New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-08-29

A very interesting table is given, showing the
average price each year since 1860. While
Mr.. Nimmo's facts are of great value, the ac-
cOmpanying comments prompt Suspicion that
he has not fully grasped the important truth
that a shrinkage Of prices in any coun-
try surely produces a decline OF imports
because that country becomes less ad-
vantageOus market IN which to sell, ana
as surely produces an increase OF EXPORTS
because that country becomes more advah-
tageOus market in which to buy. Hence. the
very changes in the currency which some theO-
Tists deplOre, because they cause shrinkage OF
prices, have been the chief agency in causing
a reduction in imports, an enormous increase
in exports of domestic products, and rapid
payment of foreign indebtedness. But the ex-
pansion of currency for which these theorists
cIamor, because it would tend to an advance
of prices, would inevitably stimulate imports
of foreign goods, subject home producers to
more severe competition, and check the growth
of exports of domestic products. An increase
of foreign indebtedness, and OF interest annu-
ally payable abroad, would be the natural re-
suit. High prices here tax this country for
the benefit of foreigners. Low prices here tax
foreigners for the benefit of this country.
While Mr.. Nimmo does not state this truth,
his ample statistics abundanty illustrate it.
From 1860 to 1878 there was general adj
vance in the average of gold prices here,
although during the war, when the cur
rency was greatly deprecated, the prices
in currency were nOminally higher than
they were after the war. The imports
increased from $336,2S2,4S5 in 1860
to 1924, 1877 in 1874, and it is undoubt-
edly true that this enormous demand for
foreign products at high prices contributed to
cause an unnatural advance of prices abroad.
On the other hand, the exports OF domestic
products did not increase more than 80 per
cent from 1860 to 1872, and 59l2 per cent
from 1860 to 1878, while the increase In I'M
ports was nearly Sc per cent Thus the excess
of imports of merchandise rose from S2O,OOO,-
600 IN 1860 to $119, 656,2SS in 1873, and
in 1872 it was 1882, 4l7,491. An enormous
foreign debt was created in these years, which
could be met in no other way than by re-
ductlon of prices here to the specie level, and
a consequent decline of imports and in
crease of exports. In 1878 that change began;
the imports shrank to $500, 1876, S34 III 1878,
or 1913 per cent, while the produce exports
increased to $3.50, $50, 79S, or 25.S per cent.
Thus the balance of trade was changed from
$119,656,2S8 against us, to $2577S6,964 in
our favor.
The elaborate tables given show that the in
crease in domestic exports since 1873 has
been mainly in the following articles: bread
stuffs, increase $S3,031,356; provisions,
$40, FOG, 722; cotton manufactures, %S, 4Ss,1OO;
copper and brass, 1924, sos; live animals,
1881, 2O6; leather and manufactures Of,
$2,772.165 petroleum, $4,52421S; oilcake.
1,4S3, col. In these eight classes the increase
was over $152, 100000, and the aggregate
increase of exports since 1873 was about
$175, 100000. On the other hand. the decrease
in imports has been manly of the following
articles: