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U. S. DEPARTMENT OF COMMERCE
- R. P. LAMONT, Secretary
H `... BUREAU_QF FOREIGN AND DOMESTIC COMMERCE

William L. COOPER, Director
ñRED-FRUIT INDUSTRY AND TRADE

OF SOUTH AFRICA
Trade Information Bulletin No. 676
©5
G(G UNITED STATES
covernment PRINTING OFFICE

WASHINGTON : 1930
For sale by the Superintendent of Documents, Washington, D.C. - - - - Price 10 cents

FOREWORD
As one of the regions where the production of fruit is increasing,

the Union of South Africa is of interest to dried-fruit producers and
exporters in the United States. While no final figures are available,
the estimated fruit crop for 1928–29 is given at 12,380,000 pounds, of
which 6,728,500 pounds were exported. Dried apricots lead in both
production and exports, with a total of 3,289,000 pounds exported
from January to September, 1929. Sultanas and raisins are next in
importance.
The United Kingdom is the largest single customer for South
African dried fruit, taking over half of the total. New Zealand and
central and eastern Africa are also important markets for some of
the dried fruits.
This bulletin outlines the history, present status, and prospects of
the fruit industry in South Africa and should prove .# interest to
American exporters of dried fruit. Those desiring further informa
tion on this subject are invited to correspond with the Foodstuffs
Division of the Bureau of Foreign and Domestic Commerce.
WILLIAM L. CoopFR, Director.
Bureau of Foreign and Domestic Commerce.
FEBRUARY, 1930.
(II)
DRIED-FRUIT INDUSTRY AND TRADE OF SOUTH
AFRICA
By Cecil M. P. Cross, American Consul, Cape Town
PRODUCTION
No figures are available as to the total production of dried fruit

in the Únion of South Africa. The only statistics which are as yet
compiled are those relating to the exports of the dried product.
| Those closely in touch with the industry, estimate that the exports
represent approximately 50 per cent of the total production.
The applicability of this generalization varies somewhat with the
different varieties, and the proportion exported must rise as the quan
tiy produced increases, because the small size of the domestic market
strictly limits the potential consumption. - - -
It is probable that in the case of apricots, now the principal dried

fruit exported, fully 70 per cent of the production is already being
sent out of the country. On the other hand, probably 90 per cent of
the prune production is consumed locally.
The following table gives the comparative exports for the season
so far as yet available: From the table an approximation of the
production can be obtained.
ExpoRrs or DRIED FRUIT FROM THE |UNION OF SOUTH AFRICA
[In thousands of pounds]

-
January- January- Kind January— January–

Kind tember, September, 1In September, September,
1928 1929
sepſ; 1929
--|_-l-T
3,289 20|------------
1, 173 81 63
1, 133 2 ------------
6 (1) 3
22
368 Total--------------- 7,659 6,367
"Less than 500 pounds.
WaS sº i.hese figures

It wil that the total export in 1928–29
# 1927-28. The decreases took place
that
Principally in º and raisins. This decline was not offset by
the notable increase in apricots or peaches.
PRoDUCTION IN 1928–29
4pricots. The production of dried apricots during 1928–29 was
the lar in South Africa. This increase represents
probab ;º: . the coming into bearing of the trees in the
95272–80 (1)
43)4C3.
2
Golden Valley near Somerset East. According to the latest figures,

approximately 700,000 pounds of dried fruit were produced in that
district, and of this total some 600,000 pounds were exported. This
represents over 60 per cent of the increase for the year.
As a whole, the season of the other apricot-growing districts was a
decided success, and the quality of the fruit appears to have led to a
somewhat larger proportion than usual being dried. Nominally,
between 60 and 75 per cent of the apricot crop of the western part of
the Cape Province is dried, approximately 20 per cent made into
jam, and the balance consumed as fresh fruit. Only very small
quantities are exported in the fresh state. During the 1927–28 sea
son it seems probable that fully 75 per cent of the production was
dried. This was due primarily to the success which the South
African dried apricot met on the market of New Zealand during the
previous year.
Peaches.—The production of dried peaches in South Africa dur
ing the period January–August, 1929, was nearly 50 per cent above
that of the previous year, because of an unusually good season.
Peach growing has never been the notable success in South Africa.
that apricot growing has proved. Moreover, the drying has not
achieved the perfection of the Californian product, owing princi
pally to the lack of the necessary machinery to remove the “down ''
during the process. Most of the peaches are consumed locally, and
it seems probable that the exports represent considerably less than
40 per cent of the production.
Sultanas.-The sultana situation in South Africa has for several
years been very unsatisfactory. Ever since the adoption in 1926 by
the English authorities of a restriction of the sulphur content in
sultanas to 750 parts per million the South African industry has
suffered severely. It has proved impossible to produce satisfactorily
under South African conditions a bleached sultana containing less
than 780 parts per million sulphur dioxide. The South African
sultana also seems to lack sufficient sugar to make it possible to be
dried successfully in the shade, because the climate has a hot sun
and cool shade. The difficulty during the 1928 season was increased
by late rains coinciding with the drying season. Production was
very adversely affected, declining to less than half of the 1927–28
SeaSOI).
Raisins.—The failure of the raisin crop was due primarily to the

unseasonable rains and resulted in most of the fruit being turned into
wine. The exports fell to about 40 per cent of those of the previous
year. The South African raisin seems unable to compete success
fully with the Australian or the Californian under present condi
tions. The decline in exports was also due in part to the existence
of large stocks in London warehouses, which discouraged further
shipments. Trade figures show that the following amounts existed
in London at the beginning of the years indicated:
Long tons
1927----------------------------------------------------- 1, 415
1928___ -- - __ 1, 459
1929–---------------------------------------------------- 1, 756
The depression resulting from these stocks, and untimely rains

during the ripening season, causing the berries to burst or interfering
with the drying, has created a strong tendency during recent years
3
to use the grapes for wine instead of raisins. The Wine Growers’
Association has become alarmed at the danger of the local market
being flooded with a cheap, inferior wine, and during the 1928–29
season offered a bounty of 1d. per pound on raisins for the purpose
of stimulating production. As the export returns show, these re
sults were not by any means entirely successful, but were sufficiently
so to cause the association to decide to repeat its offer this season.
It was stated at the meeting of the Central Executive of the Worces
ter Farmers’ Association that last season 90 per cent of the farmers
received only 2%d. (5% cents) per pound for their fruit. The 1d.
bounty is included in this price, so that its importance is evident.
Pears.-The 1928–29 pear season in South Africa was, compara
tively speaking, a failure. No dried pears were exported, and local
stocks are exhausted except for second grades. The reason for the
failure of the crop appears to have been partly the alternating char
acteristics in the South African pear yield, which made the 1928–29
season an “off” year. In addition, the demand for fresh fruit was
so large that practically all the crop was exported or consumed
locally in that state. Canners found it very difficult to obtain suſli
cient supplies.
Currants.-The currant yield for 1928–29 was somewhat larger
than usual, and because of the situation in the European market,
over 2,000 cases were exported. The growing of currants, however,
is a mir or industry and does not promise to develop greatly.
Prunes.—The prune yield for 1928–29 was somewhat better than
in previous years, in spite of the fact that prune trees are constantly
being uprooted and replanted by other varieties. . The shortage in
the California crop probably accounts for the substantial increase
in exports, which amounted to over 300,000 cases. Most of these
prunes are being sent to central and eastern Africa. The quality of
the South African prune restricts its markets to those where consid
erations of costs of transport and other special factors are favorable.
Apples.—The apple crop for 1928–29 is reported to have been
larger than in previous years, owing to the coming into bearing of a
number of new orchards. The preparation of apple rings, how
ever, has not yet been established on a large scale for these orchards,
and the size of the crop was not reflected in the exports of dried
fruit. It is very doubtful that South African apple rings can com
pete on a price basis with those of other countries. They are, how
ever, becoming an increasing factor in the South African market,
where fully 90 per cent of the production is disposed, and find some
market in northern and eastern Africa.
It is reported that over 1,000,000 apple trees have been planted in
the Somerset East district, about half of which have reached the
bearing stage. Many of the trees are already 6 to 7 years old, but
the bad conditions which have prevailed for the past three years in
that area have so retarded their growth that in development they
are not further advanced than normal trees of 3 years of age.
The ultimate production from that district is estimated at from
100 to 150 pounds of fresh fruit per tree, and on this basis it appears
that an estimate of 14,000,000 pounds for the total annual production
is very conservative, even taking into consideration the immaturity
of the trees. Preparations are being made to dry approximately
4
12,000,000 pounds of fresh fruit, which should produce 2,400,000 of

the dried product. The culls and the inferior fruit will be pulped
for jam making at Port Elizabeth.
Estimated total production.—The estimated total production of
dried fruit in 1928–29 is shown by the following table:
SouTH AFRICAN PRODUCTION AND EXPORTS OF DRIED FRUIT IN 1928–29
[In pounds]
|
Eind |Production | Exports Kind Production Exports
Apricots ----| 4, 500,000 || 3, 500,000 750,000 400,000

Sultanas ----| 2,000,000 | 1, 200,000 25,000 500
Raisins----- ----| 2,000,000 | 1, 250,000 5,000 3,000
Prunes----- III 3,000,000 || "350,000
Apples-------------------- ió0,000 25,000 | 12,380,000; 6,728,500
Quality.—The quality of the 1928–29 crop of dried fruit was, on

the whole, good, although the occurrence of rains throughout the
drying season somewhat affected the raisins. The South African
products took first prize at the Imperial Fruit Show held in Eng
land in October. The entries of the South African Dried Fruit
Co. were judged finest of all classes—currants, bleached sultanas,
unbleached Sultanas, raisins, muscatels, pears, apricots, peaches,
apples, and prunes. Second prize for apricots went to the Golden
Valley Estates. The competition was confined to Australia, but the
results indicate a very promising production.
PROSPECTS OF FUTURE PRODUCTION
The general tone of the South African dried fruit industry is

hesitant. With the exception of the apricot industry in Somerset
East, nine-tenths of the dried fruit produced for export has been
produced within 150 miles of Cape Town. The dried-fruit industry
has grown up as an adjunct to the export of fresh fruit. This devel
opment has been based largely on the existence of the substantial
tariff preference of the United Kingdom, amounting in some varie
ties to 7s, per 112 pounds as in the case of raisins and sultanas.
The belief that the United Kingdom Government was contemplating
abolishing this preference has naturally created a large degree of
uncertainty.
Apricots-In addition to that factor the canners of apricots have
served notice on many of the growers that their fruit will not be
accepted for canning or even jam making, and recommending that
they use it for drying. These notices have been served on only those
of the growers whose trees produce unusually large quantities of
split fruit, owing to poor soil, age, and other factors. Many of
these trees are described as mere stumps and entirely unable to meet
competition, not only in other countries but in the Somerset East
district. As a matter of fact, production from the Wellington dis
trict averages only 45 to 50 pounds per tree, with an additional 10
pounds of culls. Only the low cost of production in that area has
enabled the growers there to compete successfully. Pickers are
paid only 75 cents per day, and colored cutters receive only 8 cents
5
per tray of 50 pounds of fresh fruit. There is every indication

that the South African dried-apricot industry has entered into a
period of notable development and that the quality of the dried fruit
produced from Somerset East is such as to force growers elsewhere
to improve their quality or abandon the cultivation of the trees:
The apricot plantings in the Golden Valley are also beginning to
demand consideration. The production is as yet small, but the
uality is regarded as superior to much of the Western Province
uit. The prices obtained in London for the best grades have been
slightly over 25 cents per pound.
The principal question confronting the growers in the Golden
Walley is that of labor. The natives available are untrained, care
less, and unintelligent. The season is at most of only 30 days'
duration, and it is doubtful that it would prove profitable to import
the labor from the Wellington district, 500 miles away, especially
as it would be necessary to compete with the Wellington growers,
whose season more or less coincides. In time the natives can prob
ably be trained to the work, but the problem is a difficult one.
Sultanas.-The sultana growers are also in a disturbed state of
mind because of the promulgation of the new regulations under the
pure food act of 1928. These regulations copy the provisions of
English law regarding sulphur content and propose to lay down a
sulphur content of 2,000 parts per million for dried fruit in gen
eral, but provide for sultanas at 750 parts. As it is not yet possible
to produce in South Africa a satisfactory sultana with this low con
tent, growers are carrying on a campaign to have this limit raised to
at least 1,000 parts per million. The outlook for the sultana growers
is not regarded as encouraging.
Raisins.—The raisin situation is viewed with a large amount of
uncertainty. The exports of dried grapes to New York which were
made during the 1926–27 season were not continued in 1928–29, and
the South African raisin does not appear to be sufficiently high in
quality to compete in the American market.
Unsatisfactory climatic conditions prevailed during the past two
years and resulted in a large portion of the usual crop being diverted
to wine making. To some extent this glutted the wineries. Wine
makers are now complaining of overproduction, and the problem of
working out a proper ratio between raisins and wine is engrossing
the attention of those interested in the wine industry. The raisin
grape is suited for only the cheaper grades of wine, and this neces
sarily makes it difficult to sell competitively in Europe after trans
port charges are paid.
Prunes.—The prune industry appears to be passing out of existence
in South Africa. Government experts are of the opinion that the
failure of prunes in South Africa is due to the selection of the wrong
varieties. The favorite prune for planting has been the Agen. This
tree has always deteriorated after a few years until the yield per
tree is negligible. One of the difficulties is undoubtedly the water
requirement of the prune, which renders it unsuitable for the land in
the fruit-growing d; of South Africa, which are either sandy
and with shallow soil or, in the case of the heavy loams of the so
called Karroo soils do not absorb water sufficiently well and often
have a hardpan which is impenetrable for the roots.
6
At present prune orchards are continuing to be uprooted and re

planted with apricot trees. There is practically no further prune
planting being made. The existing production comes entirely from
old trees and largely from orchards of less progressive farmers who
are still attempting to derive an income from unhealthy trees. The
problem has been investigated, and it is possible that other varieties
of prunes will prove more suitable to South African conditions, but
as yet no such variety has been discovered.
Peaches.—Increasing numbers of peaches are being dried in South
Africa, but the fact that most of the important peach districts are
in the Transvaal and the northern part of the Free State, where the
ripening season coincides with the rainy weather, renders drying in
those areas unsatisfactory. The success which has attended apricot
growing and the generally more lucrative prices for that fruit are
discouraging additional plantings. It seems doubtful if there will
be any material increase in the quantity of peach production.
Pears.-One of the largest pear crops in the history of South
Africa is anticipated for the season 1929–30. The problem of mar
keting the fresh fruit in the United Kingdom is becoming increas
ingly difficult, and as yet other markets have not been developed suffi
ciently to absorb the crop that is at present indicated. Efforts to
sell on the Continent and in Brazil are being made, but it seems
probable that a large portion of the crop must be dried or canned, as
has been the case during the past few years. The canners have indi
cated their willingness to purchase more pears than has been the
case in recent years, but it seems probable that there will be a con
siderable increase in the quantity of dried pears prepared.
Apples.—In the vicinity of Elgin, about 50 miles northeast of
Cape Town, an apple-growing center is rapidly developing. As yet
comparatively few of these apples are being exported, and the local
market appears to be able to absorb practically all the apples pro
duced at present. As the trees reach maturity the problem of mar
keting the entire crop and caring for the poor fruit gives promise
of becoming increasingly severe. This apple district lies in the
winter-rain belt, and drying is therefore difficult. Some of the fruit
is being evaporated, but attention is turning to the possibilities of
dehydration.
There is every indication that the volume of production of dried
apples from this source will be sufficient to supply practically all the
demands of Söuth Africa and will probably affect to some extent the
volume of imports. These, however, have never been important.
The cultivation of apples in South Africa is making steady prog
ress, and although soil and climatic conditions do not appear to be
entirely suited to the development of the best flavor, the production
is satisfactorily profitable and an increasing volume is being offered
for export.
The production of apples may be expected to increase and is al
ready reaching the capacity of the domestic market to absorb. It is
probable that the market existing in central and eastern Africa will
also be largely supplied from South African sources. . . . . -
('urrants.-The production of currants in South Africa is pri

marily for local consumption. The 1928–29 season was a good, one,
and there is every indication that the 1929–30 crop will be fully as
large.
7
EXPANSION OF FRUIT-GROWING AREA
The question of the expansion of the dried-fruit industry in South

Africa is rapidly resolving itself into the availability of additional
areas suitable for fruit cultivation. There has been a strong opinion
that the present production may be approximately doubled during
the next 10 years, but that beyond this expansion will be very diffi
cult. Recent investigations by Government experts, however, re
veal several important additional areas which had been omitted from
the somewhat pessimistic studies.
The Orange River Valley promises to be one of the important
fruit districts of South Africa. Large areas in the Free State and
the Transvaal, which would otherwise be highly suitable for decidu
ous fruit, suffer from hail to such an extent that fruit crops are
highly uncertain. A line drawn from the northwest to the southeast
passing through Kimberley more or less marks the limit of the hail
zone of the country. The country southwest of that line is com
paratively free from hail. That section is, on the whole, extremely
arid, but attention has now been attracted to the possibilities of the
Orange River Valley itself. From Douglas for a distance of 25
miles down the Orange River there is an area of approximately 1
mile on each side of the stream on which pears have been found to
flourish. In spite of difficulties of transport, one grower has made
a profit of £200 from 195 Bon Chretien trees. From Hopetown to
Prieska is another 12,000 acres of the river valley with similar pros
pects. From Harrisdale to Warrenton, on the Vaal River, a further
10-mile stretch of similar soil exists. Marydale, which marks the
line of the Langenberg Mountains across the Orange River is the
western limit of this deciduous-fruit district. As yet pears are the
only fruit that have proved really successful there... Peaches
have been tried, but apparently, because of climatic conditions, prob
ably summer heat, lose their vitality after about seven years.
Below the Langenberg Mountains begins an extensive citrus area
which extends nearly to the mouth of the river. This area is at pres
ent handicapped badly because of lack of transport, but appears to
have great potentialities. , Grapes appear to do well in that area,
and the possibilities of sultanas appear to be important.
MARKETING
EXPORTS
A table given previously in this report shows the exports for the
period January to September, 1929, as compared with the corres
ponding period of the previous year. It will be noted that this table
does not give the countries of destination. The figures were supplied
by the Department of Agriculture, and the only figures showing the
destination are those of the customs. The customs figures, however,
are not entitrely satisfactory, in that they fail to differentiate the
important varieties, such . apricots, peaches, pears, and apples,
ouping all in One category.
º ºprincipal markets for the South African dried fruit
is being found in central and eastern Africa. South Africa enjoys
a particular advantage in that region because of its geographical
proximity, which reduces freight rates as well as time in transit—an
8
important factor in the condition and the salability of the product

upon arrival.
South African apricots have also found an important market in
New Zealand, and 75 per cent of the exports of apricots go to that
market. The United Kingdom, because of the tariff preference
granted South African dried fruit, remains, however, the largest
single customer, taking over half the total.
Over 91 per cent of the raisins exported in 1928 went to the United
Kingdom and about 7 per cent to Canada. The small exports of
currants, figs, and prunes went almost entirely to British areas in
central and southern Africa and to the Portuguese and Belgian
possessions in Africa. More than 60 per cent of the “other dried
fruits’ are shipped to the United Kingdom, and about one-third to
New Zealand. No statistics available show what are the different
fruits included under that designation.
MARKETING PROBLEMS
The interest of the South African dried-fruit industry is at present

concentrated largely on three subjects. The first is the sulphur
content regulations regarding sultanas for sale in South Africa. It
seems possible that the pressure of the growers will be sufficiently
great to increase the permissible content from 750 parts per million
insisted upon in the English regulations. This is, however, at pres
ent a matter of discussion.
The second concern of the dried-fruit trade is the development of
additional markets. A shipment of 12,000 cases of dried apricots
has been made to Canada, and expectations are being entertained of
developing further this market. New Zealand, which has hitherto
been the principal outlet for South African agents, has somewhat
curtailed this demand, and the campaign carried on in New Zealand
against the alleged dumping of South African fruit and jam in
that country appears to have had a reaction on the dried-fruit trade.
Political feeling over the trade treaty between Germany and the
Union of South Africa has been admitted by large New Zealand
wholesale houses to be the reason for not placing orders for South
African apricots. Exporters of dried fruit, however, express confi
dence that they can sell all the dried apricots that even the Golden
Valley will be able to produce, as they insist that their quality com
pares favorably with the best in the world.
The suggested abolition of the English preference has aroused
much speculation and concern in the dried-fruit trade. The abolition
of this preference would hit particularly severely the sultana and
raisin growers. The other varieties of fruit could, it is believed,
either compete successfully without the preference or find other
markets, particularly in central and eastern Africa.
Rhodesian tariff situation.—The failure of the negotiations be
tween the Union of South Africa and the two Rhodesias to arrive at
an agreement for a continuation of the existing union tariff is caus
ing the fruit growers much concern, as it will mean that their dried
fruit, which has hitherto entered Rhodesia duty free, will now ap
parently be subject to a duty of 6 per cent, which will very greatly
impair its advantage over California and Australian products. The
present tariff union expired on December 31, 1929, so that it may be
9
Some time before the full effect of the new arrangements will become
apparent. The Rhodesias and other States in central and eastern
Africa have been important customers for South African dried
fruit during recent years, and there has been confidence that the de
velopment of these countries will open up increasingly important
j for South Africa, which is so favorably situated geographi
cally for their supply.
Anything tending to lose these markets must arouse the greatest
concern and must be followed by important consequences. There is
a remote possibility that a new arrangement may be effected, and it
is even proposed that the Governor General of the Union of South
Africa offer in lieu of the lost advantage in duty a bounty amount
ing to the equivalent. The matter is understood to be receiving the
consideration of the Government.
IMPORTS
The imports of dried fruit into South Africa have always been very
small, since the market there is supplied almost entirely by local
supplies. The following table shows the imports by varieties in
1927 and 1928:
IMPORTs OF DRIED FRUIT INTO THE UNION OF SOUTH AFRICA
[In pounds]
Kind 1927 1928 | Kind 1927 1928
1,089,211 | 1,073,358 Tamarinds----------------

- 533, 179 422,959
3,428, 327 3,610,413 || Other dried fruits----------! 173,764 149,372
195,293 162, 576 |−
20, 185 227,784 ' Total.---------------- | 5,488,775 5, 780,782
48,816 134, 320 i
Import statistics for 1929 are not available. However, during

the first six months of 1929 the imports into South Africa of all
dried fruit amounted to 2,942,845 pounds, valued at £38,818. In
the corresponding period of 1928 the imports were 2,511,593 pounds,
valued at £27,264. - - - - -
The bulk of the South African fruit imports is made up of dates,

which are not grown commercially in South Africa; figs, which have
also not proved a success; and prunes, the cultivation of which is
being gradually abandoned. Currants also are one of the principal
items among the imports of dried fruits; this is largely due to the
somewhat unsatisfactory character of the local article, which is a
distant variety. A few special packs of raisins and a small quantity
of miscellaneous other dried fruits make up the balance of the im:
ports. From the American point of view there has been no material
change during the past few months. -
There is every indication that the market for prunes, in South

Africa will improve, and more efficient salesmanship might be able
to sell more of the seedless and seeded raisins. At present, Califor
nia seeded raisins, repacked in England, are being sold on the South
African market.’ Steady progress is being made in the South
selling productionwith
Africancampaign of seeded
efficientraisins,
agentsbutshould
it would seem that a direct
be able to obtain at
10
least a share of the market now being supplied through the United
Kingdom. The bulk of the imports of raisins, however, is made up
of special packs, particularly those from Spain. A few California
dried peaches and even apricots are sold. The sales have not been
large and have been confined to the highest grade fancy fruit.
Australia and Greece share about equally in the currant imports,
with less than 0.3 per cent coming from other countries. As is the
case in the United States, most of the dates come from Iraq (Meso
potamia), other countries, accounting, for only about 6 per cent.
Nearly 90 per cent of the figs are of Turkish origin; Spain supplies
about 6 per cent and the remainder comes from various sources. Less
than 1 per cent of the prunes come from countries other than the
United States. In 1928 the United States led as a source of raisins,
furnishing about 51 per cent of the total, followed by 42 per cent from
Spain. Other dried fruits come from many countries; almost half
came from the United States in 1928.
LEGISLATION AFFECTING IMPORTS
Agitation is developing for an increase in the duty on dried fruit.

The Montagu Farmers’ Association and the Worcester Farmers’
Association have both taken action to urge the Government to in
crease duty on all imported dried fruit because of the increasing
volume of imports. The session of Parliament which terminated in
August took no action on this proposal, although the Minister of
Agriculture was approached by delegates of fruit growers.
Late in October the Congress of the South African Agricultural
Union unanimously adopted a similar resolution, alleging that the
United States had excluded South African fruit but was sending its
inferior surplus to South Africa, and demanding that increased pro
tection be accorded.
Inasmuch as the principal imports are made up of fruit which has
as yet not proved amenable to successful cultivation in South Africa,
it is perhaps somewhat doubtful if the Government will take this
action, but, on the other hand, any large increase in imports must
receive its attention.
The only other legislation affecting the South African market for
dried fruit has been the issuing of tentative regulations governing
food standards in South Africa. In the case of dried fruit, these are
essentially the English regulations regarding the sulphur content.
UNITED STATES PARTICIPATION
The following table shows the exports of dried fruit from the
United States to the Union of South Africa from 1924 to 1928:
|UNITED STATES EXPORTS OF DRIED FRUIT TO SOUTH AFRICA
[In pounds]
Kind 1924 1925 1926 1927 1928
Rasins----------------------------------------------- 2,964 4,334 1,425 21, 837 66, 123

Apples--- 2,429 2,225 10,056 5,975 4, 175
Apricots--- ------------ 264 149 178 350
Peaches--- - 671 300 , 1, 149 14, 576 25, 012
Prunes------------ --- --- --- 2, 536 4, 175 16,933 48,958 327, 538
Other dried fruits------------------------------------ 4,770 2, 318 10, 182 51, 717 11,726
11
The statistics for 1928 indicate two important outstanding fea

tures in the development of American trade. One of them was the
phenomenal increase in the quantity of prunes imported. This is
due, apparently, to two factors—the decline in the South African
production and the activity of the South African agent of the
California packers. It seems probable that this volume will be
maintained during 1929, and in all probability South Africa will be
compelled to import most of its prune requirements.
The increase in raisins indicated in the table is due largely to the
poor South African crop as the result of adverse climatic condi
tions. The fact that the United States was able to obtain a large
portion of this increase in imports is due primarily to the superior
º of the California product. Very few bulk raisins are
ing imported.
The prospect of increasing sales of American dried fruit in South
Africa depends somewhat upon the results of the South African
crop, but also to no small extent on the type of agent selected to
undertake the selling. Practically all of the American fruit is being
sold through the aid of manufacturers’ agents, whose function is to
canvass the trade and solicit business on a commission basis.
In some instances the choice of agents has been particularly
happy, and the increase of American sales in recent years may be
attributed largely to this fact. On the other hand, other agents of
American firms seeking to export dried fruit to South Africa are
far from desirable, and not only lack initiative but are in disfavor
with the merchants. Moreover, some of the agents appear to work
under the conviction that the article which they are selling is in
ferior to the local. Under the circumstances it is not surprising that
the sales secured by such agents are small and display no tendency to
increase. It is true that the sales in South Africa must necessarily
be confined to a few varieties, notably prunes and the very highest
quality of other varieties. It should continue to be possible, how
ever, to sell a few specially packed seeded and seedless raisins so long
as the existing duty on imported dried fruit is not increased.
O
L.S.
* * * **
R. P. LAMONT, Secretary
REGEIVED OF FOREIGN AND DOMESTIC COMMERCE

WILLIAM L. COOPER, Director
|| || MA: 15 1930
|| Q). S. U. LIBRARY
THE MARGARINE INDUSTRY

OF EUROPE
WF
\05
.2es
O.G.(7 UNITED STATES
GOVERNMENT PRINTING OFFICE

WASHINGTON : 1930
For sale by the Superintendent of Documents, Washington, D. C. - - - Price 10 cents

FOREWORD
The European margarine industry has become increasingly im

portant in recent years. The 1928 production of Germany, Great
Britain, Denmark, Norway, Sweden, and Netherlands (named in the
order of the size of production) was 2,266,095,000 pounds. France.
Switzerland, Czechoslovakia, and Belgium are also producers of
margarine, but the industry in those countries is not so great as in
the others.
Features of the industry since 1927 have been the formation of the
Margarine Union by the fusion of the two largest producers in
Europe, acquisitions by that union of many independent producers so
that the union now controls the production in most European coun
tries, and intensive merchandising campaigns to increase the popu
larity of margarine and expand the market for it.
Per capital consumption of margarine differs widely in the various
countries of Europe. It is largest in Denmark, but very high in
Norway and Netherlands also. Margarine does not have as great
a table use on the Continent as in the United States, but such use in
Great Britain is probably greater than our own. In general, mar
garine is used in Europe as a cooking fat and is beginning to replace
lard for that purpose in some countries.
This publication gives information on the margarine production,
trade, and consumption of various European countries, outlines the
commercial practices followed, and sets forth the legislation which
effects the industry. The Foodstuffs Division of the Bureau of
Foreign and Domestic Commerce has further information on this
subject and will be glad to answer specific inquiries from qualified
American firms.
WILLIAM L. CoopFR, Director,
FEBRUARY, 1930.
(II)
THE MARGARINE INDUSTRY OF EUROPE
By E. L. Thomas, Specialist in Meats, Fats, and Oils, in Collaboration with Field Representa
tives of the Bureau of Foreign and Domestic Commerce
The consumption of margarine is steadily on the gain in the United

States. From a volume of only 145,228,000 pounds (colored and
uncolored combined) for the whole country in 1913 production had
risen to 281,082,000 pounds in 1921, the first normal postwar year.
In 1928 our total production was 294,609,000 pounds and represented
the largest per capita consumption on record save for the war years,
1917 to 1920. This brief statement is supplied to enable the reader
to make his own comparisons between the United States and the
different European countries in regard to production, consump
tion, etc.
The trend of consumer preference toward margarine manufac
tured from vegetable fats, a mixture of animal and vegetable, and
hardened fish and whale oils is most apparent in each of the Euro
pean countries where a study of the industry was undertaken. In
general, statistics in the different countries make no separation of
the product as to its composition, but the increasing consumption of
vegetable fats is very conclusively shown by investigations conducted
and from the ingredient schedules, which, in certain instances, were
§§ to be recorded in much the same manner as in the United
tates.
The two largest margarine producers in Europe, the Jurgens and
the Van den Bergh interests, of Netherlands, merged in 1927, form
ing the Margarine Union. That combine has since acquired con
trol of numerous smaller and independent churners, with resultant
economies in manufacturing and distribution costs arising from cen
tralization of production and sales activities. This may be viewed
as conducive to an even greater expansion of margarine in the future,
despite the rapid growth of the industry in recent years.
The following table shows the production of margarine in Europe
in 1913, 1920, and from 1924 to 1928:
PRODUCTION OF MARG ARINE IN EUROPE
[In thousands of pounds]
Country 1913 1920 1924 1925 1926 1927 1928
(2) 1358, 400 (2) (2) (2) 1448,000

72,001 94,430 97, 554 94, 376 95,429 (2)
(2) 65,476 84,739 90, 711 93,854 || 3 111, 540
* 122,796 || 152,680 || 140,440 | 153,120 | 157,960 || 1 168,300
-- (2) (2) (2) * 15,432 18, 519 521,826
- 1496,035 (2) 1705,472 1771, 610 |1950, 001 | 1992,070 | 1992,070
194,937 || 4 218, 859 288,312 || 291,078 296,263 330,830 (2)
6 26, 400 50, 600 51, 700 59, 400 61,600 79, 89, 100
(2) (2) (2) (2) (2) (2) 2)
(?) (2) (?) (2) (2) (2) 2)
! Estimate, but closely approximate. * Preliminary. 5 Unofficial.

* Not available. * Statistics for 1921. 0 Statistics for 1914.
95315–30 (1)
2
Vegetable oils or fats comprise a much more numerous category

than those of animal origin. Hard vegetable oils, such as coconut,
palm and palm kernal, and soft oils, including peanut oil, soy bean,
cottonseed, sesame, sunflower, and the more inexpensive grades
of linseed oil, are used, together with comparatively small quantities
of several of the less-known vegetable oils. Animal fats employed
embrace premier jus (oleo stock), oleo oil and stearine, edible tallow,
and neutral lard, each playing its part in the ingredient schedules
of the European industry. Hydrogenated fish and whale oils are
also available, since refining and deoderizing processes remove all
odor and characteristic taste. The fish oils commonly utilized in
clude sardine, pilchard, herring, and cod oils.
INDUSTRY BY COUNTRIES
GREAT BRITAIN
The growing scarcity and rising cost of animal fats in Great

Britain led to the steady substitution of vegetable oils in margarine
made there during the years immediately preceding the war. During
the war period this transition was greatly accelerated by the acute
scarcity of animal fats and a consumer preference coincident with
the improvement in manufacturing processes. Prior to the war
animal-fat margarines led in popularity in the ratio of 7 to 3. These
proportions are now reversed, but the ascendancy of vegetable oils
as the principal fat component of margarine is threatened by the
introduction into the edible field of hardened whale and fish oils,
which are relatively cheaper in cost than vegetable fats. Especially
does this hold true with respect to the lower-priced brands of mar
garines, but inasmuch as margarine churners are not required by law,
as in the United States, to make returns to the Government as to
the nature and quantity of the various ingredients entering into
their product, such information can not be furnished.
Margarine is employed very largely as a butter substitute for
table use, but to an increasing extent is entering into cooking as
frying fat and as a shortening in baking. In Great Britain the in
dustry is dominated and controlled by the Margarine Union since
its recent merger with Lever Bros., which did not become fully
effective until January 1, 1930.
It might be stated, too, that in Europe margarine is beginning
to supplant lard to an increasing extent, especially in those countries
where it is the common household custom to use lard in place of
butter as a spread for bread.
The following table shows the production, imports, and consump
tion of margarine in Great Britain in 1913 and from 1924 to 1928.
Exports are negligible and have been disregarded.
3
PRODUCTION, IMPORTS, AND CONSUMPTION OF MARGARINE AND ARTIFICIAL BUTTER

IN GREAT BRITAIN
Thousands
ls of poun ds Per capita
|
-
Year —T-T—
Net con-
-
consump
tion,
Production Imports sumption pounds
| - - - - --------- -----
1 188, 160 170,049 | 358, 209 7.76

1358, 400 147,319 495, 719 11.7
1448,000 133.51% 571, 512 13. 28
1 Estimate.
GERMANY
The largest consumer of margarine in point of volume is Germany,

and the industry there is self-sustaining, as evidenced by the unim
portant exports and imports of this country. Margarine of foreign
origin is virtually excluded by a duty of 20 marks per 100 kilos
($0.0217 per pound). In the past about 60 per cent of the German
production was manufactured in the Rhine Provinces, chiefly the
cities of Cleve and Goch, with other plants at Emmerich, Duisburg,
Neuss, Krefeld, and Cologne in the same Province. It is probable
that such a large fraction of the industry was localized in this Prov
ince because of excellent transportation facilities afforded with the
port of Rotterdam for the import of raw materials and the ad
vantage of being near industrial centers. The close proximity to
dairy districts may likewise be reckoned as a factor influencing the
establishment of such a large number of plants.
As in the case of Great Britain and most of the other European
countries, the Margarine Union has acquired many of the factories
formerly independent. This has made the lot of the remaining
producers a rather unhappy one as they find it increasingly difficult
to compete with the combine, which has closed many of the smaller
plants it has taken over in order to concentrate production and cur
tail overhead, making possible, in this way, the introduction of
latest approved manufacturing methods. The ramifications of the
Margarine Union are many and embrace, in addition to churneries,
soap factories, oilseed crushing mills, and refineries, hydrogenation
plants and sources of raw material. In short, every step in the
chain of production from the raw material to the finished product
can be dictated by the union. Incidentally, it might be added that
oilseeds are admitted into Germany free of duty, while animal fats
are taxed (neutral lard and oleo oil $0.0065 per pound and premier
jus $0.0076 per pound). - - ---
A production slump occurred in 1923, owing to the prevailing bad

economic conditions. Heavier imports of butter in 1928, attributable
perhaps to an enjoyment of greater prosperity, may have prevented
an increased consumption of margarine. ...As elsewhere in Europe.
animal fats are giving way, to vegetable oils, ºwing tº the generally
lower cost of the latter. Hardened whale and fish oils have gained
tremendously in popularity as margarine raw materials in the past
4
three years, imports of these oils increasing 83 per cent in this short
period.
The following table shows the production, imports, exports, and
per capita consumption of margarine in Germany in 1913 and from
1922 t0 1928.
PRODUCTION, ExPORTS, IMPORTS, AND PER CAPITA CONSUMPTION OF MARGARINE IN

GERMANY
Thousands of pounds Per capita
Year Fººd | Exports | Imports

*
#4.
consump
production | * p p p
496,035 7. 93
992,070 ---- 15. 87
661,380 10.36
705,472 11.02
771, 610 12.35
959,001 15.43
992,070 15.87
992,070 15.87
DENMARK
The high per capita consumption of margarine in Denmark—the

highest, in fact, of the whole world—has an extremely simple ex
planation: The butter produced in Denmark is of such a uniformly
high quality that Danish producers are able to command a premium
market abroad and export practically the entire output. The
natural consequence has been the development of a margarine in
dustry to supply a substitute fat for the butter exported. The ac
companying table shows the degree to which margarine has sup
planted butter. Denmark supplies essentially its entire require
ments in margarine and neither exports nor imports to any extent.
In 1928 there were 130 margarine factories with 1,300 workers in
the country. This is a marked increase in recent years, since there
were but 50 manufacturing establishments in 1918. However, the
extension of the control of the Margarine Union, which has already
taken over a number of Danish plants, is expected to result in a
centralization of production and the consequent closing of some of
the factory units now in operation. As a matter of fact, even at
the present time 10 factories account for 85 per cent of the total
production of margarine.
Animal fats represented by 17 per cent of the raw materials en
tering into the manufacture of Danish margarine in 1927, but this
is, however, a substantial increase from 7% per cent in 1921 and may
be attributed almost entirely to the increasing consumption of hydro
genated whale and fish oils. In 1921 official records show no fats
of this description being utilized in the margarine industry, whereas
10.6 per cent of the 17 per cent total previously quoted were hard
ened whale and fish oils in 1927. Just as is the case elsewhere in
Europe, Danish manufacturers have discovered that the improve
ment in the technique of hydrogenation made such fats available
for edible purposes.
Of the vegetable oils entering into margarine, coconut oil has
always been the favorite, this oil alone accounting for 60 per cent
5
of all raw-material requirements in 1921. Since that year, though,

it has yielded somewhat to an increasing use of other vegetable oils.
There has been a decided fluctuation in the consumption of cotton
seed oil, due to large extent to price movements.
The following table shows the production and per capita con
sumption of margarine in Denmark from 1921 to 1928. The im
ports and exports are negligible and have been disregarded.
PRODUCTION AND PER CAPITA CONSUMPTION OF MARGARINE IN DENMARK
Thousands Pounds
|| Thousands |Pounds
Year of pounds consumed Year of pounds | consumed
produced | per capita | produced | per capita
|
i
122,796 35. 27 |
123,237 34.61
143,299 42. 55
152, 999 43.65 |
1 Estimate.
NETHERLANDS
The headquarters of the Margarine Union is in Netherlands,

where the margarine industry is largely under its domination. One
might expect, therefore, a reduction in plant operations. This does
not seem to have been the case, however, for though there were only
3 fewer plants in operation in 1926 than 1922 and only 16 factories
in all of Netherlands in the latter year, the number of employees
has increased in this 4-year period from 4,186 persons to 4,988.
The inhabitants of Netherlands eat very nearly as much mar
garine as butter, but the production is so much in excess of require
ments at home that considerably more is exported than is retained
for domestic consumption. About 70 per cent of this export sur
plus is sent to England and the balance shipped all over the world.
The penetration of other countries by the Margarine Union suggests
the possibility of a decline in exports because of a concentration of
manufacturing activities in those countries that may now be
"Fºg
roducers in Netherlands report a definite and well-established
preference for the vegetable-fat product. This is borne out by the
trend in supplies of raw materials. Whereas in 1923, 40 per cent
of all raw materials required by the industry was animal fat, this
shrank to 20 per cent in 1927. The more popular of the vegetable
oils are peanut, soybean, and coconut, with an increasing quantity of
linseed in later vears. The decline in the use of animal fats is the
more marked when it is stated that hardened whale and pilchard
oils, both classed as animal fats, have found an expanding outlet in
margarine manufacture. The increasing employment of vegetable
oil has brought about lower prices on margarine, which, in turn, has
tended to popularize further its consumption. However, announce
ment was made early in 1928 by the Margarine Union of a general
advance in wholesale prices, applicable only to standard brands.
This was expected to affect retail prices, for a time at any rate.
The following table shows the production, exports, and consump
tion of margarine in Netherlands in 1913, 1921, and from 1924 to
1928. The total of exports and consumption in each year exceeds
6
the figure given for production. It is believed that certain quanti

ties intended for consumption and listed under that heading were
diverted into export trade and listed there also.
PRODUCTION, ExPORTs, AND CoNSUMPTION OF MARGARINE IN THE NETHERLANDS
Thousands of pounds -
Per capita
Year --L-- coºp.
P* Exports coºp.
lon,
pounds
194, 937 151,646 |------------|------------

218, 859 152, 691 95, 316 12. 79
288, 312 208,057 113, 810 15.43
291,078 200,453 119, 666 16. 31
296,263 206,472 122, 316 16. 31
339,830 203, 806 136,024 17.86
(1) 195,755 ------------|------------
1 Not available.
NORWAY
The industry of margarine churning supports 40 Norwegian fac

tories at the present time. Its growth appears to have been arrested,
at least temporarily, for while production was greater in 1927 than
in preceding years factory output in each year was somewhat less
than during 1925, the high mark in production to date.
Although Norway imports more margarine than is exported, the
imports are intended largely for reexport, so Norway may be re
arded as self-contained in respect to supplying her needs in this
ood commodity. The consumption of margarine in Norway is
second only to Denmark from a per capita standpoint; but it is to be
doubted whether more margarine can be consumed in Norway except
as the population increases, for it is not thought the maximum annual
per capita consumption of butter and margarine combined can
greatly exceed 46.3 pounds, while present individual consumption, is
13 to is pounds of butter and 33 to 35 pounds of margarine annually,
The official per capita consumption of the latter article was reported
as 34.3 pounds in 1927.
Some very striking shifts in the ingredient requirements of the
Norwegian industry took place between 1916 and 1927. The greatest
change occurred in the case of animal fats; that is, oleo stock, oleo
oil, and neutral lard. From 31 per cent in 1916 the proportion of
this type of fats dropped to 10.1% per cent in 1927. º
this was
made up for by the increasing use of hydrogenated whale and
herring oils. In 1916 no fats of this description were employed,
whereas in 1927 the consumption was 9 per cent of the total of all
raw materials. Two grades have been found desirable by the Nor
wegians; one has a melting point of 42° F. and the other 52° F.
More and more are vegetable oils gaining favor. Their more ex
tensive utilization is attested by the fact that vegetable oils repre
sented 39 per cent of all ingredients in 1916 and 56.6 per cent in 1927:
Aside from the element of price, which favors, the vegetable-oil
group, such oils have high moisture-absorption qualities which makes
them preferable to animal fats. Milk, including cream and butter,
7
tleclined from 22 per cent of the total weight of all ingredients in

1916 to 19 per cent in 1927 despite a 25 per cent increase in margarine
production during the period. Milk has been replaced to the extent
of about 8% per cent in margarine formulae. Churners in Norway
are using at present nearly twice as much coconut and other similar
so-called hard vegetable oils as cottonseed and soybean oils. The
statement has already been made that, on the average, vegetable oils
cost the manufacturer less than animal fats. In Norway the high
price of animal fats have placed margarines made from them on a
retail price level approaching butter, which has been another factor
influencing their sale. The lower-priced vegetable-fat product has
not been hampered by such competition and therefore appeals to
popular demand.
The following table shows Norway's production, trade, and con
sumption of margarine in 1913, 1920, and 1924 to 1928:
PRODUCTION, TRADE, AND CONSUMPTION OF MARGARINE IN NORw AY
Thousands of pounds
- Per capita
- - i consump
Year Produc- Imports Estimated tion,
tion and reex- Exports | consump- pounds
ports tion -
|
60,226 70 1, 319 59, 113 24. 03
72, 001 . 2, 193 ) 150 74, 194 28. 22
04, 430 3,022 303 | 97, 347 35.49
37,554 | 1,500 319 98.940 35.71
94, 37(; 705 354 94,924 34. 17
95, 429 | 593 315 95, 907 34.30
| |
SWEDEN
Another country where the manufacture of margarine is essentially

a domestic industry is Sweden. In 1927 there were in operation 14
factories which had a high unit output in comparison with those in
many of the other European countries. The industry is growing
fast, several of the factories having been operating but a few years.
While per capita consumption data are Jacking for the past four
years, it is approximately correct to state that per capita consumption
has more than doubled in this short time and may be expected to in
crease still further. - - -
The Margarine Union now controls four of the Swedish margarine

factories, three of them numbered among the largest in Sweden. One
of them manufactures nothing but vegetable margarine. However,
although all of the remaining 13 plants manufacture both animal and
vegetable fat products, not more than 5 to 10 per cent is of animal
ºrigin at the present time. There are no mixed-type products pro
duced, except for a vegetable margarine into which 1S churned either
whale oil or butter. "Coconut oil, peanut oil, and highly refined
sºybean oil, listed in the order of their importance, are the vegetable
ºils employed to the greatest extent. , American refined cottonseed
ºil has not been able to compete with these oils, and consequently the
importation of it has been much reduced of late years.
8
The following table shows the Swedish margarine production,

trade, and consumption in 1913 and 1922 to 1928:
MARGARINE PRODUCTION, TRADE, AND CONSUMPTION OF SWEDEN
Thousands of pounds -
Per capita
Year -
Produc Net con-

coºp.
On,
tion Imports Fxports Sumption pounds
51,784 810 36 52, 558 9, 92

38,849 1,451 422 39, 878 1 6.69
51,397 2,797 48 54, 146 ! 9.97
65,476 3,993 19 69, 450 12. 27
84,739 3,873 417 88, 195 1 14.63
90, 711 3,019 470 93,260 1 15. 37
93,854 3,778 206 97,426 1 15.99.
111, 540 (2) 72 * 111,468 |------------
1 Estimate. * Not available. • Imports not included.
FRANCE
The lack of production statistics and consumption data makes it

impossible to do more than estimate the probable development of
margarine manufacturing in France. A conservative estimate
would place production at the present time around 66,000,000.
pounds. The vegetable-fat product and mixed vegetable and animal
types alone are manufactured, it is believed. The Margarine Union
is a dominating factor in the French industry and practically
controls it.
Exports of margarine in 1926 were 12,667,190 pounds; in 1927,
16,967,042 pounds; and in 1928, 15,262,445 pounds. The strictly
vegetable-fat product represented 60 per cent of all exports in 1926.
and 63 per cent in 1928. France imported in 1920, 7,250,000 pounds
of margarine, largely from Netherlands. Imports in 1920 were a
j greater than during 1913, but were over two and one
half times again as large in 1924 and still greater, or very nearly
25,000,000 pounds, in 1927. In 1928 the excess of imports over ex
ports was about 10,000,000 pounds.
Per capita consumption in 1913 was only 0.88 pound, and it had
increased to but 1.54 in 1924. France has the lowest consumption
per capita of all the European countries possessing a margarine in
dustry of any prominence.
Vegetable margarine to which cream has been added is finding
increasing favor with the consuming public because it resembles
natural butter more closely in taste. On the other hand, manufac
turers of pastry, pies, biscuits, etc., show a preference for the mixed
vegetable and animal fat article.
BELGIUM
Fourteen margarine plants are in operation in Belgium at the

Vº time, some of them being subsidiaries of large producers.
ery few manufacturers are independent of the Margarine Union;
which, as in many other European countries, has acquired most of
the larger producers.
9
Production statistics are not available, but consumption in 1914

was nearly 26,500,000 pounds. In 1920 it had almost doubled, but
showed no further gain until 1925, when it was reported to have
been 59,500,000 pounds. From 1925 consumption showed a steady
growth in 1928 reaching 89,000,000 pounds. Inasmuch as per
capita consumption in 1913 was 3.32 pounds and in 1924 it was 7.42
pounds with a total consumption of slightly under 52,000,000 pounds,
it may be assumed, with due allowance for growth in population dur
ing the past five years, that per capita consumption in 1928 was
around 11% pounds.
Much of this increased consumption may be attributed, no doubt,
to what amounts to a complete displacement of animal fats by
vegetable oils as the principal constituent raw materials employed
by the Belgian industry. This has brought about a general lowering
of the price of the commodity and is asserted to have resulted in
a superior article being offered the public. The vegetable oils most
commonly utilized are coconut, peanut, soybean, and sesame.
Belgium has a foreign trade in margarine, the balance of which
has been on the import side since 1923. Previous to that year the
annual trade was of larger proportions and aggregated 14,000,000
pounds in 1920, about one-third imports and two-thirds exports. In
1922 it was less, the total being 1,744,925 pounds, about 40 per cent
imports to 60 per cent exports. Since the pendulum of trade swung
the other way in 1923, Belgium's excess of imports over exports
was 256,000 pounds in that year and 855,000 the following year,
mainly from Netherlands. From 1925 to 1928 Belgium's foreign
trade in margarine was insignificant and chiefly confined to Nether
lands for imports, France furnishing the principal market for the
exports.
SPAIN
The margarine industry is not extensive in Spain, owing princi

pally to the widespread use of olive oil there. Very little margarine
is manufactured in Spain except from animal fat, chiefly for the
same reason. Production and consumption statistics are not avail
able, but it can be said that consumption is relatively unimportant.
OTHER COUNTRIES
Finland, Czechoslovakia, Austria, Italy, and Switzerland con

Sume margarine in small amounts and have a few manufacturing
establishments. In Finland, for instance, with 15 plants operating,
in 1928 the total production was but 9,900 metric tons and the im
ports practically nil. Czechoslovakia does not rate as a large im
Pºrter of margarine; the industry of the country, which is of modest
mensions, is largely in the hands of a concern affiliated with the
lln10n.
COMMERCIAL PRACTICES AND LEGISLATION

ARTIFICIAL COLORING
. Most of the margarine sold in Great Britain is colored. There

is no regulation of the introduction into the product of coloring
matter. In 1926 the Imperial Economic Committee on Marketing
10
issued a report the substance of which was that there appeared to be

no necessity for legislation of this nature pending completion of
research studies being undertaken to determine whether there was
any association between the natural color of butter and its vitamin
properties. If the result of this research should indicate such as
sociation existing the committee stated its intention of recommending
prohibition of the use of coloring materials in both butter and
margarine. There has been no further action taken to date.
Southern Germany prefers an uncolored product, while the central
and northern sections favor the colored article. There are no taxes
imposed upon the use of artificial coloring matter. Until 1925
the use of coloring matter was prohibited by law in Denmark. With
this regulation no longer in force, much of the margarine consumed
in Denmark is colored, for which no tax is assessed.
The artificial coloring matter most extensively used in Nether
lands is naphthol red, which has the approval of the authorities.
Although requiring a permit for the manufacture of margarine, the
Norwegian Government exacts no tax and all margarine sold in that
country is colored. This is likewise true of Sweden, but margarine
imported or intended for export must contain potato starch in such
quantities that the starch will be found in the finished product to at
least one-tenth of 1 per cent and not more than one-fifth of 1 per cent.
France forbids the introduction of artificial coloring substances
into margarine, and the regulation is stringently enforced. . As a
matter of fact, until comparatively recently a retailer of butter
might not expose margarine for sale in his shop, and vice versa.
The French food-inspection service announced recently that it would
issue in the early future a regulation requiring manufacturers of
margarine to incorporate in their formulas a small quantity of
starch to prevent unscrupulous retailers from mixing margarine
with butter for sale as butter.
Spain has legislation on its statute books against the use of ar
tificial coloring matter and the sale of margarine in circumstances
that might lead to the confusion of margarine with butter. The
manufacture of and sale of margarine on the same premises as butter
is contrary to law, although exceptions to this regulation are author
ized at times.
VITAMIN'S
Only one manufacturer in Great Britain at the present time is

known to be making a vitamin-content margarine, which he guar
antees to be equal to the best grade of butter in nutritive qualities.
Many of the smaller producers have put on the market margarines
containing ingredients used solely for adding vitamins. It is the
consensus of the industry in Great Britain, however, that the arti
ficial incorporation of vitamins has not increased sales to any extent,
and the largest churner in Europe has expressed the opinion that
the consumer does not desire such a product, but rather a natural
margarine.
Many German manufacturers are offering margarines said to con
tain adequate quantities of vitamins A and D. The source of these
vitamins is not definitely known. Egg yolk has the required vita
mins, and soya lechethin, claimed to be equal to egg yolk, is being
manufactured in Germany and is reputed to be much cheaper than
-
11
egg yolk. No appreciable increase in the sale of margarine has been

ascribed as yet to the vitamin innovation.
Some brands of Danish margarines contain vitamins introduced
into the product to supplement, the natural vitamin content, but
experimental work is still going forward in this field.
ome of the concerns in Netherlands affiliated with the Margarine
Union have attempted to create consumer demand for vitamin-con
tent margarines through advertising, but these trial efforts are said
to have been unsatisfactory. Laboratory research into the problem
is still being conducted.
One of the larger Norwegian churners has put on the market
a full line embracing all grades of vitamin-content margarines and
another is advertising its brands as containing vitamins. Nothing
has been disclosed of the process, which remains a well-guarded
secret. The firm first mentioned has a staff of expert chemists
engaged in research. In view of the prevailing opinion in Norway
that margarine consumption is probably at its peak, it is hardly
possible to increase sales, the object of the manufacturers being
apparently to endeavor to stimulate a demand for the improved
product.
Swedish producers are experimenting with processes to add
vitamins, and about 2 or 3 per cent of Swedish margarine now con
tains cod-liver oil to supply vitamins A and D. Churners have
found that a certain prejudice on the part of the consumer has
developed by reason of the difference in taste imparted by vitamins,
but this is said not to have affected its sale, because the class of trade
buying margarine of this type is convinced of its beneficial qualities.
Thus far adding vitamins to margarines has been confined to
vegetable-fat products, the sale of which has not expanded to any
extent up to the present because of its added yitamin value.
No vitamin-content margarine of domestic origin has made an ap
pearance on the market in France. French churners appear to have
some trepidation in venturing into that field and doubt the success
of a campaign to launch such margarine because of the much greater
popularity of butter in France. .. - - - - -
here has been little or no practical application of the principles

of adding vitamins in the manufacture of margarine in Belgium so
far as is known, although some, experimentation, has been under
taken. Manufacturers acknowledge a general lack of information
on the subject and state that considerable, research will be necessary
before satisfactory results can be achieved.
SALES METHODS
The two largest firms of churners in Great Britain maintain

chains of retaif stores in which they sell their products as well as
other food commodities, such as tea, coffee; spices, sugar...ſlairy
products, etc." The remainder of the production is distributed
through wholesalers. The customary container, is a tub from which
bulk sales are made in the quantity desired, by the customer. Cººl
board cartons of 1 or 2 pound size are also in wide vogue. , The
ºverage retail price varies from 6d. ($0.12) for the cheaper grades to
ls. 4d. ($0.32) per pound for margarines of superior quality. Re
cent statistics showing the composition of sales are not available,
12
but in 1922 approximately 62 per cent consisted of the cheaper grades

and in 1928 such grades accounted for 34 per cent. This is indicative
of a growing consumer preference for the better grades of margarine.
A study of lºft wholesale prices of margarine and butter
in Berlin in the past five years shows practically no change for
margarine, whereas butter quotations have varied somewhat. The
average during that period for butter has been nearly three times
the current price for margarine. Compared with 1913, Berlin mar
ket prices for margarines in 1928 were 18 per cent higher, while
butter advanced 52 per cent in price. The sales turnover of medium
and fancy grades throughout is satisfactory, but sales of cheaper
grades of margarines in some districts show gains, though this in
creased volume has not been profitable in every instance, one reason
being the practice of giving premiums which manufacturers have
found hard to abolish.
Recently in Netherlands the Margarine Union organized a new
subsidiary sales organization, the name of which is Margarine Sales
Central (Ltd.). The purpose of the company will be to engage in
the wholesale and retail merchandising of margarine, butter, and
other milk products, and edible fats and oils, for its own account
as well as for the account of third parties. An innovation will be
inaugurated in that the services of salesmen will be dispensed with in
each of the 11 Provinces of Netherlands. Merchants will be required
to send in their orders to the district sales offices of the company, one
of which is to be established in each Province. The outcome of this
new departure in merchandising will be watched with interest.
The union is reported to have spent the equivalent of $7,680,000 for
advertising in 1928. Wholesale prices were increased on March 14,
1928, from 46 florins ($18.40) to 54 florins ($21.60) per 100 kilos
(220.46 pounds), a price advance of $0.32 per kilo. Consistently low
prices, particularly on the lower grades, have built up a trade esti
mated at 800 to 900 tons of the lower-priced goods out of a total
production of 1,100 metric tons per week.
Several brands of margarine receive extensive advertising in
Norwegian newspapers, street cars, and other mediums. The trade
marks of all the more popular brands thus receive general recognition.
Seven of the most important margarine churners in Sweden com
bined in a cooperative selling agency in 1926 for the purpose of
stabilizing prices and restricting competition. Three members of
this group, known as the Selling Organization of the Margarine
Factories, are subsidiaries of the Margarine Union. Cooperation
does not extend to the purchase of raw materials or any phases of
manufacture, and no common sales method or plan is pursued. One
of the members has established branch warehouses and now has about
50, besides two branch sales offices and several agents. Another has
14 traveling salesmen and maintains three district sales offices.
Other manufacturers, some of them outside the selling organization,
sell chiefly through representatives on the road or wholesalers.
LEGISLATIVE MEASURES
In most of the European countries regulatory control, if existing,

is confined to regulations governing artificial coloring, which has
been treated in a preceding section of this bulletin. Certain coun
13
tries, however, prescribe requirements which must be met by manu

facturers. In Great Britain, for instance, the butter and margarine
act of 1907 defines the product and specifies that not more than 10
per cent of butterfat may be added in the process of manufacture.
Water content must not exceed 16 per cent. According to the public
health regulations of 1925, which became effective January 1, 1927,
the use§. except salt is prohibited, and it is further
provided by the same act that manufacturing establishments must
be registered with local authorities and shall be subject to inspection
by . of the Ministries of Health and Agriculture. Records of
all consignments must be kept.
The Government of Netherlands, under the margarine decree of
October 16, 1925, promulgated various regulations affecting the in
dustry. Under the provisions of that decree the fat content must not
be lower than 80 per cent nor moisture in excess of 16 per cent.
Preserving agents other than common salt and benzoic acid or ben
zoic acid salt may not be present and total quantity of benzoic acid
proper or contained in benzoic acid compounds may not exceed 0.2
per cent. Foreign matter detrimental to health may not be present,
and the product must not be rancid, moldy, or possessed of an ab
normal taste or odor. Five grams of the melted and filtered fat of
the margarine must contain butterfat to a minimum of 3 in terms of
the new “Kirschner’ figure if, in addition to the name “marga
rine,” the word “melange ’’ is used. . This last requirement is not
enforced, however, when it is shown that the product is destined for
export unless such product is stored at a place readily accessible to
the domestic public.
Each margarine factory in France is under the supervision of a
Government sanitary-inspection-service officer who receives his re
muneration from the management of the plant.
O
* I -->
| . . BUREAU OF FOREIGN AND DOMESTIC COMMERCE
TÉGENEL
APR -1 1930
• S. U. LIBRARY
THE MARKET FOR FOODSTUFFS
IN GUATEMALA
HF
Jos -
,255
o,678, UNITED STATES
| GOVERNMENT PRINTinC OFFICE

WASHinctON : 1930

FOREWORD
Foodstuffs of various kinds to the value of about $4,000,000 are

imported annually into Guatemala, and it is estimated that about 90
per cent of the total is supplied by the United States. Some of the
principal imports are flour, rice, wheat, canned fruit and vegetables,
crackers and biscuits, packing-house products, dairy products, and
dried fruit. There is only a small market for some of these products,
but the demand for others is increasing.
This is a part of a study being made by Trade Commissioner
Macgowan, who also reported on the market in Colombia. These
surveys should prove particularly helpful to those interested in the
expansion of their export trade in those countries, as there are many
helpful suggestions in these bulletins.
Should further information be desired pertaining to , foreign
market conditions, the Foodstuffs Division of the Bureau of Foreign
and Domestic Commerce will be glad to assist those interested.
FEBRUARY, 1930.
(II)
THE MARKET FOR FOODSTUFFS IN GUATEMALA
By Trade Commissioner H. P. Macgowan
GENERAL INFORMATION
Guatemala consumes each year approximately 50,000 metric tons

of imported foodstuffs, and these purchases cost the republic annu
ally about $4,000,000. When it is realized that 90 per cent of these
foodstuffs are bought in the United States, the importance of the
market to American exporters becomes evident.
The country is the most northerly of the Central American repub
lics, has an area of 42,364 square miles (approximately that of the
State of Virginia), and extends from the Pacific to the Atlantic,
with seaports on each ocean. It is bounded on the north by Mexico
and on the east by British Honduras and Honduras.
The republic, though situated in the Tropics, is divided by the
influence of altitude into three distinct climatic zones. The “hot
Country” is composed of plains and lowlands on both coasts, rising
from sea level to 2,000 feet. In this zone tropical products, notably
Sugarcane and bananas, flourish. The “temperate country’ from
2,000 to 6,000 feet in altitude, runs on both sides of the central
cordillera and comprises the important coffee and corn growing
regions. The “cold country’ is considered to extend from 6,000 to
12,000 feet elevation and includes most of the lands devoted to wheat
and potato cultivation.
Guatemala is essentially an agricultural country, and the economic
conditions there depend largely on two crops: Coffee, an export crop,
and corn, produced largely for local consumption. In recent years
the coffee crop has averaged about 100,000,000 pounds, and it ac
Counts for about 80 per cent of the country’s exports. A normal
corn crop is estimated at approximately 100,000 short tons, but in
poor years production is lighter and corn imports are proportion
ately heavier. The foreign credit man should watch these two crops
and the trend of prices which they command.
About 25,000 tons of sugar are produced in Guatemala, of which
About two-thirds are consumed locally. In 1928, 6,192,667 stems of
ananas were exported, practically all of which were grown for or
by a single company and shipped to the United States. Less im
Portant crops are beans, rice, wheat, vegetables, and tropical fruits.
POPULATION
According to the 1921 census, Guatemala had a population of

2004,900, of which about 73 per cent were classified as rural and 27
Percent as urban. Sixty-five per cent of the population are Indians,
98079–80 (1)
2
and 87 per cent, not including children under 7 years, are illiterate.
The population as of October, 1929, is estimated at 2,400,000.
The capital and commercial center of the country is Guatemala
City, a town of about 120,000 inhabitants at about 5,000 feet above
sea level. It is connected by rail with the Atlantic seaport, Puerto
Barrios, and with the Pacific seaports of San Jose and Champerico.
Quezaltenango, in the western part of the country, is the second
town of the country, with a population of about 30,000. It is con
nected with the transcontinental railway by a new electric railroad
which was expected to start operation in December, 1929.
Other towns of importance are Coban (27,000 population), Es
cuintla (22,000), Zacapa (18,000), Coatepeque (17,000), Retalhuleu
(15,000), and Mazatenango (12,000).
COMMUNICATIONS
Merchandise for the Guatemalan market enters to a large extent

through the ports of Puerto Barrios, San Jose, and Champerico.
American Pacific-coast exporters ship through Champerico when
merchandise is consigned to customers in western Guatemala and
through San Jose for the balance of the country, including the
capital. The idea is to reduce the rail haul to a minimum because
railway freight rates are high. Goods shipped from New York
and New Orleans enter through Puerto Barrios, on the Caribbean.
Champerico is 10 days from San Francisco, and Puerto Barrios is
3 days from New Orleans and 9 days from New York.
American manufactured articles are usually shipped from New
York or New Orleans. Foodstuffs and other staples move chiefly
via New Orleans and Pacific-coast ports. Products shipped into
the country from the west include flour, fresh fruits, dried and
canned fruits, fresh and canned vegetables, salmon, sardines, salt
fish, butter, confectionery, and lumber.
Small quantities of merchandise enter Guatemala, overland, by
rail from Mexico, notably petroleum products, and by highway from
Salvador and Honduras, chiefly tropical fruits and vegetables.
SUGGESTIONS FOR COVERING THE MARKET
The average foodstuffs salesman can profitably spend from two

weeks to a month in Guatemala. The first or introductory visit
should consist of a month at least, but subsequent calls may well
be limited to two weeks, or even slightly less, depending on how
satisfactorily distribution is progressing. Travelers arriving from
New York or New Orleans enter at Puerto Barrios and proceed
to Guatemala City by train, stopping over a day or two at Zacapa
when it seems desirable to work the market intensively. Ordinarily
the trip from the coast to Zacapa requires about five hours, and from
there the capital may be reached in five hours. It should be remem
bered that there are occasional interruptions in the train service
during the rainy season.
From 50 to 75 per cent of the salesman's time should be spent in
Guatemala City, but, this can include a 1-day trip to Antigua.
After finishing with the capital the traveler can head west, makin
1-day calls in Mazatenango, Quezaltenango, and Retalhuleu.
3
2-week visit could be divided as follows: Guatemala City, 6 days;

for secondary towns, 4 days; travel time, 4 days. Frequently slight
variations will be necessary in order to make the schedule conform
with steamer sailings. Travelers arriving from our west coast can
reverse the schedule suggested.
Most American lines marketed in Guatemala are sold through
sales representatives or commission agents located in Guatemala
City, and the first step of the new arrival, if it is his first trip, is
usually to appoint such a representative or agent. If the salesman
has no particular individual or firm in mind, suggestions may be
obtained from the American commercial attaché, the American con
sul general, or local banks. All prospects should, of course, be
checked as to reliability and credit standing through the banks. A
large New York bank plans to open a branch in Guatemala City in
1929 or early in 1930.
Having appointed an agent, he should be equipped with Spanish
printed matter, prices, and samples, and given a working knowledge
of the line, sales arguments, and policies. Credit, terms should be
thoroughly discussed and a definite policy established, as nearly as
possible in line with terms being quoted by competitors. The next
step is to work up a prospect list with the assistance of the agent and
the cooperation of the banks. Then the traveler should actually
canvass the trade, accompanied by the agent or his salesman. Actual
demonstration is the best way to instruct the agent in sales methods.
MARKET FOR SPECIFIC COMMODITIES
FRESH FRUIT
There is a good market for fresh fruit in Guatemala, and in 1928

imports reached a total of 363,268 kilos; the entire amount came
from the United States, and most of it from our Pacific-coast ports.
Apples in boxes are the heaviest sellers, and grapes a rather close
Second. There is some demand for pears, and a few peaches are
imported. Other fruits are purchased in small quantities.
It must be remembered that Guatemala produces an abundance of
tropical fruits, and even some temperate-climate fruit, such as
cooking apples and small pears, in the higher altitudes. Fresh fruit
; an import duty of 3 cents per kilo, gross weight.' Most of the
resh fruit comes from our Pacific coast ports, but some enters via
New Orleans. It seems probable that the market for fresh fruit will
#. gradually as purchasing power increases and as refrigeration
acilities improve. CANNED FRUIT
There is a small but growing demand for canned fruits in Guate

mala. The retail sales price of canned fruit is too high for the great
mass of consumers, including, the large Indian population—mostly
Fºral and engaged in agriculture—and the laboring classes of the
cities. In fact canned fruits are considered a luxury in the average
middle-class home, and their use is usually confined to special holiday
*A consu f 2 per cent of the declared value of the shipment is collected
§:"...ºf in
the the country of shipment. . This apºlº to all goods. . In
§ the iii-dººr cost of foodstuffs in Guatemala that fee must be taken into
eration,
4
celebrations or “fiestas.” Domestic tropical fruits are grown and

consumed fresh in large quantities.
If canned fruit could be sold in Guatemala at the price it sells for
in the United States, the demand for it would have developed more
rapidly, and to-day the market would be absorbing much larger
quantities. Ocean and rail freights, insurance, and other shipping
expenses have to be added to the American port price, and then an
additional 30 cents per gross kilo import duty. Besides, wholesalers
and retailers in Guatemala have heavier overhead expenses than
those in the United States, and they insist upon a wider margin of
profit. The result is that canned fruit costs the Guatemalan con
sumer from three to four times what it does in the United States.
Then it must be remembered that the per capita purchasing power
in Guatemala is comparatively low, and that the average daily wage
of a laborer averages considerably below $1.
The Guatemalan import statistics do not classify canned fruit sep
arately but lump it under the general head of canned goods, a head
which covers also vegetables, soups, fish, and meat products. How
ever, from the American export figures it is possible to obtain a
very fair idea of the extent of the market. Probably the total pur
chases of canned fruit in 1928 amounted to about 125,000 pounds,
of which approximately 90 per cent came from the United States.
Calculating on the basis of American figures again, the total imports
would have a value of about $20,000.
Peaches are the most popular canned fruit, while pears and cherries
follow in the order named. The following tabulation of American
exports to Guatemala in 1928 give a good picture of the comparative
demand for the different types of fruit, except that several kinds
are lumped under the general head “All other canned fruit.” In
this classification the most important item is muscat grapes, and
fruit salad accounts for a considerable and growing part of the total.
Temperate climate canned fruits are in heaviest demand, since very
small quantities are grown in the country. For tropical fruit the
consumers depend largely on the local fresh fruits—bananas, plan
tains, mangoes, oranges, limes, anonas, papayas, alligator pears,
melons, etc.
The following statement shows the exports of canned fruit from
the United States to Guatemala during 1928:
Pounds Pounds
Peaches--------------------- 29, 175 | Berries---------------------- 4, 406
Pears----------------------- 17,410 | Apples and sauce------------ 505
Cherries-------------------- 15, 647 || All other-------------------- 24, 542:
Apricots--------------------- 7,924 -
Pineapples------------------- 6, 835 Total----------------- 111,094

Prunes---------------------- 4, 650
The bulk of the canned fruit sold is packed in No. 2% cans, ex

cept in the case of berries, and these usually come in No. 2 cans.
No. 1 cans are in very light demand, but 8-ounce cans find a con
siderable and growing market. Standard export cases, bound with
iron tape or wire, are used, the number of cans to the case depending
on the size of the cans.
As already explained, American canned fruit encounters but slight
competition from foreign products. However, competition among
American brands is keen, and most of the products come from west
coast firms. -
5
There is one cannery in the country, near Patulul, formerly en

gaged in the canning of pineapples, but this is not now in opera
tion. The owner claims that pineapples satisfactory for canning
can be grown in the vicinity of the plant, and is now endeavoring to
interest foreign capital in the venture.
To summarize, the market for American canned fruit is small
but likely to increase gradually as wealth and standards of living
improve. Temporary declines in consumption during periods of
economic depression may be expected, and these declines will be
more noticeable in the case of canned fruit than in staples.
DRIED FRUIT
There is a good market in Guatemala for dried fruit, and in 1928

the country imported 116,000 kilos, according to the local statistics.
Dried fruit is considerably cheaper than canned fruit, and for that
reason it has been selling in constantly larger quantities. Duties
levied on gross weights make the difference particuarly noticeable.
Prunes and raisins are the most important items, followed by
peaches, apricots, and apples.
There seems an opportunity to develop the market for dried
fruits, but educational work is needed. The fruit usually comes
in 100-pound cases. Dried fruit pays an import duty of 15 cents
per kilo, gross weight. Practically all of the imports come from
California.
FRESH WEGETABLES
The Guatemalan import statistics for 1928 show that, in that

year imports of potatoes, amounted to 201,616 kilos, all from the
United States except 723 kilos from the Netherlands.
The American potatoes come from New Orleans and the west
coast ports, for the most part. They are usually shipped in 100
}. crates. A firm potato with not too much moisture is pre
erred, since that type is said to stand up better under tropical
conditions.
The bulk of the potatoes consumed in Guatemala are grown in the
country, and the imports merely represent the difference, between
production and total consumption. A large part of the imported
potatoes are intended for consumers in the tropical coastal areas,
where white potatoes do not flourish. Potatoes pay an import duty
of 3 cents per kilo, gross weight. . .
The same figures show that onion imports in 1928 amounted to
120485 kilos, all from the United States except 264 kilos from the
Netherlands. The American onions came from New Orleans and
Pacific-coast ports in 50 and 100 pound crates. The import duty
on onions is 5 cents per kilo, gross weight.
. Small white onions and spring onions (onion sprouts) are grown
in the cooler districts, but large red onions are imported.
iscellaneous fresh vegetables are imported to some extent and
almost all come from the United States, chiefly via New Orleans.
e chief market for them is the north-coast district, and a single
juit company imports a considerable part for distribution through
its commissaries, ‘Lettuce is an important item, and tomatoes are
*ported in fair quantities, especially when the local crop is poor.
6
CANNED VEGETABLES
The market for canned vegetables resembles in many ways the

market for canned fruits and is limited by similar factors. Com
petition from domestic fresh vegetables, low purchasing power, and
high cost to consumers are the principal handicaps. The import
duty on canned vegetables is again 30 cents per kilo, gross weight.
Import statistics are lacking, and once more dependence must be
placed on the American export figures. Total imports of canned
vegetables in 1928 probably amounted to some 160,000 pounds. Ex
ports of canned vegetables from the United States to Guatemala
during 1928 amounted to 137,606 pounds, so that we probably ob
tained between 85 and 95 per cent of the business. Foreign competi
tion is light, but competition among American canners is keen. As
in the case of fruit, most of the canned vegetables are sold by west
coast canners. Peas and mushrooms from France are among the
chief foreign competing products entering the country.
There is no local vegetable cannery, but large quantities of fresh
vegetables are grown in the country, including radishes, celery, arti
chokes, lettuce, eggplant, onions, spinach, cabbage, turnips, black
beans, red beans, cucumbers, yams, several types of squash, several
types of sweetpotatoes, cauliflower, Brussels sprouts, carrots, string
beans, peas, sweet corn, beets, and numerous tropical vegetables.
Temperate-climate vegetables which are not produced in the coun
try, or which are grown in small quantities only, are in best demand,
because tropical vegetables can be obtained fresh at reasonable prices
in local markets. Canned vegetables are considered a luxury, es
pecially asparagus, the most important item. Canned tomatoes and
peas are the other two best sellers. No. 2 cans are the fastest movers,
but a few No. 1 cans are sold, besides some picnic 10%-ounce
asparagus.
The following statement of United States exports of canned vege
tables to Guatemala during 1928 will show the comparative popu
larity of the various types of vegetables:
Pounds Pounds
Asparagus.------------------- 54, 234 || Tomatoes–––––––––––––––––––– 25, 960
Beans----------------------- 9, 200 || All other-------------------- 13. 577
Corn------------------------ 6, 890 -
Peas------------------------ 15, 905 Total------------------ 137, 606

Soups----------------------- 11, S35
MEAT AND MEAT PRODUCTS
LARD
Lard is the heavy seller among packing-house items, and all the
Guatemalan purchases are made in the United States, except for
occasional small experimental shipments from Europe.
The Guatemalan import statistics for 1928 record purchases of
1,046,688 kilos of lard valued at $268,251, all of which came from the
United States. Lard pays 5 cents per kilo, gross weight, import
duty.
Five American brands are well known, and the bulk of the lard
business is divided among them. The standard pack is the 37-pound
7
net can, packed two to the crate. Sometimes these cans come sepa
rately without any crating, and though this permits some saving on
freight and import duties, it is not to be encouraged since there is
considerable danger of loss from breakage. Small quantities of lard
are imported in the standard 5-pound pails for the better class of
grocery trade, but the increasing popularity of vegetable fat, which
comes in small tins, makes it unlikely that this pail business will show
any substantial growth. e HAMS
The Gautemalan trade figures do not list hams separately, but

it seems probable that total annual purchases are between 60,000 and
70,000 pounds, at least 90 per cent of which, or between 55,000 and
65,000 pounds, is imported from the United States.
Large hams are in best demand, and 16 to 18 pound weights
are most popular. These sell chiefly to hotels, restaurants, and
plantations. There is, however, some call from the household trade
for 12 to 14 pound, and smaller, hams. All hams should come in
tropical air-tight, waterproof wrapping. Hams are usually packed
six, but sometimes only four, to the case.
Hams from five well-known American packers are seen in the
stores, and occasionally one finds the products of two other smaller
packers. A few English hams are sold, and now and then a small
shipment of German (Westphalian) hams arrives in the market,
but they are intended, for the most part, for sale to the British and
German colonies.
Cooked ham in tins is sold in surprising quantities to the well
to-do families of the larger towns through the high-grade grocers.
American and Danish canned ham has been tried, but the French
product has given the greatest satisfaction and now practically con
trols the market. It is said to keep better than the Danish, Amer
ican, or other canned ham.
No figures are available on the imports of cooked ham, and it is
not included in the estimate of imports given in this section. The
consumption of cooked ham imported in cans is, of course, small in
comparison with the consumption of the raw product. Cooked ham
usually comes in 4, 6, 8, and 10 pound tins. Smaller cans of
sliced cooked ham are also sold.
BACON
Bacon has been gaining in popularity during recent years. No

figures on imports are available, but about 20,000 pounds are im
ported annually, approximately 90 per cent from the United States.
The bacon strips weigh between 6 and 10 pounds each, and are
usually packed in cases of 6 or 12 strips. Air-tight wrapping is
required.
CANNED MEATS
In 1928 the United States shipped to Gautemala 44,061 pounds of

canned meat, and these figures must serve as a guide to demand, since
Guatemalan' statistics do not separate canned meats from other
canned goods. It is difficult to estimate what share of the business
goes to American packers, but they probably get at least 75 per
8
cent. This would indicate a total consumption of about 60,000

pounds.
Our sales in 1928 were divided as follows: Canned beef, 11,209
pounds; canned pork, 14,069 pounds; canned sausage, 13,452 pounds;
and other canned meats, 5,331 pounds. The beef is largely corned
beef, and the pork deviled ham and cooked ham. The sausage is
mainly Vienna style.
No meat is canned in Guatemala, but the local supply of fresh
meat is large, and some smoked meat products are produced. Canned
meat is too expensive to sell in large quantities in competition with
the cheaper local fresh and smoked products.
Competition from Europe is largely in expensive specialties, such
as meat and game pastes, high-grade sausages of various types, and
in cooked ham, sliced and whole, particularly from France. In
fact, French packers are our most serious competitors in the whole
canned-meat line, but most of the competing products are those
which are imported even into the United States and sold as special
ties. Small shipments of canned meats come in from Germany,
Spain, Italy, and Denmark, but again the majority of these purchases
consist of specialties characteristic of their countries of origin.
Canned meats pay an import duty of 30 cents per kilo, gross
weight, and this increases their cost to the consumer materially.
The factors which limit the market for canned fruits and vegetables
apply equally to the market for canned meats.
MISCELLANEOUS MEAT PRODUCTS
There is a small demand in Guatemala for dry sausage, but con

siderable quantities are made locally, chiefly from pork, and some
better-grade German sausage is brought in.
There is also a small demand for pickled beef and pork, and this
comes almost entirely from the United States. It is consumed
largely by the negro and mestizo laborers employed on the banana
plantations along and near the Caribbean coast.
Hams, bacon, and sausage pay import duties of 30 cents per kilo,
gross weight, when packed in hermetically sealed package, and 20
cents per kilo, gross weight, when shipped in other packing.
Pickled meats and fresh meats pay 7 cents per kilo gross weight.
FISH
Very little fresh fish is imported, but considerable quantities of

salt cod are imported, largely from San Francisco. Canned salmon,
California sardines, and small sardines are important imports. The
salmon comes from the United States and Canada and the large
Sardines from California. The small sardines are brought in from
gº
tates.
(Atlantic coast), Norway, Spain, France, and the United
Salt fish-According to the Guatemalan statistics, there were
imported in 1928, ;4 kilos of Salt codfish (“bacalao") valued
at $17,000, of which 95 per cent was shipped from the United States.
Our own export figures indicate that our sales of salt fish consist
almost entirely of cod and that the sale of haddock, pollock, hake,
herring, and other salt fish is very small. Salt codfish pays an im:
port duty of 7 cents per kilo, gross weight, and other salt fish at
9
the rate of 10 cents per gross kilo. The “bacalao " usually comes
packed 40 pounds to the case.
Canned salmon.—The Guatemalan statistics do not list canned
salmon separately, but according to our own figures we shipped
28,113 pounds of canned salmon to Guatemala in 1928. However,
since some Canadian salmon is in evidence on merchants’ shelves,
we can not regard our figure as an indication of the total market.
Probably we supply 75 per cent, and on this basis total consumption
is estimated at between 35,000 and 40,000 pounds.
Chum is the biggest seller, and pink runs second. The demand for
red and sockeye is light because of their higher price. No. 1 tall
cans are the most popular, and they usually come packed 48 to the
case. Some No. 1 flat cans are seen, particularly in the more expen
sive grades. Most of the salmon is shipped from San Francisco,
but some comes from New Orleans. The Canadian fish is apparently
shipped from American west-coast ports, for lack of direct sailings.
*d
weight.
salmon pays an import duty of 30 cents per kilo, gross
*ines—sardines are not classified separately in the Guatemalan
trade figures, but there is undoubtedly a substantial demand for the
cheaper grades of large and small fish. Sardines pay 20 cents per
kilogross weight import duty.
The small cheap-sardine business is divided between Norway,
Spain, Portugal, and Canada (New Brunswick). Better grades of
small fish come from France, Spain, and the United States, but their
higher price limits their market. The French fine sardine is the
most popular.
The larger “California’’ sardines come almost entirely from the
United States and are largely shipped from San Francisco. This
kind of fish has been gaining in popularity during recent years be
cause of the low price. -
In the higher-priced small sardines the olive-oil pack is preferred,

though the tomato-sauce pack is also sold. In the cheaper grades
other vegetable oils and tomato-sauce packs are acceptable. In the
larger #: the tomato-sauce pack is almost always demanded.
Mustard packs and lemon-juice packs are rarely seen or ordered.
Small quantities of Norwegian smoked sardines are purchased, but
that type appears to be growing constantly less popular.
The smaller sardines come in 3,3%, and 4 ounce flat cans, with and
without keys. They are usually known as quarters and are packed
100 to the case. The high-grade French sardine, often comes in
slightly larger tins, a size not in conformity with United States
standards. They probably contain from 6 to 8 ounces of fish. The
“California’’ fish come in 15-ounce, oval, flat tins, packed 48 to the
CàSe.
In 1928 the United States shipped 311,964 pounds of Sardines to
Guatemala, but there is no way to determine the division of that
total by size of fish. In the opinion of local merchants, at least 80
{. cent of the total represents shipments of º California ” sardines.
wing to the lack of data on total purchases it is impossible to make
any accurate estimate of the total consumption of sardines in the
country, but with United States export figures as a guide it seems
likely that the figure would approximate 400,000 pounds. It must
remembered that this includes large and small type sardines.
10
DAIRY PRODUCTS
BUTTER
There is a very fair market for imported butter in Guatemala

but its consumption is largely confined to the towns. The small
well-to-do planter class supplies the few rural consumers. In the
higher lands where cattle are most successfully raised, and particu
larly in the neighborhood of Guatemala City and Quezaltenango,
locally produced butter enters into active competition with the
imported product.
In 1928, according to Guatemala statistics, 55,470 kilos of butter,
valued at $47,934, were imported. Of this quantity, 94 per cent
came from the United States. Practically the entire amount con
sists of canned butter, and most of the canned butter is shipped out
of San Francisco, though some comes through New York and New
Orleans.
American butter comes, for the most part, in 1/3 and 1 pound cans
but large consumers sometimes order the 50-pound can. The iocal
butter is generally sold in 1-pound prints.
Aside from the domestic butter, the Danish product is the most
serious competitor. In 1928, about 4 per cent of the butter imports
came from Denmark. , Small quantities also entered from Germany,
Belgium, and the Netherlands.
Butter pays an import duty of 20 cents per kilo, gross weight.
CANNED MILK
The Guatemalan statistics do not afford any satisfactory means of

estimating the volume of canned-milk imports, so our only gage is
the tabulation of American exports. In 1928 exports of condensed
milk to Guatemala amounted to 191,919 pounds and evaporated-milk
exports to 63,681 pounds. Total canned-milk exports were, there
fore, 255,600 pounds. Judging from the canned milk seen in local
stores and from reports of local merchants, between 80 and 90 per
cent of the canned milk imports must have come from the United
States, and with this estimate as a basis for calculation, it would
appear that total annual imports of canned milk amount to roughly
300,000 pounds.
The demand for canned milk is growing, but the market for both
the condensed and evaporated types is still small.
As in the case of butter, considerable competition from fresh milk
is encountered in the vicinity of the larger temperate climate zone
towns, where a domestic dairy industry is developing. The large
Indian population consumes but small quantities of dairy products
of any kind, and the imported articles are beyond their reach because
of price.
Aºian export figures for 1928 show that about three-quarters
of the canned milk shipped to Guatemala was condensed milk and
the rest was evaporated milk. No figures are available on the divi
sion of the European canned milk by types, but very probably con
densed milk predominated. Local merchants report that evaporated
sells best in the hot coastal regions, while condensed finds its chief
outlet in the more temperate interior. Much of the canned milk is
consumed by children. Small cans with from 6 to 10 ounces net
contents sell best.
11
The import duty on both condensed and evaporated milk is 15

cents per kilo, gross weight.
Powdered milk does not seem to have been marketed in Guate
mala to any considerable extent, and there seems to be an excellent
opportunity for introducing several good American brands. When
packed without the addition of any other substance, i. e., pure pow
ered milk, it pays the same duty as the evaporated and condensed
types. Small cans of 6 or 8 ounces net weight would seem advisable,
since larger tins increase the unit cost to consumer.
CHEESE
There is a fairly good market, for imported cheese in Guatemala,

but the domestic product supplies the majority of the consumers.
It is manufactured in considerable quantities, and even in the coast
districts there is a fairly large production. It is desirable to turn
milk into cheese, because it keeps much better than milk or butter,
and refrigeration facilities in the country are very limited.
The Guatemalan import figures show purchases in 1928 of 61,423
kilos of cheese and indicate that about 55 per cent came from the
United States. The Netherlands was our chief competitor, with
about 15 per cent. Smaller quantities came from Germany, Italy,
France, Belgium, and Switzerland.
Most of the American cheese comes in 5-pound bars, wrapped in
tin foil and packed in a wooden box. Six of these boxes are strapped
together with iron tape and shipped as a single bundle.
Dutch cheese comes in small red balls, running from 3 to 3%
pounds or more each. It is also shipped in 10-pound disks or slabs,
each piece in a tin box and each tin packed in a small, square,
wooden box. Swiss cheese comes in 150-pound cylindrical blocks,
each block packed in a tin and the tin in a small barrel. Some ex
pensive cheeses from all countries come in the small retail tins, flat
and round.
In American cheese it is the “American " type which sells best,
and the “Swiss’ type second. Probably “pimento * ranks third.
Cheese in air-tight packing pays an import,duty of 30 cents per
kilo, and in other packing, 15 cents per kilo. The price at which im
ported cheese sells and the large domestic production make any im
portant development in the market for the imported product un
likely, at least in the next few years.
GRAIN AND GRAIN PRODUCTS
WHEAT
There is a domestic milling industry, and both locally grown and

imported wheats are used by the millers. In 1928 the Guatemalan
import statistics record wheat imports amounting to 136,566 kilos,
and all but a few kilos are listed as having been imported from the
United States. The very small balance came from France.
FLOUR
Guatemala may be regarded as a good market for American wheat

flour, and considerable quantities are imported each year through
Pacific and Atlantic ports, the shipments coming from out west-coast
ports and New Orleans. A few shipments are made from New York.
12
In 1928 imports of wheat flour amounted to 18,411,465 kilos, ac

cording to local figures, and the entire amount came from the United
States. It seems probable that a small quantity of reshipped Ca
nadian flour is included in the total.
Formerly soft-wheat flour was preferred throughout the country,
but there has been a change in the demand during recent years. The
small bakers and the middle and lower class consumers still prefer a
soft-wheat flour, but the larger and more modern bakeries now ask
for a hard winter-wheat flour and occasionally for hard spring-wheat
flour. The better-class householders, particularly the foreigners,
seem to prefer a hard spring-wheat flour.
Several forms of packing are used, and mills should pay particular
attention to buyers’ instructions. In Guatemala City and vicinity
the more usual form has been three 50%-pound net drill bags to a
large new jute oversack, but recently the 101-pound net Osnaburg
bag with no oversack has been gaining in popularity, since there has
been a local surplus of jute oversacks, which are ordinarily used for
exporting coffee. These jute oversacks weigh about 2% pounds.
On the north coast 24-pound and 12-pound net cotton bags are
usually ordered. These are packed 6 and 12, respectively, in a large
thin jute sack. In the western part of the country, three 49-pound
cotton bags in a large jute oversack is the most usual pack.
CRACKERS AND BISCUITS
There is a very fair market in Guatemala for American crackers

and biscuits, and about 80 per cent of the imports of those com
modities come from the United States. The Guatemalan trade
figures show that in 1928, 144,646 kilos of crackers and biscuits,
valued at $52,305, were brought in. Receipts from the United States
were placed at 114,656 kilos.
Our most serious competitor was the United Kingdom, with ship
ments of 23,855 kilos, while Germany ranked third, with less than
3,000 kilos, and France fourth, with less than 2,000 kilos.
American export figures for 1928 show 70,000 pounds of unsweet
ened crackers and biscuits shipped to Guatemala during the year, as
well as 61,000 pounds of the sweetened varieties. In view of the
wide discrepancy between these figures and the Guatemalan statistics,
it seems advisable to use the latter only as a guide to our share in
the business, and not as an indication of the volume of the business.
Using the Guatemalan figures for determining our share in the
trade (80 per cent) and the American figures for determining the
volume of our trade (131,000 pounds), and by combining the two,
total imports of crackers and biscuits are estimated at 164,000 pounds.
The 70,000 pounds of unsweetened crackers from the United States
consisted principally of “sodas.” “Export sodas,” a plain soda
cracker with less taste than the standard Soda sold in the United
States, are the best sellers, and standard sodas are the second item
in importance. Saltines rank third, but sell in considerably smaller
quantities; a few graham crackers are sold, as well.
Sodas and saltines are usually shipped in 5, 10, or 15 pound air
tight tins. They also come in 1 and 3 pound tins, and 4-pound
cartons, but less frequently. The 5-pound tins are ordinarily shipped
12 to the case and the larger tins 6 to the case. Experimental ship
ments of 5-pound tins packed 6 to a large carton have been
and it is reported that this packing was satisfactory.
mº,
13
By far the largest seller in the sweetened class is the cream-filled

wafer. Those are sold, for the most part, in small tin-foil packets
with 4 or 5 crackers to the packet and 96 to 100 packets to the case.
Some are packed in small, flat, oblong tins for the better-class trade.
Small quantities of miscellaneous sweetened crackers are also sold,
usually in small retail packages such as are common in the United
States. One and two pound assortments of sweetened crackers are
also sold to some extent. Fruit cake in 1, 2, and 5 pound tins is
being sold in growing quantities by one American manufacturer.
The 2-pound tin was the best seller, but now a new 1-pound tin is
said to be gaining in popularity.
The only competition of importance is from the expensive, high
§. rich British biscuits, such as are popular all through Latin
erica. Assortments are popular, and 1 and 2 pound tin-box
packages are in use; the 1-pound tin is the more popular. French
and German competing products are similar to the British,
Soda crackers pay an import duty of 10 cents per kilo, gross
weight, and other crackers and biscuits pay 20 cents per kilo, gross
weight. Cakes, puddings, and pastry pay 40 cents per kilo, gross
weight.
CORN
Corn is a very important item of consumption in Guatemala, but

the country produces about 100,000 short tons. It is imported, in
quantities depending on the success of the domestic harvest. In
1928 imports amounted to about 30,000, short tons, and approxi
mately 85 per cent came from the United States. Most of the
balance came from Nicaragua.
Ordinarily the local crop is consumed first, then the exportable
surplus of Nicaragua is purchased, and then American corn is bought
to bring supply up to consumption. -
About 60 per cent of the American corn comes via New Orleans
and about 25 per cent via our Pacific-coast ports. Corn usually
comes in 150-pound (net) jute bags. . . - - -
Corn oil.—Corn oil is being used in growing quantities and is

brought in largely from the É. States. It usually comes ten
1-gallon cans to the case.
RICE
Guatemala consumes fairly large quantities of imported rice

esides the domestic production. The rice comes chiefly from
Hamburg and San Francisco, but it is almost entirely oriental rice.
Siam Garden No. 1 is the most popular type. Small quantities of
Texas and Louisiana rice are brought in through New Orleans, but
usually American rice is too high priced for the market.
The Guatemaian trade statistics for 1928 show imports of 452,931
kilos of rice. The countries of origin as listed in the statistical
table mean very little, since in most cases they represent reshipment
Points, and not production areas. Most of the rice comes in 97-pound
met double jute bags 100 pounds gross.
MISCELLANEOUS FOODSTUFFS
CONFECTIONERY
There i nd in Guatemala for imported confectionery,

ſº i.e."junted to
-
and in 196,914 kilos, of which about 50

14
per cent came from the United States. England was our chief
competitor, and Germany ranked third as a supplier. Smaller
quantities came in from nearly all European countries.
Not many consumers can afford the expensive imported candies,
and the majority have to content themselves with the cheaper local
products. Boxed chocolates from several American firms are to be
seen in the stores, and some bar goods are imported from the United
States. Among the loose candies, gumdrops and sugar-coated al
monds appear to be the best sellers. Not much American hard candy
is sold. -
England supplies chocolates in tins and solid chocolates in bars.

Milk chocolate comes in from Switzerland and England. Toffee
comes from England. Loose chocolates and hard candy come from
Italy, Germany, and France.
Confectionery in fancy boxes or packages is assessed an import
duty of 80 cents per kilo, gross weight, and in other wrapping half
that rate. These rates quite naturally make imported confectionery
very expensive, especially packaged chocolates.
JAMS, JELLIES, AND MARMALADES
In 1928 the United States shipped 8,063 pounds of jams, jellies,

and marmalades to Guatemala. The most serious competition comes
from the United Kingdom, and we do not get more than about one
half the business. Some high-grade French preserves are found in
the stores.
- PICKLES AND SAUCES
There is a small demand in Guatemala for pickles and sauces.

Most of the pickles are imported from the United States, but the
bulk of the sauces come from England. Worcestershire sauce is the
most popular. Olives come largely from Italy, Spain, and France.
All of the commodities mentioned are too expensive to have any
considerable market, but the demand for them may be expected to
increase gradually.
EDIBLE VEGETABLE FATS AND OILS
There is a growing demand in Guatemala for vegetable shortening,

and one brand in particular has found favor in the eyes of the pub
lic. It sells best in the larger cities, particularly in the capital. It
comes usually in 1%, 3, 6, and 50 pound tins. A little of the Dutch
roduct is found in some of the shops, but it does not appear to
#. met with much success.
BAKING POWDER
-.
In 1928, according to Guatemalan figures, 18,436 kilos of baking .

powder, valued at $6,996, were imported. The entire amount came
from the United States, and a large part of the purchases were from
a single American manufacturer.
The 8-ounce can is the best seller, but the 4-ounce can also moves
well. Third in favor is the 1-pound can. The 5 and 10 pound cans
sell chiefly to bakeries. Other American brands could doubtless be
introduced, with the application of sales effort and advertising, and
at least two other firms are now attempting to gain a foothold in the
market. Baking powder pays an import duty of 30 cents per kilo,
gross weight.
O
iº 5’
e- R. P. LAMONT, Secretary
“, I
ar •; BUREAU OF FOREIGN AND DOMESTIC COMMERCE
REGETWE D William L. COOPER, Director
| APR -1 1930
9. S. U. LIBRARY
MARKETS FOR FUEL-OIL BURNERS

IN THE EASTERN HEMISPHERE
F
\05
:S(9)
WASHINGTON : 1930
** sale by the Superintendent of Documents, Washington, D. C. - - - Price 10 cents
*
FOREWORD
It has been only during recent years that there has developed a
foreign demand for American fuel-oil burners and parts, but the
importance of that market is demonstrated by the fact that exports
from the United States under this heading were valued at $1,449,330
during 1929 as compared with $983,842 in 1928, an increase of ap
proximately 48 per cent. The largest gain has been in exports to
the Eastern Hemisphere, which rose from a value of $310,075 in
1928 to $739,122 during 1929.
The exports to almost all of the European countries showed sub
stantial increases in 1929, the total to Europe having been $504,933
in 1929 as compared with $205,669 in 1928. The largest gain in sales
to any one country was to the United Kingdom, which in 1929 pur
chased oil burners and parts valued at $245,837 as compared with
$111,356 worth in 1928. Increased sales were recorded in Sweden,
France, Belgium, and Soviet Russia in Europe. As the European
countries increase in prosperity there should be a growing demand
for central heating plants.
In the Far East, sales to Japan showed a very decided gain, rising
from $22,728 worth of American oil burners and parts in 1928 to
$145,813 worth in 1929. Australia and New Zealand have proven
to be fair markets for fuel-oil burners, but exports of such equip
ment to those countries in 1929 showed no material gain. The
climate there is mild and the demand is only for oil burners to be
used in apartment houses, hotels, and stores, and the total number
of such buildings in use or being built is not great.
This bulletin was compiled in the Iron and Steel Division of the
Bureau of Foreign and Domestic Commerce by Assistant Trade
Commissioner W. Duval Brown from reports submitted by oversea
representatives of the Department of Commerce. The iron and steel
division keeps in touch with developments in foreign markets for
oil burners and oil-burning equipment, and those interested are
invited to apply to that division for further information.
MARCH, 1930.
(II)
MARKETS FOR FUEL-OIL BURNERS IN THE EASTERN
HEMISPHERE
ORDER OF ARRANGEMENT
Europe: Europe—Continued.
Austria. Sweden.
Belgium. Switzerland.
Denmark. Turkey.
Finland. Africa :
Germany. Egypt.
Great Britain. Union of South Africa.
i.e.
taly:
Far East :
Austral ia.
Latvia. China
Netherlands. India.
Norway. Japan.
º
Spain.
New Zealand.
Philippine Islands.
GENERAL
. The purpose of this bulletin is to consider the market possibilities

in the Eastern Hemisphere for fuel-oil burners to be used in con
nection with central heating plants and also for industrial purposes,
the former type being stressed rather than the latter. During 1928
the Eastern Hemisphere accounted for 31 per cent of all exports of
oil burners and parts from the United States, while in 1929 the
percentage of such exports taken by that area rose to 51, Europe
*counting for 35 per cent and the Far East for 16 per cent. The
United Kingdom is our best customer in the area discussed, account
oil burners and parts from
the United intº all export
17 per cent of "º
ing for someStates n. s ofdurin g that year almost as
many American oil burners as the rest of Europe combined.
During 1929 United States exports of oil burners to the Eastern
ºmisphere were valued at $739,122 as compared with $310,075 in
8, an increase of more than 100 per cent. Exports to Europe in
(1)
2
creased from $205,669 to $504,933, and to the Far East from $103,678
to $225,975. The largest single gain in sales of American oil burners
and parts was to the United Kingdom which rose from $111,356
during 1928 to $245,837 in 1929. Sales to Japan showed a very great
increase, rising from $22,728 in 1928 to $145,813 during 1929.
Europe, more than any other area, offers a great potential market
for fuel-oil burners, since there are encountered populous countries
with standards of living similar to those in the United States, and
as European prosperity increases there should be a growing demand
for central heating and other comforts of life. Selling fuel-oil
burners there is now a problem of getting the people of Europe
to appreciate the advantages of such equipment for domestic and
industrial purposes. The more important countries of Europe are
highly industrialized and once there is any great demand for fuel
oil burners there the American manufacturer of oil-burning equip
ment possibly will have to meet and overcome keen competition from
the domestic product. -
In the Far East the greater demand is for industrial-oil burners.

There is little prospect that the many millions of people in China
and Japan will ever, be able to use central heating generally, al
though the climate of those countries is such that that kind of heat
is highly desirable. In India and southern Asia, owing to the
climate, there is no demand for or need of artificial heating. Austra
lia and New Zealand take a few domestic fuel-oil burners and also
some commercial burners, but the smallness of the population there
limits the market possibilities.
Our export trade in fuel-oil burners to Java, Siam, Persia, Soviet
Russia in Asia, Liberia, colonial possessions in Africa, and other
countries of the Eastern Hemisphere not considered in this bulletin
is of relatively little importance. No detailed information is avail
able concerning the market in Soviet Russia in Europe, but exports
of fuel-oil burners and parts from the United States to that country
during 1929 were valued at more than $28,000 as compared with
$2,600 in 1928, which figures would seem to indicate a growing
market for such equipment and one that may develop considerable
importance.
ADVERTISING
Since oil burners to be used in connection with central heatin

plants are a new idea in most parts of the world, some publicity o
an educational nature will be necessary to start a demand. It is
not believed that an extensive initial advertising campaign is justi
fiable in any of the countries of the Eastern Hemisphere, with the
exception of the United Kingdom, as the potential market is as yet
undetermined. The principal purchasers of such equipment at the
present time are owners and builders of apartment houses, hotels,
stores, and buildings of a similar character. These, in any country,
are a relatively small group that can best be reached by direct
methods, such as circular letters and visits of salesmen who are
qualified to give the desired technical information concerning the
advantages of fuel-oil burners.
3
Advertising methods, however, have to be adapted to the require

ments and potentialities of each market; it is impossible to make
any general statement as to what is the best way to advertise. In
formation with respect to the mediums and methods available to
the prospective American advertiser in foreign markets can be
supplied by the Specialties Division of the Bureau of Foreign and
Domestic Commerce, and there are a number of American advertis
ing agencies competent to handle and advise regarding advertising
in foreign countries. The American manufacturer should always
consult the foreign representative and utilize his knowledge of
local conditions on all questions of advertising, even though the
advertising campaign may be handled entirely from the United
States.
In almost every instance the person of firms taking on the agency
for fuel-oil burners will desire the manufacturer to make a certain
allowance for advertising. In some instances a lump sum is de
manded to be expended during the first year, while the apparatus is
being introduced, and after that a percentage allowance; in other
cases, agents are willing to work on a percentage of sales allowance
from the start. Possibly this latter arrangement is the most satis
factory from the American manufacturer's point of view. However,
the advertising allowance is a matter that has to be determined in
each case individually, it being controlled by the general policy of
the manufacturer, the methods employed by his agent, and by the
possibilities of the market.
. If an allowance for advertising is made, the agent would expect,
in addition, to be supplied with cliches, posters, and other display
material. It would also be advisable to supply full cost data re
garding the operation of fuel-oil burners in such a way that the cost
of heating by that method could be compared with that of other
fuels. Complete information regarding the kind of refractory brick
and other installation materials that have been found to be most
efficient would also be of great value to the agent.
Economy of operation would always have to be the chief selling
Point in the Eastern Hemisphere, as only in Australia and New
Zealand, where domestic help is scarce and expensive, is the question
of labor saving an important factor in sales.
Since to demonstrate clearly the advantages of fuel-oil burners a
certain technical knowledge is necessary, it is important to select an
agent capable of acquiring and imparting this knowledge, for with
out it intelligent sales promotion is almost impossible.
The demand for fuel-oil burners for industrial purposes arises
frºm only a few industrials. Where there are trade papers pub
lished for the benefit of any one industry in which fuel-oil burners
ºuld be used, such publications would offer a medium for advertis
ing that equipment. In most instances, however, direct solicitation
ºn the part of technically trained salesmen is the only practical way
in which to sell oil burners for industrial purposes. -
The following table shows our exports of oil burners and parts
to the principal countries of the Eastern Hemisphere in 1929, as
4
compared with 1928, the first year in which a separate statistical

classification was given:
ExPORTS OF OIL BURNERS AND PARTS FROM THE UNITED STATES To THE EASTERN
HEMISPHERE
| |
Country 1928 1929 | Country 1928 1929
--
|
Europe: Africa:
United Kingdom---------- $111,356 | $245,837 Union of South Africa.----- $728 $392
Austria---- |- Egypt
Belgium--- |
Czechoslovakia
Denmark----
Finland---
France----
Germany-- 8 iſ
Greece--- 91 ||
Hungary
Irish Free State
Italy-------- y British Malay--
Latvia------------------------------ 435 Java and Madura 451 5,584
Netherlands- 28, 353 61,434 Philippines- 3, 181 9,780
Norway--- 1,568 , 246 Australia- 28,468 24,477
| 16,460 16,654
---------- , 398
z --> iſ ------------------------- 103,678 225,975

53 ------------- 310,075 | 739, 122
|
205, 669
EUROPE
AUSTRIA
By John A. Embry, Assistant Commercial Attaché, Vienna
Since the winters of Austria are cold and damp, some sort of
artificial heating of homes is desirable from about October 15 to
April 15. Owing to the relatively low purchasing power of the
people and the high cost of all fuel, it has become the custom to
economize on heat in every way possible. Even in the better homes
frequently only one room will be heated, and that only during very
cold weather. The people of Vienna spend most of their free wak
ing hours outside the homes in cafés and restaurants, which in win
ter provide warmth in addition to entertainment of a kind preferred
by the residents of that city.
The most usual method of heating homes, apartments, and hotels
in Austria is by means of tile stoves built to burn either coal or
coke. Practically all houses are built with basements, where heat
ing plants may be installed, but only a very few residences have
central heating. In recent years there has been an appreciable
increase in the number of public buildings, cafés, restaurants, and
hotels which have ºld central heat, but such heat in apart
ment houses is extremely rare. The only new apartment houses
under construction in Vienna are those being built by the munici
pality and these, since they are for the benefit of people of moderate
means and will be rented at low rates, do not have central heating.
Owing to the high cost of fuel, the Austrian market for oil
burners of any kind is a very small one. A fairly good type of
oil-burning heating plant is manufactured in the country and has
supplied the entire demand up to the present time. This domestic
plant is so constructed as to be easily and quickly converted to a
‘ºke burner, which makes special appeal, as coke is a cheaper fuel
than oil. Where central heating plants have been installed they
are either hot water or hot air, the former being more popular than
the latter. No automatically controlled oil burners have been sold
in the Austrian market as they are considered as being too expensive
and not necessary as some one to attend to the furnace can be
secured at a low wage.
Nº special taxes, licenses, or inspection fees have to be paid upon
the installation of central heating plants, but the municipality of
Vienna *. that such installations be made by an approved
§gineer. Refractory fire brick, steel storage tanks, iron pipe, and
the necessary electrical equipment for installing oil burners can be
*cured in Austria; the local light and power companies selling
(5)
6
all domestic electrical appliances except refrigerators. The elec

tricity available in Vienna is both direct and alternating current,
the former being 110 and 220 volts for houses and 440 volts for
power, and the latter 220 and 380 volts, 3 phase, and 50 cycles.
Coal is readily obtainable and sells at the following prices per
metric ton: Anthracite, about $22; bituminous coal and briquettes,
$11; coke, $12; and lignite, $7. Coke and coal are the most popular
fuels for central heating plants and stoves. It is estimated that
coke is about 35 per cent cheaper than oil as a fuel, and most of
the central heating plants that have been installed use the former.
Austria imports some 25,000 metric tons of fuel oil each year,
chiefly from Rumania and Poland. This is a residuum from the
distillation of gasoline and is known locally as “gasoel,” having the
following characteristics: (1) Baumé gravity of 31.1° to 35° and
flash point, closed cup, 158° F.; (2) Baumé gravity of 34.9° to
36.0° and flash point, closed cup, 167° F.; and (3) Baumé gravity
of 32.8° and flash point, closed cup, 172°F. Fuel oil sells on the
Austrian market for about $21 a metric ton.
Manufactured gas is available in Vienna for about $0.90 per 1,000
cubic feet. Because of its relatively high cost, gas is not used to
any great extent for heating purposes, its use being confined almost
exclusively to cooking.
BELGIUM
By Leigh W. Hunt, Assistant Commercial Attaché, Brussels
Some sort of artificial heat is considered as necessary in Belgium.

from about October 15 to April 15, the winter climate being very
damp and the cold penetrating. Most homes are heated by stoves
burning coal or coke and central heating is not by any means in gen
eral use, although since the war there has been a considerable increase
in the number of such installations. Most of the new apartment
houses, residences, and hotels have central heating, and many of the
older residences are now putting in furnaces. In all, it is estimated
that 40 per cent of the new dwellings have central heat and that 10
per cent of all homes, old and new, have central heating plants, which
figure will probably increase, as all houses are built with basements
in which it is possible to install furnaces. Hot-water systems are
used entirely in homes and generally in office buildings, stores, and
hotels, though among the latter systems are occasionally found.
However, even though the idea of employing central heating is
rapidly gaining ground in Belgium, there have not been many of the
plants equipped with oil burners. Since domestic service is cheap,
there is not the same inducement to put in an automatic oil-burnin
furnace that there is in the United States, especially since fuel oil
is more expensive than coal or coke. Some of the apartment houses
are built with separate heating systems for each apartment, giving
individual control of heat to each tenant, and it might be among this
class of people that there could be developed some market for auto
matic oiſ burners. Oil-burning equipment for industrial use is quite
common where high temperatures are desired, but oil burners for
domestic purposes have been considered too expensive.
7
Considerable effort has been made on the part of the representa

tives in Belgium of American manufacturers of oil-burning equip
ment to increase sales, and these efforts have evidently not been in
vain, as demonstrated by the fact that exports of oil-burning equip
ment and parts from the United States to Belgium increased from a
value of $10,863 in 1928 to $24,004 during 1929.
In the field for industrial oil burners the imported article supplies
about 60 per cent of the demand, while the oil-burning equipment
for central heating plants is practically all imported.
There are no local taxes or fees which have to be paid on the
installation of oil burners or other equipment for central heating.
The only restriction placed upon central heating plants is a limita
tion of allowable steam pressure.
Refractory fire brick, steel storage tanks, iron pipe, and the neces
sary electrical equipment for the installation of oil burners can be
obtained locally. The electric current in Belgium is alternating at
110 and 220 volts, of 50 cycles and 3 phase. Direct current at the
same voltage is also available.
Coal, mined in Belgium, is readily available. Domestic anthracite
sells at about $6 a ton, bituminous coal and briquettes at about $5,
and coke at about $7. Coal is the most popular fuel for stoves and
central heating plants, though in recent years the popularity of coke
has increased greatly, even promising in time to supplant coal as a
domestic fuel.
Manufactured gas can be obtained in all towns, averages about
6,000 calories per cubic meter, and sells for about $0.70 per 1,000
cubic feet. Gas heaters are used to some extent, but gas has not as
yet been used in connection with central heating plants.
Fuel oil sells in Belgium for about $18 a metric ton. The princi
al purchasers are the industrial plants; they buy direct from the
arge oil companies, which make deliveries in tanks. Gas oil is sold
to those operating motor-driven barges and to the fishing fleet. Some
benzol is made in the country, but practically the entire output is
exported. The Baumé gravity of the fuel oil sold is about 89°,
while that of the gas oil is from 15° to 18°.
CZECHOSLOVAKIA
By Elbert Baldwin, American Commercial Attaché, Prague
The climate of Czechoslovakia is such that artificial heat is re

quired in homes for about five and one-half months of the year,
from mid-October to April. Some sort of heat is provided for in
all homes. The built-in tile stove has for many years been the most
º form of heating apparatus, the installation of such stoves
eing a recognized and highly specialized trade. They give a very
even and pleasant heat, though they are said to be not as economical
to operate as coal-burning iron stoves. Considerable new construc
tion has taken place since 1926, and in many of the recently con
structed apartment houses and hotels central heating has been
installed. Hot-water coal-burning furnaces account for practically
All central heating systems in operation. Very few, if any, private
houses in Prague have central heating plants, and most homes are
982.11—30—2
8
not built with basements suitable for installing such plants. Apart
ment houses, office buildings, hotels, and stores, however, are now
employing central heating to an increasing extent.
It will be difficult to sell oil burners for central heating systems
until the price of oil as a fuel makes the operation of such plants
cheaper than those using coal or coke. The nuisance of taking care
of the furnace and carrying out ashes is not a factor in selling oil
burners in Czechoslovakia, as those able to afford central heating
can also employ servants to atend to the furnace. Owing to general
conditions and the high cost of oil fuel as compared with domestic
coal, it is not believed that Czechoslovakia will in the near fu
ture offer any considerable market for oil burners or oil-burning
equipment.
There are no special taxes, license fees, or inspection charges levied
on the installation of oil burners or heating equipment, although
boilers used in connection with central heating are subject to inspec
tion by properly authorized officials. Refractory fire brick, steel
storage tanks, piping, and the usual electrical material necessary for
installing oil burners can be secured locally. The electric light and
power company in Prague sells all kinds of domestic electrical ap
liances and supplies alternating current at 120 volts in the city of
#. and 220 volts in the suburbs and surrounding country, 3
hase and 50 cycles. For lighting purposes current sells for about
0.08 per kilowatt-hour, and for industrial purposes for about $0.033
per kilowatt-hour plus $0.45 monthly per kilowatt-hour motor
capacity.
Czechoslovakia produces enough coal to supply its domestic mar
ket. Lignite, which sells for about $9 a ton, is the most popular fuel
and is widely used in the prevailing tile stoves. However, the ther
mal efficiency of that fuel is not high and other fuels are frequently
combined with it. Central heating plants burn bituminous coal and
lignite, as a rule. Bituminous coal sells for $11 a ton, German
anthracite at $22, and British anthracite at $26; coke at $15, and
briquettes at $8.
Manufactured gas, running from 4,500 to 4,600 calories per cubic
meter (505.7 British thermal units per cubic foot), is available in
Prague and sells for about $1.36 per 1,000 cubic feet. Gas is not
used to any great extent for heating or industrial purposes.
Fuel oil is sold chiefly for tractors and stationary, engines, but is
available for other purposes if required. The following are the
characteristics of this oil: Fuel oil, Baumé gravity, 28.5° to 29°;
Saybolt viscosity at 104°F., 65 to 68 seconds; flash point, closed cup
(Pensky-Martin), 275° to 320° F.; gas oil, Baumé gravity, 36.4°
to 36.6°; Saybolt viscosity at 104°F., 35 to 45 seconds; flash point,
(Pensky-Martin) closed cup, 133° to 162° F.
DENMARK
By F. Iverson, Office of Commercial Attaché, Copenhagen
. Owing to the cold and damp climate of Denmark, artificial heat

ing of homes is considered not as a luxury but as a necessity for at
least nine months of the year, from September to June. Coal-burn
9
ing stoves are used in most of the homes. It is estimated that only
about 20 per cent of the houses in Copenhagen have central heating,
and in the country districts the percentage of those using stoves
would be even greater than in the cities. Hot-water systems are the
most usual and account for about 95 per cent of all heating plants
installed, while hot air accounts for the remaining 5 per cent.
Modern residences, apartment houses, hotels, and stores are nearly
all equipped with central heating, and there is quite a tendency for
this method to supplant stoves even in the older homes occupied by
the more prosperous classes.
Coal is the fuel used generally for domestic furnaces. Oil burn
ers are the exception; probably there are not more than 300 domestic
oil burners in all of Denmark. In the industrial field there are
some 400 plants using oil for fuel.
Domestic production supplies a very large share of the demand
for central heating plants and oil burners, with some importations
from Austria, Switzerland, the United States, and Germany. Con
siderable effort has been made to introduce American automatic oil
burners for domestic furnaces, but the results have not been gratify
ing, and it will be difficult to sell them as long as oil is unable to
Compete with coal and coke as a fuel. At the present time a ton of
fuel oil costs four times as much as a ton of coal. However, if the
ratio were 3 to 1 there might be some market for oil burners to be
used in connection with central heating.
Another deterrent to fuel oil in both domestic and industrial use
has been the sharp fluctuation in prices, due to the fact that the im
portation of oil has been in the hands of only a few concerns, making
it almost a monopoly. The market in Denmark requires a small
oil burner that would sell at about $150 f. o. b. the United States.
The usual terms of payment for that class of imports is 60 or 90
days sight draft.
There are no installation fees charged against central heating
plants or oil burners, but a permit for such must be obtained from
the building commission. For industrial plants permission is ob
tained from the factory-inspection service. The fire commissioner
also has to be advised of the installation of oil burners of all kinds,
but the building commission generally gives that notice. Refrac.
tory fire brick, piping, the usual electrical supplies, and other ma
terial for installing oil burners can be obtained locally. Electric
Surrent is available throughout Denmark, the most common type
being 220 and 380 volts, alternating, 50 cycles and 3 phase. The
larger light companies maintain stores for the sale of domestic
electrical appliances and endeavor to stimulate the consumption of
Current.
Coal is readily obtainable and sells for about $6 a ton for ordinary
grades and about $5.40 for the semibituminous grades, the latter
"sed to a great extent by bakers. Coke sells at about $5 and anthra
%te at $10 a ton. Briquettes sell at about $8.50 per ton, but that
fuel as well as anthracite, is rarely used. Lignite was popular dur
"º. war but has now gone out of use.
anufactured gas of good quality can be purchased in Copen
hagen for from $696 to $140 per 1,000 cubic feet. Very little is
10
used for heating or industrial purposes, its use being confined to

cooking and lighting.
Fuel oil sells for $out $22 a metric ton. As was pointed out, only
a few dealers import fuel oil, and prices are subject to wide varia
tions. This uncertainty as to price has retarded the introduction of
fuel oil burning equipment in Denmark.
FINLAND
By Frederick B. Lyon, American Commercial Attaché, Helsingfors
In Finland the climate is such that the heating of homes is neces

sary for at least eight months in the year, from the middle of
September to the middle of May. The winter months are dry and
cold, and in the spring and fall the cold is damp and penetrating.
Only a few private homes, belonging to the more prosperous, have
central heating; all other residences are heated with stoves burning
coal, coke, or wood. Formerly it was only, the more expensive type
of house that was built with a basement suitable for the installation
of a furnace, but the new residences of even moderate cost that are
being built in the towns and cities are equipped with central heat.
Apartment houses, office buildings, hotels, and stores in Helsingfors
and other cities in Finland are usually heated from central systems.
Practically all central heating plants are the hot-water type.
Up to the present time very little oil-burning equipment has been
sold in Finland for either domestic or commercial purposes. The
public has shown some hesitancy in adopting oil as a fuel, owing to
the fact that it all has to be imported and it is feared that the supply
might be cut off by strikes or other happenings, and heat is so abso
lutely necessary that no chances of its failure can be taken. It is
estimated that only about 1 per cent of the urban houses have central
heat, but as the country Pº." with a corresponding improve
ment in the standards of living, there should be some increase in
this ratio.
No local taxes, licenses, or other fees are collected on the installa
tion of oil-burning or other heating equipment, nor are there any
local laws governing such installations. Refractory fire brick, steel
tanks, piping, and other supplies for installing oil-burning equip
ment can be obtained locally from importers of such materials.
Electric current in Helsingfors is direct at 120 volts, while in other
districts alternating current of 220 and 380 volts is found. The
electric light companies merchandise ordinary household electrical
appliances.
Wood is the most commonly used fuel in Finland. In some
instances even central heating plants use wood, but the usual fuel is
coal or coke. Finland imports about 1,000,000 tons of coal a year,
and this imported coal is available at the coast towns for about $15
a metric ton. Imported coke sells for about $7 a metric ton. Onl
very small stocks of imported fuel oil are maintained in Finiº,
the market for this fuel not being large. Manufactured gas is avail
able in Helsingfors, but is not used for central heating, its use being
confined to cooking and lighting.
11
FRANCE
By Thomas Butts, American Trade Commissioner, Paris
The season for the heating of homes in France extends from about
October 1 to April 1, and even though the winters are comparatively
mild, the cold is damp and penetrating. Only a very small propor
tion of the residences, even in the large cities, have central heating
plants, and the general custom is to heat only one or two rooms by
stoves or open grates, and one stove is frequently made to furnish
heat for several rooms by running the pipe from the lower rooms
through the upper ones. As a whole, the French are a frugal peo
ple and have established the habit of economizing on fuel, and only
the very expensive residences are equipped with central heating
lants, though most of the houses are built with basements where
rnaces can be installed. Apartment houses, office buildings, hotels,
and stores are generally heated from a central plant. The more
modern buildings of this type use steam, some still use hot water,
and a few hot-air systems are encountered.
There is some demand for fuel-oil burners for industrial pur
oses, but the number of heating plants that have installed fuel-oil
urners is not large. However exports of American oil burners to
France showed a very good increase during 1929, having been valued
at $30,672 as compared with $13,441 in 1928. The sale of fuel-oil
burners for domestic purposes in France is retarded by the high
original cost of such installations and by higher operating costs as
compared with those using other types of fuels. It is only where
ease and cleanliness of operation outweigh the cost of installation
and maintenance that it is possible to sell such equipment.
There are no special taxes for laws affecting heating plants and
oil burners, but a rigid inspection of all steam boilers is required.
All the material necessary for the installation of oil-burning equip
ment can be obtained locally, and, in fact, quite a number of oil
burners are manufactured in France. Electric-current character
istics vary greatly, and in each instance it would be necessary to
. adjust equipment to the local current. The most usual charac
º
phase.
are 110 and 220 volts, alternating current, 42 and 60 cycles,
Anthracite sells in Paris for about $24 a metric ton, bituminous
goal at $20, lignite and briquettes at $16, and coke at $13. These
fuels are readily obtainable in all parts of the country.
Manufactured gas, available in the cities and larger towns, aver
ages about 4,000 British thermal units per cubic meter and sells for
about $1 per 1,000 cubic feet. Up to the present time little gas has
been used for central heating plants.
Annual imports of fuel oil into France amount to some 3,000,000
barrels, practically all of which is consumed by the industries of
the country. These figures do not include the oil used by French
ships as bunker fuel. This fuel oil is of Baumé gravity of 32° to 30°
With a flash point of 112° to 284°F., Luynes-Bordas cup test.
12
GERMANY
By James E. Wallis, jr., American Trade Commissioner, Berlin
In Germany buildings must be heated for about seven months of

the year, from the end of September to the first of May. During
this time the atmosphere is damp and the cold is felt to a much
greater degree than in countries where the humidity is lower. Ger
many does not suffer from extremely cold weather, the average for
Berlin during the winter being above 32° F., although there are
times when the thermometer goes below zero.
Central heating is not used to nearly the extent in Germany that
it is in the United States, and in Berlin and the more progressive
cities probably only 50 per cent of the apartment houses have cen
tral heat; the remaining apartments and smaller residences are all
heated by stoves. The porcelain stove is the most popular method
for heating, but these are being replaced to some extent by cast-iron
stoves, which are said to consume less fuel. Formerly the porcelain
stoves were very large, but the more modern ones are smaller and
are better adapted to the smaller type of apartment that is being
built in the German cities. These stoves burn lignite and have to
be fired only once every 24 hours, maintaining a fairly even heat all
the time. The more modern apartment houses, office buildings, stores,
and hotels are equipped with central heating, but it must be remem
bered that such buildings in Germany have a much longer period
of service than in the United States and that the number of new
structures of this class that are being built is relatively small, it
being customary to rebuild and modernize buildings rather than tear
them down and erect new structures on their sites.
To alleviate the housing shortage in Germany many large apart
ment houses, housing some 250 families, have been erected in the
poorer sections of the cities. These apartments, which are rented at
low rates, are frequently supplied with heat from near-by power
plants, which utilize their surplus boiler capacity and exhaust
steam for that purpose.
There prevails in Germany the general impression that stove heat .
is much more healthful than that provided by central heating,
and this opinion has seriously retarded the general adoption of
central heat. , Almost any building in Germany can be equipped
with a central heating plant, as practically all houses have base
ments where furnaces may be installed. At the present time hot
water systems are the most popular for small buildings, while steam
heat is used for large apartment houses, stores, and hotels.
Although the United States supplied Germany with oil burners
and parts valued at $25,918 during 1929, the use of fuel oil as a
heating medium in that country is still uncommon. It is estimated
that not more than 50 or 60 fuel-oil burners for central heating
have been sold in the whole country. American automatic burners
are favorably known and considerable effort has been expended to
increase their sale. The Germans are evincing an increasing interest
in the subject of automatic oil burners for heating, but a large
amount of educational work remains to be done before old prejudices
and customs are laid aside and new methods accepted by the public
13
as a whole. It should also be borne in mind that the purchasing

power of the average German family is extremely small and that
it will be many years before such families are in a position to pur
chase automatic oil burners. However, there are, of course in
Germany, as in every country, a certain class of people with sufficient
means to adopt the latest and best household appliances, and it is
there and to the larger apartment houses and similar buildings that
the American manufacturer of oil-burning equipment for central
heating must look for his immediate market.
In all German cities there are municipal regulations requiring
that any space used for central heating plants must be fireproofed
before such plants are installed. However, there are no special taxes,
license fees, or inspection charges that must be paid upon installa
tions of oil burners and other heating equipment.
All the supplementary material necessary for the installation of
oil burners can easily be obtained in Germany. In fact, an imitation
of an American automatic oil burner is being manufactured in that
country. The electric current available varies in different parts
of Germany, but there is a movement on foot to standardize it at
220 volts, 50 cycles, alternating current for domestic use. Until
this standardization is accomplished, electrical equipment will have
to be adapted to the local requirements where it is to be installed.
The electric companies endeavor to increase sales of appliances by
having show rooms where they are displayed and prices given,
though no sales are made at such places.
Coal, lignite, briquettes, and coke are the most usual fuels through
out Germany, for use in both stoves and central heating plants.
Coal sells for about $12 a metric ton; lignite and briquettes for
$9; blast furnace coke for $17; and gas coke for $12. Little, if any,
wood is used for fuel.
Manufactured gas is available in most German cities. In Berlin
it runs about 400 British thermal units per cubic foot and sells for
about $1.20 per 1,000 cubic feet. A lower rate of about $0.75 a
1,000 cubic feet is given when gas is used for domestic heating. Gas
as a fuel for central heating is considered as about 25 per cent more
expensive than coke or oil.
Up-to-date methods for distribution of fuel oil are employed in
Germany, and deliveries are made by truck to the tank of the
customer. It is calculated that fuel oil having a thermal content
of 10,500 calories per kilo is as cheap a fuel as coke of 6,000 calories
heating value and 25 per cent cheaper than gas with a thermal value
of 3,600 calories per cubic meter. All fuel oil marketed in Germany
is produced by the low-temperature distillation of coal tar and lig
nite coal tar, and its characteristics are similar to like oils sold in the
United States.
GREAT BRITAIN
By Homer S. Fox, American Trade Commissioner, London
The winters in Great Britain are cold and damp, and though
Very low temperatures are not registered, the heating of houses for
Six or seven months, from October to May, is the universal practice.
14
Coal grates are the most widely used means of supplying artificial
heat. 'Since outside temperatures are not low they are sufficient to
temper the rooms. The English people have a strong preference
for open fires and are rather prejudiced against central heating, and
because of this prejudice and the fact that the older houses do not
have basements where furnaces can be installed, very few homes
in England have central heating systems, probably less. than, 1 Per
cent of them. The newer apartment houses, office buildings, hotels,
and stores are generally heated from a central plant and to a certain
extent, older buildings of these types are installing them....Many
office buildings, however, even in London, are still heated with only
grates or stoves.
The use of central heating and oil burners will never be propor
tionately as great in the British Isles as in the United States, as
the custom of open grates for heating is one that is based on cheap
coal and has been established for many generations. Some of the
large buildings, such as apartment houses and hotels, are now using
oil burners in connection with their heating plants, and it is prin
cipally for these and commercial oil burners for industries that there
is a market. Great Britain was our second best customer during
1929 for oil burners and parts, ranking after Canada, and taking
exports valued at $245,837 or about 17 per cent of total exports under
this heading.
Great Britain is a country in which the standards of living closely
approach those of the United States and the heating of homes is
universal, but there is little possibility of getting any great number
of people interested in central heating and oil burners. Nearly all
the heating Plºt: that have been installed are of the hot-water type
and use coal as a fuel, though there is also a small proportion of
vapor systems. Several types of oil burners are on the market, both
of domestic manufacture and imported, the latter being chiefly
American. Very few automatic oil-burning systems have been in
stalled, however, and it is believed that the British market for these
will always be very small.
There are no special taxes, fees, laws, or regulations governing the
installation of oil burners or other central-heating equipment. In
the case of steam plants the boilers are subject to inspection and the
storage of fuel oil must comply with the requirements of the insur
ance companies. In ordinary, buildings the insurance companies
generally attend to having the boilers inspected.
Refractory fire brick, steel storage tanks, iron pipe, the usual elec
trical supplies, and similar material used in installing oil burners can
readily be obtained locally.
It is impossible to make any general statement, as to type and
voltage of electric current available, as in the London district alone
there are 37 separate generating companies and the yariation in volt
age and type is extreme. About all that can be said is that alternat
$ng current at 110 and 220 volts is fairly common. There is a move
ment on foot to standardize current throughout England, but this will
take a number of years and, in the meantime, any equipment depend
ing upon electric power must be adapted to the particular section
in which it is to be used. The electric companies sell appliances
and are active in promoting their sale.
15
Coal is the predominant fuel in Great Britain, since it is mined

extensively there. Anthracite sells in London for about $16 a ton
and is not widely used, owing to the high price and also to the fact
that only about 5,000.000 tons a year are mined and most of it sold
abroad. Grate coal sells for about $12 or $13 a long ton and stove
coal for about $9. Prices vary in diſſerent parts of the country,
depending upon their distance from the mines, coal at New Castle
being only $8 a ton. Smokeless fuel from low-temperature carbon
ization of coal has also recently come on the British market, retail
ing in London for $12 to $13 a ton. The use of this fuel will un
doubtedly increase, as a number of plants for its manufacture are
being erected and those already producing are increasing their
capacity. Gas coke sells for about $10 a ton and is used widely for
stoves and hot-water heaters.
Manufactured gas is generally available, the average price being
about $1 per 1,000 cubic feet in the London district. Gas grates
during recent years have become increasingly popular and have
supplanted a number of coal grates, but gas has not been used for
central heating plants to any great extent.
Fuel oil is widely used in Great Britain. The annual consumption
is almost 100,000,000 barrels, exclusive of the oil that is imported
and sold to ships engaged in foreign trade and bunkering at British
ports. Practically all fuel oil imported is used for industrial pur
poses and for treating highways. On the industrial side the use is
greater in engines than for the generation of heat. At the time of
the coal stoppage in 1926 some experiments were made with using
fuel oil in the pottery and other industries of the country where oil
might be substituted for coal, but since coal mining is one of the
most important national industries, the use of any substitute for
coal as a fuel naturally meets opposition. Fuel oil imported into
England sells for about $19 per long ton and Diesel oil for about
$22.50. The furnace fuel oil marketed has the following character
istics: Specific gravity, about 0.930 to 0.960 (20.6° to 15.9° American
Petroleum Institute) : weight, about 8 pounds to the American gal
lon: flash point, 150° F.; viscosity. Redwood No. 1 at 100° F., 40 to
50 seconds; caloric value. 18,750 British thermal units per pound.
The Diesel oil marketed has the following characteristics: Specific
gravity, 0.860 to 0.880 (33° to 29.3° American Petroleum Institute);
weight, about 7.3 pounds to the American gallon; flash point, about
150° F., viscosity. Redwood No. 1. at 60° F., 40 seconds: caloric
value, 19.600 British thermal units per pound. Prices for fuel oils
in Ireland are about $10 a ton greater than those given above. All
fuel oil sold is a petroleum product, though it is reasonable to expect
that within not too distant future a coal-distillation product will
come on the market in commercial quantities.
GREECE
By Harry J. Harris, Office of Commercial Attaché, Athens
The length of the heating season, in Greece is from November to

March in the southern districts and from the middle of October to
the end of April in the northern section (Macedonia and Thrace),
where the winters are very damp and unpleasant. The greater por
98.211—30—3
16
tion of the country enjoys a climate known as Mediterranean, that is,

it is very hot in summer and rainy and mild during the winter
months, so that only the more modern and expensive residences have
central heating plants. Very few of the older houses have adequate
basements for the installation of furnaces, and the most usual method
of heating is by cast-iron, brick, or porcelain stoves burning wood
and coke. In the country districts among the peasant classes char
coal braziers are used to a greater extent than any other means of
heating. At one time oil stoves were popular in the cities, but owing
to the high cost of kerosene, their use is becoming less and less com
mon. Practically all of the recently constructed apartment houses
and the first-class hotels in Athens and other important Greek towns
have central heating, but older apartment houses, office buildings,
and stores do not have central heat. The older heating installations
in Greece are of the hot-water type, while among new installation
liot-air and steam systems predominate. The possibilities of the
Greek market for domestic oil-burning apparatus are not great, as
such equipment is beyond the means of the middle and poorer classes.
The only market that might be developed is among the wealthy and
for installations in modern hotels and apartment buildings, pro
vided that it can be demonstrated that oil can compete in cost with
other available fuels. Little oil-burning equipment for either domes
tic or commercial purposes has been sold in Greece.
No special taxes or license fees have to be paid on the installation
of central heating plants, nor is there any elaborate legislation gov
erning their installation, the only requirement being that such plants
shall be installed in fireproof basements or compartments. All
supplies necessary for the installation of oil-burning equipment can
be obtained from importers of such material in Greece. Alternat
ing current, 3-phase and 50 cycles at varying voltages, can be had
in the principal towns. The electric supply of the city of Athens is
now being changed from 110 volts direct current to 220 and 380 volts,
3-phase, 50-cycle alternating current.
All coal has to be imported into Greece, as none is mined within
the country. Anthracite sells for about $22 a metric ton, Cardiff
coal and briquettes at a little more than $8; oven coke at $12, and
gas coke at $11, at all Greek ports. Coke is one of the most popular
fuels for stoves. -
Manufactured gas, obtainable in Athens, Piraeus, Patras, Volo,

and Salonica, averages 4,800 calories per cubic meter and sells for
about $1.90 per 1,000 cubic feet in Athens and Piraeus, its principal
use being for cooking and º
Very little fuel oil is imported, the only demand being on the
part of a few ships equipped to burn this fuel. The lightest fuel oil
that would not come under the Greek Government oil monopoly has
the following characteristics: Specific gravity at 59° F., 0.8654 or
Baumé 32°: flash point (open cup) 190° F., fire point (open cup),
215° F.
ITALY
By D. F. Spencer, Assistant Trade Commissioner, Rome
In Rome and the Italian cities to the north the better class homes
have some sort of artificial heat from about November 15 to April
15, but the heating of houses is not the universal practice. In Naples
17
and the cities of Sicily., where the climate is miller, only the more
rosperous people consider artificial heat as a necessity, and possibly
ave open grates or stoves in their living rooms and no heat else
where. A very large part of the people live in apartment houses or
“villinos” (buildings with three or four apartments). Only the
wealthy have detached houses, and their number is so small that they
are not of importance in considering the market for domestic oil
burners. Very few apartment houses are equipped with central
heating plants, and when they are each tenant is assessed according
to the number of radiator units he has. The more usual practice
where any form of general heating is employed is for each apart
ment to install its own hot-water system by means of a small boiler
placed in the kitchen or back hall. The pipes from the boiler that
run along the ceiling are exposed and the return pipe is laid beneath
the floor. Even though the hot water is forced down into the
radiators, such systems give fairly satisfactory results. The pipes
are not insulated, since they are all in the apartment and any heat
thrown off helps to warm the rooms. The usual fuel for those small
heating units is coal, which is mixed with wood when it is desire l
to maintain only a moderate fire.
The more modern hotels and stores are heated from central plants
located in the basement. At hotels having heat it is the common
practice to charge guests for having the radiator turned on in their
I'00ms.
During recent years a few detached houses costing about $25,000

have been built around Rome. Those houses have basements where
it would be possible to install furnaces. However, none of them
have been built with central heating plants. In Italy the practice
revails of buying one floor of an apartment in a building, and it is
argely because of that custom that apartment houses are not built
with central heating systems, since central heat is not considered as
a necessity and such installations would only increase the cost of the
apartments without necessarily adding to their sales value.
Very few oil burners for domestic heating purposes have been sold
in Italy, and those chiefly of European manufacture. Generally,
they have not proven very satisfactory, largely because the dealers
in such equipment have not undertaken to give service after the
apparatus was installed. However, in spite of this it would seem
that Italy offers a small market for domestic oil-burning equipment
for hotels, stores, and the larger residences. The climate is not
severe and the purchasing power of the Italian people is not very
high, so that the market will never be large.
There are no special laws, regulations, or taxes affecting oil
burners, but central heating plants of all kinds are subject to cer
tain local regulations. The supplemental material necessary for the
installation of oil burners can be obtained locally. Characteristics
of electric current vary in different parts of Italy, but the most usual
1S alternating current of 110 and i20 volts. 2-phase and 45 cycles.
he light and power companies do not undertake the sale of ele trical
Appliances or do anything to promote their use. Electric heaters are
used to a very small extent. as they are considered too expensive
to operate.
+ --
lo
Coal, oil, and wood are the most popular fuels in Italy. All coal
has to be imported and sells for $15 to $20 a metric ton. Domestic
gas coke sells for about $9, but has little heating value. Manu
factured gas is available in the larger cities. The Rome gas aver
ages 450 British thermal units per cubic foot and sells for $1.70
per 1,000 cubic feet. Gas is used only for cooking and illuminating.
Fuel oil sells for about $14 a metric ton for the heavier grades
and $24 for the lighter grades at Italian ports. A considerable
amount of fuel oil is sold in Italy, practically all of which is used
for industrial purposes. The specific gravity of the lighter oils
imported is 0.860 at 59° F. and the ſlash point 167° F. The heavier
oils have a specific gravity of 0.955 to 0.965 at 59° F. and a flash
point of 150° F. Russian and Persian fuel oils are sold to a con
siderable extent in Italy.
LATVIA
By Lee C. Morse, American Trade Commissioner, Riga
In Latvia the climate is such that the heating of homes is the

universal practice for six or seven months of the year. Very few
private homes have central heating plants, and it is estimated that
not more than 30 per cent of the apartment houses, hotels, and
stores in the cities of Riga and Libau, the principal towns of the
country, have central heating. Wood-burning stoves are the most
popular method of heating houses, and coke is the fuel generally
used in central heating systems. The few existing heating systems
are hot-water and steam. It is not believed that Latvia offers any
market at the present time for oil-burning equipment for either
domestic or commercial purposes.
There are no special laws, taxes, or regulations affecting the sale
or installation of oil burners. Most of the material, such as fire
brick and steel tanks, for installing oil burners would have to be
imported. Electric current at 120 volts direct and 220 and 380
volts, alternating, 3 phase and 50 cycles, is available in Riga.
Wood is the most popular fuel, but coal is available at $15 to $22
a metric ton. Coke sells for about $8 a metric ton and briquettes
at $7. Manufactured gas is available in Riga, selling for about
$1.10 per 1,000 cubic feet, but is not used for heating purposes.
Little, if any, fuel oil is sold in Latvia, there not being as yet any
demand for it.
THE NETHERLANDS
By C. Gorter, Office of Commercial Attaché, The Hague
The winters in the Netherlands are cold and damp, and the heat
ing of homes for about eight months of the year is the universal
practice. Most houses are heated with stoves, but there is a grow
ing tendency to install central heating systems in the houses intended
for the use of the middle and upper classes. All new dwellings of
that character, and many of the older ones, are being equipped
with such plants. . Most apartment houses, stores, and office build
ings have central heating, although there are a few buildings left
which still rely upon stoves. Practically all hotels now have central
heating. The most popular kind of central heating for apartments
19
and small residences is hot water, with the boiler placed in the
Kitchen where the servant can attend to it. About 75 per cent of
central heating systems, it is estimated, are of the hot-water type
and the remaining 25 per cent are steam systems. Hot water is used
where continuous heat is desired, such as for homes, hotels, and
hospitals, while schools, churches, theaters, and factories, which
require heat only during certain hours of the day, use steam.
The Netherlands is our best customer in continental Europe for
oil-burning equipment. I)uring 1929 our exports of such apparatus
to that country were valued at $61,434 as compared with $30,672 in
1928, a gain of 100 per cent. Practically all of the American burners
sold were for use in connection with domestic heating plants, as
very few industrial oil burners are used. It is estimated that more
than 300 domestic oil burners have been installed in the Netherlands,
the greater part of such equipment being imported from the United
States. There is some local manufacture of semiautomatic oil-burn
ing apparatus based upon Swiss patents and some are imported
from Germany, but American equipment dominates the market.
There is a slowly increasing demand for oil burners, but their
high price limits that demand to the wealthier classes for private
residences and to such public buildings as hospitals, schools, and
hotels. A small burner selling at a lower price than those now on
the market, if it can be produced, would possibly meet with a
better demand among the middle classes living in apartments where
each unit has its own heating plant. Servants are comparatively
cheap, so the saving of labor in taking care of the furnace is not
a selling point. The saving of fuel, cleanliness, and the possibility
of keeping the house at any desired temperature should be the
features emphasized in sales campaigns. In order to encourage the
middle classes to adopt automatic burners, it might be advisable to
sell on the installment plan and service such installations at a fixed
charge so as to inspire confidence in the efficiency of that method
of heating. A number of American makes of automatic fuel-oil
burners are already well represented in the Netherlands.
There are no special local taxes, licenses, or inspection fees affect
ing the installation of oil-burning equipment, although there are
certain restrictions put upon steam plants having a pressure of more
than 1 atmosphere. All material, such as refractory fire brick, steel
storage tanks, iron piping, and the usual electrical supplies, necessary
for the installation of oil burners can be obtained locally.
The electric current most common is alternating at 220 volts,
50 cycles and 1 or 2 phase. All the light and power companies sell
electrical appliances to the public in an endeavor to increase the
use of current.
Coal, chiefly of domestic production, is readily available and sells
for about $10 a metric ton. Coal briquettes sell for $8, lignite
briquettes for about $6, and coke for about $7 a metric ton. Coal
is the most widely used fuel, though gas and electric heaters are
used to some extent.
Manufactured gas of about 450 British thermal units per cubic
foot sells in the principal towns for about $1.20 per 1,000 cubic feet.
There is a change in this rate during the winter months to about
$0.42 per 1,000 cubic feet and a fixed charge of about $3 a month
20
assessed against each consumer. Gas is used for central heating

plants to only a very small extent as the rates are considered as
prohibitive.
Fuel oil is readily obtainable in the Netherlands and sells for
about $16 a metric ton for the heavy grades. As a rule, American
fuel oils are more popular than those sold by the Dutch Shell Co.
NORWAY
The Norwegian market for fuel-oil burners is similar to that

existing in Sweden, since the climate and the customs and living
standards of the people in the two countries are very much the same.
Norway has also awakened to the value of American oil burners, as
shown by the fact that exports from the United States to that
country during 1929 were valued at $5,246 as compared with $1,568
during 1928. The market is a small one but one that should show
further development in the future.
POLAND
By Gilbert Redfern, Assistant Trade Commissioner, Warsaw
The climate in Poland is such that artificial heat in homes is

necessary for seven or eight months of the year, the most usual
method of heating being wood or coal burning stoves. Only a very
small percentage of the private residences have central heating
plants, since few such dwellings have basements where furnaces
may be installed. Modern apartment houses, office buildings, hotels,
and stores in the larger towns are generally heated from central
plants, hot water and steam being the systems in most general use.
Up to the present time practically no oil burners for domestic heat
ing plants have been sold in Poland, and it is not believed that
there will be any market for such equipment in that country for
some time to come. The initial cost of oil burners is too high for a
market where the purchasing power is not great, and coal and other
fuels are cheaper in Poland than oil. -
Fire brick, iron piping, steel tanks, and the usual electrical equip
ment for installing oil burners can be obtained locally. The electric
current in most cities is 110, 220, and 380 volts, alternating, 3 phase
and 50 cycles. Local electric companies, as a rule, merchandise ap
pliances to increase current consumption. There are no special
taxes or regulations affecting the installation of oil burners.
Coal is readily obtainable in all parts of Poland and sells at $6
to $7 a ton. Manufactured gas is available in the principal cities
and averages 4,000 British thermal units to the cubic meter. It sells
for about $0.90 per 1,000 cubic feet. Natural gas is available in
Galicia and the southwest section.
Fuel oil is sold for about $23 a metric ton and its specific gravity
is about 0.865 to 0.890. It can be used for combustion only at very
high temperatures, and it is believed that gas oil, which sells on
:* -O -Y
the market for about $3; a metric ton, would be more suitable for
domestic oil burners.
21
RUMANIA
By L. J. Cochrane, Assistant Trade Commissioner, Bucharest
The climate of most of Rumania is dry, and the heating of homes

is necessary only from November to April. The must usual method
employed for heating the dwellings of the middle classes is with
stoves burning wood or coal; it is only in the newer houses built by
wealthy people that centrar heating systems are found. The peasant
classes use open fireplaces universally. Only the more modern
apartment houses, stores, office buildings, hotels, and Government
buildings now have central heating plants, but there is a growing
tendency to install central heat in the better homes. The average
purchasing power, however, is not high, and very few of the older
houses are built with basements suitable for installing furnaces.
It should be possible to build up in Rumania a small market for oil
burners to be used with central heating plants, as the country is
interested in central heating, produces considerable quantities of oil,
and is accustomed to using it as a fuel for industrial purposes.
Oil burners for commercial purposes are being sold, and a few.
imported principally from Germany and Austria, have been installed
in connection with central heating plants.
Since central-heating and oil-burning equipment are comparatively
new, there are as yet no laws, regulations, or taxes affecting their
installation. Refractory fire brick, steel tanks, iron piping, and the
usual electrical supplies necessary for the installation of oil burners
can be obtained from local dealers. Alternating electric current at
208 volts, 50 cycles, and 3 phases is available in the principal Ru
manian cities. The light and power companies do not, as a rule,
sell electrical appliances.
Wood is regarded as the cheapest fuel and is used by the great
est number of people. Coal is readily obtainable and sells for about
$18 a metric ton, briquettes for about $21, coke for about $20, and
lignite for about $7.
Natural gas is available in the oil-producing areas of the country
and is sold for domestic heating at about $0.006 per cubic meter and
for commercial uses at about $0.005 per cubic meter. Manufactured
i. sold in the larger cities for about $1.35 to $1.80 per
eet.
1,000 cubic
Fuel oil of domestic production is readily obtainable and sells for
about $5.40 a metric ton for crude petroleum and about $25 a metric
tº for high-grade gas oils. The characteristics of Rumanian fuel
ºil are as follows: Baumé gravity, 22° to 24°: Saybolt Universal
Wiscosity at 60° F., 22 to 45 seconds; flash point, Pensky-Martin
losed cup, 248° to 273° F.; and Baumé gravity, 16° to 19° Saybolt
ºliversal viscosity at 60° F., 37 to 75 seconds: flash point, Pensky
artin closed cup, 230° to 255° F. The consumption of fuel oil in
"mania has increased considerably during recent years, but only
* Comparatively small part of this is for central heating. The
**ter part is used by the petroleum companies, railways, and
§ºus industrial plants. A portion of the oil shown as consumed
in Rumania is sold to oil-burning ships fueling at Rumanian ports.
...).)
SPAIN
By Charles T. Hohenthal, Office of Commercial Attaché, Madrid
In Madrid, Barcelona, and Bilbao the better-class homes have

some sort of heat from November until April, while in the southern
part of Spain it is not the usual practice to have any kind of arti
ficial heating. A majority of the homes in northern Spain are
heated by coal or wood-burning stoves," and it is only in the resi
dences of the wealthy that central heating systems are found. In
poorer homes frequently the only heat is that provided by the fire
used for cooking. Most of the recently constructed apartment
houses and office buildings have central heat, but even in these the
system is frequently not used, its installation having been for ad
vertising purposes. The better-class hotels all have central heating
systems.
The usual type of heating system in apartments is the individual
plant with a hot-water boiler and furnace located in the kitchen or
hall of each apartment and taken care of by the servant. Hot-water
systems outnumber all others, although a few experiments have
been made with hot air and steam. Even though American exports
of fuel-oil burners and parts to Spain showed substantial gains in
1929, being during that year valued at $14,210 as compared with
$6,103 during the preceding year, it is not believed that Spain offers
any considerable market for domestic fuel-oil burners, as the climate
is not severe and the average purchasing power of the people is so
low that central heat, except for the wealthy, is looked upon as a
great luxury.
The necessary supplemental supplies for installing oil burners can
be secured in the principal cities. Electric current of 125 and 220
volts, 60 cycles, 3 phase is available in most of the Spanish towns.
Manufactured gas can be obtained in the more important cities,
and in Madrid is sold for $1.65 per 1,000 cubic feet and is considered
as too expensive to be used in central heating plants.
Coal sells for about $18 a metric ton and coke and briquettes at
about $12. Coal is the principal fuel used in the few central heating
plants that have been installed and also is a very popular fuel for
stoves.
There is very little fuel oil sold in Spain, and the small amount
marketed there is principally for use in Diesel engines and ships
taking on fuel at Spanish ports.
SWEDEN
By Basil D. Dahl, Assistant Trade Commissioner, Stockholm
The winters in the northern portion of Sweden are long and

severe, making the heating of homes there necessary for about nine
and one-half months of the year: in central Sweden heating is neces
sary for eight months during the year; while in southern Sweden
heat is considered as necessary for about six and one-half months.
In the larger cities about 65 per cent of the people live in apart
ment houses, and most of those buildings have central heating
systems. Individual heating plants, with a furnace for each apart
ment are not found in Sweden as they are in other parts of Europe.
23
All new apartment houses are built with central heating systems
and they are being installed in some of the older buildings, but
there are still an appreciable number of apartment houses in Sweden
that rely on stoves, generally one in each room, for heating. In the
smaller towns, where more detached dwellings are encountered, very
few have central heat, but in the cities detached residences are gen
erally occupied by the more prosperous classes and a number use
central heating. The people in the country districts and small
towns rely on stoves almost entirely for heating, the most popular
type being the tall, soapstone stove that burns wood and runs from
the floor to the ceiling. All office buildings, stores, and hotels have
central heat, the hot-water type being used chiefly, while some of
the churches are heated with hot air. Steam heat is used to only a
very small extent.
Because such a large percentage of the middle and upper classes
in Sweden live in apartment, houses where the heat is supplied by
the owner of the building, relatively few persons are in the market
for central heating plants, apartment-house owners being the largest
single class of people purchasing such equipment.
There are three factories in Sweden manufacturing oil-burning
equipment, with a total annual output of only some 50 units. These
are sold at about $50 a unit, not including installation charges, and
were considered prior to 1929 as sufficient to supply the entire
Swedish demand for such apparatus. The domestic product was
regarded as not so efficient as the imported, but since it was so much
lower in price, it was considered that it could compete successfully
with and practically exclude the latter from the market. However.
during 1929 the Swedish people evidently awakened to the value and
virtues of American fuel-oil burners, as during that year they pur
chased in the United States $29,258 worth of such equipment as com
pared with only $150 during 1928.
The forced-draft system is used on all fuel-oil burners manufac
tured in Sweden, the pressure usually being from 1 to 3 atmospheres.
None of these burners are so constructed that the oil must be kept
under pressure; they have either automatic or manual control, but
ignition is made only by hand.
Oil as a fuel for central heating plants is considered as from 50 to
100 per cent more expensive than coke, the most popular fuel. Do
mestic servants are relatively cheap in Sweden and are accustomed
to looking after the central heating furnace. Owing to these two
factors, more expensive operating costs and cheapness of domestic
help, the principal points to be stressed in making sales of domestic
fuel oil-burning apparatus in Sweden are cleanliness of operation
and maintenance of any desired temperature. It is believed that
Sweden will continue to be a good market for American fuel oil
burning equipment, now that it is known in that market.
.There are no special taxes, licenses, or inspection fees charged on
ºil burners or central heating equipment. The only special regula
tion affecting such apparatus is the requirement of the building code
that the oil tank must be incased in concrete and can be filled only
from outside the building, the room in which the tank is located
must be well ventilated, and the threshold must be at least 20 centi
24.
meters high. Fuel oil having a flash point below 104°F. can not
be used as fuel for heating buildings.
All supplementary material for installing oil burners can be ob
tained easily and cheaply in Sweden. Electric current of varying
types is available throughout the country. The current in Stock
holm is direct of 220 and 440 volts. Some of the electric companies
sell appliances, but it is not the universal practice.
Unscreened steam coal sells in Stockholm for about $7 and anthra
cite at from $19 to $22 a ton. Coke sells at from $9 to $11 a ton and
is the fuel used in most central heating plants. Coal briquettes are
used only to a small extent and retail for about $9 a ton. Wood is
relatively cheap, selling at $3 to $4 a cubic meter.
Gas is available in some 31 towns in Sweden, most of the com
panies being operated by the municipalities that they serve. In
Stockholm manufactured gas sells for about $0.027 per cubic meter
for 300 cubic meters consumed during one month, while the rate for
consumption of 300 to 800 cubic meters during one month is about
$0.054 cents per cubic meter, this being the cheapest rate given. For
greater monthly consumption there is a slight increase in rates. Gas
is considered too expensive to be used for central heating; 85 per cent
of it is used for cooking and most of the remainder for lighting.
Fuel oil is available in the principal cities and sells for about $24
per metric ton in Stockholm. Gas oil is the only kind of fuel oil
used in Sweden for domestic heating, and that offered on the market
there has the following characteristics: Specific gravity at 60° F.,
0.880; viscosity at 68° F., Engler test, 1.48; at 122°, Engler test.
1.21; flash point, Pensky-Martin, 187° F. Comparatively little fuel
oil is sold in Sweden.
SWITZERLAND
By Kenneth M. Hill, Assistant Trade Commissioner, Berne
The period for the artificial heating of houses varies in different

sections of Switzerland, but the average is about six and one-half
months of the year, from October to April. At least 60 per cent
of the urban homes have some sort of central heating system, while
the percentage in the country and smaller towns is not more
than 30. Small coal or wood burning stoves are used where there
is no central plant. In many of the older structures, both apart
ments and detached residences, there are no basements, and this
makes it difficult and expensive to install furnaces. However, all
of the newer residences, apartment houses, offices buildings, stores,
and hotels are equipped with central heating systems. It is esti
mated that some 90 per cent of all installation are of the hot-water
type, 5 per cent steam, and 5 per cent hot air, the latter type being
used in a few buildings, such as churches and halls, where heat
is required only a few days during the week. . -
The majority of the oil burners that have been installed in Switzer
land are found in the large hotels and bakeries, and their use in
private homes is still uncommon. Some of the industrial plants
have installed combination oil and coal burning furnaces in order
to utilize whichever fuel is at the moment, the cheaper. They are
arranged so that the change from one fuel to the other can be made
without any loss of time. The growing use of oil-burning equip
25
ment is indicated by the increased imports of fuel oil, which in

1928 were more than double those of 1922, though some of this in
crease is to be attributed to the greater use of Diesel engines. The
increase in the use of oil-burning equipment, however, has been more
on the industrial and commercial side than for domestic heating
purposes.
Sales of American oil burners and parts to Switzerland increased
from $2,885 in 1928 to $17,818 during 1929. A considerable portion
of the demand in Switzerland for fuel-oil burners is supplied by
domestic manufacture, and it is chiefly that competition that the
American manufacturer must overcome. Swiss heating engineers
practically control the type of heating plant that is installed in
buildings, and the best method of entering the field would be by
securing a firm of such engineers as a representative. The larger
initial expense and higher operating costs will always hamper the
sales of domestic oil burning equipment in Switzerland.
There are no laws or special taxes affecting the installation of cen
tral heating plants and oil burners, although an annual inspection
of all heating plants is required. All the material and supplies
necessary for the installation of oil-burning equipment can be secured
easily in Switzerland. Most of the available electric current is alter
nating, 3 phase, 50 cycles, supplied at 110 and 220 volts.
Coal sells at $19 to $25 a metric ton, briquettes at $15, coke at $18,
and anthracite at $23. Central heating plants use coal almost exclu
sively. -
Mºufactured gas, available in the principal cities, sells for about

$1.75 per 1,000 cubic feet and is used almost exclusively for cooking
and lighting, as it is considered as too expensive for central heating
and industrial purposes.
Considerable quantities of fuel oil are marketed in Switzerland
and sells at $32 to $38 a metric ton. Its principal use is for com
mercial purposes, as up to the present time it has been considered
too expensive to be used for domestic heating. The market prefer
ence is for gas oil rather than crude oil, even though the former
is the more expensive. This preference is based on the fact that
crude oil tends to solidify in cold weather and has a disagreeable
odor which makes its use in bakeries impossible. Also, the higher
calorific value of the gas oil is believed to compensate for the addi
tional cost. The following are the characteristics of the gas oil sold:
Baumé gravity, 29°; viscosity, Engler test, 1.3 to 1.7; flash point,
Pensky-Martin closed cup, 183° F. The fuel oil has the following
characteristics: Baumé gravity, 17.3° to 25.5°; viscosity, Engler test,
4 to 20; flash point, Pensky-Martin closed cup, 194° to 302°F.
TURKEY
By Edwin P. Keeler, Assistant Trade Commissioner, Istanbul
. The climate of Turkey is such that the heating of houses, is de;

sirable from about October 15 to April 15, but the actual time of
eating is actually about a month less, even in the high-class apart
ment houses in the cities of Istanbul and Smyrna. §. !...i
plants are found in only a very few buildings, it being estimate
that not more than 5 per cent of the apartment houses have such
Systems that among private residences probably not more than one in
26
a thousand have central heating systems, and that very few office
buildings and stores have central heating. The middle classes and
even the wealthier people rely upon coal and wood-burning stoves for
heat, while the poorer classes use charcoal braziers. The winters
at Angora, the capital, are more severe than along the coast, and
there is a good deal of new construction in progress there, so that
in that city there should be some opportunity for the sale of central
heating plants. Fortunately, from the standpoint of the installation
of central heating systems it is the custom to build apartment houses
and large residences with basements where furnaces could be in
stalled.
No oil-burning equipment, for either domestic heating or commer
cial purposes, has been sold in Turkey in so far as is known, and it
is not believed that there will be, in the near future, any appreciable.
demand for such apparatus. Relatively few people are in a position
to purchase domestic oil burners, and it would be difficult to convince
those few of the advantages of such a system. Domestic help is so,
cheap that the mechanical advantages make little appeal to the
wealthier classes, and if an automatic oil burner were installed it
would probably be much more difficult to secure the mechanic neces
sary to install it and to keep it running than it would ever be to get
some one to attend to an ordinary furnace.
There are no industries in Turkey using oil as a fuel. A few.
apartment houses in Istanbul have separate heating plants for each
apartment, and there might be some possibility of selling domestic
oil burners to residents in those.
Iron piping and the usual electrical supplies can be obtained lo
cally, but generally only a very small supply of refractory brick is
carried. Steel tanks can be made locally: though possibly not of
as good quality as those imported, they would have the advantage
of being built to conform to the space they are to occupy.
Electric current is available in some six or eight cities. The cur
rent in Istanbul is alternating, 3 phase and 50 cycles, at 110 and 190
volts in some parts of the city and 220 and 380 volts in other parts.
Work is being carried on to convert all current in the city to this.
last voltage. Smyrna and Angora have alternating current at 220
volts, 3 phase and 50 cycles. There are no special laws, taxes, or
regulations affecting the installation of oil burners or central heat
ing plants.
The coal mined in Turkey sells at $6 to $7 a ton, and in addition to.
this quite a good deal of coal is imported from Great Britain and
Russia ºić sells for about $20 to $23 a ton for the former
and $16 to $17 a ton for the latter. Coke, produced by the gas
plants in Istanbul and Smyrna sells at from $13 to $14 a ton.
Manufactured gas is available in Istanbul and Smyrna, and a
gas plant is said to be under construction at Angora. The price of
gas is fixed quarterly in Istanbul by the municipality and is gener
ally sold for about $1.20 per 1,000 cubic feet. Gas is not used for
heating or for commercial purposes. - - -
A good deal of fuel oil is sold, but its use is confined entirely to
oil-burning ships fueling in Turkey. Oil as a fuel for domestic and
industrial purposes is considered too expensive.
27
- AFRICA
EGYPT
By Charles E. Dickerson, jr., American Commercial Attaché, Cairo
The climate in Egypt is such that there is little need of artificial

heating, and it is only in the hotels catering to the winter tourist
trade, in the homes of the very wealthy, and in a few Government
buildings that central heat is found. Such heat is used only about
two months during the year, the rest of the time there being no need
for it. The native population never have artificial heat in their
homes.
Coal is obtainable in the principal Egyptian towns and sells for
about $7 a ton. Manufactured gas is available in most of the larger
towns, but its cost and that of electrical current exclude their use
for heating purposes except in the homes of the wealthy.
Fuel oil of 0.895 to 0.905 specific gravity: viscosity at 112° F.,
Saybolt Universal, 140 seconds: flash point, Pensky-Martin closed
cup, 180° F. is readily available. There are several large companies
selling oil in Egypt, and competition is very keen. Oil burners for
industrial purposes are used to only a small extent, and there is little
market for automatic oil burners to be used in connection with
\ central heating plants.
UNION OF SOUTH AFRICA
By Edward B. Lawson, Assistant Trade Commissioner, Johannesburg
In the greater part of South Africa the climate is mild and the
heating .# homes is not necessary for more than a couple of months
during the year, and even during that period, July and August,
frequently by the middle of the day the sun has warmed the atmos
phere enough for fires to be unnecessary. The general practice
is to have a fireplace or stove in the living room, and possibly one
bedroom, then when it is necessary the other rooms of the house can
be warmed with portable kerosene, electric or gas heaters. Within
the past few years quite a number of large buildings for apartments
and offices have been erected in Johannesburg, Cape Town, and
Durban, but many of these modern structures have not installed
central heating plants and continue to rely upon fireplaces and
Stoves for heat when necessary. The usual type of detached residence
in South Africa is the bungalow without basement, and having only
four or five rooms, a style which does not lend itself to the installa
tion of central heating plants. In the few instances where heating
Systems have been installed, coal-burning steam plants have been the
most popular. The buildings installing central heat have been
stores, hotels, and apartment houses. A recently established knit
goods factory equipped with central heating is reported as the only
textile factory in South Africa having such facilities.
uel-oil burners are little known in South Africa for either do
mestic or industrial purposes, and to introduce them would involve
* good deal of educational work. The climate is mild, and the peo
Ple of European origin come from countries where the climate is
28
much more severe and where relatively few central heating plants
are employed; they, therefore, are not accustomed to such plants nor
can they be easily convinced of their advantages in a climate so much
milder than that in which they formerly lived. About the only
appeal oil burners for domestic purposes would make would be the
feature of automatic uniform-temperature control. Domestic help.
is cheap and abundant, so the saving of the trouble and labor of
attending to the furnace is not a selling point in South Africa. The
cost of oil as a fuel is almost four times as great as coal, and to over
come this difference there would have to be demonstrated a very
decided advantage in favor of oil-burning equipment. The total.
European population of the three most important cities in South.
Africa is approximately 400,000, and it is only among these that
there is any potential market for oil burners, as central heating is
practically unknown in the rural districts.
Engineering firms having direct contact with the building trade
would be the most satisfactory agents for the introduction of oil
burners. These firms should have sufficient salesmen for covering
the area assigned to them and for calling on prospective customers.
It is also regarded as imperative that ample stocks of replacement
parts be kept on hand, since servicing of plants installed would be
a prime factor in any success attained. The representative should
also have an adequate technical staff to install and service oil burners.
Since the field is virtually unworked and little is known of the ad
vantages of oil burners, a considerable amount of educational work
would be necessary, and the distributor would expect full coopera
"tion and definite sales aid from the manufacturer. There are no.
trade papers where the advertising of oil burners would be particu
larly effective, and any advertising done would have to be in the
daily press.
There are no special taxes assessed on oil burners, but the general
regulations pertaining to fire protection in the various municipali
ties must be observed. These regulations follow the same general
lines as those in effect in many cities of the United States, and it is
believed that equipment designed to come within these requirements
would be approved in South Africa.
Steel storage tanks can be made in South Africa, but a fair share
of the demand is supplied by imported tanks, which are considered
better than those of local manufacture. All other supplies, such as
fire brick, iron piping, and the usual electrical goods necessary for
the installation of oil burners, can be obtained locally. Electrical
appliances are marketed to a very large extent by the light and
power companies. The electricity available in Cape Town is direct
current of 220 and 440 volts, and alternating current, 3 phase, 50.
cycles, at 220 and 380 volts. In Durban the current available is
alternating, 3 phase, 50 cycles, at 100 and 200 volts. In Johannes
burg both direct current at 230 less and 460 volts and alternating cur
rent, 3 phase, 50 cycles, at 200 and 400 volts are available.
Large quantities of coal are mined in the Transvaal and Natal,
the product of the latter mines being considered as superior. Coal
in the cities of the Transvaal, the Orange Free State, and Natal
retails at from $6 to $8 per short ton. In Cape Town and vicinity
29
coal sells at $10 to $15 a ton. Transportation charges are the biggest
factor in the cost of coal, as mine prices are very low. South African
coal is not considered as equal to the better grades of Welsh or Eu
ropean coal, and only the best grades of domestic coal are used for
bunkering ships, exporting, and the manufacture of coke. The
lower grades require special grates to secure proper combustion.
Manufactured gas is available in the principal towns. It averages
480 British thermal units per cubic foot, and in Johannesburg sells
for $0.96 to $1.44 per 1,000 cubic feet. It is used almost entirely
for cooking, it being considered too expensive for industrial pur
poses or central heating. A few small gas-heating units are found
in some of the cities.
Fuel oil of two grades is obtainable in South Africa and is stored
in substantial quantities at Cape Town and Durban, where it is
used chiefly in supplying oil-burning ships. In the Johannesburg
area oil has proved a satisfactory fuel for the mines, but it has not
been used in connection with central heating plants in any section
of the country.
The following are the kinds of oil on the market with their charac
teristics: Borneo oil, specific gravity 0.943; viscosity at 100° F.,
90 seconds (Redwood); flash point, 190° F. (Pensky-Martin closed
cup); Persian oil, specific gravity 0.895; flash point, 100° F.;
(Pensky-Martin closed cup). Fuel oil at Capetown and Durban
sells at about $20 a ton for the lighter grades. In Johannesburg
fuel oil is sold at about $53 a ton, and at this price it is figured that
8250 British thermal units cost $0.01 while with coal some 28,000
British thermal units can be purchased for the same amount. This
makes oil as a fuel about four times as expensive as coal at Johannes
burg, though the difference at Cape Town and Durban, where oil
is cheaper, is not so great.
FAR EAST
AUSTRALIA
By S. R. Peabody, Assistant Trade Commissioner, Melbourne
Climatic conditions in Australia do not encourage any extensive

use of central heating plants, as the climate range is from tropical
to subtropical in Queensland to approximately, that of southern
California in New South Wales, becoming a little cooler in South
Australia, Victoria, and Tasmania. Where heat is necessary, the
heating season is about four months, from May or June to Septem
ber or October. As a rule, homes do not have central heating plants,
nor are they usually built with basements where furnaces may be
installed. Fireplaces, supplemented by gas or electric heaters, are
the most popular form of heating in residences. There are com
paratively few apartment houses in the cities of Australia, the ma;
jority of them being in Sydney, with a few in Melbourne. Many of
them are not heated from a central plant, although the tendency is
to install central heating in the newer buildings. Some office build
ings, stores, and hotels have central heat, but most of them do not.
A greater part of the heating plants installed have been hot-water
systems.
30
The largest demand for oil burners is in industrial plants where

they are used for generating steam. The chief domestic demand
is for installations in large buildings such as hotels and apartment
bouses, it being estimated that there are more than 100 burners of
that kind in operation, while for the heating of residences there
are probably not more than 12 oil burners being used in all Aus
tralia. Seventy-five to eighty per cent of the oil burners sold are
imported from the United States and Great Britain, the remainder
being manufactured locally. Oil burners coming from the United
States have to pay an import duty of 60 per cent ad valorem. The
British oil burner “ Kermode * is the one sold most widely, though
the British product is usually higher in price and is not regarded
as being as efficient for use in connection with central heating plants
as American burners. For industrial use the British burner is con
sidered equally as efficient as the American product. The burners
manufactured in Australia are not considered as efficient as those
imported.
There is an increasing appreciation in Australia of the benefits to
be derived from automatic heat control in large buildings such as
hotels, stores, and apartment houses, and also in the residences of
the wealthy, where central heating plants are installed. Labor con
ditions there are somewhat similar to those in the United States,
and the advantage of automatic oil burners, arising from the fact
they do not have to be tended makes a strong appeal. The market
is limited by the fact that the climate is such that central heating
is not really necessary in small buildings and residences, but coun
terbalancing this to a certain extent is the inclination of the Aus
tralian people to adopt new devices and labor-saving appliances.
Standards of living are fairly high and the outlook of the people,
in general, is not unlike that encountered in the United States.
At the present time practically the only advertising of oil burners
is through trade papers and by posters. Agents selling in the Aus
tralian market receive all necessary advertising matter from the
manufacturer, plus an allowance of 8 to 10 per cent of sales. The
material they expect the manufacturer to supply includes all litera
ture, cuts, cliches, and posters for billboard advertising. Agents
appear to prefer to initiate their own advertising campaign rather
than have it supervised or run by the manufacturer.
Most of the municipalities levy a tax of about $10.50 on oil-burn
ing equipment when it is installed. Installations of such equipment
must also comply with the regulations of the Fire Underwriters
Association of Victoria, which are similar to those in effect in the
United States. The necessary supplies and electrical material for
installing oil burners can be obtained locally. The light and power
Companies generally market electrical appliances.
Most of the Australian cities have direct electric current, while in
the suburbs alternating current is encountered. The following table
shows the characteristics of the current available in the various
cities:
31
ELECTRIC CURRENT AVAILABLE IN AUSTRALIA
|
Locality Kind Voltage Cycles
-
|
|
230 and 460
The most usual fuel in Australia for burning in fireplaces and

stoves is coal. Wood is popular also for that purpose. Coke and
oil are the principal fuels used in central heating plants, with the
latter becoming increasingly popular. Coal sells at about $13.50
per long ton in Melbourne and Sydney, briquettes at about $12, and
coke at about $11.50.
Manufactured gas can be obtained in the principal cities, and that
distributed in Melbourne averages 560 Iłritish thermal units per
cubic foot and sells for $1.70 per 1,000 cubic feet. Its principal use
is for cooking and in small gas heaters.
Fuel oil is rather extensively used in Australia, annual imports
amounting to some 80,000,000 gallons. It is used principally by
ships and factories for generating steam, and to a minor extent in
Diesel engines and industrial furnaces. The characteristics of the
fuel oil sold are as follows: Specific gravity, 0.940; flash point, closed
cup, 185° F.; viscosity at 100° F., Redwood test º seconds; calorific
value, 19,000 British thermal units per pound. Fuel oil sells in Mel
bourne and Sydney at about $18 a ton for the heavy grades and at
about $19 a ton for the light grades.
CHINA
By Jerome Marcs, Office of Commercial Attaché, Shanghai
The cold during the winter months in Shanghai is damp and pene
trating, and occidentals residing there and in other treaty ports in
China employ some sort of artificial heat in their homes for about
five months during the year. About 65 per cent of the houses built
for occupancy by westerners have basements where furnaces may
be installed, and a number of such houses already have central
heating lants, warm air and hot water being the most popular
Systems }. residence. Apartment houses, office buildings, hotels,
and large stores are also generally heated from a cent 'al plant. The
older buildings of those types employ hot water, but the tendency
with new construction has been to install steam systems. There are
reported to be in all of China not more than a half dozen oil burners
used in connection with central heating, and those are in new apart
ment houses or hotel buildings. . -
Further building operations in Shanghai and other treaty ports

will, no doubt, mean an increased demand for fuel-oil burners, and
32
if it can be shown that they are cheaper to operate, there should also
develop some market for them to be installed in older buildings and
residences which now are using coal as a fuel for central heating
plants. In the industrial field there has been little development in
the use of fuel-oil burners.
From the foregoing it can be seen that China at the present time
offers a very small market for fuel-oil burners and one in which a
good deal of educational work will have to be undertaken to develop
a market of any importance. Exports of oil burners and parts from
the United States to China declined from $30,729 in 1928 to $12,577
during 1929.
Fuel-oil burners have to pay an installation tax of about $3, and
must be passed upon by the local fire department. The usual electric
current available is alternating at 110 and 220 volts, 3 phase and 50
cycles. Most of the light and power companies sell electrical
appliances.
Coal is sold at $9 to $10 a ton and is readily available in most
Chinese ports. Coke is sold at about $11 a ton. For central heating
plants and open fireplaces coal is the most popular fuel.
Manufactured gas, averaging 450 British thermal units per cubic
foot, is sold in Shanghai for $1.20 per 1,000 cubic feet.
Fuel oil sells in Chinese ports at $17 to $18.25 a ton and is used
chiefly by oil-burning ships taking on fuel at those ports. The
characteristics of this oil are as follows: (1) Baumé gravity, 27°;
viscosity, Saybolt Universal viscometer at 100°F., 45 seconds; flash
point, Pensky-Martin closed cup, 220° F.; (2) Baumé gravity, 24°;
viscosity, Saybolt Universal viscometer at 100° F., 100 seconds;
flash point, Pensky-Martin closed cup, 225° F.
INDIA
By Norman C. Stow, Assistant Trade Commissioner, Calcutta
Since all of India enjoys a tropical climate there is no demand in

that country for oil burners to be used in connection with central
beating plants. In the industrial field there is beginning to be some
demand for fuel-oil burners in the Bombay district and western
India, where coal is more expensive than around Calcutta. The
industries of India, however, are rather conservative and slow to
adopt new methods. In Calcutta coal of good quality sells for about
$4 a ton and oil at about $20 a ton, making it impossible for the
latter to compete with coal. In Bombay and western India, which
are far removed from the coal fields, coal sells at about $8 a ton and
oil at about $20 a ton, making the relative cost of the two fuels
more nearly equal. A few textile mills in Bombay have installed
fuel-oil burners of British manufacture, and there is some possi
bility of other mills there turning to oil for fuel. Only a very few
industrial burners of American manufacture have been sold. None
are manufactured in India.
It is not believed that advertising would increase sales of oil
burners in India. About the only i. way for the American
manufacturer to enter the market would be by sending salesmen
technically competent to demonstrate the advantages of fuel oil
burning equipment. Even using that method, it is feared that im
33
mediate results would not be very great. The British burners that
have been installed in Bombay were sold by a local firm of British
engineers.
There are no special laws, regulations, or taxes affecting the in
stallation of fuel-oil burners. The supplemental material necessary
for installing such equipment can be obtained locally. Some of the
light and power companies sell electrical appliances, though this is
not the usual practice. At the present time direct electrical cur
rent is in most general use in India, though the power companies
are reported working on the problem of changing their systems to
alternating current. The direct current is usually 220 and 225 volts
for domestic lighting and similar purposes and 450 volts for power
uses. Where alternating current has been installed it is 220 and 400
volts, 3 phase and 50 cycles.
Manufactured gas is available in Bombay and Calcutta and sells
for about $1.45 per 1,000 cubic feet. It is used chiefly for street
lighting purposes, only to a small extent for cooking, and hardly at
all for industrial purposes.
JAPAN
Tây J. H. Ehlers, Acting Commercial Attaché, Tokyo
. During the winter months in Japan the cold is damp and penetrat
ing, making some sort of artificial heat very desirable for at least
four and one-half months during the year. However, very few houses
are built with basements where furnaces could be installed, and it
is only in the new apartment houses, office buildings, hotels, and
stores built for occupancy by westerners that central heating plants
are found. In the older buildings of that type, and even in the
new ones occupied by the Japanese, no central heating systems are
installed. Coal is the most usual fuel for central heating, but in
Japanese homes the most common method of heating is by charcoal
raziers and, to some extent, coal, kerosene, and gas stoves and
electric heaters.
Some oil burners for both domestic and industrial use have been
$old in Japan, and imports of such equipment showed a very decided
increase during 1929. The increase was probably accounted for
almost entirely by oil burners for industrial purposes. The Jap
anese market for oil burners has possibilities of considerable develop
ment in the industrial field, but the demand for domestic burners
will always be small.
Bituminous coal sells at $8 to $10 a ton and anthracite at $17 to
$22. Manufactured gas, running about 3,600 calories per cubic meter,
is sold in Tokio at about $1.10 per 1,000 cubic feet.
Fuel oil is sold in Japanese ports at $17 to $18.25 a ton, its prin
cipal use being for ships’ bunkers. The characteristics of the differ
“nt grades are as follows: Baumé gravity, 22.8°; viscosity, Redwood
Wiscometer at 84° F., 202 seconds, and at 122° F., 83 seconds; flash
Pºint, Pensky-Martin closed cup, 202° F. For the second grade,
Baumé gravity, 17.1°; viscosity, Redwood viscometer at 122° F., 46
*conds; flash point, Pensky-Martin closed cup, 225° F.
-
34
NEW ZEALAND
By Charles F. Kunkel, Assistant Trade Commissioner, Wellington
In New Zealand the climate is quite mild and there is no decided

Variation in temperatures, the average during the winter months of
June, July, and August being about 42° F. and in the summer about
64°. Owing to these climatic conditions, very few houses are
equipped with central heating, though probably 50 per cent of all
residences have basements where furnaces could be installed. The
average householder does not feel that the comfort to be derived
from central heating is sufficient to justify the expense of installing
and operating such a plant. Open fireplaces equipped to burn coal or
wood are used almost universally for heating homes, very few stoves
being encountered. Apartment houses, office buildings, stores, and
hotels built in past years were not, as a rule, equipped with central
heating plants, but now practically all new construction of that
character is utilizing central heat, the most popular being hot-water
systems. The fuels most commonly used for central heating are
coal, some coke, and a little fuel oil.
Oil-burning equipment is being sold in New Zealand only to a
small extent, the chief outlet for such apparatus being among indus
trial plants and for heating systems in large buildings. The New
Zealand Government railways have fuel-oil furnaces in several of
their repair shops, and a number of industrial plants are using that
fuel in their furnaces. The industrial use of oil as a fuel is governed
largely by its cost as compared with coal or other fuels, and plants
near an abundant supply of cheap coal are not inclined to install fuel
oil burning equipment.
Because the demand is small, there are relatively few makes of
oil burners being marketed, and none are manufactured locally.
The main outlet for oil burners to be used with central heating plants
in New Zealand will be for new buildings of the hotel, store, or
apartment-house type. It will not be possible to buildup any market
for such equipment for the heating of private residences, as the need
for the central heating in such dwellings is not great enough to
justify the expense of installing and operating such systems. In
the industrial field there should be a growing demand for oil
burning equipment, as the number of factories is increasing from
year to year.
The installation of fuel-oil-burning equipment in Wellington is
overned by the dangerous goods regulation of 1928, and the license
ees range from $5 to $25 depending upon the amount of oil stored.
The inspection fees are $1.20 for testing the tank and $0.50 for
testing the pipe line. The cities of Auckland and Dunedin have no
regulation or taxes affecting oil-burning equipment. In Christ
church their installation is governed by the city by-laws.
Electrical supplies and other supplemental material necessary for
the installation of oil burners can be obtained locally. The most
usual current available in New Zealanºl is alternating at 230 and 460
volts, 50 cycles, and 3 phase. A majority of the light and power
companies sell electrical appliances with the idea of increasing cur
rent consumption.
35
Coal sells at Wellington for $16 to $18 a ton and coke at about $15.
Coal prices in other cities are a little higher. Coal is the fuel most
usually employed in central heating plants and in open fireplaces.
Manufactured gas, averaging between 450 and 500 British ther
mal units per cubic foot, can be purchased in the principal towns and
is sold on a sliding scale, from approximately $1.75 for 1,000 cubic
feet consumed during one month to $1.40 per 1,000 cubic feet for a
consumption of 150,000 cubic feet during any one month.
Fuel oil is readily available and sells at from $27 to $34 per ton,
depending upon the cost of transportation from point of storage to
consumer. A greater part of the fuel oil imported is sold for indus
trial purposes and has the following characteristics: Specifie gravity
at 60° F., 0.940; viscosity, Redwood No. 1, at 100° F., 81 seconds;
flash point, Pensky-Martin closed cup, 182°F.
Methods similar to those employed in the United States for ad
yertising oil burners have met with very good success in New Zea
land, and it is believed that the manufacturer would be justified in
making some expenditure for advertising in that field, but the market
possibilities are not great enough to make it worth while to spend
any considerable amount. Agents are usually furnished with appro
priate display material and use their own discretion as to the kind
of advertising campaign to be conducted.
THE PHILIPPINE ISLANDS
By G. C. Howard, American Trade Commissioner, Manila
Owing to the tropical climate of the Philippine Islands, there is

no demand there for oil burners to be used in connection with central
heating, as even in the high mountain resorts heating is not neces
sary, and open fires are used more for the pleasure they give than for
any need of artificial heat. In the industrial field there has been
little demand up to the present time for oil-burning equipment, as
evidenced by the fact that our exports of oil burners and parts to
the Philippines are valued at less than $4,000 annually. Possibly
With a further industrial development in the islands some demand
might arise for industrial oil burners, but at the present time the
market can be considered as a negative one.
O
myº
$5.
R ED
"E: 1 0 1930
0, $, U. LIBRAH% S. DEPARTMENT OF COMMERCE
' ... BUREAU of Foreign AND DOMESTIC COMMERCE

3* - WILLIAM L. COOPER, Director
FINANCIAL DEVELOPMENTS IN THE

FAR EAST DURING 1929
HF
105
225
9,600 UNITED STATES
GOVERNMENT PRINTiNG OFFICE
– WASHINGTON : 1930
For sal• by the *Pºintendent of Documents, washington, D. C. -r- - Price 10 cents

-
FOREWORD
In several countries of the Orient 1929 was a difficult financial

year. In others financial reforms were introduced , or forecast.
Silver-using nations felt keenly the decline in the price of silver.
The repercussion from all these factors was evident in the com
mercial field.
Australia experienced and is still experiencing an adverse balance
of trade, with a depletion of oversea balances and a stringency of
foreign exchange that was felt by American exporters. New Zealand
had a relatively good year.
Despite strenuous efforts exerted by the recently established gov
ernment at Nanking, China continued to suffer from costly civil
warfare, which probably consumed the increased revenues accruing
from the new tariffs. Nevertheless, certain progress was made in
the financial rehabilitation of the “middle country.”
After being off the gold standard for 12 years, Japan announced
on November 21, 1929, its early resumption. Bank consolidation
there proceeded under Government encouragement; a new departure
from long-standing practice was made in transferring control of the
yen in foreign exchange from the Government to the Bank of Japan;
and economies were twice effected in the national budget, that for
1930–31 being the first “no-loan * budget since 1907.
India had under way an extensive inquiry into its banking system.
Hong Kong encountered currency difficulties due to the appreciation
of its paper money. Indo-China completed preparations for the
adoption of the gold standard on January 1, 1930. In the Philip
pines a new regulation changing trust-receipt practice was only one
of several banking reforms instituted by the authorities last year.
The following brief survey of financial happenings in the Far East
during 1929, which is based almost entirely ºn reports of field officers
of the Departments of Commerce and of State, was prepared by
Herbert M. Bratter of the Finance and Investment Division. This
division welcomes inquiries on foreign financial matters at all times.
- - WILLIAM L. Cooper,
Pirector, Bureau of Foreign and jomestic Commerce.
MARCH, 1930.
(II)
*A
FINANCIAL DEVELOPMENTS IN THE FAR EAST DURING 1929'
Herbert M. Bratter, Finance and Investment Division
American commerce with the Far East in 1929 consisted of about

$833,000,000 of exports and $1,333,000,000 of imports. The financing
of this $2,000,000,000 merchandise trade was complicated by adverse
conditions in Japan, Australia, and China, the three most important
far eastern buyers of American goods. Japan underwent drastic
retrenchment in preparation for removal of the gold embargo; as a
result of the financial reforms introduced, the yen recovered rapidly
from $0.43 in June to an average for December exceeding $0.489.
but this rise in the yen naturally made difficult Japanese exports to
China and other silver-using countries. Australia, in addition to
budget difficulties, suffered from low wool prices and a general excess
of imports over exports. China had not only to finance heavy mili
tary outlays, but had also to contend with the severe decline in the
price of silver, which dropped from $0.57% in January to $0.46%
on December 30. These and other elements in the far eastern finan
cial situation are touched upon briefly below.
AUSTRALIA
[One pound at par – $ 1.8665]
Heavy Government borrowing abroad for a number of years, an

adverse balance of trade, and high money rates in New York and
London all combined to make 1929 a difficult year for Australia, with
the outlook for 1930 not encouraging.
The year opened with the publication of the report of the British
Conomic Commission (appointed by the British Government at the
request of the Australian Government), which cautioned the Com
monwealth against incurring public debt too freely and against the
§pending of loan moneys as revenue. It declared also that Australia.
had been “mortgaging” the future too freely.
CONTROL OF STATES’ BORROWINGS
The financial agreement bill, authorized by public referendum in

9Yember, 1928, was passed by both houses of Parliament in March.
1929. By its terms the Federal Government makes contributions to
the various States' interest and sinking funds; these contributions
* larger than were those made under the now-replaced per capita
System. The debts of the States are entirely taken over by the Čen
*For a more complete discussion of financial conditionsS iin the various countries of
- - - --> -
º: Far -
East, see Public Finances of Far Eastern Countries, issued by the Bureau §:
°reign and Domestic Commerce in June, 1929, as Trade I’romotion Serios No. 83,
(1)
•)
-
tral Government; and although fresh borrowings by the States are

not precluded, the new arrangement requires that approval be first
secured from the Federal Loan Council, which exists expressly to
unify Federal and State borrowing and to prevent competition for
loans between the Central Government and the States or between the
States themselves.
A minor amendment to this agreement later in the year permitted
the issuance of securities under a State's name. Under the agreement
as originally drawn all State loans were issued by the Commonwealth
and bore the name of the Commonwealth; the new arrangement per
mits the States to issue loans in their own names—still subject, how
ever, to approval by the Federal Loan Council. The object of this
change was to enable a State to take advantage of any preference
which investors may have for the securities of a particular State.
COMMONWEALTH AND STATE FINANCES UNFAVORABLE
Unfavorable conditions as outlined in May by Prime Minister

Bruce before the Federal Loan Council continued throughout the
year. As reported in the Sydney Morning Herald of May 29, 1929,
Mr. Bruce stated:
The situation confronting us to-day is one that can not fail to cause anxiety
to every thinking citizen. Australia has been accustomed in the past to
experience periods of temporary depression, which have been due in the main to
adverse seasonal influences. Our present position is, however, due, I would
suggest, to causes that are more deeply seated, and good soasons alone will not
restore prosperity. The prices of our staple commodities—wool and wheat—
have recently declined. The sale of the surplus products of most of our
other primary industries has become unprofitable, and the portion of our
secondary industries is becoming more and more difficult, owing to ever
increasing competition from overseas. The cumulative effect of all these things
is discernible in the growth of unemployment throughout Australia and in the
increasing complexity of the problems with which we have to contend in
relation to our finance, commerce, industry, and production generally.
There is something wrong somewhere in our national economy. The situ
ation calls for the closest investigation of the causes of our present difficulties.
Ilast year, for the first time since the war, the finances of the Commonwealth
showed a deficit, the amount of the deficit being £2,600,000. For the present
year a large deficit again seems certain, and for the coming year a similar
result is inevitable unless drastic steps are taken to meet the situation. An
examination of the position of the States discloses that * * * two States
are receiving financial assistance from the Commonwealth, and similar assist
ance is now being asked for by another State. * * * It is significant that
the only States which showed substantial surpluses were the two receiving
financial assistance from the Commonwealth.
As anticipated by Prime Minister Bruce, a large deficit (£2,338,

000) was recorded for 1928–29—attributable chiefly to shortage in
customs and excise revenues. The next budget, accordingly, pro
vided increased taxation, including supertaxes on personal and
company incomes. It was drawn up by the Labor government,
which came into office late in the year as a result of the October
elections occasioned by the compulsory-arbitration issue.
One encouraging bit of news in December was the announcement
of the New South Wales budget; taxation there has been reduced,
particularly on business, due largely to a revision of the child
welfare scheme, inaugurated two years ago. In Victoria, however,
increases in stamp duties and amusement taxes were imposed.
3
LOAN FLOTATIONS CURTAILED
Owing to these adverse conditions, the Australian loan council

found it necessary to curtail drastically the public-works programs
of the Central Government and of the several States early in the
year. In August a further all-around cut of 20 per cent was decided
OIl.
In January, 1929, an £8,000,000 5 per cent loan was floated in Lon

don, at 98.” As the subsequent capital stringency abroad prohibited
additional loans, £5,000,000 of 12-month treasury bills were dis
counted in London in September (at an average discount of £6 3s.
and an average yield of £6 11s.). In Australia a 5% per cent loan
totaling £7,600,000 was offered at par in February: by April the issue
had been oversubscribed. That it was oversubscribed was attributed
to a lack of confidence preventing the public front investing in local
enterprises.
To meet the urgent needs which faced it upon assumption of office.
the new Labor government, after consulting the principal bankers,
in November issued in Australia a £10,000,000 5-year 544 per cent
loan at 98, the yield to the investor being £5 14s. 4d. Subscriptions
were slow to come in. Further temporary financing was completed
on November 20 by the issuance in London of £5,000,000 treasury
bills, maturing on June 30, 1930, and yielding £5 11s. The cumu
lative deficit at the end of 1929 was close to $5,000,000, and there
seemed to be but little prospect of its early liquidation or reduction.
EXCHANGE STRINGENCY-GOLD SITUATION
For several reasons exchange transactions have now for some time
been heavily against Australia, and it has become extremely diſlicult
for business men to transfer funds out of the Commonwealth. Aus
tralian banks have been very carefully rationing exchange, allotting
to their regular clients limited drafts on their oversea balances be
cause of the near depletion of these funds. This condition is work
ing a perceptible hardship on American exporters. -
While exchange has been unfavorable to Australia, the gold posi

tion of the country has hardly been affected. Lest the financial
position should become aggravated, and in order to control exchange.
à law was passed in December giving the Federal Treasurer (there
being no central bank) power to take over and control exports of
gold on the recommendation of the Commonwealth Bank. This
step makes it possible for the Government to suspend the gold
standard at will. When first proposed the plan met with con
siderable criticism. The Sydney Morning Herald of IDecember 2
said: “Any legislation tampering with the currency is dangerous.
That is the main reason why the bill amending the Commonwealth
Bank act + 4 + should be rejected.” It is to be noted, how -
ever, that the Government can act only on the advice of the directors
of the Commonwealth Bank, a check which appears satisfactory to
the so-called trading banks.
BANKING PROFITS
Bank profits were slightly lower during 1929. This was reflected
in thei. of the #. of New South Wales. That bank, al
*The last Australian loan placed in New York was floated in May, 1928.
4
though maintaining the 10 per cent dividend, failed to declare the

2% per cent extra dividend that had regularly been declared for
the preceding four years.
Net profits and dividends (including bonuses) distributed by the
14 ordinary banks of the country in 1928 and 1929 were reported in
the Australasian Insurance and Banking Record of December 21, 1929,
as follows: 1928—net profits, £6,404,418; dividends, £5,213,456; pro
portion of dividends to net profits, 81.40 per cent. 1929—net profits,
£6,359,181; dividends, £5,173,562; proportion of dividends to net
profits, 81.32 per cent.
BRITISH INDIA
[One rupee at par = $0.3650 ; average value in 1929, $0.3620]
Perhaps the most noteworthy financial event in India during 1929

was the initiation of a thoroughgoing investigation of native bank
ing by the Indian Banking Inquiry Commission, appointed by the
Government of India to recommend improvements. The commis
sion, consisting of 17 Indian and 4 foreign members, is assisted by
10 local committees in the 9 major Provinces and the centrally ad
ministered areas. The inquiry is directed particularly toward im
proving agricultural finance, but the commission is investigating also
commercial and industrial banking with a view to protecting the
interests of the general public. It hopes, furthermore, to suggest
means for educating an Indian banking personnel adequate for the
needs of the country, and thereby to improve the native banking sys
tem. Testimony before the provincial committee which since June,
1929, has been studying banking conditions in Bombay Presidency
brought out considerable criticism of the Imperial Bank of India
and of the monopoly of foreign-trade financing by the foreign banks,
commonly called “the exchange banks.”
From the mass of materialso far submitted several general con
clusions can be drawn. Throughout the rural districts, but es
pecially in areas liable to famine, the facilities for financing agri
culture are far from satisfactory. The bulk of the finance is sup
plied by the local “soucar,” or native money lender, whose terms
are very exacting, his rate of interest ranging usually from 12 to 24
per cent but in some cases being as high as 36 per cent; and, besides,
the cultivator is bound both to sell his produce and to make his pur
chases through the soucar. Cultivators having little or no credit
with soucars are forced to borrow from Pathan money lenders, who
do business in famine-stricken areas; their terms are notoriously
usurious, and the small villager, once he falls into their power, finds
escape difficult. -
The repeal or drastic modification of the Deccan agriculturists’

relief act of 1879 was strongly advocated on all sides.
FINANCIAL PROBLEMS IN FAMINE AREAS
In areas subject, to famine, it was brought out, the cooperative

movement has made little progress. Many witnesses felt, however,
that the best hope of the Indian ryot ãº lies in a well
regulated cooperative movement. To a limited extent cooperative
banks in urban districts of Bombay Presidency appear to be financing
-
*)
petty traders and artisans; but in the rural districts it is hoped that
some means will be devised to enable the Imperial Bank of India or
some other State-aided institution to help merchants and native
bankers. How this is to be done is not clear. The suggested estab
lishment of branches or agencies, it is said, does not seem quite prac
ticable, since illiteracy is so widespread, since roughly 100 languages
are in use throughout the country, and since the bank undertaking
such financing might be forced to appoint as agents town shroffs, or
brokers, who at present do the bulk of the trade financing. Unlike
the village money lender, the town shroffs are said to be generally
capable and honest: but their charges, especially in the crop-moving
season, are high.
Hoarding is another question that is being studied. While the
habit of buying gold for hoarding is not so prevalent as formerly,
it can not be said that the savings of the ordinary agriculturist are
being taken out of hiding. The attraction of formerly dormant
capital by savings banks and by cash certificates has been successful
only among middle-class salaried workers.
SILVER PRICES AND THE MONEY MARKET
Of late the Indian Government has frequently been blamed for

the decline in the price of silver, which, in December, 1929, reached
the extremely low levels of 1915. It must be borne in mind, how
ever, that sales by the Indian Government do not alone account for
the price decline, since prices are formed by two factors—demand
and supply. The Indian Government, while committed to a policy
of selling its surplus silver, has no desire to see the silver market
depressed. Only if prices remain steady over a considerable period
of time can the Government expect to reduce its silver holdings.
Money generally was easy. The Government's policy of keeping
the Imperial Bank rate at 7 per cent and of contracting the currency
to maintain exchange came in for the criticism that business credit
was thereby unduly restricted, but there was ample money at mod
erate prices to meet crop and other requirements. The share market
was depressed during most of the year despite temporary buoyancy
from July to October. Unsatisfactory conditions, in the cotton and
Other industries caused a downward trend in securities.
Bank clearings in India substantially improved during 1929–
figures for the first 11 months in the 6 principal cities being
20300,000,000 rupees, an increase of 2,420,000,000 rupees over the
Corresponding period of 1928. Clearings in Bombay during Decem
bet were 696,600,000 rupees, an increase of 22.400,000 rupees.
BUDGET SITUATION.—GOVERNMENT LOANS
The budget for 1929–30 is expected to show a deficit, which will

Seriously deplete the revenue reserve fund. Increased taxation ap
parently is inevitable. An increase in long-term borrowings for
development and other purposes is indicated. These loans will pref
Tably be rupee issues; otherwise sterling. The Bombay Presidency’s
ancial position was less satisfactory at the close of 1929 than a
Jºar earlier; no new taxation is proposed, but debt funding and
reorganization of the finances are declared imperative.
June the Government issued two loans totaling 270,000,000
rupees. These loans, as was the case in 1928, offered investors the
6
choice between long-dated and short-dated securities and were made

attractive by permitting subscriptions in treasury bills; moreover,
the 1929 loans introduced provisions for a sinking fund. Of these
two June loans (both 5 per cent issues), 120,000,000 rupees mature
from 1939 to 1944 and 150,000,000 rupees mature in 1939. A con
siderable amount of 1930 and 1931 bonds was received in subscription
to the new loans, but cash subscriptions were disappointing, being
only about half as much as anticipated. As a result, tenders for
treasury bills had to be asked for at the end of July.
CHINA
[I'or value of currencies, see Table 6 at end of this bulletin]
With the necessity of appropriating large portions of its revenues

for the suppression of rebellions, the Nanking government naturally
found little opportunity during 1929 to realize its reconstruction
plans. In fact, funds were lacking for immediate and pressing re
quirements. The Finance Minister made serious efforts to build up
the country’s credit at home and abroad, but was not very successful
because of the difficulties of his task.
As his demands for curtailment of the budget and of military ex
penditures were not heeded, Finance Minister Soong submitted his
resignation to the State Council in August; but, numerous requests
being received urging its nonacceptance, he was finally persuaded to
stay on, following assurances that military expenditure would be
curtailed.
Several ambitious programs were suggested during the year. One
introduced by Minister of Railways Sun Fo, involved an outlay of
$12,500,000,000 (gold) over a period of 50 years. Later, in August,
the minister stated, on the basis of findings of J. J. Mantell and
himself, that China’s immediate railway rehabilitation would re
quire $60,000,000 (silver). Not much progress has been reported on
the reconstruction measures proposed.
TARIFF AUTONOMY AUGMENTS REVENUES
Two important events marked Chinese finances in 1929. The first

was the tariff increase. On February 1, 1929, tariff autonomy be
came an accomplished fact.” On that date the new tariff (now soon
to be raised, it is rumored) went into effect. The result of this step
was a greatly enlarged national income. Collections of maritime
customs revenue (152,760,000 haikwan taels) were about 85 per cent
greater than in 1928; collections at Shanghai were 100 per cent above
those of the previous year. This added income, unfortunately, seems
all to have been required for quelling internal disturbances and for
meeting the expenses of the Nanking government.
Several internal loans were floated on the security of the increased
customs and other revenues, among them the $40,000,000 (silver)
customs-revenue loan issued in June. However, creditors of China
claim that certain earlier foreign loans, formerly secured by likin “
* By treaty arrangement China, was not permitted, prior to this, date, to collect more
than 5 per cent ad yalorem as inſport duty, on foreign goods, Since the tariff confer
ence held in Poiping in 1925–26, however, China has levied surtaxes on imports (2% per
cent on ordinary commodities and 5 per cent on luxury articles). The arrangement
seems never to have been officially approved by the “treaty powers,” but apparently
enjoyed their tacit consent.
* Likin was a Chinese provincial tax collected at inland stations on imports and
articles in transit.
7
revenues, are, by the terms of their indentures, now to rest on the

added customs revenue, since likin has been officially abolished.
(Where likin has disappeared, other taxes have taken its place, par
ticularly the special consumption tax on luxuries and necessities.
Also new cigarette and oil taxes were imposed.)
CHINA INVITES FOREIGN ADVISERS
The year's second development of significance in China's finances

was the work of the Kemmerer commission of American financial
experts, invited by the Chinese Government. The commission in
cluded 21 experts on currency, public debt, taxation, tariffs, budgets,
railroad finance, and banking. In December it completed its task
of investigation and recommendation and departed from China, cer
tain individual members remaining behind as advisers to the Gov
ernment.
The task of the Kemmerer commission was financial reorganiza
tion, which relates to China's huge and complicated public debt and
to its complex currency system. The recommendations of the com
mission—not fully known—were rendered as completed, in the form
of suggested laws. Some of the recommendations already have been
put into force without the origin of the changes being stated by the
Government. At a farewell dinner to Professor Kemmerer in De
cember Finance Minister Soong predicted that the “recommenda
tions made by the commission would be carried out by China.”
It is generally believed in China that one of the recommendations
is the eventual adoption of the gold standard. . However, the like
lihood of that event occurring in the near future is small, since China
has neither the necessary stock of gold nor the credit to raise the
required sum overseas. Should a foreign loan become a possibility,
doubtless some arrangement would first have to be made to settle
foreign claims on account of earlier loans now, in default. The
probability of China's adopting the gold standard is made even more
remote by the recent severe decline in silver prices.
SILVER DECLINE COSTLY TO CHINA
As was mentioned in the section on British India, silver had by

the end of 1929 reached lower levels than at any time since 1915.
The effect of this decline on the cost in China of foreign goods—
some of which the constant warfare has made indispensable—and on
the Government's efforts to meet its foreign obligations and to resume
service on certain previously defaulted foreign gold loans is reflected
in the exchange rates:
TABLE 1.- DECLINE IN CIIINESE ExcIIANGE I) URING 1920'
Average 1 for Decem

ber—
Currency - - ------ ––––
192s 1920
*- - - - - - -- - - - -- - - - - - - - - l - - - - --
U". S. cents U. S. cents

46.05 38.73
(53. 55 53. 68
45.68 3S. 57
'*deral Reserve Board averages.

99964–30 2
8
With Chinese exchange down, it might be expected that China's

exports would quickly improve. That, unfortunately, has not yet
occurred (although it still may take place), and the consequent lack
of export paper has continued to depress the price of silver.
Indian sales of silver have not been entirely to blame for the lower
ing of the price of the metal. What has been equally as important a
factor is the maintenance of world silver production at a high level
for over seven years and a decline in demand from China. Normally,
both China and India are consumers of silver and buyers on balance.
At the beginning of 1929 both countries were sellers on balance.
Moreover, the Japanese yen firmed considerably in 1929, with result
ant sales of silver.
Warfare in China, while temporarily a stimulant to silver prices,
has an adverse effect on the production of wealth in up-country areas,
as has also famine. These factors were particularly evident in 1929
and explain part of the large unabsorbed silver stocks in Shanghai
at the close of the year.
LOAN COMMISSION FORMED
Despite the valiant efforts of Finance Minister T. V. Soong, not

much improvement was Wrought in China's public finances during the
year. Early in 1929 China's foreign creditors were advised that
China would address itself to the problem of its foreign debt. In
October the first meeting was announced of the domestic and foreign
loans commission, to take over, for purposes of debt readjustment,
certain funds appropriated monthly from the additional customs
revenue resulting from the new tariff. The commission includes in
its scope loans of the ministries of railways and of communications.
In September the Government announced arrangements to pay
certain back coupons of the “salt-secured " Anglo-French loan of
1908, the Crisp loan of 1912, and the Hukuang Railway loan of 1911
(so far as the last mentioned is a charge on the revenues of the Salt
Monopoly). Payments out of the additional customs revenue devoted
to servicing foreign and domestic loans were reported in the Shanghai
Shun Pao as follows: May, $1,447,900 (silver); June, $720,500; July,
$4,904,100; August, $15,525,200; September, $382,260.
FAILURE OF DISBANDMENT PROGRAM
A $50,000,000 (silver) “ disbandment loan * was floated early in

1929 with the object of carrying out the troop-disbandment program
authorized by the State council in February. Continued disorder
made disbandment impossible. On August 20 the Government
authorized the issue of another $70,000,000 (silver) of military re
organization and disbandment bonds. This loan was poorly sup
ported by the Provinces. Moreover, as disorder continued, the
Central Government was called upon to quell uprisings several times
during the year, with the result that most of the money raised by the
sale of disbandment bonds went for various other military expendi
tures. As a result, the public lost interest in new Government loans.
Commercial and banking circles, although they had shown themselves.
willing in 1929 to support loans for constructive purposes, “withheld
support of issues which, it has become apparent, were destined to be
diverted from their original objects,” according to the China Monthly
Trade Report of January 1, 1930.
9
In addition to the disbandment bonds, China in 1929 raised a

$45,000,000 currency loan, a $10,000,000 famine-relief loan, $24,000,000
of rolled tobacco tax treasury notes, and $40,000,000 customs Treasury
notes (all amounts stated in silver). China's internal debt was un
officially estimated to be as follows on January 1, 1930: Contracted
by Peiping governments, $201,304,860 (silver); contracted by Nan
king, $343,362,662 (silver).
ABOLITION OF EXTRATERRITORIALITY
The long-promised endeavor on China's part to abolish extra

territoriality" was crystallized in the following announcement of
the State council dated December 28, 1929:
For the purpose of restoring her [China's] inherent jurisdictional sovereignty,
it is hereby decided and declared that on and after the first day of the first
month of the nineteenth year of the Republic [January 1, 1930 all foreign
nationals in the territory of China who are now enjoying extraterritorial
privileges shall abide by the laws, ordinances, and regulations duly promul
gated by the central and local governments of China.
The leading foreign powers, while not agreeing to the abolition
of “extrality” on January 1, 1930, expressed agreement in principle
with the above mandate and consider the process of abolition of
“extrality” to date from January 1, 1930.
A number of new laws were prepared in 1929 in anticipation of
China's announcement that extraterritoriality would soon end.
Among the laws and regulations approved and put into effect were
One governing Chinese chambers of commerce and trade-unions, mak
ing it possible for business interests to become legally associated; a
stock-exchange law; and a law governing the issuance of public
bonds. The ministry of finance also put into effect various regula
tions concerning local finances; the printing and transference of
bank notes and the conduct of banking institutions; and regulations
dealing with the public accounts and the taxation of individuals and
commercial enterprises.
BANKING DEVELOPMENTS-NEW AMERICAN INVESTMENTS
During the year several new branches were opened by the Central
Bank of China, which has been made a depository for Government
funds. The Central Bank, it will be recalled, was established late in
1928. Civil war and economic instability have made its task difficult.
and its notes have fluctuated widely.
On November 1, 1929, the semiofficial Manufacturers Bank of China
held its first shareholders’ meeting. The bank, which has a capitali
Žation of $20,000,000 (silver) ($5,000,000 paid up), is designed to
foster industry. Two-fifths of the shares are held by the Government.
During the year the Government mint at Shanghai was completed.
the Nanking mint becoming a branch mint. The new Shanghai mint
has a daily coinage capacity of $500,000 (silver), and it is said oper
ations will commence in a few months.
American investments in China were increased through the acqui
sition of the Shanghai municipal electricity department by an Ameri
ºn company, at a cost of 81,000,000 taels. An advance of $1,000,000
silver) to the China National Aviation Corporation was made by
*n American concern.
*Under cxtraterritoriality, treaty-power citizens resident in China are not subject to
Chines. law but to the laws of their respective countries.
10
DIFFICULTIES IN MANCHURIA
Manchuria experienced currency difficulties in 1929 not only

through the depreciation of silver, but also through the continued
emission of large amounts of the irredeemable paper fengpiao in
Mukden, tiao in Kirin, and Harbin dollars in Heilungkiang. It has
been customary for the three provincial governments of Manchuria
each year to purchase large quantities of soya beans (Manchuria's
chief export crop) with paper money and then export the beans for
gold, financing themselves with the profits thus obtained. This con
tinued addition to the currency has naturally brought on severe
depreciation. Toward the middle of the year business men began to
refuse the paper money entirely. The Mukden government was
forced to issue silver-secured paper currency to a total of about $40,
000,000 Mexican. In Harbin large amounts of paper currency were
canceled officially; late in the year an order was issued calling for
the turning in of old bank notes by December 20 and for their re
placement by new notes carrying the seal of the civil administrator.
Contributing to the difficulties was the customary hand-to-mouth
policy followed in Government finances. This left the authorities
unprepared for the expenditures incidental to the costly Sino-Russian
dispute; the Government had to borrow from the banks, which, con
sequently, were unable to extend necessary financial assistance to
business houses. Money continued extremely tight, interest rates were
unusually high, and increased taxes put a heavy drain on the public.
HIGHER LIVING COSTS ABSORBED
Frequently in recent years China, has surprised the world by an

ability quickly to accommodate itself to new conditions. This has
proven to be the case with business and the new tariff. A gradual
adjustment in consumers’ ideas to the rising prices has been going
on. This increase in prices has been due not merely to higher import
duties but also to heavier internal taxation. How far this capacity
to absorb added burdens will extend remains to be seen, especially
since the drop in silver is sure to affect the purchasing power of those
whose income is measured in silver.
FRENCH INDO-CHINA
[At the beginning of 1930 the piaster was stabilized at 1 piaster = 10 francs = approxi
mately $0.3018)
The year in French Indo-China was marked by a steady decline in

the piaster from 49 cents on January 1 to 38% cents on December 31.
Public finances were in good shape, budget receipts to November
being 31,820,000 piasters more than the 79,558,000 piasters estimated
for the period. The department of public works proceeded with an
extensive program of road building, irrigation, and general improve
ment.
Indo-China in 1929 completed preparations for the adoption of the
gold standard at the beginning of 1930. Rumors of the proposed
action were reputed to have had an adverse effect on silver prices.
While the adoption of the gold standard there might have some de
pressing effect on silver prices, the adverse influence can be quite
readily overestimated. Silver coins will no doubt continue to circulate
11
in the colony; and as, moreover, a 25 per cent silver reserve was
recommended in connection with the contemplated change, no great
exodus of silver is likely. Indo-China is not a very important con
sumer of silver; E. Kann, writing in the North China Daily News
of December 2, 1929, pointed out that, at the present rate of silver
production, its annual consumption of Some 10,000,000 ounces is pro
duced by the world in about 12 days.
Within the colony the likelihood of the currency being linked to
the franc occasioned a brighter outlook at the end of 1929, despite
disappointment in the size of the rice crop.
HONG KONG
[The average value of the Hong Kong dollar * in 1929 was $0.4717 ; there is no par of
exchange, the rate fluctuating with the price of silver]
Throughout 1929 the Hong Kong dollar" was at a premium com

pared with the Mexican and British trade dollars, on which it is
based. The premium increased from 8 or 9 per cent in January to
about 15 per cent in July. The position at the close of the year
may be seen from the following exchange quotations of the Federal
Reserve Board.
TABLE 2.-RELATIVE Exch.ANGE Positions of HoNg Kong AND CHINESE DOLLAIts
: Average i t º
r “par ransiers
Currency value in on 1)ec. 31,
1929 1 . 1929 2
U. S. cents U. S. cent;
Hong Kong paper dollar---------------------------------------------------- - - - - 41.58 10. 7142
Yuan silverdollar--------------------------------------------------------------- - 41.42 36. 916t;
See Table 6, note 2, at end of this bulletin. -_ --
*Federal Reserve Board quotations of buying rates in New York for cable transfers.
The “normal” premium on the Hong Kong paper dollar is due

to the greater demand for it. While Hong Kong paper dollars,
British silver dollars,' and Mexican silver dollars have been legal
tender in Hong Kong, only bank notes and checks were acceptable
until recently for the payment of taxes and for business purposes in
neral. Moreover, foreign business is transacted entirely in the
ong Kong paper dollar, which is the dollar quoted in exchange
rates on Hong Kong. Another reason for the preference for Hong
Kong paper money as against silver coins is the fact that money
changers make a small profit on silver coins which they can not
make on paper money. The foregoing are all normal factors.
PARITY ESTABLISHED BETWEEN PAPER AND SILVER
Recently currency changes in China have greated a demand on

the mainland for the paper money of Hong Kong, more stable in
value than the Chinese coins and more readily transported from
place to place in times of disorder. The fact that during the year
hº Kong dollars
of th
are bank notes issued by three private banks of issue under the
jºiollars
ewhere.
are minted in England and India for use in IIong Kong and
12
bank notes in Canton were convertible into silver led to the expor
tation of such silver to Hong Kong, for safekeeping and for invest
ment in the relatively more valuable paper money there. This tended
to widen the spread between the Hong Kong paper dollar and silver.
The decline in silver affected exchange in both Hong Kong and
China. During the first nine months of 1929 the Hong Kong dollar
did not fall so rapidly as did the Chinese yuan dollar; but the
former depreciated greatly in October, and the relative positions of
the two at the close of the year were about the same as at the
beginning. This partial readjustment in favor of the yuan dollar
was due to the decision in Hong Kong (announced in the China
Express and Telegraph of November 7) that the British silver
dollar circulate on a parity with IIong Kong notes, a decision made
at the request of the bankers' association and other local organ
izations.
NOTE CIRCULATION
The mere placing of silver and paper on a parity did not solve
the currency difficulties. It was stated that some banks refused to
accept silver dollars for deposit, while one bank was reported to
have paid out a huge sum to a client in silver dollar coins. The Hong
Kong & Shanghai Banking Corporation refuted the criticism of
Chinese bankers that the note-issuing banks in Hong Kong had failed
to increase their circulation as rapidly as the growth of trade de
manded. The bank stated that it had increased its note circulation
25 per cent in 25 years, free expansion of the note issue being ham
pered by a Government note-issue tax of 1 per cent.
The arrival of British silver dollars from London eased the situ
ation toward the end of the year, the interbank selling rate ap
proaching parity with the prevailing silver rate. Finance and Com
merce of December 25, 1929, gave the following statistics on the note
circulation of the three private banks of issue in Hong Kong as of
November 30.
TAIti.F. 3.--NOTE CIRCULATION OF BANKS OF Issue. IN HONG IKONG

[In Hong Kong dollars and pounds sterling]
Note circula
Bank tion on Nov. RoServes
30, 1929 |
Chartered Bank....! $16,626.344

|
sº
a
jº.
,236,000.
Securities deposited with Crown agents valued
Hong Kong Bank---j 52, 322, 100 Species, $34,000,000. Securities deposited with Crown agents and
| , Straits Settlements government valued at £2,007,959.
Mercantile Bank.--- 1, 881,945 Speciº; $600,000. Securities deposited with Crown agents valued
at £180,000.
- - --- - -
- -- - - - - - - -- -- - - - - - - -
JAPAN
[One yen at par = $0.4985; average value in 1929, $0.4610]
Financially Japan will remember 1929 as the year when lifting of

the 12-year gold embargo was finally made possible. That the yen
should return to a gold basis was very desirable to all the world, but
that stabilization should be effected at par was of importance only to
the Japanese.
13
The return to the gold standard was of commercial significance

also, as the island empire is now largely dependent upon foreign trade
for the welfare of its present economic structures. Resumption of
the free movement of gold again has brought into play direct and
practically unobstructed contact between Japanese and occidental
price levels and money markets. The removal of the embargo was
officially announced by imperial ordinance on November 21, 1929, and
made effective on January 11, 1930.
BUDGETS TWICE REDUCED
Removal of the gold embargo was an essential part of the program

of the Minseito party, which came into power on July 2. A part of
the “removal * program was the retrenchment policy of the new
government. This involved a reduction in the national, prefectural,
and local budgets.
Having already cut down the working budgets for 1929–30 (in
herited from the preceding Seiyukai government), the Minseito gov
ernment, in announcing its plans for the 1930–31 budget last Novem
ber, showed estimated savings of 9.3 per cent compared with the
Seiyukai budget and of 4.3 per cent compared with its own working
budget for 1929–30. The budget for 1930–31, according to press re
ports, fixes expenditures at 1,608,776,000 yen; of this sum, about
1,233,644,000 yen is for ordinary and 375,131,000 yen for extraordi
nary expenditures. Ordinary revenues total 1,525,141,000 yen and
extraordinary revenues 83,635,000 yen, which latter figure includes
32.704,000 yen of surplus brought forward.
Retrenchment has been achieved through reductions totaling 68,
039,000 yen and postponements of 57,426,000 yen. The German repa
rations payment of 6,300,000 yen—appropriated for new enterprises
in the Seiyukai budget—has now been ear-marked for sinking-fund
purposes.
. The 1930–31 budget as announced is unusual in that, for the first
time since 1907, no bond issue is counted as revenue. There have
been, in fact, only seven J apanese budgets where bond issues have
been eliminated; even the 1907 budget depended on short-term financ
ing, which the present budget does not contemplate. The budget,
however, fails to reduce taxes. -
GOVERNMENT CAMPAIGNS FOR ECONOMY
With removal of the gold embargo becoming more certain, the

yen, which had declined from an average of $0.4505 for January,
1929, to an average of $0.4388 for June (during which month it
Went even lower than that figure), in July commenced to recover
and by December 31 was quoted at $0.4904. (Paris $0.4985.) From
t e beginning of July the Minseito government has been preaching
*conomy to the people and by lectures and other forms of propaganda
has urged the restriction of imports and the substitution of domestic
products wherever possible. For example, the Ministry of Railways
Circulated among its various departments and bureaus a list of sev
eral hundred articles which, although then being imported, could
and would have to be bought from Japanese sources.
14
The “use-home-goods” campaign has been deemed most essential

by the authorities in view of the appreciating purchasing power of
the yen in international trade; the natural tendency would be to in
crease imports. In one way the continuance of an adverse balance
of trade after the removal of the gold embargo might not be wholly
disadvantageous; for it would tend to draw out of Japan a certain
amount of gold for the settlement of balances. To that extent the
currency could be expected to contract, causing prices to come down—
an object at present urged both in Japan and abroad (provided there
is no subsidy from the Government similar to the 1927 “special ad
vances”).
One of the favorable changes noted during 1929 was a substantial
reduction in the traditional excess of visible imports over visible
exports. That excess, up to December 10, 1929, was only 58,490,000
yen for Japan proper, as compared with 224,359,000 yen during 1928.*
CHANGE IN GOVERNMENT EXCHANGE POLICY
With the announcement of the approaching removal of the gold

embargo, the Government declared its intention simultaneously to
withdraw from regulation of foreign-exchange transactions. As is
well known, the Government, ever since 1880, has endeavored to con
trol foreign exchange through the semiofficial Yokohama Specie
Bank. For this purpose the Government has held gold and gold
investments in the oversea offices of the Specie Bank, which acts as
fiscal agent abroad for the Japanese Government. The new policy is
to sell all Government gold holdings overseas to the Bank of Japan,
turning over to that bank the direction of the Yokohama Specie
Bank’s exchange policy. To meet its own oversea requirements the
Government now purchases foreign exchange from the exchange
banks in Japan, just as does any private concern.
Another event of the year in governmental finance was the issuance
by the treasury on October 28 of the first exchequer notes since 1915.
Of the total of 75,000,000 yen, 40,000,000 yen was subscribed by the
Deposits Bureau and the remainder underwritten by the Bank of
Japan for sale to the public.
BANKING RETURNS
Japanese banking during 1929 continued to be marked by plentiful

money and by caution in making advances. Trust companies, which
found themselves flooded with cash “deposits,” encountered increas
ing difficulty in profitably investing their funds. As a measure of
retrenchment the finance minister urged the “first-class” banks to re
duce their dividends, but they pointed out that some banks had not
been similarly requested and that Japan’s credit would suffer were
they to do so.
n several occasions the Bank of Japan sold Government bonds
from its portfolio with the object of absorbing surplus money. The
bank's note issue remained substantially the same as during 1928.
Its emergency advances outstanding since the 1927 crisis were only
moderately reduced, hence some inflation from that source still
exists.
* Recent
during 1929press
was reports stateyen,
150,000,000 thatcompared
the adverse
with visible balance
3:35,000,000 yenforin the whole Empire
1928. p
15
A progressive decline of profits marked Japanese banking during

the first six months of 1929; the statements of the “Dig Five” showed
individual declines ranging from 57,000 yen to 582,000 yen.” Deposits
in all banks at the end of November were 12,173,334,000 yen, a slight
increase over November, 1928. Advances at the end of November
totaled 11,126,538,000 yen, as compared with 11,362,862,000 yen a
year earlier.” Bank clearings showed practically no change in num
ber of clearances, although in value they were smaller; for example,
the total for all clearing houses in Japan was 4,674,365,000 yen for
November, 1929, as against 5,423,331,000 yen for November, 1928.
TRUST-COMPANY GROWTH-POSTAL SAVINGS
Trust-company business continued to grow in 1929. At the end of

January money in trust totaled 1,026,396,000 yen and securities in
trust 187,294,000 yen. Py the end of November, according to Mone
tary Statistics, the figures were 1,168,883,000 yen and 198,495,000 yen,
respectively. Total assets and liabilities of the trust companies rose
during the same period from 1,279.369,000 yen to 1,437,899,000 yen.
Toward the close of 1929 there became evident a tendency to with
draw funds which had been placed with the trust companies after the
1927 banking panic. This reversal of the flow of funds is possibly
accounted for by the then approaching removal of the gold embargo.
As in preceding years, postal-savings deposits continued to grow
during 1929; for the first time they exceeded 2,000,000,000 yen. The
total at the end of November was 2,045,000,000 yen, as against
1,751,035,000 yen a year_earlier. The postal-sayings system is most
important in Japan, offering, as it does, to the poorest citizen a
highly diversified banking service. As a consequence, over one-half
of the population participate in the system, and their savings, even
tually placed with the Deposits Bureau, form a very important part
of Japan's public finances.
NETHERLAND EAST INDIES
[One florin at par = $0.4020; average value in 1929, $0.4006]
There were no important financial events during 1929 in the

Netherland East Indies.
A report in the China Express and Tele
graph (London) of November 28 stated that the Government was
able to balance the 1930 budget only with difficulty. While resort to
additional taxation did not prove necessary, it is pointed out that a
reduction, particularly in the extra percentages, on the income and
“ompany taxes, is out of the question unless conditions improve.
The Java Bank rate was raised in February from the usual 4 per
cent to 4% per cent and in July to 5%, which rate continued to the
end of the year. The note circulation at the close of 1929 was
288,000,000 florins, showing a decline of 22,000.000 florins during
-
- -- -- - -- - - - -- - ---- - - --- -
T-- —— — — — — — —- - - -
"A trad • ** tin (No. 653) on the IBig Five in Japanese Banking was
published i.º.º.º.
§tainable from tº Superintendent
and Domestic Commerce during 1929. Copies are
of I)ocuments, l’. S. ( ; overnmºs nt Printing Oflico,
Yº. iſ...". ºi"ianks are not yet available.

Tokyo Čirinºs: reported dioposits of 2,086,428,000
The associated banks of the
yen on I)ecember 31, 1929, a
4,771,000 yen during the month; I,0ans on I)ecember 31
decline of totaled 2,178,149,000
§: An increas ºf 135,506,000 yen [9]. the month. Cash hold at the end of I)econnber
"s 2005i food ºn ; àºjīāč from Novemrber of 91,574,000 yen.
16
the year. This change reflected the marked slowing up in domestic

trading which occurred during the last half of 1929, caused by price
declines, by a slackening in demand for export commodities, and by
the drought in Java, which occasioned large imports of rice. As a
result, Java's favorable trade balance during the first nine months
of the year was only 25,000,000 florins, compared with 155,000,000
florins during the like period of 1928.
The share market, in sympathy with falling commodity prices.
declined gradually during the third quarter of 1929, with severe
depression following the break in the New York stock market.
NEW ZEALAND
[One pound at par ==$4.8665]
Early in 1929 it was announced that New Zealand’s budget for the
fiscal year ending June 30 would show a deficit. In June Prime
Minister Ward's analysis of the Dominion's financial position gave
revenues as £23,600,000, and expenditures as £24,177,000, with a
resultant deficit of £577,000.
During the parliamentary session recently closed repeated em
phasis was placed on the necessity for conserving public finances.
The imposition of extra taxation, as provided for in the budget, is
expected to have the effect of balancing the public accounts for the
current financial year. With the heavy provision that must be made
for unemployment and with the uncertainty as to the Government’s
liabilities resulting from the recent earthquake disaster, it is the
concensus of opinion that the Treasury will have difficulty in keeping
expenditures within receipts.
BANKING RETURNS
Reports of the banks operating in New Zealand for the quarter

ended December 31 shows an excess of advances over deposits of
£451,000, compared with an excess of deposits over advances of
£3,560,000 for the corresponding quarter of 1928. The altered finan
cial situation of the public is due to the fall in prices of exported
produce and to the increased importations. Comparative figures for
the last six years are as follows:
TABLE 4.—NEw ZEALAND BANK DEPosits, ADVANCEs, AND Discol’NTs, I) EUEMBER
QUARTER, 1924–1929
Teposits I. fad
December - - Advances, *.*.*.*| Discounts,
quarter— | tºi" | W ºr total
Demand Time Total eposits
-- - - - - - - ----------- -
i
- - - - - - -----
|
-
- - - --- - – —- ---
––
£24,777,000 | f:19,899,000 | E44,676,000 £45, 936,000 £1,200,000 £1,709,000
25, 189,000 20,841,000 46,030,000 48,554,000 2, 524,000 1,927,000
23, 131,000 | 21, 106,000 || 14, 237,000 51,273,000 7,036,000 1,877,000
21,438,000 24, 263,000 ! 45,701,000 49, 760,000 1,059,000 | '', 672,000
22, 180,000 | 29,481,000 51, 661,000 48, 101,000 1 3, 560,000 i, 200,000
22,729,000 : 30,628,000 53,357,000 53, 808,000 451,000 1, 195,000
--------— — — — — — — —- - - - - - - – -- - -
1 Excess of deposits.
17
All the banks shared in the increase in demand deposits, the Union
Bank and the Bank of New South Wales showing the greatest rela
tive increase in December; but all did not share in the fixed-deposits
gain, the figures of the Union Bank showing a decrease of £154,000
in this item for the month.
. The increase in deposits, however, is overshadowed by the expan
Šion, in advances—#5,707,000 over the closing quarter of 1928, when
the banks were obliged to raise the overdraft rate to check imports.
Discounts were in accord with the trend of the past few years.
PHILIPPINE ISLANDS
[One peso at par = $0.50)
From the standpoint of bank regulation, 1929 was an important

i. in the Philippines. Numerous changes were introduced in the
anking law providing for closer Government control of trusts,
trust companies, and other financial institutions. The innovations
were outlined by the Philippine bank commissioner in the following
* submitted to the United States trade commissioner in
anila:
Due to a rather serious situation which had been developing for some time
in the case of an important financial institution of these islands, it became
clear to former Governor General Stimson, during the latter part of 1928, that
a more thoroughgoing system of bank supervision and inspection was needed
here than was then provided for under the existing laws. The call for the
special session of the legislature to meet in February, 1929, provided an op
portunity for securing the needed legislation. A bill was passed creating a
new bureau, known as the bureau of banking, the sole duty of which was to
be that of supervising and inspecting all banking institutions and building and
loan associations operating in the Philippine Islands. The bank commissioner
was clothed with sufficient powers to intervene in the affairs of any such insti
tution should intervention be considered necessary for the protection of de
p0sitors and creditors. The law provides that for a limited period the Governor
General might employ a specially trained person to serve as bank commissioner
for the purpose of organizing the new bureau and laying down policies which
should govern its operations.
During the short time the bureau has been in existence a number of im
portant policies have been laid down which will make for safer banking in the
islands. I refer particularly to the regulations regarding financial statements,
indebtedness of borrowers, and the practice of releasing merchandise on trust
receipts. Also under the new arrangement it will probably be possible to
inspect all banks and building and loan associations at least twice a year,
Whereas formerly they were inspected only once a year. It is obvious that more
frequent inspections will constitute better protection to depositors and creditors.
During the last regular session of the legislature the general banking laws
of the islands—other than those dealing with the supervision and inspection
of banks—were practically rewritten. The laws were liberalized in some
Tespects and tightened up in others in order to bring them more in line with
up-tº-date banking legislation in other countries. Among the more important
modifications effected were the following:
(a) The provisions governing savings and mortgage banks were so liberal
ized as to encourage the establishment of such institutions in the
islands. There are none at present.
(b) All commercial banking institutions were permitted to make real
estate loans within reasonable limits. w
(c) All commercial banking institutions were permitted to do a trust busi
ness and all trust corporations were permitted to do a commercial
banking business by Complying with all relevant provisions of the
law.
18
(d) All banks were required to set up a reserve against savings deposits.
thus correcting a serious defect in the old law.
(e) All institutions doing a trust business were required to deposit prime
government securities with the insular treasurer to assure the proper
execution of trusts committed to them.
(f) All banking institutions were forbidden to enter into contracts of
guaranty and suretyship not falling within the usual scope of their
activities. Experience in the islands showed this provision to be
highly necessary.
(g) Building and loan associations, among other things, were required to
set up a reserve against losses in order to protect their capital against
impairment.
While in the foregoing legislation considerable powers were placed in the
hands of the bank commissioner, the abuse of that official's authority was
guarded against by making all his opinions, decisions, rulings and regulations
appealable to the secretary of finance and the Governor General.
Additional legislation passed in December removed the prohibition
on the use of the word “national” in the names of local branches of
national banks organized under the laws of the United States. Also,
a bill was presented authorizing the Philippine National Bank to loan
any part of its capital and surplus to cooperative marketing associa
tions; this bill was designed to amplify the bank's authority in that
direction.
CHANGE IN TRUST-RECEIPT PRACTICE
The announcement of the Philippine bank commissioner in Novem

ber, changing the trust-receipt practice, occasioned a stir amon
Philippine banks but seems to have caused no complaint in the *...i
States. The object of the ruling was to eliminate what had appar
ently become bad banking practice. Local banks had been in the
habit of releasing merchandise (received under D/P instructions)
on trust receipt without specifying such advances on their balance
sheets or otherwise reporting them to the Government. The com
missioner felt that banks should not assume such liabilities beyond a
fixed percentage of their capital, as the advance of merchandise on
trust receipt is in no essential way different from a direct loan by the
bank to its customer; it is entirely a local matter, concerning only
the bank and its local client.
Under the new ruling banks can not release goods on trust
receipt without authority from the originating bank abroad. As
originating banks are not inclined to grant such authority—unless
they maintain branches in the Philippines—local banks will be
obliged virtually to discontinue trust-receipt arrangements and to
substitute direct loans. In any case, banks will hereafter be required
to report to the authorities the amount of their trust-receipt ad
vances, which will be held within definite limits.
BANKING RETURNS-BUDGET ESTIMATES
During 1929 the banks had a fairly profitable year, and the end of
December found them in good shape. Exchange was somewhat
irregular during the first three months, but normal the remainder of
the year. There was plenty of investment capital available, in
vestors in the latter part of the year showing preference for mort
gages and for securities listed on the New York Stock exchanges.
The trade balance for the year was about 30,000,000 pesos in favor
of the islands.
19
Preliminary estimates place Government revenue for 1929 at

80,360,000 pesos and expenditures at 80,200,000 pesos. The budget
for 1930 calls for expenditures aggregating 77,600,000 pesos.
SIAM
IOne baht (formerly talled tical) at par - $0.4424; average value in 1929, approxi
mately par]
The year passed uneventfully in Siam, with a moderate surplus

anticipated in the budget. During 1929 the Government encouraged
the organization of cooperative societies to protect the rice grower
from the money lender, and 107 such societies were formed.
The ministry of finance issued regulations to be complied with by
applicants for authorization to establish banks, credits fonciers,
savings banks, and savings institutions other than savings banks. The
regulations applied to only those institutions domiciled in Siam.
Banks must have as a majority of their directors Siamese subjects,
must submit semiannual reports, and Imust have a paid-up capital of
at least 200,000 bahts. Foreign banks desiring to establish or keep up
a branch in Siam must give such branch a paid-up capital of at
least 200,000 bahts, must not engage in trade or business other than
that incidental to banking, and must not own immovable property
for longer than nine years—except such as is necessary for carrying
on the banking business or such property as they already hold.
Foreign banks must furnish the ministry of finance copies of ac
counts periodically submitted to their shareholders.
STRAITS SETTLEMENTS
[One Straits dollar 11 at par = $0.5678; average value in 1929, $0.5601 |
During the summer months exchange in the Straits Settlemei) is was

depressed by the government of Penang's loan-redemption operations,
but recovered later. Money rates in general were normal, except
for brief periods when high money in New York and London made
itself felt in Singapore.
In November revised estimates placed revenue for the fiscal year
ending December 31, 1929, at $79,400,000 Straits currency, omitting
the railway revenue, as compared with an original estimate of
$70,000,000 Straits. This was only $4,000,000 less than the record
revenue of 1927, and exceeded that of 1928 by over $5,000,000. The
total expenditure during 1929 (excluding railway expenditure)
Would, it was estimated, amount to about $89,000,000. Thus, a deficit
of less than $10,000,000 was expected, as compared with the budgeted
deficit of $26,000,000.
METALLIC CIRCULATION
Up to July 29, 1929, no additions had been recorded in the metallic

currency in circulation, the following figures of September 30, 1928,
applying. They do not include subsidiary coin held by the Treasury.
*Also called “Singapore dollar.”
Straits dollars
Dollars and half dollars----------------------------- 6,031, 379
Subsidiary silver coin-------------------------------- 10, 598,658
Nickel 5-cent pieces ---- 172, 586
Copper coin -- - 2,472,519
Total----------------------------------------- 19, 275, 142

The above represents about 14 per cent of the total currency
circulation on that date. All coins except dollars and half dollars
are only limited legal tender.
There is a steady demand for small silver and gold coins of foreign
issue. Such coins are not used in trade, except at banks and exchange
brokerage houses, but are desired for ornamental purposes; men use
them for coat buttons and women make them up into necklaces. It
is very common to see American $10 gold pieces thus employed, and
the practice results in a small premium on American gold coins at
the holiday seasons.
CURRENCY NOTE CIRCULATION
Currency notes in circulation on July 1, 1929, aggregated

$107,967,787 Straits; this compares with a similar circulation of
$115,848,258 on September 1, 1928. This note circulation is amply
secured by a currency guaranty fund, as follows:
Straits dollars
Liquid portion (July 1, 1929) ––––––––––––––––––––––– 64,019, 220
Investment portion (stock-exchange quotations of May
31, 1929)--------------------------------------- S9, 246, OSO
Cash balance shown by currency commissioner's
account July 1, 1929–----------------------------- 84, 764
Total---------------------------------------- 153, 350,064
APPENDIX
FAR EASTERN SECURITIES PUBLICLY OFFERED IN UNITED

STATES DURING 1929
During 1929 public offerings in the United States of corporate and

governmental issues from foreign countries and United States terri
tories in the Far East showed a marked decline as compared with
1928. Issues publicly floated for Philippine and Hawaiian govern
ments and corporations showed an increase from $5,685,000 to $6,520,
000, but issues similarly offered for far eastern countries dropped
from $154,836,880 in 1928 to only $11,450,000 in 1929. The latter
figure represents only one issue—that of the Toho Electric Power Co.
There was also a $25,000,000 credit recently extended by a group of
American bankers to the Yokohoma Specie Bank, to facilitate re
moval of the gold embargo by the Japanese Government. This being
a privately issued credit, it is not included in Table 5 below.
The marked decline in far eastern issues offered is attributed to
the prohibitive rates prevailing in the New York money market. But
for that condition it is quite likely that Australia would have at
tempted to offer Government securities to relieve the stringency in
foreign exchange. Such offerings, however, were rendered doubly
unlikely by the condition of Australian public finances described
in Commerce Reports, January 28, 1929 (p. 216), and May 20, 1929
(p. 499).
SUMMARY OF THE 1928 AND 1929 OFF::RINGS
The par values of far eastern (foreign and United States terri
torial) securities offered in the United States during 1928 and 1929
are shown in the following table. Issues in foreign currencies have
been converted to United States gold for convenience of comparison.
TABLE 5–I’AR VALUE of FAR EASTERN SEcurities PUBill," Y ºf fººd IN THE
|UNITED STATES DUI:ING 1928 ANI, 1929
|
Country of issue 1928 i 1929
-
-- - --- ---- - - -- - - - ----- -
-—
Australia: |
*rnment.--------------------------------------------------------- | $56, 509, nº) --------------
à03n: - :
w government-guaranteed |
- - - - - - - - - - - - - - ----- - - ---- - - - -- - - - - - -- - - - - - - - - - 19,900, 000 --------------
*Porate------------------------------------------------------------- - 78,000,000 $11.450,000
Netherland East Indies. | |
"Pºrate...........-------------------------------------------------- 436, 880 -------------- -
-
-
|— —
Total. Far East, foreign--------------------------------------------- 154,836,880 11,450,000
Hawaii: – —t ---- ---
**Government........--------------------- i 3.575,000 ! 3,520,000

Philippine islands. | :
Government. --! 2, 110, ſh;0 500,000
"orporate......I.I.I.I.I.I.I.I.I.------------------------------------. |---------------- 6,520,000
Total, Hawaii and Philippine Islands-------------------------------_5,685,000 8,020,000

*nd total, Far East.---------------------------------------------- 160,521,880 | 17,970,000
*nd total, all countries-------------------------------------------- 1,487,801. º : 714,4s, 33i
T- -- — — — ——— -- – ----- - - - - - - --— -- - - -- - - -- - - - -
* Estimated.
22
The Hawaiian issues covered in the table consisted of $1,175,000

Territory of Hawaii 4% per cent public-improvement, gold bonds
maturing in 5 to 29 years and sold in February, 1929, priced to yield
about 4.15 per cent. The county of Hawaii, in October, issued
$400,000 of 5 per cent 5 to 24 year gold bonds at prices yielding 4.5
per cent. In November the Territory of Hawaii sold $1,945,000 of
434 per cent gold bonds, maturing in 5 to 30 years, and yielding from
4.4 to 4.75 per cent.
Philippine government loans in 1929 were limited to a single
municipal issue of the city of Manila. It was issued in June and
consisted of the $500,000 first series, public-improvement loan 4%
per cent gold bonds maturing in 30 years and yielding 4.4 per cent.
The corporate issue was the Roman Catholic Archbishop of Manila
$2,500,000 issue of 3-year, 6 per cent, direct obligation, gold bonds
floated in February.
The $11,450,000 issue of the Toho Electric Power Co. consisted of
3-year, 6 per cent bonds, sold at 96% to yield 7.4 per cent. The issue
was sold, in part, to refund $10,000,000 of 3-year notes sold in July,
1926.
EXCHANGE RATES IN 1929
Below is presented a table showing the monthly averages of buyin

rates in New York for cable transfers on the principal countries o
the Far East during 1928 and 1929. The eſtect of the drop in silver
is apparent in the rates on China and Hong Kong. The course of
the yen reflects the steps taken during the last half of 1929 toward
the removal of the gold embargo.
TAI:LE 6.-IXCIIANGE RATES OF FAR EASTERN ('URRENCIES IN 14)2S ANI) 1929 |
[In United States cents per unit of foreign currency]
China -
-- ------
-
Hong
-
| British 'i.Nether- || Straits
-
Average for-- Kong | India, º lºst i.

, Mexican Shanghai
dollar tael |
Yuan
dollar
| dollar rupee -
l
ſtorin' doiiar
- - - - - ----- - - - --- - - | |→
1928 | |
January--------------, 45.7410 | 45. 1108 50.4006 36.7:24 46.87.84 40. 5596 56. 7650
February-- 45.3620 | 4 1.98.18 49.8564 30. 5184 46. S740 40. 5243 56. 7038
March__ 45. 610 | 45.3688 40, 8008 || 36.5280 47. 1463 | 40. 3498 56. 3469
April-- 45 ~, - | 45. 4958 49.8658 || 36. 5647 47.7136 | 40.2228 56. 2508
May - - 47. 7809 47. 2048 , 51.016S 36. 5013 | 46. (3097 | 40.24:16 56. 1362
June - - : 47.7930 47.4815 50. 5411 36.4618 46. 614) 40.2327 56, 1426
July--- . 47. 0840 32 46.8483 49.0917 | 36.2571 | 45. S476 40. 1528 56.0416
August---- 46.9617 ; : 46.8549 49.897 || 36,2501 45, 0505 39.0752 55, 9815
September- 46. 1813 : 45. 9461 49.71 16 || 36. 3312 || 45.78.32 40. 0300 56.0731
October--- 46.5591 | 46. 1963 49. 9.471 36.4541 46. 2010 : 40. 1161 56. 3404
November- - 46. 5538 46. 1675 : 4). 9763 36.4563 || 46. 3503 40. 1226 56.4409
December------------ | 46. ()455 45.6808 49.787) || 36.4653 45.8940 | 40. 1396 56. 2488
I - •
1920 | I
January-------------- i 45. 6837 (53. 1 168 | 45.4070 49.8161 ; 36.4487 ! 45.5102 40.0623 56.0027
February - - 44.7932 | (52. 1973 4. 58 , 8849 3 29 45.2103 || 39.0218 55.9681
March-- 44.8856 62. 2304 | t 36. 36.23 44. 5203 || 39.9396 56. 0752
April -- 44.2260 --- | 36. 3107 44.6176 39.9896 55.9615
May-- 13. 2824 | t; - 36. 1817 44. 646() 40. 1000 55.9824
Juno - - 42. 1116 : - ; 41. 1866 36,0292 43,8830 | 40,0520 55. 9284
July--- 11. 6354 | 41. 5321 48. 35, 9742 45. 5571 40. 03:46 55.8775.
August -- 41.4362 3 11.3649 . . 9.432 35. 9714 46.6928 30, 0000 55.8666
September- 40.2639 36 40.0963 47.7035 36.0324 47. 2731 40.0000 55.9884
October____ 39. 3666 54. 77. | 39. 1065 44. 1532 36. 1646 47.7500 | 40. 1377 56.2211
November- --, 39.3730 54. 715.4 30. 1987 43. 2180 36.2460 48. 7268 40. 2313 56.2144
December------------ | 38. 7331 : 53. 6839 | 38. 5741 | 42.2258 36. 3638 i 48.0564 40.2520 56.0658
Par value------------ | G) () () (?) 36.4992 || 49.8361 ** **

- l
From the Federal Reserve Bulletin, January, 1930.

* Silver currency. Par of exchange, representing gold value of unit, computed by multiplying silver
content by New York average price of silver for 1928 and 1929, was as follows:
23
TABLE 6–ExCHANGE RATES of FAR EASTERN CURRENCIES IN 1928 AND 1929–Con.
Average “par” value of— 1928 1920
U. S. cents | U. S. cents
Mexican dollar------------------------------------------------------------------ 45.95 41. SS
Shanghai tael.-- 63.84 58. 18
Yuan dollar----- 45.45 41. 42
Hong Kong dollar 45.62 41.58
SUMMARY OF AMERICA’S TRADE WITH THE ORIENT IN 1929
The United States in 1929 purchased from Asia $500,000,000 more

of merchandise than it sold there, American exports to the Far East
aggregating $833,000,000, contrasted with imports from the Orient
valued at $1,333,000,000.
The most important among the far eastern buyers of American
oods were Japan, Australia, and China, in the order named; if
wantung Leased Territory and Hong Kong be included with
China, that country then takes second place. American imports from
the Orient came chiefly from Japan (silks and teas), Malaya (rubber
and tin), China (silks, furs, hides and skins, carpet wool, and wood
oil), India (burlap, hides and skins, jute, shellac, and castor-beans),
and the Philippine Islands (sugar, coconut, oil, copra, and hº
The following are preliminary estimates of the year's merchan
dise trading between the United States and the principal countries
of the Far East:
TABLE 7–AMERICAN TRADE witH CERTAIN FAR EASTERN Countries IN 1929
[In millions of gold dollars]
Total Net excess of

Ağ.
American
imports ———--.
into
Country exports | United -
t
to States Exports : Imports

from |
|
i
55.4 149.3
14.6 239. 1
124.4 166.2
11.8 4, 8
19.6 11.7
45.7 82.3
2.5 2. I
259. 1 431. 9
85. 6 125.8
3.2 .5
150. 1 31.9
New Zealand. 39.5 20. 9
Total, above items

Total, Asia *----------------- --
Total, world---------------------------------------------
işºare p
! All figures are preliminary.
y
*Includes, besides Australia and New Zealand, certain Asiatic countries not enumerated in this table.
Source: Statistics supplied by the Far Eastern Section, Division of Regional Information.
O
ºf
2. -
%’s BUREAU of Foreign AND DOMEstic commeRCE

*EGEIW ED William L. COOPER, Director
F
*Dº 1 0 1930
0|S, U, LIBRARY
FINLAND:
AN ECONOMIC REVIEW
HF
105
205
06th UNITED STATES
WASHINGTON : 1930

v.
}
*
FOREWORD
In the 12 years since the establishment of its independence, Finland

has made great progress in the readjustment and development of its
national economic structure. The new political and commercial
orientation resulting from the war and the disorganization of the
Russian market involved problems of the most vital consequence for
Finland, which have been courageously and, on the whole, success
fully met. A most complete reorganization was necessitated in Gov
ernment finance, domestic industry, and foreign trade. The degree
to which this has been accomplished, within a relatively short period,
is a notable achievement and justifies a confident view of the future
prosperity of the country.
The participation of the United States has more than kept pace
with the steadily growing foreign trade of Finland in recent years.
In the five years from 1924 to 1928, the total imports of Finland ex
#. from $118,358,000 to $201,925,000; our share increased from
15,795,000, or 13.3 per cent of the total, in 1924 to $29,716,000, or
147 per cent, in 1928; in the last three years of this period we held
*ond place in Finland's import trade. Our share in the exports of
Finland has also increased both absolutely and relatively in the ex
pansion of this trade, from $124,762,000 in 1924 to $157,382,000 in
1928; 6.5 per cent, or $10,294,000, of the 1928 exports went to the
United States. - - -
. The present study, compiled in the Division of Regional Informa

tiºn of this bureau, aims to review the basic economic conditions of
inland in such a way as to give a clear appreciation of the present
*tus and the future possibilities, particularly in their bearing on
*rnational trade. In its preparation much use has been made of
*...excellent statistical and general material published in the Sta
listical Annual of Finland, the Bank of Finland Monthly Bulletin,
$nd the semiofficial compilation entitled, “Finland: The Country,
* People and Institutions.” Numerous and valuable reports sub
"d by American Consul James R. Wilkinson and American Com
"ºil
Sl Attachés Frederick
Helsingfors), B.been
have also and Osborn
Lyonfreely S. Watson, at Hºl
drawn upon.
lso ° attention of those who are interested in Finland is called
rti tº the monthly cable reviews of economic conditions and special
º: published in Commerce Reports, as well as to bulletins of
. Pºific commodity interest issued from time to time by the
In . divisions of this bureau. The bureau's extensive files of
i ..ial on Finland are also freely placed at the disposal of
nquirers. -

Manch, 1930.
(III)
I6 20
WowowryCETrºy of cºwwºw
FINLAND
- RAILROA63\.
% AGRICULTURANAREA
Q --- so
SCALE N \ vuz
tºo
* *To
T---------- tº
RAN
& *.
ŠºšS N
Xº §: adu
*ſº *
** ¥sº
'ºtºy
Mariehamnºſ oo ſº or ºss
,, wi a "" * º -60
l *** **'.........-a ºr...º-º-º:

20 24 ze 32
The following list of geographic names mentioned in the text shows official
Finnish forms with (in parentheses) Swedish equivalents previously used.
Ahvenanmaa (Åland) Mikkeli (St. Michel)
Häme (Tavastehus) Oulu (Uleåborg)
Hanko (Hangö) Pori (Björneborg)
Helsinki (Helsingfors) Rauma (Raumo)
Koivisto (Björkö) Tampere (Tammerfors)
Kokemäenjoki (Kumo River) Turku (Abo)
Kymi (Kymmene) Uusimaa (Nyland)
Lappeenranta (Willmanstrand) Waasa (Wasa)
Loviisa (Lovisa) Viipuri (Viborg)
(IV)
FINLAND: AN ECONOMIC REVIEW
Compiled by Alvin C. Eichholz and Herbert Rodeck, Division of Regional Information
INTRODUCTION
The independence of Finland was proclaimed on December 6, 1917,

and the republican form of government was established by the consti
tutional law of July 17, 1919. Prior to independence Finland had the
status of an autonimus Province of the Russian Empire, with its own
ºnt practically controlling all internal political and financial
IſlatterS.
. For administrative purposes the country is divided into the Proy

inces of Uusimaa, *...}. Ahvenanmaa, Hame, Viipuri, Mikkeli,
Kuopio, Vaasa, and Oulu. In 1928 there were 38 towns, 16 buroughs,
and 533 rural communes in Finland.
AREA AND POPULATION
The extreme length of the country, north and south, is approxi

mately 750 miles, the width about 380 miles; the total area is 149,915
Square miles, of which lakes comprise 11.5 per cent. Among Euro
pean countries Finland ranks sixth in area, after Sweden and before
Poland. It is somewhat smaller than California. Of the 84,912,000
ºres comprising land area, forest lands cover about 62,500,000 acres
(73.4 per cent); permanent meadows and pasture lands, nearly
3,000,000 acres (3.4 per cent); cultivated land, 5,336,000 acres (6.2
per tº: and uncultivated land, largely bog, 14,500,000 acres
per cent).
(17
Finland lies between 60° and 70° north latitude, roughly the same
as Alaska, and between 19° 8' and 32° 48' east jºi. The coun
tly is bounded on the north by the Arctic Ocean, on the west by the
Gulf of Bothnia, and on the south by the Gulf of Finland; it has a
total seacoast of 1,021 miles. The land frontier with Sweden in the
northwest extends 332 miles; with Norway on the north, 566 miles;
and with Russia on the east,986 miles.
The population of Finland, as officially estimated for December 31,
1927, was 3,582,405, approximately equal to that of California and
slightly greater than that of Denmark. Of this number, 1,770,162
Were, males and 1,812,243 females. The population is concentrated
thiefly in the south, where the density averages 46.8 per square mile;
in the north it averages only 6.2; for the entire country the average
#26.9. By residence, 80 per cent inhabit the rural and 20 per cent
the urban districts. The chief cities (population officially estimated
*ś9f December 31, 1927) are: Helsinki, the capital, with a population
of 220,904; Turku, 62,599; Tampere, 53,121; Viipuri, 49.912; Vaasa,
(1)
-
2
24,204; Kuopio, 23,486; and Oulu, 23,286. By occupation (census of

1920) about 65.1 per cent of the population were engaged in agricul
tural pursuits, 14.8 per cent in industry and manual labor, 3.4 per cent
in commerce, and 16.7 per cent in other pursuits.
RACE, RELIGION, AND LANGUAGE
Finland is racially very homogeneous, 88.7 per cent of the popula

tion being Finnish and 11 per cent Swedish (census of 1920). The
Finns, as known to-day, are the result of a long-continued blending
of races. Archaeologists agree that the early inhabitants of the west
and southwest were of Indo-Germanic extraction, and those of the
east were of the Finno-Ugrian race. The struggle with the severe
northern climate and a barren soil has made the Finn industrious
and hardy and has bestowed on him a toughness and energy that
account for his athletic prowess in recent international athletic
competitions.
The established church is Lutheran. About 97 per cent of the
people are of that faith and 1.7 per cent are Greek Orthodox.
The Finnish language is spoken by 88.7 per cent of the people and
Swedish by 11 per cent (census of 1920). Finnish and Swedish are
the official languages, but English and German are widely used in
commercial circles.
In 1926 there were published 398 newspapers and periodicals in
Finnish, 98 in Swedish, 58 in Finnish and Swedish, and 6 in other
languages.
EDUCATION
Finland is well known for its excellent educational system.

According to the 1920 census, less than 1 per cent of all persons over
15 years of age were illiterate and 29.1 per cent were able only to
read. Of 64.6 per cent who were able to read and write, 5.3 per cent
had education higher than public school. . . .
The regular courses in the lyceums and higher institutions include
instruction in Swedish and German in addition to Finnish. English
and French are elective.
GOVERNMENT
Finland is a sovereign, democratic, parliamentary republic. Its

chief executive is the President of the Republic, who is indirectly
elected by the people, through electors, for a term of six years. The
legislative power of the country is vested in the Diet, a single
chamber of 200 members elected by universal suffrage. Every
Finnish citizen, male or female, 24 years of age, possesses the right
to vote. The Cabinet or Council of State consists of 10 ministers
appointed by the President, who remain in office only so long as they
collectively and individually enjoy the confidence of the Diet.
Although Finland is located in the same latitude as Greenland and
Alaska, the proximity of comparatively warm seas and gulfs, over
which pass the prevailing southwest winds, moderates the climate.
The northerly latitude, of course, causes a great seasonal variation
in the length of the day. - -
Winter is the longest season in Finland, lasting four months In

the south and seven months in the north. During November in the
-
north and December in the south, the lakes freeze and snow appears.
Climatic changes during the winter are often great, with intense
frost accompanying clear calm weather and thaws following the
mild south and southwest winds. On an average the ground is
covered by snow from 100 to 200 days of the year in south Finland
and from 200 to 250 days in the north. Spring generally begins in
April, the snow and ice melt very rapidly and by the end of May
have practically disappeared. The average temperature during the
winter is 25° F. in the south and 12° F. in the north; during the
summer the average is 63° F. in the south and 53° F. in the north.
The mean annual temperature for the whole of Finland is 33° F.
The average temperature at Helsinki is 22° F. in January, 62° F. in
July, and 40° F. for the year.
The average precipitation in Finland is 54 centimeters (21 inches)
or somewhat less than in neighboring countries, but in general suffi
cient for agricultural needs. Finland has an average of 100 to 120
rainy days a year, occurring in summer and autumn. A considerable
part of the annual precipitation is in the form of snow, in the south
west about 30 per cent and elsewhere about 40 per cent. Its melting
frequently causes violent floods in the river basins. The heavy
winter snowfall greatly facilitates transportation, particularly of
timber. Skiing is an easy and rapid means of communication over
swamps and through wildernesses and other regions where traveling
is difficult in winter.
Helsinki standard time is 7 hours earlier than that for New York.
RESOURCES AND PRODUCTION
MINERALS
Finland is relatively poor in natural mineral wealth, although

geologically akin to Sweden which is rich in ore. The country has
inexhaustible resources of good-quality granite, which is quarried
quite extensively and used for building and other purposes. There
is no coal, and iron-ore deposits are rather poor and are not worked
at the present time. The only valuable metal found in any quantity
is copper, which occurs in the form of copper pyrite. There is one
important deposit, located at Qutokumpu, which is estimated to
contain from 7,000,000 to 8,000,000 tons of fairly rich ore of uniform
quality. By analysis it contains 4.5 per cent copper, 28 per cent
iron, 27 per cent sulphur, and 1 per cent zinc. . The present annual
output of the mine is 100,000 metric tons valued at 35,000,000 marks
($882,000). The mine is operated as a Government enterprise under
the Ministry of Trade and Industry and is controlled by a board.of
directors appointed by the Government for three years. In recent
budgets the state has allowed funds for extension of the mine's
operations, when annual production is expected to total 20,000 tons
of sulphur, 4,000 tons of copper, 35,000 tons of iron ore, and some
zinc, cobalt, gold, and silver. Small quantities of nickle, asbestos,
and kaolin also are found in Finland. Large areas of limestone
and dolomite, in different sections of the country, are used for pro
ducing lime and cement.
4
WATERPOWER
Finland has rather extensive water-power, recources; the develop

ment of which has been hastened somewhat by the lack of domestic
fuel supplies. While no large waterfalls are to be found in Finland,
there are numerous rapids in different sections of the country. The
available water power is estimated at 1,800,000 horsepower, calcu
lated on the amount of water available during nine months of the
year. Of this amount only about 244,000 horsepower (13% per cent)
has been developed and utilized. In answer to the increased de
mands of industry for power and of the towns for electricity for
lighting, the Government has undertaken the systematic development
of the hydroelectric power resources of the rapids at Imatra on the
Vuoksi River, which are considered adequate for the country's needs
for some years to come. The Vuoksi River which drains the eastern
part of Finland, has a drop of 211 feet in the first 17 miles of its
course, and the falls when regulated will produce a net head of 75
feet. With the initial station at Imatra now in operation, the
Vuoksi River is utilized to the extent of 30.5 per cent of its capacity
for nine months. The rivers flowing into Lake Ladoga are utilized
to 88 per cent, the Kokemäen River to 64 per cent, and the Kymi
River to 57 per cent of their nine-months capacity. These rivers
alone, for the nine-month period, having a total power capacity of
1,314,000 horsepower.
Work on the Imatra project has been in progress since 1922 and
has proceeded according to program. The initial plant, put into
operation on April 2, 1929, has a capacity of 81,000 turbine horse
power and was constructed at a cost of about $58 per horsepower pro
duced. It is planned to permit subsequent enlargement up to 200,000
horsepower at a total estimated cost of 350,000,000 marks $8,820,
000), or about $44 per horsepower. The expense of construction is
largely met from current Government revenues. Power is transmit
ted at 120,000 volts to a Government transformer at Helsinki and
from there supplied to the Municipal Electrical Works at 35,000 volts.
At present the Imatra plant supplies 11,000 kilowatts and a station
at Helsinki, which previously met the entire demand, furnishes
2,000 kilowatts.
With the extension of power lines included in the Government's
project, the whole of south Finland, including the cities of Helsinki,
Viipuri, Turku, Lappeenranta, and other municipalities will be
supplied with cheap power and light. This section embraces nearly
50 per cent of the total population, 80 per cent of the urban popu
lation, almost half the land under cultivation, and more than 70 per
cent of the industries.
Finland's industrially utilized water power (both for direct mo
tive power and for the generation of electric energy) amounted at
the end of 1928 to 243,757 turbine horsepower; with the starting of
the Imatra plant and the completion during 1929 of two other sta
tions of 18,700 horsepower capacity, the country's industrially util
ized water power will be increased to 343,500 turbine horsepower,
of which 262,500, are controlled by private enterprises. Finland
will thus be utilizing 19 per cent of its potential water power. Of
the total amount of water power utilized at present, the pulp and
O
paper mills use about 65 per cent, other industries about 10 per cent,
and the remainder serves for lighting and for agricultural and other
purposes. ... The effective horsepower directly employed by the in
dustries (including steam turbines, etc.) amounted to 499,702 in
1927, nearly double that of 1920.
Further hydroelectric development, including the electrification
of the railways, the establishment of a nitrogen-fixation plant, and
other projects, will be undertaken in accordance with economic
needs and the availability of capital. Water-power producers have
recently formed an association, the purpose of which is to cooperate
for the economic utilization of water power in industry and for the
general advancement of the country.
FORESTS
Finland, with nearly three-quarters of its total land area covered

by forests, is the most densely wooded country in Europe, and the
commercial value of its timber resources is considerably enhanced
by the cheap and convenient transportation afforded by the numer
ous rivers and lakes.
Although both coniferous and deciduous trees are indigenous to
Finland, the former predominate and fully 89 per cent of the forest
area is softwood. The two coniferous varieties of chief economic
value are the common or European pine (Pinus silvestris) and the
common or European spruce (Picea eace/sa). The former accounts
for 61 per cent, and the latter, used considerably in paper making,
for 28 per cent of the forest area of the country. The most im:
portant hardwood found in Finland is birch (Betula odorata and
Betula verrucosa) which predominates in 11 per cent of the total
forest area and supplies the plywood and bobbin or spool industries.
Other hardwoods found in Finnish forests are aspen, used by the
match industry, and alder (Alnus, incana). Roughly 80 per cent
of the forest area is considered productive.
The results of a forest survey in 1923 indicate that 39.7 per cent
of the forest is State-owned, 52.1 per cent privately owned, 6.5 per
cent owned by joint-stock companies, and 1.7 per cent owned by the
communes and municipalities. The State holdings are principally
in the northern and eastern sections, the private areas are in the
South.
In the same survey it was estimated that the growing stock of the
forests was 57,213,000,000 cubic feet and that the merchantable tim
ber (approximately 8 inches at breast height) amounted to 1,557,000,
trees. The annual growth of the country's forests is estimated
at 1,568,000,000 cubic feet and the annual fellings are calculated at
1413,000,000 cubic feet. Of the annual cut, from 815,000,000 to
$85,000,000 cubic feet are for home consumption and from 460,000,000
to 495,000,000 cubic feet are exported. It is estimated that 40.9 per
cent of the annual cut is consumed by the rural population, 24.4 per
‘ent by the woodworking industries, and 8 per cent by the industries
or fuel purposes. The great importance of the forest industries in
the national economy is shown by the fact that during the 10-year
period, 1916–1925, exports of the products of the woodworking indus
tries averaged 78.9 per cent of total exports and during the last four
100.936–30—2
6
years practically 85 per cent. In 1927, woodworking industries em:

ployed 47 per cent of all industrial workers and the output was valued
at 5,700,000,000 marks ($143,640,000). Such exports in 1928 were
valued at 5,357,000,000 marks ($135,000,000).
The Government of Finland has for many years followed a defi
nite forest policy and through legislation controls all felling, refor
estation, forest drainage, and other activities in connection with the
utilization and conservation of the forests. All matters pertaining
to the forest policy are controlled by the Board of Forestry under
the Ministry of Agriculture. The activities of the board have in
creased considerably in recent years and in 1928 it had a gross income
of 413,800,000 marks and expenditures of 222,700,000 marks. The
balance, 191,100,000 marks, was included in State revenues under the
budget.
(See also an article in Commerce Reports, Dec. 12, 1927, p. 670,
entitled “The Economic Significance to Finland of its State For
ests”; and Trade Information Bulletin No. 408, Latvian Timber Re
sources and Trade, which contains a study entitled “Forest Policy
of Finland.”)
AGRICULTURE
Finland is essentially an agricultural country; according to the

census of 1920 about 65 per cent of the population was then de
pendent on agriculture for its livelihood, although the area under
cultivation, 5,335,860 acres, amounts to only 6.3 per cent of the total
land area. Farming is strongly affected by the northern climate and
the physical features but, in spite of these natural hindrances, notable
progress has been made, particularly in the past two decades. The
Government has actively assisted in the development of agriculture
by means of loans and bounties, and by the maintenance of experi
mental stations, seed culture centers, and educational services.
Largely through Government assistance the cultivated area has been
steadily enlarged, and through the use of artificial fertilizers and sci
entific methods crop yields have increased.
Under the Government's land-reform policy the large estates of
pre-war years were broken up and parceled among the former tenants.
In 1901 there were 138,072 estates or farms and by 1927 these had
been increased to 394,301. Finland has thus been made a country of
small farmers; according to 1927 figures 58 per cent of the farms
comprised less than 20 hectares (nearly 50 acres), and 30 per cent
were from 20 to 100 hectares (about 50 to 247 acres). The successful
execution of these reform measures has aided in raising the cultivated
area by 37 per cent—from 3,873,000 acres in 1901 to 5,335,000 acres
in 1927. The quality of the crops also has been improved.
The value of agricultural production in 1928 was estimated at
4,300,000,000 marks ($108,360,000) as compared with 5,280,000,000
marks ($136,056,000) in 1927 and with about 5,000,000,000 marks
($126,000,000,000) in each of the preceding two years. The lower
value in 1928 was the result of smaller yields consequent on the
abnormal weather conditions. The value of crops is estimated to
be from 30 to 60 per cent above pre-war. The average value of
the harvest in recent years is about 37 per cent of the value of the
industrial production in 1928.
7
GRAIN AND FORAGE CROPS
Formerly the cereal grain harvest of Finland in normal years was

more or less sufficient for the needs of the population, but in the
decade immediately before the war grain culture diminished ap
preciably, as the Finns were able to obtain unlimited quantities of
cheap grain from Russia. The war cut off these supplies and those
from other countries, and the Finns recognized the imperative neces
sity of producing sufficient bread grains to insure the subsitence of
the population. Since the war, grain production has steadily in
creased and grain imports have been reduced. It is doubtful, how
ever, whether Finland will ever become entirely self-sufficient in
grain production. In addition to the physical hindrances to crop
culture in the way of limited agricultural land, the extreme and
frequently abnormal weather conditions during recent years have
discouraged the farmers. The fact that crop failures tend to lower
the purchasing power of the bulk of the population and generally
to render trade unfavorable has encouraged the development
of cattle raising and dairy farming, from which more stable and
satisfactory results are obtainable. The large meadow and pasture
areas also have been conducive to the expansion of the dairy in
dustry.
The production of all crops during recent years has been greatly
in excess of the pre-war output, yet in a number of instances the
area planted is below the 1909–1913 average, indicating that scientific
farming has contributed to the larger yields. The area under culti
vation, the harvest returns, and the per acre yield of crops in recent
years are shown in the following table.
AREA AND PRODUCTION OF PRINCIPAL I'INNISH ("Rops
! - - - i
Area (thousands of acres) i

Production (thousands of bushels . Yield per acre
except as indicated) (hushals)
C.rop ------- - - -- — - - - –– ––
1909–1913||1922–1926 '1900–1913 1922–1926 | 1922–1926
(aver- | (aver- . 1927 | 1928 (aver- (aver- 1927 1928 (aver- 1928
age) age) age) age) | age)
- --
-
| — —
-—
8
589 as
575 4 || 573
567 42 10,- 478
13 ºn 12,1.04
11, 360 | t 21.2
19.7 20.9
19.0
278
999
273
1,068
2(;7
1, 112 | 1, 128
; 4, 804
24,752
|
|
21.9
33.4
21.9
31.3
182 167 174 173 16, 716 i 140. 6 139.8
(1) 14 13 14 3 4, 244 : 229.8 ± 189. ()
(1)
(1) 2.0%3 2, 13:7 |2,
| iſ8 | 31,066
(1) 1. 1 , .* ~.
... ::
1.20
! I |
! Figures not available. ? Pounds of fiber. \lot lic tons.
The most important grain crops are oats, rye, and barley. With
Respect to bread grains, the acreage in rye is below pre-war but
arvests in recent normal years exceed the pre-war average by 10
* 15 per cent; the wheat acreage, though relatively small, is more
than five times that of pre-war years, and the harvest in normal
Wººls is about eight times as large.
e development of cattle raising and dairy farming has increased
he culture of forage and root crops used for feed. While the
°untry has large meadow and pasture areas for grazing, the long
8
winters make necessary the stocking of large quantities of feedstuffs

for which domestic supplies are insufficient, and considerable imports
are therefore necessary. Oats, barley, mixed cereals, and potatoes
are the principal forage crops. The acreage in hay has increased
only slightly over pre-war years, but recent harvests are from two
and one-half to three times greater than the average during pre-war
years. .
The greater use of artificial fertilizer is reflected in its imports,
which increased from 55,000 metric tons in 1923 to 190,500 tons in
1927, falling off to 177,000 tons in 1928. A factory was recently
established by the Government to satisfy at least a part of the
steadily increasing demand, and its larger output during 1928 was
partly responsible for the lower import during that year.
Despite the increased agricultural production, the country is still
dependent to a considerable extent on the importation of cereals,
though such purchases have tended to decrease. The table follow.
ing gives a comparison of the country's production, imports, and
consumption of grains and potatoes in 1927 with the annual average
for the 5-year period, 1921–1925, and with the 10-year period,
1911–1920. An interesting tendency, noticeable in the table is the
larger per capita consumption of all grains and potatoes with the
single exception of rye. The increase in population from the aver
age of the 10-year period, 1911–1920, to that at the end of 1927 was
9 per cent. On the same basis, the per capita consumption increased
as follows: Wheat, by 13 per cent; barley, by 29.2 per cent; oats,
by 73.7 per cent; and potatoes, by 58 per cent. Consumption of rye
decreased by 14.7 per cent.
SOURCES AND USES OF GRAIN AND POTATOES IN FINLAND
[In metric tons, unless otherwise indicated]
Item Wheat, Rye Barley Oats | Potatoes
1911–1920 (AVERAGE)
Sources:
Harvest----------------------------------------- 5,925 || 250, 164 102,375 367, 169 475,079
Import------------------------------------------ 128,330 219, 572 8,719 13,963 11,900
Uses:
For seed----------------------------------------- 87 35, 671 21,794 75, 191 98,166
Manufacture of Spirits--------------------------- 15 961 1,865 279 5
Export------------------------------------------|---------- 463 |---------- 2,759 169
Consumption--------------------- - 133, 360 432, 641 87,435 | 302,903 388,639
Per capita consumption (in pounds)------------- 87.1 291. 5 58. 8 197.9 254.1
1921–1925 (AVERAGE) |
Sources: - -
Harvest----------------------------------------- 20, 116 , 287,458 125,884 501, 196 593, 553

Import------------------------------------------ 137,898 || 148,858 3,014 27, 531 16,772
'Ses:
For seed----------------------------------------- 2,411 32,972 21,890 82,653 110,449
Manufacture of spirits- ------------------------------ 133 882 221 |----------
Export-------------- ------------------------------ 214 5 1,821 92
Consumption------------------------------------ 155,602 || 402,997 || 106, 120 444,032 499,784
Per capita consumption (in pounds)------------- 98.9 256.3 67.4 282, 3 317.8
1927
Sources: -
Harvest- 28,954 327,465 || 143,067 || 632,988 758,012

133,714 : 113,720 1, 461 | 12, 166 8,897
2,076
------------
32,347
248
21,3931 || 86,833
667
| 115,471
66
Consumption----------------------- 159, 692 408, 590 | 123, 134 557,654 651, 372
Per capita consumption (in pounds)------------- 98.5 248.6 #6.0 343.8 401.6
9
POTATOES, SUGAR BEETS, AND OTHER CROPS
Potatoes are extensively raised, largely for local consumption.

