tion, although there is nothing to prevent its also acting as an agent for an exporter in the sale of his merchandise abroad. In fact it often acts both in this capacity and as an agent for a foreign buyer. The commissions vary from 21⁄2 to 5 per cent. The large export commission houses of this country are exceedingly useful adjuncts to foreign trade and their activities should not be discouraged. This does not mean that our manufacturers should always depend entirely upon commission houses for their orders as they do now. Any business man with ordinary business judgment and sagacity can see that the orders coming to him through the commission houses will never build for him an independent or permanent export trade. He will also see that usually it will pay him best not to ignore this source of business supply, but on the contrary to cultivate the acquaintance and the good-will of the representative exporters. The Commission House as Buying Agent The commission house is the buying agent for foreign merchants; this is its proper function. When it starts to buy on its own account and to send salesmen throughout the world, it becomes a sort of international department store and deviates from its true sphere. Not infrequently, the manufacturer finds a buyer abroad who will give him an order only through his commission merchant in the producer's country. In that case it is customary to ask the buyer to send a duplicate order to the factory, so as to make sure that the order will be executed according to directions, and incidentally that the order itself will be transmitted to the manufacturer by the local commission house. There are numerous reasons why a buyer abroad often prefers to deal through the commission house. If he buys much and in a great variety it saves him much correspondence, expedites matters, and makes it possible to have various consignments shipped on the same bill of lading, with possibly a saving of freight and cartage, to say nothing of trouble. The purchaser is likely to be acquainted with the commission house, which perhaps has a branch in his town. He can look to this house for responsibility if anything goes wrong with the order or the shipment. But perhaps the most important reason of all is that the export house will give him the credit which, in most cases, the American manufacturer will refuse. There are also certain advantages for the manufacturer in dealing through the export commission house. The transaction is like any other domestic transaction, for the export house is practically the purchaser. The business entails no extraordinary expense, and the manufacturer is always sure of his money as soon as he executes the order. The Export Merchant There are very few real export merchants in this country, although they are fairly numerous and important abroad, some of them merely loaning money to importers in foreign markets. Many commission houses stock goods and sell from these stocks and in this sense may be called export merchants. The more important export merchants sometimes maintain very extensive organizations, having numerous offices abroad, employing traveling salesmen, issuing magazines, and even owning and operating steamship lines. They are always to be considered as acting, not for the producer or the purchaser, but for themselves. The Export Agent An export agent does not act for the buyer as does the export commission house, but for the seller, usually charging the latter a commission on all his foreign sales. Generally an export agent specializes in some one line of products, such as paper, hardware, copper, etc. Most frequently he also confines his operations to a certain locality-some operating exclusively in South American markets, others in the Far East, and so on. In New York City there are a number of successful foreign selling agencies which operate on a large scale, maintaining many foreign offices and having extensive connections among foreign buyers. Co-operative Export Organizations There are a few co-operative export organizations which are maintained as the export departments of non-competing manufacturers, but this method of promoting export business has not yet come into its own among the American producers. Nevertheless, in many cases it is not only the best but the only practical method for the extension of export trade. In England, France, and Germany, co-operative selling organizations have been very popular and are doing a prosperous and successful business. THE EXPORTER'S STAFF The Export Manager The export manager is an all-important personage in export trade, and no concern engaged largely in such trade can safely dispense with him. "Export manager" does not fully describe his calling, which is oftentimes more complicated than the title would indicate. His duties depend upon the size of the concern employing him, and, to some extent, upon the trade strategy of his employer. If the concern is small, the export manager may combine within himself the functions of foreign correspondent, shipping clerk, traffic manager, advertising expert, sales manager, export agent, and eastern manager. Ordinarily he is expected to cultivate the acquaintance of export commission men and brokers, attend to shipments of merchandise at the port of exit, and occasionally write an advertisement for insertion in some local export publication. This is his usual work, not because his profession does not call for a larger field and more important duties, but because his employer is too often of the class who either cannot or dare not enter export activities on a larger scale, depending, for the time being at least, upon the local commission houses and resident buyers of foreign houses for his export orders. There are several classes of these export managers but the type just described is fairly representative. The theory on which many of these boys (for they are usually very young men) are put in their positions is that they are honest, persevering, and "good mixers." It is believed that even though they have not an extensive acquaintance among export commission houses they can soon develop such an acquaintance, that because of their perseverance and honesty they can learn the business and that they will stick to their jobs. There is no good reason known why men of greater education and ability should not be anxious to enter this field, which offers really large opportunities. It is certain that many large concerns would be ready to employ them on favorable terms. The Director of Foreign Sales There is another class of men sometimes called export managers. These are the men of large caliber who are usually given reponsible offices, such as vice-president or secretary. Their function also is to cultivate the acquaintance of export commission houses and resident buyers, but that is only a small part of their activities, for they usually have complete charge of selling campaigns in different sections of the world. They supervise agencies, correspond with customers, and negotiate sales directly from the factory. In addition to all this they usually manage a large force of local employees, salesmen, managers, and agents. The Foreign Trade Manager The foreign trade manager is usually a man of considerable education and large experience in foreign trade, familiar with a number of foreign languages, and who has traveled and sold goods abroad. He has secured his position, as a rule, by first winning his spurs in the field. These men are high-priced and only concerns conducting operations in foreign markets on a very large scale can afford to employ them. Oftentimes they have left lucrative positions abroad or in the government service to fill this office. The term "foreign trade manager" is better known among importers who often have such a man as manager of a foreign department. There is reason to believe that the time is approaching when the larger exporters will replace the export managers of the type first described by foreign trade managers who will have charge of imports as well as exports. The Manufacturer's Export Representative The manufacturer's export representative is the name given to the agent of the manufacturer who attends to his foreign shipments and solicits orders for him from the local commission houses. Such agents frequently represent more than one house. The arrangement is not generally satisfactory and the concerns employing such persons are usually beginners in foreign trade. The Correspondent The correspondent is also an indispensable adjunct of the world's trade. Knowledge of languages alone does not make a competent correspondent, even though such knowledge includes all the refinements of correspondence used in the country with which he is employed to deal. The right kind of correspondent must possess some of the qualities of a high |