The herald., 1897-11-02
OFFICE OF THE HERALD.

OFFICE OF THE HERALD.
LOS ANGELES, Nov. l. 1897
The Economist, which is a conservative
and trustworthy financial journal. reviews
in It's latest issue to hand the notable his
tory of the past two years of the export
end import trade of the United States.
The excess of exports of merchandise
over imports for September, says this au-
thority. is one of the largest in our his
tory. The balance Of exports Of merchan-
disc and silver over imports of merchan-
disc and silver is $50, .543. The aggregate
Of exports Of merchandise and silver is a
large one, amounting to $1o6. 391 .5e1. but is
not up to the maximum, which was scored
in December, 1896. when the aggregate Of
these items was $121. .12l.O63. But of the
greatest interest is the tremendous aggre-
gate of the balance In our favor during
the two years ending with last month. In
that period the balance of trade was in
our favor constantly, with the exception
OF the months April, May and June 1897
During that time We piled up an excess
OF merchandise exports over merchandise
imports to the amount of $54S, ,204. .610. Dur
Ing the same period we exported $122, ,022
in silver and imported $50 5O6, ,263 in the form
Of silver ore, leaving balance in silver on
the export side of $61. .5SS. .759 which, added
to the balance of what is called merchan-
disc. makes total in our favor of $609,-
7SS,369. This is fact which would be as
founding and almost beyond belief to any
body who has not followed the course of
these statistics. and Is certainly without
precedent in the history of commercial
trade. 1t is an average balance of trade
IN our favor amounting to over $25. 0O0. 900
per month. Assuming that 1t takes $780,
000, 900 per year to pay interest on our debts
abroad, transportation, insurance and the
expenses of travellers and also to meet un-
LIBERALIZATION in our imports there is a
balance left In our favor of over 5000, 000, 900
for the two years. This has not been paid
with gold. for while our imports of gold
during that period were 1925. III, AT, our ex-
ports were s122 304, ,SO3, leaving a balance
Of less than $30O0.000 on the import SIDE
If. then. we are to presume that the bal
ance has been liqudated, 1t has been
done with securities sold by foreigners to
our people. 1t is entirely conceivable that
$500. 900, 900 Of securities have been returned
to us, but 1t is believed from other evil
dences that there is still quite a balance
which will no doubt be increased by eX-
ports OF our products In the next few
months. We may conclude, then. that
unless another heavy movement of secu-
rites this way starts up. gold will be used
to settle this account. At the moment
1t appears that more securities are being
sold to foreigners than are being bought
from them.
John Farson of the banking house of
resolution in the Illinois Bankers associa-
tion's meeting at Peoria, Oct 49, urging
the establishment of postal savings banks
by the national government. The resolu-
tions recited that the number of savings
banks in the United States, especially in
the west and south, was not sufficient to
meet the needs of persons of small means
for safe places of deposit for their small
accumulations. They declared that the
establishment of postal savings banks
would tend to the greater stability of the
government, by giving to those of small
means a more personal interest in its we'll
being. and would promote the welfare of
the country by encouraging among the
people habits of thrift and economy.
1t was. therefore, suggested that the
give its endorsement to the
movement among the people looking to
the establishment Of postal savings banks;
provided that the system be carefully safe
guarded SO as to protect both the nation
and the depositors, and provided, further.
that the limitation on the amount that may
be deposited by any one person be such
as to prevent unnecessary interference
with the business of private bankers. The
bankers from Chicago were all apparently
in favor of the resolution; however. a
number of cautious bankers from other
cities of the state burned them, though
friends Of the movement were not lacking
among the small bankers. The opposition
seemed to be based on a fear that postal
savings banks would take some deposit
ors from the banks run for private gain.
On the other hand It was urged by friendly
bankers that the government banks would
assist the banking business by making
all banks more safely conservative and by
increasing largely the number of bank
depositors. all of whom would begin in a
small way and would in many instances
grow out OF the restricted limits of gov
ernment banks within few years.
+
The number of standard silver dollars
In the country has been increased nearly
e15. .000. 900 during the past twelve months,
as the following comparison shows
October ], 1897 1852, ,09S, 1872
October !, 1885,. ................... 437, ,2O2 141
increase ........................ VA. .Sa1 ,651
The amount of silver certificates issued
against deposits of silver dollars (theoret-
ically as leasD for the same dates were
rs follows:
October l, 1897 ..................$ 1886 152, ,5o4
october !, 1876 ................... 1854 476, 504
AiiSAC C0So '%ZUOiO ,UUU
The amount of these dollars in the treas
ury and the amount Of silver certificates
on the same dates are as fol-
lows:
Dollars. Certificates.
October /, 1897. .... 1894 94SO O22 1874 62O, ,299
October /, 1896. ..... $50. $685. 1868 S54 4S1. .474
Increase .259.O5s $40, 1856. .s25
= = =
Tho Railroad Gazette estimates that to