The public ledger. [volume] (Maysville, Ky.) 1913-1968, 1922-01-07
and even bring heavy losses.

ana even DrlHg neaVy LOSSES.
| Our domestic trade will, of course,
continue to be Of much the larger inn
portance in our economic LIFE and
even II international economic affairs
should remain in highly unsettled
condition we would, undoubtedly,
make important substitutions and re-
adjustments within our own territory
that would contribute to the relief Of
our domestic business situation. Such
readjustments are in part already IN
der way. Indeed it is not at all clear
that the uncertainty as to the internal
tional situation is an unmixed evil In
forcing us to look more closely for
possible establishments at home, con-
sequent efficiency may, in the end,
bring us some lasting benefits.
ION the other hand we must not
overlook the fact that readjustments
leading to increased efficiency may
still leave in Important cases pro-
ductive capacity in excess of domestic
demands. Under these conditions i'll
dividual producers cannot be expected
to reduce their output simply because
there exists an excess in the aCgre-
gate, at least not until they have been
convinced that they may not capture a
larger proportion Of the home trade
than they have heretofore obtained
Those who are familiar with the his
tory OF the destructive competition
among railroads and industrial plants
that led to the formation Of the pools.
the trusts and other forms of combin-
atoms between 1870 and 1900 will not
have difficulty In visualizing what
would happen IL individual producers
should all start out to capture larger
share of q domestic trade that In the
aggregate is insufficient for them ali
1T is true that radical amendmen
of our antitrust acts might rendel
possible price-controlling agreement
that would lessen the destructive eff
fects Of competition. Such arrange
ments. however, would still leave the
problem Of surplus products party I'M
solved. Moreover. the problem Of
amending our present laws, with
view to maintaining wholesome de-
gree of competition and preventing
unreasonable price fixing without i'm
posing upo nbusiness men great I'M
certainty as to what could be legally
done, Is extraordinarily difficult. AS
practical matter, therefore, unless we
are to face the possibility Of an indus
trial competition of an intensity hith-
trio unknown - that indeed may dis
sipate part of our productive energy
we must recover in the feoreig nfiel3
sufficient trade to carry off the output
of our surplus productive capacity.
1T may apepar the easiest way il
our present dilemma to let interna-
tional matters take theii natural
course and to concentrate upon the
home market. 1t may be we'll doubt
ed, however, that the final cost Of such
a course in money and energy will be
less to the nation than course that
would call for our active cooperation
in the international economic and fin
ancial reconstruction that Is neces-
sary to a recovery fthe buying ca
pacity Of the rest of the world. In any
event the policies of hermit nations
do not lead into the path of progress.
Large industrial nations will continue
to have political and, in some cases,
even racial boundaries, but they can
no longer have economic boundaries.
Economic units and the forces that
control their actions are now world
wide. Moreover, the resumption of our
pre-war prosperity and the continu-
ance of our normal growth involve an
ever-increasing dependence upon in
ternational conditions. The whole
course Of our future economic devel-
opment therefore, lies clearly in the
direction Of large cooperation In in
International economic activities