The potters herald. [volume] (East Liverpool, Ohio) 1899-1982, 1944-06-08
Mott Woll Delivers Inspiring
Talk On International Trade
Before Chemists Association

can producer to sell better products at
lower price than his foreign com
petitor ceased to be a decisive factor;
the question was not the price or the
quality of the imports; it was the
question whether payment for imports
could be made in the products of the
purchasing country.
Trade Treaty Benefits Scrapped
These circumstances lead to certain
conclusions
| 1t seems a foregone conclusion that
Russia will exert a political and eco
nomic hegemony over east Europe,
from Finland through Poland and
Czechoslovallia and Yugoslavia The
almost inevitable result may be the
creation of counterbalancing block
of western European states led by the
United Kingdom. This would mean the
creation of bloc of states and
colonial empires that cover the greater
part of the world.
1t is sometimes forgotten that in
1899 the beginning of such bloc has
been made Financial and economic
|
United Kingdom on the one hand and
France, Belgium and the Netherlands
on the other in 1889 and early 1910.
The terms of the economic accord of
December 4, 1899, between France and
the United Kingdom eXemplifying the
character of the accords and give
picture of postwar possibilities which
gains significance because of the view
generally held in British and French
official circles - then and now - that
the accords should be maintained after
the war.
1t seems unnecessary to emphasize
the effects upon American farmers,
manufacturers and workers, dependent
upon export markets and subject to
import competition, which would fol
low the postwar creation of IL trade
cartel of this character between the
British French, Dutch and Belgian
empires, together with the participa-
ton of the scandinavian states, de-
pendent upon British markets, and
possibly including Spain, Portugal and
Italy.
This state trading cartel, it should
be recalled, was actually established
In a tentative form during the early
part of 1910. Its development was
terminated only by the collapse of
western Europe. After the war the
emergence of Russian hegemOny in
east and southeast Europe may we'll
impose some such combination as a
measure Of European self-defense.
In addition, the financial position
of postwar England will be badly
shaken by war expenditures England
will naturally tend to finance its huge
import surplus by preferential buying
in countries that will accept payment
in British goods and services Eng
lands former revenues from foreign
investments, shipping banking and
trade will have declined once more as
in 19l4-1S.
| 1t would be Il grave oversight 40
ignore the prospect that political and
economic circumstances may neces
state the creation of this huge prefer
encial bloc of nations, with the re-
sultant adverse effects upon American
trade at home and abroad
State Trading Ageneies--Preferential
Tariffs
international competition, under the
State clearing systems, and exchange
control systems ceased TO he conducted
| by private enterprise; buying and sell
ing In open markets ut competitive
/
| mated. The balanced clearing agree
ments, which determined, over long
periods, the volume of goods eXchang-
| ed and frequently Also their prices,
eliminated open markets and competi
tion in them. Price, quality and cost
competing In open markets ceased 10
be the basis of world trade.
There Is no convincing evidence that |
after the war the principal countries
of the world vii have either the means |
or the desire to abandon state control |
of foreign trade and foreign exchange |
Emergency conditions will remain for
some years In the domestic fields of re-
construction and Unemployment, as well |
as In international trade and financial |
relations.
Even the great resources of the
United States are not sufficient TO
finance, on n long-term credit basis,
the program of European and world |
reconstruction In such "a manner that
restrictions upon international trade
and financial transactions could be
generally Abandoned
II seems almost foregone conclu-
sion that many nations, particularly In
Europe, viii maintain state agencies
for control and direction of foreign
trade. Long before the present war
international cartels and giant corpo-
rations dominated world trade In many
products. Even as far back as 1915 IL
was calculated that H. American cor
pontions accounted for ~ per cent OF
the value of industrial exports OF the
United States
Continued next week.