Evening star., 1945-11-25

Very slowly but surely the channels
of private international trade, clogged
during the war by myriad artificial
restrictions, are being cleared
This is evident from the latest Com
merce Department report on Americas
900 in September, a 10 per cent in
crease over August and a 48 per cent
rise of non-lease-lend shipments during
the average month in 1914. But COM
mercial experts here foresee long and
torturous road ahead before a normal
level of private trade is attained again.
In the view of American officials,
there are three primary "log- jams"
which must be cleared away before the
United States reaches the foreign trade
level of $4,000, 900 900 yearly which some
responsible economists believe is neces-
sary to insure this country's prosperity.
They are:
/. Export and import controls which
presently are maintained by all the
important commercial nations.
Q. The lack of dollar exchange in
virtually every foreign country.
3. The readjustment of abnormal ex-
change rates in a number of European
countries
Over Billion Monthly.
During the late war American ex-
ports reached level far higher than
they ever attained before in this coun-
try's history. Last year they averaged
s1,188, 100000 monthly However, the
obvious Joker" in that situation was
that they were accounted for almost
entirely by lease-lend shipments, which
represent either an outright gift or else
long-terIn note to the United States
Government.
While these exports represented an
immediate profit to the American busi-
nessman, laborer and farmer, in that
the Government paid the individuals for
the supplies, the gain for the public
at large was unreal, inasmuch as a
large part of them will be paid for out
OF the pocket of the American tax
payer.
The significance of the September
figures on foreign trade just published
is that while exports as whole Gnclud-
ing lease-lend) declined to $515, 900 900
go per cent below August and 81 per
cent below the 1914 monthly average),
private trade began to mount. This
healthy trend must be continued If the
world is to return to normal.
Need Dollar Exchange.
Not SO encouraging, however, is the
fact that imports into the United States
in September decreased to 1894 900 900,
representing per cent decline under
the August level of $3.50, ,OOo, 900,
although they were higher than the
1914 monthly average OF 1926 0O0, 900.
This is true, economists point out, be-
cause the primary foreign trade prob
lem of the United States now is to build
up dollar exchange abroad and (aside
from loans) this can be done only by
buying. the goods and services which
foreign nations have for sale.
To take up the three main obstacles
to the resumption of private trade ad
seriatum:
Trade and exchange controls were
set up during the war by virtually every
civilized nation, even the neutrals, to
protect their economies from the dan
gerous, abnormal economic conditions
that obtain during wartime. In the
case of the belligerents there was still
another motive-to keep their currency
and goods from falling into the hands
of the enemy.
Such controls in the United States
were administered during the war by
the Foreign Economic Administration
and the Treasury Department Today
the trade control division of the Com
merce Department still is regulating
exports and imports under a license
system, although its regulations are
being relaxed week by week and the
administrations aim is to end them
entirely as soon as that is feasible.
Seek to Avoid Resale.
One reason for the existence Of such
controls here even after the war Is that
under Office of Price Administration
ceilings, American goods may be bought
more cheaply than similar commodities
in other countries. Thus, II unlimited
exports of commodities were permitted
to countries with a large amount Of
shipping and commercial credit, they
might resell them to third countries,
destroying potential American markets.
Hence an effort is made to limit ex-
ports to the amounts obviously required
by the direct purchaser.
Secondly, articles in short supply must
be rationed in foreign trade until the
American domestic markets require
ments are met. -.......
But the fundamental aim of the ad-
ministration is to break down all such
artificial controls as rapidly as possible.
In the war-ravaged and even the oc-
cupied, though relatively undamaged,
countries Of Europe, the main obstacle
to the resumption of foreign trade is
their lack of exports with which to OBJ
tain dollar exchange.
In such countries as Yugoslavia, italy.
Holland, Poland and Greece the Nazis so
would be incompatible with their mil