davidaulloa/AmericanStories huggingface dataset:
New-York tribune., 1922-03-05
Warns of Export Entanglements
commerce Bureau Head Says Many Agencies Tie Up
u 5. Firms by Agreement and Then
Push Foreign Goods

we'll authenticated confidential ad-
yves received by the Department o"
commerce from various sources ind;-
'1'e the recurrence in a yirulent form
o. an old evil, which has from time to
'lf'e inperlled individual! interests r.
'ae export trade, but now seems to b,
ens..;d aseted against certain exporting in
xsaes xIs;a as {. whole, according to Julius
a., n.leii, director OF the Bureau of For
''Sn =, ana Domestic Commerce.
a.. "s means employed arc to tie up
sne american exporter in an agency
~eaeement and 10 push competing
s. ."uuS OF foreign make under the pro-
mont '-''s Ssency arrange
ElaiIn ms practice is not new" saws Mr.
b' her - put apparently it has never
scco,s n sfled SO extensively IS at present,
;e'ig son - 70 sAdications, for which wca-
worS ~ ~ 80 IS deemed cxpedient TO issue q
II I1 ~ y. caution to American exporters.
49,. 'S absolutely essential. for the pres
of "a. p prosperity ard the futaro welfare
Sie american export trade. to exer-
da.s;,e .ss Ine Most rigid scrutiny over the
Nm 'aiis al Vi agency agreements which tic
aIA "e Exporter IN certain territory.
c,ot - sour agent bound by open or Sc
A.. a'hilations TO interests other than
,aneI'can. Tsap. Does the agency agree
NH msn. permit him to psraiyzc the active
yrehotion W. OF your interests and to de-
,oss o himself actively TO the sale Of
Iinuu9eting goods? The danger out
tnoI,. ,1a Is not & mere hugaboo, but ac-
hay exists and fagrant cases have
cO csn submitted to the Department of
Ns"anaesce "ras as evidence.
nsese problem which the situation
d;S.s, dSssn,s Is exceedingly delicate and
aeu't' The solution--to entrust the
sss;ney OF an American firm to q
$50 Is american agency Organization
whsapie enough, but can not be every
ore applied IN practice because such
RI, :. s'lons are comparatively few.
clos.iie ~ Is imperative to examine most
syemay tne existing and the proposed
ais,;s.sy: arrangements with firms whose
~. ions arc not entirely American.
Amsr,s mas neen suggested that where an
t;ra t;''.can iirm can not be found, a ma
fors; urn, free from any suspicion of
w;., affiiiations, should be entrusted
dis,, ele agency, but even this expe-
rass,ay Is may not always answer. In many
yoads ssss the distribution of imported
aTs mas never been in native hands.
tast eao fact remains that the
abra.S " oistributing American goods
y ny American traders had large
ne.. pehoed before the war upon Euro
nols agencies and other foreign chan
thsS Even until very recent days
botssonad nad depended upon foreign owned
yims yio,,s 20 carry them. 1t is the OBJ
bnsiss ana immediate task of American
Eor,a E,ess to create throughout the
or ~ a network of American agencies,
"a. least agencies whose loyalty is
p'e-emptcd BY racial OF CONNER
New-York tribune., 1922-03-05

