Ceredo advance. [volume] (Ceredo, W. Va.) 1885-1939, 1906-11-14
EFFECT ON FINANCE.
BALANCES MATTERs OF
REAL CONCERN.
An Annual Excess Of Exports Over
Imports Averaging More Than half
Billion Dollars Means Much to
the Financial Strength of the Unit
ed States.

Billion Dollars Means Much to
the Financial Strength Of the Unit
ed States.
Inc influence OF protective tariff
upon national finances is rarely recog-
nized by financial writer's. 1t Is never
recognized by free trade writer's. III.
hanclcrs realize the importance of IA
'oraDle trade balances, but apparently
give little or no thought a. to their
cause. bankers are not as a rule econ
omists They appreciate, for example,
the enormous value of credit balances
in our international trade. averaging
5000 100000 a year in the past nine
years OF protection, but they are apt to
overlook the fact that it is only
through adequate protection that such
balances are possible: hat because
oil protection these balanC s must be
paid in cash or cash credits instead
of being met by exports OF commodi-
ties.
Free traders have a purpose in con
cealing or ignoring the part which pro.
lection plays in national finance. They
seldom can be induced to mention a
favorable trade balance at all. and
when they do it Is generally to insist
that trade balances are OF little con
sequence one way or the other. But
1t would seem that the men who make
finance their life work and their life
study ought all OF them to be stall
wart protectionists. and that no
banker could by any possibility be a
free trader. Bearing upon this ques-
tlon the following from a financial
review I'm toe New York Evening Post
OF recent date is of interest:
With our bankers using their for
eign credit on the scale employed this
yaar-$5OO,O 100000 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; il is
far more reassuring than Julys The
export balance runs beyond that of
August in any year since 1901. This
result is obtained not through de-
creased Impoverished exceed by
nearly $4,000. 900 any August on the
record-tut by still greater rise in
left, can We rely ON continuance of
this movement? Apparently. with our
great crops and the active demand
for all merchandise abroad we can.
Our international bankers have staked
much on that result
1t is something unusual to be told
by the Evening Post that the course
OF the foreign trade balance is a mat
ter of real concern" It was never
otherwise than a matter OF the great
est concern to the finances OF coun-
try which, outside of the immediate
$500, 100000 in short maturities. has
annual fixed charges TO meet amount
ing TO about $500 1000. made up of
interest and dividends on foreign in
vestmcntS in the United States. for
eiSn freight charges for hauling
American commerce going and com
ing. money spent abroad by American
travellers and money sent abroad by
naturalized citizens to needy relatives
abroad. With these annual fixed
charges there was need of our average
of $5OO,OO0,O0O excess OF exports over
imports. If that excess should fall
much below $500 600. 900 We should
| fall into debt TO foreigners. This
would indeed be a matter of real
concern when piled on top of the
$500 600, 900 OF so-called short matur-
titles" which must be taken care of.
We find that for the ~ months end
! ing with August We sold of our prod
ucts to foreigners $I759.417.S9S and
! bought foreign products amounting to
.25i399,735. leaving balance in our
favor OF s505.O7S. 163 II may be re-
marked. by the way. that the total OF
nur foreign trade for the IL months.
exclusive Of our dealings with Hawai-.
| Porto Rico and the Philippines
about $4,000, 600 was $2.O1&SI.G&3
! How do We have that balance of
S5O5, 07S163 coming our way? We
! sometimes wonder n the American
! fnanciers who must tekc care of the
/ $500, 100000 or more of short maturi-
ties ever ask themselves this ques
ton? We wonder 81 any of them
thinks that we should have these
S500,0000O0 annual trade balance
coming our way with q tariff revised
downward for the purpose OF promot-
Ing foreign competition. with tar.
iff for revenue only or with no tariff
At all? We wonder if any or all OF the
fnanciers rightly appreciate the i'm
mcnsc consequence of favorable trade
balances made possible solely by the
protective policy of restricting i'm
ports