U.S. FOREIGN TRADE

Dominion, Volume 14, Issue 306, 20 September 1921, Page 7

U.S. FOREIGN TRADE

A SENSATIONAL DECLINE DECREASE OF OVER 3,000,000,000 DOLLARS Washington, August *B. The decrease of over 3,000,000,000d01. in the value of tho country’s foreign trade during the last fiscal year was ascribed by the Commerce Department to-day to the world-wide trade depression coming as an aftermath of the.war. Lower prices rather than diminished quantities were ,to a great oxtent responsible for the decrease in exports, the Department asserted in a statement reviewing tho year’s foreign commerce. Tho total value of the foreign trade of the country dropped from 13,317,009,900 <lOl. in tho fiscal year 1920 to 10,171,009,000d01. in 1921, a decrease of 23.8 per cent., tho statement showed. Imports dropped from 5,238,000,000d01. in 1920 to 3,654,000,000d01. in 1921, a. loss of 1,584,000,000d01. or 32.2 per cent.; while exports amounting to 8,109,000,000 dol. in 1920 against 6,516,000,000d01. in 1921 decreased 1,593,000,000d01., or 19.6 per cent.

Aside from lower prices, other causes contributed to the small foreign trade totals, the Department declared, assorting that tho advantage enjoyed by this country during and after the war of being the only country able to supply tho needs of tho others has passed. Crops are now being raised, on the battlefields of the devastated, regions of Europe, tho Department said, the pursuing needs of manufacturing industries abroad for raw materials has been filled and the United States must now compete in the world markets in prices and terms with the other countries.,, "The foreign exchange situation,’ the Department said, "also had an adverse effect on American exports last year. With exchange rates of foreign currencies depreciated to a point which marie prices in dollars prohibitive, with declining imports, the impossibility of settling tho balances already due the United State in gold, the difficulty of arranoIng further credit facilitlea, with canc*Llation of orders, rejection of 8 0003 ready shipped and collection drafts dishonoured, -it was impossible for exports to continue at the rate of 500,000,000d01. or 600,000,000d01. a month, to„which they had grown during the war." Two-thirds of the year's decline in imports, the Department asserted, was in raw materials, as American factories, running only part time or entirely shut down, stopped buying foreign hides, wool, cotton, silk, rubber, and other materials.