eouhtered III putting the plan into ef
zee. 1, mas not been abandoned. The
lace mat 1t received good heari,c
from the various departments of ,bc
industry indicates growing spirit Of
co-ope ration. few years ago no ono
would nave broached such nlan
hnoWlng that 1t would be impossible
TO get all these divisions of the shoe
trade together on a single point.
Farmer q Factor
Such unrelated industries as farming
and dry goods and department store
retslilng appear to be coming closer
together than ever befone.' The farm
crs untavoraolc economic position has
reacted upon the retailer. Therefore
al the recent convention of the Ma
tional Retail Dry Goods Associations
Secretary of Agriculture Wallacc and
President Howard of the Farm Bureau
Federation. were among the principsl
speakers. The idea OF farmer stand
ing up in the midst Of a crowd of re-
tailers and telling them what farmers
thought Of retailers in general did not
seem as 'ncongruouS a month ago as
1t would have appeared FIVE or six years
ago.
One retailer from Michigan related
u
that might we'll be adopted elsewhere
In many communities in the Wolverine
state. he said, the chambers OF COM
merce invited the farmers. through
their grange organizations, to come
int otown and take dinner with the
town merchants. At these dinners
common problems, business conditions
in general and specific topics were dis
cussed. The farmers later invited the
retailers to dine with them in their
grange meeting halls. The interchange
farm, according to this Michiban re-
taller, has been exceptionally helpful
to both.
Al most Of the trade association con.
ventions during the last winter, speak
ers have been recruited largely from
outside the ranks of the specific branch
OF industry covered by the association.
At the meeting of the National Whole
sale Dry Goods Association producers
of textiles occupied a prominent place
on the program.
AT q coming meeting of dress manu-
facturers. such prominent retailers as
Samuel W. Reyburn of Lord & Taylor.
and Phillip lie Boutelicr OF Best &
Co. arc to tell their side of the story
TO the. producers Of merchandise.
In many other branches of trade this
get-together spirit is coming to the
fore. Trade associations have extend
ed their activities to include all sorts
OF cooperative action. Just how far
they can 60 without running afoul of
the antitrust laws is a question. The
situation has been clarified to some ex-
tent by r recent exchange Of CORE
spondence between the Secretary Of
Commerce and the Attorney General.
In the main the Secretary of Commerce
appears TO approve and encourage most
of the activities of trade associations
along the line Of cooperative work in
bringing about better business stand
ards, more even production and less
waste in industry. The fact that such
activities have increased to point
where legal complications have result
ed is merely an indication of the neces-
sity that business men find in getting
closer together with their fellow
craftsmen for the common good Of all.
New-York tribune., 1922-03-05
Hard Times Are Forcing
Industrial Cooperation
Under Stress Of Defiation Isolation Is Giving Wa,
to Realization of Mutual Inter-
dependence

IST hudde together storm and take coso,+ -
numbers industries being closer oyet.r m ~
trials and vcissitudcs of the dehaion rehabilitation nsr;
interesting that this spirit of getting together
much haekneyd wrd) did not develop until course Of eA
almost spent itself In other storm was at t [
business was at It's worst there cnny between
Germs the industry between themselves and
branches of general industry this spr;t s
led to proiteerins of h,; ~
New-York tribune., 1922-03-05
Western Union Earnings

Net operating income in December
of the Western Union Telegraph Com
pany amounted TO sl,a30,76o, an in
crease of $500, ,406 over December, 1920
Operating revenue totaled $S,744 ,235,
a decrease of $e75,407. For the twelve
months ended December 81 net operat-
ing income was $l4,110,25l, decline
of S2,S76,016 from last year. Operat-
ing revenue amounted to $104 lot, lib,
decrease Of S5,Sn6,712.
New-York tribune., 1922-03-05
Changes Made in Method
Of Fixing Gain in Sales
But in General the 1921 Income Tax Law Deter
mines Profit or Loss ON Basis of
Properfy's Cost
By Morris F. Frey

Assistant Treasurer Guaranty Conpoey Of York
ME- law and regulations
method of Sscertanng loss from the of
Some of these changes with reference property
acquired March J. 193
United States Supreme Court the
general for the determining
exchange Of property the basis IL Of
Of property which should be included
New-York tribune., 1922-03-05
SIucr Eliminated


