New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-11-20
ENGLISH DUMPING.
One of the Open Secrets of Trade
Market Prices and Export Prices.
Birmingham. November 8.

- rarftish conservatism English manufacturers
are not SO flexible IN their methods as 'he Nei
Ems vet they know what is going on IN 'he
.ror,d and are gradually adapting themselves
a.. ,,,r economic conditions. They are nee1ihs
80 American end German rivals on theH own
0,,,6 and with their own weapons pul WIN
e., n,,-,sb of trugnpets. and so quickly that
- ,,,,st nut his ear on the earth TO De con-
80 that q conflict is in progress. Dumping
,,,..re+ton IL 2 stranger from the planet
- 80 IN slight from flying machine IN
- ha would hear great deal about
$50, Not English dumping. but American
-, 6urnping The tarin reformers
S4l1 t-,,s him the first report OF the Chamber
l,--,s,,on m the iron and steel trade ana
.,.sr6 DANGEROUSLY that the Oeiiii"''' ~
- vgsrs running the Industry mere py
.,a,- surplus product In the Ehghsh
o'H.ps ~, cheapening their processes OF
-,,,,,ec+r,rs by increasing prooucuoh Gnu NeeP
- 80 factories running. The free AiaUei'
-. ,sxt take him in hand ana oeihohSDa.
"ou'o o--,oe. was the greatest thing on eartn
IN. source and evidence OF prosperity 0'N -
S.,,+Iy mat English consumers were enrlchea
fesu-.-r, e,5 foreign nations Impoverished
- v,s,-or from Mars would have to
49,, circuit Of Industrial England ana
' .rs the confidence Of the merchants ana
S.-so..,,rers before he could learn the uulh
-, v7relish dumping The Enghsh 90 'leii'-
-, that they Teproach Foreigners 4O'
- They have one set OF prices toF tii0 i4oi40
'. ar6 another and much lower one LOT
a.. ,oreigu market, and the EHsI-7N
-.,,.s 6rrop their surplus produc's III eoiiii0''e
-..,r.rses especally America ana GelI4Ia's' a.
-. t-a,,,erflv below the cost OF HlaIiuI3O -
-, ,,s-, not be working scientlhcalIy' lIA0 '1'
1,.r-,ons. hut they are trying 10 uhueIseIi 00i
GXSf
-..,+ors IN foreign markets ana are -
pe-I5.a,ar,rg their trade abroad by special
discounts and prices below NOSE u 1l'e -,
go There are already dumping prices
H4N- , ,-.~1.ets and these are gradually be-
40' - Continuation prices for the export trace
- .toss arranged 10y German selling agents
4-I- ,-. .ts English tariff reformer, Whelhei
.I,o+,o,,st or imperial preferential UaueI'
- -.,,.r weary Of saying is that ma1dIac'u'
., protection countries control their nome
Lets and export surplus stock TO lo'eisH
.o,,.r,es 70 be disposed Of at 10" prices "'i'0N
sstv eoYnpetition. This is "ha' - N-4o"
z,.,,,s and Nj Chamberlain's COMMISSION
- .rov,r that Il IS a highly scientlhc process
-. :. enables German and American lilailu-
esc+urers TO keep their works rul-''N's
,,orely and thereby 70 lower the cost o1 pa
-. -, a. home and abroad. The commission
cavity admitted that dumping was Alie"U'
,,,sesnresd and proIta bic 10 the countries PIC"
.ts,r1 y but contended that there were no az
,vsn7aees 10 consumers Of dumped produces
-, ,o,,16 coropensate England for displace-
,osnt Of domestic goods IN the nome ma A0'
-. rAsu1t,ng loss Of employment and wages.
Neither tariff reformers nor Free 1raceiS -
r-nglsnd have grasped the idea that with the
80 .rs+ar, as Il is. and without the scientihc
combinations known IN Germany for dlrectlhs
sor.,yn trade the dumping Of British manu-
,.c,,,ss abroad goes on and never stops the
consumers here take It for granted that British
soods are sold more cheaply IN England than IN
4orsien countries; but merchants and manufact-
,,rers know that in many lines Of merchandise
the selling prices TO foreigners are far belo" the
market prices. This is one Of the open secrets
OF trade now discussed IN England. There IS
the old fashioned Cobdenite theory that Ameri-
can, German and French consumers OF Enghsh
imports pay more for them and tax themselves
by their tariffs; but practical men IN the Mid
lands and the North understand what is the
universal practice. The manufacturers here as
well ss in Germany want 10 keep their factories
IN full operation for the sake OF reducing the
cost Of production, and they make special prices
for foreign trade so as TO cover the tariff duties
and the jobbing profits British merchants are
constantly doing the same thing in their trade
sell their goods IN countries with protective
tariffs unless they did this; and the BUYERS from
Germany and America insist upon having st
done
When Mr.. Chamberlain asserts that tariff Of
10 per cent could be imposed upon manufactured
imports and the foreigners would virtually pay
the duties, he IS laughed at by English Free
Traders but merchants and manufacturers
here could easily supply the proof from their
own dealings with German and American buy
ers This could be done even when there is an
administrative customs act. as in America, pro-
viding that invoices shall include market valua-
tons, for the most yigilant consuls and the
most astute appraisers cannot prevent the sub
sututlon Of special prices with trsIIe discounts
for market prices. IN Free Trade England. as
in Protection countries. there are market prices
fer domestic trade ana lower prices for export
trade. There are exceptions but the rule ap-
plies 70 ali branches Of merchandise in which
there IS competition between countries. Prices
are Systematically lowered here for the export
trade. and not infrequentIy English goods are
solc in Germany and America below cost.
Dumping goes on in the ordinary course Of
CRYING English manufactures at reduced prices
into foreign markets; and II is Increasing with
me exigencies OF trade and with the necessity
1of charging production IN order to reduce the
average cost Of manufacture. The practice has
beeh introduced by merchants and manufactur-
eTs individually, and # has become general It
Is crude operation IN comparison with the
higa-y intelligent management of the German
export trade. but there are many indications
mat English dumping Will speedily become more
SCIENTIFIC and be conducted by industrial COM
binstions
III Aalstead, the wideawake. efficient Amer
-0~h consul here, whose training as journalist
enables him 10 know what is going on In indus
Elel England, has called my attention to the
conTnente OF the local and traHe mega I,nnr the