, 1880-09-26

Ih1S result was 1NeVltADIe. lN0 mOmtnt
prices become inflated In this country, that
moment we begin to purchase the cheaper
goods from Europe. So long as the prices Of
our manufactures were low, we exported them,
and importatioEs OF the same classes Of goods
fell of, and European countries paid us for
our exports in gold; the moment we put up
our prices our export Of textile goods
stopped, and our importations Of the cheaper
goods of other countries began. Had it
exports Of agricultural products, the balance
of trade would have been an adverse one, and
all this the result Of the short-liyed rise, in
the prices Of iron aud steel, which was ex-
tended to other commodities.
The payment to this country of gold in
such enormous quantities as have poured In
during the last few years, and which contin-
ues to be imported, is certain to produce two
effects: Imitation Of prices, an initiation in the
cost Of living, and ill increase Of the cost Of
production in this country; and consequent
depression and fail Of prices and fall In
the cost Of production in other coun-
tries. The strikes against reduc-
ton of wages in Europe have failed
because employers have been able to
show their inability to manufacture, and
that it is more profitable for them to close
their works than to pay the wages demanded.
Under the enormous drain of gold, prices In
Great Britain and other European States are
getting down to the harttpau. If this flow
of gold to this country continues, and be-
comes greater than our capacity OF absorp-
hn f%of,
prices will advance, the cost Of production
will increase: Europe will be ready with her
more cheap1y produced wares and mer-
cfandfse, and, instead of gold, we will be buy
ing, as we did year ago, cotton, woolen,
silk, iron, steel, glass, china, and all other
manufactures from abroad, while the gold
will remain in Europe. This imitation will
go on until matters become equaIlzed. The
man or country who can produce at the least
cost will command the market; there Is no
patriotism in trade. So long as we can re-
sIst an imitation of prices, as we have done
for five years, SO long must the gold come to
us; but If tie gold becomes 50 abundant that
it will produce Imitation, then the market
will turn; we will become importers OF
merchandise: our markets will be filed with
cheaper goods, and the receipt Of gold will
stop.
It is, therefore, question how far and how
long we can continue to receive gold and abb
sorb it In our business; how much further
can we find useful and profitable employment
for it. Locked up IN the vaults Of the banks
Of tho Treasury, it is unproductlye and un-
and will-mist-seek Investment
Inv $fna oF and
lower than here. AS soon as we fall to alb
sorb the gold coming to us. then 1t will stop
coming; and In its place will come other
commodities for which market will always
be found. j
On this very point we find the following re-
marks in our New York namesake OF the 23d
inst, discussing the subject Of "dangerously
large imports":
Tho imports last week were dangerously large,
in value to <12. .iy, ,557. This bas heen
exceeded only once fur seven ysaMss; M m in the week
other week, tho one ending April II, the imports
were 81, sUS. and in eight other weeks this
year the vafue has exceeded $l1,W0,W, Very
have been checked by the indisposttion OF pro
1ucers to sell at present prices. From Sept 70
ast year, although the price at New
York was ~ cents lower. At Chicago and !
Milwaukee, too, the receipts Of wheat during
the first half Of September were less than "rc- |
.hsrd the quantity received during the, same |
weeks last year. Corn receipts and exports, 1t
s true, are q little larger than they werc last |
year, and the ,prtce is three cents higher. But
he gain In that respect is comparatively 50 !
mail that the exports OF domestic products |
must full materially below those OF last year in
rniue, until the free movement of wheat begins !
agatn. L1rpely increasing Imports and decreas- |
ny exports threaten TO Arrest the How of gold |
% this country. and this, In the present cond..
lu'ckiy produce serious disturbance, at least |
fhr time.