The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-07-21
BUT 1T IS FULL OF MEAT FOR THE
FINANCIERS OF THE COUN-
TRY.
HON. A. B. STlCKNEY'S ADDRESS
BEFORE CHAUTAUQUA AS
SEMELY YESTERDAY AFTER
MOO AT MAPLEWOOD.
SUGGESTIONS FOR THOUGHT.
Position of the ACKNOWLEDGEMENTS
the Fifty-ifth Should
Present Il Finance Measure.
Special to the Globe.

Special to the Globe.
WASECA, Mimi, July 20.-This was
Recognition day at the Chautauqua
assembly at M~aplewood. Several
strong papers were read, chief Of
Which was that of Hon. A. B. Stick
ney, president of the Chicago Great
Western railway Company, his SUBJ
ject being "A Programme of National
Finance" The paper was an eXhaus-
tive review of our inances with sug-
gestions for the future. In closing.
Mr.. Stickney announced that he did
not present his paper as a 'panacea
of cOnOmic affairs 1t is as follows:
l Will begin the consideration of my subject
with ! commercial cCnundrum. Since the
beginning of the civil war, we, OF this coun-
Try, have sold TO foreigners merchandise
valued at more than a billion and a half
dollars in excess of what We have bought of
them, and at the same time have run in
debt to foreigners to the enormous amount
of several billions Of dollars. This is the
oonundrum: How has it happened? What
consideration have We received for this indebt-
edness?
There is no way Of ascertaining the exact
amount. but it has been estimated that on
account of the bonds issued by the United
States government by the various states,
counties and cities, by railway and other
corporations, and by bonds and mortgages
issued by individuals, such foreign indebt-
edneSS amounts in the aggregate to the
enormous sum of three or four billions of
dollars. In addition to such Indebtedness,
the people Of foreign lands have acquired title
TO stocks in American corporations and own
ership TO lards. breweries, Touring mills and
other American properties of the aggregate
value of perhaps another half a billion
There is no such uncertainty as to the ex-
ports and imports. All the products of this
country which are sold and exported to for
2s-- - Anl IL ThA rAlpnf Of aiO
nations which are bought and imported, are
entered at the custom houses, where records
are kept.
Such records show that during the thirty
six years, between June 80. 1860, and June
80. 1896, during the time the bulk Of this
enormous Indebtedness was being created,
the people of this country sold and exported
to foreign nations about 81 ,O94. 900, 600 in value,
measured by the gold standard, more mer-
chandise than they purchased and imported,
and in addition, the gold value of silver eX-
ported exceeded the gold value of silver i'm
ported by more than $405, 600, coo.
But. Notwithstanding a balance of trade
IN our favor Of over 81, 400, Co., 900 we have,
in some way, contrived to get in debt. and
have pa ted with the title to property, to-
gether equal in value to the uncomfortable
sum OF four or five billions of dollars.
MONEY AS A CONSIDERATION.
It is the popular notion that the considera-
ton which has been given for the foreign
Indebtedness has been actual money sent over
during the war in payment for the govern
ment bonds, and since, in payment for rail
way and other securities. 1t is a popular
notion that when Englishmen buy American
securities they send over to this country
money in exchange. But this is a notion
which is easily disproved.
II must beu Understood that the only thing
which is money, in International trade, is
gold, and the treasury department also keeps
a record Of all expectations and importationS
of gold. Such records show the astonishing
fact that during the time this Indebtedness
has been accommodating this country, instead
~ RAFTf hT1liOnC ~ NOnnu frnp-r hrn
has exported to foreign lands over 1925, 0O0.-
OCO of gold in excess of the amount it has
received from foreign lands.
Let US state the whole account. During
the thirty-siX years, from June so, 1860, to
June 30. 1896, cur people sold and exported to
foreign nations:
Merchandise in excess of import
(gOld Value) 81, 094, coo, coo
Silver in excess of import gold
vaIue) o.. 4O5, 900, 900
Gold in excess of import ......... rs, OOO,O 0
And in addition have conveyed
to foreigners, corporate stocks,
lands. ETC., Of the estimated
value of say ............... 500, 900, 600
Making a total Of ............ 81, 724, 900, 600
On the face of this account foreign nations
should be indebted to US in the sum of more
than two and a half billion dollars, on which
the interest at, say, 3 per cent, amounting to
S125, 0 1000 annually, should be collected by
in the sum of four or five billions of dol
lars, on which We are paying interest,
amounting to perhaps $3.50, 600, 900 annually.
In other words, the people Of the United
worth of grain, cotton, cattle, etc., for the
purpose of paying interest to the people of
foreign nations, while on the face of the &C
count the people of foreign nations should be
sending us annually $125, 900, coo worth of their
products for the purpose of paying interest
to the people of this country.
The difference between the facts and the
face Of the account is nearly, or quite, $780,
DO0.O per annum against US.
Do you realize what 1915, 900. 900 per annum
means? The total value on the farm of an
average wheat crop Of the whole United
States is less than 1915, $50, Goo. The total value
OF an average corn crop is but little, if any,
more than 1915, 600, 600.
INTERNATIONAL EXCHANGES.
Such is the astounding result Of the full
statement of the international exchanges dur
Ing a period of t~hirty-six years. AS the full
statement gives no explanation to the conun-
drum, let US see If such explanation can be
found IN the details. Let us examine the
popular notion that foreign nations con-
tr1buted large sums of money to the govern
ment during the civil war.
1t VIII be recollected that in order to carry
on the civil war the government issued and
sold about 81 73, 600, 600 Of bonds, and. it is
approximately true that about one-half of
these bonds were sold abroad at about 40 or
% per cent of their par value. This was
about a billion and a half Of this foreign in
debtedness created for the inadequate consid-
Grafton of, say, $500, 900, eco. But how Was the
100000, coo paid? Was it paid in money?
The first Of these bonds were issued in 1852,
and the last in 1866. The treasury d5partm n,
returns show that during the four years Of
the war and the succeeding year of settle
ment Of war accounts, the United States, in
stead OF receiving 1927, GOO, 900 from abroad,
actually exported $45, GOO. &c.,. the excess of
expectation being over $3.50, 900, 900.
The following is the detailed statement by
years: