The Washington times., 1901-11-12


more directed attention to the remark
| able circumstance that, with all the
enormous trade balances in our favor
we are also shipping gold. During the
last three years these balances have
amounted to considerably more than
billion and a half dollars, and still
there has been no movement of gold in
our direction.
We hear and read much of the eX-
tinguishment of our foreign debt and
that we have now become q creditor
nation. Doubtless it is true that many
of oug' securities held abroad have beer
returned to us. but it will take a good
deal more than a return OF all such Sc
curities to make US, in any proper
sense, a creditor nation. A very large
proportion of the foreign demands
against US are of such character that
they do not admit of extinction in that
way They consist of Investments in
American business enterprises, the
profits of which are promptly reinvest-
ed. thus steadily increasing the amount
of the demands against us on this ac-
count. Other items, such as the eX-
penditures Of our tourists in other lands
and payments on account of freights.
are constantly going on, and are at all
times to be offset against the trade
balances.
In the funness OF time it would seem
as if such a trade as we now have
would put lis in the position of credi-
tor nation. but that will only be when
American investments in other coun-
tries exceed the foreign investments
here That such point has not been
reached is conclusively proved by the
very fact of our huge trade balances
continuing. If, for example, our in
vestments in Europe were equal to for
eign investments here, the interest and
dividend accounts would approximate
Iy balance, and, therefore, our excess
of exports would have to be paid for
with money; either that or We would
be obliged to leave these great sums
lying idle in Europe waiting for invest
ment opportunities. The idea that any
such condition exists is absurd in view
of the fact that only couple of
months ago New York was appealing
to the Federal Treasury for financial
aid
There is no way in which we can
continue indefinitely to sell hundreds of
millions worth of goods ernu ally more
than we buy, unless those goods go very
largely in satisfaction of foreign de
mands against US. AS soon as Europe
has to pay cash for them, she will stop
buying. for the simple reason that she
viii be obliged to do so.
II has been suggested that we may
continue this great excess of sales
over purchases by ourselves becoming
a creditor, and investing the proceeds
in Europe and elsewhere abroad. This
view overlooks the fact already meIl-
toned, that such Investments Will them
selves call for money returns, and sim
ply increase the cash balance in our
favor Great creditor nations all buy
more than they sell. They must do it
for the simple reason that the debtor
countries cannot part with their money.
If they do, it lowers prices in those
countries and increases their exports.
Undoubtedly we may invest large sums
abroad and continue to sell in excess
of our purchases for a while, but there
must be an end to ii soInT time. The
very act of investing our surplus funds
in other countries will develop their in
dustries, and increase their exports. II
they cannot sell their surplus products,
they cannot prosper, and they would
be a rather uninviting field for the in
vestment of American capital,
The trade question is a complex one,
but il is still perfectly clear that in the
last analysis commerce consists of the
interchange OF commodities for COM
modities. from which it follows mex
orably that in the end they must sub
stantially balance A country situated
as England is may buy more than she
sells. and do it indefinitely; but it is
merely because, in part. she is living
upon the income derived from her for
eign investments. But the converse of
the proposition does not hold good. a
debtor nation cannot buy permanently
in excess of its sales For that reason
we cannot hope TO make the world
largely 1ur debtor, and al the same time
continue to sell more than we buy.
1t is a somewhat significant circum-
sta,ce that the beet sugar industry is
lang fishing everywhere, save possibly in
the United S.ctes, where it is sustained
in degree by the tariff. From Germany,
Austria Hungary, and Russia comes the
same story Of depression in this business.
The trouble seems 70 be overproduction.
There is well-defined limit to the
worlds capacity for the consumption Of
sugar, and the production of the article
has been artificially forced. When supply
is thus made to outrun the demand de-
preston is inevitable.
All the reform forces in Greater New
York arc grinning over the joke perpe-
trated upon themselves by twelve thou
sand voters who wanted 70 vote the Tam
many ticket, but at the same time TO
scratch Van Wyck. Many Of them
scrawled across his name: We want no
ice in ours" That was suggestive. but
fatal to the ballot the law providing that
any mark, except the simple crossmarks
in the circle under the caption and in the
squares opposite the names, vitiates It,
If these twelve thousand votes had been
properly deposited, number of Tammany
candidates would have pulled through
Van Hoesen would have won the pres
idency Of the Board of Aldermen. and
other Of Crokers friends, namely,
Fromme, Dayton, Oakley, FahFbach,
Goodwin Schuchman. and all the Tam
many coroners. would he in clover today.
Mr.. Van Wyck is at liberty to comfort
himself with the assurance that his un-
popularity not only defeated himself but
destroyed a large and weli-selected as
sortment of his political coparceners.