THE INDIA RUBBER WORLD 



E. H. Huxi.Ev. 



POSSIBILITIES FOR EXPANSION IN EUROPE. 



By E. H. Huxley, President U. S. Rubber Export Co., Limited. 

 IT is a little too early to make any very definite prophecies as 

 to future business with Europe, as most plans cannot be 

 made definite until the peace conference has concluded its labors 

 and the treaty been 

 signed, and until the 

 attitude of the gov- 

 ernments of the va- 

 rious countries in 

 which we do busi- 

 ness is known, and 

 any artificial eco- 

 nomic barriers set 

 up by government 

 action are removed 

 or made permanent. 

 The one great 

 outstanding fact is 

 the universal need 

 of m a n u f a ctured 

 products. Where 

 tliese are to be ob- 

 tained and how 

 p.iid for is the prob- 

 e m. There is 

 scarcely a country 

 of any importance 

 which, to-day, is 

 not attempting to 

 control its imports 

 by more or less 

 drastic laws and regulations ; and until these are removed, or 

 greatly modified, trade with the countries wherein they exist 

 will be more or less curtailed. The demand and the need, how- 

 ever, remain and must be supplied from some source, and the 

 natural source is the United States. Nations cannot be blamed 

 for desiring to develop their own resources and supplying their 

 domestic requirements as largely as possible with home prod- 

 ucts, but until these products can be produced, destroyed fac- 

 tories and those that have been turned to war materials must be 

 restored. That in itself creates a substantial demand. 



There is a shortage existing in most countries which cannot 

 be supplied locally, particularly in view of the extraordinary 

 efforts being made by those countries which produce manufac- 

 lured rubber goods to maintain their foreign connections and 

 iheir export trade. This is being done even at the expense of 

 liieir domestic trade, and the curious situation exists, at least in 

 England, that there is a local domestic demand which cannot 

 be supplied by local factories and yet the government largely 

 curtails imports. It would seem the part of wisdom to remove 

 all artificial economic barriers and to let commercial nature take 

 its course in the adjustment of supply and demand. 



The question of the payment for goods imported is, of course, 

 a serious one. The United States is a heavy creditor to most 

 important European nations, and those nations, naturally, hesi- 

 tate to increase their indebtedness. Trade balances cannot be 

 restored speedily by means of imports from Europe, first, be- 

 cause the material is not there to be exported, and, secondly, 

 because the United States is becoming less and less dependent 

 upon imports of manufactured products. The cessation of im- 

 port of French wines alone will be a serious handicap to France. 

 Obviously unfavorable trade balances cannot be liquidated 

 through the shipment of gold ; first, because the United States 

 has more gold now than is good for her, and. secondly, because 

 any further depletion of gold reserves abroad would bring 

 disaster there. The most feasible and likely method of payment 



seems to be by heavy investment of American funds in foreign 

 materials. 



The existing situation in England is what amounts practically 

 to an embargo against United States products, the exception 

 being small percentage allocations, but free and unrestricted 

 admission of colonial products. This situation is to be reviewed 

 in September, 1919, and it is to be hoped that it will be discon- 

 tinued and that the products of the United States will be again 

 freely admitted. 



France still continues to refuse pretty generally licenses for 

 the import of United States products, even though the need for 

 them is great. Numerous instances have been revealed where 

 France has refused permits for the import of material, especially 

 machinery, which could not be obtained elsewhere, and which 

 could not be manufactured in France. It is to be hoped that 

 relief will come after the peace treaty is signed. 



Italy is refusing import licenses for United States products 

 and advising those who have heretofore purchased in the United 

 States to purchase in England and France. Her argument is 

 that since she is already owing the United States great sums for 

 credits, loans and previous imports, this indebtedness should not 

 be increased. It is difiicult to detect the advantage to Italy in 

 owing money to France or England rather than to the United 

 States, provided she is obliged to owe the money to some one ; 

 and it would appear a rather severe penalty to refuse trade from 

 the United States, because the United States during the war has 

 sent over large credits and loaned large sums of money to Italy. 

 This situation appears to be the most indefensible, and it is hoped 

 will be speedily discontinued. 



It is interesting to observe in passing the keen interest of all 

 business men in Europe to resume commerce. Conversation 

 which one hears generally is not political and does not touch on 

 the deliberations of the peace conference, but. on the contrary, 

 is wholly commercial and wholly with a view to the speedy 

 resumption of normal trade relations. One hears many expres- 

 sions of willingness to resume trade relations with Germany, 

 which is, of course, rather surprising, but serves to emphasize 

 the rapidity with which events move and with which things are 

 forgotten. 



With the great potential possibilities, it will be a calamity 

 if the United States does not benefit by the present European sit- 

 uation and if much of the war trade does not turn lo commer- 

 cial trade. 



HIGH GEAR IN EXPORT TRADE. 



Reach out for the export trade, is the watchword of .\merican 

 manufacturers, and the word goes forth from Washington that 

 (he Government, through the Bureau of Foreign and Domestic 

 Commerce, is prepared to assist in every way it legitimately can. 

 The United States is now a creditor instead of a debtor nation. 

 During the past year it did an export business of about $6,150,- 

 000,000, as against an import business of $3,031,000,000. The 

 month of January, 1919, showed larger exports than any other 

 single month in American history. 



Reports of special representatives giving complete descrip- 

 tions of the life and customs of the people in foreign lands, to- 

 gether with the class of commodities they purchase, the prices 

 and the terms, are published every day and a compact publica- 

 lion is issued to over 6,000 subscribers. In the past few weeks 

 representatives of the Bureau of Foreign and Domestic Com- 

 merce have gone to Great Britain, France, Switzerland, Italy, 

 Denmark, Norway and Sweden, Greece, Rumania, South 

 .America, Japan, and other countries. Valuable information for 

 the rubber trade may be expected from this activity on the part 

 of this alert government department. 



"Rubber Machinery," by Henry C. Pearson, is filled wiih 

 ab:e information for rubber manufacturers. Price. $6. 



