Graham guardian., 1899-01-13
OUR BALANCE OF TRADE.

Va A~PuDiN"h ouhlhioia aViOh |
many republican papers, particu.
larly those not over-well enlighten-
ed, published items of editorial sim.
liar to he following clipped from
the columns of the Arizonidn;
The balance Of trade in our
favsr for 1898 will be considerably
larger than the cost of the war"
These items are published by
such papers to impress the people
with the idea that republican I'D
ministration has brought a season
of great prosperity to this country
That the balance of trade be-
tween this country and foreign
lands was in favor of this country
last year is true. 1t is true of
every year for the last three de-
cades. Even under the republican
administration that Grover Cleve-
land gave the country, it was true.
And so far as the balance OF trade
goes the country has been pros
porous at all times.
But they only tell one side OF
the story; and a half truth is the
worst kind of a falsehood. They
fail to say in connection with the
balance of trade, that while that is
very largely in favor of this coun-
try, that the balance of exchange
is against it.
The better class of republican
papers cannet afford to publish
half truths, knowing that they
would be sure to be exposed, and
their ignorance or mendacity ridi-
culed. Hence they are cautious
and do not say much on the sub
iect. But inJan. 1896 the San Fran
disco Chronical published an ed
torial in which 1t made the slg-
niticant statement that for the
year 1894 the balance of trade be-
tween the United States and
European countries was in favor OF
this country by S515,0D0,OOO; but
that the balance of exchange was
$24 100000 in favor of Europe.
This statement can be made every
year with only a slight variation
of figures. And what does it
mean? 1t simply means that
while this country is great in pro
duction, and vast in resources, and
pours into tho markets of foreign
lands much more of its products
than those countries send to it the
balance of cash which should be in
its faver Is against it, and that its
people instead of being rich by
many millions of dollars each
year are becoming poorer from
year to year.
The cause of the balance of ex-
change, or in plain terms, the bal
ance of cash, being against this
country while it should be in its
favor by hundreds of millions of
dollars each year, is that tho legIs-
lation of this country has been at
all times, under republican rule,
in favor of the capitalist and
against the producer. First the
gresnback was called in and con-
verted into an interest-bearing
bonded debt. Then in due course
of time silver was demonetized.
Thus money was made scarce in
this country; and an opportunity
created for foreign capital to come
here and find employment. When
this was done thepeople of this coun
try became interest payers to fore
ign capitalists. This has gone on
for many years and to such an ex,
tent that the people of America are
now paying to foreign money lend.
ers every year in interest alone
more than $500, 100000. Hence it
10 easy 10 see that, viewed from the
standpoint of "balance of trade"
alone, the "wave of prosperity"
rolls high. But, viewing 1t from
the standpoint of "bslance of ex.
change" it also easy to see that
the American people are gradually
becoming pauperized, and, as the
years 60 by, are becoming more
and more the supporters Of the
noneyes aristocracy of foreign