East Oregonian : E.O. (Pendleton, OR) 1888-current, 1916-10-23

THE home market can no longer
absorb the output of our manuIac-
turing plants, and when the war ends
we shall be obliged to do one of two
things: Dismantle the excess facto-
rles scrap the machinery throw men
out of work by the thousand, or de-
Nelop foreign markets and keep our
nlants running at capacity,
Our success in holding our newly
gained trade when the war Is over
will depend upon several things, es-
necially upon our sales methods up
on quality. and upon price. Our
methods of selling goods in foreign
countries have at times been open to
criticism but American statesmen are
using more tact than formerly anu
complaints on this score are becom-
ing less frequent. We must not demand
unreasonable credit terms but should
! at least meet our customers salf way
So far as quality goes, there is little
u ound for complaint American
goods are equal in quality to any In
the world.
But they are often high priced, and
in that respect we have always been
somewhat at a disadvantage. II we
are to meet the prices Of foreign
competitors we must offset the cheap
labor of Europe by manufacturing ef-
ficiency. We have genius for or
ganization that has resulted in the
building up of some of the most ell
cient manufacturing plants in the
world, but we must look the fact IN
the face that such plants are the ex-
ception with US. Slipshod methods
are all too frequently met with even
in some of our great fatories, and
without any intention of talking poll
tics I am afraid we must attribute
much of this inefficiency to high tar.
ifs. We have been 80 safe from
competition that we have never ac-
au!red the habit of figuring as close
" as the Europeans do. The depart
ment of commerce has made some
exhaustive studies of the pottery
hosiery, textile and other
industries and It is surprising how
many plants we found that had no
semhlance of adequate cost-finding
systems.
Instead OF regarding as easy mon
ey the flood of gold now pouring into
the country, this new wealth should
he put into the latest and best ma
chinery. Now Is the time to get
down to the very bedrock principles
of manufacturing. The low-priced
automobile is a striking example OF
what American manufacturing efti-
cheney can do. The manufacturers
pay higher wages than are paid In
Europe yet they undersell European
manufacturers on their own ground,
with low price as the principal selling
point. Factory organization Is the
secret of our success with automo-
biles. Similar efficiency in other lines
will lead to similar success. The re-
Gently increased volume Of produ-
tion in nearly all lines viii be a great
help in attaining factory efficiency
because increased volume reduces
until costs.
It is within our power to retain
most OF our recently gained trade
There is no good reason why our
production should fall off greatly
when the war is over. We have sue
cessfully adapted ourselves to the
new conditions. We have learned
great deal about the new markets
that ought to stand us in good steau
when the old competition returns
While much of our munitions trade
IL temporary. It should be remember
cd that it Is but a very small part oil
our total trade and that some OF our
very best markets will be reopeneu
when peace is made. surely, Win III
wealth we have accumulatd, with our
increased efficiency, with our genius
for ORGANIZATION. with the urgent no
cessity before US Of holding up our
end. with the great handicaps that
will hinder our competitors, with all
these factors in mind, 1t is folly to
sav that we can not retain the bulk
NJ our new business or that we VIII
not.
All are willing to concede that Am
erican business has reached turn
ing point. Men are now thinking In
millions where a few years ago they
thought in thousands. They are real
izlne for the first time the existence
Of foreign markets. They are begin
ming 10 make their first serious study
NJ foreign trade. 1 look to see our
manufacture take o different form
We shall export less raw material
such as wheat and cotton, and more
finished products. such as flour. cot
make our own dyes. We are begin
ming to import tin ore and make our
own tin. All these are indications OF
the new philosophy Of business.
Up to the present we have regard
"a foreion markets as dumping
ground for over-product'on. for goods
which the American publ'c failed to
Inv. Now we are hegInn'ne to learn
that fnreIen markets ore verv profit
ebie and that thew often desire goods
d,fsa~ant from thoae cold nj home. Tn