They are an important feedstuff and are used industrially for the
production of starch. Gardening is quite extensive in Finland.
though confined to the south and central portions of the country.
The culture of fruit trees and fruit-bearing bushes is quite general
and has been steadily pushing northward despite the severe-climate,
through the planting of imported hardy varieties. Apples, whortle
berries, currants, gooseberries, and, recently, strawberries are the
leading fruit crops. In good years quantities are exported.
The cultivation of sugar beets was started recently in the southern
section, largely through Government efforts, as a means of lowering
sugar imports. The industry receives aid and protection through a
bounty on production and through an import tariff. In 1928 about
8,000 acres were planted, and the harvest totaled 47,000 metric tons.
BEES AND POULTRY
The keeping of bees is of importance and an increasing quantity

of high-grade honey is being exported.
In recent years poultry keeping has been increasing, particularly
among the new landowners. Several cooperative societies, founded
for the purpose of increasing the sale of eggs, have been successful,
and through a central organization are exporting in growing
quantities.
LIVESTOCK AND DAIRYING
Stock raising has long been an important occupation in the coun

try's agricultural economy, as it is the chief source of cash income for
the farmer. On account of the long winter there are only three or
four months of the year when grazing is possible and it is generally
necessary to import large quantities of feedstuffs for winter feeding.
Dairying is the most important branch of cattle raising and furnishes
a large production for export in excess of domestic requirements.
The raising of beef cattle, sheep, and pigs also is of importance, but
their production is not sufficient to supply local needs. Horse breed
ing is fairly general, and reindeer are kept in the northern sections.
, Public measures for the promotion of stock raising have been
directed almost entirely to the improvement of dairy farming and the
Care of milk cows. These measures have been successful in develop
ing home breeds, in increasing production from dairy farming, and
in raising the general quality of all products. All branches of
animal husbandry are operated more or less on the cooperative basis;
chief among these are dairy societies and unions, horse-breeding
Societies, cattle-breeding and control societies, and pig-breeding
groups.
The importance of raising domestic animals is shown in the fol
lowing table in the increase in number of livestock which, with the
exception of pigs and reindeer, now exceeds pre-war figures.
10
NUMBER OF PRINCIPAL DOMESTIC ANIMALS IN FINLAND
Cattle
Year Horses Sheep and Pigs | Reindeer

goats
366,000 | 1,605,000 | 1, 166,000 | 1,341,000 || 422,000 | 127,000

207,200 | 1, 178,200 1, 141,800 l 1 (1)
262,400 | 1, 219,400 1,046,900 827,800 || 110,900 (1)
384, 600 1,824, 400 1, 174,000 | 1,716, 294 || 373, 600 52,800
400, 200 1,864, 600 , 1, 277, 700 1,561, 700 381,700 61,000
403,000 | 1,864, 500 1,288,700 | 1,484,500 375,700 61,000
401, 700 | 1, 870, 600 11, 295, 500 | 1,462, 900 378, 400 61,400
400,000 | 1,860, 500 1,291,900 | 1,424,800 390,500 67,400
* l
1,871,900
1,,916,
9 600
1,282, 800
1,301.900
| 1,379,200 || 417,700
(1) (1)
66,000
(1)
1 Figures not available.
In 1927 the production of butter by dairies reached 22,320 metric

tons and of cheese, 4,189 metric tons. Dairy products are the third
most important item of export. Over 15,000 metric tons of butter,
valued at 475,000,000 marks ($11,970,000), and nearly 3,000 metric
tons of cheese, valued at 54,000,000 marks ($1,361,000), were exported
in 1927; but in 1928 these figures were cut down by the greater do
mestic demand. Butter exports go chiefly to Great Britain and
Germany and cheese exports mainly to Germany and the United
States. -
FISHERIES
Finnish fisheries are not so important as the extensive coast line

and the large number of rivers and lakes indicate. The usual varie
ties of sea fish are scarce and form an insignificant part of the annual
catch. The commonest food fish that forms the bulk of the catch is
the Baltic herring. The sea catch is augmented by the inland water
catch, the principal varieties taken being the salmon, lake trout,
white fish, lavaret, lamprey, pike, perch, roach, and lote. Salmon
fishing in the large rivers is a State monopoly, leased out to fisher
men. Seal hunting in the northern waters is a subsidiary occupation
of a number of the sea and Lake Ladoga fishermen.
Finland's fish catch in 1926 totaled 20,700,000 kilos, of which 13,
000,000 kilos were Baltic herring. The sea catch amounted to
16,900,000 kilos and the inland water catch 3,800,000 kilos. This
compares with an average annual catch of 29,300,000 kilos durin
the 10-year period, 1911–1920. Before the war large quantities o
fish were exported to Russia, but this trade has entirely disappeared;
the present small export goes largely to Sweden and Estonia. On
the other hand, large quantities of salted herring are imported
annually.
COOPERATIVE ACTIVITIES
The founding of the Pellervo Society in October, 1899, marked

the beginning of systematic cooperative work in Finland. The
movement did not start, as in most countries, with the formation of
local societies later organized into central societies, but developed
11
from the center outwards, according to a definite prearranged plan.

The Pellervo Society worked to promote the prosperity of the people
by spreading the idea of cooperation among them, by promoting the
establishment of different kinds of societies, and by other activities.
The practical work of actually forming cooperative societies started
with the passage of the cooperation act of July 10, 1901. The growth
was extremely rapid, and at the end of 1926 there were over 5,000
cooperatives registered (unofficially estimated as over 5,600 at the
end of 1928); these comprise over 700,000 members and include
almost every form of activity, especially those in connection with
agriculture. The cooperative societies have been successful in aiding
the rural population, both in marketing their products and in pur
chasing and distributing supplies.
The cooperative movement has had an uninterrupted growth and,
particularly among the rural population, it dominates all activities.
As merchandising media the various societies rank foremost and are
said to handle one-third of the retail and more than half of the
wholesale trade. Goods imported by the cooperatives have usually
been purchased through Finnish agents of foreign producers, but
toward the end of 1928 the Finnish cooperatives were admitted to
membership in the Scandinavian Cooperative Central Office, which
has its headquarters in Copenhagen; for the future it is planned to
purchase chiefly direct from the producers themselves through the
agency of this central bureau.
The table following, showing the rapid expansion in cooperative
organizations, gives the number of the principal kinds of cooperative
Societies with their membership for various years from 1903 to 1928.
REGISTERED COOPERATIVE SOCIETIES IN FINLAND
Distributive, or -
consumers, soci- Dairies Iland banks Other Societies Total 1

eties |
Year - - - - - l
i | i -
Num- Mem- Num- | Mem- Num- | Mem- Num- Mem- Num-' Mem
ber bers ber bers ber bers ber bers ber bers
.
69 13,100 75
–
-
|- 15,800
4,000
-
24 500
----
25 500 193 | 18, 100

171 26,400 226 140 4, 100 59 1,500 596 47,800
525 79,000 68 30, 100 418 17,500 619 35,000 1,930 , 161,600
525 81,900 | 420 ! 36,800 . 478 i 21, 200 728 42,000 2, 151 181,900
801 || 330,900 511 41, 600 728 32,900 1,233 100,000 || 3,273 505, 400
817 | 342,500 550 46, 500 949 51,400 1,408 110,000 || 3,724 550, 400
804 || 371,000 | 613 52,300 1, 170 : 78, 800 1, €72 . 120,000 || 4, 259 622, 100
802 || 387,500 : 673 57,800 1,363 95,400 1,831 125,000 || 4, 669 665,700
797 | 402,200 | 734 62,300 1,466 108,800 2,000 130,000 5,087 703,300
800 ---------- - 770 !---------- , 522 ---------- 2,305 ---------- 5,397 i----------
797 ---------- . 793 ---------- - 1,545 ---------- 2,513 ---------- 5,648 ----------
| – —— — —— — — — . —- - - ––––– - - " - - -- - - - -
1 Estimated. 1 Unofficial figures; official statistics not yet available.
CONSUMER SOCIETIES
The cooperative idea has been of notable importance to the farm

ers and city residents through the development of distributive, or
consumers’ societies. This group constitutes one of the most im
portant channels for the sale of machinery and supplies for the farms
and of foodstuffs and small manufactures in the cities. They are
12
said to handle one-third of the retail trade of Finland, stocking and

distributing every kind of article sold, through their numerous
branch shops scattered throughout the country. It is estimated that
30 per cent of grocery sales are made through these societies. Com
mercial cooperative societies resemble in form the chain stores devel
oped in the United States. In addition to the numerous grocery
stores, they operate a number of dairies, margarine factories, flour
mills, bakeries, drug stores, cafés and restaurants, meat shops, non
alcoholic beverage factories, and other kinds of commercial estab
lishments.
DAIRY COOPERATIVES
The group second in importance comprises the cooperative dairies.

The first dairy cooperative was founded in 1902, and within 10
years these societies controlled almost the entire dairy business of
the country. At the present time the cooperative dairies produce
more than 95 per cent of the dairy butter output. The number of
cows supplying the cooperative dairies constituted 31.5 per cent of
the total in the country in 1926. In 1927 the cooperative dairies
manufactured 20,970,000 kilos of butter and 2,826,000 kilos of cheese,
most of which was exported.
The Central Cooperative Butter Export Association, Walio, which,
through the cooperative dairies associated with it, controls the bulk
of the production and export of butter and cheese, has succeeded
in raising to a high standard the quality of Finnish dairy products.
Most of the cooperative dairies are also members of 13 dairy leagues,
the work of which is largely advisory, aiming to guide the dairy
workers in technical matters, in the economic care of dairies, and in
various other matters—all intended to maintain the high standing
of the national dairy industry. Legislation is enforced making ex
amination of Finnish export, butter and cheese compulsory. This
control is carried out in order that, the uniform high quality of
Finnish dairy products may be maintained and their reputation
abroad may not be impaired.
OTHER COOPERATIVES
The third important cooperative group is that of credit societies

or rural banks. This subject is discussed below under “Private
finance,” in connection with mortgage and savings banks.
Cooperatives for breeding and slaughtering of livestock, for egg
buying, and for the operation of sawmills also are organized into
groups. In addition to these three groups there are telephone, build
ing, electric, fishing, peat-working, and numerous other societies reg
istered as cooperatives; most of them, however, are very small and
decentralized.
SALES BY COOPERATIVES
The table following, giving the turnover of the important groups

of cooperatives for various years, indicates the prominent position of
these societies in Finland's economic life.
13
ACTIVITIES OF COOPERATIVE SOCIETIES IN FINLAND
[In thousands of marks 1)
- Loans by Turnover
Year *::::::
societies
*|...:
dairies
.
tive land . societies
. . turnover
. Total
banks (estimated)
5,000 3,500 41 300 8,841

10,800 10, 500 549 1,500 23, 349
56, 200 34, 300 3,300 12,000 105,800
1, 450, 100 270, 800 18, 200 90,000 1, 829, 100
2, 199, 200 540, 800 151,700 200,000 : 3,091, 700
2,381,900 697, 700 206, S00 300,000 3, 586, 400
2, 558,800 | 705, 200 356, 400 400,000 | 4,020, 400
1 Average exchange value of the Finnish mark for the respective years was: $0.193 in 1903, 1905, and 1913;
$0.0342 in 1920; and $0.0252 in 1925 and 1926.
In the important groups of cooperative societies there are a num

ber of outstanding central organizations. The following are the
leading centrals, in the order of their organization:
Cooperative Land Banks’ Central Credit Institute (Ltd.) (Osuus
kassojen Keskuslainarahasto O/Y.).-Founded in 1902 as the central
society of the rural banks.
Cooperative Wholesale Society of Finland (Suomen Osuuskanſp
pojen Keskuskunta, or “S. O. K.”).-Formed in 1904 as an advisory
body, but in June, 1905, began to engage in wholesale trade. It is
the largest and best known of the central commercial cooperatives in
Finland and conducts banks, insurance companies, and newspapers,
in addition to shops, mills, and factories.
“Hankkija ” ('entral Agricultural Supply Society (Aſes/usosuus
like Hankkija).-This wholesale society, started in 1905, distributes
agricultural machinery, equipment, and supplies: sells the produce of
its members, arranges credits, and by means of power-plant installa
tions, a seed improvement and testing station, and education of
farmers in the proper use of agricultural implements, seeks to promote
modern farming methods.
Central Butter Easporting Society “Jºaſio’’ (Jºoſ, wie, /?-Osuus/7//e
'alio) –Formed in 1905; sells butter, cheese, and other products
made by its affiliated societies, which constitute the majority of the
cooperative dairies.
Labor Society (Centralamde/s/ageſ Labor).-A central wholesale
society, founded in 1906; similar to “Hankkija ” but smaller: works
mainly among the Swedish population. Hankkija and Labor to
gether enjoy practically a monopoly in the sale of agricultural ma
chinery, equipment, and supplies in Finland because of their relative
size and importance in comparison with the smaller independent im
porters and dealers. Their establishments for the sale of these prod
ucts are scattered throughout the country and they work closely with
the cooperative rural credit banking societies.
Cooperative Wholesale Association (Osuustukkukauppa, “ O. T.
K.”)—Formed in 1917 by 112 cooperative societies which broke
100030—30—3
14
away from “S. O. K.” and established a central society of their own;
its functions are similar to those of “S. (). R.,” though the two so
cieties have an agreement whereby the articles they handle are, as far
as practicable, complementary rather than competitive. The “O.T.
K.” also conducts savings banks, as well as schools for the education
of employees along special lines, but does not operate an insurance
company.
('enfral ('attle Society of Finland (Suomen Karjakeskuskunta),—
The central organization of the cattle and meat selling societies,
founded in 1918.
Emiſſheten Society (Andels/aget Enigheten).-Formed in 1918, af
filiated with it are most of the cooperative dairies of the Swedish
speaking population.
Forest () ºrners' Timber ('o. (Ltd.) (Metsänomistajain Metsäkeskus
O/Y).-Founded in 1921 as a central association of cooperative saw
mills and individual forest owners.
Muna /º/ſ/ /ºrporting/ Society (Tien fi/ºunta Muna).-Founded in
1921 as the central organization of the egg-selling societies. It buys
eggs in the country and sells them domestically and abroad, but uses
no refrigerating plants.
As previously stated, these central societies dominate the wholesale
and retail trade of the country. The table following, giving the sales
and capital of the leading organizations in 1913, 1920, and recent
years, shows their rapid growth and their prominence as merchan
dising channels in the country.
ACTIVITIES OF LEADING COOPERATIVE ("ENTRALS IN FINLAND
[In millions of marks]
1913 1920
Nanne of central ---- ---- -
Sales | Capital Sales | Capital Sales | Capital Sales | Capital
Cooperative Wholesale Society |
(S. O. K.). ------- . . . .-- - - .0 2.1 64.4 | 848. 0 || 75.7

“Hankkija” ("entral Agricultural
Supply Society (wholesale) ... ----- 6.2 .. 5 16. 1 310.5 21.3
Labor Society (wholesale)- - - - - - 4. 6 1.0 2.6 98.1 3.1
“Valio” IButter Exporting Society - - - 21.2 . (5 16.2 || 656.8 18.2
Cooperativo Land Banks; Central
Credit Institute (Ltd.). . . . . . . . -- .4 58.4 || 1 685. 0 62.8
Cooperative Wholesale Association
(G. T. K.) ........... . . . . .....' " 2 3.5 5 49.1 600. 5 58.1
Central (‘attle Society... . . . . . . 3 1. 1 2.3 77.8 2.7
Forest ()wners' Timber Co. (Ltd.) --- - - - - - - - - - - 12.2 102.9 12.7
1 Loans granted. 2 Report for 1918. 3 Report for 1919. 4 Report for 1922.
Note.--The turnover of “S. (). K.” during 1928 totaled 1,003,400,000 marks; of “(). T. K.,” 813,500,000
marks; of “Valio, 659,200,000 marks; of “Hankkija, 377,500,000 marks. Loans granted in 1928 by the
Central Institute for the credit societies totaled 804,900,000 marks.
In addition to the central societies there are a number of coopera

tive unions, some of a general and some of a special character, the
work of which consists largely of carrying out a country-wide pro
gram of education in cooperation; they also occupy themselves with
1.)
organization and representation work. There are, besides, numerous

cooperative societies of this type that are not members of national
central organizations, conſining themselves to a single town or rural
area; a typical example is Osuusliike Elanto, which operates in the
city and suburban districts of Helsinki, and includes many producing
and selling establishments.
The experience of the cooperatives has been found so satisfactory
that a number of large department stores have recently formed co
operative purchasing offices, but chain stores in the American sense
do not exist in Finland. The development of the chain system in
Finland is made difficult if not entirely impractical by the strength
of the cooperatives, the opposition of independent traders, the gen
erally low purchasing power, the scattered population, the difficult
communications, and lack of capital.
INDUSTRIES
Industrial enterprises of any magnitude were not developed in

Finland before 1870, when the serious exploitation of the large forest
resources began. These industries developed steadily as the exten
sion of railways opened new sections and as water power was further
utilized. Finnish industry has always suffered from lack of capital
and, as it was not possible to obtain large sums from private in
dividuals, it became necessary to appeal to a large number of small
investors. This brought joint-stock companies into existence, which
even to-day are typical of Finnish industrial activity, accounting for
more than 85 per cent of the industrial workers and 86 per cent of
the output.
Finland in general has a satisfactory supply of labor, though in
recent years industry at times has suffered from some uncertainty in
the labor market. Finnish industries have shown themselves en
ergetic and progressive; new technical ideas have been adopted with
comparative rapidity and output has risen in both quantity and
quality. -
. At the outbreak of the war Finland's industries were firmly estab

lished and enjoying a moderate growth. The war suspended activi.
ties, but upon the subsequent establishment of stable political and
economic conditions, industry was rehabilitated and reorganized.
The growth that has taken place since, particularly in the past five
years, is a noteworthy achievement.
The number of workers employed in industry at the end of 1927
was 159,140, an increase of nearly 46 per cent over 1913, while the
gross value of production in 1927 ($312,000,000) was more than
double that in the pre-war year. The value added by manufacture
represents nearly half of the total gross value of production.
. The table following shows the activities of Finland's industries
Since 1910.
16
INDUSTRIAL PROGRESS OF FINLAND
Gross value of pro

duction 1
Year
Enter
prises Workers
Million Thousand
marks | dollars 2
4, 106 92,928 612.5 117,478

4,709 || 109,238 750. 0 , 400
5,024 106,097 702. 1 132,205
4,098 82,471 2,065.4 , 500
2,535 93,765 2,809.0 180,338
2,920 117, 229 6, 167.7 210,935
3, 141 | 120,317 | 6,533.8 125,449
3,294 || 132,842 | 8,085.4 174,645
3,293 || 143,311 || 9,156.3 245,389
3, 212 139, 429 9,345. 1 234,562
3,317 | 141,005 || 10, 126.2 255, 180
3,526 || 149,367 || 10,942.9 275,761
3,789 159, 141 12,381.0 312,001
(3) (3) 413,500.0 || 4 340,200
1 Of the gross value of production, the value added by manufacture totaled 5,409,000,000 marks
($136,300,000) in 1926; 5,805,000,000 marks ($146,300,000) in 1927; and is estimated at 6,300,000,000 marks
($158,760,000) for 1928.
2 Conversions made at the average rate of exchange for each year.
8 Figures not available.
* Estimate. ww.
Although the figures in the table reveal a pronounced industrial

growth, a number of factors have militated somewhat against a
greater expansion. The abnormally heavy burden of taxation on
industry and the shortage of capital have obstructed progress, and
the fact that a number of the important items, such as sawn timber,
pulp and, to a lesser degree, paper are subject to keen competition
and fluctuating markets and prices have not only retarded further
growth but in recent years have forced a curtailment of output in
order to maintain satisfactory conditions.
Finland's industrial branches can conveniently be grouped in two
classes: (a) Export industries—sawmilling, plywood, and pulp and
paper; (b) industries producing mainly for the domestic market—
textiles, metal, leather, foodstuffs, chemicals, and others. Activities
of the important branches during 1927, with the value of Finnish and
foreign materials used and the gross value of output, are listed in
the following table.
INDUSTRIES OF FINLAND IN 1927
Workers Value of raw materials

Ent Horse- used
ed (1,000 marks)
marks º: º
£nter- - - - - ---
Class of Industry prises wages -----| power
paid.º.º. Ol produc
tion (1,000
Number §§§ “employed Finnish Foreign marks)
marks)
Mining------ 2 206 2, 442 815 ------------|------------ 3,412

Foundaries, e 176 4,076 50,002 12, 244 65, 600 79, 349 279, 114
Mechanical wor 427 18, 585 309,089 30,752 123,576 273,596 952, 173
Instruments and appa- |
ratus------------------- 13 228 4, 339 160 1, 555 1,916 12, 143
Stone, clay, and glass- 365 10, 500 138,542 23,051 66, 569 43, 876 506,759
Chemical.------------ -- 53 1, 958 19, 57.1 3, 171 35, 676 : 30, 249 145,626
Tar, oil, rubber, etc.------ 63 1, 525 23,054 4,422 38,080 114,768 238,671
INDUSTRIES OF FINLAND IN 1927—Continued
- Value of raw materials

Workers used (1,000 marks)
Ent IIorse- º:
value
Inter- -- - - -] power — of produc
Class of Industry prises wages paid.º.º. tion (1,000
Number "º", employed Finnish Foreign marks)

marks) | -
Leather and tanning:

Tanneries, etc.-------- 64 1,070 16,607 4, 161 30, 259 119,821 187,050
Boots and shoes- 55 3,987 51, 800 1,614 70,701 95,075 266, 835
Other---------------- 34 975 10,690 546 14, 208 20,933 | 63, 852
Total leather and - :

tunning---------- 153 6,032 79,007 6,321 236,729 |
115, 168 517,737
=== = ====
i
t
[], ſº
87, 998 | $, ºil
21,474 29, 606
7, 256 99,786
188,660 218,490
449,663
13,079 13, 413 8, 855 4S, 488
19, 178 20,221 33, 848 108,304
27, 773 30, 626 38, 409 118,020
35,089 | 53,774 73,095 223, 112
Total textile-------- 273 21,877 224, 272 - 163, 896 442,653 1, 196,986
- Paper and pulp: i |------ -— –– - - - - ------
Mechanical pulp an l : -
board--------- --- 52 3,817 45, 402 100, 683 130, 450 3, 627 327, 700
Chemical pulp------- 29 6,314 96, 717 41,936 358, 317 81, 531 978,441
Paper and manufac- | |
tures--------------- i 28 4,989 61,996 53, 803 360, 520 40, 174 782,740
Other---------------- i 80 2,664 30, 190 1, 586 40, 837 9, 359 121,015
Total paper and | - |

ulp-------------- 189 | 17,784 234,385 198,008 890, 133 134,691 : 2,209,806
Lumber: | i —— - -- - -- -----
Sawmills------------- | 608 45,003 517,407 1, 844,021 16, 588 2,867,293

Plywood. -- -- 14 , 3,674 45,993 80,862 14, 775 180, 446
Furniture, etc.------- 157 . 3, 209 47, 157 . 38, 7.17 12, 640 , 146,008
Bobbins and spools--- 11 1, 831 16,078 25, ()-S (536 63,342
Other---------------- - 139 3, 198 : 39, 801 152, 60S 7, 12S . 233, 101
Total lumber------- | - 2, 141, 206 51,767 3,490, 100

Foodstuffs and luxuries: I ------ --- - -- - - - - ------- - -
Sausage factories----- 93 718 14, 402 (1) 108,821 5,040 145,386

Flour mills - 44 386 5, 381 5,972 60, 756 245,886 311,012
Bakeries-- -] 174 2,442 35,762 (1) 70, 565 133, 206 315,456
Sugar reſin - - 5 761 13.029 2,728 48, 564 209, 846 . 342, 582
Confectionery-- -- 29, 1, 378 14, 812 1,233 (), ()\!) 43,432
Margarine.----------- 14 254 83, 102
Spirits and beverages- 5 . 187 8, 756
Tobacco-------------- 9 2, 122 170, 700
ther---------------- 154 ! 2,281 155, 517 294, 251
Total foodstuffs and |

luxuries---------- 527 10, 529 186, 251
Lighting and power------| 411 3,306 55,993 43.8 270 36 3s,313
Graphic----------- 183 5, 187 101,613 4, 106 82,492 8, 130 240, 460
All other industries 25 433 : 7,438 368 4, 869 3, 450 17, 251
Grand total.-------- 3,780 | 159, 141 2,058,547 -

499,702 | 4,000.619 || 2 Assisi
:
12, 380,974
:
| Figures not available.
EXPORT INDUSTRIES
WOODWORKING
. Woodworking is by far the most important, branch of Finnish

industry, and its output is chiefly for export. The important wood
products, in addition to sawn lumber, are dressed lumber, plywood,
spools and bobbins, box shooks, building materials such as doors and
frames, and wooden furniture. The value of wood-product exports
in 1927 reached 3,711,000,000 marks ($93,517,000), or 59 per cent
18
of the value of total exports, but fell to 3,481,000,000 marks ($87,

721,000), or 56 per cent of the total in 1928.
Finland’s woodworking industries are naturally concentrated in
the important river basins, on account of the timber-floating facilities
and the availability of water power. The important centers are on
the Kymi River around Kotka in the vicinity of Helsinki, on the
Vuoksi River at Tampere, and on the Saimaa system around Viipuri.
SAWMILLING
Timber cutting is carried on principally during the winter months,

largely by agricultural workers released from the farms. With the
arrival of the spring floods the logs are floated down the smaller
streams, rafted across the lakes, and carried to the sea by the larger
rivers. Here the rafts are broken up and the logs delivered to the
various mills according to the marks, and are there cut into deals,
battens, and boards. The principal concentration points, and there
fore the leading ports of timber export are Viipuri (21.2 per cent
in 1927); Kotka (13.8 per cent); Pori 7 per cent); Kemi (6.9 per
cent); Oulu (6.7 per cent); Loviisa (5.6 per cent); and Rauma
(5.4 per cent).
In 1927 there were over 600 sawmills in operation, an increase of
more than 70 per cent over 1913, employing 45,000 or nearly 30
per cent of all industrial workers. The output of sawn lumber for
export prior to the war was between 800,000 and 900,000 standards
(1 standard=1.980 board feet). After the war, production increased
fairly steadily until 1927 when it amounted to 1,283,000 standards,
but in 1928 it was curtailed to 1,147,000 standards.
P//wood.-The plywood branch, which depends upon the exten
sive birch forests for its raw material, is a comparatively recent
addition to the Finnish woodworking industries. Large quantities
of plywood are exported to India and England for the manufacture
of tea chests, and it is used domestically in the manufacture of cases,
trunks, furniture, etc. In 1921 exports totaled only about 10,000
tons, but since that time the industry has expanded rapidly until
in 1928 exports amounted to nearly 83,000 tons valued at 227,000,000
marks. Finland is to-day the world's largest exporter of plywood
and veneer.
Bobbins and spools.-The bobbin or spool industry also uses birch
as the staple raw material. This branch occupied a prominent posi
tion before the war but on account of the reduced demand for wood
spools it has not regained its former importance. The pre-war
average of exports was about 10,000 metric tons (7,500,000 gross),
but during recent years exports have been around 6,000 tons (about
4,500,000 gross) with an average value of about 60,000,000 marks.
Finland still maintains a dominant position in the international
spool trade, supplying no less than 80 per cent of the world exports
of finished spools. The principal markets are Great Britain, Ger
many, I86lgium, France, and Brazil.
PULP AND PAPER INDUSTRIES
The pulp and paper industries have come to occupy a prominent

position in Finland's industrial life. Before the war the large
Russian market was the principal outlet, but with the collapse of
that market the plants had to be reorganized to meet the require
19
ments of other European consumers. Since 1919 a steady expansion

has taken place, especially in the past five years when this branch
has grown more rapidly than any other Finnish industry. The
pulp and paper mills to-day are large, modern, and efficient and are
capable of greater capacity as demand increases.
It is frequently quite diſficult to draw a distinct line between the
pulp and the paper interests because of their close relationship and
interdependence. They are, in fact, very often found together and
frequently form part of a large sawmill, the sawdust and waste
timber being used in the manufacture of pulp. This vertical devel
opment of industry in Finland has been particularly noticeable in
recent years, and has the advantage of minimizing a company's
dependence on a single commodity.
Mechanical pulp.–The 52 ground-wood mills operating in 1927
employed nearly 4,000 workers. The raw material used is almost
exclusively spruce, especially waste tops or timber of small dimen
sions. The wood cut into small lengths is disintegrated by means
of heavy pressure and running water. Mechanical pulp for export
is steam dried; the so-called wet pulp, which has been merely
pressed and contains about 50 per cent water, is used chiefly as raw
material by the paper mills. The mechanical-pulp and the card
board industries are generally considered the same. Production in
1927 amounted to 282,400 metric tons (dry weight), valued at
328,000,000 marks.
Exports in 1928 amounted to 137,700 tons, an increase of 37 per
cent over 1927. The principal markets are Soviet Russia, Great
Britain, and France. The output of cardboard was 15.500 tons in
1927 or only about 80 per cent of that in 1914.
Chemical pulp.–The cellulose mills use various chemicals in reduc
ing the wood to pulp; the principal processes employed are the sul
phite, or acid, and the sulphate, or alkaline. The wood, mainly spruce
tops, is cut into chips and boiled in large digesters under steam pres
sure. Necessary chemicals, such as sulphur, lime, and sulpha i e of
sodium, are imported. Considerable progress has been marie recently
in the reclaiming of base chemicals and the recovery of turpentine,
resin, and ethyl alcohol from the waste liquid taken from the digest
“is after the boiling process. The 29 mills operating in 1927 en
ployed over 6.300 worker, and the value of the output was 97.8.0.0.000
marks. The total output of all chemical pulp in 1928 amountel
to $1200 metric tons as against 495,000 metric tons (dry weight) in
1927, or more than four times that in 1914. Of the total production
* 1927, sulphate pulp accounted for 116,000 tons and sulphite pulp
for 379,000 tons. -
Exports of chemical pulp totaled 363,600 tons in 1927 and 473,000

tolls, in 1928, of which 359,000 tons was sulphite and 114.000 tons
sulphate. Exports were valued at 941,000,000 marks in 1928, or
bout 15 per cent of total Finnish exports. The principal markets
fºr sulphite pulp, in order of importance, are Great fritain, the
United States, France, Soviet Russia, and Belgium: those for sul
phate pulp are the United States, Germany. Great Britain, France
and Belgium. The sulphite mills supply large quantities of high
ºrale pulp for the manufacture of rayon, and plans are under way
fºr the establishment of a rayon factory in connection with one of
the larger mills.
20
Paper—The paper mills, occupied mainly in finishing the output

of the pulp mills, are generally connected directly with them; they
are engaged largely in the manufacture of newsprint in rolls but
produce also kraft, cigarette, parchment, and wall papers. In 1927
there were 28 paper mills, employing about 5,000 workers. Paper
production, which in 1914 totaled over 163,000 metric tons, had
increased by 1927 to nearly 282,000 tons valued at 783,000,000 marks
and in 1928 to 305,000 tons, of which 191,000 tons were newsprint.
Exports in 1928 were valued at 706,000,000 marks, as compared
with 682,000,000 marks in 1927. The principal markets for news
rint are Great Britain, Soviet Russia, the United States, Argentina,
K. and the Netherlands. Great Britain and Germany take most
of the wrapping paper and Soviet Russia, Great Britain, Germany,
and the United States take most of the other paper shipments.
1°FOIDUCTION OF LEADING INDUSTRIAL PRODUCTS
[In thousands of units]
Product 1914 1920 1927

l
Pig iron 9.9 9.5 11.9

Wire - | 4. () 2.4 5.1
Engines, combustion. - - | .. 5 1.2 3. 1
----do---- 76, 454.8 66, 169.7 95, 718.0
Sulphuric acid -- - - ---ton-- 1 (1) 10.5
Superphosphate . } s: 21% 0
,210.0 ||
(1) 7
368,657.0
0S 19.7
508,666.0
-n aw
Matches------- - - - - - ~~~~ (ºr )()xes - -
- - - - - - - - - - - - - - - - - - - - - - - - - 1, 787.5
Oilcake, linseed ---------- -kilos--, 2,810.6 2, 317. 5 1,903.1
Rubber footwear - - - - - - -pairs-- . () 1,329.2
Shoes --------- - - 2,400.6
Wool yarn--------------------------------------. ilot 2, 672.7 *6
: ºval fabrics---..
Wool fin ºr irºs ----------------------------- { -:
1, 457.2
180. 4 2
2,265.0
Cotton yarn---------------------------------- - kilos - --- - 5, 982. 0 : *
- : as
Cotton fabrics- - - - - - - - - - - - - ----------- …{i. Inet or - - 3,738.5
1,449. 9 14, 743. 1
347.2 2
6,378.8
Line11 yarn . . . . --- - - –CIO - - - - 816. 7 765. 1 578.4
Ilinen fabrics - - - - - - -do---- (2) 554.2 . 434.4
Mechanical pulp, dry ---ton -- 41. 7 39.3 58.2
Mechanical pulp, wet ". -do -- 101.1 112.3 224.2
Cardboard.-------- - - - - do----, 57.3 23.6 45.5
(*hemical pulp-- do - - 138.8 170.9 495. 1
Sulphate-------...- -do. . . . 55. () 51.4 116.1
Sulphite- - - - -do---- 83.8 119.6 378.9
Bleached -- --- -do---- 30. 1 16.3 47.7
Unbleached, wet . . ... do-- . 31.7 38.5 331.2
Unbleached, dry - . . . . . . ---do. 19. 1 (54. 7 -
Paper, now sprint - - - - - - -

Paper, other --
- -
- - . . do
(lo - 153. 4
).).
{ 96, 1
13. 1
-
87. I
186.9
94.7
Wall paper - - - - - . . . . . -rolls | - - - - - - - - - - - - 3, 877. 5 1,995. 6 3,001.6
I,umber, undressed.---- - - -standard. - 6()2.4 43(). () 1, 069. () 1,095. 6
Planks (deals) - - - - ---do. . . . 69. 6 87.5 132, 6 152.0
Battens- .do---- 155.5 96. A 26(). (; 247. 4
Scant lin -do--- 85. () 52.7 105.9 209.8
Roard - - - -do---- 283.6 183. S 468.5 475. 1
Spars -- - - - - - - - - - - - ---do---- s. 7 9.6 . : 1.4 11.2
Lumber, dressed -. - -do---- 24. (3 34.4 32.6 47.3
lank - do - - - .. 5 6.6 .. 8 1.8
Rattens- - - - do --- 1.5 4. 2 2. () 2.9
Scantlings. ------ - - - - - - -do---- 1. 1 1. 8 2.0 2.8
Boards. -- -do --- 21.4 21.9 27.7 39.8
Bobbins ------ ---------...---. -- 7,690. 5 Iºss.
4, 371.6 4,901.0 4, 451.6
Sugar------ - - --. ---kilos-- 31, 229.2 25, 322.3 40, 770.7 35, 245.0
Conſectionery . . . . . -do---- (: (2) 2, 465, 8 3, 164.5
Margarine- - - - - - - - - - ---do---- 628.4 2, 159.5 6, 511. 1 8, 448.4
Cigars------------------------ --number -- 68,092.0 20, 111.0 20, 878.0 20, 956.0
Cigarettes. ------------------------------------- do----|1,776,534.0 |2, 786, 273.0 ń. 025,650.0 3, 425,002.0
|
! Not classified.
2 Not available.
* Figures in table are the dry weight.
NOTE.-The tonnage figures are of the metric ton of 2,205 pounds; 1 kilo equals 2.205 pounds; 1 meter
equals 39.37 inches; 1 standard equals 1,980 board feet.
21
DOMESTIC INDUSTRIES
Other Finnish industries produce almost entirely for the domestic

market. As Finland is relatively poor in natural resources these
industries must import a large part of their raw materials, and this
factor has in a large way prevented them from extending their
markets beyond the borders of the country. Before the war many
of these industries were able to export substantial quantities of
their products to Russia, but with the loss of this market they were
compelled to increase home consumption. They are able to supply
a large part of the domestic demand, but competition with imported
goods is severe, and frequently domestic products have to be sold on
a small margin of profit.
TEXTILE INDUSTRY
The textile industry, one of the oldest in the country, supplies

about two-thirds of the local demand. The number of workers in
this industry had increased from 15,000 in 1913 to about 22,000 in
1927. This industry includes the manufacture of cotton, wool, and
flax yarns, thread, fabrics, and knit goods; the establishment of a
rayon factory is planned. The spinning mills are dependent on
foreign raw materials but the knitting and weaving mills use yarn
of local manufacture.
The value of the output of the textile industry has fluctuated
somewhat from year to year, increasing, however, from 399,100,000
marks ($25,620,000) in 1919 to 1,250,000,000 marks ($31,500,000) in
1928. The consumption of electrical energy increased from
25,700,000 horsepower in 1919 to 36,700,000 horsepower in 1927. The
raw materials consumed in 1927 by the principal branches totaled
9,000 tons of raw cotton, 10 per cent more than in 1913; 1,100 tons
of flax, less than half of that in 1913; and 3,100 tons of wool, nearly
30 per cent more than in the pre-war year. At the present time the
value of raw materials makes up slightly more than half of the gross
value of production. Imports of finished textiles and clothing into
Finland have ranged between 450,000,000 and 650,000,000 marks,
about one-third of the country's needs. Small quantities of certain
products, such as sailcloth, rope, etc., are exported, but the value was
only 15,500,000 marks in 1927. The textile industry ranks fourth
among the industries of the country; in 1926 it employed 13.5 per
cent of industrial workers, using 8 per cent of total machine power,
and accounted for 9.5 per cent of the gross value of production. It
is concentrated in the Tampere district, in the southwestern part of
the country.
METAL INDUSTRY
At one time Finland had an important metal industry using the bog
and lake ore found in large quantities, and also good quality ore
from Sweden which was admitted free when Finland and Sweden
were closely allied. When Finland became an autonomous part of
Russia, the ore imported from Sweden was no longer admitted free
and steps were taken to utilize more extensively the supplies of local
ore. The industry prospered and exported substantial quantities of
100.936–30—4
22
pig, bar, and cast iron, and hardware, mainly to Russia. With the
rapid development of the iron and steel industry in other countries
during the latter part of the nineteenth century, Finnish iron could
not compete, on account of the slow and costly process of recovering
the low quality ore from the lakes and bogs. The industry thus
came to produce primarily for local demand. At the beginning of
the twentieth century the local industry supplied one-half of home
consumption of iron and metal goods and in 1913 the gross value of
the output was about $14,500,000.
For a few years following the outbreak of the World War the in
dustry was active on Russian war orders, and in 1916 the gross value
of production was about $42,000,000. The industry suffered from the
postwar depression, but since 1922 steady progress has been made.
There were 23,100 workers employed in 1927, and the gross value of
production was about $31,500,000.
The metal industry, as operating at present, can be conveniently
divided into four groups, (1) mining, (2) smelting and metal refin
ing, (3) engineering, and (4) the production of finer manufactures.
The mining group is very small and unimportant, consisting of only
one copper mine and two zinc ore concentration plants. The smelt
ing and refining establishments accounted for 22.4 per cent of the
gross value of the output of the metal branch in 1927. This group
employed 4,100 workers and used 26,900 metric tons of ore, pig iron,
and scrap iron in 1927, of which about one-half was imported.
Engineering.—The development of engineering works has been
rapid and the gross value of production in 1927 was 952,000,000
marks ($24,000,000); 167.8 per cent of that in 1913. This industry
employed 18,600 workers in 1927 and used 19,600 tons of pig and scrap
iron and 31,900 tons of iron, steel, iron sheets, and crude castings.
The main branches of the engineering group are the foundries,
machine shops, shipyards, pipe mills, repair shops, and works for
manufacturing electrical machinery and apparatus.
The domestic machine industry at present supplies about two
thirds of the home demand for agricultural machinery and most of
the machinery for the sawmills.
Imports and eaſports.-In spite of the growth of the metal industry
the import of metal goods is still considerable. Imports have in.
creased rapidly during the last few years, owing to increased build
ing operations, the greater need for machinery, and large demand for
automobiles. Imports of metals and metal goods were valued at
925,100,000 marks ($23,300,000) in 1928, those of machinery and
apparatus at 601,500,000 marks ($15,200,000), and those of means of
transport, mainly automobiles, at 472,700,000 marks ($11,900,000).
Each of these categories shows large and consistent gains in recent
years. Imports of bar and shape iron totaled about 97,000 tons
in 1928, nearly three and one-half times as large as in 1913, while
imports of sheeting, etc., are more than double.
Exports of articles produced by the metal industry have been re
latively insignificant, those of metals and metal goods amounting, in
1928, to 19,000,000 marks ($479,000), and of machinery and apparatus
to 18,300,000 marks ($461,000). Cream separators are one of the
leading export items.
23
FOODSTUFFS AND TOBACCO INDUSTRIES
The industries engaged in the preparation of foodstuffs, confec

tionery, and tobacco are almost entirely dependent on imports for
their raw materials. In 1927 they comprised 527 enterprises with
10,500 workers and their production had a gross value of 2,186,000,000
marks ($55,400,000), nearly equal to that of the paper and pulp in
dustries. The tobacco factories, numbering nine important estab
lishments, imported over 3,000,000 kilos of tobacco in 1927 for the
production of 3,425,000,000 cigarettes, 20.956,000 cigars, and snuff,
pipe, and chewing tobacco to a total value of 415,000,000 marks.
In 1927 there were 44 mills producing flour, meal, etc., valued at
342,000,000 marks. Bakery establishments numbered 174 and their
output was valued at 315,000,000 marks in 1927. Four sugar refiner
ies refined 65,000 metric tons of imported raw sugar in 1927, the
output having a gross value of 305,000,000 marks. In addition there
are a number of slaughterhouses, sausage, margarine, confectionery,
alcohol, and yeast factories, breweries making weak malt liquors, and
other enterprises engaged in the preparation of foodstuffs for local
consumption.
CHEMICAL INDUSTRY
The chemical industry is rather small and unimportant, largely

because of the total absence of minerals, natural salts, etc. The
match industry is the leading member of this group, with an output
of 509,000,000 boxes in 1927, valued at about 100,000,000 marks. In
1927 exports amounted to over 3,800 tons, valued at 29,925,000 marks.
Exports go mainly to Great Britain and the United States. The
State operates a number of sulphuric-acid plants which are employed
also in the production of superphosphate; production has averaged
over 10,000 metric tons of sulphuric acid and 20,000 tons of super
phosphate during recent years. With the development of water
power, plans are materializing for the establishment of an electro
chemical industry which will be able to supply the larger part of the
country's needs of certain chemicals.
The tar, oil, and rubber factories are a small and rather unim
portant group, although the output supplies the bulk of local de
mand. A number of enterprises are engaged in the production of
tar and turpentine by the destructive distillation process. The fac
tories making soaps and candles are dependent on imported raw
materials. The rubber factories manufacture chiefly rubber foot
wear, of which 1,330,000 pairs were produced in 1927. There are also
a number of paint and varnish factories.
TANNING AND LEATHER INDUSTRY
The tanning and leather branch is a prominent domestic industry

and in recent years has been able to export substantial quantities
of its output, although it has felt, rather seriously, the effects of
foreign competition in the local market. In 1927 there were 64
tanneries employing 1,070 men: imports of raw hides, mainly from
South American countries, were valued at 120,000,000 marks, or
four-fifths of the total value of raw materials used. Some prepared
24
leather, is exported but the bulk of it is used by the boot and shoe
factories which also find it necessary to import large quantities of
prepared hides and skins. The gross value of the output of the
leather industry in 1927 exceeded 500,000,000 marks, of which the
55 boot and shoe factories, employing 4,000 men, accounted for more
than 50 per cent. There were 2,400,000 pairs of shoes produced in
1927. Exports of leather and products amounted to almost 2,500,000
marks in 1928.
OTHER INDUSTRIES
The stone, glass, clay, and peat industries are an important domes
tic group which, with the exception of the glass industry, rely entirely
upon local supplies. There were 365 enterprises, employing 10,500
workers, engaged in this group in 1927 and the gross value of the
output exceeded 500,000,000 marks. A good quality of granite is
found in Finland and large quantities are exported. Native lime
stone deposits furnish the raw material for the two lime and cement
factories with an annual capacity of more than 1,000,000 barrels of
cement. The brick industry has expanded in recent years through
greater use of bricks for building: the output amounted to over
95,000,000 bricks in 1927. A deposit of asbestos is worked for use
in the manufacture of tiles and other products. The manufacture
of pottery is of little importance but there are a number of factories
manufacturing tiles for fireplaces and stoves. The glass industry
is one of the oldest in the country and all kinds of glassware and
bottles are manufactured and supply practically the entire home
demand. Finnish crystal glass is well known for its high quality
and beauty and fairly large quantities are exported. The peat in
dustry is little developed as compared with its possibilities but
quantities are used as fuel in the tile, brick, and other factories.
LABOR, WAGES, AND LIVING CONDITIONS
TRADE-UNIONS
Workers in trade and industry at the present time number about

160,000.
Finnish labor is well organized and is a powerful influence in
political and social affairs. The trade-union movement expanded
rapidly after its inception, about 50 years ago, and about one-half
of the industrial workers are union members. A national organiza
tion was formed in 1907. In 1927 labor unions numbered 978 with
a total membership of 75,846. The organization of employers is a
later development. In 1905 a central association of employers was
formed, with which 15 employers associations were affiliated in
1927 with a total membership of 479.
LEGISLATION AND WELFARE
The Ministry of Social Affairs, established in 1917, is concerned

with labor protection, unemployment relief, labor exchanges, social
insurance, poor relief, labor disputes, housing, emigration, associa:
tions, and social statistics. The interests of labor, are well protected
under legislation providing the 8-hour day, free contract; un
employment insurance and benefit, sick, accident and other forms
of protection, old-age pensions, child-labor protection, and compul
sory mediation of disputes.
25
UNEMPLOYMENT
The structure of labor and conditions affecting the labor market

differ somewhat from those in other countries. Seasonal weather,
in particular, has a marked effect on the regular employment of
labor. Fortunately, Finnish labor is of the structure that permits
a change of occupation according to demand. The thousands of
men employed in agriculture during the summer find employment
in the winter and spring in the forests cutting, hauling, and floating
timber. Serious unemployment has often occurred during the
winter because of the cessation of shipping, building, and outdoor
work owing to the severe climate, but it has been relieved by open
ing relief works, arranging ordinary work to coincide with periods
of seasonal unemployment, by the establishment of labor exchanges,
and the carrying out of Government projects.
These measures have all aided in reducing unemployment to a
minimum and at no time in recent years has unemployment been a
serious problem. The number of idle workers varies with the season,
ranging from only 700 to 800 during the summer months to from
3,000 to 4,000 from November to February.
WAGES
Wages in Finland, although comparatively low, have advanced

steadily since the postwar years and real wages are now in general
above those paid in 1913. No official wage scales are available but
the hourly wage rates, as published for certain classes of workers in a
number of industries, are as follows: Forest workers, from 5 to 6
marks per hour ($0.126 to $0.15); painters, 13 marks ($0.33); chemi
cal pulp factories, 6.93 marks ($0.175); paper mills, 6.72 marks
($0.17); mechanical pulp mills, 5.86 marks ($0.15): machine shops,
7.03 to 8.30 marks ($0.18 to $0.21). Building trades: Carpenters,
from 8.50 to 9 marks ($0.21 to $0.23): laborers, 6 to 7 marks ($0.15 to
$0.18); electrical workers, 5.50 to 12 marks ($0.14 to $0.30); tinsmiths,
9 to 11 marks ($0.23 to $0.28); plumbers, 9 to 12.50 marks ($0.23 to
$0.315). Daily rates for male workers in the textile industry are
from 29.30 to 33.30 marks ($0.74 to $0.84) and those for female
workers are about 15 per cent lower. Daily wages for agricultural
workers, with board and lodging, are in summer, 24.52 marks ($0.62)
for men and 14.13 marks ($0.36) for women; in winter, 16.55 marks
($0.42) and 9.39 marks ($0.24); without board and lodging the corre
sponding figures are in summer, 36.6% marks ($0.92) and 22.81 marks
($0.57), and in winter, 28.13 marks ($0.71) and 17.48 marks ($0.44).
COST OF LIVING
The low-wage level is somewhat balanced by a comparatively low

cost of living, though the standard of living has advanced sºmewhat
during recent years. A cost of living index is calculated by the
Central Bureau of Statistics based on the period January to June,
1914, as 100. The items used in determining this index include food.
clothing, rent, taxes, and others. The cost of living index averaged
1,170 for 1924, 1,183 for 1926, 1,207 for 1927, and 1.233 for 1928. As
the present gold value of the currency is 13 per cent of its value in
1914, the index computed on a gold basis averaged 152. 154, 157, and
161 in the respective years.
-
26
TRANSPORTATION AND COMMUNICATIONS
Despite physical hindrances Finland has developed a rather

extensive system of communications throughout the country, and
many remote and sparsely settled sections are now readily accessible.
The inland waterways, augmented by canals, carry a considerable
volume of navigation and the numerous harbors of the long coast
offer excellent opportunities for foreign and coastal trade. Naviga
tion is maintained throughout normal winters by means of ice
breakers that keep the most accessible harbors open and free from
ice. The improvement of communications has done much to promote
agriculture and the general prosperity of the population as a whole.
INLAND WATERWAYS
The numerous rivers and lakes were early developed for transpor
tation purposes, with the deepening and widening of channels and
the construction of canals and locks around the rapids. The inland
waterways system comprises an aggregate length of about 47,100
kilometers (29,200 miles) of which about 41 per cent is in the north.
There are 21 canals totaling 35.5 miles in length, of which the
Saimaa, 20.8 miles long, connecting Lake Saimaa with the gulf of
Finland, is the most important. , Approximately 2,500 miles of the
total system are navigable for river craft. The Saimaa River and
canal system in the east, having Viipurii as the outlet, is the most
important and includes about half of the navigable mileage. The
Oulu River system in the north is navigable for a distance of only
about 155 miles but the entire system is important for timber floating.
The Lake Pyhäjärvi or Kokemäen River system in the west, empty
ing into the Baltic at Pori, has 450 miles of navigable channels.
The Lake Päijänne or Kymi system in the south central part of the
country has 475 miles of navigable channels. The administration of
the harbors, canals, and other waterways is under the jurisdiction
of the Board for Highways and Waterways under the Ministry of
Communications.
During 1926 some 50,800 vessels were used on the inland water
ways in handling 3,550,000 tons of merchandise, of which about
3.210,000 tons was timber and over 100,000 tons wood pulp. The
traffic through the Saimaa Canal has averaged between 900,000 and
1,000,000 tons in recent years. Gross receipts in 1926 from inland
navigation totaled 11.264,000 marks and expenditures 6,395,000
marks, leaving net revenue for the Government of nearly 5,000,000
marks. The value of Finland's canal network is estimated at 360,
000,000 marks (over $9,000,000).
SHIPPING AND PORTS
MERCHANT MARINE
Finland is dependent very largely on sea routes for the exchange

of goods and for passenger traffic. The importance to the country of
shipping is evident from the fact that 92 per cent of exports, 98
per cent of imports, and 95 per cent of foreign mails are seaborne.
A relatively large merchant marine is, therefore, essential to Fin
27
land and the present fleet of more than 500,000 net registered tons
is nearly 30 per cent above that in 1910.
The table following, giving the tonnage of various classes of
vessels, shows a steady decline in the use of sailing vessels and a
rapid growth in the use of steam vessels. It will be noted that the
number of steam vessels is lower than in 1920 but that the tonnage
of such vessels has steadily, increased, reflecting the general tendency
toward larger ships. At the end of 1927 Finland had 86 vessels of
500 to 1,000 net tons, 18 of 1,000 to 1,500 net tons, 9 of 1,500 to 2,000
net tons, 6 of 2,000 to 2,500 net tons, and 17 of 2,500 net tons and over.
MERCHANT MARINE OF FINLAND
[Vessels of 19 tons net and over]
Steam Motor Sailing Barges Total

Jºry t - -- - - - - - - - -
- Num- Num- | x- Num- J Num- I -- Num- I -- -
ber Net tons ber Net tons ber Net tons ber Net tons ber Net tons
-
i
—---|--|-- l
- - - - --
- —-i
287 49, 372 (1) (1) 2, 182 263, 160 (...) 20, 517 2, 469 333,049
468 71, 504 (1) (1) 2,851 261, 429 (2) 59, 860 3, 319 392, 883
809 88, 381 123 16,793 788 101,838 3, 185 277,059 || 4, 905 | 484,071
568 || 105,335 96 13, 204 543 83, 982 3,691 285, 967 || 4, 898 ; 488,488
547 | 109, 711 91 11, 224 520 8(), 742 3, 833 290,012 : 4,991 491, 680
558 130,367 103 13, 118 513 79,964 4, 160 306,965 5,334 J30, 414
535 | 130,294 107 13, 268 ; 483 ; 73,653 3,997 || 282,992 5, 122 500, 207
529 || 140, 537 132 14, 714 | 377 67,916 || 3,992 || 282,628 | 5,030 505,795
! Included under steamers.

*Included under sailing vessels.
Finnish steamship companies maintain regular passenger services

to the principal ports of Great Britain and the Continent. As only
24 per cent of imports and 12 per cent of exports were carried in
Finnish bottoms in 1927, the Diet passed a law on March 29, 1928,
enabling the Government, by means of long-term loans and subsidies,
to assist in a further development of the merchant marine of the
country.
SHIPPING TRAFFIC IN FINNISH PORTS
The activities of Finnish ports have increased steadily and the

total tonnage of arrivals and departures, at present about 10,000,000
net registered tons, is nearly double the average of the five years 1911
to 1915, as shown in the table following:
ARRIVALS AND DEPARTURES OF WESSELS
Arrivals - Departures
Year i –– ---- - - -- - - —- –
| Number Net regis- || Number Net regis
of vessels | tered tons of vessels' tered tons
!!!!-1915 (average).----------------------------------------- | 9, 533 || 2,575,542 9,636 2, 551, 976

1921-1925 average - 7, 546 3, 202,166 7,442 3, 194,363
1920 6, 533 2,499,630 6, 714 2, 497,604
7, 367 || 3,443,071 7, 243 3, 473, 186
7,682 || 3,886,730 7, 518 3,800, 825
7, 482 || 4,023, 286 7, 536 4, 121. 167
8, 497 || 4,807, 134 8,705 4, 923,057
8, 151 4,823,397 8, 291 4, 879, 459
28
Nationality of tonnage.—Germany leads with nearly 25 per cent

of the total shipping in Finnish ports. German tonnage has steadily
increased and in 1927 was nearly seven times the average of the five
years from 1911 to 1915. Sweden was in second place with nearly 17
per cent of the total tonnage, also a large increase. Finnish tonnage
accounted for about 16 per cent of the total as against about 40 per
cent during the pre-war years, while British tonnage, which has
nearly tripled, made up about 12 per cent of the total in 1927.
NATIONALITY OF TOTAL TONNAGE
[Net registered tons]
1911–1915, 1921–1925,
average average 1926 1927
Finland------------------------------------------------ 2,062,318 1, 151, 498 1,302,961 1,573,252

Sweden.----- 671, 724 1,000, 562 1, 546, 135 1,626,868
Norway--- 565,538 599,880 640, 572 686,892
Russia---- 504,188 5,464 |------------ 26,005
Germany - - - 372,278 1,703,883 2,054,035 | 2,489,734
Great Britain- 426,008 528,041 646,620 | 1, 170, 119
Netherland - - - 81,769 175,976 247, 634 315,340
Other countries 443,695 1,231, 225 | 1,706,496 || 1,841, 981
Total-------------------------------------------- 5, 127,518 6,396, 529 || 8, 144,453 || 9,730, 191
Origin and destination of traffic.—Over 26 per cent of the net reg

istered tonnage leaving Finnish ports in 1928 was destined to Great
Britain, followed by 18 per cent to Germany and over 12 per cent
to Netherlands. More than 25 per cent of incoming tonnage in 1928
was from Germany, about 14 per cent from Great Britain, and about
15 per cent from Sweden. The following table shows the countries
of origin and destination of shipping to and from Finnish ports in
1927 and 1928:
SHIPPING WITH WARIOUS COUNTRIES
1927 1928
Country of origin and Arrivals Departures Arrivals Departures

destination t
Number | Net
*. reg- || Number
Nr | Net
*. reg- || Number
Nr Net reg- Number | Net
*. reg
g
r , istered
of vessels tonS
... i istered
of veSSels tons r
of vessels
istered
tons of vessels
iStered
tons
|
Thou- | Thou- Thou- Thou

- sands | sands sands Samds
Great Britain-------- 927 900. 9 1,746 1,630.5 698 703.7 1,398 1, 287.5
Germany-- 1,484 958.4 1, 360 737.8 1, 717 1,200.3 1, 462 883. 6.
Netherland- 407 480. 3 597 632.7 339 391. 0 567 600. 6
Sweden.---- 2,333 840. 5 1, 729 396.1 2,035 764. 1 1, 586 437.8
Denmark-- 8 552. 3 508 121.2 664 416.3 495 135.9
Belgium - - - - - 185 150. 5 348 292.4 330 256.7 399 370.2
France------- - 70 72.4 299 265. 2 7 93.7 348 295.0
Estonia------ 1,279 143. 6 1,390 106.7 1,338 160.4 1,378 154.0
Russia------- 161 46.5 230 89.7 145 62.7 214 92.2
United States-- 62 192.2 64 | 185.0 66 192.6 68 189.3
Other countries------ 742 470.4 436 473.9 732 572.9 376 433.3
Total.---------- 8, 498 || 4,808.0 8,707 4,931.2 8, 151 4,823.4 8, 291 4, 879.4

29
PORTS
Of the many good ports on the Finnish coast the following are
the more important: Helsinki, Viipuri, Kotka, Turku, Hanko, Pori,
Tampere, and Koivisto. Of the net total tonnage, of 10,793,000 tons
of entrances and clearances at Finnish ports in 1926, 16.5 per cent
was handled through Viipuri, 14.6 per cent through Helsinki, 13.9
per cent through Kotka, 8.2 per cent through Turku, 5.6 per cent
through Koivisto, 5 per cent through Hanko, and 4 per cent through
Pori.
Certain Finnish ports are impoprtant as points of entry while
others are principally export ports. Helsinki handles more than 40
per cent of the country’s imports and Hanko and Turku are also
leading ports of entry. Viipuri and Kotka are the largest ports for
export trade; the former, with its outer port Uuras, is the largest
point of export for timber, handling in recent years about 500,000
standards annually. Kotka leads in the export of pulp and paper
together with wood goods from the Kymi Valley.
he absence of tides in Finnish waters has facilitated port devel
opment and the leading ports are well equipped for the handling of
various cargoes. In many of the ports of lesser importance load
ing and discharging is accomplished from lighters in the outer
waters, owing to the inadequate depth for large vessels.
Winter ports.-The severe winters, with accompanying heavy ice,
have always been an obstacle to the maintenance of year-round
shipping. This condition has to some extent been overcome by the
development of so-called winter ports, kept open by means of ice
breakers. This latter factor has been important in the development
of Hanko and Turku, through which practically all imports reach
the country during the winter months. The Government owns five
powerful icebreakers, used to keep channels and fairways open and
to convoy ships through the ice: no special charges are made for these
services, except in case of towage through the ice. Helsinki is also
kept open throughout normal winters.
With the exception of Hanko and Koivisto, which belong to the
State, all Finnish harbors are municipal property.
RAILROADS
Development of railways in Finland has been slow, owing to the

great extent of the country and the sparse population. Even to-day
large sections of the country, particularly in the north, lack rail
way connections but all of the cities and larger towns in the south
ern part of the country have railway service. At the end of May,
1929, the total length of railroads aggregated 3,257 miles of main
and branch lines, exclusive of sidings which at the end of the cal
endar year 1927 totaled 1,063 miles. The entire system, except for
234 miles owned privately, is owned and operated by the State;
121 miles of the State Railways are double tracked. The table fol.
lowing shows the position of the State Railways in 1927 and 1928 as
compared with 1913 and 1923:
“)
•)
STATISTICS OF THE STATE RAILWAYS -
- | i
Item 1913 1923 1927 1928
- - - ––
Length of line------------------------------- - - - - - - - - - - ---------- miles. 2,212 2,535 2,974 2,992

Locomotives-- -number-- 496 580 693 32
Passenger cars- --do 1, 140 995 | 1, 247 y
Freignt cars------ ---do. --- 14,732 15, 338 : 19,603 || 20,394

Passengers carried- - - - - - -thousands--' 18, 310 25, 424 22,083 23, 152
Freight carried - - - - -- 1,000 metric tons -- 4,933 8, 276 | 11,044 11,422
Gross receipts 1--- . . . - -thousands of dollars -- 11, 203 || 16,919 21,072 22,475
Passenger Service-------. ----------------- - - - - - - - - - - - - - - - - - - - - - - - - - 4,774 || 5, 679 6, 543 7,221
Freight service - --- - - - - - 6, 21 l ; 10, 750 13, 861 14,420
1 Including miscellaneous receipts not shown separately.
While the present railway system is not entirely adequate for the
country's needs, the large network of waterways supplements the
railroads, principally in the movement of freight. Recent Finnish
budgets carry large appropriations for a further extension of exist
ing lines. The supervision of railway construction and the adminis
tration of the State railways is entrusted to the Railway Board
under the Ministry of Communications.
HIGHWAYS AND MOTOR TRANSPORT
With the advent of the motor car, the levelopment of a satisfae

tory highway system became necessary. Motor-bus transportation
in Finland is acknowledged as a more satisfactory means of trans
port and communication, in the sparsely settled sections, than costly
and low-yielding railway lines. With the steadily advancing stand
ard of living in the country. Finland has become a good market for
motor vehicles. On January 1, 1929, there were 38.452 motor vehicles
registered, of which 22.903 were passenger cars, 8,769 trucks, 1,486
motor busses, and 5,294 motor cycles. The need for good roads led
to the taking over, in 1921, of practically all highways by the State,
and they are now under the Board of Highways and Waterways.
According to a recent survey, there are 28,334 miles of roads in
Tinland, of which 27 miles are of macadam and 28 miles of asphalt
or other bituminous surface. There is less than 1 mile of concrete.
The remainder is classed as sand, clay, gravel, etc. The construction
of highways in Finland is difficult, because of the large number of
lakes and rivers and the severe weather conditions, but much prog
ress is being made in their improvement and extension. At present
an emergetic “better roads campaign is meeting with considerable
Sllo'('GSS.
AVIATION
IDuring 1928 air service between Finland and foreign countries

was maintained on the following routes: Helsinki to Tallinn, Es
tonia; Helsinki and Turku to Stockholm, Sweden: Helsinki to Riga,
Latvia: and Turku to Stockholm, Sweden. The last mentioned is
new route, while the others were in operation in 1927. These lines
generally operate from May until the first of October and sometimes
later, depending on weather conditions, and also during the winter.
when steamship traffic is suspended on account of ice conditions. In
the course of regular traffic 246,000 kilometers were ſlown during 1928
(as compared with 214,000 during 1927), of which 195,000 were flown
31
by planes of the Finnish Aero Co. and 51,000 by those of foreign

countries. In 1928 there were carried 3,824 passengers (3,148 in
1927), 49,500 kilos of freight (39,000 in 1927), and 14,900 kilos of
mail (9,400 in 1927).
COMMUNICATIONS
POSTAL, TELEGRAPH, AND TELEPHONE SERVICE
These utilities, owned and operated by the State, are under the
supervision of the Ministry of Communications. In 1927 there were
2,891 post offices, which handled 260,086,000 pieces of mail; gross
postal revenues totaled 125.209,000 marks ($3.155.267). In 1926
there were 3,504 miles of telegraph lines carrying 8,758 miles of
wire; the number of messages sent was 1362,744. The telephone
system had 120,343 miles of wire and 98,556 instruments. Gross re
ceipts for both telegraph and telephone service amounted to 23,064,000
marks ($581,213). RADIO
The development of radio broadcasting anºl receiving has made

good progress in Finland. At the end of August, 1929, there were
91,943 receiving licenses in effect. There are seven broadcasting sta
tions; the largest and newest one is a 40,000-watt station located at
Lahti. There is a 500-watt Government-owned station at Helsinki
and a 250-watt station at Tampere. The Government has done much
to promote broadcasting.
FOREIGN TRADE
A rapid expansion in foreign trade has accompanied and contrib

uted to the economic development of Finland. Increased industrial
production, especially in the woodworking industry, the production
of butter for export, the improvement in means of communication,
the greater availability of money and the general increase of pur
chasing power, the growth of rural shopkeeping, and the opening of
Winter shipping have been reſlected in growing imports and exports.
e development of the foreign trade of Finland from 1901 to
1928 is shown in the following table:
SU-M MARY OF FOREIGN TIRA1xE OF FIN 1...AN 19, 13Y YEARS
[In thousands]
Imports Exports
- - - - - - - - _ _ _| Balance
Period or year (dollars)
Marks | Dollars Marks | Dollars
T-——— —- – -- -- - - - - - -- -* ------ -- - --- -- - - - - - -
§: ºverage).------------------------------
#;º. 250, 507 ||
473,710 ||
48,078
86, 270
| 40,942
59, 784
–7, 136
—26,486
tº averº).
---
4, 478, 161 |
3S4. 090
107,
7.
55%, 733
290, 142 || 108,902
55,649 || —+1, 836
18,019
4 404, 799 || 77,398 – 17,329
9 510. ś0 | 70. Già | –63,514
3, 626.479 2.926, 422 100,084 —23,942
4,715,467 4, 970, 603 || 124,762 +6, 404
5, 51%), 514 5, 140, 152 +1, 360
i 5,667, 708 5, (36,549 || 142,041 –785
6,385,881 i tº, 324, 372 | 159, 374 –1, 550
8,012,000 . 20.835 6, 245, 300 | 157, 382 —44, 543
32
IMPORTS
The increase in industrial production in Finland, during the last

few years, has brought with it a marked advance in imports, with
rising figures for all classes of goods. While the annual increase of
population was approximately 1 per cent, the total value of imports
rose, as compared with the previous year, by 7 per cent in 1925, 10
per cent in 1926, 17 per cent in 1927, and 24 per cent in 1928. (The
import price indexes for the period were, on a gold basis: 1924, 126;
1925, 137; 1926, 129; 1927, 124; 1928, 125.) In recent years imports
of goods for construction and production have increased much more
rapidly than imports of luxuries and articles of consumption. This
tendency is shown in the following table:
CHARACTER OF FINNISH IMPORTS
[In per cent of total imports]
Goods for Goods for

-
Year Goods for
production coºp. -
Year Goods for

production .ºp -
42.6 57.4 || 1926---------------------- 51. 7 48. 3

44.4 55.6 || 1927---------------------- 52.7 47.3
44.8 55.2 || 1928---------------------- 50.4 49.6
44.6 55. 4
The large increase in imports in 1928 and the slightly less favorable
proportion of production goods to consumption goods, as compared
with the two previous years, is accounted for primarily by the
increased building operations in both city and country districts (it is
estimated that in 1928 the number of rooms in Helsinki was increased
by about 13 per cent), which called for large imports, not only of
building materials but of goods of all kinds, as a result of greater
purchasing power produced by an increase in wages and a high ratio
of employment. Large imports of several important articles of con
sumption, such as coffee, sugar, and wheat flour, purchases of which
had been delayed to take advantage of lower import duties announced
for 1928, and considerable imports of cereals and cattle feed toward
the close of 1928, because of the poor harvest that year, also
contributed.
EXPORTS AND REEXPORTS
Since the establishment of normal conditions after the war, exports

have in general developed quite as rapidly as imports. In the period
1921–1927 exports even exceeded imports in value by about 2 per cent,
a remarkable showing in view of the fact that in pre-war years
Finnish exports were generally about 20 per cent less than imports.
(The export price indexes for five recent years were on a gold basis:
1924, 143; 1925, 146; 1926, 143; 1927, 143; 1928, 143.)
Finnish transit trade is relatively insignificant. Reexports in 1928
amounted to 54,699,000 marks, of which 15,846,000 marks went to Ger
many, 11,897,000 marks to Sweden, 5,469,000 marks to Estonia,
5 ſió,000 marks to Denmark, and 1,137,000 marks to Russia.
33
COMMODITIES ENTERING INTO FOREIGN TRADE
The following table gives in detail the composition of imports and

exports during recent years:
VALUE OF THE FOREIGN TRADE OF FINLAND, BY COMMODITY CLASSES
[In thousands of marks)
1920 1926 1927 1928
Class - - - |
Imports | Exports Imports i Imports : Imports Exports Imports | Exports
| --- -
1,073 1,561 1, 274 4,961 4,032 5,720 | 10,300 4,700

42, 111 70,382 139,268 530, 563 113,919 564, 810 160,000 512, 300
534, 198 |---------- 706, 551 | 1,446 653, 318 3,028 993,300 w
33,976 3,721 || 323,938 5, 603 || 266,046 7, 384 | 432,900 4,400

Fruits, vegetables, !
etc.-------- 59, 423 3,245 || 138,687 17,498 || 139, 463 20, 525 i 180, 200 17, 600
Colonial prod 522,429 863 479, 750 4, 166 622,001 5, 171 734, 500 4, 100
Conserves- 3,387 | 989 4,031 712 4,700 100
Beverages- 19, 808 1 18,076 . 37 15, 100 |----------
Spinning m 298, 974 . 1,302 304,388 663, 324,000 1,400
arms and ropes 99, 621 121 151,785 1,022 158,057 3, 558 193,600 2,400
Cloth--------- 191,026 448 || 360,071 10, 439 406, 741 10, 687 | 520, 100 10, 700
Other textile p - 64, 333 308 || 206, 744 874 239, 360 1, 186 305,600 1, 700
Timber and articles - |
of wood----- 15, 959 1,633, 350 33,040 |3, 153,211 29, 528 3,711, 102 66,200 || 3,481,300
Miscellaneous | :
manufactures------ 12,057 2,000 22, 341 5,700 30, 685 5,894 36, 500 9, 100
l
Board, cardboard, pa |
per, and manufac
6,311 1,080,664 18, 254 '1,628,728 22,072 1,677,880 25,000 1, 866,900
|
|
3, 940 1,052 19,895 2,713 22,811 2,767 25,000 3,000
! i ! -
121,895 38, 189 219, 508 || 115,458 275, 522 133,498 388, 100 | 127,300
520,813 4,792 614,686 15, 482 746, 542 i 15,809
l
t
925, 200 19,000
l l -
287,628 3,618 385, 368 17, 540 520, 207 | 14,477 601, 500 . 18, 300
Means of transport---|
Instruments, watches, 65,914 12,399 287, 665 2,618 384,638 5, 132 473, 600 4, 200
|
t
|
etc.----------- -- 14,762 4 54, 691 44 63, 500 110 83, 100 ----------
Minerals, - * ,
eto ----------------- 156,537 5,051 273, 673 24,051 390,023 : 24, 267 420, 700 27, 500
Asphalt, rubber, etc.--| 81,744 6, 536 144, 889 : 17,856 t 146,674 25,907 165, 200 22, 200
Oils, fats, waxes, etc.--| 196,983 1, 569 || 309,052 1, 153 328,741 803 386, 400 1,600
Ethers, cosmetics, etc. 5,300 2,623 8, 95 1, 401 9,431 785 11,800 700
Colors and dyes------ 43,848 186 54, 770 154 56,347 82 58,800 100
Explosives, firearms-- 9, 308 10,440 7,002 37,246 6,971 29,926 6,900 31, 400
Chemicals, drugs, etc. 169,454 1, 153 i 141,071 4,980 15.7% 6, 124 || ||73 || | 6,000
Fertilizers.----------- 21,402 ||---------- 132, 199 ----' 150, 452 2 143,700 100
|
Literature, art works- 17, 709 2, 188 46, 701 , 916 54,374 5,082 70, 200 4,000
Articles not specified | :
elsewhere---------- 8,027 639 62, 747 3,531 i 50,316 3, 361 77,100 4, 200
Grand total.---|3,625,4792,806,114 5,607,708 |5,615,826 0,385,881 6,286,507 8,012,900 6, 190,600

I -
Note.—Reexports not included.
Not only as regards extent but especially with regard to com

position, exports of Finland are more stable than imports. Its
timber resources constitute the mainstay of exports. Although
Some raw timber is exported, the bulk of this commodity leaves the
country in the form of various products of the highly developed
woodworking industry. Even before the war the wood and paper
groups accounted for over 70 per cent of all exports while in 1928
they comprised 86.5 per cent of the total value. While the exports
of wood goods fell off somewhat in quantity during 1928, exports
of the various products of the paper trade have continued to increase
34
steadily. In the agricultural group, butter has long been a con

siderable export and in 1928 contributed 7.3 per cent of the total.
Other exports, of which raw hides and cheese are the most important,
play but a small part and their combined value during the last few
years has amounted to less than 10 per cent of total exports.
As suggested, Finland's imports are more varied than its exports.
Several articles of general consumption, which can not be produced
locally or which are not yet produced in sufficient quantities to cover
the demand, bulk large in import value. In the former group coffee
and sugar together made up 7% per cent, and in the latter group rye
and rye flour and wheat and wheat flour 91% per cent of the total
imports in 1928. The cotton industry is, of course, entirely depend
ent on imported raw materials as is also to a large extent the woolen
industry, while the clothing trades import considerable quantities
of cotton and woolen fabrics in addition to the domestic textile
products employed. Of the total imports in 1928 textile raw ma
terials and fabrics accounted for about 9 per cent. Feedstuffs made
up over 5 per cent of the total imports in 1928, automobiles and
chassis for vehicles almost 5 per cent, and coal and coke and hides
and skins each about 2% per cent. The bulk of the remainder con
sisted of raw materials and semimanufactures for the metal and the
paper and pulp industries and for the building trades, and fertilizers,
mineral oils, and tobacco.
The leading items of import and export are shown in the follow
ing table:
LEADING ITEMS OF FINNISH IMPORT AND IºxpoRT TRADE
[Quantity in metric tons and value in thousands of marks unless otherwise specified]
1913 1927 • 1928
Commodity - - — — — — - - - -- --- |
Quantity | Value Quantity Value Quantity Value
- - -----
: |
Imports, total-----------------|---------- 495, 435 ------------ 6,385,881 ------------ 8,012,907
Rye--------------------------------- 65, 610 11, 154 111, 941 224, 427 165, 669 339,016
Rye flour--------------------------- 196,030 36,263 1, 691 4, 263 6, 325 13, 509
Wheat flour------------------------- 114, 136 33,704 83, 023 202,318 128,816 412, 984
Bran-------------------------------- 83, 821 11,708 | 55,843 83, 811 . 08,286 176,235
Oil-cake, oil-cake meal, etc.---------- 11, 582 2, 138 83, 780 156, 212 117,782 227, 403
Coffee------------------------------- 12, 869 22, 521 15, 27 265,092 18, 440 325, 353
Sugar------------------------------- 47,676 19, 110 66,668 227,885 92,067 276,044
Tobacco---------------------------- 4, 286 7, 760 3, 224 104,850 3, 347 105, 193
Raw cotton------------------------- 8,390 16, 780 9, 536 186,488 i 8, 993 194,339
Cotton fabrics----------------------- 1, 121 7,961 1,573 111,403 1, 9; 139, 976
Wool fabrics------------------------ 787 8,880 1,779 238,021 2,293 314, 274
Hides and skins, raw----- 5, 844 12,634 5,848 106,028 6,977 178, 804
Hides and skins, prepared --- 576 4,032 612 98, 536 | 686 117,014
Hot-rolled iron---------------------- 28, 457 4, 282 70,417 95, 399 | S6, 878 120, 384
Automobiles and trucks (number) - - (1) (1) 5, 823 203, 511 6, 701 242, 971
Chassis for vehicles (1) (!) . . . 3, 501 95,908 5,667 || 150,095
Coal and coke---- 585, 614 14, 884 1,033,717 218, 615 1,076, 434 198,916
Gasoline--- 2, 851 1,098 | 48,472 90, 550 55, 116 115,645
Fertilizers--------------------------- 32, 521 2, 444 191,050 150,452 177,691 143,659
Exports, total.--------------------------- 404, 799 ------------ 6,324, 372 !------------ 6, 245, 282
Butter------------------------------ 12,640 35, 270 15,076 474,844 13, 376 457, 615
Cheese- 1, 224 2,448 2, 949 53,735 1,648 33,229
Logs.------ 220,387 9,356 | 174,473 63,020 123,682 48,034
Mine props- 770,996 16, 365 792, 532 235,027 695,875 219,884
Pulpwood - - - - 215, 748 5, 343 | 699, 815 237, 419 645,364 236,294
Spars------------- 108,692 6,977 . 137,223 75,018 116,821 68, 565
Planks, rough - - - - - - - 217, 175 29, 708 | 234,001 281, 313 202,254 251,690
Battens, rough.---------------do III 507,796 52, 606 | 898, 859 | 1,014, 112 788,000 909, 150
! Not classified.
3.5
LEADING ITEMS OF FINNISH IMPORT AND EXPORT TRADE—Continued
[Quantity in metric tons and value in thosuands of marks unless otherwise specified]
1913 1927 1928
Commodity - -------- - ----———— ------- - ---
Quantity -
Value Quantity | Value Quantity Value
!
| -- - --
802,284 | 75,687
––––
1, 115, 120
1, 192,020 1,000, (79 ; 1,087, 606
1 (1) 40, 163 G(), 27.5 4:3, 593 66, 722
70,836 5,687 82, 190 83, 651 81, 634 77,714
-- - 3,701 192 56,839 | 63,053 48, 406
- - - - - - - - (1) (1) 40, 483 69,022 41, 842
------------- - 1 (1) * 57, 202 | 161, 501 82, 882
11, 322 6, 227 . 5, 888 63, 51() 5, 743
Mechanical pulp-- 49, 445 1,042 49, 690 108, 250 200, 563
Chemical pulp---- - 77,060 - . 381,640 8ſ)4, 020 502, 000
§§
Sulphate pulp--
pulp- - - - i
(1)
(1) 287, 646
93, 994 595, 501
208, 510 387, 121 |
114,978
Cardboard------...- - - - - - - 53,751 3S, 284) 77, 293 45, 248
Wrapping paper------...---...-...-- 66, 154 34, 718 125, 201 41,020
Newsprint.------ - - - -| - - - - - - 70,066 155. 446 {07, 244 171,564
All other paper. ---. --- - - - - - - - - - - - 9, 41 | 119, 947 31, 21 |
Hides and skins, raw -- . . . . . . . - - 3, 685 110, 627 5,084
| |
1 Not classified.
GEOGRAPHIC DISTRIBUTION OF TRADE
Practically half of Finland's trade, both import and export, is

with Great Britain and Germany. The United States and Sweden
contribute nearly half of remaining imports, while the bulk of re
maining exports is taken by Holland, Belgium, France, the United
States, and Russia.
Germany takes first place in Finland's import trade, supplying
37 per cent in 1928 as against 32.6 per cent in 1927. This trade
comprises principally metals and metal goods, cereals and their prod
ucts, colonial produce and spices, fodder and seed, machinery and
apparatus, cloth, hides and skins, and miscellaneous textile products.
Finland's principal purchases from the United States, the second
most important source of imports, are cereals and their products,
means of transport. spinning materials, and mineral oils. Great
Britain, which ranks third, supplies principally cereals and their
products, cloth, minerals, metals and metal goods.
Great Britain is Finland's leading export market, taking 35.3 per
cent of total exports in 1928 as against 40.2 per cent in 1927. The
most important British purchases are timber and wooden articles,
board, cardboard and paper, and animal food products. Germany.
the second most important purchaser, took 15.8 per cent of Finland's
exports both in 1928 and in 1927, the principal items being timber
and wooden articles, pulp and paper, animal products, furs, and
hides and skins. Holland held third place in both years, taking
largely timber and paper.
36
TRADE WITH PRINCIPAL COUNTRIES
Finnish Imports Finnish Exports
1927 1928 1927 1928

Country
Value Value Value Value

(i.n
marks) |.
of total (milliºn
marks) ..."
of total (milliºn
marks) ||..."
of total (milliºn
marks) ||.
|| 0
Germany------- 2,075.0 32.6 2,961.8 | 37.0 998. 6 15.8 987.8 15.8

United States 980, 6 15.4 1, 179.2 14.7 340.7 5.4 408.5 6.5
Great Britain-- 906. 5 14.2 990.4 12.4 2,538.7 40.2 2,206.0 35.3
Sweden.------ 523.2 8.2 657.4 8.2 193.8 3.1 138. 1 2.2
Denmark- 321.6 5. 1 321.2 4.0 142. 1 2.2 146.5 2.4
Holland--- 277. 9 4.4 374. 0 4.7 566.9 9.0 514.4 8.3
Belgium- 211.4 3.3 299.7 3.7 377. 9 6.0 468. 0 7.5
Russia-- 209.2 3.3 126. 1 1.6 3.18.8 5.0 268.6 4.3
France-- 199.6 3.1 202.7 2.5 295.3 4.7 427.2 6.9
Estonia- 57.5 .9 92.8 | 1.2 21. 1 ... 3 25.7 .4
Poland--------------- 49.5 .. 8 93.4 1. 1 4.4 .. 1 11.5 ... 2
Other countries 573.9 9.0 | 713. 1 8.9 526.0 8.2 641. 0 10.2
Total 6,385.9 100.0 8,011.8 100.0 6,324.3 100.0 6,243.3 100.0
TRADE WITH UNITED STATES
According to official Finnish figures, imports from the United

States in 1928 were valued at $29,715,000, against $24,720,000 in 1927.
The leading items of import in 1928 were: Wheat flour, $5,654,700;
automobiles and trucks, $3,828,900; raw cotton, $3,463,900; rye,
$2,140,700; gasoline, $2,020,200; chassis for vehicles, $1,186,400; salt
pork, $745,100; automobile tires, $731,600; kerosene, $675,300; sul
phur, $593,100; and rolled oats, $592,000.
Exports to the United States in 1928, according to official Finnish
figures, amounted to $10,295,000, as compared with $8,585,000 in
1927. The values, as declared through the United States consulate,
totaled $9,728,000 in 1928 as against $9,011,000 in 1927. The discrep
ancy between these and the Finnish figures is explained by the effect
of transshipments, chiefly of goods, such as furs, of Russian origin.
The Finnish values for leading items of export in 1928 were: Sul
phite pulp, $4,099,300: newsprint, $2,381,800; sulphate pulp
$1,927,200; calf skins, $361,700; matches, $275,600; mechanical wo
ulp, $205,800; cardboard, $186,200; paper (other than newsprint),
179,600; cream separators, $130,800; and cheese, $105,700.
The following tables indicate the share of the United States in
Finnish foreign trade during the last five years and the trend of
leading items in this trade.
TRADE WITH THE UNITED STATES
Imports from United Exports to United

tates States
Year
> Per cont r Per cent
Value of total Value of total
$15,795, 000 13.3 $7,550,000 6.1

20, 447,000 14.7 7,452,000 5.3
20, 190,000 14.2 0, 201,000 6.5
24,711, 000 15.4 8,586,000 5.4
29, 716,000 14.7 10,294,000 6.5
|
37
LEADING ITEMS OF FINNISH TRADE WITH UNITED STATES
|
i Per cent in
Item r 1924 1928 *::::
Imports from United States:

Wheat flour---------------------------------------------------- $5,048,800 $5,654, 700 +12
Automobiles and trucks---------------------------------------- 453, 700 3,828,000 +744
Raw cotton--------------- -----------------
------- 528 3, 463,900 +556
Rye--------- -----------------
-------- -
2, 140, 700 +30
Gasoline------------ - - 2,020, 200 +185
Chassis for wheicles-
Salt pork------ 3, 100
i,j
5,000
+692
–28
Automobile tir 731, 600 +495
Kerosene------ - 675,000 –9
Exports to United
Sulphite pulp--------------------------------------------------- - 4,000,300 +80
Newsprint.----- - :00 , 2,381,800 +19
Sulphate pulp--- - - 1,927, 200 +63
Calfskins-------- . 361, 700 – 17
Matches------------------ - -I - 275, 600 — 19
Mechanical wood pulp- - - - 205, 800 –48
Cardboard-------------------- 186, 200 +3
Paper (other than newsprint). 179,600 –38
Squirrel and rabbit skins----- 23, 400 –88
TARIFF POLICY
The present policy in Finland of providing a temporary tariff,

with a “star system,” for each calendar year has been adopted on
account of the uncertain conditions in international trade, which
have made it necessary to have a somewhat elastic tariff. Under
this so-called star system, the Finnish Council of State is given
authority to increase the duties, on such luxury items in the basic
tariff schedule as are marked with one star, to four times the basic
rates of duty, and to reduce by one-third the basic duties on such
items as are marked with two stars. Recently the duties on a large
number of items have been increased under this provision, which also
Constitutes a bargaining power for use in concluding commercial
treaties with foreign countries.
. In negotiating commercial treaties, Finland has granted conven
tional rates of duty to a number of countries. These rates are
usually between the basic rates and the temporarily increased rates,
ºnd are calculated as a stated percentage of the difference deductible
from the increased rates. These conventional rates are also extended
tº number of other countries by most-favored-nation treatment,
With the exception of the special rates granted to Estonia, in con:
sideration of the traditional exchange of goods between these two
“ºuntries, which are not extended to any other country, and the
Taºs granted to France, which are excepted from most-favored
*tion.treatment in the treaties between Finland and several other
$ºuntries. Under the terms of the commercial agreement between the
|. ..". American products are entitled to the
sionsSttoCiutles establis ed by Finland,
Estonia. inla excepting only special conces
- - - -
. The greater part of Finland's customs revenue at present is de

rived from duties imposed on necessary articles of consumption; the
duties on some luxuries are sufficiently high almost to prohibit their
38
importation. Raw materials and certain machines not produced in

Finland are either free of duty or subject to low duties.
Progress toward a much discussed permanent tariff had advanced
in 1926 to the point where a draft for a new tariff had been com
pleted and published, but it has not yet been acted upon by the Diet.
The final solution of this permanent tariff problem has been post
poned from time to time, in order that the economic conditions in
Finland might become more stable and the mutual interests of con
sumers and producers in various lines might be reconciled.
The postwar tendency in tariff regulation has in general increased
protection to agriculture, while the proposed tariff is intended to
afford adequate protection to domestic industries and at the same
time simplify customs handling. The Government is understood
to take the position, however, that high protective tariffs are not
to be granted with regard to necessary commodities, unless this pro
tection is moderate from the point of view of national economic
welfare. Revenue duties, while held to be of first importance, are
to be limited to articles which may be taxed with profit, but con
sideration is also to be given to the degree of necessity of the article.
At present export duties are levied on certain raw materials such
as pulpwood and match splints, while a sawing tax is imposed on
exports of sawn lumber, partly in order to check exports which are
considered injurious to the interests of the country and partly as a
tax on production. Excise duties are levied on tobacco, matches,
and confectionery.
CURRENCY AND FINANCE
PUBLIC FINANCE
CURRENCY
After an irregular period, dating from the transfer from Swedish

to Russian rule in 1809, Finland in 1860 established its own currency,
the markka or Finnish mark (divided into 100 penni). This was
placed on a gold basis in 1877 and remained so until 1915, with a par
value of 1 gold franc, or $0.193 United States currency.
Finland's currency disorders during the war were primarily owing
to the interference by the Russian Government in its monetary sys
tem, which had been independent, despite the political dependence of
the country on Russia. Russia’s arbitrary ruling regarding the ratio
between the Finnish mark and the ruble, its demands for loans to
which Finland's resources were not equal, and the depreciation in
ruble exchange resulted in a steady depreciation in mark exchange,
price instability, and excessive paper money issues to meet revenue
needs. During the war Finland was relatively prosperous as a re
sult of active trade, especially with Russia, but with the Russian
collapse in 1917, the civil war in Finland, the disruption of trade
channels, and the postwar trade depression, Finland experienced the
effects of a serious monetary inflation. The exchange rate of the Fin
nish mark, which stood at $0.191 in 1913, declined to $0.1208 in 1918,
and reached a low point at $0.0192 in 1921. Note circulation in
39
creased from 113,004,000 marks in 1913 to 1,123,943,000 marks in

1919 and to 1,420,920,000 marks in 1922.
In its financial administration the newly established Government
was, from the beginning, embarrassed by the lack of credit, disrup
tion of commerce and industry, price and wage disparities, and ex
change speculation. During the greater part of 1921, when prices
in world markets for Finland's timber, paper, and pulp staples were
seriously affected, Finnish currency suffered its greatest slump. Ris
ing prices at the close of 1921 brought with them a rapid recovery of
Finnish trade, despite the great drop in the exchange, and in 1922
a favorable balance of unprecedented proportions was established.
Meanwhile the 1922 budget not only was balanced for the first time
since the beginning of the war, but without recourse to loans a surplus
of about 237,000,000 marks was attained. By the end of 1923 the
treasury reserve had been increased to 1,100,000,000 marks, the na
tional debt of 2,415,200,000 marks was funded, and inflationary ten
dencies in prices and note issues were definitely checked. By holding
sufficiently large reserves of foreign currencies with which to control
and regulate speculative tendencies the Bank of Finland (the bank
of issue), was able, from the end of 1924, to keep the exchange rate
practically stable at 39.70 marks to the dollar, and on January 1,
1926, a new gold parity was established at $0.0252, or 7.66 marks at
the new value to one of the old gold marks. The free coinage of gold
and unrestricted importation and exportation of gold were also pro
vided for.
NATIONAL BANK OF ISSUE .
The Bank of Finland, established in 1811, has been a State bank,

under the guarantee and control of the Diet, since 1867. 'Since 1886
it has been the only bank of issue in Finland, and with its 13 branches
transacts all kinds of banking business but does not pay interest on
deposits. The Government owns the entire stock of the bank, ap
points the board of directors, and all officials of the bank are
Government employees.
Prior to the war the Bank of Finland was allowed to issue notes
amounting to 70,000,000 marks without a corresponding cover, but
all notes over this amount had to be fully covered. The following
were considered as cover for the notes: The gold reserve in the bank,
which was not allowed to fall below 20,000,000 marks; Finnish silver
coins, credit balances with the bank's foreign correspondents, for
eign bills, as well as bonds, coupons, and bank notes in foreign cur
rency. The bank's other liabilities payable on demand were covered
in a similar manner.
The bank act of 1925 increased the capital of the Bank of Finland
from 100,000,000 to 500,000,000 Finnish marks. This was accom
plished by transferring to the capital such funds as had been set
aside in previous years for the strengthening of the position of
the bank, by incorporating the profits of preceding years, and by
adding the surplus of about 290,000,000 marks which arose when the
gold reserve, carried on the books at the old parity of 43,300,000
marks, was revalued in new marks. At the end of 1929 the capital
of the bank was doubled by transfer of 500,000,000 marks from the
40
reserve fund; reserves amounted to 76,500,000 marks and undivided

profits totaled 75,400,000 marks.
Under the new law the bank may issue notes up to the total of
its gold reserve, its foreign balances, and foreign-exchange holdings:
In addition the Bank of Finland may issue notes to an amount not
exceeding 1,200,000,000 Finnish marks, which may be covered by
domestic and foreign bills, foreign bonds quoted on foreign stock
exchanges, etc. The bank is required to redeem its notes either in
Finnish gold coin, gold bullion, or in foreign bills of exchange drawn
on countries on the gold standard, at the option of the bank. The
position and activities of the bank since its reorganization can be
seen from the following table:
BALANCE SHEET OF THE BANK OF FINI, AND
[In millions of Finnish marks]
Item Dec. 31,

1925 Dec.
192631, Dec.
192731, Dec.
192831,
Ordi ASSETS
rolinary cover:
Gold reserve----- dents...I.I.I.I.I.I.I.I.I.I.I.I.I.I.I.I.
Foreign correspondents-
331.6 327.4 §: %
1,245.
#:
ſol.
Credit abroad---------------------------------------------- } 1,408. 0 | 1,082.4 { 114.6 |----------
Supplementary cover:
Foreign bills----------------------------------------------- 101. 6 115.4 47. 5 19.4
Foreign bank notes and coupons-- 1.5 1.7 1.4 2.1
Inland bills--------------------- 398. 2 451.5 584. 9 700.7
Rediscounted inland bills---------------------------------- 25.9 87. 0 55.2 676.8
Other assets:
Loans on Security------------------------------------------ 31. 1 23. 1 59.0 46.0
Advances on cash credit----------------------- 23.7 92.7 111.1 132.5
Finnish State bonds in Finnish currency 325.2 112.0 109.5 !----------
Other State obligations------------------------ 36.0 24.0 12.0 ----------
Other bonds in Finnish currency-- 12.5 25.2 26. 5 50.3
Bonds in foreign currency-- 17.6 232. 5 256.2 291.8
Bank premises and furnitur 12.0 12. 0 12.0 12.0
Sundry assets------ 93. 1 58.3 65.4 51.0
Total.-------------- ------------------------------- 2,818.0 2,645.2 3,017.2 3, 018.6
LIABILITIES t
I,iabilities payable on demand:

Notes in circulation---------------------------------------- 1,309.3 | 1,345.7 | 1, 514.4 1,513.2
Drafts outstanding-------------------------------- - 8. 1 15.4 18.5 1.
Balance of current accounts due to the Government-- - 505. 7 303. 4 371.3 375.4
Balance of current accounts due to others--------- - 51.4 86.6 96.1 81.5
Credit abroad--------------------!----------- - 256.2 114.6 114.6 |----------
Foreign correspondents- - 10.6 7.6 3.7 5.8
Sundry accounts------------------------------------------- 30, 6 19.5 29. 5 14.5
Other liabilities:
Capital----------------------------------------------------- 500.0 500.0 500.0 500.0
Reserve fund-------------------------------- 50.7 133.3 240. 5 357.1
Value of bank premises and furniture 12. 0 12. 0 12.0 12.0
Profit and loss account-------------------- 82.7 107.1 116.6 144,0
Accrued interest------------------------------------------- .7 ----------|----------
Total----------------------------------------------------- 2,818.0 2,645.2 3,017.2 3,018.6

Reserve ratio--------------------------------------------------- 84.6 80.0 79. 1 52, 1
BUDGETS
The Finnish fiscal year corresponds to the calendar year. Budget

estimates are submitted to the Diet in September and are gener.
ally voted by the end of the year; supplementary estimates are usu
ally submitted during the autumn session. The burden of postwar
41
rehabilitation in Finland has caused expenditures, in nearly every

recent year, to exceed receipts from sources other than borrowing,
though ordinary revenues have in general sufficed for current expendi.
tures. Budget estimates and yearly accounts since 1923 have been
in nominal balance, but this has been effected by the inclusion, as reve
nue, of receipts of loans (mostly foreign) and of amounts drawn
from the cash reserve accumulated during previous years. The
amounts required from such sources are tending to diminish, in 1927
being almost negligible and in 1929 amounting to a little over 1 per
cent, though in 1928 foreign loans constituted over 10 per cent of
total receipts.
-
In
Tºllowing table summarizes the situation in recent years and
-
SU MMARY OF FINNISH BUDGETS
[In millions of Finnish marks)
Surplus (+)| Surplus (+) Per cent

Fiscal year Expendi- Reve- or(—)
deficit or in -
deficit (—) expenditure

revenue of
tures nuoS 1 dollars
184.9 182.4 –2. 5 –$482, 500 98

2, 551.2 2,788.1 +236.9 +5,117,040 109
3,497.4 3, 136.6 –360.8 –9, 669,440 90
3, 149.4 3, 217.0 +67. 6 +1, 696, 760 | 102
3,952.6 3,330.4 —622.2 | —15,679, 440 84
4,076.7 | 3,434.6 –642. 1 | —16, 180, 920 84
3,988.5 3,986. 1 —2.4 | –60,480 100
5,041.6
4, 272.3 4, 222.8
4, 537.4 | —49.5 i —12,
—504. 2 705, 400
– 1, 247, 840 | 90
09
: Qrdinary and extraordinary exclusive of borrowing and of transfers from reserve.

º Govered by borrowing or transfers from reserve.
Estimated; all other years actual.
. . While expenditures have tended to fluctuate, from year to year,

In a general upward trend, receipts from normal sources have steadily
increased. . Extraordinary and extra-budgetary receipts have tended
to decline, leaving the budget almost entirely dependent on ordinary
Sources. Since 1921 revenues have exceeded ordinary expenditures,
and in 1922 and 1924 they exceeded total expenditures, including
those for extraordinary purposes.
The “ordinary” section of the Finnish budget embraces mostly
recurrent items, while the extraordinary expenditures include only
Mon-recurrent items, such as proceeds from loans and expenditures
for capital investments, railway construction, acquisition of rolling
stock, water power developments, harbor improvements, and the
like. These extraordinary expenditures remain large, amounting
to 658,900,000 marks in 1927 and 1,473,000,000 marks in 1928, and
are estimated at 770,800,000 marks for 1929. For the six years ended
in 1926 a total of 1,083,870,000 marks was also spent for such produc
tive purposes from current revenues; these capital investments are
* noteworthy feature of Finland's fiscal policy.
42
IRECENT FINNISEI BUDGETS
[In thousands of Finnish marks)
|
ificati
Classification (actual)
1927 | (actual)
1928 (estiºted)
1929
expenditures
Ordinary: : -
Presidency, Diet and State Chancellor-------------------------- i 34,200 32,700 33, 200

Ministry of Foreign Affairs---------- - 30,900 31,600 34, 700
Ministry of Justice------ 103,000 107,500 : 109,600
Ministry of Interior-- 233,100 i 243,200 253,200
Ministry of Finance- 57,200 65,600 69, 700
Ministry of Defense- - 411, 100 433,000 432, 900
Ministry of Education- - 42,000 462,600 464,600
Ministry of Agriculture---- - 3.3% 324,600 338, 400
Ministry of Communications-- 899 800 976,600 1,015, 400
Ministry of Industry and Trade- - 57,900 62,800 -
Ministry of Social Affairs----- 47, 100 94, 600 107, 100

Miscellancous expenditures $8,200 33, 500 28, 700
Pensions and Relief payment | 86,700 95,400 106,300
National debt service------- | 598,700 : 443,200 257,300
Industrial enterprises------------------------------------------- 107,100 l 160,800 186, 300
Total--------------------------------------------------------- 3,320,300' 3,557,700'ſ 3,501,500
Extraordinary---------------- 658,900 1,473,000 770, 800
Expenditures outside of budget------------------------------------- 300 900 ------------
Grand total **ś 4:2.3%
Equivalent in thousands of dollars----------------------------------' 100,510 127,048 107, 662
ReVexues -
Ordinary: -
State enterprises------------------------------------------------ 1,438, 200 1,671, 200 1,640, 500

Direct taxes— -
Income and property tax----------------------------------- 480, 5 562, 900 500,000

Miscellaneous----------------------------------------------| 4,800 3,600 700
Indirect taxes— i
Customs revenue------------------------------------------- 1,227, 200 | 1,380, 700 1, 214,600

Excise 197, w ,000
Sundry imposts 244,000 306, 400 251,000
eeS-------------- 193, 700 203,900 222,800
Sundry revenues---------------------------------------------- 187, 100 143,900 165, 200
Total 3,972,500 || 4,502,600 4,196, soo
Extraordinary: -
Sundry revenues----------------------------------------------------------|------------ 126,000.

Loans---------------------------------------------------------- * 535,000 ------III
------------
Revenue outside of budget------------------------------------------ 13,600 34,800 i------------

Transfer from cash reserve.----------------------------------------- | 2,400 ------------ 49, 500:
——
Total--------------------------------------------------------- 16,000 569,800 75, 500
Grand t 3,988,500 || 5,072,400 4,272,300

. Equivalent in 100, 510 127,824 107,662.
* Principally repayments of loans previously made by the Government (24,000,000 marks in 1920).
? Proceeds from foreign loans.
Ea'penditures—The budgets of ordinary expenditures contain no

items of special interest. Expenditures are well distributed over
the various departments, with the Ministry of Communications
showing the largest appropriation, followed usually by “education.”
“defense,” and “debt service.”. The extraordinary budget tends to
concentrate rather on a few ministries connected with new capital
investments.
Expenditures for debt service have fluctuated widely in recent
budgets. In 1927 debt payments of all kinds amounted to 508,700,000
marks, in 1928 to 1,083,500,000 marks (640,300,000 marks of this
amout was included in the extraordinary budget), and estimates
for 1929 total 257,400,000 marks (of which 10,000,000 marks is listed
43
in the extraordinary budget). Amortization payments in consider

able amounts have swelled the total service items.
Approximately 40 per cent of the extraordinary budget in both
1928 and 1929, aside from debt service appropriations, is listed under
“communications.” The fact that gross amounts are used in this
budget, with heavy revenue items offsetting the expenditures, ac
counts for the large totals. Estimated ordinary expenditures for
the State railways in 1929 total 709,700,000 marks. Similar appro
priations in the extraordinary budget cover the following items:
New construction on completed railways. 34,500,000 marks; increase
of rolling stock, 79,000,000 marks: construction of new railways.
96,000,000 marks: sidings at factories and harbors, 4,000,000 marks.
Revenues (ordinary) of 954,700,000 marks from the State railways
exceed the combined total of 926,200,000 marks for ordinary and
extraordinary expenditures under this head. The 100,000,000 marks
for new construction and sidings is a recurrent feature for 8 years,
beginning in 1927. The Imatra power project also is to receive
an appropriation each year until completed: the 1927 amount was
80,000,000 marks, the 1928 figure 42,000,000 marks, and that for
1929 is 32,000,000 marks. -
Revenues.—The principal sources of revenue in the Finnish

budget are State undertakings, which, however, are gross amounts
and are offset partly by expenditures for ordinary operation and
partly by the cost of improvement and extension. Among the vari
ous types of taxation, indirect taxes give the largest yield; but the
amount derived from direct taxes is increasing steadily, while that
from indirect levies fluctuates more or less in accordance with
imports.
ong the State enterprises making up the 1,640,500,000 marks
under that head in the 1929 budget are railways (954,700,000 marks);
forests (328,000,000 marks); industrial enterprises (237300,000
marks), including alcohol factories (83,500,000 marks), sulphuric
acid and superphosphate works (50,900,000 marks), and the Outo
kumpu copper mine (34.300,000 marks); interest on amounts previ
ously invested (61,700,000 marks); and State land (36,900,000
marks). The income and property tax is the only important item of
direct taxation in the budget, with an estimated yield of 500,000,000
marks for 1929. Indirect taxes, so listed, consist of only two items—
Customs, estimated for 1929, at 1,214,600,000 marks; and excises
202,000,000 marks. The item “sundry imposts” is composed mainly
9f stamp taxes. Under the heading of “fees” the 1929 budget
includes mainly the post and telegraph office (171,400,000 marks)
and shipping (25,700,000 marks).
PUBLIC DEBT
Of the public debt of Finland, domestic indebtedness has declined

rapidly while there has been a steady increase in the foreign debt.
t is noteworthy, however, that the greater part of the public debt
Wº incurred for productive purposes, including the construction of
railways, water works, and other public utilities, most of which are
tate owned. The present value of State property is estimated at
*pproximately 35,000,000,000 marks.
44
According to official statements of the Finnish Government the

public debt on December 31, 1923 (with foreign loans converted into
Finnish marks at the exchange rate prevailing when the loan was
floated), amounted to 2,415,000,000 marks; in 1924, to 2,279,000,000
marks; in 1925, to 2,475,000,000 marks; in 1926, to 2,847,000,000
marks; in 1927, to 2,695,000,000 marks; and in 1928, to 2,939,600,000
marks (of which 2,592,800,000 marks represented foreign and 346,
800,000 marks internal indebtedness). The totals, in view of the
depreciation of the mark since the earlier loans were floated, can not
be converted accurately into dollars; but as the mark has not fluctu
ated widely since 1923, they afford a good basis for comparison.
The following table is an itemized statement of the debt at the end
of 1926 and 1927.
FINNISH PUBLIC I) EBT
[In thousands of Finnish marks)
|
Classification Interest
rate Dec.
19 31, Dec. 31,
26 1927
Foreign loans: º Per cent

1889 communicatións loan ------...---...------------- --...------- 3% 17,678 24, 331
1895 railway loan - - - - - - - - - - - 3};
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 11, 182 11,874
1898 banking loan-----. . .----------------------------------------- 3 15,685 39,426
1901 railway loan. -----...-- - ------------------------------------ 312 7, 154 18,697
1903 communications loan - - - - - - - - - - - - - ------------- - - - - - -- - - - - 312 2,672 7,760
1909 communications loan. --------------------------------------- 4% 35,904 39,770
1919 Norwegian “Gutzeit.” loan – - - - - - 6 - - - - - - - - - - - - - - - - - - - - 32,748 ||------------
1920 loan for improving exchange-------------------- - - - - - - - - - - - - - - - - - - - i 8,731 7,271
1921 Scandinavian loan. - - - - - - - - - - - 61 ; - - - - - - - - - - 234, 360 200,000
1922 loan----------. . - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 7 150,000 150,000
1923 dollar and sterling loan - - - - - - - 6 598, 221 585,854
1923 dollar loan . . . 3 246, 702 245,392
1925 dollar loan. .. - - - - 7 393, 268 396,600
1926 dollar loan - . . - - - - - - - - - - - - - - 61.2 595, 500 588,711
Total.. . . . . . . - . ... . . . . ... . . . .--------| 2,349,895 2,315,686
1)omestic loans: |
1918 ſirst Liberty loan - - - - - - - - - - - - - - 5}2 188, 102 | 190,260
1918 second Liberty loan - - - - - - - - - - - - - - - - - - - - - - - 512 $8,584 95, 136
1910 loan to purchase Tornator Corporation----- - - - - - - - - 5!? 44, 841 | , 653
1919 bond loan-- - - - - - - - - 6 122, 110 119,900
1920 bond loan-- - - - - - - - - - - 51.2 53,218 55,690
Total-... - - - - - - - - - - - - - - - - - 496,855 | 511, 639
Grand total.----.. - - - - - - - - - - - - 2,846, 750 2,827, 325

Iless bonds bought for future amortization - - - - - - - - - - - - - - - - - - - - - - - - - - - 132,284
Actual public debt-- - - - - - - - - - - - - - - - - - - - - - - - - - - - - . . . . . 2,846,750 2,695,041
i
A calculation made by the Bank of Finland, in which conversions

are made into dollars at the exchange rates of the various currencies
prevailing when the loans were made, shows the total debt to have
been $87,440,000 as of December 31, 1928, and $87,000,000 as of July
1, 1929, or almost exactly 1,000 marks (about $25) per capita.
According to the budget for 1929, interest and amortization in
connection with the national debt amount to 257,000,000 marks.
BALANCE OF PAYMENTS
Calculations regarding the Finnish balance of payments have been

made by the Central Statistical Office since 1922. The results for
1927 and 1928 were as follows:
45
FINNISH BALANCE OF PAYMENTS
[In millions of Finnish marks]
Item 1927 1928
REVENUES
--------------------------------------------------------------------------------- 6,330 6,250

Plus stowage charges---------------------------------------------------------------- 4.
Total----------------------------------------------------------------------------- 6,370 6,310

Harbor charges- ---- 70 70
Ocean freights-------------------------- ---- 200 220
Emigrants’ and seamen’s remittances---- ---- 200 200
Foreign travel---------------------------- ---- 160 170
Foreign insurance-------------------------------------------------------- 110 170
Post-office, telegraph-office, and States railways' revenue from abroad---- 43 46
Foreign representatives 15 20
Interest from abroad----------------------- 50 50
Not capital movement, errors and omissions---------------------------------------------|-------- 1 1,605
Total 7, 218 8,861
Imports 6,390 8,020

Less marine and transport insurance paid to Finnish companies-- 30 40
Total.----------------------------------------------------------------------------- 7, 218 8,861
1 Of which 150,000,000 marks are long-term borrowings from abroad; 280,000,000 marks, short-term foreign
borrowings of joint-stock banks; 543,000,000 marks, reduction in Bank of Finland foreign currency reserve;
and 630,500,000 marks unaccounted for.
The amounts given in the table are in rounded figures based on

more or less summary estimates, exact data being obtainable only in
exceptional cases. No attempt has been made to record the actual
payments made between Finland and other countries but rather to
show how Finland's balance of payments would have turned out in
case all payments had been made in cash. For instance, values for
1927 and 1928 trade, as shown, by statistics, have been accepted,
although payment was not invariably made at the time. No entries
are made for gold movements as these are included in the trade
figures and were negligible.
There has been a substantial increase in recent years in both income
and expenditure, owing mainly to increased imports and exports of
merchandise, as well as to increases in other items of the balance.
The trade balance has a decisive influence on the balance of payments
As Finland has a favorable balance “on invisible account" in most
years, an excess of merchandise imports can usually be financed with
out incurring fresh indebtedness. . In 1923 and especially in 1928,
however, the large excesses of merchandise imports seem to have been
financed by heavier borrowings from abroad.
46
PRIVATE FINANCE
JOINT-STOCK BANKS
Commercial banking in Finland is highly centralized and the

branch system is well developed; at the end of 1928 Finland had 18
banks with 604 branches or agencies scattered over the country, 225
of which are situated in towns and 379 in the country districts. The
two largest of these banks, the Kansallis-Osake-Pankki and Ab.
Nordiska Föreningsbanken, represent an aggregate of about 55 per
cent, and eight others about 36 per cent, of the total banking business
done in the country. Adding the 14 offices and two agencies of the
Bank of Finland, the total number of offices was 620 at the end of
1928, or an average of one to each 5,800 inhabitants.
The position of the joint-stock banks during the last three years
may be seen from the following table.
COMBINEI, BALANCE SHEETS OF FINNISH JOINT-STOCK BANKS
[In millions of Finnish marks)
Item IDec.
192631, Dec.
192731, Dec. 31,
1928
ASSETS
Cash----------------------- - - - 370.7 354.5

Foreign correspondents.------ 241.8 159.9
Foreign bills----------------- 124.8 95.7
Inland bills---------------- 2,576.8 3,257.7
Loans---------------------- 2, 251. 1 2,594.4
Overdrafts------------- - - - - - 1,229.2 1,475.9
Home correspondents-- - - - - - - - 2,060.7 2, 196.7
Bonds--------------- - - - - 152.4 189.2
Shares.--------------. -- ------- 151.5 107.5
Deposit certificates of other banks-- 12.5 18.8
Interest accrued.---- - - - - - - - - 75. 0 93. 6
Bank premises--------- . . - - 165.4 220.4
Furniture------ - - - - - 5.0 4.0
Sundry assets-----. . . | 124. 132.2
Total. - - - - - .. - - - - - - - - - - - - - - - - - - - - -- - *** 9, 541.8 10,900.5
Li Ab ILITIES t !
Share capital.-------- . . .. … . . .. . . . . . ºf $39| || 552.

||}!
Reserve funds- - - - - - - - - - - - - - - - - - - 330.6 456.7
Other funds-------------. - 213. 1 3.17. 1 282.2
Deposits----- - - - - - - - - - - 4, 111. 5 ; 4,677.9 5, 135.0
T)eposit on savings account - - - - - - - - - - - - 537. 0 608.7 708. 2
Current account S------...- - - - - - - - - - - - - - - - - - - - . . .. . 705.6 784.0 760.0
Bank-post bills-- ---- - - - - - - - - - - - - - - - - - - , 176.4 . 215. 1 202.4
Foreign correspondents- - - - - - - - - - - - - - 321.9 || 359.4 529.1
Home correspondents. . . . .. .. . . . . . . . . . 747.2 910. 9 776.7
Rediscounted bills- - - - - - - - - - - - 86.6 | 55.4 604.1
Sundry liabilities -- . - - - - - - - 222.2 233.6 240.3
Total . .. - . . 8, 247. 1 9, 54.1.8 10,900.5
MORTGAGE BANKS
The oldest of the Finnish mortgage banks is the Mortgage Society

of Finland (Finland's Hypoteksforening), founded in 1862 to assist
agriculture by extending long-term credit against real .. aS
security. This association is cooperative and the borrowers are held
mutually liable for all its debts. Capital was provided at first
mainly by the issue of foreign loans guaranteed by the Government
and later by the flotation of bonds in the domestic market. In 1895
the Towns Mortgage Bank, Städernas i Finland Hypotekskassa)
47
was organized to promote building in the towns by the granting of

loans secured by urban real estate. Later on the savings banks and
the large joint-stock banks also participated in a minor way in
these activities by means of special mortgage departments which they
opened.
These various institutions prospered until the depreciation of the
Finnish currency during the war made it more and more difficult for
them to meet their obligations contracted in foreign currency. The
Towns Mortgage Bank went into bankruptcy in 1922; its mortgages,
together with the corresponding securities, were transferred to the
Finnish Mortgage Bank (Ltd.) (organized in 1907), which has paid
the debts of the Towns Mortgage Bank with bonds of its own. The
progress of this institution during the last 10 years has been rather
slow and its importance in the mortgage-credit market relatively
unimportant; at the end of 1926 its outstanding mortgages amounted
to 160,900,000 marks. The Mortgage Society of Finland was able
to meet all its foreign obligations with Government assistance, and
since its reorganization according to a new law of 1925 relative to
mortgage societies, it is again on the basis of joint security of mort
gagors and its position is sound. At the end of March, 1927, its
balance sheet totaled 210,200,000 marks and it had 161,100,000 marks
invested in mortgages.
The Industrial Mortgage Bank of Finland (Ltd.) was founded in
1924 to provide industrial undertakings with long-term loans secured
by industrial mortgages. It began operations with a capital of
50,000,000 marks ($1,259,250) and floated a foreign loan of $12,
000,000. This bank was at its beginning larger than all the earlier
mortgage institutions combined.
The Municipal Mortgage Bank of Finland (Finland Residential
Mortgage Bank) was organized in May, 1924, with a capital of
100,000,000 marks in the form of Government bonds transferred to
it by the Finnish Government: In July, 1927, it floated a loan of
£2,000,000 in England, Sweden, and the Netherlands, and in Sep
tember, 1928, one for $10,000,000 in New York.
In 1927 Finland had a total of 11 mortgage banking institutions
which had make 10,898 loans, totaling 1,194.259,000 marks ($30,
095,300). In addition, savings banks loaned about 1,360,000,000
marks (almost 50 per cent of their total outstanding loans) on mort
gages, and according to an estimate made in 1923 large insurance
companies in that year loaned 51,600,000 marks to farmers on mort
gages. Mortgage loans granted by private banks amounted to
'615,566,000 marks at the end of 1927.
SAVINGS BANKS
The first Finnish savings bank, established in 1822 at Turku, long

remained the only one, and as late as 1870 there were only 35 savings
banks in Finland; thereafter they multiplied rapidly until to-day
there are savings banks in all the towns and in most of the rural
Communes, where they meet local needs by making discounts and
loans. Most of these banks are private organizations, regulated by
law and supervised by the Minister of Finance through district
inspectors. The Central Joint-Stock Bank, which was established
48
by the savings banks in 1908 at Helsinki, guards their common

financial interests and handles their investments.
The following table indicates the rapid increase in savings-bank
deposits:
SAVINGS BAN KS OF FINI.AND
Savings . - Savings
Number of bank Number of bank
Year savings deposits Year savings deposits
banks (millions banks (millions
of marks) of marks)
193 77. 62 467 2,017. 11

309 139.03 470 2,421.69
375 228.34 472 2,998.70
415 359.77 474 13,695.50
457 997. 38
! Includes long-term deposits and current accounts.
The post-office savings banks, established in 1886, are administered

by a separate savings bank department of the post office; the money
deposited is guaranteed by the Government. This method of saving
is steadily increasing in popularity and deposits in the 1,101 branches
amounted to 202,107,308 marks at the end of 1927, representing the
savings of 134,070 depositors. Deposits at the end of 1928 amounted
to 209,000,000 marks.
COOPERATIVE CREDIT SOCIETIES
The cooperative agricultural credit societies constitute a link in

the financial system of the country. Their purpose is to supply
credit to its members on the most favorable terms for the purchase of
land, cattle, implements or supplies, or for the carrying out of con
struction works on farms and in connection with other agricultural
establishments, and to provide them with an opportunity for the safe
deposit and accumulation of their savings. Most of the 1,416 so
cieties, which were registered at the end of 1928 (with a membership
of approximately 130,000), are located in the regions inhabited mainly
by small holders. With few exceptions they are affiliated with the
Central Bank for Cooperative Agricultural Credit Societies (whose
working capital consists principally of Government loans obtained
at various times), which had made them loans totaling 720,400,000
marks at the end of 1928; they also obtain working capital from the
savings deposited by their members, which amounted to 274,300,000
marks at the end of 1928. The aggregate credits outstanding at the
end of 1928 amounted to 929,000,000 marks.
Since 1917 it has also been possible for consumers’ cooperative so
cieties, of good financial standing, to conduct affiliated savings de
partments, provided the central institutions undertook their control.
At the end of 1928 deposits in such institutions totaled 419,300,000
marks.
PROTESTED BILLS
During 1928 there were 7,354 bills protested in Finland as against

7,578 in 1927, but the value was higher—42,600,000 marks as against
37,500,000 marks. The financial stringency which began toward the
close of 1928 is reflected in the fact that during the first six months
of 1929, 7,167 notes were protested, with a value of 40,600,000 marks.
49
FINLAND AS A MARKET FOR AMERICAN GOODS
Finland is a good, though relatively small, market for American

products. Its per capita purchases from the United States are about
$8.25, only slightly less than those of Sweden. Necessities, including
foodstuffs, motor vehicles, oil, and certain machinery, will probably
be purchased increasingly from America and a number of lines not
yet in the Finnish market could profitably be introduced.
The factor of distance is a handicap to American exporters. It
causes high prices and Finland is still essentially a price market.
This unavoidable disadvantage, together with the severe competition
existing to-day, requires, on the part of the American exporter, close
attention to detail, prompt replies to inquiries, and, above all, fre
quent personal contact by suitable representatives.
Finland can be canvassed in connection with Scandinavia, and
American firms doing business in the Scandinavian countries who
have not yet established business in Finland are in a position to sur
vey the market at little extra expense. The Finns, however, should be
dealt with directly, for they are intensely nationalistic, and very
often business is lost because American firms approach the Finnish
market through intermediaries of other nationality. Very often
a local representative can successfully negotiate with Finnish buyers
where an American might fail.
Advertising, both through the press and by other means, is highly
effective in Finland. Practical demonstrations, whenever feasible,
always attract the public. An American firm which plans to intro
duce an entirely new line of goods on the Finnish market should
make its representative an initial allowance for advertising of all
kinds. Experience shows that with the proper approach and suffi
cient publicity, American firms can obtain good results in spite of
highly competitive conditions and the natural conservatism of the
Finnish people.
The Government encourages the purchase of domestic goods, but
there is no prejudice against American goods. There is, of course,
often a certain sentimental connection resulting from old relation
ships with European nationals which, however, does not affect trade
relations to any appreciable degree.
Most American products which have entered the Finnish market
have enjoyed good sales based on a gradual building up of relations,
in which reasonable credit has played an important part. Many
first-class firms in Finland desire credit in doing business abroad be
cause of high interest rates and small working capital. Reasonable
credit terms are, therefore, essential if the Finnish market is to be
seriously cultivated. Ordinary caution is, of course, to be used in
ſº terms, but the average Finnish business man is notably
onest and a good risk.
O
rves
$5
& BUREAU OF FOREIGN AND DOMESTIC COMMERCE

William L. COOPER, Director
RāIVEB
APR 11 1930
Q. S. U. LIBRARY
THE PRICE OF SILVER
P
05
2°5
),602.
UNITED STATES
WASHINGTON : 1930
For sale by they

‘Superintendent of Documents, Washington, D. C. - - - price 10 cent
º
FOREWORD
During the past few years much concern has been expressed in
various parts of the world over the constantly º
price of silver.
The present decline, which set in during the first half of 1928, is
only a continuation of a greater one from the comparatively high
levels of 1925. By March 1, 1930, the price of silver reached 40%
cents per fine ounce, the lowest price on record.
The decline is of interest not only to American producers of silver,
both at home and abroad, but also to Americans engaged in trade
with the silver-producing and silver-using countries. For a time
it was hoped that China, a major silver-using country, would soon
be able to effect financial reorganization, but in view of the slump in
silver the realization of that hope may again be delayed. Mexico
has been hard hit by the decline; 8. an important silver
producer, is also concerned. The present low silver price is an
impediment to the recently initiated currency reform in India.
Moreover, producers of copper, lead, and zinc normally derive a
portion of their profits from silver; the loss of their profits affects
not only those producers, but, eventually, everyone who in any way
uses copper, lead, or zinc.
... The instability of the price of silver has long been a disturbing
influence in international trade. In the case of silver-using coun
tries, it often subjects profits of foreign trade to partial and even
complete depletion. Because of this fact, trade with those coun
tries is frequently reduced to a speculative basis. Another un
fortunate effect is that commodity prices within a silver-using
country must be readjusted frequently, especially where foreign
trade is an important part of the country's business.
Silver has been discarded as a standard of monetary value in the
principal countries of the Occident, while in the Orient, India,
Siam, the Straits Settlements, the Netherland East Indies, and the
Philippines have all pegged their currencies to gold. Recently,
Indo-China linked its piaster to the French franc, while Persia and
Hong Kong are both considering the advantages of the gold stand
ard. Japan, as early as 1897, went on the gold standard, extending
its currency system to Taiwan and later to Chosen.
The following exposition of the factors which determine the price
of silver emphasizes that silver is a commodity. The study was
p. in the Finance and Investment Division of the Bureau of
oreign, and Domestic Commerce, under the direction of Ray Hall,
acting chief. That division will be pleased to give its attention to
inquiries on the subject.
APRIL, 1930,
(II)
THE PRICE OF SILVER."
By Herbert M. Bratter, Finance and Investment Division
When the price of silver evinced a steady decline during 1929,

from 57% cents per fine ounce early in January to 46% cents on
December 30, and early in 1930 recorded a new low level for all
time, the attention of the world was once again focused on the unruly
metal. Silver is the principal medium of exchange and store of
value in the most heavily populated continent, Asia.” In other parts
of the world it is widely employed for subsidiary coinage, and it is
almost as old as history in its use in the arts. While a decline in
the price of silver is sufficiently disturbing to China and India, and
to #: countries which trade with them, the habitual instability of
silver is even more generally disturbing. For example, Mexico,
a country in which Americans are estimated to have invested
$1,400,000,000, is the chief source of the world’s silver; in 1929 it
produced 105,000,000 ounces, or almost 41 per cent of the world’s
output. The stabilization of silver, would be a boon to traders the
world over; but the metal will probably continue to play its historic
rôle of “prince and pauper.”
CAUSES OF PRICE FLUCTUATION
Changes are constantly taking place in the production of and the

demand for silver. It is the interplay of those two factors, of course,
which determines the price of silver. When an important country
like India or Great Britain “demonetizes " a portion of its silver
coinage, it both adds to the supply of silver and lessens the demand
for silver, and thus doubly depresses silver prices. When a new
or growing demand appears, such as for the manufacture of film,
temporarily or permantly, that tends to raise silver prices. Silver
“consumed ” in manufacture, however, usually finds its way back
to the market sooner or later. That, in fact, is the case with almost
all silver used. “Silver is practically indestructible,” stated Arthur
Notman, mining engineer and geologist, before the Royal Commis
sion on Indian Currency and Finance in 1926.” “Presumably the
great bulk of all the silver that has been produced since the begin
ning of time is still in existence in one form, or another. Most of
it, however, is performing no essential service.”
*The Bombay Bullion Market, Trade Information Bulletin No. 457, was published by
the bureau in 1927.
According to Çommerce Xearbook, 1939 (Vol.II, p.69%), the population of India and
China together—761,000,000—is over 39 per cent of the world's total population—
1,049,000,000.
*See the report of that commission, Vol. III, p. 555.
(1)
2
RELATION TO PRICES OF OTHER COMMODITIES
It is a startling fact that silver prices in New York averaged $0.51

in 1915, $1.12 in 1919, and $0.63 in 1921. What is generally over
looked is the fact that silver is a commodity, pure and simple, and
that its price throughout the world is its evaluation in gold, just as
is the price of copper or corn; and it is well known that the value of
gold fluctuates markedly from year to year—in other words, that its
purchasing power varies greatly from time to time. It is, therefore,
obvious that, other things remaining unchanged, the price (in gold)
of any given commodity must reflect such fluctuation. Of course, it
must also reflect the relationship of that commodity to the price of all
other commodities or goods. It is possible to show that prices are
determined in part by variations in the quantity of gold, or the quan
tity of goods, or in the demand for gold or the demand for goods;
prices are but the point where these factors meet.
Since silver is a commodity, and since commodity prices fluctuate,
silver prices and commodity prices should, broadly speaking move
in unison. That they do is clearly demonstrated in chart A. In that
chart the upper curve represents the index number of wholesale
prices in the United States since 1914 as compiled by the Department
of Labor (1926=100); that curve shows the value of the commodi
ties in general. The lower curve shows the changes in the price of
silver since 1914. Both wholesale commodity prices and the price
of silver increased markedly during the World War, dropped pre
cipitately in 1921 and 1922, and thereafter moved in the same general
direction. In the graph one unit vertically represents both a change
of 1 unit in the index number and of 1 cent in the price of silver; in
other words, the movements of the two curves are fairly comparable.”
Index numbers, as is well known, represent a weighted average of
commodity prices; any single commodity going to make up the aver
age will probably show frequent deviations therefrom. It is not
surprising that minor deviations from the mean are revealed in silver
price movements. As is the case with any other commodity, silver
is subject to its own peculiar influences, which may have no visible
effect on prices of other commodities. Thus the average of silver
prices for September, 1917, when the price level of 1878 was for the
first time regained, was considerably ahead of the general trend of
silver in 1916–1918 and also was ahead of the wholesale commodity
price trend. This was due to speculation, an embargo on silver
exports in the United States, Japan, and other countries, and to
other causes. The market soon became top heavy and prices receded."
Similarly, the steep decline in 1920 was, for a while, halted when
Pittman Act purchases at $1 per ounce commenced to be made in
October of that year. -
Another type of divergance between the two curves is the decline

of silver prices early, in 1920," before the general commodity price
decline set in, and the rise in 1921 prior to a rise in the general
* The average commercial ratio of silver to gold during each calendar year fr
fºliº.º.º. tºº lºgº.º. i*) See
table on the bullion value of the silver dollar, 1837, to 1928 (p. 12 º ‘....".
* The fluctuations of silver in 1917 were the largest in history, exceeding those of
1876. In 1917 there |P. increasºq demand from Latin American Sountries for
coinage purposes, while England in 1916 and 1917 consumed 85,000,000 ound. for
Colnage. -
o The specific causes of the 1920 decline in silver are discussed below.
NUMBERs
INDEx
smTrrrr,
1IIII
III,
IIITTTTTTT
rIII
ſtrºn
BTIºoTrITmoIrTI.I
ITTTTTTT
Trini
in
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TTTTTTTTTI
ITITTTTH
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i
III,
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o 2/
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O
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aOO
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8
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2O
Llu lu lu lu lu lu lu lu lu lo
LLL
oL.L.,
222:22:22 sº."{i};
in§§§).
1929,
to
1914
States,
United
the
in
prices
commodity
and
price
A.—Silver
CHART
wholesale
The
clusive.
100).
=
SL–H-N-F-U#
~~ *
|
1923,
1928
1927
1926
1925
1924
1923
1922
1921
1920
1919
1918
1914
1917
1916
1915
“...
Labor.
Department
by
compiled
as
States
United
in
prices
wholesale
of
number
findex
the
on
based
is
la oC)
–Z“...”
~/\-
*i. *.
--...”
Silver•--.
‘.....4.”
*.
*...**
--"
Prices
Commodity
Wholesale
-
silver-price
The
Statistics
Standard
by
published
data
on
based
is
curve
~~
s
º:
ZN-|
12O0
2
- -
OUNCE
FINE
PER
CENTS
*. .*~. .”
4.
commodity price level of the United States. These divergences may,

in a general way, be explained by the fact that silver prices are more
sensitive to world-wide influences than are commodity prices within,
say, the United States, just as wholesale commodity prices are more
sensitive to changed conditions than are retail prices; but with the
difference that silver is ultrasensitive. A closer inspection of the two
curves reveals that since 1925 silver prices have tended to decline
further than have commodity prices, especially so in 1925–26 and
1928–29. It is the latter declines which have caused the recent com
motion in the silver trade.
SUPPLY AND DEMAND
There are innumerable factors which go to determine silver prices.

Some of these are temporary in nature; some are more lasting in
effect. In general, prices are determined by supply and demand.
Here it is important to remember that, although silver is practically
indestructible, silver which has been “ consumed ” by mints for coin
age purposes and by the arts and industry ceases to be a factor in
silver prices until it returns to the market, although it may well
remain a potential factor. The silver which the people of India,
China, and Central Africa have made into ornaments or put away
as a store of value is off the market. On the other hand, the existence
of large stocks of silver in the vaults of the Indian Government,
which is following a policy of selling the bulk of that silver, is a
factor more than potential. This threat to the market has repeat
edly cast its shadow on silver prices. - - -
Among the more important factors affecting silver prices are the
following: The production of new silver; the return of old silver
from debased or demonetized coins or from the arts; the sale of silver
from hoards, inspired largely by the price of silver; and the demand
for silver from the two largest “consumers”—China and India—as
affected by favorable or unfavorable crop conditions, internal unrest,
famine, public finances, and pure sentiment.
PRODUCTION OF SILVER
“BY-PRODUCT * SILVER
New silver is produced almost entirely in conjunction with other

metals. Although silver in dry and siliceous ores is so spoken of, a
pure silver ore can not be said to exist. Silver is generally found
with lead, copper, lead-zinc, gold, and complex ores. A mine may
be said to be a straight silver mine if the larger part of its income is
derived from its silver product. According to this somewhat inexact
classification, since the value of the metals produced by a mine vary
with the prices of those metals, a mine may at one time be a silver
mine and, when prices change, may become a lead or a zinc mine.
Certain marginal producers of silver and copper, lead, or other
metals may be in a position to continue production only so long as
a maintenance of silver prices enables them to derive part of their
profit from the silver product of their mines. Silver, in fact, deter
mines the net profit of such producers, who find themselves losing
money if silver drops below a certain price. Such marginal pro
ducers must either resort to intensive, selective mining, which is more
5
costly, or suspend, operations. On the other hand, as silver is to a

large extent a by-product in the case of the large producers of
certain metals indispensable to industry, it will continue to be mined
by them almost regardless of silver prices." As more and more the
important copper, lead, and zinc, producers find their profit eaten
away by declining silver prices, those producers, if they are not to
withdraw from business, must inevitably attempt to increase the
price at which they sell their copper, lead, and zinc. Thus, were the
Indian Government to sell its $389,000,000 worth of silver * (held
in the currency reserve in December, 1929) within a short space of
time, not only would the consequent depression of the silver price
mean a loss * to the Indian Government, but it would mean a very
ponderable loss to world producers of silver, lead, copper, zinc, and
other metals.
EFFECTS OF SILVER PRICE ON OTHER METALS
For example, the effects of a decline in the price of silver to 35

cents per ounce, or less, were estimated by H. H. C. Jenison, consult
ing engineer at the hearings of the Royal Commission on Indian
Currency and Finance in 1926, as follows:"
Copper.—The decrease to 35 cents or less per ounce of silver would in all prob
ability result in an increase in the price of copper of about 2 cents per pound,
a loss of gome $600,000,000 invested in the copper-silver mines of the West, re
placing of their production by foreign production, and the loss of five to ten
thousand million pounds of metal contained in the ore reserves of these mines,
which could not be successfully operated under such conditions.
Lead mines.—The result of such a decrease in the price of silver, so far as
lead is concerned, would, in all probability, be primarily and principally that
of increasing the price of lead about 3 cents per pound and making the silver
lead mines of the West marginal producers, thus rendering it impossible for
them to earn interest on the investment or to recover the outstanding investment.
Zinc mines.—The decrease in the price of silver to about 35 cents per ounce or
less would probably be reflected merely in an increase in the price of zinc of
1 or 1% cents per pound, the loss of part of the zinc reserves of the West, and
the more rapid exhaustion of the comparatively short-lived reserves of the
Central States.
Complea lead-zinc ores.—Until the increase in the price of lead and zinc offsets
the loss of the value of silver, the necessary production from the complex lead
zinc ores would be cut off and their general availability be postponed and in
CreaSed in cost.
One of the effects of a permanent decline in the price of silver

is to encourage economies in production, metallurgical improve
ments, and inventions by important producers of copper, lead, and
zinc. This greater efficiency tends to maintain the volume of silver
production by making it more than ever a by-product of such pro
ducers. A balancing tendency, however, is probably to be found
"And in increasing amount, as pointed out by Mr. Notman, in his statement published
in the report of the Royal Commission on, Indian Currency, and Finance, Vol. III, p. 554.
*Compare this sum of $389,000,000 with the total production_of_new silver, in 1929,
sº. Including the silver in the currency, reserve, $371,000,000 in 1928, the
monetary stock of silver in India, as estimated, for the end of 1928. was worth $1,671,
000,000 (U.S. Mint Report, 1929, pp. 186 and, 231), In, his, Indian Finance and Banking,
G. Friðley Shirras estimated that in 1919 India had a total silver stock of 3,729,000,000
ounces. At an arbitrary value of $0.50 per, ounce this stock, would be worth $1,864,
500,000. TA statement on page 35 of Trade Information Bulletin, No. 457, The BQmbay
Builion Market, indicated a total silver stock in India, in 1916–1920 of about 4,000,000,000
fine ounces. TA't $0.50 per ounce this would be, worth $2,000,000,000., E. Kann, writing
in Finance and Commerce (Shanghai) of Jan, 22, 1930, estimated India's stock of silver
at 4,300,000,000 ounces and China's at 1,000,000,000 to 1,500,000,000 ounces.
*This’iosº india could perhaps partly recover by investing the gold proceeds of the
es.
*Op. cit., p. 567. * -
6
in the freer use of silver in the arts and in the application of silver
to new uses previously not possible because of the price.
UNITED STATES SILVER PRODUCTION
In view of these factors, it is of interest to Americans to analyze

the sources of silver produced in the United States. Figures given
in the Annual Report of the Director of the Mint for the fiscal year
ended June 30, 1929 (p. 37), and in Gold and Silver in 1927 (p.
628), by J. P. Dunlop of the Bureau of Mines, show that in 1926 dry
and siliceous ores (the most nearly pure silver) furnished 21.71 per
cent of the total United States silver production and that complex
and other ores accounted for 78.29 per cent. In 1927 the proportions
were 19.75 per cent and 80.25 per cent, and in 1928 they were 19.35
per cent and 80.65 per cent. It must be remembered that, even in
the dry and siliceous ores, silver is found with other metals.
In general, those ratios may be said to apply to all North Ameri
can production, which in 1928 constituted over 73 per cent” of the
world production. Therefore, at least 80 per cent of 73 per cent—
or at least 58 per cent—of the world production can safely be said
to be produced in some measure as a by-product.
Taking the 1927 total production of silver in the United States
(Philippine Islands excluded), 59,625,682 ounces, we find that only
11,775,384 ounces, or less than one-fifth, came from dry and silicous
ores; 47,850,298 ounces, or over four-fifths, came from other ores,
such as lead, copper, lead-zinc, and the like. The relative impor
tance of the various individual ores in the production of silver ap
pears in the following analysis of the 1927 figures taken from the
Bureau of Mines, Mineral Resources, 1927. (Pt. I, p. 628.)
Millions of
fine ounces
Dry and siliceous ores--------------------------------------------- 11. 78
Lead ore--------------------------------------------------------- 15. 76
Copper ore------------------------------------------------------- 14. 56
Lead-zinc ore----------------------------------------------------- 13. 62
Copper-lead and copper-lead-zinc ores------------------------------- 2. 17
Zinc ore---------------------------------------------------------- 1. 69
Placers---------------------------------------------------------- . 05
Total.------------------------------------------------------ 59.63
TREND OF PRODUCTION
An examination of total world production figures shows that,

although prices have for some years been declining, there has been
no let-up in production. Since 1921, in fact, silver production has,
with minor exceptions, steadily increased. That of the United
States—the second largest producer—has been fairly constant; that
of Mexico—the largest single producing country—has increased
somewhat. But, since much of Mexico's silver production is mined
or purchased by Americans, the United States is very much inter
ested in the Mexican silver situation. In 1928 Mexico produced an
estimated 108,500,000 ounces of silver which, at 58.488 cents per fine
ounce, was worth approximately $63,459480. During the same year
the United States imported from Mexico silver valued at $45,191,042,”
* This was pointed out by Mr. Notman in the report of the Royal Commission on Indian
Currency and Finance, Vol. III, p. 557.
Annual
p. 55.
Report of the Director of the Mint for the fiscal year ended June 30, 1929,
7
which was equal to over 71 per cent of Mexico's production that year.
As stated in Mineral Resources, 1927 (Pt. I, p. 604), “Most of the
world output of silver is produced or refined in the United States,
but a large part of it is consumed in Europe, India, and China.”
The largest producers, after Mexico and the United States, are
Canada (21,936,407 ounces in 1928), Peru (21,607,693 ounces), New
MILLions of fine ounces
3 oo
N-L
Total World Production
2co A Z
LPTNG|V
I so
Mexico -?
too -R
->
LUnited State
- **ſ--- 2' ** =
>- 2^ TrTT--------L---
so ...~ 7A *H-----L--r
- --"
o
1914 1915 1916 1917 1918 iºſ9 1920 1921 1922 1923 1924, 1925 1926 1927 1928 1928
CHART B.-World production of silver, 1914 to 1929
South Wales (9,055,241 ounces—all Australasia produced 10,308,866

ounces), and British India (7,425,810 ounces). Japan also produces
considerable quantities (4,531,543 ounces in 1927). The production
of new silver since 1914 is shown in chart B and the table following:
WoRLD PRODUCTION OF SILVER SINCE 1914
[In millions of fine ounces]
- Total
Year § Mexico Canada Peru Alsº wº
72. 5 26.0 ##| 0.2 11.0 . 172.3

75.0 22.9 26.6 9.5 9.3 173.0
74.4 29.8 25.5 10.8 10. 7 180.8
71.7 42.0 22.2 10.9 10. 0 186. 1
67. 8 62.5 21.4 9.8 9.9 203.2
56.7 65.9 16.0 9.8 7.2 179.8
55.4 66.7 12.8 9.2 2.7 173.3
53. 1 64. 5 13. 1 10. 0 5.4 171.3
56.2 81. 1 18.6 13.2 11.5 209.8
73.3 90.9 17.8 18.7 13.8 246.0
65.4 91.5 19.7 : 18.7 10.8 239.5
66.2 92.9 20.2 19.9 10.8 245.2
62.7 98.3 22.4 21.5 11.2 : 253.8
60.4 104.6 22.7 18.3 || 1 10.3 | 254. 0.
58.4 || 108.5 21.9 21.6 10.3 257. 3
61.0 | 105.0 ---------- -------------------- 256. 5
* Inc. -
::::::::: º§§: an estimate of 9,000,000 ounces based on previous years' production.

ºbject to revºj
"Bandyani #ºn. Review of the Silver Market for 1929, p. 20.
Source: Annual Reports of the Directºr of the Mint for the fiscal year ended June 30, 1920 (pp. 38 and
), andgºus years.
tºº. The figures include corrections of earlier estimates as given in the 1923 annual
101560—30—2 º
RELATION OF PRODUCTION TO PRICES
In order to illustrate the relation of production of new silver, the

debasement and demonetization of silver coins, and the sale of Indian
Government silver, Chart C has been prepared. It shows silver
prices, the production of silver, and the sale of other supplies of sil
ver (so far as estimates are available) since 1914.
During the years of the World War and immediately following,
silver prices reflected general commodity prices as well as the scarcity
of the metal in Asia, but after the war silver prices reflected both
the total supply of new silver thrown on the market and supplies
made available through monetary debasement and demonetization.
*Tºº Tºº Tºº Tºº Tºzº Tºgº. Tºgſpºſoas Tse Tag Tºei eis sig !,
O
oz os
ot” oo I
N-- /TS-J
* -----> z
oo >+ * os I
*~ ~-- * ---t--J-T. - 2
- - v--~ Z_T
W -4
oe y-
w w
_^Z ooz
w z
w z
uo.pnpold taon PLON ſelol \ /
-T"- / w Aſ
oo I - oce
~~ N. z
/ *S ~/24- ºne ºdºº

Thai's gº osi-d Stºy
Z
/*:::: sniduopnpoudraad)
Aldans pluow º
oz I 7 ooe
ov :
-- o ge
goNno ania 83d SLNad s20Nmo RNI., do SNointmlw
CIIART C.—World supply and price of silver, 1914 to 1929
In December, 1920, the United Kingdom debased its silver currency

from a fineness of 0.925 to 0.500. Certain other countries followed
suit in 1921. In the past year, according to estimates, the sales of
the Indian Government have become the most important source of
“other supplies.” It is unlikely that such supplies will be exhausted
for some time to come.”
Comparing the curve which represents the total of new silver pro
duced plus old silver returned to the market, it immediately becomes
evident that a very close inverse relationship exists between total
supply and prices; thus, with total supplies increasing, and with de
mand ostensibly remaining fairly constant, prices have declined.
The following are the revised estimates of “other supplies” taken
from the annual reviews of Handy and Harman:
13 Cf. The Statist (London), Jan. 11, 1930, p. 54.
9
ESTIMATES OF “OTHER SUPPLIES ’’ OF SILVER SOLD ON THE MARKET
...; łºś. §: by
Inent of |tized Eu- || Indian
...; B.º. §. by
ment of |tized Eu-
Indian
Year |####|"...
-
à. | Total r
Year ###, "... dº. | Total
coinage coins ment coinage coins ment
-
|
18.0 18.0 *…] 7.0 ---------- ---------- 7.0

31.0 31. 0 || 1926.------- - .7 ---------- |---------- .. 7
19.0 43.0 || 1927- ------ | 1.2 8.0 9.2 18.4
20.0 45. 0 || 1928- ------ | 5.5 32. () 22. 5 60.0
18.0 20. 0 || 1929 – - - - - - - 10. () 10.0 35.0 55.0
|
1Includes 23,000,000 ounces shipped to England and 8,000,000 sent to the United States by Germany.
Source: Handy and Harman, annual reviews.
DEMAND FOR SILVER
The demand for silver is centered in China and India, since other
countries are evincing less and less interest in the white metal. As
estimated by Handy and Harman, out of new silver and “other sup
plies” totaling 311,500,000 ounces, in 1928 India took 81,800,000 and
China 136,700,000 ounces. The two together accounted for over 70
per cent of the total demand.”
Let us consider their imports of silver from the United States.
Allowing for their exports of silver to the United States (China
$444,197 worth and India $886) and disregarding American silver
exports to Hong Kong, the figures which follow show that in 1928,
of $87,400,000 of silver exported and reexported by the United
States, $78,700,000, or 90 per cent, went to China and India. Not
only did China and India thus take from us much more than our
entire domestic production, which was 58,400,000 ounces in that
year, but they took from the United States alone over one-half the
total world production in 1928.
SILVER ExPORTS AND REEXPORTS OF THE UNITED STATES IN 1928
[In millions of dollars)
Item | To China | To India cº

*- - - - - - i - -
*Ports------------------------------------------------------------ 39. () 19.4 64.3

Reexports III.I.I.IIII - 19. 1 .3 | 23. 1
58. 1 | 20.6 87.4
Source: Annual Report of the Director of the Mint for the fiscal year ended June 30, 1929, pp. 49 and 53.
According to the Annual Report of the Director of the Mint for

the the fiscal year ended June 30, 1929 (p. 236), the value of the
total world production in 1928 was $150,832,000—257,300,000 fine
ounces at the average London price of 58.627 cents.
elow are shown the latest available figures on the silver imports
9f China and India. They show that India and China together
imported a net sum of $117,330,000 worth of silver during 1928
“Over 70 per cent of the total quantity and over 77.8 per cent of the total value.
10
(local valuation), or over 77.8 per cent of the world's production

in that year. It was just shown that the larger part of this,
$78,700,000, came from the United States.
NET SILVER IMPORTS OF CHINA AND INDIA IN 1928
Average Equiva
Net silver imports, in rate of lent in
Country millions of local cur
exchange millions
rency in 1928.1 of dollars
106.40 haikwan taels---| $0.7100 75.54

.3647 41.79
---------- 117.33
---------- 150.80
* Commerce Yearbook, 1929, Vol. II, pp. 170 and 356.
DETERMINANTS OF ASIA’S PURCHASES
The ability of China and India to purchase silver from abroad

depends largely on their balances of international payments. No
accurate estimates are available covering the invisible exports of
either country; investigation is, accordingly, limited to the visible
trade. When their exports of merchandise increase, it is to be
+ indicates NET Excess + Indicates NET Excess
oise exports of GoLo &
a sluvea imports
In miu-Lions of dou.LARS In-MILLions of ool-L-ARs
+2co +2Oo
+ 1 OO #^N +i oo
4 vº-Gold and Silver

z w
£ \ .* --N |^--- **
,” ver *se
o w o
|-- - - -
- OO /TNL.^ / - 1 OO
TTV || WN/N/ -2OO
-3oo
V -soo
1914 ei= i eia e 7 e i e i 1 e 19 e 20 e2 I e22 e23 e24. In eas eae. I leaf
-inoic Ares nET Excess -Indicates NET Excess
of MERCHANdise imports of Gould & silver ExPorts
in Miu-Lions of DOLLARS (> 2 are arºs-re) in Miu-Lions of Dou LARs
CHART D.—China's foreign trade in merchandise and precious metals,

1914 to 1927
expected that their imports of silver will increase. Those two

countries (notably India) also import gold, at times showing a
momentary preference for the latter metal. In the following
analyses tº:
D and E) covering the period from March 31,
1914, to 1929 in the case of India and the calendar years 1914 to 1927
in the case of China, comparisons have been made between total
net in ports of treasure (gold and silver combined) and net exports
of merchandise.
11
China shows a constantly adverse visible balance up to 1917, with

an excess of exports of treasure. In the years following 1917 the
invisible exports improved sufficiently to enable China to import
treasure on net balance. The total of gold and silver imported dur
ing the period covered by the chart reached its apex in 1919. This
+indicarEs NEr
of Golo & silver IMPORTs
in Mil-Lions of Dou-LARs
and Silver
-indicares net excess

M. ise. IMPoºrs
MiLutons of doula'Rs
CHART E.—India's foreign trade in merchandise and precious metals,

1914 to 1929
heavy demand from China naturally enough coincided with the

great increase in silver prices. When silver dropped in 1920 and
1921, China's imports of gold and silver also dropped in value.” In
general, there is a very close correspondence in the movement of
merchandise exports and treasure imports.
CHINA’s Fore.IGN TRADE IN MERCHANDISE AND PRECIOUS METALS
i
Net excCSS - - -
Net im
- || | Net excess :
Net im
of mer-
ports (+)
of Iner-
º,
| ports (+)
-
Y º exports || chandise or exports

ear §º, –) O ! Year sº (–) of
or 0 - Or O
ºft, Fººd | imports º
–) l
|
-
( |
—142.7 —17.8 | —231.7 | +12. 1

–22, 1 –22, 2 —240.8 +36.3
–27.3 —13.3 — 136.4 +49.2
–89.2
–86.9
— 12.5
+28.3
| —1996 |
– 144. 1
+13.2
+51. 6
–22. 5
–273.6
+131. 1
+93.2 ||
| —197.5 |
–65. 1
+34.7
+44. 0
In the case of India a similar relationship is evident, with the

$xception that, while China's visible balance is usually unfavorable,
"
ndia's visible balance of trade is usually favorable.
*It is to be noted that the local customs valuations, and not the quantities, of imports
** shown in Charts D and E.
12
INDIA's FOREIGN TRADE IN MERCHANDISE AND PRECIOUS METALS
[In millions of dollars]
Net | Net exceSS

.*|Net imports .*|Net imports
Year chandise .*.*, Year chandise §§§
ºr)
ports (–) |
of gold and
Silver
º
ports (–)
of gold and
Silver
- - -
- - -
+12 º'
+205.8
tº
+12
ſº..…
1923–24-----
+242.2
+412.8
+177
+147
+305. S +103 || 1924–25- +502.6 +312
+301.8 +145 | 1925–26- +5S1.0 +190
+299.7 +220 | 1926–27_ +283.2 +142
+524. 1 +277 1927–28- +286. S +116
—263. 8 +29 || 1928–29--- +305.4 +113
—55.1
I
+32 |
One of the most important factors in China's silver purchases is

the civil warfare which has disrupted the country for a decade and
more. This has a twofold effect on the price of silver: (a) It creates
a demand for silver for military expenditures and causes privately
beld silver to go into hiding or be sent to the treaty ports for safe
keeping, which tends to raise the price of silver; (b) the º
funds, to some extent, go abroad for supplies, munitions, etc., whic
tends to depress the silver price through the exchange market. A
further depressing influence is the curtailment of production with
a consequent lessening of purchasing power. Large floods and
famines, to which China has been frequently subject, are also re
flected in a lessened demand for silver. The effects of warfare on
the world silver market were evident most recently in 1929 at the time
of the Sino-Russian dispute over the Chinese Eastern Railway.
This dispute, as it became more serious, was a “bull” factor in June,
July, and August. The approaching settlement of the dispute acted
as a “bear ” factor in October. Simultaneously, of course, the con
tinuous civil warfare made itself felt.
India, while subject to occasional political disturbances, is not open
to the same sort of destructive fighting as is China. India’s power
to purchase silver is most effected, under normal conditions, by the
monsoon, the wind which Marco Polo startled Europe by describing
as blowing one way half the year and the opposite direction the
remainder. The southwest monsoon, coming from the sea in Sep
tember, brings indispensable rainfall to the cereal and seed-growing
areas of the south and west of India, while the return monsoon, in
December and January, not yet drained of moisture, brings invalu
able rain to the wheat-growing regions of northern India, the rice
fields of Burma and Bengal, the jute areas and the cotton fields of
Bombay, and later of the Madras Plateau. The southwest monsoon
has two branches, the Arabian Sea monsoon and the Bay monsoon.
The monsoons move in waves, each successive wave bringing rainfall
farther and farther. The success of the monsoon becomes evident
by September, at which time it is reflected in silver prices.
The favorable monsoons over a 4-year period ending in 1925 in
creased India's purchasing power and acted as a stabilizing influence
on the price of silver. §. in chart A, the peaks in the silver
course in the latter parts of 1924 and 1925. In 1926 India's unfavor
able trade was reflected in a lower silver price. º,
13
As with China, political disturbances in India occasion hoarding.

Such disturbances were the chief cause of the rise in the price of
silver in 1922. They stimulate not only hoarding but also “bull ‘’
speculation.
A discussion of the relationship between crop seasons, the Hindu
marriage season, and other events, and silver purchases by India will
be found in Trade Information Bulletin 457, The Bombay Iłullion
Market, from which the following is taken:
In view of the fact that India's imports of bullion are so intimately connected
with its merchandise export surplus—an export surplus accounted for by heavy
shipments of agricultural products—it is quite natural that the crop seasons
should have considerable influence on the demand for bullion from month to
month, and that there should be a marked seasonal fluctuation in the bullion
trade. When the ryots (peasant farmers) of India are in funds from the sale
of their crops they are in a position to invest in gold and silver. Just before
planting time, when they are buying seeds and equipment, and during the grow
ing season they have little to spare, and the demand for bullion subsides
markedly.
One other factor enters into the seasonal demand for bullion, however, and
it is a most important one. This is the Hindu marriage season, which comes
in May, a month considered exceptionally favorable for marriages. As many
as possible take place at that time, and the season generally is one of festival,
When everyone is anxious to appear at his best. The result is a marked in
crease in the consumption of gold and silver for use as ornaments, particularly in
view of the fact that every bride, however poor, receives some kind of a dowry
of gold and silver ornaments. Bullions dealers, banks, and importers prepare
in advance to meet the demand which is sure to make itself felt at this season,
and there is generally a period during the first few months of each year when
a marked increase in the imports of bullion occurs.
The Indian Government has been an important factor in the silver
market since 1926 as a result of committing itself to a policy of sell
ing silver whenever the price seems advantageous. In so doing the
Indian Government has announced that it will try to avoid depress
ing the price of silver inordinately. The last report of the con
troller of the currency of India, that for 1928–29, stated: “Govern
ment announced that they were selling silver from the paper cur
rency reserve * * * but any fear that the Government of India
might dislocate silver prices by immoderate or inopportune sales
has been dispelled by the transactions of the previous year, so that
the announcement had no weakening effect on prices.” It is quite
certain, however, that the sales of silver by India not only must
depress the price but actually do depress it and are discounted by
the silver market. Silver prices dropped in the latter part of 1925
and in 1926 largely in anticipation of the publication of the report
of the Royal Commission on India Currency and Finance, although
other factors were also important; for example, the unfavorable
conditions in India and China, the sale of silver in London by the
Bank of France and by Shanghai, speculation in the yen, and strikes
and boycotts.
MISCELLANEOUS PRICE-DETERMINING FACTORS
Arbitrary governmental measures are important in a considera:

tion of silver prices. This was especially true during the war and
postwar years. The year 1924 was the first postwar year when
economic forces were free to determine the course of silver.
14
Among the war-time measures was the Pittman Act, passed by

the United States in order to make possible shipments of silver to
India for British account. The act, passed by Congress on April
23, 1918, had a stabilizing effect on prices for some months in 1918
and 1919, during which period American silver dollars were melted
and sold at roughly $1 per ounce. The act provided for the replace
ment of 208,900,000 fine ounces of silver, from the product of Ameri
can mines, at $1 per ounce; it also provided for the melting of silver
dollars to supply the demand for subsidiary silver money in the
United States.” Purchases of silver under the Pittman Act com
menced in June, 1920. -
An example of the sensitivity of the price of silver occurred in

1928, when a rumor circulated that France would have to buy silver
for her coinage program. Although the rumor was erroneous, it
bolstered the market for a short period.
Other factors influencing silver prices are the opening of new
mines (that Comstock lode, Broken Hill, Cobalt), steps toward cur
rency stabilization in silver-using countries resulting in added con
fidence in their paper money, new coinage laws, public finances as
reflected in taxation and foreign borrowings and the latter as re
flected again in foreign exchange quotations, changes in the bal
ance of international payments due to oversea investments, immi
grant remittances and the like, changes in the supply of or demand
for copper, lead, and zinc, and strikes, shipwrecks, and other events
occasioning a temporary shortage of silver by delaying delivery.
Speculation, although by nature a temporary influence on the mar
ket, is at times rather important.” Warfare in Mexico has, in the
past, affected production and prices. In China, a period of peace
and industrial progress, raising the volume of production and the
standard of living, may have a marked effect on silver.
RECENT PRICE FLUCTUATIONS
RISE IN 1915–1920
During the war the world-wide preference for hard money and the
flight of gold were major factors in raising the price of silver. The
constantly rising level of commodity prices and the stimulated in
dustrial activity were other strong factors in augmenting the de
mand for silver money.
During the first seven months of 1914 the silver market had been
steady. The swift approach of the crisis arrested demand, and the
price sank rapidly after May. Quotations for future delivery be
came impracticable at the end of July and, because of the desira
bility of restricting credit, as well as the impossibility of guarantee
ing delivery, were discontinued. Some coinage demand arose in
neutral countries, but business with Germany ceased in London,
Indian demand disappeared for a period of nine weeks, and the
* The 1929 report of the Director of the Mint gives, in a footnote on p. 95, the number
of dollars melted under the Pittman Act—259,121,554 for the export to India and
11,111,168 for domestic subsidiary coin.
#An unusual example of the effect on prices of speculation—pointed out by Benjamin
White in Silver, Its History and Romance, p. 239—occurred in 1910. From July 2 to
Aug. 2, and again from Nov. 7, to Dec. 20, severe “squeezes" for delivery in London were
engineered by cornering spot supplies.
15
demand from industry was naturally interrupted. Later in the

year neutral producers of silver hurried supplies into the market.
In November, 1915, it was learned that silver stocks in London
were much smaller than had been thought. This stimulated interest
in silver for its speculative possibilities, with the result that the
price mounted.
The embargo on gold and silver exports from European countries
forced India, then enjoying a prosperous trade, to meet the domestic
demand for rupee coins and bar silver from the currency reserves
kept in India. These progressive additions to the country's metal
lic currency increased the world demand for silver and raised its
price, as did also war risks in the Mediterranean, which made silver
harder to get to India. The demand for rupees was greatly aug
mented because of the large military expenditures in India, Meso
potamia, Egypt, and East Africa, all of which then used Indian
currency.” By August, 1917, the silver value of the rupee exceeded
its exchange value.
The United States Government having fixed the price of silver by
the Pittman Act of 1918, the price in New York remained constant
at $1.011 from September, 1918, to April, 1919. On May 5, 1919, the
Government announced the removal of the official maximum price
and restriction on silver exports. On May 9, similar action was
taken by the British Government, trading in future silver was re
sumed, and—with a strong demand from China—the price moved up.
COLLAPSE IN 1920–21
-
The 1920 collapse in the price of silver, while occurring just

prior to a general collapse of commodity prices the world over,
was precipitated by several events. In 1919 the monsoon in India
was poor and India's balance of trade was unfavorable. The In
dian Government ceased buying silver. Paper rupees began to
replace silver. In November the United States Government decided
to sell silver dollars for gold, exporting the silver in the form of
bars. China, also, which for two or three years had been replenish
ing its silver stocks, ceased buying. A famine in China early in 1920
aggravated the situation; China's exports were dull. Silver having
reached the highest price on record in London, 89%d., on February
11, the United Kingdom, to prevent the illegal melting of its silver
coins, whose intrinsic value then exceeded their face value by over 33
per cent, passed on March 31, 1920, a law reducing the silver content
of the subsidiary coins from 0.925 to 0.500 (effective the following
December).
On June 1, 1920, the United States, as already mentioned, began
to purchase silver under the Pittman Act, and silver recovered
slightly until August.” The continued sale of European silver
coins, however, remained a depressing factor. The adverse conditions
* During the war England spent in India something like £240,000,000 on war supplies.
The demand from outside"India (according to white, op. cit., p. 30i) often called for
80%00 rupees (about 10,000,000 ounces...a month.
Pittman, purchases were completed in May, 1923; this gave rise to an unwarranted
bearish sentiment,
16
continued until the spring of 1921 and were reflected not only in the
demand from the Orient, but also in reduced consumption of silver
in the arts and industries of the Occident. Speculation may be
credited with the fluctuations during the remainder of 1921, with the
cessation of the decline of commodity prices as a “bull” factor.
Another favorable factor in the price of silver during the postwar
ears was the great currency depreciation on the Continent. This
rought into force Gresham's law, giving silver a scarcity value.
PRICE MOVEMENT FROM 1922 TO 1928
The year 1923 was marked by a peak supply. Production of new

silver, which for two years had been rapidly mounting, exceeded the
previous (1912) high, while “other supplies” brought the total to
about 280,000,000 fine ounces. Demand from India continued strong,
however, while favorable exports and disturbances in China continued
to bolster the price. A favorable influence in 1924 was the demand
in Europe for silver for coinage purposes. It is estimated that
50,000,000 ounces were absorbed in that way in Europe alone during
1924.20 Moreover, “other supplies” were less than in 1923, and the
price of silver was accordingly high. . The fact that India and China
were large buyers in 1925, owing to internal disorders in China and
a favorable monsoon in India, has already been mentioned. “Other
supplies” were less than in 1924. Since 1925 the decline of silver
and the increase in total supply have been the dominant features of
the market.
DECLINE IN 1929 a
In the treaty ports of China, where that country’s foreign trade is

conducted, gold sets the price level. Quite naturally the decline in
the price of silver during 1929 reflected itself in a decline in and
cancellation of orders for foreign merchandise. The foreign loans
and indemnity obligations secured on the Chinese maritime customs
revenue were met in full during 1929, only at a cost of 7,947,000 haik
wan taels greater than in 1928.* As a means of self-protection, the
Finance Ministry early in 1930 announced that customs duties would
be collected on a gold basis. China, for a time, gave consideration
to a proposal to levy a duty on silver; this, however, was turned
down upon foreign recommendation. In January. 1930, it was
stated that the immediate loss to the Chinese Government through
the decline of silver was over $10,000,000 (silver).
The adverse silver situation in 1929 was emphasized by persistent
Chinese sales of silver. Another adverse factor, apart from high
world production, was the approaching adoption of the gold stand
ard by French Indo-China, and its consideration in Hong Kong and
Persia. From the beginning of 1930 the value of the French Indo
China piastre was stabilized at 1 piastre+10 French francs. But
Indo-China is not a very important consumer of silver. Were it to
20 The following consumed silver for coinage purposes in 1924 : The Free City of Danzig,
Germany, Ilatvia, Lithuania, Poland, and Russia. The United States similarly consumed
a total of 4,400,000 ounces.
* China Express and Telegraph, Jan. 0, 1930, p. 6.
17
throw on the market overnight its entire stock of silver, the addition
would amount to only a small fraction of the world's annual
production.
The possibility that China will adopt the gold standard, despite
recommendations to that end, are still remote. China has not at
hand, nor can she command, a stock of gold or gold credits such as
would be required. Even were this to occur, and were China to
adopt some form of the gold standard, the Chinese could hardly be
expected to throw up overnight their centuries-old affection for
i. as a medium of exchange, a store of value, and a material for
the arts.
MiLLions of fine ounces

35 o
3oo
Total World Production
(including other supplies)
2 oo
• *
---
..~"
i Oo *** - - - - - - -º-Consumed by Indo
***---------- 2
-------------
-
- - ..--T - --
.--Tºčonsumed by Chino
_se *
so " ...l...........------- - ... . ;... • * * * * * * * * ******
.......... • * * * * * ************* Zººnºs.

inthe United S'ates,Conodo ord England
o
1924 1925 1926 1927 1926 y 1923
CHART F.—World supply of silver, by years, and the estimated absorp

tion by principal consumers 1924 to 1929.
An interesting sidelight on the effect of silver on company profits

may be seen in the announcement of the Hong Kong and Shanghai
Banking Corporation of a reduction of £1 per share in the annual
bonus.* Although the distribution of the bonus represented a de
cline of £160,000, its cost in dollars to the bank was $245,000 greater
than for 1928.
WORLD CONSUMPTION OF SILVER
The following estimates of the distribution of the world's annual

silver production since 1924 are taken from the annual reviews of
Handy and Harman. The item entitled “Otherwise unaccounted
for ” assumes that the entire production of any one year was dis
tributed the same year.
* China Express and Telegraph, Jan. 16, 1930, pp. 35 and 44.
18
BSTIMATED DISTRIBUTION OF WORLD SILVER PRODUCTION
Item 1924 1025 1926 1927 1928 1929
India-------------------------------------------------- 1 108.2 || 1 106.7 91.6 90.0 89.0 81.8

China------------------------------------------------- 1 41. 7 || 1 59.4 73.9 85. 0 || 124.0 136.7
Germany----------------------------------------------|-------- 1 14.3 2 16.7 10.8 12.0
ArtS and manufactures:
United States and Canada------------------------ 28.0 31.0 33.5 33.5 33.5 37.0
Pngland------------------------------------------ 4. 5 5.0 6.0 6.5 6.0 6. 5
Coinage:
United States------------------------------------- 4.4 17.0 6.7 6.5 4.1 2.5
Poland--------------------------------------------|-------------------------------- 6.5 l--------
Russia---------- 1.6 3.5
Netherlands-------- ---------------------------------------------- ---- 1. 3.0
Hong Kong dollars- ---------------------------------------------- ------------- 16.0
Mexico.-------------------------------------------- - - - -------------------
Miscellaneous European countries----------------- 50.0 --------|--------|------------------------

Otherwise unaccounted for "----------------------- 11.0 15.4 26.0 31.4 31. 5 12.5
Total production and other supplies------------- 259. 1 || 252. 1 | 254.3 269. 6 || 308.4 311.5
1 In the source this figure is designated as shipments from abroad; the figures for later years show allow
ances for exports to other countries.
2 In an article in Mining and Metallurgy, November, 1928, p. 487, H. C. Simpson stated: “Africa is
beginning to show quite an increase in the use of this metal (silver).”
Source: Handy and Harman, Annual Reviews, 1925 to 1929.
STATISTICS OF PRICE CHANGES
The following table gives the price of silver in New York from
1914 to 1929, in cents per fine ounce. The prices are the monthly
and yearly averages compiled by Standard Statistics. Figures of
the 1929 report of the Director of the Mint (p. 120) show the high,
low, and average price of silver from 1874 to 1928, inclusive. Prior
to the 1919–20 peak, the high occurred in 1874–$1.29375. During the
interval from 1874 to 1928 the low was $0.47375 in 1902.
London prices are given in the same report (p. 121) as far back
as 1833. The highest price recorded between 1833 and 1928 was
89%d. per standard ounce (0.925 fine) in 1920. Other highs were
79%d. in 1919 and 62%d. in 1859. The lows of the period were
214; d. in 1902 and 1903, and 22d. in 1908.
The average commercial ratio of silver to gold is given in the
Director of the Mint's 1929 report (p. 123) for the years 1687 to
1928. In 1687 the average ratio was 14.94. Thereafter it increased,
rising above 15.00 a number of times, particularly during the first
28 years of the eighteenth century. . The lowest average ratio re
corded was 14.14 in 1760. In 1808 the ratio reached 16.08, the first
recorded crossing by the annual average of the now famous “16 to
1.” That occurred again in 1812 and 1813, but not thereafter until
1874. Thereafter, silver declining in value, the average ratio rose to
39.15 in 1902.” In 1915 the average ratio was 39.84, but by 1920 was
only 15.31, rising subsequently. It was 36.22 in 1927 and 35.26 in
1928.
The following table shows the average index number of wholesale
commodity prices in the United States by months and years for 1914
to 1929:
to *At
1 in 21}} d. per standard
1902–1903. ounces, the ratio of silver to gold stood at approximately
-
43
y 43%
19
MonTHLY AVERAGEs of DAILY PRICE of SILVER IN NEw York

[In cents per fine ounce]
i -
Year || Jan. | Feb. |Mar. Apr. 1 May June July Aug. Sept. oct. Nov. Dec. | *
|
im....] 57 sil 57.5il 38.07 8s. 521 5s 17 5.4; 34.6s. 34.3, 53 2 50 ºil 10,0s 0. s: 54.81
1915----| 48.85| 48.48 50. 24 50. 25. 49.91) 49.03| 47.52
47.16|| 48.68|| 49.38, 51.71, 54. 97' 49.70
1916----| 56.77|| 56.75 57.93| 64.41| 74.27| 65.02 68.51 (7. 85|
62.94| 66.08 71.60, 75.76 65.7
1917----| 75.63| 77.58| 73.86| 73.87| 74.74|* 76.97| 79.01| 85.41 100.70 87 33' 85.89 85.96 81.40
1918....| 88.70 85.72 88.08. 95.35| 99.50, 99.50, 99.62 100, 30, 101. 10| 101. 10, 101, 10 101. 10, 96.80
1919.----| 101.10| 101.10| 101. 10| 101. 10 107.10 110, ſo 106 iſ iſ ſº iii. 5) 119. 10 127. 90 132.00. 111.10
1920----| 132.80 131.30 125. 601 119. 50 102.60 90.80 91.90 96.20, 93.70 83.50, 77.60 64.80; 100. 90
1921----| 65.95 59.32, 56.03| 59.34|| 59.85| 58.51| 60.26; 61.60, 66. 15. 70. 97 (38.23 65.76 62.66
1922----| 65.45 65.31| 64.38|| 66.57| 71.15 71. 15. 70.24| 69.40 69.50, 68.01 65. 18 64.62, 67.58
1923----| 65.71 64.34| 67.53| 66.85| 67.07| 64.84| 63.01; 62.78 64. 22 63.65, 63.82 64.70 64, 88
1924----| 63.44 64.36 63.96) 64. 14|| 65. 52, 66.69| 67. 16, 68.52. 69. 35. 70.87 69.30 68. 10 66.78
i....] §§ ºf ºl ā ºl āś ºf £4 iſ ; i. ºil i. ii., §§ is sº jº
1926----| 67.80) 66.77|| 65.88| 64. 42 65.08 65.51, 64.79, 62.38 60. 57, 54.51, 54. 14 53. 46' 62.01
1927____| 55.80) 57.92 55.31 56.40|| 56. 28' 56.78 56.36, 54. 76' 55.45| 56.04 57.47, 57.97, 56.38
1928----| 57.1Q 57.00, 57.39| 57. 4Q (9.30 30.2%. 59.20, 58.9%. 57.50 58. 19. 38.00 57.30, 58.20
----| 57.00, 56.20, 56.30 55.70, 54. 10 52.40, 52.50, 52.60 51.00 ww wo so aw
#. suspended Aug. 1 to 21. - - - -
* From June 17, 1920, to May 31, 1923, the averages are based on the prices of foreign silver, the price of
domestic silver being retained at $1 by Government purchases under the Pittman Act, which became
inoperative in June, 1923.
Source: Standard Statistics.
REVISED INDEX NUMBERS OF WHOLESALE PRICES IN THE UNITED STATES, ALL

CoMMODITIES
[1926=100)
| Av.
Year || Jan. Feb. Mar. Apr. May June July Aug. Sept. |
-
Oct. Nov. Dec. §

-- | | i —l-–
|
|
1914----| 68.6 | 68.3 | 68.0 .. 6
-
67.4 67. 4
-
67.3 69. 6 7(). 2 (;8.0 67.5 | 67.3 68. 1

1915----| 68.1 68. 6 68.2 .. 7 69. () 68.3 69. 3 68. (; ; 68.3 70.2 i 71.7 74.0 (59.5
1916----| 77.0 | 78.5 | 80.4 .. 7 82.9 82.9 | 83.4 85.1 86.9 91.1 97.4 99.2 85.5
1917----| 102.1 || 104.5 107.7 ... 1 | 120.7 122. 0 | 123. () 124.8 123.5 122.2 122.8 122.0 117. 5
1918----| 125.0 | 122.7 | 126.4 .3 128. 1 129.0 | 132.0 134.3 | 137.5 136.3 : 136.3 : 136.3 131.3
1919----| 134.4 | 129.8 || 131.3 . 0 | 135.3 135.6 | 141.1 144.3 141. 1 1 11. 6 114.5 150.5 138. 6
1920----| 157.7 | 157. 1 || 158.6 .. 5i 167.2 166.5 | 165. § 16.1.4 155.2 144.2 133.4 120.7 154.4
1921----| 114.0 | 104.9 || 102.4 .9 96.2 93.4 93.4 93.5 93.4 94. 1 91. 2 92.9 | 97.6
1922----| 91.4 92.9 92.8 3.2 | 96.1 96.3 99.4 £18.6 99.3 99.6 100. 5 100. 7 96.7
1923----| 102.0 | 103.3 | 104.5 3. () | 101.9 100.3 98.4 97.8 99.7 99.4 98.4 98.1 100.6
1924----| 99.6 99.7 | 98.5 | 3 | 35 ; ; ; ; ;; ; ; )l ; ; ; ; j : 1. . ..
1025----| 102.9 : 104.0 | 104.2 . 9 | 101.6 103.0 104.3 : 103.9 i 103.4 103.6 104.5 103.4 | 103.5
1926----| 103.6 || 102.1 | 100.4 . . 1 | 100. 5 100.5 , 99.5 99. () 99.7 99.4 98.4 97.9 | 100.0
1927----| 96.6 95.9 94.5 .. 7 93.7 93.8 94.1 95.2 96.5 97. () 96.7 96.8 95.4
1928----| 96.3 | 96.4 || 96.0 .4 98.6 | 97.6 98.3 98.9 | 100. 1 97.8 | 96.7 96.7 07.7
1929----| 97.2 || 96.7 97.5 .. 8 95.8 | 90.4 | 98.0 97.7 97.5 | 96.3 94.2 : 94.2 96.5
Source: United States Department of Labor, Bureau of Labor Statistics.
DAILY DETERMINATION OF PRICE
London is the world’s principal silver market because of tradition,

because it is an important financial center, because of its close rela
tionship with the silver-using countries of the Orient, and because
numerous shipping routes radiate from the Thames. That it is a
great banking center makes it possible for London to finance the
bulk of the silver business. The frequent sailings from London to
all parts of the world enable it to deliver silver to most countries
more quickly, on the average, than can other centers. During the
World War, New York (and to a lesser degree San Francisco) be
came very important in the silver market, and for a time America
was the principal factor in determining prices. In postwar years it
has continued to be very important.
20
At present the price of silver throughout the world is readjusted

daily according to the price in London. In that city the price is
“fixed" by four firms, which for many years have constituted the
silver market: Moccatta & Goldsmid (founded in 1684, 10 years
before the Bank of England), Samuel Montagu & Co., Pixley &
Abell, and Sharps & Wilkins. These four firms—with whom are
placed all orders to buy or sell (in London)—meet daily at 2 p.m.
(Saturdays at 11 a. m.) and compare their orders in hand for pur
chase or sale. If the demand and supply, as evinced by these orders,
are seen to be unequal, the previous day's price is altered as much as
is necessary to move the largest amount of silver. This is quite
natural, for the only interest of the brokers is the commission which
they make on the transactions. It may be stated, parenthetically,
that this is one of the few examples of a market being conducted
“with all the cards on the table.” The price is quickly determined
and immediately announced, literally, to all the world. Orders re
ceived later the same day may be executed at a higher or lower price
than that announced, or they may not be executed at all.
There are, in fact, two silver prices in London—the price for spot
delivery (within seven days) and that for future delivery (within
60 days, no days of grace being allowed), delivery being made at
the option of the seller at any time within the period. The price of .
future silver may be above or below the spot price, depending on
local stocks, market outlook, and similar factors. Business is also
done in options, usually two months but sometimes longer, based
upon the price of “future.”
The seller of silver pays his broker no brokerage, the buyer alone
being charged one-eighth of 1 per cent by his broker. As between
brokers that commission is divided, one broker selling to another at
one-sixteenth of 1 per cent and buying at one-sixteenth of 1 per
cent. In other words, the bulk of the day’s sales and purchases may
be merely book transactions, only a fraction of the total consisting of
transactions between the four brokers. The cost of a two months'
option to call or put silver is generally about 2 per cent of the price
plus a brokerage of one-eighth of 1 per cent of the price. During
the war, for a period of four years and nine months ending May 9,
1919, the sale of future silver was suspended.
In New York silver is sold for immediate or future delivery. The
“official" price is determined and issued once a day, usually late in
the forenoon, by Handy and Harman. It is based on the market
price for near-by delivery prevailing on the same day up to the time
the “official" price is determined. This “official” price is the one
used by producers and smelters as the settlement basis for the silver
content of ores purchased by the smelting companies from producing
companies. Due to the fact that such silver contained in ores does
not become available for delivery in refined form for several months,
§: “official" price is lower than
ased.
the market price on which it is .
The price of silver in New York is, of course, strongly influenced
by the price in London; that is, it theoretically represents the cost of
transporting to the United States silver purchased in London.
Actually, however, market conditions in New York are the determin
ing factors. Thus, even on British bank holidays when there is no
21
London price, then New York official price is determined and

published.
Actual commercial transactions in silver in New York are con
cluded at the market price, which is higher than the official price
by from three-sixteenths to one-fourth of a cent. The spread,
however, is said to have varied by as much as 6 cents in times past.
It also varies from time to time during the day.
The market price of silver in New York may vary during the
day according to the strength or weakness of the market or the late
on which delivery is desired. Bids in New York come from various
parts of the world, including China, India, and London; sales may
be for the account of the Far East or for producers in the United
States, Canada, Mexico, or South America.
As an example of the price of silver in New York and London the
following were those announced on March 3, 1930:
New York (in cents per fine ounce) : “Official,” 39% ; bid, 40; asked, 40%.
London (in pence per standard ounce): Spot, 1833 ; forward, 18}}.
()
ſº dº
% 3.
- a R. P. LAMONT, Secretary
';- .. BUREAU OF FOREIGN AND DOMESTIC COMMERCE

EFTWEB TWILLIAM L. cooper, director
App 11:1930
* MARKETS FOR
FRUIT JUICES AND FRUIT SIRUPS
IN CONTINENTAL EUROPE
05
b5 UNITED STATES
},Gº3
e GOVERNMENT PRINTING OFFICE
| WASHINGTON : 1930
For sale by the *Perintendent of Documents, washington, D.C. - - - Price 10 cents

FOREWORD
During the last few years there has been a general increase in
the production of fruit juices and fruit sirups in the United States.
In 1927, the latest year for which data are available, the production
of grape juice for beverages had a value of $5,671,487 and other
fruit juices produced for use as flavoring had a value of $1,878,011.
These figures do not include a considerable quantity of juices made
commercially from fruits other than grapes nor fruit juices pro
duced in homes. Increased consumption has accompanied the
roduction increase, but production has now reached a point where
oreign markets are desirable. The quantity of fruit juice exported
from the United States is not known, but exports under the sta
tistical classification “Fruit juices and other beverages" (exclud
ing mineral waters, flavoring extracts, and malt sirups) have grown
steadily from 317,843 gallons, valued at $416,017, in 1924, to 601,514
gallons, valued at $914,334, in 1928. It is probable that a part of the
increase was due to larger sales of fruit juices abroad. European
countries took 17 per cent of the total exports.
In order to find foreign markets for American fruit juices and
fruit sirups, a survey was made of the production, use, and foreign
trade in those products in European countries. Fruit juices and
sirups are at present used to a rather small extent in the countries
of Europe, but in most of them their use is increasing. There is
a considerable production from domestic fruits, but taking Europe
as a whole, there appears to be a possibility of developing a market
for imported fruit juices and sirups.
The data in this bulletin, submitted by oversea representatives of
the Bureau of Foreign and Domestic Commerce, show the status
of the market for fruit juices and sirups in each country. Informa
tion regarding tariffs and other trade restrictions affecting the sale
of these products in the countries covered, and also the names of
importers and handlers of fruit juices and beverages there, can be
obtained from the bureau, either direct or through any of its district
or cooperative offices.
These reports were compiled in the Foodstuffs Division of the
Bureau of Foreign and Domestic Commerce. That division will
welcome inquiries from qualified American exporters for more
specific information on any of the markets covered in this bulletin.
WILLIAM L. Cooper, Director,
APRIL, 1930.
(II)
MARKETS FOR FRUIT JUICES AND FRUIT SIRUPS IN
CONTINENTAL EUROPE
AUSTRIA
John A. Embry, Acting Commercial Attaché, Vienna
The consumption of fruit juices and fruit sirups in Austria is said

to be rapidly increasing, but the bulk of such juices and sirups are
made locally. The most popular fruit juices are raspberry, lemon,
orange, and apple. It is estimated that over 105,680 gallons of
raspberry juice was consumed in Austria during 1929, an increase of
about 100 per cent over the previous year. This juice was produced
almost entirely in Austria from Austrian, Czechoslovakian, and
Hungarian raspberries. Raspberry is the most popular soft drink
in Austria and is served everywhere in cafés, bars, restaurants, and
quick-lunch stands, either in glasses or in the American-sized soft
drink bottles. Orangeade and lemonade are well liked and can be
obtained anywhere in Austria, but are consumed in much smaller
quantities than the obiquitous “ himbeer-soda '—raspberry juice and
soda water. Most of the orange and lemon juices and sirups con
Sumed in Austria are made locally from oranges and lemons imported
from Italy. These drinks are served in the same manner as the
himbeer-soda.
Recently the sale of apple juice has been encouraged by an active
newspaper and poster advertising campaign, and this drink bids
fair to gain a strong hold on popular favor. The juice is produced
locally, partly from apples grown in Austria and partly from those
imported from Hungary. American apples are too expensive to be
imported for the manufacture of apple juice and are used in Austria
solely as eating apples.
At the present time the only American fruit juice being imported
into Austria in appreciable quantities is concentrated orange and
lemon juice. It is estimated that about 3,000 gallons of concentrated
Orange and lemon juice were imported during 1929. The demand
for these concentrated juices is said to be increasing.
Below are given the imports of fruit juices and sirups into Austria
during 1927, 1928, and first half of 1929, by countries of origin.
IMPORTS OF FRUIT JUICES INTO AUSTRIA
|In gallons]
| First. | First
Country of origin 1927 1928 half of Country of origin 1027 1928 half of
; - i 1929 | | "º
"- — — — — —— |—- —- t
UNsweeteNed i | swºre Eten ed t |
-------------- 2,563 || 4,756 | 1,717 || Germany--------------, 2,324. 706 450
1, 347 2,589 6, 262 || Switzerland-- 53 | 264 I' 53
317 3,700
64,095 | 89,828
793 |
("zechoslovakia-
52,232 || France-------
502
29()
290 .
475
450
132
5,786 5,918 1,480 | Great Britain 53 238 343
608 132 |-------- 'i United States 8() 502 3, 276
1,955 i--------- 132 | ()ther countri 53 450 53
711 6, 182 238 : l
|—|— | Total - - ---- 3,355 2,985 4, 757
77,382 | 113, 105 || 62,854 | Value------------ $7,452 | $9,842 $7,452
...; $52, S65 $93, 780 || $59,475 | |
(1)
2
Fruit-juice pressers sell their products direct to the retailers, cafés,

restaurants, bars, soft-drink stands, etc.; importers, as a rule, sell to
the local fruit-juice pressers. Importers usually grant terms of 90
to 120 days to the fruit-juice pressers who act as their wholesalers.
Terms to retailers are generally 120 days.
Fruit juices are merchandised in jars of 1 gallon and in barrels
containing 6 to 50 gallons. Fruit juices used by bottling works are
usually bought by the barrel; those used by cafés, restaurants, and
bars are usually bought in 1-gallon jars.
I3elow are the current wholesale prices, ex-containers, of the more
important kinds of fruit juices and sirups consumed in Austria:
AUSTRIAN WHOLESALE PRICES OF FRUIT JUICES AND SIRUPS
Equiva- Equiva
Kind
A.
Schillings
per kilo lent per
cents in Kind Schillings lent per
per kilo cents in
pound || pound
|
—-—---——
Raspberry juice------------- 1.85–2.00 11.8–12.7 Concentrated orange juice--- 1.80–2.40 | 11.3–17.2

Raspberry sirup 1. 50–1. 70 | 9.5—10.9 Leinon juice----------- 3.00 23. 6
Orange juice----------- 2, 20-2.40 14.0-1.2 . Lemon sirup 20–2.40 || 14.0–17.2
Orange sirup---------------- 2, 20–2.40 || 14.0-17.2 . Apple juice------------------ 1 0.44 2 5. 6
1 Per liter. 2 Per quart.
BELGIUM
Lucien Putnam, Office of Commercial Attaché, Brussels
No estimate of fruit juice and sirup production in Belgium has

been made. The fruit juices and sirups made include orange,
lemon, red currant, blackberry, pear, apple, grenadine, raspberry,
mint, grape, cherry, prune, and apricot. About 30 firms are listed
as manufacturing these products. In addition, nearly every lem
onade bottler and several brewers manufacture and distribute their
own brand of fruit sirups. A very few brands of bottled lemonade
and orangeade are consumed to some extent, but the Belgian taste
undeniably leans toward a rather highly colored, artificially flavored,
sirupy liquid which differs materially from a pure, natural product.
º of fruit juices were lower in 1928 than in 1927, but dur
ing the first seven months of 1929 the imports had far exceeded
those of 1927. In some cases the bottling of fruit juices and sirups
is performed in Belgium. The following table shows the quantity
imported during 1927, 1928, and the first seven months of 1929:
IMPORTS OF FRUIT JUICES INTO BELGIUM
[In pounds]
- - First seven
Country of origin 1927 1928 months of
- 1929
7,055 10, 582 7,937

- - - - - 24,030 III.
10, 140 -
7,055 13,660 37,479

Total--------------------------------------------------------- 48, 280 32,628 68, 122
3
The weights in the above table include the weight of the glass or
metal containers.
Fruit juices and sirups are sold by manufacturers to the grocery
stores and to cafés and restaurants.
Belgium is a poor market for fruit juices and sirups. The usual
drink of Belgians, when they indulge in the extremely prevalent café
habit, is beer, and a very definite change would have to be brought
about in Belgian taste before any soft-drink habit could be devel
oped. The lack of very hot weather and the Belgian ignorance of
the pleasure of a cracked-ice beverage do not make for progress
in the fruit-juice habit. However, the installation of a few soda
fountains in the larger cities may result in an increased demand.
The usual containers are ordinary glass bottles. In the case of
imported fruit juices and sirups of French and English origin, fancy
bottles are very often found, but the consumers are only the richer
families. -
The most used fruit sirups are grenadine, red currant, lemon, and
orange, which retail, according to qualities, from 5 to 14 francs (14
to 40 cents) per liter. In the case of imported fruit juices the retail
prices vary from 18.50 to 24 francs (52 to 67 cents) per liter accord
ing to brands and qualities.
Sales of fruit juices and sirups are regulated in Belgium by the
royal decree of August 31, 1896. This decree covers pulps, juices,
and preserves, as well as sirups or jelly of any fruit or vegetable
which consist of the principal parts of such fruit or vegetable, cooked
or uncooked, with or without the addition of sugar. Such products
which contain ingredients such as glucose, colors, aromaticals, acids,
or thickenings must include in their denomination the words “glu
cose,” “coloré,” “aromatisé,” “acidulé,” etc. However, for addition
of materials other than glucose the expression “ de fantaisie ' is
allowed; for instance, “Sirop de fantaisie a la grosseille “ (fancy red
currant sirup), while those with the addition of colors or tartaric
acid must be named “ commercial “; for instance, “Sirop de groseille
commercial * (commercial red currant sirup). As a matter of fact,
most of the sirups manufactured in Belgium are “commercial.” The
addition of a small quantity of cherry juice to red currant and
raspberry sirups is allowed, as well as a proportion of alcohol not
exceeding 3 per cent. It is absolutely prohibited to add to sirups,
jellies, preserves, etc., any antiseptic, poisonous coloring matter, or
other toxic substances; also to sell, expose for sale, keep in stock, or
transport for sale products containing such materials, as well as
spoiled, products. The descriptions named above must be written
on the labels in uniform and apparent types and must be mentioned
on invoices and bills of lading. The containers must show the name
and address of the manufacturer or the seller, or at least a trade
mark which is regularly registered in the country. Infringement of
this royal decree is punishable according to stipulations of the Penal
Code.
CZECHOSLOVAKIA
Sam E. Woods, Assistant Trade Commissioner, Prague
Nearly every factory which cans or preserves fruit in Czechoslo

Vakia produces fruit juices and sirups. Raspberry juice or sirup
4
is produced and consumed in the largest quantity. When the yield

of the berry crop is good, quantities are exported to the neighboring
countries. Smaller amounts of apple, apricot, cherry, strawberry,
blackberry, and other fruit juices are produced and consumed.
Owing to the great consumption of beer in Czechoslovakia, the
amount of fruit juices and sirups used in the preparation of bev
erages is perhaps smaller than in other countries, although it is
estimated that three-fourths of the total consumption can be ac
counted for in this way. The balance is used in various ways, but
principally as sauces for pancakes or desserts.
Lemon, orange, and pineapple juices are also used in Czechoslo
vakia and aré imported principally from France, Italy, and the
|United States.
The quantity of fruit juices and sirups produced or consumed in
Czechoslovakia is not known, and it is not possible to secure esti
mates. As the State Statistical Office lists fruit juices and sirups
with wines or preserved fruits, the foreign trade can not be deter
mined except imports from the United States, which in 1928
amounted to 34,170 pounds. It is thought the Czechoslovakia im
ports only juices and sirups which are not produced in the country.
Fruit juices and sirups are retailed in grocery, confectionery,
or delicatessen stores. The manufacturer sells through jobbers or
employs traveling salesmen who call on the retail merchants. The
traveling salesmen and jobbers are usually paid a commission of
10 per cent of the invoice price. The invoice price is generally from
40 to 50 per cent lower than the retail price. Credit terms vary
from 60 to 90 days, often longer, with 2 per cent for cash within
30 days.
Fruit juices, and, sirups are generally imported in demijohns,
casks, or barrels. The importer usually bottles it before selling it
to the retail merchant.
The retail price for sweetened raspberry juice or light sirup ranges
from 13 to 16 crowns (38 to 47 cents) for a bottle weighing 1 kilo,
lemon and orange sirup 20 to 30 crowns (59 to 89 cents) per 1-kilo
º
quart).
and apple cider 10 crowns per liter (about 27 cents per
DENMARK
Harry Sorensen, American Commercial Attaché, Copenhagen
Notwithstanding existing adverse climatic conditions, Denmark

has a fair-sized and increasing production of fruit and berries. Fruit
growing, however, is organized not on an industrial but rather on a
“garden º’ basis. For this reason, as well as for the already men
tioned climatic reasons, the quality of the fruit is not so high as it
might be and often falls short of the requirements for table fruit.
The result is that large quantities of fruit of good taste but of rather
poor appearance are available to the fruit-juice industry at very low
prices.
The Danish fruit-juice industry embraces at present quite a large
number of establishments, of which only four, however, represent
about 90 per cent of the production.
The production of fruit juice during the last four years has been
as follows:
I’ounds
1925----------------------------------- --- ...-------- 2, 740, 31S
1926------------------------------------------------ 2, 47%, 7%
1927--------------------------------------- ... 2, 71 S. 272
1928------------------------------------- - - - - -- - -- 3, ():5:3, 371
The volume of production, it will be observed. is slowly increasing,

and concurrently with this increase in volume there has also been a
rather marked in provement in the quality of Danish juices, owing
largely to the steady improvement in the quality of fruit used as
well as in the methods of manufacture.
The production during 1929 in all probability exceeded that in
1928, as the supply of fruit was exceptionally large and the quality
unusually good.
Fruit sirups were unknown in Denmark until a few years ago and
are as yet used only to a very small extent. There are two Danish
producers of fruit sirup. Those two supply the entire domestic
demand for fruit sirups.
The Danish market for fruit juices and fruit sirups is a relatively
small but slowly growing one. At present consumption is estimated
at around 3,300,000 pounds, valued at approximately 1,800,000
crowns (about $500,000), as compared with about 10 or 15 per cent
less 10 years ago.
Of the total sales of fruit juices and sirups, fully 90 per cent are
supplied by the domestic industry. The sales of imported fruit
juices have continued to decline and will, judging from present indi
cations, drop to an even lower level as competition from the domestic
industry is growing keener.
The most popular Danish fruit juices are currant, raspberry,
cherry, elderberry, strawberry, and goosel)erry. The sale of other
kinds of fruit juices is negligible.
The Danish producers usually sell direct to retailers and, in some
cases, direct to large consumers. The domestic juice is bottled in
34-liter bottles or %-liter bottles, which are returnable. Orders are
&#. filled and bottles returned by parcel post. The Danish fac
tories usually send out price lists to the retail trade and large con
sumers during the late spring, and prices are quoted for fall de
livery. Later orders are filled at a somewhat higher price, usually
ranging from 10 to 20 ore (2.7 to 5.4 cents) more per bottle. The
current f. o. b. factory prices on domestic-made fruit juices are as
follows, exclusive of containers:
PRICES OF DANIs H FRUIT JUICES PER }; -IITER Bottle,
Sweetened i Unsweetened
i
Kind of juice
Ore Equivalent ()r Equivalent
in cents in cents
130 34.8 130 34.8

169 42.8 170 45.5
160 42.8 170 45.5
2. 53.5 ; 220 54.0
14() | 37. 4 | 14() 37. 4
i
6
The fruit juices, as well as the fruit sirups, are packed in boxes
containing 12 bottles and are often shipped by parcel post.
The imports of fruit juices, as already mentioned, are very small
and apparently declining, and of fruit sirups there is practically
no importation. The present importation of fruit juices probably
accounts for 5 to 8 per cent of the total consumption. Germany,
Czechoslovakia, and France are the chief sources of importation,
with Germany leading. Practically no American fruit juices or
fruit sirups are being sold in the Danish market. The French,
German, and Czechoslovakian juices are usually imported in casks,
barrels, or crates containing from 200 to 500 liters (53 to 132
gallons).
The importers demand a profit of about 5 per cent, the wholesalers
20 per cent, and the retailers 25 to 35 per cent. These relatively high
profits, when added to the rather high tariff, tend to make prices on
imported fruit juices too high to permit competition with the do
mestic industry.
From an American point of view, as will appear from the above,
the I)anish market is not a very promising sales field. The high
development of the domestic industry, together with the relatively
high tariff rates and the system of direct-to-consumer selling of the
I)anish manufacturers, tend to make the local market more or less
a closed field to American exporters.
FINLAND
Osborn S. Watson, American Commercial Attaché, Helsingſors
Soft drinks are not much in demand in Finland. Unflavored

soda water marked “Vichy is consumed in relatively large quan
tities. Soda water with lemon flavor enjoys a much smaller demand.
Malted-milk drinks, milk shakes, and other similar drinks are
practically unknown. Light beer is quite generally consumed in
all of the cities and towns. Plain water, and to some extent soda
water, is flavored with sirups and fruit juices and sold retail at 1
mark (2% cents) per glass of approximately 1 gill. This type of
drink, however, is not very popular and sales are small.
I'ruit juices manufactured in I’inland include juices, sirups, and
flavoring extracted from whortleberries, blueberries, raspberries,
black currants, and strawberries. I)eciduous and citrus fruit juices
are manufactured in small quantities from imported lemons, oranges,
pineapples, and bananas. Apples are not grown in commercial
quantities in this country, and cider is neither manufactured nor
sold here.
There are a few small jam, juice, essence, and sirup factories in
Finland, eight in all in 1927, with a total of 46 employees on their
combined pay rolls. The production at these plants in 1927 totaled
142,279 bottles (for the most part 3%-liter bottles) and 204,488 liters
in gross containers. Berry juices produced during 1927 were valued
at 7,350,700 markes ($185,240), and other extracts and essences,
aggregating 15,885 pounds, were valued at 1,123,100 marks ($28,300).
Mineral-water manufacturers and bottlers manufacture their own
essences and flavoring to some extent. During 1927, 30.565 bottles
(of 14 liter) of such essences, were produced by mineral-water.
7
bottlers. Some of this was sold as fruit extract, but the bulk was
used by the bottlers themselves in flavoring mineral water. Berry
juices valued at 77,900 marks ($1,960) and other essences and
extracts valued at 1,242,000 marks ($8,940) were used in 1927 in
flavoring locally manufactured soda water.
Official Finnish foreign-trade statistics show a growing demand
for foreign berry and fruit juices. The following statement gives
the imports and exports of fruit juices and berry sirups since 1924:
Imports: I'ounds | Exports: l'ounds
1924 1924–--------------------- 49
1925 73
1926_ 75
1927 7, 800
1928 :3, 968
Local factories sell their goods through agents and travelers direct
to the retailers, grocers, and mineral-water distributors.
The demand in Finland for beverages flavored with fruit, juices
and extracts is small. Price is an important factor in the trade, and
American exporters should quote lowest prices c. i. f. Helsingfors
in order to compete successfully with local and imported extracts.
Cheap beverages, served in tea rooms, shops, or cafés, should sell very
well; it is believed, if properly advertised. Drug stores have not ex
panded into the general retail trade in Finland as they have in the
United States, and are, in fact, apothecary shops in the true sense of
the word, many not even handling medicinal soaps or prepared medi
cines. A few tea rooms operate, but serve little besides tea, coffee.
or chocolate with cakes or sandwiches. Hotels usually carry sup
plies of mineral waters, flavored and unflavored. There is practi
cally no demand for different varieties of soft drinks, and none are
kept on hand. A nationally known confectionery manufacturer is now
constructing a large block in Helsingfors, one floor of which will be
devoted to a tea-room service. This firm is interested in all kinds
of confectionery and sweet beverages, and American firms mighi.
succeed in interesting it in beverage sirups, fruit juices, and other
flavorings.
Ice cream served in Finland is usually flavored with vanilla,
although some fruit flavorings are used to a very small extent in
Helsingfors and the other large towns of Finland. I’lavorings are
usually added in the form of sauces poured over vanilla ice cream,
and in the summer fresh fruits are used for the same purpose.
The buying public in Finland appears to be quite receptive to new
ideas, and American products which can compete in price find a
ready sale. It is believed that ice cream manufacturers might
profitably be approached by American fruit juice and essence manu
facturers. In approaching these firms, lowest prices, quoted c. i. f.
Helsingfors, should be given, and samples forwarded for the pur
pose f showing the local trade exactly what may be expected when
goods are ordered.
Malt drinks and locally manufactured nonalcoholic beer might he
said to compete with fruit and essence flavored soft drinks. I)uring
1927, malt beverages to the amount of 9,377,317 bottles and 8.898.321
liters in gross were manufactured in Finland. Mead, used during
the holiday season in the month of May, aggregating 190,026 bottles
and 305,839 liters in gross, was locally produced and consumed.
101762—30—2
8
Nonalcoholic beer to the amount of 2,854,664 bottles and 3,283 bar

rels of 25 to 30 liters was also produced in Finland during 1927.
FRANCE
George W. Berkalew, Assistant Trade Commissioner, Paris
The consumption of soft drinks in France is increasing slowly, but

in many quarters the prejudice against them is still strong. In
the more expensive cafés and restaurants, customers when ordering
soft drinks insist upon having the juice squeezed from an orange or
lemon at the table, in order to be sure that fresh fruit is used
exclusively.
The ordinary bottled soft drinks on the French market are sold at
exceedingly low prices to the less expensive cafés and retail groceries.
The average wholesale price for these products in 7-ounce bottles
varies from 45 to 60 centimes (1% to 21% cents), and the price to con
sumers ranges from 1.50 to 3 francs (6 to 12 cents), depending on
the kind of retail outlet.
The possibilities of creating a market in France for bottled nat
ural fruit juices are decidedly remote as a result of the negligible
demand for those products and pure-food regulations preventing
the sale of fruit juices which contain artificial preservatives. More
over, there is no firm operating in France at the present time which
manufactures a fruit juice for distribution to consumers in bottled
form. Nevertheless, one company operates a large sirup plant in
the south of France using exclusively fresh fruits for the manufac
ture of its products. This method is exceptional in the country,
where citric acid or imported extracts customarily comprise the in
gredients.
The annual sales volume of fruit sirups is considerable. They are
consumed in private homes, cafés, and hotels, mixed with plain or
charged water, as a nonalcoholic drink. Lemonade and orangeade,
inferior in quality to beverage sirup, are manufactured by innumer
able small firms in Paris and the provincial cities. The various
brands placed on the market are manufactured from citric acid or
fruit extracts and pure sugar.
According to trade practice, it has been found that retailers will in
variably substitute the domestic product with a high margin of sales
profit for the more expensive imported beyerages. Furthermore, for
soft drinks of this character the predominant factor is price rather
than quality. The experience of dealers and bottlers of imported
fruit drinks and concentrates confirms the fact that original sales
are relatively easy to make, but that repeat orders are infrequent.
In fact, the only effective method of securing a sustained volume of
sales is by the creation of a preferential consumer demand through
advertising. The practice of substituting inferior domestic drin
for better-quality imported products can be combated only by the
establishment of a trade name or brand sufficiently popularized to
assure consumer insistence.
The various factors which characterize the French market for
fruit drinks and fruit juices may be briefly summarized. In the
first place, the high consumption of wine and other alcoholic bever
ages greatly restricts potential sales. In the second place, bottlers
9
refuse to increase the price of bottled soft drinks through the use
of fresh fruit juices in their preparation. In the third place, the
tendency of retailers to push the sale of products on which they
attain iſe highest margin of profit presents a serious obstacle to the
importation of the more expensive fruit juices and concentrates.
Finally, the necessity of creating consumer demand and educating
consumer taste involves an extensive advertising expenditure which
neither the French distributor nor the American manufacturer is
inclined to assume. Nevertheless, in the face of the adverse market
characteristics presented, several American companies have already
taken definite steps to establish agents and secure distribution in
France.
It is logical to assume that a large permanent business can be
attained only as a result of an extensive initial advertising campaign.
Imports during recent years, according to official reports, have
been as follows:
Lemon juice: Pounds
1926 --------------------------------------------- . (5, 8:3-4

1927----------------------------- --- . . . . .. . 12. 346
1928--------------------------- - - - - - - - - - -- - - - - - - 79. S07
1929, first 8 monuhs. ---- - - - - . . . ... . .. . . . . .3(), (544
Orange juice : 1927 – – . . ---...-- - - - - - -- - - - - - - - - - - 1, 1:12
HUNGARY
By Walter M. Slavik, Assistant Trade Commissioner, Budapest
The fruit juices produced in Hungary include Mahuleb cherry,

raspberry, red currant, and, in smaller quantities, apricot, peach, and
apple. These fruit juices are used chiefly for refreshment beverages
and also in the production of fruit liquors, and are made from the
juice extracted from fresh fruit and from the sirup from boiled
fruit. The annual production amounts to less than 2,200,000 pounds.
Imports, which come mainly from Czechoslovakia, show a down
ward trend.
It is believed that the possible increase in demand is small. Con
Sumption is seasonal, mostly in the summer.
Fruit juices and sirups are usually sold on a commission basis by
sales agents to wholesalers and retailers and also direct from the
factory. Fresh-fruit juices are shipped in barrels and the sirups in
bottles. The wholsale prices average from 18 to 20 cents per net
kilo.
ITALY
De Forest A. Spencer, American Trade Commissioner, Milan
The manufacture of by-products of the Italian fruit industry

has developed to such an extent that imports of fruit juices have
diminished almost to the vanishing point, and exports have steadily
increased in the last few years. The production of grape juice in
1928 amounted to 5,500,000 pounds, with the price averaging around
$12.70 per 100 pounds, while production in 1929 was 6,600,000 pounds,
with the average price about $10 per 100 pounds. , Large quantities
of orange, lemon, and citron juice are also produced and exported.
10
LATWIA
F. C. Sommer, Acting Commercial Attaché, Riga
Fruit juices are produced in Latvia from domestic fruits and berries,
as well as from synthetic flavors imported from abroad, in quantities
sufficient to cover the local requirements. There are several plants
manufacturing fruit juices. The sirups and flavors produced locally
are apple, strawberry, raspberry, black currant, huckleberry, red
bilberry, cherry, lemon, and orange.
Imports of fruit juices into Latvia in 1928 were as follows:
Poundis
Germany ------------------------------------------------ SS2
Sweden.--------------- 4
Switzerland 11
United States_______ 267
Total---------------------------------------------- 1, 164
Value--------------------------------------------- $148
The following table gives imports of fruit and liquor essences into
Latvia in 1926, 1927, and 1928:
IMPORTs of FRUIT AND LIQUOR Essen CES INTO LATVIA
[In pounds]
Country of origin 1926 1927 1928 Country of origin 1926 1927 1928
Germany 2,012 | 1, 149 853 4

England- 1,043 716 443 22
Denmark 4 115 7 | 4
Netherland 193 97 13
tance_ _ _ _ _ 73 64 46 || 1,435
Switzerland.-------------- | 4 51 42 $1,858
In 1928 there were imported 1,164 pounds of fruit and berry juices
(chiefly orange and lemon), and the exports of fruit juices of local
products amounted to 500 pounds. As to imports of synthetic
essences, their quantity has decreased from 3,400 pounds in 1926 to
1,435 pounds in 1927, which indicates that home production is
increasing.
Fruit juices and synthetic flavors are handled by local wholesale
drug stores. Occasionally the local liquor distilleries import their
requirements direct from foreign manufacturers.
Owing to the highly developed domestic fruit-juice industry and
the small demand, it would be difficult to increase the demand for
foreign products.
As most of the juices are produced through the use of local
products, very little foreign competition among foreign products
exists, except in orange and lemon juices, which are imported into
Latvia via German ports. . For the cheaper grade of juices syn
thetic flavors are imported from Germany, Switzerland, France, and
England, but this business is decreasing because of the development
of the domestic industry.
The juices are sold in small bottles up to 0.3 liter and retailed
at from 1.50 to 1.80 lats (29 to 35 cents) per bottle for fruit and
11
berry sirups and 0.80 lats (15 cents) per bottle for synthetic flavors.
Only bottles and glass jars are used to market these products.
Foreign-made fruit juices and synthetic flavors are usually im
ported in large tin or glass containers and refilled on the spot. By
this method a certain amount of import duty is saved because the
duty is assessed on gross weight.
In view of the rapid development of the home industry, there ap
pears to be no future market for foreign fruit juices in Latvia, as
the quantity of lemon and orange juices imported is largely replaced
by cheap substitutes manufactured locally and imported from
neighboring countries.
NETHERLANDS
Paul S. Guinn, Acting Commercial Attaché, The Hague
The principal fruit juices produced in the Netherlands are de

rived from oranges, lemons, currants, raspberries, and gooseberries.
As oranges and lemons are not grown in the country, they are
imported and squeezed locally. The most popular fruit juices are
derived from oranges, lemons, and currants (mixture of red and
black currants), in order of importance. The first two are used
as raw materials by the mineral-water factories for the manufacture
of nonalcoholic drinks, while the currant juice is exclusively em
ployed for cooking purposes as a dressing for puddings, rice, and
other foods.
There are numerous small plants in the Netherlands producing
soft drinks, and competition among them is unusually severe.
Soft drinks are made in two forms, the concentrated product and
the “ gazeuse,” which contains some fruit juice mixed with water
and carbonic acid. The latter is ready for consumption, while the
former has to be mixed with plain water or soda water.
“ Ranja ” is probably the most popular soft drink on the market.
It is a concentrated orange juice pressed from the fresh fruit. It
is a domestic product and is widely advertised. Ranja is sold in
bottles containing ().S liter and retails at 1.25 florins (about 50
cents) per bottle. In addition, there are numerous brands of orange
concentrates retailing at from 70 to 90 Dutch cents ($0.28 to $0.36)
per bottle containing 0.7 liter.
There is no standard wholesale price for concentrated fruit
juices, as the discount depends upon the size of the order. It is
stated that the cost price at the factory aggregates about 60 Dutch
cents ($0.24) per bottle. It is said that the bulk of the business is
made up of the cheaper grades. Ilemon sirup is sold to some extent
also in concentrated form and as “ gazeuse.” Prices of the concen
trated product are practically the same as for orange sirups.
Pineapple sirup is probably the least important of the soft
drinks made and offered for sale. It is produced from imported
canned pineapple.
The so-called gazeuse soft drink is produced locally and is quite
popular. The bulk of the output is handled by cafés and restaurants.
Large quantities are sold by rural cafés along the principal traffic
routes and by summer resorts. The beverage is put up in small
bottles containing about 0.3 liter. It retails at 15 to 20 Dutch cents
12
($0.06 to $0.08) per bottle, depending on the standing of the café

serving it. It is sold by the manufacturers direct to the retailers
through their salesmen, and all middlemen are eliminated.
With respect to conserving agents, the Netherland law prescribes
that no other preserving materials may be used than sulphuric acid
(not in excess of 50 milligrams per liter), benzoic acid and salicylic
acid (not more than 400 milligrams per liter). Alcohol may be used
to an amount of one-half cubic centimeter of ethyl alcohol per 100
cubic centimeters.
The following regulations affect the sale of fruit juices in the
Netherlands:
A fruit juice sold under the name of a certain fruit may contain only juices
of that fruit and no others. The juice of orange must have a specific gravity
of 1.042 at a temperature of 15° C. and may not contain any other ingredients.
Imports of fruit juices are very small, and exports greatly exceed
them. Fruit ethers are used chiefly by the confectionery industry.
One of the leading American producers of a concentrated fruit
juice started introduction of its product about a year ago. This
product has been advertised widely and much propaganda work has
been conducted. In spite of all efforts, only a restricted demand has
as yet been created. The product is imported in concentrated form
and bottled locally.
The following table shows the foreign trade of the Netherlands in
fruit juices and ethers in 1925, 1926, 1927, and 1928, with the coun
tries of origin and destination in 1928.
NETHERLAND FOREIGN TRADE 1N FRUIT JU ICES AND lºt HERS
[In pounds]
-- - - Essences
Fruit juices, º and fruit
Year and country unsweet- “...it’ ethers, with
ened "drink S
- or without
alcohol
iM ports
98, 312 47, 330

* - 96, 244 49,484
, 100 90, 358 35, 200
1928: –
Germany------------------------------------------------------- 55, 415 4, 204 11, 334
Belgium 41, 834 75, 552 1,393
Great Britain-. 10, 410 34, 215 i 22, 670
5,759
139,952 . 46,641
639, 420 167,927 419,053

- 230, 312 527, 700
2, 364, 434 302, 253 526,403
1928:
Germany------------------------------------------------------- 669,427 5,024 (1)
Belgium--------------- - 11, 534 6, 779 (1)
Great Britain-------- 2,069, 478 8, 898 (1)
United States---------- 108 9, 147 (1)
Netherland East Indies 247, 477 68, 521 (1)
* Data not available by countries.
13
NETHERLAND FOREIGN TRADE IN FRUIT JUICES AND ETHERS.–Continued
i L"--- * * :--> Essences

Fruitjuices'. and fruit
Year and country unsweet- | and soft' ethers, with
ened "inks or without
alcohol
EXPORTS-continued i
1928–Continued
Weden.--------------------------------------------------------- (1)
Denmark- §1)
France-----
Switzerland- (1)
Ireland.------- (1)
South Africa-- (1)
anada------- (1)
British India- (1)
a0---------- (1)
British West Africa- (1)
North West Borneo- (1)
Other countries------------------------------------------------- 21, 373 5, 237 | (1)
Total--------------------------------------------------------- 3, 197,409 || 250,423 626, 512
1 Data not available by countries.

NORWAY
Gudrun Carlson, American Trade Commissioner, Oslo
Norway produces a very small number of fruits, but its berry

crop is usually a large one. With the large quantities of berries
coming on the market in the short season, the supply exceeds local
demand. Although considerable quantities of berries are exported,
particularly to England, there is still more than sufficient surplus
to be used for the production of fruit juices.
The principal kinds of berries and fruits used are cherries, rasp
berries. red currants, and red whortleberries (tytteber). Straw
berries, black currants, and some other wild fruits and berries are
used to only a small extent. The bottled juices are concentrated
enough to dilute with water.
According to the food regulations, pure fruit juice with sugar
added is to be called “saft.” while with artificial flavorings the prod
uct may be called “sirup.” Lemon and orange drinks are more com
mon under the latter heading, because fruits for the pure juice must
be imported.
Norway has developed some export business in fruit juices. Im
ports are considerably less than exports, as the following figures
show:
NoFWFGIAN FOREIGN TRADE IN FRUIT JUICES
| [In pounds]
|
Imports
| Year Exports -
Sweetened Other 1
|
*---------------------------------------------------------------- 51,458 842 4,974

*---------------------------------------------------------------- 43, 589 1,259 5,558
1926- -- ---- - 79, 564 2,008 5,412
”---------------------------------------------------------------- 55, 538 1. 534 9,702
*---------------------------------------------------------------- 52, 900 2,566 4,736
! Includes all juices not sweetened and those containing alcohol content up to 12 per cent.
14
A small quantity of juices with alcohol content of 12 to 21 per cent

is imported. In 1924 such imports amounted to 99 pounds, in 1926
to 324 pounds, and in 1927 to 154 pounds. Sources of imports in
clude England, France, Denmark, and several other countries, but
no figures are available showing the exact quantity from each.
The present trend of imports does not indicate any marked in
crease in demand. There is no form of prohibition on the use of
wines, so that this fact must be taken into consideration when
estimating the potential market.
Norway's climate is too cold, even in summer, to encourage large
consumption of soft drinks. Soda fountains, although introduced
to a small extent in Oslo, have not reached a state where they would
be a factor in greatly increasing the use of fruit juices and sirups.
Norway's water is excellent, both in taste and from a sanitary view
point, so there is no particular inducement to drink bottled products
instead.
Bottled fruit juices are sold, as a rule, through grocery stores.
Most of the imported goods are bought directly by wholesalers,
because the amounts are usually too small to reimburse an agent for
handling. Prices vary with grade, quality, whether sweetened or
not, and the kind of fruit used. Metric measures are used, and
large-sized bottles are most popular with the trade. Bottles come
in two sizes, the larger holding 750 grams (26% ounces) and the
smaller holding half that amount. The present retail prices range
from 1.40 to 2.75 crowns ($0.37 to $0.74) for the larger bottles.
Red-currant juice and tytteber juice are lowest in price, while cherry
and raspberry are highest.
POLAND
Clayton Lane. American Commercial Attaché, Warsaw
The bulk of fruit juices and sirups consumed in Poland is home

made, from Polish-grown products such as raspberries, strawberries,
cherries, billberries, red and black currants, etc. Small quantities
of lemon and orange juices are manufactured in factories, chiefly
in the form of highly concentrated essences for use as flavoring for
alcoholic and nonalcoholic beverages. Other factory-made juices
and sirups are not very popular and are used almost exclusively in
restaurants in connection with desserts, and in private homes only
for preparation of fruit-flavored brandies. The home-made sirups
(raspberry, billberry, and black currant) are widely used with tea,
drinking water, brandies, and also for medicinal purposes.
Owing to the character of production, it is not possible to ascertain
the quantity of fruit juices and sirups consumed in Poland. Ac
cording to official statistics, slightly over 220,500 pounds of fruit
juices and sirups were produced in all Polish factories engaged in
fruit preserving during 1927, while in 1928 the quantity increased to
1,386,700 pounds. This increase was not due to an increase in de
mand, but reflected merely the expansion of the related industry of
fruit-wine manufacturing. Imports were negligible in 1928, amount
ing to about 42,000 pounds, valued at $5,600, as against exports dur
ing the same year of more than 220,500 pounds, valued at $21,000.
The bulk of imported fruit juices comes from Czechoslovakia, while
practically all exports go to Germany. During the first three quar
15
ters of 1929 exports of fruit juices from Poland increased slightly

as compared with the corresponding period of 1928, while imports
declined, Czechoslovakia and Germany remaining the only countries
of supply and destination, respectively.
Fruit sirups manufactured in factories are sold in glass bottles,
usually of a very small size, containing sufficient quantity of the sirup
for flavoring the normal-size bottle of pure brandy retailed by the
Polish Alcohol Monopoly, which is 0.75 liter. Larger bottles, however,
are also on sale. The retail trade is carried on by wine merchants,
general food stores, and groceries. Retailers ordinarily get their sup
plies from local representatives of manufacturers. Soda-water stands
and small fruit shops also keep small supplies of beverage sirups
throughout the summer months for mixing with soda water. It
should be observed, however, that the price of about 3 cents for a
glass of soda water with a teaspoonful of sirup makes this beverage
rather unpopular among the regular clientele of soda-water stands,
who prefer pure soda water at about one-half cent per glass.
On the other hand, the generally poor quality of factory-made
fruit sirup is an obstacle in popularizing it among the more discern
ing and wealthier class of consumers. As a refreshment beverage,
Polish-made fruit wines, which are very cheap, are becoming quite
popular. A bottle of such wine, often comparable with imported
grape wines, retails at 30 or 40 cents. I)uring 1927 Polish produc
tion of such wines amounted to 124,424 liters (34.214 gallons), and
in 1928 it increased to 225,970 liters (62,142 gallons).
RUMANIA
Sproull Fouché, American Commercial Attaché, Bucharest
The consumption of soft drinks in Rumania is small and is con

fined almost entirely to the peasants and lower classes of city
dwellers, which classes constitute about 90 per cent of the total popu
lation. No soda fountains exist, but at all coffee houses, wine shops,
and street stands soft drinks (all known as sirups) can be bought at
3 to 6 lei (about 2 to 4 cents) per glass. Sirups are of various flavor
Ings and colors, and are usually prepared with carbonated water.
Bottled soft drinks can also be |. at the better-class coffee
houses, wine shops, and restaurants and cost 10 to 20 lei (6 to 12
cents), depending upon the pretentiousness of the establishment
where sold.
Rumanians are fond of congregating at drinking places and res
tuarants, and readily adopt changes and innovations. They have
always been a wine and coffee drinking people, having inherited
these tastes from their Latin and Turkish ancestors, and coffee houses
and wine º: are found in all of the cities and towns.
The chief fruit juices and sirups produced in Rumania are made
of raspberries, sour cherries, wild and cultivated strawberries, red
Qurrants, and imported lemons and oranges. By far the most popu
lar are raspberry juice and sour-cherry juice. There are no statistics
indicating the quantities of fruit juices and sirups produced in
Rumania, but according to estimates of leading manufacturers and
dealers some 800 to 1,000 hectoliters (21,134 to 26,417 gallons) of
16
fruit sirups are manufactured annually in that country. The

demand for pure juices without sugar is very small, but beverage
sirups enjoy a fair market, especially in summer, when practically
each “bodega " (saloon bar) and “cofetaria " (coffee and cake shop)
in the larger cities serve sirups, not to mention the numerous primi
tive street soda fountains, which, however, sell mainly cheap drinks
flavored artificially. In view of the recently increased taxes on beer,
wine, and other alcoholic beverages, which were the chief competi
tors of fruit drinks, it is not improbable that the consumption of
sirups will increase in the near future, especially in view of the fact
that the importance of propaganda describing the advantages of con
suming fruit derivatives has begun to be recognized by the trade.
Sirups and fruit juices are retailed in 1-liter bottles at prices
varying from 60 to 120 lei (36 to 72 cents), according to the quality
of the product. While prices are generally constant, poor crops
affect them from time to time.
The local wholesale price of the most popular sirups is 40 to 60
lei per kilo (11 to 16 cents per pound). The factories sell direct
to the groceries, saloons, and soda fountains. The “cofetarias”
produce their own fruit juices and sirups and retail them at 25 to
30 per cent higher than the manufacturers’ price. Some of the
leading factories employ commission agents, but the number of these
is small, most of the transactions being carried out directly. It is
interesting to note that fruit-sirup manufacture in Rumania is
intimately connected with liqueur manufacture, as most of the lead
ing liqueur factories produce also sirups and fruit juices. The
merchandising of sirups is thus similar to that of liqueurs, the
saloons, cafés, and groceries being the chief purchasers of both
products.
The latest available import statistics cover the first quarter of
1929. During this period 139 pounds of pure fruit juices without
sugar or alcohol were imported, while imports or sirups and fruit
juices with sugar, or alcohol amounted to 130 pounds. It will be
seen from these figures that imports are negligible, and domestic
production fully satisfies the market. The smallness of imports of
fruit juices and sirups is caused mainly by the high import duties,
which give special protection to agricultural products. During 1925,
before the protective tariff of 1927 was passed, imports of fruit
juices and sirups amounted to 75,492 pounds. Of that quantity
35,408 pounds came from France, 18,472 pounds from the United
States, and 15,408 pounds from England. As fruits are plentiful
in Rumania, the protective policy of the Government will in all
probability not be changed in the near future as far as fruit juices
and sirups are concerned. The trend of the import trade of these
products is downward, especially as a movement for the intensifica
tion of the production of fruit derivatives is on foot and enjoys the
support of the Ministry of Agriculture. -
Although the high import tax and the competition of local prod
ucts contribute to the decline of insports, the better classes of the
population are, always inclined to consume foreign products of
recognized good quality, even if the prices are considerably higher
than those of local goods. It must be borne in mind that 80 per
cent of Rumania's population consists of peasants who live in a very
17
primitive manner and that the well-to-do class is restricted in num

ber, especially at the present time, when the economic crisis is acute.
At the same time, larger hotels, bars, and high-class groceries could
always dispose of a limited quantity of high-quality foreign sirups.
SPAIN
Charles T. Hohenthal, Office of Commercial Attaché, Madrid
Spain, having an abundance of fruits, has excellent facilities for

producing a wide variety of fruit juices and beverage sirups. How
ever, it confines the greater part of its production to “mostelle’’ or
unfermented grape juice, unfermented apple juice, orange juice, and
lemon juice. It produces a substantial amount of orange and lemon
sirups, some sirups from most of the commonly known fruits of the
North Temperate Zone, and some banana sirup.
Most of the grape, orange, and lemon juices and sirups come from
Valencia and Andalusia. Apple-juice production is centered in
Galicia, Asturias, and northwestern Spain in general.
These juices and sirups are used principally for making beverages
during the hot months, and the sales season lasts from May to Octo
ber, at which time consumption drops off precipitately in favor of
such drinks as beer and coffee. There is also some use in the pastry
and confectionary trades for sirups, but it is said to be rather small.
Although there are no available statistics to show the imports,
exports, or production of fruit juices in Spain, dealers state that
there is practically no importation aside from that of individuals or
of first-class hotels which cater to the tastes of tourists. In either
case, it is said to be negligible. Spain also imports liquors, princi
pally from France, in small quantities, and although they are called
“fruit, creams” by the local trade, they can hardly be classed as
fruit sirups. -
One important American patented fruit concentrate is being im,

ported into Spain in increasing quantities. The manufacturer of
this product has made a highly organized effort to survey the market
and establish concessionaires who buy the sirup, bottle the beverage,
and sell it to the consumers. That concern has spent a considerable
amount of money in training concessionaires, conducting propa
ganda campaigns, collecting information, establishing patent rights,
and so on. It has been stated that no real profits are expected from
the enterprise for a considerable length of time, as the market-devel
opment program is understood to require more money than could be
expected from the early profits under the most favorable conditions.
Fruit juices and sirups are sold by the manufacturer through
grocery stores, both wholesale and retail, and direct to cafés and
bars. Sirups are also sold to bottlers of soft drinks direct from the
factory. In the cafés, bars, hotels, etc., it is common to serve the
customer by pouring a certain amount of the sirup into a glass and
setting a siphon of charged water beside it, although soda-fountain
service is used also. It is customary in Spain to have from one to
three recesses during a theater performance, during which the audi
ence indulges in refreshments or smoking. Consequently, most
theaters maintain bars.
According to some of the leading dealers in this line in Madrid,
the demand for fruit juices and sirups shows an upward trend, but
18
there is only one way to accelerate its movement—through advertis

ing. Large-scale advertising is now being carried out by the one
American firm mentioned before, the results of which can not yet be
commented on. This type of marketing campaign, however, seems
impractical for the average exporter because it involves considerable
expense and waiting for profits.
Wines are abundant and reasonably cheap in Spain. However,
with few exceptions, such as the Andalusian “manzanilla,” they are
used more as foods than as refreshments. Champagne ciders, on the
other hand, are used preferably as refreshments. Vermuth, which
is consumed in large quantities, is used as an appetizer.
Mineral waters are also abundant and reasonably priced. There
is a great variety of both medicinal and table mineral waters, and
there are two brands, Mondaris and Solares (named after the towns
in northwestern Spain where they are found), which are used not
only medicinally, but also as a table beverage. They can be had in
practically every café, dining car, hotel, or restaurant. These min
eral waters might be considered as competitors of fruit juices, but
they are more formidable competitors of foreign-produced mineral
waters. In fact, France is the only country which has successfull
exported mineral water to Spain. On the other hand, the Spanish
exports of mineral waters are probably six or seven times greater in
value than the imports.
Beer is consumed in large quantities in Spain. It is a strong
competitor of other refreshment drinks and has the great advantage
of being popular all year round, whereas fruit juices and sirups are
consumed principally during the hot months only.
Unfermented grape juice and apple juice are sold in 1-pint and
1/3-pint bottles. Juices of oranges and lemons are often supplied in
wooden barrels to the shops where they are used during the season.
Fruit sirups, such as orange and lemon sirups, are sometimes sold
in fancy bottles patterned after the form of the fruit itself, although
quite often the standard cylindrical 1-pint or 1/3-pint bottle is ad
hered to. The bottles are packed in wooden boxes generally con
taining a dozen, although in a few cases boxes containg a half
dozen bottles are used. To prevent breakage in transit, packing of
cork trimmings or straw coverings for the bottles is commonly used.
With regard to fruit sirups, the prices of the manufacturer to the
wholesaler average between 325 and 350 pesetas (about $49 to $53)
per 100 pint bottles, and are characterized by very little fluctuation,
according to local dealers. Retail prices are, on the average, about
20 per cent higher than wholesale prices. A 43-pint drink made
from fruit sirup and soda water served in a café costs from 30 to 50
centimos (4.35 to 7.25 cents), and a similar drink of orangeade or
lemonade costs from 50 to 60 centimos (7.25 to 8.7 cents).
In view of the fact that, fruit juices and sirups are natural prod
ucts of Spain and that the fruit-products industry is being con
stantly strengthened and encouraged, it does not seem likely that
foreign fruit juices or sirups would find either a large or a profit
able market here. However, assuming that the attempt is going to
be seriously made, it is believed that steps should be taken with re
gard to cooperating with the distributor in advertising: , Prices must
be low enough to compete with local products, and a high standard
19
must be maintained in quality. To combat matural difficulties,

there must be found some definite sales argument which will show
why the imported product should be preferred to the domestic prod
uct. Once a demand is created, it will be necessary to maintain con
stant vigilance over the representative in order to keep him pushing
sales.
The logical houses to represent fruit juices and sirups are the
dealers ºoversea products who sell fancy imported preserved fruits
as well as locally produced fruit juices and sirups, or a strong firm
engaged in producing soda waters. -
SWEDEN
T. O. Klath, American Commercial Attaché, Stockholm
Many kinds of fruit juices are produced in Sweden, but the follow
ing, listed in the order of their importance from the standpoint of
consumption, account for about 95 per cent of the total output:
Raspberry, orange, lemon, wild strawberry, cherry, whortleberry,
blueberry, apple, and pineapple. The principal users of fruit
juices in Sweden are the manufacturers of soft drinks and confec
tionary. Beverage sirups are not produced.
The total production of fruit juices in Sweden increased from
126,700 gallons in 1925 to 155,700 gallons in 1926 and 160.500 gallons
in 1927, according to official statistics. Production statistics for
1928 are not available. That foreign manufacturers have met with
very little success in their efforts to enter the market is evidenced
by the fact that only $16,985 worth of fruit juices were imported
into Sweden in 1928. France and Czechoslovakia are the leading
foreign suppliers, as is shown by the following tables.
IMPORTS OF FIRUIT JUICES INTO SWEDEN
County of origin 1926 1927 1928
IN ("ASKS Pounds Pounds | Pounds

74, 842 42, 926 47, 234
52,000 45,490 53,215
1, 534 8, 234 5,357
$18,860
3,452
The fruit juices imported in casks have not been sweetened by

the manufacturer. The Swedish importers sweeten and bottle these
fruit juices and sell them to the retailers at about 54 cents per liter.
20
The fruit juices that are imported in other containers have been
sweetened and bottled by the manufacturer. The imported fruit
juices are used to only a very small extent, if at all, by manufacturers
of soft drinks and confectionery; they are sold to the public chiefly
by retailers of groceries, fruits, etc.
The manufacturers of soft drinks maintain that the total cost
of making, fruit juices from either home-grown or imported fruit
is so low that it would not be advisable to import the juices. The
high import duty, is largely responsible for making the landed-in
Sweden price of fruit juices of foreign origin so high. The trade
is of the opinion that imports of fruit juices will decrease from
year to year. Exports are extremely small.
The products with which fruit juices must compete in the
Swedish market are the natural and synthetic salts that are made
from fruit juices. Of course, beer, mineral water, etc., can also be
considered competitive products, because if they were not sold the
demand for soft drinks containing fruit juices would be greater than
it is. In order to sell to j manufacturers of soft drinks
fruit-juice quotations should be very low.
SWITZERLAND
O. B. Moussman, Office of Commercial Attaché, Berne
Many different kinds of fruit juices and sirups are manufactured

in Switzerland, though beverage fruit sirups predominate. A special
variety of fruit juices for making ices and jellies is also manufac
tured locally. The most common fruit sirups are raspberry, lemon,
orange, strawberry, black and red currant, cherry, blackberry, and
grenadine. Ice and dessert juices are made of strawberries, rasp
berries, red currants, and apricots. Beverage sirups are served in
restaurants as well as extensively used in homes, and are served with
water, usually about one-sixth sirup to five-sixths water, plain or
carbonated. The other kinds of sirups (juices) used for ices are
diluted with an equal part of water and used without any addition
of sugar.
A more recent addition is “pomol.” This is pure dehydrated
apple juice, which is diluted when used with 7 parts of water to one
part of juice. Owing to Switzerland's abundant apple crop, the cost
of production is low, and its manufacture is carried out on a large
Scale. -
There are two varieties of seasonal fresh fruit juices: “Sauser”

and “most.” Both are popular and widely used during the vintage
and apple-crop seasons, which follow closely one after the other.
“Most " is fresh grape juice and “ sauser is freshly pressed apple
juice. The 1929 harvest of apples destined for production of sauser
alone totaled 133,378,300 pounds. Most is very popular, and al
though it is only a seasonal beverage, it would practically kill the
market for American grape juice.
Fruit juices are imported for consumption and for the manufac
ture of sirups. The following tables give imports of fruit juices,
condensed or otherwise, without sugar, with or without alcohol.
21
- .
IMPORTS OF FRUIT JUICES INTO SWITZERLANI)
[In pounds]
| First 9 | First 9
Country of origin 1928 months Country of origin 1928 months
of 1929 of 1929
I -
818, 180 560, 780 | Italy--------------------------|---------- 3,740

5,940 8, 140 | Netherlands---- -- 1, 100 ||----------
3,080 ---------- Other countries--------------- 2, 200 11,000
11, 4, 920 ---
5, 720 ---------- | 849,860 596,420

2, 640 4, 840 $66,616 $49, 236
Fruit sirups are sold in bottles and in cans. Smaller quantities,

up to 1 liter, are sold in bottles. The ordinary sirups can be had in
bulk; that is, the housewife can bring a bottle and ask for 1 liter
or less of any sort of sirup. Special sirups of the more expensive
varieties are imported and sold only in sealed bottles. Larger quan
tities are sold by the kilo. The usual quantities are in lots of 5 or
10 kilos.
Sirups and fruit juices are sold primarily by wine shops, grocers,
cooperative stores, pastry shops, and drug stores.
A certain demand for American fruit juices already exists. One
of the main reasons is the highly developed hotel industry which
caters annually to thousands of tourists, including Americans. The
greatest demand is for orange and lemon juices and sirups. Con
sidering the local production, however, it is doubtful whether a really
large demand could be developed within the next year or two. How
ever, the Swiss subagent for a soda-fountain company estimates that
he will be able to place 50 such installations in Switzerland and in
this connection to develop a good demand for soft drinks.
The principal Swiss fruit juices and sirups are those manufactured
y three Swiss firms. Those manufactured by two of the concerns
are extensively sold everywhere, while the other firm is known prin
Şipally for its apple juice. Foreign fruit juices and sirups are to be
found only in special delicatessen shops which carry foreign food
Specialties.
As already mentioned, the principal containers used are bottles
and cans. As regards packing, it should be the same as that of
canned fruit packed for overseas shipment.
enzburg “Hero” beverage sirups retail at the following prices:
Raspberry. strawberry, and black currant, $2.22 per 5-kilo tin
“an and $0.58 per 1-liter bottle: red currant, cherry, and black
berry, $2.13 and $0.56, respectively; and orange, lemon, and grena
dine, $1.93 and $0.53.
enzburg “Hero” sirup (juices) for making ices (strawberry,
...spberry, currant, and apricot) retail at $0.17 per 14-kilo tin,
$20 per 4-kilotin, and $0.53 per 1-kilo tin.
Pomol” retails at $0.73 per bottle (0.75 liter) and at $0.40 per
half bottle. -
Wholesale prices are not known and are difficult to ascertain, as

the trade is cautious and unwilling to give out information.
O.)
--
I)iscounts given by dealers to purchases of greater quantities

vary. For instance, for a purchase of 5 to 12 liters a 5 per cent dis
count is granted; from 12 to 18 liters a 7 per cent discount is given.
The complete scale of such discounts is not known; also it varies
slightly, depending on the dealer.
O
[by
$3.
- ... BUREAU OF FOREIGN AND DOMESTIC COMMERCE

* * WILLIAM L. COOPER, Director
RECEIVED
Apr 19 1930
0. S. U. LIBRA
REIGN TRADE
OF THE UNITED STATES
IN THE CALENDAR YEAR
1929
HF
105
22 e5
0&4.
WASHINGTON : 1930
For sale by th
t
*Superintendent of Documents, Washington, D.C. - - - - Price 10 cents
FOREWORD
The foreign trade of the United States for the year 1929 reflected a
continuation of the trends of recent years. Exports of merchandise
totaled $5,241,000,000, or 2 per cent more than the year before, and
imports $4,400,000,000, an increase of 7% per cent. Exports were
greater in value than in any other year since 1920, and when allowance
is made for price changes they made a new maximum record. Imports
were slightly less in value than in 1926, but solely by reason of a decid
edly lower average level of prices of import commodities.
There was a further noteworthy expansion in our exports of finished
manufactures—as much as 12 per cent over 1928; this increase, which
occurred especially during the first four months of the year, was the
cause of the gain in aggregate exports, since agricultural products,
chiefly cotton, showed a decrease. In 1929 many major items reached
new maximum levels in export trade, conspicuous among which were
various types of machinery and electrical apparatus, automotive
products, and gasoline; total exports of machinery amounted to
$613,000,000, of petroleum and products to $561,000,000, and of auto
mobiles (including parts and accessories) to $539,000,000. These
groups ranked second, third, and fourth among our export com
modities, being surpassed in value by raw cotton only. A decrease
in the value of shipments of cotton and grain partly offset the gain in
foreign sales of factory products.
The growth in value of imports was due primarily to larger pur
chases of raw materials and semimanufactures for our factories; there
was also a substantial increase in the value of imports of finished
articles. The increase in the value of imports was less pronounced
than the increase in quantity, for sharp declines appeared in the aver
age unit prices of many import commodities. Approximately one
half of the major import items showed larger quantities than in any
earlier year, and if adjustment is made for price declines the quantity
index for all imports registered an increase of one-seventh over 1928
and a new maximum level.
In the geographic distribution of foreign trade the value of exports
to those continents taking chiefly finished manufactures showed the
greatest increases, and for South America the gain was as high as 12
per cent. Exports to Europe and Asia were slightly less than in 1928
as a result of their smaller purchases of farm products. Imports from
each continent increased in value as compared with 1928, the gains
for South America, Europe, and Asia being particularly pronounced.
MARCH, 1930.
This is the eighth of a series of annual bulletins on foreign trade (previous issues
Trade Information Bulletins Nos. 104,225, 332,387, 460, 537, and 602) prepared
in the Division of Statistical Research. The division also prepares annually a
bulletin on foreign trade for the fiscal year ending June 30. The issue for the
fiscal year 1928–29 is Trade Information Bulletin No. 572. More detailed statis
tics of foreign trade are contained in the Monthly Summary of Foreign Commerce
of the United States and the annual report on Foreign Commerce and Navigation
of the United States.
(II)
FOREIGN TRADE OF THE UNITED STATES IN 1929
By Grace A. Witherow, Division of Statistical Research
GENERAL TREND IN EXPORTS AND IMPORTS
Total Exports and Imports.

Exports of merchandise totaled $5,241,000,000, which was 2.2 per
cent more than in 1928, and the largest value for any year except
those from 1916 to 1920; they were two and two-fifths times greater
than the average value for the period 1910–1914, and about one-fifth
Chart I.-MERCHANDISE EXPORTS AND IMPORTS (1891–1929)
e ILLIONS OF DOLLARS
9 I-I-I-I-I-I-I-T-I I r—H-T—T-T—T-T—T-I-T-I-T-I-T-I-T-I-T-T-I-T-TT-T-I
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1–1–1–1–1–1–1–1–1–1–1–1–1–1–1–1–1–1–1–1–1–1–––––––––––––––.
1891-1895|1896-1900|1901-1905||906-1910|1911-1915/1916-192O1921-1925||926-1930
cALENDAR YEARs (*soo-1)
more than the average for the period 1921-1925. The percentage
increase in quantity of exports closely paralleled the advance in their
value, since there was little change in the average unit value as
*. with 1928. Higher average unit values of heavy iron and
steel, copper, and lubricating oil were counterbalanced by lower
F. for cotton, motor trucks and busses, and passenger automobiles.
or the past three successive years the export price index has fluctuated
only slightly, standing about 25 per cent #: than in 1913.
(1)
2
Imports aggregated $4,400,000,000 during 1929—an increase of

$309,000,000 over 1928; this, total was only slightly, less than for
1926, the record year since 1920. As compared with the average
value for the period 1910–1914, imports were two and three-fifths
times greater and as compared with the average for 1921–1925 the
increase was 27% per cent. The total value of imports during the
last few years has been greatly affected by price delines of a number
of commodities. In 1926 the value of rubber imports reached a total
of $506,000,000, whereas in 1929 the value amounted to only $241,
000,000, notwithstanding the fact that a much larger quantity was
imported; this was owing to a falling off in the average price from 55
to 19 cents per pound. As compared with 1928, there were declines
in the average import prices not only of rubber but also of a large
proportion of other leading commodities, including sugar, coffee,
cocoa, hides and skins, and tin. In fact, when an adjustment for
price changes is made, there appears to have been a gain of approxi
mately 14 per cent in quantity of imports over 1928, in contrast with
an increase in value of 7% per cent. As compared with 1926, the
quantity increase was even larger. (See Table 11.)
Table 1.-Exports, Imports, and Balance of Trade of the United States
NotE.—Data cover period beginning July 1, 1876, and ending December 31, 1929.
[Values in millions of dollars)
Merchandise - Excessimports
of exports
(–)(+) or
Exports
|
Yearly average or year || TT R Per M | Mer
- eex- cent er- -
º ports of º imports chan- ; Gold | Silver .."

Total | *.*|foreign
chan- ºf "P"
| were of dise exports º er
dise chan
dise -
–––––– ––– - -
664 13 493 72.8 || +18.4 —12 +9 +182

775 17 667 84.2 +125 –21 +11 +114
726 13 717 97.1 +21 +3 +13
1891–1895– 876 16 785 88.0 | +107 +38 +20 +165
1896–1900– 1, 136 21 742 64. 1 | +416 –24 +27 +419
1901–1905------------------ 1,427 27 97 66.9 || +482 +1 +23
1906–1910– 779 1,751 28 1,345 75.6 +434 —15 +14 +433
1911–1915– 2, 332 39 1,712 72. 2 | +658 –3 +23 +678
1915–1920 1 6, 417 105 || 3, 358 51.5 +3, 163 –149 +79 +3,093
1921-1925------------------ 4, 310 87 || 3,450 78.5 + –265 +10 +692
1910–1914 (fiscal)----------- 2, 166 2, 130 35 | 1,689 78.0 +477 +17 +20 +515
1913 (calendar)------------ 2, 484 || 2,448 36 1,793 72.2 +691 +28 +27 +746
7 171 3,904 49.3 |+4,016 || +292 | +150 +4, 457
148 5, 278 64. 2 |+2,950 –95 +26 2,
106 || 2,509 55.9 |+1,976 —667 –12 +1,297
67 3, 113 81.2 +719 —238 –8 73
77 3,792 91.0 | +375 —294 –2 +79
93 || 3, 610 78.6 | +981 –258 +36 +759

91 || 4, 227 86.1 | +683 || +134 +35 +852
97 | 4,431 92.1 +378 –98 +23 +303
107 || 4, 185 86.0 | +681 –6 +21 +695
98 || 4,091 79.8 |+1,037 | +392 +-19 +1,448
5, 157 84 | 4,400 84.0 -175 +19 +633
1 Period July 1, 1915, to Dec. 31, 1920.

3
Merchandise export trade for a long period is shown by Chart I

and Table 1, while the amount and percentage of increase or decrease
in the foreign trade of 1929, as compared with various preceding years,
are presented in Table 2. Exports have shown a comparatively steady
growth since 1876, except that during and immediately following the
period of the World War the values grew enormously owing not only
to quantity increases but to tremendously inflated values, followed by
a great drop during 1921 and 1922, the period of deflation. Since 1922
there has been another period of expansion which has continued almost
unbroken for 7 years. If allowance is made for price fluctuations the
quantity of exports expanded about 50 per cent since 1922. (See
Table 11.) The trend of import values has been similar to that of
exports, except that the expansion during the war years was not so
eat. The increase in recent years, particularly in the quantities
imported, has been even more marked than that in exports.
Table 2.—Increase or Decrease of Foreign Trade
[Amounts in millions of dollars]
|
Exports including
reexports General imports
l
Yearly average or year
: Amount Per cent Amount Per cont
-
1929 as compared with—

1910-1914 (fiscal)------------------------------------------- +3.075 +142.0 +2, 711 +160.5
1921-1925 (calendar)---------------------------------------- +844 +19.2 | +950 +27.5
+36.8 +1, 287 +41.4
+14.2 : +790 +21.9
+6.7 +174 +4.1
+9.0 –31 —.7
+7.7 +215 +5.1
+2.2 | +300 +7.5
Quarterly and Monthly Movements.

Practically the entire gain in the value of exports in 1929 over the
preceding year was confined to the first four months of the year;
during May, October, November, and December export values fell
below those of the same months of 1928. As a result of the influence
of large changes in shipments of agricultural products, exports usually
reach a low point in the early summer, rise to a peak in the fall,
and gradually decline throughout the winter and spring months. In
1929 the daily average exports for January, February, and March
did not fall below the previous December figure, as is usually the case
but were somewhat higher, owing to a very marked expansion in the
exports of finished manufactures. . While the seasonal expansion
during the fall was less pronounced than in most recent years, the
decline in December was more marked. Although the value of ex
ports in the fourth quarter was much smaller than in the correspond
ing quarter of 1928 it was slightly larger than in that quarter of 1927.
Except for December, the monthly values of imports exceeded those
of the corresponding months of 1928, and except for June, Novem
ber, and December, those for the corresponding months of 1927.
Imports showed the usual seasonal trend, reaching their peak in the
early part of the year, declining during the summer, and showing a
moderate expansion in October. However, in December imports de
4
clined to a value lower than for any corresponding month since 1923.
Table 3 shows the total value of exports and imports for each quar
ter of the past three years, and Table 4 shows similar data by months
for seven years. In Chart II the monthly data are reduced to a
Chart II.—DAILY AWERAGES OF TOTAL MERCHANDISE EXPORTS AND
IMPORTS
MILLIONs of Dol-LARs (baily averages) -
2sſ+++++TTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTH
2O
15 Poor's N N
^
A N
\
ſ\ -\ M
V
*- •* : ** - AFVN,
i v A \7. A 4-A V 7--- / \, • A-f w ~~\
O rNA /AYºYX AVN w
--
w
wº-
vºv -
A
VTV. r *S* WZ
A ,”vº.
A *
w v#.-/700/-/s
* ~ *
• y
-
ol-------|--|--|--|--|--|--|--|--|--|--|--|--|--|--|--|--|--|--|--|--|--|--|--|--|--ul-ul-ul
1922 1923 1924 1925 1926 1927 1928 '3%2-2)
daily average basis in order to eliminate fluctuations caused by the

varying number of days in the months.
Table 3.−Exports, Imports, Per Cent Change, and Balance of Trade, by Quarters
NOTE.-Exports include reexports; import figures are for general imports.
Per cent change in

merch and is e
trade as com Excess of exports (+) or
Merchandise
pared with cor imports (–
responding quar
Period ter 1 year before
l
Mer
Exports Imports Fxports Imports chandise Gold Silver
1927
January–March---------------- 1, 201 1,046 +6.8 —16.1 +155 –75 . +6
April–June.----- 1, 165 1,077 +7.6 +2.1 -H88 –56 • +5
July–September--- 1, 142 1,030 –4.9 +1.1 +112 –4 +5
October–December------------- 1, 357 1,031 –3. 1 –7.1 +326 +129 +5
1928
January–March---------------- 1, 203 1,060 +.2 +2.2 +133 +120 +5
April–June------ 1, 175 1,017 +.8 —5.6 +159 +253 +5
July–September--- 1, 180 984 , +3.3 –4.5 : +195 +63 +3
October–December 1,570 1,021 +15.7 —1.0 +549 –43 +6
1029
January–March---------------- +18.0 +4.9 +297 –98 . +4
April–June------ } %|
1,203
},1, 164
{} +2.4 +14.5
July–September--- - 1,221 1,074 +3.5 +9, 1 +39
+147 –77
–71 i +5
+4
October–December------------- 1,397 1,040. —11.0 +1.8 +357 +70 +7
5
Table 4.—Monthly Merchandise Exports and Imports

Exports, including reexports | General imports

Month - !- - --- - - - -, -- Tºo -- -------
1923 | 1924 1925 | 1926 1927 1928 1929 1923 |1924 |1925 1926 1927 1928 1929
,--- - ----— — — — . — I- –|- ——--—
January------- 335 | 395 446 397 410 411 488 320 296 || 346 417 357 33% 3%
February----- 307 || 366 || 371 353 372 . 371 . 442 § 332 || 333 387 311 351 369
March-------- 341 || 340 || 454 374 409 421 400 398 320 385, 443 378 380 || 384
April---------- 325 || 347 || 398 388 415 304 425 | 364 324 | 346 308 376 345 || 411
May----- - 316 || 335 | 371 357 393 || 423 385 373 , 303 || 328 321 347 354 | 400
June--- - 320 307 || 323 338 357 389 393 º 274 325 336 355 317 | 353
July---- - 302 || 277 | 340 368 342 * 403 287 279 || 320 330 319 318 353
Žižus...... ài ài
September----| 381 || 427 | 420
§ #| || | 3 | 254
# 287
3; 350
448 || 425 || 422 437
§ 343
3; 342
3. . 320
. ||. 351
;
October------- 399 || 527 | 491 455 489 550 , 529 § 311 || 374 377 , 356 355 391
November----| 427
December----- 491 || 494
446 | #8
468 480
465 A.
408 54;
470 442
427 20,
288 2.
333 31,
397 37;
359 #
331 3; # 338
339 311
Balance of Trade.
The excess of merchandise exports over merchandise imports in
1929 fell below the high figure of the preceding year—$1,037,000,000–
but it was still very large, amounting to $841,000,000. (See Table 1.)
During the first 10 months of 1929 imports of gold were heavy, owing
to high interest rates and reduced lending abroad by United States
citizens. During November and December, exports of gold were
considerably larger than imports; this reversal of the gold movement
followed the withdrawal of foreign funds after the stock market break.
For the year as a whole gold imports exceeded exports by $175,000,000,
as against a net export of $392,000,000 in 1928, while the gold placed
under earmark for foreign account in the United States increased
$55,000,000 in contrast with a decrease of $120,000,000 in 1928. The
value of net exports of silver amounted to $19,000,000, approximately
the same as a year earlier.
The par value of foreign loans floated in the United States decreased
greatly during 1929, amounting to $706,000,000 as compared with
$1,488,000,000 in 1928. Our net loans to foreign nations are not so
large as these figures indicate, for foreigners are buying back or paying
off many of their own securities or buying many American securities,
at the same time that we are buying theirs. In fact, it is estimated
that the net capital made available to foreigners on loan account in
1929 was approximately $500,000,000 less than in 1928 when it was
$962,000,000. Tourist expenditures and other invisible items included
in the international balance of payments were approximately the
same as in 1928.
Table 5.-Exports of Agricultural and Nonagricultural Products

Note.—Data for 1896–1920 are for fiscal years ended June 30, all other are for calendar years. Agricul
tural products are exclusive of forest products. Iłeexports are excluded.
-
Agricultural Nonagricultural | | Agricultural Nonagricultural

products products products products
Yearly average Percent
er cen
v.º.TPercenyl er Cen
Year | ". er ('el)
t ... rer
er cent
Value | ºf." Value | oft." | value ºf value ºf:
752 66.2 384 33.8 | 1922 50.0 1,881 50.0
875 61.3 552 38.7 44.5 2,270 55.5
964 55.1 787 44.9 | 46.9 2,388 53. 1
1,159 49.7 | 1,173 50.3 44.3 2,683 55.7
2,642 42.1 3, 632 57. 9 38.6 2,805 61.4
39.6 2,874 60.4
1921-1925------ 2,013 46.7 2,297 53.3 37. 0 3, 167 63.0
1926-1929------ 1,814 36.9 || 3, 100 63. 1 32.8 3, 464 67.2
Change in Character of Exports.
A noteworthy feature in export trade has been the change in the
proportion of agricultural and nonagricultural products constituting
the total. (Table 5.) In the 5-year period 1896–1900, agricul
tural products made up 66 per cent of the total value of our exports.
While the value of agricultural exports increased greatly during the
war period, so that for 1916–1920 it was three and one-half times as
much as 20 years before, the value of nonagricultural exports ex
panded even more rapidly throughout these two decades, or by at
least ninefold. Consequently, in 1916–1920 agricultural exports had
fallen to 42 per cent of the total. During the postwar depression
(1921–22) the value of exports of nonagricultural products showed a
greater decrease than that for farm products, and in 1922 these two
classes were approximately equal in value. Since 1922 exports of
finished manufactures have expanded very rapidly, whereas in general
the value of foreign sales of farm products has shown little change,
with the result that the relative position of the two groups is reversed
as compared with 30 years earlier. In 1929 there was a considerable
decline in exports of farm products, and nonagricultural commodities
were 67 per cent of our total exports.
Table 6.-Share of United States in Imports and Exports of Leading Countries
NoTE.—Values in millions and tenths of millions of dollars. . Data for each country cover calendar years,
except for Canada, which is the fiscal year ended March 31, following the year stated, and for Australia,
which is the fiscal year ended June 30, except for 1913.
Exports to United States Imports from United States
- Per cent of total Per cent of total

Country Value exportS Value imports
1913 | 1925 | 1928 1913 | 1925 | 1928 1913 | 1925 | 1928 1913 | 1925 | 1928
Argentina----------------. 24.4|| 65.4|l 66.5 4.7| 8.3| 19. 1 72, 5, 188.5||1186.9| 14.7| 23. F| 1 24.7
Australia.-- - 12.6 42.1 2 89.4| 3.5 5.7|2 13.0. 53. 1 180.6| 200. 9| 13.7| 24. 25.1
Belgium-- - 20, 5| 67. 1| 67.5 2.9| 9.6 || 8.1. 80.3| 105.0 81.0 9.0 12.3 9.3
Brazil--- - 101.8 221.3|216.0 32.2' 45.1| 45.4 50.9| 102.3 117. 5 15.7| 24.8| 26.6
Canada- - 163. 4|475.0 500. 2 37.9| 36.1| 36.7 396.3| 609.7 868. 1| 64.0 65.8 68.6
Ceylon-- - 12. }| 51.1 2 36.1| 16, 6| 29.8. 2 23.0 .. 8 3.2 25, 1 1. 3 2 5 2. 3. 5
Chili---- _| 30, 4: 88.4 2 63.2 21 3| 39.2 & 31.3| 20, 1| 41.0|| 2 38.4 16.7| 27.8|2,29.7
China----- I 27, 5, 120, 2 90.3 Tø.3| 18.4 12.8 25.9 119 7|145.6 Tó, 0 14 §§ 17, 0
Colombia- - 14.7; 68. 6 1 94.5 44.5| 82.2 185.9 7.4 42.9| 1 52.2 26.7| 49.2 1 47.9
Cuba---------- - 131. * 264. 2 202.5, 80.0 74.6 72.8 75.3| 187.2 128.9 53.7| 63.0 60.8
Czechoslovakia -------- | 22. 4 34.6|------ 4.0 5.5|------ 33. 1 34.0------ 6.3 6.0
Denmark------ -| 2. º 2.4] 2.7| 1.1 .. 6 -23. 3| 71.2 60.9| 10.2] 12, 4 13.1
Egypt.--- _| 12, 3, 41.7 30 5 7.9| 14.2 10.9| 2.6 10 5 13.4 1.9| 3.6 5.2
France-- _| 81. é 147.6|| 130, 6 6.1| 6.6 6. 5 173. 5. 304.2 243 1. 10.7| 14 3| 11.6
Germany----------------- 170, 0, 143.7| 189.9 7.1| 6.9| 6.6 407. 6 522.7| 483 6, 15.9| 17.8 14.4
India, British------------- 69. 6 141. 3 140 3| 8.9| 9.8 11.7| 14.8 50.3| 61.5 2.5| 6, 1| 6.8
Italy---- 51.7| 75.1. 80. 1, 10.7| 10.3| 10.5 100 9| 245.8. 211.2 14.3| 23. 6 18.2
Japan 91. 4. 413.0) 383. 4. 29.2| 43. 6 41.9| 60. 6. 272.9| 290.3| 16.8. 25.8. 28.5
Malaya, 27. 4 361.1| 198.9| 13.7| 49.9| 42.0 3.9| 22 4 15. 5| 1.8| 4.0 3.2
Mexico.------ 3 113.5 255. 32 196.2 377. 2 75.7|2 66.3|847. 6 135.62 109.9| 350.6 70.2] 2 67.2
New Zealand 4.4 20.7 20.7| 4.0. 7.9| 7, 6, 10.3| 42.9| 39.9| 9.5| 16.9| 18.3
Netherlands---------------|------ 28.6| 27.7|------ 3.9 3.5|------ 110.9| 106.8|------ 11.2 9.9
Netherland East Indies---| 5.4| 101.0|º 86, 7, 2.2 14, 1] 2 13.3| 3. 6 2.1.4, 2 37.0. 2, 1| 6.5 ± 10.6
Norway------------------- - 17. 5| 7.7| 10.7. 9. 6 10.5| 34.8; 32.5| 7.1| 14, 1| 11.8
Peru--------------- 35.4| 33 2. 34.8| 28, 3| 8.4| 28.4 .0 28.8l 38,7| 40.0
Philippine Islands- 115. 6. 34.7| 73.5 74.5 27.3| 70.2 83.9| 51.2 58.6 62.3
oland------------- - 1.8 2. 1.------ .. 7 .8------ 40.3, 52.4|-----> 13.8 13.9
Sweden.------------------- - - 44, 5, 4.2| 10. 5| 10. 5. 20.5| 58.9, 67.5| 9.0 15.2| 14.7
Switzerland--------------- 37.7| 9.9| 9.4| 9.2 22.8 43.9 47.1, 6.3| 9. 1 9.2
Union of South Africa - - 7.7 .8| 2.7| 2.2 17.9| 45.5 62.3| 9.5|| 14.9| 17.0
United Kingdom - 226.9| 5.6 6.7 6.4| 689. 4,1,184. 4. 918. 1| 18.4| 18.6|| 15.8
Venezuela------ 32, 6, 28.7| 16.5| 27.8 (3.8 31. 5, 46. 1 38.5, 53.8 57.4
1 Data are for 1926.

* Year ended June 30,
* Includes reexports; data for other years are domestic exports.
7
United States Share in World Trade.

The share of the United States in both world exports and world
imports is at present substantially larger than in 1913, although the
ratios have declined slightly in recent years. In Volume II of the
1929 Commerce Yearbook, pages 768–771, the foreign trade statistics
of 102 countries are combined, the total representing at least 95 per
cent of world trade. For 1913 the United States exports were 12.3
per cent of the total for all countries; in 1921–1925 the ratio was 16.5
per cent, and in 1928, 15.6 per cent. Our percentage of world im
ports rose from 8.3 in 1913 to 12.5 in 1921–1925 and was 11.7 in 1928.
Table 6 indicates the relative gain of the United States in the
foreign trade of 32 leading countries as compared with the last
pre-war year. In general the countries of South America, Asia, and
Chart III.-CHANGES IN PRODUCTION AND EXPORTS
Bi LLIONS OF DOLLARS
2O 25 3O 4O 45
1899
i eo9 ØPRobuction
- ExPORTs
19. 14
19 - 9 /
1923
1925
I e 27 Z. ///.
PER CENT OF PRODUCTION ExPORTED

O 5 |O 15
1899
19 oe
| 9 || 4
19 9
1923
1925
I eat
- *> → -
Africa, as well as Canada, are continuing year by year to purchase a

larger proportion of their imports from the United States, and
although our share of the purchases of many European countries
has decreased since 1925, in most cases it is higher than in 1913.
For a majority of the countries listed, the share of their exports
taken by the United States was smaller in 1928 than in 1925; however,
as compared with 1913 the ratios for most countries show an increase;
indeed many of them have increased more in exports to the United
States than in imports from this country. This corresponds with
the fact that our imports have shown a greater growth since the
pre-war period than our exports.
RELATION OF EXPORTS TO PRODUCTION
The United States is self-contained to an exceptional degree

and meets a smaller proportion of its consumption requirements by
imports than most other countries, notwithstanding the fact that its
102664—20—2
8
high standards of living enable it to afford large quantities of exotic

products of a luxury or semiluxury character. Consequently, the
country needs to export only relatively moderate quantities of
merchandise to pay for its imports. Such countries as the United
Kingdom, Belgium, Netherlands, and Germany are much less able to
supply their needs directly from domestic production, and conse
quently are obliged to export a large proportion of what they produce
to pay for imports, especially raw materials and foodstuffs. Similarly
countries such as Canada, Australia, and Argentina which are less
developed industrially export a large proportion of their agricultural
products to pay for imported manufactures. Although the per capita
income of the people is much higher in the United States than in
almost any other country, a good many countries surpass it in value of
exports per capita. (See Commerce Yearbook, 1929, Vol. II, p. 773.)
Many products of economic activity are not capable of transporta
tion or exportation; this is true, for example, of construction and of
services which are not incorporated into tangible goods. Table 7
shows the approximate value of the movable commodities produced
in the United States, and the proportion thereof exported, which is
normally about one-tenth of the total.
Table 7.-Production of Exportable Goods and Proportion Exported
NotE,-Agricultural production excludes duplications and seeds. Value added to materials by manu
facture is used to represent manufacturing. Value of mine products in 1909 and 1919 are census figures
while estimates for other years are based on data of the Bureau of Mines. As the figures are not adjusted
for price changes the increase or decrease in absolute values from period to period should be disregarded.
[Millions of dollars)
| | i
- Exports
Aśl Manu. Freight ºś Per cent
Year tural
products factures | Mining receipts |
(railroad)
Total States
merchan-
of total
a
dise
I -
600 1981 9,767 1,253 12.8

| 850 | 1 1,415 | 12,821 | 1,426 11. 1
| !,33;
1,450 ,§
12,082 .94%
21,372 1,79;
2,071 9.4
9.7
§§
2,900 | };
4,004 || ##|
35,499 ||
4,379 15.
12.37
4, 300 4,712 47, 240 4,091 8.7
4, 100 || 4,648 || 48,553 , 4,819 9.9
4,000 || 4,729 49,314 4,750 9.7
|
1 Mean of preceding and following fiscal year. * Approximate. -
Notwithstanding the rapid increase in our export trade, the propor

tion of the national output of movable commodities exported is less
than at the beginning of the century and about the same as immedi
ately before the World War. This results from the fact that the
United States has been able to increase its domestic production very
rapidly and has not been compelled to obtain an increasing proportion
of its consumption from foreign countries. Moreover, the war tempo
rarily checked the growth of production in many countries and conse
quently checked the growth of their ability to
while the domestic market was much less affected.
American exports, .
The fact that the proportion of the total volume of exportable
goods, which is actually exported is smaller at present than in 1899
is owing to a decline in the proportion of agricultural products
9
exported, the exports of manufactured goods (other than foodstuffs

manufactures which are primarily products of agriculture) showing
a slightly higher ratio to production than at the beginning of the
century. At the turn of the century the value of agricultural ex
ports (part of which is attributable not to the farm itself but to
manufacture, and to transportation) was equal to approximately
one-fourth of the farm value of agricultural products. The corre
sponding proportion in the last few years has been about one-seventh.
There was an absolute decline in the value of exports of farm products
during about 15 years preceding the World War. Such exports,
however, were greatly stimulated by the war, and for a number of
years after its close their ratio to the total farm output remained
somewhat higher than before its outbreak, but that ratio has recently
fallen materially.
Table 8.-Export of Manufactured Goods in Relation to Total Production
NotE.-Amounts in millions of dollars. The value of materials excluding duplication is necessarily
an approximation and hence is expressed as a maximum and minimum. As the figures are not adjusted
for price changes the absolute increase or decrease from period to period should be disregarded.
Value of product Exports

States of United
merchandise
Year ------ - ------------

: - -- - - - - - --- -
H---
Value | i
Materials, ex
cluding du- allºy Tºº! Amount | Per cent
plication facture |
i
- - - | - -
— — —-------
All manufactures:
1899–- 2,300- 2,800 4,831 7, 100–7, 600 745 9.8–10.5
3 6, 204 9, 400–10,000 863 8. 6- 9.2
5 8,529 12,800–13,700 1,001 || 7.3–7.8
6 9,675 15,000–16, 200 1, 505 9.3–10. 0
y 24, 748 37,250–39, 250 5, 449 || 13, 9–14.6
• 18, 327 26, 300–27, 700 2,722 || 9.8—10.3
25, 846 37, 350–39,050 2, 625 6.7–7.0
26,771 38,700–40, 400 3,079 || 7, 6– 8.0
27, 585 39, 300–41,000 3, 145 7.7-8.0
415 1,700–1,900 312 16, 4–18.4
540 2, 250–2, 550 296 || 11.6—13.2
750 2,950–3, 450 281 8.1– 9.5
1,036 3,750–4, 350 374 8, 6–10. 0
2, 434 9,500–10,700 1, 963 | 18.3—20.7
2,084 | 6, 200– 6,000 685 0.9–11.0
2,460 7, 200-7, 950 583 || 7. 3- 8.1
2,663 7,950- 8,750 574 || 6.6-7. 2
2,885 8,400-9,200 463 || 5.0–5.5
1,000- 1,300 4,416 5,400– 5,700 433 || 7.6–8.0

1,400–1, 700 5,754 7, 150–7, 450 567 || 7.6-7. 9
2, 100–2,500 7,779 9,850–10, 250 720 7.0–7.3
2, 600–3,200 8, 639 11, 250–11, 850 1, 131 9 5–10.1
5,400– 6, 200 22,314 27,750–28, 550 3, 486 || 12. 2–12.6
3,900–4, 600 16, 233 20, 100–20,800 2,037 9.8–10. 1
6,750–7, 700 23,386 30, 150–31, 100 2,042 6.6— 6.8
6,600-7,500 24, 108 30,750–31,650 2,505 || 7.9-8. 1
6, 250–7, 150 24,700 30,000–31,800 2,682 8.4–8.7
Production and Exports of Manufactures.

Table 8 shows approximately the proportion of American manu
factured products which enters into export trade. The tendency
with respect to both domestic production and exports is different for
foodstuffs manufactures than for other factory products, the former
being subject to substantially the same influences as crude agricul
tural products.
10
The figures in Table 8 somewhat exaggerate the growth in the pro

duction of manufactured foodstuffs for the reason that the processes
of transforming certain classes of food products have been increasingly
shifted from the farm and the home to the factory; ...; y
the decline in the proportion of manufactured foodstuffs exported is

exaggerated. The table brings out sharply the great upswing in
exports of manufactured foodstuffs resulting from the war and the
subsequent resumption of the downward tendency in their ratio to
domestic production. It is natural that with the steady growth of
population in the United States, and with the rising importance of
Canada, Australia, and Argentina as sources of food supply, there
should be some decrease in the relative importance of American
exports of farm food products, whether crude or manufactured.
Quite different has been the history of the export of manufactured
commodities other than foodstuffs. The value of such exports at the
present time is nearly eight times as great as at the beginning of the
century. Even after eliminating the effect of higher price levels, the
quantitative volume has fully quadrupled. The expansion in the
domestic market for manufactured products, has, however, broadly
speaking, kept pace with that of the foreign market. In 1927, the
latest year for which the value of domestic production of manufactured
goods is available, exports represented only a slightly larger propor
tion of the total than in 1899 and a considerably smaller proportion
than in 1914. It is certain, however, that with the rapid increase in
exports of manufactures since 1927 the ratio to domestic production
has risen appreciably and in 1929 it may have been as high as at the
outbreak of the war, from 9% to 10 per cent.
It should be noted, moreover, that our exports at present comprise
much larger proportion than formerly of highly elaborated goods
involving large employment of labor. For example, in the fiscal year
1913–14 copper, a very simple product, represented 13.8 per cent of
our total exportation of manufactured goods (including semimanu
factures), while the corresponding proportion had fallen to 5.6 per
cent in 1929. On the other hand, the group of machinery and vehicles
highly elaborated products, which represented 20.8 per cent of total
exports of manufactured articles in the pre-war year, accounted for
36.8 per cent in 1929. It is true that highly elaborated articles also
make up a larger proportion of domestic consumption of manufac
tured goods than before the war, but the change has probably been
less marked than in exports. Consequently, export trade may be
said to represent a more important factor in the business of our
manufacturers at present than it did 15 or 20 years ago.
The most conspicuous fact brought out by Table 8, apart from the
abnormal expansion of the proportion of exports during the war, is
the decided advance in the ratio of exports to domestic production of
finished manufactures during the years since 1923.
11
Table 9.-Ratio of Exports to Production of Important Agricultural and Crude

Mineral Products
Note.—For meats, milk, and mineral products, production and exports are both ſor calendar years; for
cotton, years ended July 31; and for other crops, production represents the preceding calendar year and
exports the year ended June 30.
Exports of
Production |Unitcd States Per cent exported
merchandise
Item --- - ----- ------- - -
1914 1923 1929 1014 || 1923 || 1929 1914 | 1919 1923 1929
Meat products 1--------million lbs - 14,956 20,695 2 19, 54 956; 2,08021, 161 6.4|| 13. 6 10. 1 2 5.9
Beef and weal------------- do---- 6,049| 7, 735 26, 80ſ, 93 42|| 2 24' 1. 3.8 .5| 2.3
712 57.1 2 671 5 3| ? 2) . 7] .7 .5| 2.3
6, 530 9, 59. 29,387 393 960 ° 334; 6. (..] 24.0 10.0|23.6
Lard 1, 657 2,783 22, 59: 465. 1,075|| 3 801, 28. 1 38.7| 38.0230.9
Milk, condensed, evaported, etc. :
* ----- ----million lbs-- 894 1,914 2 1,912 23 107|| 2 120 2. ( 38. s 10.3] 2 6.3
Wheat-- 763 868 91; 14|| 222 164| 19, 1| 31, 2, 25.6 17.9
Oats--- ---do---- 1, 12% 1, 216 1, 43% 3 25 1. .. 7. 1 2. 1 1. 1
Rye--- -do---- 41 103 4: 2 52 4 5. 40. 1, 50.0 20.9
Corn-------------------------do----| 2,447 2,900 2,81. i 11 97 42: .. 4 6. 3.3| 1.5
Tobacco, leaf---------- -million lbs-- 954 1,247 1, 37; 450 454|| 5ſ;"| 47.2, 43.7; 36.4|41.2
Cotton-------1,000 bales (500 lbs.)--| 14,795. 10,370 15,760. 9, 25t 5,049| 8, 637 02. 45. 1. 48.7| 54.8
Coal, anthracite----1,000 short tons-- 00, 822| 93,339 76,64( 4, 200 5,000 3, 40(; 4.7 5.6, 5.5; 4.4
Coal, bituminous-------------do----| 422,704 564, 565 b2a, 358|15, 45° 21,454|17,424, 3.7| 4.3; 3.8 3.3
Petroleum, crude------1,000 bbls.3-- 265,763 732,407 1,005, 598 || 2,970|17,031|26, 394| 1.1| 1.6 2.3| 2.6
1 Production includes small quantity of goat meat not given separatcly.

* Data for 1928.
* Barrels of 42 gallons.
Production and Exports of Individual Commodities.

