Selling Latin America: A Problem in International Salesmanship. What to Sell and How to Sell It

Part 3

Chapter 33,853 wordsPublic domain

Tucuman has been the center of the sugar industry, practically all of which is consumed in the country, 43 refineries and plants being devoted to this business. The grapes grown at the foot of the eastern slopes of the Andes, near and around Mendoza, yield 500,000,000 quarts of wine yearly, most all being for internal consumption. Owing to the reversal of seasons here, crops are harvested when ours are being sown.

Recently dairying has developed to a remarkable extent, over 1300 creameries and factories being devoted to the manufacture of butter and cheese, doing a gross business of nearly $9,000,000. Much butter and cheese are shipped to England, Brazil and South Africa. For the first time in its history, butter was exported to the United States last year.

Flour milling was established in the Argentine in the 16th century. Prior to this Chilean flour supplied the demands for this article. To-day in addition to providing sufficient for its own requirements, Argentine ships much of its flour to Brazil, Chile and Europe and has about 800 flour mills in operation, representing an investment of approximately $14,000,000.

From the days of the early Spaniards stock-raising has flourished and will always be one of the chief industries of the land. Not only the Government but individuals as well realize this and co-operate with each other for the purpose of producing the best strains of all breeds of cattle.

There are many “refrigerificos” or cold-storage plants and abattoirs throughout the land and for years Europe received practically all of Argentine’s animal products, her exports in this line alone being approximately $350,000,000 in 1914. Due to the fact that these establishments were operated by British capital, England naturally took most of this meat. The larger American packing-houses have now entered the trade with the double purpose of supplying both their European and American customers from this field and direct refrigerator ships now run from the River Plate to New York City with cargoes of Argentine beef and mutton. The last census showed 30,000,000 beef cattle; 9,000,000 horses; 500,000 mules; 300,000 asses; 90,000,000 sheep; 4,000,000 goats and 3,000,000 pigs.

Nature seems content in having blessed this country with fertile pampas and agricultural lands, consequently there are comparatively few minerals within its territory. There are however some veins of gold, silver, copper and wolfram. Petroleum has recently been discovered, but not in large quantities. There is no coal in the Argentine, but in some sections bogs of peat cover extensive areas and await development.

To the north and in the interior are forests of valuable woods, there being over thirty-three species of commercial value. Quebracho wood is found in the provinces of Santa Fe, Santiago del Estero and Corrientes. It is very hard, impervious to moisture and will not rot. Due to these admirable qualities it was formerly used for sleepers for railways but now owing to the fact that it is excessively rich in tannin it is used almost exclusively for the purpose of curing leather. Formerly it was exported in large logs to Europe or to the States and the tanning extracts expressed, but to-day there are many factories in the districts where the wood is grown, devoted to obtaining the tannin directly, thereby materially reducing the cost of the article. Inasmuch as hides and quebracho are products of the Argentine it would seem that the tanning of leather would under proper management develop into a large industry here. The export of tannin for 1914 was over $11,000,000.

Outside of the industries referred to and a few breweries, cigar factories, and apparel factories, wherein goods for local consumption are produced, there is no general manufacturing in the Argentine.

No other country of Latin America is as well provided with railways as the Argentine, nor with as regular and superior access to Europe and the States and all parts of the world. More than fifty steamship lines arrive and depart regularly from the various Argentine ports, all the seafaring nations of the earth being represented. In 1852, one observer counted over 600 vessels in the harbor of Buenos Aires flying the American flag or more than double the number of all the other nations combined. To-day but few are to be seen in the vast shipping of this busy port.

The Argentine Republic stands ninth among the world’s nations in the length of her railways, having about 22,000 miles of track. Many lines are in process of construction or contemplated, the public and the government both realizing that a complete network of railways leading to the ports accelerate the moving of crops and cattle and are absolutely essential to its prosperity. Buenos Aires quite naturally is the principal terminal of most roads, while Santa Fe, Rosario, Bahia Blanca and La Plata are rapidly coming to the front as shipping centers and are providing appropriate facilities for handling trade. It has been said that every railway in the country is extending its lines more and more into the interior, and railway journeys to Brazil, Paraguay and Bolivia as well as Chile are now possible. It may be interesting to note that the longest stretch of straight track known to railroad builders is to be found in the Argentine, where the rails run a distance of 175 miles without a curve of any kind.

Wagon roads outside of the larger cities are poor and in bad condition, and much is needed to be done in this respect.

