The Washington times., 1923-12-24
FAVORABLE
BALANCE
LOST
Changed Values and Demands
OF Industry for Raw Ma
terials Are Factors.
By ROBERT s. THORNBURGH,
International News Service,

By ROBERT S. THORNBURGH,
International News Service.
For the first time in the coun-
Sry's history the United States is
importing more agricultural prod
ucts than are being exported, the
Department of Agriculture an
nounced today.
Americas favorable agriculture
trade balance has been completely
wiped out, while the nations total
exports exceeded imports during
the year 1923 by less than quar-
ter of billion dollars.
This condition has come about
despite the fact that the United
States is the greatest agricultural
country in the world.
Adverse Balance Heavy.
futures compiled by the Depart
ment of Agriculture show that i'm.
ports of farm products during the
fiscal year 1929 totaled $2,315,.
100000, while exports totaled only
1897 900 900.
Government economists were un-
prepared today to commit them
selves definitely as to the perma-
nent effect of the loss of America s
favorable agricultural trade balance.
but they were of the opinion that
the figures reflected the country's
great manufacturing activity dur
ing the past year.
American manufactures are so
extensive and so diversified one
official said, that we are drawing
from all the world for raw mate
r1aIS that we cannot economically
produce at home.
No Injury Seen.
~As our industries are becoming
- highly developed as to require raw
materials from abroad, it becomes
possible for us to have an unfavor-
able trade balance in agriculture and
other commodities, without injury to
our commercial fabric
The excess of agricultural imports
over exports is chiefly due. it was
explained at the Department OF
Agriculture, to heavy buying of for
eign silk, rubber, wool, sugar, coffee
and certain fruits by America
The United States produces about
100000 tons of beet sugar annually, |
but 80 per cent of that used in this
country comes from Cuba. The De
partment of Agriculture is endeavor-
ing to increase American beet sugar
production and is meeting success
Wool onI
tine. in spite of high tariff, comes
into this country in great quantities.
Agricultural authorities pointed
out that the export OF farm COM
fnodities has fallen off considerably.
due to the economic collapse of GER
tain European markets.
L. s. Capital Abroad.
Department of Commerce officials
called attention to the heavy invest
ment Of American capital abroad as
q stimulant to increased imports In
the sugar business alone more than
$50, 100000 was invested in 1922 in
Cuban plantations. New investment
figures are to be issued soon and are
expected to show a material increase,
The interest on this capital, it
was pointed out, must he paid
principally in raw materials, since
officials regard IL economically in
advisable to import more gold.
1t was stated that American
commerce may expect an excess Of
imports over exports up to June Of
each year. With the easing off Of
manufacturing following the peak
of spring business, imports of raw
material will decrease 10 a favor
able trade balance later in the year.
The favorable balance also is in
creased by summer and autumn
movement of agricultural crops
abroad.
4 statement from the Department
Of Agriculture indicated that an.
other factor in increase of imports
was an increase in their value. FIX.
ports of agricultural products fell
off 100000.
Change in Values is Factor.
"-The value of import OF elk in
the period ended June 80, was
3414, 900 as compared with 1907
0o0.0 900 the preceding year" said the
statement. Sugar was S369, 900. 900
as compared with 5000, 900 GOO; coffee
1892, 00o, 900 az compared with $149,-
900 900; crude rubber 1859 900 900 as
COMPARED with $S7 900, 900, and wool
s157, 100000 as compared with s46.-
600 900.
Wheat exports during the fiscal
year were valued at 1892, 900, 600
as compared with s28O, 900 900 in the
preceding year. and corn SIS. 900. 900
compared with $4,000, 900"
naa1na 90