The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-10-01
STEEL HEAD URGES
BIG FOREIGN TRADE
James A. Farrell Says Tt Must
Be Encouraged or Country
VIII Suffer.
SERIOUS EFFORT NEEDED
National Council Reflects Old
Officers and Defers Action
on Jones Bill.
SERIOUS EFFORT NEEDED

Expansion of foreign trade is the rem
, edy for business depression caused here
by decreased domestic demands, James
A. Farrell. president of the United States
Steel Corporation, told members of the
National Foreign Trade Council, which
met yesterday at the Biltmore.
! I'm every business there is a part of
the production, roughly estimated as the
last 20 per cent. which cannot remain
unsold If the first so per cent. of the
sales are to prove profitable. Remove
this last 20 per cent. and the whole OPP
Grafton will cease to show a profit. SO
it is with the present productive capac-
ity of the United States; a certain
volume of foreign sales must be main
tanned or the industry of the country
will suffer throughout.
I'm recent months we have seen
various degrees of depression in our
business, resulting largely from de-
creased domestic demands. Such a de-
preston might in part have been avoided
had our producers shown more desire to
add the demands of an understocked
world to those of local markets in the
United States. Quite aside from the de-
velopment or new outlets for our prod
Ucts 1t must be evident that the use of
many markets must tend both to di-
minish the risk incidental to the use of
any one market, and to supplement the
seasonal consumption of one country
with the dissinilar seasonal demands OF
other countries.
These considera tioss speak strongly
Of the need for a permanent American
foreign trade. But such trade cannot
be secured without the serious effort of
our business men They must be in
duced to equip themselves for foreign
trade; to devote some portion of their
products to foreign trade, and to demand
of the Government that willing support
of legitimate enterprise to which they
are entitled. Other nations are older in
the field; some control cables, coaling
stations, harbor privileges, banking facil-
tiles, railroad and shipping systems. 1t
is doubtful whether private American
enterprise can at this late date obtain
similar facilities unaided.
eff however, we can obtain from the
legislative and executive branches of our
Government an understanding of those
problems with which we are faced. / am
confident that the American business
man can meet this foreign competition,
IL he only appreciates the real need for
foreign trade which this country is now
experiencing"
Exemption of American citizens resi-
dent abroad from the Federal income
and excess profits taxes was urged at
the meeting. An investigation of the
situation was decided upon.
The council voted 10 defer action on
the Jones shipping bill, as 1t was de-
clared impossible TO tell how 1t would
be administered until the President had
appointed the five remaining members of
the Shipping Board, which at present
has a membership of but two. A SUBJ
committee on the bill consisting of Mr..
Farrell P. a. S. Franklin. Welding
Ring, Henry Howard and Hendon Cubb
was named.
Cleveland Ohio, was selected as the
place of holding the Eighth National For
eign Trade Convention next spring. New
Orleans, Philadelphia and Boston sent
invitations. The old board Of officers
was reelected.