There are many weekly sailings of the most modern and swift passenger ships to Europe, one Italian line making the voyage from Buenos Aires to Genoa in fifteen days. It is also possible to go via Hamburg or England to New York in better ships for practically the same money and in less time than is taken by ships engaged in the direct run from Buenos Aires to New York. The Lamport & Holt Line (British) runs directly from New York to Buenos Aires, with weekly sailings, carrying freight and passengers. The Prince Line (British) and the Barber Line (American but flying the British flag), the Norton Line (British), the American Rio Plate Line (American) leave New York twice a month for Argentine ports. The Houston Line (British) from Boston and New York and the New York and South American Line sail monthly from New York for River Plate ports. The Munson Line (American) from Mobile, Alabama, sends two ships monthly to Buenos Aires. There are many tramp ships from American ports in this trade also.

The docks and facilities for handling goods in Buenos Aires are second to none in the world and are modeled after the famous Liverpool system, having cost over $50,000,000. Steamers unload cargoes directly into the government custom warehouses, on the other side of which are networks of railway tracks from which they can be forwarded to the interior. Each of the large cement-sided canals or basins for the ship traffic is provided with locks or water gates, while the masonry warehouses, buildings and grain elevators extend for miles along the city water front. Yet the business of the port has grown so that there is much congestion, especially at certain seasons of the year and plans are being considered for doubling its present facilities.

Much of the impetus in trade circles in this land is due to the presence of the English, Germans and Italians who control the banking, transportation and commercial life of the country. Both the Briton and the Teuton have large sums invested in all kinds of enterprises, the total being estimated at $2,000,000,000. The Italian has developed into the small shopkeeper and farmer. In Buenos Aires alone there are two daily papers printed in English, which serves to give some idea of the extent of the English speaking population in this city. There are also daily papers published in Italian, German, French and Arabic.

Practically all the nations of Europe are represented in the banking business, the United States being the last to enter the field. The English are the strongest and the Germans next.

Argentine is supposed to be on a gold exchange basis, the gold _peso_ being worth one hundred _centavos_, or in our money 96.5 cents. The gold _peso_ is designated by the sign $C/L, the symbol C/L meaning _curso legal_, or legal tender. This is practically an imaginary coin, and the money one sees is paper currency, the paper _peso_ being worth 44 per cent. of its face value, or 42.46 cents in United States gold. This is represented in the following manner $M/N, meaning _moneda nacional_ or national money. This paper currency fluctuates slightly each day, being governed by the market conditions. The abbreviations O/S, C/L, and M/N are placed before the dollar or _peso_ mark, as for example O/S $500 or may follow it, as, for instance, $500 M/N.

The Argentine has long been noted for its unfavorable fees charged travellers, each province having a separate tariff, varying according to the commodity one may be selling. They are subject to such changes on short notice that it is useless to give them here, besides the subject has been dealt with elsewhere in this book. Before doing business it is wise to give this matter careful consideration. No duty is charged on samples.

The following cities should be visited:

_Population_ Buenos Aires 1,700,000 Rosario 300,000 Cordoba 120,000 La Plata 100,000 Tucuman 80,000 Bahia Blanca 75,000 Mendoza 65,000 Santa Fe 50,000 Salta 40,000 Parana 37,000 Corrientes 30,000 San Juan 16,000 San Luis 15,000

The Argentine exported goods to the value of $468,999,410 in 1913, and during the same time imported goods to the extent of $408,711,966, of which amount less than 8 per cent. came from the United States. England controlled the bulk of the trade with Germany second and France third.

The principal exports are meats and meat products, agricultural products such as wheat, corn, oats, barley, linseed, hay, alfalfa, woods and dye woods, live animals, wool, hides, skins, butter and cheese. It imports foodstuffs, textiles, iron, steel, railway supplies and rolling stock, agricultural implements and machinery, wagons, carriages, automobiles and automobile supplies, electrical apparatus, glass, china, ready-made clothes, hats, shoes, toilet articles, drugs and chemicals, paints and varnish, stockings and socks, silks, kitchen-utensils, enamelled ware, tools, vegetables, fruits, eggs, oils, greases, and coal.

IV URUGUAY

The first European who set foot on Uruguayan soil was the man who discovered the Rio de la Plate—Juan Diaz de Solis. This was in 1508. He and his associates were immediately attacked by the Charruca Indians, who annihilated the party. Later on Portuguese settlers from Brazil attempted to colonize this land, but they met with repulses, as did also the Spanish colonists who followed them. As a result of the invasion of this territory by Portuguese and Spanish it was claimed by both these countries and became a bone of contention between them for more than two hundred years. The Portuguese colonists were finally routed bodily and their city of Montevideo, founded in 1724, came under control of the Spanish Viceroy. Portugal still persisted in claiming this province and when Dom Pedro made an Empire of Brazil, he also attempted to exercise jurisdiction over Uruguay as well. This ultimately resulted in a war between Brazil and Argentine, in which the Uruguayans rallied to the aid of the Argentinians, defeating the Brazilians. A treaty of peace in which the mediation of England was asked, was signed August 27, 1828, giving Uruguay its independence.

