Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1920-02-02
INCREASE SEEN
IN AMERICAS
FOREIGN TRADE
Secretary of Commerce Thinks
Europe Will Buy Heavily
From u. S.
CONDITIONS ON CHANGE

WASHINGTON, Feb. Europe, al
vays Uncle Sans best customer, taking
considerably more than one-half Of our
exports. will draw upon US heaviest In
the next few years for raw materials
and foodstuffs Secretary Of Commerce
Alexander said in discussing the foreign
trade outlook.
Secretary Alexander believes that II
present conditions Of deprecated e1-
change rates for our dollar continue for
any length of time-which probably VIII
hanpen until the trade balance is more
nearly normal-Europe's purchases from
American dealers may be restricted TO
those necessities which can not De oo'
tanned elsewhere.
The. warning is held out by the com
r,erca director. however, that American
business interests should not permit
themselves TO be unmindful of the glgah-
tio strides expected TO be made oy tue
Turoneans in competition with US as soon
as thew are on their feet and nave
brought their manufacturing output up
again to normal.
EUROPEAN COUNTRIES
FORMIDABLE RIVALS.
0As soon as the highly developed man
ufacturing countries-England' france
Belgium and possibly Germahy--aIs
again able to produce manuIaoture,u
goods for export they may be In pos.
tion to underbid us, so far as huropean :,
and adjacent countries are concelneu'
Mr. Alexander said. e.os
One of the most encouraging features
Of Americas export trade, In Score
tarv Alexander's opinion, Is the con
tinued expansion in recent years OF our
trade with South American, far-eastern
and other countries, whose manutactur
ing interests are not yet highly de-
veloped.
"Our more promising possibilities for
extending our export trade would seem
to lie in this direction" MIR. Alexander
stated. Exchange of our manufactures
for their raw materials and tropical food
products should result In lasting ana
profitable trade.
cit is evident that the increased ship
ments to Europe Of raw materials and
foodstufs are not due to superior sales
manship or special inducements In com
petition with other exporting countries,
but are a result Of the strong demand
in Europe for commodities indispensable
for reconstruction work.
ONLY AMERICAN
PRODUCTION SUFFICIENT.
Europe knows these goods are obtain
able in sufficient quantities only in
America and are bought here with the
price a secondary consideration especial
ly II satisfactory credit terms are made.
$50 far expansion OF our exports to
Europe has been mostly with neutral
and allied countries. Their need OF sup
plies is fully as pressing as in the cen
trail countries but owing to unsettled In
ternal condition 1t has taken longer to
arrange for re-establshment Of trade
connections"
As soon as the United States enters
a state of peace with Germany and other
central countries with which We were
at war 1t was Secretary Alexander's pre-
diction that trade with those countries
will begin to jump forward.
Trade with the central countries not
only will expand, Secretary Alexander
says, but he looks for this trade to some
extent to take the place of goods now
shipped to neutral and allied countries
when their urgent needs shall have been
supplied
Secretary Alexander said he confidently
expected exports would have tendency
to continue for some time near their
present high level Notwithstanding ad-
verse exchange rates, II private firms
can find the means of carrying long time
credits
Secretary Alexander Is not an alarm
list over the prospect Of mounting i'm
ports hurting our trade situation
Larger imports" said he, Especially
so far Is they tend to relieve the for
eign exchange situation, have a bene-
fetal effect upon our foreign trade as a
whole. Analysis of the character Of
goods forming this increase shows that
practically the entire gain is in the i'm
ports OF foodstuffs and crude materials"
Before the war our favorable trade bal
ance with Europe on the merchandise
account approximated $500, 100000 a year,
to great extent offest by the invisible
balance of trade of interest, ocean freight,
tourist, immigrant and other remittance
The American merchandise trade bal
ance with Europe in the last FIVE years
has mounted to the stupendous total Of
$16,0O0OOO,00O. About $4,000 600 600 Of
this is covered by allied government obll-
cations, while the balance Of 10000. 600 900
apparently is being financed on private
accounts.