National Republican. (Washington City (D.C.)) 1872-1888, 1875-08-04

omists ger orally have been accustomed to
describe as an adverse balance of trade"
to the amount of $S3. 715,01 whereas, the
year before there was the trihing balance
p Se,02T, 079 Gin our favor," making
fdtal change of $S5, 742, Oss, which, accord
lag 70 the views just referred to- would be
re-srded as change to our disadvantage.
But " those views be Professionally accepted
IL win be necessary to take int the account
the amounts Of foreign merchandise with
drawn from warehouse, during the two
years in question, over and above the
amounts placed in warehouse during the
game years. An examination Of the figures
in this head will show that the imports of
1874 were supplemented by merchandise
to thevalue of 81, sS4 915. drawn out of
the stock previously in warehouse, whereas
the imports of 1878 were supplemented in
the same way TO the amount of only
81, 992, $40. Subtracting the difference be-
tween these two amounts ($14, S92, 073)
from the $S5. 722, coz We obtain $40. $50. o1s
as the net change to our disadvantage on
last years trade as compared with the trade
of 1874.
But we do not, for our part, adopt the
view upon which this conclusion Is based.
q view which assumes that it is always and
necessarily advantageous to nation to ex.'
port moro merchandise and less specie or
bullion than it imports. Even in the case
of countries which do not produce the
precious metals this assumption may be
true or false according IS the metallic cur
rencies of such countries happen to be,
scant or redundant; but in respect to coun-
tries like our own, in which the mining OF
gold and silver forms an established and i'm
portant branch of the national industry, its
direct opposite. as far as regards i'm
ports and exports of these metals,
may be set down as a general prin-
ciple, because such countries require q
foreign market for their surplus gold
and silver, Just as they do for any other
surplus product. And where people
are using paper currency to the exclu-
sion of these metals, the home demand for
the latter must be so much the more lin
tied and the need of foreign market cor
respondingly greater, if the industries which
produce them are TO live and prosper.
To our mind the most interesting question
connected with our foreign trade at present is
| the relation of the total exports to the total
| imports, (gold and silver being Included In
| each CASE since this affords us the means
of Judging as to whether we are living, as
people, within our income, or sinking more
deeply in debt. By combining our exports
and our imports of gold and silver with our
exports and imports of merchandise, as
shove given, we obtain thu following
figures, which express the grind total of
our exports and imports for tn, two years
unuur consideration: a
-, 1874 Isl, 81,
Imports .....-........s5osss so Sss q:
|. EApoltes. -
Excess Of exports over 40. go amor 60,
Tb;s shows that both in 1874 and In
1915 we sent abroad considerably more
than we imported In neither ease, how
ever, would the surplus be equal to the
amount Of interest payable on our foreign
debts; whence ii follows, so far as we can
judge from available data, that we are not
quite living within our means, but
are, to some extent increasing the amount
Of orr foreign Indebtedness. How far this
Indebtedness is being contracted for pro-
ductive purposes, such as the opening of
mines, the construction of railways, or the
prosecution of other industries, we have no
definite means of judging. Upon this point
the statement of our foreign trade by COM
modities, which is soon to be given to the
public, may throw some incidental light
by indicating the character of our imnnrts
In comparing the total trade of 1874 with
that of 1875 the advantage, as to excess of
imports, appears to be in favor of the for
mer year, but if the warehouse account be
taken into consideration here, as it was in
dealing with the imports and exports of
merchandise sldne, the year 1875 will have
the more favorable exhibit.