Our exports of unsweetened crackers and biscuits in 1924 were 845,000 pounds, which was an increase over 1923, but practically the same as for 1913-14. The United States supplies practically all the demand for unsweetened crackers, while sweet biscuits are imported almost exclusively from Great Britain. Practically no wheat is imported from the United States, and our exports of flour declined from 158,780 barrels in 1913 to 73,362 barrels in 1924. Canadian competition is keen in this line. DRUGS AND CHEMICALS Our Venezuelan trade in drugs and chemicals is quite important, being valued at more than half a million dollars in 1924 and showing a steady increase during the past decade. Drugs make up the greater part of these exports, as there is not a large market in Venezuela for industrial chemicals, though there is a limited demand for them for use in the local candle, match, and soap factories. American drugs and proprietary medicines are very favorably known and widely adver tised. The United States dominates the market for drugs and chemicals, supplying more than 50 per cent of all imports, while Germany. Great Britain, and France furnish the greater part of the remaining 50 per cent. METAL PRODUCTS The market for metal products in Venezuela is not extensive. Our exports are chiefly barbed wire and galvanized roofing, which during 1924 amounted to 5,000,000 and 3,000,000 pounds, respectively. There is not a great deal of construction work being undertaken, so that the demand for structural steel and rails is small. Our exports of agricultural implements and machinery in 1924 were valued at $203,987, which is about the same as in the preceding year, but which represents a tenfold gain as compared with 1913. Great Britain is our cheif competitor in supplying agricultural implements and machinery. Other kinds of machinery taken by the Venezuelan market are flour-mill, grist-mill, sugar-mill, and textile machinery. AUTOMOBILES The market for American passenger automobiles and trucks has shown a steady development. In 1913 the number imported was only 126 passenger cars, in 1923 788, and in 1924 1,324. The increased demand is due to the improvement and construction of highways thorughout Venezuela. American cars dominate almost to the exclusion of all other makes, and it is believed that the market will continue to grow. PAPER Exports of newsprint paper to Venezuela in 1924 amounted to 1,176,627 pounds, and those of uncoated book paper to 502,098 pounds. Other important items were wrapping paper, writing paper. and envelopes. MISCELLANEOUS ITEMS Other items of interest in our exports to Venezuela during 1924 were 1,261 typewriters, 63,287 pounds of toilet soap, and 595,319 square feet of upper leather, chiefly whole kip. The local soap fac tories of Venezuela supply the demands of the market for laundry ap, while the local shoe factories supply the shoes, and there is little portation of these from any source. SUMMARY OF UNITED STATES EXPORTS TO VENEZUELA The following table shows (chiefly by volume) our leading exports to enezuela during 1913-14, 1923, and 1924: NOTE.-Owing to changes in classification of articles, it was impossible to obtain the 1913-14 figures in many instances, and their omission does not mean that there were no exports at that time. UNITED STATES PORTS OF EXPORT Though it is not probable that 95 per cent of all our exports to Venezuela originated in the New York district, official statistics show New York as handling that percentage of these exports. About 4 per cent of such exports are sent through New Orleans and 1 per cent through Baltimore and other ports. The American manufacturer exporting to the Venezuelan market should investigate in order to ascertain which is the most favorable port for the clearing of his product, as any saving in freight, although his quotation may be f. o. b. cars at factory, will benefit the Vene zuelan importer and aid American goods in meeting European price competition. It is thought that the west coast of the United States, which is a large consumer of coffee and cacao, should be able to build up direct trade by water routes for the importation of these products from Venezuela. Steamers now routed from the west coast of the United States to the Atlantic ports of South America would probably find it profitable to stop at Venezuelan ports, taking on the outward voyage such things as canned salmon and canned and dried fruits and on the return voyage coffee and cacao, which are practically an all-the-yearround item of export freight from Venezuela. TERMS OF CREDIT Prior to the World War the Venezuelan merchant demanded and obtained long terms of credit from European manufacturers, but since he has been buying from the United States he has adjusted himself to shorter terms. Reputable merchants in Venezuela are now accustomed to getting 90 to 120 days' sight from American manufacturers. The matter of credit, however, is something to be determined by the facts of the individual case. Local banks in Venezuela, most of which have American connections, furnish adequate facilities for the collection of drafts in all the commercial centers. The local interest rate is very high-from 10 to 12 per cent-so that it is to the advantage of the Venezuelan importer to get the foreign manufacturer rather than the local banks to carry him. Bills of lading are not necessary in order to obtain possession of goods shipped to Venezuela, the customhouses requiring only the presentation of the Venezuelan consular invoice or a copy thereof for delivery of the goods to the consignee. Therefore, if shippers wish to insure payment or acceptance of draft before delivery of goods, they should arrange to have the shipment consigned directly to some bank, which upon payment or acceptance of the draft will indorse the consular invoice over to the purchaser or importer. Price quotations should be c. i. f. some Venezuelan port, if possible, though quotation should specify that it does not include special port or pier charges at the port of entry. When sending a salesman to Venezuela it would be highly advantageous for him to be able to quote prices c. i. f. a Venezuelan port, for in so doing he has gone a long way in securing the good will of his customers. Where it is not possible to quote c. i. f. prices, rates should be quoted f. o. b. an American port in preference to f. o. b. factory. Since Venezuelan consular fees are charged upon an ad valorem basis, it would be well for the manufacturer to