The Tacoma times. [volume] (Tacoma, Wash.) 1903-1949, 1941-09-08

pendent of the outside world in the domains food
stuffs and indispensable industrial materials All
other products particularly those do without
in times Of emergency. but which are part OF me
standard OF living to which highly developed nation
has just claim, will continue to De obtained from
foreign sources in exchange for our own surplus pro
ducton of manufactured articles
In other words the National Socialist government in
tends after the TO maintain the policy they have already
been pracenr before the wao be sefsuffeent in food
stuffs and industrial materials.
In the light Of this official standpoint lets look
back 10 the propaganda Of our New York Nahs
How in the world expect TO sell cotton. wheat
copper when every Of these items Is blocked
out by the Nazis the basis Of national policy!
But someone say that Secretary Of State Neumann
Il willing that Germany import from other products.
particularly those do without in times Of emer
sency With foodsuffs and industrial materials ruled
out what about chances Of selling manufactured goods
Well to tell the truth. each Of the % import con-
troll offices in Germany has advisory committee
taken from German industry and trade. Most OF
these committees headed by business men who
are manufacturing articles which are usually com,
petitive with American products. They have adopted
very consistent policy Of keeping out foreign
products which might hurt their own business -,
Yes, but what did trade before the war actually
Of If all these kinds of goods kept out? The
1t made up first Of rush shipments OF emer
seney stocks and equipment; and secondly OF goods
shipped by American companies TO their subsidiaries in
Germany, in the hope that day arrangements could
Be made to obtain payment
As matter Of fact such latter goods not
traded to Germ.ny-they were given. OF course.
II We want TO do more business like that-gNing
Germany something for nothing Il Am sure the
Nazis would usually oblge by taking il.
Now what about the possibilities of barter arrangements
with victorious Germany after the war? Remember that
Germany would be Europe Could we barter with Europe
feet Probably no American has had the opportunity to
see much negotiation for barter deals as have
II my experience that the only successful barter
negotiations which our American firms able TO
conclude with Germany small deals averaging perhaps
usually covered commodities the firm produced used
itself and which not for resale TO others but in this
modern world it is to find the possibility of large
business arrangements of this type
seldom could we find a single American company
which could exchange article Of its manufac
ftDnfo maj ro eauVe Ter
happened to manufacture product that our
firm wanted and where the price Of the goods on
both sides proved suitable.
Usually international trade occurs in items which
for resale and not for use directly by the importer
In where goods must be resold. this simple
type Of barter fails TO meet the situation.
Not only tha-he German government set up rules and
regulations the conduct of barter deals which made them
impossible far the United States concerned
Since Germany desired reduce imports from the United
States and increase exports 10 this country the German gov
unwilling TO allow barter deals with us at the
straight ratio of for They insisted that the barter
ratio should be n minimum of unit Of American
goods value and the balance in cash against la units Of
German goods In value
do not happen remember any deal which actually
able work out at this minimum rate The usual barter
ratio for ordinary commodities set at three TO
barter 100000 worth of wanus but found they would
have buy 100000 worth of German burap bags and
would have invest cash and hope to be able TO
this money by the resale of the bags and wire IN the
United States
Such arrangement makes trade practically impossible
for American interests. Most of firms know their own
business than other business Our walnut
know something about selling wanuts but little of the
market for buap bags and barbed wire IL they succeeded
In getting rid of their wanu Germany they found them
selves faced with the problem of getting rid of three times
large a quantity of unfamiliar German goods the
which they started to SELL No wonder the negotia
tions broke down.
OF course. in any barter arrangement the German
insisted upon fixing the price both Of the
American and Of the German goods in question
The price set German goods WAS usually the
loca price. naturally high account Of the high
nominal exchange value Of the mark and the amount
Of currency and credit initiation which has gone
inside Germany. The price set on the American goods
usually arbitrarily low and represented AN
attempt TO beat down.
In order TO something from the wreck Of their Ger
holdings American companies have been forced
feen from their usual line of business that they could hardly
hope the in this other countries except
at considerable loss.
In this category the 100000 mouth organs which
oil company got in exchange for large for making
automobile bodies and the live hppopotamus which motion
picture firm took payment for motion picture films
Other firms have taken patents parcpaons, processes
outstanding large much of which probably total
loss
IL II not rs IL the Germans completely unable
20 their debts. For instance. the German govern
ment suspends interest payments on bonds held IN the
United States until the market price Of such bonds
falls to very low levels-sueh five cents on the
dollar.
Al that point the Germans quietly proceed 10 buy
M the bonds They doing AT the present
tine, and profit BY their default.
In the way the German government has claimed 10
unable to allow for American merchandise ship
ned long ago Germany unable pay Americans the
Judgments which German courts have rendered their favor