January i, 1910.] 



THE INDIA RUBBER WORLD 



133 



American Trade with the Amazon. 



TO the Editor of The India Rubber World: My interest 

 has been attracted lately by a number of articles in the 

 New York newspapers on the subject of trade with South 

 America, and as this is a matter which doubtless appeals to many 

 of your readers, I venture to offer some suggestions. It seems 

 appropriate that your journal should give space to such ques- 

 tions, since Brazil is the source of perhaps 60 per cent, of all 

 the rubber produced in the world. My own views are based 

 upon an experience of more than twenty years spent in Brazil 

 as traveling salesman, commercial salesman, and journalist, to- 

 gether with an acquaintance meanwhile, and before, in the 

 United States and Europe. 



It may be of interest first to consider the volume of the 

 commerce of Brazil, introducing for that purpose statistics from 

 an official source. The year chosen is 1906, which is the latest 

 date for which complete figures are just now available: 



EXPORTS. 



To — - Amazon and Para. All Brazil. 



United States £8,780,802 £18,627,520 



Great Britain 5,158,973 8,544,904 



Germany 1,470,362 9,341.357 



France 1,881,504 6,507,470 



Italy 510,118 



Portugal 312,755 



Other Countries 961,483 9,215,356 



Total £18,253,124 £53,059,480 



IMPORTS. 



Great Britain £1,480,344 £9,294,707 



Germany 987,715 4,873,140 



France 474,103 3,057,305 



United States 363,456 3,805,128 



Portugal 286,068 2,174,690 



Italy 79,098 1,094,826 



Other countries 280,076 8,904,245 



Total £3,950,860 £33,204,041 



These figures show that the United States is importing from 

 Brazil yearly goods for which she pays £18,627,520, while ex- 

 porting to that country merchandise, the returns of which only 

 net £3,805,123. In the Amazon valley the difference is still more 

 noticeable. When this country bought in 1906 $42,674,997 

 (gold) worth of merchandise, principally rubber, there was the 

 insignificant return of $1,766,496 for goods sold there. 



The question naturally arises, Why does the United States 

 sell so little in Brazil? Is not the American manufacturer able 

 to compete with the European market, the trade of which is so 

 large in Brazil? 



Among the many causes of the failure of American trade in 

 Brazil, I can, from experience, point out the principal ones, 

 which are : 



The lack of American transportation ; 



The banking facilities ; 



The untrained salesmen ; 



The use of the Spanish language. 



Transportation. 



The freight charges on many articles imported into Brazil, 

 and especially at Para and Manaos, are much less from Europe 

 than from the United States. 



The trip from Liverpool to Para, for instance, is made in 21 

 days. The same steamer makes the trip from New York to Para 

 in 14 days. Notwithstanding the fact that the voyage is shorter, 

 the charges on freight from America are 30 per cent, higher 

 than those of Europe. 



Many articles, such as typewriters, phonographs, electrical sup- 

 plies, etc., although having their origin in America, are imported 

 to Brazil from Europe. For this there is a definite reason. 



The Brazilian government even attempted to aid the Amer- 

 ican commerce by making a reduction of 30 per cent, in the 

 duties on many articles made in America. But this was to no 

 avail, since the discount on duty did not cover the high freight 

 charge on the goods purchased from the United States. 



Not only is this detrimental, but there actually is a lack of 

 navigating companies to carry on the American trade in Brazil. 

 Only three regular steamship lines are running between here 

 and Brazil : Lamport & Holt, the Booth Co., and Prince Line, 

 and they are European companies. Since these ships do not 

 have sufficient accommodation, and since their speed does not 

 exceed 12 knots an hour, they could not supply a large demand 

 for transportation to Brazil. 



The service on board of these steamers could be much im- 

 proved, and the time between sailings is fifteen days. On the 

 other hand, the steamers from Europe, besides having good ac- 

 commodations for passengers, appear in Brazil very often. 



Banking Facilities. 



The American manufacturers and traders are giving away 

 over $1,000,000 yearly to the British banking concerns in Brazil. 

 The following operations carried on by the foreign banks in 

 Brazil during 1906 will corroborate my assertion : 



THE LONDON AND RIVER PLATE BANK, LIMITED. 



[Head office in London; branches and agencies all over Brazil.] 

 Dividends. 

 1895 18% 



1896 20% 



1897 20% 



189S 20<Tr 



1899 20% 



1900 20% 



1901. 

 1902. 

 1903. 

 1904. 

 1905. 

 I906. 



.18% 

 .18% 



• 19% 

 .20% 

 .20% 



• 20% 



Liabilities — September 30, 1907. 



Capital paid up £1 ,200,000 



Reserve fund 1,100,000 



Acceptances — Account branch 2,570,155 



Acceptances — Customers drafts under merchandise 



credits 836,729 



Bills advised, drafts in transit 1,226,015 



18,052,388 



31.585 



2,184,941 



644.398 



72,013 



303.747 



Current accounts and deposits. 



Montevideo branch 



Bills for collection 



Buenos Aires Clearing Bank. 



Rebate on bills not due 



Profit and loss 



£28,221, 97r 



ASSETS — September 30, 1909. 



Cash on hand, at bankers £6,571,527 



Cash on hand. Clearing Bank 644,398 



Bills discounted, securities 18,650,123 



Bills for collection 2,184,941 



Bank premises 170,982 £28,221,971 



Gross profit, in 1906 £622,998 



Net profit 331,637 



THE LONDON AND BRAZILIAN BANK, LIMITED. 



Capital £750,000 



Reserve fund 698,000 



Gross profit 246,128 



Net profit 122,071 



THE BRITISH BANK OF SOUTH AMERICA, LIMITED. 



Caoital £500,000 



Reserve fund 450,959 



Gross profit 236,985 



Net profit 150,291 



BRASILIANISCHE BANK FUER DEUTSCHLAND. 



Capital Marks, 10,000,000 



Reserve fund 2.341,980 



Gross profit 3.300,693 



Net profit 1,709,819 



These official statements serve to show that the four banks, 



operating only with £2,950,000 of capital, are clearing yearly, as 



