The Dalles times-mountaineer. [volume] (The Dalles, Or.) 1882-1904, 1898-12-31
lHE BANKER FOR THE WORLD


There are seers who predict Uncle
Sam will become the banker for the
world, says an exchange. Two old
world governments, Russia and Japan.
have turned their faces to the United
States in search of loans. Russia at
least has had agents sound American
q fnanciers. This is the first time for
eiga nations have sought to float great
national loans in America, and the
wise men think it is the beginning of
the new era. These seers may be far
in advance OF their time, but their be-
Y lief is not altogether fantastic. The
United States is travelling a tremen
dous pace in it's accumulation of wealth.
There has been nothing like it IN its
own previous career, and it may be
doubted if history can rival its record.
The treasury department. has pro-
gressed so far in its compilation of
statistics for the year as to make it
possible to closely approximate the re-
sllts for 1898.
The bureau of statistics says the ex-
ports of merchandise for the year will
reach the enormous total of 81 ,250, ,000,-
600, while the imports will not exceed
$640, 900. 900. Here, then, Is balance
of trade In favor of the United States
of about $610. 0.0OO,0 600 in a single year.
In other words. foreign nations owe
the people of the United States $780,
900 as the result of the years trad
ing. Great Britain has already paid
off part of her indebtedness with the
freight charges for Carrying the
American goods in British ships. and
those charges have been estimated as
high as s1O0,00O,O0O. Germany has
helped to readjust the international
account by returning to the United
Strtes large quantities of railroad
stocks and bonds, and Uncle Sam has
had to cancel part of his claim against
Europe to meet the interests and divi
dends due on American securities held
on the other side of the Atlantic, but
there is no way of determining the
amounts involved in these transactions
Travelling Americans scatter many
golden eagles in the old world every
year, and they have eaten into Uncle
Sans European balance for an amount
estimated from 0,0O0. 900 upward.
In spite OF these drains on the ac-
count there is an enormous balance
yet to be settled by the shipment of
gold from the old world to the new.
During the first eleven months of the
year the Imports of gold aggregated
$l49, 1896, 600 and the exports to $14 .975,-
600. leaving the net imports about
S135, 100000. This amount has in
creased since last month, and for the
year it will reach S140. .O00, 900 or more.
But Europe, Asia, Africa, South
America, Mexico and Canada have not |
paid Uncle Sam all they owe him.
There is large balance still unpaid,
and only awaiting the right conditions
to force it to the United States. A |
year ago it was estimated that the
United States had balance of $780,
0O0, 600 to 800, ,OOO, 900 in Europe, and |
it is supposed the amount has been ia
creased. This money is left in the old |
world because it can earn higher |
rate there than inSthe United States.
In Germany it commands as much as |
per cents, while call loans are being |
made in New York as low as II per |
cent and time loans at 8 per cent. The |
great banks of Europe have been |
forced to advance their discount rates |
to prevent such flow of gold to |
America as would embarass foreign |
money centers.
The effect of these trade operations
in connectionfwith the domestic pro-
{ duction of gold is reflected in the gold
circulation. The treasury department
reports ths this amounted to 1858, ,000.-
600 the first of this month as against
$544, ,000, 900 a.year before and $456, ,000,-
600 July l, 1895, showing a gain of more
than 5000. O.000, 900 in the gold stock Of
the country in two years and half. |
The total money in circulation De-
cember 1, was 81, 1897 200. 600, against
1910, ,O0O, 600 July l, 1896, gain of
S377, ,000,0 900. To show the full gain
considerable part of the balance still
in Europe, if not all of it, should be
added to the foregoing figures. AL
though there has been trade balance
in favor of the United States every
year for ten years past, the tide of gold
did not turn toward America until 1896.
The trade balances previous were
not only eaten up, but Uncle
Sam had to send gold to Europe to
square his accounts. In 1894 he sent
81, 4,0O0,0 900 net, and in 1895 $40, ,00O, 900
net. In 1895 the net imports of gold
were SAG, 900, 900, but in 1897 there was
net export of s25O.OOO. There have
therefore been but two years since
1887 in which the imports of gold have
exceeded the exports.
The optimists who think, the United
States will become the money center
of the world, believe this country will
continue to drain all other lands of
gold. The industries of the United
States have reached such stage that
the imports for 1898 are below those of
any year since 1885, when the popuIa-
tion was much smaller. On the other
hand, American manufactures have
been so greatly increased and are
likely to show larger. volume
each year in the future. This enor-
NOUS trade movementin favor of the
United States is not an affair of
single year, for the exports in 1895 and
again in 1897 pressed the billion dollar
mark. The trade balance in favor of
this country in 1896 was 1924, ,00O, 900
and in 1897 1857 100000. This tre-
mendous tide has been. running for
three years, and the combined balan-
ces for those years aggregate the sum }
Of 81 ,29O, ,0O0, 900. If that can be done :
In three years following a season of .
hard times, what may be accomplished
luring the next ten years while the
new commercial field among 100000.
700 people in the Orient opened to .
commerce and ingenuity? .
= CHRLSTMAS.