with foreign competitors than with competitors in the United States. In foreign trade the necessity of concentration of capital and business methods is great. Live and well-posted representatives are sent abroad to build up a trade for a new industry, a particularly difficult task when the markets have been for decades in possession of foreign manufac turers. A great advantage of concentration of capital and control of the foreign market is the regulation of production by the manufacturers, thus preventing overbuilding and overproduction. Consequently enormous losses are prevented, as factories can run the entire season and not produce more goods than can be sold at a reasonable profit. Were America to prohibit bigness in business, her foreign competitors would quickly pass her in the race for markets. Coöperation is essential to twentieth century industrial success; to shackle the genius of this country, to limit individual freedom and initiative, would force us to the rear in the international contest for the world's business, by which means alone this country can continue on to that fruition of which there has heretofore been such ample promise. American manufacturers, or producers, selling to foreign buyers should be allowed to combine to protect themselves. In exchange for their products they should bring as much money as possible into this country, which would be an indica tion of our prosperity. America could not hold her own in the world's markets, were every large business concern doing a foreign business to be split into small units. In the rush of foreign competition the powerful is apt to overcome the weak; the $10,000,000 organization stands a slight chance of conquering a new continent, if a $100,000,000 combination is already in the field. Discrimination should be made between the form and extent of the control left for purposes of domestic trade and that of foreign commerce. Domestic corporations are under reasonable control. When, however, our citizens go abroad to conduct business with, or in, foreign countries, they come in contact with competitors whose methods cannot be controlled by American merchants. We should not hamper our own citizens by preventing them from so organizing as effectively to meet such foreign competition. The increase in the export of our manufactured goods brings satisfaction to the merchants, and a desire to take advantage of an improved position in the world's market. That this increase has come without encouragement of the Government, -when the Sherman Act is taken into consideration, and when the advantages bestowed upon our foreign competitors are taken into account,-only emphasizes the strength of the effort and the hope for its success. Business men are in doubt as to the validity of export associations under the Sherman Anti-Trust Act and as to how far export associations may be allowed to operate in a manner consistent with our duty to foreign trade and to ourselves. The purpose of export associations is to sell domestic commodities in the world's markets. The main object of the Sherman Act is to protect the citizens of the United States from monopoly prices and restraints in the trade and commerce of our own States, territories, and possessions. It seems that the Act, from a practical point of view, cannot reach out to the production and assembling of goods sent all over the world, though these processes be the results of a reasonable coöperation on the part of American manufacturers. The prohibitions of the Act should not affect the handling of our commodities in the world's markets, for we must meet trade conditions in foreign lands, over which the United States Government has no control. Acts that would restrain in our home market would not have this effect, if accomplished in producing or assembling our manufactured articles abroad. It seems practical and just that export associations may be so conducted as to withstand attacks in the courts, and a Federal Interstate Trade Commission, with proper authorization, could act as in an advisory capacity to export associations representing American business men. BRIEF REMARKS ON COMBINATIONS IN OTHER COUNTRIES The situation regarding Trusts in restraint of trade or commerce in other countries is too large to go into except in the briefest manner. ENGLAND Extensive combinations exist in nearly all lines of industry in the British Isles, on the grounds that free trade should give freedom to manufacturers to form combinations in order that they may compete with foreign merchants that may invade English territory. GERMANY Germany has hundreds of combinations, called "cartels," which operate to limit production, divide territory, and fix prices. That these cartels restrain trade is a well-known fact, yet they exist with the approval of the courts. Industrial combinations are not condemned, and cartel contracts are legalized at civil law. Legal steps are not instituted against this class of combination, but against the abuse of the powers of the alleged monopolies, and in consequence the public is fairly well protected. The prices of commodities are fixed by free competition, which is guaranteed by the government to be free, but there are restraints that prevent improper persons carrying on trade that is forbidden and inexcusable. There has been a great development of combinations in some form or other during recent years and these combinations are extending their operations, and new ones are being formed and developed. FRANCE The food laws are such as to prevent the fixing of prices, but other combinations exist with the approval of the courts, which prevent lowering of prices. The provisions of the civil law have frequently been applied to combinations by the courts, and they endeavor to ascertain if there is a monopoly exercising its power in a manner detrimental to the consumer. The French law forbids combinations that advance prices above a competitive level. AUSTRIA Agreements among merchants to fix prices and other restraints in trade and commerce are not allowed. The laws are less favorable to combinations than in Germany. The Austrian crim |