New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-02-18
THE ONLY TRUE REMEDY.


Of rorcicu commerce for Lhc month 0f January
disp,oye the idea that there was large selling
Of American securities during that month. Inc
business world must face the fact that pur-
chases of foreign goods are at present greatly
in excess of sales of American products to for
oicncrs. II i, of the greatest importance to
have this fact fairly understood because 1t
pojnts the way 10 the only substantial and
satisfactory remedy for the existing CONDITION
OF things. as respects the outgo OF goid anu
the probable embalra>Smcnts OF tho Treasury.
In the light Of this fact IT may be seen that the
onlv lasting and effective remedy Is such
decline in the prices of some cxpoitablc prod
nets rs will facilitate large increase CT e1-
ports.
Before considering the only remedy which
can be effective. il is well to take notice mat
any sale Of bonds by tho Governments whether
under existing laws or after the possible passage
Of the now bill proposed by senator sherman,
would only be temporary relief. II 1t be true
that the merchandise balances are the cause Oh
a heavy outgo of gold. The Government might
sell so 900. 900 bonds. and obtain IN" & III
for them either from this or from other coun-
tries and vet after few weeks OF such tor
eicn trade a. was seen III the month OF Jan
nary this additional supply of gold would be
exhausted. and the Treasury would be worse
off than il j. now because it would have perna-
ncntly a larger interest - pay.
Nor /, it at all clear that the mere repeal
Of tho silver Purchase act would set things
right at once, a. many suppose. There has
been no mistake made b. the business com
munity IN urging the repeal Of the act fpr that
4 81 and lao ~
permanent benefit But the most important
result anticipated has been that foreign hold
cr> OF American securities would not be dis
roScd 10 soil them. IL i; was generally believed
they had been doing for some weeks pat,
and foreign capitalists having loans or invest
mcntS in this country would MT he III haste
10 withdraw their capital Ii may he granted
that most important cause OF d>tru>t on the
part of sound investors or inancIcr> abroad h1s
been the danger that the United states cur
rcncy might be degraded - silver basis. But
this danger would not be wholly removed. even
if the silver Purchase act should be passed a
the pr sent session r Congress. There would
vet remain the possibility, which noW c)ntr)nt'
the business weird. that at some unknown time
in the future the demands on the Treasury
may become great that lis gold reserve VIII
prove inadequate. and it will be compelled to
fall back upon its stock OF silver for the r.
demptlon of outstanding notes. This danger
also i made important and brought nearer by
the excess Of imports over exports.
When a nation j. buying more than il sells
it is in effect buying more than it can pay for
I'm the long run no country can afford 10 be
sending out each year part Of its monetary
/ pf
exports. If a country Is creditor Of all the
world, so that many millions each year are
payablc to it, citizens from other countries as
interest on loans or investments. then indeed
"A condition of trade may result such ~ has for
years been seen in Great Britain. But just
the opposite il the case with the United states
fos this country owes large amount To the
| people Of other Countries AID large investments
! bv foreigners in this country arc constantly
drawing interest and dividends. Under these
circumstances exports of products must stead
| lily exceed imports of products. in order to pre-
vent depletion of the monetary supply.
When foreign trade gets int IN nnwholc-
scmc state there is only one natural remedy.
4 REIMBURSEMENT Of prices must take place 50
that he markets in this country shall be less
attractive to the products Of other Countries,
and so that the products OF this country may
| he more largely sold abroad 1t has been the
fashion 10 regard the prices prevailing at this
| time especially for agricultural products, Is
exceptionally low. But when contraStcd with
! prices in other countries il is seen that these
are not by any means such a> - encourage the
largest and most ready disposition OF the sur
! plus products Of the United States. Cotton
may he taken aS an example, for something
over cents per pound is still demanded by
| holders, although the quantity of cotton actual
" in sight, here and abroad, is about large
enough to meet all the requirements of the
world until the beginning OF the next crop ycar
/ if not another bale should come into sight from
the plantations Il is true that the crop OF
last year was remarkably short SO that specu-
fators and holders in the small towns and on
plantations have more reason than usual 10
look for comparatively high prices. Bnt the
course of foreign trade proves that the price
demanded for cotton in the last few months
has been such as to cut down greatly the ca
ports of that product.
The same is true of all pork products, for
the price i except ,nally high, and high enough
to prevent any considerable purchases on for
egn account 1t is easy TO say that the
scarcity of hogs, en- account OF the extraord-
nary sales made early last year, affords
justification for the prices now demanded but
this does not alter the fact that exports 10
foreign countries are necessarily curailed. Per-
haps it may be said that the country has not a
sufficient supply Of corn 70 invite large pur-
chases from abroad, but the price Of this prod
net also is such As to prevent considerable cX-
ports For this state Of things there is only
one remedy-a adjustment Of prices. Natural
laws tend to bring that remedy when p ices
have been held too high because OF currency
imitation. 1t is question whether any real