Wide differences appear among individual commodities, both crude
and elaborated, as regards the proportion of the output which enters
into export trade: These differences are partly due to the fact that
some commodities are more difficult and costly to transport than
others. Moreover, the country naturally exports those commodities
which the character of its natural resources and the special aptitudes
of its producers enable it to produce most efficiently.
Table 9 shows the proportion exported of some of the leading
agricultural and crude mineral products of the United States. Leading
farm products of which the exportation is relatively unimportant as
compared with domestic production include potatoes, hay, and dairy
products other than condensed milk. The ores of the various metals
form the basis for large exports of manufactured metal products but
are not commonly sent abroad in the crude state.
Cotton is not only our greatest single export, but the proportion
of the output shipped abroad is higher than for almost any other
commodity. While the average quantity sent overseas during recent
ears is greater than a quarter century ago, the proportion exported
is considerably lower. The share of the tobacco crop exported is
also very large; it is not adequately shown by the statistics in the
table for the reason that the production is given on the basis of the
green weight and the exports on the basis of the dry weight after
considerable shrinkage. A somewhat smaller proportion of the crop
is sent abroad at present than before the war.
Exports of wheat showed a considerable decrease during 1928–29,
the proportion of the crop exported being only 18 per cent; this ratio
is slightly lower than immediately before the World War and con
siderably smaller than in the years following the war. There was
also a sharp decline in exports of rye during 1928–29, the ratio to
12
domestic production falling to 21 per cent. Among the animal

products the most important export is lard, of which roughly one
third is sent abroad. This is the only packing house product of which
the proportion exported during recent years has been higher than
before the World War. Foreign sales of pork, the leading meat
export, which for several years before had been diminishing in pro
portion, to domestic production, increased markedly in value during
1929; however, the ratio to domestic production continues smaller
than prior to the World War.
Though exports of coal are large in absolute volume, they represent
only a small part of the total output. The exports of crude oil fur
nish no adequate indication of the importance of petroleum in our
trade, as the bulk of the foreign sales is of finished products.
Table 10,—Ratio of Exports to Production of Important Manufactured Products
NotE.—All data except as noted are for calendar years. Production figures for 1929 are partly estimated
Production Exports
States of United
merchandise Per cent exported
Item - - --
1914 1923 1929 || 1914 | 1923 || 1929 || 1914 || 1919 || 1923 |1929
Leather boots and shoes----1,000 prs--| 292, 666 351, 114|| 361, 404|10, 180 7,697 4,807 3.5 6.5 2.2 1.3
Rubber boots and shoes-------do----| 61,236 95, 315|| 104,682] 1,939 5,270) 17, 574 3.2. 6.3 5.5, 17.2
Automobile tires (casings)
------------------------thousands--| 8,021. 45,426 72,300|------| 1,363. 2,796 3.0) 3.9
------------------millions--| 16,870) 66,734? 105,927 2,407|12,253| 11,706. 14.3 30.5 18.4111.1
1,000 bbls. (500 lbs.)--| 2, 156] 1,652 - 2,072 1,354 1,040 2 1,155 62.8 39.9| 63.0.255.7
-1,000 galls--| 32,800 24, 253 2 31, 54918,901. 9,012| 14,332, 57.6 43.2 37.2145.4
----1,000 lbs--| 515,039; 635,632|| 670,914------ 12,081;1 28,541 3, 3| 1.9; 14.3
,000 doz. pre--| 75, 164| 97,433| 97,900|------ 6, 714, 5, 777|----- 11.2. 6.9, 5.9
Lumber- million bol. ſt.--| 37,346. 37,166. 1 34, 529| 2, 103, 2,368] 1 2,950 5.6 4.3| 6.4|l 8.5
Gasoline and naptha----1,000 bbls.4--| 34,763. 179,903. 434, 241 4,993|20, 136 60,007 17.6 9.4| 11.2 13.8
Kerosene---------- do. 46,078 55,927. 57, 15424,058.20, 189| 19,820 52.2 41.8 36.1] 34.7
Gas and fuel oil- - ,907 287,481| 447,894|15, 10229, 252 35,715, 17.0. 17.7 10.2 8.0
Lubricating oil--------------- - 12,329| 26, 128 34, 359 4, 563 8, 296 10,653. 37.1 31.3| 31.8 31.0
Iron and steel:
Plates and sheets------ 1,000 tons. 4,719 9,498 11,006. 280, 386 : 523 5.9| 14.1| 4.1 × 4.8
Skelp iron or steel---------do----, 1,982. 3,734 2 3,369|------ | 19% 13?-----|----> 2.8 ° 3.9
Tin plate, termeplate, etc.--do----
Structural shapes----------do----|
931
2,031|
1, j
? 1,764
3,405. 2 4,096]
60. 124
182; 199|
249 6.4 17.8 8.2°14.1
2 297 9.0 13.8 5.8. 27.3
Rails---------------------- do---- 1,945 2,905 22,647 175. 267 ? 191| 9.0, 29.6 9.2 : 7.2
Wrought pipe and boiler tubes
1,000 tons--,
-------------------- 1,738. 3,351 22,924|------| 194| 2 256-----| 9.9 5.8 x 8.8
Copper------------- 1,000 short tons-- 767 990) 1,386 420, 412 499 54.8 28.6|| 41.9 36.0
Machinery:
Locomotives (steam)---number--|-------- 3,598. 1 1,054; 269| 266 1228|----- 28.1| 7.4|121.6
Sewing machines, cases, and at
tachments.--------- 1,000 dolls--| 27, 238 42,993 l 42,417 8,659,10,905|l 10,679. 31.8 22.0. 25.4|125.2
Cash registers and parts---do----| 15,935 44, 382 1 40, 183| 3, 200 3, 579| 16,794 20. 1, 13.9 8. 1116.9
Typewriters and parts-----do----| 20, 517| 39, 521. 151,942 7,573|14, 3621 20,856 36.9 40.2 36.3140.2
Printing machinery--------do----| 19, 228, 68,630, 1 63,240, 3,458. 8,4931 15,246| 18.0 14. 6 12, 4, 24.1
Agriculture *--------------- do----|-------- 364,854?522,656|24, 733/50, 3733116,651|-----|----- 13. 9222. 3
Automobiles (passenger cars and |
trucks)-----------------thousands-- 573. 3,890. 5,358 20|| 152 536|| 4.5 4.4| 3,9| 10.0
Motor cycles------------------ do---- 62 42. 1 35 7 22 1 19| 10.5 41.4 52.8|154.3
Pianos------------------------- ã...] § 3is 2ń ś is is ‘īš ‘ī; Eäää
3 Production figures are for years ended Mar. 31; exports, for years ended June 30.
* Barrels of 42 gallons.
* Production figures are “Farm equipment.”
The ratio of exports to production of various manufactured and

semimanufactured articles is shown in Table 10. Among the semi
manufactures copper and naval stores have an exceptionally large
foreign demand, although the share of the output exported is less than
before the World War. Lumber is another important semimanufac
tured export but its foreign sales represent a relatively small though
increasing proportion of total production.
13
Among the finished manufactures the foreign demand is in general

largest for highly elaborated articles produced by mass methods.
In the case of most such articles, however, the high standards of living
in the United States create a market greater than that of all the rest
of the world combined, although in a few instances exports constitute
a large proportion of the output. We export over one-half of our
annual output of motor cycles, two-fifths of typewriters, one-fourth
of sewing machines and printing machinery, and about one-fifth of
agricultural machinery and steam locomotives. Of cash registers and
automobiles the proportions exported are about one-sixth and one
tenth, respectively. The ratio of exports to domestic production of
automobiles, which is based on the number of passenger cars and
trucks, declined in 1929 as compared with 1928. However, the export
figures do not include the number of cars shipped in the form of
parts for assembly abroad, the quantity for which is not shown in our
export statistics; and if these could be included the ratio for 1929
would be considerably higher. Exports of parts for assembly in 1929
were valued at $107,700,000, an increase of 72 per cent over 1928.
Exports constitute a considerable fraction of the output of refined
mineral oils; the proportion is largest in the case of kerosene, although
foreign markets are taking a smaller part of the output of that com
modity in recent years than formerly. Exports of lubricating oil,
gasoline and naphtha, and gas and fuel oil have increased greatly but,
nevertheless, constitute a smaller fraction of the total output at present
than before the World War. The proportion of most of the major
iron and steel products sent abroad is also smaller than before the war,
tin plate being a conspicuous exception. Cigarette exports, which in
1919 amounted to three-tenths of our total production, have been
declining in absolute volume and still more in the ratio to domestic
production; in 1928, however, there was an increase in exports, the
ratio rising to 11 per cent of the total.
QUANTITY AND PRICE CHANGES
Changes in the value of trade may be caused by variations in

quantity, by fluctuations of price, or by a combination of these two
factors. The most satisfactory method of estimating the effect of
these factors is by the computation of price indexes which are weighted
by the quantities of the commodities entering the trade. Changes in
the quantitative volume of trade are then obtained by adjusting the
total value figures by these price indexes. Table 11 and Chart IV
show indexes computed in this manner. The results can not be con
sidered rigidly accurate but reflect fairly well the true movement.
The recently revised index of wholesale price, constructed by the
Bureau of Labor Statistics, is also included in Table 11 for com
arison. All the indexes are shown on both a pre-war and a post-war
8-Se.
Export prices as a result of war inflation reached in 1920 a peak

almost two and one-half times as high as in 1913. There was a drastic
decline in the two succeeding years, followed by a moderate recovery
in 1923. After three years of fairly stable prices another decline set
in which continued through 1927. This, in turn, was followed by
another period of relative stability which continued until the latter
part of 1929.
14,
Chart IV.-CHANGES IN WALUE AND QUANTITY OF FOREIGN TRADE
ØExPorts E ºr | N/iPORTS
BILLIONS OF DOLLARs QUANTITATIVE INDEx (1923–25 = I

2 4. 2O 4O 6O 8O
Table 11.-Indexes of Changes in Quantity, Price, and Value of General Imports

and Exports of United States Merchandise
NotE-The method is as follows: The percentage change in prices (i. e., average unit values) from each
year to the next is computed for each commodity for which comparable data are available; these percentages
are combined into an ayerage, weighted by the mean values for the years compared. The change in quan
tity is obtained by dividing the percentage change in total value of all commodities by the average change
in price. These year-to-year percentages are linked into a chain related to a base period. Special adjust
ments are made for cotton, wheat, and other commodities which fluctuate greatly in quantity and price.
Espor;§§states General imports Domestic

Year wholesale
price
Quantity Price Value | Quantity Price | value | *
100 100 100 100 100 100 100

123 144 176 151 126 192 142
142 223 317 125 174 218 199

137 241 330 139 213 294 221
120 150 179 120 117 140 140

112 138 154 154 113 174 139
115 146 167 161 132 212 144
130 143 184 156 129 201 141
137 144 197 166 142 236 148
146 133 192 178 139 247 143

158 124 194 180 130 233 137
165 125 206 181 126 228 140
169 125 211 207 119 245 138
79 69 55 62 75 46 69
96 100 96 94 94 89 99
112 155 173 78 130 101 138

108 167 181 86 158 136 153
94 104 98 75 87 65 97
88 95 84 96 84 96.
101 92 100 98 98 100
102 99 101 97 96 93 97
108 100 108 103 106 109 103
115 92 105 110 104 114 99
124 86 107 112 96 108 95
130 86 113 113 94 106
133 87 115 129 88 114 96.
15
The quantity as well as the average price of exports declined

sharply in 1921 and 1922, but since 1922 the quantitative volume has
increased 51 per cent, as a result of the expansion in our exports of
finished manufactures. The gains in the value of many individual
finished articles are shown in Table 17, and the increases in the
quantities of some of these items have been even more striking.
Import prices in general have had a similar trend to that shown
by exports, although the magnitude of the changes has differed some
what. The recovery from the postwar deflation in 1922 was much
greater and extended over a longer period than in the case of exports.
As a result the index of import prices, which had shown a smaller
increase during the war than that of exports, in 1925 returned to
approximately its pre-war relationship. As compared with 1925 the
import index in 1929 showed a more drastic decline than that for
exports. Since 1925 or 1926 there has been a particularly sharp
drop in the average unit values of raw silk, unmanufactured wool,
crude rubber, and tin, and a more moderate decline in the prices of
many other articles.
. The total quantity of imports reached a new high level in 1929,
and according to the index in Table 11 was more than 72 per cent
greater than in 1921. During this period, imports of newsprint,
crude rubber, and tin more than trebled in quantity; and the increase
for copper was nearly as large. Silk imports also showed a substan
tial growth, being about 90 per cent larger than eight years earlier.
In 1929 there were 41 leading commodities which were imported in
larger quantities than in any earlier year. (See Table 13.)
Table 12.-Commodities Exported in Record Quantity and Value in 1929
[Values in thousands of dollars]
1929 Previous record Previous record

| quantity value
Article
i
Quantity | Value i Year || Amount ||Year || Amount
I
Records in both quantity and value
9,419 1928 80, 253 1927 6,818

18, 746 1927 3,562 1927 15, 132
33, 138 1926 5,390 1926 30,474
- g 20, 748 1928 768,076 1920 17,641
Petroleum, crude--------------- 37,800 1928 18,961 | 1920 28,990
Gasoline, naphtha, and other light pr 266,904 1928 51, 752 1926 263,200
Sulphur or brimstone------------------------tons--| 855, 542 17,649 1927 | 789, 274 1927 16, 254
Iron and steel scrap (including tin-plate scrap) do---| 557,070 7,753 || 1928 || 516, 148 1928 6, 615
Copper rods----------------------------- 1,000 lbs--| 81,088 14, 585 | 1928 71, 325 1928 11,066
Batteries--- :--------------------------- thousand--| 61,273 9,684 1928 42,749 | 1928 9,092
Excavators, including power shovels----- number-- 648 7, 296 || 1928 489 || 1928 5,655
Air compressors----------------------- ----do----| 19,431 7, 589 1928 16,951 | 1928 6, 738
Typesetting machines--
Horse and power plows-------
Combines (reaper-threshers)-- --do----| 10,887 15, 536 || 1928 7, 317 | 1928 10,449
Track-laying tractors------------- --do---- 5, 802 11, 275 | 1928 3, 169 || 1928 , 04
Motor trucks and busses, except el ----do----| 196, 758 111,435 | 1928 138,768 || 1928 91, 361
--1,000 gals--| 33,346 y 1927 25,794 | 1927 6,665
-----1,000 lbs--| 95,030 8,456 || 1928 81,654 || 1928 7,013
----1,000 gals--| 3,720 7,391 || 1928 3,339 |, 1928 6,889
number--| 282, 144 7,860 | 1928 23. 310 || 1928 7, 198.
102664—30—3
16
Table 12.-Commodities Exported in Record Quantity and Value in 1929–Con.
1929 Previous record Previous record

Quantity Value
Article ---
quantity Value | Year || Amount | Year || Amount
Records in quantity only
|
Lubricating greases---------------------- 116,692 6, 111 1928 108, 112 || 1920 7,372
Tinplate, terneplate, and taggers' tin- d 580,081 28,566 | 1918 579,125 | 1918 55,850
Typewriters------------------------------ 425, 243 22,844 1928 || 390,539 1920 25,042
Motion picture films, exposed.--------- 282,215 7,622 1925 || 235, 586 || 1925 8,681
Records in value only
Muskrat fur, undressed.--------------- 1,000 pieces-- 5,088 5,446 1924 5, 290 1928 5,438
Ilinseed cake----------------------------- 1,000 lbs-- 711,684 1% º -;-|---------- 1925 14, 238
Accounting and calculating machines-----number-- 71,113 14, 120 1928 73,797 | 1928 13, 878
Cash registers---------------------- ---do---- i 9, 525 1913 56,776 1928 7,475
Wheel tractors - 54, 353 49, 108 1927 56, 562 | 1928 44, 360
Airplanes, seaplanes, and other aircraf do---- 347 5,485 1915 397 || 1915 2,960
|
Records in value (quantity data not available)
Bricks and tiles 5, 716 - - 1920 ! 5,608

Metal furniture and fixtur 8,788 - 1928 8,
Radio apparatus----- 23, 122 |- 1928 12,061
Telephone apparatus 6, 568 |- 1926 5, 124
Oil-well machinery-- - 23,903 |- 1927 16, 842
Refrigerating equipment------------------------------ - 14,080 - 1928 8,712
Parts of garden and farm tractors-------------------|----- 13, 165 |- 1928 9,612
Automobile parts and accessories, except engines---|----- - 183, 108 |- 1928 132,036
Automobile service appliances----------------------|----- - 7, 530 - 1928 7,366
Medicinal and pharmaceutical preparations--- ---| 21, 282 |- 1920 21,215
Books and pamphlets------------------------------ ---------- 13,607 ||------ 1927 11,912
Export and Import Records in 1929.

The number and character of the commodities which attain maxi
mum levels in both export and import trade during any one year
is a significant indicator of the direction of the growth of foreign
trade. During 1929 many new high records were established; and the
character of the commodities which made these records indicates a
wide diffusion of foreign trade activity. - - -
A special compilation has been made of those articles in foreign

trade, the value of which amounted to more than $1,000,000 during
1929. Of 416 such export commodities, 130 reached maximum levels
as to either quantity or value, 65 establishing new high records in
both respects, 24 showing larger quantities than in any other year
but not higher values, and 41 showing higher values but not higher
quantities (the quantities for 28 of these 41 are not available). Table
12 presents the quantity and value of export commodities valued at
more than $5,000,000 in 1929, and also the amount and year of their
previous maximum levels. Records were made last year for such
diverse products as sardines, oranges, apples, lumber. (fir), sulphur,
gasoline, machinery, automotive products, and medicinal prepara
tions; a large proportion of these commodities consisted of finished
manufactures, including different types of machinery, automobile
parts and accessories, motor trucks and busses, and gasoline.
17
Table 13—Commodities Imported in Record Quantity and Value in 1929

[Values in thousands of dollars)
Previous record Previousrecord

1929 quantity value
Article Quantity Value | Year || Amount l Year || Amount
Records in both quantity and value
Fresh water fish and eels ---1,000 pounds-- 57, 102 5,691 1928 53,349 1928 5,302
Sardines --- —do 31, 245 5,521 | 1928 29, 320 | 1927 5,235
Calf and kip upper leather------------- 000 39,810 12,848 1927 32,096 || 1927 9,967
Goat and kid upper leather includin 14,718 6, 507 1928 9, 201 || 1928 4, 326
Boots and shoes, leather 6, 183 17,026 || 1928 2,617 | 1928 8,254
Gloves, leather--------- 17,389 16,551 | 1928 11,505 || 1920 || 14, 187
Oilcake and oilcake meal 334, 172 6,715 1928 250, 786 1928 4,695
Tomatoes, canned 174,787 9,005 || 1927 6, 242 1927 5,306
Bananas 65, 134 36,048 1928 64, 308 || 1928 35,381
175,342 6, 226 1928 140,499 || 1928 4,878
119,678 14,972 1928 109,222 | 1928 13,419
261,816 17,500 | 1928 || 109,228 1928 11,067
7,606 || 14,351 | 1927 32,499 || 1927 9,055
3,340 21, 509 || 1926 3, 292 1927 21, 503
87,068 427, 126 1928 75,489 | 1925 || 396,286
334,235 25,339 1927 | 311, 130 1927 -
-|4,845,401 144,493 1928 4,314,333 1928 139,433

8,834 43,335 | 1926 5, 540 || 1928 31, 516
Asbestos, unmanufactured-- 234, 300 11, 153 1926 230,019 || 1920 9, 120
Copper, unrefined-------- -1,000 poundS.-- 646, 167 104,306 | 1928 543, 190 1917 96, 109
Colors, dyes, stains, etc.----------------------do---- 7, 593 8,448 1928 6, 252 1925 7, 166
Calcium cyanimide or lime nitrogen.----------tons-- 184,260 | 6,221 | 1928 || 135,727 | 1925 4,689
Records in quantity only
Sausage casings---------------------- 1,000 pounds-- 23, 106 | 15,420 | 1927 | 20,755 1925 10,000
Bran shorts, etc.------------------------------ tons-- 272,864 7,399 || 1928 272,644 || 1928 8,018 |
Olive oil, edible------- -1,000 pounds-- 96,796 16,408 || 1924 90,427 1919 18,014
§: or cacoa beans------------------------ do---- 507, 580 49,493 1926 426,287 1919 57,999
ugar, Cane---------------------------------- 0---- 9,776,778 209,277 | 1922 9,721,620 | 1920 1,008,786
§.”........................ 1,000 galls-- 310,759 15,947 | 1926 269,725 1925 18,
Rubber, crude- ---1,000 pounds-- 1,262,939 240,967 1928 978, 107 1926 505,818
Opra--------------------------------------- do---- 570,931 24, 195 | 1928 501,990 1918 26, 263
Coconut oil--------------------------- -do---- 411,936 29,552 | 1918 || 356,089 || 1918 44, 290
Burlaps------------------------------- -do---- 643,645 77,377 | 1925 625,816 || 1920 89,359
Carpet wool---------------------- -do---- 175,007 46,988 || 1922 || 173,036 1925 7, 232
Sulphite wood pulp, unbleached.-- -tonS.-- 701,456 35,329 1928 640,660 1920 | 37, 510
Sulphate wood pulp, unbleached.------------ do---- 384,005 20, 519 || 1928 || 381,256 1926 21, 193
Topped oils, including fuel----- - 1,000 barrels-- Žiš | 1.5iš ij ii. 1; iº | 1.
Diamonds, rough, uncut------------------- Carat.S.-- 354,415 9,885 | 1928 291,302 1919 20,316
Iron ore-------------------------------- 1,000 tonS.-- 3, 139 8, 145 || 1923 2,768 || 1923 11,309
#.ars,ores,
in
concentrates and matte-1,000 pounds--
blocks, pigs------------------------ do----
180,452
195, 165
23,558 || 1917 | 175,747 | 1917
91,839 1928
34,651
174,654 1926 || 104,793
Sensitized films, not exposed.---------- 1,000 lin. ft--. 358,911 5, 195 | 1926 291, 683 1922 | 6,024
Records in value only
Crab meat-------------------------- 1,000 pounds-- 10, 937 5, 112 || 1928 12,775 : 1928 5,042
Furs dressed on the skin, not advanced beyond |
dyeing------------------------------1,000 pieces--, 6,854 11,984 1925 7,404 1928 7, 131
sºi shapes and building forms.1,000 pounds-- 332,019
134,015
5,657 | 1928
23,757 | 1926
366,826
170,566 |
1927 5, 532
23,336
Copper, refined do---- 1926
|
I
Records in value (quantity data not available)
º damask and Hºnº-------------------- ---------- .7.11% ----------| 1927 6,977

001 Wearing appar 19,975 ------|---------- 1928 18,415
§. #º. reed, wood, etc.
*------------
5, 576
19,419
------|----------
|------|----------
1928
1928
5,270
14,363
Textile machinery. -
8,453 |------|---------- 1923 6,641
Wutomobiles ºther vehicles, except agricultural ------ 5, 151 ----------| 1906 4,910
Particularly conspicuous is the number of import articles establish

ing quantity records in 1929. Of a total of 340 items, valued at over
$1,000,000, higher levels than in any earlier year are shown by 45
commodities in both quantity and value, by 34 others in quantity
only, and by 20 in value only (the quantities for 9 of these are not
available). The 51 imports which were valued at over $5,000,000
18
in 1929 are presented in Table 13, and also their previous high levels.
Among those which reached the maximum in 1929 as regards quantity
or value or both appear such crude materials and semimanufactures
as raw silk, crude rubber, carpet wool, vegetable oils, wood pulp,
copper, and tin. Foreign purchases of sugar and cocoa, two of our
leading foodstuffs imports, were larger in quantity than in any earlier
year, but owing to lower prices their values did not record a maximum.
Imports of newsprint showed a new high quantity and value and
burlap a new quantity record only, while leather boots and shoes, hats
of straw or grass, and gasoline were other finished manufactures which
Chart W.-PERCENTAGE DISTRIBUTION OF TRADE BY ECONOMIC CLASSES
ExPORTs PER CENT

(DoNAEstic)
| 9 || O - || 9 || 4 :*:::::----------------------------------------
| 92 || - 1925
| 925 ------------------------------------------------- .*.*.*.*
| 926 2777, Nºx& --------->
| 927 --------------------------------------------------------------
| 928
| 92.9
CRUDE - FINISHED
nviaTERIALs FooDSTUFFs rv FD. NMANUFACTURES
PER CENT
| N/IPORTS |O 3O 4.O 5O
| 9 || O - || 9 || 4
| 92 || – || 925
| 925
| 926
| 927
| 928
| e2e
cRUDE CRUDE sENMI- Finish ED
MATERIALs Foodstuffs mfo, narrºrs. MFRs.
Gºaoo-2)
showed marked growth during the year and reached new records in
quantity and value.
DISTRIBUTION BY CLASSES AND COMMODITIES
Exports and Imports by Economic Classes.

Tables 14 and 15 show the economic classes of exports and imports
since 1876, while similar data for recent periods are shown in Charts V
and VI. The most conspicuous development in export trade has been
the rapid growth in foreign sales of finished manufactures. The value
for this group in 1929 increased 12 per cent over 1928, 62 per cent over
the average for 1921–1925, and nearly 300 per cent as compared with
the average for the period 1910–1914. (See Table 15.) This group
constituted 49 per cent of our total exports last year as against 45
per cent in 1928, 36 per cent in 1921–1925, and 31 per cent in 1910–
1914. Exports of semimanufactures and crude foodstuffs in 1929
19
each showed a gain of more than 100 per cent as compared with the
pre-war period; however, as compared with the average for 1921–1925
crude foodstuffs decreased by approximately one-third, constituting
5.2 per cent of the value of total exports in 1929 as compared with 9.7
per cent in 1921–1925. Manufactured foodstuffs increased 4 per cent
in value over 1928 but remained 20 per cent below the 1921–1925
average. Exports of crude materials decreased 12 per cent in value
during the year and were about 4 per cent smaller than the average
value for 1921–1925. Manufactured foods and crude materials both
formed a considerably smaller share of our exports in 1929 than in
either 1910–1914 or 1921–1925.
Table 14.—Foreign Trade in Merchandise, by Economic Classes

(Data cover period beginning July 1, 1876, and ending I)ec. 31, 1929)
Crude mate | Crude food. Manufactured semimanu- Finished

rials Stuffs foodstuffs factures manufactures
Yearly average of year º ------,
|
P
Per
... per-
--
er ºr
P
Per
per
----
er
P
er
- - --- -- -
Value ce. Value | eit Value | cent Value | eit Value geºt
- - - - -
|
ExpoRTs of UNITED - |
states Merchandise : |
1876-1880--------------- 214 32.2 159 || 23.9 162 24.4 30 4.5 09 14.9
1881–1885---- 262 | 33.8 163 || 21.0 197 25.5 37 4.8 116 14.9
1886-1890---- 277 38.1 109 || 15.0 182 25.0 40 5. 5 119 16.4
1891–1895. 5 : 33.7 151 17.2 239 27.2 55 6.3 136 15. 6
1896-1900--------------- 207 26.1 215 | 18.9 273 24.0 110 9.6 242 21, 3
1901-1905--------------- 432 30.3 174 12.2 316 , 22.2 161 || 11.3 344 24, 1
1905–1910. 555 ; 31.7 156 8.9 317 | 18.1 249 || 14.2 474 27. 1
1911–1915. 717 30.7 200 8.8 334 || 14.3 359 || 15.4 716 30.7
1915–1920.1. 1, 169 18.2 588 9.2 1, 133 17.7 987. 15.4 2, 540 39.6
1921-1925--------------- 4,310 | 1, 187 27.5 420 9.7 601 | 13.9 537 12.5 | 1,566 36. 3
1910–1914 (fiscal)------- 2, 130 713 33.5 127 5.9 295 | 13.8 342 | 16.0 654 30, 7
1913 (calendar)--- 2,448 777 31.7 170 6.9 325 I 13.3 397 | 16.2 780 31.9
22.5 673 || 15.4 685 | 15. 7 410 9.4 1,627 37. 1

26.3 459 || 12.2 588 15.6 438 11.6 1, 292 34.3
29. 5 257 6.3 583 14.3 564 || 13.8 | 1,478 36. 1
| 29.6 393 8.7 573 12.8 611 13.6 | 1,588 35.3
29. 5 3.18 6.6 574 11.9 662 13.7 | 1,843 38. 3
| 26.8 335 7. 1 503 , 10. 7 656 13.9 | 1,057 41. 5

25.1 421 8.8 463 9.7 700 14.7 | 1,982 41.6
! 25.7 295 5.9 466 9.3 716 14.2 2,260 44.9
l 22.2 70 t 5.2 484 | 9.4 729 14.1 || 2,532 49. 1
GENERAL imports |
1876–1880. 493 91 18.5 89 || 18.6 106 21.5 61 | 12.4 145 29.4
1881-1885 667 133 20.0 99 14.9 128 19.1 92 13.7 215 32.2
1886-1890. 717 162 22.6 113 15.8 118 , 16.5 113 15.8 210 29.3
1891-1895. 785 185 || 23.6 147 | 18.7 141 17. 9 113 14.4 200 25.5
1896–1900. 742 219 || 29.5 112 || 15.1 118 15.9 99 13.4 194 26.2
1901–1905... 972 325 || 33.4 126 12.9 120 12.4 162° 16.6 240 24.7
1906–1910.... - 1,345 465 || 34.6 148 11.0 159 11.8 240 17.8 334 24.8
1911-1915--- 1,712 598 || 34.9 219 | 12.8 215 12.6 297 17.4 383 22.4
1915–1920 1-.....III. 3,358 1,348 40.1 408 || 12.2 545 16.2 574 17. 1 484 14.4
1921-1925......I.III.III 3, 450 | 1,290 37.4 383 11.1 448 13.0 609 17.7 | 720 20.6
1919-1914 (fiscal)------- 1,689 || 595 || 35.2 | 203 12.0 | 104 11.5 || 307 18.2 | 389 || 23.1
1913 (calendar).III.IIII 1,793 620 34.6 221 | 123 108 11.1 340 10.0 418 23.1
34. 2 300 | 12. 0 368 14.7 362 14.4 620 24.2
37. 9 330 10.6 387 | 12.4 553 17.8 663 21.3
37. 1 363 || 9.6 530 14.0 721 19.0 771 20.3
34.9 425 - 11.8 522 14.4 656 18.2 749 20.8
41.4 495 11.7 433 I 10, 2 755 17. 9 796 18.8

40.5 540 | 12.2 418 0.4 804. 18. 1 877 19.8
38. 3 505 || 12.1 451 : 10.8 750 17. 9 879 21.0
35.8 550 | 13.4 400 0.9 763 18.6 906 22.2
35.4 539 | 12.3 424 9.6 885 , 20, 1 994 22.6
* Period July 1, 1915, to Dec. 31, 1920.

20
Chart VI.—DISTRIBUTION OF FOREIGN TRADE BY ECONOMIC CLASSES
Exports (Domestic) Z2 Imports m

NMILLIONS OF DOLLARS
5Oo I | 5oo 2Ooo
CRUDE
| 9 || O-19. 14
1921 - 1925
| 927
1928
| 929
CRUDE FOODs.TUFFs
| 9 || O-19. 14
| 92 - 1925
| 927
| 928
1929
NaANUFACTURED
| 9 || O-19. 14
1921 - e25
1927
1928
1929
| 9 | O-19. 14
| 92 - 1925
| 927
1928
1929
| 9 || O-1914
192 || -1925
1927
1928
1929
Table 15.-Percentage Increase or Decrease in Foreign Trade by Economic

Classes
Per cent change in the value | Per cent change in the value
of 1929 exports from— of 1929 imports from—
Class
1910–1914 || 1921-1925 1928 1910–1914 || 1921-1925 1928
Total.-------------------------------- +142. 1 +19.7 +2.5 | +160.5 +27.5 +7.5

Crude materials--------------------------- +00. 2 –3, 8 —11.7 +162.0 +20.8 +6.3
Orude foodstuffs.----------- +113.1 –35.8 –8.5 | +165.0 +40.8 –2.1
Manufactured foodstuffs-- +64. 2 – 19.4 +4.0 | +118.0 -5. 5 +4.4
Semimanufactures--------- +113.4 +35.8 +1.8 +186.8 +44.6 +15.4
Finished manufactures-------------------- +287.0 +61.7 +12.0 | +156.5 +38.7 +10.2
The economic classes of imports have shown less change in the pro
portion to the total than the economic classes of exports, the increases
in their value in 1929 as compared with the average value for the
period 1910–1914 ranging from 118 per cent to 187 per cent. In 1929
crude materials accounted for 35 per cent of the total value of imports,
21
a smaller proportion than for any year since 1924; this decline resulted
from a lower price level for leading commodities in the group. Semi
manufactures constituted 20 per cent of the total and showed the
largest increase in value over 1928 and 1921–1925 of any of the
oups, the gains being 15 per cent and 45 per cent, respectively.
inished manufactures represented 23 per cent of the total value
of imports, which ratio was larger than for any recent year but
approximately the same as for 1913. The value of crude foodstuffs
was slightly less than in 1928, but two-fifths larger than the average
for the period 1921–1925; on the other hand, imports of manufactured
foodstuffs increased in value during 1929 but showed a decline as
compared with 1921–1925, the decrease resulting from a lower average
'unit price of cane sugar. Foodstuffs were 22 per cent of the value of
our total imports in 1929.
Table 16,-Economic Character of the Foreign Trade, by Quarters
1927 1928 | 1929
Class Jan.-Apr-July-loct.-Jan.-Apr-July– Oct.- Jan.-Apr-July-oct.

Mar. |June |Sept. Dec. Mar. June |Sept. Dec. Mar. June |Sept. Dec.
Exports of United
States merchandise-1, 175 1, 186 1, 117 |1,332 |1,174 |. 150 1,158 |1,548 |1,397 |1, 182 1,200 | 1,379
Crude materials------------ 833 224 || 212 || 424 || 299 || 239 || 233 522 299 || 185 213 445
Crude foodstuffs----------- 63 87 138 || 132 46 51 86 || 112 74 53 79 64
Maluſactured foodstuffs---| 117 | 112 || 104 || 130 | 126 96 || 101 143 || 132 || 106 || 114 133
Semimanufactures---------- 172 | 183 | 174 || 171 183 186 168 || 179 196 || 187 || 176 171
Finished manufactures----- 489 || 529 || 489 || 475 || 521 577 569 || 592 || 696 || 651 619 565
General imports------|1,046 |1,077 1,080 1,031 |1,069 1,017 | 984 1,021 |1,122 1,164 (1,074 | 1,040
Crude materials------------ 419 || 426 || 396 || 360 || 410, 374 || 339 || 344 || 418 || 410 ! 367 364
Crude foodstuffs----------- 130 | 120 | 110 || 145 || 149 142 | 126 || 132 || 147 || 140 123 129
Manufactured foodstuffs---| 113 | 128 104 || 106 || 106 108 97 95 110 | 125 | 101 | 88
Semimanufactures--------- 183 || 189 191 187 | 191 177 | 190 205 211 244 221 205
Finished manufactures ----| 201 || 214 229 || 233 214 215 232 245 236 247 262 254
Table 16 presents exports and imports by economic classes, and

Chart VII shows similar monthly data reduced to a daily average
basis. These data indicate that the outstanding changes in exports
as compared with a year earlier were declines in crude materials during
the second and fourth quarters, and declines in crude foodstuffs
during the third and fourth quarters; there were marked increases
in finished manufactures during the first three quarters. In import
trade, increases in 1929 as compared with 1928 were well distributed
as between the economic classes and throughout the four quarters.
Exports by Classes and Commodities.
The expansion in foreign sales of finished manufactures was
especially marked during the first quarter of 1929, showing a gain of
one-third in value over the first quarter of 1928. For the entire year
this group totaled $2,532,000,000—a gain of 12 per cent over 1928
and of 96 per cent over, 1922, only seven years before. (Chart VI
indicates the growth during recent years in exports of finished manu
factures.) Increases, as compared with 1928, were widely distributed
among individual commodities, and new records were established for
many. The value of exports of machinery amounted to $613,000,000–
a gain of 23 per cent over 1928 and about 90 per cent more than
the average for the period, 1921–1925. (See Table 18.) Exports of
automobiles (including parts and accessories) exceeded $539,000,000,
22
notwithstanding the fact that foreign sales during the fourth quarter
fell considerebly below those of a year earlier; their value for the
year was 8 per cent larger than in 1928 and more than three times
greater than the average yearly sales for the period, 1921-1925.
Chart VII, DAILY AWERAGE EXPORTS AND IMPORTS BY CLASSES
MILLIONS OF Doul ARs (pally average) ExPORTS
•F------— r—H+++++ H-H+. H
8 | A
7 | \W DV
s
6
M
i K
Finished Manufactures
A
N/ \W j\\
A
Vº
5
vºn WZVN/\-J
-
i–A
> w- WTV TV
-
'' ;
T
\
M
:
|\
*H \ ... j|
- ! \
|—k | \
i—A
|
} \
j \ !—
wº - \ | N i N. | \ |
*H |–A–.
\– ;
\—i–HA \,\ i|–HA—
-
-
- Semi- \ J -
\ -
| V - | -
\ -
|
, S$3.,-\*…tºº-ºº:
/ wrº/ \-z ==="Tº
s: 'N . . ANSZ
sy-Tºr Y
i , ,---A~SP
- * ve
l
*...* Fºx. AV.V ***"........
~~ *...-- •' ------. I.”
A "*..."---,*....... A tº
..y”
‘....”.
Crude º-U^{ G/TSJ \ \ſ RSJZ-S
and Food Animals
ol—l----|--|--|--|- |- 1 1-1-1–1–1–1–1–1– L-1–1–1–1–1–1– 1–1– |--—
MILLIONS OF DOLLARS (bally averages) H+++++++++++++++++++++-T—

7F------T—H---- IMPORTS T-T—T H
N
o :^
/* \-crude Materials
/
^–.
\\f -
\_A^{\j v\A. y |AVN

/
4H-1
-
*-*NZ W A Y
WTV-
A\ ^^ \ –N
w
*
3. M Semi- Finished Manufactu A
2
anufactures
e=^* zS
-
JºWſº&\
-----~~~~~S--M.--~~ Yzº- ,-2^^T’ z
w v \f w
\
2-- ~-Taº
I *****~rmhº ~- -- *i; *H •.
4. Foodstuffs
and Food Animals
Manufactured Foodstuffs -
o —º--— —###––– —###–H–F#– Hää-H
As compared with 1928 the value of exports of photographic and pro

jection goods increased by 47 per cent, and there were increases
ranging from 5 per cent to 14 per cent in the export values of chemicals,
paints and varnishes, and finished manufactures of iron, and steel,
rubber, and wood. Table 17 presents the value and relative growth
over 1922 and 1928 of many articles included in the groups of finished
manufactures shown in Table 18.
23
Table 17,-Exports of Finished Articles

[Values in thousands of dollars; reexports are not included]
|
Per cent change
1929 from—
Article 1922 1924 1920 1927 1928 1929 |_
1922 1928
Leather footwear-------------------- 12,671 15,412 13, 279 12,900 11, 343 : 11,648 –8.1 +2.7
Rubber tires and accessories - 20, 704 20,822 33, 165 42,618 38, 561 40,765 +96.9 +5.7
Rubber footwear-------- -| 3,740 5,929 7,793 || 7,073 || 9, 250 | 11,891 +217.9 +28.6
Cigarettes----------- - 23,838 || 19,408 17,898 || 13,837 22,059 16,706 —29.9 —24.3
Cotton cloth - 80,870 74,030 69,556 70,216 || 71,885 71,491 –11.6 – .5
Cotton hosiery-- -| 9, 222 || 9,096 || 8,407 || 7,330 6,729 6,442 —30. 1 –4. 1
Silk hosiery - 3,369 6,947 8,995 8, 021 9,657 9,811 +191.2 ––1, 6
Paper and manufactures-- - 22,667 23,066 26,830 26,946 30,933 37,380 +64.9 +20.8
Petroleum products: ! -
Gasoline------------------------ 126,827 |167,347 (263,200 |209,839 (232,298 266,904, -1-110.4 |-|-14.9

Illuminating oil . 88, 619 100, 353 | 79, 303 || 93,466 83,788 +. 8 ' —10.4
Lubricating oil------------------ 86,201 |80,415 || 88,843 91,576 O2,800 +313|4-124
Iron and steel:
Structural iron and steel-------- 9,863 || 13,387 15,336 13,245 17,697 23, 171 +134.9 +30. 9
rails------------- - 10,833 7,950 7,643 j 6,783 6,926 5,332 | —50.8 —23.0
Tubular products- 20, 530 28, 303 || 34,050 29, 821 29, 533 36,625 +78.4 +24:0
Cutlery----------- - 4,616 9, 258 9,406 || 10, 232 12,981 8,989 --94.7 | –30.8
Tools------------- - 11,820 | 15, 998 16, 959 16,481 17, 474 17, 662 +49.4 +1.1
Hardware----------------------- 6,734 || 9,098 || 8,825 7,820 8,502 || 9,831 +46.0 +15.6
I
Insulated copper wire and cable----- 1,982 3,896 4,816 || 5, 160 4,817 | 6, 176 +211.6 | +28.2
Electric machinery and apparatus:
Batteries------------------------ 4,594 7,137 8,352 9,002 || 9,084 +278.7 46.5
Electric motorS.---- 8, 226 9, 818 8,320 8,343 9,552 +77.4 +14.5
Radio apparatus---------------- 6,031 8,705 || 9, 182 | 12,061 23, 122 +697. 9 | +91.7
Industrial machinery: -
Locomotives------------º-------- 8, 664 5,649 5, 113 : 5,327 3, 182 4,767 —45.0 | +49.8

Internal-combustion engines----| 6, 166 || 8,462 | 13,388 10,324 | 12,302 || 14,426 +134.0 +17.3
Construction and conveying In : |
chinery - 10,658 17,047 19, 127 22,791 26,485 | +261.6 +16.2
Mining and quarry machi 10,078 14,858 13,190 14,000 17,917 +173.2 +27.6
Oil-well machinery-------,------- 6,309 15,306 16,843 | 16, 103 25,004 +491. 0 +54.4
Power-driven metal-working ma- -
chinery----------------------- 10,346 11, 294 14, 316 20,391 || 27,421 || 33,439 +223.2 +21.9
Textile machinery--------- - 13,726 8,752 10,400 11,466 | 12,857 13,657 —. 5 +6.2
Sewing machines and parts- - 9,135 | 10, 514 10, 355 | 10,679 10, 220 12, 188 +33.4 +19.3
Sugar-mill machinery----- -| 3,799 ,305 4,042 5,824 4,692 4,437 +16.8 —5.4
Refrigerating equipment - 1 1,906 | 1,432 4,312 6,087 | 8,712 || 14,080 | +638.7 +61.6
Air compressor------------------ 2,218 2,959 4,665 5,873 || 6,738 7, 589 +242.2 +12.6
|
Office appliances: i
Accounting and calculating ma

chines--------------------- --| 2,048 5,965 8,701 11,475 || 13,878 14, 120 i +589.5 +1.7
Cash registers and parts- 4,064 5, 661 7,416 8, 147 | 10,605 | +237.3 +30.2
Typewriters and parts-- | 19,090 | 21,866 21, 960 24, 113 +101.4 +9.8
Printing machinery------------- | 14,276 15,246 | 16,573 || 19,061 || 4-138.8 +15.0
Agricultural machinery: .. |
Implements of cultivation-------| 4,464 11, 683 | 14, 898 14,732 15,740 21, 802 || +388.4 +38.5
Harvesting machinery 5, 159 15,824 17, 105 || 14,892 14,892 || 27,664 +436.2 +31.0.
Threshers---------- 2,601 || 5,515 5, 156 4,644 5, 7 2,560 –1, 6 —55.3,
Tractors and parts-- 7,807 | 18, 647 37,297 45,688 61,394 || 75,224 +863.5 +22.5
|
Motor vehicles and parts: i
Motor trucks-------------------- 8,271 || 19, 199 47, 176 70, 124 91,361 |111,435 |+1,247.3 | +22. G
Passenger automobiles- - 51,040 112,534 176,432 .207,966 [263, 576 (234,284 +358.9 –11. I
Automobile parts---- - 43,431 || 71, 128 87, 136 |102,358 |135,781 [183,915 +323. +35.4
Motorcycles------- --| 4,029 || 4,006 || 4,916 || 4,374 4,403 || 3,71 —7.9 — 15.7
Railway cars, etc.---------------- 15,469 14, 197 12,570 9,981 11,317 | 16,885 +9.2 +49.2
Medicinal and pharmaceutical prep
arations-----p--------------------- 14, 196 || 17,441 19,677 | 20, 103 || 20, 522 21, 282 +49. 9 i-H3.7
Paints and varnishes------- ----| 6, 179 7,843 10, 263 11,611 || 13, 263 14, 521 +135.0 +9.5
Sºap and toilet preparations--------- 15,223 14,985 | 16,806 || 16,853 15,721 | 16,059 +5.5 +2.1
Photographic and projection goods-- 17,222 | 19, 12! | 19, 419 19,812 21,476 || 31,566 H-83.2 | +47.0
usical instruments.---------------- 8,713 | 12,006 || 15,978 || 17,673 18, 131 18,932 +117.3 +4.4
Books and pamphlets ,8 9,708 || 11, 221 | 11,912 11,824 || 13,607 | +73.2 +15.1
*Includes ice-making equipment.

102664–40—4
24
Exports of semimanufactures, amounting to $729,000,000, in

creased slightly during the year. Foreign sales of copper (all forms)
increased by 8 per cent in value, owing entirely to a higher average
unit price; the quantity of copper exports declined by 11 per cent.
Exports of leather and of gas and fuel oil were substantially smaller
than in 1928, while the value of heavy iron and steel and naval stores
was considerably greater.
Crude material exports amounted to $1,142,400,000, a decrease of
12 per cent, as compared with 1928. The decline was largely attrib
Chart VIII.-EXPORTS OF LEADING COMMODITIES IN 1929
NM LLIONS OF DOLLARS
p loo 2OO ago 4OO 5oo Goo 7Oo 8Oo soo
cotton, UNMANUFActureo |
MACHINERY
ZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZ
Łºf-tº-f-c-f
PETRou_Eurº and PRocucts
ZZZZZZZZZZZZZZZZZZZZZZZZZZZZZ
Dº I I I
AutoMosul Es, PARTs, Erc
NGHouse PRocucts
Packinch-cus Z!
|
IRon AND STEEL-MILL PRODucts a
wheat (tcLUDING Flour)
coPPER
CHEMicals AND RELATED PRODUCTS a
ToBAcco, UNMANUFAcruRED
FRUITS ANo Nurs
cotton Manufactures
Lumet-R
coal- AND COkE
iron and stEEL ADVANCED MFRs.
RuBeets and MANUFACTURES
I LEATHER
Legend
wood MANUFACTUREs, ADVANCED a
1929
leza ZZ
PAPER AND MANUFACTURES
| FURs and MANUFACTURES
ºl
utable to smaller shipments and lower prices of cotton. Raw cotton

exports amounted to 3,982,000,000 pounds—a decrease of 13 per cent
as compared with 1928; owing to a decline in the average unit price of
cotton from 20.1 cents in 1928 to 19.4 cents in 1929, the total value,
amounting to $770,800,000, showed an even larger decrease—16 per
cent. Exports of leaf tobacco and undressed furs were smaller than
in 1928, while those of coal and crude petroleum showed increases.
Exports of foodstuffs were somewhat smaller than in 1928; crude
foodstuffs amounted to $269,600,000, a decrease of 8% per cent, while
manufactured foods totaled $484,300,000, an increase of 4 per cent.
25
The quantity of grain (wheat, rye, and barley) shipped to foreign

markets during 1929 was 24 per cent less than in 1928. Nevertheless,
in 1929 we sold abroad 87% per cent more of these grains than during
the average year from 1910 to 1914. Exports of corn were 29 per
cent larger and those of apples, valued at $33,000,000, were 24 per cent
greater than in 1928. Exports of wheat flour were the largest in five
years, and packing-house products showed an 8 per cent gain during
1929, as against declines in the two preceding years.
Tables 18 and 19 and Chart VIII show exports of leading commod
ities.
Table 18,-Exports of Leading Commodities
[Values in millions and tenths of millions of dollars. Reexports are not included]
Quantity Value
Commodity 1921 - 1921

1925 1926 1927 | 1928 1929 1925 1926 1927 | 1928 1929
|
Cotton, unmanufactured.---million lbs--| 3,420 4, 692 4,897 4, 579, 3,982 805.0 814.4 89.3 920. 0 770.8
Machinery 1 -- 400.0, 436.3 497.3| 612.7
Industrial------ 7| 179.6. 201.5 224.8. 277.8
Agricultural and implements 9 85.5, "60.7| 116.7|140.3
Electrical and apparatus----- §4. A $4. 8 90.8 121.4
-
Petroleum and products----------------- 554.5, 485.7. 525.9| 561.2

Refined oils----------- | 497. 2 429.7i 465. 2 493.4
Crude oil---------------------d 5. 28. § 25.9, 26.8 37.8
| -
Automobiles, parts, and accessories------|------|------ !------|------------ 177.2 320, 2 388.5 500.2 539.3
Passenger cars and trucks------------ | |
------------------------thousand--| 150 305. 384 , 507. , 536, 112.5 223. 6 278.1 354.9, 345.7
Packing-house products----million lbs--| 1,965. 1,448. 1,295. 1,339. 1, Aşi 286. 2 242, 9, 187.8 187.2 202.8
Meat products----------------do----| 839 5. 389 398 446, 139, 8: 106.8 71.0' 67.7| 78.8
Fats and oils------------------ do----| 1, 126 935, 907 940, 1,000. 146.4| 136, 1' 116, 8, 119.4| 124.1
Lard----------------------do----| 861| 699 681 760 829, 115. 6 108.6 92.0 98.7 105.5
Iron and steel-mill products-------------

-----------------------thousand tons--| 1,953| 2, 166 2, 182| 2,860 3,036. 166.8 174.1 160.5 179.6; 200.2
Wheat, including flour----million bush--| 227, 194| 229, 152 154, 321.9| 284.9 324.8 193.7 102.3
Wheat, grain-----------------do---- 159 138|| 168 96 90] 228.3| 201. 7, 239. 5' 119.9| 111. 5
Copper, including ore and manufactures |
--------------------------million lbs--| 877. 966 1,077. 1, 125' 998 129.8; 141.2 150.2 169.8 183.4
Chemicals and related products:---- ----|------|------ !------|------------ 107. 6 125. 2. 132. 3 137. 3; 152.2
Chemicals (coal tar, industrial, | - | -
medicinal) - - 56.2, 64.9 72.0 74.7 82.0

Pigments, paints, and varnishes-----|------|------------ - 14.8, 19. 3.
l
21.3, 25. 6. 29.1
Tobacco, unmanufactured--million lbs--| 503|| 487| 512 s 566. 164.6 136.9 139, 7, 154.5, 146.1
Fruits and nuts------------------------- 121.7' 120.3i 137.5
Cotton manufactures, including yarns- 133. 2. 134.6l 135.1
Cloth, duck, tire fabrig-------------- i | |
--------- —million sq. yds-- 525, 513 565 547, 564, 79.9 74.6 IG, 8 79.3 79.4
Sawmill products---- | 85.1| 97.4 107.6 108.8 110.6
Boards and timber- 83.9, 96, 6, 106.9 108.0 109.8
i
Coal and coke------------million tons-- 21 36 20 18 20, 131.1| 203.9 109.7 99.5' 106.2
Iron and steel advanced manufactures--- 73. 3 82.6' 87.0
Rubber and manufactures 70, 7 6.9, 5 77.0
Automobile casings- 33.8 31, 11 33.5
54.0 55.2 42.9
-----------------
Wood manufactures, advanced------ 38. 1 37. º 40.9
Paper and manufactures-- 26.9 30.9 37.4

Furs and manufactures--------- 30.9, 39.5, 35.7
Photographic and projection goo 19. S. 21. º 31.6
Naval stores, gums and resins: 34.3| 26.4 31.0
Oilcake and meal.----------milli 30.2, 27.2. 28.4
Barley and malt---------- 38.5, 48.4, 27.5.
Books and printed matter--- 24. 2. 24. 2 27.1
-------------------------
Silk manufactures---- -
§§ $3, $
.8, 15.3; 3.5
18.5, 20.4
Tobacco manufactures- 22. (; 20. 5, 16.5 24. 7, 19.5
products--------- 30. 1 19.0, 17. 4, 18.5, 17.9
Leather manufactures-------------------------|------------|------------ 21.8 18. º 18. * 17.5, 17.7
1 Includes office appliances and printing machinery. * Average for years 1922–1925.
26
Table 19.-Per Cent Change in the Leading Exports and Percentage Which Each
Forms of the Total Walue of Exports
Value
Quantity—Per cent
º in 1929 P t ch - P t total
- to In- er cent change 1n er cen
Commodity 1929 from- exports
|
-
|
1921– 1921– 1910–1921–
1910–1914 1925 1928 1910–1914 1925 1928 1914 1925 1929
| .
Cotton, unmanufactured.----------------- –9.9 +16.4|–13. l +39. º
–4. 21–16. 2. 2.9 sº 14.9
Machinery-------------------------------|---------
Industrial-----------------
+287.2 +90. #;
ź . 4 ºf 11.9
. 6. H66.6+23.6, 3.7, 3.9, 5.4
Agricultural and implements- +247. 9-1-171. 2. +20.7 1.9; 1. ; 2.7
Electrical and apparatus--- +481.9 +75. 2'-H33.7| 1.0 1.6 2.4
Petroleum and products------------------|---------|-------|------ +339. 3 +38.5 +6.7 6.0 9.4|| 10.9
Refined oils------------ +346.4 +35.7| +6.1 5.2, 8.4 5.6
Crude oil----------------------------- +492.3 +68. jº. 1 .3| .5 .. 7
Automobiles, parts, and accessories-------|---------|-------|------ --2, 133.8 +204.4 +7.8 1. 1; 4.1. 10.5
Passenger cars and trucks---- +2, 726.3]+257.4 +5.7+1,688.5 +207.3 —2.6 . 9, 2.6 6.7
Packing-house products----- - +15.7 —26.2 +8.4 +34.2 —29. 1 +8.4 7. 1; 6.6 3.9
Meat products------- - —14.2 —46.9|+11. § +17.0 –43.7+16.3 3.2. 3.2 1.5
Fats and oils---------- -; +36. 8 –10. 7 – 6.9 +48. Q -15.3 +3.9| 3.9| 3.4, 2.4
Lard----------------------------- +74. —3.7 ––9.2 +102.6 —8.7| +6.9| 2.4 2.7i 2.0
Iron and steel-mill products

Wheat, including flour-----
+39.3 +55.5 +6.2
+47.0 —32.0 +1.5
+119.2 +20.0|+11.4
+81. 1 —40.3 –.8
4.3
5.0.
..
7.5' 3.7
3.9
Wheat, grain------------ +58.4 –43. 4 –6.4 +102.5' –51. 2 –7.0 2.6 5.3. 2.2
Copper, including ore and ma +20.6 +13.9–11.2 +51.3 +41.3 +8. Q 5.7| 3.0, 3.6
Chemicals and related products--
Chemicals (coal tar, industrial
-------------
|
+226.3l +41.5]+10.8,| 2.2 2.5 3.0
inal)--------------------------------|----------------|------ +276.4 +46.0 +9.71-----|----- 1.6
Pigments, paints, and warnishes------|--------- '-------|------ +328. 1 +97.2|+13.7| .3 º .6
Tobacco, unmanufactured---------------- +44.3 +12.5 —3. 1 +226. 3 –11.2 —5.4; 2.1 3.8 2.8
Fruits and nuts---------------------------|---------|-------|------ +370.7 -H05.9| +6.3| 1.3 Fº 2.7
Cotton manufactures, including yarns-- - 1.5 +. 3. 2. 1 3. 1 2.6
Cloth, duck, tire fabric +41.6 +7.5 +3.2 +193.5 —. 6] +. 1 1.3 i. 1.5
Sawmill products---------- +67.5 +30.0 +1.7 3. 1 2.0: 2.1
Boards and timber +78. 5. +30.8 +1.6 2.9 1.9 2.1
Coal and coke---------------------------- .0 +6.7| 2.6 3.0: 2.1
Iron and steel advanced manufactures--
Rubber and manufactures------------
.8 +5.4 2. 1
.3|+10.7 .6
1. ;
1.7
.9| 1.5
Automobile casings------ .6| +7.8|----- .4 .6
Leather--------------------------------------------------------- - —3.0|–22.2 1.8 1.0 .8
Wood manufactures, advanced-----------'---------|------------- +50.5 +32.7| +9. 1 1.2 .7. .8
Paper and manufactures---------------------------|------- ------ +249.9′ +51.9|+20.8 .5 .6, .7

Furs and manufactures----------------------------|------------- +143.3 +58.5 –9.7 .7] .5 .7
Photographic and projection goods- --
Naval stores, gums, and resins----------------------------------
+295.4 +77.3|+47.0
+32.7. --38.5|+17.3| 1.1
. 4. . :
: 5,
.. 6
.5
Oilcake and meal +7.7 --20.0 +14.9| +4.4| 1. 1: .. 6, .. 6
Barley and malt--- ūi +5.3.5 +ižs—13.3 :3 & 5
Books and printed matter-------------------------'-------------
Sh----------------------- -
+195.0 +36.6]+11.8
+142.0 +30.8|+13. 1
.:
.5
-s
.4
.5
.5
Silk manufactures---------------------------------------------- +977.6, +56.8 +9.3 . 1: .3 .4
Tobacco manufactures------------------------------------------ +253. 7. —13.8–21. 1 .. 3, .5 .4
Pairy Products------------------------------------------------- +436. º –40. 5 –3. 1 . 2, .7 .3
Leather manufactures-----------------------------|------- ------ –6.6 –18.5 +1.3 . º . 5: .. 3
Leading Import Commodities.

The most conspicuous change in our import trade during 1929 as
compared with 1928, was a 15 per cent increase in the value of semi
manufactures; the total amounted to $880,600,000. Outstanding
factors in this increase were our greater purchases of copper and its
higher average unit price; imports of copper (all forms combined)
increased by 24 per cent in quantity, while the value amounted to
$154,000,000, an increase of 57 per cent. Imports of vegetable oils
(expressed) and fats increased by 41 per cent in quantity and 29 per
cent in value. Other semimanufactures showing substantial gains in
value include nickel, tin (bars, blocks, and pigs), shellac, wood pulp,
27
pearls and semiprecious stones, dressed furs, and ferro-alloys. The

value of imports of fertilizers, the only leading group of semimanu
factures showing a decline, was 7 per cent smaller. Imports of unre
fined copper, tin (bars, blocks, pigs), unbleached chemical wood pulp,
copra, tung oil, and palm oil established new quantity records.
. . There was an increase of 6 per cent in imports of crude materials,
the value of which amounted to $1,559,000,000. Imports of raw
silk, wool, and cotton, miscellaneous vegetable fibers, and ores of
metals were substantially greater in value. Although larger quantities
of hides and skins and of crude rubber were imported, their values
were smaller. Rubber prices declined still further during 1929; the
average unit import price for the year was 19 cents per pound, as
against 25 cents in 1928, 36 cents in 1927, and 55 cents in 1926.
Crude rubber imports were of record quantity, amounting to 1,263,
000,000 pounds, as compared with 978,000,000 pounds in 1928, an
increase of 29 per cent. Imports of raw silk amounted to 87,068,000
pounds valued at $427,000,000; both quantity and value were greater
than in any previous year.
Table 20.—Imports of Leading Commodities
[Values in millions and tenths of millions of dollars. Figures represent general imports]
Quantity Value
l -- :
Commodity 1921–
1925
1926 1927 | 1928 1929 |º 1920 1927 1928 1929
52 66
i
74| 75
-
87| 348. 1, 302. : 390. 4, 368.0, 427.1

1,340, 1,493 1,433 1,457| 1,482. 205.8 322.7| 264.3' 309. 6. 302.4
- I
681| 926 955 978] 1,263. 192.9 505. 8] 339. 9. 244. 9. 241.0
8, 118, 9,420 8,431 7,737 9,777. 205. 4, 232.5 258.2, 207.0, 209.3
------
2, 375 3,701: 3,974 4,314|| 4,845

'..... ii. 3 iſ...} iſ... ii. ſ.3
90.9 124.0 131.5' 139.4| 144.5
Copper, including ore and manufactures

do--- - 598 779. 718 787 974| 77.8 9 85.0 98.2, 153.7
Chemicals and related products--------- - 3 120. 9, 1332 iſ...i
Chemicals (coal tar, industrial, me
dicinal) 58.0, 53. 3| tº
Fertilizers- 58. 8 78. | 72. 3
Petroleum and p 113, 4, 132.8 143.5
Crude oil .3 78.6, 90.5, 79.9
Refined oils------------------do----. - .* 33.6 40. 9. 61. 0
Hides and skins------------ Jø. . 8, 112.8 150. 8, 137.3
Furs and manufactures - 7.4, 135. 6, 118.4 122.5
Paper base stocks----------------------------- 94. . 5; 113. 6 112.3; 118. 1
Wood pulp---------thousand tons-- 1,165. 1,546 1,496 1,567; 1,079, 67.0 91.2 85.8: 83. § 88. 6
Vegetable oils, expressed, and fats |
.-------------------------- million lbs-- 613 780 773 820, 1,157, 59.7 79.1, 78.7 77.9' 100.7
Tin (bars, blocks, pigs)-----------do----' 132, 173 159 175, 195, 56.5 104. 8 100. 9. 87. 91.8
.9 - 87.3
- - 86.6
- - 82. 1
. (5 - 79.3
- - 46.5
.8 78.4 78.5
t
l
82.2 67. 80.1 77.4
67. 2' 66.2. 69. 3. 69.3
66.4 54.4, 57.1 56.0
74.6 64.0. 54.9 54.2
Boards, planks, deals-million bol 1, 59 55.4 49.5, 40.4 43.3
Tobacco, unmanufactured.-million lbs-- 67 60. o 74. o 55.2, 53.8
Qotton, unmanufactured
Socoa or cacao beans....-----
166
365 425|
is
426
379
206 172
223; 46.3| 46.2, 45.7| 42.8 53.3
503. 3ſ. 3| 42.7: 56.8; 47. 2. 49.5
Yºgetables and preparations.----------|------------
Flax hemp, º ramie manufactures---|------
:------|------|------ 26.2 38.4, 38.4, 39.9 47.8
44.8 48.5 52.6 46.5, 47.2
jºº º .3| 28.6 37.4; 43.2' 44.6
Jºather manufactures. 17.2. 21.7| 25.7| 41.6
“at products------------ - 28.7 34.9| 35. 6, 40.9
28
Table 21.—Per Cent Change in the Leading Imports and Percentage Which Each
Forms of the Total Value of Imports
Value
uantity – per cent I
ange in 1929 from— Per cent change in Por cent of
Commodity 1929 from- total imports
l
* 1921-
1925 1928 1910-1914
t
-
1921–
1925
i
1928 º
1910–1921
1925 1929
+266. 0. +67. 1 +15.3 +454.3, +22.7+16. 1, 4.6 10.1 9.7

+64.8 +10.6 -H1.8 +198.1 +46.9 —2.3; 6.0, 6.0 6.9
+1,094.5 +85.4 +29.1 +179.11 +24.9 -1.6 5.1 5.6 5.5
+125. 2 +20.4|+26.4 +102.2 −29.1 +1.1| 6.1. 8.6 4.8
---------------------------- +1,427.9; +55. 1; +4.3' .6 3.1: 3.7
+1,934.1 +104.1 +12.3 +2,907.8 +59.0 +3.6 3| 2.6 3.3
-
-
+164. 1ſ +62.9 +23.8 +221.3' +97. s +56.5 2.8 2.3 3.

Chemicals (coal tar, industrial, ---------- º -------|-- +64. s +28.5, +, 6' 5.2, 3.2 t
3.
medicinal) . .0, +35.6+12.5 -----|----- 1.
j; +27.2 —7.4 2.4 1.6 1.
.0 +58. 1, +8. 1 , .4; 2.6 3.
|ſ Hijº-ji)
** U--174. 7+10. Oſ
iſ 2.É i.
.6| 1.
31.3 2 2.7| 3.
Furs and manufactures +441.5 .4| 2.3 2.
Paper base stocks-- +329.3 .6 2. #
2.
Wood pulp---- - +505.4 .9| 1.9 2.
Vegetable oils, expressed, and fa - +88.8 +41.1; +279.6 .6 1.7 2.
Tin (bars, blocks, pigs)--------------- +83. 9. +47.7 --11.7 -i-121.2 .5l 1. 6 2.
Wool and mohair-- +35. 1 — 17.5 +14.6 +122.5 3| 3.Q 2.
Fruits and nuts t --' +104.9 .5 2.2. 2.
Art works- +-134.3 .1 . 9, 1.
Oilseeds--- +424.4 .9 1.5 1.
... Flaxseed -- +277.7 .7i 1.0 1.
Wool manufactures, including yarns, |
°to---------------------------------- +204.7 +21.5 + 1, 1.3 1.9 1.
Purlaps------------------------------ +103.0 +28.1|–8.4, 1,7| 1.8 1.
Cotton - -
yarns, otc- +2.7 —20.0 (i) ; 4.0 2.5 1.

Diamonds--------- +61.4 +6.4 –2.0 2. 1 1.5, 1.
Sawmill products--------- +145.5 —20.8 -1.3 1.3 2.0 1.
Boards, planks, deals-
Tobacco, manufactured-------
1|
0
+145.7
+69.8
—13.0 +7.
–17.0 —2.4|
; 1.Q. l. 4: 1.
1. 9. 1.9 1.
Cotton, unmanufactured.--- +34.5 +29.8 +158.3 +15.2+24. g 1.2, 1.3, 1.
Cocoa or cacao beans------- +258.0 +30. 1 +33.8 +209.2 +58.0 +4.8 .9 .9' 1.
Vegetables and preparations---- ---------------------- ------- +232.0 +82.7+19. | .9 ... 8 1.
Flax, hemp, and ramie manufactures- +48.3 . Hº. 4 +1.6 1.9 1.3, 1.
iºniº “. -- +422.3 +192.0 - 3. 1 .5 .4; 1.
Leather manufactures----------------|----------|-------- !------- +331.0 +225.4+62.0 .6 ! -
Meat products-----------------------|---------- +200.2 +11.1 +430.9 +112.0+14.8 .5! .6 .
. .. . . - — —
| Less than one-tenth of 1 per cent decrease.
Imports of finished manufactures, totaling $998,700,000 for 1929,

showed a 10 per cent gain, as compared with 1928. Our purchases
of gasoline, leather manufactures, machinery and vehicles, and art
works were substantially larger. Newsprint, the leading finished
product imported, showed new record figures in both quantity and
value—4,845,400,000 pounds at a value of $144,500,000.
The value of imports of foodstuffs—$962,000,000—increased by
$6,500,000. , Imports of cane sugar—9,777,000,000 pounds—were
larger than in any earlier year and showed an increase over 1928 of
26 per cent; however, there was only a slight increase in their value,
owing to a lower average unit price—2.1 cents in 1929, as compared
with 2.7 cents in 1928. A reduction in the average unit price of cocoa
caused the value of imports of that commodity to increase by only
5, per cent, notwithstanding a quantity increase of 34 per cent.
Coffee imports were slightly larger in quantity but smaller in value;
1,482,000,000 pounds were entered at a value of $302,000,000. Im
ports of meat products and molasses were substantially larger than
29
a year earlier, while those of wheat for manufacture in bond and export
were much smaller. -
Tables 20, and 21 and Chart IX indicate the changes in quantity

and value of leading import commodities in recent years.
GEOGRAPHIC DISTRIBUTION OF FOREIGN TRADE
A growth of $58,000,000, or 12 per cent, in exports to South Amer

ica was a conspicuous geographic feature in the United States export
trade in 1929. Exports to North America, Oceania, and Africa also
Chart IX. —IMPORTS OF LEADING COMMODITIES IN 1929
NMI LLIONS OF DOLLARS

o 50, loo 15o 2Oo 25O 3oo 35o 4OO 45 o
siuk, Raw
coffee
Rueeera, cºupt ZZZZZZZZZZZZZZZZZZZZZZZZZZZ

I-I-I
sugars, carve ZZZZZZZZZZZZZZZZZZZZZZ
=T-I
coºpera
ZZZZZZZZZZZ
ZZZZZZ
newspairwt ZZZZZZZZZZZZZZZ
-T
Petroleum and PRocucts
1-inces and skins
Pruss and Manuractures

- PAPER east stocks
vegetaeu-E oils, ExPRESSED
- rin, (eass, eLocks, Pigs)
lwool and Monas
FRurts and Nurs
:
-
ART woºts
... oil-see-D's
wool. Manufactures
- Legend
eurº-Aºs
e2e ºn
1928 22
FERTILizers
corrcn M.ANufactures
===
showed marked gains; those to Europe and Asia, however, declined
slightly, Larger foreign sales of finished manufactures were mainly
responsible for the aggregate gain in exports; consequently, increases
were most pronounced for those continents taking a large proportion
of this class of articles. Cotton, grain, and tobacco form a consider
able part of the exports to Europe and to Asia. In 1929 decreases
in the value of raw-cotton exports to Europe and of tobacco and
raw-cotton exports to Asia counterbalanced the aggregate increases
in finished manufactures, and the result was smal declines in the
total sales to those continents. Imports from each continent were
greater than a year earlier, those from South America, Europe, and
Asia showing the most pronounced gains.
30
Table 22,-Foreign Trade by Continents and Great Trade Regions

NOTE.-Exports include reexports of foreign goods. Data cover period beginning July 1, 1876, and ended
Dec. 31, 1929. Hawaiian Islands are included in Oceania prior to 1901; the Philippine Islands are included
in Asia for all years; Turkey in Europe is included in Asia beginning 1928.
North America |
Aiº, Europe Asia || Oceanial Africa
Southern
Yearly average or year
--> -> --> --> -
3 5 § 5 # 5 3 5
: E Q Q º § 5 || 3 || 8
E
c
ſ rº-
:
-----
I
k-
&
-
:
k- *- !-
& | < | < || 3 || 3 || 5 || 3:

------
- !- -
i
k
EXPORTS |
1876–1880------------------ 677 22. 3.3 562 83.1 11ſ 1.7 7| 1.1 4 0.6
1881-1885------------------ 792 28; 3.6 642 81.0| 18, 2.2 13 1.6 4. .. 5
1886–1890------------------
1891–1895
1896–1900 -
1901-1905------------------
738
- , 892
1, 157
1,454
ii 32,
33, 3.7
36
4.3
3.1.
46 3.2 1,051. 72.3|
586 79.3
ſº 79.5
887, 76.7
20, 2.8
21 2.3 14, 1.6
45
16. 2.0)
3.9| 26 2.3, 17| 1.5

77 5.3 30 2.0 28 1.9
3.
.5 .6
.. 5
1906–1910------------------ 1,779 82 4.6 1,213 68.2 .97 5.5 32 1.8 18 1.0

1911-1915------------------
1915-1920 -----------------
1921-1925------------------
2, 371
6, 521
4, 397
i 445 1 i 122 5.2 1,517 64.0|
361, 5.5, 4, 124 63.2
297 6.8. 2, 318, 52.7|
133 5.6
562 8.6 109 1.7
499; 11.3| 141' 3.2
52 2.2 27| 1.1
82; 1.3
70 1.6
1910–1914 (fiscal)----------- 2,166 121. 5.0. 1,350, 62.3| 121 5.6 48' 2.2 25, 1.1
1913 (calendar) -| 2,484 } 147 5.9 1,500 60.4 154 6.2 54 2.2 29, 1.2
1921--------- – 4,485 1 273; 6.1, 2,364 52.7. 533 11.9|113 2.5 73| 1.6
1922– - 3,832 226 5.9 2,083 54.4 449 11.7 102 2.7. 56 1.5
1923– -| 4, 167 426 1 269. 6.5 2,093 50.2 511 12.3. 146; 3. 5. 61' 1.5
1924- - 4, 591 314| 6.8. 2,445, 53.3| 515 11.2: 157; 3.4 70 1.5
1925– – 4,910 403 8.2 2,004 53.0 487 9.9, 189, 3.9 89 1.8
1926 4, 809 444. 9.2 2,310 48.0 565 11.7 213 4.4 101| 2.1
1927--- - 4, 865 438, 9.0| 2,314|47. b. 560 11.5, 194| 4.0; 107| 2.2
1928--- -| 5, 128 481; 9.4| 2, 375|| 46.3| 655 12, 8; 180' 3.5 117| 2.3
1929----------------------- 5, 241 539; 10.3| 2, 341| 44.7| 643 12.3| 192, 3.7; 131| 2.5
GENERAL IMPORTS
1876–1880------------------ 493 1 68 13.8. 248 50.3, 56 11.3, 5: .9; 2 -5
1 76' 11.4| 368 55.1, 70 10.5 11. 1.7| 4 .. 6
1881–1885-- - 667
;
1. 82, 11.5, 402 53.0. 74 10.4
1886–1890__
1891–1895- -
1896–1000__
1901–1905__
-
_|
717
785
742
972
l
1§
13.3
i
122 12.5|
117, 14.9
98 13.2
398 50.6,
390 52.6,
408 51.3,
85 10.8 16, 2.1
108 14.6 23: 3.1. 10 1.3
150 15.4 9 .9| 11| 1.1
16. 2.3 3: .. 5
5 .6
1906–1910__ - 1,345 | 13.4 157 11.7| 690. 51.3, 205 15.2, 17. 1.2 17| 1.2
1911–1915---- - 1,712 14.5 220 12.8| 798 46. 6. 271 15.8| 19, 1.1| 24| 1.4
1915–1920 1--- -|3,358, 17. 5 5gil 17.6 683. 20.3 gið 27, iſ 70 2 1 01 2.7
1921-1925-------- -| 3,450 } 14.9 421, 12.2 1,049. 30.4 943. 27.3 541.6 71 2.1
1910–1914 (fiscal) 13.5 207 12.2 835 39. § 259, 15.3' 17 1.0 23|1.3
1913 (calendar) 13.7 198. 11.1 s63148.2 299||13.7 iſ .9| 2 | 1.3
417. 16.6 29, 11.8. Tº 30.5 61s. 24.6, 35. 1.4 40. 1.6
359 11.5 991, 31.8 827. 26.6, 49| 1.6 65 2.1
: 456, 14.6
§ 3;
593, 16.4
467, 12.3| 1, 157. 30.5 1,020; 26.9
466 12.9| 1,096 30.4 931 25.8
59 1.6 87| 2.3
49| 1.4| 73 2.0
}§ ! 522. 12.3 519, 12.3| 1,238. 20.3 1,319 31.2 78 1.8 92 2.2
j| 11.0 526, 11.9 568 12.8 1,286. 29.0 1,401 31.6 68 1.5, 96 2.2
4| 11.6 501| 12.0 518, 12.4 1,276 : 5, 1,2; 30. Q. 55; 1.3| 93 2.2
12. 2. 401 11.3 569 13.9| 1, 249 30. 5, 1, 169 28.6 53' 1.3| 90 2.2
11.7 487| iod 640. 14.5| 1, 333 ă 1, 280| wº 57, 1.3 109ſ 2.5
l
EXPORTS TO NORTHERN NORTH AMERICA AND EUROPE ADJUSTED (SEE TEXT)
Continent i 1910-
1914 | 1921-
1925 1913 o
1922 || 1923 | 1924 1925 1920 1927 | 1928 1929
To Northern North
America:
Value-------------- 313 555 402 505 620 Ö28 | 601 || 691 | 731 843 912
Per cent----------- 14.4 12.0 10.2 13.2 14.9 11.5 ! 12.2 14.4 15.0 | 16.4 17.4
To Europe
alue-------------- 1,357 2,390 1,506 || 2,102 || 2,134 2,551 2,661 2,366 2, 428 2, 458 2,390
Per cent----------- 2.7 54.4 || 60.6 56.4 51.2 55.6 54.2 49.2 49.9 47.9 45.6
Period July 1, 1915, to Dec. 31, 1920.

31
Table 23.−Per cent Increase or Decrease in Foreign Trade by Continents
Per cent change in the Per cent change in the

value of 1929 exports from-value of 1929 imports from—
Continent
1910–1914 1921–1925, 1928

*
1910-91, wº-ºº:
- I
1928
Total---------------------------------------- +142.0 , --19.2 +2.2 +160.5 +27.5 +7.5

|
North America------------------------------------ +178.4 +30.2 +5.6 +183.0 +7.8 +2.2
Northern-------------------------------------- +200. 6 +53. 3 | +4.0 | +334.7 | +29.9 +3.0
Southern-------------------------------- +139.3 –2.4 || +9. 2 | +104.3 –9.2 +1.4
- +81.5 +12. 2 | +209.3 +51.8 +12.4
£urope-------------------------------------- +73.3 +1.0 –1.4 +59.3 | +27.0 +6.7
Asia---- +431.6 +29.0 –1.7 | +395.2 | +35.8 +0.5
Qceania +302.4 +35.8 +6.7 +227.4 +4.7 +5.8
Africa-- - “… . - +11.8 +381.1 +51.9 +20.4
Latin America.-------------- .4
Far East------------------------------------------ .. 3
Adjusted exports to—

Northern North America
Europe
1 Less than one-tenth of 1 per cent decrease.
Growth in Exports and Imports by Continents.

Increases of 12 per cent in exports to South America and to Africa
and of 4 per cent to northern North America during 1929 were con
tinuations of trends which had been practically unbroken since 1922,
while a 9 per cent increase for Latin North America and 7 per cent for
Oceania were reversals of downward movements shown in the two or
three preceding years. Exports to Europe and Asia each decreased
by about 2 per cent, the most important factor in the decline being
smaller shipments of cotton. As compared with the average value
for 1921–1925, the years immediately following the period of postwar
inflation, the exports of 1929 to South America and Africa showed
increases amounting to more than 80 per cent; those to northern
North America, Oceania, and Asia advanced by 53 per cent, 36 per
cent, and 29 per cent, respectively, while the value of exports to Latin
North America and to Europe was approximately the same as for that
period.
Imports from North America in 1929 were only 2 per cent greater
than in 1928; those from other continents, however, showed marked
gains. There was a 12 per cent advance in imports from South
America; the growth in this trade has been practically without reces
sion since 1921. A 20 per cent gain in imports from Africa represented
a larger expansion than in any year since 1925. Imports from Europe,
Asia, end Oceania showed increases of 6.7 per cent, 9.5 per cent, and
5.8 per cent, respectively, which were the more significant in view of
declines in the two or three preceding years. As compared with the
average for the period 1921 to 1925, imports from South America and
from Africa last year were one-half larger, while the increases for
Europe, northern North America, and Asia ranged from 27 per cent
to 36 per cent; imports from Latin North America were 9 per cent
Smaller than the 1921–1925 average, chiefly because of the lower price
of Cuba sugar and reduced production of petroleum in Mexico.
32
Distribution of Trade by Continents.

Exports to each continental area except Europe and Asia for 1929
represented a larger proportion of the total than a year before, and
as compared with the period 1921–1925, the proportion was larger for
all continents except southern North America and Europe. South
America took 10.3 per cent of the total, in contrast with 9.4 per cent
in 1928 and 6.8 per cent for the period 1921–1925, and Africa's share,
which is naturally small, advanced to 2.5 per cent. The proportion
of our exports going to Canada and Newfoundland was 18.3 per cent
for 1929, as against 18 per cent for 1928 and 14.3 per cent for the
Chart X.—PERCENTAGE DISTRIBUTION OF FOREIGN TRADE BY CONTINENTS
PER CENT
ExForts o |O 2O 3O 4. O 5o GO 7O 8O 9O
| 9 || O-1 e 14
| 92 || - 1925
| 925
I e2G
| e27
| 928
1929 Fº ºSNE
EUROPE CANADA sº LATIN No. souT
new FOUNDLAND AnneRica Anne Rica AF.
PER CENT
INA PORTs o 1O 2O 3O 4O 5O GO 7o 8O so
I e i o - I e 14
| 92 - 925 ,, , ==&º-º-º-º-º-º-º-º-º-º-º-º-º:
| 925
| 926
| 927
| 928 - -- - - - -
. 3 + 1.7 sº - - -
1 <>2<> - - ZZZZE&EEEE
EUROPE CANADA ETUATIN No.
NEwFoundLAND ANMERICA AMERICA esco.” "
* Represents grain exports through Canada to Europe.
eriod 1921–1925; this proportion is, however, swelled considerably

§ the fact that much grain credited to Canada is in fact in transit
through that country to Europe.
Europe continues to be much our largest export market, but its
proportion has declined from 75 per cent at the beginning of the
present century to 53 per cent in the period 1921–1925 and 45 per cent
in 1929. The fact that this decline in ratio has taken place despite
a substantial growth in value of exports to Europe emphasizes the
importance of the expansion in our trade with other continental
8.TeaS.
A marked feature of import trade has been the advance in relative
importance of those continents from which we purchase raw materials
for our industries. Canada and other northern North America
supplied 11.7 per cent of our total imports in 1929, as compared with
33
11.5 per cent in the period 1921–1925, and 5.4 per cent in 1901–1905;
for the same periods Asia's share showed 29.1 per cent, 27.3 per cent,
and 15.4 per cent, respectively, while that of South America repre:
sented 14.5 per cent, 12.2 per cent, and 12.5 per cent, respectively.
Europe ranked first among the continents in our import trade during
1929, furnishing 30.3 per cent of the total. Prior to the World
War we were purchasing from Europe about one-half of our total
imports, whereas since 1921 the ratio has stood at approximately
three-tenths, fluctuating only slightly from year to year.
Tables 22 and 23 and Charts X and XI show the value of both
exports and imports and the percentage distribution by continents
for a number of years.
Table 24.—Balance of Trade, by Continents and Great Trade Regions
Excess of *::::::...} ºrts (—) in Per cent imports are of exports
Continent -- –––––
# |%; 1926 1927 | 1928 1929 |}|† 1028 1927 1928 1929
-- |
Total.----------- +477| +947 --378 +681|+1,037| +841 78.0 78.5 92.1 86. o 79.8| 84.0
+201| +231| +262 +361| +424 +446. 37.0 63.2. 64.9| 57.3, 54.1 53.6
–47 –70 –97 –93 –64 –33 126.2 115. 7 122.7 122.9, 116.0; 107.7
–86 -124 -124 –80 –89 –100] 170.9 141.8 128. 1 118.2 118.4 118.6
+514|+1,268|+1,024|+1,037|+1, 126-1-1,008 61.9| 45.3 55.7. 55.2 52.6 56.9
—137 –444, -836 —697 —514 –637| 213.6, 189.0 248. 1 224.6, 178.6| 199.0
+30 +87] —H·144 +139| +127; +135 36.2 38.2. 32.1| 28.2 29.7| 29.5
+2 –2 +5 +14 +27 +22 91.6 102.5, 95.2 87. 1. 77.3| 83.2
Latin America------- —133| –194 —222 –173| –152 –134|| 144. 1 126, 1| 125.4| 120. 5 117.3| 113.8
Far East------------- –96 —343| —672 –539 —358 –482; 157.8 154.3| 187. 1 172.2 143.5| 158.8
t
Adjusted figures:
Northern North i |
America-------- +194| +158 +106 +247 +341|| --897| 37.9 71. 5. 70.2, 66.2, 59.4| 56.5
Europe----------- +521|+1,341|+1,081}+1, 151|+1, 209-H1,057| 61.6 43.9 54. s
59.6, 50. 8 65.8
Balance of Trade.
Exports to four of the Seven great trade regions exceeded imports
in 1929, as is the normal position, the excess for Europe being larger
than for any other continent. European countries purchase from us
large quantities of cotton and grain, while our imports of crude
materials and foodstuffs from them are relatively small; Europe also
takes somewhat more finished manufactures from us than we receive
from that continent, although our imports of finished articles—many
characterized as luxuries—from that continent are large. In 1929
this favorable trade balance with Europe was the smallest since 1923,
owing to relatively small exports of cotton and grain. Exports to
northern North America, Oceania, and Africa also exceeded imports,
because of our large sales of finished manufactures to those conti
nents. Imports from Asia, South America, and Latin North America
—those continents which are the main sources of our imported crude
materials and tropical foodstuffs—as usual exceeded exports, and for
South America and Asia the excess was greater than in 1928. At
the same time that we are increasing our sales of finished manu
factures to those continents, we are taking constantly more of their
products.
34
Chart XI.-MERCHANDISE EXPORTS AND IMPORTS BY CONTINENTS
NMILLIONS OF DOLLARS
| Ooo 15 2OOO
ØE
EZF
EUROPE
/
19 || O-I's 14
192 | – 1925
1925
1926
1927
1928
1929
5OO I
CANADA & NEWFOUNDLAND
19 || O-19 || 4
1921 – 1925
1925
1926
1927
| 928
1929
LATIN NORTH ANMERICA OCEAN IA
| 9 || O-I e 124
1921 – 1925
1925
1923
1927
| 928
• 1929
3 OUTH AMERICA AFRICA
19 O-19. 14
|92 || - 1925
| 925
1926
1927
1928
1929
NotE.—Distance between arrows represents grain exports through Canada to Europe.

35
Table 25,-Continent Distribution of Foreign Trade, by Quarters

1927 1928 1920
Continent | | | | -
Jan.-Apr.—July– Oct.- Jan.-Apr.-July- Qct.- Jan.-Apr.-July– Oct.

Mar. June | Sept. Dec. Mar. June Sept. Dec. 'Mar. June Sept. Dec.
| i ––– - - -
- | l
Exports--------------- 1,201 |1,165 (1,142 1,357

North America: |
1,203 |1, 175 1, 1801, 57.1
|
hº 1,204 |1,221 | 1,397
Northern 1-- 172 235 228 210 | 100 244 252 | 238 || 235 | 273 240 213
Southern-- 104 || 104 98 102 99 95 92 110 ! 113 || 103 || 105 112
South America-- 115 105 || 108 110 | 106 | 121
111 142 158 || 130 132 119
Europe'------- 573 || 515 523 703 ; 586 || 512 494 782 647 || 473 523 698
Asia--------- 160 | 128 113 158 i 150 145 || 145 214 181 145 || 138 179
Oceania----- 51 52 44 45 43 41 48 48 49 48 50 45
frica---------------------- * * * * * * * * | 35 | 32 33 || 31
Imports--------------- 1,046 (1,077 (1,080 1,031 (1,069
North America:
* as 1,0s, 1,12, 1,18, 1,014 | 1,040
Northern--------------- 110 | 118 124 134 114 | 121 | 130 134 121 | 131 135 | 129
132 || 145 || 115 109 || 130 124
Southern--
; #| }; , ; ; ; . . 102
. :. 104
. . 134
. |. .
137 || 104
. ; .92
152
305 | 308 || 320 343 308 294 308 339 ig21 || 334 345 || 332
317 | 343 || 318 , 278 321 291 276 281 | 324 || 342 309 || 305
ić “; “i; ‘ī; “i, “ſ ‘ī; “º iş | 31|| 13 8
29 || 23 19 21 20 22 21 20 29 || 34 24 22
1 Exports to northern North America include grain credited as exported to Canada but actually destined
for Europe. (See Table 22 for adjusted annual totals.)
Chart XII.-DAILY AWERAGE EXPORTS BY CONTINENTS

DOLLARS
Northern North *2.

"-- -
America
36
Continent Distribution by Quarters.

Exports to Europe usually show a marked expansion in the fall
and early winter months and decline to a low figure in the summer
in consequence of a large proportion of cotton and grain in this
trade; exports to Asia also show a moderate expansion in the fall
because farm products (cotton and tobacco) form a considerable part
of that trade. In 1929 the upswing in the later months of the year
was less pronounced than in 1928, reflecting the falling off in exports
of farm products. Moreover, there appeared a marked expansion
during the first three or four months of the year in exports to southern
North America, South America, and northern North America, as a
result of the rapid increase in sales of finished manufactures.
Although seasonal factors in imports from each continent are less
marked than in exports, imports from all the continents except
northern North America and Europe tend to be larger in the early
part of the year. The same general trends prevailed in 1929 as in
earlier years, and with only one exception imports from each conti
nent during the first three quarters of 1929 were larger than in the
corresponding quarters of 1928. However, in the fourth quarter,
imports from South America, Asia, and Africa showed increases,
while those from the other continents declined.
Foreign Trade with each Continent, by Economic Classes.
Distribution of foreign trade with each of the continents by eco
nomic classes is not yet available for 1929, but Tables 26, 27, and 28
show these data for other recent years. . Adjusted figures for North
America and Europe are also shown; in these revised figures the grain
credited in our exports to Canada, but actually in transit to Europe,
is deducted from the exports to North America and added to the
exports to Europe.
Table 26.-Foreign Trade with Each Continent, by Economic Classes
NOTE.-Years 1910–1914 are fiscal years ended June 30; 1921–1928 are calendar years.
Millions of dollars
Exports of United States merchan- General imports

Continent and class dise
—T--------- | - - - - - -- - - -
1910– 1921– 1910– 1921–

1914 1925 | 1926 | 1927 | 1928 1914 : 1925 1926 1927 | 1928
-- - -- - - -
Total--------- - 2, 130 4, 310 || 4,712 | 4,759 5,030 | 1,689 || 3,450 4,431 || 4, 185 4,091
Crude materials--- - 713 1, 189 | 1,261 | 1, 193 1,293 595 | 1,293 | 1,792 | 1,601 | 1,467
Foodstuffs-------- -, 421 1,021 838 884 760 398 832 958 956 956
Semimanufactures---- -| 342 535 656 700 716 307 606 805 || 750 763
Finished manufactures--------- 654 1,565 1,957 1,982 2,260 380 720 877 879 906
North America------------ 483 1,029 | 1, 113 | 1, 185 | 1,281 347 911 | 1,012 986 961
Crude materials----- - 86 166 184 180 179 114 220 224 208 193
Foodstuffs---------- - 86 241 - 220 267 238 157 412 385 399 360
Semimanufactures---- - 7 123 156 158 170 46 149 190 171 176
Finished manufactures - 241 500 554 580 675 30 131 212 208 231
South America 121 294 441 436 41; 207 421 568 519 569
Crude materials--- 3 : 8 16 6 3 | 79 131 157 165 175
Foodstuffs ------ 13 26 43 35 38 : 90 200 317 278 304
Semimanufactures 22 46 68 77 72 27 78 89 71 85
Finished manufactures--------- 83 214 314 317 365 2 5 4 5 5
Burope------------------- 1, 334 2,279 2,281 2, 280 2, 342 836 | 1,049 1,286 1,276 1,249
Crude IIlaterials--- - 595 873 876 803 229 240 307 281 261
Foodstuffs---------- - || 300 696 513 524 423 101 107 130 134 137
Semimanufactures.... - || 230 264 300 346 348 196 261 361 339 332
Finished manufactures.-------- 209 446 591 607 684 309 44.1 : 488 522 581
37
Table 26.-Foreign Trade with Each Continent by Economic Classes—Contd
Millions of dollars
Exports of United States marchan

Continent and class dise General imports
l - —i- - - T---- --
1910– i 1921– - 1910– 1921– t
1914 |
1925 1926 1927 1928 1014 1925 1926 : 1027 | 1928
-
-
| - --- - -
Asia and Oceania---------

Crude materials-------- -
168
27
888
135
|| 778
176
752
200
| 88s
219
278
151
997 | 1,469 | 1,811
655 | 1,049 899
| 1,222
792
Foodstuffs-------- - 18 51 54 50 55 41 95 109 125 137
Semimanufactures--- 17 96 124 111 119 37 i 105 140 145 144
Finished manufactur 106 356 421 392 440 47 142 171 142 150
08--------- 25 70 101 107 116 23 71 96 93 90
Crude materials- 2 6 9 : 4 4 22 46 56 48 46
Foodstuffs-------- - 4 8 8 8 7 (1 11 16 20 18
Semimanufactures--- -| 3 6 8 8 8 (1 13 24 23 25
Finished manufactures--------- 16 49 76 86 97 | (1 1 1 2 2
Adjusted exports to— : i -
North America—
Total------------------- 476 957 | 1,057 1,071 1, 179
Foodstuffs-------------- 79 168 164 153 155
Europe—
Total.------------------- 1, 341 2, 352 2, 337 2, 394 | 2, 425
Foodstuffs-------------- 3 768 Ö69 638 605
1 Less than $500,000.
Finished manufactures are the most important group in our exports

to each of the continents except Europe, the proportions which such
commodities formed of the total in 1928 ranging from 45 per cent in
the case of Asia to 81 per cent for Oceania. For each continent, the
proportion of finished manufactures in 1928 was larger than in 1927,
and as compared with the pre-war period (1910–1914) the increase in
Europe's share was particularly pronounced. In 1928 the crude mate
rial group about four-fifths of which was cotton, formed the largest
share of our exports to Europe, amounting to 36.6 per cent (adjusted
basis); finished manufactures made up 28.2 per cent, while foodstuffs,
including grain shipments through Canada, amounted to 20.8 per cent.
Table 27.-Per Cent Each Class Makes of Total Trade for Each Continent
North America i South America Europe Asia and Oceania
Class Hºlº | - 1910– 1921 ſ wo- 1921 1910–1921 -
ºf ºš 1928 1.4 || 10.5 | 1928 gº É;|1928|*|†: 1928

- - - : - — —- -l—
l | i
.0 100.0 |1}} 100.9 100.0 100.0 100.0 100.0 100.9 |100.0 100.0 100.0
.8 || 16.1 14.2 2.2 2.7 .. 7
.8 || 23.4 18.9 10.9 || 8.8 7.9
|||22.5
44.6 |38.3
30.5
||37.9
| 18.0
|| 16.1
10.8 |
21.2
7. 9
26.3
6.6
6 || 11.9 13.5 18, 1 || 15.7 15.Q 17.2 11.6 || 29.2
14.8 || 10.2 15, 1 || 14.2
.8 || 48.6 | 53.5 | 68.7 | 72.9 76.3 | 15.7 | 19.6 62.9 55.8 52.9
.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 |100.0 100.0 100.0
.9 || 24.2 20, 1 || 38, 1 31.2 30.8
. . 1 45.2 37.5 47.8 #! #;
#|#3 20.9
12.1 ! 10.2 | 11.0
54.7, 65.7 | 64.8
14.7 9.5 11.2
.4 | 16.3 | 18.4 || 13.0 | 18.5 | 15.0 23.5 24.9 26.6 || 13.5 ! 10.5 11.8
.7 || 14.3 24.1 | 1.1 1.3 - ... 8 so a 0 41.5 17. 1 14.2 l| 12.3
Adjusted percentages of ex Adjusted percentages of ex

ports to North America ports to Europe
1010–1914 || 1921–1925 1928 1910–1914 | 1921–1025 1928
100.0 100.0 100.0 100.0 100.0

17.3 15.2 44.4 . 37.1 36.6
17.6 13.2 | 22.9, 32.7 20.8
12.8 14.4 | 7 || | || ? 14.3
52.3 57.2 | 15.6 19.0 28.2
38
On account of its large population and its relatively high per capita
purchasing power, Europe takes the largest share of each economic
class of merchandise exported from the United States; in 1928 it
accounted for 69 per cent of our exports of crude materials, 48% per
cent of the semimanufactures, 30.3 per cent of the finished manufac
tures, and 66% per cent (adjusted basis) of the total foodstuffs exports.
Europe's share in each class of exports, however, was smaller in 1928
than prior to the war. Marked increases are shown in the proportion
of our exports of crude materials, foodstuffs, and semimanufactures
taken by Asia and Oceania and of semimanufactures and advanced
manufactures going to South America and Africa.
Table 28.-Per Cent Each Continent Takes or Furnishes of Total Trade in Each
Economic Class
l
- - Fini
Crude materials Foodstuffs semºniae Finºnu.
Continent - - | -
1910– 1921– 1910– 1921– 1910– 1921– 1910–11921–

10.1 ºš 1928 ºf | 1925 1928 ºf ºs 1928 1914|1925 1928
Exports--------------- 100.0 100.0 100.0 100.0 100. 0 100.0 |100 0 100.0 (100.0 100.0 100. 0 || 100.0
North America-- 12. 1 || 14. 0 || 13.8 || 20.4 |123.5 || 31.3 20.6 | 22.9 || 23.7 36.8 || 32.0 29.8
.4 .. 7 ...
3. 1 2.5 5.0 6.4 8.6 10.0 | 12.7 13.7 16.1
83.4 | 73.5 | 68. 7 || 71. 1 || 68. 1 || 55.6 67.3 49.3 || 48.5 32.0 28.5 30.3
Asia and Oceania 3. 8 || 11.4 | 16.9 | 4.3 5.0 | 7.2 5.0 | 18.0 | 16.6 | 16.2 22.7 19.5
Africa .. 3 .. 5 .. 3 1.0 .. 8 .9 .. 7 1. 1 º 2.4 3. 1 4.3
Imports--- 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 |100.0 100.0 100.0 100.0
North America.-- 19.2 || 17.0 | 13.2 | 39.4 || 49.5 || 37.7 | 15. 1 || 24.5 || 23.1 7. 7 || 18. 1 25.5
South America--- 13. 3 || 10.2 | 12. 0 | 24.9 || 24.8 || 31.8 || 8, 7 | 12.9 || 11.2 .. 6 .. 7 .5
Europe--------------------- 38.6 | 18.6 || 17.8 | 25.4 | 12.9 || 14.3 || 64.0 |43. 1 || 43.6 || 79.5 || 61.2 57.2
Asia and Oceania---------- 25, 4 || 50.7 | 54.0 | 10.2 || 11.4 | 14.3 | 12, 1 || 17.3 | 18.8 12. 1 || 19.7 | 16.5
Africa---------------------- 3.6 || 3.6 3. 1 . 1 1. 3 | 1.8 . 1 2.2 || 3.3 ... 1 .2 .2
|
! Using the adjusted exports shown at the bottom of Table 26, these proportions are as follows: North
America, 1910–1914, 18.8 per cent; 1921–1925, 16.5 per cent; 1928, 20.4 per cent; Europe, 1910–1914, 72.8 per
cent; 1921–1925, 75.2 per cent; 1928, 66.5 per cent. -
The leading group of imports from the American Continents in

1928 was foodstuffs, including such commodities as sugar, tropical
fruits, cocoa, and coffee, the ratio of the total trade with North
America being 37% per cent and for South America 53% per cent.
Crude materials and semimanufactures also made up a large propor
tion of our imports from those continents—crude petroleum, copper,
hides and skins, raw wool, and wood pulp constituting a large part of
these groups. Crude materials dominated our imports from Asia
and Oceania (65 per cent), While finished manufactures constituted
a larger proportion (41.5 per cent) than any other group in imports
from Europe. Finished manufactures were also relatively important
in imports from North America, a leading article being newsprint
imported from northern North America. Ratios in import trade
from Africa Were as follows: 51 per cent crude materials, 20 per cent
foodstuffs, and 28 per cent semimanufactures. Of the totals for each
economic class of imports, 69.5 per cent of the foodstuffs was fur
nished by the two Americas, 54 per cent of the crude materials by
Asia and Oceania, 57.2 per cent of the finished manufactures and 43.6
per cent of the semimanufactures by Europe.
Exports by Continents and Countries.
Exports to northern North America during 1929 amounted to
$962,000,000, an increase of 4 per cent over 1928. The trade with
Newfoundland and Labrador, although relatively small—$12,500,
000-showed a 36 per cent increase. Exports to Canada, our leading
39
market, totaled $948,500,000, exceeding by $100,000,000 the exports

to the United Kingdom, our second largest market. However, if an
adjustment is made for the large amount of grain exported to Canada
but actually destined for the United Kingdom and other European
countries, the difference is materially less. Shipments of United
States grain to Europe through Canada in 1929 were valued at
$49,400,000, as compared with $82,800,000 in 1928; they were the
smallest since 1923. Most of the growth in trade with Canada
resulted from larger exports of petroleum and its products, electrical
machinery, copper, coal, and heavy iron and steel; the value of auto
motive products and agricultural implements and machinery
decreased.
[Millions and tenths of millions of dollars)
| |
1910– 1921–
1914 | 1925 1913 || 1922 || 1923 || 1924 1925 | 1926 1927 1928 1929
: i - ---
Exports to Canada: |
Total, unrevised.---|315.0 619.0 601.2 576. 7 || 651.9 624.0 648.8 | 738.6 836.5 914.7 948.5
Exports of grains---| 7.1 | 72.4 6. 5 || 78.5 | 40.6 || 105, 6 || 57.3 | 56.2 | 113.0 | 82.8 49.4.
Total revised.------- 307.9 || 546, 6 || 594.7 || 498.2 | 611. 3 || 518.4 || 591. 5 | 682. 3 || 722.6 || 831. 9 || 890. 1
|
Exports to Latin North America totaled $434,000,000, an increase

of 9 per cent over 1928, which was in contrast with declines for the
three immediately preceding years. Mexico increased its purchases
by 16 per cent, Central America by 10% per cent, and Netherland
West Indies by 77 per cent. Exports to Cuba were slightly larger
than in 1928, although they continued much smaller than during the
years 1923 to 1927. Sales of electrical machinery and appliances in
both Mexico and Cuba showed marked gains.
Total exports to South America aggregated $539,000,000 as com
pared with $481,000,000 in 1928—the result of pronounced increases
in sales to all South American countries except Colombia, the Guianas,
and Ecuador. Exports to Argentina, our largest South American
market, amounted to $210,000,000, or 17% per cent more than in
1928, agricultural implements, automobiles (including parts), electrical
machinery and appliances, and gasoline being responsible for much
of the gain. The value of exports to Chile increased by 38 per cent,
to Venezuela 19% per cent, and to Brazil 9 per cent; automotive prod
ucts and electrical machinery were leading groups showing greater
sales in these countries.
Exports to Europe amounted to $2,341,000,000, or $34,000,000 less
than in 1928. There were declines in sales to Germany, Netherlands,
Finland, Italy, and Spain, a large part of these decreases being attrib
utable to smaller shipments of cotton or grain. The value of exports
of cotton to Europe was $132,000,000 less than in 1928, and of wheat
$4,000,000 less. Large relative increases were shown in exports to
Norway, Denmark, France, Czechoslovakia, Soviet Russia in Europe,
and Portugal. The values of exports of gasoline, refined copper, and
automobiles to France were substantially greater than the year before,
and these articles also showed increases in the trade with many other
countries. Sales of electrical apparatus and agricultural implements
to Soviet Russia in Europe were about two and three times greater,
respectively, while those of raw cotton were considerably less than
in 1928. There were larger exports of meat products, grain, flour,
40
oranges, leaf tobacco, refined copper, and automobiles to the United

Kingdom, but shipments of raw cotton to that country declined by
$52,000,000.
Exports to Asia amounted to $643,000,000, or about 2 per cent less
than in 1928. Most of the leading countries increased their pur
chases, the gains being particularly pronounced for British Malaya,
Netherland East Indies, Philippine Islands, and Turkey. Exports to
Japan and to China (including Hong Kong and Kwantung), however,
declined by about 10 per cent and 6 per cent, respectively, resulting
in the Smaller total for Asia as a whole. Japan took less raw cotton,
kerosene, and refined copper, but a larger quantity of heavy iron and
steel and automotive products. The leading commodities showing
decreased sales to China (including Hong Kong and Kwantung)
include leaf tobacco, cigarettes, and kerosene.
Foreign sales in Oceania totaled $192,000,000, or 6.7 per cent more
than in 1928—a notable increase in view of declines in the two pre
ceding years. A considerable part of the increase was due to larger
purchases by Australia and New Zealand of gasoline, lubricating oil,
heavy iron and steel, motor trucks, and electrical machinery. Exports
of passenger automobiles and agricultural implements to Australia
showed marked declines.
Exports to Africa, amounting to $131,000,000, increased by $14,
000,000, or 12 per cent. Approximately one-half of this trade is with
British South Africa, which took our goods to a value of $63,700,000,
or 8 per cent more than in 1928. Exports to Algeria and Tunisia
showed a gain of 24 per cent and to Egypt 27 per cent. The increases
resulted from larger purchases of heavy iron and steel, electrical
ºry and appliances, agricultural implements, and other finished
articles.
Tables 30 and 31 and Chart XIII show both exports and imports
by leading countries for the period 1921–1925 and for several recent
years.
Table 29,-Merchandise Exports to and Imports from Leading Countries

[Values in millions and tenths of millions of dollars]
Exports (including reexports) General imports

Country ºr ſº. Twº- 1921
1925 1926 1927 1928 1929 1925 1926 || 1927 | 1928 ; 1929
NORTH AMERICA
836. 5 | 914. 7 || 948. 5 || 393.8 475.9 || 475.0 || 489.3 || 504.3
155.4 || 127.9 | 128.9 || 299.6 || 250, 6 256.8 202.8 || 207.4
109. 1 | 115. 7 | 134.0 | 1.47. 5 | 169.3 || 137.8 134. 5 || 117.7
163, 5 178, 9 | 210.3 83.3 || 88.1 97.2 | 99.4 || 117.6

88.7 | 100. 1 || 108.8 152.2 235.3 203.0 220.7 207.7
37.9 40.4 55.8 || 77.2 81.4 || 61.9 || 75.2 || 102.0
48. 7 | 58.6 49.0 || 49.4 90.2 || 87.8 || 94.6 || 103.5
34.7 37.9 || 45.3 || 14.9 || 23.3 || 28.6 || 38.9 || 51.2
116.2 || 111.8 || 114.9 58.3 || 77.8 || 72.2 || 75. 1 || 74.0

228.8 || 240.7 265. 7 || 147.9 || 152.0 | 167.8 || 158.7 171.5
481.7 467.3 || 410, 3 || 132. 5 || 198.5 | 200, 6 222. 1 || 254. 7
131.7 172. 1 || 154.0 | 79.1 || 102.5 ! 109.0 | 101.7 | 117.1
148.2 142.3 | 128.3 | 70. 6 || 101.9 87.2 83.6 || 83.9

64. 1 || 72.5 # 81.5 || 4.6 || 13.5 | 12. 1 || 13.9 || 21.5
73.8 86.6 || 82. 1 | 29.6 || 41.4 || 34.4 || 35.0 || 36.1
44. 7 || 57.3 58.7 | 34.1 || 44.0 || 47.9 || 46. 1 || 53.0
840, i | 84.3 | 843.0 | 355.8 || 383.3 || 357. § 31.5 | 3.3
* On the assumption that all grain credited as exported to Canada is actually destined for Europe, the
exports to Canada would be as follows (in millions of dollars): 1910–1914, 307.9; 1921–1925, 546.6; 1926,
682.3; 1927, 722.6; 1928, 831.9; 1929, 899.1.
41
Table 29,-Merchandise Exports to and Imports from Leading Countries—Con.

[Values in millions and tenths of Inillions of dollars)
Exports (including reexports) General imports
Country
1921- 1927 1921– 1927
tº 1920 1928 - 1929 jº, 1926 : 1928 1929
i
- --
--
ASIA
|
British India - 38.2 50.0 63.3 53.7 55.4 100.0 150.0 - 131.0 148.0 149.3
British Malaya 8.0 13. 6 13. 6 11. 8 14. 6 153.2 383.8 277.8 204.4 239.2
China, Hong Kong, and
_| 128. 7 129. 5 , 109.0 158.0 !?
tung
Japan------------------- 241.9 200.8 257.6
165.9 155.7 | 10.7
288.2 259. 1 || 335.4 400.7 , 402. 1 iſ 5 $2.7
384.5 431.9
Netherland East Indies 17.2 27. 6 32.1 34.4 45.7 55.0 119. 6 | 91.4 || 86.1 || 82.3
Philippine Islands - 51.9 68.6 69.5 79.8 85.6 80.1
l
103.8 º 115. 6 125.8
OCEANLA
Australia 111. 3
|
168.7 | 150. 1 141.4 150. 1 37.5 45.7 38. 6 * 31.9
AFRICA
British South Africa - º31.4 51. 1 , 52 59. 1 63.7 9.3 .

8.7 w? 9.7
Table 30.-Percentage Distribution and Per Cent Changes by Leading Countries

|
Per cent of total Per cent of total , Per cent change in Per cent change in
exports imports - 1929 exports from— 1929 imports from—
Country H --T—
1910– 1921- 1929 | 1910– 1921– 1910- . 1921 1028 || 1010– 1921–
1914, 1925 1914 1925 1914 1925
1928
1914 1925
north Axier ICA | t
. 1" 6.9 11.4 1 +201.1 +53. ; +3.

7.2 8.7 +104.4 —28.9 +.
- 4. 2 4.3
+1823, -85 H5.
I
South AMERICA i i :
-
2.2 2.7. 4.0 1.9| 2.4 +345.8 +79. 7 -i-17. 5-H257.6

ii
.6
is .
.7, 1.1
. ; 2.2.
1.4
;; +245.5 +81. 5 +8.7 --87.3
+85. 1 +38.2 +345.9
EUROPE
.3
.2
. 6,
.3, .9,
. 9,
|
.7|
.5
1.4
. 3.
-
i +302.1
+749.8
+910.4
+89. 4.—16.4+766.6
+211 .0+19.5+461.5 +244.4
2.5 2.5 2.2, 2.4 1. 7. +116.2 .2 +2.7 5 +26.9

6.4| 6.0; 5. 1 7.7| 4.3. +91.3 .2 +10.4 ;: 8
ºſ
. 11–12.2
14.0||
3.0|
4.8
1.1]
1.2
8.
4. 7.8
2.9,
3.1; 2.4, 2. 1
.7| 1.6 1.1
2.0
.. 1
1. 1.6, 1.3 ... 9.
10.4|
3.0 3.8
2.3
i .. —5.0|
.2 —5.8
5. 9-1-12.5 +
.5 +5.2 + *
i; 3
0
0 +
5
9
i:
.5
26.2.
... 9. 1.1 ... 6 1.0
21.4 16.2 16.5 10.3. ; .8 +2.4+45
- * +. 1 +18.2
i 9
- 7.3 ;
|
ASIA
British India----------- .5 .9, 1.1 3.3: 3.2

British Malaya--------
China, Hong Kong,
.1 .2;
i
.3 1. * 4.4. +º: h § ;& º #. §
;1
and Kwantung-------
apan------------------
Netherland East Indies
Philippine Islands-----
OCEANLA
Australia---------------
1.4|
2. 1
.. 1
1.0||
1.8
2.9,
5. 5
.4
1.2|
2.5 2.9
3.0
4.9
1.6
.9.
|
2.3,
5.0
.5
1.2
-7
4.7,
9.7;
1.6
2.
1.1
º
.7 4-287.7 +34.9
#;i
+6.1+150.4
;
74.
. ;: #i
–14.9 +1.1
AFRICA
British South Africa.-- . 6] .. 7 1.2 . 1,
I
.3
+393.8 +103.2 +7. d +292.0 +3.9 +5.2
1 Adjusted figures are as follows: Percent of total exports, 1910–1914, 14.2 per cent; 1021–1925, 12.4 per cent;
1929, 17.2 per cent; increase of orts in 1929 over 1910–1914, 192.0 per cent; over 1921–1925, 64.5 per cent;
over 1928, 8.1 per cent. (See Tjº,
Chart XIII,_FOREIGN TRADE WITH LEADING COUNTRIES'
Øexpor’s nvil LLIONS OF DOLLARS

m/7007's 3OO 4OO 5OO GOO
|--
ºffs.…. UNITED KINGDONM
| 9 || o – I 9 4
I e 2 1 - 1 9.25
| 928
1929
CANADA
| 9 || o – I e i 4
| 9 2 | – || 9 25
1928
i e 29
2OO
Nº Ex1 CO
I e i O - 19 4
| e 2 1 - 1 oz.5
i e 28
I e 29
I e I O - 9 14
| 9 2 1 - 9.25
i e 28
l
I e 29 -
BRITIs H INDIA
19 i o -1 e 14
I e 2 I – I ea 5
| 928
| 929
BRAZIL. BRIT | SH NMALAYA
| 9 || O-I e I 4.
I e 2 I - I e 25
| e 28
| 22d
COLONº Bla NETHERLAND's EAST INDIE's
I e I O - I e i 4.
| 92 I - I e25
I o 26
|
I e 22
PHILIPPINE ISLANDS
I e I O - || 9 || 4
I e 2 I - I e 25
le:2a -
I e 29 -
BELG|UNM cH INA, Hong Kong, KwaNTUNG

19 O - to 14. -
I
| 9 2 I - I e 25 l
lo 28
1 92.9
NETHERLANDS
19 O - I e 14
I e 2 1 - 1925
| 928
I o 29
FRANCE AUSTRALIA
I e I O - I e I 4.
I e 2 I - I e25
1 < 28
I e 29
Note.—Distance between arrows represents grain exports through Canada to Europe.

43
Tmports by Geographic Areas.

Imports from northern North America were valued at $515,000,000
in 1929. Canada ranks far ahead of any other country in our import
trade. Our purchases from Canada amounted to $504,300,000, an
increase of 3.7 per cent, which mainly resulted from larger imports of
newsprint and unrefined copper. Imports from Newfoundland and
Labrador, totaling $10,400,000, showed a further growth, owing to
larger purchases of newsprint.
An increase of $6,000,000 in imports from Latin North America,
the total of which was $467,000,000, resulted from larger purchases
from Cuba and Netherland West Indies. There was entered at
American ports from Cuba in 1929 about three-tenths more sugar
than in 1928; however, the value increased by only $520,000, owing
to a decline in the average import price. Gasoline and topped oils,
refined from Venezuelan petroleum, continued to be imported in
larger quantities from the Netherland West Indies, causing the
imports from those islands to reach a value of $64,600,000. Imports
from Mexico showed a further decline, being $7,000,000 less than in
1928; although our purchases of copper and sisal were larger in value,
the increase did not offset the decrease in the value of imports of
petroleum, coffee, and guayule.
Imports from South America reached a total of $640,000,000, an
increase of $70,000,000, or 12 per cent, over 1928. Brazil was the
only leading country from which imports declined in value; the total
was $208,000,000, as compared with $221,000,000 in 1928. The
decrease resulted mainly from a slight reduction in our purchases of
Brazilian coffee and its lower average unit price. Imports from
other leading South American countries showed very substantial
gains. Larger purchases of ſlaxseed and wool from Argentina caused
total imports from that country to increase by 18 per cent, despite
a considerable decline in hides and skins. Larger quantities of
copper (at a higher average unit value) imported from Chile and
Peru, of coffee from Colombia, of crude petroleum from Venezuela,
and of wool and meats from Uruguay resulted in gains ranging from
9 per cent to 59 per cent in total imports from those countries.
Imports from Europe totaled $1,333,000,000, an increase of 6.7
per cent. The most significant increases were shown by France,
Germany, Czechoslovakia, Soviet Russia, Sweden, and Italy. Among
the commodities imported in larger quantities from the European
countries were pearls and semiprecious stones, raw silk, leather gloves
and shoes, leaf tobacco, olive oil, and wood pulp. Imports from the
United Kingdom declined by 5 per cent in value, mainly as a result
of a sharp decrease in crude rubber transshipped from the British
East Indies.
There was an increase of 9% per cent in the value of our purchases
from Asia, the total amounting to $1,280,000,000. Larger quantities
of silk imported from Japan and China (including Hong Kong and
Kwantung), of rubber from British Malaya, and of coconut oil from
the Philippine Islands accounted for the greater part of this increase.
Noteworthy features in the rubber situation during 1929 were smaller
transshipments to the United States via the United Kingdom and
large increases in direct shipments from the Far East. Imports
from British Malaya were 896,000,000 pounds in 1929, as compared
44
with 559,000,000 pounds in 1928; the values totaled $169,000,000 and

$138,000,000, respectively. Imports of rubber from the Netherland
East Indies increased slightly in quantity but declined by $8,200,000
in value, owing to the lower average unit price. Total imports from
Japan were $432,000,000, an increase of $47,000,000 over 1928.
Smaller purchases of tobacco and figs from Turkey caused a marked
decrease in imports from that country.
Imports from Oceania, totaling $57,000,000, showed an increase for
the first time since 1925. The most pronounced gain appeared in .
imports from New Zealand; but our purchases in Australia and the
other islands were also greater. Imports of copra from this area were
substantially larger.
There was an increase of $18,000,000, or 20 per cent, in our imports
from Africa, the total value being $109,000,000. Pronounced increases
were shown for imports of long-staple cotton from Egypt and cocoa
and palm oil from British West Africa; the total trade with these
countries increased by 38 per cent and 35 per cent, respectively.
FOREIGN TRADE OF CONTINENTAL UNITED STATES
The geographic basis of foreign trade statistics of the United States

is the United States customs area which includes continental United
Chart XIV.-FOREIGN TRADE OF CONTINENTAL UNITED STATES WITH ITS

TERRITORIES AND POSSESSIONS
Nø ILLIONS OF DOLLARs
6OO
5OO *
| |! -/70or’s
4.OO l
| |
|
|
|
l
I
| i
iA
I
AV .
3oo - \
| JZ
| / |
We
-
-
-
2 Oc :
/ r -
zoº’ Z —I
-
: |
-
|
l z
*|
| /***~!-,” i
| OO +zº.~i=-r- |- :
------ <Moor's i : |
--T_L | |
---"
| i
I
|
| |
| |
l
O . l I L l I l
1903 'O4 OE 'OG '07 'o6 O2 'Io 'll '12 13 14 15 '16 '17 '18 || '19 '20 °21 22 °23 '24 25 '26 '27 28 lºzs
Fisca L YEARS cal-Erw DAR YEAR's *** c ºr
States, Alaska, Hawaii, and Porto Rico; the unadjusted statistics

show the foreign trade of this area with all foreign countries, including
the Philippine and Virgin Islands. Foreign trade totals of practically
all other nations, however, include the trade with foreign countries
as well as with their own outlying possessions. In Table 32, United
States statistics have been adjusted to show the total foreign trade of
continental United States and to show separately the foreign trade
with foreign countries and with the Territories and possessions.
45
This was done by deducting from the totals for the customs area the
trade of Alaska, Hawaii, and Porto Rico with foreign countries and
by adding to the result thus obtained shipments between continental
United States and these Territories. A revision of the statistics in
this manner shows for 1929 exports of $5,426,000,000 and imports of
$4,626,000,000 for continental United States as compared with exports
of $5,241,000,000 and imports of $4,400,000,000 for the customs area.
Table 31-Trade of Continental United States with Foreign Countries and
Outlying Territories and Possessions
NOTE.-Outlying Territories and possessions are Alaska, Hawaii, Porto Rico, Virgin Islands, Samoa,
§:::::::: the Philippines. Data are for years ended June 30, through 1918; thereafter for years ended
ecember 31.
[Values in thousands of dollars]
| Exports (including reexports) : General imports
- i - - | From
Year or yearly average - To United F roin ---
- : - - r- | United
| Total º ãº
sessi
Total foreign States Ter
I nS countries ritories and
possessions, possessions
1906-1910---------------------- 1,820, 286 1,761,625 67,661 1,410,320 1,324,504 85, 734

1911-1015- --- 2,441,254 2, 337, 501 103,664 1,811, 234 1, 681, 207 130,027
1915–1920 1 ---| 6,656, 126 6, 452, 539 203, 587 3,596,084, 3,274,496 321,588
1921-1925---------------------- 4, 552,455 4, 335, 341 217, 114 3, 650, 280 3,351, 378 298, 902
1,447,258 1,410,420 36,838 1,067,420 1,008, 531 58,889
1, 487, 934 1,449, 840 34,094 1,031,794 972, 663 59,131
1, 551, 657 1,508, 137 43, 520 1, 173,079 1,097, 829 75,250
1,784, 527 | 1,732,860 1, 275, 180 1,207,507 67,682
1,932, | 1,865, 544 1,488, 804 1, 414,055 74,839
1,907, 874 i 1,842, 104 1,264,301 1, 175, 572 88,720
| l
1, 717, 172 1,646,784 1,384, 318 | 1, 294, 882 89, 436

1,804,063 1,720,831 1,638,942 : 1, 530,056 107,986
2,115, 186 2,022,874 i 1,607, 343 1,499,918 107,425
2,278,732 2, 172,434 1, 762,351 1,619, 428 142,923
2,530, 837 2, 420,962 109,875 : 1,000, 427 1, 780, 538 128,889
2, 434,851 : 2,327,087 107, 7 1,980,228 : 1, S65, 197 115,031

2,837, 666 2,735, 597 102,069 1,706, 822 1,640,953 155, 869
4,420, 846 : 4,302, 87 117,973 : 2,362,645 2, 159,598 203,047
6,412,069 6, 250, 649 161,420 2,856,008 i 2,603, 871 252, 137
6,054, 232 5,857, 167 197,065 3, 150, 128 2,854,047 296,081
I
3, 222,793 3, 138,793 84,000 | 1,614,762 1,430, 878 183,884

8,050,270 7,833, 823 225,456 4, 125,976 , 3,821, 142 304, 834
8,439, 474 i 8, 105,660 333,814 || 5,668,942 5, 140, 192 528,750
4, 620, 537 4,427,556 192,981 2, 672,013 2,438,856 233, 157
3,963,077 | 3,780,020 ! 183,057 3,282,206 3,035, 381 246,915
4, 333,730 |
4, 109,344 224, 380 4,010,641 3,607, 607 313,034
4,761,644 | 4,521, 219 240,425 3,832,148 3, 404, 159 337,989
5,083,287 || 4,838, 565 244, 722 || 4,455, 787 4,090,887 364,900
4,091,783 || 4,720,811 261,972 4, 669,318 4,303, 302 366,016
5,056,964 4,785, 482 271, 482 4,421,231 , 4,047, 124 374, 107
5, 311, 007 : 5,038, 693 272,314 || 4, 349, 553 3,951,050 398,503
5,425,966 : 5, 145, 521 280,445 4,625,910 4, 251,331 374, 579
|
1 Period July 1, 1915, to Dec. 31, 1920. * Subject to revision.
Exports to our Territories and possessions have shown a greater

growth since 1922 than exports to foreign countries, the ratios of
increase being 53 #. cent and 36 per cent, respectively. During
1929 exports to the Territories and possessions and to foreign countries
increased by 3 per cent and 2 per cent, respectively, as compared
with 1928. There were increases in exports to each of the larger
outlying areas; the values of exports in 1929 were: To Alaska,
46
$33,000,000; to Hawaii, $83,000,000; to Porto Rico, $76,000,000; and

to the Philippine Islands, $86,000,000. The value of exports to all
outlying Territories and possessions was $280,000,000 in 1929, or 5.2
per cent of the total exports from continental United States.
Imports from the Territories and possessions were 6 per cent less
than in 1928, while those from foreign countries were 7.6 per cent
larger. The value of imports from the Philippine Islands, totaling
$126,000,000, increased by 9 per cent over 1928, resulting from larger
purchases of sugar, manila hemp, and coconut oil. On the other hand,
imports from Alaska, Hawaii, and Porto Rico declined considerably
in value; the totals for 1929 were $63,600,000, $106,300,000, and
$78,100,000, respectively. The declines resulted chiefly from smaller
purchases of salmon in Alaska, the lower price of Hawaiian sugar, and
the purchase of smaller quantities of sugar at a lower average unit
value in Porto Rico. The total value of imports from our Territories
and possessions in 1929 was $375,000,000, or 8 per cent of the total
imports into continental United States; imports from exceeded exports
to these areas by $94,000,000.
Table 32,-Trade of the United States, by Commercial Regions and Countries
(Several small countries are not shown separately, but these are included in the totals)
[Values in millions and tenths of millions of dollars)
Exports Imports
Region and country

%:
1925
1026 1927 | 1928 1929 |%:
1925
| 1926 | 1927 | 1928 1920
| | .
NORTH AMERICA
i
| 747.7 845.3 924.2 981. 5. 296.7| 485. 5 484. 5 500.0|| 515.2

738.6, 836.5 914.7 948, 5. 393.8 475.9 475.0 489.3 504.3
8. o 8.5 9.2 12.5 2.5 9.0 9. 1 10. 1 10.4
428.
135.0.
§ 407.7|
109. 1;
397. 2 433.7|
115.7| 134.0.
514.2
147.5
528. 1
169.3|
501, 1| 460.7| 467. 1
137.8 124.5' 117.7
Central America, tota —l 58.7 75. 1 76.3| 82.1| 90.8 36.4| 48.9 40.4| 45.3| 44.8
British Hondura - 1.9, 2.4 2. 1 1.8 1.9 2.4 2.8 3.7 2.0 3.3
Costa Rica------------ 5.1| 6.3 7.3 8.1 8. 3. 5.1 7.1 6.0 5.6 5.2
Guatemala------------ 7.2, 11.1 10. 6 13.3| 11. 5. 10.0|| 14.5 10.2 9.6 8.5
Honduras------------- 10.3 7.5 8.5 9. 7. 12.8 6.0 8.7 9. 3. 12.3| 12.8
Nicaragua- 5.3 6.3. 7.0 7.4 7.0 5.0 6.0 4.2 5.5 5.7
Panama--- 22.8] 31.9; 34.1| 34.2| 41.1 4.6 5.5 5.4 6.4 5.4
Salvador-------------- 6, iſ 9. § 6, § 7.6 g. i. 3.3| 1.3| i. 5 §2. 3.3
West Indies and Bermu- |
das, total- 239. 5, 218.8' 222.2 199.4| 209.0| 330.4 307.9| 322. 7 290.9 304.7
Bermud - 3. 6 3.3 3. 8 3.5 4.0 1. 1 1. 1 1. 1 .9 .8
Jamaica: -- 8.5 8.4, 8.6 8. 1; 9.1| 6.9 9. 1| 9.7 8.0. 7.5
Trinidad and Tobago- 5, 2 4.9 5.9 4.7 6.7 5.2 8.2 7.5 9.7| 10.8
Other British--------- | 7.0 7.6 7.4 7.2 7.4 2.7 3.9 4.4 2.7 2.9
Qubº-----------------| 181.3| 160 5 155.4 127.9 128.9| 299.6 250. 6. 256.8, 202.8 207.4
Dominican Republic-- 15. 3. 14. 6 18.9| 16. 8 14.2 8. 1 8. 1| 11.0 9.4 8.5
Netherland West In
dies ---------------- 3. 1 4.9 6.4 13. 6. 24.2 4.3| 24.4| 29.9 54.4| 64.6
French West Indies--- 2. 6 2. º 2.7 2. 6 3.4 ... 2 .2 .. 1 .. 2 ... 1
Ilaiti, Republic of.---- 10.9, 10.9; 11.1| 12.7 8.8 1.7 1.4 1.2 1.6 1.4
Virgin Islands of |
United States------- 1.9 1.8 2. 1 2.3 2.3 ... 7 .. 8 1.0 1.2 ... 6
SOUTH AMERICA
3. North coast, total.-----------, 44.0 92.3i 86.3| 99.1| 96, 5, 65.8| 115.2|, 118. 8 135.6] 156.9
Colombia----------------- 25.9| 49.3| 48.7. 58, 6| 49.0| 49.4| 90.2 87.8 94.6| 103.5
Guiana— |
British---------------- l 2. 1 1.6 1.5 1. 3 1.1 ... 7 1.2 1.0 .9 .8
Surinam--
French---- -'
1.0
.5
1.6
... 2
1.2
.. 1
1.0
... 2
.9
.. 2
.. 7
... 2
.4
.1
1.4
(?)
1. 1
... 1
1.2
... 1
Venezuela----------------- | 14. G| 39.7| 34.7| 37.0| 45.3| 1.4.0] 23.3| 28.6, 38.9, 51.2
to
t ºports not adjusted for grain shipments through Canada to Europe (see Tables 22 and 30 for adjusted
als).
* Less than $50,000.
47
Table 32,-Trade of the United States, by Commercial Regions and Countries—

Continued
[Values in millions and tenths of millions of dollars]
Exports . Imports
Region and country i
|
1921 1027 | 1928 1929 'º.
| 1925 j : 1926 1027
1929
| -
SOUTH AMERICA—continued
278.7 808 & 348.8 231.4 342 s. 312.1 344. 5
117.6
163, 5, 178.0 210.3 83.3 88.1| 97.2
207.7
i§ 88.7
1. 3|
25, 1|
100. 1
1.4
26.0
|
108.8
1.5
28.2,
152.2
.7
14.8
l
235.3| 203.0, 220.
º.5 . 9, . . .
10. 9,
-
11.7
... 5
18.7
Latin America (Groups

2, 3, 4, 5)--------------
EUROPE
:
872. 3.
73.2
4.9|
37.9|
5. 5.
24.9;
845.9| 878.0
75.3
5.0
40.4
6.6
23. 4,
-
94.0 104.1. 110.3
6. 0
55.8
6. 1
26.2
978.0
1.1|
77.2
6.9.
10.0
i
81.4|
6.8
21.
3.
8,
935.6 1,094. 01. 019.2 1,030.

87.4 101.5
-
61.9
5.2
20. . 1
2.
|
.. 2
sh. -
138.4
.4
102.0
5.8
30.2
108.9
6, Northwestern and Central

1 88
1,984. 51,976.4 1,975.0.1,942.0, 885.0 1,070.2 1,050. 91,054.51, 106.0
2 2.9,
-
4.4 ! ...Q. , 5.3, 4, 1, º
-9.4 0.6|
10.6 12. 1 12.3
gº;
3.0.
11;7.42 111.5.3'$ 114.6. 9.1, § 3;
17. 4.
7.8
28.3
22
31.7
74. 0
46. 1
58.6, 47.2 51.4. 6.0 5.5, 4.1 4.6
264.0. 228.8, 240. 7 265.7, 147.9 152.0, 167.8 171.5
481.7 467.3 410. 3. 132 5, 198.5' 200.5 254. 7
1.8 2. 7 #; .. 6 . () .9
10. 9, 13. 5. 14. 4 3 1. 3 1. 5, 1.6
148. 2: 142. 3 128. 3, 70. 6 101.9, 87.2
23.4. 21. 1 23.6, 18.5 25, 1' 22.2
533 44. 7, 57.3 58.7 34.1 44.0. 47.9
10, 1} , 12.2 12.5, 38.8 42.0 35.9
840. 1, 847.3 818.0) 355.8, 383.2 357. 9
| -
92.0, 109.5 116.1' 17.7 34.9, 31.1 -
1
j
16.5;
iſ
18.7
.
14.9
.7.5,. .
9.1.
.8.7; -1
Lithuania------------
1.Q.
2.
1.1
. .3
2. . 3,
2
2.;
.. 3
6.9,
.9
4.5
. 3,
Poland and Danzig
Soviet Russia in Europe-- § : i1 9. ;
61.1, 72.5, 81.5
I
15.9, 16.4,
:
2.4
+0
4. Il
13.5
4, 8
12.1.
º :
SouthW estern total 268.
219 was 9, 29.4 is 1 is 149.8
18
º
131.7i
.7
162. 1
1.0
154.0.
2.5
79.1
1.6
102.5, 100.0
1.8 41
10. 7| 12.8; 15. 1| 3.9 .. 6 #:
37
17
i 73.8
25.9
.5
150
86.
...
13. º(
i82. 1.
26.5 - 30.2
. 1. lī
16.
29. 6
31.6
1.0
22.3,
41.4'
29.6
.1.3;
16.9
31.4
44.8
, 9.
20.6 17.
1.1 8, 1.3 .2 .2 .2
4.9 9.4| 9.8 3 1. 1, . G|
Turkey in Europe -------
Yugoslavia and Albania.-- ; i 3.4
1.0
()
1.8
()
1.3
|
7.4
.5
9.0
1.2
i
12.4
1.0
ASIA AND OCEANIA
6.
... . .15.5:. | |
7.5
. 6,
- 11.9,
.. 5 .6'
21.3
2.2
26.2,
2.9,
26.9
3.1;
Iraq, Arabia, etc. ºff ºff ºf #5, #1 #4
Palestine and Syria
:: : 3.6
1.6:
...
4.6
1. 5.
. ..
* Exports not adjusted for grain shipments through Canada to Europe (see Tables 22 and 30 for adjusted
totals).
5.0
2. 7|
. §§
2.3
4.8
...
29
8.4
}}
4.2
7.5
}.}
*1925 only.
"Turkey in Europe is included in Asia beginning 1928.
102664–30 6
48
Table 32,-Trade of the United States, by Commercial Regions and Countries—

Continued
[Values in millions and tenths of millions of dollars)
Exports Imports
l
Region and country 1921 1921

1925 1926 | 1927 - 1928 1929 | 1925 1926 1927 | 1928 || 1929
--- - - - - –––.
ASIA AND OCEANIA—Continued | |

|
11. Southern and southeastern : - |
Asia, total.--------------- : 119. 1, 186. 8 184. 7, 187.0, 209.9 425.0, 815.2. 657.9| 586.1 629.6
British India- 38.2 50.0 63. 3. 53.7. 55.4! 109.0 150.9; 131.0|| 148.9 149.3
British Malaya- 8.0 13. 6, 13. 6' 11.8 14.6' 153.2 383.8. 277.8. 204.4 239.2
1. 5 2.9. 2.7 2. 7 2.8 27.1| 55.8 40.8] 30.7| 32.4
In 17.2| 27. 6. 32.1 34.4' 45.7 55.0. 119, 6 91.4 86. I 82.3
French Indo-China 1. 1 2.2 1.4 1. 7 2.5 ... 2 .2 .1 (2) (2)
Philippine Islands- 51.9| 68.6 69.5 79.8, 85.6 80.1| 103.8, 116.0 115.6 125.8
Siam---------------------- 1.2 1.9, 1.9, 2.6 3.2 .. 3 .6 .. 6 .. 3 .5
i | -
12. Eastern Asia, total---------

China-----------
371.7
104. 2,
391. 7, 867.
110.2, 83. 5|
: 455.6;
137.7|
418.
124.
d4. 496.6
142.0
559. 3;
143. 2.
572.0 541.1|
151. 7| 140. Q
615.6
166.2
Hong Kong- 17.8 12.8, 18, 9, 22.0. 19.6; 15.9 11.3| 14.8 13. 6, 11.7
Kwantung--
Japan---------
6, 7, '6.5 &7 G. 3.
241. 9, 260.8 257.g. 288. 2.
ii. ;2.7|
259. 1| 335, 4|
3.5
400, 7
2.7| 3.0;
402. 1 384. 5;
4.8
431.9
Soviet Russia in 1. 1, 1.4 -
1.6, -
3.2 . 5' .. 6 ... 7 . 1, 1.0
|
13. Oceania, total-------------- 141. 4 212. ſ 193.7| 180.0; 192.0. 54.0; 68.4 54.5, 53. 3. 56.6
Australia---- 111. 3 168. 7, 159. 1 || 1:41.4|| 150. 1 37.5, 45.7| 38.6 31.6; 31.9
New Zealand- 28. 2' 41.6, 32.5 35.8 39. 5 13. § 18. § 12.7| 19. 2, 20.9
Other Oceania------------ 2.0, 24, 21 2.8 2.5 2.6 3.8 3.2 2.7 3.8
I
Far East (Groups 11, 12,

19)-------------------- 632.2 771. 1. 745.8 822.6 819.9| 975. 61,442.81,284.41, 180.61,301.7
AFRICA | |
- :
| -
14. Mediterranean, total.---- ---' 20. : 23. 9. 25, 1: 27. s 33.4, 36.2 39.4| 89.3 35. § 46.5
Algeria and Tunisia | “.3 .. .; ;; ;; ;; ;; ;; ;; ; ;
Egypt.------- | 8.2 10.2 11. 3. 11. 1, 14.0 33.5 35.2, 33.3 28.7, 39.7
Morocco.-- - 2.4 2. 3. 3. 3; 3.7 5. 0 .4 ... 5 .. 7 1.1; 1.8
Spanish Africa: ; : -
Canary Islands-------- 2. 1. -
3. s 2. 3.
-
3.3 2.8 2 ... 5 ... 7 .8
l
... 5
15. Other Africa.--------------- 48.9, 77.4, 81.9 88. 8. 97. 1 35.3| 57.0 53.9| 54.6, 62. 1
Belgian Congo------------ .. 5 1.2 .7. - 8. 1.4. 9 1.7| 16.0 15.7; 11.6
British Africa— | - : i
W 7.8 9. 9. 13.8 13. 5 12. 4, 12. § 19.8, 23.9, 22.2, 30.0

31. 4. 51. 1 52.5, 59, 1 63.7. 9.3 19.8 8.7 9.2 9.7
2. 3. 4. 0 4.8 4.9 5.4, 1.8 2.3 1. 6 2.8 3.1
. 1 .. 3 .4 .. 3 .7 .. 2 .3 .. 1 .2 .3
$ 2.4 4.1. 2.9 3.4 4.8 5. 8 1.2 1.6 1.2. 2.5
-
4.7. ---
i
6. 5
--
| 6.0
— -
0.4
- -
8. s 9. 6 11.7 1.• 5. 3. 3. l
4.1
* Less than $50,000.

& 4-year average, 1922–1925.
49
Table 33.-Percentage Distribution and Per Cent Change in the Foreign Trade
by Commercial Regions and Principal Countries
Per cent of Per cent of Per cent change in Per cent change in
total exports | total imports 1929 exports from— 1929 imports from—
Region and country ioio-ho | Toº Hoo. TT - . - - -- ------ - - -
1910–1921– 1910–1921– 1910– 1921– 1910– 1921–

1914 | 1925 º ióñº;1929 ſº ſº; 1928 º ſº; 1928
NORTH AMERICA -
Northern North America.----| 14.8] 14.3.18.3| 7.0 11.5/11.7 --200. 6 +53.3 +4.0 +334.7| +29.9 +3.0
d 14.5 14. 1|18.1| 6.9, 11.411.5 +201. 1 +53. * +3. : +230.2 -H28. 1 +3.0
.2 . 2, .2 . . 1 . 2 +161.7 -H52.9-H35.8 +718.5|+311.8 +2.9

.4| 10.
.5l 3. 3. 2.6 4.
i
8.3| 13. 5, 14.9|10. 6; +139. 3 —2.4 +9.2
4.3 2.7 -H152.3 —8.5|-|-15.8
+104.3 —9.2
+67.0 —20.2
+1.4
–5.5
.7| 1.3; 1.7| 1. 1.1| 1.0 +141. 6 +54.5+10.5 +157.8 +23. 1 — 1.3
9| 4.1| 2.5| 7. 8.7i 4.7| +104.4 —28.9 +. 8 +69.9 –30.8 +2.3
SOUTH AMERICA -
North Coast South America- .6| 1.0 1.8| 1.3 1.9, 3.6 +637. 9-1-119.4 –2.6 +595.9|+138. 3|+15.7
Colombia-------------- . 3] . 6. .9 -7 1.4| 2.4 +749.8 +89. 4– 6.4 +766. G|+109.7| +9.4
Venezuela-------------- .2 .3' .9 .5' .4| 1.2 +910.4 +211. ºf{} 5 +-461.5|+244. 4|+31.7
East Coast South America---| 3.9 4.4 6.7 8.8, 7.3| 7.8 +311.8 +80.3+13.8 +132.3 +37.0. H-3, 6
Argentina 2.2 2. ; 4.0 1.9 2.4 2.7 +345.8 +79. 7-H17. 5 +257.6 +41.2|+18.2
Brazil---- 1.5| 1.4, 2 1 0. 6, 4.4 4.7| +245.5 +81.5 +8.7 H-87.3 +36.5 –5.9
.3 .. 4 .. 5 - 3 × 4 × 4 +375.5 +77, li --8. | +316.4 +26.2|+59.5
1.1| 1.4, 1.8 2. 1 3.0 3.11 +304.7| +57.7i-H24.9| +284.1 +32.9}-H36.4
.6 7, 1.1| 1.4 2.2 2.3 +302. 1 +85. 14-38.2 +345.9 +32.2+35.7
.1 . 1 . 1 .2 .2 . 1 +152, 1| +24.0 –7.3| +73.0 -15.0 +9. 1
.3 5. .5 . . 6 . 6] .7|
- +334.1| +25.0+11. S +208.5 +58.6|+45.3
Latin America, total. 14.0l 16,918.6l 25.8 27.125.2 +222.0 +31. 2+10. s +154. 2 +18.3 +7.4
EUROPE | I
Northwestern and Central-- 56.5. 44. 637. 1| 42.9 25.7|25.1 +58. 8 –1.0 –1.7 --52.8|--|-25.0 +4.9
Sweden .5 . 9; 1.1 . 6, 1.0|| 1.2 +485. 1| +48. +2.4§ +455.9 +55.5|+15.0
Norway-- .4 , ſº .5 . 5, .5 - 5 +202.4 −15.8+11.9 +162.7| +14.8 –2.2
Denmark: .7 1.0.1.0 . . 2. .2 . 1 +234. 2 +20, 7| +9. 1 +75. 7 –24.3|+15.9
United Kingdom- 26. 2. 21. {1} 2| 16. 5, 10.3| 7.5 +49.4| —9.7| +. 1 +18.2 —7.3| –5, 4
Belgium---------- . 5 2.5 2.2 2.4| 1.7| 1.7 -H116.2 +3.2 +2.7| +83. 5 +26.9 — 1.4
.4 6.0, 5.1| 7.7| 4.3| 3.9 +91.3 + 2 +10.4 +31.8 +16.0 +8.0
8| (!)
3 ||. 2.4 2. 1 2.0 i.g. +22.7|, -7.2 -9.8 +140.0 +18.7|, ... 3
. 1|----- | < | 1.0--------- +267, 7+14.6--------- 165.5|+25.4
8. 7. 7.8 10.4i 3.8 5.8 +34.9 T. 1.-12. 2 +44.3 +92.2|+|14.7
1.3 2.2 1.1 : 5, 1.0 +348.7| +99.3 +6.1, H-123.7]+143.0+31.5
.2 .3|----- .2 .3| +391.4|+42.6–20. 5-HT, 241.2 +48. 8+13.8
: l
Danzig---------------|----- . 2, .3|----- 1 : 1--------- +50.3, +3.0'--------- +104.9 +34.7

Soviet Russia in l | | |
Europe--------------- 1.1 .. 7 1.6 1. 1 ... 1 .. 5 +247. 7]+156. 9-1-12.5 +12.5]+372.2+54.3
Southwestern--- 4.5 6.1, 4.8 4.7, 3.3| 3.7| +161.7 —5. 9 –4, 3 +103.4 +40.6+12.7
Italy----- 3.0, 4.2 2.9 3.0, 2.3 2.7 -i-133.4 — 16.9 —5.0 +-128.9; +47.9 +15.1
.2 . 2 .3| .4 .1) . 2 +3.19. 3 +&i-H18.5 +11.8 +90.0 +37.5
1.2| 1.6' 1.6 1.3 .9 .8 +213. 6 +16.5, −5.2 +66.9 +21.7 H-3.0
. 1: .5' .6 . 3. .7] .5 +961.6 +31. 94-13.8 +56.9 —31.4+21.3
(1) .4 .3| . 2, .6 .4|+1,817.6 –2, 4-H20.8 +433.4 —20. 2+21.5
i i |
.. 2 º .8 1.3 : 8 , 8 +221.7 —3.6+80.4 +80.3 +22. *-*.
.2
1.9
.2
2. 1.
. 1| 1.1| ſ . 3}
4.0. 7. 1, 12.814.3 +416.8 +76.2+12.2
+73.5 —45.0;-H37. 0. –36.8 –27.7–33.9
+425.7|-|-48.1 +7.4
: l
.5i
. 1
.9' 1, 1]
.. 2 .3|
3.
1.5
d 3.9| 4.
4.4 5.
!
*
+414.3 +46. +3.1 s
+409. 1| +82. 3.-H.23.9
+174.1 +33.6 +1.2
+871. 2 +56. 1.--17.0
.1 .4 .0 .5| 1.6 1.9 +1,373. 6]+164.8 +32.5 +795.2 +49. 7' —4.5
1.
3.
Q6. 8.5
1.2 1.6
8.0. 7.4 2.3.2. §
1.2 14.414.0' +278.8 +64.8
+437.1 +12.5 +7.3
—8. 3 +547.2
+391. 7 +57.0 +8.8
--24.0 +13.8
1.0, 2.4 2.4 2. 1. 4. 1; 3. 8 +476.3 +19. # –9.7 --370. 6, +17.0 +18.8
.4 .4 .4 .2 .. 5; .31 +114. 1 +9.9–11.0 +282.0 –26.8 –14.0
2.1; 5.5 4.9,
2. 3. 3.2 3.7| 5.0
1.0 9.7;
1.6 9.8
1.3 +472.2 º: Tº
+302.4 +35.8 +6.7, +408.1
+227.4 +28.8
+4.7 +12.3
+5.8
1. § 2. 5 2.91 .. 1. I; 7| +287.7 +34. º +6.1 159. 4. —14.9 +1. 1
- 4. . 6' . 8] .2 - 4. .5 +406.5 +39. |+10. 1. +455.2 +51.0 +8.
Far East total.---------- 7.7|14.415.6 15.5 28.329.6 ±393.5 +297 – 3 +396.4|+38,4-E10.8
AFRICA | — | |
- 3. . 5, . 6 1.1| 1.1. 1.1 +579.5 +60. 3'4-19. 3. +156.9| +28. 3+30. 5

- | .2 .3| 1.0 1.0 .9 +731.0 +70. 6]+26.8 +134.9 +18.5+38.3
..? 1. 1, 1..?] . $ 1.9 1. 4. +392. 5 +98.7 --9. 3 +1,287.5 +76.15-H13.8
- º .7" 1.2
|
.1 .. 3. . * +393.8+103.2 +7.9 +292.0 +3.9 +5.2
-
- -
}}ºhan one-tenth of 1 per cent. -
Turkey in Europe is in this table combined with Turkey in Asia in all years shown.
50
Table 34.—Principal Exports of the United States by Leading Countries of

Destination
NOTE.-Data for 1910–1914 cover fiscal years ended June 30; others are for calendar years.

l
Commodity and country | 1928 1929 Commodity and country º 1928 1929
|
Hams, shºulders, and bacon- 44,993 89,987. 47,313 | Wheat
1,451 1,473 2,238
flour------------------|
Central America.--
51, 127. 73,855. 80,789
2,225 4,768 4,382
1,627. 3,719, 3,065 | Cuba------------- -| 4, 246, 7,638 7,
152: 879. 1, 135 OthcrWest Indies-- -| 4,406. 5,389 4,657
459. 543 539 Brazil----------- -| 3,016, 5, 179| 4,682
# 423 848 Denmark--- -
35,633 26, 164|30,690 Germany---

1 # 646 615
-
Notherlands-------------
847, 1,629. 1,958
. United Kingdom
- Finland-----------
1,277 14,096; 13,304 Philippine Islands------ 1,126 4,537 4, 567
526 1,691| 2,228 China, Hong Kong, kº
United Kingdom -- 23, 3,084 1,844 Kwantung------------ 5, 589; 10,568 15,341
Philippine Islands-----. 176 2,907 3, 157
China, , Ilong
Kwantung-- - - -
Kong, -
80| 1,990,
| 1,463
Cottonseed cake and meal---| 12, 557. 12,912 10,065
IDenmark-- -j 4,385| 7,666 5,802
Japan------------------- - 38 1,290. 1, 234 Gerlilany 1,641
i
Laid------------- 52,098 98,701|105,530 Linseed cake and meal 33, 138

Canada 1, 180| 2, 115| 2, 130 Belgium S| 4,
Mexico | 795 7,611 7,859 Netherlands 10,059
Cuba -- 4,601| 1Q,318; 9,873
Colombi: 191| 3, 109; 3,504 || Apples (fresh)-------------- 5,670 26,663. 33,188
Peru.------- | 324 1,018 1,064 Canada--------- 694| 1,270. 1,228
Belgiurn- | 1,852 i. 937. 2, 539 Argentina------- 48 1,063. 2, 132
Sºmalºy-i-- -- 15,083| 23,499| 26,694 Brazil----------- 69 530 634
Netherlands---- 4,052 4,992 5,497 Denmark 35 637 658
United Kingdom --| 18, 403 30, 123| 31, 216 Germany 699 4,093 4,473
#º and Danzig------ 402 3, 174| 3, 225 United Kingdom-------- 3,650 13,596 15,440
3, 401| 3,410 Raisins and prunes 28,891) 23,228
Undressed furs-------------- 117,465 33, 186 29, 113 Canada--------- 3,466 2,983
Canada.-- 12,768 7,843 6,732 France ---- 23| 3,322, 1,706
Gerinany 16, 184| 8, 154|| 7,806 Germany--------- 5, 525 5,045
United Kingdom 17,307|14, 188: 11,310 6,857 5, 155
Barley, grain---------
Canada.--
5,073|
38
44,837|
16, 942,
24, 155
7,369
*; *};
1.902 1.465
Germany
United Kingdoi
914||
3,300
11,829|
10,949.
3,898
9, 237
18, 117 21.8%
º w
31,065 33,480
Corn, grain------------------ 25, 231|26,369; 34,059 1.278] 1,
Canada.-- 5, 200 9,032 9,320 - - 1,082. 1, 118
Mexico.--- 1,811 453. 404 . Argentina------- 2,564; 2,874
Cuba-------- 1,640 885 767 : Brazil--- 1,447. 1,
Netherlands---- ! 3, 17s 6,37; 6,0; ; Penmark 1,397. 1,355
United Kingdom 6,805 3,671; 6,63i Germany 1,601 1,
R in-------- |; §k d
nited Kingdom-- *:::
565 *:::
*::::::
a l- * .33 3:
23 10,433| 2,936 , ś.”.
Ital * *271
25, 1,652
1,020 2,013
§: -------------
5 § "% - 1.
ºilº
dPall-------------
44; i.20; 1,335
2 146 183
Wheat, grain
Çanadi --
º,ossils assuſ, so
i. 742 43. 569 37. 308
Aºi.......
British India------------
:: *;
1257
º;
853 1,087
Belgium- 7, 135| 3,809, 6,645 || Rosin and gum spirits of tur
France--------- 2,979| 2,871. 2, 319 || pentine-------------------- 23,074 24,294; 28,973
9ermany-------- 6,088 2,775; 4,778 Canada---------- 1,061 1,420, 1,432
Irish Free State---------|------- 3, §73. 3,967 : Argentina------- 6| 1,571 1,815
Netherlands------ 4| 7, 138 5,355 I}razil----------- 1, 152 1,531|| 1,437
United Kingdom. 20,463| 18,474 27, 758 | Germany---- 5,431| 4,757 5, 253
aly----------- 2,411 9,061 Netherlands------- 2,658. 1,803] 2,080
Greece-- -- 64| 5,356, 8,304 United Kingdom-- 6,305 6, 168 7,554
Japan------------------- 1,994| 7,023. 8,515 . Japan----------- 1,408-------
! Year ended June 30, 1913.
* Year ended I).cc. 31, 1921. Data are not shown separately for earlier years.
51

Destination—Continued
1910–
Commodity and country º 1928 i 1929 | Commodity and country 1914
1928 1929
154, 1331145,811 6,382. 26,786 37,800

4,493 3,710 1,979. 22,235 32,357
2,505 4, 266 354| 990 1,428
5, 542, 3,456 Japan------------------- 2,254 2,911
####
line and
16,735,232,298 266,904
hina---- ######|***:::: - >
3,511||13,574 | 20, 579

Japan------------------- 440, 5,531|| 4,880 Argentina--------------- 1,890, 9,323 11, 189
Australia---------------- 2, 185| 7, 555, 7,330 Brazil------------------- 765 8,410
Cigarettes-------------------- 2,823 22,059 16,706 Belgium 561 -
Panama----------------- 7 999| 1,497 Denmar 200, 3,977

British Malaya--------- 1,211 627| 260 France--
Philippine Islands------ 27] 1,772 2,266 Germany---------------
1, 880
iſ 37.77
5,405
China, Hong Kong, Netherlands------------- 8, 178
Kwantung------------- 992 15,030 8,466 #Kiſſ----------- 6, 539
60, 758
Cotton, unmanufactured. --ſº 920,009.770,830 Yºngdºm::::::: 14, 203
9,632 24, 219, 23,055 New Zealand...I.I.I. 6,432
#; ;|... . . .”
Illuſiºns
,836; 86, 1
217,891169,457 ||oil-------------- - -- -
93, 466
4, 226
18, 209 15,457 | #. -------
- - |---, 2.3.1:...is Netherlands...I.I.I.I.I.

5, 295 |
Soviet Russia in Europe-i 31,
5, 293
508, 44, 537. 79,
29,493 Unit d"Ri dom...III.
Italy 78,836 660 B § . OIIl--------
- -I7; 28, 794
- TlllSIl 1D1011a------------
1, 565 28, 361

China, Hong Kong, 8,091
| Kwantung------------ | 810, 17,743 23, 149 5, 601
| Japan-------------------| 18, 548120,272109,399 1, 482 4,639
71,885| 71,491
5| 8, 183; 8,908
2,442 2,023 18, 306| 45,812 37,200
6, 165; 7,140 1 1,774 2,801 2, 491
9,014 0,633 140|| 1,361 1,678
3,282 1,718 1506| 4,851 3,003
1924, 5, 266 4,464
| 4, 167| 3,747 || 1 109| 2,793 2,007
| 4,208 2,863 | 13, 707 5, 813 4,735
2, 478; 3, 168
------- 4, 256 4, 379
12,019 10,124
29,005; 28,647 25,270 92,090 103,596
1,313| ".zi, 875 4, 500 5, 679
1,949 2,202 817 3, 550
# 3,206 1,456 4,730 £7;
2,901 10, 560 12,293
7; º | Germany:
Hº! 2,949. 9, 182
2,266 2, 160 Kingdo -
6, 4% 14,839
1,019 5, 143
2,747 2,331 išritish I -
2,002 1,984 Japan.T...I.I.I.I.I.

1,098. 1,537 || Ajià...I.I.I.I.I.
16, 624 20,748
},9.4| || || Iron and steel plates, not fab
1,767 2,250 ricated
hina, Hong Kong, | | | | || “...i.----------------- 19,239; 9,375
16,706 8, 247
2,405, 4,252
3, 530, 2,367
1,079 1,687
13, 600 13,739 17, sº
12,429.
14,759
2,577
2,725, 2,777 583
º: 7,006 1362.
1514 8
32,657; 32, 569 1 102. 1,617
1182 882. 657
------- 32,291 Netherland
Netherland East Indies 187; 1,620 1,593
;§ ;; Philippine Islands------ 1522 2, 169 2,639
1,317; 1, 521
2,498 2,531 15, 369| 13,577 14, 307
140 197 13,917 6, º: 6,776
745 942 4 1,834
§ 2,145 169| 4,383 1,933
* Year ended June 30, 1913,
52

Destination—Continued
i -
Commodity and country || 1928 1929 | Commodity and country † 1928 1929
Tin plate, terneplate, tagger Automobiles (passenger)---- 124,276.263,5761234,284

tin --- 3,816. 26, 346 28,566 18,229) 33,445 33,354
2,400 5, 786 5,535 1423, 7,935 8,004
101| 1, 224, 1, 185 11, 182] 26, 262 25,839
133| 2, 166 2, 103 1 1,035 13,798 9,297
101| 936 389 | f iſo 4,683 4,618
- - - - - ----- 943 620 - 1273 3,764 4,428
163| 1,362. 1, 103 | 186] 15,914 12,656
177| 5,493 4,453
441, 3,301, 4,526 1764. 10,803 6,843
100 6,092 6,988 1615, 3,390. 4, 211
Copper (ingots, bars, rods) --1127,883,151,406

Canada----------------- 5,743; 7,076 162,982
10,832
Belgium - 1 1,301; 11,677 8,836 1356 5,044, 6,360
France---- - 1:19,445. 25, 999 32, 574 1198 5,436 5,532
Germany--- 141, 179| 30,017, 31,664 11,897|23,569 18,868
Netherlands-- 1991 6,876 5,901
United Kingdom.
Italy----
-7 139 3 791 37 300 1 1,* 15,469] 14,420
Japan------------------- 2 4, 670 1,604 :

- - 1 1,737 91, 361||111,435
Lead (pigs, bars).----------- 7,927 10,210 7,072 i. 11,004 8,561| 7,958
Germany------- -- 4 175' 2,063 914 178] 12,257. 13,648
United Kingdom- --- 4 3,457. 3,813 2,295 175 7,561| 8,022
Japan------------------- * 382, 1,027, 1,584 | itm------------------------ 2,277 5, 145
- in- 1, 2,827 4, 101
Typewriters-
Canada- - 10, 7310 21,011
- 1,001 22, 844
1,018 Sweden.------------------------ ! 3,772,
- x-- 3,841, 3,256
6,249
Argentin 357. 1,021, 1, 157 British India------------------- 3,314|| 3,798
Brazil----- 252 821 888 . Australia----- 1 23 8,359 12,397
Czechoslov ---. . ſºft .. 730 | British Africa.--------- 19| 4,675 4,002
France ------- - 1,034, 1,972. 2,617 |
Germany----- 1,147. 841; 1,053 -
United Kingdom- 2,375, 3,250, 3,299 -
Italy---------- 370 845 764 62,421107,678

Spain------ - 111, 786 794 40,721] 38,467
British India- - 187. 820 694 : 2, 153| 7,591
Australia---------------- i 381. 650 659 | 170, 6,932
| i Belgium 1,033, 5,877
Combines (reapers, thresh- - France--- 1,866; 6,242
ers)----------------------- * 1,028 10,449 15,536 Germany 5, 206; 7,645
Canada- -- • 46' 5,473 4,757 United Kingdom 1, 176; 7,578
Argentina--------------- • 684 4, 172, 8,607 Japan------------------- 6, 177' 10,036
l
Wheel tractors º-------------- 6,521 44, 360 49, 108

Canada.----- :| * 4,734' 10, 114 13,808 || Automobile parts for replace- |
Argentina- "His 3, §§ 3.33i || ment.I.T.I......... 721,965 60,334 66,026
Germany--- * 390 2,059, 1,550 Canada---- 11, 194| 6,674, 9,679
|United §º -------- ; : 20 1,07 620 Argentina-- 7 1, 183| 4,046 5,857
Soviet I?ussia in Europe- 5249 2,857 11, 411 Brazil------ - 7 1,000 3,049, 3,361
* 3, 1,142 929 | Germany----...-- -- 774 5,349 4,223
* 93 l 3,638 | 1,472 !
United Kingdom-------- 7 2, 164| 4, 905, 4, 118
1 Year ended June 30, 1913.

* Year ended June 30, 1915. Data not shown separately for earlier years.
* Gasoline, steam, and other power-traction engines ſor year ended June 30, 1913,
* Year 1925. 1)ata are not shown separately ſor earlier years.
7 Year 1924. Data are not shown separately for earlier years.
53
Table 35.-Principal Imports of the United States by Leading Countries of

Origin
NotE.—Data for 1910–1914 cover fiscal years ended June 30; others are for calendar years.
- i |
Commodity and country |. 1928 1929 Commodity and country ºf 1928 1929
Cheese--- 8,795 º22, 282 || Olive oil, edible

45' 1,801: 1,818 France-- -
. 3,342; 14,951. 16,408
1,421; 905 920
France- 839. 1,758; 1,934 Italy---- -i 4, 264 9,946 12,397
Switzerl 2,958: 5, ;
6,051 Spain------------ -------- 282, 3,798 2,585
Italy-------------------- 3,950 12,833. 10, 130 C b
: OCOa, or cacao beans--------- 16,009. 47,205. 49,493
Cattle hides----------------- 42,469. 63,694; 42,599 joininiºn republic III 3,706 Agºs. 4.447
4% ſ § , Ui 5, º;
- Pººl, Wºndesand |
eIIIlll ClilS.------------- 4, 242 5,225
5 5,000
12,782. 32.38il 23, 198 Venezuela----- j "Gij Žiš Āšić
2,274 2,883; 1,996 Brazil--------- - 1,775 8,443| 8,054
*:: }} 1 º; #. : *}} ; ; 2,020
, Z/2: erIlla Il V-------- -- 13. 103| 1.921
1,iii. i.gº. "iii išritish West Africa...I. i. 15,673 19,432
2,592, 942 - | -
65. 1,705.
Kip and calf skins----------- 21,665. 16, 105: 16,400
436 | corº
Mexico.--------
------------------
Central America
----- º º:
: 4, 522 10, 193|302,
I 4.33 i., §iš 1i, Jóź
397
7, 858
Canada---------- 1, 121, 2, 541 1,497 Colombia------ - 7,849, 69,592 78,811

France--- 1, 148; 1,991| 2,039 | Venezuela- 5,736||12, 190 13,799
Germany- 4,941 2,465. 2,739 | Brazil------------------- 1842||189,830,78.3%
Latvia------------------------- $76 744
Sweden.------------ - 34G 1, º 1,980 i U
nite
d Kingd
ingdom--.
*: ; º; 866
534, 8, 162
Sheep and lamb skins---- 11,025, 20,731. 21, 905 British India and Cey 1,717; §oiš 8, 739
Argentina---------- 610| 3,402' 3,468 Netherland East Indies- 25: 1, 513| 1,391
United Kingdom- 5,030, 3,092 3, 164 China and Iſong Kong. 2,975 3.0% i. 75.
New Zealand----- 750, 5,901, 5,701 Japan------------------- 7,957, 5,250, 5,152
4,749, 4% º || Sugar (cane).---------------- 103,517,207,028209,277
} ; #; Cub : *:::::::::::::: ::::
y » : 5, 827, 46, 873. 49, 692
3,844 3,314 v, v-, *, *, *, *,
2,011 1,816 || R. 86,345244,895.240,967
| || 1: Rubiºude) ####### ,
Netherland 150: 2,052 2,569 , 1,958
27,5ii. 28,930,
China and Hong Kong. 2013 4,091 7,120 2.94%|133,012|168,534
#.
Leather gloves--
und----------------
8,078
3 103, 16,
§ 11,3. ; !§ 551 łºfEast
Netherland * º 49, º 40, 858
4,2}}}#}} {
rance------------------ y '% º || Copra.----------------------- 1,807. 22,778 24, 195
Hºy......::: :::::: *:: *; 4*.
Y--------------------
; British Malaya---
º Islands-
’’: "...# 3.5%
id: 16, 548, l; #.
Fox furs other than silver or
black, undressed.---------- ''}}. 16, : 1% 2% Australia--------
British Oceania----------
| 42 1,014 2,
68 1,144, 1,956
,969 3,810. 4,598 !
14,082
1 1,392
}}} §§
2,018 1,396
| Flaxmeedº------------------ 12,334 31, 24; 43,542
Canada 6,435 5, 129, 2, 176
- | Argentina--------------- 3, 578 26,046 44, 196
1,11,152. 20, 210 19, 611 : Chinese wood oil------------- * 2,734; 13, 413 14,972
|'', 287| 5,651, 5,840 China------------------- 12,059, 12,033, 13,733
I
1744. 4, 221, 3,231
| 13,533 4,818, 5,349 : Coconut oil-:----------------- 4,445, 23,061 29,552
7, 942 5, 13 ; Philippine Islands------- sº aw 29,552
!, #7, 1, 4: ' Tobacco, leaf.--------------- 54, 526 53, 159
t
2,579
1,000; & .
339 Cirº)
*iºr.
:
Netherlands----- -- ,
-- - --- --
197 15,
7,407! 13, 630
ºn 1
750
15,388
Lamb, kid, sheep, and goat | cºlºr :#; ####

skin furs, undressed.------|------- 15,617; 29,812 Cigarette leaf------------ (i) ; 20,614 18,072
# *;
# * Italy---
Greece---------------
3,766, 4, 182
235, 8,341, 11,561
Ži 3, 527 Turkey I inpe - - - 2. 042
4,073, 5,051 and Asia----------- : 7, 664; 2,042
- il Cotton, unmanufactured----- 20,651 42,797 53,333

22,040 16,249
22,037, 16,248 |
Mexico
Peru- : -
824,
957; 1,925,
#. 5,013
2,299
35,881 36,048 United Kingdom 1,590 3, 226 4, 197
3, 121] 3,219 | 278. 2, 129: 3, 543
23,923; 24, 582 Ch na - - - - 925 5,070 2,635
5,487 4,999 || Egypt.--- 15,874; 25,811! 35,322
1 Year 1923 * Leaf tobacco other than “cigar-leaſ wrapper.”
* Year ended June 30, 1913. * See note 3.
54
Table 35.-Principal Imports of the United States by Leading Countries of

Origin—Continued
Commodity and country † 1928 1929 Commodity and country † 1928 1929
Cotton cloth------------------, 9,041 15,842|| 15,901 || Boards, planks, deals-------- 17,622 40,445, 43,302
Czechoslovakia----------------- 1,273 1,488 --| 16,912 36,902 39,588
France------- 1,649. 1, 109; 1,155 Philippine
Switzerland- 306| 2,302, 2,344 inetwood)------------- 52 1,538 1, 582
United Kingdo 6, 201| 9,991 6,399) 16, 157| 14,599
l
Burlaps-------- 29,421 80,087 6,335||15,363 13,412
United Kin 5,049 6,881
British India------------ | 24,084 66,871 *::::: º; 82,326
i 1 31, 523 30, 402
Carpet wool.----------------- 14,810 37,947 2,649 4,287| 1.345
Argentina--- 502 2,245
Hººd Kingdom ;; 3,068
3, |; *5,055
; 4,765
33, ;
- ,459 6,
3. 504 4,707 || Standard newsprint.---------- 4,804|139,433|144,493
11, 722; 12,503 Newfoundland and Lab
| 7, 124, 7,434
8,051; 6,966 126, 174|132,282
10Z§ 797
1,202,
; :
|
2,949| 2,576
19| 2,081.
-
1,r 564
3,348, 2,452 cru; petroleum

CX1C0-------------
-: 4,937 90,473] 79,943
*::::::::
ing wool--------------- ; ; ;|
4, 952 31,729i 31, 901 $º:::::
Netherland West::: *::: 27,370|
Indies--------| º! 12,;
165
l 29
§küß -------
4,103 Venezuela
------- -
21, 275 32,609

-
Australia------- 8 $486 || Gasoline and naphtha--- * 2 31, 516 43,335

New Zealand-- 15| 2,941, 3, 122 Mexico.-------------- -- $2 3. 915 37 869
Woolen and worsted cloths---| 12, 578| 19, 115, 19,850

France- 3 1,634
Nºwº l
1,960 || Decorated china and porce
W I --------- 2,766 37,370
1,873 1,513 lain------------------------ i 8,808 9, 138|| 8,992

14,485 15,208 France---- 1,435 2 § 2%
Germany-- - -
carºteº#.---------
ingdom--
-- 4, ; *::::: *::::::
-, 93. -
Japan----------- - 3,377 3, 515
§. ------g ------------ 4| 1, § 1,070 || Diamonds (cut, not set). 42,396 42,010
Turkey in Europe and l Belgium lº, 322 7, 15?
Asia---- 2,029 2,455, 2,334 Netherlands 21, 552| 19,045
Persia---- ----| 1,218, 8,275, 7,906 -
British India------------ § 1. . . *...**in ...".S,

china and Hong Kong.
*---- reg
2s 2.90 2.983 |
va'
tº "., unre e
p º I
58,279 ; º 127,864
Canada- - 28,366 18, 30, 390
Tºº Mexico.-- a 1.3%; i. 712|35,791
y 10,007 3,600 7,384 Cuba-- 2 678]
1,425 1,625
China and Hong Kong--| 12,878 45,049, 61,597 §hile-- j:#; ; ; ;
Japan------------------- 52, 641,318, 124356, 122 §. -
##|*|††
y - -
Silk fabrics (broad, except Africa--- * 456] 16,331|| 10,390

pile fabrics) 9,068|16,428 16,811 || Refined copper-- - (*) | 12,634 23,757
ºã. #% # § # ; Chile---- ; (3) | 12,472. 23,592
iºn I
-------------
China and Hong Kong--

'267] "gº,
106 975
i. 103
1,144
|| Lead ore, matte, bullion
Mexico.---------
3,380 14,448] 12, 157
#
299| 8, 616
Japan 2, 172 6,724 6,721 Peru - ,275] 2,971
Tin (bars, blocks, pigs)------ 41,511 86,988 91,839
##| ##| || Netherlands------------- i.10; .2%. 3,317
'387 i. 156 1.034 United Kingdom- 22,678] 13,289 17, 231
> - British Malaya---------- 14,853| 58,334|| 61,323
Sodium nitrate--------------- 17,615. 36,991 34,913
1 2,385 #: Chile-------------------- | iſſãº $2.2 #465
3,601 || Potash fertilizers....--------- | 12,485 18,558] 17,639
1, 748 Belgium----------------- 13| 5, 174 5,276
2,213 Germany. ----------- 12,443 12,557 11,460
* Year ended June 30, 1914. -
* Data by countries for 1928 are exclusive of sulphate pulp, bleached.

* Not shown separately.
t º BUREAU OF FOREIGN AND DOMESTIC COMMERCE

- a WILLIAM L. COOPER, Director
REGEIVED
app 11 1930
C. e i t . . . . ."
TH MARKETING OF
NICKEL
F
05
|
§ UNITED STATES

WASHINGTON : 1930
For sale by the Superintendent of Documents, Washington, D.C. - - - Price 10 cents

FOREWORD
Throughout the world the industrial nations have, during the past
few years, required ever-increasing amounts of alloys. So rapid,
indeed, has been the increase in demand as to presage the dawn of
an alloy age.
The part played by nickel in this development is a most important
one, in that nickel when alloyed with iron and carbon, as well as
with chromium, tungsten, vanadium, molybdenum, cobalt, etc., im
parts to the resultant product physical properties that can not be
duplicated in their entirety by the use of any other metal; various
combinations of nickel and copper possess great resistance to corro
sion and erosion, thus prolonging many fold the usuable life of the
material.
At present the world's consumption of metallic nickel approxi
mates 40,000 tons a year. The increase since 1923 (when consump
tion was about 31,000 short tons) shows what can be accomplished
by intensive research work directed along the lines of collecting and
disseminating information on the properties of metals, investigating
the rational and economic scope of their industrial application, and
searching for possible new uses. Not only has this policy, carried
out by individual organizations, been remunerative to the industry
as a whole, but it has brought about a better understanding of the
many uses to which nickel may be applied.
This bulletin has for its purpose the presentation, in brief form,
of answers to the questions, “What is nickel?” “Where is it pro
duced 2 * “For what is it used ?” and “How is it marketed?” If
data in more detail are required, the Minerals Division of the bureau
will, upon request, gladly furnish what supplementary material it
has available.
APRIL, 1930.
(II)
THE MARKETING OF NICKEL
By J. W. Furness, Chief, Minerals Division
The limited geographical distribution of commercial deposits of

nickel illustrates the possibility of mineral occurrences being sus
ceptible to monopolistic control. The Sudbury deposits of Canada
and those in New Caledonia furnish more than 90 per cent of the
nickel utilized in the industrial world, Canada supplying 96 per cent
of this amount.
It seems probable that metallic nickel was unknown to the
ancients; where the metal has been found present in articles fabri
cated by them, this use was no doubt accidental, and it may well
be that some of the famous weapons mentioned in history were made
from meteoric iron containing nickel. The complex copper-nickel
sulphide deposits of Yunnan, #.
are supposed to have furnished
the natural alloy from which was fashioned the coinage of the
early inhabitants of Turkestan. (Specimens of Bactrian coins
made from such an alloy bear date of 235 B.C.)
General references:
DeLauney, L. : Traite de Metallogonie, Gites Mineraux et Metalliſeres,
vol. 2; Paris and Liege, 1913, pp. 573–604.
Coleman, A. P. : The Nickel Industry, with Special IReference to the Sud
bury Region, Ontario; Canada Department of Mines, Ottawa, 1913.
Royal Ontario Nickel Commission : Iteport and Appendix: Toronto, 1917.
World Atlas of Commercial Geology; U. S. Geol. Survey, part 1, 1921, p. 33.
IRumbold, W. G. : Nickel Ores; Imperial Institute Monographs on Mineral
Resources, with Special ‘Reference to the British Empire, London, 1923.
Stanley, R. C.: Nickel Past and Present ; Paper presented at Second
Empire Mining and Metallurgical Congress, Toronto, 1927.
Mineral Resources of the United States: Nickel ; annual issues.
MODE OF OCCURRENCE
While nickel is one of the commonest of the minor constituents of

igneous rocks, it is a comparatively rare metal. It is not known to
occur in nature unalloyed as metallic nickel, but does occur as native
alloys of nickel and iron of terrestrial and extraterrestrial (meteoric)
origin. F. L. Hess, in “Mineral Resources of the United States “
(1915, part 1, p. 745), states:
The occurrences of nickel according to their form and origin seem to fall
into nine classes, not all of which, however, are now of economic value. The
classes are:
1. Iłasic igneous rocks carrying sulphides of nickel with pyrrhotite as
Original constituents. This group may be subdivided into—
(a) Deposits in which the sulphides have segregated at or near the
edges of the mass.
(b) Deposits in which the sulphides are distributed more or less
evenly through the mass.
2. Nickel sulphides in regionally metamorphosed rocks.
(1)
<)
-
3. IBasic igneous rocks carrying nickel as in original silicate.

4. Hydrous nickel magnesium silicates formed through the decomposi
tion of rocks carrying nickel silicate. -
5. Ilateritic iron ores carrying nickel, col)alt, and chromium.

6. Weins carrying nickel sulphides, antimonides, and arsenides.
7. Sulphi(le (leposits carrying traces of nickel, but in which copper or
lead is the principal metal economic value.
8. Placers carrying native alloys of nickel and iron.
9. Meteorites.
The commercial deposits of nickel may be divided into three

classes, based upon their character and genesis: Sulphides, which
invariably are associated with a norite type of rock; hydrosilicates,
occurring in decomposed lodes of basic igneous rocks such as altered
serpentine and peridotites; and arsenides. As a rule, the ores are
found in narrow vertical veins in rocks of widely varying character.
IRei'erences :
Lindgren, Waldemar : Mineral Deposits, 1913, pp. 324-326.
Beyschlag. F., Vogt, J. H. L., and Krusch, P: The Deposits of the Use
ful Millel lls aird Rºcks, Their Ori-in. I’o:'m, and Content : London, vol.
1, 1914, pp. 205–206.
NICKEL MINERALS
Numerous minerals contain nickel, but only a few of them are

of commercial importance. The more common ones are listed below:
TABLE 1.—NICKEL MINERALs
Nickel
Class of mineral Name Forinula
percent | *º:
content,
y
Hardness
- -
§.
°olydymite
Sulphide----------------- Millerite ---
-------
- -
4 st tº
-
5.3 -5.65 ||
3.#! -
3.0–3.5
Arsenide-----------------
§º-
Niccolite----
{èjì. -
-
#3%
- ... to
6.4 —6.6
o:
5.0–5.5
5–6
Sulpharsenide--- - Gersdorflite------- 5.6 —6.2 5.0–5.5
Antimonide----- Breithauptite ---- 7.54 5.5
Sulphantimonide-- - Ullinannite 6.2 —6.7 5.0–5.5
Hydrate i silicate. - | Garnierite----- 2. 3 –2.8 2–3
Hydrated arsenate - - - Annabergite 3.0 1.5–2.0
Hydrated carbonate --- Zartite-------- 2.6 –2. 7 3.0–3.2
Source: Rumbold, W. G.: Nickel Ores; Imperial Institute, Monographs on Mineral Resources, with
Special Reference to the British Empire, London, 1923, p. 3.
In the Sudbury deposits of Canada pentlandite is the nickel

mineral most frequently encountered; generally, though not always,
it is associated with pyrrhotite and chalcopyrite. In the deposits
of New Caledonia garnierite is the predominating mineral; the
composition varies, as the proportion of magnesium to nickel is never
constant.
Reference:
I)ana, E. S. : A System of Mineralology, 6th ed., 1920.
PROPERTIES
PHYSICAL PROPERTIES
Metallic nickel when free from sulphur and other impurities is a

highly ductile and malleable metal of silvery-white, luster with a
steel-gray tinge. It may be rolled into sheets 0.0008 inch thick and
drawn into wire 0.0004 inch in diameter.
•)
U
The metal is somewhat magnetic: it has, in the commercial

grades, a magnetic transformation point at about 320° C. The
melting point is rather high—given by the Bureau of Standards
United States Department of Commerce, as 1,452° C. (2,646° F.);
the boiling point has never been determined. The specific gravity is
8.8; atomic weight, 58.68: electrical conductivity, 12.9 if that of
silver be taken as 100.
Some of the physical properties as determined for relatively pure
nickel (99 to 99.95 per cent nickel) are: Total contraction, in inches
per foot, one-quarter; ultimate strength, in pounds per square inch,
65,000 to 140,000; yield point, in pounds per square inch, 20,000 to
100,000; reduction of area, in per cent, 30 to 75: elongation in 2
inches, up to 53 per cent.
TABLE 2.-AvKRAGE CoEFFICIENTS OF ExPAN SION OF ("o M MERCIAL NICKEL
Composition in per cent

º: Material - H- t
Ni Cu Fe MI) C Si S
--
—— — — ——— — -
- -
|
#º " " " " ":"

#|;
Šimºnieś (§0°
Sº ſº
j987, F.) for 1 hour. -- . 17 . 38 . IS " " ".
.22' .2ſ; . 020
§ {...":#8. Gººfyºrº...}º tº 4, 28 tº . . .”
#|†:#8. Gººfyºrº...}** * * * * * *
Average coefficients of expansionX 100
Lab. ºn tari | | r
No. Material 25 to 100 to 200 to 300 to 400 to 500 to 25 to 300 to 25 to

100° 200° 300° |400° 500° 600° 300° 600° 600°
C. C. (". C. (". (". (". (". (2.
–––. -- ~ -- - --
--—
S635 | Hot-rolled, 36-inch round--------------- 13.2 14.4 15.3 | 16.8 15.5 16.9 11.4 1(j. 4 15.4
S636 | Saine; annealed at 870° C. (1,600° F.) i | ;
for 1 hour---------------------------- 13.3 14.5 15.4 | 16.4 16.6 16.3 14.5 | 16.5 15.5
$652 | Hot-rolled, 96-inch round, low carbon-- 12.9 , 14.5 15.4 | 16.9 16, 5 10.8 14.4 16.7 15.6
sº | Same; anneāied at 300° C. (i.6508 F.) - | -
for 1 hour-------------------------. 13.3 14.5 15.5 | 16.7 16.3 16.9 14.5 16. 6 15. 6
S654 Hot-rolled, 36-inch round, high carbon- 13.0 14.2 15.7 | 15.9 15.7 14.4 14.4 15.3 14.9
S655 | Same; annealed at 900° C. (1,650° F.) | !
for 1 hour---------------------------- 13.3 14.2 15.6 | 16.3 : 16.2 16.3 14.5 16.3 | 15.4
S637 Hot-rolled, }4-inch round--------------- 13. 1 13.5 14.8 17.2 16.6 17, 1 13.8 17.0 15.
S638 : Same; annealed at 870° C. (1,600° F.) -
for 1 hour---------------------------- 13.5 14.3 15.8 16.0 16.6 17.3 14. 6 16.6 15.7
S639 Hot-rolled, }4-inch round--------------- 13.2 14.1 | 15.4 || 15.9 16. 7 17.3 14.3 16.7 15.5
S640 Same; annoaled at 870° C. (1,600° F.) - |
for 1 hour---------------------------- 13.3 14.1 15.4 15.9 16.6 17.6 14.3 16.7 I 15. 6
Source: Nickel and Its Alloys; Bureau of Standards Circular No. 100, 2d ed., 1924, p. 28.
References:
Copaux, H. : Comptes-Itendus de l'Académie des Sciences, vol. 140, 1905,
pp. 657–659.
Browne, D. H., and Thompson, J. F. : Physical I’roperties of Nickel ; Trans.
Am. Inst. Of Min. and Met. Engr.S., Vol. G4, 1920, p. 414.
Nickel and Its Alloys; Bureau of Standards Circular No. 100, 2nd ed., 1924,
pp. 25–39.
Malleability and Metallography of Nickel ; Bureau of Standards Technologic
Paper No. 281, 1925.
-
4
ChemicAL PROPERTIES
Nickel in the massive state does not readily oxidize when exposed
to air at ordinary temperatures; at a red heat it becomes coated with
a greenish-gray oxide. Like iron, nickel wire when heated burns in
oxygen. Nickel slowly decomposes steam at red heat. Acetic, citric,
tartaric, and oxalic acids have little or no effect upon it unless left in
contact for a long time. Hydrochloric and sulphuric acids dissolve it
very slowly, nitric acid and aqua regia dissolve it rapidly. The metal
is not affected by fresh or salt water.
Among the many compounds which nickel forms with other ele
ments, those most frequently encountered are the oxides, sulphides,
arsenides, silicates, sulphates, chlorides, and nickel carbonyls.
Reference:
Hale, A. J., and Foster, HI. S. : Jour. SOC. Chem. Ind., 1915, p. 464.
METALLURGY
There seems no reason to suppose that nickel ores are amenable to

flotation methods of concentration: practically the entire reduction
of nickel ores throughout the world is by pyrometallurgy. The usual
procedure is to reduce the ore direct in a blast or reverbatory furnace,
where it is converted into a ferruginous matte. This matte is besser
merized, and a material as rich as possible in nickel and copper (if
copper be present) is produced. This product may be refined by any
one of three processes, namely, the Orford, the Mond, and the
Hybinette.
When reduced by the Orford process the matte is fused with
sodium sulphide. In this way a separation between the copper (if
present) and iron from the nickel is effected, in that the upper and
more fusible layer contains most of the copper and iron and the
bottom layer chiefly nickel sulphide. Complete separation may be
accomplished by repeating fusion once or twice. The nickel sulphide
is washed, dried. and roasted with salt, which converts it into an in
soluble oxide, while the copper forms copper chloride, soluble in
Water. The nickel oxide thus recovered is reduced to the metallic
state and marketed, in various forms. This process is adapted only
to opes that do not have a precious-metal content. -
The Mond process depends upon certain chemical reactions. The

matte produced by the converter or Dessemer process is roasted to
reduce the sulphur content below 2 per cent. A 10 per cent sulphuric
acid sºlution leaches out upward of 70 per cent of the copper, while
very little nickel is dissolved. The residue is washed to free it of
acid, and treated in a reduction tower where it comes in contact with
a stream of water gas. At a temperature of about 350° C. the gas
reacts on the nickel oxide, reducing it to metallic nickel. In a voia
tilizer the retluçººl material is brought into contact, at a temperature
of 50° to 80. C., with producer gas rich in carbon monoxide and
forms a yolatile compound known as nickel carbonyl, Ni(CO) 4, which
is passed through decomposing towers where a temperaturé of 2009
C. is maintained. By this treatment nickel carbonyl is decomposed
and nickel and carbon monoxide obtained. The nickel is collected
-
by passing the heated gas containing the nickel particles in suspen

sion through a mass of nickel granules, on which the nickel is deposited
in concentric layers. By the Mond process all the precious metals in
the original matte are recovered, and the copper may be marketed as
copper sulphate.
The Hybinette is an electrolytic refining process. When this
method is used, the matte obtained from either the Bessemer or the
converter is treated in the same manner as in the Mond process.
The material thus obtained is melted and cast into anodes. Iron
plates thinly coated with graphite are employed for cathodes, the
electrolyte containing in solution 45 grams of nickel sulphate per
liter. Direct current is used, the voltage ranging from 160 to 170.
Nickel is deposited on both sides of the cathode and is stripped off
when it reaches a specified thickness. The precious metals obtained
are recovered from the slimes.
References:
Royal Ontario Nickel Commission: Report and Appendix; Toronto, 1917,
pp. 464–478.
Liddell, ID. M.: Handbook of Non-Ferrous Metallurgy, vol. 2, 1926, pp.
1289–1317.
USES
The manifold applications of nickel in industry have never been

tabulated, and therefore a complete statement of consumption by
uses can not be given. In 1917 the Royal Ontario Nickel Commis
sion, through the cooperation of various distributors, made a rough
allocation of the quantities of nickel consumed annually for certain
specific purposes, as follows:
Coinage, not over 500 tons;
Electroplating, metallic nickel and its salts, about 500 tons of metallie
nickel, in England ;
Nickel silver, 1,500 to 3,000 tons, in England ;
Steel making, approximately 75 per cent of the world production during
the World War period; in peace times, judged by the English consump
tion, approximately 45 per cent of the world production.
Curtailment in the manufacture of armor plate and projectiles
following the disarmament conference of 1921 greatly altered the
distribution of nickel.
A later estimate (1925) showed that 37 per cent of the world's
production of nickel was utilized in the manufacture of steel, 33.1
per cent in anodes, 17.1 per cent in nickel silver, and 3.1 per cent
in miscellaneous products. These figures do not include rolled goods.
The use of wire made from nickel containing from 1.5 to 4 per cent
of manganese is fairly well, established, particularly in the manu
facture of spark plugs. Nickel sheets are in increasing demand
in the dairy industry and for hotel and cafeteria equipment, and
nickel rods for the manufacture of turbine blades; and an unknown
tonnage of rolled nickel is consumed by the chemical industry.
6
CHRONOLOGICAL DEVELOPMENT
Robert C. Stanley, in “Nickel Past and Present,” shows (p. 20)

the development of the industrial uses of nickel as follows:
TABLE 3.−DEVELOPMENT OF INDUSTRIAL USES OF NICKEL
Per ºnt
- o
Use 1 Date of origin Names

- : world's
ºted with |tiºse nickel
gln began | .º.º.
ºr
about Sump
tion in
1926
GROUP 1
Nickel silver--------------------- “Paktong,”very early Geitner, Henninger, Merry, 1830 15

in China. and Askin.
Coinage-------------------------- 235 B.C.-------------- Bactrian coins-------------- 1850 2.
Nickel plating------ 1843 A. D.------------- Boettger------------------- 1870 5
Structural nickel stee 1889------------------- Marbeau, Riley, IIall, and 1890 35
Hadfield.
GROUP 2
Copper-nickel alloys 2 Feussnor and Lindeck 1900 2

Nickel catalyzers-- Sabatier and Senderen 1905 1
Nickel for storage-ba Edison--------- 1905 2.
Nickel-copper alloys--------- - AImbrose Monel 1906 20
Heat-resisting electrical alloys---- Marsh and Placet 1910 5
GROUP 3
Malleable nickel----------------- - 1912 5

Nickel-steel castings * 1915 2.
Nickelbronze-------------------- 1920 1.
Corrosion-resistant steels (nickel Pasel and Johnson.--------- 1920 1
chromium).
Iron-nickel alloys.---------------- 1895------------------- Dumas, Benoit, and Guil- || 1925 2.
aul Iſle.
Nickel cast iron------------------ 1907------------------- Guillet--------------------- 1925 1
Miscellaneous alloys (aluminum, ----------------------------------------------------- 1920 1
white gold).
-
| --
| Group 1, in substantial industrial use in 1900; groups 1 and 2, in substantial industrial use in 1918; groups
1, 2, and 3, in substantial industrial use in 1927.
* Other than coinage and Monel metal.
As quoted by Thomas W. Gibson in “Mineral Industry, 1928’’

(p. 439), Stanley distributes the consumption of nickel, based on a
world output of 40,000 tons a year, as follows: Tons
Wickel silver ------------------------------------------- 6,000
Coinage ----------------------------------------------- 800
Wickel plating------------------------------------------ 2,000
Structural nickel steel---------------------------------- 14,000
Copper-nickel alloys----------------- - ---- 800
Nickel catalyzers - 400
Storage-battery plates (Edison type)--------------------- 800
Nickel-copper alloys (Monel metal)
Heat-resisting electrical alloys ––––––––––––––––––––––––––
Malleable nickel ------------------------------------
Nickel-steel castings —
Nickel bronze ------------------------------------------
Corrosion-resistant steels--------------------------------
t Iron-nickel alloys–––––– - ---- S00
Nickel cast iron ---------------------------------------- 400
Miscellaneous alloys ––– ---- --- 400
Broadly, consumption of nickel can be divided into four classes—

(a) where the nickel is used unalloyed, (b) as a component of alloys,
(c) as a coating on other metals, and (d) as a chemical or catalytic
*
(
reagent. However, in the discussion of the main industrial uses

of nickel, below, the chronological order of Table 3 has been followed
in the main.
NICKEL SILVER
Nickel silver has been in industrial use for a century. The alloy,
then called argenta, was first prepared by Henninger Bros., of Berlin,
and Doctor Geithner, of Schneeberg, from cobalt speiss containing an
average of 49 per cent of nickel, 37 per cent of arsenic, 7 per cent of
sulphur, and some iron and other impurities. Later it was pre
pared from copper, zinc, and metallic nickel and was known as
neusilber (new silver); in England it was marketed under the name
of German silver. German silver is superior to brass in hardness,
strength, and power of resisting chemical action. Commercially
this alloy is employed largely for ornamental and hardware cast
ings, automobile trimmings, and domestic plumbing fixtures.
References:
Wickers, Charles: Metals and Their Alloys, 1923, p. 457.
Stanley, R. C.: Nickel Past and I’resent; Paper presented at Second
Empire Mining and Metallurigical Congress, Toronto, 1927, p. 21.
COINAGE
As already said, coinage is one of the oldest uses of nickel. In

the past an alloy of copper and nickel was employed, the nickel
imparting hardness and giving the alloy a white color. Since 1850
pure nickel has been used, because of the difficulty of counterfeiting
such coinage due to the high melting point of nickel.
References:
Vickers, Charles : Metals and Their Alloys, 1923, 1). 457.
Stanley, R. C.: Nickel Past and Present; Paper presented at Second
Smpire Mining and Metallurgical Congress, Toronto, 1927, p. 21.
NICKEL, PLATING
Nickel plating calls for nickel in the form of “ platers’ anodes’

and nickel sulphate (known in the trade as “nickel salts'). The
anodes, with a nickel content of from 85 to 99 per cent, have as their
chief impurities iron and carbon; pure metal can not be used in
plating solutions containing only sulphates. A relatively large
amount of nickel is consumed as water-soluble sulphates in plating
solutions. In recent years chlorides have been added to the electro
lyte to increase corrosion of the anodes, and therefore anodes with
95 to 97 per cent nickel are now more common. Nickel plating both
improves the appearance of the finished article and forms a protec
tive coating for the base to which it is applied. Nickel is commer
cially deposited on iron, copper, zinc, and many alloys.
The following is a list of the reagents in various formulas used
in nickel plating:
1. Nickel electrotyping :
Nickel ammonium sulphate.
Nickel sulphate.
Sodium chloride.
102404—30—2
8
2. Nickel plating—double-salt solution:

Nickel ammonium sulphate.
Ammonium chloride.
IBoric acid.
3. Nickel plating—single-salt solution:
Nickel sulphate.
Ammonium chloride.
IBoric acid.
4. Nickel plating—fluoride solution:
Nickel Sulphate.
Sodium fluoride.
IBoric acid.
5. Nickel plating (Watts)—for high-current density or in hot Solutions:
Nickel sulphate.
Nickel chloride.
Boric acid.
6. Nickel plating on zinc (Hammond):
Nickel sulphate.
Nickel chloride.
Iłoric acid.
- Sodium citrate.
References :
Nickel ; Ibureau of Standards Circular No. 100, 1921.
Vickers, Charles : Metals and Their Alloys, 1923, p. 474.
Nickel and Its Alloys; Bureau of Standards Circular No. 100, 2d ed.,
1924, p. 51.
STRUCTURAL. NICKEL STEEL
Nickel alloy steels were the first alloy steels to be employed com
mercially for structural work. The most common of such steels are
those containing from 3.25 to 3.75 per cent of nickel; the carbon
runs from 0.2 to 0.5 per cent.
Previous to 1913 by far the larger part of the nickel consumed
was in the manufacture of armor plate—the first important appli
cation of these steels. Since 1922 the use of nickel steel for general
industrial purposes has increased so rapidly that, nothwithstanding
its curtailment for armor plate, the world's consumption of nickel
and its alloys in 1928 was greater than for any preceding year.
Nickel steels usually are produced by the open-hearth method.
The alloy as a rule contains from 0.5 to 0.8 per cent of manganese,
and possesses a high tensile strength and an elastic limit comparable
with corresponding carbon steels. Among the uses of nickel steels
are the following: In locomotive and railway plants; marine and
stationary engines; bridge construction; transmission shafts; pro
jectiles; armor plate; and in the motor-car industry for the manu
facture of axle gears, axle shafts, steering knuckles, stress bolts,
connecting rods, crank shafts, and other parts—as much as 1%
pounds of nickel per automobile, it has been estimated.
HIGH-NICKEL IRON ALLOYS
Certain nickel alloys containing from 20 to 50 per cent of nickel

and known to the trade as “high-nickel steels’ are used industrially
to a lesser extent than the steels that have just been described; they
are marketed under various trade names. There are many such
“steels,” among them : -
Ferromickel.—This alloy contains 25 per cent of nickel and is

used in the electrical industry as resistance wire, in electrical toasters,
cookers and similar devices, and in the construction of rheostats.
9
Invar.—Invar usually contains approximately 36 per cent of

nickel, 0.5 per cent of manganese, and 0.5 per cent of carbon, the
remainder being iron. Its characteristic property is a remarkably
low coefficient of expansion (0.0000008); this quality and the fact
that it is practically noncorrosive make it suitable for the manu
facture of measuring instruments, chronometers, etc. The alloy
melts at 1,425° C. and can be forged, drawn, and worked readily.
Platinite.—Platinite is composed of from 54 to 55 per cent of
iron, 46 per cent of nickel, and 0.15 per cent of carbon. It derives
its name from the fact that it has the same coeflicient of expansion
as platinum. It is used in delicate mountings of special lenses to
avoid strain upon the lense with changes of temperature: also for the
leading-in wires of electrical incandescent lamps.
Because of their resistance to corrosion nickel steels with 30 per
cent of nickel are used in the manufacture of marine-boiler tubes.
References:
Hibbard, H. I). : Manufacture and Uses of Alloy Steels ; Hur. of Mines
Bull. No. 100, 1916, pp. 36–45.
IRoyal Ontario Nickel Commission : IReport and Appendix : Toronto, 1917,
pp. 381–402.
Nickel and Its Alloys; Bureau of Standards ("ircular No. 100, 2d ed., 1924,
Nickel Steel ; Alloy Steel for I}oiler (’onstruction : International Nicke)
Co. L'aper No. 12, 1928.
COPPER-NICKEL A. LLOYS
Copper-nickei alloys usually contain nickel in amounts ranging

from 5 to 25 per cent, the remainder being largely copper. A high
electrical resistance is imparted by the addition of manganese in
varying quantities. The ductility of these alloys makes them partic
ularly valuable for pressed work for automobile radiators, lamps,
etc. In manufacturing cupronickel a very high temperature is nec
essary, as well as avoidance of oxidation. Cupronickel forms the
base of a great many alloys: numerous patents have been taken out
based upon the addition of small quantities of other metals to it,
such as zinc, tin, and manganese.
Constantan.—This alloy contains 60 per cent of copper and 40
per cent of nickel; it possesses the characteristics of high tensile
strength, ductility, resistance to corrosion, and a very pleasing ap
pearance. One of its important applications is as an element in
thermoelectric pyrometers.
References:
IRoyal Ontario Nickel Commission : IReport and Appelldix: Toronto, 1917;
pp. 326–327.
Some Nickel Alloys: Metal Industry, London, July 28 and August 11, 1922.
Wickers, Charles: Metals and Their Alloys, 1923, p. 463.
NICKEL CATALYZERS
For many years it was thought that the only metals which would
catalyze the hydrogenation of unsaturated hydrocarbon were those
of the platinum group. About 1896 Sabatier and Sendorens dis
covered that nickel possessed this property. Later, it was found
that all oxides of nickel are capable of acting as hydrogen carriers
for the hydrogenation of oils at atmospheric pressure. The advan
10
tage of the oxides over metallic nickel is that their action is much
more rapid.
As a catalyzer nickel is principally employed in the hardening of
oils, but it is commercially adapted also to the production of solid
edible fats from liquid unsaturated oils such as cottonseed and
peanut. It is thought that nickel catalyzers may be used for the
cracking of petroleum.
References:
Comptes IRendus, vol. 132, pp. 210, 566, and 1254; Annales de Chim. et de
Phys., 1905 (8), vol. 4, pp. 319–488.
Chem. Rev. Fett. Ind., 1912, pp. 19, 218, and 247.
Stanley, IR. C. : Nickel Past and Present: Paper presented at Second
Empire Mining and Metallurgical Congress, Toronto, 1927.
STORAGE-BATTERY PLATES
A substantial amount of nickel is consumed annually in the Edi

son type of storage battery, in which the plates are perforated pieces
of nickel containing nickel oxides and finely divided iron immersed
in an alkaline solution. Batteries of this construction are used
extensively in power units, trucks, mine and railway cars, and to
some extent by the radio industry.
IReferences :
I)ictionary of Tariff Information, 1924, p. 297.
Stanley, R. ('. : Nickel Past and Present ; Paper presented at Second
Empire Mining and Metallurgical Congress, Toronto, 1927, p. 23.
2dison Steel-Alkaline Storage Patteries: National lºducation Association,
Joint Committee Series, Mon. III, 1927.
NICKEL-COPPER ALLOYS
Among the best known of the nickel-copper alloys are Monel

metal and Corronil. The former is referred to as a “natural alloy "
and is produced direct from the Bessemer matte; the latter is a simi
lar alloy manufactured in England.
Jſonel metal.-The average composition of Monel metal is 67 per
cent nickel and 28 per cent copper, the remaining 5 per cent being
made up of varying proportions of iron, manganese, silicon, and
magnesium sulphate. The properties which make this alloy com
mercially important are its resistance to corrosion and erosion, the
finish which it takes, and its strength and hardness at high tempera
tures. It has many industrial applications—among them various
types of food-handling equipment, propellers, pump rods, ore
dressing screens, pickling tanks and crates, in the construction of
mining and of dyeing machinery, and in the chemical and oil indus
tries. Its ability to retain a high polish makes it suitable for trim
mings, stamping, golf-club heads, and for knives; its resistance to
erosion under high pressure renders it adaptable to the manufacture
of pressure valves and steam-turbine blades. Monel metal may be
welded by the oxyacetylene process and soldered and brazed in the
same manner as COpper.
Iteferences :
IRoyal §§
ºx--> - -
Nickel Commission: IReport and Appendix; Toronto, 1917,
Nº. Its Alloys; Bureau of Standards Circular No. 100, 2d ed.,
1924, pp. 61–66.
11
HEAT-RESISTING ELECTRICAL ALLOYS
While nickel heat-resisting electrical alloys diſſer greatly in com

position, they consist largely of nickel, chromium, and iron. Among
the physical qualities—apart from their high electrical resistance—
that render them valuable to industry is their ability to stand high
temperatures without scaling or oxidation. This type of alloy is
widely utilized in all fields of high-temperature work as castings,
plates, sheets, pipes, and fabricated shapes.
Reference:
Stanley, R. C. : Nickel Past and Present : Paper presented at Second Em
pire Mining and Metallurgical Congress, Torontto, 1927, p. 24.
MALLEABLE NICKEL
Malleable nickel has been known since 1865. In 1878 the firm of
Joseph Wharton, of Philadelphia, exhibited rolled pure-nickel strips
at the Paris Exposition. Shortly after this a number of patents
were taken out for the production of malleable nickel.
In the preparation of metallic nickel for forging or rolling a small
amount of manganese was added; it was thought that this addition
would eliminate the nickel oxides which were present. Ilater metallie
magnesium was added to the molten nickel in amounts ranging
from 0.05 to 0.125 per cent. Studies carried on by the Bureau of
Standards resulted in the publication of that bureau's Technological
Paper No. 281 entitled “Malleability and Metallography of Nickel.”
in which it is stated that the presence of sulphur, and sulphur alone,
makes ordinary cast nickel nonmalleable unless treated as above.
The chief uses of malleable nickel are in dairying and chemical
equipment and in the manufacture of seamless tubing.
References:
Merica, P. D., and Waltenberg, IR. G. : Malleability and Metallography
of Nickel; Bureau of Standards Tech. I’aper No. 281, 1925, p. 281.
Stanley, R. C. : Nickel Past and Present: Paper presented at Second Em
pire Mining and Metallurgical Congress, Toronto, 1927.
NICKEL-STEEL CASTINGS
Nickel-steel castings are manufactured by adding nickel to steel.

This addition has the same effect on castings that it has on forged
and rolled forms; the nickel imparts strength and toughness to the
steel, rendering it resistant to fatigue and shock, and in a lesser
degree hardens it.
As a rule, chromium is a component of the so-called nickel-steel
castings, and occasionally small amounts of vanadium, molybdenum,
and manganese. The higher costs attributable to the incorporation
of these various metals are more than off-set by the physical quali
ties they impart to the steel.
Reference:
McKnight, Charles: Making Steel Castings Stronger; The International
Nickel Co. Inc., Nickel Steel No. 4.
NICKEL BRONZES
So-called nickel bronzes are largely alloys formed of copper,

nickel, and zinc in varying percentages. These complex brasses
combine the strength of mild cast steel with the resistance to corro
12
sion of bronze, and are used extensively in the manufacture of

articles to withstand the action of sea water and steam.
Reference :
Sturney. A. C. : Nickel Brasses; Metal Industry, London, Nov. 23, 1928,
p. 485, and Nov. 30, 1928, p. 521.
CORROSION-RESISTANT STEELS
During the past few years nickel-chromium steels have come into
use in the United States, England, and Germany. Not only are
they resistant to chemical action, but they have as other physical
characteristics great strength and high fatigue resistance.
Commander Harold E. Saunders, in a paper read at the thirty
seventh general meeting of the Society of Naval Architects and
Marine Engineers, in November, 1929, stated:
Summarizing, there are now available to the designer and builder of ves
sels, in commo: ill “hapes and fºrms, liaiſ a dozen types of corrosion-resist
ing alloy steels which, through their remarkable freedºm from progressive
corrosion, their increased strength, their heat-resisting and nonmagnetic prop
erties, and their ability to be forged and formed into innumerable shapes and
parts, offer a means of improving the design, bettering the construction, in
creasing the reliability and serviceability, and raising the general standard of
efficiency for ships and their machinery.
Although possessed of certain limitations and hampered somewhat by high
first cost, these corrosion-resisting steels, if used in a manner based upon
sound design principles and backed by successful experience, offer to the
designer a fruitful field for decreasing weight and increasing durability, and
to the owner Ol' Operator a guaranty of the most satisfactory, reliable, and
consistent operation with the minimum of overhaul and upkeep.
Among the commercially important steels of this class are:
.1//eſ//en/ metal, with an approximate analysis of Cr 17 to 20
per cent, Ni 7 to 10 per cent, Mn 0.5 per cent, Si 0.5 per cent, C
approximately 0.2 per cent, and Fe:
Carpenter stain/ess steel, Fe, Cr 18 per cent, Ni 9.5 per cent, C 0.1
per cent;
/) uraloy, Fe, Cr 18 per cent, Ni 9 per cent, Mn 0.5 per cent, C
variable; - -
Enduro, Fe, Cr 16.5 to 19.5 per cent, Ni 7 to 10 per cent, Si 0.75 per
cent maximum, Mn 0.5 per cent maximum, C 0.15 per cent maximum.
Roferences :
IIibbard, H. D. : Manufacture and U'ses of Alloy Steels; Bureau of Mines
Bull. No. 100, 1916, pp. 38–45.
IRoyal Ontario Nickel Commission : Report and Appendix; Toronto, 1917,
pp. 381–418.
Nickel : Bureau of Standards Bull. No. 100, 1921, pp. 60-77.
IRON-NICKEL ALLOYS
From a commercial standpoint, by far the most important alloys

of nickel are those with iron, including nickel steels. Such alloys
were first discovered in meteorites. Nickel and iron alloy in all
proportions, and the magnetic properties of some of the alloys are
of particular interest.
FOR M.AGNETIC UTSES
Alloys containing 3 to 30 per cent of nickel are nonmagnetic, at

room temperatures; those having in excess of 30 per cent of nickel
13
are magnetic, and as the nickel content is increased so, too, is the
magnetic permeability. This change in the magnetic properties has
led to the classification of these alloys into two groups, known in
the trade as “reversible '' (magnetic) and “irreversible * (non
magnetic) steels. Variations in the alloys may be brought about
.# changing the ratio of iron to nickel or the carbon content, thus
effecting corresponding alterations in such properties as thermal
expansion, elasticity, and electrical resistance.
Permalloy.—In the reversible group, an alloy containing 78.5 per
cent of nickel (the remainder being iron) and marketed under the
name “Permalloy’ is used in the construction of ocean cables; due
to its properties, the rate of transmitting signals has risen from 300
to 1,500 per minute. Permalloy is also used for the audio-stage
transformers of radio receiving sets.
Nomag.—In the irreversible group an alloy containing from 10 to
15 per cent of nickel and from 5 to 10 per cent of manganese (the
remainder being cast iron) and known as “ Nomag ' is practically
nonmagnetic and also has a high electrical resistance. It is used com
mercially for electrical castings, such as motor end-rings, switch
covers, insulator supports, and resistant grids.
FOI: CORROSION RESISTAN ('E
Among the iron alloys marketed for their resistance to corrosion

are :
Illium, containing approximately 60.65 per cent of nickel, 21.07

per cent of chromium, 6.42 per cent of copper, 0.98 per cent of
manganese, 1.04 per cent of silicon, 2.13 per cent of tungsten, 1.09
per cent of aluminum, 0.76 per cent of iron, 4.67 per cent of molyb
denum; carbon and boron not determined. This alloy is claimed to
have excellent resistant qualities against sodium hydroxide, sea
water, mine water, and gases containing carbon monoxide.
Elcomet, containing approximately 21 per cent of nickel, 54 to 56
per cent of iron, 10 to 12 per cent of chromium, 9 per cent of copper,
and 3.4 per cent of silicon. It is used on account of its resistance to
nitric acid not stronger than 10 per cent.
During 1929 two nickel alloys appeared on the market which, be
cause of their physical qualities, would seem to be of special im
portance; one , is a nickel-iron-molybdenum alloy, particularly
adapted to the handling of hydrochloric and other acids; the other
a nickel-chromium-silicon-iron alloy, resistant to sulphuric acid as
used in metal-pickling processes.
IReferences:
Stanley, IR. C. : Nickel Past and I’resent : Paper presented at Second Em
pire Mining and Metallurgical ('ongress, Toronto, 1927.
Plummer, C. L. : Acid and Corrosion ltesistant Alloys; Paper presented
Feb. 18, 1929, before the Tri-City Branch of the National Association of
Purchasing Agents, IRobert W. Hunt ('o., ("hicago, Ill.
NICKEL CAST IRON
Nickel cast iron is manufactured by adding nickel to gray iron;

this both increases the hardness, wear resistance and strength, and
14
improves the machinability. The use of nickel in cast iron is quite

recent, and the commercial possibilities of the product, although
promising, have not been much developed as yet.
Among the nickeliferous cast irons are those manufactured from
the Mayari Cuban chromiferous nickel-iron ores. The pig iron made
from these ores contains 0.8 to 1.25 per cent of nickel and 1.6 to 2.5
per cent of chromium. It is possible by using the proper grade of
Mayari iron, and in some cases with the addition of nickel, to produce
gray iron, white iron, chilled iron, or high-test castings.
References:
Merica, P. D. : The Nickel Industry; Trans. Can. Inst. of Min. and Met.,
vol. XXIX, 1926, pp. 32–36.
Bethlehem Mayari Pig Iron; Publ. 26, Bethlehem Steel Co., Bethlehem, Pa.
Silvery Mayari Pig Iron ; Booklet 54, Bethlehem Steel Co., Bethlehem, Pa.
Hanson, D.: Nickel Cast Iron ; Bur. of Inf. on Nickel (Ltd.), Series B,
No. 5.
MISCELLANEOUS ALLOYS
There are many other alloys of nickel, but these in the aggregate
consume relatively small tonnages of the metal. Among them may
be mentioned: Nickel manganese, used for spark plugs and dental
wire; lead-nickel alloys, resistant to both hot and cold sulphuric acid;
nickel-iron-chromium alloys (one of these, called Nichrome, is com
posed of 60 per cent nickel, 26 per cent iron, and 12 per cent chro
mium), much used for die castings, valves, valve seats, annealing
boxes, etc.; aluminum die-cast alloys, with approximately 4 per cent
of nickel.
In the manufacture of white gold nickel serves as a decolorizer;
this alloy contains from 15 to 20 per cent of nickel, the remainder
being gold, and has an appearance similar to platinum.
Nickel alloyed with aluminum gives the alloy properties in effect
the same as when copper is alloyed with aluminum; as nickel costs
more than copper, it is little used in this form. However, nickel
aluminum seems to corrode less rapidly than copper aluminum, and
on this account there may be a field for it. At present the only alumi
num alloy containing nickel which is used to any important extent in
the United States is the so-called “Y” alloy; nickel in this alloy is
thought to render the aluminum less subject to changes at high
temperatures.
, References:
Vickers, Charles: Metals and Their Alloys, 1923, pp. 456–489.
Nickel and Its Alloys; Bureau of Standards Circular 100, 2d ed., 1924,
pp. 116–121.
Stanley, R. C.: Nickel Past and Present; Paper presented at Second Em
pire Mining and Metallurgical Congress, Toronto, 1927, p. 27.
NICKEL SALTS
Nickel sulphate is probably the most important of the various salts

made from nickel, but it is followed closely by nickel ammonium
sulphate. . These salts are used chiefly in the plating industry, al
though nickel ammonium sulphate is employed also as a coloring
material in ceramics. Of lesser importance are:
15
Nickel carbonate, used in electroplating, as a catalyzer in the hydro

genation of oils, in ceramic glazes as a color, and in the manufacture
of other nickel salts:
Nickel chloride, used in the manufacture of sympathetic inks and
in the nickel plating of zinc;
Nickel oxides, used in the manufacture of nickel salts, in storage
batteries, and for porcelain painting:
Nickel cyanide. used in the electroplating industry and in metal
lurgy;
Nickel carbonyl, used in plating;
Nickel formate, used in the hydrogenation of oils;
Nickel salts are obtained as a domestic product in the United States
only in the electrolytic refining of blister copper, and the needs of the
country must be partially supplied by imports. Nickel salts are also
produced in Wales, derived from the refining of Canadian nickel
matte.
Iteferences:
Summary of Tariff Information, 1929, vol. 1, pp. 45–48.
WORLD PRODUCTION AN ID IMPORTS
At present the industrial nations of the world draw almost wholly

on Canada and New Caledonia for the nickel which they need.
Canada's nickel-ore deposits are much more extensive, and offer better
facilities for production at low cost, than those of any other country
and are of sufficient size to meet the world's demands for many years.
During the past half-decade more than 90 per cent of the total world
consumption has been supplied from the mines of the Sudbury district
of Ontario. The reserves of New Caledonia, while large in compar
ison with those of all other countries, are insignificant when compared
with those of Canada.
Current production of nickel ore is confined to Canada, New Cale
donia, Germany (Saxony), and Greece: production in the United
States is in the form of nickel sulphate and nickel ammonium sul
phate recovered from refining of copper. The principal ports from
which the metal is shipped in international trade are Colborne,
Ontario; Swansea. Wales; London and Liverpool, England: Havre
and Marseille, France. -
The world's production of metallic nickel in 1927 and 1928 and the
nickel ore. matte. and metal imported by the principal consuming
countries during 1924-1928 are shown in Tables 4 and 5. Owing to
the lack of official data, these tabulations are incomplete, and at best
must be considered only near approximations. In the import table
(Table 5), it will be noted that some of the columns do not add to the
totals shown, as complete itemization by countries of origin was not
available, and no attempt was made to account for the difference.
102404—30—3
16
T.AIBI.E 4.—WORLI) I’IROI) UCTION OF NICKEL, 1927 AND 1928
| In motric tons]
1927 1928
ſº--- t i
() ro | Matte | Ore - Matte

Country —!-------- - - - - -- - -- - - - - -- -
Nickel Nickel Nickel Nickel

, Total con- || Total con- . Total con- Total | con
tent tent tent tont
Australia (Tasmania)
Austria *-------------- -- (539
Canada.------ -- * 1,224,887 71,251
Germany (Saxony) ". . 92
Greece ----- ! 50ſ)
India, Britis (3)
New Caledonia- - - 118,000
Norway---- - - - ---- 7, 612 -
United States *--------------- '-------------------- 780 ------------ !-------- 1,892 474
1 Nickel content of ore from stock mined in 1914.

2 1927–nickel ammonium sulphate 167 tons, nickel carbonate 284 tons, nickel oxide 18S tons; 1928–nickel
oxide. Produced at copper smelters at Salzburg.
5 Data not available.
1 Ore Smelted.
* Cobalt-bismuth-nickel ore.
6 Speiss.
7 Metal.
* Metal. In addition, 1,159 tons of nickel-copper matte were produced, nickel content unknown.
9 Nickel Sulphate and nickel ammoniuin sulphate.
TABLE j.—IMPORTs of NICKEI. OrE AND NIC KEI. INTO PRINCIPAL CONSUMING
(“OU’NTRIES 1924--192S
| In metric tons ]
Importing country and commodity | 1924 1925 1926 1927 1928
UNITED STATES
Nickel ore and Inafte: 1
Imported from--
Australia
Belgium
('anada
France-...-----.
French ()ceania
Nickel and alloys, in pigs, ingots, and other forms:

Imported from — -
Austria --------------------------------------- - --
Belgium------
British India
("anada
France--
Germany---
Hong Kong
Japan-----------
l’nited Kingdom
Total-------------------------------------- 4: , 13,257
- (; felt M A NY
Nickel ore:
Imported from -
Australia----...---- - - - - (2)
Belgium and luxemburg (4)
British India- - - ! (2)
(*)
(2
(2)
(*) 97 131 234 ----------
495 1,624 492 253 || 1,465
Total.------------------------------------- 632 2, 799 2,970 2.474 2.33%
1 Nickel content only for the years 1924 and 1925. * Imports by countries of origin not available.
17
TABLE 5.—IMPORTs of NICKEL ORE AND NICKEL INTO PRINCIPAL CONSUMING

COUNTRIES 1924–1928—Continued
[In metric tons]
lmporting country and commodity 1924 1925 1926 1927 1928

- I
|
-- GERMANY–continued |
Nickel (crude):
Imported from—
Austria | 16
Belgium-- 307 502 540
Canada--- 221 421 ; 690
Czechoslovakia 5 3
47 38
5% sº
70'----------
Netherlands 20 46
Norway.-- 2
Spain-----
Sweden.-----
1, 565
4, 167
FRANCE
Nickel ore:
Imported from—
Belgium and Luxemburg-------- ------------ - - - -
Germany----------------------
Great Britain
Greece--------
Netherlands--
New Caledonia
Switzerland--------------------------------- -
8,667
Nickel, matte, and speiss:
Imported from—
Austria------------------
Belgium and Lux
Canada--------------------
Germany-----
Great Britain
Netherlands--
New Caledonia
United States--
Other countries------------------------------ .
Nickel, crude, in ingots or lumps: |

Imported from— -
Australia---------------------------------------------- 200 ---------- (4)

Belgium and Luxemburg---- 694 224 (3)
Germany-------------------- 141 ---------- (3)
Great Britain---------------- 1, 175 450 (3)
New Caledonia------------------------------| 377 -------------------- 200 (3)
200 156 (3)
--------------------- (3)
17 57 (3)
2, 427 1,087 (3)

G.R.E.A.T. BriTAIN i
Nickel ore and matte: - I
IIIlported from— |
Australia------------------------------------ 337 ---------- 2 : 104 ----------
Canada------------------------------------------- 1,643 |---------- |
----- 2 ----------
Total-------------------------------------- | 337 1, 643 2 .
Nickel (in pellets, cubes, rondels, etc.):

lmported from—
|Belgium------------------------------------- 5 20 5 --------------------
British India------------------ --- 175 310 189
Canada------------------------ - -- 190 1,041 633
France------------------------ ------------ 7 17 10 2
United States ---- -- - - - - - - - - - - 36 106 198 552
Other countries------------------------------ | (; 9 52 32
Total.------------------------------------- 178 142 562 1,611 1,408
* Imports by countries of origin not available. 3 Not available.

18
TABLE 5.—IMPORTs of NICKEL ORE AND NICKEL INTO PRINCIPAL CONSUMING

('OUNTRIES 1924–1928—Continued
[In metric tons]

- l
Importing country and commodity 1924 1925 1926 1927 | 1928

- i
i |
JAPAN | -
Nickel, ingots from—

Imported and grains: |
I t
Belgium------------------------------------- 53 5 3 ---------- ()
Canada - - - - - - - - (2) I (?) 27 131 (#)
China-- 3 (2) (?) (2) {}
(Frent H - 454 223 197 463 (3
Netherlands-- - (2) i | (2) (2) (3)
United States---------------- - - - 335 | 53 159 14 (8)
Total-------------------------------------- 846 281 386 608 (*)

be LGIUM -
Nickel (crude):
Imported from— | t :
France---------------------------- 4 S13 . 319 33 27 (...)
French possessions in ()ceania. - • 2,329 2,280 , 2,227 1,092 (*)
Germany------------------------------ - - - - - - - 16 36 27 (3)
Great Britain- A 20 4() 41 108 (3)
Netherlands - - - - - - (4) (2) (2) (3)
United States - - - - - - - - - - - * 255 (4) (2) (2) (s)
Other countries.-----------------.. - - - - * 22 (4) (?) (2) (*)
Total------------------------------------- * 3, 445 2,660 2,353 2, 177 ()
ITALY | i
Nickel and alloys,

Imported from— including scrap: 1.
i
Austri'l - - - - - - - - - - - - - - - - - - - - 15 () () (*)
Belgium------------------------------- 5 108 (5) (5) (*) .
Pºpt------------------------------------------------- 10 : (3) (5) (*)
France- - 15 4 (8) (5) (8)
(lerillany- 243 231 (8) (5) (3)
(irofit Brit 912 6t (5) (5) (5
Notherlands-- -- - - - 33 45 (3) (3) (s
Switzerland-------------------------- - 84 10 (5) (8) (*)
Turkey in Europe- - - - - - - - - - - - - l (5) (3) (*)
United States------------------------ - ----- 475 3i (j | {} (*)
Total.------------------------------------ 1, 767 1, 128 741 848 1,299

spain
Nickel, in ingots, cubes, etc.:

Imported from
Belgium-- (*)
Canada--- (3)
France- {}
Germany--- (s
Great Britain (3)
Netherlands-- (3)
Portugal.-- (s
Sweden--- (s
Switzerland------------------------- - ----- (3
Total-------------------------------------- 225 148 137 237 (*)
* Imports by countries of origin not available.

3 Not available
* January to November 9, inclusive.
* Not separately classiſied.
19
PRESENT-DAY SOURCES
CANADA
During the 5-year period 1923–1927, 88 per cent of the world's

total output of nickel came from the mines of Canada. The Domin
ion's deposits lie on the north shore of Lake Huron in the Province
of Ontario, the most highly mineralized area being known as the
Sudbury, basin, which is some 36 miles in length and 16 miles in
width. The surface is covered with sand, gravel, and clay; where
outcrops occur they are in the main sandstone, slate, tuff, and
conglomerate.
º:llacefirstminediscovery of nickel in Ontario was made in 1848 at the
near the mouth of the White Fish River. Finding
of the Sudbury deposits followed closely on the building of a rail
way through that region in 1883, but it was not until 1884 that
mining properties were located: ore production began in 1886 at the
Copper Cliff property. , Prior to the development of the Sudbury
area the relatively meager world's consumption of nickel was met
by supplies from New Caledonia, Norway, Sweden, Germany, and
the United States.
The year 1889 witnessed the discovery of the valuable properties
imparted to steel by nickel. One of the first uses of this alloy was
in the manufacture of armor plate for warships. In the early stages
of the development of nickel consumption New Caledonia maintained
its position as the world’s largest producer, but by 1905 Canada
had forged to the front with an output of 9,503 long tons against
New Caledonia's 6,765 tons for that year. Since 1905, except for
minor setbacks Canada has steadily increased its production while
New Caledonia's has remained more or less constant.
MODE OF OCCURRENCES—EXTENT OF DEPOSITS
Nickel occurs in the Sudbury region associated with copper, iron,

sulphur, gold, silver, and the platinum group. ... The nickel-pyrrho
tite ores consist largely of the mineral pentlandite.
Various estimates of the extent of these deposits have been made,
all of them indicating that there are reserves sufficient to supply the
world's needs for many years. Diamond drilling in one of the mines
has revealed recently a tonnage materially greater than the estimate
of 60,000,000 to 70,000,000 tons presented to the Royal Ontario Nickel
Commission in 1916 by Thomas Travers. It would seem from data
published in 1928 that a conservative estimate of the Sudbury re
serves would be in excess of 150,000,000 tons of proven minable ore.
Previous to 1925 most of the ore raised was smelted at Port Col
borne and the matte shipped to Bayonne, N.J., for refining. Since
that date a refinery has been built at Port Colborne, and nearly two
thirds of the matte produced is smelted there; the remainder is
shipped to the Clydach refinery at Swansea, Wales.
20
NICKEL-ORE PRODUCTION AND REFINERY OUTPUT
The following table shows Canada's production of nickel ore and

the metals recovered in copper-nickel refining during 1927 and 1928:
TABLE 6.-NICKEL-COPPER REFINING IN CANADA, 1927 AND 1928
Schedule 1927 1928
Matte treated ---tons-- 39, 253 67,886

Nickel oxide marketed pounds--| 8,478,963 || 12,445,951
IRefined and electrol -do----' 28,469,996 || 49, 142,644
Blister copper recovered ---do----| 22,656,720 || 41,609, 160
Precious metals recovered:
Hold---------------------------------------------------------------- 1 4,886 3,850
Silver----- 188, 180 222,924
Platinum --- 11. 217 10,452
Palladium------------- -- 11,247 11,389
Rhodium, ruthenium, osmium, and iridium---------------------------do---- 298 2 1,698
1 Includes small recoveries by the Mond Nickel Co. at Clydach, Wales.

2 Rhodium, ruthenium, and iridium.
Source: Preliminary Report on the Mineral Production of Ontario in 1928; Bull. 68; Toronto, 1929, p. 20
Teferences :
Coleman, A. P. : The Nickel Industry, with Special Reference to the Sud
bury Region, Ontario: Canada Department of Mines, Ottawa, 1913.
Royal Ontario Nickel Commission : IReport and Appendix; Toronto, 1917.
IRumbold, W. G. : Nickel Ores; Imperial Institute Monographs on Mineral
IResources, with Special IReference to the British Empire, London, 1923.
Mineral Resources of the United States; annual issues.
GERMANY
In Germany the production of nickel from the domestic ores

amounts to between 200 and 300 tons a year. This ore is derived
principally from low-grade garnierite in Frankenstein, Prussian
Silesia. Nickeliferous pyrrhotite is mined at Sohland in Saxony.
Occurrences of nickel-bearing ores in Germany are numerous, but
the tenor of the ore is low, and the deposits are small in comparison
with developed deposits in other parts of the world.
The industries of Germany using nickel depend chiefly upon the
output of German nickel refineries, which in turn draw their raw
material in the form of matte mainly from New Caledonia; but
there is also a small quantity of nickel produced annually in the
refining of copper matte from domestic ores as well as imported
matte. It has been estimated that as much as 800 tons of combined
nickel and cobalt have been recovered in a single year from the
blister copper imported from the Katanga district of the Belgian
Congo.
References : -
DeLaunay, L.; Traite de Metallogenie, Gites Mineraux et Metalliferes, vol.

2, Paris and Liege, 1913, p. 601.
Beyschlag, F., Vogt, J. H. L., and Grusch, P.; The Deposits of the Useful
Minerals and Iłocks. Their Origin, Form, and Content; London, vol. 1,
1914, p. 205; vol. 2, 1916, pp. 957—962.
The Mineral Industry of the British Empire and Foreign Countries;
Imperial Mineral Resources Iłureau: War Period, Nickel, 1913–1919,
London, 1922, 1). 30.
21
GreeCE
Much serpentine rock containing small percentages of nickel and

cobalt exists in Greece and the adjacent islands, but by far the larger
reserves of nickel are found in its chromiferous nickel-iron ores.
These ores are said to contain from 0.1 to 1.2 per cent of nickle; in
some deposits are irregular stringers and pockets of ore containing as
much as 4 to 5.5 per cent of nickel (as garnierita). Nickel ores
have been mined in Thebes and Locris and shipped to Norway for
reduction.
Of the known occurrences in Greece, those of the highest grade
are on the island of Locris; this deposit is reported to contain an
ore reserve averaging 7 per cent nickel, and may in the future con
stitute a commercial source of the metal.
References:
Scott, H. K. : Chromiforous Ores of Greece and Their Utilization; Jour.
Iron and Steel Inst. No. 1, 1913, pp. 447–467.
Coleman, A. P. : The Nickel Industry, with Special Reference to the Sub
bury Region, Ontario; Canada Department of Mines, Ottawa, 1913.
pp. 117–118.
Rumbold, W. G. : Nickel Ores; Imperial Institute Monographs on Mineral
Resources, with Special Reference to the British Empire, London, 1923,
pp. 50–51. -
NEW CALEDONIA
The New Caledonian deposits containing nickel-magnesium hydro

silicates, with garnierite the predominating mineral, are next in
importance to the Sudbury deposits as a source of nickel. Nickel
was first discovered in New Caledonia in 1865, but it was not until
the close of 1874 that nickel was known to exist there in economic
quantities. In 1875 some 300 tons of nickel ore were exported: in
1876 and 1877, a total of nearly 8,000 tons, with a tenor of from 8 to
10 per cent of nickel. With the introduction of nickel steel con
sumption of nickel increased markedly, and the mines of New Cale
donia were drawn upon to a larger extent. -
In the early days of mining the nickel ores were experted mainly
to Havre, Glasgow, and Rotterdam; also as recently as 1901 as much
as 30,000 tons in one year went to the United States. In 1879 smelt
ing was introduced in New Caledonia, and during the past five
years very little ore has been exported; such nickel as was shipped
for refining and sale consisted of matte with a tenor of from 40 to 50
per cent of nickel.
The crude furnace matte goes to Havre (France), Iserlohn (West
phalia. Germany), Antwerp (Belgium), Kirkintilloch (Scotland),
and New Brunswick (New Jersey). The refinery at New Brunswick
is controlled by a subsidiary of Les Hauts-Fourneaux de Nouméa.
EXTENT OF DEPOSITs
Little literature is available as to the island's actual reserves, and

the irregular occurrence of the ore makes any estimate thereof un
certain. It has been said that the reserves of Ontario may be
measured in millions of tons while those of New Caledonia may be
measured in a few hundred thousand tons. One of the larger Cale
donian deposits produced 600,000 tons before exhaustion. So far in
22
the history of mining in this locality the rate of development of new

mines has offset the loss in production represented by work-out
In 1110°S.
In the early days the ore mined ran 10 to 12 per cent nickel; dur
ing the past few years the ore raised has graded less than 6 per
cent. There are said to be large quantities of low-grade ores which
can not at present be reduced commercially, one of the factors mili
tating against this industry being the cost of recovering the nickel
from its ores. The statement has been made that should the price
of nickel fall below 25 cents a pound New Caledonia would have
difficulty in maintaining production.
At present three companies largely control the mining industry on
the island, namely, the Nickel Corporation and La Société Miniere
Caledonnienne (Subsidiaries of the International Nickel Co.) La
Société le Nickel, and Les Hauts-Fourneaux de Nouméa.
I\eferences:
Coleman, A. P. : The Nickel Industry, with Special Reference to the Sud
º, Region, Ontario; Canada Department of Mines, Ottawa, 1913, pp.
Beyschlag, F., Vogt, J. H. L., and Krusch, P. : The Deposits of the Useful
Minerals and IRocks, Their Origin, Form, and Content; London, vol. 1,
1914, p. 191; vol. 2, 1916, pp. 950–957.
pp. 234–264.
IResources, with Special IReference to the British Empire, London, 1923,
pp. 60–64.
Mineral Resources of the United States; annual issues.
NORWAY
Before the discovery of the New Caledonian and Canadian de

posits the Norwegian nickel mines, with an annual production
approximating 200 tons of metallic nickel, were the largest pro
ducers in the world. Since the development of the two great sources
mentioned, the nickel industry of Norway has played but a minor
part in the international commerce in this metal. At times produc
tion has ceased completely; then, with improvements in technology
such as the Hybinette process, mining has been revived for a time,
to again practically cease due to the cheapness with which material
was produced in other countries.
In Norway there are about 50 known deposits; but of these only
a few have warranted mining. The ore is similar in character to the
Sudbury deposits in that it consists mainly of pyrrhotite, pent
landite, and chalcopyrite. The mine from which the largest produc
tion has been made is the Flaad, sometimes called the Ebje, in the
Satersdal district.
Previous to the World War the matte produced from the smelt
ing of Norwegian nickel ores was exported to Germany and Austria
for refining. During the war Norway's smelting and refining
capacity was expanded and domestic supplies were supplemented by
imported ores, with an annual output on a basis of 1,200 tons of
nickel. Recovery of metal from the ore has averaged about 1 per
cent of nickel, 0.7 per cent of copper, and an eighth of an ounce of
precious metal per ton (of which 95 per cent is silver and the re
mainder palladium, platinum, and gold). In 1921 the mines were
23
closed down, but were reopened in 1927 with a production for that
year of 88 tons of nickel metal and 7,612 tons of nickel ore. Returns
for 1928 are not yet available.
References:
Beyschlag, F., Vogt, J. H. L., and Krusch, P. : The Deposits of the Use
ful Minerals and Rocks, Their Origin, Form, and Content; London, vol.
1, 1914, pp. 294–297.
Royal Ontario Nickel Commission: Report and Appendix: Toronto, 1917,
pp. 264–265, 455—457.
Mineral Industry of the British Empire and Foreign Countries: Imperial
Mineral Resources IBureau : War Period, Nickel, 1913–1919: Ilondon,
1922, p. 32.
Mineral Resources of the United States, annual issues.
UNITED STATES
The United States is both the largest consumer and largest im

porter of nickel and the leading manufacturer of nickel products in
the world. One of the largest fabricating plants for nickel products
anywhere is at Huntington, W. Va.
For a time the United States was also the largest refiner of nickel,
but with the removal of the plant formerly at Bayonne, N. J., to
Port Colborne, Ontario, this country has, broadly speaking, ceased
to be a refiner of the metal, the one exception being the refinery still
in operation at New Brunswick, N. J.
Production of nickel ores of domestic origin is now confined solely
to the nickel recovered as salts in the refining of blister copper and
matte, but there is also a small production from matte from New
Caledonia.
ORE I) EP()SITS NOT NOW WORKEI)
In the past nickel was mined in several of the States. One of the
earliest workings was the Gap mine in Lancaster County, Pa.; in
1862 this mine was the greatest producer of that time, but viewed in
the light of present-day production its output would be considered
small. With the increase of imports from New Caledonia and
Canada production at the Gap ceased, and the mine now is idle.
For a while there was a production of nickel derived as a by-product
from the smelting of lead ores from southeastern Missouri.
Among the better known occurrences of nickel in the United
States are the following: Key West mine, Nevada, where nickel is
present as sulphides: the Piedmont region of Virginia, where nickel
is found at a number of places: Webster mine, in Jackson County,
North Carolina, where nickel is associated with magnesium; Gem
mine, in Fremont County, Colorado, where nickel associated with
cobalt and copper has been produced: Monte Cristo mine, near
Wickenburg, Maricopa County, Arizona, where nickel associated
with native silver ores has been noted.
IReferences:
Mineral Resources of the United States: part 1, 1915, pp. 747-757; also
annual issues.
AUSTRALIA
Small deposits of nickeliferous pyrrhotite are found in Tasmania

near the town of Zeehan. In the early part of 1914 about 3,000 tons
of ore said to have averaged 10 per cent and 5 per cent copper,
24
were mined and shipped to Germany. This property was prospected

by diamond drilling, the result of which indicated that little ore
remained in the deposit.
Nickel also occurs on the island in the form of chromiferous
nickel-iron ore, similar to the deposits of Cuba and Greece.
Reference:
pp. 280–282.
BRITISH INDIA
The deposits of nickel in Burma are of unknown importance. It

seems possible, however, that they may be similar to those in south
western China.
References:
Holland. T. H., and Fermor, L. L. : Nickel ; Records of Geol. Survey, India,
1915, vol. 46, p. 281.
Royal Ontario Nickel Commission : Report and Appendix; Toronto, 1917,
p. 275.
POTENTIAL RESOURCES
NORTH AMERICA
CUBA
As a possible future source of nickel, attention is called to the iron

chromiferous nickel deposits of Cuba, estimated to contain more than
2,000,000,000 tons of ore carrying a small percentage of nickel and
chromium and similar in type to the deposits found in the Celebes
(Isle of Sheboekoe), Netherland East Indies, in the Gold Coast,
West Africa, and in Greece.
I)OMINICAN REPUBLIC–MEXICO
In the Dominican Republic and Mexico there are occurrences of

nickel which are said to be too small to warrant development at
present.
Reference:
pp. 67–68. -
PORTO RICO
Porto Rico's nickel deposits are confined to chromiferous nickel

iron ores of the lateritic type (similar to those of Cuba) near Maya
guez; their extent has not been determined. . The content of nickel
and chrome is not so great as that of the Cuban deposits.
Reference: -
Fettke, C. R., and Hukkard, Bela: Limonite Deposits of the Mayaguez

Mesa, Porto Rico; Trans. A. I. M. E. 1918–1919, vol. 61, pp. 97–112.
SOUTH AMERICA
BRAZIL
Nickel has been reported near Villa de Livramento in the State of

inas Geraes, Brazil. The mineral found in garnierite and the
outcrop is said to contain 3.5 to 15 per cent of nickel. The extent
25
of the deposits is not known, and so far as can be ascertained they

have not been worked.
Reference:
Miller, B. L., and Singewald, J. T. : The Mineral Deposits of South Amer
ica; 1919, p. 195.
CHILE
Nickel associated with cobalt and silver has been found in the
Department of Copiapó, Province of Atacama, Chile, but there is no
record of any production. From what is known, it seems doubtful
if the nickel resources are of any magnitude.
Reference:
Henwood, W. J.: The Mining District of Chanarcillo in Chile; Trans. of
the Royal Geographical Society, Cornwall, vol. 8, 1871, p. 121.
PERU
In the Department of Cuzco, Peru, there are occurrences of nickel

of academic interest only. So far as can be ascertained there has
been no production.
Reference:
Miller, B. L., and Singewald, J. T. : The Mineral Deposits of South Amer
ica; 1919, p. 166.
EUROPE
IBEI,(;III M
There are no newly developed deposits of nickel ore in Belgium;

and, while matte and ore are imported for reduction within the
country, the amount of such imports is not always recorded sepa
rately in the official trade statistics. The Hauts-Fourneaux de
Nouméa operate a reduction plant at Antwerp where New Cale
donian ore and matte are treated.
Reference:
Mineral Industry of the British Empire, and Foreign Countries; Imperial
Mineral Resources Bureau ; War I?eriod, Nickel, 1913–1919; London,
1922, p. 27.
CZECHOSI,OVAIN I-A
The occurrence of nickel in Czechoslovakia is confined to the

mines in the vicinity of IDobsina in the Liptan Mountains. An esti
mated 1,000 tons of nickel were produced in this area during the
period 1840–1880. During recent years no output has been recorded.
References:
Phillips, J. A.: A Treatise on Ore Deposits, 2nd ed.: Iondon, 1896, p. 436.
Beck, R.: The Nature of Ore Deposits; New York, 1905, pp. 340–341.
FR.A.N. ("I,
The only deposit of nickel in France from which production has

been made is at Chalanches, Dauphine. Many years ago rich silver
ores associated with nickel and cobalt were mined, but at present
there are no known commercial nickel deposits in the country.
France is a refiner of nickel and requires for this industry the
bulk of the ore and matte exported from New Caledonia. La So
Nº.6
ciété Anonyme de Nickel, with a plant at Havre, is the most import

ant nickel smelting and refining company in the Republic; it also
controls smelting and refining works at Kirkintolloch in Scotland
and refining works at Erdington, England. The domestic produc
tion of refined nickel in France does not meet the needs of its indus
tries, and supplementary supplies thereof are imported from
Canada.
IReferences:
Statisique de l'Industrie Minérale on France et enl Algérie (1914–1918);
Ile Commerce de la France (annual).
Rumbold, W. G. : Nickel Ores: Imperial Institute Monographs on Mineral
IResources, with Special Reference to the British Empire, London, 1923.
RUSSIA
I)eposits in which nickel occurs are found in Russia near Rev

dinsk in the Urals and in the Province of Elisabetpol in the Cau
casus. Ore has been produced in the Ural Mountains and treated at
the Revdinsk smelters: for a few years prior to 1915 an annual pro
duction of 600 tons of nickel matte was maintained. The deposits
of the Caucasus are mined chiefly for their cobalt content, the tenor
of nickel not warranting its recovery.
During the past five years no production of nickel in Russia has
been recorded in available official statistics.
Ikeferences:
Turner, H. W. : Nickel Deposits of the Urals; Trans. A. I. M. E., 1914,
vol. 48, pp. 118–124.
Anonymous: Russian Nickel Deposits; Eng. and Min. Jour., Nov. 6, 1915,
p. 759.
SPAIN
Notwithstanding the fact that formerly Spain produced a small

quantity of nickel, the occurrences of the metal there may be said to
be chiefly of academic interest. Niccolite, garnierite, and nickelifer
ous pyrrhotite are found in the Province of Malaga.
Reference :
Gillman, F. : Ore Deposits of the Malaga Serpentine; Trans. Inst. of Min.
and Met., 1895–96, vol. 4, pp. 159–168.
SW Ei) EN
Sweden's nickel deposits are similar in character to those of

Norway, but are of less importance. Production of nickel in Sweden
is negligible; during the last two decades the maximum ore produc
tion in any one year did not exceed 49 tons of metallic nickel. Some
of the best-known occurrences are at Sagmyra near Falun, at Klefva
near Hvetlanda, and at Frustuna in Söbermanland.
IReferences :
Beyschlag, F., Vogt, J. H. L., and Krusch, P.: The Deposits of the Useful
Minerals and IRocks, Their Origin, Form, and Content, London, vol. 1,
1914, p. 285.
National Fed. Iron and Steel Manufacturers: Statistical Report, 1918, p. 55.
UNITED KINGDOM
Small deposits of nickel have been found in many localities in the

United Kingdom. Nickel occurs in the tin mines of Cornwall, and
27
deposits of nickeliferous pyrrhotite have been worked not far from

Iveraray in Scotland.
Notwithstanding the almost negligible domestic production of
nickel in the United Kingdom, nickel refining has been an estab
lished industry there for many years. The largest plants are those
of the Mond Nickel Co. (owning mines in the Sudbury district,
Canada) at Clydach, Swansea, Wales; the Anglo-French Co. at
Hafod Isha near Swansea; and La Société Anonyme de Nickel at
Kirkintolloch in Scotland, which company has also a plant at
Erdington, near Birmingham, England.
References :
p. 471.
Memoirs of Geol. Survey of Scotland, Sp. Rept. on Mineral Resources of
Great Britain, vol. 17, 1921.
YU"(iOSI,.\VIA
No commercial deposits of nickel ore have so far been developed

in Yugoslavia. In the Mount Avala lead mines some 12 miles south
of Belgrade there are occurrences of nickel sulphide (millerite) asso
ciated with galena; and nickel sulphide associated with zinc occurs
at Zablaka. No production of nickel from these areas is recorded.
Reference:
Wray, D. A. : The Geology and Mineral Resources of the Serb-Croat-Slovene
State; Dept. Overseas Trade, 1921, pp. 46. (5.5, and 66.
ASIA
CHINA
Nickel has been mined in China for centuries. It is produced

entirely as the alloy “paktong,” derived from smelting nickeliferous
copper ores with those of zinc. Not much information is at hand
relative to the character of the deposits, which are located in Yunnan
and Szechwan.
Reference:
Mineral Industry of the British Empire and Foreign ("ountries: Imperial
Mineral Resources Bureau; War period, Nickel, 1913–1919. Ilondon, 1922,
p. 45.
TU-Irix EY
Little is known of the extent of the nickel occurrences in Turkey.

