Chapter V: Appendix: 377 (4)

Banking houses in close association with American financial institutions are numerous here and every modern facility in this connection is afforded. American capital is largely invested in various enterprises; England and Canada are also well represented here.

Commercial travellers pay no tax in Cuba, and samples are admitted duty free.

Travel is convenient and comfortable and the hotels fairly good, especially in the cities.

The following places should be visited:

_Population_
Havana 350,000
Matanzas 75,000
Cienfuegos 75,000
Camaqüey 70,000
Manzanillo. 56,000
Santiago 55,000
Pinar del Rio 53,000
Santa Clara 48,000
Guantanamo 45,000
Trinidad 31,000
Cardenas 30,000
Guanabacoa 27,000

Cuba may be reached by rail or water routes, it now being possible owing to an ocean ferry via Florida to land in Havana in the sleeper in which one left New York.

There are 22 steamers a week from the leading ports of the United States for Cuba, in addition to others regularly from Europe and Mexico. There are weekly ships from New York, Boston, New Orleans, Mobile and Galveston to Havana. There is also direct daily service between Tampa, Florida and Havana.

XV
SANTO DOMINGO

The Dominican Republic occupies the eastern and larger section of the island known as Santo Domingo or Haiti.

This island was discovered by Columbus on his first voyage December 6, 1492. The peaceable aborigines whom he found on landing were so abused under the Spanish rule, that by the year 1500 fully 90 per cent. had died and the colonists turned to Africa for slaves to work their estates, 4000 being brought here in 1517.

French, Dutch and English buccaneers made this island their rendezvous owing to its favorable location. France recognized them as constituting a state in 1630 and gave them the protection of the home government. In 1697 France secured control over the western half of the island, and in 1795 obtained by treaty the remaining portion.

In 1809 Spain and France were at war, and Spanish rule was again established on the island. The Spanish-speaking section of this territory declared its independence of Spain in 1821 and in 1822 the Haitians acquired control of the entire island, governing it until 1844, when as the result of a rebellion in 1846 Santo Domingo became independent, remaining so until 1861 when again fearing conquest she petitioned Spain to direct her destinies. Following a revolution in 1863, Spanish rule terminated in 1865, the country since being known as the Dominican Republic. Uprisings and revolutions followed each other and foreign debts accumulated to such an extent that European invasion was threatened. In 1907 the United States undertook to administer the affairs of the government through American officials, cancelling each year from the revenues of the country a portion of its foreign debt, using another portion for internal national improvements.

The present constitution provides for a President as an executive and a Senate and Chamber of Deputies for legislative purposes.

The island of Santo Domingo, or Haiti, is about 400 miles long and 160 wide, its shores possessing numerous deep-water bays and inlets. Four almost parallel mountain-ranges exist within its boundaries, one peak, Mt. Tina, being 10,300 feet in altitude. These mountains form an excellent watershed, resulting in many creeks and streams, but few navigable and those only for very light draft boats.

Along the coast and in the lowlands, the heat is extreme, Haiti being much warmer than Santo Domingo. The high lands of the interior and the plateaus between the mountains are pleasant and healthful. Continuous sea breezes add materially to the comfort of the inhabitants.

The Dominican Republic has an area of 19,325 square miles and a population of 673,611, mostly blacks or mulattoes. There is a small white foreign population, numbering perhaps 10,000.

There are 160 miles of railway, partially under government ownership, and 250 miles of railway privately owned and used in connection with the larger sugar estates.

There exist exceptional opportunities for cattle and goat raising. Lumbering of hard, dye and cabinet woods could be profitably developed. Gold is washed from the rivers in small quantities and some copper, iron and silver are found.

Cane is extensively grown throughout the island, the amount exported in 1912 being $5,841,357. Cocoa is largely raised, the crop last year yielding $4,248,724. Tobacco, coffee, beeswax, honey, bananas, lignum-vitae, dye woods, mahogany, gums, resins, hides and copra form the other leading items of its exports which in 1913 amounted to $12,385,248.

In the same period her imports were $8,217,898, consisting of cotton goods valued at $2,000,000, iron and steel, $1,400,000, meat and butter $660,000, flour $450,000, drugs $225,000, paper $125,000, and soap $100,000. Last year this country used 16,221,141 pounds of rice, 94.5 per cent. of which came from Germany, a land that does not grow a pound of this cereal.

The United States takes considerably more than 50 per cent. of this country’s exports, and ships it about 70 per cent. of its requirements, Germany ranking next, followed by England and France.

Santo Domingo has no currency of its own, but uses American money. An American bank in Santo Domingo City exists, being the only financial institution in the country, and affords every facility in monetary matters. Credits are fairly good and detailed information will be supplied by the bank.

Travelers pay no tax and samples are admitted duty free.

The chief cities are:

_Population_
Santo Domingo 30,000
Santiago 15,000
Puerto Plata 10,000
San Pedro de Macoris 7,000
Sanchez 5,000

The Clyde S. S. Company (American) maintains a semi-monthly service from New York touching all the ports of the Republic. There are many European lines calling at the various ports also.

XVI
HAITI

Much of the history of Haiti is associated with its neighbor, Santo Domingo, and need not be again told. After the French had established their government in this island they imported negroes from Africa as slaves. These revolted in 1791 and in 1801 declared their independence, finally expelling the French in 1804. This land has been the scene of much bloodshed and lacks stability in its government, as it always will until taken under the control of some strong power.

