Little Falls transcript. [volume] (Little Falls, Morrison County, Minn.) 1876-1894, 1880-02-27
The Logic of Events.
A Washington telegram to the Pioneer
Press, dated Feb. 10, contains the follow


Press, dated Feb. 10, contains the follow
ing: ~ ........-...,
"From the reports received at the treasury
department it is learned that the imports re-
oeiyed at the port of New York during Janua-
ry were greater than ever before in the his
tory of the government for that month, reach
ing in value over $40,000,00 It is also es-
timated that, although the exports were az
large in January as is usually the case in that
month, the balance of trade will be against
the United States, for the first time in FIVE
years. For that length of time the balance of
trade has been steadily growing incur favor,
but it is the opinion among experts at the
treasury department that it will fall of ma
terially this year, even if the balance does not
prove to be the other way. The character of
the goods in which the increase is found shows
that the revival of prosperity has brought with
it a return of extravaganza in the purchase
of luxuries, which characterized our people in
what were known as "fush tines after the
war era"
Our readers will remember that during
the hard times of 1878 the Republican
politicians and newspapers, and even
President Hayes insisted that this coun~
try was shown. to be prosperous BY the
fact that the balance Of trade with for>
eign countries was then largely IN favor
of the United States. The Pioneer Press
was then persistent in setting forth this
allaclous argument. The Transcript re-
peatedly exposed the untenable features
of the position taken by tie Republicans
on this point, and did 1t so fully and at
such length that we did not expect to take
up the subject again very soon. But the
logic of eveats have proved that the
Transcript was right, and that there cam
not be large balance of trade in favor
of this country during an era of prosper
ity, and that it can be only when times
are very hard. The following extract
from an editorial that appeared in the
Transcrip pit of the 18th of June last, shows
briefly that the position of the Transcript
was in exact harmony with the facts in
the case, as shown by later events, and
as is very forcibly presented in the Plo-
neer Press telegram quoted above.
sIn 1871 there were 1870 miles of railroad
built in the United States, and at the prices
then current at least twenty thousand dollars
per mile must have been paid to laboring men
engaged in manufacturing railroad iron, in
grading and in the various kinds of work
necessary. The entire sum paid to these la
boring men in that year, according to the es-
innate given above. was more than 153 mil-
lion dollars, representing the labor of $780,
600 men at 1912 per year each. It is evident
that while these z50,OOO men were building
railroads they were producing nothing for
foreign markets, and that they were consum-
ing the surplus produced by those not engag ged
in railroad work. It is also evident that they
had 153 million dollars to spend in the home
markets. That year was noted for progress
in improvements, not only in railroads but IN
everything else. And what was the result
During the fiscal year, ending on the 3Oth of
the following June, the balance of trade against
the United States was greater than ever before
or since, 1872 million dollars. But it is plain
that this large balance was not caused by
hard times, but by prosperity. People then
had plenty of money to buy with in the home
markets, thus reducing the amount of commod-
was then engaged in making permanent i'm
provements instead of merely producing grain
and goods to be sold in Europe, as they have
been compelled to do since the hard times
commenced. A large excess of exports over
imports is not in itself an evil, but it shows
that an evil exists, except in countries where
the natural resources are already fully devel-
oped. It is not the disease, but is the evidence
of disease. The balance Of trade turned in
favor of the United States in 1884, just as
the hard times commenced, and during the
past four years the balance in favor of the
Uneted States has been very large. In the
fiscal year ending in 1869 the balance. of trade
against the United States amounted to l3l
million dollars, yet that was a prosperous
year; and in the fiscal year ending in 1877
the balance of trade was in favor of the Unit
ed States to the amount of ISL million dollars,
yet 1877 was particularly distinguishable for
extensive strikes, destitution, rags and starva-
ton. 1t is therefore plain that favorable
balance of trade is not necessarily an indica-
tion of prosperity, though it may be so in
some cases and under certain conditions. The
balance of trade will usually be against the
country where labor commands the highest
price, money brings the highest rate of inter-
est, and prosperity the most general"