to be sold. Through such representatives sales are made to approved customers and the goods consigned direct to them. The men should be supervised through personal visits from the manufacturers or the representatives should make periodic visits to the factories in the United States in order to receive and give instructions in the many details that are essential to the proper manufacture, sale, and shipment of important lines.

Offices of American commission houses in Venezuela are under the management, in some instances, of representatives from their main office and in other cases of local men, who make sales and have an intimate knowledge of the credit standing of those to whom they sell. They also know the credit standing of other firms to whom goods have been sold by manufacturers' agents. The manufacturers' agents make their shipments through the commission houses and arrange with the latter for extensions of credit by the commission houses to their customers.

DEVELOPMENT OF SALES.

Great care should be given to the execution of orders; there must be a strict compliance with the wishes of the purchaser as regards the kind of articles, quality, etc. The Venezuelan merchants are accustomed to receive the goods from European concerns exactly in accordance with the orders placed and are greatly disappointed if they receive articles differing from the samples. When in doubt inquiry should be made. Any reasonable delay is preferable to wrong shipment.

The European producer, whether French, German, or English, considers in the first place the local necessities of the consumer, the prevailing habits and tastes. He produces his goods in accordance with these conditions and does his utmost to adapt them in every detail to the instructions and even to the peculiarities of the local merchant. In a word, the European merchant and manufacturer submit entirely to the wants of the buyer. The American producer generally follows the contrary system; he desires the customer to be satisfied with his product.

QUALITY VERSUS PRICE.

In most lines price is what counts. The cheapest merchandise, although inferior in quality, appeals to the merchant. This observation does not apply so strongly to materials imported for construction purposes as it does to articles of wear and fancy. Price, however, is the principal question just now with purchasers of materials, especially steel products, Portland cement, and glass. Reference to other parts of this report will show the extreme prices that result at present from the ocean freights and the high rates of duty on most of the basic structural materials.

MEASURES DESIGNED TO INCREASE BUSINESS.

Attention should be given to the production of materials and goods desired by the people of the country; care should be exercised in the filling, packing, and shipping of orders; and the local architects and engineers should be advised by competent representatives of the

advantages of the many safe, sanitary, and economic constructions and devices that have been developed and successfully employed in America during the past 15 to 20 years. The country is badly in need of men with an adequate knowledge of construction work. There are only a few contractors, and the construction methods, except in rare instances, are exceedingly primitive.

LETTING OF CONTRACTS.

The Venezuelan Government generally does its own public work on material and force account (see schedule of labor prices and bonus system in another part of this report). Some of the more progressive contractors in Caracas are beginning to take work by contract, quoting fixed sums to their clients for the work to be turned over complete, ready for occupancy.

ATTITUDE OF VENEZUELAN BUYERS TOWARD AMERICAN GOODS.

The native merchants give the salesman from the United States a good reception, especially if terms and conditions of sale are similar to those obtained from European firms or if special articles are offered that are ordinarily unobtainable in other countries; also, as a result of conditions brought about by the European war, the merchants are glad to obtain from the United States the articles necessary to maintain their stocks. Any advantage that may have been gained since the beginning of the war, however, can be maintained only through the most painstaking attention to the filling of orders and the many details of packing and shipping referred to elsewhere in this report. Substitutions should be absolutely avoided.

The general merchant in Venezuela has preferred to trade with European countries because of the terms of sale and credit conditions previously obtainable from those sources. There are many European merchants in Venezuela who naturally look to their home countries for their goods and who, after the termination of the war, will undoubtedly return to their previous channels of supply. The salesman from the United States in competition with European salesmen will always have to contend with these adverse elements in disposing of his materials to the native concerns. It must always be remembered in this connection that terms of credit constitute probably the most important factor.

PACKING, SHIPPING, AND INVOICING.

The system of packing is a very interesting matter. The first condition is that the parcels must be relatively small and light, taking into consideration that the overland transportation to the interior can not always be made by rail or on cart roads, but has often to be effected by pack train. Second, it is necessary to consider that import duties are charged on gross weight-that is to say, duty is paid jointly for the box, bale, etc., and its contents, all at the same rate. For this reason the European shipper makes a special packing, carefully calculating the economy in import duty. The American merchandise, on the contrary, generally comes in very heavy packing, which is sometimes much heavier than the goods contained in the packages, thus causing considerable loss to the importer.

NECESSITY OF COMPLYING WITH CUSTOMS REGULATIONS.

In the past, suggestions have been made to American firms indicating the way to avoid the payment of fines and the confiscation of merchandise, resulting from failure to comply with customs regulations in regard to packing and declaration or the numerous intricate requirements as to the filling out of bills of lading. Upon several ocassions the recipients have replied that by reason of many years' experience they felt competent to handle their foreign trade. To one who has given close study to the important matter of competing successfully with the European exporters (who are notably cautious in dealing with all foreign tariffs), it seems incredible that American firms should ignore such suggestions and the positive instructions issued by their customers in Venezuela.

Since the outbreak of the war, Venezuelan buyers have found it necessary to issue carefully prepared printed instructions for the use of American shippers, a copy of which is inclosed with each northbound order. They say frankly that they take this precaution in order to avoid long delays occasioned by the confiscation of improperly declared merchandise. No such measures ever were necessary in dealing with European firms.

If rigidly adhered to, these instructions preclude the possibility of fines being imposed upon imports into Venezuela. But if any one of the requirements is disregarded, the imposition of fines follows automatically and invariably. As briefly as it seems possible to state them, these requirements are as follows:

Consular invoices must be made out in Spanish, in triplicate, and they must contain: (1) The name of the shipper and of the consignee; (2) the port of shipment and the port of arrival; (3) the kind (whether steam, sailing, etc.), nationality, and name of the vessel; (4) the name of the captain; (5) the mark and number of each package and whether box, bale, barrel, etc.; (6) the exact gross weight in kilos, in figures, and also written out in full; (7) the sale price in bolivares ($0.193 each).

