BANCROFT LIBRARY THE LIBRARY OF THE UNIVERSITY OF CALIFORNIA FOREIGN COMMERCE SERIES Dumber Three Our South American Trade and its Financing FRANK O'MALLEY THE NATIONAL CITY BANK OF NEW YORK Foreign Commerce Series I Trading With Our Neighbors in the Caribbean. % OSCAR P. AUSTIN II The Function of Imports in Our Foreign Trade. Sy GEORGE E. ROBERTS III Our South American Trade and Its Financing. y FRANK O'MALLEY IV -Trading With the Far East. *By OSCAR P. AUSTIN [/# Preparation] V The Development of Scandinavian American Trade Relations. T$y F. C. SCHWEDTMAN [/ Preparation^ OTHER volumes in this series, which shall deal with current problems affecting foreign trade, and with financial, economic and commercial conditions in various sections of the world, will be published later by The National City Bank of New York. OUR SOUTH AMERICAN TRADE AND ITS FINANCING Buenos Aires Branch The National City Bank of New York OUR SOUTH AMERICAN TRADE AND ITS FINANCING How to ^Develop How to Finance and How to Hold Trade South ^America *By FRANK O'MALLEY ^Assistant Cashier THE NATIONAL CITY BANK OF NEW YORK LAWS AND CUSTOMS OF THE VARIOUS SOUTH AMERICAN COUNTRIES GOVERNING DRAFTS FORWARDED FOR COLLEC- TION I THEIR PROTEST I CUSTOM HOUSE CLEARANCE AND REGULATIONS I DOCUMENTATION OF SHIPMENTS ! INSUR- ANCE OF SHIPMENTS IN FOREIGN WAREHOUSES : SOUTH AMERICAN STORAGE FACILITIES I STAMP CHARGES : PARCEL POST I THE LICENSING OF AMERICAN REPRE- SENTATIVES AND SALESMEN I THE CUSTOMS ENTRY OF SAMPLES : THE OPENING OF BRANCH OFFICES OF AMERI- CAN FIRMS I THE RUBRICATION OF BOOKS OF ACCOUNT, TRADE MARKS, ETC. "frith GENERAL INFORMATION OF VALUE TO AMERICAN FIRMS INTERESTED IN SOUTH AMERICAN TRADE 1920 FOREIGN COMMERCE SERIES Dumber Three 4443 FOREWORD }ITH the advent of peace, the return of the world to normal conditions must of necessity be slow and gradual after the tremendous upheaval which has convulsed civilization for the past five years. For some time prior to the war, the foreign trade of the United States showed a healthy increase; but the great conflict, in con- verging the thought and energies of Europe upon war and its necessities, gradually converted the American nation into the temporary work shop and supply house of the world. In an endeavor to meet this unprecedented demand for its products and manufactures of every description, with the added strain of becoming in 1917 an active belligerent in the conflict, there have been invested in the United States since 1914, in new productive enterprises and machinery, more than six bil- lions of dollars. If these new forces, in addition to those in operation before the war, are now to be kept in productive activity, it becomes incumbent upon the United States to develop foreign outlets to take over the surplus to be expected from this production. It is the realization of this future probability, in conjunction with the forced development of our foreign trade as a result of abnormal world conditions, which has radically changed our attitude towards foreign business and particularly towards the trade of South America. The large international American com- panies have enjoyed a constantly increasing foreign business for many years past, statistics indicating that American foreign trade doubled between the years 1903 and 1913. The impetus now being given our foreign endeavors, how- ever, is such as only a world crisis could have brought about, and the indications are that American business is gradually ex- panding adequately to cope with the world demand upon it. The attitude of South American business men toward us is likewise undergoing a change in our favor. Prior to the war, Europe practically dominated South American markets, but the greater familiarity now developing along commercial lines be- tween North and South America is gradually replacing with confidence and respect the feeling of prejudice and distrust which unfortunately has hitherto prevailed. Correspondence received by The National City Bank of New York, from merchants throughout the United States who are following the trend of the times in looking to South America for the extension of their business, indicates a widespread desire for information concerning the modus operandi of the financial and commercial operations in connection therewith. It is in an endeavor to supply this data that we have com- piled the practical information to be found in these pages. Our South American Trade and its Financing FOREIGN BRANCH BANKS A> an evidence of its faith in the future of American foreign trade, The National City Bank of New York has been prepar- ing during the past five years for the increased momentum which it was foreseen must eventually be given to our efforts in this direction. We have now, July i, 1920, in active operation throughout the world, eighty-five branches, including twenty-nine branches of the International Banking Corporation, now included in the organization of The National City Bank of New York. These branches are located in the following countries, and are supplemented by correspondent banks in practically every important commercial city of the world. BRANCHES OF THE NATIONAL CITY BANK. OF NEW YORK ARGENTINA BUENOS AIRES Sub-branch PLAZA ONCE ROSARIO BRAZIL BAHIA PERNAMBUCO PORTO ALEGRE Rio DE JANEIRO SANTOS SAO PAULO BELGIUM ANTWERP BRUSSELS CHILE SANTIAGO VALPARAISO COLOMBIA BARRANQUILLA BOGOTA MEDELLIN CUBA ARTEMISA BAYAMO CAIBARIEN CAMAGUEY CARDENAS ClEGO DE AVILA ClENFUEGOS COLON CRUCES GUANTANAMO HAVANA Sub-branch CUATRO CAMINOS Sub-branch GALIANO MANZANILLO MATANZAS NUEVITAS PlNAR DEL RlO PLACETAS DELNORTE REMEDIOS SAGUA LA GRANDE SANCTI SPIRITUS SANTA CLARA SANTIAGO UNION DE REYES YACUAJAY ITALY GENOA PERU PORTO RICO PONCE SAN JUAN RUSSIA *Moscow *PETROGRAD SOUTH AFRICA CAPE TOWN SPAIN BARCELONA MADRID TRINIDAD PORT or SPAIN URUGUAY MONTEVIDEO Sub-branch CALLE RONDEAU VENEZUELA CIUDAD BOLIVAR CARACAS MARACAIBO * Temporarily closed. [ 7 OUR SOUTH AMERICAN TRADE AND ITS FINANCING BRANCHES OF THE INTERNATIONAL BANKING CORPORATION CALIFORNIA INDIA SANTIAGO DE LOS SAN FRANCISCO BOMBAY CABALLEROS CALCUTTA SANTO DOMINGO CHINA RANGOON CITY CANTON HANKOW JAPAN PHILIPPINE HARBIN KOBE ISLANDS HONGKONG YOKOHAMA PEKING JAVA MANILA SHANGHAI BATAVIA TIENTSIN TSINGTAO SOERABAYA PANAMA DOMINICAN COLON ENGLAND REPUBLIC PANAMA LONDON BARAHONA PUERTO PLATA STRAITS SETTLE- FRANCE SANCHEZ MENTS LYONS SAN PEDRO DE SINGAPORE MACORIS THESE BRANCHES will be further supplemented as world conditions normalize and as conditions at strategic points indicate the advis- ability of establishing further outposts in American banking to assist in the broadening of foreign markets for American trade. SERVICES RENDERED BY BRANCH BANKS THE facilities which our foreign branch banks enable us to offer our clients may be epitomized as follows : [ i ] The collection of drafts drawn upon foreign houses. [ 2 ] The protection of the interests of American merchants through the control of "To Order'* shipments until payment or accept- ance by foreign purchaser of the corresponding draft. [ 3 ] The protest of drafts where drawer so instructs. [ 4 ] The securing of legal services in foreign countries through our own foreign attorneys. [ 5 ] The creation of foreign markets for dollar exchange. [ 6 ] The collection of credit data on foreign houses, and the con- tinued study of foreign market and credit conditions, reports on which are constantly forwarded to New York for the in- formation of our American clients. [ 8 ] BRANCH BANK SERVICES [7] The forwarding, to our branch banks, of credit information upon firms represented by American travelers, thus enabling these representatives to refer foreign merchants to our branches for credit information concerning their principals. [ 8 ] The collection of trade data covering the possibilities in foreign countries of American manufactures and products of every description. [9] The study of foreign market conditions covering commodities produced in the foreign country for export. [10] Upon request, letters of introduction and letters of credit are issued from our New York office to our foreign branch corre- spondent banks placing at the disposition of our American clients or their representatives who may be traveling the varied facilities of our foreign offices and connections. [11] Branch banks through coming directly into contact with the trade and financial problems arising in both the export and import field assist materially in their solution through the pub- licity of the results of special study of such matters. [12] The assistance rendered in the development of American foreign commerce, both import and export, through the direct banking facilities afforded at home and abroad and in general through the bringing about of a far better commercial understanding between this country and the countries in which our branch banks are functioning. Credit Service ESSENTIALLY the most important service rendered to both our American and foreign clients is through the medium of our efficient credit service. This we have developed covering not only every State of the United States but likewise every country in which we have established branches. To our American clients we offer a credit service on South America which is the equivalent of that offered on domestic commerce by the great commercial agencies in this country. Foreign Credit Data WITH EVERY BRANCH, we have established a Credit Depart- ment with a competent staff, the members of which devote their [ 9 1 OUR SOUTH AMERICAN TRADE AND ITS FINANCING entire time to securing detailed information concerning the business community within their jurisdiction. This data is kept on file at our New York office, and should be of incalculable value to our clients interested in South American trade. One of the obstacles encountered hitherto in our relations with South America has been the lack of reliable credit data on merchants in that part of the world, rendering it practically impossible to extend time on sales. With the service which we are now in a position to offer through our Credit Department, however, American merchants should be en- abled to accord to their foreign clients the same relative credit facilities which they would be disposed to accord firms of like credit standing in this country. This does not mean that we are to extend the same long terms which were accorded to South American merchants by Europe before the war, but it does render possible the elimination of the exaction of cash at New York, or against documents at destina- tion, in those instances where the credit information indicates that the moral and financial responsibility of the foreign house entities it to more consideration. Credit Data on American Houses Filed with our Foreign Branches THIS SAME SERVICE will be found to be of value to our American customers who contemplate sending travelers to the South American field, inasmuch as, if so requested, we shall forward credit information on American firms to our branches within the itinerary to be covered by their travelers. This will enable the representative of the house, when approaching a foreign merchant, to inform him that the re- sponsibility of the American firm he represents may be investigated through the local branch of The National City Bank of New York, thereby establishing a feeling of confidence, an element which without this service must be sadly lacking between houses separated by per- haps thousands of miles. This service is without charge, and is at the complete disposition of our foreign and American clients. Commercial Department EVERY BRANCH established throughout South America is equipped with a Commercial Department in charge of a competent trade^staff, the members of which devote their entire time and efforts [10] FOREIGN DISTRIBUTING AGENCIES to the collection of data and information for the compiling of reports on every phase of the commercial field in their particular territory. These staffs study foreign markets with a view to their availability for American merchandise and development. They endeavor to famil- iarize the foreign merchant with the possibilities of his particular field for the placing of American merchandise just as the Foreign Trade Department of the Home Office in New York is endeavoring constantly to bring before the American merchant the potentialities of the various South American countries for practically every class of American manufactures. While our branches are at the disposal of our American clients for securing information relative to the possibilities of different lines of merchandise in the foreign field, we do not undertake, excepting under unusual circumstances, to sell, market, or store merchandise, or to distribute samples thereof. We have in our files, however, the names of reliable houses in the different South American countries through whom such functions may be performed. FOREIGN DISTRIBUTING AGENCIES OUR South American clients are constantly requesting that they be placed in communication with American houses desirous of having their product introduced into South America through estab- lished foreign houses acting as distributing agents for one or more countries. We have assisted through this medium in establishing rela- tions between thousands of North and South American concerns. Caution in the Arrangement of Exclusive Agencies IT is NECESSARY to use discretion in the matter of granting exclusive agencies covering one or more countries. Should an exclusive agency of an American product be given to a merchant in the Argen- tine to cover say Brazil, Uruguay, Chile and the Argentine, it would be inadvisable to refer Brazilian or Chilean merchants to the Argen- tine distributor for their requirements, inasmuch as the product could be delivered from the United States to Brazil or to Chile at a lower freight rate, and consequently at a lower cost than would be possible if distribution were to be made from the Argentine. In other words, the granting of exclusive territory should be restricted within reason- able limits, inasmuch as the doubling back of freight charges rendered OUR SOUTH AMERICAN TRADE AND ITS FINANCING necessary under an exclusive agency if granted in the form described could easily increase the cost to a point where it would interfere with the profitable sale of the product. SELLING TERMS IF a permanent South American business is to be developed, it will be necessary for American merchants to accord time. The exaction of "Cash New York" or "Cash Against Documents Destination" im- plies a lack of confidence which is justly resented by South American firms of known responsibility. There may have been some excuse for this attitude on the part of American merchants before the establish- ment of branches in South America of American banking institutions. Now, however, with the twenty branch banks which this institution has in actual operation in the various South American countries, the credit facilities which we are in a position to offer to our clients, and which are treated of in detail under "Credit Service," should permit of American merchants granting to South American houses of proven responsibility the same relative credit terms accorded to houses of similar standing in this country. If a permanent business is to be developed in South America, terms of from 60 to 1 50 days should be accorded to responsible firms. The average European terms accorded before the war were 1 80 days, and, with a return of European competition, South American business will naturally gravitate to the country (merchandise being practically equal) which offers the best facilities for payment. South American merchants are averse to making changes of avenues of trade once established. This was the sad experience of former American travelers to South America. The war, however, disrupted the old trade routes, and Europe cannot very well for some time to come accord the long terms of the pre-war period, although reports from South America indicate that representatives of English houses are now offering terms of from four to six months, charging interest, however, from date of invoice at the rate of six per cent. As this country should be better able to accord time, the period is opportune for the development of the good will of reliable South American houses by according now the credit extension to which their credit standing would indicate they are entitled. It must be remembered that the South American merchant is some [12] INSTRUCTION FROM CLIENT thousands of miles removed from his sources of supply, and what- ever time is accorded him does not commence until after the arrival; in fact, until after the release from the customs in his own country of the merchandise ordered, as at times it takes from five days to two or three weeks to effect release. It should, furthermore, be borne in mind that where the draft is drawn in dollars, a request for an extension of a few days or weeks in payment does not necessarily imply that the foreign firm is short of funds. In the great majority of instances this simply means that as the dollar draft must be met in the currency of the country, the exchange rate at the date of maturity is unfavorable and the merchant wishes an additional period in the hope that exchange in the interim may swing back to a figure which will enable him to meet the draft on more favorable terms. For this extra period he willingly pays interest. South American merchants are all students of exchange, as they are constantly meeting drafts in the various currencies of the world. INSTRUCTION FROM CLIENT Packing, Billing, Shipment ADHERE scrupulously to instructions of client as given in order. The failure to observe this fundamental rule of foreign commerce has shipwrecked the hopes of many houses aspiring to establish foreign relations. Note particularly the instructions regarding packing and shipping. If foreign client requests that certain quantities of merchan- dise be wrapped in paper before packing in case for shipment, it is of importance to the clients interest that such instructions be complied with. For further reference to this important topic, note remarks herein under "Packing." See that the number and the marks and measurements of boxes and cases, with weights in kilos, appear on invoices. If a request be made by the foreign customer to have measure- ments of boxes, bales, or containers appear on invoices in the metric system, considerable inconvenience and perhaps expense may be saved for him by compliance with this request, and such compliance may likewise insure to the American merchant the retention of his foreign customer's future business and good will. The most frequently used [13] OUR SOUTH AMERICAN TRADE AND ITS FINANCING of the metric equivalents of our weights and measurements will be found herein under "Metric Weights and Equivalents." If three or four invoices and a similar number of ladings are re- quested, see that this number is furnished. We should assume that client knows what his needs and those of his trade require. Furthermore, these requirements are not directly those of client, but of the customs department of the country to which the shipment is made. Substitution of Merchandise A CONSIDERABLE element of risk is assumed by American manufacturers or exporters in substituting one class of merchandise for another, or different kinds, colors, or weights of the same mer- chandise, without the express consent of the consignee. Where such substitutions may, in the opinion of shipper be neces- sary, it is advisable before making shipment to secure cable authoriza- tion from the foreign purchaser for so doing. PACKING A SUBJECT calling for close and intelligent study in foreign trade is the packing of shipments. On the kind and manner of packing depend the arrival of shipment at destination, the amount of rail and ocean freight charged for transportation and the amount of customs duties imposed. Duties are frequently affected, sometimes quite seriously, by faulty packing or by the use of a container or a covering which brings the contents under a classification of tariff higher than would be the case were a different kind or method of packing used. Packing should be considered with three different aspects in view: the preservation of the merchandise, economy in duties to be im- posed by the foreign custom house, and economy in the space occupied by the packed shipment. In connection with this subject it should be remembered that in addition to the severe and varied handlings of shipments incident to being placed aboard vessel in this country they are subjected to considerable additional handling in the foreign port, and to interior points in many of the South American countries trans- portation from the coast is by means of river steamer, raft and mule. Generally speaking, bulky packages should be avoided when this is [ HI PACKING SHIPMENTS FOR EXPORT possible, it being far better to divide the shipment into two or per- haps three parts. Packing should be as light as possible, consistent however with the strength necessary to carry to destination, intact and in proper con- dition, the particular class of merchandise shipped, having in mind the numerous exceedingly rough handlings and many changes to which all foreign shipments are subjected. If, to answer this purpose, a heavier case with metal straps and bands is necessary then by all means the packing should be done in this manner. When a foreign buyer suggests that his order be packed in a cer- tain way, it is possible that his request is based upon the rules of the custom house regarding the imposition of duties. As an illustration of this point, shovels when imported into Chile pay no duty if they come into the country complete. If, however, the handles and the metal bases come packed separately duties are imposed upon each. It is evident that a shipment of shovels sent forward in this divided manner will entail upon the part of foreign purchaser the payment of the duties imposed resulting in dissatisfaction and complaint. When merchandise is forwarded to a distributing agent, goods for different consignees should not be placed in the same case unless instructions have been received to this effect, because, when so packed, delivery to any one consignee renders necessary the payment of all duties and the release from the customs of the entire shipment. Where various packages make up a shipment to one consignee, it is advisable to have the same identifying mark appear on all. Con- secutive numbers should be used to distinguish the various packages. To illustrate: If a shipment is prepared for Juan Silveira & Com- pany, Buenos Aires, the identifying mark would probably be: j. s. & co. BAIRES If there were two bales or boxes, they would be marked: j. s. & co. j. s. & co. BAIRES BAIRES Number i Number 2 and these marks and identifying numbers should appear on the Con- sular invoices, the bills of lading, and on the commercial invoices, [15] OUR SOUTH AMERICAN TRADE AND ITS FINANCING With the contents of each, and with the net and gross weights in kilos and the measurements in inches or in the metric system. Note under "General Remarks," on page in, the observations on stenciling of packages. Packing and Import Duties IN CONNECTION with packing, it is important to note that upon imports into most South American countries the duty is levied on the gross weight, meaning thereby the total weight less rough wooden or other container. When container is of a nature the duty on which may be higher than that of its contents, separate duties are levied thereon. Merchandise of various kinds, if packed in the same case or pack- age, runs the risk of being assessed at the rate of the highest taxed article therein. Furthermore, if the description of the goods in declara- tion is such as to render doubtful the classification under which the shipment should be placed, foreign customs authorities always classify under the highest rating. In practically all of our large cities it will be found that consuls of the various South American countries have offices and, before packing shipments, it is advisable for exporters to find out whether the duties to be imposed in the South American country of destina- tion are calculated on the net, legal, or gross weight. The net weight indicates the weight of the article itself, exclusive of its packing or wrapping. The legal weight signifies the weight of the article plus its immediate covering. For example, on merchandise packed in card- board boxes with perhaps a half gross or more of these boxes in a case, the legal weight is the weight of the merchandise plus the card- board container, but not the weight of the outside wooden case. Gross weight means the total weight of the merchandise including the outside container. A recent shipment of neckwear to Chile was refused by the con- signee on the ground that the ties came packed in fancy cardboard boxes, one tie to a box, the container weighing three times as much as the tie itself. The duties in this instance were imposed by "legal weight," and had the merchant accepted shipment it will be seen that for each tie he would have been taxed four times, viz. : the duty on the tie, plus the duty at the same rate on the cardboard box, figured on its weight. [16] FINANCING FOREIGN SHIPMENTS Labels on Merchandise LABELS on the merchandise itself should be in Portuguese on shipments to Brazil, and in Spanish on shipments to other South American countries. This is an important detail to keep in mind, as labels in English mean little or nothing to the general public in South America. These observations should be sufficient to indicate the necessity for the exercise of extreme care, if the interests of foreign clients are to be protected. Our Foreign Trade Department is at the service of our clients for any further information that may be required on this important subject. FINANCING A>J explanation of the various methods of financing foreign ship- ments will be of interest to those not familiar with this pro- cedure. Of these methods, the following may be mentioned: The Open Account THIS is the same in dealing with foreign clients as it is be- tween American clients. Under the open account, the documents are forwarded direct to foreign customer without the formality of a draft acceptance at the time the documents are delivered, payment to be made later on under the conditions existing between the parties to the transaction. Many of the larger South American houses will transact business only upon an open account basis, and some European exporters are acquiescing in this exaction. This, of course, is possible only with houses in first-class credit standing. Commercial Credits IMPORTING under commercial credits is not popular with South American merchants. This exaction on the part of American exporters was possible during the war period, but a permanent foreign trade cannot be developed if this method of financing our exports is to be persisted in. Representatives of American houses in making arrangements with foreign clients for the opening of commercial credits frequently [17] OUR SOUTH AMERICAN TRADE AND ITS FINANCING promise that payment thereunder by purchaser is to be against arrival at destination of the shipping documents. In this connection it should be remembered that where a foreign merchant opens a commercial credit through a bank, under which payment is to be made in this country against shipping documents, the manner of reimbursement to the foreign bank opening such credit rests with bank and not with the representative of the American exporter. A recognition of this principle in connection with foreign com- mercial credits will eliminate considerable dissatisfaction between the various parties to the transaction. Foreign buyers usually refuse to open credits for payment in this country against railroad bill of lading, insisting that payment be made only against delivery to the bank of ocean documents. See reference herein to "Selling Terms on Foreign Orders," also "Credit Information." Unconfirmed or Revocable Confirmed or Irrevocable COMMERCIAL CREDITS are either UNCONFIRMED or CONFIRMED, and, as with Drafts, may be either CLEAN or DOCUMENTARY, and serve as a method of financing foreign shipments. The Unconfirmed or Revocable Credit is one opened by a merchant through a bank in one country to be utilized by transfer through a bank in another country. The beneficiary thereunder is generally the merchant from whom purchase has been made. An Unconfirmed or Revocable Credit is subject to revocation at any time by any of the interested parties, and on this account is not as acceptable to the beneficiary thereunder as is the Confirmed or Irrevocable Credit, particularly on merchandise manufactured to order. A Confirmed or Irrevocable Credit cannot be cancelled during its life unless with the consent of the four parties thereto; the applicant for the credit, his banker, the issuing bank and the beneficiary. The rate of commission charged by a bank on a Confirmed Credit is slightly higher than that charged on an Unconfirmed Credit. The conditions of the Credit indicate whether it is Clean or Docu- mentary. [ 18] THE VARIOUS KINDS OF CREDITS Clean Credit A CLEAN CREDIT is one under which payment to the bene- ficiary is