AMERICAN OUTLOOK.

Auckland Star, Volume LIII, Issue 3, 5 January 1922, Page 2

AMERICAN OUTLOOK.

FOREIGN TRADE SLUMP. STARTLINtI DEI KKASF.S. (From Our Special Correspondent.) SAN FKANUSOO, December 0. While the delegates ul the Washington Disarmament Conference have been busily engaged seeking methods to promote world amity, the .statisticians of the American capital have caused an undeniable surprise in commercial circles by figures issued by them showing that America's trade is fast showing a tendency to head for vanishing point, and Uncle Sum is forced to the conclusion that his supposition of amassing immense fortunes by exporting America's surplus commodities tv Luropeuu warworn nations is nothing less than an idle dream. The statistics sunt out by the -Washington officials appear to prove I hat these war-worn nations have set to work with, a commendable will and have rehabilitated themselves much ,packer tliim Americans calculated possible. The fact is that these nations wiio participated in the world struggle are now producing on a large scale and are in rcant need of assistance irom the I'nited States. This circumstance is what has militated against tlie big merchant marine established by the U.S. Government for scores of line vessels constructed during the peak of war-time emergency arc now lying rotting in what critics designate "boneyards," scattered as they are in many of the porl.s of the Atlantic and Pacific seaboard-.

Washington announced thai values of merchandise exported during last October fell to fractional parts oi' the totals for tiie siimc month of 1020, while decided drops in imports were nolod by the I.S. Commerce Department in it* monthly summary. Kxport.s to Europe aggregated inn, 000,000 dollars, compared with -123.000,----000 dollars in Octolicr la-t year, while imports amounted to 07,000.000 dollars, | against R8.000.0110 dollars. During Ihe ten months ended with October, exports to Europe were '2\0.">H.000.00O against iI.T-0.000.000 dollar- the corresponding months of 1020. while imports aggro- . gated fi'2'2.000.000 dollars compared with j 1.078,000.000 dollars. i Exports to South America for October aggregated l-'.OOO.OOOdoIs. against .".S.OOO.OOOdnls a year ag,,. wiiile imports totalled IS.OOO.OOOdoIs. compared with 47.000.000d..15. In the ten month- ended with October, exports to South America aggregated •_>!-! .OOO.OOOdr.Is. compared with 40l,000.(K10dols for the same months last year. ami imports reached -2 I'.OOO.- ! OOOddls. against ti.So.OOO.OOOdoIs. While the exports to Asia dropped only slightly, from 4«,000,000duls last year to 44,000,000d01s for tile corresponding ten months this year, imports showed a. lamentable deficiency, dropping from 70.000,000d01s to but -tf.OOO.OOOdoIs. Exports and importa by principal countries during October, compared with Octolicr of 1020. follow: - Franco -Kxports 2ti,ooo,ooodols. against 79,0ni1.000d015; imports 11.000.000d015. against 12.000.000 dols. (lermaiiy- Exports 2(i.000.000dols, against :i2,00ll.i)00dols: imports. T.iitW.OttO dols, against 7,000,000d015. Italy—Exports IS.OOO.OOOdoIs. against .".1i.000.0-.10 dols.: imports. T.OOO.OOOdoIs. against 4.000.000d015. Croat Britain -Exports. ' So.OOO.OOOdoIs. against KiO.OOO.OOOdols; imports. 10.000.000d015. against 1i1.000.000 'dols. China—Exports n,ooo,oOodols against : l.'S.OOO.OOOdob; imports. 0.100.000d015, 'asainst f.G00.000. .Japan—Exports 25.OOO.OOOdoIs. against 12.000.000d015-.im-; ports 17.000,000d015. against 21,000,000 dols. Mexico—Exports, 14.000.000d015, 'against 21.000.000dols: imports, v.000,000 dols, against 12,000.000d015. j Not only is shipping business showing a. decided decrease, but even carrying cargoes by American bottoms is becoming more difficult owing to the severe competition on the part of British and | Japanese concerns operating on both the , Atlantic and Pacilic Oceans. The American shipping companies find they are 'being undercut by Briti-h' and Oriental ' corporations and tlie result has been the , lowering of charters, especially to Euro- ' pean points. Many of the American ' oceanic services are feeling the pinch • ' critically, and almost every week an- I | nouncements appear in the daily press 'stating that still another shipping man- | ' ager has resigned and embarked in | , another class of activity. Some of the In- j i tluential .and successful shipping officials 1 of the Pacific coast have seen tlie decad-j 'once of American shipping and have ■quietly got out before the anticipated crash, the occupation of cargo carrying i apparently being impossible under pre- ] scut conditions to American-owned ships. STRUvICLK FOR PASSENGERS. j j In the business of currying passengers l I the American shipping companies have J discovered that both the Japanese and 1 British have boon outstripping Uncle I t>am respectively on the Pacific and Atlantic, hut on the former the Canadian Pacilic Ocean Services have dug deeply ' into American business, plying as they do palatial liners from Vancouver to I the Orient, and one curious admission 'oi the part of I'nited States vessel owners is that prohibition has affected the operation of American-owned j steamers in the matter of passengercarrying. Dispatches from San Frani Cisco have already intimated to Antij podeans that scores of prominent I Americans constantly journey lo either ! Vancouver or Victoria' to board ('ana- ' dian steamers for the Orient, as Amcrij cans flatly declare that they prefer ! steamers where liquor can be obtained and not denied them on bone-dry United States vessels. Even high American naval and military officials have travelled to Manila on these Canadian steamers, and have relished the relief from a prohibition ship! On the Atlantic side the American shipowners are endeavouring lo wrest, some of the passenger trade from Britishers by introducing bigger ocean greyhounds, and from New York it is announced that fur the second time within three years American engineering skill ha-s triumphed over obstacles tending to prevent the giant steamship Leviathan, the former pride of (Icrraany's merchant fleet. from going to sea. The first time was in 1017. when the great 54,000-ton liner interned in New YoTk at the beginning of the war. was wilfully damaged by her own engineers to prevent her from being used as a j transport : for American and Allied , soldiers.

