Evening star., 1921-05-29
How Well Is U. S. Equipped
For Great Trade Warfare?

manufa cturer enjoys. FOR one .niHs'
he is not nearly so heavily taxed as
ia the American manufacturer. III Is
true that the German government
went through the motions OF leHyins
heavy taxes. but taxes which are not
collected are not burden on business.
And the economic experts OF tne al
lies have been unit in agreeing tnat
the collection of taxes from the Dig
German interests has been nothihG
hut farce While the German gov
ernment has pleaded poverty. Ger
man business has proSpered amaz-
ineIy since the armistice and the
neonle have found the money to take
up doubled and trebled capital is
sues. 49,.
German manufacturers are having
difficulties over raw materials. but
these difficulties are being solved
and probably will disappear entirely
when the reparations question Is
finally settled and the mark begins
to appreciate IN value. Mha.e'to 70
disadvantages there may be as 10
raw materials are more than onset
nv the close organization Of German
scientists and their devotion 10 tne
cause Of German industrial ana corn
mercial supremacy The marNelous
scientific organization that allilos. %
made Germany the military master
Of the world is marshaled today TO
make Germany commercially su-
preme-the main thing 1t aims az DC
ing to increase the productivity OF
German labor and to reduce the
cost of the processes OF proouctioH' H.
Back of the German scientists Is
every resource of German capital
and the German government Ger
CT
bors. 1t is as much matter OF
life and death to the nation that
they shall succeed in devlsins the
means for commercial supreHdey
as it was during the war that tney
should produce the weapons LOT
military victory. They disappolnt-
ed the latter hope only by tne mar mar
roWest of margins. lhey ldlteo
by this narrow margin only
cause America and the countries
associated with us in the war IN
ally woke up and organized tneir
own scientific talent and put II 10
the devising Of counter weapons.
1t was terribly impressive les
son and one. it would have seemed
which would not soon be forgot
ten. 1t has not been forgotten-
by England and France. They are
maintaining their war-built sclen-
tific organizations and giving them
every encouragement ana support
as they labor to make their coun-
tries better equipped Tor tne new
commercial warfare. America ap-
parently, has not rememoe!eo. lhe
scientific organization when was
hnilt IN in this country and Whlch
made the winning of the war pos
sible has largely gone TO pieces
and, so far as the government Is
concerned. receives no encourage
ment at all.
Yet IL America is to compete
successfully with Germany 1or
world trade, one of two things must
he done. Either American wages
must come down or German wages
come up until they more nearly meet.
or the productivity of American LABOR
must be increased to an extent
that will overcome the dlnerence
in wages.
In order to place the American n
manufacturer on a parity with MS
German competitor in the matter
of gold outlay for labor, both the
money wage and the standard OF
living of the American working
man would have to come down. AS
for reducing his standard OF nv
ing. that might as well be 1orgot.
ten. It couldn't be DONE even II ~
were desirable. without an econoii,.e
struggle that would cost iioi
than it was worth.
This leaves in the first alterna-
rive only the cost of living to con-
slider AS the cost of living oe-
creases in this country, unooupteu
" the money wage or LABOR wan
have to come down in proportioh.
Hut as tho exchange value OF the
mark increases and imports INTO
Germany approach normal vol
ume. the cost of living in Germany
naturally will decrease as well.
And if it is logical to expect lower
wages to follow lower living costs
in this country, 1t is equally
logical a. to Germany. So there
doesn't seem any promising pros
pect that the difference in the wage
levels will be wiped out.
~ -
This reduces Americas hope for
successful competition in the world
trade contest to the greater pro-
ductivity of labor. That is a bet
a year ago, for undoubtedly labor
in this country has increased it's
productivity. But-and we cannot
escape from this fact. however
much we might like to do so-it
isn't sufficiently productive today
to wipe out the difference in wage
scales between this country and
Germany.
And it will not be made sufficient
ly productive unless there is genu-
inc cooperation to that end be-
tween capital and labor. reinforced
by the organized and earnest
support of the best scientific and
engineering talent which this
country affords There 10 lacking
today both the cooperation be-
tween capital and labor and the
organized reinforcement of scien-
tific talent With the battle al
ready in its opening stages, Amer
lea continues peacefully asleep at
tho cuifoh