Balance of Trade

Cast up last week by the Department of Commerce's Finance Division were the grand accounts of U. S. foreign trade and international payments for 1936. To foreigners the U. S. sold $2,453,000,000 worth of goods, 8% more than the year before. From foreigners the U. S. bought goods worth $2,419,000,000, an increase of nearly 20%. Result was the smallest balance in favor of the U. S. since the days of Grover Cleveland ($34,000,000 as against $236,000,000 in 1935). Furthermore, the U. S. paid out $60,000,000 more in freight and shipping charges than it took in, the net of remittances was against the U. S. by $138,000,000, and U. S. tourists spent $373,000,000 more abroad than was spent in the U. S. by foreign tourists. Though the balance of dividend and interest payments was a favorable $375,000,000 and miscellaneous transactions yielded another $30,000,000 credit, the U. S. wound up the year owing other countries $132,000,000 for goods and services.

Added to this debit was the bill for the year's staggering total of gold and silver imports--$1,210,000,000. Thus the grand total on the debit side of the U. S. ledger was $1,342,000,000.

On the credit side were the vast sums which flowed into the U. S. for safety and investment. $404,000,000 in banking funds, $792,000,000 for investment in stocks & bonds. Much of this is "hot money," so perturbing to the Administration (TIME, Nov. 23). Other items brought the grand total of credits to $1,141,000,000, leaving the U. S. in the red for 1936 by $201,000,000.

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