The Washington times., 1924-07-15
CONDITIONS ARE
Be TIER IN
EUROPE
Or. julius Klein Reaches This
Conclusion After Inten-
siye Investigation

today than It was Immediately after
the war, according to julius Klein,
Director OF Foreign Commerce, of
the United States Department Of
Commerce. in discussing foreign
markets for American agricultural
products.
Definite economic progress has
been made through the efforts OF
Individual farmers, merchants and
manufacturers" Klein said.
THE physical plant and produc.
tive equipment OF Europe Is rela.
lively unchanged, and, freed from
the restraints and regulations i'm
posed by uncontrolled nationalisme,
the plant would function"
Klein pointed out that the indi-
vidual producer Is working the plan
within limits prescribed by pres
ent conditions and circumstances,
and that 1t Is fair to assume that
he will so further as soon as the
limiting conditions are removed"
when all the difficulties in the
way Of progress are considered, it
IL 3 striking commentary on the
economic vitality Of the individual
European producer that he has been
able to maintain production and
buying power at even the present
level, Director Klein declared.
Increase u. s. Buying.
From Klein's remarks it was as.
sumed that he believed within a
reasonable period Europe would in
crease her buying Of American pro-
ducts, both raw and manufactured,
and would be able to absorb some
Of the excess agricultural goods of
the United States. A market for
the excess agricultural products IL
regarded as the chief solution for
the problem of the American
farmer.
Europe has furnished, and con-
tfnues to furnish, the market for
approximately so per cent OF the
81 800. 600. 900 worth Of agricultural
products exported from the United
States annually, according to Klein.
The disturbed economic condi-
tons following the world war have
had a profound effect upon the
ability OF the European market TO
purchase the raw materials and
manufactured products, which It
would normally require.
According to department experts
much of Europe's fortune was con-
sumed during the war. and Quanti-
ties of its accumulated and reserve
wealth have been expended since
in meeting deficits. With lower
national incomes and increased popu-
lation, income, it was stated, must
be divided among more people, and
there has resulted "a marked de-
cline In individual participation and
hence in the standard Of living.
"The situation is further aggra-
waited by the fact that such ma
tional income as remains Is UNI
equally distributed by reason Of I'M
balanced internal production Klein
added.
Certain Classes Proper.
Certain classes are relatively as
well off as they were before the
war, while the standard Of living of
others has declined perceptibly. It
is this latter body which IL the
largest consumer Of European agri.
cultural imports and the class which
so largely creates the buying power
abroad for those articles.
s'These conditions have q direct
bearing upon the demand for farm
products from the United States"
From the best estimates avail
able at the Department of Com
merce, industrial activity in Eu-
rope is on a level only SO to 70
per cent az high as before the war.
The ability Of Europe to purchase
Is measured largely by it's ability to
produce. Agricultural activity &in
Europe outside Of Russia, however,
appears to have returned to between
80 and 80 per cent of its pre-war
level.
Department Of Commerce experts
said that the ability OF Europe to
pay for imported farm products de-
ponds upon its balance Of trade,
which may be built up by exports
of goods from Europe, by returns
from so-called invisible sources such
as services rendered abroad, emf.
grant remittances. foreign loans, or
by exports Of gold.
Imports Increase.
Europe's actual import Of essen.
tial foodstuffs has not declined
when compared with pre-war levels,
but has actually increased in many
instances.
Considering Europe as a whole.
exclusive Of Russia, there has beer
a definite decline In the consunlp.
ton of bread grains amounting on
the average to about 10 per cent.
However, this decrease lies solely
IN European production, since i'm.
ports of bread grains have averaged
as large or larger than before the
war.
The deficit in consumption az
bread grains was made up largely
through the substitution Of note.
toes and other homegrown prod.
ucts. Imports Of meats and meat
products into Europe have been
maintained. Imports OF less essen.
tial materials have been curtaiied
markedly. $500
CT AIMS RIRI g ENIIAlrN