Mexi ARGENTINA ollars 371 31 2 The decline of 71 percent in imports from Argentina during 1938 resulted largely from changes in the crop situation and in the volume of industrial activity in the United States. During 1937, owing to the preceding year's drought in this country and the expansion in domestic business, heavy purchases were made of Argentine cereals, linseed, wool, and hides, with the result that the value of imports from Argentina in that year, amounting to $138,940,000, was the highest figure since 1920. In 1938, however, abundant crops in the United States, together with the economic recession, obviated the need for such large purchases of Argentine primary products, and there was a sharp slump in imports from the fall of 1937 through the middle of 1938. Lower prices, particularly of hides and wool, contributed to the decrease in import values. MILLIONS OF DOLLARS (Logarithmic Scale) 300 200 100 90 80 70 60 50 GENERAL IMPORTS EXPORTS, INCLUDING REEXPORTS 1901-1905 1906-1910 1911-1915 1916-1920 1921-1925 1926-1930 1931-1935 1936-1940 Figure 8.-Trade of the United States With Argentina. D.0.9139 In the imports from Argentina, which consist primarily of crude materials and foodstuffs, the items of flaxseed, raw wool, hides and skins, canned beef, and quebracho extract, ranked in 1938 in the order given. These five imports comprised approximately 85 percent of the trade; whereas these, together with corn and feeds (which were negligible in 1938), were approximately 90 percent of the total in 1937. United States exports to Argentina decreased only 8 percent in 1938, notwithstanding economic conditions in Argentina were less favorable than in 1937 and the exchange control operations continued to hamper the importation of American merchandise. In contrast with 1937, Argentina experienced a partial failure of wheat and corn crops, sharply reduced exports from the 1937 record total, and lower world prices, all of which tended to create a year of gradually declining prosperity for the Republic. The depressing effect of the developments in 1938 on economic activity was modified, however, by the ample supplies of foreign exchange carried over from the large sales of Argentine products in world markets in 1937. The investment of these sums in new and replacement machinery, vehicles, and specialties brought the value of United States exports to Argentina to $86,793,000, as compared with $94,183,000 in 1937. Among United States commodities exported to Argentina in 1938, machinery and vehicles comprised, as usual, a large proportion of the total. Exports in this category, valued at $59,140,000 in 1938, or only fractionally less than in 1937, represented more than two-thirds of total exports to Argentina. Exports of aircraft were 40 percent larger and those of agricultural machinery and tractors 25 percent larger than in 1937, while sales of automobiles and parts: declined only moderately, from $25,420,000 in 1937 to $24,635,000 in 1938. The decrease in sales of automobiles to Argentina, together with decreases in shipments of radio apparatus, well and refinery machinery, and typewriters, brought the total for the entire group to a slightly lower value for the year. The principal commodities outside the machinery items exported in smaller quantity and value during 1938 were lumber, cooperage, tinplate and other metal products. There were reductions also in a wide range of less important items, including rice and potatoes. Shipments of United States potatoes to Argentina reached unusual proportions during 1937 as a result of a short potato crop in that country; but with the return to normal production in 1938, exports of potatoes slumped sharply. Table 11.-Principal Commodities in Trade of the United States With Argentina 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. nd se gentins Table 11.-Principal Commodities in Trade of the United States With Argentina— Continued 1 Figures for 1929 and 1932 have not been adjusted for minor transfers in classifications of later years. BOLIVIA Since United States exports to Bolivia pass through bordering countries, official statistics, which do not show transshipments, understate the amount of trade with that country. Similarly, since shipments of Bolivian tin are not made directly, but reach the United States after being smelted in the United Kingdom, import statistics are not complete. According to United States statistics, exports to Bolivia decreased from $5,863,000 in 1937 to $5,395,000 in 1938, while direct imports (for consumption) were $344,000, as compared ! with the 1937 figure of $589,000. The following were the leading United States exports to Bolivia in 1938: Machinery