Evening star., 1939-11-28

Of foreign markets would also re-
suit in curtailment of the domestic
market. Apart Of the production
for domestic consumption is de-
pendent on the purchases Of those
industries and their workers who
are engaged in supplying goods for
the export trade. Nor would the
decrease in domestic business ac-
tivity and employment resulting
from export losses cease at that
point. 1t would continue the cul-
minative effect to further stages
OF economic depression. Presum-
ably a new equilibrium in the do
mestic economy would eventually
be reached, but only at the cost Of
painful adjustments.
Another important aspect of the
bearing of export trade on domestic
economy involves the possible effects
Of export sales on the domestic price
structure. Foreign sales give rise to
claims for payment from abroad
These claims, when liquidated at the
domestic banks may result in an in
crease in the volume or circulation
of money at home, thus tending to
cause a rise in the general level
of domestic prices and thereby stim-
ulating business activity.
Increases in export trade stimulate
domestic activity. Under the trade
agreements program our exports
have increased Although it is al
ways difficult to isolate the effects
of any single factor where so many
are operative, We have conclusive
evidence to show that our trade has
improved faster under the agree
ments than would otherwise have
been the case.
In 1884 and 1895, which may be
considered as substantially pre-
agreement years, exports from the
United States averaged S2,200,00o,-
900. In 1887 and 1888 with II agree
ments in effect for most of the
period, exports averaged $4,000, ,000,-
900. 1t is significant that during
the post-agreement period, 1878
exports from the United States to
countries with which reciprocal
trade agreements were in operation
showed an increase of 612 per cent
against an increase of 379 per cent
in exports to trade agreement
countries.
1t is significant. moreover, not
only that exports from the United
States to the Enlargement coun-
tries have gained relatively more
than exports to non-trade-agree-
ment countries, but also that the
agreement countries have generally
increased their imports of American
products more than they have in
creased their imports of the prod
uctS of other countries. For ex-
ample, in the three years 1886 1898
Of the first agreement with Canada,
that country's imports from the
United States averaged AZ per cent
greater than in 1934-35, compared
with an average gain of % per cent
in Canadian imports from ether
countries.
Canadian Imports Increase.
Total Canadian imports from the
United States increased from $780,
100000 in 1885 to $424,000,0OO in
1888 a gain of 81 per cent. OF i'm
portance is the fact that imports
from the United States Of products
on which Canada granted duty re-
ductions showed an increase of IS
per cent in 1888 over 1885. On an
average for the three years of the
agreement, 1936-1938, Canadian i'm
ports from the United States were
80 per cent above the 1885 imports.
Cuban purchases from the United
States have more than doubled since
the agreement went into effect. In
1886. 1887 and 1898, Cuban imports
from the United States were valued
at $66,00O000, at $89,0OO,00O and at
SIS, 100000, respectively, represent
ing gains of 1893, 292 and 231 per
cent over 1888. During the same
years Cuban imports from other
countries were only 81, 107 and 81
per cent greater than in 1888.
Altogether, in the % trade agree
ments concluded thus far, the
foreign governments concerned have
reduced duties, agreed to bind the
existing duties or the free entry, or
have granted other concessions,
such as enlarged quotas, on hum
dreds OF commodities which we ex-
port.
On the basis of 1887 data, foreign
countries with which trade agree
ments had been concluded prior to
November l, 1899, granted conces-
sions of some kind on about three
quarters of their total imports from
the United States of agricultural
products and on almost one-half of
their total imports from the United
States of non-agricultural products.
For all products combined, 56 per
cent Of these agreement countries
imports from the United States have
been the subject of concessions to
the United States.
Hundreds of concessions in one
form or another have been obtained
for American farm products in the
agreements thus far concluded. Let
me illustrate by describing conces-
sions and increases in our foreign
sales of meat products.
Seventeen countries, plus many
British colonies, have granted re-
ductions, quotas or bindings on
various American meat or other
animal products. Canada has made
reductions ranging from IL to Is
per cent on fresh meats, bacon,
ham, lard, cured meats, extracts
and other meat products. Canadian
imports of animal products from
the United States increased in 1888
over 1885 by nearly $1,25O,00O.
Again, the United Kingdom, which
in 1887 purchased MOI, than half