Manchester Democrat. [volume] (Manchester, Iowa) 1875-1930, 1903-04-01
The Invisible Ba,ancc of Trodc.

Statistics of the Brooklyn bridge
show that an average of about 10000
more people cross into New York each
day, than cross back to Brooklyn.
These statistics indicate that Brook
lyn is losing and New York gaining
in population at the rate of 100000
600 year. Sensible men know that
there is no such daily balance Of pop
ulation in favor of or against New
1ork-according to whichever political
theory you accept. Somehow and in
some way, about as many people re-
turn to Brooklyn daily as leave 1t.
Similarly, Republicans are prating
about the great balance Of trade" in
our favor, amounting to from $780,
100000 to $600,00O,0O0 year for six
years, and are attempting to make the
people believe that it is good thing
to he sending out of the country each
year this much more than is being
brought in. Sensible men shake their
heads and refuse to swallow these fig
ures. The trade and commercial pa
pers, like the Iron Age and the New
YIN SoihihSlNldI, dIc 1uUW ulSCuSSluS
the Invisible Balance of Trade"
which punctures both the facts and
theories Of the politicians.
The following table is from the Iron
Age of Feb. &c:
Invisible (adverse) balance of trade:
Interest balance ........ S9OOOO,O 900
Ocean freight balance. $3.50. S5,OOO,OOO
Tourists expenditures ..... J5,OOO,OOO
Repatriation .............. 30,O0O,OOO
Kent balance ............ 25,OOO,OOO
Money sent by resident for
eigners ................ 100000
Total ................. .S205 ,O00, 900
AS the Iron Age says, this table
Shows that the Invisible balance of
trade must run along annually Mt not
much less than $3OO,O0O,OOO to enable
this country to discharge its foreign
liabilities. The return, last year, of
$1OOO00,O00 of American securities
held abroad wiped out all of the re-
mai1.ng visible balance of trade in
1902, says the Iron Age, which con-
cludes that the United States is still a
debtor nation"
At least two very important factors
have been omitted-by the Iron Age.
Our imports of dutiable goods amount
to S5O0,000.OOO year. These are un-
dervalued to about 10 per cent or $780,
100000. We export manufactured
! goods valued at more than $4OO.OOO,OOO
a year. As these goods are sold to for
eigners at an average Of about 20 per
cent below domestic prices the man.
ufacturers quote fictitious valuations
to government officials. 1t Is safe to
say that our exports of manufacturers
are overvalued 10 or Is per cent, or an
average of $40, 100000 year. Adding
these two amounts to our invisible and
adverse balance, we have wiped out
nearly all of the INVISIBLE balance In
our favor even during the last six
years. Undoubtedly the return of Sc
curities during these years has wiped
out any remaining balance This reach.
es the sensible conclusion that we have
not outstanding accounts with foreign
countries amounting to $4,000, 900, 900
or $4,000, 100000. but that in some way
each years apparent balance is about
squared. While we may be slowly
paying our foreign debts, vet 1t takes
more than S1OO,OOO,OOO a year to pay
interest and rents to foreigners. Thus,
IL the Invisible balance Of trade is not
$100,000,00o in our favor we are losing
ground and getting deeper in debit
Byron w. Holt.