to the ingenuity of its investors and managers, and second, to the modern methods of manufac- ture and distribution made possible by the editorials and advertising services of its business papers. Regardless of the great territorial extent of the United States, there is a similarity in the business methods and the kind of merchandise i required in all the different States because of the quick dissemination of information through business papers. This same connection can gradually be established throughout all the Americas^ To get a commercial understanding and to promote the interchange of trade, it is necessary to read the same publications and adopt the same general business practices. It is most encouraging, ' therefore, that large numbers of the leading business papers in the United States are producing foreign editions and that many leading Latin-American publications are getting editorial information and extensive advertising from the United States. The business paper's first service to commercial intelligence is in its news of the markets, of the merchandise developments of the trade, or of the scientific progress. Its second service is that of advice and criticism. One prominent trade publication has as its motto "What To Buy And How To Sell It." It devotes as much time and attention to the subject of selling merchandise as it does to the markets and the changes which will affect the price of merchandise. A third great service rendered by the business publications is the adver- tising which it brings to the subscriber. In this is included the best offerings of the manufacturers in that particular line and a presentation in the briefest pos- sible form of the merits and talking points of the merchandise which that par- ticular subscriber is interested in. Tlfere is so much supervision of copy and method .by the publishers, that in the business paper field today the advertising renders a service w;hich is closely second to the editorial. The leading business papers go into all the problems and the needs of their industry. They are the leading agitators for progress and frequently the unsparing critics of trade abuses. Many of these business papers conduct de- partments which personally aid their subscribers in handling their problems of accounting, store or factory systems, credits, and even co-operate with them in choosing the proper merchandise for specific uses or particular locations. They take a leadership in advocating necessary legislation for the improvement of industry, and are leaders in all helpful and patriotic movements. For example, the "Made in U. S. A." campaign was originated by a bus- iness paper. The great prosperity campaign now running is the result of the co-operation between some leading business men and business papers. The pres- ent Webb-Pomerene Bill which promises so much for foreign trade iri the United States was made possible largely by the co-operation and agitation of the bus- iness press. The fact that the United States Government secured its advertis- ing free during the war, instead of paying out millions of dollars to publications, was due to the fact that three hundred business papers came forward and volun- teered their space without charge to the Government for the duration of the war; the other forms of advertising rapidly came into line, but the leadership rested with the business press. In one Liberty Loan campaign there was given by the business press of America more than 4,000 pages of free advertising to the Government. In recruiting men for the Signal Corps, Aviation Corps, and other important technical branches of the service, the business papers took a leadership which brought them the unstinted praise of the Government officials. These few illustrations are given merely to show the resposibility iot lead- ership which the business press takes. With this understanding of the business press it may readily be seen why they are giving so much attention and rendering so extensive a service in pro- moting not only the foreign trade of the United States, but also the inter-charige of products between all foreign countries and our own. COMMERCIAL INTELLIGENCE AND PUBLICITY 353 Since efficient service is based first on proper information, it will be nec- essary that the business papers make a thorough study of foreign conditions and that they equip themselves to show editorially the changing market requirements of the different countries to which their manufacturers wish to appeal. This rule applies to the Latin-American publications in the same way that it applies to those of the United States. There might well be close connections established between leading Latin-American business papers and those of our own cotintry. The activity of our publications in reaching the Latin-American field can not be judged merely by those which carry Spanish names, as a large number of our other publications are seeking foreign subscriptions and some of them produce special issues which are printed in Spanish as well as English. The success of the trade between our respective countries will depend on the knowledge we have of the markets and requirements of our customers, wher- ever they may be. This information can be given primarily by the business press and there is every indication that these publications are thoroughly alive to the responsibility which they owe their industry as well as their country. PAN AMERICAN CABLE COMMUNICATION By John- L. Merrill, President, All America Cables (Read at the Morning Session cff Friday, June 6) Mr. Director General and Gentlemen : Conscious of the part which we have been privileged to play for the past forty years in the fostering of both friendly and trade relations between the three Americas, I am grateful for the invitation to address you briefly on the subject of Pan American cable communication. Some forty years ago, back in 1879, James A. Scrymser officiated at the wedding of the United States and Mexico, i. e., he tied together these two great countries by means of an ocean cable. A few years later he linked to the United States the Central American Republics, then one by one the Republics of South America and Cuba, until today an actual link of over 7,400 miles in length connects New York with Buenos Aires and soon Uruguay and Brazil will join the inter- national family. In the Pan American Hall of Fame which our able Director General Barrett may some day build, there should be a niche for the late James Alexander Scrymser. The Americas will never realize the debt they owe to him and his in- spiring faith in the future of Pan America, and to his associates who shared that faith and who supported him with the necessary capital. To make the union between the Americas stronger, we have doubled and in many cases tripled the ties. I would that I could paint a word picture of what this union has meant to all Pan America. Cables under the sea should not be labelled a "dry subject." Continuity of communication, by efficiently operated cables, is a matter of vital importance and we feel that no one agency has done more toward the development of commerce among the three Americas and in fostering the friendly relations between the citizens of these Republics than the All America Cables. In the rapidly expanding trade of the Americas the minutes and hours be- come precious factors of dollars and cents. Quick, accurate and easy communi- cation is therefore a positive necessity in order that the citizens of the three Americas may bid promptly for profitable recognition in the world's markets. Day by day manufacturers and merchants are realizing that the world's important commerce belongs "on the wires" instead of in the mails. This is strikingly in- dicated by the remarkable increase in wire traffic. Are you appreciating thoroughly the value of these facilities? The cable companies of the world are furnishing a service of rare importance at a time when the world stands, most in need of such service. All are fully alive to their responsibilities. All are entitled to great credit and because my subject confines my remarks to the Pan American cable system, I trust I shall not be misunderstood as ignoring the wonderful service which other cable systems of the world have rendered, particularly in the past few years. We of the cable companies, have been passing through trying times; we, of the All America Cables system have encountered untold handicaps ; labor short- 354 SECOND PAN AMERICAN COMMERCIAL CONFERENCE age ; shortage of materials, greatly increased costs and extraordinary conditions, . and yet we can come to you, leaders of Pan America, and congratulate you upon the one outstanding fact — that during the World War the direct cables to Central and South America contributed a service of greater efficiency than ever before and we are proud of the fact that that very efficiency" has meant much to the citizens of these republics, and that, notwithstanding the rising costs of operation, we Tiave been able, by the increase of business to reduce the charges for our service. Do not misunderstand me, I am not here to "talk shop." I make allusion to this fact, the truth of which is appreciated by the Governments and peoples of the Republics we have served, solely to emphasize a greater fact and that is that we, who are endeavoring to render a real public service, are fully conscious of our responsibility to you and the serious part we are called upon to play in pro- moting those intimate relations, along the lines so ably discussed here. There is a mutuality of interests between you and us that cannot be too strongly eijiphasized. We must give you swift, secret and accurate service and -at the lowest cost commensurate with the same. For this we count upon your support and coopera- tion. We are fulfilling our part. No expense has been nor will be spared to make, between the United States and Central and South America, a cable service equal to any in the world. Nationals of every country touched by this cable system are working to this end by rendering efficient and trustworthy service as operators and employes. As for low rates. Do you realize that despite increased wages and increased costs, no effort has been made by the All America Cables to increase rates but that — on the contrary — we have during the world war — when the cost of every- thing was mounting- higher and higher, actually reduced our tariffs 25 per cent. AVe alone have maintained a Deferred Rate traffic during4:he war. Now we want you to fulfill your part and give to our endeavor your sup- port. If we have it you will not only tell us when our service is at fault, but will tell us when our service is good. A word of commendation, when deserved, means much to our staff and to the executives. We invite your cooperation. By that I mean that we welcome your sugges- tions as to how you think our service can be improved, what we can do for the betterment of the country in -which you are particularly interested ; for the up- building of better trade facilities between that country and her neighbors and friends in this Pan American Union ; for the promotion of closer ties of friend- ship between that country and the others. By way of illustration, a distinguished Argentine conceives the immense advantage accruing from the formation of an Argentine and United States Cham- ber of Commerce. Hie permits us to cooperate with him, knowing full well our keen interest in everything that concerns the welfare of Argentine and the United States. He suggests that we make possible a weekly Bulletin of up-to-date trade information, market quotations and other news of interest not covered in the regular press service. Of course, we gladly cooperated with him and we modestly think that that cooperation will be of very real service to what he is endeavoring to accomplish. As a public service corporation we are necessarily bound by certain regu- lations Jjut those regulations do not forbid our helping in many special ways the countries we are privileged to serve. Here we may be in a position to render a special service to the Argentine, here to Chile, here to Ecuador, here to Peru, here to Uruguay, here to Paraguay, here to Brazil, and so on and on. Have you interests in Colombia? Or Ecuador? In Central America or Mexico or Cuba? Is there something out of the ordinary, perhaps, which the cable can do to bind these countries and ourselves more closely together? Let us hear it from you. The point I am trying to make is that our All America Cables are Aiherican through and through. By that I mean (as I glance down our lines) we are Cuban, Panamanian, Ecuadorian, Peruvian, Bolivian, Chilean, Argentinian, Uru- guayan, Paraguayan, Brazilian, Mexican, Guatemalan, Honduran, Salvadorean, Nica- raguan and Costa Rican, arid all in addition to being whole heartedly for our own parent nation, the United States. I mean that what is for the good of each is for our good. Gentlemen, we know the meaning of the word "American." We are doing business today under the caption All America Cables and we shall not rest con- tent until we serve directly every country in America. We have dedicated to the COMMERCIAL INTELLIGENCE AND PUBLICITY 355 service af the Americas some 20,000 miles of cable and land lines and we hope soon to complete our first extension to Uruguay and Brazil, later on from Rio de Janeiro northward. These Brazil extensions, with other important extensions about to be made, will bring the total mileage up to 30,000. We are not at the end of our task. Wherever in these Americas you think a network of cable com- niunication should be spread, we are ready and willing to spread it. Where ex- isting channels should be supplemented, it is our desire so to do. It is from your expression that we learn the location of new connections that will most benefit the common cause in which we are all interested. The cable promotes unity among the nations ; it makes possible a proper understanding between the citizens of these virile Republics of the three Americas, and it makes for a closer acquaintance. For the upbuilding of a better understand- ing between the Americas; for the cultivation of friendship that will last; for the developing and cementing of trade relations between the three Americas, I know of no greater agency than the press arid I wish to make mention of the fact that we have heartily cooperated with the Associated Press, the United Press and other press associations and the great newspapers of the Americas in developing an in- terchange of news which already has had a marked influence in the United States and Central and South America, and that influence is bound to increase as time goes and will continue to do more and more toward the cultivation of that lasting fraternity arnong the nations of this Western Hemisphere, the foundations of which have been so marvellously well laid by the Director General of the Pan American Union and his capable associates. In conclusion, it may be well in this international conference to bring out the importance, now recognized as never before, of preserving the integrity of the lines as they pass through the territory of each country. The communications may be supervised and regulated, but not interrupted, for this is essential for the preservation of national and personal life and interests. Under the strain of con- flicts between governments and in trade, in times of disasters and calamities, of disease and famine, the cables should in the interest of each be protected by all the peoples they serve. LATIN AMERICA IN THE PRESS OF THE UNITED STATES By Alfredo vdH^ Collao, Publisher, "La Prensa," New York City^ (Read at the Morning Session of Friday, June 6) I have been highly honored by being called upon to say a few words regard- ing newspaperdom which I will endeavor to do with absolute sincerity. In the assemblage of forces now being called upon to build up the new relationship between the Americas, we must not forget the newspapers and periodicals of both languages, whose duty was until today to promote a friendly spirit, and whose mission in the near future will be to insure and fasten this relationship in trade, industrial and social matters. I firmly believe that the best instrument to shape public opinion is the news- paper. I think we all agree that the average person, except those who have been directly connected through business or other activities with South America, have not the necessary knowledge of the Southern republics, either material or spiritual. I am sure that in this respect the American Press can do an enormous valuable work giving more space and attention to the Pan American subjects. I want you, gentlemen, to understand that I am not critisizing, but to cure maladies we must have medicine. It is very seldom that We find in the American newspaper any news of South America, excepting for an earthquake or something of the kind. This very Conference gives us an instance of what I say, considering such qji important and useful event, it has not been given the necessary importance by the press as shown in the daily newspapers throughout the country. It seems as if this assemblage of people of so many countries has not called the attention of the press, and this attitude is more noticeable since we received one after another the proves of deference and courtesy from the American officials, society and people. In my opinion, after the paramount interest of shipping, the press should come next in the consideration of the rnediums to be used as instruments for closer Pan American intercourse. The daily paper is the most ^ble resource that 356 SECOND PAN AMERICAN COMMERCIAL CONFERENCE both the Government and people can find to express their purposes and needs, and as a promoter of more friendly relations by the abolition of misunderstanding, ignorance and prejudice. I believe that both the editorial policy and the informa- tion policy of the American newspapers can help in promoting a closer friendship by taking more often in account the opinion expressed by the press in Spanish and Portuguese languages, and with relation to news, there is plenty of opportunities to present the best points of our life and activities. A careful selection of the correspondents for American papers throughout our countries will help to create a better atmosphere. As a resume of these ideas, I may advance the following suggestions: To stimulate the interest in South American affairs by giving the American reader an abundance of reliable and selected information, and by often discussing in the newspapers Latin American topics. The transcription of opinions expressed by our Spanish and Spanish-American newspapers is also to be recommended. The employment of the newspaper in the Spanish language with a view to familiarize the American reader with Latin American affairs and language. To use the press in the Spanish and Portuguese languages to carry there the purposes of the American Government, commercial enterprises, and industrial interests in order to Ijring forth and illustrate the Spanish-American public in American subj ects. The giving of more facilities in land and sea to the second-class matter, by allowing a fair tariff to the bulk of newspapers, going to or coming from Latin America, whether they are published in the English or Spanish language. Now, as a practical example of the value of Spanish newspapers I may here state, 'that "La Prensa," of New York, the only daily edited in Spanish language' which I have had the privilege and honor to direct since its foundation, is being used in most Universities and schools throughout the country as a text for studying Spanish and as a means to secure information as to commerce, opportunities, cus- toms, social activities, etc. Not solely is this a fact, but enterprises are using their columns to reach the South American buyers there or coming to the Utiited States and bringing forth their products to the people of the Hispanic republics. They have understood and certainly appreciated the value of Spanish newspapers towards furthering business, good-will and friendship. I do sincerely hope that the American and Spanish newspapers will soon reach a perfect entente cordiale for the benefit of both parts of the Continent. FILMS FOR INTERNATIONAL BUSINESS ADVERTISING By Joan Galley, A. M., All America Film Service, Washington, D. C. (Read at the Afternoon Session of Wednesday, June 4) When a commercial publicity film is so built that it carries enough human interest to make it of news value, and its titles are well written in the language of the country in which it is shown, it becomes not only one of the best possible media of commercial intelligence, but is a most effective agency in creating inter- national good will. Built for Latin America, it will not only sell the goods for which the Latin peoples are now in the market, but it will build up a friendly interest in American business and American business men, and will develop a demand for articles that are not now wanted. Latin American markets have been wide open to our goods not because we had really sold them, but because the fortunes of war gave us a chance monopoly of the only available supply. Now this great volume of business, with its enor- mous possibilities for further development will not remain ours, just because we » happened to sell some goods during the war. Much of it will flow back into the old channels as soon as they are open, unless the industrial and financial leaders' of America have clear enough vision to make a united campaign to hold, for the mutual benefit of the two Americas these trade winnings of the war. The prob- lem is not one of pushing the article with the North American trade-mark under the eyes of the Latin. It goes much deeper than that. Can we create in the minds of the masses of the people of Latin America so clear an understanding not only of the purposes but of the personalities of our people that we shall COMMERCIAL INTELLIGENCE AND PUBLICITY 357 arrive at such mutual friendliness and confidence that not only will they wish to buy our goods, but by the same token we shall be interested in buying their bonds? Perhaps you remember a statement that was made on the floor of the Conference by one of our Latin American friends, a statement so luminous that I think I remember it verbatim. "You know we feel that we must be loyal to the folks who have trusted us with their capital." But how on earth can you introduce a continent to a continent, when you meet at once the language barrier? There is a medium — just one single medium which, rightly used, can readily build up mutual friendliness and cordial under- standing between groups of people widely separated by distance and language and training. That one medium is the well built publicity film. Whom do you suppose, of all Americans, are best loved and best known below the Canal today? Oh no! Guess again. Mary and Doug and Charlie, I'd say. Because they have smiled at South America oftener than any other three Americans. Now when it comes to a matter of the interests of business men in mutual trade re- lations do you really think Doug Fairbanks' smile has anything much on Homer Ferguson's. Or on yours ? Try it over in your own looking glass. Don't you think that if you could meet the South American business man and could speak Spanish and Portuguese and could have a leisurely friendly visit with him that he might decide that you were a good sort of chap to deal with, that you were considering his interest as well as your own, and that it might be to your mutual benefit in- creasingly to deal with each other? Build the right sort of business film and go down to Latin America on that film. Meet your Latin American acquaintances, who may decide to become your friends, not by the dozens but by the th6usands. Films are fashionable, you know. The Kings do it and the Presidents, and the society folk, and the riveting gangs. Do your Latin American friend the courtesy of showing him something more than the outside of your factory and the thing that is made in your shops. Say something to him beside your line of selling talk. He will not have to wait to have your greetings relayed through an interpreter. They will be right in front of him, on the film caption, before and after your smile, in his own lan- guage. If your manufacturing process is interesting he might like to have you tell him about it and show him over your works. He would be interested in seeing the people who work in your factories, in the arrangement of your offices, curious a bit about the number of women who seem to have responsible share in your office routine. Take him to your club. Invite him to your home. Show him your estate — your gardens, your cars and your horses. Tell him about your hobby. All this will go on a film. All this will interest him- Does your girl drive a car remarkably well for a youngster? Let him see her drive. Did your boy win a Croix de Guerre? That's human interest stuff. As to your home I have no comment to make. The wishes of women vary. But it is safe to guess that some of them quite enjoy the film. Consider the society page, and the way photographs of interiors find the editorial rooms of "Vogue" et al. When your personality has found a friendly place in the mind of the Latin American he will not forget to buy your goods. This type of selling film will not only sell your own product but will pull powerfully in opening a market for other American made goods — goods that Latin America does not now know she wants. You know you cannot argue a Latin American into buying. They are just like us, in not being very anxious to be told what it is that we want. We think we know what we want. So do they. But we all like to gratify our interest in other folks and their ways and we all are influenced by suggestion. Being pleased, unconsciously we imitate. There is an everlasting monkey in us all. The clerks walking about your offices in English-cut Hart-Schaffner-Marx and in Palm Beach suits, will begin to create a demand for the great American ready-made, though you may have built your publicity film for the purpose of sell- ing bicycles. The picture of the sun-parlor of your country house will affect perhaps the future market for Crex rugs. The charm of your kiddies' play room might sell a Klearflax. In any case it would start Latin American children to asking for toys that are a bit different from those that have been coming to them from Europe. Every office interior, every beautifully furnished American home will help along the export market for that crowd of Grand Rapids furniture men who haven't been sending American furniture south so rapidly ^s they should. 358 SECOND PAN AMERICAN COMMERCIAL CONFERENCE You will, of course, follow up your films with the organization you have already built to take care of your foreign orders. Your salesmen will find the picture of great value in interesting new customers, and it will be of special help should it be necessary to send as your representative a man whose command of Spanish or Portuguese is not yet perfect. Due perhaps to our present defective teaching methods, we have but few commercial men who are also able linguists. No type of film takes more careful work in building than the business film. Your Latin American films must be built by a director who understands the slant of the Latin interest in folks, who will study carefully the possibilities of yourself and your staff and your plant for picture values, who will study your product under the supervision of one of your own men and the South American market in relation to it. Professional motion-picture actors should not appear 'in this type of film, for its value depends upon its being an actual record of your personality, your interests, your organization, and your product, so well photographed that it has artistic merit as a picture, so full of human interest that it becomes news, which audiences will pay to look at, even in the Rialto on Broadway in New York City. The picture you build for Latin America must, of course, be titled in Spanish, or in Portuguese if it goes to Brazil. I suggest double captions. Put the Spanish on the upper half and the English translation below it. It would be a fine thing to send our languages right along together in peace and harmony like that. The peace and the harmony will, however, depend upon the quality of your Spanish title writer. We have done considerable harm to our business by sending poorly translated advertising material into Latin America. See that your picture is built by a director who will not use a cheap translator, who will not only work with publicists and translators of recognized standing, but who will have time and patience to submit titles for comment and criticism to the con- suls of the countries that are to see the picture. Building a selling picture for an export market is no simple task. It takes an expert to do.it. But as a selling agent for your goods in a foreign market it has no equal in efficiency. It gets results. The cost is by no means excessive. A film can generally be built for rather less than the cost, of one insertion of a two page spread in any national weekly worth using. After the negative has been built any number of prints can be made at relatively small cost. The amount you must charge off for depreciation from wear and tear, from one showing of a reel amounts to thirty cents. I'm not joking, I mean literally thirty cents. The only thing that is the matter with the thirty cent estimate is that it is too high. If a film is receiving good care the cost per reel per showing approaches fifteen cents. Sounds like a car-fare. When once you have built your picture right, and given careful attention to the quality of the titling, you can depend upon a reasonably uniform response. The reasonably uniform misapprehension that exists in the minds of some Latin Americans regarding the personality and interests of the average business man in the United States, is due to the lack of any plan or care on our part to let them know what sort of folks we really are. Too many Wild West and Do- mestic Triangle pictures, without the balance of any adequate representation of most of us as we really are, woqld, after a period of years, affect the thinking and opinion of any audience. I know there have been among our American pic- tures some exceedingly brilliant exceptions, and of course there is always "Mary and Doug and Charlie" who are in a class by themselves. But there is so vastly much more to be told of the United States than can be told by an occasional "feature" done in Griffith's best manner, or by the uniformly interesting work of the "big three." Latin audiences would be interested in seeing something besides our mythical wild-westiness and our Triangles would we but take the trouble to build some pictures that would show life and the interests of our typical leading citizens, particularly the life and interests of our business men. The motion-picture house in Latin America is generally much more beau- tifully built than has, until very recently, been usual with us. The audiences are far more leisurely, they are not willing to be hurried and crowded as we are. Moreover, the range of their interests is broader. Particularly is thein interest in world affairs keener and wider than that of our own average audience. Evidence of this is amply given by the superior quality of their Cinema "N?ws Weeklies," COMMERCIAL INTELLIGENCE AND PUBLICITV o59 They are genuinely interested also in good industrial pictures, and one of the best that has been shown is a European film showing tobacco culture and the pro- cess of making Turkish cigarettes. You believe, do you not, that the same Rio de Janeiro audience that was pleased -with the cigarette film, would be pleased as well with the picture story of your own industry if yo'u took the trouble to build a fine film with plenty of human interest news value in it and the best possible titling? Now I have no wish to underestimate the forms of advertising already in use, and I know their value. But the picture must be added as a great medium of commercial intelli- gence, because it is at once the most rapid and the cheapest way of interesting large groups of potential consumers in your goods. Take thought for a minute of the enormous number of people in the United States who cannot read any language. We were quite surprised and shocked recently when the results of army literacy tests were reported to us. I hardly think things are very much better in Latin America. Ten years from now there will be no more need of standing and explaining the unique advantage of pictures in opening foreign markets to you men who have American goods to sell than there is need now of standing and explaining to a market gardener over in Jersey the unique value of the Ford as a method of getting his truck to the New York market, as compared with his previous method of loading and harnessing by lantern light and jogging over the miles to market with a team and an old Studebaker wagon. Ten years ago some of you were salesmen, and you remember that you did have to stand and ex- plain that a gasoline engine would pull the load to market faster and better and cheaper than the muscles of a farm team. And you had to explain that the thing was not dangerous. Neither is there anything dangerous in assigning a big block of your ad- vertising appropriation for the building of good films. They will develop interest in your product and good will for you, and can travel the road to the minds of th? masses of the people sixteen times as fast as print. You know perfectly well, all of you, that people do not buy merely because they have information about goods, but because the desire for these goods has been develof)ed in them. A picture can'be so built, that it not only gives information about your goods but creates a desire for them. There are but two ways of releasing simultaneous emotion in masses of peo- ple. Music is one, the motion-picture is the other. But the picture can direct the mind at the same time — it can mobilize spiritual forces as the machines have mobilized brute strength. It lies within the power of you business men of America to make the films not only sell your goods in Latin America, but also to build them so that they may become the greatest single spiritual force for mutual understanding and friend- ship among the free peoples of this hemisphere. MOVING PICTURES FOR LATIN AMERICA By C. F. McHale of the National City Bank of New York. The-moving picture is, indeed, and of right should be' one of the principal means of acquainting our South American neighbors with conditions, natural and otherwise, existing in the United States. There is, however, one proviso of great importance which has seemingly been neglected heretofore, and that is that great care must be exercised in the selection of the films to be sent to South America. Manufacturers have hitherto sent to South American countries the very same class of films that are used here. No special films have been prepared for use in the South American countries, with the consequence that erroneous ideas have been formed as a direct result of the poor choice of films. It is, thus, that the moving picture instead of proving beneficial, has proved detrimental. In the first place, our manufacturers have not paid sufficient attention to the matter of translating the captions of their films, and have very often utilized the services of very incompetent translators to translate these from the English. In many instances the resultant translation has been very poor and very often failed to convey the sense of the original English. In the second' place, our manu- facturers have failed to exercise sufficient care in the selectioni of the type of film to appeal to the taste of South Americans. Up to a short time ago, fully SO 360 SECOND PAN AMERICAN COMMERCIAL CONFERENCE per cent of the films sent to South America have been Wild West films, depicting the Rough Riders, Indian fights, and great catastrophes. Of the remaining films, 25 per cent have been social dramas which have depicted problems in our socia) life, the most prominent of which were the problems of divorce, the faithless wife, etc. The remaining 25 per cent have been comedies of the Charley Chaplin or Douglas Fairbanks type and these have enjoyed the greatest popularity. It will readily be seen that these films have not had any educational value and that they have not tended to promote a better understanding of what the American people are, of what they are doing, or of what they like. Many South Americans, particularly those who have not travelled, have been prompted by these films to form erroneous ideas of this country. It is no wonder, then, that many people in South America think that this is the land of "catastrophes, Rough Riders and divorce." It is absolutely imperative; therefore, that American film producers and exporters benefit by past mistakes and change the type of film that is being sent to So'uth American countries. The ideal that our manufacturers should constantly keep in mind is that their films should be typical of American life and activitj', and should tend to promote a feeling of mutual interest and respect between thi^ country and its South American neighbors. Our manufacturers should consider themselves pioneers in an educational campaign to establish closer relationship between the United States and Spanish speaking countries, and should choose their films in conformity with this principle. What type of films, then, is best suited to accomplish this purpose? There are in the first place the series of so called educational films which despict scenei of animal life, etc. ; the great natural parks, Yellowstone National Park, etc. ; activity of the American people in industry, such as, the manufacture of iron and steel, etc. ; agricultural activities, showing the use of the latest inventions in machinery on model farms ; our great railroads, steamships, piers, customs house activities, institutions of national interest, centres of education, universities, etc. We must keep in mind the fact that New York, although the greatest, is not the only city of interest in the United States, and should send scenes from different cities, affording activities of varying interest. PUBLICATIONS OF THE PAN AMERICAN UNION By Edward Albes, Acting Editor, English Bulletin, Pan American Union. ■a During the writer's connection with the Pan American Union, covering a period of nearly eight years, the two questions most frequently asked him in regard to this unique organization are "What is it forf" and "What does it dof" and it is with the view of answering these questions in- broad and general terms that this sketch has been prepared. First, as to what it is for. The organization was formed with the more or less idealistic purpose of promoting peace, friendly intercourse, good understand- ing, and commerce among the Republics of the western world. To carry out tb:.