REPLIES TO CARD AND SOHEDULE INQUIRIES, 423
ciation in Germany, a permission which seems to have been refused.
The penalty for buying outside of the combine is the cancellation of
a bonus distributed from time to time among the members.
FURTHER STATEMENTS CONCERNING COMPETITIVE CONDITIONS
AND ADDITIONAL SUGGESTIONS FOR DEVELOPING FOREIGN

[ Manufacturers’ schedule, questions 7 and 11; exporters’ schedule, questions
7 and 10: other schedules, question 9.)

In the schedules sent to manufacturers and producers, and to export
 commission merchants, export brokers, etc., the following question
 was asked:
Have you any further suggestions as to what is needed to help you develop
foreign trade?
All of the schedules requested the following information:

Please give briefly any specific information you may have concerning any
other competitive conditions abroad affecting the export business to particular
markets, such as investments of foreign capital in local industries, the employment
 of foreign managers or engineers in local enterprises, concessions to
foreign syndicates or capitalists. discrimination in banking or transportation
facilities. the activities of foreign Governments. ete.

The difference between the two questions quoted above is that the
first is personal, information being desired as to what is needed by
each manufacturer or exporter individually, and what in his opinion
would be beneficial in improving his foreign trade, while the other is
general and relates to any definite information as to what has enabled
oreign concerns to build up their export trade.
A. NEED oF BANKING FACILITIES ABROAD.

The majonity of those answering the above questions seem to think
that the most necessary Soveloprionis should be in our banking
facilities abroad. On account of the many branch banks of foreign
countries, closely allied to the different industries of those countries
and located in the markets where they are seeking to prcmote trade,
it is‘ possible for them, notably those of Germany, to give long
credits—sometimes as long as a year. 'For the reason that our manufacturers
 pay a higher rate of wages and are used to a quick turnover
 of their capital invested, also on account of a large amount of
loss caused by extending long credits, many feel that it does not pay
to engage in foreign trade.
Concerning the need for the development of American banking
facilities abroad, a large manufacturer and exporter writes: “ We
always find our foreign competitors in neutral markets haying a decided
 advantage on account of their banking connections.” This is
a typical reply of those who understand this businzss handicap, but
apparently do not understand how the means for overcoming it can
be developed.
While many merely make the bare statement that American branch
banks a are needed, there are others who go into the subject
in a more detailed way.
Long credits necessary—A New York exporter replies that—
The question of credits is the most important of all items. The markets that
need our goods the most are as a rule the ones that are short of cash. They