AMERICAN TRADE

Evening Post, Volume CX, Issue 42, 18 August 1930, Page 12

AMERICAN TRADE

: -SUBSTANTIAL PALL /.■...• I'AWEST FOR F'VE YEARS tuited ..Vrcss . Association —By Ulectric Tol«- ---.,.., t. , srapli— Copyrislit. ■.;■'.■■ WASHINGTON, 10th August. The.Department of Commerce has announced that'the United States foreigu trade has' dropped in July to the lowest figure' for five years. ■"The exports total 209 million dollars and the imports 219 million dollars, a decrease from the previous July figures of loSmillions for exports and 134 millions for imports. Tlie- great New York banking and financial institutions report the great shrinkage in the trade of the United States during the third quqarter of 1929 and the halfyear of £1930. Trouble appears to have begun' with the sensational collapse ot prices on- the New. York Stock Exchange and the curb market in October. Although somel recovery was made in the value ot securities,. yet in March there-was a setback. ;and again in June. ■ ' ' But' the collapse 'ot the sharemarkets was not''the only cause of industrial depression'/- Prices' of commodities continued to-decline in the United States m common -with markets the world over. In the ■■United---States itself, with few exceptions, company net profits this year have obstinately tended downwards. J.he Guaranty Trust Company's latest report stated;. "Business has" definitely settled down to the Expectations of a dull summer,"' but expected that there would l>e a- revival of trade in the autumn months. Conditions-' favourable to such an improvement included cheaper money, fairly wcilvmaintained wage-scales, ■ and a.generally 'moderate level •of . commercial and industrial inventories. At the same time the 'decline in commodity prices continued downwards: The effect of these conditions oil employment was shown by the National City Bank'of New York, which, recently' gave the following offioial Federation of Labour figures for the month of jA-pril,. showing percentage of union mem<j£rs unemployed:— : ,

'Decreased production was registered' for the .'first...half :of this year, compared with the corresponding periods of last year in particular', trades: Steel, ingots, 13 per ceitti;. steel' mill, 6 per cent.; building Jionstructipn, 25 per cent.; motor vehicles,' 29; per cent., arid it was stated that "all manufacturers' (of motor vehicles) continue their' policy' of keeping production in close "step with sales, bo that stocks of jiew-cars-i are low, and the industry ism a. position" to respond quickly to any improvement, in retail demand." Striking tables', are .furnished showing the net profits .earned by. groups of companies in the firstqquartetr t of the current year, after full revision,' and they nearly all indicate declines'on .those for the first quarter of: 1030.: .Three hundred companies are] analysed':and..show a decrease of 21 per <:en,t.; for the quarter compared with the January-March period of 1929, aggregate I net profits declining from approximately I 438,000,000 'dollars to 344,000,000 dollars. In ' the 'corresponding quarter of 1928 the same Companies 1 had total profits of 327,000,000 dollars!' so- that for 1930 they are still 5 percent.* ahead of two years-ago. : Of' the '300 -companies dealt with, 27 were \not' 'paying dividends.. The remaining "273.companies were dividend-paying. Ot, the ; 306 grouped' companies, quotation optlie net:profits of a few of the group may ; be. found interesting, the figures lieitig given in dollars, omitting final -"ooo'fi.',; ' .:' ':.'■■'

Increases will be noted in profits derived.from aititisements and ■ restaurants, food products and:.printing and publishing. Motor vehicles sluow: relatively substantial declines, so do iron arid steel and petroleum profits. *E?c'ludes General Motors profits.

.,-'■■■ . .' 1930. 1920. 1528. Per cent. Por cent. Percent. 'All .tildes -,....'. 20' 12 ' 16 •Building ...... 40 29 32 Metals ......... 19 .3 lp .PrintlDg . 6 * ■» ■ OiHar Itides 12" — —

' - ■ ■ ■ ■ . 1929. Amusements 13,328 J!e3taurants ■.... 1,700 Motor vehicles* 37,75-1 Genera!" motors 1 60.31S Ailto .accessories 22,851 Coal' ;.....;....... 1,781 Chemicals' .' .44.120 Electrical: equipment . 23,841 J?ood products 27,940 Jroflv and' steel ...... 73.S41 Xon-ferrous mining 23,237 Petrqleum ........ 26.532 Be'ali Kstate ......:.. 2,709 Printing and publishing .. S.921 Itaiiway equipment 4,607 1930. 19.97S 1,930 10,293 44,969 12,482 1,066 35,121 ''1 375 2l!s?5 2,367 9,439 5,421