Page:The Czechoslovak Review, vol4, 1920.pdf/376

“One of the troubles is that people do not realize that although hostilities with guns have ceased, a much more serious kind of hostilities have commenced, i. e. an economic war.” (Extract from a private letter to the editor.)

The European markets are the magnet to which are attracted the export departments of all large American manufacturers. Some comprehend the necessities and underlying difficulties of doing business, while others have not the slightest conception. Probably this era of after war restlessness and nervousness is the most crucial in the world’s history and most difficult to understand.

Almost daily the map of Europe is changed, the destinies of villages, towns, cities and in fact, whole countries are changed by one stroke of the pen. This does not tend to make the task of the exporter any simpler.

The facts which the majority of the exporting managers overlook is that in certain localities, under normal conditions, the wares which they attempt to market are produced quantitively not only for domestic consumption, but for export. In many instances they are “carrying coals to Newcastle”.

Every conceivable form of good, using it in its broad sense, are being offered and the usual terms are cash against documents in New York. During the war this was a proper practice when the destinies of the various beligerents were still undetermined and hung in the balance. Now the fighting with the weapons is over and a great economic battle has set in. All of the European nations are striving to recuperate economically and to regain their former industrial and agricultural stamina. They strive to keep skilled labor occupied because every nation to exist must create wealth in order to be able to acquire other necessities essential to existence.

It is very fallacious to attempt to market sugar machinery in Czechoslovakia, which has been one of the leading producers supplying not only continental Europe and Asia, but even Cuba and South America. Some people cannot understand why Czechoslovakia cannot use sweetened condensed milk, but limits its orders strictly to evaporated grades. The reason is very simple. Czechoslovakia is the only continental nation which produces sugar in quantities sufficient to warrant its export, therefore, it would be the height of folly to buy sweetened milk and pay the resulting additional costs when evaporated milk answers the purpose and particularly when beet sugar is a domestic product. In fact, it might be said that Czechoslovakia is paying in gold for her purchases abroad because sugar is her gold. Without beet sugar Czechoslovakia would be no better off than a “property-poor” individual, possessed of non-revenue producing estates.

Czechoslovakia can buy, under existing conditions, only such limited quantities of necessities as its accumulated foreign credits, flowing as a result of its export of sugar, glass goods, machinery, lumber and earthenware products, will permit. Not all of the producing agencies of these commodities are operating to full capacity; each has a certain limitation set upon it by the lack of certain essential ingredients.

For years to come there will be a great demand in Czechoslovakia for American goods. The American exporter should familiarize himself with the requirements of this market. He need have no fear of the financial stability of the reputable business houses, for in addition to the purchaser’s financial responsibilty may be added the guarantee of any of the principal banks of Prague, which is permitted under the law, and which further testifies to the purchaser’s financial standing and integrity.

In harsh times harsh means may be applied. The travail is over. The readjustment era is at hand. While we all acknowledge that business is merciless, yet we must not overlook the fact that it may be tempered with common sense and its principles so applied that lasting benefits will accrue to the seller.

True, the United States governmental agencies do not look with much favor on foreign trade, credit financing, nor lend overmuch encouragement thereto, except by words of sagacious advice, still it is