Evening star., 1926-05-27
ARMS CUT TO AID
U. S.FORE|GN TRADE
Saving in Military Expense
Expected to Stimulate Buy
ing From America.
BY j. G.. ROYLE.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, May 27.-The feeling
In favor of disarmament in Europe is
growing, according to American bust
ness men who have just returned, and
will not be checked by adjournment OF
the preliminary disarmament commits
sion at Geneva until Fall. This will
have direct and favorable effect on
American foreign trade. Economists
are urging the European nations to
make the savings from reduced mill
tary establishments pay their debts.
With debts being paid. the increase in
absorption of American goods and
materials is regarded as automatic.
Henry M. Robinson, member of the
Dawes Commission. who aided ma
terially in outlining the plan under
which Germany now is paying repara-
tions, has compiled figures showing
that Germanys payments to the allies
under the plan do not exceed the sums
Ii cost to maintain her peace time"
military establishment before the war.
Bankers with international connec.
tions indicated today that the possible
saving to France as result of the
breakdown of the Riff opposition
would aid the position of the franc
and French finances in general.
Alarm Is Unwarranted.
Government officials assert that
alarm expressed over the fact that the
latest reports show an excess Of
imports into this country over the
shipments of American goods abroad
has been unwarranted DR.. Julius
Klein, director of the United States
Bureau of Foreign and Domestic Com
merce. stated today that shipments
abroad Of manufactured goods. which
now comprise 63 per cent of American
exports. were well ahead Of the CORE
spending period of last year.
There was no doubt as to the i'm
provement in the condition of Europe,
the best customer of the United
States
Not only does Europe absorb 81
per cent Of our exports DR.. Klein
said. but she is heavy consumer
of goods from countries which are our
best customers in Asia and Latin
America. Her recovery. therefore.
means that the other countries will
have their buying power stimulated.
enabling them to buy more American
goods
John f. Miller. export manager of
the f. l. du Pont de Eemours Co.. de
clares America MS must be prepared for
sharp competition with necessity for
strict economy in production and dis
Exporters for II years" he said.
have been selling service instead of
merchandise. Any one who delivered
the goods could get orders. This can
not be expected to continue. especially
rs the European countries are getting
on their feet again. Competition
first ammunition will be prices. Our
most certain defense is reduced costs. :"
Competition Is Intense.
DR.. Klein admitted that it would be
futile to minimize the possibility that
America should sustain some losses
of trade as a result of the increasing
intensity of competition.
''In certain lines of iron and steel
and textiles" he added. I'VE are en-
countering here and there consider
able difficulty, especially in those
fields where price is the major consid'
GRAFTON. In the vast majority of our
fabricated exports, however. our
trade has been built on the more last
ing foundation of quality rather than
low prices"
The adverse political conditions in
the Far East are regarded AS re-
sponstble for the failure of Ameri
can exports to increase in anything
like the proportion of imports from
the Orient. The advance in the last
year has been only about a half of
per cent in exports to the Far
East. but the trade with that part
Of the world totaled $2.094 100000.
The United States receives more i'm
ports from there than from any other
region, with silk and rubber swelling
the totals for raw materials. These
adverse conditions, however, are be-
lieved to be only temporary.