made simply against receipt or against a clean draft (i.e., draft without documents attached). Documentary Credit A DOCUMENTARY CREDIT requires that payment be made by the bank against delivery to it of a full set of documents, or such documents as may be called for under the conditions of Credit. As to what constitutes a complete set of documents, see "Docu- ments" in index. Acceptance Credit THERE is also what is termed an ACCEPTANCE CREDIT, the drafts under which, when drawn by the beneficiary up to six months sight, exclusive of days of grace, are "accepted" by a bank, for pay- ment at maturity. Such drafts, when accepted by a member bank of the Federal Reserve System are eligible for discount in the open market or for rediscount with a Federal Reserve Bank at best rates, in accordance with the Federal Reserve Board's rulings on such acceptances. To establish credits of this nature it is necessary that the purchaser in a foreign country deposit with his local bank the equivalent of the required amount as collateral, or arrange with the bank for accom- modation to provide for the amount involved. The operation of these Commercial Credits, when made available in this country, is as follows: Our branch or correspondent in foreign country through which the credit has been created, informs us of the opening of Credit, and we in turn inform the beneficiary that the Credit has been established in his favor, and also the amount and the conditions under which we shall make payments or accept drafts drawn thereunder. Many large purchases are effected through this medium, the credits being arranged not only by South American firms in favor of firms in the United States, but also by American firms in favor of South American and European houses. Where the foreign merchant does not open a Commercial Credit to cover his merchandise purchases in this country, payment is usu- ally effected through the medium of a draft which is forwarded for [19] OUR SOUTH AMERICAN TRADE AND ITS FINANCING collection, either with or without the shipping and other documents, to our foreign branches or correspondent bank. Revolving Credit WHERE the operations between two parties in different coun- tries are to be more or less continuous, a convenient and economical form, known as a revolving credit, may be established. Under this form of credit, once the conditions are agreed upon, they may be made permanent for future credits by simply embody- ing the conditions under which the amounts may again become avail- able. Through the medium of a credit of this nature, as the amounts drawn thereunder are liquidated, they again become available under the conditions of the original credit without the necessity of further cabling or correspondence. Revolving credits may be divided into three forms. To illustrate: A in foreign country opens a credit in favor of B in this country "up to say $20,000," the conditions of which permit B to draw, as shipments are effected, upon the bank through which the credit is made available, the said bank honoring such drafts when accompanied by documents covering a specific shipment. Upon liquidation by A of the amount drawn by B, such amount again becomes available to be drawn against by B under the original conditions. Should the total amount of the credit become exhausted, no further drawings there- under may be made by B until liquidation by A of all or of a portion of the drafts by B. This explains the revolving feature of this credit, inasmuch as the full credit, or such portions thereof as have been liquidated by A, automatically become available again to be drawn against by B. II The second class of credit under this revolving form permits B, upon A's instructions to the bank, to draw a specified sum in one draft. Upon maturity and payment of this draft by A, the same amount again becomes available to be drawn against by B upon the same conditions which governed the original drawing. [20] COMMERCIAL CREDITS III Under the third class of revolving credit, A in the foreign country permits B in this country to draw in one draft for the full amount involved, whereupon the credit again becomes automatically avail- able for a similar amount and so on indefinitely until the expiration of the time limit specified in the original instructions. This last form of credit is limited as to time; but, as to the amounts drawn thereunder, it is only limited to the units in which the drafts may be drawn, no limit being set as to the maximum amount which may be drawn thereunder. It is also possible to limit drawings to a certain amount during a specified period, to be drawn in one or 5 n various drafts, the original amount again becoming available at the expiration of each of such periods. The revolving credit is very elastic in its application, and may be made to serve any reasonable requirements along the lines suggested. Furthermore, it should be noted that the commission charged by the bank is calculated not upon the full amount for which credit is originally opened, but upon the amount or amounts as availed of thereunder. HOW COMMERCIAL CREDITS ARE OPENED ILLUSTRATION OF A COMPLETE TRANSACTION FROM THE OPENING OF THE CREDIT TO THE FINAL PAYMENT TO BE MADE THEREUNDER A MERCHANT in the Argentine, let us say, has ordered a quan- tity of machinery from a Chicago house. As the Chicago house is not familiar with the credit standing of the Buenos Aires firm, let us suppose that the information in our credit files is not, in this in- stance, of a nature to warrant the extension of time. The Chicago house thereupon cables the Argentine merchant that the order will be entered if a confirmed commercial credit is opened in their favor through The National City Bank of New York. A confirmed credit is required in this instance, as the machinery may be of special manufacture, and the Chicago house, before com- mencing work upon it, wishes to be secured against a possible revoca- tion of the order when perhaps the machinery is half completed. [21] OUR SOUTH AMERICAN TRADE AND ITS FINANCING The Buenos Aires merchant, acquiescing in the demand of the Chicago house, arranges with the Buenos Aires branch of The National City Bank of New York for the opening of, say a $20,000 confirmed credit, to be availed of through the main office of the bank in New York. The Chicago house is made the beneficiary under this credit, which is practically an order on the New York office of the bank, either by cable or letter, to pay to the Chicago house the amount stipulated, generally upon delivery to the bank of a full set of shipping docu- ments covering the shipment. If the credit were an "acceptance credit," the New York office of the bank would "accept" the draft of the Chicago house for, say thirty, sixty or ninety days, as may have been agreed upon. Further particulars as to "acceptance credits'* are given on page 19. Upon receipt at New York of either the cable or letter opening the credit, the bank at New York immediately notifies the beneficiary (the Chicago house in this instance), that such credit has been opened and the conditions upon which payments thereunder will be made. It will be noted upon reference to the definition of a "confirmed credit" that this kind of credit can be revoked only with the consent of the four parties concerned, viz. : the Buenos Aires merchant, the Buenos Aires branch of The National City Bank of New York, the New York office of The National City Bank of New York, and the beneficiary at Chicago. The machinery having been completed, the Chicago house consigns it on railroad bill of lading to its New York agent, or, in the absence of a New York agent, then to some reputable forwarding house at New York, the shipping port, with instructions to secure the ocean bills of lading, the Consular invoice, insurance certificates, and other necessary documents. These documents are thereupon presented to the bank, and if they are in order and meet the requirements of the credit, payment will be made by the bank, usually through the medium of a bank check to the order of the beneficiary. If, however, beneficiary is a depositor of the bank, it is probable that the amount will simply be credited to his account. The Bills of Lading are generally made out "To Order" and are endorsed in blank by shipper, after which they are forwarded to our Buenos Aires branch. "To Order" Bills of Lading, however, are not permissible to Venezuela and Colombia, to which countries it is neces- [22] COMMERCIAL CREDITS sary to consign documents and merchandise direct to consignee. More care is therefore necessary in looking into the credit standing of con- signees in those countries. It will be noted in the transaction we are following that as the bills of lading have been made out "To Order" and endorsed in blank, the bank, having possession of the documents, practically controls the shipment, and the Buenos Aires branch will surrender these evi- dences of title, which we shall assume have gone along on the same steamer carrying the shipment, only upon compliance by the pur- chaser in the Argentine with whatever conditions were agreed upon in the undertaking creating the credit. These conditions may take various forms. If the credit standing of the Argentine merchant is beyond question, it is possible that he has established with our branch a line of credit to cover his com- mercial credit operations, in which event the documents may be sur- rendered to him without collateral security being placed with our branch bank. Should security be deemed advisable, this may take various forms, such as depositing with the branch acceptable securities (bonds or stocks) until liquidation of the obligation, or perhaps the depositing of a note bearing the endorsement of a responsible individual or firm. It may have been agreed that such surrender is to be made upon acceptance by the Argentine merchant of a draft to be drawn upon him for an agreed tenor by our Buenos Aires branch. It may also take the form of a trust receipt to be delivered to the branch by the Argentine merchant, under which title to the merchandise remains in the name of the bank, the proceeds or part thereof, of partial sales to be turned over by the merchant to the branch until complete liquidation of the transaction. There is usually more form than sub- stance to a trust receipt, however, as once the merchandise has been placed in the warehouse of the purchaser it is not an easy matter, in fact it is practically impossible in most instances, to have it so marked as to keep it safely segregated from other merchandise for identification in the event of default or other impediment arising. It is possible that the conditions of the credit, owing to the financial and credit standing of the Argentine merchant, may be broad enough to permit of the documents being forwarded direct to the Argentine merchant by the shipper in the States, in which case such documents should be made out to his order direct. [23] OUR SOUTH AMERICAN TRADE AND ITS FINANCING In the case of an "acceptance credit," the draft drawn upon the bank by the beneficiary (in this instance the merchant in Chicago), will be accepted by the main office of the bank in New York, under the Federal Reserve Act which grants to national banks the privilege of accepting bills of exchange growing out of transactions involving the importation and exportation of goods. This acceptance usually takes the form of a stamp across the face of the draft, with the word "accepted" and the date, with the signature of a duly authorized officer of the accepting bank, and will thereupon be detached from the other documents for return to the Chicago firm, to be discounted by them immediately, if they prefer, or to be held by them until the maturity date thereof. In the case of the "acceptance credit," the conditions at Buenos Aires under which the credit was originally opened quite likely specify that payment is to be made some days prior to the actual maturity date of acceptance at New York, through the medium of a draft to be drawn by our Buenos Aires branch upon the Argentine importer. This draft is given an earlier. maturity date than the Chicago draft, in order to enable the Buenos Aires branch of the bank to cable the funds to New York in time for the New York office to meet its "acceptance" of the draft of the Chicago house. One of the points of difference between the ordinary confirmed documentary credit and the "acceptance credit" is that under the former it is not always necessary for the American shipper to draw drafts, the conditions of the credit usually instructing the bank to pay cash against receipt of documents, the bank taking simply the receipt of the shipper for payments made thereunder. This receipt may consist of the simple endorsement of beneficiary on the bank's check for the amount involved. Under the "acceptance credit," how- ever, the instructions from the bank through which the credit was originally opened to the bank through which it is to be made avail- able, would be to "accept" the draft of the American shipper, under certain specified conditions, such acceptance by the bank protecting the maker of draft in the event of the Argentine merchant becoming insolvent before maturity date. The recourse of the New York bank under such a contingency would be to the foreign bank which origin- ally opened the credit and upon the instructions of which acceptance was made. While the illustration we have given covers an export transaction, [24] COMMERCIAL CREDITS the operation for an import transaction is the same with simply a reversal of the various incidental steps. If, for example, a Chicago merchant is importing wool from the Argentine, he would open through this bank the kind of credit de- sired. This credit would be forwarded direct to our branch bank in Buenos Aires either by mail or cable, as instructed by the Chicago house, and upon arrival at New York of the corresponding wool shipment, the agent of the Chicago merchant at this port, or his forwarding agent, would attend to the Custom House clearance and other requirements, and upon its release would make railroad ship- ment to final destination at Chicago. To this point we have been treating of a foreign shipment under the terms of a confirmed commercial credit and also under the "ac- ceptance credit." Confirmed acceptance credits, like confirmed com- mercial credits, are irrevocable. It is possible, however, to open an unconfirmed commercial credit. This class of commercial credit is subject to revocation at the will of any of the parties thereto and on this account is not as acceptable to American merchants as is the confirmed credit, particularly where the merchandise ordered thereunder is to be manufactured. But now let us consider the shipment from Chicago in the case under illustration as one for which a commercial credit had not been opened, the conditions of the order as placed stating that draft is to be drawn by shipper on the Argentine buyer either at sight, or say at sixty, or ninety days' sight. As in the case of the "acceptance" or confirmed credit, upon com- pletion of the machinery and its shipment to New York, the forward- ing agent in the latter city, acting under instructions from the Chicago shipper, will have secured the necessary shipping and other docu- ments. Draft made payable to The National City Bank of New York covering the invoice value of the shipment, plus charges to be in- cluded, having likewise been forwarded to the New York agent, will be presented by him with the complete set of documents to the New York office of The National City Bank. It is possible that the Chicago merchant has had a line of credit established with this bank for the discount of his foreign drafts, in which event, if the draft is discounted, the account of the Chicago house with the bank will now be credited with the proceeds, or, if we are so instructed, with its full face value. This latter, however, [251 Rio de Janeiro Branch The National City Bank of New York [26] DRAFTS is advisable only where an understanding has previously been entered into between the shipper and foreign client, whereby the latter under- stands that he is to pay the interest and charges involved in this procedure (see reference herein under discounting drafts). Whether draft is for collection or discount, it will be forwarded with the complete set of documents to our Buenos Aires branch for collection. Upon arrival of the documents at Buenos Aires, our branch there will immediately advise the Buenos Aires merchant. The docu- ments in this case, as in the case of the "acceptance credit," are quite probably "To Order" and will be surrendered to the foreign client only upon compliance by him with whatever instructions we have received in this respect from the Chicago shipper. If the draft be a sight draft, documents will be surrendered upon payment. If, how- ever, it be a time draft, the custom in South American countries is to surrender documents upon "acceptance" of the draft by foreign client. In the case of a sight draft, drawn in dollars, the New York funds paid against the surrender of documents will be immediately forwarded to our New York office, where, if the draft was not origin- ally discounted for the Chicago firm, the proceeds will be placed to the credit of their account. If, however, draft is a time draft, the accepted draft (with acceptance by the Buenos Aires merchant) will be held at our Argentine branch until maturity, at which time, upon payment being effected, remittance will be made to New York by the Buenos Aires branch as in the case of the sight draft. DRAFTS DRAFTS ARE OF VARIOUS KINDS, SIGHT AND TIME, CLEAN AND DOCUMENTARY Sight Drafts A SIGHT OR DEMAND DRAFT, as its name implies, is one pay- able at sight, or upon presentation to drawee. Its presentation is made by the foreign bank or branch through which collection is to be made. While a sight draft should be paid immediately upon presentation, "Sight" in many countries, in accordance with custom, has come to mean the date of arrival of shipment at the foreign custom house, and as the mails may carry a sight draft to destination a week or two before the arrival of the slower freighter carrying the shipment, OUR SOUTH AMERICAN TRADE AND ITS FINANCING i>anks in the countries in which this custom prevails have no alterna- tive but to await the arrival of shipment before insisting upon pay- ment of a sight draft or the acceptance of a time draft. The objection to drafts drawn at say 60 or 90 days after sight is that an American house cannot have a fixed maturity date for such drafts until after advice from the foreign bank of actual accept- ance of the item. To obviate this uncertainty, some merchants extend drafts on South America at say 120 days date instead of 90 days sight. South American merchants, however, prefer the sight terms, as the time thereunder does not commence to run until actual "ac- ceptance." Time Drafts A TIME DRAFT is one payable at some stated period after presentation or at a fixed future time, the usance differing in various lines of business, but rarely running beyond 1 50 days sight. Usance or Tenor y Sight and Time THE USANCE OF DRAFTS is either so many days after "sight" or after "date." "Sight" in this case means that the tenor or time commences to run from the date of presentation for acceptance, whereas "Date" usance signifies that time commences to run from the date of draft. Drafts, Clean and Documentary CLEAN DRAFTS are those presented to a bank for collection or discount without bills of lading and other documents covering shipment. Documentary Drafts are those accompanied by the bills of lading and other documents evidencing shipment. Discounting Drafts To DISCOUNT drafts drawn upon foreign clients necessitates the establishing of a credit relation between the American merchant and the discounting bank. This is the usual means whereby concerns finance foreign shipments, as otherwise the funds involved would be tied up until collection in foreign country and remittance to the United States has been effected. Drafts on foreign clients are discounted usually with recourse to [28] DRAFTS the maker. By this is meant that in the event of draft not being met at maturity by foreign drawee, the discounting bank in this country reserves the right to charge drawer with the amount originally ad- vanced, plus interest for the intervening time and any other charges which the item may have incurred. Drafts in Cover for Parcel Post Shipments NOTE reference hereto under "Parcel Post." See index. Dollar Drafts DRAFTS drawn in United States currency should bear the clause "Payable at banks drawing rate on day of payment for c * drafts on New York." Rebating Drafts OUR South American branches conform to the generally ac- cepted custom of allowing 6% for pre-payment of time drafts, unless specifically instructed to the contrary. Rates for Discounting Drafts A FLAT RATE of from ij^% to 5!^% is charged for discount- ing drafts on South America, depending upon the tenor of draft and the time and distance from New York to the country upon which the item is drawn. These rates are made up in this manner for general convenience in calculating, and are arrived at by charging interest for the estimated time elapsing between payment of funds by the discounting bank and date of reimbursement in New York. To illus- trate: if draft be drawn at 90 days sight on Buenos Aires, an addi- tional two months' interest is added to the 90 days to cover the estimated time in transit to and from that point. The bank reserves the right to adjust the interest charge with drawer of draft should the elapsed time be longer than the time estimated. To some countries there is also added the foreign bank's collecting charge for drafts, plus foreign revenue stamp tax on bills of exchange. These charges range from 1/20 to 1/5 of one per cent. Drafts covering export shipments from this country are not sub- ject to a United States revenue tax. [29] OUR SOUTH AMERICAN TRADE AND ITS FINANCING Negotiability of Drafts To RENDER a draft negotiable, the time of payment or matur- ity must be definite. It must be drawn for an amount certain either "at sight," meaning upon presentation, or at a specified number of days or months "after date" or "after sight," or it may be payable at a fixed date. If terms are indefinite, such as "twenty days after arrival of ship- ment," the uncertainty as to the arrival, rendering the date of pay- ment indefinite, would probably vitiate the negotiability of drafts so worded. However, if this wording be desired, the foreign bank might be instructed to hold the draft for presentation for acceptance after actual arrival of shipment, as a fixed maturity date could then be set. Acceptance of Drafts THE ACCEPTANCE of a draft is the written acquiescence on the part of the drawee (the one upon whom it is drawn) to meet pay- ment at the maturity date specified therein and takes the form of writing across the face of draft the word "accepted," with the date of acceptance and the signature of acceptor. A draft when "accepted" becomes the obligation of the acceptor, embodying his agreement to pay the amount thereof at the time and place specified in the body of the instrument. While we are naturally glad to carry with us one of the banking accounts of firms availing themselves of our discount and South American collection services, it is not necessary that an account be actually placed with us in order that a firm interested in foreign trade may avail itself of the important services in this respect which our branches throughout South America enable us to offer. Collection of Drafts FOREIGN DRAFTS are also received by banks on a collection basis, which means that draft, with or without documents, may be deposited with a bank having foreign branches or correspondents, for presentation and collection in foreign country, and remittance of proceeds after payment has been effected. Rates for Collection FOR THIS SERVICE the bank charges a small commission. Rates [30] DRAFTS will be furnished upon application, as they differ for each country and for different cities in the same country. Payment of Drafts PAYMENT FOR DRAFTS received on a collection basis is made to drawer (American firm) upon receipt by us of remittance from the foreign branch or correspondent bank through which collection is made. Such remittances may be made to us by cable, if American firm so instructs when placing draft with us for collection. Privilege of Examination of Merchandise in South America Before Payment or Acceptance of Draft IN SOME South American countries, notably Brazil, it is cus- tomary to permit examination of goods before payment of a sight draft, or the acceptance of a time draft. In countries where such custom is in vogue, our branch bank will allow such examination unless express instructions to the contrary are received from drawer or his agent. In Brazil, drawee is usually assessed an additional 5% on the duties imposed, for the privilege extended by the custom authorities in permitting such examination before actual release of the shipment. Instructions Accompanying Drafts , WHEN depositing drafts for collection, in the event of it being desired to add collection charges, interest and exchange, as well as any other charges, the bank should be so instructed. Difficulty is generally experienced, however, in the collection of drafts accom- panied by such instructions as "Interest at 6% from date of draft until arrival of funds in New York" and "All expenses for account of drawee." Collection would be greatly facilitated and the good will of foreign client retained if American exporters, instead of itemizing all small extra charges in addition to the cost of the merchandise itself, would advance the quoted price a point or two to cover just such items, rendering invoice clean and without any extra charges. American merchants demand that everything be itemized. South American merchants, on the other hand, resent this detail, and on this account it is advisable to follow the lead of European exporters by including such items, wherever possible, in the quoted price. Advise us whether draft is to be protested in case of non-acceptance [31] OUR SOUTH AMERICAN TRADE AND ITS FINANCING or non-payment. Also state whether you wish cable advice of non- acceptance or non-payment, and the reason therefore. Be specific as to instructions regarding surrender to drawee of shipping documents covering goods for which draft is drawn, that is, as to whether, in the event of draft being a Time Draft (30, 60 or 90 days) such bills of lading and other documents are to be surrendered upon acceptance of draft or upon payment. The absence of definite instructions in this respect renders necessary cabling to New York for instructions with the consequent expense. Instructions usually read to the effect that documents accompany- ing Time Drafts on South America are to be surrendered to consignee on "acceptance," as otherwise documents would be held at the bank in foreign country until payment of draft. This, in the case of a time draft, would operate to the disadvantage of a responsible consignee, inasmuch as he would be stopped from withdrawing the merchandise from the custom house during the period the documents remained with the bank. Firms having agents or representatives in the foreign field should likewise advise the bank of the precise powers delegated to such representatives, in order that the bank may know just how far it is to accept instructions regarding any questions which may arise on collection items. If it is intended to confer power upon agent or representative to extend time on' disputed drafts, to rebate for pre- payment, to demand documents of the branch, to dispose of or re- ship the goods in the event of non-payment, etc., such authority should be incorporated in a regular delegated power of attorney, bearing the vise of a Consul in this country of the South American country in which it is to be used. A copy of such power should be deposited with this office to be forwarded to our foreign branch in which it is to be rendered effective. Action by Foreign Bank on Uncollected Items IN THE ABSENCE of a duly appointed agent at destination, it is advisable to leave to the discretion of our branch manager the steps to be taken on uncollected items. Where definite instructions come through to protest, such instructions will, of course, be followed, although in many instances the protest of an uncollected item is un- just to foreign drawee, particularly where the merchandise has not arrived, or has arrived in bad condition or is not what was ordered. [32] EXAMINATION OF MERCHANDISE South American merchants, as a rule, are jealous of their com- mercial probity, and the protest of an item without just cause creates a spirit of antagonism which it is difficult to overcome. If this matter of protest, however, be left to the discretion of our branch bank manager or to the agent in foreign country of the American shipper, the transaction may be amicably adjusted without having recourse to this procedure, with the resultant retention of the client's good will and future business. The item likewise should not come through with instructions "no protest," as the branch manager