The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1921-11-28
SOUTH AMERICAN
TRADE WITH u. S.
MUCH INCREASED
That From West Coast
Nearly Doubled
Since 1913.
CANAL BIG FACTOR
Present Favorable" Balance
Due to Conditions in
Europe.
CANAL BIG FACTOR

Announcement from Panama that
the trade between the western
frontage of South America and the
eastern frontage of the United
States formed a larger percentage
o. he 1921 business of the Panama
Canal than that of the, United
States with. any other section of
the world, suggests. says the Trade
Record of the National City Bank
of New York, the wonderful change
which has come over our trade with
South America since construction
of the canal. In 1919. the value of
the trade of the western frontage
of South America with the entire
United States was but s79.000,OO0,
while in 1921 the trade of that sec
ton of South America with the
United States was s13s.ooo.oO0.
These gains in our trade with the
Pacific frontage of our neighboring
continent at the south, adds the
banks statement, bring sharply to
the attention of the commercial
world the remarkable change
which has developed in our South
American trade in recent years.
From 1900 to 1920 the trade of the
United States with South America
had shown a continuous adverse
balance" The imports from that
continent were constantly greater
than the exports thereto, but in the
fiscal year 1921 the balance" for
the first time in many years,
changed in our favor and in the
twelve months ending with June.
1921, our exports to South America
were $4,000, 900 greater than the
imports therefrom. the actual fig
ures standing: Imports from South
America. s4s5,25O,o0O; exports to
South America. s523.450, 900; excess
of exports over imports. s3S.2OO. 900.
The persistency of this adverse
balance" in the pre-war conditions
is not surprising. The United
States is a very large importer of
tropical and sub-tropical foods and
also of raw manufacturing mate
rails, while her exports are chiefly
food. manufacturing materials. and
manufactures. AS South America
was a large producer of coffee, CO.
Goa, and other tropical foods, and
also of wool, rubber, copper. tin
and other manufacturing materials
imported by the United States. il
was quite natural that our pur-
chases from that continent should
be heavy, while the fact that South
America did not need our foods or
raw material and had the habit of
buying her manufactures in Europe
kept the value of our sales to that
continent much below that of our
purchases therefrom.
With the changes Of the war,
however. and the reduction in the
quantity of manufactures offered
from Europe. the South Americans
made closer acquaintance with our
manufactures and liked them. and
also found it advisable to buy their
coal from US, especially during the
period of coal shortage in the
United Kingdom. from which they
had drawn most of their former
supplies.
These changed conditions have
resulted in the general increase in
South Americas demands upon our
manufacturers. and readily suggest
the answer to the query as TO how
1t happens that the adverse trade
balance" which existed for many
years in our trade with that conti-
uent has no changed to a favorable
balance amounting to S3S,00o,00O
dollars in the fiscal year 1921.