During the World War there was an output of low-grade nickel ore
from mines at Ak-Kaya in the Vilayet of Castamuni, approximately
40 miles northeast of Angora.
Reference:
Penzer, N. M.: The Minerals of Anatolia; Min. Mag., Ilondon, vol. 21, 1919,
p. 279.
AFRICA
IbriTISII AFRICA
Nickeliferous pyrrhotite has been found in Nyasaland and the

Union of South Africa (Transvaal and Natal). However, few de
tails have been reported as to either the possibilities of production
or the size of the occurrences.
IReferences:
Mineral Industry of the British Empire and Foreign Countries; Imperial
Mineral Resources Bureau; War Period, Nickel, 1913–1919, London, 1922,
p. 14.
Rumbold, W. G. : Nickel Ores: Imperial Institute Monographs on Mineral
pp. 28–32.
Ores containing nickel occur also in many places in Rhodesia, and
from time to time deposits of economic value have been discovered,
There are, however, no records available on the production of nickel
there.
Reference:
Mineral Industry of the British Empire and Foreign Countries: Imperial
Mineral Resources Bureau; War Period, Nickel, 1913–1919, London, 1922,
p. 14.
EGYPT
The nickel-ore production of Egypt has been confined to a small

tonnage from St. John Island in the Red Sea. The ore is similar to
that of New Zealand, being a hydrosilicate. The largest developed
deposit contains an ore chute 150 feet in length and from 2 to 5 feet
in thickness, which has been developed to a depth of 120 feet. The
tenor of the ore is said to be from 6.5 to 7 per cent nickel. In the
vicinity of this deposit is a mineralized area containing impregnated
superficial patches of ore having a tenor of from 1 to 2.75 per cent
nickel. Development work has not been carried far enough to gage
the quantity of ore available.
IReference:
Iłoyal Ontario Nickel Commission : Report and Appendix: Toronto, 1917,
pp. 270–271.
M.ADAGASCAR
The most important deposits of nickel in Madagascar are in the

district of Ambohimasoa, Province of Fianarantosa. It has been
estimated that in one of the mines of this locality there are 125,000
tons of 5.5 per cent nickel ore proven and 250,000 tons of 4 per cent
probable ore.
IReferences:
Royal Ontario Nickel Commission : Iteport and Appendix; Toronto, 1917,
pp. 276–277.
Anon: Etude Succincte sur los Mines de Madagascar on 1920; Bull. Econ.
de Madagascar, 1920, pt. 1, p. 19.
RÉSUME OF SOURCES AND RESOURCES
From the standpoint of world commerce in nickel, Canada and

New Caledonia are at present the only two producing areas of im
portance. Canada is the dominating factor; and from what is known
of the Canadian reserves there seems little likelihood of any change in
the world’s major sources of supply for many years.
International trade in nickel might be altered somewhat should
the metallurgical problems involved in the utilization of the so-called
lateritic chromiferous nickel-iron ore deposits found in many places
throughout the world be solved. Whatever the change, the effect
upon consumption would be of relatively minor importance as it
would affect only the demand for nickel in certain grades of steel.
However, the keen competition of one metal with another in the
29
*d
consumption of alloys may tend to lower the price of nickel in order

to maintain and increase its use.
Countries which have produced and shipped nickel ore or matte
at some time during the past 10 years comprise Australia (Tas
mania), Austria, British India, Canada, Czechoslovakia, Germany
Śº: Greece, Italy, Madagascar (quantity negligible), New
aledonia, Norway, Sweden, and the United States.
Countries in which nickel ore is known to occur but for which
there is no record of any shipments include Argentina, Bolivia, Bra
zil, British East Africa (Kenya Colony and Protectorate), British
West Africa (Sierra Leone), Dominican Republic, Georgia Repub
lic, Greenland, Japan, Mexico, Morocco, Netherland East Indies,
Newfoundland, New Zealand, Paraguay, Persia, Rhodesia (South
ern), Russia, Southwest African Protectorate, Spain, Switzerland,
Syria, Union of South Africa, United Kingdom, and Yugoslavia.
MARKETING
The world marketing of nickel is controlled by two groups, La

Société le Nickel (Rothschilds) and the International Nickel Co.
Ltd.) (Mond Nickel Co. consolidated with the International Nickel
o.). Transactions in reference to nickel are not carried on in any
metal exchange of the world. Nickel is purchased in the various
forms in which it is marketed from agents of these two groups.
Nickel ores and matte enter international commerce in a very
limited way. The method of sale and the price paid are invariably
a matter of negotiation between buyer and seller.
Broadly speaking, the forms in which nickel is marketed are
standardized. The steel industry in the United States purchases
its requirements in 25 or 50 pound ingots, the dimensions varying
with the weight; the ingots are packed in barrels and boxes or at
times are shipped in bulk. Nickel in the form of shot or pellets
is required for the manufacture of certain alloys; these forms are
sold on much the same basis as ingots, and are packed in barrels con
taining approximately 500 pounds. Electrolytic nickel is sold in
the form of cathodes having as a rule the dimensions 2 by 3 feet by
ºn to 14, inch; the size varies according to the desire of the customer,
for which a small additional charge is made. Nickel salts are mar
keied in a finely divided state, usually packed in barrels and in glass
containers. Zº
GENERAL SPECIFICATIONS
The general specifications for commercial nickel cover three grades,

as follows:
TABLE 7.-CHEMICAL COMPOSITION OF COMMERCIAI, NICKEI.
ºf ir, l : -
Nickel Iron, , Copper, Carbon, Silicon, Sulphur, Cobalt,

(rade cºi ** * * *
maxi- maxi- -
maxi- maxi- -
maxi- t
maxi
miſſin mum mum mum mum mum mum
Per cent Per cent Per cent , Per cent | Per cent Per cent Per cent
- 0.20 0.1() 0.10 0.00 0. ()2 0.60
98.90 . 60 .25 . 25 . 15 .03 1.00
97.7 . 90 . 25 .75 . 25 . 07 1.00
30
The general requirements are that the nickel should be reasonably

free from surface oxidation and adhering foreign matter and be
furnished in cathodes, plates, pigs, ingots, cubes, or shot form as
specified by the purchaser's contract. Grade 1, however, supplies
the cathode trade only. Customarily analyses accompany each ship
ment.
In purchasing the various grades of nickel it is required that the
cathodes, plates, pigs, and ingots be separated and each grade
branded or marked; they may be shipped in bulk in sealed box
cars unless otherwise specified. Nickel shot or cubes, when loaded
for shipment, must be packed in bags, boxes, barrels, or other suit
able containers unless otherwise specified. As a rule, the containers
are marked with the grade of the material, the weight, name, and the
brand or trade-mark of the selling agency.
REQUIREMENTS FOR CASTINGS
The specification covering the marketing on Monel metal (nickel

copper alloy) castings are that they shall be uniform in quality and
condition, free from blowholes, porosity, shrinkage defects, cracks,
or other injuries defects, and shall be smooth and well cleaned before
shipment. All castings must be commercially machinable, and may
not be repaired, plugged, or welded without the consent of the pur
chaser.
Th chemical composition should approximate: Copper, iminimum,
23 per cent; nickel, minimum, 60 per cent: iron, maximum, 3.5 per
cent: aluminum, maximum, 0.5 per cent: manganese, maximum, 3.5.
per cent; carbon plus silicon, maximum, 2 per cent.
The physical requirements are for a minimum tensile strength of
65,000 pounds per square inclu, a minimum yield point of 32,500
pounds per square inch, and a minimum elongation in 2 inches of 25.
per cent.
REQUIREMENTS FOR ANODES
Nickel anodes are, as a rule, sold under the following general

specifications:
They must be made of solid metal, either cast or cut to the size
required by the purchaser; clean, and free from cracks, warps, and
ragged edges. Broken or damaged anodes are subject to rejection.
Unless otherwise specified, the anodes generally are provided with
one 34-inch hole near each of three of the four corners, to facilitate
Suspension.
The chemical requirements are: Nickel, minimum, 92 per cent;
tin, maximum, 4 per cent; iron, maximum, 4 per cent; copper, maxi
mum, 0.50 per cent; antimony and arsenic, none; other impurities,
maximum, 2 per cent.
SHOT NICKEL–NICKEL SALTS
Shot nickel must be of high grade; under ordinary circumstances

it must contain not less than 99 per cent of nickel and not more
than 0.005 per cent of other heavier metals, 0.01 per cent of sulphur,
and not more than a trace of arsenic. Generally it is put up in 1
pound packages.
31
Nickel sulphate must be equal to the accepted standard for a

chemically pure grade of NiSO,.6H.O and contain not more than
a trace of iron or copper and not more than 0.1 per cent of cobalt.
It ºnly enters the market in glass containers holding 1 pound
CaCI1.
Nickel ammonium sulphate must be equal to the accepted standard

for a chemically pure grade of NiSO,. (NHA),SO,.6H.O and contain
not more than 0.05 per cent of iron, 0.10 per cent of cobalt, and not
more than a trace of copper. Usually it is shipped in glass
containers.
OTHER TRADE FORMS
Some of the other forms in which nickel enters the trade and is
sold under specifications are: Nickel-copper alloy billets for re
forging; manganese-nickel rods for boiler, anchor, and brick bolts:
mickel-silver (German silver) castings and wire; and nickel-silver
and copper-nickel alloy rods, bars, shapes, plates, sheets, and strips.
In Europe, besides the forms mentioned, nickel is marketed in
cubes and rondelles. Rondelles are disks roughly 1% inches in
diameter and 34 inch thick and weighing about 4 ounces; they are
in largest demand in China. The cubes are sold principally in
Europe.
Both in the marketing of nickel and in the consumption of virgin
metal an increasingly important part is being played in the United
States by the recovery or reclamation of so-called secondary nickel.
This recovery as metal or in nonferrous alloys and salts now ap
proximates 3,000 short tons annually.
PRICES
During the past five years prices for the various grades of nickel
have changed but little. Ingots have sold around 35 cents a pound,
shot at 36 cents, electrolytic nickel (99.90 per cent) at 35 cents. For
1928 the London price remained constant at £172 12s. per long ton;
in 1929 it ranged from £170 to £175.
References:
Traité Général de Commerce (les Minerals and Métaux, 2nd ed.: Paris,
pp. 767–779.
Spurr, J. E., and Wormser, F. E.: The Marketing of Metals and Minerals;
1925, pp. 136–143.
United States Army and Navy Metal Specifications.
Mineral Resources of the United States, Secondary Metals; annual issues.
O
...
- - -- - R. P. LAMONT, Secretary
... BUREAU of Foreign ANd DOMEstic commerce

REG EIVED *~~~Director
AP; 19 1930
O.S. U. LIBRARY
INSTALLMENT SELLING
OF AUTOMOBILES
IN 00EANIA, ASIA, AND AFRICA
United StAtes
WASHINGTON : 1930
For sale b
y the Superintendent of Documents, Washington, D. C. - - - Price 10 cents
FOREWORD
The value of United States automotive exports during 1929 to

Oceania was $56,548,958, to Asia $61,897,739, and to Africa $30,
562,115, a total of $149,008,812 and an increase of nearly 15 per cent
over the total of $129,816,000 for 1928. In those continents the
American vehicle predominates, accounting for nearly four-fifths
of total registrations in both Oceania and Asia and approximately
two-thirds in Africa.
The system of installment selling is responsible in a great measure
for the steady annual increases in registrations in those as well
as in other countries of the world. It has been established for some
time in most countries; in a few instances it has been in use for
only a short time but is already becoming a vital factor in the sale
of motor vehicles.
This publication is the third and last of a series compiled by
the automotive division, with the assistance of the commercial laws
division, of the Bureau of Foreign and Domestic Commerce, pre
senting a survey of financing facilities and practices throughout
the world. The first, Trade Information Bulletin No. 550, covered
Europe; the second, Trade Information IBulletin No. 649, discussed
Latin America. Additional and more specific information on the
markets covered in this bulletin will be furnished to qualified United
States exporters on application to the bureau, either direct or
through its district and cooperative offices.
- Bureau of Foreign and Domestic Commerce.
APRIL. 1930.
(II)
INSTALLMENT SELLING OF AUTOMOBILES IN
00EANIA, ASIA, AND AFRICA
Based on Reports from Oversea Representatives of the Departments of State and Commerce
COUNTRIES COVEREI)
Oceania : Asia—Continued.
Australia. Philippine Islands.
New Zealand. Siam.
Asia: Africa :
Arabia. Angola (including Belgian Congo).
British Malaya. Algeria.
China. British East Africa.
Chosen. Egypt.
French Indo-China. French West Africa.
India. Madagascar.
Iraq. Morocco.
Japan. Tunisia.
Netherland East Indies. Union of South Africa.
Persia.
GENERAL SUMMARY OF PRACTICE
The number of automobiles in operation in Oceania. Asia. and

Africa on January 1, 1930, was approximately 1,617,400, having
increased about 16 per cent over the total of 1.395,600 in use on
January 1, 1929. Of the former number, 788,775 are registered in
Oceania, 509,258 in Asia, and 319,370 in Africa. The increase in
registrations during 1929 was greatest in Asia, amounting to
slightly more than 22 per cent, while the percentages of increase
in Africa and Oceania were 14.5 and 11.5, respectively. One of the
chief factors in the steady annual increases in sales of automobiles
is, of course, the system of installment selling, widely adopted even
in primitive countries.
TIME SALES
Approximately 75 per cent of all automobiles in Australia are sold

on the installment plan; the proportion of high-priced cars so sold is
60 to 65 per cent, while the percentage for smaller cars is about 80.
In New Zealand the average is approximately the same. In both the
ratio of time sales is as follows: New cars, 70 per cent: used cars, 75;
new and used trucks, 80; and new and used busses and taxis, 85.
The number of defaults resulting in repossessions in Australia is
estimated at 1 per cent, an average as low as that found in any
other country with the same volume of automotive sales. The per
(1)
2
centage in New Zealand is almost equally as low, 1 per cent for new
-cars and about 5 per cent for used vehicles.
The installment-selling system is firmly established in Asia, even
in the relatively undeveloped countries where the total annual sales
are comparatively small. British Malaya and the Philippine Islands
have the highest proportion of installment sales, the figure for the
latter being 95 per cent for all classes of vehicles, while the propor
tion covering 13ritish Malaya is 90 per cent of cars, 95 per cent of
trucks and busses, and 98 per cent of taxis.
In China three-fourths of the motor vehicles are sold on time,
despite the unsettled conditions which necessitate extreme caution on
the part of the dealer in the extension of credit, the recurrent inter
nal disorders, and particularly the privileges of extraterritoriality
enjoyed by nationals of several great powers in China. Installment
sales account for 75 per cent of the new cars in Siam, but only half
of the used cars. Iraq comes next in Asia, with 70 per cent of cars, 95
per cent of taxis, and half of trucks.
About 60 per cent of vehicles in the Netherland East Indies are
sold on time; in India the percentage of cars is 55, trucks and busses
70, and taxicabs 100. Installment selling is fast becoming an im
portant factor in the Japanese automotive market, but there are as
yet no definitely established methods of sale, payment, contracts,
etc.; hence, the figure of 50 per cent as the proportion of installment
sales forecasts a higher proportion in the very near future. A lack
of facilities for selling on the installment plan in Indo-China is
responsible for the small number of vehicles sold on time in that
country; estimates place the proportion for cars at 30 to 40 per cent
and for trucks at 5 to 10 per cent. The proportion in Persia was
not reported.
The percentage of repossessions in many countries of Asia is gen
erally higher than in Oceania. Arabia, India, and French Indo
China have the lowest rate of defaults—1 per cent in the first two,
one-half of 1 per cent in the latter. The proportion in Japan was
not reported, but it is believed to be low. While no figures covering
defaults in British Malaya and Chosen are available, they are re
ported as “low” and “very few,” respectively. The figure for the
Philippine Islands runs between 2 and 3 per cent. No exact figure
covering the Netherland East Indies is obtainable, but it is reported
as small, much less than 5 per cent. This estimate does not take
into account the practice, peculiar to the Indies, of making tem
porary repossession in order to force the purchaser to make his
payments—a common procedure. In China and Siam about 5 per
cent of all vehicles and in Persia about 6 per cent of cars and 3 per
cent of trucks and busses are repossessed. The estimates covering
Iraq are highest for all of Asia-cars and trucks 10 per cent, busses
and taxis 15 per cent—and are believed to be the best available; how
ever, it might be mentioned that estimates among the most reliable
members of the trade vary; one dealer estimated 10 to 15 per cent
for all types and another put the figure as high as 18 per cent.
In the various countries of Africa a very high percentage of auto
mobiles is, as a rule, sold on the installment plan. Egypt probably
sells more vehicles on time than any other African country, the per
3
centage of cars being 90 and of trucks, busses, and taxis 100. Mada
gascar reports that 95 per cent of its automobiles are sold on time,
despite the fact that installment selling in that country is largely a de
velopment of the past two years. The ratio of time sales in Algeria—
new cars 85 per cent, new trucks, busses, and taxis 99, used cars of
all types 40—is considered remarkable in view of the fact that the
legal standing of installment contracts is somewhat uncertain, such
contracts not being expressly provided for by the French law obtain
ing in that country and the trade having to rely on the civil code,
providing that a sale can be made with conditions, and being forced
to resort to a roundabout form of hire-purchase contract, which,
strictly, is not recognized. The estimate of the number of install
ment sales in Tunisia is placed at 92 per cent. In Morocco the per
centage is also high, 90 for all types of cars in the French and inter
national zones, and 80 for trucks and busses, 75 for cars, and 100
for taxicabs in the Spanish zone; the figures for the French zone,
however, are best estimates, while those covering the other zones are
the opinion of one reputable dealer. The estimate for British East
Africa likewise had to be based on the opinion of principal motor
car dealers in Nairobi, which was 33% to 70 per cent, but it is be
lieved that the true proportion is around 60 per cent. In the Union of
South Africa approximately 50 per cent of cars and 30 per cent of
trucks are sold on time. French West Africa has not widely adopted
the installment plan; in fact, the lowest proportion of time sales is
found there by reason of the fact that the market is limited to a
relatively small proportion of the population, which is able to pay
cash for its automobiles; estimates place the percentages for cars at
10 and for trucks at 15.
While the system of selling automobiles on the installment plan is
generally justified by a low percentage of defaults resulting in repos
session, in several countries the figures indicate that credit is often
being extended perhaps unwisely; moreover, in some instances, re
posession, while possible, may be considered impracticable, because
of either the large expense incident thereto or the fact that dealers
are hesitant to test in the courts the validity of contracts. In Al
geria, for example, the estimate of repossessions is less than 1 per
cent, but, contracts there being of somewhat doubtful validity,
dealers are desirous wherever possible of compromising with the de
faulting purchaser rather, than of inforcing strictly their rights
in the courts. Likewise, the percentage of repossessions in Angola
and in Belgian Congo is practically nil, owing to the fact that legal
recourse is excessively expensive: the solution lies in a compromise,
even at a considerable loss, instead of a suit. French West Africa
and Tunisia report that the number of defaults is negligible. Mada
gascar also reports its percentage as negligible, but attention is called
to the fact that contracts provide that the dealer and the purchaser,
in case of default, must agree on a price at which the dealer shall
take back the automobile, or, if such agreement is not possible, at
an appraised value. Practically all cases of defaults are thus settled,
with strict repossession never resorted to. -
In the French and Spanish zones of Morocco the percentage is

very small, estimated at two-thirds of 1 per cent; however, for Tan
4
gier it has been estimated at 30 to 35 per cent, but this figure, despite
the relatively larger number of repossessions owing to the keen com
petition and the necessity of dealers’ granting unwarranted easy
terms, is believed to be exaggerated. The matter of repossession in
Africa is probably most satisfactory in the Union of South Africa,
where the proportion is 1 per cent. Estimates covering British East
Africa vary from 2 to 4 per cent, with an average probably at 3 per
cent. Probably the most unsatisfactory conditions in this respect are
found in Egypt, where estimates place the percentage of defaults
resulting in actual repossession at 15, and dealers state that probably
60 per cent of time sales result in defaults and subsequent compro
mise effected by the dealer with the purchaser.
CONTRACTS IN USE
The hire-purchase agreement is used practically exclusively in

both Australia and New Zealand. In this form of contract the owner
agrees to rent the vehicle to the hirer or lessee (in reality the pur
chaser) for a certain period, and stipulates a certain number of
installments of rent: after the last one the lessee has the option of
purchasing the car for a nominal sum, possibly no additional sum at
all. Thoughout this bulletin this form of contract will, unless other
wise qualified, be so understood. To minimize the possibility of
courts in some countries conceiving such contracts as merely simu
lated, however, title should not be declared under them to be auto
matically transferred on this final payment; the lessee should be
required first to exercise his option and thus place the lessor or
seller under obligation to convey title.
The hire-purchase contract is also used exclusively in four coun
tries of Asia—British Malaya, India, the Netherland East Indies,
and Siam. It is also used, but not exclusively, in French Indo-China;
dealers there often use a simple sales contract wherein title evidently
passes immediately to the purchaser. There is no standard form in
Japan, the greater number of sales not being covered by contract,
title passing immediately and promissory notes being given for the
deferred payments. Sometimes passenger cars are sold under some
sort of conditional-sale agreement; the hire-purchase agreement, too,
is often used.
The conditional-sale agreement is used practically exclusively in
China, Chosen, and Persia; it is customarily used in Arabia. This
form of contract will be understood, unless otherwise qualified, as
an agreement calling for a specified down payment, with the re
mainder usually divided in equal monthly installments (including
finance and other charges) and stipulating that title remains in the
seller until final payment, when it automatically vests in the pur
chaser. So long as the purchaser is not in default, the seller can not,
of course, avoid the contract or prevent final passage of title in ac
cordance therewith. Whether the seller will prevail, however,
against innocent third parties who have purchased without knowing
of the original condition, or against trustees in bankruptcy, is not
settled in every country. - - -
An important distinction must be kept in mind between the condi

tional-sale and hire-purchase contracts; in the former the purchaser
5
is bound contractually to complete the installment payments, whereas

in the hire-purchase agreement he may usually free himself from its
terms by refusing to continue to pay the rental installments, in which
case the owner is entitled generally to immediate possession. In
other words, the hire-purchase contract is binding on the lessor but
not on the lessee except so far as the rental payments become due
and the car has not been repossessed by the seller. The distinction
sometimes may assume marked importance in countries where the
hire-purchase contract must carry this provision or else be considered
an absolute sale, transferring title immediately and allowing the
purchaser to give good title to an innocent third party. This, how
ever, is a matter of interpretation by courts in the various countries.
In Iraq installment sales are frequently made by a simple sales
contract, title passing immediately on a down payment and the
balance being cared for by promissory notes. The chattel mortgage
is also used there (called, however, a sale contract); it usually pro
vides that the title at the time of the sale is vested in the purchaser,
who mortgages it back simultaneously, thereby giving a lien until
payment of the final installment, when the mortgage is automatically
liquidated. In the Philippine Islands the chattel mortgage is exclu
sively used. While the foregoing definition of the chattel mortgage
also applies in the Philippines, the reader is referred to the division
of commercial laws of the Bureau of Foreign and Domestic Com
merce, which has on file, for loan to interested firms, a copy of the
chattel mortgage law of that country.
In Africa the hire-purchase agreement is used in four or five
countries. It is customarily used in Angolo, but there is in that
country no uniformity in the terms exacted, while the legality of
the contract is somewhat doubtful and recourse to legal action is
to be avoided. Conditions in Algeria are somewhat similar. Some
times the agreement has the characteristics of the conditional sale:
installment contracts are not provided for by French law obtaining
in Algeria, the civil code merely setting out that a sale can be made
with or without conditions. Hire-purchase agreements are not
recognized as such but are used in effect in specially drawn agree
ments; however, all installment contracts are reported to be of doubt
ful legal validity in Algeria.
Practically all installment sales in British East Africa are covered
by the hire-purchase contract; it is used also in most cases in Egypt,
but the conditional-sale agreement is occasionally employed. The
hire-purchase contract is also used in practically all cases in the
|Union of South Africa.
In Madagascar and Tunisia the conditional-sale agreement is used
almost exclusively (one dealer in Madagascar uses the hire-pur
chase). It is also used in practically all cases, in the Spanish and
international zones of Morocco, but in the French zone most sales are
made on a loose basis without formal contract, promissory notes
being given to cover the deferred installments. Promissory notes
are also used in the new installment sales made in French West
Africa, no formal contract having yet been developed.
6
DOWN PAYMENTS REQUIRED
A down payment of 33% per cent is customary in Australia and

New Zealand, but occasionally, in the latter, trucks are sold for
one-fourth down.
Of the Asiatic countries under review Persia exacts the largest
initial payment, about 50 per cent for all classes of vehicles. The
down payment in Japan varies from 25 to 50 per cent, the average
being around 40 per cent. Estimates covering China and Iraq vary
from 25 to 50 per cent; in cases where vehicles are not so well
known or established a down payment of one-fifth is often accepted
in Iraq. In Siam the initial payment, for both new and used cars,
is usually 33% per cent; occasionally, for used cars, up to one-half
is exacted. Dealers in British Malaya and in India require one-third
for new cars and 40 to 50 per cent for used cars. The figure for
Chosen varies from 30 to 35 per cent; in French Indo-China, from
25 to 33%; in the Netherland East Indies, 30 for new cars and
taxis, 40 for used cars and taxis, and 25 per cent for trucks and
busses. For new cars in the Philippines the percentage runs from
one-fifth to one-third, and for new and used trucks and busses from
one-fifth to one-fourth. Dealers in Arabia are more lenient than
those in any other country under review, requiring an average
initial payment of only 10 per cent.
In Africa the highest initial payment is exacted by dealers in
Angola, who usually get 50 per cent at the time of the sale. Tunisia.
and British East Africa require in practically all cases one-third
down. French West African dealers require from one-third to one
half; one-third is required in Egypt for new and one-half for used
cars. A smaller, down payment is allowed in many other countries.
The percentage for Algeria varies between 20 and 25, but even more
lenient terms are possible. In Morocco, dealers in the French zone
require from one-third to one-fourth for all classes of vehicles, and
in the international and Spanish zones the figure for new cars varies
from one-fifth to one-fourth, and for trucks, busses, and taxis it is
one-third.
In Madagascar the down payments sometimes run as low as 15
and as high as 50 per cent. In the Union of South Africa they are
reported as running from 25 per cent upward.
CREDIT PERIODS
In Australia the average credit period in the case of new cars is

18 months; 12 for used cars. In New Zealand 18 months are allowed
for cars and taxis and 24 for busses and trucks.
A fairly conservative credit period is allowed in the countries of
Asia. The longest term is extended by dealers in Arabia, an average
of 16 months. In China the time varies from 6, 12, and 18 months.
A long term is also granted in the Philippines, where the dealers
customarily allow 12 to 18 months. Dealers in the Netherland East
Indies usually allow 12 months for cars and 18 for trucks and busses.
In Siam the period runs from 10 to 12 months. In Iraq it varies
from 7 to 11 months (an average probably of 9), but often up to
18 months are allowed. In British Malaya the figures are 12 months
7
for new and used cars and 9 to 12 for trucks; in India, 12 months
for all types. Much shorter periods are the rule in the remaining
Asiatic countries. Japanese dealers allow from 6 to 8 months, some
times 12; the civil code of Japan limits sales of movables to 6 months,
but an extension is possible on application to the proper authorities.
In Persia the period runs from 6 to 8 months for cars and 2 to 4
for trucks!and busses; in Chosen, 3 to 6; and in French Indo-China, 6.
A conservative credit period is also the rule in many African
countries. The longest terms, those allowed in the Union of South
Africa, are 12 to 24 months. In Tunisia 12 to 18 months are al
lowed. In the international and Spanish zones of Morocco the
period likewise runs from 12 to 18 months; in the French zone it is
usually 12, but occasionally an extension of another 12-month period
is made. Dealers in Egypt allow 12 to 15 months for new and only
8 for used vehicles.
The usual period in Algeria and British East Africa is 12 months,
but in the former it is not uncommon for as many as 24 months to
be granted. Madagascar limits the credit period to 12 months, with
terms ranging between 3 and 12 months. The practice in French
West Africa is to hold credit sales down to 3 or 4 months. In Angola
the period is usually 3 months, but one dealer is reported to allow as
many as 6.
FINANCE CHARGES
A flat rate is the customary financing charge in both Australia

and New Zealand. In the former it averages 6% to 8 per cent. This
kind of charge is usually a percentage of the total amount outstand
ing after the down payment, differing from the regular interest-only
charge in that the flat charge is figured on the total amount out
standing after the down payment, and a lump sum immediately ar
rived at is spread in equal amounts over the monthly installments.
The finance charge, of course, is the same for each month, as dis
tinguished from the decreasing monthly interest charge, which is
figured separately for each installment on the outstanding balance,
the interest charge decreasing as each payment reduces the balance.
The flat rate is also the usual finance charge in Arabia (10 per
cent), in India (10 per cent), in the Netherland East Indies (9 per
cent), and in Siam (7 per cent). In British Malaya it is a flat
charge if the car is not insured, and interest only, usually at 6 per
cent, if the car is insured. In Persia it may be a flat charge or
interest only at 8 to 20 per cent. Interest only is the customary
charge in China (10 to 20 per cent), in Chosen (10), in French Indo
China (8 to 9%), in Iraq (12), in Japan (7 to 12, with an average
probably of 9), and in the Philippines (12 per cent).
The usual charge in Algeria and in Egypt is a flat rate (not more
than 10 per cent). It may be either a flat or an interest-only charge
in the Union of South Africa. In the following countries an inter
est-only charge of about 10 per cent is customary: Angola, British
East Africa, the French zone of Morocco, and Tunisia. Interest is
charged in French West Africa, and at 12 per cent in Madagascar,
but a few dealers accept as low as 8 per cent. The nature of the
finance charge in the international and Spanish zones of Morocco
is not reported.
102723–30—2
8
INSURANCE
All-risk insurance (against fire, theft, collision, and third-party

liability) is compulsory in Australia. Protection is compulsory in
New Zealand covering fire, theft, and collision.
Compulsory insurance is the rule in many Asiatic countries, but
in some it is not required and in some cases probably is not available.
It is not compulsory in Arabia, Iraq, or the Philippine Islamds. All
risks are required to be insured against, as a rule, in British Malaya,
China, India, French Indo-China, Japan, and Siam. Protection
covering fire, theft, and collision is occasionally required in sales of
for-hire vehicles. In the Netherland East Indies the dealer must
insure for the protection of the finance company, but it is optional
with him whether purchaser must insure. In Chosen the purchaser
must insure against fire only.
All-risk policies are compulsory also in the following countries of
Africa: Algeria, British East Africa, Egypt, Morocco (interna
tional and Spanish zones only), and the Union of South Africa.
None is available in Angola. It is not required in French West
Africa or in the French zone of Morocco. The fire, theft, and lia
bility features are required in Madagascar; fire, collision, and
liability in Tunisia. -
The purchaser is required to pay the premium in full at the time

of sale in British Malaya, Chosen, French Indo-China, Japan, the
Netherland East Indies, Siam, Algeria, Egypt, Madagascar, and the
international and Spanish zones of Morocco. It is paid at the time
of the sale or may be spread over the credit period and included in
finance charges in Australia, China, India, British East Africa, and
the Union of South Africa. In New Zealand it is the practice to
include the premium in the finance charges.
The finance company in both Australia and New Zealand usually
places the insurance and receives a commission therefor. Occasion
ally in Australia the dealer may place it, in which case he receives
a commission. Incidentally, the profit from this phase of the business
is such that comparatively low financing charges are made possible.
Insurance is usually placed by the dealers, who receive a commis
sion, in British Malaya, China, the Netherland East Indies, and
Siam. The dealer acts as insurance broker in the Philippines and
robably receives a commission. In Chosen, French Indo-China, and
ersia the purchaser usually places the insurance himself. It is not
known whether the dealers in Japan act as brokers or whether the
purchaser acts independently in the matter. The finance company
so acts in India.
In Algeria the finance company usually places the insurance and
receives a commission; the dealer does so himself, of course, when he
does his own financing. In Pritish East Africa either the finance
company or the dealer places the policy and receives compensation.
The dealer usually, ºf the finance company occasionally, handles
the insurance in Egypt, the one placing it, naturally, receiving the
commission. Dealers in Madagascar usually place the policy and
receive the commission, but no restrictions are placed on the pur
chaser in his choice of companies. In the international zone of
Morocco one dealer acts as broker and receives a commission; in the
9
Spanish zone the purchaser evidently acts independently. The

purchaser in Tunisia likewise chooses his own insurance company.
Occasionally in the Union of South Africa the dealer acts as
broker for a commission.
Finance companies in China and in the Union of South Africa
customarily insure themselves against default or conversion. Such
insurance is not customary, in most cases not available, in the other
countries covered in this publication.
REPOSSESSION
The dealer usually effects repossession, resells the automobile, and,

as between himself and the finance company, if one finances him,
bears any deficit resulting from such resale in New Zealand, Arabia,
British Malaya, Chosen, French Indo-China, Iraq, Japan, the
Netherland East Indies, Persia, the Philippines, Siam, Angola, Al
geria, French West Africa, Madagascar, the Spanish zone of Mo
rocco, Tunisia, and the Union of South Africa. Legally repossession
is not valid in the French zone of Morocco, but occasionally the
courts have, nevertheless, allowed a procedure which has permitted
the dealer, after the expiration of a time limit set by the court, to sell
the vehicle. Repossession is not legally sustained in the interna
tional zone. Dealers in India effect repossession, sell, and bear any
deficit where they are financed by a subsidiary of the manufacturer;
if they are financed by local concerns, without recourse, the latter
repossesses, the dealer sells, and the finance company bears the
deficit.
In Australia the finance company repossesses and turns the car
over for resale to the dealer, who is liable for any deficit resulting
from such resale. The dealer or the finance company may repossess
in China, but the dealer sells and is liable for any deficit. In British
East Africa either party may repossess and sell, but the one who
so acts must bear the deficit. In Egypt the finance company re
possesses and resells, but the dealer suffers any deficit.
The purchaser, in turn, is usually liable to the dealer for such
deficit in New Zealand, Arabia, British Malaya, India, China, Chosen
(where sale is public and authorized by a court). Iraq, the Philip
pines, Madagascar, the Union of South Africa, and probably French
Indo-China and Japan. In the Netherland East Indies the pur
chaser is legally or technically liable, but owing to certain difficulties
in the way of enforcing the dealer's right the dealer usually resorts
to compromise. . The same condition obtains in Siam. In Egypt
the purchaser is liable usually, but the contract may provide
that all previous payments are liquidated damages, in which case
the purchaser would not be liable for a deficit and, conversely, not
entitled to any excess resulting from the resale. The liability of
the purchaser in this respect is not reported in French West Africa
and in the Spanish zone of Morocco. He is not liable in Australia,
Persia, Angola, Algeria, British East Africa, and Tunisia.
The purchaser, on the other hand, is entitled to receive any excess
in the sale of a repossessed automobile where the amount realized
exceeds the debt in New Zealand, India, Iraq, Japan, in practice
10
(though not legally) in the Netherland East Indies, in the Philip- .

pines, Angola, Egypt (if the contract does not call for liquidated
damages to include all previous payments), Madagascar, and proba
bly in the Union of South Africa and French Indo-China. The
practice in Arabia, British East Africa, French West Africa, and the
Spanish zone of Morocco is not reported. The purchaser is not
entitled to it in Australia, British Malaya, China, Persia, Siam,
Algeria, and Tunisia.
PROVISIONS IN CASES OF BANKRUPTCY OF BUYER
Automotive dealers in Australia, in New Zealand, and in all but

one of the countries of Asia are protected and may repossess the
automobile where the purchaser becomes bankrupt before completing
his installments. Repossession from the trustee in bankruptcy is
permitted in Japan, however, only where the seller has actually re
tained title, but most transactions pass title immediately on sale.
The only country in Asia that does not protect the seller in this
respect is French Indo-China.
The situation in Africa, on the other hand, is somewhat different.
The seller prevails over the trustee in British East Africa, Madagas
car, the Spanish zone of Morocco, Tunisia, and the Union of South
Africa. He comes in as a general creditor, however, in Angola, Al
geria, French West Africa, and the French and international zones
of Morocco. Individuals or private citizens can not become bank
rupts in Egypt.
UNAUTHORIZED SALES TO THIRD PARTIES
The position of the seller where the purchaser, before completion

of installment payments, sells to an innocent third party is not
quite so favorable as in bankruptcy cases in Asia. The seller may
repossess from such innocent purchaser in Australia, New Zealand,
Arabia, India, British Malaya, China, Persia, the Philippine Islands,
and Siam. He prevails in French Indo-China in the case of an inno
cent purchaser while he does not repossess from a trustee in bank
ruptcy. On the other hand, the innocent purchaser prevails over the
seller and keeps the automobile, if he bought without notice, in
Chosen, in Japan, and apparently in Iraq. In the Netherland East
Indies repossession from an innocent purchaser is possible only where
he was negligent in satisfying himself that the seller was the actual
OWiler.
In Africa the seller prevails and repossesses from an innocent

purchaser in Angola, British East Africa, the Spanish zone of Mo
rocco, Tunisia, and the Union of South Africa. The innocent pur
chaser prevails in Algeria, Iºgypt, French West Africa, Madagas
car, and the French and international zones of Morocco.
The purchaser is criminally liable in Australia and in India if he
sells the automobile without authority before completing his install
ment payments; he is not criminally liable, however, if he takes the
car out of the State or country without authority. In the following
countries criminal liability arises for both unauthorized sale and re
11
moval from the country: New Zealand (probably), Arabia, China,

Chosen, French Indo-China, Iraq, Japan, the Netherland East In
dies, the Philippine Islands, Algeria, British East Africa, French
West Africa, Madasgascar, Tunisia, and the Union of South Africa.
Criminal liability does not attach in British Malaya, Persia, or Siam.
Whether there is such liability in Angola, Egypt, or the Spanish zone
of Morocco is not reported. It is doubtful if the purchaser would be
so liable in French or international zones.
REGISTRATION OF CONTRACTS
Registration of contracts, in order to be binding on third parties, is

required only in Western Australia, British East Africa, the Span
ish zone of Morocco, and Tunisia. Installment contracts are not
binding, whether registered or not, on third parties in Chosen, Iraq,
Japan, the Netherland East Indies, Algeria, Egypt. French West
Africa, Madagascar, or the French or the International zone of
Morocco. They are binding on third parties, but need not be regis
tered, in New Zealand, Arabia, British Malaya. China, India, Persia,
Siam, Angola, and the Union of South Africa. The requirement
as to registration is not reported for French Indo-China or the
Philippine Islands.
BANKING FACILITIES FOR DEALERS
Banks in Australia and in New Zealand do not care to handle auto

mobile paper. In Australia they rarely discount it, but occasionally
accept it as collateral. New Zealand banks will discount it occa
sionally, for a period usually of four months, where the companies
are considered particularly strong.
In Asia only three countries are reported to favor such paper.
French Indo-China banks readily accept it at rates varying from 8
to 9% per cent; institutions in Iraq and the Netherland East Indies
readily, handle it at rates of 9 and 6 per cent, respectively. Banks
in British Malaya, Chosen, India, Japan, Persia, and Siam in prac
tically every case refuse to discount, those in Arabia are reported
to accept it only rarely, those in China not readily, while in the Phil
ippines automobile paper is not discounted but is occasionally ac
cepted as collateral.
Banking facilities in Africa, on the other hand, are slightly better
for the automobile dealer. Ibanks in Angola readily discount auto
mobile paper, usually at 10 per cent, in Algeria readily at 5% per
cent, and in Tunisia at 8 per cent. In Madagascar and in Morocco
banks customarily discount. In the Union of South Africa they
occasionally do.
FINANCE COMPANIES
There are relatively few finance companies in Asia and in Africa;

and since banks in many cases frown on automobile paper, the dealers,
of course, have to carry it themselves. In Australia and in India
only a few have to finance themselves; many do in New Zealand.
Dealers in Arabia, British Malaya. Chosen. Japan. Persia, and Siam
12
must, usually, carry their paper. In other Asiatic countries they

finance themselves to a great extent.
In French West Africa dealers have no banking facilities nor
finance companies available. In other African countries dealers
often carry their own paper, but for the stronger companies there
are either banking facilities or finance companies.
Dealers in Australia and New Zealand customarily guarantee their
paper to the finance company and contract to repurchase and resell
the repossessed automobile. Such a contract is usually entered into
in China, the Netherland East Indies, the Philippines, Algeria,
British East Africa, Egypt, and the Union of South Africa. If the
finance company in India is a manufacturer's subsidiary, the dealer
guarantees the paper and contracts to repurchase and resell; if it is
a local company, the dealer does not assume this liability. There are
few, if any, finance companies in the other countries covered by this
report.
INDORSERS
Indorsers are not usually required by dealers in Australia, New

Zealand, British Malaya, French Indo-China, the Philippine Islands,
Algeria, British East Africa, French West Africa, and Madagascar.
It is customary, on the other hand, for dealers in Chosen and Japan
to demand two signatures. Indorsers are often required in Arabia
and Siam, China (sometimes), India, the Netherland East Indies,
Angola, Tunisia, and the Union of South Africa. The requirement
in Persia and in Morocco is not reported.
EFFECT OF IMPROVED CREDIT FACILITIES
With but three exceptions, there are no financing facilities in any

country not as fully available to dealers in American automobiles as
to dealers in European vehicles. In these three cases, one in Algeria
and two in Egypt, moreover, the effect on American dealers is negli
gible. On the other hand, dealers in American automobiles fre
quently have facilities not available to European dealers.
Improved financing facilities seem to be needed in only a com
paratively few countries. Australian dealers feel that if a better
plan for wholesale financing were developed there would be encour
aging effect on the sale of American cars. Finance companies in
New Zealand seem to be assisting dealers, but better facilities might
result in increased sales. The present facilities seem to be entirely
adequate in Arabia, British Malaya, India, the Philippine Islands,
Siam, Angola, British East Africa, French West Africa, Morocco,
and the Union of South Africa. In some cases, owing to the attend
ant increase in risk, improved facilities are inadvisable. Sales in
Iraq, for instance, might increase as a result of a better financing
system, but the percentage of defaults would increase in proportion.
The same condition is true in Egypt; dealers feel that defaults,
especially in the low-price market, would increase correspondingly
with improved facilities. On the other hand, dealers in Egypt feel
they should be given longer credit terms by American manufacturers
in order to place them on an equal footing with European automobile
13
dealers, whose funds are not of necessity tied up so long in cars in

transit. Reports from Tunisia indicate that more adequate install
ment facilities would probably not be compatible with good business.
On the other hand, better facilities resulting in lower interest
rates would, it is believed, increase sales of American cars in China.
In Chosen sales would doubtless increase, but the difficulty lies in
utting, a plan for improved facilities into successful operation.
Sales of the low-priced class of both French and American vehicles
in French Indo-China and sales of all classes in Japan would be
stimulated by such facilities. Small dealers in the Netherland
East Indies would benefit somewhat. It is reported that sales would
be increased fully 50 per cent in Persia, but that defaults would
increase proportionately. Sales in Algeria, it is reported, would
increase at least 40 per cent if satisfactory legal protection could be
given the seller, installment contracts, as has been seen, not being
given a definite legal status. Dealers in Madagascar feel that facili
ties similar to those available in the United States and in Europe
would result in a 100 per cent increase in sales of all kinds of auto
motive vehicles.
SUMMARY
of
TERMS
PERCENTAGEs
AND
For
INSTALLMENT AND
SALES
REPoSSEssion
IN
OCEANIA,
ASIA, AFRICA
AND
|
Country repossessions
cent
Per Kind
of
contract Average
cent
per
down
pay
-
period
Average
install
of
Inent
i ment,
months
-
OCEANIA
.Australia. used
18,
New
12.
Zeala
New used
70,
cars
75, taxis
and
Cars
busses
18,
new
used
and
80,
trucks 24.
trucks
new
busses
used
and
taxis
85.
ASLA
Arabia.-------------------
16.
Malaya.
.British Cars
and
trucks
90,
busses, used
and
New
-
95,
cars
trucks
12,
taxis
98. 9
12.
to
China 75
18.
t
6 o
35----------------
to
30 - 3
6.
to
--
33%,
to
25
trucks
none
Cars6.
busses
known,
not
taxis tract.
none.
("ars
and
trucks
55,
lbusses Hire-purchase--------------- used
33%,
cars
40
New 12. §
-
70,
taxis
100. to
trucks,
50,
and
busses
taxis
40
50.
to
.--Iraq---
- 50,
15,("ars
70,
95,
trucks
Cars
taxis
10,
1o.C
mortgage
rhattel
50----------------
to
20
prom- ------ occasionally
11,
7to
18.
buSSes
none.
busses
noue.
issory
notes.
known-----------
50---------------
Not
*)---------------- ------
-----------
40---------------------------
------------ o
8
6
8.
to
-----
60.
New
taxis
and
cars
30,
used trucks
12,
Cars
busses
and
18.
-
-
-
-
cars
taxis
and
40,
trucks
and|
busses
25.
.
Persia. reported.--
Not
...
-
trucks
6,
Cars
busses
and
-sale-------------
3.30--------------- |
|Conditional ------------ 8,
6
Cars
to
and
trucks
bus
|
t
2
SeS
4.o
Philippines -
95---------------
t
2
-
3 o
------------------
Inortgage--------
Chattel
New
to
20
cars
used
33%, 18.
to
12 ------------
-------
cars
new
20,
used
and
i
trucks
busses
and
| 20
25.
to
-
Siam... -N New
50
used
--75,
--
Hire-purchase---
5----------------
used
33%,ew
50----!
to
33% 12. ------------
to
10
l
AFRICA
(Angola
3 including
Bel to-----------
resorted
Rarely
do--------------- ------------
75----------------------
------
Congo).
gian
Algeria.----------
. . New
new
85,
.cars
trucks,
1-----------------
L
than
ess
Conditional
hire-pur
or
sale -
busses
taxis
and
99,
used
chase.”
vehicles,
types,
all
40.
Africa.--
East
British
Cars
90, 12.
Egypt.-------
---- to
12
New
15,
8,
used
taxis
100, conditional
sale.
-
-
5.
Hire-purchase
sold
sometimes
are
cars
passenger
used;
often
is
3824.
to
25
--o%-c-a-si-o-na-l- y
12,
18. Cars
12
busses,
trucks,
25,
to
20
Cars
----| 18. 12
12
busses,
trucks,
25,
to
20 upward- - - - - - -
and
25
8 %- - - - - - - - -12
-
18.
to 24.
to
50- - -o- - - - 12.
to
33%
t---'
3
4. 50- - - -o- - - -
to
15
t---'
3
33%. and
taxis
and 33%.
taxis
Nm ediaotely.
i*
passing
title
contract,
by
covered
not
are
time
on
sold
cars
of
part
greater
the
form;
standard
NnPCars
Ag5lofirg-tibeolc-asm.-.--is- - o--ry-
1eFrench
trucks
10,
West
Cdo-on- d-i-t-io- n-a-l
7--------
sale
Sr aome
a*
subsequent
and
defaults
in
result
sales
of
cent
per
60
state
dealers
payment.
forngements
Answers
*
Congo.
Belgian
the
cases
most
in
also
may
but
Angola,
to
strictly
apply
Cgalled
S|
aa
mortgage.
chattel
of
effect
legal
having
but
rales
e ment,
| zone.- - - - -
Spanish
cars
80,
busses
and
Trucks
- busses
30,
trucks
50,
Cars Both
*
validity.
legal
doubtful
are
contract
of
forms pxeargcenrataegde.
e*..This
highly
be
to
believed
is
few.4.
taxis
and
sogndriort
a
cunder
aof etiomnael-nstal.e
100.
taxis
75,
:9 hire-purchase.
uses
dealer
French
71
2
donths.
1
m*
6
allows
ealer
zInotnern.a-tio-na-l
zone.- - - - - -
French
9M5a-d -gas-ca-r - - - |- - -
Morocco:
:
of
SUMMARY
INSURANCE
AND
FINANCING
TERMS
INSTALLMENT
FOR
OCEANIA,
IN
SALES
ASIA,
AFRICA
Full
premium Premium
paid
and
period
over places
Party Party
re
who Insurance
agains
Country Average
1
charge
finance Required
and
insurance
kind at
buyer
by
paid who
fl
in
included insurance ceives
commis and
default
con
sale
of
time sion version
charges
nance
OCEANIA
Australia---------
-------- 6%
Flat,
8per
to
cent-----|
liability
collision,
theſt,
Fire, ----------
*-
Yes
Yes”------------ Finance
corn Finance
com-
I
Zealand---------------
New Fire,
collision---------
theft, Yes-------------
--
----------------
|
!----------------
------------------
Fire, […
liability
collision,
theft, Yes-------------
interest
per
6
only
cent dealers.
of
majority
by
car
(if
insured).
is
Fº
Interest,
liabil
collision,
theft,
per
20
to
10
cent. Yes-------------
l y.
F
Interest,
cent-------
per
10
Interest,
to
8
cent--.
per
9%
F
it
cent----------
Flat,
per
10
3.
-----
pany. pany.
Interest,
N
cent-------
per
12
Interest,
per
9
cent--------
1ty.
cent-----------
9
Flat,
insure;
per
must
only
Dealer
whether
him
with
optional
purchaser
must.
Flat;
to
8
interest,
or
20 Occasionally,
cars
for
only,
per
cent. collision.
theft,
fire,
Interest,
cent
per
12 Dealer,
prob
ably.
cent-----------
7
Flat,
per Dealer----------
Angola--------------------- Interest,
cent
per
10 No.
Algeria--------------------- cent----------
Flat,
per
10 Finance
com Finance
com No.
pany. any.
East
British
Africa Finance
com Finance
com
dealer.
or
pany pany
dealer.
or
Dealer
usually; p1 lacing--------
No.
finance.com
or
pany.
Africa---------
West
French Interest.-------------------
N No.
Madagascar---------------- Interest,
"-----
cent
per
12 No.
|| Morocco:
cent-------|
None-----------------------------------------|------------------------------------|------------------
per
10
Interest,
zone.------------
French
1dealer
collision,
Yes-------------|------------------
liabil-
theſt,
Fire,
reported.--------------
Not
zone.------
International
-
dº…---------------|-º-º:-----------------
-----------
-----
liability------.
cent-------
collision,
Fire,
-IYes
per
10
T
interest,
collision,
liabil-
only--|
theft,
Fire,
interest
or
rate
Flat
Yos
Africa.------
South
of
Union
ity.
:
|
course
of
charge,
interest
monthly
the
payment;
down
after
outstanding
amount
total
the
on
based
from
and
rate)
distinguished
(as
af1Ilat
computed
usually
is
nterest
spread
and
payment
down
after
outstanding
amount
total
the
inercentage
apof
is
shown)
otherwise
(unless
usually
charge
flat
The
made.
are
payinents
monthly
as
decreases
installinents.
the
over
amounts
equal
involved.
practiced;
company
on
depends
it
are
premiums
*Both
collecting
of
methods
commission.
receives
and
insurance
the
places
he
finances,
dealer
where
sales
*In
in
cash
only.
*Flat
interest
charges
account.
own
their
for
insurance
collision
and
theft,
ſire,
out
take
*Purchasers
frequently
cent.
8p
low
as
fer
•A
charge
dealers
ew
S
IN
DUTIES
AND
RIGHTS
OF
SUMMARY AFRICA
AND
ASIA,
OCEANIA,
IN
SALES
INSTALLMENT
For
RESALE
REPossEssion
Registration
Repossession Repossession criminally
Buyer contracts
of
bears
who
Party liable
Purchaser cnti
Purchaser against
trus agai if
sells
he
liable necessary
to
innocent
nst
diſference
to
tled
doficit
ſor
deficit tee
in party country on
binding
be
third leaves
or
bankruptcy parties
third
| |
|
OCEANI.A.
sells,
he
if
Yes, On
i
1y n
| No--------------
Dealer----------.
No--------------
Dealer-------
com-
--------
Finance
-
-Australia-
heleaves
notif Western
| pany. | S: tate.1 Australia.
do-------
ealer----------------
D:Zealand.---------
New Yes-------------
Yes-------------|
do---------- No.
Probably-------
-----
-
ASIA
No.
No.
No.
,company. Not
binding.
--------do
Dealer
Chosen.----------------
do
do-------
China--------.
French-Indo report
Not
-...----- deCI. §
| No.
ſi-'.---.
or
Dealer"
India-----------
do------- -----. I)ealer
finance
or
.conn-
nance company.
binding.
Not
IDO.
Technically, yos
legally;
Not D0.
prac
in
yes; in
practice.
no.
tice,
Persia----------------------do So-------------- No.7
l report
Not
do
I’hilippines------ ------
.----- |0
No.
N| o--------------
do
Siam------------------ i
-----
:.*PRICA
t
9Dealer ------
No
reported.----.
Not
Angola----------
do--------------
Algeria-- -do---- e
-
-
One
repos
who
Either-----...--
finance
or
Dealer
Africa.-----
East
British
sesses.
COInpany.
Dealer----------
com-
Finance
Finance
-
| Pgypt.----------- ------
p -
any
! any.
Dealer
Africa----i
West
French
!-----
do
Madagascar------ -----
Morocco:
zone.-------
French
(13)
14
reported.III
Nót
zone.------
Spanish
Y
(*)--------------
zone-
International
(*)--------------|------------------|------------------
(*)------------
N
I)ealer--- Tunisia--
-D
Noealer---
Afr
South
of
Union
Iſ
it
departure
purchaser's
the
proved
defraud,
to1
intent
with
was
liable.
criminally
be
would
he
*See
paragraph
section
connection
this
in
Malaya.
British
covering
*Iſ
repossession
court
by
ordered
are
sale
and
public
be
must
the
pay
Inust
purchaser
is
otherwise
deſicit;
private
liable.
so
not
*Where
finance
manufacturer,
by
controlled
company
repossesses,
dealer
where
deficit;
hears
and
sells,
recourse,
without
paper,
company,
finance
local
by
handled
is
latter
dealer
repossesses,
bears
company
finance
and
sells,
deficit.
*When
repossession
seller,
in
retained
actually
transactions,
most
possible;
is
title
pass
however,
sale.
on
immediately
*Repossession
purchaser,
third
innocent
fronn
possible
payment,
without
negligent
was
he
where
only
seller
that
himself
satisfying
in
owner.
actual
the
was
7Conditional
sales
with
registered
be
should
police.
the
*The
agreement
purchaser
that
stipulates
usually
any
for
liable
le
should
hire-purchase
the
lowever,
deſicit;
such
no
makes
itself
law
difficult
is
it
hence
provision;
enforce
of
usually
dealer
ment;
repossession.
mere
with
satisfied
is
9Repossession
not
compromises
to;
resorted
usually
default
where
effected
are
occurs.
payinent
in
contract
Or
10
previous
all
that
provide
may
damages,
liquidated
are
payments
being
not
purchaser
the
but
excess
any
to
entitled
adeficit.
for
liable
Individuals
11
legally
not
can
citizens
private
or
bankrupt.
hecome
section
see
But
12
Madagascar.
covering
repossession
Legally
13
but
sustainable,
not
nevertheless
courts
cases
some
in
repossession.
delayed
alluwed
have
repossession
If
14
purchaser
13)
note
(see
effected
is
deficit.
for
liable
§
Š
INSTAL MENT
FOR
FACILITIES
PRACTICES
CREDIT
GUARANTY,
DIscount,
OF
SUMMARY
AFRICA
AND
ASIA,
OcEANIA,
IN
SALES en-
other
Are
con-
Do itiy
guarantee
dealers
facilDo
Sales
better
Would
not own
carry improved
from
result
for
available
required
dorsers
repur,
to
tract
es paper
discount?aper?
banks
Do
Country
finance
to
dealers cheap
especially
Yes, deal
Small
for
Only
dealer?
by
resell?
and
chase
fcompany?
credit
American
acilities?
paper:
2
cent.
per
50 cent.
per
40 cent.
per
100
grades.
er
Yes
ZPossibly.
ONew
|
4
dfor
uYMany
NNot
eosc-a.ul-an-lsd-i-yo|-n-al--y- Probably.
----
Chosen
erS.
YNAeYeS.
as
paper
use
others
Some;
||
oc-
but
discount
Rarely
Yes uso-tr-ali-a - - - - - | -atnbe-ilays- -|- - - |
cYoNOemAsfRprNo.
finance
No N
- - Most osa-l-a-ya- -o
-YPritish
own
carry
dealers
MNeNo. --- - - China---
YeS.
Y Yes.
No.No.No.
O. No. No. No. No.
credit
any
Are
makes?
i
ASIA
paper.
-
col ateral
pa-
on
lend
casionally
loans.
for
Several
Seldom
strong
from
months oc asional y
No:
accept
cent----
per
5%
Readily,
col ateral.
as
per col ateral.
as
ed
companies.
est cent- - - - -
per
10
Yes,
No- - - - - - - -
Africa- -|
East
British
N
OCEANLA
AFRIC.
Angola- - - - - Algeria- - - - -
s
manufacturer
a
of
subsidiary
is
company
finance
When
Wepocal
l1
a
is
company
finance
rthe
to
contract
or
paper
guarantee
not
does
dealer
one,
resell.
and
hen
urchase
Required
m*
a
is
purchaser
the
case
in
only
woman.
married
orinor
resell.
repurchase
to
contract
and
paper
guarantee
does
dealer
the
Aropolso
p2
increase
would
loss
of
riskrtionately.
pTcent--
8
Yes,
unis a- er
----
Oc asional y- - - -
||
Africa
South
of
Union
Yes-French International- - - YSpanish

zo-n-e.- - - - - Yes--- zone.-----
es- - - - -
Citroen
*
does.
agent
Morroco:
VARIATIONS IN OCEANIA
AUSTRALIA
By H. R. Buckley, American Trade Commissioner, Sydney
It is difficult to arrive at the percentage of various types of motor

vehicles sold on the installment plan in Australia. In the case of
expensive cars (ranging from £400 or £500 upward) a fair average
would be about 60 or 65 per cent; in the field of smaller cars it
would undoubtedly be nearer 80 per cent. It is believed, however,
that a figure of 75 per cent would be an average which would apply
to all classes of vehicles of whatever price. Approximately 1 per
cent of time sales result in repossession. The hire-purchase agree
ment is used exclusively.
The average down payment for all types of new vehicles is usually
33% per cent, the balance payable within 18 months. In the case
of used cars 33% per cent down is usually required, the balance to
be paid in 12 months. These terms are customary with the largest
and most reputable finance houses. However, in the case of trucks,
busses, and taxis terms longer than 18 months are often extended in
individual cases, and dealers who finance all or some of their own
passenger-car sales, of course, vary the terms and extend longer
credit in some instances. Several years ago a few large, expensive
cars were sold on extremely long terms, even as long as 30 months,
being financed almost entirely outside of the regular finance com
panies. To-day such long terms are not extended.
The finance charge in practically all cases consists of a flat rate,
varying from 6% to 8 per cent (larger companies, as a rule, adhere
to 6% per cent), and, of course, applying to the whole amount of
the unpaid balance for the entire term of the paper; however, if
complete payment should be made before the original contract has
been completed, a pro rata rebate is customarily made.
Fire, theft, and collision insurance is required to be placed on a
car under the hire-purchase agreement. In addition, what is called
locally third-party insurance, which corresponds to public-liability
insurance in the United States, up to £1,000 is also required. There
is also a clause to take care of injury to a fourth party if such
should occur.
The premiums for the various types of insurance mentioned are
in some cases included in the finance charge and spread over the
term of the sale, and in other cases must be paid in cash at the time
of the sale. The different practices are at the choice of the com
pany involved.
The finance company in practically all cases acts as the insurance
agent or broker in placing the various kinds of insurance. In
fact, the profit made from the placing of insurance is such that
(22)
23
comparatively low finance charges are customary. In case of cash

sales, dealers act as insurance brokers and collect commissions, and,
of course, where dealers finance their own time sales they likewise
collect the insurance commission. Finance companies do not in
2sure against risk of default or conversion, for the reason that pas
sage of a vehicle from one State to another requires a permit from
the authorities in the State being entered, and because there are
few large cities where a car can be easily swallowed up and lost
in a maze of traffic. It is the opinion of most finance companies,
therefore, that conversion insurance is unnecessary.
In case of default the finance company, the party appearing in the
contract (not the dealer), makes the repossession, although, inas
much as the dealer is guaranteeing the payment, it is customary
for him to assist the finance company. The insurance company takes
no heed of the matter whatever. After repossession the car is re
turned to the dealer, who makes either the necessary sale or the
payment.
The original purchaser, where a car has been repossessed from
him, can be required to pay only the past-due installments; that is,
those due prior to the time of repossession. On the other hand, he
loses his entire equity in the automobile and, of course, can not be
held for any deficit resulting from such sale, which may be either
private or public, there being no formalities to be complied with.
Where the buyer becomes bankrupt before completing his pay
ments, the car can be repossessed if evidence can be offered showing
that it is customary to sell the particular chattels in question under
a bona fide hire-purchase agreement. The custom, moreover, must
have been long enough established to have become generally known,
not only to the specific trade to which the goods belong, but to all
classes of persons who would, in the ordinary course of business,
be likely to become creditors of the insolvent purchaser. Automo
biles, along with bicycles, motor cycles, musical instruments, furni
ture, sewing machines, agricultural implements, and certain machin
ery, are usually sold under the hire-purchase agreement and fall
within this established custom. Otherwise, under the bankruptcy
laws of the Commonwealth, the property of the debtor reverts to the
assignee or trustee (this includes all goods in his possession at
the time of the proceedings), so that the vendor, where the purchaser
obtains false credit, must bear the loss. The importance of estab
lishing the custom of selling under the hire-purchase is, therefore,
apparent.
Where the purchaser, before completing payments, sells the vehicle
to an innocent third party, it may be repossessed if the contract is
so worded as to establish the customary hire-purchase transaction:
therefore, the agreement should show that the “hirer’ holds merely
an option to buy, which may be terminated by returning the property
to the vendor |...} in which case the rights of the vendor
are superior to those of an innocent third party, and the automobile
may be repossessed. Otherwise, where innocent third parties obtain
the chattel, the rights of the vendor or owner depend largely on
whether a sale has actually taken place. If the wording of the con
tract be such that the purchaser agrees in reality to buy, a legal
sale has occurred and the rights of the innocent third party would
102723–30—4
24
be superior to those of the owner. This doctrine is laid down in the

Commonwealth case of Lee v. Butler.
If the purchaser sells the car without the consent of the lien holder
he is criminally liable, but if he moves to another State without
permission he is not criminally liable unless it can be shown that he
acted with an intention to defraud—a fact very difficult of proof.
Hire-purchase contracts, to be binding on third parties, need now
be registered in but one State, Western Australia, where registry is
required in the office of the registrar. The National Roads and
Motorists Association has conducted a campaign to get legislation
requiring registration in all States.
Local banks do not readily discount automobile installment paper;
in fact, they hardly discount notes at all, but in the case of reputable
finance companies they will advance loans against the paper as col
lateral up to 50 or 60 per cent. The ordinary interest charge in such
cases is 61%, sometimes 7, per cent. Some dealers carry their own
paper; some are able to use it as collateral for loans. A few of the
big State distributors have subsidiary finance companies of their
own. In all cases where the paper is handled through a finance com
pany, the dealer is required to guarantee the payment and also to
purchase the car if it is repossessed and not sold soon enough by
the finance company.
No other indorsers or guarantors are required, inasmuch as it is
customary to investigate the financial standing of the dealer and to
grant him a definite time beyond which credit is not usually extended.
European automobile manufacturers and dealers in Australia have
no facilities which are not available to dealers of American cars. In
fact, their position is considerably weaker, as they have no finance
houses as do American manufacturers. If more adequate time-sales
financing facilities were available, especially a wholesale plan, it
undoubtedly would have an encouraging effect on the sale of
American cars.
NEW ZEALAND
By Julian B. Foster, Automotive Trade Commissioner, Wellington
In New Zealand approximately 70 per cent of new passenger cars,

75 per cent of the used passenger cars, 80 per cent of new and used
trucks, and 85 per cent of new and used busses and taxis are sold
on the installment plan.
Defaults justifying repossession occur most frequently in the low
price field: no accurate figures can be obtained, but it is estimated
that only a little over 1 per cent of the new cars are repossessed.
There is a greater margin in the used-car field, where the proportion
is approximately 5 per cent.
The contract most generally used in New Zealand is the hire
purchase, secured by an assignment of the agreement and the chattel.
The finance company takes the purchaser's promissory notes indorsed
by the dealer; it also takes out all-risk insurance. The conditional
sale document is little known and seldom used in New Zealand.
Most finance companies require one-third of the cost price at the
time of sale; occasionally, however, trucks are sold at 25 per cent
25
of the purchase price. Usually 18 months are allowed on passenger

cars and taxis and two years on busses and trucks.
The finance charge usually takes the form of a flat charge, figured
on the balance after the initial payment.
Fire, theft, and collision insurance must be procured: the cost is
usually included in the finance charge, the finance company acting
as agent or broker and presumably collecting a commission therefor;
the dealer never so acts. The finance company does not insure
against risk of default or conversion, this type of insurance not
being available in New Zealand.
Banks do not readily discount automobile installment paper. In
some instances they discount paper of the strongest companies for
a period not exceeding four months. A number of dealers carry
their own paper.
The dealer indorses the notes and guarantees them. In case the
car is repossessed he is liable. No other indorsers or guarantors
are usually required. Occasionally, if a dealer is not financially
strong, companies require him to be backed by a suitable indorser.
When a new dealer desires financing before the investigation on the
part of the finance company has been concluded, the transaction may
be financed if the dealer procures the extra indorsers.
The dealer makes repossession and sells. The original purchaser
is liable to him for any deficit. Repossession is good against an
innocent purchaser and against the buyer's trustee in bankruptcy.
Cars can not be removed from New Zealand without the consent of
the owner, who is the dealer, of course, if payments are still due.
Private sales are the general rule, but there are no legal requirements
that the car be sold; it usually is, however, and the balance over and
above the installments not made should go to the original purchaser.
Hire-purchase contracts do not have to be registered to be binding
on third parties.
There are no finance facilities in New Zealand which are not avail
able to American manufacturers or their dealers. The finance cor
porations operating there at present are doing everything within
their power to assist dealers and importers.
VARIATIONS IN ASIA
ARABIA
By Cloyce K. Huston, American Vice Consul, Aden
It is estimated that the total number of automobiles sold in the

Aden district by local dealers is in the neighborhood of 60 a year,
although a considerable number of other cars are brought into the
country by owners or ordered through manufacturers and dealers
in other countries. Of those 60, which are all passenger cars, mostly
touring models, roughly 80 per cent are paid for in installments.
Some are destined for private use, but most of them are used as
taxis. It is believed that practically all passenger cars for taxi
service are purchased through the installment system. Trucks and
busses need not be considered, since in practically every case they
are imported direct from European or other distributors by the
owner and user. Used cars may likewise be disregarded; they are
not handled regularly by local dealers. Repossessions are estimated
at 1 per cent. The conditional-sale agreement is customarily used.
Local needs and purchasing power have caused the price range
for motor vehicles in the area to be the lowest, practically all the
cars sold there being quoted at or near 1,850 rupees ($675.25 at par).
With this price as a basis the down payment is almost invariabl
fixed at 200 rupees ($73), and the subsequent installments, whic
continue at a uniform rate until the car is entirely paid for, are nor
mally 100 rupees a month, regardless of the time required to com
plete the payment. The charge for financing commonly takes the
form of a lump sum by which the original price is augmented, the
amount in most cases being 200 rupees. In other words, a motor
car selling for 1,850 rupees in the case of outright purchase costs
2,050 rupees if paid for by installments. This augmentation is arbi
trary, not being reckoned on a percentage basis, and its use obviates
the necessity of calculating interest on unpaid balances. No form
of insurance is required to be placed on the car.
Should the purchaser sell the car before completing payments it
can be repossessed by the dealer from the second purchaser; repos
session may also occur in cases where the buyer becomes bankrupt
prior to the completion of the payments. According to local law, the
purchaser becomes criminally liable in case he sells the car or moves
to another country or State without the consent of the seller or holder
of the lien. When repossession is resorted to the terms and methods
of adjustment are normally agreed upon mutually, although either
arty has the right, if necessary, to take refuge in the local courts.
n case the dealer has not recovered the full price after repossession
and sale, the original purchaser can be required to make up the
deficit. Naturally, since total sales are very small and the number
(26)
27
of repossessions is estimated to be no more than 1 per cent of the

number of sales, means and methods of repossession have not become
fixed or standardized.
Conditional-sale contracts should be registered with the registrar
of the local court, but they are considered to be binding on all parties,
including third parties, whether registered or not.
The local bank rarely is willing to discount installment automobile
paper, the local dealers having usually to carry their own.
The agreement between the seller and the purchaser is drafted by
the seller and signed in his office, usually in the presence of two dis
interested parties as witnesses. Witnesses to the signature of the
document in no way make themselves liable thereon in case of de
fault, their signatures being of value only in case the legality or au
thenticity of the document is questioned. The seller, however, fre
quently demands guaranties by responsible merchants or other in
dividuals, especially when the integrity or financial position of the
purchaser is open to doubt or suspicion, in which case they bind them
selves to make good.all payments due if the purchaser fails to do so.
It is not believed that the interests of American automobile manu
facturers could be advanced in any way if an attempt were made to
make available more adequate automobile installment-sales financing
facilities. Over 80 per cent of the cars now in use in the Aden dis
trict are of American origin, and local dealers seem to have at their
disposal every facility required by local conditions for financing
sales. -
BRITISH MALAYA
By Donald Renshaw, American Trade Commissioner, Singapore
Approximately 90 per cent of passenger cars, 95 per cent of trucks

and busses, and 98 per cent of taxicabs in British Malaya are sold
on the installment plan. The percentage of repossessions is not
known but is believed to be extremely low.
The hire-purchase agreement is employed in installment sales.
The average down payment is 33% per cent on new vehicles and 40
to 50 per cent on used vehicles. The average credit period for new and
iised cars is 12 months. Some firms limit the period on trucks to
nine months, owing to the high rate of depreciation.
The usual finance charge, where the vehicle is not insured, is a
flat rate, the amount depending on the individual dealer involved;
where the dealer requires the purchaser to insure the vehicle, how.
ever, the charge is interest only, generally at 6 per cent. -
A majority of automobile dealers require insurance, but some do

not insist on it. Where, the car is insured, however, the finance
charge is much lower. The finance company does not insure against
‘default or conversion; the dealer, of course, is liable.
The dealer repossesses and resells the vehicle where the purchaser
is in default; the dealer bears any deficit as between himself and the
finance company, but he may require the purchaser to meet it. The
latter, moreover, is not entitled to any excess over the debt result
ing from the resale. No formalities are required in connection with
a resale, but dealers generally advise the hirer in writing that the
vehicle is repossessed and that unless payment is made within three
28
or four days the vehicle will be sold. Where the purchaser becomes.
bankrupt before completing his payments, the car, it is reported,
may be repossessed from the trustee in bankruptcy. This is evi
dently the practice; however, attention is directed to a decision of the
bankruptcy court of Singapore, wherein Mr. Justice Dean ruled
that a typewriter held by a bankrupt under a hire-purchase agree
ment constituted a part of the bankrupt’s assets and could not be
repossessed by the dealer. This case may indicate the position which
might possibly be taken by the courts in the case of an automobile.
Repossession is possible against an innocent purchaser. The pur
chaser is not criminally liable where he sells the car or moves it out
of the country before completing his payments. Registration of
hire-purchase agreements is not required in order to be binding on
third parties.
Local banks do not discount automobile paper; dealers usually
'arry their own. Usually no indorsers or guarantors are required.
There are no financing facilities not available to American manu
facturers or dealers, and it is believed that present facilities are
entirely adequate. V.
CHINA
By Jerome Marcs, Office of Trade Commissioner, Shanghai
The following information applies principally to conditions ob

taining in Shanghai, the largest treaty port in China. Similar con
ditions exist in other treaty ports and various points in the interior.
However, in view of the unsettled political state of the country and
the continued possibility of internal disorders, automobile dealers
exercise extreme care in extending credits, with the result that busi
ness outside of treaty-port areas is confined largely to a cash basis.
A certain amount of flexibility must also be allowed in view of the
peculiar court system existing in China, where nationals of America,
Great Britain, France, and other powers possessing extraterritorial
ity come under the jurisdiction of their respective countries and not
under Chinese law. Due consideration, therefore, is made by the
automobile dealer of the nationality of his client in making a time
payment sale, and the character of the documents drawn up is such
that it will hold in the local court of the national concerned in case
legal procedure is necessary.
About 75 per cent of all motor vehicles, both new and used, are
sold on the installment plan. About 5 per cent result in defaults
justifying repossession.
The conditional-sale contract is used in installment sales of auto
mobiles. The down payment for both new and used cars varies
from 25 to 50 per cent, the amount depending on the credit stand
ing of the purchaser. The credit period may be, again according
to the standing of the purchaser, 6, 12, or 18 months.
The finance charge is usually interest only, at 10 to 20 per cent.
Full insurance—fire, theft, collision, and liability—is required to be
placed on the car. The premium may be paid by purchaser at the
time of the sale or it may be included in the finance charges and
spread over the installment period. The dealer usually places the
insurance and receives a commission. Finance companies insure
themselves against default or conversion,
29
In case of default either the dealer or the finance company makes

repossession. Occasionally, the latter sells, but the dealer usually
does so. The dealer is liable for any deficit if the phrase “with
recourse” is used. The purchaser, in turn, is liable to the dealer for
such shortage. Moreover, the purchaser is not entitled to any excess
after a resale.
If the purchaser becomes bankrupt the seller may repossess, the
car from a trustee in bankruptcy. Repossession is also provided
against an innocent purchaser. The purchaser is criminally liable
if he sells or moves the car into another country or State without the
consent of the holder of the lien. Registration of conditional-sale
contracts is not required.
Local banks do not readily discount installment paper; in a few
cases where they accept such paper their charges run from 9 to 14
per cent. Most dealers, therefore, carry their own paper.
Dealers indorse and guarantee their paper and also agree to re
purchase the car in case of repossession. Indorsers or guarantors
are sometimes required, according to the standing of the dealer.
European manufacturers or dealers have no time-selling facilities
not available to American manufacturers or dealers. Petter facili
ties resulting in lower interest rates would doubtless increase sales
of American automobiles.
CHOSEN
By Ransford S. Miller, American Consul General, Seoul
Very few motor vehicles, new or used, are sold on the installment
plan. The percentage is unknown. The percentage of repossessions
is also unobtainable, but it is very small.
The conditional-sale contract is used in the few cases of installment
sales. The usual down payment varies from 30 to 50 per cent for
all types of vehicles; the usual credit period runs from three to six
months.
The finance charge is interest only, 10 per cent, the same as the
rate charged by banks. Only fire insurance is now required to be
taken out at the time of the sale by the purchaser; the dealer, ap
parently, does not place the insurance or receive any commission.
There are no finance companies operating in Chosen.
The dealer makes repossession and resells, if the necessary provi
sion (as it evidently is) is inserted in the contract. There being no
finance company and no insurance companies handling this phase
of the business, the dealer, of course, bears the deficit. The pur
chaser, in turn, can be required to make up the deficit if the car is
sold at a public sale on order by the court: if the sale is private
the purchaser is not so liable. If there remains any excess over the
debt, after the sale, the purchaser is entitled thereto, unless a special
agreement has been made otherwise.
If the purchaser becomes bankrupt before completing payments,
the car may be repossessed if such right has been retained by the
dealer. On the other hand, repossession is not possible against an
innocent purchaser. The purchaser is criminally liable if he sells the
car or moves it from the country before payment of the final install
ment. Registration of conditional-sale contracts is not necessary or
possible.
-
30
Banks do not discount automobile paper; dealers carry it them

selves. They require two guarantors on the contract and the indorse
ment of a notary. European manufacturers or dealers have no
financing facilities not enjoyed by American producers or dealers.
Improved facilities might result in increased sales, but to date it has
been impossible to put any such plan into successful operation.
FRENCH INDO-CHINA
By 1Henry S. Waterman, American Consul, Saigon
On account of the lack of facilities for effecting sales on the

installment plan the proportion of cars so sold is rather small,
although the realization that better facilities would increase sales
is rapidly causing dealers to seek to improve the conditions. An
estimate of the proportion of cars so sold, made by a local dealer,
follows: Passenger cars, 30 to 40 per cent; trucks, 5 to 10 per cent;
busses, unestimated; taxis, none.
The document most in use is the hire-purchase contract. A
straight sale contract is also used, but title thereunder passes im
mediately to the purchaser. The terms are usually one-fourth to
one-third down, the balance in six monthly payments, although in
special cases these conditions are made more liberal and up to one
year is allowed. Trucks are nearly always bought for cash, as they
are purchased only by larger companies and corporations; with
few exceptions busses are used chassis with locally made bodies.
There are no taxis in French Indo-China. Used cars are always
sold under individual contracts and at varying terms, there being
no general usage.
In theory the seller finances the operation; in practice a bank
usually does so. There are no automobile financing companies, their
places being taken by the banks, which receive from 8 to 91% per
cent interest on deferred payments, the seller indorsing the paper
and guaranteeing the bank against loss, and the seller being, in
turn, protected through compulsory insurance against all risks up to
75 per cent of the value of the contract (which, of course, is full
protection, as the first payment has already been received). Most
of the garages have no regular financing arrangements and must
make arrangements with the banks to suit each individual case or
else carry the paper themselves. The selling of cars on the partial
payment plan is a comparatively new development in French Indo
China, and those garages in a position to carry, or which have
carried, the paper, use the fact as a selling point. The operation
usually consists in the buyer signing the contract for the cash pur
chase value of the car, protecting the seller through an insurance
policy against loss by fire, theft, and accident, his only other addi
tional expense being the payment of the interest charges to the bank
on the deferred payments. The policy may be taken out in any
recognized and approved company. -
French law does not permit the insurance company to take forceful
possession of the car in the event of default without a proper action
in court. In practice, however, the dealer is able to take the car
wherever, he can find it, and as yet not a single suit to contest this
practice has been instituted in the local courts. The necessity for
31
such action rarely arises, the percentage of cars repossessed or the

necessity for taking legal action being negligible, certainly not above
one-half of 1 per cent, according to experience of the local garages.
If the buyer sells the car before completing payments, he can be
held criminally liable through prosecution for fraud as he does not
obtain title to the car until all payments have been made. Reposses
sion can be made from an innocent third-party purchaser.
In case of bankruptcy all creditors against the estate have equal
claims against all assets.
In case of repossession and sale the defaulting buyer has an equity
in the proceeds according to his payments already made. Sales may
be either public or private.
There are no facilities enjoyed by French companies for time
selling which could not be enjoyed by American or other foreign
companies. There are no foreign automobile companies main
taining branches in Indo-China, all business being done through
French agents. Should better financing facilities be provided, there
would doubtless be greater sales of both French and American cars,
especially those of the cheaper grades.
INDIA
By E. G. Sabine, American Trade Commissioner, Calcutta
It is estimated that about 55 per cent of all passenger cars, 70 per

cent of all trucks and busses, and practically all independently oper
ated taxicabs in India are sold on hire-purchase agreements. Of
all sales only about 1 per cent result in repossession. The usual (lown
payment is one-third of the purchase price of new passenger cars
and 40 to 50 per cent of the purchase price of used passenger cars.
For trucks, busses, and taxicabs from 40 to 50 per cent is the usual
initial payment. The period of time allowed to complete the pur
chase of either new or used vehicles of all kinds is generally 12
months, although 8 months is required in exceptional cases.
The charge for financing is a flat rate of 10 per cent of the deferred
balance. For example, if the balance after initial payment is 3,000
rupees, the charge for the 12 months period is 300 rupees, which
the subsidiary companies require to be paid in cash at time of
purchase and which the local companies permit to be spread over
the period of the contract. Should the purchaser pay the entire
balance at any time prior to expiration of the contract, he is allowed
a rebate of one-half of 1 per cent for each month remaining.
Seldom, if ever, is the balance so paid, however.
In all cases of hire-purchase agreements, fire, theft, collision, and
liability insurance are required to be placed on the car. Companies
controlled by manufacturers usually accept one-third of the insurance
premium in cash and distribute the balance in accordance with the
purchase agreement over the period during, which payment must
be completed. Ilocal companies require full payment in cash of
the insurance premium at the time of executing the agreement. The
finance company may, and usually does, act as insurance agent or
broker for the placing of the insurance and collecting commissions
therefor. The dealer seldom acts in this capacity.
32
It is believed there is no insurance company or finance company

in India which insures against risk of default or conversion. In
case of default, where companies controlled by manufacturers are
concerned, the dealers must repossess and sell at their own responsi
bility. Where local finance companies are concerned (“without re
course’ paper), they must repossess, in which case the dealer resells
at the risk of the local finance company. When a car is repossessed
it can be either publicly or privately sold without formality, and
any excess sum over and above the debt is turned over to the original
purchaser. On the other hand, should there be a deficit, such deficit
may be recovered by civil suit.
Contracts are not registered in India, there being no facilities for
registration.
If a buyer should sell the car before completing the payments, it
could be repossessed from the purchaser, or should the buyer become
bankrupt before completing payments, upon proof of hire, the car
can be repossessed. If the buyer sold the car before completing pay
ments, he could be held criminally liable, but could not be so held for
removing to another Province or into a native State without consent
of the lien holder.
There are no local banks which discount motor-vehicle installment
paper. Several of the stronger dealer organizations carry their own
paper.
There are two classes of finance companies at present operating in
India, local companies and companies subsidiary to manufacturers.
When the transaction is handled by the former, the dealer is required
neither to indorse or guarantee the paper nor to execute an agree
ment to repurchase the car if repossessed. However, the second class
of finance companies do require their dealers to indorse the paper,
meaning, in fact, that they must repossess and resell the car. Addi
tional indorsers or guarantors are required when, in the judgment
of the finance company, the purchaser is a doubtful credit risk.
Roughly, 50 per cent of the contracts require more than one
guarantor.
Dealers in European motor vehicles have no facilities for financing
motor-car sales in India which are not available as well to those in
American cars. Present facilities seem to be adequate.
IRAQ
By John Randolph, American Consul, Baghdad
According to estimates, sales of automotive vehicles in Iraq are as

follows: 10 per cent of passenger cars to private individuals or
families or to Government officials for pleasure or for transportation
to and from offices: 5 per cent of all passenger cars and 25 per cent
of trucks to the Government for the use of the army, or Public Works,
Agricultural, Irrigation, or other departments: 10 per cent of pas
senger cars and 25 per cent of trucks to the petroleum and other
private companies for industrial and agricultural use; and 75 per cent
of passenger cars and 50 per cent of trucks to taxi drivers for use in
carrying passengers and freight about the different cities or between
the cities and outlying towns and villages, into Persia, or across the
desert to Syria.
33
The sales to the Government and to industrial companies and most

sales to Government officials and to private individuals and families
are for cash, whereas, according to estimates, 95 per cent of all sales
to taxi drivers are made on an installment plan.
The following are the percentages of motor vehicles sold on the
installment plan: Passenger cars, 70; trucks, 50; taxis (passenger
touring cars and light trucks with special bodies), 95. No busses are
sold in Iraq.
According to one estimate, 10 to 15 per cent of installment sales
result in defaults justifying repossessions; according to another,
the average may be as high as 18 per cent. The true proportion is
probably not more than 10 per cent, however. In case of difficulty the
dealer generally grants more time or makes some other arrangement
or compromise. The best estimates are, therefore, as follows:
Passenger cars, 10 per cent; trucks, 10 per cent; taxis, 15 per cent.
The documents used in connection with installment sales in Iraq
are a sales agreement, with the validity of a chattel mortgage, or
promissory notes only, without formal contract.
The usual down payments for the best known cars, trucks, and
taxis vary from 33% to 50 per cent: for some of the others they vary
from 25 to 33% per cent. Where the vehicles are not so well known
or established a down payment of about 20 per cent is usually
accepted.
There are no busses in the country. Several used by the Syrian
Desert transport service and coming into Baghdad weekly from
Syria are registered in Syria; in any case, they are owned by the
Nairn Eastern Transport Co., which probably paid cash for them.
Under the classification of taxis, however, come trucks with locally
made bodies, with seats lengthwise, permitting a 1-ton or 1%-ton
chassis to carry 10 to 12 passengers in addition to 1% to 1 ton of
freight. These are, of course, improvised busses rather than taxis,
but in this report they are listed as taxis and the term “bus
confined to vehicles originally built as such. The taxis consist of
passenger touring cars. w
Used vehicles are not imported into Iraq. Most vehicles are
operated until scrapped. There are no used-car dealers; used cars,
if sold, are disposed of by owners for cash or on terms privately
reached.
Credit periods also vary according to the popularity of the vehicle.
Local agents of the most popular cars, trucks, and taxis state they
allow the balance to be paid in installments running from 7 to 11
months. with the average probably at 9. Other dealers are reported
to grant different terms, some allowing a shorter period and others
granting up to 18 months.
The usual charge for financing is interest at 1 per cent a month
(12 per cent per annum; the legal rate is 9). It appears that an
agreement for or acceptance of a rate higher than the legal rate
does not jeopardize the capital or loan itself, but it is impossible
for a money lender to recover by court action more than the legal
rate. Sometimes the financing charge will be called a flat rate, but
it is, in reality, interest only, the different installments, including
a sum equal to the interest running until maturity. In other words,
the price of the car is quoted inclusive of the interest charges on the
34
total number of installments. Where the transaction is for cash the

purchaser can, of course, get a discount amounting to the interest
charge on the original price quotation.
No form of insurance is compulsory. In fact, the agent for the
most popular car and truck in Iraq states that 99 per cent of his
sales would be jeopardized if he insisted on insurance being paid for
by the purchaser. Therefore, where insurance is taken out it is
paid for by the owner for his own protection. The dealer does not
place the insurance. There is no insurance against default or con
version.
In case of default the dealer endeavors to make repossession. To
do this he must foreclose his mortgage or apply to the courts on
the basis of his mortgage. Having accomplished this, he must sell
the car at auction. If the proceeds of the sale are less than the
sum due the dealer, he can sue the owner for the balance still due
him; if the proceeds of the sale are greater than the sum due the
(lealer, the surplus goes to the owner. The dealer is likewise pro
tected by the promissory notes, provided the drawer or indorser has
any property. If the drawer of a promissory note fails to pay when
the note falls due, he can be forced into bankruptcy if he continues
to fail to pay. An application to repossess must be made to the
local courts. Later the car must be sold by public auction on the
authority of the court. The original purchaser can be required to
make up any deficit in the amount received from such a sale, pro
vided he has any property on which recovery can be made.
If the buyer becomes bankrupt, the dealer can recover on the
mortgage and the car can be repossessed for sale by auction. If a
buyer sells the car before completing the payments, the dealer can
recover on his mortgage only by starting a criminal action in the
courts. . His protection evidently lies only in the promissory notes,
on which he can recover by bringing a civil action in the courts, pro
vided the drawer or indorser has assets of value. If the buyer sells
the car or moves to another country without the consent of the
holder of the mortgage before completing the payments, he becomes
criminally liable.
Local banks discount promissory notes given in connection with
the purchase of motor vehicles, charging 9 per cent interest. From
one source it is learned that banks do not readily discount such notes
if for periods longer than 90 days. At least one of the leading
dealers claims to carry all his own promissory notes. Other dealers
'arry some of their own paper, especially the promissory notes which
can not be readily discounted. Indorsers or guarantors are some
times required.
American cars and trucks have about 90 per cent of the local
automotive market and apparently have better financing facilities
than any European car or truck.
The financing system now used seems to be adequate for the pres
ent needs of the market. Possibly more liberal credit facilities
would result in more sales, but also there would result a larger per
centage of defaults. Ilater, as the general economic situation of the
country improves, sales of automotive vehicles will probably in
crease, and with increased sales will doubtless come increased
financing facilities.
35
JAPAN
By Paul P. Steintorf, American Trade Commissioner, Tokio
Installment sales of motor vehicles in Japan are becoming an im

portant feature of the market, but there are yet no definitely estab
lished methods of sale, terms of payment, etc. The information
which follows should, therefore, be interpreted in light of those
conditions.
It is impossible to make any definite statement in regard to the
percentage of motor vehicles sold on an installment basis. In fact,
the great majority of the local dealers insist that they sell only for
cash, although it is generally known that a great part of their busi
ness is done on some form of deferred payment. At least half, and
probably much more, of the passenger-car sales in Japan are made
under some form of deferred payment. The percentage of defaults
resulting in repossession is not known.
There is no standardized form of contract: in many cases it is a
hire-purchase agreement, with no provision that title is to pass after
the last payment. However, a large proportion of motor vehicles
are sold without any sales contract whatever, title passing to pur
chaser on delivery and the seller taking his note or notes for the
unpaid balance. Passenger cars, in general, are the only types sold
under any form of installment-sales contract.
There is no uniformity in the amount of the down payment.
Generally it ranges from 25 to 50 per cent of the purchase price; the
average would be approximately 40 per cent. There is also no uni
formity in the credit period. Terms range from 4 to 12, usually
6 to 8, months. The civil code of Japan, covering hire-purchase
contracts, limits such sales to six months for “movables,” but an
extension of the period is allowed upon application to the proper
authorities.
In practically every case the charge for financing is on the basis
of straight interest. The rate may be based either on the total pur
chase price or on the unpaid balance, the latter being more usual.
Interest rates range from 7 to 12 per cent, with the average at
about 9.
According to the usual practice, the purchaser must fully insure
the vehicle and pay the premium at the time of the sale.
The dealer repossesses and, of course, bears any loss; his recourse
would be against the purchaser, who would probably be liable there
for. This, however, is a question on which there is no accurate infor
mation available. On the other hand, the Japanese court would un
doubtedly require that any excess over the debt be returned to the
purchaser. If repossession is ordered by the court, a public sale
would be necessary, but in most cases, dealers are able, purely on
moral grounds, to effect repossession without legal measure and ac
tually in violation of Japanese law: in such cases private sale would
be permissible. Repossession is possible from a trustee in bank
ruptcy only where the seller has actually retained title: if title has
passed, the vehicle, of course, becomes a part of the bankrupt's assets.
Many vehicles are sold, however, without retention of title by the
seller. It is practically impossible to repossess a car sold before
payments were completed. The second purchaser is generally con
36
sidered entirely innocent, the only legal recourse being a suit against
the original purchaser for fraud. Usually the purchaser is criminally
liable for fraud where he sells the car or moves it from the coun
try before the final payment is made. There is no way in which hire
purchase or conditional-sale contracts can be registered and there is
no provision for a chattel mortgage, hence contracts are not binding
on third parties.
Automobile paper is not discounted by banks, owing to the fact
that Japanese law does not provide for a chattel mortgage and re
possessions are difficult. All dealers, therefore, must carry their own
paper. In practically every case the purchaser is required to secure
the indorsement of at least two individuals.
European manufacturers or their dealers have no special facilities
for financing motor-vehicle sales not available to American dealers;
on the contrary, the advantage is enjoyed in this respect by American
dealers. -
Unquestionably, more adequate financing facilities for sales of

automotive vehicles on installments would greatly stimulate sales in
Japan. The principal advantage would be in the elimination of the
risk the dealer is now compelled to assume, and a change would
enable him to utilize his capital more effectively.
NETHERLAND EAST INDIES
By Don C. Bliss, American Trade Commissioner, Batavia
It is estimated that 60 per cent of motor vehicles in the Netherland

East Indies are sold on the installment plan. The percentage of
repossessions is unknown; it is probably small, much less than 5 per
cent (not including temporary repossessions made in order to force
a purchaser to meet his payments—a very common practice). The
hire-purchase agreement is used exclusively.
The customary down payment for new passenger cars is 30 per cent
and for used cars 40 per cent. These figures also apply to taxicabs.
For trucks and busses the terms are more liberal, a down payment of
only 25 per cent frequently being accepted. The average credit
period covering new and used cars is 12 months; for trucks and
busses, 18 months.
A flat rate is customarily the finance charge, 9 per cent (or three
fourths of 1 per cent monthly) on the unpaid balance, plus a bank
collection charge of about 60 cents levied for each draft collected
through a bank. These charges are added to the unpaid balance and
the total divided into monthly payments, for each of which the
purchaser accepts a draft.
The dealer is required to insure the car against all risks, but the
responsibility is his only; sometimes when selling a used car he will
not insist on insurance, since rates are very high and the requirement
might prevent a sale. Where the purchaser insures, he pays the
premium at the time of the sale. The dealer usually places the
insurance and receives a commission of about 10 per cent. The
finance company does not insure against default or conversion, but
keeps a reserve of 1% per cent of outstanding obligations to cover
possible losses.
37
In case of default the dealer repossesses and resells; he bears any

deficit. Technically, the purchaser can be required, under a civil
action, to make good any deficit, but his liability is difficult to
enforce, so that it is used more as a basis for moral suasion than for
a suit. Excess, if any, over the debt need not be, but customarily is,
returned to the purchaser. There are no formalities in connection
with the sale of the repossessed car.
If the buyer becomes bankrupt before completing payments, the
car can be repossessed. The law requires, in this connection, that the
property be positively identified. . The weakest point in the local
laws is the lack of any provision for repossession from an innocent
third party. In such cases the seller can not recover the goods or
equipment unless it can be proved that the innocent purchaser was
negligent in satisfying himself that the seller was the actual owner
of the vehicle. If the purchaser sells the car or moves to another
country without the consent of the lien holder, he is criminally liable
and may be prosecuted for fraud. Registration of hire-purchase
contracts is evidently not required.
Local banks discount quite a large volume of automobile paper
for important distributors, charging a rate of 6 per cent. Most
dealers carry a certain amount of their own paper; that is, as much
as their resources permit. The dealer is required to indorse the
paper and pay for the car if repossessed. If the risk is great, other
indorsers or guarantors may be required.
European manufacturers and dealers have no facilities such as
those available to American manufacturers and dealers. Most cars
are sold by general distributors of strong financial resources, and
banks will handle a fairly large proportion of their financing re
quirements. A new financing company would find its greatest use
fulness in serving small dealers; the presence of such a company
might result in additional sales of possibly 20 American cars a
month.
PERSIA
By Augustin W. Ferrin, American Consul, Tabriz
The number of repossessions in Persia, after default in installment

payment by the purchaser, does not exceed 6 per cent of passenger
car sales and 3 per cent of those of trucks and busses. These figures
apply to new vehicles; used vehicles are not handled by dealers in
Persia. The number of automobiles sold on the part-payment plan,
however, is not reported. The conditional-sale agreement is used in
practically every transaction.
The usual down payment is 50 per cent for all classes of cars.
The term of payment is usually six to eight months for passenger
cars and two or four for trucks and busses. No taxicabs, as distin
guished from passenger cars, are in use. Shorter terms of payment
are preferred, if possible, on account of the fluctuations of exchange,
which make deferred payments speculative.
Financing between manufacturer and dealer takes the form of
interest only. Persia has no legally defined interest rate, and the
interest charge on deferred dealer payments varies greatly with the
credit of the dealer. Commonly the Imperial Bank’s custom is fol
38
lowed; 8 per cent per annum and an additional 1 per cent a month
on all indebtedness outstanding after the first month.
Between the dealer and the public a flat charge is not uncommon—
that is, the balance due after the down payment is divided into equal
installments, in which the interest is included, sometimes at as high
a rate as 2 per cent a month; but also dealers will sell a car on so
many equal payments, with interest at 8 to 20 per cent per annum
extra, according to the credit of the buyer.
Fire, theft, and collision insurance are not customarily carried.
Some dealers, though, require it on passenger cars. It is understood
that no company will insure trucks in Persia. Insurance, if taken,
is arranged by the purchaser: neither manufacturer, importer, nor
dealer acts as insurance broker.
Repossession of a car from a second purchaser when sold by the
original buyer before completion of payments, or from a buyer who
has become bankrupt before making final payment, would seem to
be simple, since all cars are sold on terms which leave them the
property of the seller until the last payment is made.
The buyer is not criminally liable if he sells a car or moves to
another country before completing payments.
It is not required that any excess over the debt, in a sale after
repossession, be returned to the original purchaser, nor is the pur
chaser liable for any deficit. Some dealers, however, return an excess
as a matter of policy. No legal formalities are required for such
sale; it may be either public or private.
While registration of conditional-sale contracts seems not com
pulsory, such record with the police is, nevertheless, desirable. Local
banks do not discount automobile installment paper; dealers must
carry it themselves, since no finance companies operate in Persia.
Neither ICuropean manufacturers nor their dealers have time-selling
facilities not available to dealers in American cars. It is stated by
the general agent of an American automobile company that more
adequate installment-sales financing facilities would cause an im
mediate increase of 50 per cent in the sale of American cars, but
at the same time the risk of loss also would increase by 50 per cent,
Ol' In OI’(2.
PHILIPPINE ISLANDS
-
By George C. Howard, American Trade Commissioner
Approximately 95 per cent of all automobile sales in the Philip

pines are on the installment plan. The number of defaults resulting
in repossession is estimated at 2 to 3 per cent.
The chattel mortgage is used exclusively. (A copy of the chattel
mortgage law of the Philippines is available, on request at the divi
sion of commercial laws of the Bureau of Foreign and Domestic
Commerce.)
The average down payments are as follows: New passenger cars, 20
to 33% per cent; used cars, 20 per cent; new and used trucks and
busses, 20 to 25 per cent.
For all kinds of new and used automobiles the average installment
period is 12 to 18 months, occasionally longer. The usual finance
charge is interest at 12 per cent.
39
Purchasers are not compelled to insure; where insurance is taken,

the customer pays the premium at the time of the sale. The dealer
frequently acts as broker in placing any insurance and probably
receives a commission therefor. There is no insurance against default
or conversion.
In case of default the dealer repossesses and resells the vehicles.
The purchaser is liable for a deficit, but is entitled to any excess
realized from the resale. If the purchaser sells the car before com
pleting his payments, it may be repossessed from an innocent third
party; repossession can likewise be made against a trustee in bank
ruptcy. If the purchaser should sell the car or move it out of the
i.
iable.
without the consent of the lien holder, he is criminally
Banks do not discount installment paper; they take it some times,
as collateral to secure overdrafts or loans at a monthly interest charge
of 9 per cent, but they do not welcome this kind of paper. Most
dealers carry their own. They indorse and guarantee their paper to
banks when the latter handle it. Neither indorsers nor guarantors
are required. They are no installment-selling facilities not avail
able to American manufacturers. The present facilities are adequate.
SIAM
By Don C. Bliss, American Trade Commissioner, Singapore
It is estimated that 75 per cent of new cars and 50 per cent of

used cars sold in Siam are bought on the installment plan. The per
centage varies among different dealers, of course, from less than
50 to as high as 95 per cent, the latter figure applying to the smaller
and more popular cars. About 5 per cent of cars sold on time are
repossessed. -
The hire-purchase agreement is used in all cases. According to

the civil code, the contract is void unless made in writing. The
hirer may at any time terminate the contract by redelivering the
property at his own expense to the owner. Upon such redelivery
the owner shall return one-third of the sum paid by the hirer, or
any other sum as agreed by the parties, but not less than one-third.
The owner may also terminate the contract in case of default of two
successive payments or breach of any material part of the contract,
in which case the previous payments are forfeited to the owner, who
is entitled to resume possession of the property. In case of default
of the last payment such right to forfeit and resume possession of
the property can be exercised only after one month from the default.
The usual down payment for all classes is one-third for new and
one-third to ...}.} for used vehicles. The period allowed for
completion of payments is usually 10 to 12 months.
The usual finance charge is a flat rate, amounting to 7 per cent.
A full comprehensive insurance policy is required against all risks.
the premium being paid by the purchaser at the time of the sale.
There are no finance companies in Siam : the dealer acts as insurance
broker and receives a commission of 10 per cent or more. There is
no insurance against default or conversion.
The dealer, of course, makes repossession and resells the vehicle:
he naturally bears any deficit. The purchaser can be required by
40
the agreement to make up any deficit, but there is no such provi

sion in the hire-purchase law, and the agreement is difficult to en
force in that respect. The dealer, however, is usually satisfied by re
possession. It is not required that the car be sold, and there are
no formalities involved in the resale; hence the purchaser would
not be entitled to an excess over the debt if any resulted.
The owner may repossess from an innocent third party. Cars
sold on installments are registered in the dealer's name (ownership
goes with registration in Siam), and registration may not be changed
without the dealer's consent. The dealer, or owner, also prevails
over a trustee in bankruptcy. There is no criminal liability where
the purchaser sells to an innocent third party or takes the car out of
the country without the consent of the owner.
Banks do not discount automobile paper; dealers have to carry
it themselves. Guarantors are often required by dealers.
European manufacturers do not have facilities not available to
American manufacturers, but they and their dealers are inclined to
be more lenient in regard to down payment and the installment
period. More adequate facilities are not required, as dealers are in
a position to handle all the business they can obtain.
VARIATIONS IN AFRICA
ALGERIA
By Robert English, American Vice Consul, Algiers
Algeria, a French possession, is subject to the provisions of the

French commercial and penal code. Installment contracts are not pro
vided for by the French law obtaining in Algeria; nevertheless, there
is an article of the civil code which sets out that a sale can be made
simply, without conditions, or made with conditions (conditional
sale). Hire-purchase contracts are not recognized by French law,
but they are used in effect by certain houses which employ specially
drawn contracts, varying according to the kind of goods covered by
the agreement.
Sales on the installment plan at the present time are a matter of
individual bargaining, based on the financial standing of the buyer
and the terms which he is endeavoring to obtain. Contracts may bear
the stipulation that any alteration in the existing form will avoid it,
yet alterations usually will be made if the financial standing of the
purchaser warrants.
It follows that with contracts of doubtful validity, which sellers
are hesitant to test in the courts of law and with elastic conditions
adapted to suit the personal needs of each buyer, the information
supplied in this report is to be regarded rather as a basis for negotia
tions than as a set of hard-and-fast rules of the trade.
Approximately 85 per cent of new passenger cars are sold on the
installment plan; the percentage covering new trucks, busses, and
taxis is 99. For used cars of all types the figure is 40 per cent.
Repossessions are estimated at less than 1 per cent.
The document used for installment sales generally is a conditional
sale or hire-purchase contract. The validity of either, as aforemen
tioned, however, is contestable, the seller relying, in fact, on the
moral effect. -
At the time of purchase the buyer is asked to pay 20 or 25 per

cent of the total, but he might be allowed to pay what he can or
is disposed to offer. Neither the arrangement nor the practice
varies in the case of private cars, trucks, busses, and taxis, whether
new or used.
The usual time allowed for payment for all classes is 12 months.
The time may be less and it may be more, even up to two years,
but sellers prefer a 12-month period, which permits of the paper
being discounted by a bank.
The charge for financing is usually a flat charge, but in the case
of Citroën, interest is charged on the outstanding amount. The
flat charge is included in the total amount outstanding after the
preliminary payment, which is divided into a number of equal pay
ments. At present it is not more than 10 per cent of the total sum
to be paid for the vehicle.
(41)
42 º
Insurance against all risks is usually obligatory. Its inclusion in

the contract, however, would seem to weaken the already doubtful
force of that document. Some firms do not ask for it; Peugeot
gives it with the vehicle in many cases. In principle, the insurance
is always paid for by the buyer at the time of sale and must extend
over the time for which the credit runs. The finance company in
Variably specifies the insurance company and acts as its agent. The
dealer occasionally acts in the same manner when he is doing the
financing himself. There is no insurance against default or con
Wel'Slon.
The dealer repossesses and sells the automobile, when payments

are in default, he bears any deficit, but he can not, in turn, collect
it from the purchaser. It would seem, on the other hand, where
an excess over the debt results, that he would not have to refund
it to the purchaser. In all cases the sale is public.
Where the purchaser sells the car before completion of payments,
it can not be repossessed from the second purchaser, since according
to French law the possession is vested in the first purchaser. Again.
if the purchaser becomes bankrupt, the vehicle must become legally
a part of his assets. In the event the buyer moves outside the
reach of French law, he is criminally liable.
Automobile paper is readily discounted by local banks. The
present rate charged for the finest paper is 51% per cent. There
are several automobile and truck dealers who carry their own paper.
The dealer indorses and guarantees the paper. He requires an
indorser only in case the purchaser is a minor or a married woman.
Facilities are usually accorded any firm which can give satis
factory guarantees, irrespective of nationality. On the other hand.
a small banking concern has been founded by the local representa
tive of Peugeot under the title of “Union Nord Africaine pour la
Finance, l’Agriculture & l’Industrie,” which naturally gives facili
ties to buyers of Peugeot machines, in addition to the dealer himself.
If a satisfactory formula could be discovered to protect the in
terest of the vendor, sales of automobiles would be increased at
least 40 per cent.
ANGOLA
By John W. Bailey, jr., American Consul, Loanda
On account of the peculiar conditions existing in Angola as a re

sult of the comparatively recent development of the automobile
trade, the difficult financial situation, and the vagueness of certain
pertinent laws, it has not been possible to secure satisfactory in
formation covering all phases of installment selling of automobiles.
Most sales in Angola are on the installment plan, but there is no
uniformity in the terms of the contracts made by the different deal
ers—even the transactions of single dealers are not made according
to any uniform terms or form of contract. The information given
below has been provided by one of the most important automobile
distributors of Angola, who says that the terms indicated are those
which he endeavors to use in installment sales but which are not
rigidly adhered to. He states that he is endeavoring to work out
a form of contract that will provide for sales on reasonable terms
43
with full protection for the dealer and be enforceable under the local
laws. Recourse to legal action is to be avoided whenever at all
possible, as such procedure is excessively expensive; a compromise at
a considerable loss is generally considered preferable to court action.
Conditions in the Belgian Congo are reported to be much the
same as in Angola (that is, there is no uniformity of practice with
regard to time sales of automobiles), and most of the information
given below will apply also to that colony.
It is estimated that about 75 per cent of the passenger cars, and
trucks in Angola are sold on the installment plan. As explained,
repossessions are practically never resorted to, the dealer usually
entering into a compromise. The document customarily used is a
hire-purchase agreement. The usual down payment for passenger
cars and trucks (no market exists for busses and taxis) is 50 per cent
of the cash price, the balance in monthly payments. The dealer who
furnished this information allows 5 per cent discount for cash sales.
Used cars are not dealt in by dealers. The usual time allowed for
completion of the purchase is three months, although one large
dealer allows as much as six months.
The charge for financing takes the form of interest at 10 per cent.
Fire, theft, collision, and liability insurance are not required
to be placed on the car: in fact, insurance for motor vehicles is not
available.
The dealer consulted states that the question of repossession has
not come up in his dealings, that care is exercised in the guarantees
of drafts. and that where difficulties have been experienced in col
lecting it has been found advisable to compromise by extending
the time or making a slight reduction rather than to attempt to
sue on the draft.
If the buyer sells the car before completing the payment, it can
be repossessed from the second purchaser. If the buyer becomes
bankrupt before completing payments, the car can not be repos
sessed. . It is not known whether the buyer would be criminally
liable should he sell the car or move to another country without the
consent of the holder of the lien before completing payments. In
case of repossession, it is understood that the original purchaser
loses all that he has paid. The original purchaser can not be re
quired to make up any deficit in the amount received from such a
sale. , Hire-purchase contracts are binding upon third parties
whether registered or not.
The local banks discount installment automobile paper (accepted
drafts) when fully convinced of the standing and reliability of both
the drawer and the drawee. The rate charged is 10 per cent, with
1 per cent additional charged for out-of-town collections. Dealers
seldom carry their own paper. The requirement by the dealer of
other indorsers or guarantors depends upon the financial standing
and reliability of the purchaser. There are no companies engaged in
financing installment sales of automobiles. No European manufac.
turers or agents have time-selling facilities not available to Ameri
can-car manufacturers or dealers. There is at the present time no
active European agency in Angola.
In view of the unfavorable financial condition existing in Angola,
it is not believed that it would practicable to introduce more ade
44
quate automobile installment-sales financing facilities at this time,

and it is not felt that the availability of such facilities would have an
important effect on sales. It is generally believed that the market
is now absorbing as many cars as the financial condition of the
colony justifies.
BRITISH EAST AFRICA
By Charles H. Albrecht, American Consul, Nairobi
Estimates of the percentage of passenger cars and trucks sold on

the installment plan in British East Africa, obtained from the princi
pal motor-car dealers of Nairobi and based, apparently, mainly on
their own business, vary from 33% to 70 per cent, but it is thought
that the true proportion is probably around 60 per cent. Busses are
not sold as such, being made locally from imported chassis; taxis
are merely ordinary passenger cars, without taximeter, used for hire,
and no separate estimates are obtainable for them. A comparatively
small percentage of installment sales of cars and trucks—estimated
by different dealers from 2 to 4 per cent and probably not over 3–
results in defaults justifying repossessions.
Almost all installment sales are on the hire-purchase contract.
In practically all cases one-third of the purchase price is required in
cash; 12 months is usually allowed to complete the purchase. Install
ment sales are confined practically to new cars.
Ten per cent interest per annum, calculated on the balance after
deducting the initial cash payment, is the finance charge. There is
no flat charge.
Fire, theft, collision, and liability insurance are all required to be
placed on the car. The insurance is customarily paid for by the
purchaser at the time of sale, but the premium is also at times spread
over the term of the paper and included in the finance charge. The
finance company may act as insurance agent or broker for placing this
insurance, collecting commissions therefor. If the dealer so acts, he
generally receives a small commission.
The finance company does not insure against risk of default or
conversion.
If the dealer indorses the agreement he repossesses in case of
default. If the finance company undertakes full liability, an extra
charge of 2% per cent on the money advanced to the dealer is made.
and under such circumstances the finance company repossesses. If
the dealer repossesses, the deficit is made up by him; but if the
finance company assumes liability and repossesses, the dealer is not
liable for any deficit.
If the buyer sells the car before completing payments, it can be
repossessed from the second purchaser. It can also be repossessed
in case the buyer becomes bankrupt before completing payments.
If the buyer sells the car or moves to another country without con
sent of the holder of the lien before completing payments, he is
criminally liable. In case of repossession, it is optional whether the
car be sold. No formalities are required, except that the reposses
sion must be by due process of law. If the car is sold, it may be
by either public or private sale. The original purchaser can not be
required to make up any deficit in the amount received from such
a sale. Hire-purchase agreements evidently should be registered.
45
Local banks do not readily discount installment automobile paper,

and automobile dealers do not usually carry it themselves. The
dealer usually guarantees the paper, and other indorsers or guaran
tors are not customarily required.
European manufacturers and their dealers have no time-selling
financing facilities not available to American car manufacturers or
their dealers. It is considered that the present facilities are ample
for all requirements.
EGYPT
By Charles E. Dickerson, jr., American Commercial Attaché, Cairo
Approximately 90 per cent of the passenger cars and 100 per cent
of the trucks, busses, and taxis in Egypt are sold on the installment
plan. It is estimated that about 15 per cent result in repossessions;
dealers state that some 60 per cent result in defaults with subsequent
arrangements arrived at through pressure exercised on the guarantor.
The document most generally used is the hire-purchase agreement;
in a few cases the conditional-sale contract is employed. According
to an authority on Egyptian law, however, the mixed courts, in cases
involving installment purchase contracts, look not at the contract but
at the intention of the parties, which intention they hold is always to
sell, the lease stipulations in the contract to the contrary notwith
standing, and ownership passes at once to the purchaser, the seller
retaining a vendor's lien on the car until final payment.
The usual down payment is one-third for all types of new vehicles,
sometimes less is accepted from a well-known purchaser. The cus
tomary down payment for used vehicles is 50 per cent or more. The
period allowed to complete the purchase is generally 12 months.
Fiat Oriente, S.A., however, allows up to 24 months on its cars. The
period allowed for used vehicles may reach 8 months, depending upon
the value and make of the car. There are, of course, frequent excep
tions to the 12-months rule for new cars. It is apparently true that,
if a client insists, he can, by reason of competition, often get up to
14 or 15 months time from the dealer. Occasionally 18 months are
granted to persons well known to the dealer. Some of the local
nance companies will agree to more than 12 months time under
special circumstances.
The charge for financing usually is a flat rate based on the total
amount outstanding after the initial payment. Fiat's local organi
zation charges interest only.
All-risk insurance has usually been required to be placed on cars
bought on an installment basis in Egypt, but this requirement is
reported as becoming somewhat less common. A clause is inserted
in the policy whereby the insurance is kept at the disposal of the
financing company in case of total loss of the car; in that case the
amount of the installments still outstanding is retained by the financ
ing company and the balance either is returned to the purchaser or
may go as part payment on a new car. The insurance premium is
invariably paid by the purchaser immediately after signature of the
contract.
One or two finance companies act as insurance agents and require
that the insurance be written with their principals. Most of the
dealers also obtain commissions on the insurance they place with
46
specific companies. As the dealer is responsible to the finance com

pany for the satisfactory payment of the bills discounted, the latter
does not insure against default or conversion. There exists, more
over, no credit-insurance system in Egypt. The finance company
is fairly safe, however, for the bills usually carry two signatures and
the dealer who negotiated them is held responsible for the amount
advanced. The dealer further signs a form whereby he holds him
self responsible to the finance company for the amounts involved by
his clients.
In case of default of payment of one of the drafts, the finance com
pany notifies the dealer immediately; the latter usually meets the
unpaid draft himself, instructing the finance company to take the
necessary steps on his behalf and at his own expense and, if no sat
isfactory arrangement can be reached with the purchaser, to repos
sess the car—a somewhat difficult and delicate matter. In case the
finance company is successful in making repossession, the car is re
quired by law to be sold by public auction. Any deficit resulting
from this procedure must be borne by the dealer.
Some contracts used locally reserve the right to the seller in case
of default (1) to consider the contract as canceled, repossess the car
sold, and keep the sum already paid as damages, or (2) to demand the
execution of the contract, claim the entire sum of the matured and
unmatured bills, and then sue for repossession. In the latter case
the sale must be by public auction, if the car is sold for account of
the buyer, and any excess over the debt must be returned to the buyer,
or, if there is a deficit, it must be made up by the buyer. This sale
must be advertised in two newspapers, one in Arabic and one in
French, at least 10 days before the date of sale. I)ue notice must also
be given to the original purchaser of the date of sale. If there is no
buyer or if the price offered is considered too low by the bailiff, the
sale is postponed to a later date, usually 20 days after, and new for
malities must be gone through. Only at the third public sale is the
car sold at the best price offered. The sale is formally required to be
held at the resident town or village of the buyer, but the seller may
request authority to sell the car in another market.
No individual or private citizens, but only merchants doing busi
ness for their own account, may plead or be thrown into bankruptcy
in Egypt. -
In case of resale by the original purchaser before he has com

pletely paid for the car, the seller has no recourse against the second
purchaser if he bought in good faith. In certain instances bad faith
has been proved in the local courts; however, legal action against the
second purchaser is dangerous, for if bad faith is not proved the de
fendant may immediately bring a counter suit for defamation.
Registration of contracts is not required, but advisable, at the mixed
tribunals in Cairo and in Alexandria.
The local banks do not readily discount installment automobile
paper, but if a satisfactory account is carried in the bank by a
particular dealer he can sometimes have his bills, up to 80 per cent
of the total amount, discounted at 6 to 7 per cent; but only a few
dealers, owing to their somewhat precarious financial position, are
in a position to use the banks. A few banks (Barclays and the
Credit Lyonnais) will not handle such transactions at all. A few
47
dealers carry their own paper. With but two exceptions, finance
companies in Egypt hold the dealer entirely responsible for any
default in payment. Unless the purchaser is well known to the
dealer a guarantor is required. About 90 per cent of the paper at
present in the hands of dealers and finance companies carries a
guarantor's signature. The facilities of all the financing companies
operating in Egypt, except Fiat's local organization and one other,
are available to all makes of cars. It will be noted that Fiat is the
only one charging interest only.
It is generally thought the present financing facilities are ade
quate. The dealers stress the bad faith of customers and the conse
quent very high percentage of defaults, especially in the low-price
market in the villages, as a great deterrent to a more rapid increase
in motor-car sales in Egypt. Dealers in American cars consider the
unwillingness of the manufacturers to extend terms to them as their
greatest problem. Most manufacturers demand a letter of credit
opened with order; shipments are often slow, and it is not unusual
for the dealer to have his money tied up four to six months. While
it is, of course, impossible to recommend terms, especially in such a
precarious market as Egypt, it is anticipated that the time will come
when American manufacturers will be forced to relax their strict
practice somewhat, in the case of tried and reliable dealers, at least.
FRENCH WEST AFRICA
By George C. Cobb, American Vice Consul, Kakar, Senegal
French West African dealers do not, as a general rule, sell motor

vehicles on the installment plan. In considering the market there
it is necessary to bear in mind certain local conditions. French
West Africa has a population of about 13.525.212, and of this number
fully 99 per cent are natives, most of whom are not able to pur
chase automobiles on any terms. There are wealthy natives, of
course, who can afford to own cars, but they are able to pay cash
for them. Most of the motor vehicles registered in the colonies
are owned by the Government, trading firms or their agents, and
wealthy merchants who do not have to consider terms or ask for
credit when buying motor cars. One of the principal local trading
firms, which has the agency for a well-known American and an
Italian car and which does the largest motor vehicle business in
Senegal, sells for cash only.
There are other agents, however, of both American and foreign
makes, which give from three to four months credit. In such cases
down payments of from one-third to one-half of the price of the
vehicle is made and a promissory note for equal iºnſ,
payments
over the time allowed is given. It is stated that such credit terms
are given only when the dealer is confident, that the purchaser is
thoroughly reliable. No uniform method has been adopted in regard
to indorsements on the paper, but as a rule indorsers and guarantors
are not required. . It is estimated that the sales of about 15 per cent
of the trucks and 10 per cent of the passenger cars are transacted
on the above-mentioned terms.
48
There are no busses sold locally. The cars which are circulating as
taxis are regular passenger cars. There are several dealers in Dakar
who sell cars for taxis to the natives on the installment plan. The
dealer does not, however, relinquish his rights to the vehicle until
it is fully paid for; it is registered in his name. No information can
be obtained as to the terms of payment where automobiles are sold
in this way, but it is believed that the native driver seldom com
pletes the payments and in the end it amounts to the dealer running
a taxi service and paying the driver either a salary or a percentage
of his earnings. The amount of business so transacted is small.
There is very little trade in used cars in French West Africa, and
there are no regular dealers engaged in that business. The number
of defaults justifying repossession is negligible. Local dealers state
that they do not require insurance to be placed on automobiles sold
on the installment plan. The purchaser usually takes out fire, theft,
and collision insurance on his car for his own protection.
If the buyer sells the car before completing payments, the car can
not be repossessed from the second purchaser. The buyer is crimi
nally liable if he sells the car and moves to another country, without
the consent of the dealer, before completing the payments. In cases
where the purchaser becomes bankrupt before completing the pay
ments, the car can not be repossessed, and the dealer comes in as a
general creditor. Installment contracts are not binding on third
parties.
Banks in French West Africa do not interest themselves in the
automobile retail business.
As far as is known there are no companies in French West Africa
engaged in financing installment sales of automobiles. European
manufacturer or dealers have no facilities not available to American
dealers. At the present time it is not believed that more adequate
facilities would stimulate the sales of motor vehicles.
MADAGASCAR
By John C. Richardson, jr., American Consul, Tananarive
Automobile installment sales in Madagascar are largely a develop

ment of the past two years. A few of the local automobile firms
commenced to sell on time as early as 1925, but the initial payments
amounted to almost the entire purchase price and it was not until
1927 that a system of installment selling in its true sense was adopted
by local dealers. The development of the time-payment method
has since been very rapid, and it is estimated in reliable and well
informed commercial circles that at least 95 per cent of all types
of automotive vehicles are now sold on the installment plan.
The number of defaults justifying repossession is negligible, owing
in large part, no doubt, to a careful selection of risks by the dealers.
The contract provides that in case of default, the dealer shall take
back the car at a price to be agreed upon by the parties, or, failing
such agreement, at the value fixed by appraisers selected or ap
pointed according to the procedure specified in the contract less 15
per cent of the original purchase price, all charges incurred in
connection with the default, and all indebtedness to the dealer in
the form of outstanding unpaid notes with their accrued interest.
49
All cases of default that have so far occurred have been adjusted
without appeal to the local courts.
The agreement almost exclusively adopted is the conditional sale.
One local dealer, handling a French car, follows a different system;
apparently having been granted special facilities by the manu
facturers, he is selling on a hire-purchase plan, under which title
to the car passes by contract to the lessee after a specified number of
rental payments. The plan has been in operation for almost two
years, but the number of cars sold thereunder has been negligible.
Initial payments and periods of credit vary widely. The former
range from one-seventh to one-half the purchase price and the latter
from three months to one year, the terms depending on the busi
ness and financial standing of the customer and also, without doubt,
to some extent upon the condition of the individual dealer's finances.
Credit for more than a year is exceptional, although granted in a
few cases. The balance of the purchase price is generally taken in
the form of several unsecured promissory notes, payable at evenly
distributed intervals over the credit period. A few of the local
firms, in doubtful cases, require that the notes be secured by mort
gages on real estate or other property.
The finance charge takes the form of interest only, figured sepa
rately for each installment and included in the notes. The usual
rate of interest is 12 per cent per annum, but some dealers charge as
low as 8 per cent, the rate depending upon that obtained by the
dealer from the local bank. There are no other finance charges.
Insurance against damage, fire, theft, and injury to third parties
is required under the contract of sale, the policies to be in the name
of the dealer until the final payment is made, and must be taken
out and paid for by the purchaser before or upon delivery of the
car. Several of the local dealers hold agencies for insurance com
panies and, in order to obtain the commission, try to sell the insur
ance for their own company. No restrictions, however, are placed on
the purchaser in his choice of companies.
The dealer repossesses and sells the car. The purchaser is liable
to him for any deficit; the dealer sues him on the notes. It is the
opinion, however, of dealers in general that, notwithstanding the
agreement made in the contract, the car would have to be sold at
public auction should the purchaser insist.
No provision is made in Madagascar for the registration of condi
tional-sale contracts, and dealers are in general ageement that they
would be unable to repossess from innocent third parties. The pur
chaser, however, is criminally liable if he sells the car or moves to
another country without the consent of the owner before the final
payment is made. In case of bankruptcy the car can undoubtedly
be repossessed, but it must be sold at public auction and any excess
turned over to the trustees. No decisions, however, have as yet been
made by the local courts on any of the above questions.
All that has been said in this report applies only to new cars,
dealers not having yet undertaken the sale of used cars.
There are no finance companies operating in Madagascar, and
dealers are forced to carry their own paper. While this paper,
which is generally in the form of unsecured personal promissory
notes of the purchaser. may be discounted, when indorsed by the
50
dealer, with the local banks at rates of from 8 to 12 per cent, the
amount of such paper that the latter will accept depends entirely
upon the financial standing of the individual dealer. Undoubtedly
many of the dealers, owing to a lack of financing facilities other
than those provided by the local banks, have been forced to curtail
their credit sales. One of the largest and best informed of the local
automobile firms is of the opinion that with financing facilities simi
lar to those obtaining in the United States and Europe—namely.
finance companies—sales of all types of automotive vehicles in Mada
gascar would increase at least 100 per cent.
MOROCCO
By Horace Remillard, American Consul, Tangier
Although no statistics are available, it is estimated that 90 per

cent of the sales of cars, used and new, are made on credit in the
French zone of Morocco. Data covering the international and
Spanish zones are likewise lacking, but one reputable dealer estimates
that all taxicabs, 80 per cent of trucks and busses, and 75 per cent
of passenger cars are sold on the installment plant.
It is the general opinion in French Morocco, and probably in the
Spanish zone, that defaults resulting in repossessions amount to not
over two-thirds of 1 per cent. In Tangier, however, the proportion
has been estimated at 30 to 35 per cent of all classes of vehicles, but
it is believed that this estimate is exaggerated, even though reposses
sions are more frequent there than in the other zones, owing to the
keen competition.
In the French zone practically all credit sales are made on a loose
basis without formal contract, the purchaser paying a percentage
in cash and the balance in accepted drafts spread over the installment
period; title passes immediately. In the Spanish and international
zones, however, the conditional-sale contract is used, title passing to
the purchaser only after payment of the final installment. This form
is of long standing, having been introduced, before the establishment
of the protectorate, by the Spanish and Portuguese. Its use is now
widespread.
The customary down payment in the French zone varies from one
fourth to one-third on all classes of vehicles. In the international
and Spanish zones it is 20 to 25 per cent for cars and 33% per
cent for trucks, busses, and taxis. In the case of used vehicles the
initial payment is often reduced further, on account of difficulties
encountered in disposing of them. The down payment for passenger
cars is smaller, for the reason that the purchasers are usually finan
cially stronger and other types of vehicles are given rougher usage.
The time allowed in the French zone for payments is usually 12
months, but drafts are sometimes renewed for another year. In
Tangier conditions are identical, but 18 months are frequently al
lowed. In the Spanish zone the credit period is probably 12 to 18
months.
The usual finance charge in French Morocco is interest at 10 per
cent, sometimes 12. The nature of the charge in the other zones
is not reported. It is not the usual custom for dealers in the French
zone to insist that insurance be taken out on the vehicles sold, the
51
transaction being one of straight credit based on accepted drafts

and the purchaser consequently being given latitude to act as if all
the purchase money were paid up. In Tangier, three agents, all
of whom likewise operate in the Spanish zone, say that purchasers
must take out, at their own expense, a policy covering all the various
kinds of insurance before taking possession of the car, which policy
is usually taken out in the name of the agent. The representative
of an American manufacturer transfers this policy to the finance
agents of his principals. Automobile dealers rarely finance the
insurance charges, although one is the representative of an insurance
company and naturally makes a commission if he sells a policy.
If a dealer pays insurance for his client, he may add it to the price
of sale.
It is difficult to give an absolute opinion on the legal rights of the
seller for the reason that Moroccan legislation is still too new to
show any precedent on many points. In the French zone most laws
are based on French procedure. In Tangier the same state of affairs
exists, but to an accentuated degree, the courts having been func
tioning only since 1925, when the present Government took over
the administration of the international zone; therefore, there are
no precedents of long standing upon which to base decisions.
No contract has yet been devised whereby cars sold on the in
stallment plan can be repossessed automatically in case of failure of
the purchaser to meet installments. It also appears doubtful
whether any contract such as conditional sale, chattel mortgage, or
lien agreement would be binding in the Franco-Moroccan courts.
It is true that sewing machines are sold by a large organization on
the hire-purchase system, and thus far, in case of default or bank
ruptcy, the company has been able to repossess their machines;
however, only small amounts have been at stake in the few cases
which have occurred, and the matter has not been passed on by the
higher courts.
Despite the apparent weak legal position of the seller, however,
dealers in the French zone may sometimes, nevertheless, effect re
possession by appealing to the court for a seizure and taking judg
ment subsequently for the sale of the vehicle. If this plea for
seizure is granted, the car is seized by the court but left in the
hands of the possessor until judgment is rendered, seven or eight
months later. After judgment is obtained the vehicle must be sold
publicly by the court, and the defaulting purchaser can be held liable
for the difference. But, strictly speaking, French Moroccan com
mon law does not appear to admit of any legal lien on a movable
chattel, such as an automobile (unless it is shown that it has re
mained in the hands of the seller—something, of course, impossible),
except, possibly, where it is sold to a farmer so that it could come
under the provisions of the law permitting chattel mortgages cover
ing farming implements. The few cases, therefore, wherein repos.
session has been effected could not be taken as indicative of legal
rights.
If the buyer in the French zone sells the car before completing
payment, it can not be repossessed from the second purchaser. If he
should become bankrupt, repossession is likewise not possible from a
trustee in bankruptcy. In case of the sale of a car not fully paid for
52
by the purchaser, it appears exceedingly doubtful whether such pur

chaser would be held criminally liable. A very clear case of intent to
defraud would have to be presented by the plaintiff. The law in the
international zone is much the same as in the French zone, according
to the opinion of one of the leading legal functionaries in Tangier.
In Spanish Morocco repossession is sustained at law; the dealer
evidently effects repossession and sells. It is not reported whether
the purchaser would be liable to the dealer for any deficit resulting
from the sale of the repossessed vehicle. The seller prevails against
innocent purchasers and against trustee in bankruptcy. Chattel mort
gages are required to be registered with the Bureau de l’Enregistre
ment of the Tribunal of First Instance in the appropriate district,
unless the mortgagor is a citizen of the United States or Great
Britain. It would seem that the conditional-sale contract would also
have to be properly registered.
Banks in Morocco handle automobile paper in the same way as
other commercial paper. Dealers do not usually carry their own
paper, not having the adequate financial resources, except in a few
cases. One dealer in Tangier alleges that he carries all his paper.
In the French zone when the money market is very easy local banks
are willing to discount automobile paper at bank rates, 6 per cent, or
slightly higher. The Société Generale pour le Developpement du
Commerce et de l’Industrie, of Paris, which has a branch office in
Casablanca, accepts 12 months’ paper plus one-half of 1 per cent com
mission. Other local French banks accept three or four months’
paper. In Tangier one French bank, doing most of the banking
operations of the nature described, charges being 7 per cent interest
plus one-fourth of 1 per cent.
There does not appear to be any discrimination of any kind against
dealers in American cars by bankers in any of the zones of the
country. In view of present conditions the financial facilities offered
by the banks appear to be sufficient to enable American car agents
to finance their installment sales.
TUNISIA
By Leland L. Smith, American Consul, Tunis
About 92 per cent of all classes of motor vehicles are sold on the
installment plan. Dealers make no estimates but state that the per
centage of defaults is small.
The document used is the conditional-sale agreement. The princi
pal dealers have formed an agreement whereby one-third of the
purchase price of all new motor vehicles is required as initial pay
ment. On used cars there is no agreement, but it is customary to
demand a higher first payment. Twelve to eighteen months are
allowed the purchaser.
Interest is the only charge that is made for financing. The dealers
charge 10 per cent, 2 per cent more than the bank interest. At the
time of the purchase interest is paid in advance for the coming
three months. Thereafter a statement is rendered for every three
months on the total amount outstanding, which the buyer pays
(usually in advance) in addition to his installments.
53
Fire, damage, and accident insurance are required by the dealers

on all installment sales. The insurance is paid for by the purchaser
at the time of the sale. Dealers do not act as agents or receive com
missions. There is no insurance against default or conversion.
The dealer makes repossession, sells, and bears any deficit. The
original purchaser is not liable for a deficit, nor is he entitled to any
excess over the debt resulting from such resale.
The automobile may be repossessed from an innocent purchaser
or from a trustee in bankruptcy. The purchaser is criminally liable
if he sells or moves the car to another country, without authority
of the holder of the lien, before the final installment is paid. Con
ditional-sale contracts must be registered at the municipality.
Banks readily discount the automobile installment paper of repu
table dealers at 8 per cent. The Citroën is the only make carrying its
own paper. Dealers must indorse all paper presented to the banks
for discount. They sometimes insist upon other indorsers and
guarantors.
American car manufacturers, when once established, enjoy the
same privileges enjoyed by French dealers.
It is not thought that more adequate installment sales facilities
would be compatible with good business in Tunisia; it is felt that
local conditions are to variable to warrant excessive credit.
UNION OF SOUTH AFRICA
By Samuel H. Day, American Trade Commissioner, Johannesburg
Approximately 50 per cent of passenger cars and 30 per cent of

trucks are sold on the installment plan in the Union of South Africa.
Very few busses and taxis are thus sold. The number of defaults
justifying repossession is very small, about 1 per cent.
The hire-purchase contract is used. The down payment is one
fourth and more. The credit period ranges from 12 to 24 months.
The finance charge may be flat rate and interest, or interest only.
Some firms charge 8 per cent on the outstanding amount, reducing
the charge with each monthly payment. Others charge 2 per cent
flat and 6 to 8 per cent for the whole amount, regardless of monthly
reductions in principal.
Full insurance—fire, theft, collision, liability—is compulsory, but
is objected to by many purchasers. Sometimes the purchaser pays
the full premium at the time of sale; in other cases it is included in
the amount financed. The finance company does not usually act as
insurance broker, but occasionally the dealer does so and receives a
commission. Most finance companies insure against the risk of
default or conversion.
In cases of default the dealer repossesses and sells the vehicle,
bearing, as between himself and the finance company, any deficit.
The purchaser, in turn, is liable to the dealer for such deficit. The
sale must be public if the purchaser has paid over 60 per cent of the
selling price of the car. It would seem that any excess would have
to be returned to him.
The seller may repossess the automobile either from a trustee in
bankruptcy or from an innocent purchaser. . Where the purchaser
sells or moves the car out of the country without the permission of
54
the holder of the lien, he is criminally liable. It would seem that

registration of hire-purchase agreements is unnecessary.
Banks do not readily discount automobile paper, but where the
credit of the dealer is particularly good some institutions will dis
count his notes at 8 per cent for three or four months with a renewal
privilege. Many dealers carry their own paper. Dealers indorse
and guarantee their paper and agree to repurchase the car if it is
repossessed. Indorsers or guarantors are required if the purchaser's
signature is not deemed sufficient.
European manufacturers or dealers have no facilities not available
to American dealers; in fact, some American firms have their own
finance companies. Present facilities are entirely adequate.
O
• J
n , , , BUREAU OF FOREIGN AND DOMESTIC COMMERCE
REGETVEB WILLIAM L. COOPER, Director
APR 1 9 1930
C
S. U. LIBRARY
MARKETS
FOR SAWMILL AND WOODWORKING
MACHINERY
IN SOUTH AMERICA
UNITED STATES

WASHINGTON : 1930
T
FOREWORD
The countries of South America present widely varying markets

for sawmill and woodworking machinery. Some factors, however,
are common to all. Hand labor is generally rather cheap: sawmill
and woodworking industries are characterized by many small units
requiring comparatively simple machinery: and, wherever any im
portant demand for machinery exists, considerable competition is
encountered from European manufacturers.
Several South American countries are richly endowed with for
ests: but the timber is so inaccessible or so widely scattered in many
cases that it can not be exploited commercially except with great
difficulty: and much lumber is imported. That condition restricts
the market for high-grade sawmill machinery, and the smaller port
able mills are fairly numerous. In Argentina there is an exceptional
opportunity in connection with the quebracho industry, in which an
attempt is being made to use scientific methods and modern
machinery.
Prospects for the sale of woodworking machinery are somewhat
better. In several of the markets covered by this bulletin the indus
try is still relatively undeveloped and the demand for machinery
correspondingly small, but in others there is a growing tendency to
expand and improve existing equipment. In Chile, for example,
there appears to be an increasing demand for better equipment along
certain lines following an expansion in public and private construc
tion and an improvement in the business situation. In Argenina the
increasing demand for furniture and other wood products, especially
in Buenos Aires and other large cities, has resulted in a certain im
provement in woodworking equipment. There, and also in Brazil.
the industry is still in the hands of many small operators of compar
atively small capital, however.
This bulletin describes in some detail the sawmill and woodwork
ing industries of the various countries of South America, the type
and origin of the machinery now in use, and gives suggestions as to
the best methods to secure new business, with the purpose of giving
the United States exporter a practical idea of the present situation.
It is believed that the bulletin will be of material assistance to
American manufacturers in introducing new types of sawmill and
woodworking machinery and in increasing sales of lines already
established.
This bulletin is one of a series reporting a world survey made by
the Industrial Machinery I)ivision of the Bureau of Foreign and
Domestic Commerce. That division will be glad to reply to specific
inquiries from qualified American exporters on any of the subjects
covered in this publication.
WILLIAM L. Cooper, I) irector,
Bureau of Foreig/n and 100m estic Commerce.
A PRIL. 19:30.
( II )
MARKETS FOR SAWMILL AND WOODWORKING
MACHINERY IN SOUTH AMERICA
ARGENTINA
By Charles H. Ducoté, Assistant Trade Commissioner, Buenos Aires
SAWMILL INDUSTRY
One of Argentina's most valuable natural resources is its forests,

forest products exported during 1928 having amounted to $24,419,
110, constituting about 14 per cent of the total exports. The forests
exploited are mainly in the northern part, near the boundaries
with Bolivia, Paraguay, and Brazil, the largest forest region being
known as the Grand Chaco. Besides the Chaco, Argentina has
considerable forested areas in western Patagonia, along the Chilean
frontier. In that section beech in several varieties predominates
and is known locally as roble (oak). To the south softwoods are
frequent but scattered. Cedar and larch occur in patches between
the beech forests. There are very few mills in that part of Argen
tina, and they operate only to satisfy the local demands of the
sparsely settled rural communities. wing to the great distance
from the consuming centers—Buenos Aires, Rosario, Santa Fe,
etc.—and the consequent heavy transportation charges, the southern
forest regions are practically negligible as sources of lumber. The
small sawmills located there, therefore, because of their small num
ber, the primitive methods they employ, and their small output of
simple products hardly warrant attention as markets for American
sawmill machinery.
Many of Argentina's woods, especially those in the northern sec
tion, are hard, heavy, dense, and expensive to work. The largest
demand for domestic lumber is in timber form for bridges and tres
tles, dock works, crossing planks, water-tank foundations, railroad
crossties, fence posts, etc.
Owing to the existence in northern Argentina of the quebracho
extract industry, requiring logging and sawmill operations, it has
been possible to develop a small industry concerned with the prepara
tion of alder, white quebracho, and popple lumber for the Buenos
Aires market. This lumber is prepared into pieces of 8 to 10 feet
and with a diameter of from 2 to 8 inches, rough, and it is piled on
barges and shipped down the Parana River to the consuming centers.
In all Argentina there are perhaps 20 sawmills. The mills in the
southwestern section, as already stated, are very small and supply
the small demand of the neighboring towns. The mills in the north
supply the demand of Santa Fe, Rosario, Buenos Aires, and many
small towns located on and near the Parana River. Those mills, also,
are of very small capacity.
(1)
2
QUEBRACHO INDUSTRY
One of the most important phases of the Argentine lumbering

and sawmill industry is that concerned with quebracho, for both
the preparation of quebracho extract and the exportation of que
j. logs to the United States, Germany, and a few other coun
tries where there are facilities for the manufacture of quebracho
extract. It should also be noted that large quantities of quebracho
are used in Argentina for ties, fence posts, etc. The various divi
sions of the quebracho industry, however, are, in order of importance,
preparation of the extract, preparation of the logs for export, and
local manufacture of lumber products.
Owing to its importance as one of the major industries in Argen
tina, it would seem worth while to consider in this connection the
quebracho-extract industry, as an attempt is made to use scientific
methods in the handling of the logs, and modern equipment is found
in the sawmills and the wood-preparation sections.
The first quebracho-extract factory was set up in Argentina in
1902, in the Chaco. At present there are 32 factories in South
America, 27 in Argentina, and the remainder in Paraguay. .
The Argentine and Paraguayan factories taken together represent
a total investment of 180,000,000 paper pesos (approximately
$75,600,000) and have a total maximum production capacity of about
400,000 tons of extract per year. -
In the quebracho sawmills and extract factories, inasmuch as a

large proportion of the capital involved is European, the machine
in use is usually British, German, French, or Belgian, althoug
American circular and band saws are used to a large extent. In
view of the unfavorable condition of the quebracho industry at the
present time, the only purchases of machinery and equipment are
those necessary in the course of normal operations. Extensions to
existing facilities are not likely to be made, as the quebracho forests
are expected to be entirely destroyed in the next 30 to 35 years.
The plants have been operating for some time at part capacity.
GENERAL EQUIPMENT AND METHODS
The Argentine sawmills find little incentive to increase the amount

or quality of their equipment or to introduce labor-saving methods
tending to increase production. The importation of lumber from
abroad is done on such a large scale that the market for Argentine
lumber is very clearly defined and is already being supplied by the
existing sawmills. . To install modern, costly machinery would
merely increase capital expenditure without affecting fundamentally
the factors that militate against the greater use of Argentine saw
mill products, which are principally lack of extensive forests of
woods in demand and high transportation costs. From the begin
ning, sawmills in Argentina have made use of human labor in the
handling of logs and lumber, hence the conveying devices and ma
chinery in use are very primitive.
No special attention has ever been paid to wood utilization in
preparing imported lumber. There is no importation of logs; there
fore, the usual wastage in the form of slabs, top logs, etc., is not
encountered. The only wastage is in the form of pieces which are
3
left over from cutting up the large sizes into smaller sections. The
high cost of lumber acts naturally to cut down this loss as much as
possible. In the preparation of lumber from logs of Argentine
origin no attention is given to saving and utilization.
A large proportion of Argentine sawmills, perhaps 90 per cent,
use electricity as a source of energy. In all cases where new power
equipment is to be installed electrical equipment is used. Mills over
10 years old have utilized steam-boiler plants. Extensions and re
placements in recent years have largely increased the use of electrical
equipment. The absence of deposits of coal in Argentina and its
consequent high cost, as well as the high cost of other fuels, leave
little room for doubt that the use of electrical energy in sawmills
is to become universal.
Kiln-drying equipment for the seasoning of lumber is not used.
Climatic conditions in the lumber regions are such that seasoning
may be very satisfactorily done by merely stacking the lumber out
in the open. Deliveries are then made from the piles that have been
standing in the open the required minimum of time.
INDUSTRIAL RAILWAYS
As stated before, the most important organizations conducting

lumbering operations in Argentina are the quebracho-extract manu
facturers, the most important of whom have found it necessary, be
cause of geographical conditions, to construct extensive industrial
railway systems on their properties for handling the logs. One large
company, for instance, which owns 2,800,000 acres of land in north
ern Argentina and plants with a capacity of 165,000 metric tons of
extracts, has found it necessary to maintain and operate a railway
system 400 miles in length. A second company has a line 29 miles
long and transports annually about 9,000 tons of lumber. Another
company also operates an industrial railway which is 38 miles in
length. Only part of the system is used as a lumber-transport
system. Still another concern operates extract factories capable of
producing about 110,000 tons per year. Two railroad systems, hav
ing a total length of about 80 miles, are used to convey the logs
from the forests to the mills. In addition, it has an industrial rail
way line 17 miles in length feeding the extract factory at Colonia
Benitez.
A lumbering company operates two industrial railways in connec
tion with its forest reserves in the Province of Santa Fe and the
Territory of the Chaco. That company has large land holdings and
sawmills in the northern forests of Argentina. Another firm oper
ates a short industrial railway for the use of its lumbering camp in
the Province of Catamarca. . Another lumbering company operates
23 miles of line for the exploitation of its timber lands in the Prov
inces of Santiago del Estero and Catamarca. That company has
100,000 acres of woodland. Still another company owns 25 miles of
line which it uses in the preparation and transport of firewood. The
company, also operates a sawmill. A lumbering company whose
chief business is to secure and sell firewood operates an industrial
railway 26 miles long in connection with its forestal operations at
Quilino, Province of Cordoba.
4
All of the operators of the industrial-railway systems mentioned

have found it necessary to develop an extensive system of rough dirt
roads or paths through the forests in order to transport the logs
from the forests to the railway lines. On these roads horses,
bullocks, and automobile trucks are used, the logs being prepared
in the forest to permit of easiest handling. Logging machinery is
not used to any extent, although some attempts have been made in
the past to introduce improved felling, stripping, and log-handling
gear. The cheapness of human labor and the natural tendency to
continue using old-time methods have, perhaps, been the main rea
sons for the lack of success.
IMPORTS OF SAWMILL MACHINERY
American machinery firms have not been exporting sawmill ma

chinery to Argentina in anything like significant amounts, the aver
age yearly value of shipments having been only about $25,000.
Imports of sawmill machinery are not separately classified in the
Argentine customs statistics, and it would, therefore, be extremely
difficult to determine the total amount of imports. Some equipment
is known to come from France, I861gium, Great Britain, and Ger
many. Considerāble success has been experienced by American
manufacturers in supplying the demand for circular and band saws.
I)uring 1924, 1925, and 1926 there were imported 258,652, 310,427,
and 270,043 kilos, respectively, of saws of all kinds, of which the
United States supplied an average of about 35 per cent. The re
mainder of the demand was supplied by German, French, and Bel
gium manufacturers, in that order. Detailed figures of imports of
saws in 1927 and 1928 are as follows:
IMPORTS OF SAW's INTO ARGENTIN.A
Kind 1927 1928
Small handsaws------------------------------------- - - - - 80, 663 123,618

Handsaws with handles - - - - - - - - - - - 732 840
Iarge cross-cut saws---- 14,019 21, 169
--
Circular and band saws-------------...-------...-------------------.

--
- : 151,917 202,236
In supplying the demand for saws of all types American manu

facturers have been in the lead. They have supplied equipment
better able to handle the hardwoods of Argentina. such as white
and red quebracho, etc. The mechanism for bringing the wood up
to the saw is usually very simple in Argentine sawmills, being
usually made of quebracho and fabricated on the spot. For han
dling softer woods, such as cedar, Iłolgian saws and carriages are
often found, the feeding mechanism being in many cases automatic.
WOODWORKING INDUSTRY
The woodworking industry in Argentina is almost entirely taken

up with the manufacture of furniture, boxes, doors and windows,
and a few miscellaneous wood products. As an outlet for American
machinery, the woodworking industry is much more important and
more worthy of consideration than the sawmill industry.
•)
Owing to the fact that IBuenos Aires and neighboring sections are
the localities in Argentina offering greatest demand for wood
products, the larger and more important plants are to be found in
Buenos Aires, although a host of smaller establishments are found
throughout the interior of the country. It has been stated that there
are about 840 woodworking plants in Argentina, 140 of which are
located in Buenos Aires.
The many small plants make use in large measure of hand
work and have only a very small output. Moreover, it should be
pointed out that many of the establishments are nothing but small
sawing plants whose work is concerned with the sawing up of fire
wood, rough planking for construction, etc., and which are not wood
working plants in the strict sense of the word.
The furniture-manufacturing industry is easily the most important
of the woodworking industries in Argentina. In 13uenos Aires alone
"there are seven large manufacturers whose products include all of
the most important furniture articles in use in Argentine homes.
The furniture industry has been developed to such an extent that
local demand is almost entirely supplied by it. Two or three of the
firms, moreover, produce articles comparable with those produced in
factories in the United States and Europe. In addition to the fur
niture factories in Buenos Aires, there are about 550 medium and
small plants located in the various population centers of the interior.
During recent years a steady increase has been taking place in
Argentina in the demand for office furniture, most of which has
been imported. The local manufacture of oſlice furniture has been
increasing also, and at the present time there are about 10 office
furniture factories of medium and small importance. Manufacture
of office furniture is expected to continue on the increase in Argen
tina, with the probable expansion of existing factory facilities.
An important section of Argentina's industrial life is represented
by the manufacturers of doors and windows and interior woodwork
in buildings. There are 37 factories in Buenos Aires engaged in
manufacturing doors and windows. All of these factories, however,
are also manufacturers of rough furniture, boxes, and the like. A
small number of the factories make doors for stock which are much
cheaper in cost than those imported from the United States, al
though the workmanship and materials are inferior. Panels are
usually of pine or spruce. There are several mills in Rosario whose
work is of fair quality. These mills use native cedar to some ex
tent, but the greater part of their lumber is imported.
There is a large demand for ornamental wood turnings, such as
posts, pillars, balusters, handrailings, etc., for use in interior (lectra
tion and finish. A large amount of such material is also used by
furniture manufacturers, many of whom do not have their own turn
ing lathes or whose demand is so small that it is cheaper to purchase
from a manufacturer. The seven mills in Buenos Aires and three
or four small ones in Rosario and Santa Fe appear to be supplying
the market successfully.
Besides the furniture manufacturers, some mention should be made
of the small furniture and cabinet makers doing artistic work, chiefly
by hand. There are about 60 such establishments in Buenos Aires.
6
As their output is largely handmade, there would be practically

no demand from them for woodworking machinery, although some
may be interested in small portable equipment, such as drills,
polishers, etc.
Apart from the regular woodworking plants, there are said to be 26
box-making plants in Buenos Aires. In the interior very little de
velopment has been made in box making. The industry has paid
little attention to quantity production and standardization, and the
equipment used in most of the plants consists only of a handsaw
and a planer, usually imported from France or Belgium. Some of
the box makers are beginning to make use of plywood in certain types
of boxes. The plywood used in box making arrives in squares of 3
to 5 feet, 3 to 4 millimeters in thickness. Besides birch, some success
has been obtained from the use of alder plywood from Russia. Ply
wood importers are expecting a great increase in the use of plywood
in boxes and feel that an impetus would be given to its use were it
possible to obtain machinery capable of making boxes of various
sizes automatically or semiautomatically. One factor making for
high cost of plywood boxes is that handwork has been used almost
entirely. -
EQUIPMENT AND METHODS
In general, Argentine woodworking plants, furniture factories,

sash and door mills, etc., work with very small capital, have a small
output, and use very little modern labor-saving mechanical equip
ment. Bench saws and planers are usually of extremely simple
types and, except in a few cases, do not have automatic feeding and
stock-handling attachments. There is no demand whatever for large,
high-speed, high-output planers, matchers, surfacers, and the like.
Machinery of these classes, of American manufacture, has been said
to be too complicated for use by the type of labor found in the local
woodworking mills. Another factor working against American ma
chinery is its high cost as compared with European machines, which
come to Argentina in the very simplest types and are sold at prices
so much lower than those quoted on American machines as to permit
of practically no competition. That American manufacturers are
able to offer machinery of greater speed and production has very
little influence on demand and sales.
Woodworking mills make much use of band saws of simple types.
These machines, also, are usually of European origin, although the
saws in many cases are imported from the United States. Although
there is no separate classification in the Argentine customs statistics
for woodworking machinery, it is known that Belgium and French
machinery predominates in the market. Some of the woodworking
machinery in the larger plants comes from Germany and Sweden.
Imports from the United States are very small, indeed. The Argen
tine woodworking industry has developed without any attempt at
organization of those in the industry, with a consequence that there
are many very small plants, all working in competition. There
is no apparent tendency to a unification of forces and the building
of modern factories. Under the present conditions it will be difficult
to introduce American machinery.
Most of the woodworking mills are able to obtain a steady and
reliable supply of electricity, and many have availed themselves of
7
the opportunity of purchasing low-priced portable equipment. Small

electric-driven portable saws also are coming into the lilarket in
increasing quantities. These tools are usually of Aimerican manu
facture.
[The Commercial Intelligence Division of the Iłureau of Foreign and Domestic
Commerce has on file lists of the principal Argentine quebracho-extract factories,
woodworking establishments, and furniture factories. These lists are available
to qualified American firms on application to that division at Washington, D. C.]
BRAZIL
By Gregory H. Eickhoff, American Trade Commissioner, Rio de Janeiro
SAWMILL INDUSTRY
In a consideration of Brazil’s lumber and milling industry it is

well to bear in mind that it is estimated that 50 per cent of the
country is covered with forests of one sort or another. Two hun
dred and fifty-four varieties of timber have been named, classified,
and tested. The nature of the forests makes the exploitation of
any one variety difficult and expensive, there not being enough trees
of any one variety in a reasonable area to justify the use of mechani
cal methods. Traveling jobbers contract with landowners for logs.
These are sold in the consuming centers and sawed in local mills
to meet the demands of individual consumers.
Until the beginning of the pine industry in the State of Parana
softwood lumber reached Brazil from Russia, Scandinavia, and the
United States; following the erection of mills the imports have
gradually decreased, until at present only heavy timbers, box shooks,
and certain other special cuts are in demand. American timber
cruisers have placed the commercial stands at 5,000,000 M feet, the
combined mills of Parana having an annual capacity of 100,000 M
feet. At present the market is suffering from overproduction, which
has compelled many small mills to shut down.
The following table shows Brazil's imports of lumber. Data on
the origin of the imports are not available.
IMPORTS OF I.UMLER INTO ISI:Azii.
Year Kilos Value
| 1,661,700
|
$60,998
| 1, 384,707 || 79, 617
| 3, 458,958 145, 265 |
In 1927 Brazil exported 199.611.296 kilos of lunuler valued at

$2,872,720; in 1928, 112,487.988 kilos, valued at $2,685,860. Milled
planks and boards accounted for 1.480,719 kilos in 1927 and 1,368,
879 kilos in 1928. Approximately 60 per cent of the exports go to
Argentina; the remainder, principally hardwoods, goes to all parts
of the world.
There is thought to be but one company in Brazil having a modern
plant with a complete American installation. Others use German,
English, Belgian, and French machinery, buying United States
102809—30—2
8
materials when they are competitive in price with the European

products. American saw manufacturers have enjoyed a fair turn
over, well-known brands being carried in stock for discriminating
buyers.
Where carriages are used the belt-type feed is generally installed.
Small mills are satisfied with simple steel rollers in a metal frame.
Mills are content with their present equipment. Owing to the
present state of the lumber market, none are contemplating improve
lmeints.
One mill handles its logs with steam skidders to railroad and
hoists and conveyers at plant. The average operator uses oxen for
skidding and manual labor at his mill. Lack of capital investment
combined with low wages permits owners to make a profit using the
most primitive methods.
The waste caused by a wide cut is an unimportant factor in the
local lumber industry. Wood utilization, economy of operation, and
recovery of small cuts, ends, and slabs is unknown.
Two large mills use wood-fuel boilers for their power equipment,
others use water wheels or electric motors: no coal-fired plants exist.
Lumber generally reaches the market in the form of rough planks,
the buyer reducing it to his requirements, either in the shop or on
the job. Practically no kilns are used. Cabinetmakers and other
woodworking shops buy green timber, holding it until it reaches the
point of dryness they consider necessary.
In the city of Rio de Janeiro 50 plants have sawing and planing

machinery. In addition, 93 small carpenter shops make furniture,
doors, sashes, boxes, and cabinets. No airplane plant yet exists,
nor do any of the mills or shops turn out materials until ordered.
Employment is constantly fluctuating, owing to the uncertainty of
orders. As the European apprentice system is followed, many
young" boys are seen working next to grown mechanics. With the
low wages existent plus the speed and efficiency of local craftsmen,
many shops have found machinery uneconomical.
It is estimated that less than 10 per cent of the machinery in
use comes from the United States. No criticism exists against
American equipment; however, the prices and credit terms range
much higher and shorter than those offered by European competitors.
German, Delgian, and French manufacturers are installing elec
trically driven machines in shops on the installment plan. Final
payment is usually made at the end of two years.
The average small shop is usually equipped with a wood lathe.
a band saw, a scroll saw, and a saw table. The large establishment
will have. in addition to the above, dadoing, shaper, joiner, and
planing machines. Ninety-five per cent of all shop machinery is
electrically driven. -
Peroba is the wood commonly used for tables, chairs, cabinets, and
first-class interior doors. High-class furniture is fabricated from
jacaranda, or imbuya veneer. Cedro or a hardwood enters the
sash-frame and door line, the wood used being a matter of price and
personal selection. Practically all shopwork is of a very high grade.
9
The tendency is toward small shops; large plants are not consid
ered so efficient, owing to the peculiar temperament of the workers.
The Brazilian woodworking business is in no way comparable with
similar organizations in the United States.
Typical wages are as follows: Doys (apprentices), 5 to 7 milreis
per day; helpers, 7 to 10 milreis per day: cabinetmakers, 12 to 15
milreis per day. (One milreis equals 12 cents.) In many shops
chairs, sash, and frames are made on a piecework basis.
All machinery installations made during the last two years are
of the direct-drive type; other belt equipment is belt fitted.
Price is the ruling factor in machinery sales, with long-time credit
terms general.
[Lists of sawmill and woodworking plants and distributors of Sawmill Ina
chinery in Brazil may be obtained from the ('on\mercial Intelligence I)ivision
of the Bureau of Foreign and Domestic Commerce, Washington, D. C.]
CHILE
By Robert G. Glover, Assistant Commercial Attaché, Santiago
The impetus given to the domestic manufacturing industries in

Chile during the past two exceptionally prosperous years has appar
ently favored woodworking establishments to a greater extent than
others. The large and diversified construction program which the
Government has been carrying on since the latter part of 1927, to
gether with increasing activity on the part of private capital in both
business and residential buildings, especially in recent months, has
resulted in an abnormal demand for all classes of lumber and
furniture.
The Government, in conformity with its policy of encouraging the
building up of national industries in which the country possesses an
abundance of raw material, has given both sawmill and woodworking
industries ample protection by placing an almost prohibitive duty on
the importation of lumber, furniture, and other items manufactured
from wood. Woodworking plants have been enjoying unusually
good business and will continue to prosper for some time to come,
since there is a heavy building program in progress.
All together, there are 14 different ki::(ls of Chilean timber which
are abundant enough to be exploited commercially. They are alamo,
laurel, roble pellin, coigüe, olivillo, ulmo, rauli, lingue, cypress, alerce,
litre, luma, mafiiu, and tenio. Most of them require air drying on
account of the excessive amount of water or sap they contain.
SAWMILL INDUSTRY
Circumstances in Chile have resulted in the sawmill and wood

working industries becoming almost entirely separated. Logging
is very expensive because the principal timber growths are found
either in the swampy low lands or on mountain sides; and as the
lumber market, up until the present time, has been somewhat small,
very few concerns with sufficient capital to make proper installations
for cutting lumber on a large scale have been attracted to the Chilean
sawmill industry. . Most of the lumber, even to-day, is sawn in port
able mills whose daily capacity ranges under 10,000 feet.
10
Instead of cutting lumber to special order, as is the practice in

the average lumbering country, mills follow the practice of squaring
the larger sticks suitable for remilling purposes and cutting standard
sizes, such as 2 by 4, 2 by 6, 2 by 8, 4 by 4, and 1 inch boards. No
attempt is made to finish lumber for the consuming trade, but in
stead it is stacked to air dry and is then sold to concerns engaged in
remilling and selling to the consuming trade.
Remilling concerns generally send buyers, who are also their
inspectors, to the small sawmills, where stocks are purchased and
inspections are made at the same time. Stocks are generally selected
that have been stacked from 6 months to 2 years: that is, where
lumber is to be used for finishing purposes or turned into furniture
and cabinets. The principal lumber-retailing companies own their
own freight cars, and one concern, in addition to having its own cars,
has coast wise steamers. In past years lumber people were often
held up on shipments, owing to a shortage of railroad rolling stock,
and for that reason the large firms acquired their own cars. Now
that railroads have improved their service, there is no further need
for lumber concerns to follow this practice.
The woodworking plants, like the sawmill plants, are mostly small
concerns engaged in supplying the demand in the locality in which
they are situated. There are, however, a few large firms which
have lumberyards and remilling plants in different sections of the
country, but they seldom attempt to sell or ship finished lumber
outside of the community in which their remilling plant are located.
Carpenter labor is still very cheap, the average being around the
equivalent of $2.25 and $2.50 per day. Railroad freight rates are
high, and at the same time there is practically no standardization
in building materials, which makes it very difficult for large plants
to operate on mass-production principles and sell to retail lumber
yards throughout the country. Practically every building has dif
ferent specifications for doors, sash, and moldings. Since Chilean
carpenters are quite efficient and relatively cheap, they have been
successful in underbidding the larger planing mills, especially in
localities other than where the most important plants are located.
The same conditions exist in the funiture and cabinet industries,
except that the machinery is less modern. The latest statistics, pub
lished in 1925, show a total of 203 woodworking plants in Chile,
representing a total investment of 57.272.457 pesos (about $6,875,000)
and giving employment to 4,448 persons. No doubt the number of
plants to-day is twice that of 1925 and the employees around 10,000.
Without doubt the amount of capital invested has increased in the
same proportion, if not more.
TYPES AND SOURCES OF MACHINERY USED
Import statistics are not in sufficient detail to permit an analysis

as to the number and type of units of woodworking machinery
imported, since both sawmill and woodworking machinery are
grouped under the same heading. The following are the figures for
1927 and 1928:
11
IMPORTS OF SAW MILL AND Woodwork ING MACHINERY INTO CHILE
1927 1928
Country of origin }–——, —— - — I
KiloS PeSOS 1 Kilos Pesos i
Germany---------------------------------------------- 157, 701 436, 797 81. 174 228, 424

Belgium-- 73, 610 103, 153 32. j. 79, 174
Argentina--- 210 200 ----------------------
United States- 4 1,065 347. 527 | 130, 116
, 43. 100, 108 9, 234
!)4, 524 | 89, 626
- 16, 949
4,800
29, 100
Totill------------------------- --------------- 305,314 1,099.958 : 174, 537 587, 513
1 The Chilean peso is equivalent to about $0.12.
Although 1828 was decidedly a better business year for sawmill

and woodworking plants, machinery importations fell of almost 50
per cent over the previous year. This decline was largely due to
heavy orders placed by a few of the larger mills in 1927 for high
production units. Another factor was that the numerous small
furniture factories began expanding very fast that year.
As will be seen from the above figures, Germany is the largest
supplier of machinery, with the United States second. Germany
furnishes the largest volume in cheap and small equipment, whereas
the United States contributes almost all of the larger units or high
production machines. Both l'rance and Belgium are also com
petitors in the low-priced market, but neither country has so a wide
a distribution as Germany. In Santiago and Valparaiso, the largest
cities in Chile, about 50 per cent of the machinery and mill-supply
houses represent German manufacturers, and any great increase in
United States participation in the trade is dependent on establish
ing more distributors who will actually carry in stock a variel line
of woodworking machinery.
METHODS IN WOGUE
Labor costs, although they have been steadily rising, have not yet
reached the point vºilerc lumber mills and woolworking establish
ments are compelled to install labor-saving units and higher-produc
tion equipment. Average wages paid mill superintendents in a plant
which employ, around 100 men are from the equivalent of $3.50 to
$4.50 per day: sawyers in remilling plants draw about $2 to $2.50
per day: lumber inspectors, $1.50 to $1.75: common laborers average
about $1: cabinetmakers and wood carvers receive from $3 to $3.50.
Naturally, with a low wage scale, small plants are reluctant to buy
modern and high-production machinery. The few mills that have
installed American machines seldom run them at the maximum
capacity. Practically no planers, molders, matchers, or surfacers
are geared to feed at over 150 feet per minute: as a matter of fact,
many feed less than 100 feet per minute. Mill owners claim that
machine operators are not sufficiently skilled to turn out good
quality work at high speed: therefore, they prefer to run their ma
chinery at low speed even though it may be high-production equip
12
ment. The quantity of special equipment in the larger mills, such

as special sanders, multiple cutting-off saw frames, sawing and
dadoing machines, universal saw benches, variety saws, and mitering,
beveling, and other types of automatic machines, is very small. The
tendency is to use hand labor for many operations.
EQUIPMENT IN USE
Saws and band-saw frames of the larger types are mostly im

ported from the United States. Small and slow-speed equipment
is generally supplied by European manufacturers, the majority
being imported from Germany, with the remainder coming from
Belgium and France. During 1929 a few large band-saw frames.
were imported from Germany, owing to price, but in practically
every instance the speed of the machine is relatively slow, and the
machine is used where daily production is not a vital question.
Saw hammering, filing, and brazing equipment, even in the larger
plants, is very inadequate, and also for the most part old ...]".
ment. For the larger mills the United States supplies most of the
market's requirements.
European manufacturers are at the present time supplying over
60 per cent of all planer knives sold in Chile. Germany, Sweden,
France, and Belgium supply all of the cheap knives imported. A
large foºndry in Chile lººkes a few: knives: lºt as the European
article is very cheap and of about the same quality, it is unlikely
that this concern will increase its activities. American-manufac
tured knives are used only on the larger or higher-production units,
and as the number of such machines is not great compared to the
small and slow-speed machines, importation of knives from the
United States will continue to be of little importance unless Ameri
can concerns advertise more extensively in the interest of their
product. Every establishment appreciates the high quality of
American-made knives, but since European prices are anywhere
from 40 to 60 per cent less, the small plants generally use the cheaper
type.
*illough the furniture and cabinet industry has had a large
growth during the past two years, there is hardly a plant in Chile
that can be classified as modern. As these small plants have been
growing they have gradually added new machines, not taking into
consideration standardization or cost of production.
MARKETING INFORMATION
Generally speaking, whenever new equipment is needed, price is

the governing factor, and this naturally militates in favor of Euro
pean manufacturers. There appears to be little likelihood of Ameri
can manufacturers participating to any large extent in the demand
for furniture and cabinet machinery until such time as local plants
reach a high-production stage or manufacturers send engineering
salesmen to the market who can outline to the respective plants the
advantages of modern machinery and show them that by putting in
labor-saving equipment they will not only lower production costs
but turn out a better grade of work. In view of the small market
for furniture and cabinets, together with other conditions mitigating:
13
against large plants, such as high freight rates and low carpenters'
and cabinetmakers' wages, it is problematical whether the expense
and effort would justify the undertaking.
Practically 95 per cent of the woodworking establishments in Chile
are run by electric power. Only one plant that is of any size has
direct driving equipment; the others take their power from the main
shaft or counter-driven shafts. Current at 380 volts, 3 phase, 50
cycles is most common in Chile; however, there are still some places
where 440-volt direct current is used. The tendency seems to be to
standardize on alternating current; and manufacturers should, in
general, avoid quoting on machinery equipped with direct-current
motors.
OUTLOOK
Notwithstanding the fact that the tendency of both planing mills

and furniture and cabinet factories is toward small plants, there is an
opportunity for American manufacturers to sell some equipment in
Chile. For example, at the present time, less than a dozen of the
better woodworking plants are equipped with dust and shaving
blowers. Ilikewise, there is an increasing demand for dry-kiln equip
ment, especially since stocks of air-dried lumber are very low at the
present time and will continue so. Sawmills will be unable to pro
duce a sufficient quantity of lumber whereby 12 months’ supply can
be stacked for air-drying. as has been the case in past years. It is
estimated that 80 per cent of the woodworking establishments in Chile
do not have dry-kilns, and in those now in use the equipment is very
old and entirely inadequate to take care of requirements when it comes
to passing all their lumber through kilns before workng. Most of the
Chilean lumber can not be dry-kilned immediately after being sawed,
but must be stacked for air-drying for at least 6 to 10 months: after
that it can be successfully used if it is passed through kilns.
Labor-saving equipment for lumber handling and stacking is
unknown in Chile; but now that labor costs are rising and will con
tinue to do so, some headway can be made in inducing mills to in-tall
this class of equipment.
American manufacturers stand little opportunity of increasing
their business in the Chilean market unless they are willing to send
their own representatives to call on the trade, as practically none of
the machinery and mill-supply houses pay very much attention to
soliciting the woodworking trade, but instead merely await for cus
tomers to come in and ask for quotations.
[I,ists of the 101 incipal Woºdworking establishments and distributors of Saw
mill and woodworking machinery in ('hile are available in the Commercial
Intelligence I)ivision of the Bureau of Foreign and I)omestic ("ommerce,
Wasl.ington, D. ("..]
COLOMBIA
By Walter J. Donnelly, American Commercial Attaché, Bogota
SAWMILL INDUSTRY
The sawmill industry in Colombia is very crude in its present stage,

with the exception of that at Barranquilla, where there is a modern
band mill. One company is installing a band mill near Bogota, but it
is not yet completed. The industry as carried on in the section sur
-
14
rounding Bogota consists of various portable circular-saw mills which

are operated in an antiquated manner. The wood is sold green as it
comes off the saw. A large annount of lumber is cut out of the iogs
by hand in the old whip-saw fashion.
A great many different types of timber are growing in that section,
practically all of which are commercial woods and some of an excep
tionally ſine quality. The majority of the wood would be classified
as hardwood, but there is a quantity of softwood available. With the
exception of three or four kinds, they are entirely different from the
woods in North America. The most expensive are pino, cedro, and
nogal.
Numerous individuals cut forests on their own property, using
either the whip-saw method or small circular-saw mills.
With the exception of that around Barranquilla, the lumber in
dustry in Colombia is the same throughout the country. However,
a great variety of timber is to be found in the different sections; for
example, the timber growing at low altitudes, in the “hot country,”
is entirely different from the timber at high altitudes; the stands at
the high altitudes are much heavier and contain more commercial
trees.
Most of the machinery used is of American manufacture and
mainly the product of one company. No gang saws are used, and
the only band saws in Colombia are those employed by the previously
mentioned companies. The types of carriages used vary.
The lumber industry in Colombia is inadequately equipped, but
steps are being taken to improve the type of machinery and the
methods. The increase in the cost of labor in 1927 and 1928, owing
to the development of public works, has created a demand for labor
saving devices; but as yet these are practically unknown throughout
the country.
Most of the logging in the various lumber industries is done by
oxen. Ilogs for the band mill at Barranquilla are carried down the
Magdalena River in rafts, . One company plans to use gravity log
slides, also caterpillar and high-lead logging methods. With these
two exceptions, the mills are taken to the logs, not the logs to the
mills, or the trees are cut and sawed by hand where they are felled.
In cases where the portable mills are moved periodically to different
parts of the timber the logs are hauled by oxen to the mills until a
small territory has been cut, and then the mills are again moved to
better timber. Adequate conveyer facilities and loading devices
are unknown.
Colombia is rich in timber, with quantities of exceedingly fine
hardwoods; but owing to the difficulty of transportation, practically
no lumber is exported. Because of the wealth of timber, no efforts
are made to reduce the kerf, and in a great many forests the exploita
tion is carried on with a waste of about 75 per cent.
The demand for lumber in the various cities and haciendas
throughout the country is substantial, and prices are extremely high.
Practically the only by-product to the lumber industry in Colombia
is charcoal; large quantities are used. A moderate amount of tan
bark, secured in the neighborhood of Bogota, is supplied to the local
tannery. Most of the slabs and saw waste is utilized for the manu
15
facture of charcoal. The charcoal is made in a primitive fashion

by piling up the wood, covering it with earth, and burning it for sev
eral days. However, one company is investigating the possibilities
of marketing various by-products that could be produced by more
scientific distillation.
Power equipment used consists of hand, ox, horse, and mule
power, steam boilers, electric generators, and gasoline tractors. The
steam power is generally obtained from small traction engines, and
waste wood is used as fuel.
The dry kilns in Barranquilla are modern; others will be installed
in the neighborhood of Bogota. The kilns in Bogota at present are
ancient. There is one being installed near Bogota which is of the
modern type of moist-air kiln manufactured in the United States.
A substantial demand exists in Bogota for processed dry woods.
The present practice is to process the wood before it is dry, but
this gives such bad results that many contractors are forced to
import wood flooring and other wood products.
Logging railways are unknown in Colombia and probably could
not be used, as the country is too mountainous and other methods
are more suitable.
Woodworking machinery, with the exception of that in the mill

in Barranquilla, consists of very small planers and matchers, most
of the woodworking being done by hand by carpenters. Such equip
ment as planing mills, sash and door factories, indoor-finish mills,
etc., are not in operation in Colombia. A company in Barranquilla
and one in Bogota are planning to install the most modern machin
ery. One company in Bogota manufactures flooring and does some
planing. This, however, is a small and old plant. One or two other
smaller concerns have planers and matchers.
Cabinetmakers and machine operators receive from $1.50 to $4
per day. Finishers come under the heading of cabinetmakers in
Colombia. Mechanics receive from $1 to $3 per day, and laborers
from $0.80 to $1.20.
With regard to efficiency and waste, the woodworking machinery
appears to be just as inefficient as the sawmill machinery, although
there is much less waste because the cost of the sawed lumber is
very high.
It is obvious that the present Colombian market for sawmill and
woodworking machinery is small, and it is unlikely that new plants
will be established until the present economic depression is ended.
The outlook is uncertain. Despite the uncertainty, manufacturers
might benefit by establishing agency arrangements in Colombia in
order to take advantage of any improvement in the situation.
[A list of dealers in sawmill and woodworking machinery in Colombia is
available in the Commercial Intelligence Division of the Bureau of Foreign
and Domestic Commerce, Washington, D. C.]
16
PERU
By O. C. Townsend, American Commercial Attaché, Lima
The sawmill industry of Peru is not well developed, owing to the

fact that the commercial forests, located near Iquitos, are too far
from the lumber market and lack adequate transportation facilities.
There are at present two sawmills in Iquitos, working cedar and
mahogany in large quantities. Other small sawmills, all of United
States manufacture, have been bought by independent operators.
They are of the circular type, with carriage feeds and are, in most
cases, driven by agricultural tractors. They are used to turn out
lumber from logs not over 1 meter in diameter and from 6 to 10
meters long.
The circular-saw mills undoubtedly take a very thick cut, with
the result that there is a large kerf. Nothing is done to reduce such
Waste.
Some of the small mills use steam tractors or boilers mounted
on wheels. For fuel they use the waste from the mill.
It is believed that there is no kiln-drying equipment in any part
of Peru.
The only potential market for American sawmill machinery is
the area near Iquitos.
On the other hand, the Peruvian woodworking industry is very
well developed. The wood used most commonly is Douglas fir, im
ported in large quantities from the United States. Some Central
American cedar is used.
There are six or seven general woodworking shops completely
equipped with modern American machinery. They use large resaws
for making boards, usually cutting up timber 12 by 12 inches and
in all lengths. Other common equipment consists of large and
speedy planing, matching, and molding machines, and large band
saws with carriages.
Furniture manufacturing and cabinetmaking is done in plants
entirely distinct from the general woodworking shops. They are
small shops with small machines, almost all of German origin. In
the general woodworking establishments, however, the machinery is
almost entirely American.
All woodworking machinery is up to date. New installations are
always being considered, since the demand for the products of the
plants is constantly increasing. Most of the mills are equipped with
modern filing-room equipment.
Most plants are efficient. High production is obtained, as well as
nigh production per worker. All mills know the use of ripsaws, trim
saws, cut-off saws, swing saws, miter saws, molding machines, shap
ers, planers, joiners, dadoing machines, and glue equipment, but no
modern kiln-drying equipment is used by any of the mills in Peru.
Most of the mills use boilers to obtain their power, consuming mill
waste as fuel. While electric power is available, the price is so high
that it generally does not pay to use it.
Undoubtedly, price is a dominating factor in the purchase of
machinery as far as the small carpenter shops are concerned.
17
URUGUAY
By Spencer B. Greene, Acting Commercial Attaché, Montevideo
The sawmill industry of Uruguay is extremely small, since there

are no forests of commercially valuable woods in the Republic;
consequently, all lumber is imported.
Pine from the United States undoubtedly leads in the imports
into Uruguay. . In 1927, the latest year for which figures are avail
able, imports of pine amounted to 3,984,424 square meters. In addi
tion to pine, the United States furnishes redwood, Douglas fir, and
oak. The sawmill industry also uses quebracho, haya, 13razilian
cedar and pine, Paraguayan vilaro and agaroble, pinotea, curupai.
and Chilean alamo.
One of the largest sawmills of Uruguay has 3 band saws with
carriages to handle logs up to 1 meter in diameter, 3 circular saws,
3 table planers, and various small molding, planing, and grooving
machines. This equipment is comparatively modern, but some of
the other plants have machinery that was installed many years ago
and has not been well cared for. The machinery came largely
from France, Belgium, and Germany, and appeared to be all that
was required for the demands of the Uruguayan industry.
Logs, coming principally from Uruguay, average 1 meter in
diameter and about 3 meters in length. They are brought down on
river steamers or by rail and conveyed to the mills on motor trucks.
Hand cranes are used to lift the logs to the stacks, and the handling
from the stacks to the carriages is on small hand cars running on
narrow-gauge tracks.
There seems to be little interest in the matter of kerf. As to
wood utilization, in the plant described the short pieces are sawn
into pickets or cut up into wooden soles for shoes, but in most
Uruguayan plants they are burned under the boilers which furnish
the power for the plants. Electric motors are used in some of the
mills.
Kiln drying is not practiced. The wood is piled in sheds, after
being cut, for air seasoning.
The woodworking industry of the country is very little developed.
[A list of the principal sawmills, carpenter shops, and ſurniture factories
in Montevideo is availalble in the ("ommercial Intelligence I )ivision of the
Bureau of Foreign and Domestic ('ommerce, Washington, I). C.
VENEZUELA
By O. R. Strackbein, Assistant Trade Commissioner, Caracas
SAWMILL INDUSTRY
The sawmill industry of Venezuela is small and in a comparatively

low stage of development. Most of the equipment of the mills is
old and of simple design. A modern mill, however, was recently
opened at Maracaibo. American machinery predominates, but Euro
pean machinery is also in evidence. Each mill generally has both
Circular and band saws, the one type for cutting hardwoods and the
other for softwoods.
18
Both imported lumber and local logs are consumed in the mills,
the greater part consisting of the latter. In the imported stock,
pitch pine, Douglas fir, and redwood predominate, while among the
}. woods cedar, mahogany, apamate, jabillo, balsamo, pardillo,
mijao, angelino, vera, ceraipo, araguanay, puy, canalete, carrito, mora,
guayabo, cartan, canada, and zaqui-zaqui are consumed. The cedar
is used for doors, windows, and furniture, while mahogany is also
used for the latter purpose. Apamate is employed in ordinary work
and doors, while jabillo and mijao are used in box making. For
construction purposes vera, puy, angelino, araguanay, ceraipo, cana
lete, etc., are used. The entire product of the Venezuelan mills is
absorbed by the domestic market.
In Caracas are located six mills which, it is estimated, saw from
500 to 600 cubic meters of lumber per month. The largest mill
employs about 40 men, including the office and sales force. The
remainder provide work for 15 to 25 men each.
In Maracaibo 5 or 6 mills are located, 2 or 3 in Valencia, 2 in
Puerto Cabello, 1 in La Guaira, 1 in Maracay, 1 in Carupano, and
1 in Ciudad Bolivar.
The logs are handled largely by human labor. Generally a small
trolley runs into the mill for moving the logs near the machines,
where they are unloaded by hand and stacked. This makes them
available to the men operating the saws, who take a log at a time,
fasten it to the carriage, which moves on rails, and then, by putting
on the power, move the log against the saw. This method is used
for squaring the logs and for cutting long boards. Practically no
loading or unloading devices exist, but labor cost is so low and the
output so small that the installation of labor-saving devices would
be a doubtful economy.
The mill owners, on the whole, feel that under present conditions
of the market their equipment is adequate, but they probably do not
realize that improvement of manufacture and reduction of cost
might improve their market. A sales agent competent to show by
practical calculation how costs might be reduced by the installation
of modern equipment, it is believed, would be able to sell machinery.
American machinery, however, is almost unanimously held to be
too high in price, and German, Belgian, Swedish, and English ma
chinery is being favored considerably. --
The mills are not operated on a close enough margin nor on such
a scientific basis as to direct attention to the kerf. Waste wood
in some instances is sold as firewood, while sawdust is also sold
at times as floor-sweeping material, but in one mill both these prod
ucts are used for conversion into gas which is used as power to
drive the machinery. In the few mills which use steam as power
the waste wood and sawdust are used as fuel. Aside from use as
fuel, no wood utilization is practiced.
In Caracas most of the mills are equipped for use of electricity,
which is obtained from the local power companies. One mill, as
stated above, manufactures its own gas, while yet another fires a
boiler for steam power.
The logs come from the forests and mountains, dragged by oxen,
usually to the nearest stream for ſloating to the sea. At the coast
19
they are loaded on coasting vessels and sent to ports such as La

Guaira, Puerto Cabello, etc. Those logs which are not consumed
in the seaports are sent to Caracas or other places by railway or,
in some instances, by truck over the highways.
Logging is primitive, only axes being used in felling the timber
and squaring the logs. Large-scale operation is out of the question
because of the small demand and the scattered growth of the varied
species. The growths are mixed, and no areas are found in which
only one kind of tree abounds. It is customary to kill the trees
by girdling them at the bottom and leaving them from 4 to 6 months
to dry before felling them. This practice decreases the weight of
the logs transported and avoids the necessity of drying after reach
ing the mills. The latter, generally, are located not for proximity
to the forests but for nearness to the market.
The mills do not saw for stock, with the exception sometimes
of imported lumber such as pitch pine, but work according to the
specifications laid down in orders. Sales are made to carpenter
or woodworking shops and to builders. In Maracaibo the oil com
panies undertook in the beginning to purchase their lumber needs
from the local mills, but they were generally unable to fulfill the
contracts in the specified time, with the consequence that the buyers
came more and more to import their needs. It is sometimes charged,
also, that the local mills added too wide a margin of profit to com
pete successfully with outside sources, especially since the petroleum
companies obtain free entry for lumber.
The general woodworking industry consists of carpenter shops

and furniture factories, none of which are large or modern. One
of the leading furniture factories in Caracas is equipped with saws
and planers 30 and 35 years old, with 1 or 2 newer machines, the
total number of machines not exceeding 6 or 7. The shops are
predominantly equipped with German and Belgian machinery, al
though American machinery is also in evidence. A larger plant was
built comparatively recently, which failed, it is alleged, because
of overequipment for the market. The machinery was nearly all
German and Belgian.
It is ordinarily found that the woodworking shops, like the saw
mills, have a mixture of American and European machinery. Pur
chase of new equipment is usually piecemeal, with a bad effect upon
orderly and systematic organization.
The lumber used is that most usually cut by the sawmills—native
mahogany, cedar, apamate, etc.
The machinery is, often electrically driven, but handwork is de
ended on for all else. I laborers receive about 6 bolivars (about
1.20 per day; machine operators, 8, 10, or 12 bolivars, depending
upon their skill; while cabinetmakers are paid 12 to 16 bolivars, or
$2.40 to $3.20.
The work is generally slow. In woodworking plants, as in the
sawmills, much depends upon proper installation and operation of
machinery. The best machinery loses greatly in efficiency if it is
20
poorly installed and improperly cared for. In the sawmills great

difficulty is experienced in obtaining expert filers and keeping them,
especially if they are Americans. A continuous process of education
is required; and business is obtainable by firms which show the most
intelligent cooperation with the mills and shops, by indicating proper
operation of machinery and pointing out economies and advantages
of modern machinery.
[A list of the sawmills, distributors of sawmill machinery, and carpenter
and furniture shops in Venezuela is available in the Commercial Intelligence
Division of the Bureau of Foreign and Domestic Commerce, Washington, D. C.]
O
''. ... BUREAU of FOREIGN AND DOMESTIC COMMERCE

William L. Cooper, Director
REGEIVED
APR 19 1930
O. S. U. LIBRARY
TAMERICAN UNDERWRITING
OF FOREIGN SECURITIES
IN 1929
HF
É
205
Sb6 UNITED STATES
WASHINGTON : 1930
For sale by the Superintendent of Documents, Washington, D. C. - - - - Price 10 cents

FOREWORD
The par value of foreign securities publicly offered in the United

States during 1929 amounted to about $706,000,000, or less than half
the 1928 total. Canada increased its total borrowings substantially;
so the entire decline was in Europe, Latin America, and the Far East. /
Germany, which was the heaviest borrower in 1928, was fifth in 1929,
with a total only one-tenth as large.
This decline in total foreign financing in the United States, while
the result of many influences, is ascribed primarily to the speculation
in stocks in the New York market. That speculation so raised money
rates and so depressed the bond market that the flotation of foreign
government bonds was less than one-fourth the previous year's total.
Refunding issues all but disappeared. Since foreign corporations for
the most part are reluctant to sell their stocks on a foreign market,
and since they could find few purchasers here for their bonds, foreign
corporate flotations likewise were limited.
The present bulletin was compiled by Paul D. Dickens, of the
finance and investment division, under the direction of Ray Hall,
acting chief. That division welcomes inquiries on any phase of
foreign investments.
WILLIAM L. Coop ER, Director.
APRIL, 1930. -
(II)
AMERICAN UNDERWRITING OF FOREIGN SECURI
TIES IN 1929
INTRODUCTION
The finance and investment division counts as “foreign capital

securities publicly offered” all new issues, floated here, of the stocks,
bonds, and long-term notes of (1) foreign governmental units and
foreign corporations and (2) of concerns which, though incorporated
in the United States, invest wholly or heavily abroad. When an
American corporation of this second class increases its capital by
issuing subscription rights to its stockholders, the new issue is counted
a public offering. Such an issue differs from the others only in that
there is no deduction for underwriters' commission. Likewise, stock
issues to stockholders by foreign corporations are included if a reason
ably accurate cstimate can be made of the shares taken by stock
holders in the United States.
Private compilers of new foreign capital issues sometimes count
all of an issue when a portion of it is known to have been under
written abroad, thus creating important Ciſſerences between their
figures and those used in this bulletin, particularly in the case of
Canadian issues. Furthermore, they sometimes include private
credits. Their total par values are likely to deviate less from the
totals herein than their “net nominal values,” as no private compiler
attempts to differentiate between “reſunding” and “refunding to
Americans.”
SCOPE AND METHOD OF PRESENT STUDY
The finance division compiles current information upon the individ

ual issues directly from the numerous primary sources, and publishes
its tentative compilations quarterly in Commerce Reports. Later
these tentative compilations are compared, item by item, with the
lists of the several private compilers; and each discrepancy is recon
ciled by inquiries addressed to the underwriters or issuers.
The allocation of issues to the borrowing country, as listed in the
tables throughout this bulletin, is in certain cases arbitrary. The
attempt has been made, however, to allocate the proceeds of issues
to the countries in which they will ultimately be expended. To
illustrate: The Lautaro Nitrate Co. is an English corporation owning
properties in Chile; accordingly, the amount of this issue which was
purchased in the United States has been entered under Chile. Like
wise, the issues of several American companies operating in more than
one foreign country have been divided according to the best informa
tion available as to the country in which the expenditure was made;
where division by countries was not possible, they were listed as
“international.”
Some types of transactions have been omitted from the bulletin
because of the impracticability of obtaining adequate information
(1)
regarding them. These are (a) the purchase and sale of foreign
securities in small lots by United States investors, either privately
or through dealings on the stock exchanges; (b) the stocks of foreign
corporations which are quoted and traded in on the New York Curb
Exchange to make a market for them in this country; and (c) pur
chases of stocks by the holder of foreign corporate bonds which carry
Warrants.
EXPLANATION OF TERMS USED
A few of the terms used need explanation. “Nominal capital”

refers to the par value of the securities actually sold in the United
States. A $1,000 bond or a preferred share of $100 par value sold
at 90 would be listed at its full face value, $1,000 or $100 as the case
may be. Common stocks and units of common and preferred stock
are listed at the selling price. “Estimated refunding to Americans”
refers to the redemption of bonds or notes held by investors in the
United States which had previously been sold publicly or privately
in this country; it does not cover the repayment of short-term bank
obligations. “Estimated net nominal capital” is the nominal (face)
value less the estimated refunding. To determine the new capital
obtained by foreign countries through securities publicly offered in
America during the year adjustments must be made for the discounts
or premiums at which the securities were sold, for the commissions of
the American underwriters, and for the “lag” in remitting the pro
ceeds to the issuers.
The schedule of security issues appended to this bulletin as Table 9
and the major tables inserted in the text contain two classifications—
(a) governmental, provincial, and municipal issues, including “cor
porate issues officially guaranteed or controlled,” and (b) corporate
issues. When “government issues” are mentioned in the text, how
ever, only those issues which are the direct obligations of national,
provincial, or municipal administrations are included. Except where
specifically noted otherwise, the classification “corporate issues”
embraces only issues of purely private character.
These figures of public offerings must not be confused with America's
net export of long-term capital—nor with America's net export of
capital, which must measure also this country's international move
ment of short-term capital. The net outflow of capital from the
United States is estimated in the bulletin entitled “Balance of Inter
national Payments of the United States,” compiled annually by the
Finance and Investment Division. That bulletin (the next issue of
which will appear in May or June) includes computations or estimates
of a dozen long-term and an even larger number of short-term capital
movements. The principal long-term items omitted from this present
study pertain to “direct” investments, bond-redemption and sinking
fund operations, and the international exchange and arbitrage of
securities.
FOREIGN SECURITIES PUBLICLY OFFERED IN UNITED STATES
The par value of foreign securities publicly offered in the United

States during 1929 was $706,000,000. This was the lowest annual
total of American foreign financing since 1923. During 1929 refund
ing to Americans was estimated at $35,000,000, or less than in any
year since the close of the World War, leaving a balance of about
$671,000,000 net (new) nominal capital. The discount at which
3
these foreign securities were sold aggregated $12,500,000, while the

premiums aggregated $1,500,000. This leaves $11,000,000 to be
deducted from the net nominal capital, to arrive at an approximation
of the sums invested by Americans during the year in this class of
foreign securities.
The following table compares foreign capital issues in the United
States by years from 1914 to 1929:
TABLE 1.--ToTAL For EIGN SECURITIEs (Gov ERNMENTAL 1 AND Corport ATE)
PUBLICLY OFFERED IN THE UNITED STATES, 1914. 1929
Num- avy, i r , . Estimated Estimated

Period ber of Nº. refunding to net nominal
issues 1111: .A.I.ler: “ains Capital
14) - ----- - $37, 72

- - - - - - - - S7 - $19,500,000 813, Jºſ,
------------ - - - - - - - - - - - - - - - 104 1, 131,030, 26 | 7,750,000 1, 123,330, 261
------------. - - - - - - - - - - 64 718, 147, 450 32,000, 000 6-3, 117, 150
30 29, 715, 000 1, 500,000 28, 115,000
250, :120, 300
1:1, 000,000
! 1, 105,083
| 1 |ſi, 121, 300
82, ()()(), ()00
201,047, 945
244, 540,000
183, 895, 200
•) tº
February
March
2 io, 50,000
45 201, 170, 147 550,000 193,620, 147
July-------------------------------------------- | 7 T41,70s, 000 0s. 000
25, 250,000 , 250,000
October------------------------------------------
November ---
December
1Includes central Government, provincial, and municipal issues and officially guaranteed or controlled
corporate issues.
The flotations by months necessarily were small in volume. March

was exceptional, however, due to a $100,000,000 issue of preferred
stock by an American corporation whose operations are confined to
foreign countries, and June likewise far exceeded all but the March
total, due chiefly to two large Canadian railway issues.
CONDITIONS AFFECTING WOLUME OF FOREIGN FINANCING
The volume of foreign financing in the United States, especially in

the form of publicly-offered securities, is sensitive to political and
economic conditions abroad as well as to financial conditions in this
country. In Europe, which borrowed so heavily in 1928, political
4
conditions in 1929 were generally such as to restrict foreign borrowing.

The negotiations for the revision of the Dawes Plan, and the resulting
uncertainty, continued throughout the year, for although the experts
who met at Paris agreed on the technical aspects of the problem in
June, the political representatives of the governments concerned failed
of complete agreement until in January, 1930. This circumstance
prevented any important volume of issues not only by Germany but
also by Austria and Hungary, since the reparations obligations of the
latter were tied up with the German reparations problem. Foreign
borrowing by certain other European countries was discouraged by
their internal political situation.
Economic conditions in Latin America were partly responsible for
the serious decline in Latin American governmental issues. The
export of corn and the production of wheat by Argentina, two of the
most important items in the national economy of that country, de
clined seriously during 1929. Low coffee and sugar prices during 1929
seriously affected business in Brazil and Cuba, and to some extent in
Colombia and the Central American Republics. Argentina, Brazil,
and Colombia had been among the heaviest borrowers in 1928.
The appearance of unfavorable fiscal situations furnished additional
deterrents to new Latin American governmental issues. As these
fiscal developments became more widely known the prices of Latin
American securities already outstanding in the United States receded,
thus diminishing the probabilities for success of new flotations here.
THE AMERICAN MONEY MARKET
Money-market conditions in the United States during 1929 were

such as to prevent a large volume of new foreign financing. During
the first nine months interest rates were continuously at unusually
high levels, which discouraged borrowers seeking new capital through
bond offerings. Then, the unsettling effects of the stock-market
collapse in October, the severest in history, discouraged new issues
during the fourth quarter.
Part of the slowing up of the bond market may be traced to the
policy of the Federal Reserve Board designed to restrict security
speculation. In the first six months of 1928 the reserve banks
reduced their holdings of United States Government securities by
$230,000,000. Their holdings were still further reduced by $70,000,
000 in the 15 months preceding the stock-market break. The board's
chief influence, however, was its opposition to the rediscounting of
loans on securities for the member banks and in raising the rediscount
rate from 4% per cent on June 30, 1928, to 6 per cent on September 30,
1929. The member banks were thereby caused to reduce their own
holdings of United States Government and other securities by over
one billion dollars. The current quotations of bonds naturally fell
under the influence of such wholesale liquidation.
STOCK SPECULATION A CONTRIBUTING FACTOR
The continuously high levels of interest rates have attracted endless

comment and discussion. The nation-wide speculation in stocks has
been the principal explanation assigned to them, but another influence
was the extraordinary volume of domestic capital issues. In this
connection, the indexes of American financial conditions and of the
5
flotation of new capital securities (both domestic and foreign) in

American markets, in Tables 2 and 3 below, are illuminating.
Table 2 shows that brokers’ loans throughout the first three quarters
of 1929 were approximately 100 per cent greater than in 1926 and 1927.
Their trend had been slightly upward since the second quarter of 1926,
but the pace was accelerated in the fourth quarter of 1928 and the
first and third quarters of 1929. The number of shares of all kinds
traded in during January–September of 1929 was 59 per cent more
than for the whole of 1927, and the level of stock quotations was 67
per cent above the 1927 level. The combination of increased turn
over of stocks and the 67 per cent increase in price level, even though
urchases were made on higher marginal requirements, necessitated
arger brokers’ loans. The greater volume of brokers’ loans, reflecting
the greater demand for money to finance stock purchases, helped raise
the call-loan rate to about double that ruling in 1926 and 1927.
Prime bankers' 90-day acceptances, while not showing the same
increase, rose sympathetically from around 3%–3% to 5%–5% per cent.
TABLE 2.-Soxſ E QUARTERLY INDEXEs of AMERICAN FINANCIAL CoNDITIONs,
1926–1929
| Standard statistics Transactions on the Money rates in

Security index New York Exchange New York,
BrokerS' numbers 2 (000 omitted) & per cent “
Period - dºo y
| - - - -
.
---- - - -- - - | - - -- -
omitted)'ſ stock
..º.º.
| Bond -: t
Bonds Stocks.of. . .....
"..., number Call 90 days
prices yields face value shares . money
1926: .
First quarter--------------- | $3,015 99.8 4.64 $815, 755 129, 282 || 4.58 33s
Second quarter------------- | 2,479 94.4 4.50 813, 447 º 40. 31.4
Third quarter-------------- 2,703 102.4 4.60 570,588 117, 115 4.93 33%
Fourth quarter------------- 2, 670 103.4 4. 57 787,343 110, 645 4.82 37.8
Year------------- w ----- -- ---------- 100.0 4.60 2,987, 133 450,845 --------|-------
1927: i - |
First quarter--------------- | 2,776 107.5 4. 53 | 971, 423 129,786 4.15 35;
Second quarter- ----------- |
Third quarter -------------- |
2,971
3 ||
113. 6
122.3
4.48
4.48
829, 552
680,812
|
143, 347
}} | {
4.25
};
338
3}.4
Fourth quarter------------- | 3,485 129.8 4.42 787, 250 103, 210 ! 3.07. 314
Year--------------------- |- 118.3 4.47 3,269,037 | 510,357 -...--------
1928: | - -- |
First quarter--------------- 3,782 134.9 | 4.38 833,991 176,415 || 4.32 3!2
Second quarter------------- 4, 279 147.8 4.43 | 1,094, 903 228, 666 5.65 4
Third quarter-------------- 4,296 | 143.7 4.57 564, 554 i 182, 84:
Fourth quarter ------------ 4,999 167.2 £57 405,085
Year---------------------|---------- | 140.9 4.49 2,903,434
1929: . | ; -
First quarter--- 5,547 186.6 4.65 525,913 201,436 s.07 5!?,

Second quarter- 5,450 188. 3 4. 70 667, 860 241,436 8.69 ; 5: 2
Third quarter-- --: 6, 150 216.8 4. 74 766,004 §§§ {ij :; 5, 8
Fourth quarter------------- * 4,637 | 172.7 4.00 1,712,578 303, 402 5.46 | 4%
Year | 191. 1
4. w 3,773, sº 1, 124,993 -------- --------
1 Federal Reserve Bulletin, January, 1930, p. 13. The quarterly figures are the averages of the monthly
ata.
* These stock prices are the weighted average of Thursday's closing prices of 410 industrial, rail, and
public-utility stocks; year 1926 taken as 100.
* Taken from the Commercial and Financial Chronicle of the week closest to the end of the quarter.
* Federal Reserve Bulletins. The rates used here are the stock exchange new call-Inoney rate and prime
bankers' 90-day acceptances.
* October, $6,498,000; November, $4,023,000; and December, $3,391,000.
6 -
CAPITAL ISSUES IN UNITED STATES
As seen in Table 3, despite the decided slump in the volume of new

capital flotations after the stock-market crashes of October and No
vember total (domestic and foreign) capital issues in the United States
were 1.6 billion dollars more than in either 1927 or 1928 and about
4.2 billions more than in 1926. Domestic capital issues, moreover, were
2.4 billion dollars greater than in 1928, 2.6 billions greater than in
1927, and 4.8 billions greater than in 1926. Finally, due to the strong
preference of investors for common stocks before the stock-market
collapse (rather than for fixed-income securities), the proportion of
bond issues to total security issues declined from 82.3 and 82.2 per
cent, respectively, in 1926 and 1927 to 63.7 per cent in 1928 and 40.3
per cent in 1929.
The offerings of new securities, therefore, were notably greater in
1929 than in any recent year. Obviously, this enlarged demand for
capital strongly influenced interest rates. Since the increase was
dominated by stock rather than by bond issues, however, the influence
was indirect rather than direct. Many of the new stock issues found
their way into margin accounts of traders and of speculators and so
increased the demand for brokers’ loans. Others probably were
carried by investors, along with older issues, by means of direct loans
from banks. Lastly, large blocks may have remained in the hands of
underwriters and may have been used by the underwriters as collateral
to obtain working capital. In any case, the sharp increase in brokers'
loans or loans on securities during the first three quarters of 1929
resulted from new stock offerings as well as from speculation in older
issues at high prices.
F() REIGN FI, OTATIONS I) IMINISH AS ST()CK ISSU'ES INCIn EASE
High money rates did not prevent a rapid growth of total flotation”
(domestic and foreign) during the first nine months of 1929. They did.'
on the other hand, affect total bond offerings, which for the year weri
1.7 billion dollars less than in 1928 and 3.5 billions less than in 1927%
Since, as previously pointed out, foreign issues are primarily bond.
issues, their decline likewise was marked. Foreign governmental units'
were natually reluctant to incur the charges imposed in 1929 by high!
American interest rates—even though other conditions may have been
favorable to the success of their issues, which in many cases they Wººl
not. Similarly, foreign corporations whose issues in past years have
been principally bonds stayed out of the American market rather
than borrow by means of bonds carrying either a high interest return
|
or a nominal interest rate but salable only at a material discount.
It might have been expected that foreign corporations would have
taken advantage of the favorable stock-flotation conditions and dis
posed heavily of their equity securities here; this was prevented by
the reluctance of foreign managements to see corporate control pass
to another country and by the traditional unwillingness of American
investors to purchase stocks of foreign corporations.
Foreigners did not even turn to the American market for refunding
issues, which were, as stated earlier, less than in any other year since
the close of the World War. Such issues ordinarily are floated as
emergency measures when maturing indebtedness can not be met or
for the conversion of existing indebtedness to better terms; cases of
the former were apparently few, and conditions were not such as to
7
permit the latter. Possibly foreign refunding under the more favor
able bond-market conditions of 1926, 1927, and 1928 had so antici
pated requirements that 1929 could pass by with a minimum of such
transactions.
TABLE 3.−ToTAL NoMINAL VALUE OF ("APITAL Issu Es () FFERED IN THE UNITED
STATEs, BY QUARTERs, 1926 – 1929
[000 omitted]
Period Ronds Stocks

Per cent
stocks I) Ornestic
issues Foreign
issues | Per cent
foreign
I
1926: |
$1,510, 318 : 3 23.7 $1,767, 160 $252, 362 12. J.
- -- - 1, 680, 200 343, 801 . 16.9
1, 182,978 294,290 10. 9
1,472,373 42s, 102 22.5
6, 111,720 1, 318, 555
1927:
First quarter------------------ 2,049,978 19. 6 2, 174,860 377, 388 14.8
Second quarter-- - 2, 405, 341 13.8 2, 373, 186 416, 889 | 1.9
Third quarter--- - 1,385, 158 19.7 1, 786 266, 612 lº. 4
Fourth quarter--------- 2, 319,954 19.0 2 291 1S. 5
Year------------------------ 8, 160,431 17. S 8, 341, 123 16.0:
1928: – - - -- ----- - -
First quarter-- 2,082, 181 , 403, 751 : 15.4

Second quarter 2,071, 402 - 615, 184 20. tº
Third quarter- 804,001 . 1, 104, 323 154, 829 12.3
Fourth quarter 1,407,096 2,704, 957 284,098 9. ,
Year------------------------ 6, 364, 680 6, 3 S, 503, 984 1, 487, 862 , 14.9
1929: —- t ----------- - -- -
First quarter------------------ 1, 302, 149 1, 826, 574 8.7

Second quarter - 1,461, 623 1,660, 560 6.5
Third quarter--- - 870, 0.53 2.571, 981 2.3
Fourth quarter---------------- 1,038,941 872, 204 7.7
Year------------------------ 4, 672, 766 6, 931, 409 59.7 10, 898, 407 . 705, 768 6. I
-
|
Sources: Commercial and Financial Chronicle. The bond issues are both governinental and corporate.
The foreign issues are as given in this bulletin and have been subtracted from the total issues in the United
States to arrive at the domestic issues.
FOREIGN OFFERINGS IN GREAT BRITAIN AN i) NETHERLANDS
Conditions in the United States in 1929 were reflected in two other

capital-lending countries, Great Britain and the Netherlands. In
terest rates there, as well as in practically every other country, rose
substantially during 1929–mainly, perhaps, because of reduced capi
tal exports from the United States, but also because of foreign par
ticipation in American speculation by actual purchase of securities
here and by the loan of funds to American speculators.
In contrast to the American frenzy for new domestic issues, there
was a decline in both Great Britain and the Netherlands. In the
former, total issues (domestic and foreign) fell from $1,828,475,000
in 1928 to $1,247,556,000 in 1929. As will be noted in Table 4 below,
the decline in foreign issues, while heavy, was not proportionate to
: the decline in the United States.
Capital issues (domestic and foreign) in the Netherlands in 1929
amounted to $188,000,000, compared to $269,000,000 in 1928. The
i heaviest decline was in foreign issues and was probably caused by the
: decline in German issues, which ordinarily constitute a very impor
tant part of Netherlands' foreign lending.
103230—30—2
8
TABLE 4.—NET NoMINAL of For EIGN CAPITAL ()FFERINGS IN THREE LEADING

XOUNTRIES, 1926–1929 -
[000 omitted]
Year United states Great Britainſ Netherlands

- ---------- - - ——1– --- - -
192" --------- ------------------------- . ... ----------, $1,134,660 $593, 150 $113, 200
1927 … --------------------------- - -----, 1,375,713 743, 500 136,000
1928 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- 1, 250, 951 767, 300 123,000
1929 -- - ----- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 671,231 541, 470 54,620
Sources: The figures for Great Britain were obtained from the Statist (London) of Jan. 4, 1930, p. 16,
and those for the Netherlands from the Economist (London) of Jan. 25, 1930, p. 174. Conversions were
male at the average yearly rates given in the Federal Reserve Bullet in of January, 1930.
The Unitel Sta;es figures are those of the last column of Table 1.
GEOGRAPHIC DISTRIBUTION OF FOREIGN OFFERINGS
The contrast between 1929 and 1928 is brought out quite clearly
by the fact that Canada obtained 43 per cent of all the capital sub
scribed in the United States for publicly offered foreign securities in
1929, whereas approximately the same per cent of the total was
obtained by Europe in 1928. Latin America ranked second in the
volume of its flotations here, as it did in 1928, although the sum
involved was only about two-fifths that of 1928; Europe received
less than one-fourth the capital in 1929 that it did the previous
Veal'.
A further contrast exists in the relative importance of the two
main classes of borrowers. Corporate issues comprised 62 per cent
of the foreign flotations here in 1929, usurping the position held by
governments in 1928; but nearly half of these issues were by Ameri
can corporations for their foreign activities.
The following table summarizes foreign issues publicly offered in
the United States in 1929 and during the period 1914–1929, by class
of security and by geographic grand division:
TABLE 5.-- TOTAL PUBLICLY OFFERED For EIGN SECURITIEs (Gover NMENTAL
AND Corporate) PURCH ASED IN THE UNITED STATEs, BY CLASSEs, 1929 AND
1914– 1929 -
- ------—
- -
––T.
- - - Number | Total nominal
- TEsmated TJ.T
-Net nominal
-
Class of security and geographic grand division |! of

\".issues
* r \i
capital , refunding
Americans
to capital
- - - - - --- l i
1929 | | |
Government and (Hovernment-guaranteed | |
issues: 1 | - .
Europe--- - - - 7 $30,470, 500 $4,000,000 $26, 470, 500

Canada - - 29 | 159,710,600 18,486,875 141, 223,725
Latin America - - - - - - - - - - - - - - - 9 67,048,000 1,500,000 65, 548,000
I’nited States Territories and possessions- 6 : 5,090,000 ||---------------- 5,090,000
Total. ------------------------------ | 51 | 262,319, 100 23,986, 875 238,332,225
Corporate issues: == -
Curope... ----- 26 i 115,501,681 ---------------- 115, 501,681

Canada ----- . 49 i 149,019, 700 550,000 148, 469,700
Latin America 15 109,402, 200 |- - - - ------------ 109,402, 200
Far East - - - - - - - 2 : 61,450,000 10,000,000 51,450,000
United States Te - 5 8,075,000 |---------------- 8.075,000
Total.--------------------------------- 97 443,448, 581 10, 550,000 432,898, 581
Total issues: -- - -
Europe-- 33 145,972, 181 4,000,000 141,972, 181

Canada. . . 78 308,730,300 19,036,875 289,693,425
Iatin AIIle 24 176, 450, 200 1,500,000 174, 950, 200
Far East-------- 2 61,450,000 10,000,000 51, 450,000
United States Te 11 13, 165,000 ---------------- 13, 165,000
Total, 1929----------------------------- t 148 705,767,681 34,536,875 71,230,806
1Includes central government, provincial, and municipal issues and corporateissues officially guaranteed
or controlled.
TABLE 5.—TOTAL PUBLICLY OFFERED FOREIGN SECURITIES (GovK. RNMENTAL
AND CoRPoRATE) PURCHASED IN THE UNITED STATEs, BY CLASSEs, 1929 AND
1914–1929–Continued
is-ision' Number | Total nominal ! ºf...i.

- Estimated
- - -
Net nominal -
-11 ri ir.
Class of security and geographic grand division of issues capital º capital
1914–1929 I
|
Government and Government-guaranteed
issues: 1 -
Europe-------------------- ------------. - 250 | $4,971, 809, 450 $487, 840, 145

Canada------------------------------- - 495 1,995, 987,020 497, S()1, 875
Latin America 200 1,964, 750 34-6, 750, 413
Far East.---------------------- . ------- 2S 640,397,000 71,988, 500
United States Territories and possessions 7() 101, 250,000 .. . . ......
Total.---------------------------------- 1.043 9,674, 117,220
Corporate issues: i
ºllrole--------------- -- --- - - - --- - - - -- 237 1, 478, 341, 256 107,000, 000 1, 371. ::41, 256
Canada.----------------. - - --- - - -- - - 412 1.261, 351, ()95 59.5, 000 1, 109, 7, 8,095
Latin America.--------- - - - - - - - ----- 177 1, ()76, 10 883, 883 -
Far East -- . . 272, 311, 680

tºnited States Territories and possessions.
Total-- - - -------------------------
Total issues:
.70s, 680 iſ).5, 9XS, 500

x -
111 192,058.310
-- --
19, 9.2, U()()
- -
172, () 6, 34()
------- - -
Total, 1914-1929. . . . - - 1, 928 012 so 1, 942, 809, 816 11, 91ſ 3, ()7 |
1 Includes central government, provincia!, and municipal issues and corporate issues oſlicially guarant cell
or controlled.
NoTE.—A detailed list of the 1920 offerings appears in Table 10 at the end of this bullet in.
CANADIAN BORROWING HEAVIEST
In a year when the volume of borrowing by the other areas (except

the noncontiguous American Territories and possessions) was about
half as large, Canada increased its total susbtantially to $309,000,000,
from $237,000,000 in 1928. Government and government-guaranteed
corporate issues comprised over half of the total in 1929, while in 192S
they were only one-third of the total. The Canadian National Rail
way Co., which is controlled by the Dominion of Canada, more than
doubled its issues in 1929 and took $74,000,000, or approximately 46
per cent, of the government and government-guaranteed total. This
capital was to be used principally for additions, betterments, and the
acquisition of new lines. Nevertheless, purely governmental ſlota
tions were more than double the 1928 total; they consisted of 6 pro
vincial and 10 municipal issues for totals of $56,000,000 and
$30,000,000, respectively.
Canadian corporate borrowing decreased slightly in 1929. (); the
total, public-utility and hydroelectric companies obtained $53,000,000,
railways $49,500,000, and paper and pulp companies $34,000,000.
The balance, about 10 per cent of the total, included numerous small
issues of a wide variety of industries. Over one-third of the corporate
issues were by corporations owned in the United States.
LATIN AMERICAN GOVERNMENT ISSUES I).ECLINE
Latin American issues in 1929 were only 40 per cent of the 192S
totals. The government and government-guaranteed corporate total
was a little over one-fourth that of the previous year. This sudden
-
10
decrease followed four years of steady increase in the public offering

of Latin American governmental securities in the United States. It
was partially accounted for by the unfavorable condition of the money
market, but in the main it was the result of adverse economic and
fiscal conditions, as previously explained.
There were only 7 government issues in 1929 compared with 32 in
1928; and the total was $46,500,000, compared with $320,000,000.
The two government-guaranteed corporate issues were by the Mort
gage Bank of Chile, $20,000,000, and the Banco Nacional de Panama,
$500,000.
Latin American corporate flotations totaled $100,500,000, repre
senting a 20 per cent increase over 1928. About $60,000,000 of this
was for public utilities. As in other years, Latin American corporate
borrowing was largely composed of issues by American corporations
for use in Latin America. Two corporate loans were listed as “Latin
America—-International” because the destination of the proceeds
could not be given with any degree of accuracy; these were the pre
ferred-stock issue of the American & Foreign Power Co. (Inc.) and
the common-stock issue of the North-South American Corporation.
("H II, E. I.I.A. I.) IN TOT.A I, I I.() T.A Ti () N.S HICHE
Chile was first in both government and corporate issues. The

Republic sold $8,400,000 of its 33-year 6's in the United States in
March, to be used for the construction of public works. The total
of this issue was $10,000,000, $1,000,000 being offered in Netherlands
and $600,000 in Sweden. In addition, £2,000,000 was offered in
London for the same purpose. The Chilean consolidated municipal
loan of $14,000,000 ($1,000,000 additional being sold in Netherlands)
was a new departure in Latin American financing, although such
joint issues were common by European municipalities. This loan
was participated in by 65 municipalities and was to be used for pub
lic improvements and for the funding and consolidation of outstand
ing obligations. It “was arranged through the Ministries of the
Interior and Finance of Chile and approved by the Chilean National
Government.” The only corporate issue was by the Lautaro Nitrate
Co. (Ltd.), $28,000,000 being taken in the United States and $4,000,
000 in Europe. This company is incorporated in England for the
production of nitrate in Chile. The proceeds were to be used largely
to construct and equip a new plant for the extraction of nitrate under
the Guggenheim process.
Argentina, Brazil, and Colombia were considerably below previous
years in their total borrowings. Several other Latin American coun
tries offered no loans to the public at all. One $10,000,000 issue of
public-works serial certificates was oſtered by the Republic of Cuba
in furtherance of the construction of the Central Highway. Details
of other Latin American issues appear in the schedule of issues,
Table 9.
EUROPEAN GOVERNMENT ISSUES ONE-TENTH OF 1928
There were only three European countries that floated govern

ment and government-guaranteed corporate issues in the United
States in 1929; their aggregate—$30,500,000—was less than one
tenth the total in 1928. Corporate issues at $115,500,000 were,
11 -
roughly, $135,000,000 less than in 1928. The greatest decline was in

German loans, which, at $31,500,000, were $260,000,000 less than in
1928. German issues were confined to three months, January and
February, before the experts on reparations met at Paris, and Octo
ber. Of the German issues, only about $7,000,000 was by govern
ments and $14,000,000 by government-guaranteed or controlled cor
porations—the latter sum entirely for public utilities. Corporate
issues were relatively unimportant.
A Government issue of importance was that by Rumania under the
title, of “Kingdom of Rumania Monopolies Institute, Stabilization
and Development Loan of 1929.” According to the printed pro
spectus of the issue, the Monopolies Institute acquired under an exclu
sive concession all the monopolies now operated by the Kingdom, in
cluding the tobacco, salt, and match concessions. The loan was to
be offered in 11 foreign countries to a total amount of about $101,–
000,000, of which $5,500,000 was purchased in the United States.
Its purpose was fourfold—(a) the creation of working funds for and
the discharge of floating debt of the State Treasury and the State
railways, (b) strengthening the position of the National Bank,
(c) improvement of the State railways, and (d) other productive
public works.
European corporate issues were of comparatively small size with
the exception of those of Sweden. Over $61,000,000 was obtained
by Kreuger & Toll Co. from three issues. The proceeds from the
sale of debentures in March were to be used for furthering the opera
tions of the Swedish Match Co. by purchasing from it and the Inter
national Match Corporation approximately $78,000,000 par value of
securities now owned or to be presently acquired by those companies in
obtaining match monopolies from various governments. An issue in
December was to enable the company to acquire interests in the
Swedish lumber and wood-pulp industries and to cooperate further
with the Swedish Match Co. and International Match Corporation.
FAR EAST--AMERICAN TERRITORIES ANIO POSSESSIONS
There were no Far East government issues floated in the United

States in 1929. Because of the purchase of the public utilities of the
International Settlement of Shanghai by the American and Foreign
Power Co., $50,000,000 of its issue of preferred stock in March was
allocated to China. The only other corporate loan was one of
$1,450,000 by the Toho (Japan] Electric Power Co. (Ltd.) to refund
$10,000,000 of 6 per cent notes previously sold in this country.
Government issues for the noncontiguous Territories and posses
sions of the United States were not large and were used for public
improvements. The corporate issues were small and for various
industries.
THE YEAR'S OFFERINGS, BY COUNTRY OF ISSUE
The following table gives the totals of the foreign capital offerings
in the United States during 1929, by countries and by class of issue,
It shows also the total net nominal value and the net amount of
discount or premium at which the issues of each country were offered
to the investing public.
12
TABLE 6.-PAR VALUE of For EIGN SECURITIEs PUBLICLY OFFERED IN THE

UNITED STATES IN 1929, BY COUNTRIES
Nominal capital . |
!
st in : it i (; overnment Total net Net discount

-
( ountry
.
ºlestination
.. . . . .”
issues and nominal(less! (–) or
àpit: government- (ºuri,orate Total issues refunding) | premium (+)
guaranteed issues Juill issue:
corporate -
issues |
Europe: -
International -- - - - - - - - - - - - - - ... . $7,720,745 $7,720,745 $7,720,745 ----. ---------

I)enmark-- - - - - - - - - - - - - - - - $3,575,000 - - - -- - - - - - - 3, 575,000 1, 575,000 —$1S7, 687.
France--- - - - ---------...- - - - - - - - - 200,000 200,000 200,000 --------------
Gerinany. . . . . . --- . . . . . 21, #76, ()()) - 10. 14), ())() 31.625,000 29, 625,000 —1.984, 590
Great Britain---- - - - - - - - - - - - - - - - - - - - - - - 19.0%), 597 19,060, 597 19,060, 597 —100,000
Italy---- - - - ----------- - -- - - ---- 13, 700,000 13, 700,000 , 13,700,000 . —511, 875
Ruinania - - - - - - - - - - - - - - 7, 110, 500 : 5,419,500 5,419, 500 . —650,340
Sweden - - - -- -- - - - -- -- - - - - - - 64,671, 339 , 64, 671, 339 : –522,000
Total Europe... -- . . . -- 501, 68l 145,972, 181 141, 97

Canada ---- . . . ------ - - oio, 700 T308,750,300
I, at in America: -
International - - - - - - - - - - - - - 50, 827, 200 59, 827, 200 59, 827, 200 .
Argentin: - - - -- --- - 1, 500,000 3, 185. ()()() 4,685,000 3, 185,000
I3razil - - - - 10, ~98, 000 5, 485,000 16, 383,000 16, 383,000
("hillo - . - - - - - - - - - - - 42, 400,000 28,000,000 70, 400,000 70, 400,000
("olombia. . . . ... . . .- --- 1, 750,000 :- - - - - - --- 1, 750,000 . 1, 750,000
Cuba- - - - - - - - - - -- -- 10,000,000 7, 500 17, 927, 500 17, 927, 5
Mexico- - - - - - l, , ()() | , 500 1. , 500
Panama º' (), ()()() 04(), ()'\0 1. 410, 00ſ) 1. 140, 000 -
Venezuela 2,700, ()()) 2,700, 000 2,700,000 . . .. . .--.
Total Latin America. . . . 67,048,000 : 109, 402, 200 : 176, 450, 200 174, 950, 200 – 1, 780, 190
Far East: ſ - - - T
China--------------- . - - 50,000,000 : 50,000,000 50,000,000 - - -
Japan.----------------- - - - - 11, 15(), ()()() | 11, 450,000 1, 450,000 |
Total Far East - - - - - - - - - - - - 61, 450, 000
U’nited States Territories and
Iossessions:
Alaska ------------- - - - --. . 5, 200,000 5, 200,000
Hawaii - - - ------- - - - - 75,000 3, 895, ()().)
Philippine Islands- - - - - - . 2, 500, ()()() 3, ()()(), ()00 3.000, 000
Porto Rico - - - - - - - - - - - - 1,070,000 | . . . ... - - 1,070,000 1,070,000
Total Territories and lºos- | -
Sessions---- ----- - - 5, ()()(), ()()() | 8,075,000 13, 165,000 13, 165,000 +117, 170
Grand total offerings...... • 22,310, ºn ºf 705,787, as Tºo sm T-II, II, ſº -

| -
GOVERNMENT SECURITIES
Foreign government securities sold on the American market in

1929, exclusive of government-guaranteed corporate issues, amounted
to $150,000,000 and were divided geographically as follows: Canada,
$86,000,000; Latin America, $46,000,000; Europe, $13,000,000; and
United States Territories and possessions, $5,000,000, In 1928 the
total was $643,000,000, Latin America, alone, obtaining then more
than double the entire government flotations for 1929.
The two German issues were by the city and the Province of
Hanover for public improvements. The Rumanian loan, as pre
viously explained, was for stabilization and public improvements.
The purpose of Canadian loans was not specified in at least half of
the cases; when stated, a fairly even division was noted between
refunding and public works, especially highway construction. The
Latin American issues were primarily for public works.
-
13
CORPORATE SECURITIES
Corporate issues, including those guaranteed or controlled by

governmental units, amounted to nearly four-fifths of the total
issues of 1929. In the 1928 bulletin the statement was made that
the ratio of corporate to total issues was steadily increasing, and the
following percentages were cited: 1920–1924, 30 per cent; 1925, 40
per cent; 1926, 55 per cent; 1927, 48 per cent; and 1928, 57 per
cent. The ratio for 1929, 78.7 per cent, is partially due to the peculiar
conditions of the year. The long-run tendency has been for an
increase in the ratio of European and Canadian corporate issues to
total issues and a decrease for Latin America. The contrary was
the case in Canada and Latin America in 1929, but the long-run
tendency may not have been reversed.
The government guaranteed or controlled corporate issues
amounted to $112,000,000, of which $74,000,000 was for Canadian
railways, $20,500,000 for Latin American banking institutions, and
the balance for German and Danish public-utility enterprises.
In 1929 common stock amounted to 16.9 per cent of the total
foreign corporate (including government-guaranteed) issues floated
in the United States, as compared with 6.2 per cent in 1928 and 8.5
per cent for the period 1914–1928. This figure can not be taken at
its face value, however, inasmuch as three-fifths of the common
stock total was made up of issues by American corporations. A
transaction of increased relative importance during the year was the
purchase of foreign corporate stocks through right soffered to pres
ent stockholders. Such transactions will probably be more frequent
in the future but can never be completely measured.
The following table shows the classes of foreign corporate securities
(including government-guaranteed) publicly offered in the United
States during 1914-1929:
TABLE 7.-ToTAL NoMINAL For EIGN Coit Poit ATE SECURITIES (INCLUDING
Gover NMENT-GUARANTEED Issu Es) PUBLICLY OFFERED IN THE UNITED
STATEs, 1914–1929
Corporate Corporate Stocks || Tºtal nominal

bonds 1 | ' ,, | value of corpo
Preferred 2 Common 3 rate Securities
-
"
$7,928,750 - - - - -- - -- --- $7,928, 750
7, 590, odó | $1,250,000. $750,000; }º
80,455, 000 63,321,000 16, 224, 800 159,000, 800
108,640,000 18, 992,000 14, 500,000 142, 132,000
12,450,000 1, 295,000 : 1, 125,000 14, 870, 000
97,080,000 14, 420,000 33, 635,000 145, 135,000
160,910,000 17, 150,000 29, 860, 000 207, 920, 000
157, 112,249 25,000,000 9, 274, 500 191, 386,749
209,082, 200 4, 250,000 7, 100,000 220, 432, 200
95,935,600 38, 400,000 16, 424, 500 150,760, 100
312, 930, 000 28, 100,000 11, 502,500 352, 532,500
460, 646, 650 65,065, 600 11, 120,000 536, 832, 250
575,308,000 34, 192,800 122, 148,050 731,648,850
684, 862, 500 23,709, 000 54. 708, 210 773, 279. 710
1928: '. -
Government-guaranteed.------------ 247,000,000 5, 175,000 4,080,000 256, 255,000

Private---------------------------- 477,650, 600 62, 584, 200 48, 645,880 588, 880, 680
Total---------------------------- 724,650, 600 67,759, 200 52,725,880 845, 135, 680
1929: l - -
Government-guaranteed.----------- | 93%%|…]… … użºłº

Private ----|_203,063,000 146, 409,089 93, 976, 492 443, 448, 581
Total.---------------------------- 315,436,000 146, 409,089 93, 976, 492 555,821, 581
Total, 1914–1920------------------------ | 4,079.126,540 549,213,689 385,074,933 TFII3 IITU
* Nominal (face) value. * Nominal (ſace) value except when sold in units with common stock.
* Selling price.
14
CLASSES OF INDUSTRIES FINANCED
The leading industries financed in 1929 were public utilities,

railways, matches, banking and credit, paper, and mining. The
railway and paper issues were entirely Canadian, the banking and
credit and mining issues chieſly Latin American. The public-utility
issues were more widely distributed.
These industries may be classified in order of volume as follows: (1)
Service enterprises, including public utilities, transportation and com
munication companies, and financial institutions; (2) manufacturing
enterprises; (3) primary enterprises, including mining, petroleum,
lumbering, and fishing companies; and (4) commercial and miscel
laneous enterprises. The amounts obtained by each through capital
issues in the United States during 1929 were: Service, $369,000,000;
manufacturing, $129,000,000; primary, $41,000,000; and com
mercial and miscellaneous, $17,000,000.
The following table indicates the extent and proportion of diversi
fication by industries in 1929 and 1914–1929:
TABLE 8.—TOTAL NOMINAL VALUE OF PUBLICLY OFFERED FOREIGN SECURITIES
(INCLUDING GoverNMENT-GUARANTEED Issues) PURCHASED IN THE UNITED
STATEs, BY INDUSTRIES, 1929 AND 1914–1929
Industry . 1929 ! 1914–1929
Public utilities---------------------------------------------------------- $20,393,550 $1,206,960,250

Railways--------------------------------------------------------------- 123,456,000 : 901, 287,750
Banking and credit companies--------------- 33, 872, 500 700, 639,075
Paper
Sugar companies-----------------------------
companies. ------...-------------------- 33,805,000 I
476,807,
349, 450
673, 990
Mining companies -------------------------- 32, 294,699,500
Petroleum companics------------------------ - - 3.557, 500 : 189,082,245
Iron and steel companies--------------------- 10,493,000 163,213,000
Match companies------------------------------------------------ 61,238,339 : 160,413,689
Steamship companies---------------------- - - - - - - - - - - 5,000,000 103,170,000
Chemicals - --------------------------...- - - - - - - - - - - - - - - - 8,919,092 82,348, 592
Electricalº and machinery------- -- 10,000 65,010, 000
Industrial machinery-------------------------------------------- 63,340,000
Miscellaneous manufacturing--------------------- --------------- - 34, 446, 750
Textile companies------------------------------------------------- - 31, 200, 400
Harbors and docks------------------------------------------------ - - - - - - - 28, 225,000
Automobile companies-------------------------------------------- - - - 22,550,000
Department stores---------------------------------------------- - : - 21,583,750
Tobacco companies. ------------------------------------------- - I 20, 219, 650
("hurches------- - - 18, 900,000
Rubber compani 16,800,000
("hain stores- 16,416,600
Fruit compani --- 15,092,500
Hotel companies 7,450,000, 13, 740,000
Cable companies 270,000 12,827,000
Izumber companies-- 250,000 11,697,249
Pairy companies------------------------------------------------------------------------ - 10, S60,000
Motion pictures------------------------------------------------- 313,650 6, 454,650
Schools -------------------------------------------------------------------------------- 5,060,000
Realty companies----------------------------------------------- 490,000 4,610,000
Fishing--------------------------------------------------------- 4, 265,000 4, 265,000
Cement companies----------------------- - - - - - - 4,000,000
-Amusement companies------------------------------------------ 3,750,000
Grain and elevator companies--------------. -------------------- - 2,547,200
Trading companies----------- - 5,000 : 2,611,880
Glass industry---------------------------------------------------- t 1,500,000
Aviation industries. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 375,000 1,375,000
Miscellaneous----------------------------------------------------------- 4,755,000 | 46,037,000
Total Securities--------------------------------------------------- 555,821,581 | 5, 113,415, 170

15
INTERNATIONAL RAMIFICATIONS OF BUSINESS
The above compilation for 1929 includes the issues of 21 companies

which are either incorporated in the United States or controlled by
companies so incorporated. They floated bond and stock issues in
1929 totaling about $204,000,000. The fields covered by these com
panies include public utilities in Canada, Europe, Latin America,
and the Far East, chemicals in Europe and Argentina, merchandising
in Canada, petroleum in Mexico and Venezuela, and a hotel in Cuba.
Below is a list of these 21 corporations. The details of their issues
will be found in Table 9.
Crown Cork International Corporation. (Europe.)
Coty (Inc.). (Europe.)
Utilities Power & Light Corporation. (England.)
Italian Superpower Corporation of Delaware. (Italy.)
International Power & Paper Co. (Canada.)
North American Gas & Electric Co. (Canada.)
International Hydro-Electric System. (Canada.)
International Milling Co. (Canada.)
Oneida Community (Ltd.). (Canada.)
Metropolitan Chain Properties (Ltd.). (Canada.)
Toronto Chain Stores Terminals. (Canada.)
American & Foreign Power Co. (Latin America and China.)
North & South American Corporation. (Latin America.)
Intercontinents Power Co. (Argentina and Brazil.)
Consolidated Chemical Industries (Inc.). (Argentina.)
The National Hotel of Culya. (Cuba.)
Ammex Petroleum Corporation. (Mexico.)
El Paso Electric Co. of Texas. (Mexico.
National Venezuela Oil Corporation. (Venezuela.)
Alaska-Pacific Salmon Corporation. (Alaska.)
Alaska Public Service Corporation. (Alaska.)
EIGN
9.—For
TABLE
PUBLICLY
Issues
CAPITAL
UNITED
THE
IN
OFFERED
CALENdAR
DURING
STATES
1929
YEAR
GOVERNMENT-GUARANTEED
GOVERNMENT
1AND
ISSUES
of
Total
Estimated
|
if
issue
for
portion
of
value
Par |Approxi
Approximate
Yºº
º
and
Issuer
security
of
class
partly
|Interest
refunding
in
flotation
to
price
Term -
.#.
to|
taken
Ameri-
States
|United
public-
maturity
abroad
cans
EUROPE
Denmark:
cemt|
Per
Dollars
Years
cent
B.1°--------------------------
external
Co.,
Telephone
G.
F.
S.
*CFebruary---|
7,000,000
2
5openhagen
5
||2,000,000
575,000
3,5.38
94.75
Germany:
waterworks
Harz
Hanover,
of
Province
series------------------
Second
loan,
6%
4,000,000
January-----|
20
------------
3,725,000
94.50
7.00
debentures----------
sinking
Co.,
Electric
City
Berlin
fund
February–
2,000,000
9,651,000
15,000,000
6%
30
7.02
50
93.
G.
F.
S.
Co.,
Electric
Prussian
debentures
6
|25
91.00
6.75
--
&
Power
Unterelbe
Co.,
participa-
American
by
represented
notes
gold
do-------------------
|-----
6
L600,000
||------------
50
6.
9ight
2 9.00
certificates.
tion
|
bonds----------------------------
gold
October-----------------
convertible
external
Hanover,
of
City
1
70
------------
3,500,000
7.30
98.00
ultilanla: R
- Monopolies
Rumania
of
Kingdom
S.
external
guaranteed
Institute,
B.,
G.
F.
*--------------
7ebruary
|F5,419,500
3
88.00
0
------------
07
8.
development
and
|stabilization
1929.
of
loan
-
5.
Europe-------------------------------------------------------------|--------------
Total,
||--------|-----------|--------------|----------
||4,000,000
500
30,470,
CANADA
debentures-------------------------
sinking
Columbia,
British
of
Province
ſund
4%
||4,000,000
3,824,000
94.69
40
4.80
gold
district,
water
Winnipeg
Greater
bonds----
|130 -
625,000
5,750,000
4.90
101.56
bonds-------------------------------------------
Quebec,
of
City
30
5
|---
1,500,000
4.85
102.00
---
bonds------------------------------------------
Township,
York
1
58
|-
334,000
99.00
5.25
4%–5
Saskatoon.------------------------------------------------
200,000
30–5.00
5.
88.00–96.00
10–30
of
City
S.
Columbia,
British
of
Province
debentures-
G.
F.
5
2,689,000
5.00
100.00
25
---------------------------------------------.-----------.-------
5
Sam"
2,000,000
5.00
100.00
25
equipment
Railways,
National
Canadian
1929
K,
series
certificates,
trust
75
10–5.
5,
99.36–99.75
1–15
5
768,000
7,
("ity
bonds
Edmonton,
of
325,000
2
5.20
98.66
55
bonds--------------------------------
Scotia,
Nova
of
Province
30
5
700,000
5.00
100.00
bonds------------------
coupon
provincial
Ontario,
of
Province
19,900,000
5.00
100.00
3
50
bonds-----------------------------------
serial
Toronto,
of
City
504,000
3,
|9158.75–100.00
||5,00–5.15
-30
guarantced
Co.,
Ry.
National
("anadian
bonds------------
gold
5
5+
000
26,002,
40
90.75
bonds------------------------------
gold
Manitoba,
of
Province
2,000,000
---2
99.75
55
5+
Commission,
bonds---------------
Metropolitan
Montreal
gold
5
37
99.75
2,052,000
5+
B.----------
G.
F.
S.
Quebec,
of
City
3,524,000
---do--------|
99.75
3
50
2,290,000
5+
bonds--
Columbia,
British
of
Province
3,036,500
September--|
5.00
100.00
3
50
900,000
guarantee
Co.,
Ry.
National
Canadian
October
40
5.15
5
0,000,
20,277,000
98.50
debentures-------------
noncallable
Saskatchewan,
of
Province
---do---
5
170,000
1,
2,000,
30
99.75
5+
E.
5
408.
500 5.00
5.15 490.
550 5%
0 5.50
1 5%
100.00 5.
50 5 4%
100.00 30
2 5.00
100.00 40
5.00
50 31
92. 3101.50
;0,0 0,0 0 99.
4.90
5 39
20
5. 6%
|30
390,000
4,
-91.50
- - - - - 6%
7.20 - - - - - - 8,400,000
|87.00
508,000
6,
30
60
7. 6.482
393.
650 194.00
0,0 30,0 07
3 392.00
6
60
6. 37.
50 -93.00
1,750,000
4,0 10,0 0 727.75 0-,0- 0-,-0 -0 |
- - 0- - - 5%|
3%–4%
-15.
100.00
50 6-500,000
-%
20----
6.65
99.50 |4%
40–101.70
|100.
5–29
4.15 61 5101–24
|5
4.50 4%
.5 –105.|
------ 10 .0 –104.82
5–30
75
40–4.
4. ------ 4%
|101.77
500,000
------
30
40
4. ------------ 4%
|4.
320,000 4%
750,000
1-02-.9-3–-10-4.-
- - - - - - 44
102.43
25
30 |4.25
23–41
------------ - ------------
5
390.75
5+0 5+
4%
94.00
20 4%
16
1,604,
95+
5+
1–30
16
|
500,000
1,
,500,000
100.00
158- |9,- 4-78|-160-,-80|-7-50

-| ------ 167-,500,000
-| |,- 0- 4- 8-,-0|- -0
- - - -| - - - - - -
5,000,000
November-. IDecember- -
February-
-
October- -
- January- - -
19Ju
B.
G.
F.
S.
secured
external
Janeiro,
de
Rio
of
State
2- - - - - -
improvement
public
series,
first
bonds,
gold
Manila,
City
1929----
of
loan
consolidated
Chilean
1929----
A,
series
B.,
G.
F.
S.
external
loan,
municipal
Ciormsti-smoirotngeargse
Harbour
fThe
Montreal,
of
bonds
gold Achi.”
series
1929,
loan
gold
external
secured
Geraes,
Minas
of
------
guarante d
Panama,
de
Nacional
Banco
D------
series
bonds,
gold ----------
TOESR EISTOIRONESHawaii
STATES
PUNITED
AND
ºpartment
D- - - - - - -C
series
B.,
G.
F.
S.
external
Antioquia,
of
improvement
public
Eławaii,
of
Territory
bonds
gold
1929
B.
G.
F.
S.
guaranteed
Chile,
of
Bank
Mortgage
certifcates- - - - - -
serial
works
public
Cuba,
of
Republic
gonudsa-r-an-t-e -d
Co.,
Ry.
National
bCanadian
gold
AMERICA
LATIN
B.- - - - - - - - -
G.
F.
S.
loan
external
Chile,
of
Republic
*- - - - - - - - -
notes
gold
treasury
Fe,
Santa
of
Province
bills
treasury
Columbia,
British
of
Province Tose iorns- -i-t-or- i- e- s-
pTotal,
and
1The
loan
gold
Rico,
Porto
of
People
92- - - - - - - - -The
bonds- - - - - - - -
gold
Rico,
Porto
of
People
bonds
gold
Hawaii,
of
Territory
--
bonds
gold
Manitoba,
of
Province bCounty
gold
Hawaii,
of
onds- - - - - - - -
bonds- - - - - - - - -
gold
Albertº,
of
Province
bonds
gold
Montreal,
of
City table.
of
end
at
Footnotes
America- - - - - - - - -
Latin
Total,
Cand- - - - - - - -
Total,
Province City
g
Ontario,
of bonds
Ottawa,
of
Islands:
Philippine
Rico:
Porto
Argentina: Colombia:
Panama: aWall:
Same- - - - - - - - - Same- - - - - - - Brazil: Ile: Ulda:
CAPITAL
EIGN
9.—For
TABLE
OFFERED
PUBLICLY
ISSUES
STATES
UNITED
THE
IN
CALENdAR
DURING
1929–Continu
YEAR
ISSUES
(YORPORATE
|
of
Total
Estimated
-
*A* iſ
issue
for
of ºr
portion
value
Par
Approximate
*
|*Month
when
...'.
and
Issuer
security
of
class
partly
|Interest
reſunding
in
flotation
Terin
to
price
offered
first -
yl
º.
taken
Ameri-
to
States
United
public
-
maturity
abroad
*:lns
EUROPE
Dollars
International:
|P
Dollars
I)0llars
cent||
er
Years
cent
Per
A------------------------------------
Corp.,
April--------|------------
International
Cork
Crown
class
------------
3,052,500
----------
$16.50
----------
(*)
-
(Inc.)-----------------------------------------------
September--|--...---
Coty
-----
----------
$45.00
||---------.
245
668,
4,
(5)
(4)
France:
Corp.
Securities
Power
Foreign
convertible
trust
collateral
ſirst
(Ltd.),
bonds"----------------------------------
||---------
200,000
100.00
2
60
6.00
----------------------------------
-
Germany:
elektrische
ſur
Gesellschaft
“Gesſurel.”
----------
$25)
(par
Unternehmungen
$58.50
435,000
(3)
(4)
Aktien-Gesellschaft-------------------...---------------------
Tietz
Leonhard
$26.00
150,000
-
$50)----------------------------------
Bremen
of
G.
A.
Bemberg
P.
J.
(par
|.
900,000
-
-
mortgage
gold
Corp.,
Mining
Harpen
1929
of
series
bonds,
000
10,000,
do-------|
000
66:1,
3,
-
-
-
-
-
-
B.-------------------------------------------
G.
Line,
Steamship
“Hansa”
----|------------
October.
000
5,000,
Great
Britain:
|
5.
(Ltd.)
Industries
Chemical
Imperial
January-----|-----------
$4.86)-------------
(par
|
517,500
----------------
(Ltd.)-----------------------------------------------
Co.
Record
Decca
The
February---
243,750
&
Power
Corp.,
79Utilities
debentures
gold
LI.
5Iight
,000,000
Cables
(Ltd.)---
Wireless
and
'.
270,000
Corp---
Light
&
Power
British 550,
0
Co.
&
Johnson
Pinchin,
(Ltd.)
$7.30)---
(par ,347
-
(Ltd.)
Co.
Graphophone
Columbia
$2.43)
(par 500,000
9,
Co.
Tobacco
British-American
(Ltd.)----------- 146,000
Italy:
$26)-------------------------------------------------
(par
Italy
of
Co.
Pirelli
3,000,000
first-mortgage
Co.,
Breda
Ernesto
B.7--
G.
F.
S.
4,050,000
of
Co.
Service
Electric
United
--
$7.87)
(par
Italy
2,350,000
Fraschini-----------------------------------
Isotta
-
100,000
-
$2.62)------------------------------
of
Co.
Service
Electric
United
(par
Italy -
º
Corporation
Superpower
Italian
series
debentures,
gold
Delaware,
of
“A,”
:
4,000,000
1929.7
Sweden:
Co.'---------------------------------------------------------
&
Kreuger
oll
T11,000,000
d
debentures--
G.
F.
S.
secured
Same,
100,000
26,
(par
Co.
Bearing
Ball
Swedish
$20.80).
|--
3,433,000
--
Co.'---------------------------------------------------------
Toll
&
Kreuger
138,330
24,
Europe-------------------------------------------------------------|--------------------------
Total,
501,681
115,
A
in
c.A.N.A.
Budweiser
Browing
Canada
of
Co.
-----------------
(Ltd.).
January----- -------------------
("anada
&
faving
S
Corporation
ofupply
(Ltd.)
(bonus
3c
to
pre
10 ommon i (10.------
-----
shares).
ferred
&Canadian
PPower
Investments
aper
(Ltd.)-----------
do------- -----------------------------
-
Dominion
&
CTar
Co.
F.
S. hemical
(Ltd.),
debentures,
G.
series
A do---
5Same
of
(bonus
c
with
ommon
shares)---
preſerred
10
International
Power
Co.
P
&
c
C aper
class
ommon
stock
Montreal
Tramways
general
Co.
refunding
and
mortgage
EWood
& nglish
collateral
(Ltd.),
notes-------
gold
trust
...
Canadian
International
Investment
(Ltd.)-
Trust
February-
Canadian
Investors
| (Ltd.)-----------
Corporation
--010------ ------------------------------
Consolidated
Investment
Corporation
Canada,
of
collateral
first
gold
trust
'L----do------
bonds,
series
A.”
l
'-----do------
Tryden
Co.
Paper
first
(Ltd.),
S.
mortgage
B
G.
F.
(Vancouver,
Building
British
Columbia)
closed-mort:
first
i......io.III.
Medical
pººl
and
gage
B.
G.
F.
S.
Metal
Mining
and
(Inc.)
-----------------
Shares -------------------------------
North 1,000,000
Gas
EAmerican
& lectric
debentures,
gold
Co.,
7series
1944
due 300,000
14
Same,
A
class
stock
United
Securitics 1,
237,000
collateral
(Ltd.),
F.
S.
trust
se
B.,
G. 1,600,000 ()00
225,
Dominion
Bell
("o.
Canada,
Telephone
of
first-inortgage
series
B.,
(i.
13
Stores------------------------------------------------------------
TX] | 15,000,000 500,000
7,
(bonus
(Ltd.) -
500
007, 225,000
TXuffering
Paving
C
&
Stone
c
3 rushed
ommon-
preferred).
10
-to 2,000,000 25,000
- - - - - -
Famous
Canadian
Players
Corporation
(Ltd.),
- trust
voting
com-'-----
certificates
for
do------ 8,
125
434, -313,
650
mon §
|shares. Great
C
&
Britain
anada
Investment
Corporation,
convertible
debentures
7 6,000,000 1,
450,000
International
Hydro-Electric
Systein,
convertible
(lebentures
-gold
Power
Corporation
Canada
of
convertible
(Ltd.),
debentures-- 13,000,000
Shawinigan
Water
Co
P
& ower 2,500,000
Same,
first-mortgage
collateral
and 15
6,000,000
F.
S.
trust
B
G.
(i.i.d.).
A
filalgamated
Electric
Corporation }(M) 4,000,000
('anada
C
&
Wire
able
(Ltd.)
("o.
------ ----
1,000,000
International
Hydro-Electric
S 3,000,000i0,000.
International
Co.17-----------
Milling 1,
-
5,000,000
Anglo-Norwegian
(Ltd.)
Holdings
-- 1,000,000
Canadian
Pacific
$100)----
(par
Co.
Ry. -||
1,000,000 3
Canadian
Mining
Corporation
Securities
(par 5- 1,000,00012,
75(
$10)-- i.
iſo,000
Canadian
Pacific
equipment
Ry.,
gold
trust 1,025,000
certificate 30,000,000
National
(Ltd.)----
Distillers 21,650,000
neida
()
Community
13
(Ltd.) 200,000
Same,
"-------------
Inotes
G.
F.
S. -
1,000,000
Simpsons
(Ltd.),
collateral
ſirst
F.
S.
trust
G.
series
B., 2,000,000
A---------
es
200,000
West
Hydro-Electric
Canadian
Corporation
gold
-(Ltd.),
debentures :
650,000
Canadian
International
Paper
first-mortgage
Co.,
gold
bonds
Simpsons
(Ltd.)
------- 25,000,000 21,745,000
Çanada
$100).I.........
(par
(Ltd.)
Bell
('o.
Telephone
of .. 10,000,000 30,000
-
-
-
-
-
iCanadian
A nerican
Service
Public
Corporation,
collateral August
- ----
notes.
gold
--- September--
-----!
at
Footnotes
end
table.
of
Š
1929—Continued
YEAR
CALENDAR
DURING
STATES
UNITED
THE
IN
OFFERED
PUBLICLY
Issues
CAPITAL
EIGN
9.—For
TABLE tº."
ſº.
ſº
!.
EstimatedApproxi in
of
Total yieldmaturity
toto
Term abroad
Cans Dollars
Years
cent
Per 50 7,
93.00
30
5. -20
,000
500,000
-----
100.00
6.00 |3,000,000
400,000
03 450,000
20
6.
90.75 6.00||
|-
10 350,25
1|
100.00 0 0,0 0
5.00
100.00 |96.00
1,500,000
------
6.35 500,000
1,
6.35 32,000,000
96.00 |-25
28,000,000
- - - - - 6,250,000
15
6,
99.00 |-100.00
-----
6.00 ------------ |25
1,000,000
------
95.00
40
5. ------------
}.
Ap roximate
for
portion
of
value
Par
if
issue (13)
2,400,000
-----
$12.00 - - - - 9,000,000
-100.00
200
50,827,
(10)
()
----------- -$30.00
-- - - - - (10)
------------ -- -- - -|- (10)
2$25.00
|-*
-00,000 |$99.00
1,485,000
-- - -- ---
-- --- ----- - - -(*)
$25.00
|-- --- --| $99.00
500,000
2, (- 10)
-
!1,485,000
---- (24)
- - -- - - - 337,
500
|1,677,
$110.00 -$4.50
500
|-- - -- - -
------------ ------------
----------- |- -- - - - - $3.00
-940,000
$23.50 - - -- - - - -
|2,700,000
------------
----------- -----------
------------
public
Ameri-
to
States
Inited
aken
-
|
1-54-50,000
9-,-0|1- 9- ,-7|-0-
|
200
109,402,
IS UES.–Continued
CORPORATE
1 ,0 0,0 0
do------| do------
!- - - - - -
Mand
fiorºnsvtr-emrootritngbalgte enac
(Ltd.),
Co.
cOil
trust
collateral
PMS.
fChain
c(Ltd.),
B.----
G.
F.
ieortnosrvtpo-epmrotrligbtaelgsen first-mortgage
(Texas),
Co.
Electric
Paso
El
1925
of
issue
A,
series
bonds,
gold
Tioerlstm-aimotnreatrlgasgl,e
Stores
Chain
cfToronto
B7--
G.
F.
S.
trust
stock
common
and
debentures
income
Cuba,
of
Hotel
National
The
fºutaro
(Ltd.),
Co.
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l, 3. BUREAU OF FOREIGN AND DOMESTIC COMMERCE

william L. COOPER, Director
REGEIVED
MAY 1 2 1930
O. S. U. LIBRARY THE
MOTORIZATION OF NORTH AFRICA
AF
05
lè5
$89
UNITED STATES
WASHINGTON : 1930
For sal* by the Superintendent of Documents, Washington, D. C. - - - Price 10 cents

FOREWORD
The value of American automotive products exported to North

Africa during 1929 reached a total of $1,964,706, compared with a
1928 total of $1,059,151, an increase of 85 per cent. Moreover, the
increase has been steady since 1925, when the figure was $596,162.
Morocco took about three-fourths of the exports to North Africa
during 1929, and it is noteworthy that while its passenger-car imports
increased about 25 per cent in number, the increase in value was
250 per cent, indicating sales of higher priced cars.
The need of North Africa for motor transportation is pronounced.
Its railways are few and inadequate; in fact, many large sections have
no means of communication except the motor vehicle or the traditional
donkey and camel. The automobile is credited with doing more for
the development of the area than any other agency. A fairly good
network of highways now exists in each of the countries (there is a
regular bus route across the Sahara), except in Tunisia, where roads
are somewhat fewer and of a comparatively inferior quality. Plans
have been made to improve and add to those already existing.
There are, naturally, many vital problems incident to the growth
of the automotive market in North Africa, such as distribution sys
tems, agencies, financing, and particularly servicing. These and
many other questions, as well as pertinent basic economic data are
dealt with in this report, which will undoubtedly be of great interest
and benefit to American exporters of automotive products.
Grateful acknowledgment is made of the assistance of the United
States consular officers at Casablanca, Tangier, Algiers, and Tunis in
obtaining material for this report.
- WILLIAM L. CoopFR, Director,
APRIL, 1930.
(II)
THE MOTORIZATION OF NORTH AFRICA
By H. C. Schuette, American Trade Commissioner
THE TERRITORY AS A WHOLE
The vast territory extending from the Atlantic Ocean to the Italian
colony of Libya and from the Mediterranean to the Sahara is commonly
referred to as North Africa. It embraces the countries of Morocco,
Algeria, and Tunisia, having a combined area of more than 500,000
square miles. This district, more than one-sixth the size of the
United States, has a total population of approximately 13,000,000,
with not more than 67,000 automobiles in circulation to serve the
constantly growing need for motorized transportation.
Although a large share of the population can be dismissed from
consideration as potential owners of motor vehicles for years to come,
there are still several million people whose need for transportation
facilities is far greater than the need of an equal number of people
elsewhere, for in many sections of North Africa, particularly in
Morocco, railways are totally inadequate or even nonexistant, and all
communication in these sections must be by passenger car, truck, bus,
or motor cycle, or by the slower donkey or camel.
The mixture of Berber races that inhabited this country for several
thousand years came under the dominating influence of the invading
Arab hordes in the eighth and ninth centuries, and from that day to
this Islamic customs and religion have been the outstanding char
acteristics of the social, political, and economic structure of the people.
The capture of Algiers on July 5, 1830, by the French put an end to
four centuries of Barbary piracy and marked the beginning of European
influence. Gradually all of Algeria and Tunisia came under French
control, but it was not until the early part of the twentieth century that
orocco came under the same influence. In fact, not until the end
of the World War did European civilization begin to make appreciable
inroads upon Moroccan economic and social life, yet in the short
Space of the last 12 years this development has been very rapid, and
the large-scale construction of badly needed roads, railways, and other
Sublic improvements has had a great effect in raising the standard of
1Vlng.
Wäh the opening of the territory to Europeans, large numbers of
French and, to a smaller extent, Spanish and Italian immigrants and
capital poured into North Africa to take advantage of the possibilities
of a new country. A number of steamship companies and tourist
agencies were not slow to capitalize the climatic advantages and the
many picturesque cities of the country, and North Africa is becoming
increasingly
8 Ilke.
popular winter resort for Europeans and Americans
(1)
2
MARKETING AUTOMOBILES IN NORTH AFRICA
In a study of the automotive market of North Africa, there are

few generalities that are applicable to the whole territory, and each
country must be analyzed individually. Nevertheless, there are some
points that are common to all three markets and other points that are
common to Algeria and Tunisia only. In the matter of duty, for
example, both Algeria and Tunisia impose a tariff of 45 per cent ad
valorem on motor vehicles, except French, which are free of duty.
This is in sharp contrast to Morocco, where there is a uniform rate
of 12% per cent ad valorem for all countries, including France.
For more reasons than one, Morocco should not be grouped with
Algeria or Tunisia. It has different customs and different customer
prejudices, even among Europeans living there, inasmuch as they
are in the habit of buying from all countries because of the equality
of treatment. Although French goods often enjoy a sentimental
preference on the Moroccan market among the European population,
the bulk of which is French, it may be noted that after a short resi
dence in this country the immigrant becomes more Moroccan than
French. This is especially true in so far as his purse is concerned,
and he is less likely to be prejudiced against the goods of foreign
manufacture and does not hesitate to purchase in the cheapest market
irrespective of nationality. On the other hand, the largest general
importers are French; many are capitalized in France and have their
head offices in that country.
In many cases agencies for American cars for Morocco, Algeria, and
Tunisia, or all three, have been given to firms located in Paris which
operate in the territory through a subdealer not in direct touch with
the American firm. This is not conducive to a satisfactory sales
volume, and the practice usually results in difficulties of varying na
ture. It is equally impossible for a dealer in Algiers or Casablanca,
for example, to act effectively as the distributor for all three, or even
two, of these countries; in other words, a separate distributor should
be appointed for each territory.
American manufacturers, in setting down hard and fast rules from
which they will not deviate, often do not realize the difficulties of the
distributor, and if they were better informed as to the commercial
and sales problems of their dealers the situation would be helped con
siderably.
Many American cars are shipped to Algiers from Marseille, but
this should not be done in the case of Tunisia because of possible tariff
difficulty, for an American car, having paid the duty in France, may
be assessed again upon entering Tunisia, inasmuch as the latter coun
try has the status of a protectorate. Although usually conforming
to French procedure, it may levy its duty upon the entry of the
product into the country unless accompanied by a French certificate
of origin, irrespective of the fact that the foreign commodity imported
may already have paid the French duty.
There are no real dealers' organizations in North Africa. Each
of the territories has its “chambre syndicale,” or chamber of com
merce, but these associations are general in character and interest
themselves in all branches of business. In practice the automotive
sections of the chambres syndicales are inactive. The only example
of a separate dealers' organization successful in definite results is in
3
the case of Algeria, where various dealers formed a separate company

to handle used cars. A more detailed discussion of how this plan
operates is contained in the section on Algeria.
The monetary standard of French Morocco is the Moroccan franc;
that of Algeria and Tunisia is the Algerian franc. Both of these cur
rencies are on a par with the French franc (about 25.4 to the dollar).
In Spanish Morocco, the Spanish peseta (about 7.7 to the dollar at
present rates of exchange) is legal tender, while in Tangier both the
Spanish peseta and the Moroccan franc are common currency.
MOROCCO
Covering an area of approximately 250,000 square miles, or some

what larger than the State of Texas, the Shereefian Empire, as
Morocco is sometimes called, is divided into three zones: The French
protectorate, a much smaller Spanish protectorate in the north, and
the international zone consisting of the city of Tangier and a small
strip of territory surrounding it.
The population of Morocco may be considered under three head
ings–Mohammedans, Jews, and Europeans. About six-sevenths of
the entire population consists of the native Moors, a mixed Arab
and Berber race. Morocco has been called the “Far West of the
Near East,” and the Moslem faith colors the social life of the people
to a greater extent than perhaps any other Mohammedan people.
Most of the inhabitants are engaged in agriculture and stock raising,
and the trade of the country is almost entirely in the hands of the
Jews and Europeans.
The climate consists of a hot summer and a short, rainy winter
season. Temperatures on the coast range from 50° to 60° F. in
winter and from 68° to 80°F. in summer. More extreme temperatures
are found in the interior. The mean winter temperature is about
56°. The rainy season is from October to April, but the rainfall is
exceedingly variable from section to section and from year to year.
Irrigation is necessary in large areas of the country. Morocco can
be compared to California as to climate and even topography. Like
California, it has a long coast line, backed by mountains, and a desert
to the east.
Arabic is the language of most of the natives, but French is under
stood by the more educated natives in French Morocco and serves
as the common political and commercial language of that protectorate.
The commercial language of Spanish Morocco and Tangier is Spanish,
although in the international zone French and English are also in
wide use.
Morocco is one of the few countries left in the world where the
practice of extraterritoriality still obtains. The Sultan of Morocco
rules his 5,000,000 subjects as nominal head, and the country has its
own currency, laws, and fiscal system.
The Act of Algeciras, to which the United States was a signatory,
grants equality to all nations trading with Morocco, including Gov
ernment contracts, and this circumstance makes the Moroccan market
more favorable toward American products than the markets of Algeria
and Tunisia. The treaty provides a 12% per cent import duty to be
levied on all goods entering Morocco, irrespective of nationality.
As a treaty privilege, the American consular courts at Casablanca
and Tangier have complete jurisdiction over American concerns and
-
4
individuals when they are defendants in civil or criminal cases. In

other words, they are exempt from local legislation except for such
laws as are approved by the United States Department of State, the
laws of the District of Columbia holding in all other cases. Amon
the special privileges enjoyed by American commerce is the so-calle
“régime of protected persons,” which means that an American firm
doing business on a large scale in Morocco is entitled to designate
native agents (either Moslems or Jews) in each major center of
business. These agents, called semsars, are also under the jurisdic
tion of American consular courts when defendants in civil or criminal
cases, thus giving them practically the same privileges as American
citizens in Morocco.
FRENCH MOROCCO
The French protectorate of Morocco includes the northwest corner

of Africa lying between the Rif and the high Atlas Mountains. Of
the three zones that make up the Sultan's territories, the French
protectorate is by far the largest and the most important from an
economic standpoint, and has 15,500 of the estimated 17,000 cars in
Morocco.
The richest, districts of French Morocco include the western port
cities and the interior as far as Fez and Marrakech. Southeast of the
Atlas Mountains and running almost from the Mediterranean to the
indefinite southern boundary of French Morocco lies the interior,
made up in the north of shelving plateaus and blending in the south
with the Sahara. The desert hinterland is sparsely populated with
nomadic tribes and is of little economic importance at present.
Population and standard of living.—According to the census of 1926,
the population of French Morocco was 4,216,824, of which 4,005,916
were Moors (Moslems), 107,512 were Jews, and 103,396 were Euro
peans, chiefly French, Italian, Spanish, Portuguese, and English.
The American population is less than 75.
The native Mohammedans are primarily agricultural people, and
less than 500,000 live in European centers. The remainder are to be
found in the rural, pastoral, and mountain districts, almost half in
seminomadic residence.
The Jewish population is becoming more and more Europeanized,
and the 40 per cent that may now be considered as being Europeanized
constitute an important consuming population. Of the 107,000 Jews
in Morocco, some 80,000 are resident in urban centers, and a large
fraction of the remainder constitute the small-village merchant group.
Among the slightly more than 100,000 Europeans, from 60,000 to 65,000
are French, the Spanish forming the largest proportion of the balance.
All but 6,000 of the Europeans are resident in the more important
cities.
Among the natives the standard of living is very low, and wages
are much lower than in Europe. The exception is the small number of
sheiks, or caids, who are the aristocrats of the country and who can,
in general, be considered wealthy. This latter class has so far been
practically the only car buyers of the native element.
Generally speaking, the natives subsist largely on the products of
the country and demand comparatively few imported articles; luxury,
in the American and European sense, is practically unknown amon
them. The standard of living among the better-class Jews an
Europeans closely approximates that of France.
5
Ordinary indexes for determining purchasing power, at least in the

automobile market, are not. applicable to Morocco. The motor
vehicle has never been considered in this country as anything else but
a necessity, because of the vital need of efficient, modernized trans
portation.
Industries and occupations.—Aside from the predominating impor
tance of agricultural pursuits, the production of cork and forest gums
and the mining of phosphates constitute the most important industrial
activities. The fishing off the coasts is fairly important, and there
is a considerable domestic production of wool and silk goods, leather
articles, embroidery, crude pottery, and brass and copper goods.
European manufacturing comprises 615 establishments, employs
about 7,500 persons, and has a total capitalization of 273,643,500
francs. A large proportion of it is centered at Casablanca.
Although mining has not been fully developed, with the exception
of phosphates, a growing amount of manganese, coal, lead, copper, and
zinc is being extracted.
There are also excellent prospects for fruit growing, but this phase
of farming has not been developed to any great extent, for the colonists’
chief interest so far has been a quick return on investment.
Foreign trade.—The imports of French Morocco in 1928 amounted
to about $78,383,000. The chief commodities imported were sugar,
coal, lumber and other construction materials, petroleum products,
tea, cotton goods, edible oils, hardware, industrial machinery, agricul
tural implements, and motor vehicles. Imports from the United
States during 1928 were valued at about $4,670,000 and were composed
mainly of petroleum products, agricultural implements, automobiles,
industrial machinery, and hardware, the United States having almost a
monopoly in the first two items. The United States was third in the
Moroccan import trade.
The total exports in 1928 amounted to about $50,000,000, of which
the declared exports to the United States were valued at $1,225,549,
placing that country in seventh place in Moroccan export trade.
The principal exports are phosphates, barley, wheat, beans, hides and
skins, cork, and livestock. The principal commodities shipped to the
United States are palm-leaf fiber, almonds, seeds, cork, sandarac
gum, goatskins, phosphates, snails, and wild onions.
Ocean transportation facilities.—The principal seaports of Morocco,
in order of importance, are Casablanca, Kenitra, Mazagan, Safi,
Rabat, and Mogador. The principal inland commercial center is
Oudjda, in the eastern part of the country. It is the chief entrepôt
for goods coming down from Algerian ports, and is second only to
Casablanca in the total amount of trade handled.
Regular steamship service is maintained between Casablanca and
Marseille, Bordeaux, Oran, Dakar, Tangier, Gibraltar, Canary Islands
ports, Spanish ports, and New York, while considerable business is
done by tramp steamers with other French ports and those of Algeria,
Morocco, Portugal, Belgium, Italy, the Netherlands, and the Scandina
vian countries. Regular direct monthly service in both directions
is maintained between Casablanca and New York. Merchandise
§ eastern Morocco entering by way of Oran is shipped to Oudjda by
railroad.
There are no special regulations, but goods should be well packed,
as there is a good deal of rough handling and much theft at the
wharves in the ports. Almost all goods are landed by lighters.
6
HIGHWAYS
To Marshal Lyautey, the first French governor general of Morocco

and “Empire Builder,” is credited a statement that motor vehicles
were responsible for the development of Morocco more than any
other single thing. The large rôle that automobiles have played in
the building up of the country is largely the result of the entirely
inadequate railroad transportation system and the far-sighted policy
of the French in building roads to connect the important centers of
population. As a consequence, the network of highways is fairly
complete at the present time, and most roads are kept in a good state
of repair.
The highway system of French Morocco consists of three categories:
Main or first-class roads, with a total length of 3,058 kilometers;
secondary or second-class roads, 1,194 kilometers; and rural roads,
about 500 kilometers. In addition, there is a large number of “pistes”
or desert tracks, many of which are practicable for automobile travel
except during the short period of the rainy season. All of the roads in
the first two categories are macadamized, and about 450 kilometers
are surfaced with tar or asphalt substances. The roads coming under
the main highway system for the most part connect the various ports,
as well as leading from the ports to the larger cities in the interior of
the country, and they serve also as a system of communication
between eastern and western Morocco and between Morocco and
Algeria.
The next most important group of highways are the roads of
secondary importance, used for the transportation of people and mer
chandise from the more productive parts of the country to the larger
cities that offer natural outlets for their products. These serve as
feeder lines to the main group.
The rural highways that connect the outlying settlements form the
third group of Moroccan roads.
All of the roads are constructed and maintained at the expense of
the Government public works service. Credits for the first two
categories come out of the budget for public works, and for the third
out of the agricultural budget.
The less important lines, or “pistes,” serve as a means of transporta
tion between smaller settlements, and the money for the construction
and maintenance of these lines is taken out of the credit given to the
controlling authorities of the regions, taking into account the amount
of taxes they furnish.
The administration of road budgets of the protectorate is assured by
the general direction of public works at Rabat under the control of
the general finance direction of Morocco and according to rules similar
to those being followed in France.
DEVELOPMENT OF MOTOR BUS TRANSPORTATION
The construction of an efficient system of automobile roads between

the important centers has been of great commerical importance to
French Morocco and has played a large part in the development of the
present well-developed bus services covering the entire country.
Of the 4,500 motor busses and trucks in service in Morocco on
January 1, 1930, fully two-thirds were used for passenger or combina
tion freight and passenger transportation. In 1928 and 1929 there was
a considerable increase in the extent of communication by motor bus,
particularly in the light-bus traffic. The main cities have been con
7
nected by an efficient bus service for a number of years, and the

development in recent years has been more pronounced in services
between small centers and as feeders to the main lines. The Com
pagnie Générale de Transports et Tourisme au Maroc, commonly
called the C. T. M. Line, has a fleet of 250 busses, chiefly Panhards,
which cover the entire country. This large and well-organized service
is subsidized by the protectorate government for carrying mail. There
are a few other medium-sized companies operating in various dis
tricts, but none that cover the entire country as does the C. T. M.
In addition, there are a large number of small lines employing light
American trucks which are being utilized between small towns by
native owners for communication between different markets and are
replacing the traditional donkey and camel, which up to a few years
ago was the only method of transportation available. These busses,
loaded to their utmost capacity, are equipped with wooden bodies
and collapsible benches and are used for both freight and passengers.
The attitude of the general public toward bus operation is most
favorable, and the use of these vehicles is widespread, even in those
sections where the narrow and broad gage railways are in operation.
All the principal cities and towns of the protectorate are now served
and connected by bus lines. There are lines radiating from Casa
blanca south along the coast to Mazagan, Safi, and Mogador; south
west to Marrakesh; north to Fedalah, Rabat, Kenitra, and Tangier;
and north and east to Rabat, Meknes, Fez, Taza, Guerciſ, Oudjda,
and from there into Algerian territory to Oran. From Mogador, Safi,
and Mazagan lines run to Marrakesh; from Marrakesh there is a
line to Cued Zem and Tadla; between Casablanca, Rabat, and Kenitra
there are various local services.
There are at least a dozen companies centering their activities at
Casablanca for the transportation of passengers to Rabat, Marra
kesh, Mazagan, Safi, and Mogador. Passengers are taken to Marra
kesh twice a day. Rabat, being the capital of the protectorate, is the
most favored, the number of trips in each direction (to and from Casa
blanca) ranging from 2 by small companies to 15 by the larger com
panies. Practically every car is filled to capacity on all routes, except
occasionally on those to the south of Casablanca along the sea coast,
especially south of Mazagan.
The C. T. M. Line does not use any American busses in its service;
their equipment consisting chiefly of Panhard and Saurer busses. The
second largest transport company in Morocco uses Minerva busses
exclusively, while some of the others use Panhard, Rochet-Schneider,
and a popular light American truck. The latter is used chiefly on
secondary and feeder lines.
None of the cities in French Morocco have electric street railways,
and only in Casablanca, Fez, and Marrakesh are there city bus servi
ices. The narrowness of the streets in the native quarters and the small
size of the European sections of cities other than those mentioned
above make such a service impracticable.
The large type of motor bus used in French Morocco is customarily
built on Panhard-Levassor chassis of 16 and 20 horsepower, which
are the types adopted by the C. T. M. This type of bus has also
been adopted by some private owners, while others are, in some
instances, employing Minerva chassis with satisfactory results. The
104537–30—2
8
smaller busses, which find a profitable business in supplementing the

large main lines or are used for short local runs, are usually built on
American chassis. There are a few Citroen and Renault vehicles in
this business, but they are in a great minority, and bodies are built
locally in order to avoid the heavy freight charges. Several local
firms specialize in the building of bus bodies.
Import figures show that the imports of chassis to be equipped with
locally built bodies have expanded in proportion to those of passenger
cars, and in the light models American models are easily the most
important. It will be difficult, however, for heavier American chassis
to compete in price with the French makes.
MOTOR-VEHICLE REGISTRATIONS
Official statistics on registrations of motor vehicles in Morocco

show cumulative totals and do not account for cars no longer in
operation. According to the best estimate available, however, there
were about 12,000 automobiles in use in French Morocco at the begin
ning of 1929 and about 15,500 at the end of that year.
It is estimated that about 7,000 passenger cars and 1,700 trucks
were in circulation during 1927. In 1928, 9,344 motor vehicles paid
the circulation tax, to which must be added the Government cars
not paying the tax and the country vehicles not attached to any
municipality registrations. The 1928 figures in detail are as follows:
Passenger cars-------. -- - - - - - 7, 650 | Military and governmental cars
Busses--------------------- 332 (estimate).---------------- 1,500
Heavy trucks- - - - - - - - - - - - - - - 710 | Country vehicles not paying
Light trucks- - - - - - - - - - - - - - - 952 tax (estimate) -- - - - - - - - - - - 750
Total registered - - - - - - - 9, 644 Total vehicles- - - - - - - - - 11,894
Approximately one-third of the automobiles in French Morocco

are in the Casablanca district, with Rabat, Fez, and Meknes next in
importance as to the total number of vehicles registered. The fol
lowing table shows the relative importance of the motor-car market
in various municipalities, but is not complete, inasmuch as vehicles
not paying tax are not included. Some of the cars listed are in
rural districts although included in the towns, while another 750
units in more remote parts of the country are not included at all.
AUTOMobiLEs PAYING CIRCULATION TAX IN FRENch MoRocco
1927 | 1928
Municipality i
Passenger
ger ---
... '
Heavy ity
Light | Paºger Heavy ---
Light
-
ºrs”. Busses truck; tıºks | cars Busses truck; trººs

-- - - - - - -- -- - - - - - -i - - - --|-- ---
Azemmour-- 6 | 17 ---------- 9 | 9 32 ---------- 15

Casablanca-- 2, 447 89 210 224 3,786 130 305 333
Fez--------- 486 8 49 19 789 13 74 29
Fedahla----------------------------------------------------- 27 -------------------- 5
Kenitra-------------- 193 14 16 18 249 13 14 24
Marrakesh-- 403 Il 23 105 406 20 35 138
Mazagan- 76 3 9 200 4 28 16
Meknes 457 19 65 73 598 35 76 120
Mogado 72 --------- 26 23 75 l---------- 36 25
()udjda--- - 230 11 39 41 271 17 7 50
Ouezzan-----------...- 11 3 ---------- 2 42 | tº 1---------- 8
- - 812 ---------- 42 84
189 45 21 8
47 * -- ------- 28
12 ------------------------------
63 3 8 44
75 9 1 25
7,650 332 710 952

9
MOTOR WEHICLE IMPORTS
Imports of passenger cars and trucks into Morocco have been

steadily increasing since 1925, particularly during 1928 and 1929.
The majority are of French origin, but the American percentage of the
total has been gradually growing, amounting to 26 per cent of the
total imports in 1925, 32 per cent in 1928, and 42 per cent in 1929.
Taking the figures for 1928 as an example, 2,976 cars and trucks
were imported from France, 1,550 from the United States, 300 from
Italy, and 74 from all other countries, a total of 4,900 units.
French Moroccan import figures do not differentiate between the
various types of vehicles, but contain two classifications, complete
automobiles and chassis. For practical purposes, however, the first
of these can be considered as passenger cars and the second as trucks
and busses. The following table shows imports of motor vehicles
into Morocco from 1925 to 1929 by countries of origin:
IMPORTs of CARS AND CHASSIS INTO FRENCH MoRocco
|
º
Year and country of origin | automo- | Chassis Year and country of origin
| Complete
automo- | Chassis
l biles | bileS
- - - - - -----------
| –-
| 1928. i
- France-------------------- | 2,648 328

England- - 14 , 7
- Spain---- 1 ----------
Belgium-- 33 || 10
Italy----------- 283 17
- | United States 951 509
Total------------------ 3,930 970
| 1929: -- -
France------------------- 2,792
- 296
England.-------- | 28 42
Germany------- 70 19
Spain--------------------- 2 ----------
Belgium-- 47 | 30
- - - - - - - 338 9
United States- 1,670 1. 0.58
Total.------------------- 4, 947 1,454
A rapid expansion of the motor-vehicle market took place in the

early part of 1929. Owing to the very poor crop conditions in the
latter half of that year, there was a decided decline in car and truck
sales; nevertheless, the total for the entire year increased over that
for 1928 by about 31 per cent. -
. The value of merchandise for the application of the customs tariff

is estimated in the Bureau of Customs from the commercial invoices
plus all charges to dock at Casablanca. For the purpose of simpli
fication and to obviate any discussion between the customs and im
porters as to the dutiable value, an arrangement has been made
between the importers and the “Commission des Valeurs en Douane”
fixing a definite value on each model, based on the retail price less
commission, discounts, etc. This system seems to work out to the
10
satisfaction of the parties concerned. No consular documents are

necessary on direct shipments, but commercial invoices should
accompany all shipments.
REGULATIONS AND TAXATION
Every car must be equipped with two brake systems, independently

operated and controlled and sufficiently powerful to stop a car on the
most abrupt incline. One of the systems must operate directly on
the wheels or on the drums immediately connected therewith. This
is the same rule as is applied in France.
Dazzling lights are prohibited and parking lights are required.
Heavy automobiles, such as trucks and busses, must be provided
with rear-view mirrors of a type accepted by the administration of
public works and so adjusted as to permit the driver to see easily the
vehicle about to overtake him.
There is a free circulation of motor vehicles between the three
different, zones of Morocco, and the regulations and taxation are
substantially identical throughout the country. The regulations and
taxes given in this digest are those promulgated in the zone of the
French protectorate of Morocco, and they seem to offer no impediment
to the sale of motor vehicles. The following scale of taxation on
motor vehicles is that in force in the city of Casablanca. Passenger
cars are assessed on a basis of horsepower according to the French
formula, as follows:
Passenger cars: Francs per year
Up to 7 horsepower-------------. ------------------- 72
7 to 12 horsepower - - - - - - - - - - - - - - - - - - - - - - - - -
- - - -102- - - - -
13 to 16 horsepower--------------------------------- 152
17 to 23 horsepower------. -------------------------- 252
24 horsepower and over-------. - - - - - - - - - - - - - - - - - - - - - 502
Busses:
Under 16-seat capacity - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 302
Over 16-seat capacity-------------------------------- 402
Trucks:
Under 1,500 kilos----------------------------------- 102
1,500 to 3,000 kilos---------------------------------- 152
3,000 to 5,000 kilos------- - - - - - - - - - - - - - - - - - - - - - - - - - - - 202
Over 5,000 kilos------------ - - - --------------------- 302
Motor cycles------------------------------------------- 30
With side car--------------------------------------- 80
The permanent national license costs 100 francs.

DISTRIBUTION CENTERS
Practically all cars coming by water to French Morocco enter by

the port of Casablanca. From this city are supplied the entire
western and central sections of the country. Although the port has
warehouse facilities, they are not much used at present. Free storage
for 10 days is allowed on docks, and many crated cars are left there
for that period before delivery is taken by the various dealers. Ameri
can cars are usually taken off the boat by lighters, but most French
cars arrive uncrated and are landed directly on the dock. There are
only four berths, and these are reserved for liners on which most of the
French cars arrive. At the present time the few berths available are
used for the landing of passengers and the loading of certain cargoes,
but better loading and unloading facilities are being built, and it is
expected that in about two years the port will be able to handle all
11
incoming and outgoing freight direct from steamer to dock and from
dock to steamer.
Cars should enter by the port of Casablanca except for the eastern
strip of Morocco, of which Oudjda is the center. In this eastern
district motor vehicles pay only 5 per cent duty, and by bringing in
the cars from Oran, Algeria, a saving of 7% per cent is effected. If
these vehicles are later transferred to the western district they must
pay the additional duty. Furthermore, Oudjda is closer to Oran
than to Casablanca, and the country surrounding it is more closely
allied to Algeria from an economic standpoint than to Morocco. The
reason for the lower duty of the eastern districts is that this territory
is less developed than the rest of the country. Later the duty will be
7% per cent, then 12% per cent, the same as the rest of the country.
Casablanca is the most important distribution center of the
country, followed by Fez, Meknes, and Marrakesh, and for adequate
sales distribution dealers should be placed in these cities at least.
Cities of secondary importance in the motor-vehicle trade are Rabat,
Kenitra, Mazagan, Safi, Mogador, and Agadir. The southern part
of the country is much poorer economically and is not very important
at present as a car market, its population being made up chiefly of
seminomadic tribes.
Factory supervision.—The question of factory supervision depends
largely upon the size of the company and the volume of business
done, not only in Morocco but in the balance of north Africa as
well. An ideal arrangement would be for a factory representative
with headquarters in Algiers to cover Morocco together with Algeria
and Tunisia; but if the total volume of business does not warrant
the keeping of a man in that territory all the time, it can be most
conveniently handled from Paris by a factory representative attached
to the European organization. If, however, a factory representative
is appointed to cover the north African district, it is considered
advisable that he be responsible direct to American headquarters.
MARKET SURVEY
Although the total number of automobiles in circulation has

grown gradually from year to year since 1920, the ratio of yearly
increase over the preceding year, based on the estimates of total
cars in circulation, has not been so rapid as might be expected.
Consideration must be given, however, to the fact that the life of
a car in Morocco is, on an average, not as long as in many other
countries, averaging about four years for passenger cars and three
years for trucks. The wide distances to be traversed, the great
need for motor-vehicle transportation, and the absence of adequate
railway service have put a particular strain on the vehicles. The
main roads are in excellent condition, wide and with long stretches
9f straight road—a speeder's paradise. Most vehicles are over
loaded, and it is estimated that the average passenger car requires
9ne complete set of tires per year, while trucks and busses require
from two and one-half to three sets. The chief reasons for this
short life are the hard wear and the extreme heat in summer.
PASSENGER CARS
The market for passenger cars in Morocco has shown improvement

each year since 1935, with 1928 and the first six months of 1929 stand
12
ing out particularly as high points in sales. In the early part of 1928
dealers were overstocked, but through favorable economic conditions
and good crop prospects, the stocks were rapidly disposed of and sales
were more active than they had been for some time. Throughout
1928 a great increase in imports was registered, and the sale of cars
progressed rapidly. The best seller is the low-price vehicle, although
sales of comparatively high-price cars (from $1,500 to $2,000) were
astonishingly large, taking into consideration the financial status of
the population and the small number of potential purchasers for these
vehicles. The chief competition to American cars comes from the
low-priced French makes, such as Citroen and Renault, and from the
Italian Fiat. Citroen naturally takes the lead, but by aggressive
salesmanship and liberal credits Renault ran close to its competitor
at the close of 1928. In that year the taxicab market was given par
ticular attention for the first time, and with the introduction of taxi
cabs in the large cities a determined effort was made by French manu
facturers, especially Citroen and Renault, to dominate this market,
and the first fleet of cabs consisted chiefly of these makes. Since then
Some American makes have begun to enter this part of the market,
and it is probable that many French cabs will be replaced by American
vehicles when the former wear out.
Up to a year or so ago very little attempt was made to develop
a market in the interior, dealers concentrating their sales in the larger
cities, principally Casablanca. With the gradual saturation of this
market, however, more effort has been made to sell cars in the smaller
towns and rural districts. Because of the low purchasing power of
most of the natives, efforts had to be centered on Europeans, Jews,
and the small caid, or chieftain. Among the Arabs, the latter group
was practically the only one wealthy enough to buy motor cars.
With the gradual economic improvement of many of the Arabs in
agricultural pursuits, the native element will become increasingly
important, although limited to the caids and the large landholders as
long as the present feudal system continues. As European penetra
tion continues, there will be a slow tendency away from this system,
and, as in Algeria, the natives will gradually become more European
ized. The Jewish population also contains an important percentage
of potential buyers, but they are likely to buy low-priced cars when
they could very easily afford the medium or high-priced makes.
Another factor militating against the full development of motor
vehicle markets in urban centers is the fact that most Arab car owners
have no place in which to keep their cars in the native walled city,
or “ville indigène,” common to every Moslem city of any size. In
such towns as the native centers of Fez and Marrakesh where, in the
narrow, winding, hilly streets, only a donkey or camel can make
progress, it is entirely out of the question for cars to be driven, and
owners must park them outside the walled limits of the cities in which
they reside. Nevertheless, it is the opinion of some dealers that the
importance of the native market has been underestimated and that
the biggest future development will be there. These dealers state,
however, that more publicity in Arabic would be helpful, and that
high-class Moorish salesmen must be employed to sell among this class.
Another feature of the market—and i. is particularly true of
European purchasers—is that many people buy cars above their means.
Credits have been comparatively easy so far; and although it is cheaper
13
to run a car in Morocco than in Europe and taxes are more reasonable,
it is believed that business would be on a sounder basis if these buyers
kept within the price class they can afford.
USED CAIRS
The used-car problem is considered one of the three principal evils

of the local motor-vehicle trade, the other two being the entirely
inadequate service facilities and the unsatisfactory credit situation.
There is no standard practice in the marketing of used cars in
Morocco, and competition is so keen that too high values are often
given on trade-ins. With the exception of one or two large American
companies, no set price on used cars is imposed, and dealers usually
increase the price to allow for additional trade-ins. The lack of
adequate spare parts has a strong effect upon the used-car business,
particularly for American makes, as parts for most French cars are
much more easily available. For this reason French cars are in a
much more favorable position in the used-car market than the
American makes.
With few exceptions, dealers are well stocked with used cars,
disposal of which is extremely difficult, owing to the price at which
they are purchased. It is estimated that there are currently about
500 used cars on the Casablanca market, which is, of course, the largest
in Morocco and may be taken as two-thirds of the whole stock of
these vehicles in this country. Purchasers of new cars usually insist
that the dealer take over their old car, and go from dealer to dealer
to ascertain which will pay the highest price, then make their decision
on that basis as to the new car to be purchased. As a result, many
dealers bid prohibitive prices for used cars in order to get a sale for
a new one, with the consequence that they usually have a large stock
of secondhand models on hand.
TRUCKS
The market for trucks in Morocco is particularly encouraging, owing

to the fact that a large amount of the total freight is carried by these
vehicles. Sales up to the latter half of 1929 were good, but with the
poor crops bringing on a general depression, truck sales were affected
along with those of passenger cars.
In spite of the comparatively good market for trucks, the use of
these vehicles has not developed to its utlmate extent by any means,
and donkeys are still depended upon as the chief means of transporta
tion by most natives, particularly in the interior. The American
trucks sold so far have been principally 1-ton models, but there is an
increasing demand for the heavier units. Most of the heavier duty
trucks sold are Berliet, Panhard-Levassor, Rochet-Schneider, and
Saurer. American chassis are mostly employed for light delivery
º although Citroen, Renault, and Fiat have
S8.16S.
made a number of
A new market has been created for the light truck, which is almost
entirely in the hands of American makers. This market is furnished
by the native Arab owning and operating one or two small trucks or
busses plying between various country markets not served by regular
bus lines. This method of locomotion is gradually superseding the
old foot or donkey path methods. The heavy-duty truck is still
principally a monopoly of the French manufacturers, and the Berliet
14
5-ton model, loading 7 or even 7% tons and retailing at 66,000 francs,

has found no serious competitor.
There is a market for American 3-ton to 3%-ton trucks—advertised
as being of that capacity and not as 5-ton models. Inasmuch as all
trucks are overloaded, if the 3%-ton truck is advertised as a 5-ton
truck, such overloading will naturally not have any beneficial results
on performance or future repeat orders. It is the opinion of most
dealers that the market for trucks in general will continue to hold
steady, even if passenger-car sales decline.
The next question is that of service, and this is the most important
factor retarding American motor truck sales. In the matter of truck
transportation perhaps 25 per cent of the roads that commercial
vehicles must pass over are in a poor state of repair, and the strain on
the truck is extreme. As a consequence, there is a great deal of
breakage of parts, and the American truck is often held up for a long
time awaiting repairs, while French manufacturers keep adequate
part stocks in Casablanca. The problem of spare parts should not be
considered or compared with the similar problem in many other
markets or in the United States, because of the fact that parts which
ordinarily never wear out elsewhere are sometimes the first to break
under the stress of Moroccan conditions. Consequently the parts
problem should be studied entirely from the local angle.
The question of spare parts is perhaps the most serious that local
dealers must face. Many of them have an entirely inadequate stock
for ordinary needs, while in the case of others the company requires
them to order a certain amount. Of the latter practice many dealers
complain that the company forces them to overstock, but this criticism
is doubtless unjustified in most cases, as many of the dealers do not
know how to order, and when they lose money it is chiefly because
they have ordered too many units of certain parts and too few of some
others. This condition is particularly true in the case of the smaller
dealers, but the spare-parts problem could be remedied if factory
supervisors would give it closer attention and after a study of condi
tions would show dealers just what spare parts are needed and in
what quantities.
- BODY BUILDING
A few of the passenger-car and all of the truck and bus bodies are
built locally. There are three or four important body builders in
Casablanca as well as a number of smaller concerns engaged in
this work. Some of the dealers in the interior have experienced
some difficulty in getting delivery of their orders in less than four
to six months, and as a result one or two plants have sprung up in
Fez to supply the demand. Rabat has one plant, also. Although
the finish is not considered as good as that of imported bodies, the
locally built units are well adapted to the conditions of the country,
and their lower price is an important factor. Practically all trucks
and busses circulating in Morocco are loaded to their extreme capacity
with passengers, freight, general merchandise, and market produce,
which calls for especially strong bodies. Practically all bus bodies
have iron bars or a “fence” about 3 feet above the top of the vehicle,
to provide room for this ton or more of freight to be piled on the
I'OOI.
The most important body builder in Casablanca, the Générale

Automobile Marocaine, has a capacity of 150 bodies a month and,
-
15
when working at capacity, employes about 250 workmen and 18.

office employees. Ordinarily, however, its force consists of about
150 workmen and 15 clerks.
I’AirTS AND ACCESSO itſ ES
The market for American parts and accessories is good despite

the keen competition in the latter from French and other European
countries. American accessories are generally somewhat higher in
price, but they find considerable favor. The market for replacement
parts is limited almost entirely to the parts stocked by dealers of
each principal make of car and supplied by the manufacturers, and
dealers usually purchase only the spare parts manufactured by the
firms whose cars they represent.
The garage business is not yet organized sufficiently, nor are there
many service stations, and it is only within the last two or three
years that filling stations have been installed by the different com
panies importing gasoline.
GARAGE AND SERVICE EQUIPMENT
There are perhaps 60 to 70 so-called garages in all Morocco, of

which only 6 or 8 come anywhere near being adequate service
stations. With one or two exceptions, all of these are operated by
dealers of American cars. Real service facilities are practically
unheard of, and only recently has there been a tendency to install
any kind of efficient repairing equipment.
Most of the mechanics have been trained in the old school and are
reluctant to try out modern garage equipment. These mechanics are
practically all Europeans, owing to the fact that the native Arabs
are not at all mechanically bent. Any intelligent sales campaign
for the introduction or extension of American garage equipment must
include a great deal of pioneering work. A market for this equip
ment must be created, and the best way of selling it is to place some
of the more needed and representative articles on a truck and to
demonstrate them to dealers all over the country. Some garage
equipment has been sold recently, but the total volume of business
does not amount to large proportions.
The best market at present is for general garage tools, hoists, valve
grinders, etc. Hydraulic machinery, car-washing machines, and
other comparatively expensive equipment would be difficult to sell
because garage owners, in general, have but a small capital, and
natives can be hired cheaply to wash the cars. Firms handling these
articles must have adequate financial means, as they are obliged to
extend credit to their customers, terms being usually half cash and
balance payable within six months. With the growing competition
it is possible that more lenient terms will have to be made.
uotations to dealers, should be made c. i. f. Casablanca, cash
against documents until fully established connections have been
made, when a certain amount of credit would probably assist the
dealers to increase their sales.
MOTOR CYCLES
Owing to their high prices, and also to the fact that no serious
effort has been made by American companies to develop this market,
104537–30–3
16
sales of the American-made motor cycles are practically negligible.

