East Oregonian : E.O. (Pendleton, OR) 1888-current, 1922-01-07

AMERICAS PROSPERITY AND FOREIGN TRADE


"A her foreign trade and it is impossible or the United
States to achieve its prosperity by revival of do
mesc business alone Dr. Henry b. Chandler economist OF
the National Bank of Commerce in New York says.
Dr. Chandler takes issue with those who believe that since
foreign trade represents than 10 to Is per cent of
Americas total commerce. the loss of part Of would leave
sufficient percentage of the whole to insure reasonable pros
per In the January number of the banks magazine Com
Monthly he points out that economic investigation proves
that even during periods of depression volume Of national bus
mess after allowing for price changes seldom departs from nor
NAL by than 15per cent and often by smaller percent
ages seemingly small reduction the percentage of
business may great significance when translated into terms
Of net profits and thus into final buying capacity.
In view of the decline in foreign buying capacity has been
suggested that have to reduce output to conform
much nearly to domestic demand and thus in the future
prevent the accumulation of upuse similar to those that have
recently demorazed of our principal markets he
tnues. Undoubtedly such reduction be effected in part
and indeed to extent has already been done but
practical movement upon large scale is beset with great diff
ficuties
IT, for example, lose only per cen. of our total national
business through the reduction in foreign trade does not
mean that each industry loses only per cent The relative
dustres In the proportion of foreign to total trade
significant while in others it is high one-hid nearly
onehaf 1t possible therefore, that reduction in foreign
trade amounting no than cent of total trade
effectively cripple of our basic industries to wipe
out all profits and even to bring heavy losses
Our domestic trade WILL of continue to be of much
the larger Importance in economic e and if inter-
national economic affairs shadd highly unsettled
condition would undoubtedly make important subsutions
and readjusments within territory that would contrib
ute to the relief of domestic business situation Such read
ustmens part already under way Indeed it is all
clear that the uncertainty to the international situation is
nmxed evil In forcing to look closely for possible
adjustments at home consequently efficiency may the end
bring us some lasting benefits
On the other hand not overlook the fact that
adjustments leading to increased efficiency still leave
important productive capacity excess domestic de-
mands Under these conditions individual producers cannot
expected to reduce their output simply because there exists
excess the aggregate at least not until they have been
vnced that they not capture larger proportion of the
home trade than they have heretofore obtained Those who
familiar with the history of the destructive competition among
railroads and industrial plants that led to the formation of
pools the trusts and other forms of combinations between 1870
and 1900 will not have difficulty in vsuazng what woulC
happen individual producers should all start capture
larger share of domestic trade that in the aggregate insult
fcent for them all.
at true that radical amendment of our antitrust act
might render possible controlling agreements that wou
lesson the destructive effects of competition Such arrange
ments however would still leave the problem of surplus pro
ducts partly unsoNed Moreover, the problem of amendn
our present laws with view to maintaining wholesome de
gree of competition and preventing unreasonable price fxn
without imposing upon business men great uncertainty as
what could be legally done is extraordinarily difficult AS
practical matter therefore, unless to face the possbt
of an industrial competition of intensity hitherto unknown
that indeed may dsspae part of productive energy-w
must recover in the foreign field sufficient carry off
output of our surplus productive capacity.
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The agricultural bloc in congress is being condemned
though were criminal for group of national lawmake
stand up Tor the famer what about the Wall street bio
the tariff bloc the packer bloc and the Newberry bloc?
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If there's anything with any of our officials let
light be turned without fear favor but what we want
sunlight, it's hard to tell true colors by moonlight.
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As far Old Man Winter concerned he need not bur
but it is time for him to locate his hat,