THE H.B. TRIBUNE. FRIDAY, MARCH 14, 1913. COMPETITION FROM AMERICA

Hawke's Bay Tribune, Volume III, Issue 77, 14 March 1913, Page 4

THE H.B. TRIBUNE. FRIDAY, MARCH 14, 1913. COMPETITION FROM AMERICA

British writers on commercial subjects are beginning to look for the prospective results which may be expected to follow upon the revision of the American import duty tariff which has been promised by the new President. In some quarters it is suggested that the removal, or substantial reduction, of the present almost prohibitive protective rates may have a hithero unforseen consequence in the form of competition by American manufacturers in markets which have in the past looked io Europe for their supplies. In support of this theory, it is pointed out that the heavy duties imposed by the United States, with the primary object of fostering young industries by practically excluding foreign competition, enabled the American pioneers in such branches of commercial enterprise to put out their products at such prices as to secure a very broad margin of profit. Their success, however, has of later years induced so large a hodv of manufacturers to enter the lists that in many lines there has come to be a considerable overproduction so far as consumption within the States is concerned. Even as it is, with retaliatory heavy tariffs against American goods, there is a very appreciable volume of American manufactures which finds its way into foreign markets. We ourselves have seen, in a small way, how rapidly the importation of American boots was growing in New Zealand until it was checked by the imposition of a surtax in favour of goods of British manufacture. The boots and shoes which came to us from America represented merely a small portion of its over-production, for which it was glad to find an outlet even at prices less than those charged within its own boundaries. This was part of the scheme of the combination of manufacturers to ki.'"p up prices in the States to the abnormal level which high prctec-

live duties had enabled them to establish. Every year, however, the competition has been becoming keener as new houses entered into

business, and although in many lines combination for the accustomed high prices has been preserved, in others there has been a distinct ten-

dency towards independent action. The very failurfe of some of the more ambitious of the new competitors has had ah effect which would not be at first anticipated, inasmuch as the ever-waiting bargain-hunter has

been enabled to acquire factories and equipments at prices a long way below their cost and below their actual value, assuming the existence of work for them to do. With the piospccl in view of an international adjustment of icciprocal tariffs, it cm be easily understood that the I United States may very soon take I thf-i’’ place among the exporters of classes of goods for which they have hitherto looked almost exclusivel., t<> their own population for buyeis. ft is suggested that Mr. Woodrow 'Alison is receii ina, from quite un expected quarters strong support for his policv of import duties for revenue purposes, a modification which, it is hoped, may open many doors to American goods. Having reaped a rich harie'r under protci tioii, ilie American manufacture.bfgms to see that ii has s mul irs purpose and to j-cab-e that some meaure of free trade may best sun. his future interests. Of ail the American manufactures of goods of world-wide use none has perhaps made so strong a place as t iia ( of woollen goods. ith practically the monopoly of the requirements of ninety millions of people

to supplv. the woollen factories ot the Slal< shave grown rapidly m number, capacity and efficiency. It can therefore well be conceived that v. hen the duties on the raw material are relaxed. America, with its Comparatively low rate of wages for manual labour, will have every hope of competing successfully with the older countries. How this may affect the prosperity of our own woollen factories' it is perhaps a little difiienlt to predict. But that, by giving the American manufacturers a wider field of operation, it will

stimulate to larger purchases of our raw material seems almost certain. Our latest mail reports on the London sales intimate that American buyers have been strongly in evidence, and it may be safely as-

sumed that, as soon as the reduced tariff is actually established, their operations will still further expand. Hoarser grades of wool than those to which they have hitherto practically confined their attention will begin to find acceptance among them, and so create a new element of competition which must make for improvement especially in our local sales.