New-York tribune., 1920-10-31

leiT. ................. $3.50, 600, 900
1918 .....-........-... 2.974 900. 900
1919 .-........ tl29 600, 600
Is-V. .....-'.. '...--... z,ot1VUV,VV
The foregoing figures indicate clear
ly the abnormal situation that has ex-
listed during the war and during the
two years since the war. During the
four years ended June 80. 1918, we sent
out Of the country merchandise of a
value almost $4,000, 100000 greater
than the merchandise we brought into
the country. When we take into &C
count that the statistics compiled by
the Department of Commerce do not in
clude merchandise exported by our
government directly, it Is probably safe
20 say that in these four years exports
exceeded imports by more than $lO,-
000000,000. In the year ended June 80,
1919, We sent out of this country mer-
chandise of value Of $4,l00 900 900 in
excess of the merchandise we brought
in. In the year ended June so, 1920
we exported merchandise having a value
almost So 00,000,000 in excess Of tac
merchandise we imported.
Exports on Decline
In the first three months Of the eur
rent fiscal year the value of our mer-
by s422 900 600. If we could assume
that the other quarters Of this
fiscal year would show a balance of
the same amount as the first quarter,
the total export balance for the wear
would be 81 .6SS 900, ,000-about 60 per
cent of last years balance. AS a matter
Of fact, with exports decreasing more
rapidly than imports, we should not
expect the export balance for the year
ending June 30, 1921, to be in excess Of
81 900 600, 900.
il? IS there anything we ought to do
about it?
am not going to venture an answer
70 these questions, but ! am going to
call attention to some Ct the frnda-
mental principles which underlc inter-
national trade. The transaction of ex-
change is one Of the oldest transactions
in history 1t begins with the division
of labor. Division of labor existed in
the simplest states Of society The
weaver found that he could get his
hoes cheaper by making two baskets,
one for himself and one for the shoe
maker. And the shoemaker found that
he could get his baskets cheaper by
making two pairs of shoes, one for
himself and one for the weaver. Indi-
'.dual application to one occupation
produced more for all than an effort of
each individual to do all for himself.
Basis for Exchange
Exchange begins with and is based
upon division of labor AS soon as q
man recognizes that he can do some
thing for others and others can do
something for him exchange becomes
one OF the habits of life-exchange be-
t%sen indiv duals, exchange between
different parts Of the same country, ex-
change limited only by the means of
munlcation become easier the division
Of labor becomes more complex. But
the principle of exchange remains the
same
Every exchange transaction is recip-
rocal-you give something and you get
something. You transfer goods or rem
der services to others in return for
goods they transfer or services they
render to you. And exchanges go on
only so long as they are mutually
profitable. II is fair exchange" that
rs no robbery" This ,aeans that the
goods and services that this country
furnishes to other countries will repre-
sent goods and services Of equal value
furnished to this country by other
countries. Our exports of merchandise
Will never exactly balance our imports
Of merchandise, but our exports of
merchandise plus the services that we
render other countries will equal In
value the imports of merchandise plus
the services that other countries rem
der to us. There is no escape from
such a conclusion unless men are to
quit exchanging things Of equal value
and begin giving things away. We hear
& lot about our export trade, but oul
export trade involves an import trade
The nation that will not Duy, neither
shall it sell
There wer- about thirty years in
our history from 1871 TO l820-in
which, our imports exceeded our ex-
ports by more than $500, 100000. How
did this new, young country pay for
that relatively vast importation Very
largely by rendering a service-a ship
i, ping service. This New England com
munity was building ships for the
world 1t was carrying goods for the
people OF other nations. During the
last twenty years our annual exports
have always exceeded our imports
How have we been paid for the diff
ference? Very largely by service
rendered to us-a shipping service.
am quite conscious that IN reduc-
ing our international trade problem tC
these simple terms I am omittine
reference to the part played in the
settlement Of trade balances by loans
Of fresh capital by payment Of interest,"
on capital. by funds brought to anC
remtted from this country by immi-
grants and a number OF similar items
In one way or another, however, al
Of these items are services, and the
fundamental fact remains that the
goods and services which the people
Of one nation put into the balance are
equa led by the goods and services wh;ch
they receive from the rest Of the worlo
IN return therefor.
Yet, Notwithstanding this fundamen
tai fact, there are many people who
keep telling us that wa must keep VI
exports and curb our imports, AMI that
while we are doing that we must q 'sC
render an additional shipping service
TO the rest OF the world. In what con
ceivsble way are we to be paid fol
these exports? In what conceivable
way are we to be paid for that shipping
service ?
am not criticizing the man who " want:
70 confine our commercial activities, sc
iar as possible, within our own borders
for the purpose of this discussion we
may assume that he is right or we may
assume that he is wrong. We mus
remember, however, that IL we cou Z
succeed in growing and in making a
como all that we need there woult
then be no reason for an export busi
neAs-there would then be no need FOL
Snipping BUSINESS. The nation tha