The Morris County chronicle. [volume] (Morristown, N.J.) 1877-1915, 1904-06-21

ldFS anu cGutS VI pOuuuS StSAlluS VI
francs or marks are concerned, the to-
tai exports of the world for given
time must equal the imports. OF course
it is true in this connection that the
balance cannot be struck at any par
ticular time There will be lapses of
obligations and differei ces in valuation,
but the statement is approximately
true, nevertheless, that each year the
countries of the world export and i'm
port about $10,000,O00,000 worth Of
merchandise and bullion.
To thoroughly comprehend, then, how
an excess of exports must be in pay
ment Of past obligation or to be paid
for in gold or become a credit to be
liquidated at some future time, and
therefore benefit to the country hav-
ing such excess, Mr.. Trueman and 9TH
ers must analyze thoroughly and I'M
derstand fully the difference between
an exchange of bullion, which is
wealth, and an exchange of consuma-
BILE and perishable merchandise. The
subject is too deep aud too vast to be
discussed in a brief paper such as this.
1t has occupied the minds and the time
of economists for more than a century.
Pages and chapters and volumes have
been written upon the subject, and no
feature of it has escaped argument.
We advise Mr.. Trueman and others
who find it so difficult to understand
what after all is simple and plain
problem to read the works of econo-
mists who have written upon both sides
Of the subject, although it is almost
universally conceded today that a bal
ance of trade is favorable and bene-
fetal to a country. Mr.. Trueman says:
"The imports Of England exceed her
exports, and England is the great cred
itor nation of the world, getting richer
and richer each year as the tribute
from other countries flows to her.
We should advise the man of today
who can make the statement that Eng
land is getting richer and richer each
year to read some of the recent adj
dresses of Mr.. Chamberlain and Mr..
Balfour or to look into the investiga-
ton made ty Mr.. William Booth and
many others concerning the condition
of British agriculture and the British
workingman. England long since be-
gan to sap her capital and has been
growing poorer and poorer for the last
generation. Her public men are now
realizing it and confess it and are plot
ting how to stop the drain which has
and is yearly being made upon her
once proud resources.
While Great Britain has been losing
her wealth for the last generation the
United States has been auginenting her
wealth and resources simply because
we have kept our gold at home and
have paid our obligations in merchan-
disc, which as surplus over our own
needs we could well spare. As well
say that the spendthrift, who year aft
er year in idleness spends for drink
and pleasure in addition to the neces-
sary amounts for food and clothes,
more than his income, drawing upon
the wealth bequeathed to him to settle
his accounts, is growing richer and
richer because he imports more than he
exports-a most absurd statement in
deed
Mr. Trueman speaks of our farmers.
who at the present time are working
SO heroically to pay off mortgages that
when they at last succeed they have
nothing to consume the wretched docu-
ment in but a tallow candle" Mr..
Trueman has evidently been reading
the Democratic campaign documents
of decade ago and does not know of
the wonderful revolution which has
been brought about in the condition of
our farmers by the operation OF the
Dingley law. Western farmers today
are not paying off mortgages. They
are loaning money to eastern capital
lists, and the banks are filled to over
flowing with their savings. They have,
thanks to protective tariff law which
has given wages and larger purchasing
power to the manufacturing workers
of the country, sold their products at
profitable price. They have sold more
than they have bought and with the
surplus have paid their mortgages, inn
proved their property and still have a
remainder to deposit In the bank. In
other words, their exports of merchan-
disc have exceeded their imports, and
their wealth has correspondingly in
creased. 1t il the same with collec-
ton of individuals or nation as it is
with an individual. If more is sold
than is bought there is surplus for
investment or saving. The United
States is today selling more than she
buys, and with that excess of sales she
is and hNs for some time not only heen
paying annual current obligations, but
has been reducing the principal of her
international debt
On the other hann, england has been
buying more than she has sold. ana
for this excess of imports She must
settle in cash, and to do so she must
break IN upon her principal she must
decrease her wealth. With her accu-
mutation OF hundreds OF years under
protection, with her vast capital and
investments abroaa and her wide re-