The Balance Tips

A high tariff and an adverse trade balance--this is the anomalous condition brought about in this country by a peculiar set of economic conditions. When the Fordney-McCumber Tariff was enacted economists felt that it would largely cut off Europe's opportunity to pay its debt to this country in goods. Imports into the United States during March amounted to $402,000,000. This is the highest figure since August, 1920, and reflects the current trade boom and its increased purchasing. Since imports are so largely raw materials, it also reflects heavy current manufacturing. Meanwhile our exports have continued to dwindle; they totaled only $341,000,000 in March, leaving an " unfavorable" trade balance of $60,000,000 against us. Not since August, 1914, has such an unfavorable trade balance occurred, and never before in the history of this country has there been one so large. The meaning of the occurrence can be and is being variously interpreted. In the long run, as Secretary Hoover has pointed out, it is a wholesome and natural event, indicating the possible exporting of our abnormal surplus of gold abroad, and constituting a payment by Europe of her debt to us in the form of goods.