£ purpose involves the employment of numerous correlated and coordinated branches of activity; and while the purpose may be ideal these activities are preeminently practical. To cover the entire field of the actual work of the organization would require much more than the space allotted, so that only a brief outline of what may be regarded as its chief activities is possible, and the question "What does it do?" can be but partially answered. Recognizing the fact that international misunderstanding is often the result of international ignorance, that commerce is only possible where peace and good understanding prevail, and that peace and good understanding are best promoted among nations by a mutual knowledge and appreciation of one another's good qualities, it is the chief aim of the Governing Board and executive officers of the Pan American Union to acquaint the people of each of its constituent members with the activities, characteristics, cultural status, and general progress of the people of the others. This aim they seek to accomplish largely through the publicity department of the organization and through its work as a bureau of information. In this connection, the leading feature of the publicity department is the illustrated monthly magazine known as the Bulletin of the Pan American Union. It is published in four language editions, viz., English, Spanish, Portuguese, and COMMERCIAL -INTELLIGENCE AND PUBLICITY 361 French, for among the 21 nations comprised in the Union are countries whose national languages embrace these four. These editions, however, are not merely translations of identical contents, but each is specially adapted to its own sphere. For instance, matters that have no particular instructive value in the Spanish speaking countries, or in the Portuguese speaking country of Brazil, may be of great interest in the United States, so that frequently articles appear in the English edition which are excluded from the other editions, and vice versa. Such matters as social customs, commercial usages, simple geographical data, etc., relating to the countries of South and Central America are naturally matters of common knowledge in those countries, but are the very things relative to which the people of the United States need information. Articles dealing with such matters are therefore published' only in the English edition. As an example of recent occur- rence may be cited the series of articles which have appeared in the English Bulle- tin under the title "Exporting to Latin America." Prepared for readers in the United States "by a member of the Pan American Union staff who is an expert on Latin American commercial matters and international trade generally, these articles cover in general terms the fundamental principles and chief bases of one side of trading with Latin American countries — the exporting side. The appeal, there- fore, is to such manufacturers and exporters of the United States who, while perhaps familiar with the factors that enter into the problem of exporting to European or Asiastic countries, are neophytes as far as the other Americas are concerned. Naturally such- articles are unsuited to the other language editions of the magazine. On the other hand, articles dealing with official statistics of the foreign trade of the various countries of the Union are of interest to all American commercial concerns engaged in foreign trade whether they are doing business in the United States or Chile or any other American country. Hence such sta- tistical articles appear in all editions. Again, articles dealing with the cultural status of the various countries form a special feature of the magazine. A series of articles recently appeared in the Spanish, Portuguese, and French editions which dealt with the artistic development of the United States, and briefly covered the fields of music, painting, and sculpture, giving concise accounts of the works of leading artists in their respective spheres. Presuming that the readers of the English Bulletin are familiar with such works of their own countrymen, these articles were excluded from that edition. Many articles, hov/ever, besides those on commercial matters deal with subjects that appeal to readers in practically all of the countries. Such, for example, are articles describing the larger cities of the various countries, articles dealing with leading mineral or agricultural products; accounts of historical and scientific interest; non-technical articles dealing with progress in transportation, including aviation ; sketches showing the present status of the intellectual life and of educational progress in the various countries, etc. In addition to the special articles covering matters outlined above, the Bul- letin gives summaries, in the form of short notes, of new developments in each of the countries under six special headings, viz.: (1) Agriculture, Industry and Com- merce; (2) Legislation; (3) International Treaties; (4) Economic and Financial Affairs ; (S) Public Instruction and Education ; and (6) General Notes. Under these general headings are to be found news items gathered from official and unofficial sources from all the countries. These items cover matters of mterest and important occurrences in the varied phases of development indicated by the general titles. Here again, notes dealing with important events or occurrences ni the United States are included in the Spanish, Portuguese, and French editions but excluded from the English edition, these matters having been covered by the daily press and therefore having lost news value for English readers. In short the aim of the Bulletin is to be a reliable medium of information through which may be had a Ijetter acquaintance and fuller understanding of the culture activities, and general advance in all the complex factors _ of modern civilization, of the countries comprising the Pan American Union. Latin American readers seek such information relative to the United States, while the subscribers to the English edition desire a better knowledge of the Latin repubUcs,_ and it is this demand that the Bulletin seeks to meet in its several language editions. Another feature of the publicity department, and one that has an important part in meeting the demands made on the organization as a bureau of information, consists in the publication in the form of pamphlets of special reprints of certain articles that have appeared in the Bulletin, or of specially prepared matter dealing 362 SECOND PAN AMERICAN COMMERCIAL CONFERENCE with certain commercial information for which there is a general demand. Among such reprints of articles that have appeared in the Bulletin may be noted the series that deals with the leading cities of Latin America, such as Buenos Aires, Rio de Janeiro, Santiago, Montevideo, Lima, La Paz, the City of Mexico, Sao Paulo, etc. Another series covers leading American products such as coffee, rice, rubber, yerba mate, tobacco, cotton, etc., while other subjects covered by similar reprints deal with various mineral products of the Americas. Occasionally series of articles covering a single subject, such as the articles on "Exporting to Latin America," are embodied in a single pamphlet and are dis- tributed gratis among those interested in the particular subject. Another pamphlet designed for distribution in Latin American countries generally, was published in Spanish. It consisted of 40 pages in which were set out the general system of university education in the United States, calling atten- tion to special facilities for higher training in cultural and professional courses, explaining the educational requirements for admission, general courses of study, degrees conferred, and practical information as to expense, etc., relative to the leading universities in, the various sections of the country. These pamphlets were distributed to hundreds of educational institutions and public libraries throughout South and Central America, and did much to attract students from .many of the Southern republics to' the United States. It is estimated that in 1918-1919 there were not less than 3,000 Latin American students distributed among the colleges and universities of this country. Special pamphlets dealing with foreign trade statistics of each of the Latin American countries are prepared by the statistical department of the Pan American Union, and are published as soon as official figures are received from the several governments. Translations of laws having special bearing on trade and industry are made for purposes of free distribution and to answer inquiries relative to these matters. Another form of publicity undertaken by the organization is the furnishing of short, pithy articles to newspapers. These releases to the press cover matters of unusual interest to the reading public generally and deal with a great variety of subjects. If a distinguished official from some Latin American country is ex- pected to arrive in the United States, a brief biographical sketch, often accom- panied by a photograph, of the visitor is sent to the leading newspapers throughout the country. If some new enterprise is started, or a new development of an old industry, or an unusual public work is completed in a Latin American country, a short sketch covering the subject is sent to the daily press in the United States, publicity of this character reaching many more readers than can magazine articles. On the other hand, press releases dealing with special occurrences or events, non- political in character, taking place in the United States are prepared in Spanish and Portuguese and are sent to hundreds of newspapers in Latin American countries. While the subject matter of these releases is usually timely, they do not deal with matters usually covered by cabled news dispatches of other agencies and thus do not conflict with such services. Supplementing these various forms of publications are the activities of the information ^section. Hundreds of letters are received daily in the office of the chief clerk and are segregated and assigned to the various members of the staflE for reply. Many of these inquiries can be answered by previously prepared multi- graphed letters or by the special pamphlets heretofore described. Others require the attention of experts in Latin American trade and statistics, or need special research in furnishing the required information. In this connection, a series of pamphlets containing, general descriptive data in regard to each of the Latin American countries is published. Each pamphlet covers only one country and contains (1) a condensed description of the geographi- cal and topographical features; (2) a short historical sketch; (3) an account of the constitutional provisions and interesting facts as to its government'; (4) an account and brief description of its leading industries and products; (S) the most recently available statistics and analyses of its foreign commerce; (6) a condensed description of its leading cities ; (7) an account of its railways and waterways ; (8) a brief sketch of its progress in education and its public school system. These pamphlets thus cover many lines of inquiry, and are designed to answer such general questions as are usually asked by hundreds of persons in the United States whose interest in Latin American countries is more or less commercial, cultural and general. The foreign commerce sections of the pamphlets are revised each year COMMERCIAL INTELLIGENCE AND PUBLICITY 363 by the statistical experts of the organization, and this feature alone has re«ulted in a large demand for these little booklets. Other sections of the pamphlets are revised as occasion demands. From this mere outline of what the Pan American Union does in its depart- ment of publications alone, some idea may be had of the manner in which the organization is carrying out the purposes for which it was founded. As to the merit and utility of this work — those connected with it may not judge. It may not be amiss, however, ^:o cite an instance that occurred a few weeks ago. A tele- gram from one of the great banking institutions of New York reached the Chief Clerk's desk. It asked for 100 copies of a descriptive pamphlet on a certain country and also 100 copies of the special pamphlet dealing with its capital city. The re- ijuired matter was at once forwarded. Subsequently it was learned that the Gov ernment. of the great republic concerned had applied for a large loan for the purpose of making certain civic improvements in the capital. The officers of the New York banking institution knew of the Pan American Union's publications, and in order to inform their correspondent banks in other sections of the United States in regard to the resources of the country, the municipal government of the city, the character and enterprise of its citizens, the recent civic improvements made, etc., they needed the pamphlets of the Pan American Union. To float a large loan, confidence in the country applying for it, confidence based upon reliable sta- tistics, trustworthy information as to present conditions in the city in which the money was to be expended, etc., was necessary. In order to inspire such confidence among the many financial institutions that were expected to aid in placing these bonds, the Pan American Union's publications were distributed. That is at least some indication that such publications have considerable utility. This single instance is. cited merely because many millions of dollars were involved; many other cases in which the Pan American Union experts have been consulted in regard to national loans for other countries might be mentioned, but in this case so many institutions were involved that personal consultation was impracticable. As stated at the outset, this sketch deals only with the publications of the Pan American Union. To describe its other agencies and activities, such as its great library; its remarkable collection of photographs used for illustrating its own publications and freely loaned to other magazines^ and newspapers ; the propaganda carried on by means of addresses, lectures, etc. ; its unique exhibits of Latin American products ; its features of entertainment of distinguished Latin American visitors, etc., would require a book. Hence the limitation to a mere sketch of one feature of the unicjue institution which has for its slogan — -"Peace, Friendship, and Good Understandmg among all the Americas." ADVERTISING LITERATURE FOR LATIN AMERICA By Dr. Angel Cesar Rivas, Acting Editor, Spanish Bulletin, Pan American Union. Language is without doubt the indispensable means by which we come to know others and by which we make others know what we are, what we can do and what is to be expected of us. It is no less necessary in order to arrive at a comprehen- sion of people with whom we seek to establish relations of any sort. Up to now the chief stumbling block to the progress of Americanism and consequently the development of commercial relations between the United States and the other countries of America has arisen from the difference of language. Commerce is not merely a matter of exchange of products or of credits. An understanding of the people with whom we are to deal, a knowledge of their needs, of their tastes, of their habits, and of their peculiarities is necessary. Likewise, they too require, since in a great part commerce signifies rivalry, that we reveal ourselves for what we are, at least in the large, showing them our strength, our capacity and how we compare with the people of other nationalities. Before buying and selling we must advertise ourselves, not in the attenuated sense that the word has in mercantile or newspaper language, but in the broader ?nd fuller meaning of human relations and of the intercourse of people. It may be said that the need of advertisement is reciprocal, that the work should be shared by both ei^ually, not only by the producer of manufactured goods, but as well by him who offers raw materials for sale. 364 SECOND PAN AMERICAN COMMERCIAL CONFERENCE • To a certain point this is true, but only up to a certain point. The manu- facturer requires constantly raw materials and such he looks for and obtains with little solicitation within or without his own country. It is only necessary that he make his needs known. On account of the difference existing between manufac1?uring industry and extractive industry, whether the latter be agriculture or mining, those devoting themselves to the former have imposed upon them the initiative iti the advertise- ment or the propaganda referred to. The stage of agriculture and mining preceeds the stage of manufacture. In order that a people may arrive, at the latter stage it is necessary that they should first have attained the former, or if not to be able to dispose of the elements necessary to acquire the raw materials not produced on their own soil. Even more, a truly manufacturing people is one that after having- supplied its own needs overflows with its goods into the markets of others. . Necessarily this presupposes an economic status in advance of the agricul- tural or mining status, assuming that through the accumulation or supply of capital and of technical ability there may be created wealth not immediately needed, but which serves as a fund of reserve for -use when needed. In the position that the United States and the Latin American countries oc- cupy economically in relation to each other, it is the former which is called upon to advertise itself, shouldering a double burden for itself and for the others. We say a double burden, because to the end that the United States may occupy' in Latin American commerce, the place which it should have, it is necessary to tell its neighbors of the South what it has and the terms of sale, and must inform its own people what it is that the others need and how to sell to them. For the first part it is essential to know the speech of the buyers as well as the art of advertising. Much progress is being made at present in the diffusion of Spanish and even of Portuguese in the United States, all of which shows without doubt that while the desired end has mot yet been attained the purpose exists. From what has been already done we may conclude without exaggeration that Spanish wilL come to occupy the position in the United States that German occu- pied before the war. This of itself wo'uld be incalculable prOigress and a force of I'.ndoubted value. Thanks to a knowledge of the , language, the people of the United States would find tfiemselves in a condition to know the Latin Americans, to fathom their souls, to appreciate their qualities, to measure their needs, and to formulate adequate plans to satisfy them. At the same time with the acquirement of the Spanish and Portuguese tongues they would be able to make the Latin American see directly and without any intermediary what in reality they themselves are, the ends they seek, and what advantages the goods they fabricate may offer. Catalogues in Spanish and Portuguese are unquestionably good advertising mediums, but on condition that the Spanish and 'Portuguese in which they are written be in feality such. The greater part of the catalog'ues which are sent from the United States to Latin America are in truth filled from beginning to end with Spanish or Portuguese words, but one cannot say that they are written in Spanish or Portuguese. This is not a paradox, for one only needs to read these catalogues to be convinced that, having been translated from some other language, they pre- serve the rules of construction peculiar to the language in which they were originally conceived. The marfufacturer or advertiser in the United States must come to ap- preciate the fact that in order for his catalogues to produce the desired effect in Latin America it is absolutely indispensable that they be ia good Spanish or good Portuguese. In English there is a word which suits well the genius of the people of the United States; it is "efficiency." In treating of catalogues, or of anything else, true efficiency consists in doing a thing as it ought to be done. It is not necessary that the catalogues be voluminous, it is necessary only that they be in- telligible, that anyone may understand 'them. In order to attain the highest grade of efficiency, advertisers in the United States should judge with care those who offer their services as translators and keep always in mind the fact that cheap and rapid work is generally in this field the worst work. In connection with the catalogue, it would be well if associations of manu- facturers and chambers of commerce in the United States would publish weekly or fortnightly well prepared bulletins in Spanish and Portuguese, advertising raw products, fluctiiation of prices, the state of the market, financial and banking move- ments in relation to Latin America and special recommendations respecting the preparation of raw materials from Latin America, which would meet the approval of importers in the United States, and other information of like kind and im- COMMERCLVL INTELUGEXCE AND PUBLICITY 365 pprtanee- Such publications as this would render infinitely good service in the ex- pansion of commercial relations betSveen the United States and Latin America, for, up to now, the commerce of this countrj- with Latin America has been almost exclusively in the hands of New York commission houses. This expansion would be produced by direct correspondence between manufacturer and consumer. This has been of manifest utility to the more important commercial houses of Latin America lor whatever has been attempted along this line has produced the very best results. In respect to newspaper advertising it would be well to discard stereotyped uniformity, especially when prepared with a view to the psychology of the people of the United States. Although -of the same or similar origin, the countries of Latin America have each its own proper -physiognomy shown in all that relates to forms. On this account advertisements should be edited with an eye to the formal peculiarities of each coHmtry, in the country itself, or by persons familiar with the idiosyncrasies of each covmtry. m respect to making known in the United States the commercial and indus- trial activities of Latin America, the state of its civilization, the opportunities offered for the investment of capital, etc., nothing better could be recommended than the practice which has had such excellent results in the last few months of the New York Sun which consists in publishing in its Monday edition two or three pages of articles written by people familiar with the life, the business and the natural resources of the Latin American countries and short miscellaneous notes covering a variety of matters received from well authenticated sources. If this example were followed by a single newspaper in each of the principal cities of the United States the results which would quickly follow would be astonishing. The Sun readers are able to ascertain from the news therein published that not only are there revolu- tions and mutinies in Latin America, but that there exists also a civilization worthy of respect and of study, and an ample field for the commerce, the industry and the capital of the United States. NEWSPAPERS OF LATIN AMERICA By W. p. Montgomery, Spanish-Engl-ish Translator, Pax American Union Staff. The newspapers of Latin America are, generally speaking of a more serious type than are those of a similar class and standing in the United States. They gather their information with the utmost care, always aiming at accuracy and truth, and seldom enter, knowingly or unknowingly, the field of purely inventive, untruthful and sensational news manufacturing sometimes indulged in by some newspaper reporters and newspapers in the United States. The great influence which Latin American newspapers exert over the reading public is, undoubtedly, largely due to the high ideals and lofty aims of their editors, reporters, managers and owners, and to the keen sense of responsibility of all those who engage in newspaper work that theirs is a calling not merely for the purpose of a money remuneration, the paying of dividends or the wielding of political power, but rather for the higher and more ennobling objects of educating and uplifting, mentally and morally, the large mass of their readers. Newspaper headlines in the United States tell the story of the printed matter which follows, frequently rendering unnecessary a careful reading of the text, so that North American business and professional men often only hurriedly scan the columns of the daily press, glancing at the headlines here and there on their way to and from their places of business, while at meals or during some lull in the arduous duties of office, store, factory or other work. An entirely different pro- cedure is followed in the Latin American countries. The Latin American news- papers are read and re-read from beginning to end by a large number of their subscribers. While headlines are used they are as a rule very short and modest and are nearly always confined to a clear and concise statement of the subject under discussion, so that it is necessary to peruse the complete text in order to properly grasp the meaning intended to be conveyed. This encourages and stimulates news- paper writers in using their best efforts in an endeavor to excell in the art of pleasing and correct expression in vividly, brilliantly and truthfully portraying in an elegant and fascinating style such matter as is printed in their columns. 366 SECOND PAN AMERICAN COMMERCIAL CONFERENCE 'While the circulation of Latin American newspapers is not as large as that which generally obtains for the same class of publication in the United States, still the number of subscribers is not a correct index to the actual number of readers, inasmuch as, due to long established custom and to the inherent polite- ness and fine sense of consideration for friends and acquaintances, the Latin American newspaper subscriber passes his paper on to a number of his friends, until often, after going the rounds, it comes back to its courteous and accommodat- ing owner worn, figuratively speaking, threadbare. While this custom of lending one's paper to one's friends may work a hardship on newspaper publishers, in so far as their circulation is concerned, still it is one of the many straws which shows the exquisite courtesy and goodness of heart of Latin Americans, and, helps in circularizing the advertisements contained iii the paper. The daily circulation of Latin American newspapers varies from 1,000 or less in interior points of the different republics to 150,000 for La Prensa in the great industrial center of Buenos Aires. This paper, which was founded SO years ago as a tiny sheet of two pages 21 x 15 inches_j has developed into a great daily of from 24 to 36 pages, 16 x 23M: inches, containing 7 columns each. La Prensa was founded by Dr. Jose C. Paz, deceased, who not only was a great journalist but who also became one of the greatest philanthropists the Argentine nation ever produced. The building owned by La Prensa on Avenida de Mayo in Buenos Aires is one of the landmarks of the Argentine metropolis. The paper has a brilliant literary staff and an excellent cable service. It sells for the equivalent of 5 cents a copy in Buenos Aires and is a great news-gatherer- and advertising medium. The prices charged for advertising vary from. 20 cents to $3.00 a line per insertion. Not only does La Prensa maintain a high standard as a newspaper, furnishing its readers with an exceptionally trustworthy and complete service of foreign and domestic news, but it also maintains a number of complementary in- stitutions for benevolent and educational purposes, all of which are free to the public. Among these may be mentioned its departments of medicine, law, indus- trial and agricultural chemistry, music and free assembly halls — institutions unique in the field of modern journalism and newspaper enterprise. La Prensa is equipped- with the most modern and up-to-date Hoe presses, electrically operated, and uses the latest models of linotype composing machines.. The table inserted below mentions, one of the principal daily newspapers published in the capitals of each of the Latin American republics, together with a statement of the approximate circulation and advertising rates, the latter being subject to change at any time. In most cases large advertisers can obtain special terms on application. Circida- Advertising Bate 1 Country Paper Place Published tion Argentina La Naci6n Buenos Aires 80,000 $3.24 per inch per insertion. Bolivia El Tiempo La Paz 4,000 $19.50 per quarter column 2J^ x 4% in. Brazil Journal de Commercio Rio de Janeiro 30,000 12 cents per line per insertion, 7 point . type. 30 cents per centimeter (0.3937 in.). Chile EI Mercuric Santiago 50,000 Colombia EI Nuevo Tiempo Bogota 6,000 25 cents per inch per insertion. Costa Rica La InformaciGn San Jos6 7,000 25 cents per lineal inch per insertion. Cuba La Lucha Habana 8,000 40 cents .per inch per insertion. Dominican Republic Listin Diario Santo Domingo 4,000 20 cents per inch per insertion. Ecuador El Comercio Quito 3,B00 20 cents per centimeter per insertion. Guatemala Diario de City of Guatemala Guatemala 5,000 25 cents per inch per insertion. Haiti Le Matin Portau-Prilice 2,500 25 cents per inch per insertion. Honduras El Nuevo Tiempo Tegucigalpa 3,500 20 cents per inch per insertion. Mexico ■ El Universal Mexico City 50,000 $1.40 per inch per insertion. Nicaragua El Comercio Managua 3,000 Conventional rates; no fixed charges. Panama Diario de Panama Panama 10.000 25 cents per Inch per insertion. Paraguay El Diario Asuncion • 4,000 $2.54 per month for a space of 1 x 2% inches. Peru El Comercio Lima 25,000 20 cents per line per insertion. Salvador Diario del Salvador San Salvador 12,000 $1.50 per inch up to 3 insertions. Uruguay El Dfa Montevideo 35,000 30 cents per inch per insertion. Venezuela El Universal Caracas 20,000 20 cents per inch per insertion. (1) This list is merely an illustration, space not permitting a complete list of new^apers published. COMMERCIAL INTELLIGENCE AND PUBLICITY 367 To reach the public advertisements should be in the language of the coun- try in which the paper is published, that is to say in Spanish in all of the- republics of Latin America except Brazil, where Portuguese is used, and Haiti where the language is French. If the article is one that can be easily illustrated by a picture a;id short catch words, this method of advertising has often given excellent results. An examination of the great daily newspapers published in Argentina, Brazil annd in most of the other Latin American countries shows that in arrang- ing and classifying the matter contained in these publications, the advertising columns, cables and telegrams, editorial comment and reading matter are con- veniently separated, thereby enabling the reader to more readily find the sec- tion of the paper in which he is most interested and to continue the perusal of same in an orderly, systematic and profitable manner. Some of the newspapers published in that part of Latin America adjacent to the United States, or which have more or less fallen under North American influence in so far as the methods of conducting the business of newspapers is concerned, have adopted display head- lines similar to those used in the United States, as well as a somewhat indis- criminate intermingling of advertising, reading and other matter on all the pages of the paper. A few publications have gone so far as to/ make use of the crudely illustrated so-called humorous sheets, unfortunately so prevalent and popular in the United States, in their Sunday editions. Such an innovation, however, it is sincerely to be hoped will never obtain to any great extent among the attractive, neatly arranged, conveniently classified, ably edited, first-class newspapers of Latin America. A feature of the Latin American newspaper worthy of praise is the section set aside in some of the great dailies, such, for instance, as the Journal do Com- mercio of Rio de Janeiro, for contributions from the public on matters of i:urrent interest, the newspaper expressly disavowing responsibility for ideas set forth in that section, and freely publishing all contributions submitted in proper form and which conform to the rules of the management. This public forum invites dis- cussion and gives everyone an opportunity to state his views. In closing these remarks it is fitting to state that the newspapers of Latin America have made out of that section of the Western Hemisphere some of the most liberal and democratic republics in the world by establishing what may be called an aristocracy, not of wealth, or political influence, or nobility of birth, but of literary attainments. Newspaper writers, authors, publicists, poets are members of this aristocracy, regardless of worldly possessions or accidents of birth, and nowhere are they more honored, respected and loved than in Latin America. ■368 SECOND PAN AMERICAN COMMERCIAL CONFERENCE EDUCATIONAL AUXILIARIES TO COMMERCE EDUCATION IN RELATION TO PAN AMERICAN TRADE By Senor Francisco Javier Yanes, Assistant Director of the Pan American Union. (Read at the Afternoon Session of Friday, June 6) It is hardly necessary to repeat the statement so frequently made that good understanding is the basis of mutual respect. For neighbors separated by racial peculiarities, by different languages, the only way to cement that understanding is by their coming together to realize that they must live in a community of thought and ideals, of charity for mutual shortcomings and a fair estimate of common virtues. ^- Commerce and trade, the interchange of commodities and money, while they are powerful factors in the material development and the life of peoples and in fostering their friendly ihtercourse, cannot endure the exigencies of competition^ But the interchange of ideas, the honest effort to understand one another, the knowledge of the history, the higher life, the greater aspirations of other peoples, will necessarily breed respect for these peoples, an interest in their welfare and a desire for mutual cooperation, which will be the foundation of an honest friendship that does not rely on the demand and supply of material needs. And there is no reason why there should not exist among our peoples — ■ since we are all Americans — this sort of union, of friendship, of mutual under- standing, forbearance and respect. In our civil life we have in common our political institutions, which are the bases of our different nationalities ; we have in common commercial interests and the necessity of mutual aid in the develop- ment of our material wealth ; we have in common geographic boundaries, rivers and seas; we have in common historic deeds, great heroes, the conception of democracy and respect for the weak; we have in common the ideals of liberty and equality of rights, to which we owe the birth of our 21 free and independent republics of America. We lack, however, a language common to all to facilitate our intercourse, to do away with misunderstandings, to allay suspicions, and to prevent distrust; we lack, on the material and economic side of our relations, uniformity of methods, legislation and other facilities. We lack a certain mutual respect to bridge over our too human shortcomings and make the road easy to a better, and I may add, more Christian and charitable understanding. You, our brothers of the North, know your own history, your geography, your ponderous statistics, your immense resources, your marvellous growth from a handful of white men to a mighty nation, rich, powerful, hard-working, and until lately somewhat self-centered, because all your energies were bent upon the development of your own resources, the peopling of your vast territory, the build- ing up of your mighty industrie_s — the making of a nation which is today one of the greatest in the world. You have accomplished in half a century — a negligible fraction in the measure of time as applied to the development of mankind — what it has taken the countries of the Old World centuries to do. We, your brothers beyond your southern boundary, have also done our part towards discharging that debt we all owe to civilization and to what I may call 'Pan American culture." That degree of culture, however, while uniform in its intellectual phase, lacks a certain homogeneity in its material aspect. This is due to no fault of ours, but to circumstances only too well known to those who Have made a study of Latin America. From its beginning the history of the once Spanish possessions of America has been fraught with difficulties and hardships, and it has been by dint of perseverance and a romantic love for things that are high, that the intellectual (Jgvelopment of Latin America has attained a degree of cul- ture that in no way can be said to be less than that of the most learned minds of the United States. Material development has been in almost every case impeded by the natural disadvantages of topographic and geographic conditions. Hitherto most of our fancied grievances against each other, our unfounded suspicions, our begrudging acknowledgment of the good qualities of any and all of the other countries, have had their origin in a lamentable ignorance on the part of each race as to what the other really is, what it is striving for, and the manner EDUCATIONAL AUXILIARIES TO COMMERCE 369 in which it faces its peculiar problems of social ind economic life. The history of our respective countries, our geography, our literature, the language of our thoughts which voices our mental attitude, were but little known to each other, in spite of the fact that our peoples are necessarily bound together by many ties. It is, however, most satisfactory to those who have followed the increasing development of true Pan Americanism and fellow feeling, to note the growth of that senti- ment of real friendship and practical mutual helpfulness manifested in the honest desire to know one another better and to. understand the psychology of the other peoples of this hemisphere. There is a growing recognition of the practical im- portance of this enlightened and sympathetic international viewpoint for the export merchant and the commercial agent, as well as for the statesman and the diplomat. In considering more specifically the topic 'Educational and Social Auxiliaries to Commerce," including Vocational Training, Language Study, Exchange of Students and Professors and General Influences, I shall confine myself to certain phases of the subject that have come under the observation of the Section of Education of the Pan American Union, which is in my charge, leaving to those who follow me the presentation of other points of view. About two years ago the Pan American Union established a Section of Education, by the unanimous vote of its Governing Board, and in compliance witlr resolutions on the subject passed by the Pan American Congresses. While the general unrest during the war has been a handicap to the work of the Educa- tional Section, the interest shown both in the United States and in every one of the Latin American countries in the prospect of closer educational relations is most satisfactory, and promises a remarkable development in the very near future, as soon as general conditions become normal. As to vocational training, meaning in this connection, as I take it, commer- cial education, it is gratifying to note the growing realization on the part of educators of the necessity of training men f,or the higher positions in commercial life, as shown by the increasing number of advanced courses in commerce and business administration offered by colleges and universities. Of especial interest is the emphasis now placed on training for foreign service, with particular refer- ence to Pan American commerce. Courses of this kind are rapidly being added to the curricula of the principal universities, and Georgetown University in this city has lately established a separate School of Foreign Service. The same tendency is manifest in the Latin American countries. The Uni- versities of Buenos Aires and Montevideo have Colleges of Commerce, while in other countries there are commercial schools of collegiate rank. Commercial training is one of the branches most frequently sought by Latin American students coming to the United States. An inquiry recently received by the Section of Education of the Pan American Union from Cienfuegos, Cuba, as to the best curriculum for a Pan American School of Commerce is one of the evidences of the growing interest in this subject, as well as the Congress of American Economic Expansion and Commercial Education held in Montevideo last February. That Congress made some excellent recommendations along the line of broadening the scope of higher commercial studies, one of which was the exchange of professors and students between higher institutions of commercial education in the American Republics. As to language study, the Section of Education has not ceased for a day to recommend through correspondence and other means of propaganda the study of Spanish and Portuguese ini the United States and that of English in Latin America. Just how far the study of Spanish in this country has developed, is hard to say, but it can be stated that its progress has been extraordinary, far beyond our hopes. Spanish is now taught in all the colleges and universities of the major type, and in the great majority of minor colleges, besides thousands of secondary schools. It is undoubtedly the most important commercial language for the United States today, and that this fact is coming to be recognized is shown by its being placed on a par with other modern languages in many schools and colleges, while in some instances it has practically replaced German. Portuguese has also been added to the curriculum of some of the large institutions for the benefit of those especially interested in Brazil. With regard to the exchange of professors and students, these are factors of the greatest importance which are receiving especial attention from the Pan American Educational Section. Our correspondence shows a growing desire on. the part of teachers in the United States to spend a year or more in Latin America 370 SECOND PAN AMERICAN COMMERCIAL CONFERENCE and of Latin American professors to come to the United States. The University of Washington at Seattle has had an exchange arrangeinent with a Chilean insti- tution and is planning a similar one with the University of Mexico. Arrange- ments are now being completed whereby Latin American teachers will exchange with those in two colleges of Texas and Wisconsin. The Mexican Government has expressed an especially cordial desire to carry into effect an interchange of teachers, and students witii the United States. As to students, the number of young Latin Americans coming to the United States is increasing daily, to such an extent that we have been unable to obtain an accurate census of these students, but there are probably over 3,000. A recent investigation made by the Young Women's Christian Association has revealed at least 125 women students from Latin America. In this connection it should be said that a very special interest in and cordial attitude toward Latin American students have been shown by the majority of the colleges and universities of the United States, either by offering them special scholarship assistance, showing liberality in the matter of entrance requirements, providing special faculty advisers, or in other ways granting them various facilities. Other agencies are also rendering help to these students. The Young Men's Christian Association has a special Com- mittee on Friendly Relations among Foreign Students which offers its services freely in meeting incoming Latin American students and directing and advising them, also in promoting Latin American student clubs and dormitories; the Young Women's Christian Association has detailed a special secretary for Latin American women students ; the Catholic University of Washington is considering the estab- lishment of a dormitory and clubhouse for Latin Americans in this city. The Section of Education of the Pan American Union carries on with Latin American students an increasing correspondence, conveying a vast amount of information, and undertakes to translate the credentials of Latin American applicants and to arrange for their entrance into the educational institutions they have selected. Through our efforts the University of Georgia has agreed to pro- vide, in connection with its regular summer session, a summer school of English for J;he benefit of any Latin American students desiring such instruction. The number of United States students desiring to go to Latin America is also on the increase, comprising both teachers wishing to take post-graduate courses, and undergraduates, some of whom have the express purpose of fitting themselves for the consular service. The Section of Education has many requests for aid in arranging exchanges of correspondence between schools in the United States and in Latin America. Such interchange is not only of much educational value, but may eventually lead pupils who have become interested in another country to go there for further study. This is, briefly stated, and so far as the Section of Education is advised, the situation in this hemisphere with regard to education and social intercourse as auxiliaries to commerce. In conclusion, I wish to make a practical suggestion which, if carried out, would be of inestimable value to international commerce. The students who would derive most practical benefit from study in a foreign country are those who are preparing for a foreign trade career. Why could not commercial organizations throughout the United States give travel scholarships to the best students in foreign trade courses, thus stimulating interest in this kind of scientific preparation which will one day revolutionize the commercial relations of the Americas? VOCATIONAL EDUCATION FOR THE BUSINESS OF EXPORTING By Dr. Roy S. MacElwee, Second Assistant Director, Bureau of Foreign and Domestic Commerce. (Read at the Afternoon Session of Friday, June 6) The object of education for the business of exporting is essentially and -primarily vocational. Its object is to train clerks who will become managers. The object is to train people how to do certain things, not simply to talk about them. EDUCATIOXAL AUXILIARIES TO COMMERCE 371 This does not mean that a broad cultural background is not necessary or desirable for a jroung man in order to assist him to get on in the business and rise in it. The practical task is to train people to do certain definite things. Joh Analysis as Basis for Planning Courses in Vocational Education. — The relation of commercial education for the exporting or shipping office to the entire subject of education in general may be fixed at the start. Vocational education for an export department job of a certain grade and age is added to the proper educa- tional foundation that a person may reasonably be expected to have at that age. The basis for planning any vocational education for exporting is the analysis of the position that a person of a certain age may be reasonably expected to fill. General Educational Groundwork of Clerks in Exporting Offices. — We look over our office force at home and find the largest number of employees in Group I, em- ployees who come into the exporting office from high school in junior clerical positions. Those who have had the advantage of going to college are exceptions ; their numbers must be increased. In the Ivome office we find that in addition to the army of young clerks of high-school age in Group I, we have Group II, comprising senior clerks and assistant managers who have been in business for several years. They may have come into the business from high school, or from grammar school even, and worked up slowly, or they may have come in as college graduates and have worked up with fewer years in business because of their superior educational equipment. Other things being equal, it is now generally conceded that the person with the college education will eventually catch up to and pass the person with the same ability who has not had this advantage. Confusion arises in comparing men of different natural capabilities. In the home office, then, we have junior and senior clerks, and junior and senior managers. Educational Prerequisites for Foreign Service. — Persons in service overseas constitute Group III. To be sent by the house into foreign service is an advance- ment. The preparation for this service requires more Sian the experience as a clerk, or as a junior manager in the home office, or as a successful salesman. Foreign service for the firm demands all the training in language and knowledge of foreign affairs that will make a man or woman successful as a salesman or a buyer or a branch manager overseas. The special training for this advanced service re- quires the prerequisite of more mature business experience and mastery of technical subjects in school and on the job, and also more mature years. Courses of reading and training for overseas service are, therefore, not of high-school grade, but of university post-graduate grade — even if not taken for credits toward a Ph. D. Under this group of service abroad we must also add the manager and specialists of o division of the home office that deals with the business of a specific commercial area of the world, such as the Far East, Latin America, or Russia. The manager of such a division should have had actual foreign experience in the particular area- The clerks may be trained here at home by proper courses of study. Therefore in reply to our question, "Whom shall we teach f" a job analysis of the entire organization shows us that we have the three groups enumerated: (1) Clerks, (2) Assistant Managers at home, and (3) those persons in service over- seas specializing in certain parts of the world. We are interested here in the study of the South American areas. Managerial Apprenticeship is Shortened by Vocational Training. — It must be decidedly emphasized at this point that this category of clerks, managers and men in foreign service represent a progression in the responsibilities and age of the indi- vidual covering roughly 20 years, and therefore an increase in the breadth and depth of the knowledge of the technique and markets of foreign trade that the individual must have. There is an average age of employee for certain positions, because of the degree of experience and responsibility demanded by the position. For argument, we may say that he enters at 16, is a salesman abroad at 26, and a man- ager at 36. For the boy or girl entering an export office it is usually at least a 20-year pull to the position of manager. Obviously the training for the job will progress accordingly. Yet the object of the training is to cut down the 20 years by substituting vocational teaching for some of the slowly acquired experience. For instance, by studying until 19 or 20 the managerial or foreign-representative rank may be reached at 30 — i net gain of six years in a young man's life in addition to greatly increased efficiency all along the line of progression. The college graduate may start five or six years later, but because of superior training and mental dis- cipline should arrive several years sooner at the managerial grade. His training should cut down the unproductive years. 372 SECOND PAN AMERICAN COMMERCIAL CONFERENCE Studies Essential ta Success in Foreign Trade — Vocational Techmque.