The increase in aggregate receipts and aggregate payments in 1937 was the result primarily of the rise in the earnings of United States vessels from the transportation of United States exports, on the one hand, and of the increase in the earnings of foreign vessels from the carriage of imports, on the other. As shown in table 6, the former were placed by the Maritime Commission at $65,000,000 and the latter at $186,000,000, inclusive, in each case, of earnings from Great Lakes traffic.39 These amounts, which represented increases of 64 percent and 81 percent, respectively, as compared with corresponding receipts and payments in 1936, were attributable in turn to the increased volume of foreign trade during 1937 coupled with a rise in shipping rates, which, in the case of vessels on time charter and on full-cargo charter, fully doubled within a period of 6 months beginning with October 1936 and which continued upward until the sharp decline beginning in October 1937.

Table 6.-Estimated Freight Earnings by United States and Foreign Vessels in the Carriage of United States Merchandise Exports and Imports, 1937

A deduction of 10 percent, or $19,000,000, was made from the estimated gross earnings of foreign vessels in import trade to allow for harbor dues, pilotage, and other offsetting charges incurred in United States ports. The remainder, $167,000,000, was entered in the freight and shipping account as net payments to foreigners for the carriage of water-borne imports. In the case of earnings by United States vessels in export trade, the total of $65,000,000 was left unchanged upon the assumption that deductions for port and pilotage charges in foreign ports were roughly balanced by earnings from the carriage of goods between ports of foreign countries.

Receipts of United States railroads for the carriage of merchandise in transit across United States territory result largely from transit shipments of grain and other commodities from Buffalo to Atlantic coast ports. Shipments of wheat and other grains in 1937 were reduced to very small proportions, while the value of other merchandise involved was, on the other hand, much higher than in 1936. Estinated earnings from this traffic increased from $5,000,000 in 1936 to

Earnings of United States vessels from the carriage of United States imports and earnings of foreign vessels from the carriage of United States exports, neither of which enter the balance of payments, increased from $45,000,000 in 1936 to $82,000,000 in 1937 and from $112,000,000 to $209,000,000, respectively.

$6,000,000 in 1937, in addition to which roughly $2,000,000 was received in the latter year for moving Canadian imports from oversea countries across United States territory. A more important class of earnings by domestic railroads arises out of the carriage of United States exports to Canada, the recorded export value of which does not include freight to the border. In effect, this omission applies to virtually all exports to Canada except coal. Revenues from this traffic were estimated at $34,000,000 in 1937 as compared with $23,000,000 in 1936.

Payments to Canadian railroads (including United States-owned and leased lines) for the carriage of imports from inland shipping points to the border or to lake ports were estimated in 1937 at $24,000,000 in comparison with $17,000,000 in 1936. Payments to Canadian roads for the carriage in transit of United States goods across Canadian territory were unchanged at $19,000,000.

Estimates prepared by the Maritime Commission show that the gross revenues of United States vessels from the carriage of ocean freight were $145,000,000 in 1937 (see table 6), as compared with $82,000,000 in 1936. Of these amounts, $64,000,000 and $38,000,000 in the respective years represented earnings from export tradethat is, receipts from foreigners. The gross ocean-freight revenues of foreign vessels were estimated at $207,000,000 and at $385,000,000 in 1937, of which $101,000,000 and $182,000,000 comprised earnings from import trade-that is, payments to foreigners. Net payments to foreigners arising out of oversea trade, reckoned on the basis of gross data, were therefore $63,000,000 in 1936 and $118,000,000 in 1937.

If account is taken also of the respective earnings of United States and foreign vessels from oversea passenger traffic, which were estimated by the Finance Division in connection with the computation of tourist receipts and payments at $40,000,000 in 1936 and at $37,000,000 in 1937 for domestic vessels and at $107,000,000 and $130,000,000 for foreign vessels (see appendix B), the gross earnings of the United States merchant marine from the carriage of passengers and cargo between this country and oversea countries were $122,000,000 in 1936 and $182,000,000 in 1937, as compared with $314,000,000 and $515,000,000, respectively, earned by foreign vessels. Since net payments to foreigners arising out of oversea passenger traffic were $76,000,000 in 1936 and $97,000,000 in 1937 (the respective differences between estimated payments by foreign travelers to United States vessels of $9,000,000 in 1936 and $8,000,000 in 1937 and by United States travelers to foreign vessels of $85,000,000 and $105,000,000), total net payments to foreigners on oversea shipping account were $139,000,000 and $215,000,000 in the 2 years, respectively.

