The Cecil Whig., 1916-01-08
POTASH "MADE-IN-
AMERICA" POSSIBLE

Potash is used in making soft soap;
it strikes your matches; helps cure
meat; blasts rock; and. what is Of
most interest to the American farmer,
it is the basis for fertilizers.
The prospect of potash manufac-
ture in this country, particularly in
California, and the protective tariff
duties which must of necessity be
given this industry in the future. if it
Is not to die a-borning, give rise to the
question whether this will cause an
increase in the price of this article,
OF in the price of fertilizers used by
the farmer. Certainly not, and for
the best of reasons-protection will
render the industry successful. and
destroy the German nlonopoiiZatlon of
the American market on potash.
The German control of the world
market in potash is a classic example
of the manner in which foreign "car-
tells" "syndicates," or "get-together"
organizations operate. Potash IS
found in Germany in practically mex
hsustible quantities. At one time it
was overproduced, and profits We're
cut off. The Prussian 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 tiVe-year selling syn
dicate. which has been several times
renewed, and which has formed an eX-
port branch. a domestic distribution
bureau. and carries on an educational
advertising propaganda spending ST.
100000 annually to boost foreign
sales. 1t is headed by a Government
official. At the time OF its organiza"
tion the syndicate put prices on
profitable basis, where they have since
remained.
Occasionally an independent pro-
ducer would sell outside the syndi-
cate and then go in. American manu-.
facturers who availed themselves of
such sales We're punished by being
charged five per cert more for bagged
potash than other American buyers.
They had to have the potash, the sup
ply was controlled by the evndicate,
ard there was no alternative.
In June 1909, a new syndicate was
to be formed. There was little
squabble before they got together, and
for two hours American buyers took
advantage of the confusion and book
ed 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 monopoly and each producer en-
titled to a fixed percentage of the
total if he sold more, the over-sa!e
was heavily taxed. This tax caused
| the cancellation of the American con-
tracts. Since that date American
buyers have been utterly at the mercy
of the German syndicate in purchas-
| ing potash.
If. at the termination of the Euro.
pean war, Germany finds that this
country is manufacturing its own pot
ash, every tactic known to the com
mercial genius of that nation will be
directed toward killing off our indus
try Under free trade there would
be a period of price-cutting which
might temporarily benefit the farmer
in the price he paid for his fertilizer,
but with the destruction of our do
mestic industry. Germany would
again adopt the old price, or doubtless
increase it in order to make up for
the losses of the price-cutting cam
paign. And an industry which gave
promise of freeing us from German
monopoly. reducing the price of fer
tiliZer. and employing American la
hor at wages which would insure a
large purchasing power of the far
mer's products, would, as have many