Its geography and climatic conditions are the same as those of Santo Domingo, its area of 10,200 square miles supporting a population estimated at 2,000,000, French or a “patois” being the language spoken. Perhaps 95 per cent. of its inhabitants are negroes, or have negro blood. The country is backward. But few attempts have been made to modernize it and it is to-day one of the most hopeless nations of this hemisphere. About 75 miles of railways are in operation. No navigable streams exist. There are no roads, travel in the interior being over trails. The natives are ignorant, uneducated and in some portions of the land are supposed to practice cannibalism. There are two seasons—a rainy and a dry—the rainy lasting from April to November.

Haiti’s chief products are coffee, 40,000 tons of which were exported last year, cocoa, dye woods and cabinet woods, medicinal gums, rubber, castor oil bean and bark for tanning. Her exports of $17,300,000 for 1913 were divided as follows:

France $8,500,000
Germany 6,400,000
United Kingdom 1,300,000
United States 1,100,000

while her imports for the same period amounted to $8,700,000, credited to the following nations:

United States $6,500,000
France 800,000
United Kingdom 630,000
Germany 530,000
Others 240,000

Her requirements are for flour, rice, foodstuffs, candles, oil, cotton goods, shoes, hats, and tools.

The country is retrograding and there is no inducement to capital to revive its exhausted financial condition.

The monetary system is in a hopeless tangle, and is on an inconvertible paper basis, a _gourde_ the unit of value, fluctuating from 20 to 24 cents, U. S. Gold. There has been some talk of placing its finances on a gold basis, but this is visionary. There is one bank—Banque Nationale de la Republique d’Haiti, financed by American money, but it has been closed by the government. No one can authoritatively state with certainty as to the outcome in consequence of this condition of affairs. Credits should be closely watched. Owing to the heavy national debt and the inability of the government to administer its affairs, it is quite possible that the United States will sooner or later be forced to play the rôle it is at present doing in Santo Domingo.

There is a tax for travellers but by arrangement with some of the petty municipal authorities the full sum need not be paid. Samples are supposed to be free.

Haiti may be reached from New York via the Clyde Line (American) which disembarks its passengers in Santo Domingo. Tramp steamers or coasting vessels may there be taken to Haitian ports, or one may go directly by the Royal Dutch West India Mail line sailing twice a month from New York.

The principal cities of Haiti are:

_Population_
Port au Prince 65,000
Jeremie 35,000
Cape Haitien 30,000
Aux Cayes 25,000
Mole St. Nicholas 12,000

XVII
PORTO RICO

Porto Rico was discovered by Columbus in 1493, and colonized by Ponce de Leon in 1509. Because the greater percentage of the population of the island speak Spanish and have the traits, desires and inclinations of that race, it may be briefly considered despite the fact that it has been an American possession since 1898. Within another 25 years practically all of its 1,120,000 inhabitants will be able to speak or understand English, which is now taught in all the schools, education being compulsory. A large portion of the population are negroes and mulattoes. There are also many Americans and Europeans.

The island is 100 miles long and 35 wide, containing 2,300,000 acres of which but 24 per cent. is under cultivation. It is extremely mountainous toward the interior, one peak reaching a height of 3700 feet, the lowland on which sugar is cultivated being along the coast. The climate is warm but equable and comfortable, the trade winds moderating any tendency toward excessive heat. Porto Rico is a land of continual summer, and maintains its extreme verdure owing to its rainfall which has an annual average of 77.30 inches.

Porto Rico has about 500 miles of steam railways, and nearly 1000 miles of excellent roads. There are no navigable rivers, but many good harbors.

Its government is under the control of the Insular Board of the United States War Department, a governor being appointed by the President of the United States. The Governor has as Council, six resident American officials, and six natives, who with a House of Delegates of 35 members, constitute the Legislative Assembly, the veto power being held by the Executive; legislation is subject to the final revision of the Congress of the United States. A Resident Commissioner to the United States having a seat in Congress is elected by the people every two years.

Since the yoke of Spain was cast off the island has progressed wonderfully under American management. In 1904 its exports amounted to $16,250,000 and had grown to the enormous sum of $43,000,000 in 1914, while its imports in 1904 were $13,000,000; they had increased in 10 years to $35,500,000. Its development and prosperity have been steadily upward. Owing to the fact that it has free trade with the United States, we do most of its business, last year taking $34,400,000 of its exports and sending it $31,750,000 of its imports.

Its chief exports are:

Sugar (400,000 tons) $28,000,000 Tobacco (170,000,000 cigars, 12,000,000 packs cigarettes) 5,000,000 Coffee (20,000 tons) 7,000,000 Fruits (oranges, pineapples, grape-fruit, cocoanuts) 3,000,000

Porto Rico is essentially an agricultural country and will remain so. Cattle can be raised. There are no mineral resources.

Its requirements are for foodstuffs, flour, meats, tools, fertilizer, oil, machinery, cement, structural iron, vegetables, dried fruits, and fish, cotton goods, shoes, wines and liquors, confectionery, butter, and toilet articles.

United States money is used exclusively, as are also our systems of weights and measures. Direct banking is done with the United States through nine banks in the island.

English is the official tongue, Spanish the popular language.

There are no travelers’ taxes and samples pay no duty.

The following cities are the most important:

_Cities_ _Population_
San Juan 50,000
Ponce 35,000
Mayaguez 17,000
Caguas 11,000
Arecibo 10,000
Fajardo 9,000
Yauco 8,500
Guayama 8,500
Humacao 7,000
Aguadilla 6,000
Cayey 5,000
Coamo 4,000

Thirteen lines of vessels connect this island with the United States, four going direct to New York and providing a semi-weekly mail service. There are also ships to Europe as well as the nearby islands.

