The Providence news. (Providence [R.I.]) 1891-1906, 1896-08-04
A Prediction Made by a
Sound Money Man.
The "Balance of Trade" and
What the Phrase Means.
Why Mexican Dollar Has Only So
Cents Purchasing Power.

"A SOUND money man, Wnetber hepup-
lican or Democrat the Gossiper does
not know, takes very practical and
sensible view of the present Presidential
campaign. He was on the Brook street
car bound downtown last night and to a
friend, who asked him II he didn't think
Bryan would bc elected he answered
promptly, "No, l do not. There is more
wind than substance in this talk about
Bryan. When you get the wind out OF
his boom and get down 10 actual ballots
you will be surprised at the small figure
be will cut. Bryan in order 10 be elected
will have TO have close on to six millions
OF votes and TO my thinking theirs are not
half that number OF Populists, repudia-
tion Democrats and silver Republicans in
this country"
To show upon what basis this gentle
man mado his estimate IL is only neces-
sary 10 refer TO the returns for the last
Presidential election. In that contest
Cleveland received 5,556,slS votes, Har-
rison, 5,lI6.1ts. Weaver, Populist,
1.04l, ,02s; Bidwell, Prohibition, 2f4, 1873;
Wing, Social Labor. .2l.1e4 fle iosel
popular vote. including oil the scattering
was Il, 10, ,636. 1t will be seen that the
Populist candidate received only little
more than one million votes. The gen.
tleman on the car in explaining the
reasons for the faith that was in him said
that by no possibility could the Pop
ulists poll two million votes at the com
ing election, while the votes OF the FREQ
silver Democrats would not reach
higher figure. II ne ia right in his
figuring MIR. Bryan might just as well
shut up shop and give his wife chance
10 do something besides revise his
speeches and coach HIM in cratory.
The question as to whether the balance
of trade is in favor OF the United States
or against II Is one that IL frequently
discussed. A good many people, however,
do not understand clearly just what that
phrase "balaDce of traue" means, and
they are some times at a loss TO compre-
hend articles or arguments that deal with
it. Put In a simple form the question is
reslly.this: Is the value of the products
OF these United States sold TO foreign
countries greater or less than the pro-
ducts OF foreign countries imported by
the United states? IL our exports ex-
ceed in value our imports, the balance OF
trade.is in our favor. II, on the other
hand, our imports exceed In value our
exports, the balance of trade Is against
MS? Now as 10 how the matter actually
STANDS the official reports for the fiscal
year ending June 80, 1896, give pretty
clear explanation. During that year the
total imports into this country from
foreign ports were valued at s776, 669, 2l9;
the total value of the exports in the same
period was 1905, 75l. 099. In the imports
are included S35, LAG, 734 of gold and So
Boz, $40 OF silver; in the exports there
Were S66, l31, 1888 gold and s477, 227, ,3l7
silver. Leaving out these two items
from both sides our imports were valued
at S731, 1863, ,96j, and our exports at S7y3,-
13i. 1888, leaving thus a decent balance in
our favor.
A pertineni inquiry at the present time
10: Why 40 merchants and tradesmen
allow ouIy 90 cents for a Mexican silver
dollar, which has is much and more
sivsr in it than our standard dol
lar which they accept at its face
value OF 100 cents? The fact is that
the Mexican dollar is worth only b3
cents in this country because nobody
beng obliged TO receive 1t in pay
nlent of an obligation. 1t passes current
onIy ut its bullion value. II melted down
the silver II contains is worth ABOUT the
sum mentor Ell. Oar own silver dollar,
though intrlnsically worth about the
same, passes current at valuation of 100
cents because the government stands
ready to exchange gold for IL or paper
thai is as good as gold. III free and un-
lin lied coinsge were TO prevail, neither
the government nor the banks would
furnish gold or iuli value Iapsr money
In exchange for the silver dollar, and 1t
would Instantly sink TO It's bullion value.