The importance of commercial travelers not only as representatives of business concerns, but also as types of a given nationality, has at last been realized and they are being treated as important factors not to be overlooked by corporations or the nation in the formulation of trade policies. They are the spokesmen of their countries and from their lips and by their actions a nation is sometimes judged not only from a business but also from a political standpoint.
The importance of this factor was realized but by few nations before the war, and the nations fortunate enough to appreciate their importance readily provided means for improving their service. The United States of Venezuela and the United States of America were among the nations which had been slow to realize the benefits that could be reaped from commercial travelers for their respective countries. However, once they had realized the necessity, Venezuela and the United States signed a treaty, effective July 3, 1920, which greatly benefited the travelers of all countries and also testified to the influence of their service.
The convention also impressed upon the business houses in both countries, and demonstrated the fact, that commercial travelers are the criterion by which concerns and countries are judged in foreign countries. Representation in overseas commerce requires men of skill and character and without these two qualities no traveler can ever succeed.
Venezuela is one of the best fields in South America for commercial travelers, as the nation is very rich and has a high standing in the financial world. The natural resources are innumerable and rich, as can be readily realized from the number of countries competing for investments and monopolies at the present time. The large amount of money in circulation and the importance of Venezuelan markets in the export trade has encouraged export houses throughout the world to send representatives to study conditions and eventually place their products in that market.
In order for commercial travelers to rightfully represent their principals they must be fully acquainted with climatic, politicaland legal conditions in Venezuela. The legal requirements for commercial travelers are few and by far less stringent than the laws of other Latin-American countries. Commercial travelers coming to Venezuela are not required by law to present any document other than their passports. No power of attorney is necessary, but it is advisable to have it in case it should be required in business transactions. A letter from the home office of the traveler or from some well established exporting or importing house is not necessary but advisable as a medium of introduction to the prospective buyers.
The recent convention signed between the United States of Venezuela and the United States of America has slightly changed previous customs. The object of the convention was that both countries might encourage commercial relations and increase business by facilitating the activities of commercial travelers. The convention provided for a license in both countries but as yet that provision of the convention has not been complied with and the prospects are that the old custom requiring no licenses will remain in effect.
There are no baggage restrictions, but, as the means of travel are limited in some parts of the country, it is advisable that the traveler confine his baggage to as small a trunk as possible.
In customs treatment of samples it is necessary to follow the provisions of the recent convention:
1. All samples which have no commercial value shall be admitted free of duty.2. All samples shall be considered without value when they are stamped or rendered unusable.3. Merchandise having commercial value shall be admitted provisionally, security having first been given for the customs duties and with the understanding that they leave the county within a period of six months.4. Duties shall be paid on that part which shall not be exported.
1. All samples which have no commercial value shall be admitted free of duty.
2. All samples shall be considered without value when they are stamped or rendered unusable.
3. Merchandise having commercial value shall be admitted provisionally, security having first been given for the customs duties and with the understanding that they leave the county within a period of six months.
4. Duties shall be paid on that part which shall not be exported.
Means have been provided at all principal ports in Venezuela for the immediate clearance of samples so as not to delay the commercial travelers. Samples usually receive consideration immediately after personal baggage and in some cases they are first.
In connection with advertising matter it is interesting to note that catalogues are admitted free; but the term is strictly construed. Pamphlets and advertising matter in general, includingcalendars, are dutiable at $1.37 per hundred pounds gross weight. Advertising matter with lithographed or printed designs not bearing the name and legend of the advertiser is dutiable at $17.13 per hundred pounds gross weight.
Practically all exporting countries are transacting business with Venezuela at the present time. America ranks first with Spain and England second and third respectively. Competition is keen, due to the fluctuation of the foreign exchange and the manufacture of goods. The American commercial travelers are excellent salesmen and thoroughly understand their products. The appearances, personalities and ways of the Americans are very popular in Venezuela, but the English and German travelers are very efficient and have considerable influence.
Before a commercial traveler can successfully sell goods in Venezuela he must understand Spanish. It is necessary to know not only the words but also the construction of the language. Many commercial travelers have failed in their attempts to sell goods due to the fact that they possessed only slight knowledge of the language, which is not alone a fault of the travelers but also of the houses they represent. The German nation was the first to realize that the knowledge of Spanish was indispensable to commercial travelers; knowing that this essential was the basis of business success in South America, the various German concerns prior to the war established schools where they instructed their agents in the language and customs of the countries to which they were to be sent. Offices were opened in the principal cities of various countries and agents sent to them where they remained for fully a year learning the business customs and language, and after mastering both they were given positions as commercial travelers. Consequently the Germans successfully entrenched themselves in numerous countries and were enabled to compete with every advantage in export trade. But many American travelers have neglected to learn Spanish, preferring to talk their own language whenever possible.
