East Oregonian : E.O. (Pendleton, OR) 1888-current, 1921-09-09
STEADY DECLINE IN
EXPORTS REACT ON
U. S HOME TRADE
Dear Dollar Exchange Forms
Big Obstacle to Remedying
Situation; Need is Seen.

international News Service Staff
Correspondent, M

! u
WASHINGTON, Sept. 9.--Continuedl
decline in export trade in recent
months, from the N'peak" figures OF
the war period, has brought With it
still larger degree of uncertainty inl
domestic industrial trade fields.
The governments programme to FL
nance exports may be broadened con-
siderably. " is also probable that the
plan OF extending financial relief to
1 domestic agriculture must assume
\ larger proportions. with the inevitable
/ piling up of surplus stocks In Ameri-
) can warehouses.
Exports dropped from ss,000,000,-
900 to $500, 600, 900 last year Since
\ the beginning of the new fiscal year.
& July 1, the decline has continued. Fu-
4 ture ni5hths probably will show steady
z drops in the volume of goods sold to
4 foreign buyers.
Officials are giving close study to
q the problem in connection with its i
4 bearing upon measures designed to all |
= in restoring business in general TO nor
y NAL Comptroller Of the Currency
q Crissinger's explanation of the export
) trade drop and what it means TO Am
2 ercan business was this:
y Exchange Rates Impedcs
= 1--WE need to increase eur exports.
q But in our new place as the greatest
y creditor country We find it difficult.
4 The difficulty is Increased by the fact
Xl that American money Is the best in the
, world-the most expensive.
4 Take Italy for an example. on a
y gold basis five Italian lire would buy
4 dollars worth of goods from Anerf-
4 ca. But the lire is so deprecated that
3 IL take more than twenty lire now to
q buy a dollar. Naturally the italian
y wants to buy in market where he
\ gets more for his money American
4 money being at the top OF the heap.
\ they are all trying to get goods some
q where else rather than from Ameri-
y ica."
This cheapness in the value OF mon
q ey Of all other countries. therefore, Is
y driving them away from American
markets. They are trading with othei
4 countries whose currencies are depre
B ciated nearer to their own standard o
exchange. Officials have no way 0
3 predicting when these exchange fluc
\ tuations viii cease and currencie
< made more stable.
3 Out OF the chaos in exchange ther
2 have come to the officials reports tina
y some Of the industrial countries tina
are fighting America in capturin
Z world trade wherever 1t can be gainet
or re-opened, are not disturbed owe
Z their low exchange, but are taking at
Z vantage Of that situation. especially
4 America Is strong competitor.
HouFe Markets Decrease
I The falling off in exports continue
to back up in American markets
Z much larger supply OF goods not nees
ed at home. This accumulation
z goods, normally raised for export,
< having a disastrous effect upon II
agricultural and other industries, b
Z cause it renders more serious the pfi'
uncertainties OF the near future {
many staple goods.
Xt To prevent any great disturban'
coming to American producers ar
shippers The War Fiance Corpor
z tion has adopted a policy of civil
Z larger credit relief to concerns haviI
goods for export. The corporate
Z has already assured to producers al
export associations nearly 100000
600 in financial backing from Cover
Z ment funds.
1t is expected that several hundr'
9 million dollars will be advanced by Il
corporation, now that it becomes ey
dent that heavier Withdrawals on Il
( export credit account will be justifie
Most of the corporations loans ha'
been made to assist in financing e.
Z ports, which are permitted to rema
in American warehouses for a peric
Z of six months before actual movemei
! overseas
Looks for improvements
Z Under this plan the Government
giving support to the producer and e,
2 porter, expecting that by the beginnir
3 OF another year conditions will hay
improved, both in domestic and ir
Z ternationaT trade, as result of adjus
ment of some of the disorders no
z noted in foreign currency systems
: The programme to finance the need
of farmers on products raised tn
Z year will call for heavy advances
these channels Officials today coul
z not estimate what sums may be need
Z ed to facilitate the. operations OF tn
farmers. But there is a firm dispos
( tion by the administration, throug
the medium OF the finance 6orporatio
4 and the Federal Reserve System, /
make credit more easily available {
agricultural groups and to help theI
y to keep on their feet until bushes
: becomes normal. Several hundre
million dollars in advances Is prob
& able.
Z Where normal credit channel
3 abroad are broken down, but there ez
lists an excellent prospect that befor
! long credit arrangements will be rs
4 vived, the War Finance Corporation
& stepping In promptly to relieve II
n nancial distress.