is thus estopped from using this leverage to compel payment should circumstances render such action advisable. Sale of Merchandise Under Uncollected Items WHERE required, the bank will endeavor to dispose of mer- chandise on uncollected items, employing the services of a local broker for this purpose if necessary. For this service, a small charge will be made by our foreign branch in addition to the broker's commission. EXAMINATION OF MERCHANDISE WHEN PERMITTED IN SOUTH AMERICAN COUNTRIES BEFORE PAYMENT OR ACCEPTANCE OF CORRESPONDING DRAFTS Argentine IN THE ARGENTINE it is not the custom to permit of the examination of merchandise before payment or acceptance of the corresponding draft. However, if there is an understanding between the consignor and consignee to this effect, the branch will be guided by instructions accompanying the draft. Bolivia IN BOLIVIA, examination of merchandise is insisted upon be- fore payment or acceptance of draft. This is possible through applica- tion for special permit from the custom authorities, for which a charge of approximately fifty cents (U. S.) is made. Brazil IT is CUSTOMARY in Brazil to surrender documents for ex- amination of merchandise before acceptance or payment of corre- sponding draft. American merchants, however, appear to insist upon [33] OUR SOUTH AMERICAN TRADE AND ITS FINANCING payment or acceptance before such surrender. Where instructions to this effect are forwarded to the branch they will be carried out, but the impression made upon Brazilian clients by such instructions tends to retard rather than to develop Brazilian trade. European merchants are generally more elastic in their terms, and acquiesce more readily than do American merchants in the customs of foreign countries. In Rio de Janeiro, and at most of the Brazilian ports, this ex- amination involves the release of the shipment from custom; and, in the event of refusal on the part of drawee to accept shipment, goods will be stored by the branch for the account of shipper. In Santos, the authorities permit the examination of merchandise before payment of duties, if declaration is made to the effect that contents of cases are unknown, or that there is doubt regarding the classification of the goods. For this privilege, however, the custom house charges an additional 5% on the duties imposed. It is customary also in Brazil to delay acceptance of correspond- ing drafts until the actual arrival of merchandise. Many large firms refuse to accept drafts, but agree to pay at maturity date. With such firms it is, of course, necessary to word drafts so many days, or months, after date, instead of after sight, in order to fix a definite maturity. Chile IN CHILE it is not customary to permit inspection of mer- chandise before payment or acceptance of drafts, although a custom house broker in good standing can secure a permit to examine the goods, and this may be accomplished in Chile without actually pay- ing the duties imposed. Colombia IN COLOMBIA, merchants usually insist upon examination of merchandise before payment or acceptance of drafts. Ecuador DRAFTS, as a rule, will be paid or accepted in Ecuador only after arrival of the corresponding merchandise, although it is not customary in that country to permit of examination before such payment or acceptance. [34] FOREIGN STAMP CHARGES Paraguay THE CUSTOM in Paraguay (Asuncion) is to permit examination of merchandise before payment or acceptance of corresponding draft. A small tax, however, is imposed by the authorities for according this privilege before definite release of shipment from the customs. Peru IT is the custom in Peru to permit the examination of mer- chandise before the payment or acceptance of a draft, although as a rule this privilege is only availed of by drawee where previous experience gives rise to doubt or to a desire for specific assurance of the quality of goods or proper packing in accordance with instruc- tions. Uruguay URUGUAYAN merchants frequently demand that they be per- mitted to inspect merchandise before the payment or acceptance of draft. This privilege, however, is only accorded upon express instruc- tions from drawer. If drawee insist, cable is forwarded to New York at his expense requesting instructions. In the interest of the reten- tion of good will of client, it is advisable in Uruguay to grant this permission, as there is little doubt of acceptance if the order has been properly filled. Venezuela IT is NOT customary in Venezuela to permit of examination of merchandise before payment or acceptance of draft. FOREIGN STAMP CHARGES IN all South American countries, stamp charges are imposed upon commercial invoices, receipts, drafts, bills of lading, endorsements on same, and upon practically all documents, legal or otherwise. Delegations of power, depositions and such matters are usually required to be written on stamped paper. (See reference under Bills of Lading to taxes on endorsements on Bills of Lading.) [35] OUR SOUTH AMERICAN TRADE AND ITS FINANCING Argentine IN GENERAL, stamp charges on collection items are for the account of drawee. Stamp duties on clean or documentary items are figured at }/% per mille on the amount involved. Bolivia IN BOLIVIA there is a i per mille stamp on all drafts forwarded to that country for collection, as well as upon reimbursement drafts drawn to cover. Brazil STAMPS are required on all commercial invoices, drafts, re- ceipts, bills of lading and upon all legal documents. Stamp charges are usually 2 milreis per conto, the equivalent of approximately 50 cents for every $250 U. S. currency. The stamp required on receipts, however, is fixed at 300 reis, or approximately yj^ cents U. S. cur- rency, irrespective of the amount for which the receipt is drawn. Letters to us of advice of payment of collection items are now subject to a Government bill stamp of 2 per mille. A new stamp law is about to go into effect in Brazil which will materially increase the number and kind of documents to be subject to stamp tax. This, however, will apply more to domestic than to foreign documents. Chile DRAFTS for collection up to $10,000 m/c $0.10 m/c $10,000 to $20,000 m/c .20 m/c Above $20,000 m/c $1.00 m/c On drafts drawn in foreign currency the rate is calculated upon the equivalent in local currency at the rate of the day payment is made. Stamp charges in Chile should be for the account of drawer. It is difficult to collect from drawee an amount in excess of that called for in the draft. Colombia ALL LIQUIDATIONS in Colombia, irrespective of the amount involved, are subject to a bill stamp of four centavos. On drafts, this item is usually for the account of drawer. [36] FOREIGN STAMP CHARGES Ecuador STAMP DUTIES on collections are one per mille. This charge is deducted by the collecting bank from remittance, unless instruc- tions have been received to charge this item to the drawee. Paraguay PRACTICALLY all instruments originating or discharging ob- ligations are subject to a stamp tax of 2 per mille. The stamp tax on drafts is for account of drawer. Peru IN PERU the law requires that stamps be affixed to all in- voices, receipts, drafts, promissory notes, and other paper repre- senting monetary value. This tax is graded to accord with the amount involved. On checks drawn against bank deposits, the stamp charge is 2 centavos for each check irrespective of the amount for which it may be drawn. Uruguay THE STAMP duties on bills of over $1,000, sent for collection to Uruguay, are as follows: J4 per mille for bills of less than 10 days' sight J^ per mille for bills of more than 10 days' sight Stamp charges are usually for the account of drawer. Venezuela IN VENEZUELA, stamp charges are imposed on all documents at the rate of i Bolivar for every thousand Bolivars or part thereof, excepting where the value is less than 25 Bolivars. Where this tax is imposed upon drafts it is generally for the account of drawee. In addition to the stamp charges referred to herein, there is in most South American countries a rubrication stamp charge on books of account. (See index for "Rubrication") [37] OUR SOUTH AMERICAN TRADE AND ITS FINANCING PROTEST OF DRAFTS Advisability of Protest THE OBJECT of the protest of a draft is to improve the legal position of drawer or representative of drawer should non-acceptance or non-payment result in recourse to legal measures. In South American countries fees for legal services as a rule are excessive, and on this account it is advisable on items of less than $ U. S. 1,000 to waive protest. When forwarding drafts to a bank for collection, specific instruc- tions should be given as to whether protest is to be made for non- acceptance or for non-payment, as also if cable advice of the bank's action is desired. It will be noted that in most South American countries if protest is to be filed this procedure must be effected within twenty-four hours after presentation, or after maturity, and on this account there is not sufficient time to cable New York for further instructions. Argentine A DRAFT drawn at sight may be protested for non-payment at any time. If drawn for a fixed time, or if for so many days after sight and accepted, it should be protested within twenty-four hours after date of maturity. The cost of protest, in the Argentine, averages 15 pesos per item. Bolivia CORRESPONDENT banks will protest uncollected drafts, unless instructions to the contrary are received from drawer or from bank forwarding the item for collection. Protest, in Bolivia, may be made for non-acceptance or for non-payment. Protest charges average about 1 1 Bolivianos for each item. Brazil ON ITEMS accepted, but not honored at maturity, cable advice will immediately be given the New York office and bill should be pro- tested. Protest for non-acceptance alone, however, should be avoided. An item may be protested for non-acceptance within five years after presentation except in case of the failure or dissolution of a [38] PROTEST OF DRAFTS firm, under which contingency protest should be filed immediately. Accepted bills should be protested within twenty-four hours after maturity. Promissory notes should be protested within five years if without endorsement. If endorsed, however, protest should be made within twenty-four hours after maturity. Cost of protest depends upon translation charges and residence of drawee. The minimum charge is rarely less than the equivalent of $8 U. S. currency. Chile IN CHILE, a sight draft may be protested for non-payment at any time. A time item may be protested for non-acceptance at any time before maturity, but it must also be protested for non-payment at maturity date. Protest fees in Chile average 25 pesos for each item. Colombia IT is the custom in Colombia to protest for non-acceptance or non-payment unless instructions to the contrary accompany draft. If, however, the draft is for a large amount, and if the interests of drawer will not be affected by the delay incident to cabling for in- structions, cable will be sent. In Colombia, items should be protested within twenty-four hours after presentation. The fee is approximately $5.00 per item. Ecuador SIGHT DRAFTS may be protested twenty-four hours after first presentation. Usance or time drafts should be protested before 3 P. M. of the day following maturity. It is possible to effect protest after the expiration of the periods referred to, but only through lengthy legal proceedings. Protest fees amount to about $8. The protest of an unaccepted item does not improve the drawer's position in Ecuador. Banks, there- fore, in that country will usually protest only unpaid accepted drafts. Paraguay DRAFTS in Paraguay should be protested within forty-eight hours of maturity date. The cost of protest averages $60 Paraguayan currency. [39] OUR SOUTH AMERICAN TRADE AND ITS FINANCING PROTEST, in Peru, should be effected within eight days follow- ing the refusal of payment or acceptance. To protect drawer, it is advisable to protest for non-acceptance. Draft, however, should be again protested in the event of payment being refused at maturity. The term "without protest" or similar notation intended to dispense with protest is given no legal recognition in Peru. The fee for the protest of a draft in Peru is the equivalent of $2.50 American money. Uruguay IF DRAWER of draft has no representative in Uruguay, un- accepted or unpaid items will be protested and cable will be sent New York for further instructions. Drafts should be protested the day payment is refused. Time bills protested for non-acceptance should be protested again at maturity for non-payment. There are no days of grace in Uruguay. Protest fees in Uruguay average $8 gold per item. If documents are in a language other than Spanish, a translation charge is added. Venezuela PROTEST, in Venezuela, for non-acceptance or non-payment of a draft must be made within six months from date of issue. Upon protesting an item, it is necessary to secure the signature of the drawee to a statement setting forth his reason for refusal to accept or pay. Protest fees range from 20 to 40 Bolivars, as stamped paper must be used for this purpose. LEGAL SERVICES IN SOUTH AMERICAN COUNTRIES THE legal profession in South America has not as yet developed specialization in civil and commercial cases as is the case with the profession in this country, the majority of the members of the fraternity acting as general practitioners. Where the premises of suit are sound, it will be found that the same measure of justice will be accorded in the courts of South America as is accorded in the courts of this country. The fact that a case may be decided against an [40] SHIPMENTS FROM THE INTERIOR American client should not create prejudice against South American justice, as the basic statutes and laws covering commerce differ some- what from similar laws in this country and cases are adjudicated under local and not under foreign laws. It is inadvisable to institute legal proceedings where the amount involved is less than the equivalent of $1,000 gold. The legal fee on collection items averages usually about fifty per cent of the amount recovered. We have, in the files of our Foreign Trade Department and at the disposal of our clients, the names of prominent lawyers in practically all of the principal South American cities. SHIPMENTS FROM THE INTERIOR FOR EXPORT AS railroads do not generally issue through bills of lading from interior points covering ocean shipments to South America, firms in the interior of this country having shipments for export should route them to an agent or forwarding house located at the port of shipment, who will secure the necessary ocean ladings and other documents, as well as attend to other details incidental to foreign shipments. It should be remembered, in this connection, that the foreign buyer is in no position to attend to this detail. American shippers unfamiliar with foreign trade frequently assert that the foreign buyer should have an agent at the shipping port. Foreign houses disbursing con- siderable money in this country usually have an agent in New York, but, generally speaking, South American merchants purchase in all parts of the world. It would therefore be to the advantage of the American shipper desirous of building up a permanent foreign trade to arrange with a forwarding house at the port of shipment in this country to attend to the necessary detail. Drafts covering such shipments should likewise be forwarded to such agent or forwarding house to be presented later on to this bank, accompanied with a complete set of documents. If it be intended to include in draft on foreign client the ocean freight and export house commission, drafts are occasionally drawn in blank and forwarded with invoices to the agent or forwarding house with instructions to add to the invoice the extra charges and [41] OUR SOUTH AMERICAN TRADE AND ITS FINANCING fill in the drafts for the full amount, presenting such draft, usually with a complete set of documents, for collection or discount to the bank at New York. Where this procedure is followed it would be well, as an extra precaution, to make draft payable to The National City Bank of New York and to notify the bank at the same time, giving the approximate amount of the draft, and instructions in connection therewith. Many forwarders make a separate draft for the freight and ex- penses incurred on foreign shipments where this item is for a con- siderable amount, though this is usually resented by foreign client. Where this is done, the draft is usually made as a "sight draft" irre- spective of the usance on the draft covering the merchandise, as it is assumed that whatever time may be extended applies to settlement for the merchandise purchased and not to expenses incurred in ship- ment. Shipments to Interior Points in South America CUSTOM warehouses are located at the ports and, before re- lease of shipments for interior points can be effected, it is necessary that duties and charges be paid. On this account, merchants in interior cities have an agent or broker at the port through whom this detail is attended to. Our branch or correspondent bank at the port will, through its custom house broker, attend to the release of shipments when so instructed by consignee. Documents covering interior ship- ments are held at the port by our branch or correspondent bank. Draft is forwarded to a local bank for acceptance or payment by drawee, and upon telegraph advice to our branch or correspondent bank at port of acceptance or payment, release of corresponding shipping documents is made to the agent of drawee, who attends to release from customs and transshipment to interior. DOCUMENTS "1 yl 7~HILE it is of importance in connection with documents cover- V V ing shipments to see that all the necessary papers are forwarded, it is equally as important to see that they are so forwarded as to assure their reaching destination at the same time if not prior .to the arrival of the shipment they cover. Supplemental mail does not close [42] DOCUMENTS until an hour or so before actual sailing time, and advantage may be taken of this if delay has prevented mailing the previous day. Laxity in this respect, as well as carelessness in the drawing of the documents, is frequently the cause of the imposition upon consignees of heavy fines by the foreign custom authorities, with the consequent ill will and antagonism which such carelessness must engender in the mind of the foreign purchaser. Set of Documents As TO what constitutes a complete set of documents covering an export shipment depends upon the requirements of the custom house of the country of destination. Usually, however, this set con- sists of: Bills of lading in triplicate, the original of which is stamped or viseed by the Consul of the country of destination, resident in any of the large American cities; Consular invoice in quadruplicate; a certificate of origin; commercial invoice in duplicate or triplicate; packing list in duplicate or triplicate; insurance certificate; and, on perishable shipments, a health certificate is required which may be secured from the Consulate of the country of destination. Bills of Lading SEE information under Bills of Lading. Consular Invoice CONSULAR INVOICE should be made out in quadruplicate, and thereon should appear the same marks and numbers as appear on the units making up the shipment. These marks and numbers like- wise appear on the bills of lading and on the Consular invoice and on packing list. Insurance Certificate IF SHIPMENT is covered under a blanket or open policy then, in lieu of the policy, an insurance certificate should accompany the other necessary documents. In the absence of this policy or certificate, drawee, in the event of any damage to shipment in transit, may refuse payment or acceptance of the corresponding draft. Where but a few bales, boxes, bundles or packages are shipped, the identifying marks and numbers appearing thereon, and which must [43] OUR SOUTH AMERICAN TRADE, AND ITS FINANCING agree with those mentioned on the Consular invoices and bills of lading, should appear on the commercial invoice, with the measure- ments of the various units in inches, though the metric equivalents are preferable, as also the net and gross weights which it is obligatory to have appear in kilos, the metric unit of weight. Where numerous units are being shipped, instead of embodying this detail on the commercial invoice it may be made upon a separate form, which is referred to as a packing list, in which event as many such lists should be prepared as there are commercial invoices. Under the heading "Metric Weights and Equivalents," in this booklet, will be found the metric system of weights and measure- ments, as also the South American countries in which it is obligatory to use this system when mentioning weights and measurements on shipping documents. There will also be found a comparative table of pounds and kilos which will facilitate the conversion of weights from the avoirdupois to the metric system. To impress upon the minds of those responsible for the preparation of shipping documents the extreme care to be exercised in this par- ticular, it should be remembered that the foreign purchaser, your customer, is liable to a heavy fine being imposed upon him for differ- ences which may occur between the marks, numbers, weights or measurements as appearing on the Consular invoices and those given on the bills of lading, commercial invoices, or packing lists. These should be identical on all documents on which they appear. Failure in this respect may subject the entire shipment to being held up by the foreign custom house, with the consequent delay and an- noyance to foreign client. Where the rule of a foreign custom house dictates that the weights and/or measurements be in the metric system, compliance with this requisite will greatly facilitate the release of shipment from customs. Of the documents for release of shipment from the foreign custom house the most important is probably the Consular invoice. Without this document a foreign client is subjected to considerable delay aside from the extreme annoyance entailed by failure to forward with the other necessary papers this most important document. Combined Shipments on One Set of Bills of Lading WHERE VARIOUS small shipments for different consignees are packed in one case or container for which but one set of bills of lading [44] BILLS OF LADING can be obtained, the shipment should be consigned to shipper's agent or to a general distributor at the port of destination. Under this con- dition, the shipping documents should be sent direct to agent or distributor with instructions to release and store shipment, and to make deliveries to ultimate consignees only upon instructions from the bank through which collection of the corresponding drafts is to be made; and when forwarding such drafts to us, the accompanying instructions should be definite and to the effect that upon payment of a sight draft or acceptance of a time draft our branch or corre- spondent bank should immediately communicate with agent or dis- tributor (giving his name) authorizing release of that part of ship- ment covered by the paid or accepted draft. BILLS OF LADING RULES TO BE OBSERVED REGARDING LADINGS COVERING SHIPMENTS TO THE DIFFERENT SOUTH AMERICAN COUNTRIES BILLS of lading consigned "To Order" are permitted to the Argen- tine, Bolivia, Chile, Ecuador, Paraguay, Peru and Uruguay. Such wording is prohibited to Colombia and Venezuela. Bills of lading to these countries should be consigned direct to client. Consignment of Shipments EXCEPTING when shipping under commercial credits, it is not advisable to consign shipments direct to a foreign bank. Many foreign banks refuse to endorse bills of lading so consigned, with the resultant annoyance and delay. If, for any reason, shipper does not wish to consign direct to purchaser, then the bills of lading should be made out "To Order," or to the order of shipper, with endorsement by shipper in blank. Signatures on copies of bills of lading should be in ink and not in pencil. The duplicate and triplicate copies occasionally come through signed with pencil, and, as the object of these extra copies is to serve in the event of the loss of the original copy, should the signature be in pencil they will not be accepted by the foreign customs authorities. "To Order" Shipments THE ADVANTAGE of a "To Order" bill of lading, to those coun- tries to which such consignments are permissible, is that the bank [45] OUR SOUTH AMERICAN TRADE AND ITS FINANCING with which the corresponding draft has been placed for collection is in a position better to protect the interest of shipper than is possible on shipments to countries the rules of which require that bills of lading be consigned direct to the ultimate consignee. Under a "To Order" bill of lading the collecting bank will surrender the docu- ments only upon compliance by the drawee of the corresponding draft with the instructions conveyed by the drawer (shipper). The disadvantage of a "To Order" bill of lading is that, in the event of the documents not arriving with the merchandise, the corre- sponding shipment cannot always be released by placing a bond with the custom authorities as is possible with shipments consigned to a direct consignee. The advantages, however, to accrue from the wording "To Order" on bills of lading outweigh the disadvantages. 