The Bridgeport evening farmer., 1916-12-05
NEED NOT FEAR
AFTER-THE-WAR
COMPETITION
Federal Trade Commission
Advises American Export
ers To Be of Good Cheer.


comprehensive review of foreign
trade conditions ever prepared by any
governmental agency, the Federal
! Trade Commission to-day expressed
| opinion that the much discussed aft
er-the-war commercial competition
from Europe will not bel likely to
come for some time after the conclu-
sion Of peace.
High costs Of raw materials, in
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.
| Laws to put the American exporter
on a 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 legisla-
| ton and was followed by introduce
| ton of the Webb Bill which still
awaits action and has the endorse
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 a. temporary in
terlude, the permanent influence of
which it is difficult to estimate.
I cit is frequently asserted" says the
report, 1.-The manufacturers and pro-
ducers of the beligerent countries will
take effective measures to regain 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, including 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 of inquiry
than before the war, due to increased
costs of raw material, increased taxes
and possibly higher wages.
Gin their struggle to retain their
former trade such foreign manufac-
turers and producers may be expect
ed to fully utilize their highly eff
cient organizations for the promotion
and handling Of trade beyond their
! borders even foregoing profits or TAX
ing very low profit until their costs
again become normal and they have
re-established their trade. Hence,
competition from foreign Industrial
combinations, aided by foreign ship
lines and foreign banks, and backed
by foreign governments. may be even
sharper than before the war;
The commission does not consider
cooperation as the most important
factor in foreign trade, but it con-
siders it an important and necessary
element in any effective plan.
nSi6
it says "are involved in this prob
lem. These are, first, the presence Of 4
concerted action among the foreign
competitors of American exporters;
second the probable effect Of similar
action by American manufacturers in
foreign trade, including it's 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 manufa cturers."
It is apparent, the report sets forth, |
that the country's- organization for
export trade must be strengthened If
its manufacturers and producers are1
to, compete on more nearly equal
terms in the worlds. commerce. OF
possible dangers to American con-
sumers it says: .1t 1
'IHo commission DGuoVeS JndC the
advantages to- be gained by effective
cooperation in foreign markets need
not entail any sacrifice of the firmly !
established policy and this country in
regard to- the maintenance of fair
competitive conditions and the pro-
hibtion of monopolistic control with
in the United States. 1 At the same |
time cooperation for export trade
will enable the exporting manufac
turer to realize an increased return
for his products along with deceased
costs through larger scale production, |
and the country will enjoy greater in
dustrial stability resulting from a
broader market .l |
The present laws, the report says, !
in many cases as they stand operate |
to prevent formation of cooperative
organizations for export trade.
Changes must be made, 1t says, to re-
lieve. the manufacturer of even doubt
as to their application in foreign
trade organization, but leaving them /
as at present to- protect the domestic
consumer against combinations to
control prices. :
The report takes up competitive |
conditions in most Of the countries of /
the world, devotes a chapter to COM
petition in South America, gives COM /
petitive conditions In particular in
dustries and carried a mess Of tables !
and statistical data concerning, trade
conditions everywhere.