Show BABSON PRASES EXPORT RT STATUS STATUS Sees Continued Gain Gaul So Long as mi U S Buys SOI I BondS BABSON DAnSON PARK PAnKo JoI Flo Feb 1 Roger W Babson In his weekly statement toda today e on our exports and ano Imports of or Inflation exist In so many manyI I other lines It I li Ii encouraging to see se our for foreign foreign trade devel developing so soI I steadily and ani naturally EV Every r year since 1022 1922 shows a healthy The continued 1 decline so 80 m in miny any ny economists t ed cd would follow the war did not occur Mr Ir Baboons official state slate statement meet ment Is as follows As As 5 shown hown by the official roy gov- ROV eminent figures OUt our Hales sales of mei mci abroad tor for the year 1925 1025 S mounted 1 to about five tIo billion dol dollars lam lars These figures exceed 1 11 previous years ears excepting for tile war period from 1916 UK through 1920 Furthermore when hen the th vol- vol vol volume ume rather than the value of goods IS I considered we w find 1925 even enn exceeding some of these pak pak years ears This Is due duo to the 10 declIne lit the prices of ot commodities during tho ho past six year years urs This of e Is II encouraging because prosperity ultimately depends upon the mount amount of ot commodities exchanged rather than their prices Al- Al Although Al Although though farmers may prefer preter a small crop rop and high prices yet the th world an 08 a 0 a whole Is far tar better oft off with a large crop rop and medium prices People an cannot not eat or wear figures Lumber i Is needed to shelter us and cotton colton are needed to clothe us and f food od Is needed to toto toto toto to feed ed us Hence when m business conditions on one 1 give prime Importance to th the volume of oC produced and consumed 1925 25 SHOWS GAIN Io Upon analyzing our sales abroad we find them roughly di- di di dl divided vided s as follows VALUE Y OF EXPORTS Million Dollar vu vu 1924 1925 and products Vegetable food rood products Other vegetable g table products 68 Textiles and wool 1144 1144 1212 Wood and paper Metal and products Nonmetal minerals Machines and vehicles 49 71 Chemical products 88 9 94 f I r exports re-exports In addition to noting how our exports are arc divided It Is also In ln K tl-r tl to note In what the th great great- treat cst I st gains were ere when comparing 1925 with 1024 The greatest ad vanco nd-vanco vance vanco of ot all was In la automobiles end machinery ry shows a gill gain II of over 30 per cent The next gr greatest test Improvement came cam In Inc c chemical products which showed a again again aCain gain of ot about 13 11 1 per cent Nn Ni cante carie a a gain In textiles of ot about J 11 1 per cent and a similar I in 10 metal products Of 0 course courso this loes not mean menu that we are export export- exporting Inc export Ing chemicals to Europe nor are arc export I we exporting textiles to England This gain caIn In the business of these Industries has been hen brought about by developing exports to South America and the th Orient Of course course the exportation of automo automobiles biles has been to England and Europe South America the th Orient lIt and In fact tact to the th entire world In my travels travel Into the very heart o of South America and Asia I have ve found In the th poorest Indian hut a aSInger er Singer sewing machine a a Standard Oil can and a a flour bag labeled with the name of II a a Minnesota man man- manufacturer manufacturer manufacturer In the th cities are re found American automobiles automobile typewriters cash registers and nd other nationally known which with our faithful missionaries are ar making America famous Th total exportS for I 1925 1025 5 show an all Increase of 7 1 per cent over 1924 an and l the only prominent Items showIng any tie tie- de decrease crease a are re vegetable food and other vegetable ble products OCR Oln IMPORTS ALSO Our Imports tor for 1925 show as follows and the second table be- be below below be below low gives lives n a a rough Idea ot of how these thes tire ore re divided up The Th greatest m- m increase in increase crease In value Is In the th group croup of ether vegetable products product which In- In Includes In Includes eludes rubber while willie the only tie tie- de decrease crease registered was In the ma- ma machinery ma machinery chinery and vehicles group LUE OF IMPORTS Million Dollars rs 5 1921 Animals and products Vegetable food tood products Other vegetable ble products product Textiles and wool 77 1051 Wood and pap paper r 33 Metals and products 32 Non metal minerals Machines and vehicles 17 11 IG 10 Chemical products product Miscellaneous Total 42 There Is la considerable le discus dIscus- discussion sion slon among amour conservative banking Interests interest as to the tho wisdom or of America loaning so much mone money II abroad tor for long lonc terms and ILna at high Interest rates rate Those who are ar sell sell- sellIng sellIng Ing foreign loans In this country show that the amount being belne loan loan- loaned loaned ed cd abroad annually In new issues does no not equal the amount which Europe Europa owes owe us each year In In- In InI Interest interest In Interest I terest charges charge They further In- In In Insist alst that tha either cither Europe will sell sellus sellus I Ius us goods to the amount of these I Interest charges or else