The Providence news. (Providence [R.I.]) 1891-1906, 1896-08-11
Reason for Prevalent Bust
ness Depression. ~
Millions of Foreign Cash Have
Been Withdrawn.
The Significant Inference Drawn
From Export Figures.

WAsHINoToN, Aug. 11.-Some striking
conclusions regarding the effect OF the
silver agitation In expelling foreign capi-
tai, crippling industry end destroying
the means OF employing labor, drawn
from the statistics OF foreign trado for
the past three years have been practI-
cally completed by the bureau of statis-
tics.
IL appears that the balance OF trade
has cen in favor of the United States,
in accordance with the term, In mer-
chandise, gold and silver. The excess OF
exports, in OF her words, has peen on the
side of the United states, not only in
regard TO merchandise, but in regard to
the precious metals. A total balance of
all classes OF exports has been computed
of 1908, i16, COG, amounting to an annu-
al average for each OF the past three years
Of s2i7, 700, 600.
This IS what the United States have
been compelled to pay abroad because Of
the tendency to Withdraw foreign cap
ital. The excess Of exports of merchan-
disc for the hscal year 1894, was $751;
1i5,950, Tor the fiscal year 1875, s75, $685.
200, and for the fiscal year 1896, s102, S0l,
p23. This makes a total excess OF exports
of merchandise for three years of
sll5,5i6,O73.
Such favorable balance OF trade
ou ght, under ordinary conditions, TO
turn the tide OF the precious metals
toward the United States. Tho fact has
been otherwise. both with silver, watch
is now treRted substantially as merchan-
disc, and with gold, which is the method
OF international settlements. The excess
OF exports OF silver 10 the fiscal year 1894
was s37, 164, 7i3, in 1895 ss7, ,674, 797, and in
1896. t46, 726,3i5, making a total for three
years OF sl2i, 555,s55 The excess OF ex-
ports OF gold was "a, SIS, 942 in 1894, ssO,-
9s4. .449 in 1895 and $50, 0,521, ,2s7 in 1896,
making total of sll6, o34, ,67s. The ex
ports OF gold would probably have been
much larger IN 1895, but for the imports
made by the Morgan bond syndicate.
These three classes of net exports make
total as stated OF 1868, l16,606 or an
average OF s2i7, 10000 for each OF the
three past years.
Careful computations made In New
York year ago showed that the net
foreign debt of the United States on ac-
count OF interest. freight charges, ex-
penditures OF tourists and other pur-
poses, with due allowance for the terms
on the other side, was sI45, 726, 900.
IL would appear, therefore that for each
of the past three years the excess of pay
ments above the normal n OF interest charg-
es has been s72, 900, 900. fhis is part of
the price which the United States has had
to pay for alarming Europe with the
idea that the silver standard might be
adopted in this country. More than this,
tho withdrawal OF the money has been
peculiarly felt because even the interest
charges were not withdrawn In full while
sonidsuce prevailed abioad in the main
tensnce OF the goldstsndard.
In the language OF NJ. Arthur RaBalo-
vich, one OF the most acute and intelli-
gent OF foreign hnanciers "the true in
debtedness of the United States abroad
had been. completely hidde, by the in
fux OF foreign capital" What the ma
tion had to pay In interest on railway
and municipal obligations and industrial
investments had never been felt as
charge upon trade, In consequences of
the compensation which resulted from
the continuous influx of capital placed
here by Europeans.
The Withdrawal of this capital means
so much the less of fund for the en-
ployment of labor and the development
OF domestic industries. There are many
here who believe that II is the one cru
cial cause which during the past three
years has been "placing upon labor's
brow crown Of thorns and crucifying
mankind" for a few pieces OF silver.