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worthy. The agreement on the part of the United States Treasury to purchase silver from the Chinese Government and to make dollar exchange available to China for currency-stabilization purposes was renewed in July, and the arrangements were apparently adequate for maintaining the dollar-yuan rate within narrow limits. In the case of the yen, the drastic exchange and import restrictions imposed by the Japanese Government were supplemented by large shipments of gold to the United States. The proceeds were used, partly in New York and partly in London, to meet a large deficit on trade account. The strength of the Argentine peso, growing out of an exceptionally heavy excess of commodity exports, made possible a substantial addition to gold holdings in spite of the retirement of external debt during 1937. Toward the end of the year other South American currencies showed marked weakness.

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The aggregate foreign trade of the United States rose from $4,879,000,000 in 1936 to $6,429,000,000 in 1937, or by approximately onethird. The 1937 total was considerably more than double that in 1932 and two-thirds of the 1929 aggregate. Merchandise exports were valued at $3,345,000,000 in 1937 and imports at $3,084,000,000, as compared with $2,456,000,000 and $2,423,000,000, respectively, in the preceding year. The increases were thus 36 percent in the case of exports and 27 percent in the case of imports. That the gain in exports was largely the result of the continued growth in the quantum of trade and, to a lesser extent, of a further rise in the prices. of goods entering foreign trade is shown by the fact that exports increased 28 percent in quantity in 1937 as compared with 1936 and only 6 percent in unit value.29 Imports, on the other hand, increased 11 percent in quantity and, in terms of unit value, 12 percent.

Comparisons of foreign trade in 1937 with that in 1932 and 1929 indicate that export trade expanded by 108 percent from 1932 to 1937 and import trade by 133 percent; exports in 1937 were 64 percent of the 1929 figure and imports 70 percent (see fig. 2). The quantum of exports in 1937 was approximately half again as great as in 1932 and 79 percent of the 1929 magnitude. Imports were 66 percent larger on a quantity basis than in 1932 and-a particularly notable fact as large as in 1929. Unit values in 1937 were, in the case of exports, 137 percent and 81 percent of 1932 and 1929 levels, respectively, and, in the case of imports, 139 percent and 70 percent.

The specific nature of the larger foreign demand for United States merchandise in 1937 is shown by increases of 135 percent (from $150,000,000 in 1936 to $352,000,000 in 1937) in shipments of iron and steel products; of 43 percent (from $263,000,000 to $376,000,000) in exports of petroleum and petroleum products; of 52 percent (from $159,000,000 to $240,000,000) in exports of industrial machinery; of 83 percent (from $55,000,000 to $100,000,000) in sales abroad of motor trucks and busses; of 70 percent (from $23,000,000 to $39,000,000) in shipments of aircraft and parts and accessories; of 84 percent (from

29 An analysis of the foreign trade of the United States in 1937 appeared in Trade Information Bulletin No. 839, Summary of United States Trade with World, 1937, issued by the Division of Foreign Trade Statis tics of the Bureau of Foreign and Domestic Commerce.

"Quantity and unit-value comparisons refer to exports of United States merchandise and to imports for consumption.

$44,000,000 to $81,000,000) in foreign purchases of copper; and of 75 percent (from $58,000,000 to $102,000,000) in exports of crude foodstuffs.30 Except for exports of crude foodstuffs and of some manufactured foodstuffs, which increased largely as a result of abundant domestic crops of certain grains combined with poor harvests abroad, these greatly augmented foreign purchases of United States commodities were influenced, in general, by the high level of industrial activity abroad and to a considerable extent, in particular, by sharply increased requirements for armament and related materials.

The increase in imports for consumption was more evenly distributed among general economic classes than in the case of exports, the growth of which was heavily concentrated, on a percentage basis, in crude foodstuffs and in semimanufactures and, on an absolute basis,

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in semimanufactures and finished manufactures (see table 3). Imports of crude materials and of semimanufactures rose somewhat more in proportion than total imports, however, and considerably more in dollar volume than imports in other (smaller) categories. Among principal import commodities, receipts of crude rubber increased from $159,000,000 in 1936 to $248,000,000 in 1937, or by 56 percent; of oilseeds from $37,000,000 to $64,000,000, or by 71 percent; of unmanufactured wool from $53,000,000 to $96,000,000, or by 81 percent; of grains except wheat from $26,000,000 to $66,000,000, or by 159 percent; of cocoa or cacao beans from $33,000,000 to $52,000,000, or by 58 percent; of meat products from $26,000,000 to $40,000,000, or by 56 percent; of copper from $25,000,000 to $47,000,000, or by 87 percent; and of tin from $76,000,000 to $104,000,000, or by 38

30 Other exports which increased in 1937 over 1936 by more than the general average of 36 percent included agricultural machinery (71 percent), paper manufactures (40 percent), wheat flour (44 percent), and wood pulp (88 percent). Decreases, generally small, occurred in the value of shipments of unmanufactured tobacco, undressed furs, certain fruits, and meat products.