-^We now face the question of "What to teach?" Again we have three classes of studies: (1) We have the technique or routine of the practice of exporting; (2) we have market studies by major-commercial areas; (3) we have the language studies. These three must also be kept clearly in mind as separate entities. Technique com- prises two groups of subjects: (a) Those that are elementary and specific and (b) those that are advanced and general. In commercial education we have long since come to the belief that in the beginning of the study there should be a group of practical subjects that will fit the pupil of a certain age to hold the best po- sition it is reasonably supposed that a person of his years and maturity can fill satisfactorily. The first courses should teach him something definite, to hold a definite job. Upon these can be built up all the other courses which take a youth forward in his knowledge along with his advancement in years until he is master of all the details of business administration. Foreign Trade a Profession — Teckmeal Literature in Press. — The mere enumeration of title of single lectures or of courses is bootless for advancing foreign trade education, unless the literature is forthcoming for use as texts. We have long since left the stage and development in 'our foreign trade education when we can give a course on foreign trade. A course in hygiene will not make a physician. Foreign trade is a profession, just as medicine or engineering — not a subject for a course. In order to have enough knowledge on any one of these subjects to induce an employer to hire a man for that particular work, the subject must be gone into in great detail — and in the most practical way possible. From this point of view it has been necessary to create a new literature— and this process of creating a new literature has only started. As the demand increases, we will have practical men cooperating with professional teachers in bringing out the printed results of their careful analysis of various phases of this great profession. Two new manuals for foundation courses are joint products of the Bureau of Foreign and Domestic Commerce and the Federal Board for Vocational Edu- cation. Also, an export manager and a professor have combined to produce a book on "Foreign Correspondence." A book on "Foreign Advertising" is in the mill, and also one on "Foreign Credits," and another on "Packing for Export." Others are in process by one or another agency. The fact that we are trying to being out right at this stage is this — we have passed the day of glittering gener- alities and must now get down to details and concrete studies of the practical facts involved in conducting an export business. Necessity of Foreign Market Studies. — A study simply of the technique or routine of exporting, whether it be letter writing, tariffs, or documents, is not sufficient. The second group we said is market studies. Market studies are important for the manager at home and for the salesman or manager who goes abroad. In the very nature of the subject we are now dealing with a mature student. Market studies present a unique and difficult problem. It is obvious that no one man can know enough about all 'the world to have his knowledge on any part of- it worth an addition to his pay envelope. To make this knowledge valuable- it must be specialized and specific. Obviously the world must be divided in order to make it possible to study parts of it with sufficient intensity to render the knowledge of any area of real commercial value. The Federal Board for Vocational Education is taking the Shipping Board map that divides the world into ten major-commercial areas and several minor sub-divisions, and using that as a basis for the market studies for advanced foreign-trade education. This map gives four major divisions of Latin America, namely, (1)- Caribbean area, including Mexico and North Coast, (2) West Coast, (3) River Plata, and,(4) Brazil. Curricula for Study of Foreign Commercial Areas. — Chiefs of divisions of the Bureau of Foreign and Domestic Commerce are cooperating in the production of commercial area curricula. If a man is interested in a certain part of the world, either in the home office or because of a contemplated sales trip abroad, or because he expects to go out and take up his residence as a representative in a certain com- mercial area, he desires to learn all he can about that area in as short a period as possible. These curricula, therefore, will try to make it possible to give a IS- week intensive training in major outstanding features of commercial areas and the languages that are used there. Thinking in terms of the evening continuation school for those persons who are on the job in the exporting business and therefore EDUCATIONAL AUXILIARIES TO COMMERCE Z7i must do their studying at night, we would have three evenings a week, in which one hour and a half would be devoted to intensive language practice, and the other hour and a half each evening to one of the following three courses: (1) History, government, and institutions ; (2) geography, resources, transportation, population, trade statistics, etc. ; (3) methods and practices of commerce of one trade region. The fixed purpose is to fit a man to go to a certain part of the world and to sell his goods there. Within a short time Mr. McQueen and Dr. Dunn, Chief and Assistant Chief of the Latin American Division of the Bureau of Foreign and Domestic Commerce, will have completed a four course curriculum of study on each of the four major commercial areas of Latin America. These study outlines, for home reading or classroom teaching, will appear this summer in an enlarged and revised edition of Bulletin 24, published by the Federal Board for Vocational Education. The work on study outlines and curricula that I began there so feebly is being forcefully carried on by Dr. Samuel MacClintock, who will tell you more about it. Also other curricula for other commercial areas are coming along. Mr. Eldridge, Chief of the Far Eastern Division is preparing a similar set of study outlines for his special field. Likewise, Dr. Robinson on the Near East and Dr. Huntington on Russia. These and others to come in addition to the many elementary and advanced technical courses outlined in Bulletin 24 present and future, together with the literature underway will make it possible for a number of educational in- stitutions to open broad gauge schools of foreign trade with extended curricula this very fall. Six manuals to serve as texts for six unit courses on the steamship business are also hearing completion. This is a cooperative effort of the U. S. Shipping Board, the Federal Board for Vocational Education, and the Bureau of Foreign and Domestic Commerce. Necessity of Practical Foreign Language Study. — The third leg of the stool is language proficiency. If one stops to think about it and" realizes that there are 10 or 12 important commercial languages, and that in each one of these languages there may be-SO different trade vocabularies, the impossibility of one person study- ing languages for world trade in general, without a particular field in view, is at once apparent. Language education in school from an early age is desirable to form the language habit. I believe that Spanish, Portuguese or French, or both are the most generally in use. But language pedagogy must be radically changed. A live modern language or two should be taught in the schools from an early age, provided, of course, that it is well taught. Such language study is cultural and fundamental, as well as utilitarian. However, when one begins to study a commercial area with the object of conducting business for the firm with or in that area, or of going there soon, the necessity of learning the principal language of that area, to use it in selling goods, is utilitarian. The time is short, the need great, the necessity of ever having to learn that language perhaps unanticipated. This means that one must learn to understand and speak it and to write a respectable letter in it, and quickly. Our evening school students are studying the language to be able to sell goods in It- The language is a tool, not a decoration. It is for a strictly vocational use, not primarily a cultural grace. Nevertheless, the cultural value will not be lost upon your representative if he is a person of culture. When the foreign language be- comes a living thing to him, and he has a cultured background from school or college, and is fond of reading, the literature of that country will be a delight. Role of Educational Institutions in Vocational Training. — We now come to the next, the third, subdivision of our analysis. "Where will foreign trade be taught, and who is going to teach it?" Father Walsh of Georgetown University started a large set of courses last February and is doubling the extent of the curri- culum for this fall. Already he has five hundred applications for admission. New York University, the College of the City of New York, Boston University, Uni- versity of Oregon, University of Seattle, Harvard and several others have ex- panded their curricula to the dignity of a professional training in foreign trade. We are coming on. To aid in this important work your cooperation is solicited. We hope to exchange professors and students in time. We can begin to exchange ideas right now. Schools in Norway, The Netherlands, Peru and Australia have already opened exchange relations. The commercial attaches have been instructed to aid such exchanges. By close cooperation at home and abroad we can develop a liter- ature and training for the important profession of international commerce that will go far toward closer social and commercial intellectual association of the 21 sister Republics of the Americas. 374 SECOND PAN AMERICAN COMMERCIAL CONFERENCE TRAINING FOR FOREIGN SERVICE By Dr. Samuel MacClintock, Federal Boaiuj for Vocational Education. (Read at the Afternoon Session of Friday, June 6.) Training is necessary in order to develop an effective personnel. A country may have goods that are wanted abroad, it may have ships in which to earry them, it may have adequate banking facilities, but unless it has a trained and efficient personnel, it will find its foreign trade unduly burdened by costly mis- takes, delays, and irritating friction. The necessity of adequate training has come to be recognized in related business fields. Not only are the engineer, the architect, and other members of the professions thoroughly trained in the principles and procedure of their work before being put upon their jobs, but likewise the accountant, the business corres- pondent, and the traffic man are all trained in addition to their daily office experi- ence, and to the great advantage of the individual and of business. Similar results can be secured by training, of an adequate type for those in foreign trade. The old-fashioned single course in foreign trade, however, which has heretofore been offered in a limited number of our colleges, is not adequate. Taught by an economist without practical experience, such a course gives, to be sure, an orientation and a background to the student that is well worth having to those who are able to take the long view, but it is not vocational. It does not prepare the young man to go into a foreign trade house and be of any immediate service. Furthermore, few men who take such foreign trade courses in college ever go into the field. It is for this reason then that I advocate foreign trade courses primarily for those already on the job and who need and want a systematic training in connection with the work which they are doing. What is needed in the way of foreign trade courses is first of all simple, practical, vocational training for those already on the job, those who are getting valuable training out of their day's work, but who can be immensely helped by proper organization, interpretation and correlation of all of the material with which they have to deal. As a result of considerable study, I would suggest the following basic of fundamental courses of a vocational character as thus described : (1) Document technique, or foreign trade paper work. This means a study of all the ordinary clerical papers that enter into the routine of a day's work -in a foreign trade office. These papers should be followed through from operation to operation until the procedure not only becomes clear, but their significance likewise. (2) Foreign trade merchandising, or sales practice. Every people has its own psychology, its trade customs, and its peculiar characteristics. In order to buy or sell abroad successfully, one must know what these peculiarities are and how they should be met, how the markets are organized, what are the best agencies and methods for Teaching such markets. (3) Foreign trade correspondence, advertising, and publicity enter to some extent into every office doing foreign trade. Here, again, a knowledge of the particular psychology and trade customs of different countries will enable one to do business there with greater ease and increased efficiency than otherwise. (4) Commercial relations, or that part of general commercial geography which deals with the foreign trade relations of one country and of one geographi- cal area with another. One may know, for example, that copper comes from Peru, but unless he knows where it goes and what Peru secures in return for it, he will have only a limited vision of the broad flow of commercial products. Gathering up drugs in small driblets in backward countries, bringing them together into regional markets and finally into great international markets, constitutes one ex- ample of how the articles of commercial importance enter into world trade and make the great commercial centers and transportation system of our times. As recent events show, these centers and routes are constantly shifting and at times are permanently dislocated, with interesting results to many people and countries concerned. (5) Then we come to the important subject of foreign languages. We North Americans have been particularly negligent in this respect, but there is now a ferment throughout educational circles with regard to teaching the major com- mercial languages which augurs well for the future. It goes without saying that foreign languages should be taught as spoken, as well as written tongues; as living, not as dead languages. Educational auxiliaries to commerce 375 After these rather basic courses which, in their essentials, are needed alike by adults engaged in business and studying during the evening, by college students, arid by fourth year commercial high school students, we come to a further group of studies which may be designated as specialized, or advanced studies. Here I would make the following suggestions : (1) International financing, including foreign exchange, investments, credits, and collections ; (2) Principles of ocean transportation ; (3) Ports and terminals ; (4) Modern tariffs, commercial treaties, export combinations, and customs regu- lations. A still further group of subjects for those specially interested in shipping might be suggested as follows: (1) Steamship traffic management; (2) Mer- chant vessels; (3) Wharf management; (4) Marine insurance; (5) Laws of the sea. Beyond this, we might well extend the study to certain regional, or special trade area, courses such as (1) Latin- America which might well be subdivided, if one has the time and the organized material, into the Caribbean Region, Northern South America, Western South America, and Eastern South America; (2) Western Europe; (3) The Near East;' (4) The Orient; (5) Northern Africa; (6) Southern Africa. The Federal Board for Vocational Education, The Bureau of Foreign and Domestic Commerce, and the Shipping Board are cooperating, to some extent, in the production of material for study where no such material is already in exist- ance ; for example, manuals dealing with the documents of foreign trade and with sales practice will be brought out as government publications before the end of Summer. Likewise, the five shipping subjects just mentioned will be prepared by these joint agencies mentioned, but published by a private firm. The educational institutions — colleges high schools of commerce, evening schools, Y. M. C. A.'s, private business colPeges, and correspondence schools — are all willing and anxious to cooperate in offering the training required for this great field of enterprise. What is needed now is the effective cooperation of business interests. The young man in an office dealing, perhaps, only to a limited extent in foreign trade, frequently does not realize tha great desirability of an adequate training along the lines of the work which he is handling. What he needs is not only a word of encouragement, but continuing help, inducement and urging to study at night or out of office hours. Big men of vision see the necessity of training and are generous in their encouragement. The president of one of our largest concerns, himself much interested in overseas developments, said not long ago that the "rawest products which America sends abroad are not infrequently its own business agents." At the foreign trade convention at Chicago recently, Mr. James A. Farrell, President of the Council, attended the educational meeting one evening in preference to any of the other interesting group sessions and by his presence and statements from the floor distinctly encouraged all those concerfted with the educational work. The Federal Board for Vocational Education, in addition to outlining courses of study and preparing suitable material for student use, stands ready at all times to cooperate with chambers of commerce, groups of business men and educators in organizing worth-while educational work for foreign trade. Such work has already been started in a number of places. And in this connection I would like to offer a practical suggestion for cooperating training. Why not invite, through the chambers of commerce and the universities located in at least all of our important foreign trade centers, a number of foreigii students to come and study part-time and work part-time in our business establishments. This will establish a knowledge of customs, familiarity with the language and people, and a ready sympathy which is hard to obtain otherwise. And let me say tliat this plan, I understand, will be put into opera- tion this Fall at the University of Washington, where some twenty-five or thirty students from China will study and work in Seattle during the coming year. Needless to say, such an arrangement should not be one-sided, but similar arrange- ments should be worked out for our American students to go abroad and do likewise. 376 -SECOND PAN AMERICAN COMMERCIAL CONFERENCE THE VALUE OF THE CULTURAL ELEMENT IN LATIN AMERICAN TRADE By Dr. W. E. Dunn, Assistant Chief, Latin American DavisioN, Bureau of Foreign and Domestic Commerce. (Delivered at the Afternoon Session of Friday, June 6) One of the most serious mistakes that can be made by business men of the United States is that of not taking into consideration what might be called the cultural element in their commercial dealings with Latin America. This element is perhaps of greater importance in transacting business with the countries com- prised in that field than is the case with other portions of the world. This is not because Latin Americans are sentimentalists, theorists, or dreamers, for the fact has been brought out many times during this Conference that for integrity, shrewd- ness, and general Business ability they cannot be surpassed by any other peoples on the face of the earth. No, this statement is true because the average business man of our neighboring republics to the southward is greatly interested in the cul- tural side of life, and appreciates most keenly similar tastes on the part of others. The business man of a certain type will probably take issue with me, and say that I am not practical. He will say that provided the Latin American merchant gets the goods he wants at the aiost favorable prices, little will he care whether the seller of thpse goods knows whether his country was discovered and settled in the sixteenth century or the eighteenth ; whether it was a portion of the viceroyalty of New Spain, of Peru, of La Plata, or of New Granada; whether the national hero is Bolivar, San Martin, ■ Artigas, Belgrano, Hidalgo, or some other of the great men who were responsible for the independence of their respective regions. But that is a mistake ; these facts are important. Of course, no one can deny that the material side must be predominant in any b'usiness transaction, but tliat does not mean that the finesse of business is not also of great moment. What American business men need in this new age on which we have entered is a broader way of looking at things, a more sympathetic attitude toward foreign peoples — in a word, we need to acquire the international point of view from the ground up. Until we get this larger perspective, we shall continue to be the more or less provincial nation that we have Undoubtedly been in the past — a nation absorbed in its own needs, and unappreciative of the psychology of those to whom they must look for aid and cooperation and friendship in the future. The question now naturally occurs, how are we to acquire this larger per- spective,, this more intimate understanding and sympathy with our Latin American neighbors? How are we to make of practical value this cultural element to which I have referred ? The answer is simple : By making » careful study of the history, political heritage, institutions, culture, and languages of those republics. The syllabus whirfi Dr. MacElwee and Dr. McClintock have just described wilL furnish a practical instrument and guide for such study, and there are many excellent in- stitutions which offer coiurses for that purpose. I have yet to meet a man or woman who has made a close study of Latin America who has really become acquainted with Latin American people, who did not cherish a feeling of cordiality, friendly sympathy, and appreciation for them ancl the countries in which they live. Before the United States can attain to the highest success in trade with Latin America, we must develop this feeling of mutual understanding. We must find some common footing, some mutual ground of interest other than that of trade and barter. We must become real friends, and not content ourselves with remaining mere business acquaintances. Ask any well-informed Latin American business man what North Americans lack most in order to achieve complete success in their commercial dealings with Latin America, and almost invariably he will reply, the personal touch. And this personal touch, in the sense that they mean it, cannot be obtained satisfactorily until there is some appreciation on the part erf our business men of the great heritage of Latin America, and a willingness to accord to those countries their full share of the glory to which the deeds of their forebears, as well as their own achievements and aspirations so justly entitle them. I would say, then, to the business man who desires to develop to the fullest extent his trade with Latin America, study something more than the technical points connected with yotir particular line. Endeavor to acquire a cultural background. Make your customers in Latin America your friends in something more than a EDUCATIONAL AUXILIARIES TO COMMERCE 377 business way. We in the Latin American Division of the Bureau of Foreign and Domestic Commerce, fully recognize the necessity for progress along these lines, and our advice to those who are interested in Latin American trade is this : Get the concrete, practical information that is essential for the promotion of your ex- port business, but by all means do not neglect the larger aspects of commerce. If you have the right sort of background the little everyday facts will be easily taken care of, and the blYinders which have often been characteristic of our foreign com- merce will cease to be perpetrated. Do not ignore the cultural element in Latin American trade ADMINISTRATIVE DEFECTS IN LANGUAGE TEACHING By J. Moreno-LacallEj Assistant Professor of Spanish, United States Naval Academy, and Dean of the Spanish School of the Middlebury College Summer Session. (Delivered at the Afternoon Session of Friday, June 6) Mr. Chairman, Ladies and Gentlemen: It is not necessary for me to dwell upon the importance of languages in foreign trade. All of you know that language is the key to the psychology of the people with whom one deals, as proven by the success invariably achieved by the Germans in whatever foreign countries they traded. Certainly while their aims were questionable their means were most effec- tive and more worthy of a better end. No German ever went to a foreign country without previously learning the language, and once in the country he adapted him- self — at least apparently — to the customs, habits and tastes of the native. Speaking of the importance of Spanish to the North American business man, we must not forget that Portuguese is also necessary. I would advocate, especially in the larger cities, the organization of courses of Portuguese along with the Spanish courses. Yesterday Senhor Sampaio, the enterprising Br?.zilian Consul in St. Louis, brought out the fact that no Brazilian individual or firm would accept a letter written in SpanislT. I am not going to speak to you about the method or technique of teaching langiuages; that would not be germane to the subjects under discussion. I shall confine my brief remarks to bringing to your attention some deficiencies of a purely administrative nature which seriously hamper the teaching of modern languages in our public schools and actually defeat our aims. I appeal to you because I do not doubt that you can do a great deal to remedy these defects by exerting your in- fluence in your respective communities! and by starting^ an active and systematic campaign for the purpose of awakening parents and school officials to the realiza- tion of the transcendental significance of language study as an essential part of the education of our boys and girls. The first serious obstacle tc effective language teaching is the excessive num- ber of pupils under one teacher — a very common occurrence, in fact the rule, in the larger cities, in many of which the average 'number of pupils per class varies- between thirty and forty. I know of cases where -the number of pupils in a room is over sixty, one-half of whom have to stand up throughout the period. Those of you who have had experience with some foreign language or other will agree with me when I say — as all language teachers do — that there is no school subject that requires as much individual attention as language study. In point of individual instruction it is no exagigeration to compare the teaching of languages with the teaching of piano, for instance. Certainly no parent would ever think of letting his child study piano in a class where there were, say, thirty pupils all under one single teacher. He would think it preposterous; but he never stops to consider that in order to learn Spanish or Portuguese, or any other language his child must have the same individual attention that is needed for piano instruction. The second deficiency, closely related to the first, is the lack of language teachers, the most serious result of which is that of overworking the teacher. Throiugh my summer school for teachers for Spanish I have come in personal con- tact with hundreds of teachers from all over the country, and I know that a great number have as many as thirty-five hours of teaching per week, and not a few of them have to teach two or three other subjects besides Spanish. To these hours of teaching you must add the hours of office work out of recitation periods re- 378 SECOND PAN AMERICAN COMMERCIAL CONFERENCE quired of most teachers, work such as preparing the lessons, correcting exercises and examinations, keeping records, etc., etc., etc. (and I could, without distorting facts, add two or three more et ceteras). But this is not all. There is yet to be added the hours of study and the classes which teachers have to attend in pursuing their post-graduate courses during both winter and summer. Really, no comment is necessary. But, I must say this: that it is evident that some school boards do not regard teachers as human beings. What results can you reasonably expect of even the best and most enthusiastic teachers if they are overworked? How can Spanish be effectively taught if the teaching is done by a teacher, who, through no fault of hers, is fagged and worn out? Turning now to the third administrative fault, we find that in addition to being overworked, public school teachers are underpaid, even in some of the larger cities. No wonder that many of the language teachers are abandoning the profession for more lucrative fields. Specially in the case of Spanish teachers the situation is really critical. The increase of pupils of Spanish has been so rapid and so large in the last three years that the demand by far exceeds the supply. In many schools no Spanish can be taught because no teachers are to be found. Add to this the fact I have just pointed out — the loss by resignation of many of the best teachers, and you can get an approximate idea of the seriousness of the situation. The fourth shortcoming, a very vital one, is that the course in languages in most cities — two or three years — is entirely too short. No practical results can be "accomplished thus in a subject which requires so much drill. Just compare this with the number of years assigned in some European countries to language study, which varies between six and nine years. As remedies for these defects I would recommended that : (1) Lan^age classes in the public schools be limited to a maximum of fifteen pupils; (2) Teachers should not be required to teach more than twenty recitation periods per week (it goes without saying that to achieve the above two aims it is necessary to provide for a larger number of teachers) ; (3) Higher salaries should be provided along with a systematic scheme of promotion and retirement (pen- sions) ; (4) the junior high school system should be adopted in all cities of the United States so that language study may be begun in the grades, two or three years earlier than at present. It is up to the business men of the country to make parents, taxpayers and school authorities realize that the knowledge of languages, especially Spanish and Portuguese, is a most valuable as well as indispensable element in the educational equipment of our future citizens. When that realization comes the evils I have mentioned will be overcome and then the teaching of languages will be done effectively for commercial as well as for other purposes. EXCHANGE OF STUDENTS AND PREPARATION FOR LEADERSHIP IN PAN AMERICAN TRADE AND TRADE RELATIONS By Dr. H. E. Bard, Secretary^ Argentine-American Chamber of Commerce, New York. (Read at the Afternoon Session of Friday, June 61 During the last half decade great progress has been made along several of the lines suggested by the topic under discussion. Students from the other republics have been coming to our colleges and uni- versities in rapidly increasing numbers; a beginning has been made in the ex- change of teachers ; and in a few cases successful arrangements have been made for the exchange of professors. One of the most important educational phenomena of the period is the changing attitude in university circles in the United States towards the teaching of Spanish and Portuguese, and the increased demand for these languages in both secondary and higher educational institutions. These languages are gen- erally considered today on a par with other foreign languages, which was by no means the case a few years ago. As a consequence of this there has come also a more satisfactory recognition of credits for studies pursued by Latin American students in home educational institutions. EDUCATIONAL AUXILIARIES TO COMMERCE 379 It is now as easy for a student from one of the other republics to secure entrance in one of our colleges or universities as it is for one of our own students. The problem of vocational training for commerce in the foreign field has received extraordinary attention during the last three of four years, and much has been accomplished as will have been gathered from what has already been said before this Conference. But, after all, the greatest and most important achievement, perhaps, of this brief period is widespread public recognition gained for these things. Not so very long ago we listened in vain to hear from leaders in business or urfiversity life some word of recognition of the value of Spanish in the field of Pan Amer- ican commerce, or of the need of thorough vocational training together with ade- quate cultural preparation. But this recognition now is complete, and there re- mains only the more interesting problem of constructive work. There are just two things in connection with the subject that I would wish to emphasize which have not been given all consideration deserved, and these two things might be accomplished in a large measure by a single process. One of th&e is the tendency yet too strong to places too exclusive em- phasis on what may be regarded as the intermediate phase of vocational training in relation to foreign commerce, and insufficient emphasis on the importance of the broader training which fits for leadership. The other thing is the one-sided- ness of the so-called exchange of students. If something could be done to en- able a satisfactory number of American students to pursiie advanced studies in the universities of some of the other republics this would no doubt greatly en- courage the broader preparation requisite for leadership and in itself at the same time contribute effectively towards better understanding and close friendly re- lations, which is the chief end of Pan Americanism. While students from the other republics studying in our higher educa- tional institutions are now numbered in the thousands, scarcely a single Amer- ican student has so far sought to continue his studies in a higher institution of one of the other republics. It is worth-while to seek why this is so. A too general ignorance of the advantages to be gained is undoubtedly one of the reasons ; but not, it is believed, the most immediate and direct ob- stacle. The cost also stands in the way, and -should be overcome to some con- siderable degree. But, the real explanation lies more especially in our system. It is the all-controlling influence of the higher degrees. Few American students pursue studies who are not candidates for a higher degree, and it is uniformly expected that the studies pursued will be credited and count towards securing such degree. There are as yet no provisions by which one of our students might pursue studies in a university of Argentina, for in- stance, and receive credit towards a degree in one of the universities of this country. There is still even a strong feeling against allowing such credits. If provisions were made in our universities by which candidates for higher degrees might spend one or two years in one or more universities of South America and have their studies credited towards a higher degree here, the same as if pursued in an accepted institution in this country, it is practically certain that many of these candidates would soon be found taking advantage of such provisions. After spending the first year, or possibly the first two years, of his can- didacy for a higher degree in a university here, what better could a student do than to spend one or two years in further study and research in one or more of the more important universities in South America? After a year of "graduate study in one of our universities a student is supposed to have become master of methods of research and to have the subject of his dissertation well in hand. If this subject lies in the field of Pan Amer- ican commerce or Pan American relations of any other character, and there arc many subjects for dissertations in this field, one or two years at one of the uni- versities of South America would be of the greatest possible value, from the point of view of scholarship alone. But the privilege of living the life of a student at such university centres as there are in South America will be of equal or greater value. Contact as students with the future leaders of Latin American thought and activities; mas- tery of a foreign language; familiarity with social customs; and some personal 380 SECOND PAN AMERICAN COMMERCIAL CONFERENCE acquaintance with social like of the peoples of the other republics thus gained could not but prove to b? assets of inestimable value whatever might be the field of future work of the student. The influence of our own people -of one hundred or more students return- ing each year from study as regularly matriculated students in such universities as those of Buenos Aires, Santiago and Lima, for example, would be greatly beneficial, and would contribute effectively toward better understanding between our people and the peoples -of the other republics. The opportunities offered for graduate study or research work in the uni- versities of Latin America need to be brought more effectively to the attention of professors and faculties of our universities, provisions as suggested should be promptly made, and students be kept informed relative to these opportunities that they may be encouraged to take due advantage of them. Work in this direction would, as already suggested; relieve the matter of exchange of students of its onesidedness, and at the same time encourage, as perhaps nothing else could, the broader preparation requisite for service and leadership in Pan American affairs, whether in commerce or other field of in- terest. PAN AMERICAN COMMERCE AS A CAREER By Philip L. Green, of New York. Mr. President and Gentlemen : — The Second Pan American Commercial Conference is no doubt the most noteworthy event in the history of modern commerce. The facts we learn and the opinions we present here, will cause a true Pan American Union, a union of ideas, a composite commercial opinion of the Western World. It is no longer a question whether or not we desire Latin American trade. The war has taught us the value of Latin American markets. The question be- fore us, is how to obtain, in normal times, the commercial supremacy so acci- dentally achieved through abnormal war conditions. • A ravished Europe is not necessarily a commercially crippled Europe. Even at the present moment, Eu- ropeans are planning for the recovery of Latin American markets. It is" there- fore a question of comparative efficiency and preparation. Our Latin American colleagues in this conference are more ably fitted to relate to this gathering, some instances of our comparative inefficiency in so- liciting and attending to our export business, for they were the victims thereof. The efficiency standard will, and is, in fact, being elevated, as our merchants and exporters realize that the Latin American market is a precious one. Fur- thermore, the opening of branch banks in Latin America, under the Federal Reserve Act and its amendments ; and the turning over of shipping facilities for export, 'will make exporting a- less expensive proposition for all concerned, thus aiding commercial intercourse with Latin. America. However, we are not seeking orders alone. The world is so large that any firm can obtain orders. We' want a permanent, safe business, based on confidence, efficiency and preparation. If is necessary to have a thorough un- derstanding of our business, from the time our salesmen are sent on their mis- sions, up to the time we discount our drafts and receive payment for orders. Among the things we must know, in order to obtain and retain Latin American commerce, are languages, trade conditions, geography, customs, history, laws, traits, commerce, transportation, packing, insurance, shipping and finance. You see therefore, gentlemen, that Latin American commerce is no easy task. It is a profession ; and as such, requires a thorough professional trainini?. It should be made a career, worthy of the name and financially attractive to the well-trained young man. In England, Germany and France, it is not an un- common thing for a young man to speak several languages, to know Latin American countries as he knows his own, to be thoroughly conversant with in- ternational, mercantile and marine law, export practice, geography, customs, law«, government and history of the Latin American countries ; and to be thoroughly .sympathetic towards Latin Americans in general. In recent years, we too have taken some wonderful steps in this direction. EDUCATIONAL AUXILIARIES TO COMMERCE 381 All American colleges with few exceptions offer courses in Spanish. Ac- cording to latest information, Portuguese is being taught at Yale, Notre Dame, Boston, Harvard, Cornell, Columbia, Virginia, Wisconsin; and at Simmons Col- lege at Boston. Latin American history and cognate subjects are being offered at Virginia, Harvard, Yale, California, Wisconsin, Illinois, Columbia and Penn- sylvania. Many of these institutions have their Spanish Clubs, Pan American So- cieties and Latin American Clubs. Even in the high schools, progress has been made in Pan American re- lations. Through the unselfish and high-minded cooperation of the Chairman of the Modern Language Department of flie High School of Commerce, of New York City, Dr. Edwin W. Roessler, there was founded two years ago, the first Spanish magazine ever to be pubhshed among students of the United States of North America. In the same school, there has been existing for the past eight years, a Spanish Club, under the direction of such men as the ever industrious Mr. Austin E. Spear and Dr. Manuel Barranco, at present Minister of Education in Mexico City. One of the pioneers of education in commercial geography, foreign trade and practical exporting, is Mr. Leslie Brewster Smith, who is at present extending his course to two years. Hundreds of persons could be mentioned who are engaged in the great work of training our future business men. These courses are very beneficial, but will never make a career out of Pan American commerce or really supply the need for trained men unless they are properly co-ordinated. Such co-ordination Gould be obtained by organizing a Pan American Student League, to consist of student organizations in every university, high school and college. The object of this organization would be to present in convenient form, the valuable but now rarely used information which is being compiled by existing organizations, to foster a genuine Pan American interest among the students and to organize a propaganda for thor- ough and uniform preparation for Latin American commerce. This is the only way! to make it a career. It is impossible to obtain $500,000,000 worth of Latin American business by employing men who have just discovered that they are interested in the subject. The men who take care of this important business, must be carefully trained in their line, in the same way that doctors are trained in medicine or surgery. They must be men who have made it their business to specialize in this newest and greatest of professions. Of course, not being an educator, I can only present these suggestions from the standpoint of one who has been in the Pan American business long enough to observe that our commerce could be improved greatly by employing thoroughly and uniformly trained men; and it is for this reason that the idea of a Pan American Student League has suggested itself to me as the best means for giving us men who come prepared to battle and win in their chosen ca- reer — Pan American Commerce. REGARDING OPPORTUNITIES FOR YOUNG MEN IN LATIN AMERICA By William A. Reid, Trade Adviser, Pan American Union. Whether it is wise or unwise for the young man born and reared in the United States to partially close his eyes to the opportunities within his native land and seek business connections that demand his time over the seas is a ques- , tion that he alone must settle. Much depends upon circumstances and the incli- nation of the individual and also whether he goes forth on a special mission of short duration or to make a permanent home. It may be detrimental to the United States if vast numbers of her young men, who in very recent years have imbibed the spirit of unrest, should elect to scatter further to foreign lands for pursuing their life work. On the other hand, "the shuttle of fate has woven us into the web of the world," and there are foreign demands and opportunities today that have not existed in the past. Probably more citizens of the United States are engaged in trading with the several nations of Latin America than at any former period, and certainly at no other time could so many young Latin American students be found in edu- 382 SECOND PAN AMERICAN COMMERCIAL CONFERENCE cational institutions of this country as is the case at present. If peoples of the Americas have not been introduced, the tendencies of the times are undoubtedly drawing them toward acquaintanceship. With 15-day voyages in prospect from our eastern cities to Buenos Aires and Valparaiso and quicker time to interme- diate ports and air services assuming tangible form, the three Americas are cer-- tainly in closer personal contact than ever before. Many young North Americans, however, mistake their closer business re- lations for specific rather than indirect calls for their services; they appear dis- appointed when informed that in South or Central America there is only slight demand at present for additional business and professional workers from the United States unless they have capital for investment. The young man fails to remember that the progress of Latin American nations, like all others, has been seriously handicapped and many industries lie dormant or abandoned owing to the eflfects of the great war; and that abnormal conditions have not yet passed. Furthermore, it should be remembered that most enterprises of Latm America financed by domestic or European capital prefer to give employment largely to natives of the respective countries or to Europeans. Ihese young men are