The same process of evolution which
had eliminated other metals and forms
of money has brought about the nearly
complete elimination of silver as
standard money. In the first place, sill
than gold, and for this reason, { no
other, it is less valuable, and there
fore more bulky and less convenient
as medium of settlements.
AS people have grown in wealth they
nave preferred to use a money which
provided greater value in proportion to
bulk, moving up from copper to silver
and from silver to gold.
Moreover, it proved to be imprac-
ticable to use two metals as standards
at the same time. The futiIity OF The
coinage stamp for giving value was
shown by the fact that the United
States placed the dollar stamp alike on
22.23 grains of fine gold and 31lM
grains of fine silver, and yet the two
dollars never circulated concurrcntly
until the standard was definitely fixed
in gold and the silver dollar was made
q token coin.
AS means Of communication and
transportation improved and iuterna
tional relations became more intimate,
the fluctuations between gold and sill
vcr became matter of greater con
Germ. Every uncertainty in trade re-
lations which inviives a possibility of
loss must be covered by charges, and
such charges became q costly obstacle
to trade and vnancial dealings, and this
rad the effect Of causing the nations
one by one to drop silver as a standa rd
and adhere to gold alone.
Before the great war China was the
only country Of considerable impor-
tance whic hhad not adopted the gold
standard.
The advantages Of this relationship,
in simplicity and economy. were very
great. The price quotations OF all
countries bore definite relations to each
other. The grain dealers Of every
country could readily calculate in
terms of their own money what wheat
was bringing in every other country.
Contracts for future delivery could be
safely made in other countries. The
common gold standard practically
eliminated the risk of exchange huctu-
atoms.
New-York tribune., 1922-03-05
Gold Has Stood the Test
of the Ages Both as a
Medium Of Exchange and
a Standard Of Value
Makes for Stable Trade
International Com cree
Can Flourish Only by
Using Common Language

ment of such a system may be i'm
agined, and yet the problem is funda-
mentally an international one.
Prof. Fishers Plan
Professor Irving Fisher has dcvel-
oped a plan b. whicl the multiple
standard would be used, but currency
redemption would be in gold, adjust
ing the amount Of gold to the tend
ency OF the commodities TO fuctuate.
BY this plan the international settle
ments still would be made by shipping
gold The plan, however, remains so
artificial and complicated that there
can be no reasonable hope Of an inter
national concert upon it within calcui-
able time. and The advantages Of a
common standard Of value are or far
more Importance than any advantages
that arc promised from the multiple
standard over the gold standard. After
the world gets back to the common gold
standard it will be time enough to dis-
cuss the multiple standard and othder
proposed refinements OF the SUBJECT.
Economists do not say that something
may not be worked out Of the idea, but
to try to interest the world in it now
would be like treating q man for some
minor almcnt when he had been man
gled in q railway accident.
We are aware that We have passed
over one objection sometimes made to
the gold standard, TO wit: that the
supply Of gold is "controllcd" either
in the mines or in the possession OF
bankers, and manipulated to make
good times and bad times and iileglti
mate profits for bankers. This idea 8
a pure delusion. not only without ev
dencc in its support, but impractical
bile. Everybody who has gold mine
desires to get the gold out Of it as
soon IS he can at a profit. and every
body who knows naything about the
banking business knows that ban
make no money upon gold in their
vaults, except as it is required in tae
conduct Of their business.
As matter of fact, the holdin.g .
gold outside of the central banks,
Guiding the reserve banks Of the
United States is very small The esti-
mated stock of gold in the United
States is about $500 000. 600, of which
all the national banks at the date OF
their last statement held about $40
100000. Private bankers held much
less, an insignificant amount, rs they
usually carry their reserves in othe,
he o.,l 81 ,,,ta
New-York tribune., 1922-03-05
Public Holdings

The reserve bank holdings, last cs-
tmatcd at s2,936, 900. are public
holdings. in sight all the time, and
subject to use on the same terms by
everybody. The gold stocks Of other
countries are concentrated in the cen
trail banks, as here. always in sight,
subject to governmental supervision in
most countries, as here, with govern
ment officials participating in the man
agcment.
Moreover, paper money issues by the
government would not affect this myth
ical control which some people suppose
bankers TO have over the money mar
ket. Issues of paper money do not
make money and easier to get. 1t is
more plentiful in one sense. as seen in
Germany ard Russia, but the more
there is issued the less it is worth and
the more a person must have to buy
anything. Furthermore, people give
their government money into the Gus
tody Of the banks just as they do other
money, and the banks would have as
much "control' over it, or power to
withohold it from use, as they have
now. And if all banks were abolished
and people buried their money in the
ground, the man who wantc dto bor-
row would find it even more difficult
to DO SO than now.
(7he foregoing article uas qorittcn as
q. reply to agitation for soft" money.
cnd pdrticuiay'V la response TO specific
proposals By Henry Ford. II acos de-
signed TO constitute q supplement 10 the
current nso9,thly letter of the National
City Bank.-ItnnnciGl Editor.j
New-York tribune., 1922-03-05

