Evening star., 1934-02-06

tariffs, embareoes, quotas and the
like
MAY Have to Make Loans.
American goods exported abroad
must be paid for eventually either
with foreign gold or with foreign
goods shipped into this country.
Either that. or there must be rep
etition OF American lending to for
elgn customers 10 enable them 10 buy
goods for which they have not been
able TO pay. Since the United States
has had most Of the gold in the
world, and other nations. with the
exception Of France. which has had
a good share OF the gold. have mad
little gold. and since there has been
high tariff wall around this country,
foreign payment for American eX
ports has been exceedingly difficult
1t is clear that the foreign countries
taking American exports must pay
for them in gold OF goods Since
they have not the gold, they must
pay in goods
Americas huge export trade, which
reached S5,l57 100000 in 1881 was
built up in the boom years following
the World War largely through the
extension of credits to foreign buyers
When the foreign customers could
not pay. nor pay the interest on their
debts, it was practice to add the
interest to the debts and go on trad
ing Eventually this lending process
had to come TO an end.
Would Wipe Slate Clean.
It is proposed to the administra-
tion now in some quarters that the
slate be wiped clean: that these debts
be largely forgiven. SO far as America
is concerned. even if the Government
has to refinance them. In addition,
it is proposed to set up Government
agencies to finance new and tddl-
tional export trade to foreign coun-
tries. The loans under this plan
would not be made to the foreigners,
but to American exporters and pro-
ducerS. But there seems 10 be no
more reason to believe that the for
eigners would be able to Jay the
American exporters in the future
than they have been able TO meet
their obligations in this country in
the past. Yet it is planned now to
begin the same old game all over
again. perhaps in a differen: guise
The only solution of the problem
seems to lie in the admission of for
eign goods into the United States in
quantities approximately sufficient to
make it possible for the foreigners
who buy American goods to pay for
them. That means lowering OF
trade barriers. both by this country
and its foreign customers. And that
is what the Commercial Policy Com
mittee is proposing.
1t is explained that results can be
accomplished which will injure Amer
lean producers and American labor
little. if at all. by making agreements
for the entrance into this country of
goods that are not made here, but
which are made abroad, with the for
eign nations agreeing at the same
time to permit the entrance of Amer
ican goods which do not necessarily
compete with their own producers.
Lace curtains, foreign wines of certain
hlIlOS are among Tie dTtlClcS WHICH
are mentioned as examples of what
may be done along the line of ad-
mitting foreign goods without hurt
to American producers.
Export Trade Small Part.
In those quarters advice is given
to pay attention to domestic markets
alone. 1t is said that the export trade
of the United States. after all, is
very small percentage of the trade
of the country and can be neglected.
The Department Of Commerce makes
estimates of the relation Of exports
to the total production of movable
goods in this country. The last esti-
mate of this kline is for the year
1881, and shows the ratio Of exports
to total production of movable goods
was IA per cent.
While this may appear to be
small proportion-and the proportion
may have shrunk still further with
the huge falling off of export trade in
the wears 1892 and l933-When indi-