Evening journal., 1920-11-03
TRADE BALANcE GLOWING.


A SURPRISING disclosure OF recent foreign trade sta
"A etics is u at our favorable balance Of
merchandise trade has continued although less
amount than during the war
In the past year foreign markets have absorbed Amer
goods to the value OF s2OOOOOOOO OF the
forehgn goods sold to America.
In the fiscal year 1919 the favorable balance OF the
United States in the neghborhoo Of siOO0OO0OOO
and for the period the outbreak OF the war aggre
gates some si6OOOOOOO0O
In II is gratifying to the United states, as
Delawareans know, to be an enormous creditor In
chandse trade.
That situation in our foreign commerce gives the
business OF the United States credit claim upon the
rest Of the world for service commodities equivalent
to the balance stated
But It must be admitted that in view Of the unsettled
and uncertain conditions in various countries there may
be some doubt as to the value Of a continued large
favorable balance, for there might come time and a
condition which would make it. dcut FOR the foreign
debtor to pay
O. p. Austin, statistclan OF the National City Bank
in New York. has made study OF our foreign trade for
the past six years and presents interesting com
par1sons In the latest issue OF "The Americas"
He develops the fact that the United States has been
increased importer OF quantity OF goods in far greater
proportion than 1t has become exporter OF quantity
OF goods
The reason for this may be readily understood Dur
ing the war and since peace was restored the Omitted
States was in a position 10 conduct manufacturing op-
eratons more extensively than could any OF the nations
OF Europe
Therefore, the United States imported an increased
quantity Of raw Materials bestowed upon them the
labor necessary to prepare them for consumption, and
then exported them at the increased value represented
only by the labor but by the inflated prices which
prevailed.
In the early history OF the United States people
principally producers OF materials depending
laey upon other countries for our manufactured COM
modlties.
Under economic policies which encouraged home pro-
dction the United States gradually built up manufacur
ing industries thus giving American labor the advantage
wages paid in the process OF manufacture During the
when manufacturing in Great Britain, France Ger
many Belgium and Austrla-IIungary. was diverted to
materials naturally the world looked TO the United
States for larger proportion OF manufactured commo-
dities
All indications are that both Great Britain and Ger
many are rapidly getting back peace-time basis OF
manufacture and will succeed in that direction unless
ne Bolshevht movement shall overthrow industrial en-
teTprise.
The question OF reat interest oste industries Of the
United states s whether this country can hope to con-
tinue the advantage which it built up during the war
II So there will continue TO be reasonably full EN-
poyment for American labor II not there will neces-
sarily be closing OF mills or curailmen OF output in
the proportion that we lose our markets TO foreign
competitors.
Mr. Austn's statistical analysis does not touch upon
economic policies
One cannot survey his figures however, whou ne'ne
impressed with the idea that the nrst duty OF tnose
Interested in American manufacturing enterprise Is 70
assure 10 the American producer his home market mus
preventing the invasion OF that market by foreign man
ufacurers unless they shall pay import duty repre-
sents al least the difference in the cost Of production
here and abroad.
With the home market assured there is no danger Of
disastrous collapse OF American manufacturing enter
prises although there may be diminished foreign dc
mand