Milford chronicle. [volume] (Milford, Del.) 1878-1974, 1923-05-25
BALANCE TURNS-DEMOCRATS
DUMFOUNDED

AS predicted by the Republican Pub
licity Association month ago, the Off
cial trade statistics show that the
balance of international merchandise
trade turned against the United States
in March. The trade for March shows
imports S402,00O,000 Department es-
timate), exports $341 100000 Checked
up), balance against us $61,000,000.
The Association estimated that i'm
ports for March would be about $751;
100000. The estimate of the Depart
ment a month later, and with most of
the figures before it, increases this
figure by less than per cent. The As
sociation's estimate would have been
closer to the final figures had it TAX
en- as it's basis the average ad valorem
rate of duty on all imports for the en-
tire period September %, 1922, to Feb
ruary 29, 1928, but desiring not to
over estimate the organization erred
slightly on the side of conservatism
by applying to March imports the
highest monthly rate which had Oc-
CURED under the new tariff, namely,
about 16 per cent.
And here the layman may be let in
on a little secret with respect to fore
casting imports: The Treasury De-
partment generally reports within two
or three days after the end Of each
month the customs revenues received
for the month just ended. If those
revenues are divided by the average
rate of duty for previous months the
value of total imports for the month
in question will be closely approx
mated. That value is not officially
made public by the Department Of
Commerce for some weeks after the
close of the month in question due to
the difficulty of compiling and check
ing up reports from the various ports
of entry. For example, the Treasury
Department reports April customs du-
ties at $53, 736,000. The average ad val
orem prior to April, under the Ford
ney-McCumber law, has been some
thing like Is per cent. Dividing that
into the customs revenues and we have
$358, 100000 as the estimate of imports
for April, which will probably be
found pretty close to the actual inn
ports when the official report is made
some time in June. This again would
indicate that the balance for April
was against us, since the Departments
estimate of exports is $341 100000.
But there is little to worry about
with respect to this turning balance.
AS stated by the Association in it's
advance review of March trade, it is
due to three causes: first, we are i'm
porting increased quantities of crude
products because our mills are run
ming at near capacity, most of them
prevented from full capacity operation
only by the scarcity of labor; second,
the domestic demand for goods is so
great that our producers, in their en-
deavOr to meet home needs first, have
either eased up in the struggle for
foreign markets, or have found it in
difficult to secure export
able surplus; third, the purchasing
power of the American people has
been so greatly enhanced by the pre-
7ailing prosperity that they have been
buying larger amounts of imported
goods. In other words, the protective
policy has not injured, but it has aid
I'd foreign nations in securing better
markets here, and that without undue
handicap to American producers. Not
these facts, our exports
lave increased $3O6,OO0,0OO comparing
he period October 1, 1922, to April
10, 1928, with the corresponding per-
cd under the Democratic tariff law, or
rom $2,110,000,000 to $2,416,O00,0O0.
The Fordney McCumber tariff law
ook over year to perfect, but it was
o scientifically adjusted as to be the
Owest tariff law ever framed consis-
emit with the protective policy, it pro-
ects our industries and agriculture,
nd it affords greater encouragement
} the exchange of commodities than
ny tariff law ever enacted. 1t has ut
srly stumped the Democratic party,
hitch is now combing the field for
Ome other political issue.