cigarettes, aircraft, cotton wearing apparel, and automobiles, the values of which varied from $400,000 to nearly $900,000.

The principal imports from these islands are fuel oil and partly refined petroleum products. These products were valued at $19,051,000 ($19,748,000 in 1937) out of the total imports for consumption of $20,118,000 in 1938 ($20,339,000 in 1937). A large part of the fuel-oil imports is used for refueling vessels. Aside from the petroleum items, the principal import from the Netherlands West Indies is aloes, which amounted to 518,000 pounds valued at $154,000 in 1938, as compared with 649,000 pounds valued at $134,000 in 1937.

Dominican Republic.-Exports from the United States to the Dominican Republic in 1938 were valued at $5,696,000, as compared with $6,469,000 in 1937. This total included machinery and vehicles valued at $1,132,000 ($1,549,000 in 1937); textiles and textile manufactures, $842,000 ($919,000 in 1937), of which cotton cloth amounted to 4,710,000 square yards valued at $486,000 (3,876,000 square yards at $507,000 in 1937); metals and manufactures, $743,000 ($903,000 in 1937); vegetable food products, $672,000 ($643,000 in 1937); nonmetallic minerals, $472,000 ($597,000 in 1937); chemicals and related products, $468,000 ($491,000 in 1937); and all other articles $1,367,000, the same figure as in 1937.

United States imports for consumption from the Dominican Republic were valued at $5,829,000 in 1938 and at $7,378,000 in 1937. Principal imports in 1938 included 53,583,000 pounds of cocoa valued at $2,060,000 (37,935,000 pounds, $2,973,000 in 1937); 122,627,000 pounds of cane sugar at $1,255,000 (153,661,000 pounds, $1,710,000 in 1937); 20,608,000 gallons of molasses at $777,000 (20,792,000 gallons, $830,000 in 1937); 6,061,000 pounds of coffee at $495,000 (6,513,000 pounds, $584,000 in 1937) and 288,000 bushels of corn at $164,000 (413,000 bushels, $308,000 in 1937).

Haiti.-Exports from the United States to Haiti decreased from $4,084,000 in 1937 to $3,642,000 in 1938. Principal commodities in 1938 included cotton cloth, duck, and tire fabric, 15,234,000 square yards valued at $1,131,000 (9,227,000 square yards, $879,000 in 1937); wheat flour, 81,868 barrels at $414,000 (101,762 barrels, $629,000 in 1937); machinery and vehicles, $497,000 ($593,000 in 1937); nonmetallic minerals, $247,000 ($349,000 in 1937); and metals and manufactures, $236,000 ($284,000 in 1937).

United States imports for consumption from Haiti increased from $2,889,000 in 1937 to $2,962,000 in 1938. Coffee was the chief import in 1938-18,113,000 pounds valued at $1,027,000 (11,849,000 pounds, $847,000 in 1937) followed by bananas, 1,443,000 bunches valued at $686,000 (1,379,000 bunches, $682,000 in 1937); sisal and henequen fiber, 6,134 tons at $481,000 (5,545 tons, $616,000 in 1937); and cane sugar, 34,877,000 pounds at $355,000 (9,598,000 pounds, $99,000 in 1937).

MEXICO

Mexico was one of the leading countries to which United States exports decreased substantially in value during 1938. The marked reduction was caused by a combination of circumstances, including the upward revisions in Mexican import tariffs in January 1938 and the marked weakness of the peso; an important factor was the general business decline brought on by the conflict in the oil industry, which

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culminated in the expropriation, on March 18, of the properties of the principal petroleum producing and distributing companies. United States exports to Mexico declined 43 percent during the year as compared with 1937, or 5 times the decrease shown for our exports to the world. During the period of great business uncertainty in Mexico and of marked decline in the peso, particularly in April, exports dropped to less than two-fifths the value in the corresponding period of 1937.

The changes in the Mexican import tariff in 1938 involved a sharp upward revision in the rates on a wide range of commodities (over 200) in January 1938; and, although the increases were modified somewhat on May 1, the tariffs in force continued higher than in 1937 through August 27, 1938. At that time, the January increases were canceled with the exception of those on automobiles, including certain parts for

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GENERAL IMPORTS

EXPORTS, INCLUDING REEXPORTS

1901-1905 1906-1910 1911-1915 1916-1920 1921-1925 | 1926-1990 | 1931-1935 | 1936-1940

Figure 7.-Trade of the United States With Mexico.

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assembly. On August 30, reductions were made in the rates on certain commodities, but automobiles and parts were subjected to the increased rates from January to the end of the year.

