The Washington herald., 1921-09-24
USEKPORT TRADE
HESOUlw BASIS,
KLEIN DECLARES
Bureau Director Replies
To Complaint Of War
Baby" Houses.

ROyrON, atass.. Sept. 23.-Com-
ploteIy discreSitinE reports Of the
,ollapse of American export trade
and denouncing pessimistic views
~ future prospects for the sale.
~ u,anufa ~tured goods abroad. DR.
IuIIus Klein. director OF the Blu
raau of Foreign and Domestic
commerce, IN an address tonight
Ihsfore the Boston Export Round
frable Club, declared the United
states will hold its own In foreign
markets.
rhese .aiarInist opinions he
aid. .s"are simply one phase of the
ranfc which swept through some
-osnlnunities IN which the so-called
ar -bahy export houses had been
rJurishing."
On solid Foundation
The ioudest complaints" he
. lded, "emanated from the thou
sanas of Adventures who drifted
into foreign trade as just one
,,ore field for chance enterprise.
We can and will hold our own in
those markets and trades in
which we have a real interest.
rhe sober, substantial elements
.nonc our exporters have not lost
faith. They are now laying the
foundation for a substantial and
lasting structure.
one thing is sure" said DR..
Klein, "and that is the ground
work of our export interests has
now been laid bare TO rock-bot-
tom. The past few months have
not revealed any inherent weak
ness in our foreign trade efforts
and ambitions, in spite of the
slarnist reports and propaganda"
IN discussing the European situ-
alton Mr.. Klein referred to OBJ
stacles to American foreign trade
in the shape of preferentials and
subsidies TO home industries with
heavy surtaxes and prohibition
upon foreign goods. The .precari-
,,us state Of many foreign budgets
AID imperative demands for econ
omies and price reductions VIII re-
quirc carly and drastic modifica-
ton of such expensive artificial
Stimulants to trade. The guidance
Of international trade by sound
business principles depend largely
upon their removal" he said
German Goods Inferior.
In speaking of German competi'
ton, the director cautioned thai
il takes more than price cuttinE
To win and hold an export marke'
permanently. Quality. delivery
terms. and credit arrangement:
are three vitaIly important factors
and these should be taken into ac'
count in anaIyzing reports concern
ing German success. He said thai
the latest reports received in th'
Department of Commerce indicate
a fundamental change from th'
presrar qualities of German good
due to serious shortages of raw
materials. industrial equipment ant
skilled artisans
Turning to Latin America, Mr.
Klein called attention to Cuba
which he said was the best marke'
ia all of Latin America for American
Goods taking about SO per CEN
"c our total exports to that region
lie said that the outlook is far from
depressing. lie said that the CubaI
administ has already reduced
budget estimates "f appropriation
from s1O4. 900. coo to $4,000, coo. Du'
partly 10 the work of the banking
,iquidatfon commission, il is pre-
sicted that many banks now in sus
peusion will be able TO reopen b,
he early part OF next year. This
addition TO the probable establish
ment of a bank of guaranteed issu,
md rediscount. will assist in tn.
objection of accounts due Ameri
ans. he said
Exchange Affects Argentina.
The present depression in oul
Argentina trade" said DIR. Klein. 'ii
due mainly to the exchange situa
ton. which is explained largely b,
the difficulty which Argentina il
experiencing in marketing its sur
plus agricultural and PASTORAL prod
ucts." Conditions are improving il
that country, he added.
In some respects the Far Eas
presents a more hopeful picture o
rowing trade prospects than othel
overseas markets" ne said. 'whil'
China is suffering from her chroni
ills her trade continues to flourish.
In closing the director called at
tention to preparations for NOR,
effective service to exporters b!
the Department of Commerce. II
spoke OF the fifteen new commodi
ties divisions. whose especial dutie
will involve the establishment o
direct contact with exporters AM
manufacturers on one hand ant
with the conditions and problems II
their overseas mark cts on the other