Daily Los Angeles herald., 1879-10-05
Traas,s,on Perioa.

represents all countries III ltS GULL
position, patterns, in bushes affairs,
on Tho motion of old ocean. We
have our ebhs and flows, the cesslon
and retrocession of the sea, in our
business operations. Since 1878 it
has been all ebb, apparently, but
not in reality. For the first three
years it was really disaster to our
people, but 1t was a disaster by no
means unrelieved. Our bonds.
carrying g comparatively high rate
OF interest, came trapesing home,
thus stopping the arterial and
deadly flow of gold coin to Europe
In the shape of interest. For the
last three years we have not only
been recovering our bonds in large
quantities but we have also been
steadily gaining in gold and silver
coin. To-day the last bond of the
United States which European Gu
pldity will surrender is owned by
citizens of the United States, and
the influx of coin from abroad for
our products is prodigious. When
we shall have received the last dol
lar for the outgoing crops of our ce-
reals, cotton, American meats, but.
ter, cheese, and the hundred and
one other things sought of us from
-pbsoad, the balance of exchange In
our favor for the year will probably
amount to nearly four hundred
millions of dollars. 1t is useless to
look for any more of our bonds be-
ing sent back. On the contrary,
there will probably soon start up a
now of them towards Europe. Peo-
pie don't want TO ssll-instead they
want to buy-the securities of a
country so prodigally rich, and SO
assured of a grand future, as is the
United States.
The fact is that we are face to
face with an international financial
crisis. The Significance of what
is passing in the sight of every
one is that the United States,
from being a debtor, is about
to become the leading creditor ma
tiono the world. There is nothing
of "spread eagle" or fanfare about
this postulate. 1t is as remorseless
in its truth as the very processes of
logic itself. Why?
We admit that the present year
is exceptional. 1t is hardly fair to
assume that England and Europe
generally will often know such
years of crop disasters as the pres
ent. But it should not be forgotten
that, without any such drawbacks,
the balance of trade in our favor
has ranged from two to three hun
dred millions of dollars for the past
three years. The difference has
been made good hitherto by a re-
turn of our bonds, and of these
bonds the last one has now been re-
turned. They are by long odds the
best security in the world. They
have. as an Investment, value
which the bonds of neither Eng
land nor France can claim, and this
fact is now appreciated. Since 1873
we have had returned upon our
hands at least eight hundred mill
lions Of these bonds. Their aver
age rate of interest has been five
per cent. But put the figure at four.
We have, therefore, in coin inter-
est, saved annually during these
three years, say fifty millions of
dollars. This year and hereafter
we shall save at least thirty-two
millions of dollars annually in this
exported coin interest. To this sum
should be added the three hundred
and fifty millions of dollars which
we shall receive during the next
twelvemonth. Assuming that,
since 1878, our coin resources have
been increased an additional hun
dred millions of dollars, by remit
tances other than bonds, from Eu-
rope, on that superstition, by thi
time next year, our stock of coin
ought to be at least five hundred
millions of dollars more than it
was in that year of signal CONNER.
cial and financial disaster. The
general estimate then was that we
had in this country, of gold and sill
yer, about three hundred millions
Of dollars.
It thus requires but very small
balance of trade In our favor here
after to make money abundant in
this country beyond precedent. Adj
mitting that the extravagance of
our people should grow with their
growing wealth, 1t is yet not I'M
reasonable to assume that we shall
receive one hundred and fifty mil
lions of dollars a year in excess OF
our European outgoes. Even with
this moderate balance of trade in
our favor, the story of our soon
enormous national wealth is fully
! disclosed.
But this is not all, by any means.
We shall not only profit by the
coin interest, heretofore exported,
and now kept at home, but by the
products of our mines as well.
These have for some years kept
closely in the neighborhood Of one