Evening star., 1924-01-27

| serious situation IN trdQe With
! the far east. American money
which now goes to Europe is
being utilized. by Europe in regain
| ing the trade of the orient at the
| expense of American export trade.
A net unfavorable balance of Sl64,-
100000 in our American trade with
the orient in contrast to Europe's IA
vorable balance of s324,000.0O0 for
the same year G922) strikingly sum-
marizes the situation. These figures
are found in tables just made public
| by the United States Department Of
! Commerce,
Congress, which is now considering
appropriations for promotion and de-
velopment of foreign trade, is deeply
concerned over this situation, which
of individual members of Congress
by the large export associations
The facts are these:
The balance of purchases from Eu-
rope of the six principal countries
of the far east, over their sales to
Europe. showed almost a sevenfoId
increase In 1929, compared with 1919
The balance of sales of these same
countries to the United States, over
purchases from Anne erica, on tn. other
hand, has increased about so per cent
The favorable balance of these orien-
tai countries in their trade with ,he
world-the excess of their sales over
their purchases-has declined from
s76.000,0o0 in 1913 to sS,900,G09 in
1922
Situation Anslyzed.
Analyzing this situation, there were
three countries in the far cast
Japan, China and British India
which before the war imported sS9.-
100000 more in goods from Europe
than they shipped to Europe, where
as three other countries-the Philip
pines, Dutch East Indies and Straits
Settlements = exported S41,o00, 900
more to Europe than was brought
from Europe, leaving a net favor
able balance in favor of Europe and
against the orient of S4S, 10000 IN
1913.
In 1922 there were four countries in
the far east-Japan. China, Dutch
East Indies and British India-whose
total purchases from Europe exceeded
their sales by an aggregate of $33S,
100000, whereas only two countries
the Philippines and Straits Settle,
| ments, sold more to them than they
bought from Europe, TO the extent
of 900, making a net balance
in favor of Europe of s3o4,000. .GVU for
the year.
In 1919 the United States. on the
other hand, bought more from all of
the countries in the far east, with the
| exception of the Philippines, than it
s9id TO them, making d net urfavor-
able balance against the United
states Of sos, 100000. In 1922 the Unit
ed States sold more to China and tile
Dutch East Indies than it bough.
from them. but the balance in the
case of the four other far eastern
countries was against America
Causes of RcvivDL.
Europe has bees. able to revive, its
| export trade TO the orient largely
| through investments in it's colonial
| possessions in the far east and in
other oriental countries These m
vestments are largely of q CONNIE r
2iai and industrial character, and also
! !aclude large amounts Of capital in
vested in the production of raw ma
terial which the far east ships to the
United States, creating a favorable
| credit balance in this country
amounting to s500,oo0.O00 a year.
| which, taken together with the credit
| balance of Latin American countries,
| - 4iS oiLSStS the american eX-
cess Of merchandise exports to Eu-
rope.
Possessing over half the worid's
gold. with export trade therefore
handicapped by high prices result
ing from possession of this gold, ana
trade in the orient languishing for
proper financial support, the Unit. d
states still hesitateS to promote COM
| merce with the orient in the only
way that has proved successful-the
direct commercial and industrial loan.
! L. :. Annually Goes i'm Dept.
! Commercially this country annually
goes in debt to the orient and Latin
| America to the extent Of more than