Estimated aggregate payments by United States travelers to foreigners 40 rose to $594,000,000 in 1937 from $497,000,000 in 1936. This increase of $97,000,000, or 20 percent, in foreign-travel outlays by residents of this country was offset only in small part by an increase in the estimated receipts of the United States from foreign travelers to $156,000,000 in 1937 from $139,000,000 in 1936, a rise of 12 percent. Thus net payments to foreign countries on tourist account were $438,000,000 in 1937, as compared with $358,000,000 in the preceding year. The expenditures both of United States travelers in foreign countries and of foreign travelers visiting the United States were larger in 1937 than in any recent year since 1930, although still 28 percent and 15 percent, respectively, below those of the peak year 1929, in which estimated tourist payments were $821,000,000 and estimated receipts $183,000,000. In each instance outlays were more than twice as great in 1937 as those in 1933, which amounted to $292,000,000 and $71,000,000, respectively, and represented the fourth consecutive annual increase in these items. As a result, net payments to foreigners on travel account doubled between 1933 and 1937; but they were, of course, considerably less than in 1929.

The trends in selected tourist data since 1930 are shown in table 7 and figure 3. The expenditures of United States travelers in foreign countries and of foreign travelers in the United States, as well as net payments to foreigners on tourist account, are shown in figure 4 for the years 1929-37.

Table 7.-Trends in the Tourist Movement as Reflected in Various Data, 1930-37

1 It should be noted that these figures differ from those reported in a similar table which appeared on p. 19 of the 1935 issue of this bulletin. The latter included departures to contiguous countries and departures by air, both of which are excluded from the data given above.

These data differ both from those reported in a similar table which appeared on p. 19 of the 1935 issue of this bulletin and from those reported on p. 20 of the 1936 issue. The data published in the 1935 issue, captioned" Alien residents of United States returning from trips abroad," included residents returning from Canada and Mexico as well as from oversea countries; those appearing in the 1936 issue represented the number of alien residents departing from United States and Canadian seaports for oversea countries after declaring an intention to return to resume residence in this country after an absence of less than a year.

The geographic distribution of payments and receipts on international tourist account in 1936-37 is given in table 8, together with separate estimates pertaining to types of travel within designated countries or areas. The nearly equal expenditures of United States

Other phrases used synonymously with "payments by United States travelers to foreigners" such as "expenditures of United States travelers in foreign countries" or "outlays of United States travelers for foreign travel" are conventional although technically inaccurate. The second phrase excludes fare payments to, and expenditures on board, foreign vessels, while the third would include fare payments to, and expendi tures on board, United States vessels, which are not international payments.

travelers in Canada and in oversea countries have each accounted for approximately 46 percent of total outlays for foreign travel in these 2 years. Visitors to Mexico-who are predominantly border visitors, as

Figure 4.-International tourist account of the United States, 1929-37.

opposed to visitors who are classified as "tourists" by the Mexican Government and who visit Mexico City and other interior pointsmake relatively small aggregate expenditures and accounted for only 8 percent of the total. In the case of expenditures by foreign travelers

in the United States, on the other hand, two-thirds of estimated total outlays arise out of travel by Canadians in this country and the remaining third out of visits by travelers from noncontiguous countries.

Table 8.-International Tourist Account of the United States, 1936-37
[In millions of dollars]

1 Oversea areas are divided roughly into two parts: (1) those in which United States citizens are required to present passports to gain entry and (2) those in which passports are not required. The latter include Cuba, Dominican Republic, Haiti, British Honduras, and Panama; British Guiana, Guatemala, Jamaica, Mexico, and El Salvador (under certain conditions); other British West Indies, including Bermuda, the Free City of Danzig, and Iceland. Items 1, 2, 3, 5, and 7 include passenger-fare payments to foreign vessels and shipboard expenditures. Corresponding expenditures for travel on United States vessels, although representing tourist outlays, are, on the other hand, excluded from these estimates, since they are not international payments.

The international "tourist" account of the United States would perhaps be more accurately denominated as the international "travel" account, since, for purposes of the balance of payments, the term "tourist" is broadly defined to embrace persons who move across the national boundaries for any purpose whatsoever. "United States travelers" include both citizens and alien residents of the United States (who spend, in the course of foreign travel, funds derived in this country), as well as, in part, citizens permanently residing abroad. Travel by residents of the United States in foreign countries and by residents of foreign countries in the United States is motivated by a