The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1918-06-17
AMERICA FACES
TRADE COMBAT
WITH GERMANY
Berlin-ruled Monopolies Pre-
pare for Crusade After the
War.

WASHINGTON, d. c., June IL
The American producer and merchant
will be confronted by German govern
ment buying monopolies and with the
serious competition Of syndicated Ger
man industries in his home and for
eign markets after the war, according
to a report to this government on syn
dication in Germany.
1.-The government monopolization OF
practically all produce in Germany.
the further syndication OF important
branches of industry, the restrictions
placed upon finance, the merchant and
shipping trades, which means COM
merce as a whole, deserves the earnest
attention OF the American government
and business world" says the report.
This compulsory concentration made
necessary by the war to obtain the
highest efficiency in production. to-
gether with the greatest economy in
employment Of labor, raw material,
credit, and transport facilities. as well
as for revenue purposes, will be car
ried over into times Of peace, In order
to prevent a financial panic and in
dustrial depression, with the conse-
Quent depreciation in taxable values.
smaller men S0ci OUT.
"The smaller manufacturer who has
difficulty in continuing operations on
account of the scarcity of labor, raw
material, and working capital, has in
many cases sold out to the greater
concerns in his branch and before
compulsory syndication would close
down his works. The new law which
has been enacted forbidding the for
nation OF new stock companies, with a
capital Of over 100000 marks, without
special sanction of the government,
effectively puts aside any competition
with these syndicates.
THE new ship subsidy bill passed
by the reichstag for the rehabilitation
OF the German merchant marine, while
extremely liberal in the indemnities to
be paid the ship owners for losses,
damages, and maintenance Of ships
occasioned by the war, means in real
ity almost a complete government con-
troll of German overseas shipping for
years to come.
Retention Of Monopoiies.
The retention of these monoplies,
created during the war, having pur
chasing power compatible with the
available foreign credit and ships ton
mage, and which will distribute the
product according to the needs of the
merchant and supply at hand, appears
to be rather a necessity in the import
markets after peace Is restored. At
least until such time as the export
of German productions secures for her
a foreign credit that will balance
the strain on her gold reserves.
"Of course, through the entire or
partial elimination of open commerce
in foreign trade transactions the Ger
man government may meet with OBJ
stacles, such as counter tariff meas
ures and embargoes that cannot be
overcome; or complete breakdown
OF this system when pitted against the
unrestricted trading Of the outside
world.
Must Combat System.
But, nevertheless, some method Of
combating this system at the start
must be found. through combinations
of producers, bankers and shippers,
when trading with Germany, and with
other countries contemplating similar
monopolies. comes into question, or
through government regulations and
restrictions with regard to the export
of essential raw materials, that will
assure an equally good foreign market
for our manufactured goods.
otherwise our commerce will suf-
fer from the periodical exclusion of
certain wares In some countries, and
serious manipulations in our produce
and shipping markets are likely"