The citizen. [volume] (Berea, Ky.) 1899-1958, 1907-02-21
WORLDS MILCH cow
AMERICA DRAINED FOR BENEFIT
OF FOREIGN COUNTRIES.
Enormous Sums Sent Each Year by
Foreign Born Wage Farmers in
the United States to Their
Relatives Abroad.

The extent 10 which the American
mich COW Is drained for the benefit Of
| foreign countries is made the subject
OF an interesting editorial in the New
York Tribune of Jan. rs. IL would Ger.
| talnly seem that she is furnishing
milk for all creation in increasing
quantities. The American Economist
has already shown that in the fiscal
year ending June 80, 1906. the huge
sum OF $685.. .S67 went out of the
United States 10 the shape Of postal
money orders payable abroad. and
that the total OF such orders issued
In the seven fat protection years. 1900
| TO 1906, inclusive. was s249.14S.0s2.
against a total OF slI2.5S6. 5Ss for the
eight leaner years from 1892 to 1899.
inclusive. years made leaner by free
trade tariff legislation. Attention was
also drawn TO the fact that with the
addition OF money mailed in registered
letters, in express money orders and
| in bank drafts OF small amounts the
total sent back 10 Europe by our for
eign born wage earners would prob
ably not fall far short OF 500. 600 900
In 1906.
From figures published by the Aus
tro-Hungarian Colonial society Il ap-
pears that in 1903 the remittances OF
Austrians and Hungarians settled in
America amounted to $40 900 600,
while the gross value OF Austro-Hun-
garian exports TO America in the same
year amounted TO only 100000. II
thus falls out that the poorly paid
workers OF continental Europe yield
far greater profit to their former
home countries after emigratlng TO
the United States than n they had
never emigrated.
II is. moreover. true. as the Trib-
une points out. that considerable
percentage OF our immigrants remain
la this country only long enough 10
accumulate savings that will enable
them to go back and spend the re-
mainder OF their lives in the mother
land. All told. the money RENTED
abroad and the money carried abroad
by returning wage earners must
amount to a rather formidable sum
each year.
| This sum must then be added 20 the
already great bulk OF our foreign fixed
charges. such as payments TO foreign
steamship companies for carrying
American passengers and freights. IS.
! timated at 5000 100000 a year. the in
terest and dividends on foreign invest
ments In the United States. and the
sums spent abroad by American tour
lists. When all these items OF outgo
are footed up they reach a total so
great as to seriously affect the dues.
ton Of national debts and credits.
They demonstrate the absolute neces-
sity OF protection trade balances aver
aging $500. 10000 a year. represent.
ing our excess Of exports over imports.
II we bought where we sold as the
free traders and "reformers" would
have us do: II We entered upon the
system OF increasing our foreign trade
| through the acceptance OF larger Inn
ports in payment for our exports: ~.
for example, our 81, $50. 900. 900 Of sales
abroad were Cancelled by $3.50. 900. 900
OF purchases abroad, how would we
then meet our foreign fixed charges OF
~ least 100000. 900 a year? We could
,Ot meet them except by running into
,ebt deeper and deeper through bond
Issues to cover annual deficits.
AS the case now stands. our protec-
| tlon trade balance Is ample to take
care Of our foreign liabilities aud leave
something over with which to buy
back American securities held abroad.
| Instead OF going deeper into debt. as
would inevitably be the case " we did
not restrict competitive imports by a
| protective tariff. We are gradually pay
ing our debts owed abroad. while at
the same time enormously increasing
our wealth at home.
The Tribune proposes no remedy for
the heavy outflow Of American money
| In the form OF remittances abroad by
wage earners OF foreign birth. Nor do
we know OF any way tn prevent for
eigners from coming here and earning
big wages and sending them back To
| Europe, unless II be by restricting i'm.
| migration OF prohibiting II altogether.
In the present condition OF tho labor
market. when three Jobs arc looking
| for two men, that remedy does not
seem feasible.
Yes: there Is another remedy. Re
wise the tariff downward; approach a
free trade basis; reduce prices OF com
modities; reduce wages. and the $780,
| 900 900 OF annual remitiances abroad
| by American wage eaTncrs will rapid
| ly dwindle to one-quarter Of that sum.
or less. The tide Of immigrants seek
| ing work will also fall away. Iiut that.
too, is a remedy which all excepting
free traders and ''reformers' will
shrink from applying. So Il would
seem that the American cow must
continue to give milk to all mankind.
Fortunately, through protection 10
American labor and industry. the COW
has enough and to spare.
II is argued that the country Is NJ
! prosperous that II Is bad time 10