Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1917-02-06
WAR EFFECT ON EXPORT TRADE
Nation Paying Penalty For Failure to
Build Up lts Merchant Marine.

Build Up Its Merchane marine.
New York, Feb. 6.--Leading export
ers are already considering the prob
able effect Of the difficulty with Ger
many on the export trade.
II is recognized that even II the diff
ficulty becomes no more marked. In
creased submarine activity calculated
to starve Great Britain vii! necessarily
limit our trade with the allies and q
smaller volume Of trade with Europe
is looked on as imminent unless the
submarine peril Is terminated or re-
duced.
On the other hand it is thought
likely that our trade with Latin Amer
lea and the orient may Increase. In
surance rates for travel In the safer
waters will be lower. and neutral ves-
sells. already obtaining record freight
tariffs, may be in favor Of plying In
these waters.
This would tend to afford preferen-
tial freight rates for American shippers
and thus advance our exporting busi-
ness In this PORTABLE field which con-
sumes our peace time product rather
than the output Of companies which
are likely to witness much poorer
times after the great war.
The overjoyous have been calling
attention to the great increase in our
trade with South America pointing
out that whereas in eleven months OF
1914 we sold only s85,000,000 worth of
goods there, We sold $l97. 900. 900 worth
in the same period Of 1916. SO far the
showing is good. But it must be re-
membered that the balance of trade
has always been the wrong way, and
whereas In 1914 we had South
American balance against us of $137.-
900. 900. the next year 1t rose to $3.50,
OO0, 900, and this year to $1S6,00o.0Oo.
This Is not SO favorable. 1t has
meant that to make up the difference
we had to ship gold In increasing
Quantities.
But England has not approved that,
and a little time ago Great Britain
forbade her risk companies extending
insurance ON gold cargoes. This meant
that our banks had to obtain insurance
from the sman American firms, which
by pooling their resources have been
able to insure only $750,00o in gold per
cargo.
Consequently the American banks
have been able to send only a tenth as
much gold as they would like to send
and a search Of the water front no"
will find insurance even scarcer tha1,
cargo space, which Is surely scarce
enough.
The country Is face to face with the
nanalty for it's neglect in building w
merchant marine and marine insur.
ance service.
when American exchange in Monte
vIdeo is so poor that the Uruguay peso
is worth s1.O54 American gold, 1t is
good business to ship gold to Monte
video. exactly as when New York eX-
change In Chicago reaches certain
premium it is good business to shis
currency by express. .. .,
Yet the Uruguay peso Is now worth
about s1.os, and has been as high al
s.11 and tho American banks. with
more gold In their vaults than they
ever saw before, are unable to remedy
the situation because they can shiE
only in driblets Of s75o,0oo per ship.
The situation in the orient Is not
much better, for while our exports
have risen nearly threefo!d, our im'
ports have Increased Just about as
much, and there continues an enor'
nous balance Of trade against us nnt
in favor Of Japan. principally. III
oceania our favorable balance ha:
been reduced. In Africa our favorable
balance has been transformed to ar
urfavorab1y balance.
In other words, 1t Is vitaiiy impor'
tant for the United States to Improve
its export business. Huge as has beer