Evening star., 1926-04-26
j. s. TRADE ABROAD
SHOWS HUGE GA|NS|
International Transactions
Increased Nearly $5,000,.
100000 Above Pre-War.

foreign countries from $4,000, 900 coo
in 1924 to nearly $500. 100000 last
year was declared by Secretary
Hoover last night to show very
strikingly the enormously increasing
Importance Of our foreign CONNER
cial and financial relations" The
figure was a gain OF approximately
81, 100. 900. 900 over the 1928 total and
nearly $4,000. .O0O. 900 more than the
annual pre.war average. The sum
mary is contained in the fourth an
nual international trade ha la nee state
ment made public by the Commerce
Department.
increasing economic stability In
foreign countries" the Secretary said.
was reflected by a net import of
fully one-fourth of the estimated
amount of American currency held
abroad and by the fact that the move
ment of foreigners bank deposits in
this country declined for the first
time since 1921.
Strengthens Investment Position.
During the year the United States
further strengthened its International
investment position. Our total foreign
holdings now amount to about $40, 400
600 900. having increased hy more
Our total returns from foreign invest.
ments are now greater than at any
time in our history"
In the absence Of complete and
accurate figures which. 1t was said,
would show total exports and imports.
both visible and invisible. TO he equal.
the statement. allowing for errors
and omissions" estimated the final
residual balance last year at $64.-
100000 against the United States. The
same balance In 1924 was S74 600 900
in this countryS favor.
In reaching the residual balance,
department experts first reduced the
favorable merchandise balance of
1851 600 900 to 1856 .OO0. 900 bv allow
ing 100000 900. the same as in 1924.
10 be placed on the import side Of
the ledger. for smuggled goods. in
Guiding liquor. and S25 900 900. q re-
duction Of IS 900 900 from 1924. on the
export side for unrecorded parcel post
packages. The allowance for Snug
gled goods in 1923 was $3.50. .0O0. 900 nd
1acc. $50, 900 900.
Favorable Balance Increased.
The combined favorable balance on
all visible items. including the parcel
post and smuggled goods factors. was
s16S 900 900. which represented the
first net export in gold and silver
since 1919. These exports last year
were 1861 900 900. while imports
reached $l93. .O0o 900.
This balance was sliced almost in
half by an adverse net OF $4,000
600 in invisible trade. AMOUNTS paid
out in foreign countries by American
tourists. immigra MT remitta noes. pay
ments for foreign shipping and other
services totaled $1,273, 900 900. while
only $930. 900 900 came in as interest
on foreign government and individual
loans, dividends on foreign invest
ments, payments for use Of American
ships expenditures by foreign tour
lists here and royalties on American
motion picture films.
The S491 200. 900 balance thus reach
ed was completely wiped out by the
excess of $494. 100000 which Amer
leans invested abroad over foreign In
vestments in this country. The de-
tailed financial transfers included pur-
chases in this country of SAIL .OO0.0Oo
in securities. payments by forelgns
of S140 900 900 on maturing bonds, and
a discharge of $27.000,000 from the
principals of debts owed the United
States.
This total Of s57s,00G. 900 was pitted
against an outlay Of 100000 900, rep
resenting purchases of outstanding Sc
curities from foreigners; $974.0Oo,0oo
publicly subscribed for new foreign
securities in this country, of which
1920, 900 600 was received by foreign
borrowers after deducting $54 900 900
in commissions. and a net amount Of
Sc. 900 900 in United States currency
reimported.
Net Adverse Balance.
This gave a net adverse balance Of
So. 600 900. provided all international
were settled without re-
sort to deferred payments and inter-
national hank accounts did not change.
A decrease of $61 900 900 in for
eigners' bank deposits reported by
1856 banks in this country enlarged the
unassigned difference in the totals to
$64, 900 900.
Mr.. Hoover called attention that in
calculations Of this kind. depending SO
largely on estimates. there lis always
the possibility of errors, although
there is q. tendency for some of these
errors to neutralize each other"
Although the excess of exports in
merchandise dropped 1904. .O00. 900
from the 1924 figure and a marked
increase of SIPS 100000 in imports of
new foreign securities was shown
over that year. these were balanced
by equivalent credit cha nges. such as
replacement of the $25S, 900. 900 gold
import excess of 1924, by the $134,-
600 900 gold-export surplus last year.
a total net credit of 1892 ,000, 900.
There also was a $4,000. 900 increasg
in foreign bonds paid off. $116.OO0,
900 in net exports Of outstanding Sc
curities and $5O.O0O, 900 in net interes1
and dividends from foreign invest
ments.
Gold Movements Cited.
While gold movements revealed an
export excess for the year, there was
no certainty ii was said, that such
would be the case in 1926. since there
was a gold-import surplus Of $16,:
000. 900 during the last half Of 1925.
Invisible imports constituted 81 per
cent of total imports last year. while
this type Of exports made up % per
cent of the total exports. These
were the same ratios in 1924. and
since they assumed such an impor-
tance in the whole picture. It was
gratifying. Mr.. Hoover asserted, to
observe that statisticians of many
other countries are now beginning to
publish studies of the same sort.
F. c. BAIRD NAMED DRY
CHIEF OF TWO DIVISIONS