Evening star., 1921-09-24
commerce CHIEF
RAPSPESS|M|STS
Or. Klein Dsnounces Dismal
Stories From Supposedly
Informed Men.
by the Associated Press.

by the Associated Press
BOSTON, September 24.-Emphatic
announcement of what he termed
dismal stories from supposedly well
Informed business experts" regarding
the collapse of American export trade
and hopeless future prospects was
made here last night by DR.. Julius
Klein, director of the bureau of for
eign commerce of the Department of
Commerce, speaking at meeting of
exporters called by the Boston Ex-
port Round Table. DR.. Klein charac-
teriZed as absurd" opinions that
prospects We're hopeless for inland
manufacturers because of demoral-
izcd banking ard transportation
facilities and strangling European
competition. and were simply one
phase of the panic which had swept
through some OF the country's eN-
port communities.
The loudeSt complaints, he SAID
had enanated from the thousands
of opportuniStic adventures, who ap-
peared on all sides during the war
boom and drifted into foreign trade
as just one more field for chance en-
JerpriSe. The sober. substantial ele-
mentS among our exporters have not
lost faith. They have cleared away
the fantastic debris of the recent hec-
tic past. and are now laying the foun-
,tation for a substantial and lasting
structure. The past few months OF
anxiety have certainly been trial
by fire. but those months have en-
pnatiCally not revealed any inherent
weakness in our foreign trade ef-
forts and ambitions. in spite of the
aiarmiSt reports and propaganda OF
many who unintentionally or other
wise are retarding our recovery from
the present slump.
Will Require Modification.
IN discussing the European situa-
ton the director referred to the spirit
of .'Hationalism' resulting in obstacles
10 American foreign trade IN the
shape of preferentials and subsidies
10 home Industries with heavy sur
taxes and prohibition upon foreign
goods. The imperative demand for
economies and price reductions Will
require early and drastic modification
of such expensive artificial stimulants
TO trade. he said. In speaking of
what he termed the exporters pet
terror. German competition, the
director cautioned that it takes more
than price cutting to win and hold
an export market permanently. Quail
ity. delivery terms and credit ar
rangements are three vitally impor-
tant business factors. and these
should be taken into account in an
aiyZinS vague reports concerning
German success. he said.
Turning to Latin America, DR.. Klein
said Cuba was the best market for
American goods. taking about Sc per
cent of the total exports to that re-
gion. He said the outlook for 1922
was far from depressing, as the Gu
han administration had already re-
cuced its budget estimates of ap-
propriations from Sl04. .000. 900 to S55.-
100000. and that, due partly to the
good work of the banking liquida-
ton commission, it is authoritatively
predicted that many banks now in
suspension will be able to reopen by
the early part of next year.
Exchange Is Blamed.
The present depression in the Ar
@cntine trade. said DR.. Klein. is due
mainly to the exchange situation,
which is explained largely by the
difficulty which Argentina is ex-
periencing i'll marketing it's surplus
agricultural and pastoral products.
He said conditions are improving in
that country
In some respects, he continued,
the far east presents a more hopeful
picture of reviving trade prospects
than other overseas markets. While
China is suffering from her chronic
Ills in greater measure than ever be-
fore. yet her trade continues to
flourish. Japan, which was the first
country to feel the existing depres-
sion. will probably not feel the full
effects of the coming trade revival
until the renewal of activity in the
SILK markets of the United States"