Evening capital news. (Boise, Idaho) 1901-1927, 1916-12-02
THIS COUNTRY WILL
HAVE ADVANTAGE
Report Expresses the Belief
That 1t Will Be Long
Time After the Conclusion
of Peace Before Trade
War Comes.

hensive review of foreign trade condi-
tions, the federal trade commission to-
day expressed an opinion that the much
discussed after -the-war commercial
competition from Europe will not come
for some time after peace.
High costs of raw materials. in
creased taxes, probably higher taxes, to
say nothing of the lack of capital and
stocks of material necessary to repair
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 SELL
ing agencies are recommended. A brief
summary of the report made public la st
May, while it still was incomplete, rec
commended such legislation and was fol-
lowed by introduction of the Webb bill
which awaits action but has the in
dorsement of the administration.
INFLUENCE OF THE WAR.
In studying the export situation, the
-trads-- oamssisste4s,--ffs- -ffs--ts-tfeclared has
tried to take the problem in it's broad
historical aspect, considering the pres
ShS wal dS q the
permanent influence Of which 1t is diff
ficult to estimate.
1T is frequently asserted" said the
report, the manufacturers and pro-
ducers of the belligerent 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 industry than before the
war, due to increased costs of raw ma
terial, increased taxes and possibly
higher wages.
WILL BE SHARP COMPETITION.
I'm their struggle to regain their for
mer trade such foreign manufactures
and producers may be expected to uti-
lie fully their highly efficient organi-
cations for the promotion and handling
of trade beyond their borders, even
foregoing profits or taking a very low
profit till their costs again become nor
NAL and they have re-established their
trade. Hence, competition from for
eign 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 did not consider CO.
operation as the most important factor
in foreign trade, but 1t considered it an
anrto Mt
effective plan.
THREE CONSIDERATIONS.
Three important considerations" Il
said, ARE involved in this problem
These are. first, the presence of con-
certed action among the foreign COM
petitors of American exporters; second
the probable effect of similar action by
American manufacturers In foreign
trade, including its possible disadvan-
taSes to domestic consumers and small
er competitors; and, third, the effect of
the present laws of this country upon
such cooperation on the part of Amer
lean manufacturers"
1t Is apparent, the report set forth, !
that the country's organization for ex-
port trade must be strengthened if it's !
and producers are to |
Lompete on more nearly equal terms in |
The worlds commerce. or possible |
dangers to American consumers 1t
says:
NO MoNoPoLIsTfC CONTROL.
THE commission believes that the |
to be gained by effective CO.
operation in foreign markets need not |
entail any sacrifice of the firmly estab-
ished policy of this country in regard |
% the maintenance of fair competitive
conditions and the prohibition of mo-
lopolistic control within the United
States. At the same time corporation
or export trade will enable the export
ng manufacturer to realize an in
'reased return of his products along
With decreased costs through larger
Gale production, and the country will
'njoy greater industrial stability re-
'ulting from n broader market"
The present laws, the report said, in
many cases operate to prevent forma-
ion of cooperative organizations for
Xport trade.