There was an increase in exports in 1936 due to the favorable tariff treatment accorded books under the United States-Canadian Trade Agreement which then became effective, but even with this help the amount is far below the 1929 figure. In 1929 the value of our books, including pamphlets, exported to Canada was $7,018,894. In 1935 it was $1,628,504, and with the help of the new agreement in 1936 it rose but a trifle to $1,768,496.

French is the
Official pub-

Canada has a population (1931 census) of about 101⁄2 million. common language of 24 million and English of less than 6 million. lications of the Dominion Government are largely in French and English. The entire English-speaking population of Canada is less than that of the city of New York.

These figures demonstrate clearly that the Canadian market is of such character that we need not be concerned therewith insofar as the questions under consideration pertain thereto.

The answer to the Canadian threat may be fouud in a new all-American treaty or in the protective tariff, if such protection is needed. One hears very little about any untoward effects of existing conditions. The fact is that the State Department has just given notice of a proposed pact with Canada. Let the publishers move promptly to remove the "threat" under provisions to be inserted in that pact. There is nothing in the Canadian market to justify the elimination of the manufacturing clause from the copyright law.

This threat of lower prices in Canada is a bugaboo that is slightly more ephemeral than a manufacturer's profits.

Now, let us look at Great Britain from whence will come the great influx of English language books when the treaty is signed, the pact completed, or S. 7 enacted.

First, we will analyze statements of titles published in Great Britain and Ireland during the years 1936 and 1937 as compared with similar classes of titles published in the United States (figures from The Publishers' Weekly, January 15 and 22, 1938).

There we have something to play with: 1936, Great Britain, 16,572 titles, United States, 10,436 titles; 1937, Great Britain, 17,286 titles, United States, 10,912 titles. (United States figures do not include pamphlets.)

Let's go a step further. You have heretofore been informed by us of the proposed trade pact with the United Kingdom. On page 33 of the "List of products on which the United States will consider granting concessions to the United Kingdom, Newfoundland, and the British Colonial Empire" we find these items:

Unbound books of all kinds, bound books of all kinds except those bound wholly or in part in leather, sheets or printed pages of books bound wholly or in part in leather, pamphlets, music in books or sheets, and printed matter, all the foregoing not specially provided for (except unbound or bound prayer books and sheets or printed pages of prayer books):

If of bona fide foreign authorship.
All other

-percent__
do....

Blank books, slate books, engravings, maps, and charts (except diaries, notebooks, and address books) percent__

30

Book bindings or covers wholly or in part of leather, not specially provided for_.. -percent__ The entire 17,000 English titles, if the pact is signed, will be eligible to free importation and competition with our own 10,000 titles.

It requires no argument to realize that with manufacturing costs much lower abroad, and quality of work improving, a number of our own titles would be taken abroad for manufacture and brought back completely protected with no tariff hindrance unless we can manage to defeat ratification of the copyright treaty and Senate bili 7 and take books and printed matter out of the proposed pact.

If this pact is signed, and it will be, it may very well be that the existing tariff on books, etc., will be removed in whole or in part, so give up any idea that the tariff laws will protect the industry. Remember that Mr. Hull, our Secretary of State, is a great believer in these free-trade agreements and his outlook on international relations is not favorable to protective tariffs. We now have 16 trade pacts in effect and most, if not all, include the favored-nation clause whereby any concessions made to one nation automatically become available to the others.

It is one thing to talk about Great Britain having approximately 7,000 more titles in 1937 than the United States, but let us look at some Government figures as to the dollar value of the volume involved in exports and imports.

In 1936 the United States imported from the United Kingdom (dutiable and nondutiable) books, maps, music, etc., 20 years old, to the value of $770,000, other books and printed matter $2,914,000. But in 1929 the figures were $3,414,000 and $8,493,000 respectively. England wants to regain her export business to the United States. She has the capacity to produce acceptable books to a far greater extent than she is now doing. Forget not that these overseas brethren are slick traders, their statesmen and diplomats are farsighted. They need our markets.

