The New York herald., 1922-02-22
ENGLISH TRADE HIT
BY STERLING'S RISE
Vauclain, Back From Europe,
Says Germans Are Under
selling World.

The manufacturing situation in Eng
land is bad and will grow worse as
sterling exchange, quoted in terms of
the dollar, increases in value. according
to Samuel NJ Vaucain, president of the
Baldwin Locomotive Works, who has
just returned from tour, which in
cluded almost every country of Europe.
In France some discretion is being ex-
ercised in not allowing the dollar value
of the French franc to advance too
rapidly. The principal reason for this
anomalous situation. Mr.. Vauclain ex-
planned, is the extreme keenness of
German competition. The value of the
German mark has declined to such an
extent that Germany can offer her
goods in the open markets at figures
that appear ridiculous. He said a
mechanic can be engaged in Germany
for 100 marks a day. or less than fifty
cents. Other countries, where it is
hard to obtain mechanics at even fifty
compete with manufactured goods pro-
Guced under these conditions.
From Havre to Paris Mr.. Vauclain
said, he found better conditions than
two years before. In Brussels he was
surprised by the reconstruction and the
Improvement of properties. Business in
Brussels is slack, but not so bad as
here, he said. A temporary holdup of
business has been oecasiened by the in
tensity of German competition. In
Germany he visited the Krupp plant,
where he found great activity. The
new locomotive shops there, he said, are
W tUo n o. an
months work ahead.
In Stockholm all workshops are busy
on Russian work. Russia has ordered
1000 locomotives in Sweden and every
effort is being made to speed ZIP deliv-
cries to one locomotive day In Nor"
way, he said, he received terrible re-
ports of the awful conditions existing in
the famine ridden portions Of Russia.
Mr.. Vauclain said a remarkable adj
vance has been shown in Poland in two
years. That country. he declared. had a
hard time between Germany and Rus
sia. but this position now is destined to
make Poland one of the wealthiest ana
most substantial States Of Europe. The
development OF Russia. he said. must be
conducted through Poland
Czecho- -Slovakia is In fairly good con-
dition. although not so good as Mr..
Vauclain expected. Austria's situation
he characterized as bad. duo largely to
the splitting up process through which
other states got the vast fhinterland
upon which Vienna depended so much in
it's commercial supremacy. Hungary, he
said. is better off, but feels the situation
Seenly.
France Mr.. Vauclain declared has
nothing TO worry about. That country
is able to compete with Germany to
some degree. In England the shops are
running at only about 20 par cent. of
capacity. with few orders. The future
of the United States for the next five
years. the locomotive builders said, de-
pends entirely upon the ability Of manu-
facturers here to extend credits. which.
if literally given, will result In America
getting her full share of the worlds
trade.
Mr.. vauclain said that he did not go
abroad for orders and that he was
able to restrain HIMSELF There is
plenty Of business available II sufficient
credit Is extend ed. he asserted. but the
Baldwin Locomotive Works does not
desire to extend credits to a point at
which it's capital may be affected. Al
ready credits have been extended to
Poland and Rumania. s7.000,000 In the
first instance, and further credits to
both are probable. Interest has been
paid promptly on the $7,0OO,OOO Polish
credit and no payment on the principal
Is due until next year.
AS for the United States Mr.. Vauclain
said Business Is not good here" The
remedy. he said. is economy, work and
thrift. "You can't maintain n payroll"
he declared ''if you have nothing to
maintain 1t with.
II think we will have good business
before long, not so profitable as two
years ago, but sufficiently profitable to
meet all requirements. Prices. wages
and the cost of living must go much
lower. If we are 20 continue to com
pete against the producers OF Europe
our dollar must buy more than it has
been buying"