XVIII
THE GUIANAS: BRITISH, DUTCH AND FRENCH

Most travelers ignore British, Dutch and French Guiana, assuming that climatic conditions are unfavorable and the small size of the population means no demand for goods. The fact is that they are not unhealthful, that their credit is good, their merchants reliable, their purchasing power in proportion to their inhabitants is excellent and especially the Dutch and British colonies are friendly to us and what we produce. They are well worth a visit, and spend annually in the United States jointly about $3,000,000. Furthermore, they are easily accessible from either Trinidad or Barbados.

British Guiana is by far the largest and most prosperous. This entire tract was at one time in the possession of Spain and was under its control until 1624. The Dutch in 1648, after the close of their war with Spain, and through one of their mercantile companies, obtained a trading port in what afterwards became known as Dutch Guiana. Following their move, the English under Sir Walter Raleigh, acquired their present possession, establishing a town now known as Surinam, the English afterwards giving a portion of this territory to the Dutch in exchange for their holdings in North America. About the same time the French established a colony at Cayenne, and later on came near being embroiled in a war with Brazil over the boundary line, which was finally amicably adjusted.

These three European colonies, the only ones by the way, in South America, British Guiana being the most westerly, French Guiana the eastern and Dutch Guiana between the others, have for their northern boundary the Atlantic Ocean. Venezuela is the western neighbor of British Guiana. Brazil touches each of these colonies as their southern border, also forming the western boundary of French Guiana.

The topography of all of these possessions is similar. Toward the interior are mountains whose watershed forms many small rivers and creeks flowing toward the Atlantic. Between the mountains and the ocean are broad fields or savannahs, millions of acres in extent, which gradually terminate in the low lands near the sea. In the highlands and toward the mountains of the interior the climate is spring-like, but it is always very warm along the coast, the temperature being about 80° Fahrenheit, the entire year. There is much rainfall—100 inches being the annual average.

British Guiana covers an area of 90,277 square miles, with a population of about 300,000, composed of about 160,000 coolies, imported by contract from India and under the supervision of the British government, the remainder being white, black and mixed breeds. The native Indians have never been counted owing to the inaccessible location of their settlements. The East Indians were brought for the purpose of working sugar plantations, labor being very scarce. There are also about 5000 Chinese.

Georgetown with 55,000 inhabitants is the capital, the other settlements being Essequibo and Berbice.

The exports which represent the country’s products were in 1913:

Sugar $5,250,000
Rum 1,000,000
Gold 1,400,000
Balata 800,000
Rice 500,000
Diamonds 80,000

Of this the United Kingdom took goods worth $9,300,000 and the United States but $125,000.

During the same period, the imports amounted to $7,750,000, England and her colonies supplying $5,545,000 and the United States $1,800,000.

This colony has about 100 miles of railway, its many rivers and creeks sufficing for its interior transportation.

No traveler’s license is required.

Banking is done through Canada and London; banks in these places having branches in Georgetown and selling exchange on New York. English or American money is used.

Sugar is the great crop here and rum, a byproduct from the sugar cane, the next largest. Cattle might be raised extensively. The forests are rich in cabinet woods. Cocoa, rice, bananas, rubber and cocoanuts could be more extensively grown. There are some gold and a few diamond mines in operation. This colony could be much more highly developed.

The business is almost entirely in the hands of the British, England selling about 65 per cent. of its requirements and the United States 25 per cent.

They import bags and sacks, boots and shoes, flour, corn meal, coal, drugs and medicines, vegetables, hardware, machinery, clothes, textiles, oils, wines and liquors, tobacco, cigars and cigarettes.

Georgetown is the only town to visit, and is best reached by either one of the several steamers sailing from Trinidad or Barbados.

Dutch Guiana, sometimes called Surinam, is 46,060 square miles in area, with a population of 87,500, mostly Indians, negroes and Javanese, who are brought out to work the canefields. The proportion of white is small and they are mostly merchants and government employes.

This country is susceptible of agricultural development, its products and requirements being the same as British Guiana. Paramaribo, with 40,000 inhabitants, is the capital and only town that will repay a visit. This colony is not very progressive, and its trade is decreasing. In 1912 its exports were $3,500,000, mostly sugar, with some cocoa, coffee, balata, gold, bananas and rum, of which Holland took $1,500,000 worth and the United States $900,000.

It imported goods to the value of $3,000,000, Holland supplying $1,700,000 and the United States $700,000.

There are opportunities here but for some reason the colony has been neglected, the capital, Paramaribo, having no modern conveniences, not even a water supply, although it is ideally located for sewerage and aqueducts.

Dutch money is in use, although American and English is accepted. Merchants maintain accounts in New York or Europe for their requirements. Credits are good. English is spoken by all business men.

The Royal Dutch West Indies Mail direct from New York has two sailings a month for this colony. It is also accessible from Trinidad, Curaçao, and Barbados.

French Guiana has 49,000 square miles of territory, with a population of about 13,500, some 8,500 of which are convicts, as this is a penal settlement. Capt. Dreyfus was confined here on Devil’s Island. This is the least developed and less promising of these colonies. There is little agriculture and less cattle raising. Whatever trade there is is controlled by France.

In 1912 the exports were:

Gold $2,000,000
Phosphate 55,000
Balata 20,000
Rosewood oil 46,000
Rosewood 19,000
Cocoa and hide 2,400,000

Most of this was shipped direct to the mother country.

