EXTENSION OF AMERICAN TRADE IN RUSSIA.

Parties in New York State have written to this office requesting certain information relative to the best means for the enlargement of trade in Russia, and inasmuch as it is of a character to interest all American merchants who are trying to export, I send my reply to the Department.

The questions asked deal with Russia, the possibilities of increasing trade in or introducing American goods into that country; if it is advisable to put catalogues for distribution in Russia in French or German, and if catalogues in French would be worth anything for distribution in Germany. They ask also for such facts and information regarding Russia as I am able to add.

There are many ways of doing business, but there are not many that excel those employed at home. The best way to build up a successful export trade is to carefully go over the ground to be covered, studying it in its minutest details. To do this well, an expert is almost indispensable. By expert, I mean a man familiar with the goods to be sold, their qualities, application, etc. Consuls can never hope to do more than point out opportunities in a general way. This they do quite successfully. The man who goes out to survey the ground should, if possible, speak the language of the people he is to study. This is not, however, an absolute necessity. What is wanted most at first is a man of brains to go over the territory studying its wants, possibilities, etc. Export trade differs from the home trade in this: At home, we know the people with whom we are to deal; in export trade we do not. This is a much more important factor than appears at first glance. Foreigners are affected by prejudices, and it is wrong to laugh at these prejudices. They must be overcome, and consuls can be of incalculable service in pointing out how best to overcome them. Our merchants must make up their minds to adapt themselves to the business methods of the people among whom they want to sell. This is law and gospel for those trying to win foreign markets.

After going over the ground and finding a good field, the next step is to learn conditions of sale, whether goods can be sold for cash or on what time. Russia, because of the old system under which goods were bought at the annual Nizhni Novgorod fairs, will demand long terms in which to make payments. This has changed to some extent, but in most parts of the Empire one will still find the long-term system in vogue; hence, anyone wanting to do business with Russia must be prepared to wait six months or more—in

many cases a year-for his money, nor will liberal discounts for cash do away with more than a very small percentage of these periods.

The next point is the kind of money to be paid, whether it is fluctuating or liable to fluctuate. Credits must be studied. In a country where so much business is done on long credits, one would imagine that a system like Dun's or Bradstreet's would be adopted. I regret to say that the system in Russia is very far from perfect, although it is fast improving.

The next step is how best to bring goods to the notice of those to whom it is desired to sell. others have to be spoken for.

Some goods speak for themselves; There are several methods that may be successfully used to make goods known in the market. The best undoubtedly is to open a branch house, but that is very expensive; the next best plan, and one that commends itself because of its cheapness, is the employment of a resident agent-one who can give all his time to the business. A good plan is to pay him entirely or in part on commission. Next to this, and still cheaper, is to get agents already doing business in the districts to handle the goods. These "general agents" must be watched, however, as they have been known to suppress goods of one firm for the purpose of favoring a rival. A good plan would be for half a dozen or more houses to combine and send out a reliable man to represent them, allowing him to sell partly on commission and partly on salary, Half a dozen hardware houses, half a dozen or more paint, oil, and varnish makers could do this, taking care to get no conflicting parties connected with the same man. In selecting agents, too much care can not be exercised. In the first place, a firm of young men, without a dollar in the world above the capital invested in their business, may beat an old house so rich that it can not keep track of its possessions. Hustle has more to do with success in business than has almost any other factor. Once an agent has been selected, give heed to his advice. Intelligent agents ought to know best what is wanted in the territory covered. A little liberality goes a long way in winning new markets.

The next method-sending catalogues-is the poorest of all, and I hesitate to commend it. Still, it has one or two things in its favor. Parties interested in getting out catalogues will, of course, study the field in which they are to be distributed. Catalogues serve sometimes as advance agents, arousing interest; but they always do this best when printed in the language of the people to whom they are sent. The thing most needed about catalogues, if they are to be useful, is oftenest neglected, viz, the giving of prices. Catalogues lacking this essential element in nine cases out of ten are consigned to the wastebasket. In cases that call for the metric

measurements, do not give measurements common in the United States. This is very important. Few people are familiar with foreign weights, measures, etc. Let the language accompanying drawings or illustrations be so plain and so simple that a mistake will be practically impossible. It will be wiser to put catalogues intended. for distribution in Russia in French than in German, for almost all educated Russians read, write, and speak French; and catalogues printed in French can and no doubt will be read in Germany. Of course, it will pay much better to put catalogues into the language of the land in which one intends to sell.

