Evening star., 1947-09-04
BY the Associoted Press


declines in the volume of American
exports to dollar-short world mean
an end to that bonanza which in
recent months helped fatten the
pocketbooks of workers. manufac-
turers, farmers and businessmen?
Economists and foreign trade an
alysts differed somewhat today in
their answers but their views added
up to something like this:
1. Some exporters and manufac-
turers are bound to be hurt"
2. Some products now in short
supply, due partly to high export
demand, may be readily available to
the American consumer by the end
Of the year.
3. Some items, with exports cut
off. will become surplus and prices
may drop by the first of the year.
4. Domestic demand for others is
so high that if all exports stopped,
there would be no noticeable effect
here.
Many Plans for Help.
5. In the long run, the world will
have to get the goods it still wants
badly from the United States, as no
other country can supply them.
6. So many plans of help are
under way or under discussion
loans, Marshall plan, World Bank
financing, economic conferences
that the means to buy may be re-
stored before export volume drops
low enough to threaten business and
agricultural prosperity here and
cause loss of jobs on large scale.
What has the world been buying
from the United States?
Food, textiles, machinery from
tools to locomotives, steel and steel
products, electrical gadgets, radios,
cotton, tobacco, automobiles both old
and new, chemicals, rubber prod
ucts. parts, for machinery, cars and
appliances.
American exports hit their all
time peak in May, but have been
falling steadily since as more and
more items were added to the fast
swelling list of restrictions which
foreign countries clamped on impor-
tation of American goods.
Cut Buying in United States.
This reached a climax when Eng
land and France all but ceased buy
ing American products and Aus
tralia and Canada indicated they
soon would cut purchases drastically.
Foreign trade analysts expect the
down trend in exports to be acceler-
ated, with orders dropping of
sharply, although deliveries of goods
already ordered may continue
through the fall.
Most of the restrictions are aimed
at conserving dollars for the pur-
chase of essentials" England also
aimed to increase trade with ma
tions which will accept pounds and
to hold all importations from dollar
countries to the barest minimum
even in the purchase of food.
Essentials" are steel, machinery
and such raw materials as the dol
lar-short countries need to supply
their reviving industries-and, of
course, food and clothing and build
ing materials
The United States Department of
Commerce reported commercial ex-
ports at a peak of 81 1861 100000 in
May, but down to 81 ,20l 100000 in
June, the last month for which fig
ures were available Imports were
s473. 500 900 in May and $466, zoo, 900
in June
Dollar Drain Explained. .,
Economists pointed out that dur
ing the first six months of the year
exports were $7.558 600, 900, while i'm
ports were less than $2,863 900, 900,
leaving an export surplus of nearly
s4 ,696, 100000, which explained the
drain on the worlds dollar supply.
The effect OH specific American
industries of curtailed foreign buy
ing was summed up in this manner:
Textiles-Exports declined sharply
at the start Of the summer as more
countries took American textiles
off preferred lists and turned their
dWindling dollar supplies to buying
essentials" The industry expects
further drops in exports, just at a
time when domestic pipe lines
are becoming filled. If surplus
piles up and domestic demand drops
L off, lower prices may be in prospect.
Exports of cotton textiles totaled
$50 500 900 in May but only SGT 500,-
900 in June; wool textiles $500. 900
in May. $4,s00,0o0 in June. and
rayon textiles S28 100000 in May
against s21 100000 in June.