The Trade Association as a Factor in Reconstruction

Abstract

ONE of the basic changes arising out of the war the world over has been the far-reaching control of industry by government. In our own country, the business man during the war has in a large measure had the conduct of his business taken from him through government control of raw materials, fuel, transportation, distribution, prices and capital. The heavy and sometimes clumsy hand of federal regulation has been felt by every manufacturer and tradesman. Competition in many industries has been paralyzed. The first step in reconstruction is the restoration of open and wholesome competitive conditions. In our own country, happily, economic and political thought in the main favors it and governmental action is already directed to that end. Industrial democracy giving to every man the opportunity to win business success on merit and efficiency is still to be the purpose of government regulation. Monopoly and combinations in restraint of trade are still taboo, not only for their inherent viciousness but because their inevitable effect when consciousness of power is increasing in the great groups of our citizenry is to lead to socialism. If industrial power becomes too greatly centralized, the people as the possessors of sovereignty,-as the last and ultimate authority, -will either exercise a control as heavy as that felt during the war or take possession for themselves. It is vitally to the interest of industry, therefore, that competition free, fair and unrestricted be reestablished. Just as the trade associations, through their war service committees, rendered invaluable service to the government and their industries during the period of government control, so now they can become a great and constructive factor in the maintenance of competition. Unfortunately the trade association of the past has concerned itself largely with such matters as control of prices, curtailment of production, or division of territory, and in so doing has run 159