The American product is generally considered too heavy a type and
can hardly undersell some of the cheaper types of French manufacture.
Dealers who have been approached as possible agents for American
motor cycles have generally declined because of the lack of demand
and because of their belief that a demand can not be created.
There are no statistics available giving particulars of motor cycles
imported into Morocco, as customs figures are based upon weight
and include both motor cycles and accessories. French and Belgian
makes are the most popular, but a few British makes, such as the
Triumph and the Raleigh, also find a small market.
According to the best estimates available, there were about 1,800
motor cycles in operation in Morocco at the beginning of 1930.
Registration statistics show that between the period of October 1,
1927, to March 31, 1928, 129 motor cycles were registered, whereas
from April 1 to June 30, 1928, 161 were registered, and from July 1
to September 30, 1928, 159 were registered, the largest proportion
of which were of French manufacture.
The incréase in registrations noted above is, of course, primarily
due to the season of the year, sales being more active during the
spring and summer months. However, some of the increase may be
attributed to the popularity of the motor cycle among the younger
members of the European colony; but as motor cycles have not yet
been used to any extent by native classes, it may be foreseen that
within a few years the younger natives will readily take to this
means of communication. Dealers in motor cycles are organizing
races and other sporting events with considerable success in order to
interest the public.
The popular types are chiefly those of the 3% to 5 horsepower solo
class. Side cars are practically unknown, owing to the fact that a
motor cycle with a side car costs approximately as much as a small
passenger car.
The motor-cycle trade in French Morocco is divided among French,
British, and Belgian makes. At present only two American makes
have been noticed on the market, and these in small quantities.
Of a total registration of 449 units from October 1, 1927, to Sep
tember 30, 1928, 163 units were French, 79 British, and 81 Belgian.
The principal makes registered were:
FRIENCH BRITISH | BELGIAN
Monet-Goyon - - - - - - - 74 Triumph------------ 25 F. N
Terrot-------------- 24 Raleigh------------- 21 Gilette
Thomann----------- 20 | B. S.A.------------- 17 | Sarolea
Gnome & Rhone----- 29 A. J. S.------------- 8
Moto Rhonyx - - - - - - - 16 || Ariel - - ------------- 8
Motor cycles are sold in French Morocco by dealers handling

motor cycles and bicycles and not by the automobile dealers.
COMMERCIAL DATA
MARKET PREFERENCES
Standard-model cars and trucks can be sold in Morocco without

any particular changes. Bright colors are very popular, and the
preference toward 7-passenger cars rather than cars of less carrying
-
-
17
capacity is much greater than in most markets. Moorish families

are often very large, including several wives and numerous children.
To satisfy the demands of the large families, 7-passenger vehicles are
particularly favored where they can be afforded. The question of
speed is important; and inasmuch as most main roads are excellent
and there is comparatively little traffic, throttles are usually kept
wide open in order to cover the long distances in the shortest possible
time. The element of speed is required even in trucks. Another
desirable feature in motor-truck design is a short turning radius,
because of the many hairpin curves in the southern and eastern moun
tainous districts.
Up to a few years ago most cars consisted of open models, but follow
ing the lead of most other world markets, perhaps 80 to 85 per cent
of the motor vehicles sold to-day are closed models.
AD VERTISING
Very little advertising of automotive products is done in Morocco,

because it has not heretofore been considered necessary. Up to the
present Morocco has been a seller's market, but with the increasing
ratio of motor vehicles to population it will be necessary to devote
much greater attention to this important phase in marketing.
It may be that the logical medium in future advertising policies is
billboard or other outdoor advertising, which so far has been very
little developed. There are a number of good daily papers in French
that reach the European population, but it is difficult to plan an
efficient program to reach the ever-increasing market among the
native buyers, partly owing to the fact that the newspapers printed
in Arabic have a very small circulation and partly because many
natives, even in the upper classes, do not know how to read.
INSTALLMENT SALES
The element of credit plays a larger rôle in business in Morocco than

in many other countries. The entire district is newly developed, and
most commodities are sold on liberal credit terms. Practically 90
per cent of all automobiles in Morocco, both new and secondhand, are
sold on a deferred-payment basis. No organized system for financing
motor-car sales exists, and it is customary for dealers to carry the
paper of their clients. The usual down payment is 25 to 33 per cent
of the value on all classes of cars, with the balance spread over 12 to
18 monthly payments, but drafts are often renewed, and it is not
uncommon to extend payments to 24 months. The country is
chiefly dependent upon its agriculture, and whenever there is a poor
crop dealers find themselves forced to extend credit over an additional
period. It also often happens that the cash-down payment is reduced
to as low as 18 per cent because of the keen competition among dealers.
Nevertheless, repossessions have been comparatively small, in spite
of frequent extensions and the loose credit practices.
Banks discount automotive paper at 6 or 7 per cent in very much
the same way as other commercial paper, but as a result of the poor
crop in 1929 they have begun to tighten up on this business.
SPANISH MOROCCO AND TANGIER
The international zone of Morocco is so closely linked, geographi

cally and economically, with the Spanish zone that any study of the
automotive market of these two districts must necessarily be a join
one. The city of Tangier has a population of about 60,000, and the
total area of the international zone does not exceed 140 square miles.
The Spanish protectorate consists of the northern strip of Morocco,
about 60 miles wide, extending from the Atlantic east about 250 miles
along the Mediterranean, its total area being 18,360 square miles.
The topography of the entire district is mountainous, and the main
occupation consists of stock raising and a little diversified agriculture.
Although the district has a wealth of natural resources in mines, it is
the least developed of all Morocco, and its low purchasing power and
warfare in the Rif for a number of years up to 1927 has retarded
general economic development considerably.
There are only about 1,500 automobiles in circulation in the entire
district, of which approximately 50% are registered in Tangier and
1,000 in Spanish Morocco. The cars ('s stined for the international
zone are usually shipped direct to Tangier, while those for Spanish
Morocco enter by the free ports of Melilla and Ceuta, both of which
are not integral parts of the Sultanate, having been in the possession
of Spain for several hundred years. Ceuta is more important than
Melilla, because the present highway system connects it with Tetuan,
the capital, and other cities in the western part.
The population of Spanish Morocco is estimated at about 800,000
and that of the international zone at 75,000. There are very few
Europeans outside of the more important cities, and the native
inhabitants are principally of the Berber race, speaking various
dialects of Arabic. Spanish is the commercial language of the
district, but French and English are also used in Tangier. The
Spanish peseta is the legal monetary unit in Spanish Morocco, while
in the international zone both the peseta and the Moroccan franc
(on a par with the French franc) are in common use. Because of the
international character of Tangier, British, Italian, and American
currency is freely accepted, and there is also a British and French
post office.
REGISTRATION OF MOTOR WEHICLES
As in French Morocco, motor-vehicle registration statistics in

Tangier and Spanish Morocco are cumulative, and it may be safely
estimated that 50 per cent of the vehicles included in such registra
tions have been scrapped or taken out of the district by their owners.
The latter is particularly true of the international zone, where the
foreign population is largely a floating element. There are also a
number of vehicles registered in the French zone but used chiefly in
the Spanish protectorate.
The following table shows the number of motor vehicles in circula
tion in Tangier and Spanish Morocco on January 1, 1929, according
to official registration statistics:
19
REGISTRATION OF AUTOMOBILES IN SPANISH MoRocco AND TANGIER
Type American | European || Total
TANGIER
286 498
50 74
137 3.13
18 20
72 72
563 977
SPANISH ZONE
Passenger cars and busses--------------------------------------------- 356 .491 847

Trucks--------------------------------------------------------------- 400 244 644
Motorcycles-------------------------------------------------------- 1 32 33
Total----------------------------------------------------------- | 757 767 1, 524
The chief value of the above table is as a comparison between the

number of American and European cars in circulation. According to
these figures, 42 per cent of the total number of motor vehicles regis
tered in Tangier and almost 50 per cent of the total in Spanish
Morocco were of American origin.
As has already been stated, the above registration figures are cumu
lative, but according to the best estimates available, about 500 of
the automobiles registered in Tangier are still in circulation, and about
1,000 in the Spanish zone still operate. While no figures on the
number of vehicles paying circulation taxes are available for Spanish
Morocco, the following number of cars paid circulation taxation in
Tangier in 1929:
Passenger cars------------------------------------------ 206
Taxis up to 6 seats---------------------------------- - - - - 89
Busses:
From 6 to 12 seats---------------------------------- 34
Over 12 seats--------------------------------------- 29
Light trucks up to 750 kilos------------------------------ 2
Trucks and tractors from 750 kilos to 3 metric tons_ _ _ _ _ _ _ _ _ 116
Trucks and tractors above 3 tons - - - - - - - - ----------------- 22
Trailers------------------------------------------------ 2
Total.-------------------------------------------- 500
IMPORTS OF MOTOR WEHICLES
Imports of motor vehicles into Tangier during 1928, the latest

figures available, amounted to 100 complete automobiles and 93
chassis (probably all trucks). Owing to a different classification of
customs statistics, similar figures for Spanish Morocco are not avail
able. The latest Spanish Moroccan figures show that 313,117 kilos
of automobiles, valued at 963,498 pesetas (about $160,600), were
imported into the Spanish zone in 1926.
The following table shows the number of cars and chassis imported
into the international zone yearly from 1924 to 1928:
IMPORTs of Motor VEHICLES INTO TANGIER
-
Year
Complete
autºmºbiles w
Chassis >
Year |º. Complete | rºboss;
Chassis
1924 - -
1925- -
42
25
sº tºº........... -
36 || 1928------------------------ i
74
100
35
93
1926... 59 #| |
20
HIGHWAYS
The highways that exist in Spanish Morocco are fairly good, as

many of them had been planned and built for militäry expediency.
Lately the Spanish Government has been spending considerable
money in public works in this territory, and a large proportion has
been used in the construction of much-needed highways. The west
ern part of the Spanish zone has a network that closely approximates
the more urgent needs of the territory, but in the eastern end the
roads are still totally insufficient. The cities of Ceuta and Melilla,
two important seaports, at opposite ends of the commercial part of
the Spanish zone, are connected neither by highways nor by railways,
and the only means of transportation between these two points is by
water. However, the construction of a road which will connect these
cities has been started, but it will be some time before the work can
be completed.
The international zone has about 42 kilometers of highways, all
macadam and serviceable for automobile traffic throughout the year.
There are also about 50 kilometers of municipal roads, of which 20 kilo
meters are dirt and 18 are macadamized. According to the latest
statistics, the length of highways in Spanish Morocco is 1,654 kilo
meters, or about 1,025 miles. Of this total, approximately 900 kilo
meters consist of earth and gravel roads, 550 macadam, and 200
asphalt.
A special appropriation of 10,000,000 pesetas was granted in May,
1928, by the Spanish War Department to the army of occupation for
the construction of permanent barracks and for roads of purely mili
tary character and their maintenance. Of this amount it is estimated
that about 1,000,000 pesetas was spent in 1929 for the construction
and maintenance of these roads.
The annual expenditure for all roads maintained is about 3,500,000
pesetas. In June 1, 1928, a project was approved for the construction
of a highway from Tetuan to Melilla, a distance of about 270 miles,
and an appropriation of 31,000,000 pesetas was allocated from an
80-year 5 per cent loan of 82,000,000 pesetas made in 1928 by Spain
to the Shereeſian authorities for public works. Contracts have been
made for the construction of the contral section of 100 miles in four
years.
Existing roads in the Spanish zone are open to traffic during the
entire year, except in a portion of the central part, where they are
impassable during the rainy season.
MOTOR-BUS TRANSPORTATION
Since rail transportation facilities are inadequate, motor busses

are the only means of conveyance available to the public in many
districts of Spanish Morocco. The only important bus line in the
eastern part is between Melilla and Oudjda, together with a few
short local services, but in the more developed western districts two
comparatively large companies operate between all the important
towns. The following towns are connected by daily motor bus
communication: Ceuta, Tetuan, and Tangier; Tangier and Larache,
via Arzila; Ceuta and Larache, via Tetuan and Rgalia; Ceuta and
Xauen, via Tetuan; Tetuan, Bab, and Taza; Bab, Taza and Tangier,
via Tetuan; and Alcazar and Larache. -
21
The services between the towns noted above are frequent, and
between Tetuan and Ceuta and Tetuan and Tangier there are four
to eight busses daily in each direction.
Both the authorities and the public are favorably inclined toward
bus operation. Standard passenger cars and truck chassis are used
chiefly for busses, although there is some demand for the special-type
French chassis having a seating capacity of 25 passengers.
MARKET SURVEY
In view of the economic and highway conditions in this territory,

the development of motor transportation has been slow, and there is
little possibility at present for rapid or even moderate expansion.
The warfare during 1925 and 1926 prevented ordinary traffic and
normal economic expansion. These factors militated against the
sale of motor cars to civilians not only in the Spanish zone itself but
also in Tangier, which is surrounded by the Spanish zone except for
its harbor.
Since the suppression of the Riffian revolt and the initiation of a
program of public development by the Spanish authorities, the devel
opment of motor transportation has again assumed its normal slow
growth.
In order to determine market conditions in this district, it is neces
sary to take into account the fact that the demand for automobiles
is practically confined to Europeans, which constitute only a small
fraction of the population. The natives live under conditions which
are similiar to those of their ancestors, resist change, are indifferent
to modern ideas of comfort, and have a low purchasing power based
on American standards. Of the total automobile registration in the
Tangier zone in 1928, only 5 per cent belonged to Moorish owners.
Another factor which tends to hinder the sale of motor cars is the
inadequate highway system and the narrow streets in native towns.
In Tangier itself the native streets are usually too narrow and other
wise unfit for motor-vehicle transportation. Moreover there are
only two arteries leading from the city which offer any inducement to
motor travel, one leading to Tetuan and Ceuta and the other to Rabat
and Casablanca in the French zone, via Arzila and Larache. This is
in sharp contrast to the French zone, where the system of highways
comprises several thousand miles of first and second class roads.
The used-car problem is practically nonexistent. Motor vehicles
are given extremely hard wear, and owners use them for a few years
until they are taken from circulation.
The principal market is for trucks from 2 to 4 tons capacity and for
5-passenger touring cars in the medium and low price classes. The
Spanish zone is very mountainous, and a short turning radius, particu
larly for trucks, is desirous.
American motor cars and trucks are popular, but are meeting with
strenuous competition from French makes. An important considera
tion is the fact that American motor vehicles usually consume more
gasoline than their foreign competitors. There is also some Italian
competition (Fiat), but this is gradually falling off.
There is some local construction of truck and bus bodies, but many
of these are shipped in from Casablanca. Stocks and spare parts
are limited to the quantities necessary to make repairs, without
great stress being laid upon maintenance of a service standard. The
22
market is so small that no attempt has been made for elaborate show
rooms, and two or three cars or trucks is usually the limit of the cur
rent stock. The question of stock and spare parts is a difficult one
because of the isolation of the territory.
Stocks may be carried in Malaga or Algeciras in Spain, in Gibraltar,
or in Tangier. Because of the isolation of Melilla from Tangier, it
is much easier and quicker to send spare parts to the former port
from Malaga. COMMERCIAL DATA
ADVERTISING
There are very few newspapers either in Arabic or in European

languages in circulation in Spanish Morocco and Tangier, and other
advertising has been limited to the casual billboard variety.
INST ALLMENT SELLING
Business in automobiles is usually conducted on the basis of cash

against documents, but the services of finance companies are utilized
in a few cases. It is the custom of most dealers to carry the paper of
the customer, and terms are sometimes offered at only 5 per cent of
the value as down payment with the balance spread over 18 months.
Banks discount 4-months paper at a time, with renewal notices
being arranged by reputable persons with sufficient credit standing.
DEVELOPMENT OF FUTURE MARKET
With the development of the country, the automotive market will

probably improve somewhat in the future, but its growth will be very
slow. Any increase of purchasing power rests on the further economic
development of the Rif. Further agricultural expansion is problem
atical on account of the barrenness of the country, the biggest possibil
it; being the development of mining, which is dependent upon the
introduction of foreign capital. There is a need of concentrated
sales efforts, consistency of program, and education to the value of
modernization of merchandising methods. The greatest problem is
one of education with the object of demonstrating the value of
American motor vehicles by reason of their longer life and in general
greater service and economy per investment unit. Retail selling
methods could also be improved, as salesmen are not inclined to
know their product perfectly, but depend upon a flow of oratory to
convince their prospects. There is no great energy expended in
covering the prospects, and records of calls are not properly kept.
Instead of salesmen soliciting business, it is more customary for local
dealers to wait until a prospective customer calls.
ALGERIA .
Somewhat smaller in area than Morocco, and under French juris

diction since 1830, Algeria is considerably more developed and has
more than 30,000 motor vehicles in use. Unlike Morocco, it is a col
ony of France, within the French customs union, and consequently
presents the same high-tariff wall to American cars as does the mother
country.
Algeria proper, consisting of a comparatively narrow strip extend
ing more than 600 miles along the coast of the Mediterranean, has an
23
area of about 80,000 square miles, to which must be added the South
Territories comprising another 142,000 square miles, a total of 222,000
square miles. According to the 1926 census, the population of
geria was 6,064,865, of which about 1,000,000 were Europeans, the
others consisting of Berbers and Arabs, together with several hundred
thousand Jews. A large proportion of these Jews, however, are more
Europeanized than those of Morocco, with a consequent higher
purchasing power. The country is divided into three Departments—
Algiers, Oran, and Constantine—named after the principal city in each
Department. These cities are the three main urban centers of the
country—Algiers with a population of 226,218, Oran with 150,301
inhabitants, and Constantine with 93,373.
Politically, Algeria is a part of France, whose language, tastes and
customs predominate among the Europeans and greatly influence the
natives; most of the Europeans in Algeria are French, but there are
also about 150,000 Spaniards and 40,000 Italians. The native Arabs
and Berbers are, of course, of the Moslem faith.
Agriculture predominates as the chief industry and is the principal
source of wealth. The principal products are wheat, barley, grapes
(for wine), olives, and oranges. Stock raising and mining are next in
importance. Agricultural products, wine, fresh fruit, vegetables,
dates, animal products, minerals (like iron ore, phosphates, zinc, and
lead), carpets, and olive oil make up the principal exports of the coun
try. About 76 per cent of Algerian foreign trade is with France,
4% per cent with French Morocco, 3 per cent with the United States,
and smaller amounts with Great Britain and Tunisia. Manufactured
goods comprise 70 per cent of the imports, and such items as cotton
goods, machinery, automobiles, and wearing apparel take the lead.
Other important imports are sugar, rubber, coffee, coal, and gasoline.
Petroleum products, machinery, and agricultural implements are
largely imported from the United States.
There are three main agricultural regions; the rich coastal district,
the plains in the interior districts, and the desert region. There are
numerous oases in the Algerian desert where the production of dates
is very important.
Purchasing power is very largely dependent upon crops. The poor
crop in Morocco in 1929 did not have its counterpart in Algeria, but
although the Algerian crops in that year were good, certain difficulties
arose in marketing them, which did not add to the general prosperity
of the country. Prices of these products were low, and the wine of
the country came into competition with the French product. Con
siderable money was tied up in crops as well as construction projects,
with the result that credit and money, which up to the middle of 1929
had been easy, tightened up considerably. Wheat is perhaps the
most important crop, taking the country as a whole, with wine grapes
next in importance, although in the Department of Algiers the growing
of grapes takes first rank. In the Department of Oran, wheat and
cereals are far in advance of other crops, while the Department of
Constantine is the poorest of the three from an economic standpoint.
The standard of living in Algeria is higher than in Morocco, and
the purchasing power, particularly of the natives, has been increasing
rapidly in the past few years. The European farmer is gradually
migrating to the city, being replaced by the natives. As an agricul
tural class, the Arabs and Berbers have been buying more and more
24
foreign machinery and tractors. The territory is, moreover, an

excellent market for agricultural implements, and for a number of
years it has been an important customer of American farm machinery.
Ocean transportation facilities.—An annual foreign trade of about
$212,000,000 (5,400,000,000 francs) is conducted by water and by the
railroads serving Algeria and connecting with Tunisia and Morocco,
and from Algiers and other ports 10 passenger vessels depart weekly
for Marseille, crossing the Mediterranean in about 26 hours. There
are also fairly frequent sailings to Spain, and one French line has a
diſcot passenger service to and from New York, while a Japanese
freight line affords direct communication between New York and Oran.
Algiers, the logical point of entry serving the main market in Algeria,
also has bonded-warehouse facilities for transshipment. Most of the
cars enter this territory through the port of Algiers, American cars
coming boxed and French cars unboxed. Unloading is done directly
on the wharves and not by lighter. Port facilities are being further
increased, and present plans call for an extension to be completed by
1934. Some automobiles are also entered by way of Oran, chiefly
for distribution in the Department of Oran and for transshipment
from its bonded warehouses to Oudjda and the eastern Morocco
district.
DISTRIBUTION OF AUTOMOTIVE PRODUCTS
The city of Algiers is the main distributing point for automobiles

and automotive products. With the distributor in this city, the more
important agentis should be located in Oran, Constantine, and Bone,
while less important agencies should be established in Setif, Sidi-bel
Abbes, Tlemcen, Orleansvilles, and Batna. In general, it would be
poor policy to give an agent in Oran or Constantine the franchise for
all of Algeria, inasmuch as Algiers has the largest companies, is
centrally situated, and in every other respect is better as a distributing
point. Nor is it considered good policy to give the territory of
Algeria to the distributor in Paris, who works this country through a
subagent. This policy, practiced by a few companies, has had poor re
sults, and the makes involved do not get their fair share of the market.
It is also not considered good policy to appoint three distributors, one
for each of the Departments, since the market for American cars is so
small that no strong company would accept such a franchise if it
were not given the opportunity to develop the entire country through
its own subdealer organizations.
IMPORT DUTIES AND INTERNAL TAXATION
As in France, the customs duties assessed on American passenger

cars, trucks, and parts imported into Algeria amount to 45 per cent
ad valorem, but, unlike France, no luxury tax is assessed. In order
to benefit by the minimum rate, American automobile products must
go forward direct or via a French port, for goods transshipped at
other ports are subject to the general rate of 180 per cent ad valorem.
Regulations for consular documents and fees are the same as for
France.
In arriving at a basis of duty assessment, the value to be declared
for the application of the customs tariff is the value of the merchan
dise in the place and at the time it is presented to the customs—
a value about equivalent to the value of similar merchandise in Algeria
less the import dutv.
25
Customs authorities have the right to value the car based on the
value of a “similar” French car. The latter system has been in force
for some time, and will probably not be changed as long as the present
ad valorem rates remain in effect. In the practical application of this
basis, the retail list price of a car is taken, minus the import duty,
minus an arbitrary figure of two-elevenths of the remainder, the
latter to account for the dealer's commission.
Taxation of cars after they have been entered into the country is
very reasonable, and not at all so drastic as in a number of Eurooean
countries. The circulation tax is insignificant, amounting to about
25 francs, or $1, a year. There is, however, a tax on tires and gasoline.
The import duty on tires amounts to 3 francs a kilo., and there is, in
addition, an internal tax on tires of 4 francs a kilo. Tires shipped into
Algeria usually have already paid the import duty in France, which
is, therefore, not reassessed, but the 4 francs internal tax can not be
paid until after the tires are entered into the country.
The import duty on gasoline is 17 francs per hectoliter (1 hectoliter
equals 26.4 gallons). An internal tax of 20 francs per hectoliter plus
a 5 francs per hectoliter surtax is collected. Briefly, the total amount
of import duty and tax on gasoline is the equivalent of roughly 5
cents per gallon. HIGHWAYS
The administration of highways in Algeria is modeled after the

French system, and, like France, its roads are subdivided into three
categories, national, departmental, and communal. Each of the
political parts into which the country is divided finances its own con
struction and repairing, but the Departments and communes receive
, a subsidy for some of their most-traveled roads from the central
Government. Money is voted from the general budget, but a large
part of the taxes on tires and gasoline is also used for the benefit of
highways.
The railway system of Algeria is much longer and better developed
than the railway system of Morocco, and highways in Algeria do not
constitute the only means of long-distance traveling as is the case in
large sections of its neighboring country to the west. Algeria has
3,325 miles of national roads, 41 miles of departmental, 6,066 of high
roads, 4,932 of by-roads, and 7,207 miles of country roads, making a
total mileage of 21,571. The roads, as a whole, are good, and the
network is fairly complete. Future efforts will in all probability be
largely concentrated on improvements and repairs. Particular atten
tion is now being paid to the matter of surfacing and the straightening
of some of the many hairpin turns to be found in the Atlas Mountain
Ranges. There is very little construction of new highways at present,
nor is there a great need for new routes to be laid out, with the excep
tion of the mountainous Kabylia district, where the natives are
clamoring for more new roads but where construction is very expensive
because of the topography of the country.
DEVELOPMENT OF MOTOR-BUS TRANSPORTATION
Motor-bus transportation has increased tremendously in Algeria

during the past few years, and has developed along three well-defined
lines—slow services for merchandise, “jitneys” carrying chiefly
natives and parcel freight, and large fast busses used exclusively for
passenger transportation. The lines are in the hands of a large num
26
ber of concerns and individuals and none of them cover the entire.
country or even a large part of the country, as is the case of the
C. T. M. in Morocco.
Although development in this field of transportation has been very
rapid, it is the opinion of some dealers that the number of these
vehicles now in circulation is only about 25 per cent of the number that
will eventually be employed.
The largest of the operating companies has a complete service in the
ºrhood
Inland.
of Algiers, but it does not extend a very great distance
Regular bus services have been maintained between the larger
cities, especially those that had inadequate railway connections, for
six or eight years, and a considerable number of these vehicles have
been operated for the steadily increasing tourist trade. All together,
* are about 160 different lines in operation, using close to 1,000
UlSSGS.
Most of the heavy busses in circulation are Berliet, Panhard
Levassor, and Rochet-Schneider, all French makes. The Panhard
Company enjoys a large share of the business, owing greatly to the
fact that this company has made a special chassis for the North
African market for the last 10 years, and for a number of years has
concentrated its sales efforts through a well-developed dealer organi
zation throughout North Africa. Practically no American busses in
this category have been sold, but a popular low-priced American
make is enjoying an increasing business in the lower-priced bus trade.
There is no outlet at present for the larger American busses, but 1
and 1% ton American truck chassis are in demand by individuals,
mostly farmers, who live from 50 to 75 miles from an important city
and who make a trip into town whenever they have collected a suffi-'
cient load of mixed freight and passengers.
Bus lines have sprung up almost everywhere and have successfully
competed with the railroads because of their cheapness and more
frequent services, particularly between smaller urban centers.
MOTORIZATION OF THE SAHARA
For centuries without change the camel has served as the ship of
the desert. With the penetration of the motor vehicle to all parts of
the world, desert traveling has been made more comfortable and
quicker. Although the camel will probably never be entirely replaced,
it is safe to say that established motor routes in desert stretches will
rapidly increase.
The Sahara Desert has felt the inroads of the motor vehicle. A
regular service of passenger cars across “the garden of Allah,” as the
Arabs affectionately call this vast territory, was begun in October,
1924. The route connected the southern points of Algeria with those
in the northern region of French West Africa, and Colonb-Bechar,
the present South Western Algerian Railway terminus, with the river
Niger.
The cars originally used in the conquest of the Sahara were 10-horse
power Citroens, equipped with track-laying treads similar to those
used on tanks and some farm tractors. A few years ago the Com
pagnie Général Transatlantique, a French company operating a chain
of hotels and a service of auto tours throughout North Africa, em
ployed specially made Renault twin-six-wheel cars to negotiate the
27
sand dunes in order to provide tourist excursions to interesting south

ern and southeastern desert oases.
These cumbersome-appearing cars have been very successful in
crossing the sand and will probably remain the only means of quick
motor transportation over this territory until a means is provided
whereby stock cars can be utilized for this traffic.
These cars are provided with 6 pairs of twin wheels, 12 in all, and
are of 16 to 20 horsepower, French rating. The seating arrangement
of each type in use provides accommodations for 6 or 10 passengers,
depending upon the size of the car. A native guide is also carried.
Excessive speed could hardly be expected of a vehicle of this type;
over a hard surface 20 miles an hour is the maximum, while in the
dune country, where speed is out of the question, 75 to 85 miles is
considered a good day's run.
When these desert busses were first put in operation, a special device
to enable them to extricate thémselves from pockets between the sand
dunes was included as necessary equipment. The ascent was some
times so steep and the sand so soft that in order to enable the car
to obtain sufficient traction, this device, consisting of a metal hoisting
drum, was fixed on the front axle. From this drum extended about
60 feet of a strong steel cable, the other end of which was carried
up to slopes of the next dune and fastened to a steel anchor driven
into the sand. This cable was then wound on the drum with power
from the engine, and with this winding the car lifted itself to the top
of the next dune. This means of getting out of the greatest difficulty
of desert traveling, although satisfactory, was considered cumbersome
because of the weight of the apparatus, but the method has now
been supplanted by specially made boards which are placed before
the wheels when similar diſficulties arise. The improved plan, now
in practical use on most of these vehicles, obviates the necessity of
carrying several hundred pounds of additional steel.
The specially built Renault desert cars are principally in operation
south of Touggourt, connecting that city with El Oued and Tozeur
in Tunisia, but they are also in operation south of Ghardaia.
The drivers of these desert cars are carefully chosen for their skill,
endurance, and mechanical ability; most of them are expert chauffeurs
from France. Each car is accompanied by an Arab guide familiar
with the topography of the region to be traversed. Inasmuch as
sand storms change the entire aspect of the dunes during certain
parts of the year, each car carries a tightly rolled tent and a week's
supply of provisions, in case it gets lost.
It is possible to traverse the distance from Touggourt to Timbuctu
and other important desert oases in the south Sahara by ordinary
stock cars, as the sand dunes can be evaded by striking west of
Touggourt. These journeys are, of course, expensive and can be
undertaken only with a caravan of several cars. The first time this
trip was attempted was during the winter of 1922–23, when a fleet
of Citroëns made the 2,000-mile journey in 20 days.
MARKET SURVEY
In 1928 Algeria enjoyed a period of prosperity such as it has not

had for many years, and practically every line of endeavor was
flourishing. The trade in motor vehicles was similarly good, and this
improvement extended well into 1929. Because of the high tariff,
28
the American share of the market is small, but sales of American

motor vehicles amounted to more than 1,000 units in 1929.
According to certain well-informed persons, there are 20,000 poten
tial car buyers in Algeria. The country from a standpoint of tariffs
and in respect to population being like a part of France, French car
manufacturers have the same advantage of sentiment and freedom
from tariffs that they have in their own country. Taking these fac
tors into consideration, the progress that American cars have made
in the past years is satisfactory, and the situation bids well to con
tinue to improve gradually, despite the fact that a large percentage
of the car-buying public is French, having a tendency to favor French
products. The native, however, has no such prejudices; and although
most cars are still sold to Europeans, the native purchasers are in
creasingly important. They do not have the same sales resistance
as the French and offer a very fertile field to the agents for American
motor vehicles. -
The market future in Algeria is bright. In the past few years

American business in motor cars has increased about 40 to 50 per
cent annually, and in 1930 it should increase between 50 to 60 per
cent over 1929 if no complications arise.
French companies, of course, have the bulk of the business. Some
of the more important companies, both passenger cars and trucks, like
Citroen, Renault, Rochet-Schneider, Berliet, and Panhard-Levassor,
have factory branches at Algiers and keep adequate stocks there.
With the exception of one or two of the large distributors of American
cars, no American company maintains adequate stocks because of the
small amount of business done.
REGISTRATIONS, IMPORTS, AND SALES OF MOTOR VEHICLES
The number of motor vehicles in circulation in Algeria has more

than doubled in the past four years. It is estimated that in 1926
about 18,000 cars and trucks were in operation, while at the end of
1929 the total number was about 40,000, including 33,000 passenger
cars, 6,000 trucks, and about 1,000 busses. Of this number, about
18,000 were in operation in the Department of Algiers, 13,000 in the
Department of Oran, and 9,000 in the Department of Constantine.
In addition, there are about 2,000 motor cycles in the country.
Import figures of motor vehicles into Algeria do not give a true
picture of the situation, inasmuch as many units are transshipped
from France, and the statistics show these cars as coming from the
mother country. Customs figures are calculated primarily on a weight
and value basis, but the following table shows the total number of
automobiles imported between 1925 and 1928.
IMPORTs of AUTOMOBILES INTO ALGERIA
Passenger cars | Trucks
French Other French Other
5, 296 254 . 479 ----------
5, 186 287 553 ----------

5, 865 354 | 672 2
29
A more accuraté portrayal of the market is contained in the follow

ing table, showing sales figures of cars and trucks by Departments
for the first 10 months of 1929:
SALES OF AUTOMOBILES IN ALGERIA, FIRST 10 MONTHS OF 1929
1)cpart- -
Depart I)epart
Type and origin Inent of ment of §§. Total
Algiers Oran - time
-
— -— —- - - - ---— — — —---—— ---

Passenger cars: - | -
French----------------------------------------------- A, ()00 ! 2,707 1, 567 8, 274

American---- - 400 307 100 807
Other------------------------------------------------ 45 58 36 139
Total.--------------------------------------------- | 4, 445 3,072 1,703 9,220
756 408 237 1, 401

122 90 | 57 269
|
878 408 294 1,670
5,323 3, 570 1,997 10,800
With 10,890 cars and trucks sold in the first 10 months of 1929, it
can be assumed that total sales for the year amounted to fully 12,000
units, of which about 10 per cent were American. About 90 per cent
of the “other passenger cars” are Italian Fiats. With the excep
tion of the French and American makes, there are practically no
other trucks sold in Algeria.
PASSENGER CARS
As the foregoing tables bear out, French manufacturers get a large

proportion of the business, with American participation small but
growing.
The only other nation of importance in the car market is Italy,
which sells several hundred Fiats. Attempts to introduce the auto
motive products of other countries have not met with any success.
Most of the passenger-car sales are in the low-price class, although
some medium-price cars sell well. Sales of high-priced cars have been
fairly good, but customers for cars priced up to $5,000 have scarely
been catered to, and in this price range more sales could probably be
made, as the number of customers able to aſſord cars of this quality
increase yearly.
TRUCKS
About 20 per cent of the trucks sold in Algeria are heavy models
with a capacity of 3 to 5 tons. American trucks in this size enter but
little in the market, most of this business being in the hands of
Berliet, Saurer, Latil, Panhard-Levassor, Somua, Unic, and Rochet
Schneider. Of these makes, Berliet does about as much business as
all of the rest put together. There is a good market for these heavy
trucks, as well as for trailers, on account of the wine crops. The
chief reason for the fact that American trucks can not compete, out
side of price, is the matter of spare parts and service. Practically
all medium-price trucks are of French manufacture.
30
The light truck is very popular, and an appreciable number of

American vehicles in this category are sold annually. Nearly all of
the trucks are privately owned, used by contractors and by trucking
firms to transport crops. The principal demand is for light and
medium duty units with a capacity of 1% to 3 tons.
USED-CAR SITUATION
The used-car problem is not so serious as in Morocco, and it is

unusual to allow high trade-in values. The problem has been chiefly
solved by organizing a company in which various dealers are stock
holders. This association, founded for a specific purpose, handles
nothing but used cars. A dealer may bring his used car to the
C. A. L. A. O. (Centrale Algerienne de Liquidation d’Automobile
d'Occasion), or if a customer brings in a used car as a trade in to the
dealer, the latter calls up the C. A. L. A. O., which sends a man over
to estimate the value of the car. This company has fixed prices, based
upon standard used-car price lists published in its monthly paper.
The dealer does business with the C. A. L. A. O. on a basis of 10 per
cent commission. Usually there are three prices for each model,
depending upon the condition of the car. The company also publishes
a barometer of percentage of depreciation from one month to six
years. This system of handling the used-car problem has been found
very satisfactory.
BODY BUILDING
All motor bus and truck bodies in Algeria are built locally, even for
the French makes. There are a few steel bodies built, but most
bodies are of wood. Taking all small firms into consideration, Algeria
has about 25 body-building plants, although not more than 10 of
these have any great production. Outside of Algiers, where the
industry is centered, there are perhaps an additional 20 body builders,
all of which are quite small. The bodies sell for about the same price
as bodies in France, but are generally of inferior quality, particularly
in workmanship.
PARTS AND ACCESSORIES
Practically all parts and accessories are imported from France, with
the exception of those replacement parts for American cars already
in circulation. Most of the garage owners have insufficient capital
and usually deal through well-known Paris jobbing houses. A great
many local firms are one-man affairs, and they indent to Paris, buying
a few lights, bumpers, etc., as needed. Business in these products is
a matter of local trade, and no modern promotion methods are
employed.
The average dealer, instead of going out and trying to sell his prod
ucts, waits patiently until the customer comes in and asks for his
requirements, upon which the dealer will order one or two samples
from a Paris accessory house. The chief demand is for bumpers and
practical accessories if not too high in price. Until this business is
better developed, there is very little to hope for in this territory by
American exporters.
In looking for agents, American firms usually approach the already
organized accessory houses, when it might be more advisable to find
some young man with a little money and plenty of enthusiasm, even
31
if he does not know a great deal about the automobile business,

launch him, and follow up very carefully until he is familiar with the
various details of the business. This same procedure might also be
applied in the establishment of automobile dealers.
GARA GE AND SERVICE FACILITIES
Although garage facilities are slowly improving, there is generally

no conception of adequate service, and dealers as well as car owners
have not yet been fully educated in this direction. One of the chief
reasons for the lack of development and backwardness of this phase
of the market is the lack of capital of most of the dealers and garage
owners. However, a few of the more important American companies,
as well as Citroen, have taken a great interest in this problem, and
are organizing better service facilities to uphold the reputation of
their products.
Although there is a market for all types of servicing appliances,
manufacturers of these products must count on a certain unprofitable
period of education before they can reap the benefits of their sales
efforts. A representative sent into this territory prepared to dem
onstrate the equipment would go far in creating a demand.
MOTOR CYCLES
In 1928 there was a big increase in motor-cycle sales, but the market
for these machines is now declining rather than increasing. About 90
per cent of the machines sold are French, the only foreign make enter
ing into competition being the British Triumph and Royal Enfield
machines. French motor cycles are priced as low as $125, and sales of
the higher priced American makes, with corresponding high freight and
duty charges, are impossible. Altogether, there are about 2,100 motor
cycles in operation in the country.
COMMERCIAL DATA
MARKET PREFEREN ('ES
About 80 per cent of the passenger cars sold in Algeria are closed
models. This is a comparatively recent change, as heretofore there
was a strong preference for open models. Five-passenger types are
preferred, but cars for seven passengers have a steady demand. The
latter trade is chiefly in the hands of dealers of European cars. The
7-passenger automobile in Algeria is usually not purchased as a
luxury or for roominess, but because the native buyers have large
families. The question of price enters the 7-passenger car field in
Algeria to a greater extent than in most markets.
FINANCING
The matter of financing depends a great deal on individuals. If a

sound business proposition is offered it is not difficult to obtain the
necessary financial support. Until recently banks freely accepted
automobile paper, but with tighter money conditions they are now
accepting this paper only with the greatest reluctance. Loans are
usually made to dealers for 60 days at 8 per cent interest, but drafts
are frequently renewed.
32
Between 80 and 90 per cent of all cars are sold on time, with a
down payment of 25 per cent of the purchase price and the balance
in 12 to 24 months; however, in practice, time payments often
extend over two and even three years, with frequent renewals.
A few firms are very careful as to the financial responsibility of
purchasers, but many others make only a cursory investigation of
their clients. Repossession is difficult, and if a man is declared
bankrupt the debt on the car is combined with his other liabilities.
However, the percentage of repossessions is very small, owing chiefly
to the fact that dealers are lenient and extend notes until payment
can be made.
ADVERTISING
Both newspaper and billboard advertising is well developed.

Several of the more important dealers of American and French cars.
engage in a considerable amount of advertising in both of these
mediums, and some of the French companies, like Citroen and
Renault, take an active hand in thus bringing their product before
the eyes of the people. The distributor of one large American com
pany reserves 1 per cent of gross sales for advertising and in addition
bills the subagent for three-quarters of 1 per cent, to be expended
in local publicity channels under the control of the distributor.
Small dealers advertise regularly, but their companies, unwisely,
have not held them to a set program. An important element in
advertising copy which ought to be of considerable help is the stressing
of service facilities, providing, of course, such facilities are available.
Citroen has already developed this argument in its advertising, and
Renault is actively working in that direction.
TUNISIA
Tunisia, with an area of about 48,300 square miles, approximately

the size of Wisconsin, is the smallest and most eastern of the three
countries included in this study. It is still quite new compared to
Algeria, and many parts of the interior are not yet well developed.
It has also the fewest inhabitants and the fewest motor vehicles in
circulation of these three North African territories, yet many of
the conditions and problems encountered in the automobile business
in Tunisia are similar to those of Algeria and Morocco. Although
a French protectorate, Tunisia does not bear the same relationship
to the mother country as the protectorate of Morocco, and it can be
considered more as a colony of France, giving and receiving the same
preferential treatment as Algeria on many items, including auto
mobiles.
The country enjoys a climate which is temperate in the north
and subtropical in the south near the Sahara. Of Tunisia's 32,000,000
acres, 30 per cent are mountains and 23 per cent desert, salt lakes,
and waterways, and of a tillable area of 7,025,000 acres, one-third is
under cultivation.
According to the 1926 census, the population of the country was
2,159,708, of which approximately 7% per cent were Europeans,
including 90,000 Italians, 71,000 French, and 8,400. Maltese. The
economic status of the natives is very low, and, including Europeans,
33
but 225,000 inhabitants enjoy modern standards of living. The

purchasing power of the Europeans is good, and that of the natives,
although low, has been steadily improving. This is reflected par
ticularly in the increasing sale of agricultural machinery to native
farmers. Arabic is the national but French the commercial language,
and , business correspondence and advertising copy should be in
French.
Tunis, the largest city and chief seaport, has a population of
approximately 185,000. Other important cities with their populations
are Sfax, 28,000; Bizerte, 20,000; Sousse, 21,000; Kairouan, 20,000;
and Gabes, 15,000. Sfax and Bizerte are seaports.
The chief resources of the country are agriculture, mining, and stock
raising. The most important imports are textiles, manufactured
goods, iron and steel, and foodstuffs. Exports consist largely of
phosphates, olive oil, wheat, esparto grass, barley, beans, sponges, and
dates. Tunisia is the leading exporter of phosphate of lime, and is
next to the United States in its production.
Tunis has 36-hour steamship connections with Marseille, three
boats a week making the journey regularly. There are less frequent
services from Tunis, Sfax, and Bizerte with Itlay, Malta, Algeria,
Tripoli, England, Belgium, the Netherlands, and Rouen, France.
There is a direct monthly service from New York to Tunis. The
interior of the country is comparatively well served by railroads,
which had a length of 1,258 miles in 1926.
The general customs tariffs of the country, though based upon the
French system, are more moderate. Rates apply equally to all goods
but French, which enjoy free entry or lower rates for many commodi
ties. MOTOR WEHICLE IMPORT DUTIES AND INTERNAL TAXATION
The import duties on motor vehicles entering Tunisia are 45 per

cent ad valorem, the same as levied on automobiles entering Algeria
and France. Tunisian customs authorities, however, have some
times refused to accept the declared invoice values of automobiles
imported from the United States, but have now agreed to valuations
accepted in France. American motor-car manufacturers contem
plating shipping to Tunisia are advised to have their agents in France
procure letters from the French customs officials setting forth the
valuation of the various models accepted by them. This information
should thereupon be forwarded to the Tunisian importers for presenta
tion to the local director of customs.
. There is also an import duty on tires amounting to 2% francs per
#. plus an additional internal-revenue tax on tires of
X110.
6 francs per
There are a large number of internal taxes, but although higher
than those of Algeria, they are not as excessive as those enforced in
France and other European manufacturing countries. For example,
one low-priced American car pays 185 francs tax per quarter. In
addition, there is a municipal tax of 300 francs per year. These taxes
together amount to about $40 per year. Funds collected from this
taxation are used chiefly for the repair and construction of highways.
34
. The following Federal taxes are imposed on motor vehicles operating

in Tunisia:
Cars, trucks, and busses (minimum of 225 francs): Francs per annum
For first 5 horsepower------------------------------------------- 45
Next 5 horsepower---------------------------------------------- 55
Next 10 horsepower--------------------------------------------- 65
Do-------------------------------------------------------- 75
Each additional horsepower over 30------------------------------- 85
Motor cycle.-------------------------------------------------------- 18
With side car--------------------------------------------------- 36
These taxes are reduced by half in the case of (1) vehicles propelled
by internal-combustion engines using gasogene or methylic alcohol;
(2) vehicles which have come out of the plant more than nine years
previous to January 1 of the taxable year. Vehicles belonging to
the Government are exempt.
Registration, annually: Francs
Automobiles---------------------------------------------------- 100
Motor cycles--------------------------------------------------- 50
Driver's permit----------------------------------------------------- 65
Automobiles in transit over 8 days and under 2 months, each month- - - - - - 25
Municipalities of Tunisia also have their own schedules of taxation,
in addition to the above-named Government taxes. That for Tunis,
the highest in the Regency, is quoted:
Private cars: Francs per annum
5 horsepower--- - - - - - - - - - - -------------------------------------- 200
5 to 10 horsepower---------------------------------------------- 250
10 to 15 horsepower--------------------------------------------- 300
15 horsepower and over------------------------------------------ 600
Taxicabs (no car over 10 horsepower may be taxi) -- - - - - - - - - - - - - - - - - - - - - 400
|Eor-hire cars (lined up in special street):
Up to 15 horsepower------------------------. -------------------
550
Over 15 horsepower---------------------------------------------
800
For-hire cars (kept in garages) - - - - - - - - - - - - - - - - - - - - - - - -----------------
750
Trucks------------------------------------------------------------ 800
Trailers-- - - - - - - - - - - -* - - - - - - - - -- - - - - - - - - - - - -- - - - - -- - - - - --- - -- - - - ---- 500
Motor cycles------------------------------------------------------- 120
With side car--------------------------------------------------- 200
HIGHWAYS
The state of highways in Tunisia is generally poorer than that

of the highways of Algeria and Morocco. There are a number of
excellent roads leading out of Tunis, but 50 miles away from the capital
city most roads leave much to be desired. The highway system can
be classified in three groups; main highways, numbered from 1 to 27,
leading directly into Tunis; secondary highways, numbered from 31 to
111, connecting the main highways, and vicinal and colonization roads
of regional interest. There are about 7,081 miles of roads of all kinds
in Tunisia, of which about 3,163 miles are macadamized, 155 miles are
macadam surface treated, about 23 miles are of bitumnous concrete,
and about 3,728 miles are of unimproved earth trails or “pistes”
created merely by frequent passages on which some road work has
been done at the worst points.
The greater part of the roads in existence consist of gravel or ordi
nary macadam of an average width of 4 meters, but on certain vicinal
roads the width is 3 meters and sometimes only 2% meters. Some
sections near Tunis are constructed of concrete, but this type has not
been in general use up to the present time. The administration of all
35
road building has been concentrated in the Tunisian bureau of public

works. The regional roads are also under the supervision of the
bureau, as there are no municipalities that undertake such work.
- º: following table gives a comparison of the road budgets for 1929
and 1928.
TUNISIAN BUDGETS For HIGHw AY CONSTRUCTION AND MAINTENANCE
[In francs]
Item 1929 1928
Personnel-------------------------------------------------------------------- 2,700,000 | 1,868,200

Subsidy from general budget- - 27,767,500 26,767,500
Subsidy from military credits 500,000 400,
Interest charges and loans---- 3,600,000 1,500,000
Special credits--------------- 1,600,000 3,700,000
Circulation, tire, and gasoline taxe -- - 7,250,000 | 4,010, 000
Bond issue for road building - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - --; 21,000,000 10,000,000
REGISTRATIONS, IMPORTS, AND SALES OF MOTOR VEHICLES
It is estimated that about 9,900 passenger cars and trucks were in

circulation in Tunisia on June 30, 1929, although cumulative registra
tion figures on that date were 13,242. There are fewer trucks and
busses in operation in Tunisia in proportion to the total number of
motor vehicles registered than in any North African or European
country, commercial vehicles not exceeding 10 per cent of the total.
Statistical data on registrations by districts are not available, as all
motor vehicles for the entire country are registered in the city of
Tunis, and there is no way to ascertain the percentage in the various
districts.
The latest import figures available are those for 1928, when slightly
more than 2,000 cars and trucks entered the country. In the first
half of 1929, 1,400 automobiles were imported through the port of
Tunis, through which practically all of the vehicles enter, showing a
decided increase over the corresponding period of the previous year.
The following table shows imports of motor vehicles into Tunisia by
countries of origin:
IMPORTS OF MOTOR VEHICLES INTO TUN ISIA IN 1928
Country of origin | Paºlºr Chassis Mºſ

- - -- - - - - -- -- - ----------- - - - - - - - - -—
| -
Kilos
1, 764 119 44,819
89 . 2 ----------
74 27 100
4 3 3, 125
Total.------------------------------------------------------------ : 1,931 151 || 48,044
The following compilation of sales of automobiles, by months, shows

more clearly the number of cars sold by each of the three principal
competing nationalities. As this is being written, figures for only
the first 10 months of 1929 are available, so figures of November
and December of 1928 are added in order to complete the picture
for an entire year.
36
SALEs of AUTOMOBILES IN TUNIsIA FROM NovKMBER, 1928, To October, 1929
Month French American Italian Other
1928
November----------------------------------------------- 174 15 12 2
Pecember------------------------------------------------ 159 13 6 1
245 24
167 24
239 19
244 36
251 39
190 37
---- 160 43
August---- ----------------------------------- - - - - 179 38
September --------------------------------------- 160 32
October-------------------------------------------------- 190 40
Total.---------------------------------------------- 2, 358 360
MARKET SURVEY
From 3,000 to 3,500 motor vehicles of all kinds are now sold an
nually in Tunisia, of which the American makes account for about
375. American cars have been in the market only about two or three
years, and although sales thus far have been small, the total amount
of business done has satisfied dealers. According to present indica
tions, motor-vehicle sales should increase from 10 to 15 per cent a
year for the next few years, while the percentage of American sales
should increase annually from 25 to 30 per cent over the previous
year. It is more important for American companies to have a strong
distributor in Tunis then it is to have a large dealer organization
throughout the country, inasmuch as 90 per cent of American pas
senger cars and 60 per cent of American trucks are sold in the capital.
Even people in the interior usually come to Tunis to buy their
cars. Although the proportion of sales of French cars in the capital
to the total for the entire country is smaller than the American, still
about 50 per cent of all of the French cars and 30 per cent of the
trucks are sold in the city of Tunis, either to residents of the city or
to purchasers from the interior districts.
Most of the American cars entering the country are transshipped
from bonded warehouses in Le Havre, Bordeaux, and Marsellie and
enter through the port of Tunis.
Next to Tunis, Sousse and Sfax are the most important cities in
which it would be advisable to establish agencies. Although there
are more cars sold in Sfax than in Sousse, the latter city is the more
important distributing center of the two, inasmuch as Sfax is at the
egde of the desert and Sousse the center of a rich agricultural district.
The importance of Sfax has often been exaggerated because of the
phosphate shipments that move through that port.
Agricultural conditions have been very favorable for a number of
years, and the prosperity of the country has been gradually increased,
with a corresponding good effect on motor-vehicle sales.
PASSENGER CARS
When the first automobile show was held in Tunis in November,

1926, only one American make was displayed. Since then other makes
have been introduced into the country, and at the present time most
37
of the American manufacturers are represented. During 1927, sales

of motor vehicles progressed gradually, although there was a tempo
rary setback toward the end of that year because of a failure of crops.
Toward the end of 1927, difficulty arose for the first time in the
disposal of secondhand cars, and as a result, many dealers found them
selves financially embarrassed. The tension in the automobile trade
let up in the early part of 1928, and the second half of that year
passed under the most favorable auspices, with sales very active and
prospects for the 1928 crop the best in many years. The import,
trend became heavier, and competition between American and
foreign makes increased steadily. Imports of motor vehicles rose
from 100 a month throughout 1927 to 160 a month the first half of
1928, and 180 a month during the last half of that year.
Competition between French and American makes was particularly
keen in 6-cylinder models, many French manufacturers advertised
extensively and attracted a certain clientele by their low prices. The
Italian Fiat also became an important competitor, particularly as
the large number of Italians resident in the country had a certain
sentiment toward the product of their country. At the present time
about 120 Fiats are sold annually, but sales of cars outside of French,
American, and Italian makes are negligible. Recently Mercedes Benz
and Opel established agencies, but sales of these makes did not amount
to more than a few units annually.
At present about 30 per cent of motor vehicles are sold to natives,
but this proportion will increase in the future. Low-priced cars are
the best sellers and rank, in the order of importance, as follows:
Citroen, Renault, Peugot, Fiat, and a popular American make.
The used-car situation has improved somewhat during the past
year, but still remains much worse than in Algeria. There is no great
collaboration on the part of dealers in the matter of prices or methods
of disposal, nor is there any organization to handle the problem in an
intelligent way. Some lesser-known makes are practically unsalable
as used cars because of the absolute lack of spare parts available.
B USSES
Because of the comparatively short distances and the development

of railways, few busses are used in Tunisia. Bus lines are operated
privately on routes for which exclusive licenses are granted, and native
Arabs are usually the only passengers. About 100 busses cover the
important routes. In view of the unimportance of the market and the
strong position of French manufacturers, the Tunisian market is not
attractive to American bus manufacturers at the present time.
Busses are used entirely by private operators, to run between
various centers not served by railroads and a few of the important
towns. There are two large companies in the motor-transport field,
La Tunisienne Automobile, in Tunis, which serves the north, and
the Société des Transports d’Automobile du Sahel, located at Sousse.
These companies carry mail and are subsidized by the Government.
The Government does not permit competition with railroads, and
licenses are contingent upon this restriction. According to the terms
of the agreement with the State, busses must provide seats for 22
passengers, and carry 1,000 kilos of merchandise. La Tunisienne
Automobile employs Delahaye busses exclusively, while the other
company at Sousse started operations a number of years ago with a
38
number of medium-sized American truck chassis with locally built

bodies. These were replaced later with French Latil busses.
There are a large number of very small lines, usually private owners
who operate one or two busses, competing with the railroad, carrying
native passengers and freight to wherever it may be profitable to take
them. Some of these lines operate as outlaw organizations, having
no authority nor license to engage in the traffic.
Although there is practically no opportunity to expand the motor
transport business in long-distance hauls, there is a considerable
future for suburban bus lines.
TRUCKS
Although the standard of living of the natives of Tunisia is similar

to that of Algerian natives, they own fewer motor vehicles and, as a
class, stand out as the greatest potential buyers of motor vehicles,
particularly trucks, in the country. Up to the present time the pro
portion of truck sales in Tunisia to the total number of motor vehicles
sold has been much smaller than elsewhere. Of the 3,000 automobiles
sold annually in Tunisia, not more than 250 are commercial units,
of which about 100 are of the medium and heavier types. The
railroads are well developed, and farmers transport their goods by
railways or hire trucking companies. With the gradually increasing
prosperity, however, it is expected that the truck market among the
agricultural class will improve more rapidly in the future. Most
of the commercial units are sold in the north, in the richer and
better-developed agricultural districts. That section of the country
is in a better position economically than the south, owing to more
diversified farming.
The new demand for trucks has seemingly already started, and
imports of these vehicles increased perceptibly in the first half of
1929. France dominated almost exclusively in the heavy and medium
models, but American light-weight models find a certain outlet. The
good reputation enjoyed by the heavy French trucks, protected by
the 45 per cent duty, has made foreign competition difficult.
The continual expansion of the road system, mounting freight rates,
and the gradual adoption of modern farming methods should tend to
increase truck sales. The ratio demand according to capacity is
estimated at 40 per cent for the 1 to 1% ton model, 20 per cent from
2 to 4 tons, and 40 per cent of the heavier models.
There are two body-building plants of importance in Tunisia,
although a number of smaller companies make a few bodies annually.
Light truck bodies are usually imported with the chassis from France,
but heavier types are all made locally. Body building in general is
more expensive than in Algeria, and such French manufacturers as
Citroen and Peugeot send chassis equipped with bodies from France.
The advantage to the buyer is that he does not have to wait long for
his body, and the price is not very much higher than for the local
product. Some dealers are considering importing all of their truck
bodies from Marseille.
PAIRTS, ACCESSORIES, AND SERVICE APPLIANCES
Citroen is the only company that has a branch in Tunisia, and keeps
a large stock of parts available in its warehouse for dealers. , Service
facilities, in general, are no better than in Morocco or Algeria, and a
39
great amount of work still remains to be done in introducing necessary

appliances. -
Replacement parts come almost invariably from France, except for

American cars. Such items as American spark plugs, brake lining,
and lamps, however, might be introduced if the market were properly
canvassed and liberal inducement made to dealers. American
products enjoy an excellent reputation and have possibilities for
expansion in the growing market.
Accessories have a small demand, but those advertised in leading
French trade papers are likely to find quicker popularity if not priced
too high.
MOTOR CYCLES
With less than 900 motor cycles in operation, France dominates

the market for these machines, the low-priced, low-powered types
being in demand. Total sales of these machines amount to not more
than a few hundred annually.
SALES PROMOTION
AD VEH-TISING
Most of the larger French companies, particularly Citroen and

Renault, advertise considerably. Fiat and two popular American
makes also use this means of sales promotion in bringing their product
into public notice. Other American manufacturers advertise but
little.
Newspaper publicity sent out by the factory is often unsuitable,
and does not always make the proper appeal to the Tunisian public.
A leading paper, La Depeche Tunisienne, with a circulation esti
mated at 30,000 to 35,000, carries most of the press advertising of
automobiles. Billboard advertising is also used, the current charge
for one board being about 4,000 francs per year. A new high tax on
billboards, which became effective on January 1, 1930, may lessen
their use.
FINANCING
The percentage of motor vehicle sales on credit is greater in Tunisia

than in any other North African country, amounting to between 90
and 95 per cent of the total, with an average down payment of only
20 per cent and the balance over 18 months. Natives always buy on
credit and usually take longer in paying than Europeans. Even if
they are wealthy, the custom of credit is so firmly ingrained upon them
that they may take as much as 2 and 3 years to liquidate the debts
on their cars. Banks accept the papers of the dealers with reluctance
and charge from 10 to 12 per cent interest. It is estimated that
dealers' losses on credit sales amount from 4 to 6 per cent. This is a
higher percentage than in either Morocco or Algeria.
The habit of long credits has so permeated the country that even
repair work and about 75 per cent of the gasoline is sold on credit,
Sometimes up to six months.
O
-- R. P. LAMONT, Secretary
BUREAU OF FOREIGN AND DOMESTIC COMMERCE
REGEIVED *~~~~
A, 12 1930
3. 8 U. LIBRARY
TGERMAN CHEMICAL DEVELOPMENTS
IN 1929
HF
0S
285
0,690 UNITED STATES
WASHINGTON : 1930

FOREWORD
German chemical production in 1929 was estimated at approxi

mately 4,000,000,000 marks—almost $1,000,000,000. About one
fifth of the total production was accounted for by artificial nitrogen
carriers and one-eight by dyes. While the 1929 production was an
increase over that of 1928, the increase was not as great as in former
years. It is believed that the present production is about equal to
the demand.
German chemical exports in 1929 were higher than ever before,
being valued at about $327,000,000. Imports were valued at $75,
000,000, leaving a favorable balance of $252,000,000 in the country’s
chemical trade.
Conspicuous technical progress was made throughout the year
in the German chemical industry, especially in nitrogen fixation,
hydrogenation of oil, and fine-chemical preparation. Concentration
and rationalization were factors contributing to the higher profits
realized. The dye trust continued to extend its international affilia
i.
efore.
and penetrated foreign markets to an even greater extent than
This publication is the fourth report on German chemical develop
ments, similar reports having been published annually since 1926.
Other bulletins have been issued on the chemical industries and trade
of France, Great Britain, Italy, and Switzerland. The Chemical
Division of the Bureau of Foreign and Domestic Commerce will
welcome inquiries from American firms for more specific information
on any of the subjects covered in these bulletins.
WILLIAM L. Coop ER, Director,
APRIL, 1930.
(II)
GERMAN CHEMICAL DEVELOPMENTS IN 1929
By William T. Daugherty, American Trade Commissioner, Berlin
GERMAN CHEMICAL INDUSTRY AS A WHOLE
Though German chemical production, as a whole, was not less in

1929 than in previous postwar years, it did not show so great an in
crease as in former years. The apparent reason is that a saturation
point is near attainment in German chemical production. The case
of chemical-fertilizer production (fixed nitrogen and potash), by far
the leading item of German chemical output, is representative;
though increased, the gain was not so marked as formerly, since
agriculture in Germany and elsewhere was somewhat depressed in
1929.
German chemical production in 1929 could probably be valued at
around 4,000,000,000 marks (equivalent to almost $1,000,000,000).
Of course, there still is lacking a definite limit as to what constitutes
chemical production, and consequently this presentation is based
upon a list of what the German Union for Chemical Promotion
preferred to list as chemicals as submitted by that body to the
World Economic Conference in 1927.
Out of its reported 4,000,000,000-mark chemical production, about
20 per cent (a maximum of 800,000,000 marks) may be credited to
the artificial nitrogen carriers, 12 per cent (maximum 480,000,000
marks) to dyes, and 5 per cent (200,000,000 marks) to rayon. The
value of Germany's potash and by-product output probably exceeds
the rayon figure by at least 50,000,000 marks, while that of pharma
ceutics is believed to be 200,000,000 to 300,000,000 marks.
While the German Union for Chemical Promotion estimated in 1927
a figure of 3,000,000,000 marks as representing the value of chemical
production in 1924, it makes available further estimates for 1927,
giving German chemical production then a value of 3,600,000,000
marks. It is interesting to compare these totals with the corre
sponding pre-war (1913) figure of 2,400,000,000 marks.
The following table shows the estimated world chemical production
in 1913, 1924, and 1927:
Estimated VALUE OF WoRLD CHEMICAL PRODUCTION
[In million of German marks]
Country | 1913 1924 1927

l
3,400 8,400 0,450

2,400 3,000 3,600
1, 100 2,300
850 1,500
286 730
150 550
120 540
Belgium------ 250 6,400 450
Netherlands....III III----- -- 150 350
śland...............------.
SW60en------- :
--
};} ;
Norway.......I.I.I.I.I.I.Ill-------------------------------------------- 100 85
Other countries...I.I.I.I.I.I.I.------------------------------------------- 750 1,700
Total.-------------------------------------------------------------- 9,836 17,800 21,775

2
The value of the world's production of heavy chemicals excedes

any other single group; in 1913 it was estimated at 2,600,000,000
marks and in 1927 at 7,500,000,000 marks. Pharmaceutics production
is next in value, with 1,750,000,000 and 3,000,000,000 mark estimates;
then mineral and coal-tar colors, 1,500,000,000 and 2,500,000,000
marks; rayon, 250,000,000 marks and 2,000,000,000 marks; contained
nitrogen, 1,000,000,000 and 1,500,000,000 marks; cosmetics and
perfumes, 500,000,000 and 1,500,000,000 marks.
GERMAN CHEMICAL EXPORTS
Germany exports about one-third by value of its chemical produc

tion, importing about one-twelfth this amount, of which about
$20,000,000 worth originates in the United States. In 1929 (within
the limits of its insufficiently listed chemical foreign-trade group)
its exports were valued at 1,374,543,000 marks against corresponding
imports valued at 316,019,000 marks, a favorable balance of 1,058,
524,000 marks. While the German foreign-trade classifications of
chemicals, as noted, are not exactly sufficient, in a sense they afford
a basis of comparison for a series of years. Such a comparison shows
increasingly favorable trade balances, adding to the country's eco
nomic wealth. In respect of this favorable trade balance, the German
chemical industry may be considered the third export-excess industry,
after iron and steel, which ranks first, and machinery, ranking second.
It might be noted that while German chemical exports in 1913
were 9 per cent of the country's total exports (and chemical imports
4 per cent of the total), 1929 chemical exports reached around 11
per cent of the total and imports 2.4 per cent.
GERMANY's For EIGN TRADE IN CHEMICALS
[In marks]
Exports
Excess of ex-
portS
|| Year Imports Exports
Excess of ex
Imports ports
1913----| 441, 690,000 956, 111,000 514,421,000 || 1927----| 272,265,000 | 1, 189,927,000 917,662,000
1924----| 144, 767,000 580, 544,000 || 435, 777,000 || 1928----| 311,518,000 | 1,314,588,000 | 1,003,070,000
1925----| 211, 172,000 897, 723,000 | 686, 551,000 || 1929----| 316,019,000 | 1, 374,543,000 | 1,058, 524,000
1926----| 198, 740,000 994, 256,000 | 795, 516,000 ||
PRICE LEVELS
According to W. Roth, of “Chemiker Zeitung” (Coethen, Anhalt),

the price level of German chemicals in 1929, though above 1913,
was well below the average general index of other goods. On the
basis of a 1913 index of 100, German chemical prices were 119
against a general index of 150. Roth claims the current chemical
price index in Germany is lower than elsewhere, as in France it is
120, in Great Britain 144, and in the United States 135. The lower
German level is, of course, caused in part by the drop in prices of
fixed nitrogen, the latest decline having been effected July 1, 1929.
PROFITS
Concentration and rationalization in the German chemical indus

try, as in other industries, has contributed to increased profits. So
have the workings of the international cartels, among which those
affecting nitrogen, potash, and dyestuſ's are outstanding. The
-
German Union for Chemical Promotion, in its latest calculations

on average profit showing, figures that 112 representative German
chemical corporations averaged a 9.9 per cent dividend on their
1928 business, against 9.4 per cent in 1927, 6.6 per cent in 1926,
and 6.6 per cent in 1925. The average is increased by inclusion of
the German dye trust, which paid 12 per cent the last two years.
Excluding the dye trust from the calculations, representative other
German chemical corporations averaged 7.1 per cent in 1928, 6.8
per cent in 1927, 3.7 per cent in 1926, and 3.1 per cent in 1925.
TECHNICAL PROGRESS
Conspicuous progress, as will be discussed later, has been noted

in new processes, notably in the Ruhr district, fixing nitrogen synthe
sized with hydrogen separated from coke-oven gas by employment of
the Bronn-Linde-Concordia process of liquefaction. Though pro
duction so far is quantitatively small when compared with that of
the existing Haber-Bosch dye-trust plants, controlling some 70 per
cent of a total German production of about 800,000 tons of contained
nitrogen a year, the Bronn-Linde separation marks a new epoch in
the industry. Concurrence of methane and other components of
this coke-oven gas provides an object of research, notably at the
Kohlenforschungs Institut at Muehlheim, seeking to convert methane,
for instance, to light oil and acetylene.
Further reference will be made to the German dye trust's process
of yºming
Vle ICl.
crude oil for a better quantitative and qualitative
Another step in progress may be evident in local efforts to ship,
in steel bottles, liquefied oxygen instead of the compressed gas, as
recently proposed by Doctor Heylandt, of Berlin, before a meeting
of the German Acetylene Union.
Siemens & Halske, Berlin, expects to cheapen production of
beryllium for light metal alloy, having produced 1 ton of beryllium
metal in 1929.
Progress will be noted in a later section in production by the potash
works of chemical salts by elimination and recovery of valuable
wastes not utilized heretofore.
Use of comparatively expensive sulphuric acid is spared in certain
new ammonium sulphate processes, the Tern and C. A. S. processes.
Mention might be made of progress in preparation of fine chemicals,
in producing better and cheaper such products as adipic acid, acridin,
etc., of work on parahydrogen (Hans Fischer, Munich), and of the
production of the new element, rhenium (J. and W. Noddack).
INTERNATIONAL AFFILIATIONS
Though special discussion is made later in this report of the inter

national penetration of the German dye trust, mention is made here
of affiliations by some other German chemical companies abroad.
Chemische Fabrik in Billwaerder vorm. Hell & Sthamer A. G.,
Hamburg, raised its capital to 5,500,000 marks, employing 1,500,000
marks to associate with the Norwegian Jan Kemisk Fabrik A. G.
of Frederikstad.
German Solvay Works acquired all shares of the Werrawerke A. G.,
Buchenau, from the French St. Gobain group.
4
British Bemberg (Ltd.), capital £1,350,000, was founded by the

I. P. Bemberg A. à. of Barmen.
Vereinigte Glanzstoff Fabriken (rayon), Elberfeld helped build the
first Rumanian rayon plant at Komorn.
Gebr. Gutbrodt G. m. b. H., Frankfort on the Main, with certain
Hungarian interests, founded Elektrotechnische und Farbenindustrie,
Budapest, building a power plant at War-Palota and using part of its
current to process coal-distillation by-products.
German interests are included in the foundation in Glarus, Switzer
land, of Compagnie Générale de Destillation et Cokefaction a Basses
Temperatures et Minière, capital 1,000,000 Swiss francs.
IIolzwerkohlungs-Industrie A. G., Constance, erected in England
with Distillers Co. (Ltd.), Edinburgh, a plant producing acetic acid
and acetone.
German investors share in the foundation of S. A. des Gaz Indus
trielles, Brussels, capital 8,000,000 francs.
Gebr. Gutbrodt G. m. b. H. and the Swiss Durand & Huguenin
founded Chemietrust A. G. Schaffhausen, capital 20,000,000 francs, a
holding company.
Bituma Bergbau & Chemische Industrie A. G., Carlsbad, capital
800,000 Czech crowns, is a new organization shared by the Bohemian
Union Bank and the German dye trust, through the latter's affiliate,
Riebecksche Montanwerke A. G., Halle, Saale. The Czech portion
of the organization was formerly Bituma Chemische Industrie
G. m. b. H.
GERMAN DYE TRUST
PENETRATION INTO THE UNITED STATES
When the German dye trust (I. G. Farvenindustrie A. G., com

monly referred to as I. G.) announced, on April 26, 1929, its founda
tion of the American I. G. Chemical Corporation, issuing $30,000,000
guaranteed 5% per cent convertible debentures, it founded its second
holding company abroad in connection with its extensive interna
tional penetration. It has just previously (1928) founded a holding
company in Switzerland, I. G. Chemie Basle, whose capital was
raised in January, 1929, to 250,000,000 Swiss francs common stock.
I. G. CHEMIE BASLE
While the American I. G. Chemical Corporation may be viewed as

holding certain of the I. G.'s investments in the United States
(although its charter is elastic enough to contemplate poolin
conceivable interests “elsewhere”) International Co. for Chemica
Enterprises (Inc.) (Internationale Gesellschaft fuer chemische
Unternehmungen A. G.), referred to popularly as I. G. Chemie Basle,
may be considered a European prototype. It was founded in June,
1928, with a 20,000,000 Swiss franc capital, being raised to 250,000,000
francs common and 40,000,000 francs preferred stock by approval of
the I. G. administrative council meeting on January 31, 1929. This
company calculates to hold ex-German securities, as the I. G.'s
share portfolio of Norsk-Hydro, of Oslo (nitrogen fixation), and other
European investments—as doubtless the German trust's 50 per cent
investment in the Spanish Societe Nacionale, 50 per cent of the
Dutch International Bergin company (coal hydrogenation), 30 per
cent of British Breda (rayon), Swiss Durand & Huguenin (colors),
5
25 per cent of Swiss Philana company (wool-finish process applied to

cotton), etc.
The official communique resulting from the above-mentioned
meeting forecasts the acquisition of further holdings. Certain
guaranties are provided for; as, for instance, the same dividend
as paid by the German I. G., with rights to exchange I. G. Chemie
shares for those of the dye trust with certain privileges.
INTERNATIONAL AGREEMENTS
With continued expansion of its international interests in 1929,

the German dye trust was signatory to two important international
cartel agreements during the year. One was the international
nitrogen pact between the German nitrogen syndicate, Imperial
Chemical Industries (Ltd.) of London, and Chilean nitrate producers,
into which the Norsk-Hydro was drawn subsequently. The other
was the Franco-German-Swiss dye pact, an extension of a previous
Franco-German understanding reached in 1927.
Announcement of the international nitrogen pact was forthcoming
on June 26, 1929, in the usual insufficiently informative communique
to the effect that the nitrogen interests involved were to cooperate,
particularly along the line of common propaganda. This pact may be
interpreted as result of threatened overproduction of nitrogen, and
being a more or less forced measure as far as Germany is concerned,
as previous efforts to associate with Chile were fruitless. The agree
ment so far is essentially one involving at least price uniformity,
although it can not be established as yet that a definite production
allocation division is to be effected. Coincident with the conclusion
of this pact, nitrogen prices were dropped effective July 1, 1929.
The pact covers 80 per cent of world production of nitrogen,
probably divided as follows: Germany, 800,000 metric tons contained
nitrogen; Chile, 500,000 tons; and Great Britain, 250,000 tons.
Norsk-Hydro proposes to produce 90,000 annually.
Details are not released concerning the Franco-German-Swiss dye
pact, but it may be viewed primarily as a price convention, though
German sources deny that market allocation is involved, as was
reported from other quarters. The pact was extended to afford
France (Kuhlmann Co.) certain German dye-trust processes, and it
envisages certainly a minimization of competition between the con
tracting parties, at least in halting, to some extent, intertrading in
competitive dyes. It aims also to economize on distribution by
certain consolidations of sales agencies abroad. In this connection,
it has been estimated that distribution costs of dyes amount to about
30 per cent of total costs.
Dyestuſfs production of the three countries in the contract was
estimated at the time at about 75,000 metric tons by Germany,
15,000 to 20,000 tons by France, and 10,000 tons by Switzerland.
FINANCIAL DEVELOPMENTS
In current quarterly reports on its progress, the German dye trust

indicates it will show no smaller profits on its 1929 operations than
a year before. It paid a 12 per cent dividend for the previous two
years, and registered a clear profit of 118,458,000 marks for 1928
business on its common stock-capital of 960,000,000 marks, but with
6
an additional 100,000,000 marks Series A preferred shares and 40,

000,000 marks series B preferred. This was 17,646,000 marks more
than the corresponding 1927 net profit, but the reserves and pension
fund were strengthened with the excess profits.
Latest available figures on the German dye trust's financial status
include the following items:
FINANCIAL STATUs of THE GERMAN DYE TRUST
[In marks]
Year Gross profits Costs Amortization Net profits

- --------- -- - - - - - - - ---- -
–
1928-------------------------------------------- 257, 140,000 51, 900,000 71, 770,000 118, 460,000
1927_ -- 224, 300,000 48,750,000 74, 740,000 100, 810,000
1926– ---- 186,000,000 42, 100,000 75,200,000 68,700,000
1925-------------------------------------------- 168, 500,000 45, 200,000 55, 700,000 67,600,000
l
PRODUCTION
Despite the strained economic situation that prevailed in Germany

during 1929, due partly to cessation of American loans, reparations
policy discussions, etc., the German dye trust issued occasional state
ments to an alarmed investing public that its production along all
lines was no less than a year before, and that the comparatively low
level of its stock quotations was effected by influences beyond its
province and not by its own internal condition. Alarm was aroused
in the early fall of 1929, for instance, by reports of overstocks of
fixed nitrogen in dye-trust silos and by the dismissal of labor crews.
The amount of nitrogen stocks, though production is threatening
saturation, was doubtless a normal phenomenon, as stocks are piled
up for unloading during the late fall and winter months for oversea
shipments to meet the following spring's fertilizing. The dismissal of
labor crews was natural, in connection with completion of some
extensive building operations at I. G. plants during the period of
rationalization that is now about ended. I. G. labor declined from
a peak of 117,213 by 6,237 by September 1, 1929. It remains to be
seen, however, what increased turnover and profits, if any, the I. G.
will show on its 1929 operations.
Though the I. G. withholds its production figures, a probable
i.
ollows:
estimate of output of certain of its leading items would be as
Esti MATED 1929 GERMAN DYE TRUST PRODUCTION OF STAPLEs
Total German production

Commodity I --
Metric tons Marks Metric tons Marks
Fixed nitrogen.-------------------------------- | 650,000 , 560,000,000 800,000 700,000,000

Dyestuſ's-------------------------------------- | 75,000 350,000,000 75,000 (1)
Pharinaceutics--------------------------------- 4,000 80,000,000 10,000 200,000,000
Rayon----------------------------------------- 6,600 46,000,000 : 25,000 160,000,000
Synthetic gasoline.-----------------------------. 100,000 40,000,000 | 2 100,000 (1)
! Not available.
? Production of a Bergius plant in the Ruhr, at Duisburg, Meiderich, was suspended after an explosion
June 28, 1929.
{
The value of the German dye trust's total production may be

roughly placed at about one-third of total German chemical produc
tion, valued at around 4,000,000,000 marks.
Its more or less market-saturating production of dyestuffs permitted
a net export of 38,914 metric tons in 1929, against 42,606 tons in 1928,
and 44,171 tons in 1927. A special 1929 development was improve
ment of the napthol A/S series for dyeing acetate rayon. The follow
ing table shows German foreign trade in dyes:
GERMAN FOREIGN TRADE IN DYES
1929
Item 1927 1928 |
Amount Value
Exports: Mctric tons | Metric tons | Metric tons | Marks

Aniline------------------------------------------- 29,735 30, 651 27,477 141, 587,000
Alizarine---- 3,088 2, 180 2, 651 33,041, 000
Alizarine red 975 2, 357 1,879 3, 658,000
Indigo.------ 14, 301 11,970 10, 946 25,400,000
Indigo carmine t 704 153 ------------ !--------------
Total.------------------------------------------ l 48. 803 47, 311 42,953 203,686,000
Imports-------------------------------------------- - 4,632 || 4,705 4,039 || 2,295,000

Net exports------------------------------------ 44, 171 42,606 -
38,914 l
182,391,000
The I. G. may be figured as producing some 40 per cent of Ger

many's total pharmaceutic production. The mid-June issue of
Chemisch-Technische Zeitschrift (Berlin) values the latter, however,
at 300,000,000 marks, with a retail value of about 630,000,000 marks.
This authority estimates the division of German pharmaceutic pro
duction as follows: -
Marks
I. G. Farbenindustrie A. G., Frankfort on the Main - - - - - - - - - - - - - 80,000, 000

Six next producers (8,000,000 marks each) ---------------------- 48,000, 000
Medium and small producers.--------------------------------- 180, 000, 000
Total------------------------------------------------ 308, 000, 000
The I. G.'s synthetic gasoline plant at the Leunawerke, Merseburg,

raised production to about 300 tons daily in 1929. This operation
involves the catalytic pressure treatment of lignite and lignite tar.
The lignite is milled, mixed with oil from the process to a ſluid state,
then hydrogenated catalytically under 200 atmospheres pressure at
500° C. Ten per cent of the insufficiently hydrogenated mass returns
to the process cycle. The synthetic gasoline so produced is now on
the market under a trade name.
The I. G.'s share of German rayon production may be compared
With that of all German rayon factors, as shown in the latest available
(1928) figures: Kilos
Vereinigte Glanzstoff and subsidiaries - - - - - - - - - - - - - - - - - - - - - - - - - - - - 9, 000, 000
erman dye trust and subsidiaries------ - - - - - - - - - - - - - - - - - - - - . . . 6,600,000
J. P. Bemberg and subsidiaries---------------------------------- 2,800, 000
Fr-Kuettnerºl-l-l-l-l-l-l-l-l-l-l-l-l-l-l-l-l-l-l-l 1, 500, 000
Other companies---------------------------------------------- 1,400, 000
The I. G.'s Leunawerke, producing Haber-Bosch synthetic am

monia and synthetic gasoline, also produces synthetic methanol, a
106846—30—2
8
product that came on the market about 1923. This catalytic

pressure synthesis combines carbon monoxide annd hydrogen to pure
methanol. It is believed that the I. G. Leunawerke is producing 60
metric tons of this methanol daily, and has a capacity of 100 tons.
At this rate the works are producing nearly 20,000 metric tons
annually, which, with output of the wood-distillation factors,
Holzverkohlungs-Industrie A. G., Constance, and Verein fuer
chemische Industrie, Frankfort on the Main, permitted a 1929 export
of 16,034 metric tons, against 12,563 tons in 1928, and 13,180 tons in
1927, of which 1,112 tons, 535 tons, and 4,519 tons, respectively, were
shipped to the United States.
ELECTROCHEMICALS AND COAL-TAR DERIVATIVES
German official statistics are rather sparing in giving estimates of

chemical production, and those offered are generally related to
Government control or taxation, such as alcohol, acetic acid, sulphuric
acid, salt (sodium chloride), etc. Another range of products is
cartelized in respective selling associations generally, but it is rather
the exception than the rule that the cartels release their estimates of
production.
Two of the most extensive sets of estimates that were published
in 1929 relate to electrochemical products and to coal-tar derivatives.
The estimate of electrochemical production originated with Doctor
Hess, general manager of the Dr. Alexander Wacker Co. of Munich,
who offered it in connection with an address made at Hamburg in
December, 1928.
This set of figures, comparing German with world production,
is the first of its kind that has been published, at least in the postwar
period.
GERMAN ELECTROCHEMICAL PRODUCTION AND CoNsu MPTION IN 1927
(jerinan Electricity | World |

l Electricity
Item Pºlº consumed
in German º -
| consumed
in world
production | I}roduction
Metric tons ! Kilou"att hours Metric tons Kilowatt hours

Aluminum--------------------------------- 27,000 675,000,000 206,000 5, 150,000,000
Carbide (except cyanamide) -- - - - - - - - 170,000 : 550,000,000 610,000 2,000,000,000
Cyanamid, primary nitrogen --- - - - - - - - - - - -. 85,000 935,000,000 188,000 2,250,000,000
Synthetic ammonia:
Water-generator gas pressure synthesis 1--- 486,000 1,000,000,000 528,000 1, 100,000,000
("oke-oven gas pressure synthesis 1 - - - - - - - - 2,000 6,000,000 32,000 106,000,000
N tº; hydrogen pressure synthesis 2,000 000 1. º ;§ 2 860, §§
itric acid (air) - . . . . . . . . . . . . . . . . . . . . . . . 2,000 , ()00,000 Ú, , 800,000,
Oxygen, compressed - - - - - - - - . . . ... i. 230,000,000 45,000,000 i * 150,000,000 210,000,000
gºldier - - - -- | • 35,- ()00 -35,000,000 | 2 100,
- º ºº - 100.000,000
"hlorine- - - - - - - -- . - - - - - i- - 100,000
- - - 370, 00- - - - - { } -->
Caustic soda (electrolytic) . . . . - - -- 110,000 330,000, 000 410,000 } 1,250,000,000

Hydrogen peroxide . . . . -- - - - - - - - - - -| 3,000 ...º jº, º 199,999.9%
erro-silico - - , vvv, • ºvv, vvºir,
#.
Carborundum . . . . - - - - ---
- | * 3,000
'ºſ)
20.000,000
1,000,000
100,000
6-8,000
600,000,000
80,000,000
Electrographite. - - - - - - - - - - - - -- -, * 5,000 | 50,000,000 : 25,000 250,000,000
§ºnºun
agnesium - - - - - -
Sodium. - - - - - - - - -
-
- -
-
- -
- - -
- -
- - -
-
-
- - - -
- -
- - - -
- - -
-- -
- - - -
-
-
-
-
-
- -
-
-
-
- -
- -
-
- -
-
-
º !!! § {}
-
* 10,000
.5t), UUU,
150,000.000
*}}
-
25,000
- º §§ - www.r
375,000,000
Electrozinc---- . . . . . . ..... - --- 10()
0( 400,000 , 230,000 900,000,000
| In terms of fixed nitrogen.

! ("ubic meters.
* Ferrochromium, ferrotungsten, ferromolybdenum, ſerromanganese, silicon, aluminum ferrosilicon, and
ferromanganese.
* Uncertain estimates.
9
The following figures, covering production of coal-tar derivatives

in Germany, were prepared and published by the Federal Statistical
Office and are the latest available:
CoNsumption AND PRODUCTION OF GERMAN CoAL-TAR DISTILLATION PLANTs
1928
1913 1927 —— -- .. -
| A mount | Value
l .
CONSU MPtion
Raw materials: Mctric tons Metric tons Metric tons Marks
Coal tar, total.--...-------------------------- - 1, 429,030 1,498, 646 || 93, 622,000
Coke-plant tar 1, 183,216 1,234, 886 || 73,777,000
Gas-house tar- - 237,573 255, 840 19, 190,000
Half fabricates, total - I 14, 127 17.845,000
Crude benzols--- 1 4
: () rºo 8, 190,000
Heavy oils 2.03. ' 5,054,000
Light oils---------- ... 6, 609 - 943,000
Crude naphthalene, etc - - - - - - - | 1,075 18, 23.9 1,656,000
Crude phenols---------------. - - - - - - - - - - - - - - - - - - . . - 1, 204 1,619 | 788,000
Other products, including-- *
Crude pyridines- - - - - - - - - - - - - - - - - - - - - - - - - - - - - 17, (120 11,622 1, 214,000

(jas (ammonia) water---------. - - - - - - - - - - - - - - - - l, ()40 ſ:{() 348 139,000
|
PRODUCTION -
Tar pitch-------------------------------- . - - - 609, 170 659, 327 691, 346 43, 500,000
Prepared tar, etc.--- - - - - - - - - 107, 845 220, 863 243, 901 24, 211,000
Heavy coal-tar oils- - - - - - - - - - 401, 610 127,052 431,931 53,662,000
Naphthalene-- - - - - - - - - - - - - - - - - - 50, 422 42, 638 40,058 7, 108,000
Crude and pure anthracene- - - - - - - - - - 12, (), () - 1, 960, 000
Pyridine bases. . . . . . - - - - - 727 755,000
Phenol, crystalline . . 7, 106 3, 441 1,024,000
Cresols---------- - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - 8, 257 4, 324,000
Crude phenols (for sale).------------ - - - - - - - - - - - - - - - - 423 392,000
Cruſle and pure benzol- 15,795 24, ()42 9, 136,000
Toluol - - - - - I, 581 775, ()00
Xylol - - - - - - - - - - 5, 25ſ) 6.6t;5 1, 869, 000
Cumaron rosins. . . - - - - - - - 1, 644 853, 000
Other products. . . . . . . . . . -------- - - - - - 25, 101 27, 971 2,992, 000
Ammonia water under 10 per cent N -- - - - - - - - - - - - - 11, 003 10, 690 85,000
Anninonium sulphate - - - - - - - - - - - - - - - - - - - - - - 1,063 1, 820 196,000
Sal arninoniac spirits- - - - - - - - - - - -- - -- - - - - - --- - - -, 93] 699 121,000
i
PRODUCTION OF GERMAN LIGNITE-TAR DISTILLATION PLANTs
1928
Item 1926 1027 – -- ------
| Amount Value
CONSUMPTION | Metric tons | Metric tons Matric tons Marks

Lignite tar--------------------------------------------- 181,465 192, 155 188,831 16, 419,000
PRODUCTION |
Total.-------------------------------------------| 162,04 160,493 171,754 28,778,000
Gas, fuel, motor, solar, and paraſſin oil - - 114,671 111, 862 : 115, 161 15, 596,000
- 1 1, 127 813 | 838 188,000
- 4, 854 6,086 7, 590 2,041,000
ara 16,752 16, ()53 17, 494 8, 650,000
Other products, as creosote oil, pitch, etc.--- - - - - - - - - - - i 24,660 I 23, 564 26,018 1, 762,000
MISCELLANEOUS PRODUCTION FIG tº RES
Other selected annual production figures include (in alphabetical

order): Acetic acid, 21, 239 metric tons; alcohol, 3,237,046 hectoliters;
benzol, 350,000 metric tons; camphor (synthetic), 7,000 metric tons;
1 A more extensive treatment of German chemical production figures was given in Trade Information
Bulletin No. 605, German Chemical IDevelopments in 1928.
10
essential oils, 1,000 tons; glycerin, 12,000 tons, hydrochloric acid,

250,000 tons; lime acetate, 10,000 tons; limestone, 12,430,000 tons;
nitric acid, 85,000 tons (dye trust production); pyroxylin plastic,
12,000 metric tons; salt (sodium chloride), 2,909,400 tons; soda ash,
1,000,000 tons; and sulphuric acid, nearly 1,600,000 tons mono
hydrate.
GERMAN ARTIFICIAL FERTILIZER CONSUMPTION
Germany applies more artificial fertilizer to its agricultural soil

than, any other country of equal size in the world; it is true that
the Netherlands and Belgium fertilize somewhat more intensively,
but their areas are not comparable with that of Germany—some
30,000,000 hectares of arable soil.
Whatever records Germany had established previously in this
respect were broken again in the fertilizer year ended June 30, 1929.
According to figures given the latest congress of fertilizer delegates,
meeting periodically in the Prussian Ministry of Agriculture, Ger
many's average per hectare of artificial fertilization was 14.6 kilos of
fixed nitrogen, 18.6 kilos of phosphoric oxide, and 26.6 kilos of pure
potash, all increases over corresponding pre-war figures. With 1913
consumption as 100, the latest figures represent a nitrogen fertiliza
tion of 243, a P.O; application of 103, and a use of K2O of 167.
The curve of artificial fertilizer use may be observed in the follow
ing table. The corresponding figures per square kilometer require
simply a 100-multiplier, 100 hectares making 1 square kilometer.
GERMAN ARTIFICIAL FERTILIZER USE
Nitrogen (N) º oxide in avida |

Pure potash (K2O)
Year . - - - - - - - - i — |
Kilos per
N. Index , Kilos
i. per
Index | Kilos per
hectare Index
1913-14------------------------------------ - 6.0 100 - 18.0 100 15.9 100

1925–2 - 11.4 190 13. 1 73 21.0 132
192 13.8 230 15.4 91 24.7 : 155
1927– - 13, 5 225 17. 5 07 25.3 159
1928-20------------------------------------ 14.6 243 18.6 103 26.6 | 167
It should be of interest to American phosphate rock producers that

German P.O; fertilization, according to the above figures, has in
creased above its corresponding pre-war level, in comparable areas
(exlusive of territory separated under the peace treaty). Though a
great part of this increase has been taken by basic slag, more conven
iently imported from neighboring steel-producing countries, fertili
zation with superphosphate increased in 1929 some 10 per cent, with
ºquent
(IllCGI’S.
proportionate benefits to American phosphate-rock pro
Total artificial fertilizer used by German agriculture is shown in

the following table:
11
CoNSUMPTION OF ARTIFICIAL FERTILIZERs IN GERMANY
[In metric tons]
is. -
Year
*
“S” ºë, Limestone
Nitrogen 'Phosphoric | Pure pot- -
---
185,000 : 555,000 || 490,000 2,852, 500

340,000 i 371,000 || 65. Gº || "#33.0%
330,000 380,000 | 600,000 906, 780
Tº ſº º 1, jº. §§
390,000 , 508,000 : 733,000 1,306,816
430,000 547,000 783, 000 1, 580,000
1 Calendar year.
* Revised figures.
GERMAN FIXED NITRO GEN INDUSTRY
PRODUCTION
Though official or other figures estinating Germany's fixed nitrogen

production are issued to cover years ending June 30, it may be
reckoned that production in 1929 amounted to close to 800,000
metric tons. At the rate of 85 pfennigs per kilo, the value was at
least 680,000,000 marks. Against a corresponding estimated world
production of around 2,000,000 tons, it is to be concluded that
German production approaches saturation, particularly with the
vigorous development of fixed-nitrogen production elsewhere, while
agricultural consumption is slumped
World production in 1929–30, according to estimates of Aikman
(Ltd.), London, will reach 2,365,000 metric tons of contained nitrogen,
of which 1,430,000 tons will be synthetic, 425,000 tons in ammonia
by-product, and 510,000 tons in Chile saltpeter. This is compared
with a total 2,005,000-ton production in 1928–29, as the following
figures show:
ESTIMATED WORLD PRODUCTION OF FIXED NITRO GEN
[In metric tons)
| |
Year Synthetic | By-product' Chilean Total
-- -
|
-
–––––
1926–27___ 735,000 310,000 | 200,000 1, 245,000
1927–28. 75,000 300, thk) 387,000
1928–29_ 1, 100,000 405,000 : 500,000
1929–30– 1, 430,000 425,000 510,000 |
1930–31--- 1, 725,000 | 425,000 530,000 |
CONSUMPTION
The German supply of nitrogen in 1929 may be figured as having

been distributed as follows: 425,000 tons to domestic agriculture,
100,000 tons to industry (in ammonia, nitric acid, and ammonium
nitrate, primarily), and 275,000 tons for export. Considering the
latter, it must also be noted that Germany has excess imports of
Chile saltpeter, preferred for sugar-beet fertilizing; 130,381 metric
tons of bulk Chile saltpeter (16 per cent nitrogen) were imported in
1929, against exports of 69,411 synthetic and natural sodium nitrate,
making a net import of 60,971 tons in 1929 against S1,347 metric tons
excess imports in 1928. Imports were necessarily stimulated by the
12
decrease in price effective July 1, 1929, with the signing of the inter
national Anglo-German-Chilean nitrogen pact, although they re
ceived impetus immediately after free selling was established by the
Chile Nitrate Producers Association.
PROCESSES USED
Germany's estimated production of 800,000 tons of nitrogen in

1929 was probably divided roughly as follows: Metric tons
Haber–Bosch process (Oppau-Leuna)

Cyanamide---------------------------------------
By-product ammonia--------------------------------------------
Other; that is, Ruhr coke-oven gas separation syntheses----- - - - - - - - - 30, 000
HABER-BOSCII PROCESS
The Haber–Bosch direct ammonia synthesis operated by the German

dye trust at the Leunawerke and at Oppau, Ludwigshafen, is the largest
fixed-nitrogen enterprise in the world. Hydrogen and nitrogen from
water and producer gases are combined under a 200-atmosphere
pressure at 500° to 600° C. over an iron-oxide catalyst. The proc
ess yields an 8 per cent ammonia recovery on the first run, the
uncombined gases returning to the process cycle. A subsequent
interaction between the ammonia, carbon dioxide, and gypsum pro
duces ammonium sulphate. Out of an average daily production by
the Leunawerke (with a capacity of 1,800 metric tons of primary
nitrogen daily) of about 1,500 tons, some 600 to 700 tons enters
ammonium sulphate, another 100 to 200 tons enters calcium nitrate,
while the remainder is shipped out as anhydrous or aqua ammonia
for treatment at other works or for the open market. The Oppau
plant, on the other hand, though of but one-fifth the capacity of the
Leunawerke, makes a wider variety of nitrogen carriers.
In addition to these German dye-trust stocks must be considered
the Government-owned cyanamide works at Piesteritz, Central
Germany, and Trostberg, Bavaria, along with the by-product am
monia from the coke and gas plants.
COKE-OVEN GAS PROCESSES
The three major processes basically developed in the pre-war era

will face formidable competition from the new modern syntheses of
coke-oven gas hydrogen with nitrogen over stronger catalysts and,
in some cases, at even lower pressures than the Haber process employs.
The latter, as mentioned, gives only an 8 per cent ammonia recovery
on the first run, while other modern processes give 20 per cent or
better under favorable conditions. The Haber–Bosch Leunawerke
must haul coke from the distant Ruhr to make its water and producer
gases, although experiments are still under way to produce these raw
gases from lignite, available in the vicinity. The production of
Haber–Bosch ammonium sulphate, however, is favored in one special
respect, namely, that it uses cheap gypsum instead of relatively ex
pensive sulphuric acid.
It has been estimated that it costs the dye trust 42 pfennings to
fix 1 kilo of nitrogen in ammonium sulphate, against 39 to 40 pfennings
13
by Ruhrchemie and Kali-Kloeckner by the Bronn-Linde-Concordia

coke-oven hydrogen separation and Casale and Claude ammonia
synthesis, respectively, using H2SO4, whereas the corresponding cost
to fix 1 kilo of nitrogen in cyanamide in Germany is said to be as high
as 61 pfennings. A detailed cost analysis has never been made public
by German producers. Of course, the dye trust is fortified with
tremendous production capacity and a wideline of fixed-nitrogen salts;
furthermore, its nitrogen plants are already amortized, and its utiliza
tion of wastes all along the line is a marvel of plant efficiency.
The newer synthetic-nitrogen plants, already in production or
proposing production based on a coke-oven gas hydrogen separation,
evidently believe that they can produce in competition with the dye
trust with profit. Undeterred by discouragements put in their way,
at least seven new plants are built, or now building, essentially to tap
waste coke-oven gas for cheap hydrogen. Two of them propose to
use an American process. They are:
NEw GERMAN Coke-OvI&N GAs PLANT's FIx1N (; NITRogFN
i -
Name || -
Ilocation l Owner (oricorn

Proposed
nitrogen
| | capacity
–
| - -
|| Metric
- - toms
Gasverarbeitungs Ges--------' Sodingen, West Iºhalia ------- IRoeghling, Hibernia ----------- 50,000
Stickstoff Scholven.----------- Scholven, Rhur - Hibernia (Prussian State).------- ' 40,000
IRuhrehemie A. (H---- ----! Sterkrade, Ilolten - - 28 Ruhr coal companies os - 38,000
Gewerkschaft Victor-- --, Rauxel, Sondershausen . Wintershall-Kloeckner -- --
Gewerkschaft Ewald | Herten, Westphal (lowerkschaft Ewald -- 20,000
Stickstoff A. G. Waldenburg, Si Prince of Pless - - - - - . -
Not given.--- Grillo - - - ---- (helsenkircheller Ber
This impressive total, if and when it materializes, puts in sight over

1,000,000 metric tons of fixed-nitrogen production by German plants.
The three first enumerated above went into modest production in
1929 but, as already suggested, probably did not produce much over
30,000 tons combined. -
MONT-C is N IS PROCESS
The Sodingen, Westphalia, plant is an extension of a former pilot

experimental operation that has developed the so-called Mont-Cenis,
or Uhde, synthesis for a number of years. This process, incidentally,
has been licensed for operation in the Netherlands, Japan, and the
United States. It is expanding production at Sodingen in plant No.
1, making so-called Montansaltpeter, 26 per cent nitrogen (one-fourth
ammonia nitrogen and three-fourths nitrate nitrogen), and in plant
No. 2 at pits of the Hibernia (coal) company, making ammonium
sulphate. Its complex also makes anhydrous ammonia and ammo
nium nitrate. While planning to produce 40,000 tons immediately,
this is expected to increase to 90,000 tons eventually.
ir U. ii frc HEMIE A. G. OPERATIONS
Ruhrehomie A. G. went into production at Sterkrade, Holten, on

April 1, 1929, fed with coke-oven gas from the Osterſeld plant of Gute
Hoffnungshuette, making sulphate, nitric acid, and ammonia. . It
plans to increase production to 50,000 tons of nitrogen, financing
14
extensions with an additional $3,000,000 American loan borrowed in

1929, a previous $8,000,000 American loan having been issued in 1928.
Ruhrehemie's synthetic ammonia results from a Casale synthesis,
employing 750 atmospheres pressure. It obtains its hydrogen from
coke-oven gases also by a Bronn–Concordia-Linde separation.
It is unique in production of so-called ammonia chalk (Kalkam
mon), with 17 per cent primary nitrogen and 30 per cent limestone
(calcium carbonate) produced by interaction of ammonia, carbon
dioxide, and calcium chloride (paralleling the Leunawerke ammonia,
carbon dioxide, and calcium sulphate interaction), producing am
monium chloride and calcium carbonate, composing the mixture
that is adaptable to German soils, still impoverished with limestone
fertilizer because of wartime and postwar limestone shortage. Am
monia chalk did not sell so actively in Germany in 1929, however,
probably because its price was higher than that of ammonium chlo
ride—79 to 89 pfennigs per kilo of contained nitrogen against 76 to
86 pfennigs per kilo.
It might be mentioned that the German dye trust makes its am
monium chloride at its Oppau plant by an interaction of sodium
chloride, carbon dioxide, and ammonia, yielding soda ash as a by
product.
GE WER. KSCIIAFT VICTOR () PEIRATIONS
Gewerkschaft Victor, at Rauxel, 10,000,000 marks capital, asso

ciating the Wintershall concern with the Kali-Kloeckner company on
a 50–50 basis, is essentially a potash plant and is referred to, therefore,
in a later review of the German potash industry in 1929. Ammonia,
from a Claude 1,000-atmosphere synthesis operated at Rauxel, is
shipped to Sondershausen for combination to potassium nitrate.
The Rauxel plant also produces nitric acid and potash-ammonium
nitrate. The latter, with 16 per cent nitrogen of one-half each am
monia and nitrate effect and with 28 per cent K2O, it is understood,
is marketed by the German nitrogen syndicate, but the potash mix
tures are not, making the Wintershall-Kloeckner combine, unlike the
Gaveg and Ruhrehémie operations, independent of the German
nitrogen syndicate.
NITRO GEN SYNDICATE PROLONGATION
Both Gaveg and Ruhrchemie were committed to the German

nitrogen syndicate in December, 1929, after lengthy negotiations in
connection with the prolongation of the cartel from June 30, 1930, to
June 30, 1935; the syndicate here of ore had pooled sales of the nitro
gen carriers made by the dye trust, cyanamide works, and coke and
gas by-product producers in the Ruhr and in Upper Silesia. It may
be believed that Gaveg and Ruhrchemie entered the syndicate either
satisfied with a production (or sales) quota commensurate with the
importance of their coke-oven gas hydrogen synthesis, or because
they prefer to mark time awaiting a reasonable 5-year period during
which they can amortize their initial investment. Otherwise, the
German dye trust, though producing at a straight operating cost
(exclusive of amortizations, etc.) above the coke-oven gas factors,
might have been in position to drop nitrogen prices, to the embar
rassment of the Ruhr plants.
15
NEW PLANT'S AND PROCESSES
Two other enterprises plan to enter the German synthetic-nitrogen

field, employing hydrogen separated from coke-oven gas, and both
announce they will employ an American direct ammonia synthesis,
utilizing a 300-atmosphere pressure for a recovery of from 20 to 22
per cent ammonia on the first run.
One of these is another Ruhr coal operation, so-called Gewerkschaft
Ewald, associated with the Koenig Ludwig pits, which is building its
ammonia synthesis plant at Oer-Erkenschwick (Herten, Westphalia).
It figures its plants will be ready for operation about June 30, 1930,
with an initial capacity of 20,000 metric tons of contained nitrogen
annually. Incidentally, it will recover sulphur from coke-oven gases
by the new Heinrich Koppers Co. (Essen) cyanogen-ann monia-sulphur
(C. A. S.) process.
Stickstoff A. G., Waldenburg, Silesia, capital 8,000,000 marks,
owned by the Prince of Pless interests, also expects to go into a pro
duction of around 15,000 tons of fixed nitrogen annually in synthetic
ammonia by the same American process applied to the hydrogen
nitrogen mixture of coke-oven gas. The latter, however, will be
cracked by a process belonging to the French Kuhlmann Co. and not
under Bronn–Concordia-Linde patents. Though it seems premature
to plan an extension of production, the proposed plant promises a
subsequent output of around 30,000 tons of contained nitrogen
annually.
THU ERINGER-GAS A. G. (LEIPSIG) PROCESS
Furthermore, two processes came to light in 1929 that may solve

practically the problem of combining the sulphur and ammonia in
coke-oven gas to ammonium sulphate. One, the so-called Dr. M. R.
Tern process, went into operation at the Engelsdorf, Leipsig, works
of Thueringer Gas Ges. on July 1, 1929, and is expected to produce
some 37,000 metric tons of bulk ammonium sulphate (7,000 tons of
nitrogen) annually. Coke-oven gas is freed from tar in connection
with an ammonia separation; the latter is specially stored. Similarly,
sulphur is removed from the gas by being collected in iron hydroxide,
subsequently roasted for its sulphur-dioxide vapors, which are
specially electrolyzed to the trioxide. The NH3 and SOA are finally
combined in proper proportions to form (NHA), S(). The latter is
marketed under the trade name Elektro-Ammon.
HE IN RICH K () PPERS ("(). (ESSEN) (". A. S. PRO(“ESS
The Koppers cyanogen-ammonia-sulphur process resembles the

Tern process in certain particulars, separating ammonia, which is
bound direct to sulphur dioxide, forming polythionate and ammonium
sulphate, the former being further processed to animonium sulphate
and free sulphur. An experimental plant operating this process went
into operation in the Ruhr early in 1929. A commercial operation
is about to go into operation at the Georgschacht at Oberkirchen, to
consume some 600 tons of dry coal a day.
It is significant that, ammonia nitrogen sales in 1929, declined in
favor of the nitrate-nitrogen carriers. Ammonium sulphate sales
106846—30——3
16
fell, it is said, to 20 per cent of total artificial-nitrogen sales. The

I. G.'s ammonia-chalk saltpeter sold so well that its production was
increased.
Consumption of Nitrophoska, the complete nitrogen-potash-phos
phoric acid mixture produced by the dye trust at Piesteritz, increased
about 100 per cent over 1928. The 1929 sales were 25,000 tons in
terms of fixed nitrogen, or 155,000 tons bulk, against 12,000 and 74,000
tons, respectively, in 1928.
EXPORTS
Exports of ſixed nitrogen carriers, chiefly fertilizer, by Germany,

roughly put at more than 275,000 metric tons of contained nitrogen
annually, were as follows:
*ERMAN NITRogBN ExpoRTs
| 1920
-- - -
---— —
("ommodity
-
* total total valus lăţă

otal value e
amount States
Metric toms , Metric tons Marks Metric tons

Ammonium sulphate. 837, 257 726,814 134,009,000 13,327
Calcium nitrate, urea 395, 586 494,337
Nitrophoska 1-------- 46, 496 50, 831
Aminonium chl 35, 581 23, 637
Sodium nitrate- 32,422 69, 411
Nitric acid-------------------------------------- : 31, 153 29, 113
Potassium nitrate------------------------------- 23, 161 28, 535
Ammonium nitrate----------------------------- 12, 716 14,071
Ammonium carbonate--- 3.253 2,880
Nitrites------------------ 2,932 2,901
Cyanamide - - - - - - - - - - - - 363 1, 264
Sodium and potassium cyanide - - -----------, 4, 16S , 4,077 |
1 Includes miscellaneous phosphatic salts, such as disodium phosphate and ammonium phosphate.
INTERN.ATION AI. Nitro Gen. PACT
On June 26, 1929, it was made publicly known that German pro
ducers, led by the German dye trust, British producers, represented
by Imperial Chemical Industries (Ltd.), and Chilean nitrate producers
had agreed, in a 10-year contract, to cooperate, particularly along
propaganda lines. There has been no evidence so far that the agree
ment includes a definite production or market allocation division, but
such agreement in principle is certainly conceivable, as, for instance,
Chilean producers selling markets where sodium nitrate is distinctly
preferable in soil fertilization.
Directly thereafter, Norsk-Hydro, the Norwegian atmospheric fix
ation complex in which the German dye trust is interested through
investment and process operation (Haber-Bosch), joined the triangle
on a 25-year contract. Norsk-Hydro is raising its production to
90,000 metric tons of primary nitrogen annually, producing calcium
nitrate, nitric acid, ammonium nitrate, sodium nitrate and nitrite,
and “nitammonia chalk,” mixing ammonium nitrate and calcium
carbonate. The eventual value of Norsk-Hydro production is esti
mated at 130,000,000 crowns.
17
PRICE TRENDS
Coincident with the conclusion of the international nitrogen pact,

the German nitrogen syndicate announced a price decrease on July
1, 1929. This decline effected a maximum price drop on ammonium
sulphate of 6.6 per cent, compared with 1928–29 declines of 8.9 per
cent on calcium nitrate and 8.1 per cent on synthetic sodium nitrate.
Nitrophoska was dropped 50 pfennings per 100 kilos of bulk salt.
GERMAN NITRogFN SYNDICATE PRICEs
[In marks per kilo of fixed nitrogen delivered in Germany]
Leunasaltpeter, - -
Period
* calcium intº Yº sº." | nium nitrate -
1929–30 || 1928–20 | 1929–30 | 1928–29 | 1920-30 | 1928-29 1929-30 | 1928-29'

- – T. ------ ---- | -- -
July----------------- 0.80 0.85 1.03 --------- !--------------------

August--- - .. 8 .86 1.03 0.83 0.85 1. 13 :
§º.
CùOO6r------- ---
-- .82
.83 . 88
87 #;
. 04 | $4
. 85 ..86
87 11.1%#|
November - -- .84 . 89 1.04 1. 13 . 86 . 88 1. 14 1.23
December--- - . S5 91 1.05 | . 87 . 89 1. 14
January------- - 89 94 1.06 .80 .91 i.15
February–June - 00 95 1.06 . 92 .94 1.16 |
March–June --------|----------|---------- 1.07 | .93 .95 1. 17
I
--- - - - - - - - - - -
-
==
Ammonia chalk, - r -
----- Ammonia chalk, Ammonium
si;..."...a Calcium cyanamid DAVV 2 | chloride
Period --- | |
! i
1929–30 1928–29 1929–30 1028–29 1929-30 | 1928–29 1929-30 1928–29
------|-----— — | I
0.85 0. § 0.76 || 0 § (). 83 0. ſº t 0.7

. 86 . 86 .. 7 0 .84 .. 7 .. 7
. 87 . 87 .#. 81 85 . 78 80
.88 . . 88 . . 79 81 86 . . 79 81
. 89 . 89 . . 81 83 87 - 80 32
- .91 .91 .83 . S5 89 . 82 84
January-------------- .94 . .94 . 85 . 87 92 . 85 7
February–June------- .95 . .95 .86 . SS 93 .86 88
l -
1 Including bag.
* Deutsche Ammoniak-Verkauſs-Vereinigung, Bochum.
Nitrophoska prices are fixed until further notice at 25.50 marks

per 100 kilos for the I grade, 24 marks for the II sort, and 25.50 for
the III mixture. These three mixtures represent the following
analyses:
ANALYSES OF NITROPHOSKA
|
Kind N P2O6 K2O
Per cent Per cent | Per cent

Nitrophoska I.------------------------------------------------------------ 17. 5 13. 22. ()
Nitrophoska II-- 15.0 11.0 26. 5
Nitrophoska III--- 16.5 16.5 20. ()
These prices are consumer prices and apply to orders of 15-ton

(carload) lots delivered freight paid f. o. b. any German railway
station. The syndicate gets, after paying freight and discounts to
dealers, a net selling price that averages to 10 pfennigs per kilo
18
of nitrogen less. Proceeds to the works are even less, because costs
of maintaining the syndicate, propaganda, and financing stocks have
to be deducted.
Credits are allowed for 90 days on two-thirds of the amount of the
order. A discount of 3 per cent is allowed on cash payment exceedin
one-third of the bill. These terms apply, of course, only to j
Customers.
GERMAN POTASH INDUSTRY
The German potash industry sold 1,401,416 metric tons of pure

potash (K2O) in 1929, or 1.4 per cent less than the record sales of
1,421,387 tons in 1928. German agriculture, which takes currentl
around 60 per cent of this supply, suffered from the generally prevail
ing economic slump in 1929, while even force majeure exerted its
inevitable ill effect on markets; the early 1929 winter was unusuall
prolonged and severe, while the summer's drought tied up .
waterway transportation for a time.
World production at the same time may be estimated at 2,015,000
metric tons of pure potash, as the following approximate estimates
show. It is thus observed that Germany controls at present some
70 per cent of world production (or sales).
WoRLD PotAsh PRod Uction
| •l -
- - Metric Per cent - Metric Per cent

Country tons of total . Country tons of total
| |
|
|
Germany-------------------- | 1,400,000 69.5 | Spain----------------------- 25,000 1. 3
France--- 450,000 22.3 " Others---------------------- 40,000 1.9
Poland.--- 50,000 2.5
U nited St 50,000 2.5 || Total.----------------- 2,015,000 100.0
Comparative figures of German potash sales, with unit and total

proceeds therefrom, are given below, as detailed in the 1929 annual
potash report of the Gebrueder Dammann Bank K. G., Hannover:
GERMAN POTASH SALES
I Net pro-. Total | §§ pro- Total

". . .
Year | Total ceeds per
|Toolios Total net
prºcºs -
Year
r- ceeds peri Total
Total ||iº j net
| K2() | | K2O
— --—— — — — — — — —------|- -- - - - -
--—— ——
Metric tons | Marks Marks | Metric tons Marks Marks
1, 110,300 17. 07 189,500,000 | 15.01 186,000,000
843, 800 12.45 105,000,000. 15. 18 215,750,
1, 225, 500 12. 82 157, 100,000 (?) . (?)
1,090,800 13.47 118, 100,000 l
il
1 Including Alsace. * Not available.
GERMAN SALEs of CoMMERCIAL GIRADEs of PotAsh

[In metric tons of potash content]
Grade 1913 1927 1928
2----------- - -
Carnalite----------------------------------------------------------- | 7, 000
—---- 2,000
2,000
Kainite---------------------------------------- 457,000 221,000 247,000
20 per cent fertilizer- : 48,000 98,000 100,000
30 per cent fertilizer- | 19,000 , 53,000 60,000
40 per cent fertilizer | 265,000 550,000 620,000
Muriate----------- - 245,000 211,000 263,000
Sulphate potash.---- 54,000 78,000 111,000
Sulphate potash magnesia- -- 15,000 10,000 18,000
19
Although the German potash syndicate (by law) centralizes sales

for the producers, it does not deliver direct to consumers, but to
dealers, cooperatives, and mixed-fertilizer plants. In this dealing,
the syndicate grants rebates according to the size of orders. The
German dye-trust plant making the complete artificial fertilizer mix
ture, Nitrophoska, at Piesteritz, is the largest individual customer.
The largest wholesale customers are (1) Landwirtschaftliche
Duengerbezugs G. m. b. H., an agricultural cooperative, taking about
43 per cent of domestic consumption; (2) Duengerhandel G. m. b. H. :
and (3) Deutsches Kalikontor. The last two, straight trading com
panies, took 24 and 13 per cent, respectively, of 1928 domestic
deliveries. The rest goes to about 2,000 dealers and cooperatives.
In maintaining its organization, including sales, advertising, scien
tific research, etc., operating costs of the German potash syndicate
are estimated at from 4 to 5 per cent of the total proceeds from
sales, some 230,000,000 marks, including by-products exclusive of
returns for rock salt.
PRICES
Prices for German potash were unchanged in 1929; they were

last fixed in December, 1926, when they were increased by an average
of 10 per cent, amounting to 13.4 per cent above the pre-war average.
Prices to American importers are based on German domestic prices
plus freight. EXPORTS
German potash fertilizer exports, accounting for approximately

40 per cent of the country's supply (imports being, of course, nil),
were maintained at a slightly better rate in 1929 than domestic
sales, as may be gathered from the following oſlicial export figures,
Whatever improvement is evident is generally credited to the harmo
nious working of the Franco-German potash pact, eſſective May 1,
1926, with an initial 7-year term subject to renewals, dividing export
markets in the ratio of 70 per cent to Germany and 30 per cent to
France.
GERMAN POTASH FERTILIZER EXPORTS
| 1929
-
——— |
Kind 1928 i Amount
- Amount value §§
| States
Qarnalite, 9 to 12 per cent K-O-----------------------

|Mark *A r
l
tons Metric tons

435
Marks
-
10,000
Metric tons
------------
Kainite, 12 to 18 per cent------------ 194,304 5, 561,000 49,086
Potash ſertilizer, 18 to 42 per cent. -- 050 882, 411 G1, 186,000 233,071
Potassium sulphate------------------- -- -- 1 179, 854 32 ()0i) 52. ()27
Potassium chloride---
- 130, 216
Potassium nitrate-------- I 5,047
Potash sulphate magnesia | 11, 487
Total------------------------------------------ | 1,562,384 , 1,571,876 146,710,000 480,934
20
The German potash syndicate has prepared the following statistical

data covering purchases, production, and sales of pure potash:
PRODUCTION AND SALEs STATISTICs of GERMAN POTASH INDUSTRY
[In terms of pure potash]
i Sales
—-----, - –F–- – H -- --—

Year
Production:
in Inetric -
|
Domestic
- To the United
States 1 | To countries
other foreign
tons Total, in
| metric | |
|
i i
"* . Metric
tons | Per cent Mctric
of total tons
Per cent Metric | Percent
of total | tons of total
––––-- ——r -----

1918-------------- | 1, 135,985 1,001, 664 859, 716 85.7 |-------------------- 141,948 14.3
1919 – | 944, 779 $12,002 || 31,033 78.5 70, 129 8.6 104,840 12.9
1920-- | 1,297,396 : 923,643 : 689,391 | 74.6 83,602 9. 1 | 150,650 16.3
1921 – 1,054,213 921, 147 768,477 83.4 39, 515 4.3 113, 155 12.3
1922. - 1,510,910 1,295,544 963, 582 | 74.4 109,608 8.5 222,354 17. 1
1923-- i 1, 280,437 885,943 , 535, 106 | 60.4 | 104,623 11.8 246,213 27.8
1924-- | 1,014, 146 842,061 : 502, 456 59.7 111,636 13.2 227,969 27.1
1925- - - 1,572,327 1, 225,512 ſº, 164 62. 6 || 176,541 14.4 281,807 23.0
1026 1,200,047 1,099, $73 694,274 63. 1 136, 350 . 12.4 269,249 24.5
1927 1,518, 724 1,239,372 779,941 62.9 156, 195 12.6 303, 23 24.5
1928-- | 1,690,469
|
1,421,387 869, 289 61.1 | 165, 822 11. 7 || 386,276 27.2
!---——
1 Including Hawaii and Canada.
POTASH BY-PRODUCTS
Owing to the concurrence of the salts of magnesium with those of

potassium in Germany's extensive potash deposits, a sizeable by
product output occurs in the potash refining works. These by
products include bromine and magnesium chloride from carnalite
(KCl.MgCl2.6 H2O) and Glauber salts (sodium sulphate) and Epsom
salts (magnesium sulphate) from crude kieserite (MgSO4.H2O) and
hard salt (a mixture of potassium chloride, magnesium sulphate, and
anhydrite). Incidentally, rock salt is recovered in a sufficiently pure
state from certain German potash mines to be marketed without
further refining.
The potash mines yield some 2,399,700 metric tons of rock salt
annually, valued at about 40,000,000 marks, out of a total German
production, including evaporated salt, etc., of 2,909,400 tons.
The value of all potash by-products, including rock salt, produced
in Germany may be estimated at around 55,000,000 marks annually.
A special inquiry commission which published its report on the
German potash industry in 1929 gives official figures of production of
these by-products (to 1927, inclusive) for the first time, at least in
the postwar period. They follow:
GERMAN PRODUCTION OF POTAs.II BY-PRod UCTs
[In metric tons]
Magnesium chloride
Year Bromine - - - #. º
| Solid Liquid
- - - - -
— -- - - - - - .
765 | 21,866 78, 584 | 7, 205 92,207
643 27, 635 20, 139 , 43,144 75,385
1, 501 32, 159 69,052 | 51, 145 104,133
1,383 38, 143 60,255 I 85, 574 84,412
1,676 | 35,445 62, 745 | 109,080 125,376
| I
21
With expanding markets, increases are noted in every case except

liquid magnesium chloride. This may be due to the fact that only
solid MgCl2 is exported now. The value of these items, however,
increased from 4,000,000 marks in 1913 to 10,000,000 marks in 1926,
12,200,000 marks in 1927, and probably 15,000,000 marks in 1929.
The latest available export figures for these lines show a flourishing
outgoing trade, with the United States as an important customer.
It might be mentioned that while the German potash industry sup
plies bromine and the salts of magnesium virtually exclusively, addi
tional stocks of sodium sulphate are supplied by other than the giant
potash refining works at Merkers, Thuringia, belonging to the
Wintershall concern, which operates a cheap recovery by freezing
solutions of magnesium sulphate and sodium chloride for a yield of
sodium sulphate and magnesium chloride. The Merkers works,
however, may be reckoned as producing 109,000 metric tons of Glauber
salts annually, out of a total German production of 250,000 tons.
The following table shows German exports of potash by-products:
GERMAN ExpoRTs of PoTASH BY-PRODUCTs
| 1929
Product 1928 To the

| Amount Value United
States
- -
| -
| ---
Metric tons | Metric tons Marks Metric tons
Bromine----------------------------------------------- 184 i 23. 727,000 ------------
Magnesium chloride--- 36,585 42, 999 3,612,000 1,561
Sodium sulphate------- 120,393 | 177, 373 , 8,924,000 77,008
Magnesium Sulphate--- --- 93, 942 100,869 ; 4,385,000 5, 984
Salt ---------------------------------------------------, 880,092 909, 815 17,379,000 i------------
1 Includes evaporated Salt, etc.

TECHNICAL DEVelo PMENTS
Alert to the possibilities of extending its production scope, the

German potash industry, led by the dominant Wintershall concern,
capital 200,000,000 marks, and the Kali-Chemia A. G., capital
32,000,000 marks (merger of the Stassfurth-Friedrichshall potash
works and the former Rhenania-ICunheim company), attained an
important penetration into the wider fields of chemical processing of
potash in 1929. The most significant commercial development along
this line was inauguration by the Wintershall-Kloeckner combine at
the works at Rauxel of production of synthetic ammonia, nitric acid,
and potash ammonium nitrate, and at Sondershausen a pilot pro
duction of potassium nitrate and ammonium chloride in a 2-phase
operation treating potassium chloride with nitric acid for a potas
sium nitrate recovery, and then combining the by-product hydro
chloric acid therefrom with anmonia to get ammonium chloride.
This operation may be expected to extend further in 1930 to the
production of additional potassium nitrate and ammonium phosphate
by treating phosphate rock with nitric acid and potassium nitrate,
a 3-phase substitution as follows:
(1) Caap,Os--6 HNO3 +3K2SO, -3 CaSO, +2HAPO, +6KN(),
(2) H3PO, + KNO3 + cooling ==RNO3 (precipitate) + H3PO,
(3) HaPO, -H 2NH3 (H NA), H PO,
-
22
Still another promising development by the Wintershall company

is production of potassium sulphate from raw potash and magnesium
salts, without waste liquor yield; it is said that this concern may get.
a by-product magnesium metal, adaptable as is the German dye
trust’s “Elektron,” with over 90 per cent magnesium content, for
light-metal alloy.
Paralleling Wintershall development in this field, the Kali-Chemie
A. G., Berlin, is entering the market with a potash-phosphate ferti
lizer to be known as Kali-Rhenania-Phosphate. The former Rhe
nania-Kunheim works have been in the local market since the war
with so-called Rhenania-Phosphat, with 23 to 30 per cent P.O; and
40 per cent effective CaCO3, made by a special thermal treatment of
phosphate rock with limestone and phonolith or soda salts. Asso
ciation with the Neustassfurth potash works naturally results in a
combination with muriate of potash. An even wider extension of
its chemical interests is evident in Kali-Chemie's acquisition in
March, 1929, of Peroxyd-Werke Siegle & Co., capital 500,000 marks,
producing hydrogen peroxide primarily.
While the Rhenania-Kunheim department of Kali-Chemie A. G.
produces and markets a wide line of heavy chemicals, mostly unre
lated to potash, the Consolidierte Alkaliwerke zu Westeregeln affilia
tion of Germany's second largest potash concern, the Salzdetfurth
Aschersleben-Westeregeln combine, is interested in the so-called Rin
G. m. b. H., of the Riedel-deBaen company, Berlin, with speci
processes for production of caustic potash and caustic soda.
Even the Prussian State (Preussische Fiskus), which took over the
Anhalt potash concern (until 1953) in 1929, widened its field of chemi
cal production through the assurption of control of chemical com
panies formerly associated with Anhaltische Salzwerke, namely, the
Concordia chemische Fabrik, Leopoldshall, and Chemische Fabrik
worm. , Worster & Grueneberg, of Stassfort, specialized partly on
potassium carbonate.
CONCENTRATION OF PRODUCTION
While concentration and rationalization (standardization) have

marked development in the technical and mining and refining of
potash here in the past few years, notably since 1924, the organization
of the potash concerns has also been progressively tightened so that
six may be considered as functioning in production, having acquired
by purchase or lease the production rights of other smaller factors.
For instance, Wintershall A. G., of Cassel, has acquired production
rights of the Wilhelm Sauer concern (Lehrte, Hannover), and Salzdet
furth-Aschsersleben-Westeregeln (Salzdetfurth) of the Einigkeit con
cern (Ehmen, Hannover), of the Manfeld concern (Eisleben), and of
the Roechling concern (Halle on the Saale). Yet these acquired con
cerns still preserve their company identity and pay dividends on
proceeds accruing from deals made with the controlling concerns.
Reduced to their minimum, the producing concerns are as follows:
23
GERMAN POTASH ConCERNS IN PRODUCTION
Approxi
Company name Headquarters Capital º
| quota
Marks | Per cent

Wintershall A. G------------------------------- Cassel.---------------------- 200,000,000 1 41.011
Salzdetfurth, etc., A. G —l Salzdetfurth-- 72,000,000 2 26.887
Hurbach Kaiworke Magdeburg 125,000,000 16.418
Preussische Fiskus- IBerlin-- 3 140,000,000 * 9. 101
Kali-Cheinie A. G-- 32,000,000 4. 230
Deutsche Solvay wo 75,000, 000 2.
.1
;
1 Includes Sauer quota.

* Includes quotas of Roechling, Mansfeld, and Einigkeit.
* Includes coal, amber, etc.
* Includes quota of Anhaltische Salzwerke.
The recent drift of the above concentrations has effected consider

able change from the original division of the German potash industry,
which led in 1924 to the formation of two definitely opposed factions,
each striving for production (and influence) control of the industry.
These were the so-called “Anti-block” (officially known as Vereinigte
Kaliwerke G. m. b. H), led by the Salzdetfurth concern, on the one
hand and the Wintershall group on the other.
Acquisition in 1929 by the neutral Prussian State of the Anhaltische
(State) Salzwerke G. m. b. H. production rights until 1953 altered the
production-quota standing of the two groups.
While the number of German potash shafts increased from 205 in
1921, when the closing-down decree was promulgated, to 229 in 1928,
the number of mines operating decreased from 155 to 60. This
hººd the potash output per mine in 1928 to three times the 1913
evel.
Likewise, the number of chemical refining works reducing the crude
salts to refined products decreased from 92 in 1913 to 75 in 1921, to
31 in 1928, and 30 in 1929, increasing the annual output per unit from
9,600 metric tons K2O in 1921 to 43,000 tons in 1928.
GERMAN POTAs.II-REFINING PLANTs
Crude salts delivered to Average output per

- Plants, factories - I \lant
Year operat- - - - - - - - ------ -----—
| * : Commercial Potash con- Commer- Potash
| i salts t content
clal salts
|
i Metric tons Metric tons Mctric tons' Metric tons
75 | 6, 984,900 718, ---- -
92, 500 9,600
70 | 10,302,300 ** * * 146,100 15, 600
69 . 9, 687, 400 138,000 14,800
57 6,442, 600 . 113,500 : 13, 300
49 . 9, 623,400 195, 200 24, 100
34 7, 390, 900 213,300 27, 200
32 8, 626, 300 275, 100 36,600
31 10, 152, 200 1, 332, 800 327, 500 43,000
While the works produced only about 40 per cent of capacity in

1921, this was increased to 90 per cent in 1928, declining to something
over 80 per cent in 1929.
24
Out of 32 chemical plants operating in 1927, 2 had daily capacities

of 3,000 to 5,000 tons of commercial salts, 5 had from 1,500 to 3,000
tons, 15 from 1,000 to 1,500 tons, and 10 from 500 to 1,000 tons.
SALTS USED
The progress of concentration has also centered on salt mining with

a higher average pure potash content. This was increased from a
10.3 per cent average in 1921 to 13.6 per cent in 1928. Mines with
lower content of potash, as carnalite, have been closed, except where
special factors favored continuance of their operation, as unusually
pure rock salt, or by-product recovery possibilities.
Preference for sylvinite and hard salt with higher K2O content than
carnalite and more-favored geological conditions generally have shifted
production centers of German potash. The centers may be viewed
as six: (1) Hannover, (2) Magdeburg, (3) Halle, (4) Nordhausen
(South Harz), (5) Eisenach (Thuringia), and (6) south Germany.
Concentration has shifted production in the past eight years in favor
of Eisenach, Nordhausen, and south Germany and away from
Hannover, Magdeburg, and Halle territory. The chief center of
German potash production is in the Thuringian district, Werra
Valley, where mines of the Wintershall concern primarily are operating
chiefly hard salt.
The following percentage comparison shows the shift of production
since 1921:
Divisiox of GERMAN POTASH PRODUCTION by TERRITORIES
[Per cent of total production]
i i
i
Territory 1921 1928 Territory | 1921 1928
- - - - - -- - - -- -
-
- - ------- - - –––.
|
Hannover- - --
Magdeburg---
|
|
23.4 |
South Harz (Nordhausen).-------
1.6 || Eisenach (Thuringia)-------------|
18.9
15.9
| 20.0
34.3
Halle 4 5. 1 , South (hermany (Baden).--------- '-------- | 1.3
The average chemical composition of the crude commercial salts

operated by German potash mines is as follows:
Av BRAGE CHEMICAL CoM positio N or GERMAN POTAsh SALTs
In per cent)
Kind K2SO4 K(\l MgSO4 MgCl, Naci º'
!
Hard Salt ----------- 20. 5 : 20.8 2.3 46.3
Sylvinite- - - - - - - - - - - - - - - - 27.6 3.4 . 1.8 56.7 17. 4
Carnalite--------------------------------- --------- 1:1. 5 12. 1 21.5 22.4
CONCENTRATFS (IRE Fix ED) i
l
20 per cent potash -----------------. - - - - - - - - - - - - - - - - i 33.3 12.0 4.2 . 40.2 20. 9

30 per cent potash.--- - - - - - - - 48.6 10.2 4.2 26.2 30.7
40 per cent potash -- - - - - - - - - - - - - - - - tº. 1 5.5 1. 1 21.2 10.4
Muriate (90 to 95 per cent) - - - - - - : - - - 91.7 .2 .. 2 7.1 57.8
Sulphate (96 per cent). - .. 3 .. 7 i .4 .. 2 52.7
Sulphate (90 per cent). 1. (5 2.7 1.0 1.2 49.9
Sulphate potash magne 50. 4 - - - - - 28.0 -- - - - - - - - - 3.5 27.2
25
It is also significant to observe the progressive movement away from

ºlite
table:
in favor of hard salt and sylvinite, as shown in the following
SALTs USED IN GERMAN PotAsh PRODUCTION
[In per cent]
1921 1928
Territory
Carnalite Other salts | Carnalite 'other salts
|
|
40.5 ! 59.5 7.3 92.7
81.2 : 18.8 57.4 42.
78. 7 21.3 18.5 81.5
14. 3 85.7 10. 1 80. 9
As a matter of fact, while German potash mines yielded 47 per cent

carnalite and 52.7 per cent kainite and other salts in 1913, the cor
responding output in 1928 was 16.5 per cent carnalite and 82.5 per
cent kainite, etc.
Concentration and rationalization has also reduced the number of
employed in the mines and works. In 1913 (within present areas,
exclusive of Alsace) the industry employed 30,932 persons and paid
42,852,000 marks, or 4.38 marks per laborer and shift; in 1928 the
number employed was 21,489, who were paid 46,325,000 marks, or
7.57 marks per laborer and shift.
The German potash industry employed a total of 21,782 persons on
January 1, 1929, against 31,000 before the war.
PRODUCTION COSTS
The special commission of inquiry that investigated the German

potash industry and published its report in 1929 prepared a highly
illuminating set of detailed potash production costs in the three years
1926 to 1928. The investigation covered a considerable number of
average works, if not all. The figures of cost thus developed are
accepted generally as average production costs in the local industry,
but may be taken with considerable reserve.
GERMAN POTAs H PRODUCTION Costs
[In marks per 100 kilos K2O)
|
Item 1926 1927 | 1928 Iteril 1926 1927 1928
3. 61 3.22 || 3. 20 0.63 0.50

1.07 .92 .06 . 59
O' . 64
. . 62 .61 | . 60 80 ! .. 70
Materials (without improve- 2.79 2.79
ments) 3.34 | 3. 13 || 2.95 ——
Other operating costs ( .70 " .. 60 50 14.45 13.48
Interest charges------ 1. §§ 1.3% | 1.1%
1 Interest on production, mines damages, insurance, etc.
ESTIMATED PROFITS
Notwithstanding the low differential between published figures.

of proceeds to the works per 100 kilos of K2O (as, for instance, 15.18
marks in 1928) and the above production costs, an examination of
26
latest balance sheets of Germany's two largest potash concerns,

Wintershall and Salzdetfurth, controlling together 60 per cent of
German production, shows that these declare a clear profit showing
of about 30,000,000 marks. Were the potash concerns producing
the other 40 per cent as favored, the entire industry would represent
a profit showing of 50,000,000 marks. As this, however, can not be
accepted as the case, the more conservative estimate places profits
on 1928 business at from 40,000,000 to 45,000,000 marks, or about
$10,000,000.
GERMAN POTASH I,OAN
If during the first stages of rationalization of the German potash

industry, which began seriously about 1924, the producers took losses
(as seems to be confirmed by the inquiry commission's report), they
were, of course, carried over by the potash loan of £15,000,000,
authorized in 1925, that has been completely covered now in three
issues: £8,000,000 at 7 per cent, issued in December, 1925, at 94%;
£4,000,000 at 7 per cent, issued in May, 1926, at 97; and £3,000,000
at 6% per cent, issued in June, 1929, at 96.
The several German potash concerns have taken different portions
of the loan, partly to pay back short-term commitments but chiefly
to finance rationalization. Wintershall and Burbach, for instance,
have taken blocks of the loan above their proportionate share in
production; the Salzdetfurth concern, on the other hand, took less
than its proportion. CAPITAL INVESTED
The inquiry commission attempted to estimate the amount of

money invested in the German potash industry and concluded that
this was 1,400,000,000 marks before the war, much of which was lost
through abortive investments, sinking of unproductive shafts, etc.
When raising the British loan in 1925, the German potash syndicate
represented the industry as an investment of 580,000,000 marks, but
a revision of this figure, calculating costs of a potash works, placed
it at 850,000,000 marks in early 1928. Calculated again on the basis
of the purchase price of potash quotas, the figure of 700,000,000 marks
develops. The commission conservatively puts it at 600,000,000 to
700,000,000 marks. Deducting the British loan of 250,000,000 marks,
the German potash industry pays interest of the service of from
350,000,000 to 450,000,000 marks; at a maximum of 12 per cent paid
by Wintershall and Salzdetfurth, this yield would reach 54,000,000
marks; but, as mentioned above, all producers are not so favored and
do not pay 12 per cent.
GERMAN SUPERPHOSPHATE INDUSTRY
German superphosphate interests, confronted then with a com

paratively bearish demand (since changed) for their production in
contrast to the nitrogen and potash industries, met on January 28,
1929, in Berlin, concurrent with the annual Agricultural Exposition
sponsored by organized German farmers. Speakers from the super
phosphate industry dwelt on economic and scientific phases of super
phosphate fertilization, urging it as deserving of greater attention
now, in contrast with lowered demand as compared with pre-war
times.
-
27
While the German nitrogen and potash industries have boomed,

particularly in postwar years, superphosphate fertilization has de
clined markedly. Of course, the difficulties in financing of imports,
particularly in first postwar years, discouraged imports of phosphate
rock for acidulation, while demand for basic phosphate slag has in
creased greatly, partly because of its lower price and partly because
of its lime content, needed by German soil neglected during the war
and after to a degree of acid-sourness.
The fact is that while Germany produced 1,819,000 metric tons of
superphosphate in 84 superphosphate plants in 1913, it is producing
between 700,000 and 800,000 tons in 45 plants now. Imports of
929,560 metric tons of phosphate rock in 1913, of which 49 per cent
originated in the United States, contrast with 909,574 metric tons,
36 per cent from the United States, in 1929.
Furthermore, Germany's 1913 imports of 53,386 tons and exports
of 282,653 tons of superphosphate compare with 1929 figures of
116,343 tons imported and 145,726 tons exported.
It is also observed that while phosphate fertilizing in Germany in
1928–29 was about 2 per cent less than pre-war use, against 130 per
cent more in the case of nitrogen and 60 per cent more in the case of
potash, the progressive increase of phosphate fertilization does not
necessarily attach to superphosphate application alone, but rather to
basic phosphate slag, as mentioned above.
Kommerzienrat Kurt Klamroth, of Halberstadt, chairman of the
administrative council of German Superphosphate Plants (Ltd.) of
Hannover and administrative council member of German Superplmos
phate Industry (Ltd.) of Berlin, referred to the more favored position
of his industry before the war in contrast to its present slump. He
ascribed partly to the war and its blockade the drift away from super
phosphate fertilizing by the German farmer in favor of nitrogen and
potash, not to mention the shifting of the local farmer's choice in favor
of basic phosphate slag. With reference to charges that superphos
phate sours the soil, Klamroth pointed out that this gave urge to
organized counterpublicity inspired by special “superphosphate meet
ings” held January 27, 1927, at Berlin, July 12, 1928, at Konigsberg:
and in October, 1928, at IHeidelberg. While the superphosphate in
dustry is not seeking publicity as such, he continued, it wants to bring
about a better proportion of artificial fertilizer application and further
emancipation of Germany from its imports of some 4,000,000,000
marks worth of foodstuffs annually.
GERMAN ('HEMICAL MARKETS
The third largest export market for American exports in general,

Germany, is the third market for American chemicals also. While
it is difficult to delimit the extent of so-called chemical production
with exactitude—and German official foreign-trade figures fail to
describe these limits—it may be stated generally that steady Ameri
can chemical trade with Germany embraces sales primarily of naval
stores, benzol, sulphur, phosphate rock, carbon black, borax, paints
and lacquers, and chemical specialties—toiletries, medicinals, etc.
While roughly estimating American chemical sales to Germany
as around $20,000,000 annually, the office of the American com
mercial attaché in Berlin figures that a half-dozen American chemical
28
firms are manufacturing there, while another 50 or so are selling

through their appointed agents. A recent investigation by the
commercial attaché located 7 agents for American naval stores,
chiefly in Hamburg; 13 agents for American toiletries, chiefly in
Berlin; 9 for pharmaceutics, in Berlin; and 17 for heavy chemicals,
principally in Berlin and Hamburg.
It is also striking that American chemical processes are penetrating
Germany with such increasing force that a number of outstanding
new cases deserve special mention. These include an American
nitrocellulose-lacquer process now going into operation, a perfected
ammonia oxidation process, an advanced catalytic ammonia synthesis
promising to enter German production in 1930, the vanadium
oxide contact process making sulphuric acid, an American process
imparting a wood-grain surface to metals and other bases, and one
making plastics from formaldehyde condensation. The American
flotation system for metal extraction, the Cottrell precipitator, etc.,
have long been used in Germany.
It has been noted that in 1929 Germany imported 316,019,000
marks worth of chemicals (1,911,919 metric tons) against 311,518,000
marks (1,901,151 tons) in 1928. Exports were 4.3 times as great
in value and 3 times in tonnage, with a 1929 value of 1,374,543,000
marks (5,680,901 tons), against 1,314,588,000 marks and 5,547,561
tons in 1928.
The German classification of chemicals in its foreign-trade schedule
is insufficient, in so far as it excludes certain leading chemical items
imported from the United States, including turpentine, rosin, benzol,
phosphate rock, and borax minerals, which are assigned to other
groupings. Selected chemical items imported from the United
States in 1929, however, include the following:
Metric tons
Sulphur--------------------------------------------------------
Turpentine oil, pine oil
Phosphate rock-------------------------------------------------
Carbon black---------------------------------------------------
A striking increase in 1929 in the above purchases from the United

States was that of crude borates, resulting from the pioneer exploita
tion of crude borate mineral in the form of kernite in California, large
deliveries of which were recently contracted for by the German borax
cartel; at the same time, purchases of Californian refined borax
increased. An increase in imports of benzol, shared by the United
States, follows expanding motorization in Germany and the generous
use of benzol in mixture with gasoline as fuel for internal-combustion
engines. An increase in American sales of phosphate rock resulted
from sales pressure to compete better with North African rock, but
also from the circumstance that more superphosphate fertilizer is
being applied to German soil in lieu of basic slag and other forms of
prepared phosphates.
29
Among new market possibilities in Germany, toiletries and phar

maceutics offer a reasonable degree of promise; it has been mentioned
that the American commercial attaché's office in Berlin estimates
there are 13 agents already selling American toiletries and 9 selling
pharmaceutics in Germany, exclusive of certain specialties being
manufactured on the spot.”
The prospect of further penetration of the German market by
American pharmaceutics is especially promising, considering the
progress of the Western Hemisphere in this field, notable instances of
accomplishment being the discovery of insulin (Banting and Best),
the scarlet-fever serum (Dick and Dochez), etc.
In selling the German market, two paths are open, one by way of
the physician and the other by direct approach to the public. With
a population around 65,000,000, Germany has some 47,000 physicians.
Restrictions governing advertising to the public are no more
severe in Germany than in America. Advertising text must be
truthful and not exaggerate; it is forbidden to advertise cures for
diseases, but preparations for their prevention may be advertised.
The American firm can assign its general representation to a German
firm, preferably specialized in the line in question, and with suitable
organization and experience to promote it. In the sale of pharma
ceutics to the medical profession direct, it is well to consider the
advisability of permitting the German connection to use methods of
approach that are more familiar to it than probably to the American
company less familiar with local customs.
When an American firm finds it advisable to establish its own
German branch for exploiting the market, the best form is that of a
limited liability company (G. m. b. H.), limiting the risk of the home
company to the capital of the branch. German law prescribes a
minimum capital of this form of organization of about 20,000 marks,
of which only 5,000 marks has to be paid in. Foundation costs of
such an enterprise usually cost only 500 to 700 marks.
The customs duty on medico-pharmaceutical products, except
patent medicines and those containing alcohol, amounts to 1.75 marks
per kilo. This type of preparation, being essentially of light weight,
can thus be entered into Germany without any great expense; if
it is of great weight, however, consideration should be given to its
manufacture in Germany, its basic substance being shipped here, if
not available in this country, and its formula intrusted to a suitable
connection for local manufacture.
Preparations containing alcohoi are obliged to be made in Ger
many; the import duty on alcohol, no matter how much or little is
in mixture, is very high, as a tax must be paid to the German Federal
Alcohol Monopoly.
Bottles, cartons, and all other packings can be furnished in Germany
as advantageously, if not more so (owing to transport costs, etc.)
than in the United States.
Customary trade discounts amount to 20 per cent to the wholesaler
and 42% per cent to the retailer, on the consumer's price. The latter
discount, however, decreases with advanced prices.
* A discussion on marketing so-called chemical specialties in Germany is contained in Trade Information
Bulletin No. 605, German Chemical Developments in 1928. -
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APPENDIX
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1930, -
REGEIVED . COOPER, Director
MAY 19 1930
O. S. U. LIBRARY
KETS FOR SAWMILL
AND WOODWORKING MACHINERY
IN SCANDINAWIA AND THE
BALTIC STATES
AF
OS
285
£5m UNITED STATES

WASHINGTON : 1930

FOREWORD
With the exception of Denmark, the Scandinavian countries and

the Baltic States are characterized by extensive forest areas. These
have given rise to sawmill and woodworking industries which in most
of the countries are very important, if not the most important,
activities. Hand labor is commonly used in the Baltic States, but
in the other countries the sawmill and woodworking industries are
rather highly developed and there is a correspondingly active market
for high-grade sawmill and woodworking machinery.
In Sweden, and to a lesser extent in Norway and Finland, there is a
well-developed sawmill and woodworking machinery industry, which
supplies most of the domestic demand and, especially in the case of
Sweden, exports machinery to neighboring countries. Moreover,
considerable amounts of German and some English and French
equipment are also found, and there has been, in the past, compara
tively little demand for American machinery of that type, except
equipment for producing plywood, of which American exporters
supply an appreciable share.
While the market is highly competitive, it is believed that sales of
American plywood machinery can be increased steadily, and that
there is room for expansion in other lines. To assist in accomplish
ing such results, this bulletin describes the sawmill and woodworking
activities in the various Scandinavian and Baltic countries, outlines
the methods now being followed, shows the various types and origin
of the machinery in use, and gives practical hints as to the best way
to expand old and secure new business.
This bulletin is one of a series covering world markets for sawmill
and woodworking machinery which is being issued by the Industrial
Machinery Division of the Bureau of Foreign and Domestic Commerce.
That division desires to assist American machinery exporters inter
ested in these markets, and, on request, will gladly furnish additional
information.
MAY, 1930.
(II)
MARKETS FOR SAWMILL AND WOODWORKING
ſº IN SCANDINAWIA AND THE BALTIC
SWEDEN
By T. O. Klath, American Commercial Attaché, Stockholm
As approximately 60 per cent of the area of Sweden is covered with

forests, it is evident that the timber trade and allied industries in
the woodworking line, including lumber, manufactures of wood,
wood pulp, and paper, are of the utmost importance to the economic
life of the country. The total value of exports of lumber and products
of wood comprises more than one-half of the entire exports of the
country, and Sweden is one of the largest world suppliers of these
commodities. Lumber exports alone comprise about one-fifth of the
total exports, and almost 100,000 workers are engaged in the lumber
industry as a whole, including sawmill workers, tree fellers, and those
engaged in floating logs.
The principal kinds of wood in Sweden are pine and spruce, although
in the southern sections of the country are found various species of
hardwoods, including larch, birch, oak, etc. However, the hardwoods
are of very minor importance and can be disregarded in so far as the
lumber industry of the country as a whole is concerned. The only
one of any importance is birch, which is used for furniture, interior
finish, and general utility purposes, but principally for fuel.
Lumber is produced at a very large number of both large and
small mills located in all parts of the country, although the large
lumber export industry is more or less centered along the coast
of the Baltic Sea and the Gulf of Bothnia, the large mills being located
at the mouths of the many rivers and canals that transport the logs
from the forests to the mill locations. However, central and western
Sweden also have many large mills. According to official statistics,
the lumber production in 1927 amounted to about 8,500,000 cubic
meters, with a factory value of almost 400,000,000 crowns. (A
Swedish crown is worth about $0.27.) In 1928 exports of lumber
(sawn and planed) were valued at over 300,000,000 crowns. England
is the principal market for Swedish lumber, although other European
countries as well as many oversea markets are important buyers.
Practically all types of sawn and planed lumber are produced in
Sweden, and, in addition, nearly the whole range of miscellaneous
wood products, from shooks and lath to spools and wooden mailing
cartons, come from Swedish factories. A special branch consuming
a considerable quantity of aspen wood, much of which is imported, is
the match industry.
Practically all the lumber exported from Sweden goes by sea in
rather small steamers that make a specialty of this trade, while the
lumber is distributed within the country for domestic consumption
both by rail and by inland water routes. During the winter months,
when ice conditions make it impossible for steamers to enter Baltic
(1)
2
ports north of Stockholm and ports in the Gulf of Bothnia, a certain

amount of lumber is transported by rail and shipped from west coast
ports, principally from Gotteborg.
SAWMILL EQUIPMENT AND METHODS
There is a wide variety of machines used in the Swedish sawmills,

but, generally speaking, the large export mills build up their pro
duction around the use of gang saws, while circular saws are used in
most of the very small mills.
The Swedish gang saw is peculiarly fitted for sawing conditions
in the Scandinavian territory because of its accurate sawing and the
small amount of waste resulting. Several Swedish manufacturers
make this type of equipment and also export it to other countries.
No gang saws are imported, with the possible exception of a few units
coming from Norway, where similar machines are made. It should
be noted in this connection that the maximum length of logs is about
35 feet and the average top diameter 8 to 10 inches.
After the logs have gone through the gang saws, the resulting slabs
are edged on circular saws which also are employed for crosscut work.
Rip saws are sometimes used for small-dimension lumber. Equipment
for producing box shooks, staves, etc., consists of circular saws, etc.,
especially arranged for the purpose.
Practically the entire equipment of Swedish sawmills is produced
by several large domestic manufacturers. American sawmills equip
ment has practically no market because, in the first place, it is not
built to suit Swedish requirements, and in the second place, it un
doubtedly is true that the price of American equipment is much higher
than that of the domestic product.
Frame saws and other equipment have been improved from year to
year. The speed at which logs go through the frame saws is much
greater at present than it was 10 years ago, and the thickness of the
saw blades has been reduced. The high cost of labor in Sweden has
been an incentive to the development of labor saving devices of vari
ous kinds.
WOOD UTILIZATION
The tendency also has been to construct machinery of a type

that will reduce waste to a minimum. The question of reducing
the kerf also has received much attention, and this waste is less now
than in the past.
Wood utilization has been a prominent question in Sweden for
many years. A great many of the Swedish mills are combined with
chemical wood-pulp mills under the same ownership, and these pulp
mills absorb a very large part of the sawmill waste. It is difficult
to estimate the percentage of recovery in Sweden, but authorities
are practically unanimous in claiming that waste is less in the large
scale timber industry of Sweden than in any other country where
operations are conducted on such a large scale. A large group of
experts are continually studying the waste problem, and, from time
to time, new methods of preventing losses are announced and quickly
adopted by the lumber industry as a whole.
Various types of power equipment are found in Swedish sawmills,
but most of the plants obtain their power from steam generated
by sawmill waste. However, during the past 10 years the mills
3
have gradually been electrified, each machine being equipped with

its own individual electric motor. Sweden has large resources of
hydroelectric power. Coal-fired steam plants at sawmills are
unusual.
DRYING EQUIPMENT
Most of the Swedish sawmills depend upon air-drying their lumber

in large yards adjacent to the mills. The lumber is piled very care
fully, sometimes on edge, and ordinarily covered with a sloping
roof. The length of time required for drying depends largely upon
weather conditions, etc., but this method appears to have worked
out satisfactorily. Nevertheless, a number of the larger lumber
producers have, during the past few years, installed various types
of kilns. One large concern has made a few installations, employing
steam for heating and large fans to create circulation of the air within
the kiln. Some steps have been taken to develop a vacuum system
for drying lumber, but this method has not yet been perfected.
While there is a demand for an improvement in drying systems,
this question does not appear to be of particularly great importance
with the lumber producers. However, lumber used in the manu
facture of furniture, etc., is carefully dried.
WOOD WORKING INDUSTRY
The market in Sweden for woodworking machinery other than the

equipment required for strictly lumber mills is very large, although
most of the machines used are of domestic and German manufacture.
It should be noted that very many of the large lumber mills are also
equipped to turn out planed lumber both for domestic consumption
and for export on a large scale. These same mills also produce
box shooks, lath, barrel staves and heads, as well as many other
kinds of wood goods in a semimanufactured state.
Separate and distinct from the industries discussed above that are
classed as producing semimanufactured wood goods are found the
factories that employ the products of such mills as their raw ma
terials. In this classification are plants making doors, window
frames, panels, parquetry flooring, sectional wooden houses, furni
ture, and several special products, including cooperage, veneer, etc.
About 12,000 workers are employed in this branch of the woodworking
industry, which is largely centered in the southern third of Sweden.
According to American standards, most of these plants are rather
small, the total value of the output of joinery products not exceeding
30,000,000 crowns per year, about one-fourth of which is exported.
Although serious efforts have been made to standardize production,
these intºhave not attained the large-scale production of many
American plants and never will do so. Because of the extremely
low prices quoted by competitors for doors and other joinery supplies
on European markets, principally in England, the Swedish producers
have not been able to earn a reasonable profit on investment and, as
a consequence, are not financially able to equip themselves with
modern machinery. This is true generally, although two or three
companies have made a better showing.
A large number of fairly large and many small factories are engaged
in the manufacture of furniture of various kinds. At present about
85 per cent of the wood used by these plants is of Swedish origin.
4
Some of the furniture plants are equipped with many special machines
of American origin. However, generally speaking, many of the plants
are not able to invest the necessary amount of money to purchase
modern equipment, although the leaders of these industries seem con
vinced that American machines are the best obtainable. Most of the
equipment in these plants is of Swedish or German manufacture.
This is especially true of the smaller organizations, which obtain their
mechanical equipment at low prices and often on long terms of credit
from local and other European manufacturers. Furthermore, owing
to the fact that many furniture plants are located in small villages,
the cost of labor is not such an important factor, and it is possible,
therefore, to operate at a profit with less efficient equipment.
As previously mentioned, many of the large sawmills produce
staves and barrel heads for export. In addition to these, a number
of special plants are engaged in this line. Most of their production is
consumed on the domestic market. Many miscellaneous wooden
products are produced, such as bootlasts, clothespins, wooden toys,
etc. The total output of these industries, however, is not important.
In recent years several new plywood factories have been erected in
Sweden to meet the domestic demand and also to export. The greater
part of the machinery in these plants is of American manufacture,
although some of the machines were purchased in Germany or from
Swedish producers. It is estimated that the value of American ply
wood machinery sold in Sweden since 1925 amounts to approxi
mately $275,000. Both pine and birch plywood are produced, the
production of the former being the more important.
American equipment has gone into a new plant in Nordmaling
that is producing wall board by the explosive process. The license to
manufacture this product was obtained from the American owner of
the patents. This mill is now producing at the rate of about 5,000
tons per year, and it is planned to double this production in the near
future.
It is reported that recently a large Swedish lumber company pur
chased in the United States complete equipment for a large wall
board factory to be located at Domsjo, the deal involving about
$300,000. It is expected that this mill will be in operation before the
end of 1930.
Generally speaking, Swedish industry is fully aware of the necessity
of modernization and the use of modern equipment, and every effort
is being made to equip plants with modern machinery; however,
many of the plants are small and lack the necessary capital to modern
ize their plants. This trend toward increased efficiency is further
strengthened by the fact that Swedish workmen are among the best
paid in Europe. Very often, however, these plans are dependent
upon banks that have financed them. When the companies show
small profits, the banks ordinarily refuse to furnish the additional
credit necessary to finance machinery purchases.
Electric current is available in nearly all parts of the country, and
American machinery manufacturers can, therefore, expect to sell
equipment with individual electric drive. The types of current in
different parts of Sweden vary greatly.
5
FOREIGN TRADE IN WOOD WORKING MACHINERY
The extent to which Sweden is independent of foreign woodworking

machinery is shown by a comparison of the production value and the
import and export figures for this type of equipment. According to
official statistics, the factory value of woodworking machinery of all
types produced in Sweden during 1926 amounted to 7,555,964 crowns,
while in 1927 (latest year for which official statistics are available) the
corresponding figure was 7,330,614 crowns. During 1928 imports of
this class of machinery totaled 224,781 kilos, valued at 538,742
crowns, while exports during the same year amounted to 2,215,621
kilos, valued at 4,133,918 crowns. It will be noted that exports
exceed 50 per cent of the total production.
Imports and exports of woodworking machinery of various types,
as classified by Swedish foreign trade statistics, are shown in the
following tables:
IMPORTs of WoodworkiNG MACHINERY INTo SwedEN
I |
| 1926 1927 i 1928
Article and country of origin - —------ – T. –––

Quantity Value Quantity Value Quantity Value
Machines weighing 250 kilos or less: i Rilos Crowns Kilos | Crowns Kilos Crown.8
aners---------------------------- ! 263 985 944 3, 431 300 531
503 1,095 464 1, 268 1, 106 2,819

360 1. 355 -----------|----------
846 1, 761
1, 214
2,870 9, 297 1,921

Machines weighing from 250 to 5,000 -
kilos: - -
Planers— : : - | -
Denmark----------------------- : - 450 1,492 -----------!----------

Germany-- 492 , 1,320 10,377 16,741
Belgium-----
United States-- ----|-----------
690 759 | 1,740
, - - - - - - - - -- - - - - - - - - - - -- - - - - - - - - - -
1,804
3.75 15785
Total------------------------- - 5,214 11,401 1,632 3, 57.1 15,883 34, 331
Sawing Imachines— |
Norway 5, 166 6, 269 6, 450 6,358 2, 214 2, 117

Denmark-- - 400 1,161 |.................. 005 || 2,716
Germany---- 3, 157 6,250 3, 517 9, 842 , 4,039 | 13, 209
U
Great Britain--
nited States
- 1, 149
4,028
3, 71; i.-------------------- :
13,373 3, 290 11,211
3,971
18, 763
9, 500
63,409
Estonia--- -------------- - - - - - t 2,025 3, 402 ----------- !----------
France------------------------- | 336 797 -----------'----------
Total------------------------- 13,900 i 30,708 || 15,618 31,510 29,892 | 91,041

Other machines-- : I
Norway------------------------ 1, 310 4, 1% ------------------- 3, 650 7, 563

Denmark 500 1,834 3, 574 9,047 943 3,029
(Hermany:- -I 38,946 74, (57 46, 643 86, 502 63,982 115,330
Great Britai tru . 302 6,068 14, 328 9,329 26, 738
U nited State: - 5. 68: 50, 27 5, 602 21,806 30, 851 109,016 |
Fstonia----- -- - - - - - - - - - - - - - - - - - - - - - 670 1, 530 ----------- '----------
Netimerlands i--------------------- l 2,782
Other countries - - - - - - - - - - - - 1, 180 1, 519 2,331
i
Total------------------------- 57, 119 132,625 63,737 134,732 266,789

6
IMPORTs of WoodworkING MACHINERY INTo SwedEN–Continued
1926 1927 1928
Article and country of origin --- | |

Quantity Value |Quºus Value | Quantity | Value
Mºes
1IOS:
weighing more than w |
l
Planers— | Kilos . Crowns Kilos Crowns Rilos Crowns

Germany----------------------- ,--------------------- 8, 236 10,348 |-----------|----------
Total------------------------- :--------------------- 8.2% 10,848 -----------|--------- -
Other machines— |
United States------------------ * 470 -----j-E-|---is-six- 28, 535 61,205
Germany----------------------- !--------------------- ! 31, 569 49,843 32,885 60,482
Total------------------------- 18,064 58,470 31,569 49, 843 | 61,420 | 121,687
NotE.-Imports of veneer machinery from United States are included under miscellaneous machinery
heading and are not shown in above table.
ExPORTS OF WOOD WORKING MACHINERY FROM SwedEN
| |
| 1926 1927 i 1928
|
Article and country of destination - - ----- - - - -
Quantity Value | Quantity Value Quantity Value

i
- - - - - --— — — —l ------ - - - -
Machines weighing 250 kilos or less:

Planers— Rilos Crowns Rilos Crowns Kilos
Norway-
I)enmar
- -
3,942 2,800 2,897 7,064
Russia in Europe
Finland---------- -, - - - - - - 1,859
Other countries------------ 1,310
Total. ------------------ 5,000 5, 11 14,409 3, 169

Sawing machines—
Norway-------------------- I 944
IDenmark
Estonia
Latvia.
Poland.--
Germany - - - -
Netherlands
Austria------
Argentina
Finland----------
Russia in Europe - -
Colombia--------------------------------- f() ' 2, 543 8, 194
23,518 50, 156
9,470 7, 200 2,281 5, 112

12,445 3.050 6, 52(5 3,595 6, 272
200 1. (40 -
668 2, 464
1,588
Russia in - 7,
Germany - - - - - - - 443 1,920 ----------- ----------
Colombia- - - - - - - - - 906 2,612 765 2,956

Other countries - - - - 2,071 . 5,968 1,662 : 4,097 4, 562 11,555
Total.-------------------- i 14, 267 32,975 13,000 : 34. 610 11,203 25,895
Machines weighing from 250 to |

5,000 kilos:
Planers--
Norway 32,051 48, 147 27, 719 | 30,797 29,075 41,402
I)enmark- - 8, 585 14,835 20, 30.1 ! 37, 139 17,000 28,080
Finland.---------- -: 98,000 57, 197 114, 66 78, 75 i 141,390 229,771
Bussia in Europe 28, 112
Latvia----------- " . 13, 189
(hermany- 32, 75S - - ; : | 33, 510
Netherlands 23, 876 55, 003 | 32, 433 040 64,085 126,092
7
ExpoRTs of Woodworking MACHINERY FROM SwedEN–Continued
|
1026 1927 1928
Article and country of destination --- -
I Quantity Value Quantity Value Quantity Value

|
| l
Machines weighing from 250 to
5,000 kilos—Continued.
Planers—Continued. Kilos, Crowns | Kilos | Crowns
Great Britain-------- •x, - 12, 830 ; 27, 510 24,618 50,690
France------- - '-º', 866 4,763 17,970 || 37,555
Spain------ 85 . ----------- `----------
Switzerland-- 5,033 11,016
Czechoslovak -- 8, 127 18,984
Yugoslavia---
Greece-------
Japan.----
Mexico.-----
Venezuela--
razil------ |
Uruguay----- 2 14,626 |
Argentina---- r 23,480 43,277 20, 714 33,041
Chile--------- 5, 8 *** 5, 520 10, 543 2,656 3,848
Colombia---- - 14,904 | 27,435 30, 388 54, 109
Bolivia----- 3, 693 - 5,030
Australia----- 20, 622 --- 4,319 |
New Zealand---------------. “SU 1, 867 i-----... --'------------
Estonia------ 1,415 |
I)anzig------- 2,700
Belgium - - - - - 4,661 -
Portugal.----- 1,486 |
Austria- - - - - - 2,744
Bulgaria----------- 2,400
British South Africa 1,777 ;
Other Africa.----- 1, 320
British Fast Indi 525 |
Central America--- 840,
1, 207
15
|
Total-------------------- | 333,397 ||| 636,323 || 345,538 |Tººl,592 TA55,312|| 849,613
Sawing machines—
Norway-------------------- i 40.5% 65,560 24,411
37,506 20,715 39,945
- |
Denmark- 5, 97 10, 103 6,097 ii. 736 Tā,084 10,044

|
163, is 10% ºf 210, 538
i
224, 129 133,471 || 320,992
I 1,828 3, 103 5, 530
| 91,279 5,605 |
11, 417
28,857
17,068
12,211
24, 212
11,300
4, 578
12,883
------------ - 7,336 10, 110

Total-------------------- _407,752 770,322 | 419,024 875,972 74,033 939,660
107931–30–2
8
ExPORTS OF WOOD WORKING MACHINERY FROM SwedEN–Continued
1926 1927 1928
Article and country of destination

Quantity Value | Quantity Value Quantity Value
- -
|
i |
Machines weighing from 250 to i |
5,000 kilos—Continued.
Other machines— Rilos Crowns Rilos Crowns Kilos Crowns
14,962 40, 752 12,726 21,060 25,627 39,691
9,053 15, 226 2, 557 4,464 6,523 18, 129
24,905 42, 561 48,973 90,799 68,059 115,414
Russia in Europe-- 71, 824 147,425 16,806 7,840 -----------|----------
Poland 2,475 4, 200 -----------------------|---------------------
Netherlands 8,434 17, S63 2,587 5, 108 3,099 6,811
Belgium --- 247 1,401 -----------------------|---------------------
(łreat Britain
Uruguay
Argentin
Iceland I 630 1,996

I)anzig 1,961 4,518
German 4,520 12, 137
570 544 |
Rumania
3,3634. . .3%
British South Africa- - -
Philippines
Central America
Chile - - - - 3,789 8,007
German 3,642 8,832
France--- 1,080 2, 199
Portugal 2,495 7,360
French East Indies - - - - 1, 540 3,490
Venezuela 1,073 2,701
7,336 10, 110
238,458 476,952
Machines weighing more than 5,000

liOS:
Planers—
i,094.
154,617 166,102
Sawing machines—
Georgia
Other machines—
Russia in Europe
Latvia-------
Denmark
Great Britain
France----
9
ExpoRTS OF Woodworking MACHINERY FROM SwedEN–Continued
1926 1927 1928
Article and country of destination --- ~~ I- -- -- - |

Quantity | Value Quantity Value Quantity | Value
Machines weighing more than 5,000 |

kilos—Continued. i |
Saw frames— Kilos Crouyms Kilos Crowns Kilos Crowns
Norway 27, 533 51,316 2,797 8, 101 17,717 22,639
Finland 172,173 268, 119 221, 282 384,915 269,805 447, 808
Russia in 347,279 619,004 || 571,990 1,018,454 232,946 425,526
oland-- 3, 130 5,441 3, 172 , 625 37,025 i 62,979
German 11,850 21,390 34,564 52,698 44,905 83, 928
Netherland | 2,828 56,717 | 73,288
Irance---- -------- *
Austria--
China--- 1 :
Estonia - 14, 775 43,633 58,843

Great Britain-- 10,981 ---------------------
Czechoslovakia-------------|----------------------------------|------------ 56,023 95,827
Colombia------------------|---------------------------------------------- 7,815 9,07
Other countries 1,545 542 1,611
Total-------------------- 611, 001 1,043, 509 | 857, 558 1,506,844 822,819 1,374, 124
MARKET FOR AMERICAN MACHINERY
Most of the difficulty in selling American woodworking machinery

in Sweden arises from price and credit considerations. Most Swedish
and German equipment, although considered lower in capacity and
efficiency, sells for much less than similar American machinery.
Swedish producers are in a position to grant terms as long as two
years, and sometimes it is possible to obtain a renewal at the expira
tion of that time. Both Swedish and German manufacturers demand
a down payment of one-third of the selling price.
Local dealers are of the opinion that many more American machines
could be sold if some means of granting long credits were available
and if such credits would not cost the buyer too much. Both Swedish
and German manufacturers are selling equipment in Sweden under
hire-purchase contracts which enable them to repossess the machine
in case payments are not made in accordance with agreement. While
conditions affecting the sale of woodworking machinery are entirely
different from those involved in selling high-priced automobiles, the
fact remains that the large sales of the latter in Sweden would not be
possible without making use of the part-payment plan of financing.
...An attempt is made in the following to summarize the market possi
bilities of American woodworking machinery in various main groups
of the Swedish industry:
Sawmills.--It is not ordinarily possible for American machines to
meet the competition of domestic manufacturers for strictly sawmill
equipment, such as gang saws, circular saws, dry kilns, conveyors,
etc. Those mills producing planed goods use Swedish planers almost
exclusively. The larger modern American planers are said to have too
great a capacity for the small output of the average Swedish mill,
where there is practically no demand for the high speeds characteristic
of the American product. Efforts have been made to sell planers, but
Without success. Another objection appears to be the local preference
for a plane-box type of planer instead of the cutter-box type. A few
10
of the larger sawmills, however, seem to be interested in American

band saws of the most modern type.
Joinery mills.-All doors made in Sweden are of the tenon type,
it being impossible to produce the dowel type because of the large
number of knots found in Swedish lumber. Attempts to produce
dowel-type doors have shown that the waste of material because of
knots is very great. The entire joinery industry is in poor financial
condition, owing to severe competition among the mills for domestic
business and also to the competition of American doors in Great
Britain and other export markets. The banks refuse to grant further
credits to these concerns for the purchase of equipment. Further
more, the long credit granted by domestic machinery producers
enables them to secure nearly all the business. A few American
made molders and sanders and also a few special machines are in
operation at one or two of the largest joinery plants. There should be
a chance to sell some American equipment for making oak parquet
floor blocks, as the production in this line is increasing. However,
for the reasons stated, dealers feel that there is little prospect of
increasing sales of American joinery equipment.
Furniture factories.—Undoubtedly the furniture branch of the
Swedish woodworking industry offers the brightest sales prospects.
American equipment in these plants includes sanders, scrapers, cut
off saws, boring machines, carving machines, gluing machines, ri
saws, etc. While the excellence of the American product is admitted,
sales are handicapped by price and credit considerations. Although
certain machines in this classification are made in Sweden and Ger
many, most of them are not considered so efficient as the American.
Plywood factories.—-There are nine veneer plants in Sweden. Three
of these are fairly large and are equipped with modern machinery,
most of which is of American make. Of the three most important
plants, one has approximately 95 per cent American machinery, the
second about 80 per cent, and the other about 50 per cent, the remain
der of the equipment being Swedish and German. The less important
plywood factories use German and Swedish machines almost exclu
sively. There does not seem to be any expansion contemplated in
the plywood production, and sales of American machines will be
largely confined, therefore, to replacements. -
Filing-room equipment.—American machines for filing saws are

acknowledged to be highly efficient, and it is possible that some of the
larger sawmills will purchase American equipment in the near future.
Portable woodworking machinery.—Although German competition is
keen, it is believed that American portable saws, planers, etc., would
find a small market provided proper sales representation is obtained.
[Lists of the largest sawmills, builders' joinery manufacturers, furniture man
ufacturers, and miscellaneous woodworking industries in Sweden, as well as of
the most important importers and agents handling woodworking machinery
there, are available in the Commercial Intelligence Division of the Bureau of
Foreign and Domestic Commerce, Washington, D. C.] -
NORWAY
By Marquard H. Lund, American Commercial Attaché, Oslo
Lumber processing is one of the oldest Norwegian industries. The

first sawmills are said to have been established about the year 1500.
From that time until the second half of the nineteenth century, the
11
sawmill industry was probably the most important in Norway, but

since then the paper and pulp industry has developed very rapidly
and has replaced the sawmill as the principal user of logs.
SAWMILL INDUSTRY
In the 1929 production statistics, sawmills are classified as follows:

Small sawmills---------------------------------------------------- 1, 607
Other sawmills---------------------------------------------------- 135
Sawmills, also operating planing mills-------------------------------- 350
Total------------------------------------------------------ 2, 029
SMALL SAWMILLS
The small sawmills are found in every Norwegian forest district,

but especially in the interior of southeastern and eastern Norway.
These mills are generally operated by the forest owners themselves.
Forest operation that merely cuts the tree and sells it as a log is no
longer profitable. It is only done where floating provides cheap
transportation. These small sawmills are usually located near a
railroad station. During the last few years trucks have been used
more and more for transporting lumber, especially in eastern Norway,
so that the location of the mills is no longer entirely dependent upon
proximity to railroad facilities.
Some of the mills are portable and some of a more permanent
character, although even the latter are often housed in open sheds.
In both cases, however, the machinery used is similar, usually a
double circular headsaw with the necessary auxiliary equipment.
Some of the mills also have machinery for cutting barrel staves. In
that case, the equipment consists of saw, trimmer, resaw, edger,
trimmer for barrel staves, filing machine, and, in some of the better
mills, conveyors. Gasoline engines and steam engines provide power
(of 8 to 10 horsepower), as a rule. Steam engines are usually portable,
utilizing sawdust as fuel.
The circular saws used are thinner at the edge than in the center.
They are not as accurate in operation as gang saws, and the waste is
considerably more, which is not such an important factor in these
small mills, however, where the cost of stumpage is rather low.
Consequently, the owners do not make any special effort to eliminate
waste.
The very character of these small mills makes rather difficult the
selling of up-to-date American machinery, which justifies its price, in
comparison with European, only on a production basis. High-speed
production is not an advantage in Norway.
The market for equipment is quite large, but it is not particularly
promising for modern American machinery. Norwegian and Swedish
manufacturers cater to this business and practically control it. So
far, at least, manufacturers from other countries have secured very
little, if any, business. The advantages usually claimed for American
machinery make no special appeal in Norway. High-speed produc
tion is not an important factor, as already mentioned. Neither is
labor-saving. Human labor is readily available—in fact, there is
generally a surplus—and wages are low. Conveying machinery is
seldom used. Mills of more permanent character, located near
water, use conveyors for taking the logs from the water to the mill,
12
but in the mill the logs are moved by hand. Piling and loading is
also done without the use of labor-saving devices. The only mechan
ical device sometimes used is a track from the piles to the loading rack,
with trucks drawn by a horse or pushed by hand.
Domestic woods are used; pine and spruce almost exclusively, with
a very small percentage of birch and oak. The usual sizes turned out
are 3%, 3, 2%, and 2 inches thick, and 11, 9, 8, 7%, 7, 6%, 6, and 5%
inches wide. Short lengths predominate; 14 to 16 feet is a rather
high average. -
The stock is always piled in the open and air dried. It is shipped
green only when sold to one of the few planing mills operating drying
kilns. Most of the production from the small mills is sold to planing
mills or the domestic building trade. Very little goes into the export
market. The capacity of each mill is not large, and as they are
operated only part of each year, no production statistics are available.
OTHER S.A.W MILLS
The 135 mills classified as “Other sawmills” generally cut for

export. Most of them are situated on the coast, especially on the
western side of the Oslo Fjord. . As a rule, these mills are smaller
than those in Sweden and Finland. Operators claim it is more
profitable than operating larger plants, the reason being that Nor
wegian mills generally do not have forest areas of their own but buy
logs in the open market. An annual production of 6,000,000 to
8,000,000 board feet is considered a fairly good average for one
of these export mills.
The cost of stumpage for these mills is comparatively high, so that
it is of paramount importance to have machinery utilizing the log to
the fullest extent. Speed is of secondary importance. For that
reason, machinery of Norwegian and Swedish make is preferred,
having been developed along these lines. Auxiliary equipment, such
as filing machines, conveyors, etc., are of other origin.
Gang frame saws are used exclusively, which cut the entire log
at one time. The American method of cutting a log, so as to get as
much clean lumber as possible out of every log, is unknown in Nor
way. Perhaps one reason is that the wood is very knotty, making it
almost impossible to saw out a clear piece. Gang frame saws are
claimed to be the most practical for local conditions.
Practically all of the mills which generally cut for export use
conveyors for taking the logs from the pond to the saw. Rail systems
are popular, and piling devices are used also, but hand piling is still the
most common. Drying kilns are not used. The lumber is always
air dried, requiring from two to six months seasoning. -
Pine and spruce is the principal raw material. The sizes produced
are the same as in the small mills, but 1%, 1%, 1, and %inch in thickness
and down to 3 inches in width are common sizes.
Profitable operation depends to a large extent upon utilization of
waste, and these mills are very efficient in this respect. Everything
is cut into something of commercial value, and the rest is used or
sold for fuel.
Official 1927 production statistics give figures for 211 mills with
more than 12,000 hours per year. These 211 mills produced 720,864
cubic meters, with a value of 30,438,936 crowns. Of this total,
13
approximately 453,000 cubic meters were for sale. The balance was
used as raw material by planing mills and other woodworking
industries.
The first Norwegian planing mill was constructed in 1863. The

industry developed rapidly, until 368 mills were in operation at the
end of 1927. The greater number of these are located on the eastern
side of the Oslo Fjord and in the Drammen and Larvik districts on
the western side. These planing mills are mostly operated in con
nection with sawmills. Those that are not, buy their lumber re
quirements mostly from the small sawmills.
Planing mills work mostly with domestic woods, pine and spruce,
which is dried somewhat longer than the rough stock for export and
contains about 25 per cent moisture.
The equipment used is usually modern and eſſicient, designed for
the greatest possible saving in raw material. It generally consists of
double or single circular resaws with blades as thin as 22 Birmingham
gage, trimmers, edgers, planers, piling machines, etc. Swedish and
Norwegian machinery has the preference. Only the auxiliary equip
ment is of other origin.
The Norwegian planers are made in several sizes for high-speed
operation.
There are 21 box factories in Norway which use machinery made in
Norway. Some box factories are also operated in connection with
sawmills. Production in 1927 was as follows:
Crowns
Box shooks made in sawmills----------------------------------- 1, 944, 987
Box shooks made in independent factories---------------- 1, 692, 032
Large boxes------------------------------------------ 1, 193, 934
Small boxes-------------------------------------------------- S21, 708
There are 21 factories making wooden barrels with Norwegian
machinery. In addition, some of the larger sawmills make barrel
staves as a by-product. Total production of barrels and barrel
staves amounted to approximately 2,500,000 crowns in 1927.
One plywood and veneer factory is operating in Norway, in which
90 per cent of the equipment, including drying, is of American
manufacture. Another similar plant is now being contemplated.
MARKET SURVEY
The sawmill industry of Norway, divided into two distinct classes,

presents two separate problems for the American manufacturer of
machinery.
The small mill can hardly be considered a prospect. It has been
suggested, however, that an efficient portable mill might find a market
in Norway. Such a mill, operated with a track-laying type of tractor
so that it could be taken from place to place even during the winter,
might be made to pay if sold to people who would contract to saw the
annual cut of forest owners that do not have their own equipment.
On such a basis, low cost of operation would offset a higher initial cost.
Logging is carried on during the winter months. Farmers in the
wooded districts supplement the scant income from their farms by
cutting the trees and taking them out of the forests on sleds, drawn by
horses. The logs are piled on the ice and floated to the mills in the
spring. A certain percentage is shipped by rail also.
14
Sawmill machinery used in Norway would probably be considered

obsolete from the American point of view, but it seems to answer the
purpose. The principal advantage of American machinery, high
production at a low cost per unit, does not seem to make much impres
sion, and it is pointed out that production with such equipment would
be so large as to make it necessary to use the plants only two to three
hours a day. Furthermore, much of the Norwegian lumber exports
are shipped rough sawn to England and are finished and manufactured
into moldings, etc., in English woodworking plants.
Generally speaking, the industry can not be called prosperous, and,
as a result, funds for the purchase of new equipment are not plentiful.
Imports of woodworking machinery into Norway for the last three
years by countries of origin are as follows.
IMPORTs of Woodwork ING MACHINERY INTo Norway
(In crowns]
Country of origin 1026 1927 1928
Sweden.------------------------------------------------------------- 246,400 373,800 351,000

German v.--- - - - 566,700 405, 200 | 818, 700
United States- - - - - - - - - - - --- 100, 800 ------------------------
Total, including others--------------------------------------- 1,013, 700 924, 700 . 1,323,300
The reason Germany shows up so well in these figures is that paper

and pulp machinery are included with woodworking machinery in the
official records. The imports from Germany are mostly paper and
pulp machinery. Sweden is now the most important foreign supplier
of woodworking machinery.
The industry is not expanding at present. In fact, competitive
conditions in the lumber industry generally, including sawmilling and
woodworking, have been such for several years that production and
exports have declined from year to year. The 1929 exports show
some increase over 1928, but the reverse tendency was in evidence
during the previous years. Greater profits can be made in converting
logs into paper and pulp, and expansion is more in that direction
and will probably continue to be so for some time to come.
The possibilities for selling American woodworking machinery do
not appear very great, but it might be possible further to stimulate
sales, although the usual method of doing it through local agents only
does not seem very effective. A properly trained sales engineer
cooperating with the agency should be able to do more, as his time
could be divided between Norway, Sweden, and Finland, working with
the agents in each country.
[A list of Norwegian dealers in woodworking machinery is available in the
Commercial Intelligence Division of the Bureau of Foreign and Domestic Com
merce in Washington]
DENMARK
By H. Sorensen, American Commercial Attaché, Copenhagen
The total Danish forest area covers 375,000 hectares, of which about
30 per cent is beech, 5 or 6 per cent oak, and 60 per cent pine and
spruce, the latter planted. The forest area has increased appreciably
during the past 25 or 30 years, owing to careful reforestation and to
|
15
the gradual planting of heather land and other waste land with pine
and spruce. A number of these plantations are now gradually coming
of age, and can be used for timber, boxes, boards, and other purposes.
The beech is the Danish national tree and, besides being used exten
sively for firewood, is also used very extensively for the production
of barrel staves and bottoms and for furniture. Shipment of logs is
mainly by horse drag or, in a few cases, by tractor; then by truck or
railroad. There is practically no floating.
SAWMILL INDUSTRY
With so small domestic forest resources, which to a large extent

consist of firewood rather than of wood which can be used extensively
for production of lumber, it is, of course, natural that the sawmill
industry is of correspondingly small proportions. While there are a
number of sawmills in Denmark, they are all very small and usually
to some extent definitely connected with or a part of other industries,
such as wooden-shoe, furniture, box, or barrel factories. Few, if
any, of the Danish sawmills are of the forest mill type, but rather a
combination of sawing, planing, box making, or other industries.
Of true sawmills there are only about a dozen, and most of these are
relatively small.
Of the machinery used in Danish sawmills, the block saws are chiefly
of German manufacture. Band saws and circular saws are chiefly
of Danish or Swedish manufacture. Molding machines and fret
saws are partly of Danish and partly of Swedish origin. Two types
of carriages and feeding devices appear to be in use. The most
popular is described as having a leather packing guide. This type is
chiefly of Swedish make. The other type, which is chiefly of German
manufacture, and which is used but little, is equipped with a ball
bearing guide.
The Danish sawmills, on the whole, apparently find their present
equipment satisfactory. . Most of it has been installed during the
past 8 or 10 years and is, therefore, considered quite modern. In
view of the scarcity of lumber supplies and the high cost of labor, there
is, however, unquestionably always a demand for machines promoting
the greatest possible economy, both of lumber and of labor. The
width of the kerf is of relatively small importance as only smaller
quantities of higher-priced logs are cut in Denmark.
The logs and lumber are generally moved by hand power. Only
a few of the largest sawmills have cranes, loading devices or other
conveyor facilities, and the samll size of the average mill tends to
restrict the potential market for such devices.
Wood utilization is not much discussed in Denmark. The small
ness of the forest resources has long since made economy in connec
tion with lumber products an absolute necessity. It is impossible to
say just what the percentage of recovery is, but it is known that prac
tically every stick of any value whatever is used for some purpose or
other.
The majority of Danish sawmills use steam as power, and the steam
boilers use chiefly lumber waste as fuel. The other woodworking
industries, as a rule, use electricity as power.
The lumber produced in Danish mills is usually sold more or less
seasoned. The sawing takes place partly under cover and partly in
open air. So far, kiln drying has not been used to any extent, but
16
during the past couple of years a number of Danish mills have experi
mented with German kilns operating on the chemical and steam prin
ciple. A certain chemical was spread on the wood, after which it was
subjected to steam heat for 24 to 36 hours. The particular advantage
of these kilns was supposed to be the quick action. The equipment
apparently did not give satisfactory results, but the interest shown by
Danish mills in it tends to indicate that there is a real need and a
growing demand for moderate-priced effective kiln equipment. The
kilns used are chiefly of the steam-heat type.
The Danish woodworking industry comprises a relatively large

number of small and medium-sized establishments, but no really big
plants. There is apparently at present a gradual though not very
pronounced trend toward larger production units. The industry,
taken as a whole, is of very modest proportions. It is based chiefly
on supplying the domestic demand arising from a population of
3,500,000 with windows, doors, and other building woodwork, and
also supplies the larger share of furniture and store fixtures sold in
Denmark and a smaller share (estimated around 50 per cent) of the
box and barrel material used there.
Practically all the plants are small; there being perhaps less than a
dozen of medium size and practically none which, according to
American standards, might be considered large.
The machinery used in larger Danish woodworking plants is of com
paratively modern design, many of the factories having gradually
modernized their equipment since the war. In a rather large number
of the smaller plants a considerable part of the mechanical equipment
is, however, unquestionably more or less obsolete, largely because of
the fact that the financial outlay involved in modernization is not
obtainable or justified by the business outlook. In the case of these
small operators it is, therefore, doubtful whether much new equip
ment could be sold.
The woods most used in Denmark are Swedish pine, German and
American oak, Cuban and African mahogany, Swedish birch, and
Danish beech and pine. The timber is usually air dried and is later
subjected to a kiln-drying process.
While the local establishments within the sash, door, and window
manufacturing industry generally maintain a fairly high degree of
efficiency, the vast number of the smaller shops are not efficiently
managed, and even among the larger or medium-sized mills it appears
to be a fact that they are too small to permit effective employment of
modern methods.
Wages paid in this industry are relatively high as compared with
those in other European countries. For skilled workers in the sash
and door industry as well as in the majority of the furniture factories,
etc., the wage is 1.45 crowns per hour in Copenhagen and 1.20 crowns
per hour in the Provinces. (A Danish crown equals about $0.27.)
For unskilled labor 1.02 crowns per hour is paid in Copenhagen and
900re per hour in the Provinces.
Mass production, as such, is not known in the Danish woodworking
industry, and it is, on the whole, a fact that the industry is still more
or less in the craftsman stage of development.
17 g”
§ º
The total annual consumption of woodworking machinery had an

estimated value of around 500,000 crowns (approximately $35,000).
Of this, the domestic industry supplies roughly 75 or 80 per cent.
The balance is divided between Germany and Sweden. The domes
tic production embraces practically all the more common types of
woodworking machinery, such as circular saws, various kinds of
planes, molding machines, mortise machines, and tenon-cutting
machines. Swedish and German machines are highly regarded in
the local market, and certain makes are sold quite widely. Box and
barrel machinery is imported from Sweden only, and the majority of
the more intricate machines, as a matter of fact, are usually of German
or Swedish origin. The Swedish machinery is generally sold strictly
on a quality basis, while German machines enter presumably on a
price basis. The prominent place occupied by Swedish machines in
the local market is, of course, due largely to the fact that the Swedish
woodworking industry is so highly developed that the Swedish wood
working machinery industry, as a result, has been able to reach a
correspondingly high development.
American participation in the Danish market is unimportant.
The following table shows Danish production, imports, and exports
of woodworking machinery during the last three years.
DANISH PRODUCTION, IMPORTs, AND ExpoRTs of WoodworkING MACHINERY
Item and country 1925 1926 1927

; - -
—––––
Production--------------------------------------------------------- 1,000,000 763,000 705,000
Imports: --- -
Germany------------------------------------------------------- | 40,000 50,000 66,000

-- 34,000 21,000 37,000
2.000 3,000 5,000
76,000 74,000 110,000
Exports: .
Norway-------------------------------------------------------- ; 37,000 26,000 22,000

Sweden.-- - - - i -
Finland- -
Russia--- - - '------------| *U, UUU ------------

Belgium- - - 7,000 ------------
France- - - - -
Argentina--
Iceland--
Latvia--------------
Other countries
Total-------------------------------------------
Certain quantities of woodworking-machinery parts and acces

sories are, however, being imported from the United States, partly
for replacements and partly by the Danish woodworking-machinery
industry for assembly purposes. Price and credit difficulties, and a
feeling on the part of consumers that the American woodworking
machines do not conform to local requirements and are not well
adapted to the handling of the woods used locally, are assigned as
the chief reason why the United States has not secured a larger share
of the available business.
[A list of the more important sawmills and sash and door, furniture, box, and—
other woodworking factories in Denmark is available in the Commercial In
telligence Division of the Bureau of Foreign and Domestic Commerce, Washing
ton, D. C.]
18
LATWIA
By F. C. Sommer, American Trade Commissioner, Riga
The woodworking industry ranks first among the industries of

Latvia in number of employees, second in power consumption, and
third in number of establishments.
SAWMILL INDUSTRY
The wood worked by the domestic sawmills is obtained largely

from local forests, which cover 28 per cent of Latvia's area. Pine
covers 48 per cent of the forest area, spruce fir 29.8 per cent, birch
11.9 per cent, and aspen and alder each 4.9 per cent.
The sawmill industry on January 1, 1927, was distributed geo
graphically as follows:
GEOGRAPHICAL DISTRIBUTION OF LATVIA's SAWMILL INDUSTRY
I,00ation Annual pro

Enterprises | Saw frames | Workmen |Power used duction
62 130 4,000
Horsepower!
6, 500
Standards
100,000
12 25 900 1,000 16,400
9 24 1,000 1,000 25,000
4 7 100 200 2,200
160 200 1, 200 4,000 60,000
* 386 7, 200 ºw 203,600
In addition, considerable transit timber, floated to Riga from Russia

and Poland, is handled by local mills.
The products of sawmills, which consist largely of planks and boards,
comprised 76 per cent of the total timber products produced in Latvia
in 1927 and were valued at 46,900,000 lats ($9,052,000). The fol
lowing shows how this timber is eventually worked up:
Deals, battens, boards, and cuds, 165,301 standards, shipped to England,
Belgium, and France.
Pit props, 122,792 cubic feet, shipped to England, Belgium, France, the
Netherlands, and Germany.
Boxboards, 29,344 standards, shipped to England, Belgium, the Netherlands,
and Denmark.
Plywood, 19,325 tons, shipped to England, Germany, and the Netherlands.
Timber, cap-baulks, and beams, 80,340 loads, shipped to the Netherlands,
Germany, and Belgium.
Pulpwood, shipped to the Netherlands, Germany, and England.
Aspen blocks, shipped to Germany, England, and Switzerland.
Match splints, shipped to Belgium, Germany, and England. (Stopped now
on account of match monopoly.)
Miscellaneous, shipped to Australia and Africa.
Railway ties, shipped to England, Denmark, the Netherlands, and Germany.
Plastorers laths, shipped to England.
Crossbeams, shipped to England.
As Latvia is primarily a price market, German machinery, which is
from one-half to one-third cheaper than Scandinavian or American
machinery, is used. For example, a saw frame can be delivered from
Germany to Riga for 8,000 lats (1 lat=$0.193), whereas a Norwegian
or Swedish frame would cost from two to three times as much. Lat
vian, Swedish, Norwegian, and British machinery, in order of impor
19
tance, is also used. Saw blades and other tools are mostly obtained
from Germany, England, and Sweden.
The logs are fed to the sawmills on continuous chains and placed
on carriages which run on tracks and are operated by hand, no auto
matic devices being used, except in one plant in Windau which is a
recent installation.
Owing to the lack of capital and the great amount of idle sawmill
machinery (there now being 100,000 standards worked annually by
57 mills, whereas before the war 300,000 standards were produced by
the same number), little opportunity exists for the sale of new equip
ment, though this machinery is needed to reduce waste and increase
speed of operation. About 20 per cent of the employees in the mills
are females who receive from 1 to 2 lats a day. Common male labor
receives about 4 lats a day and skilled labor about 1.20 lats an hour.
While a few of the workers are unionized, the union movement is not
important because of the intermittent operation of mills.
While machinery exists for hoisting the floating logs from the shore
to the floor of the mill and for working through the cutters, all of the
other work is done by human labor.
As wood is in abundance in Latvia and a demand for products
derived from the use of sawdust packing, such waste is at present
automatically picked up in several mills by means of suction tubes
from the machines to the boilers and used as fuel under the steam
boilers for the operation of the plant. About 10 per cent of the 33
per cent of timber not sawn into boards is used for fuel. Other than
woodworking plants are also supplied by the waste. One large com
pany in Riga has constructed a new sawmill to be equipped with five
new Swedish saw frames to handle the milling of lumber for outside
firms, at the rate of 51 lats per standard. It is said that this sawmill
has been erected primarily to supply the fuel in the form of sawdust
and waste for the flour mill, flax mill, and candle factory located on
the property.
The power plant of this factory is being equipped with six 250
horsepower English boilers. The machines will be driven by electric
motorS.
There has been some talk about wood utilization, but as yet this
movement has not made much headway. The sawmills are working
their short pieces into boxboard and furniture. Some mills have
made toys from waste, but already find this more expensive than
using fresh material.
In Latvia lumber is cut to 6-foot lengths, 4-inch widths, and in
thicknesses 34, 34, 74, 1, 1%, 1%, 2, 2%, and 3 inches. Lumber cut in
metric measurements is also shipped to France, Belgium, and North
Africa.
Most of the power supplied to sawmills is furnished by steam
generated by the waste wood.
At one important plant, one of the five saw frames is operated
by electricity produced by the plant's own power station. The
box-board machinery at this plant is all worked by electricity.
The lumber is mostly sawn in the open air and very little of it is arti
ficially dried, most of it being dried in the open air. One company has
a drying kiln constructed by themselves, lumber being placed on cars
and rolled to the hot rooms. Another firm also has a drying plant
(15 standards per week working capacity) installed by a German firm.
20
There are two or three drying kilns in use, but these have a drawback
in that the lumber, being full of knots, tends to split in the process of
§. There is, however, a demand for good kilns in the plywood
industry.
Logging is usually carried on during the winter months by horse—
drawn sleds, and the logs are floated to the mills along the streams,
log railways being used very little. The method of auctioning off
parcels of timberland, the oversupply of mills, the lack of capital, etc.,
all work against the introduction of better transportation and manu
facturing equipment.
The woodworking industry in Latvia, aside from the boxboard and

planning mills included in the sawmills, consists of factories manu
facturing, plywood, match splints, barrels, household furniture, cork
and airplanes.
The machinery used in this branch is primarily of Scandinavian
and German origin, very little of it being brought from America.
Though the industry appreciates the value of up-to-date machinery,
it is hindered from making any replacements through lack of capital.
The principal kinds of domestic lumber used in the local plants are
white pine for boards, planks, and box board; fir for box boards and
parquet flooring; birch for plywood and parquet flooring; and aspen
and alder for plywood. Imported lumber includes oak for parquet
flooring and furniture, ash for parquet flooring, and mahogany for
plywood and furniture.
Most of this lumber is air-dried, although one important firm has a
kiln, built by itself which requires about three days for drying a 15
standard batch. Another concern has a modern kiln for drying lum
ber used in the veneer factory.
The tendency in this industry is toward a great number of small
plants rather than a few large plants, as there seems to be no movement
on foot for appreciation of centralized manufacture for reducing
operating or distribution costs.
Average daily wages paid to workers are as follows:
Lats Lats
5 : Log float laborer---------------- 6
9 Common labor, male------------ 3
5 Common labor, female - - - - - - - - - - 2
The foreman is paid 240 lats a month.
Much room is left for improvement, but owing to lack of capital,
rotation of labor, as well as seasonal operations, high production per
unit worker is difficult to obtain.
Most machinery is still operated by power shafts driven by steam
engines.
Though price is the dominating factor in the purchase of machinery,
some engineers appreciate the quality and efficiency of American
machinery. The imports of wood working machinery for 1928 were
as follows:
21
WoodworkING MACHINERY IMPORTS INTO LATVIA IN 1928
I
Country of origin Kilos Lats Country of origin Kilos Lats
Germany--------------------- 373,727 625, 227 | Estonia----------------------- i 9, 539 7,434

Sweden.---- 3.360. Sº, sº | France. - 588 1,690
England.------ --
Switzerland.------------------
20, 126
19,001
77, 165
46,254 ||
Finland - - - - .
Inited States. . . . .-----------
17
436
215
3,477
Poland------- - 39 150 | Other countries--------------- 2, 208 1,481
TXenmark-- 260 80ſ) --- -- - - ---
Czechoslov 542 981 Total.------------------- 450, 554 849, 836

Lithuania 12 30 |
|
The above table gives a fairly good idea of the nature of the Latvian
and Baltic market. To complete the picture, it might be stated that
Latvia supplied about 22 saw frames, 15 edgers, some planers, and
about 50 wood-lath machines in 1928. A study of the figures in
dicates that the average price per kilo for machinery ranges from
3.54 to 3.80 lats, with Sweden showing the higher figure. This is
explained by the fact that, while Germany's machinery consisted of a
considerable amount of cast-iron frames, etc., Sweden's was of high
quality steel and less in weight. Spare parts, weighing consider
able but low in price, help to reduce the price per kilo.
One large company has a special shop for keeping its saws and
tools sharpened. Some automatic machinery is used. This might
be considered the general practice of most iarge factories.
It is believed that, if agencies are placed in qualified hands,
American machinery can be sold in this territory on short-term
credits (three to six months) against bank guarantees.
The best market is for plywood machinery, since with the German
and Scandinavian sources so well established in the market, it would
be difficult to develop much of an opening for other types.
General conditions as prevailing in Latvia may be considered
applicable also to Estonia and Lithuania.
[A list of Latvian sawmills, manufacturers of sawmill and woodworking
machinery, and agents handling such equipment is available in the Commercial
Intelligence Division of the Bureau of Foreign and Domestic Commerce,
Washington.]
FINLAND
By C. Roderick Matheson, Secretary to American Commercial Attaché, Helsingſors
The Finnish sawmill industry uses pine (red wood), for the greater
part, fir (white wood), and spruce. Approximately 65 per cent of the
wood used is pine. The only other woods known to any great extent
in Finland are birch, used in the spool and plywood industries, and
aspen, used in the match industry.
Lumber is generally shipped by the Finnish sawmills as sawn timber,
and only a very small part is planed. During 1927 the output of the
sawmill industry in Finland aggregated 1,494,070 standards of sawn
goods and 8,161,442 cubic meters of fuel and sawdust. During that
year there were 608 sawmills in operation throughout Finland,
employing a total of 56,915 laborers and 2,514 other employees.
The total value of the 1927 production amounted to 3,490,190,000
marks. (A Finnish mark is worth approximately $0.025.) The
capacity of the mills above described is estimated at around 2,000,000
standards.
22
The principal foreign equipment imported comes from Sweden.

Circular and gang saws are imported from the United States in small
* 8 (16S.
There is a fairly steady annual import of saws and saw
During 1927, the latest year for which statistics are available, the
imports of saws and saw blades totaled 159,943 kilos, with a value of
7,760,596 marks. The United States, share in this trade during 1927
totaled 10,227 kilos, with an aggregate value of 528,577 marks. The
total imports during 1926 of saws and blades amounted to 117,200
kilos, valued at 5,362,645 marks. Of this, 9,843 kilos, valued at
494,608 marks, originated in the United States.
Finnish-made machines enjoy a good reputation in Finland, and
these, together with those imported from Sweden, have practically a
monopoly of the market.
Carriages and feeding devices used in the Finnish sawmill industry
are practically all manufactured in Finland, and those for special
purposes in Sweden.
SAWMILL INI) USTRY
The sawmill industry, being one of the chief industries of Finland,

is maintained on the most modern possible lines. The equipment
used is considered very satisfactory, and all possible latest devices and
machinery are installed whenever practical.
In the mills proper, the logs and lumber are handled practically
exclusively by machinery, by means of conveyor facilities, loading
devices, etc. The only place where human labor is used to any great
extent is in loading barges with sawn timber of different lengths and
sizes.
There is a demand in Finland to reduce waste wherever possible,
including waste in sawdust. The saws generally used in the Finnish
machines, and to some extent in the Swedish equipment, are of
domestic manufacture, 14 Birmingham gage.
As already mentioned, there is a demand to keep waste down to a
minimum, and as labor is not very expensive, it is possible to elimi
nate wood waste to a greater extent than is practical in those coun
tries where wages are high. As a rule, tops are left in the woods;
top logs are used as pit props. On the whole, the recovery of all
usable tree parts is considered very good, and waste is believed to
be minimized in the sawmill industry.
Steam is generally used in the Finnish sawmills to generate power;
electricity is used less extensively. Wood is used as fuel, the saw
mills utilizing waste and wood scrap for economy's sake. Electricity
is produced by water power, either by the sawmill itself or by large
power plants who sell electricity to mills, townships, etc., for power,
lighting, and other purposes.
Lumber is sold by the Finnish sawmills as planks, deals, boards,
and small pieces (scantlings, firewood, etc.). Very little is sold
planed. Planks, boards, etc., are placed in the open air to dry, for
the most part; there is some kiln-drying, and this method of drying
lumber is increasing, especially among the large sawmills. The kilns
used by these mills are partly of the Swedish type, and partly locally
made. -
There is only one piano works in Finland, and the wood used there
is imported, as no suitable hardwood is produced in Finland.
23
Two airplane factories operate in this country, but the wood

consumption is very small, owing to the relatively small annual
production of these two plants.
Logs for the manufacture of lumber are usually drawn by tractor
or sledges to the near-by lakes and rivers and floated to the mills.
Log railways are unnecessary, owing to the existence of a network
of lakes and waterways throughout Finland. Timber cutting is
carried on during the winter, and logs are floated to the mills in the
spring and summer.
WOODWOrking INDUSTRY
There are hundreds of small woodworking establishments through

out Finland, but comparatively few of any great importance. The
official statistics published by the Finnish Central Statistical Bureau
do not include a great many of the smallest woodworking establish
ments of the country.
The following table shows the official statistics for 1927 on the
woodworking industries in Finland, their equipment, employees, and
production.
. Number * Employees | Production
Marks 1
Plywood mills------------------------------------- 11 6,983 3,916 171, 183,400
Box factories -- 13 1,490 1,317 87,794,600
Shipyards----------------------------- -- 14 104 280 1, 197,000
Joineries and furniture makers ! 157 90s - 3, 479 146,007, 700
1 The Finnish mark equals about $0.025.
It is reported that about 30 carpenters and joiners' factories have

established a company for exporting their products as well as for
purchasing machinery, raw materials, and other necessities. Ac
cording to the articles of association, the capital amounts to
1,000,000 marks.
There are no independent planing mills in Finland. Some planing
is done at the sawmills. The entire 1927 production of planed lumber
totaled 48,405 standards, of which approximately 80 per cent was
pine. In addition to this figure, 7,143 standards of planed boards
were produced by the box factories of the country.
Sashes, doors, and indoor finish are included in the total output of
the joiners, furniture makers, and box factories.
There is only one airplane factory in Finland. This is the state
owned factory at Sveaborg. Its production is chiefly for military
use, and figures are not published, therefore, as to the output of this
factory.
The majority of the woodworking establishments in Finland are
equipped with a lathe, a saw, and a planer each. A number have
other machinery as well, but for the most part old models. The
medium-sized factories frequently possess fairly good machinery,
and in some of the largest establishments of the country the ma
chinery and equipment is thoroughly up to date.
Electric power is not available to all of the woodworking establish
ments of the country; however, where it can be used economically,
practically every such factory is operated electrically. The tendency
241
is to electrify each machine individually, either direct or alternating

current of 50 cycles being used.
Operators of woodworking establishments in this country are,
generally speaking, interested in the improvement of their factories;
but the greater number of these factory owners are without adequate
capital to make consistent or large improvements in types and models
of their equipment.
The use of hardwoods in the local industry is comparatively small,
pine, spruce, and birch being the easiest obtainable and most avail
able kinds of wood. The imports of unworked hardwood in 1928
included 2,625,314 kilos of oak, from Germany, Poland, and Danzig,
and 394,367 kilos of other kinds, from Germany, Danzig, Great
Britain, the United States, and other countries. Sawn hardwood
lumber of a minimum thickness of 7 millimeters was imported to a
total of 3,566,738 kilos into Finland during the same year. These
included the following:
IMPORTs of SAw N HARD wood LUMBER INTo FINLAND IN 1928
{II, kilos]
Country of origin Rod beech Oak | Walnut Other
Russia------------------------------------------------- 9, 808
Sweden. --- t
I)enmark--
Germany. .
(lreat IBritain -
France ------------------
Switzerland--------------
Polanºl-----
Danzig-------------------
United States ------------
Sheets of red beech totaling 4,100 kilos were imported from Den
mark during 1928.
Oak is used in Finland in the building industry for hardwood floors
and window casings, as well as for the manufacture of furniture.
Red beech is chiefly used in the manufacture of vehicles, automobile
bodies, and, to a smaller extent, wringers and other specialties. Wal
nut is imported in very small quantities, its principal use in this
market being for the manufacture of furniture, for which the demand
is believed to be on the decline. The item “Other” of hardwood im
ports listed in the official Finnish foreign trade statistics is made up
mainly of mahogany, which is used in the furniture and shipbuilding
industries.
Pine, spruce, and beech comprise the great bulk of woods used in
the local woodworking industry.
In the majority of cases, wood for the woodworking establishments
of the country is stacked, unseasoned, in the factory yards and left
there for seasoning; kiln drying is not generally practiced. Cheap
grades of furniture and woodwork are produced from wood which has
not been thoroughly dried, and factory prices are roughly gaged by
the degree of seasoning of the wood in the manufactured products.
On the whole, the better-manufactured articles are of very good
quality and workmanship.
25
There are few very large woodworking factories in Finland in com

parison with other Furopean countries.
So far little tendency has been shown among the woodworking
plants of the country toward cooperation, either in the form of
mergers, cooperative societies, or purchase by one mill of others. It
is believed that if the company already referred to, organized by car
penters and joiners for exporting their products and purchasing their
supplies, proves successful, other establishments in the industry will
follow suit in the next few years.
The wages of skilled cabinetmakers, finishers, machinists, and
mechanics ranges from 6 to 10 marks per hour, depending upon the
factory and the district. Ordinary laborers receive lower wages.
The efficiency of workers in this trade depends largely upon the
size of the factory. Division of labor in the small establishments is
impracticable, and individual efficiency suffers accordingly. In the
larger factories, the individual efficiency of the workmen is said to be
very satisfactory.
Around 75 per cent of the woodworking machinery used in Finland
is of Swedish origin, two makes, especially, being ſound in most of the
furniture and cabinetmaking plants in the country.
Wood waste is relatively high in the Finnish woodworking industry.
The price of wood, however, is so low that the question of waste does
not offer any serious problem to the factories engaged in this activity.
Price is the most important consideration in selling woodworking
machines in this market. The average factory proprietor conducts
his business on a small scale and has not the means to purchase expen
sive equipment for his establishment. This fact is borne out by the
attached tables of Finnish imports of woodworking machinery, which
show that a relatively large number of cheap German machines find
a ready market here.
One factory in Finland manufactures woodworking machinery.
While this company shipped to Russia and Sweden machinery aggre
gating 2,508 kilos, valued at 57,875 marks in 1927 and 2,137 kilos,
valued at 69,290 marks in 1928, its total production does not nearly meet
the requirements of the local market, and Finland is dependent upon
imports for this type of equipment. Sweden and Germany enjoy an
advantage over exporters of other countries, owing to the relatively
low prices of their machinery, their nearness to the market, their con
sequent ability to deliver goods quickly, and their close familiarity
with the requirements of the Finnish industry. These advantages
are further enhanced by the willingness of Swedish and German
exporters to extend credit and accept long-term payments.
The heavier types of American machinery and special equipment
for the woodworking industry enjoy a relatively good demand in
this market, as evidenced by the official foreign trade figures published
by the Statistical Bureau of the Finnish Government, and the pros
pects for the gradual expansion and growth in this industry will,
it is believed in the local trade, tend to open a larger field for those
types of American woodworking machinery which are now purchased
from the United States, as these are well known among the larger
factories of the industry.
26
IMPORTS OF WOODWORKING MACHINERY INTO FINLAND IN 1928
r |
Item and country of origin * Yººn
-
| Item and country of origin * Yººn

|
-
SAWS | |
: PL.ANING M.ACIIINES
Under 500 kilos: |
Sweden.-------------------, 33, 133 617, 527 . Under 500 kilos:
Norway--- ----| 1,395 30,000 || Sweden.------------------- 18,443 298,495
Denmark ---- 8, 552 170,900 | I)enmark - -
10, 440 246,686 , Germany

Czechoslovakia- 13 500 ||
United States------------- | 10 § Total, 1928 37,653
20,992
611, 295
405,094
| - 1927
1,066,033 || 1926 16,424 308,342
1, 323, S12 ||
897,656 Over 500 kilos:
===== | Sweden.---------------
Norway
125,363
2,390
2,235, 130
50,000
11.934 3,229,803 Germany--- 41, 176 566,667
16,717 | 277,500 United Stat 3,805 160,000
20, 560 325, 200
i.12; º Total, 1928--------------
-
172,734 3,011,806
201,086 3,036, 718
750 : 11, 700 1927__
- - 1920-------------- 119, 531 || 1,967, 685
Total, 1928-------------- 251,383 3,887, 203
1927 - 187, 674 2,932,681 ()THER MACHINES
1926__ 193,248 || 2,993, 006
====== Under 500 kilos:
Millin G CUtters | Estonia------------------- 422 12,000
| l Sweden -| 39, 586 724,801
Under 500 kilos: i I)enmark -| 13,400 318, 114
Sweden.------------------- 11, 758 193,800 Germany- - 16,911 381, 538
Germany-- -- 3,617 49,760 Belgium - , 524 116,800
United States------------- 426 iP2,651 Great Britain- - 290 8,685
----- United States------------- 2,072 151, 500
Total, 1928 15,801 266, 211
1927 -- 12,336 243, 119 Total, 1928-------------- 75,265 1,713,438
1926 10,695 191,801 || 1927 47,381 960, 511
======= | 1926 29, 601 586,040
Over 500 kilos: :
Sweden.---- 1, 144 18, 100 ()ver 500 kilos:
Germany-- -- : 2, 201 38,050 | Estonia------------------- 4,
United States-------------, 12, 790 312,000 : Sweden.------- ; 104,101 | 1,749,978
--- IDenmark----- 1,500 39,750
Total, 1028-------------- 16, 135 368, 150 . Germany- 203,103 || 2,332,274
1927 - - 133,920 Belgium 2,955 31, 200
1926– - , 505,635, (Breat Brit 602 17,660
|===== } United State - 79, 178 1,588,371
Total, 1928-------------- 391,873 || 5,763,233

- | 1927 - 177,859 3,052, 562
1926 - 221,421 3,796,724
|
[A list of sawmills in Finland is available in the Commercial Intelligence Divi
sion of the Bureau of Foreign and Domestic Commerce, Washington.]
O

-william L. COOPER, Director
REGEIVED
MAY 23 1930
. s. U. LibRARY | SALWADOR
AS A MARKET FOR FOODSTUFFS
FAF
105
2.25
poez. UNited States
WASHINGTON : 1930

FOREWORD
Salvador spends annually nearly $2,500,000 for imported food-.

stuffs, about 72 per cent of which is expended in the United States.
Most of these food products are shipped from our Pacific coast ports,
but the opening of rail communication with the Caribbean through ,
the Guatemalan port of Puerto Barrios is expected to alter the
situation. American exporters who ship through Atlantic and Gulf
ports now have a better opportunity to enter the Salvadorean market
than at any time in the past. European shippers will also be able
to take advantage of this shorter haul, however, and the indications
are that competition will become keener than ever.
Flour, lard, hams, canned meats, canned fruits and vegetables,
sardines, fresh and dried fruit, fresh and dried vegetables, crackers,
canned milk, butter, and cheese are among the more important items
shipped from the United States to Salvador.
Though economic conditions in Salvador are at present unsatis
factory as a result of the current weakness in the price of coffee, the
commodity which accounts for over 90 per cent of the country’s
exports, this is a good time for firms contemplating future extension
of distribution to Central America to survey the market, estimate
the potential demand for their products, and arrange for sales
representation.
This bulletin contains considerable general market information on
Salvador which should be of interest to exporters in general,
although the greater part of the report is devoted to the market for
specific foodstuffs. It is the third bulletin in the series being pre
pared by Trade Commissioner H. P. Macgowan and follows those on
the foodstuffs markets of Colombia and Guatemala. A fourth on
Honduras is in course of preparation. Additional bulletins will be
published until all the Caribbean markets have been treated.
Trade Commissioner Macgowan wishes to thank Algar E. Carle
ton, American consul at San Salvador, for many helpful suggestions
and for generously placing at his disposal the facilities of his office.
Further data on the market will be furnished on request by
the foodstuffs division of the Bureau of Foreign and Domestic
Commerce.
MAY, 1930. -
(II)
SALWADOR AS A MARKET FOR FOODSTUFFS
By H. P. Macgowan, American Trade Commissioner
Salvador is a market with which American exporters are not

sufficiently acquainted, and particularly to our foreign traders of
the Eastern and Middle Western States is this little country an
unplowed field. This is not surprising, since the market is but a
small one and is more accessible from our Pacific coast ports, as it
has no Caribbean coast line.
The Republic imports annually from overseas about 20,000 metric
tons of foodstuffs, expending for these purchases approximately
$2,335,000. Besides the imports in which we have a definite competi
tive interest, there are annual arrivals of close to 1,000 metric tons
of wines, spirits, beer, and miscellaneous alcoholic beverages valued
at about $365,000. These figures and those in ensuing paragraphs
are based on the official trade figures of Salvador for 1928.
About 12.5 per cent of Salvador's expenditures for imported mer
chandise went, in 1928, for the purchase of foodstuffs, and approxi
mately 72 per cent of the funds expended for imported foodstuffs
were spent in the United States. When it is remembered that our
share in the total import trade of the country is 53 per cent (by
value), it is evident that our position in the foodstuffs trade is
decidedly stronger than our position in the import market as a whole.
The recent establishment of rail communication between the princi
pal cities of Salvador, including the capital, San Salvador, and Guate
mala's Caribbean seaport, Puerto Barrios, has altered the transporta
tion situation, and given impetus to the movement of American goods
from Atlantic and Gulf ports into Salvador via this new combination
rail and water route. Exporters located in areas adjacent to such
ports are therefore appreciably nearer this Pacific market than at
any time in the past.
Although Salvador is a limited market for imported merchandise.
it is attractive because of its record for economic, financial, and
political stability, and because of the progressive spirit of the business
community. European nations, several favored by preferential
tariff schedules, are trying hard to increase their share of the trade
at our expense, and it is quite probable that they will take full advan
tage of i. new route, thereby eliminating the necessity of shipping
through the Panama Canal and up the west coast, and improving
their position for competing with the American Pacific coast firms
which have been doing such a large share of the foodstuffs business.
GEOGRAPHY
Salvador is the smallest of the Central American Republics, and

the only one without an Atlantic seacoast. It lies between Guate
mala, to the northwest, Honduras on the north and east, the Gulf of
(1)
2
Fonseca to the southeast, and the Pacific Ocean on the north. The
area is 34,126 square kilometers, or about 13,173 square miles, approx
imately the same, as Maryland.
It is a mountainous country, traversed by two principal chains,
from which numerous spurs branch out in all directions. There is a
narrow strip of coastal plain with tropical climate, and many small
but fertile valleys are situated among the hills. The most important
river is the Lempa, and its valley is particularly well adapted to
agriculture. In the higher valleys the climate is semitropical and
agreeable, and in the hills even more temperate weather is
encountered.
POPULATION
Official estimates placed the population of Salvador at 1,722,579,

as of December 31, 1928, or about 50.5 per square kilometer. This
equals a population density of 130 per square mile and makes Sal
vador the most densely populated Central American Republic.
It is estimated that about 60 per cent of the population is rural
and 40 per cent urban. Illiteracy is high, but is gradually being
reduced. In 1928 about 67 per cent of the population was con
sidered illiterate, as against approximately 68 per cent in 1927.
The estimated population of the chief cities, as of December 31,
1928, is given in the following statement:
Santa Ana---------------------------------------------- 75, 796
Chalchuapa--------------------------------------------- 31, 061
Ahuachapan--------------------------------------------. 31, 741
Sonsonate----------------------------------------------- 16, 895
Santa Tecla (also called Nueva San Salvador) ------------- 29,499
San Salvador------------------------------------------- 89, 066
Zacztecoluca-------------------------------------------- 34, 456
San Vicente--------------------------------------------- 34, 723
Sensuntepeque------------------------------------------- 22, 905
Ilobasco------------------------------------------------ 21, 300
San M'guel--------------------------------------------- 38, 620
La Union (port)---------------------------------------- 7, 543
La Libertad (port)-------------------------------------- 2,845
Acajutla (port)----------------------------------------- 1. 149
For the benefit of firms which plan intensive market coverage,

the following table shows official population estimates by Depart
ments.
POPULATION BY DEPARTMENTS
[Official estimates as of IDecember 31, 1928]
Department Area Population | Density
Square kilo
| meters
Santa Ana------------------------------------------------------------ 3, 559 184,7
Ahuachapan---------------------------------------------------------- 2,082 105,326
Sonsonate------------------------------------------------------------ 2, 242 116, 758
La Libertad.-- 2, 184 126,695
San Salvador- 2,047 193,836
Chalatenango
Cuscatlan- - - -
La Paz. ------
i. Vicentell....... ...... .I.I.I.I.I.I.I.I.I.I.I.I.I.I. 2, 287 98,310
Xabanas--- 819 71. 137
San Miguel 3,481 146,690
Usulutan.-- 3.344 147,057
Morazan - - 56
Total----------------------------------------------------------- 3,120 Liaº

3
COMMUNICATIONS
Salvador has no Atlantic coast line, but it enjoys direct steam

ship connections with New York, San Francisco, and Los Angeles,
besides occasional services with other American ports. Direct steam
ship communication with Europe is also available.
The direct services from the United States east coast and from
Europe operate via the Panama Canal. United States shippers can
also ship to the Canal Zone by several other lines and, after trans
shipment there, to Salvador by one of the lines operating coastwise
services along the Pacific coast of Central America.
Merchandise enters Salvador through three ports, that is, mer
chandise imported by water. In 1928, 16,000 metric tons came
through La Libertad, 34,000 tons through Acajutla, and 66,000 tons
through La Union. Shipments of local products to foreign coun
tries moved as follows: 22,000 metric tons through Acajutla, 7,000
tons through La Libertad, and 24,000 tons through La Union.
La Union and Acajutla are linked by rail with the capital, San ,
Salvador, and with most of the important distributing centers. .
Usually the shipper chooses the port of entry nearest the town in .
which his customer is located, so as to incur a minimum railway
freight expense. La Libertad is connected with San Salvador by .
an excellent automobile road, over which trucking and passenger
automobile service operate. Travelers headed for the capital usually
enter through La Libertad because of the short automobile trip'
required—about one and one-half hours—as compared with an all
day train trip from La Union, and a half-day trip from Acajutla.
Some travelers are now making use of the airplane service from
Guatemala, sending their baggage by the auto-rail route just de
scribed. From Guatemala City the traveler can continue to Mexico
and the United States by air if he so desires.
An important development in the transportation situation is the
recent completion of the railway connecting Santa Ana with Zacapa
in Guatemala, and through Zacapa with Guatemala City and Puerto
Barrios, Atlantic port of Guatemala. Work trains traversed the new
track late in 1929, but not until early in 1930 was this link opened
to general traffic. There is much speculation as to what effect this
new artery will have on the routing of imports from Europe, New
York, and New Orleans. Presumably some of the midwestern prod
ucts now coming via the Pacific coast and some of the eastern ship
ments now coming through the canal will take advantage of this new
route. Shippers should watch for the announcement of freight rates
to Salvador points via Puerto Barrios, and check them with those
being paid on shipments via the old routes.
The highways of Salvador are better than those found in other
Central º countries, and in the dry season many interior
towns can be reached from towns on the rail arteries by motor car.
In the rainy season several of the larger towns can be reached, but
less comfortably. , Travelers should invariably attempt to secure
accurate information regarding condition of roads and hotel accom
modations before setting out on an auto trip. Chauffeurs anxious
to rent their cars are frequently over optimistic and not adverse to
misleading the credulous traveler.
-
4
The International Railways of Central America, which connect

San Salvador with the port of La Union, and now with Guatemala
City and Puerto Barrios, in 1928 operated 441 kilometers of line.
Figures for 1929 construction are not yet available, but will prob
ably bring the total to about 500 kilometers. In 1928 this railway
carried 1,041,565 passengers and 163,773 tons of freight.
The Salvador Railway, which connects San Salvador with the port
of Acajutla, had in 1928, 145 kilometers of track in operation, and
carried 703.540 passengers and 146.214 tons of freight.
During the year 1928, 699 ships called at Salvadorean ports; total
tonnage of these entrances was 1,513,250 tons.
The national telegraph system operated 256 stations and 4,022
kilometers of wire in 1928, and the national telephone system oper
ated 256 centrals, 3,703 instruments, and 4,613 kilometers of wire in
that year (1 kilometer equals ().62 mile). An American cable com
pany operates a cable service to all parts of the world.
Airplane services connect San Salvador with Guatemala, Mexico,
the United States, and Panama.
FOREIGN TRADE
£xports from Salvador in 1928 reached a total value of $24,464,000

a considerable gain over 1927 but approximately equal to those of
1926. In 1928 coffee accounted for 92.96 per cent (by value) of the
country's exports. Sugar, henequen, and Peruvian balsam are the
only other exports of importance, and they were shipped in limited
quantities. Exports of cotton have fallen off considerably.
About 30 per cent of the exports went to Germany, the heaviest
buyer of coffee: the United States was second in importance as a
customer for Salvador's exports taking about half as much as
Germany.
Imports in 1928 were valued at $18,652,000, considerably more
than in 1927, much less than in 1926, and almost equal to the imports
of 1925. Imports covered a wide variety of merchandise, but food
stuffs and cotton textiles were the most important. Merchandise
valued at $9,916.940, approximately 53 per cent of the imports, came
from the United States. The United Kingdom ranked second, with
about 13 per cent for its share, and Germany was fourth, with close
to 10 per cent.
ECONOMIC CONDITIONS
The economic structure of Salvador is not complex; it is a

“1-crop country, with coffee playing the major rôle. Nearly 93
per cent of the republic's exports consists of coffee, and economic
conditions fluctuate with coffee production and prices.
I)uring the 5-year period 1924–1928 coffee prices were decidedly
good, and not until October, 1929, did a serious drop occur. During
these years of satisfactory prices coffee production gradually in
creased, and the country prospered. The money which flowed into
the country as the proceeds of coffee sales abroad increased per
capita purchasing power and indirectly the demand for imported
merchandise.
The slump in coffee prices which occurred in the fall of 1929 was
seriously felt early in 1930, though conservative merchants had be
-
un to reduce their oversea orders during the closing months of

1929. Fortunately the 1929–30 coffee crop was a large one, slightly
larger than the preceding crop, but even so, planters are realizing
considerably less for it than they did on the crop of the previous
year.
By March, 1930, a definite business depression was apparent, and
banks reported a marked slowing up of collections. Many merchants
were overstocked and were experiencing difficulty in moving old
stocks from their shelves, and in realizing funds for taking up drafts
covering recently arrived merchandise. Numerous firms of limited
resources and doubtful reliability refused to accept goods on one
pretext or another, and considerable quantities of merchandise had to
be returned to the shippers.
Probably the situation will gradually right itself during 1930.
and business will be reorganized on a new, sound, but reduced scale.
It is hoped that orders are limited to necessities, and that imports
are reduced to a point where they can be financed by the lower
cxports. Foodstuffs business is not suffering as much as that in
other lines, and luxuries are the hardest hit by the depression.
Staples are least affected by the decline in purchasing power.
American exporters should not attempt to oversell the market.
and should preferably confine their sales to the reliable firms of
proven financial ability and conservative methods. Frequent small
orders involve less risk than occasional large purchases and should
be encouraged. Credit risks should be checked and agents should
be warned to forward reports on new customers.
Exporters investigating the market with the idea of entering for
the first time must bear in mind that business conditions are at
present unfavorable. For the present, only limited sales can be
expected. However, now is an excellent time for studying the
market, appointing agents, and planning advertising and sales
campaigns.
TARIFF REGULATIONS
The import tariff of Salvador provides a schedule of rather

high duties, most of which are specific duties charged on gross
weight. Rates on canned goods and groceries are particularly high.
but those on staples range somewhat lower. Undoubtedly, the ten
dency to charge high rates on certain food products has limited
the import and consumption of these items because of the consequent
increase in their cost to the ultimate consumer.
Salvador has a preferential tariff agreement with France by which
certain French products are admitted at reduced import duties in
return for tariff concessions in France on certain Salvadorean prod
ucts, notably coffee. By most-favored-nation agreements between
Salvador and Germany. Belgium, Italy, Switzerland, and Spain
the benefits of this treaty with France are extended to the products
of those countries when imported into Salvador.
In the items affected by these agreements American exporters
have experienced keen competition, and in many cases have found
it impossible to compete with the favored European products.
The agreements with the European countries mentioned above
have been denounced, but according to best reports at present avail
6
able, their termination has been postponed to the middle of 1930. .

These extensions were granted to permit time for preparing, sub
mitting, and possibly negotiating new agreements, and already nego
tiations with France in connection with a new commercial treaty
are under way. The idea is for this to serve as a basis for negotia
tions with the other five countries and with such others as may
subsequently negotiate commercial treaties with Salvador.
The United States has negotiated a most-favored-nation treaty
with Salvador, and when ratifications are exchanged, our goods will
receive equal tariff treatment with any and all other countries
except those of Central America, thus removing the advantage
held at present by the six European countries listed. . It is thought
that any new preferential duties agreed upon by Salvador will be
based on a percentage preference, rather than on a specific difference
in rates. This will permit the movement of preferential duties in
accordance with any increases or decreases in the general tariff
schedule.
In addition to the tariff preferences by treaty with France and
other European countries previously mentioned, Salvador by recipro
cal agreement accords duty-free treatment to Honduras on an ex
tensive list of commodities and special concessions to other Cen
tral American Republics. A similar agreement with Guatemala is
in process of negotiation.
It will be noted in later sections of this report that this preferred
tariff treatment has aided Salvador's neighbors to develop in it an
export market for some of their products, notably lard, cheese, but
ter, beans, vegetables, fruit, fish, and tobacco.
In the following table is shown a list of the commodities on
which the six European nations now receive preferential tariff
treatment.
SALVADOR'S PREFERENTIAL DUTIES
[R \tes are in United States currency per kilo, gross weight]

i
General iPreferential
Commodity i rate rate
Sardines----------------------------------------------------------------------- $0.3500 $0.2481

Mineral water------------------------------------------------------------- . 104 - 0801
Olives------- . 5140 . 2929
Pickles--------------------------------------------- . 5140 . 2929
Prepared mustard--- - - - . 5140 . 2929
Currie 5140 . 2929
Sauces--------------------- 5140 . 2929
Vegetables, butter, fish, meats, I . 5140 . 2929
Dried fruits, ſigs, dates, prunes, raisins . 3500 . 2481
Fruits preserved in alcohol or syrup.--- . 5140 .2929
-- . 3500 . 2481
5140 . 2929
3500 . 2481
5140 . 2920
EXPORTING FOODSTUFFS TO SALVADOR
Most of the American food products entering Salvador are sold

by the manufacturers, canners, or millers through agents in Sal
vador, but wholesale grocers still supply considerable quantities
t
of miscellaneous groceries. Export commission houses formerly did ſ
a large part of this business, but in recent years there has been a |
!
7
decided change in distribution channels, and an ever-increasing

share of the business is going direct to original sources.
Of course, the American wholesale grocers are operating to some
extent as commission houses. Most of them do a certain amount
of packing, canning, and manufacturing themselves, and when they
handle items not prepared by themselves, either contract for the out
put of canneries, mills, etc., and have the products put up under their
private brands, or obtain the export rights to certain territories on
specific standard brands, or simply wholesale the products prepared
by others.
Staples, which are in considerable demand now, move almost
entirely from manufacturers. The principal export meat packers
sell through agents in Salvador, as do most of the larger flour mills,
canners of fruits, vegetables, fish, milk, and meats, and cracker manu
facturers. The wholesale grocers usually push their own brands of
canned goods, bottled specialties, sauces, etc., and also take orders
for various less important grocery specialties, under their own or
other brands.
Until recently Salvador has had no outlet to the Caribbean, and
as a result of geographical location has been a logical market for
exporters on our Pacific coast. Most of the food products pur
chased in the United States have moved south from San Francisco.
and to a lesser extent from other Pacific coast ports. This was
true when export commission houses did the bulk of the business,
and it is still true with imports being sold direct. The new rail
way connection with Puerto Barrios on the Caribbean coast of
Guatemala may, however, alter this situation somewhat.
When the commission houses were doing most of the business.
they utilized the services of their own traveling salesmen and also
operated through local agents in Salvador; manufacturers are now
doing the same thing. Both have employed branch houses when
the volume of business has warranted the overhead required to main
tain their own establishments. Frequently manufacturers appoint
the branches of export commission houses to act as local agents, but
then the commission house branch functions rather as a local agent
than as an export commission house.
The bulk of American foodstuffs are sold through agents in San
Salvador. A few lines are sold by agents located in neighboring
countries who visit Salvador periodically. As a general rule, it
is better to have a man who is always on the ground, especially if
difficulties arise in connection with refusal of merchandise and non
payment of drafts.
However, a good agent in Guatemala City or other Central
American country is preferable to a poor agent on the ground, and
good agents are not easy to find. Appointing agents by correspond
ence is always difficult and often hazardous, but sometimes it is
possible to choose a good man in this way. It is a good idea to
check carefully the applications of would-be agents, communicating
with all other firms represented by them, as well as banks and
credit-reporting agencies, before reaching a decision. Frequently
a commission agent can operate successfully on limited capital, but.
of course, some financial responsibility is desirable. I)istributors
who buy outright and carry stocks should have sufficient capital
109554–-:30—2
8
to finance their operations. Agents should have reputations for

honest dealing and energetic salesmanship.
SALVADOREAN IMPORTERS
There are about 10 large wholesale and retail grocers in San

Salvador, and 2 or 3 in each of the larger secondary towns. Most
American foodstuffs firms prefer to do business with these firms,
and let them sell the smaller retailers. In other words, 20 good
accounts in the country are about as many as the average exporter
can expect. Ilimiting sales to the larger, more reliable buyers
reduces the credit risk and minimizes losses. The local wholesaler
knows his customers and is in a much better position to secure
payment.
These combination wholesale-retail firms also act as exclusive
distributors for grocery specialties, particularly malted-milk prod
uct, wines, spirits, etc., and stock them, but this usually prevents
other similar firms from buying, and limits sales to retail and
consumer clients of the distributor.
CoverING THE MARKET
Representatives of American firms confine their efforts largely to

San Salvador, but salesmen wishing to cover the market intensively
spend a day or two in each of the secondary towns. European sales
men are more apt to visit the smaller towns. Much depends on the
lines handled, and particularly in such lines as dry goods, glassware,
china, kitchenware, hardware, and novelties are the lesser centers
worth covering.
It is doubtful if the foodstuffs salesman could accomplish much in
these smaller towns. Usually the local agent is able to do this work,
and it often pays him because he probably sells flour, lard, canned
fruits, vegetables, fish, and miscellaneous food products, whereas the
traveler is usually confined to a limited line. In introducing a new
product, some foodstuffs men have found it advisable to cover the
smaller towns in company with the agent or one of his men.
No definite rule can be laid down for canvassing the country, but
the traveler can usually decide for himself the policy he should
pursue after talking the matter over with his agent in San Salvador.
and securing the opinions of local bankers and merchants. It is
advisable to consult the American consul in San Salvador, since he
will be able to summarize for the traveler the experiences of the
numerous salesmen who have preceded him.
MARKET FOR SPECIFIC COMMODITIES
FLOUR
Wheat flour is the most important single item on the list of

American exports of foodstuffs to Salvador. In 1928 the Republic
imported 12,528,638 kilos of wheat flour, and all but about 20,000
kilos came from the United States. The small balance was brought
in from Canada. Total flour imports were valued at 2,130,076 colons,
or about $1,065,000.
9
Almost all the American flour was shipped by Pacific coast mills.
and the great majority was soft-wheat flour. Some hard winter
wheat flour enters the country, but this goes largely to the principal
bakers, who frequently use it to mix with soft flour. The purchase
of hard spring wheat flour is very limited, and its use is largely
confined to the homes of the upper class and foreigners.
Imported flour is usually ordered in 49-pound drill bags, gross
weight, packed three to the large new jute oversack. This jute bag
weighs about 2% pounds and is used for exporting Salvadoran coffee.
Used bags are not allowed to enter the country. A certificate of
purity is required.
Two other packings are sometimes requested, six 24%-pound drill
bags, gross weight, to the jute oversack, or twelve 12%-pound bags
to the jute oversack, American mills should be very careful to follow
packing instructions and to note whether gross or net weights are
specified.
Flour millers in the middle west may be able to ship into Salvador
via New Orleans, or other Gulf port, and Puerto I3arrios, Guate
mala, now that the rail connection with Salvador is completed. At
the present, three large Pacific coast mills are getting the bulk of
the business. Canadian mills are represented in the country, but
thus far their agents have not been able to seriously interfere with
American sales. However, it is hardly probable that our competi
tors in the north will desist from their efforts to increase their
business. They have in their favor a growing tendency to use more
hard wheat flour.
The consumption of wheat flour is slowly increasing, but corn
meal, made from domestic corn is still the staple diet for the greater
part of the population. Wheat bread is, however, growing in popu
larity, and its use will probably continue to increase as purchasing
power develops.
About 42,000 kilos of other flours were imported in 1928, and
under this head are included oat meal, corn meal, and flours made
from miscellaneous cereals. In addition, there was imported during
1928, 302,325 kilos of malt, of which 97 per cent came from the
United States, and the balance from Germany. Most of this was
bought by the breweries.
WHEAT
In 1928 Salvador imported but 492 kilos of wheat, and since there
is no flour milling industry in the country this must have been
purchased for seed, or experimental use.
RICE
The consumption of rice in Salvador is limited. Small quanti

ties are grown locally. and production could well be increased. Im
ports are very light, and in 1928 only about 1,000 pounds was
brought in. “Siam Garden No. 1 ° is a favorite, and “ Siam. Usual *
and “Saigon Long * sell to some extent. These oriental rices are
imported via the United States; almost no American rice is sold in
the market. Imported rice usually comes in 100-pound double jute
bags, gross weight, but sometimes in 48-pound mat packages, gross
weight.
10
OATS AND BARLEY
In 1928 imports of oats amounted to 1,156 kilos and imports of

barley to 1,156 kilos. Except for a few small sample shipments,
these commodities came entirely from the United States.
CORN
Corn is the principal item in the diet of the great majority of

Salvadoreans, and it is the most important crop produced for
domestic consumption. Often domestic production does not suffice,
and additional supplies are imported from the United States and
Nicaragua.
Domestic supplies were insufficient in 1928 and 5,021,228 kilos
were imported. About 90 per cent came from the United States, 9
per cent from Nicaragua, and the balance from Costa Rica. A few
small trial shipments have arrived from Chile.
Corn is usually imported in 200-pound jute coffee bags, gross
weight, the bags weighing about 214 pounds each.
The Salvadorean Government is doing everything it can to en
courage increased domestic production, and it is not unlikely that
withi, the next few years Salvador will be self-supporting in so far
as corn is concerned. The American corn is from middle-western
States, and it is shipped by rail to Pacific coast ports, and exported
from them.
CRACKERS AND BISCUITS
Salvador's cracker and biscuit imports are not large, but no ac

curate estimate of this business is possible since these commodities
are not listed separately in the oſlicial trade statistics. Our own
figures show that in 1928, we exported only 4,000 pounds of crackers
and biscuits to the Republic. Three-quarters of these were “sweet
ened and the remaining quarter “unsweetened.”
Competition from British and other European bakers is very
keen, and we are getting but a small share of the cracker business.
The European bakers sell considerable quantities of expensive
biscuits of ſhe rich sweetened type. Several well-known English
brands are the best sellers, but one Irish and one Scotch brand move
well. French, German, Belgium, and Swiss biscuits are seen on
merchants shelves and are, probably, more popular in Salvador
than elsewhere in Central America because of the tariſt preference
which they enjoy. American and British crackers pay the full
duty of 35 cents per kilo, gross weight, whereas, crackers and biscuits
from France, Germany, Belgium, Italy, and Spain pay the prefer
ential rate of 29 cents per kilo, gross weight.
The British brands have been established in the market, as else
where in Latin America, for many years, and are well liked by the
small class of consumers which can afford them. Assortments sell
well, and 1%. 1, and 2 pound tins, net weight, hermetically sealed
are most popular. The 1-pound tin moves best.
The American crackers which are in best demand are “sodas"
in the “unsweetened ’’ class and cream-filled wafers in the
“sweetened ” class. Sodas are sold largely in hermetically sealed
tins holding from 2 to 5 pounds of crackers, and in air-tight friction
| |
top tins of from 2 to 4 pounds, net weight. The 214-pound and

3%-pound, net weight, sizes are frequently seen. The glassine
envelope packets holding 3, 4, or 5 sodas are gaining in favor.
Tsually 54, 72, or 100 envelopes are packed to the tin. The cream
filled wafers come in tin-foil packets, packed 96 or 100 to the tin.
Small quantities of inferior quality biscuits and crackers are made
locally. These undersell imported crackers and, therefore, find some
demand among the poorer classes, chiefly in the capital.
No great or sudden growth in the demand for imported crackers
can be expected, but a gradual increase in annual purchases appears
probable. As per capita purchasing power grows, the market for
imported groceries will develop. In the meantime American cracker
bakers should be able by increased sales effort to wrest from their
European competitors a larger share of current orders. If, as is
more than likely, the United States is able to secure “most favored
nation ” tariff treatment, our competitive position will be greatly
improved.
It would seem also that American cracker makers could advanta
geously add to their line several Pritish types of “sweetened "
biscuits.
CANNED GOODS
Salvador presents but a limited market for canned goods. Ilow

per capita purchasing power, high cost to consumer, and competition
from local products are the principal limiting factors.
Canned goods are expensive because of heavy rail and ocean freight
charges, high import duties based on gross weight, and a tendency
of merchants to expect a rather high margin of profit. Freight
rates may decline somewhat with the opening to traffic of the Puerto
Barrios route, but no reduction in import duties is at present under
discussion, and none seems likely for the present, at least. Merchants
do not appear interested in reducing their margin of profit, com
plaining that with such a small turnover they can not operate on less.
It must be remembered that the average daily wage of the laborer
is less than $1, and that a can of soup, such as sells in the Unitel
States at from 10 to 12 cents, costs 55 cents retail in San Salvador.
A can of peas, such as we buy for about 35 cents, brings $1 in Sal
vador's capital. Obviously only the well-to-do class can afford such
luxuries as canned fruit and vegetables.
The market for American canned goods is further complicated by
the preferential tariff treatment accorded competing lines from six
IEuropean countries. These preferences are discussed under a sepa
rate heading in this report.
Fresh fruits, and vegetables grown in the country also compete
in a sense with our canned goods. Quantities of cheap tropical
fruits and vegetables are available for the poorer classes, and small
quantities of temperate-climate vegetables are grown for the
wealthier consumers.
The cans used are standard in almost all instances, as is the num
ber packed to the case. Cases should be bound with metal tape or
wire, and should be as light as is consistent with strength since im
port duties are charged on gross weight. For this last reason, saw
dust is rarely used to fill in between the cans. Practically no fruits
or vegetables are imported in bottles, but when they are ordered,
12
a kind of carton interior packing, such as is often used for eggs, is

preferred because it weighs so much less than sawdust. However,
shippers must be guided by the instructions of customers and by
their experience in exporting their own particular packages to simi
lar markets.
('anned fruit.—Local import figures do not classify canned fruit
separately, but United States statistics on exports to Salvador give
a rough idea of the volume of the trade, and a good gage of the
preferences for various kinds of fruit. In 1928 we sold Salvador
42,554 pounds of canned fruit, and from this it would appear that
probably the entire purchases for the year did not exceed 50,000
pounds.
Generally speaking, the preferences follow two lines; consumers
buy canned fruit of varieties not produced to any extent locally, and
they buy fruit which appeals from the point of view of price. The
following statement shows United States exports of canned fruit to
Salvador in 192S:
Pounds
I’eaches––––––. ------------ 7, 199
Prunes--------------------------- 6, 136
Pears ----------------- -- 4, 635
Cherries------------------------------------------------ 2,707
Apricots - 2, 481
Perries-------------------------------------------------
Apples and sauce
Pineapples ----------------------------------------------
All other----------------------------------------------
Total--------------------------------------------- 42, 5.54
NoTE.—Under the heading “All other " are included considerable quantities
of canned grapes, and particularly grapes of the muscat type. Other important
items in this total are fruit salad and fruit cocktail.
Canned goods, including fruit, from the United States pay the
general import duty of $51.40 per hundred kilos, whereas this mer
chandise when it comes from the preference countries, France, Italy,
Switzerland, Belgium, Germany, and Spain pays but $29.29 per
hundred kilos. I) uties are on gross weight.
However, European competition in canned fruit is not very severe.
France is probably the heaviest European shipper, and small quanti
ties come in from the other preference countries and England. Re
cently, French, German, Swiss, and English canned goods have been
noticed on merchant's shelves. Practically all the American canned
fruit comes from our Pacific coast.
No. 2% cans have the largest sale, but berries usually come in No. 2
cans. Some No. 1 calls are seen, and more recently some picnic size
cans have appeared in the stores. These small tins seem to be gaining
in popularity, and especialiy fruit salad and fruit cocktail are
selling in this pack, S ounces net contents. The No. 21% cans come
24 to the case, the No. 1, 4S, and the picnics, 72.
('anned reſº/ab/s.--The demand for canned vegetables is slightly
lighter than that for canned fruit, but local statistics do not afford
any means of measuring the market accurately. In 1928 we shipped
29,234 pounds of canned vegetables to Salvador, and with this as a
guide the total demand is probably between 35,000 and 45,000
pounds. -
-
13
Many types of vegetables are grown locally and the demand for
canned vegetables represents an effort to secure types not produced
in the country or, at least, in very limited quantities. Asparagus
and peas are the heaviest sellers, and almost all of the asparagus is
American. France competes actively in peas. The following state
ment shows the exports of canned vegetables from the United States
to Salvador in 1928:
l'ounds
Asparagus.---------------------------------------------- 21, 113

Peas j. 389
Beans–- 924)
Corn--- (527
Soups 3(51
Tomatoes •14
All other 771
Total--------------------------------------------- 29, 234
The tariff preference situation is the same as in the case of canned

fruit. French competition is keen, particularly in peas, and small
quantities come in from the other preference countries and England.
Nos. 1 and 2 cans are most popular, with the former leading.
Asparagus tips are in better demand than the full stalks, and the
No. 1 square can is most in evidence in the stores. No. 1 cans come
48 to the case, and No. 2 cans, 24.
Locally grown vegetables are available and cheap, though the
natives do not consume large quantities, except of root vegetables,
including various types of potatoes and yams, and imported canned
goods are beyond the reach of all but the small wealthy consuming
class. Rice, beans, corn, and flour paste products take the place of
green vegetables to a large extent in the diet of the average family.
FRESH FRUIT
Fresh fruit imports into Salvador are not listed separately. But
United States trade statistics show that in 1929 we shipped about
6,232,000 pounds of fresh fruit into the Republic. In all probability
very little additional fruit was purchased overseas, though imports
of tropical fruits across land frontiers from neighboring countries
may have been considerable.
Our interest is almost entirely in temperate climate fruits, however,
and in these items we had very little competition. I) uring 1929 we
shipped into Salvador about 359,000 pounds of apples, or 8,163
boxes of 44 pounds net weight each. These were shipped largely
from San Francisco, and probably included California fruit as well
as some grown farther north. Fairly large, firm, red apples which
take a good shine and are attractive in appearance are preferred.
The better-class grocers retail most of this fruit, but some is sold in
the small corner stores and by street vendors.
Grapes are second in importance, and in 1929 we shipped into
Salvador about 227,000 pounds of grapes. These are chiefly grown
and shipped from California, and are marketed much the same as
apples. Small quantities of European grapes are occasionally seen
in the stores.
In 1929 we also shipped 12,000 pounds of pears, 2,500 pounds
of peaches, and 49.00 pounds of other fresh fruit. The sales of
these items is largely confined to the better grade grocery stores
14
in the larger towns. The bulk of the population content themselves

with the cheap tropical fruits grown locally, such as bananas, pine
apples, oranges, limes, grapefruit, mangoes, pawpaws, etc. Im
ported fruit is more or less of a luxury, and is sold much as con
fectionery is marketed—in small unit sales of one or two pieces of
fruit for immediate consumption.
The demand for temperate climate fruit seems to be increasing, and
it is the price factor and not taste that is preventing its popularity
from growing more rapidly.
I)RIED FRUIT
There is a limited market in Salvador for dried fruit, but the

demand seems to be gradually increasing. Nearly all the dried
fruit is shipped from San Francisco. Import figures do not list
this item separately, so United States export figures are used as a
basis of measuring the current demand.
In 1929 we shipped to Salvador 40,098 pounds of raisins and
18,945 pounds of prunes, besides small quantities of apples, peaches,
apricots, and other dried fruits. Probably at least 75 per cent of the
dried fruit imported during the year came from the United States,
and possibly our share ran as high as 85 per cent. There is some
slight competition from Europe, chiefly in raisins and prunes.
There is a demand for raisins on the stem, especially for holiday
trade, and these come in 10 and 20 pound cases, net weight, usually
strapped together in bundles of 2, 5, or 10. Loose raisins in similar
boxes are also imported. There is a growing demand for the loose
raisins packed in 1%-ounce cartons, net weight, 250 or 500 to the
case. These last are usually sold under an advertised brand.
There is a considerable demand for dry prunes packed in 5-pound
airtight tins, net weight, 6 to a case, and in No. 2% cans packed 24
to the case. Other dried fruits are little known as yet, but they
should become increasingly popular because they sell at prices within
the reach of thousands of consumers, and thus appeal to a much
larger class than (lo canned goods. Bakers are also buying larger
quantities of dried fruits, and it appears reasonable to assume that
their purchases will grow heavier from year to year as they increase
the scope of their activities and the variety of their products.
Dried fruit from France, Germany, Switzerland, Spain, Italy.
and Belgium pay $24.81 per 100 kilos, gross weight, import duty.
while that coming from the United States and other nonfavored
countries pays the full rate of $35 per 100 kilos, gross weight.
France and Spain take full advantage of this preference, and the
other favored countries sell more fruit than they would otherwise
be able to market.
FRESH WEGETABLES
Salvador imports almost no fresh vegetables from overseas, accord

ing to official trade figures, but probably small quantities enter
across the borders of neighboring republics.
Tropical vegetables are produced in the country, but the population
does not consume temperate climate vegetables to any extent. Most
of the local vegetables are root crops, and include white and sweet
potatoes, yams, okras, and various vegetables of the squash type.
15
Green vegetables are not well known, but small quantities of lettuce,
tomatoes, and string beans are grown.
In 1928 imports of potatoes amounted to 6,220 kilos, of which
2,244 kilos came from the United States and the balance from
Honduras. They are usually packed in 100-pound crates, net weight,
but sometimes come in 50-pound crates. Very few onions are
imported, but those that do come in are packed in similar crates.
DRIED VEGETABLES
In 1928 imports of dried vegetables amounted to 356,762 kilos,

but of these only 7,396 kilos came from the United States. Mexico
supplied 261,816 kilos or about 76 per cent of the total. Nicaragua
stood second shipping 68,324 kilos, and Japan ranked fourth with
4,411 kilos.
Beans are the most important dried vegetable imported, and the
imports cover several distinct types and colors. The bean in greatest
demand is called “Mexican red,” and the “California red ”.. also
sells to some extent. Recently there has developed a demand for a
small white Japanese bean called “ Kotenashi.” American beans
usually come packed in 100-pound double jute bags, gross weight.
PACKING HOUSE PRODUCTS
Lard.—This is the most important packing-house product im

ported into Salvador, and in 1928, 150,399 kilos were brought in.
Of this total, 92 per cent, or about 138,000 kilos, came from the
United States. Small shipments were received from Nicaragua and
Honduras.
Most of the lard comes packed in 37-pound cans, net weight packed
two to the crate. However, sometimes 35-pound cans are used. Some
exporters use crates and others prefer cases, but the crate seems more
generally used in Salvador. Almost no lard comes in the small
5-pound pails, but some enters in large tierces holding about 360
pounds of lard.
Local animal fats are used whenever they can be obtained, but no
commercial packing plant has been established in the country.
Butchers retail what little surplus fat they have, and farmers put
aside what they can when they slaughter.
Hams and bacon.—There is a fairly good market for hams in the
Republic, but they are not listed separately in import statistics.
However, most of the hams came from the United States and our
figures show that in 1928, we exported to Salvador 31,476 pounds of
hams and shoulders. A few uncooked hams come in from England.
Hams weighing 10 to 12 pounds are preferred by the home trade,
but the store and hotel trade buy slightly larger—usually from 14
to 16 pounds. A few 6 to 8 pound hams are also sold, but the 10 to
12 pound sizes are the best sellers.
ooked ham in cans is gaining in popularity and when sliced is
usually sold in 44, 4%, and 1 pound cans. Half and whole cooked
hams are also packed in individual irregular shaped cans. The
French cooked ham appears to be in best demand at present.
Hams are packed in air-tight, moisture-proof wrapping, and usu
ally in cases with net weight of about 100 pounds. The number to
16
the case depends on the size of the hams. Some are also packed in
salt, and several merchants declared that they preferred this method,
saying that when it is used the hams keep longer in tropical climates.
However, in many tropical countries the salt pack is rarely seen.
The market for bacon is limited, probably not exceeding 2,000
pounds a year. Practically the entire supply comes from the United
States. The consumption of bacon is largely limited to foreigners
and cosmopolitan natives.
Canned meats.-Canned meats are not listed separately in the
import figures, but United States statistics show that in 1928 we
shipped about 6,000 pounds of canned meats to Salvador. Probably
we had about half the total business available in this line, whic
would indicate that total imports must have approximated 12,000
pounds.
In 1928 we shipped to Salvador 296 pounds of canned beef, 4,697
pounds of canned pork, 511 pounds of canned sausage, and 483 pounds
of other canned meats. The beef consisted largely of corned beef;
the pork, of deviled ham; and the sausage, of “Vienna style * sau
sage. Probably tongue was an important item in the “all other”
classification.
French competition is largely in meat and poultry pastes and
cooked ham, and Italian competition is chiefly in canned bologna.
Other European countries supply small quantities of miscellaneous
products.
Other meaf products.-Almost no fresh or pickled meat is im
ported. The population depends almost entirely on locally raised
cattle and hogs for its meat supply. On the whole, the natives are
not heavy meat eaters, and when they do buy meat, price is usually
the important factor. Poultry is raised by many small farmers, but
chicken is too expensive for the average Salvadorean, and the poultry
and eggs are carried to the nearest large town for sale to the salaried
class, hotels, and foreigners.
Native cattle is lean and the meat is usually tough. Small tender
loin steaks that are fairly good are to be had in most towns. Hogs
are also lean, and only when killed very young is their meat tender.
Very few sheep are raised and mutton is scarce. Goat meat is used
to some extent by the poor people. Poultry is usually lean and
scraggly, and must also be killed when young for best results.
Meat is nearly always eaten the day it is killed which partly
accounts for the scarcity of tender meat. Refrigeration facilities
are limited, but the well-to-do householder can keep meat in his
own ice box for an extra day or two, and improve it considerably.
There is some demand for tallow to be used in the manufacture of
soap and candles.
Prepared meats in tins, glass, crocks, or other packages are included
in the list on which the six European countries receive the tariff
preference. In the case of meats, the preferred rate is $29.29 per
100 kilos, gross weight, and the general rate is $51.40 per 100 kilos.
Only in the case of canned meats has this preference been of any
marked help to European exporters.
FISH AND FISH PRODUCTS
Though not large, the consumption of fish in Salvador is interest

ing because of the variety of types consumed and the keen competi
17
tion from European canners. Salvadorean statistics lump all fish

imports under a single classification, so it is difficult to estimate the
consumption of the various fish products and to decide what share
of the business in each type is going to the United States. In 1928
total fish imports announted to 165,315 kilos, and of this 68,779
kilos came from the United States. Spain supplied 42,580 kilos,
Erance, 28,948 kilos, and Norway, 12,820 kilos. We obtained about
42 per cent of the fish business.
Practically no fresh fish is imported, and very little salt fish enters
the market. Some salt cod comes from San Francisco, usually in
30 or 40 pound cases, net weight. More recently a small quantity
has been in 1-pound packets, 40 to the case.
The business obtained by France, Spain, and Norway consists
almost entirely of small sardine sales, whereas ours is divided between
California sardines, salmon, shellfish, mackerel, and salt cod. Spain
and France have a considerable advantage over other countries,
including the United States, which do not receive the preferential
tariff treatment, since prepared fish in any kind of packing is listed
among the items on which preferential duty rates are granted. How
ever, notwithstanding this preference, we are able to compete in all
fish lines, and only in sardines do we lose any considerable amount of
business to Europe.
Sardines.—The most important fish import is sardines, and these
come chiefly from the United States, Spain, France, and Norway.
We supply the large California sardines in 15-ounce oval tins, net
weight, and a very little in 71%-ounce oval tins. These are usually
packed in tomato sauce, but sometimes in oil and occasionally in
mustard. The tins are packed 48 to the case. In 1928 we shipped
70320 pounds of sardines to Salvador.
The best grade of small sardines comes from France in 4%-ounce
tins, net weight, and sometimes 4-ounce tins, both packed 100 to
the case. These come in olive oil, other oil, tomato sauce, and also
a hot pepper sauce. Cheaper small sardines enter from Spain and
Norway, and occasional shipments arrive from Portugal and Canada
(New Brunswick). Maine sardines are rarely seen in the market.
They are too expensive for the general trade and in the high-class
stores the French sardines are preferred. All these small sardines
are packed in cans of from 3 to 4% ounce net weight, but the tend
ency is for the cheaper grades to come in the smaller tins. Cans
are supplied with and without keys, but the cheaper grades usually
omit the key.
The general tariff rate on sardines is $35 per 100 kilos, gross
weight, and the preferential rate is $24.81.
Salmon.—The demand for salmon is limited, but almost the en
tire purchases come from the United States. Possibly some of
the cheaper grades originate in Canada, but practically all salmon
imported is shipped from San Francisco. In 1923 the United States
exported 5,463 pounds of salmon to Salvador.
The largest seller is the least expensive grade, the chum, and most
of it is nearly white in color. The pink salmon sells to a limited
extent, and there is a very small market for the more expensive
red types. The usual can for salmon is a No. 1 tall, but some of
the better grades sell in No. 9% flat cans.
18
Mackerel.—Some canned mackerel has been selling during the last

year, and this is put up in No. 1 tall cans which closely resemble the
salmon cans, with similar labels. This product undersells salmon,
and for that reason has gained a foothold in the market.
Tuna.-The demand for tuna is very light because of its cost to
the consumer, and it will be some time before it moves in appreciable
quantities. It sells in Nos. 44 and 1% flat cans.
Shellfish.-Shellfish move surprisingly well, and in 1928 the United
States shipped 3,544 pounds into Salvador. Oysters are the best
sellers and are packed in 5 and 6 ounce tins, 48 to the case. Shrimp
and lobster are probably next in popularity. Ilobster is packed in
Nos. 34, and 12 cans, while the shrimp is usually put up in 5 and 6
ounce tins. Doth are packed 48 to the case. Some crab meat and
prawns are also sold, packed, respectively, in No. 1% flat tins, and
5 and 6 ounce cans.
The general and preferred tariff rates are given in the section of
this bulletin devoted to the tariff.
DAIRY PRODUCTS
Salvador imports considerable quantities of dairy products each

year, and the most important of these are cheese, canned milk, and
canned butter. Preferential tariff rates are granted on cheese and
butter to the six favored European nations. Rates are given in
the section of this report devoted to the tariff.
Milk.-Very little fresh milk is produced in Salvador, and the
demand for this commodity is not large. It is used chiefly by the
middle and upper classes in the form of boiled milk to be mixed with
coffee for serving at breakfast.
In 1928 Salvador imported 37,132 kilos of milk of all kinds, ac
cording to official statistics. Separate figures for the various kinds
of milk are not given, but undoubtedly the bulk of that listed is
canned milk. Of the 37,000 kilos, 35,000, or about 94 per cent,
came from the United States. Small quantities were brought in
from the United Kingdom and Switzerland.
Evaporated milk is the type of canned milk in best demand. Very
little condensed milk is imported. The United States export figures
for 1928 show that in that year we exported to Salvador 51,965
pounds of canned milk, divided as follows: Evaporated, 48,016
pounds; condensed, 3,949 pounds. In view of the fact that we sup
ply almost all of the imported milk, these figures show clearly the
preference for evaporated milk.
The evaporated milk comes in 6 and 16 ounce tins, net weight,
and the condensed milk usually is packed in 14-ounce tilis.
Powered milk is beginning to enter the market, but so far is has
not gained any considerable foothold. It is usually packed in 1
pound, 6-pound, and 50-pound tins, net weight, packed, respectively,
24, 12, and 1 to the case. A few bakers buy powdered milk in barrels
containing 250 pounds.
The greater part of the canned and powdered milk brought into
the country is used by foreigners, invalids, and children. The con
sumption of prepared milk may be expected to increase as it becomes
more widely known and as the per capita purchasing power of the
population increases.
19
Cheese.—Salvador imports cheese in important quantities from

Honduras and Nicaragua, but up to the present very little has
entered from the United States. In 1928 the total imports amounted
to 293,000 kilos, of which 139,000 came from Nicaragua and 136,000
from Honduras. From these figures we see that these two Central
American countries supplied together nearly 95 per cent of the
total.
The Netherlands was the principal European source of supply
and about 11,000 kilos came in from that country. Only 1,256 kilos
entered from the United States.
The Central American cheese is usually made in large disks, is
white, and resembles somewhat an American cream cheese, except
that it is coarser and not so rich. The principal cheese brought
in from the Netherlands is the round, red ball type, often packed
in individual round tins of from 3 to 4 pounds, net weight. The
small amount of cheese that comes in from the United States is
usually packed in 5-pound bars, wrapped in tin foil, and packed
in separate boxes. Sometimes these boxes are packed in cases, about
10 boxes to the case; and sometimes they are bundled together with
metal wire or tape and shipped without any outer covering, usually
5 or 10 boxes to the bundle.
There seems to be an opportunity for developing our cheese busi
ness to some extent, principally among the consumers of above
average purchasing power. If we are able to ship an inexpensive
plain cheese in bulk we may be able to make some inroads on the
larger market.
Butter.—Butter is not generally used in Salvador, and cheese is
eaten with bread instead of butter. Some butter is produced in
the country, but this is usually consumed in the larger centers by
people of above average purchasing power.
Imports of butter are small and in 1928 only 4,860 kilos were
brought into the country. ... About one-quarter of this total came
from the United States, while Honduras and Nicaragua each supply
about one-third. In addition to the imports of butter mentioned
above, 796 kilos of butter substitutes were imported and all of this
came from the United States.
American butter is usually packed in cans of 14, 1, 2, and 5 pounds,
gross weight. It is said that formerly net weight was used but that
the change to gross weight was necessitated by the custom of Euro
pean butter packers to use gross weight.
The market for imported butter will probably continue to develop
slowly, but there is apparently little prospect of any considerable
growth within the next few years. Very probably domestic butter
production will increase at the same time, since the quality of the
local product is expected to improve.
MISCELLANEOUS FOOD PRODUCTS
Jams and jellies.—There is a small market in Salvador for jams,

jellies, and marmalades. Their delivered cost puts them beyond the
reach of the average consumer, and only the well-to-do class can
afford to purchase them. Possibly more of the cheaper types, packed
in cans, could be sold, if they were aggressively pushed and priced
at the minimum figures. Any increase in sales of the better grade
bottled products will be very slow.
20
In many of the middle and upper class homes, preserving of

tropical fruits is carried on to a limited extent, and the products thus
made of naturally much cheaper than the imported article. In 1928
the United States shipped but 883 pounds of jams and jellies into
the country, but this probably does not represent more than a quarter
of the imports. English jams, jellies, and marmalades are in best
demand, and some come in from France, Germany, and other Euro
pean countries, several of which have the advantage of preferential
duties.
Confectionery.—Salvador’s import figures for 1928 show that in
that year 53,876 kilos of confectionery were brought into the country.
Of this total, 24,001 kilos came from the United States and 16,902
kilos from the United Kingdom, our most serious competitor.
France supplied 6,918 kilos, Switzerland 2,108 kilos, and Italy 1,598
kilos. Small amounts came in from other European countries and
a few shipments from Honduras were reported.
Nearly 45 per cent of the imports came from the United States,
but since chewing gum accounted for a considerable part of our sales.
our share in the actual candy business was decidedly less. United
States export figures for 1929 will give an idea of the division of our
trade. In that year we shipped to Salvador 4,710 pounds of choco
late confectionery, 18,827 pounds of other confectionery, and 13,480
pounds of chewing gum.
There is a limited demand for package chocolates in Salvador,
but they cost too much for consumption to be large. England sup
plies the greater part of the package chocolates, and probably the
United States ranks second in sales of this candy. Loose chocolates
come from France, Italy, England, and the United States, but
probably France and England have most of this business. Bar
goods are largely American, but they do not sell very well.
In hard and sugar candies we seem to be leading, and our sales of
gumdrops, fruit drops, and Jordan almonds are worthy of attention.
Switzerland sells milk chocolate, in bars, for the most part. Some
hard candy enters from Germany, Holland, and Belgium.
Confectionery pays an import duty of 51 cents per kilo gross
weight, unless it originates in one of the preference countries. In
the latter case it pays but 29 cents per kilo, gross weight. Not
withstanding this, the two chief suppliers, the United States and the
United Kingdom, are “full-duty " countries. The other three im
portant sellers, France, Italy, and Switzerland, however, receive
the benefit of the preferential rate.
British brands of chocolates and hard candy have been established
in the market for many years, and they have earned a reputation
for quality and excellent packing and wrapping. They keep well
and seem less susceptible to climatic changes than most of the prod
ucts of competitors. In package chocolates the highly decorated and
gayly colored boxes from England appear most popular. Most
of their better grade candy is individually wrapped.
The United States has been more successful with medium grade
merchandise, and particularly in loose candy, bar goods, and small
package fruit drops. Though the limited per capita purchasing
power of the people prevents any rapid development in the candy
trade, a gradual increase in consumption seems likely. American
-
21
chewing gum has met with considerable success, and there seems
room for further development in this line. Great caution should
be taken in the matter of wrapping and packing, as well as in the
manufacture of special types of confectionery capable of withstand
ing the severe climatic conditions of the Tropics.
Sugar.—Salvador produces about 25,000 tons of raw sugar each
year and exports about 40 per cent of the total. In 1928 exports
of raw sugar (yellow crystals) amounted to 1,486 metric tons, of
which the greater part went to the Netherlands. Exports of washed
sugar for the same year amounted to 8,283 metric tons, of which
about 80 per cent went to the United States and about 12 per cent
to Honduras.
Most of the local consumers use the domestic washed sugar, but
the better class trade prefers the imported refined product. In
1928 imports of refined sugar reached a total of 17 tons. Most of
this consisted of granulated, but small quantities of lump are sold
in the larger towns. Practically the entire amount came from
the United States.
Baking powder.—There is a small demand for baking powder,
and practically the entire demand is supplied from the United States.
One well-known American brand supplies the greater part of the
household trade, but bakers, hotels, restaurants, and other large
consumers buy any one of several less extensively advertised makes.
The household trade prefers the small 4 and 8 ounce tins, net
weight, and other consumers usually buy the 1, 3, 5, and 10 pound
tins. The trade in baking powder is gradually increasing.
Tegetable oils.-In 1928 Salvador imported 58,716 kilos of olive
oil, the bulk of which came from Spain and France, each supplying
about equal quantities. Imports of cottonseed oil amounted to
63,724 kilos, of which Peru supplied 48,497 kilos, and the United
States but 13,442 kilos. Imports of miscellaneous vegetable oils
reached a total of 93,688 kilos, and of this total 64,836 kilos came
from the United States. Peru shipped 16.988 kilos, and the United
Kingdom 9,432 kilos. Most of the miscellaneous oil from the United
States was probably corn oil, and most of that from the United
Kingdom was probably soyabean oil.
Vegetable lard sells to a limited extent in the larger towns, par
ticularly the capital. It comes from the United States and I'rance,
but we have been doing most of the business. American shortening
comes in 1, 3, 6, and 50 pound cans, net weight. The volume of sales
depends largely on the movement of prices in relation to hog lard
prices. If prices can be maintained at a competitive level, con
sumption of vegetable lard should register a gradual increase as
the commodity becomes more widely known.
O
BUREAU OF-FOREIGN AND DOMESTIC COMMERCE

| WILLIAM L. COOPER, Director
REGEIVED
MAY 23 1930
O. S. U. Lt BRARY
FRUIT MARKETS IN EASTERN ASIA
A Joint Investigation by the United States

Department of Commerce and the
University of California
\OS
2.25
}Sp3 UNITED STATES
WASHINGTON : 1930

* * : .
FOREWORD
While American firms have been shipping fruit products to the

Far East for the last 20 years, it is well known that the market so far
developed is relatively small. Many people have raised the question
whether this market is capable of expansion. In order to answer this
question, an investigation of the fruit markets of eastern Asia was
undertaken as a joint project of the United States Department of Com
merce and the University of California, under the direction of Prof.
B. II. Crocheron. The object of the investigation was to make a
thorough study of the possibilities of eastern Asia as a market for
fresh, canned, and dried fruits, the problems involved in building up
the market, and to arrive at some conclusion as to what steps might
be taken to develop this market. While the investigation confirms
what we already know in regard to the situation, it is of value because
of the thorough method by which it was carried out and should help
to definitely settle many questions that have been raised in regard to
the possibilities of a wider market in the Orient.
The conclusions indicate clearly the limits of the present market;
they also point out that further expansion is largely dependent on the
development of greater purchasing power and higher standards of
living for the masses of the Orient. Many believe that this will
come slowly and that it promises a potential market some time in the
future. If this is true, it justifies careful planning and study of the
food habits in the Far East and careful watching on the part of export
ers for changes in standards of living, changes in food habits, and the
development of greater purchasing power.
This bulletin is essentially a summary of Professor Crocheron's
observations. The complete report will be published by the Uni
versity of California, and copics will be available to those who desire
to study the details of the investigation. These details are important
not only to those engaged in exporting fruit products but, it is
believed, also to all food exporters, as they give a great deal of infor
mation about the food habits, purchasing power, and customs of the
people, as well as a great deal of background about their own home
production of food and its uses.
Professor Crocheron acknowledges the material assistance rendered
by the representatives of the Departments of Commerce and State in
the Far East, and others who gave liberally of their time and
experience.
APRIL, 1930.
(II)
FRUIT MARKETS IN EASTERN ASIA
By B. H. Crocheron, Professor of Agriculture Extension, University of California, and W. J. Norton,
Specialist in Agriculture Extension, University of California
Asia is a large producer of fresh fruits, and in most of the countries

studied great quantities of native fresh fruits come upon the market
at low prices. In all countries native fruits are offered at such low
prices that they preclude the possibility of consumption of imported
fresh fruit by Asiatics except among a small group who may desire
an occasional novelty in the form of an apple, a bunch of imported
grapes, or an Orange.
The production of fruits of European varieties is increasing in
Japan, China, and Chosen. These fruits are produced at low cost
and, although often inferior to those grown in California, they sell at
prices low enough to command the native trade. In the tropical
countries native fruits are so abundant and so cheap throughout the
entire year that, in comparison, the imported fruits are extraordina
rily expensive. Competition from Australia, Japan, northern China,
and Palestine is increasing in the Asiatic tropics. These countries
ship by shorter haul and usually without refrigeration into these
markets.
Fresh imported fruits can only be sold in and near the ports of
most countries in Asia. For wide distribution, fresh fruit requires
excellent conditions of transportation and storage, otherwise the mar
ket must be limited to those places where the fruit is landed. The
interior of Asia certainly does not have good transportation or good
storage. In most of the countries of Asia, fresh fruits can not at
present get far beyond the ports.
Thus, markets for American fresh fruits in Asia are limited not only
by the buying power of the people, which limits the market for
imported commodities of every kind, but also by the great quantity
and low price of native fruits, by the competition from other countries,
by the perishable nature of the product, and by poor transportation.
Fresh imported fruit must, at present, find its purchasers among the
natives and Europeans close to the best transportation. Of these the
number who could be induced to buy fresh fruit from America is
small in comparison with the volume that must be marketed in order
to influence the general price level.
Finally, it is impossible at the present time to ship enough fresh
fruit under refrigeration across the Pacific to influence prices. At
present, all the ships of all the lines that touch at California bound for
Asia, or that are expected to voyage in 1930, have a combined refriger
ation space which, multiplied by the number of voyages that each
ship makes in a year, totals 118,219 tons of 40 cubic feet. In an
average month this is equivalent to 9,852 tons of space. But only
16 kegs of fresh grapes weighing 32 pounds each, can be stored in
40 cubic feet. Even if it is assumed that there would be no diffi
culty in selling 40 times as many grapes in Asia as at present, it would
110256–30 (1)
require more than all the refrigeration space in all the ships that run
between California and Asia loaded to their utmost capacity with
nothing but fresh grapes for the entire year to unload enough grapes
on the Asiatic market to raise the price in California 5 per cent.
SIZE OF PACKAGES
Small packages of canned and dried fruits present the best opportunity
to make large increases in our present fruit markets in Asia.-If Ameri
can fruits are to obtain large markets in Asia they must be so presented
that a comparatively small initial expenditure will buy a unit of the
product. The success of the exporters of oil, tobacco, crackers, and
soap to that continent is based upon several factors, one of which is
that the product is purchasable in small amounts by persons of low
income. The small tin of fruit and the small package of dried fruit
must be emphasized if markets are to be greatly increased.
Among all the California fruits in all forms, small packages of
dried prunes and small cans of peaches present the best general
possibilities for materially enlarged markets. Raisins from California
are already popular among the people of Asia. Even at present,
with the comparatively small effort which has been made to market
raisins in Asia, we sell there about 1.9 per cent of the United States
raisin crop. We sell in Asia only 0.3 per cent of our dried prunes and
0.3 per cent of our canned peaches, although the volume of raisins in
fresh form in California is about double that of prunes and four times
that of canning peaches.
Small packages of dried prunes might be made popular in Japan,
China, the Philippines, Siam, India, and perhaps even in British
Malaya and the Netherland East Indies under certain conditions.
Because prunes offer an opportunity for introduction as a medicine as
as well as a food, the possibilities which they present are even larger
than those for raisins. There is need for a laxative among those on a
rice diet, and coupled with this need is the general active desire for
greater health and strength. In eastern Asia the natives have long
sought charms and nostrums for that purpose, and from these they
have progressed to patent medicines. More recently they have gained
some knowledge of diet and its effect on health. America and Europe
are not the only places where vitamins are discussed; these new and
mysterious substances appeal to the psychology of the East. If the
lower classes are still steeped in the auguries and talismanic medicines
of the Orient, there is clear evidence that they are also interested in
the new health foods of which they are beginning to hear from mis
sionaries, European physicians, and the companies manufacturing
canned and dried milk, cereals, and baby foods. Dry prunes could
with truth and sincerity be promoted as an aid to health and strength
among many peoples of the Far East.
If the volume of prunes shipped to Asia became as great as the
present volume of raisins exported, the market in eastern Asia would
then consume about 1.9 per cent of the world's prune production (on
the average of 1923–1927), or slightly less than 3 per cent of the Cali
fornia prune crop. Such increase is entively within the bounds of
practical marketing possibilities, provided adequate funds were
available for promotion among the people of the Far East. Even this,
however, might not create any clearly perceptible increase in the
farm price of prunes.
-
Dried fruit to be popular in Asia must, at present, be offered as a
condiment or confection to be eaten dry out of hand. The use of
dried fruit in cooking might follow later. Because the people of Asia
do not know how to cook dried fruits and have no present place for it
in their customary meals, it would be much more difficult to intro
duce dried fruits for the purpose of cooking than for eating as a
sweetmeat to be munched at various hours of the day. The vast
amount of eating between meals, habitual all over eastern Asia, makes
this use a large one once it is developed.
Small cans of peaches and other fruits present a possibility for
expanded markets. China is a particularly favorable field for small
cans of various fruits. American canned fruits could come into their
own in China if they could be put within the possible range of purchase
of a larger number of people by means of a smaller package and then
made known to them as a high-quality product. The Chinese like
canned fruit, and they respect quality. The Philippines, Siam, Burma,
and Ceylon offer smaller opportunities, only because of their smaller
populations. Japan will present a large possibility for American
canned and dried fruits if the luxury tariff of 100 per cent is radically
revised downward. India might consume much larger amounts of
canned fruit than at present, if the market were consistently cultivated.
At present the large No. 2'ſ can of fruit is standard throughout
Asia, and its use is confined to the purposes for which it is adapted.
Canned fruit is mainly used only by the well-to-do; rich natives use
*t for gifts and for feasts; and Europeans use it when entertaining
friends. The common daily use of canned fruits in the home, similar
to that in America, is not prevalent anywhere in Asia except in a few
places among a small group of rich Europeans.
It is obvious that as long as the large can of fruit is the only size
used it will sell only to those who have enough money at one time to
buy a luxury of that magnitude. Furthermore, it will only be bought
by them for occasions for which the large can is fitted. Thus, the
large can has both a limited clientele and a limited use.
The small can would appeal to a far larger public, provided its price
can be reduced so that there is not too great a penalty for buying in
a small quantity. In many places it was evident that retail mer
chants, and perhaps wholesalers, were exacting as much profit from
the sale of a small can as from that of a large one. They perhaps
worked upon a sale basis rather than on a percentage. A saie was
a sale and it ought to bring in about so much return. Perhaps a high
price was charged because the merchant feared that the small size
would not sell and therefore hoped to regain the cost of the whole
case by the returns from a part of it.
Except in Japan and India, the Chinese merchant prevails from
north to south over all of eastern Asia. From Harbin to Surabaya
retail merchandising is in the hands of the Chinese. These merchants
usually stated that the small can of fruit would not sell because
nobody had ever asked for it. The Chinese are notoriously deficient
in creating a demand, but are active in supplying a demand once it
is created. The imagination of the Chinese merchant seldom goes
beyond what has been customary in the past.
Likewise, it was usual in many cities for agents of California packers
to express the opinion that the small can of fruit would not sell in
Asia because people only used canned fruit in entertaining friends and
4
for that purpose the reduced sizes were too small. Agents often
stated that, although they had placed small cans, in 1-pound and
8-ounce sizes, on sale, there was small demand for them; they had
hoped they would succeed but the attempt was a failure. Therefore,
the matter was settled in their minds; only the large No. 2% can would
sell and that only to the rich.
The fact is that no attempt has been made to sell the small sizes to
the potential consumer. Agents have, perhaps, induced and even
compelled the dealer to buy one or two cases of the small cans. After
waiting for some time, the agent inquired if the dealer wished to
buy another stock and was told by the dealer that he still had on
hand most of the cans he unfortunately bought. There was no
repeat order, so the agent correctly inferred that there was no demand.
Not anywhere has a real attempt been made to place the small
sizes before the consuming public in such a way as to create a demand.
Many householders declared they had never seen the small cans.
On investigation it often developed that these were on sale, if you
inquired for them, in their favorite store. The investigators frequently
found a few 8-ounce cans on the top shelf. The Chinese merchant
was often voluble in explaining that nobody asked him for them.
His prices were usually 10 to 50 per cent higher than the cost
warranted.
On the other hand, executives of the American corporations which
are successfully selling to Asiatics, or seriously considering the pro
posal as a possible American enterprise, expressed their belief that the
small unit of canned or dried fruit might reach a large sale if modern
merchandising methods were applied. Many educators, statesmen,
and social workers stated that the way to reach a large volume of sales
for American canned or dried fruits was through the introduction of
the small unit to the native consumer of the upper and middle classes.
All agreed that this could not be accomplished by merely inducing a
few merchants to place goods on sale. All realized that sustained and
skillful trade promotion must accompany their introduction and that,
if possible, the price should be adjusted so that a package would
retail for a coin of local currency.
Small packages of dried fruit, particularly prunes and raisins, offer
even better opportunities for reduction in size of package than do
canned fruits. The cost of the can imposes an obstacle that limits
the size to which it can be reduced—and at present canned fruit
requires a tin container. Containers for dried fruits, on the contrary,
can be reduced to a very small size and, if necessary, they can be sold
without any container at all, even one fruit at a time. They thus
present some of the merchandising possibilities of the cigarette which,
generally, has succeeded because it was possible to sell one cigarette
rather than a package of them.
The small can of fruit is essentially a new commodity for a new
public. Any development of fruit markets in Asia means that old
customers must use the fruit in new ways, or that new customers
must be found, or both. In either case, since the product is a luxury
rather than a necessity, the new customers must be introduced to the
product; the old consumers must have the new use put before them.
The Chinese merchant is not fitted to do either of the above. The
European agent is not equipped to do it for him. Passive order
*
taking on the part of the Chinese merchant and of the European

agent have been characteristic of the Asiatic market for American
canned fruits. So far the Chinese merchant has been active in
regard to underselling his competitors; and the European agent has
been active in supplanting the use of some other brand by that of
his own. Neither merchant nor agent has sought to create new de
mands. They could not do so. Money and time spent on creating
new demands merely put their competitor in a better position to make
lower prices. The competitor might meet trade promotion by the
expenditure of an equal sum on lowered prices. Thus everybody
scrambles for the few old customers. Nobody endeavors to create
new uses and new demands.
SELLING AGENCIES
The present system of collecting indent orders through agents ºrill not
decelop a large market in the Far East for .1merican fruits.-The present
system whereby various companies and corporations marketing fruits
under certain brands act through agents in Asiatic territory is cheap
but inefficient. Usually these agents also represent a large number
of manufacturers, among whom the exporter of American fruits is
one. Many agencies with limited personnel and small offices stated
that they represented from 20 to 200 manufacturers. They some
times represent everything from locomotives and airplanes to crockery
and canned goods. Their offices are often a medley of dusty and
cluttered samples among which a few rusty cans of American fruit
may, with persistence, be ſound in a corner. Because these agents
have not been furnished with any material funds for trade promotion
and because the active demand for American fruits is small, they
have in many cases found the business far from lucrative. In any
event, when handling such a large number of entirely different com
modities, their attention can at best be directed to any one of them
in small proportion. These agents accept or collect orders which
are indented to America.
The whole system whereby a merchant is required by draft or
deposit of security to order fruits farin advance, thereby anticipating his
wants, might be fairly efficient when an irresistible demand has already
been created; it is far from effective when the demand is latent or
nonexistent. For American canned or dried fruit to sell in any large
quantities in Asiatic territory, stocks must be maintained at central
points so that merchants can obtain the fruit quickly after their orders
are placed without the deposit of money for a considerable period in
advance.
Furthermore, the attention of an entire corps of people must be
directed toward the creation and supply of this demand. The Asiatic
market will not react to disinterested selling. At the present rate of
demand for American fruit, Asiatic merchants in large numbers will
not come to agents and demand it. In the past, the market has chiefly
been supplied through passive order taking, because the agents would
not, or could not, adopt any other method.
The writers can not claim to be the first to have made the above
observations. G. O. Woodard, American trade commissioner at
Shanghai, in an unpublished report, “The Canned Fruit Market in
6
China,” dated December 23, 1927, in discussing the situation in that

market stated:
In the two or more decades that American canned fruits have been offered
in the China market, with possibly one exception, not one of the canned fruit
lines sold has been represented by an organization in a position to study the
requirements of the China market with a view to formulating a constructive
selling program based on the peculiarities of this particular market. There has
been very little attempt, if any, at any really sound, constructive selling program.
There has been only passive order taking.
It is quite natural that this should be so since the general import house is
concerned with 20 or 30 or even 40 or 50 items more profitable from the stand
point of returns. They are, obviously, in the business for immediate profits and
'an not possibly become concerned with developing an organization to undertake
extensive sales promotion work of a pioneering nature that would perhaps only
yield results five or more years hence. * * * In the light of the actual returns
from two or more decades of passive handling of already established brands of
canned fruits, however, until such time as there is individual or group endeavor
put forth along the lines of studying the infinite peculiarities of the China food
stuffs market, it is quite patent that growth in sales will continue to be slow,
due primarily to passive and disinterested handling, lack of constructive sclling
programs, and the almost total absence of sound merchandising interest of what
ever nature.
The above statements, made with regard to the merchandising

system in China, might be applied with equal truth to the situation
thici ("hout the entire Far East.
METHODS OF TRADE PROMOTION
By skillful, ertensire, and sustained trade promotion it would be possible

to increase sereral fold the erports of certain fruits to the Far East.—
Although in Asia trade promotion has been successfully waged for
many American commodities, no considerable trade promotion has
been conducted for American fruits. The nearest approach was
made by an American association which about 13 years ago devoted
a small amount of funds to popularizing their product among the
peoples of the Far East. This resulted in a tenfold increase in the
export of raisins to Asia, so that at the present time the exports of
grapes in that form exceed the combined exports of all other fruits in
all forms.
Several factors contributed to this result. First, this organization
established its own representatives in the countries in which it was
chiefly operating. It did not operate through agents or indirect
representatives. Second, at central points it established stocks on
hand, and did not attempt to create a large business through indent
orders. Third, it packed the commodity in small packages. It did
not expect to make the large package, originated for use in America,
fit the needs of the Orient. Fourth, it made these packages and this
fruit known to the people through trade promotion in various forms.
It did not depend merely on advertising, valuable as that may be in
conjunction with other methods. Fifth, it established its own corps
of salesmen, who took orders for native and European wholesalers at
the expense of the association. It did not depend on Chinese whole
salers to create a demand.
Viewed from the standpoint of the large volume of the raisin crop,
the enterprise in Asia was on a small scale. The results have been
comparable to the effort expended. Larger funds and greater efforts
would have brought increased results. Nevertheless, compared
-
7
with the markets for other American fruits in Asia, the demand for
raisins is so much larger that it dominates the whole horizon.
To materially increase our markets, American fruits and their
virtues must be made known among the people to whom they are to
be sold. Except for raisins, American fruits are known among
only comparatively small groups of people in all the countries of the
East. The great majority of Chinese, Indians, and East Indians
have never seen a prune and would not recognize it iſ it were shown
to them. These people will not rush to demand the product, even
though a package be standing on the shelf of their favorite shop or
store. They must be told of its virtues and its uses. Such educa
tion over enormous territories and their crowded populations can
not be accomplished quickly or easily. Time, effort, skill, and money
would be required for the success of the enterprise. Nevertheless,
these same people have been educated to the use of kerosene oil,
cigarettes, wheat ſlour, baby foods, and other commodities which a
generation ago were entirely foreign to them. The task is not im
possible; it is merely diſticult.
Although the types of trade promotion adapted to various peoples
and lands vary somewhat, certain general principles appear to be
outstanding in the experience of orga lizations successfully selling in
this market. Among these principles are: (1) An efficient personnel
must be assembled, based upon high-class European or American
executives who know the people as well as the country; and these
must be supplemented with trained and educated natives. (2)
Extensive distribution must be accomplished before efforts are made
to induce the public to purchase; that is, the native population must
find the product available when they respond to the promotional
appeal. (3) The product must be purchasable in a small unit for a
small initial expenditure. (4) Extensive educational propaganda
must be conducted to enable the people to test the product through a
free or very cheap sample, and emphasis must be placed on the value
of the product and the benefits which will accrue from its use; in fruits,
the value to be emphasized is that better health and greater strength
are to be gained from their use; in such a campaign personal contact
with potential consumers at fairs, festivals, and other gatherings is a
more effective method. (5) Stocks must be on hand to replenish
supplies of retailers at short notice.
From a practical standpoint, the maintenance of an organization
of high-caliber personnel might prove one of the most hazardous
aspects of the enterprise. The number of p *rsons who have an inti
mate knowledge of the East and its people is decidedly limited.
Few of this number are of high ability.
()ften, under ()riental conditions, Europeans and Americans ſail to
measure up to the standards of business initiative maintained at
home. It is common throughout the entire Far East for Europeans
to work five hours or less a day. Often these hours are rendered
ineffective by other hours that come between. Whether an organi
zation, even of high personnel, could be assembled in Asia and main
tained at the level of business efficiency necessary to secure large
results is a question that should be seriously considered in any
definite proposals for such an undertaking. There are, of course,
many exceptions to the assumptions made above. Since, however,
they are exceptions rather than the rule, the proposal must face
conditions as they exist.
8
If large funds became available for a trade-promotion enterprise

in Asia and if these were skillfully employed, it then would be within
the bounds of reasonable expectation that within the next 5 or 10
years it would become possible to market in Asia several times as
much fruit as is now exported thereto.
In order to illustrate the statement that adequate trade promotion
over a period of years might increase markets for American fruits
several fold, the following calculation may be used:
India probably represents one of the most difficult countries for
trade promotion because of the peculiar food and religious habits
of many of its people because of the very high percentage of its popu
lation who live in hundreds of thousands of small villages and because
of the low average purchasing power of the population. Let us calcu
late the possibility India presents on the basis of the conclusions of
this report.
Almost 90 per cent of all of the 318,942,000 people of India live in
small villages. Most of them are very poor. To be conservative,
let us assume that not a single can of fruit can be sold among these
people, that all development of our future markets would lie entirely
in the towns and cities. In these, however, there are 32,500,000
people. The best estimates given to this investigation evidenced
that at least 10 per cent of the people in cities and towns could afford
to occasionally eat canned fruit, provided they desired to do so.
Therefore, let us further assume that 90 per cent of the people who live
in the towns and cities will not or can not eat canned fruit under any
conditions whatsoever. We have now brought our possible potential
consumers down from about 319,000,000 to 3,250,000.
In India, American canned fruit now sells almost entirely to
Europeans and to some of the half-castes. A very few Indians also
eat it. There are in India about 174,000 Europeans and about
113,000 half-castes. Thus, the total white and half-white population
is somewhat less than 300,000. If, to be again conservative, we
assume that all of these now eat canned fruit and would eat no more
under trade promotion, and if we likewise assume that an equal
number of Indians, numbering 300,000, now eat canned fruit, which is
probably far beyond the fact, we then have a present consumimg
public of certainly not more than 600,000. Many of the Europeans
do not live in towns and cities. They are scattered at every admin
istrative, office throughout India. Many others do not eat any
measurable amount of canned fruit. But if, to be on the conservative
side, we deduct all the Europeans, all the half-castes, and 300,000
Indians who already may possibly consume canned fruit from the
upper 10 per cent of the city and town population, we have thus further
reduced our possible new consumers in all of India down to 2,650,000.
These 2,650,000 are men, women, and children. The average size
of the family in India is 4.9 persons." It would be fair to assume, then,
that among these whom we are discussing there are at least 540,000
heads of families. These are natives who belong in the upper 10 per
cent of the population of towns and cities and who do not now con
sume American fruits. If through trade promotion these heads of
families could be induced to buy occasionally one can of fruit it would
increase our present markets several fold. If these heads of families
each bought the equivalent of one No. 2% can of fruit once in two
1 India Year Book, 1928. Published by “The Times of India,” Calcutta.
9
months, they would consume 3,240,000 cans of fruit a year; or, at 24

cans per case, 135,000 cases a year. The present consumption in
India is about 50,000 cases. Such increased consumption therefore
would be over two and a half times our present markets. In other
words, we would sell more than three and a half times as much as we
now do.
It may be contended that not all the upper 10 per cent of the fam
ilies in towns and cities could be reached. Doubtless this is true.
However, it can be contended likewise that the consumers who would
be reached would probably consume canned fruit more frequently
than once in two months. The contention might further be made
that many of the 90 per cent of the population in towns and cities, not
counted in this estimate, would consume canned fruit occasionally if
it were made popular among the upper classes of the population. Fur
thermore, it can be claimed with equal strength that the popularity
once having been created in India, material consumption could be
developed among some of the people in the villages who spend large
amounts of money on weddings, funerals, and other festivals. It can
further be claimed that, under trade promotion, Europeans could be
induced to consume more canned fruit than at present. On the whole,
our basis of estimate is probably very conservative.
The above discussion is given merely to indicate that because our
present markets are small, the primary question involved in any
scheme of trade promotion is not the buying power of the population,
but whether ultimately those who have this buying power can be
induced to include American fruits among the luxuries they purchase,
and if so, whether the consumption created would repay the time,
effort, and money expended. In every country of eastern Asia, the
per capita income is very low; everywhere the masses of the people
are poor. However, in considering the development of markets for
American fruits we are not concerned as yet with per capita wealth
nor with the average man. Our sales of imported fruits in Asia are
so small that we have not yet saturated the market among those who
have the money to purchase.
The question might be raised as to what can be done to improve our
present fruit markets in Asia without the expenditure of any large
funds for trade promotion or any considerable revision of the present
marketing methods. Under such conditions, little more can be ac
complished than is now being done. There are no areas in Asia with
active wants for California fruit at present prices that are not supplied.
Something, however, would be accomplished through giving greater
prominence to the smaller sized package, either of canned or dried
fruit. Furthermore, various packers might find it profitable to estab
lish at favorable points representatives instead of agents. This, of
course, is more expensive since the overhead must be carried, whereas
the establishment of an agency merely requires the payment of a
small commission on whatever sales are made. Nevertheless, it is
striking that in many places of the East the popular brand which rules
the market is that for which a representative has been established over
a term of years or where an agent is employed who sells only a particu
lar brand. If the various companies could make appropriations suffi
cient to enable these representatives to do a considerable amount of
free sampling and a limited amount of advertising in the vernacular
press, sales would doubtless increase.
10
RETAIL PRICES
Lower retail prices would increase markets for fruit in Asia.-If there
is such a thing as a “price market,” it is in Asia. Here, if anywhere,
small differences in price determine whether a purchase shall or shall
not be made. Even the so-called middle classes are poor when
judged by American standards. Small economies become large
when transported to the Far East. Reductions in price, even though
small, are therefore of great importance.
One of the difficulties faced by imported fruits in the Far East is
the fact that their local prices are quoted in the currency of the
country, which has a unit of value lower than that of the American
dollar. The Chinese dollar, the Indo-Chinese piaster, the Siamese
tical, the East Indian guilder, and the Indian rupee all have values
that range around four-tenths of an American dollar. But such is
the psychology of the East, that the value of these coins come to
appear, even to Europeans, as large as that of the American dollar.
Many of these coins resemble in appearance the American silver
dollar and its subdivisions, and procure as much of local service or
value as would the similar coins in America. The silver dollar of
China closely resembles in size and appearance that of America.
The quarter-guilder of the Netherland East Indies looks like the
American 25-cent piece; the 10-cent piece of Ceylon is almost a
counterpart of the coin by the same name at home, and yet these all
have but 40 per cent of the gold value of similar American coins.
However, locally for many things they are practically their equivalent.
In taxi fares, personal service, and small purchases the coin bearing
the same name produces the same return. Thus, those resident in
the Orient come imperceptibly to feel that a dollar of Chinese currency
is as valuable there as the American dollar at home.
The American housewife in China, calling at her favorite provision
store inquiring the price of a can of peaches is told that it is on sale
for one dollar a can. She exclaims that this is very expensive and
turns immediately to some local bananas which she is told are 2 cents
each. She is likely to go home with a half dozen bananas, meanwhile
exclaiming at the high price of American fruits. If at home she were
told the price was 40 cents, she would probably not consider this as
beyond the possibility of purchase, even though it were a few cents
higher than the price to which she was accustomed. In the translated
currency her sense of economy prevents the purchase.
Thus, entirely without thought of deception, she may write to
friends at home, “I saw some California grapes for sale to-day and,
would you believe it, they were 50 cents a pound. Of course they were
too expensive for us to afford. When I think of the grapes selling for
almost nothing on the farms at home I wonder why some one doesn't
send grapes into this market.” Because she has become accustomed
to the coinage of the East, she entirely forgets to mention that the
price quoted is in local currency and that the grapes were actually
on sale at 20 cents a pound in the currency of those who read her
letter in America. She likewise ignores the 7,000 miles that stretch
between the farms on which these grapes were produced and the
Chinese fruit store where they were for sale. She knows little of the
large number of necessary services performed in conveying these
grapes from one place to the other and arranging them for display
11
before her eyes in a fruit store convenient to her home in a distant

land.
One of the factors militating against the sale of American fruits in the
East is, thus, the low unit of local currency. Slight decreases in price
which may be brought about by improved methods of marketing and
transportation are of high importance, because these decreases become
multiplied when rendered into the local currency of the country where
the product is sold.
If America were able to sell its fruit in Asia at radically lower prices
than those prevalent at home, large markets might be quickly devel
oped. At present we attempt to sell fruit at higher prices in Asia
than in America. Thus, in lands where native fruit is always cheaper,
and often more abundant than in the United States, we strive to sell
our competing fruits at higher prices than at home. If it is difficult
to sell high-priced fruit to the comparatively rich Americans, it is
much more difficult to sell it at still higher prices to poor Orientals.
In Asia many American commodities sell at prices as low or lower
than they do in America. The great American tobacco and oil com
panies first embarked upon the extensive development of Asiatic
markets because of a situation identical with that which faces fruit
growing in California. In both oil and tobacco there arose an in
creased and uncontrollable production. To save prices from going
to the bottom, increased consumption was necessary. To secure this
increased consumption in Asia it was recognized that oil and tobacco
must sell at low prices. Kerosene must successfully compete with the
native vegetable oils; cigarettes must compete with native tobacco in
cheroot or pipe. Even to-day, the selling price of kerosene oil and
cigarettes is as low or lower in most of the countries of Asia than in
America.
Any measure that would remove a considerable percentage of the
deciduous fruit production of California from customary marketing
channels would not only raise prices but would also increase the gross
return. In the spring of 1929 a frost decreased the expected tonnage
of deciduous fruits in California by about 23 per cent. The remaining
77 per cent was marketed for about $27,000,000 more than the entire
crop would have brought had there been no frost. Although many
individual farmers whose entire crop was lost suffered disaster, the
State as a whole benefited by a larger return then if there had been
no abnormality of weather.
If an increased return resulted from destruction of almost one-fourth
of the crop, an even greater benefit might be expected through market
ing the surplus among new consumers at low prices. Three results
might accrue from such a procedure: (1) The overproduction would
be removed from the present markets, thus causing a greater gross
return; (2) some revenue would be derived from the sale of the surplus:
(3) new consumers would become acquainted with the product and
thus educated to consume it so that the demand would continue even
though prices were gradually increased.
However, to sell fruit in the Orient at lower prices than in America
would require a complete and radical revision of the whole sales
Yrogram, the discussion of which is not within the scope of this report.
Nevertheless, in presenting the results of a study of marketing in
Asia it is necessary to emphasize that if prices were radically reduced
the entire picture would change and the possibility of increased
demands become vastly greater.
12
RELATION OF EXPORTS TO DOMESTIC PRICES
Even extensive trade promotion, backed by large funds, can not create
in Asia large enough fruit markets to materially help in raising farm
prices within the probable duration of the present price depression.—At
the present time the most desirable result that could be accomplished
for the farmers of California who are producing the fruits which have
ruled at a low price would be to market a sufficient volume of Cali
fornia fruit in Asia or elsewhere so that the price level would be moved
upward in the home markets to the point of cost of production or
above. In order to do this it would be necessary to develop, within a
short time, a demand sufficient to remove from the present markets in
America and Europe considerable percentages of California's various
fruit crops. The so-called surplus varies for different fruits. In
some fruits an increase in demand of 25 per cent or more would prob
ably be required to restore the price level prevalent at the time the
trees were planted.
Within the probable duration of the present price depression, and at
present export prices, there does not appear to be any opportunity to
develop markets in Asia of sufficient magnitude to accomplish this
greatly desired result. Even though a very extensive trade promo
tion campaign were conducted with all its attendant costs, a market
can not be created for fruit at present prices in large enough volume in
short enough time. Since, unfortunately, our present exports to
Asia are small, even an increase of several hundred per cent would not
alone be sufficient to solve a surplus problem of the magnitude of that
now extant in California.
Surpluses in fruit production ultimately cure themselves through
the coming of old age to trees and vines so that the acreage gradually
decreases. Surpluses are aiso cured through the gradual development
of demand. Such development may come about through the increase
in the population of America and an increased per capita consumption
of fruit. Surpluses are also cured by lowered costs of production, and
the pulling out of acreages on which costs are too high. A profitable
price is that which is above cost of production. These costs vary
from man to man and from farm to farm. Those first emerge from
under a surplus market who have the best land and the most skillful
methods. Although it is probable that low farm prices will, under
present market demands and marketing methods, continue for some
years, they will ultimately be restored to equilibrium through the
normal action of economic forces.
Trade promotion for certain California fruits in eastern Asia will
accelerate the movement toward equilibrium between costs and
returns, but Asiatic markets can not at prevalent prices be created
quickly enough to act as a cure in the present crisis. However, it
must be remembered that so far as can be foreseen, these surpluses
are likely to be recurrent during future years, despite our developing
system of economic education. Even with an adequate system of
warnings and economic forecasts, human nature is likely to be the
same in the future as in the past. In times of relatively good prices,
greatly increased plantings will probably be made. These bring lower
prices in their wake.
-
13
FOUNDATION FOR FUTURE BUSINESS
If conducted for a considerable period of time, trade promotion might

secure markets in Asia which would be of material assistance in sustaining
prices in future years.-Even though extensive trade promotion in
Asia might not succeed, within the next five or ten years, in marketing
a volume of the California crop comparable to the present surplus or
that now sold in Europe, it is perfectly clear to all students of Oriental
affairs that great changes are coming in Asia and that within the next
quarter of a century these peoples will rise to an economic level which
they have not heretofore enjoyed. Furthermore, it is probable that
this rise in financial security will mean the adoption of European
standards to a degree not hitherto deemed possible. Any extensive
trade promotion for American fruit in Asia should be undertaken,
not only with a view to developing the present markets but also with
the object of building for the future. If California is to continue to
develop her fruit industry faster than the increasing population of
America warrants, markets must be built abroad. Such structures
require long periods of time.
Growers in other countries are trying by educational methods to
develop the demands for their product. India taxes every grower of
tea on the basis of his production. The funds thereby accumulated
are devoted to an attempt to induce the world to drink more tea,
preferably from India. Extensive advertising and educational cam
paigns are in operation in India, America, and elsewhere. It is said
that the per capita consumption of tea in India has been increased
50 per cent, but that in America the campaign has not been so
successful.
Australia has an organization, fostered by the Government, to
export the dried fruit in excess of the needs of that continent. . A board
annually determines how much dried fruit must be exported and the
price that must be charged for it to secure its sale outside the country.
Fruit to be shipped abroad is thus sold by a sort of pool at a lower
price than that charged in Australia.
In considering the possible development of American markets in
Asia, it should be realized that backward countries may be expected
to go through three periods of development. In the first period there
is a small market for European foodstuffs, as well as for other imported
commodities, because the people have not yet felt the need for them
and have low standards of living caused by their limited purchasing
power.
The second period is when, through the development of hidden
resources in timber, mines, and water power, and through the use of
machinery and manufacturing devices, there comes a great rise in the
economic level of the people so that they have the desire for higher
standards of living and the luxuries that go with them.
The third period is when such a country seeks to manufacture these
luxuries itself, thereby lessening the outgo to other nations. Such
countries usually attempt, through prohibitive tariffs and otherwise,
to develop their own manufacturing and agricultural industries in
order to provide a higher economic return and to improve their balance
of trade.
The United States has passed through the first two stages of
development and is now well advanced into the third. Japan is
14
rapidly emerging from the second into the third period. Most of
the countries of the East, however, are still in the initial era. After
they pass from the first into the second development, as they are
likely to do within the next quarter of a century, they will present a
marked opportunity to those countries of the world that by work in
advance have prepared themselves to take advantage of the oppor
tunity. Ultimately, in the dim future, these countries will, like Japan,
merge into the final development wherein it becomes much more
difficult than in the intermediate period to find large markets for
those commodities which can be produced or manufactured within
their own borders.
Viewing, however, the immense masses of the population it is
improbable that this last phase will be reached within calculable
time for most of the areas of the Far East. It is rather for the period
during which the countries of Asia may be expected to develop and
expand that the California fruit grower has an opportunity to occupy
these markets.
O

REGEIVED
MAY 29 1930
C
* 9. EBRARY | EUROPEAN
MOTION-PICTURE INDUSTRY
IN 1929
AF
05
25es
PS54.
UNITED STATES
WASHINGtoN : 1930
Fo* sale by the Superintendent of Documents,

-
Washington, D. C. - - - Price 10 cents

FOREW ORD
The outstanding development of the European motion-picture

situation in 1929 was the advent of the sound film. In practically
every country sound films were exhibited during the year, and in
most of them gave every evidence of duplicating the degree of popu
larity attained in the United States.
This new condition, of course, resulted in a rather unsettled state
of affairs. Imports of American film into Europe amounted to
110,031,551 feet in 1929, as compared with 69,998,393 feet in 1928.
2uropean production of films was considerably less than in 1928,
however. Exhibitors found difficulty in obtaining enough silent
films to satisfy demands, but were hesitent about installing expensive
sound-synchronization equipment in their theaters until they could
be sure the additional revenue would offset the expense. At the end
of 1929, however, there were 1,670 European houses wired for sound
films, and many more planned such installations early in 1930. Most
of the apparatus installed is of American origin, but European pro
ducers are turning out much equipment in that line.
New theater construction was not as great as in 1928, and many
small theaters discontinued operations. The trend was toward
larger and more modern houses.
This report is the bureau's third annual publication on the Euro
pean motion-picture situation. It was compiled in the motion
picture division from reports submitted by oversea representatives
of the Department of Commerce. The motion-picture division is in
close touch with developments in the film industry throughout the
world and welcomes specific inquiries from interested American
firms.
Burt a u of Foreign and I)omestic Commerce.
MAY, 1930.
(II)
EUROPEAN MOTION-PICTURE INDUSTRY IN 1929
INTRODUCTION
Europe found itself confronted during 1929 with great difficulties

in assimilating the sound film. The silent film had not ceased to
provide satisfactory entertainment, and a change was consequently
unnecessary for economic purposes. In fact, sufficient headway
had been made in silent films during 1928 to inspire European pro
ducers to proceed during 1929 with plans for greater stability and a
more even level of production. IIowever, the suddenness with which
the sound film succeeded in the United States threw the European
motion-picture business into an unsettled condition from which it
was only beginning to emerge at the end of 1929.
Great Britain was the only European country whose motion
picture industry made any progress during the year. All other
countries, either through legislative difficulties, patent litigations,
credit stringencies, or a caution resulting from the uncertainties of
sound-film entertainment, failed to keep pace with the world develop
ment in this new field of sound films.
Feature-film production decreased very considerably under the
record figures of 1928; new cinema construction lagged and was not so
systematic as in the immediate preceding years; progress in the wiring
of cinemas for the reproduction of sound films was disappointing;
legislation unfavorable to foreign interests further hampered film
trade, because of both the general effect of the Franco-American
controversy and the growing Etropean appreciation that existing
measures tending to restrict film imports are not efficacious now that
the sound film is a factor.
One outstanding feature of the European situation was the readiness
with which the British film organizations grasped the significance of
the sound film as their possibility of achieving a leading place in the
industry, after a distinctly unsuccessful 1928 season, when an over
production of silent features was quite suddenly faced with a greatly
restricted outlet as first and second run cinemas were demandin
sound films. Another feature was the strong indication that the
dissimilarity in the respective tastes generally of the American and
continental markets for the sound film, particularly concerning the
language question was gradually being overcome. Continental
film leaders are now of the opinion that not only is the sound film the
entertainment of the future, but that the multilingual feature, for
export purposes, is a necessity to amortization of production costs.
FILM PRODUCTION
Under conditions existing during the year, it was natural that

feature-film production in Europe would suffer materially. Primarily,
Europe lacked money for experimental purposes; its producers were
(1)
2
compelled to await definite signs of public approval of the sound film

before launching into any serious production schedule, and its exhibi
tors felt the necessity of biding their time before purchasing at great
expense equipment for the reproduction of sound films until such time
as a definite film supply was obtainable. As a result, European
production fell from 521 features in 1928 to 412 features in 1929, a
drop of 21 per cent, while production costs declined from $24,260,000 in
1928 to $15,135,500 last year, a decrease of approximately 38 per cent.
Many films were produced during 1929 with both silent and sound
versions, and, in the latter case, to a lesser extent reproduced multi
lingually. This obviously makes an exact determination of produc
tion cost impossible.
The table below, based on reports from Department of Commerce
offices in Europe, lists by countries the number of feature films pro
duced during 1929, together with the estimated production cost, as
compared with 1928. It will be seen that European film production
continues to center in Germany, France, and Great Britain. It is
believed that the output of the other countries had very little, if any,
first-run success outside of their country of origin.
FEATURE-FILM PRODUCTION IN EUROPE
1928 1929
Country -
*...* Estimated
produced CoSt
*.*| Estimated
produced cost
- - - - - - -- - -- ----- ------ ------- ---- - –- – --!—l-— — — —

Austria - 23 $350,000 19 $275,000
Baltic States- 1 s 6 14,500
lgi 3 45,000 4 60,000
- - - - - - - - - - - ------------ - 4 8,000
19 200,000 25 300,000
t; 240,000 2 70,000
4 50,000 4 40,000
94 3,750,000 52 2,080,000
221 11,000,000 192 8,000,000
95 7,610,000 ° 40 3, 200,000
3 7,500 . 2 6,000
2 75,000 4 70,000
S 320,000 4 100,000
3 60,000 3 75,000
14 150,000 12 180,000
1 , 500 2 8,000
3 27,000 4 19,000
1() 150,000 | 20 300,000
S 216,000 : 12 325,020
----------- -------------- 1 5,000
3 (*) ------------------------
521 24, 200,000 412 15, 135, 500
| No record.
The following table shows the number of feature films censored

during 1929 in Germany, France, and Great Britain, the origin of
those reviewed in the first two, and the change from 1928:
3
FEATURE FILMs CENsor ED IN GERMANY., FRANCE, AND GREAT BRITAIN
1920
go
Item 1928 Per cent
Nunuber change
from 1928
* , i.H. M. A. N. Y. I
Total features - - - - - - - - - - - - - - - - - - - - - - - - - - - 520 42; — 19.90

American features. - ...--- * - - - - - - - - - - - - - - - - - - - - - 20, 142 –30. 90
(Herman percentage of market - ...— . . . . . . - - - - - - - - - - - - - - - - 42. 50 45. 1 +2.60
American percentage of market - - - - -- - - - - - - - - - - - - - - - - - 39.42 33.3 –6. 39
Other foreign percentage of Inarket . . . . - - - - - - - - - - - - - - - - - - - 18.08 21.6 +3.52
Fiz A No E I
Total ſeatures.---------- - - - - - - - - - - - *83 437 –20.50

A111erican features - - - - - - - - - - - - - - - - - - - - 3.13 211 –32.04
French percentage of market . . . . . . . . . . . - - - - - - - - - - - - - - - - - - - - 16. 11 11.9 –4. 21
AImerican percentage of market - -- . . - - - - - -- - - --- - - - - - - - - - - - 53. 69 48. 3 –5, 39
Other foreign percentage of Imarket - - - - - - - - - -- - - - --- 3(). 20 40, 0 +9.98
(, it i.vt is kit Ai N
Total ſeatures-------------------------------- - - - - - - - - - - - - - - - - - - - - - - - 77.8 758 –2.58
THEATER ("ONSTRUCTION
A gradual disappearance of the preponderant small-size cinemas

was evident during the year, with their places being taken by con
siderably fewer but larger houses in localities capable of supporting
such houses. These were constructed purposely with a view to the
exhibition of sound films, hence more intensive consideration was
given to acoustics than heretofore.
It is impossible to state in detail the changes in cinema construction
during the year. Accurate statistics have never been available; and
no records seem to be kept systematically of houses eliminated
entirely from business, enlarged for purposes of better commercial
possibilities, or converted to cinemas from other types. Neither is it
possible to determine the net changes in the total seating capacity.
However, it is possible to estimate with more accuracy the number of
new cinemas that were constructed during 1929. As in 1928, Great
Britain was far ahead of all other countries in this respect. Cinema
expansion continued in Germany, too, while France made some little
progress.
The following table gives the estimated number of new cinemas
constructed. While only a relatively small decrease is revealed
for 1929, it must be borne in mind that this was due chiefly to the
favorable British situation, where cinema changes were hastened
on account of the popularity of the sound film. The Continental
state of affairs was not nearly so encouraging.
4
ESTIMATED CoNSTRUCTION of Motiox-PICTURE THEATERS IN EUROPE IN 1929
1928 1929
Country i I !
| New Seats New Seats
, cinemas , added cinemas added
-Austria- - - - - - - - - - - 3 3, 200 | - - - - - - - - - .--------->

IBaltic States 2 2,300 | 4 3.25)
Belgium - - 10 14,000 10 | 7,500
Bulgaria - - - - - - ----- 1 i 450
("zechoslov 4() 53,000 50 , 22,000
I)enmark 2 2,500 ---------------------
Finland- 15 6,000 3 1,800
France-...------ - - - - - - - - 35 | 30,000 20 20,000
Germany ---- - - - - - - - - - - - - - - - - - - - - - - - - - 157 105,000 123 80,000
Great Britain - - - - - - - - - - -- - -- - - - - - - - - - - - - - - 70 90,000 171 200, 000
(Freece ----- - - - - - - - - - - - - - - - - - - 1 - - - - - - - I 451)
Hungary---...- . - - - - - - - - - - - - - - - - 8 9,000 - - - - - - - - -]. - - - - - - - - -
Italy-------- - - - - - - - 35 50,000 l 4.500
Netherlands---- - - - - - - - - 2 2, 550 7 4, 100
Norway. . . . . . - - - - - - - - - - - - - - - - - - 1() 70,000 1
Poland-...- . . - - - - - - - 5() 15,000 - - - - - - - - - - - - - -
Portugal - - - - - - - - - - - - - l 1, 500 t; 5, 100

Ruinania------- - - - - - - 2 1, 700 ! 3,000
Spain ----. 11 4, ()00 11) 15,000
Sweden - - - - - . 12 7, 500 7 4.000
Switzerland.- - 1w 15,000 10 6. 000
Turkey - - - - - - - - - - 4 3.000
Yugoslavia - - - - - - - - - - t; 2. (MM)
Total . - - - - - 484 430 $83.55)
MARKET FOR AMERICAN FILMS
Aside from the innumerable petty problems involved in the dis

tribution of films, censorship, music rights, and patent litigation,
the chief problems of the American film industry in Europe were
the language barriers and legislation inimical to the film importer.
The latter problem is probably the more important, inasmuch as
it is impossible to foresee market conditions when these indefinite
restrictions remain, just as it is extremely hazardous to make financial
investments in an attempt to strengthen demand for motion pictures.
In some instances, it is felt that existing film restrictions have been
invoked in order to compel, or at least attract, American invest
ments in local film units. In any event, American investments in
Europe on film projects, especially on the Continent, are a hazard
so long as the film quota or contingent system, with its susceptibility
of alteration to the needs of local industry remains a factor.
There is very little doubt in the minds of European film leaders
that the United States will eventually be able to furnish enough
satisfactory sound films for European audiences, though the question
of production cost of foreign-language films in its relation to possible
yield induces the thought that America will be unable to compete
with European production. This, however, resolves itself into a
matter of bookkeeping and experiment. Attractive play-dates will
continue gradually to expand, and as new distribution policies attended
by reduced overhead expenses enter into the situation, these should
contribute to profit in the continental market.
It seems to be an accepted fact that little progress can be made in
the immediate future in the small European markets, on account of
the language diſficulty. In the past, these markets have offered only
small markets, at best, for American feature films. Now, it appears
that the few wired cinemas in these countries will provide more
-
º)
lucrative returns for sound films than previously was the case with
silent features, provided that sound films are offered (a) in the
country's second language; (b) as synchronized with sound effects
without dialogue, or (c) with a little foreign dialogue and domestic
subtitles superimposed on the film.
The question of the so-called “medium ” markets, which are in
themselves desirable, but which for the time being do not appear
to be able to support talking films in their own language, is quite
serious. They appear already to be tiring of films in foreign dialogue
and are clamoring for a change.
While it is too early to prepare a guide covering present-day
distribution, in view of indefinite plans of the various world production
centers, the following division of countries by types of film that
serve the best purpose is submitted:
Group I, which can be supplied with films in one of the leading languages
(English, Spanish, German, and French) are Great Britain, Germany, France,
Belgium (French), Switzerland (French and German), Spain, and Austria
(German).
Group II, whose territory is too small for economic production of films in the
domestic language and where the exhibition of films in the second language is
#.”
Ola,InCl.
Sweden, Norway, Denmark, Italy, Czechoslovakia, Hungary, and
Group III, small countries where films should be released in the second language
(indicated in parentheses) that are merely sound synchronized or have native
titles superimposed on the screen, are the Netherlands (German), Portugal
(Spanish), Turkey (French), Greece (French), Bulgaria (French or German),
Rumania (French), Yugoslavia (German), the Baltic States (German), and
Finland (German).
In the above consideration the second language was picked from
the four languages that seem to be preferred in the production of
multilingual films. It should be borne in mind, however, that in
some instances, the second language, though readily understood, is
unpopular on account of national sentiment.
Specifically, the outstanding obstacles of the American trade
during 1929 were the patent litigation in Germany and the 6-month
recess in sales activities in France on account of the Franco-American
film-quota controversy. Both of these instances caused unfavorable
indirect reactions in other channels.
Patent litigation occurred in several diſſerent countries, but with
out serious effect or annoyance to the American trade except in the
case of Germany. There the German sound-film interests secured a
court injunction against the use of American reproducing equipment
alleged to infringe German basic patents, and later obtained a court
decision sustaining the original petition, which, pending an appeal
to the higher court, seems to preclude the possibility, barring an
arrangement outside of the courts, of the installation of adequate
American sound-film equipment in German theaters. This situation
caused reverberations in other directions. German cinema owners
became hesitant about wiring their houses in view of the closed
doors to American equipment; and the apparent necessity of pur
chasing German-made equipment or none at all failed to hurry them,
since there was a great lack of sound-films on the market and most
of the American producers were refusing to release their sound films
for reproduction on German-made apparatus. Negotiations are now
under way between the respective electrical companies involved for
a settlement out of court.
6
In the Franco-American dispute, American subsidiary companies

in France found it necessary to suspend sales operations from the 1st of
April to the early part of September because the French Government
proposed to raise the existing film quota from 7 to 1 to 3 to 1 after
October 1. As a consequence, American business dropped very con
siderably from the 1928 volume.
SOUND FILMS
Although slow in starting, the principal European producing

countries (Great Britain, Germany, and France) show, even in their
present small output, a standard in sound films which compares very
favorably with their former production of silent films. The first
issues, naturally, were very crude, but subsequent features indicated
an ability to overcome technical faults previously apparent. Al
though much depends on the development of directing technique, it
is believed that European producers' sound films with dialogue will
more nearly suit popular tastes of European audiences than their
silent films did. Unquestionably, the idiomatic expressions and
subtle humor contained in the dialogue of domestically made Euro
pean feature films will be more appealing to the cinema-going public
than those of foreign manufacture.
It is evident that the European market for recording equipment
was limited during the year to three major systems, two American
and the Tobis-Klangfilm of Germany. All other recorders appeared
to be inadequate.
The high cost of these instruments has necessarily retarded their
sales in Europe, yet at the end of 1929, 22 different European studios
were wired for the recording of sound films and 48 recording sets
were employed. Of these, 25 were of American manufacture, as
shown by the following table:
EUROPEAN MOTION-PICTURE STUDios Equip PED For REcoRDING Sound
[As of I)ec. 31, 1920]
- - Studios American! Foreign Total

Country wired recorders recorders recorders
Great Britain---------------------------------------------- 10 14 6 20
France--------------- - 5 9 9 18
Germany - - - - - - - - - - - 2 ---------- 5 5
Italy -- 1 1 ---------- I
Spain.----- 1 ---------- 1 1.
I)enmark- | | -------- I 1
Poland.---- - - - - - - - - - - - - - - - - - - - 1 1 !---------- I
Austria--------------------------- - - - - --------------- 1 ---------- 1 1
Total------------------------------------------------ . 22 25 23 48
In addition, there are in Europe several sound-equipped trucks that

are used for location work. Some of these are of American manu
facture. Some American production companies have their own sound
trucks in Europe engaged in “shooting” sound news reels.
The European market is overcrowded with different types of
apparatus for the reproduction of sound films. The majority of
these, however, may be classified as distinctly inferior and will not be
able to stand the heavy competition of the few leading types. Lack
of servicing alone will limit their market, and many installations of
*
this inferior type will have to be scrapped in favor of more substantial

systems. It can not be denied that the present sales prices of the
leading makes are altogether too high for the numerous small cinema
proprietors, and consequently these exhibitors will be obliged to dis
appear from the trade within a year or two unless the cost of the lead
ing types of reproducers is reduced or satisfactory small equipments
within their purchasing power become available.
Available statistics show that 1,670 European theaters were wired
for the reproduction of sound films as of December 31, 1929; of these,
936 involved American apparatus, and 734 foreign. The following
table describes this situation by countries:
EUROPEAN THEATERs EQUIPPED For Sou ND-FILM ExhibiTION
(As of December 31, 1929)
- - - | -
Cine- Ameri- Foreign
- -
| Cine. Ameri- Foreign -
Country • IIlas cºsts º Country ; Inas, cºsts º

wired stiod stiled wired |alsº stalled
|
–––––– – , , , - I -- |
Austria-- - 23 1j S Netherlands. 57 5 52
Baltic Sta 3 ------- 3 || Norway---- 7 5 2
Belgium- 11 !! -------- | Poland. ... -- N S ----
Bulgaria---------- ---------------- - - - - - Portugal. . . - - - ºl--> ---------

Czechoslovakia - - - 14 S 6 Rumania - - - - - 3 2
Denmark - - - - - ---- 18 15 3 Spain - - - - - - - - - - , 15 ll 4
Finland-- - 4 ! -----. . " Sweden.------------------ i #5 1t; 29
France 166 92 74 Switzerland-------------- 10 : w 2
Germany- 223 ''. ------- 223 || Turkey . . . . -- - .. . 2 2
Great Britain 980 (388 292 Yugoslavia ------ ---- i 13 | 11
TC&C'e------------ - - - 7 ! 3 i ------- -:----- - - - - --
Hungary--
taly----------------
-
--
1()
51
6
2.5
1
2;
Total.------------- lºo |
93%;
CHANGES IN LEGISLATION
The sound film seems to have dislocated the basis of most of the
serious European legislative restrictions on film imports. Though
the British films act seems adjustable to new conditions, the Conti
nental regulations are not. Either the countries involved found it
very difficult to turn out sufficient product to maintain their quotas,
or, where a particular law or regulation restricts imports, insufficient
foreign films were available to meet domestic demand. Yet changes
during 1929 were inconsequential.
Great Britain is entering upon the third year of its film control as
prescribed in the law.
Germany, unable to cope with the present state of affairs, decided
to maintain its status quo as an experiment, but with the reservation
that, if necessary, special provisions would be issued in connection
with the importation of sound films.
After negotiations extending over six months, already mentioned,
France extended the ratio of seven imported films to one French film
until October 1, 1930, with a possibility of a further extension of one
year.
Hungary instituted a change in its decree, which, in addition to a
slightly larger tax for merchandising by film importers, also affects
the short sound film.
Austria widened its film quota just before the new year to permit
of some additional licenses for necessary features for exhibitor demand.
111834—30—2
8
The liberal regulations of Italy continued without change, though

the Government did issue an order banning the exhibition of sound
films with songs and dialogue in a foreign tongue. The prohibition
relating to songs has since been lifted.
The entertainment-tax scale continues in Poland to the extent of
practically destroying the market for foreign films. Increased taxa
tion on amusements and a special censor tax of 2 lei per meter further
depressed the Rumanian situation.
The Portuguese regulation prohibiting the use of foreign languages
in titles is understood also to become effective as regards dialogue in
foreign languages, although no cinemas were wired for the reproduc
tion of sound films during the year.
From the American point of view, continued success in Europe
while aſſairs are being adjusted to new conditions would seem to
depend on the continuance of the British appreciation of American
sound films, a sufficient supply of sound films adaptable to the ready
Continental market, the clarification of the patent litigation which
has practically closed the German market to our product, the mate
rialization of the plans of leading American sound-equipment manu
facturing companies in the wiring of European cinemas, the gradual
liberalization of European quota restrictions, and the normal growth
f fair-sized cinemas.
OUTLOOK OF EUROPEAN MOTION-PICTURE INDUSTRY
In view of the rapidity of change in the film industry, it is quite

impossible to indulge in detailed prophecy for 1930. Intensive re
search being made in technical developments foreshadows great
progress, particularly in the production and servicing of sound record
ing and reproducing equipment. The rationalization of the European
industry obviously requires both the elimination of the weaker produc
tion companies and the addition of adequate cinemas in key cities.
The coming of sound films has, of course, complicated the entire
European film situation, but with energetic European efforts being
made to attract new capital and effect important mergers, there seems
every prospect that this new development will prove helpful rather
than harmful to European interests.
It is naturally supposed that the future movement of American
films will be considerably smaller than during the silent-film days,
since fewer units of American output will be adaptable to European
tastes and since also play-dates will be very much fewer through the
small number of wired theaters, together with the extended runs of
sound films in first and second run houses that are wired. This
smaller movement will, however, greatly reduce the number of films
that have formerly been merchandized in Europe without profit.
In the matter of restrictive legislation, of which the American trade
is the chief object, it appears probable that this will continue in
several countries as a protection to the local industry, although there
are signs of increasingly strong protests on the part of the public, as
well as the exhibitors.
Viewing the outlook as a whole, 1930 gives promise of raising the
film business to a new peak of prosperity in Europe. The year will
not be without many problems and diſticulties, but its general effect
should be one of distinct advancement. From the American stand
point, Europe should prove to be a distinctly better though a highly
competitive market.
9
GREAT BRITAIN
By Martin H. Kennedy, American Trade Commissioner, London
The British film industry during 1929 suffered from several indus
trial reverses, and it is confronted at the threshold of 1930 by many
momentous problems.
Prior to 1927, owing to the inroads of foreign films, the film industry
of Great Britain reached a crisis which was met by Parliamentary
intervention in the form of the quota act. Under the stimulus of this
act the beginning of 1929 found confidence in the future of the film
industry restored, and it was claimed that a market for British films
was assured.
As a result of this protective measure, numerous I3ritish film com
panies were organized and public subscriptions to their flotations
reached huge totals (figures placed by some at £35,000,000 and
£40,000,000). Many new studios were erected, and numerous silent
films were produced. So great were the activities in the industry,
however, that it was generally predicted that large quantities of
silent films beyond the requirements of the quota act would result.
At that time several thousands of cinemas throughout Great Britain
were doing good business.
In the meantime the British industry did not realize the rapidity of
the progress being made by the sound film and was not fully prepared
for its invasion of the British market. As anticipated, 1929 closed
with a large surplus stock of silent films and a demand for sound
pictures which the British industry was not prepared to supply.
A large number of companies whose activities were devoted to the
production of silent films were not financially able to change over to
sound production and were forced into liquidation. Several thou
sand cinemas in Great Britain which find their receipts diminishing
because of the demand for sound pictures are confronted with the
necessity of installing sound equipment.
In face of this, the news of the rapid development of the wide
screen and color has been sufficient to disrupt plans for the future, as
it is argued that difficulties of financial installations for sound in the
cinemas fitted only for silent films are considerable, and the thought
that the coming of the wide screen will necessitate remodeling cine
mas and the installation of entirely new projection apparatus is so
disquieting that the consensus of the cinema press and industry is
that concerted action is necessary to bring about a postponement of
the introduction of the wide screen until such time as the industry
has recovered from its disruption resulting from the invasion of sound,
and that a powerful governing body to control, advise, and direct the
industry under the direction of a competent leader should be organ
ized in the meantime.
THEATERS
It is estimated that 171 theaters were constructed in England

during 1929. An average of about 1,200 new seats was installed in
the new theaters erected during the year, making a total added seat
ing capacity of approximately 200,000. This compares with approxi
mately 70 new theaters in 1928 with an added seating capacity of
about 90,000.
It has been roughly estimated that about 250 theaters were recon
structed during the year in Great Britain. In considering this ques
1()
tion, however, it has been found difficult to determine the meaning

or limit of the term “reconstruction.” Reconstruction is so general
and varied and between such wide limits that no accurate idea can
be given of the actual number of theaters in which the changes can
be dignified as reconstruction. There are, furthermore, no records
now available by which it can be determined how many new seats
were added by reconstruction.
During the past year about 980 cinemas were supplied with sound
equipment. Of this number 693 have American equipment, 177 Brit
ish Talking Pictures, 21 Edibell, 20 Electrocord, 18 Melotone, 14
Filmophone, 13 Syntok, 4 each New Era and Celebritone, 3 each
Klangfilm (German) and Classitone, 2 each Naturetone and Syncro,
and 1 each Brooks, Clarion, Coronel, Majestone, Marshalls, and
Own Make.
PRODUCTION OF FILMS
Approximately 40 feature films were actually started during the

year. Silent versions were made of all of these and, in addition,
about 35 of them were eventually synchronized in one manner or
another. This compares with a 1928 production of 95 films.
The best opinion seems to indicate that the cost of the average
silent film ranges between £5,000 and £12,000. This is somewhat
below the cost of the sound films, as it is figured that the average set
ting for the silent film, cost of artists, etc., are less than the cost con
nected with the sound film.
In view of the fact that sound films are produced on a more elaborate
scale than the silent films, the average cost of a sound film is considered
to be from £12,000 to £20,000. It has been estimated that such sound
pictures as Blackmail, High Treasons, and Atlantic cost £24,000,
fºo,000, and £40,000, respectively.
Statistics collected from English studios and published in an English
film trade magazine show that when a picture costs £15,000 the
amounts paid are approximately as follows:
To actors, supers, and staff - - - - ----------------------- 423, 000
To director----------------------------------------- 1, 500
To his assistants------------------------------------- 1, 750
To the scenarist ------. ------------------------------ 1,000
To the photographers and operators -- - - - - - - - - - - - - - - - - - 1, 000
The 40 films referred to were produced by the following companies:

The British International Pictures (Ltd.) - - - - - - - - - - - - - - - - - - 21
The Gaumont Co----------- - - ------------------------ 5
Gainsborough Pictures. -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 6
New Era Pictures--- - - - - - - -------- -- -- ----- - - -- - -- - --- 1
British Instructional Pictures -- - - - - - - - - - - - - - - - - - - -------- 1
British and Dominion Films Corporation - - - - - - - - - ---------- 4
Welsh Pearson-Elder Films - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 2
There is little evidence of great progress being made in short sound

subjects. The British International Pictures is said to be making 1 a
week, while Gaumont is accredited with 2 per week. The former,
however, has plans to make about 12 pictures, while the latter has
plans to make about 8. Gainsborough and British Sound Films are
contributing to the number of short sound films at irregular intervals,
but no definite report as to their production is at present available.
The cinema press is authority for the statement that at the present
time there is little real competition in the sound short field being
!
11
encountered from the Continent, but that the foreign market has
been increased by American short comedies some 300 per cent, and
that the volume is increasing rapidly. It is believed that the pos
bility of further business is brighter than it has been, particularly as
shorts seem to lend themselves much more readily than lengthy pro
ductions to the multilingual plans and to the employment of foreign
talent.
Ten studios thus far have been equipped for sound-film production.
Five of the studios are equipped with American recording apparatus.
DISTRIBUTION
According to the Kinematograph Year Book, there were actually

released in the United Kingdom during 1929, 663 feature films, of
which 495 were American, 87 English, 60 German, and 16 French.
Of the American films released, 53 were sound films, of which 36 also
had silent versions. The following table contains an analysis of this
situation:
FILMS RELEASED IN THE UNITED KINGI) oxi IN 1929
- |
Month Aºk English, German French other Total
January - - - - - - - - - - - - - - - - - - - 35 !I 3.
February - - - - - - - - - - - - - - - - - 38 t, s
3| 7 3 '' .
39 7 6
- - - - - - - 4t; ; 4
29 4 3
43 .} 6 |
: 34 5 2 |
- - - - - 46 8 3 --
- - - - - - - - - - - - - * 48 9 1
November- - - - - - - - - - - - - - - - - - - - - - - tº 56 1() 7
December--- . . . . . -- - - - - - - - - - - - - - - - - - 50 1() 10
Total . . . ---- - - - - -- --- - * 495 87 60
! 3 of these were silent versions of sound films.

