Evening star. [volume] (Washington, D.C.) 1854-1972, 1959-03-01
By HERBERT M. BRATTER
Contributing Writer

a growing number Of Americans
who think that we are pricing
ourselves out Of world markets
and indeed, out Of the home
market.
In his press conference last
week Mr.. Eisenhower said:
IT believe that the reason we
are having so much trouble
competing with other coun-
tries not only within the
neutral markets like in Mexico
but right here at home, we
can't compete with them.
"Our costs are just too high.
We cannot continue to increase
these costs and have the kind
Of foreign trade that viii make
our own country prosperous.
What prompted the Presidents
remarks was a question about the
award earlier in February Of q
iva turbine contract to q British
firm whose $l2 million bid was
about IS million below the nearest
American company's bid. In the
earlier Greer's Ferry. Ark, case
the low British bid was thrown
out on the grounds of national
defense"
Concerned Over the Dollar
The President and his financial
aides. including Secretary of the
Treasury Anderson and Federal
Reserve Board Chairman Martin,
have been very much concerned
over the effect Of rising costs on
the stability Of the dollar at home
and abroad. Both Mr.. Anderson
and Mr.. Martin have reported en-
countering abroad increasing APP
prehension about the strength Of
the American monetary unit.
Evidence Of diminished foreign
confidence in the dollar may be
found in the heavy outflow Of gold
from the United States over the
last year and longer. In q number
OF foreign countries the United
States dollar is quoted at q small
discount from parity. This rep
resents quite q change from the
postwar decade, when the dollar
was a scarce currency almost
everywhere.
Whereas formerly the United
States dollar could look down its
nose at foreign monetary units like
the pound, the Ira and the pesos
of Latin America, now quite
number Of European currencies
can look the dollar straight in the
eye. Last December Europe's lead
ing currencies were made almost
fully convertible. This means in
creased esteem for European units
and reflects the fact that they
have improved buying power at
home. The same goes for Japan's
yen.
Comeback Abroad
In other words. foreign indus
trial countries, no longer pros
trated by World War II. are back
in business, equipped with eff
Gent factories and manned by
capable workers whose wages are
lower than those of American
workers and who are ready, able
and willing to put in q full days
work without featherbedding and
high-cost fringe benefits. They
can deliver the goods.
This is not the only reason why
we are meeting foreign compete
ton In third markets and even
in our own market In such things
as automobiles, steel, sewing ma
chimes. bicycles, clocks and
watches, textiles, machine tools.
fish, and many other products;
but it is an important reason.
Through the Marshall Plan and
other foreign-aid programs we
have helped equip foreign indus
try to compete with our own by
means of up-to-date American
made machinery and American
techniques and processes.
Not all our imports today are
a result of diminished competing
power on the part of our pro-
ducers. Some foreign specialties
like Scotch whisky and British
woolens have been coming here
for years. Textile imports from
Japan have long been trouble
some; but now our mills admit
they cannot compete with those
Of India and Hong Kong. as well.
In 1858 we imported some 416.-
900 foreign cars, not only because
they were produced with cheaper
labor than our own. but because
they catered to a market ignored
by Detroit's Big Three: the small
car market.
Such an old supporter of the
reciprocal trade program and for
eign aid as Walter Reuther of the
United Automobile Workers now
exhibits worry. OF foreign pro-
ducers of automobiles, textiles,
watches. shoes. and other goods,
the Detroit News quotes him as
saying:
Make them pay higher wages