Omaha daily bee., 1921-08-11
Export Business
OF u. S. Said To
Be Threatened
Banker Predicts Increase in
Raw Material Trade, But
Fears Slump in Manu-
factured Goods.
By HOLLAND.

BY HOLLAND.
Rudolph S. Hecht, who is presi-
dent of one Of the large banking
institutions of New Orleans, is re-
ported to have said to his friends
Immediately after his return from
Great Britain and Europe that he
saw and heard enough to justify
him in saying that the principal Eu-
ropean nations have not been ex-
hausted, although they have been Sc
riously impaired in their industries
and their agriculture. They pos
sessed strength hitherto latent which
is now enabling them to recuperate.
Therefore Mr.. Hecht is persuaded
that these nations will continue to
make heavy demand for some Amer
ican raw materials. Cotton for in
stance, copper and of course food
stufis. .
Cotton is indispensable, if Ger
many, Belgium, Roumania and even
Great Britain are to regain their
former industrial prestige. But raw
cotton of the kind chiefly used in
the European manufacture of cotton
goods can be found nowhere else
than in the United States. Mr.. Hecht
is in full accord with other authori-
ties who regard it as inevitable that
within few months a heavy in
crease in the export of cotton to
Europe will be made.
U. q. Labor Costs.
he 9TH
feel especially encouraged about the main
tenance. certainly not about the increase
In our> exports OF manufactured products.
One reason why he is thus apprehensive
Is based upon the labor costs which are
proporttonately the larger part Of the
cost of manufacture in the United States.
In Germany where labor is the funda-
mental means by which the reparations
can be paid and German industry restored
labor receives on the average little under
VI day. whereas the American work
man averages at least IS day. That
brief statement in part explains why
1t is that Germany is successfully enter
Ing the worlds market and why Mr.. Hecht
is apprehensive lest our exports of manu-
features be greatly decreased.
Yet the exports of American manu-
featured articles formed considerable
part Of our share in the international
trade OF the year which ended on De-
cember 81. In fact there was an increase
In our exports of manufactured products.
Seven years ago American manufactured
articles constituted only about one-siXth
OF the manufactured products in the en-
tire international trade. But In 1920 our
own manufactured articles amounted TO
about one-third OF all the manufactures
entering into International trade.
Can America Hold Trade.
A question of the utmost importance Is
caused by the consideration suggested by
Mr. Hecht respecting our exports OF man
ufactures. The question is this: can we
Increase or even hold the large inter
national trade manufactured articles whlch
we are fortunate enough to secure. II Is
only within 20 years that American man
utactures have constituted any consider
able part Of our exports.
Nowhere does there appear TO oe any
understanding or apprehension en- the
part Of the labor organizations OF the
United States that very dangerous com
petitor has arisen. German labor at an
tually in competition with American labor
whose average is $6 day. The Germans
who work in the factories which are turn
ing out manufactured articles receive pay
which Is so small that 1t is possible 10
manufacture these commodities and mar
ket them elsewhere in the world at price
which other nations cannot meet.
Must BE Wage Stabilization.
No one expects or desires American la
Dor to be paid wages comparable with
those which the German workmen receive.
But II does seem as though labor should
understand that unless it offsets this Ger
man competition 1t is in serious danger;
There must be stabilization OF wages ana
there must be greater efficiency than even
the industrious German workman gives
We have already demonstrated that we
can pay the highest wages received oy
workmen anywhere in the world ana ye1
Increase our exports of manufactured prod
ucts from one-slxth to one-third OF the
total worlds exports of these products
This has been accomplished through the
utilization of the most highly perfected
machinery and apparatus and also through
a high degree Of efficiency which has
been given on the whole by American wage
earners In this way the cost OF produc-
tion is reduced to a minimum, more than
offsetting the difference between wages
paid to american workmen and the wages
paid 10 the workmen OF other lands.