The St. Louis Republic. [volume] (St. Louis, Mo.) 1888-1919, 1901-07-14

1duCe are WTuluS q total OF over one
billion on the wrong side Of the ledger
every year.
Until the year 1879. the United States
imported goods valued at $2,107 .4JO, 900
in excess of exports, a practical condi-
ton that would have pushed the United
States into bankruptcy If the old mer-
camille theory relative to exports and
imports had been true. As matter Of
TACT, the country grew richer all this
time, as Mr.. Bullock explains.
For instance, Our merchant marine in
that period earned from the foreign
trade $1,217, 100000. Again, foreign
capital invested In this country helped
to reduce the total. Production Of gold
after the discovery of the California
fields in 1S49 added another element Of
resources that equalized matters.
After 1873 and until 1896, the exports
exceeded the imports by S2,2s9, COZ. 600,
an inevitable result of the movements
of capital in the decade previous to that
time. The imitation of the currency had
raised prices previous to 1873, thus in
viting Importation. When the imitation
burst, prices fell SO low in this country
that exports naturally rose. In addition
to the $2,2S9, co., 900, the United States
exported an excess Of specie Of $780,
100000 over imports, SO that the c0un-
try was entitled to total credit of ST.
s1S.O0O,O00. This meant" says Mr..
Bullock, that the country had assumed
its normal position as debtor nation
on the various items of invisible ex-
changes, and was paying annually some
thing like $122,5OO,OOO ON such ac-
counts"
The debts included the interest upon
$2,00O.O00.00O OF invested foreign capt.
tai, amounting to various sums, prob
ably between S1.s4O, 1000, 600 and 5000
100000. This sum would be decreased
by the investment of new capital, az
sregating about $4,000, 600. Through
the decrease in our merchant marine,
the United States owed for freight $685.
100000. American tourists spent on an
average $5O.000.OO0 year in Europe,
another item Of Indebtedness. Rents on
Land owned by foreigners should be in
cluded as well as the annual profits Of
foreign insurance companies. At the
close Of the period the invisible elements
Of Indebtedness Offset the excess of i'm
ports.
So in the past five years. The excess
OF exports over imports for the four
years ending June, 1900, was $780,
100000, a phenomenal amount. Yet dur
ing that same period only $94,67O, OOO,-
00O in specie was imported, leaving q
net balance Of $1,SS1, 100000 to be ac-
counted for by elements Of indebted
ness.
During that period, the United States
paid in interest to foreigners about
500, 600. 900. Payments to shipowners
for freight amounted to $191, 100000.
American tourists spent In Europe about
$3.50, 0OO. 600. Other items of Invisible
debt amounted to about 500, OOO, 600, SO
that the total deduction for the excess
In exports may be placed at $941, Co.,
GOO. Deducting further expenditures ON
account Of the war with Spain, there Is
apparently on the trade Of the four
years about $500, O00,O to be accounted
fo:.
Two explanations for this situation
are given-fi first that the official statis-
tics have overestimated the value of ex-
ports, and the other, that American capt.
tai is seeking investment abroad. AS
this second item grows larger, SO will
foreigners have to pay the interest by
bringing to parity the exports and i'm
ports. The growth Of the American
merchant marine win further decrease
Our Indebtedness to foreigners. Finally,
the supply Of gold and silver which this
country furnishes to the world will help
to change present conditions.