and vehicles valued at $3,026,000 ($2,792,000 in 1937), of which automobiles (including parts and accessories) represented $886,000 ($1,192,000 in 1937), mining and quarrying machinery $462,000 ($589,000 in 1937), and aircraft $254,000 ($258,000 in 1937); metals and other manufactures, $539,000 ($710,000 in 1937); chemicals and related products, $292,000 ($277,000 in 1937); petroleum and products, $277,000 ($327,000 in 1937); and raw cotton, 3,600 bales at $224,000 (4,000 bales, $321,000 in 1937). Among the imports, antimony ore amounted to 2,265,000 pounds valued at $159,000 in 1938 (2,093,000 pounds, $170,000 in 1937) and crude rubber to 465,000 pounds at $53,000 (52,646 pounds, $13,149 in 1937); Brazil nuts, tungsten, and tin were smaller in value than these two items. BRAZIL Following the trend of trade with the world, United States commodity exchange with Brazil declined in value during 1938 as compared with 1937, although remaining at least with regard to our exports to that country-generally above the level of the years immediately preceding 1937. The proportion of our total exports sent to Brazil remained at 2 percent, a ratio which has varied but slightly since 1934, while the proportion of our total imports furnished by Brazil increased to 5 percent, the highest ratio since 1934. The decrease of 9.7 percent in the value of exports to Brazil in 1938, as compared with the year preceding, consequent to a slight business recession paralleled the trend in Brazil's generally smaller volume of imports in 1938. Uncertainty over world conditions, lower market prices for some of Brazil's main export products and a correspondingly lower income therefrom, and, to some extent, reaction to the unusual circumstance of a surplus of import values over export values, which existed in the first 4 months of the year-these factors all affected purchases of United States goods. Exchange was made available for American imports after delays of several weeks following presentation of documents and deposit of Brazilian funds by Brazilian importers. That competition in the Brazilian market remained severe for our goods is indicated by the fact that the United States, which was superseded in first place by Germany in 1936, continued to occupy a secondary place in 1938. Export Commodities. The decrease in United States exports of finished manufactures to Brazil was, however, quite moderate (from $55,112,000 in 1937 to $51,627,000 in 1938), and this class of goods rose in importance from 81.3 percent in 1929 and 80.7 percent in 1937 to 83.7 percent of the exports in 1938. Exports of manufactured foodstuffs, although always a minor part of the trade, have shown a downward trend over a period of years, largely because of a lessening of Brazil's dependence upon foreign wheat flour and other grain products. Crude foodstuffs now form a larger part of exports than manufactured foodstuffs. The value of this class declined somewhat as compared with 1937, principally in such products as wheat and some of the fresh fruits. Shipments of fresh apples, however, increased in value. Semimanufactures and crude materials from the United States have recently been entering Brazilian markets in growing volume, but they 10 GENERAL IMPORTS EXPORTS, INCLUDING REEXPORTS T D.0.9140 1901-1905 1906-1910 1911-1915 1916-1920 1921 -1925 | 1926-1930 1931-1935 1936-19401 Figure 9.-Trade of the United States With Brazil. were not so large a proportion of total exports in 1938 as in 1937— although higher than in 1929. A noteworthy decrease in this group was in tinplate and taggers' tin, the value of which declined to $1,430,000 in 1938 from the unusually high figure of $3,392,000 in 1937. Import Commodities The value of United States imports from Brazil declined 19 percent as compared with 1937, partly as a result of the lower prices of coffee and cocoa. Coffee was, as usual, the principal import from Brazil, and Brazil furnished a larger proportion of our total coffee imports in 1938 than in other recent years. The decline in prices of Brazilian coffee late in 1937, as a result of that Government's action in modifying its control of coffee exports and reducing the export tax, stimulated United States purchases, so that imports of Brazilian coffee increased to slightly more than 1,200,000,000 pounds in 1938 from 876,000,000 pounds in 1937. These figures represent 60 percent and 52 percent of our total imports of coffee in the two years, respectively. The drop in prices, however, brought the value of coffee imports to $67,426,000 from $70,578,000 in 1937. The quantity of coffee received from Brazil in 1938 was exceeded only in 1931, when shipments under the so-called |