Red Lodge daily news combined with Carbon County news., 1933-10-25
OUR INCREASING IMPORTS

Some interesting figures are coming to light concern
ing our foreign trade. AT present the trade balance is
against us. In August the value of imports to the United
States increased $l3, 100000 over the imports in July, tot
aling $155,000,0 00. And the value of imports, it may be
added, was $24,000,000 greater than the value of our ex-
ports, bringing the largest unfavorable balance of trade
since March, 1926, when imports were heavy because the
tire manufacturers were stocking up on crude rubber. Au-
gust was the fourth consecutive month in which our inn
ports exceeded the imports of the previous month.
All of which, of course, ought to be interesting to our
friends, the free traders, who have been telling us for
months that our present tariff law has killed off our for
eign trade and that other nations cannot buy from us be-
cause we do not buy of them. In the last campaign two
OF the most important and outstanding promises of the
party now III power were that it would stand by the gold
standard and reduce the tariff. The record since has been
consistent In that We have walked. away from the gold
standard and have not reduced the tariff.
And yet, despite the fact that the tariff has not been
lowered, and few people thought that it would be, we
IND that our imports are growing. There has been no
magic lowering of barriers to bring this about. What
then is the cause! The free traders may attempt to ex-
plain the situation partially away by talking vaguely con-
corning the value OF the dollar abroad and so on. But the
TACT is that things are turning out just as the protection
lists have always said that they would.
Here is the reason: more than half of our imports. most
y raw materials, come in free of duty and have always
done so. Many OF the tariff schedules we have are as
sessed against what may be regarded as luxuries pur-
chased only by the rich and wellto-do in this country.
NOW when conditions are prosperous in the United
States we buy more raw materials abroad, and more lux
urles' to be used by our own people. That is Just what
has been happening in the four months ending in August.
IN which our imports increased. Four months before Sep
TENDER l was May | and it was about this time that our
recovery began to get under way. Prices of securities and
commodities started up, factory wheels began to spin and
tnere were more jobs and a general better feeling. The
cnange was immediately reflected in the buying power
u Ce American america people and our imports commence in
creaslng. Our cheaper dollar abroad did not bring this
about because the cheaper the dollar the more our i'm
poraers nave to pay for what they buy abroad, in terms
OF foreign money. The increase in imports was dne fol
ed States.
When our great home market is being supplied bv our
own industries, and things are humming, we need more
OF The raw materials which the rest of the world furnishes.
ana more OF the luxury and semi-luxury goods which
EUROPE sells us and which are not produced in America.
ms is why our foreign trade is always greater in times
OF normal prosperity, a condition which we have only had
IN the past when the American producer was being pro-
tected from the cheap labor and lower living c%onditionsI
Of the rest Of the world.