The present government is based upon that of the United States and comprises executives in the persons of a President and a Vice-President, elected for four years, and a legislative body, consisting of a House of Representatives and a Senate.

Uruguay occupies an area of 72,210 square miles, or is about as large as all of the New England States. It is virtually an extensive undulating plain, having in its northern section a series of mountain ranges but few of which are higher than 2000 feet. It is bounded on the east by the Atlantic Ocean and on the north by Brazil, the Rio Cuareim flowing between the two countries. The Uruguay, dividing Argentine and Uruguay, forms its western boundary while the wide mouth of the Rio de la Plate may be called its southern boundary line.

The climate is extremely temperate and healthful—so much so in fact that it is rapidly developing into a summer resort for Chileans, Argentinians and Brazilians; many of the wealthiest of these nationalities have established seashore homes within its boundaries, especially outside of Montevideo. Extreme summer heat such as one finds in Buenos Aires, is never encountered here, although there are days in winter when it is particularly cold. Snow occasionally falls.

Uruguay has a population of 1,500,000, its people being among the best in Latin America. As in Argentine, the Indians are comparatively few and to be found in remote districts only. There are practically no negroes and mixed breeds. Owing to the influx of English, Italian, and Swiss colonists, the standard of the population is continually rising and its geographical position, salubrious climate and vast areas of tillable land will attract more and more desirable settlers to its boundary. Immigration is encouraged along the most modern and progressive lines.

Uruguay is fortunate in having many navigable rivers, the chief of which are the Rio de la Plate and the Uruguay, giving a total of over 700 miles of water deep enough for ocean-going vessels. One river alone—the Uruguay—has ten ports open for interoceanic trade, the cities on this river being Carmelo, Neuva Palmira, Soriano, Fray Bentos, Neuva Berlin, Casa Blanca, Pysandu, Neuva Pysandu, Salto and Santa Rosa. Mercedes is a large city, on the Rio Negro, and is used as a port of call for ocean-going vessels. There is also Lake Merim on the borders of Brazil on which run small launches.

Uruguay has comparatively few railroad systems and only 1600 miles of railways. There are many projects for railway development however and the completion of the mileage planned will rapidly bring the country to the fore. American capital is now being interested in this field.

While there are some minerals to be found in the mountainous sections, still the country will always be a pastoral one. Mica, gold, precious stones and petroleum are known to exist, yet comparatively little, if anything, has been done along these lines.

Of her 45,000,000 acres of land, less than 5 per cent. is devoted to agriculture, owing to lack of population. There are about 1,700,000 acres of virgin forest lands and over 40,000,000 acres devoted to grazing cattle and sheep.

Wheat is the chief cereal grown, with corn, barley, oats and linseed in the order named. Tobacco has been tried with favorable results.

The raising of cattle of all kinds and the maintenance of slaughter-houses and packing establishments for the purpose of supplying Europe with meat forms the largest industry. One plant alone at Fray Bentos—owned by the Liebig Company and where the extract of that name is made,—kills over 3,000,000 head a year. Very naturally meat by-products are produced and exported in large quantities. Much frozen and tinned meat is exported. Some idea of the enormous size of the cattle industry here may be gained when we are told that at the present time Uruguay has over 9,000,000 cattle, 30,000,000 sheep, 800,000 hogs, 600,000 goats and 430,000 horses.

One of the leading industries is the shearing of wool, all of which is exported. The good climatic conditions, in connection with attention paid to breeding, have resulted in the production of a wool of superior length and texture and as a consequence wool-buyers from Europe are attracted to this market. In 1913 the amount exported reached the enormous sum of $35,875,975.

Despite the fact that Uruguay has no gold coin of its own, it is on a gold basis and its _peso_, or dollar, is worth almost four cents more than ours, or to be exact, $1.034. This is a decidedly unusual state of affairs for Latin America, and reflects favorably on the financial condition of the country.

There is much English capital invested here, and to a large extent trade is in the hands of Englishmen. Many German and Italian houses are represented and these nationalities are also becoming interested in local enterprises.

Uruguay exports wool, hides, horn, hair, meats and meat products, grease tallow, grain and cereals, the total amount expressed in figures for 1913 being $65,142,000.

In 1913 she imported goods to the value of $50,666,000, the leading items being foodstuffs, iron, steel, glass, china, wooden products, oils, chemicals, medicines, stationery, toilet articles, tobacco, textiles, shoes, hats, and silks.

While commercial travellers are supposed to pay a yearly license of $100, still this can be waived by making the proper connection with some local dealer or commission house.