accus- tomed to work for smaller salaries than men . of similar ages and experience readily command in the United States. Again, Europeans more easily adapt themselves to Latin American customs and characteristics than do those from the United States; and they are as a rule better linguists and are also willing to live more economically. Therefore, unless one's desires are merely- for experience, it is not advisable to seek a position^in Latin America in the service of native firms or European corporations. One of the best courses for a well qualified man, and the word qualified hat a strong bearing on future progress, is to become associated with some United States corporation engaged in Latin American Enterprise. By actual observation we have ascertained that of the hundreds of men who visit or write to the Pan American Union for information relative to securing positions in Latin America, a very small percentage have an idea of the methods of procedure or of the true facts upon which rest the chances of employment. They have in numerous cases been led to believe that it is only necessary to let it be known that their services are available and they will be quickly engaged. News- paper and magazine articles, often written by those who have never seen the countries of which they speak, have painted glowing, alluring and misleading pictures. It is quite true that in each one of the twenty Latin American Republics there are good opportunities for the investment of capital, the building of enter- prise, the production of food and raiment for the densely populated countries of the world. But the individual with limited means and the corporation admit of no comparison. The latter with uiilimited funds is in a position to make its own conditions while the former must accept whatever conditions exist — he cannot change them. In a large measure one may study his own chances — feel his way, so to speak — by watching the movement of capital. But many young men tell me they cannot keep tab on what our financiers are doing. To bei sure, capital often moves mysteriously; but there is power in the press, and press clippings are within the reach of every young man. Spend a few dollars for a hundred clippings bear- ing on the specific line of work in which you are interested. If you are an engineer seeking employment you may be confident that you will find the name and address of contractors or builders if you peruse carefully the clippings from many papers. Have you ever considered the fact that numerous banks and other corpora- tions interested in Latin American development publish weekly or monthly journals or house organs? Here again is another medium for keeping in touch with the movement of capital. The house organ tells of the coming and going of its officials and employes, carries their pictures and is more or less a general sum- mary of activities. As typical examples we have the Americas, the Dodge Idea, the Guaranty News, the Grace Log, the "N. C. R.," the DuPont News, and scores of others which anyone may find in first-class libraries or chambers of commerce all over the land. Read them and then get in touch with people who are doing the thing that you would like to do, or are engaged in a line of work for which you are peculiarly fitted. Read the Daily Commerce Reports of our own government. The United States consular force all over South and Central America has been growing and EDUCATIONAL AUXILIARIES TO COMMERCE 383 improving in recent years. The reports of these officials are highly interesting and instructive and have been of inestimable value to the corporation seeking fields of labor and to the professional and business man who wishes to obtain employ- ment. Closely allied with official reports are the numerous trade and professional journals scattered over the United States, which chronicle the movement of capital, of exports, imports, and other subjects, which have a bearing on business openings. During the last five years branches of numerous United States banks — about two score I should say — ^have been placed in the larger cities of Central and South America and the West Indies. It has been my good fortune to visit about two-thirds of these banking establishments and in each of them I have found a sprinkling of North American banking men. In connection with United States banks in Latin America, no doubt, there will be a gradual demand for additional clerks, Spanish-English stenographers, bookkeepers, accountants, and other employees from this country. In fact, several of these banks are now train- ing young college men for work in banking. The course is partly in college and partly in practical foreign and domestic banking as practiced in the parent estab- lishment. After being fitted, so far as early training is possible, these young men are sent out to different banks in Latin America. Their salaries are at least suffi- cient for a living or a little more which is about all a beginner could expect. In these establishments we also find, a number of natives, who, naturally; will be permanently employed to popularize and give local color to the institutions. Numerous French and English men are also employed in the North American banks. Some of these organizations have employees known as commercial attaches, and as indicated by the name, their duties are somewhat different from those of a strictly banking nature. Exporting and importing are closely associated with some of our new banks in Latin America which field also offers opportunities along lines which we might term contributory services. According to my observations, the largest and one of the most inviting fields in Latin America is for the traveling salesman and the traveling buyer. We must remember that the twenty nations have products to sell, and these commo- dities are multitudinous in number. Latin America's foods, rubber, minerals, lumber, medicinal plants, and a hundred and one other raw products are needed in all of the great manufacturing nations and must find larger markets in order to provide their producers with funds to purchase a motor car, a sewing machine, a cash register, a safety razor, a locomotive, an electric cook stove, or in fact, the many modernizing devices that manufacturing nations are placing upon the market. There must be a fair exchange-;-no one-sided commerce. A close study of statisticaldata, which are available to any young man, will show the raw products in detail exported from each Latin American country; on the other hand, such figures also indicate the goods annually imported into each republic and the nation that supplies these needs. So I would say, study statistics to know what is saleable or purchasable in any given nation. It must be under- stood, of course, that to meet full success the salesman going to Latin America should have at least a speaking knowledge of the Spanish language, and if destined to Brazil, it is wise to know Portuguese. If one has had no experience in Spanish speaking countries it might be well to first visit Cuba, Porto Rico or some other nearby country where ' Spanish is used. Try your hand in buying or in selling. This personal contact will be worth more to you than the reading of the best book on salesmanship in existence. The experience, slight as it may have been, will have opened your eyes as to customs, characteristics, habits, business methods, etc., of Spanish speaking peo- ple; and the same experience will be found useful in dealing with somewhat similar conditions of other Latin American countries. It will also be useful in attempting to find employment as a sales representative of some United States firm. A very large number of young men, especially those from our western states, show a decided tendency to embark in stock raising and agriculture in South America. They have read of vast pampas and virgin lands over which the cowboy tends the herd and where the modern tractor is beginning to turn the soil. Indeed, the lure of the pampa is strong; but let it be remembered that in a majority of^cases it is the big corooration rather than the individual with limited means that has succeeded there. Operation on a large scale offers much, but small scale development is yet in its infancy in the southern continent. A few United 384 SECOND PAN AMERICAN COMMERCIAL CONFERENCE States corporations, like the one which recently acquired IS miles or more of land along the Paraguay River, are developing cattle lands and other industries in a vast . interior region. From time to time such enterprises have a few vacancies for men suited to their activities or who have a small capital and are willing, let us say for instance, to start the raising of hogs. The latter are needed in con- nection with the slaughtering and canning industry operated by the company to which we refer. It is this connection or in the service of such corporations, rather than "going it alone," that best opportunities in stock raising seem to exist. Of course if one possesses capital, the outlook is different and conditions altered. In most Latin American countries the temptations to intemperance are, ac- cording to my observation, rather greater than in North America. In smaller cities public amusements are limited ; the Latin's hours for sleep begin much later than is customary in the United States-, and the hours for commencing the day's labor are correspondingly later. Amusements are prolonged far into the night and it times hilarity is most pronounced. In the gay Paris of South America, Buenos Aires, one sits at the open air cafes along the Avenida de Mayo; during meals everybody drinks domestic or imported wines and liquors. Music is to be heard on every side and business for the time is forgotten. Some can stand this gayety, others cannot. It is a well known fact that many English-speaking people, if they are not very careful of their habits, deteriorate after some years residence in tropical or semi-tropical countries. Whether this is caused by climatic conditions or from isolation from home and friends I cannot say, but I firmly believe the statement which was first made to me by a successful Englishman who had spent thirty years in the tropics ; I have seen the statement verified again and again. Outside and away from the larger Latin American cities the country is still in the making and railways, mining operations and other large commercial enterprises that are penetrating interior regions are followed by a crowd of laborers and adventurers as well as by the stable man of business, and as the former classes so far exceed the latter in point of number, the rough element in popula- tion is very apparent just as it was in our own western development. It is into the midst of such society that the educated young man comes for the purpose of aiding and directing the trend of commercial and industrial progress, and woe unto him if his character is not sufficiently moulded or is too weak to withstand the temptations that constantly prey upon him. He is away from family and friends, mails from home are few, and his whole environment tends to dis- sipation. Such experiences are but crucibles, and often there emerge therefrom young men of character, nerve, strength and ability that challenge the admiration of the man who has never wandered beyond the confines of his state, and who has lived the quiet life where strenuous endeavor and big reward are unknown. In conclusion, let me suggest to the young man who feels dissatisfied with present prospects in the United States and whose ambition urges him to consider the possibilities of South or Central America or the West Indies as fields of business usefulness, that there are at least three different courses that might be worthy of consideration; and each one is beset with trials and difficulties, as in every walk of life. To engage in business with these nations does not necessarily imply permanent residence away from one's country. To practice electrical Engi- neering in Brazil or Chile, for instance, the engineer is expected to reside near his field of labor; the selling of United States goods in Latin America presupposes periodical travels throughout those republics, while the importer of raw products " from any or all of these countries may reside in any part of the United States. Thus, one may in a measure, choose the line of work best suited to his training and inclination anid also decide for himself whether he will travel or maintain a fixed abode at home or abroad. COMMERCIAL FEATURES OF THE LIBRARY OF THE PAN AMERICAN UNION By Charles E. Babcock, Acting Librarian, Pan American Union. For the use of importers and exporters, manufacturers and business men, students, writers, investigators, travellers and all persons interested in Latin America there is, in the Pan American Union, what is considered the most com- prehensive special library of Pan Americana in the United States. This collec- EDUCATIONAL AUXILIARIES TO COMMERCE 385 tion is for free consultation, during regular office hours, and every facility for its use is given by the attendants. Special reading tables are provided for study, . and such aid in locating required data as needed is given. Numerically, the collection contains over 40,000 volumes and pamphlets, ISOO maps, 110 atlases, 22,000 photographs, 1500 lantern slides, and receives over 1200 daily, weekly, or monthly periodicals. Its index cards number over 150,000 and are used to answer practically any question which may arise in the study of Pan Americanism from any point of view. For every American Republic the books include, government reports, laws, treaties, description and travel, history, geography, guide books, directories, com- merce, transportation, sociology, literature, education, mining, agriculture, biog- raphy, foreign relations. An important feature of each country is the bound daily newspapers, extending in some cases over a period of ten years, bound sets of the daily official newspapers, and sets of magazines issued by government depart- ments, commercial organizations, and of a general character. To keep this col- lection as nearly complete as possible, the Library is in constant correspondence with the various Embassies and Legations, book dealers, authors, libraries and others throughout all Latin America. The effort has been so successful that in many cases complete collections are on file of the laws, reports, official newspa- pers, and scientific or literary series. » The delegates to this Conference will appreciate the extent of this collec- tion when I state that it is a daily occurrence for us in the Library to supply sat- isfactory data to the enquirer who only knows Latin America as a single country or unit and not as twenty individual countries, and desires to locate somewhere for the purpose of engaging in his particular trade, or to supply definite informa- tion to the manufacturer seeking for the first time the trade of foreign countries, or to supply material for a book or thesis to the highly trained expert who has spent many years studying and travelling in Latin America. Practically the entire north side of the building of the Pan American Union is occupied by the Library, its stack room extending for five floors in height in a room 21% x S3 feet. This room is equipped with the most modern steel stacks and has an estimated capacity of 100,000 volumes. Owing to the unique organization of the Library it is necessary to main- tain a fundamental classification or grouping by countries, and under each country give the usual subject arrangement found in all larger libraries. The scope, within its field, has been extended until each country is completely represented by an individual collection, making in all twenty-one small libraries. The card catalogue conforms to the same arrangement, so that all material is readily available. A special press clipping bureau is maiijtained, in which over 10,000 clippings are made annually. These are classified and filed in such a manner as to be of instaint use and are a valuable source of present day development. As an illus- tration, the Library has the day by day story of Mexico as published in daily newspapers from 1912 to date, arranged chronologically, and available for instant reference to anyone interested in that country. Through these clippings can be traced the current news of an industrial or financial enterprise, the development of shipping, or the opinion of prominent Pan Americanists, either North or South, on the aflfairs of the United States as they relate to some particular country. During the years of its existence many duplicate publications have been received, and these have been used to maintain an inter-library exchange of dupli- cates between the Pan American Union and the libraries of South and Cen- tral America and the West Indies. This exchange was established in 1912 and 1913 by personal visits and by correspondence with the more important Latin American libraries, until today it includes practically all the larger institutions. It is intended by this means to bring to the American business man books and other material needed in the development of trade, and while it is as yet undevel- oped to its largest possibilities it will prove an almost unlimited source for data in the future development of the Library. In the main reading room are large tables on which are kept the current numbers of commercial and literary magazines and where the current city or telephone directories of each capital city can be consulted. The^e latter books are an excellent source for names of persons to whom advertising matter may be sent. 386 SECOND PAN AMERICAN COMMERCIAL CONFERENCE To the North American exporter, manufacturer, or merchant, the Librarj' is especially valuable because in it he may consult the laws of the country in which he desires to do business, or ascertain from the latest commercial statistics the amount of the particular goods which a certain country imports, and from which countries it is received ; he can obtain from the directories on file the names of persons interested in his special line ; he can learn the tariff and customs usages; the shipping facilities; and if directly represented by his own travelling salesman he can find the amount of license fees such as salesmen pay; the hotel charges ; the railroad fares ; the time required to go from one point to another. In addition, he can be directed to sources of information of a general charac- ter; such as guide books and books of description, not essential to business, but so very necessary to a salesman entering a country new to him ; and for the home office staff, information on books or manuals on exporting trade can be had, •which will assist them in gaining a broader idea of the business and corre- spondingly extend their usefulness. To emphasize this instruction to the home staff, a limited use of lantern slides is advisable, and for this purpose the Li- brary makes limited loans, under certain restriction of the slides in its possession. The photographic collection affords an excellent opportunity to see certain lines of merchandise in actual use. For instance, a manufacturer of fencing can see fences as erected; the maker of wagons can see pictures of the types desired in specific countries; the lumberman can learn the various styles of mill work used in doors and windows ; the foundryman can ascertain the style of window grat- ings, and so on throughout the various industries. One of the most common expressions heard by visitors to the Library is, "I did not know such data was available." In closing, you are requested to send in your queries relative to Latin America, either by mail or in person. As a general rule practically any question can be answered from the material at hand, but for the cases where material is not available, or compilations have not been made, we can often point the way for obtaining it at the least expense and with the least delay. APPENDIX APPENDIX 389 APPENDIX PRACTICAL PAN AMERICANISM By John Barrett, Director General of the Pan American Union and Former United States Minister to Argentina, Panama and Colombia. (Specially prepared for the information of the United States Delegation at the Peace Conference and reproduced here by general request.) Pan America — All America — today faces a magnificently potential future. Pan Americanism — the cooperation of all the American republics and peoples for their common good — should appeal to all intelligently patriotic citizens of every American country. What more noble and practical principle is there in interna- tional relationship than that of a group of nations of close geographical associa- tion, similar inspirations and aspirations of liberty, freedom and justice; cbrrespond- ing historical struggles for existence, interdependent commerce and trade should do all in their power for their own welfare and through united attitude for the welfare of the world? Pan Americanism has experienced a remarkable development during the last ten years. The next ten, however, should show a far greater record of achievement. The Pan American movement dates back directly to the call of the famous Liberator. Simon Bolivar of northern South America for a Pan American Congress in 1821 at Panama. It was most eloquently championed by Henry Clay in and out of the United States Congress nearly one hundred years ago. Its basic purpose was in the minds and words of San Martin of Argentina, O'Higgins of Chile, Artigas of Uruguay, when southern South America was striving for inde- pendence from Spain a century back. It received its greatest impetus- from the declaration of President Monroe of the United States in 1823. It had its ups and downs of attention, discussion and action in the various capitals of the Americas for nearly seventy years until the so-called First Pan American Conference met at Washington in the winter of 1889-90 under the dis- tinguished chairmanship of James G. Blaine, then Secretary of State of the United States, and attended by the ablest statesmen of the other American governments. The chief practical result of this Conference was the organization of the "Inter- national Bureau of the American Republics," now known as the "Pan American Union." That office did its work as best it could with limited income, staff and facilities until it was reorganized in 1907 in accordance with the action of the Third Pan American Conference held at Rio de Janeiro, Brazil, in 1906. This conference was rendered notable by the presence at its opening of Elihu Root, then Secretary of State of the United States, who made an official visit to most of the South American countries, and of equally prominent representatives of all other nations. As it was my unexpected privilege and honor to be elected in 1907 the first executive officer of the Pan American Union under the plan of reorganization and to have held that position since then, I hope that I may be able to speak with some actual knowledge of the growth of real Pan Americanism and especially Pan American commerce in the period of my incumbency. As, moreover, I enjoyed the experience of serving as United States Minister to the Argentine Republic, Panama, and Colombia between 1903 and 1907 and attending the Second Pan American Conference at Mexico in 1901 as a delegate of the United States, I trust that I know the Latin American as well as United States viewpoint of practical Pan Americanism. May I, therefore, say plainly and unreservedly that I have always' held that no conception or interpretation of Pan Americanism could stand which suggests or expects in the slightest degree the domination or isolated leadership of any one country or any lesser group of countries in the general group which today form the Pan American Union. While a few enemies of the United States in Latin America try to interpret Pan Americanism as camouflaged "Pan Yankeeism" and my own humble efforts as a Pan American officer in behalf of the cause as a special agent of the United States, let me put it down as a matter of indisputable record that under jny administration the Pan American Union, as far as the attitude and in- terest of its staff, the tone of its publications, and the character of the general o90 SECOND PAN AMERICAN COMMERCIAL CONFERENCE information, correspondence and publicity work are concerned, has been tireless, loyal and responsible in spreading all over the world accurate data regarding each and every American republic. That the attitude and efforts of the Pan American Union are appreciated and respected in Latin America by all familiar with its real work is proved by the increasing demand for itS publications, by the constant use by ninety per cent of all the newspapers of Latin America (usually without acknowledgment because they naturally hold that fhe Pan American Union belongs to them and hence its data is theirs) of the material it publishes or distributes, and by the correspondence and inquiries of all classes of men and women from the Rio Grande to the Straits of Magellan. Seekers after information in all parts of the world address it as the chief central bureau of information where reliable answers to inquiries about every imaginable subject concerning any American country can be obtained with- out delay.* As for the people of the United States being dependent upon it, emphasis should be placed on the fact that every day brings numerous letters from manufacturers and students, merchants and travelers, shippers and authors, bankers and lawyers; statesmen and laborers, aside from those who personally consult its well selected library of 40,000 volumes and pamphlets, its 150,000 subject index cards, its 21,000 photographs, its 1,500 maps, and its files of 1,300 Latin American newspapers, magazines and other publications. Some of the very tangible evidences of growth^during the last twelve years of interest throughout the United States in Latin America, which the Pan American Union has aided and of which it has record, can be enumerated. Twelve years ago any effort of its executive officers in speeches, articles, or public comment to , call attention to the importance of Latin American countries, progress, and sub- jects, met with slight response; now the demand for such effort is greater than can be met. Then such effort was often misconstrued and even ridiculed as only an advertisement of the office and its staff; now it is everywhere taken seriously. _ Then the newspapers cared little or nothing for data and press releases regarding Latin America ; now nearly two thousand representative papers ask for it. Then few magazines and reviews printed articles about Latin America; now the majority seek them. Then very few colleges and almost no secondary educational institutions had courses relating to Latin America and the Spanish and Portuguese languages; now nearly all universities, colleges and high educational institutions teach Spanish, many have regular Latin American courses, and a few teach Portuguese, while several thousand secondary schools give instruction in Spanish. Then, not ten ;per cent of the United States Congressmen called upon the Pan American Union for information and reports ; now ninety per cent do. Then not twenty per cent of the manufacturers, merchants and bankers doing, or interested in, foreign trade sought information regarding the Latin American field; now eigthy per cent seek all the information they can get and sixty per cent are making or preparing to make a campaign in Latin America. Then, to be very practical, the annual exports and imports of the United States to and from Latin America were valued in round numbers at respectively $217,000,000 and $272,000,000, or a grand total of. $489,000,000 ; now in figures stand at respectively $1,024,000,000 and $719,000,000, or a grand total of $1,743,000,000. Then the trade of all Latin America with all the world did not much exceed $1,500,000,000; now it approaches the mark of $3,000,000,000. Surely in the light of the above data it cannot be said that the Pan American Union has labored in vain or been an ornamental rather than a useful organization,* Lest what has just been written should be construed as giving too much credit to the Pan American Union and not enough to other influences, it is right to point out some of the more powerful agencies of legitimate Pan American propa- ganda which have responded to the initiative of the Pan American Union. First corresponding Ministries of the Latin American countries ; second, the personal attention to the subject of Secretaries of State of the United States and of the Latin American diplomatic repi-esentatives in Washington, who form the Governing Board of the Pan American IJnion; third, the diplomatic and consular representa- tives and the commercial agents of the United States in Latin America and the same service of Latin America in the United States ; fourth, the regular Pan American or International Conferences of American States, the Pan American Scientific Con- gresses, the Pan American Financial Conferences and the. International High Com- * In this connection please see report of the Director General for the fiscal year 1917-1918, page 394, Appendix. APPENDIX 391 iiiissioii ; fifth, the special consideration of the Latin American commercial field given by the United States Chamber of Commerce, the National Foreign Trade Council and other unofficial commercial organizations, and the hospitality shown prominent Latin Americans by the Pan American Society of the United States (of which I am proud to say I have the honor of being the Founder) ; sixth, the cooperation of the Carnegie Endowment, especially through its Pan American Sec- tion ; seventh, the establishmeni of branch banks and agencies in the principal cen- ters of South America by financial institutions of the United States ; eighth, the new attitude and attention of the newspapers, magazines and reviews of both North and South America in Pan American matters ; ninth, the tolerant and appre- ciative articles and addresses of representative Latin American statesmen and scholars relating to the United States, its people and its cultural and intellectual life and similar treatment of Latin America by influential men of the United States; tenth, the addresses and messages referring to Pan American and Latin American matters of Presidents Roosevelt, Taft and Wilson and responsive utter- ances of the Presidents of Latin America. Finally, no other great international influence since the declaration of the Monroe Doctrine in 1823 has done so much to promote Pan American solidarity of sentiment as the recent war. Proof of this statement lies in the fact that thirteen Latin American governments officially broke, relations with the enemy of the United States; nine officially declared war; only seven remained technically neutral, and their popular sympathy, judging from the attitude of the majority of their press, the expressed views of their representative statesmen, and their friendly commercial cooperation was plainly pro American and pro Ally. The material and economic bearing upon both Pan Americanism and Inter Americanism of the past, present and future commerce between the United States and all Latin America and again between the United States and each Latin Ameri- can country demands today the best attention of the official, financial, commercial and industrial leaders of all the American countries. The simple statement of the remarkable and almost astonishing fact that the total value of the trade conducted between the United States and the twenty other American republics for the fiscal year of 1917-18, that is, from July 1, 1917, to June 30, 1918, showed the enormous increase of nearly $1,000,000,000 over the total of 1913-14, the last year before the war, or in a period of only four years, demonstrates beyond issue the vast im- portance of the Pan American field of commerce. In other terms the United States exports to, and imports from, Latin America grew in round figures from $747,O0O,00e four years ago to $1,743,000,000 for the last year. The official records tell the story that nothing equal to this trade expansion has heretofore been known in the history of the world — and yet numerous critics of my Pan American policy twelve years ago declared that the value of the United States trade with Latin America would not reach a thousand millions in a thousand years ! Now let us analyze these figures more closely. Noting first the exports of the United States to Latin America, we find that they leaped from approximately $280,000,000 in 1913-14 to $719,000,000 in 1917-18, or 1S7 per cent; that imports from Latin America jumped from $468,000,000 in 1913-14 to $1,024,000,000 in 1917-18, or 119 per cent; and that the grand total of exports and imports already given advanced 133 per cent. The reports for individual countries are equally impressive. United States trade with Chile grew in the same period from $43,000,000 to $205,000,000 or 376 per cent; Argentina, from $90,000,000 to $305,000,000, or 240 per cent; Cuba, from $200,000,000 to $500,000,000, or 150 per cent; Mexico, from $132,000,000 to $248,000,000, or 88 per cent; Brazil, from $131,000,000 to $180,000,000, or 37 per cent; Peru, from $20,000,000 to $64,000,000, or 220 per cent; Uruguay, from $13,000,000 to $41,000,000, or 215 per cent; Colombia, from $23,000,000 to $37,000,000, or 60 per cent; Dominican Republic, from $9,000,000 to $24,000,000, or 166 per cent; Guatemala, from $8,000,000 to $14,000,000, or 75 per cent; Salvador, from $3,000,000 to $10,000,000, or 233 per cent; Honduras, from $8,000,000 to $10,000,000, or 25 per cent; Nicaragua, from $4,000,000 to $9,000,000, or 125 per cent: Costa Rica, from $7,000,000, to $10,000,000 or 43 per cent; Panama, from $27,000,000, to $32,000,000, or 18 per cent; Haiti, from $6,000,000 to $13,000,000, or 116 per cent; Bolivia, from $1,000,000 to $4,000,000 or 300 per cent; Ecuador, from $7,000,000 to $16,000,000, or 129 per cent ; Paraguay, from $240,000 to $740,000, or 208 per cent ; Venezuela, from $15,000,000 to $21,000,000, or 40 per cent. The figures given emphasize the vast possibilities of Pan American coni- merce but they must not be misleading. The exceptional and extraordinary growth 392 SECOND PAN AMERICAN COMMERCIAL CONFERENCE is due to many causes. Of these the principal are as follows : First, the supplanting largely by the United States of the total trade of the Central European Allies, especially Germany's; second, the caring by the United States for that portion of the trade of Great Britain, France, Italy and Belgium, for which they themselves under war conditions could not possibly provide, and also for that part of the commerce of Holland, Spain, Norway and Sweden, and other neutrals which they also lost under war environment ; third, the heavy war demands for raw industrial and food products from the United States and also from the Allies as expressed through the United States as purchaser and manufacturer; fourth, the greatly increased demands upon the United States from Latin America for all such manu- factured products and supplies as it formerly obtained from other countries ; fifth, ^he greater efforts and better facilities which the manufacturers, exporters, im- porters and bankers of the United States had made and developed in the five years before the war broke out to care for the Latin American field ; sixth, the increased cost of nearly everything exported and imported and the lessened purchasing value of the dollar; and, seventh, the better knowledge in Latin America of United States supply and demand. Without minimizing the first four influences but enlarging upon the last two just given, let me quote from an illuminating paper recently prepared by W. C. Wells, Chief Statistician of the Pan American Union. He says : "America (mean- ing Pan America) is coming to know itself. No part thereof need longer consider itself as an appendage, culturally, industrially or commercially of any part of Europe. The European trade with America will revive after the war. No one doubts that fact, but it will never occupy the predominating position in the public mind that in half at least of Latin America it did occupy before the war. Even in the comparatively few Latin American countries where in reality the European trade before the war was the great predominating trade, the Inter American trade had a volume and an importance by no means justly recognized." At this point let us dispose of one of the most common errors committed by men of both North and South America in commenting upon or describing the foreign commerce of Central and South America, namely, that Germany at the outbreak of the war was far ahead of the United States in its share of Latin Arnerica's imports and exports and that German manufacturers, exporter.";, im- porters, shippers, and bankers were everywhere outdistancing and outgeneraling their rivals of the United States. The indisputable facts are. to the contrary. The official statistics of Germany, of the United States, and of the Latin American countries, show that the United States during the last six or seven years before ihe war began, or between 1907 and 1914, was more surely and rapidly increasing its Latin American trade than was Germany. The total value of the exports and imports exchanged between the United States and Latin America in 1913-14, the last prior war fiscal year, exceeded thoSe exchanged between Germany and Latin America by over $200,000,000! In fifteen of the twenty Latin American countries. United States trade in both exports and imports was ahead of that of Germany and in the other five it was growing more rapidly than that of Germany ! Why then all this talk about the mighty danger of German competition? It i^ largely due to remembrance of conditions of ten and twelve years ago which many of us pointed out in appeals to manufacturers and governments, in order to arouse them — but without general appreciation that these appeals met response, that the commercial and financial interests of the United States had awakened, and that when the first shot of the world war was fired, the foreign trade and financial interests of the United States and their new and old friends in Latin America, suddenly realized that, war or no war, the representative business leaders of both North and South America had made up their minds that Pan American or Inter American (whatever it be termed) commerce could take care of itself without regard to Germany. For this development the. importers and buyers, the ex- porters and sellers, the bankers and financial leaders of Latin America deserve just as much credit as, or more than, their friends and associates of the United States, because they told the latter what they must do to meet successfully German com- petition and announced that they did not buy from or sell to Germany for senti- mental but for purely material reasons ; if the business interests of the United States could satisfy them as well as those of Germany, they were perfectly willing to buy from and sell to them. Despite the prejudices of war, I am saying nothing against German trade but simply relating facts. German trade is entitled to all it can justly get and APPENDIX 393 let the best man win. If the commerce of the United States with Latin America cannot stand the competition with that of Germany which will follow the war, it does not deserve to succeed. Simply let it be known that the United States must not be frightened by prospect of German competition, but it must realize that it is eventually coming and that adequate preparations must be made to meet it. Com- petition is also coming as never before in a friendly but earnest way from Great Britain, France, Holland, Spain, Italy, Belgium, Japan and even China. Each of these countries is going to do its part to share adequately in Latin American com- merce—and Latin America is not going to play favorites after the war except to favor the sellers and buyers of the country that will give it the most for its money and products. This is sensible, natural and logical. We come now to the big question of what the United States Government, its commercial and financial interests, its average exporter and importer, and its people generally, as the case may be, must do to meet successfully the post-bellum economic and commercial conditions in Latin America. 1. The opportunity must be approached in a spirit of appreciation of each country's conditions of buying and selling, of credits and banking, of port, ship- ping, tariff, patent and trade-mark regulations, and of laws of commerce and foreign trade intercourse. 2. Reciprocity of attitude and action both by governments and individuals must be always kept in mind, such as will expect as much of the North American as of the South American and the reverse thereof. 3. Abundant shipping facilities and space and competitive rates, for ships will be a determining factor in the after-the-war tl-ad?. The passenger and mail facilities must equal those of freight and express. This condition must apply to both East and West Coasts of North and South America, and to those of the Gulf of Mexico and Central America and of the Caribbean and northern South America as well. 4. The great progress that has been made in United States banking facilities in the principal capitals and commercial centers of liatin America must be con- tinued and still further improved, for such extension and improvement are abso- lutely essential. 5. Despite the overwhelming demands made upon the banks and people of the United States for Liberty Bonds and War Savings Stamps during the war and the call that is going up front all over the United Slates for money for local enterprises after the war, its financial institutions and moneyed interests must be ready to loan freely and generously to the governments and legitimate undertakings of Latin America, which will require hundreds of million of dollars for recon- struction and advancement. For every million of dollars loaned to Latin America there will be an increase of an equal amount of trade. Corollary to this is the vital necessity of the early stabilizing and equalizing of exchange which was badly upset by war conditions. 6. As soon as possible after final peace comes, the Fifth International Con- ference of American States, commonly known as the Pan American Conference, which was tp have met in Santiago, Chile, should be called to consider important Pan American and Inter American questions, while the Second Pan American Financial Conference to be convened in January, 1920, will accomplish great good. 7. It is of the highest importance that every firm, agency, or man planning to enter the Latin American field, should study it in every detail, visit it if possi- ble, master conditions of demand and supply, and establish agencies and connec- tions. 