Evening star., 1936-03-05
BY BLAIR MOODY.

This business of stimulating exports
to Spain, Switzerland and points East
may seem a long way off to the aver
age citizen. But its effect strikes close
to your home and mine.
What foreign trade means in the
everyday life of an industrial city like
Detroit, for example, is not so hard
to dramatic when it is done in terms
of Jobs. Leaders of the motor indus
try estimate that $4,000 men are en-
gagged directly in the production of
cars, parts and accessories for sale
abroad.
The number of export jobs" in the
motor plants could be, and has been,
much greater. Michigan's export
trade fell from $355,000,000 in 1929
to s4s,OOO,0OO in 1882, a neat little
decline of 86 per cent, which meant
an average loss of $63 for every man,
woman and child in the State.
Michigan's tumble, of course, was
not unique. 1t was typical. Between
1929 and 1882 exports dropped S708,-
100000 In New York. 1921 900, 900 in
California, $l72,0O0,0oO in Illinois
sI88, 900, 900 in New Jersey. $4,000
600 in Louisiana, s358, 900 900 in Texas,
s24l, 100000 in Pennsylvania and SO
on through the list.
Total Cut Worse Yet.
But Michigan's $307 100000 slide
does not tell the whole story OF what
the world trade war did to the motor
industry, for many cars are not de
elared for export until they reacn
the seaboard. In 1929 all motor ex-
ports reached the handsome total Tin
profits and jobs) of $54l 600, 900. 1t
was slashed to $76,OO0,000 in 1882 and
stood at 100000 in 1884.
Now the fact that the American
automobile industry has produced a
superior product at steadily dropping
prices is winning back its buyers
abroad. Its 1000, ,0O0-car export mar
ket of 1929, which faded to 10000
in 1882, was back to 100000 in 1885.
But this is only "teaser," in the
opinion of the industry's executives,
compared to what could be done.
In Germany, France, Spain, Po-
land and large section of Middle
Europe" says Edgar w. Smith, vice
president of the General Motors Ex-
port Corp, 'the importation OF
American vehicles is effectively en-
bargoed. In Denmark, Switzerland
and other formerly strong markets
their entry has been arbitrarily de-
limited. In only a few areas on the
European continent, such as Sweden
and Holland, has relatively full and
competitive opportunity been af-
forded."
Out of So countries which might
buy American automobiles, 40 have
some degree of exchange control, IL
have quotas limiting the number of
vehicles that may be imported during
given period, 8 require licenses
or permits before vehicles may be
purchased, maintain partial
or complete government monopoly,
2 require barter, or "compensating
exports" and one has a complete en-
barge against automobiles. In 13
important markets duties on low
priced American cars have increased
since 1929 anywhere from so to TOO
per cent.
France Limits Quota.
France, for example, has slapped
on limited quota, plus duties rang
ing from 100 per cent upward, so
that only 1859 American cars were i'm
ported In 1884, as compared with
$500 in 1929. Spain has virtually
shut out American cars by a tariff
OF $50 per cent and up, which is
double the duty on British and French
cars. Completion of a most favored
nation" treaty with Spain, now pend
Ing, will automatically slash the duty
In half.
1t can scarcely be considered sur
prising, therefore, to find the auto
motive industry lined solidly behind
Secretary Of State Hull's program of
trading away these barriers by re-
cprocal treaties. The automobile
men believe there is plenty of room
to make concessions in our own tariff
structure without tnjuring the inter-
ests Of American labor, the farmer
Or the efficient manufacturer.
An authoritative voice, certainly, is
that Of Alfred P. Sloan, jr., president
Of General MoSorrs.
Many think" says Sloan, chat
overseas business might well be
Ignored because it is a relatively small
proportion of our total business. This
Is erroneous. because it makes an i'm
portant difference in the degree of
our prosperity.
World trade is vital. Consider its
application specifically to important
individual groups of producers, par
dcularly farmers.
Cotton and tobacco, for instance,
involve large sections of our country