New Britain herald. [microfilm reel] (New Britain, Conn.) 1890-1976, 1921-05-06
U. S. TRADE SHOULD
HAVE PROTECTION
Firms Doing Business in China
Need II

Cleveland, o., May 6.-The arsu.
ment presented some fifteen years ago
in support of federal incorporation
for companies doing business entire
1y inside of the United States, also
apply today in support of federal in
corporation for companies doing bus
mess entirely outside of the United
States and between foreign counties
and the United States, j. B. Powell,
honorary member of the American
Chamber of Commerce told the Ma
tfonal Foreign Trade council today.
Since China is a great undevel-
oped country he said, and prob
ably our greatest potential trade
held, 1t is natural that the attention
of congress should be directed toward
Hesitation calculated to place .our
merchants in that field upon an equal
footing with our competitors. Other
nations which have preceded us in
China have already taken this action
years ago and have obtained strong
foothold there.
IF congress does not come to our
assistance and enact legislation to
place us on an even footing without
strong competitors, our trade out
there is almost certain to return to
its unimportant position of before
the war.
Our trade with China has not been
healthy for the reason that we buy
more from China than we sell to
China China is great market for
machinery and for practically all line
OF manufactured articles produced in
| America, but we can't sell enough out
there to even balance our purchases
| OF Chinese raw products. What fur
ther argument do we need for Iegis-
| lation that will enable our manu-
| facturers to go to China, and sell
| their products on an even basis with
the manufacturers Of other nations?
AT present If an American manu-
facturer desires to operate in China
| the only method open to him at the
present time would be to incorporate
| under one of the As states or under
| some territorial law. The point is,
| he is bound down to a state or ter
| ritorial charter and none of them
are adapted to foreign trade pur-
poses and when enacted were not in
| tended for that purpose. He would
1 probably end up by selecting some
state where the regulations are lax,
| or liberal to say the least, and as
| a result his company will have no
| prestige or standing because of abuses
| which have been perpetrated under
the state charter selected. In his
| business development abroad he
would be forced to compete with
British, French, japanese and Ger
man companies, companies with
known regulations, known especially
by bankers and companies that have
been surrounded by all the impor-
lance and prestige which these vari-
Gus foreign governments have been
able to bestow.
"All state interpretations are sub
ject to the national income and ex-
cess profits taxation measures of the
IA tional government. The first handi-
cap that this brings is naturally in
competing with British, French, jap
anese and German companies which
have been released by their home
governments from the operation of
home income and excess profits tax
alton. II you are paying heavy taxes
and your four big competitors across
the street do not pay any taxes at
all you are going to have a hard time
meeting the competition.
Chinese business men are friend =
Iy toward Americans. But their !
friendship naturally does not extend |
to the length that they desire to pay
taxes to the American government at |
Washington. British, Japanese,
trenCn ana herman business In
China was built up largely by firms |
of these various nationalities, through |
the use of local Chinese capital and |
native business skill. The British |
government in it's far sighted trade |
plans has felt that the big thing was |
the trade that would keep her big |
home industries running; not the |
small amount of revenue that might |
be obtained by taxing her foreign |
firms to death. America on the 9TH |
err hand believes it is more important |
to obtain a few thousand of dollars |
by drawing taxes from her companies |
away out in China, than it would be |
to give them certain advantages that |
would make up in hundreds OF ways |
in the resulting markets for our |
goods. It's a penny wise, pound fool |
ish policy.
THE China Trade Act as it passed
the house during the last session of
congress and as it still stands in the
present congress provides relief in
the two essential particulars.
I'm the larger field of world poll
tics, 1 believe there is more than
mere trade in this matter. I believe
1t is intimately associated with the
future general peace and prosperity i
of the Far East-yes, and the whole