8. On the other hand, for their own good and for the benefit of Latin American exporters to, and importers from, the United States, it is to be hoped that they will make a corresponding study of conditions in the United States and establish themselves directly or indirectly in New York, Boston, New Orleans, ' ' Chicago and San Francisco, or elsewhere, in order that they may gain the same advantage for their interests and countries as do their northern neighbors in going south. _ ' 9. Among other influences which will greatly aid Pan American and Inter American intercourse and commerce are (a) the systematized and practical study in appropriate institutions throughout the United States of the Latin American languages, Latin American geography, resources, history, commerce, and customs and similar studies relating to the United States in Latin America; (b) judicious advertising in the representative newspapers of both North and South America; 394 SECOND PAN AMERICAN COMMERCIAL CONFERENCE (c) preparations with special care of catalogues in Spanish and Portuguese and avoidance of common mistakes in this respect; (d) improved msurance condi- tions, and better packing where packages must pass through the tropics or travel over rough trails in mountain districts; (e) development of the parcel post and fast express for smaller and quickly needed articles; (f) establishment of aviation routes for mails and possibly for passengers and urgent express; (g) contruction and improvement of automobile roads in the interior of Latin American countries, especially where railway building is expensive and difficult; (h) extension of cable routes, lessening of cable rates, and use of wireless telegraph; (i) uniform laws for samples and traveling salesmen; (j) better hotel facilities in the majority of Latin American commercial centers; (k) the development of travel fOr better acquaintance and first hand knowledge; (1) and the sending out of high class representatives with a knowledge of the languages used. REPORT OF THE DIRECTOR GENERAL OF THE PAN AMERICAN UNION' Summarized Statement, to the Governing Board of the Pan American Union Prepared by John Barrett, Director General Covering His Report on the Administration of the Office for the Fiscal Year 1917-18 and the Program for the Year 1919-20. To the Governing Board of the Pan American Union: Gentlemen: The Directbr General has the honor to submit herewith, in ac- cordance with the Rules and Regulations, the following report: General Statement. (a) The past fiscal year from July 1, 1917, to June 30, 1918, has, under the influence of the war, been a peculiar but very busy one for the Pan American Union. The demand for information not only from individuals but from official sources has been unremitting, despite the war, and of a character requiring ex- ceptional effort and oftentimes most careful and extended research. It is no exag- geration, if conclusion can be drawn from the written and spoken comment of those in authority, that, if it had not been for the carefully indexed library and information, files and the ready knowledge possessed by the trained experts of the Pan American Union, nearly every department and bureau of the United States and other governments, desiring without delay accurate data regarding the various American republics, would have been greatly handicapped in starting, or- ganizing and conducting work involving Pan American relations resulting from the war. Not a day has passed that there have not been in the library or other offices of the Pan American Union skilled men and women of departments and bureaus of the United States and other government agencies here, seeking reliable informa- tion. The heads of all special war bureaus in Washington, which have anything to do with other American countries, have repeatedly informed the Director General that they were most dependent on information secured and for impartial assistance rendered. Especially have the facilities and staff of the Pan American Union been helpful in correcting errors of fact and in providing accurate informa- tion based on the official reports of all American governments. From exporting and importing houses, manufacturers and merchants, bank- ers and financiers, on the one hand, and from universities and secondary schools, college professors and students, editors and special writers, lecturers and travelers, on the other hand, of both North and South America, have come in constantly increasing quantities, serious inquiries of every kind, requiring thorough con- sideration and frequently special research before they could be satisfactorily answered. Then there has been a rapidly .growing" army of specially interested callers, representing every variety of private and public, national and international activity, seeking all classes of information relating to Pan America. It is also remarkable to what degree the members of the special foreign missions in Washington ' have used the facilities of the Pan American Union to obtain the data they desired regarding the Americafn republics. On one day, for APPENDIX 395 example, representatives of eleven European and Asiatic countries were consulting its library, the files of the information section, the official gazettes and the news- papers, according to what knowledge they sought. Some days the offices of the Pan America^ Union have looked as if they were the designated common meeting place of so-called "dollar a year men," having to do with international trade rela- tions, shipping, etc., who came here in search of official information which they could not secure easily and quickly elsewhere, or without long delays and red tape. By avoiding all prejudicial comment and hewing close to the line of truth in giving facts, the staff of the Pan American Union ha\e thus done a far-reaching and valuable service for practical Pan Americanism. Very impressive has been the demand on the Pan American Union of news- papers and other publications throughout Latin America for information that they could use in their columns. The same thing is true of letters being received in Spanish, Portuguese and French as well as English. The fact is that as year after year passes the Pan American Union strength- ens its unique position and adds to its world-wide reputation aS a central interna- tional Pan American bureau of reliable, easily accessible and rapidly given informa- tion, and also as an office of useful, practical, impartial, and unselfish activities in behalf of the welfare of every American republic. (b) THE MAIL ROOM REPORT is conclusive evidence of the busy year led by the Pan American Union. This shows that the total incoming and outgoing mail for the three hundred odd working days of the year reached the immense total of 471,034 pieces, which, in turn, represented an increase of 71,932 pieces over the grand total for the preceding year. This means a daily average of ap- proximately 1,570 pieces. The number of incoming and outgoing personally signed letters, not including circular letters but those requiring personal attention or acknowledgement, was 55,413, a steady daily average of 185. Circular letters sent out numbered 40,575 ; press releases 71,800. There were mailed out 269,104 packages carrying 671,208 individual pieces of printed matter, or a daily average of 2,237 pieces. None of these was sent carelessly broadcast but the great majority of them went in response to special requests and to the regular mailing list. 2,730 newspapers, upon their own request, are upon tlje regular mailing list of the Pan American Union to receive its reports, descriptive pamphlets, press releases, etc. These are divided as follows: English, 1,207; Spanish, 917;- Portuguese, 366; French, 29; miscellaneous, 211. Particular credit should be given the mail room clerk and his assistants for the skillful and effective manner in which they handled this large volume of business. Members of the Governing Board seldom visit the mail room, as it is in the basement, but the Director General respectfully submits that it is worthy of their attention and interest if they can conveniently find a few spare moments to inspect it. (c) THE MONTHLY BULLETIN has steadily grown in popularity and usefulness, if a safe conclusion can be drawn from the demand for it. Despite severe restrictions on white paper, greater cost of both printing annd paper, and the cutting of the free list, the total number of names receiving the Bulletin has grown from 13,437 in 1916-17 to 16,719 in 1917-18, or a bona fide increase of 3,282. The total number of Bulletins distributed for the year was 181,416, divided as follows: Spanish 111,180; English; 40,764; Portuguese, 17,112; French, 12,360. It (fan here be said that if the Pan American Union had the funds and facilities to care for a large circulation of the Bulletin it could undoubtedly be increased in a short period to 100,000 per month or even more, and rank with such a magazine as that of the National Geographic Society. Every effort is now being made, consistent with conditions for obtaining material and under the limitations of cost of production, to follow the wishes of the Governing Board in shaping the character and the scope of the monthly Bulletin. If there are shortcomings, they are almost unavoidable under the circum- stances. The earnest cooperation, advice and sympathy of every member of the Board is desired in making it worthy of the organization. The editorial staff of the Bulletin has certainly worked diligently to maintain a high standard and it is a pleasure for the Director General to give them credit for their efforts. (d) OTHER PUBLICATIONS, including the general descriptive pamphlets, comntercial data for each country, and special reports and articles on various sub- jects, printed and distributed throughout the year, reached a total of 248,431, and 396 SECOND PAN AMERICAN COMMERCIAL CONFERENCE would have gone far beyond this figure had printing and cost difficulties not in- creased as rapidly as the demand for such material. This represents an increase af 75,540 over the preceding year. (e) THE COLUMBUS - MEMORIAL LIBRARY experienced a healthy growth and exercised a more practical usefulness than ever before. The demands upon it have sorely taxed the efforts of the Acting Librarian and his assistants, but they have done the best possible under the circumstances and made it a center of research for all kinds of official and unofficial investigators and students. Additional stacks are now being placed in position to meet the increasing require- ments of space. The' report of the Acting Librarian gives the following interest- ing figures, each of which represents a substantial increase over the preceding year : Number of volumes and > pamphlets, 39,810 ; catalogue and index cards, 149,517; maps, 1,475; atlases, 110; lantern slides, 1,377; photographic negatives, 3,374; actual accessible photographs, 21,037. The library regularly received 1,204 representative periodicals from the different countries, whose information, like that of books, pamphlets and reports, is duly catalogued, indexed and made accessible. (f) THE EDUCATIONAL SECTION has been carefully looked after and extended by t!he Assistant Director, who has prepared a separate and special report on this subject, which is in the hands of the printer and will be presented at the next meeting. . (g) THE STATISTICAL SECTION has been kept exceptionally busy, aside from the regular demands of the Pan American Union, by the numerous and constant requests for reliable statistical data made upon it a^ already indicated, not only by the War Trade Board, the War Industries Board, the Shipping Board, the Food Administration, and the Bureau of Foreign and Domestic Commerce of the United States Government, but by similar agencies and offices of other Ameri- can and foreign governments. In each case the information given has been that compiled from official sources of the American republics. (h) THE BUILDINGS AND GROUNDS have been maintained in har- mony with their striking beauty, and in as good condition as could be expected in the face of serious difficulties of poor and expensive labor, high cost of materials, bad coal, smoke and soot from the furnaces of the surrounding cordon of war buildings and dirt and dust from the tearing up of streets and new construction. A serious problem in the present and future budgets will be that of keeping' in proper condition the exquisite buildings and carefully laid out grounds which represent an actual investment of $1,100,000 but which could not be duplicated now for double that sum. During the last eighteen months of the war period the Pan American Building has been the only notable official structure in Washington open absolutely without any restrictions to visitors. That this privilege has been appreciated is proved by the throngs of persons who pass its portals and study its meaning, its exhibits, its facilities and its architecture. It might be said that every govern- ment of the Pan American Union might appreciate the opportunty, so to speak, of capitalizing this daily attendance of interested representative visitors, unequalled anywhere else in the world, by providing additional and special exhibits, maps, photographs, and moving pictures as often urged heretofore by the Director General. In this connection it is to be hoped 'that the beautiful Hall of the Americas will be utilized this winter for appropriate lectures and exhibits of pic- tures covering each country. Assuredly the necessary latent talent exists in and out of the Board, with appreciative audiences only awaiting the summons to attend. Receipts and Expenditures, 1917-18. The receipts and expenditures for the fiscal year of July 1, 1917 — June 30, 1918, were respectively $158,281.48 and $156,388.40. (See note at end of report.) Future Work of the Office. Looking forward to the after-the-war period, it can be seen that the Pan American Union willface extraordinary demands upon its facilities. The present daily correspondence, the character of inquiries and the word of numerous per- sons who call at the office, leave no doubt upon this point. If the Pan American Union has made good in the past by serving all the American republics — and all 'the world in fact — it will have far greater activity and responsibility in the imme- diate future. APPENDIX 2^7 There is much constructive work ahead of it in which it must not fail. It must also take and tie up again many of the threads of practical Pan Americanism which were broken by the war. Under this latter head comes the vital question of holding the Fifth Pan American Conference which was to have met in Santiago, Chile, in 1914, but was postponed on account of the war. The date for this gathering will probably be determined after peace is declared, and then a new pro- gram will have to be framed. Plans will also naturally be brought forward for the Third Pan American Scientific Congress which will be held in Ldma in 1920. Already there are possibilities of a second Pan American Financial Confer- ence being called. Although this is under the International High Commission, the Pan American Union,' as in the case of the first Conference, will be asked to cooperate.* Among many opportunities of extending the office responsibilities of the Pan American Union are the following: (1) providing for daily or frequent illustrated lectures in the building on the countries of the Union, as practical educational work among not only those specially interested but the throng of regular daily visitors; (2) special lectures or conferences in the Hall of the Americas, given by members of the Governing Board or others whom they may designate; (3) the giving by its staff or others recommended by it of informative lectures and- addresses throughout the countries of the Union, especially before universities, learned societies, and commercial and social organizations ; (4) extension in the building of actual exhibits of the products and resources of the different countries, because the Pan American Building is the most appropriate place for such exhibits ; (5) improvement of the monthly Bulletin in every way practical, so that its pres- ent great usefulness and popularity may be extended and perfected ; {6) enlarge- ment of the scope and work of the Educational Section so that it may become a powerful factor in promoting educational and intellectual exchange ; (7) as corol- lary to the above, the popularizing of the study of the Spanish, Portuguese and English languages, respectively, according to countries, and their literature, and the study of Pan American history and progress among both the higher and secondary institutions of all the Americas ; (8) development of the Columbus Memorial Library through the cooperation of the governments and members of the Board, so that it may become more/than ever a central point of depositing and obtaining accurate information; (9) extension of the statistical and informa- tion sections by a more comprehensive plan for the publication of special reports that will promote, not only material, commercial and financial relations, but closer intellectual and social ties. The above are only part of the program of the Director General, the Assistant Director and the staff of the Pan American Union, but they are respectfully sub- mitted to the Governing Board for their interest and consideration, because they can only be carried out by their sincere and constant cooperation. Any suggestion, moreover, for the good of the Pan American Union which may be made by mem- bers of the Board are most heartily welcomed by the executive officers. In conclusion, the Director General desires to acknowledge with gratitude the kind interest, advice and assistance which he has always received from mem- bers of the Board, and he respectfully invites a continuance ofi such generous attitude during the coming year. He wishes also to thank especially the able, sympathetic and wise-counselling Assistant Director, the hard-working Chief Clerk, the conservative and responsible Chief Accountant, and all the other members of the staff who have done their best to make the Pan American Union an organization and institution of practical usefulness to every American republic and to all the world. Note — An itemized statement of all expenditures and receipts for the past fiscal year, 1917-18, and of estimated expenditures and receipts for the next fiscal year, 1919-20, was included in the original complete report and duly approved by the Governing Board. * Since this was written, it has been officially announced that President Wilson has issued the invitatiorts to the Latin American for the Second Pan American Financial Conference to be held in Washington in January, 1920. 398 SECOND PAN AMERICAN COMMERCIAL CONFERENCE LATIN AMERICAN FOREIGN TRADE-19I3-I917— A COMPARATIVE SURVEY Specially Prepared for the Second Pan American Commercial Conference By Matilda Phillips, Assistant Statistician, Pan American Union. The foreign trade of the twenty Latin American Republics for the calendar year 1917, compiled from the latest reports of the statistical offices of the several countries, and expressed in customs valuations converted into United States cur- rency, amounted to $3,281,003,645. This is the highest figure ever attained and represents an increase over 1913, the former high water mark, of $400,280,627. Comparing the year 1917 with the last full year before the war (1913), there was a decrease in all Latin American imports of 10.38 per cent, and an increase in exports of 34.SS per cent. In the northern group of countries, comprising Mexico, Guatemala, Salvador, Honduras, Nicaragua, Costa Rica, Panama, Cubfi, Dominican Republic, and Haiti, there was an increase in both exports and imports, 97.54 per cent, in the former, and 57.66 per cent, in the latter. In the southern grouj) — Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Paraguay, Peru, Uruguay and Venezuela — ^there was a decrease of 30.91 per cent, in imports and an increase of 22.14 per cent, in exports, as shown by the following tables: All Latin America. Imports. Exports. Total. 1917 $1,188,953,129 $2,092,050,516 $3,281,003,645 1913 .• 1,326,639,783 1,554,083,235 2,880,723,018 Increase $137,686,6541 $537,967,281 $400,280,627 Percent.. 10.381 34.55 13.89 Latin Republics of North America. Imports. Exports. Total. 1917 $483,972,903 $667,753,198 $1,151,726,101 1913 : 306,331,362 388,017,904 694,349,266 Increase $177,641,541 $279,735,294 $457,376,835 Per cent 57.66 97.54 65.87 ~South Am^erican Republics. Imports. Exports. Total. 1917 $704,980,226 $1,424,297,318 $2,129,277,544 1913 $1,020,308,421 1,166,065,331 2,186,373,752 _!_ Increase $315,328,195 $258,231,987 $57,096,208 Per cent 30.91i 22.14 2.61i 1 Decrease. In per cent, of the whole, the imports from the United States into Latin America represent 58.80 in 1917, as opposed to 24.69 in 1913. The proportion of the United Kingdom in 1913 was 27.70 per cent. ;. in 1917 it was 19.01 per cent. France fell from 8.65 per cent, to 4.11 per cent. Germany, with 18.34 per cent, in 1913, disappeared, and Spain, with 3.80 per cent., has taken her place. Of the total Latin American exports, the United States increased her trade in 1917 over that of 1913 by 121.70 per cent.; the United Kingdom by 2&24 per cent.; France by 28.69 per cent, and, as in the case of imports, Germany disap- peared, her place being taken by Spain with 1.85 per cent. The statistical tables forming a part of this survey give the total imports and exports of Latin America for the years 1913 and 1917, and the share of the leading countries participating therein. appendix 399 Character of Imports and Exports. Imports. Latin American imports are in general of the same character as the imports of western European countries and of the United States, except that they do not comprehend any large proportion of raw material for use in manufacturing. The great bulk of the imports, other than foodstuffs, are articles of a high degree of manufacture, finished for consumption. Outside of commodities not so included, the chief are lumber, gold, mineral oils, iron and steel construction material, flour, canned goods, and some unwrought iron, steel, copper, and other metals. Of the manufactured articles not food, which comprise the bulk of the imports, the range is very large, covering practically all the finished manufactured products known in Europe or in the United States — textiles, leather manufactures, furniture, household utensils, office appliances, tools, hardware, machinery, especially the lighter kind, agricultural implements, mining supplies and tools, engines, motors, glassware, telephonic, telegraphic, and other electrical apparatus and material, and paper. Edible oils, canned vegetables, meats and fish, sweets and jams, edible pastes, spices and condiments, and wines and liquors, comprise the chief import of the more highly manufactured food products. In countries not producing the same, there are imports of sugar, tobacco and fruits. Tliere is a remarkable uniformity in the imports of all the 20 countries. As a general rule what can be sold in Cuba or Mexico can also be soid in Argentina or Chile. Exports. On the contrary, Latin American exports, while in general falling in one class, i.e., raw materials for use in manufacturing, primary food products, and metals, yet owing to the great differences of soil, climate, rainfall, and other natural conditions, proximity or remoteness to markets, and development of trans- portation systems, are widely differentiated in the several countries. With the exception of Argentina, Uruguay, and Chile, food exports in general are tropical or subtropical products, such as coffee, cane sugar and cacao. The food exports of the three countries — Argentina, Uruguay, and Chile — are, however, of the same character as the food exports of the United States — meats and grain. The principal exports of the 20 countries are as follows : Mexico. — Gold, silver, antimony, mercury, copper, lead, zinc, mineral oils, sisal, hides and skins. There are some exports of rubber, woods, peas and beans. Guatemala. — Coffee, hides, woods, bananas. Salvador.^Coffee, silver, gold, indigo, sugar. Honduras. — Gold, silver, bananas. Nicaragua. — Coffee, vi^ods, rubber, sugar. * Costa Rica. — Coffee, bananas, gold, silver. Panama. — Bananas, ivory nuts, coconuts, rubber. Cuba. — Sugar, molasses, distillates, tobacco, iron and copper ore, woods, fruits, hides and skins. Dominican Republic. — Sugar, cacao, tobacco, coffee, bananas, hides. Haiti. — Coffee, cacao, honey, cotton, cotton seed, logwood. Argentina. — Frozen beef and mutton; hides, wool, sheepskins, goat skins, bristles, canned meats, beef scrap, tallow, butter, grease, bones, wheat flour, corn, linseed, oats, hay, bran, quebracho. Bolivia. — C«J -^N Oi rt t- O M oT M oT t^ 00 w o ■^C-CarHMt--^0 occoi-iu3eoo)o TP-^iHoouawooosooo U3U3ta0000-9OiH<0O OOOOOOrHCOrHtfiCDc-O t-eccoo>wt>iHeooo «-iNNeo'Ma>ooooo oesoocot^Ncot-«o «? CO N N eJ US -^ t-4 lO i-T .-(OcocooujiHooeo"* Tjieoeoooo^o-^oo ceoeot-ioooaiHt-ia eg « tH «? 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Peck, F. R. G. S., Author of "The South American Tour/' A Descriptive Guide. Thcwell-defined routes of trade and travel in South America may and shiould be thoroughly understood by commercial men, although at the moment the means of communication between the two continents are somewhat irregular, and wholly inadequate, while the plans for their development are hardly yet crystallized. There is no doubt, however, that within a few months, the accommodation for tourist and business travel and for freight transportation will be sufficient for present require- ments. Information in regard to the increased facilities will then be easily se- cured. These will naturally be arranged to suit existing conditions in South America which are not likely to vary much within the next two or three years, so far as railways are concerned. The various steamship lines serving the several coasts will be mentioned in connection with each. The routes of travel for a business man on a tour of investigation are much the same as for a pleasure tourist. Both wish to visit the largest cities and to patronize the best hotels. Those of the East and West coasts ate adequately described in the book "The South American Tour." The North coast by tourist and salesman is ordinarily visited on a separate trip in connection with Central -America -and the West Indies. It may, however, be included with the tour of South America by connections made at Trinidad or Barbados at Panama or Buenaventura. For one planning to visit the chief cities only, the way is simple. Unless business reasons imperatively demand an immediate vist to the East Coast, it is far better to take the West Coast first. The slight inconveniences of travel there will be less noticeable than if returning a little fatigued, and when comparison is made with the luxuries of the E^st Coast. For such a tour one sails in general from New York, New Orleans, or San Francisco to the Isthmus of Panama, there transferring to one of the West Coast steamers, unless indeed one has journeyed from New York by the new United States and Pacific Line which now has a single steamer in service making the \:oyage from New York to Valparaiso in eighteen days. This service will be fortnightly as soon as the other ships of the company are returned by the United States Government. These are new ships of ten thousand tons each, with all modern requirements, making the voyage in several days less time than any of the other steamers. This may at times be the quickest way to reach Buenos Aires, as the rail journey across from Valparaiso requires but forty-eight hours. It is rumored that the Pacific Steam Navigation Company may later inaugurate a similar through service from New York to Valparaiso. Service from New York to the Isthmus is now carried on by the United Fruit Company with weekly sailings, and by the Panama Steamship Company also generally with a weekly steamer. The United Fruit Company expects to resume its former service of three weekly sailings from New York and three from New Orleans as soon as its ships are released from the United States service. There is now one weekly sailing from New Orleans as from New York to Cristo- bal. The Royal Mail will probably resume its former service before long. The service on the West Coast is given by three lines : the Pacific Steam Navigation Company, the Peruvian and the Chilean Lines. The first has a fort- nightly servfce to Valparaiso and one every ten or twelve days to Colombian and Ecuadorian ports. The other two have weekly sailings on Mondays from Cristo- bal ; the first to Peruvian ports only, Paita, Eten, Pacasmayo, Salaverry, Callao, Pisco and Mollendo; the last to the same ports in Peru, except Pisco, and in Chile calling at Arica, Iquique, Antofagasta, Coquimbo, Valparaiso, Talcahuano and Lota. The Pacific Steamship Navigation Company visits about the same ports. Many commercial men will find it sufficient for their business to establish an agency in the capital or chief port of the several Republics, from which point the goods will be distributed by the local agent to desirable localities. Making a trip with this idea the first call below Panama will be at Guayaquil or Callao. The former city is the important distributing point for Ecuador, but care must be taken to learn whether there is a quarantine against the place in Peru or Panama, according to the direction in which one is going, as the delay thus involved may be annoying. APPENDIX -^Oj In Peru, Callao, or preferably Lima, eight miles distant, will serve as a distribut- ing point for the entire country; but one visiting La Paz may well place another agency in the South at Arequipa. The route via MoUendo is altogether the best way to go up to the table land, this being an important reason for taking the West Coast first. It is desirable to begin Bolivia at the capital, La Paz, rather than at the South, and the upward journey from MoUendo is both safer and more comfortable. It is well known that under similar conditions otherwise, one suffers from soroche or mountain sickness more at night than in the day time. Also a gradual ascent to a great altitude is less likely to be dangerous or un- pleasant than one made rapidly. Going up from MoUendo one must spend at least one night at Arequipa, altitude 7,50O feet. One having business will remain a few days. The journey made by day will then be much easier over the pass, 4,666 feet down to Lake Titicaca 12,500 feet. The single night in a stateroom on the steamer is far more agreeable than the two nights in a sleeping car coming up from Antofagasta, when almost everyone suffers from headache the second night. After visiting La Paz, one may safely descend in a single night to Arica or go south to Antofagasta, if wishing to make calls in Bolivia on the way. In Chile, Valparaiso, the port, or Santiago, the capital, four hours by rail, or both may serve as trade centres for the Republic. The rail journey to Buenos Aires is comfortable and pleasant, the highest point on the Trans-Andine, 10,486 feet passed by day, occasioning no inconvenience to the person in ordinary condition. Buenos Aires may serve as a centre for the whole of Argentina and for Paraguay and Uruguay as well ; but Montevideo is so near and on the way that it is better to pause there and have a centre for Uruguay even though that country is Small. In case of a snow blockade on the Trans-Andine Railway, there are two other routes, one by boat through the Straits of Magellan,- a voyage of twelve days from Valparaiso, the other from Bolivia. The latter would involve a return by sea to Antofagasta, a 24-hour journey by rail to Uyuni, thence southeast to Atocha. ■ From the rail terminus at that point an automobile covers the distance to the end of the Argentina line, by which one may be transported in 48 hours to Buenos Aires. This break in the rail connection ought to be speedily filled, while more sheds on the Trans-Andine, let us hope, will make service on that road possible without interruption. Brazil, however, needs more than one centre. Rio de Janeiro is of course the chief, but Manaos is a journey of three weeks from the capital; and Para, at the mouth of the Amazon is therefore a desirable centre for North Brazil, while Porto Alegre may serve for the south. The steamship lines now serving the East Coast are the Lamport and Holt, the Lloyd Brazileiro, and the Booth. The first, having lost three ships in the War, now maintains only a monthly service to Buenos Aires, calling also at Montevideo, Santos, Rio and Bahia. Other boats, running to Brazil only, provide thus a fortnightly service as far as Rio. These boats are now planning also a call at Para. The Lloyd Brazileiro has now monthly sailings, with calls at Barbados, Para Ceara, Pernambuco, Bahia and Rio. The company has other lines serving both South and North Brazil, including the Amazon River. The service may be increased later. The Booth Line gives weekly service to Para and Manaos on the Amazon, and to the coast cities of Sao Luiz in the state of Maranhao, Fortaleza in Ceara, Cabadello in Parahyba, Pernambuco in that state and to Maceio in Alagoas. It has a monthly service farther up the Amazon to Iquitos, Peru. On the north coast Venezuela is served by the Red "D" Line only, from New York; and Colombia by the United Fruit. Other lines, however, British, French, Dutch or Italian help out, making connection at Trinidad for La Guaira in Venezuela or at Curasao. La Guaira, the port of Caracas, is served weekly by the Red "D" Line, which calls at the more western cities, Puerto Cabello and Maracaibo, once in two weeks. A visit to Caracas only will suffice for some and in Colombia calls at Baranquilla and Cartagena. It is expected that a frequent service to Rio and Buenos Aires with large government built passenger and freight steamers will soon be inaugurated by a well-known line. There are many lines of freight steamers now running to the various ports which need not be enumerated. 404 SECOND PAN AMERICAN COMMERCIAL CONFERENCE Salesmen desiring to canvass the territory more thoroughly may visit to advantage many other cities. Of one should begin with Venezuela, after a call at Caracas, he may proceed by rail to Valencia, the second city, population 60,000, and from there to Puerto Cabello, population 14,000. A visit to Maracaibo should follow, a city of 50,000. At the Island of Curasao connection may be made for Colombian ports. Most important are Colombia and Cartagena, both of which have rail connection with Bar.ranquilla, Cartagena itself being important as a commer- cial centre. Sixty per cent of the' commerce oi the country passes through Barran- quilla. One should ascefld the Magdalena River with rail connection to Bogota. Side trips to Bucaramanga and Medellin may be found profitable. A hardy traveler or tourist may cross the mountain ranges to the pretty city of Cili, thence descending by rail to the port of Buenaventura. From here one would take a Pacific Steamship Navigation steamer, which would permit of a call at Esmeraldes in Northern Ecuador and at Manta farther south. From Guayaquil one goes by rail to the capital Quito, and from Sibambe on the return one may diverge from the railway to go on horseback to Cuenca, the third city of Ecuador. In Peru it is well to pause at Paita for the short railway journey to Piura and Catacaos, Paita being third in importance of Peruvian ports. One may also call at Trujillo, a few miles from Salaverry, an important city of a- rich sugar district as Piura of a cotton section. It is desirable for some to go up from Lima by the famous Oroya Railway, and a branch line, to Cerro de Pasco, the famous copper city, altitude 4,300 feet. The other ports of call, Eten and Pacasmayo at the north and Pisco at the south may be visited if one has ample time. On the way to Bolivia from Arequipa a side trip by rail from Juliaca to Cuzeo may be of advantage. • After La Paz in Bolivia, calls may be made on the way south at the garden city, Cochabamba, and the mining city, Potosi, reached by branches from the main ■ line, and Oruro may be visited without turning aside. Thus one reaches the sea at Antofagesta. Coming down from La Paz to Arica, besides the call at this port one has the opportunity also of visiting Iquique, famous for nitrates, as is.Antofa- gasta, two hundred miles farther. Taltal, just beyond, is important, and Coquimbo, the port of the considerable city. La Serena. South of Santiago and Valparaiso are several cities of consequence all easily reached by rail and also by boat and rail. Talca is one of these, its port Consti- tucion, and farther south in the interior is Chilan, a large trading centre. Con- cepcion, the third city of Chile, should not be neglected. It is connected by rail with the port Talcahuano and with Lota, as well as with the Longitudinal Railway, which extends from the far north to Puerto Monto at the south. If one has the time to spare, a steamer may be taken at Lota for Punta Arenas, a thriving centre of trade, and so come around to Argentina, calling at Bahia Blanca on the way to Buenos Aires. Argentina is well served by railways and Bahia Blanca is an important centre for the more southern district, besides having a better natural harbor than Buenos Aires.. Other cities in Argentina very desirable to visit are of course Rosario, the Chic^o of the country^ Mendoza in the west which will be on the way for one commg by the Trans-Andine. Northwest by way of Rosario, the cities of Santa F^ Cordoba, and Tucuman may be visited. Nearer to Buenos Aires is La Plata. Asuncion is of course the distributing point of Paraguay, now reached by rail or by river. The river may be ascended farther to Villa Concepcion, or to Corumba in Brazil. Returning by rail from Asuncion, calls at Villa Rica and Villa Encarnacion may be worth while. In Argentina there are many more larger cities which may be included in a thorough canvas. In Uruguay besides Montevideo, Paysandu, Fray Bentos, and Salta may all be visited by rail. One may prefer, too, the all-rail route to Sao Paulo, now that the service is improved, branches leading from the main line to Rio Grande do Sul and Porto Alegre ;a3 well as to Curitiba and Paranagua. Santos and Sao Paulo, the latter the third city in South America, are most important for tourist and business man. Several cities iii Minas Geraes may be visited by rail from Rio, as well as Sao Paulo. Coming north, if omitting smaller ports, Bahia must not be neglected, and the various ports of call of the Booth Line above mentioned may be worth while for some. Pernambuco is of special importance, still more Para which for the majority will suffice without the nine hundred miles up the Amazon to Manaps, or the 2,300 to Iquitos. APPENDIX 405 SIX HUNDRED COMMERCIAL ORGANIZATIONS, BUSINESS HOUSES, FIRMS, STATES OF THE UNITED STATES AND OTHER ORGANIZATIONS REPRESENTED AT THE SECOND PAN AMERICAN COMMERCIAL CONFER- ENCE, WITH NAMES OF REPRESENTATIVES. Adams, Lovell, Burlingham, Inc New York City William Burlingham. Advanced Agricultural Pub. Co., The. .New York City Walter A. Johnson. Aerial Age New York City Douglas Wardrop. Aero Club of America New York City Augustus Post. Affiliated Lecture Bureaus Jackson, Mo Rev. M. D. Collins. Aircraft Advertising Agency, Inc., The. New York City Granville A. Pollock. Ajax Rubber Co., Inc New York City A. R. Gormully. Alabama, State of.... Anniston, Ala J. B. Carrington. Aldao, Campos & Gil New York City. . ... .Enrique Gil. Alexander Hamilton Institute New York City R. f. Falkner, Ph. D. W. F. Hickernell. Jeremiah W. Jenks. All America Cables .--. . .Washington, D. C — R. J. Hewitt. William J. 0"Brien. New York City John J. O'Donnell. All Americas Publishing Co New York City D. Havelock Fisher. Allied Export Association New York City Louis Henry. Chicago, 111 Allied Foreign Trade Corporation New York City J. de Jara Almonte. Allied Machinery Company of America. New York City S. T. Henry. Bernardo Prichard. American Aniline Products, Inc New York City Paul Nobbe. American Asiatic Association New York City Louis D. Froelick. American Assn. for Int. Conciliation. . .New York City Peter H. Goldsmith. American Association of Engineers. .. .Washington, D. C — Edgar L. Howard. American Automobile Association Washington, D. C — J. E. Pennybacker. American Bankers Association New York City William F. Collins. F. K Farnsworth. American Bank Note Co New York City Joseph Claudet. F. W. GuUett. American Cane Growers Association ... New Orleans, La J. C. LeBourgeois. American Crayon Co., The » New York City W. Henderson. American Exporter New York City Franklin Johnston. American Express Company New York City F. O. French. A. B. Howard. American Flexible Bolt Co New York City R. W. Benson. Amer. Inst, of Weights and Measures. .New York City F. A. Halsey. American International Corporation New York City M. D. Carrel. Fred Morris Bearing. C. S. Gardner. Philip W. Henry. Brooklyn, N. Y J. C. Luitweiler. American, La France Fire Engine Co.. .New York City Calvin A. Jones. American Locomotive Sales Corp New York City Charles M. Muchnic. American Machinery Syndicate, Inc — New York City Henry S. Moos. American Medical Association Chicago, 111 Aristides A. Moll. American Metal Co., Ltd New York City Henry Bruere. H. K. Hochschild. American Metric Association New York City. . H. Richards, Jr. American Milk Products Corp New York City Clarence S. Stevens. American Muttigraph Sales Co Washington, D. C....J. Arthur Finnigan. . American Paper and Pulp Association. .New York City L. B. Steward. American Red Cross, Insular and Foreign. Division '■ Honolulu, Hawaii . ..Robbins B. Anderson. American Steel Export Co New YorTc City Edward W. Ames. F. H. Tackaberry. 406 SECO^fB PAU AMERICAN COMMERCIAL CONFeSEMcE American Sugar Refining Co., The New York City Judson Lounsbery. American Surety Co. of New York New York City Jarvis W. Mason. American Surety Co., Wasli. Branch .... Washington, D. C L. Bert Nye. American University Washington, D. C. . .Frank W. Collier. Amsinck & Co., Inc., G New York City Camilo Carrizosa. C. A. Seoane. Andrews & Co., Inc., D. C New York City Gedrge W. Bankell. Anglo South American Bank, Ltd New York City Fred. C. Harding. Appalachian Corp., Inc„ of Louisiana. .New Orleans, La Louis B. Magid. Argentina-Ainerican Chamber of Harry Erwin Bard. Commerce, Inc New York City Ridgefield, Conn. Argentine Republic, Chamber of Com- _ merce of the United States of America in the New York City M. D. Carrel. Buenos Aires, Arg.. .A. B. Howard. Argentine Industrial & Financial Corp.. New York City Arthur Wolfsohn. Armstrong Cork Co Washington, D. C. . . . Conrad H. Young. Artadi & Co., G New York City Henry Hirtler. Art and Archaeology Washington, D. C Mitchell Carroll. Assn. of Limb Manufacturers Washington, D. C....Hi B. Hanger. Assn. National Advertisers New York City John Sullivan. Associated Press, The Washington, D. C. . . . F. B. Noyes. R. M. Whitney. Atkins & Co., Inc., E. C Indianapolis, Ind. . . . Adolfo Dugue. Atlantic Refining Co., The Philadelphia, Pa. . . .Carl Vogel. Atlas Commerce Corp New York City A. E. Holt. O. D. O'Neill. Austin Baldwin & Co., Ine New York City Simeon Shepard. Auto Accessories Co Washington, D. C Miss Eva K. Fisher. Lauren M. Smith. Automobile Topics Washington, D. C Walter F. Eberhardt. Aviation and Aircraft Journal , New York City L. D. Gardner. Babson's Statistical Organization Wellesley Hills, Mass George A. Sanborn. Baldwin Locomotive Works Philadelphia, Pa C. H. Crawford. Reeves K. Johnson. Baltimore American Washington, D. C — Louis Garthe. Baltimore, City of Baltimore, Md Tunstall Smith. Baltimore Export and Import Board of Trade of Baltimore, Md Austin McLanahan. Banco Mercantil Americano de Caracas, Caracas, Venezuela New York City . . ; . . . Percy J. Foley. Banco Mercantil Americano de Colombia Bogota, Colombia . . .Major Harry Davis. Banco Mercantil Americano de Cuba... New Y'ork City Frank J. R. Mitchell. Bankers Magazine, The New York City Elmer H. Youngraan. Bank of Pittsburgh N. A., The. Pittsburgh, Pa Dr. J. T. Holdsworth, Bankers Trust Co New York City Fred I. Kent. Barber Asphalt Paving Co., The Philadelphia, Pa. ...Edmund A. Pratt. Barcelona-American Chamber of Commerce New York City Antonio M. Opisso. Barrel! Co., William L New York City Fred S. Bennett. Bartley Crucible Co., Jonathan Trenton, N. J..'. Lewis H. Lawton. Washington, D. C — Louis C. Witkowski. Bech, Van Siclen & Co., Inc New York City Kenning Ege. John Larsen. J. Alio Roth. Benedict Coal Corp ; Lynchburg, Va. ., W. W. Taylor. Bennett & White,. Inc New York City D. R. Martinez. Bethlehem- Motors Corp New York City Howard B. Hall. Bethlehem Steel Co New York City Charles M. Schwab. ■ Bird & Son, Inc Washington, D. C....E. H. Seal. APPENDIX 407 Blair, Parker Coal & Coke Co Philadelphia, Pa. ...Henry G. Brown. Bolger, Mosser & Williams Chicago, 111 Bonnot Co., The Canton, Ohio D. W. Jasper. Boomer & Co., Inc New York City R. De F. Boomer. BoseUi, Jeramaz Co Paterson, N. J Louis Boselli. Boston Export Round Table Boston, Mass Henry H. Morse. Brandon, Hadges & McLain, Inc '.New York City Brill Co., J. G., The Philadelphia, Pa. . . .Morrison J. Oswald. Brown & Cooksey New York City Charles Paul Brown. Brown & Sons, Alex Baltimore, Md Austin McLanahan. Browning & Co., Victor R Cleveland, Ohio Edwin H. Stowell. Bruna Sampaio & Co., of Valparaiso, Chila New York City Arsacic Ibafiez. Buffalo Commercial , Washington, D. C A. D. Fairbairn. Buffalo (N. Y.) Courier Washington, D. C....Mrs. R. D. Hopkins. Buffalo Star Washington, D. C. . .A. D. Fairbairn. Bui; & Co., A. H New York City J. D. Phillips. Bunnell & Co., J. H New York City John J. Ghegan. Business Publishers Association New York City A. C. Pearson. Business Representative Bureau Washington, D. C Linus M. Bailey. Busk & Daniels New York City Lorenzo Daniels. Butler Paper Co., J. W -Chicago, 111 Paul Butler. Caldwell-Burnet Corporation New York City H. Q. C. Hatch. California, State of Sacramento, Cal J. A. Elston, M. C, Washington, D. C. Wm. Kettner, San Diego, Cal. Canton Co. of Baltimore Baltimore, Md Kurtz Wilson. Canton Railroad Co Baltimore, Md.. Kurtz Wilson. Carr Brothers New York City Herbert J. Carr. Carter & Co., R. K New York City Alfred C. Greening. Casa de America New York City Antonio M. Opisso. C'astellanos Bank Philadelphia, Pa T. C. Acevedo. Central and South American Tele- graph Co. (All America Cables) . . .New York City John L. Merrill. Central Bureau of Planning and Statistics New York City Horace M. Goddard. Central Trust Co. of Illinois Chicago, III Greo. W. Doonan. Chamberlain Medicine Co. Des Moines, Iowa... Will A. Peairs. Chandler & Company New York City Ernest H. Wands. Philadelphia, Pa Chattahoochee Furniture Co Flowery Branch, Ga.. Forrest Additon. Chemical and Metallurgical Engineering New York City Howard C. Parmelee. Chemical National Bank of N. Y New York City John Qausen. Chevy Chase School Washington, D. C. . .Fred. E. Farrington. Chicago Association of Commerce Chicago, 111 W. Stimson Barnes. Harry H. Merrick. Chicago Paper Company Chicago, 111. ...' Robert C. Fay. Chicago Pneumatic Tool Co Chicago, 111 W. P. Pressinger. Chile and Northern News Association. .Washington, D. C... Charles M. Pepper. Chilean Commercial Bureau New York City Severo Salcedo. ChrJstoph Company, Paul J New York City Leon N.-Bensabat. Buenos Aires Rio de Janeiro Cincinnati Chamber of Commerce Cincinnati, Ohio ....James B. Morrow. Class Journal Co., The New York City .David Beecroft. Washington, D. C Allen Sinsheimer. Clyde Steamship Co New York City Robert Wardle. Coastwise Shipbuilding Co Baltimore, Md Frank A. Brande. T. W. Whedfer. Columbian Rope Co Auburn, N. Y Alfred Robertson. 408 SECOND PAN AMERICAN COMMERCIAL CONFERENCE Columbia University New York City Frank Hederidi. Committee on Friendly Relations among Foreign Students New York City C. Du Bois Hurrey. Compania Nacional de Metales New York City John S. Pendleton. Buenos Aires Havana, Cuba Santiago, Chile Computing-Tabulating Recording Co.. .Washington, D. C Harry S. Evans. Congressional Information Bureau Washington, D. C... Claude N. Bennett. D. L. Selke. Connett, Burton & Co New York City -. Conpanhia Nacional de Mates New York City John S. Pendleton. , Rio de Janeiro Sao Paulo, Brazil. . . . Consolidated Rolling Mills & Co.. . . . .'