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percent.31 These exceptional increases in imports were related chiefly to two underlying factors. Larger imports of raw materials, as, for example, rubber, wool, and tin, were required by the continued expansion of industrial activity during the first half of 1937 (during which imports increased by 45 percent as compared with 27 percent for the year as a whole) and, in the cases of some items, by the sustained demand from foreign countries for manufactured articles. The need for considerable importations of certain agricultural products arose as a result of shortages following the drought and short crops of 1936.

Table 3.-Foreign Trade of the United States, by Economic Classes, 1936-37 [Amounts in millions of dollars]

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These various influences affecting the foreign trade of the United States in 1937 produced, for the 12-month period, an increase in exports larger than in imports. As a consequence, the balance of merchandise exports of the country rose from $33,000,000 in 1936 to $261,000,000 in 1937.

FOREIGN TRADE BY COUNTRIES AND GEOGRAPHIC AREAS

The familiar geographic pattern of the foreign trade of the United States appeared again in 1937. Export balances with North America, Europe, Oceania, and Africa were offset in part by import balances with South America and Asia (see table 4). As a result in each case of an increase in exports greater than the rise in imports, the excess of merchandise exports to Europe increased notably, and a small import balance with North American countries in 1936 was converted into a typical balance of exports.32 The surplus of exports to Oceania and Africa were reduced, on the other hand, as a consequence of an expansion in imports greater than the growth in exports. Import balances with South America and Asia both increased because of larger gains

a Other imports for consumption which increased in 1937 over 1936 by substantially more than the general average of 24 percent included hides and skins (30 percent), vegetable oils (31 percent), diamonds (31 percent), fertilizers (40 percent), leather manufactures (41 percent), and machinery (31 percent). Decreases occurred in purchases of crude petroleum, wheat, and alcoholic beverages

32 Trade with northern North America (principally Canada) results typically in an excess of exports: trade with southern North America (Mexico, Central America, and the West Indies and Bermuda) results usually, but not invariably, in an excess of imports; trade with North America as a whole results generally in an excess of exports. In 1935, for which the export balance with northern North America was unusually small, trade with North America yielded a small excess of imports.

in imports than in exports. The most important changes in regional trade balances, in point of magnitude, were the increase in the balance of exports to Europe from $325,000,000 in 1936 to $512,000,000 in 1937, the shift in the trade balance with North America from an excess of imports of $2,000,000 to an excess of exports amounting to $150,000,000, and an increase (the third in successive years) in the import balance with Asia from $309,000,000 to $388,000,000.

As a reflection of the general increase in world trade, increases in merchandise exports and imports in 1937 were widely distributed geographically. Among leading countries, only in the case of trade with Spain were exports smaller in 1937 than in 1936.33 Exports increased 21 percent to the United Kingdom, 33 percent to Canada, 41 percent to Japan, 27 percent to France, 22 percent to Germany, and 44 percent to Mexico; and these countries remained, in the order named, the principal foreign markets for United States goods. Increases in shipments to other countries ranged up to 62 percent for Belgium, 63 percent for British India, 66 percent for Argentina, 77 percent for the Netherlands, 82 percent for the Netherlands Indies, 93 percent for Venezuela, and 141 percent for the Netherlands West Indies.34

Imports were higher in 1937 than in 1936 from all leading suppliers except Venezuela and, again, Spain.35 Receipts from British South Africa increased by 147 percent, from Argentina by 111 percent, from Australia by 90 percent, from Chile by 79 percent, from the Netherlands Indies by 65 percent, from the Union of Soviet Socialist Republics by 50 percent, from British India by 47 percent, from British Malaya by 40 percent, and from China by 34 percent. Canada was again the principal source of imports into the United States. As a consequence of greatly augmented purchases by this country of rubber and tin, British Malaya took second rank instead of the United Kingdom, which dropped to fourth place. Japan again ranked third and Cuba fifth, while Argentina occupied sixth position, displacing Brazil. The increases in imports from Canada and the United Kingdom were comparatively small.

Export balances with leading countries were larger in most instances in 1937 than in 1936. Balances with Australia and the Union of Soviet Socialist Republics were reduced, and a surplus of exports to Spain was converted into an import balance. On the other hand, an excess of exports to Belgium reappeared, and export balances with Sweden and Venezuela appeared instead of the more typical excesses of imports. Import balances with principal countries were generally higher, however, in 1937 than in the preceding year, notably with Argentina and Chile, among South American countries, and, among Asiatic countries, with British India, British Malaya, China, and the Netherlands Indies. Slightly smaller import balances were recorded in United States trade with Cuba, Brazil, Colombia, and the Philippine Islands.

"Decreases, generally quite small and affecting a small aggregate volume of trade, occurred also in exports to Greenland, Miquelon and St. Pierre Islands, French West Indies, Albania, Greece, Saudi Arabia, French Indochina, and French Oceania.

Other countries, exports to which increased by more than the general average of 36 percent, included Chile (53 percent), Sweden (49 percent), China (46 percent), Colombia (42 percent), Philippine Islands (41 percent), Brazil (40 percent), and Cuba (37 percent).

35 Decreases, generally very small and affecting a small aggregate volume of trade, were reported also in imports from Miquelon and St. Pierre Islands, Honduras, Jamaica, Trinidad and Tobago, French West Indies, Iceland, Latvia, Gibraltar, Aden, and British East Africa.

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