The Meaning of Foreign Trade for Agriculture

The author of this article deals with basic considerations in foreign trade. He argues that the foreign-trade situation determines the fundamental nature of the agricultural problem in the United States and that it is now more rather than less significant than formerly. From a broad historical and economic analysis, he concludes that no creditor nation can indefinitely maintain a favorable trade balance to get rid of its surplus production. The ultimate consumption-production balance must be domestic, and domestic consumption must be stepped up when an unfavorable trade balance appears. But this does not mean resorting to a self-sufficient economy. On the contrary, he argues, maintaining the international exchange of goods at a high level in itself makes for increased domestic consumption and general prosperity.