The New Orleans Democrat. (New Orleans, La.) 1875-1876, 1876-07-28
Commerce and Resuynption.

Exports exceed Imports For the last
fiscal year. according to estimates by
the Bureau of Statisties, the gold value
of exports OF domestic production was
Eb38, OQ0, 90, aud the gold value o. iIr,-
Forts only $3.50, 0OD.DO0. LII view 6f this
fact, some persons imagine that the
boutwell, theory OF finance, which the
Democratic party persistently and
Justly ridieuled FOR some years, and has
now adopted In its national platform, is
about to be ''vindicated" by u balance
of trade ''iD our favor" Because i'm
ports have declined nearly 40 fer cent
since 1873, so that exports valued at the
point of departure now exceed imports
valued in foreign ports, we are told that
we are growing up 10 specie pay
lnents.' and have only TO repeal the
resumption act, and to continue in the
good work Of paying off oar foreign IN
iebtedness by excess, Of exports. La Due
time, these theorists reason, we shall
reach specie payments by this process
without Inconvenience to anybody.
Neither an excess of exports nor II
real balance OF trade in our favor tends
in any degree to bring about resumption
Of specie payments. Either The GOV
eminent has the means to redeem It's
dishonored notes or it has not. A de-
cline of imports does not put more gold
into the Treasury on the contrary, IL
diminishes the public revenue. An IN
crease OF exports does not improve the
,,osition Of the Government in any way.
The whole theory that we can reach
specie resumption without effort or sac
ritice-that we can somehow get honor
ably discharged from debts without
paying them Is unspeakably absurd,
Foreign debts do not form the chief OBJ
stAcie to resumption. Whether the bal
ance OF trade be on one side or the
other, it is generally insignificant In
comparison with an item which is often
wholly erlooked-namely, the invest
ment of foreign capital here. When
foreign capitalists have strong conn
dence in the future OF enterprises In ibis
country the influx Of capital for invest
ment far exceeds the amount Of inter
est to be paid to foreign lenders. When
that confidence Is shaken or disappears
little new capital comes here for invest
mert. q small share OF interest due Is
reinvested here, and the drain upon our
capital Is very heavy.
Possibly due consideration OF this fact,
which deserves more attention than IL
has ever received, may help 10 explain
why Ii Is that exports rarely exceed iin.
ports except in times of great Industrial
and commercial disaster. We purchase
loss III SUCH bllIltS DtC1uoV OuA DScpAo
consume less we export more because
necessity compels us to sell at lower
rates. In ordinary times. il trade Is
profitable to both parties, the value OF
goods at the point Of embarkation here
Should be less than the value Of return
cargoes at the point Of shipment abroad.
Imports ought to exceed exports by the
cost OF freight and the profits on the
transaction. But in times OF great strin-
gency, when confidence in American en-
terprises is impaired, and foreign lenders
refuse to reinvest their interest. the de-
cline OF imports and the large increase
Of exports which low prices here pro
duce, only serve to balance wholly or In
Part the heavy payments OF interest
abroad. An excess OF exports is not an
evidence of health it is not even an in-
dicatjon that we are moving toward re-
sumption. 1t does not necessarily prove
anything, except that foreign confidence
in American investments is unusually
low, and that our products are being
sold at very low rates.