The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1853-09-19

China beyond the power Of many ages and the L.;
the Master Cutters warning viii not be lost for the
yerv trade and the very existence Of Sheffield may
iepend on the observance of faith with the most re-
mote. the most ignorant, and even the most barba-
Adverse Exchanges I'm Europe-Hish Rates
OF Interest In England.
from the London Economist, Sept ST.
The value of our exports in 1852 reached the nm
exanpled amount of f7S 900 O00 In 1912 they were
only EAT 900 000 and in 1882 they were f36 900 0O0
doubled. In the first six months Of the present year
our exports are nearly fl0 100000 in advance OF
1862, and 1t is therefore very moderate caculatlon
to that the exports Tor isSs o WI nn reacn a.
imports have also been large, but 1t can scarcely
be said in the same proportion taking commodities
only and leaving bullion out OF the calculation the
stocks of most articles being conm ceraDly reduced
So far as commerce Is concerned, It'll difficult there
FORE at first sight, in the face OF these facts to sup
pose that the balance OF trade is against u.s. so as to
lead to the unavorable state OF foreign exchanges
which now exist. 1t is true there has been large
importation of foreign grain; but on the other hand
there has been of late very extensive export both
Of wheat and -four, and especially to France mnch
80 that many OF the direct steam vessels have re-
Gently been entirely laden Herewith There is,
therefore, apparently nothing connected with the
corn trade to account for the present state the ex
changes.
merce there is consideration which at this partc.
ular moment may materially affect the exchanges,
although there may not in the long run be balance
against us. 1t is obvious that the exchanges must
be affected only by the actual amount Of payments to
be made at the time, in whatever way those pay
ments arise, and not by the value OF exports and inn
ports except 30 far as it affects the amount OF pay
ments to be made Remittances to France for the
9TH ctr fha
Of railroad calls, have as much an effect on the ex-
changes as for the payment of balance Of imports.
Remittances to England during periods Of CONT
mental discredit for investment in funds have as
much the effect Of making the exchange favorable to
us for the time being as If RENTED for balance Of
British goods exported. Whatever in fact, affects
the amount to be transmitted from one country to
another whether representing the payment for pro-
duce, or capital to be loaned or invested equally
affects the exchanges at the'me. 1t is the state of
the mutual payments to be made or received, and
not the state of the exports and imports except as
they effect the former that determines the state OF
In connection with this consideration there is fact
peculiar to the trade Of England which it is allim
p0rtant to bear in mind, and which may be ofsome
aid to us at the present moment in accounting for the
adverse state OF our foreign exchanges. 1t is this.
By the ordinary course of trade England gives credit
to all the world and takes none on the contrary, in
place OF taking credit upon the produce imported,
Che capital Of England is employed frequently, not
only in rearing the produce, but almost always In
keeping it, even on foreign account till required for
consumption. This is an interesting and important
fact in connection with our trade and, as we shall
show, may exercise at the moment least expected
remarkable influence upon the exchanges. What
are the facts? First, take our exports. Take the
markets of our entire colonies; take the markets Of
India, Of the UA1eed States, Of South Ameri-
ca-in al, q heightened credit is given upon our
exports. IN many Of these markets the goods
necessary for Their supply are held on consign-
ment and with British capital; and even when sold
long credit is gwen and the proceeds not finally re-
mtted to England till the expiration Of that credit.
Take, as an example, transaction in Brazil or in
India. A cargo Of Manchester goods is consigned
to Rio de Janeiro. The agent receiving it supplies
the market from his store, as the goods required.
II may be Elk, it may be. and more frequently is,
twelve months, before closed account Of sales can
be furnished. But the goods are sold at credit of
tosr, six or nine months, and it may therefore be
are all in hand and ready to remit. OF course re-
mtances on account are made at earlier periods for
part, but twelve to eighteen months would be a
fair average. Well, the funds are in hand, and if
bills are abundant, and can be had on good terms,
the rest of the operation is quick enough but, it
more frequently happens, the funds have to be in.
vested IN cargo OF coffee OF other produce. This
done, the next question is where is the best market?
The vessel sails from Rio with instructions to call
at Cowes for orders. The owner in Manchester,
upon inquiry finds that his cargo will be best dis
posed Of in Hamburg The vessel is ordered on, the
coffee sold within reasonable time, and finally the
funds RENTED to Manchester in bills drawn, per-
haps, upon some Yorkshire firm for German woods,
shipped by the same steam vessel that brings the re-
mttance During the whole OF this time the capital
which had been expended in cotton, In labor, in
tistc style, IN dyeing, &c. some months before the
shipment was actually made from England, has been
employed abroad virtually in conducting the COM
merce OF foreign countries. Less or more the whole
of foreign export trade is Of this characters that
with the Continent least SO. Nor is this fact in any
way altered because manufacturers who make these
consignments themselves receive advances upon
nent If they do so it is always from British mer-
chants and in any case it is British capital that is
throughout represented in the transaction.
Let u.s. then, examine the different character Of
other country. We may fairly assert that none but
British capital is engaged in British trade. The pro-
duce Of the United States of India, of our colonies
Of South America, required for our consumption, is
either purchased on the spot with British capital,
II is consigned to this country for sale required
But in the latter CASE though held account of the
foreign producer, it is Invariably held with British
capital cotton grower in Georgia, sugar planter
in Cuba, the owner of ocks in Australia, the pro-
ducers Of indigo in Bengal the coffee growers in
Ceyon, may Sonsgn, and often do consgn, their re-
spectve productions to this market for sale, either
direct to our merchants or through their agents
abroad, but in all the bill Of lading is
panied by drafts to nearly the whole value of the
consignment, and almost from the day the goods
ter our warehouses or very shortly after, our mer
chants are in cash advance upon them and continue
to be SO until they are finally sold and paid for.
The practical effect, therefore, is, as we have al
ready said that this country gives long credits to all
the world as regards our exports and takes no credit
as regards imports. 1t is hence obvious that the
relative amount OF our exports and imports at any
particular moment may not represent the exact re-
latve amount Of the payments to be made and re-
ceiyed; and this chiefly at times when our trade is
undergoing any important change. Thus, during
period when it is rapidly expanding, even though
our exports may still considerably exceed our i'm
ports, yet as the payment for the former is as we
L~x, 1occ~ e.
payment for the latter is made by us at once, and
as it is the amount Of payments alone that de-
termnes the state Of the exchanges and not Of ex-
our trade, that the payments to be made by England
greatly exceed those to be received by England, and
that the exchanges may be adverse for time,
while the immediate relation Of exports and i'm.
portion as the increase Of our exports is rapid and