New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-03-29
RTNNTNG INTO DEBT.

rnr more than fifty years there have been
ncorlc IN this country who have scoifcd ut the
iJo, lin. the cOrntry could ever buy foreign
goods enough TO get into trouble The "m"r'an-
file theory" they said. was cXp0d"d-as II thit
haI ANYTHING - do with the question. 1t was
IN everlasting law. they asserted. that 30 natioh
comb buy any more than it could pay for. ana
foreign commerce was nothing but IN exchange
of commodities These were fine fr'"-ir3tc
theories. and were taught by college professors
who knew nothing except what they had found
i'm British text books. and who were too pro
family Ignorant of the world around them To
look at weekly or yearly Statistics In spite OF
these fine theories. the country ran itself mo
bonkruntcy by buying in the years lS'O'' about
S33j. 600 OOO more than the value OF ID" produc'S
sent abroad and again in the years lS'f-'' d!
h,,ying 81 OiG OoO000 more than the value OF
nr,I,.;s sent abroad. Enormous debts were
created which mortgagod The earnings 81 the
country every year. and which. after mich re-
p,rliation aud many scalings and r',rGlniZl-
lions. still leave us with over $J0,O00,OOO year
10 pay abroad rs interest.
How did il all come to pass? OF course Inc
individuals who bought The goods were in most
cases able to pay and did pay for them. Inc
importcrS. neither knowing caring whether
thc country was buying more than il could pay
for. knew that they could pay, and could fnd
a market for the goods imported with tho we'll
| to-lo people who wanted to wear fancy foreign
products These people in turn pad WIN
checks on their banks, and The banks in turn
paid. when the excess of Imports over exports
hor;lmr too large. with bills drawn against
State county. city and railroad bonds SOLD
abroad Europe lending hundreds OF NM
ions and taking /" mortgag" on III" u mica
STATES Every ounce Of that fact Is worth more
than Il million tons of Frcc-Trldc theory
:, now. If foreign goods are offered here az
priccs which the luXury-oving or w'n-toio con
slider attractive, they neither Know nor care
whether the country rs a Who'll" i srhdlh-
abroad enough 10 pay for goods which II I'M
norris Neither does the importer. in most cases
4 nero agent for foreign concerns know nor
care The importer is paid through the banks
hy the p,Ircha Sers and he pays through plIlS
Of exchange. and meyer asks whether the twr"l'
| or Inmates were paid for with cash or Win
Government bonds shipped abroad But me
| Nation is larger than il was twenty years ago
AMI the credit system i far NOR" d"hcl''N
| organized. and il is not easy now rs II was
then To run into debt for ten conSecutly" years
without meeting any obStac"-and even with
OIL; a suspicion in He minds Of many that now
| debt Is accommodating
| When Europe lends money 10 open mines or
build new mills tho borrowed capital may be-
worth more To ,IS than we pay for IT, But when
| Europe l"ndS money to pay for goods purchased
which people Of our own land used 10 make,
| and would make again but for a Dcmocrliic
| ppllcv that closes mills and mines. N" ease j.
| entirely different The country runs into d"pi,
and mortgages It's property and fu'ur" earnings
| for the purpose Of keeping part Of lis workers
idle and supporting them 10y charity in their
| idloncSs II takes Free Trader and partlc-
| uarlv dull Ere" Trader NJ that. 10 detect any
| thing brnohcont in that performance.
What The Tribune has 10 say about the pres
| on, condition of foreign trade may DO summed
| M I'm a single statement. that exports did not
ray for goods imported IN February. and proc
! ably will not FOR The months MlrchrIuly. inriu-
| sivc. and that The difference. with the amount
| due abrond for interest. undervauliions ana
! freight. over SlO.mOooo per month"; will have
| - be- met bv incrrring more debt or by export
! ing sprri, If we send abroad specie for the
! SGoWoOO0 interest ami the excess Of ncrchah-
! d -. imports I'm half year the Treasury may
/ find itself in trouble. If We get the syndicate
! fo float more thiriy-ycar bonds, and mortgage
! the earnings and the future of the people, our
! children will b. reminded what Democratic
! Administration means every time they pay the
! interest.