Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1918-02-21

Discussing postwar export trade re-
Gently. Geo. Ed. Smith. president OF the
American Manufacturer Export AS
ISOLATION, said: with the rest Of the
world sharing u domestic markets
after the war we must arrange to share
foreign markets with the rest of the
world.
when peace comes it will bring with
it a readjustment which we must be
prepared to face with wisdom and
courage. The domestic markets of
America will be opened once more to
foreign manufacturers; the world
trade, which now invites us, will afford
the warning nations of Europe the op-
portunity TO rebuild their fortunes. At
home and abroad the American bust
ness man will find himself engaged IN
a competition more energetic than he
has ever known before. 1t therefore
seems to me to be inevitable that n
Of two things must happen: either the
, nation must resign itself 70 pocketins
its war profits and permit its markets,
domestic and foreign to be divided by
other nations, O. it must determine to
create new markets for itself to take
the place of those it is destined to lose.
The first contingency is not pleasant to
contemplate. The minute a nation
ceases to 80 forward it begins 70 SO
States approach the end of the wal
without definite plans as to the ac-
quisition of new markets, and the
business of the country returns to the
maximum established before the war,
our present prosperity will disappear
as quickly as it anne. There is a way
a clear way, for the United States to
avoid the economic dangers or romor-
row. The loss of markets which we
can now foresee may be counterbal-
anced by the creation of new mar
kets.'
To just what extent Mr.. Smith
would have the rest of the world share
our domestic markets he does not make
known. Would he have it done under
what Senator Underwood called Il
competitive tariff" an expression
tariff commission? 1t would seem that
the ten months lesson we received I'M
the European war broke out, would in
cline him against such a method OF
sharing our domestic trade. The
American business man expects more
energetic competition after the war
than he has ever known before, but he
cannot afford to have European ma
i tions rebuilding their fortunes in our
home market.
Nor is it clear that Mr.. Smith has
discovered the controlling factor in as
surfing our postwar prosperity. We
exported S4,O54, OO0, 900 worth of goods
to Europe last year., compared with
81, 500, O00, 900 the year before the war.
Every one knows the reason for that.
to North America increased from
$60l ,OO0, 900 to 81, 265, 900, 900; to South
America, from STAT. 900, 900 to $31c,-
900. 900; to Asia. s2S1, 5000 to s431,-
000.0 to Oceania, $685. 900, 600 to SIN
000, 900. Every one knows the reason
for that. On the other hand, imports
rose from $l,793.O 900. 900 to $c,952,O O0,-
900, the two years compared. Now a
great deal of the export trade must of
necessity be lost when Europe is at
peace, and the rest of the world re-
sumes trade with Europe.
Two things are to be borne In mind:
Europe must recoup herself through
the sale of her manufactures, selling at
the smallest possible margin of profit
in order to keep her vast army of
laborcrs employed, and to pay ven the
interest on her debts, and except for
raw and structural materials Europe
will not be a very good customer for
us. Second, if the bars are down to
European competition in this country.
it will result in such a Gripping of our
mills as greatly to increase the unit
cost of production, which requires full
time at maximum production to reduce
to a minimum. If, added to our high
wage scale we have production costs
increased by curtailed operation, how
can we develop foreign markets in
competition with Europe. The best
assurance of postwar prosperity is the
simplest one-a protective tariff when
will preserve to us Jul own markets
from which we can extend into other
fields.