Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-12-12
SAFETY FIRST In EXPORT TRADE


The Incoming republican admins
tratton Is on record as having q
broad gaug-
Plans to P1otest ed and long,
Our Trade Interest. cen. Of the
foreign trade future OF this govern
mont. The outgoing democratic ad-
fnindstration has warned Congress
that truthworthy American represent
atives must be- stationed in other
lands to protect the commercial inter-
eets Of this country.
SsGrstasy Colby has urged upon Con-
gress the necessity for reorganization
Of the foreign service by the employ
mept Of technical experts so that
economic and commercial develop
ment in the new era may be prop
erly sized up for American interests,
and he is on q trip to South America,
where is found today the best pos
sible example of what lack of such
expert advice may spell in loss or
disaster to American manufacturers
lions committee has before 1t the rec
concentrations Of the departments Of
State and Commerce regarding funds
needed properly to protect Amerlcan
interests, and experts from these de-
Partnents are testifying regsrding
unsls s:ms plan. :, f9 3er tie esds
The present situation with regard
to Latin American trade 10 about the
worst In the entire world. but the
cfleials Of the bureau Of foreign and
domestic commerce advise the Ameft-
s.n ., sas Gnnt r oee the be
patient, and soon q normal, stable
trade with these sister republics will
be rshabil!tated.
Tho present depression in Latin
America 10 one Of the manifestations
OF the general
Trade Depression sft after
In Latin America. fecang the
whole world. The primary causes Of
the present slump seem to be: First
The falling market for the principal
raw products Of Latin American
couptriss-wool, hides. coffee. cacao.
sugar, tobaeco-practtcally every ex-
port commodity which does not have
q widespread hjgh-priced market as
in the past, Just az our own basic raw
materials. This results in an adverse
trade balance, and consequent depre.
citation Of their currency in relation
to the United States dollar. Second
The price drop In the United States,
which, Of course. makes foreign buy
trsotsd for ct the higher prices pre-
yailtng months ago. The anticipation
Of further price reduction In the Unit
ed States is another awkward factor
in the situation. Third-Ths Latin
American importer IN many cases is
to 50 per cent on account Of his de-
preciated currency. Other things be-
ing equal. therefore, he would prefer
to buy from European countries,
whose currency is at 2 discount. rather
than q premium. In Latin America,
foreign capital for industrial develop
ment.
+ \
The fact that many South American
buyers have found their stores stocked
with h!gh-priced goods
Caneeleds when the prices have
49, dropped suddenly, has led,
us0ess. more than anything, else,
to 4 wholesale cancellation Of orders.
Merchants In many countries have
Cancelled orders for goods befpre or
after arrival ut tho port Of entry, so
that many thousand dollars' worth of
goods are now lying on the docks,
suffering deterioration, and unclaimed
by the consignees.
The bureau Of foreign and domestic
has been watching the COM
mercial developments in Latin Amer
lea, and when the avalanche of can
celiattons started. cabled to all Its
comm srcial attaches and trade COM
misstouers TO use their utmost efforts
e prevent cancellations aad adjust
THIS situetien. which has developed