Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1857-10-02

THE BALANCE OF TRADE THEORY-WUAT
HAS CAUSED THE LATE FINANCIAL CRASH,
The Lynchburg Republican says that some of the
leading journals Of the country disposed to or
tribute the present financial embarrassment in great
part to the last few years excessive mportations of
foreign merchandise and our ezportation of
Specie. They say that for the last years the United
States have imported SS4 OOO 900 more merchandise
than they exported, and, for the same period of
time, the Of our expectations of specie was
about SlOO,OOO,0O0 over our importations of the
precious metals.
We have been long under the belief that this ex-
ploded balance-of-trade theory was abandoned As
entirely theoretical and visionary even by its most
1nveerate advocates, but it seems like great many
other fallacies to have sort Of periodical resurree
tiOn-when it comes forth to fatter the vanity of
some, and impose upon the credulity of others With
all due Difference TO the opinions of otberg whose
judgment in all matters are entitled to great weight
We will be permitted to express the opinion that il
is the greatesallacy in the world to suppose thai
nation is enriched, impoverished, lust in the
ratio that its exports exceeds, or, is exceeded bv
its imports. We lay it down as a safe rule as true
in its application to nations to individuals that the
merchant who never buys more than he can safely |
pay for and SELL to advantage, keeps himself
within the bounds Of prudence and wise political
economy, and is not likely to be overwhelmed in |
commercial disaster, however rude and sudden its
shock Unless, therefore, il be shown that this
country has disregarded this rule in its commercial
dealings with foreign countries, and has imported
more goods than she needed, or can safely pay for
is idle and foolish attribute the present crash
in the North and West to an excess of importaions
over expectations. It is noticeable fact that il is
not the large importing merchants of the country.
but different class Of operators, whose houses are
tumbling to pieces and bringing ruin upon the conn
Try. 1t is not the merchant who has Unmarried q
million Of foreign merchandise that has failed b
the exchange broker, the bond Spectator and the
shin plaster banking establishments Since ,bo U
foundation Of the government the excess of Arori
can importations over expectations has been tho L
aggregate sum Of nine hundred millions Of 5av,-, 4
$780, OOO00O) which, according to the balanced a
trade theorists makes just that much poorer thai,
when were IN our infancy, because the national bal
Ence sheet shows that much Of trade against lis But
what is the truth Of the case? Has the country $
really been injured in this adverse rotiog So fsr
from such beng the case 1t has advanced in popu
lation, prosperity, wealth and power with almost
uulll from lew ulStTactP ed
MES, it has grown to be of the first powers Of
the world Away, then with this exploded protec- d
Zionist dogma Of " balance -of-trade." b.
The erroneous impressions existing npon this sub h
ject, arise, in most part, from imputng to the W
government a relation foreign commerce which il W
does not hold Foreign commerce is just as much fa
au individual transaction, the commerce between re
any two cities Of the American Union and the sole IN
agency Of government consists in collecting its tariff d.
iulies and giving protection to our shipping While ty
may be very true therefore, in political economy id
hat an individual who buys, for series Of years. nj
more than he sells, may become poorer, the princ gr
pie is entirely inapplcable governments for the ha
cry obvious reason among Others that the foreign
)mmerce of nation and especially of our coun- no
ry, constitutes but fractional part of its trade ma
nd wealth We might blot commerce from the tor
oean and still be rich and prosperous people.
nina furnishes notable example. Commerce III,
Only one Of the many sources Of national pros be,