have it plainly understood that prices do not include consular fees. A weakness of the commercial system of Venezuela is the great number of small merchants who attempt to conduct business and import directly on too small a capital. Also, successful merchants are inclined rather to withdraw their profits from the business and invest them in real estate or in foreign securities. American concerns have been criticized in Venezuela for being too ready to sell to the small merchant, who is the legitimate customer of the large importer and wholesaler. It is much better to place a few large orders with big firms which have ample capital to meet their obligations than to place many small orders. The small orders mean increased worry and probably a larger percentage of poor accounts, and it may mean the loss of orders from the large importer when he learns that the exporter has already sold to his customers. PACKING FOR THE VENEZUELAN MARKET Since all the important trading centers of Venezuela have adequate transportation, no special packing requirements are necessary. Packing should be made as light as possible without jeopardizing the safety of the goods, as customs duties are assessed upon the gross weight of the package. Textiles should be packed in pressed waterproofed bales with iron strapping. A great many articles (such as shirts, underwear, and cotton stockings) which are shipped from the United States in packing boxes might better be packed in pressed bales. There is no objection on the part of the importers to the payment of packing charges for labor and material used, as the packing material is invariably used again for making shipments to the interior, and if not obtained with the goods would have to be imported as a separate item. Shipments of goods destined for the Orinoco River should be packed in square boxes or bales, as all freight will have to be carried up steep river banks, and loss frequently occurs through round packages rolling into the water. In shipping to Venezuela, as elsewhere, the instructions of the importer regarding packing should be closely followed, as he knows what is best suited to protect the goods and to avoid undue payment of duties. Great care should be used in making out the Venezuelan consular invoice of goods, as even slight errors in weights or description will cause the importer to be heavily fined by the customs authorities. Declarations or invoices must be made out in the terms of the Vene-zuelan tariff law-"jamones," for instance, not being the proper declaration for ham, though a literal translation of the word; they should be invoiced as "despojos animales." There are numbers of other instances of special terms that must be used. The American consul at Puerto Cabello reports that on a shipment valued at $16, the duty on which would have been $20, he was forced to pay $35 in duties and fines, and had the local officials imposed all the penalties possible he would have been compelled to pay over $300. Even allowing confiscation of the goods does not absolve the consignee from payment of duties and fines, unless he refuses to accept the shipment before 4 days have elapsed. ADVERTISING METHODS Catalogues well arranged and printed in Spanish are considered as one of the best means of advertising in Venezuela. Catalogues in English, unless specially requested, are of very little interest to the Venezuelan importer. As a rule catalogues are highly valued by Venezuelan firms and are kept on file and referred to frequently. They are also closely examined for new and attractive goods which it is thought might have a ready sale in the country. Catalogues should give weights and measures both in the English and in the metric system, as this will greatly assist merchants in calculating import duties and freight and in making comparisons with similar goods from Europe. The Venezuelan importer is a shrewd business man and takes advantage of comparative offerings from all sources. carefully comparing prices from Manchester, Liverpool, Hamburg, and New York, and taking into account the difference in time, freight rates, and other items. Catalogues should be sent directly to the importers, as very few dealers go to the American consulates in the country to examine such matter. Catalogues should, where possible. show an illustration of the factories or buildings of the firm, as the importers like to feel that they are doing business with an important concern. Advertising in the better known English-Spanish magazines or Spanish magazines published in the United States-nearly all of which can be found in the clubs, stores, chambers of commerce, and homes of the merchants in Caracas, Valencia, Puerto Cabello, and Maracaibois productive of good results, especially if a picture of the article or goods is presented. Local newspapers in the large towns are considered as good mediums for advertising, but any printed advertising in Venezuela reaches only a limited number of people, as not more than 20 per cent of the popu lation is literate. The newspapers of Caracas circulate throughout the entire country and are closely read. An examination of a Caracas daily taken at random shows about 60 advertisements, and of these 9 were for American proprietary medicines, 2 for American automobiles. 18 inserted by local importing houses for miscellaneous goods, and 10 for amusements such as motion-picture houses. Only in the case of some of the American proprietary medicines were cuts made in the United States used. Advertising in the daily papers does not seem to have been developed in Venezuela to the extent that has been done in Colombia, where the dailies show more advertisements and better cuts. Owing to the large number of people who can not read, a good trademark of some simple and striking design is of great value, as the poorer people largely determine their purchases on the basis of trade-marks with which they are familiar. Designs of some familiar object, such as the outline of an alligator, a monkey, or a palm tree, are suitable and should be brought to the attention of the nonreading public by means of bright-colored posters displayed about the cities and towns. The less reading matter used in such displays the better. Advertising by motion pictures in the theaters is also an excellent method and reaches a large number of the people, even in the smaller towns. The practice of writing a person al letter, or sending the firm's card of greeting at Christmas, New Year's, and other holiday seasons |