The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1873-09-07
Imports ana Exports-The GOLD Pro.
mtum-Compiication OF Our Finan-
cial Condition.

mium-Compiicati or Our Finan-
cial Condition.
On no subject is there more contrariety of
opinions than on that of tho financial condi-
ton and prospect of the country The OPP
timists, who take rose-colored view of every
thing, and the pessimists who look gloomily
at both the present and future, are equally
dogmatic. The complications of the subject
and difficulty of understanding them tend
rather to make people more positive In this,
as in other cases, the greater the ignorance
the more dogmatism there is Let us en-
deavor to take rational and unprecedented
view of this important matter. In doing SO
we think we shall discover that the financial
and commercial situation and prospect of the
country are neither so bright as some imagine
nor SO gloomy as others would make us believe.
In many respects our condition is abnormal,
and involves, apparently, contradictions OF an
economical and financial character While,
however, our national life and growth and the
circumstances we are placed in by the
war, the debt and the want of skill in man.
aging the finances are different from what had
ever been seen before-that have, in fact, no
exact parallel in the history of nations-the
same laws of political economy govern here
a. elsewhere and now as in the past. If we
cannot get all the light wanted from analogy
with the circumstances of other nations we
may learn from facts, from the application of
general principles and from the exercise of
common sense.
First then, let us consider our imports and
exports, for by these we get an idea of the
prosperity of the country and of the balance
of trade in favor of or against u.s. Taking the
period from the LIST of January to the present
time-eight months within few days-and
making comparison of the imports and ex-
ports with those of the corresponding period
in the two preceding years, we find our
condition to be improving, and that rela-
lively we are importing less and
exporting more. The figures are:-Imports
in 1873, 1896, 500, 1856; in 1872, $3.50, OF, $40;
in 1871, $243, 063,87 Thus while the i'm
ports of the present year amount to little
more than twenty-three millions over those of
1871, they are nearly twenty-three millions
less than those of last year. The exports
were:-In 1873, $179, 527, 581; in 1872
$13s, 5S4, 489; in 1871, s145, 245, 5S1. 1t APP
pears, then, that, while our imports for this
year we're less by twenty-three millions than
those of last year, the exports amounted to
forty-one millions more, making difference
of trade more favorable to the United States to
the amount of sixty-three millions. We refer
here only to the export Of produce, and not to
specie. How the balance will stand at the
end of the year, four months hence, we cannot
say, but as the crops ore generally good, and
there is likely to be considerable demand
abroad for our breadstuffs, particularly from
France and, perhaps, from England as we'll,
the prospect is that the balance sheet will look
fully as favorable at the end of the year as at
present 1t is to the cotton crop especially
that we look for paying our indebtedness
abroad, and from all accounts the money value
of that is likely to be greater rather than less
than in the preceding year or years. So far,
then, everything looks well.
Now, as to the specie movement we find that
the export since the LIST of January last
amounted to s3S, 3O4, 1885, while for the COR
responding period of 1872 it was $685. 173, 1856,
and for 1871, $50, 1877, 1868. Nearly eighteen
millions less of specie was exported this year
than last. The relatively diminished impor-
tations and increased expectations will account
for that in part Here is another healthy sign
of our financial and commercial condition.
The total exports of produce and specie since
the year commenced amount to $217, 832, 567
The imports, as we have shown, were
s266, 592, 1856. There is still balance
of s4S, 759,6l9 against us. But the
balance against us for the like period
last year, Notwithstanding we exported
over ffty-six millions of SPECIE amounted to
1914, 312, 1885, But, it will be asked, how are
these balances paid? That of the present year
is little more than half that of the last year,
and so far is gratifying, yet it is still a large
balance. 1t is paid by sending national and
other securities abroad. better way to
state the case would be-, perhaps
to say that our national securities and
railroad bonds and other such good pay
ing things are bought up in Europe and
great deal of the proceeds is sent over in the
form of merchandise. The enormous manu-
featured products of Europe press everywhere
for q market, and no better one is found than
in the United States. Foreigners are willing
enough to take our bonds in payment. Of
course the transaction is conducted indirectly;
that is, our merchants do not pay directly in
bonds, but in the end it amounts to the same
thing The bonds pay the balance of trade.
Well, it may be asked, is there no limit to
this? Can we go on from year to year paying
our debts in that way? Is it possible that the
balance of trade will always be against us ?
that we can go on paying it in securities and
thus augment our indebtedness Gi Hbitum? No
doubt it is an inconvenience to be a debtor
nation and would be far better to be a cred
itor one-such for example, as France and