The sun., 1916-11-11

nAeu scaie or prices.
The selling price is fixed h, tine q,
ecutivc board, which. OWNS +, H..
ease with which the Unanimous ,ou
sent Of the companies is obtained ,,t
owing also to the German ur ,..,n
tariff. has no difficulty in mtr'trr.
a sufficiently remuncrativc pric. .p o.
homo market.
Overproduction is ono or tlr mn.
effective methods Of forcing down M,
selling price of an article. Tl.r.,,..
whenever a market presents inji,,.
tons OF extreme stability Of uri.o c,,.
manufacturer will attempt to .to.i
march on the others by ov~crpIudY,lnc
lie thus increases the unit az prob,
that is. the profit on each .r,ic,
turned out, but he also increases i.
number of articles turncd out. ana
is the product of these two l.c,o,,
that constitutes his total profit. In,
II all h manufacturers are DONG ,h,.
n IL consumption does not .my,.
taneously expand, a point Will 70.
reached where there IL a supcrabp,
dance OF the article In question.
crisis Is set up. in which the imm.
'i"tN u"bSVi IN 'he iON'llhE OF -.
price OF the article. a condition whit,
the kartell opposes, as We have see,
by decreeing the maintenance NJ
certain price. But II tn, k,r,,
stopped at that the excess Of produ,
ton over consumption would incre.,,
and the danger would he mercy Dos.
loned n aggravated. In order d,
protect the industry completely r.
kartell must regulate product ON a,
make every effort to stimuiat" cXpo,
tation. Accordingly the execute.
board fixce each year the amour, Il.
each may manufnrturo
a Frenchman or an Englishns
might object to this method whc,
deprives the manufacturer OF Il cor.
tain part of the control of his ov
business. But the German Naney,.
that voluntary collective init. a,.ye
superior to individual initiative. T.
sides II must not be forgotten Tia,
limit the output does not ,l'orf.r.
win h internal autonomy of the .
dustry. n that the manufacture "a,
mains he master of his mode ur w,
duction, FOR the kartell does not leo.
the methods OF work. each as,7ci,..
retains his private ownership ~ La.
patents. not being Obliged 10 ,har.
them with his fellows.
The matter OF liking u,v mn,
each liz 10 manufacture is no, wi,l.,.
its difficulties. Theoretically. Ga,
hrm is favored in accordance WI 20.
productive capacity. but this i "A ,o,.
elastic measure. In practice. all ,o,r.
pete for allotnents of Orders. Ana
settlements are only madc after o,sr.
orat" mutual concessions and .
commodations.
but the burden OF this Limitation g,
very largely compensated by tie ,or.
sequences OF the policy of expor,a o.,
which the German kartcils have Icon
SO theoretically pursuing for to las
thirty years. Ricsscr says; ~ j. +,
policy born of necessity" You carr.
limit tho output Of an entire indus'rv
with %.npunity. FOR you run IN. NIX
ot thus forcing up the selling p' q,
to enormous heights. You arc ,hr.r.
fore Obliged. willy-nilly, to oycrp-..
dutc. An amount equal to Tn. ,ui.
sumption within the national lcris~S
II reserved for the home marl., d.
IN" adNantageous price which tho NI,.
tel, aided by n strong protective, 'a.,r
maintains for GERMANY, TN, re-, .
injected into the foreign market W....
II is disposed Of at any risk. FOR a p'.'
or Tor cost, or AZ q loss. This pro -.
o. dumping manufactures .,, re
Tnuy been reSorted to ny ,i.rn.l
on n gigantic scale. and has ,l,.,. 3, ~
In some foreign markets. uo.Ift,
france. in disCouraging native .r
petition To such an c\truf t.r
superstition has become u'li. ,..,.
mat 10 attempt To comu.'n wl,. ,
terHlans commercially l. a. t,.. .
impossib.lity. al least in certain Coo.
moditics.
II took the commercial midi las.
Of Germany a long time ~ rrt
that they had better look into 3D., m
yer OF their N.eh prices ~ lom, Sc
thcN w"r" permitting the n..rt.
tlrers ~ soil cheap - f~or,I.u,,- '.
about 1900 q rather ~'iu1- o..
against tho kar,o'ls hect, 90.
nate. In order to make souY. .,.
siohs To public opinion tho lr.pr
'oN"rnm"nt. toward the eni rf no.
appointed an investigating ,ur.r'".,
~ determine what intu.r,, o..
tells n mad IN %hrinGuS aNo.' o..
cent crisis in tho m"lallIr.i.. r.
ric The commissions uuo.
clndel = statement thai pho
Won have been worse had II .,. So.
for the existence Of the Kari. ID,
whi!" there cannot hc any p
the commission had stud.eI O..