The Daily Alaska empire., 1930-04-24
Exports and Prosperity.
(New York Times.)

| (NeW York T1meSD
 With the recent slackening of trade and indus trial activity both here and abroad, it has become more difficult for American producers to find for egn markets for their surplus output. This is true both for farm products and for manufactures Dur ing the eight months beginning with last July our exports of cotton, for example, have been over a million bales less than in the corresponding period of the preceding year, and cotton exports incident ally have always been of the principal means by which we have paid for our imports. There has been similar falling off in the foreign de- mand for American wheat. The effect has appeared in the low prices prevailing for these staple farm products This in turn has curtailed the buying power of the farmers and has contributed further to the slowing down of business. It was not solely the big break in the stock market of last autumn which caused the recession; signs of a action in general business had appeared several months before the crash in Wall Street.
 The decrease in our foreign trade ill February was much more pronounced than in the preced- ing months. To find another February in which the value of our exports has been small we must go back to 1923. For the eight months of the current fiscal year the decline in exports, compared with year ago. has been approximately I$300,O0O,0o0, while the decline in imports in the period has been only $39 100000.
 The relatively larger decrease in exports than in imports is a matter which challenges serious consideration. Just becoming increas , lingy dependent upon foreign outlets for portion Iof our manufactures and materials because of our improved methods of production, these outlets appear to be growing less dependable. Any pro- nounced shrinkage in exports glut in the home markets, with lower prices curtailed production, unemployment and all the undesirable consequences which normally follow
 In the five years prior to 1929 the export trade Iof the United States subjected to unusual stimulus. In this period our loans to foreign countries each year considerably in excess of la billion dollars In 1929 however the flotation of foreign loans sharply curtaed and the stimulus to export trade, which in the preced- ing years had offset the restrictive effects of tariff legislation, reduced accordingly It is evident therefore that beginning to exper- fence for the first time something like the normal effect of the Fordney- -McCumber tariff on our foreign trade. It is hardly probable that shall continue to lend abroad at anything like the rate of past years. Foreign countries longer ir need of such huge amounts of American capital We shall undoubtedly remain creditor nation ano shall continue to place investments abroad but the abnormal situation which enabled to maintain a flourishng export trade in spite of the highes tariff in history is nearing it's end
 In short, at last confronted with the fundamental fact that if to continue to sel abroad on the scale to which have become ac. customed must be willing to buy abroad In the last analysis tax imports is always tax on exports. If we are to reduce surplus of agricultural products, materials and manu
 factured goods must develop trade policy which will enlarge foreign markets The protection
 ists who having things very much the
 own way in Congress, working toward an op lposite end and unwittngly threatening tn, lcountry's prosperity.