Orleans County monitor. [volume] (Barton, Vt.) 1872-1953, 1901-07-15
AMERICAN EXPORTS.

In a recent number of the North
american ReUielU Mr. Charles r. Flint
pointed TO the vast excess of our ex-
ports over our imports, which has
characterized our foreign trade during
the past four \ ears, as convincing
proof that c.,inmercial conditions in
the United States are infinitely better
than they are in other countries-such
as Great Britain, France and Germany
whose imports much exceed their
exports. In the July number of the
ReUieaO, Professor Joseph French
Johnson takes issue with Mr.. Flint
on that point. The real source of
national wealth in a country like the
United States is its internal commerce,
the profits accruing from foreign
commerce being comparatively bag
atelle. The real reason why the
imports of the older countries are
greater in value and volume than the
exports is because they have for
long time been investing their surplus
wealth for the development of the
resources of the newer countries
throughout the world, and a large
parts Of their imports represents the
payment of the interest due them on
these investments. 1t is wrong to
suppose that we shall always continue
TO export more than we import; for
as soon as we have surplus wealth to
invest about abroad, we shall begin to
receive interest in the same way,
which will come to US, not IN the
shape OF money, but in the shape of
goods Professor Johnson explains
why London is the financial center of
the world:
"At time when every good Amer
lean is anxious to see New York the
financial center of the world, any ex-
PLANTATION of London's proud position,
in that respect is worthy of attention.
Mr.. FIint's explanation contains more
than logic. In his opinion,
London's status, as the financial CEN
ter of the world, could not be main
tanned if England did not have large
investments in the United States and
we're not drawing something like two
hundred millions a year out of our
people on account of ocean freights
and foreign travel. she gets from
5hese Sources Mr.. Flint remarks, lin
L measure, what she loses in the bal
lnce of trade I am unable to follow
his reasoning, or to see any possible |
between the facts and the !
London's position as a
financial center is due to the fact that |
the is also the commercial center. |
london is called the financial center |
merely because bills of exchange on |
London are the most acceptable bills |
anywhere created. They do not owe
their acceptability to chance or to the
wealth of England, or to England's |
Investments in the United States. |
Their acceptability has a commercial |
origin. English ships have long been |
going into all the ports Of the world,
md English manufacturers have been
of necessity seeking markets in every |
and. Every where on the globe, one
inds business men dealing with Lon
lon, just as in the United States one
everywhere finds business houses en-
gagged in transactions of one kind or
another with New York firms. Thus
london exchange is in demand in all
markets. For this reason, and for no
other, London has become known as
The financial center. New York can
not Wrest the title from London until |
American manufacturers have found
customers in every land.