374 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE,

The need of such concerted action is clearer when the character
of the export trade of the United States is understood. Under normal
conditions about two-thirds of its exports have been foodstuffs and
materials for use in manufacturing—such commodities as grain,
flour, meats, cotton, copper, oil, coal, etc., and one-third of its exports
 have been manufactured articles ready for use, such as machinery
 of all kinds, electrical goods, automobiles, boots and shoes, wearing
apparel, cloths, medicines, drugs, paints, varnishes, etc.
The marketing of these two broad classes of products in foreign
trade present very different problems. Many foodstuffs and materials
 for manufacture, such as grain, copper, cotton, etc., will sell
themselves at some price, usually at a price broadly established in
competitive world markets. Developing export business in these
commodities is comparatively simple. There is often no need of
creating a demand. With this class of goods the problem is partly
one of obtaining a more efficient system of selling, and partly one of
protecting our producers against combinations of foreign buyers.
At present, one of the most practicable means for obtaining these
results is cooperation among American producers.
In the case of finished manufactured articles, the problem is generally
 more difficult. In these factory products, both staple und
special, the manufacturer must often create the demand for his
particular goods. While it is not to be forgotten that cheapness and
quality of product are necessary, organization for selling is also
essential.
To the producer of specialties, however, cooperation in export
trade does not offersuch great advantages as to the producer of staples.
Absence of standardization is in the way of its effective working and
the field of foreign markets is far more open and free to specialties
than to staples. In some lines American concerns making specialties
have established their products in a world-wide way and are ahead
of competitors from other countries. While, therefore, producers of
specialties have to create their own market, many of them feel that
they can do this to better advantage individually. Some of those
who have not yet established themselves in all their markets, or who
are but beginning their campaigns, favor cooperation, but what they
wish is cooperation with manufacturers of allied lines rather than
with competitors.
To the producer of staples, the foreign manufacturer or combination
 making the same line offers the most determined competition.
To establish the American goods requires strong, practical selling
campaigns. Not only must the customer be persuaded to prefer
the American manufacture, but the sales must often be supplemented
by the establishment of local warehouses that will insure a prompt
supply, and the customer must be given ample assurance that he can