New-York tribune., 1922-12-27
Imports Reported Flow
ing In So Rapidly Eu-
rope May Expect Part of
U. S. Gold Supply Soon
Estimated Surplus
OF $7OO,OOO,OOO
Overiaxed Ports Show
Levies Haven't Kept Out
Goods, Cabin eft Hears
By Carter Field

WAohiNGlON, Dee. Eo.-far rom
the new tariff law having built a stone
wall against imports, goods are flowing
in so rapidly that export Of part OF
Americas huge gold surplus may be
expected in the near future, President
Harding was told at tO-duy's Cabinet
meeting.
The President and some Of his col
leagues expressed astonlshment at this
prompt refutation Of the charge that
the new tariff Law had made Il impos-
sible for Europe TO struggle back TO
normaley by paying FOR American
grain with her products.
Facts and figures galore were laid on
the Cabinet table by Secretary OF Com
meree Hoover. backed also by some ad-
ditions from Secretary Of War Weeks,
showing imports are increasing enor-
moUsly and exports have been doing
pretty well. though the movement Of
foodstufs 20 Europe has not had the
desired activity.
DoHAoh otA DhHiurhh 1iAC0
The business at the port Of Boston
was cited 70 illustrate the vastly in
creased amount Of imports coming 20
American shores. Two port appraisers
reported 10 Secretary Weeks that a
hundred ships laden with goods from
European countries were en- route 20
Boston, and the capacity Of the ports
storage space already was overtaxed
10 such an extent that portions Of the
warehouse space al the army base had
70 be utilized.
The constantly increasing movement
Of supplies from Europe 10 America Is
reflected also in the tolls collected at
the Panama Canal, which have mounted
materially despite the levies Of the
new tariff law. IL was disclosed the
tolls collected for the FIRST two. weeks
Of December amounted 20 S700,000s hg
far the largest sum received in sfY
such period during the last several
years.
As another ewdenes OF the absence
of any adverse effect by the new t1rlh
the fact was cited that i00.000,O0O
pounds of wool had been stored in
bonded warehouses in Boston awaiting
the enactment Of the tariff law, and all
this supply has since been absorbed.
Wool nov Is being imported 20 meet
the domestic demand, II was said. Fig
ures also have been received IN ofieial
channels which show the Christmas
shopping this year far exceeded pre-
vious years.
Jump in Imports Explained
Secretary Hooyer's information on
the big lump In imports and It's rapid
overhauiinr Of the total Of exports,
thus tending In the direction Of gold
exports, is on top, he explained TO the
Cabinet Of The element Of invisible
exchange. This comprises the amount
Of money spent BY American tourists
abroad. absorption here Of foreign
loans. remittanees Of immigrants 20
their relatives IN Europe, losses by
Americans in speculation In foreign
eurreneles and other elements which
do not appear on the ledgers OF ordi-
nary commerce.
Mr.. Hoover estimated the amount OF
invisible exchange against this country
or Of American money poured into
Europe through these ehannels-as not
less than $1,000 ,000. 900 In the fiscal
year Of 1920, and not less than u '4VO.
600 900 an The year ended last June 80.
Mr.. Hoover called attention TO the
following paragraphs from his annua'
sThe gold situation In the world is a
matter OF a great deal Of economic
thought and no douH the heavy, drain
10 America has contributed 70 the in
stability Of foreign eurreneies, not only
by the dImlnution Of their essential
guarantees, but also by the huetuation
OF Exchange involved In liquidating
trade balances in this fashion.
SSo77,oOo,ooo Gold Stock
nour gold stocks amount 10 about
50, 3,077, 100000. OF this, the minimum
legal necessities AZ the moment ior
assurances 20 our currency and ereolts
amount roughly 10 about Sl,oOO'OOo'VVV'
but for a 90 per cent reserve OF Sc
curity wo would require about SZ'4VV,-
100000. Therefore, our surpius t
amounts 20 somewhere over SfoO,VVo,-
900. While this Is an asset, H. never
theless. would be more advantageous 70
US II IL were In active use abroad.
"The automatic tendencies IN our
international trade and financial re-
lations are, however, setting strongly
toward rcctihcation Of TINS ~nole
situation without artificial action
There Is a steady increase in the ratio
Of imports over exports OF gooos' %
indicated by the decrease In the aver
age monthly balances in our favor
over the last two and one-fourth years
AT this rate we would, theoretically,
reach a balance In the moyement OF
goods In another few months. HOW
ever, economic movements do not pro.
ceed on time schedule. IL would AZ
least, appear that the Invisible e1-
change 10 able TO take care OF con-
nnoditv balances and that we are reach
inR the end Of the gold import stage
81 war readjustments-
"The Theoretical assumption that the
new tariff will 20 diminish our imports
as TO strsngie the buying power OF
foreign countries for our exports does
NOT seem borne out by a critical ex-
---s-af.- - tba arfual fnctOrn IN