The Washington times., 1901-07-15
Our Foreign Trade.

Our Foreign Trade.
Very properly our enormous and rap
idly growing export trade is receiving
a great deal of attention. Although
our foreign commerce constitutes but a
small fraction of the countrys entire
| business, it is nevertheless, as The
| Times has heretofore remarked. one of
the chief factors in our national pros
perity, because 1t represents a disposi-
tion of the surplus. This is a matter of
| vital concern to US, for the United
| States is far and away ahead of all
other nations as a producer. 1t is not
| only of prime Importance TO US that we
! be able to sell our surplus. but that
| we get good prices for it
The official reports show that for the
year ending June 30. 1901, our exports
were in round numbers ninety-three
million dollars greater than during the
previous year. The total of our exports
is given at 81 ,4s7 ,656, ,544. If Hawaii had
been included. as in former years, the
| grand aggregate would have been a bill
! lion and half. During the same
period the balance of trade in our favor
was 1864 .90o,0 oil, being a hundred and
twenty millions greater than for the
previous year.
The rapid increase of our trade bal
ance during recent years has been due
| to two principal causes, first, the pro-
ductive capacity of our own country,
and secondly, the need which other
countries have of our products. Both
the quantity of the goods sold and the
prices Obtained have been factors in
making up the balance, and it is well
TO bear in mind the circumstance that
the average prices of our export staples
are some twelve or fifteen per cent
higher than they were four years ago,
which, in itself, has been no small item
in swelling the balance. True, the
prices of the things we have imported
have gone up in nearly the same ratio.
but as our exports have greatly ex-
ceeded our imports, the advantage has
been largely upon our side.
The fact has long been recognized
that the greater the productive capac-
ity of a country, the greater is the in
terest of that country in maintaining a
high price level. The cause of the
business depression which, with only
temporary revivals. covered the whole
period from 1873 to 1897 was the steady
fall OF the price level, which made PRO
ductive enterprise Improbable. During
that period average prices fell about
forty-five per cent, and there was moth
ing in the way of revival until prices
took an upward turn. No man en-
IN,
found comfort in a falling market, how
ever desirable it may seem as an alb
stract proposition to be able to buy
cheaply.
The swelling Of the absolute quanti-
ty of our exports indicates the vast in
crease of the country's productivity
By far the most significant feature of
the Industrial situation is the fact that
the United States is capable of produc-
ing SO largely in excess of its own re-
quirements. Sometimes, as in the case
of India, country must export pro-
ducts which ii actually needs at home
The products must go in order to meet
the inexorable demands of creditors.
But while we send abroad hundreds of
millions of dollars worth of products.
the value of which is simply applied
upon foreign demands against us. it in
wolves no hardship, for we always re-
tain an ample supply for our own needs.
and, as whole. the American people
are the most comfortable of any in the
world.
How long we shall be able to hold
such trade balance as we now have is
matter for much curious speculation
There are too many interdepcndent
questions involved TO justify anything
like definite prediction. One thing is
sure; Europe will never part with any
considerable portion of its money in
order 10 buy our goods. Thus we see
that during the last year, while he
balance in our favor was six hundred
and sixty-four million dollars, we only |
received about eleven Millions in gold. |
If it proves true, as the London /
Statist' predicts, that England viii |
soon be Obliged to ship gold to this side,
we NAV be sure that il will not be in
n very large amount. 1t may he suf-
ficient TO create monetary stringency
in London, but 1t viii be almost moth
ing compared with what England owes
-, as indicated by the trade balance
The reason is simply that England can
not spare the money. 1t has been stated
by good authority that a sudden short
age Of fifty million dollars would ere
ate a panic in England at almost any
time, and probably the statement is
approximately true. But the moment !