The Barre daily times. (Barre, Vt.) 1897-1959, 1916-12-02
COMPETITION NOT
EXPECTED SOON
AFTER THE WAR
U. S. Federal Trade Commission Thinks
That 1t Will Take Europe Some Time
to Get Into Position for Competition
But Advises American Selling
Cooperation.

Cooperation.
Washington, d. c., Dec. 2-ln the most
comprehensive review of foreign trade
conditions ever prepared by any govern
mental agency, the federal trade com
mission to-day expressed opinion that
the much discussed after -the-war com
mercial competition from Europe will
not be likely to come for some time ait
er the conclusion of peace. High cost OF
raw material, increased taxes, probably
higher wages, to say nothing of the cap
ital and stocks of material necessary to
repair the wastages of war, the report
says, are expected to delay the full pow
er of European competition until 1t re-
gains its normal state.
Laws to put the American exporter on
a footing with his foreign rival by au-
thorization of collective foreign selling
agencies are recommended. A brief sum.
mary of the report made public last
MAY, while it still was incomplete, rec
commended such legislation and was fol-
lowed by introduction of the Webb bill
which still awaits action and has the
endorsement of the administration.
trade commission, it is declared, has tried
to take the problem in its broad histor-
cal aspect, considering the present war
as temporary interlude, the permanent
influence of which it is difficult to esti-
mate.
"It is frequently asserted" says the
report, "the manufacturers and producers
of the belligerent countries will take et-
fectve 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 capl-
tai, 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 in
creased costs of raw material increased
taxes and possibly higher wages
'In their struggle TO regain their for
mer trade such foreign manufacturers and
producers may be expected to fully utll-
ize their highly efficient organiza tions for
the promotion and handling of trade be-
yond their borders, even foregoing profits
or taking a very low profit till their
costs again become normal and they
have re-esta blished their trade. Hence,
from foreign industrial COM
binations, aided by foreign ship lines
and foreign banks, and backed by for
eign governments, may be even sharper
than before the war"
The commission does not consider CO.
operation as the most important factor
in foreign trade, but it considers it an
important and necessary element in any
foreign plan.
'Three important considerati tions,' it !
These are, first, the presence of con |
,erted action among the foreign com
Detitors of American exporters; second, |
he probable effect of similar action by
American manufacturers in foreign trade, |
its possible disadvantages to
domestic consumers and smaller competi |
.ors; and, third, the effect of the present |
avs of this country upon such cooper
alton on the part of American manufac-
.urers."
1t is apparent, the report sets forth,
that the eountry's organization for ex-
port trade must be strengthened if its |
and producers are to com
pete on more nearly equal terms in the
worlds commerce. OF possible dangers
20 American consumers it says:
"The commission believes that the ad
gantages to be gained by effective CO.
operation in foreign markets need not !
entail any sacrifice of the firmly estab- |
shed policy of this country in regard to
he maintenance of fair competitive con- |
litions and the prohibition of monopo- |
istic control within the United States,
At the same time cooperation for ex-
port trade will enable the exporting man
ifacturer to realize an increased return |
or his products along with decreased
,osts through larger scale production,
md the country will enjoy greater in
lustrial stability resulting from broad
n market"
The present laws, the report says, in
many cases as they stand operate to
prevent formation of cooperative organ
cations for export trade. Changes must
,e made, it says, to relieve the manu-
aeturer of even doubt as to their APP
,lication in foreign trade organization,
nut leaving them as at present to pro-
ect the domestic consumer against COM
,inatons to control prices.
The report takes up competitive con-
Iitions i'm most of the countries of the
world, devotes a chapter to competition
n South America, gives competitive con-
Iitions in particular industries and car
les a mass of tables and statistical data
oncernng trade conditions everywhere.
TO INVESTIGATE HIGH PRICES.