Detroit evening times., 1945-07-20

ulSlly uulIlb lilc WdI llldhcS
this problem increasingly acute,
for while it is our desire TO en-
ploy our plant and equipment
10 full capacity to provide work
for our people, it is equally the
desire of the governments of
all other industrial countries 10
achieve the same end.
To cite a specific example:
the American aeronautics in
dustry alone is in a position, as
a result of war expansion, TO
provide all the airplanes that
the world may require.
IN the matter of rubber, the
L problem is even more COM
pleX.-
Synthetic rubber production
has developed so rapidly during
the war in the United States,
Germany and Soviet Russia,
that the quantity of raw rubber
TO be consumed must be ac-
fected adversely.
The rubber problem then
comes down to this;
l. If raw rubber is expensive
or unavailable, synthetic rubber
will be used.
2. For certain commodities,
synthetic rubber is as good or
superior to the raw product and
vice versa.
3. That inevitably raw and
synthetic rubber will compete,
resulting in a decline in the
consumption of raw,
THIS instance can be multi
Il piled by many products IN
world trade except some metals
of which there is a shortage and
such products as coffee in which
certain countries specialize be-
cause of climate and specific soil
characteristics.
A free-for-all fight in the mar
ketS. subsidies by governments,
tariff barriers, quotas of imports
and exchange manlpulations Will
not solve this problem.
At the London economic con-
ference in 1893, it was hoped
that an international agreement
might lead to a solution, but
that conference failed.
Mr.. Hul's reciprocal tariffs
were an alternative but they
functioned in a limited world
trade, due 10 the depression.
The cartel is a device for allo-
eating markets among producers
Of the same commodity in differ
ent countries.
The theory of the cartel is
that while il determines the par
ticular markets in which COM
pany may participate, it pre-
vents disastrous price wars and
eliminates undue and unfair
competition while stimulating
consumption and if successful.
there will be an increased
share for all participants. Like
all economic theories, it has not
always worked out.
At any rate, the cartel in cer-
tain countries has been popular;
in others, it has a very bad
name.
MANY American producers
WI jointed cartels, particularly
those engaged In the chemical
industries.
Many cartelS provide not only
for an exchange of business in
formation but of patents and of
patent rights.
In the United States, some
American companies find them
selves in difficulties because they
had exchanged business and pat
ent information with German
companies and had entered pat
ent pools in which the Germans
were participants.
The critics of this process
have rarely pointed TO the fact
that we got more from the Ger
mans than we gave, particularly
the sulfa drugs and butadiene, A
base for synthetic rubber TO
mention two items which helped
us win the war.
THIS is not written in defense
Il of nor in antagonism to the
cartel as an economic device.
1t simply calls attention to
the fact that other industrial
countries are not going 10 be
flooded by American goods nor
will the United States be flooded
by goods manufactured with
low wage scale, nor will any
nation that wants TO sell see it.
self excluded from world mar
ketS without doing something 10
protect its economy and provide
employment for its peoples.
This then poses difficult and
vexing problem which cannot be
solved by prejudice or slogans
or excitement.
II will require the cool judg-
ment of sincere thinkers and
even some experimentation.
The elimination of German
industry or even Japanese indus
try has not Simplifed the situa-
tion as much as many at first
believed. because the industrial
plants stand and some one will
T. IL