, 1921-09-02
A MORE NORMAL FOREIGN TRADE.

An analysis of foreign trade, which is always an
Important matter in a manufacturing nation like the
United States, reveals the world wide depression.
Lower prices rather than diminished quantities are
responsible to great extent for the decrease in ex-
ports from eight billion in 1920 to six and a half bill
hon in 1921. For example, a compilation of exported
commodities reduced, SO far as possible, to a weight
basis shows weight increases Of "a per cent for the
groups of raw materials and of 81 per cent for food
stufs in 1921 compared with 1920, with a decrease
of 4 per cent for such partly or wholly manufactured
articles as can be shown by weight. The final totals,
including articles forming SO per cent of the value of
domestic exports in 1921, show a decrease in value Of
- per cent, but an increase in weight of 90 per cent
compared with the preceding year. Department of
commerce figures tell the story.
In cotton, for instance, nearly seven million bales
exported in 1920 brought a little under 81, 400, 00o,-
600, while 5,400. 900 bales exported this last year
brought but $500, DOC, 000, or to express it in percent
ages, there was a decrease of % per cent in weight
and Of 81 per cent in value. We exported 252, 000,-
900 pounds of dried fruits in 1920, valued at s42,-
600, 600, compared with 112, 100000 pounds in 1921,
worth $15,000,000. Here again we have . decrease
OF but 55 per cent, while the value fell off $50 per
cent. Exports of glucose, glassware, hides, tinplate,
leather goods, meat and dairy products, naval stores,
lumber, and many other products show decreases in
value out Of all proportion to the decreases in vol
unie; while there are certain articles which show an
actual increase in volume and a decrease in value,
comparing the two years. For example we exported
7s6,ooo,oo0 pounds of oilcake and meal in 1920,
worth 2 S,oO0,0 900, and $4,000 900 pounds in 1921,
worth SIS, 00o, 900; and of cottonseed oil we exported
the preceding year 159, 600, 900 pounds worth $780,
100000, compared with 2S3, 100000 pounds worth
$31 900, 900 in 1927.
The Republicans forecast a drop in exports long be-
fore they took place and the drop did not begin to
make itself felt until the last half of the fiscal year.
Aside from lower prices a number of other causes
contributed to the slowing down of export trade.
1. We no longer had a practical monopoly on sup
plying many kinds OF merchandise demanded by for
eign countries.
2. The devastated regions Of Europe are again
raising crops and are not SO dependent on us for food
supply. This will doubtless be offset considerably
this coming year by the demands from Russia.)
8. Europets pressing needs for raw materials have
been considerably assuaged.
a. With exchange rates Of foreign currencies de-
preeiated to a point which made prices in dollars pro-
hibitive, with DECLINING imports, the impossibility of
settling the balances already due the United States in
gold, the difficulty of arranging further credit IA
cilities, with cancellation of orders, rejection of goods
already shipped, and collection drafts dishonored, it
was impossible for exports to continue at the rate Of
$500, 00o, 900 to 5000, 900, 900 a month, to which they
had grown during the war, and for which the Demo-
cratic administration had the sublime effrontery to
claim credit.
All things considered, the trade for 1921 cannot be
considered SO unsatisfactory. If exports declined 1916
per cent, imports also fell s0.2 per cent, thus CIV
ing some relief to op own industries. 1t may be con-
sidered that we are getting back to nIrn,al trade which
a protective tariff measure will serve as an aid rather
than an obstruction.