The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-01-06
EXPLOITATION OF OUR SURPLUS.
Reply by an Importer to an Argument
That II Is No Help for Oyerpr oductlon.


To THE RDIroR or The Sun Sir As
protesting TO have learned something about
imports and exports during more than
twenty-five years trading with and from the
American market. | must dissent from the
position taken by MIR William G.. Lightbown
in ruR SUN of Saturday last:
II stands to that foreign markets can
never cure ovcrproduct,on. The goods we export
not given away they are exchanged for others
and we merely exchange products II Is plain that
the problem OF ovcrproductlon Is unsOlvcd. Amer
lean made goods sent abroad bnng US foreign
made goods Ia return.
on this principle our whole Interstate com
merce ia on false basis. What Is the dis
tributon over tina country of the natural
products OF the West and the South but
means Of selling u local production which
Is In excess OF local consunptonf If TINS
system works locally in this country. why
should II not likewise be applicable 20 eN-
ports as safety valve for our national IN
dustriest
According to Mr.. Lightbown's theory. we
ought not to export any manufactures, III
so. the tAOO, OOO. 900 worth We are now shipping
every year would other not have been pro-
duced at all or any part produced In order
to arrive at a sufficiently low cost would have
weighed on our home markets ana would
have deprecated values in the same way
as II New England were restricted to ITS local
trade Tor the sale or its prod ucts.
II our export trade ceased where would
Mr.. LlghtOown's proposed IS per cent. 40
vance in wages come fromF lie suRSosts
an extra dollar week increase on present
average OF s3i0 year II less goods are
made. how j. even the present standard 10 De
maintained?
that IA legitimate exchange OF things OF
which we have too much for things We lack
constitute, healthy state Of trade.
What is the development OF foreign markets
but one side OF this Legitimate exchange z
Although at present there Is not very scrl-
Gus d Ierence between the amount OF manu-
features imports and exported, the tend ENJOY
r. for exports 10 increase and Tor Imports 10
diminish
exported, and there Is no connection between
the two.
Mr.. LiGhtbown does not explain why such
oyerproduction as exists Is 10 be absorhed
In this country. nor does lac grasp the point
that. after a profit has been realized upon
home trade business upon which a factory
works to. say, two-thirds Of It's capacity.
the cost price Of its supplementary produc-
ton Is practically less than that or its resu-
chase Of raw materials in larger quantities.
and the additional product does not eppre-
ciably, increase general expenses. costing as a
rule. less for distribution. Export tr1dc Is
largely done by correspondence ana by
AGENTS on small commission. ENpenflVe
drummers are not required. nor costly bTa inches
for distrlbuton As a rule 1t costs foreign
manufacturers less to distribute their prod
ucts than IL does our maken. one large
vertircs in this country largely, told me TINT
he could afford TO sell. II necessary to foreikn
countries at a reduction Of from 20 70 - per
cent. on the prices he gets ~ this country.
Again. tho dra yhnck Of duty on imported
materials worked m here and rec ported
helps our manufacturers 70 compete IN for
cign countries. One Philadelphia house is
nov executing an order for iron pipes % 20
abroad out Of imported iron. which. aftcr
the return OF he duty on the same. costs.
after paying frei gh:. lessi than the domestic
price Of 3 similar nu1hty. II may be that
some foreign countries even with q laTTe
export tr-lde are less prosperous than We ere.
This j. no proof TINT e. p.rt trade IS IN eYl.
but rather succcs. tie uuestion. Where
would they be ". hout their export tr1dei"
Exporters do not trouble locomotives about
the bslonce Of trade and Il generally happens
that when the sane house Is conducting both
branches iis IMPORTS are Of raw niatcriel7 and
not Or manufactured products. Moreover.
our manufactured imports aye largely nf
articles Of luxury and fashion which origi-
nate abroad. our exports ~ staple manu-
featured goods have practically hut little CON
nection With our imports and do not bring
us fcreign goods IN return" rs Mr.. Light
bown suTnoses.
Any attempt 10 restrict our growing for
81 on commerce is retro -ressive md I'm
American. Your Washington correspondent
IL RI ght in his arguments. IMPORTER.
NEW iDnK. Jan. r.