National Republican. (Washington City (D.C.)) 1872-1888, 1874-04-09
FOREIGN INDEBTEDNESS,
Its AMOUNT, OF WHAT 1T CONSISTS,
AND HOW CONTRACTED.


EMIGRATION AND IMMIGRATION - Ex-
PEEsEs OF AMERICANS ABROAD.
DIR. Edward Young, chief Of the Bureau Of Sta
tistics, has prepared an article from approximate
and generally reliable data, giving the following
view Of our present foreign indebtedness, which
will be found Of paramount interest at the pres
emit Iuloture. The Doctor says that the above
question has been repeatedly asked during the
past four or i've years, the replies to which have
been numerous and the results various The
amount Of our foreign debt, its gradual increase,
and the annual burden Of the interest charge con-
stituts an economic subject Of grave Importance
ths determination Of which is closely connected
with our fiscal policy. The following estimate,
which was prepared by the house Of Jay Cooke
Co., and which received the approval of some OF
ths largest purchasers Of national securities on
foreign account In New York, appeared in the
last report (that Of 1891 Of Hon. d. A. Wells,
special commissioner Of the revenue:
State rafi i municipal, and other.
securities 465, 10000
The opinions held by those who have given the
subject careful consideration vary greatly as to
the amount Of the foreign debt Other bankers
in New York, whose business makes it necessary
for them to follow the state Of the foreign ex-
changes as closely as possible, and whose oppor-
tunities for making correct estimates on the sub
above alluded to, expressed to the writer their be-
lief that the aggregate amount Of our foreign IN
debtedness at the period indicated was about
$500 900 900 in United States bonds and $780, oOo.
600 in State, municipal, railway and other securi-
ties-making q total Of ts6o, 900, COO.
There is, in this country at least, tendency In
the direction Of e1aggeration of statement, which
is unfortunately, not confined to misses just from
school: but extends to men of mature years. Of
enlarged experience and decided ability. The
belief expressed some years ago by Secretary Of
Treasury that the value Of goods struggled into
the United States was equal to twenty per cent.
OF the whole imports and the statement made In
the report Of commission THAT one fourth Of the
revenues Of the United States annually lost in
the collection" are Illustrations Of this tendency
Nor are bankers and merchants entirely exempt
from inadTertent eIaggerGuon. Although in the
habitual use OF figures and familiar IN detail with
the facts in relation to the subject under consider
alton they are not in general accustomed to COM
hine in rigid statistical form the entire mass Of
facts and therefore fail to arrive at correct con-
illusions
I. BALANCE OF TRADE.
1t is necessary, in the outset, to consider the |
elements that enter into this computation. In |
the first place, we must ascertain the adverse |
balance Of trade upon the actual specie values Of
imports and exports. As in the fiscal year 1862
the value OF exports exceeds that of the imports
the period embraced in this investigation begins
on the lst Of July, 1862. |
IMPORTS.
The declared values of the imports for the |
eleven and half years ended December 81, 1873 |
as made up by the Bureau of Statistics, show |
aggregate importatons Of merchandise amount |
ing to a, SOS, 39l, $751; specie and bullion S2o4
ol9, l27; making total Of Is, o99, 4lo,959.
A reduction from the aggregate value of mer-
chandise imported should be made Of s37, o54 697,
being the difference in the value Of goods in bond,
oF TnIp
1853 and s62 O6I sS4 on the S1st Of December 1873
The total imports in the above table should,
therefore be reduced to a ISL, ,lS5 for mer-
chandss alone, and TO E5,Ool, 75o, 2o2, including
specie and bullion.
EXPORTS.
The aggregate expectations during the same
period were of merchandise, g ST. 2Ol, 4l4 specie
and bullion $685. sS5 1874 being total Of e4,7O3,-
1855 sos. From these figures it will be seen that in
the period under review the net imports amounted
to O., s57, 1871 l35, while the exports OF domestic
and foreign productions were valued at % sl7 2Ol
IA, showing adverse balance Of 81 900 535 T2l
which by the export OF specie and bullion to the
amount of Sssl e46 O67 in excess Of the imports is
reduced to s85S, 5S9,s54. To Q superficial observer,
therefore, this sum would appear to be the aggre-
gate Of our foreign debt.
