Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1895-04-04
Rnnnine Into Deli.

For more than 80 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 if 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 Gx-
change of commodities. Those were fine
free trade theories, and were taught hy
college professors, who knew nothing ex.
cent what they had found in British text
books, and who were too 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
| lS50-57 about 1885. 900, 600 more than the
value of the products sent abroad, and
again in the years 1S64-13 by buying ., 04o-
600 900 more than the value of products
sent abroad. Enormous debts We're Gre
ated, which mortgaged the earnings of the
country every year. and which, after much
reputation and many scalings and reor-
CARNATIONS, still leave us with over
s5O, OOO 900 year to pay abroad as interest.
the individuals who bought the goods
were in most cases able to pay and did
pay for them. The importers, neither
knowing nor caring whether the coun-
try was buying more than it could pay
for, knew that they could pay. and could
find market for the goods imported
with the well-to-do people who wanted to
wear fancy foreign products. These people
with h,Y
and the banks in turn paid, when the ex-
cess of imports lover 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 if foreign goods are offered here
at prices which the luxury-loving or we'll
TODD 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
for foreign concerns, know nor care The
importer is paid through the banks by the
purchasers, and he pays through bills of
twceds or tinplates were paid for with
cash or with government bonds shipped
abroad. But the nation is larger than it
was 20 years ago and the credit system is
far moro delicately organized, and it is not
easy now, as it was then, to run into debt
for 10 consecutive years without meeting
any obstaclc-and even without suspi-
cion 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 England lends
money to pay for goods purchased which
people of our own land used to make,
and would make again but for Demo-
cratic policy that closes mills and mines,
the case is entirely different. The coun-
try runs into debt and mortgages its prop
erty and future earnings for the purpose
of coping part of its workers idle and
supporting them by charity in their idle
ness. 1t takes Il free trader, and a particu-
larly dull free trader at that, to detect any
thing 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-JCly, inclusive, and that
the difference, with the amount due
abroad for interest. undervaluations and
freight, over slo,O0OO0O per month. will
have to be met by mourning more debt or
by exporting specie If we send abroad
specie for the s5u. 900, 600 interest and the
excess of merchandise imports in a half
year the treasury may find itself in
trouble. II we get the syndicate to float
more 3O-year bonds, and mortgage the
earnings and the future of the people, our
children will be reminded what Il Demo.
cratic administration means every time
they pay the interest New York