Because exports of foodstuffs and manufactured articles each increased in 1938, Europe's participation in the total export trade of the United States rose from 40 percent in 1937 to over 44 percent in 1938. Exports of crude foodstuff increased from a value of $57,900,000 in 1937 to $166,200,000 in 1938, the latter figure being the largest recorded for any year since 1927; exports of manufactured foodstuff increased from $99,200,000 to $107,800,000; and exports of finished manufactures were $451,000,000 and $461,700,000 in the two years, respectively. The United Kingdom and the countries of northwestern and central Europe were the largest purchasers of United States foodstuffs in 1938, and the United Kingdom and the Soviet Union ranked first and second among the European markets for United States manufactures.

Table 18.-Trade With Europe, by Commercial Regions and by Countries NOTE.-Millions of dollars. For figures adjusted to include grain shipments to Europe through Canada see table 1.

1 Turkey in Europe is included with Turkey in Asia.

2 Trade with Austria beginning May 6, 1938, and that with the Sudeten area, as far as ascertainable, beginning November 10, 1938, are included with the statistics for Germany.

3 See note on table 19.

4U. S. S. R. in Asia included with U. S. S. R. in Europe in all years shown.

5 Less than $50,000.

190841-40- -5

The various countries of Europe purchased unusually small amounts of United States cotton in the latter half of 1938. As a consequence, the total value of United States exports of crude materials to Europe, which are comprised mainly of cotton and tobacco, declined from a value of $441,700,000 in 1937 to $346,800,000 in 1938. Exports of tobacco to Europe in 1938 were slightly larger in quantity and in value than in 1937. Semimanufactured exports, which include metals and certain petroleum products, totaled $288,100,000 and $228,900,000 in the two years, respectively. Iron and steel scrap and exports of steel-mill products, though large in 1938, were considerably under the high 1937 figures.

On the import side, the marked recession in business activity in the first half of 1938, the improved yields of United States crops, and lower prices were the major influences in the low level of trade with Europe in 1938. Imports of crude materials and semimanufactures showed a greater percentage decrease than imports of finished manufactures; and, among the foodstuffs, imports of grain, barley malt, and vegetable oils dropped sharply, while alcoholic beverages, cheese, and pork products declined only moderately.

Table 19.-Percentage Distribution and Changes in Trade With Principal
European Countries

NOTE.-For adjusted totals for Europe as a whole, see table 1.

1 Percentages are not shown, since in this period large quantities of United States cotton reaching this country were accredited in our statistics to other countries.

For purpose of comparison, trade with Austria is included with that for Germany in all years shown in this table.

AUSTRIA

Beginning May 6, 1938, United States trade with Austria is included with the statistics for Germany. The extent of the United States trade with Austria has never been fully shown, however, by the United States statistics, for these have always indicated a relatively

small trade with Austria. In 1937, the latest complete year for which data are available, direct exports of United States goods, including reexports, amounted to $3,086,000, while imports (for consumption) were $5,557,000. In the period from January to May 6, 1938, the respective export and import totals were $746,000 and $1,308,000. Austria has always purchased a substantial amount of United States cotton, which passed through the free ports of Hamburg and Bremen and was largely credited to Germany.

The principal imports into the United States from Austria in 1937 were: Textile manufactures valued at $1,508,000, of which cotton manufactures represented 39 percent, wool manufactures 31 percent, and silk manufactures 21 percent; nonmetallic minerals valued at $1,146,000, with precious stones and imitations making up 49 percent of this sum and magnesite 31 percent; animal products valued at $1,151,000, in which cheese, leather, and leather manufactures, and undressed furs were the leading items; wood and paper, $463,000; metals and manufactures, $474,000; and all other articles, $815,000. BALTIC STATES

The aggregate value of United States general imports in 1938 from the three Baltic States-Estonia, Latvia, and Lithuania-was slightly smaller than that in 1937. Imports from Latvia declined from $767,000 to $558,000, as a result primarily of smaller receipts of butter and clover seed, and those from Lithuania decreased from $1,172,000 to $922,000, owing to smaller imports of butter and wood pulp. Mainly as a result of larger shipments of wood pulp, total imports from Estonia valued at $1,244,000 in 1938 were about $307,000 above the total of $937,000 in 1937.

Import Trade.

Principal commodity imports in 1938 from these countries were as follows:

From Estonia.-Hams, bacon, and other salt pork, 680,000 pounds valued at $151,000 (483,000 pounds, $116,000 in 1937); and sulphite wood pulp, 26,104 tons at $928,000 (17,607 tons, $599,000 in 1937). From Latvia.-Butter, 33,600 pounds at $7,000 (1,497,000 pounds, $286,000 in 1937); sardines in oil, 789,000 pounds at $101,000 (804,000 pounds, $105,000 in 1937); clover seed, 124,000 pounds at $20,000 (1,056,000 pounds, $127,000 in 1937); and 3,869 tons of sulphite wood pulp at $151,000 (1,959 tons, $78,000 in 1937)..

