The Globe-republican., 1902-02-13
OURFOREIGN CREDITS
THEORISTS WORRIED ON THE SUB
JECT OF TRADE BALANCES.


Just now there IS a good deal of dis
oussion going on regarding the big
trade balances piled up by the United
ton and prosperity It is a subject
which worries the free traders might
lily Some of them like the Spring
field Republican, have gone so far
to accuse the bureau of statistics of
cooking mp figures to show balances
that really do not exist Secretary
Gage Acknowledges that he doesn't
know much about the matter, owing
to the absence of reliable data as to
the repurchase of American securities
formerly held abroad The London
Times feels sure that the trade bal
ances are more imaginary than actual,
and that the United States is far from
being the financial power which its
people hatter themselves it is The
latest contribution to the question APP
pears in the New York Times, from
the pen of Mr.. Nathaniel T. Bacon.
who seems to have taken uncommon
pains to get at the facts Mr. Bacon
believes that European investments in
the United States in long time bonds
are probably S1,7eO. 100000, with a bill
lion and half for the minimum and
two billions for the maximum, and
that we are buying back the securities,
or paying off our European indebted
ness, at the rate of something like
$500, 100000, and if the present state
of prosperity and international trade
could be continued we would wipe out
the entire account in five years From
July L, 1899, to the end of 1901, a peri
cd of thirty months, he computes a
visible balance in our favor of $3.50
100000. He conjectures that $685.
900, 900. or $3.50, 200, 900 a year, is set
tied for by remittances for interest,
expenses of travellers, incomes of Am
penditures outside of the United
States. and gifts, like Mr.. Carnegie's
gift to the Scotch universities; that
$265, 900 900 of American capital has
been invested abroad in this period,
and that Americans have bought $685.
oOO,O 900 of foreign bonds and bought
back 1925, 000,0 of American securI-
ties, these items aggregating $780,
900, 900.
The one thing that appears to be
certain is that in the past four years
this country has succeeded in placing
itself on Easy street as regards pay
ments of foreign Indebtedness and in
terest and dividend disbursements
How we got there is easily told. The
world wanted the things which we had
to sell to the amount of about 81, 400,-
000,0 in the year just closed, and in
stead of paying US back in <manufac-
tured commodities, as would have
been the case under a continuance of
low tariff and no tariff conditions. we
have had our pay in cash or its equiva-
lent in debts discharged or expendi-
lures offset. We have not only paid
interest and dividends American
securities owned abroad and on for
eign capital invested in this country,
but we have made good the $4,000
900 paid to foreigners for carrying our
oversee freights, also the big sums
which foreign companies tax for
marine insurance, and the big sums
spent by American tourists In addi-
ton we have taken our pay in huge
blocks of American securities, so that
this years January disbursements of
interest and dividends have gone al
most altogether to American holders,
instead of going in great part to for
eign holders, used to be the case.
All this has been going on for four
years 1t would not and could not
have gone If we had been operating
under a free-trade tariff instead of a
protective tariff. Be our apparent or
our actual trade balances what they
may, they are ours because of protec-
ton.