Milford chronicle., 1947-07-18
''DoUar shortage y
DA n G {: R

exports for his moteriql existence: and every
third or fourth wheot former is vitollY dependent
on whedt exports. A sharp drop in exports viii
directly affect the jobs and income of all Amer
icon workers. formers and business men.
The Wall Street Journal recently front PACED the grow
ing dollar shortage" abroad which threatens to turn
into dollar famine by the end of the year. The article
states:
"It's (dollar) famine that will hit the American
business man hard. U.s. exports currently equal
nearly 1919 of national income the top 1919
that could mean the difference between prosper
ity and trouble. Ready world markets had been
counted on to take up the slack as industrys pro-
duction catches up with domestic demand.
"In plain language, the so-calIed dollar shortage
means that foreign nations are not producing and
selling to the US. enough goods to pay for US.
goods shipped abroad. In short exports are siphon-
ing American dollars out of world markets faster
than we pump them back by buying abroad. This
is the substance of series of foreign economic
surveys being prepared for the White House by
the State, Treasury and Commerce Departments
This year the experts figure that the United
States will export SIS billion of American mer-
chandise. 1t will buy only about 81 billion of
foreign goods. That means that us. customers
overseas will run a net deficit of about So bl1on
this year on their trade balances
"As one State Department official put it: If that
keeps up very long our customers will have no
money left to buy with
Currently foreign trade is again accounting for
than 1920 of total production If it drops off
much as 2 or percentage points, the experts
say, it will cut big swath through the postwar
prosperity especially if the US. is already hav-
ing mild recession at home
"To export proftably the US. must either keep
imports at high level too, else find other
way to get dollars abroad. Otherwise, the foreign
customers simply run out of the means to buy, no
matter how badly they want American goode,
"The (do1lar) shortage will become acute first in
the European countries probably in the fall The
sterling area and Latin America will be in real diff
fculty next winter and spring. according to the
calculations, unless something is done"
What are we doing now to prevent thi
sharp drop and the resulting unemployment in th
making? 1t is certainty that this Nation the world
most powerful cannot afford to sit back doing nothin
while the elements that make for economic sickness
are permitted to go unchecked.
We believe the Congress of the Unite,
States should Immediately take two broad steps NEE
the impending situation
1. Develop an American program of economic in
veStment and assistance for other nations con-
ssting of credits grants, and the purchase of
strategic and critical materials in large enough
amounts to help these other nations to help
themselves in practical way in their recon-
struction so that they can effectively contribute
to the prosperity and peace of the world.
2. Develop an American economic and invest
ment program for the United States calculated
to increase our own national strength and
wealth through building and developing our
schools, our houses our hydro-electric power,
and our other resources. For on Americas
strength and prosperity depend the peace and
prosperity of the whole world
The time for action is now. Delay il
luxury that the American business man, the America
farmer and the American worker and miner, cam
afford.
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