The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-07-10
TIE BALANCE OF TRADE.
If 1t Is Against Us Under Protection. What
Will Happen Under Free Trade?
To the Editor OF the indianapolis Journals:
The appended editorial paragraph ap-
naarad in tina Journal of the 9Th:

The appended editorial paragraph ap-
peared in the Journal of the Eth:
One year ago the balance of foreign trade was
heavily In our favor, and the commercial and
financial tide was strongly setting TO American
shores. Foreign capital aud workmen were COM
ing hither. and scarcely q week passed that
some foreign manufacturing establishment did
not announce It's purpose OF transferring It's en-
tire plant to the United states. Now all these
conditions are reversed. The balance OF foreign
trade is against Us, and We are debtor, instead OF
creditor, TO Europe. Foreign capita. is not seek
ing Investment here TO any appreclable extent.
For several months past no foreign manufactur-
ing establishment has transferred Its plant 10
this country, and the commercial and financial
tide does not set toward America. One year ago
the GENTRY was enjoying Republican prosperity,
while to-day it is i'll the midst OF Democratic ad-
versity.
Ii this there is food for thought. 1t
touches q line of argument which many of
our leading newspapers deem advisable to
dlscuss In a very Gingerly manner. The
balance of trade being against US is. In
strin genCy, or. since the President has
''seen hit" to call Congress together, what
some papers alludo TO as q rip-snortIng
panic. since the balance OF trade set III
against Us We have paid to European cOun-
tries in the neighborhOod of S7O.C COO, coo in
gold. This balance of trade. the thing
which has robbed us OF so vast q sum of
gold, is principally due to the poor cODdi-
LlOD Oh dlulIe WulCu now 6Alet6 III EuklduU
and several other continental countries.
Az unsound system or finance temporarily
stimulated trade In Australia and the Ar
gentine Republic. Business doomed IN
those countries for awhile. Finally the
day OF settlement hove IL sight-and very
unexpeotedly-and chaos soon reigned
supreme. Men could not obtain money
with which TO liquidate. hence property
tif the creditor was lucky in finding any,
settlements resulted. All England was
especially affected by the turn OF affairs
in those foreign chimes, while the other
European count ries they arc connected as
one spider web were none the better OFT
OH account of the wear and tear. For some
time Europe has been enjoying hard times.
She feels Door, as 1t were. and her people
are not buying any more goods than ls ab-
sOlutely necessary. This being the case.
American goods find a poor market there
a. the present time. Until times brace
ND" across the water we will find a market
for just what Is actually needed, unless
prices of certain manufactures products
fall below those of Europe. which are very
low at present. and can and must remain
30. because the average workman of the
countries abroad Except Englandl occu-
pies n lower plane than Goes the American
workman. They are accustomed to living
much cheaper, hence are content with low
wages. which are now the order of the day.
Besides che $4,000. 900 in gold which have
left our chores To settle balances. a like
amount has also slipped away during the
pass tCCb iObSAi 0l1osOOopONO
In all. Of this latter sum il is fair to as
sume that q portion of it-say $40. coo. coo or
SIS, 090. 900. the Lord only knows how much
went abroad as dividends on securities
held by foreigners. but what became of
the balance of iul Where did it go? Who
received IL! For what purpose was it useds
E~chO-well, even 1t Is silent on the subject.
There can be but one conclusion. Austria
and Hungaria have recently adopted a sim
gle standard, a gold basis. They needed
gold to build up a reserve. They have sue
ceeded in obtaining a part OF the amount
necessary. Where did they getit' IL they.
or their agents owned or became possessed
of American securities there are tens of
millions held abrOad). they could easily
have converted them into Gresnbacks or
coin certificates and had them redeemed IN
gold at the subtreasury In New York. The
door of that institution Is always open. and
he who possesses that which Is redeemable
lgreen0acks or coin certlhcatesl can get the
redeemer. gold. Our barn door always
stands aJar, leaving the last horse IN more
or less danger.
All told. then. $40, 900, 900 in gold have
been shipped abroad What was the re-
sulti Our business could not tan SO
great q contraction of the currency. The
money centers of the land soon saw what
must follow. and began TO hold their funds:
money became tight. Firms were unable
to negotiate loans To liquidats debts and TO
tide themselves over. hence s~uccumbed to
the fate which awaits business houses at
such times. A few failures caused q lack
OF confidence. Then came runs on banks.
And. nowf The money of the country is
locked up. And it will remain locked up
until a restoration of confidence comes.
When will that BET When failures cease,
those things which invariably shake con-
fidenoe. When will failures ceasef When
men can tide over the trouble. If unable
to tide over. then. when insolvency ceases
to be "a thing of the prssent-when the
natural outcome. as gauge0 by the past,
stRres Us IN the face-when the weak shall
have been swept away. And yet some peo-
pie lay the cause of the present crisis at
the door of the Sherman law. Ii this Is
true. why not place 1t at the feet of SEN
etOr Sherman, aud have done with IL!
But TO return TO the question of balance
of trade. Our Demo cratic friends are just
now IN n peck of tron0le. They have been
bowling reform for so many years that the
very garb which covers this tiger is made
of the word: In fact, so accustomed have
they become To bowling reform that the
word has lost Its meaning. Last fall they
yelled tariff reform, and tho people who
supported Mr.. Cleveland ex pect something
of that color. When they crie1 tariff re-
form last fell there was not one speaker or