.New York City H. G. Venable. Consolidated Steel Corp New York City W. S. Tower. Constitutiohal Railways of Mexico New York City Alberto de Hoyos. Continental and Commercial National Bank of Chicago Chicago, 111 Geo. W. Reynolds. Corbett & Co., M. J New York City Carl W. Stern. Corby Co., The Washington, D. C. . . W. S. Corby. Corn Exchange National Bank Philadelphia, Pa. ...Charles L. Chandler. Corning Glass Works, Pyrex Division .. Corning, N. Y Will T. Hedges. Costa Rica Chamber of Commerce San Jose, Costa Rica. John M. Keith. Cottman Co., Clarence ^ Baltimore, Md Kurtz Wilson. Craemer Nail & Supply Co New York City Henry Craemer. Craemer Trading Corp New York City Henry Craemer. Crex Carpet Co New York City A. Garcinava. Myron W. Robinson. Criterian Newspaper Syndicate New York City Dr. L. Lara Pardo. Cross Co., J. H Philadelphia, Pa Crossmond & Co., L. D.. New York City L. D. Crossmond. Cuban American Reduction Co New York City Charles S. Munson. Curtiss Aeroplane & Motor Corp New York City F. L. Faurote. Daily News Record Washington, D. C J. B. McDonnell. Davis Hosiery Mill Fort Payne, Ala Miss M. W. Mickler. Davies, Turner & Co New York City C. B. Ames. Delaware, State of Dover, Del Col. J. Satterthwaite Wilmington, Del. Delmarle & C9., O. J Rochester, N. Y O. J. Delmarle. Deselektro Co., The Washington, D. C . .W. J. Dunne. J. L. Hanlon. Fred Brown Whitney. Dexter Portland Cement Co New York City Raymond W; Hilles. Dietzgen Company, Eugene ; Washington, D. C. . .F. H. Bryson. Disston & Sons, Henry Philadelphia, Pa. . . .8. Horace Disston. District of Columbia Paper Mfg. Co. ... Washington, D. C....D. A. Smith. Doubleday, Page & Company New York City Kenneth Andrews. A. Eugene Belles. Herbert S. Houston. Drexel Institute Philadelphia, Pa HoUis Godfrey. Dun & Company, R. G Albany N. Y Francis R. Purdie. Dundas Bros. Co Philadelphia, Pa J. Marron Dundas. Dunston, Co., E. W New York City J. A. Prigge, Jr. Du Pont Chemical Co Wilmington. Del. ...J. C. Packard. Du Pont de Nemours Export Co., E. I.. New York City C. de Cordero. Eastman Kodak Co Rochester, N. Y D. E. Delgado. Economy Tumbler Co.. Morgantown, W. Va. W. E. Hunter. Edison Electric Appliance Co., Inc Chicago, III C. O. Hard. El Mercurio Santiago, Chile Ernesto Montenegro. "El Nacional," Habana, Cuba Washington, D. C... Nathan Levin. APPENDIX 409 "El Paje'' of Mexico City Mexico City, Mex.. . .Carlos Arellano, New York City. Emerson Brantingham Co Rockford, III A. T, Jackson. Enfield Pottery & Tile Works Enfield, Pa J. H. Dulles Allen. Engineering and Mining Journal Washington, D. C Paul Wooton. Engineering News Record New York City Charles W. Baker. Explorers Club New York City Henry C. Walsh. Factory Products Corp New York City R. del Gallego. Frank P. Morgan, Washington, D. C. Factory Site Commission ^ Baltimore, Md Tunstall Smith. Fairbanks, Morse & Company New York City T. T. Bond. Allan R. Rea. Farmers Fireside Bulletin Arlington, Texas . . . . W. A. Bowen. Fay's Aliens Bureau Boston, Mass James M. G. Fay. Federal Reserve Bank Boston, Mass Frederic H. Curtiss. Films of Business New York City Joan Calley (Mrs. D. M.). First National Bank Boston, Mass Carl S. Wells. First National Bank Chicago, 111 John J. Arnold. First National Bank La Junta, Colo Robert W. Patterson. Flaherty Co., Joseph Pittsburgh, Pa Joseph Flaherty. Flemer, Lewis Washington, D. C. . .Lewis Flemer. Flint & Company, Inc New York City. .... .Charles R. Flint. Pontes & Company, E. G Rio de Janeiro, "" Brazil Ernest G. Pontes. Fordham University New York City Edmund J. Burke. Foreign Bond & Share Corp New York City M. Hely-Hutchinson. Fort Dearborn National Bank Chicago, III Edward N. Heinz. Foster & Reynolds Co., The New York City Ward G. Foster. Four Wheel Drive Auto Co., The Washington, D. C....R. M. Newbold. Fox Bros. & Company New York City Adriano Cobo. Frank and Pinera New York City Stuart H. Frank. F. W. D. Auto Company Washington, D. C H. H. Dargin. Galcavecchia, Aballi & Co New York City Charles S. Streva. Garfinkle & Company, Julius...'. Washington, D. C... Julius Garfinkle. "Gary" Motor Truck Co., The Gary, Ind R. A. O'Donnell. Gaston, Williams & Wigmore New York City Rea Hanna. General Drafting Company New York City Ernest Alpero. John Edward McGee. General Motors Acceptance Corp New York City.. A. Fredericks. General Motors Export Company New York Qty H. W. Hunsberger. General Products Shipping & Peter S. Steenstrup. Trading Corp Washington, D. C. . . . A. A. Glaze. New Orleans, La.. . .J. Karl Glessner. Washington, D. C....H. P. Merrill. General Railway Signal Company New YoTk City J. W. White. Georgetown University Washington, D. C.'.John B. Creeden. Georgetown University School of Foreign Service Washington, D. C. . .Edmund A. Walsh. George Washington University Washington, D. C. . .Miss Mary Magruder. Gidding, J. M. & Company New York City Stuart H. Frank. I. M. Gidding. Glushanck '& Hill New York City S. A. Glushanck. Gomez & Bros., C. A. Carlos, Nicara- gua, C. A New York City. . . . . .Pedro G. Rouhaud. Goodrich Rubber Company, B. F Akron, Ohio F. E. Titus. Goodyear Tire & Rubber Co., The Akron, Ohio Henry E. Coronado. Grace & Company, W. R New York City John F. Fowler. J. Louis Schaefer. 410 SECOND PAN AMERICAN COMMERCIAL CONFERENCE Graham Paper Company St. Louis, Mo A. L. Hawkins. Graham, Rowe & Company New York City Inis A. Rey. Great Lakes Trust Co Chicago, 111. W. W. Kneessi. Greeflf & Company, R. W New York City G. M. Loly. Greene, Tw€ed & Co New York City H. S. Demarest. Griffin, Chas. E New York City Chas. E. Griffin. Guaranty Trust Co. of New York New York Ci^ A. H. Baldwin. Willis H. Booth. Challen R. Parker. Guggenheim Bros New York City George W. Tower, Jr. Haas, John I., (Hop Merchant-Export-Import) ...Washington, D. C John I. Haas. Hackenberger Co., B. L Washingfton, D. C B. L. Hackenberger. Hansel! & Sons, Wm. S Philadelphia, Pa George W. Hansell. Hard & Rand New York City John W. Edmonds. Hardware Age New York City Edward H. Darville. Harris, Forbes & Co New York City Burnett Walker. Harriss, Magill & Co New York City Harvard University Cambridge, Mass. . . .Wallace W. Atwood. Hazleton Chamber of Commerce Hazleton, Pa. .......Walter W. Shultz. Heegstra, Inc., H. Walton, Merchandising— Advertising Chicago, 111 Walton W. Heegstra. Henderson, Wickham & Maiden Youngstown, Ohio ..John P. Barrett. Hercules Engineering Corp New York City Arturo R. Calvo.- Hernandez, Robinson & Co New York City J. Howard Eiger. Hewlett & Rice Washington, D. C Archie Rice. ^ Highway Industrial Assn Washington, D. C. . .Mrs. C. Montenyohl. H. G. Shirley, Towson, Md. Hill & Co., Edmund C. Trenton, N. J Edmund, C. Hill. Hispanic American Historical Review. .Washington, D. C... James A. Robertson. Holmes & Son, Inc Washington, D. C. . .Leon S. Ulman. Holstein Export Assn., Shipper of Dairy Cattle Herndon, Va Geo. R. Bready. Holt & Co New York City J. J. Slechta, Hopkins Syndicate (Press) Washington, D. C Randolph D. Hopkins Idaho, State of ;...'. Boise, Idaho . . . Illinois Manufacturers Association Chicago, III. ... Imbrie & Company New York City Indiana, State of Indianapolis, Ind Insurance Co. of North America. Richmond, Va. Interchurch World Movement New York City International Boundary Commissions. . .Washington, D. C. International Correspondence SchtSBls. .Scranton, Pa. International General Elec. Co Schenectady, N. Y. Jnternational Mountain Press Service . . Washington, D. C. , International Planters Corp. of N. Y — New York City. ._. International Trade Mark Bureau Havana, Cuba International Western Elec. Co New York City. . . Iron Age PubHshing Co., The New York City.. Iron Trade Review, The Cleveland, Ohio Gov. D. W. Davis. D. E. Felt. John M. Glenn. John S. Hammond. Fred C. Gardner. Henry D. Pierce. P. C. Cothron. U. O. Michaels. H. F. Lailamme. -J. H. Van Wagener. .Dan E. Carpenter. N. H. Prouty. Santiago B. Reachy. • E. A. Baldwin. Arnold S. Durrant, New York City. .James F. Kelly. .R. L Janer. .Mario Diaz Irizar. .E. M. Garcia. J. J. Gilbert. J. M. Jewett. .Edward H. Darville. .M. L. Feiser. APPENDIX 411 Irving National Bank , . . .New York City Daniel V. Casey. C. O. Corwin. . Wm. Robert Wilson. Irwin Auger Bit Company, The Wilmington, Ohio . .S. A. Mitchell. Iselin & Company, William New York City James W. Cromwell. Isherwood, J. W., Isherwood System of Ship Construction New York City...... J. W. Stewart. Island Petroleum Company, The Baltimore, Md. ....'. Wm. Werckenthien. Jaenecke-Ault Co Newark, N. J Chas. H. Ault. Jeffrey Mfg. Co.; The Columbus, Ohio Malcolm D. Jeffrey. Jelleff, Inc., Frank R... Washington, D. C... Frank R. Jelleff. Johns Hopkins University Baltimore, Md M. Badillo. Johns-Manville Co., H. W New York City. .... .J. A. Myler. C. W. Nagel, Chicago, III. Johnson & Johnson New Brunswick, N. J. Gonzalo O'Neill. Karminski & Co., Inc., Victor E New York City Victor E. Karminski. Kellogg Switchboard & Supply Co Chicago, 111 David J. Gillespie. Kerr Steamship Co., Inc.. . .■ New York City Victor M. Smith. Kilbourne & Jacobs Mfg. Co Columbus, Ohio J. R. Kilbourne. Kirstein Sons Company, E Rochester, N. Y Miss Emma J. Baird. K — P Corporation New York City Luis F. Corea. La Compagnie Sirene Washington, D. C. . .D. Paniag^a-6. La Hacienda Buffalo, N. Y Dr. J. H. T. Stempel. Lakewood Engineering Company Cleveland, Ohio Lloyd Brown. Charles A. Cleaver, (Washington, D. C.) Charles F. Lang. Roy G. Owens. "La Nacion" of Buelios Aires, Argentina New York City W. W. Davies. San Francisco, Cal.. . Tomas E. Stephens. "La Nacion" of Santiago, Chile New York City Severo Salcedo. "La Prensa" de Nueva York New York City Alfredo vdH. CoHao. La Suisse Import & Export Co New York City Ludwig Kissel. Latin American Press Association Washington, D. C....Jose Tible Machado. Leach & Co., Inc., A. B New York City Alfred O. Corbin. Lester Piano Company New York City D. R. Martinez. Philadelphia, Pa Lewery & Co., Inc., L. J New York City C. W. Sutton. Liberty Export & Import Corp New York City F. N. Grifford. Theodore' May. Lille, Chamber of Commerce of Lille, France C. O. P. Langlais. Lincoln Memorial University New York City John Wesley Hill. Lindemann & Hoverson Co., A. J Milwaukee, Wis A. J. Lindemann. Lloyd Brasileiro New York City J. Marcal. Los Angeles Chamber of Commerce. . . .Los Angeles, Cal Reese Llewellyn. Watt L. Moreland. Sylvester L. Weaver. Louisiana State Board of Health New Orleans, La Oscar Dowling. Louisiana, State of Baton Rouge, La R. G. Pleasant. Lucey Manufacturing Co New York City Dwight W. Fisher. Washington, D. C. Lulhi & Company, F. C New York City C. Grand Pierre. McGIellan & Campion Philadelphia, Pa Wm. McClellan. McClintic-Marshall Corp New York City H. C. Walton. 412 SECOND PAN AMERICAN COMMERCIAL CONFERENCE McGraw-Hill Company New York City ! . Washington, D. C....Wingrove Bathon. Philadelphia, Pa...... W. L. Campbell. Washington, D. C.... Morris H. Glazer. New York City Lewis F. Gordon. New York City Verne Leroy Havens. New York City Frederic W. Hume. New York City James H. McGraw. Washington, D. C... Robert H. May. New York City J. Malcolm Muir. New York City .D. MacGregor Stern. Baltimore, Md AUyn G. Whitehead. Maine, State of Augusta, Maine Gov. C. E. Milliken. Maldonado & Co., Inc San Francisco, Cal.. .Ferd. B. Maldonado. Manning, Maxwell & Moore New York City John N. Derby. Manufacturers Record Baltimore, Md Richard H. Edmonds. Manufacturing Agency Washington, D. C A. S. Lindstrom. Marbleloid Company Washington, D. C J. M. Baldwin. Marine Iron Works Chicago, 111 W. Stimson Barnes. Mrs. A. L. Barnes. Marquette University Milwaukee, Wis M. W. Thompson. Maryland, State of ■. -Baltimore, Md A. S. Goldsborough. Massachusetts A-gricultural College Amherst, Mass E. M. Lewis. Matlock Coal & Iron Corp New York City Cipriano Andrade, 3d. Maxwell & Chalmers Motor Co Detroit, Mich Walter M. Anthony. May Manton Fashions New York City Geo. C. Bladworth. Mediterranean Trading Co., Inc New York City Charles F. Hauss. Mengel & Bro. Co., C. C Louisville, Ky R. M. Cunningham. (Washington, D. C.) D. C. Harris. Mengel Box Company ; Louisville, Ky R. M. Cunningham, Washington, D. C. Mercantile Bank of the Americas New York City James F. Caslin. V. Gonzales. Alfred Meyer. Frank J. R. Mitchell. Walter S. Penfield, Washington, D. C. ., „ „ Walter Seligman. Mercantile Trust Co St. Louis, Mo Jack Suckermann. Festus J. AVade. Merchants Assn. of New York, The... New York City Wm. L. Fish. -., , , >, r . Wm. H. Mahoney» Merchants and Manufacturers Assn Baltimore, Md A S. Goldsborough. Merchants and Manufacturers Assn — Washington, D. C....M. A. Leese. Messer Company, Wm New York City Peter Messer Methodist Episcopal Church New York City Harry Farmer. Bishop W. F. Oldham ,, . T^ , T ,• ^ •■ William H. Teeter. Metio or French-Indian Council Chicago, 111 Major H T Taxon Metio Fuj-hunters Co-operative Assn... Chicago, 111 Major H J Taxon Metropolitan Life Insurance Co New York City Louis I Dublin Mexico, American Chamber of Commerce of •■■•...•...•■ New York City Tames Carson. Mexican Fibre Producers Assn., Ihe. . -New York City J N Zermeiio. Mexican Herald Mexico City Paul Hudson, ,, . ^ , , _ Washington, D. C. Mexican Telegraph Co New York City B H Reynolds. Michigan, State of Lansing, :\Iich Louis J. Rosenberg. ,,„ Ti i-u r- ^-1 Detroit, Mich. Miller Rubber Company, The Akron. 0hio C E Wagner. Minneapolis Civic and Commercial Association Minneapolis, Minn. ..C. S Langdon Minneapolis Steel Co., The New York City. . . . . .C. W. Haddon. Minnesota, State of Minneapolis, Minn.. ..C. G. Langdon. APpENDIX 413 Mississippi, State of Jackson, Miss F. G. Wisner, Mississippi Industrial Institute and Laurel, Miss. State College for Women Columbus, Miss Lina B. Ellington, Washington, D. C. Mississippi Valley Association Paris, Texas R. D. Bowen. New Orleans, La A. E. Pradillo. Mississippi Valley Trust Co St. Louis, Mo Thos. J. Kavanaugh. Mississippi Valley Waterways Assn St. Louis, Mo James E. Smith. Mobile, City of Mobile, Ala John M. McDuflBe. Monongah Glass Co Fairmont, W. Va Tobe Blumenthal. Montgomery Ward & Co Chicago, 111 F. Plaza. Monument Paint Co Indianapolis, Ind. . . .H. W. Adams. Moore & McCormack Co., Inc New York City A. V. Moore. Morgan's Sons Co., Enoch New York City Lewis H. Lipman. Morris, A. J New York City Louis C. Carpenter. Morris & Company Chicago, 111 G. A. Carlsen. 'Douglas F. O'Brien. Morrison & Co. (of Chile, S. A.) New York City Charles Henry Lee. Mosaic Tile Co. of Zanesville, Ohio New York City Herbert A. Ritchings. Motor & Accessory Mfgrs. Assn New York City M. L. Heminway. MuUer Mfg. Co., H Decatur, 111 C. T. Ford, Washington, D. C. Munson Steamship Line New York City Frank C. Munson. Musher & Company Washington, D. C. . . . N. Musher. Nagle Steel Co Pottstown, Pa Victor E. Karminski. Nartzik, J. J., Veneer Manufacturers. . .Chicago, 111 Harry L. Doty. Nash Motors Co., The ♦ Kenosha, Wis John A. Rose. National Aniline & Chemical Co., Inc... New York City F. W. Northridge, Jr. National Assn. o f Credit Men New York City B. B. Tregoe. National Assn. of Manufacturers New York City George S. Boudinot. James A. Emery, Washington, D. C. Nathan B. Williams, Washington, D. C. National Assn. for Protection of American Rights in Mexico New York City C. H. Boynton. National Bank of Commerce New York City J. B. Putnam. National City Bank New York City John H. Allen. Charles F. McHale. Jose Romero. Arthur H. Titus. Frederick Todd. F. A. Vanderlip. National City Company New York City Frederic M. Halsey. National Council of American Cotton Manufacturers Washington, D. C Louis H. Warner. National Credit Office. New York City James Allen Sweet. National Emergency Bureau of the Wooden Box Industry. Washington, D. C....J. C. Nellis. National Foreign Trade Council New York City O. K. Davis. National Implement and Vehicle Assn. .Chicago, 111. ' E. W. McCuUough. National Machine Tool Builders' Assn.. Worcester, Mass. ...Chas. E. Hildreth. National Magazine Boston, Mass Joe Mitchell Chappie. National Paper & Type Co New York City James Carson. C. C. Martin. H. H. Meyer. R. W. Orcutt. National Park Bank New York City George H. Kretz. National Petroleum Assn Washington, D. C. . .Fayette B^. Dow. National Railways of Mexico New York City F. P. deHoyos. National Rivers and Harbors Congress. Washington, D. C — S. A, Thompson. 414 SECOND PAN AMERICAN COMMERCIAL CONFERENCE Nevada, State of Carson City, Nev C. B. Henderson, Washington, D. C. Newark Public Library Newark, N. J John Cotton Dana. New England Coal & Coke Co Boston, Mass Henry S. Lyons. New England Fuel & Trans. Co Boston, Mass Henry S. Lyons. New Hampshire, State of Concord, N.- H George L. Whitford, Washington, D. C. New Jersey Zinc Co New York City W. P. Harden- bergh, Jr. New Mexico, State of Sante Fe, N. Mex., . .Dr. S. M. Johnson, Glencoe, N. Mex. Npw Orleans Assn. of Commerce New Orleans, La F. Brenegley. Col. Wm. C. Dufour. E. B. Harrington. W. W. Ingalls, Jr. F. B. Pearce. A. E. Pradillo. F. G. Prat. New Orleans Board of Trade New Orleans, La T. F. Cunningham. New Orleans, City of New Orleans, La William Allen, (Washington, D. C.) M. Behrman. Carl Giesson. C. A. Tessier, Jr. New Orleans Steamship Assn New Orleans, La Chas. Harrington. E. E. Lamberton. N. O. Pedrick. F. G. Prat. New Orleans Stock Exchange New Orleans, La E. M. Huger. New Orleans Sugar and Rice Exchange. New Orleans, La Bishop Perkins. Newport News Ship. & Drydock Co — Newport News, Va.. .H. L. Ferguson. New York & Cuba Mail S. S. Co New York City W. F. Paton. New York, Chamber of Commerce of the State of New York City J. Barstow Smull. New York Commercial, The New York City. W. E. Aughinbaugh. Arthur W. Crawford, Washington, D. C. New York Herald Washington, D. C. . .Thomas G., Alvord. New York, State of Albany, N. Y William H. Todd, New York City. New York Sun New York City Theo Lowe. H. Randolf Schmitt. New York, University of the State of. -Albany. N. Y Dr. A. S. Downing. New York World New York City Robert H. Murray, Mexico Qty, Mex. Niagara Fire Insurance Company New York City James C. Maconachy. Nickerson & Collins Co Chicago, III J. F. Nickerson. Niles-Bement-Pond Co Hartford, Conn M. B. Moore. Noel News Service New York City John V. Noel. Nordman & Co., J. J Pittsburgh, Pa. ... . .J. J. Nordman. Norfolk & Washington Steamboat Co.. -Washington, D. C. ..D. J. Callahan. Norfolk Chamber of Commerce —Board of Trade .Norfolk, Va Bdrton Myers. Fergus Reid. I. Walke Truxton. Noriega del Valle & Co., Inc New York City Leo Weinberg. North American Wood Products Corp. .New York City A. Proctor Smith. Northeast Savings Bank Washington, D. C....W. Reginald Lewis. Northern Trust Company— Bank, The. .Chicago. Ill Albert W. Bullard. Northwestern Malleable Iron Co Milwaukee, Wis Fred L. Sivyer. APPENDIX 413 Oakland Chamber of Commerce Oakfield, Cal George A. Ames. J. R. Christy. J. A. Elston, M. C, Washington, D. C. D. J. Hanlon. W. W. Johnson. H. S. Robinson. Ohio Brass Company, The Mansfield, Ohio Alfred B. Edes. Ohio Falls Iron Co New Albany, Ind Geo. M. Clark. Ohio, State of Columbus, Ohio . . . .W. S. Rowe, Cincinnati, Ohio. Oklahoma, State of Oklahoma City, Okla. C. B. Ames. J. W. Ballard, Washington, D. C. Major R. A. Billups, Tulsa, Okla. C. D. Carter, M. C, Washington, D. C. Scott Ferris, M. C, Washington, D. C. T. P. Gore, U. S. S., Washington, D. C. W. W. Hastings, M. C, Washington, D. C. E. B. Howard, M. C, Washington, D. C. B. B. Jones, Washington, D. C. J. McCHntic, M. C, Washington, D. C. T. D. McKeown, M. C, Washington, D. C. D. P. Marum, Woodward, Okla. D. T. Morgan, M. C, Washington, D. C R. L. Owen, U. S. S.. Washington, D. C. Houston B. Teehee, Washington, D. C. J. B. Thompson. M. C. Washington, D. C. Oklahoma, The University of Oklahoma City, Okla. Dr. A. B, Adams. Washington, D. C. Orange Chamber of Commerce Orange, Texas H. 5. L'Hommedieu. Orange, Va., Observer Orange, Va Miss B. G. Robinson. Packard Motor Car Co New York City Fred Cardway. Panama Railroad Co New York City E. A. Drake. Pan American Consular Association of Chicago Chicago, 111 B. Singer. Pan American Magazine Rew York City Miss G. Mandujano. Pan American Petroleum & Transport Co , . .New York City Norman Bridge. Pan American Round Table Tarrytown, N. Y Miss J. H. Faverell. Miss C. E. Mason. Pan American Society of the U. S New York City John S. Prince. Pan American Union Washington, D. C. . .John Barrett. Francisco J. Yanes. William A. Reid. Pan American Wireless Tele- William C. Wells. graph & Telephone Co New York City Edward J. Nally. 416 SECOND PAN AMERICAN COMMERCIAL CONFERENCE Pan Union Company New York City C. C. Broan. Patton Paint Company New York City Hiarold B. Gregory. Peck & Co., William E. New York City Morris B. Bogart. Pellerin Furniture Co Jacksonville, Fla. ...M. P. Capen. Pelton Water Wheel Co., The New York City Frederick W. Gay. Pennsylvania A. S. League Philadelphia, Pa J. H. Brandt.' B. L. Scott, Pittsburgh, Pa. Pennsylvania Railroad Co Philadelphia, Pa George D. Dixon. Pennsylvania Steel Export Co Philadelphia, Pa Warren W. Baker. Peruvian Copper & Smelting Co New York City Jos. A. Vandergnft. Peruvian Steamship Co New York City Antonio Fea. Petersburg, Va., Chamber of Commerce. Petersburg, Va William M. Martin. Philadelphia Board of Trade Philadelphia, Pa. ... .William R. Tucker. Philadelphia Chamber of Commerce. . .Philadelphia, Pa James B. Bonner. N. B. Kelly. Philadelphia Commercial Museum Philadelphia, Pa Dudley Bartlett. Horace S. Morrison. Wilfred H. Scott. W. P. Wilson. Philadelphia Quartz Co. Philadelphia, Pa J. P. Elkinton. Pictorial Review Company New York City Romulo M. De Mora. Pillsbury Flour Mills Co Minneapolis, Minn. . .Walter C. Smith. Pittsburgh Chamber of Commerce Pittsburgh, Pa R. J. Seaman. Planographic Equipment Co. of N. Y.. .Dover, N. J Walter B. Pitkin. Portalis & Co., Ltd., of Buenos Aires. . .New York City Daniel W. Rowland. Portland, Ore., Chamber of Commerce . Portland, Ore F. A. Douty. Pratt & Company, Inc., E. E New York City E. E. Pratt. Pratt Engineering & Machine Co New York City. C. A. Murphey. Prudential Insurance Co Newark, N. J Fred. L. Hoffman. Public Service Traffic Bureau Co., The. Dayton, Ohio F. W. Aiken. J'ublishers Association New York City A. C. Pearson. Railway Age New York City Charles W. Foss. Ralston Steel Car Co., The Columbus, Ohio Creuzet Vance. Read Machinery Co. York, Pa H. Read. Recording & Computing Machine Co., The Dayton, Ohio Will I. Ohmer. Redfield-Kendrick-Odell Co New York City E. A. Kendrick. Regal Shoe Co.. Boston, Mass Henry H. Morse. Reiser, Curioni & Carozzi New York City Albert J. Archibald. Rhoads & Sons, J. E Philadelphia, Pa J. E. Rhoads & Sons. Rice Institute, The Houston, Texas Edgar Odell Lovett. Robertson Company, H. H Baltimore, Md O. O. Robinson. Roebling's Sons Co., John A New York City Walter C. Kretz. John W. Whelan. Washington, D. C. Rolled Plate Metal Co New York City John S. Pendleton. Salmen Lumber Company New Orleans, La.. . .Frederick W. Salmen. Salvage Syndicates, Inc Chicago, 111 C. A. Mann. Sanderson fit Porter New York City Chas. L. Parmelee. San Diego Chamber of Commerce San Diego, Cal Dr. H. P. Newman. Santa Cecilia Sugar Corp New York City M. H. Lewis. Sauer Company, C. F Richmond, Va W. H. Leek. Savannah Board of Trade Savannah, Ga Charles G. Edwards. Schell Chemical Company, Inc New York City H. H. Schell. Schiflmann Company, R .St. Paul, Minn.. . . . . .R. J. Schiffmann. Schneider & Cie (Le Creusot Works).. New York Branch. . .Edgard Cassan, Washington, D. C. School of American Research Santa Fe, N. Mex.. . .Edgar L. Hewett. Schwartz & Company, Guatemala New York City Adolfo Stahl. Scovil, Inc., Medley New York City Medley Scovil. APPENDIX 417 Seaman, Inc., Frank New York City Lewis G. Muniz. beattle Chamber of Commerce Seattle, Wash R. A. Ballinger. H. C. Cantetow. Second Ward Savings Bank Milwaukee, Wis. ...Robert M. Lobanoff. Sharpies Separator Co., The West Chester, Pa....C. M. Burdette. Ralph B. Johnson. Silvex Company, The South Bethlehem, Pa.E. T. H. Hutchinson. Smith & Co., Inc., Claude M New York City O. H. Cushwa. F. D. Gearhart. V. B. Lund. Smith Brokerage Co., Herbert W Chicago, 111 Herbert S. Smith. Smyth Corporation, The R. J New York City Robert J. Smyth. Solomon Co., Inc., T. M New York City T. M. Solomon. South American Land & Development Co Louisville, Ky A. L. Davis. South American Publishing Co New York City Wing B. Allen. South Atlantic Maritime Corp Washington, D. C. . .Frank C. Joubert. South Carolina, State of Columbia, S. C N. B. Dial, Washington, D. C. Robert E. Nickles, Washington, D. C. Southern Railway Washington, D. C Emerson Lucas. H. G. McLean. T. C. Williams. Southern Railroad Lines New Orleans, La.. . .Landon B. Smith. Southgate & Co., T. S., Wholesale Merchants Norfolk, Va Spang, Chalfant & Co., Inc Pittsburgh, Pa J. S. Thomas. Spanish American Bureau of Infor New York City Spanish American School of Languages. Philadelphia, Pa B. de Quintero. Spanish American Trade Journal, The.. New York City Antonio M. Opisso. Spice Mill Publishing Co., Inc New York City B. F. Simmons. Spokane Chamber of Commerce Spokane, Wash Jas. A. Ford. Standard Daily Trade Service New York City Henry Utley Milne. Standard Oil Co. of New York New York City F. Taylor Cause. Standard Shipbuilding Corp Schooler's Island, Staten Isl., N. Y... Antonio Caragol. Emilio S. Godoy. Standard Statistics Co., Inc New York City Luther L. Blake. William Barrett Cass. St. Louis Chamber of Commerce St. Louis Sebastiao Sampaio. St. Louis Commercial News and Labor Gazette St. Louis George W. Briggs. Stockton & Stockton New York City Chas. W. Stockton. Strange Paper Co., John Minasha, Wis John Strange. Swift & Company Chicago, 111 R. D. Rynder. A. S. Brant, Washington, D. C. Synod of East Pennsylvania Philadelphia, Pa Silas D. Daugherty. Tabulating Machine Co., The New York City O. E. Braitmeyer. Henry C. Cole, Washington, D. C. Tennessee Manufacturers Assn Chattanooga, Tenn...John L. Newkirk, Jr. Tennessee, State of Nashville, Tenn John L. Newkirk, Jr., Chattanooga, Tenn. Paul J. Krueso, Chattanooga, Tenn. Texas Chamber of Commerce Houston, Texas J. S. CuUinan. Texas Company, Mexico and South America Washington. D. C. . . .Sherman Ford. Texas Company New York City P. Luna y Parra. 418 SECOND PAN AMERICAN COMMERCIAL CONFERENCE Texas, State of Austin, Texas Clay Stone Briggs, Washington, D. C. Zach Lamar Cobb, El Paso, Texas. Thomas & Co., C. K New York City Arthur H. Diamant. Thorne & Co., Inc., John W New York City E. T. Simondetti. Tiffany & Co New York City Dr. George F. Kunz. Trading Engineers, Inc Chicago, III E. J. Brunning. D. L. Derrom. L. Romero-Sanson. Trans Ocean Finance Co New York City F. N. Grifford. Travel Club of America New York City Henry Collins Walsh. Trinity Press .Washington, D. C G. W. Ayers. Tuck & Co., G. O New York City R. I. Janer. Underwood Typewriter Co New York City. . . . Union Bag & Paper Corp New York City. . . . Union Construction Co Oakland, Calif. . . . Union Trading Co Buenos Aires, Argentina United Fruit Co Boston, Mass United Press New York City United States Bulletin Washington, D. C. United States of America, ' Chamber of Commerce of Washington, D. C, United States of America, Chamber of Commerce «-the Argentine Republic of the Buenos Aires, Argentina U. S. Cuban Allied Works Eng. Corp.. .New York City. United States Forwarding Co New York City. U. S. Maritime & Development Co Detroit, Mich. . United States Rubber Export Co., Ltd.. Rio de Janeiro, Brazil United States Steel Products Co New York City. Universal-Chemical Sprinkler Corp New York City Utah, State of Salt Lake City, Utah .C. B. Williams. .Albert E. Osborn. .W. W. Johnson. .Pablo Roth. .Eugene W. Ong. .Nobe Taylor. .M. Fernandez dela Regata. .Elliot H. Goodwin. Homer L. Ferguson, Newport News, Va. .A. B. Howard. M. D. Carrel, New York City. .William L. D'Ober. .Dr. Leopold Perutz. .Sidney Story. .John C. Watson. .T. J. Digan. H. F. Knapp, (Washington, D. C.) Pemberton Smith. Eugene P. Thomas. .James S. Dodge. .Reed Smoot, U. S. S. Vero Trading Co., Inc New York City L. S. Moos. Virginia Ship. Corp., and Wash- ington and Old Dominion Railway. Washington, D. C... Colin H. Livingstone. Washington Board of Trade Washington, D. C. . Washington Chamber of Commerce. .. .Washington, D. C. , Washington, The Public Library Washington, D. C. .Milton E. Ailes. Charles J. Bell. Charles S. Douglas. Harry V. Haynes. D. W. Thayer. • Milton E. Ailes. T. A. Finigan. Robert N. Harper, H. L. Offutt, Jr. Julius I. Peyser. Chas. W. Semmes. .Geo. F. Bowerman. APPENDIX 419 Washington Star Washington, D. C A. D. Fairbairn. Wathen Milling Co Louisville, Ky Geo. A. McCrann. Welsbach Street Lighting Co. of A.. ..Philadelphia, Pa Frank L. Rumble. Wendt Pub. Co., W. F Buffalo, N. Y W. F. Wendt. Wessel, Duval & Co New York City G. L. Duval. Western Pipe & Steel Co. of Calif San Francisco, Calif.. J. W. Mason. Frederick Thompson. West Virginia Coal Operators' Assn Charleston, W. Va.. .J. G. Bradley. West Virginia, State of Charleston, W. Va...C. C. Dickinson, Maiden, W. Va. Wetten & Matthews Chicago, 111 Emil C. Wetten. Whaley-Eaton Service Washington, D. C A. D. Fairbairn. Wheeler, Mechlin & Rhea New York City Frank Rhea. Whitney-Central National Bank New Orleans, La Eugene H. Roberts. Wholesale Grocery Tampa, Fla Col. C. H. Spencer. Wilson & Co Chicago, III H. M. Howard. Winter Co., The M. A Washington, D. C. . . .M. A. Winter. Winthrop College Rock Hill, S. C D. B. Johnson. Wisconsin, State of M'adison, Wis Fred L. Sivyer. • Milwaukee, Wis. Theo. O. Vilter, Woman's Chamber of Commerce, Milwaukee, Wis. National and International Washington D C. . . Mrs. K. C. Gould, New York City. Wood & Co., Inc., Harry C New York City A. H. Beisel. World Outlook New York City Willard Price. Worthington Pump & Machinery Corp. .New York City F. T. Fish wick. F. H. Jones. J. E. Sague. Charles E. Wilson. W. B. Jennings, Buffalo, N. Y. Y. M. C. A., International Committee. .New York City John R. Mott. York Chamber of Commerce .York, Pa Arthur B. Farquhar. Youroveta Home & Foreign Trade Co., Inc New York City L. M. Waurgaft. Y. W. C. A. National Board New York City Miss E. Anderson. Miss Persis Breed. Miss Katherine Eddy. Miss Edith Keeley. Mrs. J. F. Shepard. Zionist Bureau Washington, D. C. . . . A. A. Lustig. 420 SECOND PAN AMERICAN COMMERCIAL CONFERENCE ALPHABETICAL LIST OF OVER ONE THOUSAND INDIVIDUALS WHO ACCEPTED INVITATIONS OR REGISTERED AS IN ATTENDANCE. Acevedo, Justo, Mexican Commercial Agent, 71-73 Murray St., New York, N. Y. Acuna, Alberto, of Chile, 61 Broadway, New York, N. Y. Adams, Dr. A. B., The University of Oklahoma, Norman, Oklahoma. Adams, Howard W., (Major, U. S. A.), Indianapolis, Ind. Additon, Forrest, Chattahoochee Furniture Co., Flowery Branch, Georgia. Aiken, F. W., Public Service Traffic Bureau Co., Dayton, Ohio. Ailes, Mliton E., Washington Chamber of Commerce, Riggs Bank, Washington, D. C. Ajax Rubber Company, Inc., 222 West 57th St., New York City. Albertson, E. J., War Trade Board, Washington, D. C. Albes, C. E., Acting Editor, English Bulletin, Pan American Union, Washington, D. C. Albrecht, Charles, Asst. to Foreign Trade Adviser, Dept. of State, Washington, D. C. Allen, John H., Vice Pres., National City Bank, 55 Wall St.. New York City. " Allen, J. H. Dulles, President, Enfield Pottery and Tile Works, Enfield, Pa. Allen, William, Representing New Orleans, 1111 Munsey Building, Washington, D. C. Allen, Wing B., Publisher, South American Publish- ing Co., 310 Lexington Avenue, New York, N. Y. A I pens, Ernest, General Drafting Co.; New York, N. Y. Alvarez Calderon, Carlos, New Rochelle, N. Y. Alves de Lima, J. C, Consul General Inspector of Brazil "^ Consulates, 528 W. 136th Street, New York, N. Y. Alvord, T. G. Correspondent, New York Herald, 1834 Columbia Road, Washington, D. C. Amador, J., Aguascalientes, Mexico. American Society of Mechanical En- gineers, 29 W. 39th St., New York, N. Y. Ames, Hon. C, B., Oklahoma City, Oklahoma. Ames, C. B., Foreign Freight Forwarders, Davies, Turner & Co., 39 Pearl St., New York, N. Y. Ames, Edvi^ard W., Exporter, American Steel Export Co., 233 Broadway, New York City. Ames, George A., President, Moore Shipbuilding Co., Oakland Chamber of Commerce, Oakland, Cal. Anchorena, Ingeniero Jacinto, Care Argentine Consul General, 17 Battery Place, New York, N. Y. Anderson, Miss Esther, National Board of Y. W. C. A., 600 Lexington Ave., New York City. Anderson, Robbins B., Acting Manager, Insular and For- eign Division, A. R. C, Honolulu, Hawaii. Andrade, Cipriano, 3rd., Foreign Dept., Matlock Coal and Iron Corporation, 52 Vanderbilt Ave., New York City, N. Y. Andrews, Kenneth, Managing Editor, "La Revista del Mundo," Doubleday, Page & Co., 120 West 32nd St., ;New York, N. Y. Anthony, Walter M., Treasurer, Maxwell Motor Co., Inc., 1808 Broadway, New York. Archibald, Albert J., American Representative and Buyer, Reiser, Curioni & Carozzi, 52 Broadway, New York, N. Y. Arellano, Carlos, of Mexico, McAlpin Hotel, New York, N. Y. Arellano, Guillermo, Mexico, D. R, Mexico. Arenales, Alfonso, Student, 1533 Eye St., N. W., Washington, D. C. Arias, Abdiel, Vice Consul, Republic of Panama, Baltimore, Md. Arnold, Eugene F. Attorney and Counsellor at Law, Washington, D. C. Arnold, John J., Vice Pres., First National Bank of Chicago, Chicago, 111. Aughinbaugh, Willian^ E., Editor, The New York Commercial, 611 West 27th St., New York, N. Y. Ault, Chas. H., Jaenecke-Ault Co., Newark, N. J. Ayers, G. W., Publisher, Trinity Press, 55 Home Life Bldg., Washington, D. C. Babcock, Charles 'E. Acting Lib., Columbus Memorial Library, Pan American Union, Washington, D. C. Badiilo, M., Johns Hopkins University, Baltimore, Md. Baer, Carlyle S., Consul of Haiti, Chicago, 305 N. Bloomington St., Streator, 111. Bailey, Linus M., Business Representative Bureau, 429 Munsey Bldg., Washington, D. C. Baird, Emma J., Export Mgr., K Kirstein Sons Co., Cor. Franklin and Andrews, Rochester, N. Y. Baker, .Warren W., President, Pennsylvania Steel Ex- port Co., 640 Widener Bldg., Philadelphia, Pa. Baker, Charles Whiting, Consulting .Engineer, 31 Nassau St., New York, N. Y. Baker, Sherman, Commander, U. S. Navy, Navy De- partment (Operations), ' Washington, D. C. STDIX 421 Baldwin, A. H., Foreign Trade Bureau, Guaranty Trust Co., 40 Broadway, New York City. Baldwin, E. A., Dept. Manager, Int. Gen. Elect. Co., Schenectady, N. Y. Baldwin, J. M., Mlarbleoid Company, 711 13th St., N. W., Washington, D. C. Ballard, Hon. J. W., Representing State of Oklahoma, Care Senator R. L. Owen, Washington, D. C. Bal linger, R. A., Seattle Chamber of Commerce, Seattle, Washington. Bankell, George W., Foreign Freight Contractors, D. C. Andrews & Co., Inc., 27 Water St., New York, N. Y. Bard, Dr. H. E., Secretary, Argentine American Chamber of Commerce, New York, N. Y. Baringer, Daniel Moreau, Consulting Mining Engineer and Geologist, 1242 Real Estate Trust Bldg., Philadelphia, Pa. Barnard, Chas. B., 153 N. Carolina Ave., S. E., Washington, D. C. Barnes, Mrs. A. L., Marine Iron Works, Chicago, III. Barnes, W. Stimson, Secretary, Marine Iron Works, 2036 Dominick St., Chicago, III. Barr, R. F., U. S. Shipping Board, 909 13th St., N. W., Washington, D. C. Barranco, Augustine P., Lawyer, 31 Nassau St., New York City. Barrera Guerra, Servando, Third Sec. of the Mexican Embassy, Washington, I>. C. Barrett, John, Direc. Genl. Pan American Union," Washington, D. C. Barrett, John P., Attorney, Henderson, Wickham & Maiden, 232 Lincoln Ave., Youngstown, Ohio. Barrett, Nelson N., Care of M. M. Upson, Englewood, N. J. 422 SECOND PAN AMERICAN COMMERCIAL CONFERENCE Barrett, Robert S., Portalis & Co., Ltd., Buenos Aires, Argentina. Bartlett, Dudley, Chief, Foreign Trade Bureau, The Commercial Museum, 34th St., below Spruce St., Philadelphia, Pa. Bassett, Herbert, Research Asst., War Trade Board, Washington, D. C. Bathon, Wingrove, Correspondent, McGraw-Hill Engi- neering Publications, Washington, D. C. Batista, 'Eugene, Georgetown University, Washington, D. C. Beecroft, David, Directing Editor, The Class Jour- nal Co., 239 West 39th St., New York City. Beem, J. S., West Indies and Caribbean Trades, U. S. Shipping Board, 1726 Willard St., N. W., Washington, D. C. Behrman, Martin Mayor, City of New Orleans, 228 Pelican Ave., New Orleans, La. Belden, L. H., Latin American Division, , War Trade Board, Washington, D. C. Bell, Charles J., American Security & Trust Co., Washington, D. C. Bengoechea, Ramon, Consul General of Guatemala, 12 Broadway, New York, N. Y. Bennett, Claude S., Congressional Information Bureau, Southern Bldg., Washington, D. C. Bennett, Fred S., William L. Barrell Co., 8 Thomas St., New York City. Bensabat, Leon N., Mfrs. Agent and Importer, Care H. W. St. John & Co., 37 Pearl St., New York, N. Y. Betts, H. S., Mechanical Engineer, Forest Serv- ice, Department of Agriculture, 930 F St., Washington, D. C. Blllups, Major Richard A., Tulsa, Oklahoma. Bladworth Geo. C, M!ay Manton Fashions, 530 West 113th St., New York, N. Y. Bla'ke, Luther L., Pres., Standard Statistics Co., Inc., 47 West St., New York City. Blanchet, Albert, Secretary of Legation of Haiti, 1440 R St., Washington, D. C. Blumenthal, Tobe, Monongah Glass Co., Fairmont, . W. Va. Bogart, Morris B., Manager of the River Plate Dept., WiUiam E. Peck & Co., 104 Pearl St., New York, N. Y. Belles, A. Eugene, Manager, "La Revista del Mundo,'' Doubleday, Page & Co., 120 W. 32nd St., New York City. Bond, T. T., Manager, Traffic Department, Fair- banks, Morse & Co., 30 Church St., New York City. Bonet, P. A., Commercial Attache, Cuban Lega- tion, Washington, D. C. Bonner, James B., Director, Philadelphia Chamber of Commerce, 1734 Widener Bldg., Philadelphia, Pa. Boomer, R. De F. Boomer & Co., Inc., New York, N. Y. Booth, W. H., Vice President, Guaranty Trust Co., 140 Broadway, New York City. Boselli, Louis, Importer of Panama Hats, Boselli Jeramaz Co., IS N. 4th St., Paterson, N. J. Bo'Udinot, George S., National Assn. of Manufacturers, New York, N. Y. Bowdry, J. S., Employee Panama Canal, Mrs. T. S. Bowdry, Ancon, Canal Zone, Box 155. Bowen, R. D., Director, Mississippi Valley Assn., Paris, Texas. Bowen W. A., Farmers' Fireside Bulletin, Arlington, Texas. Bowerman, George F., Librarian, The Public Library, Washington, D. C. Boynton, C. H., Executive Director for Protection of American Rights in Mexico, 347 Sth Ave., New York, N. Y. Bradley, J. G., Pres., West Virginia Coal Opera- tors' Association, Charleston, W. Va. APPENDIX 423 Bradner, James P., Major, U. S. A., 4th and Missouri Ave., Washington, D. C. Braitmeyer, O. E., Assistant General Manager, The Tabulating Machine Co., SO Broad St., New York City. Brande, Fra,nk A., The Coastwise Ship Building Co., Wooden Ship Building, Foot of Andre St., Baltimore, Md. Brandt, J. H., Pennsylvania A. S. League, Philadelphia, Pa. Brant, A. S., Office Manager, Swift & Co., Washington, D. C. Braunecker, Miss Elizabeth, Bureau of Research, War Trade Board, Washington, D. C. Bready, Geo. R., Breeder and Dealer in pure bred Holsteins, Holstein Export Assn., Shipper of Dairy Cattle, Herndon, Va. Breed, IVIiss Persis, National Board of Y. W. C. A., 600 Lexington Ave., New York, N. Y. Brenegiey, F., Assistant Cashier, Commercial Na- tional Bank, New Orleans, La. Bridge, Norman, Pan American Petroleum and Transport Co., 120 Broadway, New York City. Briggs, Hon. Clay Stone, M. C. from Texas, Washington, D. C. Briggs, George W., Publisher, St. Louis Commercial News and Labor Gazette, St. Louis, Mo. Broan, C. C, President, Pan Union Company, 150 Nassau St., New York, N. Y. Brodex, C. R., New Willard, Washington, D. C. Brogstodt, Harry, Montgomery City, Mo. Brower, Jule F., Consul General of Guatemala and Honduras, Chicago, III. Brown, Charles Paul, Lawyer, Brown & Cooksey, 10 Wall St., New York City. Brown, Henry G., Blair, Parke Coal & Coke Co., Philadelphia, Pa. Brown, Jr., J. R., Publisher, CobleskiU, N. Y. Brown, Lloyd, Vice President, Lakewood Engineer- ing Co., Berea Road, Cleveland, Ohio. Brownlow, Hon. Louis, President Board of District Com- missioners, Washington, D. C. Brownson, H. L. Verdon, Nebraska. Bruere, Henry, The American Metal Co., Limited, 61 Broadway, New York City. Brunning, E. J., Trading Engineers, Inc., 1641 Edison Bldg., Chicago, III. Bryan, J. Wallace, Consular Agent of Peru, 1306 Continental Bldg., Baltimore, Md. Bryson, F. H., Washington Mgr., Eugene Dietzgen Company, 407 10th St., N. W., Wasliington, D. C. Bryson, W. A., 1002 M St., N. W., Washington, D. C. Bullard, Albert W., Vice President, The Northern Trust Company Bank, 50 South La Salle St;, Chicago, 111. Bunster, Enrique L., Chilean Embassy, Washington, D. C. Burdette, C. M,, Vice President and General Mana- ger, The Sharpless Separator Co., West Chester, Pa. Burke, 'Edmund J., Fordham University, New York, N. Y. Burlingham, Wm., Vice President, Adams, Lovell, Bur- lingham, Inc., Marine Engineers, New York, N. Y. Busel, A. H., Harry C. Wood & Co., Inc., 2 Rector St., New York. Bustos, Enrique, Consul of Chile, Philadelphia, Pa. Biutler, Paul, Paper, J. W. Butler Paper Co., 223 West Monroe St., Chicago, 111. Butler, Sheldon L., War Trade Board, Washington, D. C. 424 SECOND PAN AMERICAN COMMERCIAL CONFERENCE Caideron, Sr, Don Ignacio, E. E. and M. P. of Bolivia, 1633 Sixteenth St., Washington, D. C. Callahan, D. J., Second Vice Pres. and Genl. Mgr., Norfolk and Washington Steam- boat Co., Washington, D. C. Calley, Mrs. Joan, Washington Representative, Films of Business, Candler Bldg., 220 W. 42nd St., New York, N. Y. Calvo, Arturo R., Vice Pres., Hercules Engr. Corp., 501 Fifth Ave., New York City. Calvo y Arias, Rafael, Consul of Mexico, 1207 Munsey Bldg., Baltimore, Md. Camacho, Manuel de J. Consul Genl. of the Dominican Rep., New York, N. Y. Cambourl, Manuel, Georgetown University, Washington, D. C. Cameron, Harry Frank, Lieut.-Col. Engineers, U. S. A., Room 2750 Munition Bldg., Washington, D. C. Campbell, W. L., McGraw-Hill Co., 935 Real Estate Trust Bldg., Philadelphia, Pa. Cantelow, H. C, Seattle Chamber of Commerce, Seattle, Wash. Capen, M. P., Pellerin Furniture Co., 930 West Union St., Jacksonville, Fla. Caiperton, William Banks,- Rear Admiral, United States Navy, Army and Navy Club, Washington, D. C. Caragot, Antonio B., Treasurer Standard Shipbuilding Corporation, Schooler's Island, Staten Island, N. Y. Cardway, Fred, Mgr., Foreign Distribution Offices, Packard Motor Car Co., 1861 Broadway, New York. N. Y. Carlsen, G. A., Asst. Foreign Mgr., Morris & Co., Chicago, 111. Carpenter, Dan E., Intrl. Correspondence Schools, Scranton, Pa. Carpenter, Louis C, Ocean Freight Contractor, Traffic Manager, A. J. Morris, 44 Whitehall St., New York, N. Y. Carr, Herbert J., Carr Brothers, 65 Broadway, New York, N. Y. Carr, Wilbur J., Director of the Consular Service, Department of State, Washington, D. C. Carrel, M. D., American International Corp., Room 3714, 120 Broadway, New York, N. Y. Carrington, J. B., Representing State of Alabama, Anniston, Ala. Carrlzosa, Camilo, Mgr., G. Amsinck & Co., Inc., 90 Wall St., New York, N. Y. Carroll, Mitchell, Art and Archaeology — The Octagon, Washington, D. C. Carson, James, Representing American Chamber of ■Commerce of Mexico and Na- tional Paper and Type Co., 32 Burling Slip, New York, N. Y. Carter, Hon. Chas D., Representative, State of Oklahoma, Washington, D. C. Casey, Daniel V., Dept. of Publicity, Adv. and Busi- ness Research, Irving National Bank, New York, N. Y. Caslin, James F., Mercantile Bank of the Americas, New York, N. Y. Cass, William Baret, Editor, Standard Statistics Co., Inc., 47 West St., New York, N. Y. Cassan, Edgard, Schneider & Cie (Le Creusot Works), New York Branch, 901 20th St., N. W., Washington, D. Ct Catchings, Benjamin, Counselor at Law, 43 Exchange Place, New York, N. Y. Cespedes, Dr. Carlos Manuel de, E. E. and M. P. of Cuba, 2630 Sixteenth St., Washington, D. C. Chamorro, Sr. Don Diego Manuel, E. E. and M. P. of Nicaragua, 2853 29th St., Washington, D. G Chandler, Charles Lyon, Foreign Trade Dept., Corn Ex- change National Bank, Philadelphia, Pa. Chaplin, L. G., Director of Sales, War Dept., Washington, D. C. Chappie, Joe Mitchell, National Magazine, 944 Dorchester Ave., Boston, Mass. Cheek, F. J., Clerk, War Department, 54 V St., N. W., Washington, D. C. Christy, J. R., Gen. Mgr. Alameda Plant, Bethle- hem Shipbuilding Corp., Oakland Chamber of Commerce, Rep., Oakland, Cal. Clark, Geo. M., President, Ohio Falls Iron Co., 4th and River Sts., New Albany, Ind. Claudet, Joseph, Vice President, American Bank Note Co., 70 Broad St., New York, N. Y. Clausen, John, Vice President, Chemical National Bank of New York, 270 Broadway, New York, N. Y. Cleaver, Charles A., Lakewood Engineering Co., Somerset House, Washington, D. C. eleven, N. Andrew N., Teacher, 1420 Irving St., Washington, D. C. Cobb, Zach Lamar, Hon., Representing State of Texas, El Paso, Texas. Cobo, Adriano, Export Mgr., Fox Bros. & Co., 126 Lafayette St., New York, N. Y. Cole, Miss Emilie M., The Brighton, Washington, D. C. Cole, Brig. Gen. E. K., U. S. Marine Corps, Navy Dept., Washington, D. C. Cole, Henry C, Salesman, Tabulating Machine Co., 622 Munsey Bldg., Washington, D. C. Collao, Alfredo vdH., Publisher, La Prensa de Nueva York, 24S Canal St., New York, N. Y. Collier, Frank W., Director of Research, American University, Washington, D. C. Collins, James H., Investigator in Market Survey, De- partment of Agriculture, Washington, D. C. Collins, Rev. M. D., Priest, Lecturer, Traveler, Affiliated Bureaus, Jackson, Mo. Collins, William F., Secy., Committee on Commerce and Marine, American Bankers Assn., New York, N. Y. fiiix 425 Colver, W. B., Chairman, Federal Trade Com., Washington, D. C. Connett, Burton & Co., Inc., Importers and Exporters, 17 Battery Place, New York, N. Y. Constantinople, P. V., Georgetown University, Washington, D. C. Conway, Wm. H., Georgetown University School of Foreign Service, Washington, D. C. Cookei, Charles Lee, Social Sec, Department of State, Washington, D. C. Cope, Jesse D., Council of National Defense Bldg., Washington, D. C. Corbacho, J. M., Peruvian Congressman and Archae- ologist, Lima, Peru. Corbett, 'Edward L., Physician and Lawyer, 336 Alexander Ave., New York, N. Y. Corbin, Alfred O., Manager Foreign Dept., A. B. Leach &'Co., Inc., 62 Cedar St., New York, N. Y. Corby, W. S., Manufacturer, The Corby Co., Langdon Station, Washington, D. C. Corcoran, John A., Georgetown University School of Foreign Service, Washington, D. C. Cordero, C. de, Ad.