* A film entitled “The Romance of Runnibede,” produced in Australia by an Australian company.
* 7 were silent versions of Sound films.
* 6 were silent versions of sound films.
* A film entitled “Shiraz” produced in India by an Indian company.
t 11 were silent versions of Sound ſilins.
" 9 were silent versions of sound filins.
* Including 53 sound films.
According to these figures, the American share of the market for

1929 was 74.66 per cent as against 71.72 per cent in 1928, when 558
out of a total of 778 films distributed in the United Kingdom were
American. The British share of the market also rose, from 12.21 per
cent in 1928 to 13.13 per cent in 1929, while the other foreign partici
pation declined from 16.07 per cent to 12.21 per cent.
The opinion of the local press and writers on cinema subjects, as
expressed by one of their number, is in substance as follows:
Owing to the advent of the sound films, there was more or less of an upheaval
in the British film industry, and, as was the case in America when talking pictures
arrived, chaos ensued; but after the first few months, when it became evident
that the public was taking to this new form of entertainment, there gradually
came about a more organized state of affairs.
British film companies suffered by reason of the fact that they were almost
unprepared and had a number of silent films, upon which a great deal of money
had been spent, relegated practically to their shelves. Those exhibitors who were
fortunate enough to get their houses wired immediately showed an increase in
revenues, and their example was very quickly copied by others.
12
The British public's reaction to sound films was exactly the same as that
observed in America. They probably were not exactly tired of the silent film,
but interest was undoubtedly waning.
The new type of entertainment has acted as a tonic, and there is not the
slightest shadow of doubt that it is “going strong," not so much on the novelty
value but on general entertainment value. -
That American prestige held up remarkably well is evidenced by

the fact that, with the exception of some half-dozen British sound
pictures, the majority of the pictures shown were American, and it
is generally conceded that the type of American pictures shown has
added greatly to the prestige of the American film producer.
Exhibitors are definitely impressed with the necessity of making
sound installation and believe that sooner or later they must pro
vide for sound films. This situation confronts about 3,000 exhibitors
whose theaters are not yet wired, but it is thought that within a
year or so almost all cinemas will have some sort of sound apparatus.
Plans for production in 1930 are still somewhat indefinite, but
companies like the British International Pictures, Gainsborough,
Gaumont, British and Dominion Film Corporation, Welsh Pearson
Elder Films, New Era, Associated Sound Films, and one or two
small concerns all have a number of pictures scheduled for produc
tion, and although no accurate estimate can be made, production
plans for 1930 provide for about 75 pictures.
The only legislation inimical to the interests of American films in
prospect is that which has been suggested in several quarters which
has to do with a possible amendment to the film quota act, to pro
vide for a 25 per cent quota of British films distributed. It is claimed
by those who are sponsoring the amendment that the quota act,
which was designed to foster and stimulate British production, in
reality has the opposite effect. It is argued that the minimum cost
of a picture should be £15,000, and that this would have the effect
of compelling the superior product, on the theory that distributing
concerns would find it a profitless task to attempt to carry 25 per
cent of inſerior films and would insist upon the higher grade of pro
duction. There is a growing feeling, however, that the quota act is
an artificial protection to the industry and therefore uneconomic,
and that any amendment to the act will not aid the industry but
accentuate the difficulties it is now experiencing, and that the chances
of any amendments to the act are remote.
FRANCE
By George R. Canty, American Trade Commissioner, Paris
During 1929, depression in the French film industry reached the

lowest level in a decade. Chief factors underlying this state of
affairs were the abrupt change from silent to sound-films and the
protracted film-quota controversy which kept American films out of
France for six months. Domestic production of feature films slumped
44.6 per cent under 1928 figures, total motion-picture consumption fell
25 per cent, the American supply of feature films dropped 32.6 per
cent, while German films continued their steady increase since 1924
with a 6.5 per cent jump.
The supply of feature films censored for the French market since
1924, by countries of origin, is shown in the following table.
13
FEATURE Motiox-Picture FILMs CENsoft ED IN FRANCE
Country of origin 1924 1925 1926 1927 1928 - 1929
France------------------------------------ --- - 35 74 94 52
Semi-French 1- - - - - - - - - 7 2 ----------
United States- - 444 368 3 211
Germany---------------- 3. 2 1:30
Italy-------------------- 7 3
England-- 23 24
Austria--------------- ! -- -------
Russia--- 2 !,
Denmark- l 3
Sweden--- 4 l
Spain----------------- 4 '----------
Belgium-------------- 3 ---------
Poland.------ 2 :
Czechoslova l !
Ukraine •)
China
1" -
Armen - 1 - l
Miscellaneous- 1 2
Total------------------------------- ' 693 704 565 581 583 4.38
1 Pictures taken on French territory and under French direction, but with not less than 50 per cent or
Inore than 75 per cent of the leading rôles filled by French artists.
The table shows a market-consumption decline of 145 features, or

25 per cent, from 1928, a condition which was due chiefly to fewer
exhibition dates being available on account of longer runs of sound
films. The total market supply for the year, however, is the lowest
since 1919.
The decline was absorbed fully by French and American producers,
since other gains or losses were relatively insignificant. French pro
duction declined 44.6 per cent, and the American supply decreased
32.6 per cent. German producers continued their progress since 1924,
with an increase of 6.5 per cent. The British supply held its 192S
prestige, despite the lowered consumption of feature films.
The share of the French feature-film market supplied by the leading
ºut” in 1929 as compared with 192S is shown in the following
table.
SHARE or FRENch FEATURE-FILM MARKET Acqui RED BY LE \DIN (; St. PPLIERs

[In per cent;
iº's
( "ount y lºs.” -
<! . . ( "hange
Shale foliºs
United States ------ - - - - 3.7 4x. 3 –5. 1

Gerinany--------- . . . . . 2). :) 29. 7. +8. S
France. - . - it; 1 | 1. ) — 1. 2
England-...- : - - - 4 3. 3 –– 1..3
Other countries--- - .3 4. S —() 5
The French loss is ascribed to difficulties encountered in readjusting

production to sound-film output and to caution in silent-film output
in view of uncertain demand. The American loss is due entirely to
nonparticipation in the French market from March 30 to September
25, when the quota controversy was being discussed. The German
and British gains were due to unexpected demands for feature films
while American features were off the market and not to any material
improvement in quality or popularity.
14
DOMESTIC PRODUCTION
Domestic production by companies in 1929 as compared with 1928

is brought out in the following table.
PRODUCTION OF FEATURE MOTION PICTURES IN FRANCE
|
Producer 1928 1929 Producer 1928 1929
!
ſ --- - - - -- -------
Franco-Film--------------...---------- S. 8 || Mercanton--------------------------- 1
º
Aubert --------------------
- - - - - - - - - - - - - - - - - - - - - 9
() º Sºpas
4 "| G. C. P. C-------------------------------------------------- }
AlbatroS-Armor- - - - - - - - - - 4 4 º' Distributeurs Reunis 1
I)e Venloo---- ---------- - 4 2 3 |
De Merly---------------------------- 1
Pathé-Natan. . . . .-------..... ------------- "2 Il Soſar-------------------------------- l
Erka -------------------- - 2 2 : Ste. Générale des Films---------------|------ 1
Isis Film - - - - - - - - - - - - l * . Pºtit--------------------------------- 3 : 1
Fº
20c: Films. - - - - - - - - - - - 2 ; | \lºg|
Etoile Film--------------------------- Tri-
- - - - -------------------- ;
Nice. Films - - - l 2 | Vandal et IDelac ---------------------- !----- | 1
Braunherger ---- 2 42 |
| |
|
Ste. Filins Historiques---------------. . . . ---, Total-------------------------- | 51 i 52
l |
: Aubert produced 1 sound film, La Collier de la Reine, . . - -
* Tobis process. De Venloo produced 1 sound film, La Nuit est a Nous, in England under an American
process. -
* Pathé Natan produced a sound film, Les Trois Masques, in Germany under Tobis process.
* Braunberger produced a sound film, La Route est Belle, in England under an American process.
No production costs are available, but it is generally estimated that

the average was $40,000 a picture. Many productions, to be sure,
cost considerably less than this amount, but a few so-called “supers,”
on the other hand, attained very high amounts. This would indicate
a total production cost of slightly more than $2,000,000, as compared
with $3,750,000 during 1928.
DISTRIBUTION
Distribution of feature films during 1929, segregated by companies

and countries of origin of the films involved, is detailed in the follow
ing table.
DISTRIBUTION OF MOTION-PICTURE FILMS IN FRANCE IN 1929
l
| . .
- -
I)istributors
-
American German French | English Russian | Other
American companies--------------------- - - - - - - - - - - 2 - - - - - - - - - -
Aubert-Franco-Film ---------------------- -
Alliance-Cine-European------------------- ,----------
Armos-Albatross------------... -------
IDe Venloo-----------------------------
IDistributeurs Reunis------ - - - - - - - - - - - - - - - -
Mappemonde-----------------------------
Meric
Metropole--
Pax-Film------------------------------------------
Seyta.------------------------------------
Soſar Film-------------------------------
Super Film - -
Victoria Film
Wilton Brockliss--- - - - - - - - - - - - - - - - - - - - - - - -
Other----------. . . . . ------------ - - -
Total - - - - - - - - - - - - - - - - - - - - - - -
15
Although 211 American features were distributed during 1929 as

compared with 313 during the previous year, only 133 were handled by
American companies maintaining their own subsidiary organizations
in France. This latter figure compares with 231 for 1928, a loss of
42.4 per cent, which resulted from American inactivity during the
quota negotiations. The remaining 78 American films distributed in
France during 1929, as compared with 82 during 1928, were handled
by independent agencies. Incidentally, American exchanges in
France distributed but 3 foreign films during 1929 as against 17 dur
ing 1928. PRODUCTION OF SOUND FILMS
Much is being published concerning new recording processes in

.* but very few of the equipments have actually been manufac
tured.
The Gaumont company has equipped two of its three Paris studios
with Gaumont-Peterson-Paulsen sound recorders. The Tobis studio,
at Epernay, has 3 Klangfilm installations. The former Cineromans
studios at Joinville, now controlled by Pathé Natan, have installed
7 American apparatus and 1 Klangfilm. The Haik studio at Cour
bevoie has 3 Cinevox Haik installations. The Natan studio, rue
Francoeur, Paris, has 2 American truck recorders. In addition, there
are 4 other studios contemplating the installation of sound-recording
equipment.
It is evident that it will take many months before France will be
able to produce even satisfactory dialogue films beyond the Gaumont,
Tobis, and Pathé-Natan studios (Joinville and Paris). Therefore, the
majority of the sound versions of French feature films will undoubtedly
have to be produced in Germany and England in order to meet
exhibitor demand during 1930. It should be borne in mind that but
four “talkies” were turned out by French companies during 1929,
and three of these were produced outside of France.
EXHIBITION OF SOUND FILMS
Many different types of reproduction apparatus are said to be

available in France; 17 distinct types are announced as on the market
exclusive of American makes. It is quite probable that this number
includes several on which prompt delivery of orders can not be made.
The installation of reproducing equipment in French cinemas
during 1929 was rather slow, partly because of the scarcity of sound
films, already mentioned, and partly because of a ...Y tightness
of money and the great predominance of small houses that have been
unable to shoulder the expenses of available reproducing equipment.
It is this predominance that causes the general feeling among reliable
sources that the French film situation will continue unsettled during
1930, but it is felt generally that the larger wired theaters will enjoy
a successful year.
As of December 31, 1929, 166 theaters were wired for the reproduc
tion of sound films. American equipment is used in 92 of them,
Ideal Sonore, Gaumont, in 10, Tobis-Klangfilm in 1, Melovox in 18,
and Sonovision (Gerardot) in 45. In addition, it is understood that
11 American reproducers are installed in studios, exchanges, etc.
These figures do not take into account the small theaters which
have been equipped with so-called “bootleg” installations, since
111834—30—3
16
they are really noncompetitve with American equipment and will

very probably be scrapped if and when the houses involved can afford
adequate equipment.
CINEMA CONSTRUCTION
During 1929 new cinema construction in France lagged consider

ably as compared with former years. It is estimated that 20 new
houses made their appearance, adding nearly 20,000 seats to the
country's capacity. The folloiwing list shows their names, location,
and seating capacity:
Seating capacity
Cinema du Grand Hotel, Ste. Marie Aux Mines, Strasbourg------------ 600
Cinema du Palace, Bettombourg, Strasbourg - - - - - - - - - - - - - - - - - - - - - - - - - 400
Moulin Rouge, Paris Plage (Pas de Calais), Lille---------------------- 400
Le Normandy, Paris Plage (Pas de Calais), Lille- - - - - - - - - ------------- 500
Le Familia, Rousier (Pas de Calais), Lille---------------------------- 400
Le Casino, Arras (Pas de Calais), Lille------------------------------- 1,000
De Grenay, Grenay (Pas de Calais), Lille- - - - - - - - - - ----------------- 700
Le Cameo, Estaires (Nord), Lille -- - - - - - - - - - - - - - - - - - - -------------- 800
Le Casino, St. Quentin (Aisne), Lille--------------------------------- 1,000
Le Palace, Charleville (Ardennes), Lille------------------------------ 700
Eden, Rheims (Marne), Lille--------------------------------------- 750
Gallia Palace, Agen, Bordeaux------------. ------------------------- 900
Gallia Palace, La Rochelle, Bordeaux---- - - - - - - - - - - ----------------- 900
Theatre Eldorado, Lyon (Rhone), Lyon ------------------------------ 1, 500
Le Capitole, Algiers----------------------------------------------- 1,800
Le Rialto, Philippeville, Algiers------------------------------------- 1, 200
L'Empire, Algiers------------------------------------------------- 3, 500
Cinema Magnan, Nice, Marseille------ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 600
Ocine, Ste. Marguerite, Marseille- - - - - - - - - - - - - - - - - - - - - --------------- 600
Cinema Marceau, Courbevoie (Seine), Paris - - - - - - - - - - - - - - - - - - - - - - - - - - 1,059
The Eldorada, at Lyon, is a conversion to motion pictures; and the

Capitole, at Algiers, had not been opened at the end of 1929.
LEGISLATION
During the early part of 1929 it became quite apparent that the
French quota restrictions were ineſſicacious, and that the domestic
market was overflooded with censor licenses. In other words,
licenses had little or no market value because of the excess of supply
over demand. The Chambre Syndicale de la Cinematographie
Française, the organized French film trade, therefore recommended
to the governmental Film Control Commission that the quota for the
following film release year, commencing October 1, 1929, be tightened
from the award of seven of these licenses for each domestic feature
film produced to 3 to 1. This obviously would have the effect of
cutting down the number of available licenses to be used against the
importation of foreign features and should increase their worth to
French owners.
These recommendations were made just at the time when American
exchange managers were preparing their plans for the coming release
season, and when they were getting ready to send their salesmen
ºut France and to hold trade shows in Paris of their 1929–30
product.
Fearful of the adoption of the chamber's recommendations and
consequently of being unable to estimate the number of licenses which
would be available on the market for the 1929–30 season, especially
since it was impossible to forecast the quantity of French feature film
-
17
production with the advent of sound, the American exchanges de

cided on March 30, 1929, to make no more contracts for the release
of their films until such time as the recommendations of the chamber
were settled and the situation clarified. This involved the withdrawal
of salesmen and the cancellation of trade shows. In addition, the
American wiring companies decided it was futile to attempt to sell
recording and reproducing equipment with no American sound films
on the market, so they, too, decided to remain out of the market until
some settlement was reached.
After six months of controversy, during which time many diſſerent
plans for the coming release season seemed imminent of adoption, the
governmental control commission on September 19 sanctioned, with
the approval of the Undersecretary of State for Fine Arts, an agree
ment between the president of the Chambre Syndicale and the repre
sentative of the American organized industry to maintain a status
quo of 7 to 1 until ()ctober 1, 1930, or, if necessary, until October 1,
1931, if an accord had not been reached between the two parties
involved by May 1, 1930. During this extended period the ('hambre
Syndicale plans to evolve, with the cooperation of the Government,
some new system of protection to the native industry which does not
savor of the present contingent system.
TRENDS OF THE INDUSTRY
The morale of the French film industry is low on account of the

continuation of burdensome entertainment taxes. Naturally, with
this handicap, it is diſficult to obtain funds to initiate a concerted
movement to keep pace with world sound-ſilm developments. The
vast majority of the French motion-picture theaters have a capacity
of less than 500 seats each, and it is a serious question whether most
of them will ever be in position to reproduce sound films. On the
other hand, just where they will find, after next year, sufficient
silent films to fill their play dates profitably is also a serious question.
The leading motion-picture theaters, however, are rapidly being
wired with substantial reproducing equipment. Actually, the prog
ress made in 1929 in this direction was not good, as explained previ
ously, but already there are indications that the country's film
leaders are generally “sold * on sound films.
During the latter part of 1929 the French industry came closest to
an alleviation of the entertainment taxes. This is an indication that
the forces favorable to this movement are getting stronger, and that
the Government gradually is seeing the situation from the view
point of the exhibitor. Trade magazines are continuing their ener
getic efforts for a general reduction of taxes.
During 1929 there was a general tendency toward much-needed
consolidation of leading companies. The potent Cineromans produc
tion company of Jean Sapone, heretofore the recognized leader of the
French industry, was absorbed by the new Pathé-Natan concern,
which will confine its production activities to the Cineromans studios
at Joinville and the Natan studio on the rue Francoeur, Paris. In
addition, this company has developed the strongest cinema chain in
France by securing control over the cinemas of the (). P. C. L.
circuit, the Omnia theaters, and the Marivaux first-run houses on
the Paris boulevards. The Pathé-Natan company now controls
some 60 houses. The second largest cinema chain in France is the
18
Aubert-Franco film group. This concern is composed of about 40

houses that include the Aubert chain, the Franco film chain, and the
Gaumont houses. A smaller chain is a group of nine motion-picture
theaters throughout France controlled by an American company.
There are several small chains in France, but these do not include
more than eight or nine cinemas at the most. In the aggregate,
however, they will play a prominent part in film distribution if and
when their houses become wired for sound films. Obviously, the
purpose of these cinema chains is exhibitor-buying power.
As time passes, it is expected that there will develop many joint
production companies for the turning out of dialogue films in different
languages. Already signs point to the formation of Franco-German
companies to supply the French and German markets with different
versions of the same film, and it is generally accepted that this type of
production will soon involve Spanish versions to supply the very
wide market for Spanish dialogue films. Italian versions also offer
Some possibilities to the French producers, it is claimed.
With such an unsettled state of affairs, it is difficult to forecast
accurately 1930 results. As previously stated, substantial progress
should be made in the wiring of theaters, and those houses wired with
adequate equipment should enjoy unprecedented success. Available
silent films will command considerably higher rentals than heretofore,
owing to the probable small supply of this type of film and the great
number of unwired houses requiring it. On the other hand, unwired
cinema owners face a situation that should induce them to wire their
theaters or to withdraw from the trade.
GERMANY
By Douglas Miller, Assistant Commercial Attaché, Berlin, and George R. Canty, American Trade
Commissioner, Paris
The delay in settling the patent controversy between German and

American electrical concerns is having a stagnating effect upon film
conditions in Germany. Obviously, the German industry is falling
far behind world progress in sound-film developments, and, as a
consequence, silent and sound film exhibitor demand are so dispro
portionate, that market conditions are in a state of flux.
German first and second run cinemas are but slowly being wired
with German reproduction equipment, the patent controversy pre
cluding sales of American equipment. On the other hand, unwired
houses are in so great a majority in Germany that a supply of quality
silent films would seem to be necessary for the coming year if profitable
demand is to be met. This situation would seem to affect the first
and second run houses more than the others, principally because of the
lack of sound films and because provincial houses are now receiving
films which were arranged for during the past two years, thus making
their bookings secure for some little time to come.
German wired theaters are finding it difficult to secure sound films.
With one exception the American companies are not releasing their
sound product, domestic sound product is slow in making its appear
ance, and other foreign sound films are hardly yet marketable.
The German market is thus restricted to silent features. However,
there is a distinct dearth of quality silent films. The Americans have
very few of these available, while the German and other product
seems to be inferior and are not much in demand.
19
The German situation continues peculiar. Many American

successful silent films, a talkie made in New York in the German
tongue and featuring recognized German actors, a doubled version in
German of an American all-talkie, and several costly domestic pro
ductions, have proved dismal failures, while on the other hand, certain
cheap domestically made silent features have attained exceedingly
great financial returns.
The consensus among the American film leaders in Germany is
that the silent film will have no profitable future once the patent
troubles are settled and that its demand now is merely due to the
inability of exhibitors to make satisfactory headway in the installation
of reproduction sets, together with the exclusion of American features
recorded with American processes. The gradual technical improve
ment shown in the few German-made films so far exhibited, using
Tobis Klangfilm equipment, is a sign that the future German sound
film output will stand competition from foreign sources, at least in its
own and neighboring markets. The American problem, therefore,
will be to furnish a superior product, which should be solved in part by
the successful use of color in films.
THEATER CONSTRUCTION
There were 123 motion-picture theaters (exclusive of reconstruc

tions or renovations) with approximately 80,000 seats built in Ger
many during 1929, as compared with 157 theaters with 105,000 seats
in the previous year. This slackening of cinema construction is due
to a glut of small-sized cinemas holding favorable sites in many of the
larger German cities. Of these 123 new theaters, 6 have a seating
capacity of 2,000 or more, these being the Lichtburg and Stella
Palast in Berlin, the Emelka Palast in Dortmund, the Thalia in
Elberfeld, the Ufa Palast in Hamburg, and the Capitol in Cologne.
Five have a seating capacity of 1,500 or more; the Eisenhof Licht
spiele in Aachen, the Luxor Palast in Chemnitz, the Schauburg in
Gelsenkirchon-Buer, the Schauburg in Hamburg, and the Ufa Palast
in Stettin. In addition, 27 have a seating capacity of between 1,000
and 1,500, 6 between 750 and 1,000, and the rest under 750.
SOU’ND-FILM EXHIBITION
According to a German trade publication, only 223 cinemas in

Germany had been wired at the end of 1929 for the reproduction of
sound films. This represents but 4 per cent of the cinemas in the
country and only 10.5 per cent of the number of daily operating
houses.
Quite naturally, the number and proportion of sound-film cinemas
vary in the different German districts. For example, eastern Ger
many possesses the largest number of wired cinemas, with 58, while
northern Germany boasts of the highest proportion of such houses,
with 13 per cent. In central Germany, which has a total of 453
cimenas, the ratio of wired houses is lower than in any other part of
the country. This is probably due to the fact that most of the
theaters there are small ones which can not afford to gamble on the
purchase and amortization of the sound apparatus now on the
market. As the size and seating capacity of a cinema is an impor
tant factor in the purchase of this expensive installation, it is interest
ing to note that of the 714 theaters in Germany seating less than 300,
20
only 9, or 1.2 per cent, are wired. Of the 678 with 300 to 500 seats,
32, or 4.7 per cent, are wired; of the 383 theaters seating from 500 to
750, 48, or 12.4 per cent, are wired; of the 199 theaters with seating
capacity of 750 to 1,000, 60, or 31.3 per cent, are wired; while of the
132 theaters with seating capacity above 1,000, 74, or 56 per cent, are
wired. These figures include only the houses operating daily, as
those operating irregularly can not, in general, be considered as pros
pects for sound equipment.
The following table shows, by districts, the wired German theaters.
(; ERMAN THEATERS WIRED FOR Soux D FILMS
Cinomas Wired for

--- I)aily sound
stri,.
L)1strict
Total
cinemas "lº-
... t in ºr
- -
Number Per cont
Eastern Germany-----------...... --- ---- 1. 105 j75 58 | 10.0

Central Gerin any - . ---------. - . -- 1, 460 453 44 9.8
Northern (i.erimany - - - - - -- - - - -- (558 277 36 13.0
Southern (ieriitany----. --- 1, 14).5 413 41 10.0
Western Gerinally-------------. . . . . . . . . ---- - - - - - - 849 388 44 11.3
t 0. 5
Total--------------------------------------- -------- 5, 267 2, 106 223 1
The group comprising theaters with less than 300 seats each has the
largest number of cinemas and smallest proportion of wired houses
(1.2 per cent), principally the original and now rapidly becoming
inadequate Tobis installations—while the group comprising theaters
with more than 1,000 seats each has the smallest total number of
cinemas and the largest ratio of wired houses (56 per cent). The
smaller houses, unable to support the expenditure for an adequate
reproduction system, generally purchase an inferior type because of
the price factor, whereas the larger ones, first and second run houses
especially, will gradually become wired with better equipment.
Of the total number of 3,136 German cities having cinemas, only
93, or about 3 per cent, possessed wired houses at the close of 1929.
Obviously, the best prospects for an increase in the sound-film
theater net are in the larger cities. Of the cities with a population
of 100,000 or more, 95 per cent have wired cinemas. These 47 cities
have 1,234 daily operating houses, of which 16S were wired at the
close of 1929. Of the cities with 50,000 to 100,000 population, 50 per
cent have theaters equipped for sound films, while only 1 per cent of
these less than 10,000 have such houses.
The ratio of wired houses to the total number of daily operatin
cinemas also decreases according to the seating capacity. Of the tota
number of wired houses throughout Germany, 16S, or 75 per cent, are
in the group of 47 cities with a population of 100,000 or more.
On the other hand, of the total number of daily operating theaters
(1,234) in these 47 cities, only 13.6 per cent are wired. In this first
category of cities, the largest number of wired houses is in the eastern
part of Germany, where 51 of the total of 16S wired, or 30 per cent, are
located. Western Germany, with 17 large cities and 198 cinemas, has
34 wired houses. Southern Germany, with 12 large cities and 228
cinemas, has only 27 wired, while northern Germany, with 6 of the
larger cities and 156 cinemas, has about the same number wired.
21
Northern Germany has a greater number of cinemas with over 1,000

seats more than the southern part.
Eastern Germany maintains its leadership in sound-equipped theater
development chiefly because it includes Berlin and four other large
cities. Of the total of 488 cinemas in the district, 382, or 78 per cent,
are in Berlin, while of the total of 51 sound-equipped houses in eastern
Germany, 42, or 82 per cent, are in Berlin. Of the 2,106 daily operat
ing houses in Germany, Berlin has 382, or 18 per cent, and of the 223
wired houses throughout the country, Berlin has 42, or 18 per cent.
FILM PRODUCTION
There were 192 films produced in Germany in 1929 by 92 separate

production units. Uſa, with 13, produced the largest number of
films; Aco followed with 8; and 3 companies—IIomſilm, Aafa, and the
German producing branch of an American company—share third
place with 7 each. Werofilm, Hegewald, Emelka, and Albo show 5
each, and Terra produced 4. Thirteen companies produced 3 films
each, 18 companies 2 each, and 48 companies 1 each.
Only four sound films and four with synchronization were produced.
Of these Uſa produced one in each category; F. P. S., Froelich, and
Aaſa each produced one sound film and Greenbaum, Terra, and Eich
berg each produced a film with synchronized musical effects.
There were 130 German films with a total length of 313,285 meters
produced in the first nine months of 1929, and 90 sound pictures
with a total length of 23,353 meters, or less than one reel average
length. Three short silent films with a length of 379 meters were
produced in the entire year, and 728 educational films with a total
length of 412,803 meters; most of the latter were industrial or adver
tising films of various types. Of the sound films only a comparatively
small number, probably not more than 10 or 15, were dialogue
films; and hardly any of them could be called standard talking
pictures.
With the beginning of 193i) the Ufa brought upon the market
five sound features with German dialogue and English and other
foreign versions, which are of a much more ambitious nature and
correspond roughly to the sound features produced by the American
companies.
The average cost of the silent features was very low and could
be estimated at not more than 120,000 marks. The great majority
of the sound films were also made cheaply and would probably
not average more than this figure. However, the Uſa sound features
previously referred to are reported to have been made at a total cost
of $2,000,000, or an average of $400,000 per picture, the most ex
pensive one being “The Blue Angel,” which is reported to have cost
$700,000.
As stated above, the production of sound shorts has not yet begun
in Germany. Only three silent shorts were made last year, and
sound shorts aside from educational films will also be unimportant
in German production. The German film industry has never had
much success with comedies or animated cartoons.
Only two German studios are now equipped for the production of
sound features, the Ufa studios at Neubabelsberg and Tempelhof.
It is true that attempts have been made to produce sound pictures
elsewhere, notably the efforts of the Tobis and some shorts pro
22
duced by the Klangfilm in their laboratories for experimental pur

poses. At the present time, however, no other first-class studio
exists in Germany outside of the Ufa. The Neubabelsberg studio is
the larger and better equipped. It consists of a large building
divided into four units with the machinery and control apparatus
regulated from the center. These studios have all been constructed
entirely for sound-film purposes. In addition, four other studios in
Neubabelsberg have been converted to sound production, but they
are not so satisfactory. The Tempelhof sound-film studios are
smaller and much less important.
DISTRIBUTION
IDuring 1929, 426 feature films were censored in Germany, as

compared with 520 during 1928, 521 during 1927, and 515 during 1926.
Of those censored during 1929, 192, or 45.1 per cent, represented
domestic production, as compared with 221, or 42.5 per cent, during
1928 and 241, or 46.3 per cent, during 1927. American films censored
during this period totaled 142, or 33.3 per cent, as against 205, or 39.4
per cent, during 1928, and 192, or 36.8 per cent, during 1927. Other
foreign films totaled 92, or 21.6 per cent, as compared with 94, or
18 per cent, during 1928 and 88, or about 17 per cent, during 1927.
Thus the German share of the total market supply for 1929 increased
by 2.5 per cent, the American share decreased by 6.1 per cent, and
the other foreign share increased 3.6 per cent over 1928 figures.
FEATURE MOTION-PICTURE FILMS CENsor ED IN GERMANY
Country of origin 1924) 1928 1927 1926 Country of origin 1929 1928 1927 1926
- - - - - - - - ----- -- | - — — —- - --— — —
Unit (“l States 142 20:5 192 229 2 5 6 | 8

("zechoslº #! ( ! | 12 7 3| . 5 5
England 17 15 2 2 Hunga 2 2 1 2
France 16 21 27 22 Estonia.-----------------------. ! ------ ------
Austria-- - 1ſ; 20 15 22 Brazil-------------------------------------. 1
Russia----- - 10 10 | 1.4 8 Germany----------------. 192 : 221 241 202 |
Japan.----- --- * ---- - - - - - - - ------ - : -
I)enmark---------------- 3 4 | Tö. 7 Total.-------------- 125 520 521 515

—--"
This table reflects a gradual decline in the American supply which

is a result of the German film-control decree, yet slightly more than
78 per cent of the market supply in 1929 was furnished between
domestic and American production. Czechoslovak films seem to be
gaining in strength in Germany, but these are seldom shown in first
run houses and are imported more or less on exchange agreements
between the professional trades of the two countries, much similar
to the manner by which Austrian features get showings in Germany.
British films are slightly on the ascendancy in Germany because of
German-British joint-production efforts of the past few years. The
French film showed a slight decline as compared with previous years.
The Russian film has a small but enthusiastic appeal in certain parts
of Germany.
The total of German-made features decreased 19, or 13.1 per cent,
under the domestic production of 1928. The American total of 142
features reflected a decrease of 63 films, or 30.7 per cent, under 1928
figures. Other foreign films more or less held their own with the
previous year.
23
The following table shows the total number of features censored

during the year by months as divided among German-made, American
made, and other foreign, together with the German monthly per
centages.
FEATURE MoTION PICTUREs CENSORED IN GERMANY DURING 1929
P - ſ
Month German American Other Total ii Percent

German
| |
8 11
| 32 . 41
14| 7 3 24 , 58
12 13 8 33 . 37
39 28 22 89 | 45
12 | 6 3 21 57
9 16 8 33 27
9 | 6 11 26 35
|
Total, second quarter-- 30 28 22 80 38
Total, first half-------------------------------- - 69 | 56 44 160 41

July------------------------------------------------- TITT26 -- 6 F– 46 30
August----------- - - - - -- 24 17 S i 49 49
September----------------------------------------- : 28 12 11 51 55
Total, third quarter--------------------------- 66 i 55 25 146 45
October 14 39 41
November-- 5 33 (53
December---- 4 39 70
Total, fourth quarter 23 111 51

Total, second half----------------------------- - • St 48 257 48
Grand total.----------------------------------- - 92 426 i 45
It is interesting to note that the German feature supply for the

first six months of the year was 54 films less than during the second
half. This may be explained by the fact that, during the first half of
the year, producers were hesitant in view of the indefinite demand for
silent features, and by their inability to produce sound features. At
the end of the half year, however, it became apparent that the German
American patent litigation was hindering sound-film developments,
and producers, consequently were forced to renew their previous silent
film activities, a situation which should continue until more German
cinemas are wired.
So far as actual distribution is concerned, the number of films
distributed is somewhat higher than the number of films censored,
since it represents certain carry-overs from films censored the previous
year. The total number is 439 as against 426 films censored in 1929;
237 films were of foreign origin and 202 of German make. This total
compares with 514 films distributed in Germany in 1928, of which 217
were German and 297 foreign.
No less than 79 companies distributed pictures in the German mar
ket in 1929. Of those, 6 distributors handled 20 or more features
each, 3 from 15 to 20 features, 5 from 10 to 15 each, S from 5 to 10
each, 3 handled 4 features each, 9 handled 3 features each, 13 handled
2 features each, and 32 one feature each.
111834—30— —-4
24
GENERAL SITUATION
The general film situation in Germany was discouraging during

1929. The number of films produced was less than the preceding year.
Imports also fell off, and exports of German films showed a very bad
slackening. The total box-office receipts of film theaters in Germany
were decidedly less. The main reason for this state of affairs is the
introduction of the talking pictures.
With the market practically barred to American talking pictures
by the patent litigation already discussed, there was little incentive
for German theater owners to install reproducing apparatus, because
German talkies have expanded slowly and only at the beginning of
1930 is there evidence that talking pictures will be produced in the
German language which will be able to fill German theaters and do a
profitable business. Accordingly, the year was practically lost so far
as the German film industry is concerned. While the local apparatus
companies, Klangfilm and Tobis, have been making some progress
in the manufacture and sale of their equipment, their progress is slow
because they can not sell many machines to German exhibitors until
it becomes evident that there will be a steady supply of good German
talkies available.
Trade opinion in Germany has been somewhat adverse to the sound
film. One reason for this is that the market has been barred to most
of the American productions, and judgment of the trade in Germany
is based upon those few pictures which they have seen and which are
long out of date in America.
Certainly only a small number of English-dialogue pictures can be
shown in Germany profitably. When the novelty wears off, only
German dialogues will be financially possible. It is highly doubtful
whether German versions of the English-dialogue films made in the
United States will be successful, as the public is quick to detect any
flaws in the pronunciation or speech of the actors.
It seems doubtful also that the Germans will be able to export
German-dialogue films very far outside their own boundaries, even to
small neighboring countries where German is well understood. Local
political feeling may bar the use of the German language in such
countries. Under these circumstances, it will be seen that the export
prospects for German-dialogue films are not too bright, although if
they are made on a modest scale and do not cost over $500,000, they
can possibly recover their cost under present conditions and show a
little profit.
The Klangfilm syndicate is going ahead with wiring German
theaters in the coming year. The Ufa theaters are all being wired
with this system, and considerable progress will be made in all the
other larger cinemas, which will not be able to obtain silent features
simply because they are not being made, although many of them
would prefer to keep on with the silent films.
The small country theaters will probably be extensively wired with
cheap disk systems; for example, the Kinoton, which is claimed to
sell for around $1,500. Whether the German film audiences will be
satisfied with the reproduction on equipment of this character remains
to be seen.
Production plans for 1930 call for a maximum of between 60 and
80 sound features, of which 20 or 30 will be made by the Ufa, according
to present plans, and the others divided among such companies as
25
Emelka, Terra, and the smaller producers, with a number financed

by foreign companies. One American firm is now going ahead with
plans to produce some 6 to 12 talking features in Germany next season.
There is no likelihood that American apparatus will be allowed to
enter Germany in the near future.
FILM-IMPORT REGULATIONS 1
On February 1, 1929, the German Government announced that the

present import regulations on motion-picture films would be prolonged
for one year—that is, up to June 30, 1931. This allows 210 foreign
films to come in, of which import permits for 160 are given to German
film renters in proportion to the number of German films they released
during 1928 and 1929. The remaining 50 import permits are dis
tributed among companies which have exported German films in the
last two years.
The film commissioner, in issuing these regulations, made the reser
vation that special regulations might be issued at any time regarding
the importation of talking pictures. At the request of the office of
the American commercial attaché a promise was given by the film
commissioner that up to June 30, 1931, sound features would be
treated just the same as silent features in the handling of import
permits, but the reservation still applies on sound shorts, and it is
possible that special regulations may be made regarding their impor
tation. These regulations will not come for several months, however.
ITALY
By Mowatt M. Mitchell, American Commercial Attaché, Rome
One of the handicaps on the Italian film trade is the severity of the
censor board in dealing with practically every class of film. The
general veto which extends to all talking films in any language other
than Italian and which extended at one time also even to song in
foreign-language films has, to some extent, discouraged theater owners
from installing apparatus for the projection of such films.
Films dealing with modern Russian life, no matter where produced,
which tend to extol communistic theories are absolutely taboo, and
in the case of certain Russian films which eventually were projected,
they were so cut as not only to have eliminated all objectionable mat
ter but also to make even the plot entirely garbled. This ruling has
recently been somewhat modified.
An effort is being made to get around the regulation proscribing
talking films in a foreign language by superimposing Italian on certain
films, but opposition is being raised even to that, it being claimed that
the Italian language is made riduculous when evidently uttered by
a foreigner masking as an Italian. However, certain of the more
tenacious importers are arranging for this superimposing of Italian
on such films and, in the case of a rather unusual British film, hope
to prevail upon the censor board to pass that particular picture.
It would appear that during 1929 only one new cinema was erected
in Italy. This particular theater is situated at Milan, has a seating
capacity of 2,500, and is called the Odeon. No information is available
regarding reconstructed cinemas during the year.
1 The text of the filin-import decree is given in the appendix of this bulletin.
26
From reliable information it appears that 51 theaters have been

equipped with sound apparatus, although their location and seating
capacity are not known. American apparatus is installed in 25 of
them, Melovox (French) in 18, Gaumont (French) in 6, and Pio
Pion (Italian) in 2. The Italian apparatus sells at about 60,000 lire
($3,150).
With the present lack of organization and the general unpopularity
of Italian films, it is not surprising that production should be on an
exceedingly small scale. In fact, during 1929 only four films were
produced in Italy, all silent. The average cost of these films was
about $25,000. Augustus Films produced 1, A. D. I. A. (Association
Direttore Italiani Associati) 1, and Supremefilm 2.
The Cines studio of Rome is the only studio equipped for the pro
duction of modern films.
During the year 806 films were presented to the censor board.
There were 244 American feature films, of which 47 were with sound;
and 207 foreign features, all silent. Of the news reels, comics, etc., not
over 500 meters, 157 were American, of which 103 were with sound;
and 98 were foreign, all silent; of those from 500 to 1,000 meters, 80
were American, of which 10 were with sound, and 20 were foreign, of
which 1 was with sound. In no case was a silent version presented
with the sound production.
American films dominate the Italian trade; in some cases American
films run for two or three weeks, which is not true of foreign films.
Beyond the diſticulties touched upon, caused by the zeal of the censor
board, no regulations appear to be proposed which will injure or
affect American films in Italy.
It will probably be some time before most of even the larger Italian
cinemas are cquipped with sound equipment. The general dislike of
the public for dialogue or song films and their general continued
preference for the orchestra and its music keep the installation of such
sound apparatus from being an imperative necessity. Before the
taste of Italian audiences changes, it is thought that better and less
expensive machines will be put on the market.
The introduction of sound apparatus in Italy naturally created a
certain stir, mingled with curiosity. It is now some time since the
sound film was first presented to an Italian audience. While it was a
great attraction at the beginning, it would not be true to say unre
servedly that sound films are liked or appreciated by Italians. Ameri
can engineers and others who have installed sound apparatus are
perhaps too inclined to the statement that Italian theater owners do
not know how to present the new pictures. There may be some truth
in this, but the general criticism, on the part of Italians as a whole, is
that sound films are unnatural, the voice reproduction poor, and the
musical effects unsuited to and not to the taste of Italians.
BELGIUM
By Lucian Putnam, Secretary to American Commercial Attaché, Brussels
During 1929, 10 new cinemas were constructed in Belgium, thus

increasing the number of existing seats by about 7,000, and 2 were
improved, adding about 1,000 seats. It is announced that the
Olympia Theater of Brussels will be transformed into a picture house
during the course of 1930. A rumor is also spreading that offers have
-
27
been made by an important film-producing company, to buy the

Alhambra Theater, also of Brussels, which is the largest theater in the
city.
During 1929 the following motion-picture houses were equipped
with sound apparatus:
Seats
Coliseum (Brussels - - - - - - - - - - - - - - - - - . . . - - - - - - - - - - - - - 1, 200
Cameo (Brussels) - - - - - - - - - - - - - - - - - - - - ---- - -- --- - 800
Trianon (Brussels) - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 45()
Victoria (Brussels - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - 7()()
Monnaie (Brussels -- - - - - - - - - - - - - - - - - - - - - - - -. -- - - - - - 8()()
Agora (Brussels) ----------------------------...-- ---- 2,000
Scala (Brussels) --- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1, 000
Eldorado (Charleroi - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1, 100
Rialto (Ostend) ------- --------------. --------- - - - - - - 1,000
Coliseum (Liege ------------ ----------------------- 1, 100
Palace (Liege - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 2,000
The sound equipment in these theaters is of American manufacture.
Five films were made in Belgium during 1929; only one was a
sound film. The total cost of the films produced is estimated to be
around 2,000,000 francs. The four silent films produced are mostly on
patriotic subjects.
The principal producer in Belgium is Lux Films (G. Schoukens),
whose studio is located in the Boulevard de Nieuport, Brussels.
The films produced are of no importance on the world market and
are of local interest only. However, the sound film produced, called
La Famille Klepkens, may be projected in France. This film is the
first sound film produced in Belgium and was shown for the first
time at the Coliseum on January 17, 1930, in the presence of members
of the royal family. The principal item of interest is the language
spoken by the actors, a mixture of so-called Belgian-French and
Flemish, which limits the market for the picture to Belgium and
certain parts of France. The picture was taken partly in Belgium
and partly in Paris, and the sound version was made in a Paris studio.
This film will have three versions—a silent one, one in French, and
one in Flemish.
There was no production of sound short subjects in Belgium during
1929.
There are no Belgium studios equipped for sound film production.
During 1929 approximately 700 new films were censored for release
in Belgium; 70 per cent of them were American, 15 per cent German,
10 per cent French, and 5 per cent Belgian.
During 1929, 17 sound films were projected in Belgium. Of these
16 were American films, the other one being “Les Trois Masques,”
a French film produced by Pathé-Natan. The American films also
appeared in silent versions.
GENERAL, TRENDS
The motion-picture business in Belgium was satisfactory during

1929, although the people operating cinemas complained bitterly
about the taxes levied. The prestige of American production was
well maintained throughout the year, particularly for the sound film,
which was the outstanding feature of the market.
Up to the present time, sound films have met with great success in
Belgium. However, many Belgians do not understand English, and
sound versions in English may be less popular when the first curiosity
28
craze is finished. The American distributors very much fear the

competition of French sound films in 1930. It is reported that 18
French films are in preparation and will undoubtedly be projected in
Belgium. The American distributors also fear that if American firms
do not produce French sound films, much ground will be lost on the
Belgian market. They think that 1930 will not be as favorable
for silent films as 1929, as the demand for sound films is steadily
increasing. However, in several centers of the Flemish part of the
country the market for silent films will not suffer greatly, as Flemish
sound films are not likely to be produced, and neither French nor
English can be understood by the people.
It is estimated that during 1930, 50 more cinemas will be equipped
for the projection of sound films.
The trend toward equipping cinemas in the Provinces with sound
film apparatus is becoming marked. Charleroi and Ostend each have
one theater now equipped for sound films, Liege two, and plans are
under way whereby Antwerp will have several in the near future.
However, any great development of sound-film projection appears to
be hampered by the high price of American equipment.
There are no indications of studios being fitted with sound equip
ment in the near future.
There is no legislation inimical to the interests of American films
in view. New legislation, principally for reduction of taxes paid by
the theaters, may be expected in 1930, since such reductions have
been proposed in the general tax program submitted at the end of 1929.
The film distributors are starting a campaign against the censoring
of sound films on the grounds that children of 14 years of age can go
to any legitimate theater where no censorship exists as long as the
plays are not essentially abjectionable on moral grounds. They also
state that because of the fact that certain picture houses project their
films with disks obtained from other sources, the distributors can not
undertake any responsibility if such disks are not irreproachable.
The distributors claim they will start a press campaign if they do not
receive favorable treatment in this connection from the censor
organization.
THE NETHERLANDS
By Paul S. Guinn, Acting Commercial Attaché, The Hague
The outstanding development in the Netherland motion-picture

situation in 1929 was the advent of the sound film. Sound apparatus
was first installed in a theater in Amsterdam in May, 1929, and a
tabulation made early in December showed that 57 theaters in most of
the principal cities and towns are now so equipped, while it is antici
pated that installations in provincial theaters beyond first-run houses
will, in the near future, considerably increase this total.
Four new theaters, with a total capacity of 2,350 seats, were con
structed in 1929. These are Watergraafsmeer, Amsterdam, 300;
Over 't IJ, Amsterdam, 400; Van Oss, Nijmegen, 600; and Fei
jenoord, Rotterdam, 1,050. One cinema of 400 seats (Heerengracht, |
The Hague) has been converted from a legitimate theater, while |
reconstructed theaters account for an additional 400 seats, so that

the total seating capacity has been advanced by 3,150 seats. These
reconstructed theaters are the Roxy, Amsterdam, of 550 seats; the
De Kroon, Zwolle, seating capacity of which was increased from 300
to 550; the Palace, Haarlem, seating capacity of which was increased
i
-
29
from 600 to 750; the Veendam of 300 seats; and the Helmond and
Assen, also of 300 seats each. These two latter were damaged by fire
and were rebuilt.
Sound apparatus of domestic production dominates the market,
accounting for 45 out of the total of 57 installations. Of these 45, 30
are Loetafoon, 10 Nillson, 3 Meulkens, 1 Kesslerphone, and 1 Asta
National. In addition, there are 5 of American manufacture, 5
Tobis (German), 1 Naturetone, and 1 Rommofone, the two latter being
English.
The Netherlands does not have any well-developed motion-picture
production industry, only two feature films having been produced
during the year by local enterprises, dealing primarily with the
Netherland East Indies. The first of these, known as “Maha Cyclus,”
was put oilt by the Polygon company at Haarlem, and the other,
“With Willy Mullens Through the Netherland East Indies,” was
made by Willy Mullens, of The Hague. They were both silent films.
Little or no progress has as yet been made in the production of sound
short subjects, although it is rumored that the Willy Mullens concern
is planning a sound studio.
The number of feature films censored in the country during 1929
is placed at around 700, out of which about 600 were American.
About 80 feature films with sound were censored, and a silent version
accompanied most of these. Nearly all of the sound films were
produced in the United States. According to the Central Film
Censorship Committee of the Netherland Government 3,003 films,
totaling 2,255,350 meters in length, were censored during 1929.
The division of these by country of origin is not given.
As a whole, the year was favorable for the film trade, although the
summer season was particularly bad. Trade opinion considers that
the sound films already shown have been favorably accepted by the
public, more especially the singing, dancing, and talking type, and
are generally well understood with the aid of superimposed titles.
While the sound film is still somewhat of a novelty, the trade is gener
ally confident of its future. Higher prices are obtained for these
films, and it is anticipated that they will account for considerable
financial returns in the future. Practically all houses in the country
want sound equipment, and it is believed that even the provincial
theaters will soon be wired.
As far as can be ascertained, there are no particular production
plans for 1930, although, as indicated, one concern is reported to be
contemplating a sound studio.
No legislation inimical to American films was passed during the year.
DENMARK
By Paid H. Pearson, Assistant Trade Commissioner, Copenhagen
The outstanding development in the Danish motion-picture

industry during 1929 was the introduction of the sound film. How
ever, the expectations and hopes linked to this development were
not fulfilled, and despite the advent of this innovation, the year can be
characterized as a rather unsatisfactory one for the Danish industry.
Only meager statistical material covering the entire year is available
as yet, but from the data on hand it can be seen that the earnings
of the Danish motion-picture theaters during 1929 registered a
decrease compared with the earnings during 1928. The income of
30
the Copenhagen cinemas during the first half of 1929 amounted to

3,200,000 crowns ($857,500), while during the corresponding period
of 1928 the receipts totaled 3,700,000 crowns ($991,500), a decline of
about 13.5 per cent. This drop in revenue was caused to some extent
by the fact that several of the largest houses were closed for some
time to permit the installation of sound equipment. These installa
tions have been very expensive, a feature on which the saving occa
sioned by the fact that an orchestra is no longer needed has made
little impression. Furthermore, the trade states that the new films
have not been the cause of any material increase in attendance.
Also, owing to the fact that it has been difficult to book a sufficient
number of sound-film releases, the wired theaters have been forced
to show silent films intermittently and thus at times have been
burdened with the additional expense of orchestras. The result is,
therefore, that while the receipts have registered a decline, the ex
penses of some of the houses have registered an increase. This
circumstance, on top of the burdensome taxes which are exacted,
makes the financial problem a difficult one. As no sudden change is
expected, the outlook for 1930 does not appear bright.
EXHIBITION FACILITIES
There are about 400 motion-picture theaters in Denmark, of which

only about 270 operate daily. The total seating capacity of the
motion-picture houses is estimated at 140,000. In Copenhagen there
are 37 theaters with a total seating capacity in the neighborhood of
30,000. No new houses were opened during 1929, nor were any
reconstructed during the year.
There are 18 theaters equipped with sound apparatus, of which 9
are located in Copenhagen and 9 in the larger provincial towns.
Fifteen of the wired houses are ſitted with apparatus of American
origin, while three of the systems are of Danish origin, the Petersen
& Poulsen equipment. The installations are all adaptable to syn
chronized as well as nonsynchronized films, and thus can be employed
for the creation of sounds in connection with the projection of silent
films. The following list gives the names of the wired houses, their
location, seating capacity, and origin of sound equipment.
DANISII THEATERs WIRED FOR Sound FILMS
S
Name City i.
c
| - : -
Type of equipment
Paladsteatret--------------------------- 1,600 American.

Kinopalaet------ - l 1, 200 Do.
Grand Teatrot 600 I)0.
ColoSSäcum --" 000 i I).o.
Aladdin 884 I)0.
Roxy--- 1,000 Do.
Kinografen- - - - 200 Petersen & Poulsen.
Rialto Teatret------------------------- - 700 American.
T}ct lille teater---------------- - -- 594 Do.
Valby Teater---------------- --- 600 Do.
Kinograſen -------------------- - - 800 I)0.
Paladstontret-- - - § l Do.
I)0.
- 400 Peterson & Poulsen.
Regina Teatret rhus 940 American.
Slotsbiografen- Hillerd-- -- 275 I)o.
Paladsteatret---- ---' Vejle------------------------ 520 | Petersen & Poulsen.
Do--------------------------------- i Aalborg--------------------- 600 American.
31
PRODUCTION
Danish production of silent films during 1929 was small, as was

also true of earlier years, and was confined to two features, both of
which were produced by the A. S. Palladium of Copenhagen. The
production cost of each of these films is estimated at approximately
ſº
Or 1930.
crowns (about $54,000). No extensive production is planned
The Danish sound-film industry at present is not very far advanced,

and production to date has been confined to a few 1-reel subjects
consisting of songs and short talks in which only local artists appear.
The future of this branch of the Danish film industry is not thought
to be particularly promising, as the domestic market is not of suf
ficient size to warrant the expense involved in the production of
feature films, and there is little demand for Danish-dialogue films
outside of Denmark. It is expected that Danish sound-film pro
duction during 1930 will be limited to a single feature and a few
1-reel subjects.
The only Danish film company which possesses a studio equipped
for sound-film production is the A. S. Nordisk Tonefilm, Mosedalsvej,
Copenhagen, which was organized shortly after the Nordisk Film A.
S. discontinued operations in 1928. The new company, which recently
increased its capital to 2,000,000 crowns in order to extend its activ
ities in the field of sound-film production, has rented the vacated
studios of the Nordisk Film A. S. where the Petersen & Poulsen
system of recording has been installed. This system is based on
the disk principle.
DISTRIBUTION
The statistics of the Danish censor's office are compiled for fiscal
years ending March 31. According to the records of that office,
there were 1,656 films, of a total length of 1,654,194 meters, exhibited
during the fiscal year 1928–29. Of the total, 46 were sound films
and, of these, all feature sound films were American-made. There
were 545 feature films shown and 959 sketches. The United States
is far ahead as regards both the number of films supplied and their
total length, and during the fiscal year accounted for almost 58 per
cent of the aggregate number and approximately 68 per cent of the
total meterage. The domestic industry, although it ranks second
in point of the number of films exhibited, with 27 per cent of the
total to its credit, is not of great importance as a supplier, as the
aggregate length of the Danish films exhibited amounted to but
69,079 meters, or only 4 per cent of the total. Germany offers the
most important competition to the United States in the Danish film
trade, and for the reported year its share represented slightly over 6
per cent of the total number and 14 per cent of the total length.
France followed, with a little over 4 per cent of the number and 6
per cent of the length. The table which follows indicates the country
of origin of the films shown in Denmark during the fiscal year 1928–29,
their number, length, and the percentage of each supplied by each
country.
111834—30—5
32
MOTION-PICTURE FILMS CENSORED IN DENMARK IN 1928–29
Per cent
r -
Country of origin -
Number Per
- cent
of total
-
Meters *
| of
-
955 57.7 | 1, 123,625 67.9

452 27.3 69,079 4.2
106 6.4 238,445 14.4
71 4.3 101,535 6.6
27 1.6 57, 115 3.4
16 1.0 41, 515 2.4
14 .8 15,925 .8
10 .. 6 3,945 .2
5 ... 3 3,010 .. 1
Total-------------------------------------------------- 1,656 100.0 | 1,654, 194 100.0
Very little statistical material is available for the period since

April 1, 1929. However, 424 films were distributed between April 1,
and August 31. Of the total, 237 were American, 69 Danish, 67
German, 28 French, 15 English, 4 Swedish, 2 Norwegian, and 2
Russian. During the same five months 27 sound films were shown,
17 of American origin. During the remaining four months of 1929
an additional 73 sound films were exhibited, making a total of 100
sound films shown from April 1 to December 31, 1929.
GENERAL TRENDS
The Danish motion-picture situation in 1929, as already mentioned,

may be characterized as rather depressed. Owing to the high
entertainment tax, amounting to 40 per cent of the gross income,
in addition to a license tax and the usual governmental taxes, such as
income, etc., profits of the theaters have not been as large as might
be desired, and some theater owners are said to be faced with financial
difficulties. American films continue to be preferred by the public,
and the American “talkie” has been the most important feature of
the year. However, local exhibitors state that while the sound
film met with favorable reception when first introduced, attendance
has fallen off, as the curiosity of the public has been satisfied and
their interest has waned. The foreign talking films are handicapped
by the fact that only a small minority of the public understands
English. Although the sound-without-dialogue films have no linguistic
difficulties to overcome, the trade states that there is a noticeable
preference for music furnished by regular theater orchestras as opposed
to the music accompanying a sound film.
The fact that only 18 out of 270 theaters so far have installed sound
equipment indicates that the development of this innovation is rather
slow. A factor contributing to this slowness is the common belief
that the purchase price of the installation is much too high and will
soon decline. Those that have ſitted their theaters with sound equip
ment state that they have not received the monetary benefits which
were expected. Among the reasons advanced for the unfavorable
returns is the fact that it seems to be rather difficult for local motion
picture theaters to book a sufficient number of sound-film releases.
This means that they must show silent films intermittently, which
necessitates engaging an orchestra and thus incurring an expense
which the installation of the sound equipment should have saved them.
33
No legislation inimical to the interests of American films has been

passed, but the American sound apparatus, since their introduction,
have been the object of a good deal of comment. Local press articles
at first devoted their complaints solely to the price question, and
Danish cinema owners and others expressed the belief that the price
involved an unreasonable profit to the American manufacturers.
After the introduction of the Danish machines, additional articles
appeared in which it was claimed that the American sound-film pro
ducers were attempting to keep Danish machines out of the market
by stipulating as a condition that American sound films must be
projected by American machines, and at the present time this ques
tion is the subject of controversy.
NORWAY
By Marquard H. Lund, American Commercial Attaché, Oslo
No new cinemas were constructed in Norway during 1929. The

old Admiral Palads in Oslo, with 900 seats, was reconstructed for
sound-film equipment and the seating capacity increased to 1,400.
It is now called the Eldorado.
Four American sound installations were made during the year, two
of which are in Oslo—one in the Eldorado theater and the other in
the Coloseum, with a seating capacity of 2,200. In addition, the
Verdensteatret in Trondhjem, seating capacity 1,200, and the
Bibliotek theater in Fredrikstad, seating capacity 800, were equipped
with American sound apparatus.
The German Klangfilm equipment has been installed in the Palads
teatret in Oslo; this is a trial installation, subject to approval. It is
not being operated at present, owing to mechanical difficulties. A
German engineer is expected to remedy the trouble. A Bergen
theater has also purchased a Klangfilm installation.
Nordisk Tonfilm, a Danish concern making the Poulsen & Petersen
equipment, has made an installation in the Parkbiograf theater in
Skien. Another is to be made in the Boulevard theater, Oslo, on a
trial basis. The Nordisk Tonfilm equipment is said to be particularly
well suited for theaters of small size. Its approximate cost is 12,500
crowns ($3,600).
The Glomen Komune has installed an apparatus of American make
in its Rode Molle theater.
Three feature films were produced in Norway during 1929–Laila,
Froken Statsadvokat, and Selvigs Norgesfilm. These are silent
films. The cost of Laila is estimated at 290,000 crowns; the cost of
the other two is not known. Laila was made by Lundefilm, and
the other two privately. No short sound subjects were produced
during 1929, but it is expected that a beginning along this line will
be made in 1930. A short sketch was produced in Copenhagen dur
ing December with Norwegian artists, which was scheduled to have
its première in Oslo about January 15, 1930.
Froken Statsadvokat is now playing in Oslo, but has not proven
very popular. Laila had a very big run all over Norway, and is to be
shown in the United States also. Selvigs Norgesfilm is purely a scenic
film, intended partly for publicity purposes in foreign countries.
There are no studios in Norway for either silent or sound film
production.
34
The Statens Filmkontrol censored 825 films during 1929. Of

these, 337 were released for actual showings, 216 of which were
American.
Gross receipts from the 245 Norwegian theaters amounted to about
12,500,000 crowns in 1929. Of these, 103 theaters owned by munic
ipalities showed receipts of 11,237,734 crowns. Control of the
principal theaters, therefore, is now entirely in the hands of the various
communes. Some of the few remaining independent houses—
Colloseum and Kinopalaet in Oslo and the Rosenberg theater in
Trondhjem—were taken over by the respective communes during
the year. Although each commune manages its own theaters,
Kommunernes Film Central, Oslo, is considered as the center of
affairs for all communes and undoubtedly has considerable influence
and is consulted on important decisions.
American film prestige seems to hold up well with the public, as
is indicated by financial returns. The press considers most American
films inferior to European production from an artistic point of view,
owing probably to a difference in taste. Sound films with much
American slang are not suited for the market. On the other hand,
musical comedies with attractive settings and all-talking mystery
plays would make American sound films probably more popular.
The German sound picture Atlantic has been playing to full houses.
The further development of sound films is rather promising, con
sidered from the point of view of the public. Most of the opposition
comes from professional critics, who prefer the silent film, and a
certain political element, which is opposed to commune operation of
the theaters and quotes the sound film installations as an example
of poor business judgment. Norwegian text is shown for the benefit
of those who do not understand English or German. A surprisingly
large number of people are familiar with English and German, how
ever, but have diſficulty in understanding typically American idioms.
For the same reason, American jokes and humor are not always
understood.
Additional theaters will probably be wired for sound film during
1930. The present cost of installation is considered too high, how
ever. A reduction in price should widen the market somewhat.
No production, no expansion in studios, and no adverse legislation
is contemplated for 1930.
SWEDEN
By T. O. Klath, American Commercial Attaché, Stockholm
THEATERS
During 1929, there was a continuation of the trend toward larger

and more modern motion-picture theaters in Sweden. Seven new
houses with a combined seating capacity of about 4,000 were opened
during the year. A few theaters were reconstructed, but the number
of seats added was insignificant.
About 60 theaters had been equipped with sound-film installations
at the end of February, 1930, and others are being added slowly.
Most of the large houses have completed their installations, and the
new equipment is now going into the smaller provincial theaters.
That the sound film has conquered the Swedish market is best in
dicated by the fact that Roda Kvarn, a first-run theater in Stockholm,
announced some months ago by Aktb. Svensk Filmindustri as “the
35
permanent home of the silent film,” will soon have a sound apparatus
installed.
Of these 60 wired theaters, 20 have American equipment, 27
Nordisk equipment of local manufacture, and 11 Klangfilm.
PRODUCTION
A total of seven purely Swedish feature productions were either

planned or started during the year and, in addition, five were to be made
in cooperation with other European producers. Of these, eight are
silent and four have both silent and sound versions. Aktb. Svensk
Filmindustri so far has released only one synchronized film, this being
Sag Det i Toner (Say It with Music). This feature is reported to
have cost about 150,000 crowns ($40,000), and the sound part was
made in Berlin. Six silent feature films were released. The average
cost of the Swedish silent features may be estimated at from 80,000
to 125,000 crowns ($21,500 to $33,500), each, but it is impossible to
obtain definite information as to the investment in films made in
cooperation with other European producers.
Film production in Sweden is dominated by Aktb. Svensk Film
industri, which in 1929 started production or planned about 10 feature
films. In addition, two features are now being made by two indivi
duals, one of them being produced in a Danish studio. Swedish
sound short subjects have not yet appeared, but it is planned to
start production soon.
The only Swedish sound film produced and released so far was
made by the Tobis system. There is but one film studio of impor
tance in Sweden, located at Rasunda, a suburb of Stockholm, and
owned by Svensk Filmindustri. It recently completed the installa
tion of Tobis equipment for making sound pictures.
DISTRIBUTION
According to the trade, approximately 350 feature films were cen

sored for release during 1929, and of this total approximately 75 per
cent were American. Swedish features were next in importance.
The following statistics, compiled by the official censor, cover all
pictures censored during 1929 and indicate to some extent the types
and origin of films: The total number of films (original and copies)
examined during 1929 was 4,781, including 2,665 features, short
subjects, etc., and 2,116 nature pictures, news reels, etc. The total
of 4,781 included 1,974 original copies and 2,807 duplicate copies.
Of the total number, 1,987 were from Sweden, 2,053 were from the
United States, and 741 were from other foreign countries. The
Swedish figure appears so large because it includes a large number of
news reels.
The total length of film examined (including originals and dupli
cates) amounted to 3,862,841 meters, of which 3,294,171 meters
represented features, short subjects, etc., while 568,670 meters repre
sented news reels, nature pictures, etc. Originals examined were
1,224,620 meters in length and copies 2,638,221 meters. Of the total
length of film examined, 633,845 meters originated in Sweden,
2,202,979 in the United States, and 1,026,017 in other foreign coun
tries. Only 76,086 meters of film were altogether banned by the
censor, while about two-thirds of all film censored were forbidden for
children under 16 years of age.
36
During 1929 American producers supplied practically all of the

sound films released in Sweden. Since the beginning of 1930 a few
German sound films appeared, and most of these met with success.
Silent versions accompanied the American pictures in nearly all
cases, exceptions being the revue subjects, operettas, and exclusively
singing pictures. GENERAL TRENDS
The advent of sound films created a great deal of interest on the

part of the Swedish public. At first the theaters showing sound films
were filled with people who came out of curiosity. However, a large
percentage of the public immediately became keenly interested in
sound films, and the attendance at theaters showing this type of
film increased over the previous year. In the larger cities a sur
prisingly large number of people are able to understand sufficient
English to enjoy American dialogue if it is not too idiomatic. Con
siderable criticism is heard regarding American sound films that have
been rescored to any extent. Furthermore, it is claimed that Amer
ican films have entirely too much dialogue and too little action. One
result of the American sound films has been to increase the interest in
the study of foreign languages, particularly English. The introduc
tion of sound pictures also has tended to obviate the seasonal char
acteristic of the market; most theaters in the past have closed for
about three months in the middle of summer.
The American film industry undoubtedly increased its prestige in
Sweden during 1929, although there were many difficulties on account
of the sound feature. Certain local interests have endeavored to
slow up or block the introduction of American sound films but have
met with little or no success so far as the general public is concerned.
On this account, however, many owners of smaller theaters have
delayed the purchase of sound equipment. Some time ago an im
portant daily newspaper in Stockholm arranged a reader referendum
on sound films. The replies received were highly unfavorable to
American sound films. On the other hand, audiences in some thea
ters have been given cards on which to state whether they thought
the particular film shown would have been more enjoyable in a
silent version. The results of these straw votes have been over
whelmingly in favor of sound pictures.
Svensk Filmindustri controls one or more first-run theaters in each .
of the 35 largest towns throughout the country and also is the only
factor of importance in local production. Its operations during 1929
involved the erection of a few additional theaters and the installation
of sound equipment in many of its houses. It is the best customer
in Sweden of American film companies.
OUTLOOK
In general, it may be stated that an increasing number of Swedish

film houses will be equipped with sound apparatus during 1930.
There is some objection to the high prices charged for certain makes
of apparatus, although it is generally admitted that the American
apparatus reproduces sound better than competitive products.
Smaller provincial theaters are purchasing cheaper European-made
equipment.
37
It is believed that Swedish film production during 1930 will be

about the same as in 1929. Plans are discussed for making German
and other foreign-language sound version of a few Swedish feature
films during 1930. It is reported that two American companies plan
to produce sound features in Swedish by using Swedish actors.
Probably about half of the Swedish feature production during 1930
will have both sound and silent versions, while the other half will be
only silent.
There is no legislation proposed that would in any way affect the
interests of American film companies.
During 1930 Sweden should continue to be an important market
for American film companies. Although its population is only a
little more than 6,000,000, the per capita expenditures for motion
picture entertainment is one of the highest in Europe, and for its
size the country maintains an exceptionally large number of theaters.
American producers, however, must use every possible effort to adapt
their sound pictures to local tastes iſ they are to maintain the pre
dominant position they now enjoy in this market.
CZECHOSLOWAKIA
By Dr. Alois Broft, Office of American Commercial Attaché, Prague
During 1929 the number of motion-picture theaters in Czecho

slovakia was increased by 50 with an average capacity of 440, or a
total increase of 22,000 seats. Apart from a few rebuilt theaters in
smaller towns, all of these were new and constructed expressly for
motion-picture performances. In Prague 12 cinemas with a total
seating capacity of 9,820 were completed during the year. These
figures represent a decrease as compared with 1928, when about 150
new theaters were put in operation. This is ascribed to the fact that
the total seating capacity of motion-picture theaters more than covers
present requirements. This is true particularly as regards Prague,
where the number of first-run theaters has been growing at such a
rate and the competition is so keen that the initiated speak of an
imminent crisis which may manifest itself late in the spring or early
in the summer of 1930 by a number of cinemas having to close down.
It is thought by many that only financially strong theater owners
will be able to survive a slack season, with undiminished operating
expenses accompanied by materially lower receipts.
From August 15, 1929, when the first sound film was shown in
Prague, to the end of the year, 14 first-run theaters were equipped with
sound-film reproducing apparatus; 8 of these theaters are located in
Prague. An American make is installed in 8 cinemas, while German
Klangfilm equipment is found in 3 theaters, a Czechoslovak device
called “Belcanto '' in 2 houses, and a Dutch reproducing set,
“Loetaphon,” in 1.
The following table shows the names of theaters equipped for sound
films, their location, seating capacity, and type of sound installation
38
CZECHOSLOVAK MOTION-PICTURE THEATERS WIRED For Sound FILMS IN 1929
Name | Location Seating

capacity Type of equipment
985 || American.
O.
720 Klangſilm.
Do
1,045 American.
Do
900 io.
| Do.
920 | Loetaphon.
Adria--------- - I.iberec (Reichenberg) |
Bolcanto.
--- Pardubico----------------------------- 460 Do.
i
Kapitol--------- --- Brno---------------------------------- 950 American.
Universum--- -------do 780 Klangfilm.
Forum--------------------------- Kosice 700 American.
The following cinemas were being wired for sound films and were
expected to be in operation during January or February, 1930.
Czechoslov AK THEATERS BEING WIRED Fort Soux D FILMs AT END of 1929
Nairie - Location Seating

capacity Tsie of equipment
- - - - - - ----------—— I
Hollywood--------------------- - Prague-------------------------------- - 500 || American.

Skaut - - - --- ---, --- (10.------------------------------- 730 1)0.
Central.------...- -- - Kralove Hradic -...---------------------
- - - - - - - - - - - - - 550 Edibell:
Kaminerlichtspiele - - -, Liberec (Reichenberg) ." 650 Klangfilm.
Olyinpia- - - - - - -...-- ..! Teplice-Sanov - - - - - - - - - -
- - 30 I)0.
Staltkino - Jablonec n. M. (Gablonz 1. d. 1()() I)0.
Elite . . Karlovy Vary (Karlshad) 520 I)0.
Metropo Walnsdorf 700 l)u.
Edison . Iłrno . 430 I)0.
Pop"--------------------------- - ...do ... -- 400 American.
Odeon-...- - - - - - Mlo, avska ()st 1.lva. - -- 450 Klangfilmil.
Allon -. --------------------- Bla' islava . . . -- - - - - - - - - - - - - - - - - - 1, 600 : American.
Re loute . . . . . . . . . .. .. . ... ----. do . - - - - - - - - - - 900 1)0.
U rania - - - - - - lo - - - - *20 l)0.
Since 28 cinemas will have been equipped with reproducing appa

ratus within six months after the introduction of the sound film, it
is believed that the number may be expanded to 50 by the end of 1930.
PRODUCTION
Approximately 25 feature films, including 4 comedies, were actually

produced or in production in Czechoslovakia during 1929. The
average production cost of a domestic film is placed at the rather low
figure of 300,000 Czechoslovak crowns ($9,000), only a small number
of films exceeding 500,000 ('zechoslovak crowns ($15,000). It is
reported that out of the total 1929 production only two films, Sv.
Vaclav (St. Wenceslas; producer, Elekta Journal, Prague) and
Plukovnik Svec (producer, Ocean Film, Prague), which are now
nearing completion, involved a greater expenditure, namely, 4,000,000
Czechoslovak crowns ($120,000) and 1,500,000 Czechoslovak crowns
($45,000), respectively.
To date no Czechoslovak sound film has been produced. Two
dramas of the 1929 production, Galgentoni (producer, Anton Film,
Prague) and Pasak Holek (Bully, producer, A-B Film, Prague), are
being synchronized at Berlin. The silent version of the first Czecho
39
slovak sound and talking film Slovanske Melodie (Slavonic Melodies)

has just been started by Beda Heller, Prague; and sound versions in
Czech, German, and English will be prepared at studios in Berlin and
London.
The 1929 domestic feature film production was chiefly in the
hands of the following firms:
Films
Bratri Deglove, Prague---------------------------------- 4
Elekta Journal, Prague---------------------------------- 4
A-B Film Co., Prague----------------------------------- 2
Star Film, Prague--------------------------------------- 2
Hera Film, Prague-------------------------------------- 2
The balance of the pictures produced during 1929 were the work of
individuals or casual companies and in many instances suſtered from
lack of capital, experience, and equipment.
Joint production with foreign producers was effected in five cases.
Three films were produced in cooperation with companies in Berlin,
one with a film company in Vienna, and one with a company in Paris.
Such cooperation involves, as a rule, the collaboration of several foreign
actors, the use of the facilities of foreign studios, foreign financial
assistance, and distribution abroad by foreign organizations.
No Czechoslovak studio has been equipped for sound-film produc
tion. At the present time there is only one regular studio for silent
pictures in the country, owned by the A–B Film Co., Prague. The
only other studio, which was owned by the firm Karel Lamac in Prague
Kosire, burned down in June, 1929, resulting in further reliance on
studios in Berlin and Vienna.
I)istributio N
According to the preliminary statistics covering motion-picture films

censored by the Czechoslovak authorities during 1929, 274 dramas,
376 comedies (mostly short subjects), 94 educational and cultural
films, and 203 news reels, a total of 947 films with a length of 924,650
meters, were imported into Czechoslovakia from the United States.
This compares very favorably with 1928, when S03 American ſilms
having a total length of 887,130 meters were in ported.
The second most important supplier of motion-picture films to
Czechoslovakia was Germany with 136 dramas, 72 comedies, 213
educational and cultural films, and 130 news reels, a total of 551 films
with a length of 592,122 meters. Then follow, in order of importance,
France with 186 films, Great Britain with 40, Soviet Russia with 35,
Austria with 44 (mostly short cultural films), and other countries with
26.
The total number of films imported into Czechoslovakia and cen
sored during 1929 was 1,829, with a total length of 1,840,164 meters, as
compared with 1,610 films and a total length of 1,666,054 meters in
1928.
40
FILMs CENsor Ed DURING 1929 IN Czechoslov AKIA
|
|
i - - Educational | News and ad
I)ramas Comedies and cultural vertising Total
Country of origin - - - - - - -- | —
Num- Length Num- Length Num- Length Num- Length Num- Length
ber in ~ ber in meters ber . In meters -
ber , in meters;
i
ber | in meters
l |
United States------- 274 544, 620 376 286,782 9.4 36,760 203 ſ 56,488 947 924, 650
Germany - - - --------| 136 || 326, 262 72 126,055 213 110,020 130 34,785 551 597,122
Czechoslovakia- - - - - | 29 70, 405 7 15, 64() 101 60,232, 267 68,960 404 ; 215, 237
France-------------- * 32 88,090 : 6 8,010 52 - 96 23,447 186 i 135,222
(#reat Britain------- 17 40, 24 8 10,065 14 1 185 ' 40 | 54, 585
Soviet Russia - l 2,070 7 3 2, 475 35 57, 540
Austria- - - - (5 8, 800 31 1 420 | 44 25, 510
Denmark - - - - 4 9, 180 4 3,985 ---------------- 8 13, 165
Other countries - 1 79ſ) 7 9, 620 1 240 18 32,370
Total.--------- - 481 467,392 523 249, 407 702 187,000 2, 233 i 2,055, 401
| - l
1 Including 10 films having a total length of 2,800 Ineters of Canadian origin.

2 Mostly Italy and Norway.
As regards the number of sound films imported into Czechoslovakia,

it must be borne in mind that the first sound film was shown on
August 15, 1929, and that the number of theaters wired for sound-film
reproduction increased only gradually to 14 at the end of the year.
The imported sound films were almost exclusively of American origin
and included 16 feature films having a total length of 43,410 meters,
25 news reels having a total length of 8,120 meters, and 33 short
films (songs, music, etc.) having a length of 7,260 meters.
The American sound films censored for release during the latter
half of 1929 totaled 74, having a total length of 58,790 meters. In
addition, 3 German shortsound films (2 films by the Tobis company
and 1 by Ufa) having a total length of 480 meters were shown.
As a rule, sound feature films are imported with silent versions,
so that the distributors can sell them to theaters which are not yet
equipped for sound-film reproduction.
GENERAL Tren IoS
The condition of the Czechoslovak motion-picture market during

1929 was favorable for American pictures, which not only maintained
their prestige, but again gained ground against the German competi
tion, which was rather severe in 1928. During 1929 Germany
exported to Czechoslovakia a smaller number of dramas and comedies
(208 films 452,000 meters in length in 1929 as compared with 224
films 508,000 meters in length in 1928), while the imports of such
films from the United States increased considerably (650 films with a
total length of 832,000 meters in 1929 as against 635 films with a total
length of 713,000 meters in 1928). The competition of other countries
and domestic production were minor factors.
The increased popularity of American films was to some extent due
to the introduction of sound films. The Czechoslovak public received
them with enthusiasm and filled the sound-equipped cinemas in spite
of substantially increased entrance fees. The cinema owners are
thus far satisfied with the financial results, there is very little competi
tion at present, and the novelty attracts large crowds. The exhibitors
point out that actual sound films are in great favor, whereas silent
films with a synchronized version are regarded less favorably, being
-
41
called “movies with phonograph accompaniment,” and attract a

much smaller public.
As stated above, 28 more theaters, including 10 in Prague, will
shortly be equipped for sound films. Of course, most of these are the
large first-run theaters, since the smaller houses can not as yet afford
the expense of installing sound-reproducing apparatus. The further
development will also force the second-rate cinemas to change over to
sound films, owing to the fact that the American production is largely
devoted to sound films and that the present high prices for silent
films are increasing as a result of the shortage beginning to be manifest
on the local market.
Although one American make of sound apparatus is leading the
market and is considered the best, the German Klangfilm apparatus
is second in importance, owing to its low price.
The plans of the Czechoslovak film producers are as yet rather
indefinite, the more so since domestic film companies do not wish to
invest much money in silent pictures under present circumstances. It
is expected that the cooperation between the domestic and foreign
film-producing companies will be extended, particularly with a view of
turning out Czech sound films, since there is no sound-film studio in
Czechoslovakia.
The domestic film producers are handicapped greatly by a lack of
properly equipped studios, there being at present only one regular
studio. Recently an effort was made to create a joint movement for
the purpose of erecting a modern studio which could also serve for
sound-film production. Since private financial means are not ade
quate, a Government subsidy would be sought. To date, the project
is very indefinite and has not proceeded beyond a general discussion.
The Czechoslovak Government does not appear to have plans
inimical to American motion-picture interests, nor is there any
prospect for an early change in the present situation. No action
was taken by the Czechoslovak Government on the film law which
was drafted in 1928 for the purpose of introducing a quota system
on foreign films; the domestic film producers are showing no further
interest, and as the distributors and the theater owners were never
very enthusiastic, it may be assumed that the bill has been abandoned.
CSTONIA
By Edward Hunt, Office of American Commercial Attaché, Tallinn
There are approximately 55 cinemas operating in Estonia, with a

total of about 13,000 seats. There are 14 cinemas at Tallinn, 6 at
Tartu, 5 at Narva, and 3 at l’arnu, the rest being distributed in the
Provinces. During 1929 only two cinemas were constructed, one at
Tartu, and one at Parnu, with approximately 500 seats each. Only
a few minor cinemas were reconstructed during the year, the number
of seats, however, remaining unchanged.
In 1929 only one cinema, Gloria Palace, Wabaduse Plats, Tallinn,
was equipped with sound apparatus of a phonograph type operated
in the projection booth with a loudspeaker stationed behind the
SCI’oen.
Marska Film Production, 4 Viru tanav, Tallinn, produced two

films in 1929; (1) Vigased Pruudid (Brides with Defects), featuring
Estonian country life, in seven acts, length 2,100 meters, cost of
42
production 1,500 crowns ($400); (2) Dollarid (The Dollars), a feature

film in eight acts, length 2,400 meters, cost of production 7,000
crowns ($1,870).
“Sirius Film (Theodor Luts), 19 Aia tanav, Tartu, produced only
one film in 1929, Noored Kotkad (The Young Eagles), featuring the
Estonian War for Independence, in eight acts, length 2,400 meters,
cost of production 15,000 crowns ($4,000).
Mrs. Ershova, 1 Vene tanav, Tallinn, produced one film, Juri
Rumm (the name of a legendary hero), featuring certain historical
events, in two series, 14 acts, length 4,200 meters, cost of production
15,000 crowns ($4,000).
The only studio in Estonia is operated by Estonia Film, of 4 Viru
tanav, Tallinn. It is equipped for the production of silent films
exclusively.
Motion-picture films for release in Estonia are censored first by
the department of police, political division, Toompea Loss, Tallinn.
Films approved for release by that department are further passed
upon by the Estonian Ministry of Education to decide whether they
are fit and proper to be attended by minors. In compliance with the
decision of the local educational authorities, cinemas usually display
an announcement in their different advertising mediums as to whether
the particular film can be attended by minors.
The report on the activity of film censorship in Estonia, given below,
is made out for the fiscal year ended March 31, 1929. Later figures
are not available.
MOTION PICTUREs CENSORED IN CzechosLovAKIA IN 1928–29
Scientific Dramatic | Comedies News reels Total
Country of origin iT N - - - - - N - -- N | N
|Num- A
| ber | Meters
Num-|
ber
Mato
Meters
Num-
ber Meters
unn-,
ber Meters
in urn
ber Meters
United States------- i---------------- 445, 372 138 95, 233 38 7,700 || 377 548, 365
Germany--- 12,535 - - - - 43 195 380,020
France------ - - - 35, 5 - 28 43,905
Estonia.-- | ,035
Russia--- - * 31,642
Austria-------------|------ !---------- 12 34, . -- 37,000
12enmark-----------|----------------------|---------- r 500 - 7,500
Poland-------------- 5, 400 5,400
Total.--------- 7 13,735 364 870, 793 182 | 150, 954 98 22,385 651 | 1,057,867
It is proposed to equip the following cinemas in Tallinn with sound

apparatus during 1930: Seats
Gloria Palace----------------------------------------- 1,000
Rekord---------------------------------------------- 500
Endla----------------------------------------------- 600
Bi-Ba-Bo-------------------------------------------- 350
In Tartu three cinemas, seating 1,500, are also expected to be

wired during the year.
There is considerable interest in Estonia in sound films. It is
very difficult, however, to ascertain at present where the necessary
equipment and requisites will be purchased. Local cinema owners
are not entirely against the American equipment provided the prices
are reasonably low. Considerable interest is also displayed in sound
43
apparatus which produced sound from the film itself, although it is

tnought to be rather too expensive to warrant a wide use.
Thus far the wiring system employed in local cinemas has been con
sidered to be quite satisfactory. Rearrangements have been made
only in a few houses. Large cinemas have a good wiring system and
operate their own power plants to supply electric current in case the
city power plants fail.
With the exception of cinemas at Tallinn, Narva, Tartu, and
Parnu, those operating in other parts of the country are hardly of
adequate size to warrant their being wired, beyond the first-run
houses.
A number of feature films have been planned for production during
1930. The programs will not be made public as yet, and it may be
that some of the plans will have to be curtailed owing to the lack of
capital.
The local agent of an American concern is awaiting the receipt of a
sound-recording apparatus from New York so that he can start pro
ducing local sound news reels.
The only studio in Estonia for the production of silent films is oper
ated by Estonia Film. It is difficult to say whether any expansions
are proposed for sound filming. The company produced no films in
1929, but may lend the use of its laboratories and studio premises to
other enterprises.
There are no laws in force in Estonia which are in any way inimi
cal to the interests of American films, nor are there any such laws in
prospect.
LAT WHA
By Basil Dahl, Acting Commercial Attaché, Riga
No new cinemas were built in Latvia during 1929, but the Casino,
in Riga, was reconstructed and its seating capacity increased from
550 to 750. No other reconstruction work was undertaken.
Only one motion-picture theater in Latvia, the Splendid Palace, in
Riga, which has a seating capacity of 1,000, is equipped with sound
apparatus, installed toward the end of 1929. It is a German-made
double-disk reproducer (Prasing, Berlin) and costs $4,000 installed.
Two trials were made with sound-reproduction equipment in the
Capitol cinema, Riga, but the apparatus failed to give satisfaction
and no more trials were made. It is reported that the owners of the
latter cinema have made an arrangement with representatives of
Soviet Russian manufacturers of sound-reproducing equipment. For
the time being, however, the Russians are not selling their equipment.
They have offered to lease it to the Capitol cinema for trial purposes
providing they are given 50 per cent of the profits. It is reported that
the Russians will sell their patents to foreign manufacturers as soon
as it has been proved that the equipment is satisfactory.
Two other cinemas in Latvia, the Forum in Riga, having a seating
capacity of 900, and the Kammerspiele in Libau, with a seating capac
ity of 500, are contemplating the installation of sound-reproducing
apparatus in the near future. The owners of motion-picture theaters
in Latvia are, as a rule, familiar with only continental equipment
(chiefly German and French), and the general opinion is that none of
it gives full satisfaction.
It is thought that American equipment, although superior in qual
ity, is much too high in price. Motion-picture theater owners assert
44
that American equipment is sold in Europe at prices that are about

50 per cent higher than in the United States, which price increase,
they think, is not justified. Local film dealers and cinema owners
have shown much interest in catalogues and general sales literature of
American-made sound equipment. It must be borne in mind that the
purchasing power of the Latvians is very low and that this results in
their favoring medium and low priced equipment.
PRODUCTION
Only one film, a silent film called Latvijas Tapsana (Formation of

Latvia), was started during 1929. It is an educational and patriotic
film of local importance and is being produced under the auspices and
at the expense of the Ministry of the Interior and the War Office. It
is 3,000 meters long and cost 32,000 lats ($6,175).
Two dramas of the Latvian studio, Latvju Filma, were completed
in 1929. Both of these are silent films. The first is called Heinrich
Rautenfeld and the second In the Whirl of the Times. The former is
2,100 meters and the latter 1,850 meters in length. These films were
shown in two cinemas in Riga and in the country districts, but without
much success. Latvju Filma went into liquidation recently. It is
estimated that the cost of producing each of its films was less than
10,000 lats. The cost of producing news reels is 105 lats per 150
Inotors.
Sound films have not been produced in Latvia.
There are no studios equipped for sound-film production in the
country.
The company Latkino, m. Peterbaznicas iela 1, Riga, was estab
lished in 1929. This company publishes the film journal Kino and
operates a studio for training film artists. Latkino has not yet
evinced any activity in the production of films.
DISTRIBUTION
The Latvian Film Censoring Board passed 418 feature films

(dramas) totaling 882,773 meters in 1929. Of these, 219, totaling
458,124 meters, were American. The following table shows the num
ber and length of all films passed in 1929, by subject and by country
of origin:
FILMs PAssBD BY LATVIAN FILM CENSORING BoARD IN 1929
American Russian Latvian Others 1 Total |
Type Num,
Num-
sm
Num-
sum.
Nu In-
sun.]
urn-
N
' ber Motors ber Meters ber Metors ber Motors |und"I Meters
I |
- -- -
—
72 35,381 2 670 ------ "… 34 || 13,313 | 108 || 49,364
- 219 || 458, 124 22 43,102 2 | 89 175 381,458 418 882,773
3 * 4,388 1 1,875 14 7, 171 45 28,445 63 41,869
53 : 13,914 1 144 : 61 | 9,646 35 10,286 150 33,990
1 95 ---------------- à #3; #| ||5|| 3 || “...iſ
Total: 1929.--- 348 || 511,902
Per cent of to- |
26 | 45,791 108 19,635 293 :
435,008 || 775 | 1,012,336 |
t - 44.9 50. 58 3.35 4. 52 13.81 1.93 37.80 42.97 || 100 100

327 421,852 23 43,094 175 35,778 395 592,439 || 920 | 1,084, 163
i 35. 54 i 38.08 | 2.50 3.97 : º 00 3. 30 42.93

i 54.65 | 100 100
1 Principally German.
45
Four sound films were censored for release and shown in Riga near
the end of 1929 three in the Splendid Palace cinema and one in the
Capitol cinema. The sound-films shown in the Splendid Palace met
with success, both with respect to technical performance and attend
ance, but the Capitol show was a failure, largely because of technical
reasons. It has been said that the sound-reproducing equipment was
defective.
Only American sound-films have been shown in Latvia.
GENERAL TRENDS
The motion-picture business in Latvia in 1929, as well as other

branches, was adversely affected by the 1928 crop failure, but it is
gratifying to note that the ratio of American films released increased
from 38 per cent of the total length in 1928 to over 50 per cent in 1929.
The first sound films displayed in the local cinemas were considered
a matter of curiosity by the public, and, as a result, all performances
were shown to full houses for two weeks. The subsequent sound
films did not meet with such enthusiasm, and considerable adverse
criticism was heard regarding the reproduction, the value of sound
films in general, and the foreign-language problem. The opinion of
the trade regarding sound films is that “talkies” in a foreign language
will not become popular, but that films with singing and music
(revues, etc.), if satisfactorily reproduced, may meet with the general
approval of the public. One of the leading local motion-picture
experts said that sound-films consisting of about 80 per cent music,
18 per cent singing, and 2 per cent dialogue are likely to meet with the
greatest success in Latvia.
Some of the leading cinemas in Riga that are not equipped with
sound film reproducers, and a few of those in the large provincial
towns, will probably be wired in 1930.
It is believed that not more than one or two feature films and a
number of news reels, all of only local importance, will be produced
in Latvia in 1930.
There is no present plan nor demand for the establishment of
studios with sound recording equipment in Latvia.
No legislation inimical to the interests of American films or equip
ment has been passed in Latvia, nor does it seem that such legislation
is contemplated. However, the attitude of the Film Censoring Board
toward sound film is rather uncertain, and diſficulties may arise.
There are no special laws governing the consoring of sound films, and
no difficulties have been encountered in getting such films passed.
The basic Latvian law regarding silent films stipulates that all titles
Imust be in the Lettish language. Titles in other languages may
follow, but these are considered only as translations and of secondary
importance. Whether an exception in this respect will be made in
the new law on sound films is to be seen. This problem is being dis
Qussed by a parliamentary commission. Whether or not the inser
tion of local news reels in the program will continue to be obligatory
and whether entertainment other than the display of films in cinemas
will be permitted is also being considered by the commission.
LITHUANIA
By Hugh S. Fullerton, American Consul, Kovno
Up until January 27, 1930, no sound pictures were shown in Lithu

*a, but the German film firm Tobis, of Berlin, entered into a con
46
tract with the Odeon Theater of Kovno for the introduction of German
sound films.
The exhibition of sound films must be licensed by the police depart
ment of the Ministry of the Interior, since foreign languages are used.
It appears that license has been obtained for five sound pictures, one
of which is in the Russian language and has not yet been completed.
The apparatus which has been installed in the Odeon was manufac
tured by the German firms Nitsche, of Leipzig, and Jova, of Kassel.
The first sound film produced is the production of the Aafa, of Berlin.
The cost of the entire installation of apparatus in the Odeon Theater
aggregated $4,000.
It has been ascertained that the apparatus being installed in the
Odeon requires an alternating current of 70 volts, while the Kovno
electrical plant provides a direct current of 220 volts, hence a special
transformer costing $140 has been purchased by the Odeon as a sup
plement to the other installation. It is reported, however, that
alternating current will be supplied by the electric-light plant in
Kovno during 1930.
The largest cinema in Kovno, the Metropolitain, is planning the
installation of a sound apparatus, but considerable mystery surrounds.
this project at the present time, and the director declines to give much
information with respect to it. It is known, however, that a promi
nent film director in Riga has been in negotiation with the Metropoli
tain for some time, and it is believed that an effort is being made by
him to lease this IXovno theater for a protracted period in connection
with a plan to extend the sound-film service now being provided in his
theaters in Riga and Tallinn. It is thought that the sound apparatus.
to be used at first will be temporary. American films are to be given
at the Metropolitain, and a well-known American sound film is
scheduled to appear there in the near future.
Persons interested in film representation in Lithuania seem some
what doubtful of the success of sound films because of the ignorance
of foreign languages of a considerable part of the Lithuanian audiences.
It is estimated that in the neighborhood of 50 per cent of the specta
tors are Jews who would understand German, but the percentage
understanding English is very small indeed. Should the sound
film develop in Russia, it would probably have considerable success
here in Lithuania, in view of the fact that the Russian language is
understood by most Lithuanians over 20 years of age.
It is the general impression that American sound films will not
have much success except as a novelty, and it is perhaps the expec
tation of the promotors of sound films for the Metropolitain Theater
that they will have an immediate vogue with theatergoers who are
actuated by curiosity and that by the time this interest dies out,
the cost of the experiment will have been more than met. It is
not suggested that American companies producing sound films
endeavor to compete with present organizations, at least until time
has demonstrated the permanent appeal of this type of film with
Lithuanian audiences.
The Construction Department of the Lithuanian Ministry of the
Interior recently informed a representative of the American consulate
at Kovno that 106 permits for motion-picture theaters have been
issued in Lithuania. That figure does not, however, include the
Memel, or Klaipeda district, formerly German territory, from which
e 47
statistics of this character have not been obtained. The following

statistics show the permits issued by years in Lithuania from 1921
through 1929:
Permits Permits Permits
1921-------------- 7 | 1924-------------- 18 1927-------------- 9
1922-------------- 6 | 1925-------------- 10 | 1928-------------- 16
1928-------------- 22 | 1926-------------- 6 1929–------------- 12
It is estimated that there are not more than 20 cinemas in the

Memel district, which has a total population of about 150,000.
The principal city, Memel, has a population of 35,000, and there
are other centers of 3,000 to 16,000.
According to the Construction Department of the Ministry of
the Interior, only approximately half of the 106 permits issued
have been for permanent establishments.
Kovno, the capital and principal city of Lithuania, which has a
population of approximately 100,000, supports seven cinemas of a
permanent character and of sufficient importance to warrant con
sideration by film producers. These are the following: Metropolitain,
with 700 seats (built in 1929); Odeon, with 450 seats; Slabada, with
280 seats; Record, with 256 seats; Oaza, with 200 seats; Triumph,
with 200 seats; and Palasas, with 138 seats.
Only a few additions have been made, in so far as the Ministry of
the Interior is aware, to the various cinemas in Lithuania during the
past year. No permits are required for remodeling of a minor char
acter in theaters, and no major change in any of the theaters was
reported during 1929.
ºt.There is no film production of commercial significance in Lithuania
at the present time, and it is understood that none is contemplated.
It has been diſficult to ascertain the number of films censored for
release in Lithuania during 1929, but it has been estimated at about
500. About 40 per cent of the films on the Lithuanian screens are
American, about 50 per cent German, and the rest French or Russian.
Despite a rather unfavorable year for Lithuanian agriculture and
industry, the general condition of the motion-picture theaters was
reported to be fairly good.
The establishment of the Metropolitain on the main street of Kovno
was a notable event, and although not usually crowded, the establish
ment appears to be making money.
In general, it may said that price plays a more important part on
the Lithuanian motion-picture market than quality. The buying
power of Lithuania is low, and tastes are different from most other
European or American communities.
There is no discrimination against American films on the Lithuanian
market. On the contrary, they have an established popularity,
despite the accessibility of the market to German producers. The
percentage of German films has grown, however, in recent years.
FINLAND
By C. Roderick Matheson, Secretary to American Commercial Attaché, Helsingfors
Three new cinemas were constructed in Finland during 1929,

including one in Tampere, the Tuulensuu, and two in Helsingfors,
the Gloria and the Atlantis. The Tuulensuu has a seating capacity
of 700, the Gloria 650, and the Atlantis 460.
48
It is customary that theaters which require repairing or recon

struction be worked upon in the summer months in order to be ready
for the winter season, which is usually relatively brisk. During 1929
most of the cinemas underwent major or minor alterations, but their
seating capacity remained the same. The old Bio-Bio Theater, with
a seating capacity of 400, was closed during 1929, and the theater
was moved to what was formerly known as the Bio-Civis, with the
same seating capacity. The net additional number of seats in moving
picture houses in Helsingfors, therefore, totaled 710 and in all of Fin
land 1,410.
The Arena (470 seats), Capitol (900), Kino-Palats (800), and the
Gloria (650), all in Helsingfors, were equipped with sound devices
during the year. The equipment in each case was American.
Four feature films were produced in Finland during 1929 by Suomi
Filmi, Helsingfors, and three of them shown in the Helsingfors
theaters. These films were entitled “Kajastus,” “Korkein Voitto,”
and “Kahden Tanssin Valilla.” The fourth will be shown in 1930.
(). Y. Kotka Filmi produced one film, Juhla Meren Ranalla. Suomi
Filmi, which is the only company in Finland producing feature films
according to a continuous production program, is not equipped to
produce sound films, nor is (). Y. Kotka Filmi; and neither at the
present time contemplates the installation of devices for the produc
tion of sound pictures.
The only sound films shown in IIelsingfors during 1929 were
American.
According to the Finnish Board of Censors, 469 American films,
aggregating 615,040 meters, were passed by that body in 1929. Other
films passed by the board included Germany, 154 films, 205,980
meters; France 25, 50,045; Russia 30, 41,145; England 23, 37,565;
Sweden 22, 21,275; and Denmark 5, 10,230 meters.
Thirty Finnish films, principally of an educational nature, were
passed; these aggregated 20,875 meters in length.
The censors rejected 26 films of a total length of 49,130 meters
during 1929. These originated in the following countries: United
States, 9 of a length of 15,260 meters; Germany, 5 of 12,370 meters;
France, 1 of 2,130 meters; and Russia, 11 of 19,370 meters.
There is no legislation in effect in Finland inimical to the interest
of American films, nor is any anticipated.
During the greater part of the year attendance at picture houses
was considered good: during the last six weeks or two months of
1929, however, the depressed conditions in the country appear to have
a material effect on the attendance, and many of the larger cinemas
played to very poor houses. While attendance during the Christmas
and New Year holiday season is usually rather small, the winter
season, as a whole, is normally the cinema season. The 1929–30
winter season is not expected to be as satisfactory as usual for the
motion-picture houses.
POLAND
By Gilbert Redfern, Assistant Trade Commissioner, Warsaw
While the advent of the sound film has been the cause of uncer
tainty and anxiety to the motion-picture trade in Poland, it has had a
very beneficial effect on the local film industry. During recent months
49
a pronounced demand from several European countries, notably

France, Germany, and Czechoslovakia, has sprung up for Polish
silent films, and it is reported that better prices are now being realized
for them than the producers had ever hoped for. It is hardly likely
that this unexpected demand is raising the Polish film industry to a
position of affluence, but it undoubtedly means that the business is
not so unprofitable as it would have been without the advent of the
sound film.
The sound film has been by no means enthusiastically received in
Poland. To begin with, only a very small percentage of the Polish
people understand English. The criticism is also generally made that
the sound films so far exhibited have been lacking in artistic merit.
The Poles have a highly developed artistic sense. It is the custom,
when exhibiting a feature sound film in Poland, to cut out the dialogue
completely, virtually making it a silent film with musical accompani
ment and with subtitles in Polish.
Apart from the language difficulty, the majority of Polish cinema
owners are restrained from installing sound-reproduction equipment
because they can not afford it. A number of the leading owners in
the large cities, however, are still waiting for the cost of the principal
American makes to come down or hoping that a cheaper set of
unquestionable quality will come on the market. Twenty thousand
dollars or thereabouts for renting sound-reproduction equipment is a
considerable amount for a Polish cinema proprietor.
No sound equipment is yet manufactured locally, and experiments
so far made with French and German sets have not given satisfaction.
Apart from the perplexing situation caused by the entry of the
sound film, owners of motion-picture theaters in Poland in general
had an unsatisfactory ſinancial year in 1929. They were greatly
affected by the abnormally severe weather in the first three months
of the year and later by the acute industrial depression. To compete
with the talkies, many owners of silent houses are now offering vaude
ville programs. This, of course, means an appreciable addition to
their costs. The price of silent films also increased considerably
during the year.
Polish feature films completed during 1929 totaled 12, as compared
with a production of 14 in 1928. It is estimated by the trade that the
average production cost per film in 1929 was in the neighborhood of
$30,000, whereas in 1928 the average production cost was estimated
at about $25,000. The following is a list of Polish completions during
the past year, with name and address of the producing companies,
all at Warsaw :
Mocny Czlowiek---- - - - - - - - - - - - - - - Gloria, Marszalkowska 1 19.
Szlakien Haſby - - - - - - - - - - - - - - - - - - - Starfilm, Marszalkowski, 125
Pod Bander:} Milošci- - - - - - - - - - - - - - - Lux, Jasna 24.
9.25----------------------------. Jarfilm, Nowy Swiat 19.
Policmajster Tagiejew - - - - - - - - - - - - - - Leofilm, Nowy Swiat 39.
Kobieta Ktora Grzecha Pragnie - - - - - - Bioganski IV rolewska, 35.
Moralnośc Pani Dulskiej-- - - - - - - - - - . Heros, Jerozolinska, 31.
Halk"---------------------------- Wirfilm, Sienkiewicza 12.
Mascotte-------------------------- Iſorodyski St. Didier Co., Mazowiecka
Z Dnia na Dzien ------------------- Enhafilm, Marszalkowska 125.
Sfinks, St. Krzyska 35.
Grzeszna Milošć - - - - - - - - - - - - - - - - - - -
Pierwsza Milošć Kosciuszki------ - - - - Bigoszt, Hoza 56.
50
The following table shows the films imported into Poland, classified
as to countries of origin, as reported by the Film Bureau of the Min
istry of the Interior. No figures are available for 1929.
IMPORTS OF MOTION-PICTURE FILMS INTO POLAND
|
Country of origin 1924 1925 1926 | 1927 | 1928 | Country of origin 1924 1925 | 1926 1927 | 1928
Austria-----------
Czechoslovakia
84
2
81
3
59
l
&|
13
73 Soviet Russia.....
6 Sweden - - -
2
7
6
4
s2 10
10 || 30
4
Donmark 18 8 19 17 15 United States 370 629 |1,043 1, 294 1,443
180 283 175 274 250 Other countri 7 7 1 12 6
217 130 || 146 , 350 337 - -
17 | 4 8 : 33 58 Total.------- 940 1, 189 |1,477 2,082 2,303

36 34 | 19 10 26 i
I
No authoritative figures are yet available on the number of cinemas

or the aggregate seating capacity. There were, however, no com
pletions of outstanding importance during 1929, and the trade esti
mates that the total seating capacity was increased but slightly
during the year.
The latest figures given in the Film Almanac, a trade publication,
show a total of 861 registered motion-picture theaters in Poland, with
an aggregate seating capacity of 200,000 to 225,000. Since many of
these are small-town houses, the seating capacity is largely guesswork.
Moreover, it is estimated that not more than 30 per cent of the cinemas
in Poland are open all the year; most of the small-town houses are open
only occasionally during the week, while in holiday resorts, health
resorts, etc., cinemas are open only for three or four months of the
year.
At the end of 1929 the following cinemas had been equipped with
sound-reproduction apparatus: Splendid, Warsaw; Palace, Lemberg;
Swiatowid, Warsaw; Splendid, Lodz; Uciecha, Cracow; Tencza,
Warsaw; Apollo, Lemberg; and Sztuka, Cracow.
The following houses were being wired at the end of 1929: Atlantic,
Warsaw; Colosseum, Krolewska Huta; Rialto, Kotowice; and Kino
Miejskie, Bielsko.
The Capitol cinema in Lodz and the Quo Vadis and Palace in War
saw have experimented with French and German sound-reproduction
equipment, but the results obtained, it is reported, were unsatisfactory.
So far, only one studio in Poland is known to have been equipped
for the production of sound films. This is the Syrena studio on
Wisniowa Street, Warsaw, owned by the leading gramophone record
producer in the country. It is the understanding that for the present
the Syrena company will make only shorts.
SWITZERLAND
By Henry E. Stebbins, Clerk to American Commercial Attaché, Berne
The greatest change in the motion-picture situation in Switzerland

since the opening of the first cinema was the inauguration on March 8,
1920, of the first talking picture. This revolutionary development
came late in Switzerland for several reasons, the language difficulty
was by no means the least of these. One-language projection is not
sufficient in Switzerland. This situation has been a problem in the
silent pictures and is merely accentuated in the talkies. The second
51
contributory cause of the slowness in arrival of the sound film in the

country is the policy of the general European film distributors, who
look upon Switzerland as a market decidedly secondary in importance
to such countries as England, France, and Germany. As a nonproduc
ing country, Switzerland was a tempting market for left-over silent
films, which accumulated rapidly after the first wave of popularity for
the talkie was manifested in the United States. Finally, the Swiss
theater owners and managers balked at the high price of sound instal
lations. With the movie theater market frankly glutted, owners
whose houses were rarely, if ever, packed did not feel justified in mak
ing large outlays for a development which they felt in many cases
would not give them the necessary increased patronage.
However, with the opening of the Orient Theater in Zurich for sound
projection in March, others followed at varying intervals. The Orient
was equipped with the German Tobis sound apparatus. To-day there
are 10 cinemas in Switzerland equipped to show sound films. They
are, aside from the Orient which seats 700 persons, the Capitol in
Zurich, seating 1,300 people; the Apollo, Zurich, seating 2,000 persons;
the Alhambra, Geneva, seating 1,300; the Molard, Geneva, seating
670; the Capitol in Basel, seating 1,200; the Palace in Basel, equipped
with the German Tobis Klangfilm apparatus and seating 500; the
Flora in Lucerne, seating 380; and the Splendid-Place in Berne,
seating 700. All those in which the equipment is not specifically
mentioned have American apparatus.
Plans for wiring the Kapitol, Berne's newest cinema, have been
F.F.' indefinitely on account of the expense. In spite of this
andicap, the Kapitol continues to run feature films to large audiences.
They are now showing silent versions of well-known American talkies.
Doubtless this theater will be wired during 1930. The Bubenberg
Theater in Berne, seating 900, will be wired early in the year.
Other plans for 1930 include the wiring of the Scala Theater in
Zurich, seating capacity 1,100. This is a new theater, having been
completed in 1929. Plans are also being made for the wiring of the
Pax in Locarno, which seats 300. This letter is in the Italian-speaking
Canton of Switzerland. Plans doubtless include the wiring of certain
theaters in Lausanne, most probably the Moderne, although no infor
mation is definitely available on this point as yet. The Scala in
Bienne was wired early in 1930.
Seven new cinemas were completed in Switzerland during 1929,
while four were closed. The new theaters are the Picadilly in Zurich,
seating 250; the Colosscum in Zurich, seating 350; the Lichtspiele
in Bischof...ell, seating 220; the Bel-Air in Yverdon, seating 650:
the Kapitol in Berne, seating 874; the Scala in Bienne, seating 1,000;
and the Capitol in Bienne, seating 1,200. The four theaters that
were closed were the Eden in Zurich, with 350 seats: the Maxim in
Zurich, with 600 seats; the Union in St. Gall, with 270 seats; and
the Klein in Schaffhausen. In addition to these, two cinemas with
only occasional performances, the Excelsior at Binningen and the
Seewadel at Bauma, were closed. The total net increased seating
capacity was therefore only a little over 3,000. Three cinemas were
reconstructed during the year, the Gottardo in Bollinzona, with 300
seats, the Palace in Lucerne, with 380 seats, and the Moderne in
Lucerne, with 600 seats.
52
Arrangements have been made for the opening of seven new cinemas
during 1930. They are to be the Lichtspiele in Schwanden, the Kino
Leuzinger in Frauenfeld, and one each in Wattwil, Lugano, St. Gall,
Liestal, and Schaffhausen. The Lichtbuhne in Zurich, now seating
450, will probably be enlarged during 1930.
Several new companies have been formed during the past year
for the promotion and sale of motion pictures in Switzerland. From
the American point of view the most important of these is the branch
of an American distributor in Geneva. Other new film-promotion
agencies in Switzerland are the Cenſlag A. G., of Lucerne, with a
capital of 70,000 francs; the ESA S-A., of Bienne, with a capital of
3,000 francs; and the Standard Cine-Photo A. G., of Zurich, with a
capital of 20,000 francs. The Cie Generale du Cinematographe,
which in 1928 was moved from Geneva to Zurich, increased its
capital and plans some expansion, although the expected fusion with
Emelka did not materalize.
SWISS OPINION REGARDING SOUND FILMS
Differences in the professional and lay attitude toward the talkie

have been wide. After the first sound film was shown in Basel, the
Basler Nachrichten, a large daily newspaper, conducted in its cor
respondence columns a forum on the future of the talking picture.
As comparatively few of the readers of the Nachrichten had had
much of an opportunity to judge the talkies, the forum lasted only
a few days. What opinions were given, however, were, on the whole,
unfavorable and immature. As might be expected, the loudest cry
came from those who felt that the language feature was the greatest
handicap. Up to that time, Basel audiences had had opportunities
to see only American– that is, English-speaking—filmis. The demand,
of course, was for German dialogue. A few protests were made
against the mechanics of reproduction, one correspondent claiming
that the women's voices sounded like men's and the men's like bass
( I'll llls.
Those in favor of the talking film emphasized the musical aspects

of the presentation especially songs and dances which the people
could see were actually synchronized. One difficulty which arises in
Switzerland in respect to this question is the fact that actually
synchronized pictures—- that is, the so-called “100 per cent all-talk
ing '-' can not be shown in English versions. In its stead must be
shown silent pictures with a synchronized sound accompaniment,
which, after all, is very similar to the old silent picture aided by an
orchestra. Short musical subjects, songs even though sung in English,
have a great appeal, but there is undoubted irritation at the dialogue
parts of sound pictures when the language is English.
The opinion of the trade is, on the whole, decidedly favorable
toward sound pictures. Owners and managers realize that the
talkie, like the radio, has come to stay. For a large part they pin
their hopes on the productions of the German and French studios.
At present the American sound picture rules the market; whether
it will continue to do so is an open question. If the German and
French studios can produce sound films approaching the American
product in quality, the Swiss public and theater owners will be satis
fied. The solution, as far as the Swiss market for American producers
is concerned, is to concentrate on musical comedics, operettas, etc.,
53
as well as high-grade musical short subjects. The people will soon

lose interest in the mechanical device as such and as displayed in
sound synchronization of silent pictures. What they want is the
added realism given to the movies by actual synchronization. If
this is in the form of music and dancing they will flock to see it,
but if it diſſers little from the old silent picture they will confer their
patronage on talking pictures made by the Germans and the French.
PUBLIC PREFERENCES
The general feeling is that the best films are American—which is

natural, it is claimed, because most of the films shown are American.
Second in importance after American films are the German. Certain
German stars are immensely popular in Switzerland, at least in the
German-speaking part, and there can be no doubt of the general
popularity of German films. It is usually the Germans who come into
Switzerland to film Alpine pictures, such as the “Drama of the
Matterhorn' and the “White I toll of the Piz Palu.’’ French films are
generally not popular. One French talkie has been shown in Berne,
but was by no means a great success. A certain amount of English
films are shown, but they are almost invariably poor. The German
version of the English talkie .\.ſlantic, bowever, had great success in
Zurich.
On the whole, the people like spectacks. German romances are
usually good drawing cards, as are American western pictures.
PRODUCTION
Production in 1920 was even loss than in 1928. The Schweizerische

Schul und Volkskino turned out four pictures, all sile:1t and all having
to do with the industries of the country. They were on the dairy
industry, horse breeding, cattle breeding, and the textile-machinery
industry.
The Helvetia A. G., of Berne, reached its peak in the production of
its ſirst picture, Petronelle, which was produced in 192S and for the
production of which the iſ elvelia company was originally formed.
Since then it has declined notice:bly. In 1929 it made only two
films, one of three reels and one of six. The short picture was called
Sport Rivals and was taken in the skiing fields of the Jungfraujoch
and Murren. The other, called the Path Through the Night, was
made in England.
The Praesens Film Co., of Zurich, made one picture as propaganda
against the evils of alcohol. The producers of this film felt that they
had to go carefully in making the picture, for fear of offending the
general public, and the result was rather ineffectual. The Eggli Co.
made one film on riſle shooting in Switzerland.
No sound films were made in Switzerland during 1929, for there are
no studios equipped to make such productions. In all likelihood,
there will be no attempt made at such productions in the country
during 1930.
("ENSORSHIP
Censorship is in the hands of the cantonal authorities, who exercise

their right in a very liberal way. A representative of the control board
makes a weekly round of the cinema theaters, notes what parts of
pictures he feels are objectionable, and advises the owner of the theater
in a friendly way to cut out those portions. Full cooperation is
54
received from the theater owners, and as a result there is rarely any
publicity in regard to censored films. The general public never knows
when a film has been censored. Very rarely are whole pictures not
allowed to be shown. -Zurich and Lucerne are the two strictest Can
tons. In Zurich, in 1929, 649 pictures were reviewed by the censors,
and of these 644 were allowed to be shown, and only 49 of them were
Cult.
What amounts, however, to a very real censorship, although not
a moral or political one, is the system employed whereby pictures are
cut to conform to the demand for 2-feature pictures in a 2-hour show.
Often pictures are so drastically cut that the continuity is ruined.
Whole slices are taken out which are of the utmost importance to a
clear understanding of the picture. It is true now, however, that this
tendency to cut is being controlled in the showing of American talking
pictures, which are of such length that it is manifestly impossible to
show two features in one period.
AUSTRIA
By John A. Embry, American Commercial Attaché, Vienna
The salient feature of Austrian motion-picture situation during

1929 was the rapid conversion of silent cinemas into sound cinemas.
During the year 23 cinemas in Austria were wired for sound films,
of which 15 employed American sound equipment. According to the
trade, the saturation point for sound-film equipment in Austria has
already about been reached unless the price of sound equipment can
be considerably reduced. Prospects for additional orders are said
to be very poor with prices at their present level. Below is given a
list of the cinemas in Austria which were equipped with sound
apparatus during 1929, their location, seating capacity, and the type
of equipment used.
AUSTRIAN MOTION-PICTURE THEATEIts WIRED DURING 1929
| . .
Name City | capacity
Soating Equipment
Burgkino--- - - - - - - - - - 393 American.

Flite-Kino (Kl. Buehne - - - - - - - - - - - - - - - - - - l 500 I)0.
Gartenbau Kino------ ------ 500 I)0
Tuchlauhon Tonſilm Kino- - - - - - - - - - - - - - -do- - - - - - - - - - - - 400 TNo.
Schwedan Kino - - - ------- d 642 | T)0.
Kino Lustspieltheater-- - 1, 100 I)0
Atlantis Kino ---------- 600 T)0
Apollo Kino------------ 1,440 . I)0
Schottenring Kilio_-- - - - 360 I)0
Mari: Thorasian Kino-- 542 I)o.
Kolossotim Kino - - - - - - - 7 I)0.
Mozartlichtspicle.--------- 440 I)0
Votivnarkkino- - - - - - 411 I)0
Kino Handl ------------...- - - - - 700 l)0
Annenhof Kino----------- -- - 1,000 I)0.
Busch Kino. --------- - : 1,923 , Klangſilm.
Uffa-Tonkino - - - - ----- - 1, 038 : I)0.
Haydn Tonſilinkino-- - - - - - - - 620 100.
Ilux Palastkino. ------. - - - - - 800 Biophon.
Ring Ton Kino.---------- ſir; - 304 1)o.
Kino Eisenbahnerheim -- . - Vi 484 || Selenophon. ---
Kammerlichtspiclo Mirabell Salzburg------- 400 Marconi-Gefra (British

Austrian).
Zentralkino-------------------------- Wienor Neustadt----------. - - 550 | Astra-Ton (Austrian).
O)
There were no new cinemas constructed in Austria during 1929, and

according to trade estimates, the total seating capacity has remained
unchanged.
Nineteen feature films were produced in Austria during the year
at a total cost of about 2,100,000 schillings ($300,000), which makes
the average cost per film about $15,800. All of the films produced
were of the silent type. Austria is not yet in a position to produce
sound films for commercial purposes, and it is extremely doubtful
if it will ever become a competitor in that line. There is only one
studio in Vienna equipped to produce sound films (Selenophon), and
that studio has not entered upon production of either sound shorts or
features.
The feature films made in Austria during 1929 were produced
enerally by persons more interested in the import permits received
or their films than in the commercial possibilities of the film itself.
It is not believed that the pictures produced possess sufficient merit
to give them an appreciable market outside of Austria.
In addition to the 19 feature films produced in Austria during 1929,
there were also produced 160 shorts.
The United States continued, during 1929, to supply the bulk of the
feature films and shorts imported into Austria, as will be seen from the
following table. Of the total number of feature films imported
during 1929, 15 were sound films, of which 14 came from the United
States and 1 from Germany. Silent versions did not accompany
these films but will probably be brought in later.
AUSTRIAN IMPORTS OF MOTION-PICTURE FILMS DURING 1929
|
Country of origin Features | Shorts
("ultural
filins
º i
Features | Shorts
Cultural
films
U’ nited States Switzerland i
| Hungary -
| Brazil -----------------------
; Others ---------------------- i
Total -------- 435 906 49
Sound films have been well received in Austria, and most cinemas
showing them have packed houses. In view of their extremely recent
appearance in Austria, it is not possible to judge whether the novelty
is contributing largely to that popularity. Practically every cinema
in Austria of adequate size either is already wired for sound films or
has contracted for such wiring in the near future. Some of the cine
mas already wired have such a small seating capacity that it is difficult
to see how they can prove a financial success. The need of larger
and better-ventilated cinemas in Austria has long been felt, but
there is little prospect of the situation improving in the near future
because of existing unfavorable legislation regarding motion-picture
concessions.
Austrian motion-picture production plans for 1930 are very vague,
and the production situation will doubtless undergo little change.
The number of film import permits issued in 1929 for each approved
film produced in Austria during 1929 was 22. By a regulation of the
56
Ministry of Commerce, published recently, the issuance of film import

permits up to August 31, 1930, will be as follows: Licenses
APPROVED AUSTRIAN SILENT FILMS PRODUCED DURING JANUARY, 1930--- 21
FROM FEBRUARY 1 To AUGUST 31, 1930

Entirely Austrian-made silent films costing at least 60,000 schillings.----- 13
Films produced wholly or in part in Austria on the production of which at
least—
Seventy thousand schillings was spent in Austria------------------ 15.
Eighty thousand schillings was spent in Austria------------------- 17
Ninety thousand schillings was spent in Austria- - - --------------- 19
One hundred thousand schillings was spent in Austria- - - ---------- 21
Sound films produced entirely within Austria shall receive a bonus in excess
of the above schedule of ----------------------------------------- 10
For the application of the last clause, sound films are defined as
follows: “By sound films is meant those films whose accompanying
music, noises, song, or speech is recorded on the film ribbon or on
records in such a manner that by mechanical means they can be
synchronously reproduced.”
The above regulations apply only until August 31, 1930, at which
time the whole question of artificial trade restrictions will be revised
in accordance with the Geneva Convention of 1928.
HUNGARY
By WalteriM. Slavik, Assistant Trade Commissioner, Budapest
No new motion-picture theaters were built in Hungary during

1929; the number of cinemas, therefore, remained at 524 and seats
at 180,049.
Enlargement by 600 of the seating capacity, of the Urania theater,
Budapest, was started in 1929. Two weeks before its expected
opening (February 1, 1930) it was severely damaged by fire, necessi
tating its entire reconstruction. No other reconstruction is reported
in 1929.
The following cinemas were equipped with sound apparatus in
1929.
HUNGARIAN THEATERS WIRED For Sound FILMS IN 1929
riv
Theater I,0(ation
-
º:
Seating
Apparatus
Forum --------------------------- Budapest. --------------------------- 780 || American.

Royal Apollo - - -----do-------------------------------- - 1,010 Do.
IXocsi. --------- - - - - ------- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 651 Do.
Capitol------ - - - - - - - - -- - - - - - - - - - 624 I)0.
Jozsefvarosi-- - 650 I)0.
- s D0.
(`sepel - 734 || Meitner-Philips.
Budapes 711 || Klangſllm.
Do
- 370 | Gaumont.
I ial -- 267 || Vestaphone.
imperial----- - 564 |l tº as
Omnia ------- - - - - - - - - 585 }Edibell. 1
Do -------
Orion-----------------------------|----- - - - - - - - - --
| 585
320 }Gerard. l
| The 2 theaters have the 1 apparatus in common, alternating its use.
In January, 1930, sound apparatus was installed in the Pfulumm

Theater, seating capacity 1,200, in Pesterzsebet, a suburb of Buda
* The text of the regulation is given in the appendix of this bulletin.
---
57
pest. Sound apparatus was planned for 1930 by seven other theaters,
with a combined seating capacity of 3,782.
The Corvin, the largest theater in Budapest (capacity, 1,217), also
plans installation of Klang film apparatus very shortly. The Urania
had planned a similar installation before its burning. Plans for recon
struction and sound installation are now entirely unsettled.
The following feature films were started in Hungary in 1929:
Kossuth, or Spring in the Storm (Tavasz a Viharban); A Bird in a
Cage (Rabmadar); There is Just One Girl in the World (Csah egy
hislany van a vilagon); and Eternal Love (Orok szerelem). These
films, all of which were silent, cost an estimated total of 390,000
pengos ($68,250), an average of about 100,000 pengos ($17,500).
Kossuth was produced by Steinhard-Szekeres; A Bird in a Cage,
by Zsabka, Kalman; There is Just One Girl in the World, by Gal,
Bela; IEternal Love, by Bethlen-Lazar.
The producers make their sporadic attempts in the rented studios
of the Hunnia or Star companies, the only legitimate production
companies in Hungary at present. No studio in Hungary is yet
equipped for sound production.
Hungarian authorities censored 1519 films of a total length of
1,797,667 meters during 1929. Of these, 786 films of a length of 938,
670 meters were American, 293 of 487,033 meters were German, 253
of 103,205 meters were Hungarian, 83 of 78,840 meters were British,
52,000 of 87,800 meters were French, 24 of 43,331 meters were
Austrian, and 28 of 58,787 meters were from other countries. The
18 sound films censored in 1929 came from the United States and Ger
many.
The most interesting feature of 1929 affecting the motion-picture
industry was the issuance of a governmental decree " providing that
for every film produced in Hungary above a certain length and whose
production cost was above a certain sum would be granted 20 censor
ship certificates. Every foreign-produced film requires one of these
censorship certificates before it can be censored. The distributors
of American films were able to have most of their films for the coming
Season censored before the decree went into effect, but a few certificates
were required, about $265 each being charged for these certificates.
With the introduction of sound films in the fall of 1929, the film
business picked up considerably. The last months of the year wit
nessed an economic depression and a general lowering of the buying
power of the public. This adversely affected the theater business,
and theater owners are complaining of poor attendance, while dis
tributors report they are having diſliculties in sales and collections.
As in previous years, American films remained by far the most
popular and in greatest demand.
Generally speaking, the trade expects the sound films, now that they
have been introduced, to show the same rapid ascendancy as in the
United States. Theater owners with suſlicient capital prefer the
Sound films, as they make more money from them, but poorer owners
in Budapest and the Provinces are disinclined to move until they
must. However, lack of capital is the chief impediment at present.
The striking success of Hungary's first sound picture has convinced
most theater owners they they must add sound equipment or lose
their patronage. Most of them, however, are inclined to restrict
*The text of the decree is given in the appendix of this bulletin.

58
their outlay as much as possible and to install cheap apparatus which,

regardless of quality, gives them the right to advertise sound perfor
mance. All the larger provincial houses and second and third
run houses desire sound equipment. Quite a few have already made
moves in that direction.
No concrete plans for sound-film production have yet been formed,
but the manager of the Hunnia Film Co. has declared himself in
favor of equipping his studio for making sound pictures.
At present contingent licenses for feature films cost both American
and foreign distributors 1,500 pengos ($265) each. In addition they
must pay 20 fillers ($0.035) per meter to the films fund and 7 fillers
per meter for censorship, In contingent tickets, four short films are
regarded as the equivalent of one feature film.
According to distributors, motion-picture business is good in the
capital and other large cities, especially in sound-equipped theaters,
but poor in the rest of the provincial cities. Over 100 houses are re
ported behind in their rental payments.
SPAIN
By Julian C. Greenup, American Trade Commissioner, Madrid
The outstanding feature in the Spanish motion-picture trade during

1929 was the introduction of sound films. Several important thea
ters in Madrid and Barcelona installed equipment and presented
sound films toward the middle of the year, and at its conclusion
Bilbao, Zaragoza, Valencia, and Sevilla had either secured equipment
or taken definite steps toward that objective. The public was en
thusiastic upon hearing the first sound films, and the theaters were
well filled during the first few weeks. Interest subsequently de
creased, and there was noticeable impatience, owing to the inability
of the masses to understand the foreign languages used. The opinions
of a number of authorities agree that foreign-language sound films
have passed the peak and that the future success of sound programs
in Spain depends upon the use of the Spanish language.
At the beginning of 1930 sound equipment was in operation or
definitely decided upon by the following theaters:
Madrid: Make
Callao------------------------------- American.
San Miguel--------------------------- Do.
Palacio de la Musica------------------- IDO.
Real Cinema------------------------- IDo.
Monumental-------------------------- Do.
Royalty------------------------------ Melodion.
San Carlos--------------------------- American.
Cinema Espana----------------------- Do.
Barcelona:
Coliseum---------------------------- Do.
Tivoli------------------------------- Do.
Paris Cine--------------------------- Gaumont.
Femina------------------------------ American.
Bilboa:
Coliseo Albia------------------------- IDo.
Buenos Aires------------------------- Do.
Zaragoza:
Cine Alambra------------------------ Melodion.
Quintana y Cia----------------------- Syntax.
Sevilla:
Llorens------------------------------ American.
Valencia:
Olympia----------------------------- Do.
59
Other makes of sound film equipment are on the market, but as far
as is known no sales have been made. The principal ones are the
Zeiss-Ikon, based on German and British patents, and the Electro
Vox line.
DISTRIBUTION
The subject of distribution may be described more accurately by

following the “temporada,” or season, which is from September 1 to
August 31, rather than the calendar year. The 1928–29 season was
exclusively of silent films. For the 1929–30 season distributors have
brought in very close to 500 feature films, or about 100 less than for
the previous film year. Approximately 75 per cent, or 375 films, were
of American origin, 50 were German, 40 French, 15 British, and 20
Italian, Swedish, Danish, and others. Around 125 were sound films
(music effects, talking, etc.), and the United States supplied not less
than 120 of that number. One German and one British sound film
have been mentioned as the only non-American products of impor
tance. From 90 to 95 per cen of the sound films were accompanied by
silent versions.
DOM ESTIC PRODUCTION
Local film manufacturing may not as yet be described as an indus

try. Numerous persons and firms are listed as producers, but few are
equipped for complete production. Several successful films purporting
to have been of Spanish origin are said to have been made in whole or
in part in France and Germany, and in other cases it is not known
exactly where or how manufacturing is accomplished. It appears,
however, that from 20 to 25 feature films were completed in Spain
during the year, and 3 of them involved sound. Little progress has
been made in the production of sound short subjects.
The average cost of domestic films is about 100,000 pesetas
($19,300), with 50,000 and 200,000 pesetas as limits for 1929. As to
studios, among more than 20 advertised, it would appear that the
only ones which have produced regularly over a reasonable period of
time are Madrid Film (Enrique Blanco, owner), Carrera de San
Francisco 4, and Omnium 8. (Emilio Sanz Cruzado, owner),
Bravo Murillo 26, both of Madrid. These two companies report
their total investments in equipment as 600,000 and 150,000 pesetas,
respectively. Laboratories suitably equipped for developing, cutting,
title making, etc., are operated by Madrid Film, mentioned above,
and Trilla, S. A., Rosellón 255, Barcelona. Fifteen other laboratories
purport to be functioning.
Prospects for production in 1930 indicate that few additional films
over the 1929 figure will appear. However, a greater proportion of
sound films are anticipated, along with an improvement in the
quality of both kinds. It is doubtful that additional studios will be
equipped with sound apparatus.
La Sociedad Patria Films, Paseo del Prado 14, Madrid, is reported
to have been formed with a capital of 2,000,000 pesetas for the
purpose of manufacturing sound films by the patent of Jose Luis
Fernandez Ayuso, which consists of a synchronizing apparatus using
a disk and loud-speaker and requiring no special projector. The
company plans to produce two sound films in the near future, to be
called “La Patria Chica ’’ and “Isidrin, o las Cuarent a y Nueve
Provincias.”
60
No other studio is known to be equipped permanently with sound

apparatus. . - -
The following more or less successful films were produced in Spain

during 1929:
1. L’Auca del Sr. Esteve, produced by Troya Film Cia., Princesa 19, Madrid.
2. Claveles de la Virgin, Florián Rey, director.
3. Zalacain, el Aventurero, said to have cost about 250,000 pesetas.
4. Hollywood Madrilena.
5. Viva Madrid que es mi Pueblo, produced at the end of 1928 and released in
1929 by Madrid Film. The low cost of this film, 125,000 pesetas, resulted from
the free services of the famous bullfighter Lalanda, who was connected with the
film. It is said to be the best Spanish production and to have rendered a net
profit of 300,000 pesetas. Directed by Fernando Delgado.
6. El Tren, produced by Julio Cesar, S. A., Marqués de Urquijo 13, Madrid.
7. La Copla Andaluz, produced by Madrid Film, director, Ernesto Gonzalez.
8. El Rey que Rabio, Madrid Film, José Busch, director.
9. El Guerillero Juan Martin, el Empecinado, Madrid Film, José Busch,
director.
10. El Suceso de Anoche, Leon Artola, director.
11. El Heroe de Cascorro, Emilio Bautista, director. (Distribution prohibited
because it dealt with wars in Cuba before the Spanish-American war.)
12. El Misterio de la Puerta del Sol, a synchronized sound film produced by
D. T. M. Vitores and directed by Francisco Elias. Not especially successful, |
probably because of insufficient experience in sound-film production.
13. Futbol, Amor, y Toros, a sound film synchronized with disks, directed by
Florián Rey.
14. El Sexto Sentido, Nennisio Soire vila, director.
15. Gloria, produced by Omnium Cine, Adolfo Aznar, director.
16. Sugestion, Arturo Beringola, director.
17. Esperanza, Jose Ruiz Miron, director (practically finished).
18. La Alegria que Pasa, Sabino A. Micon, director (almost finished).
19. El Gordo de Navidad, Madrid Film, Fernando Delgado, director.
20. 48 Pesetas de Taxi, Madrid Film, Fernando Delgado, director.
21. Estampas Espanolas, synchronized sound with disks.
The ATER CONSTRUCTION
Ten new motion-picture theaters are known to have been con

structed during 1929, six of which were in Madrid: Europa, 2,500
seats; Metropolitano, 2,500; Castilla, 900; Delicias, 2,000; San Carlos,
2,000; and Palacio de la Prensa, 1,000. A new theater with 1,800
seats is being constructed on the Avenida Reina Mercedes in Sevilla.
The aggregate seating capacity is estimated at 15,000, or an average
of 1,500 each.
At the end of 1929 not fewer than 300 motion-picture theaters were
functioning daily and 1,740 irregularly. In addition to these, about
1,035 literary and vaudeville theaters were showing motion pictures
occasionally. Moreover, from 250 to 300 other amusement places,
as bull rings, football fields, schools, hotels, cafés, and clubs, were
using films during certain seasons of the year. The Anuario del
Cinematografista for the 1928–29 season published the names of
3,357 theaters or amusement places showing films.
From 100 to 150 theaters have been reconstructed as a result of
the fire in the Novedades theater in Madrid. Little additional
seating capacity was added, however, as the reforms consisted
chiefly in metal screening for fire protection.
There is no set policy as to wiring. Most operators seem to be
unconcerned, or at least awaiting the lead of foreign developments.
61
LEGISLATION
There was no important legislation in 1929 against the importation

or projection of foreign-made films or motion-picture equipment.
One unsuccessful attempt was made by a firm possessing patent rights
to prohibit the exhibition of sound films manufactured by competing
equipment, and throughout the year there were numerous press
rumors concerning legislation to restrict film imports and to levy
special taxes for stimulating domestic production. In March a
commission was appointed to study the industry, but its findings have
caused no new legislation. At the end of the year the situation
remained unchanged, and the trade anticipates no important legisla
tion in 1930 affecting the foreign trade.
During the year American film prestige not only held ground but
increased.
PORTUGAL
By J. L. Pinkerton, American Consul, Lisbon
During 1929 six new movie theaters were constructed in Portugal,

their combined seating capacity being 5,100. Two smaller cinemas
were reconstructed. No cinemas in Portugal are equipped with sound
apparatus, and it is not expected that it will ever be generally used.
There is a rule of the Portuguese Government that no foreign lan
guage, not even one phrase, is to be used in the titles of silent films or
speech of sound films.
Three ſilms, all silent, were produced in Portugal during 1929; one
of 4,000 meters costing about 100,000 escudos ($4,500), one of 4,000
meters costing about 90,000 escudos ($4,000), and one of 600 meters.
They were produced by Lupo Film (Lola.), of Oporto. About 235 one
reel films showing Portuguese scenes and events were produced.
During the year 1,059 films of a total of 1,163,268 meters were cen
sored and passed, only one film having been rejected. These films
were of various origins, as indicated in the following list: American,
545 films of 710,848 meters; French, 150 films of 134,286 meters;
German, 90 films of 198,455 meters; Portuguese, 239 films of 61,845
meters; all others, 35 films of 57,833 meters.
The outlook for motion pictures remains good, and it is understood
that attendance in 1929 was greater than during the preceding year.
American films are still in good demand, but the competition of
German films is making itself felt. The few Russian films imported
have made a very favorable impression, and their number is expected
to increase. The language rule of the censorship hampers the intro
duction of such films, as some Russian phrases and terms can not be
adequately translated into Portuguese.
It is rumored that one theater will experiment with sound films
toward the end of 1930. However, this will be confined to musical
films, as dialogue is considered impossible. If this theater does in
stall sound equipment, it will use that of European manufacture, as
American equipment is considered too expensive. It is explained that
cinema owners can hardly afford a large investment in equipment as
long as the custom of opening the cinemas only from 9 p.m. to mid
night prevails. With two matinées, the total exhibitions per week
are only nine, whereas the average in an American city is over 30.
Furthermoro, the public will not pay big prices for tickets. The
maximum price for a single seat in the best cinema in Lisbon is equiva
-
62
lent to $0.44 United States currency, and the average about $0.30.
These prices include the tax which works out at from 12 to 15 per
cent of gross receipts for the better cinemas and more for the cheaper
houses.
YUGOSLAVIA
By Stewart E. McMillin, American Consul, Belgrade
The following cinemas in Yugoslavia were equipped with sound

apparatus during 1929:
Belgrade:
Kolarac------------------------------ American.
Luxor----------------- - - - - - - - - - - - - - DO.
Kolosseum - - - - - - - - - - - - - - - - ---- --- - Do.
Kassina------------------------------ Do.
Korso--------------------------. - - Klangfilm.
Zagreb:
Olympia--------------------------- American.
Musical --- - - - - - - - - - - - - - - - - - - - - - - Homon (French).
Croatia------------------------------ American.
Edison-Palace --- - --- - - - - - - - - - - - Do.
Europa-Palace - - - - - - - - - - - - - - - - - - - - - - - - Do.
Sarajevo: Apolo -- - - - - - - - - - - - - - - - - - - - - - - - - Do.
Ljubljana: Matica - - - - - - - - - - - - - - - - - - - - - - - Not known.
Novi Sad: Apolo. -- - - - - - - - - - - - - - - - - - - . American.
Subotica: IVorzo - - - - - - - - - - - - - - - - - - - - - - - - Not known.
There is no important commercial production of films in Yugoslavia.

Only notable events, such as great disasters, activities of the King and
his troops, various festivities, and the like, are filmed. Neither large
feature films nor even ordinary 5-reel films are produced. The princi
pal distributors have laboratories where Serbian (Cyrillic characters)
and Croatian (Latin characters) texts are inserted for films imported.
It is difficult to state how many feature films were censored during
1929. It is believed that 60 to 65 per cent of them were American.
Information regarding the proportion of other countries is not avail
able, but in the Belgrade consular district it is approximately 35 per
cent. It is not known how many pictures censored were made with
sound, but thus far only one picture which may be called truly a sound
picture has been shown in Belgrade. That picture, of American
origin, appeared early in January, 1930. There have been other so
called sound pictures, also American for the most part, which really
consisted of bits of dialogue here and there and occasionally a song
or orchestra music. All these films had a silent version in Serbian.
The year 1929 was a very bad one for the film trade, but increased
interest was noted toward the end of the year when sound film was
introduced, first in Zagreb then in Belgrade. The American sound
films are now the only ones on the market, and American prestige in
this regard has greatly increased by the fact that America was the first
to introduce sound films into the kingdom. With the exception of
one Homon and one Klangfilm apparatus, all sound apparatus has
been of American origin.
It is now generally recognized in Belgrade that no cinema can long
continue its business unless equipped with sound apparatus. The
public is enthusiastic, although, as indicated above, most of the
sound pictures introduced have merely had bits of dialogue and music
and would probably have been total failures in the United States.
In many cases the synchronization was poor, yet the small local
theaters were crowded, as everyone wished to hear a sound film.
63
Cinemas have been crowded to such extent that owners seem not to
regret having invested considerable sums of money in the purchase
and installation of sound apparatus. They appear to be optimistic
regarding the future of the sound film and appear to believe that by
º of 1931 silent films will have completely disappeared in Bel
grade.
There appears to be no movement toward the equipment of thea
ters with sound apparatus outside Belgrade and Zagreb, as the small
theaters in the villages and other towns do not possess sufficient funds
to purchase such equipment. Naturally, there is no production of
sound pictures in the country and will not be for some time.
No studio expansions are contemplated.
There is no legislation contemplated of a nature inimical to the
interests of American films.
GREECE
By Ralph B. Curren, Assistant Commercial Attaché, Athens
With the exception of one new 450-seat theater constructed in

Saloniki, no new cinema theaters were built or converted from other
places of amusement during 1929. In the city of Athens not only
were no new theaters constructed, but a first-run 800-seat theater,
the Mondial, was converted from a cinema house to a musical comedy
and revue theater.
In October, 1929, two of the first-run theaters in Athens, Atticon,
and Ideal, completed their installations for sound-reproducing equip
ment. These were the first cinema theaters in Greece to be wired
for the showing of sound films. The equipment used in these thea
ters is of American make. The seating capacity of Atticon is about
1,500 and that of Ideal about 1,100. In addition, the Pantheon, a
first-run 750-seat theater in Athens, installed later in the year a
Syntok (British) sound-reproducing apparatus, but the equipment
has not worked satisfactorily, and the distributors of sound films
have refused to allow the theater to show their films.
In Piraeus only one theater, High Life, was wired toward the end
of 1929. The equipment installed is of American make. This theater
has an estimated seating capacity of about 600.
The only other Greek city in which sound equipment was installed
during 1929 is Saloniki. The installations in Saloniki at present
consist of the following: Pathé, seating 900, American equipment;
Dionyssia, seating 850; and Palace, seating 850, both Tobis-Klang
(German.)
During 1929 only two films, Bora and Astero, were produced by
the Dag Film Co. of Athens. The latter was shown with consider
able success for two consecutive weeks in one of the first-run houses
in Athens and later throughout the entire country. Both films were
silent, as Greek producers have no facilities for producing sound
films. Although exact figures are not available, it is not believed
that these films cost more than $2,500 to $3,000 each to produce.
In addition, production was started on two other films during 1929,
Far from the World, by the Olympia Film Co., and The Apaches of
Athens, by the Dag Film Co. The first was completed early in 1930
and shown in Athens.
64
As can be seen, the Greek film-producing industry is still in its

infancy, and, judging from the little progress made in the last three
years, it will be a long time before it acquires sufficient importance
to command any public attention outside of Greece.
Trade statistics indicate that during the 1928–29 theatrical season,
from October, 1928, to May, 1929, 130 feature films and 80 serials
were exhibited in Athens. Inasmuch as all films are usually first
shown in Athens and then in the provincial cities, this figure may be
applied to the whole of Greece as well. All the serials were American,
but it is estimated that not more than 40, or about 30 per cent, of
the feature films were American, the balance being mostly of German
or French origin.
As there were no sound-reproducing installations in Greece during
the 1928–29 theatrical season, no sound films were exhibited in that
period. Between October and December, 1929, however, which
period falls into the 1929–30 season, about 10 feature sound films
were shown by the two Athens theaters which were wired for sound
films. Only one of these sound films was French, Le Quartier Latin;
the rest were all American.
The scarcity of good American silent feature films began to make
itself felt in 1929. This was one of the reasons why Greek theater
managers had to turn to European producers for filling their require
ments as long as they had no facilities for exhibiting sound films.
The installation of sound apparatus in the early part of the 1929–30
season, of course, changed the situation, and as the number of wired
theaters increases, the demand for American sound films is bound to
increase also. However, there are some serious obstacles to be over
come which may tend to retard the expansion of the use of sound
synchronized and especially of dialogue films in Greece.
One obstacle is the high initial cost of wiring a theater. There are,
of course, lower-priced equipments, but theater owners hesitate to
order and install these systems for fear of not being able to obtain
films from the local distributors of American sound films, who have
agreed among themselves not to allow films to be shown on any equip
ment except the best-known American systems until trials are made
and the apparatus in question proves to reproduce satisfactorily.
Owing to the heavy Government taxation, the cinema business is not
a very lucrative enterprise in Greece and, therefore, no matter how
moderately priced a sound installation may be, it will be beyond the
reach of the bulk of the provincial theaters for several years to come
and until general conditions improve.
There is also the difficulty of language. At the present time silent
films are shown with subtitles in Greek and French, but this principle
can not, obviously, be carried out with dialogue films. A striking
example of this is the fact that a talking film which was a tremendous
hit in the United States and other countries scored no great success
when exhibited in Athens, primarily because the bulk of the population
could not understand the words.
In spite of these diſſiculties, it seems to be the general opinion that
next year the majority of the theaters in Athens and several more
theaters in Piraeus and Saloniki will be wired for sound films, if only
for fear of not being able to secure satisfactory silent films. It is also
believed that in the course of 1930 at least one theater will be wired
at Volo and two at Patras.
65
A trial made in Athens with a more or less improvised Pathé

sound-reproducing apparatus in one of the so-called “popular.”
theaters (which run serial and Wild-West films) proved unusually
successful as far as both receipts and interest among the audience were
concerned, and for this reason it is not unlikely that during 1930 some
of the second and third class theaters may be wired for sound films.
It is difficult to say whether or not the sound film has thus far met
with success in Greece. The trade is divided in its opinion. It might
safely be stated that it is the sound rather than the dialogue film that
will eventually become more popular in Greece, as without requiring
any special knowledge of the language of the players it adds, by its
sound effects and musical accompaniment, a great deal of interest to
the film. As regards the installation of sound studios in Greece, there
is no such project in view for the time being.
RUMANIA
By Sproull Fouché, American Commercial Attaché, Bucharest
There were only four films exclusive of educational features pro

duced in Rumania during 1929. Their estimated average cost was
800,000 lei ($480) each.
There was only one coalition for joint production eſſected during
the year, which was between the Martin Berger Film Co., of Berlin
and the Rumanian Ministry of Foreign Affairs. The film in question
is a feature known as Sturmflut der Liebe (The Torrent of Love) and
is based on a celebrated Rumanian novel. The actors were German
and Rumanian, and the Ministry of Foreign Affairs financed the
production to the extent of 50 per cent for propaganda purposes.
There were four new cinemas constructed during the year; one in
each, Czernowitz, Galatz, Jassy, and Ramnicul-Walcea, while six
cinemas were renovated and enlarged in the Provinces. No new
cinemas or conversions into cinemas were eſſected in Bucharest during
the year. The total increased seating capacity is 5,000 seats.
The installation of sound equipment in the Trianon theater in
Bucharest in October, resulting in the introduction of American
talking films to the Rumanian public, has been such a success that a
widespread interest in this type of equipment has been manifested
by exhibitors all over the country.
Two additional Bucharest houses, the Regal and Capitol, have
installed synchronized-disk equipment, the former being a Gaumont
Chronophone and the latter a Bio-Multiphone-Standard. In the
city of Galatz the Odeon Theater has just completed the installation
of an American equipment. The Trianon Theater in Galatz is also
considering the use of sound equipment.
According to the estimate of a leading authority on Rumanian
cinema matters, 300 American features were brought into the market
during 1929. No statistics showing the participation in the film
market by countries is available, but according to the indication of a
member of the commission of film censors, 150 films were German,
15 Austrian, and a total of 35 films were of French, Italian, Danish,
Russian, and English origin. As mentioned above, America is by
far the largest supplier.
No special laws inimical to the interests of the American industry
were passed during the year, but increased taxation on amusements
---
66
and a special censor tax of 2 lei ($0.012) per meter on film censored
are causing dissatisfaction in the film trade.
Although there are at present only five theaters in the entire
country with sound-projection equipment, it is estimated that approxi
mately 50 or 60 additional installations will be made in the first six
months of 1930.
Silent films with orchestra synchronization have not proved
popular, and in view of their relatively high rental rates, it is unlikely
that distributors will undertake the further importation of them.
Films meeting with the greatest popular favor are those with sing
ing and dancing. There has been no objection to English dialogue in
pictures of this type, in spite of the fact that it is not understood by
perhaps 98 per cent of the audiences. Where the dialogue has a
vital bearing on the plot it is translated into Rumanian and run as a
subtitle. However, distributors are considering the importation of
sound-film musical features, so that extensive dialogue can be cut
out entirely without losing musical continuity.
TURECEY
By John T. Harding, Assistant Trade Commissioner, Istanbul
During 1929 four new motion-picture theaters were built in Turkey.

Three of these, modern in every respect, are located in the capital,
Angora, where until recently films were being shown in improvised
buildings. These new houses were: Turk Ocagi, Angora, seating
capacity 500; Evkaſ, Angora, seating capacity 650; Turk, Angora,
seating capacity 1,350; and Samsun, Samsun, seating capacity 500.
Except perhaps in a few small interior towns, on which data are not
available, no reconstruction was undertaken during 1929.
The building and reconstruction program for 1930 calls for a new
theatre to be named the Capitol, with 1,000 seats, and the improve
ment and enlargement of the existing Luxemburg from 450 to 1,800
seats. Both houses are in Istanbul.
Two cinemas, both in Istanbul, were equipped with sound apparatus
during the latter part of the year, and both made their initial showing
of sound films in October. They have American sound apparatus.
They were the Opera, with a seating capacity of 1,250, and the
Alhambra with a seating capacity of 750. Only synchronized films
are shown.
Plans for 1930 indicate that the following theaters will be equipped
with sound apparatus.
TURKISH THEATERs To BE WIRED For Sou ND FILMS IN 1930
. . . . . . .”
N:iii:e City* : * . .
I Make - Seating
capacity
- - - -i - - -- - --- - -- - --
Alhainbra. ---------------------- | Sinyrnu- -----------------

Melek --- - - - - - - - - - - - - - - - - - - - - - - - | Istanbul ----
. i
.American 650
1,000
Kuluſ).------ ------. ---------- Angora - - - - - - - - - 600
-Alkazer------------------------ | Istanbul -- . . . . . . ----- 650
Majik - - - - - - - . . . - -ºlo-. . . ---...--
- - - 1,250
Capitol--- - - - - - - - .----. --- lo 1,000
Luxemburg ---------------------- ---- 10...------. . . 1,800
Turk ()cagi. ----| Angora 500
Tur - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - do.. 1,350
Sakarya--...---------------------- Sinyrna. - - - - - - - - - - - - - 450
1-ale------------------------- ---|--- do---------------------------'l 450
67
Turkey is not a film-producing country; until 1929 only eight

films had been produced. There are no studios, and interior scenes
are filmed in “dressed-up” locations. During 1929 two silent
films, the Ankara Postasi (Angora Mail) and the Kacakcilar (The
Smugglers), were undertaken by Ipekdji Bros., one of the coun
try's important exhibitors and distributors. The first was com
pleted and shown in Istanbul, Angora, and Smyrna. Work on
the other was suspended after a fatal accident occurred in one of
the scenes. If both films had been completed, the average cost
of the two would have been about 10,000 pounds ($4,800) each.
During the year 222 feature films were released, 12 of them sound
films. All of the sound films were of American production. Of
the silent films, 80 per cent were American, 11 per cent German,
and 8 per cent French. Only two sound films were imported with a
silent version.
In spite of the fact that motion pictures offer the only kind of
entertainment and recreation available in Turkey to the general
public, except, of course, in a few of the larger cities, such as Istan
bul, Angora, and Smyrna, the general condition of the picture busi
ness during 1929 was bad as compared to previous years. The
poor attendance was a reflection, no doubt, of the unfavorable
conditions which prevailed in all lines of business and the lower
purchasing power of the public. In general, however, the exhibitors
did not lose money, but their profits were too small to free them
from worry. In the case of Istanbul the situation of the silent
houses became worse toward the end of the year, following the
equipping of two theaters for sound reproduction. It is estimated
that the attendance of the silent houses fell off 30 to 40 per cent,
while the two wired houses drew larger crowds and increased their
pr1CeS.
American film prestige maintained itself during the year and
even rose to a higher level. There were more American films im
ported during the year than in 1928, and German, French, and
Italian films lost out in this competition. It is believed, how
ever, that with the advent of the “talkie,” 1930 will see this popu
larity on the wane. As is the case in most of the near eastern coun
tries, French is the foreign language with which more of the popu
lation is conversant. Therefore, greater enjoyment is felt by a
greater number of people from a French “talkie” than one in English
or German.
The consensus among distributors is that American silent films will
continue to be as popular as in previous years and that sound films
without dialogue will successfully compete with similar films made
in European countries, but that the appeal of the French “talkie” and
musical films will be greater than the same class of American films.
At the present time, there is no indication of the adoption of any
legislation in connection with the motion-picture industry. The
installation of sound-film reproduction equipment on a lease basis
offers certain difficulties. This was undertaken by an American
company, which found it received the status of a foreign company
doing business in Turkey and is accordingly obliged to register,
maintain an office, and keep books there. At present it is impossible
to foretell on what basis the income from this equipment will be taxed
and whether depreciation in the value of actually installed equipment
will be allowed by the fiscal authorities.
68
RUSSIA
By George R. Canty, American Trade Commissioner, Paris
Though it is diſficult to judge the actual state of the motion-picture

industry in Soviet Russia, it would appear from reports of the German
trade press, which usually is the best source of information on the
subject, that business there is in a state of stagnation. The sound
film can not alone be held responsible for that condition. Public
demand being rigorously controlled by the Government, the Soviet
Union could well afford to ignore new developments altogether and
continue to use the silent film. Exports, on the other hand, have
certainly been badly affected by the advent of the sound film, which
excludes the silent Soviet product from lucrative foreign play dates.
Prospects for the Soviet film on foreign markets, therefore, seem to be
none too bright, -
As the Soviet film is reported to be becoming more and more scarce

on the market (only 98 films are reported to have been produced dur
ing 1929), it is diſlicult to judge of what is going on within Russia,
particularly what progress has been made on film construction and
development plans. Another indication that film activity in Russia
is slack is the fact that several leading directors are at present travel
ing abroad. There is no doubt that Soviet film men have also been
considering the sound and talking film, and a Russian process is said
to be in a stage of development.
It is authoritatively reported that Soviet films fail to yield good
profits in Russia, and that whatever exhibition profits have been
recorded are entirely due to the exploitation of foreign films. Ameri
can films are reported to be purchased from time to time by the
Soviet film interests at very low prices. Reliable film merchants
claim that the possibilities of profitable distribution of American
features in Soviet Russia would be great with efficient handling and the
absence of governmental interference.
APPENDIX
AUSTRIA
FILM CONTINGENT REGULATIONS
CoNTINGENT QUoTA, 1920
By ſqccree No. 107.384-9/L, dated December 24, 1929; the Austrian Federal
Ministry of Commerce and Transportation placed the contingent quota at
1 to 22 (21 for every approved film produced in Austria for which less than three
copies have been made in an Austrian film-reproducing studio) for 1929. The
provisional permits issued on the strength of the increased contingent quota
are valid until March 31, 1930.
CONTINGENT REGULATIONS FOR 1930
In accordance with the above-mentioned decree, the contingent regulations for

1929 apply also to the month of January, 1930, except that the contingent quota
for approved films produced in Austria is fixed at 1 to 20 (19).
APPLICATION OF THE FILM CONTINGENT
I. (1) Pictures for cinematographic display (exposed films falling under

Tariff No. 307a-1) destined for public display can be imported into Austria only
on the strength of a special permit.
(2) Such permits are issued by the film bureau of the Vienna Chamber of
Commerce, Trade and Industry, upon instructions from the Federal Ministry
of Commerce and Transportation, and, as a rule, these permits must be secured
at the time the film is intended for public display; the permit is granted after
hearing the opinion of a committee of experts (Filimbeirat) that studies the
question of granting admission into Austria from economic viewpoints.
(3) The present regulations apply equally to sound films; not however, to
cultural and cducational films. The term “sound film,” in the sense of these
regulations, applies to films whose accompanying music, songs, speeches, or
other noises are rolled off synchronously by a mechanical device, either from a
film strip or a gramophone record. So-called “record” sound films are classified
as such, in the sense of these regulations, only in cases where the records have
been specially prepared for the film in question. A set of selected, normal
gramophonc records, serving an accompaniment of a film, does not count as
sound film accompaniment. Cultural films deal with sections of civilization in
one or more regions in notion pictures, with or without text, and mostly with
musical accompaniment. Motion pictures may be classified as cultural films,
even if persons appear in it, providing that the actions performed by these
persons merely serve the purpose of illustrating an occupation. Educational
films differ from cultural films by the uniformity of the subject treated, the
absence of accompanying music, and the prominence given to the accompanying
text.
II. The Federal Ministry of Commerce and Transportation determines, from
time to time, the number of foreign films to be imported for every film produced
locally.
III. (1) The committee of experts Filmbeirat) is composed of 1 representative
from the Federal Ministry of Commerce and Transportation, 2 representatives
of the Austrian Film Board, 2 of the Vienna Chamber of Commerce, 2 of the
Chamber of Labor in Vienna, and of a number of honorary representatives,
namely, 3 representing the interests of the film producers, 4 of the film distribu
tors, 5 of the motion-picture theator owners, and 5 of film workers. A sub
stitute must be appointed for each one of these representatives.
(2) The members of the committee of experts are appointed by the Minister
of Commerce and Transportation. The representative of the film workers
is nominated by the Vienna Chamber of Labor. The other representatives
of interested parties are nominated either by the Vienna Chamber of Commerce
or by their respective organizations. The Minister of Commerce and Trans
portation is authorized at any time to request the resignation of a member.
(69;
70
(3) The representative of the Ministry of Commerce acts as chairman of

the committee or else he may appoint any one member to take his place. The
presence of at least six members of the committee constitutes a quorum, and
judgment is passed by majority. In cases of doubt decision rests with the
chairman. The business and legal agenda of the committee is handled by the
Vienna Chamber of Commerce, Trade and Industry.
(4) At special request representatives of the provincial governments may
be invited to attend the sessions of the committee, but they are not permitted a
a vote. Likewise, the secretaries of the trade organizations in the film industry
may be admitted to the sessions, but these too have no vote.
IV. Approval for admission into Austria of foreign films comprises the following
Inquiries:
Examination of locally produced films destined to serve as a basis for fixing the
import contingent, so-called “Stammfilme.” For this purpose only normal
feature films—that is, program filling films—come into consideration. These
are examined by the committee along certain lines and may be described by
them as “valid for a contingent.” Missing or unlikely statements concerning
production costs may be replaced by estimates made by the committee. Under
no circumstances will the activities of the committee be in the nature of police
censorship, formerly practiced.
Inquiry as to whether or not a film shall be classified as a domestic production.
Inquiry as to classification of a film as short comedy, grotesque film, trick
film, news item, and so forth.
Decision, in questiónable cases, whether a film shall be classified as cultural or
educational.
The committee may appoint subcommittees from its circle to study individual
questions, and it may consider the decisions reached as final if they have been
adopted with a three-quarter majority. -
W. (1) Permits granted for a film simultaneously apply to all copies, barring
possible special regulations. If a film appears in two or more program filling
parts, each part will be permitted to count as one film.
(2) The producer or purchaser of a domestically produced and approved film
(see Point IV, section 1) is granted preliminary permits (Vormerkscheine) for the
number of import licenses decided on. These preliminary permits can be passed
on to film distributors and form the basis for the issue of import licenses. Locally
produced films can only serve once for the above purpose.
(3) Import licenses are made out in the name of the individual authorized to
import films and for one particular film and are not transferable. Preliminary
permits and import licenses are valid for one year from the date on which the
domestic film has been submitted to the committee for approval in the above
SellSC.
VI. (1) The Federal Ministry of Commerce and Transportation may decide
to what extent preliminary permits may be granted in advance of the investiga
tions to be made in accordance with section 1 of Point IV. Applications for
advance permits must be accompanied by a report prepared by the film bureau
of the Vienna Chamber of Commerce,
(2) Films submitted for recognition as domestic products, but declined by the
committee, may be granted free import in consideration of the domestic work
contained therein. In such a case the producer of a foreign film of this kind will
be allocated an import permit without reference to domestic production (Point II).
(3) Comedies, grotesque films, trick films, news items, etc., not exceeding 700
meters in length including all titles, are entitled to import permits, outside of the
contingent, in proportion to the number of shorts normally required to supplement
programs.
GERMANY
DECREE CONCERNING THE IMPORT OF EXPOSED MOTION-PICTURE FILMS
Since it is not definitely known whether on account of the international agree

ment for the abolition of import and export restrictions of November 8, 1927, the
import regulation for films will be lifted as of June 30, 1930, I am provisionally
issuing the following regulations:
On the basis of my regulations concerning the import of exposed motion-picture
films dated December 11, 1928, 11 A/9 Nr. 17624/28, I am setting a fixed contin
gent of 210 films for the contingent year 1930–31; that is, the period between
July 1, 1930, and June 30, 1931.
Of this number 160 import permits are to be distributed to the renters entitled
to them. The remaining 50 permits remain at my disposal and according to my
71
regulation of February 27, 1929, II 9a, Nr. 3480, 29, will be distributed to those
German firms who are able to prove that they have sold German films abroad and
that they have exhibited such films publicly abroad.
On the basis of the above regulation, I call upon all renting firms who may claim
contingent rights for the contingent year 1930–31 to send in their applications
with statements regarding the German films carrying contingent rights which
have been released by them before March 1, 1930, to the Aussenhandelsausschuss
Filmc, Dr. Kuhnert, Berlin SW 48, Friedrichstrasse 250.
In due time I will call upon the firms who have claims for obtaining export con
tingent permits to send in their claim.
I reserve the right to issue special regulations regarding the import of sound and
talking films at any time.
HUN GARY
DECREE NO. 201,395/1929 B. M. VII OF THE R. H. MINISTER OF THE INTERIOR
I decree herewith, in accord with the R. H. Minister of Commerce in conform

ity with the commission received in paragraph 6 of ministerial decree No. 2,900'
1929 M. E. as it refers to the execution of said decree, the following:
(1) The supervising board may grant a delay of payment of motion picture
industrial fees up to June 1, 1930, charging 8 per cent interest per annum for
films unclaimed up to the present if application for censoring of same was filed
before August 1, 1929, with the National Board of Motion Picture Review,
provided that the firms in question give a note in an amount sufficient as a security
to cover the fees payable for their films.
(2) Firms which are able to prove in a satisfactory manner that certain films
of theirs were bought before August 1, 1929, and that a deposit for same was
made at the time of purchase but up to the present, owing to technical causes,
could not present same for censorship to the National Board of Motion Picture
Review, may get the license for their film, exceptionally, based on the decisions
of the ministerial decree No. 11,300/1927 M. E.
Applications for above said preferential treatment inust be sent to me for
decision not later than February 15, 1930, with the opinion of the National
Hungarian Motion Picture Industrial Association inclosed.
Concerning the ſees payable, the special treatment as set forth in the first
paragraph of this decree may also be applied.
(3) The film fund issues to the producer 20 import licenses for every domesti
cally manufactured sound short not longer than 400 meters. For every one of
these import licenses one imported sound short may be distributed.
As a transitionary measure, up to the time when the producing of the so-called
sound shorts will start in Hungary but not later than June 1, 1930, five imported
so-called sound shorts not longer than 400 meters may be distributed for the Sur
rendering of one import license issued for the so-called normal motion-picture film.
O

REGEIVED ILLIAM L. COOPER, Director
JUN 12 1930
9. S. U. LIBRARY
MOTIVE EQUIPMENT
AND CONSTRUCTION PREFERENCES
IN FOREIGN COUNTRIES
AF
05
SS
655 UNITED STATES
GOVERNMENT Printing OFFICE
WASHINGTON : 1930
F
°r sale by the Superintendent of Documents, Washington, D. C. - - - Price 10 cents
FOREWORD
The customer preferences as to basic construction and equipment

of automobiles vary greatly among the markets of the world. In
most tropical countries open cars are preferred, because they are
considered cooler, and leather upholstery is required because of the
rapid deterioration of fabric. Hilly countries, and those without
extensive improved roads, require high road clearance and, in many
instances, special gear ratios. Wood wheels do not withstand the
heat and dampness of the interior of Africa. Bright colors are
becoming more and more popular in most markets, but green is
regarded as a sacred color in Arabia and Persia, and dark red or
maroon is reserved for the imperial family in Japan; therefore, these
colors can not be used on automobiles in those markets.
Many changes have taken place in these preferences since the
publication of Trade Information Bulletin No. 431, Automotive
Equipment and Construction Preferences in Foreign Countries, and
this bulletin is intended to present those changes and to replace the
former publication. It is based on reports from oversea representa
tives of the Departments of State and Commerce, and was compiled
in the Automotive Division of the Bureau of Foreign and Domestic
Commerce.
That division has more detailed information on the countries
covered in this report, and also material on countries from which
data were received after this bulletin had gone to press. The division
invites specific inquiries from American exporters.
MAY, 1930.
(II)
AUTOMOTIVE EQUIPMENT AND CONSTRUCTION
PREFERENCES IN FOREIGN COUNTRIES
Compiled by George F. Viault, Automotive Division
American motor vehicles are well and favorably known throughout

the world, but if they are to maintain their present position increased
attention must be given to foreign preferences in matters of con
struction, equipment, and color. Exporters of American automobiles
are looking to the foreign field to absorb a substantial part of produc
tion, and they should not overlook the fact that foreign manufacturers
are doing everything in their power to supply their home markets as
well as to get a larger share of export business. To stimulate the
greatest possible demand, it necessarily follows that local color,
trimming, upholstery, and design preferences should be carefully
considered.
American manufacturers have catered to many local preferences
and have increased their sales accordingly. In a few cases such
preferences have been changed or influenced largely by an apprecia
tion of the advantages of standard products, but, on the whole,
successful exporters are following the foreign dealers' specifications
as closely as possible.
In compiling the material for this bulletin, tables were prepared
showing the rule of the road and drive preferences throughout the
world. Other tables show construction and equipment preferences.
Some of the preferences mentioned in this report are not basic, and
undoubtedly the present demands will change as the markets expand.
The purpose of this publication is to show the trends that have
manifested themselves, and in no way is it to be presumed that
equipment and accessories for which no demand has yet developed
are not salable.
Where the rule of the road is to the left, the preference is almost
always for right-hand drive cars. In many countries the importation
of left-hand drive cars is expressly prohibited. -
The growing use of the closed car has become manifest throughout
the world. The open car is still popular in many countries having a
warm, even temperature, but the closed car continues to gain in
popularity. In primitive countries, the open car is usually pre
ferred because it can be loaded with freight and passengers with
greater ease than a closed car. Bright colors are particularly favored,
and the plated trimmings on present-day models make them more
attractive. Battery ignition is in almost universal demand. There
are a few markets, however, where magneto ignition is still in favor.
Magnetos are popular where there is a moist tropical climate, in
countries where the servicing of batteries has not reached a well
developed stage, and on many islands where the trips are so short
that a battery does not easily recharge.
(1)
2
The road clearance of American cars is satisfactory in most foreign

markets. However, the trend toward low clearance is not welcomed
in hilly countries, or in countries where road construction is not far
advanced.
Considerable attention should be given to those countries in which
the metric system is in use. It is important in such markets to have
the speedometer register in kilometers. In the case of gasoline
gages, considerable difficulties have arisen; it has been found most
satisfactory to equip cars with gages showing #4, #4, #4, and full in
those markets where the metric system is in use when there is diffi
culty in equipping vehicles with liter gages.
The preference in regard to wheels has varied greatly in the past
few years. On passenger cars, all types are used, but wood and wire
wheels are apparently favored. In the case of trucks, wood and
steel spokes lead in popularity, with a growing demand for disk
wheels on heavy models. In the tables following the types have been
arranged in the order of their popularity.
Balloon tires are universally in demand throughout the world.
The preference is so well established and standardized that little
discussion on the subject will be given in the individual market
preference surveys. The balloon tire is also popular on busses, and
the use of solid tires on trucks is constantly decreasing. Many
European countries prohibit the use of solid tires on city streets.
Standard equipment is satisfactory in most foreign countries.
This is especially so in Europe, where the regular equipment on
stock models usually satisfies the wants of the purchaser. In a large
number of countries and among particular groups there is a demand
for smart and showy accessories.
Regulations prohibiting the use of spotlights have spread to a con
siderable extent in cities throughout the world, but such lights are
generally popular in poorly lighted rural districts.
A special gear ratio is required in some countries, but standard
American cars perform satisfactorily in most cases. Where no mention
is made of gear ratio in the reports that follow, it will be understood
that standard equipment is entirely satisfactory.
NORTH AMERICA
Automotive preferences in North America are largely those of the

United States, with slight variations due to climatic conditions.
Most of the countries in this area have no definite preferences that
American manufacturers do not supply, and there is almost no Euro
pean competition. As a result, the demand is largely for American
stock models.
Closed cars have made considerable progress in recent years, and
are most popular in Canada, Mexico, Costa Rica, and other markets.
The open car has retained a considerable amount of its popularity
in the West Indies generally, except in Cuba, where private owners
prefer closed models in order to distinguish them from public vehicles. .
The color of the car is an important item; strict attention should be
given this matter.
Fabric upholstery is not liked in the West Indies or in Central
America. The hot moist weather is some of the countries in this
area makes the use of leather and substitutes more acceptable,
3
because of its coolness and durability. This is particularly true with

regard to open cars. Fabric upholstery is usually acceptable in
closed cars and is preferred by purchasers of medium and high price
CarS.
Accessories are exceedingly popular in Mexico, Central America

and the West Indies, because of the showy appearance given the
car. Chromium and other modern plating work is greatly admired,
*itions.
some kinds deteriorate quickly because of weather con
North AMERICAN DRIVE PREFERENCES AND RULE of THE ROAD
Country Rule of road Drive preference
|
Bahama Islands- - Right-hand.
Barbado D0.
British I | Left-hand
anada---------- T)0.
Costa Rica IDO.
uracao------------ I)0.
Dominican Republic- Do.
Dutch West Indies--- T)0.
D0.
ID0.
I)0.
Do.
D0.
(1).
Left-hand.
Do.
Do.
ID0.
DO.
- Do.
- | D0.
Trinidad and Tobago Right-hand.
! Generally left-hand, but dealers should specify.

--
W-C80
-
s--do-----
Wood,
||
--
wire.
and
disk
some
catnledood,
cent
per a|--
-ols- -esd- p.-o-k-e-
-
-
disk.
and
wood,
spoke,
Steel
wire
disk,
Wood,
-
Trucks
Passenger
| cars
Passenger
Truckst
-
W-
spoke.
steel
or
preood
No ference- spoke.
steel
or
Wood
--
Wire,
|
disk.
and
wood, ñº.
spoke.
steel
and
Disk
-----.
incr
with
Closed,
-pref--
No
-|
.
-- erence-
Salvador.
-
-
disk.
or
spoke
Steel
aCNierawlosed
p2
W5
.
-
-- -sf-ond
u-en-nd-lg-aen-.rd-
Nr-----do-
p|Mae-
-6rfte----
.
open--
cent
per inrioequ0nec-e-.-
-
spoke.
Steel
wire-
and
Wood spoke.
Steel
-,
wire-
Wood,
increasing
types
small
closed,
cent
per
90
-
Mexico.--- spoke.
Steel
-|
Rico-
pPorto
.No
W.
6ord-ef- e-r]-5e-n.c-e
-
open-
cent
per
artil ery.
AWire,
-
wood
rtil ery.
-
---.
closed...
to
tendency
open,
cent
per
50
-----|
Islands...
Bahama
Wood.
Biagth-e-ry- - -|-
-
HBattery
Wood WNi7
-
wire
and
disk,
Wood,
ocood.
5
cent
per
75
p.#
asraegnurag-er- -
-verage-
[.
popular.
becoming
sedan
open,
cent
per
A60
-
.- -|,
-Wire
Disk.
Barbados-
- l)isk.
|
Ignition
Wheels-
--
W-
disk
and
wood,
opire,
cent
per
75en- - . .-
----------
CoRNESFTERUECNTCIEOSN
BASIC
AMERICAN
PNorth
touring-
open
cent
per
75
-
Wire-
Jamaica---
-
clearance
Road
P|
Country
types
as enger-car
-
(
-
---
cars
|
:
—-
!
6(10- - -5
.
models
touring
open
cent
per -----
5-pas enger
cent
per
85
--
sedans
Rica-
("osta
5-pas enger
open
cent
per
85
-
use
private
for
Closed
-
5-pas enger
-
touring--
| |
Republic
I)ominican
uba
PREFERENCES
FINISH
AND
EQUIPMENT
AMERICAN
North
|Tires
Speedometer
gauge
Gasoline
finish
Body
equipment
Accessory
Country Passenger
Trucks
Cars
|
- ----- |
Solid.
--
Balloon.
------------
Miles.-.
----
States.
United
trim-
rust-resisting
Colors,
orna-
radiator
tire,
spare
Bumpers,
Islands---------
Bahama
mings.
|_|Inents. -spare
tire Do.
....
-----.
--'--...-do---.
I--------do.
--------
lating----
Pinirror,
-rear-view
Bumpers,
-|
Barbados.-------- -
colors.
--
--Dark
... Pneumatic.
|B-.'ritish
equipment----.
Usual
..d..--
---
Qanada. ..o..
-
-
-
-
N --
Kilometers
o
preference
--.do----
O.
.mirror..."
.B rear-view
tire,
spare umpers,
Costa
.Rica------
.Full
.---
--Pand solid.
Pneumatic
equipment
... do
...
i.-
States.
lating....
United
-Cuba
--.--
B-P
.-,“-mostlo
-----
... neumatic.
do----
--------
popular
rown
equipment
Standard
Republic
Dominican
..
colors
Light
shock
with
F I).o.
o
do..
...
..-dabsorbers.
equipment
- ull
i(Huatemala-
-
-.N
dand
green
blue,
dark
Brown,
mirror o
o.--
preference-.
rear-view
tire,
spare
Bumpers,
-l)0.
...Haiti-----
solid.
'P
colors
DAll neumatic
Kilometers.......
..--with
plat- do...
istinctive
accessories
...and
...'
Honduras.
i
i'i !ng.
..or
-- -----
Pneumatic.
Miles.
States
United
...
.-do----...-
---------...----
-------...
U
-- sual
.. -...-
Jamaica--------- .
British.
-
---
-K
or ilometers
.IDo.
Metric
blue--
navy
Black
V
few ery
-Martinique.
-
-
-
- solid.
and
Pneumatic
.
..do
do
plating
with
colors,
All
equipment
Mexico -
Pneuinatic,
Miles
British
styles
atest
-L.Standard
Newfoundland.
-
-
-
-
I)0.
Kilometers
States
l’nited
black,
green,
blue,
º ll
.equipment
ANicaragua.
-
-
Iºlating.
-
|
Msolid.
and
-P neumatic
...
do
kilolileters
oriles
-Mo--
d inimum
plating.
.nonrust
("olors,
|Rico.-
Porto
-
-
-
-
-----
ileuinatic. -
.P
-do
do
Full
equipment...
No
.'preference
Salvador.
-
6
BAHAMA ISLANDS
Leo J. Callahan, American Vice Consul, Nassau
There has been a growing preference in the Bahama Islands for

closed models, especially during the rainy season. Colored vehicles
with plated trimmings are preferred. The trimmings should be rust
proof. Genuine and imitation leather upholstery gives better service
and is much cooler in the tropical climate.
BARBADOS
William W. Brunswick, American Consul, Bridgetown
All cars sold in Barbados have bumpers, spare tire, and rear-view
mirrors. A small proportion of cars have spot lights, but there is
practically no demand for them. The cars all have plated trimmings,
and the low and medium price American cars have genuine or imita
tion leather upholstery.
About 60 per cent of the cars in use are open, but the present tend
ency is toward sedans. The 5-passenger vehicles are most popular.
Wire wheels are used to a considerable extent on passenger cars, and
some have disk wheels. Many trucks are equipped with disk wheels.
CANADA
A. H. Thiemann, Assistant Trade Commissioner, Ottawa
There does not appear to be any important differences between

average American preferences and Canadian preferences. Perhaps
the most outstanding preference is for the British gasoline gage to
measure imperial gallons. Bumpers, spare tire, rear-view mirror, and
windshield wiper are the usual accessories.
Dark colors predominate, but many new cars have brilliant hues.
Cloth upholstery of sober tone and plated trimmings are popular.
Approximately 80 per cent of all cars are closed and 85 per cent are
4 or 5-passenger vehicles.
Practically all new cars are equipped with balloon tires, and trucks
with pneumatic tires. Artillery wheels predominate in both passenger
cars and trucks. In the case of passenger cars, wire and disk wheels
are also used to some extent. There is some demand for disk and steel
spoke wheels on trucks.
- COSTA RICA
R. W. Unckles, American Vice Consul, San Jose
Ninety per cent of the passenger cars now being imported into
Costa Rica are closed 5-passenger vehicles. Leather upholstery to
match the color of the car is generally preferred. Automobiles should
have a high road clearance because of the ruts, rocks, and other ob
structions encountered on most of the roads of the country. It is
customary for cars to come equipped with a special gear ratio to
provide extra pulling power, because of the generally steep grades.
CUBA
Edward D. McLaughlin, Assistant Trade Commissioner, Habana
There is no Cuban preference in body colors. Leather upholstery

is the most popular. Trimmings in use are those ordinarily in vogue
in the United States, with the exception that the cowl lights mounted
on the hood are indispensable. They are classed as extra equipment
and so charged for by dealers.
7
About 50 per cent of the cars are open models, and this class of
vehicle is used largely for hire purposes. Private owners usually
prefer closed cars, if only to distinguish them from public vehicles.
Disk wheels are very popular on passenger cars. Some trucks have
steel wheels, but the majority have ordinary wood types.
DOMINICAN REPUBLIC
Reed Paige Clark, American Consul, Santo Domingo
Colored cars with leather or imitation-leather upholstery are pre

ferred in the Dominican Republic. Brown is in favor for all upholstery.
Eighty-five per cent of the cars are open models. High road clearance
is preferred, but the majority of the imported cars have low clearance
and are accepted in that condition. Wood and disk wheels are the
most popular on passenger cars. Steel-spoke, wood, and disk wheels
are popular on trucks.
GUADELOUPE AND MARTINIQUE
James E. Parks, American Vice Consul, Martinique
There are no local preferences in Guadeloupe and Martinique that

American manufacturers do not cater to. About 60 per cent of all
cars are open models. Dark colors are preferred. Ordinary American
road clearance is acceptable; the road clearance on French cars is
said to be too low.
GUATEM ALA
Merwin L. Bohan, American Cominercial Attaché, Guatemala City
There is a strong demand in Guatemala for shock absorbers, owing

to the poor condition of the streets and roads, and, for the same reason,
cars having a high road clearance are preferred. The majority of the
cars in operation are 5-passenger open models. Light colors are in
favor. Leather and imitation-leather upholstery is popular in the
open models, and mohair in the closed cars. The metric system is
in use, but gasoline is sold in United States gallons, and therefore
indicators showing gallons are acceptable. However, speedometers
should register in kilometers. HAITI
George D. LaMont, American Vice ('onsul, Port au Prince
Brown, dark blue, and green are the most popular body colors in
Haiti. Leather upholstery is most popular because of its coolness and
also because it is not so easily soiled. About 65 per cent of all cars
are open models, and the majority are 5-passenger touring cars.
High road clearance is preferred, owing to highway conditions and the
number of streams which must be ſorded on roads in the interior.
The country is extremely hilly, and although most cars in use have a
standard gear ratio, a lower ratio would be desirable.
HONI). URAS
I)avid J. D. Myers, American Consul, Tegucigalpa
Honduran buyers desire all accessory equipment possible. Fifty

per cent of the cars in use are black because none other are available,
but bright, attractive colors, especially green, with showy trimmings
are preferred. Cars are often sold on appearance and comfort.
112543—30—2
8
Genuine leather upholstery is in demand. Road clearance should be

high, at least 9% inches. There is no particular preference with regard
to wheels. Wood, wire, and disk wheels are almost equally popular
on passenger cars and trucks. There is some use of steel wheels on
heavy trucks.
NICARAGUA
Girvan Teall, American Vice Consul, Corinto
The average car purchaser in Nicaragua shows preference for a stock

American car which has an air of luxury expressed by bright colors and
trimmings and a generous display of accessories. Light blue, green,
and black are favorite colors. Leather upholstery is preferred.
Open cars with large seating capacity are the most popular.
JAMAICA
Josá de Olivares, American Consul, Kingston
About 70 per cent of the automobiles in use in Jamaica are 5

passenger touring cars. Light blue, maroon, and tan, with leather
upholstery to match, are popular. Spot lights are prohibited by law
and may be used for repair work only. Rear-view mirrors are com
pulsory. The British imperial gallon is the standard measure, but
the United States gallon indicator is acceptable.
MEXICO
Walter E. Aylor, Assistant Trade Commissioner, Mexico City
Mexican preferences with regard to color and equipment are similar

to those in the United States. Spot lights are prohibited in many
cities and rear-view mirrors are compulsory. About 80 per cent of
the cars have fabric upholstery, which is satisfactory except in the hot
sections of the country. Closed cars are the most popular. There
has been an increasing number of coupés and roadsters in use, parti
cularly for women who drive their own cars, multicar families, and
young men.
There is a considerable demand for trunk racks and trunks to match
the body finish. Theft-proof attachments are very popular, as petty
pilfering is a source of constant annoyance to motorists. Throughout
the greater part of the Republic special gear ratio is very necessary
because of the loss of power due to high altitudes and the consequent
rarity of atmosphere, and also on account of the heavy grades. A
metric speed indicator should be provided.
NEW FOUNDLAND
Avra M. Warren, American Consul, St. John's
Although the rule of the road in Newfoundland is to the left, there

are no requirements for right-hand drive, and the majority of car
owners prefer standard American and Canadian left-hand drive
automobiles. Closed cars are now the most popular. There is no
particular preference with regard to color or upholstery. Auto
mobiles should be equipped with a gasoline gage registering imperial
gallons. In 1929 wire wheels achieved a preference on passenger
cars, followed by the artillery type. Steel-spoke wheels and disks are
the two types most preferred on trucks.
9
PORTO RICO
Darwin De Golia, Assistant Trade Commissioner, San Juan
Bumpers, spare tire, and rear view mirror are standard equipment
in Porto Rico. Spot lights are not in general use, and few are sold.
Colors are much preferred, although no particular one is outstanding.
Porto Ricans prefer leather upholstery, resident Americans prefer
fabric. The island is very mountainous, and there are many heavy
grades; standard American gear ratios, however, are satisfactory.
Occasionally an order is placed for somewhat lower ratios than usual
for heavy trucks, but automotive dealers do not believe that a special
gear ratio would prove an important selling point.
EL SALVADOR
A. E. Carleton, American Consul, San Salvador
There has been a notable increase in small cars in El Salvador.

Closed cars are definitely the most popular and make up 75 per cent
of recent importations. There are no definite color preferences.
Leather upholstery is preferred, in colors to match the car. Plated
work is very popular.
SOUTH AMERICA
Open cars have retained a considerable portion of their appeal

in the South American countries, particularly when the cars are to
be used outside of cities. Automobiles exported to these countries,
with the exception of British Guiana, should be equipped with metric
speedometers. Gasoline gages graduated in liters are used in all
countries except Ecuador and British Guiana. Battery ignition is
original equipment on all imported cars. High road clearance is a
matter of importance on roads outside of cities. Special gear ratio
is not required in all the South American markets, but is used to
advantage in those countries having a mountainous hinterland.
The trend in wheels has been in favor of the wood and wire types.
Disk wheels have not increased in popularity. Balloon tires are in
general use on passenger cars.
SOUTH AMERICAN DRIVE PREFERENCES AND RULE OF THE ROAD
Country Rule of road Drive preference
Argentina--------------------------------------- - - - - -] Right-hand.
Bolivia-- --. - - -] Left-hand.
:::::::::::::::: … ... ..... ... I III. Deft-hand.

5
Pneumatic,
solid.
some
H
-
standard
States
United
|7p5a-(AWood,disk,andsteelspoke.wire--Battery-------.-----|Barst"losedge--|rnygndn-etr-i-na----
--
-
Full
color
Light
----------
equipment
solid.
and
Pneumatic
Sspoke,
-
disk.
wood, |Wood,
-assenger
a("hile
5
closed
cent
per
p60
W7
----
..'.
teel
do
- nd
ire. wire.
wood,
spoke,
Steel
-----|
wire
-----
north
on
open
Bogota,
in
('losed
-------
Coloinbia
do------
TrucksCars
spoke.
steel
and
I)isk
-at er]y- |
Bolivia
-
dominates-
pen
b()
-i
battery
Magneto
--
do
... -
cars
Passenger
Trucks
TruckS! Wnger
spoke.
steel
Paraguay-
w
Wood,
cars--
touring
ood,
--
al|
Pct-ienumatic.
-All
p...
light,
to
Medium
ng-es- -o-r-ie-s-.' tires-----
spare
Bumpers,
Pneumatic.
spoke.
steel
Disk,
wire-----|
Wood,
5n-tpeigh
("losed
--
HUrugua
i-
for arisore-n-ge-r
Tires COriginal
-
ſinishes.-
2-tone
onservativBumpers,
only-
equipinent
Do. - e
colors
Bright
lights
spot
Soine
Do. Metric-
Do.doDO.
-----
plating
black;
no
tan,
blue,
Green,
mirrors-
rear-view
tires,
spare
Bumpers,
T)0.AllplaD0.
with
Colors,
--
equipment
States
United
ting- - - - - - -
--|
-
do
spoke.
Steel
-
Wheels
| Baot -ery- --- -- -.
--
Janeiro
de
Rio
of
north
Open
-|
...
-----
Brazil
-
d-
types.
All
--
--...-do
-----
-Ecuador-
.
Wire
T)isk.
--|--
- Passenger
-º
SAccessory
|
gauge
Gasoline
ifinish
Body
equipment
pe doineterI
: |--
.
Wood---
aPeru
5
pen
--7
asseng
nd
ts --
PREFERENCES
FINIsii
AND
EQUIPMENT
AMERICAN
South
CoRnEsFtErRucEtNiCoEnS?
BASIC
AMERICAN
PSouTH |
—---—
clearance
Road
Pas enger-Car
Country
types
----
-
-------
------
--
i.
|:
-
High
V7
aenaezsuend
5
open
cent
per
p90 lea-n-ge-r..
-
Ignition
-
--
|
—
-
—
aassenger.
p5
7 nd —---
—-
--
——
—-
.
—
—
—
-—
ARGENTINA
Thomas C. Ballagh, Assistant Trade Commissioner, Buenos Aires
Closed cars are numerous in Argentina, but open cars still enjoy
a considerable portion of the market. It is believed that of all cars
in use, closed cars account for 30 per cent of the low-price, 60 per
cent of the medium, and 50 per cent of the high-price group. Plated
work is universally in demand. Leather upholstery is used in open
cars and to some extent in closed cars. Dark and medium colors
are the most popular, but about 20 per cent have light-color finishes.
All automobiles exported to Argentina should be equipped with
metric-system indicators and with right-hand drive. Batteries are
used almost to the exclusion of magnetos.
There is a widespread preference for automobiles with high-road
clearance, owing to the dirt roads outside the cities. At present,
American and European manufacturers do not cater to this demand.
BOLIVIA
Edward G. Trueblood, Aimerican Vice Consul, Ila Paz
In Bolivia, body finishes are preferred in colors, rather than black.

Two-tone finishes and trimmings are popular. Conservative colors
are preferred. Upholstery of real or artificial leather is requested
by a large percentage of car buyers. There is a divergence of opinion
with regard to battery or magneto equipment. High-road clearance
is unanimously favored, owing to the very bad general condition of
the roads. Artillery wheels are usually preferred on passenger cars,
with a growing demand for wire wheels. Disk and steel-spoke
wheels are preferred on trucks.
Bodies should be strengthened in every possible way in order to
stand the rough usage automobiles are given. Special gear ratio is
of great advantage on this market, because most of the cars in the
country are used in the plateau region. This region has an altitude
of 13,000 feet, and roads have steep grades. Increased climbing
power is essential in view of the loss of power due to the altitude.
BRAZIL
Howard H. Tewksbury, American Trade Commissioner
The automotive market of Brazil is controlled by dealers in Ameri

can cars, and American innovations are usually popular. At present,
bumpers are used on practically all cars. Spot lights are used to a
small extent. Bright-colored vehicles with plated trimmings are
greatly in demand. Leather or imitation-leather upholstery is gen
erally preferred north of Rio de Janeiro.
The gasoline gage and the speedometer should register in the
metric system; however, gasoline indicators showing 4, 4, 34, and
full are acceptable. Battery ignition is almost universal. Magneto
ignition is sometimes requested for heavy trucks. High road clear
ance is important. Solid tires are discouraged by heavy taxation.
Wood and wire wheels are preferred on passenger cars and trucks up
to 3 tons. Trucks over 3 tons are usually equipped with steel-spoke
or heavy disk wheels.
12
CHILE
Howard H. Tewksbury, American Trade Commissioner
The Chilean purchaser of an automobile desires as much extra

equipment as possible. Distributors ordinarily put on additional
equipment to meet this demand. Although any color is acceptable,
the brilliant and light shades are preferred. It is very difficult to
keep dark-finished vehicles clean because of the great amount of
dust, particularly in the summer season. While plated trimmings
are very well liked, their absence is not sufficient to affect sales
materially.
Fabric, leather, and some artificial leather are all used in the up
holstery, and there appears to be little choice between the first two.
Leather upholstery is said to be the logical type to supply for central
and northern Chile, because of the ease of cleaning it, but no pro
nounced preference has developed for it except in the north.
It is estimated that closed cars account for 50 or 60 per cent of
sales at the present time, and the ratio is increasing. The demand
for this type of car has come almost entirely within the past three
years and has grown very rapidly. In cars of the $2,000 price class
approximately 80 per cent of the present sales are closed models.
Roadsters, coupés, and cabriolet models have a small demand.
COLOMBIA
Walter J. Donnelly, American Commercial Attaché, Bogota
Standard accessories, such as bumpers, rear-view mirrors, etc., are

in wide use throughout Colombia. Spot lights are increasing in pop
ularity with the constant extension of new roads from the principal
cities. Horns and other warning signals are in great demand. Light
colors are preferred. Leather upholstery is the most acceptable to
purchasers outside of the cities. The road clearance of cars shipped
to the Colombian market should be high. All indicators should register
in the metric system. Artillery wheels are preferred on passenger
cars, and steel, wood, and wire wheels are used on trucks, depending
largely on the vehicle and what it is used for.
ECUADOR
John T. Wainwright, American Vice Consul, Guayaquil
Passenger cars in Ecuador at the present time are used for taxi
service and restricted pleasure driving in the cities. There has been
no opportunity for any real preferences to manifest themselves.
Bright colors are in demand. The gasoline gage should register
United States gallons, but the speedometer should be in kilometers.
It is believed that special gear ratios will be necessary as roads are
built in the interior, because of the mountainous nature of the hinter
land.
PARAGUAY
John B. Faust, American Vice Consul, Asuncion
Approximately 90 per cent of all passenger cars in Paraguay are

five and seven passenger touring cars. Practically all colors except
black are used; green, blue, and tan are the most popular. Plating
work is in great demand. The gasoline gage should show liters. The
practice of having the gage indicate full, 94 full, etc., is disliked. A
10-inch road clearance is needed because of the lack of roads. Almost
13
all passenger cars and trucks have wooden wheels, but some passenger
cars have wire wheels, and a few trucks have steel wheels. The market
is essentially a price market, and only the most necessary and cheapest
equipment can be sold.
PERU
Julian D. Smith, Assistant Commercial Attaché, Liina
Stock models of American cars are entirely satisfactory to Peruvian

purchasers. The gasoline gage should show United States gallons,
and the speedometer should register kilometers. Colored cars with
plenty of plated trimmings are the most popular. Wood wheels are
in greatest demand. Automobiles for use in the interior should have
a high road clearance. Automobile dealers report that Peru takes
an unusually high proportion of closed cars.
Ur UGUAY
Connie H. Herron, Acting Commercial Attaché, Montevideo
Most American and European cars are imported into Uruguay fully
equipped, including a spare tire. Blues, tans, greens, and combina
tions of colors with plated trimmings are popular. Imported cars are
usually upholstered in plush, leather, etc., in tan, grey, brown, and
other dark colors. Sport cars tend toward light, fancy colors with
leather upholstery to match.
The metric system is in use, and all registering apparatus, including
speedometers and gages, should be in kilometers or liters. Wood and
wire wheels are favored for use on passenger cars and light trucks.
Steel-spoke and disk wheels are used on heavy trucks. No special
gear ratios are necessary.
VENEZUELA
O. R. Strackhein, Assistant Trade Commissioner, Caracas
Open cars are the most popular with the Venezuelan public. Dark
colors, with plated trimmings and leather upholstery, are the principal
features of local requirements. The gasoline gage and the speedome
ter should register in the metric system. The road clearance should
be high. Wood and wire wheels are preferred on passenger cars and
steel wheels on trucks. Because the country in mountainous, a
special gear ratio is preferred if available as factory equipment.
EUROPE
The European market preferences are in the nature of equipment

and finish rather than constructional features. These preferences are
very largely in accordance with whether there is a local automobile
manufacturing industry. In those countries where automobiles have
been manufactured in past years, there are certain definite preferences.
The excellent performance and appearance of American cars in these
markets, however, have had their influence in Europe, and also caused
the local industry to adopt American methods. This is seen in the
now almost universal adoption of the battery system of ignition and
the original equipment of automobiles with bumpers and rear-view
mirrors, etc.
European car owners desire their cars to be individualistic. This is
particularly true of high-price cars. . As a result, European manufac
turers cater very closely to individual tastes. This tendency is break
14
ing down, however, and every year brings a new class of purchasers
for American stock-model cars.
American engineering features are satisfactory, with but few excep
tions. Furopean roads are seldom well lighted, and night driving
makes the use of very strong headlights necessary. European manu
facturers have recognized this fact and have developed several
powerful lighting systems.
RULE OF THE ROAD AND DRIVE PREFERENCES IN EUROPE
Country . Rule of road Drive preference
Austria- - Left; to be changed to right Right or left hand.

Azores - Right-hand.
Belgium Left-hand.
Bulgar Do.
Cyprus. - Right-hand.
Czechoslovakia----------------------. ----- -l Do.
Danzig------------------------- - - -' Left-hand.
Denmark--------------------------- ----- i -] I)0.
Estonia------------------------ i I)0.
Finland------------------------ - I)0.
France------------------------- - D0,
Germany----------------------- Do.
Gibraltar----------------------- Do.
- - - - - - - - - - - | D0.
- - - - - - : I., - Right hand.
- - - - - - - Left-hand.
- - - - - - - - - - , Right-hand.
| Left-hand.
Do.
I)0.
- Do.
Right-hand.
Left-hand.
Right-hand.
Left-hand.
D0.
No preference.
Rumania.-- Ileft-hand.
Russia----------------------- -- Do.
Spain. ----------------------- d Dealers should specify.
Sweden.---------------------- - Right or left|hand.
Switzerland-----------------. - Left-hand.
Do.
- Right-hand.
-------------------------------' Left-hand.
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5.
and
Pneumatic tic
a
in
Pneu
and
6
to
up
Pneumatic
and
Pneumatic Ineu
and
Solid Solid
.
pneu
and Pºmatic
and
-
cars
Passenger
Trucks
.Pneumatic.
.
Balloon
--- Sen isolid. .pneºntic- Pneumatic. Pneumatic. Pneumatic.
| Fºurs
High
Pneumatic
|
and
IDO. Do. ----do
Balloon Do. Do.
-- Do. matic.
l
Solid. L}o. tons. solid. Do.
- O. Soliol. Do,Do,
I)0. I)0. ID0. L)0. I)0. I)0.
Tires
bal
duty
heavy
balloon.
Bal o n.- - - - - -
loon.
Spe dometer
Kilometers CterS.--
plating-. - - - - - -Miles- - - - -
Colors,
lo
( Miles- - - - Kilom --do
-
-
-
PREFERENCES
FINISH
AND
EQUIPMENT
EUROPEAN
|
gauge
Gasoline
finish
Body
prDark
Noshaedfs-e-re-nc- e- - - -
Metric
tri nining.
with
("olors Metric- - - - - -
green, Green,
maroon,
blue,
dark
Black, yel
and
reds
some
brown,
blue,
.
dualistic. plating
Inaroon;
gray,
blue,
Dark
trimmings
with
dark
or
Black -
brown
and
green,
blue,
Black,
trim ings- .
plated
and
Colors
hues
Inedium
and
Dark
for
Bright
…
cars.
open -------
plating--
shades,
IDark ----ting.I.I.I.Modern
plaColors, platin
colors, plating--
colors,
Bright
-
plating- - - - - Dark
with
Colors -
plating--
colors, plating- - - - - - -
with
Dark, Colors
|
plating--
with
plating
with
l)ark-
finishes-.
Colored
Iº-la-t-in-g- - - Colors,
-Colors,
- - plating- - - - - - -
black- -. .-
Mostly
col rs- - - - - - -
Dark
- col rs- - - - - - - Dark
Quiet shades -
colors
Soft
brown.
(lo -
-
Colrs- - - - - - - - lows.
rear
wiper,
tires,
spare
two
Bumpers, mirrors
rear-view
tires,
spare
Bumpers,
otlight- - -
SI
including
equipment,
All
horn
loud
tire,
spare
Burnpers,
equipment
Accessory ---------
Securely
attached
iſ
kinds
All
-
mirror
rear-view
Burnpers,
kinds----
all
of
Ornaments
equipment- - - - - -
Standard equipment
Standard equipment- - - - - -
Standard
-
equipment
(Feneral
- American
Standard equipment- - -
(leneral
equipment- - -
Full equipment
Full
All
-
---
equipment Inirror.
view eAll
quipment.- -No
preference- -
“extras”- - - - - -
All
...---
-------
Minimum
---do -Usu-al- - - - - - - -
-
("ountry Czechoslovakia- - -
-
Switzerland- - - - - Yugoslavia- - - -
Denmark GermanyGibraltar- - - - - -
-
Albania Austria
-
Azores
Belgium--Bulgaria- - - - Danzig- - - - -
--
England
France- - - - - Turkey- - - - - - -
17
ALBANIA
Julian C. Holmes, American Charge d'Affaires, Tirana
The number of motor vehicles in Albania is small, and the purchas

ing public has not developed any special preferences for finish, style,
or equipment. The majority of the highways are so bad that an
automobile is regarded not as a pleasure vehicle, but solely as a means
of transportation. Most car owners are less concerned with the
appearance of their cars that with their strength, endurance, and
ability to stand up under rough treatment and lack of care.
AUSTRIA
John A. Embry, AIIlerican Commercial Attaché, Vienna
There are no Austrian preferences which American automotive

manufacturers do not provide for and which other foreign or domestic
manufacturers cater to. The American car was instrumental in
teaching the local public what to expect and demand of a car.
All American color combinations are acceptable; darker shades
seem to be more popular than light colors. Plated tirmmings are
very much in favor. The standard types and colors of American
upholstery are satisfactory. Black, dark blue, and brown leather are
used to some extent on locally made cars. Artificial leather is unpopu
lar owing to the rapid wear.
AZORES
William H. Hunt, American Consul, St. Michal's
There are no local preferences in the Azores because of the small

size of the market. Colored cars, with leather upholstery to match
and plated trimmings, are popular. Wood and wire wheels are used
almost exclusively on passenger cars and trucks.
BELGIUM
Ileigh W. Hunt, Assistant Commercial Attaché, Brussels
The trend of Belgian preference has been constantly toward the

American vehicle. Price is an important factor, but purchasers
desire to have their car fully equipped and to avoid all extra charges.
Bumpers are now standard equipment, as is battery ignition. Spot
lights are not widely used and at the present time are not popular
because of the misuse of such lights by autoists. Artistic body
finishing and color combinations are very important. Blue, black,
red, grey, and certain shades of green (never bright) are the most
popular finishes. There has been a demand for novel color combina
tions. Plated trimmings are in universal demand.
The demand for upholstery is largely for grey and blue-grey fab
rics. Fancy upholstery is used on de-luxe cars; the chauffeur's seat in
limousines is almost invariably of black leather. The gasoline gage
and the speedometer should be in the metric system.
Artillery wheels are used to a great extent at the present time, with
wire wheels on the ascendancy. Disk wheels are not used as much as
formerly on new cars, although local preferences are in favor of disk
and wire wheels.
18 -
BULGARIA
Samuel Green, American Consul, Sofia
Black and dark colors are preferred in Bulgaria for closed cars and
bright colors for touring and sport cars, though the demand for the
latter is very small. Plated trimmings are very much preferred, as
well as leather upholstery in light colors. The magneto ignition
system is preferred. The gasoline gage should register liters, and the
speedometer should register kilometers. Road clearance should be
high (more than 10% inches) on account of the poor conditions of
roads in rural districts.
CZECHOSLOVAKIA
R. I. Rankin, American Commercial Attaché, Prague
Preferences in the matter of automobile equipment in Czecho

slovakia are comparatively the same as in the United States. Colored
cars with light shades of upholstery are popular. There is now a
tendency to add to the usual equipment in the way of accessories
in order to have additional sales arguments. Spotlights have come
into wide use and are generally included as standard equipment.
Two extra tires, with rims or wheels, are commonly furnished, and
the local preference is to place them on the sides of the car in fender
wells. This facilitates the location of a trunk rack at the rear, as
automobile trunks are in common use though not usually furnished as
standard equipment.
DANZIG
C. Warwick Perkins, American Consul, Danzig
Cars in Danzig are usually equipped with spare tire, bumpers,

rear-view mirror, tire covers, two horns (one hand), and a turn indi
cator. Spotlights are prohibited by law. Bright colors and plated
trimmings are preferred. All cars should be equipped with gauges
and speedometers registering in the metric system.
DENMARK
HIarry Sorensen, American Commercial Attaché, Copenhagen
Accessories are used quite extensively in Denmark. Black is still

used as a body finish on a very large number of cars, but other colors,
especially the brighter ones, are coming into greater vogue. Plated
trimmings are used very etxensively. Leather is used only to a very
small extent usually for open cars and chauffeurs’ compartments.
Upholstery in closed cars is ordinarily of plush or broadcloth of con
servative shades. The very low types of cars are favored, low clear
ance being popular and made possible by the excellent road system.
The majority of passenger cars are equipped with artillery wheels,
with disk and wire wheels increasing in popularity. Truck wheels
are usually of wood, but in the lighter delivery cars, disk wheels are
increasing in favor. ENGLAND
Donald Renshaw, Acting Commercial Attaché, London
The majority of the cars on the British market are well equipped
with accessories. The colors in vogue are subdued tones in the high
price range and brighter colors on the less expensive cars. The
individual purchaser desires his car painted to suit his own tastes,
-
19
and manufacturers are inclined to go as far as practicable in meeting

the wishes of their customers.
The trend in passenger cars is strongly in favor of closed bodies.
Closed cars accounted for 80 per cent of 1929 sales.
In the passenger-car field, the balloon tire has definitely established
itself. . In the case of trucks and busses, the tendency is away from
solid tires and toward high-pressure pneumatic tires of the heavy-duty
type.
Wire wheels are now in ſvor. At the opening of 1930 it was esti
mated that 66 per cent of the cars offered for sale were equipped with
wire wheels, 23 per cent with artillery wheels, and 11 per cent with
disk wheels. Steel wheels are preferred on trucks.
ESTONIA
J. Reintain, Office of American Consul, Tallinn
American-made motor vehicles dominate the Estonian market,

and local preferences are for accessory equipment. Two spare tires
are usually carried because of the poor roads. Magneto ignition is
preferred, owing to the lack of battery-service facilities outside of
Tallinn.
Dark colors, especially red, are preferred. Light and ſlashy
finishes are disliked. The road clearance of standard American cars
is satisfactory, and no special gear ratio is necessary. Artillery wheels
are still preferred for passenger cars.
FINLAND
Osborn S. Watson, American Commercial Attaché, Helsingfors
Closed five and seven passenger cars enjoy a distinct preference

in Finland because of the cold winters. Dark body finishes are in
demand and plated trimmings are greatly liked. Passenger cars
are usually upholstered in mohair or broadcloth. Shock absorbers,
radiator shutters, and heaters are widely used, American types pre
ferred. The flat steel bumpers are preferred.
The metric system is in use; therefore, gasoline gages and speedom
eters should register accordingly. High roads clearance is desired
because of the rough roads. Disk, wire, and artillery wheels are
used on passenger cars, with preference for the latter. Steel and
wood wheels are used on trucks.
FRANCE
W. I. Finger, American Trade Commissioner, Paris
Automobiles in France are equipped with the most up-to-date con

trivances, as in all well-developed automotive markets. Practically
all bodies are in color, almost none in black. Plated trimmings are
used to a great extent. Upholstery is usually of velour, the color
harmonizing with that of the car.
The gasoline gage should measure liters. The speedometer should
register kilometers. The preference is for cars of low road clearance.
For low-price cars disk wheels are usual; for more expensive cars,
wire wheels. I)isk wheels are usual for trucks up to 4 tons; cast
steel for larger trucks.
American automobiles are said not to cater to many of the local
| preferences. The lights on American cars are not as powerful as the
French desire for fast driving at night, whereas French and other
20
foreign cars meet this demand. American cars do not have the
desired spot light on the right, as do most foreign-made cars. Motor
ists desire a fuel tank that will carry them 250 or 300 miles, which
foreign cars in general do not have. The method of carrying tools
on American and foreign cars is unsatisfactory. Lower road clearance
than is provided on American cars is preferred.
GERMANY
Douglas Miller, Assistant Commercial Attaché, Berlin
Standard accessories in Germany include single or double bumpers,

at least one square tire (two preferred), spot lights, and rear-view
mirrors. The gasoline gage and the speedometer should register in
the metric system. Battery ignition is now accepted on American
cars, but magnetos are still common on German-built cars. Solid
tires are prohibited by law except in the case of extremely slow
moving vehicles. The leading demand is for artillery wheels, used
on about 50 per cent of cars. Disk wheels are next, with 40 per cent,
and wire wheels are used on 10 per cent. Steel wheels are generally
preferred for trucks. GIBRALTAR
R. L. Sprague, American Consul, Gibraltar
Extra equipment on automobiles is very popular in Gibraltar.

Colored cars are increasing in use, and plated trimmings are greatly
liked. The road clearance should be fairly high. Magneto ignition
is preferred. Disk and wire wheels are preferred on passenger cars,
and artillery wheels on trucks.
GREECE
Frederick Lyon, American Commercial Attaché, Athens
Standard equipment is desired on passenger cars. Spot lights are

prohibited in Athens by police regulations. Smart colors, especially
bright, 2-color combinations, enjoy a decided preference. Leather
upholstery is preferred in open and sport-model cars, while closed
models usually have mohair or broadcloth upholstery. There are
no color preferences in upholstery.
In Athens and the larger provincial cities there has been a tendency
in favor of closed cars. In the smaller towns the open car retains its
popularity; 5 and 7 passenger cars are preferred. Battery ignition is
now in general use, although taxi drivers have experienced consider
able difficulties with this type. There are no preferences in wheel
equipment on passenger cars. Trucks with steel-spoke wheels are
in demand because of the severe overloading and the unfavorable
road conditions under which most of the hauling is done.
HUN GARY
Walter M. Slavik, Assistant Trade Commissioner, Budapest
The average Hungarian car owner desires his car equipped with
every conceivable type of accessory. Attractive colors with plated
trimmings are desired. The prejudice in favor of magneto ignition
has now been dispelled. A hand horn is required by law in addition
to the electric horn. A turn-signaling device is also required. The
road clearance should be high on account of the rough roads.
21
The chief complaint against American cars concerns their head

lights. These are declared neither powerful enough nor focused
properly. Foreign manufacturers cater to this preference.
IRISH FREE STATE
Cornelius Ferris, American Consul General, Dublin
Approximately 90 per cent of cars sold in the Irish Free State are
of the closed type; 5-passenger units are preferred. Black predomi
nates in the more expensive types, and maroon, blue, gray, and green
are popular in the low-price types. The majority of the car owners
do not purchase any extra equipment other than standard. Magneto
ignition is preferred, largely because of the poor battery-servicing
facilities. The standard American rims are not popular, owing to
the difficulty in changing tires and to the lack of proper tire-fitting
machinery in garages. ITALY
D. F. Spencer, Assistant Trade Commissioner, Italy
Closed cars are increasing in popularity in Italy, and 90 per cent

of new-car sales are closed models. Navy blue is the most popular
color, followed by green, maroon, black, and gray. Leather uphol
stery is preferred in sport models. Upholstery in closed cars is usually
of fabric. Battery ignition is now preferred and is the original equip
ment on 90 per cent of Italian-made cars. The minimum road clearance
is 9% inches. Artillery wheels are in great demand; disk wheels are
used only on the more expensive cars. Wire wheels do not enjoy
great popularity at the present time. Disk wheels are used almost
universally on trucks. LATVIA
Lee C. Morse, American Commercial Attaché, Riga
The trend in demand in Latvia is for closed cars; however, the higher
duties on closed cars make for an artificial demand for open cars.
Dark shades have been the most common in the past, but bright
colors are now increasing in popularity. American cars should be
equipped with metric gasoline gage and speedometer. High clearance
is desirable, as the roads are poor and deep ruts common.
LITHUANIA
Hugh S. Fullerton, American Consul, Kovno
The market in Lithuania is being educated to the use of automo

biles, rather than automobiles being adapted to the preferences of the
market. Machines are sold on their attractive appearance and their
ability to resist the rough treatment they receive on being driven over
the rough roads. LUXEMBURG
Frederick L. Washbourne, American Vice Consul, Luxemburg
Approximately 55 per cent of the cars in use in Luxemburg are of

American origin, and this percentage is constantly increasing. The
present demand is for closed cars of 5 or 7 passenger capacity with
conservative body colors. The gasoline gage and the speedometer
should be in the metric system. Disk or wire wheels are preferred
on passenger cars. Truck wheels are invariably of the disk type.
22
European headlights are more popular than those of American man

ufacture. The roads are narrow and never lighted, and American
lights are said to be blinding. A number of European lighting
systems are popular. MADEIRA
J. F. Huddleston, American Consul, Funchal
Most of the cars sold in Madeira are for use as taxis in the tourin
trade: 90 per cent of the demand is for touring cars having the usua
standard equipment. Colored cars with plated trimmings are pre
ferred. Registering apparatus in the metric system is required. Wire
wheels are preferred on passenger cars and disk and steel-spoke wheels
on trucks.
MALTA
Sidney F. O'Donoghue, American Consul, Valetta
In former years the open car dominated the market in Malta, and at
the present time some 60 per cent of all cars are open. However, there
is a trend toward closed cars. Modern colors—cream, brown, green,
and blue—are preferred. The gasoline gage should register British
imperial gallons. Low road clearance is very popular.
MONACO
Robertson Honey, American ("onsul, Nice
There are no local preferences in Monaco because the market is so

small. In general, French preferences apply.
NETHERLANIDS
Paul S. Guinn, Assistant Coinnercial Attaché, The Hague
("ars equipped according to American standards fully meet the

Netherland demand, except that electric direction indicators are
required. European manufacturers commonly equip their cars with
such devices, which are universally employed. Colored finishes are
popular, though black enjoys some demand. American color combi
nations are considered to be well chosen, but the soft colors are
preferred. This preference also applies to upholstery.
Over 90 per cent of the cars sold are closed models. The gasoline
gage should be of the metric type, but indications as full, 94, 9%, and
% are considered satisfactory. The road clearance should not be too
high. Standard American road clearance satisfies in this respect.
German manufacturers equip their cars with a trunk and install
the spare tire on one of the front fenders. In view of the local popu
larity of this arrangement, it has been suggested by many dealers
that American manufacturers adopt this same principle in cars for
export to the Netherlands, as such equipment is highly appreciated
by the public.
N () irth ERN Iir ELAND
Russell M. Brooks, AII.erican Consul, Belfast
The automotive market of Northern Ireland is an integral and

inseparable part of that of England, and cars meeting requirements
there are suitable in every respect to the needs of Northern Ireland.
Closed cars constitute almost all of the demand. There is a demand
for small light cars of the “baby” type, with 3 or 5 passenger capacity.
23
NORWAY
Marquard H. Lund, American Commercial Attaché, Oslo
American cars meet with all Norwegian preferences and set the
style. Somber colors are preferred. Four-passenger vehicles are
most popular. Artillery wheels are in demand on passenger cars.
A special gear ratio is sometimes required on trucks, but the standard
ratio is sufficient on passenger cars. Norwegian roads are narrow
and tortuous; as a result, excessively long cars are not popular, and
some cases are known where such cars have been refused registration.
POLAND
Gilbert Redfern, Assistant Trade Coimmissioner, Warsaw
Bumpers, two spare tires, rear-view mirror, and tire covers are
usually demanded in Poland. Such interior decorations as a small
flower vase, vanity case, smoking case, lighters, etc., are good selling
points. Spot lights, as a rule, are purchased locally, as are direction
indicators. The latter are obligatory for closed cars. Bright colors
have become very fashionable. Closed cars are more in demand
than a few years ago, with 5-passenger sedans leading in popularity.
Open cars now average 15 per cent of the total automobile sales.
Two-door sedans are not popular, owner-drivers preferring coupés.
A sedan owner almost invariably has a chauffeur, the relations be
tween car cost and a chauffeur's upkeep being very different than in
the United States. Moreover, Polish owners, as a rule, do not give
personal attention to their cars.
RUMANIA
Sproull Fouché, American Commercial Attaché, Bucharest
Standard accessories, such as bumpers, spare tires, and rear-view

mirrors, are in demand in Rumania. There is also a considerable
demand for theft-proof radiator and gasoline-tank caps, in order to
prevent petty pilferage.
Owing to the difference in import duties, open cars were formerly
most popular. However, since the operation of the present tariff,
imports of closed cars account for 70 to 80 per cent of the total.
Wire wheels are preferred on passenger cars and steel wheels on
trucks.
SPAIN
Charles T. Hohenthal, ()fflee of American Commercial Attaché, Madrid
Closed cars account for 95 per cent of total sales in Spain. Those
having a large seating capacity are preferred, inasmuch as car owners
often employ chauffeurs and, in addition, customarily take the entire
family with them when touring or making excursions.
Batteries are gaining in popularity. It has been reported that
American batteries should be of a higher voltage for the Spanish
market. At present some criticism is made of American headlights,
in that they are not powerful enough.
In general, dark colors are preferred. Plated trimmings are in
wide demand. Upholstery of leather or imitation leather is pre
ferred. In the case of cloth upholstery, French designs appear to
be the most popular.
24
SWEDEN
Basil D. Dahl, Assistant Trade Commissioner, Stockholm
Most cars sold in Sweden are equipped with a spare tire, bumpers,
and a rear-view mirror. Black is the customary color of cars on the
market, but of late other dark colors—maroon, green, and brown—
and 2-color bodies have become popular, especially on roadsters and
sport models. There is a small demand for solid tires on very slow
moving vehicles. Artillery wheels are widely used on passenger cars,
with some demand for disk and wire wheels. Light trucks are
usually equipped with wooden wheels and heavier units with steel
wheels.
SWITZERLAND
Kenneth MI. Hill, Assistant Trade Commissioner, Berne
Spot lights are now ſound on approximately 30 per cent of all

Swiss cars, but the trend is away from the use of such lights. Certain
types have been forbidden by law, and a few Cantons will probabl
prohibit their use entirely. There is an increased use of small auxil
iary headlights and side lights to facilitate country driving. Wind
shield wipers are popular. Direction indicators are increasing in
popularity. There are several types on the market, chiefly of local
manufacture. The most popular ones are illuminated arrows visible
from the front and the rear of the automobile.
Closed 5-passenger cars are the most popular, followed by 2-pas
senger, 4-passenger, and 7-passenger models. All cars should be
equipped with instruments recording in the metric system. Battery
ignition is almost exclusively used. Artillery wheels lead in popu
larity on passenger cars, the ratio of all cars having such wheels being
estimated at 85 per cent. Wood wheels are also preferred on trucks.
TURKEY
John T. Harding, Assistant Trade Commissioner, Istanbul
The popular Turkish preference is for showy and bright accessories;

the people preſer such articles to plain ones which may be of better
quality. Dark shades of green and red are in demand, with as much
plated trimmings as possible. Leather upholstery is preferred in
both open and closed cars.
There is a very decided and growing preference for closed cars.
All cars should have speedometers registering kilometers. An Amer
ican gasoline gage is acceptable, inasmuch as the popular unit of
measure is the ordinary 5-gallon can. Battery ignition is preferred,
but all vehicles sold for governmental use must be equipped with
magneto ignition. Disk and wire wheels are in demand for passenger
cars. Steel wheels are preferred on heavy trucks.
YUGOSLAVIA
Stewart E. McMillin, American Consul, Belgrade
Automobiles in Yugoslavia are usually equipped with bumpers,

spare tires, and rear-view mirrors. Spot lights are very popular.
Fancy-colored finishes with plated trimmings are preferred. Gages
and speedometers should be in the metric system. Most of the pas
senger cars have artillery wheels, but the use of wire wheels is in
creasing considerably.
25
ASIA
American cars set the styles and mold the preferences in practically
every section of the Asiatic Continent. In general, it may be said
that accessories of all kinds are very popular everywhere. Bright
colors and showy trimmings are likewise in favor. The open car
maintains its position in the Near East and the East Indies. The
closed car is preferred in China, Japan, Chosen, and the Philippines.
Leather upholstery is greatly in demand in open cars, as it is considered
to be cooler and more adaptable to warm or moist tropical weather.
High road clearance is desirable in most cases when traveling outside
of cities. There is a wide divergence in the use of gasoline gages.
The imperial gallon is the standard of measure in many sections of
Asia, yet most cars exported from the United States have the standard
American gallon gasoline indicator, and there does not appear to be
any considerable criticism from car buyers. In the case of speed
ometers, there is no absolute preference in many countries, and
speedometers registering in miles are usually satisfactory.
RULE OF THE ROAD AND DRIVE PREFERENCES IN ASIA
Country t Rule of road Drive preferences
'TU------------------------- Right-hand.
- - ---- -- 1)0.
------ - It ight-hand, leſt prohibited.
-- Right-hand.
I)0
- Left-hand.
IIong Rong. - Right-hand, left prohibited.
India.-- -
- Right-hand, leſt prohibited in
In any cities.
---------------------- Right-hand, left-han dirive is ex
tensively used.
do---------------------- Right-hand.
- - - I, eſt-hand.
- Left or right hand.
- IRight-hand.
- - --- 1)0.
----------------------- Leſt-hand.
BASIC
Asiatic
CoNSTRUCTiox
PREFERENCES
Ignition Wheels
Passenger-car
types clealance
Itoad
l'assenger
I’assenger
cars1.1-c
*I***
e-
*...
Trucks ------ Trucks
cars
Arabia ()
pen
5-passenger M. agneto----.
preference;
No
-Magneto-
Wood- Steel
spoke.
desert
for
high
ulse.
:i
Malaya
British ('losed
-.
5-passenger --.
....
Battery
.IBattery
preference---
No
.-..
-W
wood
ire, | isk,
Dsteel
spoke.
Ceylon (),
wºn
5-passenger do
--
.-
.()rdinary
---
--do
-- do------ Wood.
-
-
-
-
China per
70
closed
cent inai:-
Battery
imag-
and
interior
for
High
-1Battery
wood,
isk,
) Wood,
disk.
neto.-
wire.
("hosen Battery.
---
High
outside
disk,
Wood,
of
.Iłattery Wood.
|and
wire.
les.
(“it
Kong
Hong per
50
open
assenger
5-1
cent -(lo
-i
--
-do
-
-------
Low
and
I)isk Steel
spoke.
!
wire.
India per
•0
closed
cent i----donches.-----
-do
9per
-6-.
cent
0 I)0.
--
30
|w|ire,
| per
cent
Iraq
(lisk.
-
---
----do------------|--
Š
90
.per
open.
cent
-
--
-lo
----.
Iligh----
-and
i
W
.--;
re Disk
steel
and
-
|| wood.
Japan per
t;3
closed
cent ----do----
---------'-----
-----do.
--->
and
Wood
-
- --------
C10-- steel
| |disk. |for
spºke,
wood
units.
light
pen
()
cars---
touring do-...--...-
...
Average...
...
and
.Wire Wood.
--------
-
-
-
-
wood.
|l
Persia ()|en
touring
7-passenger
--.--
.. Wire--------
|H
--.
--- -.
.--------do
--]igh. D| isk.
Islands....I
i’hilippine
.. per
90
5-passenger,
70
closed;
cent
20
cen illag-
-Battery
and
Wood-------
cities------'
in
||Low Steel
spoke.
7-passenger. | 0.
not
-
Syria- per
f()
ascendancy-...--..
on
closed
open;
cent High.----------.'
wire,
Wood,
Battery----...-Disk,
wire, stcol
--
| disk. spoke.
-)0.
I.
-
-dolvº)
S-------
|
pneu
and
olid-o
d
-
--.
Miles
...
-
.
cars
Passenger
Trucksl
Banleoun.i-na- t-ic-.
-----
P----do d’neuomatic.
lKilometers
.----------
Imatic.
MaiSolid.
bi
Full
l eos-n.- - --| ...and
-ighdo
H- Tyres ure
l)0. B-al --do
1
.
-
I)0.o n.- - - - -. -
---do
I)0.
-do
---------- --
--do
l)0.
- -'l'- - - - - - ...-do
.
-do
)0.-
I ~!
-------
--
do
Kilometers
I)0. - do
-
|-
l)0.
----------
----do.
Tires
I |
balloon.
!
-(ºlo
)-
|
lo
0.
Spe dometer
-
-
EFERENCES
Pit
FINIsii
AND
ENT
Equipm
Asiatic gage
Gasoline
finish
Body
Chwith
Cinta-Standard
S|
United
trim-'
.olors
a- t-e-s-..- -.- -. Japan
.
inirror.
rear-view
tire,
Spare
13umpers,
n("olors,
I
striped,
States.
ited -
preference
No --
.
States.
Inited
U’
. Pº,
-ir o-r|
mnickel
rear-view
tire,
spare
Iłumpers,
British
trim- - ---- -- British -- -- -- - "eyComplete.
-Bumpers,
Malaya
tire--
spare- -----
i
red,
dark
Green,
---do -lon.---
B-right
-,
. -- -- -.
with
colors
--do. -.--.- .- Hong
- colors,
S- -.-oſt
,
--...--
no
-...
Chosen.
-
light
dome
with
Standard,
-----...-
----------
do -All---
--
Kong.
------.
B:
,
with
colors
.
- -ritish
right
- -----,. India-
.
-...Iraq
---
rack
trunk
including
Complete,
colors.
Bright
-
-do
-----. B.
,
.
mirror---
rear-view
and
-urnpers
-
.Light--
do
-- do
-
do
---------
.
- INnecolors,
East
wiper...
window
mirror,
rear-view
Bumpers,
Ldtiight
-
110
Met hesr-la-nd.
triin- -
.
T triminings.
black, ever
(n
Colors
Persia plating
and
Colors
green),
plating.
blue.
and -
tr|
imining.
-
plating. !
- plating.
i
IIllngS.
- m|
ings. : -
1ngS.
In
-
acces
of
kinds
all
and
mirrors,
tires,
spare
Bumpers,
equipment
Accessory
-
States-
l'nited
to
Similar
Miniinuin
Sorles.
Country
Arabia.--
28
ARABIA
Cloyce K. Huston, American Vice Consul, Aden
Open 5-passenger cars are in greatest demand in Arabia. Black

body finish with suitable stripes is the favorite color. Dark uphol
stery of strong, durable materials should be provided. The use of
green should be avoided, in either upholstery or body finish. Magneto
ignition is preferred, but natives are getting used to battery ignition.
Road clearance is of little importance except when the vehicle is for
use in the desert, where high road clearance is required. Solid tires
are used on 50 per cent of the trucks. Standard gear ratio is satis
factory for driving in the seaport towns, but a special gear ratio is
appreciated if the car is to be used to any great extent in the interior,
where the desert sand presents traction problems.
BRITISH MALAYA
Don C. Bliss, American Trade Commissioner, Singapore
The closed car is gaining in popularity in British Malaya, particu

larly in the medium and high price classes. The most popular seating
capacity is five, and scarcely any larger models are sold. Bumpers
and rear-view mirrors are usually original equipment on all cars.
Spot lights are prohibited by local legislation in Singapore. Nickel
or chromium plated trimmings are greatly admired, and colors are
in demand in the cheaper cars, green being particularly favored by
Malaya and dark red and blue by others. In the more expensive
cars, black is still popular. Leather upholstery in colors harmonizing
with the body finish is preferred. Unusual road clearance is not
considered important.
Disk wheels are not in favor in Singapore, buyers preferring wire
or artillery wheels about equally. British cars sold there usually
have artillery wheels, and the American cars have wire wheels.
Wood or steel-spoke wheels are preferred on trucks, especially the
latter on heavy-duty vehicles. -
CEYLON
Illewellyn E. Thompson, American Vice Consul, Colombo
Open cars are the most popular in Ceylon, because they are consid
ered cooler.
There is a strong preference for colors in body finish, particularly
among the native population. Flashy light colors and plated trim
mings are very popular. Spot lights are widely used in the interior.
Leather upholstery is the most practicable because of the weather,
brown is one of the most popular colors for upholstery.
Side lights, in addition to headlights, are in demand on closed
models. A ceiling light is a decided advantage. Quite often this
light is used while the car is being driven, if only to satisfy the vanity
of the owner. CHINA
A. Viola Smith, American Trade Commissioner, Shanghai
As a general rule, new cars in the Shanghai district of China are

equipped with bumpers, spare tire, and rear-view mirror. American
manufacturers equip their cars with more accessories than do Euro
29
pean manufacturers doing business on the market. A wide variety

of colors is preferred. Plated trimmings are also preferred. Mohair
upholstery is generally preferred on closed cars, which accounts for
approximately 70 per cent of all types. Battery ignition is preferred
except in remote interior centers, where servicing facilities are inad
equate and native drivers unskilled. Low road clearance is satis
factory in the treaty port of Shanghai, but for interior use high
clearance should be provided. The use of solid tires is discouraged
by heavy taxation. There is no marked preference for any one type
of wheel on passenger cars; approximately 40 per cent of those in
use are disk, 40 per cent wood, and 20 per cent wire. Wood or disk
wheels are preferred on trucks.
There is a demand for extra equipment in the form of bulb horns,
extra tail lamps, flower vases, ash receivers, cigarette lighters, etc.,
which are not supplied as original equipment by either American or
European manufacturers.
Wilbur K. Hoyt, Assistant Trade Commissioner, Mukden
The bulk of the cars sold in the three Eastern Provinces of China
are equipped with bumpers, spare tires, rear-view mirror, and an
arrow which can be illuminated at night to indicate the direction of
turning. The use of this indicator is compulsory in Mukden and
Harbin. Very few spotlights are sold, as night driving in the country
is not considered safe and they are not required for city driving.
Practically all of the passenger-car bodies are finished in colors
with plated trimmings. No one color predominates, but blue, green,
and brown are probably the most popular. Upholstery is divided
about equally between plush and leather. The most popular type
of passenger car is the 4-door, 5-passenger sedan. Most passenger
cars are equipped with battery ignition, although there is some senti
ment among Chinese in favor of the magneto type.
Louis C. Venator, Oſſice of American Commercial Attaché, Peiping
Body finish in North China is not extremely important, although

there is a noticeable popularity of colored cars with plated trimmings.
Closed cars with a large seating capacity are preferred. The magneto
system is still used on those cars that are going into the interior. The
speedometer may indicate miles. The Chinese unit of measure is
the li (approximately 4 mile), but most Chinese motorists think in
terms of miles when motor cars are concerned. There does not appear
to be preferences for any particular type of wheels, with the exception
of a slight preference for disk wheels on trucks.
(, hoseN
(". H. Stephan, American Vice ( onsul, Seoul
Complete standard accessories are required on all cars sold in

Chosen, in addition to others required by law. These latter include
dome light, mud splashers, and special tail light. The present tend
ency is for the purchase of closed cars with a large seating capacity.
The larger and better cars of prominent officials of the Government
and wealthy Japanese are all made with glass partition at the back of
the front seat shutting out the chauffeur.
30
HONG KONG
Harold Shantz, American Consul, Hong Kong
All kinds of accessories are in demand in Hong Kong. As a rule,

those cars imported from the United States satisfy in this respect,
whereas British cars are not usually equipped with accessories.
Bright-colored cars with exterior trimmings are popular. Approxi
mately 50 per cent of the cars in use are 5-passenger open cars.
The district contains many very steep grades. Accordingly, auto
motive vehicles equipped with a special gear ratio are in demand.
INDIA
Donald W. Page, American Trade Commissioner, ("alcutta
Approximately 80 per cent of the cars in use in India are closed

models, of which those having 5-passenger capacity lead. All acces
sories are popular, including bumpers, spare tires, spot lights, and
luggage carriers. Light-colored upholstery of leather or imitation
leather is preferred. There is an inclination toward the British
gasoline indicator, but at present this is not insisted upon. Wire
wheels are used to a considerable extent. It is estimated that 60 per
cent of the new passenger cars are equipped with wire wheels, 30 per
cent disk, and 10 per cent artillery. Steel-spoke wheels are preferred
on trucks.
IRAQ (MESOPOTAMIA)
Alexander K. Sloan, Arnerican Consul, Baghdad
Bumpers and rear-view mirrors are standard equipment on most

cars in Iraq. Spot lights are not widely used. Approximately 90
per cent of the cars in use are open. Light blue, maroon, and light
green are popular for the body finish. The upholstery is usually of
leather, with brown and grey the favorite colors. The road clearance
on all cars shipped to Iraq should be high. Wire wheels are pre
ferred for private passenger cars, artillery for taxicabs. Disk and
wood wheels are preferred on trucks.
JAPAN
Paul P. Steintorſ, American Trade Commissioner, Tokyo
From 85 to 95 per cent of current passenger-car sales in Japan are

for use for taxi or hire services. Nearly all must be equipped with
two extra seats in order to seat five in the tonneau. In order to do
this, the front seat is usually moved forward to provide sufficient
space. Colors are used almost exclusively, but they are of a sub
dued tone. Dark blue is the most popular, with shades of green
next. Maroon (or dark red) can not be used since it is used by the
imperial family.
Spot lights are used to some extent, and their use is increasing.
Stop lights are popular and are usually purchased if not included as
original equipment. The Japanese regulations require the installa
tion of the following extra equipment: A bulb horn in addition to
the usual electrical or mechanical horn, detachable mud splashers
attached to all four wheels, and the tail light so constructed that it
can not be extinguished from the interior of the vehicle. The mud
Splashers are of a special type and are always manufactured locally.
31
NETHERLAND EAST indies
Thomas (". Barringer, American Trade Commissioner, Batavia
Colored vehicles are the most popular in the Netherland East

Indies. Light-colored upholstery and plated trimmings are likewise
popular. At present the open car is distinctly preferred. Sales of
closed cars in 1929 were approximately 15 per cent of the total.
Gasoline gages should be in liters and speedometers in kilometers.
Standard American road clearance is satisfactory for local conditions;
all roads are asphalted or metaled. Wire and artillery wheels lead
in popularity on passenger cars. On the light trucks wood wheels
are more desired than steel spokes. Disk and wire wheels are
unpopular for trucks.
The Netherland East Indies is distinctly an American-car market,
American passenger cars representing S4 per cent of the market
and trucks 94 per cent. American cars, designs, and equipment are
the standards of public opinion.
PERSIA
Henry S. Villard, American Vice ('onsul, Teher, in
There is an overwhelming preference for passenger cars with a

large seating capacity, since the owner of an automobile usually
takes his family or friends with him when out riding. Open cars
considerably outnumber closed cars. This is partly due to the fact
that sooner or later most cars in Persia are placed in the transport
business, and it is comparatively easy to load the open car with
passengers and luggage.
In general, a colored body finish is preferred to plain black, but
green should not be used because it is regarded as a sacred color.
Accessories are very popular. High road clearance should be pro
vided on cars shipped to Persia. The British imperial gallon is used
by the leading gasoline distributor, and gasoline gages showing
imperial gallons are preferred. The speedometer should register
kilometers.
A special gear ratio is almost always necessary on trucks because
of the mountain ranges that are encountered in almost every trip
of any proportions. In the case of passenger cars a special gear ratio
is preferred, though not absolutely necessary.
PHILIPPIN E ISLAN IDs
("larence P. Harper, Assistant Trade Comini--ioner, M inil 1
There are no unusually automotive preferences in the Philippines

other than the right-hand drive. Right-hand drive is not required
by law, but it is preferred in view of the custom of traſlic keeping
to the left. Battery ignition is used on most cars, although many
trucks still use magnetos. Balloon tires are by far the most popular
on passenger cars and are becoming increasingly so on busses and
trucks. In the case of trucks, the demand is about equally divided
between pneumatic and solid tires, with a trend toward pneumatic
tires.
SYRI.A
D. F. McGonigal, American Vice ( ‘onsul, Beirut
Preference in Syria is for standard American equipment, but there

is little demand for accessories aside from bumpers. Colors and
plated trimmings are preferred. The present ratio of open cars to
closed is about 60 to 40, but the new-car preference is for closed cars.
Leather upholstery is most popular on open cars and soft fabrics for
closed cars. High road clearance is preferred because of the condi
tion of local roads. Solid tires have been prohibited by law.
AFRICA
In some African markets, such as Egypt and the Union of South

Africa, the equipment and construction preferences are similar to
those of any other well-advanced automotive markets.
However, other sections of the continent present such peculiar
conditions that particular attention must be given to the equipping
and construction of automobiles destined for use in those markets.
Sturdy construction and large seating capacity are important factors
in the sale of an automobile. Automobiles in Africa operate under
very trying conditions and are subjected to rough treatment. Large
seating capacity is preferred in most sections, especially for native
use. Overloading is common, and little attention given to the actual
capacity of the car.
Because of many poor roads and lack of bridges, high road clearance
is advantageous. Magneto ignition is preferred on cars that are to be
used in remote sections of the continent because of the poor facilities
for charging batteries. Bright colors are popular in most markets.
The upholstery is usually of leather or imitation leather, since the
humidity and dust make it difficult to keep fabric upholstery clean.
RULE OF THE ROAD AND DRIVE PREFERENCES IN AFRICA
‘ ‘ountry Drive preferences
Algeria --------------------------. Left-hand.

