The St. Louis Republic., 1902-01-25
A POPULAR MIscoNcEPT1oN.

Administration organs have been giving such un-
due prominence to the reported excess OF exports
over imports there is need for the public not to
confuse this fictitious balance Of trade with the status
Of custom values and their relation to our prosperity
In round figures, according to Government reports,
We have exported during the past twentyeight years
goods to the value of FIVE and half billion dollars
in excess of importations.
One and quarter billions Of this amount is re-
ported as the favorable balance of trade which ac-
csmuiated during the years 1900 and 1901 Does this
mean that If we continue sending out $6O0.OO0,OOO
worth OF stuff each year for fifteen years longer
that we shall have all the available gold supply of the
world? Is not this the impression that certain Re-
publican politicians would create?
Yet nothing be further from the truth. The
Fres Trade League has endeavored to correct the
tables which have been prepared by the Treasury De
partment In dealing with imports and exports. For
iince the correction proves that there should be
Reduction Of least 10 per cent in the values given
to osAmerican goods sent abroad because Of the no.
tor1ous fact that many of exports are sold in
European markets below home prices. This is es-
peoaly true Of iron Steel "copper" COAL lead salt and
number of patented articles.
Importers must pay duties and foreigners are not
ayeesa to taking advantage of the privilege of quot
ng the prices of their goods at less than cost This
item would amount to 10 per cent. Also, imported
$50000000 last year, according to the Government
stetistics. The tariff tax aggregated $23s 741 in
lDOL OF course these added to the cost Of i'm
ported articles.
90 that for last year 10 per cent should be taken
on the 81, COS 21as74 which is given the total
value Of EXPORTS thus making s., ,444 697 s97
the actual cost to foreigners of goods bought from
n. On the other hand, 10 per cent should be added
10 the reported price Of articles imported by
Adding the freights and the tariff tax we have
actual value of 3O6 405S 500 for imports in place
Of 1926 10s244, the sum given by the Treasury re-
ports, With these deductions and additions the
favorable" balance Of trade shrnks to $13S 0SS
Where does this balance go? Part to foreigners
from whom have borrowed money, part is spent
abroad by tourists part in repayment Of foreign oans
part in Investments abroad part in credits allowed
Stand abroad and another part in payment Of ocean
neights to owners Of foreign bottoms.
There can be no such thing a favorable balance
Of trade. Values must be equalzed. Because we
export is rather evidence Of past extravagance or
q Indebtedness which trying hard to cancel.
We could import instead OF export, we would have
mofe money because we would be clear Of debt.
~ II was Daniel Webster who declared in his great
ffeetfade speech in the Congress Of 1924 that the
Sc6 OF imports over exports in truth usually shows
tie gains, not the losses, Of trade. he illustrated
this remark by the example of a merchant vessel
which. with q cargo worth $4,000. sailed from
te1 the proceeds in the merchandise Of that coun-