Evening star., 1927-10-30
EUROPEAN CARTELS MAY FORCE
US. TO FIGHT FOR EXPORT TRADE
Battle i'm South America and Asia Seen Between For.
eign Trusts and American Independent
Competitors.

clining American commodity price
level.
1t is confidently believed here that
our industry can amply and abun
dainty take care Of itself on the world
field in any fair fight with Euro
pean industry. We are not organ
lied. however, for any fight which
includes large-scale, below-cost dump
ing" in foreign markets, with recoup
ing of losses through concerted rails.
ing Of the price level at home.
In these circumstances, which SO
profoundly affect the prosperity and
the peace Of both hemispheres, 1t is
thought that two developments with.
in the United States may arise.
In the first place. it is thought that
our producers may begin to avail
themselves more largely of the Webb.
Pomerene law, which permits them to
unite into cooperative corporations or
associations for the promotion of
trade abroad. We have now only some
90 such corporations Or associations of
the Webb'Pomerene type. There
might well be hundreds of them If
American producers should once make
up their minds to meet European
combination by American combination
IN q struggle for world trade
dominance.
1t is reflected, however, that nothing
could portend greater disaster to in.
ternational good will and to the pres.
ervation of international peace than
combats between trusts" represent.
ing American pride and prestige and
trusts representing the pride and
prestige of Europe on nationalistic
ana quasi'governmental lines.
When people trade as individuals
the hatreds aroused are only personal.
When they trade as nations the
natreds aroused are public. The
thought that the international trade.
world may drift in the latter direction
seems here to many governmental oh.
servers to constitute at bottom the
worlds most alarming and battling
problem.
Loan Check Possible.
The second development anticipated
mere out of the present situation is
that the State Department eventuallv
may feel obliged to withhold approya]
from American loans to European
producers or governments engaged in
concerted efforts against American ex.
port trade, ii and when those efforts
are characterized by methods which
under our Sherman law and our Clay
ton law we Americans almost uniyer
sally regard as unfair"
The State Department, by and with
the advice and consent of the Com
merce Department and of the
treasury Department, already has re
FUSED to grant its approval to loans
from American bankers to Europear
carteis-such as the one in potash
which have been thought to operate
inJuriously to us In our own market
in the United States.
The State Department would be go
ing only one short step farther if II
| refused to grant its approval to loans
| from American bankers to European
| caftels which were thought to bt
operating unfairly and injuriously tt
| the United States in foreign neutral
! markets.
1t Is certain that the department,
would not hesitate to take that ster
II necessary for the proper protection
| or American interests.
Ihe state Department continues tt
! maintain that somewhere and some
now In the American Government,
there must be the opportunity to pro
tect those interests by preliminary
| scrutiny of loans to foreign interests
Politically speaking, the emergence o.
| the new European internationa
cartels makes it highly improbable
| that the present supervision ovel
American loans abroad will be either
voluntarily abandoned by the Secre
tary Of State or legislatively termi
mated by Congress.
More private combining for the ex
port Of American goods and more
| nIlhIiD alfnarNiGinr nf fhn nnyf n
American dollars-those would seen
to be the approaching American
| answers to the new cartel challenge
uaf .T.lsrouA