The Globe-republican., 1902-02-20

Just now there is a good deal of dis
cussion going on regarding the big
trade balances piled up by the United
States in the past four years of protec-
ton and prosperity 1t is subject
which worries the free traders might
ily Some OF them, like the Spring
field Republican, have gone so TAR as
to accuse the bureau of statistics OF
cooking ND figures TO show balances
that really do not exist Secretary
Gage acknowledges that he coesn
know much about the matter, owing
to the absence of reliable data as 70
the repurefase of American securities
formerly held abroad The London
Times feels sure that the trade Da1-
ances are more imaginary than actuai,
and that the United States is far from
being the financial power which its
people hatter themselves 1T is The
latest contribution to the question ap-
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 MT Bacon
believes that European investments in
the United States in long time bonds
are probably 81, 700. 600 900, with a bill
lion and a half for the minimum and
two billions for the maximum, ana
that we are buying back the securities,
or paying off our European indebted
ness at the rate of something IKE
$500 OOO, 900, and if the present state
of prosperity and international trade
could be continued we would wipe out
the entire account in i've 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 $l,9lo,-
| 600 900 He cOnjectures that $3.50
| 900, O0O or $3.50 100000 a year, is set
| tied for by remittances for interest,
| expenses of travellers, incomes OF Am
| orleans living abroad. military ex-
no
States, and gifts, like Mr. Carnegie
| gift to the Scotch universities; that
| S265 100000 of American capital mas
| been invested abroad in this period,
| and that Americans have bought S95,-
! 600 900 of foreign bonds and bought
/ back S525. O00, 900 of American securl-
| ties, these items aggregatIng S1,olo,
| 100000.
/ 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 hao
| to sell to the amount of about Sl,4oo,
600, 900 in the year just closed, ana IN
stead of paying US back in manufac
| tured commodities, as would have
been the case under continuance o.
low tariff and no tariff conditions, we
have had our pay in cash or its equ1Va
lent in debts discharged or expendi
| lures offset. We have not only pa1f
| interest and dividends on American
securities owned abroad and on for
eien capital invested in this country
but we have made good the 100000
600 paid to foreigners for carrying GU
oversee freights, also the big sum
, which foreign companies tax US 10
marine insurance, and the big sum
spent by American tourists In add
ton we have taken our pay in hug
, | blocks of American securities, SO tina
this years January disbursements o
interest and dividends have gone a
4 most altogether to American holders
: instead of going in great part to fol
eign holders, as used to be the case
All this has been going on for fou
| years 1t would not and could nc
have gone on if we had been operatin
{ | under a free-trade tariff instead of
. protective tariff Be our apparent O
: our actual trade balances what the
! may, they are ours because of prote'
ton