New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1896-01-18
TIE pRECISE CIINE OF TROIBLE.

The Official statement OF foiclEn CONNER" lVl
thc wear lSoJ has just been issued. showing OK
ports of domestic and foreign products amount
ing to SS2i S3G522. and imports amoinlino u
sSOi k2GG3S inyciccd valuation. and IN * ''HS
Of sports amounting to S23,269S'H n the
somc tine the statement shows III c%r">@ "I
gold coin and bullion over imports Of coin bull
ion and ore amounting 10 SiolSuGi' llI ~
excess of silver exports amounting 10 S?o.3l',-
900 Thus tho net experts. with no aloW'nc"
for undcrvalua lions amounted 10 $12f,l ~
II * plain that if this statement is true th"
country paid large debt abroad. besides in
tnrost ON It's bonds hell in other countries. which
amounts 10 about SJOOOOOOO But this does not
ocrount FOR thc continuous outgo Of gold IN De
cemher for in that month. although the excess
Of merchandise exports appeared TO be >'0,''1S-
1lG the net exports Of gold were Sl4.0>;l1'.
and Of silver s3l74551 making in all SlI.Gi6,-
15i; experts over imports in sinGi" month
Since the rates Of exchange continued high not
withstandng this. and gold was going out 10
the ecry end OF the year. il is imposslbl" {" SUP
nose that the official statement covers the Whol"
story.
II is known that largo blocks Of securities, in
Gliding So O0O.0OO Of United States bonds. be-
lrvcd 10 amount TO more than SlOo.ooo.ooo III
all wont abroad during the first six months OF
the year the bonds being largely placed by
operations of the bond syndicate Not all the
I.niteJ States bonds were returned rs nvesti-
coton shows that several blocks Of millions
each still Nnain abroad. hut of other bonds ana
stocks the return during the last six months mas
probably been more than enough To balance
those marketed abroad early in the year Bllt
fine problem would still be utterly insolube, FOR
thcre would be nothing to account for the con
timed and heavy outgO Of gold even to the end
of fine wear if il were not for the great under
valuation of imports. According TO old csti-
,,otcs by David A. Wells and other high authorl-
tics IN the Democratic side. these had for long
limo averaged 10 pes cent Of the value Of i'm
norts but they were without doubt much dimln-
ishcd under the Republican tariff of 1890. Be
vond oucstion, also they have been greatly in
cr,osod under the act Of 1894 with It's many
nd yalorcm duties on important classes Of arti-
c,es. SO that the AUTHORIZATIONS are doubtless
larger than ever. though no means exist Of de-
tcrmining definitely how much larger they are.
If they average 10 per cent. as in old times. that
would amount 10 $50 162 .6Gi. but with interest
duc abroad would not suffice to account for the
norris when the movement Of securities during
the first half Of the year is taken into account.
No exclamation Is possible except that the I'M
dnrvaluatons averaged more than 10 per cent,
and probably more than IL per cent of all I'M
ports.
This would mean that the actual value of
merrhandlsc imported during the year 1880 was
ot least Sg22. 100000, instead Of $S0l ,G2Gooo, as
shown by the fraudulent invoices in foreign
ports III that ease the true account for the
current year would read in substance thus: En-
ports Of merchandise. N24s96.522; excess of
exports over imports Of gold and silver. S10J,-
9Oi:,lJ: total exports, S92J.SOl.OGI. against
merchandise imported amounting TO something
over $500 100000 As the total movement Of
securities during the year has probably shown
some excess of shipments TO this side owing TO
the large movement late in the year, it is prob
able. that the years transactions did not. on the
whole much increase the Nations foreign debt
abroad. which. however. was indisputably large
at the beginning If the year. rs the rapid outgo
Of gold al that time proved.
It is not possible to explain commercial or
exchange movements in any othcr way. The
whole attcmp; 10 account for withdrawals Of
gold from This country OH the theory of foreign
Jstrust Of our currcnry is absolutely defeat ted r
the ready ana heavy purchases of Goycrnmcn,
coin bonds mnde ns; spring. and again pro-
posed at this very time with frcr-coirasr bill
cxpcctrl H. pass the Senate. The apprehension
Of forccn Investors has not been that tAr Nj
ton world fail 10 meet its ob-aions rs a
Nation. hut That the country would awAmp it,. n
and prc.trnte It's Industries. ~ t dld prior 10
1851 and again prior f. 1872. 10y encouraging
excessive purchase, of f'srirn goods, largely be
yond the paying power Of the country. Cold
goes ont because a low ana frlud-cncouyaglng
tariff brings In enormous quantities Of foreign