that the balance Of trade would rise
against it and its importers would be
Obliged to remit gold in settlement.
Inc loss Of gold from bank reserves
and the loss Of export business would
combine to check the rise of prices ar
brlng them back 20 the worlds lev. "
thus restoring the equilibrium of
prices and of trade
In short. the influence Of the con,
mon standard of value was toward
making the world ono community in
hnanSe, IN industry and in trade. 1t
was harmonious with the influence of
improved methods of communication
ana transportation, a common anpuapc
emo common weights and measures
IT Is impossibe to have this inter
national relationship of values without
a common standard.
1t must be borne in mind that
changes i'll the volume of paper cur
rency, unless they closely correspond
with changes in the current volume If
business. will affect tho value of that
currency and conversely, changes in
the volume Of business, the volume Of
currency rema.ninS the same. will af
feet thc value of the currency. Il ia
out OF the question for the currencier
or d1fieront countries to remain in
hHed relations to each other except bv
means of their relations to common
standard of value and by facilities for
an an equal'zing flow Of money between
the countries
New-York tribune., 1922-03-05
Suggests Cooperation


The suggestion that all these branches
Of the mems clothing trade get together
was made By Andreas Burkhardt, a re-
tail clothier of Cincinnati and former
president OF the National Retail Clio
tiers Association. at the annual meet
ing Of the American WOODEN and Wors-
s.ed Association last year. The mi
tisl conference Vas slow in develop
ing, but definite results were obtained
in the appointment Of permanent
committee to take up the common prob
lens Of the whole industry.
Another development along the same
line has come about in the necktic ir-
dustry. temporary committc com
posed Of three representatives oN the
tie silk industry and three cs the tie
manufacturing industry called d gen
eral meeting at which fifteen repre-
sentatives of both branches of the gen
eral tie industry were present. and will
call similar meetings for the next
siS weeks. 6o-ope rative advertising is
being considered by these two branches S
as measure of 40 for both.
Nebulus plans for cooperative adj
yertlsing as a method of stimulating
consumpton OF some particular article
or class of articles is being considered
IN number of industries at present.
Such plans usually take in all the
branches of an industry. An ambitious
plan Of this sort was submitted early
this year at the annual convention Of
TIE National Boot and Shoe Manufact-
urers' Association. In its rough form
the proposal called for a widespread
newspaper and magazine campaign to
awaken shoe consciousness" to make
dress-up appeal along shoe lines and
70 preach the gospel of the right shoe
lor the right occasion. The financing
o. o. the campaign Was to have been
perne Jointly by the leather tanners
snoe manufacturers, shoe wholesalers
snd retailers. upon the argument that
the advertising wuld stimulate the con
sumption OF T ootwear and so benefit
I'll THESE sections of the industry.
Although some delays have been en-
New-York tribune., 1922-03-05
Investment Property

Under the law and regulations the
same exceptions apply to the exchance
of property held for investment TO-
property of a readilT realizable market
value and money. as 10 the exchange
of such property for other property o.
readily reali1able market value as
noted above. In such case, notwith-
standing the fact that the property 70
ceived may have been a readily reaiz-
able market value, the cash exceeded
the cost no profit would be reported
until the property received was sold
For example, apparently under the
regulations. IL A, who is not deal
cr. exchanges $4,000 par value B. {
o. As, which cost $1,000 for $4,000 o.
Northern Pacific IS and $1,000. no
profit would be recognized until the
Northcrn Pacific bonds were sold.
The same principle applies in the
case of an exchange of stock for secur-
ties and cash in the reorganization Of
corporation or in the case of the
transfer of property to q corporation
in exchange for cash and stock repre-
senting controlling interest in the
corporation.
This is the eighth Of series of in
tcrpretative articles on the ncic tar nm,
written for The Tribune by M FRY.
Others piu appear on subsequent Sun
ddys.-Findnc1al Editor.
New-York tribune., 1922-03-05

