Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1916-12-02
FEDERAL TRADE COMMISSION
FAILS TO SEE IMMEDIATE
CONTEST FOR TRADE.
WILL REQUIRE TIME TO
RECOVER TRADE BALANCE
Higher Taxes Because Of War, Higher
Wages, Depleted Stocks Of Raw Ma
terials Expected to Delay Full Power
Of European Composition Until it
Resains Its Normal State.

| comprehensive review of foreign trade
conditions ever prepared by any gov
ernmental agency, the federal trade
commission today expressed opinion
that the much discussed after the war
Commercial competition from Europe
will not be likely to come for some
time after the conclusion 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
European competition until it regains
its normal state.
Laws TO put the American exporter
on footing with his foreign rival by
authorization of collective foreign sell
| ing agencies are recommended A
brief summary of the report made
| public last May, while it still was in
! complete, recommended such legisla-
| ton and was followed by introduce
| tior Of the Webb bill which still awaits
action and has the endorsement Of the
administration.
In studying the export situation, the
| trade commission, it is declared, has
| tried to take the problem in its broad
| historical aspect. considering the
present war as temporary @interlude,
| the permanent influence Of which it is
difficult to estimate.
st is frequently asserted says the
| report, the manufacturers and pro-
| ducers of the beliigerent countries
| will take effective measures to regain
| their former trade. 1t is likely, how
| ever that some time will pass after
| the close of the war before they will
| be able to exert their normal cornpeti-
| tive power. Much capital, including
| large stocks of material, will be
| needed TO restore the wastage of war.
I'or some time. also, after peace is de-
clared their costs of manufacture are
| likely to be higher in many lines Of in
dustry than before the war. due to in
| creased costs Of raw material. in
creased taxes and possibly higher
wages.
in their struggle to regain their
former trade foreign manufacturers and
pi oducers may be expected to fully
| utilize their highly efficient organiza-
tons for the promotion and handling
u trade beyond their borders even
| foregoing profits or taking very low
profit till their costs again become
normal and they re- establish 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 does not consider
cooperation as the most important
factor in foreign trade, but it considers
it an important and necessary element
in any effective plan.
Three Important Factors.
Three important considerations it
says, ARE involved in this problem.
These are, first, the presence of con-
certed action among the foreign COM
petitors Of American exporters; second,
tho probable effect of similar action
by American manufacturers in foreign
trade, including its possible disad-
vantages to domestic consumers and
smaller competitors: and, third, the
effect OF the present laws Of this coun-
try upon such cooperation on the
part OF American manufacturers"
II Is apparent, the report sets forth,
that the country's organization for ex-
port trade must be strengthened II its
manufacturers and producers are tc
compete on more nearly equal terms
in the worlds commerce. or possible
dangers to American consumers 1t
says: 1.-The commission believes that
the advantage to be gained by effective
cooperation in foreign markets need
not entail any sacrifice Of the firmly
esta hltshed policy Of this country in
regard to the maintenance Of fair com
patitive conditions and the prohibition
of monopolistic control within the
United States. At the same time CO.
operation for export trade will en-
able the exporting manufacturer tc
4 realize an increased return for his
products along with decreased costs
thru larger scale production, and the
country will enjoy greater industrial
stability resulting from a broader
market"
The present laws, the report says, in
} many cases as they stand operate tc
prevent formation Of cooperative
organizations for export traoe
Changes must be made, 1t says, to re-
lieve the manufacturer OF even doup,
as to their application in foreign trace
organization, but leaving them as a.
present to protect the domestic con-
sumner against combinations to contro
prices.
The report takes up competitive
conditions in most Of the countries o.
the world. devotes a chapter to com
petition in South America, gives COM
petitive conditions in particular IN.
. dustries and carries mass OF tables
and statistical data concerning trade
conditions everywhere.
a.,,N- onIcCe c0NcREss TOPIC