The times. [volume] (Washington [D.C.]) 1897-1901, 1901-05-11
AN ENQUIRY AS TO EXPORTS.
Treasury Omciais Explain Why They
Exceed the Imports

The Bureau of Statistics of the Treasu-
| ry Department has prepared a statement
| covering an enquiry by Dadabahai Mao
roll, 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: In India heavy net excess
| always takes place because the system OF
| government of India compels a heavy
tribute; that is, compels a large drain of
| the produce of India to England without
| any material return of merchandise or
specie. But America is not under such
| draining system of an alien foreign gov
| eminent: and / therefore desire to know
the causes, and their extents, of such
| heavy net excess of exports of America
wealth or produce, and how this 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 this
| development of railways and manufacture
| ing establishments, including the opening
of new fields of production, was an enor-
| nous increase in the expectations and
disposition to relatively decrease the i'm
portations because the development of
| manufacturing was making 1t practicable
| to produce at home from our own mate
! rails much which was formerly brought
| in from abroad Thus the great business
| development of the years 1870 to 1890 had
tendency to stimulate production and
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 divi-
which it was invested. The further fact
that internal commerce and Investments
in internal developments were s&,rerri-iy
profitable. reduced and temporarily SuS-
pended shipbuilding in the United States.
and, as a 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
~ 70 ha foy+ 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 to 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-D the payment of interest on Amer
lean securities held abroad; (2) the pay
ment of earnings of foreign capital in
vested in business enterprises in the
United States; go 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: a. The cancellation of American |
to the United States of the railroad and |
other securities thus held: ~ 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 10 the amount |
of probably 900 in the year, and go |
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 |
by insisting upon their immediate pay |
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 |
obtaining more than estimates have been |
devised. These estimates usually put the |
amount paid to foreign vessels as |
freights on imports at about 5000. 600; |
interest on and earnings of foreign capt. |
tai, 100000 to Sloo.00000O; money ex- |
pended abroad by Americans. SIS, 900. 600 |
to $780, 100000; American FUNDS invested in |
foreign securities In 1900. about Sl00, GO 600. |
and credits permitted to stand abroad
in 1889 and 1900. each s75,O0O,OOO
amount of foreign Indebtedness actually |
Cancelled 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-
tion, while the rapid development of our
industries steadily re-
duces the relative importations OF man.
ufactured goods. though the raw mate
rails required for our manufacturers. es-
pecially those of 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
ance for payment of interest on our secu-
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 shipping
industry in a sufficient volume TO carry
our growing commerce seems to Justify
the expectation that this drain upon our
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
by investors in the United States in large |
sums: but ii seems at least probable that |
-wo of the factors which absorbed a con- |
siderable share of the favorable balance, |
namely, the payment OF interest and in
abroad and payment of |
7relGhts 10 foreign vessels, will within
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.