Imperial Valley press., 1942-05-22
CAPITAL TALKS
by
Peter
Edison

This is supposed to be Foreign
Trade Week" and if in the same
breath you ask What foreign
trader" or "Why?" at first they
might seem natural though lead
ing questions. Exports and imports
are now under strict government
control and licensing The dollar
volume of exports for this year is
estimated at 81 billion as against
IS billion for 194l. giving the
United States a 81 billion favorable
trade balance, but the only stuff
going out is lease lend aid and
the only stuff coming in is raw
materials for war production Pri-
critics are over everything. Ship
ping space is practically unobtain-
able Freedom of the seas Doesn't
live her anymore. Foreign trade in
its usual meaning is Knocked out
for and by the war and no one
knows when she will come to. So
why celebrate?
But there is life in the old
girl yet and while there's life
there's hope, and it's the flu
ture. postwar pOten TALLY
that makes this years observ-
ancc of Foreign Trade Week
more than mere weeping at
the bier.
World trade ANALYSTS in the u S.
Bureau of Foreign and Domestic
Commerce who have watched for
eign trade rise and fall eveA since
before the last war see in the
present world situation, lousy and
messed up as it is. the makings OF
some real business. And they are
realistS enough to believe that they
are not just whistling in the dark
to keep their jobs
Foundation of the whole thing is
the fact that trade agreements I'M
der Secretary of State Cordell
Hull's program are still being made
with those nations with which the
U. S, still maintains diplomatic re-
lations This long-range US. policy,
which is Hulls pet idea for solving
the worlds commercial wars by per-
hitting the free flow of interna-
tional trade, is also set forth in
principle in the Atlantic Charter of
war aims and it is therefore the de-
clared basis on which business be-
tween nations will be established
after the war.
ECONOMIC CHANGES
But aside from this matter Of
principle a number of economic
changes are taking place during
this war and they all point to ex-
panding markets for good mer-
chandising, which is the making
of bargains that are good for the
buyer as we'll as the seller Among
them, these:
Nations that were once large
ly colonies, producing raw ma
terials, have been forced into
increased industrialization. Au-
tralia, India, even China, have
had to start manufacturing
some of their own war sup
plies. As these industries grow,
in a postwar period they will
be capable of absorbing larg-
err part of their labor force.
They will shift from war to the
production of consumer goods for
their own people, and this expand
ing business at home will become
an increasingly large market for
American machinery. Any increase
in the standard of living of these
countries which before the war
were largely agricultural means an
! increased market for American
goods.
| DIENTV M nE.z>
Furthermore, in all these COun-
! tries, and particularly in Latin
America, a huge postwar purchaS-
ing power is being built up through
credits advanced for their own in
ternal development and through
US. buying of strategic materials.
| That money can't be spent now,
because of shipping shortages. 1t
will be loosed for buying American
made goods the minute the war is
over What it points to, what it
should be directed toward, IS the
maintenance of full employment in
the us. after the war, to produce
goods for this big world demand.
The shipping will be there,
too. to haul the goods. The
huge increase i'm American mer-
chant marine To haul war sup
plies will leave this country .
with the greatest cargo fleet
in the world. The United States
will be needing huge quantities
of raw materials like rubber
and tin and fibers not produced
i'm this country. All the ele-
ments are there for plenty of
deals.
| WASHINGTON