The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1900-03-20
SEATTLE, TUESDAY, MARCH 20.
Another Vanished Theory.

The reports of our foreign trade for
the last three years administer a death
blow to one OF the most cherished and.
upon its face. one of the strongest ar
guments OF the free traders. 1t has
been their habit to Triumph
antly tina the carrying out of the pro
tective idea must impair the foreign
trade OF any nation. Commerce. h
say. fs barter. II consists In exchanges
etwee two nations, whereby each fur
nishes the other with commodities that
can be produced to greater advantage
by the seller than the buyer. When a
protective tariff is raised to a point that
cursaiIs imports. 1t must lessen exports
c-orrespondingiy. And long and loud
have been the free trade howls OF de-
rision over a policy which. while pro-
fecting the home manufacturer and pre-
serving the home market by levyins du-
ties on imports. sought also to extend
the foreign market for domestic prod
ucts. The thing. said the Democrats,
was self-contradictory. II you shut out
a seller. you cut off a buyer. II you
diminish imports. you must also lessen
exports. For where people cannot sell
they cannot buy.
The practical fallacy Of the argument
lies In Its assumption that trade Is lin
tied to two nations alone. Undoubtedly.
II all commerce In the world were divid-
ed between w great powers. Their their
imports and exports must substantially
balance unless one of them had stocks
of gold with which TO settle its bills.
But where there are many parties to the
act OF bartering. tho theory falls to the
ground. Tn nations Of the world will
buy Of us the things which they can OBJ
tain OF us more advantageously than
elsewhere. practically without regard 10
what We buy OF them. Most of them
expect TO make up on other trade h
that with the United states for their ex-
cess OF imports from this country. In
the last analysis, Of course somebody
must settle the trade balance. Rut this
does not disturb commercial operations.
or make this country less eligible as "a
market for purchasers. The fact re-
mains, stubhornly subverslve OF one Of
the fundamental theories OF free trade.
and one that has been most dogmatic-
ally laid down. that. with a tarin which
prctectlonists admit to he adequate and
their opponents deuounoe as outrageous.
this country has sold n Is selling To
foreign customers more than ever be
fore In its history. both absolutely and
aiso In excess 81 what Il buys from
them.
For the year 1895 the exports from tho
United states exceeded It's Imports by
over s6oo. 600. o0o. For the year 1899 the
excess was $3.50. 900. 200. Ia two years We
parted with nearly $780, oo ooo worth or
commodities more than we purchased.
During those two years there WAS IN
force the scale Of duties levied by the
nlnslsy iaw an act which the free trad
ers declared 70 be utterly destructive -
foreign trade. because ia limitation Of
imports must involve a corresponding
reduction - exports The theory was
beautiful but the facts arr simply stun
ning. Nor Ia this a temporary condition
on the theory ~ abstract economies
such a condition would bring about, IS
own destruction Commodities Ia a
country where such immense purchases
were made would rise in price the mar
kets OF other nations would therefore
oner better bargains 10 the buyer ana
Imports 60 the United States woula tn
crease or at least remain stationary
while exports declined until the balance
was restored such Is the doctrfn@ latl
down in all the cid IA most II the
new textbooks on economics The facts
play havoc with II,
Nearly nine months have elapsed since
tho close Of the last ascsl year. the sec
ond 81 those marked by the tremendous
growth of our export business, II the
old theories were correct, II the free
traders were right. the balance must
have begun some time ago 10 swing up
ward again. II is true that prices have
advanced. II is true that the world has
hsd to remit TO us more h a billion
dollars In some share. by the sale af