From Lithuania.-Fresh and frozen pork, 1,670,000 pounds at $198,000 (1,670,000 pounds, $218,000 in 1937); butter, 544 pounds at $98 (553,000 pounds, $102,000 in 1937); and sulphite wood pulp, 10,536 tons at $392,000 (19,833 tons, $682,000 in 1937).

Export Trade.

United States statistics of exports to the Baltic States greatly understate the amount of American merchandise which ultimately enters these three markets, since the goods must pass through bordering countries to which they are often accredited. For this reason commodity statistics are not shown in this analysis. United States totals may be seen in table 18. According to the official statistics of the respective countries, the value of their imports from the United States in 1938 (converted to United States dollars) was as follows: By Estonia, $1,872,000 ($2,446,000 in 1937); by Latvia, $2,788,000

($3,154,000 in 1937); and by Lithuania, $1,387,000 ($1,244,000 in 1937). According to Estonia's statistics, raw cotton represented 46 percent of the value of that country's purchases from the United States, while crude sulphur was 5 percent and automobiles (including parts and trucks) were 9 percent of the total. Of Latvia's imports from the United States, raw cotton made up 36 percent, automobiles (including parts and trucks) 14 percent, and leaf tobacco 4 percent. In the Lithuanian imports from the United States in 1938, fruits were 9 percent; raw cotton, 7 percent; leaf tobacco, 4 percent; lubricating oil, 9 percent; and dyes and colors, 3 percent.

BELGIUM

The decline in the value of United States trade with Belgium in 1938, as compared with 1937, was relatively larger than that for any other principal European country. This decline is made to appear

Figure 14.—Trade of the United States With Belgium (Imports Negligible, 1916–18).

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less significant, however, when it is noted that United States exports to Belgium in 1938 were over 50 percent higher than the annual average from 1931 to 1935, while imports from Belgium were higher by 43 percent than the average for those years. the percentage increases in United States trade with Europe during Both these gains exceeded the comparable period.

The actual change in shipments to Belgium, as shown in the United States statistics, is somewhat overstated in 1938. Belgium serves, particularly, as a large assembling and reexport center for automobiles, and Antwerp is an entrepôt for various United States goods in transit to other European countries. The foreign-trade statistics of Belgium, which cover imports for consumption or transformation but do not include in-transit trade, show that total imports from the United States increased in 1938 contrary to the downward trend shown by the total Belgian import trade. According to Belgian statistics (converted to United States dollars), imports into that country from the United States were about $86,475,000 in 1938, an increase of 8 percent over the 1937 imports.

The drop in the value of United States exports to Belgium in 1938 was influenced by the unusually large shipments in 1937, by the price decline in 1938, and by smaller entrepôt trade in 1938. There were accumulations of stock of United States merchandise when the recession in Belgian business occurred; otherwise a material share of the trade in that year would have fallen in 1938. The trend of business activity in Belgium during 1938 in general paralleled the movement in the United States, with declining volumes in the first half of the year and a revival in the latter half.

As in the trade with other leading countries of Europe, exports of foodstuffs to Belgium increased in 1938-a consequence in part of Belgian crop conditions and more particularly of the general situation prevailing in the world trade in grain. Crude foodstuffs made up nearly one-fourth of United States exports to Belgium in 1938, compared with less than 10 percent in both 1929 and 1937. While the increase in this class over 1937 was accounted for mainly by increased shipments of corn and wheat, there was a substantial increase in exports of fruits.

Reductions were noted in exports to Belgium in 1938 chiefly in automobiles, petroleum products, metals, and other manufactured articles, although exports of raw cotton and unmanufactured tobacco also declined. Among the various exports in 1938, automobiles, including parts and accessories, retained the first rank as in 1937, but cotton, in second place in the earlier year, gave way to wheat in 1938; oil-cake, corn, lubricating oils, and gasoline followed in the order

named.

Cut diamonds continued to be the leading import item from Belgium in terms of value, representing 29 percent of the total in 1937 and 33 percent in 1938. The rest of the imports were broadly distributed, with linens, cotton floor coverings, glue stock, rabbit fur, cotton cloth, and structural steel the predominating commodities. The declines in value of these six imports ranged from 42 percent to 58 percent, and the decreases in barley malt, zinc, cadmium, and potash, among other commodities, were relatively still larger.

The decrease from 1937 to 1938 shown for uncut and engravers' diamonds in table 20 represents primarily a change in the method of reporting these imports rather than a decline in trade. Whereas both uncut and industrial gems were accredited in the 1937 statistics largely to the European country of transshipment, these items were accredited largely to the country of origin in the 1938 statistics.

Table 20.-Principal Commodities in Trade of the United States With Belgium 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.