Evening star. [volume] (Washington, D.C.) 1854-1972, 1916-12-02
PEACE T0BEL LONG
... BEFORE TRADE WAR
Will Not Come Immediately
After Hosti|ities Cease, Trade
Commission Says.
SHOWS EXPORT SITUATION

In the most comprehensive review
of foreign trade conditions ever pre-
paredcby any governmental agency the
federal trade commission today ex-
pressed opinion that the much-dls-
cussed after-the-war commercial COM
petition from Europe will not be likely
to come for some time after the con-
clusion 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 repair the
.wastages of war, the report says are
expected to delay the full power OF
EuropeeH competition until it regalns
its normal state.
Laws to put the American exporter
on a -footing with his foreign rival py
authorization of collective foreign SELL
ing agencies are recommended a
brief--summary of the report liaue
public last May, while it still was IN
complete, recommended such iesisia
tion-and was followed by Introduction
of the Webb bill. which still awaits
action and has the Endorsement OF lhe
administration. ~,
In studying the export situation the
tr.de commission it is declared has
tried to take the problem In Its oroad'
historical aspect, considering .he pres
ent war as temporary lnteriuue' tHe
permanent influence OF Whlch IL 10 uii
f1cult to estimate
Must Make Up Wars Waste.
cit is frequently asserted" says the re-
port .the manufacturers and producers
of the. belligerent countries will take eff
fective 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. VIII
be needed to restore the wastage OF war
For some time. also. after peace Is de-
clared their costs of manufacture are hke-
ly to be higher in many lines OF industry
than before the war. due to increased
costs of raw material. increased taxes
and possibly higher wages.
ssIn their struggle to regain their Tor
mer trade such foreign manufacturers
and producers may be expected TO 1uliy
utilize their highly efficient organizations
for thu. promotion and handling OF trade
beyond their borders. even foregoing
profits or taking a very low profit till
their costs again become normal ana
they have re-established their trade
Hence. competition from foreign indus-
trial combinations, aided by foreign snip
lines and foreign banks. and backed by
foreign governments. may be even sharp |
er than before the war.
The commission uOeS not cOHSIucI Co-
operation as the most important factor in
foreign trade. but 1t considers 1t an i'm
portant and necessary element in any
effective plan.
three important considera TONS" it
says, ARE involved in this problem. These
are, first. the presence of concerted ac-
ton among the foreign competitors OF
American exporters: second the probable
effect of similar action by American man
ufacturers in foreign trade, including its
possible disadvantages to domestic con-
sumers and smaller competitors. and.
third, the effect of the present laws OF
this -eoantry upon such cooperation on
the part of American manufacturers
Should Strengthen Organization.
1t is apparent. the report sets forth,
that the countrys organization for ex-
port trade must be strengthened if it's
manufacturers and producers are to
compete-on more nearly equal terms
in theworld's commerce. OF possible
dangers-to American consumers it says:
'Tha-commission believes that the
advantages to be gained by effective
cooperation in foreign markets need
not entail any sacrifice of the firmly es-
tablished policy of this country in re-
gard to the maintenance of fair COM
petitive conditions and the prohibition
United States. At the same time CO.
operation for export trade will enable
the exporting manufacturer to realize
an increased return for his products
along with decreased costs through
larger scale production, and the coun-
try will enjoy greater industrial sta
bility resulting from a broader mar
ket"
The present laws. the report says. in
many cases as they stand operate to
n or
ganizations for export trade. Changes
must be made. 1t says. to relieve the
manufacturer of even doubt as to their
application in foreign trade organiza-
ton, but leaving them as at present to
protect the domestic consumer against
combinations to control prices.
The report takes up competitive con-
ditfons in most of the countries Of the
world. devotes a chapter to competition
in South America, gives. competitive
conditions in particular industries and
carries a mass Of tables and statistical
data concerning trade conditions every
where.