Markets, markets—who has them

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Part of The American Chamber of Commerce Journal

Title: Markets, markets—who has them
Language: English
Source: The American Chamber of Commerce Journal Volume XVIII (Issue No.3) March 1938
Year: 1938
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Fulltext: March. 1938 THE AMERICAN CHAMBER OE COMMERCE JOURNAL 33 Markets, Markets—Who Has them? • There is wide field of novelty markets in Amer ica, but selling much elsewhere must be based in a mercantile marine service. Because Commonwealth sales in the American market run five times as high as Commonwealth exports to all other points in the world, a recent comparison being $122,000,000 and $22,000,000, economists study the situa tion and believe it ought to be corrected. Recently we had occasion ourselves to submit data on the subject, and to try to suggest means of broadening the Common wealth’s outlet for its enormous surplus commodities and a trickle of domestic manufactures. Our conclusion was that exports of manufactures might be increased, to the United States! From the viewpoint of broadening mar kets, this was discouraging. But Americans are like the ancient Greeks, the Athen ians at least, in St. Paul’s time, always ready to try some thing new. Since new things will be precisely the things the Commonwealth will have to sell, naturally they should find the keenest demand in America. For example, what can you make from abaca, our old friend Manila hemp, aside from cordage? From the finer grades, novelties, of course. You can make cloth, some of it readily convertible into women’s hats or hat founda tions ; some of it much more pliable, even quite soft, for novel costume uses and for cottage and trailer utility. You can make doilies and runners and dish-jackets of it. All these things, and as many more as designers may think of, you can dye radiantly, and the colors will be fast. Also, all such novelties can be popularly priced, for chain and department stores to want them; and when things click just right, one of these days, you can have an abaca-novelty market overseas ... in the United States. Reasons for this are not far to seek. First, America is an insatiable market for low-priced novelties such as tough tropical fibers and manual skill produce. Second, there is no peasantry in the United States: there is a very limited supply of domestic knick-knacks, yet Amer icans are avid buyers of these triviata of commerce. Third, other countries have their own, because they have peasants, and besides having their own, have very little to spend for such gratifications. Would you sell them in Japan, or China or India? Would you sell them in Italy, or Dalmatia or Albania? Would you venture with them much even in London? Certainly not in Germany, where they call lard butter—a long step down from Amer ica’s popular margarines—for you would come a tragic cropper if you did. You could not sell them in Mexico or the central Amer ican states, or in the West Indies or the southern Amer icas; they all have peasants galore and peasants all make such things. So you would be stepping on no toes in making them for the American market, and if you ever do make them so as to bill them out in thousancjs-gross lots, that will be your market. The experience of the reed furniture industry is in point, the Commonwealth having the premier reeds, that is to say, rattans, the hardwoods to go with them, and peerless craftsmen for an incomparably fine product. Who wants it? Americans, some in Hawaii and others mainly at the mainland beach resorts and climate cities. Thou can buy it, and it’s beyond the reach of a very large public elsewhere. Since it is in a class by itself, it is all right to supply America all she wants of it. She has no peasants to make it, out of anything, at home. If you turn to larger items, you can’t do much in Europe with them, nor in the Far East. Take cigars. Europe wants your tobacco, when it is very cheap and very good, not your cigars; she makes cigars government monopolies behind massive duty barriers. Can you sell her rope then ? Just now you might sell Europe some rope, because she is hurrying her navy building and outfitting, but ordinarily the best you can do is to sell her the Manila fiber itself, to blend with lesser fibers from her own co lonies, for her own cordage factories and ropewalks to make into the completed product, rope and twines. And you can do no better in Japan, where you are more than lucky if the tables are not turned—if the Japanese manufacturer does not buy your raw fiber and ship it back to Manila, finished rope, to pay the duty and com pete with you in your own market. It is the same way with lumber; ordinarily Japan buys your logs, works them up in her mills, and sends the lumber to your own lumber markets: wherever you are selling outside the Common