Hutchinson gazette., 1899-01-19
THE TRADE BALANCE.
WHY 1T is CLAIMED TO BE
AGAINST US.
ThS Peculiar Method OF bookkeeping
Employed by tho Unlted states
Treasury Ia RssponSlbie for tho APP
parent Shortage.

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| Ihave received from different local..
ties a number OF letters making in7
qurles and suggestions concerning the
table Published in the Nonconiormist
Of Nov "a, ! have answered most OF
them briefly with the promise that |
would answer more fully through your
columns Professional engagements
have caused longer delay In doing so
than 1 had anticipated.
lam not surprised that the table Of
exports and imports OF merchandise
and money metals, In the face Of the
exultant claims that have been made
by the gold standard press, has been
read with some astonishment " not
incredulity, particularly by those who
thus had their attention called TO the
matter for the 2rst time. II has been
30 generally the claim that our foreign
trade relations show balance In our
favor that when attention Is called TO
the truth, that In 20 years ending June
30, 1898, there have been but two years
during which the balance was not
against us, the truth 30 surprises many
people that II seems 10 them unbeliev
able
II Is difficult TO understand how IL
has come about that the American
people have for so long been so misled
in regard to the bookkeeping OF our
foreign trade that they have mistaken
the loss column for the gain and the
gain column for the loss. They are
astonished when\ told that the book
keeping Of the treasury department In
95 years really showsan aggregate loss
Of 80, 022, 1905 OF the wealth pro-
duced by this country within that time
II has been the almost universal Gus.
tom TO consider only the merchandise
we have sold and exported as indica-
ting n balance OF trade In our favor
The inquiry has rarely been made,
What did we get for it9" 1t is inn
possible that n man can in business in
any way or for any purpose part with
more than he receives and have gain,
1t cannot be less impossible for ma
tion TO do so.
1t ia perfectly clear that in the book
keeping OF the treasury department In
the summary the column that shov S
excess of exports over imports" is the
loss column and the column that shows
excess of imports over exports" is the
gain column. In order to determine
whether in our foreign trade there is a
balance in our favor or against us we
must find the sum OF all commodities
exported and also the sum Of all com.
modities imported The difference be-
tween them will indicate the loss Or
The gain during any given time.
II must be remembered that in our
foreign trade bookkeeping no such
Thing as money is or can be properly
Included, for money cannot be either
exported or imported, In foreign trade
gold and silver are as much commodi-
lies as arc wheat or corn.
In the treasury department are three
tables--one covering all "merchan-
dise," one covering gold ore bullion
and coin" and one covering 'silver ore
bullion and coin" These three tables
include all exports and imports. When
they are consolidated, the result must
show whether there has been balance
in our favor or against us II the Ia
BILE shows an excess Of exports over
Imports, it is a balance against us and |
,early loss OF our wealth. II the
table shows an eAcess of imports over
exports, their balance is in our favor,
and clearly gain in our aggregate
wealth. In the tables in which you
publish in your number of Nov. "a the
balance is shown TO be largely against
uS This balance shows large aggre-
gate loss during the last 25 years to
the people Of this country.
quote from one of the letters have
received:
II think that IL the United States
treasury Is complete measure OF the
entire results OF exports and imports
Of merchandise and precious metals,
you are correct But is it a complete
measured"
In what way can these three tables,
merchandise, gold and silver, full to
include all exports and all importsP
There are no commodities except gold
and silver not included under the term
merchandise, " and these three tables
include all commodities that it is pos
sible to export or to import The only
way that the treasury reports can fail
to be a complete measure" is that
gold or silver or some article OF mer-
chandise should escape the attention
Of the department in getting in or out
Of the country and thus fail to be in
cluded in either Of the tables Under
fbe etatutes rules and reuulntionE of