I LEVIATHAN RE-EXTERS.

American engineers repaired the damage and made her ready for a trip within a few weeks. Her record for the war was nineteen voyages, on which she tarried going and coming 184,253 American soldiers. Signing of the armistice laid her up. Then the United Stages Shipping Board, her custodian for the United States (iovernment, began to plan to

restore her in the trans-Atlantic trade as t lie premier American passenger liner. Fitting her fur troops had stripped her, uf hoc* funnel' palatial cabins, saluena and dining halls, and these had tv be restored. ludcr plans now prepared for the bidders aim will be entirely restored as bc'ilting her size. The grandeur of her original "rent dining saloons, lounges, suiuke rooms and liurarica will be retained and improved upon. An imnioiiso tiled mid marbled plunge bath with accompanying j,minis for Turkish, electric and other baths will be one of her attraction*. Suites once designed us personal quarters fur his furmrr Imperial Majesty the Kmperor of Germany will be retained, but suggestions of royalty will be replaced by luxurious iittinga designed by modern democracy. Who will operate the l/evlathan when restored to service and under which house Hag she will sail is yet to be determined by the Shipping Board. 1 RAILWAYS MENACING! SHIPPING. Another thorough-going investigation of the United States Shipping Hoard by the Senate is in prospect as a result of the charges that American railways 1 have entered into agreements, with foreign shipping lines which menace the life of the American merchant marine. il is aimed this time not so much at the board or the administration of the Jones Act us at the contracts made by the American railway companies. Adoption of the La Follctte resolution or a similar measure calling for such an investigation is regarded as certain. Senators interested in the strict enforcement of the Jones Act. hope in such an investigation lo definitely ascertain what is hindering the development of the American merchant marine and to what extent these contracts are contributing to the unfavourable condition now faring it. Tlie infant American merchant marine, struggling 'or existence, is losing much of the trade it would otherwise receive because of contracts for -hauling freight between American railroads and foreign .shipping linos. Senator Wesley Jones, of "Washington Slate, chairman of the Committee on Commerce, has just made public a letter from the National Merchant Marine Association, setting forth startling facts relative tn these agreements. "There are a number of these contracts," Henry <'. Wittbank. secrojtary of the association, said, "and their prrv\is'u>ns constitute potentialities that are .-o grave a menace to I he development of the American merchant marine that a searching investigation of them .seems not only wise, but a vital necessity for the preservation of a volume of American shipping adequate to our needs." From figures ma.ie available there is evidence that ten of the leading railway Lues in IP-JO turned mrr almost 2,000.IKX) tonf, of freight 10 foreign ships, and in return received little more than (iOO.----000 tons. SPECIAL. PRIYILRiFS. The agreement, a. cording to the asso/iation. provides privileges for the contracting parties ranging from spe.ii.-il piers set aside by railroads for foreign lines to reduce freight rat.es and pledges t,> work together against competitors. Mr. Wittbanic continued: "With the Government turning over many millions of dollars to American railroads, and with the railroads i.tilisforeign steamship lines, even to the extent of employing solicitors to get a cargo, a remarkable situation is created. For, while the Government is forced to tie up hundreds of its vessels for lack of freight. American railroads continue to 1 urn over cargoes to foreign steamship 'lines, and these lines continue to gain steadily in the percentage of our ocean commerce which they carry, while our vessels transport less ami less. Thus, I tin: Government, by its payments to the railro-flds is using its money to foster corn-petition with its own shipping ami thereby add to the heavy -burden of loss." '