Evening star., 1947-06-14

bankrupt TO buy from us.
A compilation in the June bulletin
of the National City Bank of New
York arrives at the astounding con-
clusion that our exports now are
running ahead of imports by
$4,000, 100000 a year. This means
that foreign nations are dissipating
their buying power, beyond exports,
at rate of billion dollars month.
Latin American Buying.
The disparity by no means is
confined to the War-stricken coun-
tries of Europe Latin America,
which Immediately before the war
sold to the United States on the
average $58,000,000 more goods a
year than they bought from us, cur
rently is buying from us at an
annual rate of 81 sos, 600, 900 over and
above the goods sent in exchange.
Our prewar trade balance as
against Canada averaged $109, 900 900
a year-a differential which was
more than Offset by Canada's sale
of foodstuffs to Europe in excess OF
her purchases from that continent.
But now Canada is buying from lis
at rate of $920,000.000 a year in
excess of her sales to the United
States, while her European Gus
toners can no more pay her than
they can pay us.
Before the war Brazil, because of
her huge export of coffee. always
had a substantial balance of trade as
against the United States. But
Brazil now is buying from us at
more than ten times the prewar
level and the same is true of Mexico,
Argentina and other South Amer
lean countries. Cuba, Colombia and
El Salvador are the only American
countries with an export edge over
the United States.
Far East Purchases Soar.
In times past, the Far East (espe-
cially China and India) had a favor
able balance as against the United
States but now the overall Far
Eastern purchases from us are run
ming $7l0,000,000 year in excess
of our compensatory imports.
AS for Great Britain and conti-
mental Europe, excepting Russia,
the excess of our exports over i'm
ports right now is at the rate of
$4,52e,000 900 year.
And even Russia is buying from
us S147,0oO,O00 worth of goods in
excess of our purchases from her.
The National City Bank bulletin
mentions wool, silk, furs, textiles,
liquors, leather goods, diamonds and
ferro- alloys among commodities
which we presently are importing
even at lower rate than in 1916.
That condition, of course, is due
solely to the fact the exporting
countries simply haven't got goods
to offer
Silk, before Pearl Harbor, ac-
counted for 80 per cent Of japanese
export to the United States, but
silkworms were eaten and mulberry
trees used for firewood during the
war and, in consequence, Japan now
has little silk to sell. The British,
still with skimpy food ration, can't
spare breadstuffs for whisky manu-
facture.
Way to Alleviate Situation.
The simplest and most economical
way to alleviate this situation is to
stimulate American buying of for
eign goods. Certainly, We should
not double an already sky-high
tariff on wool, as the House has pro-
posed and we might we'll remove the
tariff entirely from furs, liquors,
diamonds and other high-priced
luxury goods specially useful in
bolstering foreign exchange.
Certainly no outside nation is in
position at present to ship enough
of that sort of goods to the United
States market as seriously to in
terfere with home production.
And even with the utmost that
can be done to increasing imports,
American taxpayers inevitably will
be called upon for uncounted addi-
tional billions to provide purchasing
power to foreigners until they can
regain their economic feet and make
things for themselves.
North American Newspaper Alliance