The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-11-22
REVOLUTION IN FOREIGN TRADE.

The report of the Bureau Of Statistics for
the month of October and for the ten
months of the calendar year ending with
October shows that the financial position
of the United States is excellent beyond
precedent. The imports for October, includ-
ing silver bullion, were valued at S54 9O6, 600
An increase of 81, 10000 over October, 1891;
the exports were worth $123, 19S OO0-an in
crease of 81, 957, 900 over the October of the
previous year. Thus the excess of the ex-
ports Of merchandise over imports was $685.
$4,000, little more than during the years
1896 and 1897 During the ten months of the
present calendar year our imports have
been worth $527. 600 and our exports $751;
$4,000, which makes the excess of the mer-
chandise we have sold $3.50 2O7, 900 over that
we have purchased. This is an enormous
excess and is without parallel in the foreign
trade of any country. For the correspond
ing ten months of 1897 the excess of ex-
ports was 1919, S,0OO and for 1896 $780, 023 OOO
This means that during the first ten calen-
dar months Of the years 1896, 1897 and 1898
we have sold in the markets of the outside
world $9S6,47S0O0 more than we purchased.
From this large balance in our favor must
be deducted the return of American securi-
ties, tourists expenses, freightage paid to
foreign ships and the $129. $4,000 of foreign
gold sent to US during the last ten months.
Still, there is yet a large and a growing
balance due us in Europe in the shape of
call loans. 1t is not possible that the pres
ent rate of excess of exports can continue
for long time. The conditions of trade
will change, more food will be raised at
home, or other countries will furnish part
OF the quantity required. Indeed, if the
present excess should continue we would, in
a few years, exhaust the worlds supply of
gold or bring back to US our approaching
securities. Still, there is every reason to
believe that there will continue to be a
trade balance in our favor sufficient to give
us a commanding position in the world of
finance and to place the United States in the
list Of creditor rather than debtor nations.
Such being the condition and the probable
ity, Congress should see that our currency
is being so saturated with gold that it will
cause no contraction to gradually replace
the greenbacks with gold and to make all
bank notes redeemable in gold or it's equiv
alent. In addition to the favorable balance
of trade to make this work easy the rapidly
increasing stock of gold from the mines
is an aid.
The change which has come to the United
States in it's foreign trade presents a
marked contrast to that which has pre- allied
during the greater part of our existence as
a nation. From 1916 to 1876 the balance of
trade was in favor of the United States but
four years. During that period 1t took all
the gold of the California mines and millions
of railroad and other securities to balance
the books. We were, in fact, e. debtor ma
ton. After the war, under the influence of
the protective tariff, the home demand for
manufactured goods began to be supplied
by home producers, which kept millions at
home which had been sent abroad. Since
1861 the balance of trade has been against
us but four yedrs-due chiefly to the fact
that Europe must have our food, cotton
and other articles, while we have purchased
less abroad and more in the home markets.
But there has been nothing like the excess
Of our exports of merchandise the past
three years. The balance of trade this call
endar year will be greater than the value
of our entire export of merchandise any
year prior to 1873.