UNITED STATES TRADE.

New Zealand Herald, Volume LXVI, Issue 20257, 17 May 1929, Page 14

UNITED STATES TRADE.

"BILLION DOLLAR" BALANCE.

HUGE DOMESTIC MARKET.

TENTH OF OUTPUT EXPORTED. "The combined effect of the substantial increase in value of exports and the moderate decline in value of imports was an increase in the balance of net merchandise trade to over 1,000,000,000 dollars for the first time since 1921. Thero was also a heavier net export of cold in 1928 than in any earlier year," saya a report on the foreign trade of tho United States in 1928, issued by the Department of Commerce. The report, though offered as only a general survey of the subject, presents a mass of information, illustrated with statistics, upon a variety of its aspects. Reviewing tho trend of trade the report says that "during tho war the United States furnished a much larger share of the .world's export trade than in earlier years,, while, conversely, the proportion furnished. by Europe showed a sharp decline. This ratio of United States exports to world exports has been gradually declining since the conclusion of peace, but is still substantially higher than in 1913. Reflecting the improvement in relative purchasing power American imports also constitute a much larger proportion of world imports than before the war. The trade of most European countries, on tho other hand, now forms a much smaller share of tho world total than in 1913. Exports of the United Kingdom, Germany, Russia and several other European countries, after allowance for price changes, ar6 actually smaller than before the war. Expansion of Internal Demand. One of tho most striking chapters in the report contains a comparison of exports with the national production, estimates of the latter being restricted to products capable of exploitation. TJie conclusion is that in 1928 only 9.6 per cent, (less than one-tenth) of tho total production was exported. Notwithstanding the rapid increaso in export trade the proportion of the national output exported is actually less than at the beginning of the century, when it was 11 or 12 per cent., and about the same as immediately before the World War. Dealing with manufactured commodities alono (apart from manufactured foodstuffs) the report states that the value of such exports is now nearly seven times as great as at the beginning of the century, yet, owing to tho enormous expansion in the domestic market, the exports represent only 8.4 to 8.7 per cent, of the total output, this ratio being but slightly greater than at the beginning of the century and an appreciably smaller proportion than in 1924. "Among the finished manufactures the foreign demand is in general largest for highly-elaborated articles produced by mass methods. In tho case of most such articles, however, the high standards of living in the United States create a market much gi-eater than that of all tho rest of the world combined, although in a few instances exports constitute a large proportion of' the output. We export over half our annual output of motor-cycles, over one-third of the. typewriters, one-fourth of the sewing machines and about one-fifth of the agricultural machinery. In the case of cash registers and automobiles the proportion exported is about one-eighth." The relative importance of tho domestic market is further emphasised by the fact that, while exports of finished manufactures represented so small a proportion of the total output, they constituted 45 per cent, of the whole exports. Production and Foreign Trade.

The approximate value of "movable commodities" produced in the United States in 1928 was £10,000,000,000. Exports amounted to £1,000,000,000 and imports to £800,000,000.

Trade with New Zealand forms a very small part in the foreign commerce of the United States. In 1928 only 0.7 per cent, of the exports were despatched to the Dominion, while American imports from New Zealand represented only 0,5 per cent, of the total. The corresponding values were approximately £7,200,000 and £3,840,000. New Zealand is, nevertheless, among the "leading countries of origin" for two of the principal imports —cattle hides and lamb and sheep skins. Of the former it supplied only £341,000 worth in a total of £12,740,000, but of the latter it was actually the largest source, furnishing £1,180,000 worth toward a total of £4,146,000, Argentina and the United Kingdom following* with substantially lower amounts. In a summary of exports according to leading countries of destination trade with New Zealand is sufficiently important to be mentioned only in respect of gasoline and naphtha, of which the Dominion purchased £1.286.000 worth—the total exports being £46,394,000.