It is usual for the U. S. to have a favorable balance of trade—i.e.,
to export more goods than it imports. In the first quarter of 1937.
however, because of the 1936 drought there were unusually large imports
of agricultural goods which gave the U. S. an unfavorable trade balance
of $113,959,000. Last year there was no drought and therefore U. S.
trade figures for the first quarter of 1938, released last week by the
Department of Commerce, again recorded a favorable balance. What was
more, the balance was a sizable $320,662,000. Reasons for this were
simple: 1> Though still a half less than in the first quarter of the
1929 boom, the volume of U. S. foreign trade has nearly doubled since
1932; 2> more or less stable business conditions abroad plus vast
rearming programs have kept foreign buying of U. S. goods steady
while U. S. buying of foreign goods has slumped with U. S. depression. In March, latest month for which trade figures are available, U. S.
merchandise exports exceeded imports by $102,306,000. In March 1937 the
reverse was true to the extent of $59,909,000. Changes wrought by
drought, war and depression showed most clearly in specific cases: Drought. In March 1937 the U. S. exported $72,000 worth of wheat,
imported $2,689,000; in March 1938 it exported $9,054,000, imported $10,000. War. In March 1937 petroleum exports totaled $23,357,000; in March
1938 war demand had upped this to $30,637,000. Depression. While sales of automobiles in the U. S. slumped notably,
foreign demand remained firm; automotive exports in March last year
totaled $28,819,000, this year $28,971,000. What the U. S. buys most
from abroad is raw materials, but U. S. commodity prices are now at a
two-year low; hence imports of non-ferrous metals were down from
$19,547,000 in March 1937 to $9,641,000 this year, tin from
$11,617,000 to $3,808,000, newsprint from $9,896,000 to $6,772,000
.