-Manager, ■ E. I. DuPont de Nemours Export Co., New York, N. Y. Corea, Louis F., Vice President and Treasurer, K-P. Corporation, 347 Madison Ave., Suite 1809, New York, N. Y. Coronado, Henry E., Member Export Department, The Goodyear Tire and Rubber Co., Akron, Ohio. Coronado, JosS M., Spanish Translator, Pan American Union, Washington, D. C. Cortadelias, Alberto, Secretary of the Bolivian Legation, 1908 Q St., Washington, D. C. Corwin, C. O., Irving National Bank of New York, New York, N. Y. Costigan, Ignatius J., Lawyer, Union Trust Bldg., Washington, D. C. 426 SECOND PAN AMERICAN COMMERCIAL CONFERENCE Cothron, P. C, Insurance Co. of North America, Richmond, Va. Coutinho, Joachim De S., Portuguese Translator, Pan Ameri- can Union, Washington, D. C. Coxe, Macgrane, Lawyer, 233 Broadway, New Yorlc, N. Y. Craig, V. H., U. S. Shipping Board, Washington, D. C. Crawford, Arthur W., New York Commercial, Washington, D. C. Craemer, Henry, President, Craemer Trading Corp., and Craemer Nail and Supply Co., 2 Rector St., New York, N. Y. Creeden, John B., President, Georgetown University, Washington, D. C. Crinkshaney, Hanntson, Wilmington, Del. Crofutt, M. IE., Secretary to the Director, Bureau of Research and Statistics, War Trade Board, Washington, D. C. Cromwell, James W., Mercantile Banker, William Iselin & Co., 357 Fourth Ave., New York, N. Y. Grossman & Co., L. D., Forwarders, 140 Maiden Lane, New York, N. Y. Crulkshank, Harrison, 2023 Delaware Ave., Wilmington, Del. Cruse, L. C, U. S. Shipping Board, Washington, D. C. Culbertson, W. S., Commissioner, U. S. Tariff Commission, Washington, D. C. Cullinan, J. S., 1409 Carter Bldg., Houston, Texas. Culver, W. B., Federal Trade Commission, Washington, D. C. Cunha, Leopoldino, Special Mission from State of Sao Paulo, Brazilian Embassy, Washington, D. C. Cunningham, Thomas F., Vice President, New Orleans Board of Trade, New Orleans, La. Curry, William E., Vanderbilt Hbtel, New York, N. Y. Curtiss, Frederic H., Chairman Federal Reserve Bank, S3 State St., Boston, Mass. Cushwa, O. H., Claude M. Smith & Co., Inc., 149 Broadway, New York, N. Y. Cutler, Dr. Burwell S., Chief, Bureau of Foreign and Domestic Commerce, Department of Commerce, Washington, D. C. Dalmas, Miss Sophie, 1126 12th St., N. W., Washington, D. C. Dalrymple, Alfred V., Capt. U. S. A., Military Information Division, "A" Bldg., Wing F, 7th & B Sts, Washington, D. C. Dana, John Cotton, Librarian, Public Library, Newark, N. J. Daniels, Lorenzo, Busk & Daniels, 8 Broadway, New York, N. Y. Dargin, H. H., F. W. D. Auto Co., Washington, D. C. Darville, Edward H., Editor "Hardware "Age," 231-243 W. 39th St., New York, N. Y. Daugherty, Silas D., Lecturer on Latin America, 1511 Arch St., Philadelphia, Pa. David, Evan J., Business Manager, "Flying," 280 Madison Ave., New York, N. Y. Davidson, I. Ne^wton, Office of Alien Property Custodian, Washington, D. C. Davies, W. W., Representative of "La Nacion" of Buenos Aires, 51 Chambers St., New York, N. Y. Davis, A. L., South American Land and Develop- ment Co., Louisville, Ky. Davis, Governor, D. W., Governor of Idaho, Boise, Idaho. Davis, Major Harry, Room 135, State, War and Navy Building, Washington, D. C. Davis, O. K., National Foreign Trade Council. India House, New York, N. Y. Dawley, Jr., Thomas R., Writer and Publicist, 1320 New York Ave., N. W., Washington, D. C. APPENDIX 427 Dean, Chas. Ray, Lawyer, 806 Colorado Building, Washington, D. C. Dearing, Fred Morris, American International Corp., 120 Broadway, New York City. De La Garza, Jr., Emeterio, Lawyer, 42 Broadway, New York, N. Y. Deichman, C, F., Consular Bureau, State Department, Washington, D. C. Delgado, D. E., Manager Foreign Department, East- man Kodak Co., Rochester, N. Y. Del Gallego, R., Factory Products Corp., 2 Rector St., New York City. Delmarle, O. J., Dried Fruit Export, Rep. O. J. Del- marle & Co., Granite Bldg., Rochester, N. Y. Demarest, H. S., Steam Packings, Greene, Tweed & Company, 109 Duane St., New York, N. Y. de Marval, J. A., Obligado & Co., B. Mitre, 343, Buenos Aires, Argentina. Derby, John W., Manning, Maxwell & Moore, 119 W. 40th St., New York, N. Y. Derrom, D. L., Engineer, Trading Engineers, Inc., 1641 Edison Bldg., Chicago, 111. Desvernine, Eduardo L., Cuban Consul, Baltimore, Md. DeTurk, J. A., 600 Schuylkill Ave., Reading, Pa. DeWolf, Richard C, Lawyer, 1419 G St., N. W., Washington, D. C. de Ycaza, Gustavo R., Consul General of Ecuador, New York, N. Y. Dezendorf, Jr., Frederick C, 1430 Meridian St., N. W., Washington, D. C. Diamant, Arthur H., Chief Engineer, C. K. Thomas & Co., Consulting Engineers, 10 Bridge Street, New York City. Diaz, R. Camllo, Charge d'Affaires of Honduras, The Northumberland, Washington, D. C. Diaz, Irlzar, Dr. Mario, International Trade Mark Bureau, Trocadero SS, Havana, Cuba. Dickinson, Charles, Representing West Virginia, Charleston, W. Va. Dickinson, W. N., 38 De Koven Court, Brooklyn, N. Y. Dickson, George R., Expert, Council of National De- fense, Washington, D. C. Digan, T. J., Assistant Credit Manager, United States Steel Products Co., 30 Church St., New York City. Dial, Hon. N. B., Senator from South Carolina, Rep- resenting the State, Washington, D. C. Disston, S. Horace, Manufacturers Saws and Tools, Henry Disston & Sons, Philadelphia, Pa. Dixon, George Dallas, Vice President, Penna. R. R. Co., Broad St. Station, Philadelphia, Pa. D'Ober, William L., General New York Manager, U. S. Cuban Allied Works Eng. Corp., SO Broad St., New York, N. Y. Dodge, James S., Automatic Fire Prevention, 123 William St., New York, N. Y. Dodge, Martin, Commissioner Public Roads, Washington, D. C. Domeratzky, L., Chief, Division of Foreign Tariffs, Bureau of Foreign and Domestic Commerce. Department of Commerce, Washington, D. C. Dominici, Dr. Santos A., E. E. and M. P. of Venezuela, 1406 Mass. Ave., Washington, D. C. Donaldson, John L., War Trade Board, Washington, D. C. Doonan, Geo. W., Foreign Trade Adviser, Central Trust Co. of 111., 125 W. Monroe St., Chicago, 111. Doran, Mrs. M. A. Ringold Apts., Muncie, Ind. Doran, Miss L. M., American Red Cross, Motor Corps, Muncie, Ind. Doty, Harry L., Veneer Manufacturers, J. J. Nartzik, 1966 Maud Ave., Chicago, 111. Douglas, Charles S., Southern Bldg., Washington, D. C. Douty, F. A., Portland Chamber of Commerce, Portland, Oregon. 428 SECOND PAN AMERICAN COMMERCIAL CONFERENCE Dow, Fayette B., Natl. Petroleum Assn., Munsey Bldg., Washington, D. C. Downing, Dr. Augustus, Asst. Coram, for Professional Edu- cation, The Univ. of the State of N. Y., Albany, N. Y. Doyle, Michael Francis, Lawyer, General Counsel Delaware River Atlantic Coast, Great Lakes and Gulf Shipbuilders Counsel, 1325 Land Title Bldg., Philadelphia, Pa. Drake, 'E. A., Vice President, Panama R. R. Co., 24 State St., New York City. Dublin, Louis I., Statistician, Metropolitan Life In- surance Co., 1 Madison Ave., New York, N. Y. Dudley, Mrs. C. F^, 3580 13th St., N. W., Washington, D. C. Dufour, Col. Wm. C, Whitney Building, New Orleans, La. D, President Hanlon Drydock and Ship Bldg. Co., Rep. Oakland Chamber of Commerce, Oakland, Cal. Hanlon, J. L., Manager, The Deselektro Co., Evans Bldg., Washington, D. C. Hansard, S. J., School Foreign Science, Georgetown University, Washington, D. C. Hanna, Rea, Export Manager, Gaston Williams & Wigmore, 63 Broadway, New York City. Hansen, George W,. Manufacturer of Sadlery, 131 Market St., Philadelphia, Pa. Hardenbergh, W. P., Jr., Manager of Export Sales The New Jersey Zinc Co., 160 Front St., New York City. Harding, Frederick C, Sub-Agent, Anglo South American Bank, Ltd., 49 Broadway, New York City. Harding, H. McL., Consulting Engineer, New York City. Harper, R. N., President Washington Chamber of Commerce, Washington, D. C. Harrington, Chas., New Orleans Steamship Association, New Orleans, La. Harrington, E. B., Asst. Mgr., Transit Dept., Hibernia Bank and Trust Co., New Orleans, La. Harris, D. C, Manager Import Dept. C. C. Mengel & Bro. Co., 5th and G Sts., Louisville, Ky. Harriss, Magill & Co., Steamship Agents, Export, Import, Room 437, SO Broad St., New York City. APPENDIX 433 Hastings, Hon. W. W., Representative State of Oklahoma, Washington, D. C. Hatch, H. Q. C, N. Y. Mgr., Caldwell-Burnet Corp., 101 Park Ave., New York City. Hauss, Charles F*., Vice-President, Mediterranean Trading Co., Inc., 29 Broadway, New York City. Havens, Verne .Leroy, Editor, International Engineering, McGraw-Hill Co., 10th Ave. and 36th St., New York City. Hawkins, A. S., Manager of Export Department, Graham Paper Co., 1014-30 Spruce St., St. Louis, Mo. Hawkinson, Lloyd Francis, Georgetown College, Washington, D. C. Haynes, Harry V., Washington Board of Trade, Farmers and Mechanics National Bank, Washington, D. C. Hederich, Frartk, Professor of Modern Languages, Teachers' College, Columbia Uni- versity, 448 Central Park, West, New York City. Hedges, Will T., Pyrex Division, Corning Glass Works, Corning, N. Y. Heegstra, H. Walton, H. Walton Heegstra Inc., Merchan- dising- Advertising, 19 S. La Salle St., Chicago, III. Heinz, Edward N., Asst. Cashier and Manager Foreign Dept., Fort Dearborn National Bank, 76 W. Monroe St., Chicago, 111. Hely-Hutchinson, Maurice, Vice-President and General Mana- ger, Foreign Bond and Share Cor- poration, 54 Wall Street, New York City. Heminway, M. L., Motor and Accessory Manufacturers Association, New York,* N. Y. Henderson, Hon. Charles B., U. S. Senator, Representing State of Nevada, Washington, D. C. Henry, Frank Anderson, Department of State, Washington, D. C. Henry, Louis, Allied Export Association, Aeolian Hall, New York, N. Y. Henry, Philip W., American International Corporation, New York, N. Y. Henry, S. T., Vice-President, Allied Machinery Co. of America, 51 Chambers St., New York City. Hepburn, George H., Tungsten Ores, Representing George Wilson, Oruro, Bolivia, 1020 Drexel Bldg., Phila., Pa. Hepburn, Robert Hopewell, 921 S. 48th St, Phila., Pa. Hernandez, Nicolas, Havana, Cuba. Hewett, Edgar L., Director, School of American Re- search, Santa Fe, N. Mex. Hewitt, R. J., All America Cables, 1222 Conn. Ave., Wash., D. C. Hickernell, Warren Fayette, Alexander Hamilton Institute, New York, N. Y. HildKth, Chas. E., National Machine Tool Builders' Association, Worcester, Mass. Hill, Edmund C, Real Estate, Edmund C. Hill & Co., 7 W. State St., Trenton, N. J. Hill, John Wesley, Chancellor, Lincoln Memorial Uni- versity, 30 E. 42nd St., New York, N. Y. Hilles, Raymond W., Manager of Sales and Credits, Dex- ter Portland Cement Co., 103 Park Ave., New York City. Hirtler, Henry, Representative in U. S., G. Artadi & Co., Paita-Piura-Callao, Peru, 120 Liberty St., New York City. Hochschild, Harold K., American Metal Co., Ltd., 61 Broadway, ' New York City. Hodge, Miss Katherine P. Bureau of Research, War Trade Board, Washington, D. C. Hoffmaii, Frederick L., Prudential Insurance Company, Newark, N. J. Hoit, Richard B., Miami, Fla. 434 SECOND PAN AMERICAN COMMERCIAL CONFERENCE Holdsworth, Dr. J. T., Vice President, The Bank of Pitts- burgh N. A., Pittsburgh, Pa. Holdt, A. E., Atlas Commerce Corporation, S42 Fifth Ave., New York City. Hollick, Claud, Cristobal, Canal. Zone. Holloway, 'Edwin L., Office of Asst. to Secretary of War, Washington, D. C. Holman, Frederick V., Lawyer, Portland, Oregon. IHolt, Clarence J., 533 Market St., Wheeling, W. Va. Hopkins, Randolph D., Hopkins Syndicate, Washington, D. C. IHopkins, Mrs. Randolph D., Buffalo (N. Y.) Courier, Washington, D. C. (Houston, Herbert S., Doubleday, Page & Co., 120 W. 32nd St., New York City. Howard, A. B., Rep. Chamber of Commerce of U. S. in Argentina, 562 Bartolome Mitre, Buenos Aires, Argentina. Howard, Hon. 'E. B., Representative State of Oklahoma, Washington, D. C. Howard, H. M., Wilson & Co., 4100 Ashland Ave., Chicago, 111. Howell, C. F., U. S. Shipping Board, Washington, D. C. Howland, Daniel W., Portalis Co., Buenos Aires, 25 Broad St., New York, N. Y. Hoyos, Sr. Alberto De, Constitutional Railways of Mexico, Woolworth Bldg., New York City. Hoyos, F. P. de, General Agent, National Railways of Mexico, 233 Broadway, New York, N. Y. Hudson, Paiul, Editor and Publisher, "Mexican Herald," The Shoreham, Washington, D. C. Huger, E. IV1., New Orleans Stock Exchange, New Orleans, La. Hume, Frederic W., McGraw-Hill Co., Inc., New York. N. Y. H'unsberger, H. W., General Motors Export Co., 1764 Broadway, New York City. Hunter, W. E., Economy Tumbler Co., Morgantown, W. Va. Hurley, Hon. Edw. N., Chairman, U. S. Shipping Board, Washington, D. C. Hurray, Charles DuBois, General Secretary, Committee on Friendly Relations Among For- eign Students, 347 Madison Ave., New York City. Hutchinson, Edwin T. H., Export Rep., Automotive Accesso- ries, The Silvex Company, South Bethlehem, Pa. Ibanez, Arsacic, Export and Import, Bruna, Sampaio & Co., of Valparaiso, Chile, 170 Broadway, New York City. Ingalls, W. W., Association of Commerce of New Orleans, New Orleans, La.. Ipanema IVIoreira, Alberto de, Charge d'Affaires of Brazil, Wardman Park Inn, Washington, D. C. Jackson, A. T., Vice-President, -Emerson Branting- ham Co., Rockford, III. James, E. W., General Inspector, Bureau of Public Roads, U. S. Department of Agri- culture, Washington, D. C. Janer, R> I., International Planters Corporation of New York and G. O. Truck Co., New York, N. Y. Jasper, D. W., The Bonnot Co., Canton, Ohio. Jaxon, Major Honore J., Publicist and Writer ; Secy. Metio or French-Indian Council, Commis- sioner Metio Fur Hunters Cooper- .ative Association, 1751 W. Lake St., Chicago, III. Jeffrey, Macolm D., Manager Export Department, The Jeffrey Mfg. Co., Columbus, Ohio. Jelleff, Frank R., Frank R. Jelleff, Inc., Washington, D. C. APPENDIX 43S Jenks, Jeremiah W., Publicist, Alexander Hamilton Insti- tute, 13 Astor Place, New York City. Jennings, W. B., Worthington Pump and Machinery Corporation, 25 Deerfield Ave., Buffalo, N. Y. Jewett,> J. IVI., International Western Electric Co., 195 Broadway, New York City. Johnson, D. B., President Winthrop Electric College, Oakland Ave., Rock Hill, S. C. Johnson, IHallet, Acting Chief, Latin American Divi- sion, Department of State, Washington, D. C. Johnson, Howard W., Georgetown University, Washington, D. C. Johnson, Ralph B., Export Manager, The Sharpless Separator Co., West Chester, Pa. Johnson, Reeves K., Foreign Sales Manager, The Bald- win Locomotive Works, 500 North Broad St., Philadelphia, Pa. Johnson, S. IVI., Representative of the State of New Mexico, Glencoe, New Mexico. Johnson, Walter A., Managing Director, The Advanced Agricultural Publishing Co., 2 W. 4Sth St., New York City. Johnson, W. W., President, Union Construction Co., Shipbuilders, Oakland, Cal. Johnston, Franklin, Publisher, American Exporter, 17 Battery Place, New York City. Jones, Hon. B. B., Representing State of Oklahoma, 2145 Wyoming Ave, Washington, D. C. Jones, Calvin A., Foreign Sales, American La France Fire Engine Co., New York, N. Y. Jones, Frank H., Vice-Pres. Worthington Pump & Machinery Corp., 115 Broadway, New York City. Jones, M. Grosvenor, Asst. Director, Bureau of For- eign and Domestic Commerce, Department of Commerce, Washington, D. C. Joubert, Frank C, South Atlantic Maritime Corpor- ation, Washington, D. C. Judd, Ernest N., Export Division, Federal Trade Commission, Washington, D. C. Karmi.nski, Victor E., Victor E. Karminski & Co., Inc., (Nagle Steel Co. of Pottstown, Pennsylvania), New York, N. Y. Kavanaugh, Thomas J., Mississippi Valley Trust Co., St. Louis, Mo. Keeley, Miss 'Edith, National Board of the Y. W. C. A., 600 Lexington Ave., New York, N. Y. Keith, John M., Costa Rica Chamber of Com. San Jose, Costa Rica. Kelly, James F., Inter. Mountain Press Service, Washington, D. C. Kelly, N. B., Gen. Secy., Phila. Cham, of Com., 1236 Widener Building, Philadelphia, Pa. Kendall, Nathan, Mining and Agriculture, 341 E. First St., Tucson, Ariz. Kendrick, E. A., Printer, Redfield-Kendrick-Odell Co., 311 West 43d St., New York, N. Y. Kent, Fred I., Vice-Pres. bankers Trust Co., 16 Wall St., New York, N. Y. Kettner, Hon. William, Representing Eleventh California District, San Diego, Cal. Kilbourne, J. R., The Kilbourne & Jacobs Mfg. Co., Columbus, Ohio. Kissel, Ludwig, Manager of La Suisse Import and Export Company, 156 Fifth Ave., New York N. Y. Kizer, E. D., Special Assistant, Department of State, Y. ,M. C. A., Washington, D. C. Klein, Edward C, Jr., Georgetown University, Washington, D. C. Kleinfelder, H'enry C, Sales Engineer, F. M. Ferrin, 3 Park St., Boston, Mass. 436 SECOND PAN AMERICAN COMMERCIAL CONFERENCE KMapp, H. F., U. S. Steel Products Co., Washington, D. C. Kneessi, W. W., Great Lakes Trust Co., Chicago, III. Kobbe, William H., Petroleum Engineer, Major, Engineers, U. S. A. Knowles, D. G., Culbertson, Nebr. Koster, Frederic J., San Francisco, Cal. Kreitz, George H., _ Vice President, The National Bank of New York, 241 Broadway, New York City. Kretz, Walter C, Engineer and Foreign Traveler, John A. Roebling's Sons Co., 117 Liberty St., New York City. Krout, Dr. A. B., ' U. S. Shipping Board, Washington, D. C. Krueso, Paul J., Chattanooga, Tenn. Kiunz, Dr. Geo. F., 3d Vice Pres., Tiffany & Co., New York. N. Y. Lacalle, Julian Moreno, Recording Secretary of the Confer- ence, Asst. Professor of Spanish, U. S. Naval Academy, Annapolis, Md. Lacayo, Dr. Virgilo, Consul General of Nicaragua, Government of Nicaragua, C. A., Room 516. La Garza, Jr., Emeterio de, Lawyer, 42 Broadway, New York, N. Y. Laittre, Karl de Director, Bureau of Research and Statistics, War Trade Board, 924 Plymouth Building, Minneapolis, Minn. Lamberton, E. 'E., N. O. S. S. Association, Southern Pacific Steamship Lines, New Orleans, La. Lamson, Charles A., Latin American Trade Expert, Divi- sion of Operation, U. S. Shipping Board, Washington, D. C. Lane, Roland G., ' The Bridgeport Coacli Lace Co., Bridgeport, Conn. Lang, Charles F., Pres., Lakewood Engineering Co., Berea Road. Cleveland Ohio- Langdon, C. S., Pres. of the Minneapolis Civic and Commercial Assn., Rep. of the State of Minnesota, Minneapolis, Minn. Langgaard, de Menezes, Theodore, Commercial Secretary to the Bra- zilian Embassy, 74 Wall St., New York, N. Y. Langlais, Claude O. P., Chamber of Commerce of Lille, France. Lara Pardo, Dr. L.,. Criterion Newspaper Syndicate, New York, N. Y. Larsen, John, President, Bech, Van Siclen & Co., Inc., 45 E. 17th St., New York, N. Y. Lasnier, 8r. Don Gilberto, Care Consul General of Uruguay, New York, N. Y. Lawrence, M. L., Springfield, Vt. Lawton, Lewis H., , Sec. and Genl. Mgr., Jonathan Bart- ley Crucible Co., Oxford St., Trenton, N. J. Lay, Julius G., Foreign Trade Adviser, Department of State, Washington, D. C. LeBourgeois, J. C, American Cane Growers' Assn., New Orleans, La. Leek, W. H., C. F. Sauer Co., Richmond, Va. Lee, Carlos, Care Chilean Embassy, Washington, D. C. Lee, Charles Henry, Manager Morrison & Co. (of Chile, S. A.), 11 Broadway, New York, N. Y. Leese, M. A., Merchant, Merchants and Manufac- turers Association, 614 9th St., N. W., Washington, D. C. Le Fevre, B. A., 200 Southern Bldg., Washington, D. C. Lefevre; Sr., Don J. E., Charge d'Affaires of Panama, 240O Sixteenth St., Washington, D. C. Leonard, Edward F., Georgetown University, Washington, D. C. Lesser, M. A., Georgetown University, Washington, D. C. APPENDIX 437 Levin, Nathan, "El Nacional," Habana, Cuba, 1512 Corcoran St., N. W., Washington, D. C. Lewis, E. M., Acting President Mass. Agricultural College, Amherst, Mass. Lewis, Jose G., Georgetown University, Washington, D. C. Lewis, M. H., Executive, Santa Cecilia. Sugar Cor- porations, 44 Whitehall St., New York, N. Y. Lewis, W. Reginald, Cashier, Northeast Savings Bank, Washington, D. C. L'Hommedieu, Monsieur H. S., Traffic Manager, Orange Chamber of Commerce, Orange, Texas. Linard, Drew, Assistant Foreign Trade Adviser, State Dept., Washington, D. C. Lindeman, A. J., President, A. J. Lindeman & Hover- son Co., 421 Cleveland Ave., Milwaukee, Wis. Linden, William E., 222 13th St., N. E., Washington, D. C. Lindstrom, A. S., Mfg. Agency, 711 13th St., N. W., Washington, D. C. Lipman, Lewis H., Export Manager, Enoch Morgan's Sons Co., 439 West St., New York, N. Y. Livingston, Colin H., President, Virginia Shipbuilding Corporation, and Washington and Old Dominion Railway, 1320 F Street, N. W., Washington, D. C. Llewellyn, Reese, Los Angeles Chamber of Com., Los Angeles, Cal. Lobanoff, Robert M., Second Ward Savings Bank, 263 Farwell Ave., Milwaukee, Wis. Loly, G. M., R. W. GreefiE & Co., New York, N. Y. Long, Boaz, American E. E. and M. P. to Cuba, Department of State, Washington, D. C. Long; Breckenridge, Third Asst. Secry. of State, Dept. of State, Washington, D. C. Loomis, Dale B., Georgetown University, Foreign Service School, Washington, D. C. Loomis, F. B., Metropolitan Club, Washington, D. C. Lounsbery, Judson, The American Sugar Refining Co., New York, N. Y. Lowe, Theo., Editor, Latin American Dept. of the New York Sun, 280 Broadway, New York, N. Y. Lucas, 'Emerson, Foreign Com. Serv. Southern Ry., Washington, D. C. Luitwelier, J. C, American International Corpora., Brooklyn, N. Y., Lukes, Geo. H., 72 West Adams Street,^ Chicago, 111. Luna y Para, P., Mexican Lawyer, Legal Dept., Texas Co., 17 Battery Place, New York, N. Y. Lund, V. B., Claude M. Smith & Co., Inc., 149 Broadway, New York, N> Y. Luque, C. I., Commercial Agent, Mexican Dept. of Commerce, Industry and Labor, St. Louis, Mo. Lustig, A. A., Zionist Bureau, Y. M. H. A. Building, Washington, D. C. Lyons, Henry S., Secy, of New England Fuel and Trans. Co., New England Coal and Trans. Co., New England Coal and Coke Co., Ill Devonshire Street, Boston, Mass. McCarteney, Summerfield, 929 S. 20th Street, Birmingham, Ala. McCarthy, Daniel J., Georgetown University, Washington, D. C. McClellan, Wm., Dean of Wharton School, Uni- versity of Pennsylvania, 1628 Real Estate Trust Bldg., Philadelphia, Pa. McClintIc, Hon. Jim, Represent., State of Oklahoma, Washington, D. C. 438 SECOND PAN AMERICAN COMMERCIAL CONFERENCE McClintock, Samuel Fed. Agent for For. Trade Edu., 200 New Jersey Ave., N. W., Washington, D. C. McColJough, M. L. (Capt)., U. S. A., Air Service, Washington, D. C. McCrann, Geo. A., Wathen Milling Company, 104 W. Main Street, Louisville, Ky. McCullough, E. W., Business Asso., National Imple- ment and Vehicle Association, 72 W. Adams St., Chicago 111. McDonnell, J. B., Daily News Record, 507 Union Trust Building, Washington, D. C. McDuffie, John, . Mobile, Ala. McGee, John Edward, Manager Map Department, Gen- eral Drafting Co., Inc., 9 Church St. New York, N. Y. McGibbons, John H., " 134 S. La Salle St., Chicago, 111. McGoodwin, Hon. Preston, American Minister to Venezuela, • Caracas, Venezuela. McGowan, Miss Marguerite, Council of National Defense, Washington, D. C. McGraw, James H., Publisher, McGraw-Hill Co., Inc., New York, N. Y. McGuire, Constantine E., Assistant Secretary General, U. S. Sec, Inter. High Commission, Treasury Building, Washington, D. C. McHale, C. F., Education Department, National City Bank, New York, N. Y. McKeown, M. C, Hon. Tom D,. State of Oklahoma, Washington, D. C. McLanahan, Austin, Alex. Brown & Sons — President of Export and Import Board of Trade of Baltimore, Baltimore, Md. McLean, H. G., Foreign Commerce Service, Southern Railroad, Washington, D. C. McLeod, George E., Captain, U. S. A., Washington, D. C. McQueen, Charles A., Chief, Latin American Division, Bureau of Foreign and Domes- tic Commerce, Department of Commerce, Washington, D. C. McReynolds, C. I., Assistant Manager Foreign De- partment, General Motors Accept. Corp., 1764 Broadway, New York, N. Y. Macedo Sodre, Retiato de, Attache, Brazilian Embassy, .. .T. « o Washington, D. C, MacElwee, R. S., Assistant Director, Bureau of Foreign and Domestic Com., Department of Commerce, Washington, D. C. MacKenzie, H. Bentley, Georgetown University, School of Foreign Service, Washington, D. C. MacKinlay, Miss Jessie, 600 Lexington Avenue, New York, N. Y. Mackle, A. W., Manager Mississippi River Section, Mississippi Warrior Waterways, U. S. Railroad Administration, St. Louis, Mo. Maconachy, James G., Insurance, Niagara Fire Ins. Co., 123 William St., New York, N. Y. Magid, Louis B., Pres., Warehousemen, Appalachian Corporation, Inc., of Louisiana, New Orleans, La.- Magrud'er, Miss Mary, George Washington University, Washington, D. C. Mahoney, Wm. H., The Merchants Assn. of New York, New York, N. Y. Maldonado, Fernando B., Import and Export with Spanish Republics, 37 California St., San Francisco, Cal. Mandujano, Graciela (Miss), Acting Editor, Pan American Maga- zine, 70. Fifth Ave., New York, N. Y. Mann, C. A., Salvage Syndicates, Inc., Room 1218, • Lytton Building, 14 E. Jackson Blvd., Chicago, 111, Manning, Wm. R., Foreign Trade Adviser's Office, Washington, D. C. 439 Manning, W. R. Economist for Latin America, State Dept., Washington, D. C. Marcal, J., Steamship, Lloyd Brasileiro, 44 Whitehall St., New York, N. Y. Marchant, Langworthy, Portuguese Translator, Pan Ameri- can Union, Washington, D. C. Marshall, Stuart B., Consulting Engr. and Metallurgist, Chevy Chase, D. C. Marshall, Hons Thomas R., The Vice President of the United States, Washington, D. C. Martin, C. C, National Paper and Type Co., 32 Burling Slip, New York, N. Y. Martin, Jr., Mahlon C, Production Crude Petroleum, Glen Ridge, N. J. Martin, John F., Jr., Diplomatic Secretary, Dept. of State, Washington, D. C. Martin, Walter F., Col. General Staff, U. S. Army, 7th and B Sts., N. W., Washington, D. C. Martin, William M., Chamber of Commerce, Petersburg, Va. Martinez, D. R., Exporter and Trade Adviser, Lester Piano Co., Bennett White, Inc., and others, 617 Fifth Ave., New York, N. Y. Marum, Hon. D. P., Representing Oklahoma, Woodward, Okla. Marval, J. A., de, Obligado & Co., B. Mitre 343, Buenos Aires, Argentina. Mason, Miss C. E., Pan American Round Table, Tarrytown-on-Hudson, N. Y. Mason, J. W., Pres., Western Pipe & Steel Co., San Francisco, Cal. Mason, Jarvis W., Vice Pres., Am. Surety Co. of N. Y., 100 Broadway, New York, N. Y. Mate, Luis A., Consul of Ecuador, 5804 Florence Ave., Philadelphia, Pa. Mathieu, Sr., Don Beltran, Ambassador E. and P; of Chile, 1020 Sixteenth St., Washington, D. C. May, Robert H., McGraw-Hill Book Co., 611 Colorado Building, Washington, D. C. May, Theodore, Representing Liberty Export and Import Corp., Trans-Ocean Fi- nance Corporation, 63 Wall St., New York, N. Y. Meeks, B. S., 122 W. Evans St., Florence, S. C. Menoher, Maj. Gen. Chas T., Director of Military Aeronautics, U. S. A. War Dept., Washington, D. C. Merrick, Harry H., President, The Chicago Association of Commerce, 10 S. La Salle St., Chicago, 111. Merrill, Henry P., General Products, Shipping and Trading Corporation, Washington, D. C. Merrill, John L., Pres., Central and South American Telegraph Company (All Ameri- ca Cables), 66 Broadway, New York, N. Y. Messer, Peter, Secretary Wm. Messer Co., Expor- ter Metals and Metal Products, 27 Suffolk St., New York, N. Y. Meyer, Alfred, Mercantile Bank of the Americas, New York, N. Y. Meyer, H. H., Manager Paper Dept., National Paper and Type Co., 32 Burling Slip, New York, N. Y. Michaels, U. O., Insurance Co. of North America, Richmond, Va. Care Shoreham, Washington, D. C. MIchler, Margaret W., Davis Hosiery Mills, Fort Payne, Ala. Middleton, Arthur, Patent Lawyer, 217 Broadway, New York, N. Y. Milliken, Governor Carl E., Governor of Maine, Augusta, Maine. Milne, Henry Utiey, Standard Daily Trade Service, New York, N. Y. Miranda, A. In care of The J. L. Mott Iron Works. New York, N. Y. Mitchell, Frank J. R., Mercantile Bank of the Americas, New York, N. Y. 440 SECOND PAN AMERICAN Mitchell, S. A., ^ Sec, The Irwin Auger Bit Co., Wilmington, Ohio. Moffit, Lieut. J. P., Quartermaster Corps, U. S. A., Washington, D. C. Moffit, James P. (Lieut. U. S. A.), 140 Nassau St., New York, N. Y. Moll, Aristides A., Spanish Editor (Spanish Edition "Journal A. M. A."), American Medical Association, Chicago, 111. Montenegro, Ernesto, Representative of "El Mercurio," Santiago, Chile. Montenyohl, Mrs. C, Highway Industrial Assn., 410 McKim Building, Washington, D. C. Montgomery, W. P., Spanish-English Translator, Pan American Union, Washington, D. C. Moody, H. R. (Capt. U. S. A.), Packing Division — War Department, Washington, D. C. Moore, A. V., President, Moore & McCormick Co., Inc., Steamship Agents, 5 Broadway, New York, N. Y. Moore, Paul, , Director, Division of Information — War Trade Board, Washington, D. C. Moos, L. S., Pres., American Machinery Syndi- cate, Inc., 16-18 West 39th St., New York, N. Y. Moravia, Mons. Charles, E. E. and M. P. of Haiti, 1429 Rhode Island Ave., Washington, D. C. Moreland, Watt L., President, Los Angeles Chamber of Commerce, Los Angeles, Cal. Morgan, Hon. Dick T., Representative, State of Oklahoma, Washington, D. C. Morgan, Frank P., Factory Products Corporation, Washington, D. C. Morgan, Gilbert E., Attorney at Law, 802 Engrs. Bldg., Cleveland, Ohio. Morris, Geo. P. 612 Colorado Bldg., Washington, D. C. COMMERCIAL CONFERENCE Morrison, Horace S., Philadelphia Commercial Museum, 34th, below Spruce St., Philadelphia, Pa. Morrow, James Barney, Manager of Foreign Trade Depart- ment, Chamber of Commerce, Cincinnati, Ohio. Morse, Henry H., Regal Shoe Company, Boston, Mass. Motley, James M., Exporter, 71 Beaver St., New York, N. Y. Muchnic, Charles M., * Vice President, American Locomo- tive Sales Corp., 30 Church St., New York, N. -Y. Muir, J. Malcolm, Vice Pres., McGraw-Hill Co., Inc., 10th Ave. at 36th St., New York, N. Y. Muniz, Luis G., Foreign Dept., Frank Seaman, Inc., New York, N. Y. Munro, Dana G., Economist for Mexico and Central America, State Dept., Washington, D. C. Munson, Charles S., Treasurer, Cuban American Reduc- tion Corp., 16S Broadway, New York, N. Y. Munson, Frank C, Munson Steamship Co., 82 Beaver St., New York, N. Y. Murphey, C. A., New York Sales Manager, Pratt Engineering and Machine Co. 25 West 44th St., New York, N. Y. Murphey, Miss Elizabeth, War Trade Board, Washington, D. C. M'urray, Robert Hammond, Mexico, D. F., (New York Address, The City Club, W. 44th St., New York, N. Y.). M usher, N., President, Musher & Co., Importers Olive Oil, Continental Trust Bldg., Washington, D. C. Myers, William S., Chilean Legation, New York, N. Y. Myier, J. A., Asst. Mgr., Foreign Dept., H. W. Johns-Manville Co., 41st St. and Madison Ave., New York. N. Y. Nagel, C. W., H. W. Johns-Manville Co., 1737 S. Michigan Ave., Chicago, 111. Nally, Edward J., President, Pan American Wireless Telegraph and Telephone Co., 233 Broadway, New York, N. Y. Nellis, J. C, Secretary, Manager National Ejner- gency Bureau of the Wooden Box Industry, 15S3 Conway Bldg., Chicago, III. New, Hon. Harry S., Senator from Indiana, Washington, D. C. Newbold, Mrs. R. M., Burlington Hotel, Washington, D. C. Newbold, R. M., Washington Rep., The Four Wheel Drive Auto Co., 601-A Southern Bldg., Washington, D. C. NeWkirK, Jr., John L., Rep. State of Tennessee, Genl. Mgr., Tennessee Manufacturers Assn., U. S. A. Corporation, Chattanooga, Tenn. Newman, Dr. H. P., San Diego Chamber of Commerce, San Diego, Calif. Newton, Hon. James T., U. S. Commissioner of Patents, Washington, D. C. Newton, Robert M., Georgetown University, Washington, D. C. NIckerson, J. F., Publisher, Nickerson Collins Co., and American Association of Re- frigeration, 431 S. Dearborn St., Chicago, III. Nickles, Robert IE., Representing South Carolina, 1116 Vermont Ave., Washington, D. C. Nieto del Rio, Felix, Chilean Consulate General, New York, N. Y. Nobbe, Paul, Vice Pres. and Sales Mgr., Ameri- can Aniline Products, Inc., New York, N. Y. Noel, John Vavasour, (First Assistant and Secretary for the Conference) President, Noel News Service, New York, N. Y. Norokauer, Maurice J. (C. S. C.) Student, Notre Dame University, Holy Cross College, Brookland, D. C. >;dix 441 Nordman, J. J., J. J. Nordman & Co., Purchasers for Foreign Account, Farmers Bank Bldg., Pittsburgh, Pa. Northridge, F. Wesley, Jr., Assistant Export Manager, National Aniline and Chemical Co., Inc., 21-27 Burling Slip, New York, N. Y. Notz, William, Export Trade Division, Federal Trade Commission, Washington, D. C. Noyes, F. B., President Associated Press, Washington, D. C. Nye, L. Bert Mgr., Washington Branch, Ameri- can Surety Co. of New York, Washington, D. C. O'Brien, Douglas F., Morris & Co., Chicago, 111. O'Brien, William J., Manager, All America Cables, 1126 Connecticut Ave., N. W., - Washington, D. C. O'Donnell, J. Hugh, Student, Notre Dame University, Holy Cross College, Brookland, D. C. O'Donnell, John J., All America Cables, New York, N. Y. O'Donnell, L. A., Manufacturer, "Gary" Trucks, The Gary Motor Truck Co., 9th Ave. and Taft St., Gary, Ind. O'Neill, Gonzalo, Manager, Johnson & Johnson, New Brunswick, N. J. O'Neill, O. D., Export Business, Atlas Commerce Corporation, 542 Fifth Ave., New York, N. Y. O'Neill, Stephen, Georgetown University, Washington, D. C. O'Shanahan, A. Reg, Uruguayan Consul General in Bel- gium, Uruguayan Legation, Washington, D. C. Offutt, H. L., Jr., Washington Chamber of Commerce, District National Bank, JVashington, D. C. Ohsol, J. G., Federal Trade Commission, Washington, D. C. 444 SECOND PAN AMERICAN COMMERCIAL CONFERENCE Prigge, J. A., Jr., Chocolates and Confectionery, The E. W. Dunstan Co., 112 Hudson St., New York, N. Y. Prince, John S., Pan American Society of the Unites States, IS Broad St., New York, N. Y. Protsman, W. R., Vevay, Indiana. Prouty, N. H., Director, International Commerce Service, International Corre- spondence School, Cor. Wyoming Ave. and Ash St. , Scranton, Pa. Purdie, Francis B., In care of R. G. Dun & Co., Commercial Agency, Albany, N. Y. Putnam, J. B., Representative, National Bank of Commerce in New York, 31 Nassau Street, New York, N. Y. Quintana, Mr. Federico IVI., Minister and Charge d' Affaires of Argentina, 1806 Corcoran St., Washington, D. C. duintero, B. de, Pres., Spanish-American School of Language, Philadelphia, Pa. Randall, C. B., 'Publisher, 254 W. Grant Ave., New Castle, Pa. Raymond, Miss 'Elizabeth J., 1822 H Street, N. W., Washington, D. C. Rea, Allan R., Manager, Foreign Dept., Fair- banks, Morse & Co., ' 30 Church Street, New York, N. Y. Reachy, Santiago B., Foreign Trade Director, Interna- tional Correspondence School, Scranton, Pa. Read, H., Manufacturer, "Read Mchy. Co." York. Pa. Redfield, Hon. William C, Secretary of Commerce, Department of Commerce, Washington, D. C. Reese, Llewellyn, Chamber of Commerce of Los Angeles, Los Angeles, Cal. Reichard, Carlos B., School of Foreign Service, Georgetown University, Washington, D. C. Reid, B. Meredith, Georgetown University, Washington, D. C. Reid, William A., Acting Chief Clerk and Chief Trade Adviser Pan American Union, Washington, D. C. Rey, Luis A., Graham, Rowe & Co., New York, N. Y. Reynolds, B. H., Mexican Telegraph Co., Commer- cial Supt., 64 Broad St., New York, N Y. Reynolds, Geo. W., President, Continental and Com- mercial Nat. Bank of Chic^o, Chicago, TU. Rhea, Frank, Wheeler, Mechlin & Rhea, Advi- sory and Purchasing Engineers, 2113 West Street Buirding, New York, N. Y. Rhoads & Sons, J. E., Leather Belting Mfgs., 12 N. Third St., Phila., Pa. Rhodes, Fred A,, Foreign Trade Class, Georgetown University, Washington, D. C. Rice, Archie, Hewlett & Rice, Washington, D. C. Richard, Carlos B., Georgetown University, School of Foreign Service, Washington, D. C. Richard, O. L., 46 E. 72nd St., New York, N. Y. Richards, Jr., H., Secretary, American Metric Asso- ciation, 156 Fifth Ave., New York, N. Y. Richling, Jose, Consul General of Uruguay at Large, Consulate General of Uruguay, New York, N. Y. Rincones, Pedro Rafael, Consul General of Venezuela, New York, N. Y. Ritchings, Herbert A., Manager Export Dept., The Mosaia Tile Co. of Zanesville, Ohio, 35 W. 35th St., New York, N. Y. append'ix 445 Rivas, Angel Cesar, Acting Editor Spanish Bulletin, Pan American Union, Washington, D. C. Roberts, Eugene H., Vice President, Whitney Central National Bank, New Orleans, La. Robertson, Alfred, Representing Columbian Rope Co., Auburn, N. Y., Washington, D. C. Robertson, James A., Mgr. Editor, Hispanic Amer. Hist. Review, 1422 Irving St., N. E., ^ Washington, D. C. Robinson, Miss Bertha Gray, Editor, Orange, Va., Observer, Main St., Orange, Va. Robinson, Harrison S., Atty. for Bethlehem Shipbldg. Corp., Rep. Oakland Chamber of Com., Oakland, Cal. Robinson, Lee Lamar, Director Organization and Educa- tion, Highways Transport Com- mittee, U. S. Council of Nat. De- fense, Washington, D. C. Robinson, Myron W., President, Crex Carpet Co., 212 Fifth Ave., New York, N. Y. Robinson, O. O., Dist. Mgr., H. H. Robertson Co., 415 Equitable Bldg., Baltimore, Md. Rodriguez, Dr. Jose Santiago, Special Agent of Venezuela, Sur 2, San Francisco a Pajaritos, Cara- cas, Venezuela, Caracas, Venezuela. Rojo, Dr. Juan B., Counselor of Embassy of Mexico, 1413 I St., Washington, D. C. Romero, Dr. Jose, Assistant for Conference, National City Bank, New York, N. Y. Romero Sanson, J. L., Brazilian Mgr., Trading Engrs., Inc., 1641 Edison Bldg., Chicago, 111. Rose, John A., Nash Motors Co., Kenosha, Wis. Rosenberg, Louis James, Representing State of Michigan, Detroit, Mich. Rosenberg, M., Shipping Agent, Atlantic Forward- ing Co., Inc., New York, N. Y. Rosenthal, S. Welden, Trade Com., Bureau of Foreign and Domestic Commerce, Department of Commerce, Washington, D. C. Roth, J. Alio, Bech, van Siclen & Co., Inc., 45 E. 17th St., New York, N. Y. Rothrock, Howard E. Lieut., U. S. Marine Corps, Washington, D. C. Roth, Pablo, Manager, Export and Consignment Dept., The Union Trading Co., Chacabuco 166, Buenos Aires, Argentina. Rowe, Dr. L. S., Asst. Secretary of the Treasury, Washington, D. C. Rowe, W. S., Representing State of Ohio, Cincinnati, Ohio. Rumble, Frank L., Welsbach Street Lighting Co. of America, 262 W. Seymour St., Philadelphia, Pa. Rutter, Dr. F. R., Statistical Advice, Dept. of Com., Washington, D. C. Rynder, R. D., . Attorney, Swift & Co., Union Stock Yards, Chicago, 111. Sague, J. 'E., Worthington Pump and Machinery Corporation, 115 Broadway, New York, N. Y. Salcedo, Severo, N. Y. Correspondent, "La Nacion," of Valparaiso, Chile, 34 Wall St., New York N. Y. Salmen, Fred W., Representing City of New Orleans, New Orleans, La. 'Sampaio, Sabastlao, Consul of Brazil, St. Louis, Mo. Sanborn, George A., Babson's Statistical Organization, Wellesley Hills, Mass. Sanchez Latour, Sr. Don Francisco, Charge d' Affairs of Guatemala, 1810 Connecticut Ave., Washington, D. C. Sanchez Elia, Dr. Angel, Lawyer, Buenos Aires, Argentina. Sarbin, Joseph I., Asst. Chief Clerk, Board of Rail- road Wages and Working Con- ditions, Washington, D. C. 446 SECOND PAN AMERICAN COMMERCIAL CONFERENCE Satterthwaite, Colonel John J., Representing State of Delaware, Wilmington, Del. Sauer, Emjl, American Consul, Maracaibo, Hotel Ansonia, New York City. Schaefer, J. Louis, W. R. Grace & Co., Hanover Square. New York, N. Y. Schell, H. H., Sec. and Genl. Mgr., Schell Chemi- cal Co., Inc., 56 Pine St., New York, N. Y. Schlffmann, R., Co., Proprietary Remedies, "Asthmador," R. J. Schiffmann, 208 W. Sixth St, St. Paul, Minn. Schmitt, H. Rudolf, Latin American Dept, The Sun, New York. Sctiockel, B. H., U. S. Shipping Board, Washington; D. C. Schoff, Wilfred H., Sec. The Commercial Museum, 34th St. below Spruce, Philadelphia, Pa. Schwab, Charles M., President, Bethlehem Steel Co., Ill Broadway, New York City. Scott, B. L., Pennsylvania A. S. League, Philadelphia, Pa. Scovil, Medley, Medley Scovil, Inc., Advertising Agency, 25 Pine St., New York City. Scully, Wm. A., Department of State, Washington, D. C. Seal, E. H., Bird & Son, Inc., Washington, D. C. Seaman, R. J., Manager Bureau of Foreign and Domestic Trade, Chamber of Commerce, Pittsburgh, Pa. Seligman, Walter, Mercantile Bank of the Americas, New York, N. Y. Seike, D. C, Congressional Information Bureau, Southern Bldg., Wash., D. C. Semmes, Chas. W., Washingfton Chamber of Commerce, 617 G St., Washington, D. C. Seoane, C. A., G. Amsinck & Co., 90 Wall St., New York City. Shepard, Mrs. J. Finlay, National Board of the Y. W. C. A., 600 Lexington Ave., New York, N. Y. Shepard, Simeon, Genl. Manager for Foreign Trade, Austin, Baldwin & Co., Inc., 44 Whitehall St., New York, N. Y. Sheridan, James M., Lawyer, 1127 Woodward Building, Washington, D. C. Sherwell, Guillermo A., Juristic Expert, International High Commission, Treasury Dept., Washington, D. C. Shirley, H. G., Highway Industries Association, Towson, Md. Shultz, Walter W., Secretary, Chamber of Commerce, Hazleton, Pa. Simmons, B. F., Spice Mill Publishing Co., Inc., 97 Water Street, New York City. SimondettI, E. T., J. W. Thome & Co., ■ New York, N. Y. Simpich, Frederick, U. S. Consular Service, Washington, D. C. Sims, Yelmer V., School of Foreign Service, George- town University, Washington, D. C. Singer, B., President, Pan American Consular Association of Chicago, 616 .Nat. Life Blgd., Chicago, 111. Sinsheimer, Allen, Washington Editor, The Class Journal Co., 408 Kenois Bldg., Wash., D. C. Sirvent, Jose Chancellor of Argentine Embassy, Washington, D. C. Sivyer, Fred L., Representing State of Wisconsin, Northwestern Malleable Iron Co., Milwaukee, Wis. Slechta, J. J., Holt & Co., 95 Broad St., New York, N. Y. Smith, A. Proctor, Sec. and Gen. Mgr. North American Wood Products Corp., 50 Union Square, New York City. APPENDIX 447 Smith, Miss A. Viola, Chief, Information Section, U. S. Training Service, Department of Labor, \ Washington, D. C. Smith, D. A., Vice-President and Gen. Mgr., Dis- trict of Columbia Paper Manufac- turing Co., Potomac and K Sts., N. W., Washington, D. C. Smith, Herbert W., Importers and Exporters, Herbert W. Smith Brokerage Co., 207 W. Washington St., Chicago, III. Smith, James E., President, Mississippi Valley Water- ways Association, St. Louis, Mo. Smith, Landon B., Port Agent, Southern Railroad Lines, New Orleans, La. Smith, Lauren IVI., Auto Accessories Co., 401 Munsey Building, Washington, D. C. Smith, Pemberton, Mgr. Latin American Dept., U S Steel Products Co., 30 Church St., New York City. Smith, R. Nealev Surplus Property Divisicii, U. S. War Trade Board, Washington, D. C. Smith, Tunstall, Sec, Factory Site Commission, Room 26, City Hall, Baltimore, Md. Smith, Victor IVI., General Feight Agent, Kerr Steam- ship Co., 17 Battery Place, New York City. Smith, Walter C, Pillsbury Flour Mills Co., 301 Metropolitan Life Ins. Bldg, Minneapolis, Minn. Smithers, A. F., 3456 Broadway, New York, N. Y. Smoot, Hon. Reed, Senator from Utah, Washington, D. C. Smiull, J. Barstow, Chamber of Commerce of the State of New York, 65 Liberty St., New York, N. Y., Smyth, Robert J., The R. J. Smyth Corporation, 104 Fulton St., New. York, N. Y. Sol M., Dr. Don Salvador, E. E. and M. P. of Salvador, 1722 Massachusetts Avenue, Washington, D. C. Solomon, T. M., Pres., T. M. Solomon Co., Inc. New York, N. Y. Soper, Major George A., Surgeon General, Washington, D. C. Southgate & Co., T. S., Wholesale Merchants, Tagewell St., Norfolk, Va. Spanish American Bureau of informa- tion, Mercantile Agency, 1265-1269 Broadway, New York, N. Y. Spencer, Col. Chas. Hardee, Wholesale Grocery, Tampa, Fla. Stahl, Adolfo, Banker, Proprietor of Schwartz & Co., Guatemala, 38 Pine St., New York, N. Y. Steenstrup, P. S., General Motors Export Co., New York, N. Y. Stempel, Dr. J. H. T., Manager, Cooperation Depart- ment, La Hacienda, Buffalo, N. Y. Stephens, Tom3s E., La Nacion, Buenos Aires, Argentina. Stern, Carl W., M. J. Corbett Co., 24 State St., New York, N. Y., Stern, Donald MacGregor, Ingenieria Internacional. McGraw- Hill Co., New York, N. Y., Stevens, Clarence S., Managing Director, Am. Milk Products Corp., 302 Broadway, New York, N. Y. Stewart, Glenn, Latin American Division, Department of State, Washington, D. C. Stewart, James B., American Consul, Chihuahua, Mexico, Room 109, Department of State, Washington, D. C. Stewart John R., War Trade Board, Bureau of For- eign Agents — Second Ward Sav- ings Bank, Second Ward Savings Bank, Milwaukee, Wis. 448 SECOND PAN AMERICAN COMMERCIAL CONFERENCE Stewart, J. W., Mgr., Naval Architect, J. W. Isher- wood, "Isherwood System of Ship Construction." 17 Battery Place, New York, N. Y. Stockton, Chas. W., Lawyer, Stockton & Stockton, 51 Broadway, New York, N. Y. Story, Sidney, Vice-President, U. S. Maritime and Development Co., Majestic Bldg., Detroit, Mich.. Stowell, 'Edwin H., Victor R. Browning & Co., Cleveland, Ohio. Strange, John, John Strange Paper Co., Paper and Pulp, Menasha, Wis. Stralton, S. W., Chief, Bureau of Standards, Washington, D. C. Suckerman, Jack, Banking, Mercantile Trust Co., P. O. Box 1433, St. Louis, Mo. Sullivan, D. J., Assistant Trade Head, W. L and Caribbean Trades, U. S. Ship- ping Board, 87 New York Ave., N. W., Washington, D. C. Sullivan, John, Assn. Natl. Advertisers, 16 E. 26th St., New York, N. Y., Sundberg, Sr., Don Axel, Care Consul General of Uruguay, New York, N. Y. Sutton, C. W., Vice-President and Consulting Engr., L. J. Lewery & Co., Inc,. 