Statistics for principal imports in 1938 were as follows: Crude rubber, 45,316,000 pounds valued at $6,756,000 (36,503,000 pounds, $6,235,000 in 1937); unground pepper, 3,244,000 pounds, $178,000 (700,000 pounds, $37,000 in 1937); teakwood, 409 M feet at $88,000 (763 M feet, $175,000 in 1937); and precious stones, $101,000 ($227,000 in 1937). JAPAN, INCLUDING TAIWAN AND CHOSEN The rapid expansion in United States trade with Japan after 1934 was terminated in 1938, when the curve of both imports and exports turned sharply downward. Japan's enforced economy and restrictions on imports, representing a policy to which the Government has definitely committed that country since the China incident in July 1937, resulted in reduced purchases from practically all leading countries last year. The value of sales by the United States to Japan dropped 17 percent from the 1937 peak of $288,558,000, but the total was 17 percent larger than in 1936. Imports into the United States in 1938 were likewise affected by the situation in Japan and by the business slump in this country during the early months of the year. General imports of Japanese goods fell 38 percent from the 1937 total and 26 percent as compared with 1936. Accordingly, Japan's share in our total foreign trade dropped to the lowest point in a number of years, as will be noted from the figures in table 43. The excess value of our exports to Japan over imports from that country totaled $112,900,000, the highest figure on record in this connection. Export Commodities. Raw cotton has been for many years the primary commodity in United States export trade with Japan, but during the past two years 10 1901-1905 1906-1910 1911 1915 1916-1920 1921-1925 1926-1930 1931-1935 1936-1940 L 0.0.9162 there has been a considerable decline in the value of cotton shipments, influenced in part by the drop in United States cotton prices. While the 1938 volume increased slightly over that of 1937, the value of cotton exports to Japan dropped by $8,874,000. Compared with 1936, however, 1938 cotton shipments showed a decline of 24 percent in volume and 40 percent in value. Changing conditions in Japan have contributed to this decline. After the outbreak of Sino-Japanese hostilities in 1937, a notable shift occurred in Japan's industrial set-up, which in turn affected the character of import trade. In the past two years Japan has concentrated its efforts on the expansion of heavy industries, rather than on the export industries. Severe import-control regulations have been enforced, particularly on imports of materials for peacetime industries, and the use of cotton for domestic consumption has been banned. Consequently, our raw-cotton trade with Japan has suffered a decline, accounting for only 21 percent of our total exports to Japan in 1937 and 22 percent of the total in 1938, compared with 43 percent in 1936. On the other hand, exports of power-driven metalworking machinery for use in the development of Japan's heavy industries advanced from a small proportion in 1936 to nearly 10 percent of our exports to Japan in 1938. In the face of Japan's exchange and import restrictions, only a few essential products, such as crude petroleum, gasoline, copper, and aircraft and parts, were exported in amounts greater than those of 1937. Practically all other leading items registered declines. Principal commodities exported in appreciably smaller quantity and value in 1938 than in other recent years included wood pulp, lumber, passenger automobiles, motor trucks and busses, and chemical products. Exports of iron and steel products, including scrap iron, were only about half as large in value in 1938 as in 1937, but almost twice as high as in 1936. More complete information than can be given in this bulletin on Japan's economic situation, and also on its import restrictions and changing trade position, is available in a mimeographed statement prepared by the Far Eastern Section of the Division of Regional Information of this Bureau and released by the Department of Commerce, July 27, 1939. Import Commodities. Raw silk accounted for 63.5 percent of United States imports for consumption from Japan in 1938, compared with 51 percent in 1937. Nevertheless, the value of 1938 purchases declined by 16 percent, owing to smaller takings by American silk mills and to lower silk prices during the early months of the year. The larger percentage accredited to silk in our imports from Japan is therefore the consequence of the general decline in imports of other Japanese commodities, rather than of any improvement in the silk trade. It is noteworthy that declines occurred in purchases of every leading import commodity in our trade with Japan, compared with 1937 and 1936. Increased production costs as a result of Japan's control measures advanced prices to a point where Japanese manufactured products were less competitive in world markets. Moreover, American consumers continued to show slackened interest in the sundry products of Japanese industries. Notable declines were registered in imports of canned tuna fish, crab meat, undressed furs, cotton piece goods, cotton rugs, china and potteries, electric bulbs, toys, and other manufactured products that held a more favorable position in the trade a few years ago. Table 43.-Principal Commodities in Trade of the United States With Japan, Including Taiwan and Chosen 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 43.-Principal Commodities in Trade of the United States With Japan, Including Taiwan and Chosen Continued 2 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. MILLIONS OF DOLLARS (Logarithmic Scale) 200 116 10 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. |