The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1897-02-25

The trade balances In favor Of the United
states as reported By the treasury depart
s1ent from month to month are beyond al
precedent. In The past five months. ac-
eordiag To these reports. the excess OF ex-
ports over imports has reached the eslor-
rssou. figures OF ta52 eoo. 90. After making
the largest allowances for the payment OF
interest on American securities held
abroad. these figures would apparently in
dictate that the United States Il accunulat-
ing an enormous balance In tia favor
abroad. and that any time when the de-
Inand for money increases IN this country
gold imports TO an enormous amount
could be looked Tor.
Accepting the figures as correct, there
seems no theory to explain why these
heavy gold imports have not occurred, ex-
espt thu plausible one that American tn
debtsdness abroad Is being paid OF IN
largo amounts. and that American securi-
ties formerly he'd abroad are now passing
into tho hands OF American investors.
There - one reason why 1t Is more
taan possible that ths figures are not cor
rect. and that the enormous balances In
favor OF this country shown by the treas
ury reports ara more apparent than real.
The fgures as TO the value of mercantile
imports arc those furnished by ths Gus
tom house. and are based upon the APP
praised value OF the goods as given by the
importer. Under the Inherently vicious ad
valorem system. which - the marked fes-
turs Of the present tariff law. there Is
marked tendency on the part OF importers
to underyaius their goods. With import
duties levied on the basis OF a certain per-
eentage upon valuation II the goods are
undervaiued by tho importer there Is. of
course, a saving In duty In proportion 10
the differentiation.
Frauds In underv aiuation ara known 10
have been practiced to an alarming ex-
tent. One official OF the treasury depart
ment estimates tho annual loss Of revenue
10 the government from this source at not
lezs than g.. go 90 annually Accepting
the average rate OF duty upon imports at
30 per eeat al vaiorem. aud the duties
Will average that amount approximately,
ports 70 the amount OF 81. noo. 600 annually.
In other words, the actual amount of I'm
ports was fully So eDo.eao more than the
treasury reports would show.
or course ths estimate OF the treasury
officials as 10 the amount OF loss OF RIVE
nue. from undervaiaatlon Is largely a mat
ter OF guess work. The amount may have
been less or 1t may have been many times
greater than that given.
But even admitting thar the figures as
20 imports are erroneous from this cause.
stilI the balance % trade IS enormously
In favor OF the United States. and ac-
oordiug TO trade reports there Is prospects,
Of II becoming stlR greater. Tie recent
contracts made for the nTst time Tor the
shipment OF American rails 70 European
countries wiz contributs somewhat 10 this
American debts - Europe have been
steadily growing leSs Cor sOme years. ow-
Ing 20 tho Discrimination OF European In
vsstors 10 invest In this oountry. and a
growing inclination on their part 70 put
their money more and more into home en-
tsrprisSS. and 90 withdraw such invest
rnsnts as they have already made. Il IS
poasiSls that more debts have bcos paid
or In recent months than aver before.
waioa would account In a measure Tor TIRE
failure % gosd impor,s 10 follow upon ,he
heavy balances shown Ia favor or tbis
country,
Whistler ths balance IN our favor repre-
s~nis tangible money which can - drawn
upon to meet any demands which may
arise with the revival - business IN this
country. or whether e represents TIE pay
Snars Of debts due Ahrcaa. It Is certainty
very healthy symptom Tor tals country.
for Il shows that thu objective income %
the country IN its 3eaHnws VIA foreign
nations = greater than IS outso.