Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-10-31
DETROIT ASSUMES
HOPEFUL ATTITUDE
Most Outstanding Cause of
Concern in-Motor Industry
Is Foreign Market.
nv DAVID LAWRENCE.

DETROIT, Mich, October 81 (C.P.A.).
Although the production curve In TINS
capital of industry is far from normal,
there is a mood of determination ana
hopefulness here which bellies the pre-
vailing impression elsewhere that this
q the gloom center of the country.
Most of the plants are running on
part-time schedules and the unemploy-
ment figures are, of course, unusually
high. But the City Welware Depart
ment is seeing to it that nobody goes
hungry and just this week there Is
Community Chest drive which Is gong
over the top. Many people have actu-
ally increased their contributions. so
long as this kind of spirit prevails In
Detroit the effects Of the depression are
not going to be lasting.
Digging down underneath. the most
outstanding cause of concern In the
motor industry is the foreign market.
And the single topic on which criticism
seems to be almost unanimous Is the
tariff. The automobile people here had
about figured out requirements OF the
domestic market for requirements OF old
cars, but they depended considerably
on the foreign demand to keep their
factories going full time.
Foi eign Business Hit.
The chances of doing any foreign
business now, in the face of tariff
which has aroused such bitterness
abroad are considered remote. Most OF
the companies have either shut down
altogether or temporarily abandoned
their foreign developments. South
America, from which a substantial line
of orders was expected to flow this year.
IL now regarded as an unhappy market.
Reports tell Of such hostility over the
even get a civil reception.
The truth Is that the motor industry
did not want any tariff on its own pro-
ducts and would have been content to
see foreign make automobiles come in
here without duty-So conndent nave
American manufacturers been OF the
superior quality of their own product
in the various price fields. But now the
situation has charged and it is doubt
full whether the American cars Will
ever be able to compete abroad with
the heavy tariffs laid against them. or
else with the hostile feeling that pre-
walls in countries where no tariff duty
has been imposed.
Statesmen Protest.
The cry most heard here is that of
the European and South American
statesmen:
How do you expect to have foreign
sountries buying anything from America
when the United States r,akes it i'm
possible for the foreign countries TO
sell their products to America"
So far as the automobile industry Is
concerned the tariff is not dead issue.
There will arise inevitably demand for
reciprocity agreements with foreign
countries and if other industries which
have foreign markets are as aggrieved
as the automobile men, the demand Tor
negotiations with foreign governments
viii by no means be ephemeral.
Politics in Michigan reveals very little
difference from other States-there will
be heavy Democratic vote polled-but
Senator James Couzens, Republican
nominee, is assured Of reelection. He
Is at present convalescing from an
operation q fortnight ago and has not
been able, therefore, to make an active
campaign.
(Copyright. 1902