New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1876-09-10
THE BALANCE OF TRADE.

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such outrages.
THE BALANCE OF TRADE.
One class of political economists looks
to the traditional balance of trade as thu
only satisfactory evidence of successful
commerce. If you export more than yor
import your business must flourish; il
you import more than you export it mus
necessarily prove disastrous. Such is the
logic presented. But the true balance Of
trade can never be made up from mere
customhouse returns. The smugglers
unaudited account, the tricky manipula-
ton of invoices, and the management oil
those who sit at the receipt of customs,
are all items affecting the ultimate result.
Then again, what we send abroad may as
sumo new values in the foreign markets
where they are disposed of for shippers
account, and the bottoms on which the
carrying trade is conducted must be taken
into consideration before the balance
sheet can be accura tely adjusted.
For great many years the balance Of
trade was against US; now. however, it is
in our favor, and the prosperity which
that significant fact implies is supposed to
be approaching as fast as time and tide
can bring it. But while our exports have
largely increased, as compared with our
imports, our total foreign trade has not
yet recovered from the effects of the panic
of 1873, though it is to be hoped that as
soon as our industries are again thorough
ly vitalized We will take measures for the
reconstruction Of commercial marine,
so that, in the enlargement of our foreign
commerce, a portion, at least, of the car
rying trade will be ours.
Just previous to the war our ships were
equal in tonnage and superior in speed to
those Of Great Britain. They were, how
ever, for the most part, wooden vessels,
and were largely swept from the ocean by
Confederate cruisers and other adverse
agencies during the continuance of our
domestic conflict Meanwhile, the trident
of old Neptune was grasped with renewed
vigor by the ambitious hand of Britannia;
but in her new march over the mountain
waves she abandoned her wooden walls
aud took advantage Of the fact that iron
can be made to swim.
In the changed feature of naval archi-
lecture, which the use of iron instead of
wood implies, We were in no condition to
compete with the Tubal Gains of the
British isles, and in the imitation of values
consequent on the imitation of our cur
rency, and the high estimate our artisans
placed on their skill and services, our
competitive ability in the line at issue
was still further diminished. Hence,
ever since the war our carrying trade has
been conducted almost entirely on foreign
bottoms, chiefly of British build, but not
SO exclusively of British ownership. Many
of these vessels belonged to German
owners, for German wealth and ambition
were DESTROYS of securing a mercantile as
well as war marine before they could be
conveniently furnished by German build
erS.
But the panic which occurred three
years ago so diminished the carrying and
passenger trade across the Atlantic as to
leave quite fleet Of British and German
steamers utterly without employment At
the commencement of the panic about $50
estimated to be worth $780,
coo, 900, were employed in the commerce
between the United States and Europe,
and of these all but about half dozen
were owned abroad. To-day about one
third of this grand maritime feet has
been withdrawn, through the diminished
in freight and passengers, and
many of the number lie idle at foreign
Meanwhile, important i'm
have been made in the con-
of both the bulls and machinery
Of iron ships, and by these their safety is
increased, while at the same time the
quantity of fuel consumed is materially
diminished.
While these changes have been going
on, the price Of coal, and, consequently,
the price of iron, has rapidly advanced
in the British isles. In this country the
case is different Our unlimited re-
sources in the way of coal, and all the
other raw material employed in the
of iron, give US advantages
which must ultimately make us as pre-
eminent in the construction of iron ships
As we once were in the building of wooden
ones. As soon as our builders are prop
erly prepared for the prosecution of such
work, especially if Tennessee and Ala
bama iron are employed for the purpose,
and their yards are placed at New Or
eans or Mobile, they will be able to fur
aish iron ships at little more than half
he price such vessels now cost upon the
Clyde.
All circumstances considered, it is high
line that this matter was taken seriously
n