II. SMUGGLING AND INTERPRETATION.
But, although the trade statement is chief, It is
not the only element Of computation. We must,
in the second place, estimate the differentiation
of merchandise imported, as we'll as the value of
goods brought into this country without payment
of duty. The estimates usually made as to the
total amount Of these two items probably differ
moro widely from the actual faetE than in any
other subject of conjecture.
From o careful exanin tion Of the subject dur
ing the past four years consider an addition Of
three per cent. to the total value of the imports
for differentiation and smuggling as ample
allowance, and oil who have given the subject
much attention will concur in this estimate. 1t
must be borne in mind that neither bulky nor free
goods are struggled, and that merchandise pay
ing specific duties will not be underValued. What
kind of goods will probably be struggled?
Precious stones, jewelry, watches, silks, fine
laces etc. An examination Of the official returns
of the port Of New York, published by the bureau
OF statistics will show that the total value OF free
and dutlable merchandise which enters into con-
sumption during the fiscal year ended juno 30,
1873, in round numbers ass oooo 900, three per
cent. on which is S1S,l4O,oOo. The following were
the imports Of goods most easily struggled:
JeTei I!; and ali manufactures of gold ''0'
watches and watch movements and ma
terials 3039.6l2 |
SILK dress grood 1o,S533sO
Total s28,lol, no
Which, with fine laces and embroideries, probably
reached s2SOOO,cOo. The 900 above esti-
mated Is eQual 10 per cent. Oh Ine Value OIL |
these articles which paid duty. Does any New
York merchant believe that the undervaluatiOns
and smuggling of such articles as the above
named amount to sl3, 200, 900 annually Perhaps
of precious stones, jeWelry, watches, laces and
embroideries It may reach $1,000 900; but does it
amount to 5000 900 on silk goods? nso, who
are the smugglers? Not Messrs. A. T. Stewart
& Co., H. B. Clahin Co., Arnold, Constable
Co., nor q score Of others nearly as well known
among the silk importing houses Of New York as
merchants OF integrity. 1t is evident, therefore,
that addition Of three per cent. to the value Of
imported merchandise Is sufficient to cover the
eVasiOns Of the revenue, such addition, amount
ing in the period under review to sl46, s5l, 7a.
III. FREIGHTs.
The values OF the imports Of merchandise, as
presented IN the first table, being those at the
ports of shipment 1t will be proper to add thereto
the amount Of fretghts to the several ports Of the
United States. As part is brought in American
vessels and the freight so earned is an addition
TO the wealth OF the country, It ia only necessary
20 consider as another element in the computation
the amount Of freight received by foreign ship
owners. As inward frsights on goods vary from
hundred per cent. on salt and some other
bulky articles to two or three per cent. on dress
goods and loss than one half per cent on specie,
IT is difficult to estimate the ad valorem rate. |
The average on merchandise alone ia not much
less than eight per cent? but, nearly all the | ,
jeWelry, watches, &c, are brought by foreign {
steamships, which disburse q considerable amount
for fuel and shpstores It is believed that six per
cert. on the total value Ct imports is on estimate
of approximate accuracy. AS the imports in for
eign vessels amounted 10 1851 374, $50, the ele-
ment Of foreign freight will, therefore, cause an
increment OF s21l, Ss2,456.
The exports Of domestic products, as given in
the trade reports, are the currency values at tie
several ports Of shipment in the United States.
To make these conform to q uniform standard, |
the values have been reduced to gold in the tables
presented in G preceding column. The total
amount exported in American vessels during the
period under consideration was Of the value of
o., 100000 in gold, the freight which, esti-
mated at per cent, amounted to es7, 900 900,
which sum must be deducted from the aggregate
of freights carried by foreign vessels. l.
". INTEREST.
The last item 70 be added to our estimate is the
interest which has become due upon the debt
while IL has been accruing. To obtain this with
approximate accuracy is the most difncult part Of
fri al ofa