Perrysburg journal. (Perrysburg, Wood Co., O. [Ohio]) 186?-1965, 1871-12-22
The Balance Of Trade Humhug.

The Balance of Trade theory has always bsen
which to excite popular prejudice, and, under
its influence they hope to revel in plundsr. We
publish below a speech on that question, delir-
ed by DANIEL WEBSTER in the U. s. Sc nate. II
will be seen that he thoroughly exposes that
dishonest sophistry and designates it a "hum.
bug" Indeed it is a humbug of the deepest
dye, for so far from high protective tariff pre-
venting iniportationS, as its advocates assume,
it is notorious fact that such impOrtations have
been uniformly in excess of those periods when
moderat, tariff prevailed. Mr. WsBsrRR's re
marks are as follows
"HR CEAIRNAN; will now proceed to say a
lew words uron topic, but for the introduction
ofwlieh into this debate, l should not have Civ
en- the o)mnitt.e on this occasion the trouble oi
hearing me. SVme days ago. believe It was
when we were settling the controversy between
tho oil msrci Rnts aud tho tallow chambers, the
balance of trade made its appearance in debate
and l must confess, sir, that I spoke Of it, OF
rather spoke to il, somewhat freely and irrever .
entity. l belVe used tie hard names which
have been imputed to me, and did it simply
for the purpose Of laying the spectre, and driv-
| ing it back to its tomb. Certainly, sir, when
called the old notion on this subject nonsense. |
did not suppose that shsuld offend any one, M =
less the dead should happen to hear me. All the
| living generation, | took 1t for granted, would
think the term very properly applied. In ills,
however, / was mistaken. The dead and tue
living rise up together to call me to account and
| must defend myself AS we'll as am able.
" Let us inquire then, sir. what il meant by
| an unfavora6ie balance Of trade, and what the
! argument is, drawn from that source. By an
| unfavOrabe balance Uf trade, | understand, is
| meant that state OF things in. which importation
exceeds eIporintion. To apply il to our own
| case, if the value Of goods imported exceed the
| value Of those exported, then the balance OF
trade Ia said to be against us, inasmuch as wC
have run in debt TO the amount Of this difference
| Therefore ii is said, that IL nation cOntinu,
long in commerce hike this, it must be rendered
| absolutely bankrupt. Ii is in the condition OF a
| man that buys more than ne sells and how car
| such traliic be maintained without run2 Now
sir, the whole falacy Of this argument consist:
in supp0sing, that, Whenever the value Of i'm
| ports exceeds that Of exports, debt is necessa
| rily created t. the extent otihe difference, where
as, ordinarily, the import is no more than the
| result OF the export, augmented in value by th
labor Of transportation. The excess of import,
over exports, in truth, usually shows the gains
not the losses, Of trade; or, in country that no
| only buys and sells Ronds, but employs ships il
| carrying goods also, it shows the profits Of com
msrce, and the earnings of navigation. Moth
ing is more certain than that, in the usual cours
OF things, aud taking series Of years together
the value Of our imports Is the aggregate OF Ou
exports and our freighis. II the value o
commodities imported in given instance die
| not exceed the value of the outward cargo, will
| which they were purchased, then it would b'
clear to every mans common sense, that th
voyage had not been profitable. IL such com
| modies fell far shurt in value Of the cost OF th
outward cargo, then the voyage would be
very losing one and yet It would present ex
actly that state 0f things, which according Il
the notion Of balance of trade, can alone indi
cate a prosperous commerce. On the Othe
hand, II the return cargo were found TO be WORT
much more than the outward Cargo, while tn
merchant, having paid for tho gOnds exported
and all the eIpe nses Of the vnyage, finds hand
some sdm yet In his hands, which he calls prol
Its, the balance Of trade Is still against him, nd
whatever hO may think of It, he is in very ba,
way. Although ono individual or all individ
uals gain, the nation losses while all its citi
gems grows poor. THIS Is tbe doctrine OF th
balance OF trade.
"AlOw me, sir, 10 give an instance tending Il
show how unaccountlbly individuals deceiV
themselves, aud imagine themselves to be some
what rapidly mending their condition, Will
they ought Ia be persuaded that, by that infalli
BILE standard, ths balance Of trade, they are n
> the high road To run, Some years ago, in bet
ter tunes than the present, a ship left one of tn
towns Of New England with 10 900 specie dol
lars. She proceeded 10 Mocha, on the RED Sea
and there laid out these dollars in coffee, drugs
| spices, and other articles procured in that mar
. ket. With this new cargo she proceeded L
Europe twO-lhirdS Of 1t was sold in HGllanC
for Si3O, 900, which the ship brought back an6
placed in the same bank from the vaults ofWhicl
, She had taksn her original ouBt.
"The other thirl was sent t0 the ports Of th'
Mediterranean, and produced return Of s2J 0Ot
> in specie. aud $4,000 in Italian merchandise
, These sums together make $4,000 impaired
which is 800, 900 more Than was exported, anC
is therefore proof Of an unfaVOrabls balance q
trade. to that amount. in this adventure. We
should lind no difficulty, SIR, in paying of 0u
balenees, II this were the nature OF them ALL
Speech " SENATE, Apra, 1924"