Goldsboro weekly argus. [volume] (Goldsboro, N.C.) 1885-1909, 1901-06-06
OUR FOREIGN BUSINESS
No Credit Trade Balance Abroad
In Our Favor.
A POPULAR ERROR CORRECTED.

new LULA AAEACG say "C
Fact Borrowers From Europe and
Will Meet Loans When the Crops
Come In-Many Securities Sold Back
to Us.
Important banking interests III New
York city admitted the other day that
the belief that has generally obtained
that the United States has at the pres
Gnt m a great international credit
balance-that is, a great of debt
owed to the United States by Europe
is not we'll founded, says the New York
Sun. AS a matter of fact, the United
States is at this time in reality, through
the operations of the foreign exchange
market, borrowing from Europe, al
though this debt, represented by long
sterling, will be settled later in the sea-
son as our grain and cotton crops
which are still to be harvested are
shipped abroad. One banker who was
interviewed said that there had for a
long time been a great deal of misin-
formation circulated regarding the ex-
istence of the big SO called internation-
al trade balance in favor of the United
States.
"Since about April l." said this bank
er, "some Of the largest banking houses
here having dealings with Europe have
drawn very large amounts Of 60 and
80 day bills of exchange, n they are
still drawing them. These bills are not
drawn against balances abroad, but
are in the nature of loan bills. Such
bills are regularly drawn every sum-
mer, but this year they began to be
drawn earlier than usual, about April
I, although usually they do not begin
to appear until along in May. If any
balances existed abroad, the bills
drawn would be demand bills of ex-
change, not long bills.
"In figuring the balance in favor of
this country on the oasis of the net ex-
ports of merchandise owe the net i'm
ports Of merchandise there d been
no taking into account of the very
large amount of money that rich Amer
leans residing abroad spend there, the
money Of course being drawn from
this country. In this category are such
men as William Waldorf Astor and
Bradley Martin and such as
the Countess de Castellane Il the
Duchess of Marlborough. There is a
great number of sue rich foreign
Americans living in London, Paris and
Italy, and to them can be added a
great many more Americans of less
wealth who also live abroad and who
spend q very large sum in the aggre-
gate. For example, there are living in
the city of Dresden alone 10000 Ameri-
cans. Besides all this there is the
amount, which has been calculated al
$1OO,O00,0 600 yearly, which is spent b!
American travellers in Europe. In al
dition there is the amount of the
freights and insurance on our ship
ments abroad which we pay to Europe.
The net balance is very much smaller
than the amount which the Stats
ticians have been figuring it at.
ga great many of our dividend n
interesting yielding securities have
been selling or only about a 3 per cent
income basis, and his fact has in
duced foreign holders of such securi-
ties to part with them. They have also
disposed of many nondividend paying
American securities, such as Reading
and Erie shares, which have advanced
in price largely in the American mar
ket. If actual figures could be obtain
eQ, IL WOulu D0 1Ouuu lIdl d Act Id
ance at the present does not
exist as a bankers balance-that is, al
actual cash balance. 1t might be worth
noting that if the amount owed by Eu
rope on the export balance of merchan-
disc had to be paid to the United
States in cash Europe would be drain
ed of cash, and the very market foi
our goods would be nterfered with, as
the people who are our best customers
could not buy. The whole matter of
settlement is worked out through the
foreign exchange market. The cleo
trio cable and steam have brought the
countries of the world so close together
that their financial prosperity n al
versity are intertWined, and poverty III
Europe could not help but react on US.
while it is true hat European hold
ers Of our securities have been parting
with them, it must not be forgotten.
hat they have been buying them for
the last &C years, and while a great
deal of what they have bought has
since found it's way back to this coun
try Europe still undoubtedly holds a
great many of our securities as well
as interests in various American in
Whlcn yletu an lHcoMe "
their holders. This is an additional
item that has helped to offset he Sc
called international trade balance. II
Europe owed US money, it is certain we
could not nave been exporting gold anG
at the same time have been drawing
long bills of exchange. The balances
are custom house balances merely, not
actual cash balances"
To Purchase Plains of Abraham.
The question as to the ownership OF
the HISTORIC Mains of Abraham has at