Washington standard. [volume] (Olympia, Wash. Territory) 1860-1921, 1916-12-15
TRADE WAR NOT TO
COME AFTER PEACE
FEDERAL BOARD DISPUTES RE-
PORTS--LACk OF CAPITAL
ONE HINDRANCE.

In comprehensive review of for
eign trade conditions, the federal
trade commission recently expressed
the opinion that the much discussed
after-the-war commercial competi-
ton from Europe will not come for
some time after peace.
High costs of raw materials, in
creased taxes. probably higher wages,
to say nothing of the lack of capital
and stocks of material necessary to
repair the wastages of war, the re-
port says, are expected to delay the
full power of European competition
until 1t regains it's normal state.
Laws to put the American exporter
on footing with his foreign rival by
authorization of collective foreign
selling agencies are recommended. A
brief summary of the report made
public last May, while it still was in
complete, recommended such legis-
lation and was followed by the intro
duction of the Webb bill, which
awaits action, but has the indorse-
ment of the administration.
In studying the export situation,
the trade commission, it is declared,
has tried to take the problem in it's
broad, historical aspect, considering
the present war as temporary in
terlude, the permanent influence of
which it is difficult to estimate.
Basis of Opinion.
1T is frequently asserted" said
the report, 1.-The manufacturers and
producers of the belligerent coun-
tries will take effective measures to
regain their former trade. 1t is like
ly, however, that some time will pass
after the close of the war before
NAL competitive power. Much CAPT.
tai, including large stocks of mate
rial, will be needed to restore the
wastage of war. For some time also
after peace is declared their costs of
manufacture are likely to be higher
in many lines of industry than be-
fore the war, due to increased costs
of raw material, increased taxes and
possibly higher wages.
I'm their struggle to regain their
former trade such foreign manufac-
turers and producers may be expect
ed to utilize fully their highly eff
cient organizations for promotion
and handling of trade beyond their
borders, even foregoing profits or
taking very low profit till their
costs again become normal and they
have re-established their trade.
Hence, competition from foreign in
dustrial combinations, aided by for
eign ship lines and foreign banks
and backed by foreign governments,
may be even sharper than before the
war"
The commission did not consider
cooperation as the most important
factor in foreign trade. but it con-
sidered it an important and neces-
sary element in any effective plan.
Three important considerations"
1t said, ARE involved in this problem.
These are, first the presence of con-
certed action among the foreign COM
petitors of American exporters; sec
ond, the probable effect of similar
action by American manufacturers
in foreign trade, including its pos
sible disadvantages to domestic con-
sumers and smaller competitors;
and, third, the effect of the present
laws of this country upon such CO.
operation on the part of American
manufacturers"
Organization Is Needed.
1t is apparent, the report set forth,
that the country's organization for
export trade must be strengthened
if it's manufacturers and producers
are to compete on more nearly equal
terms in the worlds commerce. OF
possible dangers to American con-
sumers it says:
THE commission believes the ad-
vantages to be gained by effective
cooperation in foreign markets need
not entail any sacrifice of the firmly
established policy of this country in
regard to the maintaining of fair
competitive system and the prohibit
ton of monopolistic control within
the United States. At the same time
cooperation for export trade.
will enable the exporting manufac-
turer to realize an increased return
of his products along with decreased
costs through larger scale produc-
ton. and the country will enjoy
greater industrial stability resulting