Of the imports of $2,000,000, 70 per cent. came from France, our share being $300,000. It is doubtful if our trade here could be materially increased. Cayenne is the only town to visit, and may be best reached from Trinidad or from the French possession of Martinique or Guadaloupe. French money is in use and while dealers give drafts on Paris or London, most of them having business with New York, do so through some branch of the Credit Lyonnais.

No traveler’s fee is required. French is spoken.

All of these possessions are ruled by officials sent from the motherland for a term of years.

XIX
EUROPEAN POSSESSIONS IN THE WEST INDIES

Four European countries, England, France, Holland and Denmark, have possessions in the West Indies. They are readily accessible, cleanly, attractive, hospitable, and will repay a visit both for business and for pleasure. All of them are dependent on the outside world for their staples and food supplies, and to-day are receiving great attention at the hands of the Canadian merchant, who has in many instances supplanted us, especially in such necessities as flour, dried fish, butter, potatoes, onions, cheese and fruits. Their trade is well worth catering to, and much of it can be diverted into American channels. With the exception of Martinique and Guadeloupe, English is spoken universally, even in the Dutch and Danish islands.

The Dutch colony of Curaçao consists of the island of that name, and the adjacent islands of Bonaire, Aruba, St. Eustache, Saba and the southern part of St. Martin, the northern portion belonging to France. These islands are small and situated about 60 miles off the coast of Venezuela to the north, having a total area of 403 square miles, Curaçao being the largest, and about 30 miles long with an area of 210 square miles. They are mostly all of coral formation and cannot raise enough food for the sustenance of their 50,000 inhabitants, 30,000 of whom reside in Curaçao.

Wilhelmstadt with 25,000 is the capital and the residence of the Dutch Governor. It is well equipped for coaling and provisioning ships, being a free port, and as it is in the beaten path of travel from Europe to the Panama Canal its future seems bright.

The inhabitants of these islands are poor whites who have intermarried and a few blacks. Curaçao, however, is the home of many wealthy Jews, whose forefathers were banished from Portugal, these islands having formerly belonged to that country. They are all merchants or traders, owning coasting vessels that ply along the Latin American shores and the other islands. Their credit is good and they are thoroughly up-to-date in their business methods.

While Dutch money is used, American, English, French, German and other currency is received at the current rate of exchange. There are no government banks, but each merchant has credits in the United States or Europe and buys and sells exchange against it.

The total exports of these islands are less than $1,000,000 yearly, $300,000 representing coal brought from the United States and resold to steamers. Many straw hats made from fibre imported from Venezuela and Colombia are exported, the yearly production being about $350,000. Aloes to the extent of $70,000 and dividivi, a dye wood, to the value of $25,000, with hides, skins, and a native lace are the chief exports. Aruba ships some phosphate rock and has one small gold mine in operation. Much smuggling is done into Latin America.

This group imports about $2,000,000, $500,000 coming from the United States, $250,000 from Holland and the remainder from the leading European nations. They require flour, rice, beans, onions, garlic, corn-meal, condensed milk, medicines, oil, candles, tinned foods, soups, hams, cottons, shoes and hardware.

No duty or fees for travelers are charged.

The “Red D” (American) Steamship Line has a ship a week from New York to Curaçao, and the other islands can be reached by coasting boats from this port.

The Danish West Indies consist of three small islands in the Caribbean sea, St. Thomas, St. Croix and St. John, their total area being 138 square miles, with a population of about 25,000, mostly negroes, a few mulattoes and some European officials. St. Thomas, the largest in the group and about 26 miles from Fajardo, Porto Rico, is used as a coaling station for Hamburg-American ships in the Latin American trade. Its imports of $1,000,000 in 1913 are chiefly accounted for by one item—coal from the United States amounting to $550,000. Much bay rum is distilled here. The Panama Canal may revive the trade of this island, owing to its location in the lane of steamship travel.

St. Croix, with 14,000 people in its 81 square miles of area, raises sugar and cotton. They also make considerable rum.

The United States in 1913 exported $600,000 of St. Thomas’s $1,000,000 imports and $550,000 of St. Croix’s $800,000 worth of imports.

No fees are charged in these islands for commercial travelers.

American money is used here as much as Danish. There are no banks, merchants maintaining credits in New York or European markets from the sale of their exports and drawing against them. English is spoken universally.

The Quebec Steamship Company sailing from New York connects with St. Thomas; the other islands being reached by coasting vessels from this point. There are many opportunities from San Juan, Porto Rico, to get to St. Thomas.

These people buy from us coal, food stuffs, flour, dried fish, candles, oil, rice, onions, beans, shoes, clothing, boots, medicines, soaps and other staples.

The French islands in the Caribbean Sea are Martinique and Guadeloupe, and they import their requirements from the mother country, owing to the fact that such goods pay no duties. The town of St. Pierre, Martinique, with its entire population of 70,000 inhabitants was totally destroyed by an eruption from the extinct volcanoe of Mt. Pelee, May 8, 1902. Josephine, the first wife of the Great Napoleon, was born at Fort de France, Martinique.

We sell these colonies some food stuffs, oils and necessities, our yearly sales to Martinique being about $700,000 and to Guadeloupe about $900,000.

Martinique raises sugar and manufactures rum, her sugar production being about $3,000,000 yearly, and her rum export equalling $2,000,000 annually. Guadeloupe exports about $3,000,000 yearly, mostly cocoa, bay leaves, and vanilla beans.

The natives all speak French, and are mostly negroes and half-breeds, with the usual admixture of French officials and soldiers. Guadeloupe has about 1200 square miles and a population of 160,000, while Martinique possesses an area of 380 square miles with about 200,000 inhabitants.