On the other side of the picture, the total exportation of books, maps, pictures, and other printed matter, from the United States to the United Kingdom in 1936 was valued at $2,907,000 and only $3,920,000 in 1929.

It does not require deep mental effort to realize that labor and the manufacturers in the United States will not be the gainers by the elimination of the manufacturing clause.

Mr. A says, "The United States has gained over England in exports to Canada, and our exports to England have increased." The above authentic figures show a very substantial decrease in exports to England of over $1,000,000 since 1929. Suppose that England does export more books to Canada than we do. We have shown the situation in Canada and its possibilities. Let us not jeopardize our own market at home for a will-of-the-wisp affair in Canada or elsewhere.

In view of the above, it is slightly more than interesting to note what may be expected in the way of competition if we let the bars down as to tariff and copyright. Our own Government report (Department of Commerce) has this to say of the increased efficiency of book manufacturing in other countries-mostly substandard as to wages and living conditions:

Japan: "Foreign modes of printing technique were eagerly adopted. * * * There is abundant evidence at the present that Japanese printers are doing excellent color work for commercial use, that books published in the English language are beginning to compare favorably with those produced in Europe and the United States and that Japan has a graphic arts industry featured by the latest technique and equipment, relatively high quality output, and remarkably low prices."

Germany: "In 1936 the export of books amounted to 23,298,000 reichsmarks and the imports to 7,251,000, or 21.1 of the amount of exports. Normally, the United States holds fourth place in imports from Germany, and sixth place in exports to that country. German book exports to the United States in 1936 were valued at 1,809,000 reichsmarks and her imports from this country at 229,000 reichsmarks."

France: The imports by France from the United States are negligible but she exported to the United States in 1936 books to the extent of 1799 in metric quintals or about 200 tons.

Belgium: "Because of the low cost of living in Belgium and the resultant index of production charges, foreign firms have frequently resorted to Belgian publishing houses for the printing of books, periodicals, and editions of music. In 1935 the foreign orders drove the export of books higher than the import.

"In 1936 her imports from the United States were of no moment, but the exports were valued at 2,002,000 francs."

Sweden: "Books published in this country are generally high in quality of printing and paper. The foreign trade is substantial as to imports but 'the United States is an unimportant supplier of books.' The imports from the United States in 1936 amounted to 29,564 crowns as against exports to the United States in the same year of 59,258 crowns.

You noticed that Mr. "A" spoke of the coming possibilities in the markets of the far distant lands of Australia, New Zealand and South Africa. We will look at that picture but before doing so let me say that it does seem strange that the American publisher should be so concerned about the small markets for books of local origin in Australia, New Zealand, and South Africa when publishers have not scratched the surface of their domestic market. How green the other fellow's grass doth appear: And then if we are going into the union on the plea of ethics and idealism, why talk about such mundane advantages as increased exports? When we look at the trade in these far away countries, we find that the industry is so developed there that our export possibilities to such countries are not very bright.

Australia: Practically all textbooks used in grammer and high schools are produced in the country. The imports from the United States equalled £77,530 in 1936, of which about 75 percent were periodicals. Practically all of its books are of British origin. There is no duty on such imports at the time, so the trade pact and the copyright law will not assist us in Australia. It is a practice for American publishers to sell the Empire rights to British publishers, and the British editions are usually less in price than American editions.

New Zealand: Here the graphic arts industry is highly developed, employing 10.6 percent of the workers, and paying 11.9 percent of the wages. The book manufacturing end of the business is in its infancy, but every printing establishment in the country is engaged to some extent in printing books. The great bulk of books sold are imported. The total import value in 1936 was New Zealand £518,018, of which the United States furnished New Zealand £54,672 worth (about 10 percent with 72 percent from Great Britain, New Zealand £373,104, and Australia 16 percent or New Zealand £83,140. Many books by American writers have a market in this country, but the bulk are manufactured in English houses due to lower printing cost. "There is no tariff discrimination against American books. Books from other countries are admitted duty free except for a primage tax of 3 percent ad valorem.”