'Number of Ladings As TO THE NUMBER of ladings required, this depends upon the steamship companies; and, when in doubt, it is advisable to consult with them direct, as they have rules governing the requirements of the various countries served by their lines. However, three negotiable ladings usually constitute a set. Tax in South America on Bills of Lading ENDORSEMENTS on bills of lading covering shipments to South American countries are usually subject to a varying tax. In some countries the tax is fixed, the equivalent in American money for each endorsement being approximately $2. In other countries the tax im- posed is calculated on the value of the shipment, as indicated in declaration, the tax usually averaging the equivalent of twenty cents per one hundred dollars of value. As this tax is imposed only upon endorsements actually made in the foreign country it is advisable for American shippers to consign their shipments "To Order" if the custom house of the country to which shipment is made permits of such wording (not permissible to Colombia and Venezuela in South America, to which countries ultimate consignee must appear on bill of lading) or to order of shipper, and such bills of lading should be endorsed in blank by shipper. This will obviate the necessity of endorsement by the bank in foreign country, thus eliminating the endorsement tax. [46] BILLS OF LADING ARGENTINE Release of Shipments from Customs Documents Necessary NEGOTIABLE bill of lading, Consular invoice, certificate of origin. Bills of Lading Manner of Consigning THE WORDING "To Order" or "To Order Notify" is per- missible on bills of lading to the Argentine. This wording with blank endorsement by shipper in this country renders unnecessary an en- dorsement by the bank in the Argentine, thus avoiding the govern- ment bill stamp for endorsements. Bills of Lading Endorsement Tax IN THE ARGENTINE, a stamp tax of 2 pesos is imposed for each endorsement made in the country on bills of lading. Release of Shipments from Customs in the Absence of Documents Formalities Imposed ON DIRECT consignments, if documents are not at destination within eight days after arrival of shipment, consignee becomes sub- ject to a fine of 2% on the duties imposed. If declaration has not been made within sixteen days after arrival, an additional penalty of 5% is imposed. To release shipments under this condition, application on direct shipments must be filed with the custom authorities accompanied with an acceptable bond (usually a bank guarantee) under which is assumed the obligation to produce the requisite documents within ninety days. This application is subject to a stamp tax of $3 Argen- tine paper. On "To Order" shipments, the procedure is the same as with "Direct" consignments, though in this instance, there being no direct consignee, the bond covers the full value of the shipment plus duties as also fine in the event of goods being delivered to an individual or firm not intended by shipper. For further reference to Argentine shipping, see page in. [47] OUR SOUTH AMERICAN TRADE AND ITS FINANCING BOLIVIA Bills of Lading Manner of Consigning "To ORDER" shipments are permissible to Bolivia. Bills of Lading Endorsement Tax THERE is no stamp charge for endorsements on bills of lading covering shipments to Bolivia. Release of Shipments from Customs in the Absence of Documents Formalities Imposed RELEASE of merchandise, from the custom house in Bolivia, can be effected only upon presentation of Consular invoice (five copies are necessary), also the commercial invoice. Merchandise not removed within one hundred and eighty days after entry, in the absence of request to the government to hold for a longer period, is auctioned to cover duties and accumulated storage charges. As Bolivia has no seaport, a copy of the manifest covering the mer- chandise actually landed from the steamer is necessary. This is pro- curable from the custom authorities at the port of discharge, as all Bolivian shipments must conform with this requisite. The absence of Consular invoices renders shipment liable to a fine of 6 Bolivianos for shipments valued at 200 Bolivianos or less, and 4% on the declared value of shipments in excess of this amount. On shipments to Bolivia, all clearances through the Customs should be made through a custom broker who will secure from the port of entry all the necessary clearance documents. As the release of mer- chandise, however, is for the account of consignee this detail will be attended to in the foreign country. Consular invoices to Bolivia must give marks, numbers, class of merchandise, and statement as to its origin and value. For further reference to Bolivian shipping, see page in. BRAZIL Release of Shipments from Customs Documents Necessary ORIGINAL bill of lading, Consular invoice in triplicate and commercial invoice. With these documents, the custom broker pre- [48] BILLS OF LADING pares what is known as a despacho which, with the documents referred to, is sufficient to effect customs release. If the commercial invoice cannot be presented, goods may still be withdrawn, but with the clause "contents unknown." Where it is desired to forward several shipments under one set of documents this may be accomplished by consigning the merchandise to a representative or to a Brazilian firm. The distribution to various purchasers may be made by direct con- signee depositing the necessary shipping documents with the custom house issuing thereagainst delivery orders to the various purchasers which will be honored by the custom Inspector. Bills of Lading Manner of Consigning WHILE bills of lading to Rio may be consigned "To Order" or "To Order Notify," it is preferable to consign shipment "To Order" or to the order of shipper with endorsement by shipper in blank. On shipments coming through consigned "To Order Notify," documents can be negotiated only with the endorsement of the in- dividual or firm notified. Bills of lading should not be consigned to the order of a bank, as such consignment renders the bank liable to the custom authorities for any irregularity in connection with declaration or clearance. On ladings so consigned, it likewise becomes necessary for the bank to endorse the documents to the eventual consignee rendering necessary the affixing of bill stamps, resulting usually in complaint from drawee on draft if branch has been instructed to collect from him the incidental charges. Where, however, consignment is made direct to consignee it is advisable to forward the documents to the consignee direct instead of through a bank, as documents so consigned give the bank no authority whatever over shipment. As indicated heretofore, obstacles are created under such wording where non-acceptance or non-payment of a draft to cover renders necessary the assumption by the collecting bank of steps to protect the interests of the drawer, as control of the merchandise by the bank can be brought about only with the endorsement of the default- ing consignee, and this it may be difficult to secure. Bills of Lading Endorsement Tax ON ENDORSEMENTS on bills of lading it is advisable to omit "for value received" or "on account" terms frequently inserted by [49] OUR SOUTH AMERICAN TRADE AND ITS FINANCING endorsers, as such phrases incur an additional stamp tax. The endorsement tax in Brazil differs at the various ports. At Bahia, proportional bill stamps are imposed amounting to 2$ooo on each conto (i,coo$ooo) of merchandise. At PernambucO) stamps are calculated on the custom appraisal value of the shipment. Tax on merchandise valued up to 300^000 400 reis 301^000 to 500^000 600 reis 501^000 to 8oo$ooo 800 reis 80 1 $000 to i,ooo$ooo i $000 for every additional conto (i,ooo$ooo) or fraction thereon ijooo At Rio, stamp charges are calculated On shipment estimated at 2o$ooo to 250^000 Rs. $500 On shipment estimated at 250^000 to 500^000 Rs. i$ooo On shipment estimated at 500^000 to 750^000 Rs. 1^500 On shipment estimated at 750^000 to i,ooo$ooo Rs. 2$ooo Release of Shipments from Customs in the Absence of Documents Formalities Imposed IN THE ABSENCE of shipping documents, goods may be with- drawn from the Rio customs under the following conditions: With direct shipments the consignee firm, if registered with the Board of Trade, may sign what is known as a Termo de Responsabili- dade. Shipments, if consigned in one name with the clause "Notify another name," can be released by the direct consignee only upon presentation of a bond and an authorization signed by the firm to be "notified." On shipments consigned "To Order Notify," the custom house will permit withdrawal upon the signing of a "Termo de Responsa- bilidade" by the individual or firm to be notified. This, however, must be accompanied with a declaration by a local bank that the release is in order. In the absence of this declaration, a guarantee or a cash deposit will be accepted. At Rio de Janeiro, on shipments consigned "To Order" or "To the Order of Shipper," and endorsed in blank release cannot be effected without the actual presentation of the documents even though guarantee be given. At other Brazilian ports, release may be effected upon the guarantee of a reputable bank or firm. [50] BILLS OF LADING The Termo de Responsabilidade obligates the guarantor to deliver to the custom house the necessary documents within ninety days from date. An extension of an additional forty-five days may be secured upon application. Failure to deliver the documents during this period renders guarantor liable to a fine of 100% of the duties imposed. A separate "Termo de Responsibilidade" is required for each missing document, and is subject to a stamp tax of rs. I2$6oo, the equivalent of about $3.15 American money, and is not cancelled until all the necessary shipping documents have been delivered to the custom authorities. A refund of the fine imposed for lack of presentation of documents within the period stipulated in the bond is possible with the assent of the Minister of Finance. For further reference to Brazilian shipping, see page ill. CHILE Release of Shipments from Customs Documents Necessary THREE BILLS OF LADING, original of which should be stamped by the Chilean Consul at the port of shipment; other copies should be viseed by the Consul. Consular invoice in quadruplicate. Commercial invoice. Insurance certificate in duplicate. See note under "Insurance" on Chilean shipments. Many exporters have both the original and duplicate bill of lading viseed by the Chilean Consul, so that whichever arrives first may be treated as the original. While this procedure involves the added cost of the extra vise it frequently saves considerable time for the foreign purchaser, an element in promoting good will and future business. Consular charges are $3 per invoice on amounts up to $200, and on the excess over this amount. Bills of Lading Manner of Consigning IT is PREFERABLE to consign shipments to the order of the shipper with endorsement in blank. Consignments to Chile, however, may be made "To Order Notify (name of consignee firm)." [51] OUR SOUTH AMERICAN TRADE AND ITS FINANCING Bills of Lading Endorsement Tax No TAX is imposed in Chile for endorsements on bills of lading. As a document, however, the bill of lading incurs a small stamp tax. Release of Shipments from Customs in the Absence of Documents Formalities Imposed IN CHILE, consignee is required to furnish a guarantee for the amount of the commercial invoice, endorsed by a local bank and acceptable to steamship company, in which it is agreed to produce the requisite shipping papers within three months. This, however, is permissible only where shipment comes as a direct consignment. A fine is imposed which, however, is returnable, if within ninety days the requisite documents are produced. "To Order" Shipments GOODS cannot be removed under "To Order" bills of lading until actual presentation of the documents, but any "holder" of a "To Order" lading may secure release of the corresponding merchan- dise through a broker. In Chile, merchandise must be released through a Customs broker whose responsibility to the government is guaranteed by an actual deposit with the authorities of 60,000 pesos. For further reference to Chilean shipping, see page 1 1 2. COLOMBIA Release of Shipments from Customs Documents Necessary BILLS OF LADING in triplicate, Consular invoice (five copies), commercial invoice, and packing list. Bills of Lading Endorsement Tax ENDORSEMENTS on bills of lading are not subject to tax in Colombia. Bills of Lading Manner of Consigning SHIPMENTS to Colombia should be made direct to consignee. At this writing it appears that "To Order" shipments may soon be permissible to Colombia. For further reference to Colombian shipping, see page 112. [52] BILLS OF LADING ECUADOR Release of Shipments from Customs Documents Necessary BILLS OF LADING in triplicate, Consular invoice. Bills of Lading Manner of Consigning SHIPMENTS to Ecuador may be made "To Order," or may be consigned direct to consignee. In Ecuador, merchandise should be manifested within eight days after the arrival of steamer, under penalty of shipment being for- feited to the government. The regulations, however, allow an exten- sion of 1 20 days for this purpose, if a solicitation is made within the eight-day period. Failure to manifest the merchandise within this period renders merchandise subject to sale at government auction without recourse on the part of the exporter. Once goods are mani- fested they must be removed from the custom house within twenty- four hours after notice by the custom house Administrator that clear- ance should be made. Bills of Lading Endorsement Tax THE ECUADORIAN authorities impose no tax for endorsements on bills of lading. Release of Shipment from Customs in the Absence of Documents Formalities Imposed IN THE ABSENCE of documents, importer may secure release of the merchandise by depositing with the collector of custom a bank guarantee that the necessary documents will be produced within 120 days. This guarantee covers the estimated value of the shipment. For further reference to Ecuador shipping, see page 112. PARAGUAY Release of Shipment from Customs Documents Necessary THE BILL OF LADING in duplicate, a certificate of origin and Consular invoice. Shipments via Montevideo, in Uruguay, require Consular invoices to be viseed likewise by the Uruguayan Consul; and, if via Buenos Aires, then by the Argentine Consul. [53] OUR SOUTH AMERICAN TRADE AND ITS FINANCING Bills of Lading Manner of Consigning SHIPMENTS to Paraguay, via Buenos Aires or Uruguay, should be marked in Spanish "Transito para Paraguay," in order to avoid the payment of duties in the Argentine or Uruguay. Shipments may be either "direct" or "To Order." Bills of Lading Endorsement Tax IN PARAGUAY there is no tax covering endorsements on bills of lading. Release of Shipments from Custom in the Absence of Documents Formalities Imposed IN THE ABSENCE of the required documents, shipments may be released from custom upon placing with the authorities an accept- able guarantee or a bond in the sum of $250 Paraguayan currency. This bond is returnable if documents are presented within sixty days. For further reference to Paraguay shipping, see page 113. PERU Release of Shipments from Custom Documents Necessary THE CUSTOM AUTHORITIES in Lima, for the release of ship- ments, require the following documents: One bill of lading approved by steamship agent One consular invoice One commercial invoice One packing list, giving irr detail contents and weight of each package. In the absence of packing list, and where the commercial invoice does not sufficiently detail the contents of each package for the pur- pose of appraisal, the custom authorities make a charge of 5 soles ($2.50) for each case which it becomes necessary for them to open. If, however, the shipment consists of one class of merchandise, a flat charge of 5 soles is made for the combined shipment. Bills of Lading Manner of Consigning SHIPMENTS should be made "To Order," and should be en- dorsed in blank. [54] BILLS OF LADING Bills of Lading Endorsement Tax No TAX is imposed in Peru upon endorsements appearing on bills of lading. Release of Shipments from Custom in the Absence of Documents Formalities Imposed IN THE ABSENCE of the bill of lading, if Consular invoice can be presented, a bank guarantee will be accepted by the authorities for the release of the corresponding merchandise. In the absence of the original Consular invoice, if a copy is at hand, 2% of the value of the shipment as indicated in such Consular invoice must be deposited with the custom house, this amount being returnable upon presentation within 60 days of the original Consular invoice. On European shipments 120 days is granted. Upon special applica- tion, this time may be further extended. In the absence of Consular invoices and other documents, goods may be released on direct ship- ments (not on "To Order" shipments) upon depositing with custom officials 25% of the custom's appraisal of the shipment. Where this appraisal necessitates the opening of cases, an additional charge ot the equivalent of $2.50 per case is imposed. For further reference to Peru shipping, see page 113. URUGUAY Release of Shipments from Custom Documents Necessary BILL OF LADING, Consular invoice, certificate of origin, and a "Transferencia." This last document is secured by the person or firm interested in securing release of shipment. A tax of 50 cents Uruguayan currency, in the form of a stamp, is imposed on each "Transferencia." Bills of Lading^ Manner of Consigning ON "To ORDER" bills of lading, goods will be delivered only to holder of documents. Bills of Lading Endorsement Tax THERE is no tax in Uruguay on endorsements on bills of lading. [55] Pernambtico Branch The National City Bank of New York [56] BILLS OF LADING Release of Shipments from Customs in the Absence of Documents Formalities Imposed AN APPLICATION by the person or firm interested in releasing shipment must be made to the custom house. The steamship company requires a bank guarantee or other acceptable security that the requi- site documents will be produced within a specified period as also against loss for delivery of shipment to wrong consignee. For further reference to Uruguayan shipping, see page 113. VENEZUELA Release of Shipments from Custom Documents Necessary BILL OF LADING in duplicate and Consular invoice, although it is possible in Venezuela to secure release of shipment upon pre- sentation of a duly viseed Consular invoice. Under this condition, however, a bond must be placed with the custom covering the estimated value of the shipment and a document must be signed obligating the individual or firm making the release to produce the missing documents within 60 days. Bills of Lading Manner of Consigning "To ORDER" shipments are not permissible to Venezuela. Bills of Lading Endorsement Tax STAMP CHARGE is imposed for endorsements on bills of lading. In Venezuela, as shipments cannot be consigned "To Order," the custom is permissible of selling the bill of lading necessitating an endorsement from direct consignee to purchaser. To avoid the stamp charge for the endorsement, however, the direct consignee can give a letter of authority to purchaser which, strange though it may seem, will be accepted with the bill of lading by the custom authorities without an endorsement on the instrument itself. Release of Shipments from Custom in the Absence of Documents Formalities Imposed IF DOCUMENTS are not presented within four days after arrival of shipment, release may be effected in Venezuela by placing with the authorities an acceptable bond in the value of the merchandise [57] OUR SOUTH AMERICAN TRADE AND ITS FINANCING covering the presentation within sixty days of the requisite docu- ments. A fine of 25 Bolivars is imposed for non-presentation of documents within the four-day period and an additional fine of 5 Bolivars accrues daily until delivery or until the expiration of the sixty-day period at the termination of which the shipment is con- sidered as abandoned and is disposed of at government auction. For further reference to Venezuelan shipping, see page 113. GOODS IN CUSTOM WAREHOUSE PERIOD AND CONDITIONS UNDER WHICH MERCHANDISE MAY REMAIN IN THE CUSTOM WAREHOUSE AFTER ARRIVAL IN SOUTH AMERICA Argentina AFTER compliance with the custom regulations, merchandise may remain in the custom warehouse for one year with the privilege of renewal for an additional year. Storage charges, however, accrue at the following rates: Thirty-seven and one-half cents Argentine gold monthly per i ,000 kilos, if duties are to be assessed on the value of the goods. Seventy-five cents Argentine gold monthly per 1,000 kilos, if duties are to be assessed by weight. Forty-five cents Argentine gold per cubic meter, if duties are to be assessed by value. These charges cover for the first, second and third months. Com- mencing with the fourth month, goods still remaining in the custom are assessed a 50% additional charge figured on the above rates, this charge to continue to and including the seventh month, after which the charge is increased to 100% of the rates quoted. Accrued charges covering drayage, storage and duties need not be paid until actual removal of the goods. Merchandise not intended for storage must be removed from the custom warehouse within 45 days after arrival. Failure to clear within this period renders shipments liable to a fine of 5% of their appraised value, plus accrued storage charges. Bolivia IN BOLIVIA, the time allowed for the withdrawal of merchan- dise from the custom house is 180 days. This period, however, may [58] GOODS IN CUSTOM WAREHOUSE be extended upon application. In the absence of application being made for this purpose, shipments become liable to government auction to cover duties and accumulated storage charges. Brazil As THE RULES governing the period during which merchandise shipments may remain in the custom warehouses differ at the various Brazilian ports, we have thought it advisable to incorporate the con- ditions governing at the ports of Bahia, Pernambuco, Porto Alegre, Rio de Janeiro and Santos. The rules governing at Santos apply equally to Sao Paulo. Bahia THE SYSTEM of graduated warehouse charges in Bahia, cover- ing merchandise left in the custom warehouse, differs somewhat from that prevailing at other Brazilian ports. Thirty days are given in which to remove shipment. If goods are removed within this period, no charge is made. However, in the event of shipment being left with the custom for time in excess of this period, a charge is made of i% of the official value covering this first month, 3% for the second month, 6% for the third month, with a further 3% for each addi- tional month. Pernambuco IN PERNAMBUCO, the time limit for the removal of merchan- dise from the custom is 6 months. During this period, however, storage charges accrue at the following rates: i month or less, i% to 2% on custom appraisal value 1 to 2 months, 3% to 6% on custom appraisal value 2 to 3 months, 6% to 12% on custom appraisal value 3 to 4 months, 12% to 24% on custom appraisal value 4 to 5 months, 15% to 30% on custom appraisal value 5 to 6 months, 18% to 36% on custom appraisal value The higher rates appear to be imposed upon merchandise such as hardware, cement, paper, wool, leather and machinery. At the termination of the six-month period, merchandise will be sold at auction to reimburse the custom for duties and storage charges, the excess, if any, being held subject to claim. The rule as to the auctioning of merchandise at the lapse of 6 months is somewhat elastic [59] OUR SOUTH AMERICAN TRADE AND ITS FINANCING in its application at Pernambuco, and merchandise is frequently held for a longer period, in which event the warehouse fee is increased by 3% for each additional month. Porto Alegre THREE DAYS are allowed in Porto Alegre for the payment ot duties, this time dating from the despatch of the merchandise. Even though merchandise may be immediately removed from the custom, a charge for one month's storage is made excepting on bulky mer- chandise which remains on the docks. An additional storage charge is made on merchandise remaining in the custom house for a period of more than a month. Rio de Janeiro No FINE is imposed for the non-removal of merchandise from the custom. Storage charges, however, accrue and are as follows: ist month (or fraction thereof) i% of official value 2nd month (or fraction thereof) iK% of official value 3rd month (or fraction thereof) 2% of official value 4th month (or fraction thereof) 3% of official value 5th month (or fraction thereof) 3% of official value 6th month (or fraction thereof) 3% of official value Very bulky merchandise is assessed "double storage." If, at the end of 6 months, merchandise is not withdrawn it is usually sold at auction by the custom authorities, and the proceeds are applied to the liquidation of the accrued storage charges. Any surplus may be claimed by the holder of shipping documents or by shippers. Inflammable Material and Perishable Goods. Goods of this nature are handled under special custom provision under which they may be immediately removed. For this purpose, it is necessary to secure a document known as a "despaco sobre agua," under which release from the custom authorities may be effected within 48 hours after arrival. Santos STORAGE is charged for the first month or any part thereof, at the rate of 2%, calculated on the declared value; 4% for the second month; 8% for the third month; 16% for the fourth month; con- [60] GOODS IN CUSTOM WAREHOUSE tinuing to double up to the sixth month, at the end of which time if merchandise is not removed the custom authorities auction the goods to cover the accumulated charges. Machinery, if removed from the custom house within three days after its arrival, is exempt from storage charges. If not despatched within this period it becomes subject to tax. Chile IN CHILE, a tax of 4% on the duties imposed is collected on all imports whether removed immediately or permitted to remain in the custom warehouse for the legal period of 3 months. The second 3 months, or part thereof, is subject to an additional 4%, or a total for this period of 8%; and for the third quarter an additional 4%, or a total for this period of 12%. Merchandise not removed at the end of 12 months is usually auctioned by the government to cover accumulated charges. During 1918 and I9i9> owing to the congested condition of the custom house and storage warehouses, goods were auctioned at the end of 45 days. Ecuador IMPORTER has 8 days in which to make clearance. If goods are not cleared within this time, the importer becomes subject to a fine of from 10 to 100 sucres, the non-payment of which results in the forfeiture of the shipment. This period, however, upon application may be extended for 120 days, at the expiration of which time, in the event of clearance not having been effected, the shipment is considered as "abandoned" and the merchandise will be sold at public auction without recourse on the part of importer or shipper. Paraguay MERCHANDISE remaining in the Paraguay custom storage be- yond 30 days is subject to storage charge. Combustible or perishable merchandise or merchandise subject to deterioration should be removed within 48 hours. Peru IN PERU, there is a free period of 8 days after the arrival ot steamer for which no charge is made for storage in custom house. [61] OUR SOUTH AMERICAN TRADE AND ITS FINANCING Beyond this period, the charge made for warehousing is i % of the duties imposed for the first month, and % of i% for every additional month. For the storage of jewelry and articles of exceptional value, if subject to duty, the monthly charge is J^ of i% calculated on the declared value. On articles free of duty, the warehouse charge is 5 centavos per 100 kilos for the first 30 days, and 3 centavos for every succeeding 3o-day period. (The Peruvian centavo is the equivalent of approximately ^ cent U. S.) Goods left with the custom au- thorities and unclaimed after 3 years are sold at public auction, the proceeds in excess of the amount due to the custom authorities for duties and warehousing being held subject to the order of consignee. On articles entered for immediate consumption, but which are free of duty, if not removed within 48 hours after clearance, a demurrage charge is made of 10 centavos a day per package, or per 100 kilos, if the shipment is imported in bulk. On dutiable goods, the charge is figured at 3% of the duties for the first month, i% for the second month, and %% f r every succeeding month. The custom authori- ties assume no responsibility for loss by fire or otherwise. Insurance against fire by the importer is compulsory (pilferage insurance cannot be secured in Peru), and if he fails to cover, the goods will be insured by the custom authorities for the account of the importer. Uruguay MERCHANDISE arriving in Uruguay for consumption in the country may remain in the custom warehouse for one month with- out payment of storage charges. After one month storage accrues at the rate of j/g% per month, on the appraised value of the merchandise. On bulky material, the storage charge is eight centavos gold per month per 100 kilos. On other merchandise the charge is iJ4% P er annum ad valorem. If payment is not met promptly, goods are dis- posed of at government auctions. Merchandise in transit through Uruguay may remain in the cus- tom warehouse for one year free of storage charges; but, if at the expiration of this period, it has not been removed storage is charged from the date of arrival at the rates given herein, these charges to be collected from claimant of the shipment or to be deducted from the auction price received should the government so dispose of it. [62] STORAGE FACILITIES Venezuela IN VENEZUELA, if documents have not been presented within 60 days after arrival of shipment, the merchandise is disposed of by the government. If documents are not presented within 4 days after arrival, a charge of 25 Bolivars is made for the first overdue day, with an additional charge of 5 Bolivars for every additional day following until the expiration of 60 days, when shipment is considered as abandoned. STORAGE FACILITIES IN SOUTH AMERICAN COUNTRIES OUR branch and correspondent banks make a small commission charge for service rendered in connection with the warehousing and insuring of merchandise under uncollected drafts held for the account of American shippers. This service renders necessary the pay- ment to the bank of the duties imposed plus storage, brokerage and insurance charges. The commission charged by the bank is variable, depending upon the disbursements involved, as also upon the services and time required to complete the transaction. Argentina STORAGE conditions in the ports of the Argentine, both govern- ment and private, are adequate to meet the demand. Warehouses for incoming shipments are under government control. The average cost of storage is given herewith: If goods have been declared according to value 25 cents Argentine gold for each $100 Argentine gold, plus an arbitrary 50% additional charge. If goods have been declared according to volume 30 cents Argentine gold per cubic meter, plus an arbitrary 50% additional charge. If goods have been declared by weight 50 cents Argentine gold per ton (1,000 kms.) plus an arbitrary 50% additional charge. In private warehouses, storage charges average about $1.50 Argen- tine paper for 1,000 kilos, or Ji.io paper per cubic meter or fraction thereof. Bolivia THE GENERAL warehouses in Bolivia are controlled by the government. OUR SOUTH AMERICAN TRADE AND ITS FINANCING 'Brazil AT MOST Brazilian ports there are numerous public and private warehouses, the names of which we have on file in our Foreign Trade Department at New York. The majority of the Brazilian warehouses are used for the storage of coffee, although arrangements may be made for the storage of general merchandise. During the coffee season the available space is usually insufficient to cover the demand. For the purpose of establishing insurance rates, warehouses in Brazil have been classified as follows: Class A. Warehouses not storing dangerous goods Class B. Warehouses accepting dangerous goods Special. General warehouses. For insurance rates governing these warehouses, see index for "Insurance." The storage charges in Brazil are based usually upon the cubic meter, and average the equivalent of about 35 cents U. S. Chile THE WAREHOUSES in Chile are under private control. Our branch at Valparaiso has rented a floor in one of the safest ware- houses, in which is stored merchandise on uncollected drafts. There is no bonded warehouse in Chile. The average cost of warehousing is 5 pesos per month per case. Colombia THE WAREHOUSE facilities, both government and private, are poor in Colombia. Ecuador ASIDE from the custom warehouse there are no public ware- houses in Guayaquil. There are a number of private warehouses, however, and it is possible to arrange with the owners for storage therein. Storage charges by the custom