The Providence news. (Providence [R.I.]) 1891-1906, 1903-11-30

II any one should tell you that the
right way to save and get rich Is to
| run into debt and to consume more than
you produce you would doubtless think
him crazy You would be, justified In
holding such an opinion, for IT is i'm
possible to prosper except by thrift and
the expenditure OF energy.
Nevertheless you will be seriously told
by Free-Traders that nations may pros
per by practices which bring disaster to
individuals. And IL you are incredulous
you will be reminded that Great Britain
annually imports sS50.0o0.0O0 worth more
| OF commodities than she exports.
That this Is not misrepresentation or
| the Cobdenite position will be conceded
IL you take the trouble To examine the
Free Trade arguments concerning the
| balance OF trade. I have an article be-
| fore me now I'm which the writer says:
In the United Kingdom the value OF the
| imports exceeds that of the exports by
| nearly two to one: and IL Is out of this
| difference that the wages OF the coun-
| try are paid and the enormous profits
! of the British factors are accumulated.
In short. according to this writer, who
voices the once currently entertained
Golden view. the British are able to pay
| great sums I'm wages and to make great
profits In merchandising because they
| buy more than they sell.
| The puerile character OF this assump-
| ito Is. exposed by single question: If
| Great Britai profits so greatly by buy
| ing more than she sells, why does she
not buy still more and further augment
her profits?
| There Is one obstacle In the way OF
| buying. and that is the necessity OF pay
| ing for what is bought. IL 1t were not
| for this obstacle other nations might
| have attempted TO follow the Cobdenite
! plan of getting rich by taking more
| from foreigners than they were ready
| to give in return.
| II will be found on investigation. how
ever, that whenever peoples. who have
| not already established the right to draw
! from foreigners more than they give in
| return. bury more than they sell, they
run into debt. This process may be con-
tinued for a time. but the ultimate re-
suit must be greater exports than i'm
ports. for there is always a day OF
| reckoning for the debtor.
1t is only by investing in foreign coun-
tries that the people of nation can for
| any considerable period import more
| than they export. IL was through the
exercise OF skill and the practice OF
! thrift that the British put themselves I'm
the position of being able TO draw upon
foreigners, and not by importing more
| than they export.
| The present ability of the British to
import on so large a scale is directly
traceable TO excess exports in former days.
During considerable period Great Britain
drew upon her natural resources, coal and
iron. to establish herself I'm the position
OF n creditor nation. She temporarily
profted by parting with these resources
and invested the proceeds In other lands
whose resources her capital is now help
ing TO exploit.
| II would have been impossible for her
| to have attained her present position by
following the Golden formula, and she
cannot retain II by any such device Great
! Britain does not profit or add 20 her
wealth by buying more than she sells
She is simply taking what Is due to her,
and In the nature of things her capital
must shrink. unless she can find means
to augment her export trade or extend
her investments abroad.
The curious Illusion of the Cobdenites
that the modern Protectiontst is under
the delusion that a country must export
more than Ii imports In order 20 obtain
gold Is disappearing and erstwhile Free
Trade editors are beginning 20 rational
|
of trade" and now approach II from the
true standpodnt-that OF debt and credit
Thus we find the London "Statist," In
an article recently published. discussing
as follows:
Thirty years ago OF so a very large part
Of the government debt of the United
States was held In Europe. Now the
amount of the debt so held is hardly
worth talking OF. Ten years ago the
amount OF Industrial securities held In
Europe was enormous. Ten years hence
the amount that will still be held by
Europe will in all probability be quite
trifiing. The United States in another
ten years will be n great shtpownine
country. will own Its own securities and
send its goods on board it's own ships
and we shall not only have TO pay freight,
insurance and commission likewise. When
our imports from the United States exceed
our exports TO the United States by floO.-
900 900 or more, what Will become or our
| money market, and how shall we make
the payments which somehow or other
will have to be nader
No Cobdenite has attempted TO an
swer the question propounded by the
London "Statist." Any attempt on the
part of a Free-Trader TO do so would
expose the utter folly Of the assumption
that excess Of imports indicate a healthy
Industrial condition. The Fee-Trader
response. II he tried TO make his theory
M with the condition which the "statist."
says confronts England. would be: 90
on increasing your imports"
But the London Times told why this
cannot be done when IL recently said:
The workingman's occupation Is going.
and occupation is income Capital r. also
going. IL has been lost altogether TO a
large amount by the falling of I'm our
industries. and II is further scared into