Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-12-08
us. AUTO IMPORTS
I AROUS|NG EUROPE
developments in Industry
Cause Anxiety-ISsue Up
at Brussels This Week.
BY GERvILLE xEACm.
By Gable to The Star.

By Gable to The Star
PARIS, December THE conference
Of European motor car builders will
meet in Brussels this coming week, as
a result of preceding conversations on
the subject of examining the question
of importing American cars to the con-
tinent.
It is known that the British have
studied very closely this turn Of affairs
in the European motor industry, eS-
peciaIly the possibility of the dumping
over here of American cars. Moreover,
there was much. excitement in Ger
many over the purchase by General
Motors of the Opel Works, which re-
suited in a considerable reduction Of
production, due to the elimination OF
q possible rival to American imports.
The news that Henry Ford and other
industrialists in America have increased
Workmen'S salaries also caused anxiety
In Europe, which has been increased by
the expressed desire of the Washington
Government to stimulate general ex-
ports.
The developments and expansion of
the power of American industries is
constant menace to the European eco
non1y, the more formidable because the
export trade of the United States
Nations production.
AS Europe lately has imported about
one-half of the American exports
about S2,50o 100000 worth-it would
suffice for the United States to in
crease its exports by only 5 per cent
of its amount of production for Europe
to be Obliged to absorb $1,25o' 600 600
more Merchandise. But could Europe
do thiss Certainly not.
uTtoR &rOllld result moreover, from
the new increase of salaries in America?
Obviously the purchasing power OF the
home market would be increased, but
would this favor the dumping" that
Europe fears? Certainly 1t is favorable
to American production to lower export
prices when, after having paid on on
an immense market the net cost OF
goods. it provides a small surplus cost
ing America nothing for foreign
markets.
But If exports and likewise the net
cost of merchandise were increased
through higher salaries, wouldn't the
prices In foreign markets be much too
high? Until now high salaries and
high living costs in the United States
have only Just compensated for the
enormous cost of the national debts in
Europe.
The annual cost of the national debt
in the United States is just little more
than $6 per capita. while in England
it is $685. in France $24, in Canada
nearly $13 and in Belgium, $40. The
entire weight CT the national debts per
capita is STAT for an American, $1S8
for Belgian, $216 for Canadian, SAP
for Frenchman and $500 for an Eng
1shman.
And If we consider the idea of ma
tional revenue. we perceive that the
French treasury exactS nearly % per
cent in taxes. For instance, In the
price of a motor car sold in France you
may count on at least 80 per cent taxes,
for France is one of those rare coun-
tries which maintained supplementary
luxury tax on motor cars.
Despite these enormous taxes. scarcely
compensated for by tariffs. the Aneri-
can motor car has made its competition
so keenly felt that French firms have
put patriotic advertisements in the
newspapers, asking their clients serious
~ TO buy French cars to the exclusion
of foreign cars.
(Copyright 1927