Pierre weekly free press. (Pierre, S.D.) 1889-19??, 1916-12-07
TRADE BOARD HAS
FEW FEARS ABOUT
SLUMP
Federal Relations Commission
Says Warning Powers Will
Face Great Problems
When War Ends.
NO IMMEDIATE DUMPING
Long Time Required to Get
Back on Normal Basis
America Needs Laws on
Collective Selling.
NO IMMEDIATE DUMPING

Washington. Dec. 4.-In the most
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
VIII 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.
For Collective Selling.
Laws to put the American exporter
on a 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 1t still was in
complete. recommended sue .legisla-
ton and was followed by introduction
Of the Webb bill which still awaits &C
ton and has the Endorsement of the
administration.
In studying the export situation, the
trade commission, it is declared. hi
tried to take the problem in it's broau
historical aspect, considering the pres
ent war as a temporary interlude. the
permanent Influence of which it is diff
ficult to estimate.
1T is frequently asserted" says the
report, the manufacturers and pro-
ducers of the belligerent countries will
take effective measures to regain their
former trade II is likely, however, that
some time viii pas after the close Of
+ hy y-rS lrf~5-~ tl~,, I'm 1- I, l.
exert their normal competitive power.
Much capital, including large stocks
of material, Will be needed to restore
the Wastages of war. For some time,
also. after peace is declared their costs
OF manufacture are likely 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.
Expect Sharp Competition.
in their struggle to regain their for
mer trade such foreign manufacturers
and producers nlay be expected to fully
utilize their highly efficient organiza-
tons for the promotion and handling
of trade beyond their borders. even
faregoing profits or taking a very low
profit till their costs again become nor
mai and they ave reestablished their
trade. Hence. competition from foreign
industrial combinations, aided by
foreign ship lines and foreign banks,
and backed by foreign governments,
war"
The commission does not consider
cooperation as the most important fac
tor in foreign trade, but it considers II
an important and necessary element in
any effective plan.
"lhree Important considerations" it
SAYS, are involved in this problem
These are, first, the presence of con
csfted action among the foreign compe-
tltors of American exporters. second
the probable effect of similar action by
Ameflcan manufacturers in foreign
trade. including it's possible disadvant-
ages to domestic consumers and SMALL
er competitors; and. third, the effect of
inc present laws of this country upon
such cooperation on the part of Ameri-
can manufacturers"
No Uphcavai Foreseen.
1t Is apparent. the report sets forth.
that he ountry's organization for ex-
port trade must be strengthened if it's
manufacturers and producers are to
compete on more nearly equal terms in
the worlds commerce. OF possible
dangers to American consumers it saws:
The commission believes that the
advantages to be gained by effective
cooperation in foreign markets need not
entail any sacrifice of the firmly estab-
llshed policy Of this country in regard
to the maintenance Of fair competitive
conditions and the prohibition of mo-
nopolistic control within the United
States. At the same time cooperation for
export trade will enable the exporting
manufacturer to realize an Increased
return for his products along with de-
creased costs through larger scale pro
duction. n the country will eniov
greater industrial stability resulting
from a broader market"
The present laws, the report saws. in
many cases as they stand operate to
prevent formation OF cooperative or
CARNATIONS for export trade. Change
must be made, it says, to relieve he
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-
ditions in most of the countries Of the
world devote aschapter to competition
in South America, gives comDetitivp
conditions in particular industries and
carries mass of tables and statistical
data concerning trade conditions every
where.