The workingman's advocate. [volume] (Chicago [Ill.]) 1864-1877, 1872-09-07
What we Owe to Europe.

The most noticeable feature Of the
monthly report from the Bureau of Sta
tistics, published in The Globe few DAYS
ago, is the large increase in the balance Of
trade against the United States. Last
year We exported almost as much during
the month Of March as we imported, and,
counting in the expectation of foreign
| goods, the balance in our favor was a trihe
over four million and half. This year,
the balance against US, including re-ex-
ports, was over seven millions. The same
ratio Of increase marks the two periods Of
nine months. From July | to March 81,
| 1871, the balance Of trade in our favor was
over ten millions. This year the balance
is 800, 900, 900 against US, instead Of 80
OOO, OOO OF more for us. This gives only a
slight idea Of the rapid manner in which
the United States is plling up foreign in
dcbtedness There are a good many other
ways I'm which this foreign Indebtedness is
increasing 1t must be borne III mind that
a great proportion Of the capital employed
in pushing railroad and other great enter
prlses III this country comes from Europe,
the most important of all investments be-
ing the purchase Of city and State bonds
1t is said that over one hundred millions
Of the bonds Of NelC York are held in the
Old World and it is probable that the ag-
gregate Indebtedness Of the United States
to the capitalists Of Europe exceeds the en-
tre debt " the government. This may
seem at the first thought to be an exag-
Grated statement, but we believe that if
the Bureau of Statistics would collect the
facts bearing upon the subject, the public
would be surprised at the strong grip the
money leaders Of Europe have upon the
United States. Foreign capital seeks in
vestment here, because our rate Of interest
IS almost double the average rate abroad,
and because there is here an almost indie
Unable limit for enterprise. With the
progress of enterprise of our country de
velOpment begets development, but in order
to a full realization of fond anticipation,
the impossibIllty Of obtaining funds at
low rate at home, coupled with the com
parative unsoundness of the currency,
prompts the borrowing Of money abroad.
OF course there must be an end of this
thing some time, otherwise England and
Germany may olri, the United States by
virtue Of the power of first-class mort
gage.
During the last ten years, or since the
commencement of the war, the financial
policy Of the government has tended to in
duce the practices which created the enor-
nous foreign indebtedness, so far as it
relates to trade. 1t will be remembered
that the war was hailed by the friends Of
high duties and taxes on imported goods
with intense satisfaction, as making those
duties and taxes apparently necessary for
many years. In 1861 the imports and ex-
ports of the United States were $3.50, 569,-
412, and two-thirds Of this was in Ameri-
can vessels. In 1870, the total trade was
1891, 857, 269, and the value of freight in
American vessels was little over one
third. Protection may be very good
thing, but, when it protects in the wrong
direction, we are disposed to ask the
question Does protection protect
As We have before demonstrated in The
Globe, foreigners are not only supplying US
with merchandise fOated almost exclusive
ly in foreign vessels, but the gold of the
great European financial centers Is grad
ually absorbing all the great enterprises
in the country.