Evening star., 1953-11-22
As Sales Abroad Drop
By Crosby S. Noyes

S'S~SI -
Economic experts in the for
eign trade field here are permit
ting themselves polite bureau
cratic chuckle over the cries Of
alarm from American manufac-
turerS prompted by a decline in
their exports to foreign countries.
In paticular, they are amused
by the general belief that the
tapering-off of foreign economic
aid from the United States to its
allies is a major cause of the
present slump in export orders.
Apparently, these manufactur-
ers, who were among the loudest
and bitterest critics of Govern
ment "give-away programs, p"
didn't stop to think that most
of the dollars given away were
finding their way home again in
the form of orders from Ameri-
can industry. And their cur
rent protests are getting a slight
ly unsympathetic reception here.
Outline of Picture.
Briefly, the American export
picture is this:
American sales abroad climbed
rapidly during the reconstruc-
tion years following World War
II, reaching a peak of over SIS
billion in 1851. Last year brought
a slight drop, but the total stayed
almost at the same level be-
cause of heavy shipments under
the military aid program.
Today, with this prop being
trimmed away, a real slump has
started. The figures show an
overall IL per cent drop in COM
mercial exports for the first eight
months of 1858, compared to the
similar period last year. Agri-
cultural exports were down "a
per cent for the period. Nom
agricultural products, excluding
military equipment, dropped of
seven per cent.
Hardest hit are makers Of ma
chine tools, automobiles and the
grain growers. Sales of gasoline
and television sets are still on
the upgrade. In all. out Of 81
commodity groups listed by the
Commerce Department, 81 re-
ported a fall in foreign sales in
August.
Taken in proportion to the
whole economy. of course, these
figures aren't too alarming. For
eign trade accounts for only 5
per cent of the total national
output. But, judging from the
reports, the affected few are Seri-
ouSly upset.
Europe Able to Buy.
Actually, according to the
Government experts, the drop in
American economic aid is not
primarily responsible for the
slump. Instead of being scarcer
than during the Marshall Plan
years, gold and dollars are more
plentiful in Europe today than
at any time since before the war.
Europe's gold and dollar hold
ings stand at over $11 billion.
IF Europe had to buy from this
country, it could.
7 The fact is, however. that it
doesn't have to buy. Primarily
because of the success Of the
American economic aid program.
many areas of the free world
now are able to compete with
United States products on the
world market.
German industry is booming
and cutting into American buSi-
ness sharply, especially in the
area of machine tools, machin-
cry, electrical products and
chemicals. Britain is competing
for customers looking for elec-
trical goods. aircraft, heavy con-
struction and farm machinery.
The demand for American agri-
cultural products has diminished
in proportion to the revival of
other producing areas. Even
Russia is getting into the act
with exports of wheat, barley,
some machinery, certain metals
and oil.
Results Of Aid.
In short, the pinch that Amer
lean exporters feel today is the
payoff on all that this country
has beentrying to do econom-
ically for the free world since
the Marshall Plan was launched
in 1948. The competitive situa-
ton that now exists has little
direct relation to the smaller
number of aid dollars being
shipped out of the country.
To be sure, if the United
States were willing at this point
to go on providing massive eco
nomic aid to foreign friends,
there would be some increased
demands for American export
goods. There would also be
more rapid increase in gold and
dollar reserves as some of the
profits socked away. But it