The smaller islands of Marie Galante, St. Barts and half of St. Martins also belong to France and get their supplies from either Martinique or Guadeloupe.

The Quebec Steamship Company maintains a direct service between New York and these islands, connections for the smaller ports being made by coasting vessels. France also has a line of ships from Europe direct.

The British West Indies are made up of the following islands:

Trinidad and Tobago, Jamaica and Turks Island, with Caicos Islands and Caymans; Barbados; the Leeward Islands, consisting of Antigua, St. Kitts, Barbuda, Redonda, Virgin Islands, Nevis, Anguilla, Montserrat and Dominica; the Windward Islands comprising Granada, Grenadines, St. Vincent, and St. Lucia; the Bahamas and Bermuda.

Of these islands the population perhaps numbers 1,500,000, mostly blacks, and mulattoes, with a small percentage of white officials and merchants. The larger islands of Jamaica with 900,000 people, Barbados with 200,000 and Trinidad with 300,000 are the only ones worth visiting for business purposes, as merchants in these places have trading connections with residents of the smaller localities. Kingston in Jamaica, Georgetown in Barbados, and Port of Spain in Trinidad are the only large cities, and have good hotels and prosperous business houses.

English is spoken exclusively everywhere and American money accepted at its face value as readily as English currency in all these possessions. The larger islands have branches of Canadian and English banks with direct connection in New York. Credits are good.

In 1913 the exports were as follows:

Trinidad and Tobago $26,000,000
Jamaica and her outlying islands 11,000,000
Barbados 5,000,000
Leeward Islands 2,800,000
Windward Islands 2,900,000
Bahamas 1,300,000
———————————
$49,000,000

Trinidad, (with Tobago, twenty miles distant), 1754 square miles in area, is perhaps the most important. Of the $26,000,000 it should be noted that $11,000,000 was for coal, trans-shipped and not produced in the country, thereby reducing her actual productive power in money to $15,000,000. Her chief exports were as follows:

Cocoa $7,000,000
Sugar 2,000,000
Asphalt 1,300,000
Petroleum 400,000
Cocoanuts 500,000

in addition to copra, rum and molasses. Of these exports the United States took $7,000,000, France $2,500,000, England $2,400,000, Canada $875,000, and Germany $675,000.

Her imports in 1913 were $13,750,000, England supplying $4,500,000; the United States $4,000,000, Canada, $1,250,000, France $300,000 and Germany $200,000.

Both England and Canada are favored by a preferential tariff.

Jamaica covers an area of 4424 square miles. Its exports in 1913 were $11,000,000 as against $14,000,000 in imports. Her chief exports are:

Bananas $5,000,000
Logwood 850,000
Coffee 750,000
Cocoanuts 650,000
Rum 500,000
Sugar 260,000
Ginger 180,000
Tobacco 180,000

Of these the United States took $6,200,000, Great Britain $2,000,000, France $750,000, Canada $425,000 and Germany $425,000.

Jamaica’s chief export is bananas, almost all of which are taken by the United States, who in return sells her 50 per cent. of her imports, England, Canada and Germany following in the order named with $5,300,000, $1,300,000, and $340,000 respectively to their credit.

Jamaica has no preferential tariff with the United Kingdom and will not have so long as the United States continues to be her best customer.

Barbados’ area of 166 square miles is the most densely populated piece of land in the world, with 200,000 inhabitants. It imported $6,500,000 worth of goods in 1913 and exported $2,600,000. It is a great coaling station for ocean vessels, its trade in this line alone amounting to $2,400,000 last year.

The United States took $330,000 of its production in 1913 and sold it goods to the extent of $1,850,000. England controls most of its trade. Its chief articles of export are sugar, rum and molasses.

The following table shows the imports and exports of the chief of the remaining islands:

_Islands_ _Imports_ _Exports_
St. Kitts and Nevis $1,250,000 $ 950,000
Antigua 830,000 850,000
Dominica 720,000 735,000
Montserrat 150,000 180,000
Granada 1,350,000 1,800,000
St Lucia 1,500,000 550,000
St. Vincent 600,000 550,000

All of these islands have a preferential duty treaty with Canada and Great Britain, despite which our own sales with them in 1913 were about $2,000,000.

Sugar and rum are their chief products. Dominica and Montserrat export limes, lime juice and citrate of lime. Granada and St. Lucia export cocoa, and St. Vincent’s chief product is arrow-root. Last year St. Lucia supplied 135,000 tons of coal to vessels, most of which came from the United States.

The Bahama group, of which Nassau with 13,000 population is the capital, exported last year goods valued at $1,300,000, of which amount $850,000 was in sponges and $350,000 in sisal, the United States taking $620,000 worth. The imports in the same period were $2,000,000, of which we supplied $1,400,000.

Bermuda, 20 miles square with 3,000 inhabitants, depends for its existence upon the tourists who visit it and what we purchase from and ship to its shores. Its chief exports are Easter lilies, potatoes and early vegetables, 4,000 out of 12,000 acres being under cultivation, yielding the islands $500,000 yearly. Of its $2,775,000 imports this country supplied $1,600,000, England $750,000 and Canada $350,000.

None of these islands is self-sustaining. They need the necessities of life; flour, foodstuffs, hams, meats, vegetables, butter, lard, candles, oil, shoes, cotton, textiles, drugs, soaps, toilet articles, glassware, machinery and corrugated iron.

