The Washington herald., 1917-10-29
IMPORTS SHOW
TRADE INCREASE
Holland Reveals that Bulk
of Commodities Bought
Are Raw Materials.

tistics recently published are those
which report the money value OF the
imports into the United States IN
twelve months. These imports VIII
offset by considerably more than
billion dollars our exports to foreign
countries. That, however, Is not re-
garded as the most important feature
associated with these figures. For the
commodities imported of themselves
tell a story of the speeding up OF
American industries. Comparatively
few luxuries were imported. The
Jewellers and dealers in precious stones
have not imported as heavily as they
have done occasionally in other years
The great bulk of the commodities Is
made up Of various raw materials or
what is commonly known as raw ma
terials.
Abram s. Hewitt used to say that
there IL no raw material excepting
that which lies undeveloped or unex-
plotted in the soil or in the timber
lands. All material commonly called
raw. Mr.. Hewitt said, represents Ia
bor and investment of capital. where
pv an output can be secured. iron
ore. for instance, with which MT.
Hewitt was very familiar as a com
mercial commodity, Is commonly eall-
ed a raw material, yet the minute II
Il taken from the mines and when on
the way 20 delivery to the furnaces 1t
renresents labor and investment OF
capital and the cost OF transportation.
Raw Materials Needed.
L.. the common understanding OF
the term raw material is that 1t
represents commodities which are
needed for manufacturing or other
Industrial purposes. 1t is raw so lar
a. the industries are concerned. 80
Greatly have our Industries been
speeded up and so large is the do
nestle as well as the abnormal war
demand that Il has been necessary
to secure abundant supplies of mate
rial not obtainable in the United
States needed for manufacturing pur-
poses.
That there should have been bought
within the past twelve months oy
American manufacturers and import
ed from foreign countries commodi-
ties of the approximate value of
billion dollars is one of the best eyi-
deuces OF the fact that industries are
being occupied to their capacity, not
merely for war purposes, but also 10
meet the demands OF the domestic
market. Should the war continue an
other year IL is probable that imports
OF the money value Of at least Dill
lion dollars, considerably more, VIII
be brought to the United States
chiefly for manufacturing purposes
The Balance of Trade.
Occasionally reference is made to the
fact that the magnitude OF our ex-
norris especially within the past two
years and presumably for two or three
wears more, will raise by and by a
a serious problem for other nations
to solve. II the nations can increase
. their exports to the United states
these will serve partially TO offset our
exports to other nations. But in any
event the balance of trade in favor
\ Of the United States at present and
as il is likely to be for several years
is and is to be so large that some
convenient arrangements must be
made for the payment of balances.
Englans, for instance, cannot hquidate
her enormous purchases in the United
states by selling American securities
because the amount OF these securities
has been greatly reduced. Some who
opinion that the debt We owed to
citizens across the sea when the Eu-
ropeen war began, probably as much
as five million dollars, has been
almost wiped out
Some have said that England and
France will attempt to liquldate the
trade balance in our favor when the
war ends by flooding american mar
kets with commodities manufactured
in those countries. But the best
opinion seems to be that England
and France viii be chiefly occupied
for some years in rebuilding their
Industries although, notwithstanding
the enormous drain upon the financial
strength of England, her manufac-
turers have so far been able to main
tain q surprisingly large foreign
trade.
Then again, the nations that have
been borrowing large amounts from
the United States must liquidate this
indebtedness and TO do that will in
volve skilful and very great inter-
national agreements. Already the
!. Federal government has advanced to
Aour allies across the sea an amount
of money considerably in excess Of
the aggregate of the First Liberty
ever. has remained in the United
States, having been used to pay for
commodities which have been bought
here But the debt still remains and
p, there is no conceivable international
trade which our allies may secure
yithing the next five or ten years
great enough to liquidate this in
debtedness.
The American Hemisphere.
One Of the results of the war ap-
parently is TO be the domination so far
as markets are concerned of the
American hemisphere by the United
States. We are to maintain a great
trade with Canada which is likely to
be increased, for Canada will have
need Of our commodities in order to
repair the damage which the war has
caused. South America is apparently
lost to Germany. Every day there
come to New York communications
from South America or from repre-
sentatiyes OF South American nations
who are now here which justify the
belief that the enormous increase in
our trade With South America, and
especially in oonmodities which be-
wfore the war England and Germany
~chiefiy marketed in South America,
will remain with US after the war is
ended.
England may after time regain
some part of her commercial prestige
in South America, but many years
will be required before Germany can
find such markets in South America
as her manufacturers secured within
ten or fifteen years before the Euro
pean war began. Therefore, it is as
Nsumed that one OF the effects Of the
war which will be observed after
peace comes will he the dennnstra-