The times. [volume] (Richmond, Va.) 1890-1903, 1893-08-06
A VERY SERIOUS MATTER.

fclcwing very interesting ar:icie in ast
Thursdays New York Times:
Wcrthington c. Ford. chief Of the Bu-
rCau Of Statistics OF the Treasury Depart
m.nt. who Is now in this city, has dis
covered I'm the figures Of which lac IS
u aster conclusive proof that exports Of
gold have been due to the Sherman SLY r
law.
Ex-PrcsiGent Harrison and 9th n de-
fende.J Of the Republican party nave &C
cot bted for the heavy outflow OF gold,
IN ounting FOR the year ending June SOth
10 $4,000 900 above receipts Of hat metal
from abroad. TO excessive imports Of
merchandise. They call to their aid to
support this assertion figures from the
Bureau Of ctaustics, which show for tho
same period a balance OF trade against
this country of $4,000 900.
Mr.. Ford discovered that OF this great
sum, $50 600 il fictitious, leaving the
actual balance against the country about
sl8,00o.010. The difference between he net
exports of gold and the actua adverse
balance Of trade is close 10 $40, 100000.
Ibis loss represents the effect Of the
Sherman law for the year. Mr.. Ford says,
and can be explained in no other way.
The disparity in the apparent and
actual balance OF trade" SAYS Mr.. Ford.
has been caused wholly by bookkeeping.
by which II appears that imports from
countries dealing in a deprecated curren-
cy nave been entered at their face value.
instead OF at their actual value in gold.
IN december 1t was discovered that coffee
arriving at this port from Brazil was in
voiced AZ about % cents per pound when
1t was selling in the New York market az
IRON ~ cents TO - cents per pound
There was something manifested wrong
In this condition. and the Treasury Of
hcials, assuming that there must be an
absurdity somewhere, began 10 look into
it.
1.-THE confusion and the errors were
traced 70 a ruling Of the Department of
State In February. 1892. which abolished
currency certificates from United States
consuis. Before hat time the practice
had been for consuls TO issue to exporters
or importers, along with the consular in
voice. a certificate showing the gold value
OF the shipments described in the invoice.
For this certificate the fee Of 81 was
charged. The certificate proved a conve-
nience TO the customs officers at this
port by enabling them easily to assess
proper duties upon imports.
Early last year a mail importation
OF oil was made from Italy. the invoice.
as usual, being accompanied by a cur
VIZ W ~ AAAAION e Ant Nv
question Of the necessity Of such a cer
tiicate TO accompany goods which were
on the free list under our tariff, or those
which were subject to specific duty.
This appeal was addressed TO the
Department of State and passed over to
the Treasury Department for the purpose
Of inquiry as 10 the necessity of currency
certificates in cases of this character.
Assistant Secretary Spaulding gave IT as
"A. Ill a.. H. 1-.AA a. 49, sw.g
classes Of imports currency certificates
were not needed, u a circular of con-
suls was sent out from the Department
of State abolishing the currency certih-
cate for all imports which might be adj
mitted to this country free of duty or
subject to specific duty.
1T was after the issue OF this order
that our errors IN bookkeeping began.
We import from eight or MIN countries
which use an inflated currency. Except
I'm the case Of Brazil, however. the i'm
ports are not sufficient to make a differ
ence between actual and apparent values
at all serious. With reference to imports
from Brazil. especially imports Of coffee
and India rubber, the difference between
apparent and actual values has been up
ward of 30 per cent. and imports Of these
articles have been of sufficient volume 10
run the errors of bookkeeping speedily
up into millions Of dollars.
For the year ending June 30, 1892, the
imports Of coffee from Brazil amounted
10 5S7, 100000 pounds. valued at siI6, 900, 900.
The imports for eleven months Of the
fiscal year ending June 90, 1893, amounted
TO 49s. O00.O 600 pounds. which were 'alued al
sl2S. 600. 600. According 10 these returns, IL
appears that there was an excess In 1892
Of about 5000 900 pounds Of coffee, but
the cost or value OF the same was about
$1,000. 900 less han In the eleven months
Of 1893.
"rhe Brazilian milreis. by which values
In that country are measured. is worth
In gold Only about "A per cent. OF It's face.
In spite Of this fact values have been
entered according 20 invoices, and ! am
assured by Mr.. LAM. chief Of the De-
partment Of Statistics at the custom
house. that / shall be entirely safe in de-
Quoting from these invoice values 80 per
cent. In order 10 get at actual values.
The same rule viii apply TO imports Of
rubber from Brazil. About the same
quantity OF rubber was imported in 1892
and 1923. but the values i'm the invoices
OF 1898 were much heavier than those OF
the preceding year. although rubber has
had a steady market all the time. In
other words, rubber has been imported
during the last year under an inflated
value.
Imports from Brazil for the year
have amounted 10 n little less han Sl52, -
10000. Deducting 20 per cent. from this
total TO make allowance for the depre-
clated value OF the Brazilian currency,
we reduce the adverse balarce OF trade
for last year in ell The markets Of the
world from 500 900. 900 to siS.0OO.0O0. There
can therefore be no possible connection
between our heavy gold exports and our
iw pc,fs OF mef thandise. ThA only VA y
10 explain the heavy gold experts Is 10
attribute them to the working OF the
silver law.
AN effort has new been made TO keep
the bookkeeping straight for the ensuing
year by means OF u circular order which
has been sent out by the Secretary OF the
Treasury TO collectors and other officers
OF customs instructing hem TO re t1i e
irr orters or exporters TO attach TO in
voices OF goods watch are free Of duty
or subject 10 specific rates Of duty the
gold value Of the goods at the point Of
shipment at the time that they are
shipped. This does away With the FAX
Of 81 for a currency certificate, and tho
Secretary OF the Treasury is hopeful that
Il may obviate all such dangers OF run
ming into absurdities as have been en-
countered In the bookkeeping OF the
Treasury Department in respect TO i'm
ports 70. the last year"
We gave Judge Hughes the benefit OF
an adverse balance OF trade against us
for the fiscal year ending June 80, 1879
OF sis,ooo.ooo. But 1t seems now. however.
that that balance Ia TO be cut down 70
gAtooQ4ooo against The maguincent hsiaacs