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Show mm s ess m, I AND SMALL ifcesl BUSINESS fplfilf Jfe International C.O.D. Business I Some two years ago the continuous con-tinuous field surveys of the National Federation of Independent Inde-pendent Business showed that independent firms were in a precarious cash situation due to slow collections. This in turn, of course, resulted re-sulted in some not being able to get merchandise except on a C.O.D. basis, cash on delivery. Fortunately, the current data shows that situation vastly improved im-proved and apparently it was brought about by the firmness of the independent business people in cutting off credit to delinquent customers, while it probably meant a drop in sales volume, it did mean more cash in the register But today, the nation is faced with a somewhat similar situation situa-tion and It Is going to take some extraordinary procedures to solve this problem. Nobuhiko Ushiba. the Japanese Jap-anese ambassador to the United States has warned that Japan may have to at least temporarily temporar-ily cut off exporting to the United States. It is estimated that by the end of the year the trade Imbalance Im-balance between Japan and the United States will total $4 billion. This is a situation the Japanese feel cannot continue. In other words, they are saying say-ing that while the United States is a good customer for them, could we now please have some payment on your account? Of course, one way would be for the United States to sell more of its products to Japan. But actually, there is a built-in handicap in the American system sys-tem when this is considered. While the inability of the United States to sell more abroad is charged a great deal to lack of productivity, and the high labor rate of pay in the U.S., this is perhaps not the entire answer. American goods must compete com-pete to some degree on price, and when that price Is continually contin-ually jacked up by taxes, there seems little hope. In January, due to the steep jump in the payroll taxes that American employers must pay for Social Security, the odds are that American made goods will be even less competitive in world markets than now. Of course, labor leaders keep demanding higher tariffs to stop the flow of imported goods, to create more jobs for Americans. But at the same time, this can also have the result in cutting down American exports which also reduces American jobs. For many years labor leaders have been in the forefront demanding de-manding more Social Security, more medical care, and other so-called social benefits. But perhaps they should re-evaluate their positions In the light of the jobs that have been lost due to American goods being over-priced. It would not help the American economy if Japan and other nations put the United States on a C.O.D. basis. g National Federntion of Independent Business " |