The Western news. [volume] (Libby, Mont.) 1933-current, 1935-02-14
See Hull Victory

Dec nuII Victory
Signs OF the Hull victory were frs
evident when this German agreemen
was held up. Best information toda.
is that 1t will never receive White
House approval, despite the fact tina
1t would dispose of half million bale.
OF American cotton. Germany woult
give. small amount of cash, and
large amount OF registered OF
blocked" marks.
1t Is on these blocked marks that ths
trouble centers In this particular agree
ment. Rut the trouble here Is OF the
essence of the objections to the whole
barter plan. For 1t would force trade
so to speak. along new and unnatural
channels, against not only inertia but
the active opposition. OF existing trade
agencies. The point regarding the
marks is that there Is already q stu
pendous amount OF these blocked
marks on the market. They can be
used for only one purpose--to buy Ger
man goods for export. In the present
instance thls Is serious objection.
There is very reaH boycott against
German goods, especially on the part
of our department stores, which for
some time have handled very large
percentage OF all German imports
So the blocked marks On the market
are selling at very sharp discount.
Germany Is deliberately encouraging
this discount, figuring that the profit
which would accrue to anyone using
them to buy German goods for some
other country will eventually break
through the deadlock. Purchase by
the United States government, under
the Peak agreement now on the Presi-
dents desk, OF some forty million dol
lars worth of blocked marks, In addi-
ton to those already for sale, would
accentuate this situation sharply.
Foreign Trade
Illustrating the generally unestimat-
ed value OF foreign trade to American
workers. computation that no less
than 100000 Americans last year
were dependent on American exports
has been prepared by one of the ex-
perts working on the problem OF how
to get some activity In the apparently
inactive negotiations for more reci-
procal trade agreements
The figure has amazed senators and
members of the house to which 1t has
been shown, especially as SO much
stress has been laid In the last few
years on the small percentage Of this
or that product OF America which was
exported. Such statements have gen.
orally been made In connection with an
argument that America could disregard
the rest of the world, build Chinese
wall around itself economically, and
prosper.
Starting Off with the automotive In
dustry," this expert said. there were
some $4,000 cars, trucks and buses
exported from America In 1884, either
direct from American plants or for To-
cal assembly In branch plants abroad.
Each of these vehicles represents a
minimum OF 500 hours OF labor, that
estimate growing out Of an MIRA study
last year showing an average OF 140
hours per automobile In final assembly
and such processes OF machining, paint
Ing, upholstery, etc. as are performed
directly In the automobile factories.
Fabrication of parts purchased from
outside factories, the production OF
basic raw materials and other proc
esses~are additional, the total of which
may be guessed as doubling the work
done In the automotive factories Add
Ing modest amount to cover transport
tation, both during and after fabrica-
ton, and such other things as sales
force, executive supervision. account
Ing, bank clearances, etc, the estimate
of 500 hours per automobile u.s. Ii any
thing, highly conservative.
Now, II you multiply 500 hours by
the $4,000 units exported last year
we have at least 175000,0O0 hours Of
labor, which, at IS hours week. makes
100000 weeks or 100000 years. And
bear in mind that this Is direct labor.
Overseas Car Sales
But this Is only the beginning.
Overseas sales of automotive products
other than new cars and trucks are
large, embracing parts, accessories and
garage equipment fspark plugs stor-
age batteries, tires, brake lining, gears,
pistons, rings, valves, carburetors. etc.)
required In expanding volume to sery-
Ice the automobiles In current opera
ton In other countries. No practical
method exists for estimating the labor
time involved In such exports IN 1894.
but | would guess 1t as 10000 years.
Thus, we credit the export section of
the automotlve industry with having
supplied an equivalent of 10000 years
Of work to American workers In 1884.
"Automotive exports are tenth of
our total trade, approximately. AS
Stunning that same average, we have
] 100000 years Of work last year In
volved In export trade. Taking FIVE
to the family, such trade directly pro-
vided the livelihood OF 100000 men,
and children In 1884.