The Story of Brazilian Commerce 263
Germany: 711,∞otons
Great Britain: 664,000 tons
United States: 141,000 tons
Of course American coal is always preferred by American-
owned public utilities, but state-owned railways and other
business organizations purchase German coal in order to free
the blocked credits accumulated in Germany from the ex-
ports of Brazilian products. That was the “compensating”
system we could not avoid.
5. The wheat and flour story is another page of past
Brazilian-American transactions. For years and years, the
largest imports were from the United States and special
rates were granted by Brazil. Slowly but consistently, the
Argentine entered the market, first in the southern states, as
being closer than North America, then in the central states.
Today the Argentine sells more wheat and flour, in tons,
than coal is bought from England and the United States,
940,000 tons in 1937. It was also here a question of lower
prices, and with government measures to stimulate domestic
flour milling and wheat production in the southern states,
there is little possibility that the lost ground will ever be
regained.
6. Electric machinery and equipment form a group of
supplies of great variety. An American lamp factory emi-
grated to Brazil and further curtailed importations, till
Japan came in with still cheaper lamps. Refrigerators,
radios, and household appliances have had a large market
opened by the installment system, very much used in Brazil.
In many cases there is an assembly plant in the country that
lowers the cost. Anyway, the income of the average middle-
class family, though rapidly improving its standard of living,
is still limited.