The Mexican Government levied a tax on most exported products effective August 9, 1938. The purpose of this tax, according to the preamble to the decree, was to enable the Government to absorb a certain percentage of the profits realized by exporters as a result of the depreciation of the peso and at the same time to provide funds with which to subsidize imports of essential products, thereby offsetting a part of the increase of prices within the country.

Export Commodities.

The most important United States exports to Mexico are machinery and vehicles, and the value of these dropped nearly three-fifths in 1938 to $21,576,000 from $50,894,000 in 1937. The restriction of buying by Mexican Government agencies in 1938 as a result of declining Federal revenues was an important factor in this connection. During 1937 agencies of the Government purchased approximately $10,000,000 worth of equipment and supplies in the United States, including roadbuilding machinery, railway equipment, farm tools and machinery, well-drilling and refining installations, and machinery for a new Government-owned sugar mill. Exports of all these items to Mexico in

1938 were much smaller than in 1937. In this group, also, exports of automobiles, including parts and accessories, decreased to $6,523,000— or by 61 percent as compared with the 1937 valuation.

The next most important group of exports-metals and manufactures-fell off nearly one-half, from $18,892,000 in 1937 to $9,605,000 in 1938. There were marked reductions in practically all exports of metal manufactures, including tubular products and other iron and steel items, which comprise the major part of the total in this category. The value of exports of wood and paper decreased nearly one-half, of textile fibers and manufactures, nearly one-third, and of nonmetallic mineral products and chemical products, about one-fifth.

Exports of vegetable food products to Mexico increased from $3,060,000 in 1937 to $5,226,000 in 1938. The Mexican grain harvests were short in 1937; hence grain exports became an important item in the trade during the autumn of 1937 and they showed a marked increase in 1938. Shipments from the United States in the year totaled 2,894,000 bushels of wheat and 991,000 bushels of corn. The Mexican Foodstuffs Marketing Regulating Committee negotiated these grain purchases. This committee has authority to control prices and subsidize the importation of certain articles of necessity under the decree which initiated the Mexican export tax.

Among other food products, lard exports, which increased considerably in 1937 over the low figure of 1936, showed a further moderate increase in quantity in 1938. Since prices declined, however, the value of this item was somewhat lower in 1938 than in 1937. Import Commodities.

The value of imports from Mexico decreased 18 percent in 1938-a smaller reduction than in total import trade. Some commodities (including copper, chicle, sisal, and crude petroleum), which rank among the first eight leading imports of Mexican origin, showed, however, decreases in value that ranged from approximately 30 percent to 40 percent. There were also large relative decreases in United States purchases of zinc, antimony, petroleum derivatives, fresh vegetables, goat and kid skins, and numerous minor items.

Imports of a number of leading commodities in the trade were larger in value in 1938 than in 1937. Bananas, the leading import from Mexico in 1938, increased about 10 percent in value, although shipments dropped off slightly. The values of coffee, cattle, and raw cotton, also among the first eight imports, increased 8 percent, 38 percent, and 55 percent, respectively. Imports of cotton in 1938 were the largest in quantity since 1929. Imports of cattle from Mexico increased from 165,000 head in 1936 and 199,000 head in 1937 to 286,000 head in 1938. Of the 1938 total, approximately 82 percent were full-duty non-quota cattle, while 18 percent participated in the low-duty import quota.

General and specific factors affecting import trade with Mexico in 1938 were numerous. Notable among these were the recession in business activity in the United States, the improvement in the domestic crop situation, and, especially with reference to the increase in cattle imports, improved grazing conditions in northern Mexico and the sustained demand for feeder stock in the United States. The possible favorable influence on Mexican exports of the depreciation in

the exchange value of the peso was partially offset during the latter months of the year by the export taxes which were imposed.

Gold and Silver.

As is frequently the case in trade with Mexico, United States imports of gold and silver in 1938 exceeded the value of merchandise imports from that country. Net gold imports were valued at $36,472,000, as against $38,482,000 in 1937. Net silver imports were valued at $41,715,000, as compared with $30,203,000 in 1937.

Table 10.-Principal Commodities in Trade of the United States With Mexico 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 10-Principal Commodities in Trade of the United States With Mexico—

Continued

1 Figures for 1929 and 1932 have not been adjusted for minor transfers in classifications of later years.

2 Less than 500.

703

195

261

66

1, 148

696

748

183

556

415

10, 457

4, 709

6, 937

4,852

3 Household refrigerators only.

4 Not shown separately.