Music Trade Review
Issue: 1921 Vol. 72 N. 10 - Page 3
Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
TOU
THE
VOL. LXXII. No. 10
Published Every Saturday by Edward Lyman BUI, Inc., at 373 4th Ave., New York. March. 5, 1921
< < w
OOK at the atlas and not at the map" is the advice offered by one of the big national magazines to busi-
I
ness men of the United States in general. In many particulars this admonition is well worth con-
I
sideration, for there are many who lack the vision to see the important part played by international
•
»trade in the building up of the prosperity of any one country.
Export trade in musical instruments as such is certainly far from being active, due to a number of causes
beyond the control of those American manufacturers who are really enthusiastic over the possibilities of foreign
business. To neglect domestic problems in order to go after export trade would be foolish at this time, for the
results would not warrant the effort. But there is such a thing as watching the conditions in foreign markets,
studying the situation as it may change for the better, so as to be prepared to take advantage of favorable op-
portunities that undoubtedly will offer themselves for getting into the field of international trade.
The present lull in export trade is due principally to two things—the piling up of a four-billion-dollar
trade balance in favor of the United States as against foreign countries and the high premium now placed on
the American dollar in foreign countries, which precludes foreign buyers from doing business with us on a
short-time basis. As one authority puts it, foreign buyers since the armistice piled up this four-billion-dollar
trade balance as a result of purchases which would ordinarily have been stretched out over a period of years.
Normally they would have purchased what they needed, and the balance of trade kept practically level, al-
though it was turning in our favor, but instead of taking a sufficient amount of time so that demand would
balance demand, or so that we would absorb direct securities from the other side, as England and France did in
the past, this balance piled up through immense one-sided purchasing on the part of foreign buyers in a
short time.
As it stands now the inability or unwillingness of American banks to carry long-time foreign paper has
served to put a definite check upon the export business that was growing despite the handicap of exchange,
but plans are now under way through channels opened by the Edge Act to underwrite foreign paper and busi-
ness securities and by distributing them among the public in general serve to provide an extended line of credit
that will relieve the situation somewhat.
American musical instruments found their way into South American markets, into Australasia, "Spain,
and other countries in increasing quantities during and immediately after the war, and, owing to the lack of
European competition, they succeeded in establishing themselves more or less solidly in popular favor. It is
only by watching the business thus gained, by getting a thorough understanding of the future possibilities of
the market and of the credit situation and being prepared to meet the European in the matter of prices and
terms that we can hope to continue our hold on this foreign trade.
It is known that Great Britain and other European countries, including Germany, have come to realize
that their business existence practically depends upon the cultivation of foreign markets and have entered into
that work along most elaborate lines.
Prices are shaved and terms offered that add much to the difficulties of competition, particularly to the
American who has enjoyed short-time business even in the foreign markets. In doing its part in rehabilitat-
i n g the country's industries the music trade must see to it that efforts are made to hold such foreign trade as
has been built up during the past few years as a basis for future development, whether or not attempts are made
at this particular time to expand such business.
The time will undoubtedly come when any substantial export outlet for the products of America's
musical instrument factories will prove most welcome in taking over surplus stocks that cannot be absorbed
within our own country. Foreign markets under such conditions represent insurance against slowed down or
closed factories.
TOU
THE
VOL. LXXII. No. 10
Published Every Saturday by Edward Lyman BUI, Inc., at 373 4th Ave., New York. March. 5, 1921
< < w
OOK at the atlas and not at the map" is the advice offered by one of the big national magazines to busi-
I
ness men of the United States in general. In many particulars this admonition is well worth con-
I
sideration, for there are many who lack the vision to see the important part played by international
•
»trade in the building up of the prosperity of any one country.
Export trade in musical instruments as such is certainly far from being active, due to a number of causes
beyond the control of those American manufacturers who are really enthusiastic over the possibilities of foreign
business. To neglect domestic problems in order to go after export trade would be foolish at this time, for the
results would not warrant the effort. But there is such a thing as watching the conditions in foreign markets,
studying the situation as it may change for the better, so as to be prepared to take advantage of favorable op-
portunities that undoubtedly will offer themselves for getting into the field of international trade.
The present lull in export trade is due principally to two things—the piling up of a four-billion-dollar
trade balance in favor of the United States as against foreign countries and the high premium now placed on
the American dollar in foreign countries, which precludes foreign buyers from doing business with us on a
short-time basis. As one authority puts it, foreign buyers since the armistice piled up this four-billion-dollar
trade balance as a result of purchases which would ordinarily have been stretched out over a period of years.
Normally they would have purchased what they needed, and the balance of trade kept practically level, al-
though it was turning in our favor, but instead of taking a sufficient amount of time so that demand would
balance demand, or so that we would absorb direct securities from the other side, as England and France did in
the past, this balance piled up through immense one-sided purchasing on the part of foreign buyers in a
short time.
As it stands now the inability or unwillingness of American banks to carry long-time foreign paper has
served to put a definite check upon the export business that was growing despite the handicap of exchange,
but plans are now under way through channels opened by the Edge Act to underwrite foreign paper and busi-
ness securities and by distributing them among the public in general serve to provide an extended line of credit
that will relieve the situation somewhat.
American musical instruments found their way into South American markets, into Australasia, "Spain,
and other countries in increasing quantities during and immediately after the war, and, owing to the lack of
European competition, they succeeded in establishing themselves more or less solidly in popular favor. It is
only by watching the business thus gained, by getting a thorough understanding of the future possibilities of
the market and of the credit situation and being prepared to meet the European in the matter of prices and
terms that we can hope to continue our hold on this foreign trade.
It is known that Great Britain and other European countries, including Germany, have come to realize
that their business existence practically depends upon the cultivation of foreign markets and have entered into
that work along most elaborate lines.
Prices are shaved and terms offered that add much to the difficulties of competition, particularly to the
American who has enjoyed short-time business even in the foreign markets. In doing its part in rehabilitat-
i n g the country's industries the music trade must see to it that efforts are made to hold such foreign trade as
has been built up during the past few years as a basis for future development, whether or not attempts are made
at this particular time to expand such business.
The time will undoubtedly come when any substantial export outlet for the products of America's
musical instrument factories will prove most welcome in taking over surplus stocks that cannot be absorbed
within our own country. Foreign markets under such conditions represent insurance against slowed down or
closed factories.
Future scanning projects are planned by the International Arcade Museum Library (IAML).