The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1921-04-06
GOVERNMENT
IS FOSTERING
EXPORT TRADE
Conference of Bankers and
Cotton Men Called by Mey-
er and Hoover Plan New
Departures.
MAY Relieve SITUATION
BY MARK SULLIVAN

ference Of bankers and businessmen
from the cotton states, held here on
the initiative of Eugene Meyer, chair
man of the war finance corporation,
was the first public step in a group
Of actions which, as a whole, consti-
tute a clear policy on the part of the
administration toward business.
The policy is a striking departure
it goes to the extent of bringing about
for the purpose of foreign trade a high
degree of cooperation among business
,lnterests. The cooperation is to be
not merely the auspices Of the govern
ment, but actually under the leader
ship of government officials.
The principal proposal at Mr..
Meyers conference with the southern
bankers stated very roughly and brief
iy. was that they should assess them
selves a small sum, OF the basis of the
number Of bales raised in each state,
on the unsold cotton which they are
now carrying under considerable en-
barrassment that they should use the
money so raised to form cotton ex-
port association. that this export as
sociation should work with a foreign
trade bank recently formed in New
Orleans. and that by means of the
two institutions there should ship that
part of the cotton which is causing the
greatest embarrassment to the banks
to warehouses in London. Hamburg.
Marseille, Genoa. and other ports in
Europe.
- Eliminates Difficulties.
Once the cotton is actually in Eu
rope, many difficulties of marketing
enherent in the present state of ex
change will be eliminated and the
cotton will be to that extent, more
readily marketed.
Mr.. Meyer. as chairman of the war
finance corporation, stands ready to
sssciiitate this process with certain
amount of government help, the money
that the government advances being
contingent upon the advance of a
much larger sum by the banks con.
cerned.
To be read in conenction with this
action, as rejecting the new govern
. nent attitude, is the step taken by
!, Secretary Of Commerce Hooves in re-
viving to a degree that voluntary CO.
operation of industry which was prac
ticed by the war industries board dur
ing the war.
Mr.. Hoover has summoned to Wash
tngton several of the dollar a year
men who served in the war industries
board, to give either all or part of
their time to a revival of the system.
Allocate Markets.
The theory is that each line Of
shall be asked to agree to make GER
tain standardized models for specific
foreign markets. That they shall, to
some extent. allocate these foreign
markets among themselves. One
group taking South America, another
group China, an so on. And that they
shall achieve economy by agreeing to
eliminate the waste of competition
among themselves in the field of for
eign trade.
These are two potential steps in a
policy which involves an attitude
toward business such as has never
been practiced by the American gov
ernment, except during the war. 1t
Is an intimacy between business and
government which our people have AL
ways been disposed rather to frown
upon than to approve.
Other governments, however, have
long followed the practice Germany
followed it with her cartels, and Great
Britain follows it in the close intimacy
between the British Board of Trade
and the British foreign office
Britain In Advance.
Since the war Great Britain has
gone much further with this policy
and France and other countries have
taken it up for themselves
The fact that other countries fol
low this practice makes it more or
less inevitable for America to adopt it.
The effectiveness of the rivalry of A
country which practices this compact
ness and economy forces it on us.
If the country buying American pro
ducts does it's buying through what
amounts to common purchasing
agent, it is pretty necessary for
America to adopt the device of com
mon selling agency.
The policy is a step in the evolution
of the relation between government
and business, which foreshadows i'm
mensely vital results not only to
America and to other countries. but
actually to the whole theory of or
ganized society.
May Be Issue.
In America the policy will cause
for time, some incongrous results
It will seem strange to have the reg
ulatory departments of our govern
ment like the federal trade commits
sion and the courts. opposing combi
nations for eliminating competition a.
home and compelling dissolution o.
the combinations at the same time the
department of commerce will be invit
ing and fostering combination for tho
elimination of the wastes of competi
ton in the export field.
Undoubtedly, the policy of Hoover
and Meyer will meet approval from
business men. If we are to have for
eign trade at all. it must be done.
Probably for the present, the public
generally will approve the policy, al
though it is easily possible that il
time 1t may become a controverted is
sue in some fguture political cam
paign.