Evening star., 1939-11-28

OF LOtal Un1Ce0 6CateS exports OF
lard, removed its 10 per cent duty
on this product and established
liberal quota for hams. The United
Kingdom imports Of American lard
and hams for the first six months
of the agreement were the greatest
since 1895. Cuba, the second most
important foreign market for Amer
ican lard, reduced its duty by sue
cessive stages from a rate equivalent
to 9.6 cents pound to is cents.
Cuban lard imports from the United
States increased from $5O0,000 In
1888 to 100000 in 1888.
Wide Range of Products Affected.
Concessions have also been OBJ
tanned on wide range of American
manufactured products. Among the
important groups of commodities
benefited are iron and steel semi
manufactures, automotive products,
electrical apparatus, industrial, ag-
ricultural and business machinery,
rubber products, chemicals, paints
and allied products, hides and leath-
er products, certain textiles and
various American speciality products.
Belgian imports for consumption
Of automobile parts for assembly
totaled $8,000,0O0 in 1888, as COM
pared with $2,7O0,00o during 1884.
Canadas imports of passenger au-
tomobiles and chassis increased be-
tween 1885 and 1888 from $1,700 900
to $9.200,0O0.
These and many other increases
in the foreign trade of the United
States with trade agreement coun-
tries have not only increased the
prosperity Of those portions OF our
agriculture, industry and labor pro-
ducing goods for export, but have
also, by increasing employment and
consumer purchasing power. bene-
fitted producers and workers engaged
in supplying the domestic market.
But while our export trade is q
very important factor In our do
mestic economic activity, so that
prosperous exports are an essential
element in prosperous general
business situation at home, we must
not permit an undue concentration
in the export side of foreign trade
to obscure the larger significance Of
our trade with the world The con-
tribution Of our foreign trade to our
economic welfare is in the last
analysis similar to the contribution
Of trade between regions within the
country it makes possible higher
standard of living than would be
the case without this exchange Of
products
Our foreign trade enables us to
concentrate and specialize somewhat
more than would otherwise be pos
sible in those lines of production
in which we. are most. capable and
naturally best endowed. The re-
sultlng larger return for our efforts
is shared by the consumer and the
producer. And by exchanging with
other countries the excess of what
we produce beyond our own needs,
OF the things We are most capable
and best endowed to produce, we are
enabled to enrich our own lives and
further raise our own standards.
Widespread Degree of Caution.
This fundamental basis of our
foreign trade should always be kept
in mind, and particularly now when
1t may seem to be obscured by the
| distortlng effects of warfare in othe,
parts of the world. Fortunately oul
| country is, I think, more wide awake
and Informed than 1t was the last
time. 1t is encouraging to note the
widespread degree of caution ex-
pressed In business circles against
plunging into artificial and ephem.
eral expansion based on the ex.
pectation of belligerent purchases
without due forethought for the
aftermath. Let us not allow false
hopes. based on such increased ex.
port business as may come to us
through stimulated diversion OF
trade, obscure from our vision the
real nature of profitable foreign
trade. and the necessity of pursuing
a sane and sound commercial policy
which will bear lasting benefits
lasting because of their being mu-
tually profitable and constructive
Although the war may create a
profitable market for some of our
products, no one could be so foolish
as to imagine that it will provide
lasting basis for prosperity. Far
from removing the conditions which
have created an urgent necessity
for our trade-agreements program,
the war will surely create an even
more Imperative need for agree
ments between nations providing for
the reduction of excessive barriers
to trade. When the war is over. we
will be faced with the problem of
restoring export outlets for many
branches of our industry and agri-
culture whose exports may be cur
tailed as a result of the war, and
OF creating opportunities for the
opening up Of new channels of trade.
Whatever the consequences of the
war may be, one thing is certain:
1t will result in serious economic
dlslocations. and craftsmanship of
the highest quality will be required
to effect the revival OF healthy
international economic order.
1t is not possible to anticipate
exactly how this war will affect our
trade. Although the present war re-
sembles in some ways the first World
War, there are important differ
enceS.
So far as the trade of our own
country is concerned, the most con-
spicuous and probably the most i'm
portant result of the last war was
an enormous increase in our export
balance of trade. For the decade
before 1914 our exports had exceeded
our imports by about $500,OOO, 900
annually, on the average. During
the war and Immediately after it,
our export surplus increased rapidly,
reaching peak of $4,000 900 900 in
1919.
We have no reason to assume
that the present war will give rise