house are figured at 9 cents per cubic foot. Charges for private storage are calculated on approxi- mately the same basis. Paraguay THE WAREHOUSES in Paraguay are under government control, and are in poor condition. INSURANCE Peru THE STORAGE facilities at Callao, the port of Lima, are inade- quate for the merchandise moving through that port and as a conse- quence, during congested periods merchandise may remain in lighters and unprotected for weeks at a time. On this account bulk cargoes such as coal, lumber, cement, etc., which can be quickly cleared are given preference by the port authorities over shipments which neces- sitate a more thorough inspection. There are no private bond ware- houses in Callao or Lima, and there is no recognized public ware- house. Most of the large importers have their own warehouses, and during periods of the year when the movement of merchandise is not heavy, space may be acquired for temporary storage. The rates for this accommodation vary, inasmuch as the proprietors of these store- houses do not solicit this class of business. Uruguay THE STORAGE facilities at Montevideo are restricted to those provided by the custom department for incoming goods. Venezuela IN CARACAS, there is no government storehouse and there is but one private warehouse, the charges for storage in which vary with the class of merchandise stored. Some of the local banks have storage space which, however, is restricted to the storing of mer- chandise upon which advances have been accorded. INSURANCE IN SOUTH AMERICA ON MERCHANDISE UNDER UNCOLLECTED DRAFTS INSURANCE on foreign shipments where possible should cover theft as well as ordinary marine risks, and policy should be issued to cover 10% in excess of the invoice value as also a period of from 10 to 30 days after arrival at foreign port, preferably 30 days for Chilean shipments; in other words, from warehouse of shipper to warehouse of purchaser. This is necessary, as otherwise our branch or foreign correspondent bank holding the documents is forced to cover for the period intervening between the receipt and surrender OUR SOUTH AMERICAN TRADE AND ITS FINANCING of documents and the attempt to collect the cost of this insurance from purchaser usually results in friction. BLANKET POLICIES WHERE shipments are insured under blanket policies, a certificate should accompany the shipping documents, as otherwise importers frequently refuse to accept drafts. This certificate is required so that they may see just what risks are covered thereby. Argentina GOODS PLACED in private warehouse by the bank, or shipments specifically declared on deposit with the custom authorities are in- sured by the bank against fire risk for the account of whom it may concern. Insurance covering pilferage, however, cannot be secured covering merchandise in the custom warehouse. In the Argentine, there are local companies as also branches of British and American companies. The annual premium on merchan- dise in custom depots is i%. In the average private warehouse the premium varies between 3 and yj^ per mille, although in the best warehouses the premium is 25 per mille. Bolivia IN BOLIVIA there are branches of several foreign insurance companies. There is but one local company. In the local company the rate is 4 o/oo per annum. Brazil AT THE various ports of Brazil there are local companies, as well as branch offices of reliable foreign insurance companies. The rates range about as follows, the classification referring'to the class warehouse in which merchandise is stored. Government and private warehouses at Rio: Class A Insurance rates, J^% to Y%% Class B Insurance rates, %% to %% Special Insurance rates, %% to 2 % Insurance may be effected for a period of three months if desired. In Rio there are 39 companies engaged in the business of insuring warehoused merchandise. Nineteen of these companies are local, 12 English, 3 German, 2 Portuguese, i French, i Argentine, and i Swedish. [66] INSURANCE Chile ON CHILEAN shipments it should be noted that insurance should specifically cover 30 days at Valparaiso, particularly on mer- chandise transshipped at Panama. The usual y-day clause at Val- paraiso is not sufficient. Our Chilean branches see that merchandise placed by them in storage is covered by insurance, if this detail has not been arranged for by shipper or consignee. All merchandise for which our Chilean branches hold documents is covered by insurance whether removed from custom house or not. Policies, however, do not cover theft. Losses along the West Coast of South America from pilferage, par- ticularly in textiles and silks, have become so prevalent that many insurance companies will not issue "theft insurance," and the rates of companies which still carry this risk are prohibitive. There are a few local insurance companies in Chile, but the bulk of the business is placed with branch offices of foreign companies. The average cost of insurance in these companies is 4 o/oo for a period of 3 months. Colombia IN COLOMBIA there are branches of various foreign insurance companies and some local companies. The average cost of insurance on merchandise in warehouse is Ecuador MERCHANDISE in custom warehouses or stored in private ware- houses may be insured against fire, as also against earthquake and volcanic eruptions. Insurance companies in Ecuador are all branches of foreign companies. In Guayaquil there are represented nine British companies and one American company. Rates vary, but the average rate is 4^% m private warehouses and 6J^% in the custom ware- house. These rates appear to be excessive. Paraguay IN PARAGUAY there are branches of European and Argentine insurance companies. Peru MERCHANDISE warehoused at Callao may be insured against fire. There are 8 insurance companies in Callao, the rates of which OUR SOUTH AMERICAN TRADE AND ITS FINANCING through a protective agreement are the same. The rate on merchan- dise stored in the custom warehouse at Callao is %% annually, figured on the valuation. The rate on goods stored in private houses is %% annually. Goods stored for a period of longer than 8 months and up to a year pay the yearly rate. The rate for a period under 8 months is J^ of the full year's premium per month. Uruguay MERCHANDISE, when permitted to remain in the custom ware- house, is insured by the bank if we hold the documents. Only fire insurance on such merchandise, however, is procurable in Montevideo. The average cost of fire insurance in Uruguay is 7^ per mille per year. On insurance premiums the government tax is 4%. Venezuela MERCHANDISE in warehouse in Venezuela may be insured in a local company which, however, reinsures in one of the English com- panies. The average cost of insurance is He per mille figured on the value of the merchandise covered. POSTAGE RATES AND CONDITIONS IN SOUTH AMERICAN COUNTRIES First Class LETTERS AND POSTAL CARDS. Postage on letters is five (5) cents for the first ounce or fraction thereof, and three (3) cents for each additional ounce or fraction thereof. Except. British Guiana, where the rate is two (2) cents for each ounce or fraction thereof. POSTAL CARDS. The postage on a single card bearing a written communication is two (2) cents for each ounce or fraction thereof. REGISTERED. Register all valuable matter. Registration fee ten (10) cents additional. Third Class PRINTED MATTER. Embraces all newspapers, periodicals, books, pamphlets, sheet music, cards, proofs of printing, etc. The postage is one (i) cent for each two (2) ounces or fraction thereof. [68] MAIL TIME The limit of weight is four pounds six ounces (4 Ibs. 6 oz.). The limit of size is eighteen (18) inches in one direction, except printed matter in rolls which may be thirty (30) inches in length and four (4) inches in diameter. REGISTERED. All valuable matter. Registration fee ten (10) cents additional. Fourth Class MERCHANDISE. (See special reference in Index to "Parcel Post.") MAIL TIME TO PRINCIPAL CITIES OF SOUTH AMERICA THE time given to the South American cities mentioned in this table is the sailing or transit period. Consideration, however, should be given to the possibility of 10 or 15 days intervening between the date a letter is posted and the actual sailing date of steamer. This allowance is applicable likewise to sailings from South America, and should be considered when calculating the possible time to elapse before a reply may be expected to South American mail. MAIL TIME TO ARGENTINA BUENOS AIRES. ROSARIO.. . Day. 26 28 BOLIVIA LxPAz 25 SUCRE 25 ORURO 25 BRAZIL Rio DE JANEIRO 18 SANTOS 21 BAHIA 15 PERNAMBUCO 14 PORTO ALEGRE 25 SAO PAULO 20 PARA 16 CHILE SANTIAGO 29 VALPARAISO 28 PUNTA ARENAS 40 Reply may be expected in DJI 75 80 75 75 75 65 65 60 55 80 65 60 75 75 no COLOMBIA BOGOTA 23 MEDELLIN 23 ECUADOR QUITO 15 GUAYAQUIL 15 GUIANAS BRITISH 12 to 15 FRENCH 1 2 to 1 5 DUTCH 12 to 15 PARAGUAY ASUNCION 35 PERU LIMA 18 CALLAO 17 URUGUAY MONTEVIDEO 25 VENEZUELA CARACAS 12 MARACAIBO 14 Reply may be expected in Days 45 45 [69] OUR SOUTH AMERICAN TRADE AND ITS FINANCING PARCEL-POST TO SOUTH AMERICAN COUNTRIES Fourth Class MERCHANDISE PARCEL-POST. Postage is twelve (12) cents for each pound or fraction thereof. Greatest length, three (3) feet six (6) inches. Greatest length and girth combined, six (6) feet. REGISTER. All valuable matter. Registration fee ten (10) cents additional. Except. That parcel-post to the following countries cannot be regis- tered: French and Dutch Guiana, Argentina, Uruguay and Paraguay. Parcel-Post FOR SOME unaccountable reason, the South American coun- tries having treaties with the United States relative to the inter- change of parcel-post shipments do not appear to regard this medium with favor, if one may judge by the vexatious delays to which such shipments are subjected at destination as well as the extra taxes and duties imposed thereon. The bank cannot handle such shipments, owing to the complexity of the exactions by the foreign custom authorities and the obliga- tions assumed or thrust upon the bank where the packages are sent direct to our branches. There is no protection to sender of packages where parcel-post shipments are sent in care of a bank, inasmuch as only the direct addressee and not the individual or bank in whose care it is sent will be recognized by the custom authorities for its release. It is possible, of course, to have the direct addressee confer power of attorney on the bank for this purpose, but this would defeat the very purpose the sender has in mind in forwarding such ship- ments in the bank's care. Foreign houses frequently experience difficulty with the custom authorities when American goods arrive in packages which bear the retail selling price. All such price marks should be removed. REGULATIONS GOVERNING PARCEL-POST SHIPMENTS FROM THIS COUNTRY TO THE VARIOUS COUNTRIES OF SOUTH AMERICA Argentina OBSERVATIONS. Limit of weight for parcels 22 pounds. Parcels cannot be regis- tered. Two copies of the custom declaration (Form 2966) must be attached to [70] PARCEL-POST each parcel and the name and address (street and number as well as city) of the addressee must be written on both copies as well as on the parcel itself. PARCELS are accepted for mailing, even though sealed and closed against inspec- tion, provided they conform to other conditions prescribed. PROHIBITIONS. Triangular daggers or stilettos and their blades; iron knuckles. No CONSULAR INVOICE or other documents are necessary on parcel post shipments to the Argentine. It is advisable, however, to forward with such packages a "Declaration," which may be secured through an Argentine Consul. Stamp charges and duties on parcel-post shipments are excessive in the Argentine, amounting in some instances to more than the actual value of the merchandise. In addition to custom duties, the taxes imposed on parcel-post shipments are: i. $2.69 Argentine paper if the package is addressed to an in- dividual (not a firm), and if the contents of the package are not dutiable. 2. $4.69 Argentine paper if addressed to an individual (not a firm), and if the contents of the package are dutiable. 3. $4.69 Argentine paper if addressed to a firm, whether the con- tents of package are dutiable or not. Bolivia OBSERVATIONS. Limit of weight for parcels u pounds. PROHIBITIONS. Articles, the sale of which is a state monopoly. Tobacco in any form; plants and shrubs in baskets; gold and silver substances, jewels and other precious articles; nickel or silver coins, and counters and chips indicating value. The importation into Bolivia of guns and of arms and ammunition is subject to restrictions prescribed by the customs regulations. PARCEL-POST shipments to Bolivia must be accompanied with a "Declaration" from a Bolivian Consul. There is a warehouse tax of the equivalent of about 25 cents U. S. money on all packages coming through by this medium. There is also a special fee of 3 Bolivianos (the equivalent of about $1.25 U. S.) covering documentary solicita- tion for release on all parcel-post shipments appraised at 200 Boli- vianos or less. On appraisements in excess of this amount, this Con- sular fee is collected at the rate of 2% on the appraised value. On appraisements of 10 Bolivianos or less no Consular fee is charged. Brazil OBSERVATIONS. Limit of weight for parcels, 21 pounds. The parcel-post service to Brazil is strictly limited to the cities of Curity ba, Rio de Janeiro, Sao Paulo, Bello Horizonte, Bahia, Pernambuco (Recife), and Para (Belem). [71] Map of South America showing Branches [72] f The National City Bank of New York [73] OUR SOUTH AMERICAN TRADE AND ITS FINANCING PARCELS addressed to other destinations in Brazil can only be delivered if arrange- ments have been made by the addressee for their transmission from one of the seven above-mentioned offices to the office of destination; and the United States Post Office Department can only accept parcels for delivery beyond said Brazil offices of Curityba, Rio de Janeiro, Sao Paulo, Bello Horizonte, Bahia, Pernam- buco (Recife) and Para (Belem) at the sender's risk. Such parcels must be in dorsed by the senders, on the address side: "Sender's Risk" or "Delivery Ar- ranged." Parcels addressed "Poste Restante" are unmailable. The parcel-post convention with Brazil provides as an exceptional measure that fatty substances, liquids and those which easily liquefy may be included in par- cels exchanged under the convention, but ONLY when packed so as to thoroughly protect other articles from damage in case of accident. Packages containing prospectuses and advertisement bills, e. g., engravings, printed books, periodical publications, reviews, geographic maps, bound music sent separately or in pamphlet form, are subject to an entry duty of 150 reis (5 cents) if the amount shipped weighs more than 2 kilograms (4.4 Ibs.) in weight per addressee. No CONSULAR INVOICE or other documents necessary. Brazil is a country in which particular difficulty is experienced with shipments via parcel-post. Bahia THERE is no special tax in Bahia on parcel-post shipments. Pernambuco THIRTY DAYS is the usual period required for the custom re- lease of parcel-post shipments. To effect clearance, it is necessary to employ the services of a custom broker, and where the bank is in- structed by drawer of corresponding draft to "Collect all charges" annoyance and delay frequently is caused through the refusal of drawee to defray the various expenses incurred in effecting release. These ex- penses at Pernambuco are exorbitant and consist of: Bill stamp on legal form delegating to broker authority to retire the shipment, 600 reis. Clearance stamp per conto or part thereof, 2$ooo. Post office charge calculated on weight per pound, 260 reis. Broker's commission, average per package, 5 $000. Custom duties figured on weight or ad valorem. Registered packages, in addition to the 260 reis per pound, are subject likewise to an additional stamp charge of 300 reis. Porto Alegre PARCEL-POST packages for interior points and some coast ports in Brazil are held at the custom house at the port of disembarkation, [74] PARCEL-POST a notice being sent by the custom authorities to addressee to appear personally, or through his agent, at the examination of the contents. Such agent at port, in order to act, must be supplied by addressee with a power of attorney duly drawn before a notary public, as other- wise authority to release will not be recognized. On this account, and in order to facilitate delivery of packages sent by this medium it is advisable when addressing parcel-post packages to clients residing back from the coast to arrange with them to have such packages addressed direct to some one at the port who, after release, can for- ward package to client. Rio de Janeiro MAXIMUM weight 6 kilos, the equivalent of 13 pounds. Great- est length 3 feet 6 inches. Greatest length and girth combined 6 feet. If cylindrical in form, length should not exceed 6 feet. Accompanying each parcel should be a list containing a complete description of the parcel, its value, contents, name and address of remitter. The con- tents of parcel-post packages are subject to a stamp tax of 400 reis (the equivalent of 10 cents) per pound. Parcel-post packages are like- wise subject to the usual storage charges while in the custom ware- house of i% of official value for the first month or fraction thereof, X H% for the second month, 2% for the third month, and 3% for the fourth month. Santos THE CONTENTS of parcel-post packages are subject to the same duties as merchandise sent on ocean bill of lading. Package should not exceed 60 cms. on any side, canes and umbrellas excepted, and must not exceed 5 kilos in weight. Parcels may be cleared by con- signee or his authorized agent. Chile OBSERVATIONS. Limit of weight for parcels n pounds. PROHIBITIONS. Articles injurious to health; firearms, except upon presentation by the addressee of a permit issued by the governor of the province; cinemato- graphic films. No SPECIAL TAX or excess duties are imposed on parcel-post packages, such shipments being subject to the same duties as are imposed upon freight shipments. However, all merchandise entering Chile, whether [75] OUR SOUTH AMERICAN TRADE AND ITS FINANCING by parcel-post or otherwise, must be covered by a Consular invoice in quadruplicate. These forms may be secured at the Consular office in any large American city, the charge being 30 cents per set of four forms. On a parcel-post shipment, the value of which is less than |25, no Consular fee is charged, although a set of Consular invoices is necessary. For shipments by this medium, the value of which is between $25 and $200, a Consular fee of $3 is charged for each Con- sular set of four forms covering individual shipments. On amounts in excess of $200, an additional %% is charged, figured on such excess. To secure release from custom of parcel-post shipments, an appli- cation must be made by consignee to the post office, the fee for which is 40 cents Chilean plus one Chilean peso for each package removed. If shipment is one for which a Consular invoice is necessary, an additional 40 cents Chilean is imposed. Colombia OBSERVATIONS. Limit of weight for parcels 22 pounds. The conditions of transit in Colombia are exceptional; parcels should therefore be strongly packed to avoid damage. Paintings, chromo cards and printed books are subject to cus- tom duty. Shot guns and rifles for sporting use are mailable if so declared. The collection of custom duty upon parcels from other countries is required in every case in which the addressee has caused the parcel to be opened and assessed, not- withstanding said parcel is subsequently refused by the addressee. In such cases the amount of the custom duty must be paid by the sender before the parcel will be returned to him. PROHIBITIONS. National silver; copper and nickel coins; National paper and postage stamps with the seal or shield of the Republic; anethol or oil of anis; machines to coin money; umbrellas with swords; plates for making notes with the name of the Republic. Secret arms such as sticks, umbrellas and foils with rapiers or daggers hidden from sight, carbines, rifles, and in general, arms properly so called, for individuals. Firearms are not prohibited importation when intended for the government. Revolvers may be imported as well as percussion-cap, ramrod or muzzle-loading or cartridge guns and air guns, together with their accessories. A SPECIAL TAX is imposed on parcel-post shipments calculated at 5% of the value as indicated by the commercial invoice, copies of which in triplicate should be sent direct to consignee in the same mail carry- ing the package. This tax is in addition to the custom duties to be imposed. The limit of weight is 22 pounds, or 10 kilos. Ecuador OBSERVATIONS. Limit of weight for parcels, 20 pounds. A collection is made of a fourth of a centavo for each kilogram of gross weight of each package imported or exported. [76] PARCEL-POST PROHIBITIONS. Sugar-cane brandy and its combinations; articles of food con- taining ingredients that are injurious to health; salt; foreign coin and any outfit for coining. No SPECIAL documents are necessary on parcel-post shipments to Ecuador. However, the import duty is 50% more on shipments com- ing via this medium than on those coming by freight. A minor tax of the equivalent of -one cent U. S. currency per package is likewise imposed upon all parcel-post packages. Guianas THERE is no special tax on parcel-post shipments entering the Guianas. BRITISH GUIANA. OBSERVATIONS. Limit of weight for parcels 1 1 pounds. PROHIBITION. Parts of articles subject to custom duty, except by special per- mission. DUTCH GUIANA. OBSERVATIONS. Limit of weight for parcels n pounds. Parcels cannot be registered. PROHIBITIONS. Confections and paste, coin, dutiable articles, gold and silver articles, precious stones, jewelry and other valuables. FRENCH GUIANA. OBSERVATIONS. Limit of weight for parcels n pounds. Parcels cannot be registered. PROHIBITIONS, ETC. The same as for France, except that tobacco may be im- ported subject to the payment of custom duty and other charges. Paraguay OBSERVATIONS. Limit of weight for parcels 22 pounds. Parcels cannot be regis- tered and are subject to transit charges. PARCEL-POST shipments do not require a Consular invoice. The weight limit is n pounds; dimensions should not exceed three (3) feet six (6) inches greatest length, six (6) feet greatest breadth. Owing to Para- guayan mail going through the Argentine, an additional charge of 30 cents on each parcel ^covering /'transit service" is collected at destination. In Paraguay there is no special tax on parcel-post shipments; con- tents, however, may be dutiable. Peru OBSERVATIONS. Limit of weight for parcels, 22 pounds. PROHIBITIONS. Arms and ammunition of war. Tobacco in any form. IN ADDITION to the duties imposed on the contents of parcel-post packages, there is a tax of the equivalent of 30 cents U. S. on every package so forwarded from America. On packages received from Europe by this medium, the tax is only 10 centavos (the equivalent of 5 cents American money) owing to a reciprocal agreement between [77] OUR SOUTH AMERICAN TRADE AND ITS FINANCING Peru and European governments in this connection. The limit of weight is 22 pounds. Uruguay OBSERVATIONS. Limit of weight for parcels n pounds. Parcels cannot be regis- tered. The following consular fees are collected in Uruguay on parcel-post pack- ages from the United States: For all parcels on which the custom duties assessed exceed 2 pesos ($2.068), the fee is I peso ($1.084); for all parcels subject to cus- tom duties not exceeding 2 pesos, the fee is only 20 centimos (20.68 cents); and for parcels which are free of duty, no fee is collected. It is understood that in case the fee is paid to the Uruguayan consul at the place of mailing in the United States, it is not collected in Uruguay, the amount of the fee being the same in either case. PROHIBITIONS. Gold and silver coin, except ancient money intended for collec- tors, not exceeding 10 pieces in any one parcel; vines and parts thereof; other living fruit plants, flower plants, ornamental plants and parts thereof, unless accompanied by a certificate of grower, duly signed by competent authorities and visaed by the Consul of Uruguay to the effect that there have been no vines on his property for five years. NOTE. Parcel-post packages are accepted for any place in Uruguay, but parcels destined for places other than those mentioned below, will not be sent to the place named in the address, but will be sent to the nearest parcel-post office, where they will be held until the addressees call for them. Achar-i8 Artigas (villa)-3 Barra Santa Lucia-io B a tile y Ordonez-o, Canelones-2 Carmelo-4 Carmen-5 Cerro-io Chuy-i4 Colon-io Colonia-4 Colonia Valdense-4 Conchillas'4 Corrales-i3 Cunapiru-i3 Dolores-iy Durazno-5 Florida-7 Francia-i2 Fray Bentos-i2 Fray, Marcos-y Goni-7 I si a Cabellos-i Isla de Flores-io Isla Mala-7 Joaquin Suarez-2 La Paz (C.)-2 Lascano-i4 La Sierra-8 Las Piedras 2 Libertad-i6 Maldonado-8 Melo-3 Mercedes-i7 Merinos-i 2 Migues-a Minas-9 Montevideo-io Nueva Helvecia-4 Nueva Palmira-4 Ombues de Lavalle-4 Palmitas-i7 Pan de Azucar-8 Pando-2 Paso del Cerro-i8 PasodelosToros-i8 Paso del Molino-io Paysandu-i i Pisarja-9 Pocitos-io Pueblo Porvenir-i I Pueblo Solis-p Punta del Esta-8 Rivera-i3 Rocha-i4 Rodriguez-i6 Rosario-4 Saladero Nuevo Paysandu-i i Salto-i5 San Carlos-8 San Eugenic- 1 San Fructuoso-i8 San Gregorio-i8 San Jose-i6 San Jacinto-2 San Ramon-2 San Vicente de Castillos-2 Santa Lucia-2 Santa Rosa (C.)-2 Santa Rosa (A.)-i Sarandi Grande-7 Sarandi del Yi-5 Sauce 2 Soriano-i7 Tala-2 Tranquera (Paso de Ia)-i3 Treinta y Tres-ip Trinidad-6 Union-io Vergara-i9 Zapacan-g La Paz (C. P.)- 4 The number appearing after each post office indicates the province in which located, said provinces being: i Artigas, 2 Caneloenes, 3 Cerro Largo, 4 Colonia, 5 Durazno, 6 Flores, 7 Florida, 8 Maldonado, 9 Minas, 10 Montevideo, n Pay- sandu, 12 Rio Negro, 13 Rivera, 14 Rocha, 15 Salto, 16 San Jose, 17 Soriano, 18 Tacuarembo, 19 Trienta y Tres. [78] PARCEL-POST Two CERTIFICATES of origin, in Spanish, are required. Merchandise under parcel-post shipments is subject to the same duties as are im- posed on freight shipments. Consular invoices, in duplicate, are neces- sary on packages having a declared value. Venezuela OBSERVATIONS. Limit of weight for parcels, n pounds. Four copies of the cus- tom declaration (Form 2966) must be attached to each parcel. If any person receives more than 20 kilograms (44 pounds) of the same merchandise by the same steamer, he must pay, in addition to the entry duty, an amount equal to 10 per cent, of the Venezuela custom tariff. The weight, contents and value should be indicated clearly and specifically, instead of by a general statement of the merchandise. Violation of this stipulation involves a fine of twice the amount of the custom duty chargeable on the parcel. PROHIBITIONS. Starch, indigo, cocoa, coffee; salted or dry meat in pieces; salt; sarsaparilla roots; silver, nickel or copper coins and machines for the manu- facture of the same; matches, except those known as "feu de Bengale;" cigarette paper; saccharine and its products unless addressed to pharmacists, who may import i oo grains per person. CONSIDERABLE delay is occasioned in Venezuela on parcel-post ship- ments. Notice to consignee of the arrival of packages by this medium is by publication, after which consignee is obliged to notify the director of the post office of his acceptance or rejection of the package. After a somewhat protracted delay, extending at times to weeks, the post office authorities forward to consignee a statement of the duties and charges assessed upon package, upon" payment of which shipment is released. PARCEL-POST GENERAL OBSERVATIONS 1. Address COMPLETE name and address of the consignee should be written on every parcel. 2. Custom Declaration WHERE custom declaration is required by the postal treaty, this is filled out on a special tag supplied by the post office, which should be tied to the package. (Several countries do not require custom declaration.) 3. Marks No DISTINGUISHING marks are necessary on the parcels, but [79] OUR SOUTH AMERICAN TRADE AND ITS FINANCING they should be numbered (i, 2, 3, etc.), in the case of shipment of several parcels to the same party. 