wealth itself, and of course America, Japan is likely to be selling even cheaper. You may have a limited market for lumber outside America, mainly in China and South Africa at coast cities where it is cheaper to import by water than to cart overland from domestic forests. But more and more Japan will hang on your flank, at last outstrip you by utilizing commercially even the sawdust from the mills and by squeezing labor. Lumber is a fair chance, nothingmore. It is the same with the edible products of coconut oil, of which the Commonwealth has large resourceful manu factories at Manila. The principal market is the Com monwealth itself, the fifteenth largest country in the world on the basis of population—on a basis of per capita wealth somewhat above that. Some other business dev elops, and can be held by the skin of the teeth, but little can be added. For when Commonwealth products of this sort, well made and attractively packed, go into other eastern markets they compete there with the domestic products of the various countries and they buck protective duties. It is a hard game at best. The reason it is a particularly hard game is that Com monwealth exporters are entirely at the mercy of the freight-rate conferences. We know of nothing equal to adverse freight rates in deflating commercial enterprise— not even taxes. (However, taxes standing in the way of exports should be quashed). You never know, here, when the freight rates will change or what the change will be; as we said last month, no government on earth has any say about it, but the powers that change them are more interested in countries competing with the Com(Please turn to 4~) 42 THE AMERICAN CHAMBER OF COMMERCE JOURNAL March, 1938 REVIEW OF THE NEW YORK SUGAR MARKET By Donald A. Cook Member, iVi.it' York Coffee & Sugar Exchange Managing. Cartner, S. If. I.ei>j <£- Company, .Manila No. 3 CONTRACT Following a fairly steady market in New York at the end of January when business in both Philippine and Cuban raws was reported done at 3.18, the market turned easier with the turn of the calendar on Cuban selling, with the trade only fair buyers. On February 1, 6,000 tons of Phil ippines were sold to Gulf refiners at 3.18 for early March arrival. The market for futures steadied a trifle the next few days in active trading. How ever, in the raw market the pressure of Philippines afloat and sales from Cuba resulted in considerable trading with buyers cautious. On February 2 the fol lowing transactions were reported: 2,000 tons of Cubas sold at 3.18 and 3,000 tons at 3.17; 3,000 tons of Philippines due early February were done at 3.16, while a trifle later 26,000 bags of Cubas were sold to Gulf refiners for prompt delivery at 3.15. There was further interest at 3-.15 with most sellers holding for 3.18. The futures market remained steady until February 7 when easiness was caused by reports that Puerto Rican strike leaders were favoring the Governor’s peace pro posals. There was active trading on the Exchange at 2.26 for May and 2,292.28 for SANSHIN PLYWOOD SUPPLY Lawan Sen. Oregon Pine Douglas Fir Plywood Telephone 2-91-08 P. O. Box 1262 741 Echague Manila, P. I. Manufacturers E. L. HALL, MANAGER E. E. ELSER AGENCY KNEEDLER BLDG.-MANILA INSURANCE IN FORCE Increased in 1937 by 24 Million Dollars To over $556,000,000 INSURANCE COMPANY KfAfl OFFICE-TORONTO. CANADA Eftoblished I88J TEL. 2-15 O3-O4 September. The trade turned rather bear ish in anticipation of an early settlement of the stevedores’ strike, which was ex pected to release fair amounts of Puerto Kican raws. On February 8, futures again dropped a point for all positions on heavy trading. Spot eased two points to 3.15 and 6,000 tons of Philippines due February 15 were sold to refiners at 3.15. On February 9, and February 10, the market continued to show an easy under tone for futures with continued heavy trad ing. May futures were done as low as 2.22, while September dipped to 2.25. There was consideralbe demand for contracts at these levels but the actual market con tinued under pressure due to unsold afloats. Cuban raws were sold at 3.15 again and 4,000 tons of Philippines due March-April were sold on February 10 at the same price. A smaller parcel for early arrival was re ported done at 3.13. At the close of the first ten days of the month, refiners’ ideas were 3.13 with of ferings at 3.16. With the settlement of the Puerto Rican strike it was believed that generous short covering would be seen in the futures market, while the market for actuals remained dependent on the amount of unsold actuals still to arrive. The next few days the market was quiet and a bit steadier with futures advancing one to two points and raws changing hands at 3.12 and 3.13. On February 16 considerable activity developed on short covering and buying of actuals by operators. September futures advanced to 2.32 and considerable actuals