The Quebec Steamship Company and the Royal Mail Steamship Company, sailing from New York, stop at the leading cities of the larger islands, an inter-island steamship service being provided for. The Lamport and Holt line touches both at Trinidad and Barbados on their northward trip and the United Fruit Company boats stop at Jamaica. The Hamburg-American Line ships call at many of these islands.

XX
FOREIGN TRADE WITH LATIN AMERICA AND HOW IT DEVELOPED

No military campaign was ever planned with such exactness of detail and precision as that which characterized the preliminary movements of the exporting nations of Europe to acquire control of Latin American markets. When the Franco-Prussian war was over and the Powers of the Old World had settled down to a development of their resources, it soon became apparent that foreign fields must be sought in which to dispose of the excess products of their industry. With that object in view governments, trade associations, manufacturers, shippers, exporters, civic and social societies, colleges, merchants, and individuals united in one harmonious movement to accomplish this purpose. While each nation followed more or less the same general plan, still Germany attacked the problem with the thoroughness so typical of its people that its course in this direction may be taken as an example of what should be done in similar contingencies, and it may be well worth mentioning in detail.

To impress the Latin American people that their trade was courted by the nation as well as the individual producer, government commissions were dispatched from Europe to each of these countries, when possible in a war vessel of the nation sending them. With much pomp and great ceremony visits were exchanged between the members of this body and the authorities ashore and every effort made to develop a national feeling of regard between both parties, very much the same as we did when Commodore Perry opened up Japan to the world. Much time was spent in each country and nothing was overlooked that might be of any aid to accomplish the object in view.

Following these emissaries from the European Power came officials of trade bodies and business organizations, college professors and writers, each one studying the situation from his particular point of view and noting the things most required and the methods under which business was conducted. One of the subjects given the most complete and far reaching attention was the question of banking relations and how to best develop this important field, for it was early seen that this would form the most essential link in the perfected chain of business success. In the meantime the home government had caused to be printed throughout its territory, full and specific facts regarding the countries, the nature of their soils, everything obtainable about the flora and fauna, their mountains and minerals, the various waterways, climatic conditions and what crops could be grown with profit, with complete data concerning business opportunities. Commercial schools were opened wherein the student was taught Spanish and Portuguese, and perfectly drilled in Latin American business methods and etiquette. Realizing that much of their future success in these lands would be dependent upon having colonies throughout them, every effort was made to encourage emigration, the official authorities knowing full well that affection for the Fatherland and a belief in the superiority of its products, would materially help in the dissemination of its goods and keep up a demand for home made articles, until they had through their own merit obtained a foothold among the natives. As a direct result of this plan of colonization, fully one-fourth of the population of Chile are either German or of German descent, and the southern section of this country reminds one more of a portion of Germany in its type of building, the characteristics of the inhabitants, their dress, the nature of their business and their modes of living than of a Latin nation. The same is also true in the southern part of Brazil, where the Germans have many colonies, each provided with public schools in which natives are really taught German before acquiring their mother tongue.

The real ambassador of commerce—the traveling man—courteous, polite, affable, familiar with trade customs, national mannerisms, and speaking both Spanish and Portuguese perfectly was on the scene early, paying particular attention to the demands of the merchant. If a certain style of cloth was too wide, the obliging German made it of the dimensions required. If the color was too subdued for the aboriginal customer of the native merchant, the pattern and pigment were changed to suit the buyer. If plows were required with one handle instead of two, so that the farmer could have the other free for manipulating his cigarette, his wish was cheerfully complied with. The idea that filled the mind of the salesmen from Europe was to give the customer just what he wanted, and this rule was never deviated from. No attempt was made to force the storekeeper to adopt the customs of Europe in anything, but stress was laid on the fact that their only object was to oblige in every way the buyer, and cater to his demands. The suggestion from the storekeeper that he got six months’ time from England’s manufacturers, on this line of goods, was combated with the unanswerable argument that the seller would be pleased to bill the order at eight months if desired.

Samples of native-made articles that sold well were also purchased by the wide-awake representatives and sent home with full and complete data as to price, cost of manufacture, quantities consumed, and any other useful hint that practical observation might suggest, so that those in Germany might have an opportunity to experiment with a view to reducing the cost of the article and thereby obtain commercial control of this particular line. In a word, no stone was left unturned to accomplish the object always in view, namely—the complete capture of these markets.

As orders began to come in and were ready for exportation Germany suddenly realized that she was confronted with a problem which she had not seriously considered before—that of a national merchant marine. Without ships this vast business, now practically acquired, was at the mercy of the foreigner who had vessels in which to convey it to the markets across the seas. With the exorbitant freight rates which were beginning to be charged, as cargoes multiplied and ships became scarce, it became obvious that all this newly secured trade would be seriously jeopardized, if not completely lost, unless the entire situation was under the absolute control of the Government and in the hands of the German people. Accordingly the State took up the question, and to make a long story short, the result was the development of the enormous German merchant marine,—perhaps the most complete and perfect in the world—with subsidies from the national treasury, which enabled ship owners to quote a freight rate per ton so low, that it was cheaper to ship German made goods from Hamburg to Valparaiso, than from Hamburg to many of the interior cities of the Fatherland for home consumption. This last stroke of generalship in this business campaign for commercial supremacy gave Germany the greatest impetus toward reaching the goal upon which her eyes were fixed, and as a result her export trade as well as her import trade, increased by leaps and bounds, making her the envy of all Europe, a condition which in the opinion of many people undoubtedly had much to do with precipitating the European War.

