The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1904-01-23
ENORMOUS EXPORTS
FinancierS Will Wonder About
Effect ofDea|ings.
PAID FOREIGN DEBTS
Trade Figures of 1903 Are
Most Striking.


cember foreign trade, as shown in the
governments report of yesterday, will IN
questionably revive discussion, on the
markets, as to how this enormous ex-
port surplus is likely to affect our finan-
cial situation. The case, as IT presents
itself to the mind of the optimist. is much
as follows: 1t is conceded that the for
ward impetus to our prosperity. after 1897,
was closely connected with the immense
and legitimate expansion of our export
trade. In the very next year, exports
increased nearly a quarter of a BILLION
dollars over the highest previous record;
BY 1900 they had increased $500 0oo. 900 more.
Not only did our producers and manufact-
urers get the benft of a widely extended
and profitable market, bpt Europes pur-
chases were 80 greatly increased that the
country was able in effect to buy up the
European holdings Of our securities. pay
ing for them mostly in wheat cotton.
packed provisions. steel and iron. 1t was
at one time acknowledgements the close
of 1eo0-that an actual fund Of two or
European markets to the credit of our
bankers. AT all events, no one questioned
the high pitch of prosperity and financial
activity which was associated with these
trade developments.
Reviewing this interesting precedent the
optimist proceeds TO point out that the
trade figures now coming TO hand make a
more striking show even than those of
1900 Passing over the fact that both ex-
ports and imports, during 1903. surpassed
all precedent. IL Is noticed. more particul-
srly. that the excess of exports over i'm
ports, during December and during the
all precedent Every record in the coun-
try's history was broken in the three last
months of 1900. for which thegovernment
reported $24l 900 export excess in our
favor. But the similar excess. for the
quarter just passed was 1888 90 900 Fur
thermore, the movement is progressive
October is yer yapt. as in 1899, 1900 and
1901, to be the banner month in export
trade. But as against last Octobers 1850
100000 exports, December's rose to STA
100000. Excess of exports. which was
SIS, 40o00o in October. touched $e6 900. 900 last
month";, 800 900 over any previous month
All this suggests the question whether the
markets are to witness any of the pheno-
mena in finance which widowed the sim
liar, but less remarkable trade showing
of three or four years ago
The foreign credit balance which is be-
lieved 10 have been created as a result
OF the foreign trade of 1898, 1899 and 1900
was devoted partly TO buying back our
own securities, partly to buying foreign
gold and partly to purchasing European
government securities. European ships ard
so on. Eventually. what was still left of
the international credit was swallowed up
In the huge wave of debt incurred for the
home financial adventure OF 1901
Surprising a similar or larger foreign
credit balance to be now accommodating. it
is the general believe of the banking COM
1nunity that it would first be automa tic
ally applied TO eStlnguishing the floating
Indebtedness incurred abroad last summer
by our railroads. 1t would also and
naturally, be used TO facilitate such an
operation as the s4o.0so,oeo Panama pay
ment. The feeling has Sbeen freely express
sed in London. recently, that q secondary
use of such credit would be TO draw
gold from the foreign markets; but it
is recognized by bankers that in case of
any tsarin through the eastern war un-
settlement we should be much more likely
to leave the balance at the service or The
foreign markets. There is not believed
TO be the slightest chance of our markets
participating in aany of the foreign war
Tomas.
The question which many people are
asking in the same connection. however.
is how far TIE export credit has any
certain relation to prosperity Opinions
are onot altogether in agreement on this
point. 1t depends on the circumstances
OF the sales to foreign customers on the
prices paid and on the surplus left at
home. In 1897 and 1898. for instance. there
was no doubt whatever as the bearing of
the enormous wheat exports on the coun-
try's prosperity. Our own crop was suf-
ticient for both home and foreign custom
ers; the foreigners need was urgent and
he paid very profitable prices. In the ex-
port trade of the past three months. cot
ton has played the part performed by
wheat In 1898. But the question is still
undecided. whether the .35s6. 900 bales. sent
abroad in the three past months. were
spared fro ma sufficient surplus. or
whether Their shipment left behind not
enough 10 supply domestic spinners. OF
course. If This second possibility were TO
be the outcome. the magnitude of the
recent exports would in reality be a
misfortune.
\ somewhat similar controversy exists
over export. of manufactured goods In
1898 and 1899. the foreign demand. in steel
and iron especially. was all but insa;ia BILE:
foreign producers could not meet IL and
therefore foreign prives were in our favor
No such situation now exists; the foreign
demand is less urgent than in the later
nineties while cost OF materials and labor
at home is higher. 1t thus becomes
question whether largely increased ex-
ports. at the prices ueceSsitated arc real
~ profitable TO the makers II not then
nothing is gained. in an economic way. By
Increasing those exports 4 market might
conceiveably increase its export sales
enormously by selling goods below cost
of production. But such 2 market would
be well on the road te ruin.
Be sure bottle OF Piso's Cure Is kept
on hand for sudden colds All druggists
Washington. Jan. 2s--word has been
received al the ravy department CT the
arrival at oiongapo. in Suhig Bay. Of
Rear Admiral Evans battieship squad
ron. consisting OF the Kentucky WIS
eonsin and Oregon
Paris. Jan. 1.-The senate today re-
iected the bill for the compulsory abo-
lltion OF employment agencies. with COM