R. Jens Vestberg, secretary to the committee of the Merchants'
Guild of Copenhagen, in a general review from "the World Markets and Denmark" during 1937, deals with his country's foreign trade in the following article.
At the opening of 1937 two difficulties marked Denmark's economy insufficient stocks of grain as a consequence of bad harvest in 1936, and a relative disproportion between import and export prices.
While the world economic curve at that time still pointed upwards, the margin between import and export prices was broadened further during the early part of 1937, thereby aggravating the currency situation to such a degree that the National Bank had to adopt a policy of credit restriction, Gradually in the course of the year the currency eased and at the same time the fall In prices on the world raw material markets afforded more favourable conditions for Denmark's purchases and finally the Danish grain crop in 1937 turned out good.
The value of Denmark's foreign trade during the first ten months of 1937 compared with the corresponding figures of the two preceding years are stated below:
Total Dench Foreign Excess of imports goods. goods imports 1935 kr. mili, kr. mil rus 1628 12 s u 1657 1427 54 12 It will be seen from these figures that the increase in 1937 both of imports and exports has been comparatively strong, and though a part of this rise is accounted for by the higher prices, the quantities too have been larger within a number of fields. While the excess imports of 1936 arose especially in the ivur last months of the year, the movement has been quite opposite in 1937, the excess imports having taken place chiefly in the first part of the year. For this reason the total excess imports of 1937, when finally summed up in January 1938, will hardly exceed by any amount of importance, the total of 1936, which was kr. 104, 000.000.
A Comparison A comparison of the quarftity of the Danish foreign trade in the first ten months of the year 1937 with the figures of the corresponding period of 1936 shows that within the group of agricultural products there has been a strong rise particularly in the exportation of eggs, beef and veal, horses, potatoes and barley, but besides there has also been some increase in the exports of the two staple products, butter and bacon. On the other hand condensed milk, cheese and grass-seed show a decrease of exports. On the import side there has within the raw materials and auxiliaries of agriculture been an extremely vigorous increase in the imports of maize due to the bad harvest in 1936, but this rise has however, to sore extent been balanced by the decreased imports of rye and wheat; the import of maize in the first ten months of 1937 aggregated 547,000 tons against 188,000 tons in the same period of 1938. Within the group of fertilizers the imports of kali and Chile nitrate increased somewhat; in return the imports of cole nitrate, including Norway nitrate, declined. As to the group: Food, drinks, eic, 1937 witnessed an increase in the imports of oranges, bananas, pears, rice, coffee and tea, but a decrease in the imports of apples, dried plums, prunes and cocoa beans. Wine imports in 1937 showed in many fields higher import figures than the year before, this holds especially good of brandy and sweet wines in casks, With regard to textiles the most conspicuous feature was the general fall experienced by all kinds of yarns. On the other hand the imports of cotton was higher, and this applied also to a number of piece goods.
The 1937 figures for fuels like coa cinders and coke, oils of various kinds and petrol were materially higher than those of the preceding year; the increase of imports was especially pronounced within the groups of petrol and certain duty free fuel oils.
The timber group showed a decline in the imports of sawn pine wood—but the imports of balks, hewn timber and sleepers decreased also somewhat. Most import sections within the iron and steel group exhibited a rather heavy increase, but the employment within thi branch of industry was also very extensive throughout the greater part of the year, and particularly within shipbuilding. The declining housebuilding activity, on the other hand, entailed a smaller demand and thereby a smaller import of iron girders (I ana U sections). Also the imports of rails as well as copper and zinc in sheets, tin-plates and tubes displayed lower figures in 1937 than they did the preceding year.
In 1937 the export industries suffered a considerable setback in the export of cocoanut oil and a small decrease in the export of soya bean of. Also the export of Portland cement and boat motors declined heavily, the export of motor cars and new tonnage on the other hand displayed great progress, and the same holds good of machines for stone-, chalk-and earthenware-manufactures and of dynamos and electric motors. Firelly there was a heavy rise in the export of cryolite.
Government Regulations Throughout the whole of 1937 the Danish foreign trade has as before been obliged to submit to the extensive Government regulations, which also were in force the preceding years. Though all urban trades in the beginning of the year by a joint liquidation proposal tried to have introduced some lightening of the import regulations, the Government and its parties in the Rigsdag rejected the proposal flatly. The Act of March 31 1937 conferred no facilitations whatever on trade and industry in relation to earlier times. So Danish trade has again this year had to fight against all the drawbacks, which an import regulation system, like the Danish one, carries with it to the detriment of the large consuming population, as the merchant in a variety of cases has been prevented from making his purchases in the right places to the right extent and at the right time.
New Agreements introduced for the settlement of the trade between the two countries, Germany's import from Denmark within each quarter being dependant on the amount credited to the clearing account in the course of the preceding quarter in payment of Danish import of German goods. However, not the whole amount paid into this account was used for the direct benefit of the export, as various expenses were to be covered and the "currency hump", which Denmark in-hented from 1936, had to be paid off. The effect of this new system was, consequently, that Denmark during the first ten months of 1937 increased her import from Germany by kr. 49.000.000, without raising her export simultaneously. As the trade agreement between Denmark and Germany for the year 1938—signed in Copenhagen on November 27 1937—is based on the same principle as the agreement of December 1936, it should be possible in 1938 to increase the export in a higher degree than the import. However, keeping in mind that the demand for German goods in 1937 by no means was met to the full in spite of the increased import, 1938 hould afford a possibility of a fresh rise in the trade figures between the two countries, if the authorities in charge of the currency regulation only in due time will grant sufficient import licences for sugh groups of merchandise as are demanded by Danish importers and consumers alike. This will not fail to increase the export, and through the increased purchasing power of the export trades, the home trades too will get a natural stimulus, which is far more valuable than the stimulus created by setting up import barriers, because the latter procedure almost invariably leads to increasing expenses. And to a sound trade it is of vital importance to keep expenses on a competitive level.
Text read from the printed page and cleaned; old type leaves the occasional error.