Mr. Schwab Suggests

Addressing the British Chamber of Commerce, Charles M. Schwab advocated increased cooperation in the international steel trade, and suggested that steel-producing nations serve the nearest territories by a system of mutual allocation, and thus avoid cut-throat and ruinous competition. This radical suggestion was apparently made from his fears of future German competition, based upon superior efficiency and lower wages. His " world pool " in steel would include particularly England, France and this country.

After-dinner speeches are rarely an important source of business policies, and must not be judged too severely. Nevertheless, the American press commented upon Mr. Schwab's plan somewhat criticially. The general quarrel with Mr. Schwab is that 1) a system of pooling business could not be established within this country, let alone internationally, and 2) Germany must export steel and steel products if she is ever to pay her indemnity.