The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1923-05-02
FOREIGN TRADE
BALANCE IS
SH|F TING
imports Nearly Equal Exports
as U. S. Takes Place as
Creditor Nation.
BY ROBERT s. THORNBURGH,
international News Service.

BY ROBERT s. THORNBURGH,
International News Service.
Foreign and domestic trade OF
the United States is in the course
'of a remarkable economic evolu-
ton which, within the next two
Iyears, is expected to bring about
la marked excess of imports over
exports, wiping out the so-called
favorable" balance of trade, ac-
Icording to experts of the Depart
ment of Commerce.
Commercial Basis Firm.
With the transition of the United
States from the status of a debtor
to q creditor nation complete, the
faster rate OF increase of imports
over exports is considered by Of
ficials to be an indication that this
country will soon be on a COM
mercial foundation from which it
can be dislodged only by a war OF
undreamed of proportions. This is
a position Great Britain has
occupied for many years, /. e., with
imports far ahead of exports. and
one which the world war did not
materially impair.
Preliminary figuresmindicated 10
Department of Commerce experts
that the imports will practically
balance the exports of $3.50, 900, 900
for March. Official figures for the
first eight months of 1922.1923
show an excess of exports over IN
ports of $334,615.6S1 and while
pected the balance of trade VIII be
under that figure June 80, giving
the lowest favorable balance For
many years. The figure in 1912
1920 was $3.50, 636. 449 and in 1921
1922 had dropped to $1,163 OF ,48l.
Getting Raw Materials.
While by some economists the
increase of imports is viewed with
alarm, an analysis of Department
of Commerce import figures show
ing imports $500. 000.0 greater in
1922 than 1921, disclosed that half
Of the increase was in crude ma
terials little produced in this coun-
try, $200,000,000 was in semi-manu-
featured articles and only SAC, 000,-
900 in finished goods.
This means that in return for
finished manufactured goods pro-
duced in United States, the world,
unable to pay us in gold, has REIN
hursed this country in goods es-
sentials to the operation of our
manufactures. It was pointed out
that should other nations have no
raw materials needed in this coun-
try, American foreign trade would
practically cease. since it is only
in raw materials the world can
paw.
The more highly industrialized
the United States becoT1es, the
greater will be the necessity to draw
upon the world for crude materials,
officials asserted. The United States,
with high standards of living and
high consumptive power. can take
in vast quantities of foreign ma
terials without impairing the bust
ness fabric, since the imports tend
to be those which do mot seriously
compete with American produced
raw materials. The most impor-
tant of these are Egyptian cotton,
sugar, coffee, rubber, tin, jute, sisal
and hemp.
Invisible Imports Grow. -
The newest and probably the most
noteworthy ascendency of American
commercial supremacy is in the
increase or our invisible imports
These constitute the extension Of
American insurance underwriting
on United States ventures abroad
and on United states ships and
cargo; the extension of American
banking abroad, by which this
country is more and more financ-
ing it's own ventures; the shipping
of American goods in American
bottoms, instead of paying foreign
merchant ships to transport it. I'm
visible imports also take in the
interest paid to this country on
foreign debts, held both publically
and by private individuals.
The invisible exports a debit,
which will soon be counter balanced
by the invisible imports" in the
opinion of. Government officials,
constitute American tourist eXpendi-
lures abroad, amounting to some
| $500, 600, 900 annually; American re-
lief to foreign countries, ship
charges on passengers and cargOes
moved in foreign bottoms, insur-
ance and banking commissions.
This country pays little interest to
foreign holders of American securi-
ties, compared to tthe pre-war
figure.