Table 43.-Principal Commodities in Trade of the United States With Japan, Including Taiwan and Chosen-Continued

? Not shown separately.

3 Figures for 1929 and 1932 have not been adjusted for minor items transferred in classifications of later years

NETHERLANDS INDIES

After an increase of 82 percent in 1937, United States exports to the Netherlands Indies increased only 10 percent in 1938, to a value of $27,518,000. Business and economic conditions in the Netherlands Indies were more prosperous in 1937 than at any time in the preceding four or five years; and. though less satisfactory in 1938, business con

tinued relatively active in comparison with a few years ago. The depreciation in the guilder following the departure of the Netherlands from the gold standard late in 1936, the large world demand for products of the Netherlands Indies in 1937, and a grant of funds from the mother country in 1937 were all favorable to expansion in business and in the import trade of those islands. The expenditure of large sums for road construction, irrigation and sanitation projects, improvement and extension in estate and mining enterprises, and expansion in petroleum production called for greater use of equipment which the United States is in a position to supply.

The principal United States goods which were exported to the Netherlands Indies in 1937 in greatly increased quantity included well and refinery machinery, tubular products, tin plate, corded tire fabric, fertilizers, and automobiles. The corded tire fabric was shipped to the branch factory of an American tire company which materially increased its output in 1937, while the expansion in fertilizers in that year is explained by the increase in sugar acreage.

In 1938 shipments of the above-named products were smaller than in 1937, though relatively large in comparison with exports in other recent years. The gain in the value of the export trade in 1938 over that of 1937 was due almost entirely to exceptionally large shipments of airplanes. Orders for the aircraft were placed in 1937, but shipments were made largely in 1938.

The United States is the leading foreign market outside of the Netherlands and the nearby entrepôt port of Singapore for products of the Netherlands Indies. Merchandise imported into the United States directly is considerably larger in value than our exports to these islands. Many Netherlands Indies products also reach the United States via the Netherlands, Hong Kong, and Singapore. A marked increase has occurred, however, in the proportion of the trade shipped direct. Direct imports reached a figure of $115,189,000 in 1937, representing the largest volume on record and the highest value except in 1920 and 1926.

By reason of reduction in our purchases and the low commodity price level in 1938, the value of United States imports from the Netherlands Indies decreased 40 percent in 1938 as compared with 1937, to a total of $68,751,000. Influenced by the decreased output of automobiles in the United States, imports of crude rubber were down nearly a third in quantity, and, reflecting the increase in our production of fats and cornstarch, imports of palm oil and tapioca were much smaller than in 1937. There were decreases, also, in imports of sisal and kapok fibers, straw hats, tin, and goat and kid skins. Some shift from Japanese tea to East Indian teas in the United States markets resulted in larger imports of tea from the Netherlands Indies. Imports of pepper increased over the relatively small figure of the preceding year.

Table 44.-Principal Commodities in Trade of the United States With the Netherlands Indies

NOTE. Data for individual export items include only United States products. Import commodities are "general imports" in 1929 and 1932 and "imports for consumption" in 1937 and 1938.

Table 44.-Principal Commodities in Trade of the United States With the
Netherlands Indies-Continued

Valed at $85.500.000, United States exports to the Philippine Islands in 1988 were larger than in any rear store 1921. even exceeding the boom year 1929 by $1.000.000 As an export market the Pashmines, for the first time, ranked eighth last year, compared with Twelfth place in 1987. Japan was the inbr Far Eastem country, the Tited Kingdom, France, Germany, and the Netherlands the only European countries, and Canada and Argent the only American commities with a larger share in our experime With 58 percent of the total Philippine import business, Amentin e Shed the greatest proportion of the market in the history of made between the

Export Commodities.

This improved position was largely the result of marred shipments of cotton piede goods, which exceeded by 150 gerent shipments to Cuba, the second-best market for cotton textes Ong to the SinoJapanese situation existing throughout 2558, a considers que part of the Philippine texture trace held by Zagan in other parent years in both cotton and rayon goods was diverted to the Tired States. Exports of milasival machinery reach the same high levou as m the previous yout, oume langor I commed mining

Revity in the Philopme Islands Theressed batting and construetion, both private and pubie, 4000anzod for cost greater

shipments of certain iron and steel products; while the same factors, together with mining activity, were responsible for maintaining at a high level our exports of electrical machinery and apparatus. Although some of the increased business in electrical lines, notably that in electric motors and industrial equipment for the mines, has gone to Great Britain, the United States retains its dominant position in the market, with about 85 percent of the total trade.

A general reduction in purchasing power in the islands as a result of lower agricultural prices was responsible for diminished demand for automotive products. Exports of the main petroleum products to the islands compared favorably with the high shipments recorded in

1936. Exports of fuel oil were influenced by increased sales to the mines, and demand for gasoline also was active. Trade in medicinals and pharmaceuticals maintained practically the high level reached in 1937. Although Philippine production of paints increased substantially, sales to the islands held up well, owing to steady demand from both government and private purchasers.

On a quantity basis, shipments of wheat flour to the Philippines were the highest on record, and only in 1929 was the value exceeded. Scarcity of Philippine rice and high prices (in contrast with low prices for flour) were responsible. Less severe competition from Japan influenced the trade in canned fish, which showed a value gain of 34 percent over the 1937 trade. Notwithstanding continued competition from the Netherlands, exports of canned milk declined only slightly in 1938, and total trade in dairy products was somewhat higher. The popularity of American cigarettes in the Philippine market continues unabated, and shipments reached a record value of over $5,000,000 in 1938. Practically all Philippine imports of tobacco products come from the United States, the only important exception being certain quantities of leaf from the Netherlands Indies to be used for wrappers of expensive cigars.