The sun. [volume] (New York [N.Y.]) 1833-1916, 1898-12-21
BnrTisH ronkrex rsADB BADANoEs.



How Are They Paid For7
The steadily widening divergence between
British exports and imports is exciting con-
siderable discussion In the English press. and
In q correspondence going on in the London
Times some OF the writer's hold the Wow that
the continually growing difference between
the value OF the exports and that OF the I'M
ports Is due to the proftableness OF invest
ments abroad and OF the carrying trade. One
writer goes so far as to estimate these two
sources OF profit at $500. 100000. assianinR
half that amount to each. No evidence, how
ever. is furnished that the interest on British
foreign investments amounts to anything Ike
the sum OF S400.000,000 now, though there
was q time when as much us $500. 100000 may
have been drawn by England in the way OF In
terest on various kinds Of investments abroad,
1t is no secret that the holdings OF foreign
Government stocks IN England have been
enormously reduced in the last twenty years.
In that time most Of the Russian, Turkish and
Egyptian bonds have been sold; no Spanish
bonds are in English investors hands. and
but very small quantities OF German. French.
Italian or Dutch bonds are held In England.
while the holdings OF American Government
eecurities are insignificant, Although Il would
be almost impossible to obtain exact naures.
EEnissilssSn ii @o SsTt1 once sh inys = s5ef n tor SaiFS q a eSe
eminent securities, has been withdrawn, while
q not inoonsiderable amount, has bee lost. A
INVESTED in domestic and eoIonisY securitios
end In Chinese loans secured on the .customs.
l is no n otasF b alss' }aSs to s1 fsfsis m'e eSst eas Eas e.
S 5ssS; aS * I / |: ssssifSl lsT SSlss S tSlI sSs s5 %G pSss
df FroS t hss sf fse. lsf K Il a lGst sS t hat ln Whatever
years, 10 has not been the increase In the
amount OF money remuneratiyely invested nor
On the contrary. it l.. shown on q review Of fthe
situation that, apart from the sales OF foreign
sspord Sss bs sse da inSi o t from i eonSspsions
groups Of Investments have been the, cause
and Australian mines. In addition to the Amer.
lean breweries already mentioned. On thhe
great seStS; v j ne'e 81 impo II H e now DosH Se}as paid for
by the income Of former investments: and the
sssfsSS S 6BS that b. anything fyom IKE ,h g e cseftin 81
trade under the known conditions is held 70
S SS %sRRti noIs e 45s@ sSSs;y ob Il Il d9 ~ Ssslv gassst To%
that source. and the question Is asked from
f TShatt, a s0HrSss then ~ ,S are the shs means SSIasS obtained for
was only, about s~SOO.00o,006. which there was
thenno d%iflculty IN meeting, while for the year
e enorn ntSssDs am snS tie Of sf.o6 u , ess,a6S6e0 t t has
reached this sum By a steady increase IN al;
bullion are not Included IN these fisqreS. and
as as they he ssnsilEailE have sd nearly ean balanced Iucon they T 6o
money then to meet the adverse liabilities Ii
believed to come. as It has on previous COCA
sions, from the sale of securities. Our own
to an extent never equaIled before. not even In
1880 to 1888. when the trading balance IN our
the ready puTehase Of our railway securities
from England and Germany that has made II
possible for Europe to pay for its imports Of
seriously oyerstraininG its credit. Unfortunate-
~, in addition to having to pay FOR food i'm
Of securities has been:eambled away In over
cagitalized speculative companies.
70 is's some cases ssesfiii GETS sease wo oisena' Win az the nsa British Ism
possessions little more business is dom, than
Africa, where the. gold and diamond fields
have done something to expsnd trade: The
trsiia Is s oniy re Il sSSf9d Prcg 1ea fHa' TTiR5ss trade trade
t Tish' G bet%een sh fsss an Inprf 1893. 4 Th sslll w Iffs
France has undergone startling changes since
years yssa; E Tse s SSSssSS 8 to 5Gr the fs' l n5soaSsif r ssn
II$P FL IS d " Ssss sssi 4 Is sB3s $$ 3 33 S ! SSSS S 5 s% a. w e r.
f. is37 they ,Eere Under So.93o;;S6S6o: ana
previously. the trade with Portugal Is decaying
and the imports from Holland. m Rus
STA and Belgium increase. while the exports to
y. The trade with China Is il an unsatisifac-
tory condition.
The general conclusion arrived at is that
England Is now treating capital as revenue and
paying for its foreign purchases in the savings
ofthe past.and that unless it moderates the ex-
t~rava9ance OF its purchases. II will be COM
PEELED to enter on a period of economy through
severe and troublesome crises. The opinion is
Also, gaining ground that important changes in
made before long II British agriculture is to
be revived. and the country made less de-
pendent on foreign sources for It's food supplies.