Evening star., 1927-04-17

were able to undersell Germany in her
own domestic market because Of their
/ denreciated currency. Germany want
ed her domestic market herSeT, Iot II
( is a good one BY limiting produc
/ ton, and by assessing each producer
/ 81 a ton Of steel produced. il was
! boped to raise the price Of steel in the
/ foreign markets. and it did rise 81
and S5 a ton Steel was shipped into
England in great quantities because
the coal strike there had cut Britain s
domestic production far below normal.
But this was only temporary. and
when the coal strike ended Great Brit
ain resumed her own production In
the meantime. the old-time jockeying
for markets abroad continued. And
from the American standpoint the eff
/ feet of increased prices of steel in neu-
trial foreign markets was interesting.
American producers cannot compete,
under normal conditions, with Euro
pean producers OF steel, because OF
the difference in the cost of produc-
ton But when steel went up it had
the effect of putting the American
producer more nearly on an equal
footing with his European rival The
effect was hardly noticeable, so far as
the American producers were con
CerDed, because of the small percent
(
the effect on American producers was
beneficial one. And the same thing
would undoubtedly apply in other
commodities If combinations of for
eign producers result in an increased
price in neutral markets. result to
be sought by the combinations-it
would serve only to increase American
opportunities in the competitive field
OF foreign commerce.
Great Britain so far has kept out
Of the steel entente, and it is a ques-
ton whether she will ever enter it,
Recent figures show that Germany is
the chief benefactor under the agree
ment. with the chances being that
she viii achieve domination Of the
field She paid fines of over 50 100000
i'm the last quarter for exceeding her
quota, while France received reim-
bursement for underproduction. But
Germany evidently is willing TO pay
the fine, and still profit
Plan Is Not New.
The international trade combination
Is nothing new. There were many of
them before the war. But those
formed since the war are regarded
as of greater significance, chiefly be-
cause of the fact that the govern
ments are taking a direct interest in
their formation. The steel combine,
for instance, played an important
part in the negotiations leading
to the Franco-German commercial
treaty, Germany holding OUT to
some extent until the steel agreement
was signed The Frances German pot
ash agreement was negotiated under
government auspices. because of the
peculiarly close relationship between
the governments and the potash in
dustries. Some European writers
point out that trade combinations
eventually will pave the way to
European customs union, for an agree
ment assuring each of the participat-
ing countries its own domestic market,
and limiting production through the
payment of fines, with price fixing to
follow. would largely eliminate the
tariff factor.
One can, of course, see the adTan-
tages to European industries of
closely-knit combinations. With their
power to control production. fix prices
and regulate competition, they might
be enabled to initiate American meth
DDS of mass production. efficiency and
low operating costs. But the prob
lem lies in the ability TO regulate
competition. 1t is a question whether
competition between the industries of
different countries can be successfully
regulated. 1t is doubtful whether
operating costs. the meat of the whole
problem, would be lowered by curb
ing production 1t might have the
opposite effect.
Robinson to Head Delegates.
The American, who has seen his
country grow to its present industrial
leadership Of the world, firmly believes
> e44 eaT Yarr
methods Of production, efficiency, and
enterprise born of the necessity To
sink or swim in a competitive system
Dedicated as he is to this competitive
system, and definitely opposed to
trusts, combinations in restraint Of
trade. price fixing and other such
/ artificial devices, he win have diff
Guilty in getting the European view
point As for the effect on American
/ commerce of a widely adopted series
of industrial alliances abroad, that
| remains to be seen.
While Americans may oppose il in
/ principle. however, the opposition is
not founded upon a fear of the results
/ on their own country's commerce. No
4 Government official or exporter has
/ been reported losing any large amount
| Of sleep over the prospect and no epi-
! demic of nervous prostration is antici.
pated
Possibly the greatest contribution
| that the American delegates may
make toward helping Europe at this
/ coming economic conference is their
sympathetic cooperation. 1t is doubt
/ full if they can offer more President
! Coolidge has chosen a delegation of
/ experts which may be counted upon
as being representative of American
industry The delegates will be led by
/ Henry NJ. Robinson of Los Angeles,
lawyer and banker, former Shipping
Board commissioner, a member Of the
4 supreme economic council at the Paris
peace conference and a member Of
the Reparations Commissions Norman
II. Davis of New York City, former
Assistant Secretary of State and for
mer Assistant Secretary Of the Treas
ury, John ". Leary of Chicago, presi-
dent Of the United States Chamber Of
Commerce. Alonzo f. Taylor Of lie.
land Stanford University and Or
Julius Klein director Of the Bureau
Of Foreign and Domestic Commerce of
the Department of Commerce. Ac-
companying the delegates are four ex.
perts-Louis Domeratsky. chief Of the
division Of regional information; Gros-
venor Jones, chief Of the finance and
investment division, DIR E Dana Du-
rand, chief of the research division
and Henry Chalmers, chief Of the for
eien tariff division. all of the Bureau
Of Foreign and Domestic Commerce.
Ruins Of Sanctuary