4. Guarantee U. S. POST OFFICE, as a rule, does not guarantee delivery of parcels in foreign countries, even if insured, and does not accept responsibility for loss by any cause. It is safer to insure parcels against loss with insurance companies specializing in this class of insurance. Drafts in Cover J or Parcel-Post Shipments OWING to the usual and expected delay of from two to six weeks in the delivery of parcel-post shipments after arrival at most South American post offices, foreign consignees usually refuse to "accept" drafts covering such shipments until after definite delivery to them of the corresponding merchandise. On this account, it is advisable to draw drafts covering parcel-post shipments "so many days after date," as on drafts drawn "so many days after sight" time does not commence to run in some countries until the date of actual acceptance by drawee, irrespective of the number of times the draft may have been presented for this purpose. CABLES Time, Tariff, Codes SECURE from cable companies their tariffs covering messages to and from South America. Rates run as high as $1.44 a word, so that codes will be found economical. Night (or deferred) messages, if in plain language, and if sent to South America via the West Coast, may be sent generally at half rates. This is convenient for Saturday to Monday cables. Private codes may also be compile^ for use between the home office and foreign branches or representatives, but it is advisable to consult the rules of cable companies in this respect. There is no direct cable service between the United States and Brazil, and messages between the two countries are transmitted either via Europe or via the West Coast of South America through Chile and the Argentine. Messages between the two countries via the Argentine and the West Coast of South America are more expensive though quicker. [80] FOREIGN EXCHANGE It will be noted from this that messages between the United States and Brazil cover a considerably longer transmission distance than do cables between the Argentine or Chile, and on this account the cost of such messages is higher. Messages between the United States and the Argentine or the West Coast South American countries pass over the direct lines of the Central South America Cable Company, via Colon. FOREIGN EXCHANGE South American Monetary Values HEREWITH is given the approximate value, in American money, of the moneys in circulation in the different countries of South America. COUNTRY Argentina .... Bolivia Brazil MONETARY UNIT Peso Paper peso in cur- rent use Boliviano Milreis, 1,000 reis STANDARD Gold Paper Gold Gold Paper British Guiana Money of England Chile Peso Gold Paper Colombia Ecuador Panama Paraguay Paraguay Peru Uruguay Venezuela Peso Sucre Balboa Peso Peso (Argentine) Peruvian pound (10 soles) Peso Bolivar Gold and variable paper Gold Gold Silver Gold Gold Gold Gold EQUIVALENT U. S. VALUE $0.9648 0.4245 0-3893 0.5462 0.3244 variable 0.3650 o.2433 variable 0-9733 0.4867 1. 00 0.7105 o . 9648 4.8665 1.034 0.1930 [81] OUR SOUTH AMERICAN TRADE AND ITS FINANCING THESE values are mint par. The commercial values, however, fluctuate from day to day in keeping with the movement of imports and ex- ports and the consequent demand for and supply of exchange in the countries involved, thus affecting the rates on the various countries. FOREIGN WEIGHTS, MEASURES AND GENERAL UNITS IN quoting prices to merchants in foreign countries, as well as in filling orders received from abroad, care should be exercised in interpreting the units availed of. If the "ton" should be used, it should be noted that the net ton, the gross ton, and the metric ton differ in weight. "Hundred weight," likewise, could mean 100 pounds or 112 pounds. Where a quotation is made by weight or by ton, it is advisable to specify the number of pounds intended by the unit of weight used; that is, a "ton of 2,000 pounds," "ton of 2,240 pounds," or "ton of 2,204 pounds." The carload lot may likewise vary between 12,000 and 90,000 pounds. In other words, in order to avoid misunderstand- ing it is advisable in quoting to render clear the interpretation to be given to the unit used. On orders received from South America on which prices have not been quoted, and in which the units of weight or measure used may be variously interpreted, it is policy, if in doubt, to cable before shipping, and await confirmation of the price to be charged and the unit equivalent to be covered thereby. METRIC EQUIVALENTS IN WEIGHTS AND MEASURES THE METRIC SYSTEM is obligatory in the Argentine, Bolivia, Brazil, Chile, Colombia, Ecuador, Paraguay, Peru and Uruguay. PREFIXES MEANING UNIT milli -one thousandth 1/1000= .001 meter = for length centi one hundredth i/ioo = .01 deci -one tenth i/io = .1 gram -weight or mass deka -ten 10/1 = 10. hecto -one hundred 100/1 = 100. liter = for capacity kilo -one thousand 1000/1 =1000. [82] WEIGHTS, MEASURES, ETC. Metric Weights Milligram (i/iooo gram) = 0.0154 grain Centigram (i/ioo gram) = 0.1543 grain Decigram ( i /io gram) = 1.5432 grains Gram = 15.432 grains Decagram (io grams) = 0.3527 ounce Hectogram (100 grams) = 3-5 2 74 ounces Kilogram (1,000 grams) = 2.2046 pounds Myriagram (10,000 grams) = 22.046 pounds Quintal (100,000 grams) = 220.46 pounds Millier or tonnea-ton (1,000,000 grams) = 2,204.6 pounds Equivalents 2.2046 Avoirdupois pounds = I kilogram 2,000 Avoirdupois pounds =* I short ton 2,240 Avoirdupois pounds = I long ton 2,204.622 Avoirdupois pounds = I metric ton FOR the purpose of figuring weights on invoices, kilos may be figured at 2 1/5 pounds to the kilo or kilogram. (See reduction table of pounds to kilos, on page 86.) Metric Dry Measures Milliliter (i/iooo liter) = 0.06 1 cubic inch Centiliter (i/ioo liter) = 0.6102 cubic inch Deciliter (i/io liter) = 6.1022 cubic inches Liter = 0.908 quart Decaliter (io liters) = 9.08 quarts Hectoliter (100 liters) = 2.838 bushels Kiloliter (1,000 liters) = 1.308 cubic yards Metric Liquid Measures Milliliter (i/iooo liter) = 0.27 fluid dram Centiliter (i/ioo liter) = 0.338 fluid ounce Deciliter (i/io liter) = 0.845 &^ Liter = 1.0567 quarts Decaliter (io liters) = 2.6417 gallons Hectoliter (100 liters) = 26.417 gallons Kiloliter (1,000 liters) = 264.17 gallons OUR SOUTH AMERICAN TRADE AND ITS FINANCING Equivalents I liquid pint = 0.473 liters i liquid quart = 0.946 liters i gallon = 3.785 liters Metric Measures of Length Millimeter (i/iooo meter) = 0.0394 inch Centimeter (i/ioo meter). = 0.3937 mcn Decimeter (i/io meter) = 3.937 inches Meter = 39.37 inches Decameter (10 meters) = 393-7 inches Hectometer (100 meters) = 328 feet i inch Kilometer (1,000 meters) = 0.62137 mile (3,280 ft. 10 in.) Myriameter (10,000 meters) = 6.2137 miles Equivalents i inch = 1/36 yard = 1/12 foot = 100/3937 meter i foot = 1/3 yard = 1200/3937 meter i yard = 36 inches = 3600/3937 meter 39 37/100 inches (1.093 yards) = i meter Metric Surface Measures Centare (i square meter) = 1,550 square inches Arc (100 square meters) = 119.6 square yards Hectare (10,000 square meters) = 2.471 acres Equivalents i acre = 0.404 hectares i square mile = 258.999 hectares Volume i cubic inch = 16.387 cubic centimeters i cubic foot = 28,317.016 cubic centimeters i cubic yard = 764,559.4 cubic centimeters 1.3079 cubic yards = i cubic meter [8 4 ] WEIGHTS, MEASURES, ETC. LOCAL FOREIGN WEIGHTS AND MEASURES AS OFTEN USED ON FOREIGN ORDERS ARGENTINE REPUBLIC Arroba (dry) 25.3171 Ibs. Libra 1.0127 Ibs. Baril 20.0787 gals. Pie 0.9478 ft. Cuadra 4.2 acres Quintal 101.42 Ibs. Frasco 2.5096 qts. Vara 34.1208 ins. BOLIVIA Marc -57 Ibs. BRAZIL Arroba (dry) 32.38 Ibs. Quintal 130.06 Ibs. CHILE Fanega (dry) 2.575 bu. Quintal 101.61 Ibs. Libra 1.014 Ibs. Vara 33-3^7 ins. PARAGUAY Vara 34 ins. Cuadra 78.9 yds. Quintal 100 Ibs. Cuadra (square) . . . 8,077 s( l- ft- League (land) 4*633 acr es Arobe 25 Ibs. PERU Libra 1.0143 Ibs. Vara 33-36? ins- Quintal 101. Ibs. URUGUAY Cuadra nearly 2 acres Libra (pound) . . . 1.0143 Ibs. Fanega (dry) .double 7.776 bu. Suerte 2,700 cuadras Fanega (dry) . single 3.888 bu. (See Cuadra) VENEZUELA Vara 33-382 ins. Arroba (liquid) . . 4.263 gals. Libra (pound) 1.0161 Ibs. Arroba (dry) .... 25.4024 Ibs. Fanega (dry) 1.599 bu. [85] OUR SOUTH AMERICAN TRADE AND ITS FINANCING REFERENCE TABLE REDUCTION OF POUNDS TO KILOS I 0-4535 2 .9070 3 1.3605 4 1.8140 5 2.2675 6 2.7210 7 3.I745 8 3.6280 9 4.0815 10 4.5350 ii 4.9885 12 5.4420 13 5.8955 14 6.3490 IS 6.8025 16 7.2560 7 7.7095 18 8.1630 19 8.6165 20 9.0700 21 9.5235 22 9.9770 23 10.4305 24 10.8840 25 "3375 26 11.7910 2 7 12.2445 28 12.6980 29 13.1515 30 13.6050 34 35 36 LBS. KILOS 31 14.0585 32 14.5120 33 H.9655 15.4190 15.8725 16.3260 37 16.7795 38 17.2330 39 17-6865 40 18.1400 41 18.5935 42 19.0470 19.5005 19.9540 20.4075 20.8610 61 62 63 64 65 66 67 68 69 70 KILOS 27.6635 28.1170 28.5705 29.0240 29.4775 29.9310 30.3845 30.8380 43 47 48 49 50 5 1 52 53 54 2 57 58 59 60 21.7680 22.2215 22.6750 23.1285 23.5820 24-0355 24.4890 24-9425 25.3960 25.8495 26.3030 26.7565 27.2100 3 ' -745 32.1985 32.6520 33-1055 33.5590 75 34-0125 76 34.4660 34.9*95 350730 35.8265 80 36.2800 8 1 36.7335 82 37.1870 37.6405 38.0940 38.5475 39.0010 39-4545 39.9080 40.3615 40.8150 72 73 74 7f 77 78 79 83 84 85 86 87 88 89 90 LBS. KILOS 9 1 41.2685 9 2 41.7220 93 42.1755 94 42.6290 95 43.082 5 96 43.5360 97 43.9895 98 44-443 99 44.8965 100 45.3500 200 90.7000 300 136.0500 400 181.4000 500 226.7500 600 272.1000 700 217.4500 800 362.8000 900 408.1500 i ,000 453.5000 2,000 907. 3,000 1,360.5000 4,000 1,814. 5,000 2,267.5000 6,000 2,721. 7,000 3,174.5000 8,000 3,628. 9,000 4,081.5000 10,000 4,535. 20,000 9,070. 30,000 13,605. REPRESENTATIVES OR SALESMEN CARE TO BE OBSERVED IN THEIR SELECTION HAVE the man whom you intend to send to a foreign country study the language of that country. This is better for him, for the firm he represents, and for those in the foreign country with whom he will be treating. It is not an exaggeration to say that for every dollar's worth of business developed by a representative while unable to speak the language of the country, two dollars' worth could have been se- cured if the business, instead of being transacted through the medium of an interpreter, could have been carried on direct with the purchaser in his own language. However, as between a representative thor- oughly familiar with the business to be transacted, though unfamiliar with the language of the country, and one who speaks the language but is not familiar with the line of business to be represented, the [86] SALESMEN'S LICENSES former is by all means preferable. This is an important point to be borne in mind by American merchants interested in developing a South American trade. A combination of these advantages, however, will mean smoother sailing in a foreign country, as anyone who has ever tried to transact business through the medium of an interpreter knows but too well how exceedingly embarrassing and unsatisfactory it is to all con- cerned. SALESMEN'S LICENSES IN SOUTH AMERICA THE information under this heading is of special interest to firms contemplating the sending to South America of a repre- sentative or salesman. A peculiarity in connection with the special tax imposed is that the government tax is frequently supplemented by a particular pro- vincial tax imposed by the province in which business is solicited or effected. Under the heading devoted to "Samples" it will be noted that samples to be admitted free are occasionally subjected to mutilation though such mutilation is not sufficiently severe to effect the purpose for which the sample is supposedly to be used. Shoe salesmen on this account usually carry but one sample shoe of a pair. Argentina IN THE city of Buenos Aires, and in the ten national terri- tories of the country, a tax for the transaction of business ranging from 500 to 5,000 Argentine pesos is imposed upon representatives of foreign houses. In the fourteen provinces the annual tax varies from 600 to 800 Argentine pesos for each province. If a representative visits the Argentine simply with a view to ap- pointing agents, no tax is imposed. If he has with him catalogues or samples and endeavors to take orders, this activity brings him within the imposition of the tax. An exact transcript in English of the Argen- tine law in this connection reads: "Representatives of foreign firms with or without stores opened to the public, or brokers or commission merchants from abroad, shall pay an annual license of 500 to 5,000 Argentine pesos. Representatives, commission merchants or traveling salesmen from abroad who are not members of a firm established in Buenos Aires or in the national territories may not transact business except upon payment in advance of the Government license fee." [87] OUR SOUTH AMERICAN TRADE AND ITS FINANCING The taxes imposed in the provinces and territories are separately payable. These taxes cannot be paid in one sum at the Government bureau in Buenos Aires; they become due and are individually pay- able in the territories and provinces upon commencing activities therein. Bolivia SALESMEN or representatives of foreign houses transacting business in Bolivia, whether carrying samples or not, are subject to local taxation in the various cities of the republic. This ranges from ico Bolivianos to 250 Bolivianos in each city. Brazil REPRESENTATIVES visiting Brazil for the purpose of appoint- ing agents are not subject to any tax, federal, state or municipal. A salesman selling merchandise, whether from sample or without sample, is subject to municipal and state taxes. The law in this re- spect, however, is somewhat lax, so that if an office is not opened there is little probability of tax being collected. There is no tax levied by the Federal Government on foreign salesmen transacting business in Brazil, but salesmen traveling from state to state in Brazil are subject to the taxes of the various states. This tax varies with the class of goods sold. A foreign salesman, agent, or representative of a foreign concern \/ho has established a permanent office or show room, whether carry- ing stock or not, must transact business in his own name and not in the name of the firm he represents, although he may advertise or represent himself as the agent of his principals. All taxes, how- ever, must be paid in his individual name. These taxes are as follows: STATE TAX. This varies with the nature of the business trans- acted, and increases proportionately with the amount of capital in- vested in the stock carried. FEDERAL TAX. This varies with the nature of the business, and increases in proportion to the amount of rent paid for the premises occupied. In the city of Rio, the municipal tax is 10% of the rental value of the office occupied. When traveling in the interior, taxes for transacting business are separately imposed and are due to the various municipalities in which it is desired to transact business. Where it is desired to avoid these [88] SALESMEN'S LICENSES impositions it is advisable in traveling to carry to each city only the samples it is intended to use, either leaving the others behind to be packed up later on or forward them ahead to the point at which they are to be used. Chile A REPRESENTATIVE visiting Chile simply to appoint agents does not come within the imposition of the commercial tax. If he endeavors to sell, however, either from sample or catalogue, this ac- tivity brings him within the imposition of the tax, which ranges from $1,000 to $3,000 pesos paper for each of the twenty-four prov- inces of the country. A traveler, however, would visit only three or four of these prov- inces, as the others are not of sufficient importance to warrant an endeavor to develop business therein. The penalty inflicted upon conviction of endeavoring to avoid pay- ment is a fine of three times the legal tax. Colombia IF A REPRESENTATIVE visit Colombia simply to appoint agents, he does not come within the imposition of tax. If he sells, however, or endeavors to sell, whether he has with him samples or not, tax is imposed and this amounts to approximately $20 gold monthly, Ecuador A REPRESENTATIVE visiting the country simply to appoint agents is not subject to tax. If it be the intention to take orders, the samples coming through the custom will not be released until pay- ment of a tax of ico sucres (a sucre is approximately 48 cents American money). This is not a duty on the samples but a tax for the sale of merchandise in the country. Passports of all travelers entering Ecua- dor must be exhibited to the authorities within twenty-four hours after entering the country. Paraguay THERE is no tax on salesmen or representatives transacting business in Paraguay. OUR SOUTH AMERICAN TRADE AND ITS FINANCING Peru IN PERU there is no national tax covering the activities of com- mercial travelers. However, local taxes are imposed in some of the smaller towns and districts. In Arequipa this tax is 25 soles quarterly. In Cuzco the tax is 50 soles for each visit. Uruguay No TAX is imposed in Uruguay on salesmen or representatives of foreign houses whether samples are carried or not, unless actual delivery of the merchandise sold is made by the salesman. In this event the tax per annum is $100.00 gold. Venezuela THERE are no special taxes or regulations governing the activi- ties in Venezuela of salesmen or representatives of foreign houses irre- spective of whether they sell from catalogue or samples. SAMPLES RULES GOVERNING CUSTOM ENTRY IN SOUTH AMERICAN COUNTRIES Argentina IF IT be intended to re-export samples within six months after entry into the Argentine it is possible to avoid payment of duties by placing with the custom authorities an acceptable bond under which the guarantor becomes liable for the duties and a fine in addition thereto in the event that an extension has not been secured or that re-export has not been effected within the time specified. Where samples may be mutilated without destroying their effective- ness as specimens this method is resorted to where it is desired to avoid the payment of duties. Shoes may have the soles perforated or the uppers cut. Carpets or rugs may be cut into small sections, etc., and still serve the purpose of samples. With expensive merchandise samples, the salability of which would be destroyed through mutila- tion, in the absence of the bond required, it is advisable to pay the duties and dispose of the merchandise after the sample has served its purpose. [90] SAMPLES Bolivia To ENTER samples through the custom house in Bolivia it is necessary to make declaration to the effect that the merchandise entered is to be used solely for the purpose of serving as sample. No duty is collected if the appraised value of such merchandise is 10 Bolivianos or less. On values in excess of this amount duties must be paid or such samples must be so mutilated so as to render them un- salable. On samples or merchandise which it is intended to re-export the guarantee or bond of a reputable bank or business house is required to cover the amount of duties which such merchandise should pay were it to remain in the country. Brazil SALESMEN'S samples as such are not subject to a tax, but if salable they are subject to the ordinary custom duties. Samples car- ried should be covered by a Consular invoice issued by a Brazilian Consul in this country, containing a description of the articles carried as samples. With this document salesmen will pay full duties on sam- ples carried, but with the understanding that refund will be made upon re-exportation. A bond, however, is required by the authorities from an acceptable firm or bank in Brazil before samples can be cleared on this basis. Samples cleared in this manner are subject to 5% of their official value and are likewise subject to the following additional charges: such as Port works tax and storage, handling and statistical charges so that refund, if made later on, will be for only one-third to one-half of the duties originally paid. Unless re-export of samples is effected within 60 days the refund privilege is cancelled. An extension of this time, however, may be secured upon application to the Collector of the Port. In practice, samples are rarely removed under bond. Salesmen usually pay full duties in order to avoid annoyance. Chile PAYMENT of duties on samples may be avoided if objection to mutilation is not made. A Consular invoice is necessary covering sam- ples carried. If samples are to be re-exported the payment of duties may be avoided by placing an acceptable bond with the custom house [91] OUR SOUTH AMERICAN TRADE AND ITS FINANCING authorities under which guarantor becomes obligated to pay the du- ties if the goods are not removed from the country within six months. Ecuador To AVOID payment of duty on samples a guarantee acceptable to the government must be deposited with the custom authorities covering the re-exportation of such samples within a stipulated period. At the expiration of this period if the samples have not been re-ex- ported the corresponding duties must be paid under the guarantee. Paraguay SAMPLES may be cleared through the Paraguayan custom duty free if declared as of no commercial value. Peru IN CONNECTION with the entering of samples through the cus- tom house at Lima it is necessary to present to the collector an itemized statement containing the following data: The marks, numbers, net and gross weight and dimensions of each package with the detailed contents thereof. As samples, only one ar- ticle of each kind, quality, shape, size, color or weight may be im- ported, with the exception of such articles as are not dutiable under the customs tariff. On samples which may be entered free of duty it is necessary to deposit with the collector in the form of a bank draft the amount of the duties which would be imposed if the merchandise had not come through as samples. This amount, however, will be refunded less accrued charges upon re-exportation if effected within three months from date of en try. Uruguay SAMPLES may be entered duty free if at the time of entry a declaration is made through a custom house broker to the effect that re-exportation will take place within ninety days. Samples remaining in the country after the expiration of this period incur full duties although an extension of the ninety-day period may be obtained if application therefore is made through the Collector of the Port. The payment of tax on samples may also be avoided in Uruguay by permitting the custom authorities to mutilate samples in such manner as to render them unsalable. [92] BRANCH OFFICES Venezuela SAMPLES to the extent of 25 kilos in weight may be entered free through the Venezuelan custom. On samples in excess of this weight duties are assessed. Such duties, however, are returnable within one year if in the interim samples have been re-exported and if upon original entry, notice was given of the intention to re-export. BRANCH OFFICES OF AMERICAN COMPANIES REQUIREMENTS IN SOUTH AMERICA Argentina THE DOMESTICATION in the Argentine of a foreign company or partnership may be effected in three different ways: [ i ] By delegation of authority through a "Power of Attorney" duly vis6ed by the Argentine Consul in the American city of issue. [2] Establishing a branch for the conduct of business under its orig- inal by-laws through petition for this purpose to the Argentine National Tribunal. [3] The organization of a local Argentine corporation or partnership for the full amount of the capital to be invested. The cost involved in the drawing of the necessary papers for the average corporation or partnership is around 2500 pesos made up as follows : Legal service . . . $1,000 Argentine paper Notary fees . . . $1,000 Publication in daily papers for 15 days $500 Argentine paper Brazil FOR THE purpose of obtaining authorization to operate in Brazil as a branch of an American corporation or firm the following documents are necessary: [ i ] Copy of the charter of the corporation in the United States. [2] Copy of the by-laws of the corporation in the United States. Original act of incorporation showing the list of original sub- scribers and the number of shares held by each. [93] OUR SOUTH AMERICAN TRADE AND ITS FINANCING [4] Special power of attorney of the corporation in the United States to petition authorization to operate in Brazil. It is also necessary to signify acquiescence in any changes which may be proposed to be made in the by-laws in order to conform to Brazilian require- ments. [5} General power of attorney of the corporation in the United States granting full powers to the Brazilian office as representative of the foreign corporation. This should be in duplicate. [6] Certificate of resolution of the Board of Directors in the United States authorizing operations in Brazil and indicating the amount of capital to be employed in Brazil. It is important that this document specifically state the capital to be employed in Brazil, as otherwise assessment by the Brazilian authorities will be upon the entire capital of the corporation in the United States. It is suggested that in the event of it being desired to operate in Brazil with a capital smaller than that employed in the United States it is advisable to form a separate Brazilian corporation. For the domestica- tion in Brazil of such an incorporation it is necessary to furnish docu- ments similar to those already referred to with the exception of No. 6, the Certificate of Special Resolution, which may be dispensed with when the articles of incorporation expressly provide for operations in Brazil on the basis of the total capital liability. All documents referred to herein to have legal effect in Brazil must be visaed by a Brazilian Consular officer in the United States. Translations of such documents from English into Portuguese had better be left to be made in Brazil by a sworn public translator, inas- much as translation when so made is fully protected by Brazilian law. Where only a branch office is opened in Brazil there is no legal re- quirement governing the necessity of such office being in charge of an officer, a director or stockholder of the firm. The representative, how- ever, should be clothed with full and complete powers to adjust all questions arising out of the corporation's activity in the country. The expenses for initiating operations in Brazil are as follows: I ] Stamp tax for Decree of Authorization Rs. 300^000 [2] Stamp tax on capital authorized for operations in Brazil, at the rate of 2$ooo per conto of reis (one thousand milreis) or fraction [94] BRANCH OFFICES thereof, exchange to be made at the official rate as established by the official Board of Brokers. [3] Federal Government Tax This tax varies: (a) Fixed tax on the nature and class of business or profession, ranging from 20^000 to i6o$ooo. (b) Proportional tax of 20%, 10% or 5% based upon the an- nual rental of the place of business, as also the class of business conducted. (c) Income tax of 5% on declared dividends. Domesticated foreign corporations are also subject to the Municipal License Tax of the Federal District, which is levied on the amount of the capital. There must be deposited in the Bank of Brazil (the government institution) pending the registration of the decree, one-tenth part of the capital to be devoted to Brazilian business. This deposit is rarely retained beyond a month's time. The petition for authorization to transact business in Brazil covers the several states and involves no additional expense for the establish- ing of branches outside of the state in which the business is originally organized. Chile FOR AN AMERICAN company to establish a branch office or agency in Chile it is necessary to secure governmental authorization. The steps necessary in this respect are to file in the commercial reg- ister in the principal city of the country: [ i ] A copy of the by-laws of the company with a certificate as to its legal constitution in the United States, these documents to be viseed by a Chilean Consul resident in the United States. [2] Power of Attorney granted by the company to its agent or repre- sentative in the South American country. In this document the company assumes full responsibility for the acts in the foreign country of its representative so appointed and authorizes said representative to sue or be sued in the name of the company. [3] Statement as to the amount of contributions to the company by its shareholders. [95] OUR SOUTH AMERICAN TRADE AND ITS FINANCING [4] Vis6ed copy of the last balance sheet of the company. In the general application should likewise be included documents to the effect that the new company in its activities in Chile will be subject: [ i ] To the administrative and judicial authority of the foreign coun- try and that the soliciting company renounces diplomatic pro- tection in all transactions within the scope of the company's operations while carried on in Chile. [2] That the property of the company owned or to be secured in Chile will be subject to the laws of the country for the fulfilment of its obligations. [3] That notification will be given to the proper authorities of any vital change in the company, or its capital, assets, or the business to be transacted. [4] That the reserve fund of the company will be at no time less than 25% of the declared capital and will be formed by at least 5% of the net profits of each balance and that this fund will be invested in Chile. [5] That in the event of a loss of 50% of the capital the company will be liquidated. [6} That the home company will forward periodically to the agent for deposit with the proper Chilean authorities a duly viseed copy of its periodic balances. [7] That such home office balance will be published in an official Chilean paper. [8] That in any matters brought to the attention of the Chilean authorities, the foreign company will submit in like manner as a local company to the decision rendered. [9] To declare the amount of the capital to be assigned to the busi- ness conducted in Chile with the date and manner in which such capital is to come into the country. Foreign stock companies transacting business in Chile through legally established offices are subject to Government inspection. Of the capital to be placed at the disposal of the Chilean branch at least 33^% must [96] BRANCH OFFICES be deposited with the Government Depositary before consideration will be given to application for permission to transact business. Taxes vary in the different states. Lines of business are usually classified and yearly licenses are granted by special commissions after consideration of the capital invested in the country and the impor- tance of the class of business transacted. In Chile, municipal taxes on importing houses are classed as follows: First class . . . $6,000.00 pesos annually Second class . . 