There are half a dozen "don'ts" that are well worth heeding. Don't abbreviate. Who over here is familiar with English abbreviations? Don't neglect your correspondence; it pays to answer letters promptly upon receipt, if only to say: "Yours received; will give it immediate attention." Don't fail to find out foreign postage laws or regulations and comply with them, always making sure to put on enough stamps to carry letters or samples to their destination. It is the custom in most countries to collect double postage on letters lacking the necessary amount. Put important letters beyond the peradventure of miscarriage. Don't mix up discounts, terms of payment, etc. Try to have everything clear before the first shipment is made. Don't have goods of a quality below samples. Packing is a very important factor; don't pack as if you never expected to sell another bill of goods. Herein the Germans excel, and it pays. There are few things more exasperating than to wait a long time for an article and have it come unfit for use. Don't, after you have gone to the trouble of picking out an agent, be forever doubting his honesty. He may find it necessary to do expensive things, and you may find that these pay. Don't expect too much the first year. The public has to find out the advantages of your goods. Don't despair if you don't do as much the first six months as you expected. It takes time to win a way in new, unknown, and hitherto untried markets. If you give a man a good field to operate in, don't discourage his efforts by dividing the territory into small, nonpaying parcels. Don't hesitate to consult consuls, who are nearly always well posted as to the possibilities of their districts. Don't fail to advertise in the best export papers of our own and other countries. It pays. Don't neglect the export organizations which are doing so much to make our manufactures known abroad. Don't put off till to-morrow what should be done to-day. The export trade is growing more and more important and we must go on and out or shut up a great many shops. Do what other successful nations are doing to get foreign markets, but do it first, if possible.

Russia has many points of resemblance with the United States.

It must not be forgotten that Germany has already gained a very important position—in fact, a commanding one-in Russian trade. Not only has she large amounts of capital invested, but she has a large number of her people there. The banking business is very largely in German hands or under German influence. Many of the mills now being built all over Russia are going up under German directors and are being paid for with German capital. German weavers and spinners are exploiting the entire Empire. It is time for us to take a hand.

The field open to us is enormous. Russia will want for a long time the same kinds of tools, implements, and machines that we have used. It has mines to open, oil fields to drain or exploit, forests to cut down, mills to build, roads, railroads, and bridges to construct. All kinds of time and labor saving machines will be wanted. One ounce of effort put into Russia will yield better results than tons in Germany and other parts of this old continent. Germany, Belgium, France, England-all of them—are aiming for the same goal-a foothold in Russia. An effort now, before the important parts are all taken, will pay much better than later on. The disposition of Russia towards our people is very favorable.

CHEMNITZ, August 4, 1899.

J. C. MONAGHAN,

Consul.

AMERICAN COMMERCE IN TURKEY.

I inclose for the Department's information a translation into English of an article which recently appeared in the Cologne Gazette. The article has also been translated into Greek and published in the papers of this city, and comment has been made in regard to German vigilance in contesting every step taken by other nations for a commercial foothold in the Levant.

The manufacturers and exporters of the United States should understand that their German competitors are extremely watchful and aggressive in their commercial work in this country, and the energies of their consular officials and subordinates are freely given to this branch of the service. I note these facts for the purpose of informing the Bureau of Foreign Commerce and those interested in the export trade that there is pressing necessity for earnest and united effort, if any marked advance is to be made in behalf of American commerce.

A direct steamship service is not to be maintained and made permanent without the cordial cooperation of exporters; and the agricultural exposition and the warehouse for American goods about to

be established in this city will not be fairly representative of American progress and interests, unless they have active sympathy and support from the United States.

Those interested in our export trade should unite in supporting these enterprises,* instead of dividing their patronage among rival steamship companies, and appointing a large number of agents. whose individual interests will be too small to justify an active and aggressive competition.

CONSTANTINOPLE, September 4, 1899.

CHAS. M. DICKINSON,

Consul-General.

TURKEY AND AMERICA.

[Translated from the Cologne (Germany) Gazette.]

Greater trade interests are being developed between Turkey and the United States. Through the activity of the United States consul-general at Constantinople, a steamer line has been established by Messrs. Barber & Co., to ply between the American and Turkish ports. Ali Ferrouh Bey, Ottoman minister at Washington for the past five years, has been working to establish better relations between the two countries. Three months ago, it was reported by the newspapers here that Ferrouh Bey's mission was to obtain the appointment of Caleb Witeheat at the post of general director of Turkish industry. There is also attributed to him the application made to the American Minister of Agriculture, asking that two professors, one an engineer and the other a manufacturer of much experience, should be sent to Turkey to establish agricultural schools. The fact is that Mr. Witeheat will be director of a factory, which, under the superintendency of the Turkish Minister of Agriculture, will prepare (or make) agricultural machines and implements. It is not a question of opening agricultural schools, but it seems desirable to invite men who can teach the people of Asia Minor how to handle the best agricultural machines and implements.

It has not, however, been decided yet that the Americans shall have the preference in this work. A few days ago Dr. Herman Schoenfelt, a German-American, was appointed Turkish consul-general at Washington, and that appointment was made with the view of further developing the relations between the two industrial countries. He does not accept the idea of those that maintain that closer relations between Turkey and the United States may prejudice the German interests. Ali Ferrouh Bey is a great friend of the Germans, whose activity in Asia Minor contributes much to the development of the country. The United States may compete with Germany in some things, but it is entirely certain that the industrial strength of Turkey will develop still more the Turkish-German commerce.

* See CONSULAR REPORTS NO. 224 (May, 1899), p. 76, and No. 228 (September, 1899), p. 184.