IN the case Of property acquired be-
fore March !, 1913, when its fair mar
ket value as Of that date was In ex-
cess Of its cost, the gain to be in
clueed IN gross income is the excess
Of the amount realized therefor over
such fair market value In the case
Of property acquired before March l.
1918, il its fair market value as Of
that date Was lower than it's cost. the
deductible loss is the excess Of such
fair market value over the amount
realized therefor. No gain Or loss is
recognized in the case OF property
sold or exchanged at more than cost,
but at less than its fair market value
a 8 Of March j, 1918, or at less than
cost but at more than its fair value
as Of March j, 1915. In the sale Of
depreciab,e property proper adjust
ment must be made for any deprecia.
ton or depletion sustained and allow
able as deduction In computing net
income.
If the taxpayer cannot determine the
cost OF securities purchased prior TO
March /. 1918, because of loss, destruc-
tion or failure to keep records, the new
regulations provide that the value OF
the securities at the date or approx
mate date Of acquisition may be used in
determining the cost basis. When the
date or approximate date Of acquisi-
ton is unknown, no general rule is
given for determining the cost value of
such securities, but each case will be
considered upon the facts
New-York tribune., 1922-03-05

of the business world, giving legal rec
ognition and authority to methods long
In uSc
New-York tribune., 1922-03-05

without being subject to tax on any
appreciation in the value Of securities
disposed Of. Under the new provision
an investor may exchange property
held for investment for property of a
like kind and no gain or loss viii be
recognized in the exchange. The words
like kind as defined in the rcgula
tions, have reference to the nature or
character Of the property and not TO
its grade or quality. Under these pro
visions no GAIN or loss is realized b.
one other than dealer from the eA-
change of real estate for other rea
estate, or from the exchange of eVi
dences or indebtedness. such as bond
and notes fer other evidences Of IN
debtcdness, or from the exchange of
shares Of stock for other shares OF
stock. On the other hand. an exchange
Of bonds for stock or real estate for
bonds would not be an exchange o.
property of like kind Where no gain
or loss is recognized in such exchange
the property received takes the place
cost Of the original property is used
IN determining gain or loss when the
property received is sold
Special provision is made also for
the determination of gain or loss ir
the case of exchanges of property and
money. There property is exchange
for other property which has no
readily realizable market value. to
gether with monev or other propert--
which has readily reaiizable msrket
value, then the money or the fair mar
ket value OF the property having such
readily realizablc market value re
, ceived in exchange shall be applied
against and reduce the cost Cor the
fair market value on March /, 1913, .,
the case may be- of the property and
if in excess of such cost or fair mar
ket value, shall be taxable to the cx-
tent or the excess
For example: A exchanged stock
purchased in 1919 for $4,000 for land
having no readily realizable market
value and $4,000 in cash. In this ox-
change 10 gain or loss was realized
/ II the land, however. was subsequently
sold for $4,000, profit of 81 900 would
be realized in the year in which sold
New-York tribune., 1922-03-05

TeSS Oh dShasiVit H4'N ASe'u piii I'd kicii
These snimosities are disappearing,
.,s now the business observer who
1ooks about him finds new spirit.
commonly called cooperation, for
want Of a better term. gradually assert
ing itself.
Within the last week two exempli-
fcations OF this spirit have come to
light. One was conference attended
by mems retail closhiers, manufactur-
mo clothiers and wooden and worsted
nroducsrs and selling agents. The big
nusstion tha. is confronting all these
branches of the same industry is how
ssn business be stimulated? Frictions
DO exist between sections of the in
dustry. Heretofore these differences
have ben discussed mainly am ong the
individual branches and the executive
sessions OF associs tions. 1t is reason
able to suppose that much of this dis
eussion was OF destructive rather
than constructive variety. 1t is
gradually dswniug upon business men.
however. that no matter where they
stand in the long line Of processes
from raw material TO consumer, that a
tie-up anywhere on the line reacts
backward and forward and affects
every little post along the route. 1t
was natural, then, that continued
tie-up, or recurrence OF tie-ups.
should lead 10 a getting together to
see IL some of the obstacles to a more
speedy and even tenor of business
could not be obtained by joint effort.