elso els we must buy European securities The Tho only I goods with which Europe can manufactured manufactured compete with us are arc goods in which a large amount of labor Is Involved ol It If the United States State greatly increases Its Imports of ot manufactured goods this this- must necessarily close down certain factories In this country country- bonds bond I Hence those selling foreign clamS claim that we 0 must buy European bonds or see sec our closed down factories EXA EXAMPLE EXAMPLE- D Personally I should be freer to recommend foreign bonds II if the large financial Interests especially the great city banks were to keep more 1 inor of ot these the foreIgn bonds an as their own Investments l Since these the banker bankers do not care for tor any large larr proportion of ot them themas themas thema as personal Investments Investment I rather question whether they ar are for widows widens and orphans 0 Of course logical lo thing thine would be b for those Mho ho are ar selling abroad at ata ata ata a good rood profit to take tak these thes foreign that Issues that Is let these concerns and Investors inventors who are ar profiting largely by foreign trade lake take at least th Ir it profits profit In foreign bonds On the other hand Europe Europ now looks upon us WI as selfish and mis mm- miserly erly with our war profits and It may be b our duty duly to buy foreign bonds It If we did not loan Europe at tho the pres present nt time graciouslY I I and International com corn complication might arise which In InI Inthe Inthe Inthe the end end would cost the hn nation much more than what It may possibly lose on foreign loans which may not turn out satisfactorily satisfactorily Any An discussion of ot foreign trade leads Inevitably to the question of whether there theta will be any I 1 changes chances by congress In our ur t ril fa It does dots not seem pos pos- possible possible sible that the tariff can further urther be Increased and any reductions In the tho tariff should the volume of ot foreign trade although the tendency would be b for tor im- im imports Im Imports ports to Increase Increased Im- Im Imports imports im imports ports however do not necessarily mean man d decreased exports Lowering of the tariff tends tor for Increased m manufacturing efficiency and arid con con- consequently consequently lower prices price thereby enablIng us to compete compel abroad In Inmany inmany Inmany many lIr-es lIr lire In which It Is almost Impossible for tor us to compete compel to- to toda today div to da day Personally I believe that the tariff should be used to protect Infant industries Where much manual labor Is Involved but II a a protective tariff can easily eany be abused The Tn o of stand goods and mass pro pro- production production pro production Is 1 the best hest Insurance wo we can have agaInst foreign competition competition tion ion T rJ TIlTS lIlTS BACK CJ The only fly fly In the ointment of foreign trade outlook at the pres present nt In connection with rubber the th price pric of which has hall been so bO successfully manipulated by the English government go that American manufacturers are ar now howling for tor help It If this manIpulation manipulation lation lops with rubber nothing Is to be bt feared but the chances are that other countries which control other products will try the tho sante am game gamt Experience shows vs that any scheme merel merely for tor makIng money Is always s 's over over- overworked overworked worked until it collapses of Its own weight we-Ight If it were not for tor our tariff policy the thc English English- people claim we w would have a amoral moral right to ap appeal eal to the Eng Eng- English lish sense sens of or justice e to have hae this rubber situation Owing however hower to our tariff policy the English feel that w we are In no i to criticize their intern intern- International morals What the ultima ultimate t result of this controversy II be only the future can tell but just now It Is like the th pot calling the kettle black However fr Its It's a 3 a long I lane ne that has no turning and and American Ame business men should understand that when a product has hns sold nb- nb abnormally ab abnormally normally low tor for a a certain period an abrupt Increase to hIgh prices Is Inevitable Further Further- Furthermore Furthermore Furthermore more when a 3 a product has sold too Ion long lone at pt a very Tory profItable figure re this profit encourages com Coin competition petition nd md nd Increased production which ultimate kills the goose that lays jays y the golden egg ess and ab- ab abnormally b normally 1 ow prices follow tollow The principles applies to general as a a whole When busl- busl business ness ness has haa been below normal for fora fora II a certain length of o time It In- In runs above normal for tor tora fora fora a period This Is what Is taking I place at the present time for tor th the H 13 1 tolla today stands at per per- ent cent above above aboe normal compared With 5 S per cent a year ar ago ego Al- Al Although Al AI Although I though the the- only Immediate signs sIgN of a decline are fI re hi In connection the tock market yet et It if I business grow grows too much aboVe abo I normal norma there Is bound to bet be t 11 I reaction to a 1 amount below V normal Copyright 1526 Publishers Fl- Fl Fi Financial Bureau |