Angola... -- - - - - - - - - - - - - - - - - - - - - - - No preference.
Belgian Congo---- - - - -- . . . . -- - - - - - - - -
Left-hand.
I3ritish East Africa.-- - - - - Right-hand.
British West Africa- - - - - - - Do.
Canary Islands----- - - - - - Do.
Egypt - - - - - No preference.
French West Africa. . . Left-hand.
Gold Coast - - - - - - - - - - - - - - - Right-hand.
Madagascar--- -------...--- Left-hand.
Mauritius Right-hand.
Morocco.-- Left-hand.
Portuguese East Africa ... -- . . . . . . . . . . . . . . . Right-hand.
Tunisia---...--. . . .--. No preference.
Union of South Africa. Right-hand.
-"
PREFERENCES
Basic
AFRICAN
Construction
--
--
Wheels
Ignition
Country Passenger-car
types
clearance
Road
cars
Trucks
Passenger
closed
cent
per
70assenger-------...-
Battery----------
7 nd
5aLow-------------
Disk
ordinarily,
por
spoke.
steel
high
on
wire
cars.
price
Africa-
West
-British open
cent
per
60
spokes-
steel
Wire,
cars-
Do.
Egypt open----...-
cent
per
70
IDisk.
disk------
or
Wire
--
Ethiopia 5-passenger------
Closed
D
disk----|
and
Wood
isnd
a
k
steel
|
Sp0ke.
Africa.----------
West
French -------------------|
do-------------------
preference-----.
ipreſerence-----|
9No
About
nches----|
Disk,
wire------|
or
IDisk
-----
Morocco.--------------------- per
788
5p
touring,
attery---------
er
|cent
B|Bclosed,
attery---------
Disk
ordinarily,
Disk
High------------
Steel
and
roadsters.
cent
high-
on
wire
spoke.
t
price
|cars.
East
Portuguese
Africa------- -----
do-----------------do------------
open------------------------------
cent
per
60
do------------
----
----
wire.
and
Disk
1)0.
Tunisia---------------------- Magneto.-----...--.
bat-
and
agneto
|Mclosed.-------------------------
cent
per
95
Disk.
preference-----
No
0------------
-
-
tery.
Africa--------
South
of
Union high--|
to
Medium
5-passenger------
Closed
Disk
preference-...---
No
Battery---------
steel
and
Spoke.
PREFERENCEs
FINISH
AND
EQUIPMENT
AFRICAN
— =
: Tires
gauge
Speedometer
Gasoline
finish
Body
equipment
Accessory
I
Country
cars
Passenger Trucks
|
-------
-------
Metric----
iKilometers
closed
for
Black
mirror,
rear-view
wheel,
spare
Bumpers,
----------- --------
Balloon.-- Pneumatic.
Algeria-
hues
lighter
cars,
clock.
cars.
open
for
!---
Pº Miles------------
States-----
United
with
blue
inirror-----------
rear-view
tire,
Spare
Africa-
--West -
--------
British
| ------
Llating.
l-
-
Kilometers
others.
Metric
colors,
Bright
tires-
spare
with
Mandiniinuin,
--Fthiopia-------
others.
2-tone.
|
etric----...-----
M|and
dark
lack
Bilometers.-------
KiComplete--------
Egypt.------------ ----------------
------- -----------
closed
mod
for
plating.
els,
Bright----------
--------
-equipment------
-Original ------do--------
----- I)0.
----------do---- --------
Africa
West
French
wheel,
spare
.Bumpers,
. ..' do
--------...--
--
1.----do------...--
-with
Varied,
imirror,
rear-view --- I)0.
Morocco.-------...---
rack.
trunk
wiper, triin
nickel
|
inings.
Africa
East --.
Average--------- States.
nited
---
|UMiles-----...-
Colored.-------. Do.
Portuguese ...] I)0.
- -----
Tunisia- l re
tire,
spare
Buimpers, mirror---
-view black
not
I)ark,
-- -
Metric---- -Kilometers- §
.Africa
south
of
Ünion -----------
Standard-------
-- -------------. Conservative-----. m
d
iis
int
r
13
h -
Miles- I)0.
States.
U’nited
35
ALGERIA
Oscar S. Heizer, American Consul, Algiers
About 70 per cent of new-car sales in Algeria are closed models.

Black or subdued colors are preferred for closed cars, and lighter
shades of grey, blue, yellow, green (not too bright), and red are pre
ferred for roadsters and touring cars. Automobiles having the largest
seating capacity are the most popular. In this respect American cars
are said to be unpopular, whereas Furopean cars with folding seats are
greatly admired. The lights on American cars are considered weak.
Cars having four speeds forward are greatly liked, owing to the habit
of native drivers in traveling long distances at top speed.
The purchase of an automobile is a very important matter, and too
much importance can not be given to the execution of orders. Special
attention should be given to color and equipment specifications.
BRITISH WEST AFRICA
G. R. Willson, American Consul, Lagos
No unusual accessories are in demand in British West Africa, with

the possible exception of double-sounding or musical horns. These
are very popular with the natives. Plated trimmings are admired,
but do not stand up well in the climate, especially nickel or steel.
The general opinion of dealers is that leather or a good grade of imita
tion leather is preferred to any cloth fabric for upholstery. Fairly
bright colors are more likely to appeal to native buyers.
Five-passenger open cars are the most popular. The road clearance
for cars to be used for ordinary travel in Sierra Leone and Nigeria
should be about 9 inches. If the car is to be used in the interior, a very
high road clearance is essential. Wooden wheels do not stand up
well, since only wood of exceptional quality can give good results
under the alternate expansion and contraction caused by the usual
great humidity and the extreme dryness during the harmattan season.
The magneto system is almost universally preferred. Batteries are
usually thrown away when the original charge is exhausted. Owing
to the high cost of gasoline, cars having low gasoline consumption are
the most popular. British manufacturers cater to this preference,
and also to the demand for right-hand drive cars. In Sierra Leone
left-hand drive cars can be imported only upon consent of the Gov
ernment in each individual case.
J. Francis Foy, Assistant Trade Coimmissioner, Accra
Spare tires are always carried by local operators in the Gold

Coast; rear-view mirrors are compulsory by law; spot lights are
very seldom used. There is a decided preference for colored body
finishes, especially in the darker blues. Plated trimmings are in
demand. Preferences for upholstery in open cars run to dark brown,
light brown, black, and grey Spanish leather. In closed cars the
light brown, dark brown, and grey fabrics are preferred. The closed
car is gaining in popularity.
On account of the poor condition of the majority of roads in the
colony, a high road clearance is preferred; practically, all cars are
used in bush work, and high road clearance is absolutely necessary.
Magneto ignition is preferred. Solid tires are prohibited by law.
36
EGYPT
Charles E. Dickerson, American Commercial Attaché, Cairo
For cars in all price ranges the following equipment is desired in

Egypt: Bumpers, two spare tires, rear-view mirror, cigar lighter,
and bulb horn. With regard to the dashboard, the more complete
it is the better it is liked. Approximately 70 per cent of the cars
in the country are open models. Black and dark colors are pre
ferred for closed cars, light colors for open cars. In the medium
and high price classes plated trimmings are important, while in the
cheaper classes this factor is not essential, though preferred. Although
the liter gasoline gage is preferred, there is some demand for 4, 9%,
%, and full gage. |
The only noticeable preference which the American manufacturer

does not provide, and which an Italian car offers with some success,
is a large body on a low-power car, especially in the sedan models.
ETHIOPIA
Addison E. Southard, Aimerican Consul General, Addis Ababa
Bright-colored automobiles are preferred in Ethiopia, with red and

green particularly in favor; black or other somber colors should never
be used. Cloth upholstery of any type is much preferred to leather
or imitation leather. About four-fifths of the demand is for closed
cars. The law limits to five the number of people, including driver,
who may be carried in a car. There is, however, a tendency always
to crowd many more people into one car, as local owners are not con- |
cerned as to the damage which may be done to the car by overloading.
The metric gage for gasoline and a speedometer showing distance
in kilometers are preferred. Road clearance should always be high
because of the extremely poor roads, even in the cities. Magneto
ignition is preferred; facilities for charging batteries are very
inadequate. FRENCH WEST AFRICA
George C. Cobb, American Consul, Dakar
Most cars in French West Africa are equipped with bumpers,

spare tire, and rear-view mirror when sold, and little is added by
the purchaser. The preference as regards the body finish of pas
senger cars tends toward colors. Certain American cars which are
popular on the market have bodies finished in various neutral tones
with trimmings in more brilliant colors. Leather or imitation
leather upholstery is more popular than fabric, because of the diffi
culty in keeping cloth upholstery clean. European cars are imported
with magneto ignition, but the natives are learning the advantages
of battery ignition, and at the present time there is said to be no dis
tinct preference in this regard.
MOROCCO
Frederick K. Henrot in, American Vice Consul, Casablanca
Extra equipment is an important sales point in French Morocco.

Most European manufacturers equip their cars with trunks, and it
is believed that if American manufacturers did likewise it would
facilitate the sales of their products. At any rate, a trunk rack
should be provided. Individualistic colors are in demand, as pur
-
37
chasers do not wish to have a car of which a large number of similar

models are already in use. Closed cars account for about 88 per
cent of the sales. Large seating capacity is preferred. The road
clearance should always be high.
Horace Remillard, American Consul, Tangier
There are no local preferences of any kind in the Spanish and

international zones of Morocco. Nearly all American and Euro
pean cars are represented on the market and are accepted as delivered.
While spot lights do not appear to be imported in any quantity,
they would be useful to motorists, as the country is hilly and requires
excessive care in taking sharp curves. All registering apparatus
should be in the metric system. Road clearance should be high.
Wire and disk wheels are preferred on passenger cars, the artillery
type not being used. Steel-spoke wheels are preferred on heavy
trucks and disk wheels on light trucks.
PORTUGUESE EAST AFRICA
W. Quincy Stanton, American Vice Consul, Lourenco Marques
Light vehicles, both passenger and truck, lead in demand in Por

tuguese East Africa. There are very few good roads in the colony
except immediately around Lourenco Marques. In many respects
the topography is similar to the western part of the United States.
Ruggedness, power, speed, and high clearance are more important
than fuel economy, despite the high cost of gasoline. Heavy cars
and trucks are not in demand, as there are few bridges in the inte
rior; most of the creeks are crossed by fiords. A sudden tropical
rainstorm—a frequent occurrence—will swell a trickling rivulet into
a 3-foot flood in a half hour, so that light weight is an important
element.
TUNISIA
Charles B. Beylard, American Vice (’onsul, Tunis
Dark colors rather than black are generally preferred on closed

cars in Tunisia, which constitute 95 per cent of the demand. The
usual equipment on imported cars consists of bumpers, spare tire,
and rear-view mirrors. Spot lights, automatic windshield wiper,
and two different warning devices for town and country are desirable
equipment.
The magneto ignition is still popular, but batteries are now, more
common. There are still few charging stations to be found in the
interior, and cars destined for use there should be equipped with
magnetos. Gasoline is expensive, and European cars are preferred
somewhat, in that their gasoline consumption is lower than that of
American cars.
UNION OF SOU"TH A Firi ("A
Samuel H. Day, Arnerican Trade Cominissioner, Johannesbur:
There are no local preferences in the Union of South Africa which

the American manufacturers do not cater to. The American car is
the standard. Ninety per cent of the cars sold are closed models, of
which 85 per cent are 5-passenger vehicles. , Dark, conservative
colors are preferred. Leather upholstery is preferred, even in closed
cars. The reason why the percentage of leather-upholstered vehicles
38
is not greater is wholly that one American make of automobile is

unobtainable except with cloth upholstery. A sale is often lost because
leather upholstery can not be supplied without extra cost.
The equipment of American cars is very satisfactory. Right-hand
drive should be provided on all cars shipped to South Africa. There
is no definite preference for any particular kind of wheel on passenger
cars. The heavy disk and steel-spoke wheels are preferred on trucks.
Pneumatic tires are the choice of every type of gasoline truck. The
only use for solid tires at the present time is on the steam wagon, a
number of which are in operation.
OCEANIA AND HAWAII
A very large percentage of the cars in use in the principal markets

of Oceania and Hawaii are of American origin. The latest models
of American cars are known to the car-buying public almost as soon
as they are announced in America, and care must be exercised not to
ship cars that will be out of date when they arrive at their destina
tion. The outstanding preference, other than the usual American
standards, is for right-hand drive. This is due to the fact that the
rule of the road is to the left in Australia, New Zealand, and smaller
British islands.
In the French possessions the metric system is in use, and the
gasoline gauges and speedometers should be so arranged. . In the
British possessions, the gasoline gages should register British imperial
gallons. The United States gallon is the standard in American
Samoa.
RULE of Tii F. RoAD AND DRIVE PREFERENCEs IN OCEANIA AND HAwaii
Country Rule of road - IDrive preference
Australia---------------------------- Left--------------. Right (left-hand drive prohibited in some

localities).
I,eft-hand.
--- Right-hand.
Fiji Islands - No preference.
§
. lwire-
some
Wood,
WCAlHigh------
s-BBattery---
ouateds-eood,
tr-yla- -is-ap-o-k-e-. 8lOod,
c-
Cent
per
Sosted.e-l-5
s-po-ke- .
Fº
BO.
-W.
º
md
andnetoI
disk--
wire,
Wood,
inches.
9%
aattery
gpen - -k
-
-
t| eel
--------
-
ZedläIlCl-
©W
Trucks
cars
Passenger
Trucks
cars
Passenger
|
isltanesd - le-n-sr
Sea
South
o
5
pClosed,
S7
; gp-eor-ks-e-.
Ignition
Whoels
|
CoRnEsFtErRuEcNtCiEosn
PBasic
HAWAIt
AND
OCEANIA
IN
--
—-
—
-l—!
– -
--
--
º
PaCountry
types
s enger-car
---
---
-
--
--
-
-
~）.
40
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41
AUSTRALIA
Charles F. Baldwin, American Trade Commissioner, Sydney
In general, the preference for accessory equipment on motor ve

hicles in Australia is practically the same as in the United States,
with the exception of certain of the newer type of accessories, such as
turning lights, etc., which are not widely used. Since the develop
ment of the domestic accessory-manufacturing industry, a great
many of the accessories on cars sold in Australia are manufactured
in the Commonwealth. This is true of bumpers, spare ties, luggage
carriers, sun shields, etc. Spot lights are not in wide use.
The variety of body colors on automobiles is less than in the United
States. Within recent years there has been some tendency toward
an increasing use of brighter colors and, on higher priced cars, of a
multicolor effect. The upholstery is usually in harmonizing colors
with the body. Imitation-leather upholstery, either figures or plain,
is most widely used.
Closed cares are in greater demand than in the past. It is estimated
that 95 per cent of the cars in the class above £500 are of closed
models. In the class ranging from £350 to £500 approximately 65 per
cent of the sales are closed types. The 5-passenger cars are greatest
in demand, although there is a large sale of roadsters, both with and
without auxiliary seats, and of closed and convertible coupés.
Most chassis imported from the United States are equipped with
United States gasoline gages, and these are used in spite of the fact
that the imperial gallon is the standard of measure. When replace
ments are made, the British gage is usually preferred.
Local preferences are well catered to by American manufacturers,
and the success of American cars is attributable, to a considerable
extent, to the willingness of American manufacturers to conform to
Australian requirements where those requirements are different from
those in the United States. In the case of the preference for high
road clearance, the American car was eminently suitable for Australian
requirements, whereas the English and Continental cars were generally
unsuitable.
42
NEW ZEALAND
Julian B. Foster, American Trade Commissioner, Wellington
Bumpers, spare tires, rear-view mirrors, and other accessories are

practically all fitted on cars in New Zealand. Very few spot lights
are used. Bright-colored vehicles are exceedingly popular. Multi
colored cars are also popular. Light upholstery in preferred. When
leather upholstery is used, it should be in harmonizing colors with
the body and of a soft and pliable nature. It is claimed that the
leather upholstery used by American manufacturers is hard, and that
the local preference for soft leather is being catered to by British
manufacturers.
About 15 per cent of cars are open and 85 per cent closed. The
sedan models are the most popular. As a rule, imported vehicles
have gasoline gages which are standard in the country of origin,
American cars now in operation usually are equipped with a United
States standard gallon indicator. The use of disk wheels is decreas
ing. Artillery wheels are the most popular for passenger cars,
although wire wheels are being increasingly seen. Wood and steel
spoke wheels are the most popular for trucks.
FRENCH OCEANIA
William P. Garrety, American Consul, Tahiti
Approximately 90 per cent of the cars in operation in French

Oceania are open touring cars. These cars are equipped with the
usual standard equipment, such as bumpers, rear-view mirror, etc.
Spot lights are prohibited by law. The general preferences in color
are for multicolored cars, of dark blue and black. The upholstery is
usually of dark leather.
All the cars in use, with the exception of one make, have a speed
ometer in kilometers. Motor vehicles have gasoline gages of the
same type as are used in the countries of origin. A road clearance
of 9% inches is entirely satisfactory.
SOUTH SEA. ISLANDS
Quincy F. Roberts, American Consul, Suva
The Fiji Islands, American Samoa, Gilbert and Ellice Islands, Solo
mon Islands, and Tonga are island groups where road conditions
and distributing methods for automotive vehicles are much the same.
About 33 per cent of the cars now being imported are closed models,
and by the end of 1930 it is believed that 50 per cent of the cars in
use will be closed. Colors with plated trimmings are preferred by local
purchasers. Leather upholstery is the most popular, but textiles
are used in the cheaper cars.
With the exception of American Samoa, these colonies and island
groups use British imperial gallons. In American Samoa the Ameri:
can gallon is the unit of measure. Consequently, exporters should
ascertain where the car is to be operated in order that the correct
gasoline gage be used.
O

William L. cooper, Director
TEEGETWEB
||| JUN 12 1930
|l b. s. U. LIBRARY
AIRPORTS
IN LATIN AMERICA
| 2.85 UNITED STATES
9.656 GOVERNMENT PRINTiNG OFFICE
WASHINGTON : 1930
For sale by the Superintendent of Documents, Washington, D. C. - - - Price 10 ce.

FOREWORD
Commerce and industry continues to demand greater speed in

passenger movement, in the transmission of written messages, and
in the transportation of valuable and perishable goods. The world's
network of airways has spread to every continent and developments
in this respect have been particularly gratifying in South America.
It is connected with the United States and Canada by several air
lines and with Europe by a combined service of aircraft and fast
steamers.
Our entire business community is concerned with the growth of
aeronautical activities in Latin America, where there are some 44,000
miles of air lines in regular, scheduled operation and some 375
civil aircraft in use. These developments have come largely since
the beginning of 1926 and are certain to be continued in increasing
importance.
This bulletin is devoted to airports, landing fields, and weather
conditions in Latin America. It has been prepared with the hope
that it will be of value to the aircraft industry. Representatives
of the United States Government as well as of the air-transport
organizations have contributed much of the information it contains,
and an effort has been made to limit it to the most accurate data
available. It will be revised and extended from time to time as new
developments and new conditions arise.
CLARENCE M. YoUNg,
Assistant Secretary of Commerce for Aeronautics.
MAY, 1930.
(II)
AIRPORTS IN LATIN AMERICA
By J. Warren Angle and Brower V. York, Aeronautics Trade Division
There are approximately 44,000 miles of airways in regular opera

tion in Latin American countries. This mileage is more than three
times that of IDecember, 1928, and most of that mileage was inaugu
rated after January 1, 1926.
There are some 375 civil aircraft in Latin American countries,
and more than half of these are employed in regular air-transpor
tation services. Considerable numbers of these planes are owned by
flying clubs and a few by individuals and governments.
Prior to 1926 the regular air services used seaplanes, and no
extensive terminal facilities were prepared. Until recently most
of the planes employed in regular services, as well as those owned
by flying clubs and individuals, were small and did not require well
prepared landing fields as much as do the large planes now in use.
Flying was sporadic and enjoyed by only a few people. There was
no considerable demand for well-equipped airports.
A few airports were developed to a degree by flying clubs and
by governments for the use of civil planes. Government authorities,
both military and naval, in many of the countries provided military
landing fields, at which there were set up shops and other facilities
considered essential. With the introduction of more regular services,
some of the operating companies have prevailed upon their govern
ments to provide landing fields and airports, while other companies
have provided terminal and route landing facilities of their own.
A few landing fields and more or less developed airports have been
provided by municipalities and States, but the trend is toward their
provision by national governments, operating companies, and flying
clubs.
Climatic conditions have proven to be an important factor in
the preparation of landing facilities throughout the area. In the
more tropical regions where frequent and heavy rains and consequent
thick vegetation and scattered business communities exist. there has
been less flying, while Mexico, Cuba, the southeast coast of Brazil,
the western plains of Peru, and most of the territory of Chile and
Argentina have seen more flying and more airport and landing
facilities developed. Since there is need for quick communication
between the distant communities in the tropical areas, as well as
those farther south and north, it is expected that landing grounds
and airports, as well as highways and railways, will be prepared.
The rough nature of the country proves a hindrance in the prepa
ration of airports as well as highways. …”
The introduction of regular air services across the Andes between

Chile and Argentina, around most of the coast of South America,
(1)
2
and through the West Indies, Mexico, and Central America has caused
the preparation of more or less well-developed landing fields and air
ports. The long distances between important business centers must be
bridged, and, even for aircraft, considerable time is required. Fa
cilities for refueling and occasionally minor repairs are essential.
It is expected that the provision of airports, which has taken place
within the last six months and is gaining momentum, will cause
increased local flying, the constant improvement of present airports
and landing fields, and the provision of others in large numbers.
There is a scarity of weather information, and fliers should make
every effort to secure all such information that can be had. Over
certain areas of Latin America the weather is practically constant.
In others it changes regularly, and in some there is uncertainty.
The Brazilian Government maintains a central meteorological office,
from which information on the weather covering most of the coastal
region is disseminated daily. The National Observatory and the
observatory of the college at Belen report on conditions in Cuba.
The Government of Mexico provides weather information from
Mexico City. The Central Meteorological Office of Chile, the As
tronomical, Observatory of Ecuador, the Central Meteorological
Office in El Salvador, the meteorological station at Santo Domingo
in the Dominican Republic, and the Gagigal Observatory in Vene
zuela are other agencies which would be helpful. Some operating
companies are providing radio stations which disseminate weather
information for aircraft. Agents of the regular operating com
panies probably would assist individual fliers whenever possible in
giving them information about stores of fuel, oil, and spare parts
and weather data, etc.
Before flying to or through Latin American countries one should
make application through the Department of State, Washington,
D. C., which will request permission from the government authorities
in the countries over which the flight is to be made. If all the docu
ments regarding the qualifications of the personnel and the airworthi
ness of the plane, required in the United States, are carried, and if
efforts are made to comply with the existing regulations in each coun
try, it is not believed that any difficulty will be encountered. Several
Latin American countries have detailed regulations, but they have
not proved to be burdensome to those willing to conduct their flights
as they would at home. . Customs formalties are not troublesome to
those who will inquire of American consular offices and seek to meet
all requirements.
There are several modern and large cities in the countries south
of the United States, and living expenses generally are high. Differ
ences in languages and customs of the people should be borne in
mind. Airports, travel facilities, and other conditions encountered
will not be exactly as at home.
The available information on landing fields and airports listed
according to cities and countries is compiled from every known
reliable source of information and is believed to be accurate.
ARGENTINA
The climate of Argentina is moderate, with variations, and health

ful. Summer comes in December, January, and February. In the
3
far north it is warm, while in the far south the temperature never
goes above 48° F. The central coast region has an abundant rain
fall, and an average temperature of 63°. Buenos Aires has sea
breezes at night and from the west by day during the summer.
Gales are frequent throughout the year. The central region has
abrupt and frequent changes. The summer is hot and wet. Frosts
occur in the dry winters. The Andes Mountains prevent rain in
parts of the south. The terrain of Argentina approaches the ideal
for flying, since large parts of the country are level.
Argentina, like most other countries south of the United States,
has great natural resources, and it is a rapidly developing country.
The government and the people are favorably interested in the
development of commercial aviation.
Bahia Blanca, Buenos Aires Province.
This field, which is 3,280 by 4.264 feet in area, is located 2% miles
northwest of the city of Bahia Iłlanca and 397 miles southwest from
Buenos Aires. The latitude is 38° 42° south and the longitude 62°
17’ west and the altitude 63 feet. The airport is owned by the Bahia
Blanca Aero Club. The surface is sandy, with natural drainage,
and level. There is a standard 100-foot white circle and a wind
cone. The surrounding country is level and there are no obstruc
tions. , Hangars (corrugated steel) for 12 small planes, small repair
shops, and supplies of fuel, water, and oil are available. Telegraph,
telephone, and radio services are available. There are no fogs ex
cept in winter. The temperature averages 59° F. and does not
go below freezing or over 104° F. A training school is operated,
and the airport is open to all planes.
Buenos Aires, Buenos Aires Province—New Port Airport.
A new field 1,500 by 2,130 feet in size has been prepared on
reclaimed land between the city and the Plata River in the New
Port section, by the National Government. The spot is at 30° 36'
south by 58° 22′ west at about sea level. The ground is level, but
there are no markings. It lies between a railway terminal and the
port of Buenos Aires. Telegraph wires and fences are being re
moved. There are no hangars, fuel supplies, nor repair facilities,
since the field is used only for handling passengers, mail, and goods.
Communication facilities are at hand. Fogs occur only in winter
and not after 9 a. m.
Castelar, Buenos Aires Province.
This airport of the Centro de Aviacion Civil lies in the town of
Castelar, 15 miles west of Buenos Aires, and measures 1,320 by
1,650 feet. The surface is level and marked by a standard 100-foot
white circle and wind cone. A railroad lies to the south. The sur
rounding area is open and level. Fogs occur only in winter and be
fore 9 a. m. There is a hangar, corrugated-iron covering, 65 by 130
feet, and supplies of fuel, oil, and water are to be found. There
are good communication and local transportation services. A small
workshop is in operation. Club flying and a training school are
carried on, and the field is open to all planes.
Concordia, ‘Entre Rios Province.
The Aero Club Concordia owns a field 2,624 by 2,952 feet, 3%
miles north of Concordia. The surface is not completely condi
tioned. There is one hangar.
Cordoba, Cordoba Province.
The Cordoba Aero Club has a field at 31° 25' south by 64° 11’
west, 2% miles from the railway station at Cordoba. The slop
ing field measures 1,305 by 1,650 feet and has a standard 100-foot
circle and wind cone and is without obstructions. The surrounding
country is rolling. The temperature seldom goes below freezing,
rises to 109° F., and averages 64° F. Fogs are rare and occur only
in winter. There is a hangar for six small planes, together with com
munication and highway transportation facilities, but there is no
repair shop. Fuel, oil, and water are available.
Fisherton, Sante Fe Province.
The Rosario Aero Club owns an airport measuring 1.950 by 2,295
feet at 33° 0' south. 50° 30' west, at Fisherton, 3 miles east of the city
of Rosario. There is a 100-foot white circle on the level field which
is further marked by a wind cone. There are no obstructions, and
the country is a flat agricultural area. There are two hangars
(corrugated iron) for six planes each, supplies of fuel, oil, and water,
communication and highway transportation facilities, and a repair
shop. The airport is used for club flying and training and is open
to all 1)lanes.
Junin, Buenos Aires Province.
The Junin Aero Club has an airport 2% miles east of Junin. The
field measures 1,300 by 2,300 feet. There is a hangar.
Los Tamarindos, Mendoza Province.
The airport of the Mendoza Aero Club is at 32° 53' south, 68° 45'
west, at Los Tamarindos, 21.2 miles north of Mendoza. The level
field measures 1,968 by 1.968 feet and lies 2,800 feet above sea level.
It is marked by a 100-foot white circle and a wind cone and is with
out obstructions. The surrounding area is flat, devoted to grape
growing. The temperature is variable with extreme heat and cold
in summer and winter, respectively. Rainfall averages 8 inches a
year. Fogs are rare. Winds are variable. There are two 6-plane
hangars, supplies of water, fuel, and oil, repair shops, and communi
'ation and transportation facilities. The airport is used for com
mercial purposes, club flying, and training.
Mar del Plata, Buenos Aires Province.
This field, owned by the Government, lies at 38° 2' south by 57°
39’ west, 50 feet above sea level, 3 miles west of Mar del Plata on the
coast line and 18.5 miles southeast of Buenos Aires. The L-shaped,
level field adjoins a race track. There are no markings nor obstruc
tions. The land near by is level. The temperature varies between
freezing and 104° F. and averages 59° F. Fogs occur in winter.
There are strong south, southeast, and northwest winds. There are
no hangars nor repair shop, but fuel, oil, water, and communication
and transportation facilities are available. The field is used for
regular air services.
Marquesada, San Juan Province.
The Marquesada Aero Club has a partially completed field 2.296
by 1,312 feet, with one hangar.
Palomar, Buenos Aires Province—El Palomar.
This military field lies at 34° 40' south by 58° 35' west, 76 feet
above sea level, at Palomar, 17 miles northwest of Buenos Aires.
5
It measures 6,186 feet east and west by 4,923 feet north and south
and is slightly rolling. A standard 100-foot white circle, a wind
cone, and a luminous T mark the field, which has a railroad and
telephone lines to the north. The temperature seldom reaches freez
ing and goes up to 105° F., averaging 60° F. Fogs occur occa
sionally in winter and never after 9 a. m. There are 10 concrete
hangars. Six measure 82 by 98 feet and four 98 by 164 feet.
Excellent repair work is done at the concrete, well-equipped work
shops. Fuel, oil, water, military quarters and mess, and communi
cation facilities are available. The field is open to civil planes upon
request before a visit.
Presidente Rivadavia, Buenos Aires Province.
The Argentine Aero Club has rented this field from the Govern
ment. The field measures 2,625 by 3,282 feet and lies 72 feet above
sea level at Presidente Rivadavia, 11.4 miles southwest of Moron and
13 miles from Buenos Aires. The level field has a 100-foot white
circle and a wind cone and no obstructions. Temperature conditions
are like those given for other Argentine airports. There are two
hangars (corrugated iron), one 63 by 47 feet, belonging to the club,
and the other 63 by 63 feet, owned by the Government. There is a
shop, and some equipment is stocked. Gasoline, oil, and water and
communication and transportation services are available. The field
is available to all planes and is used for club and training purposes.
Puerto Belgrano, Buenos Aires Province.
This seaplane and landplane base of the Argentine Navy lies at
38° 53' south and 62° 6' west at Puerto Belgrano. The field is
level, measures 2,300 by 2,600 feet, and is marked by the standard
100-foot white circle and wind cone. Neon lights are expected to be
installed. Obstructions are: To the north, eucalyptus trees 32 feet
high: to the east, telephone line and eucalyptus trees; to the south.
telephone lines, trees, and buildings 32 feet high and chimneys 130
feet high; to the west, eucalyptus trees, buildings, and antennae of
radio station; and to the northwest, buildings 100 feet high. Near
by are forests, three petroleum tanks, and a port. The average
temperature is 59° F. Variations are between freezing and 104° F.
Northwest winds of average force blow continuously. Fogs are rare
and occur only in winter. Two 7-plane hangars (corrugated iron),
fuel, oil, and water, complete repair shops, adequate hotel accom
modations, and communication and transportation facilities are
available.
Rafaela, Santa Fe Province.
This field, located 3 miles east of Rafaela, 315 miles northwest
of Buenos Aires, measures 1,200 by 2,300 feet and has one hangar.
Resistenoia, Chaco Territory.
Located one-quarter mile southwest of Resistenoia, this field meas
ures 1,650 by 1,950 feet. There is one hangar. The Resistencia Aero
Club is owner.
Saenz Pena, Chaco Territory.
This field of the Saenz Pena Aero Club lies one-fourth mile east
of the city and measures 1,650 by 1,950 feet. There is a hangar.
Salta, Salta Province.
This field, 1,320 by 3,000 feet, with one hangar, lies north of the
city and is owned by the Salta Aero Club.
San Fernando, Buenos Aires Province.
Lying 19 feet above sea level at 34° 26' south and 58° 30' west,
one-half mile south of San Fernando and 15 miles southwest of
Buenos Aires, this field measures 1,260 by 1,650 feet. It is marked
by a 100-foot white circle and wind cone. There are no obstacles,
and the country near by is flat. The level surface is sodded. Weather
conditions are like those described for other Argentine landing fields.
There is a corrugated-iron hangar 122 by 62 feet. Fuel, oil, water,
a small repair shop, and communication and transportation facili
ties are available. The field is used by privately owned planes.
General Pacheco Field.—Owned by the French company Aero
postale, this airport is located 344 miles northwest of San Fernando,
18 miles from Buenos Aires, is level, measures 4,275 by 4,950 feet, and
marked by a 100-foot white circle and wind cone. Lighting equip
ment is installed. A radio antenna stands northeast of the airport,
which is surrounded by level country. Two hangars of corrugated
iron measure 98.5 feet by 131 feet each. Fuel, oil, and water, well
equipped shops, and good communication and transportation facili
ties are available. The company’s cars carry passengers between
the airport and Buenos Aires.
Santiago del Estero, Santiago del Estero Province.
This 1,968 by 2,300 foot field, owned by the Santiago del Estero
Aero Club, lies at 27° 43' south and 64° 23' west, 2 miles southwest of
the city of Santiago del Estero. The clay surface is level. A stand
ard 100-foot white circle and a wind cone mark the unobstructed
field. The temperature never goes as low as freezing, rises to 110°
F., and averages 65° F. There is little rainfall, and fogs are rare.
Hot, northeast winds blow in September and October. A galva
nized-iron hangar for 12 planes was constructed recently. Two other
hangars for five planes each are placed by the central building. The
ground floor of the central building contains a mechanics' repair shop,
sleeping quarters for transient pilots, dining room, first-aid room,
an infirmary, library, etc. The second floor has meteorological and
aerial-photography offices. Fuel, oil, and water and transportation
and communication facilities are available. As at most other Argen
tine airports and landing fields, these consist of telegraph, tele
phone, and radio facilities and near-by railroad and highway.
This field is used for club, training, and commercial purposes.
Tucuman, Tucuman Province.
This field of the Tucuman Aero Club lies 26° 4' south and 66°
2' west, measures 1,312 by 2,296 feet, is level, and is marked by a
100-foot circle and wind cone. There are three runways on the
field, which is surrounded by a racetrack. Fogs are rare; rains
are abundant in spring and summer. Two corrugated-iron hangars,
fuel, oil, and water, and good communication and transportation
facilities are available. There are no repair facilities. #. field
is used for instruction, club, and commercial flying.
7
Veronica, Buenos Aires Province—Punta Indio Station.

Measuring 7,221 by 5,250 feet, this field of the Argentine navy
is located at 35° 28′ south and 57° 20' west, 5 miles north-northeast
of Veronica and 10 feet above sea level. The almost level field is
marked by a 100-foot circle and wind cone. Neon lights are planned.
The surrounding land is level, but radio towers 98 to 130 feet high
are near the east side. Six 9-plane corrugated-iron hangars, ade
quate shop facilities, fuel, oil, water, adequate hotel accommodations,
and communication and transportation facilities are available.
BOLIVIA
The chief physical feature of Bolivia is the vast central plateau,

over 500 miles in length and at an average altitude of 12,000 feet.
The plateau lies between two great chains of the Andes Mountains
which traverse the country from north to south. Three peaks reach
over 21,000 feet. In the north the table-lands slope toward the
Yungas River, and in the east there is a precipitous slope to the
low “hot lands.” There are over 5,000 miles of navigable rivers.
The rainy season extends from December to May and the dry season
from June to November. Temperatures vary among the hot, tem
perate, and cold regions. The prevalence of thick clouds over the
broken country bordering the eastern edge of the high plateau is
extremely dangerous for flyers.
The Government is especially attentive to the development of
commercial aviation.
There are 17 Government landing fields, as follows: La Paz, Chua,
Apolo, Tipuani. Oruro, Uyuni, Potosi. Sucre, Villazon, Tarija, Villa
Montes, Charagua, Yacuíba, Saavedra, Concepcion, San Ignacio, and
San Miguel.
Commercial fields, numbering 18, are located as follows: Cocha
bamba, Mataraini, Mizque, Aiquile, Omorque, Salpina, Totora, Pul
guina, Santa Cruz, Puerto Suarez, El Palo, Vallegrande, Valle
Abajo, Jorochito, Trinidad, Todos Santos, and Santa Ana.
The Alto military airport of La Paz is at an elevation of 13,500
feet and has a large flat field. The terrain is very rocky and makes
landing dangerous.
BRAZIL
Brazil, the largest republic in South America, is larger than the

United States, England, Ireland, Scotland, Wales, the Netherlands,
Portugal, Switzerland, and Begium combined. There are about
nine people per square mile, and the coast line is 4,000miles. Two
thirds of the people live on the cool eastern plateau between Pernam
buco and Rio Grande do Sul.
The Amazon River Valley is a tropical area in which there are
over 30,000 miles of navigable waterways. The northeastern section
of the country is similar to part of our Cotton Belt. The Matto
Grosso section is like our midwestern cattle-raising districts. The
climate is diversified, and in the more thickly populated part of
the south it is agreeable. Brazil is mostly i. the Torrid Zone,
but considerable areas have climate much modified by bodies of
11250.9—30—2
8
water, high table-lands and mountains. As in most Latin American

countries, winter is the wet season and summer the dry—that is,
with but moderate rainfall. The seasons are the reverse of those
in the United States. The precipitation is heavy along the coast
and lessens progressively westward. There are fogs along the pre
cipitous slope from the coastal plane to the higher interior table
lands. The temperature is high along the north coast, but farther
south it is pleasant.
Brazil is actively developing air transportation. Competition
among transportation companies endeavoring to get a foothold in
what promises to be a profitable field, activities of both naval and
military missions, continued advertisement on the part of the press,
and a Government sensitive to the pulse of economic progress and
needs have given Brazil an auspicious start in aeronautics. The
urge for commercial aviation has been hastened and already
appreciable results are shown.
The existing fields and airports are mainly scattered along the
coast.
Bahia, State of Bahia.
Santo Amaro Field.—This field is located north of the city at
13° 1' south and 38° 28′ west, slightly above sea level. It measures
3.280 to 1.968 feet and is usaully preferred to the Cammassarie Field.
('ammassarie Field.—Cammassarie Field is owned and operated
by the Aeropostale company and is located at 13° 1' south and 38°
28° west at sea level. The field measures 2,624 by 1.968 feet, and is
equipped with hangar, wireless station, and shops. This field, how
ever, is considered unsatisfactory, largely because of the rough
terrain.
Belmonte, State of Bahia.
The Compagnie Générale Aeropostale has constructed an emer
gency field at Belmonte, a small port 180 miles south of Bahia;
an airport near the city of Aracaju has been authorized for the use
of this company.
In 1928, the Bahia State Senate authorized the State Government
to build an airport at Bahia. This is understood to be the municipal
airport.
Bello Horizonte, State of Minas Geraes.
The landing area in the State fair grounds is reported as being
fairly smooth; the long axis is approximately 900 feet, the short
axis less than 200 feet. A hangar, with dimensions 46 by 36 feet,
has been built. There are some obstructions in the nature of
telephone poles and fences in the vicinity.
Campos, State of Rio de Janeiro. e
An area on the outskirts of the city of Campos is suitable for land

ings. This is a small field, and little work other than that necessary
in the way of leveling, has been done. This area was prepared in
order to accommodate the planes of the Empreza Transportes Aerias.
This local company initiated air services some months ago between
Rio de Janeiro and Campos, and Rio and Sao Paulo. These services
are suspended.
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9
Caravellas, State of Bahia.

This is a field for land planes near the town of Caravellas north
of Victoria. It was constructed by the Aeropostale company. The
long axis of this field is 3,872 feet and the short axis approximately
1,968 feet. The prevailing winds are from northeast to southwest.
The field is equipped with hangars and other necessary facilities.
The Condor Syndicate is building a port for seaplanes in the harbor.
Cannavieiras, State of Bahia.
The Aeropostale company maintains a field at Cannavieiras on the
coast, at 15° 45' south and 38° 20' west, at sea level. The field is
described as being 0.6 mile square and is used at present as an emer
gency landing field.
Florianopolis, State of Santa Catharina.
The Compagnie Générale Aeropostale owns and maintains a land
ing field on the island adjacent the city of Florianopolis, which is
connected to the mainland by bridge. The location is given as lati
tude 27° 36' south and longitude 48° 30' west at sea level. The
field is at the south end of the island and measures 2.7SS feet by 2.296
feet. The surface is rough and uneven. Hangars, shops, equipment,
and wireless facilities are available.
The Condor Syndicate maintains a seaplane base at Florianopolis
as a port of call. A small supply of equipment and sundry facilities
is available.
Ilheios, State of Bahia.
Ilheios is at 14° 48' 33’’ south by 39° 1' 20" west at sea level. The
Aeropostale line operates a field there measuring 3,280 by 1.640 feet.
The field is being developed and, when completed, will be good.
The Condor Syndicate is building a seaplane base which will be
completed shortly.
Jaguarao, State of Rio Grande do Sul.
The Aeropostale company owns and operates a landing field
located at Jaguarao, on the northern margin of the Jaguarao River,
which forms the international boundary between Brazil and U'ru
guay. The location is given as latitude 32 45° south by 53° west,
slightly above sea level. The field measures 2,624 feet by 1.968 feet,
is slightly inclined, and is in good condition. It is used, hºwever, as
an emergency landing field.
Laguna, State of Santa Catharina.
Sufficient docking space for seaplanes is provided at Laguna.
Maceio, State of Alagoas.
The airport at Maceio is owned by the Compagnie Générale Aero
postale. It is located about 7 miles west of the town at 450 feet
above sea level. The exact location of the field is 9° 39' south by
35° 42° west. The field forms a square 2,624 feet on each side. It
has a flat, grassy surface and is well drained. The officials of the
company using the field daily claim that it is in good condition. It
has one corrugated-iron hanger, and two or three mechanics are
on hand regularly, so ordinary repairs can be made. Gasoline and
oil are suplied from the town. As in the case of the other Aero
postale fields which are in regular use along the I3razilian coast, it is
equipped with electric lights and searchlights.
10
Marahu, State of Bahia.

This landing field is located 14 miles up the Marahu River at 14°
20' south and 38° 20' west. The field measures 2,952 feet by 2,296
feet. The surface is good.
Natal, State of Rio Grande do Norte.
The field at Natal is called the Campo de Aviacao and is owned by
the Compagnie Générale Aeropostale. It is situated about 15 miles
southwest of Natal at Parnamirim, 5° 5'4" south and 35° 14′ west.
The field is 3,280 feet square and is flat and sandy. Hangar and
radio facilities are available. It is reached by railway or motor.
The Aero Club at Natal also has a small field alongside its build
ing not marked and not illuminated at night.
State of Para.
There are no regular established landing fields north of Natal,
the northern terminus of the Aeropostale line. There are numerous
stretches of beach between Natal and Para where emergency landings
could be made, but owing to the scarcity of towns in that district,
it would be practically impossible to make repairs or secure fuel
readily, unless the landing were made near one of the few towns in
that section. No airports of any kind exist in the Amazon district,
nor along the coast from Para to Natal, but, owing to the vast net
work of streams, this territory is considered to be ideally adapted
to use by seaplanes.
Paranagua, State of Parana—Condor base.
In the port of Paranagua, the Condon Syndicate has built a pier
at which its planes land. The right to use this location was ceded
to the syndicate by the municipal government of Paranagua. A
project of the same government to build a land field near Paranagua
has not been carried out.
Pelotas, State of Rio Grande do Sul.
A field 2,624 by 2,624 feet square is equipped with one hangar,
constructed of metal, 86 by 98 feet, with a housing capacity for 6
planes. There are also warehouse, machine shop, office, pilots’ rest
rooms, restaurant, quarters for personnel, wireless station, and
modern lighting system. The wireless transmission towers are 100
feet high. The field is connected with the city by telephone. The
Condor company also maintains facilities at Pelotas }.
seaplane
landings.
Porto Alegre, State of Amazonas.
A large airport constructed on the Ilha Grande dos Marinheiros,
opposite Porto Alegre, has recently been put into operation. The
equipment consists of machine shops, fuel deposits, houses for pilots,
a large hangar, and a landing dock.
Porto Alegre, State of Amazonas—Campo Gravatahy.
This is a military field located about 8 miles from Porto Alegre.
There are accommodations for 6 planes and facilities for making
minor repairs. It is used as a landing field by the Latecoere
company. The field is reported to be in excellent condition.
Rio de Janeiro, State of Rio de Janeiro.
The Compagnie Générale Aeropostale operates a landing field at
Jacarepagua, a suburb, about 9.5 miles west of Rio de Janeiro and 5
11
kilometers inland from the coast. The location is given as 22° 40'
south by 43°20' west at sea level. The field is triangular in shape,
roughly 2,624 feet by 2.296 feet. The land is low, and parts of the
field are frequently under water, but the surface is usually solid and
affords good landing. Wireless, hangars, shops, and supplies are
reported available. The field is connected with the city by means of
an excellent highway. -
Campo dos Affonos.-This field is located at 22° 38' south and 43°
25' west. It is a military station situated 12 miles west of the city of
Rio de Janeiro and south of the railroad station of Marechal Hermes,
51 feet above sea level. Is is connected with the capital by the
Central Railroad of Iłrazil and by the Rio-Sao Paulo highway.
Workshops, hangars, garage, refueling facilities, meteorological
station, air pump, wireless station, and other modern facilities are to
be found on this field. The contour of the field is irregular, the
long axis being 5,600 feet and the short axis 2,800 feet. There are
five hangars housing some 60 planes.
Campo de Galeão.—This field is located at 22° 48' south and 45° 13'
west in the southwestern part of Governors Island in Guanabara
Bay, facing Rio de Janeiro and northwest of that city. This field
is for the exclusive use of the naval air service of the Federal
Government; specific permission must be secured for commercial
planes to use it. The field is small and is equipped with workshops,
hangars, refueling facilities, air pumps, meteorological station, and
two beacons are used for lighting the field for night landings.
Transportation to the city is by launch. It is estimated that the five
hangars provide storage space for about 55 planes. The facilities
of this base frequently have been placed at the disposal of interna
tional flyers.
Campo de Manguinhos-This is a small field about 30 minutes'
ride by automobile from the center of Rio de Janeiro. The length
of this field is approximately 1,300 feet, its width being about 500
feet. The only equipment is a makeshift hangar providing cover for
about six small planes. This field is used by several private plane
OW nel's.
Owing to the small size of this field and to the fact that it ends
on the shore of the bay, it would scarcely serve as a permanent field
for a commercial airline, as considerable skill is required to land
the larger types of planes.
('ampo de Santa ("ruz.-This is an emergency field only, located
several miles from Rio de Janeiro on the Santa Cruz branch of the
Central Railway of Brazil. It has been used to some extent by
private flyers, but owing to its distance from the city, it has been
practically abandoned. In dry weather it offers rather good landing
space, but because of the marshy character of the land, it can not be
recommended for use in rainy weather.
I/ha das Ena'adas.-This island has been partly leveled off. It
may be considered, for all practical purposes, as being located in the
city of Rio de Janeiro. It is the location of the Naval Academy,
and a slip has been built for docking the navy's seaplanes. However,
these planes do not ordinarily make use of this location, their regular
base being the Campo do Galeao. On the Ilha das Enxadas there
is a minimum of available space for a landing field, the navy's
12
workshop and schools occupying the greater part of the space. The
Condor Syndicate utilizes the facilities at this place.
Rio Grande do Sul, State of Rio Grande do Sul.
Here facilities have been provided for seaplane landing by the
Condor Syndicate.
Recife, State of Pernambuco.
This Ibura landing field is owned by the State of Pernambuco
and operated by the Compagnie Générale Aeropostale. It lies about
6 miles southwest of the town at sea level, latitude 8° 4' south, longi
tude 34° 53° west, and may be reached by dirt road. The field is
rectangular in shape, 2,600 feet by 1,300 feet, the surface being of
sand and coarse grass, flat and without drainage. Temporary run
ways are in use. Only simple repairs can be made. There are one
or two workmen at the hangar. Gasoline and oil must be sent out
to the field. Permission for lighting the field must first be secured
from the Rio office of the company. The field is easily distinguished
by two radio masts on the eastern side, and is supplied with a wind
direction indicator. The upper portion of the Recife harbor is
favorably suited for a seaplane base, its situation and depth of water
being such as not to interfere with ship movements within the
harbor.
Santa Maria, State of Rio Grande do Sul.
There are three hangars, which provide for 20 planes of average
size. The field is practically abandoned.
Santos, State of Sao Paulo.
The Brazilian Government maintains a seaplane base at 23° 55'
south by 46° 25' west at sea level. The beach is wide and hard.
The development of this base is incomplete, but there is a large
administration building, a steel hangar, and a seawall 110 feet long.
The Compagnie Générale Aeropostale maintains a field located at
23° 55' south and 46° 25' west at sea level. The field is long and
narrow, measuring 2,400 feet by 656 feet, and at right angles to the
beach. The surface is smooth, facilitating easy landings. The pre
vailing wind is from the north and northeast. It is claimed to have
shops, hangars, and necessary supplies. An unusual amount of fog
is said to render flying difficult.
Condor Airport.—Near the city of Santos, on the waters of the
outer bay near Ponta da Praia, Condor Syndicate has constructed
a small slip, where its seaplanes load and unload passengers and
mail. Practically no equipment for making repairs, etc., is to be
found there.
Sao Paulo, State of Sao Paulo.
('ampo de J/arte.—This field maintained by the State govern
ment for the exclusive use of the planes of the State militia or
“Forca Publica.” The field is located a short distance from the city
and measures approximately 2,296 by 984 feet. It is unlighted and
has only two wooden hangars 53 by 66 feet each.
Meir municipal airport.—A large field measuring about 3 by 1.8 by ,
1.5 miles is planned for a municipai airport, and it will be used jointly
by military, civil, and commercial planes. The field is admirably
located on the outskirts of the city, not more than 15 minutes' ride by
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13
auto from the center of the city. The only work that has been done is
that of clearing the ground of obstacles and a certain amount of
grading. It is intended to build several hangars, some of which will
be available to private flyers. It is planned to construct four run
ways in the shape of a square, each to be about 3,280 feet long.
All buildings are to be in the center of the square. A runway in
the direction of the prevailing winds—that is, from southeast to
northwest—will be somewhat longer than the other runways.
Campo de Ypiringa-This is a comparatively small private field.
It measures approximately 1,312 by 656 feet and is unlighted and
poorly marked. It is located a short distance from the city of Sao
Paulo. Its only equipment is a wooden hangar covered with corru
gated sheets, which is 52 by 65 feet in size.
Victoria, State of Espirito Santo.
A field located at 20° 10' south and 40° 17' west is owned by the
Aeropostale company. The field is irregular in shape, forming a
right-angle triangle, one side 2,952 feet long, and the other 2,624 feet
long. The surface is well drained. Hangar and wireless facilities
as well as shops and supplies are available.
The Condor Syndicate is constructing facilities in the harbor for
seaplanes.
Other airports.
The following airports, all of lesser importance, are available:
State Of Sao Paulo :
Itapetininga, 2,300 by 1,300 feet, no equipment.
Pirassuminga, 1,640 by 1,300 feet, no equipment.
Sorocaba, 1,300 by 1,000 feet, no equipment.
Campinas, 1,000 by 328 feet, no equipment.
Bauru, no equipment.
Avare, no equipment.
Collina, 320 miles northwest of city of Sao Paulo, runways 1,300 feet.
Lins, inaugurated April, 1928, no equipment.
Ipaussu, inaugurated April, 1928, no equipment.
Assis, inaugurated April, 1928, no equipment.
Jaboticabal.
Acary, State of Para.
Caico, State of Parahyba.
Mossoro, State of IRio Grande do Norte.
Macua, State of Rio Grande do Norte.
Angicos, State of Piauhy.
Pureza, State of Maranhao.
Therezopolis, State of IRio de Janeiro.
Matta, State of Maranhao.
Aracaja, State of Sergipe.
BRITISH GUIANA
The coast land of British Guina, 10 to 40 miles wide, are flat and
swampy. The second belt is slightly higher and traversed by sand
dunes and heavily timbered. The third or largest is much higher
and in parts heavily forested. It has not been explored. The aver
age rainfall is 85 inches a year. The temperature falls to 70° at
night and reaches 89° at times. From May to July or August the
precipitation is very heavy, and a second rainy season extends from
November to February. The coolest months are December to March;
the hottest are from August to October and are to be avoided.
14
There are no landing fields anywhere in the colony, and seaplanes

only could be used.
BRITISH HONDURAS
British Honduras may be divided into several areas; the lowlands,

the pine ridges, the broken “cahoon " ridges, the hills (up to 1,000
feet), and the mountains reaching 4,000 feet. The climate is sub
tropical with temperatures of 50° to 98° F. The average rainfall is
81% inches per year, but in places it is 150 inches. It rains almost
continuously during October, November, and December. It is dry
from the middle of February to the middle of May and wet the rest
of the year.
A temporary landing place has been prepared along the beach at
Belize. A ramp 20 feet wide and 180 feet out into 4 feet of water
was constructed by an American company for its amphibian planes.
A site 10 miles west of Belize is under consideration.
The island of Barbados has a healthful climate; the temperature
averages about 63°F. in winter and 75° to 85° F. in summer. There
are cool northeast trade winds, and the rainfall varies from 50 to 70
inches a year. The rainy season occurs from June to October and
the hurricane season in August and September. The island is
divided into two parts by a deep valley. On the northern part is
Mount Hillaby, 1,104 feet. -
There are no aircraft landing facilities in Barbados, St. Vincent,

St. Lucia, Dominica. Montserrat. Antigua, or St. Kitts-Nevis. In
Barbados the race track could be used as a landing place, but the
ground is tracked and rough. A small level plot at Port of Spain
could be used in an emergency. Landings other than emergency are
forbidden. St. Johns, Antigua, has six level areas which could be
used. At a place called Casada Gardens, on a good road 3 miles
from the city, small planes may land at any time on the golf course
and race track. The prevailing wind is about northeast. No efforts
are being made to construct landing fields for airplanes.
At St. Johns Harbor there is good space for seaplanes. The winds
are usually parallel with the long way of the inner harbor. Black
and orange colored buoys float 100 yards south of the customs jetty.
The Castries Harbor lies in a northeast-southwest direction and is
well sheltered. The ramp of an American company is on the portion
of shore known as La Toc. Seaplanes leave this ramp into a wind.
The depth of water 400 feet from the ramp, at low tide, is 5 feet.
Wheels on amphibians should be lowered well out in the harbor.
The bottom in this area is hard and firm.
The seaplanes of an American company alight on the water at
St. Lucia. They are fueled from lighters in the harbors and not
from shore.
CHILE
The width of Chile varies between 65 and 250 miles and averages
87 miles. The eastern boundary is along the crest of the high Andes,
which are paralleled by a lower mountain chain near the coast.
The northern end of the country, from 18° to 27° south latitude, is
a rainless, sterile, desert area. The rough, high, mineral zone lies
15
between 27° and 33° south. The great central valley, 600 miles in
length and watered by rivers and canals and only a third as high
as the mineral zone, lies between 33° and 42° south. The southern
archipelago and island area has large areas suitable for sheep. The
climate along the coast is in part similar to that in California. There
is no rain in the north but some in the mineral zone; heavy rains
occur in the far south. In the north the weather is hot and dry
but cool at night. Snowstorms are frequent in the high mountains
where weather variations are frequent and great. The summer (our
winter) is the dry season. The weather is influenced by the Andes
and the cold Humboldt Current. The average temperature at San
tiago is 56°; the highest in the north is 91° and the lowest in the
south 17° F. -
Chile is one of the most progressive countries in the field of aero

nautics, and notable progress is being made. Some landing fields
in use lack sufficient facilities and are used at some risk, but work is
being done for their improvement and the adding of others. Visit
ing flyers are permitted to land at any of these fields, but they must
secure permission from the Ministry of War before landing at the
principal military fields, located at El Bosque and Iquique.
Antofagasta.
The El Gallo field at Portezuelo, at 23° 45' south and 70° 24′
west, is at an altitude of 1,330 feet and some 10 miles east of
Antofagasta is being developed. Telephone and telegraph services
are available. Lighting equipment is being installed. A radio station
is also being erected at this field to maintain direct communication
with Iquique and Copiapo. The size is 6,560 by 6,560 feet. A stand
ard 100-foot white circle readily identifies this field. Gas and oil
are available. The surface is reported as soft and sandy. There
is one small hangar available, 66 by 66 by 13 feet.
Arica.
The El Morro landing field is the one formerly occupied by the
army air unit which is now stationed at Iquique. It is located behind
the Morro promontory, about 4 miles southeast from the center of
Arica. The field is 18° 29' south by 70° 20' west, it an altitude
above sea level of 305 feet. The size of the field is 6,560 by 3,280
feet, with an area of 500 acres, in the shape of a rectangle. The
equipment consists of three wooden hangars, barracks, electric plant,
etc. Gasoline and lubricating oils are available. The field is sandy
and the immediate surrounding hills fairly low, and night landings
are possible. Three hangars, each 59 by 13 feet, are available. It
is reported that bids are to be requested shortly for the construction
of modern metal hangars. The boundaries of the field are to be
ºd with electric lights.
eICI.
A standard white circle identifies this
Colina.
Colina is located 15.5 miles north of Santiago at 33° 13' south by
.70° 41' west and is 1,717 feet above sea level. The field measures
3,280 by 5,900 feet with an area of 445 acres. This field is owned
and operated by the Aeropostale company.
112509—30—3
16
Copiapo.
The field at Copiapo, Campo de Marte, is located about 1 kilometer
east of the town of the same name at 27° 13' south by 70° 22' west,
at an elevation of 1,200 feet. The field measures 2,624 by 1,640 feet,
contains about 100 acres, and is rectangular. It is equipped with one
hangar having space enough for six or seven small commercial planes
and a small service station for quick repairs and for the supply of
fuel and oil. There is also telegraphic and telephonic communication
with near-by towns.
El Bosque.
This military field lies at 33° 27' south by 70° 14' west, 1,706 feet
above sea level. It is 8% miles south of Santiago and has a runway
5,900 feet in length by 2,624 feet in width. Prevailing winds are
north and south. At one end of the field there are army flying schools
and the mechanical shops, and on one side are located the hangars
for government machines and administrative buildings, etc. Praç
tically all of the army planes are kept on this main field. It is
equipped with lighting marking the four sides of the runway, and
installations are being made of a system for directly lighting the
buildings. The flood type of night illumination will not be used
on this field. It is reported that the facilities are sufficiently large
for servicing any number of planes at one time, there being five
hangars of concrete and steel construction and four frame hangars.
Iquique.
Los Condores, an Army landing field, is located on a flat plain
about 7 miles from Iquique, beyond the coast range of mountains, at
20° 10' south by 70° 7' west, 1,148 feet above sea level. The field
is soft natural sand, clear of rocks, measuring 3,280 by 3,280 feet.
Its runway is approximately 3,280 by 2,624 feet. It is equipped
to handle numerous planes in the five hangars already con
structed, each 66 by 98 by 13 feet in size. It also has a machine
shop and other necessary services, including barracks, officers'
quarters, telegraph office, hospitals, and administration offices, al
though on a smaller scale than El Bosque. There is no illumination
for night flying. It is reported that a radio station will be erected
shortly. American aviation gasoline and oils are available. Pre
vailing winds are from the southwest, and there is usually an abun
dance of mist over Iquique in the early morning from May to
September. Recently, the Chilean Government has awarded to an
American concern the contract for the erection of an additional
modern steel hangar 100 by 330 feet with a door clearance of 110
feet in width by 27 feet in height. A standard white circle identi
fies the field.
Ovalle.
The Tequi airport is located 6.2 miles northeast of the city of

Ovalle at 30° 8' south by 71° 51' west at an altitude of 820 feet.
The size of the field is 3,280 by 984 feet with an area of 30 hectares.
There is one small metal hangar, 66 by 66 by 13 feet. Gasoline, oil,
and water are available. Repair facilities are very limited. Tele
graphic and telephonic communications are to be had. There are
no obstructions.
17
Other Government fields.

Aside from these principal landing fields and airports, the Govern
ment has constructed other fields near Ovalle, Talca, and Rancagua.
All of these fields use a uniform marking. Considerable progress
has been made in conditioning these fields in the last few years,
although radio and other aids toward air navigation are not used.
Penuco.
This airport was opened August 3, 1928. The hangar is of suffi
cient size to house 5 large and 10 small planes. Penuco is situated
468 miles from Santiago on the southern branch of the longitudinal
railway and has a population of 34,363.
Puerto Mount.
The Chamiza airport is located 5 miles south by southeast of
Puerto Mount at 41° 49' south by 72° 40' west at sea level. The
field measures 3,280 by 2,624 feet with an area of 198 acres.
Quinteros.
The airport at Quinteros belongs to the navy and is used solely by
seaplanes. The port is equipped with modern facilities. The loca
tion of this place is approximately 19 miles north of Valparaiso at
32° 46' south by 71° 33' west at sea level. The landing field is very
small, being only 984 by 1,640 feet with an area of 37 acres, the
field being soft and sandy. The entire Chilean naval air force is
based there, and the only training schools for naval aviation are
there. The field has no night lighting, but has a day marking in the
center, consisting of a white circle in which is inscribed the letter
“T.” A forest east of the field is indicated as an obstruction. At
the field there is one wooden hangar about 40 by 46 feet. At the
seaplane base there are three steel and concrete hangars, each about
131 by 164 feet. Complete repair shops, an ample force of mechan
ics, gasoline, oil, and water are all available. Telegraph, telephone,
and naval radio stations are at the seaplane base.
Climatic and meteorological conditions are practically the same
as those at Valparaiso, average winter temperature being 7° C. The
wet season is from May to August, when considerable rainfall is
to be expected. Fog may be expected during the months of Feb
ruary and March during the early mornings, but it is usually dis
sipated by 10 a. m. Prevailing wind is from the westward.
Temuco.
The Maquehua airport is located 3.7 miles east of the city of
Temuco at 38° 45' south by 72° 35' west at 371 feet above sea level.
The field is rectangular, 1,640 by 2,952 feet, with an area of 112
acres. Landing is obstructed on the south by a forest, the average
height of the trees being about 66 feet. An excellent landmark
for identifying the field is the red roof of the officers' club, a 1-story
building at the east end of the field. There are no lighting facilities.
There are three metal hangars 115 by 75 by 20 feet. An additional
hangar is being constructed. A small workshop is located on the
field.
Proposed Santiago field.
The Government of Chile is giving serious consideration to the
establishment of a commercial airport of major importance in the
18
vicinity of Santiago, which would be equipped with hangars, machine

shops, lighting equipment for night flying, and all other appur
tenances of a modern airport. This contemplated project has been
made possible by the recent donation of a wealthy American citizen
for the purpose of encouraging commercial aviation in Chile. Pre
sumably Los Cerillos airport, located 5 miles southwest of Santiago,
is to be the major commercial flying field in that vicinity. It is
at 33° 26' south by 70° 41' west at an altitude of 1,706 feet. The
field measures 5,576 by 3,280 feet and is rectangular.
COLOMBIA
Colombia is a country of great extremes featured by three chains

of mountains, northern extremities of the Andes, flanked by valleys
and deep passes. The Magdalena is most important among several
rivers. There are four main zones—first the two coastal areas; then
the low foothills up to 3,000 feet and valleys; the low hills and the
first ranges of mountains up to 6,000 feet (the coffee country); and
finally the higher ranges and plateaus, over 6,000 feet high. The
climate varies greatly. On the Caribbean coast it is dry and hot
from December to May, and wet from June to December. On the
Pacific side it is tropical and rains nearly every day. Both coasts
are hot and damp. In the second Zone, January, February, March,
July, August, and September are dry; the other months are wet.
Here the climate is semitropical and the average temperature 76° F.
The third Zone is much like the second, except there is more rain.
It is ideal between 5,000 and 7,000 feet. Above 7,000 feet the seasons
also vary little, and the temperature varies between 40° and 60° F.
Colombia has boasted of a regular air service since 1920. Most
of the planes were seaplanes, and there was no great early need for
facilities for landplanes.
The airport at Bogota, for landplanes, is used by the government
military service.
Landings are effected by seaplanes at Barranquilla, Cartagena,
Sautata, Buenaventura, Puerto Wilches, Nisva, La Gomez, Calamar,
and other places. The courses followed are along the Magdalena,
Sinu, and the Cauca Rivers.
The Barranquilla airport is located 1 mile from the center of the
city on the bank of the Magdalena River. The land is largely a
reclaimed swamp. Equipment consists of a large, lighted hangar 98
by 131 feet to ... large seaplanes. It is constructed entirely
of metal and has an asbestos roof; a large machine shop of similar
construction is located on the field; underground gasoline tank, proof
against explosion and fire, as well as other modern facilities, may be
found there.
The Cartagena airplane base has recently been authorized; it is
to be located in a suburb of the city called Isla de Manga and will be
a triangular field. -
The airport used by an American company contains about 140 acres

of level land about 7 miles south of Cartagena near Soledad. It
contains two runways 295 by 2,950 and 295 by 3,600 feet and a wind
direction indicator.
La Brisa airport at Ibaque has been given to the Scadta company
by the town. This landing field is available to the public.
19
COSTA RICA
Costa Rica is traversed by a chain of mountains from northwest

to southeast. Some peaks reach 11,000 feet. The rainy season ex
tends from May to November, although June is fairly dry. The
temperature averages about 75° F. along the coast and about 60°
in the mountain regions.
There are three fields developed sufficiently for use. They are
located at Port Limon, San Jose, and Puntarenas.
Planes land on the beach at Cinequite, 1 mile from Port Limon.
The open sand beach is 30 yards wide, while coconut trees and
shrubs occupy another 30-yard strip between the beach and a high
way. The municipality has decided to clear the trees over a 1,000
yard strip and prepare there a level 100-yard runway of gravel
and clay. This will make a 1,000 by 60 yard field with a 100-yard
paved runway diagonally across the beach at one end, near a tem
porary hangar soon to be built. Gasoline supplies are available.
A road parallel to the beach lies 60 yards from it for 5 miles south
from Port Limon.
Colonel Lindbergh landed on the Bay of Puntarenas. Recent re
ports indicate that a refueling station has been established there,
and plans are being made to develop a modern airport.
La Sabana at San Jose is a 2-way field extending east and west.
It is operated by the Government as an unrestricted commercial
field. The position is at 9° 56' north by 84° west, at an altitude
of 4,000 feet. The land is rectangular, measuring some 4,000 feet
by 600 feet; the surface is smooth and covered with grass. There
is approximately a 2 per cent grade to the field. Drainage is good.
Radio towers and guy wires south of the field and trees at both the
east and west ends are to be guarded against. No markers are
evident. The field can be identified as the only open space near the
city. There are no provisions made for lighting. The prevailing
wind is north by east. At the extreme western edge of the field there
is a hangar 60 by 60 feet with a 12-foot overhead clearance. There
are no landing strips nor runways. Afternoon flying is not advisable
because of fog. No modern facilities for the servicing of planes
are available.
CUBA
Cuba is traversed in several directions by mountain chains. There

are numerous rivers, valleys, and plateaus. Pico Turquino in the
Sierra Maestra range is the highest peak. It reaches 8.320 feet.
Cuba is said to have the most healthful climate in the world. The
hotter or rainy season runs from the middle of May through October,
but the mornings are bright and clear. The average rainfall is
52 inches; the heaviest rain is in June and the lightest in March.
The nights are always cool and pleasant, and sea breezes temper the
heat.
Commercial aviation has made great progress in Cuba. A plan to
establish airports and airport facilities is in effect. Considerable
progress has been made, and results are gratifying.
Alquizar, Habana Province.
The field is 1 kilometer south of Alquizar and measures 1,500 by
1,200 feet. The general direction is north and south, with splendid
approach.
20
Bainoa, Habana Province.

The field is located 328 feet north of Bainoa. The short axis is
600 feet, north and south, while the long axis is 1,200 feet, east
#.
ield.
west. There are telephone and telegraph lines west of the
-
Baracoa, Habana Province.

This field lies 0.6 mile southeast of the town with dimensions
1,500 by 1,500 feet. The approach is good from all directions.
Bayamo, Oriente Province.
This field lies 1.2 miles northeast of Bayamo. It is in the shape
of a square and measures 2,000 by 2,000 feet. A highway and a
telephone line are on the south of the field. Approach #. all
directions is good.
Camaguey, Camaguey Province.
A landing field is located 5.6 miles northeast of Camaguey at 21°
61' north by 78° west, at sea level. It is close to the highway that
goes from Camaguey to Ninas and covers approximately one-half
square mile. The terrain is good, with natural drainage. The field
is sufficient to take off and land with any kind of plane. There are
four runways one-half mile long and one-fourth mile wide. There
are no obstructions. The field is identified as being 2 kilometers
north of a big distillery and close to the Ninas highway. No light
ing facilities for hangars are reported. It is reported that there
is no personnel for service and maintenance of planes, but this could
be requested from the army post at Camaguey. Commercial gaso
line and oil are available. Repair facilities are at Camaguey, but
not at the field: communication by telephone is available. Meteoro
logical service is obtained by cable.
Caraballo, Habana Province.
The field is 0.6 mile northeast of Caraballa and extends 1,640 feet
from northeast to southwest and 820 feet east and west. The best
approaches are from the north and east. The terrain is good.
Cienfuegos, Santa Clara Province.
The field is located northeast of the center of Cienfuegos and
borders the Cienfuegos-Caonao Road. It is approximately 1,650
feet by 1,000 feet. Gasoline, oil, water, and telegraph and telephone
services are available.
Cuatro Caminos, Habana Province.
The field is 0.6 mile west of Cuatro Caminos, and extends 1,400
feet north and south by 2,000 feet east and west. The best approach
is from the west.
El Gabriel, Habana Province.
A landing field lies 328 feet northeast of El Gabriel and measures
4,710 by 2,325 feet. There are telephone lines to the south of the
field. Approach is good in any direction.
Finca “Bella Union,” Habana Province.
A landing field 5 miles from the town of Gabriel with long axis
990 feet east and west and short axis 765 feet north and south is
available. The approach from all sides is good, as is the terrain.
It is regarded as an emergency field only.
21
Finca “La Posta,” Oriente Province. -
The field is 9 miles southeast of Victoria de las Tunas and meas

ures 2,000 feet north and south by 1,000 feet east and west. A road
and telephone line are west of the field. The terrain is good.
Finca San Jose, Habana Province.
The field lies 2.5 miles southeast of San Antonio de los Banos. It
measures 2,548 feet north and south by 2,332 feet east and west.
The approach is good from all directions. The terrain is good.
Guantanamo, Oriente Province.
This field lies northeast of Guantanamo and extend 1,320 feet in
a north and south direction and 1,320 feet east and west. The best
approach is from north to south.
A field southeast of the town measures 1,320 feet by 924 feet.
The field is an automobile racetrack and is used only in an emergency.
Guara, Habana Province.
The landing field is 0.6 mile west of Guara and extends 1,000 feet
from north to south and 900 from east to west. The approach is
good from all directions. There are telephone lines on the north
side of the field.
Guines, Habana Province.
This field is 1.2 miles west of Guines and is 3,120 feet square.
Telephone lines are located south of the field. There is a good ap
proach from all directions. The terrain is excellent.
'Guira de Melena, Habana Province.
This field is located 0.6 mile north of Guira de Melena. The short
axis is 1,066 feet north and south and the long axis 1,394 feet north
east and southwest. There are telephone lines on the southeast
side of the field. Best landings are effected from this direction.
Habana, Habana Province—Camp Columbia.
This airport belongs to the Cuban army. The position is 23°
north and 82% west; the altitude is sea level. The surface is dry
and flat, with a slight incline and natural drainage. There are no
obstructions. The field is located 7 miles west of Morro Castle,
measures 1,200 yards square and is equipped with five hangars,
aviation-school buildings, shops, and facilities for gasoline, oil, a
spare storage, and repairs. The field is reached from the city by
bus, autos, trolley cars, etc. It is used for the planes of an American
company.
It has the standard 100-foot white circle, and the name appearing
on the hangars is “CAMPAMENTO COLUMBIA.” It is further
identified by the hangars, and the wind-direction indicator. The
field is illuminated near the hangars, and reflectors light the field.
There are no beacons. An official is on the ground at all times to
give service. Permission must be obtained from the Chief of Avia
tion Corps to secure the use of a hangar, but no charge is prescribed.
Other facilities at the airport are a restaurant, first-aid station, tele
phone, fire-fighting apparatus, and a telegraph office. Prevailing
winds are southeast by south in the morning, and east by north
east in the afternoon. Fog is very rare. The hurricane season
is usually considered to include the months of September and
October.
22
Jaruco, Habana Province.

There is a field located east of Jaruco measuring 6,560 feet east
and west and 1,200 feet north and south. There is a good approach
from all directions. The terrain is excellent. -
La Catalina, Habana Province.

The landing field is north of the town and measures 950 feet east
and west and 450 feet north and south. The terrain is excellent.
A good approach can be effected from all directions.
Las Vegas, Habana Province.
The landing field is located northeast of the town. The long axis
is southwest by northeast and measures 1,800 feet. The short axis
from north to south measures 1,200 feet. There is a good approach
from all directions. The terrain is exceptionally good.
Madruga, Habana Province.
This landing field lies 2 miles northwest of Madruga on a big
lain. Fliers are cautioned against low spots in the terrain. The
field is recommended for emergency landings only.
. Managua, Habana Province.
This field is 0.6 mile northeast of the town and is 900 feet east and
west by 600 feet east to northwest. The approach is good in all
directions. The terrain is excellent.
Matanzas, Matanzas Province.
Located 7.5 miles from Matanzas, along the Limonar Road is the
Matanzas Airport. The long axis is approximately a half mile"
and the short axis one-fourth mile. There are facilities for supply
ing oil, fuel, etc. Telegraph and long-distance telephone communi
cations are available.
Manati, Oriente Province.
This field is 0.6 mile east of the sugar mill “Manati’’ and is 2,000
feet north and south and 1,320 feet east and west. There are a high
way and a telephone line on the north side. A good approach is
possible from all directions.
Manzanillo, Oriente Province.
This field lies 2 miles southeast of the town and measures 4,000
feet north and south and 5,040 feet east and west. A highway and
a telephone line lie on the north side. There is a good approach
from all directions.
Media Luna, Oriente Province.
This field lies southeast of the sugar mill “Isabelle * and measures
800 feet north and south and 1,320 feet east and west. There are
telephone and telegraph lines south of the field. The best approach
is from west to east and north to south.
Melena del Sur, Habana Province.
This field is 1 mile northeast of Melena del Sur and measures 900
feet north and south by 900 feet east and west. There is a road on
the south side of the field, and the approach is good from all direc
tions. The terrain is very good.
Nueva Gerona, Isle of Pines.
The field lies 1 mile east of Nueva Gerona and close to the model
prison. The dimensions are 600 by 200 yards. There are facilities
for small repairs and for securing fuel and oil.
- 23
Nueva Paz, Habana Province.

There is a field which measures 1,640 feet north and south by
1,640 feet east and west 0.6 mile southwest of Nueva Paz. The ter
rain is good, and the best approach is from the west. There is a
second landing field located northwest of the town which measures
900 feet north and south by 700 feet east and west. There is good
approach and terrain.
Niquero, Oriente Province.
The landing field is located two kilometers east of Niquero and
measures 1,230 feet north and south by 2,000 feet east and west.
There is a good approach from all directions and a good surface.
Pinar del Rio, Pinar del Rio Province.
The field at Pinar del Rio is 12 miles south of the city along the
Pinar del Rio-Colomo Beach road and measures 800 by 500 yards.
There are facilities for securing oil, gasoline, and repairs.
Preston, Oriente Province.
The landing field is 1,300 feet east of the sugar mill “Preston ’’ and
measures 700 feet north and south by 1,000 feet east and west. The
best approach is from the east, and the terrain is good.
Rio Seco, Habana Province.
This field is 0.6 mile southeast of the town and measures 900 feet
north and south by 650 feet east and west. Telephone lines on
the north side of the field are to be guarded against. The best
approaches are from the east and south. The terrain is good.
Sabana, Oriente Province.
This field is south of Sabana and is 2,400 feet square. There
are a railway and telelphone lines east of the field. Approach
is good from all directions.
San Antonio de los Banos, Habana Province.
The landing field is 0.6 miles southwest of San Antonio de los
Banos and measures 900 feet north and south by 1,200 feet east and
west. There is good approach from all directions and an excellent
surface.
San Felipe, Habana Province.
This landing field was used by the Cuban army for training
students of the first class and is in fair condition.
San Jose de las Lajas, Habana Province,
This field is 0.6 mile southwest of San Jose de las Lajas and
measures 900 feet north and south by 500 feet east and west. The
best approach is from north to south or vice versa. The terrain
is good.
San Luis, Oriente Province.
A landing field is located 0.6 mile south of San Luis. The
short axis, northwest and southeast, measures 600 feet, and the long
axis northeast to southwest, measures 1,000 feet. The best approach
is southwest to northeast. The terrain is good.
San Nicolas, Habana Province.
There is a landing field 0.6 mile north of San Nicolas with good
approach from all directions. The terrain is reported excellent.
112509—30—4
24
Santa Clara, Santa Clara Province.

The airport is located a half mile from Santa Clara. It possesses
a hangar, suitable illumination for night landing, small shop for
necessary repairs, telegraph and telephone, military barracks, etc.
Ample facilities for fuel, oil, repairs, and communication are
available.
Santiago de Cuba, Oriente Province.
A field lies one-half mile southeast of Santiago. The long axis
is 1,000 feet and the short axis 270 feet. There are facilities for
oil, gasoline, water, small repairs, etc. Telephone and telegraph
and good means of travel to and from the city are at hand.
An American company’s field, located between the Bacardi fac
tory and the cemetery, is 2,000 feet north and south and 840 feet
east and west. There is a runway north and south.
Victoria de las Tunas, Oriente Province. -
This field lies northeast of Victoria de las Tunas and measures

3,000 feet east-northeast and west-southwest by 2,500 feet north
and south. Railroad and telephone lines are located south of the
field. There is a road to the north. A good approach can be had
from all directions. The surface is good.
INTERMEDIATE FIELDS
Fields of intermediate rating which can be used for emergency

landings are located as follows:
Matanzas Province.
Matanzas, 4% miles southeast on crossroads to Cidra and Car
denas; one runway 1,500 by 250 feet bounded on the south by San
Juan River.
Union de Reyes, 2 miles east, 2,000 by 1,200 feet, on road to Bolon
dron.
Cardenas, directly south of city, on road to Lagunillas, runway
of 1,200 by 250 feet north and south.
Jovellanos, 0.6 mile northwest on railroad to Matanzas, 1,200 by
1,500 feet.
Pedro Betancourt, immediately south of village, 1,800 by 1,500
feet; contains low spots.
Maximo Gomez, immediately south, beside cemetery, 1,200 by 1,800
feet.
Agramonte, immediately south, 1,800 by 1,500 feet; high-tension
WII'GS.
Marti, 0.6 mile west, 1,800 by 1,500 feet.

Baro, immediately northwest, 1,800 by 1,600 feet; very good.
Colon, immediately west of town, 1,800 by 1,500 feet; good save
low spots in center.
Calimete, immediately west, 1,025 by 635 feet.
Pinar del Rio Province.
Consolacion, 0.6 mile east of city, 1,500 by 2,500 feet; flat &nd clean,
palm trees near by.
Paso Real, 1 mile northeast on good road, 3,000 by 3,000 feet; flat
and clean; planted in pineapples, furrows make rough landing.
Los Palacios, adjoining town on south, 2,000 by 1,500 feet; flat
and clean.
25
San Cristobal, 0.6 mile south of town, 2,500 by 3,000 feet; dirt
road to town. - -
Candelaria, adjoining town to north, 1,500 by 1,500 feet, being

leveled.
Guanajay, 1 mile south, 2,100 by 1,800 feet; on dirt road.
Artemisa, 1 mile northwest, triangle 2,500 by 3,000 feet, on high
way, rough but can be used.
ECUADOR
There are three regions in Ecuador—the low, hot coastal lands,

partly covered with tropical vegetation and averaging 80 miles in
width; the Andean highlands, with numerous very high peaks; and
the forested plains stretching toward the Amazon. A great plateau
between the two chains of mountains varies from 7,500 to 9,000 feet
in altitude. The tropical climate is influenced by the altitudes and is
pleasant in parts of the country. The rainy season lasts from
December to April, the dry, summer season from May to November.
The temperature along the coast ranges from 70° to 90° F.
Owing in part to the unusual characteristics of the country and its
inadequate transportation facilities, flying is increasing in Ecuador,
as in neighboring countries.
Guayaquil.
The only practical landing field at Guayaquil is the military field
named “El Condor.” This field is owned by the Government and
operated by the army. Its position is 2° 13' south, 79° 52' west, and
the altitude above sea level is 11 feet. The magnetic variation is
6° 13' east. It is 3% miles northeast of the city of Guayaquil,
across the river beyond the railroad shops at Duran, and near the
Guayaquil-Quito Railroad and the river. There is a detachment of
26 soldiers stationed there. It is a partly leveled field that has been
cleared of trees and rocks. During a large part of the time from
December to June the field is useless, as it is under water, and during
the remaining months of the year it is not in excellent condition. It
is about 2,624 by 492 feet in size and the cleared section is a rectangle
2.296 by 328 feet. There is a further extension, on which no
improvements have been made and which at present is not available.
The field has nevér been surveyed. The leveling is very poorly done,
and the ground has not been filled in. There is no gradient nor
drainage, and the only runway is the partly cleared section. It
has a black clay surface soil.
Planes should approach the field by following the Guayas River.
When the city of Guayaquil has been reached, it can easily be inden
tified by its size and the Centenary Monument, a high stone shaft
in the center of a large square. Particular care should be taken to
follow the course of the river so as to avoid the hills to the north of
the city. The planes cross telegraph wires that are strung from
the top of the hills north of the city to the other side of the river.
After passing these telegraph wires the town of Duran (Eloy
Alfaro) may be seen on the right, opposite the juncture of the Daule
and Babahoyo Rivers. When opposite the town at the junction
of the rivers, the plane turns to the right, thus avoiding the hills
south of Duran. Beyond the small town of Duran the field is
situated near the railroad track and along the river and may be
26
easily identified
buildings beyond bythe the hangars,
railroad shopswhich are larger than any other
at Duran. *- i.
The only markings are a white circle about 3% meters in diameter,

prepared when a plane is expected, and a cement T about 2,296
feet from the hangers. There is a circle in the center of the north
side of the field that has been prepared for landings, but it is diffi
cult to identify it from a plane. There are no markings on the
hangars, and there are no beacons or other lighting arrangements
whatever. Planes should not arrive at night.
The most serious obstructions are the dangerous telegraph wires
across the Guayas River. These wires extend across the river along
the route that a plane must follow and offer a dangerous obstruction
to planes, as they start from a hill on the Guayaquil side that is
328 feet in height. No plane should be flown in the northern (up
river) section of the city at an altitude of less than 410 feet.
There are also hills 164 to 328 feet high south of the field, which
can be avoided by continuing along the river. The hills opposite
these on the other side of the river north of the city of Guayaquil
also do not offer any obstacle if planes follow the course of the
river. It should be noted that planes should not fly over the fort
situated on these hills near the river.
There are six army pilots being trained by an American aviator
who are not permanently stationed at the field, but live in Guayaquil.
There are two wooden hangars with 46-foot span for landplanes,
and one hangar with 52%-foot span for seaplanes. The hangar for
seaplanes is connected with the river by a small runway. These han
gars are not equipped to shelter the planes properly, and the one for
seaplanes is very rarely used. There is a small machine shop with
a little equipment, but near by are the railroad shops of the Guaya
quil-Quito Railroad, which are somewhat better equipped. There
are also a small office for administrative purposes and a shed with
first-aid equipment. There are no rest rooms at the field or suitable
quarters for flyers. The supply of spare parts is negligible. At
the field there is a telephone, and near by, at Duran, there are the
public and railroad telegraph and telephones. There is a wind
indicator on an iron mast 52% feet in height. There is no weather
map, register for noting arrival of planes, or similar equipment.
Duran is only about 10 minutes' walk from the field, and from .
there a ferry can be taken for Guayaquil. The ferry leaves every
half hour from 5 a.m. to 6 p.m., and launches can easily be obtained
at other times. At Guayaquil there are hotels and restaurants, which
are used by visiting flyers. At Duran there are no suitable accom
modations except in a few private homes and a small railroad hotel
and restaurant.
Part of the equipment and the government planes are moved to
the interior town of Latacunga during the rainy season.
Suitable fuel and oil for planes are not obtainable. There is
available about 100 barrels of domestic gasoline 70° B. or better, and
at least 10,000 gallons of standard motor oil. Oil dealers are all in
Guayaquil, to whom it is possible to telephone from the field or from
the town of Duran.
There is no charge for the use of the field, the machine shops,
hangars, or the service of the personnel. Permission, however,
a
should be obtained through the consulate general and the jefe de
zona (military commander of the district). Several days’ notice
should be given, so that the necessary formal permission can be
obtained. No landplanes should plan to visit Guayaquil during the
rainy season.
New field.—The government has been planning to purchase land
north of the city of Guayaquil, beyond the small hills, on the Haci
enda Atarazana, for the purpose of building an internationl airport,
but the land has not been purchased and the project has met with
serious difficulties.
Quito.
There is no developed field at Quito, but preparations can be made
for the landing of planes.
Other fields.
There are landing fields in the interior at Latacunga, Ambato, and
Riobamba, but very few planes have landed on these fields. They
are neither leveled nor cleared, and they have no equipment, hangars,
markings, or supplies of fuel. Flyers should not consider using them
without first landing at Guayaquil and there making the necessary
arrangements. Steps have been taken to establish landing fields
along the coast at Salinas and Bahia de Caraquez.
The seaplanes of a Pan American company and of the Scadta
(Sociedad Colombia-Alemana de Transportes Aereos) use the river
north of the telegraph lines and beyond the hills at Guayaquil. They
land near the golf club, from which there is bus and motor-boat
service to the city. Near Duran, a short distance from the landing
field, is a sandy beach free from obstructions on which seaplanes may
be hauled.
Meteorological data. -
The prevailing winds are southeast in summer and northeast and

north in winter, but they are variable. There are no heavy winds
or hurricanes and no fog. The rainy season begins generally at the
end of December and lasts until May or June. During the winter
the climate is very humid, and the ground not only exceedingly
muddy but often completely inundated except in the center of the city
of Guayaquil. The temperature in the shade varies from 75° to
92°F. and goes as high as 130° in the sun. The precipitation is very
heavy, but there are no statistics available.
EL SALWADOR
There are two chains of mountains running north and south across
El Salvador. Several spurs cause numerous small valleys. Some
mountains are cultivated to their summits. The climate is tropical
in the lowlands and temperate in the mountain regions. The wet
or winter season lasts from May to November and the summer from
Nººr to April.
anllarW.
Cool land breezes blow during December and
El Śivador, which has always been cut off from direct communi
cation with the coast, especially feels the need of quick and direct
communication with the rest of the world. Much enthusiasm has
been aroused concerning commercial aviation, including mail and
28
passenger service between the important cities of the Republic, and

practical results will undoubtedly follow. - -
There is a landing field located about 12 miles from the city of

San Salvador at a place called Ilo-Pango. This field, is at an
altitude of 2,000 feet and slopes gently toward a precipitous deep
ravine on the south side, making landing across the narrow, part
of the field extremely dangerous. This gives the field practically
a 2-way approach, the principal runway being ample for the opera
tion of any type of plane and in the direction of the prevailing wind.
The location of the field is 89° 9’ west and 13° 42° north. The
standard 100-foot white circle with a 4-foot band identifies the field.
A wind cone is placed on a hangar. The hangars are of sheet iron,
40 by 50 feet, with clearance of 20 feet. Gasoline and oil are to be
obtained in the city near by. Telephone and telegraph service is
available.
Another field, called Campo de Marte, at San Salvador, lies inside
a 1-kilometer race track.
FRENCH GUIANA
The coast of this colony is a lowland rising to plains. About 50

miles inland the highlands commence, and the interior is heavily
forested. The area is broken by numerous rivers, ridges, and low
moutains. The climate is tropical, with excessive rainfall, which
amounts to 130 inches a year at Cayenne. The wet seasons are
from May to August and November to February. The remaining
months are drier.
There is no information available regarding airports or airport
facilities in French Guiana.
FRENCH WEST INDIES
Guadeloupe has a hot climate, with temperature ranging from

62° to 96° F. The rainy season extends from July to November,
the cool season from December to March, and the dry season from
April to June. The land is volcanic. The eastern half of the coun
try is flat; the western half is mountainous, with one peak reaching
4,900 feet.
Martingue is a tropical but mountainous country. The average
annual precipitation amounts to 87 inches, with the heaviest in
August and lightest in March. The temperature along the coast
falls to 75° during the trade-wind period from November to
February. -
Guadeloupe.
There are no airports or facilities for landing aircraft in Guade
loupe. There are no air-transportation connections of any kind
there.
Martinique.
There are no airports or flying fields in Martingue. Seaplanes
are the only ones that could be safely used in this island. The Bay
of Fort de France is very well protected and is calm throughout the
year. Seaplanes can safely land in this bay, but no permanent facil
ities have been provided for the anchoring of planes. Recently two
29
American seaplanes have made emergency landings in the bay, and

one of the anchorage buoys was used. Seaplanes can land on any
part of the Bay of Fort de France, but it is necessary to go to Anse
a L’Ane, on the south side of the bay near Ramiers Island, to find
a satisfactory beach upon which to drag a plane. No stocks of avia
tion gasoline and oils are available. It is necessary to arrange for
fuel in advance. There are no repair facilities. The best meteoro
logical data available are those supplied by the American authorities.
The local observatory is unprepared to supply comprehensive and
reliable reports.
GUATEMALA
Guatemala is traversed north and south by a chain of mountains

with many spurs. There are numerous high plateaus and small val
leys. Along the coastal plane at sea level the climate is tropical,
hot and humid, with heavy rains. About Guatemala City (altitude,
5,000 feet) it is springlike, and the annual rainfall amounts to 57
inches. At Quezaltenango (7,000 feet) it is cold. The rainy season
lasts from May to October in the interior and through December
along the coast. The coldest months are December and January
and the hottest April and May. -
The Republic has made notable progress in aviation recently.

Coban.
The position of the field is 15° 38' 25” north by 90° 18' 58” west
at an altitude of 4,330 feet above sea level.
Escuintla.
This is an emergency field owned by an American company located
about 2 miles southeast of Escuintla, at an altitude of some 1,450 feet.
The approximate position is 14° 17' north by 90° 46' west. The
runway is slightly curved and is 1,500 feet long by 130 feet wide.
The direction of the runway is north and south; there is a fence
at the south and some trees to the north; on either side there is high
grass. There is a wind sock at the field. Aviation gasoline and oil,
in small quantities, may be obtained at Escuintla.
Flores.
The town is situated on an island, just off the shore of the south
central part of Lake Peten. The field is located on the lake shore,
almost directly south of Flores, at an approximate location of 16°
54'45" north by 89° 53' 15" west at 800 feet. The field is 1,300 feet
east and west and 300 feet north and south. The north end borders
on the water, and there are trees on the south and west sides. It
is marked by a 50-foot white circle, and there is a hangar at the
northwest edge of the field.
Guatemala City.
La Aurora airport is the most important and best-equipped field
in the country. It is owned by the government and operated by the
army. It is at 14° 34' 28° north by 90° 31' 57’’ west at 4,592 feet
above sea level. The field is 3 miles south of the center of Guatemala
City and can be reached by automobile road. The field measures
3,864 by 787.2 feet and is rectangular, running north and south. The
surface is of hard clay covered with considerable grass. It is almost
level, with a very low ridge extending from the northeast corner to
30
the southwest corner, sloping gradually in opposite directions so as

to afford excellent natural drainage. The only obstruction is an old
brick water aqueduct about 25 feet high running east and west cross
wise to the field, 1,500 feet to the north. A standard 100-foot circle
identifies the field. Other markings consist of a white point every
196.8 feet down the center of the field and a white square at each
corner. There is a wind-direction indicator on a hanger. There is
no lighting equipment. There is at all times efficient personnel on
hand for servicing planes. Two hangers furnish ample accommoda
tions for three medium planes. Repair facilities are available. Tele
graph and telephone communication is available. Gasoline and oil
must be procured in the city and can be had at the field within a max
imum of three hours on telephone order. Ships planning to refuel
should cable the American consulate general their needs at least 24
hours before arrival. All arrangements can be made in this manner.
Prevailing winds are north and south, lengthwise of the field. Visi
bilityi. always excellent.
40 inches.
Average annual rainfall is approximately
Huehuetenango. .
This field, located at Huehuetenango, is owned by the Government
of Guatemala. The position of the field is 15° 18' 39” north by 91°
27'23" west. The altitude is 6,199 feet above sea level. The field is
1.9 miles west of the town. The long axis of the field is 2,900 feet;
the short, 420 feet. The field is rectangular and has a natural hard
surface. Drainage is good. There are no obstructions at or near the
field. There are no markings or lighting facilities. Accommoda
tions at the field are lacking. There are no hangars nor repair facil
ities, and gasoline and oil are not available.
Jalapa.
The position of the field is 14° 38' 2" north by 89° 28′ 57’’ west at
an altitude of 1,380 feet. It is 1 kilometer east of Jalapa by gravel
road. The field itself is rectangular, 2,952 by 984 feet. The surface
is hard and level, and drainage is good. There are no obstructions
at or near the field. Märkings and identification of the field are
entirely lacking. There are no hangars, repair facilities, or other
accomodations at the field, other than telephone and telegraph. The
nearest available supply of gasoline and oil is at Guatemala City
(two days). Meteorological data are available.
Jutiapa.
This is a Government field, at 14° 17' 15” north by 89° 53' 45.”
west at an altitude of about 1,500 feet. The field is 2,500 by 800 feet,
with the entire field available. Runways are marked, and there
are no obstructions. Aviation gasoline and oil are not obtainable,
but good-quality auto gasoline and oil are available.
La Libertad. -
This field is owned by the Government. Its position is 16° 47'

33” north by 90° 7' 13’’ west at an altitude of 170 meters. It is
located approximately 2.5 miles south of the town. The field is
4,920 by 2,624 feet and it is rectangular. It is level and hard during
the dry season. Drainage is good. There are no obstructions near
the field. Markings are lacking. There are no lighting facilities
nor air beacons. Accommodations at the field are negligible. Gaso
31
line and oil are not available. It is necessary to carry fuel from
Guatemala City by airplane. No data with regard to meteorological
conditions are available.
Mariscal, State of Chiapas, Mexico.
This field is directly across the river from Ayutla, Guatemala,
and is owned and used by an American company in its regular servi
ice between Mexico and Guatemala. Government officials at this
port make the customs and passport inspection of air passengers.
The airport's position may be described as one-half mile north of
Mariscal, 14° 41' 15" north by 92° 8' 15" west at sea level. The
size is reported as 3,900 by 325 feet, with the entire field available.
It has a firm sand surface and is marked with a circle. Pilots are
requested to land through the circle. There is a wind sock at the
field, and aviation gasoline and oil are available.
Puerto Barrios.
Construction of this field is reported nearing completion. Its
approximate position is 15° 43' 30" north by 88° 36' west at sea level.
The size of the field will be about 1,500 by 500 feet, with a firm
surface, and runways marked. Aviation gasoline and oil will be
available. The town of Puerto Barrios is the seaport for the rail
way; the airport is located east of the railway, a short distance
inland from the port and in the vicinity of the wireless towers.
Quezaltenango.
The field is owned by the Government and is located at 14° 49'
44’’ north by 91° 30′ 27’’ west at an altitude of 7,808 feet. The
field is on the eastern edge of Quezaltenango. The surface is re
ported to be hard, level, and with good drainage. There are no
obstructions near the field. Standard marking and identification of
the field, accommodations at the field, hangars, repair and lighting
facilities, and telephone and telegraph are all lacking. Gasoline
and oil are not available except from Guatemala City by telegraph.
Delivery requires one day. Meteorological data are not available.
It is reported that the field is 2,500 by 1,300 feet, all available, and
that the two runways are marked with a cross.
Retalhuleu. -
This is a private field, leased by the Government. It is located

at 14° 32' 15" north by 91° 40′ west at an altitude of about 800 feet.
The field is at the northeast edge of the city of Retalhuleu and only
a short distance east of the railroad. The size is 2,500 by 500 feet,
and the runway is north and south, marked by a 50-foot white
circle. There are no obstructions. The construction of a hangar is
contemplated. Aviation gasoline and oil are available at the field.
There is a wind sock.
Salama.
The position of this field is 15° 6' 30" north by 90° 15' 50’’ west
at an altitude of 920 meters. It is 2 kilometers southeast of Salama
and is 1,640 feet square. The surface is hard and level and the
drainage good. The field is free from obstructions. Markings are
lacking. There are no lighting facilities, beacons, or boundary
lights. Accommodations at the field are lacking. Telegraph service
is available. There is no supply of gasoline or oil available. Guate
32
mala City is the source of supply. No meteorological data are

available.
San Jose.
This is a private field, owned by Cooper & Drummond (salt
works), with Louis Myers as caretaker. It is about 2% miles north
east of the port of San Jose and about 1 mile directly inland from
the ocean, and is near a large salt works. The approximate position
is 13° 55' 30" north by 90° 47' west at sea level. The landing strip
is about a half mile long and 325 feet wide, with a grass surface.
It is marked with a 50-foot circle and the letter I, and there is a
wind sock. The direction of the runway is northeast and southeast.
There are no obstructions.
Santa Cruz.
The field is owned by the Government. The position is 15° 1' 18"
north by 91° 7' 8” west at an altitude of 6,626 feet. The field is in
the town of Santa Cruz. The dimensions of the field are not given,
but it is a small rectangular field, level, with hard surface and good
drainage. There are no obstructions near the field. No markings
are to be found. There are no hangars, lighting, or repair facilities
or improvements on the field other than telegraph. Gasoline and
oil are not available except by telegraph, and then it requires two or
three days. Data are not available with regard to meteorological
conditions.
Tiquisate.
The town of Tiquisate is located between the railway (southeast of
Mazatenango) and the Pacific Ocean, about 8 miles south of the
railroad and about 15 miles north of the ocean, at an approximate
location of 14° 17' 40" north by 91° 21' 30" west. It has a private
emergency field, measuring 1,500 by 1,000 feet, with a grass surface.
The entire field affords landings. It can be identified as being 1,500
feet north of a long office building. The name of the town is painted
on the roof of this building. . The field has a good approach, free of
trees. Gas and oil are not obtainable at the É.
Zacapa.
This field has been dedicated by the municipality to the memory
of Col. Rodriguez Diaz, popular Guatemalan flyer who was killed in
September, 1929, and has been named after him. The position is 14°
58' north by 89° 32' 30" west at an altitude of 1,200 #. The size
is given as 3,200 by 800 feet, with a grass surface, and the entire field
is available. Runways are not marked. There are a fence and some
small buildings on the east side of the field; otherwise it is unob
structed. The field is 1% miles west of the town, and is practically
adjacent to the branch of the railroad which leaves the main line and
goes in a southerly direction to Salvador. Within the near future
a supply of aviation gasoline and oil at the field is contemplated.
GENERAL INFORMATION
Cattle are allowed to graze in practically all of the smaller fields,

and for this reason the field should be “dragged” once or twice
before landing.
In the rainy season pilots coming to Guatemala City from the
direction of Mexico have sometimes found the pass (east of the
33
volcano Agua, or the route of the railroad from Escuintla to Guate

mala City) blocked with clouds, and have been forced to go back to
the field at Escuintla, San Jose, or Retalhuleu. It is possible for
small planes to land on the beach along the Pacific coast, as there are
several good stretches of adequate length.
There is a plan contemplated to construct a field for civil avia
tion near Guatemala City, also in the southern part of the city.
Air-transport companies operating in Guatemala have at one time or
another expressed a desire for a field of their own, and it is not
unlikely that at least one of these companies will build a private
commercial field.
HAITI
Haiti is a land of forested mountains and fertile valleys. It

has the highest mountain in the West Indies, Loma Tina, over
10,000 feet. The average altitude of the Sierra del Cibao is 7,000
feet. The average temperature at Port au Prince from April to
October is 82° F.; for the remaining months 79°. December, Jan
uary, and February are dry. Two wet seasons culminate in May
and October.
There are no public landing fields in the country. A military
field is maintained at Port au Prince, which, by special permission,
is being used by an American company. It is understood that this
company plans an airport of its own. At Cape Haitien military
authorities operate a landing field.
Anse a Pitre.
This field is used as an emergency field and is owned by the
Haitian Government. It is located at 18° 3' north by 71° 45′ west.
The field lies at sea level. It measures 1,200 by 300 feet and is
oblong. There are no markings, identifications, nor lighting facili
ties. Accommodations are almost wholly lacking. Repair facilities
are not available.
Cape Haitien.
The Marine flying field located at Cape Haitien is at 19° 47' north
and 72° 14′ west at sea level. The field measures 2,700 by 750 feet
and is oblong. The surface is flat and sandy, with natural drainage.
The entire field is available for landing purposes. There are no
landing strips or runways. Telephone wires east of the field, are
the only obstructions reported. The standard 100-foot white circle
with 4-foot band identifies the field. No provisions have been made
for lighting facilities. Adequate personnel for servicing and main
tenance are available. No hangars are provided at this field. Tele
phone and radio services may be had. Prevailing, winds during
the summer months are northeast and during the winter northeast
by east.
Gonaives.
This field is owned by the Haitian Government and is used for
emergency purposes, being located at 19° 27' 30" north by 72° 41'
30’’ west at sea level. The field measures 3,600 by 2,400 feet and is
irregular in shape. The surface is flat, and sandy, with natural
drainage. The entire, area is available for landing purposes. No
obstructions are reported. . There are no particular identification
marks to guide flyers or lighting facilities. Personnel for servicing
34
and maintenance are lacking. No effort has been made to provide

repair or communcation facilities.
Hincha.
The landing field at Hincha is located at 19° 8' north by 71° 59'
30’’ west and at an attitude 800 feet above sea level. The field is
south of the town and is triangular, 1,800 by 300 feet. The surface
is hard and level, with natural drainage. There are no landing
strips or runways. A small house at the apex of the field at the
northern end is the only obstruction. There are no specific means
for identifying this field. No lighting facilities are reported.
Telephone service is available.
Jeremie.
The Jeremie landing field is located at 18° 38' north by 74° 7'
west at 50 feet above sea level. The field is located within the city
limits on a bluff overlooking the ocean, at the western end of the
town. The field measures 900 by 300 feet, being hexagonal. The
surface is described as rough, with grass turf. Tall trees on the
western edge of the field are the only obstructions. There are no
standard identifications or markings to guide flyers, nor are there
any lighting facilities installed. Neither hangars nor personnel are
available. Repair facilities are lacking. The field is equipped with
a telephone. Prevailing winds are from the northeast. The field is
too narrow to land other than in one direction, and the surface is
very soft after a rain.
La Gonave.
The name of the La Gonave field is Anse a Galets. It is owned
by the Haitian Government and used as an emergency field. The
position is 18° 50' north by 72° 31' west at sea level. The field
measures 2,100 by 300 feet and is oblong. Identifications, lighting
facilities, accommodations for servicing and maintenance, and com
munication and signal equipment are lacking.
Mole St. Nicholas.
This field is used only as an emergency field and is located at 19°
51’ north by 73° 22′ west at sea level. The field is located 3 miles
north of Mole St. Nicholas and is bounded on the north by the ocean
and on the west by a small lagoon. It measures 1,200 by 230 feet,
and is rectangular. The surface is hard, with a number of loose
stones. The drainage is natural. The whole field is available for
landing purposes. Identification, lighting facilities, accommodations,
personnel for servicing and maintenance, repair facilities, and com
munication and signal equipment are lacking.
Port au Prince.
This field, known as Bowen Field, is located at 18° 37' 30” north
by 72° 19 west. It is located 2 miles north from the center of
Port au Prince. It is bounded on the west by a public highway. The
field itself is practically covered with level green grass; it is used
for a golf course. The field measures 2,100 feet by 1,200 feet and is
rectangular. Drainage is natural, with the gradient about 1 per cent.
There are no landing strips or runways. The entire field is available
for landing. Telephone wires on the western edge of the field and
35
two high radio towers about one-half mile southwest are the only
obstructions. The radio towers are painted yellow and black.
There is a standard 100-foot white circle with 4-foot band, which
easily identifies the field. A wind-direction indicator is provided
on the roof of the last hangar to the west.
There are four small floodlights of 100 candlepower each. There
are no hangars available for storage. An adequate guard for protec
tion of property is maintained, both day and night. Telephone and
radio services are available.
Port de Paix.
This field might better be regarded as an emergency field, located at
19° 57° 30′ north by 72° 48' west, at sea level. The field is one-half
mile west of Port de Paix and measures 1,200 feet by 900 feet. It is
in the shape of an L. The surface is rough and slopes toward the
ocean. High hills south of and buildings on the north side of the
field are obstructions. There are no identification marks nor light
ing facilities. Accommodations are almost wholly lacking.
HONDURAS
Honduras is a mountainous country with several plateaus and

valleys. The climate along the coasts is torrid and in the interior
temperate, though trade winds affect both. Hurricanes are infre
quent. The average temperature at Tegucigalpa is 74° F. The wet
and dry seasons are not well marked. On the Pacific side the wet
season extends from May to November, and on the Atlantic coast
from October or November to March or April.
Landing fields are located at Tela, San Pedro Sula. Tegucigalpa,
Puerto Castilla, and Ceiba. It is understood that fairly good emer
gency landing fields can be found at Choluteca and Yero, although
these fields have rarely been used.
Ceiba.
The Vaccoro Field at Ceiba lies at 15° 46' 36" north by 86° 15'
west at an altitude of 20 feet above Ceiba. The field is rectangular:
the long axis is 2,000 feet and the short axis 750 feet. The surface
is level with natural drainage. There are no obstructions near the
field, but trees surround it at a distance. There are no markings or
lighting facilities, nor is there a wind-direction indicator. Modern
facilities are almost wholly lacking; there are no hangars, repair
facilities, quarters, telephone, telegraph, or personnel. Gasoline and
oil for airplane use are not available in Ceiba. Prevailing winds
are northeast. The weather is generally clear except in the rainy
SeaSOI).
Puerto Castilla.
This field, as well as that at Tela, is owned by the Tela Railway
Co. The runway at this field, which is located halfway between
Castilla and Trujillo, is 2,200 feet long by 200 feet wide, running
north and south. There is one small hangar, and there is a small
supply of gasoline and oil on hand. Complete machine and carpenter
shop equipment is available. No spare parts are kept. The field may
be reached in about 20 minutes by railway motor car from Puerto
Castilla.
36
San Pedro Sula.

This landing field is open, rectangular, 300 by 1,400 feet, having
heavy sod surface and natural drainage, and without special mark
ings, lighting, or other accommodations.
Tegucigalpa. -
This airport is not entirely suited for the landing or taking off of
large planes. It is located about 3.7 miles from Tegucigalpa, near
the wireless station. It is a 2-way field, running north and south,
with a runway 1,200 by 500 feet. Only small amounts of gasoline
and oil are available. There is one small hangar.
Tela.
This field is just outside the city of Tela, near the wireless station.
The runway is 2,200 feet long and 200 feet wide, with clear approaches
at both ends. The field can easily be identified, as it is due west of
the building with “Tela " clearly marked on the roof. There is one
hangar at the field large enough to house one fairly large single
motored plane and one small plane. The hangar is not available for
visiting planes unless the Tela Railway Co.'s plane is away from the
base. tandard aviation gasoline and oil can be obtained. A com
plete machine shop and carpenter shop are close to the field, although
no spare parts are kept in stock. -
MEXICO
Two great mountain chains traverse Mexico north and south, leav
ing between them a number of great valleys and plateaus. . The
low-lying fringe on the Gulf of Mexico and Pacific coasts is know
as the Tierra Caliente. The western mountain chain is called the
Sierra Madre Occidental and the eastern, the Sierra Madre Oriental.
Peaks reach from 13,000 to over 18,000 feet. The Tierra Caliente,
extending to 3,000 feet altitude, is tropical. The nights are tempered
by sea breezes and summers by frequent rains. The average annual
temperature is 80° to 88° F. The Tierra Templado regions, with
altitudes of 3,000 to 5,000 feet, are tempered by the elevation. The
temperature varies slightly throughout the year between 73° and
77° F. The dry season is from October to May. The Tierra Fria
region, 7,000 feet or more high, has an average temperature of 59°
to 62°F. Most of the central plateau is in this zone. There are
few navigable rivers in Mexico. Generally the rainy season lasts
from May to October, when the heavy rains fall almost daily. In
northern Mexico the rains are heavy for only a month or two. Very
little rain falls during the dry season.
The increasing network of air lines in Mexico indicates that avia
tion has exercised a great fascination on the public mind. The people
are responding in constantly increasing numbers to the use of air
planes in everyday life. This attitude indicates continued expansion
of the industry.
Interest in aviation in Mexico with a view to its commercial possi
bilities dates back only one brief decade. The country, since the
earliest interest in aviation was manifested, has been considered as
particularly adaptable to the development of air services because of
the lack of rail facilities or other means of transportation throughout
large expanses of the country.
37
The country has many landing fields equipped with more or less
restricted facilities, but which are sufficiently developed and condi
tioned to serve to a considerable degree the purpose of landing fields
for air lines established in the Republic. The Mexican Government
has given considerable indirect aid to the industry by locating and
conditioning various fields, which because of their natural qualities
can be used as landing fields in their present shape or might be
placed in condition on short notice.
Acatlan, State of Vera Cruz.
A field known as El Charco is located about one-third mile west
of Acatlan and is 1.9 miles long. There are hills nearby. No
supplies are available.
Agua Prieta, State of Sonora.
There is a triangular field located on the outskirts of Agua Prieta,
at an altitude of 4,500 feet, which lies in a northeast-southwesterly
direction. It is possible to use as a guide the tower of the American
air port on the other side of the international boundary. The pecul
iarly adaptable topography of the country on which Douglas, Ariz.,
and Agua Prieta are situated has made possible the establishment of
this large air port where it will lie as a single unit across the inter
national border between the United States and Mexico. The port
will cover 1 square mile in Arizona and approximately the same
amount of territory in Mexico. As laid out, the space will be in the
general form of a double triangle. One corner of each side will meet
and lap against the other for sufficient distance to permit the largest
airplane to cross the boundary on the other part of the field. The
governor of the State of Sonora has taken quite an interest in this
international air port and has intructed the mayor of Agua Prieta
to take all necessary steps to carry out Mexico's side of this project.
When completed this air port will probably be one of the finest in the
country. A 24-inch revolving beacon of 8,000,000 candlepower, visi
ble for a distance of 75 miles, is to be installed. The standard 100
foot white circle and a wind sock have been installed. United States
and Mexican customs, health, and immigration officials are stationed
here. -
Aguascalientes, State of Aguascalientes.

There are two fields in Aguascalientes which may be used. On of
them is about 1.2 miles to the northwest of the city and measures
about 1,312 feet square. There are no obtacles of importance; the
equipment, however, is limited to wind signals and indicators. The
field is bounded on one side by the road from Aguascalientes to
Calvillo.
The other field is known as a portion of the Colonia Cremial
Ferrocarrilera, is about 2,624 feet square, and is located about a
mile south of the city. There are no obstacles except a fence of the
railroad shops which extends along the east side of the field, the Y
of the railroad to the north, and the new tank to the west.
Alamo Temapache, State of Vera Cruz.
There is a field 2,624 by 492 feet located 0.6 mile northwest of
Alamo Tempache. It is the property of a private corporation.
The surrounding obstacles are the company's houses to the southeast
and trees to the northwest. The Tuxpan River passes within 656
38
feet of the field. The most appropriate direction in which to effect

a landing is northwest to southwest or vice versa. The company
has shops, gasoline, and oils.
Allende, State of Chihuahua.
Six-tenths of a mile to the north of Allende is a field 3.280 feet
long by 1,968 feet wide and comparatively level. It is surrounded
by small hills which may interfere with the landing of planes. The
field is connected with the town by a good road. The field has
no filling station or repair shop, but fuel, oil, and repair facilities
are available in the town.
Amacuzac, State of Morelos.
Northeast of Amacuzac is an uncultivated field about 0.6 mile
in length by 0.3 mile in width. This, as well as some cultivated
fields near by, can be used for emergency landings. -
Apizaco, State of Puebla.

Immediately to the south of Apizaco, there is a space of about
247.1 acres, appropriate for use as a landing field.
Arriaga, State of Chiapas. -
There is a field to the southeast of Arriaga which is being con

ditioned by an American company. The field measures 3,280 feet
in each direction. Supplies are available at the field. It will be
a 1-way field, fenced and cleared, with the standard 100-foot white
circle and wind sock. There is no elevation. The field is very
rough, but the surface is always hard.
Ascencion Galena, State of Chihuahua.
There is a good, level field located 1.2 miles from the center of
Ascencion Galena. It contains about 8,896 acres and is without
obstacles of any kind. While the place affords no facilities of a
landing field, it is possible to obtain gasoline and oil in the town.
Axochiapan, State of Morelos.
A field located 984 feet east of Axochiapan may be used. This
field measures approximately 1,640 by 656 feet, runs north and south,
and is on a highway. Bushes are the only obstacles. Gasoline and
oil are obtainable in the town.
Batopilas, State of Chihuahua.
About 6.2 miles to the south of Batopilas there is a field called
Satevo, which is connected with the town by a highway. The field
is about 656 feet long. Twelve and a half miles to the west is a
field known as El Manzano connected by a highway. This field
is about 1,300 feet in length and has no obstacles. Another field
is located 10.5 miles to the west and is known as Algarin. The
general direction of the field is north and south, and it measures
984 feet in length. There are other fields within a distance of 20
miles, connected by a highway, which may be considered as suitable
for landing purposes.
Burgos, State of Tamaulipas.
West of Burgos about 2.4 miles, on the Rancho del Pedregal, is
a suitable field. There are two pieces of prairie land which could
be used in cases of emergency.
39
Campeche, State of Campeche.

A 300-acre field is located at the southwest edge of Campeche.
It is operated by the Mexican Aviation Co. The level field has a
grassy surface with natural drainage and a runway 2,788 by 197
feet, northwest by southeast. There are no obstructions nor mark
ings. The company has private stores of fuel and oil. There are
no hangers nor shop facilities. Other conveniences are available in
the town.
Carmen Tequixquitla, State of Puebla.
Near Carmen Tequixquitla are large plains which can be used for
landings.
Carrizal, State of Chihuahua.
On the outskirts of Carrizal is a field which can be used for land
ings. It is 1,640 by 1,312 feet, and it is situated east of the town.
There are no near-by obstacles, and gasoline and oil are procurable
in the town.
Catemaco, State of Vera Cruz.
On the shore west of Catemaco there is a field without obstacles
other than telegraph lines. This field is being conditioned.
Celaya, State of Guanajuato. -
Fields suitable for emergency landings are available near the city.
Prevailing winds are from the east.
Chauhtemoc, State of Chihuahua.
While Chauhtemoc affords no landing field there are immense
plains near by which could be used for the purpose.
Ciudad Obregon, State of Sonora.
This field is at an elevation of 50 feet above sea level and is located
1 mile northeast of Obregon on the east side of the railroad. The
field covers approximately 600 acres and is level, and drainage is
oor. Its surface is sodded and is reported good. The field is very
ad for landing in wet weather. A wind cone is to be found on the
field. Accommodations are very poor.
Ciudad Ocampo, State of Tamaulipas.
The mayor of Ocampo reports that there are several fields in the
vicinity which might easily be placed in shape for use as landing
fields.
Ciudad Victoria, State of Tamaulipas.
To the southeast of the city of Victoria is a privately owned field,
running from east to west and measuring 1,510 by 790 feet, which,
on some occasions, has served as a landing field.
Colima, State of Colima.
There is a landing field at Colima where planes have been landing
with reasonable safety, not withstanding the fact it has not been im
proved. A permanent field is being built there for the army.
Comitan, State of Chiapas.
This field is being conditioned at the edge of Comitan as a 2-way
field with the standard 100-foot white circle and wind sock. The
elevation is 3,000 feet.
40
Culiacan, State of Sinaloa.

The field at Culiacan measures 500 by 3,000 feet and is at an
elevation of 150 feet, 1 mile south of the town. The surface is
rough. A wind sock is available. Prevailing wind is west by
southwest. It is held advisable in rainy weather to land on a sand
bar in the river at the north side of the town, between the railroad
and highway bridges.
A second airport is being constructed, which will be available early
in 1930, at an elevation of 175 feet, located 3 miles from town. The
runways will approximate 400 by 2,000 feet. Unless lighting facili
ties are installed, night landings will be hazardous.
Cusihuarichic, State of Chihuahua. -
The mayor of Cusihuarichic reports a privately owned field

measuring 290 by 150 feet and a hangar of 90 by 49 feet.
Dolores Hidalgo, State of Guanajuato.
Immediately west of Dolores Hidalgo is a field about 1,640 feet
square which might be used as a landing field. There are other
fields near by which might be used in case of an emergency.
Durango, State of Durango.
There are no improved fields near Durango, but a private field is
used which is situated 1.2 miles southeast of the city. This field
covers approximately 247 acres. Because of its adequate communi
cation, its satisfactory natural conditions, and the absence of near-by
obstacles, the field can be easily made into an airport. Runways are
.# ºt
this field.
The Cia. Aeronautica de Transportes S. A. plans to use
'Empalme, State of Sonora.

Empalme is located 9 miles by rail from Guaymas, on the south
side of the bay. Landings have been effected at this field, which is
located between the bay and railroad at the north edge of town.
Gomez, State of Chihuahua.
Near Gomez there is a valley approximately 18 miles long by 9.3
miles wide. The airport lies in the valley and has gasoline station
and shops. The obstacles are some hills to the north and south of
the field. They reach an altitude of approximately 550 meters.
Guadalajara, State of Jalisco.
A suitable landing field adjoins Guadalajara and is equipped with
a hangar. The field, 600 acres in area, is rough, the best part being
along the railroad. The field is connected with the city by an auto
mobile highway and railway. The altitude is 5,100 feet, and drain
age is good. All supplies and shops are available in the city. The
field is Government owned. Care should be taken, as there is a
large water hole, sometimes dry, in the center of the field, which is
circled by an automobile race track with high sides. Winds are from
the east.
Guanajuato, State of Guanajuato.
There is a landing field at Guanajuato measuring 1,771 by 682
feet.
Guaymas, State of Sonora.
There is a permanent airport owned and operated by an American
company. The field is 3 miles northwest of Guaymas and east
41
of the tannery, which it adjoins, at an elevation of 100 feet. It is

2,400 by 1,800 feet, and the surface is level and turf covered and is
described as a 2-way field. Prevailing wind is east and west. A
100-foot white circle marks the field. Telephone service is available
at the tannery, and two kinds of aviation gasoline may be obtained
within one-half hour. There are no hangars nor wind sock.
Guerrero, State of Chihuahua.
South of Guerrero is situated a field known as Mesa de Mineca,
about 5 miles square. There are no important obstacles, and gasoline
and oil are available in Mineca, which is near by.
Gutierrez Zamora, State of Vera Cruz.
A field completely level and free from obstacles is located 2 kilo
meters northeast of Gutierrez Zamora. This field measures 1,968 by
1,312 feet and is equipped with a gasoline and oil filling station.
Hacienda del Parral, State of Chihuahua.
A field is located 1,640 feet northwest of Hacienda del Parral and
is considered appropriate for landing. Gasoline and lubricants are
obtainable in the town, where workshops are located. The field is
about 820 feet long by 354 feet in width. Hills are located on the
north and east sides.
Hermosillo, State of Sonora.
The airport is located northwest of Hermosillo. It is a 1,000
foot field, 2-way, equipped and fenced. It is marked with the
standard 100-foot circle, and has a wind sock. The field is north
of the river, west of the mountain, and west of the railroad. The
elevation is 1,500 feet. Hotel bus service is available to the field.
The surface remains hard in all weather. Aviation gasoline and
oil are obtainable in the town.
Hidalgo, State of Tamaulipas.
While there is no landing field at Hidalgo, there are fields which
are more or less in condition to use in cases of emergency, they being
on the ranches known as Tinajas, La Penita. Ejido de Marriquin,
and others.
Huamentla, State of Puebla.
There are fields near Huamantla of sufficient size and condition
for use as landing fields.
Huayacocotla, State of Vera Cruz. -
There is nor regular landing field at Huayacocotla, but there is

a place suitable for the purpose in the outskirts of the town.
Irapuato, State of Guanajuato.
There is a landing field known as Animas, reported to be partly
equipped. Prevailing winds are from the southeast.
Jamapa, State of Vera Cruz.
About 7.5 miles from the railway and north of Jamapa there is a
field completely level and without obstacles. The field is about
1,640 feet in length, and gasoline and oils are obtainable.
Jiminez, State of Chihuahua.
The mayor of Jiminez reports an abandoned landing field and
advises that it could be extended in any direction, as there are no
obstacles. This field has no improvements.
42
La Rosita, State of Coahuila.

A 172-acre square field with hard surface lies one-half mile west
of La Rosita on a highway and is owned and operated by the North
American Lloyd. A wind cone and boundary and approach lights
are fixed. Floodlights have been ordered. There is one hangar,
and good repair facilities are available.
Las Mochis, State of Sonora.
This field is at an elevation of 80 feet and is located 2 miles
north and 1 mile west of Las Mochis. There is a wind cone located
on the hangar. The standard 100-foot circle is readily visible. The
field is supplied with red obstruction lights and white and green
approach lights. Floodlights are available for landing. Drainage
is exceptionally good. Gradient is 4%.” to the west. Accommoda
tions include a hangar 80 by 100 feet, machine shops, waiting rooms,
fuel and oil supplies, and mechanical service. There are two oiled
runways.
Leon, State of Guanajuato.
There is a field about a mile west of Leon. Fuel supplies and oil
may be obtained in the town. It is illuminated only by the incades
cent lamps of the military camp.
Llanos del Salado, State of Tlaxcala.
Between Santa Ana Napalucan, Santa Ines Tecuaxcomac, Santa
Justica Ecatepec, and San Jorge Tezcipan, 7 miles northeast of San
Martin Texmelucan and 7 miles from Tlaxcala, lie the prairies of
Salado, which contain about 500 acres. There are roads ieading to
the last two towns named. There are no shops or supplies of
gasoline.
Llanuras del Soltepec, State of Tlaxcala.
These prairies are in the northwest part of the State near the
Hidalgo border, and contain about 2,500 acres. The nearest town
is Apam, State of Hidalgo, about 10.5 miles distant. Several roads
and the Mexican Railway are accessible. There are no obstacles
near by ; neither are there shops nor gasoline supplies.
Manual Doblado, State of Guanajuato. -
A short distance from Manual Doblado are fields of the Hacienda

de San Jose del Paso, which may be used for emergency during
the dry season. Approximately 10 miles to the east of the city are
fields which can be used at any season of the year. Prevailing winds
are from the southwest.
Matamoras, State of Tamaulipas.
The following fields in Matamoras are suitable: Federal, Mar
celina, Carnes Tolendas, Mesquite Caido, and Hacienda del Tejon.
They are located 5, 8, 9.9, and 62 miles from the town. The military
field lies to the east of the city and is the most used field.
Maytorena, State of Sonora.
An army landing field located in Maytorena has been used by
civilians for emergency landing.
Mazatlan, State of Sinaloa.
The elevation is at sea level about 3% miles northwest of Mazatlan.
The field covers approximately 400 acres. Drainage is good, and
the surface is hard. -
43
Surrounding jungle and low hills on the east side form obstruc
tions to landing. The prevailing wind direction is west by south
west. Accommodations are lacking. Night landings are hazardous.
Merida, State of Yucatan.
The field of the Cia. Mexicana de Aviacion S. A. is located 1.2
miles southwest of Merida and is connected with the town by a
macadam highway. This field has three runways, one 3,280 by 164
feet, another 1,968 by 164 feet, and the third 1,640 by 164 feet. There
are no obstacles. Repair shops and a filling station are under
construction.
A field called El Fenix, belonging to the State Government, is
located 3,936 feet to the northwest of the town. This field is 1,583
feet long, its width varying from 328 to 1,312 feet. The obstacles
are four windmills and some workshops. The field is equipped with
a hangar, shops, and supplies of gasoline and oils.
Mexicali, State of Baja California.
At Mexicali a new Government landing field with a hangar has
been established immediately to the east of the Government Palace,
which is understood to take the place of the old landing field and
hangar, located in Newton (Pueblo Nuevo), which is southwest of
the main business part of Mexicali.
Mexico City, Federal District—Walbuena Airport.
The National Bureau of Aeronautics is constructing a large civil
airport at Mexico City. The altitude is 6,700 feet. The dimen
sions of the field are 5,900 by 1,968 feet, and it contains altogether
256 acres, which land cost $500,000. This is a permanent field and
is sponsored and managed by the National Government. It was
formerly opened in 1928. All commercial aircraft enter Mexico
City at this port. The facilities are excellent. The field lies ap
proximately 3 miles east of the city and may be reached in 10 min
utes by automobile over a paved highway from the center of the
city. The surface is level with excellent artificial drainage. There
are no obstructions. There are three excellent runways, each 131
feet in width, their length being, respectively, 4,100, 3,936, 3,300 feet.
Plans for further development of this airport include the construc
tion of extensive hangars and workshops, the installation of instru
ments for determining atmospheric conditions, and the installation
of an extensive lighting system such as is used in the most modern
fields is planed. Part of this is completed. There will be a beacon
light visible at a distance of 62 miles, yellow boundary lights,
approach lights, and flood and runway illumination. Defore the
opening of this airport the planes of the Mexican Postal Air Service
and of the private airlines used the military airport of Val
buena, which adjoins the civil airport and which is equipped with
repair shops and other facilities. Valbuena, however, was taxed
beyond capacity, and the opening of the new airport has relieved
congestion.
Minatitlan, State of Vera Cruz.
There is an L-shaped field 0.6 mile north of Minatitlan, with
automobile-highway connection with the town. The field measures
2,296 feet long by 328 feet wide for its major portion and lies east
and west, and 1,800 by 328 feet for the other portion which lies
44
north and south. ... There are no obstacles, near by. Gasoline and
oil supplies, as well as repair shops, are available.
Miquiguana, State of Tamaulipas.
On the outskirts of Miquiguana is a field which is approximately 4
kilometers in length.
Monterrey, State of Nueva Leone.
A permanent airport adjoining the highway and near Monterrey is
owned and operated by the National Government. There is a wind
direction indicator, but no markings have been fixed. The surface
is level and grassed. Five mechanics are employed at the shop and
temporary hangar. First aid, telephone, telegraph, dining services,
and fire apparatus, as well as gasoline and oil supplies, are available.
Moraleon, State of Guanajuato.
To the east and north of Moraleon are fields which might be used
for landings. Prevailing winds are from the south.
Munoz, State of Puebla.
Between Munoz and Apizaco are lands belonging to the Zacatepec
Ranch, adjoining the Mexican Railway, which could be utilized for
landings.
Nautla, State of Vera Cruz.
There is a landing field 2 kilometers southeast of Nautla with a
highway connecting them. The field is 1,312 by 984 feet, lies north
and south, and is 1,640 feet from the shore. This field is used without
difficulty. Gasoline and oil are available.
Nuevas Casas Grandes, State of Chihuahua.
On the outskirts of Nuevas Casas Grandes and to the east there is a
field which could easily be placed in condition for landing and which
is connected with the town by an automobile highway. This field is
approximately 6,600 feet square. To the east there are some hills, at
the foot of which is a small lake. Supplies of gasoline and oil may
be obtained in the town where repair shops exist.
Nuevo Laredo, State of Tamaulipas.
The Mexican Postal Service has used the military field located 2.5
miles west of Nuevo Laredo. There is another field 2.5 miles south
of the city, where the National Government owns and operates a per
manent airport. There are no markings. The level field is grass
covered and has natural drainage. Facilities include one hangar and
a machine shop, fire apparatus, and first-aid, telephone, telegraph,
and dining services. Fuel and oil are available. It is reported that
the field is 2,696 by 2,870 feet, the area being about 180 acres.
Nuevo Morelos, State of Tamaulipas.
North of Nuevo Morelos there are some prairies which can be used
in cases of emergency.
Oaxaca, State of Oaxaca.
The landing field is northeast of Oaxaca and measures 2,296 by
164 feet. It is marked by a 100-foot circle. There is a wind sock.
Aviation gasoline and oil are available in the town.
Ojinaga, State of Chihuahua. -
About 1/4 mile south of Ojinaga is a landing field connected wit

the town by a highway. The field measures 820 by 656 feet and i
w
45
surrounded by brush. About 656 feet to the north and west there
are some small hills, to the east a building, and to the south some
hills. The necessary supplies, such as oil and gasoline, are procur
able in the town.
Ortiz, State of Sonora.
The only landing fields at Ortiz are those which have been used by
civilians for emergency landings.
Ozuluana, State of Vera Cruz.
There is a field 656 by 328 feet to the north of Ozuluana. Gasoline
and oil may be procured.
Pachuca, State of Hidalgo.
At a place 2.5 miles south of Pachuca there is a field about 2,296
feet in length. While there is no filling station nor shops at the
field, these facilities are available in the town. The Mexico-Pachuca
highway passes the field.
Pajapam, State of Vera Cruz.
The only landing space available is the shore about 9.3 miles east
which is without means of communication. There is a mountain on
one side. No supplies are available.
Palmillas, State of Tamaulipas.
In the suburbs north of the town is a landing field known as
Palmilla.
Payo Obispo, Territory of Quintana Roo.
A field in the form of a cross is located about 984 feet from Payo
Obispo and measures 1,968 by 1.312 feet. The surroundings are, to
the south, the ocean; to the east, the town; to the north and the west,
small hills. There are repair shops in the town where gasoline and
oils may be obtained.
Penjamo, State of Guanajuato.
To the south of the city are cultivated fields which may be used for
landing in an emergency, and at the station of Palo Werede are
other level fields for emergency landings. Prevailing winds are
northwest.
Perote, State of Vera Cruz.
A field is located 1 kilometer to the north of Perote and adjoining
San Carlos Fort, which was used as a landing field in 1927 by air
planes of the Federal Government. It is near the Interoceanic
Railway and Mexican national and state telegraph lines, and has
automobile-highway connection with Mexico City, Puebla, Jalpa, and
other towns of importance. The field is about 1,640 feet in length
and needs reconditioning. There are no shops, but gasoline and
oil are procurable in the town.
Piedras Negras, State of Coahuila.
A field called Campo de Harriet, 0.6 mile east of the town, is owned
and operated by the North American Lloyd. The square field has
a solid surface over its area of 2.5 acres. There is a wind cone.
Platon Sanchez, State of Vera Cruz.
There are no regular landing fields at Platon Sanchez, but in the
center of the place, to the south of the Plaza Arireros, there is a
space of 702 by 274 feet which might be used for an emergency
landing.
Puebla, State of Puebla. -
This field has been described as one of the best in the country. It is
a 6-way field allowing a distance of 1,000 feet. It is located at the
eastern edge of Puebla. There are no obstacles. The elevation is
6,500 feet. A paved road connects it with Mexico City. .
Reinosa, State of Tamaulipas.
There is no regular landing field at Reinosa, but there are fields
appropriate for the purpose, such as a large plain about 0.6 mile
from the city.
Rosales, Dto. de Camargo, State of Chihuahua.
Within a kilometer of the town there are fields which can be used
for landing purposes. The most suitable is one northwest of the
town. This field is completely level and measures approximately
1,312 by 656 feet. The principal obstacle nearby is a ridge of
mountains about 2 kilometers to the northwest of the field. No shops
are available, but gasoline and lubricants may be had in the town.
Two kilometers to the east of the town is a field on a good road.
This field on its longest side measures about 3,280 feet, with the
opposite side measuring about 2,920 feet. The field is approxi
mately 1,476 feet wide. To the northwest are ruins of an old fort
about 328 feet away, but these can easily be removed. The shops
of the National Railways are located approximately 2,000 feet
distant. Gasoline and oils can be obtained in the city.
Salina Cruz, State of Oaxaca. -
A level field 2.5 miles in length and 1.2 miles in width lies north
of Salina Cruz. The brush on the field should be removed to make
it satisfactory for landing. South of the town is another field
which measures approximately 0.6 mile in length by 0.3 mile in
width.
Saltillo, State of Coahuila.
The National Government owns and operates a permanent grass
covered field near Saltillo and on a highway. Five mechanics are
stationed at the temporary hangar and machine shop. First-aid,
telephone, telegraph, and dining facilities, and fire apparatus are
available. There are a wind indicator and stores of oil and gasoline.
San Andres Tuxtla Catemaco, State of Vera Cruz.
Near this town is a suitable landing field which it is the intention
of the citizens to place in proper condition. The mayor reported
that the field is level, but dimensions were not given.
San Carlos, State of Tamaulipas.
There is a field about 0.6 mile east of San Carlos which could
easily be put into shape for landings, and the authorities have
expressed a willingness to cooperate in such an undertaking.
San Cristobal, State of Chiapas.
There is a field at San Cristobal which measures 1,312 by 492 feet.
Adjoining the field is a sports field and on another side is an inclosed
cemetery. The National Highway runs alongside. The landing
field is without obstacles, and is good for wet-weather landing.
-
47
San Francisco de Borja, State of Chihuahua.

There is a field to the east of this town which might be put in
condition for a landing field. It is about 0.6 mile in length and
2,300 feet in width. It is bounded on the north by a ridge of hills,
while the San Francisco Borja River flows along the other sides.
San Geronimo, State of Oaxaca.
There is a good natural field about 9,840 feet south of San Geron
imo, with a dirt road connecting them. The Mexican Aviation Co.
has an option for buying the field and, as soon as it actually owns it,
will supply fences to keep the cattle away. It also contemplates build
ing a small station and a fuel and oil storehouse. This field has no
obstacles and is over 300 meters long. The surface is at sea level and
is good.
San Luis Potosi, State of San Luis Potosi.
A large permanent airport is owned and operated at San Luis
Potosi by the National Government. The field lies next to a high
way, 1 kilometer west of the town, and has a level surface with natural
drainage. There are markings in the center and two wind-direction
indicators. There are no runways. There is one large hangar and
four small ones and a complete repair shop. Men are stationed there
for maintenance and repair work. There are stores of fuel and oil
available, first aid, telephone, telegraph, dining facilities, and fire
apparatus.
Santa Maria de Ixcatepec, State of Vera Cruz.
There is no actual landing field, but formerly a field situated about
7 miles from the town was used for that purpose. This field was
connected by a highway. The prevailing winds are from the north.
The present condition and its precise location are not known.
Santiago Marabatio, State of Guanajuato.
There are lands belonging to the town of Marabatio del Encinal
which are sufficiently level for use as emergency landing fields. Pre
vailing winds are from the south.
San Salvador Acajete, State of Vera Cruz.
The land in the vicinity is rough. There is an available space of
about 0.6 mile square located in a small valley called El Rincode la
Maya northwest of the town. -
Santago Tuxtla, State of Vera Cruz.

There are several fields which might be conditioned as landing
fields, among them one called La Luz, located 1.2 miles east of the
town and which measures 2,300 by 1,312 feet. Repair shops and
gasoline and oil are available in the town. Six-tenths of a mile
west of the town is another suitable field. This measures 1,640 by
984 feet.
Santo Tomas, State of Chihuahua.
Surrounding Santo Tomas are plains which might serve as possible
landing fields.
Soto la Marina, State of Tamaulipas.
The first of five fields adjoins the town and is near the cemetery:
it lies north and south and measures 820 by 500 feet, with no ob
48
stacles near by. The second is located 42 miles from the town, lies
north and south, and measures 1,640 by 656 feet, with no obstructions.
The third and fourth are on the ranch known as Coma and the
hacienda of San Jose de Las Rusias. Both lie north and south,
and each measures approximately 1,640 by 820 feet. The fifth is
on the Hacienda del Chamal, 36 miles from the town, and measures
984 by 492 feet. These fields lack shops and gasoline and oil, but
these are found in the vicinity and in the town.
Tantoyuca, State of Vera Cruz.
There is a landing field some 5 miles south of Tantoyuca. The
field measures 3.280 feet north and south and 1,640 feet east and
west, and is connected with an automobile highway. There are
no obstacles in the vicinity, and the field has no special improvements.
Tampico, State of Tamaulipas.
The Tampico flying field is known as Campo Moralillo and is
owned and operated by the Cia. Mexicana de Aviacion, S. A. The
field is situated approximately 3 miles west of the city, on the north
side of the Panuco River 9 miles from its mouth, in latitude 22°
13’ north and longitude 97° 51' west, and has an elevation of approxi
mately 40 feet above sea level. A macadamized road connects the
field with the city The field is 2,500 by 1,600 feet and is covered with
short grass. The field might be described as in the shape of a
capital L. The area is approximately 325 acres. A runway 1,968
by 164 feet runs north and south; another 3,280 by 328 feet extends
east and west. It is not equipped with the standard circle, and it
has no name on the hangar or other marking. The hangar is
equipped with a wind-direction indicator. No lighting facilities
exist at this field. Personnel for servicing and repairing aircraft are
available. The company maintains telephone service at its office
near the hangar. No facilities for meals, quarters, telegraph, or
first aid have been installed, nor is there any fire apparatus avail
able. Small quantities of castor oil and unlimited quantities of
automobile lubrication oils and aviation gasoline may be procured
at the field. A southeast wind usually prevails. Fog is quite
unusual.
The company has recently purchased a tract of land aggregating
309 acres, situated 5.6 miles from the center of the city, on the
Tampico-Victoria highway. The property, known as El Arenal, lies
98 feet above sea level and has a grade of approximately 1° from
east to west. The field extends 4,750 feet east and west and 3,170
feet north and south. It is of sandy loam and covered with short
grass. Construction of improvements was to begin late in 1929.
They will include a steel hangar 120 by 120 feet to accommodate
the largest passenger planes, sleeping quarters, baggage room, and
customs and immigration and restaurant facilities.
Tapachula, State of Chihuahua.
The Mexican Aviation Co. owns a field 2.3 miles southwest of
Tapachula with which it is connected by a good dirt road. The air
port contains 148 acres. It is a level field with a grassy surface and
natural drainage. Only two runways are maintained. Each is
3.280 feet long and 394 feet wide. The company maintains private
stores of fuel and oil, and all conveniences are to be had in the city.
--
49
There is an immigration and customs office on the field. No obstruc

tions are near.
Tarimoro, State of Guanajuato.
Near Tarimoro are fields which can be used for emergency landings,
the principal one being located on the plains west of the town.
Prevailing winds are from the northwest.
Tecpan, State of Guerrero.
A field called Llanos de la Carrera, in fair condition, is located
1,600 feet from the town and 1,600 feet from the beach.
Tehuacan, State of Puebla.
The airport is located at the north edge of the town. The surface
is sodded and remains hard during all weather. There is a wind
sock. No runways are marked, but approach is safe in any direction.
The field is triangular. The best landing is from northwest or
southwest. The elevation is 5,500 feet above sea level. There is
a T marker in the center of the field.
Tehuantepec, State of Oaxaca.
The area north of the bridge over the Rio Tehuantepec may be
used as a landing field.
Tehuatlan, State of Vera Cruz.
It is reported that there is no regular landing field but that the
private company which is drilling for oil in the region is preparing
OIle.
Telixtac, State of Morelos.

East of Telixtac is a field approximately 1,640 by 656 feet in
size. Obstacles are small shrubs. The field is connected by highway
with the town, where gasoline and oil may be obtained.
Temores, State of Chihuahua.
There is a landing field which measures 1,640 feet from east to west
and 656 feet from north to south on the outskirts of Temores. It has
a slight elevation on the north portion. Supplies of oil and gasoline
are obtainable in the town. To the west of the town is another field
suitable for landing, located 3.5 miles from the city and 0.6 mile from
Santa Matilde Ranch. This field is about 0.6 mile square and has
no obstacles.
Teoselo, State of Vera Cruz.
Near Teoselo to the eastward is a field known as Llano Grande
which might be placed in condition to be used as a landing field.
There are no obstacles near by.
Tepalcingo, State of Morelos.
There is a large expanse of ground northwest, north, and north
east of Tepalcingo which, because of its level nature, may be used
for landing.
Tepic, State of Nayarit.
The field is located on the northeastern edge of Tepic. It is a
1-way field measuring 1,000 feet. The elevation is 4,200 feet.
Markers consist of a wind sock and the standard 100-foot white
circle. The surface is hard and suitable during all weather con
ditions. Drainage is excellent.
50
Tequila, State of Jalisco.

One and one-fifth miles east of the town and on the highway to
Guadalajara is a field 1,475 by 1,050 feet. Supplies of gasoline and
oils may be obtained in the town.
Tia Juana, State of Baja California.
A new field has been established in the vicinity of the Tia Juana
hot springs. It is 1 mile east of the town and is described as a
1-way field. -
Tierra Blanca, State of Vera Cruz.

About 1,640 feet north of the town is a suitable field measuring
2,624 feet north and south, and 5,000 feet east and west, in the ex
treme southwest of which there is being constructed a military
barracks. Some trees are found near by. The railway shops are
available near by, and gasoline and oil are procurable.
Tlapacoyan, State of Vera Cruz.
A field about 2.5 miles northwest of Tlapacoyan is about 0.6
mile in length and is connected with the town by an automobile
road. The field is in crops. Gasoline and oils can be obtained
near by.
Tonala, State of Chiapas.
A field 1 mile southwest of Tonala has been cleared and fenced
as a landing field. This field, though soft in rainy weather, is in
good condition at other times.
Toluca, Federal District.
There is a landing field 1.2 miles east of Toluca. This field
is known as Santa Teresa, is privately owned, and is connected with
the town by an automobile highway. Gasoline and oil stations and
repair shops are in the town. Some trees near by are the only
obstacles. There is another field at this place which is being used
as a landing field and which is being improved.
Torreon, State of Coahuila.
A good landing field which measures about 3.280 by 5.280 feet is
located to the southeast of Torreon. It is equipped with day signals
and markers. Oil and gasoline are obtainable at the field, where
there are hangar facilities. There are no runways. The ground
is soft and very dusty.
Totolapam, State of Morelos.
About one-fourth mile south of Totolapam is a field 0.6 mile
square. There is a hill about one-fourth mile west of the field.
There are no improvements. Gasoline and oil are available in the
town.
Tuxtla Guierrez, State of Chiapas.

A good landing field during all kinds of weather is located at
Tuxtla Guierrez. The field is at the edge of the town and is
equipped with a wind sock.
Valle de Zaragoza, State of Chihuahua.
While there is no prepared landing field near by, there exists a
field, which may be improved, 1 mile east from the town. It meas
ures 1,312 by 984 feet, and adjoins the Hacienda de Bellavista. There
are hills near by.
51
Wera Cruz, State of Vera Cruz.

The Mexican Avaiation Co. owns a field at Tejeria 10 miles west
of the port of Vera Cruz. The field lies about one-fourth mile from
the railroad station, , where meals are available. The company
carries a stock of fuel and oil and has a steel hangar 125 by 125
feet. There are a number of mechanics there, repair shops, and
communication with Vera Cruz by means of an auto-rail over the
lines of the Mexican Railway, a ride of about 25 minutes.
Wiesca Parras, State of Coahuila.
This field is located 1,600 feet from the railroad station on the
Coahuila Pacific Railway. It measures about 2,624 by 3,280 feet.
In the town there are repair shops and supplies of gasoline and oil.
Villa de Casas, State of Tamaulipas.
There is a field south of Villa de Casas which could be used for
landing purposes.
Willa de Catemaco, State of Vera Cruz.
There is a field 2,050 by 1,075 feet located northwest of the town.
This belongs to the municipality.
Willagran, State of Tamaulipas.
While there is no equipped landing field, there are fields mentioned
as suitable in case of emergency landing, one located west of the
* on
S1(10.
the Laredo-Mexico highway, and the other on the east
Willahermosa, State of Tabasco.

The Mexican Aviation Co. owns and operates a 100-acre level field
northwest of Villahermosa. The T-shaped field is at sea level with
a grass surface and natural drainage. Runways measure 1,870 by
328 feet north and south, and 1,443 by 328 feet east and west.
There are no markings, obstructions, shops, nor hangars. Oil and
gasoline are available.
Villa Tempoal, State of Vera Cruz.
There is a sports field located on the northeast outskirts of the
town which measures 1,312 by 656 feet and which could serve as a
landing field. Its general direction is east and west, and it is acces
sible to the Tâmpico-Tamaulipas Highway. To the south and east
of the field is the knoll on which the town is located. To the north,
northwest, and west, about 0.6 mile distant, is the Tempoal River.
The field is level. There are repair shops in the town where gaso
line and oil are procurable.
Zacatecas, State of Zacatecas.
There is a field located about 7.5 miles southwest of Zacatecas
and 3.7 miles from the southern part of Guadelupe. This lies east
and west and contains about 47 acres. The field has no improve
inents nor supplies of gasoline or oil, but it is reported as being
Ander consideration for use as a base for the air route from Mexico
City to Ciudad Jaurez.
Zongolica, State of Vera Cruz. -
There are two suitable fields located about 37 miles from this town,
One called El Cedro and the other El Potrero. These are located
about 8.6 miles from the railway. No gasoline nor oil is available.
52
NICARAGUA
Two mountain ranges traverse Nicaragua. Several peaks are ex

tinct volcanoes. The plateaus and highlands are healthful, but the
lowlands are hot and tropical. There are two large navigable lakes.
Lake Nicaragua is 110 miles long and 45 miles wide; Lake Managua
is 38 miles long and 10 to 16 miles wide. In the eastern part of
the country rains are frequent throughout the year, while in the
western part there are wet and dry seasons. The dry season is from
December to April.
Archibold Field, Managua, is a two-way field at an altitude of
160 feet above sea level, 2% miles due east of the city and three
fourths mile from Lake Managua; latitude 12° 11′ north and longi
tude 86° 15' west. The field is rectangular, 80 acres in area, running
east and west. The surface is hard during the dry season from
November to May; at other times it is spongy after rain. Drainage
is good. There are no runways. Three inclosed steel-framed
hangars are available.
Small landing fields are maintained by the Government at Corinto,
Rama, Acoyapo, and Deer Island, near Bluefields. There are no
hangars, machine shops, nor stores handling plane parts. It was
reported late in 1928, that 20 available landing fields were scattered
over the country. There are no commercial landing fields on the
east coast of Nicaragua. At Puerto Cabezas a temporary field has
been used. Amphibians take off and land there with comparative
ease. The I3]uefields Harbor affords a good lee for the anchorage
of seaplanes. The prevailing wind is east.
PANAMA
Two mountain ranges which traverse the Republic inclose several

-alleys and plains. The mountain slopes are forested. The climate
is tropical, but more agreeable in the higher interior where the
temperature averages 66 F., as compared with an average of 80°
F. on the coasts. The summer or dry season extends from January
to April. It is rainy most of the rest of the year, with heaviest
rains in October and November. Winds during the dry season
are from the northeast, and ocean breezes always temper the heat.
The average rainfall on the Atlantic side is 140 inches a year, com
pared with 60 inches on the Pacific side and 93 inches in the interior.
The days are usually cloudy during the wet season.
Weather conditions and proximity to the city of Panama and
other distribution centers make the Pacific side of the Isthmus more
suitable for airports. There are very few areas sufficiently flat to
permit their being made suitable for airports, and such flat areas
as exist in the Canal Zone have been utilized for other purposes.
The necessity of combining facilities for both land planes and sea
planes, and the disadvantages of the unprotected open water of
Panama Iłay, indicate that the area adjacent to Limon Bay on the
Atlantic side is ideal for development within the Canal Zone.
Regulations effective as of February 28, 1929, designate, until such
time as adequate commercial airports are established in the Panama
Canal Zone, the following fields: (A) For landplanes, (1) France
Field and (2) Albrook Field and Fort Clayton (emergency only);
- 53
(B) for seaplanes, (1) on the Atlantic side, Cristobal Harbor, and
(2) on the Pacific side, Balboa Harbor.
Aguadulce.
Located 2 miles southwest of Aguadulce, this field, triangular in
shape, measures 450 by 1,350 feet. It is considered to be a good field
and has a grass surface. It is not marked and there are no facilities
for servicing aircraft.
Anton.
This field, 1,200 by 3,000 feet, lies close to Anton and is an all
weather field. Wires border the southeast side, but other approaches
are clear. There are no markings or servicing facilities.
Balboa, Canal Zone.
There is an excellent landing area for seaplanes in the harbor,
although there are no markers nor facilities for night landings,
Mooring buoys are available north of Pier No. 18. There are no
facilities for servicing, housing, or repairing aircraft.
Albrook Field is under construction, but it is not marked and is
not available for use.
Chame.
The Chame Field, measuring 900 by 4,500 feet, lies 1 mile north
of the town. There are wires along the road east of the field, and
there are ant hills and rocks on the field. Thick trees are on the
southeastern side. There are no marks nor facilities for servicing
aircraft.
Chorrera.
There is a good all-weather grass-surfaced field measuring 1,950
by 600 feet just south of Chorrera. Approaches are clear. There are
no markings nor servicing facilities.
Coco Solo, Canal Zone.
The naval air station at Coco Solo measures 600 by 2,000 feet. It
is not marked with the name, but it lies one-fourth mile east of the
city and north of France Field. A standard wind cone is over a
hangar on the west side of the field. There are facilities for night
landings of seaplanes and for servicing, housing, and repairing
aircraft.
Cristobal, Canal Zone.
Folks River provides an excellent landing area for seaplanes.
There are no conventional markings. The facilities of France Field
and Coco Solo are available.
France Field measures 2,000 by 3,000 feet and lies one-fourth mile
east of Colon. FRANCE FIELD is marked on both sides of the roof
of a hangar on the north side of the field. The southern limit of the
field is marked by boundary lights, and other lighting facilities are
sufficicnt for night landings. Facilities for Servicing, housing, and
repairing aircraft are available.
David.
This Government-owned field has a runway 300 by 3,000 feet. This
is a port of entry into Panama. The name of the field is not marked,
but the landing area is marked with black and yellow boundary cones,
and there is a wind cone. There are no lighting facilities. Im
provements, including steel hangars, are planned.
54
Fort Amador, Canal Zone.

An emergency field, not marked, measures 150 by 1,200 feet.
Floodlights are available.
Fort Clayton, Canal Zone.
This emergency field, 250 by 2,800 feet, may be found by the name
on a near-by roof. There is a hangar 66 by 140 feet. A wind cone
is mounted on a tower beside the hangar. Floodlights are available
as are fuel and water. A 15 to 18 mile cross wind lasts throughout
the dry season.
Fort Davis, Canal Zone.
This unmarked emergency field measures 300 by 1,500 feet. Flood
lights are in use.
Fort Sherman, Canal Zone.
This 200 by 1,200 foot field equipped with floodlights may be used
in an emergency.
Garcien.
This field, 1,500 by 2,700 feet, has clear approaches and a good
grass surface, but is not marked and has no facilities for servicing
aircraft.
La Mesa.
The la Mesa field, 15 miles west of Santiago, measures 825 by 3,900
feet. There is a grassy surface, but a few trees are on the field.
There are no markers nor servicing facilities.
Ila Pena.
This field, 1,200 by 3,600 feet, is surrounded by forests, and there
are no markings. It is a good field with a grass surface. There are
no supplies of fuel and water, nor means of repairing aircraft.
Ilas Lagas.
This is a long, narrow field running north and south. It is not
*marked and has no means of servicing aircraft. The grassy surface
is considered fair.
Mandinga.
This 270 by 1,530 foot field, near San Blas, is slightly rolling and .
has a clear approach at each end (north and south). Small buildin
are close to the west side and low trees on the east. The field is
not marked, but is has a grassy surface and is considered fair. There
are no facilities nor supplies.
Panama City.
This large Government-owned airport (a port of entry) is 14%
miles from the city and contains 173 acres. The completed runway
is 200 by 2,000 feet. Two others will be built. The approaches are
clear and good, and standard black and yellow boundary cones mark
the runway. The airport is not marked by name, but a wind cone
is up. ...There is a 15 to 18 mile cross wind in the dry season. There
is no lighting equipment, but there are facilities for servicing and
repairing aircraft. Several extensive improvements are under way
or planned.
55
Penonome.
This field, 1,050 by 3,900 feet, is an all-weather landing place 3
miles south of Penonome. There is a grass surface, but no mark
ings nor facilities for servicing aircraft are at the field.
Pina Pina.
Lindbergh Field, measuring 750 by 1,500 feet, is 6 miles north
west of Panama City. The field is not as good in wet weather as
is desirable.
The Scadta company has facilities for servicing seaplanes with
gasoline and oil at Puerto Escoces and Garachine.
PARAGUAY
Paraguay consists of a plain surmounted by low mountain ranges

lying to the eastward. Probably two-thirds of the area is in forests.
There are large areas west of the Paraguay River used for cattle
raising. The climate is hot, the northern third of the country lying
in the Torrid Zone. There are cool breezes from the south, but at
times they give way to the heat. There are four seasons, the sum
mer being November to March and winter July to September 15.
The French company Aeropostale, operating through Paraguay
into Argentina, has given some attention to the provision of landing
fields along the route.
The square Government airport at Asuncion is at 25° 21' south by
57° 37' west and measures 6,562 by 6,562 feet. The level surface is
sodded, and it is used by military and civil planes, including those
of the Aeropostale line. There are no obstructions, and the field,
visible from a great distance, is marked by a white circle and a wind
cone. The temperature varies between freezing and 95° F. and
averages 83° F. Fogs are rare. Winds are north-northeast and
south-southwest. There are three hangars (corrugated iron), a re
pair shop, supplies of fuel, oil, and water, and local transporta! on
and communication facilities.
PERU
There are three zones in Peru. The western lowlands along the
Pacific are 20 to 120 miles wide. The plateaus lying between the
central and western Andes from 4,000 to 14,000 feet above sea level
form the second zone. The remaining area is made up of the east
ern slopes falling toward the Amazon. There are over 3,000 miles
of navigable rivers, and Lake Titicaca on the Peruvian-Bolivian
boundary is the highest navigable lake in the world. In the main,
the climate is semitropical, but it is influenced by the altitudes. It
is cool in the interior and tropical in the Amazon region. There is
little rain along the coast, but the Humboldt Current moderates the
climate, and the temperature remains practically constant at 68° F.
Heavy fogs from the Pacific occur at times. Rains are frequent in
the Amazon region. The climate in the regions between 3,000 and
9,000 feet is temperate and healthful.
Peru is appreciative of the opportunity created by commercial
aviation. Considerable indirect assistance has been afforded by the
Government, which is preparing adequate airports. The difficulty of
ordinary transportation has assisted to a surprising degree the
56
development of Peruvian air transport. North and south along the

coast, where the great bulk of the inhabitants live, the country is
ideal for flying; a skilled pilot finds no difficulty in landing or
taking off at almost any point. Another factor making for safe
flying is the almost complete absence throughout the year of either
heavy fog or high winds. Commercial companies are making use
principally of Government fields or, in some localities where they do
not exist, an open meadow or a stretch of desert with a single hangar
and one mechanic.
Ancon.
The naval aviation station is located at Ancon, which is connected
with Lima by rail. The trip by rail between these two places takes
about an hour and a half. There are two hangars of steel con
struction large enough to accomodate approximately 10 planes.
Bellavista.
The field at Bellavista, between Callao and Lima, is used by the
Faucett Line. It is located 3 miles from Callao on the concrete road
which connects the two cities.
Iquitos.
Located on the Amazon River, the airport is the main base for sea
planes of the Peruvian Navy Line. There is a large hangar for
four planes, shops and quarters, fuel and oil depot, and other facili
ties necessary to a base for seaplanes.
Las Palmas.
The military field is at Charrollos, a suburb of Lima. This field
is easily located from the Moro Solar, a large solitary rock on the
shore rising some 600 feet above the plain. It is almost 1 mile
northeast of this rock and about 8 miles south of Lima. The airport
is large, well marked with a landing circle, and bordered on the west
side by a row of buildings, quarters, hangars, shops, etc. All
facilities will be found there, including space for 12 planes. This
is the location of the Army School of Aviation. Seasonal effects
are confined to fogs in the winter months.
Lima.
It is proposed to use the Santa Beatriz race track inclosure as a
Lima airport, but only for taking on or discharging passengers or
mail.
Masisea.
Masisea is the junction point for the seaplanes from Iquitos
and landplanes from San Ramon on the Peruvian Navy Line.
There is a triangular landing field some 1,500 feet long and 300
feet wide. A hanger for four planes, fuel and oil supplies, a wire
less station, and other facilities are available. A }. is to be
built shortly. There is a wireless station connecting with Lima and
Iquitos.
Puerto Bermudez.
This is an L-shaped field, measuring 1,500 by 1,200 feet, each
wing being 200 yards wide.
San Ramon—Government Army airport.
San Ramon is connected by rail and roads with Lima. The
field is 2,400 feet long by 600 feet wide, with a hanger for three
57
planes. Quarters for flying officers, supplies of fuel and oil, work
shop and offices, and a modern lighting system are available.
Other fields.
Other municipal fields of lesser importance are located at Talara,
Piura, Paita, Pesco, Ica, Mollendo, Ilo, and Arequia. There are
no hangers at these fields, but fuel may be purchased from local
oil dealers.
A landing field with a radio station has been established at Puerto
Ileguia on the San Ramon-Iquitos Line.
PORTO RICO
Owing to the mountainous terrain of Porto Rico, there are not

many spots on the island offering possibilities for the construction
of a good landing field except on the coastal rim, which has some
excellent sand beaches.
A large marshy peninsula, 3,000 by 300 feet, in San Juan Iłay has
been leased and the Isla Grande Airport created. Much of this land
was filled in, and a roadway leading to it was constructed. This field
is owned and operated by an American company. It is situated at
an altitude of 10 feet above sea level, a (listance of 1 mile from the
city by automobile and only a few hundred yards by launch. The
field measures 3,000 by 300 feet and covers 30 acres, being triangular.
The surface is of hardened clay and gravel. A completed landing
strip is 3,000 by 300 feet, another will be 1,800 by 300 feet. A third,
which is planned, will make it a 6-way field. There are no markings.
An obstruction in the form of a power line extends southeast of the
field, but it will be removed shortly. Red lights at night give warn
ing of this obstruction. The standard 100-foot white circle will be
installed. There is a single hangar measuring 140 feet by 125 feet
with ample clearance. It has ample capacity for five trimotored,
12-passenger planes. A wind-direction indicator, though not illumi
nated, serves present requirements. There are no boundary or
approach lights, although there is light for landing.
Six mechanics and other help are available. Sufficient equipment
provides protection against ſire and pilferage. First-aid facilities,
telephone, and meteorological data are available. Radio call letters
are given as WMDU. One wave length is 32.4 meters, the other
length 54.4 meters. Prevailing winds are south and east by north
cast. There is a marked absence of fog. The erection of a radio
station is contemplated, which will act as a central receiving and
transmitting station for all West Indian operations, in conjunction
with smaller stations at all regular landing fields of the company.
When completed this field will have a class 1 rating.
There is only one other area in San Juan which can be utilized
for landing purposes, this being a field used by the West Indian
Air Express during its operations, but the field is small and not
satisfactory.
The bay at San Juan is large and well protected, offering ex
cellent landing facilities for seaplanes. In the interior of the island
the particularly hilly terrain does not have many places which might
be used for landings. There are said to be a number of reasonably
flat spots, however, which might be used by individual owners.
58
There are no beacons or artificial landmarks identifying any of

these fields.
SURINAM
Surinam, 54,000 square miles, is slightly larger than North Caro

lina and has a population of over 100,000. There is a low coastal
region which rises rapidly to a higher, hilly, heavily wooded interior
which is nearly impenetrable. The climate is tropical. The two
dry seasons are September and October and March and April.
The other parts of the year are rainy. The average annual pre
cipitation is 100 inches. The average temperatures at Paramaribo
is 75° F. -
Pan American company has selected a location on the Colonial

Railroad, 28.5 miles from Paramaribo, for a landing field. The land
is pure sand with little or no vegetation, and the field has been
extended until it now measures approximately 6,560 by 3.936 feet.
The intention is to erect houses for the staff and a small radio station
to be used in connection with the mail service. The only connection
this field has with Paramaribo is by rail.
URUGUAY
The land in Uruguay slopes in rolling plains toward the west,

east, and south. The climate is temperate along the coast and
ranges to subtropical in the north. It is healthful. The mean
temperature in summer is 72° and in winter 55° F. The winter
months are June, July, and August.
Interest in aviation is largely centered in and about the city of
Montevideo. The country is small, with a relatively large propor
tion of its population living in the capital. There has been some
recognition for aviation from the Government in the form of a sub
silly to maintain a flying school located at Melilla, near Colon.
Melilla.
This field is due north of the Cerro de Montevideo and 11 miles
northwest of Montevideo. It is practically rectangular and meas
ures 4,000 feet by 2,700 feet. The long axis runs northeast and
southwest. There are no runways. A group of trees on the south
side of the field and telegraph wires on the west are the only ob
structions. There is no circle in this field. The prevailing winds
are north with an average of 15 miles until the latter part of the
afternoon, when the winds shift east and northeastward. The field
is well drained and has an even surface. It is 160 feet above sea
level.
Pando.
This field is located 20 miles northeast of Montevideo. It is
rectangular and measures 2,624 by 3,936 feet. Hangars 295 feet in
length are located southwest of the field. Two radio towers are
in the same locality. A white circle is in the middle of the field,
and white posts outline the outer extremities of the field. The
towers are white and red and the hangars are gray. On all sides
electric lamps are placed 50 feet apart. On the hangars and towers
59
are placed red lamps. A searchlight indicates the arrival of all

planes at night.
Paso Mendoza.
The military school called Esquela Militar de Aviacion is at
Paso Mendoza, about 8 miles northwest of Montevideo. This field
is rectangular and has an area of about 90 acres, with the long
axis running north and south. It is well drained and has a com
paratively even surface with no obstructions. Flying is possible
the year round, and landings can be made during wet weather. It is
available only to flyers of the military school. Its altitude above
the sea is 164 feet. The field is equipped with hangar and repair
facilities.
Other fields.
Other fields where landings have been made by the military au
thorities are located at Caracas (within the race track concourse),
San Carlos, Barquisimeto, Barinas, San Fernando, and Calabozo.
VENEZUELA
Venezuela may be divided in four sections; first, the Guiana high

lands covering the territory south and east of the great Orinoco
River; second, the great central plains and river valleys of the
Orinoco Basin; third, the northeastern chain of the great Andean
cordillera; and fourth, the dry, healthful table-lands bordering on
Lake Maracaibo. There is a peak reaching 16,423 feet and six others
over 13,600 feet in the Andean section. The climate varies from the
tropical heat of the lowlands and plains to the mild temperatures of
the plateaus and mountain section. The rainy winter season on the
plains lasts from April to October. In the uplands the seasons are
the same but less marked. The temperature averages between 50°
and 77° F.
A decidedly receptive attitude toward commercial aviation has
developed recently in Venezuela.
Ciudad Bolivar.
This field is located on the Orinoco River and is partially improved.
It can be recognized by the standard 100-foot white circle. The field
measures 1.968 by 1,968 feet.
Maracaibo.
This is a large new field which has not been completed and is not
marked in anyway. It is situated just beyond the Santa Maria race
track and El Paraiso suburb. The field is known as Grano de Oro.
Seaplanes land in the harbor with ease.
Maracay.
At Maracay the military aviation school is conducted for training
military flyers. As the field is located within the city limits, any
accurate map will show its position. It is not open to general use
and bears no special marks, but there is a wind-direction indicator
on the hangar, and it would be easy to recognize it by day. No lights
are displayed on the field at night, but flood lights are available
when needed. Meteorological data are not obtainable for the imme
diate vicinity.
60 - -
VIRGIN ISLANDS
St. Thomas Harbor, though small, offers a good spot for amphib
ians and seaplanes.
Ilandings of small planes have been made at a golf course northwest
of the harbor. A runway 2,500 feet long could be constructed par
allel with a highway, east and west. Another 1,000 feet in length
could be prepared along a north and south road leading to the bay.
O
RECEIVEDT
JUN 12 1930
9.5, 9 ºff-STORE DEVELOPMENTS
IN GREAT BRITAIN
Trade Information Bulletin. No. 697
O5
2.85
3.Get
UNITED STATES
WASHingtoN : 1930

FOREW ORD
The interest displayed in this country in the rapid growth of chain

distribution gives point to a study of similar developments in other
countries. Nowhere abroad have branch selling methods been so
widely adopted as in Great Britain, and, consequently, in no other
country are the problems arising in this connection so nearly com
parable with those with which we are familiar in the United States.
In some respects, notably in the spread of cooperative retailing,
British trends have not been paralleled in this country, but on the
whole similar methods have been followed with similar results.
American practices and experience, particularly in matters of
advertising and display, have greatly influenced the expansion of
British branch systems; and, in fact, Americans have to a consider
able extent actively participated in this expansion. To mention two
outstanding examples: One of the largest British department-store
groups is the creation of American management, and an American
chain-store company is now operating nearly 400 branches in Great
Britain.
Many American products, particularly those normally sold through
chain stores in this country, are well adapted to this means of distri
bution in the British market. To manufacturers of such articles the
branch systems of Great Britain offer opportunities deserving the
most serious consideration.
For a country where branch merchandising has been as highly
developed as in Great Britain, a complete review covering all com
panies operating such systems, even were such a compilation possible,
could not be undertaken within the limits of the present publication.
Mr. Charles has, therefore, confined his report to a discussion of
general conditions, giving specific examples to illustrate develop
ments. Lists of leading branch companies are included, and further
details concerning them are in most cases available on request to
this bureau.
The development of chain stores in various foreign countries has
been reviewed from time to time in articles in Commerce Reports.
A list of these articles will be found at the end of this bulletin, and
copies of them may be obtained from this bureau on request.
MAY, 1930.
( 11)
CHAIN-STORE DEVELOPMENT IN GREAT BRITAIN
By Ralph S. Charles, Assistant Trade Commissioner, London
GEN i RAL TYPES
There are in England various types of organization which may be

considered as “chain’’ systems, in that they operate through numer
ous branches. In the first place, there are the multiple shops, which
in general correspond to the chain stores as understood in the United
States. Distinct from these, though operating by somewhat the same
methods, are the cooperative societies. Finally, there are the depart
ment-store groups, usually provincial extensions of large stores in
London or other principal cities. -
The development of branch retailing in Great Britain has extended

to practically, all types of consumers' commodities. This develop
ment was at first very slow, but since the war it has been especially
marked and lately has been increasing at a rapid rate.
Most of the successful multiple-shop companies originally started
with one shop, often in the Provinces, and by financing new shops out
of earnings, gradually became national in character.
The first successful multiple-shop organization in Great Britain
was founded by Sir Thomas Lipton, who commenced building a
chain of retail provision shops in Glasgow in the sixties. He con
centrated on small, nonperishable, packaged goods, such as tea, spices,
and dry foods and sold them on a cash-and-no-delivery basis. It
was realized that, in quantity buying of certain products, in the cen
tralization of management, and in the establishment of factories for
producing many of the goods sold, economies could be eſtected which
were not possible with the average individual retailer.
MULTIPLE SHOPS
VISIBLE AN ID IN Visibi, E
There are two types of multiple-shop organizations in Great

Britain—the visible and the invisible. The former openly advertise
the locations of their branches, which in many instances are recog
nizable by the more or less standardized shop fronts, window displays,
and interior layouts. The latter type comprises organizations devel
oped by manufacturers or wholesalers that have established their own
system of retail shops in order to make up the loss of trade resulting
from the failure of independent retailers or from their absorption by
other multiple-shop companies. These manufacturers and whole
salers, in many cases, have been obliged to take over independent
retailers who have become indebted to them, retaining the original
owners as managers. The identity of such a multiple-shop organiza
tion, owned and operated by manufacturers or wholesalers who are
(1)
2
known only as such, is concealed—not only because it would be

decidedly disadvantageous to have it known that the owners were
competing with other retailers who are their customers, but also
because of the great reluctance of the public generally to break away
from the long-established independent retailer to whose merchandise
and service they have become accustomed.
Under these conditions a complete survey, including the invisible
type of multiple-shop organizations, is impossible. Of the visible
type it is estimated that there are at the present time nearly 2,200
organizations, operating more than 32,000 branches in 25 lines of trade.
The following table shows the number of such organizations and
branches, classified according to the type of trade, in comparison with
the totals of independent shops.
NUMBER of VISIBLE MULTIPLE SHOPS IN GREAT BRITAIN, CLASSIFIED AccorDING
TO TRADES
Multiple-shop
| groups
- -
Line of trade
—
| Main or- rºl.
Inde- Total
shops
: ganiza-
tions
Branches' t
i -
------ - I
i
Athletic outſitters 11 | 46 , 1, 199 1,245
Bakers-------- . 175 1,520 17,625 19, 145
BookScllers and - 20 2, 100 18,480 20,580
Boots and shoes - 226 3,600 49,874 53,474
Butchers-----------------
Chemists and druggists----
Fishmongers-- 30 320 : 8,070 8,390

Fruiterers-------------------- 5 175 26.290 26,465
Furniture (house ſurnishers) -- 42 370, 5,208 5,578
Gown shops 5 75 6,782 6,857
Grocers 41; 6,9. 5. 65,
Hattel 3 25 2,415 2,640
IIosier 1 40 5.3io 5,380
Ironmongers and hardware- 82 950 10,268 20, 218
Jewelers---------------------- 44 200 6,706 6,996
Men's furnishings (outfitters) 196 1,470 5,904 7,374
Music sellers, ct c------------- - 41 220 3, 559 3,779
Restaurants and caterers--- 43 650 7, 157 7,807
Sewing machines----------- - 1 900 i---------- | 900
Tobacconists---------------------- -- - 95 860 31,905 32,705
Variety shops (3d. and 6d. general) --- -| 23 560 #10 970
Wines and SIPirits--------------------- -- 102 1,085 6, 298 | 7,383
Total---------------------------------------------------- 2,242 32,025 423, * 455,620
l
BOOT AND SHOE TRAIDE AN EXAMPLE
The development of multiple-shop organizations in the boot and

shoe trade has attained considerable proportions within the last dec
ade. The organizations are of two distinct types—those operated by
the manufacturers of shoes as outlets for their production and those
operated by organizations that do not manufacture but that buy in
the open market.
It is estimated that there are approximately 15 groups of manu
facturing retailers, with a total of 1,300 branches. They may them
selves actually produce only a small proportion of the shoes they sell;
most of them sell their shoes under a trade name or brand, and in
some instances they sell several different brands. In order to reach
-
3
all classes of consumers they often operate stores in various sections

of a city, selling different qualities and brands of shoes according to
the purchasing power of the locality.
Of the nonmanufacturing organizations, it is estimated that there
are no less than 50 groups of retail shoe chains, with approximately
2,000 outlets. Several of these groups are important factors in the
wholesale trade, absorbing the entire production of many small shoe
factories and carrying on an extensive export business with the
British colonies.
COMBINATIONS OF COMPANIES
The trustification and amalgamation of large capitalistic distribu

tive concerns is continually taking place. Through interlocking direc
torates certain of the larger multiple-shop companies have come
closer together and, by pooling their interests, have diminished
competition in buying and selling.
The Meadow Dairy Co. (Ltd.), which controls Broughs (Ltd.),
Pearks Dairies (Ltd.), Sherry's Dairy Co. (Ltd.), and Neale's Tea
Stores (Ltd.), has made arrangements with the Home & Colonial
Stores (Ltd.) for an effective combination of their interest. In order
to facilitate joint management an interchange of directors has been
agreed upon. The Meadow Dairy Co. and Lipton (Ltd.) are closely
associated, since they are more or less controlled by the great Jurgens
margarine interests. Together with two or three smaller concerns, the
Maypole Dairy Co. and the Home & Colonial Stores are very closely
associated with Van den Berghs (Ltd.), the other great margarine
concern. Finally, these two groups have been brought even closer
together through the complete amalgamation of the Jurgens (Ltd.)
and the Van den Berghs margarine interests, now known as the Mar
garine Union (Ltd.).
The recently eſtected combination of Lever Bros. (Itd.) and the
Margarine Union under the name of Unilever (Ltd.), through its
associations in various parts of Europe, largely controls the manu
facture and distribution of margarine, soap, and other products. The
fusion of interests between the two concerns is a link in a chain of
enterprises of extraordinary extent, comprising, as it does, Anton
Jurgens, Van den Berghs, Lever Bros., British Oil & Cake Mills (Ltd.),
Niger Co. (Ltd.), African & Eastern Trade Corporation (Ltd.),
Home & Colonial Stores, Maypole Dairy Co., Meadow Dairy Co.,
Lipton, Mac Fisheries (Ltd.), D. & W. Gibbs (Ltd.), and many other
manufacturing, trading, and retail firms.
While the tendency for combination and trustification has been
emphasized in the food trades, it is also more or less prevalent in the
dry-goods, boot and shoe, drug, tobacco, and confectionery trades.
. CENTrALIZED BU YING
Many multiple-shop organizations maintain central buying depart

ments, since by purchasing in bulk and eliminating the wholesaler or
jobber they can secure greater uniformity of products and more
advantageous terms. They have thus also greater power to control
and stabilize selling prices and can effect economies in transporation.
There are, however, several disadvantages in centralized buying,
such as the risk of overbuying, misjudging the market, discouraging
initiative, etc.
4
Centralized buying is most successful when applied to staple or

standardized merchandise, which does not involve the style factor to
any great extent. Many organizations have been successful in permit
ting their branch managers to purchase, outside of staple lines, the
types of merchandise which they have found to sell most readily and
profitably in the district.
LOCATION OF BRANCHES
Most of the larger multiple-shop organizations determine the sites

of their branch shops through careful study of the more important
elements. They use the orthodox method of “clocking” the number
and class of people passing likely locations at various times during the
day. They also analyze a given locality, not only from a competitive
point of view but from the prospects of its future expansion. It is a
usual practice to pay retainer fees to real-estate agents in various
parts of the country in order to gain current information of likely sites
becoming available through expiration of lease or through new build
ing developments.
The multiple-shop system has flourished principally in the great
cities with expanding suburban districts, where each new shopping
area forms a site for another branch. Blocks of stores are continu
ally being built at the intersection of streets in the new residential
suburbs, and these are largely acquired by the multiple-shop com
panies. One may enter any shopping area in the suburbs and
except to find a branch store of practically every type of multiple
shop organization.
Bir ANCH MANAGERS’ RESPONSIBILITIES
The important chain organizations have well-defined policies

governing the extent of a branch manager's responsibility and
authority. The managers are usually responsible for the upkeep
and appearance of their stock and shop as well as for the supervision
of their staffs. They deposit cash receipts at the local branch of the
firm's bank several times weekly. Some companies which have
elaborate systems of stock control require their managers to submit
daily reports of stock and sales as well as cash receipts.
Those multiple-shop organizations that are national in scope have
divided the country into sections and employ district supervisors
for inspection purposes. These districts may be subdivided into
smaller areas, each in charge of an assistant inspector who is respon
sible to his district supervisor. The supervisors regularly inspect the
branches in their districts, examining accounts and displays and
taking stock. They also handle complaints of various sorts and
make periodic reports to the head office.
PRICE CUTTING
Price cutting appears to be on the increase in Great Britain, and

the practice seems to have aſtected all types of retail distribution.
Though multiple-shop methods and prices tend toward standardiza
tion, there are, nevertheless, several organizations which make it a l
rule to cut prices in order to attract trade. This practice is inclined
to lead to the selling of inferior goods. º
5
The grocers, particularly, feel this increase in “cutting” and,

through the Grocers' Proprietary Articles Association, they are
making every effort to combat it. This association maintains a list
which is altered every month, giving publicity concerning price
cutters to the various manufacturers and wholesalers. Its influence
is gradually being felt. With the very rapid growth in turnover of
proprietary articles, price maintenance has been correspondingly
difficult. Concerted action by the Chemists' Proprietary Articles
Association, however, has been particularly effective in resisting price
cutting.
Some multiple-shop companies, on entering a new locality, reduce
prices to attract trade; but such a procedure is usually only tem
porary, and their prices tend to seek the community level.
PROPRIETARY MERCHAN DISE
The multiple-shop companies and particularly the cooperative

societies have been slow to take up proprietary brands. Opposition
has been strong on the part of the Cooperative Wholesale Society,
which insists that its own brands be pushed consistently, since it
supplies the retail societies with about half of their stocks. But, as
national advertising is gradually persuading the public to demand
established proprietary articles, the multiple-shop organizations are
being compelled to alter their attitude.
On the other hand, vigorous protests by retail grocers against the
action of manufacturers in supplying to sixpenny bazaars (Wool
worths, etc.) proprietary goods hitherto distributed mainly or exclu
sively through the grocery trade, have decided many important man
ufacturing firms to confine their business within the customary
channels. The Association of Grocers is continually at odds with
manufacturers over this particular question, and it has even been
suggested that a “white list” be compiled which would include only
those manufacturers and firms who refuse to have dealings with
cooperative societies and multiple-shop companies.
I) ELIVERY
Although the elimination of delivery was one of the economies

effected by many chain-store companies during their early days, sev
eral of the larger firms have taken to the delivery of purchases that
exceed a given amount. In many instances, however, the question
of delivery is left to the discretion of the branch manager. The
most common means of delivery is the tricycle with a cabinet or basket
attached.
Owing to the increasingly acute traffic congestion in London and
the larger provincial cities the question of remote delivery is receiving
considerable attention from department stores. Lewis's (Ltd.)—by
far the largest provincial department-store company—has recently
opened special premises in Manchester for warehousing heavy stock.
The merchandise is sold by sample in the store and delivery is made
from the warehouse, thus effecting a considerable economy in space
in the actual store. Gamages (Ltd.), in London, in connection with
their new premises in Oxford Street, have established a distribution
depot at Cricklewood, 3 miles northwest of London, to which all
merchandise that is to be delivered will be sent in bulk and there
6
sorted according to the individual areas in which deliveries have to

be made. Owing to the shortage and value of space in the center
of London and in the larger provincial cities, it is believed that remote
delivery will be generally adopted.
ADWERTISING METHODS
The chain system of merchandising offers an extensive field for

modern advertising methods. With the increased competition be
tween multiple firms selling at approximately the same price, the
appeal of the product to the public can not be based entirely on price.
Multiple-shop companies, which during the early stage of develop
ment conſined their advertising efforts mainly to the circulation of
handbills and price lists, now are utilizing a great variety of advertising
methods.
The majority have recognized the importance of displays and have
shown a decided tendency to standardize their shop fronts, window
displays, and interior layouts. Many companies have definite dis
play policies and maintain special departments at headquarters where
“set-ups” are worked out by experts for the benefit of branch man
agers, who are taught by post or by traveling experts. One great
difficulty, particularly in London, in the way of making any radical
changes in shop fronts is the reluctance of municipal authorities and
owners of buildings to allow any alterations that would change the
general architectural scheme of a building, even though it be decidedly
antiquated. In some cases multiple shops employ architects who
have endeavored to create, without actual uniformity of detail, a
distinctive appearance common to the various branches.
In addition to standardized shop fronts and window displays, the
companies are employing both national and local newspapers, trade
journals, and posters and billboards. Direct-mail campaigns are
frequently organized, and shop demonstrations featuring special
products are common. While there is an increasing amount of ad
vertising done in the cinemas, there is none at all over the radio, for
the Government controls broadcasting and gives no place to adver
tising on its programs. As regards local press advertising, the mul
tiple-shop companies have come to realize that they must support
the local newspaper in every town in which they operate if they
expect the town to support, them.
COSTS AND PROFITS
Distribution costs and profits vary from trade to trade, and the
differences are accentuated by the fact that in some trades there is
often no wholesale distribution between the manufacturer and the .
retailer. Complex and diverse conditions render the determination

of distribution costs particularly difficult.
In the boot and shoe trade, as previously mentioned, there are |
both manufacturers and wholesalers operating their own multiple

shop organizations and selling their products direct to the consumers.
One of the largest clothing manufacturers follows the same practice;
and tobacco, confectionery, and foods are a few of the other products
similarly distributed.
The Food Council recently examined the trading accounts and
balance sheets of 96 private traders (174 shops), 17 limited companies
7
(37 shops), 18 multiple-shop firms (3,030 shops), and 21 cooperative

societies in the retail meat trade for the years 1926–27. The results
of this investigation are analyzed in the following table:
CoSTS AND PROFITS IN BRITISH RETAIL MEAT TRADE
t . I
|
, , Private traders Limited companies Multiple-shop firms ('')operative socie

(less than 8 shops) (less than S shops) (8 shops or Inore) | ties
|
---- - -
! -- - - - --
Item | - | | |
Amount Percent Amount Percent 'Amºunt' percent Aºnt Per cent
per shop on sales per shop on sales per shop on sales society | On Sales
––– - – -—----------------
----- —}
Average annual sales. £10,431 - - - - - - - - - £17.365 - - - - - - - - - C+, 454 - - - - - - - - - - C152,857 ----------

Gross profit. --------- 1,976 |
l 18.9 3,834 22. 1 , 1,079 | 24.2 38,591 | 25.2
Expenses (including : - | l
management) ------
Proprietor's manage- | 1,502 14.4 3,025 -
17. 4 I
918 -
20.6 20,780 13. 5
ment allowance. ---, 163 . 1. ^ -------------------- | 2 0.04 ||---------- ----------

Net profit------------ I 474 4. 5 809 4.7 161 ; 3.6 17,811 11. 7
- | |
Source: The Economist (London), Aug. 17, 1929.
For certain of the concerns considered in the foregoing table, the

Food Council has been able to ascertain the average capital and the
per cent of net profit, as follows:
Itein |
Private
...
| Limited
COIllpa-
|Multiple
shop
: traders nies firms
Firms considered-----------------------------------------------number-- 64 1() 12

Shops considered.--------- do---'
----------------------- - - - - - - - - - 132 30 246
Average capital per shop- pounds sterling - . .
- - - - 884 1,803 782
Net profit on capital.------------------------------------------- per cent --" 51. 1 27.3 28.7
;
Source: The Economist (London), Aug. 17, 1929.
It is estimated that wages is the principal item of operation costs

in the multiple meat shops, constituting about 8 to 10 per cent of
sales. The net profit on sales probably lies between 5 and 7 per cent.
In a well-managed meat chain the annual turnover may be anything
from £4,000 to £12,000 for a single shop.
Aver AGE OPERATING RESULTS OF Two MULTIPLE-SHOP CoMPANIES
Alinºid | Gross * ~*
Net profit
> ...
| turnover - -
Trade
- Branches; (*
(number] , ... (ºre
profit Per cent
in º, . Anºt, of tº:
| | branch) per annum; "over
|
- - - - - - - - - - -- - - —— ---- - ——— — . i - -- ----
Cheap groceries and provisions-------------------- | 7:0 C15, 600 23 C585, ()00 5

Cheap meats-------------------------------------- - 65 11, (100 2ſ) 28, 600 4
Source: Economic Journal (ſ.ondon), September, 1920.
DEPARTMENT-STORE TRUSTS
Another feature of the multiple-shop development in Great Britain

is the tendency of some of the larger department stores in London to
take over and operate as branches similar stores in the large pro
vincial cities. These stores usually maintain their individual charac
112827—30—2
8
ter, so far as the public is concerned, but are controlled by a central

organization. The development of department-store trusts has been
so rapid during the past 10 years and their methods of financing and
operation so eſficient that they have found it possible to operate their
stores on the multiple-shop system. They are organized for bulk
buying and have simplified distribution and standardized methods of
operation.
The more important organizations of this type are: Debenhams
(Ltd.), which controls Marshall & Snelgrove (Ltd.), Harvey, Nichols
& Co. (Ltd.), Debenham & Freebody, and the Drapery Trust (Ltd.)
operating some 60 department stores in the Provinces; Harrods (Ltd.),
which, in addition to its own large organization, operates D. H.
Evans & Co. (Ltd.), Kendal, Milne & Co., and Dickins & Jones
(Ltd.,); John Barker & Co. (Ltd.), as well as operating their own
stores, have acquired the business of Derry & Toms, of Ponting Bros.
(Ltd.), and of Zeeta Co. (Ltd.); and Selfridge & Co. (Ltd.), who
operate their own store in Oxford Street, control 20 Selfridge Pro
vincial Stores, and William Whitely Ltd.) in Queen's Road, and own
the John Thriſty (Ltd.) and the 21 John Quality shops. Lewis's
(Ltd.) have large department stores in London, Liverpool, Manches
ter, and Birmingham, all operated under their own name. The
United Drapery Stores (Ltd.), controlled by Henry Glave (Ltd.),
operate 10 department stores, all of which sell only for cash.
PROFITS AND ('OSTS --ASSOCIATIONS
The average net profit (after payment of debenture interest) for

59 stores of the department type, during the 12 months ended June
30, 1929, was £10,229,145, or 13.2 per cent above the similar figure
for the preceding year. Of this average, ordinary dividend accounted
for £5,732.732, preference dividend for £2,603,521, and reserve, etc.,
for £1,892,892. Interest at 5 per cent was paid on debenture capital
averaging £13,778, 161; preference dividends averaged 6.6 per cent;
and ordinary dividends 14.4 per cent (14.1 per cent in preceding year).
The average cost percentages on total sales for London, suburban
and provincial department stores, as supplied by the Incorporated
Association of Retail Distributors, is shown in the following table:
IDEPARTMENT-STORE Costs
[[n average percentages of total sales]
Half year ended

Item |---Feb ---
1914 | 1922
Total sales (index number) ---

Salaries, wages, and bonuses
|
i
100.00
9.50
249.3m
9.72
Advertising and printing-- | 1. 36 3. It
Rent, rates, and taxes. -------------------------------------------- 2.06 1.43
Transport and postage---------------------------------------------- | 1. B0 1.73
Depreciation, repairs, etc.----------------------------------------------------- . 89 - 94
Total expenses---------------------------------------------------------------------| 18.67 19.31
Source: W. R. Dunlop; Economic Journal (London), September, 1929.

-
9
Practically all the more important retailers in the dry-goods trade

are members of the Incorporated Association of Retail Distributors,
which to some extent corresponds to the National Retail Dry Goods
Association in the United States. The association issues a monthly
report on trade, based on returns by members, and to a limited extent
exchanges figures on various items of expense, etc., in addition to
information and ideas on various phases of retailing.
COOPERATIVES
COMPETITION WiTH MULTIPLE SHOPS
The radical change in retail and wholesale distribution that has

taken place in Great Britain, particularly in the grocery and provision
trades, has been expedited by the intense rivalry and keen competition
existing between the multiple-shop organizations and the cooperative
societies. Both groups are highly organized and largely control the
sources of supply of many of the commodities they sell.
These two types of retail distributors make the same appeal to the
public-—namely, value for money. The only outstanding difference
between the two systems, so far as the consuming public is concerned,
is the fact that the cooperative societies pay quarterly or semiannual
dividends and the multiple-shop organizations, as a rule, do not.
Many of the large multiple-shop companies in the provision trades,
however, have considered paying a bonus or rebate as a further induce
ment to registered customers. This practice, which has been
employed rather extensively in the north of England and in a few
other parts of the country, usually has taken the form of a discount
given in kind to registered customers either quarterly or semiannually.
Whether such payments to purchasers will become general is uncertain,
but the fact that they are being considered by the multiple-shop
companies is an indication of the seriousness with which the competi
tion from cooperative societies is regarded.
It seems not improbable that competition among the multiple-shop
organizations may prompt them to look for special agencies under
which they will be able to oſter exclusive, branded imported products
and thus avoid, in respect of these lines, the close price competition
that prevails in domestic merchandise handled more generally.
()n the other hand, the development of the multiple-shop system
has had a decided tendency to stimulate the cooperative movement in
Great Britain. The exceptionally keen competition and increasing
rivalry in the provision trade is becoming intensified, and many of the
new cooperative branches are attempting to secure the middle-class
custom on which the multiple shops largely depend. The extension
of credit facilities to members, the development of modern methods of
merchandising, smarter shops, more attractive merchandise displays,
better shop lighting, and improved service are some of the factors on
which the cooperative societies base their appeal for the better-class
trade.
GROWTh OF COOPERATIVES
The cooperative idea was first successfully put into practice in

1844, when 28 poor flannel weavers in Rochdale, by 2d. and 3d. Sub
scriptions, secured a capital of £28 and opened a shop to sell flour,
butter, sugar, and oatmeal. Although there had been several
10
attempts at cooperative selling in other parts of the country, they

failed when it came to the question of distributing profits. The
Rochdale success was due to a different method of dealing with profits.
They determined that after paying 5 per cent interest on the share
capital, all profit should be allotted to the purchasing members in
proportion to their purchases and be capitalized in the name of the
member entitled until his shares amounted to £5. Thus, each mem
ber found it to his advantage to purchase at their store and to intro
duce new purchasers.
The cooperatives have become particularly strong in the north and
midlands of England and in Scotland, especially in areas of large
industrial employment, as in the textile and coal-mining districts.
They are much rarer in the less industrialized districts.
An analysis of the growth of cooperatives reveals the fact that in
general the societies continued to increase steadily to 1903, when they
numbered 1,455. Since then they have declined in number, but their
membership has rapidly increased. The proportion of membership
to population in the United Kingdom has expanded from 5.83 per
cent in 1911 to 9.52 per cent in 1922 and to about 12.8 per cent in
1928.
The following table shows the growth of cooperative retail societies
from 1881, by 10-year periods:
DEVELOPMENT OF CoopBRATIVE RETAIL SocIETIES IN GREAT BRITAIN
t |
- | Average Average
Year Societies Members members . Year Societies | Members | Imembers
: per society per society
---- -- - - - - ..! - -
|
1881---------- 97.1 547, 211 - 564 1911---------- 1,403 2,640, 429 1,882
1891---------- 1,307 1,044, 675 709 | 1921---------- 1, 352 4, 548,557 3,364
1901---------- 1,438 1, 793, 167 1, 247 . 1928---------- 1,245 5,885, 135 4,727
It is estimated that the 1,245 societies in 1928 operated more than

12,000 branch shops. Trade during the year totaled £333,613,000
and gave a net surplus of £28,071,000. Share capital amounted to
£99,328,000, an average of £16.88 per member. Stock in trade
during the year averaged £19,294,000, with a turnover frequency of
10.85.
The English Cooperative Wholesale Society, founded in 1863, is
the trading federation of the local cooperative societies. This organ
ization has expanded rapidly; and at the end of 1928 its total cap
italization, both share and loan, amounted to £57,083,598, with sales
for the year of £87,735,282. Comparable figures for the Scottish Co
operative Wholesale Society were £8,212,466 and £15,723,370 and
for the Irish Agricultural Wholesale Society, £187,765 and £543,896.
These societies operate their own factories, warehouses, ships, and
farms, and conduct the bank of the societies.
METHODS
Membership is open to all who pay a shilling fee and sign for a
£1 share, which can be paid up out of profit. Members may for the
most part withdraw their shares in cash at par. A record of each
member's purchases is kept by means of metal tags or otherwise; at
-
| ]
the end of each quarter a limited amount of interest, not more than
5 per cent, is paid on shares. While some societies pay a proportion
of profit to the employees, all societies divide the surplus among the
members in proportion to their purchases, nonmembers usually re
ceiving half dividends. Thus the members in effect obtain their
necessities at cost price.
Cooperative societies are registered under the “Industrial and provi
dent societies act,” which constitutes them corporate bodies with
limited liability and fixes £200 as the maximum that any member
may hold in the share capital.
All kinds of goods are stocked by the cooperative societies, though
articles of food have first place. Some of the societies, in addition to
retailing, engage in manufacture (as bread, clothes, boots, millinery,
etc.), farming or flour milling, usually for their own members but
sometimes for sale to other societies. They also build cottages to let
or to sell to their members, or make loans to members to build or buy
cottages. In addition, they carry on large philanthropic activities,
such as hospitals, schools, and recreational facilities for their members.
It has been estimated that the cooperative societies handle about
one-twelfth of the total retail trade of Great Britain. Their margin
of gross profit varies between 22 per cent and 25 per cent of total sales,
expenses between 12 per cent and 14 per cent, and net profit or surplus
(free of income tax) between 10 per cent and 11 per cent. Profits are
distributed as dividends among members at the rate of about 2s. to
2s. 6d. in the £1 of purchases. The percentage of gross profit is
much the same in the cooperative stores as in the department stores,
but their expenses are less because of lower overhead.
EFFECT OF CHAIN DEVELOPMENT
WHOLESALER, JOBBER, M.A.NUFACTURER
To the wholesaler and jobber the development of the multiple-shop

system is a matter of grave concern, as large-scale buying direct from
the manufacturer by these organizations has an increasing tendency
to eliminate the middleman. The position of wholesalers without
multiple-shop affiliations has become decidedly precarious. In some
cases wholesalers have become purchasing agents for multiple-shop
organizations or for associations of retailers, and in others they have
established multiple-shop organizations of their own. Many whole
salers, on the other hand, are doing all they can to assist the private
shopkeeper to maintain his individuality, even to the extent of offering
financial assistance during difficult periods. The intelligent wholesaler,
however, has realized that it is only by maximum efficiency on the
part of his organization, particularly in the matter of service, that he
can hope to maintain his position.
When the multiple-shop organizations and cooperative societies
were getting started they seemed to offer the manufacturer a good,
steady outlet for his products in large quantities. He was greatly
impressed by their enormous buying power and gladly sold to them,
even to the extent in many cases of ignoring the private trader. If
his products were selling well and repeating satisfactorily, other chains
would taken them on until finally the manufacturer's complete output
was being distributed by the multiple-shop organizations.
However, since the chain stores and cooperatives, through the
Cooperative Wholesale Society, have undertaken to manufacture on
12
their own account, they have tended to eliminate their own distribu
tion of the independent manufacturer's goods, particularly the propri
etary merchandise. On the other hand, many manufacturers, by
well-planned national advertising featuring their own names as manu
facturers of quality goods, have created a popular demand that has
obliged chain stores and cooperatives to stock their products.
INDEPENDENT RETAILERS
The development of the multiple-shop system of retailing is in

tensifying competition and making the conduct of a private business
more difficult. Independent retailers of the weaker and less efficient
type are gradually being eliminated. On the other hand, this com
petition has proved a stimulus to the enterprising trader, where the
business is under his direct control and leadership.
There will always be a large number of people who demand the
highest quality, who want their goods delivered, and who prefer to
trade on credit rather than for cash. The independent retailer who
caters efficiently to this quality market will survive the competition
of the more popular organizations.
Independent retailers, particularly in the food and drug trades, are
meeting the invasion of the multiple-shop system by forming local
associations that are linked up all over the country through their
respective federations. These associations guard against unfair com
petitive methods or discriminating legislation as affecting the individ
ual trader. In most respects they are run along lines almost identical
with those used by the multiple-shop companies: For example, they
cooperate with wholesale firms in buying and advertising, maintain
uniform managerial policies, and in some instances use uniform store
fronts. A more cooperative attitude has been developed, leading to
a more liberal exchange of ideas and a more friendly atmosphere.
These associations are very active in educating and training their
members in scientific methods of retailing, such as simple, standardized
systems of accounting. By cooperative purchasing they are able to
secure prices from manufacturers comparable to those paid by the
multiple-shop companies and, at the same time, are able to maintain
the quality of their goods.
Combined buying among local associations of grocers in suitable
districts has been reasonably successful in several localities. In
this connection the Scottish Federation of Grocers and Provision
Merchants' Associations, which operates through the Scottish Grocers'
Wholesale Association (Ltd.) has been notably successful. This
particular group is engaged in a combined buying scheme that has
succeeded in all departments. During the year 1928 the amount
paid out in deferred discounts or bonuses to members was 150 per
cent above the amount paid out in 1927, and a further 100 per cent
increase was anticipated for 1929. The value of the stock carried
was less than the average amount of one month's trading; while the
value of the stock on hand at the end of the period showed an increase
of only 9 per cent, the sales showed an increase of 44 per cent.
CONCLUSION
Opinions vary, widely as to the ultimate outcome of chain-store

development in Great Britain. Some authorities hold that, owing to
the great economies effected in manufacturing, buying, and selling,
**.
13
multiple-shop companies can deal with supplies in greater bulk,

thereby lowering the cost of handling, reducing overhead charges, and
eliminating waste. Others contend that the essential costs of assem
bly, warehousing, and distribution of goods into retail channels are
so great that the savings of multiple-shop methods are within the
reach of every intelligent independent retailer. Many also believe
that the popularity of the multiple-shop method of distribution will
cease when the independent retailer has raised his standard to con
form with the pace set by such competition.
The multiple shop favors the customers who purchase their goods
for cash and who carry their purchases away with them. In a general
sense they do not receive family orders covering a variety of articles.
On the other hand, the independent trader offers a friendly, personal
service and satisfies the individual tastes of each of his customers,
whom he knows and who know him through long and intimate service.
The attitude of the public toward multiple-shop merchandise is,
generally speaking, favorable. There is no evidence of prejudice,
except in the case of members of cooperative societies; any retailer
who is enterprising and gives value for money is readily supported.
The public likes open display and the factility provided for handling
goods and making selection. Wage earners, to whom price is of
paramount importance, tend to buy from the multiple shops.
There is a strong probability that both the multiple shops and the
independent stores will continue to operate side by side.
SOME LEADING BRITISH BRANCH SYSTEMS
The line of trade, number of branches and, in some cases, the

financial results for several leading British branch systems are shown
below.
I}ranches,
approximate
number
..Athletic outfitters: A. G. Spalding & Bros. (Ltd.) - - - - - - - - - - - - - - - - -
Bakers:
Zeeta ('o. (Ltd. (owned by John Barker & Co. Ltd.)) . . . -- . . . . . 4()
Pritchards Restaurants (Ltd.). - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 20
Boots and shoes:
J. Sears & Co. (True-form Iłoot ('o.) (Ltd.). - - - - - - - - - -- --- - - - 722
Freeman, Hardy and Willis ( Ltd.) .--. - - - - - - - - - - - - - - - - - - - - 5:30
Lennards (Ltd.) . . . - - - - - -- - -- ---- --
- - - - - - - - - - - - - - 207
Saxone Shoe Co. (Ltd. --- - - -- -- - - - - - - - 1()-1
W. Barratt & ('o. (I,td. - - - - - - - - - - - - - - - - - S1
Mansfield Shoe ('o. (Ltd.) - - - - - - - - - - - - - - - - - - - - - - - - - - - (5S
Lilley & Skinner (Ltd.). - . . . . . . . --- - - - - - - - - - - - . . .. . .. --- - - (57
H. l. Itandall (Ltd.). - - - - - - - - --- -- - - - - - - - - - - - - - - - - 54
('arlton Shoe Co. ( I,td.) . . . . - - - - - - - - - - - - - - - - - - - - - - - 50
Booksellers, news agents and stationers: W. H. Smith & Son Ltd.) - - - - - 1. 533
Hutchers:
Union ("old Storage ('o. (Ltd.) . . -- . . . _ 3, ()()() - - - - - - - - - - - - - - - - - -
Anglo-Argentine ('old Storage & Produce ('o. (Ltd.) -- . - - - - - - - - - - - 2, 000

Chemists:
Boots, Cash Chemists (Ltd.). - -- --- - --- ------ -- - ------ - -- - S40
Taylor's Trust (Ltd. , ; controls—
Taylor IDrug Co. (Ltd.) - - - - - - - - - - - -. - --------------------- 210
Taylor's Midland (Ltd.) - - - - - - - - - - - - - - - - - - - - - ----- - - - 120
Parkes Chemists (Ltd.) - - - ------ - - - - - - - - - - - - - - - - - - - - 42
Mortons (Ltd.) - ---- - - - - - - - - - - - - - - - - - ------------ 22
Timothy Whites (Ltd.) - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 105
Hodders (Ltd.)----------------------------------------- - - 40
14
Branches,
approximate
‘Confectioners: number
Maynards (Ltd.)---------------------------------------------- 230
R. S. McColl (Ltd.)------------------------------------------- 120
Charles & C. Fox (Ltd.) - - - - -4-
- - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - -- 20
IDairies:
United Dairies (Ltd.)------------------------------------------ 650
Express Dairy Co. (Ltd.)-------------------------------------- 80
Drapers:
Drapery Trust (Ltd.)------------------------------------------ 60
Selfridge Provincial Stores (Ltd.)-------------------------------- 20
United Drapery Stores (Ltd.)----------------------------------- 10
Harrods (Ltd.)------------------------------------------------ 4
John Barker & Co. (Ltd.)-------------------------------------- 3
Selfridge & Co. (Ltd.)----------------------------------------- 2
Fishmongers: Mac Fisheries (Ltd.)---------------------------------- 400
Gown shops:
Morrisons (Ltd.)---------------------------------------------- 26
Mentone (ltd.)----------------------------------------------- 16
Style & Mantle----------------------------------------------- 10
Grocers: -
Maypole Dairy Co. (Ltd.)-------------------------------------- 1,050

Home & Colonial Stores (Ltd.) --------------------------------- 1,050
International Tea Stores---------------------------------------- 958
Meadow Dairy Co. (Ltd.)-------------------------------------- S72
Lipton (Ltd.)------------------------------------------------- 600
George J. Mason (Ltd.)---------------------------------------- 300
Joseph Burton & Sons (Ltd.)----------------------------------- 280
Hunters the Teamen (Ltd.)------------------------------------ 200
World's Stores (Ltd.)------------------------------------------ 199
J. Sainsbury (Ltd.)-------------------------------------------- 170
David Greig-------------------------------------------------- 170
Galdens (Ltd.)------------------------------------------------ 160
J. Quinn & Sons---------------------------------------------- 150
Walter Wilson (Ltd.)------------------------------------------ 146
W. H. Cullen (Ltd.)------------------------------------------- 121
Andrew Cochrane (Ltd.)--------------------------------------- 114
Thrift Stores (Ltd.)------------------------------------------- 106
James Duckworth (Ltd.)--------------------------------------- 101
Pegram's Grocery Stores--------------------------------------- 100
Furniture and furnishings:
Jay's (Ltd.)-------------------------------------------------- 140
Jackson's Stores (Ltd.)---------------------------------------- 60
Times Furnishing Co------------------------------------------ 32
Hackney Furnishing Co. (Ltd.)--------------------------------- 20
Fruiterors:
T. Walton & Co. (Ltd.)---------------------------------------- 60
Direct Produce (Ltd.)----------------------------------------- 47
Amalgamated Fruiterers (Ltd.) --------------------------------- 37
General stores: -
F. W. Woolworth & Co. (Ltd.) --------------------------------- 375

Marks & Spencer (Ltd.)--------------------------------------- 140
Haberdashers:
Bradleys (Ltd.)----------------------------------------------- 103
Jacksons (Ltd.)----------------------------------------------- 101
Meakers (Ltd.)----------------------------------------------- 45
Swears & Wells (Ltd.)----------------------------------------- 3S
Hope Bros. (Ltd.)--------------------------------------------- 37
Mortimers (Ltd.)--------------------------------------------- 35
Horne Bros. (Ltd.)--------------------------------------------- 23
Austin Reed (Ltd.)-------------------------------------------- 18
Hatters: Dunn & Co. (Ltd.)---------------------------------------- 107
Hosicry: Etam (Ltd.)--------------------------------------------- 40
Ironmongers:
J. Salmon & Son (Ltd.)---------------------------------------- 7
Hopes (Ltd.)------------------------------------------------- 40
Jewelers: James Walker (Ltd.)------------------------------------- 36
15
Branches,
Musical instruments, theater tickets, etc.: approximate:
Reith, Prowse & Co. (Ltd.)— number
Branches------------------------------------------------- 45
Agencies------------------------------------------------- 114
Audition salons------------------------------------------- 91
Restaurants and dairies:
J. Lyons & Co. (Ltd.)----------------------------------------- 250
A. B. C. Tea Shops.-------------------------------------------- 180
Express Dairy Co. (Ltd.)-------------------------------------- 80
Slaters & Bodega (Ltd.)---------------------------------------- 72
Fullers (Ltd.)------------------------------------------------- 27
Sewing machines: Singer Sewing Machine Co. (Ltd.) ------------------ 900
Tailors:
Rego Clothiers (Ltd.)------------------------------------------ 82
Prices, Tailors (Ltd.)------------------------------------------ 75
Tobacco:
Finlay & Co. (Ltd.)------------------------------------------- 500
Salmon & Gluckstein (Ltd.) ------------------------------------ 150
Wine shops: Victoria Wine Co. (Ltd.)------------------------------- 110.
FINANCIAL RESULTS OF CERTAIN BRANCH SYSTEMS
Boots and shoes: Freeman, Hardy & Willis (Ltd.): Capital, £1,662,500; net
profit (December 31, 1929), £270,865; dividends—preferred £45,000, ordinary
£225,625 (preference 20 per cent, deferred, 55 per cent).
Butchers: Union Cold Storage Co. (Ltd.): Capital, £12,000,000; net earnings.
(1928), £825,320; dividends—preferred £720,000 (6, 7, and 10 per cent),
ordinary £100,000 (10 per cent).
Chemists:
Boots, Cash Chemists (Ltd.): Capital, £2,900,000; profit (1929), £892,700;
dividends—preferred £96,750 (6 and 7 per cent), ordinary, £435,000
(30% per cent).
Taylor Drug Co. (Ltd.): Capital, £600,000; income (1929), £142,465;
dividends—preferred £52,800 (7% per cent), deferred £32,000 (33% per
cent).
Timothy Whites (Ltd.): Capital, £1,500,000; profit (1929), £177,278; divi
dends—preferred £70,898 (7.3 per cent), deferred £58,319 (23 per cent).
Confectioners: Maynards (Ltd.): Capital, £466,100; profit (1929), £115,271;
dividends—preferred £3,390 (6 per cent), ordinary £48,700 (12% per cent).
Dairies: United Dairies (Ltd.): Issued capital, £5,473,884; net profit (1929),
£511,705; dividends– preferred £194,998 (6 per cent), ordinary £222,392
(10 per cent).
Drapers:
Selfridge & Co. (Ltd.): Capital, £3,146,097; net profit (January 31, 1930),
3:415,339; dividends--preferred £178,000 (6 and 10 per cent), ordinary
£150,000 (20 per cent), staff £10,499 (12 per cent).
Gordon Selfridge Trust: Capital, £2,000,000; income (1929), £155,130;
dividends---preferred £60,000 (6 per cent), ordinary £56,000 (7 per cent).
Selfridge Provincial Stores (Ltd.) : Capital, £3,300,000; income (1929),
£218,122; dividends—ordinary £168,000 (7 per cent), deferred none.
Drapery Trust (Ltd.) (controlled by Debenham's [Ltd.]): Capital, £3,900,
000; income (1929), £358,846; dividends—preferred £192,000 (7 per cent),
ordinary £150,000 (10 per cent).
United Drapery Stores (Ltd.): Capital, £1,000,000; net profit (February 28,
1930), £102,413; dividends, £88,000 (11 per cent).
Harrods (Ltd.): Capital, £6,214,848; net profit (January 31, 1930), £834, 188;
dividends—preferred £300,000 (7% per cent), ordinary £443,021 (20 per
cent).
Grocers:
International Tea Co.'s Stores (Ltd.): Capital, £2,100,000; profit (1929),
£643,838; dividends—preferred £71,000 (6 and 7 per cent), ordinary
£300,000 (30 per cent).
Meadow Dairy Co. (Ltd.) and subsidiaries: Capital £1,413,625; profits
(December 31, 1928), £267,518; dividends—preference £63,750 (7% per
cent), preferred ordinary £56,362 (30 per cent), ordinary £112,725 (30
per cent).
16
Grocers —Continued.
Maypole Dairy Co. (Ltd.): Capital, £2,958,333; net profit (January 4, 1930),
£554,587; dividends—preferred £17,500 (5 per cent), ordinary £467,708
(20 per cent and 17% per cent).
John Barker & Co. (Ltd.): Capital, £1,891,330; net profit (January 31, 1930),
#468,865; dividends—preferred £46,175, ordinary £221,266 (20 per cent).
Home and Colonial Stores (Ltd.): Capital, £2,400,000; profit (January 4,
1930), £664, 182; dividends—preferred £129,000 (6 per cent and 15 per
cent), ordinary £395,244 (25 per cent and 15 per cent).
Lipton (Ltd.): Capital, £3,250,000; profit (January 4, 1930), £118,377;
dividends—preferred £43,000, ordinary £22,250 (10 per cent).
Haberdashers: Austin Reed (Ltd.): Capital, £450,652; profits (February, 1929),
tºº dividends—preferred £24,000 (8 per cent), ordinary £22,572 (15 per
cent).
Restaurants: J. Lyons & Co. (Ltd.): Capital, £8,375,838; profit (March 31, 1929),
£908,950; dividends—preferred £395,545 (5, 6, 7, and 8 per cent), ordinary
“A” £359,161 (4s. 6d. per share), ordinary “B” £42,750 (10s. 8d. per share).
Tobaconists: Cope Bros. & Co. (Ltd.): Capital, £375,000; profit (March 31,
1929), £40,748; dividend, £37,500 (12% per cent).
ARTICLES ON CHAIN-STORE DEVELOPMENT A BROAD, PUBLISHED IN COMMERCE

REPORTS
Austria--------------------------------------------------- May 6, 1929
Czechoslovakia-------------------------------------------- Dec. 9, 1929
Penmark------------------------------------------------- Apr. 29, 1929
Egypt.------------------------------------------------ Sept. 23, 1929
Finland (cooperatives) ----------------. --------------------- Jan. 27, 1930
France --------------------------------------------------- I'eb. 4, 1929
Germany. ------------------------------------------------- May 27, 1929
Italy ---------------------------------------------------- Dec. 16, #:
-
Netherlands----------------------------------------------- {\;. º #:
uly 29, 19.
Sweden.--------------------------------------------------- Feb. 17, 1930

Sweden (cooperatives) ----------, --------------------------- Apr. 1, 1929
Switzerland----------------------------------------------- Sept. 9, 1929
Files of Commerce Reports are available in many public and college libraries,
or they may be consulted at the district and cooperative offices of the Depart--
ment of Commerce. Copies of the articles listed above may be obtained on
request from this bureau.
O
2.É.
\ BUREAU OF FOREIGN AND DOMESTIC COMMERCE

WillIAM L. COOPER, Director
THE BALANCE OF
INTERNATIONAL PAYMENTS OF THE
UNITED STATES IN 1929
REGEIV E L BY
t
! JUL. - . 1930 RAY HALL

} -- -- - t Assistant Chief
; O. S. U 1-58 & A. H. Finance and Investment Division
with a foreword by
R. P. LAMONT
Secretary of Commerce
\\ F Trade Information Bulletin No. 698
| O5
C 285
"Ao.6S8
UNITED STATES

WASHINGtoN : 1930

INTRODUCTION
This is the eighth consecutive "annual report on the balance of

international payments of the United States to be published by the
Department of Commerce. The first three reports are now out of
print, but comparable figures for all seven years will be found in the
section entitled “Comparative Balances of Payments, 1922–1929.”
In form these annual surveys are reports on our international com
merce from the banking and foreign-exchange standpoints. They
were undertaken primarily for the benefit of bankers engaged in
financing our foreign trade. But foreign trade and the financing
of it are quite inseparable, and no clear comprehension of our foreign
trade in its broader aspects is possible without these surveys.
Our international turnover last year was approximately 1% billions
monthly. Any analysis of this turnover, such as the present one,
raises all the implications of our trade balance, our stupendous under:
writing of foreign securities, the war-debt receipts, the problems of
our merchant marine, the recent large gold shipments, and our new
status in international banking. Through what is herein called “pro
motive ’’ and “detractive * influences no single item is without some
bearing upon all the others. -
Last year we sold to customers abroad over $5,000,000,000 worth of

commodities. The aggregate profit thereon and the productive em
ployment created by those sales are among the very bases of our
national welfare. In accordance with sound business practice, we
should spare no pains in analyzing the means whereby our customers
abroad acquired the exchange with which they paid us for their
purchases. -
Many of the figures herein are necessarily estimates. The results,

therefore, can not attain to any official standard of accuracy. All
estimates are subject to revision.
The uses and limitations of a balance of payments are described in
the section at the end of this bulletin on Purpose and Methods of
Balances of Payments. Further information on most phases of the
subject can be had from the finance and investment division of the
Bureau of Foreign and Domestic Commerce, under whose direction
the several annual studies have been prepared. Persons interested
in the technique of these annual investigations will note, at the end of
the bulletin the long list of improvements in methods used this year
for the first time.
As in the last three surveys, the collection and analysis of data
in this survey were under the direction of Dr. Ray Ovid Hall, assist
ant chief of the finance and investment division. He is responsible
also for the text of the report.
MAY, 1930.
(II)
FOREWORD
Changes in our foreign trade in commodities during 1929 were

not very significant as regards aggregate values for the year as a
whole. The excess of exports declined by $196,000,000 from the ex
tremely high figure for 1928. In terms of quantity, both exports
and imports made new high records for all time. In terms of value,
merchandise exports increased by $113,000,000. Merchandise imports
increased considerably more, by $309,000,000—-a movement which
may reflect the unusual excess of the yield of foreign investments
over the net export of capital.
The most interesting developments in the cash dealings of the
United States with foreigners in 1929 had to do with the invisible
items. The big current invisibles are getting bigger. American
tourist expenditures abroad established a new high record-–as did the
yields of investments, both the credit item and the debit item. The
annual yield of American Investments abroad is now estimated at
only slightly less than a billion; and the yield of foreign investments
in the United States seems to have risen in 1929 to something like
$414,000,000, partly due to the high interest rates of the year on
the three billions of foreign short-term funds deposited or “put out ’’
in our market.
The private debts of United States citizens to foreigners, approxi
mately $7,500,000,000, are now greater than at any other time in
American history. That means, of course, that in absolute amount
we are now the greatest debtor nation (on private account) in the
world's history, although on the net balance we are one of the most
important creditor nations. The increase of foreign funds in the
United States during 1929 was apparently slightly above $400,
000,000. One looks forward to the possibility of increases of the
same order in the years to come, for foreigners can always find among
American stocks and bonds a great many unexcelled for security
and a great many others unexcelled in their prospects for capital
appreciation. Each year sees a growth in the number of them listed
on foreign stock exchanges. Foreign trading on American stock
exchanges—purchases and sales—during the year totaled well over
$4,000,000,000.
The most important event in our foreign dealings during 1929
was the reduction of $561,000,000 in our net capital export. For the
third time in seven years the year's fluctuation in the United States
net export of capital was above half a billion dollars. The change
of $550,000,000 in 1924 and that of $514,000,000 in 1927 were both in
creases, and the effect was, of course, very different from the effect of
the decrease of 1929. That decrease was no doubt in part responsible
for some of the fiscal and foreign-exchange difficulties of certain
foreign nations, for some of the world-wide recession of business,
and for some of the reduction in our merchandise exports during the
(III)
IV e
latter part of the year and early in 1930; it may also have contributed
to the world decline in commodity prices.
The gold inſlow during the 15 months ended with last October
was one major result of this marked decline in our capital exports.
The net inſlow of gold during that period was $307,000,000, equal
to about 3 per cent of the total gold stock of the world. Delivered
in this country, after it had reduced the credit bases and purchasing
power of the outside world, the gold apparently served no useful
purpose; it merely enhanced our already large stock of “free gold.”
Certainly any practicable means to lessen the fluctuations in the
capital exports of our Nation should receive earnest attention.
Despite the diligence of the department staff in preparing these
anunal surveys, the resulting picture shows only a general perspec
tive. It is well to repeat the compiler’s warning that some of the
results are expressed in precise figures “partly for identification.”
Range estimates—maximum and minimum—would be preferred,
were they less clumsy to handle. One can best appreciate the magni
tudes involved by comparing them one with another. Thus, we find
that in 1929 the trade balance could have been financed by the gross
expenditures of American tourists abroad; that the net yield of in
vestments could have been financed by our underwriting of new
foreign securities; that the war-debt payments could have been
financed by immigrant remittances, or by our payments for ocean
freights; and so on.
It is no longer necessary to justify these investigations of our inter
national economy. They have gone far toward developing what is
really a new branch of economic science. If the leading countries
of the world, including the United States, had all begun similarly
painstaking statements 20 years ago, some of the controversies on
international finance in late years might never have arisen.
R. P. LAMONT,
Secretary of Commerce.
MAY, 1930.
OUR ESTIMATED CASH IDEALINGS WITH FOREIGNERS DURING 1929: A ("ONDENSED
IBALANCE OF PAYMENTS

-
|
- |Cash claims Cash claims
Classes of transactions due from due to I)ifference
| foreigners foreigners
| --
COMMOI)ITY TRANSACTIONS
|
Merchandise, silver, etc. (adjusted)------------- - - - - - - - - - - - - | 5, 490 : 4, 756 +73
MISCELLANEOUS IN visible tria Nsactions
Freight (ocean, Great Lakes, and land transit).---------... - - - - 151 | 260 – 115
Tourist expenditures, minus payments to American vessels and |
minus customs declarations of returning tourists, etc.----- ..... . 180 745 –565
Interest on all private investments (long term and short term) -- . . . . 97.6 414 +562
War-debt receipts. ---------------------------...- . . --- --------. +207
Government transactions (except war-debt receipts).----... . –92
Immigrant remittances------------------------- -- –223
Charitable and missionary contributions.----- - - - - - - - —49
Other items (insurance, motion-picture royalties, cable charges,
patents, Canadian electric power, etc.)----- - - - ----- -- - - - -- . . +25
Total, commodity and miscellaneous--- - -----------------...- +484
NEW PRIVATE LOANs, INVESTMENTs, AND DEPOSITs t :
Net increase in American long-term investments abroad (par value)...-----. -- . 80S –808
Bond discounts and underwriters' commissions. ... --- - - - - - - - - - - - - 26 ------------ +26
Net cash payments for above --------------------------- - - - - –782

Net increase in long-term foreign investments in the ––396
Increase in net debt of AIllerican banks to foreigners-------------. +13
Total, private capital ---

()THER BALANCING ITEMs
Gold shipped or earmarked (net)-------------------------------... 245

Discrepancy due to inaccurate figures.
! Net export of long-term capital, plus or Ininus short-term capital.

* Total errors would be Illuch larger, as errors tend to offset one another.
(v)
ESTIMATED BALANCE OF INTERNATIONAL PAYMENTS OF THE UNITED STATES :
CALENDAR YEARs 1928 (REVISED) AND 1929 (SUBJECT TO REVISION)
1928 (revised) 1929

Classes of international transaction
Credits Debits Balance Credits | Debits ||Balance
|
COMMODITY TRADE
Merchandise exports and imports (as reported)-------- 5, 128 4,091 |+1,037 5,241 4,400 +841
Silver------------------------------------------ - 87 68 +-19 83 64 +19
Bunker coal and oil sales to foreign vessels------ 50 11 +39 46 11 +35
Ship chandling, ship repairs, and tonnage dues- 45 34 +11 54 37 +17
Sale of vessels---------------------------------- 3 3 10 –7
Unrecorded parcel-post shipments-------------- 20 -- 20 20 --------
Adjustments for differences in year-end lags.-----------|-------- 55 —55 43 l-------- +43
Other merchandise adjustments-----------------------|-------- 201 | -201 ||-------- 214 —214
Total commodity trade (as adjusted)------------ 5,333 || 4,483 || +850 5,400 || 4,756 +734
MISCELLANEOUS INVISIRLE ITEMS |
Freight payments and receipts:

Ocean and Great Lakes traſſic--------------------- 133 167 –34 142 20S –66
Railway earnings on transit shipments------------ 14 40 –26 12 40 –28
Foreign inland freight on United States imports---|-------- 20 -20 i-------- 21 –21
Tourist expenditures:
'anada------------------------------------------- 82 256 —174 91 284 –193
Mexican border------- 6 32 –26 38 : –31
Oversea (including West Indies) 75 516 —441 82 517 : -435
Ocean-borne passenger traſſic (by “substitution”) 1.---
Earnings of long-term private investments:
89 -------- +89 94 -------- n
s
+94
Received from American investments abroad--- 817 -------- +817 876 +876
Paid to foreign investors in the United States –270
Earnings of short-term interest and commissions:
Collected from foreigners abroad - +100
Paid to foreigners abroad------ -- -144
Immigrant reinittances-------------------------------- | 25 . 250 —225 24 247 –223
War-debt receipts of United States Treasury: |
Interest------------------------------------------- t 160 3 +157 150 5 +145
Principal | 50 -------- ; +50 62 i-------- +62
Other United States Governinent receipts; United | |
States Government payments; and foreign repre- i | -
Sentations here-------------------------------------- | 53 : 110 ! —57 60 152 –92

Missionary and charitable contributions, etc 5i -51 |-------- 49 –49
Motion-picture royalties---- 6 +64 70 6 +64
Insurance transactions - - - - 70 -------- 70 | 70 --------
Minor miscellaneous items: | !
IImports of Canadian electric power---------------,-------- 3 -3 |-------- | 4 : –4
Foreign subscriptions to American press----------- | 5 3 : +2 5 3 +2
Patents and copyright sales and royalties; legal | | |
ſees---------------------------- is is -------- 15 15 --------
American advertising abroad -. 5 48 —43 5 50 –45
Cablegrams, radiograms, and telephone services--- 23 19 + 27 19 +S
I -
Total of commodity and miscellaneous items----' 7, 101 | 6,451 +650 7,382 6,898 +484
|
1 Largely a deduction from American tourist expenditures.

(WI)
ESTIMATED BALANCE OF INTERNATIONAL PAYMENTS OF THE UNITED STATES :
CALENDAR YEARS 1928 (REVISED) AND 1929–Continued
i 1928 (revised) 1929
Classes of international transaction - -- - - - -- --- - - - - -- - -
Credits] Debits
-
* Credits Debits Balance
MOVEMENT OF PRIVATE LONG-TERM CAPITAL

|
New American investments abroad: -
. Foreign securities publicly offered here (par

value)”----------------------------------------------
. Deduct for “refunding to Americans”---------
. Deduct for securities issued below par---------

Add new “direct investments” abroad by
Americans------------------------------------------
6. Add foreign stocks and bonds bought from for
eigners in small lots --------------------------------
Reductions of previous American investments abroad:
7. Bond-redemption payments received from for
618ſhers-------------------------------------- -
8. Sinking-fund payments received from foreigners

9. Resale to foreigners of direct investinents.------
10. Foreign stocks and bonds resold to foreigners 3--
New foreign investments in the United States:
11. Direct investments.---------------------------- (U --------
-
12. American stocks and bonds sold to foreigners 3-- 1, 503 --------
Reductions of previous foreign investments in the
º
United States: -
13. Redemption and sinking-fund payments to

foreigners------------------------------------------- 70 -70 -------- 77 –77
14. Purchase of American properties from for- : l
eigners-------------------------------------- |---------------- ---------------- 15 — 15

15. American stocks and bonds bought back from . |
foreigners *----------------------------------|-------- 1,015 -1,015 -------- 1,080 —1,080
Total of private, funded-capital items----------- 2,795 3,503 4 –708 2,405 i 2,791 —386
MOVEMENT OF SEHORT-TERM CAPITAL - l
Net change in international banking accounts, as re- | -
vealed by questionnaire--------------------------- ,-------- 226 –226 +13 -------- - +13

PURE CASII ITEMS
Gold--------------------------------- 561 169 || 392 117 292 –175

Changes in ear-marked gold 68 188 –120 128 . 73
United States paper currency-----------------------------------------|------------------------ --------
Total of gold and currency---------------------- l 629 357 272 245 . 365 —120
Grand total, all items--------------------------- 10,525 10, 537 | * –12 10,045 10,054 5 –9
| ! i | i
* Issued outside our balance-of-payment area. Usually American statistics of public offerings include
those of all Territories and possessions; although Hawaii, Porto Rico, and Alaska are parts of our customs
area.
* One of four important items whose amounts are extremely uncertain. It is supposable that most of the
net discrepancy in the entire statement (arising from errors and omissions) results from errors in this group
of items. Accordingly the original estimates of these items were all altered according to a uniform ratio
which would eliminate 60 per cent of the net discrepancy in the entire statement. Before the items were
thus altered, the net discrepancies for the years 1928 and 1929 were respectively –31 and —23.
* Estimated “net export of long-term private capital.”
* Discrepancy, due to not errors and omissions. Total errors and omissions would probably be much
greater, since they tend to offset one another.
(VII)
THE BALANCE OF INTERNATIONAL PAYMENTS OF
THE UNITED STATES IN 1929
COMMODITY MOVEMENT
The largest items in our balance of payments are, of course, the

exports and imports of merchandise as reported by the IDepartment
of Commerce in current trade statistics. Besides the figures as thus
given, there are several minor items, some known in amount and
others requiring estimate, which partake of the nature of commodity
movements; for example, the shipment of silver, sales and purchases
of bunker fuel, unrecorded parcel-post shipments, and the like.
Merchandise Exports and Imports.
The totals of our merchandise exports and imports for the calendar
year 1929 are reported at $5,241,000,000 and $4,400,124,000. The ex
port total includes, of course, reexports of foreign merchandise since
such merchandise was recorded as “general imports” when it entered
the country.
A comparative and analytical review of the year's merchandise
transactions will be found in a pamphlet recently issued by this
bureau and entitled “ Foreign Trade of the United States in the
Calendar Year 1929.” “ The following conclusions are excerpted
therefrom :
Exports of merchandise totaled $5,241,000,000, the largest value for any year
except those from 1916 to 1920; they were two and two-fifths times greater
than the average value for the period 1910–1914, and about one-fifth more than
the average for the poriod 1921–1925. The percentage increase in quantity of
exports closely loaralleled the advance ill their value, since thero was little
change in the average unit value as compared with 1928. IIigher average
unit values of heavy iron and steel, copper, and lubricating oil were counter
balanced by lower prices for cotton, motor trucks and husses, and passenger
automobiles. For the past three successive years the export price index has
fluctuated only slightly. standing about 25 per cont highor than in 1913.
Imports aggregated $4,000,000,000 during 1929-–an increase of $300,000,000
over 1928; this total was only slightly loss than for 1926, the record year since
1920. As compared with the average value for the period 1910-1914, imports
were two and three-fifths times greater and as compared with the average for
1921–1925 the increase was 27% per cent. The total value of imports during
the last few years has been greatly affected by price declines of a number of
commodities. In 1926 the value of rubber imports reached a total of $506,
000,000, whereas in 1929 the value amounted to only $241,000,000, notwithstand
ing the fact that a much larger quantity was imported; this was owing to a
falling off in the average price from 55 to 19 cents per pound. As compared
With 1928, there were declines in the average import prices not only of rubber
but also of a large proportion of other loading commoditios, including sugar,
coffee, cocoa, hides and skins, and tin. In fact, when an adjust mont for price
* “ Monthly. Summary of Foreign Commorce,” I)ocombor, 1020.

lºade
gratls.
Information Bulletin No. 684, by Grace A. Witherow, 54 pages. I)istribution
114049—30—2 (1 )
2
changes is made, there appears to have been a gain of approximately 14 per

cent in quantity of imports over 1928, in contrast with an increase in value of
7% per cent. As compared with 1926, the quantity increase was even larger.
Quarterly Movements of Foreign Trade.
Practically the entire gain in the value of exports in 1929 over the preceding
year was confined to the first four months of the year; during May, October,
November, and December export values fell below those of the same months of
1928. As a result of the influence of large changes in shipments of agricultural
products, exports usually reach a low point in the early summer, rise to a peak
in the fall, and gradually decline throughout the winter and spring months.
In 1929 the daily average exports for January, February, and March did not
fall below the previous December figure, as is usually the case, but were some
what higher, owing to a very marked expansion in the exports of finished
manufactures. While the seasonal expansion during the fall was less pro
nounced than in most recent years, the decline in December was more marked.
Although the value of exports in the fourth quarter was much smaller than in
ºfesponding
O 7.
quarter of 1928 it was slightly larger than in that quarter
Export and Import Records in 1929.

The number and character of the commodities which attain maximum levels
in both export and import trade during any one year is a significant indicator
of the direction of the growth of foreign trade. During 1929 many new high
rocords were established, and the character of the commodities which made
these records indicates a wide diffusion of foreign trade activity.
A special compilation has been made of those articles in foreign trade, the
value of which amounted to more than $1,000,000 during 1929. Of 416 such
export commodities, 130 reached maximum levels as to either quantity or value,
65 establishing new high records in both respects, 24 showing larger quantities
than in any other year but not higher values, and 41 showing higher values
but not higher quantities (the quantities for 28 of these 41 are not available).
United States Share in World Trade.
The share of the United States in both world exports and world imports is
at present substantially larger than in 1913, although the ratios have declined
slightly in recent years. In Volume II of the 1929 Commerce Yearbook, pages
768–771, the foreign-trade statistics of 102 countries are combined, the total
representing at least 95 per cent of world trade. For 1913 the United States
exports were 12.3 per cent of the total for all countries: in 1921–1925 the ratio
was 16.5 per cent, and in 1928, 15.6 per cent. Our percentage of world imports
rose from 8.3 in 1913 to 12.5 in 1921–1925 and was 11.7 in 1928.
Notwithstanding the rapid increase in our export trade, the proportion of
the national output of movable commodities exported is less than at the
beginning of the century and about the same as immediately before the World
War. This results from the fact that the United States has been able to
increase its domestic production very rapidly and has not been compelled to
obtain an increasing proportion of its consumption from foreign countries.
Fluctuations in United States Merchandise Trade.
The “big three * variants in foreign dealings of the United States
are merchandise, capital, and gold. Its trade balance has seen radi
cal fluctuations in recent years comparable with the wide fluctuations
in its net capital export.” In round millions of dollars, our excess
of export rose from 741 in 1914 to 4,016 in 1919, declined to 375 in
1922, rose to 981 in 1924, dropped back to 378 in 1926, rallied again
to 1,038 in 1928, and declined to 841 last year.
The United States has had no annual excess of merchandise im
ports, since 1893. Indeed, it has had relatively few monthly “def
icits" of this kind; most of these have been in the spring, and none
has fallen in the last quarter of the year, at least in the present
century. In recent years our monthly trade balances have usually
shrunk to a very few millions in May, June, and July.
* See section, “Comparative Balances of Payments, 1923–1929.”
3
Last year our merchandise exports increased by 143 millions,

or about 2.2 per cent; our imports increased by 309 millions, or 5.9
per cent; and our excess of exports declined by 196 millions, or 18.9
per cent. The table accounts for these changes by continents and
by principal countries. The very large changes in our trade with
Germany and with Japan are especially noteworthy.
UNITED STATES MERCHANDISE TRADE BY CONTINENTS AND BY PRINCIPAL
Countries IN 1929, CoMPARED witH 1928
l
|
| In thousands of dollars
| - - - Change
Continents and principal 1928 1929 i
i
º ſ e
countries |- -- - - -- -
G
-------
1 | E f ſ G 1 Fºxcess 0
| tion (in
|millions)
renera xceSS 0 enera - -
I
Exports, i.; '..." | Exports
-
imports exports
I
| | i i
CONTINENTS | -
i l
Europe----------------------
North America.--
º
1,321,364
1,248,749 4-1, 126, 165 2,340,703 1,332,667 +1,008,036
060, 701 || +360,663 |1,395,232 982,281 +4.12,951
-118
+52
Asia------------- 654, 516 (1,168,927 | –514,411 || 643,420 1,280, 252 –636,832 –122
South America 480, 814 560,408 ~$3,504 #36.343 "figã,761 -100,418 —12
Oceania----- 180,033 53.450 +125,583 192,022 56.556 +135.4% +9
Africa----------------------- 116,713 || 90,205 +26,508 || 130,538 108.007. +21,931 | –5
Grand total.------------ 5, 128,354 4,091,440 |+1,036,914 5,241,258 4,400, 124 +841, 134 -196
PRINCIPAL COUNTRIES 1 |
l
Europe: |
Belgium----------------- 111,830 || 75,074 36,756 || 114,854 74,045 40, 809 +4
Denmark-- 47, 173 3,938 43,235 #1, #44 '4, #63 46,881 +4
France---- : 240,692 | 158,748 81,944 265,056 || 171, 49] 94, 165 +12
Germany---- 467,260 222, 130 245, 130 410,259 254,674 155, 585 | –90
Netherlands- 142,278 83,604 58,674 128, 202 83,853 44,439 – 14
Sweden.---------- 57,322 46,086 11,236 58,703 52.982 5,721 —5
United Kingdom-------- 847, 326 || 348, 540 408,786 , 847, 080 320,767 518, 213 +20
Soviet Russia in Europe. 72, 504 13,949 58, 555 81, 548 21, 520 60,028 +2
Italy-------------------- 162, 125 101,681 60,444 153,974 117,065 36,000 –24
Spain-------------------- 86,613 35, 018 51, 595 82, 121 36,060 46,061 –5
North America: :
: 014, 713 480, 303 425,410 948, 501 : 504, 277 444, 224 +-19
115,555 | 124,514 –8,859 133,961 117,707 16,254 +25
127,807 202,842 –74, 945 12s. 808 207, 421 –78, 523 –4
Netherland West Indies. 13,622 54,433 –40, 811 24, 167 64,580 –40, 422 ---------
South America: i
Colombia---------------- 58, 596 04, 599 —36,003 48,083 103, 52. — 19

Argentina--- 178. 800 00, 438 70, 461 210, 288 117, F.85 +13
Brazil----- - 100, 104 220, 701 –120, 507 108,779 207. 686 +22
Chile------ - 40.351 , 75, 160 –34, 800 55,776 102,025 —11
Asi Venezuela 37,020 38,005 –085 45, 325 51, 224 –5
...Asia: -
British India------------ 53,694 : 148,032 –05, 238 55, 360 140,332 +1

British Malaya -i 11, 816 , 204,364 – 192, 548 14,641 239, 164 –32
Netherland East Indies--| 34,445 86, 142 –51, 607 45, 551 +15
Philippine Islands------- | 70, 806 115,609 –35, 803 8.5, 502 - –4
China------------------- | 137,661 | 130, 651 –2, 200 124, 354 166,235 –39
Japan------------------- 288, 156 || 384,450 –06, 201 250, 128 431,873 –76
Other: - |
Australia---------------- 141,440 31, 577 109,863 150, 110 31,030 118, 171 +8
British South Africa----- 50.003, 9, 181 40, 912 63,746 0, 656 54,000 #4
Those having a total import or total export of $50,000,000 or more in 1928 or 1929.
2.É.
and 83.
Monthly Summary of Foreign Commerce of the United States, Part II, T)ecember, 1929, pp.
Bunker Coal and Oil Sales to Foreign Wessels.

“Bunker coal and oil laden vessels engaged in foreign trade *
are not included in the statistics of United States merchandise
exports. Statistics are, however, available of our bunker coal sales in
foreign trade since 1907 and of our bunker oil sales in foreign trade
since 1916. From those statistics, in which sales to foreign and to
4
American vessels were bulked, estimates of the foreign share were

made in the 1926 balance of payments for the first time. Since Janu
ary 1, 1927, the Department of Commerce has separately compiled
bunker sales to foreign vessels. During 1929 United States sales of
bunker coal to foreign vessels totaled 3,341,196 tons, valued at $17,097,
000; and our sales of bunker oil to foreign vessels totaled 27,314,797
barrels, valued at $29,200,000.
The Merchant Fleet Corporation reports that fuel expenditures in
foreign ports during 1929 were for fuel oil $926,517 and for coal
$733,678. The vessels for which these expenditures were made
included 22 coal burners and 209 oil burners. Converted to vessel
tonnage, the coal-burning vessels aggregated 122,401 gross tons and
the oil burners 1,210,259 gross tons; nine and a fraction per cent of
the tonnage of the United States Shipping Board fleet was coal
burners and the remainder oil burners.
The actual performances of these vessels during 1929 included
1,084 voyages and the aggregate vessel gross tonnage moved was
6.425,389. Applying the percentage distribution of tonnage of coal
and oil burners to this tonnage movement during the year, it appears
that the coal-burning tonnage was 590,154 gross tons and the oil-burn
ing tonnage 5,835,235 gross tons. Applying these figures to the
expenditures reported by the Merchant Fleet Corporation, it is found
that the expense of the coal-burning movement was approximately
$1.25 per ton, while the expense of the oil-burning movement was less
than 16 cents per ton. This wide variation may be due to the fact
that oil-burning vessels frequently bunker for the round voyage,
while practically every coal burner is compelled to bunker one or more
times abroad. Proceeding in the same manner, it is found that
privately owned vessels made 10,517 round voyages and had a tonnage
movement of 3,936,832 tons of coal burners and 30,516,201 tons of oil
burners. Application, as above, of the prices per ton moved, indicates
that privately owned vessels expended about $4,894,000 for coal and
about $4,845,000 for oil."
Ship Chandler, Ship Repair, and Tonnage Items.
The methods of estimating these items are explained in last year's
survey, which carried under these heads a credit of 45 and a debit of
34 millions. Similar figures for 1929 were supplied by Virgil C.
Miller, of the United States Shipping Board. Mr. Miller concludes
that foreign vessels spent in our ports about $53,973,000 and that
American vessels spent in foreign ports about $36,999,000 for items
other than bunkerage.
Sales and Purchases of Wessels.
Since January 1, 1927, the Bureau of Navigation has collected
statistics on the number, gross tonnage, and value of documented
vessels sold to aliens, built for aliens, and bought from them. It does
not, however, compile data on the many small undocumented yachts
purchased from aliens for unknown sums; these are herein estimated
arbitrarily at $300,000 during 1929.
The Bureau of Navigation reports that during the past calendar
year 79 vessels of 142,807 tons, valued at $3,053,912, were sold to
* These estimatos were supplied by Virgil C. Miller, assistant director of the Bureau of
Research, United States Shipping Board. The 1928 figures were probably about the same.
3)
aliens; that 13 vessels of 1,004 tons, valued at $218,849, were built for
aliens; and that 52 vessels of 51,598 tons, valued at $9,823,978, were
bought from aliens.
As these values are not included in our statistics of foreign trade,
the foregoing transactions involved an invisible export of $3.273,000
and an invisible import of $10,124,000.
Unrecorded Parcel-Post Shipments.
United States postal authorities require export declarations upon
only a part of the parcel-post exports. These documents are re
quired only when the package is sent by a United States business
concern to a foreign business concern and when the value of the pack
age is $25 or more. Only the total value of packages within this very
restricted class is included in official merchandise exports. The rest
has been estimated, in past surveys, on the bases of (1) total weight
of packages exported; (2) average value per pound of such packages,
as ascertained at the New York post office by opening and appraising
the value of a large number of them at random; and (3) average
ratio of gift packages, which involve no foreign-exchange transac
tions and hence would be excluded from the balance of payments.
There are even greater difficulties in estimating the value of un
recorded parcel-post imports. Only dutiable packages are recorded
in the table of our merchandise imports, and in actual practice a por
tion of even the dutiable packages are delivered duty free. There
has been no sampling to estimate their average value per pound, and
there is no good way to guess at the portion of gifts.
In any case, the difference in value between the unrecorded ex
ports and the unrecorded imports is probably not large. It is arbi
trarily assumed that in 1929 the two values balanced at $20,000,000.
Changed Year-End Lag in Invoice Terms.
Our favorable trade balances in November and December, 1928,
were $162,000,000 larger than during the same months in 1927 and
$135,000,000 larger than during the same months of 1929. Faced by
such a wide difference, one can not continue to assume that “the
net sum owed abroad or due from abroad at the end of the year,
on exports and imports of all kinds, equals the net sum so owed
or so due at the beginning of the year.” An estimate must be made
of the difference between the two year-end lags in payments; for a
balance of payments should record only cash claims matured and
actually honored during the year.
Any estimate of the year-end lag created by the invoice terms of
merchandise shipments—if it be a conservative estimate—is better
than none at all. In attempting to reach a not entirely arbitrary
estimate, several of the commodity experts of this bureau were con
sulted. It was found (1) that invoice terms vary widely with the
article, with the country of origin or destination, with the customer,
and within the trade, and (2) that there are too many articles in
United States foreign trade to make feasible any weighted average
of “ time ’’ granted on either exports or imports. It seemed to be
the opinion of these experts as a group, however, that the lag is
briefer on imports than on exports. Much of our imports of coffee,
tobacco, and similar products are purchased months before their ar
rival here, through advances to planters. Even in our exports of
staple foodstuffs, American houses frequently give invoice credits:
6
and some of these commodities are held by Americans in foreign

warehouses pending sale.
Under the circumstances, the compiler arbitrarily assumes that on
December 31 of any recent year (1) all transactions for October and
previous months have been paid for; (2) that one-fourth of the No
vember exports and one-half of the December exports are “in lag”;
and (3) that one-sixth of the November imports and one-third of
the December imports are in lag. For 1929 this method yields a
corrective credit entry of $42,600,000. By adopting these ratios in
the revised balances of payments, it was found that the discrepancies
due to errors and omissions were notably reduced.
The lag just discussed relates primarily to invoice terms, on open
book accounts; there is a great deal of this kind of credit in our huge
business with Canada. It relates also to branch-office shipments,
and to open consignments to agents. Lags in payment in foreign
trade transactions are created, also, by acceptances and other banking
instruments—as measured by the questionnaire to bankers on “Inter
national deposits and short-term loans.” Such a lag would be cre
ated, if, when an American exporter demands spot cash from his for
eign customer, the latter (because interest rates are lower here than in
his country) arranges, through his own bank abroad, for an Ameri
can bank to accept and discount a draft, whose proceeds go to the
American exporter. In some of the border-line cases it is not clear
whether the lag results from invoice credits or from international
bank credit; but the latter should be counted herein under “Inter
national movement of short-term capital.”
The lag figure for 1922, in the revised balances of payments in
last year's bulletin, was carried as a minus of 13—the result of
the mechanical computation explained above. That figure should
be revised to a plus of 100 because of the “thawing ” of frozen
export credits granted before the world crisis of 1920–21. There is
a sound inductive basis for some such revision, on page 20 of the
1922 survey, which will be explained in detail to interested inquirers.
Before this revision was made, the discrepancy due to errors and
omissions in the 1922 statement was larger than in any of the
statements for later years.
There should normally be some correspondence between the esti
mated changed lag in merchandise payments and the changed lag
in bankers’ acceptances in items 3 and 9 of the table entitled “Unite
States exports and imports of short-term capital,” toward the end
of this bulletin. In 1928 both figures were debits of 55 and 54, re
spectively. In 1929, however, the former is a credit of 42 and the
latter a debit of 71. Comparisons of these two figures in future
years may disclose a need for a different method of estimating lag.
Other Merchandise Adjustments.
The surveys for 1924, 1925, and 1926 contained estimates of the
sums paid to foreigners for smuggled liquor, as indicated by the
recorded exports of liquor by border and other countries. A sec
tion of the press stressed these estimates to the exclusion of the more
important results of the surveys, and certain public officers found
ground to object to such publicity. Similarly there are objections to
publishing “official * estimates of the smuggling of diamonds, nar
cotics, and other articles, of understatement of imports to evade ad
7
valorem duties, or of loss by bad debts in foreign trade. Yet this

group of items has an important influence on the balance of pay
ments; its debits are much greater than its credits. The best way to
meet the situation seems to be to bulk all the estimates in the group.
By this method the writer concludes that, for the special purpose of
a balance of payments, a debit entry should be made in the com
modity group of items for 1929 of about $214,000,000. A brief dis
cussion of the separate estimates bulked in that figure follows.
Because of bad debts and unfortunate consignments—as well as
of pilferage and destruction of goods in transit, unless the goods are
fully insured by companies located outside the shipper's country—
some part of our exports and imports do not involve cash. In certain
past years—1920, for example—these various kinds of losses on our
exports were very large. In general they are believed to affect our
exports more than our imports. For one thing the exports of the
United States are always larger than its imports. Relatively, also,
the loss on exports is perhaps somewhat larger, despite the facts that
(1) our exports of staple commodities are largely sold for spot cash
in our produce exchanges; that (2) a large part of our remaining
exports are sold against confirmed letters of credit; and that (3) the
enormous trade between Canada and the United States is probably
subject to no greater risks than the domestic business of either coun
try, as indicated by the uniform premium rates of credit insurance
companies operating on both sides of the frontier. United States
companies and associations selling foreign-credit insurance charge
premiums ranging usually from a minimum of seven-eighths of 1 per
cent of the invoice to a maximum of nearly 4 per cent, according to
the terms of payment, destination of the goods, credit rating of the
purchaser, and other circumstances; and they refuse to underwrite
extreme risks.
Ad valorem duties are levied on only about 16 per cent of our
imports; so the understatement of merchandise imports on this
account is probably less than has been contended in some quarters.
A different sort of invisible import arises from the purely overhead
expenditures abroad by United States corporations in purchasing
raw materials (coffee and tobacco, as examples). This invisible
was “discovered " by Assistant Trade Commissioner John T. Hard
ing. Such expenditures can hardly be allocated to the unit cost
(price) of the imports as entered in the consular invoice. An in
visible export probably arises from similar operations by foreign
agents in this country.
Estimated payments by United States exporters to foreign consular
offices in the United States for consular invoice fees are also included
in this debit entry; in some instances these fees are so high as to
resemble taxes. Consular invoice fees paid by foreigners to the
United States Government are entered (as a credit) under “other
governmental transactions.”
On the other hand, a deduction must be made from the reported
import statistics for “home administration of concerns producing
abroad important United States imports.” This item was suggested
by Grosvenor Jones, chief of the finance and investment division of
the bureau, and was first entered in the 1926 survey. Mr. Jones
pointed out that a portion of our imports are in a special class be
8
cause they were produced by American capital abroad. Sugar from

American plantations in Cuba, newsprint paper from American for
ests and mills in Canada, petroleum from American oil companies
in Mexico, and copper from American mines in Chile illustrate this
class of import. Many items in this class are on the free list; and
there being no incentive to understatement, it is probable that they
are generally valued at the market price. Not all of this market
price goes abroad, however. All the profits on the sales, plus the
administration expenses of the head offices in the United States, plus
reserves, may remain here. In this survey it will be assumed that the
profits on the sales are included in the estimated income from our
foreign investments. The share unaccounted for can be estimated
only arbitrarily, but it is too important to be ignored. The fore
going bulked estimate is net after deducting what seemed to be a
reasonable sum on account of this invisible.
The exact figures included in the bulked estimate of “other
merchandise adjustments,” as well as the necessarily arbitrary methods
in reaching them, will de disclosed, in strict confidence, to an
person constructively interested in the subject. The bulked esti
mates, in revised balances of payments, have not been used to
force a balance in any particular year; although, as explained on
pages 55 and 56 of the 1928 survey, the preliminary bulked estimates
for all years were uniformly reduced by 20 millions, because the
“net discrepancies due to errors and omissions ° for the seven years
showed such a heavy excess of debits.
Correction for Dollar-Exchange Fluctuations.”
A preponderance of United States transactions, whether current
or capital, are in dollars. Most of our merchandise imports, how
ever, are bought in foreign exchange. In a period when dollar
exchange is at an average discount of, say, one-eighth of 1 per cent,
our approximately 4 billions of imports would cost us about 10,000,000
more than in a year when dollar exchange is at an average premium
of 1% per cent. It is believed (1) that in the case of gold-standard
countries, the cost of our imports fluctuates rather closely with
dollar-exchange fluctuations, but (2) that in the case of countries
on a paper or silver standard, invoice prices are likely to be rather
quickly adjusted to sharp fluctuations in exchange.
Throughout the first nine or ten months of 1929 dollar exclange
was at a high premium, and the year's average of every foreign
currency, except the belga, was at a discount. Applying the respec
tive discounts to the value of our imports from each of seven
gold-standard countries from which we derived 43.5 per cent of our
imports, one gets a deduction of $7,689,000. Assuming for the
remaining 56.5 per cent of our imports the average discount of
the currencies of Italy, Belgium, Argentina, Chile, and India, one
finds a further small deduction of $443,000.
The corresponding figure for 1928 was considerably, less than
$1,000,000. The total is considered in the bulked figure for “Other
merchandise adjustments.”
3 The desirability of such a correction was suggest d to the compiler by A. S. Iłaxendale,
"...ondon.
9
FREIGHT PAYMENTS AND RECEIPTS
United States statistics of merchandise exports show the value of

the exported merchandise free on board a vessel at a seaport or
Great Lakes port or set down at the Canadian, Mexican, or Alaskan
border. If United States vessels deliver the exported merchandise
to a foreign country, their freight charges on the merchandise are
an invisible export: if foreign vessels carry it, the freight charges
do not enter the United States balance of payments.
Our statistics of merchandise imports show the value of the im
ported merchandise at the foreign point of shipment, sometimes an
inland point. If foreign vessels bring the imported merchandise to
our ports, we pay foreigners additional sums for the merchandise;
such sums constitute an invisible import. If United States vessels
bring the imported merchandise to our ports, these additional sums
are paid to Americans and hence are not international transfers.
Oversea and Great Lakes Freight.
For all recent fiscal years freight receipts by United States and
foreign vessels engaged in carrying our foreign trade have been
computed in detail by Virgil C. Miller, assistant director of the
Bureau of Research of the United States Shipping Board. A de
scription of the data used by Mr. Miller in these expert computations
of “the Nation's freight bill’ will be supplied upon request. In
1929, calendar-year figures became available for the first time.
The total freight earned during the year by vessels engaged in
carrying United States exports and imports on the oceans and Great
Lakes is seen to be about $803,000,000. Of this immense sum,
$515,000,000 went to foreign vessels.
UNITED STATES FOREIGN-TRADE FREIGHT EARNED BY UNITED STATES AND BY FOREIGN
WEssFLs, CALENDAR YEAR 1929
[In thousands of dollars)
On United States
imports .
-
On United
exportsStates r
Total
Itein ——— - -
Earned by Earned by | Earned by Earned by Earned by Earned by

Almericans foreigners Americans foreigners Americans foreigners
----- - - - - - ! — -- - - - - -- - - - | — — — — — —— — . i - —— —
Ocean freight: - l
Dry cargoes--------------- $83,470 $185,773 , $103, 876 $220, 736 $187, 346 | $406, 509
Tankers------------------- 62, 992 20,998 27,862 79, 300 90, 854 100,298
Total ocean freight.------ 146,462 206, 771 131, 738 300,036 278, 200 506,807
Great Lakes froight----------- 5, 691 | 1, 691 4, 312 6,743 10, 003 8,434
Grand total.------------- | 152, 153 208, 462 | 136,050 306,779 | 288, 203 515, 241
1 All figures subject to revision.

Source: Maritime Records Livision, Bureau of Research, United States Shipping 130ard.
Total freight earned on exports from the United States, by Ameri

con bottons, during 1929, was $136,050,000. This figure is raised
to $142,000,000 for freight earned by American bottoms on cargo
carried between foreign ports. This is an invisible export.
Total freight paid to foreign vessels for carrying United States
imports during 1929 was $208.462,000. This is an invisible import.
114049–30—3
10
Foreign vessels are excluded from our coastwise trade, so this figure
need not be raised.
United States Railway Earnings on Transit Traffic.
An enormous volume of Canadian breadstuffs is annually carried
in transit by United States railroads from the Great Lakes to the
Atlantic coast, as shown in a special table released monthly by the
foodstufts division of this bureau and published annually in Foreign
Commerce and Navigation of the United States. In 1928, this traffic
made up more than 100,000 carloads, or 3,402,000 short tons; in
1929, the volume dropped to 2,791,000 short tons, probably because
of poorer crops in Canada and because of the operations of the
Canadian wheat pool. Most of it moves from Buffalo to New York,
but the rates are virtually uniform from Buffalo to each of the five
principal Atlantic ports. Wheat makes up about three-fourths of
the total, barley about a sixth, and wheat flour about one-eleventh.
Freight charges collected on this traffic by United States railroads
(at the ex-Lake export rates) in 1929 totaled about $8,708,000, or
about $2,000,000 less than in 1928.
Transit earnings by United States railways on Canadian com
modities other than breadstuffs to our Atlantic ports, on ah Canadian
commodities to our Pacific ports, and on the reverse traffic from all
United States seaports to the Canadian border should raise this
invisible export to about $12,000,000.
Payments to Canadian Railways for Transit Freight.
The per contra item, United States payments to Canadian rail
ways, is still more important." The Dominion Dureau of Statistics
regularly records the heavy volume of freight on Canadian railways
“received from foreign connections destined to foreign points,”
which in 1929 amounted to about 16,900,000 tons. Most of the freight
charges on this traffic represent net outlay in the United States bal
ance of payments. The deductions consist of freight charges on
such United States exports to oversea customers as move across the
Canadian frontier to Canadian seaports; in such cases United States
export statistics count the value of the goods at the Canadian
frontier. Examples of such deductions are charges on exports of
(1) foodstuffs and lumber from our Northwest shipped through
Vancouver and (2) grain (about 1,300,000 tons) and packing-house
products from the Chicago region reshipped from Montreal. For
all recent years it seems likely that the deductions totaled about
4,000,000 tons.
Most of the remaining 12,900,000 tons of transit traffic in these
Canadian statistics consist of American commodities moving in bond
from the United States across southern Ontario and back into the
United States. A much smaller volume moves from the Chicago
region, across Canadian territory in bond, and back into the United
States to Portland, Me., whence it is exported. Another volume,
fairly important because it pays a passenger-service rate of $9 per
hundredweight from Vancouver to Chicago, is in the form of raw
silk in)ports from the Far East: in 1929 the charges on this traffic
alone totaled about $1,591,000.
• The method of computing this per contra item was suggested, in general, by Prof.
Kenneth W. Taylor, McMaster University, Toronto.
11
It has been estimated that the average length of haul in the Ontario
traffic is 300 miles, so about 3,870,000,000 ton-miles were involved.
Average earning of all Canadian railways on revenue freight in
1929 was 1.011 cents per ton-mile, but this should be increased to
1.024 cents to include switching charges. At this rate it is believed
that the gross invisible import involved in 1929 was not far from
$39,600,000.
Payments for Foreign Inland Freight on Our Merchandise Imports.
During 1929 we imported $469,027,000 by “land vehicles”—chiefly,
of course, from Canada. As our merchandise-import statistics in
clude only the value of the merchandise at the foreign point of origin.
an invisible import arises. If the freight from the Canadian point
of origin to the border averaged 3 per cent of the value of the goods,
the invisible import is $14,000,000. This should be raised to perhaps
$21,000,000 to cover foreign inland freight upon water-borne imports
from foreign points of origin to foreign seaports, regardless of
whether the goods were brought to our shores in American or in
foreign vessels.
SURVEY OF CERTAIN INVISIBI,E DATA BY COUNTRIES
The following table of certain data, by countries, was compiled

from information forwarded by commercial attachés and consular
officers. It is the principal base of the estimates of total immigrant
remittances and of total foreign long-term investments in the United
States. In addition, it serves to answer numerous inquiries received
by the finance and investment division of the bureau.
RETURNS FROM QUESTION NAIRE TO UNITED STATES GovERN MENT HEPRESENTATIVES
IN ("ERTAIN ("ou NTRIES
[In thousa:lds of doilars]
...Estimated United, | Estilnated Estirnated

States tourist expºndi- ||
tures 1 in 1929
sumsfrºm
|ceived re. long-term
invest;
Selected country or region t i emigrants
in United ments in
l’Inited
I’relimi-
nary
| Final
t
States
1929
2 in end
States at
of 1929
EU. It OPE ANI) i.EWANT
Austria------------------------------------------------ 2, 183 35,000

Azores---------------------------------- - 400 6, 2'ſ)
Belgium-------------------------------- - 200 70,000
Bulgaria-------------------------------- - 7:0 (1)
Czechoslovakia------------------------ - 10, Öſk) 4,000
----------------------------- 1, 285 . 1,030 15, 650
--------------------------------- - 5,000 : l 100 4, U()()
ia------------------------------- . 300 1, 2: () (4)
------------------------------- 379 1, 51() (!)
-------------------------------- 16(), ()()() 1,000 400,000
.2, 122 1(), (100 3 ()(), ()0ſ;
25, UO()
(*)
40,000
- - - - - 32, 600
3. (1)
---- 3 300
1 Includes expenditures of immigrants leaving the I. nited States to visit the honieland. Excludes ex
penditures on steamships going and corning. I.xcludes I.urchases of goods declared by the returned tourist
and recorded as “visible” imports.
2 I)eductions are not made for sums brought into the United States by newly arrived immigrants. Fig
ures include suins taken out of the United States by illumigrants departing permanently.
* Excluding property held by United States Alien Property Custodian.
* Negligible.
12
RETURNS FROM QUESTIONNAIRE TO UNITED STATES Govern MENT REPRESENTATIVEs

IN CERTAIN COUNTRIES-('Ontinued
[In thousands of dollars]
Estimated United Estimated | Estimated

Statestures
tourist expendi- ||ceived
in 1929
sums from
re-T | long-term
invest
Selected country or region I emigrants ments in
in United Tunited
Prelimi- Final States in States at
nary 1929 end of 1929
EUROPE AND LEVANT—continued
Madeira Islands---------------------------------------- 100 100 (4) (4)

Netherlands 1,088 933 250 450,000
Norway------- 1, 802 1, 545 4, 556 9,700
Palestine-------- 2,500 2, 143 2,000 §
Poland---------- 1, 250 1,071 18, 140 4
Portugal.-------- 1, 250 1,071 4,000 (4)
Rumania------ 870 870 4, 520 2,000
Russia-------- 2,000 1,714 10,000 (*)
Spain--------- 1,900 1,629 5,000 20,000
Sweden.------- 6,700 5,743 9,380 40,200
Switzerland--- 12, 137 10,403 1,250 200,000
urkey----- 950 1,000 (4)
United King 47, 355 40,590 7,825 1,560,000
Yugoslavia------ 4,472 (
Total, Europe and Levant (as Selected) ---------- 350,657 301, 142 193, 532 3,309,700
FRONTIER COUNTRIES
Canada------------------------------------------------ 289,000 |------------ 13,000 935,450

Mexico.------------------------------------------------- 46,000 !------------ 8,672 00,
Total 335,000 |------------ 21,672 1,035,450
i
Bahamas----------------------------------------------- 400 500

Barbados- 800 300
Bermuda-- 400 1,000
300 60.000
400 500
(4) 1,000
2,300 63,300
22,500 50,000
(4) 5,000
6,915 50,000
Total, Far East (as Selected)--------------------- 12,720 ------------ 29,415 105,000
Grand total, Selected countries-------------------|------------|------------ 246,919 4, 513,450
* Negligible.
The official authors of the preceding estimates make every reserva

tion as to accuracy. Several of them demurred against indulging in
such “guesswork,” even under instructions. The estimates of tour
ist expenditures are probably more accurate than the other estimates,
for their total tallies reasonably well with the total computed from
(1) average expenditures ascertained from thousands of question
naires and (2) actual statistics as to the number of Americans going
abroad, by classes. In most countries there are official statistics of
arrivals, registrations or passport visas of American visitors; and
our Foreign Service officers, have naturally observed the average
length of stay and the spending habits of American visitors. Esti
mates so based are probably accurate enough for purposes of general
information.
13
Immigrant remittances by countries are harder to estimate. The

most useful indications are (1) estimates of bankers handling most
of the remittances, (2) statistics of postal money orders, (3) sta
tistics of the number of immigrants by countries, and (4) estimates
by foreign compilers of balances of payments. Probably some of the
estimates are too high and others too low; at least some of the errors
would be offset in the grand total.
Least certain of all are estimates by countries of foreign invest
ments in the United States. Some of them are hardly more than
guesses. Listings of American securities on foreign stock exchanges
can be used cautiously for a partial estimate. Besides, a great deal is
known about foreign branch plants, branch offices, and subsidiaries
in the United States. In a few countries something is known of the
American security holdings of insurance companies, banks, and
investment trusts.
Reconciliation of Tourist Estimates.
The section herein entitled “Total American Tourist Expenditures
in Europe,” contains a careful estimate with which the total esti
mates in the table by European and Levantine countries should agree.
They do agree, at least roughly, the discrepancy between the two esti
:
mates being only one-eighth or one-seventh. The compiler believes
that the former estimate is the more accurate, being based on ques
tionnaires to tourists and on immigration and steamship statistics.
Accordingly the estimates by countries—as submitted by American
2.
consuls and commercial attachés and as shown in the “preliminary *
column—have been reduced by one-seventh. The reduced figures
appear in the “final column. For countries having a preliminary
estimate of less than $1,000,000, no reduction was made.
The former estimate is the one used in the American balance of
payments, but fine exactitude can not be claimed for it. Many read
ers may prefer to regard the preliminary and final estimates by coun
tries as range estimates. If range estimates are used, however, the
lower estimates should be somewhat below those in the “final * col
umn, in order to allow for a possible exaggeration in the compiler’s
computations in the section alluded to.
TOURIST TRAFFIC OVER THE CANADIAN BORI) ER
Tourist traffic between the United States and Canada involves a

larger total expenditure than that between any other two countries
in the world. In 1929, for example, United States visitors to Canada
spent about $289,000,000 and Canadians here spent about $91,000,000.
The principal reasons for this great traffic are easily enumerated.
The densest population of both countries is rather close to the fron
tier, which is not so true of the frontier between the United States
and Mexico. Canada has organized and advertised for great tourist
migrations from the south, and the highways and railway accommo
dations across the frontier are extremely good.
The total inerchandise trade between these two nations is now
greater than that between any other two countries in the world and
necessitates many business tours across the frontier. Each nation
maintains numerous branch plants in the other. Investments of
14 ar
United States capital in Canada, indeed, are double those in any other
country, and Canada is credited with almost exactly a billion dollars
of investments in the United States."
The per capita wealth of these two friendly communities, as usually
computed, is the highest in the world; and wealth entails leisure to
travel. Desides, both communities were built up by recent migrations
and are perhaps travelers by heredity. In automobiles per person,
the United States and Canada lead the world.
Visitors from the United States find a bit of the Old World in
French Canada, and there is the lure of the “north woods” for our
sportsmen. Wealthy Canadians go to Florida and California in the
winter; and Americans, not all wealthy, go north in the summer—or,
indeed, in the winter, for the ice carnivals. Canadians come south
to our greater cities, with their theaters and museums, or to attend
our greater universities. Tens of thousands from the United States,
on oversea tours, find it convenient to depart or return via Canadian
ports. Ilast, the important influence of prohibition in the United
States will be doubted by nobody.
The 4,508,809 automobiles “imported into Canada for touring pur
poses’ in 1929, if allowed 15 feet of space each, would make a traffic
jain reaching more than halfway around the Equator.
American Motorists in Canada.
Prior to 1927 the Canadian authorities issued car-reentry permits
to foreign motorists for 1 day, 1 month, or 6 months. Beginning
with 1927, these permits were issued for 1 day, 60 days, or 6 months.
The surprising increase in American motoring over the Canadian
border during the past seven years will be noted in the tables below.
One-day cars and total cars more than quadrupled during that pe
riod. The increase in total cars during 1929 was about 24 per
cent: in 60-day cars, 15.3 per cent. One wonders how long such a
rapid increase can continue.
FoREIGN CARS IMPORTED INTO CANADA For Tour ING PURPOSES, 1922–1926
Year
Admitted | Admitted | º
****
for 1 day for 1 month º: ën Total
6 months
1922 818,374 175,535 2,420 996,329

192 - 966,499 273,444 1,954 1, 241, 897
1924 - a 1,314, S85 361,830 2,344 | a 1,679,059
1925. - a 1,515,035 481, 101 2,948 || < 1,999, 144
1920----------------------------------------------------. 1,521, 181 550,906 4, 168 2,076,255
• Iłevised by Dominion Bureau of Statistics.

Source: Canadian Department of National Revenue.
* I'inancial Post Business Yearbook, 1930.

15
FOREIGN AUTOMOBILES IMPORTED INTO CANADA FOR TOURING PURPOSEs, BY PROV

INCEs, DURING 1929, BY PERMIT PERIODs
Exceeding
For period For period 60 days Total
Province not exceed-| not exceed- but not ermits
ing 24 hours|ing 60 days more than p
6 months
Nova Scotia-------------------------------------------------------- 1,769 36 1,805

Prince Edward Island---------------------------------|------------ 3 2 5
New Brunswick - 158,860 37,262 20 196, 142
203,668 319,942 215 523, 825
2,922, 536 582, 128 836 3,505, 500
33,333 15, 166 15 48,514
15, 780 5,863 10 21,653
23, 215 5,350 2 29, 567
59,196 | 122,531 | 71 181,798
i
3,416, 588 1,091,014 | 1, 207 4, 508,809

Total in 1928------------------------------------------- 2,698, 737 945, 545 1, 173 3,645,455
Total in 1927------------------------------------------- 2,410,087 740, 398 3,315 3, 153,800
Source: Dominion Bureau of Statistics, Ottawa, Canada.
Questionnaire to United States Motorists in Canada.

In 1928 the compiler mailed questionnaires to about 3,500 United
States motorists who had obtained touring permits from the Cana
dian authorities. The results of the 1,227 returns were published in
last year's survey. During 1929 the Canadian customs authorities
handed out to United States motorists about 5,000 post-card question
naires printed by this department. This method of distribution
yielded a smaller ratio of replies; the results of the 709 returns
appear in the table.
RESULTs of 1929 (Post-CARD) QUESTIONAIRE TO UNITED STATES MOTORISTs
IN CANADA
-
Number of returns in Canada ||| '#'
D ays spent
t including
infants . Expand.
Expendi
tures Mile
*:::::,
(and driver)
-day permits: | .
First 97 returns------------------------------------ 97 306 $1,417 10,497

Next 43 returns------------------------------------- 43 138 787 5,077
Total (140 returns)------------------------------- 140 | 444 2, 204 15, 574

Average------------------------------------------ - 1 | 3.17 15. 74 111.2
60-day permits: – |
First 100' returns---------------------------------- 601 307 19, 295 52,246
328 333 6,364 32,775
638 311 15,803 54,805
564 328 13, 273 44,880
701 302 15,953 50, 124
- 538 | 210 11,591 42,706
Total (569 returns)------------------------------- 3,400 1,800 82,279 277, 536

Average------------------------------------------ | 6.08 i 3. 17 144.60 487. 76
| l
1 Wide variations in the first two batches of returns resulted from a grouping of 1-day tourists on 60-day
permits by a statistical assistant.
Fxpenditures by 60-Day Cars.

In 1928, 12 batches of 100 returns each by 60-day permit holders
were compiled. The average expenditure per car of these 1,200
16
returns was $156.35. The batch averages showed amazingly narrow

deviations from that figure. Of the 12 batch averages, 3 were within
$2 of the average for all 1,200 returns, 5 were within $10 of that
average, and 8 were within $15 of it. Again, 5 were above the
average for all 1,200 returns and 7 were below it. The average of
$156.35 was almost certainly within a few dollars of absolute accu
racy for 1928. It was planned to accept that average for 1929 but
to get a larger sampling of 1-day permit holders, only 27 of these
having reported in 1928.
Accordingly the 5,000 post-card questionnaires supplied to the
Dominion authorities last summer were to be handed to 1-day motor
ists upon reentering the United States. Through misunderstanding,
however, most of the post-cards were handed to 60-day motorists,
as the table shows. The 569 returns from the 60-day cars of 1929
averaged only $144.60. Possibly this lower average should be
accepted for 1929; for it seems to be true that each year Americans
of lower income become car owners. The compiler feels, however,
that the customs officials may have followed their instructions better
than the results indicate—that many 1-day permit holders reported
as 60-day permit holders—for it has been observed that many motor
ists did not know which kind of permit they had received. (Returns
by these motorists were thrown out if the uncertainty was clearly
revealed.) Furthermore, the third and fifth batch of returns acted
as if they were trying to establish a mode not far from last year's
average. Finally, this year's sampling is only about half as great
as last year's and is, hence, less reliable. In view of these considera
tions, $150 is adopted as a probable average expenditure of the 60
day cars. The total expenditure of the 1,091,014 cars on 60-day
permits, therefore, was about $163,652,000. -
Expenditures by 1-Day and 6-Month Cars.

The results of the 140 returns by 1-day permit holders quite upset
our previous estimates. The average expenditure of this group of
cars is found to be $15.47; whereas in 1928 the Dominion statistician
and the present compiler, lacking inductive data, concurred in a
probable average of $7. We seem to have visualized the mode cases
(most frequently occurring cases) rather accurately, without allowing
for the tremendous pull of the rare cases of very high expenditure.
On the other hand, many of the 1-day permit holders to whom post
cards had been handed, having spent nothing at all in Canada, may
have felt that their reports were not desired, though quite willing
to cooperate. Iłecause of this influence the average is arbitrarily
reduced to $13, an adjustment with which the Dominion statistician
concurs. The total expenditure by the 3,416,588 cars entering Can
ada during 1929 on 1-day permits is therefore estimated at $44,
416,000. The 1928 estimate is raised $16,192,000, or to a total of
$35,084,000; but no revision of the estimates of 1-day cars for years
prior to 1928 is being made in the present survey.
The 1928 questionnaire yielded only 27 returns from 6-month cars.
Their average expenditure, $560, is adopted for 1929. The total ex
penditure of the 1,207 cars in this group during 1929 is accordingly
estimated at $676,000.
17
Total Expenditures by United States Motorists.

