West Virginia argus. [volume] (Kingwood, W. Va.) 1877-1946, 1916-12-07
In Report Just Made Publie Federal
Trade Commission Offers Sugges-
tions to Americans Engaged IN
International Trade-Should De-
velop Effective Organizations

al Trade Commission has Just com
pleted an extensive investigation o
competitive conditions affecting Amer
leans in international trade and the
result OF its findings has been mad,
public. In it's report the commission
calls attention to the fact that other
nations have marked advantages In
foreign trade from superior facilities
and more effective organization.
IL also points out that doubt and
fear as to legal restrictions prevent
Americans from developing equally
effective organizations for overseas
business, and that the foreign trade oi
American manufacturers and produc.
ers. particularly the smaller concerns
suffers in consequence. II recon-
mends as one OF the necessary steps
TO enable American exporters to NEE,
foreign competitors on more nearly
equal terms in international com
merce. the clarifcation OF the law &c
as TO permit cooperation among the
Americans for export trade.
summary of the incomplete report
made public last May recommended
such legislation and was followed by
introduction of the Webb bill. which
still awaits action and has the in
dorsement of the administration.
1T is frequently asserted" says the
report, the manufacturers end pro-
ducers OF the belligerent 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 COM
petitive power. Much capital, includ-
ing large stocks OF material, will be
needed to restore the wastage OF war.
For some time. also, after peace is de-
ciared 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, in
creased taxes and possibly higher
wages. as = =
I'm their struggle to regain their
former trade such foreign manufac-
turers and producers may be expected
10 fully utilize their highly efficient or
ganization for the promotion and
handling of trade beyond their borders
oven foregoing profits or taking a
very low profit till their costs again
become normal and they have re-es-
tablished their trade. Hence, compe-
tition from foreign industrial combi-
nations. aided by foreign ship lines
and foreign banks and backed by for
eign governments, may be even sharp
er than before the war"
Foreign nations, the commission
says. realizing the necessity of bank
ing and credit facilities to finance
their transactions, have not only es-
tablished connections with banking
houses In every land, but banks OF
their own in all parts OF the world.
Banks with their main Offices in Lon
don, Berlin, Paris, Rome and Vienna
operate hundreds of branches and
agencies in South America, the Orient,
Australasia, the Levant, all around the
coast OF Africa, and far within the
interior. These give the foreign ex-
porter information, extend credit, a.
nance his transactions and constantly
strive to increase the foreign business
OF the mother country. A few foreign
branches OF American banks have re-
Gently been established, but in most
markets the exporters Of this country
must depend on foreign bankers.
Though now increasing" says the
commission, American investments
abroad are comparatively small
British, French, German and other for
eign traders, on the other hand, enjoy
peculiar advantage from the bill
lions OF dollars OF investments made
by their fellow nationals in foreign
countries, frequently on the express
condition that supplies and equipment
should be purchased in the country
furnishing the funds. British and
German investments I'm South Amer.
ican railways and public utilities
French investments in Turkey and
Japanese investments in China and
Manchuria are typical examples. In
consequence, American manufacturer
have frequently found Il impossible
10 sell their products abroad because
the prospective customer was forced
10 purchase from or through interest.
cd investors.
shipping facilities, banking and
credit arrangements" says this report
investment Of capital abroad, and ef
fectiye organization of exporters foi
united action, are all Of great import
ance in international trade. In seek
ing business abroad American manu-
iacturers and producers must meet az
gressive competition from powerful
foreign combinations. often interna
tional in character.
"In Germany. italy, Switzerland
Holland, Sweden, Belgium, japan.
says the commission report, "and GER
tain other countries where poIicie,
concerning Industrial combination
are quite diverse from that OF the Uni
ted States, business men are mucl
freer to cooperate and combine tina,
i in this country. They have develope,
numerous comprehensive comblna
tions. sometimes aided by their GOV
ernments, which effectuaIly unite,