The Washington herald., 1919-05-28
AMERICAN TRADE.
JUMPS SKYWARD.
Phenomenal Increase in
Last Few Months Dis
cussed by Holland.

later, of the unsurpassed interna-
tional trade for February. many OF
those who predicted that our for
eign trade would rapidly decrease
on account of the termination of the
war were COMPOUNDED. Some of them
made explanation in this way. say
ing that the enormous money value
OF these exports for January and
February represented nothing but
the overflow. so to speak. of foreign
trade that was in progress when
the war ended.
An explanation of that kind no
longer avails. The expert author
itie-s speak with amazement not only
of the absolute magnitude Of our
foreign trade, but also of the fact
that IL is steadily increasing. The
commodities which are sold and ex-
ported are not war material The
detailed reports from Washington
do not tell US exactly what the
various exports consisted of. We DO
know that foodstuffs in enormous
quantities are being exported. These
do not represent the needs Of armies
but instead the needs of peoples.
They are peaceful exports. So also
machinery. various equipment. rail-
road supplies and oil in vast guam
titles are being sold and exported
in increasing amounts
Big Jump In April.
Now comes the report from WASH
ington of the aggregate of our foreign
commerce in the month of April. In
that one month the money value of
our exports was. in round numbers,
s715.000. 900. In other years 1t was
thought to have been a very gratify-
ing" record made by the export OF
cotton IL the money value Of that
export for twelve months was ap-
proximately $500 1000 Sometimes
The money value of our cotton ex-
ports for a single year has repre-
sented the trade balance in favor OF
the United States on the entire year.
or. in other words, our international
trade. exclusive of cotton. just about
balanced We imported as much as
We exported
Now in a single month-and that not
customarily the most active month in
our foreign trade-the money value OF
our exports is two hundred millions
or little more-in excess of the ag-
gregate money value in other years Of
our exports OF cotton
Do High Prices ExpIainf
II Is sometimes said that the pre-
tude Of the money value of our
exports While that is in part true 1t
Is not entirely true for high prices
do not seem to affect foreign pur-
chases OF American commodities. They
are buying our goods apparently as
freely as would be the case were the
prices lower.
II Is a new record that our exporters
made in the month OF April Never
before has the money value of our
export equalled that which represents
our sales and exports to other coun-
tries in the month of April.
We thought when the extraordinary
record made in January was reported
from Washington that II would stand
IN surpassed as a phenomenon of our
exports to other countries in one
month. That opinion was not correct
April has outdistanced January by
nearly y1oo. .o0O. 900. and all the indica-
lions point to a high record for the
month of May
The Trade Balance.
There stands in our favor an ap-
parent trade balance for the month
of April of a little under s450, ,oOo, CO.,
Many times in other years it has
been regarded as a most gratifying
ince for the entire year was $40O.-
10000. and especially gratifying if it
we're $5Oo0o0OOO But in those other
years this trade balance was only
apparent. not real. Heavy offsets
were concealed. not Intentionally,
and these inevitably reduced the ap-
parent trade balance. For instance,
here were hundreds of millions for
American letters of credit, many mil
ions for freight charges and insurance
and also the payment of dividends
and interest to those in foreign lands
who held American securities. But
row, the apparent trade balance for
april is substantially real. Letters of
,redit are being issued in compara-
lively strong amounts. We have alb
iorbed the larger part OF the securi-
les which before the war were held
~ European investors, therefore we
ire compelled to pay comparatively
little in the way of dividends and
interest.
II we go back to the first Of January
VI this year we shall find by Official
rtatement that the other nations have
Fought since New Year Day so many
commodities in the United States as
create obligations aggregating a
,llion and a half. Only about five
Feeks remain in the present fiscal
rear and early In July the Washing
on authorities will be able to report
uch an aggregate in the money value
" exports as four years ago would
: ave been deemed inconceivable. The
mind can hardly grasp the figures In
our months the money value of our
Exports was two billion five hundred
million dollars and these figures are
:reater than the money value of our
xports in any full year prior to 1914
One of the Effects.
In view OF this enormous world
rade IL Is presumed that IL in part
Explains the prevailing upward ten
ieRcies in the securities market. Our
oreign trade and the promise of great
iarvests together with the probability
hat the railroad problem will be ans
yered and peace established before
he present calendar year ends, con-
titute influences which inevitably
.ause an upward tendency in the se-
.Crities market
OF course the world cannot at once
ay out OF its own vaults or i'm
mediate resources this great debt
Dur own people are to be called upon
% aid the rest of the world in max
ng payments to the exporters. The
avings banks of the United States
will undertake to aid in facilitating
,ayments through the investment Of
avings banks funds in gilt edge for
ign securities. And the savings
ranks at the recent convention at
White Sulphur Springs urged the peo-
le OF the United States to purchase,
~ -aEa.-