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Venezuela, an economic report

Part II Student Reports (continued 3)

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Galtineros 34.56 1,150.00

Putachulo de la Paja 38.58 1,257.00

Palo Grande 55.20 1,525.00

San Cristobal 76.20 825.00

Highway from Cumaná to Cumanacoa (In Construction)

Cumaná 0 16.00

Puerto de la Madera 7.00 45.00

Los Ipures 12.00 105.00

Mochima 20.00 121.00

Cedeno 36.00 166.00

San Fernando 48.00 212.00

Rio Arenas 52.00 215.00

Cumanacoa 56.00 230.00

Highway from Barquisimeto to El Tocuiyo

Barquisimeto 0 556.00

Quibor 39.00 720.00

El Tocuiyo 69.00 617.00

Highway from El Pao to Barinas

El Pao 0 160.00

San Carlos 57.12 150.00

Acarigua 133.12 186.00

Ospino 179.74 184.00

Guarne 230.75 183.00

Barinas 318.15 180.00

Highway from Charallave to San Casimiro

Charallave 0 307.00

Cua 13.00 240.00

San Casimiro 39.50

Highway from San Fernando de Apure to San Juan

San Fernando 0 730.00

Achaguas 78.12 83.00

San Juan 141.25

Highway from San Felix to Turmero

San Felix 0 20.00

Apata 57.50 293.00

Guasipato 160.00

Turmero 220.00

Highway from Coro to Cumarebo

Coro 0 1,798.00

La Vela 5.00 120.00

Cumarebo 43.00 13.00

Highway from Barquisimeto to Carora

Barquisimeto 0 566.00

Banco de Baragua 45.00

Rio Tocuyo 86.00

Carora 116.00 409.90

Highway from Turjillo to Motatan

Turjillo 0 800.00

La Plazuela 4.00 592.00

Pampanito 14.00 385.00

Motatan 36.00 324.00

Highway from Barcelona to Soledad

Barcelona 0 13.00

Cuataquiche 29.60

San Mates 57.60 153.00

Aragua de Barcelona 102.40 110.00

La Canoa 285.00

Mouchal 308.60

Campo a Legra 332.00

Soledad 359.30

Highway from Las Adjuntas to Colonia Tovar

Las Adjuntas 0 970.00

Macarao 3.00 1,000.00

Palo Negro 6.30

Alto de No Leon 19.30 2,100.00

Alto de Lagrenazo 25.30 2,330.00

Colonia Tovar 32.30 1,802.00

Highway from Lolonia to El Consejo

Colonia Tovar 0 1,802.00

Portero Perdido 3.00 1,680.00

Topo Carrizalito 9.00 1,910.00

Caserio Quebrada 19.00 1,590.00

El Consejo 25.00 576.00

Highway from La Colonia to La Victoria

Colonia Tovar 0 1,802.00

Alto de Launita 5.50 1,680.00

Alto Gabante 10.00 1,910.00

El Pinto 20.00 1,756.00

Hacienda 22.00

Hacienda Sabaneta 23.40 600.00

La Victoria 27.90 576.00

The charge for freight on the railroads is rather high, $.58 per hundred pounds, and the passenger rate averages 10c. per mile. Hotel accommodations are not scarce nor are they excessive in prices. Statistics show that European commercial travelers can live on $3.50 to $4.00 per day while it costs the average American $7.00 per day. The hotels are not as modern as in the States but are very clean and suitable. The food is exceptionally good and wholesome.

The means of transportation by automobiles are as modern as those of some of the largest cities of the world. The majority of the cars are high priced and high powered as they are designed to climb to high altitudes in the surrounding mountains.

It may be stated that the financial condition of Venezuela is superior to that of any other country in Latin-America with the exception of Argentina. Her public debt has been decreased and her financial standing, although established comparatively few years ago, is very high.

Germany, France and England prior to the war practically had a monopoly on the Venezuelan trade, due largely to the long credits offered by them to the Venezuelan merchants. Before the war the above mentioned countries extended credit from four to nine months. The policy has changed now and the merchants are satisfied with from three to four months' credit. The reduction of the long term credit is also due to improved banking methods, and it is expected that trade will soon reflect the change when conditions are settled.

At the present time many of the exporting houses in the United States are dealing on either a 90 day sight draft or a 120 day draft dated New York. This system has been approved by the Credit Association of America.

Since practically every exporting or importing country is represented in Venezuela at the present time by bank affiliation, the average commercial traveler encounters very little difficulty in having his drafts or letters of credit honored. The difference in rate of exchange is an important item and should be carefully considered by all commercial travelers upon arriving in Venezuela. The exchange fluctuates slightly, the rate now being $5.35. The standard of value is the bolivar, valued at $.193, American gold.

One of the most exasperating difficulties confronting all commercial travelers is their ignorance of the metric system. The system has always been in effect here and must be learned in order to transact business.

The customs duties of Venezuela are very high, more so than in many other Latin-American countries. The high protective tariff has been a means of increasing the revenue of the country but on the other hand it has made it practically impossible for the poorer classes of Venezuela to purchase foreign made goods. Another purpose of the high protective tariff is to protect home industries but the fact remains that the manufacturers in Venezuela can not supply the demand. In many cases the tariff is so high that it is inadvisable for outside merchants to attempt to do business there. For example, it would be very poor business judgment for a shoe salesman to attempt to sell shoes in Venezuela as that industry is well protected by the tariff. The same applies to many other industries. Appeals have been made to the Venezuelan government to lower the tariff but as yet it has not complied with the request. Tobacco is another protected industry. American cigarettes in Venezuela retail for as much as three times the price in the States. The reduction of the tariff will open a greater field for all commercial travelers and will mean an increased foreign trade for Venezuela.

Before concluding this report it may be useful to say a word regarding the present opportunities for commercial travelers in Venezuela and the attitude of merchants in that country as to American travelers. The writer has visited Maracay, Caracas, Valencia and La Victoria, and after talking with business men reached the conclusion that American commercial travelers are considered among the best and are most welcome. The only complaints heard were that American concerns would not allow more than a three months' credit and that the packing of goods for shipment has been deplorable. The Englishman with his great variety of goods such as woolens, cottons, crockery and with facilities for long credit has gained the confidence of the merchants and has built up considerable trade throughout the country. Germany prior to the war also had considerable trade with Venezuela due to their banking facilities and diversity of products. Before the war, for example, Germany had a monopoly on the dye industry and the toy industry and was thus able to establish herself successfully in Venezuela. American business houses prior to the war had not realized the importance of Venezuelan trade until the establishment of the International High Commission, an organization which has brought South America and North America into closer contact and thus assured friendly relations.

The old proverb has it that "Commercial travelers are here to-day and away to-morrow." As the proverb is undoubtedly true, the only way to leave a favorable impression with all is to smile, be courteous, considerate and clean, not only in business transactions but in morals as well. The possession and exercising of these social qualities will be of inestimable advantage not only to commercial travelers but to the good name of the United States.

W. J. Donnelly.

PRESENT FOREIGN INVESTMENTS IN VENEZUELA AND FUTURE OPPORTUNITIES FOR AMERICAN CAPITAL

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