TRADE “IRRITATION”

Timaru Herald, Volume CXLVIII, Issue 21559, 23 January 1940, Page 7

TRADE “IRRITATION”

American Criticism Of

Britain Damage To Export Business United Press Association —By Electric Telegraph—Copyright (Received January 22, 11.0 p.m.) NEW YORK, January 21. The Washington correspondent of the “New York Times” says that Britain is preparing to spend one thousand million dollars on aeroplanes and other essential military supplies in the United States and is seeking dollar exchange for the purchases. It is understood that the Administration is worried about the exchange situation such a huge purchasing plan will produce, although the purchases will tend to offset the loss of United States trade resulting from the British blockade. Britain had 1,250.000.000 dollars of negotiable securities in the United States at the outbreak of the war. The administration seeks to avoid extensive liquidation because of the possible effect on the domestic securities market. The Secretary of the Treasury iMr H. Morgenthau, Jr.) is seeking means of facilitating lhe expansion of aeroplane and engine factories to permit the filling of British orders.

A message from V ashington states that the United States is becoming increasingly concerned over the effect of the British war economy on American export trade. Shipments to Europe, representing one-third of the total exports, have been drastically reduced not only because of direct belligerent activities but also because of the British blockade of neutrals who might tranship to Germany, /mother factor is the closing of British markets to conserve the dollar exchange to strengthen th? economic and political ties between the allies, the Empire and friendly countries. This is damaging to United States agricultural exports, particularly wheat, tobacco, cotton and fruit. The volume of agricultural products exported in November was the smallest since the 1934 drought. Officials fear that the British failure to buy United States tobacco will create a domestic surplus and depress prices. Planters are planning to produce 500.000.0001 b in 1940, compared with 1.000.000,0001 b last year. Similarly it is feared that cotton growers will suffer as a result of the British decision to allot shipping space for only 100,000 bales a month during the next six months exporters may not be able to move all the cotton sold. While war material purchases may offset the losses to some degree the United States is also being forced from the Argentine. the leading Latin American market, because the British buying of Argentine wheat and meat is forcing the Argentine and, to a lesser extent. Brazil, to reciprocate. The general position is creating considerable irritation. It is stated that it has been made clear to the British Embassy that public opinion is being adversely affected.