The potters herald. [volume] (East Liverpool, Ohio) 1899-1982, 1948-05-20
Comment On
World Events

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States and the semi-socialist ma
tions Of western Europe in a broad
program of reviving international
trade will be possible if the United
States is willing to reduce tariffs,
curb monopolies and make other
concessions, says forthcoming
Twentieth Century Fund report on
the policy of the United States on
international cartels. The chances
of Soviet cooperation in joint eff
forts to revive world trade, how
ever, are almost zero, says George
w. Stocking and Myron w. Wat
kins, research directors of the
funds survey, which is to be issued
soon under the title, Cartels or
Competition?
The economic controls of the
semi-socialist western European
nations do not jibe with the Ameri-
can policy of free market econo-
my with no discriminatory controls,
the report acknowledges; but it
points out that many of the con-
trolls are a hangover from the war.
AS living conditions become easier,
controls may become less stringent.
Furthermore, the western Euro
pean countries, unlike Russia, do
not pursue self-sufficiency poll
cies. Nor is their development of
public enterprise tied up with a
Messianic world-revolutionary ideo-
logy. They are industrialized ma
tions which have always relied on
foreign trade for part of their live
lihood and they are not totalitarian
in aim. or practice. The report
claims that specialization is occur
ring on a more or less piecemeal
and tentative basis with democrat
ic checks and balances provided for.
The funds survey emphasizes the
fact that obtaining the support of
other nations for our trade poll
cies will require major economic
concessions on our part. If we want
untrammelled foreign trade we will
have to reduce our own tariffs and
curb our own monopolies, it con-
tends, as other countries fear the
domination of our enormous corpor-
ations if they give up the protec-
tion of tariffs and import restric-
tions.
"They fear that the projected
ITO will open the door, not to free
competition, but to the destructive
competition of American monopo-
listic big business. They may well
come American loans and invest
ments, but they dread the develop
ment of kind of American inn
perialism. To allay that dread will
be the first task of the United
States and its biggest contributions
to reconstruction of information
al trade through private enterprise
unhindered by cartel restrictions
To reduce the monopolistic ele-
ments in the structure of Ameri-
can industry will be part of the
price America must pay for the
sort of world economy it seeks"
the authors state.
According to the fund report, the
revival of free markets hinges on
3 basic conditions. First, there must
be an all-around reduction of tar
ifs and other limitations on inn
ports. The United States must be
prepared to make substantial con
cessions to countries whose indus
tries are now unable to compete
on equal terms with similar invest
ment. Capital funds must move
from capital-rich to capital-poor
countries if trade is to grow. Third,
positive steps must be taken to ex-
tend free competition in world mar
kets and to eliminate cartels. These
steps might include revision of pa
tent practices to prevent monopo-
listic agreements based on control
of patents, revision of corporation
laws, and new rules on fair busi-
ness practice.
selves in cooperation with other