Twice-a-week plain dealer. (Cresco, Howard County, Iowa) 1895-1913, 1899-06-23
Excessive Exports a Drain of the
Cpuntry's Wealth.

Administration newspapers are con-
Stantly parading the figures showing
a great excess of exports over imports.
II the treasury statistics invariably
showed thatwe received the difference
between our exports and imports in
cash they might indicate that the
''balance of trade,n so-called, was a
good thing for the country. But with
nations, as with individuals, it does
not always follow that if we sell more
than we buy that prosperity is indi-
Gated. If we are able to consume and
hold a good share of the wealth we
produce and to bring more into the
country by importation the indica-
tions are that we are prospecting and
our wealth is increasing.
The Public, Mr.. Louis f. POSTS able
economic newspaper comments upon
the question, and we advise all our
readers to thoroughly consider it for
themselves. Says the Public:
San indianapolis lawyer, Flavius j.
Van Vorhis, has published an en-
lightened compilation of trade statis-
tics, taken from the treasury reports.
They are intended to show, as they
clearly do, that the excessive exports
of this country, so often mentioned as
evidence of prosperity, indicate drain
of the country's wealth. For the
period from 1884 to 1878 the country
received more merchandise and gold
and silver than it sent out, by S557,-
O59,6S7: but during the subsequent
period from 1873 to 1898, it sent out
more merchandise and gold and silver
than it received, by S3,09S, 40, 1874.
The difference between these two
amounts, Mr.. Van Vorhis holds to be
loss. He argues that the criterion
by which the business success Of the
country must be judged is the accumu-
lation by production or importation
of wealth within the country. And
while he admits, of course, that goods
sent out of country on credit, may
imply prosperity, he soundly insists
that the country is no richer until
that credit has been cancelled by goods
sent into the country. An extract
from his argument upon this point is
well worth reproduction;
"If a cargo of merchandise should
be shipped at New York and consigned
to Liverpool, and instead of reaching
that port should go.tto the bottom of
the Atlantic, it would nevertheless
appear in the treasury reports as an
export. Would it be a gain? Would
it form a part Of satisfactory bal
ance? Suppose it reached the port and
was sold on credit, would it add any
thing to the wealth of this country
until the debt was paid? The cargo
would be loss to this country whether
it went to the bottom Of the ocean or
reached the port and was sold on
credit, unless the debt made by the
sale should begin to draw imports to
us.
cit is not conceivable that any one
should seriously dispute this argument
OF Mr.. Van Vorhis, that exports which
remain unpaid for by imports are at a
loss. But the argument is admitted,
there is no escape from his conclusion
that from 1884 to 1898, the United
States has been enormously drained
of wealth by excessive exports. To
recur to his figures and tabulated foot
ings, we find this condition:
Loss, 1873 to 1898. j.. SO, 9OS, 40. 1874
Gain, 1884 to lS74........ 55Lo59, 6s7
Net loss. .s3.35l.4ll.O 47
"From which it appears that during
the past SO years we have sent out Tor
ost) more merchandise and gold and