The independent., 1905-08-31
MORE INTEREST IN MONEY QUESTION

MORE INTEREST IN MONEY QUESTION
A significant sign of the times is that tn
money question, which has been almost unnotlce
or long time is again attracting attention. IN
Missouri World predicts an outflow OF gold dul
ng the next few years:
The outlook is that there will be large gold
exports from the United States to the oid
world within year. Japan has SOLD Donds
here to the amount Of 100 million dollars ana
has as yet withdrawn only a small part OF the
proceeds. Russia's new bonds, while not
originally sold in the United States, will likely
be the cause of the withdrawal OF consider
able gold from this country, as it is proDapie
that French capitalists who take the Russian
bonds will send to this country some OF the
American railroad and other bonds they own
and sell them here for the purpose OF getting
gold to pay for Russian bonds. There are
other reasons to believe there will be exports
of gold. The cotton crop of the United States
is short and the outlook is there will not De
the usual amount for export. On the other
hand the amount of foreign goods imported
into the United States is increasing. Wnlle
there will be large balance OF trade Ia
favor of the United States, the prospect is It
will be smaller than 1t has been Tor num-
her OF years. Most all the balance OF trade,
some years amounting to 600 million dollars,
has been necessary to offset the interest and
dividends going to foreign holders OF Amerl-
can stocks and bonds and the expenses Oh
Americans who visit Europe. BY balance OF
trade in favor Of the United States is meant
the excess in value of farm products, and
manufactures, etc., shipped out OF the united
States over the value of the goods shipped in
to the United States For example, the
United States last year shipped out $1,46O,OO0,-
900 worth and the value of that shipped in
was $991, 100000. The difference between
these two amounts is 469 million dollars.
Hence the balance of trade was in favor OF
this country to the extent of 469 million dol
lars last year How did foreign countries
pay us this balance? They paid Is million
dollars Of 1t in gold, that is this country re-
ceived SO million dollars of gold from other
countries and sent 81 million dollars OF gold to
other countries leaving difference OF IL mil
million dollars to be applied In part payment
of the 469 million balance of trade. This
leaves 451 million dollars which was paid in
some other way About 100 million dollars
of this was paid by European banks cashing
checks for American visitors to Europe
This leaves 351 million dollars which was paid
in some other way. A part OF this was paid
by ocean freight charges, but how much there
is no way to tell. Most OF the ocean carrying
is in foreign ships, but Americans are inter-
ested in the ships and get part OF the pay
million dollars, was Offset-with ocean
freight charges. Counting freight at 100 mil
lions, there is still 251 million dollars to be
accounted for. This was paid in part if not
wholly with interest and receipts for div-
dends on bonds and stocks issued in this
country and owned In Europe If not entire
ly paid with interest and dividend offsets
then the remainder, whatever that was was
paid with bonds or stocks. But the chances
are that European capitalists receive yearly
from this country as interest and dividends
much more than 251 million dollars. We
have seen that in 1904 it took 451 million dol
lars of our balance of trade to settle the Off
sets Europe has yearly against the United
States. Now, as seems quite probable, il
the balance of trade in favor of the United
States is much less in the next twelve
months than it was in 1904, in what way will
the annual dues to Eur pc be settled? Most
likely by the shipment of gold