Milford chronicle., 1947-10-10

III
Business Week recently ran an
article whose title. ~. S. Exports:
End OF a Boom, outlines situa-
ten Of rapidly growing economic
Importance to this country and the
world.
Since the end OF the war, we
have been selling goods abroad at
a tremendous rate. Europe pre-
sehts an Unsuitable appetite for the
products of America, and so, to a
lesser extent, do the other conti-
nents. That appetite has not slack
ened In the slightest -but, even so,
our exports are now declining in
both volume and value, and every
one expects they will drop drasti-
cally in the future.
The reason for this Is obvious.
American exports have lately been
leaving our ports at the rate of
$16,000,000 year. On the other
hand, our imports have been at
the rate OF only $6.000,000, 900
year This means that the balance
OF the world has been operating at
a deficit OF $4,000 900, 900 year
In foreign trade with as alone. And
1t means that its dollar credits
have been running out alarmingly
fast, and that the bottom of the pile
is definitely in sight.
England. OF course, presents the
most publicized example of the
trend. The American loan of $S,-
750, 100000 was expected to last
through 1850, and possibly longer.
When Britain made her last with
drawal recently. the balance re-
naming was a mere 100000 900.
That is only enough to last her a
few months at her latest rate of
purchasing The result is that
she is freezing the dollars she has
left, and is cutting her purchases
In the u. S. to the bare bone Fur
thermore, she is having to follow
the same policy with other coun-
tries, in that intricate currency
agreements now in effect force her
to convert pounds into dollars, in
many cases even when purchases
q
What is true of England is true
OF much Of the world A number
of Latin American nations have
lately slapped severe restrictions
on imports, because their dollar
credits and gold stocks were be-
coming dangerously depleted.
The effect of this abroad will be
more belt Tightening, and a lower
standard of living. The newest
British ration cut is an indication
of what is happening. The effect at
home will be the loss of many bill
lion dollars worth of business.
Who will be hit hardest by the
sag in exports? The answer to that
may be the farmer. To take Eng
land as an example again, in the
first half of 1947 she bought about
$6O7 .000, 900 of American goods
Over 1892, 900 900 went for food
stuffs, and $77,000,OO0 more con-
sisted of inedible fats. Every coun-
try is making desperate efforts tc
become as nearly self-sustainine
as possible in food.
Some machinery people have re.
ported serious drops in foreign
sales. But, by and large, Europe
viii use every possible penny fol
heavy industrial equipment The
only hope for European economic
salvation is to rebuild her shat
tered basic industries, and she
can't get the machinery anywhere
except from us.
Obviously, the market for any
thing resembling luxury or non
essential item will practically van
ish.
All of this may be changed b.
future American legislative action
The Marshall Plan, for INSTANCE, in
wolves much food for EuropW a
well as durable goods. But, at best
it will be limited in scope. And
applies only to European countrie
not within the Soviet sphere of in
fiuence.
There is always the possibilit
of more American loans and cred
it's. But Congress will move slow
ly when it comes to this. There
feeling that Europe has not mad
the must VI the dAu We nave 6lFC
so far.
Perhaps the most remarkabl
proposal yet is Mr. Bevin's sue
gestion that the u. S. divide u
the Fort Knox gold in the intere:
of world recovery. One America
spokesman observed that thi
would involve giving the gol
away and then buying it back.
hardly seems feasible idea.
At any rate, exports are on ii
way down. This won't cause m;
jor upsets in this country so Ion
as domestic business remains
or about present record levels. B'
should U. S. purchasing power ia
in the home market, loss of expor
would really be felt.