The Dallas weekly herald. [volume] (Dallas, Tex.) 1873-1885, 1882-10-19
THAT "BALANCE OF TRADE" NON
SENSE


best as well as oldest agricultural journals
in the country, contains: in its last issue
the following article, captioned Exports
and Imports-A Bad Showing: "Last
year we presented some interesting figures
showing that for a year previous to August
l, 1881, we had sent abroad from this coun.
try products amounting to 1921 ,784, 1888
while we had imported only $753, $40, lbs
worth, leaving balance in our favor Of
$16S 5ii, 06S. These figures include gold and
SILVER, which are as much our products as are
wheat, corn, cotton, petroleum, etc. But
by the figures just received from the bureau
OF statistics, we learn that the total exports
for the twelve months prior to August
1882, amount to only S767, Ill 1854; while the
imports amount to 500, 959, 736-an increase
of $46,7l9,6l1 over the previous year, and
leaving balance of trade against us of
$50, Sl7,772. The bad picture is that we are
50 largely importing and consuming for
eign manufactures and luxuries, import
| ing more than we are paying for with our
| own products. Last year we received $9l,-
JOS, 600 more gold and silver than we sent
abroad. The present year we
sent abroad $6,9i50S9 more than
we received from other countries"
Is it not about time this "balance of trade"
nonsense was assessed at its proper value,
the grandchild of the absurd old Bullion
theory" which was the mother of the silly
Mercantile theory or system, so fallacious
in principle and pernicious in action, which
with narrowness Of vision that is re-
markable, that gold and silver are the
only values, then by all means keep them
in the country, get in all you can and let
"balance of trade make your exports great
and your imports little" just as silly as its
immedediate ancestors. The trouble
springs from the false ideas about ''protec-
ton" The ideas are of close kinship and
issue from the same black sheep. The ar
gument about getting all the gold and silver
balance, carried TO its extreme-and this is
the way to test the value OF q principle
amounts TO this, that series OF years
would put man or nation in
possession OF all these metals serving
as money, so that no other nation would
have any. How much better off then is
the miser, whether this be an individual or
a nation? Mountains of gold and silver
and nothing of commerce, like the water,
water all around and not a drop TO drink"
Let us lry a couple or actual transactions
that took place and see the practical opera.
ton of this balance of trade" business.
They are related by a French
man, Mn. BAsTIAT, in this wise:
A party has two business ventures
with two different results. Mr.. A.
dispatched a vessel for Havre, freighted for
New Orleans, with French merchandise,
valued at $4,000, as entered at the custom
house. The cargo, on its arrival at the port
of New Orleans. had paid 10 per cent ex.
penses and was liable for 30 per cent du-
ties, which raised its value TO $4,000.
1t was sold at 20 per cent. profit on its orig
inal value, which made the price Of sale
S32O, 900, and which the assignee converte5
into cotton. This cotton again had pay for
expenses Of transportation, insurance, COM
missions, etc, 10 per cent. Therefore. when
the cargo arrived at Havre, its value had
risen to 1885,. 600, and it was 50 entered at the
custom house. Finally the party realized
again on this return cargo 2Oper cent. profit.
amounting 10 $40, 400, the cotton therefore
selling for $40, 400. Now, what have we
here2 A credit to profit and loss,
as gained, two sums: the one
of $1,000. the other Of $4,000.
We consequently note that France ex-
ported $4,000 and imported sS52O0o.
Now listen 10 the conclusion Of the Ameri-
can Agrioulturisi. Therefore, France has
spent. dissipated a lot Of money or goods. /
she is hence progressing TO her ruin; she
has squandered upon a foreign nation $751; |
900 Of her capital" Let us put another case.
Sometime after this transaction the French
man despatched another vessel, again 1
freishted with French products 10 the
amount Of s3OoOO. But the vessel f1un- I
dered aner leaving the port, and
be had only farther 70 inscri5e on ]
bis books Two little items, thus aorjei; Z
'sundr1es due % X s1OoO1o for purchase /
sf sandy articles despatched By vessel =
Add. "rroftfnd loss due 10 sund les, s3lC.-
30 for final and total loss Of cargo" IDths /
meantime the costoTn-house inscribes uDon .
re book Of expectations s2ooOlo. and as
here can cf course be nothing 10 balance
his eniry On the list Of importsiiorss Il
pence foilors that the American Agricultn-
ia mus see IN Ibis wreck clear profit 20 4
FrnDos Of f30no0 Therefore nndsr tbs
shalnnre 81 trade fteOrF. Francs
hss a1 sEcsedinxiV staple rnannsr
II csnsautly doubling her esDital- (
Il = oniy necessary 70 nceonplish this that
ne sbould amer entering into ne cus,on-
Bouss. ssJs Ma B.s11s1. hs1 a-iili-s Or