The true northerner., 1897-01-20
DOMESTIC EXPORTS.
A GREAT VOLUME DOES NOT MEAN
PROSPERITY.

Under Certain Conditions It May BE the
Opposite-G Goods sold at - Sacrifice Bring
Small Returns why Gold Ha. Been Go
Ing Abroad.
The presidents statement regarding
domestic exports as evidence of the use
fulness Of the present tariff was so mis-
leading as to call for special notice. 1t
must first be perceived that with in
creasing population domestic exports
naturally increase in quantity and faster
than population if the country becomes
relatively more productive and better
able TO corEpete in foreign markets.
Thus from 1860 TO 1870 domestic ex-
ports rose from $40 TO $l2 per capita,
and from 1860 TO 1892 they rose from
SO to $15. GO per capita. But in the fis-
cal year 1896 they were only $12.20 per
capita, and yet the president wishes 1t
TO be believed that the large exports OF
that year are evidence that lower duties
than those OF 1892 are opening TO us
larger foreign demand for our products.
The truth is that in 1896 the country
scarcely did better in that respect than
in 1870 more than quarter of a GEN.
tury ago.
But neither large exports by them
selves nor large imports necessarily mean
prosperity. Heavy imports may be de-
structive of prosperity. Heavy exports
may be merely slaughtering property to
pay debts. Exports of one character
mean increasing and possibly abnormal
foreign demand, while exports Of anoth-
er character mean nothing but prostra-
tion of home industries and inability Of
our own people to consume as much as
usual. With many classes of manufac-
tured products the latter is true, as it is
only when the home demand is unnatu-
rally low and prices here are depressed
that such products are largely forced to
sale in foreign markets and often at a
loss.
The exports are measured in values,
and when prices are unduly depressed
by industrial prostration the magnitude
Of exports in quantities sometimes indi-
Gates the magnitude Of disaster. Thus
in 1891 exports Of 2. 904, 900, 900 pounds
Of cotton brought in &240, 700, 900, and
in 1892 exports Of 2. 1885, 900, 900 pounds
brought in &25S. 900. 900. but In 1895
exports of 8,5l7. 900, 900 pounds brought
in $204, 9nG, 900. There can be no ques-
tion which Of these years brought the
best results to the country and to the
growers. For the last three years about
900, 600, 900 gallons of oil have been ex-
ported each year, but the return in value
has risen from Sal 100000 in 1894 to
$62, 1888, 403 in 1895, the condition Of
foreign markets making better price
obtainable. AS to most of the great sta
Piles, the state Of markets abroad goes
far to determine what quantity this
country can market and whether at
living price or not, and heavy sales
when prices are unnaturally depressed
and sales are forced no more indicate
prosperity than the sheriff's sale Of
bankrupt stock.
It is the fact that nations, like indi-
viduals, customarily sell at sacrifice
when sales are forced TO meet debts.
When this country is buying so largely
of foreign goods that part of its work
ing force is idle, and it is incurring
drain the treasury of gold, and large
loans are required at losing rates, the
fears Of bankers cut down the sum
which can be borrowed to carry any of
the great staples. II failures do not
come, like those in New Orleans con-
nected with cotton operations, there is
always powerful pressure in such con-
ditions to compel sales which depress
prices and invite foreign buying.
This is the state of things which has
existed during much Of the time since
the present tariff was adopted. With
industries so Frustrated and wages SO re-
duced that the people could not consume
as much within 20 per cent as they did
in previous years of prosperity, the re-
ported imports Of foreign goods have
been large, and the fraudulent underval-
uations have been SO great that the
most competent experts judge the actual
value, which the people have to pay,
about $50, 600, 600 year more than the
reported value.
Hence il is in part that 81 09, 900, 900 in
gold and $50. 900, 900 in silver have gone
abroad within the last two fiscal years
under this tariff. although merchandise
| exports have exceeded the nominal
value of imports by $l78, 900, 600. 1t is
not strange that in such conditions low
prices have prevailed and foreigners
have been enabled to buy our staples
practically at their own terms. and at
such terms have bought largely. That
this is not q state of things which they
want continued the people have decided
with emphasis. New York Tribune.