Evening star., 1927-10-16
PARIS SHOW FINDS
!. S. CARS ARE BEST
Backwardness of Auto In.
dustry Cited as One Reason
for High Tariff Wall.
BY GERvILLE REACHE.

| By Gable TO The Star.
PARIS. October 15.-The Paris au.
| tomobile salon, now in the midst OF
its annual exhibition, has demonstrat-
ed the undeniable superiority of Amer
| ican cars and the advantage OF mass
| production.
OF course, France is by no means
| outdistanced in the luxury feld, out
| in price competition we can only holo
our own, thanks to protective tarlit.
which is not very healthy situation
for anv Industry. It should be noted
that the new tariffs, over which there
is 80 much dispute. do not apply to
motor cars.
But why cannot France manufac-
ture automobiles as cheaply as the
United States?
Lower Pay Cited.
While the average uuskilled worker
In America earns SIS week. the aV-
erage in France is only $40 or sl2
But the French workman produces
much less. We have an immense sys
tenn of laws governing working condi-
tions which seriously hamper our fac-
tories, and only with enormous difficult
ties can our manufacturers introduce
modern chain methods and shop dis
cipline, which have been brought to
such perfection in America.
Wages is the only element which Is
cheaper in France than in America.
Almost everything else is dearer. Cap
ital even in the form of commercial
paper, Is heavily taxed. and the cost of
long.term paper is quite out Of reach.
The United States during the first nine
months Of 1927 issued S5,475,000, 900 in
new securities, whereas France in the
same period issued only $4,000, 900,
Taxes here are crushing. It is cal
culated they absorb 80 per cent of the
national income, which gives France
easily first place in the world. More
over. the taxation is badly distributed
and falls principally on industry and
| trade. In some cases taxes on secu-
rites absorb the entire dividend. while
the average Is about 80 per cent.
Mass Output In Infancy.
Mass production is also in its in
fancy here. We depend on the United
States for machine tools, for not long
ago our factories were producing
! shells, not motor cars. Again, many
| factories deliberately restrict output TO
avoid excess profits taxes. The big
gest factories turn out from 80 to 400
cars a day. and the market cannot
| ABSORB these quantities, particularly
since advertising costs much more
than in America and is much less eff.
cient.
| This comparison shows how wise
the American Government was this
week to treat France with consdera.
ton. which has been deeply appre'
ciated here.
The American treasury was we'll in.
spired to authorize conversion Of the
Morgan per cent loan, for what
France chiefly needs is not dear
money. but sound financial methods
and discipline of labor. Improving
our credit at home and abroad betters
our whole situation.
| France Far From Cured
Although in the tariff negotiations
America has not abandoned it's de.
mand that France concede in advance
the very principle that is at stake
nevertheless opportunity is left for
France to send a conciliatory reply
and make concrete offers toward an
agreement.
The wounded must be treated with
hgreat gentleness. even when GONZALES
cent. France, unfortunately, Is fal
from entirely cured OF her wounds.