In summary, the gross expenditures of the three groups of auto
mobiles during 1929 are estimated as follows:
60-day cars $163, 652, 000
1-day cars-------------------------- 44, 416,000
6-month Cars -- 676, 000
Total.------ 208,744, 000

A few millions (about five) should be deducted for merchandise
declared, in excess of the $100 exemption, by returning motorists;
but as this deduction applies to rail and steamer tourists, as well as
to motorists, it will be made in the table summarizing all tourist
expenditures.
Canadian Motorists in the United States.
Article 442 of the tariff act of 1922, as amended, authorizes the
admission into the United States of automobiles, motor cycles, etc.,
on 90-day permits or under 6-month bonds. Our customs authori
ties have kept no record of the number of cars imported under these
two arrangements. They issue no 24-hour permits; and, by two
methods, they avoid issuing any great number of 90-day permits to
motorists who plan to spend only a few hours on this side of the
border: (1) They merely “take up * and hold for a few hours the
permit to reenter Canada issued by the Canadian authorities, unless
the motorist plans to return by another frontier station, and (2) they
issue “ yearly permits” to the many Canadians residing so close to
the border that they cross it almost daily.
The Dominion authorities keep a record of the number of cars
“exported for touring purposes” (without regard to periods). Fol
lowing are the totals of such “exports” for the past 8 years:
Automobiles Automobiles
1922------------------------ 100, 810 | 1926–––––––––––––––––––––––– 346,387
1923------------------------ 126,028 1927------------------------ 495,929
1924------------------------ 162,475 1928–––––––––––––––––––––––– 519, 871
1925------------------------ 223,077 1929------------------------ 619, 572
Late in 1928 the Dominion Bureau of Statistics circularized 250
Canadian holders of automobile reentry permits and received 111
returns, which showed an average gross expenditure of $114.77 per
car and an average declaration of merchandise (visible import, from
the Canadian viewpoint) of $4.38. The average number of persons
per car was 3.4 and the average length of stay was 8.8 days.
During 1929 that bureau issued a much larger number of question
naires to motorists who had visited the United States. The 1,530
returns thereto are arranged in the following table, in three groups
conforming with the permit periods of United States cars admitted
to Canada. It is repeated, however, that all automobile reentry per
mits issued by the Dominion run for six months. The average ex
penditures of the three groups in the table can not be compared freely
with the averages for United States cars, as many United States
motorists to Canada obtain 60-day permits but remain only one day.
In 1928, of 1,200 returns by 60-day permit-holders from the United
States 94 (7.8 per cent) stayed one day only; and the average ex
penditure of the 94 cars was $15.33. In 1929, of 569 returns by 60-day
114049—30—4
18
permit-holders from the United States, 55 (9.7 per cent) stayed one
day only; the average expenditure of those 55 cars was $13.67.
RESULTS OF 1929 QUESTIONNAIRE TO CANADIAN MOTORISTS IN THE UNITED STATES
|
- Number Number | Number
- Nº ofº Expendi. Mer. of miles of cars
Number of ret
Number of returns
ºy sengers, tures in chan-
United includ; United dise de- ; motored
in which
reported
§. Ling chil- States clared United miles
ates - iren States motored
1-day tourists: i
First 100 returns. --------------------- 100 393 $753 $26 4,907 93

Second 100 returns- 100 381 | 633 16 4,935 98
Third 100 returns_ _ 100 409 | 709 27 6,927 94
Next 50 returns----------------------- 59 224 343 7 3,374 53
Total (359 returns) ------------------ i

Average----------------------------------- t
359
1 1,407
3.92 2,438
6.79 76
21
20, 203 338
60 l----------
2 to 60 days: !
First 100 returns---------------------- 529 337 || 7,959 164 54,673 94
Second 100 returns- l 492 356 7,381 31 52, 166 92
Third 100 returns_ _ _ _ 680 350 12,618 184 66,019 98
Fourth 100 returns--- ; 651 339 : 10,523 129 81,717 98
Fifth 100 roturns ----- 840 358 17,923 50 76,751 97
Sixth 100 returns--- 876 345 10,682 130 86,076 97
Seventh 100 returns 847 350 10,476 176 88, 528 97
Eighth 100 returns- 877 | 390 16,427 215 77,267 99
Ninth 100 returns--- 1,089 361 12,861 204 || 150,039 95
Tonth 100 returns-- 1, 132 | 344 11,465 244 162,796 98
Flowenth 100 return 968 330 12, 715 241 106, 158 97
Next 66 returns---- 543 223 | 8,467 386 70,060 59
Total (1,166 returns) - 9,524 4,083 | 139,497 2, 154 |1,072,250 1, 121

Average----------------------------------- - 8. 17 3.5 119. (;4 1.85 957 ----------
61 days to 6 months: |
5 returns------------------------------ 454 | 15 10,755 808 46, 200 5
Average------------------------------- 90.8 3 2, 151 161. 60 9, 240 ----------
Total (1,530 returns)---------------- 10,337 | 5,505 152,600 3,038 1, 138,653 i 1,464
Average----------------------------------- 6.76 3. 6 90.80 i 1.99 778 ----------
i I
Source: Dominion Bureau of Statistics.
The table shows that the compiled average expenditure per car
by Canadian motorists in the United States in 1929 was $99.80, or
considerably less than the average of $114.77 obtained from the very
small sampling made in 1928. Either figure is, nevertheless, more
than double the average expenditure per car by all American motor
ists (irrespective of permit periods), which was only $46.29 in 1929.
There are sound reasons for the higher average expenditures by
Canadian cars:
1. The price of automobiles in Canada being higher, the per capita
ownership there is only about half that of the United States. Owners
are wealthier, as a class, and their questionnaire returns show that
there are slightly more passengers per car.
2. The proportion of Canadian tourists who remain only one day
is seen, from the tables, to be very much smaller. This is perhaps
because Canada has no large centers of population right on the
frontier to compare with Detroit and Buffalo; but prohibition, also,
is to be considered.
On the other hand, Canada has nothing resembling our $100
exemption from import duty upon goods brought in by returning
tourists. This circumstance tends to restrict Canadian expenditures
in the United States.
The Dominion statistician, R. H. Coats, suggests that in 1929,
many of the Canadian motorists who were still in the United
19
States, for relatively long periods, did not report. Their returns
would exert a powerful influence in pulling up the average. He
suggests an estimated average of $105 per car, which is adopted
herein. With this average, it is estimated that the passengers of
the 619,572 Canadian cars which entered the United States in 1929
spent here a total of $65,055,000. The merchandise declared by
Canadians upon reentering their country ($1.99 per car), while a
visible import to Canada, is an invisible export to us; few or no
export declarations are filled out in this country for such goods.
It seems necessary to revise the 1928 estimate of expenditures in
the United States by Canadian motorists. The average of $115 per
car in 1928, is arbitrarily reduced to $110; that average was based on
a very small sampling. A lower average in 1929 secms probable, as
the large increase in the 1929 traffic probably included a greater
proportion of comparatively poor people. This revision lowers
the 1928 estimate by $5,199,000, or to $57,186,000. No revision is
being made in estimates for earlier years.
Rail and Steamer Tourist Traffic.
Estimates of the amounts involved in the rail and steamer traffic
between the United States and Canada are now regularly made by
the Dominion Bureau of Statistics. The results are shown below ; the
steamer tourists include those by ocean as well as those by the Great
Lakes. The ingenious method of making the estimates is explained
on page 77 of the Memorandum on International Trade and Balances
of Payments, 1913–1927, published by the League of Nations.
ExPENDITURES OF UNITED STATES Totº RISTS HY RAIL AND STEAMER IN CANADA ANI,
OF CANADIAN TOURISTS 1; Y IRAII, AND STEAMER IN THE UNITED STATES
i|United States; Canadian -

| -_ _ _ _
("anadian --
tourists in United States ſourists in

Year tourists in the United
- Yoar tourists in
* ...i. the IT nited
-
Canada States ('araſia States
1922------------------- $47,416,720 $14, 008, 326 ' 1926-----------------.. - $79,328, 250 $31, 171,500
1023-------- -- 63,368, 550 15, 666,045 1927- - 70,265, (100 26, 265, (100
1924-- - 70,625, 610 18, 268,689 1928- - -- 72, 521, 000 : 24, (;33,000
1925-------------------
- º -
75,089, 430
- - - - -
22, 753, 650 1929 1------------------
- - - - -
80,000,000 | i
26,000,000
1 Preliminary.
Source: T)orninion Bureau of Statistics.
TOURIST TRAFFIC OVER THE MEXICAN BORI) ER
Beginning with 1926 these surveys carried very rough estimates

of the tourist traffic over the Mexican border. In order to ohtair.
closer estimates of this traffic, reports covering the calendar year
1928 were obtained from the six American consular officers near the
Mexican border. Their estimates, necessarily rough, follow.
TOURIST TRAFFIC OVER MEXICAN BOUNDARY
- Mexicans l Mcxicans
| Americans ans Americans \!%lººns
Consular district spent in º Consular district spent in º in
Mexico :
sº.t
Moxico |.States
Agua Prieta--- l
Dollars
200, 250 Dollars Dollars
168,000 | Ensenada-----------------, 25,000,000 Dollars
250,000
700,000 1,000,000 | Laredo-------------------- 3, 602,300 2, 120, 420
579,250 1, 160, 550 -
Piedras Negras 1,060,000 1,411, 220 | Total.--------------. 32,041, soo 6, 210, 190
20
In commenting upon the large estimate for the Ensenada consular

district, Consul E. A. Wakefield reports that official statistics com
piled at the United States immigration office at San Yzidro show
more than 5,350,000 persons as having entered Mexico through that
border port in 1927, of whom possibly 200,000 were returning citizens
of Mexico and visitors from other countries. Most of the others
were American citizens making brief visits, usually for less than one
day. The consul regards his estimated average expenditure of $5
per person to be conservative. On Sundays, holidays, and special
race-track days there are many thousands of American visitors.
That similar attractions account largely for American tourist traf
fic into the other border consular districts is made clear by the
other reports.
No general survey of the border traffic by consular officers was
made for 1929." There was, however, an important increase in the
traffic; the opening of the new automobile highway from Laredo to
Monterrey early in 1929 would make for more than a normal in
crease, according to Commercial Attaché George Wythe. Total
expenditures by American tourists over the border in 1929 are esti
mated to have risen to $38,000,000, and the per contra expenditures
to $7,000,000.
The expenditures of Americans entering Mexico by water are
bulked in the section herein on “West Indian and Insular Traffic.”
The total traffic for 1929 by rail and by steamer, away from the
border districts, was estimated at about $8,000,000 by Commercial
Attaché Wythe. This would raise the estimated Mexican total to
$46,000,000.
AMERICAN TOURIST EXPENDITURES OVERSEAS 9
The following is excerpted from last year's survey:

Tourists are considered herein to be persons traveling abroad, whether for
business or pleasure. The relatively few Government officials and missionaries
traveling abroad are excluded, since their expenditures are included under
“Government expenditures” and “Charitable and missionary contributions.”
Prior to the 1927 survey, American tourist expenditures overseas were
estimated (leductively. Estimated averages of expenditures were obtained
from a number of steamship and tourist agents or other qualified persons, and
these varying estimates were averaged. The results were $1,224 in 1922,
$1,250 in 1923, $1,300 in 1924, $1,200 in 1925, and $1,250 in 1926. It is now
reasonably certain that all these estimates were somewhat too high.
Questionnaire Method of Estimating Gross Oversea Expenditures.
In the fall and early winter of 1927 a questionnaire was sent to 2,500
persons who had applied to the Department of State for passports during
1927. The names of these applicants were selected from the files of the pass
port office in a wholly random Way—a few off the top of each alphabetical file.
The questionnaire called for the total amount spent on the trip (per person).
excluding travel and subsistence on American soil, but including steamship
passages, passport visas, and purchases abroad. It requested the applicant
to state the value of the goods upon which he paid duty upon reentering the
United States. It requested him also to state by which of the three main
classes of steamer passage he traveled. In order to insure that the total
expenditure reported would in every case be for one tourist only, a large
* Vice Consul, R. T. Cowan reported an enormous increase in American, expenditures at

Cuidad Juarez in 1929. American visitors numbered about 1,900,000; their average ex
Lenditure he estimated at $10.
* Excluding those of tourists to the West Indies and the Philippines.
21
number of dubious returns were mailed back for more specific information,
and many others were destroyed.
The number of returns compiled was 807. Of these, 291 were ſrom third
class (including “ tourist" and “student") passengers; 250 were from second
class (including “cabin,” “one,” and “monoclass ") passengers; and 257 were
from first-class passengers, including those traveling cabin de luxe or in suites
of cabins. There were several returns by passengers on cruising vessels, and
these were included purposely. I’assengers departing by one class and returning
by another were entered in the class by which they departed.
The 1928 Questionnaire.
In the fall and winter of 1928 a similar questionnaire was sent to 5,370
passport applicants. Only about 1,800 replies were received, but they covered
2,488 persons, as shown in the table.
About 3,570 persons did not reply to the questionnaire. Of these persons,
several hundred probably never received the questionnaire, because of errors or
changes of address. Others did not reply because they changed their minds and
did not go abroad. Others (lid not reply because they were still abroad when
the questionnaire was mailed ; such tourists, remaining abroad longer, probably
spent more than the average. Still others, perhaps, harbored the idle fear that
there would be some means of checking their customs declarations, but they may
not have spent above the average of their class. The great majority, presum
ably, refused to reply because they were too busy or too indifferent, at the
time, to Cooperate ; their expenditures should be neither albove nor below the
average.
It is believed that those who did reply to the questionnaire had no motive
save that of science and public-spiritedness, and that they reported their
expenditures conscientiously. If some exaggerated their expenditures out of
pride of wealth, others may have understated theirs out of aversion to con
templating their extravagance, or out of pride in being able to travel cheaply
because of their experience on previous tours.
RESULTS OF 1928 QUESTIONNAIRE TO AMERICAN I’AssPORT APPLICANTS
| Deduct
| average.
Num- Total -
Arith- | decla-
- I
-
Accommodation at departure | º: metical º!

ber of Mode 4 rººn invisible
reports jieji average” duty |miſſi 5
- t | per
- tourist
---- -- - - - - - - —--- - - -
Third-class---------------- ------ 150 $82,707 $516.92 $492.86 $400-$499 $5.37 $511. 55

Tourist and student- 609 429,730 705. 63 697. 22 ſº-ſº 9. § 696. 08
Second-class--------- - - 285 279, 983 982. 40 888. 34 700–790 15.44 966.96
Cabin and Inonoclass---- - - - 588 688, 610 1, 171. 11 1,095. 24 1,000-1,099 27. 85 1, 143.26
First-class, cabin do luxe, and i | | |
cruises-------------------------- 846 1,679,288 1,984.97 1,789. 13 || 1,500–1,500 I 108. 17 1,876.80
I
Total.----------------------- 2, 488 3, 100, 318 7 1,270. 22 ---------- ------------- 47.82 1, 222 40
- i
1 Including passage payments to vessels, whether Anierican or foreign.

2 The arithin etical average is obtained by dividing the total expenditure by the number of tourists
reporting.
3 The median is the middle case, being exceeded in size by each of just half of the total number of cases.
The adjusted in edian assurizes that, if the Inedian is somewhere in the $400–$499 group and if there are 25
cases in that group, they are exactly $4 apart.
* The mode is the most frequently recurring case. It is a relatively ur:reliable average, although it will
not be far from the others, if the sampling is ample.
5 Payments by Americans to American stealmships are elsewhere deducted, in the item “Ocean-borne
passenger traſtic.”
* There are 92 cases in this group; the next largest is the $2,000–$2,099 group, with 7S cases. The interven
ing groups are aflong the largest.
* A weighted average would be more significant.
Averages Adopted in 1928.

So sparse a sampling would be of little value, if there were not reasons to
believe that the expenditures of travelers by a given class of steamslail) passage
constitute a “statistical type,” and if the results did not confirm the belief.
It is scientifically certain that a sampling 50 times as great would yield results
very similar to those already Olotained.
22
In each of the five groups of spenders the arithmetical average was higher
than either the median or the mode. The reason for this, as regards the first
class group, is clear. That group includes a large number of well-to-do per
sons and a sprinkling of extremely rich persons; the 21 highest spenders re
ported $129,261, while the 21 lowest reported only about $13,500. Probably no
true statistical type in nature would show such a wide deviation. The second
class group includes many lavish spenders who would have gone first class if
they could have got accommodations during the seasonal rush. All classes
included, besides those whose vacations had strict time limits, a few Who re
mained for many months. Under circumstances like these a perfect statistical
curve—in which mode, mean, and median coincide—does not exist even in
theory. The arithmetical averages are adopted outright, therefore, in all
five cases.
Averages Adopted in 1929.

The arithmetical averages of gross expenditures in 1928 were
larger than in 1927 in all three of the classes. The increase in first,
second, and third classes were, respectively, $118, $146, and $3 (bulk
ing tourist and student classes with third class and bulking cabin and
monoclass with second class). The percentage increases were, re
spectively, 6.3, 15.2, and 0.45 per cent. Much of the gross increase
was in goods declared by returning tourists, the increased declara
tions having been, respectively, about $42, $12, and $2.
There were probably further increases in average gross expendi
tures and in average declarations during 1929; for the first eight
or nine months, in which the tourist season falls, was the culmination
of long-continued prosperity in the United States. As no oversea
questionnaire was sent out in 1929, the higher averages of gross ex
penditures are estimated as follows: Third class, $520; tourist and
student classes, $720; second class, $1,000; cabin and monoclass,
$1,200; and ſirst class, $2,060. Customs declarations during 1929
are estimated, respectively, as $7, $12, $20, $40, and $130.
Number of Citizens to Whom Averages Apply.
Of the 433,734 United States citizens departed from seaports in the
calendar year, 125.532 went on nonpassport tours to the West Indies
and Middle America. About 10,000 citizens visiting in Canada are
also included under the existing classification of “Americans de
parted from seaports,” and the expenditures of these tourists are
fully accounted for under “Tourist Traffic Over the Canadian Bor
der.” Accordingly 298,202 took the more expensive tours covered
by the questionnaire to passport applicants. Of these, a few were
officials of the Government or missionaries, elsewhere accounted for;
so the round figure 297,000 is adopted as the net number to whom
the questionnaire averages apply.
According to estimates based on Bureau of Immigration statistics,
the distribution of these 297,000 tourists, by cabin classes, was as
follows:
Passengers
Third Cl:lss ---- ----- 64,597
Tourist and student classes 56, 549
Sucolid class------- 45,085
Cabin class and monoclass 62,014
First class, cabin de luxe, etc.--------------------------- 68, 755
Total - 207,000
At the average rates of expenditure by cabin class, it is found that

these persons spent $335,443,000 (gross). They declared for duty,
23
as “visible * imports, about $13,451,000, and the non-Canadian share

of goods under the $100 exemption appearing in our statistics of
merchandise imports was $3,170,000. The invisible import by these
297,000 tourists, therefore, was about $318,822,000.
UNITED STATES CITIZENS LEAVING FOR FOREIGN COUNTRIES DURING 1913 TO 1929
1)eparted via— Departed via—
Calendar year Total Land .. Calendar year . Total -- TL o

1 ºn all ( - an
| Seaports pº | | Seaports ports 1
|
- 300,825 27,159 83,667 . 278, 331 12, 173

294, 961 : 247,321 47,640 250, 126 || 10, 313
107, 407 87,557 19,850 292,072 9, 576
123,848 i 90,456 33,392 344, 185 11,970
170,459 125, 570 : 44, 889 356, 555 11, 184
334,912 301,356 33, 556 " 392, 149 13,840
146, tº 118,332 28, 537 43. 111 || 14,861
253,227 227, 195 26,032 . 433, 73} --------
280,080 201, 120 | 18, 960 |
1 Includes only persons leaving ſor a stay of a year or more in Canada or Mexico.
Source: I)epartment of Labor.
The Heichen Deductions.

A deduction from our estimate of gross tourist expenditures over
seas should be made to cover reduced rates given to tourists in con
ducted parties, as pointed out by Dr. Arthur Heichen in the Bank
Archiv (Berlin) for July 15, 1928. He mentions that tourists in
groups are usually regarded in Europe as "purchasing associations,”
and as such are entitled to reduced rates from hotels, vessels, and even
railroads. IIe states that hotels at Cologne, for example, grant a
one-third reduction in rates to party travelers.
The aggregate of such reductions, the compiler believes, is prob
ably smaller than might ſirst appear. If the average reduction on all
expenditures in Europe were one-fifth (which seems high), and if
one-fourth of our tourists in Europe travel in parties, the average
reduction would be 5 per cent; in 1927, then, the estimate of Ameri
can tourist expenditures in Rurope ($349.384,000) should be reduced
by about $17,470,000.
That this deduction is too large is suggested by the fact that ſirst
class and cabin-de-luxe passengers rarely travel in groups; their aver
age expenditure is roughly double that of the other tourists. Fur
thermore. the deduction from payments to foreign passenger vessels
would not be large; for the only concession made to parties by steam
ship companies, in addition to the usual commission to agents, is free
passage for the party conductors. . In view of these considerations,
the IIeichen deduction for reduced rates to parties is roughly esti.
mated at $12,000,000 for all overseas countries.
Gross tourist expenditures, as computed, include payments for
steamship passage—a percentage of which is retained in this country
as commissions by agents of steamship companies. Information as to
the commissions received by steamship agents was obtained from the
Merchant Fleet Corporation and from the Trans-Atlantic Passenger
Conferences. Commissions differ considerably with the class of
steamship passage but are uniform for all lines: they are fixed
amounts in dollars for third class and for tourist third, while for the
24
more expensive passages they are percentages of the sums charged.

In 1928 these commissions totaled about $6,848,000, assuming that
although offices of steamship companies sell many berths directly to
the tourist and hence deduct no commission, the overhead ratios of
these offices roughly equal the rate of commission to agents. The
figure includes, of course, an allowance for alien-American tourists.
The deduction for 1928, under the foregoing two heads, will thus
be $19,000,000. That estimate is repeated for 1929.
Sailors on Shore Leave.
In 1927, for example, about 17,271 foreign vessels entered American
seaports. The expenditures of their personnel while in American
ports are certainly large, but nothing is known of the average. In
the absence of information, the total is set at $7,000,000; and the
per contra (expenditures of American crews in foreign ports) is set
at the same figure. Expenditures abroad by the personnel of Ameri
can naval vessels are included in the foreign pay rolls of the Navy
Department, under “Other Government expenditures.”
WEST INDIAN AND INSULAR TRAFFIC
From the 433,734 United States citizens departed from seaports in

1929, it is important to subtract the large number going to the West
Indies, mostly on winter cruises. The average expenditure of such
tourists is much smaller than that of our other oversea tourists. In
1929 the number of Americans taking these cheaper trips was 125,532,
according to the complex computations explained in the 1928 survey.
The increase of 3,046 over the previous year is surprising in view
of the supposed effects of the stock-market crash. The heaviest of
this traffic occurs during the first three months of the year, and those
effects would not be felt greatly until then. The 1929–30 tourist
season in Cuba ended with estimated receipts of not more than half
those of the previous season, according to Commercial Attaché
Frederick Todd.
The weighted average expenditures of these tourists, including
passage, was estimated at $700 in 1928, on the basis of inquiries
addressed to steamship officials and tourist agencies. The same aver
age is assumed for 1929. It indicates a probable total for this traffic
of about $87,872,000. The deduction for goods declared by returning
tourists appears in the summary table.
Insular Tourist Traffic.
Included among the 433,734 citizens departed from seaports and
destined to foreign countries in the calendar year 1928—as compiled
by the Department of Labor—are around 8,000 citizens who sailed
from Hawaii, Porto Rico, and Alaska. The Department of Labor
compiles separately statistics of passenger traffic between (1) conti
nental United States, Hawaii, Porto Rico, and Alaska, and (2) be
tween continental United States, Philippines, Virgin Islands, Guam,
Samoa, and Canal Zone. This delimitation of area corresponds with
that of the Department of Commerce in compiling statistics of
foreign trade, visible and invisible. -
During the fiscal year 1928–29 United States citizens arriving in

the Philippines from residences within our balance-of-payments area
numbered 2,695, according to the annual report of the Commissioner
General of Immigration, page 177. The same table shows 20,490
25
residents of the Philippine Islands departing to our customs areas.

We have, thus, a notable credit balance in our tourist traffic with
the Philippines. If the average expenditure is $500," the credit is
$10,245,000 and the debit $1,348,000. These estimates are assumed
to apply also to the calendar year.
The traffic between Porto Rico and the Virgin Islands and between
Hawaii and Guam and Samoa is extremely small, involves a smaller
average expenditure, and is largely offsetting; so it is ignored.
Department of State Passport Statistics.
Highly informative statistics on our oversea tourists were recently
released by the passport division of the Department of State. Pass
port applications filed during the calendar year 1929 numbered only
about 196,900; although the Department of Labor reported 433,734
“citizens, departed from seaports.” The discrepancy is easily ex
plained, however. Several citizens may travel on one passport, a
passport may be used for several trips during the two years for which
it is valid; and no passport is necessary for Canada, Cuba, Bahamas,
Bermuda, and several other near-by areas.
No less than 44 per cent of the passport applications were filed by
naturalized Americans, and 35 per cent of the applicants stated that
“family affairs" were the “object of travel.” . Among other objects
of travel, “commercial business” accounted for 8 per cent of the
applications, and education 7 per cent.
“A few people do all the traveling.” Of the total applicants, 37
per cent had received passports in earlier years. About 30 per cent
of the total applicants reside in New York City. More than 70 per
cent of the applicants reside in New York, Pennsylvania, New Jersey,
and Massachusetts. About 88 per cent were destined to western or
eastern Europe.
Americans Residing Abroad.
Figures from 330 American consular offices, reported at various times during
the past two years, indicate that there are about 392,668 Americans residing
abroad, according to the Department of State. This total includes only those
“whose residence abroad has a permanent or semipermanent character and
therefore excludes tourists and all others whose sojourn abroad is considered
to be only transitory.” Exact figures were not obtainable, but the Department
of State regards the above total “as a fairly accurate world census of Ameri
cans living abroad.” More exact data would be available at times from
foreign censuses of populations.
The statement below breaks down this total into grand divisions and into
a few of the countries having the largest number of American residents. It
does not include the large numbers of Americans in the Philippines, Canal Zone,
and other possessions—which, being outside our balance-of-payments area, are
“foreign " countries from the present viewpoint.
Canada and Newfoundland-----------------------------------------...------ 234, 147
Europe (France, 25,860 ; United Kingdom, 11.717 ; Italy. 10,000 ) — -- - - - - - - - - - 77, 06:
Asia (China, 12,233; India, 3,723; Japanese Empire, 3,163)
West Indies and Bermuda (Cuba, 9,234) 19, 579
Mexico and Central America (Mexico, 14,607) – 19, 614
South America (Argentina, 3,619 : Vonezuela, 2 12, 136
Africa (Union of South Africa, 1,125) -------- 3, 673
Australasia and Oceania
* Probably most of these travelors are on business trips, who earn at their destinations
much of what they spend. This estimated low average expenditure is assumed to exclude
such earnings.
114049—30—5
26
The Bureau of Immigration regularly compiles statistics on the number of

American citizens “permanently departed.” During the 10-year period ended
January 30, 1927, the total thus departed was 454,012, of whom 397.358 were
native-born Americans. These statistics are based on informal declarations of
intention made at the time the citizen sails or crosses the frontier and hence
are not very accurate. Most of the native-born citizens went to Canada.
There is no sound basis for an estimate of the amount of income earned in
the United States and spent abroad by such persons. Most of them are gain
fully employed abroad and may even send portions of their foreign income back
to the United States. In the case of construction engineers, the income thus
sent back is so large as to be estimated under “Yield of American investments
abroad.” Others, employed by the United States Government or by American
missionary, charitable, and scientific organizations, spend American funds
separately computed herein.
The arbitrary net estimate for 1929 is $33,000,000. This estimate
seeks to approximate total expenditures, made mainly in Europe, by
three classes of Americans: (1) Wealthy persons living in luxury or
retirement, principally in France, Fngland, and Italy; (2) American
heiresses married to foreigners; and (3) students.
Classification of Aliens Admitted.”
In 1929 aliens legally admitted to the United States numbered
473,727. (See table of numbers of aliens admitted by classes under
the immigration act of 1924.) These persons figure as four entirely
unlike classes. The first three classes create credits, and the fourth
class creates debits in our balance of payments:
1. Immigrants coming here to settle and bringing at least the mini
mum funds required by law, as discussed under “Immigrant re
mittances.”
2. Foreign government officials, employees, and their families,
whose expenditures in this country are included under “Other Gov
ernment transactions.”
3. Foreigners touring the United States.
4. Aliens returning to the United States, usually after visiting the
“old country.” They spent abroad funds obtained in the United
States and are herein styled “Alien-American” tourists. It is deemed
convenient to classify such expenditures under the present heading
rather than under “Immigrant remittances.”
ALIENS ADMITTED INTO TIIE UNITED STATES DURING RECENT CALENDAR YEARS. BY
('LASSES, UNDER THE IMM IGRATION ACT OF 1924
Class 1926 1927 1928 1929

-
|
- I - - -
All classes, total------------------------------------------ | 540, 502,

---
520, 805 , 487, 682
Fi-E
| 473,727
Nonimmigrants, total.------------------------------------ 99.101 103,705

1. Government officials, their farmilies, attendants, servants,
and employees-------------------------------------------- 5,581 6,026 6, 274 6, 453
2 - . V |
'or busir 22,420 11,081) -
For pleasur §:; #:#} 04,562 67,203

. In continuous gh the 28, 130 27, 713 26,791 28, 453
;. To carry on trade under existing treaty (mostly ('hinese) l I 1,278 1, 567 1.596
* In compiling these sections, valuable advice and extensiye assistance were obtained
ſrom J. J. Kunna, chief of the statistical division, Bureau of Immigration.
i
27
ALIENs ADMITTED INTo TIIE UNITED STATES DURING RECENT CALENDAR YEARs, BY
('LASSES, UNDER THE IMMIGRATION ACT OF 1924–('ontinued
Cl:ISS 1926 1927 1928 1920
Nonquota immigrants, total.----------------- ------------ 284, 400 270, 202 210. 540 223,577
5. Wives, husbands, and children of United States citizens 1---' 14, 127 2 4) 28, 601
6. Returning residents-- - - - ------------------. - - - - - 92, 206 96, 737 99. 139
7. Natives of nonquota countries ----------- . . - 169,411 142,649 108,883
8. Wives and children of natives of nonquot:1 co 1, 150 95.3 603
9. Ministers of religious denominations and their wives and | |
children ------------------- 1, 423 1,545 1,091 1,051
10. Professors of colleges, academies, s -
and their wives and children - - - -------. . . . 211 19.4 . 186 209
11. Students ------------------------------------------------ 1. 823 1, 856 1, 888 1, 871,
12. Spanish subjects admitted to Porto Rico. . . . . . . -- - - - - - - ---' 9 3's 46 26
13. Veterans of the World War and their wives and children.-- 3,959 2,601 --------------------
14. American Indians born in Canada.-- -. - - - - - - - - - - - - ------ - - - - - -- -- -- ----------- 19 4
15. Wollien who had hotºn citizens of the United States--------. 81 93
16. Quota inninigrants (charged to quota”, total - - - - - - - - - - - - - - - - 101,791 isºsſ 117,943 146,445
1 Wives, and unmarried minors born in quota countries.

2 Aliens born in Canada, Newfoundland, Mexico, Cuba, I)ominican Republic, Haiti, Canal Zone, or
any independent country of Central or South America. To avoid formalities, a few students, business men,
and other tourists from these countries enter as, nonluota immigrants.
Source: Bureau of Immigration, IDepartinent of Labor.
Alien-American Tourist Expenditures Abroad.

Class 6 in the table shows that 102,627 aliens returned here in 1929
to resume residence after a visit abroad. There is no need to deduct
the approximately 2,600 Canadians and Mexicans included in that
figure. The expenditures of these persons are separately estimated,
it is true: but a large and unknown number of persons classified as
“natives of nonquota countries " (or otherwise) are really “return
ing residents.”
A fairly good check of the number of returning residents is the
106,370 reentry permits issued by the Department of Labor during
1929. The discrepancy arises chiefly from the facts that reentry per
mits are sometimes issued to persons in other than class 6; that a
resident may obtain a reentry permit and then not go abroad after all.
or reenter in the year after it is issued : and that the alien may re
enter on a foreign passport. A reentry permit costs $3, while a
foreign passport with an American visa would usually cost several
times as much.
The average expenditure of these alien-American tourists is cer
tainly less than that of our citizen tourists. Many of them live with
relatives abroad as guests. Most of them came here as laborers and
have not yet reached the higher levels of prosperity. Indeed, it
was observed in scrutinizing the returns to the questionnaire to
citizen tourists, that an unusual proportion of the naturalized citizens
traveled by third class. The average expenditure of these 102,627
alien-American tourists is estimated at $880; or, roughly, only two
thirds of the citizen-tourist figure. Their total expenditures abroad
for 1929 would thus be estimated at about $90,312,000.
About 7,000 of these returning residents had visited the West
Indies and had probably spent, on the average, about half as much
as the others, so the estimated total is reduced to $87,000,000, and
the 1928 estimate is reduced to $85,000,000.
28
Foreign Tourists in the United States from Overseas.

Foreign tourists in the United States are shown in the table under
classes 1 to 4 and class 11. Class 1, however, is thrown out, since the
expenditures of foreign government officials in this country are
counted under “Representation expenses.” Class 3 must be included,
but at a different average rate of expenditure per tourist; it is esti
mated that these transit tourists spent in the United States only $100
each, or $2,845,000.
Even classes 2, 4, and 11 can not be accepted in bulk as bona fide
foreign tourists. Of the 70,675 persons in these groups, about 9 per
cent (during the fiscal year, at least), or about 6,300 were Canadians
and Mexicans, whose expenditures are included in the figures for
tourist traffic over our borders. Of the remaining persons, it is esti
mated that 3,000 earned here the income they spent here. After
these two deductions, the net number of foreign tourists in classes
2, 4, and 11 is 61,375. Their average expenditure in the United
States is assumed to be $1,000—somewhat more, counting steamer
passage, than the average expenditure of American tourists overseas,
because of higher living costs here. Including class 3, therefore, the
total expenditure in the United States during 1928 by foreign tourists
from overseas is estimated at $64,220,000.
Foreign income spent in the United States by foreigners perma
nently residing in the United States is believed to be negligible.
SUMMARY OF ESTIMATED TOURIST ExPENDITURES, LAST THREE CALENDAR YEARs
|In thousands of dollars)
|
- -
Class of tourist 1927- 1928 re- |

Vised 1929
FOREIGN SERVICES TO AMERICAN to URISTS |

Canada:
Motorists------------------------------------------------------------- 134, 525 | 183, 576 | 208,744
Rail-and-steamer tourists - 70,265 72, 521 80,000
Mexican border 32 041 32. 041 38,000
Citizen tourists overSeas: |
West Indies and Middle America------------------------------------- 69. 310 85,740 | 87,872
Europe and rest of world. - - ------- 300, 014 || 336. 115 i
335, 443
Citizens permanently residing abroad--------------------------- 30,000 32,000 : >
Alien-American tourists (immigrants visiting fatherland) ------- 85,000 85,000 87,000

Citizens visiting insular possessions----------------------------- 1,300 1, 326 1, 348
American sailors on shore leave abroad--- 7,000 7,000 7,000
Gross total.------------------------- 729, 455 | 835, 319 878, 407
Deduct merchandise declared------------ 16,988 || 17,990 20,850
Deduct commissions of steamship agencies, etc.--------------------------- . 16,600 19.
9. 000 19,000
Total deductions--------------------------------------------------- 33,588 36,990 39,850
Net total ---------------------------------------------------------- 695,867 798,329 838,557
AMERICAN SERVICES TO FOREIGN VISITORS l
Canada: :
Motorists------------------------------------------------------------- 57,000 57, 186 65,055
Rail-and-steamer visitors - 26,265 24,633 26,000
Mexican border-------------- 6, 210 6,210, 7,000
Foreign visitors from overseas-- 57, 614 58,696 64, 220
Visitors from insular possessions 9,400 9,427 10, 245
Foreign sailors on shore leave here 7.000 7,000 7,000
163, 152 179,520

29
Total American Tourist Expenditures in Europe.

It is estimated that the principal destinations of United States
citizens departed from seaports during 1929 were about as follows:
Number of tourists
Europe and Levant---------------------------------- 282, 702
West Indies and Central America-------------------- 125, 532
Far East------------------------------------------- 12,000
Canada--------------------------------------------- ** 10, 000
South America-------------------------------------- 3, 500
Africa---------------------------------------------- Negligible.
Total------------ 433, 734
The estimate of 282,702 citizen tourists to Europe is accepted with

out any refinement for the negligible percentage of United States
Government officials and persons who subsequently visited places out
side Europe and the countries of the Mediterranean Basin. That
number is 95.18 per cent of the round figure, 297,000, adopted for
“overseas tourist, Europe, and rest of the world,” whose gross ex
penditures are estimated at $335,443,000; so the European share was
probably about $319,234,000.
Of the 102,627 “alien-American * tourists (immigrants visiting the
homeland), about 84.04 per cent visited Europe and the Levant.
This ratio is derived from fiscal-year figures, however. At $880
each, these 86.248 persons spent about $75,898,000.
Of the $33,000,000 estimated to have been spent during 1929 by
United States citizens (mostly wealthy) residing abroad perma
nently, perhaps $28,000,000 was spent in Europe. This pure guess
work corresponds to 5,600 persons—men, women, and children—
spending $5,000 each.
Omitting expenditures by sailors on shore leave, Europe's share
in America's tourist expenditures (gross) during 1929 is estimated
at $423,132,000.
Average steamship passages to or from Europe on the five cabin
classes were, respectively, about $94, $113, $143, $160, and $260. At
these rates the deduction for steamship passages inbound and out
bound is about $88,931,000 for citizen tourists. Passage payments
by the 86.248 alien-American tourists visiting Europe in 1929 were
probably not far from $21,907,000, assuming that of 10 of these
passengers, 6 went by third class, 2 by second class, 1 by cabin class,
and 1 by first class. Expenditures “on European soil” in 1929 were
probably about $312,294,000. Some of these expenditures were for
goods declared by returning tourists, but such declarations are not
very large. They reduce our invisible import, through American tour
ist expenditures “on European soil" in 1929, to about $302,000,000.
Most of the passage payments went to European vessels, however.
During the fiscal year, 91.28 per cent of all passengers leaving the
United States for Europe went on European vessels.” In addition,
European vessels carried large numbers of American tourists to the
West Indies and other parts of the world.
12 º this small part of the total departures to Canada by water is included in Bureau
§ Immigration figures of departures from seaports, according to J. J. Kunna, of that
ureau.
* U. S. Shipping Board, Report B. R. No. 157, p. 5.
30
OCEAN-BORNE PASSENGER TRAFFIC
The total collected yearly by foreign and American vessels as

passage payments by travelers to and from the United States is prob
ably above $250,000,000. Part of this amount was paid by foreigners
to foreign vessels and part was paid by Americans to American ves
sels: such sums do not properly enter the United States balance of
payments. Moreover, the estimates of tourist expenditures include
passage payments, whether to American or to foreign vessels. Large
deductions are therefore necessary.
On the other hand, American vessels collect large sums from for
eign passengers; these are invisible exports and must be somehow
estimated. The complex method of providing for both the entry
and the deduction—by “substitution ”—is explained in last year’s
survey. Excluding the noncontiguous intercoastal, and Great Lakes
traflic, the number of passengers carried (inbound and outbound) by
vessels of all ſlags, during the fiscal year 1929 was 1,861,347, or 6.1
per cent larger than in the previous fiscal year. This suggests that
the 1929 figure should be about $94,000,000, a credit.
On January 1, 1930, the I3ureau of Immigration began to collect
statistics of arrivals and departures of citizens and aliens, by flags
of carriers, by ocean lanes and by cabin classes. Those statistics will
obviate the uncertain, if ingenious, method of “substitution ” in com
puting this important item.
PRIVATE LONG-TERM AMERICAN INVESTMENTS ABROAD
A total of our private investments abroad, estimated by competent

persons, is of itself interesting and valuable information; but it
figures in a balance-of-payments survey only as a basis for estimating
the total annual yield upon foreign investments. Fortunately a
billion-dollar error in the estimated total of principal—and such a
margin of error must be admitted—would create an error of only
about $60,000,000 in the annual yield.
Estimates for the End of 1929.
About a year ago the finance and investment division began a
world-wide census of American “direct investments' abroad. one of
the blind spots in this field. Figures have already been obtained
from over 2,000 American corporations as to their foreign branch
plants. mineral resources, plantations, etc.; and the whole investiga
tion will be completed in time for next year's survey. There will be
available also, in handbook form, the division's annual schedules of
foreign securities publicly offered in the United States from 1914 to
1929, inclusive, as finally revised. Besides, more accurate compara
tive balances of payments from 1921 to date will then be available.
Next year's bulletin will therefore contain more reliable figures on
American investments abroad than have heretofore been obtainable.
In the interim it will be necessary to use the cumulative estimates
brought forward from year to year in these bulletins. Only range
estimates will be given, since this method of presentation will empha
size the margins of errors. The present compiler estimates, from the
data at hand, that on January 1, 1930, the total of private American
investments abroad (excluding war debts to the United States Treas
31
ury and excluding the short-term loans to foreigners shown in the

section, International Movement of Short-Term Capital) lies between
the range estimates below:
- Millions of dollars
Latin America --------------------------------------------- 5,051 to 5,807
, Europe ---------------------------------------------------- 3,970 to 4, 564
Canada and Newfoundland–––––––––––––––––––––––––––––––––– 3, 155 to 3,627
Asia, Australia, and rest of the world ----------------------- 1, 190 to 1,368
Total------------------------------------------------ 13, 366 to 15, 366
The foregoing figures are assumed to consist of nominal capital
in the case of securities and of original outlay or of present capital
ized earning power in the case of investments in physical properties.
They exclude investments in such of the United States Territories |
and possessions as are in our balance-of-payments area.
Certain economists whose opinions merit respect incline still to the
higher range of estimates.” It is known, however, that not all these
economists give due weight to the “backwash,” or “attrition,” to
which our acquisitions of foreign securities during any past year
have been subjected throughout every subsequent year. Around
$8,000,000,000 of our foreign investments are in bonds: bonds mature,
or are “called ” before maturity, and a volume of them is quietly |
retired every month by sinking-fund operations. At the same time -
foreigners buy back from us from time to time small or large blocks
of our foreign securities.
Total Yield of Our Foreign Investments Often Exaggerated.
It is believed that most private estimates of the yield of our for
eign investments have been too high. Hearing a great deal about the
high dividends of foreign bonds, one is likely to suppose that their
typical interest rate is 7 or 7% per cent. Indeed, 7 per cent is, in |
one sense, the “typical * interest rate on foreign securities publicly

offered here, for in several recent years Americans have underwritten
more 7's than securities of any other rate.
On the other hand, during the past six years, Americans have
underwritten nearly 2 billions of foreign bonds paying 5 per cent or
less, including about a half billion of 4’s (mostly Canadian). Again,
the “backwash * is especially likely to reduce our holdings of high
rate bonds; and much of them, acquired several years ago, have been
refunded at lower rates. The weighted-average interest rates of
foreign securities underwritten here is about a flat 6 per cent, as
shown in last year's survey. The average yield of these investments
is somewhat higher, because of bond discounts: but the estimated
principal of our investments abroad consists of par values, for the
most part. I)irect investments are estimated to have yielded 7 per
cent.
The Kindersley report of 1928 on British oversea investments
computed yields averaging 7.49 per cent on total investments, which
included enormously profitable tea and rubber plantations. Our |
direct investments, include, besides some very productive holdings, a -
half billion or so, in sugar production in the West Indies, which had
a bad year; huge holdings of undeveloped petroleum, mineral, and
forest lands; and an accumulation of quite worthless mines in
Mexico and Canada.
14 Dr. Max Winkler's estimate for January 1, 1930, is $16,604,052,000.

32
Yield of Foreign Investments in 1929. |

The compiler's estimate for the total yield during 1929 of long
term American investments abroad is $876,000,000. This includes
an estimated half-year's dividend on half of the net increase in these
investments during the year; and it includes $5,000,000 for estimated
profits from construction abroad by American engineering houses,
an item often indistinguishable from yield on investment.
YIELD OF FOREIGN LoNG-Trºyestments IN THE UNITED
No census of foreign long-term capital in the United States has

ever been taken and estimates of its total vary widely. The Com
missioner of Internal Revenue reports that no estimate can be derived
from income-tax statistics. Perhaps the best move in building an
estimate of total foreign investments in the United States would be
to circularize the registrars of American corporations. This was
done in 1914 by Dow Jones & Co., but its report covered only 114
corporations.
In 1927 and again in 1929 American consuls and commercial at
tachés were instructed to forward estimates of American investment
holdings in the territories to which they were assigned. The results
for 1929 appear in a foregoing section entitled “ Šºy of Certain
Invisible Data by Countries,” and there is a lengthy discussion of
the subject in the 1927 issue of the series.
Total Foreign Long-Term Investments in the United States.
As the table shows, England is the principal investor in the United
States, with something like $1,560,000,000, followed by Canada with
about $935,000,000. Netherlands, Germany, and France follow, with
around $400,000,000 each; much of Germany's holdings is still in
the charge of our Alien Property Custodian. Probably in every
country of the world, American securities are held by banks and
insurance companies or by at least a few wealthy persons. The
estimates of American holdings in the 31 countries for which figures
were obtained aggregated $4,513,000,000 on December 31, 1929.
Countries not entered in the table would probably raise the total to
at least $4,700,000,000.
This aggregate figure is assumed to represent the value of the
investments—not the actual sums originally tied up here by for
eigners in past years nor the par values of securities. In other
words, it is the estimated capitalized value of earnings. It excludes,
of course, holdings by alien residents of the United States. It ex
cludes, also, the enormous volume of short-term foreign capital kept
in this country for dollar-exchange purposes or invested in accept
ances and brokers’ loans. When these short-term funds are counted
it is evident that there is more foreign capital in the United States
to-day than at any other time in its history.
The Rate of Capitalization.
If capitalized at 5% per cent, on the average, the yield of the esti
mated principal was about $259,000,000; this low rate is suggested
because of the marked inflation in American stock prices, until late
in 1929. It should also be borne in mind that much of the yield
of these securities in recent years has been in the form of stock divi
dends. This sum is assumed to be net after deducting income-tax
payments into the United States Treasury by nonresident aliens. .
During 1928, a period of low yields, foreigners seem to have in
creased their investments here by about $450,000,000. If the average
yield was only 4 per cent, the 1929 figure in the balance of payments
would be $18,000,000 above the 1928 figure. This would be
$270,000,000.
The average ratio of net profits to the net worth of 1.520 manu
facturing, mining, and merchandising corporations in the United
States during 1929 was 12.8 per cent, compared with 11.7 per cent
in 1928, according to figures compiled by the National City Bank.
The average of dividends paid would be lower, of course. An exami
nation of the American industrial stocks listed on stock markets
abroad suggests that foreigners are heavy holders of the so-called
blue-chip stocks, whose rise has been so spectacular in the past five
Gars.
That American prosperity will continue for many years, with no

very protracted setbacks, is seemingly one of the few predictable
things. The resulting increased yield on existing foreign investments
here is an important element in any consideration of our future
balances of payments. The per contra item (yield of existing Ameri
can investments abroad) is subject to different conditions. ... An un
usual proportion of these investments is in bonds, whose dividends
can not increase but tend to decrease through refunding at lower
rates whenever world money rates decline even temporarily.
SHORT-TERM INTEREST AND COMMISSIONS
Although British balances of payments consider only six or seven

items in all, one of those is “estimated receipts from short interest
and commissions.” Because of the importance of London in inter
national finance, such emphasis is warranted. In each recent year
the estimated total of British receipts from this source was about
$290,000,000, or about half as much as the estimated net national
income from British shipping. The British estimate for “commis
sions” covers ſees on acceptances, discounts on foreign bills, mer
chanting commissions on oversea produce, stockbrokers’ commis
sions, and earnings on foreign-exchange transactions. It includes,
also, insurance remittances from abroad and commissions of bankers
who underwrite oversea capital issues; these are otherwise classified
herein.
Short-Term Interest Paid and Received.
The results of the questionnaire to bankers, described herein under
the section entitled “ International Movement of Short-Term Capi
tal,” are the basis for estimates of our international receipts and
payments on account of short-term interest. It is assumed that the
average amount of each of the several classes of accounts outstanding
throughout the year was equal to the mean between the amount at
the beginning of the year and the amount at the end, except in the
case of brokers’ loans, which are assumed to have risen to something
like $500,000,000 before the stock market crash in October ºn.
November.
Average yearly money rates, derived from the Federal Reserve
Bulletin or ascertained by inquiry, are applied to these mean
114049—30—6
34
amounts; item 3 is disregarded; and the estimated amounts of ac

ceptance commissions are added. Rather uniform rates on foreign
deposits in this country are enforced by the New York, clearing
house. The usual fee for keeping funds in brokers’ loans is about one
half of 1 per cent per annum. -
The results thus found are $144,000,000 paid to foreigners and

$88,000,000 received from foreigners.
Interest on a bank account may accrue for years before the de
positor withdraws it, and it does not directly affect the balance of
international payments until it is withdrawn. On the other hand,
our balance-of-payments item. “ changes in international bankin
accounts, as revealed by questionnaire,” is based on the balances of the
banking accounts from year end to year end; and those balances may
include some of the interest accrued during the year. Yet we are
compelled to assume that the net change in those balances was a net
cash claim. Therefore, short-term interest in the balance of pay
ments is perhaps best regarded as a corrective entry.
Stock-Transfer Taxes and Brokerage.
IDuring 1929 foreigners sold to Americans about $1,314,000,000
of American securities, as seen in the section entitled “International
securities movement.” The seller is charged stock-transfer taxes of
2 cents on each share by both the Federal Government and New
York State. Assuming that the volume of securities sold to Ameri
cans by foreigners, excluding bonds, was $1,000,000,000 and that the
average quotation of all stocks was $100, our stock-transfer tax
receipts totaled something like $400,000. -
A brokerage of 12% cents per share is charged to both buyer and

seller in all security transfers. Assuming that all but $500,000,000
of the transactions under items a, b, c, and d of the international
securities movement were on American stock markets, brokerage re
ceipts from foreigners are estimated at $4.625,000. Other miscel
laneous income to brokers in their foreign accounts is estimated to
have raised this figure to $7,000,000.
Interest paid by foreign speculators on margin is an item of bal
ance-of-payments dimensions. If these speculators were all “long
of the market,” if they maintained their positions for one-eighth of
a year, on the average, their average volume of borrowings through
out 1929 was around $60,320,000. The average renewal rate on call
loans for the year having been 7.03 per cent, America's receipts
from this source were about $4,240,000. The like figure for 1928
was also about $4,000,000.
Financial Commissions and Brokerage.
Practically all receipts by Americans, for exports both visible and
invisible, are made in dollar exchange. Moreover, some American
payments to foreigners are made by $ºw York draft or dollar cur
rency. Others are made in exchange on foreign countries. Most of
the annual total of our international receipts and payments, aggre
gating upward of 20 billions, results in a purchase of foreign ex
change, upon which American or foreign bankers make a profit.
There is apparently no means of estimating how much Americans
pay to foreign banks, or foreigners pay to American banks, in gross
profits on foreign exchange. It will be assumed, therefore, that the
two sides of the account balance. The same assumption must be
35
made as regards the numerous other services of international banks,

and as regards the profits from arbitrage transactions, whether on
securities or in foreign exchange.
Equally elusive are stock-market brokerages and the profits and
losses of foreigners from speculative “fliers ”on Wall Street. Specu
lation by foreigners, Canadians chiefly, is extremely important; and
foreign speculators in stocks, as a group and in the long run, can
hardly avoid paying heavily to American brokers and to pool opera
tors. With the rising security prices of recent years, however, they
may have profited. Lack of knowledge on this point is a sizable
defect in these annual surveys.
IMMIGRANT REMITTANCES
Sums sent to the “old country’ by foreign-born residents of the

United States are one of the least visible of the current items. They
come from the more than 15,000,000 foreign-born residents in all
parts of the United States. practically all of whom are self-support
ing. Most of these remittances are made by internătional banks, by
postal money orders, and by United States currency in letters. The
total remitted from the United States by postal orders is public
knowledge, and the part thereof consisting of immigrant remittances
can be estimated closely enough. The far greater sum of such remit
tances through large international banks, however, usually can not
be segregated, even roughly, by the bankers themselves; while cur
rency shipments by mail leave no clues at all.
What the Item Includes.
As commonly understood, the item consists mostly of sums sent
abroad for the support, partial at least, of close relatives of our im
migrants. Advances of funds to relatives and friends for traveling
expenses to this country are also known to be important. Thus, of
the 279,678 aliens admitted during the last fiscal year. 43.4 per cent
declared to our immigration authorities that their passage had been
paid by relatives or by others, either in this country or abroad.
According to banks situated in the New York slum district, gifts
of money for Christmas and for certain other fête days are so large
as to create seasonal movements in their sales of foreign exchange.
Postal authorities of the Irish Free State reported receipts of about
170,000 postal money orders from the United States during the 1928
Christmas season. Cash legacies by immigrants dying in this coun
try are believed to be noteworthy. Interesting, if unimportant, are
sums sent back for the dowries of sisters or daughters.
Contributions to educational, relief, and religious bodies, organized
abroad, might be mentioned; but these probably constitute a minor
group of remittances, in view of the greater strength of family
rather than community ties, except in northwestern Europe. Really
enormous sums have been deposited in banks abroad by our immi
grants, notably in Italy. During the period of inflation probably
even greater sums were sunk in Germany by our German immi
grants as a speculation in exchange. Contributions to various politi
cal parties in Ireland have been mentioned, and a highway in the
Peloponnesus was built largely by Greek emigrants to this country.
Of great importance, perhaps, are the sums carried back by our
immigrants when they leave the United States permanently. Many
-
36
leave because they have failed here, and hence have little to take
away. Others, however, leave to invest their savings in the father
land. When an extremely wealthy immigrant departs to reside
abroad on his income, his investments are likely to remain here; and
the sums he draws therefrom should be classified not as immigrant
remittances but as “yield of foreign investments in the United
States.”
The expenditures by immigrants on brief visits to the homeland
are herein classified as “American tourist expenditures abroad.”
Purchases of foreign securities and other investments by immigrants
are classified as “foreign stocks and bonds bought from foreigners
in small lots” or as “ direct American investments abroad,” it being
known that most immigrants eventually become citizens of the United
States. Payments by the United States Government to veterans and
pensioners in foreign countries are classified as “United States Gov
ernment expenditures abroad.” Sums sent to churches abroad, such
as the donations to “Peter's pence,” are classified as “Missionary,
charitable, and scientific contributions.” The value of gift packages
sent abroad by parcel post is ignored, as such shipments do not ordi
narily appear in the total of exports by parcel post.
It is convenient to classify as immigrant remittances the estimated
pay roll of persons residing just over the border in Canada and com
muting daily for employment in this country. At Detroit this pay
roll was estimated at $12,000,000 in 1928 by O. M. Butler, then
manager of this bureau's district office in Detroit; his per contra
estimate (pay roll of American residents near Detroit employed in
Canada) was $1,200,000. At Buffalo and Niagara Falls the cor
responding estimates for that year, by George C. Doherty, of the
Buffalo Chamber of Commerce, were, respectively, a debit of
$2,625,000 and a credit of $300,000. The same figures, resulting in
a net debit of about $13,000,000, are used for 1929.
Sums Taken Abroad by Permanently Departing Immigrants.
The estimates of immigrant remittances by countries in the section
herein entitled “Survey of certain invisible data by countries”
include sums taken back to the homeland by immigrants departing
permanently. These sums are probably declining, under the influence
of the immigration act of 1924, which strongly favors the admittance
of quota immigrants already having one or more relatives here or
having other strong ties to the United States. The number of these
so-called emigrant aliens departed in the fiscal year 1929 was only
69,203.” which is the smallest for any recent year except 1917, when
military restrictions on travel cut the number to 66,277. In 1921 the
number was 247,718, but it was probably swollen by the widespread
unemployment of that fiscal year. In 1925 the number was 92.728.
The 1927 survey contained an estimate of $267 each taken out of
the United States by these “ emigrant aliens.” The estimate was
necessary, free-hand as it had to be.
At least three other estimates have subsequently come to hand:
1. The Czechoslovak Government circularized emigrants returned
from the United States in 1925 and 1926, numbering 2,407 and 2,358,
.* Annual, Report of Commissioner General of Immigration, 1920, p. 207. The figure
includes only aliºns who had resided in the United states for at least a year and who did
not intend to return.
37
respectively; “but only 150 in the former year and 201 in the latter
declared themselves in possession of funds.” The average sum
brought back by the 2,407 and 2,358 persons was found to be, respec
tively, only about $92.50 and $125.70. The average brought back
by those “in possession of funds" was about $1,480."
2. The Hungarian Central Office of Statistics found that of 2,870
emigrants returning from the United States in 1927, only 398 re
turned without means. Its estimated average of funds brought in
by all these emigrants was only $256."
3. The Yugoslav Government used a deductive estimate of $500
each brought back in 1927 from the United States by the 3,500
emigrants returned during 1927.” A comparison of the number of
these persons with United States statistics of Yugoslavs departed
during that year however, indicates that it includes persons on
temporary visits to the homeland, herein classified as alien-American
tourists.
Testimates for Earlier Years.
The total for this item in 1907 was estimated by C. F. Speare at
$250,000,000, an estimate based largely upon his investigation
among the small alien bankers in our leading cities. During the
same year the Immigration Commission made an estimate of
$275,000,000. Professors Bullock, Williams, and Tucker, of Har
vard University, writing in 1919, deemed those estimates too high,
and they adopted $150,000,000 a year as the average figure before and
during the war. In 1920–21 Professor Williams circularized the
banks of American cities having large foreign populations and
concluded that postarmistice immigrant remittances were at least
three times as great as those of the immediate pre-war period. He
alluded to the increased need in Europe at that time and to the high
prosperity of workers here. His bulked estimates of remittances by
Immigrants and by minor relief organizations for 1919, 1920, and
1921 were, respectively, $600,000,000, $700,000,000, and $500,000,000.
The similarly bulked estimate for 1922, by the Department of
Commerce, was $400,000,000. The 1925 survey, by Dr. Franklin W.
Ryan, carried revised estimates in round millions of net immigrant
remittances (after deducting sums brought by newly arrived immi
grants) for the years 1922 to 1925, of 325, 290, 300, and 310. These
estimates were reduced considerably by the present compiler, in the
table of comparative balances of payments toward the end of this
'bulletin. The reasons for those reductions will now be stated.
T’ast Estimates Probably Too High.
There are several reasons to believe that immigrant remittances
have declined somewhat in recent years and to expect that they will
decline further. Europe has prospered increasingly during the past
few years, and the need of assistance is less acute. When the Conti
nent generally was on a paper-currency basis, our immigrants could
sometines bestow upon relatives abroad benefits equaling three or
five times their own sacrifices in remitting them. Remittances by
any individual immigrant might be expected to decline as the years
ºfemorandum on International Balances of Payments, 1913–1927, League of Nations,
p. 89.
17 Ibid., p. 140.
18 Ibid., p. 197.
38
pass, and with restricted immigration the proportion of newly arrived

immigrants to total immigrants tend to fall. Moreover, under the
present restrictions, priority is given to wives and mothers of immi
grants—the most dependent relatives. Families have been consoli
(lated on this side of the water.
That all recent American estimates of immigrant remittances are
too high is suggested by the corresponding estimates by foreigners
of emigrant remittances received by the countries from which our
immigrants come. In the case of Germany in 1924 the total esti
mated by German economists to have been received from all countries
is about a third of what the Department of Commerce had esti
mated to have been sent to Germany from the United States alone,
and in certain other countries there are lesser disparities of the same
kind.19
Figures obtained from bankers sometimes include remittances from
merchandise and for the purchase of foreign securities or for other
investments.
In general, estimates from abroad are likely to include sums which
should be excluded for reasons explained in the foregoing discussion
of “What the item includes “; this applies notably to expenditures
by immigrants on brief visits to the homeland. Iłecause of the several
tendencies to exaggerate, no estimate is made for countries omitted
from the table.
There is little to indicate, however, that a really heavy decrease has
occurred during the past three or four years. Remittances to China
and to Spain have probably been increasing: likewise with the item
of Canadian border laborers. The estimated 10 per cent reduction,
in the 1928 survey, was probably excessive, considering that the 1927
figure was made abnormally low by temporary conditions in Italy.
Reports from Commercial Attachés and Consuls.
The estimates by the IDepartment of Commerce for the years 1922 to
1926, inclusive, were made on the basis of a questionnaire to a few of
our commercial attachés in the fall of 1922. The returns from a
similar questionnaire sent out in 1927 to a much larger number of
foreign representatives of our Government reported a total of
$241,000,000. This figure, however, was about $20,000,000 less than
normal because of the heavy withdrawal of deposits in Italy during
that year; and it was about $13,000,000 too low, because it excluded
the pay roll of Canadian border laborers. The gross figure for 1927
apparently should have been about $260,000,000, or actually $7,000,000
more than the 1926 figure as entered in the comparative statement.
The latter might reasonably be raised slightly, to denote the probable
decrease each year. Iłecause of the unusual Italian reduction in 1927,
the 1928 figure might be raised to $250,000,000.
No questionnaire was sent out for 1928. The results of that for
1929 are shown in the table under “Survey of certain invisible data
by countries.” The total of the approximately 40 estimates for 1929.
is $246,919,000; this is adopted outright.
The Final Estimate Defended.
To most countries our immigrant remittances could hardly have
increased since 1927. Accordingly, except in the cases of Italy,
* Memorandun) on Iłalance of Payments, 1911-1925, Vol. 1, p. 127, published by League
of Nations.
39
Spain,
was and China,
appreciably wherever
greater than the
thatestimate
for 1927,forthea average
particular country
of the two
estimates was used for 1929. The Italian estimate for 1927 was
abnormally low because during that year Italian immigrants drew
down their deposits in Italy to the extent of about $20,000,000, in
stead of making the usual volume of remittances. The 1927 esti
mate for China. $15,000,000, was probably too low.
The estimates for the individual countries were usually made by
our representatives abroad after consulation with foreign economists
and publicists. As the subject is by no means new to them, their
estimates are at least not naive. The margin of error in the total
is large, of course, despite the probability of many offsetting errors
in the figures by countries. That the final figure is possibly not
too high is suggested by the figures for immigrant remittances in
the Canadian balances of payments, which ranged between $258,000
000 and $296,000,000 in the three years 1925 to 1927.
A Deduction from Immigrant Remittances.
There is an important credit item with which to offset partially
this estimated debit of $246,919,000. Each immigrant admitted to
the United States is required to show to our immigration authorities
$25 in cash, plus enough to cover transportation to his inland desti
nation. Most aliens thus arriving for the first time naturally bring
in considerably more than this minimum sum. The average amount
actually shown by immigrant aliens admitted during the fiscal year
1929 (Table 11, of Annual Report by the Commissioner General of
Immigration) was about $76,60. Sums brought in but not shown
may have raised the average to about $90.
Consulting the table of “Aliens admitted by classes under the im
migration act of 1924" (see section entitled “American tourist ex
penditures overseas"), it is found that the quota and nonquota im
migrants so arriving during the calendar year numbered 265,519, this
being the total of classes Nos. 5 to 16, inclusive, minus the tourist
classes Nos. 6 and 11. Of these, about 89,000 were from Canada,
Newfoundland, and Mexico. and were considered under border tour
ist traffic: but no deduction is made on that account, because of the
extremely large number of aliens illegally entering the United States
each year. If the average sum brought in per person was $90, the
total was about $23,897,000.
The net estimate of immigrant remittances in 1928 is, therefore,
$223,000,000. The 1928 estimates are revised to a debit of 250 and a
credit of 25.
WAR-DEBT PAYMENTS TO THE UNITED STATES TRE.ASURY
The principal receipts by the United States Government from for

eign sources are sums from foreign governments on account of in
terest and principal of obligations held by the United States. The
maximum annual receipt from this source—nearly 60 years hence—
will be about $415,000,000. The annuities increase gradually, but
last year's receipts equaled nearly half the maximum annuity.
As of the dates when the debt-funding treaties were concluded, the
“present worth " of the annuities stipulated therein was $5,873,638,000
at 5 per cent compound interest.” For some purposes this sum,
* Combined Annual Reports of the World War I)ebt Commission, pp. 44–45.
40
should be included in the total estimate of United States foreign

investments. It is considerably less than foreign investments (long
term and short-term) in the United States.
In no year since 1922 have the receipts from this source been less
than $183,000,000. The total collected during the calendar years
1922–1929, inclusive, is $1,608,000,000—all of which was applied to
reducing the public debt of the Federal Government, as provided by
law. In 1929 the receipts totaled $212,002,000, as shown in the table
by countries.
PAYMENTS RECEIVED FROM For EIGN GOVERNMENTS ON ACCOUNT OF PRINCIPAL AND
INTEREST DUE ON THEIR OBLIGATIONS HELD BY THE UNITED STATES DURING THE
CALENDAR YEAR 1929
Government Principal Interest | Government Principal Interest

- -————--— —— —— — - - - -11
$287,556 ------------ Italy--------------------- $5,000,000 |------------

2,950,000 $2,625,000 || Latvia--------------------|------------ $90,000
- 3,000,000 ------------ Lithuania 35,098 143,710
250,000 || Poland------------------------------- 3,000,000
Rumania 500,000 ------------
Yugoslavia---- - ,000 ------------
Total.--------------- 61, 557, 285 150,444,885
Hungary----------------- 11, 245 57,047
Source: United States Treasury Department.
Small Deduction from War-Debt Payments.

For balance-of-payments purposes a deduction from the total pay
ments credited to the debtor governments arises from payments
received in the form of United States bonds acquired by the debtor
governments for less than par. The debt-funding treaties legalize
payments in any United States bonds issued after April 6, 1917, if
the debtor government has given a 30-day notice that this method of
payment is to be elected in whole or in part. In the eight calendar
years ended with 1929 the total of payments credited to the debtor
governments was about $1,607,600,000; of this about $1,116,100,000
consisted of principal or accrued interest of United States bonds
delivered to the Treasury.
This deduction seems to have amounted to only about $12,500,000
throughout those eight years, but it was about $4,600,000 in 1929,
about $2,600,000 in 1928, about $1,200,000 in 1927, and about
$3,600,000 in 1923. As the annuities rise in future years the deduc
tions are likely to become more important, particularly in periods
of rising money rates.
The estimates assume (1) that the bonds tendered had been pur
chased by the debtors during the three months preceding the date
of tender and (2) that the purchase price included three-fourths of
the accrued interest for which the tendering government received
credit. The average purchase price of the bonds was computed from
the market quotations of each Wednesday during the three months.
The computation, though laborious, does not pretend to fine accuracy.
War-Debt Receipts in Our Balance of Payments.
Persons unfamiliar with the magnitude of international transac
tions find it difficult to put the war-debt payments into proper per
spective. . Many have feared that these payments would have to be
received in imported merchandise in quantities that would swamp
41
domestic production. Last year's war-debt receipts were about $212,

000,000; while our receipts from foreigners totaled over $10,000,
000,000. Graphically represented, if our total cash receipts from
abroad covered the 52 square inches of this page, the space covered by
the war-debt receipts would be considerably less than that of two or
dinary American postage stamps.
The following is an excerpt from the 1926 survey:
There has been much loose reasoning as to the influence of the war-debt
receipt upon our merchandise trade. It is a serious error to say that the debtor
nations can pay us only by shipping merchandise. Our War-debt receipts are:
an invisible export. As such, they tend (1) “to detract from " all our other
exports—including not only merchandise exports but invisibles and (2) “to pro
mote " every import, whether visible or invisible. The numerous invisibles will
absorb a large part of the influence of the debt receipts, and reduction in Our
merchandise exports may absorb even more. No great increase in merchandise
imports is thus to be expected as the result of debt receipts, and a part of such
increase would be in noncompetitive goods on the free list. The reduction in Our
merchandise exports through war-debt receipts will injure us precisely as a
labor-saving device would injure us; imports, visible and invisible, will come to
us without future effort ; that is, without our being compelled to produce again a
corresponding value of visible and invisible exports to exchange for them. A
nation is not impoverished by receiving wealth.”
OTHER GOVERNMENTAL TRANSACTIONS
The aggregate receipts and payments under the head of “Other

governmental * have risen from a total of about $132,000,000 in
1922 to about $212,000,000 in 1929, largely because of the heavy cash
refunds made by the Alien Property Custodian in the more recent
years. So large and heterogeneous a group of transactions deserves
analysis, which is supplied in the table. In every item care was
taken to exclude transactions with territories within our balance-of
payments area. A few of the minor items, however, pertain to the
year ended June 30, 1929.
FOREIGN CASII TRANSACTIONS OF THE UNITED STATES Gover NMENT (OTHER THAN
WAR-DEBT IRECEIPTs), FOREIGN REPRESENTATION IN THE UNITED STATES, AND.
PANAMA CANAL TOLLS PAID BY AMERICAN WESSELS

--
- - , - |
- |
Re- Pay
Department or bureau - dº º | i Department or bureau ceipts ments
|
Treasury Department: Department of State—Con.
German mixed claims.- - 13, 512 :- i International bureaus and in
German Army costs 13, 104 -- ' demnities----------------------------- 1, 118
Advance to Greece--------------------- a 12, 167 . . . Consular ſees collected-- • 6, 561 --------
Miscellaneous bureaus--- - 135 531 Veterans' Bureau----------------- .-------- 8,300
Alien Property Custodian- - 50,000 Pension Bureau --------------------------
- - - - - - - - 1, 359
Navy Department------- 30, 410 Post Oſſice Department d--- 366 3, 186
War Department----------------------- 20, 305 Department of Commerce---------------- 1,700
Panama Canal.------------------- h 17,000 | 13, 107 I)epartment of Agriculture- 73 6
Department of State: :
Foreign representation here----- 9,000 i--------
I)epartment of Labor ------
Department of Justice------
Q
(•
Q t 3
American representation abroad -------- 8, 342 Department of Interior----------- (•) (•
American embassy and legation - —|
buildings----------------------------- 1,409 Total.----------------------- 50,751 152, 270
• A nonrecurring transaction.
b Net revenue from canal operations transferred from the Zone to Washington,
• The per contra transactions appear under “Other merchandise adjustments.”
d Excluding postal money-order transactions.
• Negligible.
ai Soe also discussion of “promotive" and “detractive '' influences in section entitled.
“Purpose and Methods of Balance of Payments.”
42
MISSIONARY, CHARITABLE, AND SCIENTIFIC CONTRIBUTIONS
No general questionnaire was sent out to ascertain the expenditures

abroad in 1929 of religious, charitable, and scientific organizations in
the United States. It was assumed that most of the contributing
organizations would continue to remit in about the same volume as in
1928, on which a complete report was printed in the 1928 survey.
Iletters were sent, however, to five of the largest remitting organi
zations. Protestant contributions in 1929 will be entered at $29,000,
000, or $1,000,000 less than in 1928. The American Joint Jewish
Distribution Committee reports $1,114,000 less for 1929. The Ameri
'an Red Cross spent about $65,000 less outside our balance-of-pay
ments area: as in 1928, its heaviest remittances were to Porto Rico
in connection with the hurricane. The heavy remittances by the
Rockefeller Foundation were about $16,000 less. Remittances by the
Near East Relief were off $139,000.
These five important organizations reported an aggregate decline
of $2,334,000. The total for 1928 was $52,471,000. That total, how
ever, incorrectly included $1,503,000 remitted by the Hebrew Shelter
ing and Immigrant Aid Society, which functions as a bank; its
operations should have been included under “Immigrant remit
tances.” The 1929 total was, therefore, about $48,634,000; that for
1928 is revised to a debit of 51.
INTERNATIONAL INSURANCE TRANSACTIONS
Life insurance in force in the United States is about three times

as great as in all other countries combined. The fields of fire, cas
ualty, fidelity, and marine insurance also are covered by our highly
diversified insurance organizations. The annual premiums on Ameri
can insurance, of all kinds, sold to policyholders beyond our frontiers
are extremely large. Not all of this, however, should enter the bal
ance of payments; the administrative expenses of our companies
abroad, plus their foreign investments made out of premiums re
ceived abroad and insurance, claims paid to policyholders abroad.
probably reduce this invisible export at least by half. Besides,
our premium payments to foreign insurance companies, including
payments for reinsurance, constitute, an outgo offsetting, partly or
largely, our insurance exports. Available statistics are fragmentary
and never very recent: such as are pertinent are summarized below.
American Insurance Exports to Canada.
Canadians are our most important foreign policyholders. I)uring
1927 the 17 American life-insurance companies in Canada had a
“premium income and annuity consideration " of about $58,000,000
(Report of the Superintendent of Insurance, Dominion of Canada,
P. lii.), The total assets in Canada of these American companies at
the end of 1927 was about $287,000,000 (p. lxvii); and their gross
amount of insurance in force on that date was $1,659,000,000 (p.
lxxxv).
In September the compiler circularized the 14 American life-in
surance companies which were writing new business in Canada in
1928, requesting “a rough estimate of the excess, in 1928, of your
43
remittances to your head office in the United States (exclusive of

profits) over receipts from your head office.” The investigation
yielded little that was concrete, despite the obvious desire of the
companies to cooperate. The books of the companies are not set up
to show the desired information. Several of the companies make
a practice of depositing exclusively in Canadian banks and of in
vesting exclusively in Canadian securities. Such part of the latter
as are bought on Wall Street, however, would be included herein
under “International Securities Movement.” I)uring the war the
Canadian insurance act was amended to require all foreign life
insurance companies to invest at least half of their Canadian deposits
in Canadian securities, but the amendment was later repealed. In
vestments may now be made in any security authorized by the Treas
ury Board; these include foreign government and state bonds.
American fire-insurance companies operating in Canada number
almost exactly 100: in 1928 net premiums collected by them aggre
gated about $19,000.000. In addition are a host of American mis
cellaneous insurance companies in Canada dealing with such
branches as tornado, hail, credit, ſidelity, plate glass, boiler, burglary,
automobile; their net premiums in 192S totaled about $6,000,000.
(Dominion Superintendent Report. Fire and Miscellaneous, 1928:
pp. cxcv and c vii.)
American Insurance Exports Elsewhere.
American companies transact insurance business in more than 30
countries. Most of the business is in this hemisphere: very little of
it is in Europe; some of it is in the Far East. Most types of Amer
ican insurance companies are represented in the United Kingdom.
In ('anaºla we lead British companies in life and in certain miscella
neous insurance, but follow I}ritish companies in ſire insurance.
American companies seem to lead in Cuba and the Philippines, and
they have important interests in nearly all the Latin American coun
tries and China. American companies operating in Cuba and the
Philippines run into the dozens.
American Imports of Insurance.
About 68 regularly licensed and about 18 nonlicensed foreign com
panies transact fire and marine insurance business in the United
States. Net premiums collected in 1927 by the licensed companies
totaled $160,210,000 (p. A–164, Fire and Marine, 1927). The net
amount remitted abroad to their home offices during 1928 by these
United States...branches of foreign fire-insurance companies was
$13,888,533. The corresponding marine-insurance figure was $2,
385,662; total, $16.274,195. (The Insurance Yearbook for 1920,
Fire and Marine, p. 488.) This is one of the few figures of real use.
for-balance-of-payments purposes, anywhere obtainable. The fact
that the fire-insurance remittances to foreigners (including Cana
dians) exceed the corresponding marine-insurance figure is somewhat
surprising, particularly as the latter figure must include hull insur
ance, in which American companies have great difficulty in com
peting. , Probably some of the net remittances of these companies
should be classed as “ yield of foreign investments in the Únited
States " rather than as imports of insurance services.
44
There are in this country numerous Canadian and British life and
miscellaneous insurance companies. Figures for their operations are:
not summarized in the statistical publications on insurance.
Conclusion.
The net figure for America's international dealings in insurance of
all kinds can not be computed or estimated satisfactorily. It is
probably not a large figure. Nor can the total volume be closely
approximated. The extremely rough assumption is made that the:
account balanced at $70,000,000 in all recent years. This conclusion.
necessitates revisions in the estimates of previous years.
MISCELLANEOUS MINOR ITEMS
International Advertising.
No other nation makes such extensive use of advertising in either
its domestic trade or its export trade as the United States. Eight
leading export advertising agencies at New York carry a total of
nearly 250 export advertising accounts, the total bookings of which
have been carefully investigated by the specialties division of the
Bureau of Foreign and Domestic Commerce. At least six important
American advertising agencies have established their own branches in
other parts of the world, primarily “to serve the accounts” of a few
of the largest and most prolific advertisers of the United States.
Much additional American advertising abroad is placed through,
foreign agencies or directly by our manufacturers. In the case of
certain commodities, disbursements for this purpose are deducted
from the proceeds of sales abroad by the representatives of the
American exporter.
The total foreign advertising bill of the United States in 1929 was.
probably not less than $50,000,000, and this does not include volun
tary advertising by foreign concerns on behalf of American merchan
dise. Much of this goes to Canada. Our previously published
estimates are clearly too low and must be revised. Exact figures are,
of course, impossible to obtain.
Regarding the flow of advertising funds in the opposite direction,
there is less to go by. A glance through the advertisements of lead.
ing New York newspapers reveals a tremendous emphasis on im
ported merchandise, but how much of such advertising is financed by
the foreign suppliers of goods is unknown. There is a constantly
growing volume of tourist advertising directly paid for by foreign
governments, railroads, steamship companies, and hotels. Besides.
are cooperative campaigns financed by foreign producers; witness
Japan tea, Ceylon tea, Brazilian maté, Brazilian coffee, Norwegian,
cod liver oil, and Spanish olives. A fair figure for the cash remit
tances involved during 1929 would be $5,000,000.
The foregoing information was supplied by the chief of the
specialties division of this bureau.
Cablegrams, Radiograms, and Telephone Services.
For the 1927 survey, in order to learn the totals involved in our
international communications, the seven companies operating in this
field were circularized and assured that their individual returns
would be guarded in utmost secrecy. All seven companies reported
45
the sums they had received from foreigners and paid to foreigners
during the calendar year 1927. It was thus found that during 1927
communication companies in the United States collected $21,706,000
from foreigners and paid foreigners $18,095,000.
As the volume of these transactions probably does not vary sharply
from year to year, the companies were spared the inconvenience of a
uestionnaire on their operations in 1928. Both the credit and the
3. of this account increased by about 5 per cent in 1928, according
to the chief of the communications section of this bureau. This esti
mate was based upon oral information received from officers of the
companies. The credit, therefore, was 23; and the debit 19.
The seven companies were again circularized as to their foreign
operations in 1929, and again all seven reported. The year's opera
tions resulted in collections from foreign countries of $27,070,814 and
payments to foreign countries of $19,014,657. The interpolated fig
ures for 1928 would be a credit of 24 and a debit of 19; but no re
vision is made in the 1928 estimates.
Imports of Canadian Electric Power.

Beginning with the second quarter of 1926, the Dominion Bureau
of Statistics has published statistics on the kilowatt-hours and values
involved in its export of electrical energy to the United States. In
1929 the kilowatt-hours numbered about 1,565,000,000, valued at
$4,075,231. The per contra item in the Canadian figures came to
only $97,020.
Subscription to Magazines and Newspapers.
The 1926 survey estimated foreign subscriptions to American mag
azines and newspapers at $5,000,000, and that figure is now repeated
for 1929. The Blue Book of the Audit Bureau of Circulation for
1926 showed that foreign subscriptions to 27 of the more important
American periodicals totaled about $2,950,000. Most of these sub
scriptions were by Canadians.
The per contra item, American subscriptions to foreign newspapers
and magazines, was arbitrarily estimated at $1,000,000 in 1926 and
again in 1927. This estimate was certainly too low, as was recently
pointed out by Prof. Herbert Feis, of the University of Cincinnati,
A circular letter to a few of the larger public libraries of the
country elicited the following information: In 1927 the New York
Public Library received 12,691 foreign periodicals; of these, 5,191
were paid for, and the rest were obtained as gifts or through ex
change. In 1928 the Chicago Public Library was receiving 289
foreign newspapers and magazines; the Free Library of Philadelphia
was receiving 307; the San Francisco Public Library, 114: that at
Detroit, 280; and that at Boston, 690.
Most of these foreign subscriptions by public libraries and by uni
versities go through the hands of a relatively small number of firms
especially equipped for such service. Several of these firms were
circularized, but only one was willing to estimate the total business
of all such firms, plus the subscriptions sent direct. That firm esti
mated American subscriptions to foreign periodicals in 1928 at
$3,000,000. This estimate is adopted for 1929.
46
International News Services.

American newspapers and press syndicates gather news from the
four corners of the globe, at considerable expense, and there is a
per contra item of “American news exported.” Much of the ex
penditure under this head is believed to be included herein under
cablegram and radio charges and under tourist expenditures; hence
no separate entry is made in the table.
FOREIGN CAPITAL SECURITIES PUBLICLY OFFERED IN THE
UNITED STATES
The purchase of foreign securities and the making of other new

foreign investments have for many years constituted our largest
invisible import. These transactions for 1929 are herein included
under three groups: (1) Foreign capital issues publicly offered in the
United States; (2) privately taken foreign issues and direct invest
ments abroad; and (3) foreign stocks and bonds bought from for
eigners in small lots, as learned by questionnaire. The third group
is covered under the “International securities movement.”
A separate bulletin (released on April 9)* by this division is
devoted to the details of foreign securities publicly offered in this
country during 1929. It contains an itemized schedule of the 148
foreign issues brought out here during the year, classified by coun
tries and areas, by type of issuer, and by months and quarters. It
contains, also, a review of the conditions responsible for the great
decline in this type of financing. The following table was extracted
therefrom.
PAR VALUE OF FOREIGN SECURITIES PUBLICI.Y OFFERED IN THE UNITED STATES
IN 1929
Nominal capital I |
Government | Total net Net discount

Country of issue or destination
of capital
issues and | nominal (less (—) or
government-
guaranteed
Corporate
issues
Total issues | reſunding) | premium (+)
corporate
issues
|
Europe: .. i
International $7,720,745 $7,720,745 $7,720.745 i--------------
-------------- 3, 575,000 : 1, 575,000 –$187,687
|
200,000 200,000 I 200,000 |-------F57-75;
10, 149,000 31, 625,000 20, 525,000 : –1,984,590
10,060, 597 : 19,000, 597 19,000, 507 | —100,000
13,700,000 || 13,700,000 13,700,000 —511,875
-------------- 5, 419,500 5,419,500 —650,340
64, 671, 339 64, 671, 339 64,671, 339 —522,000
115, 501, 68i , 145,972, 181 141,972, 181 i –3,956, 492
149,019,700 || 308,730,300 289,693,425 –2,066,235
59, 827, 200 59,827, 200 ||--------------

4,685,000 3, 185,000 –60,000
16, 383,000 16, 383,000 —1,279, 190
70, 400,000 70,400,000 –3, 266,000
1, 750,000 1,750,000 —122,500
17,927, 500 17,927, 500 |--------------
1, 337, 500 1,337,500 —50,000
1, 440,000 1,440,000 –2, 500
2,700,000 2,700,000 |--------------
I
Total Latin America.------ 67,018,000 | 109,402,200 175,450,200 : 174,950,200 –4, 780, 190
infº..."buijº."
*American Underwriting of Foreign
g Securities in 1929,, by
Dy Paul D. Dickens.
ckens Trade
47
PAR VALUE OF FOREIGN SECURITIES PUBLICLY OFFERED IN THE UNITED STATES

IN 1929–Continued.
| |
Nominal capital -
- - - -- - - - -- - - - - - --------- - - ----
|
ſ - i
,--...-- Government | Total net Netdiscount
Country •ºlestination
-
º | nominal (less (–) or

ap government | Corporate Total issues refunding) premium (+)
guaranteed issues :
corporate | |
issues | - i
i | | - - - | - - --
-
- -
--------- - –
Far East: ! i .
China------------------------------------- $50,000.0% $50,00% $50,000,000 --------------
Japan------------------------------------- | 11,450,000 11,450,000 | 1,450,000 –$429,375
Total Far East -------------------------- | 61,450,000 i
61,450,000 || 51,450,000 :| –420, 375
United States Territorics and | - | I

possessions: : | i
Alaska------------------------------------- 5, 200,000
i 5,200,000 5, 200,000 --------------
Hawaii------------ - $3,520,000 375,000 : 3, 805,000 3,895,000 +72, 844
Philippine Islands - 500,000 2,500,000 3,000,000 3,000,000 : +8, 850
Porto Rico 1,070,000 -------------- 1,070,000 1,070,000 +35,476
Total Territories and pos- | . |

Sessions------------------ 5,000,000 8,075,000 13, 165,000 | 13, 165,000 +117, 170
Grand total offerings -- - - - - 262,319, 100 | 443, 448,581 || 705,767,681 671, 230, 806 — 11, 115, 122
Gross and Net Public Offerings During 1929.

The total par, or “nominal,” value of foreign capital securities
publicly offered in the United States during 1929 was about
$705,768,000. This figure includes $10,165,000 of issues by the
Territories or possessions inside our balance-of-payments area. The
nominal value of the publicly offered capital securities issued outside
the United States balance-of-payments area was, therefore, about
$695,603,000.
After computing this entry in the balance of payments for the
gross export of capital resulting from the purchase of this class of
foreign securities, the following three deductions from the total par
value are necessary:
(a) About $34,537,000 for the new issues know or estimated to
have been used for refunding (converting) old issues held by Ameri
cans. This figure excludes, of course, refunding to Americans from
the new issues by the United States Territories and possessions
within our balance-of-payments area.
(b) About $11,223,000 for bonds and stock discounts (minus the
relatively few premiums).
(c) About $14,813,000 for commissions retained by American
underwriters from the proceeds of issues. This estimate is made on
the basis of information from American financiers engaged in for
eign underwriting. This year’s abnormally low figure resulted
chiefly from the unusual proportion of Canadian issues, on which
commissions are very narrow. Iłesides more than a seventh of the
year's total was issued to the stockholders of Anerican corporations
operating abroad.
A fourth deduction can not be separately computed. Certain
securities publicly offered here during the year may have been resold
to foreigners in small blocks later in the year. This is accounted for
under the “international securities movement” as “foreign stocks
and bonds (old and new) resold to foreigners.” -
48
Forthcoming Handbook on American Underwriting.

For several years this division has been investigating, foreign
securities publicly offered here since 1913. The results will appear
in a handbook to be issued this fall. While this handbook was being
complied, revisions of the division's figures for past years were
frequent. The table, by years, herein printed for the first time, may
be considered as final.
TOTAL FOREIGN CAPITAL Issues (Gover NMENTAL AND CORPORATE) PUBLICLY

OFFERED IN THE UNITED STATES, 1914–1929
Nominal capital - Refunding

Yoar t i | Estimated net
Number i Amount Number | Estimated nominal capital
of issues of issues | amount
| l
26 $44,670,288 1 $655,000 $44,015, 288

80 817, 529, 272 6 13,675,000 803, 854, 272
102 1, 159,601, 264 4 3,700,000 1, 155,901, 264
65 720,297,150 9 37,650,000 682,647, 150
28 23, 465,000 3 2,600,000 20, 865, 000
65 | 771,044, 700 12 379,257,300 391,787, 400
104 602, 937,986 4 105, 500,000 497,437,986
116 692,412,963 12 69, 105,083 623, 307,880
152 863,048,284 , 16 99,421,300 763, 626, 984
76 497, 597, 350 8 77, ,000 420, 597, 350
120 1,217, 217,937 17 247.993, 500 969,224,437
164 1,316, 166, 150 23 239, 700,000 1,076, 460, 150
230 1,288, 459, 182 28 162,978,000 1, 125,481, 182
265 1,577, 414, 260 22 240, 654,000 1,336,760,260
221 1, 489,361, 680 26 238,410, 413 1,250,951, 267
148 705, 767,681 1i 34, 536,875 671,230,806
Total, 1914–1929------------- i., 962 13, 786,991, 147 | 202 | 1,052, 836,471 11, 834, 154, 676
PRIVATELY TAKEN FOREIGN SECURITIES AND DIRECT

INVESTMENTS ABROAD DURING 1929
The finance and investment division records, from its varied

sources, all information obtainable upon foreign-loan transactions
of the United States—not simply public offerings here of foreign
stocks and bonds. Its 1929 records cover 226 transactions, classified
as foreign securities privately taken (in large blocks), direct invest
ments, credit grants, and the floating of securities of United States
investment trusts known to be specially interested in foreign securi
ties. Some of the latter have their own agents abroad, from whom
they buy securities directly; such purchases would not appear in the
returns from the questionnaire to bankers on the international securi
ties movement.
The schedule of these transactions is omitted from this survey.
As such transactions are not openly advertised, and in some cases
are based upon rumor, liberal reservations must be made as to both
the accuracy and the completeness of the schedule. In this field
there are no privately published compilations with which to check.
Omission estimates are necessary. On the other hand, the credit
grants are duplicated extensively in the returns from the question
naire to international bankers regarding bank loans; and deposits;
and the foreign securities privately taken, whether by investment
trusts or others, are duplicated extensively in the returns from the
49
questionnaire on the international securities movement. Only the

direct investments in physical property abroad are free from the
risk of duplication. The compiler's conclusion as to the proper
amount to enter in the balance of payments is made after a scrutiny
of each item in the division's schedule. The 1930 schedule is perhaps
unusually complete; the census of the total of United States direct
investments outstanding, begun in the summer, uncovered a number
of recent transactions which might otherwise have been overlooked.
The omission estimate ($80,000,000) is assumed to include also
sums “plowed in ’’ from the yield of previous investments. Such
sums are assumed to be included in the credit items “Earnings of
private long-term investments abroad.”
It is estimated that the 1929 total of such transactions as are not
duplicated elsewhere is $335,000,000, distributed in round millions of
dollars as follows: Europe, 160; Canada, 70; Latin America, 95;
and Far East, 10. -
REDUCTIONS OF PREVIOUS PRIVATE AMERICAN INVESTMENTS

ABROAD
The United States portfolio of foreign investments was expanded

during 1929 by the three groups of acquisitions already discussed.
At the same time three classes of transactions were reducing the
portfolio: (1) Retirements of foreign bonds by sinking-fund and
redemption payments, (2) resales to foreigners of American direct
investments abroad, and (3) sales to foreigners of foreign stocks and
bonds, mostly floated here in previous years. The third class is
covered in the section headed “International Securities Movement.”
Neither reductions nor increases in the market value of our pre
vious foreign investments held throughout the year directly affect
the balance of payments, as they do not result in cash claims honored
during the year.
Each year the finance and investment division requests from ever
United States underwriting house “a list (by issues) of sinking fund,
amortization, or redemption payments made during the year on all
foreign loans ever brought out by your house, or for which your
house now acts as paying agent or trustee.” With these lists as a
basis, two itemized schedules were prepared, one for redemption pay
ments and the other for sinking-fund and amortization payments.
A special investigation was made last summer to ensure that no pay
ing agent or trustee was being overlooked.
Bond-Redemption Payments to Americans.
In many cases bond redemptions are made by call prior to ma
turity, at a rate stipulated in the bond contract; such operations
necessitate the questionnaire to American underwriting houses. This
division has detailed records of more than 1,800 foreign capital issues
publicly offered here before 1929. All bond issues maturing in 1929
were studied to see whether they were accounted for in (a) the re
funding column of the 1929 schedule of publicly offered issues, (b) in
the questionnaire returns, or (c) in both places. Our 1929 figure of
$177,783,833 (exclusive of refunding entries in the 1929 schedule of
public offerings), against 24 bond issues publicly offered here, thus
50
checked, is very accurate.” Its actual geographic distribution in

round millions of dollars follows: Europe, 101 (reduced below to
93); Canada, 75 (reduced below to 71); and Latin America, 2.
Redemption payments by Territories and possessions within our
customs area are excluded.
The total in 1929 was the smallest in six years. High money
rates—that is, the world shortage of capital—may have prevented
redemptions in this market from funds borrowed in foreign money
markets. The largest issue redeemed was the $54,000,000 of 10-year
5%'s of the Dominion of Canada. The next largest in the list was
the $25,000,000 issue of Kingdom of Sweden 6's.
These annual surveys formerly made omission estimates of sums
received by Americans in redemption of bonds bought in small lots
from foreign stock exchanges. No such estimate will be made for
1929. Instead, a deduction is necessary for payments to foreign
holders on bonds originally floated here. The questionnaire used
in 1929 requested rough estimates of the amount of such payments.
Exact figures would be unobtainable, as the foreign-held bonds are
usually tendered for redemption by correspondent banks at New
York, along with domestic-held blocks: so the redemption agent does
not know who ultimately receives the funds. Despite this difficulty,
useful information was obtained; on the 1929 list 5 per cent would
probaily he a fair estimate of the share going to foreign holders of
the Latin American and Canadian issues and about 8 per cent on the
European issues.
In round millions this reduces the geographic figures to the follow
ing: Europe, 93: Canada, 71; and Latin America. 2.
Sinking-Fund Payments to Americans.
A large proportion of the foreign capital securities publicly offered
here are sinking-fund bonds. Thus, in 1928, of the 220 publicly
ofle, d issues, about 112 were bonds carrying sinking-fund provisions.
Payments under such provisions, however, commonly do not begin
until, say, the third or fifth year after the bonds are floated.
The questionnaire replies indicate that in nearly all cases the sink
ing-fund payments were promptly used to retire foreign bonds by
purchase in the open market from Americans. The retired bonds are
usually held until maturity by the paying agent; in some cases they
continue to draw interest, which is used to swell the sinking fund.
The eſtect, for lalance-of-payment purposes, is virtually that of re
tirements upon serial maturities. It is especially rare in foreign
financing for the paying agent or trustee tº be authorized to build ilp
an amortization port folio with any securities he may elect. In other
word-, sinking-fund payments are really bond-redemption payments
on the installment plan.
Our 1929 schedule of sinking-fund payments totals $109,790.329.
It covers over 300 different bond issues by 39 different countries.
The checking with the 1928 schedules was so satisfactory as to indi
cate that both schedules are trustworthy.
In the case of foreign issues brought out in the United States and
having a paying agent here, there are probably next to no omissions.
Unlike redemption payments, there is no need for an omission esti
A † schedule of
in Ila list.
redemptions was checked, also, with those published regularly in the
-
mate of payments against foreign bonds publicly offered abroad and

later acquired by Americans in small blocks in the international
securities movement, for sinking-fund retirements of such bonds
would be caught by the “big questionnaire * under “foreign stocks
and bonds sold abroad.” Accordingly the 1929 figures are entered in
the balance of payments as compiled. The geographic distribution
in round millions of dollars is as follows: Europe, 64; Canada. 6;
Latin America, 34; and rest of world, 6.
Resale to Foreigners of American Direct Investments Abroad.
American direct investments abroad have been estimated as high
as $5,000,000,000; and they have been increasing at the rate of, say,
a quarter billion a year. Any such large holding—consisting of per
haps thousands of items, large and smal!--naturally has its “back
wash,” too. There must have been very numerous instances of the
resale of such investments of foreigners, although definite informa
tion on such transfers rarely comes to hand.
Large American coli panies maintain, for years on end, their for
eign warehouses, petroleum tanks and reſineries, mines, forests.
plantations, branch factories, and branch stores. Smaller concerns
and individuals are likely to hold their direct investments for shorter
periods.
In 1929 schedules were compiled. from the press and other sources.
of such items under this head as could be uncºvered. Omission
estimates of 20 per cent raise the total to $58,000,000, distributed
geographically as follows, in round millions: Europe, 3S: Canadia,
18; and Latin America. 2.
NEW I) IRECT INVESTMENTS IN UNITED STATES HY I'OREIGNERS
DI’RING 1929 ANI) CHAN (; ES IN PREVIOU'S INVESTMENTS
Direct Investments.
The organization of the Bureau of I's reign and IDomestic Com
merce is such as to enable it to obt-lin a fair estimate of the amount
of new foreign capital direct y invested in pinysical properties in
this country during a particular year. The bureau has about 70
district and cooperative effices, strategically located throughout the
country; also it has at Washington 15 commodity divisions in close
contact with the foreig: transactions of every branch of American
industry. One of the illiies of these divisions and regional offices is
to ascertain the capital coinpo-iti is of concerns applying for bureau
services. In these and other ways, all important in reases in the
ſoreign ownership of American enterprise come to the knowledge of
this bureau.
A questionnaire to all these divisions and regional offices covering
the cale:Idar year 1929 uncovered less than $500,000 of new invest
ments in this class during the year, a reduction from the 1928 total
of $34,600,000. An interesting item this year was foreign investment
in citrus orchards in I'lorida.
Nine large transactions recorded from the financial press by the
finance and investment division raise the total to $27,625,000; and
an omission estimate brings our final figure to $31,000,000. One of
the items was the flotation in England of shares of the American
Austin Car Co.
52
Evidence was obtained of the resale to Americans of foreign direct

investments here of approximately $15,000,000 during 1929.
Bond-Redemption and Sinking-Fund Payments to Foreigners.
There is no means at present to compile itemized schedules of
bond-redemption and sinking-fund payments by Americans to for
eigners. A rough estimate is necessary. The 1928 estimate was
$70,000,000, based on the ratio of per contra payments on American
investments abroad to the total of such investments. The 1929 figure
is assumed to be $77,000,000.
INTERNATIONAL SECURITIES MOVEMENT
Magnitude of the Movement.

The largest group of foreign transactions of the United States,
after its merchandise trade, pertains to “stocks and bonds inter
nationally transferred through stock markets.” In 1928 the total of
these transactions seems to have been about $3,804,000,000, or more
than one-sixth of our international turnover. Some idea of the pre
war importance of these security transfers is gained from the fact
that the Dollar Securities Committee, created by the British Govern
ment in July, 1915, to “mobilize " British holdings of dollar securi
ties, acquired 1,810 different United States securities valued at
$1,322,000,000; most of these, in number at least, had been bought
in small blocks on our stock exchanges.
Through this ceaseless ebb and flow of securities the United States
has had, on balance, an annual net import of capital of between
$300,000,000 and $400,000,000 in nearly all recent years, according to
the table summarized on pages 56 and 57 of the 1928 survey. In the
seven years ended with 1928 foreigners seem thereby (on balance)
to have acquired about $1,482,000,000 of United States securities and
reduced United States holdings of foreign securities by about
$526,000,000.
Nature of the Movement.
There is a colossal volume of foreign purchases and sales of securi
ties by foreigners on Wall Street, and the volume of like transactions
by Americans in stock markets abroad is apparently about a third
as great. Canadian Provinces are as closely connected to Wall
Street, by ticker services and brokerage agencies, as some of the
States; and even in Europe speculators (as distinguished from in
vestors) favor United States securities because of the radical fluctua
tions in their prices. The world over, investors buy United States
securities in order to participate in American prosperity; and with
the improving credit of foreign countries they repatriate * foreign
securities previously brought out here. The recent rapid growth of
United States investment trusts has created an important market
for foreign securities in small blocks for diversification.
Once a security, whether American or foreign, is listed both on our
exchange and on one or more foreign exchanges, price leveling starts
almost automatically by arbitrage brokers buying in the cheap mar
ket and selling in the dear market. These transactions occur with
*Transfers of foreign bonds listed on the New York Stock Exchange totaled $559,434,000
in 1928 and $457,903,000 in 1920. In addition are over-the-counter transfers and deal
*: lºſed bonds. These figures include, of course, transfors to Americans as well as
o foreigners.
53
nearly every important fluctuation in the price of the security. At

New York they “average about 25,000 shares a day and sometimes
reach as high as 200,000 shares a day,” according to the Magazine
of Wall Street (July, 1929). This volume of transactions would
probably involve market values of something like $750,000,000 a
year. Most of these transactions are quickly “washed out,” but in
many cases actual deliveries of securities must be made.
The Balancing Efficiency of the Securities Movement.
It looks now as if these security-arbitrage transactions might some
time become the foremost settling item in America's international
accounts, coming before even gold shipments and “changes in inter
national bank accounts.” Every year sees additional foreign listings
on our stock exchanges and additional American listings on foreign
stock exchanges. This development makes possible a growing vol
ume of security arbitrage. A fluctuation of one-fourth of 1 per cent
in foreign exchange rates may cause (or prevent) a great volume of
dealings by security arbitrageurs, whereas so slight a fluctuation may
not move gold: thus current international indebtedness tends to be
reduced or settled by security arbitrage before an impending gold
movement gets started. There is certainly a tendency, even now, for
the directions of security movements and of gold movements to
coincide. This tendency is not revealed, however, from our very
rough figures for recent years, possibly because arbitrage transac
tions are only a part of the total international movement of securities.
The earlier economists thought that international accounts would
always be kept near equilibrium by the effect of gold shipments upon
the prices of commodities. In the United States, where stock
market speculation is so prevalent, incoming gold is likely to become
the basis of credit used to inflate the prices of securities rather than
of commodities. The ensuing rise in stocks would tend to restrict
our exports of them—except to Canada, which seems usually to
participate in our security booms. On the other hand, bond prices
normally decline during a wave of stock speculation, and foreigners
might repatriate an unusual volume of their bonds in such periods.
Absolute Totals Only Vaguely Known.
Brokerage houses usually do not separate foreign orders from
domestic ones in their accounting, and they have no reason to record
precisely how much of the foreign orders are for United States
securities and how much are for foreign securities. A still greater
obstacle is that some of the transactions are on margin and involve
international cash transfers of only part of the value of the securi
ties. Rough estimates are all that can be hoped for.
The annual questionnaire by this division on stocks and bonds
internationally transferred through stock markets requested such
estimates. Replies were received from some of the stock-exchange
firms known to handle most of this foreign business, from numerous
international bankers, and from some of the leading investment
trusts. It requested that the estimates exclude (1) original sub
scriptions to foreign securities publicly offered here, (2) purchases
for sinking-fund and redemption operation, and (3) dealings by
Americans in foreign securities on our market. It requested, further,
caution against having the same transactions reported by both
principal and agent.
54
About a dozen important houses that reported for 1928 refused to

report this year. As a result, the compiled figures are much smaller
this year than in 1928, despite the universal opinion that foreign
activity in our security markets in 1929 had rarely or never been
exceeded. The total of transactions, exactly as reported for 1929,
was only $2,931,000,000, as shown under headings a, b, c, and d,
below. As the total reported for 1928 was $3,804,000,000, including
10 per cent for omissions, and as the true total for 1929 was certainly
larger, all four figures for 1929 are increased in a uniform ratio
(43.3 per cent), so as to raise the total to $4,200,000,000. Some such
arbitrary step is believed necessary to denote the year's increase.
Deduction for Marginal Trading.
For the purpose of a balance of payments, an estimate is necessary
of the deduction for marginal trading by foreigners, notably Cana
dians, on our security markets. (Marginal trading by Americans on
foreign security markets is believed to be unimportant.) To gain
something resembling inductive information on this point, the fol
lowing question was included in the 1929 questionnaire for the first
time: “As a rough guess, about what per cent of the transactions in
American securities were on margin?” A number of the returns,
including those of all out-of-town institutions, carry zero under this
head; the others range from 2 to 75 per cent. It is thought that
something like 50 per cent is the correct figure, and it is further esti
mated that during 1929 the cash margins deposited with brokers
averaged at the high level of 35 per cent. These estimates, if ap
proximately accurate, would justify the deduction of 17.5 per cent
from items c and d, as shown.
Margin requirements in 1928 being estimated at 20 per cent, the
1928 figures for items c and d are revised, respectively, to 1,044 and
1,528, before making the “60–40 adjustments.”
STOCKS AND BONDS INTERNATIONALLY TRANSFERRED THROUGH STOCK MARKETS,
IN 1929
(a) Foreign stocks and bonds bought by Americans from foreigners residing
beyond our political boundaries, $411,840,000. (As raised for omissions, 590;
after 60–40 adjustment, 588.)
(b) Foreign stocks and bonds sold by Americans to foreigners residing beyond
our political boundaries, $307,070,000. (As raised for omissions, 440; after
60–40 adjustment, 442.)
(c) American stocks and bonds bought back by Americans from foreigners
beyond our boundaries, $916,907,000. (As raised for omissions, 1,314; as reduced
by margin trading, 1,084; after 60–40 adjustment, 1,080.)
(d) American stocks and bonds sold by Americans to foreigners beyond our
boundaries, $1,294,765,000. (As raised for omissions, 1,856; as reduced by
margin trading, 1,531; after 60–40 adjustment, 1,537.)
The 60–40 Adjustments for Errors.
Of the “international turnover * (the footings of the two columns
of the balance of payments) over half consists of compiled statistics
on merchandise, gold, silver, public offerings, government transac
tions, etc. About half of the transactions are in the four “ratio ‘’ |
items of the international securities movement, the figures for which
are extremely uncertain. An error of even 10 per cent in any of these
four items for 1929 would range between $44,000,000 and $186,000,000.
Because of the great uncertainty as to the absolute amounts of these
“ratio items,” it is assumed that 60 per cent of the “net discrepancy
OO
due to errors and omissions” of the statement resides in them. The

last step in compiling the balance of payments, therefore, is to alter
the four items in a uniform ratio which will eliminate 60 per cent of
the net discrepancy in the entire statement as first computed.” The
adjusted figures, in rounded millions, are inserted in parentheses
after the totals from the returns.
There was little need for this adjustment in either 1928 or 1929;
for the net discrepancies in those years were very small. The revised
balances of payments for 1926 and 1927, however, had net discrep
ancies of minus 119 and plus 118, respectively. Thus the total range
of error in those years was $237,000,000. Since in both years all
current items had been estimated by uniform methods, it seemed cer
tain that most of the net discrepancies had resulted from errors in
some of the capital items, notably in the four items of the interna
tional securities movement.
General Conclusions from Questionnaire.
Despite the vast margins of error in these figures, it seems safe to
make certain very general observations: (1) The ratios of the four
amounts are presumed to be broadly accurate, and they chance to be
about the same as in 1928. , (2) Foreigners (including Canadians)
dealt more heavily in American securities than Americans dealt in
foreign securities. (3) America acquired, on balance, a rather impor
tant portfolio of foreign securities, “ in small blocks,” despite impor
tant repatriations of such securities. A considerable proportion of
these must have gone to investment trusts, which grew so phenome
nally during 1929. (4) Foreigners acquired, on balance, a portfolio
of American securities about three times as great. (5) The net im
port of capital resulting from all such transactions in 1929, as in
previous years, was very large—perhaps around $311,000,000.
In carrying forward the cumulative estimates of United States
investments abroad by geographic divisions, the (adjusted) increase
during 1929 resulting from items ºr and b of the international securi
ties movement, must be distributed. The following geographic dis.
tribution is adopted: Europe, 90: Latin America, 10: Canada and
New ſoundland. 35; and rest of world. 11.
Notes on International Securities Movements in 1929.
Many Aluºric: ns are bºying American issues in the London m:rket, since
Irofits made ahi oil (1 on appreciation of stocks are not subject to the United
States income tax. Besides there is only one brokerage fee to pay on brief
fliors in London, if closed out within the settlement period. Transfers of funds
resulting from this business are not great, since Iºnglish and American iroke-rs
usually carry joint accounts.--Parron's Weekly, February 11, 1920.
It is estimated that of the 2,800,000 shares of Ford Motor ('ompany ( I.td.)
of England. Oſſered in Lo:ldon about four months ago, about 2.500,000 sl::, res
have gravit: led to this country- at prices up to four times the subscription
rice of £1.--N.'w York T, Intºs, April 7, 1929.
Canadia!, exchanges have a it racted an enormous volume of busil: ºss from
the United States in mining and oil stocks.--Market Letter, June 13, 1929.
I)espite ſhe decline in new foreign capital flotations during 1929, unusually
11uinerous new ſoreign securities Inayo heen listed on the Amsterdam Hourse—
including, in I articular, America11, but also I’rench, German, and I3elgian stocks
and bonds.-Assistant Commercial Attaché Paul S. Guinn, The IIague, July
1(5. 1929.
* “'The justification for this manipulation is not very secure.”—Tho Economist, London,
July 13, 1929. “..A bold stop ; lowever, not without good reasons.”—Wirtschaftdienst,
Berlin. July 12, 1920.
56
A check up made among investment banking houses with international con

nections reveals that London and Berlin have been buying heavily of leading
American securities. One house reports such foreign sales of the stock of a
single American company amounting to over $20,000,000. French buying is
restricted by the heavy tax on the income of foreign securities held in France,
but a substantial volume of American securities is said to be held indirectly
for French account.—Journal of Commerce, August 13, 1929.
Reports from Amsterdam indicate recent purchases of American stocks with
a freedom resembling the occasional bursts of pre-war demand.—New York
Times, August 19, 1929.
Brokers with foreign connections report a particularly heavy volume of
foreign purchases of American railway shares. Many of these shares are held
here in trust; others go abroad by fast boats. One banker predicts that, in the
course of time, foreign holdings in our railways will be as large as before the
war. Our industrials are less popular.—New York Times, August 29, 1929.
One of the favorite “American '' investments of Australian companies has
been the 4% per cent Australian Government loan issue, which has been quoted
at New York around 88. Leading investment brokers here declare that, judg
ing from their own transactions, such purchases may have exceeded £1,000,000
in recent months.-American Trade Commissioner E. C. Squire, Sydney, August
30, 1929.
The Berlin stock oxchange has recently received innportant American orders,
notably from investment trusts. Such orders had been rare ſor a considerable
poriod.—New York Times, Solotember 2, 1929.
It is indicated that the Bank of England has arranged with private British
ſinancial institutions to check the ſlow of investment funds to the United States
* * * to avoid an increase in the bank rate. Whaley-Eaton Service, Sep
tember 7, 1929.
During the first half of 1929 a considerable repatriation of Danish bonds
resulted from weak bond prices in New York and London.—Commercial Attaché
Sorensen, Copenhagen, September 30, 1929.
The stock crash of last week was primarily precipitated by foreign liquidation
of American securities.—Washington Star, October 27, 1929.
The extent of British “distributing " of American securities prior to the
stock-market crash is indicated by the swing of sterling from our gold-import
point to our gold-export point between September 24 and October 24—this
at a season when sterling is normally weak. The sum involved may have run
into the hundreds of millions. This liquidation resulted from the Hatry panic
in England.—Barron's Weekly. I)ecember 9, 1929.
Foreign orders of American securities are said to be coming from every
important European Country.—Wall Street Journal, November 1, 1929.
INTERNATIONAL MOVEMENT OF SHORT-TERM CAPITAL
The department's annual investigation of America's international

banking accounts is regarded as perhaps the most important sec
tion in this survey—not because short-term capital imports have
ever been the largest invisible item in our foreign dealings but be
cause so little was known of them until a year or two ago. The
figures reveal, accurately enough, United States indebtedness on
short-term account and the importance of the United States in inter
national banking. They show the huge amounts, and the distribu
tion, of the world's holdings of dollar exchange. From the same
figures we learn approximately how much short-term capital the
United States money market has imported or exported during a
given year. They show, also, the limited use that United States
bankers make of the outside world when they have an excess of
loanable funds. (See next table.)
United States Short-Term Borrower.
In nearly all recent years the United States has borrowed on
short term, while lending on long term. Phrased otherwise, there
was a short-term “backwash ’’ of our long-term capital exports. In
57
1929 the net inflow was, however, only about 13 millions.” The net
import of short-term capital since January 1, 1922, is estimated at
about 679 millions as seen in the section herein on revised balances
of payments, 1923–1929. Indeed, the sum may have been somewhat
greater; for subtracting this net import figure from the net short
term indebtedness of the United States on December 31, 1929 (1,603
millions), the corresponding indebtedness figure on January 1, 1922,
is found to be 924 millions. This seems like a rather high figure,
despite the “flights of capital into this country in 1921; for the
unusual mercantile credits of the United States to foreigners prior
to the world depression of 1920–21 had not yet been fully liquidated.
At the end of 1929 short-term foreign funds in the United States
totaled 3,087 millions, from which might be deducted the 1,484
millions of American short-term funds abroad.
The increase since 1921 followed such developments as the “flights
of capital * from depreciating currencies, the growth of an American
bill market, the internationalizing of the dollar, and the large in
crease in our “internation turnover.” Central banks have judged
this to be the safest gold-standard market in which to keep their
foreign-exchange holdings. Long-term borrowers from America
often build up by degrees the huge sums of dollar exchange needed to
meet their dividend, sinking-fund, and bond-redemption maturities.
UNITED STATES HEXPORTS AND IMPORTS OF SIIoRT-TERM ('APITAL IN 192:
|
Dec. 31,
Short-term loans outstanding 1ſ | Pººl.
(revised) :
I) UE FiroM ‘‘FOREIGNERS’’l
1 American depºsits with foreigners-----------------------------------------------, 108,588 189,740

Short-term loans to foreigners:
2. Liabilities of American banks for unmatured bills drawn by foreigners
aud accepted by American banks --------------------------...------- 508,822 768,942
3. (Estimated amount of liabilities 3 of American banks for unimatured
bills drawn by A.Intricans to inance American exports and accepted
by Ainerican banks, respectively, 371,907 and 423,826.) -
4. Overdrafts by foreigners 255,373 | 202, 348

5. Other short-term loans and advances--------- ---- -- 318, 762 285, 460
6. American short-term funds “put out” (in foreign money markets) | 24,077 | 37, 357
Total short-term funds due ſrom abroad----------------------------------- 1,305,622 1,483,847
I) UE TO I () I. FI(; NERS l
7. Foreign deposits with Americans------------------------------------------------ 1, 580,481 1,652, 858

Short-term borrowings from foreigners:
8. Outstanding voluino of unmatured bills drawn by American banks
and their customers, accepted abroad and discounted there (as es-
| I
-
timated) ---------------------------------------------------------- I 93,356 72,238
9. (Outstanding volume of Almerican guarantees of accept:ances executed
by foreign banks for the account of AImerican importers, respectively,
52,653 and 33,799.) -
1 The foreign branch of an American bank is a foreigner; an American branch of a foreign bank is an
American.
2 Regarded as an offset to foreign deposits in American banks. - - -
* These rºpresent American loans to American exporters. The credit extended to foreigners is regarded
as mercantile credit (relating to invoice terms) rather than as international banking credit.
: Regarded tºs an offset to American d"posits in foreign banks. -
* Like item 3, these loans relate to mercantile credit rather than to banking credit.
20. There was a net outflow of 58 millions, if items 3 and 9 in the table were included in
the totals. Those items are assumed to be included in the estimated “Changed year-end
lag in invoice terms ”—-a good assumption in 1928 and an extremely poor assumption in
1929, judging from comparisons of the two figures.
58
UNITED STATES ExPORTS AND IMPORTS OF SHORT-TERM CAPITAL IN 1929–Continued:
Dec. 31
Short-term loans outstanding i 1928 Pººl
(revised)
DUE TO FOREIGNERS–continued
7. Foreign deposits with Americans—Continued.

Short-term borrowings from ſoreigners–Continued.
10. Overdraſts by American banks--------------------------------------- 36,297 24, 550.
11. Other short-term borrowings------------------------------------------ 10, S55 294
Foreign funds “put out” (in the American market):
12. Into American acceptances-------------------------------------------- 564, 601 891, 132
13. Into brokers’ loans. ------- - 332, 888 270. 627
14. Into Treasury certificates-- 166, 319 61. 827
15. Into other short-term loans - - 12, 176 8,817
16. Undiscounted foreign-drawn acceptances:
Held for collection by American banks "------------------------------------ 99, 247 104,938
Total short-term funds due to foreignors 2.896. 220 | 3.087. 281

Net short-term indebtedness to foreigners on banking account-- 1, 590, 598 || 1,603, 434
^ A corrective entry offsetting item 2 of the staternent,

Source: Finance and investment division, U. S. L)epartment of Commerce, based on returns from 191
leading international banking houses located in American cities, including the 12 reserve banks, all large
#. bankers, investment trusts, and the principal foreign banking agencies here. No figures were raised
or Omissions.
In the preceding table the year's net inflow resulted from an increase
of 191 millions in foreign funds in this country, against an increase
in American funds abroad of 178 millions. Either figure is, however,
rather meaningless. Item 16 should be substracted from item 2;
and the remainder might be subtracted from item 7. Ilikewise
item 8 might be subtracted from item 1. Other alterations in
the arrangement of the figures might be desirable for special
purposes.
Results Based on Revised Questionnaire.
Our bulletin for 1927 reported the collapse of the questionnaire
used in 1926 and 1927. Such questions as it carried were too gen
eral: there were too few lines for items and too few explanatory
notes: and it did not catch acceptance transactions at all.
The revised questionnaire, now used was based primarily upon
interviews with perhaps 20 bank accountants and bank economists
in New York. Thereafter there were numerous conferences and
a heavy correspondence with Federal reserve officials, particularly
upon the effect of certain international acceptance transactions
upon international indebtedness. The assistance of E. L. Smead,
chief of the division of bank operations of the Federal Reserve
Board, in framing the questionnaire is specially to be acknowledged.
Again, this year, Dr. W. Randolph Burgess, assistant reserve agent
at New York, directed much of the follow-up work in obtaining
returns. Copies of the revised form of questionnaire are available
upon request.
This year’s returns are more accurate than last year's, notably
as regards foreign funds in brokers’ loans. A year ago several
important foreign banking agencies had reported as “foreign
deposits in American banks.” all funds received from their head
offices, although most of the funds had been “put out” into
brokers’ loans; the error did not, however, alter the net indebtedness
of the United States as shown in the table. Several lesser errors
59
as of the end of 1928 were admitted by the reporting banks and

corrected this year. When a bank's figure for any item as of the
end of 1928, as reported this year, differed by as much as $500,000,
an explanation was requested; invariably the discrepancy was found
to be the result of errors in last year’s report. The list of reporting
banks has been expanded and is now so complete that omission
estimates seem unnecessary. Reporting institutions in New York
City now number exactly 100. There are 191 reporting institutions
in all, as compared with 188 last year; but there was fully a score
of mergers during the year, usually of banks already on our list.
These various changes necessitated a revision of the figures as of
December 31, 1928.
Record High Foreign Holdings of Acceptances.
At the end of 1929 foreign short-term funds “put out ’’ into
bankers’ acceptances (chiefly at New York) reached the stupendous
total of $891,132,000. Most of these holdings of dollar acceptances
by foreign central banks and others are shown in the weekly state
ment of the Federal reserve banks, as " contingent liability on bills
purchased for foreign correspondents.” At the end of 1929 that
item was $547,962,000. Most of the remaining foreign-held accept
ances were acquired through about eight large New York banks,
each of which recorded an increase during 1929.
Bankers’ acceptances outstanding in the United States at the end
of 1929 totaled $1,732,463,000, a record high for all time, according
to the American Acceptance Council. Foreign banks had thus
bought up, as short-term investments, 51.4 per cent of that record
total.
Increase in Foreign Deposits Here.
The colossal sum of foreign deposits in this country is no longer
news. While theoretically foreigners might withdraw them almost
overnight, they can not in fact do so. . Many of these deposits are
part of the cash reserves of the approximately 30 central banks that
legally count foreign-exchange holdings as cash reserves. At the
end of December the I3ank of France alone had the equivalent of a
flat billion dollars thus held in various foreign countries. Many
of the deposits are required by individual long-term foreign bor
rowers in preparing to make payments to American holders of their
securities on account of dividends, sinking funds, or bond redemp
tions. Other deposits are required by thousands of banks abroad.
each of which must stand ready to sell dollar exchange to its cus
tomers, in an aggregate volume of about a billion a month. The high
degree of immobility in these deposits by foreigners is suggested by
the fact that during 19:19 they actually increased by $72.010,000—in
a period when foreigners became so currently indebteil to us, on bal
ance (because of our reduced long-term lending), that they were coin
pelled to ship us $175,000,000 net of gold.
Press Notes on Short-Term ('apital Movements in 1929.
Ordinarily the January reaction in moi,ey rates alid the consequent recall
of forei, ºn money brillº a decided rise in sterling.- -New York Times, Jailuary
2, 1929.
The further increase in bankers' acceptances * * * frºm 11 º'S to 5% lºor
cent * * * is a be: rish factor o:l ('xchange, as dollar accept:lli(“s are
powerfully attractive to European short-term funds at current rates. French
francs have moved lower, due to transfers of funds from Paris to other cen
60
ters, including New York. Italian lire have been decidedly weaker, and this
condition is attributed largely to * * * continued firmness of money rates
in New York. Relatively there is a money stringency in Holland created
very largely through the transfer of funds from Amsterdam to other markets,
which has been going on for some time.—Commercial and Financial Chronicle,
February 16, 1929.
Probably about a billion dollars is now loaned by foreign banks or bankers
to brokers in New York City on Stock Exchange collateral.—New York Times,
February 20, 1929. (The statistics of the Department of Commerce show this
estimate to be exaggerated.)
Foreign funds have gone out of the New York market in substantial amounts
since the advance in the discount rate of the Bank of England a month ago.—
New York Times, March 6, 1929.
There were evidences yesterday that foreign interests were placing substan
tial amounts of funds at the disposal of the call loan market here.—New York
Times, April 4, 1929.
Misgivings during the recent “currency crisis” frightened depositors in
German savings banks into buying dollars.-New York Times, July 15, 1929.
Yesterday's buying of American bills for foreign account was thought to
have been one particular case of a large shifting of funds from London, Paris,
and Berlin, due to uncertainty as to the fate of the Young plan.—Journal of
Commerce, August 13, 1929.
It is estimated that deposits of French funds in New York banks at present
amount to $900,000,000.-Guaranty Survey, August 26, 1929.
High money rates in this country in all branchos of the money market are
acting as a magnet to draw funds from all parts of the world.—Commercial
and Financial Chronicle, August 31, 1929.
France is replacing England and America in providing Short credit for
Germany.—New York Times, September 2, 1929.
Dollar exchange continues to decline, owing to the very large withdrawal of
European balances from America. Estimates of this recall of European capital
from Wall Street range from $50,000,000 up to $100,000,000.-New York Times,
October 29, 1929.
Fleeing from our easing money market and deflated stock prices, European
money is rushing home.—New York Times, October 27, 1929.
While foreign funds ſlowed from New York in substantial quantities during
the stock market collapse here, * * * there has been a considerable return
flow of foreign funds to New York for investment. Current call money rates of
6 per cent are still sufficiently high to warrant placing foreign funds on call
in New York.-Barron's, November 11, 1929.
In the first half year * * * there was a shift from holdings of govern
ments to holdings of bankers' acceptances on the part of foreign buyers in this
market * * *. In November the Federal reserve system holdings of bills
declined rather than increased because of the large outside (foreign) demand
for acceptances.—Review of Economic Statistics, February, 1930.
There is a natural tendency for this country [England] to overlend on short
term account to such countries as the United States and Germany.—The Statist,
December 14, 1929.
Wall Street was filled with ideas of a vast impour of outside and foreign
money (for brokers' loans), forgetful apparently that * * * if outside and
foreign money was pouring into Wall Street, * * * New York deposits
should show a corresponding increase. Actually this increase was suprisingly
small. (Carl Snyder, chief statistician, Federal Reserve Bank of New York.)—
Financial Chronicle, January 4, 1930.
SILVER AND GOLD EXPORTS AND IMPORTS

Silver.
From the modern American standpoint, silver is a small but staple

merchandise export. In occasional years, as in 1922 and 1923, our
silver imports have exceeded our silver exports; but the average
annual excess of silver exports during three recent 5-year periods,
1911–1915, 1916–1920, and 1921–1925, were $23,000,000, $79,000,000,
and $10,000,000, respectively. -
61
During 1929 our total exports and imports of silver were, respec
tively, $83,407,000 and $63,940,000. Of the imports, about $51,000,000
came from Mexico and Peru; and of our exports, about $71,000,000
went to China and India. Most of our silver trade in recent years
has passed through these channels; but since India adopted its “gold
bullion ” standard in 1926–27, China's portion of our total exports
has risen and India's has fallen.
General Observations on International Gold Movements.
The following is an excerpt from last year's survey:
The official statistics of our imports aud exports of gold and silver may be
considered as closely accurate. Both these metals, as well as the ores from
which they are produced, are on the free list. Some estimating is involved
as to the actual gold and Silver contents of Such ores in our foreign trade as
contain two or more metals, but there is apparently no incentive to inaccuracy
in this estinuating. I’ossibly in past years some gold was smuggled into the
United States, to avoid all records of infringements of gold export embargoes
in foreign countries; that such a practice is an important item now is doubted.
Tourists may carry out a small quantity of gold, in the aggregate ; but they
are much more likely to take Americall paper currency, for various reasons.
Some of the gold imported is received on deposit, or for conversion into
foreign exchange and some of our gold exports are withdrawals of deposit.
Particularly in past years, whenever a foreign central bank found that its gold
stocks exceeded the minimum reserve against its issue and deposits, it was
likely to deposit the excess gold in an American bank. Indeed, in certain
countries the central and other banks are permitted to carry part of their
minimum gold reserves in foreign exchange.” Such a deposit draws interest :
whereas if the gold is held in the foreign banks, it is an unproductive asset.
Our country being most ſirmly on the gold basis, foreign banks run no risk
here of being confronted by a gold embargo, should they have need to with
draw their gold. This consideration seems to Outweigh the fact that our
interest rates are usually lower than those of most gold-standard Countries.
With this strictly deposit business going on, and with the present immense oper
ations in international credit, both short-term and long-term, it is evident that
neither do international gold shipments reflect exclusively the settlement of
international accounts, nor are they so important as formerly in the settlement
of such accounts.
That gold movements can not be predicted (except when it is known that
foreign countries are about to collect gold for their vaults) should be accepted
as an axiom. Gold is ordinarily shipped to settle the balance of international
indebtedness. A prediction of this balance would require the compilation of a
balance of international payments for a future poriod; and even for a past
period several capital items can not be estimated within $100,000,000.
A feature of American gold movements is the regular importation
of “gold ore and base bullion,” chiefly from Canada, Mexico, Peru,
and Ecuador. In the four years ended with 1929, these importations
averaged about $18,000,000 a year; in the preceding four years they
averaged about $22,000,000. This commodity movement is included
in the total figures of American gold imports as usually published.
but separate figures on it are obtainable monthly from the Department
of Commerce.
The “Redistribution ” of American Gold.
Between 1915 and 1923, inclusive, United States net imports of
gold totaled $2,155,000,000. Nearly a billion of this inſlow came
during 1915 and 1916 and about $900,000,000 of it came in 1921 and
1922. During this 9-year period there was a net inflow in every year
but 1919.
* For a list of 24 such central banks, see I’ederal Reserve Bulletin, August, 1928, p. 563.
62
Since January 1, 1924, there have been several violent reversals

of the gold movement. Of special note was the mighty net outflow
of $577,000,000 during the 11 months ended with July 31, 1928. . Dur
ing that outflow there was much discussion of the “redistribution of
American gold * to nations resuming the gold standard. During
the 5-year period ended with 1929, however, there was no such redis
tribution. Although total United States exports and imports of
gold totaled $2,649,000,000 during the five years, the two sides of the
account were within 13 millions of exact equilibrium. Throughout
the period, dollar exchange (our international currency) was subject
to numerous and violent fluctuations.
American Gold Movements in 1929.
Gold movements do not fit neatly into calendar-year periods. The
past year opened in a period of strong inflow, which had be
slowly in August, 1928, and had gained momentum. The inflow
continued far into October, 1929. During those 15 months the
United States regained $307,000,000 (net) of the $577,000,000 (net)
of gold exported during the previous 11 months.
The principal reason for the inflow was the reduction in United
States underwriting of foreign bonds, which resulted chiefly from the
sharp rise in money rates here as stock-market speculation proceeded.
The flotation of foreign-government bonds during 1929 was less than
one-fourth the previous year's volume. Furthermore, the rise of
money rates here, especially on brokers’ loans, brought some foreign
short-term capital into the country; and at the same time foreigners
(notably Canadians) were sending funds here for stock-market
speculation. During the nine months ended with September, United
States net export of capital seems to have been about $470,000,000 *
less than during the like period of 1928. Despite the reduced credit
to countries abroad, our favorable trade balance actually increased
slightly (by $6,000,000). It was the sharp reversal of the gold
movement, principally, that settled the accounts.
In November and December, 1929, gold again moved outward at
a most unusual rate. Net gold exports in November and December
were, respectively, 23 and 64 millions. Stock-market developments
were responsible. Well before the first crash in security values,
which occurred on October 23, British holders of American securities
began heavy selling, in connection with the Hatry crisis in England.
This selling was sufficiently heavy to swing sterling exchange from
our gold-import point to our gold-export point between September
24 and October 24, and it is supposable that continental holders
of “Yanks " also sold heavily and withdrew the proceeds. Like
wise, a certain amount of foreign funds in brokers’ loans at New York
are believed to have been called or released and remitted abroad.
The outward gold movement ended with December; in January,
1930, there was again an inflow, though a negligible one.
CHANGES IN EARMARKED GOLD
The following is an excerpt from last year's survey:

The central banks of almost all countries keep on hand a certain quantity
of gold, in the form of coin and bullion, in their own vaults, but may in some
-* S, tº Tho -\ Ilnalist, Nov. 22.
63
cases hold gold abroad. The laws under which these banks operate very
generally prescribe certain minimum ratios of gold holdings to the notes of the
bank or to its notes and deposits. Where these laws permit gold held abroad,
as well as gold in vault, to be counted as reserve, the bank need not actually
import the metal in order to increase its gold reserve. Thus a bank holding
foreign exchange—in the form of (leposits in foreign banks, acceptances pay
able in foreign currencies, etc.—may convert this asset into gold in that market
or some other, and instead of having the gold shipped may hold it abroad,
for a longer or shorter period, under earmark—that is, in the custody of its
foreign correspondent but segregated and marked in such manner as to indicate
that the identical coins or bars earmarked are the loank's property and al
together subject to its disposal. It is not the practice of the Federal reserve
Banks to count as reserve any gold held abroad, but when they have come into
possession of gold abroad, at a time when they held ample gold at home,
they have sometimes had it earmarked there, largely in order to save the
expense of shipping to the United States gold that might later require re.
shipment.
Before 1927 little was publicly known of the amounts of gold involved in
earmarking operations. The Federal Reserve Board now regularly issues
statistics on the subject: so does the Federal Reserve Bank of New York.
The accompanying table summarizes by years the earmarking operations of
the Federal reserve banks for the past nine years. From the figures given
entries are made directly in the table of international payments.
INCREASE OR DECREASE (—) IN AMERICAN GOLD STOCK THROUGH CHANGES IN

GOLD UNDER EARMARK FOR FOREIGN ACCOUNT
|
921 1922 1923 1924 1925 1926 1927 1928 1929
January --~~~ —810 —6,043 19,487 || 5,500 | —65.0

593 –1, 366 |–11,000 3, 180 2,900 -------
–2, 452 –6,825 –22,988 –1, 502 || 35,800 || 7.5
–558 14,850 |--------- —1,000 || 45,700 48.6
1,000 12, 725 ||--------- –95, 000 –26, 500 16.1
2,000 5,075 —580 ' —500 || 30, 100 || —7.5
–2, 583 –3, 901 4,000 184 60, 900 —22.0
—7,984 8,725 | 19, 200 –2, 501 5,900 | –1.0
—13, 229 | 001 || –2,400 —9,000 || –1,200 —6.6
—17,000 2,870 4 —25,001 1, 200 —4.5
—500 2,000 | –7, 498 – 40,000 ||—25,000 1.0
–1,500 –2006 i, its –$500 –15% —23.0
–42,213 32.24 –26,207–160,153 |110,000 || –55.4
Source: Federal Reserve Bullotin.
Any net increase in gold earmarked for foreign account in United

States banks during a given year must be counted in our balance of
payments for that year as an invisible export of gold—for which
Americans have received payment in some form from foreigners,
usually through a reduction of foreign deposits in United States
banks. Conversely, when gold abroad is earmarked for American
account, there is an invisible import of gold into the United States,
for which Americans have surrendered cash values to foreigners.
Gold released from earmark here is usually exported; when this is
the case it must be counted as a deduction from the visible exports
of the period in which it is released, since it was previously paid for.
The table pertains only to changes of “gold under earmark for
foreign account ’’ in the United States. The per contra transactions,
gold abroad earmarked for American account, have been rare. There
was no gold so earmarked at the end of any recent calendar year.
64
MOVEMENT OF AMERICAN PAPER CURRENCY
United States currency held abroad might be regarded as a capital

item, since it is practically a noninterest-bearing investment of for
eigners in American values. After the armistice there was a con
siderable investment in United States currency by residents of coun
tries with rapidly depreciating exchange, who were willing to forego
interest for the sake of security; but this movement seems to have
come to an end, in most countries, in the early part of 1924. When
so used, shipments of currency resemble shipments of stocks and
honds. As elsewhere stated, however, a change in the value of our
foreign investments made in previous years does not enter our bal
ance of payments, except in so far as the change alters the money
yield of those investments during a particular year. Accordingly,
our present interest in the international movement of United States
currency arises from the fact that it is one of the two “pure cash ’’
items, the other being gold.
Statistics from Selected American Banks.
These official surveys since 1923 have contained figures on the item,
based on replies to monthly questionnaires sent by the Federal re
serve bank at New York to about 15 large banks in the city, known
to be interested in currency shipments. The reserve bank concluded
that during 1923 paper-currency shipments to Europe by these banks
exceeded receipts by about $25,000,000; that during 1924 the move
ment was reversed, with a total excess of receipts # $49,000,000, dis
regarding shipments to and from Cuba through the reserve bank at
Atlanta, which nearly balanced. These New York banks, together
with the Atlanta Reserve Bank, showed excesses of currency receipts
of $62,000,000 in 1925, $41,000,000 in 1926, $63,000,000 in 1927,
$60,000,000 in 1928, and $49,000,000 in 1929.
Available Statistics Merely Suggestive.
No sound estimate is ordinarily possible from the statistics of the
15 or 16 selected banks in the United States. Other banks in various
parts of the United States, particularly along the Canadian fron
tier, receive United States currency from abroad, and may ship it
abroad. Each immigrant alien admitted to the United States is
required to “show ’’ a minimum equivalent of $25 (usually in dollar
bills), and Canadian and other foreign tourists bring unknown sums
with them. Most American tourists and returning immigrants
finance themselves abroad partly with dollar paper currency, our
immigrants mail it back to the “old country,” and our Navy and
merchant marine distribute it throughout the world. An excess of
currency receipts by the selected American banks is to be expected,
because foreign banks gather up the bills distributed by American
tourists and others—to ship them back, in bulk, to American banks.
The statistics have merit, nevertheless. While they show some
what heavier excesses of receipts in 1925 and 1927 (gold-export years)
than in 1926 (a gold-import year), they show heavier receipts after
the American tourist season. They show, also, comparatively light
receipts from Belgium, France, and Italy during the sharp deprecia
tion of the “three franc exchanges,” between February and July,
1926; and, similarly, they reflect the absorption of dollar paper money
by Russia in recent years. The excess of outgoing shipments prior to
early 1924 indicated the magnitude of the “ currency investments “
65
during that period. Furthermore, the extremely high receipts in

1924 and 1925 probably resulted from the partial “thawing out ’’ of
those investments—particularly in Germany after the adoption of
the Dawes plan—as the receipts from Germany indicate. There may
have been a further general thawing out in 1926, 1927, and 1928;
but no one can say whether it was more or less important than the
further absorption by Russia, Cuba, and Canada; so no estimates
of the net movement were made. None is made for 1929.
Countries Which Still Absorb Dollar Currency.
Early in 1925 the Canadian dollar recovered parity after the long
strain of war financing. Since that recovery Canadians have had
less incentive to return to us United States currency left in Canada
by American tourists and others, and our tourists’ expenditures have
increased rapidly. Many Canadian localities have become so well
acquainted with United States currency (accepted from American
tourists usually at par) that a large volume of it remains in circula
tion. Americans, on the other hand, have become but slightly
acquainted with Canadian currency, which is usually accepted at
discounts and is quickly returned to Canada by United States banks.
Throughout 1929 Canadian exchange was at a low discount, dropping
to a maximum of about 2% per cent in the autumn. This undoubt
edly forced back to this country many millions of paper money.
United States currency is legal tender in Cuba, Panama, and the
Dominican Republic, and it is generally accepted at par throughout
most of the West Indies and Central America. There is a special
tendency for it to remain in circulation in Lithuania, whose national
coin is equal to one-tenth of a dollar.
Commercial Attaché Frederick Todd at Habana reports that the
total of United States paper currency in Cuba at the end of 1929
was not far from $109,000.000, or $13,000,000 less than one year
earlier. The amount thus held in Cuba is “the most direct gage
of the business turnover in Cuba. * * * When business slackens
and American currency accumulates in the bank vaults, the foreign
exchange experts of the bank invariably transfer everything they
can spare to New York, in order to loan it out there.”
Russia has become a “sink” for American paper currency, for
reasons well understood. In the last three calendar years Russia has
received $12,010,000 of dollar currency shipments from the 15 New
York banks and returned less than $230,000 by this channel. Prob
ably Russia has retained most of the dollar currency received from
its emigrants to America or in other direct ways and has absorbed
additional sums obtained indirectly from Europe.
Comparative Balances of Payments, 1923–1929.
The finance and investment division has issued a survey of the bal
ance of payments to cover each calendar year beginning with 1923.
Each year the scope of the survey has been extended, and the
methods of estimating and classifying the various items have been
improved; but these improvements were made at the cost of com
parability. In compiling the table below uniform methods were
used so as to make the surveys more comparable. Those for 1928
and 1929 are strictly comparable, and those for the preceding five
years are comparable one with another: but such further improve
66
ments in method as were adopted in the present survey were not

applied to years prior to 1928.
The condensed table is derived from itemized statements contain
ing more than five times as many entries. . Such itemized statements
were originally prepared in the summer of 1928 by the present com
piler in connection with the nation-wide investigation of recent
economic changes in the United States, but important revisions have
been made since then.
BALANCES OF INTERNATIONAL I’AYMENTS OF THE UNITED STATES, CALENDAR YEARS

1923–1929; A CONDENSATION OF REVISED ESTIMATES
| 1929
Class of transactions (gross or net) 1923 | 1924 1925 1926 1927 1928 (unre
i i | vised)
- -
—-- -
comMoDITIES (ADJUSTED) | |
Exports-------------------------------------- #3; #$$. i ; ; #9; #9; ; ; ; 5,490
Imports-------------------------------------- 4, 162 3,952 4,544 || 4,766 || 4, 508 || 4,483 4,756
Balance of trade (adjusted)------------- +206 +882" +633 +278 +583 i +850 +734
MISCELLANEOUS INVISIBI.E ITEMS
|
---------------------------------------, -83 -64 –84 –95 –66 –80 -115
Expenditures by American tourists:
Canada and Mexican frontier-- | —131 –159 —185 —201 || –231 || –288 –322
Overseas---------------------------------- —313 —374 —400 —422 || —465 —516 –517
Expenditures by foreign tourists in United
States-------------------------------------- | +104 || +107 || +112 || +148 || +163 +163 +180
Ocean-borne passenger traffic 1--------------- +60 +53 +63 +69 +89 +89 +-94
Interest on American private funds abroad
(long and short term)----------------------- +594 | +635 | +689 +740 | +800 +893 +976
Interest on foreign funds in United States
(long and short term)----------------------- –180 || –102 | –229 —208 —281 —359 –414
War-debt receipts º: _j +92 +23 +26 | +35 +46 +50 +62
War-debt receipts (interest) --------- - +167 +160 +160 +160 | +160 +157 +145
Other governmental transactions (net)- -- –66 —53 —61 –49 –29 —57 –92
Immigrant remittances (net) ------------ ---| –229 —229 —235 —218 —206 || –225 –223
Charitable and missionary contributions------ +70 –55 −50 —46 –49 –51 -49
Other items (net) *--------------------------- | +57 +0s; +74 | +74 +74 | +24 +25
Total, commodity and miscellaneous ! t
(net)--------------------------------- +* +& His tº +ssl tºol +s.

NEW PRIVATE LOANs, INVESTMENTS,
DEPOSITS AND |
I | | -
Net increase in American long-term invest- | | |

ments abroad (par value).------------------- –258 —869, -872 —808 || –972 –1,318 –808
Deduct bond discounts and underwriters' | |
commissions on above---------------------- | +48 +125 +119 i +121 | +110 | +122 | +26
l l i
Net cash payments for above----------- –210 —744 –753 —687 —853 |–1, 196 –782
Net increase in long-term foreign investinents :
in United
Change States-
in net de +240 +11 | +103 |; +147
- l
| +488 i
+158 t
+396
foreigners----------------------------------- +3 | +216 i –01 +359 -------- —226, +13

Net capital movement (long and short | | -
term) +33 || -517: -321 -1s -695 -934, -373

OTEIER BALANCING iteyſ S . | | i |
Gold shipped or earmarked (net) - ----------- –295 —216 +102 | –72 +154 +272 —120
Shipments of American paper money (net) - - - +50 | —26 –30 | -------- !-------- !-------- --------
Add for net discrepancy due to inaccurate i -
figures”------------------------------------- +4 –40 | +36| +48 –47; +12 +9

1 Largely a deduction from American tourist oxpenditures overseas.
* Includes insurance, motion-picture royalties, cable charges, Canadian electric power, press subscrip
tions, patents and copyrights, and advertising.
* Each of these net discrepancies was two and one-half times as large in the preliminary revision. Thus
there was a change from – 119 in 1926 to +118 in the next year—a total range of error of 237. Such a range
of error being hardly admissible in the “current” items, it was presumed that most of the original net
discrepancies, in those two years at least, resulted from errors in the four “capital” items known to be
least reliable. Therefore, the revised estimates of those four items were all altered according to uniform
ratios which would eliminate 60 per cent of each year's preliminary net discrepancy. This is a partial
tº ance of the British method of deriving capital-movement estimates from estimates of the current
eIns.
67
Dominance of Merchandise and Credit Transactions.

The largest group of invisible items is, of course, new loans, investments,
and deposits. Moreover, the yield of previous credit transactions is the largest
invisible export. When it is seen that in absolute amounts commodity trans
actions constitute about half of the international turnover, one realizes the
extent to which commodity and credit transactions dominate our balances of
payments. Small wonder that economists so often base themselves on a “two
cylinder" balance of payments consisting of only these two large items.
The importance of the invisible items appears when it is realized that it is
the balance, not the total, of an item or group of items which influences the
movement of other items. The balance of trade is sometimes less than net
tourist expenditures or than net yield of investments. In two of the years
even war-debt receipts exceeded the net export of private capital. It is the
magnitude of these various invisibles, on balance, which upsets popular con
ceptions of our dealings with foreigners.
The “Big Three * Variants.
In recent years the balance of the “miscellaneous invisible items,”
taken as a group, has been relatively stable. The reason for this
stability is that, while most of the items in the group have shown a
definite trend upward or downward, the trends have been mutually
offsetting to a great extent—a result perhaps best ascribed to coin
cidence. From the table on pages 56 and 57 of last year's survey it
is found that (1) the average annual change of the net balance of
this group was only 72 millions during the five years ended with
1928 and that (2) the range in the annual fluctuations was between
40 and 112.
The remaining three groups of items in American balances of pay
ments—pertaining to merchandise, capital, and gold—are the im
portant variables. Net capital exports have had an average net
annual change of 375 millions during the five years and a maximum
range of 990 millions (between 1924 and 1927). The trade balance
has had an average net annual change of 374 millions and a maxi
mum range of 963 millions (between 1924 and 1928). Gold move
ments, including earmarking operations, have had an average net
annual change of 183 millions and a maximum range of 492 millions
(between 1924 and 1926).
It follows that the net export of capital from the United States
during any of the five years covered could have been computed rather
closely about six weeks after the close of the year, when the December
figures of merchandise and gold movements became available. In
deed, in none of the last four years covered, would the error have
been as much as 60 millions, when estimated “lag in merchandise
accounts’’ is considered. The preliminary estimate (including that
lag) of net capital exports for 1929 would have been 416 millions;
the final estimate, as noted in the table, was 373 millions. This
elliptical method, being based on net changes, is of value only for
comparisons, however, unless the net export of capital of the pre
vious year was computed with scientific care.
PURPOSE AND METHODS OF BALANCES OF PAYMENTS
In form our international balance of payments is a sort of conjectural cash

account of the America's foreign transactions. The credit column is supposed to
contain all cash claims by Americans against foreigners actually honored during
the year, while the debit column contains the corresponding cash claims by for
eigners against Americans. Most of these cash claims offset and are canceled by
68
ſoreign-exchange operations; the uncanceled balance is settled by international

shipments of gold and currency. Thus, if one should set out to show by a table
just why we imported or exported so much gold during a given year, he would
end with an American balance of international payments. Since gold ship
ments normally result from wide fluctuations in foreign exchange, one would
end with the same kind of statement by investigating dollar-exchange
fluctuations.
Definitions.
.1 balance of payments is a tabulation of all known or estimal cd transactions
bel reen thro areas which tend to influence the movement of gold or other
accepted currency between the two areas during a given period.
In content, however, the itemized account so constructed would be much more
than an analysis of the gold movement, as the following alternative definition
shows:
A balance of international payments is a statement of the compiled or esti
ma/cd amounts of all the invisible and visible erports and imports of a country
during a given period, so arranged as to show their comparative size, their
total (the international turno rer), their influence upon the international gold
movement, the “detractive " and “promotive “ relationships between them, and
the volume and character of the nation's forcign-carchange transactions.”
Our Balance-of-Payments Area.
In the present survey the geographic limits of the United States are coter
minous with those used in the official statistics of our foreign trade in merchan
(lise. They include continental United States, Alaska, II:lwaii, and Porto Rico.
They exclude the IPhilippines, the Panama Canal Zone. Guam, Samoa, and
Virgin Islands: these are counted as foreign countries.
Visible Versus Invisible Trade.
An invisible export is whatever thing or “satisfaction " a country parts with,
or whatever service it renders, in any international transaction which tends to
move an equivalent amount of money into the country within a given period,
but which is not recorded in the customs statistics of that country. An invisible
import can be defined accuratoly only in similar terms.
There are only three visible items of American foreign trade—merchandise,
silver, and gold. Many countries count silver as merchandise, and hence have
only two visible items.
The number of invisible items of American foreign trade is variously com
puted. There are no less than 20 by any ordinary mothod of counting, and it
is possible to count well over 50 of them. For example, “United States Govern
mont international receipts and expenditures “ constitute one invisible item;
or two invisible items, a credit and a debit : or about a dozen different invisible
items like “Recoipts from Panama Canal.” “I)ishursements by Veterans'
Hureau,” (at C’.
The amounts of several of the invisible items are known as accurately as
ſhe amounts of the visible items. The amounts of other invisibles are broad
approximations expressed in precise figures partly for identification. Fine
exactitudo is impossible oven in the statistics of values of merchandise exports
and imports.
Why Credits Are in the Left-Hand Column.
Many persons inquire why the credit column is at the left of the debit
column. The real reason is one of tradition; the Britons who first compiled
balances of payments arranged the columns that Way—perhaps because British
bookkeepers in compiling ordinary balance sheets have always reversed the
columns, putting the credit (asset) column left of the debit (liability) column.
About 30 other countries have adopted the practice in their balances of
payments.
Two reasºns exist for continuing this tradition: (1) The United States
Government statistics of foreign trade show exports before imports; (2) a
* One falls short of the meaning of our balance of payments if he fails to realizo “that
it is largely a review of .Americall national lifº, in record of the Nation's international
social activities, a reſlection of many national habits and customs, and in some degree a
uneasure of our intornational Lolicit s and politics.” (Go orge A. Anderson in the American
Bank r.s Journal. Septem; “r, 1927. )
“The reckoning of any country's balance of payments in its dealings with the rest of
the world is perhaps the most important single computation in the entire field of its inter
national economic relations.” (Horlort IIoover.)
69
balance of payments is a cashbook showing receipts and payments of foreign

exchange; in an ordinary mercantile cashbook receipts are entered on the
left side.
The Accounting Viewpoint.

As in a trial balance in ordinary bookkeeping, every item of balance of
payments is a balancing item. Omit One item and the two columns will be out
of equilibrium by the amount of that item, assuming that there are no errors
or omissions. Gold shipments are usually spoken of as the balancing item ; but
the United Kingdom counts them as ordinary exports and imports and estab
lishes equilibrium in its balance of payments with the “balance remaining for
OverSeas investment.”
Gold shipments are the settling item in international transactions, but they
are not necessarily the balancing entry in a balance of payments. For one
thing, they are not carried forward into the next year's statement. We could
not begin our balance of payments with “gold stock of the United States
on January 1” and establish equilibrium in the statement by entering in the
opposite column “gold stock of the United States on I)ecember 31 ''; for Our
gold stock is altered by domestic production and by domestic consumption in
the fine arts.
In a balance of payments gold shipments count only as shipments of highly
salable merchandise. Changes in international banking accounts—the reser
voirs of foreign exchange—are, more properly, the balancing entries. This very
useful point of view is illustrated by the following imaginary balance of pay
ments, which assumes that there is no discrepancy due to errors and omissions.
IMAGINARY HALANCE OF PAYMENTS : EQUILIBRIUM Asst. MED TO BE ESTABLISHED

AND ALL ITEMS SETTLED BY CHIANGIES IN INTERNATIONAL BANKING ACCOUNTS
Dollar exchange relinquished to us by for- Mmm Dollar exchange acquired by foreigners Millions
eigners and for what purposes; and/or Of °, and how they got it; and/or foreign ex; o
foreign
we got exchange
it acquired by us and how dollars
lollars || change
pºssrelinquished by us and for what | dollars t
------- - - - - | ! - - - - - - -——
i
Cºreloits - DEBITS |
-
|
Merchandise, favorable balance of trade-, -, 548 Excess of foreign short-term funds in the
Interest on American investments abroad- 720 United States over Alinerican short
Miscellaneous items----------------------- 69 torm funds abroad (brought forward). --" 1,000
Ercess of foreign short-term funds in the Freight----------------------------- - 33
United States 0ter American short-term Tourist expenditures - - 528
funds abroad (balancing entry carried : Immigrant remittances--------- - 206
forward) ------------------------------- 1, 100 | Charities and foreign Inissions-- -| 5
i Loans to foreignors, long-term-- - 569
| Gold imports...-------------------------. 96
2,437 - 2,437
| Excess of foreign short-terin funds in the
United States over American short
term funds abroad (brought forward)--- 1, 100
1 If one regards gold as the international currency (and net gold shipments as the balancing entry), this
tem would be entered at 100 as “Net change in international bank accounts”; and it would not be carried
orward into the next period.
-
Barter and Purchasing Power.

A balance of payments has been shown to be a survey of foreign-exchange
transactions, an invostigation of gold movements, a cashbook of (lealings with
foreigners, and an analysis of the financing of our ſoreign trade or of the
effect of our foreign loans. At least two other view points are useful : (1)
Economists of the last century generally regarded international trade as
barter. In this light, a balance of payments becomes two lists of goods and
services oxchanged in barter. (2) In terms of the “law of detractions and
promotions,” a balance of payments itemizes international transfers of pur
chasing power. The debit footing shows the extent to which the United States
contributed to the purchasing power of the outside world; the credit footing
shows the extent to which our dealings with foreigners have increased our
purchasing power.
70
Detractive and Promotive Influences.

Alternative statements of the “law of detractions and promotions” follows:*
A. “When the outside world takes more of a particular export (visible or in
visible), it can acquire the foreign exchange with which to make settlement
only by importing less of some other visible or invisible and/or by inducing the
exporting area to import more of some visible or invisible.”
B. “The increasing of a particular item of export (visible or invisible) tends
to reduce all other items of export and to increase all imports; the increas
ing of a particular item of import tends to reduce all other imports (visible
or invisible) and increase all exports; the reducing of a particular item of ex
port tends to increase all other items of export and to reduce all imports;
d the reducing of a particular item of import tends to increase all other
liports and reduce all exports.”
War-debt receipts, which are (or rather involve) an invisible export, afford
an interesting, important, and fairly new illustration of the law. If this invisi
ble export reduces the purchasing power of the taxpayers of the debtor nations
and thereby reduces our export of merchandise, there is a detractive influence
by one export item upon a second export item (merchandise). If the large saw
ings to American taxpayers * resulting from these Treasury receipts be devoted
either to increasing our merchandise imports or our invisible imports (our
loans to foreigners, tourist expenditures, immigrant remittances, foreign chari
ties, etc.), there is a promotive influence by one export item upon several im
port items. These two influences are exerted by every balance-of-payments
item.
The effect of tariffs (or of other restrictions of our international trade,
travel, or loans)—whether imposed by this Government or by a foreign gov
ernment—can be analyzed by this simple formula: Whatever tends to diminish
an item in one column of the balance of payments tends to promote every other
item in that column and to detract from every item in the other column.
It is often said that imports (visible and invisible) must be paid for with
exports (visible and invisible). This is true of totals; but because of the
detractive influences, it is untrue of an individual item. One item of import
may be increased by importing less of something else. To detract is to substi
tute. All credit items in the balance of payments are rival commodities (like
radios and phonographs in domestic trade), and so are all the debit items.
Again, the credit items, as a group, create what economists call a “composite
demand " for the debit items; and vice versa.
The detractive and Iromotive influences may operate on any or all of four
planes: (1) Through the invisible export and import of “dollar checking
accounts” and of “foreign checking accounts.” Net changes in year-end bal
ances of international banking accounts (net export or import of short-term
capital) often run into the hundreds of millions and are, therefore, one of the
largest invisible items). (2) Through substitutions and backwashes on the
purchasing-power plane. Sums invested in foreign securities might have been
invested in plant and equipment in this country, thereby involving at least some
additional imports of merchandise, and those sums might have been spent partly
on imported luxuries or on foreign tours; these examples illustrate the sub
stitution of purchasing power. The foreign borrowers, being endowed with
more purchasing power, buy additional American goods, services, and securities;
this illustrates the backwash of purchasing power. (3) Through the immedi
ately altered foreign-exchange rates. Any American export whatsoever tends to
raise dollar exchange and to lower foreign exchange, thus tending to detract
from all other American exports and to promote all imports. (4) Through
º interests rates and price levels. These influences can not be traced
r1erly.
It is useful to designate the influences on the first two plans as direct and
those on the last two plans as indirect. The foregoing war-debts examples
illustrate only direct influences.
Exceptions to the Law.
There are some interesting partial exceptions to the law: (1) To the extent
that gold shipments affect price levels, they run counter to the rule; gold
* See The Annalist, May 25, 1928, and Barron's Weekly, Sept. 9, 1929.
* The United States Treasury is required by law to devote the war-debt receipts to
retiring Treasury obligations. Beyond reasonable doubt, part of the principal sums thus
§ ºy es.
American holders of such obligations has actually been reinvested in foreign
71
exports, for example, tend to lower prices here and to raise prices abroad, thus
tending to reduce all imports (visible and invisible) and to increase all ex
ports.” Gold viewed as a commodity, however, is not an exception. (2)
Loans to foreigners, an invisible import, tend to raise interest rates at home
and to lower them abroad. This tends to promote (not to detract from) “ yield
of foreigners' investments and deposits in the United States,” which is also
an import. Loans to foreigners also detract from (not promote) “ yield of
previous American investments and deposits abroad,” an invisible export. If
a billion of foreign loans raises interest rates at home by one point, it would
now promote “yield of foreign deposits in the United States " by something
like $25,000,000 a year. As this volume of security imports would promote
“ yield of new American investments abroad" by about $60,000,000 a year,
the law would be valid despite the exception; besides, the law operates power
fully in the case of foreign loans on both the purchasing-power and foreign
exchange planes. (3) We import foreign securities. If foreigners use the
proceeds to build factories which produce goods previously imported from us,
our visible import detracts from (fails to promote, in this one respect) an
export. (4) An increase in American merchandise exports might increase the
yield of the American merchant marine, an invisible export.
Does Trade Follow the Loan? (Detractions and Promotions.)
It is sometimes asserted as an axiom that trade follows the loan—that our
new investments abroad, being dollar credits, can not be usesd by foreigners
unless they buy American merchandise. Those who hold this statement to be
an axiom virtually state as follows: “Our purchases of foreign securities are
an invisible import which exerts no “detractive inſluence whatsoever upon
any of the other imports (visible or invisible) and which “promote our mer
chandise exports without ‘promoting ' any of our other visible or invisible
exports.” Thus stated, the “axiom " is seen to be faulty.
Even the trade balance often fails to follow the loan. I)uring the period
when foreign countries were investing most heavily in the United States, say
from 1876 to 1910, the United States had strongly favorable balances in trade.
Again, our favorable balances of trade in 1923 and 1926 were, respectively,
$375,000,000 and $378,000,000; whereas foreign securities publicly offered in
the United States were $791,000,000 greater in 1926 than in 1923.
Passive Versus Causal Character of Items.
Certain writors on foreign trade regard our new loans abroad as a funding
of debts created by our excess of merchandise exports—as certainly was the
case during the World War. That is, they regard our merchandise sales to
foreigners as purely causal and our new loans abroad as purely passive; they
disregard the fact that, in normal times, foreign loans depend upon comparative
interest rates hero and abroad and that these interest rates may be little affected
by exports and imports. Other writers, regarding the foreign loans as purely
causal. declare that they can not be granted, nor served, nor redeemed except
in merchandise: So, to these persons, the merchandise movement seems wholly
passive. These writers would deny than our merchandise-oxporting activities
can be as basic, primal, and causal as our security-importing activities.
Both classes of writers disregard the very numerous minor balance-of-payment
items (in the aggregate vastly more important than the merchandise balance),
nearly every one of which is likewise partly passive and partly causal. Almost
every item affects, and is affected by, every other item. Even gold shipments
may be causal, since they may be made on a “commodity basis" as well as a
“straight exchange basis.”
Certain individual transactions with foreigners constituto a virtually irre
ducible minimum of the balance-of-payments item to which they relate. These
transactions are purely causal,” since they can not be eliminated and their very
existence causes “promotive " or “detractive " adjustments in other balance
* The “classical " economists believed that gold shipments, with their influence on com
modity price levels, were practically the sole factor in creating long-term equilibrium.
This influence being calmly regarded as a minor exception to the “law of detractions and
promotions,” the law is seen to be a radical departure.
* Gold moves on a “commodity basis " when it is bought, regardless of exchange rates,
for gold reserves in currency reconstruction ; when it is sent abroad by a central bank for
deposit, in order to make it a productive asset ; when it is shipped long after it is ear
marked ; or when gold ore is imported, or oxported, for smelting.
* The war-debt payments may be regarded as purely causal. Freight payments are
passively related to the commodity movement.
72
of-payments items. Thus, a few persons would travel abroad whatever the dis
couragements, certain luxury articles will be imported whatever the price, etc.
Other individual transactions with foreigners are more passive; economists
might call them “marginal.” Thus, a luxury article is imported by one Amer
ican because his oil investments in Mexico prospered.
“Pairing-Off’ Fallacies.
It is often said that our favorable trade balance is financed by our net export
of capital or that German reparations are financed by American loans. Such
“pairings-off" are sometimes useful for comparing the magnitude of items on
opposite sides of a balance of payments; but rarely, if ever, do they show a
cause-and-effect relationship. In certain years our trade balance does tally
closely with our net export of capital; in others, it tallies far more closely with
|
-
sº-
tourist
exactly expenditures. In 1928
“paid for " our net the net yield
tourist of our foreign
expenditures. investments
In 1926, almost
net immigrant
remittances almost exactly equaled war-debt receipts. Coincidences of this
kind are numerous, even among the larger items.
Classification of Items.
Some writers speak of “current " as distinguished from “capital " items in
a balance of payments. The capital items consist of (1) all items in the Section
of the statement labeled “Movement of private long-term capital,” (2) the
principal sums received as war-debt payments, and (3) the net changes in
international banking accounts. All other items are Current.
That the items might be classified as mercantile, financial, and personal is
suggested by Dr. Roland P. Faulkner, chief statistician of the National Indus
trial Conference Board.”
The classification herein used is commodity trade, miscellaneous invisible
items, movement of private long-term capital, and other balancing items.
History of Balances of Payments.
The term “balance of payments" was probably first used in 1819, in the
report of a parliamentary committee which had studied a proposal to bring
British currency back to the gold standard after the Napoleonic Wars. The
first formal balance of payments of the United States, by Sir George Paish,
covering the year ended June 30, 1910, is available in the report of the National
Monetary Commission; but several partial investigations of American inter
national payments were made between 1893 and 1910. In 1919 the Harvard
School of Iłusiness Administration published still more complete balances of
payments for varying periods of years from 1789 to 1918, in an investigation of
American balances of trade; and it later published annual balances of pay
ments for 1919, 1920, and 1921. Our first official balance of payments, covering
the calendar year 1922, was published under the direction of the Secretary
of ('ommerce (Herbert Hoover); and one has appeared annually since.” The
League of Nations now publishes the annual balances of payments of about
25 countries. The foregoing facts are excerpted from The International Ac
counts, by Cleona Lewis, published in 1927 by the MacMillan Co.
New Field for Investigation.
Interaroa payments constitute almost a pioneer field. Balances of payments
between the United States and the United Kingdom for 1927 and 1928 will be
found in Commerce Reports for August 19, 1929. Similar surveys of payments
between the United States and each important foreign country, either for a
single year or for a series of years, would be valuable contributions. The eco
nomic relations between parent countries and thoir possessions or colonies might
well be analyzed in the same way. Much progress might be made if universities
Would accept such surveys as seniinar reports or as loostgraduate theses.
* See The Conference IRoard Iłullotin for Oct. 15, 1920.

* Iłalances of payments for 1919, 1920, and the ſirst nine months of 1921 were published
in the Federal IReserve 13ulletin for November, 1921. Heginning with 1922 these studies
have been issued annually by the Bureau of Foreign and Domestic Commerce in its Trade
Information, Bullet in series, as follows: 1922, No. 144; 1923, No. 215 ; 1924, No. 340:
• 1925. No. 399; 1926, No. 503 ; 1927, No. 552; 1928, No. 625. While the oarlier numbers
are out of print, copies, may be consulted at State libraries, many public and university
libraries, or at the district and cooperative offices of the bureau.
- ...)
( ..)
SUVIMARY OF NEW REFINEMENTS IN 1929
1. There was an unusually large premium on dollar exchange for the year as
a whole. An estimate of the resulting economy on our merchandise imports
was included for the first time.
2. A large error in the previous estimate of the lag in merchandise payments
in 1922 was pointed out.
3. The “freight bill of the Nation,” as computed by Virgil Miller of the
United States Shipping Iłoard, covers the calendar year ſor the first time.
Previously, fiscal-year figures had to be adjusted to the calendar year.
4. Inductive data on the average expenditures of American motorists in
Canada on 24-hour permits were obtained for the first time, by questionnaire.
Important corrections resulted.
5. Arrangements were concluded to obtain from the Bureau of Immigration
actual statistics for 1930 of American oversea tourists, by cabin classes, by
ocean lanes, and by flags of the carrier.
6. The results of the biennial questionnaire to commercial attachés and con
suls on immigrant remittances and tourist expenditures cover a longer list of
Countries.
7. A computation was made, for the first time, of the economies made by
foreign governments in making war-debt payments to the United States Treas
ury in the form of United States bonds.
8. The survey of short-term capital movements includes the figures of a great
many more international banking institutions than ever before ; and important
corrections were made in the previous year's reports by certain of these insti
tutions, notably as regards brokers' loans.
9. The “law of detractions and promotions” is formulated more clearly.
10. A balance of payments between America and France was published sep
arately.
11. A final revision of the amounts of foreign securities publicly offered in
the United States since 1913 is included herein.
12. Prokerage commissions and transfer taxes paid by foreigners on American
stock exchanges are estimated for the first time.
13. The earnings of American stockbrokers from foreign customers is an
important invisible “ discovered " this year.
14. The questionnaire on securities internationally transferred through stock
exchanges requested for the first time information as to the extent of marginal
trading. Such trading, share for share, involves much smaller sums of dollar
exchange transactions.
15. The questionnaire on bond-redemption and sinking-fund payments re
quested trustees and paying agents to estimate the Sums paid to foreign holders.
QUESTIONNAIRE TO BALANCE-OF-PAYMENTS READERS
Ea.planation.—If you have returned from overseas since September, 1929,
please fill out the blanks below and mail this sheet to the Finance and Invest
ment Division, United States Department of Commerce, Washington D. C.
1. On your recent trip overseas, by which steamship class did you depart?
Third class––––––––––––––. Monoclass––––––––––––––- “Luxury" class---------
Tourist class––––––––––––– Cabin class - Cruise ----
Student class-------...----- One-Cabin boat---------- Other-------------------

Second class–––––––––––––. First class––––––––––––––
2. In this answer, please report your total expenditures on the trip, for all
purposes whatsoever (except for passport fee and for railway fare, hotels,
etc., in the United States). Be sure to include in this grand total visa fees paid
here or abroad, steamship passages, tips, and purchases made abroad, etc.
(a) If you traveled entirely alone, what was your own total expenditure?
(b) If you traveled in a close family unit of two or more persons, and if it
is easier for you to compute the average carpenditure per person in the group,
please report that. Count infants as persons in your group. Do not count
your socretaries or servants as members of your family group ; and do not
include in your expenditure what you paid either for their services or for their
6xpenses. Average per person : $
3. How many persons are included in this average?
4. When you reentered the United States did you pay any duty?
5. If you did pay duty, what was the total declaration,1 including the $100
exemption?
6. If the above was a joint declaration, how many persons did it cover?
Siºned? ------------------------------------
(Signature optional)
. . " Amounts so declared are included in the published statistics of American “visible"
imports of merchandise ; and the whole purpose of this questionnaire is to ascertain the
average “invisible '' imports by Americans traveling overseas.
(74)
O

WillIAM L. COOPER, Director
AUSTRALIAN
RAISIN AND CURRANT
INDUSTRY AND TRADE
REGEIVED
JUL - 5 1930
O. S. U. Litº PARY
HF
O5
285
.699 UNITED STATES
WASHINGTON : 1930

FOREWORD
Climatic conditions in Australia were early recognized as being

suitable for the production of dried fruits, and as early as 1901 some
thing over 2,000 tons of vine fruits were produced there. Production
increased slowly until the postwar high prices and the settlement of
returned soldiers on irrigated areas with governmental aid gave a
great impetus to the industry. Prior to 1912 imports of currants and
raisins into Australia exceeded the exports, and in 1913 the exports of
1,190 short tons were only 10 per cent of the production. . From the
1926–27 crop exports amounted to over 45,000 tons. Those of
1929–30, following the severe frost of the preceding season, were
slightly smaller, but the upward trend still persists. - -
Most of the Australian exports go to the United Kingdom, where

they receive a preference of about $35 per ton. This preference, with
other factors, has increased the Australian share in the raisin import
trade of the United Kingdom from 32.2 per cent in 1924 to 44.5 per
cent in 1929. During 1929 27 per cent of the raisins exported from
the United States went to the United Kingdom, where they were in
direct competition with those from Australia.
Most of the Australian fruits, both vine and tree, are produced on
irrigated lands along the Murray River. The author of this report
recently went through this district and made a comprehensive study
of the economic factors affecting the production of vine fruits, although
many of the facts presented are equally applicable to the production
of tree fruits, in which there is an increasing interest in Australia.
This publication should prove of value to persons interested in the
progress of Australia as a competitor of *. United States in the
world markets for dried fruits.
MAY, 1930.
(II)
AUSTRALIAN RAISIN AND CURRANT INDUSTRY
By E. C. Squire, American Trade Commissioner, Sydney, Australia
Australia has made rapid strides during recent years as an exporter

of raisins and currants. A gradual increase in production was taking
place before the World War, but high prices of these products during
and for a few years after the war are the major causes of the great
increase. The natural increase in production caused by the high
prices has been greatly encouraged by the State governments of Aus
tralia which, influenced by high prices, made very large additions to
areas under cultivation, by patriotic developmental schemes of
settling returned soldiers on the land. Since the prices declined
drastically in 1923 and have shown no tendency to regain early post
war levels, the State governments and the industry have been taking
stock of the situation, particularly during the past year or two.
RELATIONSHIP TO IRRIGATION DEVELOPMENT
Practically all raisin and currant production of commercial impor

tance in Australia, and production of the larger part of fruits for
canning, is on irrigated lands; hence, the relationship of such pro
duction to irrigation will be of interest.
EARLY Iriri GATION PROJECTS
The ſirst irrigation of importance was launched by two Americans

(the Chaſlee brothers), who made investigations along the Murray
River about 1885 and settled upon the present site of Mildura as
suitable. They were able to make arrangements with the State of
Victoria, and their project covered several thousand acres. A good
start was made, but some diſliculties arose, and during the financial
crisis about 1894 the Victorian government took over the areas. How
ever, the great respect in which these founders is still held is shown
by the fact that recently a monument was erected in Mildura to one
of the brothers (W. B. Chaffee). Soon other irrigation projects grew,
particularly in Victoria, and one other well-known American (Mr.
Elwood Mead, who acted for a number of years as commissioner of
state rivers and water supply), played an important part in shaping
their development. At present nearly one-third of Victoria is under
some sort of irrigation, but by far the greater part of this irrigation
is to provide water for stock and for similar purposes.
PRESENT IRRIGATION AREAS
A complete report on irrigation in Australia is outside the scope of

this report, and a lengthy description of all projects, with details of
capital expenditure, profits, and losses, would merely confuse one
interested only in fruit.
In the irrigation areas now producing fruit, water is sufficiently
plentiful and well controlled, so that the possibility of a water shortage
affecting production even in a dry year is very remote. For instance,
in the Murrumbidgee area of New South Wales, present developments
can employ only about 40 per cent of water available for irrigation.
(1)
2
In the second place the percentage of fruit areas to total irrigated

areas is comparatively small and fruit areas could be greatly enlarged
at the expense of other industries if fruit production were to become
comparatively profitable; as a matter of fact, difficulty has arisen in
finding suitable crops of any sort that will profitably employ all the
land where water for irrigation has been made available.
The cost of water for irrigation, along with other costs of produc
tion, is of importance; and general information regarding such rates
will be mentioned later. In some cases rates would have to be mate
rially increased if irrigation projects were to meet fully all capital
and other charges, but even under present financial conditions this is
not likely to be rigidly put into effect on existing works, since such
projects are regarded as a general and long-term investment.
In Victoria approximately 15,800,000 acres are artificially supplied
with water, but only 471,695 acres were under irrigated culture in
1929. Of this latter figure only 71,043 acres were under “vineyards,
orchards, and gardens,” or about 15 per cent of the land under irri
gated culture, and of such land in fruit and gardens only 41,565 were
planted to vines in 1928–29, and most of these plantings were on two
areas directly contiguous to the Murray River.
Production in South Australia from Renmark to Waikerie comprises
practically all the production of raisins and currants, and conditions
are similar to Victoria. Production is dependent on water from the
Murray River. Only about 784 short tons of raisins and currants
are produced in South Australia on nonirrigated land and about 1,456
short tons in Western Australia. This total of approximately 2,240
tons is almost negligible compared with production under irrigation.
The irrigation districts at Curlwaa and Coomealla, although in
New South Wales, are also contiguous to the Murray, just across the
river from the Mildura area, and are irrigated like practically all the
others —by pumping. At Coomealla particularly there are great
opportunities of expanding production of dried fruits; there are about
35,000 acres, of which only about 3,000 have been developed owin
to a slump in fruit prices. In 1925–26 there were 452 acres ºš
to grapes for drying and 61 acres not yet bearing. In 1927–28 there
were 497 acres bearing and 690 acres not yet bearing. It is said there
have been some further small plantings, but areas are still compara
tively small.
One other very important irrigation project—the Murrumbidgee
area—should be mentioned. However, the trend of dried vine fruit
production there does not warrant any detailed description of the
irrigation project. Water ſlow is controlled on the Murrumbidgee by
a large dam, the Burrinjuck. Some 250 miles below, water is diverted
to the Murrumbidgee irrigation area. About 140,000 acres are now
developed. Not more than 40 per cent of available water is used,
and the dam provides storage for several years' water supply. Water
rates are very low, namely, $1.22 per acre-foot to fruit growers. How
ever, climatic and soil conditions do not seem particularly well suited
to raisin growing, and although areas so planted are small there is a
decided tendency toward reduction. This is the center in New
South Wales, however, for wine production.
3
MURRUMBIDGEE ACREAGES PLANTED To DRYING GRAPEs AND CURRANTs
Group 1925–26 1927–28
Bearing vines----------------------------------------------------------------------- 1,009 1, 547

Young, not bearing 1, 349 447
Total------------------------------------------------------------------------- 2,358 1,994
From the foregoing brief sketch it will be seen that by far the bulk
of raisin and currant production is directly along the Murray River.
The large part is irrigated by water drawn directly from the Murray
itself, though some areas are watered by the smaller tributaries. For
practical purposes it may be said that raisin and currant production
depends on water from the Murray River. Most of the water is
lifted by centrifugal pumps, in many cases to a height of considerably
over 100 feet.
WATER RATES IN IRRIGATEID AREAS
The charge for water at all irrigation settlements is not the same.
The rates are as follows:
Renmark (South Australia) ------- $13.37 per acre, plus $2.43 for additional
watering.
South Australia Irrigation Com- $14.58 per acre, plus $3.65 for additional
mission. watering.
Merbein (Victoria) - - - - - - - - - - - - - - $5.83 per acre foot (minimum 2% acre-feet—
$14.58), plus domestic and stock rate.
Redcliffs (Victoria) -- - - - - - - - - - - - - $17 per acre for vines over 3 years old.
Mildura Trust------------------ $15.80 per acre for 3 waterings; $3.65 per
acre for additional watering.
Nyah (Victoria) ----------------- $12.15 per acre, plus domestic and stock rate.
Woorinen (Victoria) ------------- $3.65 per acre (gravitation), plus domestic
and stock rate.
It is not possible to fix an amount applicable to all settlements;

but, with the exception of Woorinen and Mildura, the majority of
growers pay $17 per acre. Shire rates throughout average $2.43 per
8. Cre.
PROPOSED DEVELOPMENT
All irrigation projects on the Murray could be considered one huge

irrigation scheme. In fact, this has been recognized in Australia,
and an agreement has been entered into by the Commonwealth Gov.
ernment and the three interested States—Victoria, South Australia,
and New South Wales—called “The River Murray water agreement.”
A very ambitious scheme of development was agreed upon, with a
construction program extending to 1932 and possibly longer.
The original plan called for a series of 15 weirs to be erected in the
Murray River to regulate flow and provide storage, and a huge dam,
the Hume Reservoir, with 2,000,000 acre-feet capacity, to be erected
at the upper part of the river, . The increase in irrigated areas will be
apparent from the fact that this scheme, when completed, would give
sufficient water for the doubling of the whole areas now devoted to
production under irrigation in Australia. These new areas are of
course contiguous to the Murray River itself. Up to June 30, 1927,
total expenditure on irrigation and reclamation works on the Murray
and its tributaries totaled over $160,380,000. Up to the present the
total is, of course, considerably larger. Financial considerations and
4
the outlook for marketing produce grown has caused some paring
down of this project—partly as a result of a suggestion made by the
British economic mission. As mentioned elsewhere, there has been
considerable difficulty in finding profitable use for all new land coming
under irrigation. Consequently, it is now planned to complete the
Hume Reservoir to store only 100,000 acre-feet for the present; as a
matter of fact, storage of 80,000 acre-feet has been completed.
Despite this slowing down, marked progress has been made. From
the mouth of the river upward eight locks and weirs have been com
pleted, including No. 11 at Mildura. Some of the other locks are
well under way.
To the dried-fruit industry this means that there is little likelihood
of any water shortage in the future, though the industry has passed
through several critical years in the past—the last one in 1915, when
the Murray was nearly dry and the water became so salty that it
ruined many orchards.
GOVERNMENT AID FOR DEVELOPMENT PROJECTS
During the earlier years of dried-fruit production developmental

stimulus came largely from the industry itself and from its promoters.
However, it very soon began to receive developmental assistance
from the various State governments, and that is the key to the rapid
growth. A recent change in the governmental attitude may presage
a halt to such expansions.
The Australian States and the Federal Government have for many
years made great efforts to cause a rapid development of the country.
Projects that would bring about closer settlements were favorably
regarded, since the staple industries of sheep and cattle raising
appeared to deter the formation of small holdings. When the possi
bilities of increasing the population greatly throughout the Murray
Basin by irrigation was appreciated, the States not only bought up
large areas for irrigation and developed the projects by the use of
loan money, but also assisted financially those who wished to settle
on such areas. This assistance in many cases amounted to the larger
part of the financial requirements of such settlers and the granting
of favorable terms of repayment. The fruit industry appeared
promising and a rapid expansion was consequently stimulated.
Production of dried fruits reached 10,080 short tons by 1910, and by
1913 exports began. IIowever, it was the soldier settlements that
accounted for the huge increase beginning in 1919. As the soldiers
returned from the war a national policy was formed of settling many
of them on the land by the aid of loan money. World prices for
raisins and currants were soaring during and just after the war; and,
among other projects, a large number of soldiers were established in
the died-fruit industry. The coming into bearing of such soldier
settlements as at Red Cliffs, Victoria, accounts for much of the increase
from a production of 16,800 tons in 1919 to 78,400 tons in 1929.
Such settlements were developed by the States during the years of
highest costs as well as highest fruit prices, and it has now become
necessary to revalue soldier holdings, with consequent losses to the
States. While most of such soldiers have either left or adjusted them
selves to what to most of them was a completely new industry, yet
º revaluations and cutting of losses will undoubtedly have to be
Iſla Cle.
5
A number of important factors have developed which are influencing

the State and Federal Governments with regard to closer settlement
in general, and the canned and dried fruit industries in particular.
To measure the effects that these may have on further production, the
factors are briefly sketched below.
Continued announcements of expenditures and losses on irrigation
works and settlements have caused the press and the public to adopt a
very critical attitude, and the British economic mission about 18
months ago suggested that expenditures on such projects might be
viewed more discriminatingly. Thus, with world prices declining
rapidly on many crops suitable for production in irrigation areas, it
became difficult to find profitable use for such land.
The dried and canned fruit industries particularly suffered. The
market and migration commission (an economic branch of the Federal
Government) made an economic survey of those industries and with
regard to dried fruits recommended, among other things, “that
Governments definitely discourage further plantings until additional
markets are assured.”
In addition to these factors, Australia has been and is experiencing
a period of financial stringency which is particularly affecting State
and Federal governmental finance, and loan moneys for any sort of
developmental purpose are being drastically reduced.
The foregoing factors are bound to have effects, and so far as fruit
developments are concerned, the irrigation commissioner in Victoria
recently stated that he was refusing to give any financial assistance
whatsoever to settlers who wished to take up new areas for fruit pro
duction, and further added that such settlers were very unlikely to
make a venture without such assistance. It is understood that the
official attitude in New South Wales is about the same. Reference
has already been made to drastic curtailment of proposed plantings
of raisin grapes at Coomealla, New South Wales.
The trade itself is taking a similar attitude by discouraging the
extension of existing plantings.
PRODUCTION OF RAISINS AND CURRANTS
The expanding production of raisins and currants in Australia is

shown in the following figures:
Raisins and currants: Short tons Raisins and currants—Con...: Short tons
1901-2----------------- 2, 286 1908-9----------------- 7, 579
1902-3----------------- 3, 119 1909–10 - - - - - - - - - - - - - - - - 9, 732
1903-4----------------- 4, 726 1910–11---------------- 10, 268
1904-5- - --------------- 3, 230 1911–12---------------- 13, 153
1905-6----------------- 4, 247 1912–13---------------- 14,082
1906-7----------------- 7, 859 1913–14---------------- 15, 330
1907-8----------------- 6,966
[The years 1901 to 1907 are exclusive of New South Wales, of which no records are available. , Queensland
and Western Australian statistics are also unavailable, but these would be almost Inegligible.]
6
AUSTRALIAN PRODUCTION of RAIsINS AND CURRANTs, 1914–15 to 1929–30

[In short tons]
Year Raisins Currants Year Raisins | Currants

----------- - - -
|
1914-15----------------------- 8,393 3, 119 | 1919-20-----------------------
|| 15,725 8,042
1915–16--- 13, 723 7,874 || 1920–21– 9,417 7,646
1916–17_ 10, 313 6, 759 || 1921–22– - 15, 121 9,079
1917–18– 8,473 6, 135 || 1922–23– -| 20,876 11,754
1918–19--- 9, 542 7,429 || 1923–24----------------------- 33,062 17,040
H= |
Raisins - Raisins
Year —T- Currants, Year Currants
Sultanas' Lexias . Sultanas | Lexias
- |
—— — — –
1924–25------------- 22,868 5, 719 13,097 || 1927–28 5,843 8,035
1925–26- 21,712 3,371 14, 151 1928–29 7,494 21, 160
1926–27- 43,074 5,941 12,810, 1929–30 1 5,600 1 20, 160
| !
1 Estimated.
AUSTRALIAN RAISIN AND CURRANT PRODUCTION, BY STATES, 1924–25 To 1928–29

[In short tons]
|
State 1924–25 | 1925–26 1926–27 1927–28 || 1928–29
- -- - -
|
SULT.A.N.As
Victoria--------------------------------------------- 16, 992 16,416 33, 285 18, 300 37,310

South Australia.-- 5,507 4, 944 8,676 2, 143 11, 159
New South Wales.-- .2 225 981 1,169 2,849
Western Australia----------------------------------- 76 127 132 183
Total------------------------------------------ 22.808 21,712 43,074 21,795 51,520

CURRANTS
Victoria--------------------------------------------- 7,004 7,763 3,932 10, 298

South Australia- - * 5,865 3,618 2, 433 8,818
New South Wales.-- 171 132 205 1575
Western Australia----------------------------------. 1, 111 1,297 1,465 ! 1,469
Total------------------------------------------ | 13,097 14, 151 12,810 8,035 21, 160
2,036 4,400 3,951 5,496

1,076 1, 180 964 1,318
41 25 250 276
218 336 678 404
Total------------------------------------------ 5,719 3,371 5,941 5,843 7,494

Ali, varieties i
Victoria--------------------------------------------- 26,605 25,456 45,448 26, 183 53, 104

South Australia- - - - 13,401 11,885 13,474 5, 540 21, 295
New South Wales.---- - 493 437 1, 138 1,624 3,700
Western Australia----------------------------------- 1, 185 1,456 1,765 2,326 2,075
Total------------------------------------------ 41,684 | 30, 234 61, 825 35,673 80,174
It will appear from the foregoing table that Victoria is by far the
most important factor in the production of raisins and currants,
particularly sultanas. South Australia is second, and in the produc
tion of currants is nearly as important as Victoria. In South Aus
tralia there is a closer relation between the wine and the dried vine
fruits than in other States, and this accounts in large measure for the
great variations of production, depending on the relative prices that
are obtainable. It is commonly said that in South Australia raisins
and currants are produced on relatively poor soils, also that pro
7
ducers commonly have other crops besides raisins; consequently,

continued low prices for raisins and currants are likely to prove a
greater deterrent to production than in many other areas.
Production in Western Australia is relatively unimportant.
New South Wales, though of relatively small importance in the
industry, would probably become a heavy producer if prices for
raisins and currants were more favorable. The State government
has opened up large irrigation areas that are suitable for dried fruits,
but only relatively small plantings have been made.
In view of the importance of Victoria in the dried-fruit industry, a
more detailed analysis of production in that State appears warranted.
Details of production in Victoria are as follows:
AREA UNDER AND PRODUCE of VINEs IN VICTORIA, BY Counties, 1928–29, AND
ToTALs For FIVE PRECEDING SEASONs
Area planted Dried produce
T TITTTT Total
Principal shires Gºy - Not grapes |Wine made Raisins
º bear- gathered CurrantS
ing Lexias | Sultanas
l
|
Acres | Acres | Short tons; Gallons | Short tom8| Short tom8| Short toms
17 373 6 , 457
25 607 1 580
48 134 6 : 209
1,671 || 25,097 1,719 192, 597
442 4, 8 619 | ,799 |
54 288 5 | 497
74 446 22 963
84 281 22 570
12 69 5 25
16 324 109 398
7 64 5 i 113
102 || 4,608 || 178 5, 178
28 453 18 391
166 | 1,057 161 1,804 |
|
2,746 || 38,689 || 2,876 1230,581 21, 942, 701 5, 290 37,886 10,634
2,774 37,974 3,014 127, 443 i 2,353,890 4, 237 18, 292 4,094
2,832 37,340 3,272, 199,764 2,346,314 4, 216 32,614 7, 586
2,876 || 36,091 4,621 126,217 1,657,274 3,025 16, 659 6,928
2,999 || 31,723 10,744 116,971 | 1, 268,765 3,958 16, 593 5,877
1 Of this total the estimated quantity used for making wine, etc., was 15,449 short tons; for making raisins
and currants 210,756 tons; and for table consumption, 4,376 short tons.
2 Includes also 368,161 gallons manufactured in Melbourne for distillation.
It will appear from the preceding table that over 90 per cent of
Victorian grape production is turned into dried products.
It will also be seen that the Mildura area produces 88 per cent of all
dried grapes produced in Victoria, and about 85 per cent of all sul
tanas produced, which are of course included in the total. It will also
be apparent that the Mildura area (or shire) produces somewhat over
60 per cent of the total Australian sultana crop, and around 60 per
cent of all dried-grape products.
In view of the great importance of Mildura (Shire), an analysis of
production and acreage for the past five years is given.
The average planting of lexias was about 33 per cent as large as
sultana plantings in 1925, but had declined to about 20 per cent in
1929. Plantings of currants are slightly higher than of lexias.
116020–30—2
8 -
AcREAGE AND PRODUCTION of SULTANAS IN MILDURA AREA, 1925–1929

l
Item 1925 1926 1927 1928 1929
|
Mildura Irrigation, Trust (40-year-old settlement): |
Próduction, dried-------------------- short tons-- 6, 731 4,693 9, 150 3,928 9,834
Area producing---------------------------- acres-- 5,994 6,056 6, 150 6,045 6,048
Per acre yield------------------------short tons-- 1.1 0.77 1.5 0.65 1.6
Meribein (20-year-old settlement): i
Production--------------------------short tons-- 6, 115 4,336 8,736 4,426 8,669

Arca producing-- - 3,803 3,850 3,900 3,895 3,895
Per acre yield------------------------ 1.6 1.1 2.2 1 2.2
Red Cliffs (9-year-old areas): i
Production short tons-- 1,288 4,726 11,458 6,810 12,757

Area producing - - - -aCr(*S.-- 1,000 3,500 7,000 6,912 6,912
Per acre yield---- 10rt tonS.-- 1.28 1.3 1.6 0.98
Total: -
Production-------------------short tons. 14, 134 13,755 29,344 15, 164 31,260

Producing area- - - - ---------------acres--| 10,797 13,406 17,050 16, 852 16,855
Per acre yield----...---------short tons 1-- 1.3 1.0 1.7 0.90 1.85
1 Average yield (5 years) for "whole area, 1.376 short tons per acre.
It will be seen from the foregoing table that the only important
increase in acreage in the Mildura area has been the coming into
bearing of Red Cliff plantings. Red Cliſt is a settlement of ex-soldiers
settled on the land by the Government. Comparative high yields of
that area will be noted. It will be seen also that the large crops of
1929 and 1930 have not been due to increased acreages, as there is
a slight tendency toward reduction.
COSTS OF PRODUCTION
Mention has been made of the fact that expansion of production

is being discouraged. The reason, of course, is mainly the relation
ship between costs and market prices.
The development and migration commission made a detailed sur
vey of the economic aspects of the dried-fruit industry in 1927, and
it then recommended discouragement of expansion, though prices
were considerably higher than at present. The commission made
careful and detailed cost studies, and some of their findings are being
quoted below because costs have not declined noticeably since these
investigations were made. It is well to mention that a number of
people closely associated with the industry have remarked that the
costs that this commission arrived at were bound to be on the high
side, owing to the fact that those supplying evidence were inclined
to feel that the Government might decide to give some financial aid
to the industry, or that such evidence might lead to a further writ
ing off of capital values of the individual settlers. Despite such
comment, the inquiry was conducted by very competent investi
gators, and at least it can be said that costs of an important part of
the producers are comparable with their findings.
Raisins and currants in Australia are produced largely by small
landholders. The new producing area at Red Cliffs, for instance, was
originally 15-acre lots. There is a tendency to increase this when
bossible, but any holding over 25 acres is considered exceptionally
|.
The cost of bringing an acre of land to bearing varies according to
the cost of the. The following figures based on a 15-acre block
show the cost to be $686 per acre, based on present-day costs.
Land (15 acres at $97 per acre).------------------------------------ $1,455
House and outbuildings------------------------------------ $1,360
Cleaning up and grading----------------------------------- 340
Fencing-------------------------------------------------- 97
Rooted vines--------------------------------------------- 243
Trellis posts and wire:
Posts------------------------------------------- $486
Wire------------------------------------------- 369
- 855
4 racks at (per rack):
Material---------------------------------------- 122
Roof------------------------------------------- 65
4 at-------------------------------------------- 187 748

Harvesting requirements:
300 dip tins at $0.60- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 180
16 bolts Hessian, at $10.94------- - - - - - - - - - - - - - - - - - - - - - - 175
80 sweat boxes at $1.82- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 146
Dip tank-------------------------------------------- 34
— 4, 178
General plant:
2 horses--------------- - - ------------------------- 291
Harness--------------------------------------------- 49
Cultivator-------------------------------------------- 87
2 plows---------------------------------------------- 58
Grape and berry hoe- - - - - - - - - - - - - - - - - - - - - - - - - - - - - 24
Trolley - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - 194
Sundry tools, including dust gun -- - - - - - - - - - - - - - - - - - - - - - 87
--- - - 790
Cultivation, etc., 3 years:
Labor (sustenance) - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1, 750
Manure and horse feed - - - - - . . . . . . -- - - - - - - - - - - - - 680
——— 2, 430
Accumulating charges:
Water ($25 per acre for 3 years on 14 acres) - - - - - - - - - - - - - 350
Shire-------------------------------- ---------- 97
Interest (estimate of State Rivers and Water Supply Com
mission, Victoria) - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 991
- 1,438
Total ---------------------------------------------------- 10, 291
Average per acre------------------------------------------ 686

In some districts blocks were established when labor and material
were not so expensive, and in others when the costs were highor. The
price of land has also varied in the different settlements.
The general plant shown is the absolute minimum. Two horses
have been provided for, although they would not be absolutely nec
essary for the whole of the three years. The fodder allowance for
the first three years has therefore been reduced to an average of $194
per year. No provision has been made for a spräy pump, which
would cost from $194 to $340, and which must eventually be purchased
by a certain number of growers. Some growers purchase additional
plant when they are in a position to do so.
In calculating the cost of production, an allowance of 6 per cent on
the capital value of an improved block has been made as a charge
against income. Growers and packers have been asked to state the
figure on which this percentage should be based, and the value has
almost invariably been placed at $486 to $583 per acre as representing
the present-day capital value of a block. In working on $583 per
acre, the following points have been kept in mind:
(a) Fairly extensive areas were brought to production when costs were lower.
(b) The writing down of liabilities of soldier settlers in South Australia.
10
vić The applications for the writing down of liabilities now being dealt with in
1CUOrla.
(d) The general impression among those well qualified to judge that the present
capital value is from $486 to $583 per acre.
It is important to point out also that, with slight additions in the
way of racks, trellis, and harvesting plant, the improvements and
plant for a 25-acre block would be the same as for 15 acres, thus
reducing the average per acre.
In South Australia, the irrigation commission has recently investi
gated the claims of soldier settlers in irrigation areas to have their
capital liabilities reduced on account of the return from the blocks
being out of proportion to the capital invested. Substantial reduc
tions have already been made by writing down settlers' debits to
figures which represented a reasonable charge for the work done or
services rendered on the blocks.
Up to the present the irrigation commission has investigated 426
holdings and has recommended that $2,008,983 be written off. In
the case of holdings where the area is small and the return per acre
low, a minimum debit has been fixed for improvements at $145.80
per acre, plus cost of house; and in the case of small areas of better
land, the minimum debit has been made $243 per acre, plus cost of
house. Efforts are also being made, where land is available, to
increase the area of individual holdings so as to effect more efficient
and more profitable working.
The evidence taken by the development and migration commission
shows that numerous estimates of the cost of producing a ton of fruit
have been made. The figures for each block vary according to (a) the
size of the block, (b) the quality of the soil and variation in yield,
(c) the area planted with each class of vine; and (d) the ability of the
settler to perform the greater part of the work himself.
ESTIMATED COST OF PRODUCTION ON A 15-ACRE BLOCK
[Assume 14 acres 1 planted: 1 acre for house, buildings, etc.]
Yield of 20 | Yield of 25 | Yield of 30 | Yield of 40

hundred- hundred- hundred- I hundred
Item
e
weight
(1.12 short (1.4weight
short weight
(1.68 weight
short | (2.24 short
tons per tons per tons per tons per
acre) acre) acre) acre)
Fixed expenses: |
Fodder- ----------------------------------------- $292.00 $292.00 $292.00 $292.00
Insurance (fire and workers' compensation) - - -- 14.60 | 14.60 14.60 14.60
Manure, green ($2.43 per acre).---- - - - - - - - - -- 34. 07 34. 07 34. 07 34. 07
Spraying ($1.95 per acre) - - - - - - - - - - - - - - - - - -- 27.30 27.30 27.30 27.30
Sundry expenses (repairs, replacements, etc.)------- 48.67 48.67 48.67 48.67
§...}(allow $19.47 per acre).............. - 272.58 272.58 272.58 272, 58

I)epreciation (see notes). . . . . . . . . . . . . . . . . . . . - - - - 155.7: 155. 73 155. 73 155. 73
Settlers’ labor (all work except for additional labor
at harvest; $21.90, less $2.43 for house, per week)-- 1,012. 44 1,012.44 1,012.44 1,012.44
Fluctuating expenses, according to tonnage:
Additional manure (superphosphate).----. . . . . . .--- 82.73 82.73 170.33 194.66
Extra labor for harvesting ($21.72 per ton) ----...- ...; 340. 57 425.71 510.85 681. 14
Sundry harvesting expenses (dip material, fire
wood, etc., $2.61 per ton).------------------------ | 40. 92 51. 16 61.39 81.85
| 2,321.61 || 2,416.99 || 2,599.96 2,815.04
Interest on capital value of land improvement | 525. 58 525. 58 525. 58 525.58
Interest on production costs. . --------------- 126. 53 136. 26 146.00 160.59
Total cost---------------------. 2,973. 72 3,078.83 3, 271.54 3, 501.21
Total yield (short tons). 15. 68 19.6 23. 52 31.36
Cost per short ton----------------------- - T] $189, 65 $157.80 $139. 10 $111.65
1 If the plantings cover more than 14 acres, the cost of production perton will be proportionately reduced.
l Nº-The
owed.
figures in the table are subject to reduction if the commission’s recommendations are fol
11
RETURNS FROM 15-AcRE BLock ox SweAT-Box PRICEs RANGING FROM $155

To $195 PER SHORT TON
Yield of 20 hundredweight (1.12 ; Yield of 25 hundredweight (1.4

| short tons) short tons)
Item —r———— | | | rºw,
; IProfit or - | Profit or
Cost Return ---
loss
Cost -
Return l loss
$2,973. 72 $2,430.40 –$543. 32 $3,078. 83 $3,038.00 –$40.83

2,973. 72 2,587. 20 –386. 52 3,078. S3 , 3,234.00 +155. 17
. 72 .00 —229: 72 3,078. 83 3, 430.00 +351. 17
2,973. 72 , 901. 80 –71. 92 | 3,078. 83 3, 626.00 +547. 17
2,973. 72 3,057. 60 +83. 88 | 3,078.83 3,822.00 +743. 17
Yield of 30short
hundredweight
tons) (1.68 Yield of 2 tons (2.24 short tons)
Itern ——- - - -- – – —— — —-— —- i - - - -
Cost
ºn
Return | Profit
loss
or Cost - -
Return ! Profit
loss or
Price per ton: | |

$155----------------------- $3,271. $3,501. 21 $4,860, 80 +$1,350.59
$165-- 3, 271 3, 501. 21 5, 174.4() +1, 673. 19
$175-------------. - - - - - 3, 271.54 ! 3, 501. 21 : 5, 488. 00 +1, 986.79
$185--- - - ---,
- - 3, 271. 4 4, 30]. 2.5 | 5, 801. 60 +2, 300. 39
$195--------- - - - - ---- i 3, 271. 54 4, 533.75 I 6, 115, 20 | +2, 613. 99
NotE.–Figures (cost) based on table immediately preceding.
The rates have been fixed on a conservative basis to allow for

replacements where necessary.
SETTLER'S LABOR
In order to arrive at the true cost of production, an endeavor has

been made to ascertain the actual outgoings incurred by a man who
does the whole of the work of his block with the exception of addi
tional labor at harvest time. It is then necessary to add a sum to
represent the value of the settler's labor. No definite basis has been
laid down; the figure varies from $17 to $24.30 per week. The amount
shown in this statement is arrived at by the following method: Allow
$21.85 per week less $2.40 per week for rent of house, which is included
in the capitalization of the block. The highest basic wage in the
industry up to May, 1927, was $23.10 per week (for expert pruners)
less $3.40 per week deduction iſ a 4-room house is supplied. On an
average, the wage ranges from $18.95 per week outside of Renmark
and Mildura to $22.10 per week in those districts.
FLUCTUATING EXPENSES
Additional manure.—To obtain a higher yield per acre than 1.1 to

1.4 short tons it is necessary to increase the quantity of superphos
phate used. Taking 0.22 short ton per acre as the minimum,
allowance has been made for 0.45 short ton to produce a crop of 1.7
short tons and 0.50 to 0.56 short ton to produce a crop of 2.2 short
tons. Growers are not yet fully aware of the best methods of using
lººphosphate to obtain increased tonnage, or the quantities to
apply.
The average grower sows 0.22 short ton per acre and hopes for a
crop of 1.1 short tons or better, but very few have studied the science
12
of soil fertilization. Where careful attention has been paid to this

phase of the production question, crops averaging 1.7 and 2.2 short
tons of fruit per acre have been obtained fairly consistently.
The figures shown in the estimated cost of production in a 15-acre
block are not to be taken as an indication of the commission's recom
mendation of standard practice in manuring, this is a matter for
advice from the scientist who has studied the problem in its relation
to soil requirements and growth of the vine, and who has made experi
ments and tested theories in this connection.
While explanation of all these expenses is not being given, explana
tion with regard to labor is as follows: Some growers pay more than
$21.70 per short ton—some, less. A great deal depends on the class
of man employed for picking. Casual labor is employed, and some
growers have considerable difficulty in obtaining the best results.
Where everything runs smoothly and efficiently, a good grower can
get his crop off for a payment of $21.70 per ton in addition to his own
labor. It must be borne in mind that a settler on a 15-acre block
performs a considerable part of the labor on the block himself.
Sundry harresting erpenses ($2.61 per short ton).-This includes the
estimated cost of olive oil and carbonate of potash for cold dip, or
caustic soda and fire wood for hot or modified hot dip. For cold
dip the cost would be slightly higher than for hot dip.
INTEREST ON CAPITAL
This allowance (6 per cent on $583 per acre) is based on the esti
mated present-day value of a block in bearing. It is considered that
a grower is entitled to a return of 6 per cent interest on his capital.
The basis for arriving at the amount shown has already been dis
cussed. The majority of growers have to pay at least 6 per cent
interest on the balance due on their blocks; soldier settlers usually
pay only 5 per cent.
INTEREST ON PRODUCTION COSTS
Most growers are unable to obtain loans direct from the banks to
enable them to produce their crops. The have to borrow from the
packing sheds or agents, who charge 8 per cent as their rate of interest.
Two years elapse from the time when a crop is first started to the
date of final realization, and the packing sheds advance to growers
monthly to enable them to carry on. On an average, the packing
sheds estimate that growers financed in this way pay interest on the
full advance for a period of nine months, so the 8 per cent has been
added for that period.
For comparison, a statement of costs of production on another
allotment is given where yields are decidedly above average, namely
1.8 short tons. The average in Australia is about 1.4 short tons.
ACTUAL RESULTS OF A 20-ACRE BLOCK
Figures have been obtained for a 20-acre block, of which 18 acres

are planted with sultanas. The 1926–27 expenses, when the block
had reached full bearing, were as follows:
Expenditures
Water rates and extra------------------------------------------ $440, 00
Shire rates---------------------------------------------------- 47. 60
Vineyard protection-------------------------------------------- 3. 65
Insurance----------------------------------------------------- 42. 65
Repairs and renewals------------------------------------------- 99. 00
Dip and spray materials---------------------------------------- 199. 00
Manure------------------------------------------------------- 359. 00
Cost of working (including horse feed, cultivating, pruning, harvesting,
and drying, depreciation, etc.) --------------------------------- 2, 373. 00
Interest on capital, 6 per cent on $10,692 (figure supplied by grower) -- 642. 00
Total------------------------------- - - - - - - - - - - - - - - - - - - - - 4, 205. 90
The total yield was 33.4 short tons of sultanas from 18 acres,
equivalent to just over 1.85 short tons per acre; and the cost of pro
duction per short ton was $117. If sultanas average $173 per short
ton in the sweat box, as is anticipated for this year, this block will
return a net profit of $1,706 after paying 6 per cent interest on
capital.
In all the above instances cited, it will be seen that the commission
concluded that costs would range over $194 per acre and their general
opinion was as follows:
Growers averaging 1.4 to 1.7 short tons per acre should, on a sweat-box return
of $1.61 per ton, make a profit over and above living expenses and interest on
capital if their costs are kept down to a figure which will give efficient results,
without depriving the block of any necessary expenditure. On the other hand,
there are blocks which are definitely incapable of producing a better average
crop than 1 ton per acre.
In comparison with the above official outline of costs, many
people closely associated with the industry would estimate costs
considerably lower. For instance, such claims are that dried fruits
can be produced, with a fair profit, on a return of $156 per acre.
Many could not meet all expenses, but such people contend that
part of their decrease would be overcome by gradual extensions of
more efficient producers.
On one point it seems practically agreed in the trade, and that is
that approximately $122 per acre return is the minimum at which
growers could recover their “out of pocket” expenses, without allow
ances for depreciation or other capital charges, but with a bare
existence to the owner. The basis of one such estimate of prime
cost on a 20-acre lot (1 acre planted with lucerne to supply fodder) is
as follows:
Per acre costs:
Manure----------------------------------------------------- $12. 15
Spray and harvest materials----------------------------------- 9. 72
Water and shire rates----------------------------------------- 19. 40
Harvesting wages-------------------------------------------- 24. 30
Owner's living and his labor----------------------------------- 55. 85
Total------------------------------------------------- 121. 42
While this schedule may be open to some criticism for omissions,

it undoubtedly sums up the general view of many people in the
industry.
Labor costs of harvesting are expensive, partly owing to the
system of drying under covered sheds made necessary by occasional
rainfall during the drying season; consequently, $21.70 per short ton,
in addition to owner's help in harvesting, is lower than the average.
14
There is a tendency now to hire pickers on contract, by which such

costs are sometimes almost cut in half.
Weather conditions should also be mentioned in connection with
costs and returns. Occasionally serious rainfalls occur during the
drying season, with attendant heavy losses. Frosts also occasionally
occur in the early season. Difficulties with alkaline soil also add
to costs, but that will be mentioned later. The trade claims that a
large part of the high cost is due directly and indirectly to labor
conditions. As an instance, it is mentioned that coal, f. o. b. Red
cliffe, costs $12.99 per short ton. High customs duties are also
blamed as being direct and indirect means of causing high costs
of production.
MARKETING AND PRICES
Australian consumption of raisins and currants is about 12,500

tons annually. In 1928–29, a bumper season, 80,174 short tons
were produced; consequently, an export quota was set of 82 per
cent sultanas, 74 per cent currants, and 66% per cent lexias. B
fairly complete organization of marketing arrangements (which will
be described later) the Australian requirements are sold at much
higher prices than are secured for export. About 90 per cent of all
exports go to Great Britain; some quantities go to other British
Dominions.
The trade estimates that on exports to England costs from sweat
box prices (prices received by growers on delivery to packing sheds
in boxes) to English realization prices are approximately $61 per short
ton plus 10 per cent of realized prices. Consequently when, for in
stance, sultanas are being sold in England at $154 per short ton
(price February 20, 1930), producers returns would be:
Realization price in Dngland------------------------------------- $154. 00
Less export expenses-------------------------------------- {} º
76. 40
Return to grower----------------------------------------- 77. 60

With an average production of 1.4 short tons per acre the returns
per acre would be $108.60. Then, in addition, on the 20 per cent of
dried fruit sold in Australia probably net returns are about $65 per
ton more, making a further contribution to the whole average price
of about $13 per ton. Consequently, net return to grower would be
slightly over $121.60 per acre for sultanas, even at present low prices,
given an average crop.
The London realizations for lexias were as follows, based on a price
of $100 on February 6:
Realization price in England-------------...------------------------- $100
ſº
Less export expenses- - - - - - - - - - - - - - - - - - - ---------------------
— 71
Return to Krower-------------------------------------------- 29
Here it will be seen that results are truly disastrous, despite com
paratively good yields per acre and higher domestic prices.
The realization price on currants in London was $155 on February
20, and, computed on the same basis as above results, would be about
equal to the net return for sultanas.
15
Average prices received in London for raisins and currants during

recent years were as follows:
AvKRAGE PRICE IN LONDON FOR SULTANAs, LEx1As, AND CURRANTs
Price per short ton
Sultanas Currants | Lexias
$126 $121 $126

368 163 167
233 185 188
153 185 145
180 188 154
Prices (for week only) Feb. 6, 1930- 155 158 100
Prices (for week only) Feb. 20, 1930--------------------------------------- 154 155 ----------
1 Average to the end of December; since then prices have been easier.
In comparison with the above abbreviated trade method of com

puting it will be of interest to note the tables of expense compiled
by the commission, since they indicate the definite expense items to
various destinations and indicate clearly the comparative returns
from various markets. Though these tables were compiled in 1927,
the expense items are practically the same now, except for a few
items which will be noted; and they still portray relative returns
from markets mentioned, though absolute prices and returns to grower
are decidedly lower. Particular items of expenses shown in tables
now altered are as follows, showing the rate of export levy per pound
collected during the season 1927–28 on dried fruits exported from
Australia: Sultanas, $0.25; currants, $0.125; lexias, $0.107.
The rate of levy per pound fixed in respect to fruit shipped from
the harvest season 1928–29 is as follows: Sultanas and currants,
$0.21; lexias, $0.107.
Since realized prices are lower, naturally commission based on
percentage of realized prices is lower accordingly.
LExIAS SoLD IN AUSTRALIA AT AVERAGE 1926 PRICE OF $286.60 PER TON
South South
Item Aus- | Victoria Item AuS- Victoria
tralia tralia
- ----|---— — — — — —- -- — — — — —— — — — —i- — — — — —
Price of 1 short ton of lexias at Charges—Continued.

$286.60-------------------------- $286. 60 || $286. 60 Commission 5 per cent------- $11.80 || $12.19
Freight and cartage----- 9. 10 10.85
Charges: | Packing costs--------- 26.03 21. 70
10 per cent trade discount- 28.66 28.66 Packing shed insurance- ---------- 1. 30
3 per cent cash discount-- 7. 74 7.74 -
Interstate charges------ 11.7 5.00 Total charges--------------- 97. 57 88.96

Head office levy------ - . 54 . 54 || Net return----------------------- 189,03 || 197.64
State board levy-------------- 2.00 98 -
116020–30——3
16
SULTANAs Sold IN AUSTRALIA AT AvHRAGE 1926 PRICE of $347.32 PER Ton
| South South
Item Aus- | Victoria Item Aus- Victoria
tralia tralia
Price of 1 short ton of sultanas at | Charges—Continued.

$347, 32------------------------- $347.32 $347.32 Commission 5 per cent------- $14.46 || $14.84
-- Freight and cartage--- --- . 9. 10 10.85
Charges: Packing charge------- __| 26.03 || 21.70,
10 per cent trade discount----| 34.73 34.73 Packing-shed insurance-------|-------- 1. 30.
3 per cent cash discount- . 37 - 9. 37
Interstate charges----- - 11.70 | 5.04 Total charges--------------- 107.93 99.35
Head office levy--- . 54 -- . 54 || Net Sweat-box return------------- 239.39 247.97
State board levy-------- ----| 2.00 .08
REALIZATION CHARGEs on DRIED FRUIT FROM WICTORIA
Item | Sultanas. Currants! Lexias

TO CANADA
Selling price, c. i. ſ.------...----...- .. $268.75 $177.68 $182.14

Less—
Brokerage, 2% per cent------------------------------------------------ 6. 72 4.45 4. 55
Overseas freight - - - - - - - 13, 57 13. 57 13. 57
Exchange, 0.875 per cent 2. 32 1. 52 1.56
Marine insurance------------- 1.29 . 87 . 87
Shipping charges, Melbourne- 1.07 1.07 1.07
Export levy------------------- - 5.04 2.50 2.50
State board levy- | .98 98 . 98
A. D. F. A. levy------------------- | . 54 45 . 54
Selling agent's commission, 4 per cent -- 0.49 6.09 ſº. 26
Rail carriage to seaboard---------- -- 4.34 5.00 5.00
Packing and wiring- - 21.34 22. 41 21. 34
Insurance in shed.-- 1. 07 1. 07 1.07
Total charges----------------------------------------------------- 67.77 60.07 59. 31

|
Net return to grower--------------------------------------------------. 200. 98 117. 61 122.83
TO UNITED KING I) () M.
Selling price, delivered ex store, London--- - - - - ----...-----. --------------- 242.86 182. 14 182. 14
Less— |
T)iscount and brokerage, 3 per cent -----------------------------...----- : 7.20 5.46 5.46
Tare, 35.32 pounds per short ton-- - 4.33 3.26 1.63
1)ock charges and rent average- - 8.66 8.66 8.66
Freight to London - - - - --------- 13. 57 13. 57 13. 57
Marine insurance- - - - - S5 .85 .85
Shipping charges, etc.-- 1. 07 1.07 1. 07
Fºx Inort levy --------- 5.04 2.5 2.50
Selling agent's commission, 5 per cent 10. 10 7. 34 7.42
Exchange on money - ------------- - 54 . 22 . 22
State board levy---- - - - 98 .98 . 98
A. D. F. A. lev 54 54 . 54
Rail carriage to sea board- 5.00 5.00 5.00
Packing and wiring - - - - - - 21. 20 22.41 21. 29
Insurance on shed . . . . .-- -------------------- - -------------' 1. 07 1. 07 1.07
Total charges--------. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - | 80.33 72.93 70. 24
Net return to grower- - - - - - - - - - - -------- - - - - - - - ... ... ..... ... ..... 102.53 || 109.21 Tilloo
to NEW ZEALAND
Selling price f. o. h., Melbourne- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ---. 242.86 169.23 145.36
Less—
3 per cent discount - - - - -----------. -- - - - - -------------------------- 7.20 5.08 4.36
Brokerage, 134 per cent-- 2.95 2.05 1.76
Company's selling coinnission, 4 per cent - 9. 30 6. 48 5. 57
Melbourne shipping charges - 1.07 1. 07 1.07
Fxport levy------ - 5.04 2.50 2.50
State hoard levy - - - - - - - - - - - .98 . 98 : .98
A. ID. F. A. levy---- - - - - - - - - - - - - 54 . 54 . 54
Railage to seaboard . 4.9 4.96 4.96
Packing and wiring - - - -- 21. 34 22.41 | 21. 34
Insurance sheds------------------------------------------------------ 1.07 1.07 1. 07
Total charges------------------------------------------------------- 54.54 47. 14 44.15
Net return to grower----------------------------------------------------- 188. 32 122.09 101.21
1 Tare, 17.66 pounds per short ton.

17
The packing cost is higher in South Australia on account of private

sheds which pack a large quantity of the fruit and charge up to $30
per short ton for packing, as is done by the cooperative sheds. The
latter return any profits to shareholders; the former do not.
The figures regarding export fruit have been taken from actual
sales for fruit shipped from Mildura. The packing charge ($21.29 for
raisins and $22.41 for currants) is the actual charge appearing on the
account sales. A fumigation fee ($2.16 per ton) is an additional
charge on fruit sent to London. -
SUMMARY OF NET SWEAT-Box RETURNS
Item 'sultanas curtants Lexias
By Sales in Canada------------------------------------------------------- $200. 98 | $117.61 $122.83

By sales in Great Britain 109. 21 111.90
By sales in New Zealand 122.09 101. 21
By sales in Australia: - .
South Australia--------------------------------------- 151. 81 189. 03

Victoria----------------------------------------------- 160.46 i 197.64
The preceding table clearly shows the higher prices which accrue to
growers by selling in the home market, and which are obtained by
market control and organization of marketing.
EXPORT MARKETS
The present export outlets for Australian dried, fruits are almost
entirely bound up with imperial preferences. , Whereas shipments,
for instance, to Germany, are not even considered since Australian
dried fruit would have to bear the general tariſ rates which are con
siderably above, customs levy against United States raisins, Austra
lian exports of dried fruit to England have preference over non
Empire products as follows (per short ton): Sultanas, $30; lexias,
$30; currants, $8.67. If the Australian raisin industry were deprived
of preference in the principal consuming market of the Empire, the
outlook for the producer under the economic conditions obtaining in
Australia would be most serious, - - -
The position in regard to the preferential tariff in the United

Kingdom on currants and raisins is set out in the following quota
tion from the report of the imperial economic committee on market
ing and preparing for market of foodstuffs produced in the oversea
parts of the Empire.
Currants have for several centuries been classed as a dutiable article on impor
tation into the United Kingdom. The rates of duty on currants before 1890
were, on the average, about the same as those levied upon raisins. In that year,
as a result of a commercial treaty between His Majesty's Government and the
Greek Government, the duty on currants was reduced from 1.5 to 0.43 cent per
pound. In effect, this reduction gave Greece an important preference in the
United Kingdom market over other countries supplying other dried vine fruits.
In 1919 a preferential rebate of one-sixth of the duty was granted to Empire
currants. In 1925 this preference was increased to 0.43 cent per pound by the
admission of Empire currants duty free.
Raisins also have been dutiable on importation into the United Kingdom for
a very long period. In 1823 a definite colonial preference on raisins appeared
in the customs schedule. The lowest rate applied to foreign raisins was 4.3 cents
per pound, whilst fruit from the Cape of Good Hope or from the East India
Co.'s territories was charged 2.1 cents per pound. From 1823 to 1853 a pref
18
erence of about 50 per cent on the lowest duty charged on foreign raisins Was
Preference on Empire dried
allowed on raisins produced in British possessions.
fruits disappears from the customs schedule from 1853 until September 1 , 1919,
when a rebate of one-sixth of the duty of 2.2 cents per pound was introduce::
In 1924 the duty, on raisins was decreased to 1.3 cents, per pound, thus ºut.
matically decreasing the value of the preference. In 1925 the preference was
increased to 1.5 cents per pound by the removal of the duty on Empire-grown
ItalSlnS.
Australia has a reciprocal tariff treaty with Canada which gives

Australian raisins and currants, preference in Canada as foliº.
Sultanas, lexias, and currants, 1% cents per pound, or approximately
$60 perton, . Australia has no preferential treaties with New Zealaj
or South Africa; the latter country is a producer of raisins but buys
some Australian currants.
AUSTRALIAN ExpoRTs of RAISINS AND CURRANTs, 1925–1929

[In short tons]
-
Country 1924–25 | 1925–26 | 1926-27 | 1927–28 || 1928–29 .

Ti
Sultanas to— :
Great Britain------------------------------------ 1}}} | 13, $15 31, 709 12, 432 24, 613
- *;
---- - - - -
1, 976
984
1, 327
793
1. º
1,384
143 |TTTTTTi131
3.7-l----------|----------
142 110
14, 848 34,800 14, 694 27, 134
Cuºiºi,
reat Britain----- - 7,034
4, 9,
** > O69 5, 327 656
d ------
;
179 #
55 541
2,085 521
2, 463 10,
1,420;
iº l 15 269 308 r
184 235 184 #

7,974 || 10, 170 8, 457 4, 132 12,928
Lexias to—
39, 328 15, 554

l, §§ 528 i., §5? 3. #
115 3, 805 3, 423 3.10.
Other destinations--- 352 § 3
Grand total.---------- 27,471 25, 809 46, 318 -i. 262

- - - - --- - - - - - -- - - -- - -- - -- - - r - 1, 489 42,236
1 Incomplete. TTTTTT-T---— — —— — — -
BRitish Imports of RAISINs AND CUrals A.NTs, 1925–1929

[In short tons]
Item 1925 | lº26 F

1927 1928
| 1929
T- -
From all Sources: 65, 43 | T-|
*:::::::::::::::::::::::::::::::::::::::::::::: ##| #38; as wo

Total.---------------------
--- H.--—ºº
128, 50s ] 130,447 |Tºast
---------------------
I &#| ºf
###| #: T- º - n
From Australia: 7, 612 , 387 152,270
§º::::::::::::::::::::::::::::::::::::::: 16, Žiž 8,481 5, 394

Total------------------------------------------
–
27, 329
12, 233
20
31, 343
n
1 702
6,368
113,432
40,311
,714 | 37,036 17,070

*
| 53,743
1 From British countries, Australia mainly.
19
English consumption is, roughly, 140,000 short tons of raisins and

currants yearly, and in the 1929 season Australia exported about
56,000 short tons, or approximately 40 per cent of the total English
requirements, although at the 1st of January, 1930, approximately
17,920 short tons remained still unabsorbed. Clearances have been
greatly facilitated by the smaller American crop. The outlook for
shipments in 1930 is only about 8,960 short tons less than a year ago,
but in addition there will be at least 11,200 short tons of hold-over
Australian stocks in England, and there is no assurance of a second
year American crop shortage. Consequently, the export season
started under exceedingly depressed circumstances; London sultanas
were ranging about $154 per short ton, lexias at only $100, and cur
rants $155 for the middle of February, the commencement of the
1930–31 export season.
AvKRAGE PRICE, PER SHORT TON, OF SULTANAs, CURRANTs, AND LEx1As,
1925–1928
Sultanas Currants Ilexias
Season --------------- -
Short | Average | Short | Average | Short | Average

tons price tons price tons price
14,437 $330 7,034 $149 3,595 $155

12, 815 314 9,069 184 722 188
31, 528 261 5,327 207 2,292 211
12,429 171 | 656 270 2, 456 162
SHIPMENTS OF AUSTRALIAN DRIED FRUITs To PRINCIPAL PORTS

[In short tons]
|
|
Exported to
|
SeaSon | Total
l
I London | Liverpool Glasgow Bristol Hull

I I -
|
25, 166 20, 242 3,619 666 567 73
22, 606 17, 161 3,955 828 360 304
39,328 28,052 8, 108 1,450 961 757
15, 555 11, 775 2,919 424 395 41
37, 138 26,575. 7,410 2,047 949 157
EXPORTS TO CANADA
The effect of the reciprocal treaty with Canada in stimulating sales

of dried fruit has been rather disappointing to Australia, owing to the
fact that California continues to enjoy the bulk of the trade, despite
the rather heavy preferential treatment.
CANADIAN IMPORTs of RAIsINS AND CURRANTs
[In short tons]
Year ended Mar. 31– Currants Raisins t Total
2, 44 5 16,006 19,351
2, 305 19,749 22,054
3,096 22,355 25,451
3,061 21,828 24,889
-
20
AUSTRALIAN ExpoRTS OF CURRANTS AND RAISINs To CANADA
[In short tons]
Raisins
Season ended in February— Currants—T-| Total
l Sultanas | Lexias
455 292 122 869

2,085
2, 463 i 984
793 736
167 | 3,806
3,423
l
During the 1929 season there has been a very marked increase in
Canadian imports from Australia, owing to the smaller California crop. |
Owing to proximity, Australia obtains a considerable portion of the

New Zealand trade in dried fruits without preference; though it is
claimed in Australia that competition of American raisins makes
business difficult. -
The importations of currants and raisins into New Zealand during

the past four years were as follows:
NEW ZEALAND IMPORTs of CURRANTS AND RAISINs, 1925–1928
[In short fons]
Calendar year Currants | Raisins Total

- - -- - - ---
– –
1925- - - - - - - - - - - - 825 4,024 4,840
1926 -- - - - - - - - - - - 526 4, 521 5,048
1927 -------------. 728 4,613 5,341
1928 - - - - - - - - - - - - - 642 4,440 5,081
|
The following shipments of Australian currants and raisins have

been made to New Zealand during
8-, the last four seasons and during the
present season to March 1:

AUSTRALIAN ExpoRTs of CURRANTS AND RAISINs To NEW ZEALAND, 1925–1929
[In short tons)
|
SeaSon Currants jº. Total
——
1924–25
----------——--- 393
- 1, 272 | 1,665
1925–26 347 1.611 | 1,958
1926–27 541 1,987 2, 528 I
1927-28 - - - - - - ---- 521 1,332 1,852
1928-29 (to Mar. 1)-----------------------------------------------| 432 1, 239 | 1,671 |
I l
Small shipments of Australian currants are made to South Africa,

but practically no raisins.
TRADE IN THE EAST
A recent statement of the Australian Dried Fruit Export Control

Board regarding exports to the Far East gives the present viewpoint:
That there is a considerable trade in dried fruits in China and Japan is un
doubted, but inquiries and information available indicate that this is being done
in the lowest priced qualities, and the reports which appear as to the possibilities
of the eastern markets should be accepted with considerable reservations as to
the possibility of these countries absorbing any quantity of Australian fruit at
prices which would be remunerative to growers, or at anything approaching
rates which are possible in Great Britain, Canada, and New Zealand.
21
ORGANIZATION OF THE INDUSTRY
The Australian dried-fruit industry is highly and elaborately or

ganized for the purpose of putting into effect its aims in marketing,
and the organizations are surprisingly complete in that they include
nearly all production.
Their aims are, briefly, to sell in Australia as large a percentage
of the crop as possible at a high price compared with export sales;
to obtain equity in the allotment of a share in this home market
between the producing States; to set up and maintain export grades;
to erect and control sales organization in export markets; to conduct
publicity and other activities on behalf of the whole industry.
In view of the amounts of money that the State and Federal Gov
ernments have directly or indirectly invested in the industry, they
have accorded desired legislation for the formation of organizations.
For instance, it violates the Federal constitution for States to forbid
or interfere with interstate trade, but the Federal Government found
a way out of this troublesome problem by passing a law making it
mandatory to obtain a license for interstate shipments of dried fruits
and vesting the power of issuing such licenses in safe hands.
The Australian trade takes great pride in the organization of the
industry. One Australian who recently made a survey of the Cali
fornia raisin industry stated that “The California raisin grower has
an advantage of soil, climate, water supply, and the benefits of cheaper
labor costs. The Australian grower has the advantage of organiza
tion and preferential trade treaties.”
The Australian organizations are the Australian Dried Fruits
Association (A. D. F. A.), Commonwealth (export) Dried Fruits
Control Board, and State control boards in Victoria, South Australia,
New South Wales, and Western Australia.
The multiplicity of boards is due to limitation of the Federal con
stitution in respect to trade control in the various States. The dried
fruit industry and other producing industries are hopeful of an amend
ment to the constitution which will permit Federal organization of
industry free from such limitations as now exist. As an example of
how these restrictions affect the industry it may be stated that one
State may decide to export 75 per cent of its produce in order to
maintain a stable market in the Commonwealth for the remaining 25
per cent. An adjoining State may decide to export only 50 per cent
of its produce and exploit the first State with the remainder. Thus,
the efforts to effect stability of price in one State may be nullified by
the action of producers in the adjoining State. Because it produces
only a small part of the total and yet consumes nearly 50 per cent of
the lot, New South Wales contends that its producers should have a
larger percentage of the home market than do the producers in
Victoria and South Australia. However, if Victorian producers can
not ship to States which produce very little, their export quota would
amount to nearly 100 per cent—which would defeat the whole idea
of the pool.
AUSTRALIAN DRIED FRUITS ASSOCIATION
The Australian Dried Fruits Association (A. D. F. A.) is a volun

tary organization embracing 90 per cent of the producers in all
States. Its main duties are to fix prices and terms and conditions of
sale of dried fruits in Australia. Control of its operations are vested
22
in a board of five members representative of growing and packing

interests. The association also acts in all general matters affecting
the industry outside the scope of the statutory boards.
This association includes in its membership not only cooperative
organizations but private companies as well, and that is claimed to
be its strong point, namely, that all interests of importance are
united in it. It makes a levy of $0.54 per ton on growers.
STATE BOARDS
The various States have formed boards under authority given

under State legislative enactments. Such legislation in Victoria,
South Australia, and Western Australia took place in 1924, while
New South Wales passed an act in 1928 and formed a board.
The State boards have the responsibility of determining the quotas
of each class of fruit to be marketed in the Commonwealth and ex
ported overseas, and of giving quotas to the individual sheds. The
consumption of fruit in the Commonwealth, due to stability of price,
is stable and shows a small margin of increase each year. Tentative
releases are made as the crop is harvested and delivered to packing
sheds, and a final export quota is declared when the full crop is
ascertained. Compulsory removal of surplus stocks from the home
market enables the A. D. F. A. to maintain prices at a high level in
the Commonwealth and to ensure stability of prices and profits.
The State boards also make a levy (per short ton) on growers as
follows: ‘New South Wales, $2.53; Victoria, $0.98; South Australia,
$2; Western Australia, $2.53.
Since they are organizations constituted under State authority,
they are able to obtain publicity through public schools. For in
stance, New South Wales has planned an extensive cooking week
under school auspices with expert cooks and cookery books.
TOTAL LEWIES
Total levies of the A. D. F. A., the export control board, and the
State boards vary according to the States of origin and according to
whether exported or sold locally, but amount to nearly $6.52 on
exports and $2.17 on the 20 per cent domestic sales.
To summarize, the following are the prevailing rates: A. D. F. A.
levy per ton, $0.54; State board levies, listed above; in addition, for
export (covering 80 per cent of crop) sultanas and currants per ton,
$4.34 and $2.17, respectively.
Publicity activities of the A. D. F. A. and the various State control
boards have been briefly mentioned. The export control board last
year spent $97,200 in England on advertising, the major part of their
total levy. This payment is under the Australian trade publicity
scheme in Great Britain on behalf of dried fruits, dairy produce, and
other primary produce. The dairy organization is, incidentally,
paying about $24,300 annually on this joint scheme. As will be
noted from the yearly balance sheet of the control board, smaller
sums are also being expended in Canada and elsewhere.
Reference should also be made here to the benefits to Australian
dried-fruit publicity under the Empire Marketing Board, which
3. in England on behalf of the produce of the Dominions and
Olon16S.
23
PROBLEMS AFFECTING THE INDUSTRY

SOIL AND DRAINAGE
There is a tendency throughout the whole Murray River Basin,

including such tributaries as the Murrumbidgee, for alkaline soil
conditions to develop. The accepted geological theory is that this
area was at one time under sea, which might explain alkaline consti
tuents in the soil. In most parts of this basin there is a comparatively
shallow soil which is underlain by a hardpan of varying thickness,
somewhat impervious to water and containing salts. In the Mildura
area the old settlement has had some difficulty. The old canals were
not cement lined, and seepage from them caused important areas to
go out of production. Over the whole area drainage of the irrigation
water constitutes a problem. It was earlier thought that a remedy had
been found by blasting out large sumps through the hardpan for practi
cally each holder, or where drainage was convenient. However, it was
found that generally the sand below the hardpan had little natural
drainage, and during a recent visit most such sumps were full of water.
To work out a really satisfactory drainage system will entail expense
which many settlers, in the old area particularly, may be unable to
afford, with low prices for dried fruit. The newer areas of Red Cliff
and Meribein are being better provided for by the Government;
besides, their soils are still comparatively new to irrigation and have as
yet developed fewer of these unsatisfactory conditions.
Soil conditions on new settlements in New South Wales across the
river are practically identical. Similar conditions also exist on the
South Australian side.
PACKING PROBLEM
The migration commission in their report particularly stressed the

lack of efficiency of packing sheds in general, though there are a num
ber of high-grade sheds with adequate volume for efficient manage
ment. The charges for processing and packing fruit vary consider
ably in the different settlements. At Mildura, for instance, all sheds
except two charge $21.33 per short ton for packing sultanas and lexias.
The two exceptions charge $25.67 per ton. The charge at Renmark is
$30 per ton, at Berri 827.66 per ton, and at Waikerie $21,43 per ton.
At Nyah the rate is $25.89 per short ton (of which $5.40 is rebated by
the cooperative shed), and at Woorinen (one shed only, and that
cooperative), $19.50 less $3.79 rebate. Currants cost $1.07 per short
ton extra for packing. The South Australian rates and those for
Nyah and Woorinen include all costs from sweat-box to railhead,
whereas the Mildurasheds charge insurance of $1.29 and cartage of
$0.62 in addition to the $21.29 for packing and wiring.
The Migration Commission summarizes conditions as follows:
South Australia registered, in 1927, 67 packing sheds to handle 13,000 short tons
of fruit, an average of about 194 short tons per shed. Forty-nine of these sheds
are situated on the River Murray.
The following statement shows how the pack was distributed:
40 sheds packed under 112 short tons each.
13 sheds packed between 112 and 220 short tons.
2 sheds packed between 890 and 1,000 short tons.
1 shed packed between 1,450 and 1,560 short tons.
1 shed packed over 2,240 short tons.
24
One shed packed approximately one-fifth of the total for the State, and there
were only six sheds which packed 560 tons or more each.
Although the position in Victoria is not quite so bad as in South Australia,
it is open to similar objections. For the 1927 season, there were 44 registered
packing sheds, including branch sheds, to deal with a pack of 46,480, short tons.
of fruit, an average of 1,056 tons per shed. The capacity of the sheds is indicated
by the following statement: -
19 sheds packed under 112 short tons.

1 shed packed between 330 and 440 short tons.
3 sheds packed between 1,450 and 1,680 short tons.
The commission also blames grading difficulties on the unnecessarily
large number of sheds. Its remarks are as follows:
y
Export markets demand “long lines” of fruit of true type and even grading.
In the majority of small sheds this is not possible on account of the small quantity
of fruit packed, and the small parcels of different grades are unattractive to the
large buyer. The latest reports on the marketing of this year's fruit overseas
indicate that there is still room for considerable improvement in the grading.
With so many sheds operating, it is impossible to give the market what is desired.
For further information regarding grades, it would be necessary
to obtain trade opinion in England, where most of the export distribu
tion is made.
("ON("LUSION
It might be concluded from various opinions given that only the

more eſlicient growers on rather good land can collect total costs and
a bare living when seat-box prices are below $130.18 per short ton.
Many of the growers require possibly $152 per ton, and only efficient
growers can collect out-of-pocket expenses when prices are around
$108.48 per ton; most of them believe they require over $130.18 at
local packing sheds. It would seem certain that such low prices would
not only continue to check extensions but would cause reductions in
acreage—how much it is diſlicult to estimate. Present prices average
far below this figure and are causing anxiety. In this connection it
should be said that the larger part of the men controlling the industry
are of excellent type and are resourceful, and if forced to reduce costs
they will accomplish something. As has been mentioned, there is a
tendency now to reduce harvesting costs by the introduction of
piecework. It is diſlicult to find alternative crops of a remunerative
nature, however, if grape culture is abandoned; admittedly a critical
situation has developed. Prices now, at the commencement of the
export season, are ruinously low; another heavy crop (although about
10 per cent below last year), is being harvested; unsold London stocks
of about 13,440 short tons remain, and prices continue to decline.
To what extent this condition may be temporary remains to be seen.
To gain an idea of current local opinion, it may be helpful to quote
from a newspaper article which appeared as this report was being
written; naturally this article was prompted by the recent sharp
price decline in London and reflects local reaction to it.
25
Because of lower prices for dried fruit overseas and increasing dependence on
those markets because of a mounting production, an economic situation has arisen
in Mildura settlement that is causing anxiety. In the Red Cliffs section alone
about 9,000 acres have been added to dried-fruit production through soldier settle
ments, and with a yearly output of approximately 17,900 short tons. The Govern
ment has come in for criticism for having committed the industry to such a heavy
marketing undertaking without proper consideration of the outlet.
Both soldier and older civilian settlers are now suffering. The soldiers com
plain that their blocks (averaging about 16 acres) do not give sufficient gross in
come because of lower prices, and are seeking enlarged holdings under the home
maintenance plan.
The values of civilian blocks in the older parts of the Mildura settlement have
undergone severe deflation from postwar boom levels. Blocks valued at $729
per acre and more in that period, and before the effect of soldier dried-fruit
production was felt, have been sold as low as $243 an acre.
It is recognized that the difficulties will be greatest in those cases where produc
tion is 1% tons an acre and less, and that the safety mark will be about 2 tons an
acre on the basis of present and prospective prices. Most settlers are striving
to increase output an acre, but some are faced with soil limitations.
The position of the growers is summarized thus: Prices in the sweat boxes for
the 5-year period 1907–1911 were little less than for 1924–1928, but in the first
period wages were from $1.45 to $1.70 a day, and water charges $6 an acre, com
pared with wages from $3.25 to $3.75, a day, and water charges $15.80 an acre.
26
DRIED FRUITS EXPORT CONTROL BOARD
FINANCE STATEMENT FROM JULY 1, 1928, TO JUNE 30, 1929
[London figures included from Apr. 1, 1928, to Mar. 31, 1929] .

Receipts:
July 1, balance forwarded------------------------------------ $89,698
Collection from export levies—
Season 1927 28 to Mar. 2, 1929------------------ $52,721
Season 1928–29 to June 30, 1929----------------- 155,061
— 207,782
Sundry receipts:
Interest on deposit and balance in Australia and at
London------------------------------------ 3, 439
Sundry collections------------------------------ 10, 225
— 13, 664
Expenditure:
In Australia (administrative)--
Board fees------------------------------------ 4, 787
Traveling expenses----------------------------- 4,066
8, 853
Salaries-------------------------------------- 6,969
Stationery, office, and general expenses - - - - - - - - - - - 1, 295
Office rent------------------------------------- 1,011
Postage and telegrams-------------------------- S25
- 18, 953
In Great Britain--—
Fees of London agency-------------. ----------- 4, 105
Salaries--------------------------------------- 21, 621
Stationery, office and general expenses------------ 4, 543
Office rent. ----------------------, ---------- 4, 422
Postage and telegrams-- - - - - - - - - - - - - - - - - - - - - - - - - 972
— 35, 663
Australian trade joint publicity scheme in Great
Britain----------------------------------- 97, 200
Development of Canadian and eastern markets---- 4, 193
Balances (June 30, 1929)--
Cash on deposit and current account—
In Australia--------------------------- 133, 191
In London (Mar. 31, 1929) and in transit- 21, 944
— 155, 135
311, 144
O
.
5.
%•

CREDIT EXTENSION
AND CAUSES OF FAILURE
AMONG PHILADELPHIA GR00ERS
REGE IV EL)
JUL - 7 S3U
O. S. U. LIBRARY
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Trade:Information Bulletin No. 700
\\ F
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C 285
No. Too
UNITED STATES
WASHINGTON : 1930

FOREWORD
This study of credit conditions and causes of failure among grocery

retailers in Philadelphia is one of a series of such surveys conducted
by the Domestic Commerce Division of the Department of Commerce.
A similar study was made in Louisville in 1929 and a report pub
lished at that time, as was a report on failures among restaurants in
Kansas City. An inquiry into the causes of failure among retail
merchants in Newark, N. J., is in progress. These studies are an
outgrowth of the national retail credit survey which was begun in
1928 at the request of the National Retail Credit Association, an
organization representing many thousands of retail merchants in
all sections of the country. .
The purpose is to secure credit and other information from a large

number of establishments and to set it forth, without recommenda
tion, to serve as a chart or guide for the individual merchant in
carrying on his business. The individual business man, knowin
his own experience in these matters, can compare it with that o
others and can govern himself accordingly.
The present report focuses attention on the credit policies of 1,371
grocery stores in Philadelphia, all going concerns, and the causes
contributing to failure of 35 which passed through bankruptcy.
The IOepartment of Commerce was represented in this work by
IDr. W. C. Plummer and Paul O. Ritter. It had the cooperation of
the School of Law and the Institute of IIuman Relations of Yale
University, which helped to finance the project. Prof. William O.
IDouglas represented Yale University. The study had the indorse
ment of the Pennsylvania, New Jersey, and Delaware Wholesale
Grocers' Association, the Frankford Grocers’ Association, and the
Retail Grocers’ Association of Philadelphia. Special assistance
was received from the following individuals: R. G. Bursk, Penn
sylvania, New Jersey, and Delaware Wholesale Grocers’ Associa
tion; Rolf Nugent, Russell Sage Foundation; George Brodbeck,
clerk, United States District Court; G. W. Robbins, Domestic
Commerce Division of the Bureau of Foreign and Domestic Com
merce: and Edwin B. George, manager of the Bureau's district
office at Philadelphia.
W. L. Cooper, Director,
MAY, 1930.
(II)
CREDIT EXTENSION AND BUSINESS FAILURE
A STUDY OF CREDIT CONDITIONS AND CAUSES OF FAILURE AMONG
GROCERY RETAILERS IN PHILADELPHIA, PA.
By W. C. Plummer and Paul O. Ritter
SUMMARY
1. Reports from 1,371 independent retail grocery stores in Phil

adelphia, representing all sizes of stores and all sections of the city.
with total annual net sales in 1928 of $29,425,041, show that 40 per
cent of total sales were made on credit. Of the total of 1,371 stores,
294, or 21.4 per cent, sold for cash only, and 1,077, or 78.6 per cent,
sold for both cash and credit.
2. The credit losses experienced in extending credit to customers
of the 1,077 independent retail grocery stores were 1.5 per cent of
credit sales.
3. Credit losses varied inversely with the size of stores. The range
was from an average loss of 8.3 per cent of credit sales for the small
est stores to 0.2 per cent for the largest stores. The smallest stores
thus had bad-debt losses forty times as great proportionally as the
largest ones.
4. Credit losses were a comparatively small casual factor in the fail
ure of the 35 bankruptcy cases studied, but such losses were a major
cause of failure in 2 cases and a contributing cause in 3 others.
5. Losses in real-estate investment and speculation were a compar
atively large casual factor. Such losses were a major cause in 11
cases. A real-estate slump which occured during the 4-year period
studied made this factor stand out more prominently than it would
in an analysis covering a longer period of time.
6. At the time of their failure, 22 out of the 35 stores studied were
financing themselves in part with money borrowed from loan or
finance companies or individual money lenders at rates of interest
prohibitive for business purposes. However, financing under unfa
vorable terms was not the original cause of the trouble in a single
case. Borrowing under such terms when in trouble from other causes
added to the original trouble, and thus helped bring on bankruptcy
in 22 cases out of the total of 35.
7. Inexperience was a contributing cause of failure in some in
stances, but out of a total of 26 for which information on previous
occupation was obtained. 20 had been connected previously with the
grocery business, as a clerk, owner, or manager.
8. Unscientific business methods and practices were important
causes of failure. Most of those who failed kept no records. Many
of them never took an inventory. One of them had difficulty in
making change and made many mistakes. Another used poor judg
ment in signing a long-term lease of a store building at exorbitant
rates.
(1)
2
9. In a number of cases the grocers who had failed said their trouble
was due to competition, particularly chain-store competition; one
had stores on both sides of him. However, where competition was
keenest, some stores, including independents, were doing good busi
ness and apparently were prospering.
CREDIT CONDITIONS -
EXTENT OF CREDIT
Reports from 1,371 independent retail grocery stores in Phila

delphia, representing all sizes of stores and all sections of the city,
with total annual net sales in 1928 of $29,425,041, show that 40
per cent of total sales were made on credit.
Of the total of 1,371 stores, 294 of them, or 21.4 per cent, sold for
cash only, and 1,077, or 78.6 per cent sold for both cash and credit.
The 21.4 per cent of stores which sold for cash did only 15 per cent
of the total business. It is thus evident that, on the whole, the stores
which sold for cash only were smaller than those which sold for
both cash and credit.
Considering only those stores which did both cash and credit
business, it was found that the credit sales were 47.1 per cent of
total sales.
Grouping, according to size, the stores doing credit business it
is brought out that the larger stores did a much greater proportion
of their business on credit than the smaller ones. The range was
from an average of 34.9 per cent of total sales on credit for the
stores with annual sales from $5,000 to $9,999 to 69.2 per cent on
credit for those with sales of $250,000 and over.
ExTENT OF CASH AND CREDIT RUSINESS OF 1,371 INDEPENDENT IRETAIL GROCERY

STOREs, 1928, PIIILADELPIIIA, PA., REPRESENTING TOTAL SALEs of $29,425,041
| Cash sales | Sales on open credit

Group S
Stores ºº of total . Per Cent:| Per cent .
number Amount of it". Amount | of ai |
| sales | Sales
. !---— —- |
Stores Selling for cash only ----------------- 294 21.4 $4,417,791 15.0 ---------------------
Stores selling for both cash and credit ------ 1,077 | 78.6 13, 227, 500 45.0 ($11,779,681 40.0
All stores----------------------------- 1, 371 100.0 17, 645, 360 60.0 11,779,681 40.0
ExTENT OF CREDIT BUSINESS OF INDEPENDENT IRETAII, GROCERY STORES DOING

I30TII CASH AND CREDIT ISUSINESS, PHILADELPIIIA, PA., 1928
-- I
Philadelphia . Philadelphia
- | -
Stores having annual sales of Per cent Stores having annual sales of L i Per cent
Stores of Sales . Stores ' of Sales
on credit : on credit
--
| |
Less than $5,000----------------- 150 38.4 || $100,000 to $249,999.------------- 16 48.8

$5,000 to $9,999--- 201 34.9 $250,000 and over--------------- | 8 G9.2 |
$10,000 to $24,999– 497 35.2 -
$25,000 to $49,909. - 153 | 41.0 All stores-----------------

-
1,077 47.1
$50,000 to $99,999---------------- 52 i 54, 5
I -
3
CREDIT LOSSES
The percentage of bad debts on credit sales of the 1,077 Phila

delphia stores was 1.5 per cent in 1928. If the credit loss is figured
on total sales rather than on credit sales, the loss is 0.7 per cent.
Credit losses varied inversely with the size of stores; that is, the
larger the stores the smaller was the proportion of credit losses. This
relationship was quite striking. The range was from 8.3 per cent for
the stores with sales less than $5,000 to 0.2 per cent for those sales of
$250,000 and over. The smallest stores thus had bad debt losses
forty times as great proportionally as the largest ones.
Grouping stores according to size of credit loss, it is brought
out that there were 133 stores with very small credit loss of less
than 0.2 per cent. At the other extreme were 50 stores with the
very high loss of 20 per cent or over. A few of the latter group,
no doubt, are being hastened into bankruptcy with such losses; the
rest of them will be able to stand the shock of such losses because
their credit business is a very small proportion of their total business.
BAD-DEBT IlossES OF INDEPENDEKT RETAII, GROCERY STOREs, PHILADELPHIA,
P.A., 1928
Stores having annual sales of — Stores º | Stores having annual sales of — Stores º
Less than $5,000---------------- : 150 8.3 || $100,000 to $219,999-------------- | 16 0.4

$5,000 to $9,999-------- 201 6.0 $250,000 and over--------------- 8 .. 2
$10,000 to $24,999---- 497 3.0 -
$25,000 to $49,999 ---- --, 153 ' 1.6 All stores----------------- | 1,077 1.5
$50,000 to $99,999-------- 52 .9
1 Total credit losses divided by total credit sales.
INDEPENDENT GROCERY STOREs of PHILADELPHIA, PA., GROUPED According To

SIZE OF CREDIT IOSS
[Credit loss computed by taking the ratio of bad debts to credit sales]
|
| Sales
-
| “...--- | | |
--
Per cent of loss * . Less $5,000 $10,000's25,000 $50,000 $100,000 $250,000
than to to to to to and
sº,000, $9.999 $24,000, $40,909. $99,000 $240,909, over
- i i
133' |6 24 8' 22" |

65 2 5 27 | 12 13
111 2 9 45 31 : 17
147 7 12 85 | 34 | 8
118 10 15 60 19 4
iží ič 20 ſo iń 1
177
149 #
39 , 49
54 §
31 194 2
1
50 24 13 11 2 :-------- |
1,07,
- -
iro 201" ºn |
is a |
USE OF CREDIT BUREAUS
A comparatively small proportion of grocery stores made use of

credit bureaus in carrying on their business. Out of a total of
1,073 stores giving information on this point, 60 used credit bureaus
and 1,013 did not.
4
The stores which used credit bureaus, taken as a whole, had a

lower average loss than those which did not. The average loss of the
stores which used credit bureaus was 0.5 per cent and of those which
did not, 1.9 per cent.
CREDIT Ioss of IRETAIT, GROCERY STOREs, PHILADELPHIA, PA., 1928, DISTINGUIs H
ING THOSE USING FROM THIOSE NOT USING CREDIT BUREAUS
Stores using credit Stores not using

bureaus credit bureaus
|--
Stores having annual sales of l Per cent Per cent
| of bad of bad
|Number debts
i
to |Number debts
credit
to
credit
l sales Sales
----
| - - -----
-—
Less than $5,000.----------------------------------------------- | 12 12.7 137 8.1
$5,000 to $9,999------------------------------------------------- | 11 : 5, 4 190 6.1
$10,000 to $24,900----------------------------------------------- 20 3.4 475 3.1
7 1. 0 145 1.7
6 .8 46 1.0
--------- i---------- 16 .4
4 . 2 4 ... 3
------------------------------------------------ | 60 5 1,013 1.9

|
CAUSES OF HUSINESS FAILURE
EXTENT OF FAILURE
The records of the United States District Court show that during
the period January 1, 1925, to April 1, 1929. 35 retail grocery stores
in Philadelphia passed through bankruptcy. Further, a study of the
records of nine wholesaling establishments showed that, on the aver
age, for every retail grocery store which failed and went through
bankruptcy there were four others which failed: that is, went out of
business with loss to creditors, but did not go through the courts. At
that rate there would have been 175 retail grocers which would be
classified as failures, according to the usual definition, for the period
of a little over four years covered in the survey.
In addition to the estimated 175 failures of these two types, there
were many retail grocers who failed to succeed and went out of
business of their own accord or were forced out, losing all or part of
their own capital but not involving any loss to their creditors. Al
though there are several thousand independant retail grocery stores
in Philadelphia. and the mortality rate—that is, the ratio of the
number of stores going out of business for all reasons whatever to
the total number doing business—was apparently high," all but about
175 went out of business without loss to their creditors, according to
our computation.
There are no associations or organizations in Philadelphia, such as
there are in many cities, which settle outside the courts the affairs of
grocery-store failures. In this city each creditor collects what he
can, and, of course, the debtor does not receive a release from his
unpaid obligations as he does in brankruptcy or as he sometimes does
1 I.etters were sont to the grocery stores of the city. using a 1927 city directory, and
20 per cent of them were returned with notations indicating that the stores addressed
were no longer in lºusiness.
5
when there is a more or less formal settlement between him and his
creditors acting as a group. Apparently the creditors seldom, if
ever, act jointly in effecting settlements in retail grocery failures in
Philadelphia.
In answer to the question, “What was done in the cases of failure
which did not go through bankruptcy!” various creditors replied:
“Customers disappeared and no settlement was ever made ’’: “No
settlement was made, the cases were put in the hands of collection
agencies: three case of the 35 paid some on their accounts, the others
paid nothing ”; “The cases of failure were given to our lawyers for
collection: the accounts of two-thirds of 40 failures were charged off
under profit and loss; one-third of the failures paid some on account
after they had secured other positions”; “The cases of failure were
put in the hands of our lawyer: nothing was collected on account.”
CREDIT LOSSES
A study of the 35 cases which passed through bankruptcy shows

that bad-debt losses in extending credit to customers were a major
cause of failure of two stores and a contributing cause of three others.
The owners of the first two stores realized that their trouble was due
to the fact that their money was tied up in grocery accounts which
they would never be able to collect. Their losses for 1928 were 10
per cent and 8.5 per cent of their credit sales, respectively. The losses
of the three other stores were 7.4, 5.4, and 4 per cent respectively. Our
studies so far indicate that the average credit loss of well-conducted
grocery stores is less than 0.5 per cent.
The annual sales of these five stores were $10,400, $7,800, $33,800,
$16,200, and $31,200, respectively, with an average of 78 per cent on
credit—a very much larger proportion of credit sales than the aver
age for small stores. A study of the credit business of 1,077 retail
grocery stores in Philadelphia, all going concerns, showed that the
stores with annual sales from $5,000 to $9,999 did 34.9 per cent of
their total business on credit: those with sales from $10,000 to
$24,999 did 35.2 per cent; and those with sales from $25,000 to
$49.999 did 41 per cent. Contrasting these percentages with those
of the bankrupts who failed on account of loose credit, it is noticed
that the bankrupt stores extended twice as much credit proportion
ally as the other stores of the same size.
The combination of a high credit-loss percentage and a large pro
portion of credit business is one to be avoided in the retail grocery
business. The margins in this business are small and this combina
tion will quickly produce net losses instead of not profits and will
lead to failure, as it did in the cases mentioned above.
EASY CREDIT FROM WHOLESALER TO RETAILER
There is a great deal of cooperative wholesaling in Philadelphia;

that is, the functions of wholesaling are performed by associations
of retailers. These associations extend credit to their members on a
weekly basis and penalize overdue accounts. The regular whole
salers also sell on a weekly basis as well as for periods of 30 days.
Taking the wholesalers as a group, credit apparently is extended
carefully and collections are watched closely. However, there is a
6
proof of leniency on the part of a few wholesalers, jobbers, and

manufacturers. Included in this group are wholesalers supplyin
retailers with meats, fruits and vegetables, butter and eggs, as well
as those handling strictly grocery products.
Leniency on the part of some wholesalers, jobbers, and manufac
turers is indicated by the number of grocers that fail—that is, go
out of business with loss to such creditors—and also by the amount of
losses involved.
A study of nine wholesaling establishments of various sizes showed
that the average number of failures per establishment among their
customers during the last year was 21. The smallest number
reported by any one wholesaler was 1 and the largest 50, which was
reported in two cases.
While the individual amounts involved are usually small, they are
not always so, and the total is quite large when the size of the retail
stores is considered. One grocery having annual sales of $26,000
failed, owing $4,047 to 18 different wholesalers, with $1,228 the
largest amount owed by anyone. The owner of this business also
owed very large amounts to other types of creditors. Another, with
annual sales of $18.200, failed owing $4,180 to 45 wholesalers. The
largest amount due to any one wholesaler was $446. He also was
indebted to other types of creditors. A third, with annual sales of
only $7,800, owed $1,428 to 29 such creditors, with $282 the largest
item. He likewise owed large amounts to other types of creditors.
The 33 bankrupts owed a total of $66.251 to wholesaling and manu
facturing establishments. The conclusion would seem to be that
some wholesalers and manufacturers are indulgent creditors. These
are large amounts when one considers the size of business, the fact
that these individuals were at the same time heavily in debt to other
classes of creditors, and that at the time of bankruptcy in eight of
the cases, including the three individual cases mentioned above, there
were absolutely no assets to cover even a small portion of this
indebtedness.
LOSSES IN REAL-ESTATE INVESTMENT AND REAL-ESTATE SPECULATION
If one were to list the causes of failure among retail grocers of

Philadelphia during the period January 1, 1925, to April 1, 1929, in
the order of their importance, with the possible exception of unscien
tific business methods and practices—which are forces hard to
measure—the facts would indicate that losses on real-estate invest
ments and speculations should be placed first. Some of these losses
were due to unwise purchases: others to a decided real-estate slump
which the individuals concerned could hardly have foreseen. Some
bought for the purpose of resale at a higher price, and thus were
speculating. Others bought for the purpose of renting or for
using the building as dwelling and store for themselves. In at least
11 of the cases which passed through bankruptcy, losses in real
estate were clearly a major cause. In four of these cases there was
nothing wrong with the grocery business, and the real-estate losses
were the only cause; but since the grocers were in business as indi
viduals rather than corporations, it was necessary to liquidate the
grocery businesses in settling their affairs.
In one case the grocer had bought an apartment house in Atlantic
City for a sum in excess of $100,000. It was heavily mortgaged
7
for short-term periods, and the owner went into bankruptcy on

account of his inability to renew the first mortgage.
In another case the grocer was forced into bankruptcy by his
inability to rent heavily mortgaged properties, which made it im
possible for him to carry them. He could not sell the properties for
enough to cover the face value of the mortgage, and, in addition,
he was liable on a bond given originally in connection with one of
these properties, which he had sold. On account of this liability
he had to repurchase the property, which had been allowed to depre- .
ciate.
In the third case a grocer had bought real estate for sums totaling
approximately $70,000 when prices were at their peak.
In the fourth case a mortgage was called on a building which the
grocer had once owned and conveyed, but since he was still liable on
a mortgage bond which he was unable to pay he went into bank
ruptcy to be relieved of his liability.
In the cases just mentioned there was nothing wrong with the
grocery business, and the real estate concerned was not involved in
the conduct of the grocery business.
In the remaining cases where real-estate losses were a factor con
tributing to failure, the real estate was used more or less in connec
tion with the business. The amounts owing on mortgages were
commonly from $16,000 to $38,000. In one of these cases the grocer
borrowed on third and fourth mortgages to secure cash that would
enable him to secure a second mortgage. In another he had a third
mortgage on a property on which he paid 30 per cent interest. The
owners’ equities in some of these transactions were so small that the
slightest decline in real-estate values caused trouble.
This information concerning losses in real-estate speculation or
investment indicates clearly that study of causes of failure should
extend over a long period of time. Over a period of 25 years such
losses probably would have been a minor factor in the failures of
these grocers, but during this 4-year period, in which a real-estate
slump occurred, real-estate losses were quantitatively the most
important cause.
FINANCING UNDER UNFAVORABLE CONDITIONS
At the time of their failure, 22 out of the 35 stores studied were

financing themselves in part with money borrowed at rates of interest
prohibitive for business purposes. However, financing under unfav
orable terms was not the original cause of the trouble in a single case.
At the time of entering business these grocers did not finance them
selves by such loans. The funds for organizing the businesses were
supplied mainly by the owners themselves, without borrowing. This
was the source of 67.8 per cent of the total capital at time of organi
zation.
While financing under such very high terms was not the original
cause of failure, it was an important contributing cause. A business
man paying from 18 to 36 per cent for his money obviously would be
hard pressed to succeed in competition with one paying 6 per cent.
In the grocery business where, as a rule, the profits are small, this
difference alone was enough to drive the merchants into bankruptcy,
since the amounts involved were large and the period of time over
which interest was paid was sometimes quite long. According to the
8
court records, one grocer, at the time of his failure, owed 10 different
companies a total of $4,938; another owed 8 companies a total of
$4,732. The total amount owed to loan or finance companies by the
22 stores using them as a source of capital was $43,736. In some
cases it was found that the grocer, in his petition, listed the face
value of his promissory notes rather than the actual amounts owed,
which were less than the face value on account of sums repaid. On
the other hand, it is probable that because of accumulated interest
charges the actual amounts owed in some cases were greater than
the face value of the notes.
The conclusion in regard to financing as a causal factor of failures
among Philadelphia grocers is that borrowing under prohibitive
terms when they were in difficulties from other causes added to the
original trouble and thus helped to bring on bankruptcy in 22 cases
out of the total 35.
Sources oF CAPITAL AT ORGANIZATION OF 30 BANKRUPT RETAIL GROCERY STOREs,

I?IIILADELPHIA, PA.
Stores |
Source n
!, ºfºfor |.. Amount
source Percent
of tº
| part of
capital |
- - -
- - -
–
From owner without borrowing--- 27 $50,700 67.8
Borrowed from friends or relativeS--- 6 6, 100 7.0
Assistanco from wholesalers and jobb 11 4,475, 5.1
Borrowed from loan or finance compani 2 1,300 : 1.5
Borrowed on life insurance------------ -- 1 80 ... 1
Fixtures purchased on installments--------------------------------- i 14 16,333 . 18.5
Total.-------------------------------------------------- ------> 30 87,988 100.00
IIABILITIES OF IłETAIL GROCERY STORES AT TIME OF BANKRUPTCY, PHILADEL

PHIA, PA.
Iºxcluding mortgages on real estate ($417,656) and liabilities incurred by indorsing notes for others ($36,015)]
"ratli
("reditor
§º
owing
typeeac
of Armount : P
Per cent
of total
creditor
l
Whole-alers, jobbers, and manufacturers 33 $66,251 | 31.6

Loan or finance companies. --- - - - - - - - - - 22 43, 736 20.8
(‘ommercial banks.-- - 13 12,441 i 5.9
Individuals-----. - - - - - - - - - - - - - - 27 58, 164 27.7
Equipment dealers (installment plan).---- - - - - - - - - - ---------- - 3 | 1,755 | .9
Morris-Plan banks---------------------...----- - - - ------------- 4 | 312 .. 2
(other, includin:g Ireferred debts such as taxes and rent - - - - - - - ------ 31 27, 286 12.9
INEXPERIENCE
Inexperience was, no doubt, a cause of failure in some instances,

but out of a total of 26 for which information on previous occupa
tion was obtained, 20 had been previously connected with the grocery
business: 7 had been grocery clerks, 11 had been in the business as
owners, 1 was a salesman for a wholesale house, and 1 was manager
of a grocery business. It is thus evident that a high percentage
had an opportunity to learn something about the business before
entering it. The occupations of the six who had no previous ex
9
perience in the grocery business were wool sorter, peanut vender,

shoemaker, meat cutter, merchant tailor, and laborer—occupations
which hardly prepared these individuals for careers as retail grocers.
The average length of time these persons were in the businesses
which failed was 4.2 years. Five of them failed within a year,
while three were in business for 17 years or more. The average
length of time these individuals were in any kind of business as
owner, including the time spent in the businesses which failed, was
9 years.
Since failure, 17 out of the 26 have again become connected with
the grocery business; 6 of them are grocery clerks, 5 are in business
for themselves, 1 is a buyer, and 5 are managers.
In securing credit information from 1,371 independent retail gro
cery stores in Philadelphia, all going concerns, information on
previous occupation of these merchants was obtained. Out of a total
of 1,371 it was found that 167 had been grocery clerks, 184 had been
managers or owners of retail grocery stores, 136 had been managers
or owners of retail businesses other than grocery stores, and 740
had no previous connection with the grocery trade. The last group
had been employed previously as barbers, bakers, butlers, book
keepers, boilermakers, and others. A total of 144 either reported
themselves as having no previous occupation or gave no information
on this point.
In view of the fact that more than half of those engaged in the
retail grocery trade as owners had no previous experience, it is
somewhat suprising that there are not more of them in bankruptcy.
The answer in many cases probably lies in the strict credit methods
of the wholesalers. The fact that, on the whole, credit is granted
carefully and collections watched closely in Philadelphia probably
means that many of the inefficient are forced out before they can
be classed as failures.
UNSCIENTIFIC BUSINESS METHODS AND PRACTICES
Unscientific business methods and practices are forces which can

not be measured easily and set forth in statistical form, but they
were important causal factors among Philadelphia grocery failures.
Most of these business men kept no records. Many of them never
took an inventory. Very few of them ever had given consideration
to the relative costs and profits of the various commodities sold.
One of them had difficulty in counting and in making change and
made many mistakes. Another used poor judgment in signing a
long-term lease of a store building at an exorbitant rate. Eleven out
of 26 had been owners of grocery stores previously, but apparently
did not learn much from experience: 5 of the 26 are now engaged in
their third enterprise as owners of grocery stores. In one of the
five cases just mentioned all the facts indicated that this factor was
the cause of the bankruptcy, and yet this man found suſlicient sup
port among the necessary creditors to put him back in business
again within a short time after his failure.
COMPETITION
In a number of cases the grocers who had failed said their trouble
was due to competition, particularly chain-store competition. One
had stores on both sides of him which took most of his business;
10
another said that competition was so keen that even the chain stores
were giving credit, the manager doing it at his own risk. In some
cases the manager made deliveries in his own car. In other instances
delivery was made by schoolboys whose services were made available
by the manager but were paid for by the housewife. That competi
tion was keen there is no question; but it is also true that where com
petition was keenest, some stores, including independents, were doing
good business and apparently were prospering.
DISHONESTY
In none of the cases included in the present study was there any
attempt by creditors to recover any alleged preferences or to reveal
any concealed assets. In at least one case the bankrupt was found
to be in business again across the street from his former location
before obtaining his discharge, but the source of his capital was not
learned. It is possible that dishonesty entered into this case, but
there is no evidence to this effect except the fact that the man.
presumably almost penniless, had money of his own or had been able
to secure credit even before his discharge in bankruptcy. In several
other cases the bankrupt continued in business almost without inter
ruption at the same stand at which he failed; in some instances he
was helped by friends and relatives and no inference should be
drawn.
COSTS OF ADMINISTRATION OF BANKRUPT GROCERY STORES
A detailed statement of the costs of administering the bankruptcy

proceedings of 18 grocery stores is set forth in tables on pages 11 and
12. These 18 cases represent all that were adjudicated and closed
within the period January 1, 1925, to March 30, 1929.
The facts show that in only one case a dividend was paid to
creditors. This dividend of 13.09 per cent of liabilities was paid 9
months and 18 days after the petition in bankruptcy was filed.
Out of the total of 18 cases, 8 were “no assets " and 10 “asset"
'ases. A no-asset case is one in which no property other than that
advanced to indemnify the referee for expenses was subjected to the
jurisdiction of the court. All the no-asset cases were voluntary
bankruptcies, whereas of the 10 asset cases, 6 were voluntary and 4
involuntary.
An analysis of costs of administration shows that in the 10 asset
‘ases, attorneys’ fees were 43.5 per cent of the total costs; the portion
paid to the referees for commissions, fees, and expenses was 18.4
per cent: receivers’ and trustees commissions were 7.2 per cent;
appraisers’ fees, 7.6 per cent: and other expenses. 23.3 per cent.
In the no-asset cases, except for an item of $19 in one case, $15 of
which was an appraiser's fee, the referees’ expenses constituted the
total costs. The average expenditure in the no-asset cases was $45.58.
The highest expenditure for referees expenses in any case was $60.35
and the lowest $32.95. These sums, plus the amounts the bankrupts
paid to their attorneys, which amounts in most cases were not
recorded in the schedule of assets, were the total costs of going
through bankruptcy for the no-asset cases.
The average length of time elapsed from the date the petition was
filed to the date the discharge was granted in the no-asset cases was
5 months and 29 days. In the asset cases the average interval was
1 year, 2 months, and 14 days.
11
It is interesting to note that in five cases no discharge was re

quested and consequently the bankrupts in those cases were not
absolved of their debts. In those cases, therefore, though the bank
rupt surrendered all his assets for liquidation, he still remains liable
for his unpaid obligations.
If these 18 cases studied are judged by their liabilities, one could
not say they were small stores, as the 8 no-asset cases had scheduled
liabilities of $195,338 and the 10 asset cases $91,599, making a total
of $286,937, an average indebtedness of $15,940. However, if they
are judged by property subjected to the jurisdiction of the court, they
were small affairs, indeed, as the total amount disbursed in the pro
ceedings for the 18 stores was $6,385, an average of only $354 per
store.
ANALYSIs OF Costs of ADMINISTRATION OF 10 BANKRUPT GROCERY STOREs,
PHILADELPHIA, PA.
[Representing all “asset” cases adjudicated and closed, Jan. 1, 1925, to Mar. 30, 1929]
|
Por Case Case | Case | Case
Item Total cent No. 1 No. 2 | No. 3 | No. 4
- - ----------- - - - - - - - - -- - - - - - ---
Final disposition of assets:

Total cost of administration------ - - - - - - - - -------- $3,902
Bankrupts' exemption - - - - - - - - 1,015
Prior, secured, or lien creditors.------, --- - - 136
General creditors (per cent of dividend 13.09). - S63
Other payments----------------------------------- - 15
Total amount disbursed in the proceedings.----- 6,021 100.0 623 t 124 570 410
A mount paid to referee: l
Fees for filing claims------------------------------ | 29 * -------- 2 3 1

Commissions ------------------------------------- t 29 7 () 1 0 --------
Expenses— i I
Advertising------------------------------- ! 68 1.7 7 (; 7 7
Oſſice quarters - 145 3.7 13 | 15 10 15
Clerical aid------------------------------ - 324 8, 2 38 21 18 27
Other expenses
Receiver's commission--------------------...----------- i
137
188
3.4 ||-------- i
4.7 35
6
7
12
33
3
24
Trustee's cominission ------------- -...--------------- - 99 2.5 ------------------------ !--------
Appraiser's ſees--------------------------------------- 303 7.6 30 45 | 730
-Attorney's ſees---------------------------------------- 1, 736 43.5 75 -------- 200 175
Other expenses---------------------------------------. 930 23.3 119 59 148 127
Total cost of administration.-------------------- 3,988 1000 || 323 |

12 || 482 i
400
Schedules liabilities-------------- -------------------- 91, 596 --------
l
6, 795 | 3,776 1,693 5, 201
|
Item Case | Case | Case Case | Case | Case
No. 5 | No. 8 No. 9 | No. 13 | No. 14 | No. 18
Final disposition of assets:

Total cost of administration---------------------- $668 $713 $532 $149 $325
Bankrupts' exemption - - - - - - - - - - - - - - 16 300 130 230 |--------
Prior, secured, or lien creditors. . . . . . ;------...----- 101 ---------------- |-------- i--------|--------
General creditors (per cent of dividend, 13.09) -----|--------|-------- 863 ------------------------
l I
I
Total amount disbursed in the proceedings ----- 368 684 1, 876 662 379 325
Armount paid to referee: I t
Fees for ſiling claims------------------------------ 3 8 4 3 2 3

Commissions-------------------------------------- 4 -------- | 9 |-------- 1 2
t
Expenses— |
Aivertising------------------------------- 7 7 | 7 7 | 6 7
Oſlice quarters---------- ----------------- 15 12 20 15 15 15
Clerical aid------------------------------- 28 48 - 34
- 53 18 39
Other expenses---------------------------- 12 41 26 18 8 11
Receiver's commission
Trustee's commiss
Appraisers' fees
Attorneys' fees----------------------------------------
Other expenses---------------------------------------- 81 153 | 81 44 18 100
Total costs of administration-------------------- 268 667 713 531 147 324
Scheduled liabilities----------------------------------- 2,457 || 9,864 | 11,071

|
23,935 | 14, 548 || 12, 256
12
ANALYSIs of ("osts oF ADMINISTRATION or EIGHT BANKRUPT GROCERY STOREs,

PHILADELPHIA, PA.
[IRepresenting all “no asset ” cases adjudicated and closed, Jan. 1, 1925, to Mar. 30, 1920]
Item
:
i Total -
| Per cent Case10
No. Case11
No. Case15
No.
Total amount paid to referee: |

Fees for filing claims----------------------------- $8 2, 33 $2 '---------- $1
Expenses: i -
Advertising----------------------------- - 7 $7 7
Oſlice quarters 12 7 5
Clerie'll aid-- 20 31 18
Other expens 9 2 2
Total cost of administration 59 47 33
Scheduled liabilities-------------------------------- 16,744 36,595 4,597

------ ---
-- -- -- --- - ---
=
ltern Case ("ilso (lase ('ase Case
º | No. 16 No. 19 No. 20 | No. 21 | No. 22
-
Total amount Iraid to referee: ! |

Fees for filing claimils--------------------------------------- $1 $1 ---------- $3
IExpenses: l
Advertising----------------------------- $7 t S : $8 8
()ffice qu'uters 8 5 I 5 5
("lorical aid---- 12 33 20 22
Other expenses 6 3 | 14 12
Total cost of administration.----------- | 33 50 42 | 50

|– — -
Scheduled liabilities--------------------------------- i 13, 305 34,549 | 46, 564 | 40,356

- ... I - ----' - - -
TIME IREQUIRED FOR ADMINISTRATION OF 18 IRANKRU'PT GROCEIRY STOREs, L’HILA

DELPHI.A., P.A.
“.ASSct” cases - “No asset” cases
I
|
"in a Nº. l Dividend
Case No. l I)ischarge Case closed, declared Discharge Case closed
Yr. Ino. d. Yºr. Yºr. mo. (l.

15 ()
0
1
•)
()
()
1
1
0
0
1 Referee died during administration of case.

Date Due
DEMCO No. 38 - 298

||||||||||
THE
D AISL
8 04
|| SECT SHLF SI
06 8 008: 0

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H `... BUREAU_QF FOREIGN AND DOMESTIC COMMERCE

ñRED-FRUIT INDUSTRY AND TRADE

Trade Information Bulletin No. 676

covernment PRINTING OFFICE

For sale by the Superintendent of Documents, Washington, D.C. - - - - Price 10 cents

As one of the regions where the production of fruit is increasing,

No figures are available as to the total production of dried fruit

It is probable that in the case of apricots, now the principal dried

[In thousands of pounds]

January- January- Kind January— January–

"Less than 500 pounds.

WaS sº i.hese figures

Golden Valley near Somerset East. According to the latest figures,

Raisins.—The failure of the raisin crop was due primarily to the

The depression resulting from these stocks, and untimely rains

12,000,000 pounds of fresh fruit, which should produce 2,400,000 of

Apricots ----| 4, 500,000 || 3, 500,000 750,000 400,000

Quality.—The quality of the 1928–29 crop of dried fruit was, on

The general tone of the South African dried fruit industry is

per tray of 50 pounds of fresh fruit. There is every indication

At present prune orchards are continuing to be uprooted and re

('urrants.-The production of currants in South Africa is pri

EXPANSION OF FRUIT-GROWING AREA

The question of the expansion of the dried-fruit industry in South

important factor in the condition and the salability of the product

The interest of the South African dried-fruit industry is at present

Kind 1927 1928 | Kind 1927 1928

1,089,211 | 1,073,358 Tamarinds----------------

Import statistics for 1929 are not available. However, during

The bulk of the South African fruit imports is made up of dates,

There is every indication that the market for prunes, in South

Agitation is developing for an increase in the duty on dried fruit.

Kind 1924 1925 1926 1927 1928

Rasins----------------------------------------------- 2,964 4,334 1,425 21, 837 66, 123

The statistics for 1928 indicate two important outstanding fea

REGEIVED OF FOREIGN AND DOMESTIC COMMERCE

THE MARGARINE INDUSTRY

Trade Information Bulletin No. 677

GOVERNMENT PRINTING OFFICE

For sale by the Superintendent of Documents, Washington, D. C. - - - Price 10 cents

The European margarine industry has become increasingly im

The consumption of margarine is steadily on the gain in the United

[In thousands of pounds]

Country 1913 1920 1924 1925 1926 1927 1928

(2) 1358, 400 (2) (2) (2) 1448,000

! Estimate, but closely approximate. * Preliminary. 5 Unofficial.

Vegetable oils or fats comprise a much more numerous category

The growing scarcity and rising cost of animal fats in Great

PRODUCTION, IMPORTS, AND CONSUMPTION OF MARGARINE AND ARTIFICIAL BUTTER

1 188, 160 170,049 | 358, 209 7.76

1448,000 133.51% 571, 512 13. 28

The largest consumer of margarine in point of volume is Germany,

A production slump occurred in 1923, owing to the prevailing bad

PRODUCTION, ExPORTS, IMPORTS, AND PER CAPITA CONSUMPTION OF MARGARINE IN

Thousands of pounds Per capita

Year Fººd | Exports | Imports

The high per capita consumption of margarine in Denmark—the

of all raw-material requirements in 1921. Since that year, though,

The headquarters of the Margarine Union is in Netherlands,

the figure given for production. It is believed that certain quanti

194, 937 151,646 |------------|------------

The industry of margarine churning supports 40 Norwegian fac