Daily Kennebec journal., 1925-01-01

tie unemployment there Is no reason
to expect any material change In the
course of this industry.
Our railroads have shown continu-
ed increase in efficiency during the
year, and have now proved them
selves equal to any burden which is
likely to be thrown upon them
Motor transportation continues to
develop and to enter more and
moro into the vital economic life of
the country-in fact, almost imper-
ceptibly our road Improvement
programs are taking on the COM
pIexion of new transportation sys-
tens.
Our foreign trade has shown con-
siderable expansion during the year
in exports, and some decrease in i'm
ports. The increase in export
figures has been due in some degree
to the higher prices of agricultural
produce. though chiefly to general
expansion in all exports; the de-
crease in imports has been due in
large part to leSsening activity In
production lines at the middle of the
year. thus reducing the requirements
for imports of raw material. The
total of our exports for the year will
show about four billion six hundred
millions and our imports about three
billion six hundred millions. The
merchandise balance will be about
one billion dollars in our favor. the
net gold imports for the year in
partial liquidation of this balance
amounts TO about two hundred
eighty millions.
Our invisible exchange will show
larger balances against us than in
! 1928 because Of the greater volume
of tourist travel, increased freight
! charges paid foreign shipping, and
above all the largely increased
volume of loans and investments to
foreign lands, which will probably
amount to IS much as one billion
as against one-third OF that amount
+ for 1923.
International trade in the world as
n whole shows a larger movement
, OF commodities during the past
year than at any time since before
the war. But international ex
! change of goods, measured in
quantities, is probably still 10 or II
per cent below pre-war. although
the United States is unique amongst
the large combatant nations in hav-
ing recovered it's foreign trade to q
point Is per cent 10 20 per cent
above pre-War on u quantity basis.
! One OF the by-productS hitherto Of
this lower movement of COM
modities has been the continued de-
preston of shipping. With the
general strengthening of the eco
nCmic fabric Of the world, with the
/ gradual growth in the movement of
commodities which is now taking
place, together with the fact that
there has been but little new ship
construction during the last four
Years. and that the existing ship
ping is becoming more and more
obsolete it is fair to expect q re-
covery in the shipping world. The
usable surplus tonnage at the
present time in the world is prob
tons as against four million tons 4
year ago.
The year has again been marked
by decrease in federal taxation and
by Il large discharge of federal debt,
which will amount for the year to
something in excess of 5000, 900.
Time and demand deposits In
member banks show an increase of
about two billion eight hundred mill
lions. and bank clearings for the
year We're higher than in 1923. The
gold reserves have not increased de-
spite imports because of the larger
clrculat'on given to gold certificates.
Savings continue at very high rate,
as indicated by the increasing saw
inGs deposits, the large absorption of
fCnd issues, and the extraordinary
expansion in insurance thus demon
strating that there has been MAIN
tained a high state of efficiency
throughout industry and commerce,
with little evidence of waste, eX-
travagance and speculation. In fact,
the most far reaching movement in
our economic life today is the
larger understanding of its broad
problems, the better appreciation of
the factors OF stability, and the
definite progress in the elimination
of waste, through more stable en-
ployment. through better admins
trative methods and through the
rapid march of scientific discovery.
That we are able to maintain wages
at 100 per cent above pre- war while
the cost of living is - per cent. and
the average wholesale price of COM
nodities about so per cent above
pre- war is the very definite proof of
increasing efficiency in production
and distribution and Of the free flow
of competitive action.
In the foreign situation the set
tlement of the conflict over German
reparations through the Dawes plan,
with its sterilization of German
curl ency and the German budget and
the recuperation of employment and
production in Germany, is having
and will have q far-reaching effect
upon the whole of Europe, and it
has favorable influences reaching to
our shores. Great Britain shows
considerable Improvement in all
phases OF it's economic life.
The commercial and industrial
situation in France, Italy. and
Belgium shows steady improvement
during the year. Some progress is
being attained in these countries
towards reduction of expenditure
and increased taxation, directed
towards the better balancing of
budgets and more stable currency.
Poland has stabilized her currency.
Yugoslavia, Finland, Serbia Esthonia,
Lithuania. Sweden. and Norway
show manifest stability in economic
and trade conditions and steady
progress over preceding years. The
Netherlands, Denmark and Spain
show some temporary depression
during the year due to local condi-
tions which are improving. Austria,
Eoumania. Bulgaria, Hungary and
Turkey do not show the rate of
progress of some of the others. Rus
sia makes no real advance. A large
part of Europe. however, continues
dangerously oVpr-1rO)a1 and -,,r