The Manchester journal. [volume] (Manchester, Vt.) 1861-current, 1915-08-12
POTASH MAIDEN.
AMERICA" POSSIBLE
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! Washington. August ii--Potash Is
used in making soft soap; il strikes
your matches; helps cure meat; blasts
rock; and what is Of most interest TO
nc American farmsr, It is The basis
/ for fertilizers.
The prospect Of potash manufacture
in this country. particularly in Cali
fornia, and the protective tariff duties
which must 81 necessity be given this
industry in the future, II il Is not to
die a-borning. give rise to the question
whether this will cause an increase in
the price Of this article, or in the price
Of fertilizers used by the farmer.
Certainly not, and for the best Of
reasons--protection will render the in
dustry successful, and destroy the
German monopolization Of the Ameri-
can market on potash.
The German control Of the world
market in potash is classic example
Of the manner in which foreign car
tells "syndicates,' or "get-together"
organizations operate. Potash is
found in Germany in practically in
exhaustible quantities, At one time
it was overproduced and profits were
cut Off. The Prussion Government
owned several mines, other German
states were interested and some min
ing was carried on by private enter
prise. Finally they all got together
and organized five-year selling syn
dicate, which has been several times
renewed, and which has formed an ex-
port branch, domestic distribution
bureau, and carries on an educational
advertising propaganda spending ST.
100000 annually to boost foreign
sales. II is headed by Government
al official. At the time Of its organ
ization the syndicate put prices on a
profitable basis, where they have since
remained.
Occasionally an independent produc-
er would sell outside the syndicate and
then go in. American manufacturers
who ayailed themselves of such sales
were punished by being charged five
per cent more for bagged potash than
other American buyers. They had to
have the potash, the SUBJ was con-
trolled by the syndicate, and there was
no alternative.
June, 1909, a new syndicate was to
be formed. There was little SQUAD
BILE before they got together and for
two hours American buyers took adj
of the confusion and booked
contracts for from two to seven years
at 80 per cent reduction in price
At the end Of the two hours the Prime |
Minister of Commerce had stopped /
further sales. The Reichstag then
passed law declaring potash to be a
and each producer entitled
10 a fixed percentage of the total; If
le sold more, the over-sale was heavily
axed. This tax caused the cancalla-
ion of the American contracts. Since
hat date American buyers have been
Utterly at the mercy of the German
indicate in purchasing potash.
If, at the termination of the Europ-
IAN war, Germany finds that this
is manufacturing its own pot
lsh. every tactic known to the com
nercial genius of that nation will be
ERECTED toward killing off our indus
ny. Under free trade, there would
,e a period Of price-cutting which
night temporarily benefit the farmer
n the price he paid for his fertilizer
,ut, with the destruction Of our do
nestle industry, Germany would again
dept the old price, or doubtless in
rease it in order to make up for the
osses of the price-cutting campaign.
md an industry which gave promise
( freeing us from German monopoly.
educing the price Of fertilizer, and
Employing Americal labor at wages
yhich would insure large purchasing
over of the farmers products, would,
s have many others, be stifed by the
pet theory Of free trade.
Domestic potash is possibility I'M
er the Republican policy of protec-
ion to home industries, and not other
..rn