The herald., 1897-12-20
TRADE WITH ENGLAND
MORE THAN TWICE AS MUCH AS
IN 1887
British Imports for the Present Year
Will Exceed Exports to America
by 1915, 1000, 900

A fortnight ago we referred to the ex-
ceeding largeness of our imports espec-
tally from the United States, and to the
relatively small purchases of our goods
by that country. AS the subject Is Of
much Importance we again refer to It,
Were it not that the conditions affect
ing our trade at the present time are
quite abnormal some alarm would be
felt lest our prosperity might not In the
near future begin to wane. Our pros
perity depends chiefly upon two things
the credit of our foreign and colonial
customers and our ability to supply
their financial requirements. Now,
were our huge imports and small ex-
ports due to foreign countries having
become so prosperous and self-support-
ing that they no longer required our
goods or our money, it would be appar-
ent that our commercial supremacy and
prosperity would be seriously threat
ened
Under those circumstances our small
exports would mean loss of markets,
while our great imports would indicate
that foreign countries were able to re-
pay money they had previously bor-
rowed, and required no more. But such
is not the meaning of our trade figures,
which show (the last two months re-
suits being estimatedD that for 1897 our
imports have exceeded our exports and
re-exports by the sum of no less than
G163, 900, 900. This is the largest lad
verse" balance we have ever witnessed,
and is twice as arge as that of ten years
ago, when our imports exceeded our ex-
ports and re-exports by only 9S1,0O0,0O0
The reason why our exports are small
and imports large is that the credit of
our foreign customers is not so good
as it was a few years ago; that we are
more anxious to call money in from
them than to lend fresh amounts, and
that consequently they have not the
means wherewith to buy our goods in
increased quantities. at the same time
they are compelled to send larger
amounts Of goods to US in order to full
fill their obligations. A glance at the
position of the United States and of
other countries proves this interpreta-
ton of our small exports and large i'm
ports to be the correct one.
AS we have said, in 1887 the balance
Of our imports over our exports and re-
exports was only RS1,00O,O00. In that
year our imports from the United States
were worth 2S3.00O, 900, while our total
exports thither reached G41,000, 900, i'm
ports exceeding exports by R42,000,O00
only. In 1897 the balance Of our imports
over our total exports may reach 4163,-
900, 900, or twice what 1t was in 1887. In
the present year the United States will
have sent us goods to the value of G115,-
900, ,0OO and will have bought from us
goods of the value Of only 935, ,000, 900,
our imports from that country alone
thus exceeding our exports thither by
so OOO, 900.
But the reason for the great disparity
between 1887 and 1897 will be apparent.
In 1887 the credit of the United States
was of the best, and we were glad to
lend them all the money they were will
ing to take from us for developing their
railways, their agricultural and their
industries. Hence they were exceeding
ly prosperous, and could not only meet
all their liabilities, but could spend a
large sum of money in purchasing our
goods. In 1897 the credit Of the country
Is suffering, owing to the fears that it
may lose the gold standard, and that it's
foreign creditors may not be able to
obtain payment of their debts in gold.
We are thus naturally anxious to with
draw our capital from the country.
Consequently the United States have
been compelled to send us huge quanti-
ties of produce to meet their obligations,
and in spite of their large harvests have
as yet been unable to increase their pur-
chase Of our goods to any appreciable
extent, which they would undoubtedly
have done had their credit been good.
To show what an enormous amount of
produce the United States have had to
send to this country during the past few
years, and how relatively little of our
manufactures they have been able to
buy, we contrast below our imports from
and exports of British and foreign and
colonial goods to the United States, with
the balance of imports over exports,
during the past eleven years. The fig
ures for 1897 are estimated:
TRADE WITH THE UNITED STATES
Balance of
Imports Over
Imports. Exports. Exports