Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-12-26

to the attention of American business
organizations state that there was a
decided preference for American mer-
chandise created during the war
against these temporary advantages.
these being the fact that all exchange
business was in the hands of British
banks, which were, naturally, re-
iuctant to favor any other than Brit
Ish business, and policy on the
part of the principal importing houses
to import only such articles as were
or imperative necessity from other
sources than the United Kingdom.
X \
The native houses in Ceylon find
difficulty in obtaining merchandise
from American sources,
Difficulties inasmuch as they have
in ceylon with ' ths un seane sts,as
and are. as a rule, obliged to place
their tndents with British export
agents. who naturally give prefer
ence to British firms.
The problems confronting United
States trade in Ceylon have been
given special consideration by the
Department of Commerce. Although
the export trade of the United States
to Ceylon Is more than five times as
the pound sterling continue through
out number of years in its present
depreciation 1t is probable that the
temporary advantage gained by Amer
lean manufacturers would be rapidly
lost, unless. after having passed
construction period British manufac-
turers cannot compete with the
United States in production costs.
This conclusion is based upon the
supposition that labor and other pro-
duction conditions will eventually ap-
preach normal in both countries.
There are certain items of manu-
facture, however. for which 1T would
appear that a permanent market has
been established. These are chiefly
motor vehicles, hardware and drug
gists' sundries, the American product
in each case being given preference
by the Ceyion purchasing public, but.
until American exporters have direct
representation in Ceylon, and thus
make 1t unnecessary for native firms
to conduct business through British
export agents, American trade must
remain at a. disadvantage in that
market.
There is good market for American
goods in France. particularly limo
leums, typewriters,
Goods Needed Office furniture, cal
culating machines,
W 31"90' and electrical goods
of all kinds. Whether or not it will
be possible to begin business under
the present exchange situation is
problematica1. The Calais market,
rather an Indifferent one in normal
can exporter. as he is obliged to COM
pete with very strong commercial
nations who are better situated. The
present high prices are considered
temporary, and in consequence none
business ventureA Inquiries for
American goods have entirely ceased.
the reports to the Bureau Of Foreign
and Domestic Commerce show. Those
who have been put in touch with
firms through the efferts of
the American consulate report that
they have been highly pleased with
the merchandise offered and that it
should find ready sale. They say
that while they are certain to be able
later to establish permanent business
In these lines, it Is not possible for
them to do business at present on ac-
count of the high exchange rate and
market conditions.
There is decided advance in the
value Of all important exports from
the Lyons district to the United
States. This increase is not merely
q question of higher prices. There is
a decided change also in the quantity
Of goods shipped. The exports of
1919 are nearly three times those of
1918. Even when translated at the
are more than double those of the
previous year. The increase has been
not only by the exchange
values but also by the wave Of ex-
following the war.
WILL P. KENNEDY