The contents of each package, box, baie, etc., must be declared by designating the name of each kind of merchandise, or in lieu of this, according to the declaration stated in the last list of Venezuelan tariff duties (without omissions or abbreviations) It is forbidden to use ditto marks or brackets, and every iine must be filled in. No spaces or margins can be left blank.

Packages of equal contents, size, weight, and form (such as bags, boxes, barrels, or bales of cereals, soap, chinaware, cement, etc.), and distinguished with equal numbers and marks, may be included in one consignment without being specified one by one.

Merchandise of different classifications under the Venezuelan tariff must not be packed in the same container, for the reason that the customs authorities collect gross weight on the article that pays the highest duty.

Invoices should be presented for the approval of Venezuelan consular officials in ample time before the steamer is due to sail. It is desirable to ascertain in advance from the consul or his assistant or substitute what he will consider ample time. The reason for this is that the Venezuelan law provides that when one of the consular officers indicates on an invoice that it has been presented to him "only a

short time before the vessel is due to sail," he is not responsible for any errors that may be contained in the document. American firms, fined for errors in bills of lading, have been informed by the Venezuelan Government that the consul was blameless, even though the document bore his signature of approval.

Consular invoices must be remitted "as early as possible," which means not later than on the vessel that conveys the merchandise.

In addition to the foregoing, special instructions are necessary coyering packing and declaration of textiles, which pay duty not only according to weight but according to the number of threads to the space equivalent to a centimeter. The slightest variation from instructions may result in fines amounting to thousands of dollars.

"will

The violation of any of these requirements, in the words of stock instructions issued for the guidance of American exporters, cause extraordinary fines and expenses, which the consignee will be obliged to charge to his account.'

The subject has been treated by many writers, but emphasis must still be placed upon the necessity of packing various classes of merchandise with a view to their being transported on mule back. American shippers continue to neglect the requirement for light, durable crating light because of the rough treatment that is always to be expected from a steamship winch and the transshipments necessary for nearly every class of merchandise.

CREDITS AND TERMS OF PAYMENT.

The system of selling on credit was established in Venezuela by Europeans a number of years ago. Cash sales are relatively few in number. Credit is necessary for the reason that the importer's activity in ready money is generally confined to one period of the year. The country being agricultural and not manufacturing, the economic movement depends on the production of exportable agricultural products. Coffee is the most important of these; the gathering of this crop once a year determines the period of greatest commercial activity. The operations of the merchant therefore depend upon the crops by which he provides himself with facilities, hence the necessity and convenience of making his purchases on credit. The ordinary time granted six to nine months. The American system of cash or short-term credit therefore encounters great difficulties in the effort to replace the European system.

The credit of the buyer being good, the merchant in Germany presents to the bank his documents of sales to South American customers and at once receives his money. The bank, which pays only from 3 to 4 per cent for money on deposit, continues to carry the account of the merchant on interest account at 6 per cent for the time of credit allowed by him (usually six to nine months), and when the merchant is paid by his customer the bank in turn receives payment. Important interests, familiar for many years with the Venezuelan markets and local merchants, have suggested a remedy. This contemplates the extension to Venezuela of adequate United States banking facilities, giving to the country the same consideration as some of the other South American countries, namely, the establishment of a "dollar credit" furnished by a United States bank.

Venezuela requires investigation by our banking interests. The Royal Bank of Canada has recently opened several branches in the principal cities and is reported to be doing a very large business. This condition indicates what a United States bank should be able to accomplish in constructive work for promoting our trade with Venezuela.

In Venezuela 70 per cent of the total trade is done to-day with the United States, while the business with Canada is practically nil; consequently it is logical that our business should be done through our own system of banks. It is therefore the duty of Americans to see to it that the condition just indicated is remedied in the near future.

The establishment of a system of United States banks in Venezuela would materially assist in the retention of a good percentage of the trade gained during the past two years. The Venezuelan merchant has more confidence in a foreign bank than in banks operated by his own people. This is proven by the experience of the Royal Bank of Canada, and it may be safely assumed that, dealing with the United States, he would prefer the opportunity to deposit his funds and have his business handled by a United States bank.

The only means of securing reliable credit information from Venezuela would be through the establishment of an American branch bank in that country; no such means now exist.

Most Venezuelan concerns prefer c. i. f. quotations, because of the close margin at which some of the engineering materials, such as cement, steel, and lumber, are sold. This preference is also expressed by some of the public utility corporations that import materials direct for use on their properties.

SECES ADVERTISING METHODS.

The advertising of new structural materials is best accomplished through the architects and builders, who, it has been observed, are keen to be advised of anything new in the way of novel and improved methdos of construction. The advertising of new materials and methods in trade journals is recommended. The attention of owners may be gained through occasional advertisements in the daily Spanish publications of Caracas. The issuing of circulars in Spanish has also been recommended, these being sent by first-class postage to probable purchasers. Correspondence should be in Spanish.

PATENTS AND TRADE-MARKS.

The Government of Venezuela, through its Ministerio de Fomento, grants patents on foreign inventions for 5, 10, and 15 years. If the invention is patented in a foreign country, the Venezuelan patent is granted only for the time remaining until expiration in the country of origin.

Every application for a patent must be accompanied by a detailed description of the article or process to be patented and by the drawings and samples of it-two copies of each.

If the person applying for a patent does not do so personally, a power of attorney must be sent to the person who is to represent the applicant.