, 1877-08-15

]
to, let 1t be definitely settled III order tint
the Comptroller 1nay correct his bookkccI,-
ing, IT he l,as been heretofore acting under
erroneous advice or opinion.
THE PANIC OF 1873 FoREToLD-1Ts CAUSE
| AND RESULTS.
We published Ho1no tinys ago statement
showing the progress of the foreign trn.le OF
the United Statcs, and tho grcat chango
which has taken placo since 1873 In tllo
| relative values Of our imports md exports.
This tnblo showed tho largo excess Of in,-
ports over exports from 1scS to 1873. After
the panic tl,cro was n ravessnl, and the cx-
cess Of exports over imports Inns boon annu-
ally increasing.
It Inns been n matter Of inquiry what has
become Of this large surplus of exports over
imports, and what oiliea 1t Performs il, tho
international trade. Tho old theory Tint a
balance OF trnda measures a nations @,ros-
/ perlty or loss has been abandoned by NIL
writers, m we'll those who clnin,c.l that III,
ntlvetEe ba1auce OF u lluulrel ulill{ous rcp.
! resented TINT much national loss ns ly those
who claimed that The excesB In tho whine os
the. imports over exports is the incasr,re
OF gain in tho dealing with other ill.,
tions. 1t IL somewhat interesting to find
the IN tho work un Political Economy by
Prof. CA1HsEs, In tho chapter OH inlernu.
tiona1 valucs, Ii traced tho progress of tho
United States trndo, and that it is there
nrgucd TINT TO 1uaiutain their solvency tt,eru
must DO u tinanciM disaster, to be followed
b, q reduction Of prices and au axccs, Of
exports over imports. This work was written
boforo tho panic Of 1873, aud III noto tic
nuthor states TINT III September, 1873, thcro
wero reports from tho United States of tinan.
cial dlsaster, attributed to excessive ra;lroad
construction. Tho grounds On which these
predictions, which heyo been 60 closely ycr;.
tied, wero tnnde n1ay DO thus stated;
Tho equilibrium of commerce IN defined
generally M TINT state of tratlo which results
In maintaining tie real exchanges, exports
aud imports, at par. This Is rarely, II over,
exactly maintained.
In Great Dritain, FROM 1876 to 1870, thero
WINS annually m excess Of imports over u.
ports, amounting 10 $50, ,OoO, 700 In single
year. 4ts sxllains that this large cxcoxa Of
imports WINS paid for partIy In trausporla-
tIon, and largely received in payment of
debts due in England, not sIebta ,luo for
.r,,orto h,t ,1.lt. ;,,.,.,..a ....,,:
-. n.'... '''e"''." o"e7'4e u tsRtle'
ote"1 oFt'"'a Hun oeeh II iellder OF capital to
other aations, and British capital has been
invested In other countries, mud in forejrn
stocks aud bonds. All tleso hayo to mako
payment to oreat Britain for interest, diyj.
tlentls, profits, ETC., in excegB Of payment for
tile ordinary trate exchanges, To my This
tftfror,nra In snoof, ,vn,,t,a ,,,,.
,,,n,- 80, ~ ~'''' "'e" I'LL
=. 6"'u '"so Lnb'"1iu w "o1lhl pro.
dtfcc rlSe III prlccs tAero and fall OF pricea
in foreign countries. The result would be
that England would purchase ,uoro foreign,
commodities md foreign countries ,youit
buy ltHs of English Rootls, u11,i Tin .,,,;,,b-
RUM wo,,ll not bo restored until f,rcat
11ritnin ,nnorted mail. t., .x,,,r. - -.
.,,t.,,;o,,,,,. - +,I.t.. A., - "'Po.'"
~ oo''"'o ss'o Necessity Oh tlla
last VI tno debtof hafion 10 acntl gold to
meet tho extra payments. Vl1iH euniI,hriun
having l,ecn reochc,l. ,,ricou womb ,..,,. H..
81 = I,u,a D., -. "s""' Nv
~ " ",e'' A'o1' oAla"Es to51auiatea the
FFopo8tt1on must
Thu kaatc Of International demand which results
In eH1hlcrctal equilibrium IL realized when tha
reciprocal demand of trad!ng eouHlstes produces
such relation "f lnports aud exports among them
~ enables each country by eaI,s Ut her expe.ls to
1lschafEc I'll her tortIxh liabilities, pos,t,uu
from Which aha following cusrolAry may he Dc.
auced, thut a!l payments dus fruu one country to
4nothef, or IL other Countries Oh plhur ACCOUNTS
ehaa That OF Imports, " \ permanent c!ta1uetcr-
fos example. an animal tribute, tutrrtst IN bur.
ruvct capital. dIsidcn1s ou yIork. mid IN farm
mud In excc14 OF slli1Iur payuientx DUO frutp tt,r
litter 10 The Turner, Will bs represented IN ths