The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1901-04-20
THE EXTREME OF ABsuRDrTY.

The large excess OF the value Of mer-
chandise exported from the United States
over tho value OF goods imported is the
Cause of solicitude to several papers which
would like to be called Democratic. The
prospect that the balance of trade" IN
favor OF the United States will be $75OOOo.O0)
the present fiscal year irrtates them, and
they proceed TO mix themselves I'm endless
confusion over the meaning and the effect
of a favorable trade balance. They are by
means certain that the selling OF moie
merchandise 10 foreign peoples than we buy
of them Is a transaction that can be called
favorable TO us. The Chicago Chronicle
has led off in this confusion of itself and its
friends. After stating the official fact that
during the first three quarters of the pres
ent fiscal year we sold the rest of the world
$40. 6S7. 337 more in value of goods than We
purchased. the Chronicle goes on to say
Ii stands 10 bookkeeping reason that II
we have parted with merchandise worth
S54l. 10000 more than the merchandise we
have received we must be just that much
out OF pocket, unless we have received
something besides merchandise for the ex-
cess Of merchandise We have parted with
But the exulting commercial philosophers
and party roOsters do not shed the fainteSt
ray of light on that point. Instead OF that
they bristle upon the fence and crow an
other crow about the startling gain in the
balance Of trade. Let them stop their
vociferation for a minute and tell us where
the startling gain comes in 1t looks very
much like a startling loss If we get nothing
for the enormous value of goods shipped
cut in excess of the value of goods brought
ILL., Have we received money Tor the Dal-
ance?
If the use of vociferous epithet were ar
gument the foregoing would be conclusive,
bat no amount of vociferation can conceal
the weakness of such statements The
absurd assumption is that the people of this
country have made present of S541, 0OOo 900
worth of goods to the rest of the world
because those who shipped them have not
brought back In cash that amount as soon
the goods are sold. 1T is an assumption
that American exporters are able and will
ing to give away half a billion dollars
worth of goods in nine months, and are
foolish enough to believe that such trans
actions are matters TO exult over. The
Chronicle seems to forget that a portion
OF this balance is paid freights. 1t is
oblivious of the fact that American securi-
t.es If commercial papers can be believed,
have been coming home from Europe the
past four years, the holders preferring to
part with them TO taking the gold out of
their banks to pay the balance. 1t also
ignores the fact that some foreign loans
nave been taken by American investors,
and that thousands of American tourists
spend a large amount of money abroad
every season, all Of which. by the processes
OF exchange, is paid out OF the favorable
trade balance instead of shipping gold ID
meet these demands. With rates of in
terest as high and sometimes higher in
London and Berlin than those prevailing
in New York, these papers which are
worrying themselves about the loss of the
millions of dollars we sell in excess Of the
millions we purchase cannot conceive THAI
American money remains in Europe for
investment.
Our friends are cautioned to cease de-
claring that American producers and eX-
porters are not sharp enough TO see that
they get their pay for all they sell to
foreign nations since, if they continue this
sort of chatter they will make themselves
the objects of general ridicule. They ought
to be able to find a more plausible buga-