Record Surplus

Ever since the World War transformed the U. S. from a debtor to a creditor nation, it has been economically unhealthy for the U. S. to export more goods than it imports. (Debts cannot be collected unless the U. S. buys more from its debtors than they buy from it.) Last week the Department of Commerce reported that 1938's export surplus of $1,133,567,000 was the largest since 1921.

Reason for the 17-year record: Depression II cut imports, notably raw materials for manufacture, 36% to $1,960,528,000, while steadier business conditions abroad, plus demand for armaments and food, held U. S. exports at $3,094,095,000, a drop of only 8%.

Foreign consumers met the difference in several ways--with U. S. money left in Europe by tourists, sent home by emigrants or paid to foreign shippers carrying U. S. goods. But the principal way they paid for goods was with gold, of which the U. S. now holds 60% of the world's monetary supply.

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