Omaha daily bee., 1921-07-16
Apparent Slump r
In us. Trade With
World Explained |
Although Volumne Is No Less,
Lower Prices Cause Reduc-
ton in Amount of
Money Received.
By HOLLAND.

If it be true, as some of the en-
perts report, that the prices OF many
products have now reached rock
bottom, then there should be all end
Of the policy which has been so long
followed OF buying only those things
Of which the need is imperative.
They speak of the policy which has
prevailed this spring as hand to
mouth policy, That means OF course
that no one is buying any more than !
is Immediately necessary. Price re-
ductions have been made so rapidly
and i'll many instances have been so
drastic that the impression has pre-
vailed that lower prices are still to
come. The public will discover
speedily that in many cases the bot
tom prices have been reached. Then
the beginning of large purchasing
will be observed.
Happily for the wheat farmers the
prices received tor wheat are better
than corn or oats and considerably
better than cotton. One of the ex-
plantations which is given for the
higher price which wheat commands
compared with other agricultural
products is that from Russia very
little wheat. if any, will be exported.
Formerly Russia's contribution to,
the worlds harvest of wheat was an
important factor. Now, unless Rus
sia finds some way to get into the
world market, little if any wheat will
come from there. 4,
Why Trlde Fell OFF.
There begins to be good understanding
of the reason why our international trade.
especially our exports. met with great
and sudden falling off in the IL months
which ended on June 90 1t was fall
ing off more apparent than real The
trade continued. but the money which
that trade represented was far less than
the amount of money received In that
trade a year ago. and in fact, for three
or four years.
We are accustomed to measuring our
trade in terms of dollars
rather than quantity If this fact be borne
In mind, then there will be good Under
standing Of the chief features of our In
Department of Commerce show that In
the past IL months the falling off In
our trade SO far as quantity is Gems
cerncd. was not very large. But In the,
began an era of price-cutting. 1t was first
Observed in April 1t acquired momentum
and later in the year, before the winter
frost, had reached the bottom Of Its de-
preston except in steel. tE
This was true not only Of the United
States, but of the world. and it is stated
prices was the chief factor in the amaz-e
ng and anxiety-causing drop In our in
ternstioual trade. If we take the month
II May this year. comparing our trade .ina
hat month with that OF May, 1925, an
excellent illustration OF this changed sit
lauon can be obtained '1f
Drop Of 5000, ,oOo, 900.
In May of this year we imported corn-
medities OF the money value of trifle
yer s2oo,ooo,ooo. But in May of last ysar,
si3o, 600 Here, then. in a single
month is a falling off OF more than 5000,
)oo,o0 So. also on the other hand, the,
money value of our exports in May was
'S30, 10000 and this was nearly 1000
100. 900 less than the money value OF our,
,xports. in May: 1920. Statistics of shis4
N enormous falling Off In our interna-s
ional trade, In May. 1921, as compared
With May, 1920. But 1t was a falling off
my I'm, IN dollars, to 1t reflects the reduetop4
egan little over year ago. The Wash~{
ngtoD authorities do not report in detait,
he quantity of goods exported and inn
orted. but the reasons are excellent for
ssuming that the quantity was well;
maintained. There was reduction in the
mount Of money received, but not much
NJ
'orted and exported. ID
In fact, we imported certain commodi.t
les in May of this year greater In amount
nan IN May of last year. That Is true
4 silk. This commodity was bought by
american silk manufacturers In greatly
increased amounts. compared with like
purchases in May Of last year. In fact
he increase was about Is per cent On.
he other hand. there was falling off
II price and it Is customary to-
Measure our trade in terms of dollars
ather than In quantities 1t would Scent
$ though our international trade In raw
ad really increased by rs per cent. Go.y
ng back of these figures 1t is reason
bic to infer that the silk industry of the
nited States. which was one OF the first
D be hard hit. is rapidly recovering.
In Matter of Wool.
The wooden industry of the United
tates and the wool producers Of this
ountry were early affected by the fall
prices. Yet there increase in
ne purchase of wool produced In other
tates of nearly 15 per cent in May Of
his year, compared with May OF
lst year. But there had been decrease
considerably more than so per cent
alue of wool imports greatly de-
reased the quantity OF wool imported
as increased.
showing somewhat similar IL made.
y that part of our international trade
hch cotton represents Taking again
he month of May for an example, we
xported more cotton by 33 per cent IN
lat month than we did in May Of the
revinus year. but there was an almost
ppallin decline in the market price. II
as equivalent to 81 per cent.
May was taken as typical month.
ut what was true OF May was. relatively
,eaking, true of other months of the
,ar Measured by quantity our inter-
stional trade did not fall off appre-