It is to be remembered that practically the whole of the transportation arrangements in Central America, Salvador excepted, are in the hands of Americans, whose carefully arranged Pan-American Railway System is now fast approaching practical realization. When completed, it will be possible to journey from New York to Panama without change of car, and what this means for quick and cheap freights can be realized. In all probability there will be severe shipping competition to meet with, however, more especially on the part of the Tehuantepec Railroad, which is already carrying an enormous traffic, and is regarded with envious eyes by the Panama Railroad Company. With the exception of the Tehuantepec route and the Salvador Railway, the Americans now control the transportation arrangements of Central America, being thus enabled to regulate the freight charges upon all merchandise entering these countries. Already several cases of unfair discrimination have been recorded, such, for instance, as charging a British commercial traveller in Costa Rica a sum of $75 (£15) for the conveyance of his samples between the Port of Limón and the capital of San José, while an American drummer was actually granted a rebate of 50 per cent. off the ordinary rates, his expenses amounting to little more than $20 (£4) all told. In both cases the weight of the samples was the same.
British trade declines--Suggested remedy--Distributing centres--Trading companies and branches--Unattractive cheap goods--Former hold upon Salvadorean markets--Comparative statistics between Great Britain, Germany, and the United States--Woollen and cotton goods--Absence of British bottoms from Salvadorean ports--Markets open to British manufacturers--Agricultural implements.
While everyone who has studied the question of British trade abroad is practically agreed that it is at present suffering from more than the average number of disadvantages, few have any real remedy to suggest that might possibly put a different face upon matters. One idea which has been suggested to me, however, is worthy of careful attention. This is to establish throughout the Central and South American States a number of retail British houses which shall act as agents and distributing centres for our home-made goods. I acknowledge that the notion is not a new one, since the enterprising Germans, who are, as I have shown, our keenest competitors in this part of the world, have long conducted such retail establishments, and have found them most beneficial in the extension of their business with the Latin-American countries. To open up new branches without the aid of some such method, it may be said at once, is almost, if not wholly, impossible. I admit that there are difficulties which will have to be encountered, as there are in all enterprises of this nature; but that these are not insuperable the Germans have themselves very clearly demonstrated.