The following cities should be visited:

_Population_ Montevideo 500,000 Pysandu 35,000 Mercedes 25,000 Salto 25,000 Fray Bentos 15,000 Rivera 10,000 Guadalupe 10,000 Minas 10,000 Florida 10,000 Colonia 10,000

Uruguay has from three to five steamships sailing weekly direct for Europe, or the United States.

All vessels leaving either Europe or the United States and calling at Buenos Aires touch at Montevideo the day before arriving at Buenos Aires, as well as on the return trip. Two night lines of comfortable steamers connect Buenos Aires and Montevideo, which are about 110 miles apart. Ample transoceanic and coastwise freight service is also provided.

V PARAGUAY

Due to the ambitions of one man—Carlos Antonio Lopez—a dictator of the worst type, with Napoleonic designs, Paraguay, one of the finest of South American countries, one with brilliant prospects and holding the greatest opportunities, is to-day the most backward and has the smallest population.

Paraguay was discovered by Sebastian Cabot in 1526. Following him came Juan de Ayolas and Domingo Irala, who in 1536 founded the city of Asuncion, now the capital of the republic. Up to 1810 it was a Spanish colony, being latterly governed by the Viceroy from the home country who resided in Buenos Aires. At that time it was called the Province of Paraguay. It declared its independence from the mother country in 1811, the Spanish Governor-General aiding in the movement. After trying various forms of government it became a republic in 1844, which form of government still exists, the executive power being vested in a President and Vice-President, with a legislative body composed of a Senate and Chamber of Deputies.

It is impossible in even briefly writing of this really wonderful country to refrain from some reference to the one man, Lopez, whose desire for power resulted in the almost total annihilation of a people. His arbitrary rule embroiled his nation in disputes with much of Europe and the United States, and resulted in a war with Uruguay, Brazil and Argentine. In addition to this internal strife developed in which assassins, murderers and executioners played their parts. When Lopez was finally killed and his power gone, Paraguay’s population, according to Dawson, the well-known historian, had decreased from a “1,300,000 to a little over 200,000, only about 29,000 being men and 90,000 children under fifteen years of age.” There were five women to one man. As a result of this devastation the country never has revived. Recent revolutions have set it back still further and whatever of good may come to this benighted land must be written in the future tense.

Paraguay is almost an inland country, having but one outlet to the sea in the Parana River. Its 196,000 square miles of territory is bounded on the north by Brazil and Bolivia; on the west and south by Argentine, and on the east by Argentine and Brazil. The Paraguay River runs directly through its territory from south to north dividing it into two sections, Western Paraguay, or the Chaco, and Eastern Paraguay. It is well watered with many small streams, while toward the north and east are mountain chains.

The climate of Paraguay is so equable that the country is sometimes called the “Sanitarium.” The two seasons are the rainy and the dry. It never snows in this land and flowers in great variety and a riot of color bloom constantly. The southern two-thirds are in the Temperate Zone, the northern one-third in the Tropic Zone.

The population is estimated at 800,000, over 100,000 of which are wild Indians, the remainder being largely of mixed blood, negro predominating. There have been some sporadic attempts to encourage immigration, which have not resulted in any great movement in this direction, owing to the instability of the government and the backward condition of the people as well as to the general isolation of the country.

Travel in Paraguay is most primitive. There are few roads and most of the commerce is carried by bullock carts on almost impassable trails or by pack train over narrow paths. But one railway, having a total length of about 250 miles, ekes out a homeopathic existence, running from Asuncion, the capital, to Ville Encarnacion. Many railways must be built to open the country. One can go by rail from Asuncion to Buenos Aires in two days, the trip requiring a ferry-age from Posadas to Ville Encarnacion. The Trans-Paraguayan Railway now in course of construction will do much to develop the country. Communication with the outside world via Montevideo or Buenos Aires is maintained by river steamers, requiring from five days to a week to make the trip to Asuncion, which is about 1100 miles from the Argentine capital.

From Asuncion it is possible to go into the interior or even to Brazil, on light-draft steamers, the Guyara Falls, 1300 miles above the capital, stopping navigation of the Parana River at this point.

The Paraguay River is navigable for vessels of twelve-foot draft to Asuncion and for smaller vessels 700 miles farther.

Most of the commerce of Paraguay is carried in lighters drawn by tugs, and these emissaries of trade are to be met on all the rivers and waterways of this country.

There are several lakes, navigable for small craft, but of no importance from a commercial standpoint.

While both the climate and the soil warrant one in stating that Paraguay is susceptible of high agricultural development, little has been done in this regard, outside of locally producing the few vegetables and fruits required for home consumption. Sugar-cane, tobacco, tropical fruits and cotton would thrive in this country. Each one of these staples has been successfully raised, the cotton being something like our own famous Sea Island brand.