The times., 1901-05-11
AN ENQUIRY AS TO EXPORTS.
Treasury officials Explain Why They
Exceed the TmpOrts

EAtcSu tBe Imports.
The Bureau of Statistics of the Treasu-
ry Department has prepared a statement
covering an enquiry by Dadabahai Mao
roji, an Indian gentleman residing in Lon
don, as to what has caused so much pro-
duce merchandise, anu specie of the Unit
ed States to go out of the country with
out the ordinary corresponding return.
Mr.. NaoroJi, in his enquiry, addressed
to the Bureau of Statistics. quotes the re-
cent figures showing large excess of ex-
ports Of merchandise and specie over the
net imports of merchandise and specie.
and says; I'm India a heavy net excess
always takes place because the system OF
government of India compels heavy
tribute; that is, compels large drain OF
the produce of India to England without
any material return of merchandise or
specie. But America is not under such a
draining system of an alien foreign gov
ernment: and l therefore desire to know
the causes, and their extents, of such
heavy net excess of exports of America
wealth or produce, and how tins large
balance of trade is expected to be set
tied
The following extracts are taken from
the reply of the Chief of the Bureau of
Statistics:
During the period Immediately follow
ing our civil war great internal develop
ment of our railways and manufacturing
occurred. Much foreign capital was
brought into the United States for use in
this development, and during that time
and in subsequent years railroad and 9TH
er securities were largely marketed
abroad. The commercial results OF tins
development of railways and manufactur-
ing establishments, including the opening
of new fields of production, was an enor-
nous increase in the expectations and a
disposition TO relatively decrease the i'm
portations because the development or
manufacturing was making it practicable
TO produce at home from our own mate
rials much which was formerly brought
in from abroad. Thus the great business
development Of the years 1870 to lS9O had
a tendency to stimulate production ana
expectation, but discouraged importation,
and, as a consequence, exports exceeded
imports in constantly increasing ratio.
THE fact, however that large sums had
been borrowed abroad for the internal de-
velopments above alluded to required pay
ments of large sums for the annual in
tereSt charges, and thus absorbed part
of the proceeds of the surplus exports.
The earnings of foreign capital invested
in great enterprises in this country, other
than that obtained by the sale of bonds
or by direct loans, also require consider
able sums for the payment of the div1-
which ii was invested The further fact
that internal commerce and investments
in internal developments were extremely
profitable reduced and temporarily suS-
pended shipbuiding in the United States.
and. as q consequence. the increasing
traffic came to be carried more and more
in foreign ships, and the payment of the
freights thereon, especially the freights
upon imports, again absorbed a large adj
ditional amount of the proceeds of the ex-
cess of exports.
m ba rfei1 ic hat
of the money expended by Americans
travelling abroad who usually take their
funds in the form of letters of credit, and
draw from time 10 time for such sums as
they require, and this of course proves
an offset to that extent against the bal
ance which would otherwise be returned |
to the United States in the form of cash.
Until recently these four great fac |
tors-tD the payment of interest on Amer |
lean securities held abroad: 20 the pay |
ment of earnings of foreign capital in |
vested in business enterprises in the /
United States; 90 the payment of foreign |
freightS carried in foreign vessels espe- |
cially freights on goods imported into the |
United States, and "a the expenditures
of American travelling abrOad-have been |
considered the chief cause of the fact that
the exports of merchandise so much
exceeded the combined imports of mer-
chandise, specie, and bullion. Within the |
last two or three years, however, three
further factors have apparently been
added: QJ The cancellation of American
to the United States of the railroad and |
other securities thus held; 90 the sale of
foreign securities in the United States,
such as the German. British, and Russian
securities. which were placed upon the |
markets here during the last year, and
in most cases quickly taken to the amount
of probably 800 1900 in the year. and (3) |
the credits which now stand abroad in |
favor Of our exporters, and which are |
permitted to so stand because better in
terest rates could thus be realized than
IEti fhatr Tor
ment.
The sums of money represented by
these various factors, which presumably
about equal the excess of exports over
imports, have been variously estimated,
and up to the present time no means of
more than estimates have been
devised. These estimates usually put the |
amount paid to foreign vessels as
treights on imports at about $4,000 600;
interest on and earnings of foreign capt. !
tai SIS, 900 900 to 800 900. .00O; money ex- !
to S100.00O0G0; American funds invested in |
foreign securities I'm 1900, about 100000 600. |
and credits permitted to stand abroad
in 1889 and 1900, each $75, coo 900 |
10 800, ,00G 000: to which must be added the |
amount of foreign indebtedness actually
by the return Of securities for
which no definite estimate has, so far as
| am aware. been made.
The United States is rapidly increas-
ing her production, especially of the min
erals and of manufactures for eXporta-
industries steadily re-
duces the relative importations OF man
ufactured goods, though the raw mate
rials required for our manufacturers, eS-
pecially those of a tropical and subtropi-
cal nature which we cannot produce at
home. are constantly Increasing, as are
also the tropical foodstuffs of which we
DO not produce a sufficient quantity TO
meet our own requirements The fact
that we are rapidly becoming a creditor
instead of a debtor nation will reduce to
a minimum and wipe out the annual bal
lnce for payment of interest on our secu-
rites held abroad, and finally for the
liquidation Of those securities, and to this
extent the absorption of our favorable |
balance of trade will be rapidly reduced;
while the present disposition to encour-
age the re-esta bliShment of our shipping
in a sufficient volume to carry |
our growing commerce seems TO Justify
The expectation that this drain upon our |
surplus may be at least somewhat re-
luced in the near future. Our foreign
credits, as above alluded to, have in !
creased largely during the last few years, !
and foreign obligations have been taken | ,
ly investors in the United States in large !
sums but it seems at least probable that |
wO of the factors which absorbed a con- |
siderable share of the favorable balance, | $
the payment of interest and in
iebtedness abroad and payment of !
'reights 10 foreign vessels, will within a
short time be materially
reduced. and thus require a settlement
with specie and bullion of a larger proper | !
ion of the trade balance than has been | ,
he case in former years
THE NAVY YARD VISITED.
Cardinal Gibbons HOnored on Board