208
T H E J O C R N A L O F I A T D r S T R I A L A-I’D E S G I S E E R I Y G C H E M I S T R Y
v01. 8, NO. 3
EDITORIALS SPRING MEETING OF AMERICAN CHEMICAL SOCIETY T h e Fifty-Second X e e t i n g of t h e American Chemical Society will b e held at t h e University of Illinois, Urb a n a - C h a m p a i g n , f r o m Tuesda y j April r 8 t h , t o Frid a y . April 2 1st. inclusive. T h e Beardsley H o t e l , C h a m p a i g n , h a s been chosen a s h e a d q u a r t e r s ; all meetings will b e h e l d a t t h e University of Illinois. T h e provisional p r o g r a m . p r i n t e d elsewhere i n t h i s issue. includes as a special f e a t u r e t h e dedication of t h e n e w c h e m i s t r y building University of Illinois. w h e n addresses d l be m a d e b y Governor E d w a r d J. D u n n e of Illinois, President E d m u n d J. J a m e s , University of Illinois, W. R. W h i t n e y of t h e U. S. S a l - a l B o a r d , a n d Professor Alexander S m i t h of C o l u m b i a University. T h e public lectures will b e on t h e “ P r o d u c t i o n a n d Use of R a d i u m , ” by C. L. P a r s o n s of t h e U. S. B u r e a u of N i n e s , a n d D r . C. F. B u r n h a m of Baltimore. X special excursion h a s been a r r a n g e d to Danville, Illinois, Tvhere t h e following will b e visited: Hegeler Brothers’ Zinc S m e l t e r a n d Sulfuric Acid P l a n t , W e s t e r n Brick C o m p a n y ’ s Kilns, T h r e e Rivers Coal C o m p a n y ’ s S t r i p Coal Mine. COOPERATION IN FOREIGN TRADE
An address b y Joseph E . Davies, C h a i r m a n of t h e F e d e r a l T r a d e Commission, before t h e N a t i o n a l Foreign T r a d e Council, a t S e w Orleans, discusses t h e epochal opportunities t h a t now confront American business i n foreign t r a d e , which h a s s u d d e n l y become a large f a c t o r i n o u r n a t i o n a l outlook. M r . Davies s u m m a r i z e s t h e general problems conn e c t e d w i t h t h e d e v e l o p m e n t of foreign t r a d e a s follows : p r o d u c t i o n , shipping, b a n k i n g a n d credit facilit i e s , creation of m a r k e t s a n d meeting of i n t e r n a t i o n a l competition. Eighty-five per c e n t of t h e t h o u s a n d s of replies t h a t t h e T r a d e Commission h a s received f r o m a quest i o n n a i r e directed t o t h e business m e n of t h e U n i t e d S t a t e s disclose a d e m a n d for permission t o cooperate i n foreign t r a d e , u n d e r F e d e r a l regulation. Conditions of foreign c o m p e t i t i o n which existed i n t h e world’s m a r k e t s prior t o t h e w a r a r e illustrated b y t y p i c a l ‘examples of t h e effectiveness a n d compreh e n s i v e c h a r a c t e r of foreign m e t h o d s : ‘ I A 4 combination of non-competing manufacturing plants of Great Britain, for instance, are equipped to establish, and have established, joint selling agencies, with branch offices and warehouses, and with such effective organizations that they are equipped to handle any kind of service within their lines, from the sale of a handsaw to the building of a railroad. “Much of the oriental business of Germany, is alleged to have been acquired through so-called rings, * * * * The markets are scientifically studied and assiduously cultivated. I n one of these rings, 48 different German manufacturers participated. Its organization with the local bank and home bank connections was complete. It had within its organization facilities for selling t o a Chinaman a five cent file, or for planning, financing, and completing the industrial development of an entire province, opening harbors, building railways and telegraph lines, sinking mines, erecting factories, installing light and power plants, and even to clothing the people and marketing of products, * L 3; 3; * * “Prior to the war, in Germany, approximately 600 cartels or manufacturing and selling syndicates, of a high degree of integration in industry and capacity, were projecting their activities
into foreign markets. It is generally recognized that a t the same time there were approximately 130 international cartels of a similar character; and i t may occasion surprise to know that the control of a smelting and refining plant in Colorado was owned by such a little known international organization. ‘‘-4t the University of Kiel there has existed, and does now exist, an institute for the study of world trade, subsidized by the Imperial Govmment of Germany, and organized with a corps of highly trained economists. In Turkey, during the last several years, a German trade paper has been published daily in both French and German. “The Imperial Government of Japan has projected its enterprise into foreign countries, with its government monopolies of salt, camphor, and tobacco. In Chosen, which is a new name for Korea, it is significant that there has been established an institute fcr the development of native Japanese chemical and industrial engineers. I t is generally recognized that exporting and marketing Japanese firms threaten the complete domination of the Chinese trade. “These manifestations of activity in Europe and in the Orient are indicative of the kind and character of competition that will be met in foreign trade in the future. Subsequent to the war these conditions will be emphasized and activities will be intensified by the spur of economic necessity in some of the nations of Europe. Under conditions such as these, the embarkation of -4merican enterprise into foreign trade and the maintenance of its rightful place there, will require the strongest initiative and the highest order of business intelligence.” T w o - t h i r d s of o u r exports consist of foodstuffs a n d materials t o be used i n m a n u f a c t u r e a b r o a d ; these practically sell themselves, so t h a t here o u r m a i n p r o b l e m is t h a t of conserving tliese n a t u r a l resources. “The remaining one-third of our exports are manufactured articles, and consist generally of two classes-specialties and staples. Here demand must be created; and foreign competition must be met. In specialties, the demand is largely created and the competition met through the popular character of the product. In staples, which constitute the large bulk of international trade in manufactured goods, the condition differs. The development of the demand is difficult, and the competition to be met most severe. * * * * * “Relatively few of the larger organizations of the country manifest a desire to enter into extensive cooperation in foreign trade. They do not seem t o feel the need of cooperative effort, because of their ability and capacity to project their own enterprises. In that connection i t may be said, with some reservation, that a very substantial part of our foreign trade has been developed through large organizations of this character. This development of our foreign trade is characterized by the fact that the ownership and management of plants reside in a single corporation, and is in distinct contrast in the manner in which the foreign trade of some European countries has been developed, where similar results have been obtained through the syndicated relations of smaller manufacturers who retain the individual ownership and individual control of their respective plants.” T h e d e m a n d for cooperation comes especially f r o m t h e m a n u f a c t u r e r of staples. In m a n y lines of m a n u f a c t u r e i t is impossible f o r a small concern t o engage directly i n foreign enterprise: cost is prohibitive, risk is t o o g r e a t , warehousing a n d credit facilities a r e individually impossible. T h e census t a k e n b y t h e Federal T r a d e Commission discloses t h a t misapprehension a s t o t h e application of t h e a n t i - t r u s t laws t o foreign commerce, a n d d o u b t a s t o t h e legality of s u c h enterprise i n t h e foreign fields a m o u n t e d i n m a n y instances t o a prohibition of a n y action i n t h e foreign m a r k e t . “It is the opinion of the Federal Trade Commission that enterprise in foreign trade should not be impeded by conditions of this kind. In the absence of injury to any American interest a greater degree of cooperation in export trade than is allowed in domestic trade may be beneficial to the country. If this is not now permitted by law, new legislation, to that end, properly safeguarding the public interest, should be enacted.”