This briefly is the story of how Germany secured control of not only Latin American trade, but much of the over seas business of the world. In the republics to the south of us the national effect of this commercial invasion is very noticeable. Natives were invited to visit and get acquainted with Germans in Germany, and when they accepted were the recipients of such courteous treatment and became so thoroughly impressed with the perfection of the German nation in every field of enterprise, that they returned enthusiasts on the subject. One of the results of this is seen to-day in the armies of Colombia, Mexico, Chile, Argentine, Venezuela and some of the Central American countries. They have all been instructed by German officers, imported for the special purpose and kindly loaned by the German military authorities—a fact worthy of serious thought when we think that some day Germany may turn covetous eyes upon some parts of Latin America. To see some of these troops march past with their peculiar knapsack, their goose-step and the _pickelhaub_ helmet, makes one feel that one is in Germany for the time being, anyway. Throughout the length and breadth of Central and South America are to be found German delicatessen shops and hotels; German stores and breweries; German banks and steamship lines; German salesmen and German schools, each one dependent on the Fatherland for supplies, and in turn playing an effective part and contributing a strenuous share toward forcing Germany to the front in every way.

In developing local markets their methods were equally unique and practical. I recall for instance the first brewery started in Venezuela. Venezuelans knew of beer in much the same way that we of the States know of _mate_, the herb used so extensively in the Argentine, Uruguay and Paraguay, for making a beverage—that is they had read about it and heard people refer to it, but few really knew what it looked like or how it tasted. All were naturally more or less suspicious of it. Nothing daunted the phlegmatic Teutons who had invested their money in the erection of the plant in pursuing their stolid, predetermined plan of introducing beer as a national beverage in lieu of the light clarets and other wines, formerly so much in use in these countries. A building on the most prominent corner of the city of Caracas was leased and in it chairs and tables were arranged as in German beer halls, while adjacent to the bar at which the beer was served direct from the barrel, was a lunch stand which provided excellent delicatessen food. When everything was ready, invitations were sent broadcast to the better class families to come and accept the hospitality of the brewing company without cost for the purpose of becoming better acquainted with the health and strength-giving properties of real German beer. Physicians were “sampled” in detail and told when to prescribe and what to expect from this wonderful beverage in certain diseases and especially during convalescence. Within a few months’ time the saloon became a rendezvous of the elite. Ultimately beer supplanted all other alcoholic drinks in this particular city. The same plan was carried out in other towns and I am certain that Latin America to-day can boast of more breweries, per capita, than Germany. Other local trade problems were attacked and solved in the same sensible, simple and practical manner, the result always being that German products grew in favor and in demand.

England, France and Italy of course developed their business in these lands along much the same lines, but none of these nations showed the deliberately planned aggressiveness and solidarity of purpose, or the determined unity of spirit that animated the German. England did more to establish her connections throughout Latin America along the path of extensive investments in national and local securities, the building of railroads, the dredging of harbors and erection of docks, while France, relying upon the admitted and acknowledged fact that all the civilized world looked to her for its fashions, styles, millinery, articles of clothing and dress, toilet goods, and luxuries, very naturally took advantage of existing conditions and used this as a foundation on which to erect her trade. Whatever commercial prestige either Spain or Portugal acquired in these countries was due almost entirely to the presence of thousands of citizens of these nations, who created a demand for articles of home production, and this is relatively small.

In this simple but thorough manner was the trail to business success in this field blazed. The experiences of our predecessors, and the lessons they learned should stand us in good stead in our efforts and help to direct our feet from all possible pitfalls. In fact we should, by following and improving on their attempts, if this be possible, acquire a commercial supremacy in this territory in less than half the time taken by the Europeans.

XXI
METHODS OF DOING BUSINESS

The question of what method to employ in developing a business in Latin America depends primarily upon your capital and the nature of your product. Obviously we manufacture numerous things that these countries cannot use. Many of our manufacturers seem to be totally unaware of the goods suitable for these markets or their peculiar requirements. I have met a man in Brazil selling, or rather trying to sell, snow plows. It is quite apparent that no amount of exploitation or argument could possibly produce results with such a commodity. With the exception of a few of the more southerly cities of South America, and some located in the highest mountains it would be useless to send a representative to these fields for the purpose of introducing a heating system, no matter what virtue it might have. I know of an American canoe manufacturing concern advertising its wares in a portion of the Argentine which is absolutely dry and without navigable water, as a result of which imported bull frogs die of old age without ever having a swim. It therefore behooves one to make a full and exhaustive investigation through all possible sources of information, and ascertain if one’s goods are really appropriate for these lands. Another point worthy of consideration is that wares especially adapted to the uses of some countries may be totally unfit for others. Accurate preliminary data of a reliable nature may generally be obtained by addressing the United States Consuls located at the various seaports of the Latin American countries. These gentlemen are especially equipped for obtaining all the information necessary, and are charged by the United States Government to supply complete details to inquirers.

A COMPARISON OF CLIMATES

This map shows South America with its cities and countries placed just
as far to the north of the Equator as they naturally lie to the
south of it, in order to enable comparison at a glance of the
climatic relationship between the United States and the South
American markets. The effect is the same as if the map of the
Western Hemisphere were folded together at the Equator and the
impression of the South American part transferred upon the map of
North America. The longitudinal position of every part of South
America is thus correct.

