Wilmington journal. [volume] (Wilmington, N.C.) 1844-1895, 1851-01-17
T,I,e balance of Trade.

Of the Treasury Reacrt in which Mr.. Corwin COM
mares the exports Of the country with its imports,
and expresses his alarm at finding that we have
brought more wealth into the country than we have
sent out of it, accidental mspacing of part of two
sentences; made the argument used unintelligible
As the matter is of Importance, we here repro
duce the entire passage, corrected:
" Mr. Corwin has made another discovery when
alarms him very much. We have sent abroad IN
the past year. merchandise and specie, to the value
of about one hundred and ffty-two millions OF
dollars We have imported, in foreign goods anu
specie, one hundred and seventy-elght millons oI
dollars At this discovery, Mr.. Corwlns mar rises
on end Here, he exclaims, is an extraVaganC anu
,,nsafe mnnrtation-here is a vast debt due to for
eigners ,o..o,s - VOLT
ical economy arc often beset by similar iears "hen
thew learn, however, that the goods Whlcn we seno
ontarn greatly increased Ill value on arriving at
foreign market that in the ordinary commerce, they
are sold there for prices which cover all the expense
of their transportation and yield profit besides to
all who are concerned IN forwarding ana dlsposlng
of them, their alarm abates.
"They then begin to see that, to pursue healthy
and successful trade, our imports must exceed our
exports in value we must bring back more than we
send away. MIR. Corwin says there is a balance OF
twenty-six millions against He should have SAID
there is balance of twenty-six millions in our favor
We are twenty-six millions the richer on account OF
our foreign trade. We bring back, in the proceeds
of our goods so much more than we exported
we nave before US baSCat COPuoHIo VI tHo
Protective Policy an exceedingly clever book,
translated by Mrs. McCord, of South Carolina,
which we would recommend to the perusal OF Mr..
Corwn, before he makes another annual report to
Congress. If he were to learn nothing else from It,
he night at least be instructed that there some
absurdties completely exploded, that it is well to
avoid them in such state paper the annual Urea
sury Report if only for the sake of escaping the I'M
putation of ignorance in regard to the commonest
matters. With respect to this fancy of Mr. Corwln,
about the balance of trade it appears from Bastiats
treaties that the shrewder part of the French pro-
tectcnsts give it up too preposterous to be nsls-
ted upon. MIR. Gauthier de Romilly says: Assur-
edly wishes to call up from their graves the
defunct theories of the balance of trade,' Others,
however, like Mr.. CorWin, cling to it with certain
stod tenacity, and among these is one NJ. Lestibu-
dois who states his position thus:
1.-The amount of importation is augmenting and
surprising that of expectation. Every year France
buys more Foreign produce and sells less native
produce In 1912, the importation exceed
the expectation by two hundred millions. This APP
pears to me to prove in the clearest manner, that
native labor is not sufficiently protected, and that
provided for by foreign labor and that the
competition Of rivals Expresses our industry. \
A country may spend dssipate its previous savings
may impoverish ITSELF and by the consumption of its
national capital go gradually to ruin This is pre-
cisely what we are doing. We give every year two
hundred millions to forei gn nations"
The position here taken is precisely that of Mr.
Corwin. The French protectonists finds that France
hundred millions of francs and concludes thai
France loses two hundred millions of francs yearly
The American financier discovers that the United
States import yearly twenty-six millions of dollars
more than they export and concludes that either
lose that amount, running up debt to for
eigners. The French economist advises protective
duties the remedy SO does the American Secre
tary.
The fallacy both of the Frenchman and the Amer
ican is neatly and unanswerably refuted by Bast
at, that we copy the passage here, and inasmuch az
Mr. Corwin does not, we believe, the Evening
Post, and we are sure never read Bastat we shall
"make him compliment the Irish say, of {
copy of this number of our journal.
A merchant, one of my friends having had two
business transactions, with very different results,
have been curious to compare this subject, tht
accounts of the counter, with those of the custom
house, interpreted by Mr. Lestbudois, with the
.tion of our six hundred Legislators.
Mr.. T. dispatched from Havre vessel freightet
for the United States, with French merchandise
principally Partisan articles, valued at 2000OOf.-
Such was the amount entered at the customhouse
The cargo, on its arrival at New Orleans, had pai
ten per cent. expenses and was liable to thirty pc
cent duties, which raised it's value to 2S0,000f.
" 1t was sold at twenty per cent. profit on its orig
nal value, which being 40, 000f, the price of sal
was 320,000f., which the assignee converted int
cottons These cottons again had to pay Ior e2pen
of transportation, INSURANCE., commissions, &c
ten per cent so that wien the return cargo arrive
at Havre its value had risen to 1852 OOOf, and 1T wa
thus Or1tered at the customhouse. Finally, Mr.. I
realized again on this return cargo twenty per cen
profit, amounting to &c, 400f The eottons thus sol
for 422, 400f.
1" If Mr. Lestbudois requires it, l will send him a
extract from the books of Mr.. r. He will ther
see credited to the amount of profit and loss,-ths
is to say, set down gained, two sums, the one
10000, the other of 70, 400 francs, and Mr.. T
feels perfectly certain that regards these, there
no mistake in his account.
Now, what conclusion does Mr.. Lestibudois dra
from the accounts entered at the custom-house
this operation! He thence learns that France BIZ
exported 100000 francs, and imported $4,000
whence the honorable deputy concludes that she h;
SPENT dissipated her previous savings, that she
impoverishing herself and that she has squandere
foreign nation $4,000 francs of her capital.
80 Some time after this transaction, Mr.. T di
patched another vessel again freighted with natio
al produce to the amount of 100000 francs. b.
the vessel foundered on leaving the port, and M
r had only to inscribe on his books two lit
items thus worded
I" Sundres due to Y. 200, 900 francs. for purcha
of divers articles dispatched by vessel N.
Profit and loss due to sundries, 200 900 fran
for final and total loss of cargo.
g In the meantime the custOmhouse inscribed 20G
900 francs upon its list of expectations, and the
can OF course be nothing to balance this entry
list of importatons, it hence follows, that Mr. Les
budois and the Chamber must see in this wreck
clear profit to France, of 100000 francs.
awe may draw, however, yet another concluso
viz: that according to the balance of trade theor
France has an exceedingly simple manner OF CO
stantly doubling her capital. 1t is only necessar
to accomplish this, that she should, after entering
the customhouse, her articles for expectation, eau
them to be thrown into the By this course, h
ital importatons will be nothing, and our gain W
he all that the has swallowed