3,000.00 pesos annually Third class . . . 2,000.00 pesos annually Fourth class . . 1,000.00 pesos annually Colombia To OPEN in Colombia a branch office of an American firm it is necessary to file with the commercial registrar a copy of the articles of incorporation or partnership agreement. Whether or not stock or samples are carried tax must be paid, based upon the nature and extent of the business to be transacted. The min- imum fee being $20 U. S. monthly. Bolivia Ecuador Paraguay THERE are no special requirements in these countries for the establishment of a branch office of an American firm beyond furnishing the manager thereof with a duly viseed Power of Attorney and pub- lishing with the local press the articles of incorporation or partnership. These requirements are necessary irrespective of whether stock or samples are carried. Municipal and state taxes, however, must be paid, as imposed on all local business. Peru To TRANSACT business in Peru a branch office of an American firm should deposit with the mercantile registrar a certificate viseed by a Peruvian Consul in the United States attesting to the fact that the company has been legally organized under the laws of the United States or of one of the states and this should be accompanied with a copy of its constitution and by-laws likewise viseed by a Peruvian Consul. There should also be registered in Peru in the mercantile register the power granted to the manager and other officers in Peru detailing [97] OUR SOUTH AMERICAN TRADE AND ITS FINANCING the powers conferred. The incorporation of a foreign company in Peru is subject to a registry tax of M% upon its capital stock payable at the time of registry. To avoid payment of a tax upon the entire capital stock of a foreign corporation it is advisable that a smaller capital be assigned to the Peruvian branch. A municipal tax is payable upon the opening of a branch house, varying in amount but not ex- ceeding 100 Peruvian. This tax is payable once only, not yearly. A tax of 5% is likewise imposed on yearly profits. This taxation is not affected by the carrying or non-carrying of stocks. Many branch offices in Peru are not paying these taxes as the government appears to be somewhat lenient in this respect, but should any litigation arise such offices would be denied legal recognition in the Peruvian courts. Uruguay AMERICAN firms may open branch offices in Uruguay by simply paying the tax imposed for transacting business in the republic. The tax is levied whether or not stock or samples are carried and is based upon the nature and the estimated extent of the business to be trans- acted. Venezuela THE ESTABLISHMENT in Venezuela of a branch office of an American firm requires registration in the commercial register and a vis6ed copy of the original articles of incorporation or partnership. These articles must likewise be published in a local paper. Delegation by power to the Venezuela manager thereof of authority to sue and to be sued in the name of the company is likewise necessary. The cost of registration usually involves a charge of 8 Bolivars per page for the translation of the by-laws and other necessary documents, if in English, and such translation is written on stamped paper at i Bolivar per page. Powers of Attorney are written on stamped paper at 2 Bolivars per page. Registration 7 Bolivars Publication . . . . 75 to 100 Bolivars Legal fees 1,000 Bolivars A municipal tax is likewise imposed varying with the class of mer- chandise to be sold or the business to be transacted. [98] RUBRICATION LETTERS OF CREDIT RUBRICATION OF BOOKS OF ACCOUNT IN FOREIGN BRANCH OFFICES USUALLY the principal books of account are subject in South American countries to rubrication or legalization, for which purpose it is necessary to send such books to the proper Government Department. Every page of these books is stamped with the seal of the department at so much per page. Failure to rubricate such books estops a firm from using as legal evidence whatever information they may contain and which it may be desired to introduce as evidence in a court of law. LETTERS OF CREDIT AND TRAVELERS' CHECKS \ MERICANS visiting South America and our South American \. friends when visiting the United States will find The National City Bank Travelers' Letters of Credit a safe and convenient means of carrying funds. While traveling, it is dangerous from the standpoint of possible robbery or loss, to carry a considerable amount of money on one's person. Through the Letter of Credit this danger is minimized, as only such amounts need be drawn in the country visited as may be necessary for immediate expenses. The protection offered by this means of carrying funds is considerable, as only the beneficiary of the Letter may obtain money thereunder and then only after due identi- fication. The National City Bank Travelers' Checks may also be used for foreign travel. These checks offer considerable protection to the holder as they can be cashed only when countersigned in the presence of the payor by the original purchaser. The Letter of Credit, however, gives a greater measure of protec- tion. The cost of either National City Bank checks, good the world over, or of National City Bank Travelers' Letters of Credit is moderate. The National City Bank of New York issues Commercial and Travelers' Letters of Credit from its New York office as also from its branch banks in South America, covering the various countries of the world. [99] jifiii*& i r < k Y Sao Paulo Branch The National City Bank of New York TRAVEL TO AND IN SOUTH AMERICA LETTERS OF INTRODUCTION TO SOUTH AMERICA IT IS advisable when visiting South America to carry letters of introduction to our Branch Managers. Through this medium the extensive facilities offered by our branch banks in practically all South American countries may be availed of by the traveling representatives of American houses. In connection with the business of American firms passing through our foreign branches, however, it should be remembered that unless such introductory letter, or preferably a separate power of attorney, specifically confers full and ample authority on the holder, the mere possession of an introductory letter does not in itself warrant recogni- tion on the part of our foreign banks of all of the powers which travel- ing representatives may claim to possess. Among the general powers conferred, those to which special atten- tion should be given are the following: Authority to allow reduction or rebate on drafts of the home company drawn upon foreign clients. To extend time on drafts. To waive charges, such as interest, insurance, etc. To allow inspection of the merchandise before payment or ac- ceptance of drafts. To personally take up documents or to order their delivery to another person or firm. To order re-sale or re-shipment of merchandise. Other powers which it may be advisable to confer. The exercise of care in delegating through a proper instrument the exact powers which it is intended to confer will save considerable annoyance, time and expense, and will greatly facilitate the activities of American representatives traveling in South America. TRAVEL TO AND IN SOUTH AMERICA AT THE time of writing the rates for South American steamship travel are excessive. The minimum first class rates as given here- in are those obtaining at the present time and while subject to wide and sudden variation, they will serve as a basis for the calculation of [101] OUR SOUTH AMERICAN TRADE AND ITS FINANCING the cost of an itinerary from New York covering the important cities in South America as also from the principal cities in one country to the principal cities in the countries adjacent thereto. In estimating the cost of a South American trip for a representative or salesman we find that $20.00 per day, exclusive of steamship fare to and from New York is about the average rate of expense incurred. ARGENTINA NEW YORK to BUENOS AIRES, one way $ U. S. 490. From BUENOS AIRES to CITY SINGLE RETURN Rosario .... $18.20 $30.35 Argentine paper Santa Fe . . . . 27.85 46.50 Argentine paper Cordoba . . . . 38.20 57 . 50 Argentine paper Tucuman. . . . 60.30 100.50 Argentine paper From BUENOS AIRES to the principal cities in neighboring countries CITY SINGLE Montevideo, Uruguay . . . $20.00 Argentine paper Santiago, Chile 202 . 80 Argentine paper Rio de Janeiro 200 . oo Argentine paper BOLIVIA NEW YORK to LA PAZ, one way $ U. S. 307.65 BRAZIL Bahia NEW YORK to BAHIA $ U. S. 300. one way. Pernambuco NEW YORK to PERNAMBUCO, one way $ U. S. 300. Porto Alegre NEW YORK to PORTO ALEGRE, one way, $ U. S. 490. From PORTO ALEGRE to Rio DE JANEIRO the equivalent of about $ U. S. 50. There is rail connection between Porto Alegre and Monte- video, in Uruguay, and with Buenos Aires in the Argentine. There is also rail connection with Sao Paulo in Brazil. The trip to Montevideo takes about three days, and to Buenos Aires or Sao Paulo about four days. The trip in either direction is uninteresting. Sleeping conditions are very poor. Meals are fair. [102] TRAVEL TO AND IN SOUTH AMERICA Rio de Janeiro NEW YORK to Rio DE JANEIRO, one way $ U. S. 41 5. From Rio to SAO PAULO, railway fare 40^100. Berth on this train usually costs 15^000 to i8$ooo. Steamship rate from Rio to Santos . . 25^000 Rio to Bahia . 90^000 Rio to Rio Grande 138^000 Rio to Recife . 113^000 Rio to Porto Alegre 163^000 Rio to Para . 259^000 Rio to Montevideo 150^000 Rio to Manaos 363^000 Rio to Buenos Aires 170^000 Passage between local points on Brazilian steamers may be paid in Brazilian currency. English and United States lines, however, demand payment in sterling, dollars or gold. Santos NEW YORK to SANTOS, one way, $ U. S. 425.00. From SANTOS to SAO PAULO by railroad only 6^500 Rio by railroad only . . 6o$ooo Rio by steamer .... 31 $000 to 6o$ooo Montevideo, Uruguay, by steamer 150^000 to 200^000 Buenos Aires, Argentine by steamer 1 50^000 to 200^000 (Note) By rail baggage is charged for by weight and as the charge is excessive it is advisable to travel as light as possible. CHILE NEW YORK to VALPARAISO, one way, $ U. S. 340.00 From VALPARAISO to SANTIAGO the cost of travel is about $ U. S. 5. From VALPARAISO to ANTOFAGASTA $ U. S. 35. From VALPARAISO to BUENOS AIRES $ U. S. 80. Rates are constantly changing. COLOMBIA NEW YORK to BARRANQUILLA, one way, $ U. S. 150. ECUADOR NEW YORK to GUAYAQUIL $ U. S. 205.00 [103] OUR SOUTH AMERICAN TRADE AND ITS FINANCING GUIANAS British Guiana NEW YORK to GEORGETOWN, one way, $ U. S. 140. Dutch Guiana NEW YORK to PARAMARIBO, one way $ U. S. 125. French Guiana NEW YORK to CAYENNE, one way $ U. S. 125. PARAGUAY NEW YORK to ASUNCION, one way via Buenos Aires, $ U. S. 580.00 PERU NEW YORK to CALLAO or LIMA, By steamship from CALLAO to SOLES Panama, C. Z. . . 286.00 Guayaquil, Ecuador 120.00 Paita, Peru . . . 83.60 Salaverry (Trujillo) 50.60 Mollendo . . . 62.60 Arica, Chile . . . 69.60 Iquique, Chile . . 97 .10 Antofagasta, Chile . 146.00 Valparaiso, Chile . 208.00 one way $ U. S. 260.00 By rail from Mollendo to: Cuzco, Peru . 34-40 La Paz, Bolivia 51 .30 Free baggage to Cuzco up to 70 Ibs. and to La Paz up to 150 Ibs. Charge for ex- cess is at rate of 20.00 soles to Cuzco and 24.35 to La Paz, per 220 Ibs. The cost of travel via steamship from Callao to the ports men- tioned is given in soles. A sole is approximately 50 cents U; S. currency. URUGUAY NEW YORK to MONTEVIDEO, one way $ U. S. 480. From MONTEVIDEO to CITY Salto by rail Paysandu by rail Colonia by rail ONE WAY 1 8. 60 Uruguayan gold 15 .00 Uruguayan gold 7.58 Uruguayan gold From MONTEVIDEO to principal cities in neighboring countries Buenos Aires, Argentine by boat 1 2 . oo Uruguayan gold Porto Alegre, Brazil, by boat . 46.00 Uruguayan gold Rio de Janeiro, Brazil, by boat 56.00 Uruguayan gold [104] HOTEL SERVICE IN SOUTH AMERICA VENEZUELA NEW YORK to CARACAS, one way % U. S. 70. Travel into the interior of Venezuela is expensive as it is usually by pack or mule train. HOTEL SERVICE IN SOUTH AMERICA r I ^HE HOTEL service throughout South America is patterned JL more after European than American standards. The rates, how- ever, follow the American plan, including meals. In Rio de Janeiro and Sao Paulo in Brazil, Montivedeo in Uruguay, Buenos Aires and Rosario in the Argentine, at Santiago and Valparaiso in Chile, and at Lima in Peru the service is excellent. Away from these cities, however, the service will be found to be second or third class. The generous early morning breakfast to which Americans as a rule are accustomed is somewhat startling to the South American hotel proprietor. The early morning collation throughout South America consists simply of coffee and rolls with sweet butter. Breakfast, which corresponds to our lunch, is served from 1 1 to 2, and dinner from 7:30 to 9 in the evening. It is customary to have coffee or tea and cakes in the afternoon from 4 to 6. Generally speaking hotel service is not excessive, at least it will not be found more so than it is in this country, though the taking of tips and the reminding of guests in this connection on the part of the hotel attendants will be found a highly developed and cooperative art. Restaurants as we know them in this country are unknown in South American countries. Cafes are popular, however, at which may be had drinks and refreshment of various kinds as well as sandwiches and coffee. The noon and evening meals, however, are served at the hotels. We have on file in our Foreign Trade Department at New York the names. and rates of the better class hotels in the principal cities of South America. [105] OUR SOUTH AMERICAN TRADE AND ITS FINANCING FOREIGN AND AMERICAN VISITORS MAY HAVE THEIR CORRESPONDENCE ADDRESSED IN OUR CARE OUR SOUTH AMERICAN friends, when visiting this country, are at liberty to have their correspondence addressed to them in care of The National City Bank of New York. American travelers to South America are likewise at liberty to have their correspondence directed to them in care of any of our branch banks. In our Foreign Depart- ment at New York will be found ample desk facilities for the accom- modation of visitors. Files of the prominent newspapers of Brazil, Uruguay, the Argentine, Chile, and Peru are likewise at the Bank for the accommodation of our South American friends. CORRESPONDENCE SHOULD BE IN SPANISH OR PORTUGUESE IF POSSIBLE WHERE possible, correspondence should be in the language of the country with which American merchants wish to establish relations; to Brazil, in Portuguese, and to the other South American countries in Spanish. The general rule followed is to reply to correspondence in the same language as that used in the letter received. We must remember that if we are endeavoring to establish relations in a foreign country, we should render the process as easy and agree- able as possible for the prospective client. When there is imposed upon him the necessity of paying to have correspondence translated, he feels precisely as we would, were we to be solicited for business in a language other than English. CATALOGUES THOUSANDS of dollars are lost annually to American merchants through inefficiency in the distribution of catalogues and general advertising matter in South American countries. Extreme care should be exercised in the selection of mailing lists. A hardware catalogue is of no use whatever to a dry goods or seed merchant any more than is the seed or dry goods catalogue to the [106] ADVERTISING AND TRADE MARKS hardware dealer and yet it is painful to note the absolute lack of discretion exercised by many American houses in this very vital mat- ter. Furthermore, catalogues or advertising literature to be effective must be printed in Portuguese if intended for distribution in Brazil and in Spanish if for the other South American countries. The forwarding of catalogues in English is a positive waste of time, effort, money and postage. For the convenience of our clients our Foreign Trade Department at New York has on file lists of firm names covering innumerable lines of business throughout the various South American countries. Catalogues of client firms forwarded to our South American branches are filed and cross indexed in our branch foreign department. Some of the branches publish a monthly trade sheet which is circulated among the local trade and in this are listed the catalogues received and the lines of merchandise covered. ADVERTISING IN SOUTH AMERICA IF, before entering the South American field, the line it is intended to introduce is one for which a demand might be created through the medium of advertising, the South American countries publish many reliable newspapers and magazines available for this purpose. Our Foreign Trade Department at New York has in its files the names of these periodicals with rates for advertising space therein, and will be pleased to furnish this information to its clients upon request. TRADE MARKS REGISTRATION IN SOUTH AMERICAN COUNTRIES IF AN American firm contemplates introducing a trade marked article or commodity into the South American market it is advis- able to have such trade mark or brand registered beforehand in the country or countries in which it may be desired to transact business. In some South American countries it is possible, owing to the lax- ity of laws in this respect, for anyone to register a trade mark or brand. Considerable trouble and expense have been entailed upon both American and European manufacturers in the past through the action of some unscrupulous person or firm in having made a prior registra- tion in South America of a trade mark or brand with the knowledge that the original owners contemplated opening in a certain market. [107] OUR SOUTH AMERICAN TRADE AND ITS FINANCING Foreign houses have likewise been known to take advantage of the law in this respect by registering the trade mark or brand of an Amer- ican product which if introduced would compete with a line they represented. An instance has come to our knowledge of one firm in a large South American city having registered more than fifty American trade marks covering products which the firm had reason to believe it was the in- tention of the owners to introduce. Where this has been done a settle- ment has had to be made with the unscrupulous registrar of the trade mark or brand before such mark could be used by the rightful owner in those countries where such prior registration had been made. The Buenos Aires Convention of 1910 provided for the Interna- tional Registration of Trade Marks and commercial names. The South American countries were referred to as the southern group, the north- ern group being represented by Costa Rica, Cuba, the Dominican Re- public, Guatemala, Honduras, Nicaragua, Panama, Mexico, Haiti, Salvador and the United States. Upon ratification of the convention by two-thirds of the countries in the South American group a central office is to be established at Rio de Janeiro. At this writing, the ratification of two of the countries in the group is still lacking to render operative the central office at Rio. The requisite two-thirds ratification has been effected by the northern group, in consequence of which the central registration office of this particular group is now operative at Havana, Cuba. Legislation giving effect to the convention in this country has been adopted by Congress and at this writing is in the hands of the Presi- dent for approval. Application for trade marks for the northern group may now be addressed to the International Bureau at Havana. Until the definite establishment at Rio de Janeiro of the office for the southern group it is advisable to address the Bureau office at Havana since eminent authority construes the convention as adopted as conferring upon Havana the right to afford registration in all countries signatory to the convention. To enjoy the benefits of this central registration the American appli- cant for trade mark or commercial name registration must pay, in addition to the charges of the country in which registration is first made, a fee of $50.00 which covers all expenses for registration in the other countries of the individual group. [108] FOREIGN HOUSES LOCATING IN NEW YORK Information as to further developments in governmental activity in this important matter may be obtained from time to time by ad- dressing the Commissioner of Patents at Washington. The services of our Foreign Trade Department are likewise at the disposition of inquirers in this connection. SEASONAL CHANGES THE SEASONS of the year in Brazil, the Argentine, Uruguay, Paraguay, and Chile are the reverse of those in the countries north of the Equator, their winter occurring during our summer and vice versa. A realization of this difference in seasons between countries north and south of the Equator will enable the American exporter to adjust his advertising and sales campaigns accordingly. This may also explain the reason for many complaints from merchants in that part of the world regarding delay in the receipt of seasonable merchandise. FOREIGN HOUSES ARE NOW ESTABLISHING PURCHASING OFFICES IN NEW YORK THE number of South American and European houses establish- ing purchasing offices in New York is perceptibly increasing and will continue to increase as world conditions approach more to normal. This has been found necessary during the strenuous times through which we have passed, and our foreign friends who have opened such offices are finding that the benefits accruing therefrom through the resultant concentration on their particular interests in this country far more than compensate for the expense involved. One large Argentine firm having a purchasing office in New York recently saved $30,000 on one order through having its own agent on the ground to devote his attention to its interests. LOCAL MANUFACTURING IN SOUTH AMERICA Argentina THE ARGENTINE is primarily an agricultural and cattle raising country. Lack of coal and iron must retard its industrial development for many years to come. What strides it has made in manufacturing [109] OUR SOUTH AMERICAN TRADE AND ITS FINANCING have been mostly in food and textiles. American shoes, however, even with the protective tariff on the home product, meet with much favor as the stock is better cured and the shoe is not only better made but retains its shape and wears longer. The textile industry while fairly well developed does not meet the requirements of the market and the opportunities for intensive Amer- ican development are very favorable. Most of the manufactured goods used in the country are of American and European importation. Brazil INDUSTRIALLY Brazil has advanced materially within the past few years. The field embraced is growing and now includes the manu- facture of cotton prints, food stuffs, drugs, woolen goods, cigars, cigarettes, beers, wines, shoes, carriages, wagons and ground coffee. Cattle raising is on a large scale, especially in the states of Rio Grande do Sul, Minas, Goyaz, Matto Grosso and Ceara. Chile THE ACTIVITY of Chilean manufactures is particularly marked in the following lines: Ready-made clothing, hats, cement, beer, mineral waters, industrial distilleries, refined sugar, canned fruits and vegetables, foot wear, tobacco and cigarettes. Colombia WOOLEN and cotton textiles, shoes, matches, cigars, ciga- rettes and Panama hats. The wool and cotton textile factories are quite modern. All manu- factures, however, are of a cheap quality. If the better quality is desired, imported articles are purchased. Ecuador WOOLEN and cotton textiles, shoes, matches, chocolate, soap and sugar. The products manufactured do not meet the requirements for home consumption. There is no export trade in manufactured goods. Paraguay LOCAL manufacturing in Paraguay is confined to furniture, soap and alcoholic beverages. [IIO] RESUME OF SHIPPING REQUIREMENTS Peru MANUFACTURING in Peru has not been developed. Furniture and the cheaper classes of cotton and woolen goods, foundry castings and parts, brick and tile, cotton seed oil and cake, Panama hats, shoes, biscuits, chocolates and candies are produced locally. There are a few flour mills, tanneries and other minor industries. Most of the establish- ments, excepting the hat manufactories, are comparatively small and their production is consumed locally. The exports of Peru are chiefly raw materials. Uruguay LOCAL manufacturing in Uruguay is confined to the city of Montevideo and is restricted to cloth, shoes, furniture, paper and sta- tionery, flour and food stuffs. Venezuela IN VENEZUELA shoes, leather work in general, soap, choco- lates and some glassware are manufactured in fairly good grades. Venezuela endeavors to protect its home manufactures by the im- position of excessive taxes on imported articles of the same kind. RESUME OF SHIPPING REQUIREMENTS IMPORTANT INFORMATION COVERING SHIPMENTS TO VARIOUS SOUTH AMERICAN COUNTRIES Argentina THE PRINCIPAL port in the Argentine is Buenos Aires. Sailings are maintained from New York, Mobile, and New Orleans. Shipments require Consular invoice written in Spanish. Cases, bales and packages may be marked either with a stencil or brush. It is likewise necessary that cases, bales and packages bear the shipping mark and number as well as the name of steamer by which goods are shipped. This should appear on two sides. The observance of this rule will facilitate release through foreign customs. Bolivia THROUGH bills of lading are not issued to interior points of Bolivia. Shipments for this country may be made via ports in Chile, Peru, Brazil and in the Argentine. Sailings are maintained from New [in] OUR SOUTH AMERICAN TRADE AND ITS FINANCING York via Peruvian and Chilean ports. Consular invoice covering ship- ment must be in Spanish. Cases, bales or packages should be plainly marked with either a stencil or brush with the number of the piece as well as the name of the steamer. In this connection, however, it should be noted that if shipment is to be made via a port in Chile, marking on case or bale must be with a stencil. Gross and net weights in kilos must likewise be marked on each piece, and these must agree with the weights as given in the Consular invoice and on the bills of lading. Brazil SAILINGS are maintained from this country from the ports of New York and New Orleans, touching at the Brazilian ports of Para, Pernambuco, Bahia, Rio de Janeiro and Santos. Consular invoice may be written in either English or Portuguese. If in English, however, a translation charge is made at destination. Cases or packages may be marked with either a stencil or brush. British Guiana THE PRINCIPAL port is Georgetown. Sailings are maintained from New York. No consular documents are necessary and no restric- tions are made as to shipping marks, weights, etc. Chile THE PORTS of Chile are Valparaiso, Talcahuano, Antofagasta, Iquique and Coquimbo. Sailings are maintained from New York and New Orleans. Consular invoices should be in Spanish. Markings on cases, bales or packages must be with stencil. The words "Gross Kilos'* with the number of kilos should be stenciled on each piece. Colombia THE PORTS of Colombia are Cartegena, Buena Ventura and Porto Colombia. Sailings are maintained from New York, Philadel- phia, Baltimore and New Orleans. Consular invoices should be in Spanish. Cases or packages may be marked with either a stencil or brush. Ecuador THE PORT of Ecuador is Guayaquil. Sailings are maintained from New York and New Orleans. Consular invoices must be in SHIPPING TERMS Spanish. Packages may be marked with either stencil or brush. The gross weight in kilos should be marked on cases or packages. Paraguay THE PORT of Paraguay is Asuncion. Sailings are maintained from New York, Mobile and New Orleans, via Brazilian, Uruguayan and Argentine ports. Consular invoice must be in Spanish. A certifi- cate of origin is required. Peru THE PORTS of Peru are Callao, Salaverry and Mollendo. Sail- ings are maintained from New York and New Orleans. Consular in- voices should be in Spanish. Packages may be marked with either stencil or brush. The gross weight in kilos should be marked on cases or packages. Uruguay THE PRINCIPAL port is Montevideo. Sailings are maintained from New York, Mobile and New Orleans. Consular invoice should be in Spanish. Cases and packages should be stenciled with marks and numbers. The regulations covering shipments to Uruguay state that marks on packages must be clearly and legibly stamped in indelible ink and in mold letters. Venezuela THE PORTS of Venezuela are La Guaira and Puerto Cabello. Sailings are maintained from New York. Consular invoice should be in Spanish. Packages may be marked with either stencil or brush. SHIPPING TERMS AND THEIR EXPLANATION IN QUOTING prices to foreign firms in which shipping terms are used extreme care should be taken to make clear the intention of such terms in order to avoid any possible misunderstanding or mis- interpretation, particularly where terms such as F.O.B. New York or F.O.B. Destination may easily become susceptible of different mean- ings. On sales to South America the terms frequently used are: OUR SOUTH AMERICAN TRADE AND ITS FINANCING F.O.B. Free on Board F.O.B. Destination F.O.B. New York (or other shipping port) F.A.S. Free Along Side C.I.F. Cost, Insurance and Freight C.