The Washington times., 1917-10-21

Anorlc1n Anb111Aoor 70 Germany JuIy y
ma 20 February 4. Is17.
Copyright United States. Canada. and In
tsrnationaI. IS17. by the Public Ledger Col
Ambassador Gerard, t0ko, during the
fosr yeGrs preceding the declaration Of
por, sooS IN BeTIiA and IN constant
touch S1tth GeTTIda affairs, has tcTitten
q oiVid stony Of his experiences. The
sfoTV The WoshinotoH Times t0tH pzb-
ksb IN dolly iHstGIInleatS, Of tchtch the
foEIot0ta1 V the thfrtv-siEtk No docE-
went Of diplomacy tcds ever more vital
ST more tntsresttaG.
Much Of the commercial success Of
the Germans during the last forty
years is due to the fact that each
manufacturer, each discoverer in
Germany, each exporter knew that
the whole weight and power OF
the government was behind him
in his efforts to increase his
business. On the other hand, in
America, business men have been ter
roriEed, almost into inaction, by con-
slant prosecution. What was a crime
!n one part Of the United tSates under
one circuit court OF appeals was q,
perfectly legitimate act In. another.
II we have to meet the intense COM
petition Of Germany after the war,
we. have got to view all these busi-
ness problems from new angles.
For instance, there is the question
Of fre ports. Representative Murray
Hubert has introduced in the House
of Representatives a resolution
directing the Secretary Of the Treas
ury, the Secretary Of War. and the
Secretary Of Commerce to report to
Congress es to the advisability Of
the establishment of free ports with
In the limits Of the established GUS
toms of the United States.
Advantage Of Free Ports.
Free ports exist IN Germany and have
existed for q long time. although Ger
many is q country with a protective
tarin In q free port raw goods are
manufactured and then exported. of
permitting the establishment OF free
ports, because by this manufacture OF
raw materials and their re-export. with
out being subject to duty. money is
earned by the manufacturers to the
beneht Of their own country and en-
ployment is given to many worklnsmen
thus, OF course. improving the condition
Of these workingmen and Of all others
In the country. It is self-evident that
the employment OF each workingman in
ia ,ur1aN lob a,rfa
cept for the existence Of the free port
withdraws that worlingman from the
general labor market and therefore.
benefits the position Of his remaining
fellow laborers.
Although free ports do NOT exist in the
United States. an attempt has been
made to give certain industries. by
means Of what are known as draw
backs" the same benent that they
would enjoy were free ports existent in
our country.
Thus the rehners Of raw sugar from
Cuba pay duty on this sugar when It
enters the United States, but receive
this duty back when a corresponding
amount OF refined sugar Is exported to
other countries.
Attack on System
There has lately been an attack
made upon this system-in the case.
however, of the sugar refners only
and the question has been treated in
some newspapers as II these refners
were obtaining some unfair advan.
tage from the Government; whereas
as q matter OF fact, the allowance OF
these drawbacks" enables the sugar
rehners to carry on the refining OF
suGar for export much as they would
II their rehneries existed in free ports
modelled on the German system.
The repeal OF the provision allow.
ing drawbacks" in this and other
industries will probably send the in.
duktries TO Canada or to some other
territory where this system, eQuiva.
lent to the free port, Is permitted to
exist.
A few days before I left Germany
had a conYersation with manufac-
turer of munitions who employs
about eighteen thousand people in his
factories, which, before the war
manufactured articles other than mu-
nitions. asked him how the govern
ment treated the manufacturers OF
munitions, and he said that they were
allowed TO make good profts, al
though they had to pay out a great
proportion OF these prohts In the
form OF taxes on their excess or war
profits; that the government desired
20 encourage manufacturers TO turn
their plants into factories for the
making OF all articles required by
the natien in sustaining war, and