Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1894-06-29
Mr.. ]. F. Jackson on the Balance of
Trade

The following Is an interesting letter
on the subject of the balance OF tfahe.
we haze several times referred TO cele-
brated annual report of the Hon. r. }.
Walker, then Secretary of the Treasury
whose contention as to the balance OF
trade was what Mr.. Jackson's conten-
ton Is now. For many years the con-
hicting contentious on this subject nave
been familiar to us, but we have rarely
considered it wise to engage in the dis
cusson Of them. Nevertheless Mr.. jack
sons letter will serve TO inform voters
who have not had the privilege of read
ing up on the subject
In an article in to-day's CWednesday9
issue you take up and support the con-
tention Of the President that the balance
of trade IL now I'm favor OF this country,
and that therefore we should be con-
tent, as we must necessarily be growing
richer every day. and with continu-
ahee of existing conditions in the export
and import markets the present hard
times" must soon pass away. VIII You
pardon my presumption In daring to
take issue with the President and your
self on this point and allow Inc space
to discuss the matter? At the outset |
would like TO say that either the Presl'
dent has been misreported or he has
made mistake In his figures. lie Is
quoted as saying that the balance Of
trade was against us TO June LIST last
year TO the extent Of sGi,OCD0CO, whilst
this year TO the LIST of June II Is In our
favor to the extent of s62go,Oc0. making
a difference of sl26O0.OOo in our favor.
The correct figures are, l believe, last
year 10 June lst excluding gold and sill,
ver), SEA $50, 0i6; this year to June lst
1921. 10000 If then this is a favorable
state for the country to be in, the po-
sition is now much better than that
stated 10y the President. Instead OF
being better off by sl2GOO,0o. we
are better off by se95.552,.Oi /, however
entirely dissent from his view OF the
matter / believe that Instead OF being
better off we are so much the worse OF.
Let us look into this question OF exports
and imports upon which arises the bal
ance of trade. The exports OF a coun-
try are the sales OF its products
and manufactures 10 foreign nations.
The greater these are. II they
are only sold at a price sufficient 10 pay
the cost of production and a profit there
OH, anu HTt Itt1 lOfr tHt iiipit prosperous
the selling nation may be expected to
become. But TO secure this end they must
be paid for. Now what IL the means
by which they are paid for? 1t must
necessarily be by the import into the
selling country Of goods, produce. or
money from the buying country. In no
other way can the sellers get back the
value of the goods sold. This principle
has been laid down by every political
economist, and notably by Mr.. Say, the
great French political economist. These
authorities also agree In the principle
that II is better for the exporting nation
to be paid for Its exports in goods and
produce rather than in money, and this
Is founded In good reason. III only money
il returned no profit can be made In ham
ding ii, but II goods are returned they
are always such as the importer 10 whom
their value was due believes he can sell
In the importing country for more than
what he gave for them in the way of ex-
ports, and he therefore makes profit
on both sides of his transaction. He sells
(exports) goods or produce for more than
they cost him. and he Is paid for these In
goods which he again sells for more than
they cost him II this be true exposi-
ton Of the export and import trade OF a
nation. as / believe 1t to be. then II the
imports be less than the exports
these exports are not being paid
for unless the import OF gold and silver
in addition is sufficient to make up the
difference in the value between the ex-
ports and imports OF goods and produce.
II this be not so then the difference be-
tween the value OF the exports and i'm
ports is simply being paid to the import
ing nation In discharge OF the cost of
carrying the goods and produce to that
nation and OF debts due TO that nation
from the exporting nation, or the balance
Is being invested abroad for the benefit
Of the exporting nation. In the case OF
this country II is well understood that
she does not invest abroad Ohis Is the
case with all young nations). II is also
a recognized fact that having destroyed
our own shipping by our unjust laws
we have to pay the Enslishman for car
rying our goods out OF the country. This.
no doubt. takes large sum out OF the
total exports to discharge 1t every year.
Again, this country owes millions every
year for interest on national. State, mu-
nicipal, and other bonds to Engishmen
and foreigners. This debt has to be dis
charged out OF either exports OF goods
and produce or exports OF gold and sill
YER SO long as the price OF goods and
produce is so low that 1t pays the Eng
lishman ana foreigner to handle them
he prefers TO take goods and produce.
because thereby he pays not only the in
terest due TO him. but also gets profit
on the handling Of the goods. This, no
doubt. is the reason why goods and pro-
duce are now being so largely
taken. When these rise In price
gold will be demanded and must be
sent. Does consideration OF this view