The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1921-05-26
BUSINESS OF
EUROPE joins
AGAINST U. S.
Several Important F oreign
Governments Sanction Con-
solidation Of Industries TO
Gain Exclusiveness.
GRAB UP CONCESSIONS
BY MARK SULLIVAN

BY MARK SULLIVAN
WASHINGTON, May 26.-Every-
thing comes back to International re-
lations. When Herbert Hoover was
made secretary of commerce, he in.
stantly put his mind upon the obvious
job of that department, which is to
facilitate foreign trade.
The results of his first survey were
reflected in speech which he made
during the first week he was in office.
In that speech ne said that the great
underlying difficult is the paralysis
of international trade" This is the
factor which is causing economic dis
tress in nearly every industry in the
United States. and especially in the
farming industry. When Secretary
Hoover considered the names Of curing
this trouble and reviving our export
trade, he encountered situation
which he has alluded to during the
past few days. He discovered that
several important foreign govern
ments have entered upon a practice
of exclusiveness in favor OF their in
dustries, which render the efforts OF
American industries in foreign coun-
tries difficult if not futile.
Sanction Combines.
This exclusiveness goes to a length
of cooperation between government
and industry and of government sane
tion for the consolidation of big bust
ness such as we in America have al
ways opposed. AS Hoover expressed
1t, I'VE now face a new phenomenon
in the worlds trade in the possibility
of combinations of buyers of our COM
modities. Such combinations are en-
abled by the large volume purchased,
to greatly influence the level of prices.
Il do not think that any student of
the movements of wheat prices in the
last 12 months can ignore the material
influences Of various European gov
eminent purchases in the depression
OF our wheat prices. Such import COM
binations not only exist for food, but
also include in certain countries coal.
phosphates, hides. and leather and
some other commodities in which we
are interested" &
influence Prices.
What has really happened is that for
the purpose of the purchase of Anieri
can goods. several foreign govern.
ments either officially or by tacits en-
couragement, have consolidated all
their imports to the point where our
American products are bought in ef-
feet by single purchasing agent. The
disadvantage to the American export
er, who must sell in a market where
all the buying is done by one agency
are obvious. Ultimately. the natural
remedy for such a condition would be
to permit our exporters to unite in a
common selling agency.
What Secretary Hoover has discov-
cred and is concerned about goes even
further than this. He found THAT
many nations are restricting develop
ment of natural resources within their
boundaries to their own citizens.
They do not allow citizens of foreign
countries an equality of opportunity
with their own" Still further than
this Hoover discovered that various
governments are directly or indirectly
lending influence and support to Sc
cure for their citizens in countries for
eign to them exclusive concessions
over raw material and the implements
of commerce"
Grab Concessions.
The example of this sort Of thing,
which is not familiar to our public is
the British and French action with re.
gard to oil in Mesopotamia and else
where. But the Mesopotamian case
merely happens to be the one that has
become public. The same kind or
thing is practiced in other lines, and
in other territories.
In our own dependency the Philip
pines. for example we face a situation
in which the British grant an exemp-
tion from income taxes to British cor
porations doing business there, while
America exacts an income tax from
the American corporations in the Phil
ippines doing a competitive business
with the British This sort of thing"
Mr.. Hoover says. represent a tenden-
cy toward militant exploitation and
domination of commerce Of which the
whole commercial world must take
notice. 1t can. If it goes on, become
menace to the peace of the world.
These attempts to dominate, formu-
lated by the encouragement and sup
port of governments, at once claim
diplomatic support. They lead gov
ernments into the evil paths of new
frlctions. 1t means the irresistible
pressure to exert intolerant national
strength It means the enforcement
CT this strength by the weight of gov.
ernment, which means armies and ma
vies, that is ahead of u.s.
Copyright, 1921. by the New York
Evening Post, IncD