Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1920-08-30
He American Automobile Abroad
By Walter Draks.)

SMs tByy waiter Drake.)
Ss &TNbahN no%nnore sudden chanre
M4llsse ever occur III tho fundAsnental9
shebee1 o4 the human rae than In the
Anc9ptAnce Of b automobile as 4,
sMxSnnh O3 transportation IN q frac-1
b time that u took the rail-
nd steamboat to displace the
SSSsHNhicle came into Its own rs q family
Ssnecesstty. RI Today the small farmer
who raises the money to buy q car for
" nufpo9eHso utility or pleasure 10 not
looked upon by the neighbors rs IL
ssnnisct ior guardianshtp i is not
ls~ asnecessityys Of life in our own coun-
try whore there will soon bSNten MIL
~ lion in use; but Few have the knOwl-
edke of foreign countries or the vision
e their Possibilities to realize that
Sonlly b production OF motor vehicles
II Akld h building OF roads for this use
ltriast the Eale in enormous quantities
I'm foreign markets
sS Played Big Part ID War.
The part taken by motor transpor-
+ tation in the great war demonstrated
Immediately and completely that the
motor truck and passenger car oc-
cnpys first place as the most adaptable
undoubtedly obtAinAb1e motor equip
ntent- b result has been that no re-
III 80 AS0V160Nx 0VSAOI aH Oh 81 Lie 4
warning countries Is n3ore insistent
than the demand for automotive
equipment. To satisfy this demand as
III exists today and as It continues to
Erow In the process of rehabilitation
~ b problem OF the American auto
mobile manufacturers. A recent au-
thoritntive report Of an investigation
@8of44 the conditions In Europe. states
& that 1t win be many years before
Y European manufacturers will be able
TO- supply their own markets. It is
not likely that the large extensaonS Of
poses. and the steps taken In some
cases to introduce American methods
&of large scale production, will succeed
In preventing The American manufac-
tureFs from securing the greater part
Of the European business. The Ma
msfce II now endeavoring to have re-
moved one obstacle IN the way Of ex-
tending the import Of American cars
In Europe, by the proposal that the.
present import duty into the United;
States be reduced to 80 per cent upon
cArgr0f all values. The duty.as it now
stands Is As per cent or car having
an import valuation Of $4,000 and
over. and 80 per cent on those under
that valuation. The construction
4 placed upon this tariff law by Euro
pean countries has been to consider
aNOOIY UQO FOuIy dS lu0 EAxkUCT rate
and to impose correspondingly high
rates upon imports into their coun-.
tries. A reduction by the United
States to the lower rate will. It is ex-
pected, induce the material lowering
Of European import duties. .
In connection with the presentation
Of this request to the tariff authod-
ties. an unusual and significant ex-
ample of the trade industrial co-op-
Grafton may be referred to here. In
spite Of the fact that \ considerable
number of the members Of the Ma
tiondl Automobile Chamber of Com
merce manufacture cars whose sale
might be affected in the United States
by the reduction Of the import duty
from as per cent to 80 per cent on
automobiles valued at $4,000 or over,
h entire membership of 1913 COM
panies was unanimous in urging the
reduction of%our import duty, on the
broad grounds of general bene1t to
the industry. In urging this reduc-
ton of duty, it is the belief OF our
manufacturers that this Is the time to
strengthen the already favorable po-
sition of American motor vehicles in
foreign markets. The DISCRIMINATION
of transport facilities in the bolliger-.
emit countries of Europe and the sub!
sequent increased demand for our
product, due to the inability OF Euro,
nean& manufacturers to produce, make
# possible for American Trslnnfacur.
5ers to ac6mplete- their domination of
these markets begun before the war,
The extremely adverse rates of x
change, together with European
tariffs, almost, prohibitive in many in
stances. resulted in retail. prices in
b most. cases twice those in h United
States. To remove the excessive tariff
barrier will greatly stimulate the pur-
chase Of American cars at this tire
when the purchasing power Of Euro
pean money is SO impaired.
Future Discussed.
The future Of the American auto
mobile manufacturers is b question OF
frequent discussion, in view Of this
already huge production before the
war n of the extension of capacity
since. Our manufactures are not
unaware of the necessity of providing
for the absorption Of their product
against the time when the domestic
market will not take it all. There are
nearly eight million automobiles in
use in b United States or almost 90
s1per cent of the number in the entire
~ world. This is substantially one to
IL every Is persons in our country. Our
manufacturers are now producing at
B b rate of two million a year-but
this does not mean, however. that the
domestic market will reach the So
called point of s%aturation in a few
years OF. indeed, in many years.
But with these figures before them,
the American manufacturers are pre-
pAein8 for the g~reatsforeign business
. the future which will furnish an
eu4let or their product and become a
great stabifizing factor in their bust
ne1s. Climatic conditions in the Unit
edsStAteD are responsible for the slack
period in automobile sales which oc-
eurs during the winter months. Into
this the foreign demand ATS in such q
mannera ~ to enable many Of the
M-anufacturers, especially those pro-
sducinG b lower-priced cars, to OPP
Skerate their plants at q profitable rate
through the winter months. Decem-
n ber. january and February are the
ndOlEthe when orders are lowest in the
NAtn In which A0W-and wet weather
the roads UNIT fof.travel. and
fhe fOrsign dereand Is biggest during
hoee months.