New-York tribune., 1874-05-30
LETTERS FROM THE PEOPLE.
SPECIE PAYMENTS AND THE BALANCE OF
TRADE.


TRADE.
THE FOREIGN EXCHANGES CAN BIZ LEFT TO REGU-
LATE THEMSELVES NECESSITY OF REMOVING
TIE UNNATURAL SURPLUS OF PAPER.
70 the Editor OF The Trf6nne
SIR: There seems to be general feeling
that we caunot reach specie payments until the oa'ace
NJ trade turns I'm our While this Is indeed true
!. n misleading statement People notice the now Oh
cold and silver this country to Europe anu WIN
ont considering the Of the movement adopt the
conclusion that no attempt to get to specie
practicable as long as the drain continues thinX tne
true statement be made by reversing the PROPOSE
tion-putting cause and effect in their proper piaces'
and saving: "The balance Of trade Will not turn' tne
outgo OF specie cannot be stopped uhti VIC maho Nv
tempts to reach specie payments.'
When the imports and exports OF any country are
eouiyaent in specie value they are both paid Tor oy
hills OF exchange In such state the rate OF exchange
woud be about par since neither expense nor sk hecu
be incurred by actual shipment Of gold There tnen
M balance OF trade and there no other CONSIDER
a,ions that would appear TO be the natural sa'e W
which there must always be tendency IN al coun'i.
When country Imports more than IL exports 'no Va"
ance OF trade said to be against IT, Ihis oasnce o"
not continue but must sooner or later DC onset w "
ot exports Neither can the balance Of trade re.
main in favor OF country Tue former would take ai
the gold from the country the latter would dram .ne
whole world. How then shall we account Ior the
uctorious fact that the balance Of trade con-
tlnue, 10 be against the United Statesf very
easily We produce gold and. having no use ior w. we
send to those countries where u Is sun To-
OF course we use for ornaments ana soine IVr
duties but the amount is small ana the latter -
used and over again, AS the G0yefHneu. uannv'
nay its without selling the metal nrst Tor currcnc
We export gold whenever 1t Is the cheapest thng we
have exactly as we export our other proaHc's W. vs9
woys send away the surplus OF any article we must
EXPORT whatever product do not want ana THIS u Inc
reason why the balance Of trade Is against us anu o
,y1,,i uat
steps toward using gold rs money II was long ago us
covered that bad currency would arlUe ousaerny on ~
small change cannot circulate together Tor tue
that every will pay his debls IN te les. vauane
knd of money Debased metal and rredeemabie paper
have always caused the balance Of trade 10 turn
any country using them use iVr xoiu a. pui ui nav
sirOyed. so mucn Oh lS 'aiuo Is suc9io''N 40 wa" ''
'na % ev ore " having the same financial discussion
again which they in tho time OF tho Bullion Com
mtee In England, and seem to have Just rcaehcu ai,a
part where the unfavorabe state Oh the n
People thought there was real scarcity o vi
but Committee pointed out the act tha' @ .t o, Was ,
day Indeed. the natural laws Of commerce give 10
every country IN spite OF any seeming o bn
where a substitute Is provided IaKe away tuo en 1u
sttute and the whole world must coripute %
and the balance OF trade VIII % never DC ia'Ur ,no
able except ~ time OF panic r, rms wben g,gS for %
short period. gold was owing into New n0rk anu G
superficial observers SAID NOW we s an seems s. n be
consdered barrier which 1t only necessary 10 pass
once III this true. II would vltiate an nnhhol,i
tudy by proving that the value OF paper money Is NOT
in proporon to its quantity. There was no less paPet
no nearer specie payments. The decline OF the gou
premium WAS spasmOdic, and there had 70 be reaction
ary advance which has since taken place. 49,.
in finding our way back to hard money, there Is no
Necessity for borrowing trouble from the unlavoraDie
,te of foreign exchange tor this will regulate liseif
All that we have do is remove the unnatural sur
nina of paper which must do to get W natural specie
payments.
Ner- York, May 2j 1874.