The Jasper weekly courier. [volume] (Jasper, Ind.) 1858-1922, 1898-10-21
MONEY AND TRADE.
What IL Done with the balance In
Our Favor I'm Foreign
Countries.

said that last year we exported some
-hing over $1,000. 100000 worth OF com
modities, and imported something over
5000 100000 worth. Practically we
cold twice as much as we bought, leay-
ing a balance of over S60O,000,000 in
our favor. Right upon its face that is
a good showing. The figures are in
fact somewhat dazzling. They are al
most calculated TO make a man think
H.. t be is loaded down with prosperity,
when in plain truth he does not know
where his breakfast is 10 come from.
But the mere statement that there
is an enormous trade balance in our
favor standing by itself, so far from
giving US correct idea OF the situa-
lion. is worse than no statement at
all. for while conveying the belief that
we are riding the boundless waves of
prosperity, an examination of all the
facts may prove that we are travel
ing the road TO ruin. Whether we are
doing so or not ii can easily be demon
strated that trade conditions, taken
in their entirety, are not favorable.
that we are being subjected to enor-
nous and unjust injury, and that If
ruin does not speedily come it is mere
" because our resources are so great
that it will take long time to bleed us
10 death.
As before stated, in round numbers,
we have sold sl2O0.000 900 worth of
commodities. and bought 5000. 100000.
leaving balance of 5000. 200, 900, which,
according to usual business methods
and customs, should have been paid
in cash. Has it been? BY no means.
The total net imports of gold were
only about S14OO00o0, leaving $780,
000, 900 worth of merchandise wholly
unpaid for, so far as the official rec
ords disclose.
In other words, we have apparently
given away merchandise to the value of
$500. 100000. If we include silver. the
showing is still worse. for the exports
exceed the imports s24 100000, adding
that amount to our dead loss, as it
appears TO be. Now comes the ques-
ton: How is 1t that we sold S600000,-
600 more stuff than we have bought
and have only received Sl00,000,00O or
/ less on the balance?
There are two explanations offered.
The first is that the money has been
| left to our credit in Europe, either
for investment or for us TO draw
against as we need it. Common sense
4 forces the rejection Of this explana-
ton at once. 1t is absolutely un-
reasonable TO believe that American
money is seeking investment in Eu-
rope. If left there for that purpose,
II is evidently still seeking" If 1t
had been actually invested Europe
would to-day present a scene Of al.
most unparalleled commercial and in.
dustrial activity. But so far from this
being true every nation in Europe il
complaining of 'hard times" or, al
the best. of dull business.
There is no country in the world
that presents as many opportunities
for development as the United States
and IL we could have commanded than
money we may be sure that il would
have been brought home.
The idea that it is left there lying
idle TO be drawn against" is too alb
surd for serious consideration. The
natural thing would be 10 bring il home
where it can be drawn against even
more conveniently. and invested if pos
sible.
The second explanation is that the
money has been set off against inter
est and other payments. which we have
10 make In Europe.
This is undoubtedly true. and when
intelligently considered il shows in the
most startling manner the significance
Of the money question in its bearing
upon the business interests of the
country.
1t has been frequently stated in the
Bimetallist that the United States has
interest payments TO make in Europe
amounting to not less than S250.o00,00
a year. while freights paid 10 foreign
shipowners and the expenditures OF
American travellers abroad will prob
ably swell the aggregate TO fully $780,
O00. 900. Consequently that we must
sell $500 900, 900 more commodities than
we buy in order to keep even. and not
be compelled TO pay balance in
money.
ne ngureS Win WHICH we dre How
dealing show conclusively that this was
an underestimate rather than an ex.
aggeration. As the balance of trade
in our favor on merchandise account
was over 5000. 900 ,0O0 and we have only
received SIoo,ooo.o0o in money, it fol.
lows mathematically that the foreign
demand against us must be in the
neighborhood of s500,0o0o00 year.
AZ every well-informed person
knows, during the last year the con.
ditions of trade as regards balances
have been altogether abnormal, and
very much to our advantage. The ex
ports were at least si50,00o, 900 above
what may be called the normal, while
the imports were fully si5O.o0o. 900 be
low. So that, under natural conditions
we cannot fairly count on trade bal
ance Of more than S3O0,00O.000, II sc
much.
In fact, that is long way above tn,
. average of past years.
I Now suppose that during the I;
, months ending with june our trade