The Washington herald., 1921-03-26
TRADE STABILITY
DEPENDS UPON U. S,
fOREIGNCOMMERCE
European Curtailment of
Orders Accordingly
Reduces Production.
INDUSTRY SUFFERS
World Now Clamoring For
Our Goods But Short
Term Credits Drawback.

Stabilization Of American industry
depends upon the extent to which
foreign trade Is developed. The
whole Industrial scheme Of the coun-
try has been expanded in the last
ten years to a point which guaran-
tees an output for full domestic
eonsumption and in addition re-
pquires the absorption of the prod
ucts by foreign markets. II the
demand for goods abroad Is cur
tailed either because Of the non-re-
reptiveness OF foreign traders to
our goods or a lack of facilities TO
promote this trade there must be
an according reduction of produc-
tion in this country.
At the present time industry in
the United States-and by this term
is meant the WELD of factories, mills.
mines and the neIds-is suffer
from such a curtailment. Europe.
the whole world in fact. is clamor-
ing for our goods but has not the
means to pay for them under the
present system Of short-term credits.
Before this set in our domestic in
dustry was producing on a scale to
meet q worldwide demand. The
cessation OF this demand. because of
the credit conditions which provok-
ed the national money stringency
and which in turn produced q credit
contraction. has brought about q
shortening of production in every
branch Of industry.
The recent figures of the Depart
ment of Labor showed that a.
100000 workers in the United states
were unemployed and these figures
reflect the shutdown of various in
dustries or at least the reduction OF
outpu-.
Reopeniag Markets Only solution.
The only remedy for this condi-
Zion 10 the re-opening Of the world
markets to which our industries.
built for q capacity beyond domes-
tic consumption. could send their
products But to give the United
States entry to the ports of the
world again there must be evolved
q new system OF credits on a long
term basis and a scientific program
for the maintenance of this world
trade.
The National Foreign Trade Coun-
ell. a. q result of it's survey into the
whole export situation. recently Is
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next May to consider the situation.
In its call. II issued the following
summary of the status OF America
with relation to the world:
Summary OF Amerie.'s status.
american Industrial production
during the last ten years has sx-
perienced . wonderful and unprec-
edented growth. Stimulated dur
ing the war period by an excep-
tional foreign demand. manufactur-
ing plants generally increased their
producing capacity far beyond their
normal requirements. In many in
stances today their purely domestic
trade falls short OF consuming their
output. with the result that America
- more than ever facing a situation
where Il Is imperative that We be-
rome a nation of world traders IL
our Industries are to continue IN
active operation and our prosperity
rs a nation Is to endure.
Under the stimulus of a war
made foreign demand American ex-
ports increased from less than
s2.5o0. .0o0. 900 in 1918 to more than
$4,000. 900. 900 iP 1920. The remark
able period Of prosperity that at
tended this revolutionary condition
fully awoke the American manufac-
turer to the tremendous possibili-
ties Of q well-developed and perma-
nent foreign trade. But out of
It all grew no really definite and
lasting foreign connections"
James A Farrell. chairman of the
eohncfl, has assembled statistics
which prove the necessity for con-
tinuing through some means to feed
into foreign markets
TN practically every business"
he, says. there Is a part of the |
roughly estimated at 20
per cent. which cannot remain un-
sold IL the FIRST so per cent Of the |
sales are to prove profitable. Re-
move this last 20 per cent and the |
whole operation ceases to show . |
profit. So II is with the productive |
capacity OF the United States: . |
certain volume Of foreign sales |
must be maintained or the industry |
of the country will suffer through
out"
The Industries built up during the |
war. which in many cases have |
gone into the production of mate
rails that formerly were recognized |
as the monopoly of other countries. |
are throwing into trade a variety
OF articles that are needed in every
country under the sum- OF course,
the United States always has led in
the shipments Of foodstuffs and ma
rhinery of certain character but Il
has gone into foreign trade In COM
pso,tion with Industries long estab-
lished in other countries and has
emerged triumphant. Here are a
few instances Of the commodities
deait in where we rivaled the pro-
duction of other countries in the
sams materials. These figures are
taken from the statistics compiled
I'D to June 80, 1920:
Automobiles, commercial. sf1.577.-
,s4: automobiles. passenger, $685.
l8f, ,0zs; automobile parts. $50, SGT;
rubber tires. s3s.s1s.777; chemicals
md drugs, s15s.0os.s27; dyes and
iyestuffs. s25.7s3.5s5; dyes. anaiine,
|fT.f3o,3s7: earthsnware. s7,10s.61s:
,sints. color. s27.7ss.s17; perfumery.
I7,s7s,i37; silk. artificial, ts,740,101:
'iiks, dress goods, s1o,os7.ss1: silk
s2s.si5,2s3; silk
apparel. tfo.01s,045; surgi-1
al appliances. ss.317.34s.
As an instance Of the grip Amer
can goods have gained no better
'xampie could be cited than that Of
Colombia. South America. In the
ast three years this country has
njoyed an exceptional prosperity
lne principally to her fortunate
offes crops. when the armIstfce
ame the warehouses Of Medeliin,,
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