Evening star., 1927-05-25
AMERICANS FIGHT
FOREIGN CARTELS
Trade Convention Casting
About for Weapons to At
tack Movement Abroad.
BY. J. c. ROYLE.

Special Dispatch to The Star.
I NEW YORK. May 25.-The cartel
is the threat which is hanging over
the future of America s foreign trade.
That was universally admitted today
when delegates gathered in Detroit
for the fourteenth session of the Ma
tiona Foreign Trade Convention.
The word cartel" itself has two
meanings, and und~r either ii is n
menace, according to delegates. 1t
means, first. an agreement between
two or more parties. Under that
meaning the dominant interests in
various lines Of industry and com
merce in other parts of the world
have combined. They have Joined not
only within the individual countries.
but with other countries against
American trade encroachments.
The second meaning is a challenge
to individual combat. In prescnt-daN
parlance this means a combat indi
vidually on the part of American eX-
porters and in combination ON the
part of European competitors. In
other words, the American trade has
got to lick the gang, and delegates
are striving vigorously To find means
of doing so. The majority seem to
believe the most potent answer is in
manufacturing, in sales efficiency.
CarteIs and Comhina ions on this
side OF the ocean are out of the GueS-
ton because of the antitrust laws
aimed against the sitting of cOmpeti-
ton. But the Edge act and some of
the banking laws now offer some aid.
Exporters who were discussing the
problem declare that success in cap.
turing foreign markets for America
is not dependent on price. In some
lines producers of this country can.
not meet the prices established by the
foreign combinations. but all agree
that each American product has some
advantage which if found and utilized
will equaliZe the price factor
Foreign trade so far this year has
been at a decidedly lower price level
than in 1926. But the balance of trade
In favor of the United States has i'm.
proved. which shows that a single
handed light is not necessarily a los
Ing one. For the first quarter of the
year., hgures for which period are
complete, exports were valued at
S1.201 100000 and imports $1.047, 600
900, leaving balance of trade in
favor of this country of S154.000, 900.
rms was sharp reversal of the posi-
Ton of a year ago, when imports ex-
ceeded exports by S123, 900 600. The
disorders in the Far East are having
q bad effect on the trade with the
oriental countries, but despite this the
aggregate movement of goods has held
up better than might have been ex-
pected. The chief commodities af.
fected so far have been oil and tobacco
products.
There has also been somewhat of
a recession in certain lines of South
american trade; this. however. is
deemed merely temporary, since the
tendency seems firmly indicative of
heaIthy growth fostered by the fruit
ana sugar investments of American
capital and the activities of the min
ing and oil interests along the North
ana West coasts of the continent.
England's serving of diplomatic re-
iations with Russia is not likely to
enhance the trade of the United
States with that country. Terrific
losses suffered by some American
manufacturing firms which had ex-
fensive branches in Russia before
the revolution have not been forgot
ten, and the statement by the British |
prime minister that evidence of |
Soviet intrigue aimed against the
United States had been uncovered in !
London Is not likely to encourage
American merchants are making
the advantage of American time saw
ing methods felt in European trade.
For example. style catalogues now
are being transmitted by wireless
pictures from Paris to San Francisco. |
whereas nearly a fortnight formerly
was required to send them by mail.