The herald., 1898-12-14
NATIONAL TRADE AND OPPOR-
TUNITIES FOR EXTENSION
ALESSON REINSURANCE RATES
What It Costs for Insurance in New
York-December Interest-Fi-
nancial Notes-Realty
OFFICE OF THE HERALD,


Discussing current financial and CONNER
cial conditions, and especially considering
international trade relationships, Mr.. James
II. Keene said recently to a representative
of the New York Times:
''To my mind, the foreign trade of the
United States is the fundamental factor in
the present situation. Most people have
apparently not yet appreciated its signih-
cance. The government figures of foreign
trade show
Excess of exports year ending
June 80. 1896 .....................S S5,997s ss3
Excess of exports year ending -
June 30, 97..................... 26o,6Zl, III
Excess of exports year ending
JuEe ~, lS9S. 9S...................... 6lo, 2oo,lZ4
Total for three years.........$ .$so6. s7S, 2l9
Excess of exports July to Oct.
81, 1898. four months. ............ .Sl65, 799 SS4
"Here is an addition of over 81 000, ,000, 900
to the wealth of the country from surplus
products in little over three years. There
is a persistent and importunate demand for
our grain, provisions, cotton and manufac-
tured products, which insures for the fiscal
year ending June 30 next another large ex-
cess of exports. The total gain to the coun
try in four years will probably be in excess
OF the enormous sum of 81 100000,
"The trade statement of the three pre-
CeuiHb years Is sioNluS tHt
gradual growth of foreign trade:
Year ending June 50, 1S93 excess
Year ending June 80, 1884, excess
OF exports NEUTRALITY-SUSPICIOUS.. 23f, l4o91O
Year ending June 49, 1886, excess
Ol exports ......................'. bf,Vo,toS
These net sales of surplus products have
to be paid for in some form Foreign na-
tions did not have 81, 600 100000 gold to re-
init, but they sent us some gold and some
securities. Today they owe us in various
forms large amounts of money in the shape
of various liabilities, as, for example, ex
change, the collection of which has been de-
ferred. This debt, moreover, will grow
instead of decreasing. We have not de-
mandcd money due us by foreign nations, be
cause of the fear of disturbing monetary
affairs in England, Germany, France, etc,
and because it pays us to leave it at inter
est.
"A gratifying feature of our foreign trade
is in the growth in exports of manufactures
In eighteen years these have nearly tTebled
Last year they were nearly $500, ,000,0
There is every prospect that this growth
will continue. We have imported fewer
manufactured goods because we have learned
how to make our own, and with improved
machinery, abundance of raw material and
skilled and well fed workmen, we compete
with the world in manufactures as never be-
fore. The opening of Chinese and other
eastern markets will furnish new and al
most unlimited opportunities,
1T is this enormous debt of foreign ma
tions to us which has made money SO easy
throughout the country, flooded the west
with capital, filled western banks to reple-
tion, and brought western men in large num-
bers to invest in our securities.
Hardly one man in a thousand in the
United States realizes this change. The
power of Sl,500, 900 increased wealth no
one can controyert. The figures are SO stu
pendous and the logic is so irresistible that
the student stands aghast Few have ever
seen these figures grouped in this form, and
even the financial writer's of the press, clev-
err and able as they are, have not seemed
to grasp their magnitude and the irresistible
investment and speculative momentum they
have unquestionably exercised. 1t must
also be remembered that while this increased
wealth is from exports only, the country
itself has grown richer in even greater pro-
portion. There has been nothing like this
foreign trade statement in the history of the
commerce of any country.
AS to the material exhibit of wealth, the
United States treasury's monthly report
shows that in five years, to the first of the
present month, the visible supply of gold
coin has increased 5000, l5S, ,543, gold bullion
has increased $790l4, ,062-in all 1901 ,l72 665, J
of which Sl64000,O00 has gone into circula-
tion and the balance is in the United States
treasury. The currency Of the country has
been inflated by this large amount and the
initiation is all gold.
"The only conclusion l can reach from
these facts is that higher level of prices
for our securities is inevitable"