were done at 3.17 and 3.18. Further buying set in the following day at the open ng, causing transaction in September tutures at 2.34 and Philippine raws at 3.30 tor March-April arrival.. However, on this date President Roosevelt at a press conference released a statement that inflation or further dollar devaluation was not contempleted by the Administra tion. This caused a recession in all security and commodity markets and was reflected on the sugar exchange by considerable selling. Early quotations on February 18 proved to be the highest for the month. Cuban operators were aggressive sellers on Feb ruary 19, and on the 20th and 21st both Philippine and Porto Rican raws were done at 3.15. The next few days up until February 25 the market eased off gradually in quiet trading, with September futures done at 2.24 and with raw sugar easing to 3.13 for nearby deliveries and later arrivals at 3.15. Refined demand continued fair but consum ing interests showed no inclination to build up inventories. The last two days of the month showed a steadier trend on the exchange for fu tures, with September moving up to 2.27. The market for actuals was quiet with most business at 3.13. Raw Sugar Futures, No. 3 Contract, Sept. delivery. Last sale, January 31 ............... 2.29 High Sale during February .... 2.34 Low Sale during February ........ 2.24 Closing bid, February 28 .......... 2.27 Net change ......................................... 02 The Second... (Continued from page 13) game, wn.cn wao one-siuediy in favor of Roosevelt up to the last inning, suddenlyturned into a rout, and ended in a tie in the darkness of the Recession. Who will win the second game? Roose velt’s attitude will no longer be that of an amiable contestant but of a ferociously de termined battler who still thinks he has the stuff to win. Markets, Markets... (Continued from page 33) monwealth than they are here. In our memorandum, therefore, our con clusions were: first, developing a knickknacks market in the United States is not objectionable, and should be practicable; and second, pull for an adequate or par tially adequate American and Common wealth merchant marine on the Pacific— get the ships, then think of getting markets with their consistent help. Further' about novelties. Their sale lags because they are not made in great quan tities of standard types. A friend submitted abaca slippers to a business correspondent in New York, an order came back for 10,000 pairs and could not of course be filled. Naturally the order was large, the beaches of America need a million pairs of such slippers. Another experience of our friend was in competitive bids, Japanese underbid him with abaca slippers, of course of our own abaca, with rubber soles: a bci(I’lease turn to page 48) IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL 48 THE AMERICAN CHAMBER OF COMMERCE JOURNAL March. 19 38 Markets, Markets ... (Continued from page 1,2) ter product, paying duty, yet at a lower price. This shows the unorganized state of the abaca novelty industry here. Time was when hand embroidery was equally un organized, yet this was overcome long ago. When the right man comes along, the abacA novelty industry will be thoroughly organ ized and the trade will soar to a value of millions of pesos a year. Trick of it is piecework, to get one vil lage to make uppers, others to make soles, others to dye fiber, others to prepare fiber; and to have a general grading and assem bling plant either at Naga, Legaspi, or Manila as conditions advise. The same capital, successful with abaca, would prob ably branch to coir and shell. This is not recommended to the government, but to private enterprise. That is about all there is to the picture, as we see it. No great flights, but some potentially worthwhile low-soaring; and first ships, then ambitious industry, until which time mainly the factories of other oriental capital may be expected to rise here, with ships at their call, and the Com monwealth may be expected to rernai i dominantly agricultural. BUSINESS AND PROFESSIONAL DIRECTORY SUBSCRIBE For Your FAVORITE MAGAZINES Thru The UNION CIRCULATION CORPORATION 217 Dasmarinas Tel. 4-87-50 CO-OPERATION—SERVICE ECONOMY ff « j» CHINA BANKING CORPORATION MANILA, P. 1. Domestic and Foreign Banking of Every Description P.O. Box 1394 Telephone 2-20-70 J. A. STIVER Attorney-At-Law—Notary Public Certified Public Accountant Administration of Estates Receiverships Investments Collections Income Tax 121 Real, Intramuros Manila, P. I. Philippines Cold Stores Wholesale and Retail Dealers in American and Australian Refrigerated Produce STORES AND OFFICES Calle Echague Manila. P. I. AMERICAN CHAMBER OF COMMERCE JOURNAL P. O. Box 1638 —Manila— 180 David RATES Philippines - P4.00 per year United States - - $2.00 " Foreign Countries - $3.00 - IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL
pages: 33, 42, 48