Evening star., 1921-08-07

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ganization. Thus industry and trad
politicians are now reluctant to let
go the many advantages such a sys-
TEN gives them.
l say this applies particularly to
France, because in England decon-
troll is proceeding rapidly. while in
Germany Capitalization during the
war was far less political than else
where. due to Germany's highly de-
velcped economic Capitalization. In
France industrial recovery is being
seriously retarded by the survival OF
wartime control. This gives an op-
portunity to multiply indirect taxa
tion, thus relieving the politicians OF
the disagrea BILE duty Of levying direct
taxes. The result Of this method as
applied to fuel (coal and OLD is to
raise manufacturing costs far above
those prevalent in Germany, thus
choking French industry.
Each Watching Other Fellow.
A second observation, which applies
to all countries just now. Is that
everybody is busy watching the other
fellow, fearful lest he gain an ad-
vantage. instead of attending to their
own business and doing their own
share toward restoring normal condi-
tions. This tendency manifests it.
self especially in high tariffs. Don't
misunderstood me. l am heartily In
favor of anti-dumping measures. i
also favor protection where 1t Is real
ly protection against unfair or purely
destructive competition. and not pro-
lection of inefficiency. But anti
dumping and genuine protection will
account for very few Of the high
tariff walls constructed since the war.
They are the product Of fright. "~he
producer or manufacturer, instead OF
setting to work to improve his efti-
cheney and beat his foreign conpeti-
tor on merits, confesses in advance he
is beaten. He goes to his parliament
and cries, Il can't compete. The for
eigner can produce better and cheaper
goods than I. You must protect me-
The purpose is 20 drive the for
eigner from the market. OF course. il
the foreigner also is overcome by
fright he retaliates. Mathematically
it is obvious that if both succeed in
their purpose. international trade Is
arrested. Thus at time when the
world is clamoring for trade resump-
ton. political energies are bent upon
it's destruction. But such efforts dc
nation like Germany which has prac-
tically no raw materials and there
fore can only subsist by importing
raw stuffs, giving manufactures In
exchange. If the tariff wall against
German goods is successful. Ger
many will die. But Germany refuses
to die and with almost uncanny in
ventiveness, born of stern necessity
resolves to climb that wall by in.
creasing efficiency beyond what here
tofore was believed possible.
German Goods Most Feared.
Thus in Germany's case. and Ger
man goods are the ones most feared
by competitors, the net result of 8
tariff barrier is to increase Germany
efficiency. At the same time. efficiency
lis lowered in protected countries ano
prices are raised. In short the for
eigner is the only one who gets any
advantages.
Add to this the fact that the
Germans, under the treaty of Yer
sailles, are compelled to disaSm
This means that all of Germany's
man-power is in the workshop pro.
ducing, not in the barracks consum.
ing. On account of abolition of mil.
ttary service Germany has today q
larger industrial man-power thar
before the war, and is able to utilize
the great machinery built for wal