The southern press. [volume] (Washington [D.C.]) 1850-1852, 1851-02-04

Ne are. by the years operations. indebted 70 The
amount Of that balance, and that therefore we
have been doing ruinous business.
have said that thought this doctrine had
| been long since exploded; and thought 30, be-
cao,e knew that every man who had ex-
amlned the subject OF exports and imports
hibIted by the custom house books, must know
that they exhibit almost uniformly, what you call
a balar &c against u.s." from the settlement Of
the country to this day, and that that fact, taken
In connection with the unparalleled prosperity OF
this country, would prove that II IL no very con
elusive evidence Of a very ruinous business.
thought so, because knew that any man who
knows any thing about the nature of trade be-
tween one country and another, and Of the nature
of trade itself, must know that il it's house
books do not, MS general rule. exhibit +" a bal
ance against IT,, il must be doing bad business
As have not, like you, official station to give
importance 10 my opinions, will give the rea
sons for them, and they may, perhaps, outweigh
even official Importance.
| As, IN exposing your errors, it Is not my prov
ince TO deceive any one, will premise that the
entries in the books of the custom houses for any
one year prove nothing, either Ia the prosperity
or Indebtedness of the country. This results from
the fact that the money value Of all the products
of human labor s constantly Neutrality-suspicious.
It were better tn say the relative value Of cotton
and wheat and silver Is constantly changing-to-
day, two bushels Of wheat are equal to one ounce
OF silver; tomorrow, it requires only one bushe
Of the grain to equal the same amount Of metal
At one time twenty pounds OF cotton are required
as the equivalent for one ounce Of silver; at an
other, five pounds of cotton will be the equivalent.
| Yet the silver always retains the same nominal
value; and whether it be the equivalent for one
bushel Of wheat, or two; OF five pounds of cotton
or twenty, it is still called dollar.
Now, sir, IL you will bear this in mind, you
xxrlII hat .hn
books might show an export of two hundred mil
lions of dollars, and an import OF only one hum
dred millions, or an export OF one hundred mil
lions andan import Of two hundred millions, and
| yet there should not remain in either case dollar
due to either party Having no idea that you will
be able TO comprehend this, will explain it to
you. Suppose that cotton should be valued at those
ports of the United States whence it is shipped at
800 per bag, and there should be shipped two
| millions OF bugs, your ustOm-house books would
show an export Of two hundred millions of dol
lars. Now suppose that there should be great
fall in the price before this cotton sold in the for
eign markets, so that it shah be worth there only
fifty dollars per bag, and that it's proceeds are
vested in foreign productions and brought to this
country. Why, you see, there would be only one
hundred millions of IMPORTS; and according to
your arithmetic applied to your notions Of trade,
we should be doing good business, and you
would come to the conclusion that foreign nations
were still indebted to us the other hundred mil
lions. Then reverse the proposition suppose cot
ton to be valued at our ports at $50 per bag, and
two millions exported, there would be hundred
millions of exports-if it should prove great
rise Of price be worth, when sold in foreign mar
kets 500 per bag, and the products vested in for
| eign products and brought to this country, there
Ayould be two hundred millions of imports, and
your arithmetic with your notions Of trade, would
set US down as ruined by an Indebtedness Of one
hundred millions Of dollars, while in fact we
should in both cases be even, and what is more,
we might in both cases have received exactly the
same amount of goods for the cotton.
Suppose again TINT two millions OF bags Of cot
tom valued at the ports Of this country at $50 per
bag, should be shipped to foreign countries in
| American bottoms and on American account and
that all ofit-ships and all-should be lost in the
ocea,,--your custom-house books would show an
export of lGO millions and because they would
show no imports al all--this great pecunary ca
lamity, your arithmetic would set down az a clear
gain OF lG0 millions, and you would proclaim i,
to the world the evidence OF the rapidity with
which we were getting rich. Truly, Mr.. Corwn
you have found the Philosophers stone in til,
custom-house books.
Suppose an individual should fit up his ow,
vessel for the purpose oftakng pleasure triy
about the world, and should take with him mil
lion OF dollars in gold which would be entered n
expor,--f after four or FIVE years he should com
back with only half Of it, to be entered as imports
you would set 1t down AZ gain to the country
and so much the greater gain il he had spen,
all.
) Whaling vessels sometimes go out t0>m thi
country suppose they take nothing with then
which appears exports. | see il recently re
ported that whaling expedition has returned
with hundred and eleven thousand barrels Of oil
besides other things; the result Of the expedition
million Of dollars. This, according to your arith
metic, il terrible for the country; for while il
shows that much Of imports, it shows no exports
at all.
Suppose thousand families should come to
this country, bringing with them hundred thou
sand dollars each in goid-you would feel that thu
: country was ruined, because there would be one
hundred millions Of imports, with no exports to
balance against it-or to use your language, there
would be "a balance against US of a hundred
Millions" Now suppose they bring hundred
millions ofdoars Of something else that is 'valun
! bic, the country ia enriched by it just much d,
+ by the gold.
, There is one other thing which have not We
mentioned to you, and Of which | should udg,
you are wholly ignorant; and ! am almost sfrait
to tell II TO you, for fear that in spite Of all thu
wisdom to the contrary, you may come TO thu
conclusion that the country is wholly and ire
trivaby ruined-that its redemption is now be
yond the reach Of your financial abilities. How.
ever, must risk it, The imports INTO this coun-
try from 1897 to this time, have exceeded the ex-
ports by at least thousand millions Of dollars
and according to your arithmetic and your idea,
OF trade, we ought to be now that niue. poorer
than we were then.
have given you, sir, some rather extreme in
stances, but you will very readily perceive from
them that our custom house books must, as gen
eral rule, show what you call Ga balance agains
us" as long as we do profitable trade. For ex
ample, merchant ships cotton from New Yorl
to Liverpool--it is entered at New York as ex
ports at its New York value, he sells it in Liver
pool at profit Of twenty per cent. upon the New
York value, and vests the proceeds in the produc
tons of that country here is an excess Of twent,
per cent. ofimports over the exports, which yo,
would call ga balance against us"-it is in trutl
but the regular result Of trade. do not wish yo,
to understand that hold that merchants may no
sometimes import more than is good for them
the country, and more than they able to pa,
for. shall probably in the future give you som,
correct ideas on this and other subjects. ] hnv,
addressed you this merely beginning. Thi,
position which have attacked is not the most er
roneous, but is perhaps the least mischievous o
several that you have assumed in your report, ant
to which il is my purpose to direct my attention
md that IF thA puhltc ir I