86 IOWA DEPARTMENT OF AGRICULTURE. 



That is all true, but as I say there has been a reason for it. We have 

 lost trade with continental Europe, our exports to Europe have diminished 

 our exports to South America are practically at a stand still; and but 

 for the enormous increase of exports to the Orient we would have been 

 way behind, and those exports are caused by conditions that are temporary 

 in their character. 



I beg you indulgence while I give a little statement of the condition 

 of our export trade generally. Those who have assumed to drag the 

 whole country by the heels into a possible trade war with Europe, and 

 who, — ignoring the reciprocity preventive in the Dingley law, will prob- 

 ably point to our increase of exports for the fiscal year 1905 over 1904 

 as proof that our foreign trade is all right, that there are no screws loose, 

 and that there is not a cloud on the commercial horizon portending any 

 trouble. They will point to a total export gain of $57,700,000 for the 

 past fiscal year, and they will assume and claim that that proves their 

 case. Let us take all of the facts. Our gain in Asiatic trade — largely 

 because of the Russian war-xwas $67,500,000 or nearly 10,000,000 more 

 than our increase with the world. The trouble is that we lost in our 

 trade to Europe 36,415,000 dollars. Our loss with Africa was 5,700,000 

 dollars. We had a gain in North America of $25,700,000 and in South 

 America of $6,450,000. But for Asia we would have had to put up with 

 a ten million dollar loss of trade with the world, and we should not over- 

 look the fact that our increase with Asia is abnormal, and not to be re- 

 lied upon after the war, and especially not, after Japan and China get 

 to work to capture and control "The trade of the Orient." 



It is all well enough to keep our commercial eye glued to the Orient, 

 but it is more important that we do not overlook Europe. There we find 

 our reliable consumers and the money that keeps our surplus in motion, 

 which in turn prevents stagnation and low prices. 



That there is trouble somewhere with our foreign trade is indicated 

 by other statistics issued by the department of commerce for the year 

 ending June 30. 1905. Taking some of its figures we find that while the 

 total increase of domestic exports ($56,415,000) standing alone, will be 

 accepted by some and claimed by others as entirely satisfactory, especially 

 when used in connection with a gain of 91,000,000 dollars in exports of 

 manufactures, the bare publication of these figures fails to tell the whole 

 story. They will probably be used freely however to show that there is 

 nothing in our trade relations calling for reciprocity or trade agreements 

 but as has been intimated that is a very misleading inference drawn 

 from only a part of the whole case. The fact is that of the $56,415,000, 

 gain in total exports, $54,000,000 was in three items only, as follows: 



Iron and steel $22,700,000 



Cotton Manufactures 27,300,000 



Leather, 4,000,000 



On those three great highly protected interests we have gained, but on 

 the other hand, what fate met some of our other manufactures 



Our agricultural implement exports fell off $2,000,000 