17 Battery Place, New York, N. Y. Sweet, James Allen, Mgr. For. Dept., Natl. Credit Off., 45 E. 17th St., New York, N. Y. Sweinhart, Henry L., (Assistant for the Conference in Charge of Publicity) Press Cor- respondent, ISth and L Streets, N. W., Washington, D. C Tackaberry, Frederic H., Vice-President, American Steel Export Co., Woolworth Building, New York, N. Y. Tarler, G. Cornell, State Department, Washington, D. C. Taylor, Nobe, United Press, World Bldg., New York, N. Y. Taylor, W. W., Mining Engineer, Bened/ict Coal Corporation, Lynchburg, Va. Teehee, Houston B., Register of the Treasury, Washington, D. C. Teeter, William H., Director M. E. Centenary in Latin America, M. E. Church, 111 Fifth Ave., New York, N. Y. Tessier, Jr., C. A., 134 Carondelet St., New Orleans, La. Thayer, D. W. Board of Trade, Washington, D. C. Thiesing, Theodore H., International High Commission, Treasury Department, Washington, D. C. Thomas, Eugene P., Pres., U. S. Steel Products Co., 30 Church St., New York City. Thomas, J. S., Export Mgr., Spang, Chalfant & Co., Inc., 2007 Union Bank Bldg., Pittsburgh, Pa. Thompson, Frederick, Western Pipe & Steel Co. of Cal., San Francisco, Cal. Thompson, Hon. Joseph B., Representative, State of Oklahoma, Washington, D. C. Thompson, IVIilton W., Prof., Economics and Finance, Mar- quette University, 256 13th St., Milwaukee, Wis. Thompson, S. A., National Rivers and Harbors Con- gress, Washington, D. C. Thome, John W. & Co., Incorporation, 165 Broadway, New York City. Thorpe, Col. G. C, U. S. Marine Corps, Norfolk, Va. Titus, Arthur H., Vice-Pres. National City Bank, 55 Wall St., New York City. Titus, F. E., B. F. Goodrich Rubber Co., Akron, Ohio. Tocornal, Sr. Don Juan Enrique, Chilean Special Mission, Waldorf-Astoria, New York City. APPENDIX 449 Todd, Frederick, Editor, The Americas, The National City Bank, New York City. Todd, William H., Pres. Todd Shipbuilding Co., Brooklyn, N. Y. Toledo Herrarte, Senor Dr. Luis, Special Mission of Guatemala, 2006 Columbia Road, Washington, D. C. Tompkins, James G., Asst. Trade Head, W. I. & Carib- bean Trades, U. S. Shipping Board, 4916 Belt Road, Wash., D. C. Tores, Manuel M., Mexican Embassy, Washington, D. C. Tower, Geo. Warren, Jr., Guggenheim Bros., 120 Broadway, New York City. Tower, W. S., Consolidated Steel Corporation, New York, N. Y. Townsend, Capt. A. R., Military Intelligence Division, War Department, Washington, D. C. Tregoe, B. B,. Mgr. Foreign Credits Bureau, National Association of Credit Men, 41 Park Row, New York City, Tucker, William R., Sec. and Asst. Treas. Philadelphia Board of Trade, Bourse Bldg., Philadelphia,' Pa. Tudela y Varela, Sr. Don Francisco, Ambassador E. and P. of Peru, 2131 Mass. Ave., Wash., D. C. Tuska, Major G. R., 68 William St., New York, N. Y. Tyler, Wm. R., Hotel Seville, New York, N. Y. Ulman, Leon S., Bakery Owner, Holmes and Son, Inc., 107 F St., N. W., Wash., D. C. Urueta, Senor Dr. Carlos Adolfo, E. E. and M. P. of Colombia, 1327 16th St., Washington, D. C. ' Uzzell, Thomas H., New York Ave. Station, R. F. D. No. 2, Washington, D. C. Vance, Creuzet, The Ralston Steel Car Co., Columbus, Ohio. Van Cleve, N. W., Trade Statistician, U. S. Shipping Board, 1317 F. St., N. W., Wash., D. C, Vandegrift, Joseph A., Vice-Pres., Peruvian Copper & Smelting Co., New York, N. Y. Vanderlip, F. A., Pres., National City Bank of New York, New York City. Van Dyke, Harry W,. Latin American Law Office, Woodward Building, Washington, D. C. Van Wagener, Jas., H., International Boundary Commission, 719 ISth St., N. W., Wash., D. C. Veioz, Nicolas, Consul of Venezuela, New Orleans, La. Venable, H. G., Consolidated Rolling Mills & Co., 25 Broad St., New York, N. Y. Viilanueva, Sr. Don Augusto, Chilean Special Mission, Waldorf-Astoria, New York City. Santiago, Chile. Vilter, Theodore O., Representing State of Wisconsin, Milwaukee, Wis. Vogel, C, The Atlantic Refining Co., 3144 Passyunk Avenue, Philadelphia, Pa. Wade, Festus J., President, Mercantile Trust Co., St. Louis, Mo. Wagner, C. 'E., Export Mgr., The Miller Rubber Co., Akron, Ohio. Walker, Burnett, Banker, Harris, Forbes & Co., . New York, N. Y. Wallace, Miss Vyvian H., Oxford, Miss. Walsh, Edmund A., Regent, Georgetown University School of Foreign Service, Washington, D. C. Walsh, Henry Collins, President, Travel Club of America, 192 Claremont Ave., New York, N. Y. 450 SECOND PAN AMERICAN COMMERCIAL CONFERENCE Walsh, John, Former Chief Counsel of the Fed- eral Trade Commission, 404 Southern Building, Washington, D. C. Walton, H. C, Contracting Engineer, McClintic- Marshall Co., SO Church St., New York, N. Y. Wands, Ernest H., Vice-President, Chandler & Co., 35 Pine St., New York, N. Y. Wardall, R. H., War Trade Board, Room 239, Cor. C and 20th Sts., Washington, D. C. Wardle, Robert, Gen. Freight Agent, Clyde Steam- ship Co., 11 Broadway, New York, N. Y. Wardrop, Douglas, Aerial Age, 280 Madison Avenue, New York, N. Y. Warner, Louis H., National Council of Am. Cotton Manufacturers, 1514 H St., Washington, D. C. Watson, John G., Mgr. U. S. Rubber Export Co., Ltd., Caixa Postal 789, Rio de Janeiro, Brazil, 1790 Broadway, New York, N. Y Waurgaft, L. M., President^. Youroveta Home and Foreign Trade Co., Inc., 165 Broadway, New York, N. Y. Weaver, Sylvester L., Second Vice-Pres., Los Angeles Chamber of Commerce, 128 South Broadway, Los Angeles, Cal. Webb, Wm. T., Construction Engineer, Providence, R. I. Wehle, Louis B. General Counsel, War Finance Corp., Washington, D. C. Weir, Clarence E., * Merchants Bank Building, Indianapolis, Ind. Wells, Carl S., Banker, Mgr., Commercial Service Dept., The First National Bank, 70 Federal St., Boston, Mass. Wells, William C, Chief Statistician, Pan American Union, Washington, D. C. Wendt, W. F., Buflfalo Forge Co., W. F. Wendt Pub. Co., Buffalo, N. Y. Werckenthein, William, Mgr. Export Dept., The Island Petroleum Co., 410 Keyser Bldg., Baltimore, Md. Wetten, Emil C, Wetten & Matthews, 108 S. Lasalle St., Chicago, 111. Whelan, John W., John A. Roebling's Sons Co., Washington, D. C. Whedfer, T. M., The Coastwise Shipbuilding Co., Foot of Andre Street, Baltimore, Md. Wheeler, Earl, Wheeler, Mechlin & Rhea, Engineers, 2113 West St. Bldg., New York, N. Y. Wheeler, T. W., Wooden Shipbuilding, The Coast- wise Shipbuilding Co., Foot of Andre Street, Baltimore, Md. White, J. W., General Railway Signal Co., New York, N. Y. Whitehead, Allyn G., McGraw, Hill Co., 3500 Fairview Avenue, Baltimore, Md. Whitford, Geo. L., Lawyer, Representing New Hamp- shire, Washington, D. C. Whitmarsh, Henry E., Havana, Cuba. Whitney, Fred Brown, Chairman, The Deselektro Co., Evans Bldg., Washington, D. C. Whitney, R. M., Associated Press, Washington, D. C. Wilbur, Edward C, Trades Dept., Div. of Operations, U. S. Shipping Board, Washington, D. C. Williams, C. B., Underwood Ts^pewriter Co., New York City. Williams, J. C, Manager, Development Service, Southern Railroad, 1300 Pennsylvania Ave., Washington, D. C. Williams, Nathan B., National Association of Mfs., Union Trust Building, Washington, D. C. Willoughby, Dr. W. F., Regional Economist for Latin America, Office of For. Trade Adviser, Department of State, Washington, D. C. Wilson, Charles E., Assistant General Sales Manager, Worthington Pump & Mch. Co., lis Broadway, New York, N. Y. Wilson, Kwrtz, Special Representative Canton Co. of Baltimore, Keyser Bldg., Baltimore, Md. Wilson, Otto, 612 Munsey Building, Washington, D. C. Wilson (So. D.), W. P., Director, Philadelphia Museum, 34th Street below Spruce, Philadelphia, Pa. Wilson, Wm. Robert, Vice-Pres. Irving Nat. Bank, Woolworth Building, New York, N. Y. Winter, M. A., The M. A. Winter Co., Winter Building, Washington, D. C. Wlsner, Hon. Frank G., Representing State of Mississippi, Laurel, Miss. Witkowsiki, Louis C, Jonathan Bartley Crucible Co., Trenton, N. J. Wolfsohn, Arthur, Vice Pres. and Genl. Mgr., Argen- tine Industrial and Financial Cor- poration, 223 Broadway, New York, N. Y. Woods, Col. Arthur, Assistant Secretary of War, Washington, D. C. JDix 451 Wooton, Paul, Engineering and Mining Journal, Union Trust Bldg., Washington, D. C. Yanes, Francisco J., Assistant Director, Pan American Union, Washington, D. C. Yanez, Sr. Don Ellodoro, Chilean Special Mission, Waldorf Astoria, New York, N. Y., Santiago, Chile. Yariez, Louis Fidel, Chilean Financial Commission, Waldorf Astoria, New York, N. Y., Santiago, Chile. Ycaza, Gustavo R. de. Consul General of Ecuador, New York, N. Y. Yost, Howard McC, Major of Engineers, U. S. A., 27S0 Munitions Bldg., Washington, D. C. Youngman, Elmer H., Editor, The Bankers Magazine, 253 Broadway, New York, N. Y. Zamora, Serior Don Julio, Financial Agt., Bolivian Govern., Waldorf Astoria, New York, N. Y., La Paz, Bolivia. Zavala, Manuel, Secretary of Nicaraguan Legation, Washington, D. C. Zermeno, J. N., Attorney at Law, The_ Mexican Fibre Producers Association, 3405 Woolworth Bldg., New York, N. Y. Zumeta, Dr. Cesar, Station F. Box 6, New York, N. Y., Caracas, Venezuela. 4S3 INDEX Acuna, Alberto, paper, 234. Adams, Franklin, Chief Clerk, Pan American Union, telegram, 62. Adams, John Quincy, 272. Adams-Williams, Mrs. L., remarks, 78. Addresses and papers, 89-387. Advertising: care in preparation, 394; censorship, 348-350; experts for pub- licity campaigns, 79; dishonest, 74, 75; drugs, 75; honest and dishonest, 348, 349; how directed, 244, 246; mo- tion pictures for, 356-359; rates of Latin American papers, 368, 369; ways of, 55, 56. (See also Intelli- gence and Publicity). Advertising literature: Brazil, 124, 217; Latin America, 363-365; trans- lations, 72, 73, 363-365. Aero Club of America, 235, 238. Aeronautic Convention, Second Pan American, 236. Aeronautics, (see Aviation). Aeroplanes, (see Aviation). Agriculture: Bolivia, 113, 114; Brazil, 123; Colombia, 141, 142; Costa Rica, 145; Dominican Republic, 152, 153; Ecuador, 156; Guatemala, 164; Haiti, 168; Honduras, 173; Nicaragua, 178; Panama, 37; Paraguay, 38, 185; Sal- vador, 204; Venezuela, 217, 218. Agriculture, Department of, 272. Aircraft, (see Aviation). Aircraft Association, 238. Air mail service, (see Aviation). Alrey, Sir George, 272. Albes, Edward, paper, 360-363. Aldao, Campos & Gil, 283. All Americas Cable Co., 79, 87, 353. All America Film Service, 356. Allen, Wing B., remarks by, 44, 54, 55. Allock, Harry, 268. Alpers, Ernest, remarks by, 55. Alves de Lima, J. C, (see de Lima). Amazon River, 117. American Association for International Conciliation, 76. American Association for the Advance- ment of Science, 267. American Association of Teachers of Spanish, 56. American Bankers' Association, 349. American Chemical Society, 267. American Cotton Oil Co., 283. American Drug Manufacturers' Asso- ciation, 267. American Graphophone Company, 283. American Institute of Chemical En- gineers, 267. American Institute of Weights and Measures, 54, 270, 272. American Malaria Committee, 344. American Metric Association, 54, 266- 270. American Manufacturers' Export Asso- ciation, 246-273; American, Pan, see Pan American; Americanism, Pan, see Pan Americanism. American Pharmaceutical Association, 267. American Piano Company, 283. American Pneumatic Service Com- pany, 283. American Screw Company, 251. American Society of Mechanical En- gineers, 271, 273. American Surety Company, 307. American Tobacco Company, 283. Anchorena, Jacinto, 14. Andes Exploration Company, 199. Andes, mineral resources, 8. Appendix, 389-419. Arbitration boards, 10. Arbitration, (see Commercial Arbitra- tion). Arenales, Alfonso: mentioned, 161; paper, 164, 165. Arellano, Carlos, paper, 52, 176, 177. Argentina: American hanks, 95; Amer- ican firms in, 95; Americans in, best liked foreigners, 58, 96; American news, 95; Associated Press service, 95, 96; balance of trade, 26, 91; buy- ing limited, 96; capital of, 11; coal for railways, 16; commerce, 92, 399- 401; characteristics, 91; commerce with U. S., 16, 17; commerce with U. S., how to increase, 14, 15, 92-96; commercial map, 29; commercial ar- bitration treaty with U. S., 10; com- plaints against American exporters investigated, 16, 17; consular char- ges, 288; credits, 96, 105; currency and exchange, 266, 267; diagram of foreign commerce, 40; European competition, 95, 96; exports, 91, 399- 401; foreign capital In, 93, 94; foreign debt, payment, 96; future of trade with U. S., 14; how to deal with people of, 15; imports, 15, 16:. 91, 399-401; imports from' U. S., 14, 15; investments, 92-94; loans to al- lied nations, 96; long stay necessary, 17; malaria investigations, 344; man- ufactured articles, oversurplus, 96; moving pictures from U. S., cause of better Idea of U. S.; papers and addresses on, 91-96; paper trade, 96; parcel post, 277, 278, 280; prosperity of, to whom due, 91; racial elements, 263, railways, 311; reasons for great- er trade with Europe, 15; sales of U. S. goods more widely distributed 454 SECOND PAN AMERICAN COMMERCIAL CONFERENCE Argentina — Continued: than European, 15, 18; trade balance in favor of, 26; tramways, 319; U. S. Chamber of Commerce in Buenos Aires, 56-57. Army Air Service, 235-238. Associated Business Papers, 78, 351- 353. Associated Advertising Clubs of tiie World, 348, 349. Associated Press: service to Argen- tina, 95, 96; President of, (see Noyes, P. B.) ; work of In Pan Amer- icanism, 345, 346. Association of Railway Master Me- ciianics, 272. Atrato River, 141. Aviation as aid to Pan American Com- merce: appropriation by Congress for mail service, 59; development, 237; mail service, 49, 59; papers and discussions on, 48-51, 235-238; parcel post service by air, 59; shipment of soap to Cuba by aeroplane, 49-51; Standard Oil Company's air service to Mexico, 51; U. S. Army, 235-238. B Babcocl<, Ciiarles E., paper, 284-385. Badillo, M,, remarks, 81. Bahamas, parcel post, 277. Baiiia, death rate, 344. Baker, Charles W., paper, 69, 323-330. Bananas: Costa Rica, 145; Honduras, 173; Nicaragua, 179; Panama, 182. Bankhead highway, 335, 336. Banks and banking: American trans- actions in Latin America, how con- ducted, 98; Argentina, 95; balances of Latin America banks in U. S., 53; basic factor in trade, 233; branches in Latin America, 95, 98; Chile, 131- 133; Colombia, 141; cooperation with merchants, 231; Cuba, 146; European methods in Latin America, 103; facilities, 310; financing irriga- tion, 322; financing Latin American governments, 304; Honduras, 171; Latin America, 217; liability of ex- port firms, reports by banks, 52; Mexico, 177; Paraguay, 192-194; Peru, 198; transactions through for- eign banks before the war, 22; Uru- guay, 206; Venezuela, 213. Barbados, parcel post, 277. Bard, Dr. H. E., paper, 85; 378-380; thanks to, 87. Barra, Jorge, paper read -by, 66. Barranco, Dr. Manuel, 381. Barrett, John, Director General, Pan American Union; foreword, ix; clos- ing address and review of work of Conference, 85-88; mentioned, 138, 176, 227, 283, 301, 334, 353; paper on Practical Pan Americanism, 389-394 ; quoted, 138, 347; remarks at open- ing session, 1; report descriptive of work and activities of the Pan American Union, 394-397; rules of the Conference read by, 12; vote of thanks to, 83. Barrett, Robert S.: remarks, 52; paper, 79, 95, 96. Bates, C. A., 272. Behrman, Martin, Mayor of New Or- leans: address by, 46, 225-227. Belgium, investments in Latin Amer- ica, 303. Bello Horizonte, death rate, 344. Bell, Professor Alexander Graham, 236. Bensabat, Leon, paper, 76, 122, 123. Berne Trade Mark Convention, 59. Bethlehem Steel Company, 300; presi- dent of, (see Schwab). Bills of lading, 287-291. Blaine, James G., 346, 389. Board of Commissioners of District of Columbia, President of, (see Brown- low, Louis). Bogart, Maurice B., remarks, 45. Bolivar, Simon, 203, 289. Bolivia: address by Minister Ignacio Calderon, 7, 8; agricultural imple- ments, market for, 113, 114; agricul- tural possibilities, 113, 114; Ameri- can capital preferred, 97; antimony, 111; budget, 107, building materials, market for, 113; cement, market for, 113; commerce, 107, 399-401; com- mercial conditions, 102-115; commer- cial map, 29; communication, means of, 105; construction of buildings, 113, consular charges, 288; copper, 111; credits, 105; currency and ex- change, 104, 107, 108, 266; debt, pub- lic, outstanding balance, 99, 101, 107; development of country, 114; dia- gram of foreign commerce, 50; eco- nomic situation, 104, 108, 109 ; Europe predominant in trade of, 103; ex- ports, 103, 111, 112, 399-401; exposi- tion of agricultural implements pro- posed, 114; financial situation, 98- 102, 108; flour, 113, foreigners, pro- tected by laws, 101; freights to Eu- rope cheaper than to U. S., 101, 102; German methods in, 103; imports, 104, 107, 112, 399-401; Indians of, 114, 115; industrial problems, 108, 109; internal debt, 101, 107; investments, 8, 114, 115; irrigation, 113; loans, 99- 101, 107; lumber, 112; mines and min- erals, 104, 108, 111, 112, 114; obli- gations met punctually, 99, 101, 106, 107; parcel post, 277; per capita debt, 101; politics, 101, potato rais- ing, 115, President's greeting to Con- 455 Bolivia — Continued: ference, 6; Qulnua, 115; racial ele- ments, 263; railroads, 8, 98, 102, 105, 107, 113; share in World's War, 111; shipping facilities, 115; tin, 102, 104, 105, 111, 112; U. S. capital needed, ■ 101, 106; TJ. S. trade with, 103-106; transportation in, 105; vegetable products, 115; Wolf ran, 104. Bonet, P. A., Secretary of Cuban Le- gation: paper by, 35, 147. Bonillas, Ygnacio, Mexican Ambassa- dor, member sub-committee on ar- rangements, 1. Booth Steamship Line, 403. Borges, Esteban Gil, Minister Foreign Affairs, Venezuela, 212. Boss! Cdceres, Horacio, Argentine Con- sul General in San Francisco: paper, 92-94. Boston Globe, 236. Boston University: commercial courses, 373; Portuguese courses, 381. Bowles, Rear Admiral, 272. Bramwell, Sir Frederick, 272. Branded articles, distribution of, 243, 244. Brazil: advertising literature for, 124, 127, 363-365; agriculture, 117, 122, 123; American Chamber of Com- merce, 124; automobiles, 127; canned foods, duties, 123; capital, need of, 117; cocoanut oil industry, 58, 117- 119: coffee, 116, 117, 121, 122; com- merce, 117, 399-401; commercial map, 29; communication, means of, 117; consular charges, 288; credits, 123, 124; customs and ways of people, 127; customs laws, changes affecting American trade, 119, 120; customs tariff, 294; currency and exchange, 266; death rate, 343; diagram show- ing foreign commerce of, 60; exports, 399-401; flour, 123; German exploita- tion ended, 117; hides, 26; hotels, 127; imports, 399-401; industries, 117, 122; investments, 117, 125, 126; invoices, 127; manganese, 31- 34; meat industry, 117,123; merchan- dise preferred by, 127; merchant marine loaned to Allies, 121, 122; mining, 117, 123; opportunities in, 125-128; parcel post," 276, 277; racial elements, 263; railroads, 117; re- ciprocity with U. S., 58; Rio de Jane- iro, municipal bonds, 27, 101, 347; Rio de Janeiro, per capita debt, 101 ; rubber industry, 30-32, 117, 122; salesmen in, 127; shipping, 117, 127; social life, 128; tariffs, preferential, 119-121; tobacco, 117; trade laws, changes affecting U. S., 119, 121; trade marks, 124; trading in, 122, 123, 126, 127; travelling in, 127; United States trade with, 121, 122, 125; United States traditional friend- ship with, 123; waterways, 117; World War, share in, 121, 122. Brazilian-American Trade Review, 124. British Board of Trade, 272. British Guiana, parcel post, 277; trade with U. S., 26. British Honduras: currency and ex- change, 266; parcel post, 276; trade with U. S., 26. Brown and Sharpe Manufacturing Company, 273. Brown, Lloyd, paper read by, 69. Brownlow, Louis, President Board of Commissioners, District of Colum- bia, address, .12. Brum, Baltasar, President of Uruguay, message read, 6; mentioned, 39. Buenos Aires: finer than Chicago, 11; death rate, 343; see Argentina. Bueso Brothers, 172. Bulletin of Pan American Union, (see Pan American Union). Bunster, Enrique L., paper, 134. Burbank, Luther, 115. Business ethics, (see Trading Meth- ods). Business houses represented in Con- ference, 405-419. Business press, how it serves indus- try, 351-353. Butterick Company, 283. Cable news and service, 58, 95, 353- 355, (see also Intelligence and Pub- licity). Cableways, 316-320. Cabrera, (see Estrada Cabura). Cacao, (see Cocoa). Calderon, Ignacio, Bolivian Minister, address by, 7, 8; mentioned, 87. California, exports to Bolivia, 113; University of, Latin American his- tory courses, 381. Calley, Mrs. Joan, paper, 356-359; re- marks by, 41, 55, 56. Camacho, Manuel de J., Dominican Consul General in New York, paper, 152, 153. Canadian Trade Commission, 247. Capital and labor, 7. Capital, (see Investments). Caproni, 235. Carlos, Alvarez 'Calderon, remarks, 38. Carnegie Endowment, 391. Catalogs, (see Advertising Literature). Cattle, (see Live Stock, and names of respective countries). Catchings, Benjamin, paper, 54, 220- 252. 456 SECOND PAN AMERICAN COMMERCIAL CONFERENCE Cauca River, 141. Cement, Bolivia, market for, 113. Centrai America, (see LAtin Amer- ica). Cesar River, 141. Cerro de Pasco Copper Corporation, 21, 197, 198. Chamber of Commerce of the U. S., part in promoting Pan American Commerce, 10-12; President of, ad- dress by, 10-12; w^ork of, 391; Buenos Aires branch, 56, 57. Chambers of Commerce': arbitration agreements, 51, 52, 64; American, of Rio de Janeiro, 76, 124; Honduras, 172; Venezuela, 212; Washington, D. C, thanks to, 88; St. Louis, 72. Chamorro, Diego Manuel, Minister of Nicaragua, 36. Chandler, Charles Lyon, remarks, 37. Chandler Motor Car Company, 283. Charts, (see Diagrams). Chicago Association of Commerce, 306. Chile: banks and banking, 131-134; Caja de Emisifin, 132, 133; circula- tion of money, 131-133; commerce, 399-401; commercial and industrial education, 135-137; commercial map, 29; communication, means of, 134; consular charges, 288; conversion of paper money, 131, 132; customs tariff, 292, 284; currency and ex- change, 131, 266; diagrams showing foreign commerce of, 70; exports, 399-401; finances, 131-133; foundry business, 34; furniture manufactur- ing, 34; harbors, 134; Honduras, Chilean imports in, 172; imports, 399-401; industrial development, 129, 130; investments, 129; Japanese in, 129; nitrate, 129; paper manufactur- ing, 34; parcel post, 59, 276-278; President's message to Conference, 5; promotion of manufactures, 34; racial elements, 263; road construc- tion and repair, 34; railroads, 134; shipping, 134; tin imports from Bo- livia, 104; trade balance in favor of, 26. Chilean Steamship Line, ^402. Chiriqui, (see Panama). Cinematograph, (see Moving Pictures). Claussen, John C, 94. Clay, Henry, 389. Clearance Fund Treaty, 64. Closing Session, 81-89. Cluett, Peabody and Company, 283. Coast Survey, 272. Cocoa: Dominican Republic, 152, 153; Haiti, 169; Nicaragua, 179; Vene- zuela, 219. Coconut oil: Brazil, 58, 117, 118; Do- minican Republic, 155; Nicaragua, 179; Panama, 182. Coffee: Brazil, 116, 117, 122; Colom- bia, 141 ; Dominican Republic 152, 153; Guatemala, 158; Haiti, 168, 169; Nicaragua, 178; Panama, 37; Para- guay, 187; Salvador, 204; Venezuela, 219. Collao, Alfredo vdH.: Motion seconded, 12; paper, 79, 355-356. College of the City of New York, com- mercial courses, 373. Colombia: agriculture, 141, 142; avia- tion, 35; banks and banking, 141; capital needed, 139; communication with interior, 34-35, diagram show- ing the foreign commerce of, 70; commerce, 141, 399-401; commerce with the United States, 138, 139; commercial map, 29; commercial opportunities, 141; consular charges, 288; currency and exchange, 267; custom tariff, 292; emeralds, 141; exports, 141, 399-401; imports, 138, 139, 399-401; industries, 141; live- stock, 141; meat industry, 141, 142; mines and miiriing, 141, 142; oppor- tunities for trade and investment, 139; parcel post, 275-279; President's message to Conference, 5; products of, 141; racial elements, 264, rail- roads, 34, 35, 141; roads and high- ways, 34, 35; shipping, 45; water- ways, 141. Columbia University: Latin American history courses, 381; Portuguese courses, 381. Columbus Menaorial Library: (see Li- brary of The Pan American Union). Colver, W. B., Chairman Pederaljrrade Commission, 54, 249. Combinations, trade, (see Webb-Pom- erene Law). Commerce, Department of: reports of, 213; spirit of, 22; (see also Foreign and Domestic Commerce). Commerce, Pan American: see review by Director General Barrett, 389-394; after-war conditions, how to meet, 393; analysis of, 21-30; aviation as an aid to, 235-238 ; balance of trade, 2, 6, 232; based on mutual interest, 23; basic factors in, 233; basis of diplo- macy, 4; business journals' service to, 351-353; career, 380, 381; changes byWorld'sWar,19, 21-23, 97, 102, 111, 158, 178, 213, 215, 218, 223, 232, 393; comparative survey, 398-401; compe- tition, 23, 215; confidence, principal factor, 4; conquest by trade obsolete, 30; cooperation of banker, 231; cul- tural element, value of, 376, 377; credit balances in favor of Latin America, 26; development, sugges- tions for, 21, 30; distributing centers, 182; drawbacks, 11, 199, 214; during Commerce, Pan American — Continued, war, 138, 398-401; education in rela- tion to, 368-370; engineers' pioneer- ing spirit, 333-334; essential to ship- ping, 229; fairness and courtesy- essential, 10, 11; free ports, 47, 48, 225, 227; free trade, 58, 205; Ger- many's sliare, 392; growth of, 390; hindrances, 11, 199, 214; language study, 377, 378; library of Pan Amer- ican Union, information on, 384-387; Mississippi Valley Waterways Asso- ciation In relation to, 337; mutuality of interest essential, 129, 139; New Orleans in relation to, 225-227; non- ethical practices, 242; opportunities for young men, 381-383; Panama's importance to, 182; parcel post ser- vice, 275-280; price fixing, factor in, 260-262; principal factor in interna- tional friendship, 102; propaganda necessary, 17; reciprocity, 58, 306, 307; requirements for meeting post-bellum conditions, 393; selling branches in Latin America, 17; serv- ant of the public, 23, 24; suretyship essential, 307-309; survey, 398-401; trade campaigns necessary, 17; war influence on, 19; ways for carrying, 22, 23; (see also Latin America, Trading Methods, names of respec- tive countries). Commerce, Secretary of, (see Redfield, William O.). Commercial Arbitration, 57, 64, 202. Commercial Conference, First Pan American, 1, 88. Commercial Conference, Second Pan Ame'-ican: adjourned, 88; benefits, 74, Bolivian Ministers view or, 7, call, xiv; Chilean Ambassador's view of results of, 56; delegates, list of, 405-419; experts, xviii; firms repre- sented, 405-419; general information for delegates, xviii; inaugural ses- sion, 1-11; need of, 164; number of delegates, 86; officers of, xvi; pro- gram.xx ; resolution authorizing, xiii ; resolution of appreciation of presi- dential messages; results, 10, 76, 85, 176, 178; review of work of, 85-88; rules, xviii; read by Director Gen- eral Barrett, 12; significance, 19, 41, 42, 102, 213; Speaker Gillett's view of, 10; vote of thanks, 83. Commercial intelligence and p'ublicity, (see Intelligence). Commercial organizations represented in Conference, 405-419. Commercial reciprocity, 306, 307. Commercial travellers: Brazil, 127; ethics, 239-242; Guatemala, 159, 161, 164; Honduras, 172; Mexico, 177; need of, 383; Panama, 183; qualifica- Ex 457 tions, 243, 244; special training rec- ommended, 183; taxes and regula- tions, 291; trade routes, 402-404; un- scrupulous, 201; Uruguay, 207, 208; knowledge of language and psychol- ogy of Latin Aanerica, 202. Commercial Travellers' Treaties, 64, 158, 164. Commercial Treaties, 205. Commission agents and houses, 201, 243, 244, 245. Commissioner of Patents, (see New- ton, James P.). , Commissioners of the District of Co- lumbia, President of Board of, (see Brownlow, Louis). Communication, means of, (see Rail- roads, Roads, Shipping, Waterways, and names of respective countries). Competition: factor in commerce, 23; Webb-Powerene Law, 247-252. Congress of American 'Economic Ex- pansion ^and Commercial Education, 369. Conquistadores, work, 144. Consular invoices: Annoyance to trade, 287-292; fees, 288; parcel post, 279; uniformity, 297 (see also In- voices). Copyright Convention, 286. Copyrights, (see Trade Marks and copyrights). Corea, Luis F.r address, 82; resolu- tion introduced, 82. Corbacho, Jose, paper, 199-203. Corbin, Alfred O., paper, 309, 310. Cornell University, Portuguese courses 381. Coronado, Henry E., remarks, 30, 31, 34, 36, 55, 71. Coronado, Jose M., paper, 139-142; re- marks, 34, 35. Consular reports, 213, 382. Costa Rica: agriculture, 145; com- merce, 399-401; commercial map, 28; currency and exchange, 266; customs revenues, 144, 145; death rate, 342; diagram of foreign trade, 90; ex- ports, 399-401; finances, 144, 145; his- tory, 144; imjports, 399-401; judici- ary, 144; land registration, 144; par- cel post, 280; racial elements, 264; sanitation, 144; schools, 144; taxa- tion, 144; trade and finances, 144, 145. Coster, Victor M., 115. Cotton: Colombia, 141; Dominican Re- public, 153; Haiti, 159; Paraguay, 185; Peru, 20, 195. Countinho, J. de Siqueira, paper, 125; remarks, 32. Credits: Argentina, 46; basic factor in trade, 232; Bolivia, 105; Brazil, 123, 124; Dominican Republic, 152; 458 SECOND PAN AMERICAN COMMERCIAL CONFERENCE C red its — Continued : Europe, 310; Guatemala, 161, 164, 165; Honduras, 1757 information for granting, 349; Latin America, 202, 217; Mexico, 177; Peru, 20; sliipping documents, 290; Suretysliip, 308. Crocker National Bank of San Fran- cisco, 94. Cuba: agricultural products, 149; area, 147; banks and banking, 146; com- merce, 146-151, 399-401; consular charges, 288; currency and exchange, 267; death rate, 149; diagram of foreign commerce, 100; exports, 147, 148, 399-401; finances, 151; immigra- tion, 151; imports, 148, 399-401; par- cel post, 276-278; trade balance, 26; railroads, 151; shipping, 146; sugar industry, 151; telegraphs, telephones, 151; tourists, 149, 151; trade marks, 61; travelling, 149. Currency and Excliange: Bolivia, 104, 107; Chile, 131, 133; Honduras, 171; Latin America, 266; Paraguay, 192; Peru, 198; redemption of inflated, 243; specie payments stopped, 304; Uruguay, 206; Venezuela, 213 (see also Exchanges, Finances and names of respective countries). Curtiss Aeroiplane Company, 235. Customs regulations and tariffs: an- noyance to trade, 287-291; Brazil, changes affecting American articles, 119-121; common Spanish technical terms in, 333; Latin America, 292- 295; parcel post, 279; uniformity, 295-297; Venezuela, 214 (see also Trade regulations). Cutler, Dr. Burwell S., Chief Bureau of Foreign and Domestic Commerce: paper, 51, 239-243 ; remarks, 51, 52. D Dalrymple, Captain, remarks, 81, 82. Davles, W. W., paper, 78, 350-351. Davis, Major Harry, remarks, 45, 46. Dean, Charles Ray, remarks by, 32. Death rate, decrease of, in Latin America, 324-246. Debt, public: service of, 304 (see also loans and names of the respective countries). Deichman, C. F., remarks, 17. Delegates to the Conference, 405-419. De Lima, J. C. Alves, Consul General of Brazil, papers, 117, 118; remarks, 58. Del Rio, (see Nieto del Rio). De Menezes, (see Langgaard de Menezes). Dennison Manufacturing Company, 283. Deselektro Company, 333. De Wolf, Richard C, paper, 285-286. De Hoyos, (see Hoyos). Diagrams of foreign trade: Argentina, 40; Bolivia, 50; Brazil, 60; Chile, 70; Colombia, 80; Costa Rica, 90; Cuba, 100; Dominican Republic, 110; Ecua- dor, 120; Guatemala, 130; Haiti, 140; Honduras, 150; Mexico, 160; Nica- ragua, 170; Panama, 180; Paraguay, 190; Peru, 200; Salvador, 210; United States, 220, 221; Uruguay, 230; Venezuela, 240. Diario de Guatemala, city of Guate^ mala, advertising rate, 366. Diario del Salvador, San Salvador, ad- vertising rate, 366. Diario de Panama, Panama, advertis- ing rate, 366. DTaz, R. Camilo, Charge d'Affaires of Honduras, paper, 36, 171-174. - Diaz Yrizar, Dr. Mario, Director In- ternational Trade Work Bureau in Havana, mentioned, 51, 63, paper, 59, 281-283. Dickinson, W. N. remarks, 43, 69. Dictionary, commercial, 330. Director General of the Pan American Union, (see Barrett, John). District of Colombia, (see Washing- ton, D. C). Dodge Idea, 382. Dominican Republic: agriculture, 152, 153; capital, need of, 153; coloniza- tion, 155; commerce, 152, 153, 399- 401, conditions, 153-155; communica- tion, means of, 154; consular char- ges, 288; cotton, 154; credits, 152; diagram showing foreign trade, 110; exports, 152, 399-401; fruits, 153, 154; ice and electric plants, need of, 155; imports, 399-401; investments, 153; labor problem, 154, 155; lands, 154; parcel post, 277, racial elements, 264; roads, 154; shipping, 152; sugar, 153, 154; taxation, 154; trade balance against, 26; trading post, 155; tobacco, 152, 153; woods, 153. Domfnici, Dr. Santos A., Minister of Venezuela, 41; member sub-commit- tee on arrangements, 1. Doubleday, Page and Company, 74. Dun and Company, R. G., 62, 256. Dunn, Dr. W. E., paper, 82, 376-377. Dunne, William Louis, paper, 33, 334. Du Pont News, 382. Dupuis, Profe'ssor N. F., 272. Duval, George L., address, 47, 229-232. Dyes, 26. E Earle, Rear Admiral, 272. Ecuador: agricultural products, 156; American capital, opportunities for, 157; commerce, 399-401; commercial 4S9 Ecuador — Continued : map, 29; consular charges, 288; cur- rency and exchange, 267; customs tariff, 292; diagram showing foreign trade, 120; exports, 399-401; invest- ments, 156; imports, 399-401; min- ing, 156; oil deposits, 156; parcel post, 276, 278; President's message to Conference, 5; sanitation, 156; shipping, 156; yellow fever hospital, closed, 156. Educational auxiliaries to commerce: Chilean commercial and industrial education, 135-137; commercial edu- cation, 135-137, 370-373, 378-381; com- mercial schools and courses, 369 ; cul- tural element valuable in trade, 376, 377; education in relation to trade, 368-370; exchange of students and professors, 2, 3, 83, 369, 378-380; for- eign service, training for, 374, 375; knowledge of history, customs, etc., necessary, 368; language study, administrative defects, 377, 378; Library of Pan American Union, 384- 386; opportunities for young men in Latin America, 381-384; positions for trained men, 381-384; Pan American commerce as a career, 380, 381; vo- cational education, 369-373. El Comercio, Lima, advertising rates, 366. 'Ei Comercio, Managua, advertising rates, 366. El Comercio, Quito, advertising rates, 366. El Dia, Montevideo, advertising rates, 366. El Diario, Asuncion, advertising rates, 366. El Diaro de la Manna, Habana, 58. El Mercuric of Santiago de Valparaiso, 33, 129, 348; advertising rates, 366. El Nuevo Tiempo, Bogota, advertising rates, 366. El Tiempo, La Paz, advertising rates, 366. El Universal, Caracas, advertising rates, 366. 'El Universal, Mexico, advertising rates, 366. Electric Storage Battery Company, 283. Ellzalde, Rafael H., Minister of Ecua- dor, member sub-committee on ar- rangements, 1. Emeralds, 141. Engineering Aids to Commerce: com- mon Spanish technical vocabulary needed, 331-333; irrigation, 320-322; Latin American engineers, 11; Pan American engineers, 333, 334; pio- neering spirit of engineers, 333-334 (see also Irrigation, Railroads, Roads, Sanitation, Waterways). Engine Builders' Association of the United States, 272. England, (see Great Britain). Ericsson Manufacturing Company, 271. 'Escobar, Francisco, Consul General of Colombia in New York, paper by, 34, 138. Estrada Cabrera, Manuel, President of Guatemala, 5, 162, 154. Etiiics, commercial, 239-243. Europe: Argentine loans to, 96; ex- change, 309; Pan America as a fac- tor in rehabilitation of, 299; present situation, 298-300. Evans, James W., 272. Exchange of professors and students, 23, 83, 369, 378-380. Exchange: European, 309; Latin Amer- ican rates of, 266, 267; relation of to shipping, 232; stabilizing of, 304; sterling's predominance, 232 (see also Currency, and names of respec- tive countries). 'Exhibition of Latin American products In New York proposed, 177. Export and Import Combinations, (see Webb-Pomerene Law). Exporting business: direct, 262; infor- mation for fixing retail prices, 53; licensing of firms, 52; organization and management of export depart- ments, 246 (see also Trading Methods and names of respective countries). Farming (see Agriculture). Famam, Henri, 235. Farquhar, A. B., remarks, 57. Farquhar, Percival, paper, 68, 311-313. Farrell, James A., 375. Federal Board for Vocational Educa- tion, 374, 375. Federal Trade Commission, 52, 248, 250; Chairman (see Colver, W. B.). Ferguson, Homer L., President, Cham- ber of Commerce of United States, address, 10-12. Films, (see Motion Pictures). Finances: .Costa Rica, 144, 145; Cuba, 151; Pan American cooperation, 65 Pan American situation, 97, 98 Paraguay, 192-194; Uruguay, 206 Venezuela, 214, 215; U. S. help, 97, 98 (see also Financing Trade and names of respective countries). Financial Conference, First Pan Amer- ican, 63, 211, 390. Financial Conference, Second Pan American: call, 63; subjects that should be taken up, 202. 460 SECOND PAN AMERICAN COMMERCIAL CONFERENCE Financing trade: Europe's need of Pan American help, 298-300; finan- cial cooperation, 300-302; invest- ments in Latin America, 302-306; reciprocity, 306, 307; suretyship, SOT- SOS (see also Banks and Banking, Currency, Exchange, Finances). Firms represented in Conference, list of, 405-419. Fisk Rubber Company, 283. Foodstuffs, promotion of exports of to Latin America, 97. Foreign and Domestic Commerce, Bu- reau of: information by, 244, 245; publications of, 217; thanks to oflS- cials of, 87, 88. Foreign Bond and Share Corporation, 306. Foreign Service, training for, 81, 82, 374, 375. Foreign Trade Convention, 226. Forest Service, Madison Laboratory, packing experiments, 76. Forests: Brazil, 123; Colombia, 141; (Dominican Eepublic, 153, 154; Hon- duras, 172; Nicaragua, 179; Panama, 182; Paraguay, 187. Foreword, by Director General Bar- rett, ix. France: investments in Latin Amer- ica, 94, 303; tin imports from Bo- livia, 104. Free ports, 47, 48, 226, 227. Freight rates, 229, 233, 234; (see also Shipping) . Furniture Association of America, 272. G General Drafting Company, 55. Georgetown University, Foreign Serv- ice School, 81, 82, 373. German language, replaced by Span- ish, 369. Germany: Argentine trade, 93; effect of downfall of, in commerce, 201; Investments in Latin America, 93, 303; share of in Latin American trade, 392; trading methods of, 24, 103, 377; United States to replace, 97. Gibson, Carlos, Secretary, Peruvian Embassy, paper by, 195-199. . Gillett, Frederick H^, Speaker, House of Representatives, address by, 9, 10. Gil, Enrique, paper, 283-285; remarks, 14, 58. Glass, Carter, Secretary of Treasury, Greetings to Conference, 63. GIfdden, Captain Charles J., paper, 48, 236, 237. Goethals, General, 236. Goiar, death rate, 344. Gold Clearance Fund Treaty, 64. Goldsmith, Dr. Peter H., address, 76. Gomez Rouhaud, Pedro, paper, 36, 178. Gondra, Manuel, Minister of Paraguay, address, 37; mentioned, 256; paper, 184-194. Gonzales, Vicente, paper, 62, 287-292; remarks, 73. Good will, value of protection, 283. Goodyear Rubber Company, 183. Gorgas, Major General, mentioned, 344. Gottschalk,^A. L. Moreau, 124. Governing Board of the Pan American Union, (See Pan American Union). Grace and Company, W. R., 21, 228, 271. Grace Log, 382. Graham, W. B., remarks, 37-38. Great Britain: commerce with Argen- tina, 93; foodstuffs from United States, 27; metric system, movement in favor of, 267, 268; investments in Latin America, 92, 303; tin imports from Bolivia, 104. Green, Philliip L., paper, 380-381. Greer, D. M., 227. Griswold, Mrs. Florence, ,83. Guaranty News, 382. Guatemala: agriculture, 163; building in, 163; climate, 161; coffee, 158; commerce, 158-162; 399-401; commer- cial map, 28; communication, means of, 161, 162; consular charges, 288; consuls in United States, 162; cred- its, 161, 164, 165; currency and ex- change, 366; diagram of foreign trade, 130; exports, 158, 159, 399-401; Guatemala city, earthquakes, 163, 164; hospitality of people and gov- ernment of, 162; imports, 158, 159, 399-401: international exposition of 1897, 172; new enterprises in, 162; President's message to Conference, 5; packing of goods for, 161; parcel post, 276, 277; railroads, 162; San Felipe-Quezaltenango line, proposed, 162-164; selling methods, right, 161; shipping, 161; trading in, 164, 165; travelling, 161, 164; travelling sales- men, 159, 161, 164; water power, 162- 164; water supply, 163; waterways, 164. Guayaquil, death rate, 344. Gutierrez Guerra, Jose, President of Bolivia, greetings to Conference, 6. Gutierrez, Jose Manuel, Bolivian Con- sul General in New York, paper, 102-111. H Haiti: agriculture, 168; climate, 168; cocoa, 169; coffee, 168, 169; com- merce, 168, 169, 399-401; consular charges, 288; cotton, 168, 169; cur- rency and exchange, 267; customs and revenues, 169; diagram of for- H aiti — Continued : eign trade, 140; exports, 168, 399-401; historical data, 166-168; imports, 168, 399-401; investments, 167, 168; par- cel post, 277; revolutions, 168; sugar, 169. Haitian American Corporation, 169. Halsey, F. A,, Commissioner, American Institute of Weights and Measures, paper by, 54, 270-274. Harper, R. N., President Washington Chamber of Commerce, address by, 13, 14. ^art, Schaffner and IVIarx, 283. Hilgard, J. E., 272. Havana, death rate; trade mark bu- reau at, 60, 61. Harvard School of Tropical Medicine, 343. Harvard University: commercial courses, 373; Latin American course, 381; Portuguese courses, 381. Havens, Verne L., paper by, 71, 331- 333; remarks, 15, 39, 71, 73. Hawker, Harry, 235. Hayes, Willet N., 272. Hazen, H. A., 272. Health, (see Sanitation). Heegstra, H. W., remarks by, 46. Heinz, E. N., remarks, 53. Hepburn, R. H., remarks by — Hernandez, Nicolas, paper, 295-297. Herschel, Sir John, 272. High Commission, (see International High Commission). Hill, James J., 312. Hill Publishing Company, 271. Highways, (see Roads). Hoffman, Frederick L., paper, 76, 342- 344. Honduras: agricultural colleges, 173; agriculture, 175; banks and banking, 171; bureaus of information, 171; Chilean products in, 172; coastwise transportation, 173; commerce, 171, 399-401; commercial map, 28; com- mercial travellers, 172; consular charges, 288; credits, 172; currency and exchange, 171, 266; diagram showing foreign trade of, 150; ex- ports, 399-401; exports ' to United States during war, 172; flour im- ports, 172; forests, 173; geography, 171; imports, 399-401; industries, 171; livestock, 173; mining, 174; par- cel post, 275-277; ports, 174; rail- roads, 174; reciprocity treaty with Salvador, 204, 205; shipping, 172, 173; sugar, 173; tobacco, 172; water- ways, 173; wheat, 173. Hondurean Navigation and Transpor- tation Company, 173. Hoover, Orton, 235. Horrison, H. S., remarks, 59. EX 461 Houston, Herbert S., paper, 346-350; remarks, 74, 75. Howard, A. B., remarks, ^6, 57. Howard, Roy, 348. Hoyos, F. P. de., remarks, 68-69. Humboldt, Baron von, 175, 202. Humboldt Gold Placers Company, 199. Hurley, Edward N., Chairman, United States Shipping Board, address, 43 223-225; mentioned, 87, 228, 256; re- marks, 43-46. Hurtler, Henry, remarks, 39. Hygiene, (see Sanitation). Illinois Manufacturers' Association 43. Illinois, University of, Latin American History courses, 381. Imbrie and Company, 101. Immigration: Cuba, 151; Venezuela, 211. Imperial Tobacco Company, 283^' Imports, (see names of respective countries). Inambari Dredging Company, 199. Inca Gold Company, 199. Indians of Latin America, 263, 265. Industrial journals, how they serve commerce, 351-353. Industrial reorganization, 97. Industries, (see names of respective countries). Information, suppression of faUe, 76. Ingeneria International, 331. Institute of Makers of Explosives, 267. Integrity, (see Business Ethics). Intelligence and publicity, commercial: advertising literature for Latin America, 363-365; advertising rates in Latin America, 368, 369; Asso- ciated Press, work of, 345; 346; Busi- ness Journal, 382; cable communica- tion with Latin America, 353-355; cable news to and from Latin Amer- ica, 95, 96, 350-351; committee of journalists, 348; Latin America in the American press, 355, 356; Latin American newspapers, 365-367; news service in Latin America, 95, 96; Pan American journalism as torch of progress, 346, 350; Pan American publications, 360-363; motion pic- tures for advertising, 356-359; Span- ish press in United States, 355, 356; vigilance committee on iiiformation, proposed, 347 (see also advertising). Inter-Allied Conference, 268. International Health Board of Rocke- feller Foundation, 343, 344. International High Commission, 11 63, 64, 211, 212, 282, 390, 391. 462 SECOND PAN AMERICAN COMMERCIAL CONFERENCE International Products Company, 38, 188. Internationai Trade Mark Bureau of Havana, 61, 63, 281; Director of (see Diaz Yrlzar). Investments: American capital in Latin America, 25, 97; Argentina, 92-94; Boli'cia, 7, 8, 115; Bolivian securities, 101; Brazil, 117, 125, 126; British in Argentina, 93; Chile, 129; Colombia, 139-143 ; Dominican Repub- lic, 153, 154; Ecuador,' 156; foreign in Latin America, 302-306; informa- tion for making, 349; government loans, 304, 305; Haiti, 167, 168; Latin America, 25, 302-306, 309, 310; Peru, 20, 21, 198, 202, 203; private enter- prises, 304, 305; Rio de Janeiro bonds, oversubscribed in United States, 27; Venezuela, 212, 214, 222 (see also Financing Trade, and names of respective countries). Invoices, (see Consular Invoices). Ipecac, 141. Irrigation, Bolivia, 113; Latin Amer- ica, 320-322; Peru, 20, 195. Irving National Bank, 269 Ivory nuts, Panama, 182. Jackson, John, 115. Japan, tendency of expansion, 201. Jobbers, 243, 244. Jolinson, Dr. S. M., message from Gov- ernor of New Mexico; paper, 335- 336; remarks by, 53. Jones, Dr. Grosvenor NI., paper by, 46, 227-229. Journal de Commercio of Rio de Ja- neiro, 348, 367; advertising rates, 366. Journalism, (see Intelligence and Pub- licity). K Keith, John IVIeiggs, paper by, 35, 144. Kent, Dean Wm., 272. Kretz, Dr. Walter