The daily gazette., 1879-10-04
sXTU1DAY. OCTOBER :. 1879.


aTsr BALANCE OF TRADE,"-Noth-
ing abort Of a revolution in the trade OF
the country with The world, has taken
plsce since the crisis in 1878. Inc pai-
sncs Of trade previous to that time had
mostlv hem against us. Yet the coun-
Try psspered and grew more rapidly
than any other country. The theme OF
the political economist must now lie
changed. Heretofore il was always saio
We we're ..going behind because 1.-THE
balance OF trade was agAii st us. But
really up to the Rebellion 1t did not lo.k
ike we had ever "gone behind Now
the uba,ance Of trade" is with us, and
the question arises what are we to do
with our surplus money! We have now
n delt of some three hundred and nifty
millions in greenbacks lying loose about
in The banks OF the country, for which
we are not paying interest; and about
two hundred and fifty millions OF specie
for which We are paying iLteres', having
purchased good part Of it. This seems
useless. Under former systems this gold
aud silver was kept by the banks in order
10 redeem their notes. Now, the banks
redeem their notes with the green-
backs the government has lyink around
loose, and hence they are relieved, while
on the government is imposed the duty
and expense of keeping tie specie to
maintain paper money at par. IL Is
hoped that under the new feature, that is,
with the balance Of trade in our favor,
we shall prosper more RAPID than ever.
A young man runs in debt for farm, ii
takes all he earns apparently to pay his
interest but gradually he gets the rIiu-
cipal paid and begins TO lon to his
former patron. In this case, if he dues
not negleet his farm, and is:not more ex-
travagant, he begins to accumulate, per
haps twice a. rapidly as before. 50 it is
with countries. But will We not grow
too extravagsnt, and fall back until the
"balance of trade" will be against Il.
agains Time VIII tell. But it seems tC
US that immigration will be more rapic
than formerly, and that much better
more intelligent aud well-to-do class o
Europeans will make this country thei
home; that they will bring lar.e sum
Of money with them to buy land, AM
that the country will IN the next te
years prosper more generally and gro'
in wealth more rayidly Il an ever II
fore.
A careful examination Of the course {
our foreign trade since the close Of IN
wsr shows that during the nine yeal
ending June 80. 1873, the imports es
ceed.d the exports by annual amount
vary ing betwt ell ST., 100000 and S1S2
OOO, the highest surplus being reached i
the year next preceding the panic, All
the average yearly excess being 500, 800
coo. During the six years succesdif
the panic the exports have, on the col
trary, exceeded the imports, on an ave
age, by $l25,OOO,000 per annum.
other words, during tie nine years pr
ceding the panic we imported SsoO,0OC
OOO moie Of goods lhan we paid for Wi
goods, while for the last six years v
have exported goods valued at $3.50, ,0Ot
QUO more than the goods we have il
ported.
For nine years preceding the panic Il
net exports Of specie. e., the excess
exports over imports-averaged $5S, ,50'
OOO per annum, while for the subseque
sl1 year, the yearly net export has ave
aged sc, 0,OO0,0OO. Adding these factc
TO the merchandise movement, we liza
the following results for each OF the t,
periods -
NINE YRARs PRECEDING THE PANIC.
Excess OF goods imported over
goods exported. ............. $500 o 70,
Deuuct hoS cAPoft Vi Specie. OZI,uDu,
Balance against United States s363. .UVU
SIX YEARS FOLLOWING THE PANIC.
Excess OF goods exported over
good Imported. ............... .&750 ,00A
Aud net export OF specie. SO. IA wv
Balance credit of United
oIates....... WI ,OOO
OF this 1924 ,000, ,0G0 about SO, 900,
per annum, or a total Of $42O, ,00O,(
has been required for the payment
,terest on American securities !
abroad.
These figures show that 500, 600
Of our foreign indebL. dness has
liQnidated since the panic Of 1873.
important to keep in view the fact
these payments will materially re-
the amount to be paid in future fo
tsr.st ON our foreign indebtedness.