The Cincinnati daily star. [volume] ([Cincinnati, Ohio]) 1875-1880, 1878-11-07

6ACeeu our eA pOrIs, we ue uolnB d OellS
business in our foreign trade. That is
the kind of business we were doing down
to 1874. This kind of business necessari-
ly created great foreign debt, which had
to be paid in coin or its equivalent. Our
coin, under this drain, became nearly ex-
hausted; and the only equivalent was
found in our Government bonds payable
in coin. These were consequently sent
abroad in immense amounts as a medium
of commercial payments to meet this ad-
verse balance of trade. Of course the in
terest thereon had to be paid to the for
eign holders.
But, in 1874, we began to change all
that, and have been at it ever since in an
increasing ratio. In 1878 the balance of
trade was against us to the amount of
about SIS, 100000; whereas in 1874 we
imported, in round numbers, SIC, 1000
less and exported $44,O0O,000 more than
in 1873, establishing balance in our fa-
vor of $97, 1T ,S06. This was a good be-
ginning towards financial recuperation so
far as our foreign trade was concerned.
In 1875 our balance amounted to $780,
1SS,614. In 1876 we increased our gains
to $16S, 278,535. In 1877 we did still
better and found balance in our favor
of 1882, 2,704,039. The statistics for the
current year, 1878, made up for the first
nine months, to October 1st, show still
larger balance accruing in our favor, and
which, taken as the basis for the whole
year, will give us $261, 100000 of gain in
the excess Of our exports over our inn
ports for the present year, Thus, during
the five years from 1874 to 1878, both in
elusive we find that our foreign trade,
instead of yielding us loss as before, has
yielded us balance in our favor amount
ing to the splendid total of sos, ,94S,9 ,994,
almost eight hundred millions of dollars.
Under the showing made by these
figures, derived from the official tables
of statistics, we would presume, of course,
that a counter-current of remittances
from abroad would set inward, as before
it had flowed outward. And so it has.
Coin, or its equivalent, is coming back to
us. We read daily of arrivals of gold
from abroad. To such an extent had
shipments of gold from London become
common that we read not long since that
the Bank of England had raised it's dis
count rates to prevent this drain of gold
from that country to this. The i'm
mediate effect of this was, and was so in
tended, to compel remittances to this
country in our Government bonds as a
medium of commercial payments 10 meet
this balance of trade now due to this
country, and consequently the interest
thereon is now to be paid to the holders
at home. And now we are informed, on
the authority of the Treasury Depart
ment that by far the greater portion of
our bonds heretofore in the hands of
foreign holders have already found their
way back to this country through this
channel of commercial remittances for
the settlement of trade balances in our
favor.
But, it is evident that this source of
remittance can not continue. The sup
ply of bonds in foreign hands must soon
be exhausted as for commercial purposes.
Then, if our foreign trade continues as
now, foreign gold must inevitably seek
our markets to liquidate the balances
arising in our favor. There is no al
tentative. Consequently, there is snothing
to hinder this country from gaining great
wealth, in so far as coin of the precious
metals can constitute wealth. And on
this foundation, both solid and safe, our
domestic trade and industries can not
fail to once more become active and pros.
porous.
We know that, as indicated by a re,
cent report of Victor Drummond to the
British public, our English cousins are
consoling themselves over this growth Of
our foreign trade by the idea that it is
the result Of our desperation; that oul
exports are made up of surplus stock
which can not be sold at home, and il
therefore thrust upon foreign markets te
be sold at any price obtainable. But this
is not true. There might have been such
instances under the immediate stringency
of the panic Of 1873. But we must con
slider that five years have since elapsed
and our foreign trade has gone on contin
ually increasing, from balance. in oul
favor of $97 100000 in 1874, to $261, 900,
900 in 1873. This does not look like
forced sales of surplus stock from sheer
desperation. Merchants would not b
likely to keep up losing trade for five
years; nor could they. Much less woult
they increase that losing trade to nearly
three times it's former volume. And oul
present most abundant crops of every
class known to our agriculture afforc
most reasonable assurance that our for
, eign trade, now SO prosperous, will con