Charlevoix county herald., 1906-11-03
EFFECT ON FINANCE
TRADE BALANCES MATTERS OF
REAL CONCERN.
An Annual Excess of Exports Over
imports Averaging More Than Halt
a Billion Dollars Means Much to
the Financial Strength Of the Unit
ed States.

co states.
The influence OF protective tariff
npOm national finances is rarely recog
nizcI by financial writer's. Ii is never
nancters realize the Importance of ia
vorahIe trade balances, but apparently
give little or no thought as to theil
cause Bankers are not as rule econ
onEests- They appreciate, for example
the enormous value of credit balances
in our international trade, averaging
S50v,d00, 900 a year in the past nine
years of protection, but they are apt to
overlook the fact that it is only
thr0t,gh adequate protection that such
balances are possible; that because
of protection these balances must be
paid In cash or cash credits instead
of being met by exports of commodi-
ties.
Free traders have a purpose in con-
ce:&iIRg or ignoring the part which pro-
tecrbOn plays in national finance They
Selfscm can be induced to mention a
favorable trade balance at all. and
wlEen they do it is generally to insist
that trade balances are of little con-
sequence one way or the other. But
1t woHld seem that the men who make
HD2xSCe their life work and their life
Study ought all of them TO be stall
Want protectionists, and that no
banker could by any possibility be a
free trader Bearing upon this ques-
tfor the following from a financial
review in the New York Evening Post
of recent date is of interest:
With our bankers using their for
cisn credit on the scale employed this
year-S500, 5000 in short maturities
is one current estimate-the course
of the foreign trade balance is a mat
ter of real concern. Last Monday
produced the August statement; it is
far more reassuring than July's. The
sNp0FG balance runs beyond that of
-AuSust in any year since 1901. This
result is obtained. not through de-
GreaSed imports-these exceed by
nearly S10,000,000 any August on the
ree@rd-but by Il still greater rise in
export trade. The question then is
Ge3h, can we rely on continuance of
thisi movement? Apparently, with our
syc&G crops and the active demand
Tor au merchandise abroad we can.
Our international bankers have staked
macI1 ON that result"
IL. is something unusual to be told
by slie Evening Post that the course
0f the foreign trade balance is a mat
Ter or real concern" 1t was never
otherwise than matter of the great
EIf which, outside of the immediate
s59@,900, 900 in short maturities, has
anHEaI fixed charges TO meet amount.
ing 10 about $500. 900. 900. made up of
Interest and dividends on foreign in
vesEnents i'll the United States, for
0isr freight charges for hauling
American commerce going and COM
Ing, money spent abroad by American
travellers and money sent abroad by
citizens to needy relatives
With these annual fixed
charges there was need of our average
OF $500, 600, 900 excess of exports over
imports. If that excess should fal.
us,n.h below 50O,0OO,OO0 we should
IaIF into debt to foreigners. This
woJbld indeed he a matter of real
coascerD when piled on top of the
xSftjetss 900 of so-called short matur-
ItieS" which must be taken care of
We find that for the II months end
Ing with August We sold of our prod
acts To foreigners $1.759,417,S9S and
oosTgssAG foreign products amounting to
- ,257 $50 ,735. leaving balance in our
favor of $505.07S, 1863. 1t may be re-
marked, by the way. that the total Of
our foreign trade for the ~ months,
exclusive of our dealings with Hawai-.
PortG Rico and the Philippines
Hun do we have that balance of
S51j. 07S, 163 coming our way? We
wonder if the American
who must take care of the
5000, 900, 900 or more of short maturi-
ties ever ask themselves this ques-
tion% We wonder if any of them
thinks that we should have these
$500, 100000 annual trade balance
coming our way with a tariff revised
for the purpose of promot-
ing foreign competition, with a tar
in for revenue only or with no tariff
at all? We wonder if any or all Of the
rightly appreciate the inn
IDense consequence of favorable trade
balances made possible solely by the
protective policy of restricting inn
ports.