Omaha daily bee., 1916-12-03
EUROPE NOT READY
FOR COMMERCE WAR
Peace Will Bring Other Prob
lens, But United States
Must Be Prepared.
TRADE COMMISSION VIEWS

Washington, Dec. I'm the most
comprehensive review of foreign trade
conditions ever prepared by any gov
ornamental agency, the Federal Trade
commission today expressed opinion
that the much discussed after the-war
commercial competition from Europe
will not be likely to come for some
d, time after the conclusion of peace.
y High costs of raw materials, in
d creased taxes, probably higher wages,
to say nothing of the capital and
stocks of material necessary to re-
pair the wastages of war, the report
says, are expected to delay the full
power of European competition until
it regains its normal state.
Favors the Webb Bill.
Laws to put the American exporter
on a footing with his foreign rival
by authorization of collective foreign
trade selling agencies are recon-
mended. A brief summary of the re-
port made public last May, while it
still was incomplete, recommended
such legislation and was followed by
introduction of the Webb bill, which
still awaits action and has the en-
dorsement of the administration.
In studying the export situation, the
trade commission, it is declared, has
tried to take the problem in its broad
historical aspect, considering the pres
entwar as temporary interlude, the
permanent influence of which it is
difficult to estimate,
at is frequently asserted" says the
report, "the manufacturers and pro-
ducers of the belligerent countries
will take effective measures to re-
gain their former trade. 1t is likely,
however, that some time will pass
after the close OF the war before they
will be able to exert their normal
competitive power. Much capital, in
GLIDING large stocks of material, 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
than before the war, due to increased
costs of raw material, increased taxes
and possibly higher wages.
Sharp Competition Certain.
"In their struggle to regain their
former trade such foreign manufac-
turers and producers may be expected
to fully utilize their highly efficient
organizations for the promotion and
handling Of trade beyond their Dor
ders, even foregoing profits or taking
very low profit till their costs again
become normal and they have re-es-
tsblished their trade. Hence, compe
tition from foreign industrial combi-
nations. aided by foreign ship lines
and foreign banks, and backed by for
eign governments, may be even sharp
err than before the war"
The commission does not consider
cooperation as the most important
factor in foreign trade, but it consid-
ers it an important and necessary ele-
ment in any effective plan. i
Three important considerations"
it says, 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 &C
ton by American manufacturers in
foreign trade, including its possible
disadvantages to domestic consumers
and smaller competitors; and, third,
the effect of the present laws of this |
country upon such cooperation on |
the part of American manufacturers"
United States Must Prepare.
1t is apparent, the report sets forth,
that the country's organization for ex-
port trade must be strengthened if its |
manufacturers and producers are to
compete on more nearly equal terms |
in the worlds commerce. Of possible |
dangers to American consumers it |
says:
The commission believes that the
advantages 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 maintenance of fair
conditions and the pro-
hibition OF monopolistic control with
in the United States. At the same
time cooperation for export trade
will enable the exporting manufac-
turer to realize an increased return
for his products along with decreased
costs through larger scale produc-
ton, and the country will enjoy
greater industrial stability resulting