The Chickasha daily express. (Chickasha, Indian Territory [Okla.]) 1899-current, 1910-11-22

the factors which caused the imports
of certain countries largely to exceed |
their exports or OF discovering the rea-
son for the exports Of certain countries
largely exceeding their imports"
The volume Of a coIntry's trade
quickly adjusts itself to the needs Of
that country, and the effect OF sud
den disturbing influence to trade, the
author states, can be got over by finan-
cial operations in the great interna-
tional money markets without any ex-
cessive drain on the precious metals.
Movements Of gold and silver are
brought about not so much. by trade
balances as BY the currency and bank
ing needs Of the various countries II
country needs gold, Mr.. Paish main
talns, It has no difficulty in buying II,
provided that it's credit is good.
Various factors make up a countrys
trade balance. A balance often results
from the investment Of capital by one
country in another The lending coun-
try viii receive payment for the goods
1t exports and also for the interest upon
the capital which It has in former years
invested in other countries. Another
factor which goes 10 make up the trade
balance Of country are the services
given BY countries possessing great
fleets of mercantile ships to those coun-
tries which possess little or no ship
ping. Great Britain's fleet renders very
valuable service to the whole world,
and a substantial part OF the imports
OF goods into the United Kingdom is
received in payment of the services
thus rendered. The amounts expended
by tourists must likewise be paid for
by expectation Of goods from the home
country.
In the fiscal year l90S-9 the merchan-
disc exports Of he United States ex-
ceeded the merchandise imports by
1851 oO0000 The exports of gold and
silver exceeded the imports by $eo-
100000 making a total excess OF SAIL
coO00O This excess the author ae
counts for on the basis OF the follow
ing estimates Interest. s250,00o.000i
ourist expenses, S17Gc00.000; remit.
tances to friends, s15O,00o. 600; freigln.
s25ooOOO0.a total OF s295 100000. One
aundred and eighty-four million dol
lars, the sum By which the remittances
exceed the merchandise balance. was
settled. the author states, BY perme-
men or temporary investments OF capi-
T tai IN the United States. The United
States therefore requires an annual ey.
cess Of exports over imports Of nearly
5000. 100000 in order to settle her
trade balance.
+ Although a country In good credit can
obtain in the opinion Of the author,
all the gold il needs yet the supply at
any given moment is limited, and
country needing gold must satisfy its
needs at the time that supplies or gold
are available in the market. Not in
/ frequently it happens that the United
States discover they require gold 10
supplement their banking reserves and
TO provide the necessary currency for
circulation just al the moment that
the demand for gold for other coun-
tries IS also urgent The demand for
gold by the United States "a these
times creates SO great a competition
for the metal hat the rate OF interest
for loans, which is governed maitly
BY the supply Of gold, is forced up in
nearly every country IN the world. to
the serious dislocatloR Of business ey-
erywhere.n
In Great Britain this difficulty. Mr..
Paish says, is met by the Bank OF Eng.
land, which makes It its special duty
Iio look ahead and to endeavor to cb-
tain the gold needed THE success OF
the Bank of Englands action the au-
thor continues. lin maintaining a free
market for gold in London, in protect
ing the banking reserves OF the United
Kingdom in supplying the country
with currency and in taking care Of
the gold requirements OF those couii-
tries which look to England for assist
ance shows conclusKely that the Unit
ed States would be materially assisted
! in obtaining the gold 1t needs for cur
rency and banking purposes at the time
the gold is wanted il they possessed
an institution OF this character"
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AhroIu4nIu rwo~nu%nof