Middlebury register. (Middlebury, Vt.) 1886-1937, 1907-06-21
The Balance of Trade.

banded themselves together in political
institution known as the United States,
its statesmen realized that hard strug-
gle was before them as in every depart
ment of commerce the balance of trade
was against them-in other words, they
were sending more money abroad for
what they needed than they were re-
ceiving from abroad. This condition has
been of vital interest to every new coun-
try, and even to some who count their
ages by the century. When anyone or
any community arrives at that period in
its experience where more moneyis COM
ing than going out, they are certainly
building a strong foundation for the fu-
ture. That is what is making the United
States wealthy today-we are keeping
our money at home. Then when we
need it, it is not necessary for us to look
to foreign powers for a loan-we have
it among our own people.
There is little in the experience of the
lives of nations that may not apply
with just as much force to the lives and
undertakings of the individual commune
ties. In fact it applies with almost equal
force to the lives of the individuals
themselves. So closely is this principle
allied to the welfare of communities that
it is worthy of consideration by the per-
sons who are inclined to send their mon
ey to foreign markets for what they
need A better way is to keep our mon
ey at home. Really this applies with
greater force to an agricultural COM
munity than to almost any other. Let
us illustrate for the purpose Of making
ourselves more clearly understood. There
was in active everyday circulation
among Its people the sum of $4,000 in
the month of January. The sum is in
circulation because it is needed to con-
duct the business of the community. If
all of it was not needed. a part of it
would retire and if more was needed it
probably would be forthcoming from
some source. We have now seen that in
the month of January the people of the
county have $50, 900 to do business with.
Suppose that during the month its citi-
zens sent 900 of this circulating CAPT
tai to large cities for machinery, sewing
machines, clothing, groceries, hardware,
barb wire, lumber, or whatever it may
be they need. In sending to catalogue
bouses for these supplies we are not
overdrawing the conditions as they exist,
for as strange as it may seem, people
have so far forgotten the interests of
their home communities as to be doing
this very thing. When this S25, 900
reaches Chicago, New York or Boston,
and other large cities, our imaginative
county has only S25, 600 left as an active
circulating medium. They have cut
their active capital in two in the middle
AS we said this condition applies more
minutely to an agricultural community
for such neighborhood has only two
ways of bringing money into it. One OF
its crops. The other way we will speak
of later. Our illustration as we have eX
pressed it applies to the month of Jan
uary apd as we have said one of the
means farm community has of getting
that $4,000 back again is in selling
crops, which they would not be in 8
position to do again for almost a year
They have depleted their actual capita
by one-half and will have nothing to sci
to get it back for nearly year. We
have said there was another way of get
ting this S25, 900 back and that way is tC
borrow it-hire someone to bring it bach
it in use. What have we done-split oul
capital in two in the middle and sent il
to distant cities where we know there il
no hope of its returning for nearly s
year unless we hire it brought back. Or
the other hand, suppose we had bough
what we needed of merchants in oul
immediate vicinity. The $4,000 would
still be circulating among us and W,
would still have our $50 900 active work
ing capital.
In the first place there is nothing
saved by buying away from home. l
may seem so at the time, but if WI
understood all the tricks in the trades
and the deception used in the manufac
ture of goods, we would readily be con
verified to the home trading idea. Sec
ondly, we know that such a condition
depletes the working capital of our com
munities and makes us depend upon tn,
very people of Eastern cities whom W,
have patronized. We give them the