&F. Cost and Freight The generally accepted interpretation of these terms is: F.O.B. Steamer UNDER these terms the seller agrees to place the goods on board steamer, subsequent risk and expense running for the account of consignee. F. O. B. Destination THESE TERMS presuppose payment by seller of all expenses up to the time of actual delivery of the merchandise to the point agreed upon. The terms "F.O.B. Destination" are susceptible of various con- structions and a distinct understanding should be had at the time these terms are quoted as to the significance it is intended to give to them. Destination could mean simply "arrival at the port in foreign coun- try." Under this construction if the steamer anchor some distance off port, lighterage and cartage would be for the account of purchaser. If actual delivery to the business house of purchaser is intended, then the terms should read F.O.B. Warehouse, or some such distinctive term which is not subject to an ambiguous construction. F. 0. B. New York THESE terms do not necessarily mean delivery to steamship wharf and might be construed to mean delivery simply to the New York terminal freight yards of the railroad carrying the goods to New York. Under this construction cartage and storage expenses from the date of arrival in New York to the actual sailing time of steamer would be for the account of purchaser. Under this construc- tion it is advisable that provision be made under the terms quoted to cover insurance for this intervening period. F. A. S. THESE terms presuppose the delivery by seller to steamer side and in the event of steamer being moored some distance from shore [114] SHIPPING TERMS would include the payment of lighterage to within reach of the ship's tackle. If steamer is alongside wharf, then these terms would mean de- livery at such wharf, subsequent risk and expense running for the account of purchaser. C. I. F. UNDER THESE terms the shipper sells his merchandise with the understanding that he is to defray all expenses involved in the delivery of the merchandise on board steamer and in addition that he will insure the goods for the trip and pay the freight thereon. In this con- nection, however, it is important to note that these requirements having been complied with, the obligation of the shipper terminates with the acknowledgment in the form of the bill of lading of receipt of the merchandise by the steamship agent or company, the risks of the voyage and the delivery of the shipment running for the account of the purchaser. Wherever possible it is advisable to quote C. I. F. Destination prices, instead of F. O. B. Factory or Port of Shipment. The reason for this is obvious as the purchaser in the foreign country, in the absence of having an agent at New York or at the port of shipment, has no means of knowing the cost of insurance or of making arrangements therefor or for the shipping of the order without incur- ring the additional expense of a freight forwarder or commission mer- chant at the port of shipment. Where "C.I.F. Buenos Aires" is quoted an Argentine merchant is in a preferential position as compared with that in which he finds himself on merchandise purchased F.O.B. Factory or shipping port, as the uncertainty is removed regarding fluctuating freight rates and costs of insurance. This tends materially to facilitate not only the original sale but likewise the disposition of the goods by the purchaser. THE COURTS of all commercial countries have decided upon the current acceptation of these terms in general use, but it is always in the interest of good feeling between business houses to have a distinct understanding as to the interpretation which is intended to be given to any terms which may be quoted. OUR SOUTH AMERICAN TRADE AND ITS FINANCING FOREIGN TRADE HOLD WHEN ONCE SECURED THE development of a permanent foreign trade requires as much care and attention to holding business once secured as it does to its original development, and as competition increases, the truth of this assertion becomes more apparent. As an aid to the development and retention of foreign business, we would offer the following sug- gestions. FIRST. That correspondence be in the language of the country in which client is located; that is, if the customer is a subject or citizen of that country, and if it is not known that he is familiar with English. There is likewise a prevalent complaint throughout South America as to apparent laxity in our methods of correspondence. It must be remembered that South American clients are many thousands of miles from their sources of supply, and inquiries should be answered imme- diately and in detail. If an order is received, and conditions render impossible immediate manufacture, this information should be com- municated immediately to foreign client, and if delay in shipping is occasioned for any reason, notice to this effect by cable or letter will be appreciated. In other words, it is advisable to keep foreign clients constantly advised as to the progress that is being made with their orders. In fact, the opportunity of corresponding in this manner should be taken advantage of, as in addition to placating a customer by keeping him informed there is an element of courtesy involved which is appreciated. SECOND. In selling, endeavor to give foreign client what he wants, and not just what you wish to sell him. The application of this prin- ciple is the basis upon which was constructed the vast foreign trade of England, France, and Germany before the war. THIRD. Conform strictly to the instructions of customers as to pack- ing, billing and the preparation of documents. It is well to assume that the foreign merchant is probably more familiar with the requirements of his own government and the customs or habits of his own trade than we can possibly be. FOURTH. Investigate the credit standing of those with whom you contemplate establishing relations. The information now in our credit files covering every country in South America should be of incalculable assistance to our clients in enabling them to grade their credit terms to conform to the financial and moral responsibility of their South American customers. [116] FUTURE OF AMERICAN FOREIGN TRADE AMERICAN FOREIGN TRADE ITS FUTURE THE POSITION of this country during the war was an extremely difficult one. Not only had we become for the time being the banker and supply house of the world, but the cataclysm of a world war with its imperative and immediate demands had placed almost insuperable obstacles in the way of our adequately answering this universal demand upon us. Now, however, that peace is again established the country appears to be slowly awakening to a realization that no nation of the world has ever had thrust upon it the foreign trade possibilities which are now opened up before us. Before the world conflict Germany and England were impelled by economic forces to develop external markets for their surplus products, inasmuch as their productive machinery was producing a surplus above that required for home consumption. The United States, on the other hand, to the time of the outbreak of the war had been growing with such tremendous strides that any prepara- tion for foreign trade was soon overtaken by the home demand. Now, however, with the termination of the war the productive capacity of all Europe will again be diverted to the interests of peace and competition for world markets must of necessity become keen. In this crisis if this country is to keep in productive activity the vast new forces which were created during the war to enable us to answer the demand of the world upon us for our products, we have no alternative but to enter actively into this competition in an endeavor to develop permanent markets for the surplus which these forces must inevitably create. With a view to meeting this competition the highest intelligence that can be spared from our various lines of business interested in foreign development should visit South America. This preliminary survey should not be left to salesmen. It must be remembered that in South America there are today approximately sixty-five millions of people. The field is a vast one and has heretofore been intensively cultivated by Europe. An axiom in foreign trade is that "Business follows Investment." The vast foreign commerce transacted before the war between Europe and South America was based primarily upon Europe's investment in South American bonds and public utilities of every description. The opportunities for such further investment are extensive and should now be taken advantage of by American capital. OUR SOUTH AMERICAN TRADE AND ITS FINANCING Within the past few years the great packing interests in this country have established large plants in Brazil, in Uruguay and in the Argen- tine and American mining companies are constantly augmenting their holdings in Chile and along the West Coast. Practically every line of American business effort is now represented in the various South American countries and the constant inquiries we receive indicate an ever increasing interest on the part of American business men, not only in South American trade development, but likewise in the possi- bilities of the southern continent for the investment of capital. The measure of our ability, therefore, to retain the foreign business which abnormal world conditions have temporarily diverted to this country will be the extent to which we intelligently cultivate the trade of our new acquaintances. If we will now bring to bear upon our efforts at reconstruction and the development of a permanent foreign trade that same intelligence and energy which we devoted intensively to the prosecution of the war, our efforts in this direction should meet with a like measure of success. We must remember, however, that the con- fidence of foreign merchants can be inspired only by properly pricing our goods for export; by according time where the credit standing of foreign client so warrants; by scrupulously adhering to instructions regarding packing and billing; by avoiding substitution without secur- ing the consent of client thereto, and in general, through endeavoring to impress upon our foreign friends by the manner in which we fill their orders our desire to develop a permanent foreign trade by apply- ing to the business with which they favor us those same high principles of scrupulous business probity which have built up the vast domestic commerce of this country. [118] INDEX FOREWORD 5 FOREIGN BRANCH BANKS 7 SERVICES RENDERED BY BRANCH BANKS 8 CREDIT SERVICE 9 Foreign Credit Data 9 Credit Data on American Houses Filed with our Foreign Branches 10 Commercial Department . . . . 10 FOREIGN DISTRIBUTING AGENCIES . . H Caution in the Arrangement of Exclu- sive Agencies 1 1 SELLING TERMS 12 INSTRUCTIONS FROM CLIENT . Substitution of Merchandise PACKING Packing and Import Duties Labels on Merchandise . FINANCING 17 The Open Account 17 Commercial Credits 17 Unconfirmed or Revocable .... 1 8 Confirmed or Irrevocable . 1 8 Clean Credit 19 Documentary Credit 19 Acceptance Credit 19 Revolving Credit 20 How COMMERCIAL CREDITS ARE OPENED 21 DRAFTS 27 Sight Drafts 27 Time Drafts 28 Usance or Tenor Sight and Time . 28 Drafts Clean and Documentary . . 28 Discounting Drafts 28 Drafts in Cover for Parcel-Post Ship- ments 29 Dollar Drafts 29 Rebating Drafts 29 Rates for Discounting Drafts ... 29 Negotiability of Drafts 30 Acceptance of Drafts 30 COLLECTION or DRAFTS 30 Rates 30 Payment 31 Privilege of Examination of Merchan- dise before Payment or Acceptance of Draft ..31 Instructions Accompanying Drafts . 31 Action by Foreign Bank on Uncollected Items 32 Sale of Merchandise under Uncollected Items 33 EXAMINATION OF MERCHANDISE IN SOUTH AMERICAN COUNTRIES BEFORE PAY- MENT OR ACCEPTANCE OF CORRE- SPONDING DRAFTS: Argentina 33 Bolivia 33 Brazil 33 Chile 34 Colombia 34 Ecuador 34 Paraguay 35 Peru 35 Uruguay 35 Venezuela 35 FOREIGN STAMP CHARGES: Argentina 36 Bolivia 36 Brazil 36 Chile 36 Colombia 36 Ecuador 37 Paraguay 37 Peru 37 Uruguay 37 Venezuela .37 PROTEST or DRAFTS: Advisability of Protest 38 Argentina 38 Bolivia 38 Brazil 38 Chile 39 Colombia 39 Ecuador 39 Paraguay 39 Peru 40 Uruguay 40 Venezuela 40 LEGAL SERVICES IN SOUTH AMERICAN COUNTRIES 40 SHIPMENTS FROM THE INTERIOR FOR EX- PORT 41 Shipments to Interior Points in South America 42 DOCUMENTS 42 Set of Documents 43 Consular Invoice 43 Insurance Certificate 43 Combined Shipments on One Set of Bills of Lading 44 BILLS OF LADING: Consignment of Shipments .... 45 "To Order" Shipments 45 Number of Ladings 46 Tax in South America on Bills of Lading 46 [H9J OUR SOUTH AMERICAN TRADE AND ITS FINANCING RELEASE or SHIPMENTS FROM CUSTOM- DOCUMENTS NECESSARY: Argentina ......... 47 Bolivia ......... 48 Bra/51 .......... 48 Chile .......... 51 Colombia ......... 51 Ecuador ......... 53 Paraguay ......... 53 Peru .......... 54 Uruguay ......... 55 Venezuela ........ 57 Kl-.l. I \M <>| SlIII'MI NI.S M)M C'llSIOM IN THE ABSENCE or DOCUMENTS FORMALITIES IMPOSED: Argentina ......... 47 Bolivia ......... 48 Brazil .......... 50 Chile .......... 52 Ecuador ......... 53 Paraguay ......... 54 P . eru .......... 55 Uruguay ......... 57 Venezuela ........ 57 BILLS or LADING MANNER or CONSIGN- ING: Argentina Bolivia Brazil Chile Colombia Ecuador Paraguay T P T cru Uruguay Venezuela BILLS or LADING ENDORSEMENT TAX: Argentina Bolivia Bra/il Chile Colombia Ecuador Paraguay T Uruguay Venezuela PERIOD AND CONDITIONS UNDER WHICH MERCHANDISE MAY REMAIN IN THE CUSTOM WAREHOUSE AFTER ARRIV- AL IN SOUTH AMERICA: Argentina ........ Bolivia ......... Brazil .......... Bahia ......... Pernambuco ....... Porto Alegre ....... 47 48 49 51 51 53 54 54 55 57 47 48 49 52 51 53 54 55 55 57 58 58 59 59 59 60 Rio de Janeiro 60 Santos 60 Chile 61 Ecuador 61 Paraguay 61 Peru 61 Uruguay 6a Venezuela 63 STORAGE FACILITIES IN SOUTH AMERICA: Argentina 63 Bolivia 63 Brazil 64 Chile 64 Colombia 64 Ecuador 64 Paraguay 64 Peru 65 Uruguay 65 Venezuela 65 INSURANCE 65 Blanket Policies 66 Argentina 66 Bolivia 66 Brazil 66 Chile 67 Colombia 67 Ecuador 67 Paraguay 67 Peru 67 Uruguay 63 Venezuela 68 1'OSIAOK UAH'S AND CONDITIONS AlMM.I- CADLE IN SOUTH AMERICAN COUN- TRIES 68 MAIL TIME TO PRINCIPAL CITIES IN SOUTH AMERICA 69 PARCEL-POST TO SOUTH AMERICAN COUN- TRIES 70 Argentina 70 Bolivia 71 Brazil 71 Bahia 74 Pernambuco 74 Porto Alegre 74 Rio de Janeiro 75 Santoi 75 Chile 75 Colombia 76 Ecuador 76 Guianat 77 Paraguay 77 Peru 77 Uruguay 78 Venezuela 79 PARCEL-POST GENERAL OBSERVATION . 79 Drafts in cover for parcel-post ship- ments 80 [120] INPKX CABLES FOREIGN EXCNANOI South American Monetary Value* FOREIGN WEIGHTS, MEASURES AND GEN- ERAL UNITS METRIC EQUIVALENTS IN WEIGHTS AND MEASURES . METRIC DRY MEASURE METRIC LIQUID MEASURE .... METRIC MEASURES or LENGTH . . . METRIC SURFACE MEASURES . LOCAL FOREIGN WEIGHTS AND MEASURES REDUCTION or POUNDS TO KILOS (REFER- ENCE TABLE) REPRESENTATIVES OR SALESMEN, CARE TO IE OBSERVED IN THEIR SELECTION SALESMEN'S LICENSES IN SOUTH AMERICA Argentina Bolivia Brazil Chile Colombia Ecuador Paraguay Peru Uruguay Venezuela . SAMPLES RULES GOVERNING CUSTOM v IN SOUTH AMERICAN COUN- TRIES: Argentina Bolivia Braiil Chile Ecuador Paraguay Uruguay Venezuela BRANCH OFFICES OF AMERICAN COMPAN- IES REQUIREMENTS IN SOUTH AMERICA: Argentina Brazil Chile Colombia Bolivia Ecuador Paraguay Peru Uruguay Venezuela RUBRICATION OR LEGAL REGISTRATION OF BOOKS OF ACCOUNT IN FOREIGN OFFICES LETTERS OF CREDIT AND TRAVELERS' CHECKS 80 81 81 81 81 84 5 86 u 7 7 ss ss If 9 89 So 90 90 00 90 9 9 9 91 91 91 91 N Q? M (I LETTERS or INTRODUCTION TO SOUTH AMERICA 101 TRAVEL To AND IN SOUTH AMERICA . . 101 Argentina 101 Bdivia loa Brazil 101 Bahia loa Pernambuco 101 Porto Alegre 101 Riode Janeiro .... .103 Santos 103 Chile 103 Colombia 103 Ecuador qq [121] 104 Paraguay ......... 104 Peru .......... 104 Uruguay ......... 104 Venezuela ........ 105 HOTEL SERVICE IN SOUTH AMERICA . . 105 FOREIGN VISITORS TO THIS COUNTRY . 106 CORRESPONDENCE RULES GOVERNING . 106 CATALOGUES ........ 106 ADVERTISING IN SOUTH AMERICA . . 107 TRADE MARKS REGISTRATION IN SOUTH AMERICAN COUNTRIES .... 107 SEASONAL CHANGES ...... 109 FOREIGN HOUSES Now ESTABLISHING BRANCH OFFICES IN NEW YORK . 109 LOCAL MANUFACTURING IN SOUTH AMER- i. \ Argentina ......... 109 Bra/il .......... no Chile .......... no Colombia ......... no Ecuador ......... no Paraguay ......... no Peru .......... ill Uruguay ......... in Venezuela ......... ill SHIPPING REQUIREMENTS Important in- formation covering Shipments to va- rious South American countries: Argentina ......... 1 1 1 Bolivia ......... in Brazil .......... in British Guiana ....... in Chile .......... in Colombia ......... 112 Ecuador ......... in Paraguay ......... nj Peru .......... 113 Uruguay ......... 113 uela ........ 113 SHIPPING TERMS AND THEIR EXPLANA- TION .......... 113 FOREIGN TRADE HOLD ONCE SECURED . 116 AMERICAN FOREIGN TRADE ITS FUTURE 117 OUR SOUTH AMERICAN TRADE AND ITS FINANCING INDEX BY COUNTRIES ARGENTINA Branches 7 Examination of Merchandise Before Acceptance of Draft 33 Stamp Charges 36 Protest of Drafts 38 Release of Shipments from Custom Documents Necessary .... 47 Release of Shipments from Custom in the Absence^of Documents Formal- ities Imposed 47 Bills of Lading Manner of Consigning 47 Bills of Lading Endorsement Tax . 47 Period and Conditions Under which Merchandise May Remain in Cus- toms Warehouse After Arrival . . 58 Storage Facilities 63 Insurance on Merchandise Under Un- collected Drafts 66 Mail Time To and Period in Which Re- ply may be Expected 69 Parcel-Post Rules Governing ... 70 Foreign Exchange Monetary Values. 81 Local Weights and Measures ... 85 (See also Metric Weights and Mea- sures). Salesmen's Licenses 87 Samples Rules Governing Custom Entry 90 Branch Offices of American Compan- ies Requirements in Connection Therewith 93 Cost of Travel from New York to and in the Argentine 102 Local Manufacturing 109 Important Information Covering Ship- ments in BOLIVIA Examination of Merchandise Before Acceptance of Draft 33 Stamp Charges 36 Protest of Drafts 38 Bills of Lading Manner of Consigning 48 Period and Conditions under which Merchandise may Remain in Cus- tom Warehouse After Arrival . . 58 Storage Facilities 63 Insurance on Merchandise under Un- collected Drafts 66 Mail Time to and Period in which Re- ply may be Expected 69 Parcel-Post Rules Governing ... 71 Foreign Exchange Monetary Values. 81 Local Weights and Measures (See also Metric Weights and Measures.) . 85 Salesmen's Licenses 88 9 1 Samples Rules Governing Custom Entry Branch Offices of American Companies Requirements in Connection There- with 97 Cost of Travel From New York, to and in Bolivia 102 Important Information Covering Ship- ments in BRAZIL Branches 7 Examination of Merchandise Before Acceptance of Draft 33 Stamp Charges 36 Protest of Drafts 38 Release of Shipments from Custom Documents Necessary .... 48 Bills of Lading Manner of Consigning 49 Bills of Lading Endorsement Tax . 49 Release of Shipments from Custom in the Absence of Documents For- malities Imposed 50 Period and Conditions under which Merchandise May Remain in Cus- tom Warehouse After Arrival: Bahia 59 Pernambuco 59 Porto Alegre 60 Rio de Janeiro 60 Santos 60 Storage Facilities 64 Insurance on Merchandise under Un- collected Drafts 66 Mail Time to and Period in which Re- ply may be Expected 69 Parcel-Post Rules Governing . .71 Bahia 74 Pernambuco 74 Porto Alegre 74 Rio de Janeiro 75 Santos 75 Foreign Exchange Monetary Values. 81 Local Weights and Measures . . .85 (See also Metric Weights and Meas- ures.) Salesmen's Licenses 88 Samples Rules Governing Customs Entry 91 Branch Offices of American Companies Requirements in Connection There- with 93 Cost of Travel from New York to and in Brazil 102 Local Manufacturing no Important Information Covering Ship- ments . .... 112 [122] INDEX CHILE Branches 7 Examination of Merchandise Before Acceptance of Draft 34 Stamp Charges 36 Protest of Drafts 39 Release of Shipments from Custom Documents Necessary . . . . 5* Bills of Lading Manner of Consigning 5 1 Bills of Lading Endorsement Tax . 52 Release of Shipments from Custom in the Absence of Documents Formal- ities Imposed 52 Period and Conditions under which Merchandise may remain in Cus- tom Warehouse After Arrival . .61 Storage Facilities 64 Insurance on Merchandise under Un- collected Drafts 67 Mail Time to and Period in which Re- ply may be Expected 69 Parcel-Post Rules Governing . . .75 Foreign Exchange Monetary Values . 81 Local Weights and Measures ... 85 (See also Metric Weights and Meas- ures.) Salesmen's Licenses 89 Samples Rules Governing Custom Entry 91 BranchOfficesof American Companies Requirements in Connection There- with 95 Cost of Travel from New York to and in Chile 103 Local Manufacturing no Important Information Covering Ship- ments 112 COLOMBIA Branches 7 Examination of Merchandise Before Acceptance of Draft 34 Stamp Charges 36 Protest of Drafts 39 Release of Shipments from Custom Documents Necessary .... 52 Bills of Lading Endorsement Tax . 52 Bills of Lading Manner of Consigning 52 Storage Facilities 64 Insurance on Merchandise under Un- collected Drafts 67 Mail Time to and Period in which Re- ply may be Expected 69 Parcel-Post Rules Governing ... 76 Foreign Exchange Monetary Values . 8 1 Salesmen's Licenses 89 BranchOfficesof American Companies Requirements in Connection There- with 97 Cost of Travel from New York to and in Colombia ....... 103 Local Manufacturing ..... no Important Information Covering Ship- ECUADOR Examination of Merchandise Before Acceptance of Draft ..... 34 Stamp Charges ....... 37 Protest of Drafts ...... 39 Release of Shipments from Customs Documents Necessary .... 53 Release of Shipments from Customs in the Absence of Documents Formal- ities Imposed ....... 53 Bills of Lading Manner of Consigning 53 Bills of Lading Endorsement Tax . 53 Period and Conditions under which Merchandise may remain in Customs Warehouse ........ 61 Storage Facilities ...... 64 Insurance on Merchandise under Un- collectcd Drafts ...... 67 Mail Time to and Period in which Re- ply may be Expected ..... 69 Parcel-Post Rules Governing ... 76 Foreign Exchange Monetary Values. 81 Salesmen's Licenses ...... 89 Samples Rules Governing Customs Entry ......... 92 BranchOfficesof American Companies Requirements in Connection There- with ......... 97 Cost of Travel from New York to and in Ecuador ....... 103 Local Manufacturing ..... no Important Information Covering Ship- ments ......... 112 GUIANAS BRITISH GUIANA Mail Time to and Period in which Re- ply may be Expected ..... 69 Parcel-Post ........ 77 Foreign Exchange Monetary Values . 81 Cost of Travel from New York to Brit- ish Guiana ....... 104 Important Information Covering Ship- ments ......... 112 DUTCH GUIANA Mail Time To and Period in which Re- ply may be Expected ..... 69 Parcel Post ........ 77 Cost of Travel From New York to Dutch Guiana ....... 104 FRENCH GUIANA Mail Time to and Period in which Re- ply may be Expected ..... 69 [123] OUR SOUTH AMERICAN TRADE AND ITS FINANCING Parcel Post 77 Cost of Travel From New York to French Guiana 104 PARAGUAY Examination of Merchandise before Ac- ceptance of Draft 35 Stamp Charges 37 Protest of Drafts 39 Release of Shipments from Customs Documents Necessary .... 53 Release of Shipments from Customs in the Absence of Documents Formal- ities Imposed 54 Bills of Lading Manner of Consign- ing .. 54 Bills of Lading Endorsement Tax . 54 Period and Conditions under which Merchandise may Remain in Cus- toms Warehouse After Arrival . . 61 Storage Facilities 64 Insurance on Merchandise Under Un- collected Drafts 67 Mail Time To and Period in which Re- ply may be Expected 69 Parcel Post Rules Governing ... 77 Foreign Exchange Monetary Values . 81 Local Weights and Measures ... 85 (See also Metric Weights and Meas- ures.) Salesmen's Licenses 89 Samples Rules Governing Customs Entry 92 BranchOfficesof American Companies Requirements in Connection There- with 97 Cost of Travel From New York To and In Paraguay 104 Local Manufacturing no Important Information Covering Ship- ments 113 PERU Branches 7 Examination of Merchandise before Ac- ceptance of Draft 35 Stamp Charges 37 Protest of Drafts 40 Release of Shipments from Custom Documents Necessary .... 54 Release of Shipments from Custom in the Absence of Documents Formal- ities Imposed 55 Bills of Lading Manner of Consigning 54 Bills of Lading Endorsement Tax . 55 Period and Conditions under which Merchandise may remain in Custom Warehouse After Arrival . . . .61 Storage Facilities 65 Insurance on Merchandise under Un- collected Drafts 67 Mail Time To and Period in which Re- ply may be Expected 69 Parcel-Post Rules Governing ... 77 Foreign Exchange Monetary Values . 81 Local Weights and Measures . . .85 (See also Metric Weights and Mea- sures.) Salesmen's Licenses 90 Samples Rules Governing Custom Entry 92 BranchOfficesof American Companies Requirements in Connection There- with 97 Cost of Travel From New York To and In Peru 104 Local Manufacturing 1 1 1 Important Information Covering Ship- ments 113 URUGUAY Branches 7 Examination of Merchandise before Ac- ceptance of Draft 35 Stamp Charges 37 Protest of Drafts 40 Release of Shipments from Customs Documents Necessary . . . . 55 Release of Shipments from Customs in the Absence of Documents Formal- ities Imposed 57 Bills of Lading Manner of Consigning 55 Bills of Lading Endorsement Tax . 55 Period and Conditions under which Merchandise may remain in Custom Warehouse After Arrival .... 62 Storage Facilities 65 Insurance on Merchandise Under Un- collected Drafts 68 Mail Time To and Period in which Re- ply may be Expected 69 Parcel-Post Rules Governing . . 78 Foreign Exchange Monetary Values 81 Local Weights and Measures . . .85 (See also Metric Weights and Mea- sures.) Salesmen's Licenses 90 Samples Rules Governing Custom Entry 92 BranchOfficesof American Companies Requirements in Connection There- with 98 Cost of Travel From New York To and In Uruguay 104 Local Manufacturing 1 1 1 Important Information Covering Ship- ments 113 [124] INDEX VENEZUELA Branches 7 Examination of Merchandise before Ac- ceptance of Draft 35 Stamp Charges 37 Protest of Drafts 40 Release of Shipments from Custom Documents Necessary .... 57 Release of Shipments from Custom in the Absence of Documents Formal- ities Imposed 57 Bills of Lading Manner of Consigning 57 Bills of Lading Endorsement Tax . 57 Period and Conditions under which Merchandise may remain in Custom Warehouse After Arrival .... 63 Storage Facilities 65 Insurance on Merchandise under Un- collected Drafts . 68 Mail Time To and Period in which Reply may be Expected .... 69 Parcel-Post Rules Governing ... 79 Foreign Exchange Monetary Values. 81 Local Weights and Measures . . .85 (See also Metric Weights and Meas- ures.) Salesmen's Licenses 90 Samples Rules Governing Custom Entry 93 BranchOfficesofAmerican Companies Requirements in Connection There- with 98 Cost of Travel From New York To and In Venezuela 105 Local Manufacturing ill Important Information Covering Ship- ments 113 [125] One Man cannot move a Mountain NO longer does one man finance a great enterprise thousands of investors pull together with their money and con- fidence. It is the business of the National City Company, through its more than fifty offices in leading cities, its trained repre- sentatives, and by correspondence, to bring the investor and investment opportunities together quickly and conveniently. A large number of attractive offerings appear on our current purchase sheet. Send for SZ 136. Facts for CAREFUL INVESTORS OUR book "Men and Bonds," giving in- formation on the follow- ing subjects will be sent gladly on request. Why we handle only carefully investigated investment se- curities. The wisdom of purchasing securities from a Company large enough to maintain far-reaching investigation service. The importance of buying in- vestment securities from a house with over so offices and international connec- tions and service. Why the careful investor se- lects securities from a broad range of offerings. How 10,000 miles of National City Company's private wires keep our offices in leading investment centers of the country in constant touch with our New York headquarters. Your advantage in dealing with a Company whose rep- resentatives talk with an average of 3,000 banks a day. Why these sales representa- tives are especially qualified to helpfully discuss your in- dividual investment needs. For a copy of this book, address our New York office, asking forsz 139. THE NATIONAL CITY COMPANY NATIONAL CITY BANK BUILDING NEW YORK BONDS PREFERRED STOCKS ACCEPTANCES