The national customs of Venezuela are naturally different from those of the United States and other countries. Business customs, too, are different and so are the customs of the home. It is easy to become used to them and onemustknow them in order to transact business. In some parts of the countrybusiness would seem to be a secondary consideration, social life ranking first, which of course is contrary to the habits of thought in the United States and many European countries.
It is advisable, too, that we consider the variations in climatic conditions in Venezuela and the effect of such conditions on the demand for goods in general. In order intelligently to understand the situation it will be necessary to know the climatic features of each important city.
Caracas, the capital of Venezuela, has a splendid climate, invigorating and refreshing, somewhat similar to that of Los Angeles, California. The days are rather cool with the exception of mid-day which, of course, is very warm. Light-weight clothing is worn during the day while at night medium-weight clothing is preferable. As Caracas is the capital, there is a steady demand there for fashionable clothing. Aside from clothing, many other products are in demand such as drygoods, machinery of all descriptions, autos, hardware, etc. The same products are generally needed in all other cities. The intensity of the heat in Valencia, Maracaibo, Maracay and Ciudad Bolívar allows only light-weight clothing to be worn.
Commercial travelers should acquaint themselves with conditions in all cities and must carefully study the demands for their products. The market for machinery is greater in Caracas than any other city in Venezuela. The demand for farming implements is greater in Valencia than elsewhere. Mining machinery is needed in Maracaibo and surrounding cities where the various mines are located. Dry goods are in demand throughout the country districts. Regardless of the size of the city one can find American goods everywhere. The quality of the goods outranks that of other countries and, moreover, there is a strong feeling of friendship on the part of the Venezuelans in favor of America and American goods.
One of the frequent complaints uttered to American commercial travelers is directed against American methods of packing goods for shipment. During the last two years the majority of American exporting houses sending goods to South America have neglected proper packing with the result that the goods are often received in woefully poor condition. Although a small item, it is of prime importance from the standpoint of the importer and a hindrance to the success of commercial travelers.
We have enumerated the legal requirements and personal duties of commercial travelers and have also mentioned the market. It will be helpful to point out the means of transportation and communication in Venezuela. Companies that have never sent commercial travelers to Venezuela have a wrong impression as to the means of communication and transportation. The roads are excellent and in some cases surpass those in the United States and other countries. The railroads, although not as modern as the roads in the United States or Europe, are well capable of carrying passengers and freight up and down the high mountains. In some cases in Venezuela, a train will ascend from sea level to an altitude of 12,000 feet. There is herewith submitted a complete list of the railroads, showing destinations and number of stations. There is also attached a complete list of the roads showing distances between principal cities en route, the outline further showing the altitude of each city.
[Railroad facilities may be found enumerated on pp.69-70.]
The following list of the roads and highways in Venezuela show the distances between cities and the altitudes of the respective highways:
Highway from Caracas to ValenciaDistance(Kilometers)Altitude(Meters)Caracas (Plaza Bolívar)0920.00Antimano9.30937.00Los Adjuntas14.10970.00Les Teques24.301,168.00Los Teques (Llano de Miquilen)25.301,172.00Guayas44.30470.00Las Tejerias46.80500.00El Consejo57.50576.00La Victoria65.60576.00San Mateo75.20479.00Turmero83.70564.00Maracay97.90450.00San Joaquin113.70440.00Guacara122.80430.00Los Guayos141.30440.00Valencia148.80470.00Highway from Caracas to La GuairaCaracas (Plaza Bolívar)0920.00Agua Salud2.50935.00Catia4.00960.00Blanden7.15839.00Cantinas9.23871.00Pauji15.201,004.00Las Trincheras16.26941.00El Copey19.70770.00Civucutti26.38475.00Manonga29.38215.00Marquetia32.3840.00La Guaira34.788.00Highway from Caracas to GuatiroCaracas (Plaza Bolívar)0920.00Quebrada Honda3.15880.00Sabana Grande4.15870.00Chacaito4.90860.00Los Ravelos5.90870.00Chacao6.90880.00Los Dos Caminos9.25860.00Petare (Plaza)12.50840.00La Cortada del Respiro18.00960.00Quintana23.00761.00Caucaquita25.00690.00El Agaucate26.50641.00Ochoa29.80563.00Mampete35.00489.00El Cercado38.50443.00El Tamarindo39.70425.00Guarenas45.35396.00Guatire52.35335.00Highway from Caracas to Ocumare del TuyCaracas (Plaza Bolívar)0920.00Puento de Hierro sobre el Guairel1.75879.00El Valle (Plaza)5.35889.00Coche8.55901.00Bermúdez10.25920.00Gato Amarillo11.65908.00Bejarno14.15Prim16.751,005.00Cortado del Guayabo18.151,150.00Maitana24.651,229.00Maturin36.50669.0Buena Vista38.20736.00Charallave41.50692.00Cantarrana52.00307.00Vallecito61.50210.00Ocumare del Tuy70.20210.00Highway from Maracay to Ocumare de la CostaMaracay (Alcabala)0425.00El Diamente22.30431.00El Limon5.30453.00La Quesera6.00460.00Guamitas14.00720.00Guacamauyas17.40871.00Piedra de Tranca22.001,045.00Rancho Grande23.001,085.00El Portachuelo24.001,120.00Periquito30.00845.00El Salto34.00660.00Tio Julian39.00405.00La Tulla44.30143.00Cansa Macho45.00123.00Aponto47.0088.00Pueblo Nuevo52.6040.00Ocumare de la Costa53.3030.00Caserio de la Boca57.903.00Puerto de Ocumare de la Costa58.702.00Highway from Llano Cagua to San Fernando de ApureCagua0472.00Ciudad de Cura20.00556.00San Juan de los Morros45.00Uverito76.00Parpara83.00556.00Ortiz94.00Los Dos Caminos100.00Morrocoyes120.00El Rastro153.00Calabozo175.00San Fernando Apure334.0073.00Highway from Valencia to Puerto CabelloValencia (Plaza Bolívar)0470.00Camoruco1.00478.00Mayuanagua7.80490.00El Retobo9.80Barbula12.30La Entrado15.30595.00Las Trincheras20.80360.00El Cambur30.8070.00Taborda40.30El Palito42.303.00Puerto Cabello (Plaza)53.601.00Highway from Valencia to NirguaValencia (Plaza Bolívar)0470.00Bejuma52.25662.00Miranda69.50625.00Salorn85.25768.00Nirgua100.50793.00Highway from Valencia to San CarlosValencia (Plaza Bolívar)0470.00Tocuyito17.00450.00Tinaquello50.00423.00El Tinaco78.75143.00San Carlos98.75150.00Highway Central from the Táchira to San CristobalEstacion Táchira del Gran0370.60Colón18.00800.00Angostura del Lobaterita27.30815.00Galtineros34.561,150.00Putachulo de la Paja38.581,257.00Palo Grande55.201,525.00San Cristobal76.20825.00Highway from Cumaná to Cumanacoa (In Construction)Cumaná016.00Puerto de la Madera7.0045.00Los Ipures12.00105.00Mochima20.00121.00Cedeno36.00166.00San Fernando48.00212.00Rio Arenas52.00215.00Cumanacoa56.00230.00Highway from Barquisimeto to El TocuiyoBarquisimeto0556.00Quibor39.00720.00El Tocuiyo69.00617.00Highway from El Pao to BarinasEl Pao0160.00San Carlos57.12150.00Acarigua133.12186.00Ospino179.74184.00Guarne230.75183.00Barinas318.15180.00Highway from Charallave to San CasimiroCharallave0307.00Cua13.00240.00San Casimiro39.50Highway from San Fernando de Apure to San JuanSan Fernando0730.00Achaguas78.1283.00San Juan141.25Highway from San Felix to TurmeroSan Felix020.00Apata57.50293.00Guasipato160.00Turmero220.00Highway from Coro to CumareboCoro01,798.00La Vela5.00120.00Cumarebo43.0013.00Highway from Barquisimeto to CaroraBarquisimeto0566.00Banco de Baragua45.00Rio Tocuyo86.00Carora116.00409.90Highway from Turjillo to MotatanTurjillo0800.00La Plazuela4.00592.00Pampanito14.00385.00Motatan36.00324.00Highway from Barcelona to SoledadBarcelona013.00Cuataquiche29.60San Mates57.60153.00Aragua de Barcelona102.40110.00La Canoa285.00Mouchal308.60Campo a Legra332.00Soledad359.30Highway from Las Adjuntas to Colonia TovarLas Adjuntas0970.00Macarao3.001,000.00Palo Negro6.30Alto de No Leon19.302,100.00Alto de Lagrenazo25.302,330.00Colonia Tovar32.301,802.00Highway from Lolonia to El ConsejoColonia Tovar01,802.00Portero Perdido3.001,680.00Topo Carrizalito9.001,910.00Caserio Quebrada19.001,590.00El Consejo25.00576.00Highway from La Colonia to La VictoriaColonia Tovar01,802.00Alto de Launita5.501,680.00Alto Gabante10.001,910.00El Pinto20.001,756.00Hacienda22.00Hacienda Sabaneta23.40600.00La Victoria27.90576.00
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. Beforethe 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 thetariff 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.