The map at first glance would lead one to say that Argentina has a
range of climate equal to that from the City of Mexico to Hudson
Bay, but the climate of South America can’t be judged that way. A
cold ocean current along the West Coast and a warm one along the
East Coast greatly modify it. The altitudes of parts of the
continent within the tropical zone also temper the heat. The extreme
north of Argentina is described as having the climate of Southern
Florida. The mean annual temperature at the very southermost part of
Argentina is said to be about that of Maine with a minimum hardly
lower than the moderate one of Puget Sound and a maximum no higher
than that of Nova Scotia. All Argentina is said not to have the
extreme range of temperature found in the United States. Going to
show how greatly ocean currents offset latitude, the islands of
Great Britain are also drawn in on the map in their position
relative to the Equator. London is farther north than the
northermost spot in the United States exclusive of Alaska.

(_Reprinted by permission of the editor of_ The Americas, _published
by the National City Bank of New York_).
]

The wisest and best plan, once you are determined to enter these fields, is for one of the heads of the firm or one of the leading officers of the company to make a preliminary tour through the lands in question for the purpose of studying the situation and ascertaining the demands existing for similar lines. On such a trip prices should be carefully observed, strict attention paid to duties, freight and other incidental charges. It is by noting and studying these conditions that you will be able to meet and overcome competition. Special care should be exercised in giving the natives just what they want and not in trying to foist on them the thing you wish them to have, even should it be better, cheaper and more practicable. With this object in view, local dealers and merchants should be interviewed and care taken to ascertain every detail that might possibly have any bearing on your future marketing plans. Being thoroughly prepared in advance helps materially in smoothing the road to be travelled. Samples of competing lines with prices and minute data of all kinds should be sent to the home office for reference purposes.

It will soon be apparent, assuming that the official or representative who has gone over the field finds it pregnant with possibilities, that your business in Latin America may be conducted upon one of the following lines:

First. The opening of your own branch house for each country, or for a group of countries.

Second. Establishing an exclusive agency for each country with a resident merchant therein.

Third. Selling through your own representative directly and conducting your own shipping and banking.

Fourth. Marketing your article through some American export commission house.

Fifth. Exploiting your goods through your own representative and turning the account over to a local or native commission house or merchant for forwarding the goods and collecting for the same.

Sixth. Uniting with several manufacturers in allied lines and sending one salesman to represent you, on a co-operative plan.

Which of these particular forms of introduction is best adapted to your special line is a matter for you alone to determine.

Assuming that your capital and commodity warrants you in establishing a branch house in each individual country or in a group of countries, which is by far the best plan of conducting your business, the question of prime importance is that you should be located in or near the leading seaport in order that you may be close to shipping as well as to be able to superintend personally the discharge of goods and their clearance through the slow moving native custom houses. Great care should be taken to be on the leading line of railway, or near as many different lines as possible in order to facilitate the forwarding of goods to their destination and to the interior. These are vital factors and should be carefully weighed in determining your location. If your business is one requiring the carrying of a large and varied stock, it will be rather difficult to get proper warehousing accommodations especially in the metropolis or port and it may be necessary to erect your own building for this purpose.

The adoption of this system of introducing a line of goods requires careful planning and too much stress cannot be laid upon the selection of a tactful and experienced manager for your venture. Banking arrangements must be made. Municipal and state taxes must be provided for and the thousand and one details attended to that are unknown and unheard of in this country, each one of which requires patience and tact in solving and means the expenditure of money and the apparent wasting of much time. In other words the initial expense involved is far greater than a similar undertaking would be in the United States or Europe and only a business yielding large profits can be expected to withstand the immense financial drains to be incurred. While the salaries of the native office help will be comparatively smaller than the prices paid in the United States, still there will be noted an increased cost in maintaining a travelling force as well as the necessary American employes of the staff. Transportation charges are high and the cost of a salesman on the road in any of these lands means fully double the expenses of a similar man in this country. Travel facilities are poor, distances between markets long and much time must be consumed in each city visited, especially in the preliminary trips, all of which increases the cost of the traveller, and for the first few years makes him a rather expensive luxury. This must be submitted to with patience for upon his efforts depends your success. It therefore follows that the business to be done must be a large one to afford such preliminary charges and its future outlook must be of the brightest character. That such agencies can be maintained at a profit however is proved by the fact that all the large houses of Europe prefer doing business along this line, and within comparatively recent years this is the method being employed by the big American houses and corporations venturing into these territories. The Standard Oil Company, the Vacuum Oil Company, The Singer Sewing Machine Company, The National Cash Register Company and many of the larger mercantile houses and manufacturing concerns maintain their own branch offices in the principal cities of the Latin American countries and are entirely satisfied with the results.

The establishment of your own agency in a country indicates to the public your intention to become a portion of the native business community and gives you a solid standing with the trade besides bringing you in closer and more intimate touch with the consumer. It has many other advantageous features which must be apparent.

Should your business not warrant such an outlay, the next best method of approaching the situation is the appointing of some high-grade, resident merchant, either foreign or native, in each country, as your exclusive representative. It is obviously unnecessary to state that in making such a selection the greatest care should be taken to investigate most thoroughly the business reputation and financial standing of the one appointed. Very often it is wisest to give your agency to some small, young aggressive firm, with limited capital, rather than to a staid old house with much money and prestige. These suggestions are given for what they are worth. Common sense will indicate the concern which in your good judgment is best adapted to represent you properly. Old established houses generally have the capital and means to introduce goods through the country and will often guarantee to place a certain amount of business within the year upon conditions to be specified. Once you have placed your agency, be sure to turn over all inquiries or orders received from within their territory to them for their attention. This I regret to state has not been typical of American houses and has done much to make responsible firms hesitate about accepting exclusive agencies. A strict adherence to this suggestion will tend to establish your honesty of purpose and will be deeply gratifying to your local representatives.