The San Francisco call., 1903-09-18

the British Board OF Trade containing statistics
which show various aspects of the trade and the in
dustres of the country. In hardly single respect IS
the showing encouraging to the advocates of the ex
listing fiscal policy for the sum total OF the whole is
renewed revelation that the imports of the country
increasing in a much larger percentage than the
exports and that some extent at least the British
OF this generation are consuming their capital.
Some of the significant figures OF the report
those showing that in the period between 1890 and
1902 the total exports to foreign countries actually
diminished to the amount of $oo,ooo,ooo while the i'm
ports steadily increased In the trade with the
United States the change brought about during the
period was remarkable, for exports from Great Brit
ain to the United States declined in that time from
$I45,ooo,ooo to $o7,oooooo, while imports from the
United States from $585 600 600 $635
1t is further noted that the proportion of the United
Kingdom exports, as between protected and unpro-
tected countries, in the markets of the world, has
been reversed since 1850. Then it SO per
the protected countries and a. per the others
In 1902 the proportion was ~ per cent to the pro-
tected countries and So per cent to the others.
A crumb of comfort is offered to the free traders
in the statement that the excess of imports
ports is sign of decline in British wealth or of
consumption of capital. Thus it is said that while
the yearly averages about $780, 100000 the in
receivable from foreign investments calculated
at $3I2 5ooooo added the earnings of the British
merchant fleet engaged in foreign trade calculated at
S45oooo,ooo, is probably than sufficient to &C
count for the average excess of imports"
While it is unquestionably that a large per-
centage of the excess of British imports over exports
is paid out of revenues derived from foreign invest
and from freghts paid for shipping is doubt
full if the free traders maintain the doctrine that
the whole of the is thus paid for. The
number OF the National Review presents a strong ar
ray of arguments the other side and submits
series of tables of comparative statistics showing that
the consumption of capital is actually going and
portentous rate.
Discussing the subject Are We Consuming Our
Capital?" of the writers for the Review, R. H.
Inglis Palgrave of the trade between 1881 and
1891: People generally assume that we must have
made what we sell The figures for 1881,
1891 and 1901 are f234ooo ooo 100000, f28oooo
ooo This looks like a satisfactory increase nearly
f5o 100000 in twenty years. But these figures include
coal exported Coal is taken as illustrative of this
class of goods. = Coal is merely raw prod
uct extracted from the SOIL not manufactured article
at all"
Deducting the coal and similar raw products of the
soil from the exports, Mr. Palgrave shows that the
entire manufactured exports increased in value dur
ing the twenty years under review only the amount
of fI5,ooOooo He then adds Meanwhile our ex-
ports of the irreplaceabe mineral wealth Of the coun
try had increased about f22 900 in that time Man
uiactured goods be made but mineral products
once extracted from the earth never be replaced
1t is difficult to realize this 1t means that we are
selling every year so much of the soil of Great
Britain as is equal in value to of counties"
To those and similar arguments of the advocates of
protection the free traders reply by asking upon what
class OF imports they purpose to place the proposed
duties. Then they submit an analysis OF the imports
Of the United Kingdom in this table:
Per Cent
of Total.
Food ................... AS
Liquor .-.-'.'-...----- L5
3. materials industry ............. 26e
f. Crudely manufactured materials for in in
dustry ........... .................. 54
5 Wholly manufactured materials and plant for
Domestic appliances and personal necessarles...
Luxures ................ "a
Miscellaneous ............... 26
There in nutshell is the argument against Balfour
Upward OF s. per cent OF the entire imports are made
up of food products or of raw material necessary to
the industries OF the people Upon which of these
classes will the protectionists place their tariff? That
is the issue that conrons John Bull and it is at
all surprising that he is worried about it.
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Manchuria is intended huge diplomatic, practical