Show FiNISHED GOODS 1 IMPORTS NEEDED I European Manufacturers I Would Start Trade Circle By BENJ M. M ANDERSON JR Economist of the Chase National Bank Banko o of New York Before the war taking the the- world as asa asa asa a whole goods goody were by the large produced produced produced pro pro- in right proportions The war has broken this equilibrium Europe used to be the worlds world's great center for manufacturing and the worlds world's great market for foods and raw materials During the war and during our postwar boom Europe Europe Eu- Eu rope no longer producing in large quantity continued to to consume in great quality drawing in goods and finished manufactures on a great scale though ceasing ceasing- to draw in any any- thing like the normal amount of raw materials DISORDER COMES With the growing Inability of the outside world and particularly the United States to supply Europe with goods on credit In view of the gigantic gigan gigantic gigan- gigan tic debt already piled plIed up a great disorder disorder disorder dis dis- dis- dis I order came The situation was Immensely complicated complicated com com- I by the Inability of the raw I material countries the United States India South America and other parts of the non-European non world to dispose of their raw materials Unable to find an outlet in Europe the raw materials of the world were concentrated upon the United States Our manufacturing capacity EXpanded ex expanded expanded EX ex- though it had been by the war was wholly inadequate to take care of so great a mass of raw materials and there came a great collapse In raw material prices EUROPE FARMING European revival since the war has hasI I been more manifest in in than in manufacturing and in 1920 we weI I exported far less of foods to Europe Europe Europe Eu Eu- rope than we had been exporting InI in inthe inthe the years Immediately preceding The throwing back on our domestic I markets of a great volume of food pr products ducts broke broko the prices of foods also very violently With the break In price of foods and andraw andraw andraw raw materials the buying power of the producers was so greatly curtailed that they could not buy at prevailing prevailing prices anything like the volume of ot manufactured goods which ven even the red reduced ced manufacturing capacity of the world was turning out and there came a crisis for tho the manufacturer also CAUSE OF TROUBLE The trouble was not however overproduction over over- production Th The world is producing far less than it produced before the war in the aggregate The trouble Is maladjustment due to Europe's withdrawal withdrawal withdrawal with with- from her position as the worlds world's great producer of manufactures and andas andas andas as the worlds world's great market for tor foods and raw materials A really fundamental solution of ot the tho present business problems therefore must involve aiding Europe to get back upon her feet fe-et and to resume her place as the great manufacturing center REAL REMEDY There are many American who are apprehensive of European European European Eu Eu- competition and notably of German competition They are urging that high tariff barriers be erected to prevent the Influx of foreign goods But the most welcome thing that could come about the thing that would promise most for a real revival would be a real and vigorous Increase In imports to the United States of ot European European European Eu Eu- manufactures It would start the circle of trade going again |