New Mexico state record. (Santa Fe, N.M.) 1914-19??, 1920-09-24
EXPORT TRADE
ACT WORKS WELL
FoRTY-FoUR ASSOCIATIONS ARE
OPERATING UNDER THE
WEBe-PoMERENE LAW.
TEST UNDER BAD CONDITIONS
Smaller American Concerns May Now
Unite for Joint Adventure Into For
eign Trade-Criticism abroad Is
Steadily Decreasing.
BY p.

BY JAMES p. HORNADAY.
Observation-Disclosures are now operat-
Ing under the export trade law Il total
OF A associations, comprising nearly
a thousand concerns whose Offices and
plants are distributed over As states.
The products and commodities export
cd by the different associations come
from all sections of the country. From
California go out lumber. hardware,
chemicals, fertilizer, general merchan-
disc; from Illinois condensed milk,
grain. meat, Office equipment, agricul-
tural implements. machinery. lumber ;
from Wisconsin, cereals. canned goods.
forest products; from Michigan. chem
irais, cereals, foundry equipment. pa
per, furniture, meats; from New York
ana Pennsylvania, locomotives, ce-
lIent, steel, copper, wood products, ma
clinery, textiles, paper, alcohol, chem
icals, cereals, food products, general
merchandise; from Massachusetts, tex
tiles, webbing material. copper, paper,
valves and pipe fittings. chemicals,
cereals, lumber; from North Carolina.
and southern states, tanning materl-
ais, lumber, ~phOsphates, pipe fittings,
meats. locomotives, cl0thespins. gener-
al merchandise.
The b-Pomerene law, or the eN-
port trade act. has been in force n lit
tie more than two years. 1t went into
operation just after the first anniver-
Sary Of the country's entrance into the
world war. 50 that its trial has been
solely under war conditions. or post
war conditions which are nearly if not
entirely as distressing and difficult as
regards foreign trade.
Works Well Despite Difficulties.
During the whole time of the oper-
alton OF this law, the foreign trade of
the United States has been beset by
economic difficulties Of all sorts. Cred
its, exchange and transportation, both
on sea aud on land, have been in such
u state of disorder as TO tend TO retard
the growth and activities of export as
sociations operating under the new
law. So, too, there have been inter
ferences by way of emhargOes. In
spite of all these things and many 9TH
or abnormal conditions, some Of them
worldwide. the export trade act has
been demonstrated by the associations
which have been formed under ii, TO
be II decidedly useful instrument In
promoting the progress of this u
try in foreign commerce.
One OF the traditional criticisms OF
the American exporter has been that
he intended to take n flyer in a for
eign market and TO count the success
OF the venture upon the immediate
profit or loss of the single transaction I;
to enter a market unceremOnlously
and leave IL abruptly. This procedure
did not make for the building up Of
that goodwill the steady growth of
which through the years Is the firm
foundation upon which real extension
In export trade and healthy, steady
profit year after year may rest. The
export trade associations formed I'M
der the export trade act, by virtue Of
the pooling of expenses and perhaps
the pooling OF patience and courage.
have entered n market after careful
and scientific study and examination.
and having entered are prepared to re.
main.
Under the Wcbb.Pomerene law II
is permitted that two or more Ameri-
can cer may associate themselves
for n joint adventure into the export
trade. They may pool their goods.
They may sell mt a common price mu-
tually agreed upon. They may have
"A ommon purse for expenses. They
ma agree upon business practices and,
finally. they may share pro rata in the
gain or loss of the adventure.
In the beginning considerable crlti-
cism was directed against this law by
foreign countries. These criticisms
are not now being renewed TO any
great extent. They become less and
less frequent rs the aims, the theory
and the practice of the law have come
TO he better understood abroad and
perhaps also since II Is coming to be
accepted that the administration OF the
law is being marked with unusual
care. Tho associations thus far oper-
ating ia the foreign trade themselves
have done much to silence criticism.
for the reason that their conduct has
been such during the whole time Of the
operation Of the law that there has
not been n single complaint made by
foreign customers against any of them.
Hardwood Scarce and Costly.
According to the forest service the
scnrcity Of high-grade hardwood
lumber and its increased cost have
contributed largely 10 the increased
cost Of furniture. An increase in
raw material cos to the manufac-
turer Of s. adds 50 to SO TO
the retail charge. and the purchaser
actually pays for the lumber in a
piece OF furniture three or four times
the prewar prices.
Other Industries. such rs those max
ing veueers. handles, vehicles and agri-
cultural implements. which require
hardwoods. have likewise
been seriously affected. The history
Of all these industries has been much