The potters herald. [volume] (East Liverpool, Ohio) 1899-1982, 1940-03-07
Economic +. F..
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The effect of the war abroad on
American business gradually becomes
clearer. And, for the most part, it is
different than was expected when hos
tilities began last September. Paul
Mallon recently published brief an
alysis of the situation, furnishing it
with facts of considerable interest.
First, war has upped our exports
but, curiously enough, the rise in
sales to belligerents has been less than
to neutrals. Total export rise is al
most 80 per cent, but increase in goods
going to Britain has been only 10 per
cent. Norway's demand for American
supplies has shown the startling rise
Of 144 per cent. Swedish buying is
up 81 per cent, Dutch AZ per cent and
Italian Al per cent. No one believes
that these countries are using all of
what they buy for themselves. Logical
jexplanation is that large part of the
purchases is being transshipped to
Germany, which is unable to trade di-
rectly with us because of the Allied
blockade.
In spite of the sharp total rise in
our exports, a comparatively limited
number of American industries are
booming because of it. Foreign de-
mand for agricultural exports, in
cluding tobacco, is dropping toward
the point Of non-existence. And,
strange as it seems, foreign buying
of automobiles and trucks, necessary
as these are to war, has shrunk ma
Iterially. Apparently the belligerents
are able to produce their own ma
chimes of transport, without spending
their carefully boarded gold for the
American product.
Biggest increase for any export
commodity is shown by aluminum-up
1923 per cent. That is completely un-
lderstandable, as aluminium is being
used more and more in planes and
other instruments of war. Aircraft ex-
ports have risen close to 200 per cent.
And chemicals and leather have all
shown advances of so per cent or
more.
The Allied purchasing commission
seems to be doing a capable job By
eliminating the competitive bidding
between France and England which
occurred early in the last war, it has
helped to hold prices down. And it
lis working efficiently with this gov
ernment SO that our own national de-
fense needs will not be impaired by
foreign buying.
War buying here will undoubtedly
increase as time goes on though no
sudden jumps are anticipated If COM
lmercial credits are given Finland and
China through the Import Export
Bank, tens of millions of dollars worth
of orders will flow into American in
dustry. We aren't experiencing war
boom, but we are making money out
of the conflict. Unfortunately, it
seems to be the verdict of history that
we or anyone else must pay through
the nose for such profits when the war
ends and the exhausted participants
must face the immense task of rebuild
| ing shattered economies.
X X
1t has long been said "Time works
with the Allies" That is certainly true
in one very vital matter-airplanes. 1t
is generally believed that Allied plane
production and purchasing has brought
British and French air forces very
close to those Of Germany, and that
by the end of the year the Reich will
be well surpassed.
In another way, however, time
works with Hitler. German technici-
ans and scientists, always among the
best in the world, have been sent to
Russia to speed up Soviet production
and to facilitate transport. The amaz-
ing ineffciency of the Russians in pro-
ducing and delivering the goods the
Reich needs has been one of Hitler's
most serious problems. In another
eight or ten months, the experts feel,
the German engineers will have eff
fected great change and supplies
will be flowing into Germany across
conquered Poland in steady and
heavy stream.
England is obviously extremely
worried by the apparent fact that
Hitler is getting supplies from the
Balkan countries which, being neu-
trails, can purchase whatever they
want from Italy, US, or anyone else.
And she is worried too by the poten-
tials of Russia as a source of food,
machines, oil and other necessary
commodities. This, the observers say,
IeXplains Britain's recent violations of
international law, and her refusal to
make amends to Norway for the Alt
mark incident. The Allied high COM
mand is apparently convinced that
technical rules cannot be permitted to
stand in the way of their prosecution
of the war.
Summer Welles, the Presidents s
peace emissary," certainly reached
Europe at discouraging moment.
Just about the time his boat was dock
ling Chamberlain was making his most
aggressive anti-Hitler speech, and
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