Evening Republican, Volume 23, Number 92, Rensselaer, Jasper County, 15 April 1920 — FOREIGN MARKETS FOR FARM PRODUCTS PRESENT PROBLEM [ARTICLE+ILLUSTRATION]

FOREIGN MARKETS FOR FARM PRODUCTS PRESENT PROBLEM

Vast Total of Exports in Past Raoal Year—Reconstruction Gives Uncertain Aspects to Future Trade Abroad—Merchant Marine Advances Nation’s Commercial Interests —Production Costs Increase in Europe.

Washington. —Meats, cotton, wheat and wheat flour made up 70 per cent of the total export trade in agricultural products during the fiscal year ending June 30, 1919. The total value of agricultural exports was $3,696,083,924. This amount of agricultural exports exceeded by more than $600,000,000 the total imports of all products to the United States. These figures represent a large increase over figures for pre-war years, the total exports of all products for the United States in 1914 being $2,329,684,925.

Increase Due to War.

“This increase In foreign commerce was caused by the war and was made possible by four major war measured,” says the bureau of markets of the United States department of agriculture. “These four war measures were: The taking of International commerce out of the channels of private trade; the extension of credits by the United States government to the allies and other European countries, amounting to approximately $10,000,000,000, the assembling of all inland and ocean transportation and communication facilities; and the distribution of foodstuffs through central organisations, such as the interallied food commission.” Belligerent countries sustained by credits from the United States had made extensive contracts for food supplies, and upon the release of shipping after the signing of the armistice a heavy movement of foodstuffs resulted. These contracts are about complete, the credits extended by the United States have been expended and trade must return to the private channels of finance, shipping, and barter, end the question of our future foreign . commerce is important. The war has left the world In a complicated political, economical. Industrial, and social situation, and few statesmen or economists have yentured to outline a definite program for the reconstruct tlon period. . “Produe® More, Consume Ltos.” An important and as yet indeterminable factor In foreign trade during ♦he coming months is the result of the "produce more and consume less” campaign being waged in Europe. If the campaign meets with general response It will result in continued use of substitutes, less rapid return to normal consumption, and a decreased demand for American products. Prior to the war the United States enjoyed a foreign market rather than; a foreign trade. Buyers came to the America pi markets, established credits with Anierlcan banks, bought and paid for our products, contracted for shipping In units of the currency and weights of their own country, and in vessels flying the flag of their own nation. The entire transactions were on Basis of New York or American seaboard, and required only a very limited knowledge of the factors of foreign trade on the part of the American vendor. In only a limited wap can it be said that American trade him heretofore penetrated foreign markets. Perhaps the greatest single factor In our future foreign trade in agricultural products is the American merchant marine. On June 30, 1914, the merchant marine of the United Kingdom totaled 20,100,000 gross tons, and shat of the United Stateg 1,875,000 gross tons. On August 1, 1919, the American merchant marine totaled 8,160,409 gross tons, the total number of vessels being 12,707, which Included LOTI new steamers, 58 ex-German ships, and six ex-Austrian ships. This the united States second only to Great Britain as a marine power. Produetion Coste Increased In Europe. The cost of production in European eetmtries wfil.be increased over the pre-war period because of the change |B labor conditions. In matter of machinery and efficient methods of

production, America may be counted upon to keep well apace; The cost of production and labor, and the increased shipping and banking facilities, as compared with pre-war competition conditions, greatly favor the American trader. The uncertain factor in the Immediate future of our foreign trade is the unsolved problem of foreign credit. At the rates of exchange prevailing October 6, 1919, a bushel of wheat which costs $2.37% f. o. b. at our Atlantic ports, in terms of our money abroad, would be worth abroad the equivalent of $2.74 in British money, $3.83 In French money, $4.48 in Italian money, and $13.47 in German money. If the depreciation of European moneys continues, or the rate of exchange becomes more abnormal, it will probably restrict imports not only of bread cereals, but also of other commodities, to the bare necessities, and will constitute a powerful stimulus in foreign countries to increase production.

Loading Grain for Export- The Amount of American A gricultural Products Shipped Abroad During the Flscal Year Ending June 30, 1919, Exceeded Three and One-Half Billion Dollars.