Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1895-04-01
PRESS COMMENTS.
Running Into Debt.
IN Y. Tribune.)

IN Y. Tribune.)
For more than fifty years there have
been people in this country who have
scoffed at the idea that the country
could ever buy foreign goods enough to
get into trouble. The mercantile
theory" they said, was exploded-as i!
that had anything to do with the question.
1t was an everlasting law, they asserted,
that no nation could buy any more than
it could pay for, and foreign commerce
was nothing but an exchange of commo-
dities. These were fine free trade theor-
les, and were taught by college professors.
| who knew nothing except what they had
found in British text books, and who were
zoo profoundly ignorant of the world
around them to look at weekly or yearly
statistics. In spite of these fine theories,
the country ran itself into bankruptcy by
buying in the years 1S50.57 about 1896,
900, 900 more than the value of the pro-
ducts sent abroad, and again in the years
1S64-73 by buying *1,046, 600. coo more
than the value of products sent abroad.
Enormous debts were created, which
III ortgaged the earnings of the country
every year, and which, after much repu-
diation and many scalings and reorganiza-
lions, still leave us with over $50 900, 600
a year to pay abroad as interest.
How did it all come to pass? OF course
the individuals who bought the goods
were in most cases able to pay and did pay
for them. The importers, neither know
ing nor caring whether the country was
buying more than it could pay for, knew
that they could pay, and could find mar
ket for the goods imported with the we'll
to do people who wanted to wear fancy
foreign products. These people in turn
paid with checks on their banks, and the
banks in turn paid, when the excess OF
imports over exports became too large,
| with bills drawn against state, county,
city and railroad bonds sold abroad.
| Europe was lending hundreds of millions,
| and taking mortgage on the United
States Every ounce of that fact is worth
more than million tons Of free trade
| theory.
So now, il foreign goods are offered
| here at prices which the luxury loving OF
well-to-do consider attractive they neither
know nor care whether the country as a
whole is sending abroad enough to pay for
goods which it imports. Neither does the
| importer, in most cases a mere agent fol-
| foreign concerns, know nor care. The
| importer is paid Thorough the banks by the
purchasers, and he pays through bills of
| exchange, and never asks whether the
| tweeds or tinplates were paid for with
cash or with government bonds shipped
abroad. But the nation is larger than it
was twenty years ago. and the credit sys-
| tenn is far more delicately organized, and
| it is not easy now, as it was then, to run
| into debt for ten consecutive years with
out meeting any obstacle-and oven with
out suspicion in the minds of many that
new debt is accommodating.
When Europe lends money to open
mines or build new mills the borrowed
capital may be worth more to us than we
pay for it. But when Europe lends money
to pay for goods purchased which people
of our own land used to make, and would
make again but for Democratic policy
that closes mills and mines the case is
entirely different. The country runs into
debt, and mortgages its property and flu
ture earnings for the purpose of keeping
part of it's workers idle and supporting
them by charity in their idleness. 1t
takes a free trader, and particularly
dull free trader at that, to detect anything
benefcent in that performance.
What the Tribune has to say about the
present condition of foreign trade may be
summed up in single statement, that
exports did not pay for goods imported in
February, and probably will not for the
months March-July, inclusive, and that
the difference, with the amount due
abroad for interest, under valuations and
freight, over $40, 600, 900 per month, will
have to be met by mourning more debt or
by exporting specie. If we send abroad
specie for the $50, 000 90 interest and the
excess of merchandise imports in half
year, the treasury may find Itself in trou-
BILE. If we get the syndicate to float more
thirty year bonds, and mortgage the earn
ings and the future of the people, our
children will be reminded what Demo
cratic administration means every time
they pay the interest.
The Reply to Minister Barrios.