Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-18
World Trade and the Pound

port Of such commodities.
The result has been a vast diminu-
ton in world trade measured in dollars
or pounds or any other currency. For
instance, in 1929 the total imports of 81
countries were $4,000 100000. The
next year, 1890, there was shrinkage
of $4,000 900 900. Our own imports be-
tween the same years went down ST.
300 100000. At the same time our ex-
ports to other countries decreased ST.
400 100000. The same thing happened
to practically all nations, the only diff.
ference being that We nevertheless had
favorable balance of trade amounting
to $750.000 900 while Great Britain had
an unfavorable trade balance of nearly
So. 900, 000, 900.
Notwithstanding and since the war
our own investments abroad have
grown to approximately SIS 900 900 900.
Some of these investments are not par
ticularly profitable now, just as some
that were made here in the United
States have resulted in a loss. How
ever, Americans are still drawing mil
lions of income from these foreign in
vestmentS
OF about s1l 600, 900 900 of monetary,
gold in the world, We in the United
States possess nearly Sc, 1000 600 900. Our
own currency therefore Is on a firm
and stable basis.
In August Of this year, for the first
time since 1926 Except for the one
month Of May, 1920, our imports ex-
ceeded our exports, but the unfavorable
balance Of our world trade for that
month was only about 81 100000. But
from January to September we had
sold goods abroad amounting in value
to $2l4,000.o00 more than we had
bought abroad. Though We are ac-
a hmm oil nf no wiz
prohibitive tariff. other nations we're
able to sell us Sl66,000,000 of goods In
August of this year. against a total bill
of goods of Sl65, 100000 that We sold
the world And We financed other ma
tons to the extent of $905, 900 900 of
foreign loans publicly offered in the
United States during 1880.
Buy From Many Countries.
We were and are buying freely and
without restriction from many coun-
tries. though many nations have set I'D
barriers against our goods and those Of
other countries. For instance, as Dr..
Julius Klein, Assistant Secretary Of
Commerce, pointed out some time ago,
more than 10 per cent Of our imports
from Latin America are on the free list,
paying no duty whatever. Billions, not
merely millions, of American dollars
dustrieS OF Central and South America.
Now, what do all these figures mean
in the main, if anything, the casual
reader may ask?
They mean, I should say, that world
trade goes on and will continue to 20
on regardless Of unfavorable currency
and other situations.
The pound has fallen; sooner or later
1t no doubt will be established at Q
I0UHr 1nUlI a. 11I i
certainly the sooner currency stabiliza-
ton throughout the world can be
achieved, the sooner shall we recover
from our present difficulties.
but Whatever occurs, men will find
the means TO exchange the products of
one corner OF the earth for the prod
uctS Of another
In the first half of this year. for in
stance. we sent abroad 1888 900 0Oo
pounds Of manufactured cotton. We
mad to sell it at price that was too
low for the well-being of our cotton
growers; nevertheless, there was a mar
Ket OF some kind for this American
proouct, and money coming from abroad
10 pay Tor our purchases in other lands
we also exported 259, 100000 pounds of
leat tobacco. Other nations bought onr
copper-262, 900, 900 pounds in the first
SIX months of this year. They pur-
CHASED 1890 American radio sets in
the same time, large quantities of other
eIectrlca! machinery, $4,000, 900 SQUARE
yaroS OF American cotton cloth. lard
chemicals, hams and hundreds of other
pTooucts OF our farms and factories
meantime, the nation which in 1929
spent S9OO0,000,000 for So-called lux
urles In retail stores, for automobiles
JeWelry, radios, candy, flowers and soft
drinks. is continuing during 1881 to
De one OF the worlds best markets for
the products Of other countries-iust
as it Will be in 1882 and the years be-
yond.
Our high living standard, reflected In
Lne large use OF automobiles, means to
Great Britain that we are the largest
ana pest market for the rubber OF the
East Indies. The factory selling value
IN 1923 OF the products of our manu-.
featuring plants in the rubber tire and
00o,O0o
Coffee Imports Increase.
Great Britain has important invest.
ments In Java and other Far Eastern
cofee producing regions, and in South
America, as have other European
nations. Our coffee imports during the
first six months of this year were 972..
$4,000 pounds, or IS per cent larger
than last year and % per cent above
the five-year average.
The United States is in the business
OF selling other nations whatever we
have that they may need or want. just
as they are in the business of selling
us all of their products that we can
or will absorb. Other countries, as w.
l.. Cooper, former director of the
Bureau of Foreign and Domestic Com
merce of the Department of Commerce,
has shown, are far more dependent on
their export trade than is our own land.
Yet while Americas export trade for
years has represented only about 10
per cent of our production. it never
theleSS is vitality important in such
commodities as cotton and copper.
In the Department of Commerce we
are leaving nothing undone that pos
Sibly can be done to further the develop
ment of foreign markets for our pro-
ducts. During the fiscal year 1881, for
instance, the bureau performed almost
100000 services to $4,000 American
firms. About 1000 Of these voluntarily
reported that during the year they had
benefited in savings and increased sales
from the bureaus services to the extent
of more than $57,000,000
1t will take more than failure Of the
British pound to maintain its old gold
value to Stifle American energy and in
itiative in developing foreign trade.
And Great Britain. whose empire is
worldwide, will find the means to con-
tinue commerce with the remotest Sec
tions of the earth, just as France, Hol-
land, India, China. Japan, Germany
and other nations will continue to send
forth their products and to buy what
others have to SELL The world has
better, swifter means of communication
and transportation than ever before.
It's people have higher standards of
living, greater wants and desires. A
great need now is for better financial
structure, both in domestic and inter-
national commerce.
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