Evening star., 1933-07-27
i. S. CODE RAISES
EXPORTS PROBLEM
Firms IN Foreign Trade Seek
Ways to Comply and
= Still Operate.

national industrial recovery act and yet
remain tn business.
They are cheered by the gain In
United States exports last month over
June year ago. but they point out that
our export gains are only about per
cent. while imitation, tn terms Of the
dollars decline against gold, has ap-
proximated 80 per cent.
Exporters are heartened by the fact
that world consumption OF raw mate
rails. such as copper. seems to be ad-
vancing at more rapid rate than even
in this country. They show less en-
thusiasm. however. when they look at
the raw materials which they must i'm
port for their finished products. The
dollar, they assert, has deprecated
more in terms of rubber than in terms
of gold.
The volume Of inquiries received from
prospective foreign selling agents for
American products has increased In the
last few weeks. Within six weeks more
than ITS queries from all countries and
for all products have been received by
one export association here. Unfortu-
nately. it is said, these prospective sellers
Of American goods are not up to date
on their knowledge Of the recovery steps
being taken in this country. The ef-
feet of the recovery act on prices ap-
parently has not yet percolated IN some
foreign parts.
Selling Price Is Problem.
Exporters would like to keep their
prices for goods abroad below our in
ternal price level. II they are unable to
do this they will be kept out Of foreign
markets, yet other nations plan to raise
"a hn~
American exporters follow this plan.
It Is these considerations and many
others that will have to be taken up by
. subcommittee formed last week by
managers Of the Webb Law Associations
at meeting called at noon today by
the National Foreign Trade Council
This small subcommittee will have to
discuss such questions as how It will be
possible for American exporters to be
exempt from the blanket code in rela-
tion to selling prices.
Exporters have made II clear that
they are willing to abide by wages,
hours and working conditions provided
under the national industrial recovery
act. They do not understand, however,
how they will be able to maintain
American prices in world markets.
The foreign selling price of Ameri-
can merchandise is likely to put it at
sizable disadvantage with competing
goods from other nations not operating
under recovery measures.
1t is doubtful If exporters will try to
reach a single export price, as they are
permitted to do under the provisions of
the Webb law. which permits virtually
trust operations in markets outside OF
the United States to American pro-
ducers. The So Webb Law Associations
now active in major exporting indus
tries are in agreement that export
prices must be kept below internal
prices. but they disagree on how this
will be accomplished.
Want Compqition Curb.
Similarly. they agree that competition
must be curbed within the United
States but they argue that such regula-
tions should not affect goods bound for
foreign shores. They would like to
lower their own costs. excepting labor,
below those of industries manufacturing
exclusively for the United States.
They point out that normally infia-
ton stimulates exports and discourages
imports. Thus far the American pro-
gram has achieved both of these goals.
The appreciation Of the yen in terms
OF the dollar, for instance, Is shutting
out threatened ruinous competition from
Japanese cotton goods manufacturers
In fact, most Of these japanese firms
are withdrawing quotations because of
the yen-dollar fluctuations
Numerous domestic manufacturers al
ready are feeling the effects of de-
creased imports by an upturn in their
business. On the other hand. If the
United States expects the world to buy
from it. this country will have to buy
from other nations. As late as 1928
American exports provided daily en-
ploymept for 5000. 900 families.
An increase in the number of Amer
ican tourists. an expansion Of imports.
or the resumption Of foreign loans would
provide other nations with funds en-
abling them to buy in this market.
Foreign lending. however. seems to be
quite outside the realms of possibility
under the new securities act, which
would necessitate statements that would
prevent the sale Of many foreign bonds
here.
Further gains in American tourists
would be especially welcome to Amer
lean shipping companies, which are
anxious to see also q quickening of
world trade and thus put idle ships and
seamen to work. How much the recent
stock market crash may interfere with
travel abroad the rest Of this season
remains to be seen.
tCopyrisht. 1e33)