New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-11-28
4 E1TORABLE 1RADE BALANCE.

The United States Is rapidly becoming
creditor nation in the worlds exchanges. Only
few years ago, it was estimated that this
country owed fifteen hundred millions abroad,
and was increasing its debt on trade accounts
two hundred millions yearly. Now the Gov
eminent debt held abroad has been so reduced
that it is very difficult to get together
in London the bonds desired when
balances TO this country are to be paid III
| bonds or coin its corporate and other indebt-
edness to foreign countries has been greatly
reduced and the official returns of commerce
for ten months ending October 81 show that
we are paying foreign debt at the rate OF
over two hundred millions yearly. The bal
ance of merchandise account IN our favor
is 1927, 100000 for ten months, the ex-
ports of merchandise reaching the enOr-
nous aggregate of $500, 0OO,0 900. More
over, imports of specie exceed exports
IN the month of October by $2,096,SO7, and
during the ten E,ontls by $2,4l6261. 1t is
not unreasonable, in view of the delay In
moving the cotton crop from the Mississippi
Valley. TO presume that the exports for No
yember and December will compare with i'm
ports equally well, and If So the apparent
trade balance for the year will reach about
$2S7, 100000.
This surprising change has been reached by
the concurrent influence of several powerful
causes First among these must be ranked
the vast progress in our industries, not merely
in quantity of products, but in reduction of the
cost of them. Free labor is better than
slave labor, and therefore cheaper IN the
end we produce more cotton with free labor
than WAS ever grown under the slave system,
and il can be sold ut Il lower rate with profit.
Farming on a large scale, aud by the aid OF
all the marvellous inventions of late years,
has brought US not only larger crops OF wheat
than were ever grown in this country before,
but at n cost of production so low that Western
farmers make haste TO sell, although prices are
lower than they have been for about thirty
wears. Our manufactures on the other hand,
have been so greatly developed in the direc-
tion Of economy of production that foreign
goods have been in n large degree ex-
clndcd from our markets by the superior
excellence and chcapneSs OF domestic
products. With these concurIlng changes, II
- natural that We buy less and sell more, and
so extinguish rapidly the Indebtedness ac-
cumulated IN the years when we bought much
and sold little.
Another important change has been the per-
manent transfer of enormous foreign capital
TO this country, since the abolition of slavery
and the success of the Government in sup
pressing the rebellion. Capital is forced, by
its very timidity, to seek home i'll those
nations where the character of the insti-
tutions aud the demonstrated strength of
the Government give sense OF security
and permaneuce. The movement OF capital
hiber has been greatly accelerated, however.
by the prostration of business and consequent
fall in prices which followed the panic. In
thousands of cases foreign debt has been ex-
tlnguished by the transfer Of the ownership of
property, and the capital borrowed during our
speculative period for the development of mines
and the building of cities and railroads has
been permanently fixed here by the transfer
of buildings in New-YOrk, and squares III
Chicago, and mines in Pennsylvania and the
Pacific States, and railroads in every part of
the country, to owners who were formerly
foreigners, and of whom many still reside
abroad. In proportion as their interests here
become large and promising, the tendency
increases to invest profits or dividends in this
country also.
Within very short time-if. indeed, that
point has not now Dccn feacneu-tnls country
will cease to have any balance to pay abroad
on account of interest. The yearly invest
ments of foreign capital here will exceed the
interest and profits due to foreign lenders
or owners Meanwhile, accumulation of
wealth in this country will continue, as
for many years it did in England, by
reason of a yearly payment to our
farmers and artisans for products in excess of
foreign goods imported. In time accumula-
tons of wealth by the industry and thrift of
our people may become so great that like
Great Britain, we shall seek foreign invest
ments for the surplus, but the resources of this
country will require so large sum for their
full development that it will probably be
long before capital can be employed more adj
vantageously elsewhere.
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