New-York tribune., 1921-01-23
Loss of Markets for Low Grade
Cotton Goods Depressing Factor

banking institutions in their dealings
overseas. 1t is also the slogan of most
of our exporters and would-be export
crs. In general, American business
will not take even legitimate busi-
ness risk abroad, although experience
has shown the foreign hazard to be at
least as safe as the domestic one.
There is, too, the rather amazing con-
dtion that whilc we have many for
eign baking concerns, three at least
powerfully large ones, no one seems
to have devised plan that has yet re-
suited in their going into Europe in
a big way. There can be no two opin-
ions on the subject. Unless this is
will be on its beam ends. The world,
and especially European manufacturing
countries, will buy manufactures from
US only under the compulson Of sheer
necessity. But when all is said the
only foundation on which RECONSTRUCT
tion can be built is raw materials. The
most important Of these is cotton, and
that is here in America, costing us
money to carry it until some group
somewhere arranges to finance the
feeding Of it into idle machinery over
seas.
The plans of our New England mills
to secure their seasonal requirement
of Sea Island cotton would seem to
suggest way out Of the difficulty if
it were, modified and extended to cover
the unusual state of affairs in the
Europe Of to-day. Surely the big and
lesser financial groups recently
brought into being to handle foreign
business can work out practical and
reasonably safe scheme.
1t may as we'll be understood at the
beginning that any arrangement which
insists on having dollar safely under
control for every dollars worth of mer-
chandise sold, before we let go of it, is
doomed to failure. British, Dutch,
French and German pre-war trade was
built up by the men who would venture
rather more abroad than they would at
home, the size of the prospective profit
balancing the risk This, know, reads
ike a platitude, nevertheless it is one
our people must understand and be
willing to work on.
In the full measure of discussion
overrunning the land on the question
of financing exports, credit is being
stressed too much. AS if it were all
that is needed! 1t is rather, as John
provision Of adequate financial ma
carry the customer abroad"
This is the raw cotton case in nut
shell, with the proviso that the cot
ton be available at a price which will
enable the manufacturer abroad to turn
out goods at figure that will command
export sales.
Plans IF many kinds have been put
forward to enable the cotton manu-
facturers of Europe to set their spin
dies turning and looms weaving full
swing again. They come from every
country hampered by Il shortage, of raw
material. AS Germany has given birth
the Central European situation, it will
suffice to glance at the more feasible
Of them.
One, described rs strictly economic
and business venture, is to utilize the
efficient German labor, which can be
had for SO marks, or, 1T prevailing
rates of exchange, rs cents day, who
will, SO the German proponents of the
plan assert, produce more than an
American worker ut $3.50 a day. Cloth
and knit goods made On this basis from
American cotton are to be shipped to
this country to undersell the Ameri
can-madc goods All mention of tariff
revision upward is conveniently left
out Of this scheme.
American interests have been ap-
preached, it is said, to advance capital
so that the mills may resume full op-
Grafton. The example of American cop
per interests in taking an ownership
interest, paid for, partly at least, in
copper, in the German General Elec-
trio Company, is pointed at as a good
example for the textile group to follow,
it being emphasized that as Germany
uses considerable quantities of East
Indian cotton and imported cotton
waste, there is an excellent opportunity
TO substitute the unstable low gre des
accommodating in the South.
What with the Reichsbank demand
ing a forced loan and German manu-
facturers straining to extend long term
credits to the foreign buyers Of their
products, it would appear that careful
consideration of all the circumstances
abroad will disclose some acceptable
way out of part, at least, of the cot
ton growers dilemma. AS supply and
demand are the two main fundamentals Is
in commerce. it would be advantageous
for the producer having the supply
harvested to bend his energies to the
developing of demand