Evening star., 1923-12-30
BY WILL p. KENNEDY.


policy Of the United States.
insistently Haunted to the
world during and since the
days of John Hay, is now being
violated by the United States gov
ernment itself in handicaps placed
upon our nationals doing business in
China, which give foreign rivals in
commerce an advantage at the time
when building up of trade in China
is Of vital Importance.
This is emphasized by Representa-
tive L. c. Dyer of Missouri. who re-
Gently returned from a trip to China
TO study conditions first hand, and
who has in consequence introduced
a joint resolution to liberalize the
China trade act so as to afford
equality of opportunity to Amer
ican interests In China.
This legislation has the heartiest
support of Secretary Hoover, DR..
julius Klein, director of the bureau
Of foreign and domestic commerce;
Frank r. Eldridge. director Of the
far eastern division; Frank Rhea.
registrar, and in direct charge of ad-
ministration Of the China trade act.
with headquarters In Peking, China,
and Of the American Chamber of
Commerce of China.
Importance Of Trade.
The Importance to this country Of
building up trade in China is ex
planned by Department of Commerce
officials. Before the European war
there were only three or four i'm
portant American firms located in
China and this country's share of
China's foreign trade amounted to
but per cent. Today, II is approx
mately 20 per cent. In 1920, we did
$43S. 100000 worth Of business with
China: in 1921 this fell to $3.50, 900, 900;
In 1922 it was $275, 100000, and for
the first nine months of 1923 it was
$3.50, 900. 900.
The United States has been doing
business with China since 1884, but
all through the years we have been
buying just about twice as much
from China as we sell to China. 1t
rs at once obvious to all good bust
ness men that the sales Of United
States exports to China must be
built up to a more even balance with
what we import.
"China, in her present state OF
awakening economic development
constitutes q market for practically
everything produced in Americasand
her demands are multiplying rapid
ly," says DR.. Klein.
But commerce experts and Repre-
sentative Dyer, in his personal In
vestigation. find Americans endeav-
oring to do business in China seri-
ously handicapped because we dc
business there under treaties, which
give the same rights as though we
were doing business in the District
Of Columbia, subject to our own laws
and with adjudications in our own
courts-we do not have to reincor-
porate in China. One result is that
all of our companies and individuals
doing business in China have fed
eral taxation applied Just the same
as though they were in business in
the National Capital. while their for
eign competitors in the China mar
ket are relieved of such taxes and
so can afford to sell cheaper
Turn to British Firms.
AS a result Of this a number OF
American concerns have been driven
to the very dangerous expedient OF
putting their agencies in the hands
Of British firms instead of American
firms, where naturally, American
products will be given second con-
sideration. There is also another
danger that Department of Com
merce off1cia1s are deeply concerned
about. II the United States does not
take its full share Of business in
China some other foreign country
will get it and the balance of trade
will be still further distorted.
China's trade is expanding steadily
in spite OF the internal disorders
On silver basis there is a gradual
increase year by year in the total OF
China's commerce, and the United
States must take its share of this
increase.