single item of import from Italy, a position usually occupied by cheese, imports of which declined slightly in 1938. In rayon fibers, Italy supplied a larger share of our increased imports in 1938. United States export trade with Italy in 1938 presents several more noteworthy features than import trade, owing largely to developments in Italian commercial policy. The campaign for autarchy (self-sufficiency) which took final form in 1937 was intensified in its operation during 1938. It aims primarily at freeing Italy so far as possible from dependence on foreign sources of supply: however, the insufficiency of raw materials, despite the tapping of all available sources and the use of substitutes wherever possible, keeps the quantity of raw-material imports relatively high. At the present stage of MILLIONS OF DOLLARS (Logarithmic Scale) 500 400 10 209150 |1901–1905 1906-1910 11911-1915 1916-1920 1921-1925 1926-1930 1931-1935 1936-1940 the self-sufficiency movement, importations of certain types of equip- imported petroleum owing to the lack of local production, large refr eries and storage tanks have been built in the past two years to make it possible to perform the refining operations in Italy. It is to be expected that the importation of crude oil rather than refined products will be extended in future years. United States trade with Italy in 1938 was conducted under a modus vivendi signed December 16, 1937, which on the Italian side guarantees to the United States in principle a fair share in imports of articles "of material importance," this share being based on the percentage of United States participation in total Italian imports of such commodities in a previous representative period (in practice, the year 1934 was used as a basis). Under the quota system total imports of each commodity were (based on estimated requirements for the year) set in advance, and to the United States under the modus vivendi was allotted the same percentage of the total as in 1934. As the quota for all countries was in most instances considerably reduced as compared with 1934, imports from the United States suffered proportionately. In practice, the working of the modus vivendi was impaired by a delay in the establishment of the 1938 quotas for the United States, but the situation in this respect should be improved in 1939. In some 18 instances the United States quotas were short of the 1934 percentages; but, on the other hand, "long" quotas were granted for a few basic commodities. Items in which the Italian importation from the United States had a value of less than $25,000 were not considered "of material importance," and no quotas were granted for most of these items. Several minor commodities could not be exported from the United States to Italy in 1938. Under these circumstances it was to be expected that our exports to Italy should be confined largely to a small number of commodities of relatively large aggregate value, and this expectation is borne out by the statistics in table 25. Table 25.-Principal Commodities in Trade of the United States With Italy 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 25.-Principal Commodities in Trade of the United States With Italy-Con. Briar, laurel, or ivy root. Quicksilver or mercury Accordions and concertinas 2. tional purposes Filaments not exceeding 30 inches..1,000 lb.. Furniture of wood.. Cork, wood, bark waste, and shavings Marble, onyx, breccia, and other building monumental stone and manufactures. Alabaster and jet, wholly or in part manufactured in vases and other articles 2 Earthen crockery and stoneware. Talc, steatite, French chalk, and manufac tures, except toilet goods.. Passenger cars or chassis 2 Nitrogenous fertilizer materials. Original paintings, statuary, etc.. Statuary, regalia, etc., for religious and educa Works of art produced before 1830. 1,000 lb. 13, 240 1,000 lb. 17, 638 do.. number.. 18858 84 67 1,000 lb.. 3,702 417 7 1,000 lb.. 66 130 95 827 Figures for 1929 and 1932 have not been adjusted for minor transfers in classifications of later years. Not shown separately. NETHERLANDS The year 1938 witnessed somewhat lower economic activity in the Netherlands than in the preceding year, but unusually large shipments of food products caused a rise in United States exports to this market. The 1938 value of exports to the Netherlands of $96,732,000 was the largest sum recorded since 1930 and represented the highest percentage of our total exports (3.1 percent) since 1924. The increased shipments of foodstuffs more than balanced the reduced shipments of raw materials and finished goods. While the detailed list of food shipments shows declines in some products, there were marked increases in exports of corn, wheat, raisins, apples, and barley, in the order named. The increase in these five items was $14,575,000, the largest portion of which consisted of an increase of $8,774,000 in corn exports. The large increase in corn shipments is attributable to the unusual situation in the world corn trade last year because of short crops in Argentina. Total food exports in 1938 were valued at $36,292,000, as compared with $21,416,000 in 1937. Aside from food products, United States leading exports to the Netherlands in 1938 were metals and metal manufactures, mineral oils, automobiles, raw cotton, and aircraft. Exports of metal products, mainly of steel and copper, which had trebled in value in 1937, increased nearly one-tenth more in 1938 to $13,531,000. Exports of petroleum and petroleum products valued at approximately $13,000,000 were about one-fifth lower than in 1937, but considerably higher than in 1936. Aircraft exports have advanced steadily in recent years and were valued at $3,279,000 in 1938. Automobile exports at $5,104,000 were below 1937 and above 1936. In contrast with the relatively high figures for these items, raw-cotton exports at $4,386,000 had not been so low in value since 1918. These five items, together with the foods, comprised nearly four-fifths of total exports to the Netherlands in 1938. The remaining one-fifth of the trade included such important exports as leaf tobacco and lumber and a · wide range of machinery, textile manufactures, chemicals, and other products. Imports from the Netherlands decreased approximately two-fifths from the comparatively high total of 1937 to $31,448,000 in 1938. Whereas the trade in 1937 was influenced by the relatively high rate of domestic business activity and the exceptional demand for imported 1901-1905|1906-1910 | 1911-1915 1916-1920 1921-1925 1926-1930 1931-1935 | 1936-1940 Figure 19.-Trade of the United States With the Netherlands. 049151 farm products that prevailed in the early part of that year, the 1938 results reflect the less favorable market conditions and reduced needs for agricultural products from abroad. The figures of United States and Netherlands trade in this report are to be considered in the light of the fact that the Netherlands is an entrepôt not only for German and central European goods, but also for goods from the Netherlands Indies. The United States import statistics include considerable quantities of colonial products reshipped at Netherlands ports, which are declared upon entry as of Netherlands origin, and until recently they included rough diamonds, which originate in South Africa. For these reasons, United States statistics consistently overstate the trade. A similar situation also applies in statistics of United States exports to the Netherlands, but to a smaller extent than for imports. Statistics of the Netherlands for 1938, while showing smaller values than those reported by the United States, recorded a moderate percentage increase for receipts of United States merchandise and a large decrease in the value of products of the Netherlands shipped to the United States. Imports of butter, hams and shoulders, vegetable oils, and rice decreased by large percentages in 1938. Edible vegetable oil, which |