South Africa: The art is in "a high state of development and most printing processes used in other parts of the world can now be satisfactorily done in South Africa." Most books are presently imported chiefly from the United Kingdom, with the United States as a poor second. The value of imports of books, music, newspaper, etc. (figures are not available for books alone) in 1935 from the United Kingdom was £383,677; and from the United States £25,391.

The market abroad is absolutely insignificant compared with the potential possibilities at home. The records not only fail to disclose any possible good which may result to American manufacturers from export trade, but on the other hand disclose a positive threat to our own market by reason of importation from low wage, cheap production centers.

In the United States, during 1935, there were 22,606 establishments engaged in printing, publishing, and allied industries, affording employment to 475,123 persons, with a production output value of $2,164,995,207. As above stated, the total annual exports from the graphic-arts industry amounted to a very smalĺ percentage of the entire production; in fact, to only an average of $17,000,000 per annum during the years 1934, 1935, and 1936.

It was estimated that the total 1934 net sales of the edition book manufacturing portion of the graphic-arts industry exceeded $30,000,000, with mechanical pay rolls involved to the extent of $13,435,000 and approximately 12,600 persons were engaged under the heading of "Mechanical employees."

It is this industry that is threatened directly by the proposals here under discussion and we submit that there has been no demonstration in connection with the above bill, treaty or pact, of such benefits to any other comparable group as will justify the harm which must be occasioned the book manufacturing industry if affirmative action is taken on the proposals.

Insofar as the graphic arts is affected the proposals will not be of benefit. We believe they will be a decided detriment.

We do not agree with the quoted statement supra (page 6) that "the printers would make great gains (because) the proposed drafts for revision provide that unless the American publisher shall manufacture his edition in this country, he will not be protected at the customhouse from importations through other agencies. That is, although an English author has a copyright here, his American representative is forced to manufacture here in order to have protection from competition." The proposed draft is Senate bill 7. Read section 15 supra. Not a thing is stated about "the American publisher" being obliged to manufacture his edition in this country or that the American representative of an English publisher is forced to manufacture here in order to get protection. It merely says, "that all copies of any copyright material created by a citizen of the United States * * * shall be printed from type set within the limits of the United States, etc." This is vastly different from our friend's construction.

Then look at section 31 as proposed:

"Sec. 31. That during the existence of copyright under this Act in any book in the English language, when an authorized edition thereof shall have been produced, or shall be in process of production, in accordance with the provisions of section 15 of this Act, as amended, irrespective of whether compliance with those provisions was essential to obtain copyright for the work under this Act, the importation into the United States of any copies of such book not so produced (although authorized by the author or proprietor) or any plates of the same not made from type set within the limits of the United States shall be, and is hereby, prohibited: * * *” How simple it will be to evade these provisions and manufacture abroad. Note too that while the proposed manufacturing clause is limited "to any copyright material created by a citizen of the United States," the copyright protection extends to the work of all authors or proprietors who are citizens or subjects of any foreign country party to the convention and to any alien author or proprietor who is domiciled within the United States at the time of the creation or first publication of the work and to others whose countries have reciprocal agreements with the United States. These aliens so domiciled in the United States would not have to manufacture their works appearing in English or foreign languages, in the United States.

We could go on adding argument upon argument, but what's the use?

It may well be that the present law does need some strengthening to cover further protection to the American manufacturer and publisher. It does not need weakening or complete impairment. We would applaud an effort to enable our publishers to bring to this country an experimental edition of a limited number of copies to test the market but we fail to see the wisdom of throwing American labor and manufacturers into the suppressive competition of countries whose standards are definitely lower from every angle. We understood the aim of our economy to be heightening in all of its aspects. Then why subject the industry and its employees to competition from Japanese and nationals of other substandard industrial countries?

It is obvious to all but those who do not want to see that the proposed treatythe proposed pact, insofar as it pertains to books and printed matter and Senate bill 7 are detrimental to the book-manufacturing industry.

We suggest that you consider the matter and if you agree with us, that you protest each proposal.

Ratification of the treaty thus placing the United States in the International Copyright Union means the elimination of the present manufacturing clause.

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