CHAPTER IIL.

GENERAL COMPETITIVE CONDITIONS IN INTERNATIONAL
TRADE. ’

SECTION 1. INTRODUCTION.

Some discussion of the competitive conditions of international
trade is necessary to understand the difficulties which confront
American producers in their export trade. The factors in international
 competition discussed in this chapter are transportation,
foreign banking and credit facilities, foreign investments, and the
industrial organization of the chief commercial nations. Other
important factors, such as costs of production, etc., are omitted on
account of the necessary limitations of this investigation. (See
p. 12.)

SECTION 2. TRANSPORTATION FACILITIES.

For the successful handling of foreign business a country needs
adequate transportation facilities. In this respect, as compared with
his European and Asiatic rivals, the American exporter is at a
distinct disadvantage. Other great commercial nations make special
use of their railways for the development of business overseas, and
foster their ocean shipping as an integral and vital part of their
foreign-trade policy. The United States, on the contrary, does not
to anything like the same degree make such use of its extensive
railway system, and has neglected its merchant marine until powerful
combinations of foreign shipowners determine the conditions under
which American imports and exports shall move in ocean traffic.
Although the Commission did not conduct any special investigation
of transportation conditions in the foreign commerce of the United
States, business men were insistent on the pressing importance of
the transportation problem and furnished a mass of information
thereon. They dwell on the efforts of foreign railways to extend
exports. They explain that their export trade lacks the stimulus
of American ships; that they must compete with foreign exporters
who have a decisive advantage in ship lines more or less directly
under their own control; that they suffer from slow and uncertain
sailings while their rivals enjoy fast and regular service; that

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