Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-08-15
us. TRADE BALANCE
SET AT $5O9,0)D,ODO'
invisible" Imports Include
$4,000, 900 in Bootleg
Liquor, Hoover Says.
BY the Associated Press.

By the aSsocIdteu ffess
A balance sheet of Americas for
eign business for 1926. issued today by
the Commerce Department. indicated
that the Nation took from abroad val
ues greater by $500, 100000 than those
exported.
Not only was the visible" trade of
the country taken into consideration
in compiling the statistics. but also
sums involved in invisible" trade aris-
ing from such sources as expenditures
Of American tourists abroad, prices
paid for smuggled liquor and freight
and insurance payments collected by
foreign vessels in American ports.
Summing up the figures, the conclu-
sion was reached that the United
States exported "visibly" and "invls.
IDLY" in 1925 values to a total OF S.
O33, 100000, while imports. in the same
fashion, were valued at $S,542,O00,o 00.
Foreign Debt Increased.
The net result of all transactions
was to leave foreign balances in Amer
lean banks increased by $359.O00.O00.
Notwithstanding, as Secretary Hoover
explained in a foreword. that during
materially it's debt to the United States.
1.-THE year 1926 seems to have set
new high record in all three of our
largest invisible items Of trade" he
said, "in private investments abroad,
tourist expenditures and the yield of
our foreign investments. During the
year nearly 100000 Americans made
journeys in non-contiguous lands, and
American tourist expeditions in Can
ada also broke all records. The Ma
ton seems to have done more travel
ing and lending than ever before.
ION December 81, 1926, foreigners
had on deposit in American banks
about 81, 443, 900 .000--ample proof that
we are now a great short-time debtor
Nation along with our position as a
great creditor in longtime investments.
Moreover, foreigners had on deposit
American stocks and bonds amounting
to about S1,S78. 1000, 900. Our net growth
as a creditor nation for the year was
only 1857 100000. This sum, it may
be noted would be much smaller if
one should consider the increase in de.
posits of foreigners in American banks
as a deduction"
S40,O00,0O0 in Bootleg. -
The 1926 merchandise exchange,
gave the United States a favorable
balance Of $337 100000, it was report
ed, the years exports having been
$4,000, 100000 and imports $4,431 ,0O0,-
600. Offsetting this. the statement
gave the world 100000 credit
as having 'invisibly" exported to the
United States that much in bootleg
liquors. This figure is the same as
that found in previous years, and was
based upon confidential reports fur.
nished by the customs services and the
Coast Guard.
The account reckoned 1925 tourist
abroad at 1851 900 900,
while it said that foreigners travelling
here spent but $115. 900 900, SO that the
United States incurred a net debt of
$646, 100000. On this item private
foreign investments of American cit
liens earned interest and dividends
Turing 1926 totaling $67S, 000, 900, which
a national credit, the re-
port said, while the war debts OF the
itself earned $195, 900
in interest and principal payments for
the same period.
$32e,000,O00 Sent Abroad. g,
Another item going into the calcu-
residing here to their home
which sum was treated as
a charge against the United States in
accounting. Foreign
vessels earned s175.000.000 in carrying
freight.
New American investments abroad
for the year were calculated at 1882.
900 900, while in the ebb and flow Of
exchange fluctuations, 1t was figured
that American securities had been sold
abroad with total value Of 1886, 000,-
900, and American stocks and bonds
had been brought back from abroad
to a total of $500 100000. Touching
the complicated movement Of capital.
as represented by the stock and bond
coupled with debt ma
turtles and redemptions, the state
ment concluded that the Nation had
imported total values of 1881, 900, 900
and exported $1,424, 900 900, leaving the
balance of 1851, 100000 mentioned by
Secretary Hoover as the years net
growth Of foreign investment.
New Low Established.
Foreign trade during July fell to
lower totals than had been encoun-
tered in any month since 1925, the
Commerce Department also reporting
the total value Of July exports at $343,-
900, 600 and imports 1927 100000. leav-
ing a favorable balance Of $16,000,0 900.
For July, 1926. exports amounted to
$36S, 317 900 and imports to 1888, zoo, 900.
A part OF the export drop in July
was explained by department trade
experts as due to a $1,000. 900 decrease
in cotton shipments from the June
total, but the chief reason for the
shrinkage was said to be the price
declines which have been noted IN a
large number of commodities Of re-
cent months.
Gold movements for July were
likewise small as compared with those
of previous months. The country i'm.
ported in July $1o.373. 900 in gold and
exported s1,S03. 900, thus adding
gain Of $3.50, 900 to its total stock OF
the metal. In July. 1926. gold imports
were s1s.s2o,ooo. and exports ). We're were
ed to 1854 900 and imports to 81.
231, 900.