The Washington herald., 1920-02-20
SLOW DEATH TO
FOREIGN TRADE
Cutting Down Of Commerce
Department Appropriar
tons Serious.
ALEXANDER PROTESTS
Says Most Serious Blow
Aimed at Foreign
Business.
ALEXANDER PROTESTS


ed in the legislative appropriation
bill which cuts down the appropria-
tions of the Bureau OF Foreign and
Domestic Commerce to such aniex-
tent that 1t will be but a weakfing
making feeble efforts to compete
with other foreign trade promotion
machines|to gain the world trade,
according to those familiar with
foreign trade conditions.
Secretary Alexander, OF the De-
partmenS of Commerce, In a state
ment issued last night character
lied the congressional action as
"the most serious blow ever aimed
from within at orr foreign trade"
II means. he said. the scrapping of
the American trade promotion ma
chine In the face Of the action Of
European and Japanese govern
ments to increase their foreign
commerce with very large appropri-
ations. They are even copying the
American machine, preparatory to
fighting the commercial war with
Americas own fire, he said.
The congressional action in the
United States comes at a time when
countries the world over are strug-
Cling to gain commercial suprem-
acy following the war. The state
ment that the money is not needed
because there is no field for for
eign commerce in Europe, 1t is said.
Is made without knowledge of the
facts. 1t Is pointed out that many
OF the countries want the United
States products. and reports are
constantly coming to the Foreign
Trade Bureau pointing to the need
Of organized, investigative and trade
promotion work in the foreign field.
The bureau has been working on
short help for years and even now,
with the help 1t has, is feeling the
pinch of governmental small SAL
aries, as it's best personnel is leav-
ing for private fields.
Officiai information came to the
bureau last night that France,
poorer than the United States, is
increasing its trade Investigators.
The minister OF commerce announced
that France was sending commercial
attaches to Germany, Argentina.
Belgium, Brazil, China, Spain, United
States. Great Britain, Italy, Russia.
Poland, Rumania and Switzerland,
and commercial agents to Germany,
Finland. Esthonia, Hungary, Italy.
Japan. Persia. Portugal, Czecho-
Slovakia and Serbia.
The Legislative bill abolishes the
position Of commercial attache for
the United States, leaving the coun-
try practically without any gov
ernmental commerce promoter in
the foreign field. In this connec-
ton, it was pointed out that Great
Britain spends twice as much for
her commercial attaches alone, as
the United States spends for it's
whole trade promotion service, both
foreign and domestic. 's
Secretary Alexander's statement
said. in part:
AT the very time when European
and japanese governments are striv-
ing strenuously to perfect their
trade-promoting machinery through
enormously increased appropria-
tions, this bill proposes to scrap the
American machine, the most effec-
tive and smoothest running that
any government has ever been able
to assemble. At the very time when
other governments are busily en-
gagged in copying this machine al
most to the last detail. this bill
proposes to smash it to smithereens.
AT the very time when our rivals
have an almost overwhelming trade
advantage in exchange rates, this
bill proposes to handicap the Ameri-
can manufacturer by practically
Withdrawing the helping hand of
the Government. Almost on the day
when our merchant marine becomes
fact, 1t is virtually announced
that foreign trade is not worth sup
porting. Just as our banks, wisely
legislated for, find themselves in a
position to finance our trade effi-
ciently as other countries finance
it, it is discovered that foreign
trade promotion is waste OF
money, On the brink Of uncertainty
as to the future of our foreign trade
and therefore of our whole indus
trial fabric, it is decided. in the
name of economy, that we are not
interested in the subject.
The bill aims to abolish the COM
mercial attaches entirely. This serv-
ice was established in 1914 at the
request of American business. 1t
has won the approval and respect
of AmSRicah business. As now con-
Quoted 1t costs S165,OOO, a trifiing
and inadequate sum. There is not
an Office in the service that does
not turn in more than that every
year in actual business, and the
contracts obtained by American
houses through some of the Offices
run into the millions of dollars.
That is taking into account only the
promotion work that can be figured
in millions and cents. Twelve COM
mercial attaches-men trained and
experienced in commercial and eco
nomic matters-who are at present
attached to embassies and legations
in a dozen foreign Capitals where
they are charged specifically and
solely with the promotion of Ameri-
can business interests at this criti-
cal period. will be withdrawn per
emptorily within three months
time and dismissed.
Not all of our trade commission
ers are to be dismissed. but their
number is to be greatly reduced. At
least fifteen trade commissioners
who are reporting on rapidly chang
ing commercial conditions in Euro
pean countries from Denmark to
Austria. will have to be recalled by
the first of May. The cut in the
fund from which the European COM,
missioners are paid means that this
department through the Bureau OF
Foreign and Domestic Commerce,
can pay no attention to the critical
developments in that
part OF the world. Please keep in
mind the fact that these are not
reductions from what we ask for
next year but from what we have
had to keep the machinery running
during a period when foreign trade
was marching time. For promoting
frada In The Ear Eat a -